06 12 2011 ERMU MINELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
June 14, 2011
Members Present: John Dietz, President; Daryl Thompson, Vice Chair; Al Nadeau, Tnistee
ERMU Staff Present: Troy Adams, Director of Operations;
Theresa Slominski, Finance Director/Office Manager;
Mark Fuchs, Line Superintendent;
Wade Lovelette, Technical Services Superintendent;
Judy McSpadden, Recording Clerk
ERMU Staff Absent: David Berg, Water Superintendent
City Staff Present: Rebecca Haug, Environmental Administrator
Others Present: Peter Beck, Attorney from Gray Plant Mooty Law Firm
Lance Lindberg and Steve Rohlf from the Heritage Preservation Commission
1.1 Call meeting to order June 14, 2011
John Dietz called the June 14, 2011 meeting to order at 3:30 p.m.
2.1 Consider Utilities Agenda
John Dietz commented that 5.1 Joint Meeting with the Heritage Commission to discuss the
Jackson Street Water Tower could be moved up when they were ready.
Daryl Thompson moved to approve the June 14, 2011 Utilities Agenda. AI Nadeau seconded
the motion. Motion carried 3-0.
3.1 Consider Consent Agenda
John Dietz had questions on the check register, staff responded.
Daryl Thompson moved to approve the Consent Agenda as follows:
a. May Check Register
b. May 10, 2011 Regular Meeting Minutes
c. Financial Reports
AI Nadeau seconded the motion. Motion carried 3-0.
4.1 Review of City Ordinance 7&51 WATER USE RESTRICTIONS and Elk River
Municiaal Utilities' 2009 RESOLUTION IMPOSING WATER USE RESTRICTIONS
WITHIN THE CITY OF ELK RIVER
Page 2
Regulaz meeting of the Elk River Municipal Utilities Commission
June 14, 2011
In July 2009, as authorized under the City of Elk River Ordinance Section 78-51, the ERMU
Commission adopted a resolution imposing water restrictions. Past discussions on this issue related to
whether or not to impose the water restriction to all water users within the Elk River urban service
district. Discussion followed regarding customers with their own private well. John Dietz
recommends not trying to control a sprinkling ban outside of the urban service district. Consensus
was to not control private wells.
Daryl Thompson moved to keep the odd /even sprinkling ban for urban water service district
and to encourage customers with private wells to follow. AI Nadeau seconded the motion.
Motion carried 3-0.
Jolm Dietz directed Peter Beck to draft a new Resolution regarding the sprinkling ban.
4.2 Uadate on Power Suaaly Options /Resource Plannin¢
Troy Adams gave an update of the talks with CMMPA and Connexus that have happened since
the last Commission meeting. At the May 10, 2011 ERMU Commission meeting, authorization was
given to enter into "Phase 2b" of the Resource Planning Study which will include risk assessment of
the proposals. As previously discussed with the ERMU Commission, the power contract renewal bid
proposed by Connexus and/or GRE will be compared with the results from the Request for proposal
process. This comparison will be conducted by a third party, R.W. Beck. On June 9, 2011, ERMU,
Connexus, GRE, and R.W. Beck held a meeting to discuss methods for comparison. John Dietz asked
what the cost of this study would be. Troy Adams said he did not have a proposal at this time but
would come back with the cost prior to authorization of the study. Troy Adams asked if one of the
Commissioners could attend an upcoming meeting with CMMPA. Al Nadeau volunteered.
4.3 Update on CAPX2020 Brookines /Twin Cities Transmission Project
Troy Adams updated the Commission on the occurrences of the past month with the
CAPX2020 Brookings project. A participant has requested to be released from this project. Six
Utilities have expressed interest in buying their share. Tmy Adams said there is enough room to buy
into this without going over the allotted amount and asked for the Commissioners' approval to move
forwazd.
AI Nadeau moved to pursue the purchase of Delano's share contingent upon legal counsel.
Daryl Thompson seconded the motion. Motion carried 3-0.
Page 3
Regular meeting of the Ells River Municipal Utilities Commission
June 14, 2011
4.4 Update on 2011 Purchase of a Directional Bore Rie
Mazk Fuchs discussed the operations and benefits of the new bore rig that was delivered in May.
Two employees have been trained to work the machine. Vermeer has also been out to assist and train
in the field. Discussion followed regazding the benefits of having this machinery in place. No action
taken.
