2.2. ERMUSR 01-13-15 ELK RIVER MUNICIPAL UTILITIES
SPECIAL MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
December 16,2014
Members Present: John Dietz,Chair;Al Nadeau,Vice Chair; and Daryl Thompson,Trustee
ERMU Staff Present: Troy Adams,General Manager;
Theresa Slominski,Finance and Office Manager;
Mark Fuchs,Electric 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
1.0 CALL MEETING TO ORDER
John Dietz called the December 16,2014 meeting to order at 3:30 p.m.
1.1 Pledge of Allegiance
The Pledge of Allegiance was recited. John Dietz asked for a moment of silence for Judy
McSpadden our longtime employee who passed away December 14th.
1.2 Consider Utilities Agenda
Troy Adams added agenda item 1.5,Judy McSpadden Update,and 5.1 Sprint Non-Exclusive
Tower Attachment Lease Agreements to New Business.
Daryl Thompson moved to approve the amended December 16,2014 Utilities agenda. Al
Nadeau seconded the motion.Motion carried 3-0.
1.3 Introduction of New Employee
Theresa Slominski introduced the new Accountant,Jenny Biorn. The commission welcomed
the new employee.
1.4 Recognition of Zylstra Harley Davidson HOG Chapter's Service
Eric Volk recognized the Zylstra Harley Davidson Owners Group's service to the utilities for
painting 94 hydrants throughout the City of Elk River. This group has shoveled out our hydrants
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for several years and has now added painting them as well. Eric explained that what the HOG's
were able to do in one day would have taken the utilities weeks to accomplish;it's a huge
service. Eric presented an engraved name plate to be added to the utilities new Recognition for
Service plaque to:Mike Matter,Tom Wesley,and Curt Olson,who were present on behalf of
the Harley Owners Group. The Commission thanked them for the Group's continued volunteer
efforts.
1.5 Judy McSpadden Update
Troy Adams shared that Judy's obituary had been published. The funeral service will be held
this Saturday at 1:30 p.m. at Thurston-Lindberg Funeral Home,2005 Branch Ave,Anoka.
There will be a visitation one hour prior to service.
2.0 CONSENT AGENDA(Approved By One Motion)
John Dietz had a few questions on the financials, staff responded.
Daryl Thompson moved to approve the Consent Agenda as follows:
2.1 November Check Register
2.2 November 18,2014 Previous Meeting Minutes
2.3 Financial Statements
2.4 2015 Official Depository Designation
2.5 2015 Official Newspaper Designation
2.6 2015 Regular Utilities Commission Meeting Schedule
2.7 Pay Equity Compliance
Al Nadeau seconded the motion. Motion carried 3-0.
3.0 OPEN FORUM
No one appeared for open forum.
4.0 OLD BUSINESS
4.1 Vision Committee Update
Troy Adams stated that the Vision Committee update is technically not old business but we
wanted to go over it before the proposed 2015 budget was presented. On November 19, the
newly formed Vision Committee met to begin planning for celebrating ERMU's 100th
anniversary in 2015. The proposed 2015 budget has $25,000 built in for items associated
with the planning and implementation of the 100th anniversary celebration. Troy Adams
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shared that after taking a closer look at the estimates to do some of the things we talked
about doing; it's unlikely that the full $25,000 would be used. There was a question on
when we would have the event. Staff responded. Troy Adams also shared some of the
ideas the Committee was tossing around; but nothing has been nailed down yet. Staff
requests the Commission approve the $25,000 included in the proposed budget for the
planning and implementation of the 100th anniversary celebration with the purchases within
this $25,000 being reviewed through the Vision Committee,being approved by the General
Manager, and being reported to the Commission through monthly Committee updates.
4.2 2015 Budget
Troy Adams presented the 2015 Budget. He said that the budget is nearly the same as last
month, but there were a few items he'd like to point out.
In November the Commission had concerns with the preliminary 2015 budget projected
margin of 1.16%being too tight. The budget was reviewed by staff and the rate design was
modified to improve the proposed projected margin to 1.46%. The proposed 2015 rates
were designed to be applied as evenly as possible to all rate classes for typical customers.
This approach results in an approximate electric department rate increase of 3.25% for a
typical customer. This is equivalent to a$52.00 per year increase for these customers.
