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3.2 ERMU MINUTES 05-12-2009ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION HELD AT UTILITIES CONFERENCE ROOM April 14, 2009 Members Present: John Dietz, President; Jerry Gumphrey, Vice Chair; Daryl Thompson, Trustee Staff Present: Vance Zehringer, Interim General Manager; Theresa Slominski, Finance Director/Office Manager; Troy Adams, Director of Operations; Mark Fuchs, Line Superintendent; David Berg, Water Superintendent; Judy McSpadden, Recording Clerk; Wade Lovelette, Superintendent of Technical Services; Richard Wagner, Michael Price, Shane DeFeyter, Chad Grande, Kim Sandstrom, Richard Cline, Art Gatchell, Adam Freiberg, Tom Geiser, Scott Thoreson, Lex Anderson Others present: Lori Johnson, City Administrator; Tim Simon, City Finance Director; Terry Maurer, City Public Works Director, Steve McDonald, Abdo, Eick & Meyers, LLP 1. Call meeting to order April 14, 2009 John Dietz called the April 14, 2009, meeting to order at 4:30 p.m. 2. Consider Utilities Agenda John Dietz requested agenda items 5.7 Discuss Pay Request for 2009, and 5.6 Review and Consider Dental Insurance Changes be moved up to accommodate employees and also 5.1 Audit Presentation for Auditor Steve McDonald. Daryl Thompson moved to approve the April 14, 2009, amended Utilities Agenda. Jerry Gumphrey seconded the motion. Motion carried 3-0. 3. Consider Consent Agenda Staff answered some questions from the Commissioners. Jerry Gumphrey moved to approve the Consent Agenda as follows: March Check Register March 10, 2009, Minutes Financial Reports Daryl Thompson seconded the motion. Motion carried 3-0. . • r7rT I: ;rr r ��. s, r.... I'ii of •r',• � 1: 1 � .i .. � /r•i.Gi fl .i. �—�,1. � L Page 2 Regular meeting of the Elk River Municipal Utilities Commission April 14, 2009 5.7 Discuss Pay Request for 2009 Previously, ERMU employees would present the wage proposal. The attorneys of Gray Plant & Mooty recommended management present the employee wage proposal this year and reevaluate the process for the future. Troy Adams reviewed the metro average survey and discussed the 2.78% pay request ERMU employees are asking for. John Dietz distributed a comparison sheet of benefits of City of Elk River employees compared to ERMU employees, after taking into consideration the dollar value of these benefits and due to the economic times he was against any pay increase. Daryl Thompson agreed, because of the public perception of a pay increase and with electric wholesale rates continuing to rise it would not be in the best interest of the Utilities at this time. Jerry Gumphrey said a percent to a percent and a half if anything but would like to keep the budget on track and revisit this in another 6 months. John Dietz moved for no pay increase with a review in 6 months. Daryl Thompson seconded the motion. Motion carried 3-0. 5.6 Review and Consider Dental Insurance Chan es The renewal information from Assurant Insurances was discussed. The current dental plan will have a 12.5% increase as of June 1, 2009. The options were discussed with employees and they were very understanding of the need to stay within the budget and are willing to select the plan with a larger deductible to keep the plan at the 0% increase. John Dietz commends the employees for recognizing the need for this contribution. He went on to say he felt that because of there being no wage increase, the employees should not have to do this and recommends keeping the current plan with the 12.5% increase to be split 75/25. John Dietz moved to continue the same dental insurance plan with the 75/25 split. Jerry Gumphrey seconded the motion. Motion carried 3-0. 