06-11-2013 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
June 11,2013
Members Present: John Dietz, 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; Peter Beck, Attorney
1.0 CALL MEETING TO ORDER
John Dietz called the June 11,2013 meeting to order at 3:30 p.m.
1.1 Pledge of Allegiance
The Pledge of Allegiance was recited.
1.2 Consider Utilities Agenda
Troy Adams requested to move agenda item 5.3 to the top of New Business.
Daryl Thompson moved to approve the amended June 11,2013 Utilities agenda.John Dietz
seconded the motion. Motion carried 2-0.
2.0 CONSENT AGENDA(Approved By One Motion)
Daryl Thompson moved to approve the Consent Agenda as follows:
2.1 May Check Register
2.2 May 14,2013 Previous Meeting Minutes
2.3 Financial Statements
2.4 Bond Retirement
2.5 Minnesota Pay Equity Compliance
2.6 Annual Water Quality Report
2.7 Resolution Not to Waive Statutory Tort Limits for Liability Insurance
2.8 Executed Minnesota Municipal Power Agency Membership Documents
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Regular meeting of the Elk River Municipal Utilities Commission
June 11,2013
John Dietz seconded the motion. Motion carried 2-0.
3.0 OPEN MIC
Joseph Steffel, Buffalo Utilities Director, on behalf of all the agency members, welcomed
ERMU to the Minnesota Municipal Power Agency.
5.3 District 30A House Representative Nick Zerwas Legislative Update
Representative Nick Zerwas gave an update to the Commission about the recent legislative
session. Although he is on the Health&Human Services Committee, he is still very knowledgeable
about other Bills. He briefly discussed some of the Bills that could affect ERMU with emphasis on the
solar energy Bill. Representative Zerwas was a huge advocate for ERMU and municipal utilities
throughout this session and management and the commission thanked him for his support.
4.0 OLD BUSINESS
There was no old business.
5.0 NEW BUSINESS
5.1 2012 Year-End Reserve Balances
Theresa Slominski presented the 2012 Year-End Reserve Balances for the Electric and
Water departments. Discussion followed. The Electric department's Unrestricted Reserves will
be designated as working capital for PCAs, territory acquisition, and purchased power contract.
The Water department's Unrestricted Reserves will be designated for the Freeport Water Tower
reconditioning and future infrastructure projects.
It was asked of David Berg if the possibility of a summer water rate is still being
considered because of the wet spring/summer we have had thus far and the minimal water usage.
He will compile some financial information for the July meeting.
John Dietz requested that some explanation be added to the bottom of the spreadsheet as
to what the reserves are designated for. This will be brought back at the July meeting.
5.2 Water Availability Charge (WAC) Program
At the June 3`a City Council meeting,the Council adopted Ordinance 13-13,which created a
"look back"option for calculating the Service Availability Charge(SAC)for sewer connections. The
ordinance is similar to what the City of Otsego uses. The City also adopted a flexible SAC financing
option based on their 2012 Ordinance 12-17 which allowed for costs associated with connections to
city service be paid as a special assessment.
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Regular meeting of the Elk River Municipal Utilities Commission
June 11, 2013
In ERMU's Policy 5.0—Water Rules,the Water Availability Charge(WAC)is determined by
the City's calculation of SAC units. The logic behind that is typically water in=water out so it is a
good justification to follow the City's calculations. Staff recommended that ERMU follow in step
with the City on the"look back"option for the WAC charges. Discussion followed.
Daryl Thompson made a motion to approve the change to ERMU's Water Rules.John Dietz
seconded the motion.Motion carried 2-0.
6.0 OTHER BUSINESS
John Dietz noted an article that he had come across about Anoka Municipal Utility's rate
increase starting July 1. There had not been a rate increase since 2009, but will now increase by
8.5% within a two-phase process.
6.1 Staff Updates
Troy Adams talked about a water main issue on Fillmore Ave. in the Kliever Lake Fields
addition. The developer of this project is looking to build single family homes instead of more
townhomes, which is what the development was platted for, so a change will have to be made to our
water main. The ideal option would be looping the water mains so there would be no stagnant water,
but there is concern over cost. We worked out an option that the water main under all of the
townhome private drives will be turned over to the homeowners association to maintain. This issue is
currently with the planning commission and ERMU will follow suit with their decision.
Troy Adams also mentioned that the Water Department is looking to make a Private Hydrant
program for those businesses/associations that own water hydrants. To the general public, it probably
looks as though ERMU owns all the hydrants in Elk River,however there are several that are private.
ERMU has been providing maintenance to these hydrants at no cost,but is looking to bring back a
maintenance fee program to recoup costs and for liability reasons. This will be brought to the July
meeting.
Another addition to Troy Adams' staff update is to compile an on-call procedure for the plant
engines. We could be called to run our engines at any time so there needs to be an on-call procedure
for that.
Lastly, Troy Adams' was asked to consult the commission on purchasing the time and
temperature sign at the Elk River Lutheran Church. The church does not have the funds to continue
running the sign so they are looking to see if the Utilities wanted to purchase the sign and run it for
residents. The commission did not think that it would be a good investment for ERMU.
Theresa Slominski wanted to forewarn the commission that ERMU needs to look at new
billing software and it could be a large investment at budget time.
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Regular meeting of the Elk River Municipal Utilities Commission
June 11,2013
Cal Portlier wanted to mention that Peter Beck will stay the City of Elk River's attorney.
6.2 Set Date for Next Meeting
The next regularly scheduled Commission meeting will be cancelled due to scheduling conflicts
and a special meeting will be held on July 2, 2013.
The Commission recessed the regular meeting at 4:52 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
c. Adjourn Closed Session
6.4 Closing of Meeting: "Meeting to be Closed pursuant to MN Statute 13D.05, Subd.
3(a) for Employee Performance Evaluation"
d. Call Closed Session to Order
e. Discussion
f. Adjourn Closed Session
6.5 Adjourn Regular Meeting
Daryl Thompson moved to adjourn the regular meeting of the Elk River Municipal
Utilities Commission at 5:24 p.m. John Dietz seconded the motion. Motion carried 2-0.
Minutes prepared by Jennie Nelson.
•
J4 J. tietz
C air,ERMU Commi n
Tina Allard
City Clerk
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Regular meeting of the Elk River Municipal Utilities Commission
June 11,2013