6.1a. ERMUSR 10-21-2014Elk River .
Municipal Utilities
UTILITIES COMMISSION MEETING
TO:
FROM:
Elk River Municipal Utilities Commission
Troy Adams, P.E. — General Manager
John Dietz — Chair
P O W E 0. E D To S E R V E
Al Nadeau — Vice Chair
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Daryl Thompson — Trustee
MEETING DATE:
AGENDA ITEM NUMBER:
October 21, 2014
6.1a
SUBJECT:
Staff Updates — General Manager
DISCUSSION:
• Public Power Week was observed October 5 — 11. As in previous years, the City Council
unanimously adopted a resolution to recognize the occasion. The celebration of Public Power
Week aligns with celebration of the 69th anniversary of the municipalization of Elk River Light &
Power which occurred on October 4.
• In anticipation of the addition of a second accountant to the Office Department, workspace
modifications are being implemented so both accountants can be located adjacent to each other.
ERMU participated with the City in a "Fall Wellness Get Together, Flu Shot, and Lunch" event
on September 10. The event included a blood drive, donations for the CAER Food Shelf, and
games. Theresa Slominski volunteered to take a shift in the dunk tank fundraiser. ERMU's
Michelle Martindale and Angela Hauge serve on the Health Rewards Program Committee with
the City. As always, the Committee did a great job planning this event and it was well attended
by both ERMU and City staff.
• In August, the MMUA board of directors created a Solar /Distributed Generation Task Force to
help develop a public power approach to solar. The task force will hold its first meeting on
October 22. Because of an Energy City obligation Tom Sagstetter will not be able to attend. I
will be attending this first meeting. In the future, Tom will be the primary ERMU representative
on this task force.
On Wednesday October 8, Mark Fuchs and I attended the Altec HiLine open house for their
newly expanded facility in Duluth to determine whether or not ERMU will be able to have future
trucks manufactured there. Previously this plant manufactured vehicles designed for
transmission. With the expansion to their facility they will also be manufacturing trucks designed
for distribution voltage electrical systems as well as communication systems. This would have
been a great company to have recruited to locate in Elk River.
ERMU has purchased their last two bucket trucks through Altec which were assembled at their
Indianapolis facility. When ERMU purchases bucket or digger derrick trucks at least one pre -
paint inspection is conducted because of the detailed design specifications. We were very
impressed with the facility, employees, management, and operations of the facility. There is a big
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difference in a facility that manufactures from one that assembles. Although we have not had any
issues with the current product, we feel that quality and service should be better for vehicles
manufactured at this facility. This should also result in cost savings to ERMU. At the open
house, we were able to discuss fleet practices and specifications with other utilities including
Connexus Energy and Xcel Energy.
• The software conversion to NISC required an update for our cash drawer at the front counter. We
have had local finish carpenters look at our front counter and advise on the modifications required
to fit the new cash drawers. This work will need to be completed prior to the Customer Care and
Billing module of NISC going live in 2015.
The initial draft of the history report has been completed by Hess, Roise and Company. This
report covers 1994 through 2015 to coincide with ERMU's 100`h anniversary. At this point the
draft is really rough. I will be working with the historians to develop an ERMU public power
story line that ties the facts and stats together and highlight the great journey our community has
taken. The previous history report that had been completed in 1994 will be used in conjunction
with the new report. I plan to write a prologue to set up the public power story line and then an
epilogue to talk about our bright future. When we get closer to publication, I'd like to get a
picture of the Commission and a picture of all the employees to include in the book.
• I have submitted a request to the City for the use of water trunk utility funds to pay for
engineering and construction planning in 2015 for the addition of a filtration plant for well #9.
The filtration plant is the last phase of a multiyear project to increase water system capacity to the
Nature's Edge Business Park area. This request will be considered by Council on October 20 as
part of their Capital Improvement Plan.
• The draft amendment to the non - exclusive tower attachment lease agreement for the Sprint 2.5
equipment upgrade has been completed. I am currently reviewing the amendment. Depending on
the Sprint review process, this amendment to the agreement may be ready for Commission
consideration in November. The Sprint 2.5 upgrade is planned for three of our water towers.
As ERMU goes through the software conversion to NISC staff is auditing ALL customer data,
rates, and fees. We want to be able to move forward in the new system with high confidence in
data accuracy. This process has already identified numerous programing and procedural issues
that we are correcting. Not only do we want accurate data on the "go live" date, we also want
improved practices and procedures. We are currently working on data issues relating to security
lights and trash accounts.
