05-08-2001 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
MAY 8, 2001
Members Present: George Zabee, President; James Tralle, Vice Chairman; John Dietz, Trustee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; David Berg, Water
Superintendent; Patricia Hemza, Office Manager
ERMU employee present: Richard Wagner
Others Present: Patrick Klaers, City Administrator; Jeff Gongoll
1. Call meeting to order at 4:00 P.M.May 8. 2001
2. Consider Utilities Agenda
James Tralle moved to approve the Utilities Agenda for May 8, 2001, with one additional item from
Bryan Adams, to be discussed under Other Business. John Dietz seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
George Zabee asked to have the April Minutes amended under 5.3 Location for Proposed Water
Tower. The reason for the nae vote by George Zabee is as follows: George Zabee objects to the purchase of
land, because City currently owns land in Hillside Park that is a better location economically and technically,
than the land voted on.
James Tralle moved to approve the Consent Agenda as follows, with the addition to the April, 2001
Minutes.
April Check Register
Financials
April 10 Minutes
John Dietz questioned two items on the Check Register, and four items in the Financials.
John Dietz seconded the motion. Motion carried 3-0.
5.1 Review and Consider Water Tower Purchase Agreement
Bryan Adams up-dated the Commission on the Vacant Land Purchase Agreement between ERMU
and Rick Foster for the Water Tower proposed site. Changes in wording regarding the Date of Closing were
discussed. Closing to hinge upon the wording regarding the final plat approval. The status of the plat
approval was discussed with input from the City Administrator and John Dietz. Item 21, c, regarding the
cost to the ERMU for clearing and grubbing the parcel, and e, the deferral of the sewer and water district
were discussed,regarding the proposed wording changes. It is the consensus of the Commission that no
agreement may be finalized until resolution of plat approval has taken place.
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Regular meeting of the Elk River Municipal Utilities Commission
May 8, 2001
James Tralle moved to table the signing of a Purchase Agreement to acquire land for the proposed
Water Tower. John Dietz seconded the motion. Motion carried 3-0.
5.2 Update Miscellaneous Utility Projects
Miscellaneous Utility Projects, and their progress were reviewed with the Commission as follows:
a .Electric Line Truck
b. 3/4 Ton Pick-up
c. Communication Study with Dukor&Associates
d. Radon removal for Water Production facility#2
e. Perkins area water main project
f. Construction Well# 7
g. Water Tower Site
h. 2001 Territory Acquisition
i. Main Street Sidewalk and Electric Conversion Project
j. Hiring of 3 new employees
k. Norfolk/Morton/Lowell Electric Conversion, and other miscellaneous electrical projects
1. Other Projects that are out for bids
5.3 Review and Consider 2001 Employees Compensation Options
Bryan Adams reviewed the percentage approved at the April, 2001 meeting for the linemen. The
salary surveys, pay equity compliance reports, and four options were further reviewed. George Zabee asked
Bryan Adams for his recommendation, with the response that either Option 2 or Option 4 would be
acceptable. John Dietz asked Pat Klaers what the City Employees received, and he advised that it was 3%.
James Tralle moved to approve Option 4. George Zabee seconded the motion. Motion passed 2-1,
John Dietz voting nae.
A request from Pat McBrady Meter Reading for an increase in his contract for meter readings, and
disconnects was reviewed and discussed. Pat McBrady notes that it has been three years since the last
contract negotiation and two years since the last increase in charges. An increase of$.03 per meter, $.75 per
readout, and $2.50 per disconnect is requested at this time. He cites the increases in number of meters to be
read, the need for more employees on his part, and the problems concerned with disconnects as his reasons
for an increase. Staff views his request as reasonable. Examples of the problems encountered with meter
reading, and the alternatives to a Contract Meter Reading Firm were discussed. Commission directed Staff
to return with in-house costs for meter reading.
James Tralle moved to approve the request from McBrady Meter Reading for the increases of$.03
per meter, $.75 per read-out, and $2.50 per disconnect. George Zabee seconded the motion. Motion carried
2-1. John Dietz voting nae.
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Regular meeting of the Elk River Municipal Utilities Commission
May 8, 2001
Operational employees,who are on-call, are required to live within an eight mile radius of the power
plant for response time. Staff recommends changing the 8 mile radius to a 10 mile radius of the power plant,
excluding the area south of I-94, and including the entire townships of Big Lake, Orrock, and Livonia.
Distance versus response time was discussed with Commission and Staff. John Dietz objects to affordable
housing being used to extend the area, and states that he is in favor of looking at response time,rather than
distance.
James Tralle moved to table the question of distance from the Power Plant for On-Call people until
comparisons with the Fire Department policy of response time is reviewed and compared. George Zabee
seconded the motion. Motion carried 3-0.
A suggestion from Staff regarding interest free loans to employees for the purchase of home
computers was presented. The effort would be to encourage all employees to develop and improve their
computer skills. John Dietz directs Staff to check with the Auditors on the legality of the plan, and return to
a future meeting with the answer.
5.4 Update Miscellaneous Issues from April 2001 Commission Meeting
John Dietz asked Staff to address the following three items.
1. A formal policy for payment of contractor charges, allowing for approval of the project. Bryan
Adams responded with the General Instructions for Technical Specifications, and policies for
payment.
2. Walk in customers at our office location on 322 King Avenue were documented by Staff for 18
days, from April 9, 2001 through May 2, 2001. The results were reported, broken down by
counter, drop box, new customer registrations, contractors, and customer arrangements. Jeff
Gongoll spoke about the need for the downtown location of the Utilities. Further discussion
followed, with no action taken.
3. Prices for Magnetic versus Vinyl signs for vehicles were reviewed, with the Magnet being the
least costly.
6.1 Review and Consider Bids for Ridges of Rice Lake
A formal bid process is being used to install the electrical distribution system for Ridges of Rice
Lake due to costs exceeding $50,000.00. Staff requests permission to award the project to the lowest
responsive bidder. Should problems arise, Staff will return to the Commission for resolution. Questions of
legality in the authorization of Staff were discussed. Staff is directed to check with the Auditors.
James Tralle moved to authorize Staff to award the project to the lowest responsive bidder for
installation of the electrical distribution system for Ridges of Rice Lake, pending approval of the Auditors.
John Dietz seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
May 8, 2001
6.2 Consider Engineering Proposal for Water Production Facility#7
The Engineering Proposal for Water Production Facility#7 from Howard R. Green Company was
reviewed. Staff recommends authorization of the proposal. A brief question and answer period followed,
with George Zabee asking for clarification of what exactly is done by Howard R. Green.
James Tralle moved to accept the Engineering Proposal for Water Production Facility#7 from
Howard R. Green Company. John Dietz seconded the motion. Motion carried 3-0.
Other Business
Bryan Adams gave a Legislative Update to the Commission with special attention to the issues that
will impact the ERMU directly. Those programs deal with renewable energy, conservation programs,
customer protection (budget billing), and safety and service standards.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be Tuesday,
June 12, 2001.
Adjournment
President Zabee adjourned the meeting of the Elk River Municipal Utilities Commission at 5:40 P.M.
Respectfully submitted,
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Patricia Hemza
Office Manager