05-12-2015 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
May 12,2015
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;
Tom Geiser,Assistant Electric Superintendent
Others Present: Cal Portner,City Administrator;Peter Beck,Attorney
1.0 CALL MEETING TO ORDER
John Dietz called the May 12,2015 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 additions or corrections to the agenda.
Daryl Thompson moved to approve the May 12,2015 Utilities agenda. Al Nadeau
seconded the motion.Motion carried 3-0.
1.3 Recognition of the ERMU Tom Bovitz Memorial Scholarship Recipient
Michelle Canterbury introduced Taylor Odegard who was the recipient of the ERMU"Tom
Bovitz Memorial Scholarship." The Commission congratulated her on the essay she wrote.
1.4 Introduction of New Employees
Eric Volk introduced Dave Ninow as the new Water Operator and March Fuchs introduced
Jeremy Lindberg as the new Bore Rig Operator. The Commission welcomed the new
employees.
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Regular meeting of the Elk River Municipal Utilities Commission
May 12,2015
1.5 Recognition of Employee Promotions
Theresa Slominski introduced Michelle Lee Anderson and told the Commission that she was
internally promoted to the Billing Specialist position. Tom Sagstetter introduced Jolene Fenn-
Jansen as an internal promotion to the Key Accounts Specialist position. The Commission
congratulated the employees on their promotions.
1.6 Recognition of Employee Achievements
Troy Adams announced that Eric Volk passed his Minnesota Department of Health examination
required for certification as a Class A Water Supply System Operator. Eric Volk introduced
Mike Langer and announced that he just recently received his Public Works Certificate endorsed
by the Minnesota Chapter of the American Public Works Association. The Commission
congratulated the employees on their achievements.
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 April Check Register
2.2 April 14,2015 Previous Meeting Minutes
2.3 Financial Statements
2.4 Waiver Electing Not to Waive Statutory Tort Limits for Liability Insurance
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—100th Anniversary Planning Update
Tom Sagstetter gave a brief update on the 100th anniversary plans.The celebration has been
scheduled for Thursday,August 27th from 4:00 to 8:00 p.m. The band Skitzo Fonik,a diverse
band that plays a variety of classic and new music,has been booked.The committee is still in
the process of evaluating sites. The initial plan was to have the event at the power plant,but due
to safety, space and parking challenges the committee is considering holding the event at the
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Regular meeting of the Elk River Municipal Utilities Commission
May 12,2015
Sherburne County Fairgrounds.The food options are still being researched. The committee is
steering towards pulled pork and hotdogs with sides. In addition to the meal,there may be some
additional snack items such as popcorn,snow cones and cotton candy for the kids. Community
Education had offered to bring some bouncy houses and outdoor games for kids and adults to
play. ERMU staff will be providing tours of the diesel power plant and are working on a shuttle
service to take participants to power plant and water facilities. John Dietz inquired as to why we
weren't having the event at the power plant. Staff responded. The committee is also working
with local businesses to sponsor different portions of this community celebration.John Dietz
suggested we invite the city council to the event.
5.0 NEW BUSINESS
5.1 First Quarter Delinquent Items
Theresa Slominski presented the delinquent items for the first quarter. Theresa explained
that previously we were able to provide a report individually identifying each of the
customers' written off. This report was not the ideal report to present because of its
volume and limitations of customer data per State Statute. We are still working with NISC
to create a process for writing off accounts that separates those for assessment in the fall,
and those submitted for revenue recapture. In addition to that,we're working with NISC to
create reports for internal use and commission presentation. John Dietz had some questions
on the first quarter delinquent items. Staff responded.
Al Nadeau made a motion to approve the 2015 first quarter delinquent items. Daryl
Thompson seconded the motion. Motion carried 3-0.
5.2 First Quarter Performance Metrics and Incentive Compensation Policy Results
Theresa Slominski presented the first quarter results for the Performance Metrics and
Incentive Compensation Policy Results. She reviewed the categories and informed the
commission that we were still waiting on the final results of the water quality standards.
She provided the safety, reliability and quality results noting that the CAIDI was the only
one not on target at 176.48 minutes. This was due to a longer than usual outage we
experienced when a vehicle hit one of our guy wires. John Dietz had a question on how the
employee turnover numbers could be on target after having to hire so many new people.
Troy Adams explained that we don't count people that were terminated or retire. We have
only had one employee that has given notice and that will be reflected in the second quarter
numbers. There was further discussion.
