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4.1. SR 05-19-2003MEMORANDUM Item 4.1 TO: FROM: DATE: Mayor and City Counc~ Pat Klaers, City Ad or May 19, 2003 SUBJECT: Utilities Commission Update Councilmember Dietz is the City Council representative on the Elk River Municipal Utilities Commission. At the May 19, 2003 City Council meeting, John is scheduled to provide the Council with an update on the Utilities activities. Attached for your review are the draft Utilities Commission minutes from the May 13, 2003 meeting. S: ICOUNCIL IPat I Updatesl Utilities.doc MAY-IS-ZOO3 04:11PM FROM-ERMU ?$3-441-809g T-?OZ P.OOZ/O06 F-315 ELK RFVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION May 13, 2003 Members Present: John Dietz, President; James Tralle, Vice Chair; Jerry Takle Staff Present: Bryan Adams, General Manager; Glerm Sundeen, Line Superintendent; David Berg, Water Superintendent; Patricia Hemza, Office Manager Employees Present: Mark Fuchs, Wade Lovelette, Trevor G-wiazdon, Richard Wagner, Betty Belanger, Vivian Schmidt 1. Call meeting to order May 13, 2003 President Jolm Dietz called the May 13, 2003 meeting to order. 2. Consider Utilities Agenda Bryan Adams suggests one additional topic regarding meter reading, to be discussed under Other Business. James Tralle moved to approve the Agenda for May 13, 2003, with one addition. Jerry Takle seconded the motion. Motion carried 3-0. 3. Consider Consent Agenda Staff responded to questions on the Check Register, the CIP report, and the Financials. James Tralle moved to approve ~he Consent Agenda as follows: April Check Register April 8, 2003 Minutes Financials Jerry Talde seconded the motion. Motion carried 3-0. 5.1 Staff Up-dates Glenn Sundeen reported on the progress of various works in progress in Elk River, and Otsego, as well as re-construction areas. He also advised that there is now one crew on services only. John Dietz updated the Commission on the 4~ Street Assessment Hearing, noting that the project will probably move ahead. Dave Berg updated the Commission on the new Water Tower status, the new metering at Well #6, and that Well #2 work will be finished this week. Staff and Commission discussed water conservation. MAY-IS-Z003 04:11PM FROM-ERMU ?~3-441-$0gg T-?OZ P.003/005 F-315 Page 2 Regular meeting of the Elk River Municipal Utilities Commission May 13, 2003 5.2 Review 2002 Water Confidence Report The United States Environmental Protection Agency requires all water utilities to make public, water qaality facts concerning their water, annually. The ERMU 2002 Annual Drinking Water Quality was reviewed, and discussed. The Spring 2003 Connector was also discussed, and reviewed. 5.3 Review & Consider Co Rd 13 Pro|ect Designs for the construction of an underground feeder along County Road 13 have been completed, with plans, and specifications. Staff recommended to the Commission at the April Meeting, to delay County Road 1 construction, and replace it with the County Road 13 project. James Tralle moved to attthorize the delay of the County Road 1 Project, and to proceed with the County Road 13 Project. Jerry Takle seconded the motion. Motion carried 3-0. 5.4 Review Dispersed Generation Program The history of the present dispersed generation program was reviewed. Great River Energy offers a similar program which is volunteer curtailment of load, instead of using a generator to curtail. A Program Description, a Dispersed Generation Program Agreement, currently in use, and a newly created Commercial Intemtptible Load Agreement. Staff responded to questions from the Commission, and recommends approval. James Tralle moved to approve the revised Dispersed Generation Program, using voluntary load curtailment. Jerry Takle seconded the morion. Motion carried 3-0. 5.5 Review Employee Wage Request Bryan Adams reviewed with the Commission the subject of employee compensation that was discussed at the April 2003 Commission Meeting, Salary surveys, operational employee request, a comp worth graph, salary increase options, and insurance information were included. Pat Hemza reviewed insurance, with thc proposal from Principal to become our insurance provider, rather than Delta Dental. The premiums for Principal are considerably less, with thc same benefits. Thc employee deduction of 25% for the pooled total was reviewed. John Dietz discussed the possibility of adding a Vision Plan to employees, that would give the employee, and/or family, discounts up to 50% on glasses, and contacts from participating opticians. Jerry Takle moved to accept the proposal, as stated, from Principal, and to cancel coverage with Delta Dental. James Tralle seconded the motion. Motion carded 3-0. John Dietz spoke on the present policy of employee contributions to health insurance, and also a Vision Plan for employees. The Vision Plan was explained to Commission, that it is a discount oa glasses, and contacts, from 30% to 50%. John Dietz views the plan as very beneficial to employees. MAY-J5-2003 D4:]]PM FROM-ERMU 763-44]-8098 T-TO2 P.004/006 F-315 Page 3 Regular meeting of the Elk River Municipal Utilities Commission May 13, 2003 James Tralle moved to provide Utilities employees with Vision Coverage. motion. After further discussion, James Tralle withdrew his motion. Jerry Talde seconded the John Dietz moved to adjust the