03-19-2013 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
SPECIAL MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
March 19,2013
Members Present: John Dietz, Chair;Al Nadeau,Vice Chair; Daryl Thompson, Trustee
ERMU Staff Present: Troy Adams, General Manager;
Theresa Slominski,Finance and Office Manager;
Mark Fuchs, Line Superintendent; David Berg, Water Superintendent;
Wade Lovelette,Technical Services Superintendent;
Tom Sagstetter, Conservation&Key Accounts Manager;
Jennie Nelson, Executive Administrative Assistant
Others Present: Cal Portner, City Administrator
1.0 CALL MEETING TO ORDER
John Dietz called the March 19,2013 meeting to order at 3:30 p.m.
1.1 Pledge of Allegiance
The Pledge of Allegiance was recited.
1.2 Oath of Office& Election of 2013 Utilities Commission Officers
John Dietz stated his Oath of Office as a Utilities Commissioner.When a new commissioner
starts or an existing commissioner starts a new term,the officer positions can change by election. The
three commissioners discussed the different officer positions.
Daryl Thompson made a motion to elect Al Nadeau as Vice-Chair.John Dietz seconded the
motion. Motion carried 3-0.
Al Nadeau made a motion to elect Daryl Thompson as Trustee.John Dietz seconded the motion.
Motion carried 3-0.
Al Nadeau made a motion to elect John Dietz as Chair.Daryl Thompson seconded the motion.
Motion carried 3-0.
2.0 CONSENT AGENDA(Approved By One Motion)
John Dietz had questions about financials, staff responded.
Daryl Thompson moved to approve the Consent Agenda as follows:
2.1 February Check Register
Page 1
Regular meeting of the Elk River Municipal Utilities Commission
March 19,2013
2.2 February 12,2013 Regular Meeting Minutes
2.3 Financial Statements
2.4 Diesel Power Plant Capacity Agreement Amendment with Great River Energy
2.5 Resolution for Insurance Agent of Record
Al Nadeau seconded the motion. Motion carried 3-0.
3.0 OPEN MIC
No one appeared for open mic.
4.0 OLD BUSINESS
There was no old business.
5.0 NEW BUSINESS
5.1 2012 Annual Report to the Utilities Commission
Troy Adams presented the Commissioners with the 2012 Annual Report booklet. Each
manager gave a rundown of their department's accomplishments.
5.2 Freeport Water Tower Rehabilitation Bids
Included in the 2013 budget is a capital project to paint the Freeport Water Tower. In
January,the Commission awarded the rehabilitation project management and engineering
services bid to Badger State Inspection, LLC/WSB & Associates, Inc. Badger State and WSB
worked with staff to develop the rehabilitation construction documents and the bid opening was
March 15.
The lowest bidder was Odland Protective Coatings. Because of the cold weather, the
spring start date that was bid on might not be realistic. Troy Adams was going to talk with
Odland and see if there is flexibility with the start date. If not, ERMU would have to look at
using the second lowest bidder and painting in the fall.
Al Nadeau motioned to award the Freeport Water Tower Rehabilitation Bid for$625,000
to Odland Protective Coatings pending start date flexibility. Daryl Thompson seconded the
motion. Motion carried 3-0.
5.3 Electric Cable Bids
The underground electric cable required for the 2013 capital construction projects and
maintenance has been determined and the bid opening for that wire was March 18.
Page 2
Regular meeting of the Elk River Municipal Utilities Commission
March 19,2013
Daryl Thompson motioned to award the Wire Cable bid to Wesco, the lowest responsive
bidder, for$154,019.65 Al Nadeau seconded the motion. Motion carried 3-0.
5.4 69KV Substation Transformer Bids
The 2013 budget included an upgrade to the North Substation in the electrical capital
improvement projects. An upgrade to the North Substation has been on the electric distribution
capital projects forecast for the past 5 years. Because of the other projects having higher priority
and then the downturn in the economy and load growth, this upgrade has been postponed. In
2012, the summer load on the North Substation exceeded the operational threshold standards and
load was transferred to be served from other substations for the remainder of the summer. This
upgrade project turned into a top priority for 2013.
