2.2 ERMUSR 07-14-2015 ELK RIVER MUNICIPAL UTILITIES
SPECIAL MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
June 16,2015
Members Present: John Dietz,Chair;Al Nadeau,Vice Chair;and Daryl Thompson,Trustee
ERMU Staff Present: Troy Adams,General 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 June 16,2015 meeting to order at 3:30 p.m.
1.1 Pledge of Allegiance
The Pledge of Allegiance was recited.
1.2 Consider Utilities Agenda
Troy Adams requested to move agenda item 5.2,2015 American Public Power Association
Lineworkers Rodeo Update to immediately follow the Consent Agenda.
Daryl Thompson moved to approve the amended June 16,2015 Utilities agenda. Al
Nadeau seconded the motion.Motion carried 3-0.
1.3 Introduction of New Employees
Troy Adams introduced Mike O'Neill who would be filling the Technical Services
Superintendent positon when Wade Lovelette retires the end of this month.Mike O'Neill shared
some information on his background and work experience. Troy Adams also introduced Jessica
Rahn and Theresa Olek the new Customer Service Representatives,and Geri Fournier the new
Purchasing Specialist. March Fuchs introduced Reid Nelson and Curt Wark as the new
Apprentice Lineworkers. The Commission welcomed the new employees.
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1.6 Recognition of Employee Achievements
Troy Adams announced that Wade Lovelette will officially be retiring the end of the month.
There will be a retirement celebration for him on Tuesday,June 30 from 2:00 to 4:00 p.m. in the
ERMU lunch room. The staff and commission thanked him for his 33 years of service. Mark
Fuchs announced that Matt Schwartz recently achieved his journeyman status;Matt was unable
to be at the meeting.
2.0 CONSENT AGENDA(Approved By One Motion)
John Dietz asked if Troy Adams could go over the Customer Deposit Policy. Troy explained
that the way we use NISC and the third party software to determine credit risk has evolved.
This is to update the policy to reflect how the software works,and to the actual practice we
follow to determine whether a deposit is required or not. There was further discussion.
Daryl Thompson moved to approve the Consent Agenda as follows:
2.1 May Check Register
2.2 May 12,2015 Previous Meeting Minutes
2.3 Financial Statements
2.4 Grant of Easement Agreement
2.5 Customer Deposit Policy
Al Nadeau seconded the motion. Motion carried 3-0.
5.2 2015 American Public Power Association Lineworkers Update
Troy Adams gave a recap of the 2015 APPA Lineworkers Rodeo that was held in
Sacramento, CA. We had one apprentice lineworker, Aaron White, compete at the event.
The apprentice competition was comprised of five parts which included a written test.
Aaron White was present to share his experience of the event. Aaron began by thanking
staff and the commission for sending him to the event. He shared that besides being fun, it
was really beneficial to see other people's techniques. He picked up pointers and learned
how to perform the task at hand more efficiently and safely. There was further discussion.
Included in the packet were photos which displayed the magnitude of the event. Troy
Adams and the commission thanked Aaron for going and representing ERMU at the event.
John Dietz encouraged those who attended the event to talk-it-up and get others excited
about competing as the rodeo will be held locally next year in Shakopee, MN.
3.0 OPEN FORUM
No one appeared for open forum.
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4.0 OLD BUSINESS
4.1 Vision Committee—100th Anniversary Planning Update
Tom Sagstetter gave an update on the 100th anniversary plans and touched on the points in his
memo.We are still working with local businesses to sponsor different portions of this
community celebration.Waste Management has committed to help with a$2,500 donation.
They will also have a Compressed Natural Gas(CNG)fueled truck on display as part of their
efforts.The vision committee has selected Center Cut Meats as the main food provider. In
addition,popcorn, slushies and cotton candy are being considered for additional snacking items.
Tom went over the marketing plan to promote the event,which included bill inserts,ads in The
Current,The Connector,Resource Update,the City of Elk River Parks and Recreation Catalog
and Cable Access Channel. The Commission inquired as to how we would be handling the
employees working and/or attending the event.Troy Adams explained that it would be paid time
for the employees,as they would be working/hosting the event for our customers. We are
encouraging all of our employees to be at the event.
4.2 ERMU Field Services Facilities Study
Eric Volk presented the four proposals we received from various architects for a needs
study/facility design. Staff has selected Kodet Architectural Group as the firm to complete the
space needs analysis for the field services facilities and is seeking commission approval to move
forward with them. Outside of being the firm with the lowest price,Kodet Architectural
received high praise from the references we contacted.
Another part of the study will be considering the steps we'll need to take to secure our property,
with consideration to the neighboring residential properties to the east of us.Residents who
could potentially be affected,Dan and Sue Seeger,Curtis and Ashle Horton and Chad Briggs
were present at the commission meeting. Troy Adams explained that even though it may be
premature,we invited those residents to be part of the conversation in helping find a solution to
the driveway situation. There was further discussion. John Dietz reached out to the residents
that were in attendance to see if they had any questions. There weren't any questions,but Sue
Seeger expressed that they would appreciate being kept in the loop and they're hoping for a
permanent resolution to separating the properties. Troy Adams encouraged the residents to
contact him if they had any questions or concerns,or to speak with any of the managers at the
plant if something immediate came up.
Al Nadeau made a motion to accept the bid from Kodet Architectural Group to complete
the field services facilities study for$15,500.Daryl Thompson seconded the motion.
Motion carried 3-0.
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4.3 Elk River Emergency Action Plan
In June 2014,the Commission approved an updated Elk River Dam Emergency Action Plan
(EAP). Since the dam EAP was approved last June,there have been a few changes based on the
recommendation of the Minnesota Department of Natural Resources;among them the addition
of an updated Dam Failure Analysis(DFA). Eric Volk explained that we also updated the
points of contact to reflect the current responsibilities pertaining to the dam,and the notification
list for emergency. The Commission received the updated Emergency Action Plan.
