08-13-2013 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
August 13,2013
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; Peter Beck,Attorney
1.0 CALL MEETING TO ORDER
John Dietz called the August 13, 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
John Dietz had questions about the financials and check register, staff responded.
2.0 CONSENT AGENDA(Approved By One Motion)
Al Nadeau moved to approve the Consent Agenda as follows:
2.1 July Check Register
2.2 July 2,2013 Previous Meeting Minutes
2.3 Financial Statements
2.4 Sick Leave Policy update,per legislative 2013 session
2.5 Service Availability Charge Deferment Policy
Daryl Thompson seconded the motion.Motion carried 3-0
3.0 OPEN MIC
No one appeared for open mic.
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Regular meeting of the Elk River Municipal Utilities Commission
August 13,2013
4.0 OLD BUSINESS
There is no old business.
5.0 NEW BUSINESS
5.1 2014 Budget: Schedule, Travel and Training, Dues/Subscriptions/Fees, Personnel
The Travel and Training budget has less than a 1% increase over the prior year. Staff has
established a schedule for training so all employees would get a more consistent training
opportunity. Discussion followed.
The Dues, Subscriptions, and Fees budget has a 4% increase reflecting various known
and projected increases for 2014. Troy Adams also presented a proposed organizational
chart through the year 2018 as well as a chart for next year's proposed personnel
additions. Staff is looking to hire two new positions next year especially with potential
territory acquisition. Daryl Thompson requested that whenever we hire a new person,
they come to the first commission meeting so everyone can meet them. Discussion
followed.
5.2 Wage and Benefits Committee Update
In June 2013, one of ERMU's Journeyman Lineworkers gave notice to leave to work for
Xcel Energy. This was the 6th lineworker to leave for Xcel in 2 years. Of the 11
lineworkers that were working in the field in 2008, there are only 3 still working in the
field. And currently over 50% of ERMU lineworkers have 2 years or less experience.
At the recommendation of staff at the July Utilities Commission Meeting, the
Commission gave direction for the Wage and Benefits Committee to analyze the issue
and bring back a recommendation at the August meeting.
The minimum qualifications for our lineworker position require the completion of a one
year lineworker vocational program. Once hired, the apprentice lineworker is required to
complete a four year apprentice program to become a journeyman lineworker. The
apprentice program involves bookwork that is completed afterhours, examinations, and
hours of experience. Once completed, the apprentice program is equivalent to a four-year
degree. Troy Adams pointed out that the lineworkers were not getting credit for their
education when the points system was initially calculated. Once the calculation was
made including the education, the lineworkers automatically moved up one pay grade.
Staff also proposed splitting staff into four separate groups: Lineman, Field Staff, Office,
and Management so everyone does not always follow the same trend as they are all
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Regular meeting of the Elk River Municipal Utilities Commission
August 13, 2013
different industries. The commissioners supported breaking the company into different
groups as it will give them more flexibility to change each category as needed.
Discussion followed.
Al Nadeau made a motion to approve the pay increase for the lineman retroactive to
August 1,2013 and approve the pay plan structure as proposed with the four
separate groups. Daryl Thompson seconded the motion. Motion carried 3-0.
5.3 Triple Feeder Rebuild Contractor Bids
Staff recently went out to bid for a Triple Feeder Rebuild project. This project includes
removing an overhead line that runs from the wastewater treatment plant to Sonic on
Main Street and replacing with underground. This process requires using a much bigger
bore rig so staff had to bid this project out.
The bid opening was on August 12, 2013. Three contractors bid the project and two of
them were present at the opening. After the bid opening, staff discovered two of the
contractors did not sign the bid or get it notarized. Staff had conversations with our legal
counsel and it was determined that we cannot legally accept the bids that are not signed.
Troy Adams said re-bidding the project would set us back, but we could do other projects
in the meantime. Discussion followed.
Daryl Thompson made a motion to re-bid the Triple Feeder Rebuild. Al Nadeau
seconded the motion. Motion carried 3-0.
6.0 OTHER BUSINESS
There was no other business.
6.1 Staff Updates
Troy Adams added to his staff update that the old utilities office on King Ave. is torn down
now and the spot where it used to be is now a parking lot owned by the City of Elk River.
From time to time the City hosts events in that parking lot. ERMU need something to release
us of liability if there is an event there. At a minimum,the commission could approve a
blanket letter agreement with the City so when they host an event,they have us listed on their
form for insurance coverage. Discussion followed.
Theresa pointed out that we have two staff members that we want to recognize who have
reached their 5 year mark. Plaques will be presented to these employees at the commission
meeting recap. John Dietz wanted to thank all of the staff for their help answering franchise
fee calls.
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Regular meeting of the Elk River Municipal Utilities Commission
August 13,2013
Cal Portner mentioned that a potential business wanting to go into the Nature's Edge Business
Park would possibly not be able to build there since Sherburne County did not approve their
full loan. The City is going to see what types of financing they could present to help this
business. This area is included in the utilities potential territory acquisition.
John Dietz asked Tom Sagstetter about Project Conserve. This program has always been
shared by the City and ERMU. The next phase will be primarily run by the utilities.
6.2 Set Date for Next Meeting
The next regularly scheduled Commission meeting will be on September 10,2013.
The Commission recessed the regular meeting at 4:30pm.
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
6.5 Adjourn Regular Meeting
Al Nadeau moved to adjourn the regular meeting of the Elk River Municipal Utilities
Commission at 4:46. Daryl Thompson seconded the motion. Motion carried 3-0.
Minutes prepared by Jennie Nelson.
gri
Jo" J. ,retz
Chair, ERMU Con. .on
Tina Allan
City Clerk
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Regular meeting of the Elk River Municipal Utilities Commission
August 13,2013