5.1 Audit Presentation Steve McDonald of Abdo, Eick & Meyers reviewed the 2008 audit. Discussion followed. John Dietz asked Steve McDonald if other communities bill the owners of townhouses and apartments instead of the renter and he responded some do. Theresa Slominski said she would look into this. Jerry Gumphrey moved to receive and file the 2008 audit. Daryl Thompson seconded the motion. Motion carried 3-0. 11 L IT f. 1' , '+t -._:r -_ it-. •.d .r _ rri ,� : a' L - i ' ',s 6'.S .;..ln ,_ V ,; •,.f gip, .:r r, 1 I:�i !;'.' , . '. r`. '• IT'p: f.:: • �r71td 1 lulu .. r .,V .a 'SI• rt rI '' �_i•,i;_'=�:f>i.;i' .� .•air t.J.J 'i:l. :. 1 .: �, i : :, J .—, � f _ .,, .. I ',I t=i I I r 1 1 .1 11 _, ILL, 1.7 z.. ,Ii F„'i''•••rn `i S'!�A � 't i iirc� i t .r.: .- i _ .�1 �. ' Llf. '? J .a', .7m -t” Iri •, _ I „1•. •4c� .e''-:Y.,,t I=. l,: "I .., •, r'.• _,._7 _ M }11'•.•l -' Wt'T li_, 41 :! �r, ��1 'Y'ta ,. rr • • 1 •,�L "rel g .,I:a':c;>3A ,iL., •' -: A',1 ii aiO!'(�•h'11i�= y�ii T, 'E"ill .•J. ' , .' vlti i- 1 fid': I� •,�!4' - , , i I :J:r .1 1t'- Page 3 Regular meeting of the Elk River Municipal Utilities Commission April 14, 2009 4.1 Consider Water Tower Antenna Policy Elk River Municipal Utilities (ERMU) has received requests from communication providers and others to place communication antennas on utility owned property. A uniform policy was reviewed. Jerry Gumphrey moved to approve the Water Tower Antenna Policy as presented. Daryl Thompson seconded the motion. Motion carried 3-0. 4.2 Consider Bids for Jackson Street Water Tower Integrity Testing At the February ERMU Commission meeting, staff was directed to secure bids to determine the structural integrity of the Jackson Street water tower. Staff recommends awarding to the lowest responsive bidder, Short Elliot Hendrickson, Inc, (SEH) for $2,300. Jerry Gumphrey moved to authorize Short Elliot Hendrickson, Inc., to perform a structural integrity test on the Jackson Street water tower. Daryl Thompson seconded the motion. Motion carried 3-0. 4.3 Review 2009 Construction Projects There are many small electrical installation projects scheduled to be completed this spring. Many of these projects will require cable installation by method of underground boring or pushing. ERMU does not have the specialized equipment to do this type of work. Staff is asking Commission approval to secure third party quotes for completion of these projects under $10,000. The Twin Lakes Estates 2"d housing project will be the fust scheduled and materials are already in stock. The County Road 1 Feeder project for the Connexus territory acquisition in 2010 is still in the planning stages, but because of easements, driveways, roadways, landscaping, and wetlands, there will be underground boring required. Staff is asking for approval to move forward with the formal bidding process for the underground boring required for the County Road 1 Feeder project. John Dietz asked if this could be done in house if staff had the proper equipment. Mark Fuchs said staff could do it but the equipment is expensive. Staff was directed to look into the costs of boring equipment and revisit this issue at a later date. Jerry Gumphrey moved to approve third party quotes for boring jobs under $10,000 as long as several quotes were acquired. Daryl Thompson seconded the motion. Motion carried 3-0. r'. =6 •,. I� •vat .S �-t •1. _ .; clri•i:rl r ''.l43 :ir L4�.: syr,.: r.w • • I, .. r : YFr�t:-... 1' i •'I !. r:1�. ��.. �' uh li'•''. r =):hd H1`�r ,-_- "t �'1,�,J JI 1-i i'ry , r' rlli ii... � R1 '�[E '' I •l• � f1. � � r��11. rl., �,,:,4.r .". rFll�~:•I .'rµ,,.��y ,P^rr. � I: '.3 •' >r Ate;r .9 !iv 1. A, ill - r-'_� _, rI�' .. 1r. y� �•� `►' r lift �. _%y.'.I �,rWr.;. � •'f iUi " r ; Y. �._� `qM` _ _ri _ ,..�-.e - z �,nn 1 .. i � .1 9• �;. arl i., P� i lr ., i i � i .1• I s: �• !:1=�l1 !r/ i.h i'1 �/. iiE 11 ilk, }i'ijw )7 ,L': 511 .•d. r r '1 ] ..6 1'i ... LI,. '.