2.2. ERMU MINUTES 06-12-2012ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
May 8, 2012
Members Present: John Dietz, Chair; Daryl Thompson, Vice Chair; Al Nadeau, Trustee
ERMU Staff Present: Troy Adams, General Manager;
Theresa Slominski, Finance and 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;
Rebecca Haug, Environmental Administrator for the City of Elk River;
Peter Beck, Attorney from Gray Plant Mooty Law Firm;
Jeff Peters, Missouri River Energy Services (MRES) Representative;
Andrew Berg, Abdo, Fick & Meyers
1.1 Call meeting to order May 8, 2012
John Dietz called the May 8, 2012 meeting to order at 3:30 p.m.
1.2 Pledge of Allegiance
The Pledge of Allegiance was recited.
2.1 Consider Utilities Agenda
Daryl Thompson moved to approve the May 8, 2012 Utilities Agenda. AI Nadeau
seconded the motion. Motion carried 3-0.
CONSENT AGENDA (Approved By One Motion)
John Dietz had questions on the financials, staff responded.
Daryl Thompson moved to approve the Consent Agenda as follows:
3.1 April Check Register
3.2 April 10, 2012 Regular Meeting Minutes
3.3 Financial Reports
3.4 Ratification of Easement Agreement
3.5 Approval of Utilities Director Job Position Changes
Al Nadeau seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
May 8, 2012
OPEN MIC
No one appeared for open mic.
4.1 Verbal Update on Jackson Street Water Tower
Rebecca Haug, Environmental Administrator for the City of Elk River, gave an update on the
status of the Jackson Street Water Tower. Discussion followed regarding the condition of the lid on
the water tower. Staff was directed to get bids on welding the lid on the tower and bring back for
approval.
4.2 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 ERMU's wholesale power contract. Troy Adams introduced Jeff Peters, Director of
Marketing and Development at Missouri River Energy Services (MRES) to give an overview of their
agency. Discussion followed.
5.1 Review and Receive 2011 Financial Audit
Audit Fieldwork was completed March 1 s' and 2id by ERMU auditors, Abdo, Eick & Meyers
(AEM). ERMU staff compiled the enclosed audit report this year, and AEM staff reviewed for
approval and issuance of opinion letter.
Andrew Berg of Abdo, Eick & Meyers reviewed the 2011 audit. Discussion followed. John
Dietz thanked Andrew Berg and staff for doing a great job on the report.
Al Nadeau moved to receive and file the 2011 Audit as presented. Daryl Thompson seconded
the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
May 8, 2012
5.2 Receive 2012 American Public Power Association Reliable Public Power Provider Award
Wade Lovelette on behalf of ERMU applied for APPA's RP3 Award. This award is based on a
report card that covers Reliability, Safety, Workforce Development, and System Improvements. Out
of over 2,000 public power utilities, ERMU is one of the 176 utilities to earn the Reliable Public
Power Provider (RP3 ) recognition from the American Public Power Association. Discussion
followed.
5.3 Discussion of Public Offices and Conflict of Interest Pertaining to Contracts
There have been recent inquiries by the members of the ERMU Commission regarding the
ability to submit bids for work or materials needed for the operation of the utilities. With a few
explicit exceptions, under Minnesota Statute 471.87, it is prohibited for any public officer who is
"authorized to take part in any manner in making any sale, lease, or contract in official capacity" to
have a financial interest in those actions. Discussion followed and recommendations were given from
legal counsel.
John Dietz moved to direct David Berg to get quotes for emergency plumbing services. Daryl
Thompson seconded the motion. Motion carried 2-0. AI Nadeau abstained due to conflict of
interest.
Staff was directed to get quotes on printing services. It was recommended by legal counsel to adopt a
conflict of Interest policy. Staff was directed to bring back a policy.
6.1 Staff Updates
Troy Adams informed Commissioners that the Landfill Gas Recovery Plant is going to be
having their 10 year anniversary and asked for Commission support to host a celebration. Troy
Adams also gave an update on the Diesel Engines, EPA is still unsure on the Rice Rule. GRE wants
to renegotiate the capacity credit contract. Automating the engines at the plant with a 10 minute
upload would be minimal cost or fully automating them would be a much larger cost but would make
a good bargaining tool with power supply companies. Staff will continue to research the options.
Troy Adams commented that Service Territory discussions for the development of an offer can be
held in a closed meeting. Discussion followed.
David Berg announced that the last public meeting for the Wellhead Protection Plan was held
prior to the commission meeting. The draft of the revised Wellhead Protection Plan was presented.
This revised plan covers a larger area and would replace the current plan. Peter Beck strongly
suggested putting this on the Agenda for next month. Consensus was to wait and bring back for
adoption at the next regularly scheduled ERMU Commission meeting.
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Regular meeting of the Elk River Municipal Utilities Commission
May 8, 2012
6.2 Set Date for Next Meetin¢
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, June 12, 2012, at 3:30 p.m.
6.4 Adjourn Reaular Meetin¢
Al Nadeau moved to adjourn the regular meeting of the Elk River Municipal Utilities
Commission at 5:15 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