3.2. ERMU MINUTES 04-10-2012ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
March 20, 2012
Members Present: John Dietz, Chair; Daryl Thompson, Vice Chair; Al Nadeau, Trustee
ERMU Staff Present: Troy Adams, Utilities Director;
Theresa Slominski, Finance Director/Office Manager;
Mark Fuchs, Line Superintendent; David Berg, Water Superintendent;
Wade Lovelette, Technical Services Superintendent;
Tom Sagstetter, Conservation & Key Accounts Manager;
Judy McSpadden, Recording Clerk
Others Present: Cal Portner, City Administrator;
Peter Beck, Attorney from Gray Plant Mooty Law Firm
1.1 Call meeting to order March 20, 2012
John Dietz called the March 20, 2012 meeting to order at 3:30 p.m.
1.2 Oath of Office
Daryl Thompson was sworn in as an ERMU Commissioner by John Dietz.
2.1 Consider Utilities Agenda
Troy Adams added 2.2 Election of Officers. John Dietz added a couple items under Other
Business.
Daryl Thompson moved to approve the March 20, 2012 Utilities Agenda with changes. Al
Nadeau seconded the motion. Motion carried 3-0.
2.2 Election of Officers
Al Nadeau moved to have John Dietz remain as Chair, Daryl Thompson as Vice Chair, and Al
Nadeau as Trustee. Daryl Thompson seconded the motion. Motion carried 3-0.
CONSENT AGENDA (Approved By One Motion)
John Dietz had questions on the check register, staff responded. Al Nadeau recommended ERMU
getting a company credit card. Consensus was for staff to look into this and bring back to the
commission. Al Nadeau questioned a check to a plumber for a water issue, staff responded,
discussion followed. Commission, staff, and legal counsel also discussed conflict of interest.
Daryl Thompson moved to approve the Consent Agenda as follows:
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Regular meeting of the Elk River Municipal Utilities Commission
March 20, 2012
3.1 February Check Register
3.2 February 14, 2012 Regular Meeting Minutes
3.3 Financial Reports
3.4 Approval of Dispersed Generation Tariff Documentation Changes
Al Nadeau seconded the motion. Motion carried 3-0.
OPEN MIC
No one appeared for open mic.
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 Cormnission 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.
Troy Adams updated the Commissioners on the discussions and information acquired in the last
month.
4.2 Update on Building Signage
In late 2011, ERMU Commission asked staff to research restrictions and regulations for signage
on the Power Plant. At the February 14, 2012, ERMU Commission meeting the Commission
approved proceeding with the lowest quote. Since then, there has been further discussion on the
proposed signage. Originally, staff proposed two separate building signs, but now recommends only
one sign. Discussion followed regarding the placement of the sign, response time of quotation, and
materials used.
Al Nadeau moved to accept the bid from Minuteman. Daryl Thompson seconded the motion.
Motion carried 3-0.
5.1 Review and Consider Purchase of Bucket Truck
As part of the 2012 Budget process, the Commission and staff reviewed the vehicle
replacements and replacement postponements. Included in this review was the analysis to replace
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Regular meeting of the Elk River Municipal Utilities Commission
March 20, 2012
Bucket Truck #5. The estimated replacement cost at the time was $175,000. This was included in the
2012 Budget which was approved by the Commission on December 13, 2011.
This type of equipment is not available through the Minnesota State Bids. However, National
Joint Power Alliance (NJPA) is a government service cooperative that had been created through MN
Statute 213A.21 and they have government contracts for this type of construction equipment. This
agency provides a similar service as the Minnesota State Bids and is able to do so by MN Statute
471.59 and 471.345.
Altec Industries, Inc has the contract with NJPA for this type of equipment. Discussion
followed regarding the replacement cost from last year to the current cost which exceeds the budgeted
amount by $4,329.
Daryl Thompson moved to approve the purchase of the new bucket truck with trade in of
bucket truck #5 from Altec Industries, Inc. for $179,329. Al Nadeau seconded the motion.
Motion carried 3-0.
5.2 Update from 2012 American Public Power Association Legislative Rally
The 2012 American Public Power Association Legislative Rally in Washington, D.C. was held
March 12-14. Minnesota municipal utilities meet with our elected officials on the last day of the
event. During this rally's Legislative and Resolutions Committee, ERMU also has the opportunity to
vote on APPA's policy on legislation, regulation, and other federal issues.
Troy Adams and Al Nadeau updated the Commissioners on the information they acquired along
with their experiences.
5.3 Review and Consider Holiday L.E.D. Lighting Award Program
At the February 14, 2012 ERMU Commission meeting, staff was directed to look into options
and bring back for further discussion.
Tom Sagstetter had several points of consideration to go over with the Commission. After
further discussion, staff was directed to check with the City of Princeton to see what they do and
revisit this at the next meeting.
6.1 Staff Updates
Troy Adams said he would be meeting with Sherburne County to discuss the potential of
expanding the LFG plant by adding more engines. A joint meeting between the City of Elk River and
Sherburne County will be coming up in April. This would be a good time to present the bonus check
to Sherburne County, based on the level of production from the LFG plant, which this year will be
$15,000. An assessment agreement will be presented to the City Council on April 2, 2012, and will
then bring to Commissioner for approval. John Dietz commented that there would be a special closed
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Regular meeting of the Elk River Municipal Utilities Commission
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meeting after the regularly scheduled ERMU Commission meeting in April for the performance
review of the Utilities Director under Minnesota Statute 13D.05, Subd. 3(a).
Theresa Slommski informed the Commissioners of the upcoming implementation of the Auto
Dialer system that was a budgeted for 2012. She also informed the Commissioners of a billing
adjustment that will be on the bills being sent out in March for the 2012 rate that was not updated in
the system for the January usage. John Dietz asked Theresa Slommski about customer surveys, she
responded that ERMU is looking at what the options are. Discussion followed.
David Berg reviewed the Customer Water Repair — Outdoor Leak procedure, along with the
listing of water service repair contractors.
John Dietz asked Tom Sagstetter if he was going to be contacting the customers in the tier 3
water rate regarding the new water conservation program. Tom responded he is working on a flyer to
send out to the commercial water customers this would affect. Tom Sagstetter added there would be a
mailing sent out to customers in April which will include the Wind Energy brochure with the cost
changing from $1.00 to 80¢ per block.
John Dietz talked about a couple of articles in The MMUA Resource newsletter. One being the
territory dispute between Moorhead and Red River and whether it could affect ERMU's relationship
with Connexus, another article was the Rice rules which would affect our boilers. Troy Adams
responded. John Dietz asked Troy Adams to look into the MMUA Scholarship Award Program
mentioned in The MMUA Resource newsletter.
6.2 Set Date for Next Meeting
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, April 10, 2012, at 3:30 p.m.
6.3 Adiourn Regular Meetin¢
Al Nadeau moved to adjourn the regular meeting of the Elk River Municipal Utilities
Commission at 4:50 p.m. Daryl Thompson seconded the motion. Motion carried 3-0.
Minutes prepared by Judy McSpadden.
John J. Dietz
Chair, ERMU Commission
Tina Allard
City Clerk