3.1.B. ERMU MINUTES 03-08-2011ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
February 15, 2011
Members Present: John Dietz, President; Daryl Thompson, Trustee
Member Absent: Al Nadeau
ERMU Staff Present: Troy Adams, Director of Operations;
Theresa Slominski, Finance Director/Office Manager;
Mark Fuchs, Line Superintendent; David Berg, Water Superintendent;
Wade Lovelette, Technical Services Superintendent;
Judy McSpadden, Recording Clerk
Others Present: Peter Beck, Attorney from Gray Plant Mooty Law Firm
1.1 Call meeting to order February 15, 2011
John Dietz called the February 15, 2011 meeting to order at 3:30 p.m.
2.1 Consider Utilities Agenda
Daryl Thompson moved to approve the February 15, 2011 Utilities Agenda. John Dietz
seconded the motion. Motion carried 2-0.
3.1 Consider Consent Agenda
John Dietz had questions on the check register and financials, staff responded.
Daryl Thompson moved to approve the Consent Agenda as follows:
a. January Check Register
b. January 11, 2011 Minutes
c. Financial Reports
d. 2011 Regular Utilities Commission Meeting Schedule
e. Ratification of Cold Weather Rule Appeal Policy
John Dietz seconded the motion. Motion carried 2-0.
4.1 Review of City Ordinance 78-51 WATER USE RESTRICTIONS and Elk River
Municipal Utilities' 2009 RESOLUTION IMPOSING WATER USE RESTRICTIONS
WITHIN THE CITY OF ELK RIVER
In July 2009, as authorized under City Ordinance Section 78-51, the Utilities Commission
adopted a resolution imposing water use restrictions. The motion to approve this resolution was
carried by a 3-0 vote. The scope of 78-51 WATER USE RESTRICTIONS was reviewed by the
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Regular meeting of the Elk River Municipal Utilities Commission
February 15, 2011
Utilities Commission in September 2010. It was then proposed to the City Council in October 2010 to
amend the scope of geographical area subject to water use restrictions from the City water service area
to all of the City limits. The Council chose not to make any changes to the ordinance at that time. At
the December 2010 Utilities Commission meeting, the Commission directed staff to bring back for
review the water use restriction resolution that had been adopted in 2009. At the January 2011
Utilities Commission meeting the Commission tabled this topic until February.
Troy Adams discussed the Ordinance 78-51 adopted in 2009 titled Resolution Imposing Water
Use Restrictions within the City of Elk River, and Ordinance 78-52 Penalties. Discussion followed.
There is currently legislative organization taking place at the State Capitol that is indirectly related to
this topic. The State Senate File 64 and State House File 135 propose modifications to a City's
statutory authority to regulate private wells within City's boundaries. The League of Minnesota Cities
is coordinating efforts to address the proposed legislation. John Dietz recommended waiting to
discuss this issue when the newly appointed commissioner Al Nadeau is present. Daryl Thompson
added he would prefer to wait until the State makes their decision.
Daryl Thompson moved to table the Water Restriction issue until the April 12, 2011, Elk River
Municipal Utilities Commission meeting. John Dietz seconded the motion. Motion carried 2-0.
4.2 Updated 2010 Annual Electric Reliability Report
Troy Adams updated the Commissioners on a change that was made to the Electric Reliability
report provided to the Commissioners at the January 2011 ERMU Commission meeting. This report
was a focus of discussion at the staff update following the January Utilities Commission meeting. At
this meeting it was discovered that an outage was inadvertently omitted. The report has since been
updated. Adding this outage doesn't significantly change the overall reliability numbers. The ASAI
(average service availability index) is now at 99.985%. No action needed.
4.3 Update on the Midwest Municipal Transmission Group and the CAPX2020
Brookines/Twin Cities Transmission Proiect
Troy Adams updated the Commission on the recent conference call with CMMPA, ERMU, and
City of Elk River staff to analyze the financials of the project and the proposed investment options.
