3.2. ERMU MINUTES 02-14-2012ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
January 10, 2012
Members Present: John Dietz, Chair; Daryl Thompson, Vice Chair; Al Nadeau, Trustee
ERMU Staff Present: Troy Adams, Utilities Director;
Mark Fuchs, Line Superintendent; David Berg, Water Superintendent;
Wade Lovelette, Technical Services Superintendent;
Tom Sagstetter, Conservation & Key Accounts Manager;
Judy McSpadden, Recording Clerk
ERMU Staff Absent: Theresa Slominski, Finance Director/Office Manager
Others Present: Cal Poriner, City Administrator;
Peter Beck, Attorney from Gray Plant Mooty Law Firm;
Derick Dahlen and Molly Weyandt of Avant Energy representing
Minnesota Municipal Power Association (M1vIPA)
Troy Adams informed the Commission that Al Nadeau would be late.
1.1 Call meeting to order January 10, 2012
John Dietz called the January 10, 2012 meeting to order at 3:30 p.m.
2.1 Consider Utilities Agenda
Daryl Thompson moved to approve the January 10, 2012 Utilities Agenda. John Dietz
seconded the motion. Motion carried 2-0.
John Dietz moved up 4.1 Power Supply Options to accommodate the representatives from MMPA
and to address the Consent Agenda when Al Nadeau arrives.
4.1 Update on Power Supply Options / Resource Planning
In September 2008, Connexus Energy terminated the 10 -year rolling "all requirements" power
contract with Elk River Municipal Utilities (ERMU). ERMU Commission authorized entering into
"Phase I" of a resource planning study in April of 2010, with a coalition which includes Central
Minnesota Municipal Power Agency (CMMPA) as a participant. In September 2010, ERMU
Commission authorized entering into "Phase 2" of a resource planning study which includes the
release of a Request For Proposal (RFP). The RFP was issued on November 15, 2010. In May 2011,
the ERMU Commission authorized entering into "Phase 2b" of the resource planning study which
will include risk assessment of the proposals. In addition to working with the Resource Planning
Coalition, staff continues to explore other power supply options.
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Regular meeting of the Elk River Municipal Utilities Commission
January 10, 2012
Troy Adams welcomed the representative from MMPA and turned the floor over for
introductions. Derick Dahlen the Chief Executive Officer for MMPA and President of Avant Energy,
along with Molly Weyandt, Power Services Manager from Avant Energy gave an overview of
MMPA's history. Discussion followed.
Al Nadeau arrived during the MMPA presentation.
3.1 Consider Consent Aeenda
John Dietz asked Troy Adams to get a more detailed explanation of the Administrative and
General expenses for this year to date versus last year.
Daryl Thompson moved to approve the Consent Agenda as follows:
a. December Check Register
b. December 13, 2011 Regular Meeting Minutes
c. Financial Reports
Al Nadeau seconded the motion. Motion carried 34
OPEN MIC
No one appeared for open mic.
5.1 Review 2012 Tariffs
At the December 13, 2011 ERMU Commission meeting, the 2012 budget was approved.
Included in the budget were a number of rate increases. Staff is recommending approval of the
updated tariff sheets that reflect the rate changes that were previously approved.
Daryl Thompson moved to approve the 2012 rates and tariff sheets as presented. Al Nadeau
seconded the motion. Motion carried 3-0.
5.2 Review and Consider 4th Quarter Write -Offs
The fourth quarter write-offs were reviewed. The amounts totaling $22,411.98 consist of
$3,150.74 in accounts sent to a collection agency, $782.65 to be written off with no further collection
efforts, $18,263.35 submitted to the Revenue Recapture, and $215.24 that will be assessed next year.
Additionally, there is $3,204.66 that is being written off in med-alert accounts.
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Regular meeting of the Elk River Municipal Utilities Commission
January 10, 2012
John Dietz commented that a lot of the write-offs were apartments and that maybe the deposit
amount would need to be revisited. Discussion followed regarding the time line before the
disconnection.
Daryl Thompson moved to approve the Fourth Quarter Write -Offs as presented. AI Nadeau
seconded the motion. Motion carried 3-0.
5.3 2012 Pick-up Truck Purchases
Approved in the 2012 budget were three Ford F250 pick-ups. Midway Ford was awarded the
State Bid for Ford F250 pick-ups. A quote was also acquired from Elk River Ford, but their quote
was $600 more per truck. Discussion followed.
Al Nadeau moved to make a resolution to award the bid to Elk River Ford if they would match
the State Bid.
Further discussion followed. With Elk River Ford being a customer and local tax payer, the consensus
was to ask Elk River Ford to match the State bid or come down within $200 per pick-up.
Al Nadeau amended the motion to award the bid to Elk River Ford if they would come down to
within $200 per pick-up. Daryl Thompson seconded the motion. Motion carried 3-0.
6.1 Staff Updates
Troy Adams informed the Commission that an offer has been made on some land for a data
center. John Dietz asked if ERMU would have to do some infrastructure changes to support an
additional data center. Troy Adams affirmed. Discussion followed.
David Berg reviewed the draft for the Water Conservation Rebate Application. Discussion
followed. Consensus was to specify this to be a Water Conservation Program for irrigation services.
Tom Sagstetter said he would make the necessary changes to the application and have it ready for
spring implementation.
John Dietz asked Mark Fuchs the status of the Switchgear that recently blew -up. Mark Fuchs
said the cabinet was at the factory and they are going through it to find out what happened.
Peter Beck updated the Commissioners on the recent discussion at the City Council workshop
session regarding private utility repair assessment.
John Dietz said he was approached by a citizen that asked if there could be a box on the utility
bill to check if they were a veteran. Discussion followed as to the legality and confidentiality of this.
John Dietz said he would get more information on what this would be used for and bring back for
further discussion.
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Regular meeting of the Elk River Municipal Utilities Commission
January 10, 2012
Daryl Thompson brought up the Yellow Ribbon Program that the City of Elk River is hopefully
getting involved with. This is a new program to help veterans and military personnel and their
families. He felt it was a good program and encourages ERMU employees to get involved. John
Dietz explained the Yellow Ribbon Program and what they do.
6.2 Set Date for Next Meeting
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, February 14, 2012, 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 at 5:15 p.m. Al Nadeau seconded the motion. Motion carried 3-0.
Minutes prepared by Judy McSpadden.
John J. Dietz
Chair, ERMU Commission
Tina Allard
City Clerk