09-10-2013 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
September 10,2013
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 September 10,2013 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 had an addition to New Business and had an announcement to make. There was
a vacancy in the meter department that was recently filled. Tony Hubbard was promoted to Electrical
Technician. The commission congratulated him on his promotion.
Daryl Thompson moved to approve the amended September 10,2013 Utilities agenda.Al
Nadeau seconded the motion. Motion carried 3-0.
2.0 CONSENT AGENDA(Approved By One Motion)
John Dietz had a few questions on the financials and check register, staff responded.
Daryl Thompson moved to approve the Consent Agenda as follows:
2.1 August Check Register
2.2 August 13,2013 Previous Meeting Minutes
2.3 Financial Statements
2.4 Minnesota Municipal Utilities Association 2013-2014 Safety Program Contract
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Regular meeting of the Elk River Municipal Utilities Commission
September 10,2013
2.5 Resolution Accepting NISC's MIC Invitation
Al Nadeau seconded the motion.Motion carried 3-0
3.0 OPEN MIC
No one appeared for open mic.
4.0 OLD BUSINESS
4.1 Freeport Water Tower Rehabilitation Project Update
Eric Volk presented a power point recapping the Freeport Water Tower Rehabilitation
project. The commissioners asked a few questions, staff responded.
4.2 North Substation Upgrade Project Update
Wade Lovelette presented a power point on the North Substation. A new 69KV
transformer will be delivered to that substation in late September. In order to fit the semi down
the driveway, the road had to be expanded. The commissioners asked a few questions, staff
responded.
5.0 NEW BUSINESS
5.1 2014 Budget: 10-Year Capital Project Projections, 2014 Capital Projects and
Equipment Purchases, and 2014 Conservation Improvement Program (CIP)
Troy Adams presented the 2014 Capital Project Projections, Capital Projects and
Equipment Purchases and the Conservation Improvement Program budget line by line for each
department. One of the bigger items for the Electric department is a garage expansion. Troy
Adams will be bringing more information on the project to the Commission at a later date.
John Dietz had a few questions on the Water department budget. There is money noted to
possibly tear down the Jackson Avenue Water Tower. The City of Elk River is fairly confident
they could get enough grant money to repaint the tower. If that is the case, the Utilities should
contribute as much money as it would take to tear it down. Troy Adams was directed to get a
new bid on how much it would cost to do that.
One of the biggest items on the Administration budget is new billing software as the
office has outgrown the current software. The Commission gave approval to move forward with
National Information Systems Cooperative (NISC) who has provided ERMU with the best
software options.
5.2 Minnesota Municipal Utilities Association Annual Summer Conference Update
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Regular meeting of the Elk River Municipal Utilities Commission
September 10, 2013
Troy Adams gave a recap on the Minnesota Municipal Utilities Association(MMUA)
Annual Summer Conference.
Troy Adams also announced that he was elected to the MMUA Executive Board of
Directors. This high honor demonstrates how other utilities and board members recognize
ERMU for what the company means to the Public Power community.
5.3 Triple Feeder Rebuild Contractor Bids
The Triple Feeder Rebuild project was bid back in August, but some of the bids that
came in were unsigned. The Commission had directed staff to rebid the project. For the new bid,
Underground Piercing came in low again. Staff recommended awarding the bid to Underground
Piercing. Al Nadeau asked why the line item bids were such different dollar amounts for each
company. Mark Fuchs said that the labor is probably noted differently with each company.
Daryl Thompson made a motion to award the Triple Feeder Rebuild bid to Underground
Piercing. Al Nadeau seconded the bid. Motion carried 3-0.
5.4 Integrity Testing
In May, a large customer performed integrity testing on their equipment outside of the
times listed on the Integrity Testing Policy and also failed to notify staff. The Integrity Testing
Policy was adopted in January 2009. The customer called to inquire if there was anything the
utilities could do to relieve some of the demand charges.
John Dietz made a motion to approve a one-time 50% reduction in demand charges due to
Integrity Testing. Al Nadeau seconded the motion. Motion carried 3-0.
5.5 Sprint Contract
Sprint is upgrading to 4G in this area and is requesting to put equipment onto the water towers.
After many revisions, the Sprint lease contracts are completed. Staff is requesting the
commission approve the contracts.
Al Nadeau made a motion to approve the amendments regarding the Sprint lease. Daryl
Thompson seconded the motion. Motion approved 3-0.
6.0 OTHER BUSINESS
There was no other business.
6.1 Staff Updates
Troy Adams announced that Tom Sagstetter passed his Energy Efficiency Management
Certification class. He had to write a business plan as a final project and received an excellent score.
The Commission joined staff in congratulating Tom.
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Regular meeting of the Elk River Municipal Utilities Commission
September 10,2013
Theresa Slominski announced that ERMU received a 22%renewal rate for health insurance.
The Wage and Benefits Committee would need to set up a time to meet and go over all of the options.
Wade Lovelette wanted to note the letter that was received from the Police Chief thanking
staff for participating in Night to Unite.
David Berg announced that he will be retiring on January 30,2014.
6.2 Set Date for Next Meeting
The next regularly scheduled Commission meeting will be on October 8,2013.
The Commission recessed the regular meeting at 5:17pm.
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 5:35. Daryl Thompson seconded the motion. Motion carried 3-0.
Minutes prepared by Jennie Nelson.
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Tina Allard
City Clerk
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Regular meeting of the Elk River Municipal Utilities Commission
September 10,2013