Minutes of the regular meeting of the Water, Light, Power and Building Commission of the City of East Grand Forks, Minnesota held May 16, 2006 at 5:00 P.M.

Present:  Ogden, Gregoire, Quirk, Vetter

Absent :  None

 

It was moved by Commissioner Gregoire second by Commissioner Quirk that the minutes of the previous meetings of May 2 and 9, 2006 be approved as read.

Voting Aye:  Ogden, Gregoire, Quirk, Vetter

Voting Nay:  None

 

The following bills and payroll were recommended for approval:

CHECK  NO

VENDOR

DESCRIPTION

AMOUNT

28271

Paul Erickson

VOID

-538.51

28349

Chad Troitte

Expenses

433.64

28350

MMPA

Energy/demand

295,080.52

28351

Acme Electric

Supplies

56.95

28352

Ameripride Linen/Apparel

Contracted services

168.62

28353

APPA

Dues & subscriptions

145.00

28354

AWWA

Dues & subscriptions

206.00

28355

Big Jim’s East Side Tire

Maintenance

11.73

28356

Border States Electric

Supplies

410.95

28357

Dan Boyce

Expenses

309.59

28358

C L Linfoot Co

Contracted services

902.05

28359

CDW Government Inc

Supplies

51.01

28360

Carquest Auto Parts

Supplies

20.37

28361

City of EGF

Transfer

249,258.37

28362

Comfort Inn

Travel & school

307.96

28363

Commissioner of Revenue

Sales; use; grbg surchrg

35,696.00

28364

Dakota Supply Group

Inventory

30,442.24

28365

Dell Marketing LP

Supplies

33.50

28366

East Grand Station

E-85 fuel

176.84

28367

Ecolab Vehicle Care Division

Supplies

585.60

28368

Paul Erickson

Expenses

41.00

28369

Exponent

Advertising; publishing

1,167.24

28370

Fargo Water Equipment

Supplies

1,832.40

28371

Fed Ex

Freight

22.82

28372

Galstad Jensen & McCann

Legal fees

60.00

28373

GF Fire Equip Co

Maintenance

83.56

28374

GF Utility Billing

Water tests

250.00

28375

GF Welding

Supplies

1.07

28376

Hardware Hank

Supplies

112.74

28377

Hawkins Inc

Wtr treat chemicals

3,159.20

28378

Holweger Excavating

Contracted services

1,360.00

28379

Home of Economy

Supplies

15.99

28380

Hugo’s #5

Supplies

16.92

28381

Impressions International

Supplies

75.00

28382

Interstate Power Systems

Contracted services

2,256.78

28383

KBM Inc

Professional fees

5,155.29

28384

Leighton Broadcasting

Advertising

440.00

28385

M & W Services Inc

May 1-11 meter reads

1,189.10

28386

MeritCare Medical Group

Drug test

21.00

28387

Midcontinent Comm Adv Sales

Advertising

672.00

28388

MMUA

Professional fees

250.00

28389

Olsen Chain & Cable Inc

Supplies

1,695.03

28390

Pitney Bowes Inc

Supplies

252.89

28391

Porta-Mix Concrete

Supplies

24.50

28392

Qwest

Communications

1,123.54

28393

Radix Corporation

Maintenance

136.50

28394

Randy Rapacz

Expenses

733.65

28395

Rydells

Maintenance

25.38

28396

Spiegel & McDiarmid

Professional fees

725.26

28397

TDS Metrocom

Communications

41.04

28398

Tony Dorn Inc

Service agreements

158.86

28399

Verizon Wireless

Communications

212.52

28400

WAPA

Current

96,232.52

28401

Water & Light

Utilities

11,696.00

28402

Wesco

Inventory

341.87

28403

X-cel Energy

Facilities/distribution

5,192.94

 

 

Payroll

51,937.34

 

TOTAL

 

$750,533.04

 

It was moved by Commissioner Quirk second by Commissioner Gregoire that the bills and payroll be allowed as recommended and the Secretary issue checks for the same.

Voting Aye:  Ogden, Gregoire, Quirk, Vetter

Voting Nay:  None

 

It was moved by Commissioner Quirk second by Commissioner Gregoire to pledge to the city $100,000.00 out of reserves for a flood memorial.

Voting Aye:  Ogden, Gregoire, Quirk

Voting Nay:  Vetter

 

It was moved by Commissioner Gregoire second by Commissioner Vetter to approve the request to fill the position vacated by the resignation of Jason Strand, and direct the Civil Service Secretary to advertise for the position of Apprentice Lineworker.

Voting Aye:  Ogden, Gregoire, Quirk, Vetter

Voting Nay:  None

 

The Commission heard from the Teamster’s representative concerning an open grievance. After hearing all sides, the grievance was denied.

