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12-09-1997 ERMU MIN ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE ELK RIVER UTILITIES COMMISSION HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICE DECEMBER 9, 1997 Members Present: President, John Dietz; Vice Chairman, George Zabee; Trustee, James Tralle Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; Robert McCartney, Water Superintendent, Patricia Hemza, Office Manager 1. Call meeting to order at 4:00 P.M. December 9, 1997 2. Consider Utilities Agenda Bryan Adams suggested an additional item to be discussed under Other Business. 3. *Consider Consent Agenda Mr. Tralle moved to approve the consent Agenda as follows: 11-12-97 minutes, with the addition of a 1-1-98 effective date for the WAC fee increase under 6.6. Check Register Financials Mr. Zabee seconded the motion. Motion carried 3-0. 5.1 Review and consider 1998 Budget Projected revenues, expenditures, construction and equipment items were discussed by Commission and Staff. Comparisons with past years and problems arising from rapid growth were discussed and analyzed. Mr. Tralle moved to approve the 1998 Budget as presented. Mr. Zabee seconded the motion. Motion carried 3-0. 5.2 Review and consider Drug Testing Policy The revisions to the Drug and Alcohol Policy were presented for discussion. Staff recommends adoption of the policy to insure a safe, healthy and efficient environment for employees and customers. Mr. Tralle moved to adopt the Drug and Alcohol Policy as presented. Mr. Zabee seconded the motion. Motion carried 3-0. Page 2 Regular meeting of the Elk River Utilities Commission 5.3 Review Demand Electric Rate Bryan reviewed the history of the rate, with recommendations by R.W.Beck in February, 97 to make changes in the demand rate over a 3-year period. The proposed change will re-align the rate to more accurately reflect the way we purchase power. Mr. Tralle moved to approve the annual adjustment of the Demand Electric Rate. (Copy attached to these minutes.) Mr. Zabee seconded the motion. Motion carried 3-0. 5.4 Four year Step Program for new full-time employee Bryan Adams presented a Step Wage Program for new hires of the Elk River Municipal Utilities,that is a four step program, with the step increases annually. Mr. Tralle moved to adopt the Four Step Wage Program for new hires, with the step increases to be made annually,based upon satisfactory performance. Mr. Zabee seconded the motion. Motion carried 3-0. 5.5 Up-date Landfill Gas Electric Generation Project Bryan Adams apprised the Commission of the final version of the "Proposal for Sale of Electric Power Fueled by Landfill Gas"to Elk River Municipal Utilities by RECO. Mr. Tralle moved to authorize Bryan Adams, General Manager,to sign the document, "Proposal for Sale of Electric Power Fueled by Landfill Gas", at which time RECO accepts and signs the document. Mr. Zabee seconded the motion. Motion carried 3-0. 6.1 Review MN Dept of Health evaluation of Elk River Water System Commission reviewed with Staff,the annual Investigation Report by the MN Dept of Health. Only two recommendations were given, which speaks very well of the Water Department of the Elk River Municipal Utilities, and Robert McCartney, Water Superintendent. Commission commends Robert McCartney for his efforts in water quality control. Other Business Bryan Adams reported to the Commission that we will submit our previous compliance report for Comparable Worth, and send in our newly revised report next year when all revisions and adjustments have been made. Page 3 Regular meeting of the Elk River Utilities Commission Mr. Tralle moved to adjourn the December 9, 1997 Elk River Municipal Utilities Commission. Mr. Zabee seconded the motion. Motion carried 3-0. The meeting of the Elk River Utilities Commission adjourned at 5:20 P.M. The next scheduled meeting of the Elk River Utilities Commission will be January 13, 1998. Respectfully submitted, Patricia Hemza Office Manager