5.1 Joint Meetine with the Herita¢e Preservation Commission to Discuss the Jackson Street
Water Tower
Rebecca Haug, the Environmental Administrator for the City of Elk River, discussed the status
of putting the Jackson Strcet Water Tower on the National Register. Discussion followed regarding
the cost of maintaining the tower, the funds ERMU set aside for demolition, and the avenues available
for funding the towers expenses now and in the future. Troy Adams stated that the cost to repair and
paint the tower is approximately $400,000. Troy Adams also stated he does not think the ERMU
water customers should be solely burdened with additional fees to save the tower. Steve Rohlf asked
for approval to apply for grants and also stated he understands that if the cost is extreme and funds
cannot be raised, the tower would not be saved. John Dietz said to go ahead and check on the grants
available. John Dietz then asked Peter Beck if the City could purchase the tower after it was on the
National Register. Given the mission of the City of Elk River is more in line with ownership of a
historical asset, versus the utility mission of ownership of functioning assets, Peter Beck said he didn't
think it would be an issue. Rebecca Haug asked for permission to post flyers to save the water tower.
Consensus of the Commission was it was a great idea.
5.2 Review and Consider Proposed Utilities Oganizational Restructurine
In Apri12009, the Utilities underwent organizational restructuring. At that time the supervisory
and advisory responsibilities for the Water Superintendent were assigned to the Public Works Director
for the City of Elk River. In early 2010, the Public Works Director resigned and the City of Elk River
decided not to fill the position at that time. Troy Adams discussed the benefits of bringing the Water
Department back in house. Troy Adams also requested a change in title due to the wnfusion of his
current job title in the industry. Discussion followed.
Daryl Thompson moved to change Troy Adams job title to Utilities Director until Apri12012,
and adopt the new staff organizational chart with the Water Department being under the
Utilities Director with a probationary period thru April 2012. Al Nadeau seconded the motion.
Motion carried 3-0.
Page 4
Regulaz meeting of the Elk River Municipal Utilities Comrission
June 14, 2011
5.3 Review 2010 Annual URGE Test Results
Wade Lovelette reported ERMU operates and maintains four diesel generation units at the
power plant. These units are contracted to Great River Energy (GRE) through a Power Transaction
Agreement at the current price of $2.75/kW/month based upon the proven capacity from the annual
Uniform Rating of Generating Equipment (URGE) test. The 2011 URGE test went well and will
result in $352,968 compensation from GRE over the next yeaz. The slats have shown an increase in
perfomiattce every yeaz since at least 2005. This trend is directly related to a high priority in
maintenance, training, and staff familiarity with the plant. The staff consisting of Steve Ziemer,
Michael Price, and Adam Freiberg do an excellent job. John Dietz asked staffto tell the guys they are
doing a great job. Discussion followed regazding the area of coverage and length of time the engines
could be utilized in a time of need. The engines are exercised once a month. Al Nadeau asked when
the next run would be so he could attend. Staff responded.
5.4 Review and Consider Proposed Flexible Benefits Plan Revisions
Theresa Slominski informed the Commission that there were Legislative changes in 2010 due to
health caze reform that affects the ERMU Flexible Benefits Plan Document. This necessitates
revisions that can be addressed through an amendment to the existing plan. The changes affected aze
1) the over the counter drugs and medicines (other than insulin) that will require a prescription for
reimbursement, and 2) in 2013 the maximum reimbursement for the health FSA will be changing
from $3,000 to $2,500. (Staff recommends inwrporating this change now rather than amending the
plan again at a later date.)
Daryl Thompson moved to amend the Flexible Benefits Plan as presented. AI Nadeau seconded
the motion. Motion carried 3-0.
6.1 Staff Updates
Troy Adams commented on the recent agreement reached between the City of Elk River and the
Landfill for consideration of future expansion.
Theresa Slominski wanted to recognize employee Michelle Martindale for the completion of her
Leadership Certificate. The Commissioners directed staffto thank her for her commitment.
Troy Adams said David Berg had an item he wanted discussed that pertained to water
connections for homes that are for sale and not hooked up to the ERMU water service. Consensus of
the Commission was that the property should be hooked up to the ERMU water service prior to the
sale of the home.
Page 5
Regulaz meeting of the Elk River Municipal Utilities Commission
June 14, 2011
6.2 Set Date for Next Meetine
The next regulazly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, July 12, 2011, at 3:30 p.m.
6.3 Adjourn Reeular Meetine
AI Nadeau moved to adjourn the regular meeting of the Elk River Municipal Utilities
Commission at 5:05 p.m. Daryl Thompson seconded the motion. Motion carried 3-0.
Minutes prepared by Judy McSpadden.
o i J. Metz
sident, ERMU 'ssion
Tina Allazd
City Clerk