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3.0 ERMU MINUTES 08-12-2008ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION HELD AT UTH.TIUS CONFERENCE ROOM July 15, 2008 Members Present: Jerry Takle, President; John Dietz, Vice Chair; Jerry Gumphrey, 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: Lori Johnson, City Administrator 1. Call meeting to order July 15, 2008 President Jerry Takle called the July 15, 2008, meeting to order. 2. Consider Utilities Agenda Bryan Adams and John Dietz added items to discuss under Other Business. John Dietz moved to approve the July 15, 2008, Utilities Agenda Jerry Gumphrey seconded the motion. Motion carried 3-0. 3. Consider Consent Agenda John Dietz questioned why there was overtime, staff responded it is from on-call time and incidents that happen after hours. John Dietz moved to approve the Consent Agenda as follows: June Check Register June 10, 2008, Minutes Financial Reports Jerry Gumphrey seconded the motion. Motion carried 3-0. 5.1 Staff Updates Lori Johnson informed commissioners that the Elk River City Council approved financing $250,000 of the new trunk water main along 193rd Avenue for the road extension project and will use Connexus Energy to install lights on Hwy 10. Bryan Adams said staff has been fielding several complaints regarding high bills. Many employees are asking about going to a 4 day work week as a strategy to save money. The commissioners felt that because of the need to be open 5 days a week, and with staff working longer hours utilizing computers, lights, etc., this would not save energy it would cost the utilities more. Well #9 is now pumping, with much higher manganese levels than was Page 2 Regular meeting of the Elk River Municipal Utilities Commission July 15, 2008 detected in the test well. Hopefully this will work itself out so additional treatment won't be necessary. On Monday there was a major outage affecting 1/3 of Elk River. This was caused by a transformer exploding when it was being refused. The top of the transformer blew off and hit the overhead three phase conductors causing an arc, a chain of events happened causing the substation to shut down. Troy Adams said it was discovered that the recloser controller at the substation failed. Jerry Gumphrey asked what was learned from this incident. Glenn Sundeen responded that this substation was scheduled for testing this fall and that maybe the testing schedule should be more often that the six year interval it is now on. Jerry Takle agreed that the testing should be done more often. Glenn Sundeen updated the commissioners on the current projects which include Brentwood cable replacement, Area 18 preliminary work, County Road 39 construction, and replacing transformers in the Ridgewood East area. Staff continues working on mapping updates, fuse coordination, and changing out old cutouts. Sherburne County called to have three poles moved along County Road 1 north of 221 a Avenue. This overhead line is very old and in need of replacement. Staff recommends installing this section underground at a cost of approximately $25,000. Consensus was to proceed with upgrading the overhead cable to underground cable in this area. Theresa Slominski said staff still has issues with the stuffing machine. The service technicians are helping to solve the issues with paper thickness and programming. A capital equipment refund claim has been applied for, totaling approximately $148,000. Starting this month the transit tax of .25% is in effect for customers in Hennepin County. Reports are being finalized to various Federal and State agencies for Kwh purchased and sold. Information is being gathered and submitted to fulfill GASB 45 compliance for our auditors. David Berg said the meter and pumps are installed at Well #9. Staff is working with street department on the road resurfacing projects and bringing the water valves up to grade. The generators are being utilized at the well to reduce peaking hours. Troy Adams said since the outage a lot of testing has been done to pinpoint the problems. Troy commended the staff for restoring power in just over 12 minutes. The security department had 11 sales and 20 service calls in June. Locates are down, so staff has been updating the mapping systems. Staff continues to replace old style meters in areas that are radio read. Also, staff has been doing transformer analysis and testing of the current transformers (CT's) and potential transformers (PT's) for commercial accounts. The summer safety camp was a big success. Mike Thiry did a good job educating the attendees. 