11-16-2010 ERMU MINELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
November 16, 2010
Members Present: John Dietz, President; Daryl Thompson, Trustee
Member Absent: Jerry Gumphrey, Vice Chair
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; Art Gatchell, Electric Lead Lineman
City Staff Present: Lori Johnson, City Administrator
Others Present: Peter Beck, Attorney from Gray Plant Mooty Law Finn
1.1 Call meetine to order November 16, 2010
John Dietz called the November 16, 2010 meeting to order at 3:30 p.m.
2.1 Consider Utilities Agenda
Troy Adams asked for the deletion of 6.3 and 6.4 of the Agenda.
Daryl Thompson moved to approve the revised November 16, 2010 Utilities Agenda. John
Dietz seconded the motion. Motion carried 2-0.
3.1 Consider Consent Agenda
Daryl Thompson and John Dietz had questions on the check register and financials, staff
responded.
Daryl Thompson moved to approve the Consent Agenda as follows:
a. October Check Register
b. October 12, 2010 Minutes
c. Financial Reports
d. Resolution for the Bank of Elk River
John Dietz seconded the motion. Mofion carried 2-0.
Page 2
Regulaz meeting of the Elk River Municipal Utilities Commission
November 16, 2010
4.1 Review City Ordinance 78-51 WATER USE RESTRICTIONS and Ordinance 78-26
PRIVATE WELLS FOR DOMESTIC USE
John Dietz commented on the sprinkling ordinance saying the intentions of the Elk River
Municipal Utilities Commission were good but he feels there should have been more consideration on
public opinion. The proposed Ordinance for Water use Restrictions for private wells was denied by
the City Council. John Dietz went onto say he felt the Ordinance for Water Use Restrictions was
rushed and should have been made cleaz prior to City Council consideration. John Dietz questioned
David Berg if the watering ban for ERMU water customers was necessary or if it should be
discontinued. Daryl Thompson asked David Berg if surrounding communities have a watering ban.
David Berg responded yes, by having a watering ban that is based on odd and even watering it
averages out the usage so the water usage is consistent. John Dietz directed David Berg to bring this
back to the Commission for further review at the December meeting.
The other Ordinance brought to the City council was Section 78-26 Prohibiting Private Wells
for Domestic Use on Properties within the City served by the City Water System. John Dietz said the
City Council passed the Ordinance 4-1 but felt the City Council would like the Commission to review
again. He would like to gather additional information for their review. The top 20 water use
customers are over 10% of the water business. John Dietz asked if other Cities have this type of
Ordinance, David Berg responded other Cities are working on this type of Ordinance. John Dietz read
part of a letter received from Minnesota League of Cities regarding private wells in City Water
boundaries. Discussion followed. A couple of private citizens spoke up regazding their opinions of
this Ordinance, one being a homeowner and one a commercial user. Peter Beck discussed the
information received from Minnesota Department of Health and League of Minnesota Cities, working
towazd a model ordinance. More discussion followed. John Dietz commented on the debt that
ERMU has because of the infrastructure that was put in place to support the high demand for water
and if the 20 highest water users drilled their own well how would ERMU support their water system?
John Dietz asked Lori Johnson if Tim Simon could run the water model calculation on a $250,000
loss of revenue in the water department and how much the rates would have to be increased due to
that loss. This issue will be revisited at the December meeting.
4.2 Power Supply Oations /Resource Plannin¢ Update
Troy Adams updated the Commissioners on the activity that has taken place since the last
meeting. No action required at this time.
4.3 2011 Exaense Bud¢et and Rate Anatvsis Update
Staff continues to work on the budget. GRE doesn't expect to have final rates until eazly
December but they are providing updated numbers as they work through their process. ERMU is
anticipating an approximate 4% electric wholesale increase from GRE. GRE has indicated they may
Page 3
Regular meeting of the Elk River Municipal Utilities Commission
November 16, 2010
not be eliminating their Conservation Improvement Program rebates. The final numbers should be
available in early December. No action required at this time.
5.1 Review 2011 WaEe Proposal
The process for annual wage increase proposals is handled over two separate commission
meetings. During the first meeting, management provides industry comparisons, economic trends,
and the financial impact to the Utilities. Employees also have the opportunity to address the
commission. After the commission has collected or requested the information needed for their
decision, the topic is tabled until the following utility commission meeting at which the
will make their decision.
Troy Adams reviewed the surveyed information and is proposing a 3.06% wage increase for 2011.
Electric lineman, Art Gatchell, addressed the commission with a request from the employees for
Storm Pay when assisting other utilities. This consists of time and one half (double time on Sunday)
for employees assigned to work on another distribution system to assist with restoration following a
storm.
John Dietz asked Troy Adams to supply a benefit comparison for next month's meeting.
5.2 Review Visionine and Goals
Lori Johnson thanked the commissioners for allowing staff to participate in Elk River's Vision
and Goals. She went on to explain the adopted Elk River's Vision and Goals. Future meetings are
planned to develop and achieve these goals.
5.3 Review and Consider Water Treatment Chemical Bids
On November 15, 2010, bids were opened for water treatment chemicals. Staff recommends
awarding the bid to Hawkins, Inc., the lowest responsive bidder.
Daryl Thompson moved to award the water treatment chemical bid for 2011 to Hawkins, Inc.
John Dietz seconded the mofion. Motion carried 2-0.
5.4 Review and Consider Water Assessments
A listing of proposed water assessments for customers with outstanding balances that still
remains unpaid was reviewed. Due to the timing of the City Council meeting, the proposed listing
was already approved by the City Council.
Daryl Thompson moved to agree that the assessments were correct. John Dietz seconded the
motion. Motion carried 2-0.
Page 4
Regular meeting of the Elk River Municipal Utilities Commission
November 16, 2010
6.1 Staff Uadates
Troy Adams discussed the upcoming APPA rally and the CMMPA annual meeting.
John Dietz asked Theresa Slominski when customers will be notified that there will be no
transaction fee for credit card payments. Theresa Slominski replied the notice will be on the bills
going out the end of November for December payments.
David Berg informed the Commission of the Source Water Protection grant that was recently
awarded that will help with the wellhead protection plan. David Berg commented he felt it was time
to hire an additional water operator. The water department is busy and staff hasn't had the time for the
necessary maintenance issues. John Dietz directed David Berg to bring the request to the December
ERMU Commission meeting with cost analysis.
6.2 Set Date for Next Meetine
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, December 14, 2010 at 3:30 p.m.
6.3 A_dlourn ReHUlar Meetin¢
John Dietz moved to adjourn the regular meefing of the Elk River Municipal Utilities
Commission meeting at 5:30 p.m. Daryl Thompson seconded the motion. Motion carried 2-0.
Minutes prepazed by Judy McSpadden.
hn Die
President, ERMU Commission
Tina Allard
City Clerk