-}`i: .S� •l 'i r, 1.. Ry 1 16 1 la v y31 -a _ -r, -Jti ''Irl r •all •�' .yid l_, "1 Yf, rii i1. .n 1A�1 L!�, ii ._ .. :••I •' 1. ",I' a ri i '��4 •,f l'• .. •1: �4• i �Jf V'i i ���i I. �i SL m i Tn w ii iJr1� 1 •�1, a i'I' ,i4Yyl .It ' i _ ,all 'd''r .. it iu - IN '.•1 I' ii n .. �. '' Mrd r... III r • r r IN I� 1 '1' •:al ': i i n , a -���in a 1'• i. _I _��` i i iii ar .�. ...r -' � L.'1. i j.' I. r•. f :}: i � it � I " � I r'. =6 •,. I� •vat .S �-t •1. _ .; clri•i:rl r ''.l43 :ir L4�.: syr,.: r.w • • I, .. r : YFr�t:-... 1' i •'I !. r:1�. ��.. �' uh li'•''. r =):hd H1`�r ,-_- "t �'1,�,J JI 1-i i'ry , r' rlli ii... � R1 '�[E Page 4 Regular meeting of the Elk River Municipal Utilities Commission April 14, 2009 Jerry Gumphrey moved for authorization to start the bidding process for the County Road 1 project. Daryl Thompson seconded the motion. Motion carried 3-0. 4.4 Review and Consider Staff Restructuring Clarification As of April 1, 2009, ERMU has transitioned to a new staff organizational structure. This restructuring created two new positions, Director of Operations and Superintendent of Electric Services. After 60 days a job description questionnaire was to be filled out and reviewed with the assistance of Riley, Dettmann & Kelsey for comparable worth compliance and retroactive salaries. Included in the restructuring was the promotion of two Lead Linepersons: one to a Line Foreperson, and the other to an Inventory Foreperson. There is already is a pay class for Foreperson. Staff is asking clarification on the starting date of the $1 per hour pay increase for the two employees promoted to the Foreperson pay class. Jerry Gumphrey moved to approve the pay increase for the two Foreperson positions retroactive to April 1, 2009 without the 60 day review period. Daryl Thompson seconded the motion. Motion carried 3-0. 4.5 Review Staff Recommendations on Cost Savinas At a previous ERMU Commission meeting, staff was directed to look into budget reduction and cost savings. A listing of proposed budget reductions was reviewed. In the electric department budget the actual cost of the new bucket line truck is approximately $14,000 under budget, and the Vactron, although a safety item, could be repaired to postpone the purchase of a new one. Discussion followed regarding the safety issue involved with repairing the Vactron. Daryl Thompson said safety is very important and consideration should be given to what the costs would be if the machine needs repairs. Jerry Gumphrey asked if it was working ok now, Mark Fuchs responded yes. Staff was directed to get prices for future repairs and reevaluate this at next months ERMU Commission meeting. In total staff has addressed over $270,000 in reductions for the 2009 budget. This could however affect the reliability of power to some areas that are in need of upgrades or rebuilding. John Dietz said he appreciated staff working on this. 5.2 First Quarter Write -Offs The first quarter write-offs were reviewed. Discussion followed regarding the assessments for water, sewer, and trash. Jerry Gumphrey moved to approve the list of first quarter write-offs. Daryl Thompson seconded the motion. Motion carried 3-0. Page 5 Regular meeting of the Elk River Municipal Utilities Commission April 14, 2009 5.3 Consider Rebates to Encourage Automatic Sprinkler Controls David Berg discussed the possibility of requiring automatic sprinkler controls on irrigation systems. The automatic sprinkler control could reduce water use for irrigating lawns by up to 50%. Staff is recommending a "Smart Irrigation Rebate Program" to encourage ERMU water customers to install automated "Smart" sprinkler systems. Discussion followed regarding the possibility of enforcing this for new irrigation systems. John Dietz asked Terry Maurer if the City Council would be receptive to this requirement and Terry Maurer said he thought they would. Lori Johnson recommended water staff meet with the City Attorney to put together an ordinance for City Council approval. 