07-09-1997 ERMU MIN REGULAR MEETING OF THE ELK RIVER
MUNICIPAL UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICES
JULY 9, 1997
Members Present: President, John Dietz; Vice Chairman, George Zabee; Trustee, James Tralle
Others Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; Patricia
Hemza, Office Manager; Pat Klaers, City Manager; Dave Anderson, President of Elk River
Softball Association
1. Call meeting to order at 3:30 P.M. July 9, 1997
2. Consider Utilities Agenda
Mr. Tralle moved to approve the 7-9-97 Agenda. Mr. Zabee seconded the motion.
Motion carried 3-0.
3. *Consider Consent Agenda.
Mr. Tralle moved to approve the Consent Agenda as follows:
3. 6-4-97 Minutes
4. Check Register
Financials
5.1 Review and consider Off-Peak and Street Light Tariff Sheets.
Bryan Adams presented the proposed tariff sheets for Off-Peak and Street Lights,
which reflect recommendations by R.W.Beck. Bryan responded to questions by
Commissioners regarding the Off-Peak Rate.
Mr. Tralle moved to adopt the St. Light Rate. Mr. Zabee seconded the motion.
Motion carried 3-0.
Mr. Tralle moved to adopt the Off-Peak Demand Rate. Mr. Zabee seconded the
motion. Motion carried 3-0.
5.5 Update Ballfield Contribution
At the August 11, 1992 ERMU Commission meeting, a donation of electricity for
the softball field lighting and concessions was approved for a period of five years.
The five year time frame will end August, 1997. Dave Anderson appeared before the
Regular meeting of the Elk River Utilities Commission July 9, 1997
Page 2
Commission to request continuation of the contribution. He explained the benefits
that the Softball Association makes to the City and to the Community. The request
for continued donation was discussed at length, considering the amount of the
contribution and the cost to the Utilities.
Mr. Dietz moved to extend the donation through 1997, and to re-consider the issue
with the discussion of contributions to the City at the September meeting. Mr. Zabee
seconded the motion. Motion carried 3-0.
5.2 Review and consider Pay Equity Study and Recommendations
Bryan Adams summarized the final report from Hay Management and presented
options to satisfy the requirements of Pay Equity. Bryan again explained the
procedures involved and the reasons for compliance. He stressed that the Pay
Equity deals with the job points and gender, not with individuals. Options
presented reach compliance and promote general pay equity within the Elk River
Municipal Utilities. Recommendations were presented to the Commission for
consideration, and discussion followed.
Mr. Zabee moved to raise the base salary of Assistant Office Manager/Collections
$550.00 per month on June 1997, and$550.00 per month on June 1998; raise the
base salary of Office Manager, $80.00 per month on June 1998; combine the male
job classes of Locator, Water Operator and Power Plant Operator into one job class
titled Utility Operator in June 1998. To further adjust pay equity,raise Clerk/Cashier/
Receptionist saleries by $.010/hr in July 1997, 1998, 1999; Clerk/Sec/purchasing
salary by $.10/hr in July 1997, 1998, 1999; Accts Payable/Payroll salary by $.40/hr in
July 1997, 1998, 1999.
Discussion followed the motion by Mr. Zabee.
Mr. Dietz moved to amend the motion by Mr. Zabee to change the increase for
base salary of Asst. Office Manager/Collections $1,100.00, spread over
18 months, beginning June, 1997; to raise the base salary of Office Manager, $80.00
per month on June 1998; and combine the male job classes of Locator, Water
Operator, and Power Plant Operator into one class titled Utility Operator, in June
1998. Mr. Tralle seconded the motion. Motion carried 3-0.
Mr. Tralle moved to raise the Clerk/Cashier/Rec salary by $.10/hr starting July, 1997;
Clerk/Sec/purchasing salary by $.10/hr in July 1997; Accts Payable/Payroll salary by
$.40/hr in July 1997;,with review of all three positions on July 1, 1998. Mr. Dietz
seconded the motion.
Regular meeting of the Elk River Utilities Commission July 9, 1997
Page 3
Motion carried 2-1, Mr. Zabee voting nae for the reason that he felt the raises should
be automatic for three years.
5.3 Review and consider Purchase Agreement with ISD 728
The Purchase Agreement for the land north of Meadowvale School for$21,000.00 for
construction of a well, filter plant and a possible water tower, was presented.
(Agreement attached to minutes)
Mr. Tralle moved to approve the Purchase Agreement with ISD 728.
Mr. Zabee seconded the motion. Motion carried 3-0.
5.4 Update on Utility Bill Automated Payment
Pat Hemza reported on the progress of setting up Utility Automated Payment
for ERMU customers,per the directive of the Commission in 1996. The process
will be completed,with customers being able to enroll by October of this year.
5.6 Up-date Highland Road Water Main Project
Bryan Adams advised the Commission the Bonding is in place through the
City of Elk River for a ten year period. Discussion of the project followed.
6.1 ERMU Water Sprinkling Restrictions
Information was presented concerning the high water use due to the extended
dry spell along with articles published in local papers and including bill stuffers
encouraging water conservation. Mr. Zabee moved to authorize and delegate the
General Manager and Water Superintendent to impose temporary water restrictions.
Mr. Dietz seconded the motion. Motion carried 3-0.
Mr. Tralle asked Mr. Dietz to review the possibility of permanent water restrictions
with the City Council. The concerns voiced by Bryan Adams and James Tralle
include the safety and integrity of the present water system.
Mr. Zabee moved to continue water restrictions for the remainder of 1997. Mr.
Tralle seconded the motion. Motion carried 3-0.
6.2 Review MMUA Electric Rate Study
Bryan Adams presented the annual electric rate study for all municipal utilities
Regular meeting of the Elk River Utilities Commission July 9, 1997
Page 4
in Minnesota conducted by the Minnesota Municipal Utilities Association. He
explained that the rate study is broken down into three groups. He pointed out the
position of ERMU in relation to others in our category. He also presented a paper
he wrote,titled, "What is the Proper Response by Elk River Municipal Utilities to
Electric Deregulation to Possibly the Retail Level", for the Commissions review.
This lead into discussion on ERMU response and damages incurred from the
July 1, 1997 wind storm. Staff was congratulated on their efforts in restoring
electric power to the affected customers.
6.3 Demolition of storage building north of Power Plant
A 50' X 100' storage shed, currently used for storage, was damaged last winter
due to heavy snow. The roof collapsed and the structure is beyond repair. Proposals
have been received and it will be removed in July 1997.
Other Business
Bryan Adams up-dated the Commission on the Heritage Festival plans, and the planned open
house commemorating ERMU's 50th Anniversary.
A request by Sprint to use our water towers for placement of antennas, was not considered.
Mr. Zabee asked Bryan Adams and staff to return to the Commission with recommendations for
annual employee recognitions.
Mr. Zabee moved to recognize Glenn Sundeen's 25 years of exemplary service to the Elk River
Municipal Utilities and to commend him. Mr. Tralle seconded the motion. Motion carried 3-0.
A Special Meeting will be called for Friday, July 18, 1997 at 9:00 A.M for the purpose of
awarding the bid for the repair of a diesel engine at the plant.
The next scheduled meeting of the Elk River Municipal Utilities will be August 12, 1997, at 3:30
P.M.
With no further business to be discussed, Mr. Tralle moved to adjourn. Mr. Zabee seconded the
motion.
The meeting of the Elk River Utilities Commission adjourned at 5:00 P.M.
ectfully submitt ,
Patricia Hemza .arT
Office Manager