08-10-1999 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICE
AUGUST 10, 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
Other Employees Present: Steve Nordahl
1. Call meeting to order at 4:00 P.M.. August 10, 1999
2. Consider Utilities Agenda
George Zabee moved to approve the Utilities Agenda, with one addition from
Bryan Adams. John Dietz seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
George Zabee moved to approve the Consent Agenda as follows:
7-13-99 Minutes
July Check Register
Financials
5.1 Review Electrical Usage Patterns
Bryan Adams reported to the Commission that due to the hot and humid month
of July, ERMU exceeded projections of electric demand and energy. He noted
that due to the employees responsible for building, operating, and maintaining a
good distribution system there were no problems. The generation plant was
requested to run on four occasions in the month of July. The maintenance
which has been completed on this facility is exhibiting its worth.
5.2 Review& Consider Special Employee Compensation
Two positions were re-evaluated because of additional duties and responsibilities.
New(PDQ's)position description questionnaires were completed and evaluated
by Hay Management Consultants. Hay recommended point changes and salary
adjustments for each position.
Page 2
Regular meeting of the Elk River Utilities Commission
August 10, 1999
George Zabee moved to approve the recommended point adjustment and
associated salary adjustment for the Purchasing Clerk, to $15.54/hour.
John Dietz seconded the motion. Motion carried 3-0.
The second recommendation of point and salary adjustment is for the position
of Electronic Technician/Security. Steve Nordahl appeared before the
Commission on his own behalf, to speak of his expectations concerning his
position. Steve Nordahl responded to questions and comments by the
Commission.
George Zabee moved to approve the recommended point adjustment for
Electronic Technician/Security, and to increase the associated salary
adjustment at $1.16 per hour, '/2 the recommended rate,position to be
reviewed in six months. John Dietz seconded the motion. Motion carried 3-0.
5.3 Review Electric & Water Revenue Projections
Staff reviewed cash balances for the Electric and Water Departments, along with
revised projections. The 1998 Audit recommended that rates should continue to
be monitored regarding increases in cash, most especially in the Water
Department. Staff recommends that a reserve/restricted fund be established
within the Water Department.
James Tralle moved to establish a restricted Construction/Bond Reserve Fund for
the Water Department,with an initial appropriation of$250,000.00, with transfers
to be made at appropriate intervals, to the maximum of$1,000,000.00 for the
Fund balance. George Zabee seconded the motion. Motion carried 3-0.
6.1 Review& Consider Fall Construction Projects
Staff reviewed five Fall Construction Projects with the Commission.
1. Staff requests permission to proceed with plans and specifications for the
retrofit of the sand filter for Well #4.
George Zabee moved to proceed with plans and specifications by Staff for the
retrofit of the sand filter for Well#4 immediately. John Dietz seconded the
motion. Motion carried 3-0.
Page 3
Regular meeting of the Elk River Utilities Commission
August 10, 1999
2. Staff requests authorization to proceed with plans and specifications for
for the installation of two 69kV Breakers at the West Substation Bank#2.
John Dietz moved to proceed with plans and specifications for the installation of
two 69kV Breakers at the West Substation Bank#2, one breaker to be installed in
late fall 1999, and the other breaker installed in the spring of 2000. George Zabee
seconded the motion. Motion carried 3-0.
3. Future territory acquisition plans were recently discussed with Connexus
Energy, with regards to our financial constraints. A reasonable time-table with
costs to stay within the $350,000/year range will require the ERMU to construct
a feeder for Connexus Energy from Highway 169 east along 198th Avenue. This
will enable Connexus Energy to break the acquisition into small areas.
John Dietz moved to authorize the construction of a new feeder from Highway
169 east along 198th Avenue, at an estimated cost of$70,000.00.
George Zabee seconded the motion. Motion carried 3-0.
4. An electric line truck is scheduled to be replaced in the year 2000.
Delivery for the electric line truck is approximately one year, which necessitates
the need to prepare specifications this year.
John Dietz moved to authorize the preparation of specifications for an electric
line truck, for delivery in 2000. James Tralle seconded the motion. Motion
carried 3-0.
John Dietz moved to authorize Staff to bid the placement of the underground for
Trott Brook Farms development, and to award the lowest responsible bidder, if
necessary, before the next scheduled September 7, 1999 Commission meeting.
George Zabee seconded the motion. Motion carried 3-0.
6.2 Review Progress of Year 2000 Budget
Staff advised the Commission that the assembling of year 2000 budget has
begun per the arranged schedule. The Travel &Training Budget, and the 10
Year Personnel Projections were presented and discussed. Changes were noted
and recorded concerning the Travel & Training Budget. Conversation moved on
to the Personnel Projections. The need for an extra line-person or crew was
discussed. It is noted that due to the death of June Schantzen, and the return to
College by the summer interim employee, Erin Peterson, there is an opening in
the office.
w
Page 4
Regular meeting of the Elk River Utilities Commission
August 10, 1999
George Zabee moved to authorize the hiring of a full-time office person. John
Dietz seconded the motion. Motion carried 3-0.
Other Business
The Commission was advised that the Sewer Superintendent for the City of Elk River has
resigned,bringing back discussion of a combined Water/Sewer Position. Questions of
legality were discussed. The Utility and the City have arranged for legal opinions in this
matter. George Zabee suggested to Staff, that an opinion by the Attorney General be
arranged. Possible dates for a combined Utility/City meeting were discussed.
The next meeting of the Elk River Municipal Utilities Commission will be September 7,
1999 at 4:00 PM.
John Dietz moved to adjourn the August 10, 1999 Regular Meeting of the Elk River
Municipal Utilities Commission. George Zabee seconded the motion. Motion carried
3-0.
The August 10, 1999 meeting of the Elk River Municipal Utilities adjourned at 5:50 PM.
Respectfully submitted,
4
Patricia Hemza
Office Manager