employee contribution to their health, and dental to 23% of the actual premium per employee, and to provide each. employee with Vision coverage, at a cost of $10.00 per year, per employee. Jerry Takle seconded the motion. Motion carried 3-0. James Tralle asked about the employer matching funds for a 457K Plan, that the employees have requested. Topics of discussion were tenus, length of employment, and whether or not stipulations would be made. John Dietz explained that he reviewed the issue with the City Council, and that they felt a 457K plan would be inappropriate, and urged that it not be granted. John Dietz also discussed results of his survey, with the one compiled by Staff. John Dietz presented a wage plan as follows: 3.00% to the four managers, and 3.77% to all remaining employees, with no allowance for a 457K Plan. Jerry Takle noted that he was part of a 457K Plan at his employment, and feels the plan is very good, and would like to offer it to the Utilities employees. James Tralle feels the Utility is different from the City, and that the 457K Plan should be awarded. James Tralle moved to issue a 457K Plan to all employees, as follows: 3% of annual wage, to a cap of $2,000.00, and to increase wages for all employees at 3.77%. Jerry Takle seconded the motion. Motion carried 2-1, John Dietz voting nae. James Tralle thanked the attendhag employees for theft presence at the meeting. 6.1 Review Spill Protection Plan Bryan Adams reviewed the new SPCC regulations that require ERMU to revise the current plan, and incorporate the new rules. Adoption of the new plan must be done by August 17, 2004, with implementation by February 18, 2005. Associated Consultants Engineers has revised our plan to satisfy the new rules. Dietz questioned how the plan requirements will actually be done. Bryan Adams responded with possible scenarios for compliance. James Tralle moved to receive, and file the new plata, and authorize the implementation of the plata. Jerry Takle seconded the motion. Motion carried 3-0. MAY-IS-2003 04:11PM FROM-ERMU 763-441-$0~9 T-?O2 P.005/006 F-315 Page 4 Regular meeting of the Elk River Municipal Utilities Commission May 13, 20O3 6.1 Review Electric & Water Financial Pro|ections Bryan Adams reviewed financial projections for electric, and water, explaining his assumptions, and conclusions. The variables, particularly connections, were discussed. 6.2 Review APPA Electric Rate Study Bryan Adams reviewed the APPA Electric Rate Survey with the Commission, explaining the differences in the way entities report their rates. Commission discussed the way rates for Elk River are adjusted to reflect wholesale cost increases. The residential, and commercial rates are very competitive, but we need to keep downward pressure on the demand rate.. 6.3 Review & Consider Well #8 Bryan reviewed the 2003 budget line item for construction of Water Well #8, explaining plans and costs. Discussion centered on water conservation, peak times, growth, and consumption, all subjects that drive construction of water facilities. James Tralle moved to proceed with the Well #8, with Water Revemte Bonds. Jerry Takle seconded the motion. Motion carried 3-0. 6.4Review Parrish Ave. Bridge Ducts The ERMU installed three 5" diameter ducts on the Parrish Avenue Bridge when it was consta-ucted. Two of the ducts are used to carry underground electrical feeders across the river, and the third duct is not used. NorthStar Access has proposed purchasing the un-used duct on the bridge, to avoid having to directional bore under the Mississippi River as a more expensive option. They have proposed a purchase price of $9,000.00, Staff reviewed and explained the reasons for selling the duet. The sale is viewed as positive. Janaes Tralle moved to authorize the sale of one 5" duct on the Parrish Avenue Bridge, price to be negotiated by General Manager. Jerry Takle seconded the motion. Motion carried 3-0. ~AY-I~-2003 04:11P~ FRO~-ER~U ?$3-441-8099 T-?O2 P.006/005 F-31~ Page 5 Regular Meeting of the Elk River Municipal Utilities Commission May 13, 2OO3 Other Business Bryan Adams explained a letter received from Pat McBrady, McBrady Meter Reading. Mr. McBrady has advised that there are approximately 22 meters that cause problems in meter reading every month. He states that he has requested some correction for those problems for years, and that he has been told they would be taken care of, but have not. Bryan Adams stated that some of those meters, particularly the school meters are difficult to gain access to, and we will work with MeBrady Meter Reading to resolve some of these issues. Mr. Adams feels Mr. McBrady should take the good with the bad, and that the radio reads should make up for lost time. Dave Berg explained why two of the meters are not cost effective to change, and that one meter, is a matter of reading when the business is open. James Tralle asked if it would be a breach of contract, if Mr. McBrady refuses to read the meters. Jerry Takle feels that scheduling should rectify the situation. Bryan Adams will work with McBrady Meter Reading to resolve the issue. The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be June 10, 2003. President Dietz adjourned the regular meeting of the Elk River Municipal Utilities Commission at 5:35 PM. Respectfully submitted, Patricia Hemza Office Manager