2.2. ERMU MINUTES 10-09-2012ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
September 11, 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;
Peter Beck, Attorney from Gray Plant Mooty Law Firm;
Rebecca Haug, Environmental Administrator for the City of Elk River
1.0 CALL MEETING TO ORDER
John Dietz called the September 11, 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 September 11, 2012 Utilities Agenda. AI Nadeau
seconded the motion. Motion carried 3-0.
2.0 CONSENT AGENDA (Approved By One Motion)
Daryl Thompson moved to approve the Consent Agenda as follows:
2.1 August Check Register
2.2 August 13, 2012 Regular Meeting Minutes
2.3 Financial Statements
2.4 Auburn Street Water Tower Lease Agreement with Sprint
2.5 Federal Energy Regulatory Commission Waiver of OASIS Requirements
3.0 OPEN MIC
No one appeared for open mic.
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Regular meeting of the Elk River Municipal Utilities Commission
September 11, 2012
4.0 OLD BUSINESS
4.1 Easement Considerations for Property Adjacent to Diesel Power Plant
(Parcel ED #75-133-4210)
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 $4,000.
Staff has been working with the City of Elk River on determining possible solutions.
ERMU contracted Hakanson Anderson to provide survey work. Proposed access routes were
staked. The City and State met at the site for a Technical Evaluation. Rebecca Haug,
Environmental Administrator for the City of Elk River, reported the proposed route or any route that
disrupts the wetland or wetland fiinge would not be supported. Discussion followed regarding other
options. Daryl Thompson said it was ultimately up to the property owner. Consensus was to grant a
temporary license agreement for access and to have the property owner work with the City and State
on alternatives. John Dietz directed staff to continue to consider options.
4.2 Purchase of Property (Parcel ID 475-411-0210)
The property at 1639 Main St NW (Parcel ID #45-411-0210), north of ERMU's Field Services
building, has been listed for sale. Because of the property's location, it would be desirable for ERMU
to purchase for future expansion, storage, or parking needs. At the August 2012 ERMU Commission
meeting, staff was authorized to negotiate the purchase of the property with final approval being
awarded by the ERMU Commissioners. Staff met with the Real Estate agent and inspected the home.
Staff submitted an offer letter and it was accepted. A purchase agreement has been drafted and is
awaiting commission approval. Discussion followed.
Al Nadeau moved to purchase the property at 1639 Main St NW for $134,900 and authorizes
Troy Adams to execute the purchase agreement. Daryl Thompson seconded the motion.
Motion carried 3-0.
Consensus was to allow staff to also explore the possibilities of purchasing the other adjacent
properties.
4.3 Fiber Optic Network Update
At the August 13, 2012 ERMU Commission meeting, approval was given for ERMU to partner
with the City of Elk River and Sherburne County in a fiber optic network. The ERMU Commission
authorized an investment in 1/3 of the project for up to $99,000.
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Regular meeting of the Elk River Municipal Utilities Commission
September 11, 2012
On September 24, 2012, the City Council gave approval to move forward with this 8 mile
infrastructure shared project. The shared funding between the City of Elk River and Sherburne
County has changed but the cost to ERMU is still estimated to be around $85,000. Discussion
followed. A final draft of the agreement will be presented at the next ERMU Commission meeting.
5.0 NEW BUSINESS
5.1 Tri -County Action Program Services Agreement
State Statute requires ERMU to spend .2% of residential gross operating revenue on programs
specifically designed for low-income eligible customers. Tri -County Action Program (Tri -CAP) is
the federally designated administrator for Sherburne County. In an effort to more effectively meet the
spending requirements, ERMU has developed a partnership with Tri -CAP.
Tom Sagstetter reviewed the Service Agreement with Tri -CAP. Discussion followed.
Daryl Thompson moved to approve the Service Agreement with Tri -CAP for up to $6,000. Al
Nadeau seconded the motion. Motion carried 3-0.
5.2 Review 2013 Budget 10 -year Capital Project Projections. 2013 Capital Proiects and
Eauiument Purchases, and the Conservation Improvement Program (CIP)
Troy Adams reviewed the 2013 budget containing Capital Projections, Capital Purchases and
Equipment, and the Conservation hnprovement Program. Discussion followed. No action taken.
5.3 Minnesota Municipal Utility Association Annual Summer Conference Update
In August, Minnesota Municipal Utilities Association (NIMUA) held their annual summer
conference. This year the three representatives from ERMU were Troy Adams, Mark Fuchs, and Al
Nadeau.
Troy Adams and Al Nadeau updated the Commission on the topics and importance of being at
these meetings. hi addition to this, Troy Adams was elected to the MMUA Board of Directors for a
three year term.
5.4 Insurance Options and Renewal
At the annual City, County and Other Government Agency insurance meeting on August 27,
ERMU received the health insurance renewal contract with a 0% increase. This is not typically
discussed for approval until the October meeting however, there is a timeline imposed on ERMU for
other reporting requirements relating to health insurance that requires a decision before October 1.
Theresa Slominski discussed the detailed reporting requirements and the timeline. Consensus was to
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Regular meeting of the Elk River Municipal Utilities Commission
September 11, 2012
stay with the current plan with the 0% increase. Theresa Slominski informed the Commission that the
dental insurance would have a 6.7% increase.
Al Nadeau moved to continue with the current health insurance plan for 2013. Daryl
Thompson seconded the motion. Motion carried 3-0.
6.0
6.1 Staff Updates
Troy Adams thanked Cal Portner for inviting him to the City Council meeting to meet the two
members running for City Council. Deb Walters, the Waste Management Manager at the Landfill,
retired August 31, 2013. They are currently seeking her replacement.
John Dietz asked if staff has responded to the concerns received from the customer surveys.
Theresa Slominski affirmed.
Tom Sagstetter reminded Commission of the upcoming LFG 10 year anniversary on October
100' from 1:00 to 3:00. John Dietz was asked if he could speak at the event.
6.2 Set Date for Next Meeting
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, October 9, 2012, at 3:30 p.m.
The Commission recessed the regular meeting at 5:30 p.m.
6.3 Closing of Meeting: "Meeting to be closed pursuant to MN Statute 13D.05, Subd.
3(c)(3) to develop or consider offers or counteroffers for the purchase or sale of real
or personal property."
a. Call Closed Session to Order
b. Discussion
c. Adjourn Closed Session
6.4 Adjourn Regular Meeting
Daryl Thompson moved to adjourn the regular meeting of the Elk River Municipal
Utilities Commission at 5:35 p.m. AI Nadeau seconded the motion. Motion carried 3-0.
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Regular meeting of the Elle River Municipal Utilities Commission
September 11, 2012
Minutes prepared by Judy McSpadden.
John J. Dietz
Chair, ERMU Commission
Tina Allard
City Clerk