5.3 2014 Annual Report
Troy Adams presented the 2014 Annual Report. The annual report is a good marketing tool
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to be used with economic development. Troy asked the managers to provide some bullet
points on the things they accomplished this past year.
Tom Sagstetter—For energy efficiency we issued over 3,100 residential rebates totaling
$66,000 rebate dollars, and 45 commercial rebates totaling $107,000 in rebate dollars.
Tom explained that the savings the residential customers will see by making these changes
will be 507,000 kWh, or about$64,000 in equivalent energy costs for 2015, and the
commercial customers will save 1,360,000 kWh and approximately 328 kW, equating to
approximately$165,000 in annual energy savings. Tom shared that for the low income
segment ERMU met their spending requirement of over$20,000. The bulk of the spending
was to CAER Food Shelf in the amount of$12,000 for upgrading their freezers and
refrigerators. For Energy City,we provided tours to over 520 visitors and worked with city
staff to participate in Green Step Cities to achieve a level 3 status. For economic
development we worked with the city and achieved a certified shovel ready site with
DEED. We also worked with a commercial property owner to put together a USDA grant
that could possibly bring a solar PV installation to downtown Elk River.
Eric Volk—The big project for 2015 was the addition of 2,500 feet of watermain along
County Road 13 (Twin Lakes Road). The new watermain will aid in the distribution of an
additional 1,125,000 gallons per day. The water department did Sodium Permanganate
upgrades;which involved switching from a powder to a liquid. They also began working
on Fluoride upgrades. The first year of the private hydrant program was a success. There
are a total of 214 private hydrants, of which 163 of those are on our program. Eric shared
that he is very proud of his water operators for all the work and repairs they were able to do
themselves versus contracting it out; he estimated it saved approximately $60,000. The
department also completed their GIS mapping for the water distribution system. John
Dietz had a question how much it cost to switch from a powder to a liquid. Staff
responded.
Theresa Slominski—On the customer service side we added a new Customer Service
Representative in anticipation of the potential Connexus acquisition. We had the software
conversion which we'll reap further benefits from of as we get more comfortable with the
system. Our customers have seen the immediate benefit of SmartHub and being able to
view more information about their account online. As we move forward with mobile
workforce,we'll be able to have more efficiency on the backend so that we can provide
even better customer service. On the financial side, a few big items were the refunding of
the bonds and the Aa3 rating Moody's assigned to us. Troy Adams added that the
Commission's decision to look at a new wholesale power provider was a legacy decision.
The Commission had a few billing questions. Staff responded.
Mark Fuchs—Some of the bigger projects were rebuilding Baldwin Avenue and Line
Avenue by replacing rear lot line overhead with front lot line underground; built feeder 74
out of our west substation site;rebuilt an overhead line on Hwy 169, north of County Road
33, in anticipation of what we'd be taking over on the south side; rebuilt River Ranch in
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Regular meeting of the Elk River Municipal Utilities Commission
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Otsego replacing rear lot line overhead with front lot line underground; added service to
some existing lots in Prestigious Woodland Hills Second Addition; tied feeder 71 and 42
together; rebuilt part of Industrial Park off of County Road 1 and added a loop feed on the
primary side; installed new services for Aggregate Industries and Barton's Gravel; and
installation of LED lights on Business Center Drive,Joplin and Orono Parkway. Ongoing
projects included working on rusty junction boxes, replacing or removing ones no longer
needed; changing out fuse pads and switchgear; and tree trimming. There was further
discussion.
Wade Lovelette—Some of the highlights for the department in 2014 were promoting one
locator to a lead meter technician;performing infrared testing to proactively detect
problems we could fix before they caused potential outages; dredged the cooling pond for
the generators; became a second time recipient of the RP3 designation; installed a total of
94 new security systems, including two out of state; worked on the Emergency Action Plan
for the Lake Orono Dam; and began LTC upgrades in the sub-stations. Wade also wanted
to share that they were able to get 50%of our territory mapped out on the GIS system;this
helped make great strides in the mapping. With that, we were able to gather some statistics:
we have 425 miles of electric line with 82%of that being underground. There was further
discussion.
John Dietz suggested we present and/or provide a copy of our annual report to the city
council.
5.4 ERA/1U Field Services Facilities Study
Eric Volk shared that the 2015 annual budget included $200,000 for facilities
improvements at the field services building. At the direction of the Commission we started
looking for ways to secure our property and move all of our equipment indoors. The first
step is determining what facilities we'll need to satisfy our storage requirements, and the
second step will be building a driveway for our neighbors to the east.