Other notable items in the electric budget for 2015 are: 2.75% COLA for all four pay plan
groups; contracted cleaning services for the Field Services Building; Consultant for MISO
Attachment 0 transmission analysis; and 2015 APPA Lineworkers Rodeo in Sacramento,
CA. John Dietz asked if we had lineworkers that were interested in competing in the
rodeo. Mark Fuchs said that there was an interest. If they can form a team of three
lineworkers, they would go out to Sacramento to observe; and possibly compete in the
event. Mark would most likely be judging at the event. Having the opportunity to attend
the event in Sacramento would help prepare us for competition in the 2016 APPA
lineworkers rodeo to be hosted in Minnesota. There was further discussion.
The proposed 2015 water budget reflects a 5.4% increase in revenue with a total budget of
$2,503,956. The water budget results in a negative 1.48%projected margin; which is
typical. Troy Adams explained that the water increase is part of a three year plan that
includes slowing increasing the first tier and the base rate by 4%and leaving the second
and third tier where they're at. These proposed rate change will result in a projected 3.25%
increase for a typical residential customer. This is equivalent to an$8.00 per year increase
for these customers. There was further discussion. The largest notable item in the water
budget is engineering costs for the construction of a new filter to be located at Well#7
Filter Plant.
John Dietz requested that we send some type of notice to our customers letting them know
about the rate increase and explaining to them how it will impact them dollar wise.
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Theresa Slominski responded that we have a preliminary letter all ready to go out with the
December bills pending Commission approval of the 2015 budget.
Al Nadeau made a motion to approve the 2015 Budget. Daryl Thompson seconded
the motion. Motion carried 3.0.
5.0 NEW BUSINESS
5.1 Sprint Non-Exclusive Tower Attachment Lease Agreements
Troy Adams distributed the Sprint tower attachment lease agreements for Johnson Street,
Auburn Street, and Jackson Street. Sprint is looking to do their next upgrade which will
exceed the 12 attachments per tower limit which is currently in place. The amended
agreements reflect the additional attachments allowed beyond the existing twelve. The
agreements have been reviewed and are acceptable to staff and legal counsel. Staff
requests the Commission approve the Sprint Non-Exclusive Tower Attachment Lease
Agreements.
Daryl Thompson made a motion to approve the Sprint tower agreements. Al Nadeau
seconded the motion. Motion carried 3-0.
6.0 OTHER BUSINESS
There was no other business.
6.1 Staff Updates
Troy Adams distributed an article from Power magazine that featured an article recognizing
MMPA's Le Seuer BioEnergy Plant as one of the top renewable plants in the world.
Theresa Slominski reached out to the Commission to find out what their desire was in giving
back PCA's in December. She explained that we have the potential of giving back 5 mils,
approximately$120,000,in the month of December. There was further discussion.
Daryl Thompson made a motion to refund 5 mils to our customers in December. Al
Nadeau seconded the motion. Motion carried 3-0.
Theresa Slominski shared that the auditors were here yesterday and it went very smoothly.
They looked at all the usual things and had very few questions.
John Dietz asked Mark Fuchs if they had gotten in the squirrel protectors they had talked about
at the last meeting. Mark Fuchs responded that they did get them in and are currently trying out
a couple different sizes;they hope they'll work.
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Eric Volk added that letters soliciting water service line coverage have recently gone out to our
customers. Eric has fielded numerous calls from our customers regarding these letters from the
third party companies. John Dietz expressed his concern that customers may think that Elk
River Utilities is affiliated with these companies. He suggested including some type of bill
stuffier addressing this issue. Staff will include a few paragraphs in the upcoming newsletter and
will also post it on the website.
Tom Sagstetter shared that he had met with Waste Management and Elk River city staff to
discuss progress on the leachate treatment; everybody seems to be onboard. Waste
Management is continuing to talk with the County and hopes to have a preliminary engineering
plan by June 2015.
John Dietz shared that the city passed a storm water utility fee last night. Elk River Municipal
Utilities will be billing this utility service for the city.
6.2 Set Date for Next Meeting
The next regularly scheduled Commission meeting will be held on January 13,2015.
The Commission recessed the regular meeting at 4:18 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
6.4 Adjourn Regular Meeting
Al Nadeau moved to adjourn the regular meeting of the Elk River Municipal Utilities
Commission at 4:27 p.m. Daryl Thompson seconded the motion. Motion carried 3-0.
Minutes prepared by Michelle Canterbury.
John J. Dietz
Chair,ERMU Commission
Tina Allard
City Clerk
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