12-17-2013 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
SPECIAL MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
December 17,2013
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 December 17,2013 meeting to order at 3:30 p.m.
I.1 Pledge of Allegiance
The Pledge of Allegiance was recited.
1.2 Consider Utilities Agenda
Troy Adams added an agenda item under New Business—Grant of Easement.
Daryl Thompson made a motion to approve the amended Utilities Agenda,Al Nadeau seconded
the motion.Motion carried 3-0.
1.3 Announcement of Water Superintendent Successor
Troy Adams announced Eric Volk,prior Lead Water Operator,and new Water
Superintendent. The commissioners congratulated him on the promotion.
2.0 CONSENT AGENDA(Approved By One Motion)
John Dietz had a few questions on the check register and financials,staff responded.
Daryl Thompson moved to approve the Consent Agenda as follows:
2.1 November Check Register
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Special meeting of the Elk River Municipal Utilities Commission
December 17,2013
2.2 November 12,2013 Previous Meeting Minutes
2.3 Financial Statements
2.4 CAPX Brookings Project Allocation Increase
2.5 2014 Official Depository Designation
2.6 2014 Official Newspaper Designation
2.7 2014 Regular Utilities Commission Meeting Schedule
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 2014 Budget
Troy Adams presented the 2014 Budget. He said that it is mainly a review from the last
meeting. but there are a few things to point out. Per commission request,there are examples in
the packet of how individual rates would affect customers. The biggest change in the electric
department's budget is that staff was anticipating paying for two new engines for the landfill in
2014, however they had to be replaced in 2013 so the budget was changed to reflect that. The
electric department rate increase is a blended 1.8%.
The blended rate increase is 3.29%for a typical residential water customer. The main
item that changed for the water department from the prior meeting is that there was money
budgeted for some work on Well #4's filter. Staff now needs to do some maintenance at Well #7
so the money will be reallocated for that.
John Dietz asked how customers are informed of the rate increases. Theresa Slominski
said that we will put a bill message alerting customers of new rates and will put something in
more detail on a bill stuffer.
Troy Adams said the rollout of the new software happens to be right during the audit
preparation. Staff asked the auditors if they would be willing to prepare the final audit for us
given the bad timing. The auditors did not anticipate it being a large expense. This expense is not
reflected in the budget.
Theresa Slominski said that the electric department will be doing a bond refunding. Staff
would also like it to end in 2018 instead of 2022. ERMU would be increasing the payment
towards that bond over the next three years. Discussion followed.
Al Nadeau made a motion to approve the 2014 Budget, Daryl Thompson seconded the
motion. Motion carried 3-0.
5.0 NEW BUSINESS
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Special meeting of the Elk River Municipal Utilities Commission
December 17,2013
5.1 ERMU Policy Book
The Elk River Municipal Utilities policy book has grown significantly over the years and
is in need of reorganization. The structure of the book has not been addressed in decades and is
not optimal at this point, especially given the large size.
To give the book more structure, staff has gone through every document and split them
into two books: Policy or Procedure. Discussion followed. The commission agreed with splitting
the book into two.
5.2 Grant of Easement
Troy Adams said that when the new transformer was delivered to the North Substation a
few months ago, improvements had to be made to the driveway so the semi could back into the
area. An easement needed to be purchased from the property owner for that portion of land. The
easement is set for$2,957. Discussion followed.
Daryl Thompson made a motion to approve the Grant of Easement Agreement,Al Nadeau
seconded the motion. Motion carreid 3-0.
6.0 OTHER BUSINESS
There was no other business.
6.1 Staff Updates
Troy Adams said that he had a meeting at MMPA today.They discussed their rate increase
and their Energy Cost Adjustments,which is similar to a Power Cost Adjustment. Discussion
followed.
John Dietz asked Theresa Slominski how we explain the PCA credit to customers. Staff puts a
message on every bill and the credit is labeled as a PCA credit.
Wade Lovelette said he included financials for security systems in his staff update and will do
that every month.John Dietz asked if one of the locators did other work during the winter when it is
slower. Wade Lovelette said that Jeff is using the infrared camera to find hot spots and Dick is
working on mapping.
Cal Portner said that there will be an expansion of the wastewater treatment plant in the spring.
He also said that letters went out to customers recently about the franchise fee rebates.Discussion
followed.
Eric Volk told the commissioners that about half of the private hydrants have signed up for the
new maintenance program. Staff will provide the fire department with a list of who is signed up and
who is not and they can follow up with the customers that have not signed up.
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Special meeting of the Elk River Municipal Utilities Commission
December 17,2013
John Dietz said to Tom Sagstetter that at the council meeting the night before,the council
discussed the Energy City mission statement.The mission statement was affirmed. Discussion
followed.
6.2 Set Date for Next Meeting
The next regularly scheduled Commission meeting will be on January 14,2014.
The Commission recessed the regular meeting at 4:20pm.
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. Adiourn Closed Session
6.5 Adjourn Regular Meeting
Al Nadeau moved to adjourn the regular meeting of the Elk River Municipal Utilities
Commission at 4:27.Daryl Thompson seconded the motion. Motion carried 3-0.
Minutes prepared by Jennie Nelson.
�4• 2 l'
Jt'nJ.Detz
C air,ERMU Commission
Tina Allard
City Clerk
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Special meeting of the Elk River Municipal Utilities Commission
December 17,2013