Loading...
3.2 ERMU MINUTES 01-12-2010ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION HELD AT UTILITIES CONFERENCE ROOM December 15, 2009 Members Present: John Dietz, President; Jerry Gumphrey, Vice Chair; Daryl Thompson, Trustee ERMU 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 City Staff Present: Lori Johnson, City Administrator; Terry Maurer, City Public Works Director Others Present: Mark Mathison, Attorney from Gray Plant Mooty Law Firm 1. Call meeting to order December 15.2009 John Dietz called the December 15, 2009 meeting to order at 4:00 p.m. 2. Consider Utilities Agenda Daryl Thompson moved to approve the December 15, 2009 Utilities Agenda. Jerry Gumphrey seconded the motion. Motion carried 3-0. 3. Consider Consent Agenda John Dietz had questions on the check register and financials, staff responded. Jerry Gumphrey moved to approve the Consent Agenda as follows: 3.1 November Check Register 3.2 November 17, 2009, Regular Meeting Minutes 3.3 Financial Reports Daryl Thompson seconded the motion. Motion carried 3-0. 4.1 Review and Consider 2010 Budget, Rate, and Fee Changes Troy Adams reviewed the electric and water budget for 2010. ERMU's purchased power rate via Great River Energy has been finalized with no changes from the preliminary numbers used by staff during the electric rate design process. The proposed budget reflects the new 80/20 Electric/Water split for the applicable accounts and resulted in a slight rate increase to absorb additional expenses. The revised electric rates recommended were a minor increase for winter energy (kWh) charge for Page 2 Regular meeting of the Elk River Municipal Utilities Commission December 15, 2009 residential and non -demand small commercial, as well as a minor increase in energy (kWh) charge for demand commercial accounts. For typical customer loads it is an approximate 5.9% residential rate increase, 5.7% non -demand customer rate increase, and 4.7% demand customer rate increase. Terry Maurer informed commission that the change of the 75/25 to 80/20 split for applicable accounts has helped the bottom line for the water department. As for water rates, a water rate study will be performed and brought back to the commission for recommendation. Jerry Gumphrey moved to approve the 2010, Budget, Rate, and Fee Changes as presented. Daryl Thompson seconded the motion. Motion carried 3-0. 4.2 Review and Consider Electric On -Call Cell Phone At the November 17, 2009, Elk River Municipal Utilities Commission meeting, after hours reconnects were discussed. During that discussion the topic of the on-call cell phone came up. The cell phone used for the on-call is passed from employee to employee as the on-call weekly rotation occurs. This cell phone number has been provided to Great River Energy, Sherburne County Dispatch, Elk River Police, Elk River Fire, and others. During the discussion pertaining to the after - hour reconnects it was noted that customers have been calling the on-call phone directly. The commission felt the on-call electric employee should not be getting these calls. The commission directed staff to change the on-call phone number. After discussion with staff, it was noted that the disconnect forms have the on-call number on them. Staff believes Us is the reason for the direct calls. Due to this, changing the on-call number has been delayed pending commission review. The forms have been revised to reflect policy change eliminating after-hours reconnects as well as removing the on-call phone number. Staff recommends the commission allow the current on-call phone number to remain the same. Consensus was to not change the on-call cell phone number at this time. 5.1 Review Boot Purchase Procedure At the November Elk River Municipal Utilities Commission meeting, during the review of the check register, there were questions about boot purchases. The Cormnission directed staff to bring back, for finther review, a history of past boot purchases. A four year history of boot purchases was reviewed. Boots are included with the personal protective equipment (PPE) provided to outside employees. This is addressed in the employee handbook under the Clothing Policy. This policy allows for climbing boots, summer work boots, rubber boots, rubber overshoes, and insulated winter boots. Approval for new boot purchases has been at management discretion. Commissioners thanked staff for the information. No action taken. Page 3 Regular meeting of the Elk River Municipal Utilities Commission December 15, 2009 5.2 Review and Consider Water Department On -Call The current water department on-call policy pays an employee eight additional hours (overtime rate) each week for carrying the on-call phone. If the employee is called after hours and needs to respond, they receive a minimum of two additional hours or whatever the respondent requires for time. The on-call pay for the water department amounts to approximately $18,000 per year. In recent years there have been very few call -outs not related to the SCADA system or shut -offs. ERMU no longer responds to non -emergency call -outs for shut -offs. A laptop computer has been budgeted for 2010 which will allow for responses to the SCADA alarms remotely. Well over 50% of the 2009 call -outs will be eliminated by the purchase of a laptop computer. It will no longer be cost effective to continue the on-call procedure for the water department. If a call -out is necessary and management is unavailable, a water department employee will be dispatched and compensated the minimum two hour call -out pay or whatever the respondent requires for time. Staff recommends discontinuing the water department on-call policy when the laptop computer is fully functional. Jerry Gumphrey moved to eliminate the water department on-call policy as of the closest pay period on or around March 1, 2010. Daryl Thompson seconded the motion. Motion carried 3-0. 