On October 3, Wade Lovelette gave formal notice of his upcoming retirement on June 30, 2015.
Having worked for ERMU for over three decades, Wade has experienced and contributed to the
growth of the Utilities. He will be able to celebrate his retirement along with celebrating the
100th anniversary of the utility he helped build.
ATTACHMENTS:
• ERMU Request for City Council Action — Memo and Resolution Recognizing Public Power
Week, October 5 -11, 2014
• Duluth News Tribune — Altec is on the up in Duluth — October 8, 2014
• ERMU Request for Approval of Trunk Utility Funding for Filter Plant Project Engineering —
October 13, 2014
• Wade Lovelette Notice of Retirement — October 3, 2014
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City of
Elk iL= -
River
Request for Action
To
Item Number
Mayor and City Council
6.3
Agenda Section
Meeting Date
Prepared by
Presentations, Awards,
October 6, 2014
Troy Adams, P.E. — ERMU General Manager
and Recognition
Item Description
Reviewed by
Resolution Recognizing Public Power Week,
Cal Portner, City Administrator
Reviewed by
October 5 —11, 2014
Action Requested
Elk River Municipal Utilities requests City Council adoption of the attached resolution recognizing Public
Power Week, October 5 -11, 2014.
Background /Discussion
Elk River Municipal Utilities, now in their 67`' year operating as a municipally owned public power utility
and in their 99`s year operating since incorporation, will be celebrating 2014 Public Power Week.
This national event is sponsored in conjunction with the American Public Power Association.
There are approximately 2,000 community -owned electric utilities that collectively provide electricity on a
not - for -profit basis to 47 million Americans. They are operated by local governments as a public service
with the mission of providing electricity in a reliable manner, at a reasonable cost, and with proper
protection of the environment.
Public power companies exist to serve our fellow citizens, friends, and neighbors. Elk River Municipal
Utilities' loyalty is to our customers and our community, not stockholders. We are proud to be a public
power utility and to help make our community a great place to live and work.
Financial Impact
Adoption of this resolution does not have a financial impact on the City of Elk River.
Attachments
■ Proposed Resolution Recognizing Public Power Week.
NATURE
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Resolution 14-
A Resolution of the City of Elk River Recognizing Public Power Week,
October 5-11; Elk River Municipal Utilities Helps Our Community in
Powerful Ways
WHEREAS, the Elk River Power and Light Company was incorporated in 1915 and
began providing electricity to the Village of Elk River in 1916; and
WHEREAS, after a decade of work by local community leaders the Elk River Power and
Light Company was purchased by the Village of Elk River on October 4,1945; and
WHEREAS, the Village Council of the Village of Elk River, by resolution adopted on July
11, 1947, created a Water, Light, Power and Building Commission in and for the Village of
Elk River; and
WHEREAS, the Water, Light, Power and Building Commission in and for the Village of
Elk River became, in 1949, by operation of Minnesota Statutes §§ 412.331- 412.391, a
municipal utility now known as Elk River Municipal Utilities (ERMU); and
WHEREAS, ERMU's original electric service territory included the Village of Elk River
and portions of immediately adjacent communities; and
WHEREAS, in 1977 the town of Elk River and the old city of Elk River consolidated to
form the new City of Elk River (City); and
WHEREAS, we, the citizens of Elk River, place high value on local control over
community services and therefore have chosen to operate a community - owned, locally
controlled, not - for - profit electric utility and, as consumers and owners of our electric utility,
have a direct say in utility operations and policies; and
WHEREAS, ERMU provides our homes, businesses, farms, social service, and local
government agencies with safe, reliable, efficient, and cost - effective electricity employing
sound business practices designed to ensure the best possible service at not - for - profit rates;
and
WHEREAS, ERMU is a valuable community asset that contributes substantially to the
well-being of local citizens through energy efficiency, customer service, environmental
protection, economic development, and safety awareness; and
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WHEREAS, ERMU has also taken on additional stewardship for our community through
coordinating efforts with the City in expanding community services and economic
development opportunities; and
WHEREAS, ERMU is a dependable and trustworthy institution whose local operation
provides many consumer protections and continues to make our community a better place
in which to live and work, as well as contributes to protecting the global environment;
NOW, THEREFORE, BE IT RESOLVED that ERMU will continue to work to bring
lower -cost, safe, reliable electricity (and water services) to community homes and businesses
just as it has since the utility was created; and
BE IT FURTHER RESOLVED that the week of October 5 -11 be designated the 28`''
annual Public Power Week in order to honor ERMU for its contributions to the community
and to make its consumer - owners, policy makers, and employees more aware of its
contributions to their well-being and how it makes their lives powerful; and
BE IT FURTHER RESOLVED that our community joins hands with more than 2,000
other public power systems in the United States in this celebration of PUBLIC POWER and
recognition that ERMU is good for consumers, businesses, the community, and the nation.
