02-11-2014 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
February 11,2014
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;
Eric Volk, 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 February 1 I, 2014 meeting to order at 3:30 p.m.
1.1 Pledge of Allegiance
The Pledge of Allegiance was recited.
1.2 Consider Utilities Agenda
There were no questions on the agenda.
Daryl Thompson moved to approve the February 11,2014 Utilities agenda.Al Nadeau seconded
the motion.Motion carried 3-0.
1.3 Recognition of Promotions& Introduction of New Employees
Eric Volk introduced the new Lead Water Operator, Mike Langer. Theresa Slominski
introduced the new Customer Service Representative,Jolene Fenn. Wade Lovelette introduced Jeff
Murray who was recently promoted to be an Electrical Technician.
The commission welcomed the new employees and congratulated Jeff on his promotion.
2.0 CONSENT AGENDA(Approved By One Motion)
John Dietz had a few questions on the financials, staff responded.
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Regular meeting of the Elk River Municipal Utilities Commission
February 11,2014
Daryl Thompson moved to approve the Consent Agenda as follows:
2.1 January Check Register
2.2 January 14,2014 Previous Meeting Minutes
2.3 Financial Statements
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 Resolution for Award of Bonds 2014A Electric
At the January 14`h meeting, the Commission passed a resolution to proceed with
refunding the bond 2006A issue and the City Council passed it at the January 21s`meeting. At
that time it was identified that the award of the bonds by the commission would come back and
be on the February 11th agenda.
Terri Heaton was present from Springsted Incorporated. Related to the refunding bonds,
utility staff, along with staff from the City of Elk River and Springsted, had a rating call for
ERMU on February 3rd. Moody's issued an Aa3 rating result on February 7th. The last rating
result ERMU had was an A2 so this was a drastic increase. Tern Heaton said that it is rare to
have a utility rated so high. Staff did an excellent job preparing for the rating call.
The bond was sold the morning of the commission meeting. Terri Heaton said that six
financial entities bid on the $2,125,000 bond. The low bid came from UBS Financial Services,
Inc. The savings on the bond will end up being about $222,000. John Dietz asked a few
questions, staff responded.
Al Nadeau made a motion to approve the resolution and award the bid to UBS Financial
Services, Inc. as the low bidder. Daryl Thompson seconded the motion. Motion carried 3-0.
5.0 NEW BUSINESS
5.1 2013 Annual Safety Report
Troy Adams presented the 2013 OSHA log. There was only one recorded incident and
zero days lost from work.
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Regular meeting of the Elk River Municipal Utilities Commission
February 11,2014
5.2 2013 Electric Reliability Report
Wade Lovelette presented the 2013 electric reliability report. Many of the numbers
stayed the same as 2012 or were very similar. The Average Service Availability Index (ASAI) is
99.999%, which means our customers were with power 99% of the time. John Dietz had a few
questions, staff responded.
5.3 Electric Cable Bids
The underground electric cable required for the 2014 capital construction projects and
maintenance has been determined and was noticed for formal bids. The bid opening was on
February 10, 2014. Staff is recommending the commission award the bid to Border States. Price,
product and availability contributed to the decision to award the bid to Border States. The
commission had a few questions, staff responded.
Al Nadeau made a motion to award the cable bid to Border States. Daryl Thompson
seconded the motion. Motion carried 3-0.
5.4 Office Hours
In March 2014, the Office staff will begin work on the general ledge and billing software
conversion. This process will take over one year to complete. During this time there will be the
need to coordinate group trainings. Some of these trainings may be more efficiently presented to
the Office staff all at once.
Staff recommended that the Friday public hours be changed from 8:00 a.m. to 8:30 a.m.
so there could be a weekly staff meeting during that time without any customer interruptions.
This would provide an opportunity for everyone to train together and hear the same
questions/information all at once. John Dietz was not in favor of changing the office hours. Daryl
Thompson said if customers are given them enough time to make an adjustment, he doesn't see it
as a problem. Al Nadeau was in favor of changing the hours, but did want staff to track how
many people come in on Friday mornings during that timeframe and provide the commission
with an update later.
Daryl Thompson made a motion to change the public office hours on Fridays from 8:00
a.m. to 8:30 a.m. Al Nadeau seconded the motion. John Dietz voted nae. Motion carried 2-
1.
5.5 2014 Hockey Day Minnesota Update
Troy Adams updated the commission on ERMU's contribution to the 2014 Hockey Day
Minnesota. Excluding any labor provided during normal business hours, the labor and equipment
expenses were $910.08. For a third party event, ERMU's policy would be to charge for this
labor. Troy Adams recommended donating this labor and expense to the City of Elk River as a
contribution to the community.
Al Nadeau made a motion to donate the expense to the City of Elk River. Daryl Thompson
seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
February 11,2014
6.0 OTHER BUSINESS
There was no other business.
6.1 Staff Updates
Theresa Slominski had a number of items to add to her staff update. She noted that ERMU has
passed along the remainder of the Power Cost Adjustment credit to customers.Next month's
commission meeting agenda will have an item on donations to HeatShare.A question was raised if
ERMU wants to offer customers the option to donate their credit balances to HeatShare. A resolution
will be brought back in March. She also said that after crediting customers for some billing errors a
few months ago, staff was informed about a sales tax audit that would happen in April. The last thing
she mentioned was that it was planned that the City of Elk River would hire an additional IT staff
person and ERMU would"share"that person. City staff posted the position and extended offers to
two people. They both declined. Cal Portner said that the position description would be altered
requiring less experience and reposted.
John Dietz asked Eric about a recent water valve leak. Eric said the street department was a
great help while the valve was getting fixed. He also said there had been three water service lines
freeze. Staff called"repeat"frozen line customers since this is such a cold winter to forewarn them to
run their water continuously to prevent freezing. John Dietz asked if we would send another letter
asking customers to sign up for the Private Hydrant Maintenance Program. Eric said that will be done
again in the fall.
6.2 Set Date for Next Meeting
The next Commission meeting will be on March 18, 2014. Troy Adams, Daryl Thompson and
John Dietz will be in Washington D.C. for the American Public Power Association Legislative Rally
during the normally scheduled commission meeting.
The Commission recessed the regular meeting at 4:37 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
6.5 Adjourn Regular Meeting
Al Nadeau moved to adjourn the regular meeting of the Elk River Municipal Utilities
Commission at 4:45 p.m. Daryl Thompson seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
February 11,2014
Minutes prepared by Jennie Nelson.
\
John.Die
Chair, E Comm sssiion
Tina Allard
City Clerk
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Regular meeting of the Elk River Municipal Utilities Commission
February 11,2014