5.4 Review and Consider Changes to Meter Testing Policy The current meter testing policy is in need of revision. Meters do not have to be removed to be tested anymore. Staff recommends revising the current meter testing policy to read; "If a customer requests the testing of his/her electric and or water meter because of high bills, they shall deposit with the utility the sum of $50.00 for this test and it shall be paid prior to testing." Jerry Gumphrey moved to change the wording for the meter testing policy as stated. Daryl Thompson seconded the motion. Motion carried 3-0. 5.5 Review Company Vehicle Take -Home Practice The vehicle take home policy was reviewed. John Dietz distributed information regarding mileage, gas cost for vehicles, and asked of the necessity of taking home some of the vehicles. Discussion followed. Jerry Gumphrey said he didn't have a problem with this practice and didn't know why it was even being discussed. This discussion was tabled until IRS tax rate status to individuals becomes available. 6.1 Discuss Use of City Attorney In the past ERMU has utilized City Attorney Peter Beck and outside attorneys to deal with legal issues. John Dietz said by law ERMU should be using only the City Attorney. John Dietz moved to use City Attorney Peter Beck for all future legal issues. Daryl Thompson seconded the motion. Motion carried 3-0. 6.2 Staff Updates Jerry Gumphrey voiced his concern of future investing in the Big Stone II project. Vance Zehringer responded the progress is looking good and John Dietz will be meeting with them •Tr. i i i �1 ..: " mY iji ill 'i .�, i i 9. � l: � i i • 'L r i - .'ii .}p r. i I tt:,i i ;;y,w _ '� iii-•�pin:: ��. l.•m�l ti i i ?r'ii i.�.r r. •.0 i i .�� _ 1" I. :. J :'.l ,_ � i it ii � •f -� J tom• ,. T �. ...n I i� J Page 6 Regular meeting of the Elk River Municipal Utilities Commission April 14, 2009 tomorrow. John Dietz said it appears as if future territory acquisition would not be possible if we contract with Connexus for wholesale power. John Dietz asked Commissioners to review the draft from Troy Adams regarding the sharing of the Public Works Director with the City of Elk River, so corrections can be made if any, and a final copy can be sent to the City Council for approval. David Berg informed Commission that some communities allow private wells for irrigation purposes. John Dietz confirmed this would affect the aquifer and the wellhead protection program. Discussion followed regarding the ordinance and the importance of implementing the "Smart"Irrigation system. Vance Zehnnger reported on the new rate comparisons. Vance also informed Commission that his term as Interim General Manager is almost over, he appreciated the opportunity, and the staff at ERMU is a good group of people. Commission thanked him for his service. Theresa Slominski demonstrated a new type of reusable green envelope that is being considered to replace the two envelopes we now use for sending out the monthly bills. Troy Adams wanted to thank the police and fire department for giving ERMU their old radios after they implemented the 800 MHz radio system. They are in better shape than the ones staff is currently using. Troy also wanted to thank Vance Zehringer for his services. 6.3 Set Date for Next Meetinz The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be Tuesday, May 12, 2009, at 4:00 p.m. Other Business There was no other business. President John Dietz adjourned the regular meeting of the Elk River Municipal Utilities Commission at 6:40 p.m. Minutes prepared by Judy McSpadden. J' Dietz J ident, ERMU Commission l4" Tina Allard City Clerk