01-08-2013 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
January 8,2013
Members Present: John Dietz,Chair; Daryl Thompson,Vice Chair;Al Nadeau,Trustee
ERMU Staff Present: Troy Adams,General Manager;
Theresa Slominsld,Finance and Office Manager;
Mark Fuchs, Line Superintendent;David Berg, Water Superintendent;
Wade Lovelette,Technical Services Superintendent;
Tom Sagstetter,Conservation&Key Accounts Manager;
Judy McSpadden,Recording Clerk
Others Present: Cal Poriner,City Administrator; Peter Beck,Attorney
1.0 CALL MEETING TO ORDER
John Dietz called the January 8,2013 meeting to order at 3:30 p.m.
1.1 Pledge of Allegiance
The Pledge of Allegiance was recited.
1.2 Consider Utilities Agenda
Daryl Thompson moved to approve the amended January 8,2013 Utilities Agenda. Al
Nadeau seconded the motion. Motion carried 3-0.
2.0 CONSENT AGENDA(Approved By One Motion)
John Dietz had questions, staff responded.
Daryl Thompson moved to approve the Consent Agenda as follows:
2.1 December Check Register
2.2 December 12,2012 Regular Meeting Minutes
2.3 Financial Statements
2.4 2013 Official Depository Designation
2.5 2013 Official Newspaper Designation
2.6 2013 Regular Utilities Commission Meeting Schedule
2.7 2013 Tariffs
2.8 Approve Request for proposals Insurance Agent of Record Services
2.9 2013 Tri-County Action Program Services Agreement
Al Nadeau seconded the motion. Motion carried 3-0.
Page 2
Regular meeting of the Elk River Municipal Utilities Commission
January 8, 2013
3.0 OPEN MIC
No one appeared for open mic.
4.0 OLD BUSINESS
4.1 Wellhead Protection Plan Amendment Approval for Re-Submission
The revised Wellhead Protection Plan(WHP)to meet the Minnesota Department of Health's
recent critiques of ERMU's submission was reviewed. A few of the changes were adjusted to address
Well#5's moderate vulnerability,more specifically with education for potential hazard properties
around Well#5's vulnerability zone. Overall,not much was changed, but a few clarifying statements
were inserted to meet standards and a couple adjustments to actions items were necessary to meet
requirements.
Daryl Thompson moved to approve the amended Wellhead Protection Plan. Al Nadeau
seconded the motion. Motion carried 3-0.
4.2 Purchase of Property 1627 Main Street(Parcel ID#75-411-0240
At the August 2012 ERMU Commission meeting,the Commission authorized staff to contact
the owner of 1627 Main Street NW(Parcel ID#75-411-0240)regarding the purchase of that property.
This property is north of ERMU's field services building. Because of this property's location,it
would be desirable for ERMU to acquire for future expansion, storage,or parking needs. This
property is not listed for sale at this time but the owner in interested in selling to ERMU. Troy Adams
relayed to the Commission the conversations he has had with the owner of the property. The tentative
purchase amount and purchase agreement were discussed.
Daryl Thompson moved to authorize Troy Adams to negotiate with the owner at 1627 Main
Street NW(Parcel ID#75-411-0240)a price of$160,500 and to include the cost of a title search
and recording fee. Al Nadeau seconded the motion. Motion carried 3-0.
5.0 NEW BUSINESS
5.1 Longevity Pay
The wage and benefits committee considered the idea of longevity pay. The committee
submitted this idea to the Commission for discussion at the December 2012 ERMU Commission
meeting. The Commission directed staff to bring back a longevity pay plan for consideration as soon
as possible.
Staff compiled information to prepare a proposed longevity pay benefit that is comparable to
other Minnesota municipal utilities yet meets the specific needs of ERMU. Minnesota Municipal
Utilities Association(MMUA)conducted a survey of Minnesota municipal utilities on longevity pay
Page 3
Regular meeting of the Elk River Municipal Utilities Commission
January 8,2013
for lineworkers and other employees. Discussion followed regarding the implementation of when to
start the benefit. Al Nadeau felt the longevity pay benefit should begin at 5 years, Daryl Thompson
agreed. Troy Adams discussed the benefit for the lineman versus office staff. John Dietz said he was
only comfortable with the lineman receiving this benefit not office staff. Consensus was to table this
decision until February.
5.2 Review and Consider 4th Quarter Write-Offs
Fourth quarter delinquents compiled of Assessments, Collections,Revenue Recapture and
Write-Offs totaling$52,832.30 were presented for review. Discussion followed. John Dietz directed
staff to bring back a comparison of 2011 versus 2012 Revenue Recapture,Assessments,and Bad
Debts.
