3.2 ERMU MINUTES 08-11-2009ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
July 14, 2009
Members Present: John Dietz, President; Jerry Gumphrey, Vice Chair;
Daryl Thompson, Trustee
Staff Present: Troy Adams, Director of Operations;
Theresa Slominski, Finance Director/Office Manager,
Mark Fuchs, Line Superintendent; David Berg, Water Superintendent;
Wade Lovelette, Technical Services Superintendent;
Judy McSpadden, Recording Clerk; Richard Wagner
Others present: Terry Maurer, City Public Works Director;
Peter K. Beck, Attorney from Gray Plant Mooty Law Firm
1. Call meeting to order July 14, 2009
John Dietz called the July 14, 2009 meeting to order at 4:00 p.m.
2. Consider utilities Agenda
Jerry Gumphrey moved to approve the July 14, 2009 Utilities Agenda. Daryl
Thompson seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
Staff answered questions from the Commissioners.
Jerry Gumphrey moved to approve the Consent Agenda as follows:
June Check Register
June 9, 2009, Regular Meeting Minutes
July 8, 2009, Special Meeting Minutes
Financial Reports
Daryl Thompson seconded the motion. Motion carried 3-0.
4.1 Review and Consider On -Call Policy (Take Home Vehicle Practice Follow -UP)
At the June 9, 2009, Elk River Municipal Utilities (ERMU) Commission meeting, staff
was directed to forward the revised ERMU On -Call policy to Mark Mathison of Gray Plant
Mooty. The proposed expanded and revised version of the ERMU Handbook on-call policy
was reviewed. Staff was directed to supply the complete employee handbook to Mark
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Regular meeting of the Elk River Municipal Utilities Commission
July 14, 2009
Mathison of Gray Plant Mooty for him to review and make proposed changes if necessary for
Commission approval.
Jerry Gumpbrey moved to approve the revised On -Call Policy. Daryl Thompson
seconded the motion. Motion carried 3-0.
4.2 Review and Consider Electric Capital Proiects (Follow -Up)
The 2009 Electric Capital Projects were reviewed. Staff asked for approval to secure
pricing for material needed for the remaining electric projects budgeted for 2009.
Jerry Gumphrey moved to approve the acquisition of needed materials for the
remaining budgeted electric projects for 2009. Daryl Thompson seconded the motion.
Motion carried 3-0.
4.3 Review and Consider Water Use Restriction
Section 78-51 of the City Code currently authorizes the Board to impose water use
restrictions by resolution. Attorney, Peter K. Beck, reviewed the formal resolution adopting
water use restrictions.
Jerry Gumphrey moved to approve the Resolution Imposing Water Use Restrictions
within the City of Elk River. Daryl Thompson seconded the motion.
Motion carried 3-0.
5.1 Review and Consider Cable Replacement Bids for Simonet Drive
On July 7, 2009, bids were opened for contracted work on the Simonet Drive cable
replacement project. Staff recommends awarding the bid to Michels Pipeline Corporation, the
lowest responsive bidder.
Jerry Gumphrey moved to award the Simonet Drive cable replacement project to
Michels Pipeline Corporation, the lowest responsive bidder. Daryl Thompson seconded
the motion. Motion carried 3-0.
5.2 Review and Consider Cable Replacement Bids for Xenia & Tipton Avenue
On July 7, 2009, bids were opened for contracted work on the Xenia and Tipton Avenue
cable replacement project. Staff recommends awarding the bid to Michels Pipeline
Corporation, the lowest responsive bidder.
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Regular meeting of the Elk River Municipal Utilities Commission
July 14, 2009
Jerry Gumphrey moved to award the Xenia and Tipton Avenue cable replacement
project to Michels Pipeline Corporation, the lowest responsive bidder. Daryl Thompson
seconded the motion. Motion carried 3-0.
5.3 Review and Consider Second Quarter Write -Offs
A list of write-offs was reviewed. Discussion followed regarding the assessment
possibility and the collection agency. Staff recommends approval of the second quarter write-
offs totaling $15,865.41.
