2.2. ERMU MINUTES 11-13-2012ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
October 9, 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;
Kim Sandstrom, Recording Clerk
Art Gatchell, Scott Thoreson, Tom Geiser, Grant Orrock, Matt Schwartz,
Adam Freiberg, Chad Grande, Dick Wagner
Others Present: Cal Portner, City Administrator;
Peter Beck, Attorney from Gray Plant Mooty Law Firm;
Chuck Elsbeny and Eric Fortman, Business owners from New Plastics Plus
1.0 CALL MEETING TO ORDER
John Dietz called the October 9, 2012 meeting to order at 3:35 p.m.
1.1 Pledee of Allegiance
The Pledge of Allegiance was recited.
1.2 Consider Utilities Agenda
Al Nadeau moved to approve the October 9, 2012 Utilities Agenda. Daryl Thompson
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 September Check Register
2.2 September 11, 2012 Regular Meeting Minutes
2.3 Financial Statements
Al Nadeau seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Cormnission
October 9, 2012
3.0 OPEN MIC
Art Gatchell, ERMU employee
Art asked to address the commission (on behalf of the linemen) as to the recent loss of linemen.
Art's last day was today, while three others have left in the last two years. He feels the lineman
deserve to be paid on the metro average pay scale and they are currently not. He also states that
we have the best lineman in the state and it would be a shame to lose any more of them due to
the lower pay. Daryl Thompson thanked Art for his comments and said they will be taken into
consideration.
Chuck Elsberry and Eric Forhnan, Business owners from New Plastics Plus
They discussed the need for ERMU to consider demand rate programs that make ERMU rates
more competitive. Discussion of existing programs offered by ERMU and other utilities in the
area occurred. The commission asked staff to review options and report back.
4.0 OLD BUSINESS
4.1 Power Supply Options / Resource Planning
Troy provided a wholesale power supplier grid to compare the suppliers we have visited with
for supply options. He went through the various criteria listed and stated reasons for the
various ratings. Commission directed staff to continue to work with the top few potential
power suppliers on power contract and membership opportunities.
4.2 Capacity Credit Agreement for Diesel Power Plant
The commission was in agreement to let the current GRE capacity agreement expire.
Daryl Thompson made a motion to let the contract expire, Al Nadeau seconded the motion.
Motion carried 3-0.
5.0
5.1 Review and Consider 3rd Ouarter Write-offs
Staff presented third quarter delinquent items totaling $52,186.29 for items June through
August 2012. Discussion followed on the Revenue Recapture program through the state,
where funds are collected from tax refunds and remitted to us.
Daryl Thompson made a motion to accept the Yd quarter delinquent accounts, Al
Nadeau seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
October 9, 2012
5.2 Review and consider 2013 Fee Schedule
Daryl Thompson questioned whether the $20.00 NSF fee should be raised to $30.00. The
commission decided to leave the fee at $20.00.
Al Nadeau made a motion to accept the 2013 Fee Schedule, Daryl Thompson seconded
the motion. Motion carried 3-0.
5.3 Review 2013 Budget: Water & Electric Expenses
hi preparation for submittal in November, Staff continues to work through the 2013 budget
process. As budgeted without any water rate increase, the water department would see a 5.5%
loss. The Commission felt that a water department rate increase of 5.5% is too much in one
year. Electric department's rates need to increase 4.5%, to cover the increase of our wholesale
power cost. Staff will be bringing back more information in November and final numbers will
be decided in December.
5.4 Minnesota Municipal Utilities Association Safety Management Program
Contract — 2012-2013 Renewal
ERMU's cost for the contract would increase by $2,000.00 for a total of $18,950.
Daryl Thompson made a motion to renew the MMUA safety management program
contracts, AI Nadeau seconded the motion. Motion carried 3-0.
5.5 Resolution Recognizing Public Power Week
Elk River Municipal Utilities, now in their 65a' year operating as a municipally owned public
power utility, will be celebrating 2012 PUBLIC POWER WEEK, October 7-13, 2012. On
October 1, 2012, the City of Elk River Council adopted a resolution proclaiming PUBLIC
POWER WEEK, and the Commission is asked to do the same. We are proud to be a public
power utility and to help make our community a great place to live and work.
Al Nadeau made a motion to adopt the resolution recognizing Public Power Week, Oct
7-13, 2012, Daryl Thompson seconded the motion. Motion carried 3-0.
6.0 OTHER BUSINESS
6.1 Staff Updates
Troy reviewed a map showing the various energy providers' service territory lines that
the state has been working on to have recorded boundaries in place. He noted that we only have
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Regular meeting of the Elk River Municipal Utilities Commission
October 9, 2012
a small discrepancy with one of our neighboring providers, however, the state recognizes it as a
disputed territory line and we are working with the provider to resolve it. Missouri River has a
meeting coming up on October 25`h that Troy will be attending and he invited any of the
commissioners to accompany him. The commission asked about the progress on the house to the
north of 1639 Main Street and Troy is still working with the current owner on this and the owner
is obtaining an appraisal. Troy is working with a management company to rent out the 1639
Main Street location.
Theresa informed the commission of an incentive program that Resource Training and
Solutions (RTS) is offering its participants by taking an online Health Risk Assessment this year
and following up with a Biometrics Assessment the following year. Participants would receive
the incentive by having their health insurance premiums reduced by $200 in 2013 and $240 in
2014 via payroll. RTS would reimburse ERMU for this premium reduction.
The commission asked Dave about the motor he is having replaced, if it was worth
having the motor sent in and repaired versus replacing it. Dave said no and explained why not.
Mark provided an update that Chad Grande gave his notice and will be done on October
19`h.
6.2 Set Date for Next Meeting
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, November 13, 2012, at 3:30 p.m.
6.3 Adiourn Regular Meeting
Daryl Thompson moved to adjourn the regular meeting of the Elk River Municipal
Utilities Commission at 5:35 p.m. Al Nadeau seconded the motion. Motion carried 3-0.
Minutes prepared by Kim Sandstrom.
John J. Dietz
Chair, ERMU Commission
Tina Allard
City Clerk