2.2. ERMUSR 09-08-2015 ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
August 11,2015
Members Present: John Dietz,Chair;Al Nadeau,Vice Chair;and Daryl Thompson,Trustee
ERMU Staff Present: Theresa Slominski,Finance and Office Manager;
Mark Fuchs,Electric Superintendent;
Eric Volk,Water Superintendent;
Mike O'Neill,Technical Services Superintendent;
Tom Sagstetter, Conservation&Key Accounts Manager;
Michelle Canterbury,Executive Administrative Assistant;
Tom Geiser,Assistant Electric Superintendent
Others Present: Peter Beck,Attorney
1.0 CALL MEETING TO ORDER
John Dietz called the August 11,2015 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 changes to the agenda.
Daryl Thompson moved to approve the August 11,2015 Utilities agenda. Al Nadeau
seconded the motion.Motion carried 3-0.
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 July Check Register
2.2 July 14,2015 Previous Meeting Minutes
2.3 Financial Statements
2.4 Second Quarter Utilities Performance Metrics Score Card Statistics
2.5 Resolution Acknowledging Contribution from Waste Management
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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 Electric Service Territory
As staff prepares for the acquisition of Connexus customers this fall,there are numerous areas
that will be discussed with the Commission.At this point of time,the key points of discussion
are: electric rates,integration of electric utility infrastructure,and customer data migration.
Electric rates—Tom Sagstetter shared that we've received some phone calls from residential
customers that will be affected by the takeover. The bulk of calls have been in regards to the
timing and if their current budgets and online banking will carry over. ERMU will be sending a
letter sometime next week to customers in the 1A area. We'll follow that up with a load
management letter that will help to answer any questions they may have going from a Connexus
program to ours. Tom explained that we've identified three electricians that we'll be working
with to help convert some of the homes over. There was further discussion.
Integration of the utility infrastructure—John Dietz wanted to know what was involved with
switching them over. Mark Fuchs explained that there would be a short outage while they open
up the three phase line and we match their rotation. Tom Sagstetter added that they'll take
another outage when we go out and physically change their meter out. ERMU is working on a
welcome packet,including a free LED lamp that we can leave on their door. There was further
discussion.
Customer data migration—As a majority of the customers in lA are currently our water
customers,we already have them in our system.We'll be doing a mail merge and sending our
first letter out to them next week. John Dietz wanted to know if we would be acquiring the
different areas at the same time each year. Staff responded.
4.2 Vision Committee—100th Anniversary Planning Update
Tom Sagstetter gave an update on the 100th anniversary plans. Staff requested to close the office
one hour early on August 27th as they believe there will be a good number of customers that will
be at the event promptly at 4:00 p.m. By closing at 3:30 p.m.the office staff would be able to
change clothes,drive to the event,and finish setup before the gates open. If approved,the early
closure would be posted on the entrance of ERMU and the website. The information would also
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be communicated to customers through the ERMU phone greeting. There was further
discussion.
Al Nadeau made a motion to close the office at 3:30 p.m.on Thursday,August 27th in
preparation for thel00th anniversary. Daryl Thompson seconded the motion. Motion
carried 3-0.
The commissioners were given a copy of the completed history book. Tom Sagstetter explained
that the current plan was to also provide a complimentary copy to each employee. Staff was
looking for discussion on the possibility of providing past commissioners,and employees that
left in good standing,with complimentary copies as well. If approved,ERMU would offer a
copy to those individual that were easy to locate and didn't cause a burden on staff to do so.
There was further discussion.The commission was in consensus to provide a copy to past
commissioners or their families,and to Wade Lovelette who just retired. John Dietz offered to
track down the individuals,and families of the deceased commissioners,to get the information
needed to mail them out.
John Dietz made a motion to try to provide a copy of our history book to all past
commissioners or their families.Al Nadeau seconded the motion. Motion carried 3-0.
5.0 NEW BUSINESS
5.1 2015 Budget Schedule; Travel and Training; Dues, Subscriptions, and Fees
Theresa Slominski gave an overview of the budgeting process schedule and presented the
Travel and Training budget which has a 5.4% increase over the prior year. She explained
that staff took the time to make sure that each of the departments were balanced taking into
consideration the amount of employees they have. The commission had a few questions.