Daryl Thompson moved to approve the write-off listing for the second quarter of 2009
as presented. Jerry Gumphrey seconded the motion. Motion carried 3-0.
6.1 Staff Updates
Troy Adams informed Commission that the electric and water usage year to date, is up
from last year. Troy Adams distributed an Interconnection agreement with Connexus and
ERMU for the Waco Substation. Connexus is proposing to utilize one circuit of the Waco
Substation for back-up. John Dietz questioned the financial compensation. Troy Adams
responded they would pay a minimal fee monthly. If and when they needed to utilize the
Waco Substation they would be billed according to the specifications in the agreement.
Jerry Gumphrey moved to approve the Distribution Interconnection Agreement By and
Among Elk River Municipal Utilities and Connexus Energy for the Waco Substation.
Daryl Thompson seconded the motion. Motion carried 3-0.
Troy Adams informed the Commission about a bad debt that is still being worked on.
Attorney, Peter K. Beck has been looking into the possibility of collecting funds. Discussion
followed.
Theresa Slominski informed the Commission that the bill format for the new eco
envelopes is still being worked on. There were 88 shut -offs recently. John asked if most of
them were residential or commercial. Theresa responded that a majority of them were
residential.
David Berg asked if the Commission would consider raising the tuition reimbursement
Rind per employee. John Dietz directed staff to bring it to next months meeting as an agenda
item. Bids are being acquired for the tear down of the old building by the Jackson Street water
tower. David Berg said Bob Pearson, IT Technician for the City of Elk River, has inquired if
ERMU has a policy or agreement for antennas on water towers he could promote, because he
knows of another community that has received a substantial profit from this. With the recent
road repair on the railroad crossing on Jackson Avenue, the water main cracked. Staff is
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Regular meeting of the Elk River Municipal Utilities Commission
July 14, 2009
waiting for the railroad to respond regarding repair of this water main. David requested
approval to buy and install two SMART systems for the irrigation systems at Well #7 and the
Power Plant on Main Street.
Daryl Thompson moved to approve purchase and installation of two SMART systems
for the irrigation system at the Power Plant and Well #7 for $1260. Jerry Gumphrey
seconded the motion. Motion carried 3-0.
Terry Maurer notified the commissioners that the City of Elk River is requesting bids for
the Norfolk, Morton Street improvement project. If this project moves forward there will be
approximately $20,000 of water improvements needed.
Mark Fuchs said the County Road 1 project was more than expected due to the need for
additional boring.
John Dietz invited each Commissioner to clarify their position and meaning regarding the
recent Special Meeting on the Big Stone IT plant and the comments made regarding selling
ERMU. Jerry Gumphrey reiterated his position as being in the best interest of rate payers.
Daryl Thompson concurred with Jerry Gumphrey stating the comment was meant for down
the road when renegotiating contracts and that he has no interest of putting ERMU on the
market at this time. John Dietz agrees with Jerry and Daryl that nothing will happen until the
current contract has expired. Selling would only be a matter of last resort if ERMU could not
find a favorable contract for its rate payers. The Commission wants to do what is best for the
employees and the rate payers. It is not the intent to sell ERMU.
Jerry Gumphrey asked if the recent gas main that was hit was us. Mark Fuchs confirmed
it was ERMU but that the gas line not located properly, the locate was off. Jerry Gumphrey
said there have been a lot of changes this past year and asked the department heads how things
were going. Theresa Slominski stated it has not been without trials but feels it has made them
stronger and it is a good team. Jerry Gumphrey reminded them they are there for them.
Consensus from the Commission was they are doing a great job.
6.2 Set Date for Next Meetine
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission
will be Tuesday, August 11, 2009, at 4:00 p.m.
President John Dietz adjourned the regular meeting of the Elk River Municipal Utilities
Commission at 5:00 p.m.
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Regular meeting of the Elk River Municipal Utilities Commission
July 14, 2009
Minutes prepared by Judy McSpadden.
John Dietz
President, ERMU Commission
Tina Allard
City Clerk