04-08-2003 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
April 8, 2003
Members Present: John Dietz, President; James Tralle, Vice Chair; Jerry Takle
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; David Berg, Water
Superintendent; Patricia Hemza, Office Manager
Other Employees Present: Wade Lovelette, Mark Fuchs, Trevor Gwiazdon, Richard Wagner
Others Present: Lori Johnson, Bob Pearson, City of Elk River; Steve McDonald, Auditor
1. Call meeting to order April 8, 2003
President John Dietz called the April 8, 2003 meeting to order.
2. Consider Utilities Agenda
John Dietz moved to approve the Utilities Agenda for April 8, 2003, with an additional item from
Bryan Adams, to be discussed under Other Business. Jerry Takle seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
James Tralle moved to approve the Consent Agenda as follows:
March, 2003 Check Register
March 18, 2003 Minutes
Financials
Jerry Takle seconded the motion. Motion carried 3-0.
5.1 Staff Up-dates (Verbal)
Glenn Sundeen, Line Superintendent, reported on the progress of construction project. He also discussed
tree trimming, and the need for more extensive trimming in the area acquired from Connexus. He reported
that more time than usual has been spent on street light maintenance. John Dietz asked Glenn Sundeen if the
frost is out, to facilitate underground construction. Glenn responded that it is.
David Berg, Water Superintendent reported on the Hillside Tower bidding process for cleaning, and also
reviewed the metering updates being done.
5.2 Review& Consider Phone System
Lori Johnson, and Bob Pearson appeared on behalf of the City of Elk River to answer any questions
about the progress of awarding bids for the new phone system. Bryan Adams explained to the Commission
how the system would work for the Utilities in connection with City Hall, and that the security, and
reliability concerns were resolved. The cost of the Utility portion of the phone system is estimated at
$19,633.90. To secure the quoted pricing, the Utility would need to purchase the system at this time, for
installation in late winter, 2004.
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Regular meeting of the Elk River Municipal Utilities Commission
April 8, 2003
James Tralle moved to authorize the purchase of the Inter-Tel phone system. Jerry Takle seconded
the motion. Motion carried 3-0.
5.3 Review Underground Electric Construction Projects
Sherburne County is planning to rebuild County Road 1 from the Country Club north in the 2005
time frame. The ERMU budget scheduled an underground feeder on County Road 1 in 2003. It is
recommended that the project be delayed to 2005. Rebuild of an existing overhead line on County Road 13
to support acquisition areas 14, 16, & 17 is scheduled for 2004, but consideration should be given to doing
the project in 2003 in replacement for the County Road 1 project. Due to right of way issues, it is believed
that a better solution may be to construct a portion of the line to underground. Staff will return to the
Commission with a recommendation after design and cost estimates are completed.
6.1 Review& Consider 2002 Audit
Steve McDonald, Auditor from Abdo, Eick&Meyers appeared to present, and discuss the 2002 Audit
of the Elk River Municipal Utilities. The Management letter provided the main source of discussion,noting
no irregularities. A summary of the Utilities' operations, and an analysis of the Electric and Water funds
was reviewed. Questions from Staff concerned cash reserves, net income, and long term debt. John Dietz
asked Steve McDonald if the Utility would be prepared to comply with GASB, the required accounting, in
the coming year. It was explained that the framework is in place, that the only thing needed is a formal
policy. John Dietz requested that Staff use the same policy that the City uses. John Dietz thanked Steve
McDonald for his appearance at the Commission meeting.
James Tralle moved to receive and file the 2002 Audit. Jerry Takle seconded the motion. Motion
carried 3-0.
6.2 Review Wage Request from ERMU Employees
The request for annual salary and benefit adjustment from the operational employees was received,
and considered. Bryan Adams reviewed the salary and benefit surveys, as well as the request for an
employer matched contribution to an additional retirement plan. The Commission discussed the
information,but chose to continue the matter to the next Commission meeting.
John Dietz questioned Staff on the present policy for employee contributions to the health plan. He
indicated that he would be in favor of separating family, and single coverage.
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Regular meeting of the Elk River Municipal Utilities Commission
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6.2 Review Meter Reading Costs
The Elk River Municipal Utilities contracts our meter reading functions to McBrady Meter Reading,
who has done our meter reading since 1988. Mr. McBrady has requested an increase in payments made to
his Company for services. Bryan Adams presented a history of meter reading costs, annual costs, and a
survey of other utilities costs. The possibility of hiring additional employees for meter reading was
discussed, with costs compared to contracting the task. Commission noted that they feel that McBrady
Meter Reading does an excellent job, and prefer to stay on a contract basis at this time.
James Tralle moved to grant the requested increase in compensation for contract meter reading
services from McBrady Meter Reading. James Takle seconded the motion.
6.3 Review Safety Program Evaluation
A letter from Dave Berggren, MMUA Regional Safety Coordinator was presented to Commission.
The evaluation was positive for employee/management actions and reactions, as well as a review of OSHA
and DOT Safety compliance. Jerry Takle noted that he feels safety is a very important part of a Utility.
John Dietz asked if the City of Elk River received a similar letter, and if so, would like to see it.
Other Business
Bryan Adams briefly updated the Commission of legislative issues.
The Elk River Municipal Utilities Commission then moved from the Utility Offices, to the new Utilities
Offices being constructed at City Hall.
6.4 Tour of New Administration Building at City Hall
Bryan Adams led a tour of the new Utilities Offices at City Hall, explaining the site.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
May 13, 2003, at 4:00 PM, in the Utilities Offices.
President John Dietz adjourned the regular meeting of the Elk River Municipal Utilities Commission
at 6:00 PM.
Respectfully submitted
43rPatricia Hemza
Office Manager