05-11-1999 ERMU MIN - AMENDED ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICE
MAY 11, 1999
Members Present: President, James Tralle; Vice Chairman, John Dietz; Trustee, George
Zabee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
Robert McCartney, Water Superintendent; Patricia Hemza, Office Manager
Others Present: Pat Klaers, Elk River City Administrator; Lori Johnson, Elk River
Assistant City Administrator; Darrell Mack, Sewer Superintendent
Elk River Municipal Utilities Employees Present: Wade Lovelette, Dennis Clifford,Art
Gatchell, Mike Thiry, Dick Wagner
1. Call meeting to order at 4:00 P.M.,May 11, 1999
2. Consider Utilities Agenda
George Zabee moved to approve the Utilities Agenda. John Dietz seconded the
motion. Motion carried 3-0.
3. Consider Consent Agenda
John Dietz had two questions regarding the financials.
John Dietz moved to approve the Consent Agenda as follows:
4-13-99 Minutes
April Check Register
Financials
5.1 Review and Consider 1999/2000 Employee Compensation
Discussion of the 1999/2000 Employee Compensation began with James Tralle
re-iterating past and present policies in the determination of Compensation.
Wade Lovelette asked if the Commission had made a decision on the wage
increase proposal of 3.75%, and added that if adjustment is made on a change in
benefits, it be done over four to five years. George Zabee stated that he has no
problem with a 3.75%wage increase,but is concerned with the benefit level
provided. He further adds that he thinks making the change in one year is too
much, but would favor two years.
John Dietz stated that he does not approve of using a metro average,but would
re-consider if benefits were also included. He would be in favor of spreading the
benefit level de-crease over two years. He asked if the 3.75%raise applied to
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Regular Meeting of the Elk River Municipal Utilities Commission
May 11, 1999
the Office Staff as well. He indicated that he has been advised that there are ways
to get around the comparable worth policy, and does not understand how the other
salaries are tied into the linemen's raise.
George Zabee said he favors a lump sum dollar amount for benefits,rather than
percentages.
Bryan Adams noted the over-all excellence of employees, and George Zabee
agreed. George Zabee commented on Unions. He added that he feels other
Utilities should be included in the wage and salary survey, such as Hibbing.
James Tralle would like to look at other possibilities for next year; to stay with
percentages this year, to be spread over a two year period. He also thinks a
Committee should be appointed to study a benefit change.
George Zabee moved to follow the metro average, with a 3.75%wage increase,
with a downward trend in benefits by increasing the employee contribution to
16% of the medical and dental premium for 1999/2000. James Tralle seconded
the motion. Motion carried 2-1. John Dietz voting nae.
Comparable Worth, Internal Equity and Office salary increases were discussed.
John Dietz stated that he is not in favor of an across the board 3.75%raise for all
employees. Lori Johnson and Pat Klaers advised that City employees do not
negotiate.
James Tralle moved to include all employees in the 3.75%wage increase,plus
an additional $.10 per hour for the Secretary-Receptionist positions, and$.40
for the Accounts Payable/Payroll position, to maintain 80% of the predicted pay
level, and to increase the medical and dental contribution by employees to 16%.
George Zabee seconded the motion. Motion carried 2-1, John Dietz voting nae.
James Tralle suggested looking at the use of additional Utilities for averaging
salaries and benefits, to review percentages versus cash contributions for
utility contribution to benefits,by appointing a Committee of one supervisor,
one manager,two office employees, two operational employees, and one
commissioner to discuss compensation issues for 2000/2001.
5.2 Review Water and Sewer Department Coordination
Bryan Adams reviewed the discussion from the 4-13-99 meeting on
combining Water and Sewer Department Heads in response to the
request from John Dietz. Bryan offered further information on legalities,
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Regular Meeting of the Elk River Municipal Utilities Commission
May 11, 1999
efficiencies, and the problems in shared management. John Dietz took issue
with the information in the ERMU Staff Memo, and questions the accuracy of
the data. John Dietz also stated that he wants to combine the Water and Sewer
Superintendent position, using Darrel Mack as the Department Head.
Robert McCartney and Glenn Sundeen offered their viewpoints. Bryan Adams
stated that he cannot understand what the real benefits would be. George Zabee
sees the only advantage in the area of inspections, and is not in favor of
combining the supervision. John Dietz would like to try the combining of
positions for one year.
Further discussion followed, with comments from ERMU Staff, City Staff, and
Commissioners.
George Zabee moved to table the discussion of the combining of the Water and
Sewer Superintendent positions to the June 8, 1999 meeting. James Tralle
seconded the motion. Motion carried 3-0.
5.3 Review the filling of position for pending Staff Retirement
George Zabee moved to table the May 11, 1999 Agenda Item 5.3 to the
June 8, 1999 meeting. John Dietz seconded the motion. Motion carried 3-0.
5.4 Up-date on-going Electric & Water Department projects
Glenn Sundeen up-dated the Commission on the progress of various construction
projects, the sub-station up-grade and construction, territory acquisition of
Ridgewood, and timing schedules for work. He noted that we are falling behind,
but new services are being done within one week of sign up.
Robert McCartney reported on the progress of Well#6 construction,the painting
of the Freeport Water Tower, the looping of water-main around the Courthouse,
sub-station metering and the recent Expo.
6.1 Review Initial results from Customer Visits
Commission and Staff reviewed a Memo from Vance Zehringer, Consultant
to the Elk River Municipal Utilities on Key Accounts. In general he notes that
customers are very complimentary about the level of service and experiences they
have had with the Utilities. It is noted, and Commission agrees, that we need to
do a better job of communicating with commercial and industrial accounts, in
order for them to stay informed.
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Regular Meeting of the Elk River Municipal Utilities Commission
May 11, 1999
6.2 Review and Consider Vehicle Fuel Tanks at Power Plant
Bryan Adams advised the Commission that the vehicle fuel tanks at the Plant
site are single walled and no longer meet fire code regulations. He presented
three options for dealing with the problem. Questions and responses followed.
George Zabee asked Glenn Sundeen for his opinion, and questions the advantages
of solely using the City tanks.
John Dietz moved to have Beaudry Oil install one diesel tank and one gasoline
tank at the Plant site, to be used in combination with the use of City tanks, and
to include fencing and site work. George Zabee seconded the motion. Motion
carried 3-0.
6.3 Review Electric Wheeling tariff
James Tralle moved to table May 11, 1999 Agenda Item 6.3 to the June 8, 1999
meeting. George Zabee seconded the motion. Motion carried 3-0.
Other Business
No other business.
The next scheduled meeting of the Elk River Municipal Utilities Commission will be
June 8, 1999.
James Tralle moved to adjourn the May 11, 1999 Regular Meeting of the Elk River
Municipal Utilities Commission. George Zabee seconded the motion. Motion carried
3-0.
The May 11, 1999 meeting of the Elk River Municipal Utilities adjourned at 6:05 P.M.
Respectfully submitted,
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Patricia Hemza
Office Manager