 

It was moved by Commissioner Quirk second by Commissioner Vetter to approve the purchase of a Bobcat Tool Cat in the amount of $

Voting Aye:  Ogden, Gregoire, Quirk, Vetter

Voting Nay:  None

 

It was moved by Commissioner Gregoire second by Commissioner Quirk to approve hiring a consultant to assist with the purchase of new software.

Voting Aye:  Ogden, Gregoire, Quirk, Vetter

Voting Nay:  None

 

Commissioner Vetter, supported by Commissioner Gregoire, introduced the following resolution and moved its adoption:

WHEREAS, there exists a standby power contract between the Water, Light, Power and Building Commission of the City of East Grand Forks, Minnesota and American Crystal Sugar Company; and,

WHEREAS, the East Grand Forks Water and Light Department now has a new contract with Minnesota Municipal Power Agency to provide standby power,

BE IT HEREBY RESOLVED by the Water, Light, Power and Building Commission of the City of East Grand Forks, Minnesota, that the following shall consist of the

Standby Power Rate:

This offering is subject to the general terms and conditions of the existing Standby Power Contract between the Commission and the Company as originally entered into on September 20, 1988. It is also subject to the terms and conditions of the existing contract between the Western Area Power Administration and the Commission and the current contract between the Minnesota Municipal Power Agency (MMPA) and the Commission.

 

Standby Power Supply:              Standby power for partial or complete failure of generation of American Crystal Sugar                                              during the 12 month period of January through December.

Scheduled Outage Supply:         Energy for scheduled maintenance outages during January through May and October       through December is only available at the option of MMPA. This would require advance       request from the Company through the Commission to determine availability for a    period of time acceptable to MMPA and the Commission.

 

Reserved Standby Demand Quantity:

                                                7500 kW (adjusted for losses as specified in the contract) for January through May and                                           September through December

 

                                                3,500 kW (adjusted for losses as specified in the contract) for June, July, and August

 

Actual Standby Demand Quantity:

                                                The actual output of American Crystal Sugar generation for the clock hour preceding                                               the failure of American Crystal Sugar generation. 

 

                                                This quantity shall be adjusted for distribution and transmission losses as specified in                                             the contract.

 

                                                Metering of the actual generator output will be furnished and installed by the                                                           Commission with costs borne by the Company as covered in the contract.

 

Delivery Point(s):                        At Commission’s interconnection points with the Company electrical switchgear as       defined and updated in the attached drawing.

 

 

 

Standby Capacity Reservation Demand Charge:

 

This charge shall be based on the rate currently in effect from the Commission’s wholesale supplier who is furnishing the standby power to the Commission.

 

For the period beginning May 1, 2005 and continuing throughout the duration of the East Grand Forks power supply agreement with MMPA unless and until modified by MMPA, the following Service Schedule applies.

 

                                                June-September                         October-May

                                                $ 3.00 per kW - month                                 None

 

This charge will be billed monthly as a fixed charge. The amount will be determined by multiplying the Reserved Standby Demand Quantity for that month (as adjusted for then current distribution and transmission losses) by the above rate per kW-month reserved. Transmission losses will be as determined by the transmission system over which the standby is to be supplied.

For example, 3,500 kW reserved for June 2000 at $3.00 per kW month is:

  (3,500 kW reserved) X ( 1.02) X (1.062) X $ 3.00 per kW-mo. = $ 11,374.02

 

Where               1.02 is the multiplier for East Grand Forks distribution losses

 

and where         1.062 is the multiplier for transmission losses for service provided over the WAPA transmission system                    to Industrial Park substation

 

and where         $3.00 per kW-month is the Standby Capacity Reservation Demand Charge

 

 

Actual Demand Charge: This demand charge will apply only when Standby Power is furnished and will apply to the standby demand used during that monthly billing period. The Firm Demand Charge for that month from the Commission’s Standby Supplier will be multiplied by the Actual Standby Demand Quantity furnished as adjusted for losses. This will be reduced by the amount paid for that same month for Standby Capacity Reservation Demand Charge.

 


Standby Energy Charge: If American Crystal Sugar’s generation experiences a forced outage, energy will be provided at the market rates in effect during the outage. However, in no event will the energy charge be less than the Commission’s firm supplemental energy rate. In all cases the city franchise fee will apply to energy supplied.                          

 

Voting Aye:  Ogden, Gregoire, Quirk, Vetter

Voting Nay:  None

The President declared the resolution passed      

 

It was moved by Commissioner Gregoire second by Commissioner Quirk that the meeting be adjourned to a closed meeting to discuss negotiation strategies.

Voting Aye:  Ogden, Gregoire, Quirk, Vetter

Voting Nay:  None

 

 

                                                                                                            Bonnie Abel

                                                                                                            Sec'y