The lowest bidder for a 69KV Substation Transformer was MC Sales. Discussion
followed.
Daryl Thompson made a motion to award the 69KV Substation Transformer to MC Sales
for$591,950. Al Nadeau seconded the motion. Motion approved 3-0.
5.5 2013 Minnesota Municipal Utilities Association Legislative Conference
Troy Adams and Theresa Slominski attended the 2013 Minnesota Municipal Utilities
Association Legislative Conference February 13-15. Formed in 1931, Minnesota Municipal
Utilities Association (MMUA) has a mission to "unite and serve as a common voice for
municipal utilities and to provide them with the support they need to be able to improve service
to their customers and community." Although MMUA provides a"common voice" as a joint
action agency representing our concerns and advocating for our needs on the legislative front,
they cannot do it alone. It has become increasingly more important to provide local support in
the form of a united aggregated group as well.
The main topic at this meeting was the current legislative Bill on solar energy. The Bill
would require municipals to compensate solar energy at a retail rate. Discussion followed about
the impact this bill would have on customers and businesses.
5.6 2013 Minnesota Rural Water Association Water & Wastewater Technical
Conference
Minnesota Rural Water Association (MRWA) is a non-profit association governed by a
board of directors comprised of representatives from member water systems. The association's
goals and objectives are to assist communities in providing quality water supply and proper
wastewater treatment to rural areas.
Page 3
Regular meeting of the Elk River Municipal Utilities Commission
March 19,2013
On March 5-7, the 29th Annual MRWA Water and Wastewater Technical Conference
was held in St. Cloud, MN. This conference included training tracks for water, wastewater,
groundwater, and management. Troy Adams, Angela Hauge, and Eric Volk attended this
conference. Discussion followed.
5.7 2013 American Public Power Association Legislative Rally
Troy Adams and Al Nadeau attended the 2013 American Public Power Association
Legislative Rally March 11-13 in Washington D.C. This is an opportunity to take the stories
from Main Street Elk River and Minnesota directly to our elected officials with the aggregate
support of municipal public power. During this rally's Legislative and Resolutions Committee,
ERMU has the opportunity to vote on APPA's policy on legislation, regulation, and other federal
issues.
The main topics at this year's rally were tax-exempt financing and captive rail.
Discussion followed on the impact these issues would have on our customers and businesses.
Troy Adams stressed how important it is for municipal utilities to be at these events lobbying for
our customers.
6.0 OTHER BUSINESS
John Dietz requested an analysis of advertising to be reported back to the Commission.
He requested to have security advertising shown separately from the other advertising.
6.1 Staff Updates
Tom Sagstetter verbally added to his staff update by updating the Commission on the Landfill
to Gas plant expansion. Recent conversations about the expansion have been very positive. Everyone
involved is on board with getting as much electricity as possible from the gas engines. Waste
Management is concerned that the Environmental Protection Agency will limit how much garbage
intake there can be therefore there will be fewer gasses, but nothing has been decided yet.
6.2 Set Date for Next Meeting
The next regularly scheduled Commission meeting will be on April 9, 2013.
The Commission recessed the regular meeting at 4:29 p.m.
6.3 Closing of Meeting: "Meeting to be closed pursuant to MN Statute 13D.05, Subd.
3(c)(3) to develop or consider offers or counteroffers for the purchase or sale of real
or personal property."
a. Call Closed Session to Order
b. Discussion
Page 4
Regular meeting of the Elk River Municipal Utilities Commission
March 19,2013
c. Adjourn Closed Session
6.4 Adjourn Regular Meeting
Daryl Thompson moved to adjourn the regular meeting of the Elk River Municipal
Utilities Commission at 4:35 p.m. Al Nadeau seconded the motion. Motion carried 3-0.
Minutes prepared by Jennie Nelson.
J/ J. etz V
hair, ERMU Co issio
Tina Allard
City Clerk
Page 5
Regular meeting of the Elk River Municipal Utilities Commission
March 19,2013