Staff responded.
The Dues, Subscriptions, and Fees budget has a 44.9%increase, reflecting various known
and projected increases for 2016. Theresa presented the proposed budget and explained that
it had very little change from the prior year except for two line items; the SCADA OSI Fee
and the Software Support. Theresa distributed a handout with a breakdown of the monthly
fee we pay for software support and went over each line item. There was further discussion.
5.2 Petition for Water Main Looping and Extension Variance
Eric Volk shared that13296 Mississippi Road is in the process for development. The lot is
going to be split into three different lots. The developer,Alex Bodnar, is required to loop
the water main when it's installed. The plan to loop the watermain from Gary Street to
Joplin Street has already been approved by city council. Troy Adams and Eric Volk were
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approached by the developer to see if ERMU would consider paying for some of the
installation costs to complete the loop. John Dietz asked what the past practice has been
for this. Eric Volk explained that in the past ERMU has not paid for any installation of new
water main in a development. He went over the policies that were in place requiring the
installation of loops and who should pay for them. Eric gave some examples of the most
recent cases where developers have paid 100% of the water main installation cost.
Alex Bodnar was at the meeting to request a petition for water main looping and extension
variance; Mike Bodnar was also present. Alex explained that they purchased the property
with the anticipation of splitting it up into 4 lots under the simple plat procedure with the
City of Elk River. Because the property had been waived from platting when the Heritage
Park was developed, they needed to name it as a subdivision. Since then, it has morphed
from a lot split into a development. Alex Bodnar referred to section 8.2.4 recommended
standards from the Great Lakes Upper Mississippi Board and section 3400 of the City of
Elk River's watermain design standards,noting that the City of Elk River holds a higher
standard for dead-end water main looping than the adopted standards of the Great Lakes
Upper Mississippi Board, and based on what the city requirements are, it makes it
impractical to do so.
Alex Bodnar requested the commission consider three options. The first option would be
for the utilities to run the mains under the justification to reduce head loss, and the
developer would pay for the hookups. He explained that it wouldn't be setting precedence
with other developers because this is a simple plat subdivision, or lot split,not a
development. The second option would be that the developer would handle the contracting
of the project and would be waived from hookup fees for doing so. The third option would
be supporting a variance for a zoning change for well and septic for the three proposed lots.
There was further discussion.
Peter Beck added that the subdivision ordinance does require that the sub divider bring the
utilities to the property if it's in the urban services area. There would need to be some
extraordinary hardship factors to vary from that ordinance requirement; if we even could.
Based on prior practices, one option the council and commission may wish to consider
would be allowing the utility costs to be assessed; potentially including the hookup fees.
Alex Bodnar inquired as to if and when the utilities would be looking to connect and
eliminate that dead-end loop.Staff responded. Discussion followed on the size
requirements of the water main for this project.
The commission stressed the importance of not setting a precedent, and recommended the
developer meet with Troy Adams, EricVolk, and Peter Beck to discuss some options, and
that staff come back with a recommendation for the commission.
6.0 OTHER BUSINESS
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6.1 Staff Updates
Daryl Thompson asked Theresa Slominski where we were at in the hiring process of the
Accounts Payable and Payroll Specialist position. Theresa shared that we interviewed three
applicants for the position and extended an offer that was accepted. The new person is
tentatively scheduled to start on August 24th pending the background check and pre-employment
drug screening.
Eric Volk shared that Mike Langer will be receiving the Rising Star award at the Minnesota
Municipal Utilities Association(MMUA) Summer Conference.Eric also pointed out the
temperature and rainfall graphs included with his staff report and explained that they aid in
showing how the weather affects our electric and water sales.
Tom Sagstetter said that after their meeting with Greater MSP and a possible data center
customer they received some follow-up questions. Tom is working with city and utility staff to
gather the data to answer their questions.
6.2 Set Date for Next Meeting
The next regularly scheduled Commission meeting will be held on September 8,2015.
6.3 Adiourn Regular Meeting
Al Nadeau moved to adjourn the regular meeting of the Elk River Municipal Utilities
Commission at 4.43 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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