Passed and adopted this 6`' day of October 2014.
ATTEST:
Tina Allard, City Clerk
M:
John J. Dietz, Mayor
pP0WIIBEo er
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Duluth News Tribune
Altec is on the up in Duluth
By Peter Passi on Oct 8, 2014 at 10:19 p.m.
Email Tweet C 2
is a long way from Birmingham, Ala., to Duluth, yet Altec Inc. born as the Alabama Truck
Equipment Co. 85 years ago — has found an attractive home at the Clure Marine Terminal.
The company celebrated a recent expansion and remodeling of
its Duluth aerial lift production facility with an open house
this week, but Jon Styslinger, Altec's president, predicts there
won't be room at the plant for receptions in the near future.
As Altec continues to ramp up production in Duluth,
Styslinger said he expects manufacturing operations will
quickly spill into the space where guests milled Wednesday
morning.
Dave Faynik, general manager of Altec HiLine LLC's
operations in Duluth, declined to disclose how many people
are now on the local payroll, saying: "We like to keep a low
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34.
profile, but we're excited about what we've been able to build
here in Duluth."
Jim Sharrow, facilities manager for the Duluth Seaway Port
Authority, which is Altec's landlord, estimated the company's
local workforce at "around 200 people or maybe more now."
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"They've had very steady, measured growth over the last decade," Sharrow said.
Altec HiLine is a subsidiary of Altec Inc., and the company's footprint in Duluth has continued to grow
with its production. Altec now leases about 144,000 square feet of manufacturing floor, 11,000 square
feet of office space and 5,000 square feet of storage from the Port Authority.
Altec now occupies all of a building that once was home to American Hoist & Derrick. It used to share
quarters with A.W. Kuettel & Sons Inc. and Chicago Tube & Iron Co., but both have relocated, the
former to Duluth's Airpark industrial area and the latter to Proctor.
Duluth Mayor Don Ness said the city provided financing through its Build in Duluth loan program to
help Kuettel construct its new facility. In addition to aiding that company, Ness said: "We wanted to
give Altec the space it needed to expand operations."
Styslinger, whose grandfather founded the Alabama Truck Equipment Co. in 1929, said Altec acquired
the assets of Duluth's NorStar Products International in 2002, drawn by the company's line of
specialized big boom trucks serving the electrical transmission industry. He said that besides having an
attractive product line, NorStar also was a good fit with Altec because "they shared the same culture and
values as we had."
Today, Altec manufactures lift trucks in Duluth with aerial reaches of up to 150 feet. Some of its biggest
units cost nearly $1 million apiece, said Tim Spangenberg, a regional sales manager.
Styslinger said the machines are produced to meet exacting standards.
"In the electrical transmission industry, safety is paramount. There's no cutting corners when you're
putting men in the air in a dangerous environment," he said.
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Most of the equipment produced in Duluth is sold in North America, but Faynik said the company has
found customers for its specialized aerial lift machines in more than 100 countries around the globe.
Faynik said he has been pleased with the quality of workers Altec has been able to recruit in Duluth.
"We've partnered with local colleges to provide customized training. And a lot of the programs they've
developed for us have also proven valuable to other manufacturers in the area," he said. "Duluth has a
strong manufacturing heritage, and we've been able to hire a lot of great people here."
Ness said area schools have stepped up to supply Altec with the skilled workforce it needs.
"We have UMD with the strong reputation of its engineering program, and Lake Superior College
turning out students with strong machining and manufacturing skills. It's a marriage made in heaven,"
he said.
Besides receiving help from schools, Altec also has benefited from state aid. Last year, the company
received a $250,000 forgivable loan through the Minnesota Investment Fund to help expand operations
in Duluth.
