3.2. ERMU MINUTES 05-08-2012ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
April 10, 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;
SMMPA Representatives, David Geschwind, Executive Director &CEO;
Larry Johnston, Director of Corporate Development, Agency Relations
and Officer of Legislative & Regulatory Affairs
1.1 Call meeting to order April 10, 2012
John Dietz called the April 10, 2012 meeting to order at 3:30 p.m.
2.1 Consider Utilities Agenda
Daryl Thompson moved to approve the April 10, 2012 Utilities Agenda. Al Nadeau
seconded the motion. Motion carried 3-0.
CONSENT AGENDA (Approved By One Motion)
John Dietz had a question on the check register, staff responded.
Daryl Thompson moved to approve the Consent Agenda as follows:
3.1 March Check Register
3.2 March 20, 2012 Regular Meeting Minutes
3.3 Financial Reports
3.4 Approval of Capacity Credit Agreement Notice of Termination Extension
Al Nadeau seconded the motion. Motion carried 3-0.
OPEN MIC
No one appeared for open mic.
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Regular meeting of the Elk River Municipal Utilities Commission
April 10, 2012
4.1 Update on Power Supply Options / Resource Plannin¢
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 1" 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 said over the last couple of months ERMU has talked about different options
available for our wholesale power contract. Troy Adams introduced the representatives from
Southern Municipal Power Agency (SMMPA) to give an overview of their agency. Discussion
followed.
4.2 Review and Consider Holiday L.E.D. Lightina Award Proamm
At the March 20, 2012, ERMU Commission meeting, staff was directed to research the holiday
lighting contest that Princeton Public Utilities sponsors. Tom Sagstetter reviewed the costs associated
with a lighting contest. The one requirement of Princeton was that they must be an electric customer.
John Dietz agreed that participants should be an ERMU electric customer and asked what the other
commissioners thought. More discussion followed. Al Nadeau and Daryl Thompson thought it was
worth a try. John Dietz said he would like to try it on a one year basis.
AI Nadeau moved to try for one year, the program for Holiday Lighting. Daryl Thompson
seconded the motion. Motion carried 3-0.
4.3 Update on Water Conservation Program
At the March 20, 2012, ERMU Commission meeting, staff was directed to bring back the
commercial irrigation water conservation program marketing information and discuss implementation
of the new pilot program. There has been discussion in the past months on laws that pertain to water
conservation programs for Public water suppliers serving more than 1,000 people. In April 2012,
Governor Mark Dayton signed into law, water conservation measures that are consistent with the
commercial irrigation water conservation pilot program. The new law states that, "Public water
suppliers serving more than 1,000 people must encourage water conservation by employing water use
demand reduction measures..." The Commercial Irrigation Water Conservation Program would meet
or exceed the requirements of the law.
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Regular meeting of the Elk River Municipal Utilities Commission
April 10, 2012
Tom Sagstetter reviewed the marketing brochure and application. Discussion followed. David Berg
provided a cost savings analysis for 2011 of the customers that are on the SMART Irrigation program.
The statistics show an average of 43% savings on their water consumption.
5.1 Review 2011 Annual Report to the Utilities Commission
Troy Adams discussed the 2011 ERMU Annual Report. Extra reports were printed so the City
of Elk River could provide them to potential businesses that are looking into moving to this area.
Discussion followed. Consensus of the Commission was this was a professional looking report and to
let staff know they did a great job.
5.2 Review and Consider Mini Excavator Purchase
Approved in the 2012 budget was a mini excavator. RDO Equipment was awarded the State
Bid for Hitachi compact excavators. Mark Fuchs reviewed the state bid and the reason for this
purchase.
Al Nadeau moved to approve the purchase of the 2012 Hitachi Compact Excavator as presented
for $30,410. Daryl Thompson seconded the motion. Motion carried 3-0.
5.3 Review and Consider 1" Quarter Write -Offs
First quarter write-offs cover items from December 2011 through March 2012 and total
$30,960.61. This amount is comprised of $2,750.98 sent to a collection agency, and $1,471.70 that
will be written off with no further collection effort. Utilizing the Revenue Recapture program
available through the state, ERMU submitted $24,015.61 to be collected, and there is also $2,722.32
that will be assessed this fall for the assessable services of water, sewer, and trash. Discussion
followed.
Al Nadeau moved to approve the 19t quarter write-offs as presented. Daryl Thompson seconded
the motion. Motion carried 3-0.
5.4 Review and Consider Private Water Line Repair Costs Memorandum of Understanding
At the April 2, 2012, Elk River City Council meeting, an Ordinance was adopted allowing for
the assessment of costs associated with private utility line repairs which included a Petition, Waiver,
Agreement and Policy based on the Ordinance, and a Memorandum of Understanding with Elk River
Municipal Utilities regarding Payment of Private Water Line Connection and Repair Costs.
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Regular meeting of the Elk River Municipal Utilities Commission
April 10, 2012
Troy Adams reviewed the policy and agreements and recommends flagging the properties that
have sewer and water available but have not hooked up which is currently around 200. If their septic
or well fails we can require them to hook up to the sewer and water system.
Al Nadeau moved to approve and execute the Memorandum of Understanding with the City of
Elk River regarding the Private Water Line Repair Costs. Daryl Thompson seconded the
motion. Motion carried 3-0.
6.1 Staff Updates
Troy Adams updated the Commission on the possible sale of the previous meter reading system,
territory acquisition, and a dispersed generation customer. John Dietz asked when the Jackson Street
water tower would be going on the National Historic list. Discussion followed regarding upkeep and
ownership.
John Dietz asked what the response was on the surveys from the Expo, Theresa Slominski
responded. John Dietz also asked how Energy Alley was perceived at the Expo, Tom Sagstetter
responded.
David Berg asked Commission if there could be two prizes awarded for the contest for the cover
of the Water Conservation report, $50 for first place and $25 for second place.
Daryl Thompson moved to add a second place award for the Water Conservation Report cover
contest, retroactive to the contest for this year. Al Nadeau seconded the motion. Motion carried
3-0.
Mark Fuchs updated the Commission on the downtown lot where the building was removed and
what the future plans were for lighting in this area.
6.2 Set Date for Next Meeting
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, May 8, 2012, at 3:30 p.m.
The regular meeting of the Elk River Municipal Utilities was recessed at 5:15 p.m.
6.3 Closing of Meeting
The Commission reconvened to a closed meeting at 5:20 p.m. pursuant to MN Statute 13D.05,
Subd. 3(a) for an employee performance evaluation of Utilities Director Troy Adams. There being no
further business, John Dietz closed the special meeting at 6:34 p.m.
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Regular meeting of the Elk River Municipal Utilities Commission
April 10, 2012
The Commission reconvened the regular meeting at 6:35 p.m.
6.4 Adiourn Regular Meeting
Al Nadeau moved to adjourn the regular meeting of the Elk River Municipal Utilities
Commission at 6:40 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