2.2. ERMU MINUTES 09-11-2012ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
August 13, 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;
Wade Lovelette, Technical Services Superintendent;
Tom Sagstetter, Conservation & Key Accounts Manager;
Judy McSpadden, Recording Clerk
ERMU Staff Absent: David Berg, Water Superintendent
Others Present: Cal Portner, City Administrator;
Peter Beck, Attorney from Gray Plant Mooty Law Firm
1.0 CALL MEETING TO ORDER
John Dietz called the August 13, 2012 meeting to order at 3:30 p.m.
1.1 Pledge of Allegiance
The Pledge of Allegiance was recited.
1.2 Consider Utilities Agenda
Daryl Thompson moved to approve the August 13, 2012 Utilities Agenda. Al Nadeau
seconded the motion. Motion carried 3-0.
2.0 CONSENT AGENDA (Approved By One Motion)
John Dietz had questions on the payroll register and financials, staff responded.
Daryl Thompson moved to approve the Consent Agenda as follows:
2.1 July Check Register
2.2 July 17, 2012 Regular Meeting Minutes
2.3 Financial Statements
2.4 Diesel Power Plant Capacity Credit Agreement Extension
Al Nadeau seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
August 13, 2012
3.0 OPEN MIC
No one appeared for open mic.
4.0 OLD BUSINESS
4.1 Discussion Regarding Property Adjacent To Diesel Power Plant
Located east of ERMU's power plant is a 6.6 acre lot. This property has no recorded
easement and currently accesses the property through the ERMU power plant property at 1705
Main Street. On July 17, the Utilities Commission authorized staff to begin evaluating the
specifics of the issue and work towards developing a mutually beneficial solution. The
authorization for preliminary work was limited to $4000.
The property has been deemed to be in the 100 year flood plain. Troy Adams informed the
Commissioners that he would be meeting with staff from the City of Elk River the following day
to go over the options. Discussion followed. Troy Adams will bring back a solution for
Commission approval at the next regularly scheduled ERMU Commission meeting in
September.
5.0 NEW BUSINESS
5.1 Review 2013 Budget Schedule: Travel and Training, Dues/Subscriptions/Fees,
Personnel
Discussion followed regarding the travel and training budget. John Dietz and Daryl
Thompson voiced their concern on the cost of the APPA meetings out of state. Troy Adams and
Al Nadeau talked about the importance of these meetings and recommended they attend one of
these meetings before deciding to cut them from the budget.
Troy Adams reviewed the Dues and Subscriptions along with the personnel projection for
2013. No action taken at this time.
5.2 Adoption of the American Public Power Association Safety Manual 15`" Edition
In April 2012 ERMU received the Reliable Public Power Provider (RP3) recognition from
the American Public Power Association (APPA). One of the categories that the APPA scores for
the RP3 recognition is formally adopting a safety manual.
Although ERMU has used the APPA safety manual as well as an ERMU safety manual for
many years, ERMU has never formally adopted a safety manual.
Al Nadeau moved to formally adopt the 15th edition of the American Public Power
Association Safety Manual. Daryl Thompson seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
August 13, 2012
5.3 Review and Consider Fiber Optic Network Partnership
ERMU has been struggling with limitations in the phone and computer network systems.
Dependent upon a third party provider of communication conductivity between the office and the
field services building, the Utilities have experienced limited bandwidth, poor sound quality, and
poor customer service. ERMU has been considering installing a dedicated communication link
between the field services building and the office. The City of Elk River has been experiencing
similar issues serving their remote buildings. Their IT division has been exploring options to
create a city fiber optic network. Sherburne County and the City of Elk River have also been
discussing the installation of a dedicated communication link between the Sherburne County
Government Center and City Hall.
Mi -Tech, a division of Michel's Corporation, will be installing fiber optics throughout Elk
River for a third party communications company. They have contacted ERMU about attaching
to the power poles. This would be the opportunity for a cost sharing partnership on their project.
ERMU, the City of Elk River, and Sherburne County have entered into discussions with
Mi -Tech and Michel's to explore the possibility of collaborating to build a fiber optic network
loop. Discussion followed. Consensus was to move forward with this project as long as the City
of Elk River and Sherburne County share in the cost.
Daryl Thompson moved to authorize John Dietz and Troy Adams to execute an agreement
with Mi -Tech for the fiber optic network loop at an amount not to exceed $99,000. Al
Nadeau seconded the motion. Motion carried 3-0.
5.4 Review and Consider Purchase of Property
The property at 1639 Main Street, north of ERMU's Field Services building is for sale.
Because of this property's location, it would be desirable for the Utilities to acquire for future
expansion, storage, or parking needs.
Troy Adams asked Commissioners if they would like to call a closed meeting to talk about
this item. Consensus of the Commission was to discuss this in the open meeting. Discussion
followed regarding the location, value, zoning, and management of this property.
Daryl Thompson moved to authorize Troy Adams to enter into negotiations for the
property located at 1639 Main Street NW and to bring back to the commission for
consideration. Motion carried 3-0.
6.0 OTHER BUSINESS
6.1 Staff Updates
John Dietz asked staff about the current phone system and messaging, staff responded.
Discussion followed.
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Regular meeting of the Elk River Municipal Utilities Commission
August 13, 2012
Troy Adams informed Commission of the Missouri River meeting he would be attending
in the near future. This would be the last of the agencies for power contract options.
John Dietz asked staff for the amount of fees ERMU has paid in the last year for the credit
card fees. Staff will look into that and bring back. John Dietz also asked about the PCA's
ERMU has paid to date and not passed on to the customers. Theresa Slominski responded the
PCA's billed to date are $273,000.
Tom Sagstetter gave an update on the commercial irrigation customers that have signed up
for the new program. The new flyer for commercial lighting was reviewed.
6.2 Set Date for Next Meeting
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, September 11, 2012, at 3:30 p.m.
6.4 Adjourn Regular Meeting
AI Nadeau moved to adjourn the regular meeting of the Elk River Municipal Utilities
Commission at 5:00 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