3. ERMU MINUTES 03-11-2008ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
February 12,2008
Members Present: Jerry Takle, President; Jerry Gumphrey, Vice Chair; James Tralle, Trustee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
David Berg, Water Superintendent;
Theresa Slominski, Finance Director/Office Manager;
Troy Adams, Engineering Manager; Judy McSpadden, Recording Clerk
Others Present: Ray Wuolo, Barr Engineering
1. Call meeting to order February 12, 2008
President Jerry Takle called the February 12, 2008, meeting to order.
Jerry Takle requested 5.2 be visited fust to accommodate Ray Wuolo from Barr Engineering.
5.2 Review Water Resource Options
Barr Engineering was retained to do a cursory study to identify water supply alternatives
for Elk River. Ray Wuolo reviewed the regional geology issues and the characteristics of our
current wells and future wells. Utilization of available "drift" wells appear to be a good
supplement to the Mt. Simon Hinkley aquifer wells we now use.
2. Consider Utilities Agenda
James Tralle moved to approve the January 15, 2008, Utilities Agenda. Jerry Gumphrey
seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
Theresa Slominski reviewed a draft of the financials. James Tralle moved to approve the
Consent Agenda as follows:
January Check Register
January 15, 2008, Minutes
Financial Reports
Jerry Gumphrey seconded the motion. Motion carried 3-0.
5.1 Staff Up -dates
Bryan Adams informed the commission that the electric consumption compared to last
year is 12% higher and water is up 7.7%. He also informed them that there will be new
standards for brand new transformers making them 98% efficient, therefore increasing the cost
15-40%. The Public Utilities Commission (PUC) would like to digitize the electric territory
maps. In this process it was identified that there have been changes that have not been
reported to the PUC such as the territory acquisitions from Connexus, lot changes, etc.
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Regular meeting of the Elk River Municipal Utilities Commission
February 12, 2008
Bryan presented an example of the water conservation item for 2008, high efficient
showerheads. These will be given out at the Business Expo in April.
Glenn Sundeen reported the crews are still tree trimming and are also in the process of
replacing the faulty cutouts discussed last month. Glenn also discussed the Arcflash study and
the differing opinions among municipalities and co-ops affected. This will be revisited when
there is an agreeable decision. James Tralle asked if the lineman were safely protected, Glenn
affirmed. Sherburne County has new requirements for road work. They are now requiring
flaggers, cones, signs, etc, when working on a county road. James Tralle asked if laborers
should be hired for this type of work thus freeing the lineman to do their jobs. Glenn
responded it would be difficult to plan because it would be for short durations.
Troy Adams informed commissioners of 12 security sales for the month of January. Staff
continues to work with fuse coordination. Meter upgrades to radio read for electric and water
are in progress. Staff has converted about 6000 of the approximate 9000 electric meters, and
about 2000 of the approximate 4000 water customers. Staff is in the process of mapping
updates acquiring the new GIS base maps for the GPS system.
Theresa Slominski said 59 applications were received for the accountant position and
nine were being contacted for phone interviews to determine five to request an in person
interview.
David Berg reported on the painting of the equipment in the filter plants and the
inspections of filters. Maintenance of Well #7 is complete with the capacity back to normal.
5.3 Review MMUA Position Papers
MMUA is in the process of developing position papers on specific issues that relate to
municipal electric utilities on both state and national levels. MMUA's draft position papers
were reviewed. The legislative rally is scheduled for February 25'" — 27' in Washington D.C.
and March 12s' — 10 in Bloomington, MN. Commissioners were invited to attend, if
possible.
5.4 Review LFG Engine Maintenance Options
Previously discussed was the increased maintenance cost of the landfill engines due to
high H2S in the gas. The life span of the engine heads are between four to six months instead
of the expected 12 months. This problem is caused by sheetrock being buried in the MSW
portion of the landfill instead of the demolition landfill. There are 11 wells affected that are
causing difficulty. Typical landfill gas has less than 100 ppm (parts per million) of H2S, the
11 wells affected have 4,000 to 10,000 ppm of H2S. Discussion followed as to the options.
Consensus was to table this discussion until the outcome of the landfill expansion has been
approved and continue to replace the heads as are currently doing.
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Regular meeting of the Elk River Municipal Utilities Commission
February 12, 2008
6.1 Review ERMU Bill Printing Issue (verbal)
Billflash, the company that has been printing and mailing the monthly utility bills had a
problem with progranuning changes between their processing center and their printer. The
original bills sent out had correct information on the top of the bill but other or garbled
information on the bottom. Billflash agreed to send out corrected bills along with an apology
letter. The whole process caused a lot of confusion for our customers. Staff decided to bring
the billing process back in house. A new machine for stuffing the bills was recently purchased
along with the paper stock needed. Discussion followed regarding the payment request from
Billflash.
James Tralle moved to deny payment of any kind for this months' mailing due to their error.
Jerry Gumphrey seconded the motion. Motion carried 3-0.
6.2 Review and Consider Territory Acquisition
The 2008 budget contains a $300,000 line item to purchase Area 18. This area includes
101 customers and an overhead electric feeder line parallel to Highway 169 on the east side
from just south of Main Street to County Road 33. The budget also contains an $80,000 line
item to tie this newly acquired feeder to our Substation 14 with an underground line crossing
Highway 169. This will provide another tie line from Substation 14 to Substation North.
Staff recommends authorization to proceed with both budgeted items.
Jerry Gumphrey moved to proceed with the purchase of Area 18 and tie the newly acquired
feeder to Substation 14. James Tralle seconded the motion. Motion carried 3-0.
6.3 Review and Consider Grass Test Plot
Utility and City staff have been working on appropriate language for the proposed black
dirt policy that was discussed at previous meetings. City Attorney, Peter Beck is reviewing
this proposed ordinance. Bill Bronder with the Sherburne County Soil and Water
Conservation District is applying for a state grant to do some test plots using eco -grass. Mr.
Bronder is asking us to partner with his office on this test. Typical grass used in our area is
Kentucky Blue grass which requires much water, fertilizer, and frequent mowing. Kentucky
Blue grass is very drought intolerant and turns brown while going dormant with loss of water.
Eco -grass is a non-native fescue grass blend. This grass needs much less water and fertilizer
with extended mowing intervals and is more drought tolerant. Staff recommends
authorization be given to partner with Sherburne County Soil and Water Conservation District
to provide areas for test plots in high visible areas by Wells 42, #4, and #7.
James Tralle moved to approve the grass test plots. Jerry Gumphrey seconded the motion.
Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
February 12, 2008
Other Business
There was no other business.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission
will be Tuesday, March 11, 2008.
President Jerry Takle adjourned the regular meeting of the Elk River Municipal Utilities
Commission at 5:35 p.m.
Respectfully submitted,
Judy McSpadden
Recording Clerk \
Bryan Adams
(; al Manager