5.0 NEW BUSINESS
5.1 2015 American Public Power Association National Conference Update
Troy Adams thanked the commission for coming to the event to recognize and support
Jennie Nelson as she received her Rising Star Award. Troy Adams summarized on some
of the topics from the 2015 American Public Power Association(APPA)National
Conference; major themes were wages, development,turnover, and technology. The
closing session speaker was one of the highlights of the conference. Captain Gerald
Coffee, a Decorated Vietnam Prisoner of War, inspired the audience with his powerful
message of how he turned a seven year life-threatening experience into a journey of
personal growth. Next year's conference will be held in Phoenix, AZ.
5.3 2014 ERMU Water Quality Report
Eric Volk shared that the ERMU 2014 Water Quality Report has been added to our
website, and a notice that it's available will be sent out in this month's Connector and
monthly bill. Staff has once again opted to utilize the web version to satisfy the Minnesota
Department of Health(MDH)notification requirement. We're required by the MDH to
include specific text on water quality and health information. We also have the option of
adding further topics for customer education and awareness. Topics such as hydrant safety
and access, H.O.G. Chapter volunteers, water conservation, and wellhead protection and
well sealing were the primary topics that were added to supplement the report. John Dietz
wanted to know if we get many calls on our water quality. Staff responded.
Daryl Thompson made a motion to receive the 2014 Water Quality Report. Al
Nadeau seconded the motion. Motion carried 3-0.
5.4 Wage and Benefits Committee Update
On April 14, 2015 the Wage &Benefit Committee (W&BC)met to review some personnel
changes. During this review it was identified that adjustments were likely warranted for
the Customer Service Manager due to growth in responsibilities relating to the new billing
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software. Further evaluation was needed for review at a later date. On June 12, 2015, the
W&BC met to follow up and review the points for the position. Upon review of the
position points, it was determined that points in three of the five job evaluation system
categories should be adjusted. Troy Adams explained that with the addition of the new
billing software it drastically changed the workflow, expectations,responsibilities, and
authorities related to the position. Troy pointed out some examples on how the position
has evolved to having a much higher level of responsibility and authority than what it was
initially built it to do. The review of these changes in this position, applied with the job
evaluation system,result in a change in points shifting from a pay grade five in the
manager pay plan group to a pay grade seven. The W&BC recommended the Commission
approve adjusting the Customer Service Manager pay grade to level seven of the manger
pay group.
At a previous commission meeting the commission requested staff look into the
commission pay level. Staff received and reviewed 2014 data collected by Minnesota
Municipal Utilities Association. The data included information from Shakopee Public Utilities,
a municipal utility very similar to ERMU. The Shakopee has commission compensation
structured differently than other commissions with levels related to responsibility. The W&BC
discussed conducting a more detailed survey of the Minnesota Municipal Power Association
utilities,which includes Shakopee,to determine if there is justification to propose changes to the
current compensation levels. If determined that a change is justified,the W&BC would bring
that back for commission consideration in the budgeting process with council approval needed
prior to 2016.
A request was made by an employee to evaluate how certifications are compensated for.
Specifically,ERMU employees a master electrician and has registered that license. The license
is required when ERMU works on the ball field lights or street lights,which are behind the
meter,for the City of Elk River. The license is not used to take market share away from local
electricians. This employee is not being compensated for the use of the license but the fees
associated with maintaining the license are being paid for by ERMU. The license is not a
requirement of the position either. However,this is something that ERMU needs to have in
house. There was further discussion.
The W&BC agreed that there is justification to further evaluate the request regarding
compensation for the master electrician license,review the apprentice programs as a part of the
minimum requirement for the position,and review the market. The W&BC will bring the
results to the commission at a future date. There was further discussion.
Daryl Thompson made a motion to approve adjusting the Customer Service Manager
pay grade to level seven of the manager pay group effective June 16, 2015. Al Nadeau
seconded the motion. Motion carried 3-0.
6.0 OTHER BUSINESS
6.1 Staff Updates
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Troy Adams reminded the commission that the Minnesota Municipal Power Agency(MMPA)
Annual Summer Meeting will be held on the evening of Tuesday,July 28,2015 at the Le Sueur
Country Club located in Le Sueur,Minnesota.
Mark Fuchs had nothing additional to add. John Dietz shared that he recently attended a
ballgame at the Orono ball field and that when it came time to pay tribute during the National
Anthem there wasn't an American Flag present.Upon looking into why some of the ball fields
in Elk River don't have an American Flag,he found it was due to not having the proper lighting
for the flags. John wanted know if there was anything ERMU could do to help provide the
necessary lighting. Troy Adams stated that per the current policy,we could provide the labor
free of charge and the city would need to pay for the cost of the materials. Daryl Thompson
suggested they consider solar. There was further discussion. Cal Portner will suggest this topic
be added to a future Park Board agenda.
Wade Lovelette had nothing additional. John Dietz wanted to know how the security business
was doing. Wade shared that it was doing very good. There was further discussion.
Eric Volk wanted to emphasize one thing from his staff update.We applied,and were approved,
for a fluoride variance that will allow us to feed fluoride at a much lower rate. He estimated that
we'll use about half as much as we used to use.
6.2 Set Date for Next Meeting
The next regularly scheduled Commission meeting will be held on July 14,2015.
6.3 Adjourn Regular Meeting
Daryl Thompson moved to adjourn the regular meeting of the Elk River Municipal
Utilities Commission at 4:35 p.m. Al Nadeau 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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