We've started seeking proposals from architects for a space needs study. The study will
incorporate what we currently have and provide some options on how we can build onto
that with the vision that we can do more in phases. In regards to the driveway, Eric Volk
informed the Commission that we've already discussed our plans with the City of Elk
River's Environmental Technician, and she's willing to work with us so we stay compliant
with the wetland restrictions. There was further discussion. Staff will bring back the space
needs study proposals to the next commission meeting.
6.0 OTHER BUSINESS
6.1 Staff Updates
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Regular meeting of the Elk River Municipal Utilities Commission
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Troy Adams gave a Connexus update.The week of September 21 we're looking at acquiring the
residential customers in area 1,and all the commercial customers the week of October 12.
Based on just this part of the acquisition,ERMU is going to experience 11%customer growth in
one month.With the five year roll out plan,we're looking at a total of 20%customer growth.
These percentages do not take into account the additional growth that will happen in the Natures
Edge Business Park. He shared that they have a meeting scheduled with Connexus tomorrow to
go over some of the details on the data.
Troy Adams also shared that the 2015 American Public Power Association(APPA)National
Conference, scheduled for June 5-10,was quickly approaching. Troy will be teaching at the
conference and Jennie Nelson will be receiving her Rising Star Award.The Commission
wanted to know if you needed to attend the entire conference or if you could just go one day.
Staff will look into that option and get back to the Commissioners. The deadline for registration
is May 15,2015.
Theresa Slominski informed the commission that one of our customers is contesting the filing of
his past due amount with Revenue Recapture.Theresa explained the procedure.The customer is
entitled to a hearing at one of our commission meetings where he'll have the opportunity to
contest his past due balance. There was further discussion. A letter was sent to the customer
explaining the process, if we hear back from him,the hearing could potentially happen at our
June commission meeting.Theresa will keep the Commission posted and will give further
details should the customer want to proceed forward with the hearing.
Theresa had some good news to share.With our health insurance that we have through Resource
Training&Solutions,we participate in a co-op to receive reduced insurance rates. Resource
Training&Solutions has a very advanced wellness program that we participate in.After
submitting an application for an award,we were notified that we would be receiving their Well
Workplace award in the fall of 2015 for the work we did in 2014. Efforts of Michelle
Martindale and Angela Hauge,who serve as our representatives on the committee,will be
recognized at an awards banquet this fall.The Commissioner's will be invited to attend the
banquet as well.
Peter Beck shared that he had looked into the timing and process for the Commission to
consider an increase in compensation. The process is for the city council to set the salary for the
Commission.Peter suggested the Commission request staff to research what other MMUA
members are doing for Commission compensation. Based on the information,the Commission
could make a request for consideration to the city council. Troy Adams recommended that we
add an annual review of Commission compensation to the Wage and Benefits Committee scope
of work;then when deemed appropriate,the Commission would make a request to city council.
Troy Adams suggested getting that process added to the policy and bringing the results of the
compensation survey back to the Wage and Benefits Committee for review. Peter Beck stated
that when it got to the city council level that John Dietz may want to abstain from the vote.
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Regular meeting of the Elk River Municipal Utilities Commission
May 12,2015
Tom Sagstetter gave a sample of the LED's he purchased from the Elk River Robotics club.
This will be one of the giveaways at our 100th Anniversary Celebration.
Eric Volk shared some information he received from the Minnesota Department of Health
(MDH)on effective microbial control strategies for main breaks and depressurization.What this
means is if we have a big main break that causes widespread depressurization,a boil water
advisory would be issued and bacteriological testing would be required.Eric just wanted to give
the Commission a heads up in case this was to ever happen to us during non-business hours and
they received phone calls from residents regarding the matter.We would also be sure to inform
the Commissioners before issuing a boil water advisory.
6.2 Set Date for Next Meeting
The next regularly scheduled Commission meeting will be cancelled due to scheduling conflicts
and a special meeting will be held on June 16,2015.
6.3 Adjourn Regular Meeting
Al Nadeau moved to adjourn the regular meeting of the Elk River Municipal Utilities
Commission at 4:48 p.m. Daryl Thompson seconded the motion. Motion carried 3-0.
Minutes prepared by Michelle Canterbury.
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Tina Allard
City Clerk
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Regular meeting of the Elk River Municipal Utilities Commission
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