06-08-2010 ERMU MINELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
June 8, 2010
Members Present: John Dietz, President; Jerry Gumphrey, Vice Chair;
Daryl Thompson, Trustee
ERMU Staff Present: Troy Adams, Director of Operations;
Theresa Slominski, Finance Director/Office Manager;
Mark Fuchs, Line Superintendent;
David Berg, Water Superintendent;
Wade Lovelette, Technical Services Superintendent;
Judy McSpadden, Recording Clerk
City Staff Present: Lori Johnson, City Admhustrator
Others Present: Peter Beck, Attorney from Gray Plant Mooty Law Firm
1.1 Call meeting to order June 8, 2010
John Dietz called the June 8, 2010 meeting to order at 3:30 p.m.
2.1 Consider Utilities Agenda
Daryl Thompson moved to approve the June 8, 2010 Utilities Agenda. Jerry Gumphrey
seconded the motion. Motion carried 3-0.
3.1 Consider Consent Agenda
John Dietz had questions on the check register and financials, staff responded.
Jerry Gumphrey moved to approve the Consent Agenda as follows:
a. May Check Register
b. May 11, 2010 Minutes
c. Financial Reports
Daryl Thompson seconded the motion. Motion carried 3-0.
4.1 Power Suonly Options /Resource Planning Update
In Apri12010, the Utilities Commission authorized ERMU to enter into "Phase 1" of a Resource
Planning Study with a coalition which includes Central Minnesota Municipal Power Agency
(CMMPA) as a participant. The Resource Planning Coalition held a conference call on May 24,
2010. During this call, the approval of the Resource Planning Coalition Confidentiality Agreement
was delayed to allow for the participants to conduct independent legal reviews. Also determined
during this call were the participants representatives which will serve on the Resource Planning
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Regulaz meeting of the Elk River Municipal Utilities Commission
June 8, 2010
Coalition Committee. The next scheduled meeting is June 7, 2010. Discussion followed regazding
future power supply options.
4.2 Well Drilline Ordinance
David Berg recently spoke with Senator Mike Jungbauer regarding residential irrigation, water
waste, and water conservation. He is a promoter of water conservation as he has experience with
water and wastewater topics. Senator Jungbauer has set up a meeting for Wednesday, June 16, 2010,
at the State Capital with the DNR, Bill Bronder of Sherburne County Soil & Water, Bruce Olson of
MN Department of Health, David Berg, and Troy Adams. The discussion will be about stopping
future irrigation well drilling within ERMU's water system to reduce excessive water waste and
prevent the possibility of aquifer contamination. David Berg informed the Commission that an
association on ERMU's water system has recently drilled their own irrigation well. Peter Beck asked
if they had a pemut. David Berg responded that the DNR has not issued one as of yet but the well
driller is expecting one. Discussion followed. Staffwas directed to send a letter to the association
involved voicing ERMU's concerns. Peter Beck informed Commissioners that a consultant from Barr
Engineering was familiar with ERMU's circumstances and would be available to pursue the issue of a
well drilling ordinance.
Jerry Gumphrey moved to hire Barr Engineering to help ERMU with the water issue. Daryl
Thompson seconded the motion. Motion carried 3-0.
5.1 Review and Consider Capital Equipment Purchases
The 2010 budget contains a $55,000 line item to replace the 1996 F700 Ford dump truck and a
$38,000 line item to replace the 2002 Vactron. Discussion followed regazding the possibility of
keeping the dump truck and not trading it in. Mark Fuchs responded that it needed a lot of work and
wasn't worth keeping.
Daryl Thompson moved to approve the purchase of a new 2011 F500 Ford dump truck with
dump bed and chipper bog with trade-in, and a 2011 Vactron with trade-in. Jerry Gumphrey
seconded the motion. Motion carried 3-0.
5.2 Review and Consider Bids for lg` & 2"a Street Rebuild Project
On June 2, 2010, bids were opened for contracted underground electrical work on the 1 s` and 2"a
Street rebuild project. Staff recommends awarding to the lowest responsive bidder.
Jerry Gumphrey moved to award the contract for the 1" and 2"d Street rebuild project to
Midwest Diversified Utilities, the lowest responsive bidder. Daryl Thompson seconded the
motion. Motion carried 3-0.
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Regulaz meeting of the Elk River Municipal Utilities Commission
June 8, 2010
5.3 Review Annual URGE Test Results
ERMU operates and maintains four diesel generation units at its power plant. These units are
contracted to GRE through a Power Transaction Agreement at the current price of $2.75/kw/month
based upon the proven capacity from the annual URGE test. The current contract expired October 31,
2005 but was extended on an "evergreen" basis. This allows the contract to extend the termination
date on an annual basis unless notice is given by either ERMU or GRE no later than April 1 s` of that
year. Discussion followed regarding the past URGE tests compared to this yeaz. Over the past years,
the URGE test results have steadily increased. This is due to the maintenance, training, and familiarity
with the plant. ERMU staff did a great job performing this URGE test. The capacity results from this
test will result in $352,440 in annual payments from GRE. John Dietz stated he would like to
commend the employees involved in the operation and maintenance of the diesel generation units.
6.1 Staff Uadates
Troy Adams stated the City of Elk River is looking at visioning and goals. The department
heads would like to hire a third party to come in and help facilitate this process. Troy asked
Commissioners for approval to participate in this at an estimated cost of azound $2000. Consensus of
the Commissioners was this was a good idea and to proceed with the City of Elk River. Troy Adams
also gave an update on the LFG plant and the status of Connexus territory acquisitions.
Theresa Slominski reported the credit cazd system called Paymentus is fmally up and Winning.
David Berg stated the water meter replacement program is going so well the budgeted amount
has been depleted. The In and 2"d Street project budgeted $60,000 for 2010 and this has been put off.
He asked Commissioners approval to move the $60,000 over to the water meter account.
Daryl Thompson moved to approve moving the $60,000 budgeted for the 19` and 2"d Street
project to the water meter account. Jerry Gumphrey seconded the motion. Motion carried 3-0.
John Dietz asked about the status of future replacement for the special projects that consultant
Vance Zehringer oversees now. Troy Adams said he would like to hire someone for Vance to train,
but stated he would like to hire them as an ERMU employee and not a consultant. Troy stated this
would be a full time job. Commission directed staffto compile a list of duties and bring back to a
future meeting for review.
Daryl Thompson commended ERMU staff on a great clean-up job on the Watson Street project.
John Dietz wanted to commend staff on how well they work with the City of Elk River. Mazk Fuchs
said they have been helping each other out and Phil Hals has helped out a lot.
Lori Johnson informed Commissioners of the upcoming assessments for the Main Street
Improvement project.
6.2 Set Date for Next Meetin¢
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, July 13, 2010, at 3:30 p.m.
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Regulaz meeting of the Elk River Municipal Utilities Commission
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6.3 Adjourn Re¢ular Meetine
Daryl Thompson moved to adjourn the regular meeting of the Elk River Municipal
Utilities Commission meeting at 4:40 p.m. Jerry Gumphrey seconded the motion. Motion
carried 3-0.
Minutes prepared by Judy McSpadden.
J D' tz
President, ERMU Comxy~ssion
j~ ~.
-1
Tina Allazd
City Clerk