5.2 Review Salary Structure Study At the June 2008 Elk River Municipal Utilities Commission meeting, staff was directed to secure a proposal for a pay structure evaluation and comparable worth evaluation. In 2006 the City had a similar study completed. The City received two proposals but both use their own point evaluation system. Elk River Municipal Utilities has used Hay Group for this type of work and uses their Job Profile method of job evaluation. It does not make much sense to Page 3 Regular meeting of the Elk River Municipal Utilities Commission July 15, 2008 change job evaluation methods. Bryan Adams reviewed the Hay Group proposal. John Dietz asked Lori Johnson to brief the Commission on the City's procedure and their rate structure. John Dietz asked Lori Johnson to procure a quote from the company that performed their study so comparisons can be made. 5.3 Review & Consider Waee Adiustments During the Comparable Worth discussions at the June 2008 Elk River Municipal Utilities Commission meeting, a couple issues were discussed and asked to be brought back at the next meeting. The issues were the meter reading contract through McBrady Meter Reading, contract increase for CIP and special projects Consultant Vance Zehringer, and salary adjustment for the office clerk position. The current contract versus the proposed contract for the meter reading was reviewed. Bryan Adams met with Pat McGrady of McBrady Meter Reading and he approved of this proposal. In summary, it would be the same cost as negotiated in 2004 except Elk River Municipal Utilities would receive a 40% decrease for the meter readings being read with the FC200 handheld radio device. Vance Zehringer is the part-time consultant who handles the CIP program and special projects, including customer visits. The last contract increase was in June 2007, staff recommends an increase of $2 per hour. Four people are currently classified as Office Clerk. The surveys performed show this position has a large spread in pay depending on the actual duties. Staff recommends a $1 per hour wage increase. Jerry Gumphrey moved to approve McBrady Meter Reading contract, $2 per hour raise for consultant Vance Zehringer, and $1 per hour raise for the four Office Clerks. John Dietz seconded the motion. Motion carried 3-0. 5.4 Review & Consider Bid Tabulation for Electric Line Truck At the June 2008 Elk River Municipal Utilities Commission meeting, authorization was given to prepare specifications and secure bids to replace a 1999 Electric Line Truck. The bid tabulation was reviewed and staff recommends awarding the bid to the lowest responsive bidder, Dueco, with trade-in. John Dietz asked why the old truck was not being kept for a spare. Staff responded the cost would be a lot considering it would need to have new hoses, be supplied with tools, licensed, and insured. Glenn Sundeen said when a truck does need repair, the crew will use a digger truck until their truck is repaired. Jerry Takle moved to award the purchase of the Electric Line Truck to Dueco, the lowest responsive bidder. Jerry Gumphrey seconded the motion. John Dietz abstained. Motion carried 2-0. Page 4 Regular meeting of the Elk River Municipal Utilities Commission July 15, 2008 5.5 Update Water Shut-offPolicv At the June 2008 Elk River Municipal Utilities Commission meeting, a water shut-off policy was discussed. Staff was directed to draft a proposed policy with the Elk River Municipal Utilities personnel doing the shut-off, and have Attorney, Ron Black review it. Staff recommends requiring a $600 non-refundable payment for turning off the water service. Discussion followed regarding services that have to be dug up if curb stop is bent or broken. Staff responded the $600 would be put in a fund to compensate for these issues. Also discussed was the time frame of turning the water off. It could take days to wait for the check to clear. Jerry Gumphrey suggests adding electronic transfer fee after $600 payment so funds could be available sooner. John Dietz moved to approve the Water Shut-off Request agreement adding the wording electronic transfer payment processing and work will not be performed until funds have cleared. Jerry Gumphrey seconded the motion. Motion carried 3-0. 5.6 Review Pricing for Street Light Projects At the June 2008 Elk River Municipal Utilities Commission meeting, Highway 10 street light replacement, and street lighting along with a trunk water main for the 193`d Avenue road extension project were discussed. Staff was directed to provide costs for these projects. The City was provided with an estimate to install City owned poles and light fixtures along the Hwy 10 corridor. They have decided to go with a proposal received from Connexus. Their proposal was to provide, install, and maintain all the lighting for the Highway 10 street light replacement. The 193rd Avenue Road extension project has two issues that need to be addressed. First is the street light installation. A lighting layout of the proposed street lights was reviewed. A cost estimate for this lighting project