CMMPA will be addressing the City Council and Utilities Commissioners at a joint meeting on
March 7 h to present the financial details of the project with a follow-up meeting to make the final
decision on March 10. Discussion followed. Lori Johnson will check on the mechanics of the
bonding for the project. John Dietz asked Troy Adams to forward on any information that may come
between now and the joint meeting with City Council.
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Regular meeting of the Elk River Municipal Utilities Commission
February 15, 2011
5.1 Review 2010 Annual Safety Report
Minnesota Rules Chapter 7826 Public Utilities Commission Electric Utility Standards cover
safety, reliability, service, and reporting requirements. Per 7826.0100(A), municipal utilities are
exempt from these requirements. However, the Elk River Municipal Utilities Commission adopted a
number of parts of this chapter as a Distribution Reliability Standard policy. This policy includes an
Annual Safety Report requirement. The policy requires ERMU to "file an annual safety performance
report with its local governing body. The report will include summaries of all reports filed with
OSHA and the Occupational Safety and Health Division of the Minnesota Department of Labor and
Industry during the calendar year." The report was received and filed.
5.2 Review and Consider 2011 Cable Bids
On February 9, 2011, bids were received to furnish and deliver ERMU's electric cable needs for
2011 planned work. Staff recommends using the firm pricing and awarding to Resco, the lowest
responsive bidder.
Daryl Thompson moved to award the 2011 cable bid using the firm pricing to Resco, the lowest
responsive bidder. John Dietz seconded the motion. Motion carried 2-0.
5.3 Review and Consider Well #3 Repair/Maintenance Bids
Bids were recently received for the repair and maintenance of Well #3. Staff recommends
awarding to Alberg Water Services, the lowest responsive bidder.
Daryl Thompson moved to award Well #3 Repair/Maintenance to Alberg Water Services, the
lowest responsive bidder. John Dietz seconded the motion. Motion carried 2-0.
5.4 Review and Consider 2011 Vehicle Purchases
ERMU has been utilizing a couple of vehicles that the titles are in the City of Elk River's name.
Those vehicles need to be reassigned to the Elk River Police Department. Also, the security van has a
lot of miles on it and is undersized for the assigned workload. Staff recommends the purchase of two
new F250 trucks, one for the electric department, one for the water department, and an E250 cargo
van for the Security department. These were all included in the 2011 budgeting process. Discussion
followed regarding the possibility of purchasing the two City vehicles currently being used. Peter
Beck said he would look into it.
Daryl Thompson moved to approve the purchase of a Ford E250 cargo van from Midway Ford
to replace the Security van for $18,629.46, and pending the outcome of potentially purchasing
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Regular meeting of the Elk River Municipal Utilities Commission
February 15, 2011
the City titled vehicles, two new F250 pick-ups from Elk River Ford for $22,996 each. John
Dietz seconded the motion. Motion carried 2-0.
6.1 Staff Updates
Troy Adams informed the Commission that the new maintenance person started on February 0
and has been working out well. Staff is in the process of reviewing applications for the water operator
position and interviews will be scheduled soon. With the increased cost of maintenance issues at the
Landfill, Troy Adams had Lome Franz look at the contract agreement and previous charges dating
back to 2008. She discovered over $40,000 in charges that should have been charged to Waste
Management. This will result in a huge credit off the maintenance bill. Commissioners and staff
commended her on a great job.
Theresa Slominski updated the Commission on the results of the two on -site visits to potential
providers of after hour's customer service. Staff chose CRC as they best met our needs.
Daryl Thompson moved to approve the contract with CRC for after hour's customer service.
John Dietz seconded the motion. Motion carried 2-0.
Mark Fuchs said they are currently looking into the state bid for the Plow and directional boring
equipment.
6.2 Set Date for Next Meeting
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, March 8, 2011 at 3:30 p.m.
6.3 Adjourn Regular Meeting
Daryl Thompson moved to adjourn the regular meeting of the Elk River Municipal
Utilities Commission meeting at 4:35 p.m. John Dietz seconded the motion. Motion carried 2-0.
Minutes prepared by Judy McSpadden.
John J. Dietz
President, ERMU Commission
Tina Allard
City Clerk