11-12-1997 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER MUNICIPAL UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICE
NOVEMBER 12, 1997
Members Present: President, John Dietz; Vice Chairman, George Zabee; Trustee, James
Tralle
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
Patricia Hemza, Office Manager
Others Present: Pat Klaers, City Administrator; Dave Anderson, President of Elk River
Softball Association
1. Call meeting to order at 4:00 P.M. November 12, 1997
2. Consider Utilities Agenda
Bryan Adams suggested discussion of the financials be combined with discussion of
Item 6.5. John Dietz will offer an item under business.
3. *Consider Consent Agenda
Mr. Zabee moved to approve the consent Agenda as follows:
10-21-97 Minutes
Check Register
Financials were discussed at this time. Bryan Adams presented concerns regarding the
1998 budget, capital items and results of the rate increase that took place January 1, 1997.
The cost of growth was emphasized. John Dietz asked about the possibility of financing
further territory acquisition and capital projects. Discussion followed. Mr. Zabee moved
to receive and file the October financials. Mr. Tralle seconded the motion. Motion
carried 3-0.
5.1 Consider additional personnel,Electronics Technician/Home Security
Bryan Adams proposed the addition of personnel. Presented were a current
and proposed organizational chart,position description, evaluation form and a
proposed 4 year pay step plan. Discussion followed the presentation. Staff was
directed to survey Vo-techs for salary suggestions.
Mr. Tralle moved to advertise for and hire an Electronics Technician/Home Security
person. Mr. Zabee seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Utilities Commission
5.2 Review and consider Ballfield Lighting Contribution
In August 11, 1992 the ERMU Commission moved to approve a donation of
electricity for the ballfields for a period of five years. In August, 1997 the ERMU
Commission extended the donation to the end of 1997. Dave Anderson appeared to
request further donation and to explain the benefits of the softball fields to the
community and to the City. Discussion continued considering the benefits and the
costs involved.
Mr. Dietz moved to pay the first$5,000.00 of electrical charges as a donation,the
City to be billed at year end for the excess amount. (Policy to begin 1-1-98). Mr.
Zabee seconded the motion. Motion carried 3-0.
6.1 Up-date Drinking Fountain at Ball Park
Bryan Adams up-dated the Commission on the policy regarding public drinking
fountains, and the installation of a fountain at the high school varsity baseball field
just west of Proctor Avenue by the soccer field complex.
6.2 Review and consider Drug and Alcohol Testing Policy
Staff presented the Commission with a proposed Drug and Alcohol Policy for their
consideration, along with the reasons for adoption of the policy to cover all employees
of the Elk River Utilities. Discussions and concerns followed, with suggestions for
the re-wording for further clarification. Staff was directed to revise the policy and
return to the Commission at the December meeting for approval.
6.3 Consider proposal to study Bonding Limit for Water Department
A proposal from Springstead, Inc. for determination of the ERMU's debt capacity
and whether the current connection fee (WAC) is sufficient for repaying existing
and further debt service for capital improvements. Bryan Adams advised the
Commission of the Water Department's cash requirements and the major projects
facing the Department.
Mr. Tralle moved to accept the proposal from Springstead, Inc.,not to exceed
$5,130.00 for the study of bonding limits for the Elk River Municipal Utilities
Water Department. Mr. Zabee seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Utilities Commission
6.4 Up-date Heat Share Program
Staff up-dated the Commission on the Heat Share program, which provides for
energy assistance for certain people who cannot pay their utility bills. Heat Share
is a program administered by the Salvation Army for emergency assistance.
Response by ERMU customers has been favorable.
6.5 Review Electric Demand Rate
Bryan Adams reviewed the Demand Customer Electric rate,with proposed
adjustments. The rate study by R.W. Beck was implemented in February, 1997
with the changes in the Demand Customer Electric Rate to be made over a three
year period. Customer impact, budget needs and projected revenues and short-falls
were discussed, along with staff recommendations for changes. Staff was directed to
revise the tariff sheets for the Demand Rate and return to the Commission at the
December, 1997 meeting for approval.
6.6 Review Utility Connection Rate for Electric and Water
The rate study done in early 1997 was reviewed. At that time the recommendation
was to adjust the fees to the necessary needed amount to cover existing debt service
and future projects. Growth of the City and the increased demands for water services
discussed, with several viewpoints expressed from Commission and Staff
Mr. Zabee moved to raise the WAC fee to $1,350.00, with no change in the
developer portion,the additional be placed on the Builder/Owner. To become
effective 1-1-98. Mr. Tralle seconded the motion. Motion carried 2-1. John Dietz
voting nae.
The Electrical Connect Fees were discussed, with emphasis on the cost to the
Utilities for installations, and the impacts upon the Utility. The unique position of
high growth, and the expenses involved were gone over with Commissioners and
Staff offering their opinions and observations.
Mr. Zabee moved to raise the electrical connection fee from$800 to $900. Mr.
Tralle seconded the motion. Motion carried 2-1. John Dietz voting nae.
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Regular meeting of the Elk River Utilities Commission
6.7 Consider up-dated Itron Meter Reading System
A history of our meter reading system was presented, along with the need to
up-grade. The current system no longer has enough memory and cannot be
equipped with more, as well as being unable to cope with the year 2000. The
Itron handheld meter reading system has been an excellent system and Staff
recommends the up-date to be Itron.
Mr. Tralle moved to purchase a current Itron Meter Reading System for
payment and delivery in 1998. Mr. Zabee seconded the motion. Motion carried 3-0.
Other Business
John Dietz asked that the Utilities staff check with City staff on the possibility of
combining health insurance coverage for employees at a lower rate.
Mr. Tralle moved to adjourn the November 12, 1997 meeting of the Elk River Municipal
Utilities Commission. Mr. Zabee seconded the motion. Motion carried 3-0.
The meeting of the Elk River Utilities Commission adjourned at 6:20 P.M.
The next scheduled meeting of the Elk River Utilities Commission will be December 9,
1997.
Respectfully submitted,
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Patricia Hemza
Office Manager