Lt. Gov. Yvonne Prettner Solon, who was at Altec's open house on Wednesday, said it was money well
spent.
"When we look at the Minnesota Investment Fund and the impact it has had, we see it has provided a
24 -to -1 return on investment from 2005 -14," she said.
Those kinds of results are why the state decided to pump an additional $30 million into the MIF
program last year.
Faynik said Altec recently brought to Duluth some part fabrication that had been performed at other
facilities. To handle some of that work, the company has invested in new high - precision metal- cutting
plasma and laser machines at its Duluth plant.
Demand for aerial lift trucks for the electrical transmission industry has remained solid, Spangenberg
said. He pointed to efforts to make the power grid more robust and reliable in the wake of mass outages
in recent years. Spangenberg noted that the proliferation of green energy operations, such as wind farms
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and solar arrays, also has necessitated more transmission capacity.
Explore related topics:
Peter Passi
PPassi @duluthnews.com
(218) 279 -5526
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Elk River
Municipal Utilities
13069 Orono Parkway e P.O. Box 430
Elk River, MN 55330 -0430
The City of Elk River
Attn: Mr. Cal Portner — City Administrator
13065 Orono Parkway
Elk River, MN 55330
Phone: 763.441.2020
Fax: 763.441.8099
,vww. elkriv eru till ties. corn
October 13, 2014
Subject: Request for Approval of Trunk Utility Funding for Filter Plant Project Engineering.
Mr. Portner,
Elk River Municipal Utilities requests funding from available water trunk utility finds for the
engineering of a new Well #9 Water Filtration Plant be included for Council approval in the
City's 2015 Capital Improvement Plan. The engineering has been estimate at $60,000.
In 2012 ERMU began implementing a water distribution system upgrade to more efficiently
utilize the capacity of our current wells and improve water distribution to the southeastern area of
the urban service area. Specifically, the improvements are designed to provide additional water
capacity to the new Natures Edge Business Park area. For the first phase of this project the
Council approved the use of water trunk funds for a water main improvement project that
rerouted water from Well #8 to connect with the water distribution system at Well #9 located on
Twin Lakes Parkway. This project then rerouted the water output from Well #9 to the Well #7
Filtration Plant located on Twin Lakes Road.
In 2013 the Council approved the use of water trunk funds for the second phase of this project for
a 2014 water main improvements project that will add over 2,700 additional feet of water main on
Twin Lakes Road from the Well 47 Filtration Plant to County Road 12. This project is currently
under construction.
The final phase of this project is to construct the Well #9 Filtration Plant adjoined to the Well #7
Filtration Plant. This project is projected for construction in 2016 with the engineering to be
completed in 2015. The funding for the filtration plant addition will likely be through the
issuance of bonds in 2016. ERMU would like to utilize water trunk utility funds to pay for the
2015 engineering costs. This project is proposed as part of the 2015 ERMU capital budget and
will be presented for final approval in December by the Utilities Commission contingent upon
City Council approval of the use of trunk funds.
Best Regards:
Troy Adams, P.E.
General Manager
Cc: Eric Volk — Water Superintendent
Justin Femrite, P.E. — City Engineer
j_j Tim Simon — City Financial Director P O W E R E D D M
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Wade novelette
13519 Islandview Drive
Elk River, MN 55330
Troy Adams
General Manager
Elk River Municipal Utilities
13069 Orono Parkway
P.O. Box 430
Elk River, MN 55330
Dear Troy:
This letter is my official notification to you and to my company that my last day of work at Elk
River Municipal Utilities will be June 30, 2015. On that day, I plan to retire. This will mark 33
years, eight months here.
I am excited about my impending retirement but wanted to take this opportunity to thank you for
all of the opportunities that I have experienced working for Elk River Municipal Utilities. I have
genuinely enjoyed my employment as a Lineman, Lead Lineman, Line Foreman and finally
Technical Services Superintendent and will miss you and my coworkers when my retirement day
comes.
Please let me know what I can do to help you with the transition of my work to another
employee. I plan to work right up until my retirement date and will be happy to help you make a
smooth transition.
Again, I have truly enjoyed working at Elk River Municipal Utilities and will miss my coworkers
and our workplace a great deal.
Please let me know if you need additional information.
Sincerely,
Ile � k Cr-
Wade Lovelette
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