06-10-2014 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
June 10,2014
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;
Michelle Canterbury,Executive Administrative Assistant
Others Present: Cal Portner,City Administrator;Peter Beck,Attorney;Angela Hauge,Water Operator
1.0 CALL MEETING TO ORDER
John Dietz called the June 10,2014 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 June 10,2014 Utilities agenda.Al Nadeau seconded the
motion.Motion carried 3-0.
1.3 Introduction of New Employee
•
Mark Fuchs introduced the new Apprentice Lineworker,Aaron White. The commission
welcomed the new employee.
2.0 CONSENT AGENDA(Approved By One Motion)
John Dietz had a few questions on the financials,staff responded.
•
Page 1
Regular meeting of the Elk River Municipal Utilities Commission
June 10,2014
Daryl Thompson moved to approve the Consent Agenda as follows:
2.1 May Check Register
2.2 May 20,2014 Previous Meeting Minutes
2.3 Financial Statements
2.4 2014 Elk River Dam Emergency Action Plan
Al Nadeau seconded the motion. Motion carried 3-0.
3.0 OPEN MIC
No one appeared for open mic.
4.0 OLD BUSINESS
There is no old business.
5.0 NEW BUSINESS
5.1 Twin Lakes Road Watermain Extention Bids
The Twin Lakes Road Watermain Project has been designed and was noticed for formal
bids. The bid opening was on June 6, 2014. Three contractors bid on the project with the lowest
bid coming in from GM Contracting at$361,431.72. Staff is recommending the commission
award the bid to GM Contracting. The commission had a few questions, staff responded.
Al Nadeau made a motion to award the bid to GM Contracting. Daryl Thompson
seconded the motion. Motion carried 3-0.
5.2 Well Variable Frequency Drive Upgrade Project
Eric Volk explained why it would be in our best interest to replace the soft starts with
variable frequency drives (VFDs) in the remaining wells. The estimated costs associated with
upgrading Wells, 2, 3, 4 and 6 were provided to commission. One quote was received for
$45,226.00 which includes putting$13,820.00 into Well #3 to make repairs necessary to bring it
up to code. The funds for the project would come from the $93,724.03 remaining in the budget.
John Dietz had questions on whether the funds we'd be using for this project would be taking
away from other projects it was originally budgeted for, staff responded.
Al Nadeau made a motion to approve the purchase and installation of VFDs for the
remaining wells. Daryl Thompson seconded the motion. Motion carried 3-0.
Page 2
Regular meeting of the Elk River Municipal Utilities Commission
June 10,2014
5.3 2014 ERMU Water Quality Report(Consumer Confidence Report—CCR)
The ERMU Water Quality Report has been added to our website and a notice that the
water report is available to our water customers will be sent out in this month's Connector.
Water Operator,Angela Hauge, gave a power point presentation of "Behind the Scenes: The
Consumer Confidence Report. " The presentation covered what a Consumer Confidence Report
(CCR) is, and the requirements the Minnesota Department of Health (MDH)has on reporting
specific information on our water quality. In addition,we have the option of adding further
topics for customer education and awareness. She went on to explain that this year the MDH
allowed water suppliers the option of utilizing a web version as a primary media choice to post
our CCR, as long as we send customers a notice that tells them where to view the document.
John Dietz had some questions on when we test the water, if we get many calls from our
customers inquiring about the water quality,the hydrant maintenance program, and frozen water
lines, staff responded.
6.0 OTHER BUSINESS
There was no other business.
6.1 Staff Updates
Troy Adams gave an update on the hiring process.Through the last interview process we
found two good candidates for the CSR position,so we decided to extend a job offer to both of them.
One will be starting next week and will be backfilling the position due to Michelle Canterbury's
promotion,and the other will begin the end of July and will be filling another CSR opening due to
Dolores Andreasen's retirement. Troy attended the GRE annual meeting last week and shared that
unlike previous years,GRE did not give a projected rate increase for next year. Year to date,GRE has
seen a 6%growth,due to the polar vortex and propane shortage from this winter. Even with the
increase in sales,costs were higher than revenues;this has resulted in the extremely high Power Cost
Adjustments(PCAs)we received so far this year.
Daryl Thompson had some questions on how much we've credited back to customers,and on
whether we should have done this in January. Troy responded that at the time we credited back the
PCAs,we had no indication that we were going to be charged one two months in a row. In addition,
we were still sitting on$500,000 in reserves that the commission earmarked for the PCAs.
John Dietz had some questions on how the computer software conversion was going. Theresa
Slominski updated the commission on the NISC training schedule and the process of getting things set
up. John Dietz said that Bob Pearson introduced the new IT person to the Council and indicated that
any one of the three IT people would be helping us out. They've identified a set schedule of when IT
will be working at the office and at the plant. We're looking forward to having the dedicated time
with IT staff.
John Dietz told Mark Fuchs that Lloyd Barthel said thank you for the street lights.There were
some questions on who controls the semaphore lights and all the stop lights in Elk River. Discussion
Page 3
Regular meeting of the Elk River Municipal Utilities Commission
June 10,2014
followed.
Wade Lovelette wanted to point out that May was a wild month for locates and that the
metering department helped out with them.
Eric Volk added that when they pulled the motor out of Well#5,they discovered that it was a
different motor than what they thought was in there so they needed to order additional equipment.
There will be an additional$1,125.00 charge on top of what was approved last month.
John Dietz had a question for Peter Beck regarding the situation we're having with a particular
customer and wanted to know if he had given an appropriate response by telling this customer he did
not want to meet with him individually on this issue. The appropriate channel would be for that
customer to come to a commission meeting where the other commissioners,staff,and our attorney
would be present. Peter Beck agreed with this response and how it was handled.
6.2 Set Date for Next Meeting
As Al Nadeau will be out of town for the next regularly scheduled commission meeting,staff
and the other Commissioners agreed to postpone the meeting until July 15,2014.
The Commission recessed the regular meeting at 4:08p.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 purpose 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 4:47 p.m.Daryl Thompson seconded the motion. Motion carried 3-0.
Page 4
Regular meeting of the Elk River Municipal Utilities Commission
June 10,2014
Minutes prepared by Michelle Canterbury.
it. ..darn
.14 J.Detz
Chair, U Cs ission
Tina Allard
City Clerk
Page 5
Regular meeting of the Elk River Municipal Utilities Commission
June 10,2014