Daryl Thompson moved to approve the bad debts as stated. Al Nadeau seconded the motion.
Motion carried 3-0.
5.3 Engineering and Inspection Services for Freeport Water Tower Rehabilitation
Included in the 2013 budget is a capital project to paint the Freeport Water Tower. An RFP was
sent to potential consultants for the engineering,inspection, and construction management for this
project.
Daryl Thompson moved to award the Engineering and Inspection Services for the Freeport
Water Tower to Badger State Inspection,LLC. Al Nadeau seconded the motion. Motion
carried 3-0.
5.4 Electric Distribution System Supervisory Control and Data Acquisition Project
In March of 2012, staff met with United Services Group(USG)to go over Supervisory Control
and Data Acquisition(SCADA)plans for implementation at each of ERMU's substations. This will
give ERMU the capability to monitor and control by a computer,real time data and control of
switching from remote locations. Wade Lovelette gave a presentation of the program and how it
works. No action needed.
5.5 Minnesota Municipal Utilities Association Tom Bovitz Memorial Scholarship
Last year,the ERMU Commission expressed interest in participating in the MMUA Tom
Bovitz Memorial Scholarship. This award program is offered by MMUA to promote public power
and increase goodwill within public power communities. High school seniors that are a customer or
have a legal guardian that is a customer of an MMUA member municipal electric or gas utility would
be eligible. The scholarship is awarded to winning essays per the 2013 MMUA"Tom Bovitz
Page 4
Regular meeting of the Elk River Municipal Utilities Commission
January 8,2013
Memorial Scholarship Award"program guidelines. Because ERMU is a MMUA member,the
eligibility requirements would be the same as MMUA's.
This program is funded by MMUA but requires the local municipal utilities to provide some
administrative work to communicate with the schools and select/submit the local winner to MMUA.
Staff recommends that ERMU provide a$500 scholarship for the local winner submitted to MMUA.
Al Nadeau moved to sponsor the 2013 MMUA"Tom Bovitz Memorial Scholarship Award"
program and provide a$500 ERMU Scholarship annually. Daryl Thompson seconded the
motion. Motion carried 3-0.
5.6 2013 Vehicle Purchases
Approved in the 2013 budget were a bucket truck,dump truck,pick-up,and SUV. The bucket
truck purchase is on hold and will be brought back to the Commission at a future meeting. Midway
Ford was awarded the state bid for 2013. Staff also obtained quotes from the local Ford dealer,
Cornerstone Auto Group. Discussion followed regarding the quotes and convenience of staying local.
Al Nadeau moved to purchase a dump truck,pick-up,and Explorer from Cornerstone Auto
Group. Daryl Thompson seconded the motion. Motion carried 3-0.
6.0 OTHER BUSINESS
6.1 Staff Updates
Troy Adams updated the Commission on the Executive Administrative Assistant position.
Staff is working with the City of Elk River on their 2013 visioning. The MMUA winter legislative
conference is coming up February 13th— 15th at the State Capital. APPA Rally in Washington D.C. is
March 11th— 14th and reservations need to be booked in the near future. Sprint Water Tower
attachment lease agreement has finally been executed. Tom Sagstetter has had really good progress
talking with Waste Management and Sherbume County regarding the LFG expansion.
John Dietz asked Theresa Slominski about the PCA's budgeted for 2012 and 2013.
Mark Fuchs notified the Commission on the newly hired Journeyman Lineman, Darren Weber.
A vehicle recently hit one of ERMU's switchgear by Main Street and Great River Drive. Grant
Orrock recently finished the apprenticeship program and is now officially a Journeyman Lineman.
Consensus of the Commission was to commend him for this.
Peter Beck announced his law office is open for business and recommends a contract in place
with the same terms for ERMU.
David Berg introduced Eric Volk,the new Lead Water Operator.
John Dietz asked for ERMU's help in the event that Elk River would be hosting games for
Hockey Day in 2014.
Page 5
Regular meeting of the Elk River Municipal Utilities Commission
January 8,2013
6.2 Set Date for Next Meeting
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, February 12, 2013, at 3:30 p.m.
6.3 Adjourn Regular Meeting
Daryl Thompson moved to adjourn the regular meeting of the Elk River Municipal
Utilities Commission at 4:50 p.m. Al Nadeau seconded the motion. Motion carried 3-0.
Minutes prepared by Judy McSpadden.
r J. ietz
hair,ETtMU C9 • ion
Tina Allard `J
City Clerk