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12-10-1996 ERMU MIN REGULAR MEETING OF THE ELK RIVER MUNICIPAL UTILITIES COMMISSION HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICES DECEMBER 10, 1996 Members Present : President James Tralle, Vice Chairman John Dietz, Trustee George Zabee Others Present : Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; Robert McCartney, Water Superintendent; Patricia Hemza, Office Manager; Teresa Kervin, R.W.Beck 1 . Call Meeting to Order Pursuant to due call and notice thereof, the meeting of the Elk River Utilities Commission was called to order at 4 : 00 P.M. by President Tralle. 2 . Consider Utilities Agenda Mr. Zabee moved to approve the 12-10-96 Agenda. Mr. Dietz seconded the motion. Motion carried 3-0 . 3 . *Consider Consent Agenda Mr. Dietz moved to approve the Consent Agenda as follows : 3 . 11-12-96 Minutes -- approved 4 . Check Register -- approved OLD BUSINESS 5 . 1 Electric Rate Study Up-date Teresa Kervin, from R.W.Beck, appeared to present the preliminary report of the 1996 Electric Rate Study currently in progress . Power and energy requirements, wholesale power, energy expense, operating expenses, revenue requirements, cost of service, load factors, and samples of current and proposed retail rates were explained and discussed. No action to be taken at this meeting. The final report will be presented at a later date. Staff and R.W.Beck are directed to prepare samples of bills for a wide variety of customers using the rate options . 5 .2 Proposed contribution policy Mr. Adams presented a report for the consideration of the Commission regarding financial contributions. He recommends that special contributions should be only considered if a financial expenditure can be justified Regular meeting of the Elk River Utilities Commission December 10, 1996 Page 2 from a financial perspective . Examples were given, as well as Minnesota Statute 216B. 03, which requires that rates be just and reasonable and that rates shall not be unreasonably preferential, prejudicial or discriminatory, and Minnesota Statute 216B. 161, which allows for a temporary discount to demand charges for new or expanding manufacturing or wholesale customers who locate in one of a fixed number of area development zones . Although we are not necessarily subject to these Statutes, Mr. Adams advises that it is not good practice to deviate from the spirit of the laws . Further discussion will be held at future meetings . 5 .4 Water facilities location up-date Mr. Adams has contacted two property owners in regard to purchase of land for future water facilities. One property owner has no interest in selling his property at this time. Discussion is still in progress with ISD 728, owner of the other property. Commission will be advised of progress . 5 . 5 AEC - ERMU Contract Amendment The latest revision to the wholesale purchased power agreement was read and received by the Commission. Mr. Adams explained the agreement and ramifications of the changes . Mr. Dietz moved to have the revised Contract Amendment signed. Mr. Zabee seconded the motion. Motion carried 3-0 . 5 . 6 1997 Proposed Budget The proposed 1997 budget was presented and discussed at length. The presented budget assumes realignment of rates at this time, not generally increased or decreased. The transitional purchased power rate from Anoka Electric Cooperative was considered in the budget . No increases in the water rates were used because of the pending study. The budget was received, and will be acted upon at the January, 1997 meeting. Regular meeting of the Elk River Utilities Commission December 10, 1996 Page 3 NEW BUSINESS 6 . 1 1997 Employee Compensation Mr. Adams advised the Commission on the current policies regarding employee compensation, along with his recommendations . Mr. Zabee moved to increase the steps for office employees and supervisory staff at the rate of 3 . 911%, the same increase the linemen received. Mr. Tralle seconded the motion. Motion carried 3-0 . Mr. Zabee moved to move Mr. Sundeen to the top of the step program, and move Ms Hemza to Step 6 as of January 1, 1997, and to the top of the scale on June 1, 1997 . Mr. Tralle seconded the motion. Motion carried 3-0 . Staff was directed by the Commission to develop a new four year, four step plan for new employees. Mr. Zabee moved to consider the wages of all employees on June 1, 1997, rather than the present June and January schedule. Mr. Dietz seconded the motion. Motion carried 3-0 . 6 . 2 Water - Services person Apprenticeship Program A proposed apprenticeship program for the water service person was presented for consideration. The water department does not have a formalized training program, but rather has a more customized program for the individual . Course work, text books and study guides are published by the American Water Works Association. The program is approximately $700 . 00 and four years in length. Mr. Dietz moved to adopt the apprenticeship program. Mr. Zabee seconded the motion. Motion carried 3-0 . 6 . 3 Electric Load Management Programs Mr. Adams advised the Commission of load management programs that are available to us, with the advice that it is our social responsibility to offer these programs to our customers . As demand costs rise it will also become cost effective for the Utilities to offer these programs. A good public awareness program must preceed implementing a load management program. This will entail developing some high quality brochures . Regular meeting of the Elk River Utilities Commission December 10, 1996 Page 4 Staff is directed to proceed with the development of procedures to initiate the programs. 6 .4 Procedure for emergency closing Staff recommends the adoption of a Procedure for Emergency Closings of the Elk River Utilities . Copy attached. Mr. Zabee moved to adopt the Procedure for Emergency Closing of the Elk River Utilities . Mr. Tralle seconded the motion. Motion carried 3-0 . Other Business Mr. Adams reported that he will be present at the 1-6-97 City Council meeting to up-date them on current projects . Mr. Adams advised the Commission that the specifications for the 69KV sub-station transformer are nearly completed. The next scheduled meeting of the Elk River Utilities Commission will be Tuesday, January 14, 1997 . Mr. Dietz moved to adjourn. Mr. Zabee seconded the motion. Motion carried 3-0 . The meeting of the Elk River Utilities Commission adjourned at 7 :10 P.M. Respectfully submitted, Patricia Hemza Office Manager Y To : Bryan Adams, General Manager From: Pat Hemza, Office Manager Per our discussion, 11/19/96, PROCEDURE FOR EMERGENCY CLOSINGS 1 . If adverse weather or other emergency conditions exist during normal business hours of the Elk River Municipal Utilities, the General Manager may declare that a state of emergency exists . All employees will be notified. 2 . When a state of emergency is declared, each individual employee may determine whether he/she will remain on the job or be excused. The Utility recognizes that the safety and health of employees and their dependents will have priority. Any employee who determines that their safety or the safety of their dependent' s may be placed in jeopardy if the employee remains on the job shall be authorized to leave . Any employee so excused must utilize vacation or compensatory time for the time missed from work. If such employee has neither vacation or compensatory time, then the time absent shall be leave without pay. 3 . Each Supervisor shall determine whether or not that department retains sufficient staffing levels to remain open. In the event that a Supervisor chooses to close his/her department during normal business hours, the General Manager will immediately be notified of such closing. 4 . This policy is developed with the assumption that a complete closing of all Utility facilities during normal business hours shall not occur. However, the General Manager and the President of the Utilities Commission retain the authority to deviate from this policy if deemed necessary by these authorities . In this case, there will be no loss of pay or time to the employee if a general halt to operations occurs . 5 . This policy does not apply to those departments and employees expected to remain on duty during adverse weather or other emergency events .