is $55,000. This will be addressed at a future City Council meeting. Secondly is who will be funding the trunk water main installation. As Lori Johnson stated in the Staff Updates, the City has agreed to fund this portion of the trunk water main. 5.7 Black Dirt Ordinance Update The proposed black dirt ordinance was reviewed. The City Planning Commission tabled this issue for they did not think there were many buildable lots left in the water district, and to implement this now would seems unnecessary, they also were concerned about enforcement issues. Discussion followed and consensus was to bring the Black Dirt Policy to the City Council for their consideration. Page 5 Regular meeting of the Elk River Municipal Utilities Commission July 15, 2008 6.1 Review MMUA Safety Program Mike Nemes, the MMUA East Central Regional Safety Coordinator sent a letter regarding the evaluation of the 2007 safety and loss control programs and gave an over-all rating of solid good. 6.2 Review & Consider 2"d Quarter Write-offs Second quarter write-offs totaling $24,992.73 were reviewed. John Dietz asked if this was average for a quarter, Theresa Slominski responded it was. John Dietz moved to approve the 2"d quarter write-offs as presented. Jerry Gumphrey seconded the motion. Motion carried 3-0. Other Business A Riverview Community Bank corporate resolution granting signing authority to commission and appropriate staff was signed at this time. Resolution is attached to the minutes. Jerry Gurnphrey asked Theresa Slominski if the new stuffing machine is cost effective for the monthly billing versus outsourcing. Theresa replied that it is the same cost and with -in our control. When issues arise we can take care of them in house. Jerry Gumphrey suggested staff set up specs for the possible demolition of the old water tower on Jackson Street. The Elk River City Council and the Heritage Committee have not met yet to discuss this issue. John Dietz said he received a call from a concerned customer regarding his high water bill. John explained the reason for the higher tier water rate to the customer. The customer felt it was much higher than the surrounding communities. Discussion followed regarding the rates. Bryan Adams said a rate comparison was performed last year and he would get that information to John for when he called the customer back. The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be Tuesday, August 12, 2008. President Jerry Takle adjourned the regular meeting of the Elk River Municipal Utilities Commission at 5:10 p.m. paddeil A Adams Manager Releued w Pi this document a5 `Flnaraiol 1.151daKon' Heterred to in this document a$ "Corperaaoo" BRYAN ADAMS _ _ _ _ celtrly that 1 am Secretary Iclerkl of the abov¢ named corporation cRamred uMar inc ::rwx n _ Pi1NNESOTA .Federal Em,^,dyer t.U. Number J 1-6005 ] 25 , engaged in basmpss under tore rade name; n _ELR 1?1VEP. KaNICI PAS GTLiTI , and ehet diol rasplOdpm. on ngs dochmen% are a cc,, el cony nt me resplubrms - adopted at a meebry of rhe Board of D:er,lvs of Hrn Corparaboo duly and properly Called and hold on ___ fre`-rLR inn o 7115-10.9 Idle These hei.lebron; aplMar m the minutes of dies n:eeung and have not been wSprNed or modified. AGENTS Any Arinnt lift below, sublec[ to any w,iucn. lrmitmrnns. is aothor¢ed to mobliser the powers granted as hibealcd Irelow: Name mM iifle of 4xmidon A'-_JEROME— i*inE;—GORMI SS40NF.R B, JERRY GUMPHREY. CON]MISSIONER L. JOHN DIETZ, COPLMISSIONER THERESA J SLOMINSI:i Signature Forest nuIf, Signotrre. {d used) POWERS GRANTED ;Altaeb one or n ,, Agents In eacn power W pluoang the letter eorrespondrrg to lhtar name ai the rima hr:'ore each power. Following eocll power rmLcain the camber of Agenl signatures required to ozeraso the power, Mirate A. B. 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(+1 ❑am nln a .,wan base tnf the purpose u: renting_ mam[am.9y, ucuss:ng and offmAdrna a Saba Ilgna:.i RCa rr. oris Fnranual Im:nlu;e:n. �_--- _.. P; Otherr ._.. ._ (.IMITATIONS ON POWERS I tui Lr'In,vrrvl are [ho Cognim:ion'•: ru;rmsr. limir:nioriv err L`s porzem gtim(n,<f unr!or Inns r.::ahirimr. EFFECT ON PREVIOUS RESOLU(IONS Itas reSaluann SLIP, 'SedeS !csotubun dated _ __ . If not ,ompbrte4 all rr:so)uaons roam m ef'ec CERTIFICATION OF AUTHORITY I !order ccrtilY that the Board of Directors of Ric Corperaann has, and at rho lint, W adrrpunn of this m,50unon had, lull frawn, and lavAul apthonpf :h adopt the rwrotet, en po)C 2 hold to corbtl the lo -all 9r1m,r) above In IbIn,,ot,snns rWn yl Whe hava lal p0'.cer, and l;rrvtul authvniy rn cin:c¢e ,M• C.'Apply a'birth. v:hn llf.i c i F111 1:4eeked, 01C Cocorarrl.Ln e' nzo, I ft rofpnra6n1 N W VJberaol I hf.a" beCrib d o name Lh5 roe hN. n• 1 11. I Iha seal o11Uie elevMrtln J — A Jy/_y- Waited. 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