5.3 Review Industry Rate and Finance Challenges At the October 13, 2009, ERMU Commission meeting, staff was directed to comment on an article published in the September 2009 Public Power magazine. Troy Adams asked the commission if they had any special topics they wanted to discuss. The Commission commended Troy for the interest he showed regarding all the topics of this article and if he has an area of interest he should bring this back to the Commission for discussion at any time. 5.4 Review and Consider Street Lighting Fee (Verbal At a previous ERMU Commission meeting John Dietz asked staff to look into the possibility of having neighborhoods pay for their own street lighting instead of the City of Elk River. Troy Adams stated that ERMU boundaries go beyond the City limits. John Dietz asked what the street lighting cost was each month. Troy Adams stated approximately $20,000 is donated each month; the City of Elk River is not actually incurring this cost. In order for fees to be collected, ERMU would have to somehow create a way for it to pass through to the City of Elk River. The disproportion of rate payers to City tax base payers complicates that. Lori Johnson stated some cities do not have a local power company to aid in the street lighting fees and have to actually pay a vendor to maintain. The City of Elk River is in a much better situation and didn't think anything needed to be done at this time. Page 4 Regular meeting of the Elk River Municipal Utilities Commission December 15, 2009 5.5 Review and Consider Clothing Policv Revision ERMU provides personal protective equipment (PPE) for employees. This includes, but is not limited to: FR Clothing, boots, safety glasses, safety vests, hard hats, rubber gloves, and leather gloves. These are items required for safe implementation of the employees' job duties. These items are the property of ERMU and not employee compensation. The PPE clothing for the employees has the ERMU logo on it and is not for personal use. There is not specific language in the Clothing Policy to require employees to tum in their PPE items when leaving employment with ERMU. Staff recommends adding the following to the Clothing Policy in the ERMU Handbook. Upon the end of employment with the Utilities, an employee must return all Utilities clothing items that were issued to him or her that were paid for by the Utilities with the exception of boots. Daryl Thompson moved to approve the revised Clothing Policy as presented. Jerry Gumphrey seconded the motion. Motion carried 3-0. 6.1 Staff Updates Troy Adams said the result of the state gas bids were not still not available. Lori Johnson commented they should be available by the end of the week. John Dietz asked Troy Adams for more information regarding a commercial electric meter. Troy Adams reviewed the issue with the demand meter. The old demand meters will be replaced with the newer radio read meters but they are very expensive so this will be phased in over time. Wade Lovelette said the meters are budgeted for and an area will be changed out so meter reading can be done more efficiently. Troy Adams also stated that a new computer program has been implemented to recognize repetitive demands. Theresa Slominski relayed information that has been received regarding the new eco -envelopes. Terry Maurer briefed the Commission on a topic that was discussed at the November 17, 2009, ERMU Commission meeting regarding a water assessment for a contractor that repaired a service line to a house, billed the property owner, and has not received payment. The ERMU Commission approved the assessment providing the homeowner sign a waiver. Terry Maurer reported this had been done and the property will be assessed. The contractor has asked when he would receive funds for this work. Consensus was ERMU would forward the funds to the contractor when funds are received. Mark Mathison reviewed the Water Tower Antenna Lease agreement changes. Jerry Gumphrey moved to approve the amended Water Tower Antenna Lease. Daryl Thompson seconded the motion. Motion carried 3-0. David Berg displayed three water meter radio read devices. John Dietz commented they all looked the same. David Berg said staff will be marking them to ensure they are properly installed on the right size meters. Page 5 Regular meeting of the Elk River Municipal Utilities Commission December 15, 2009 Mark Mathison gave an update of the status of the Waterfront East properties. Discussion followed. Jerry Gumphrey moved to have Gray Plant Mooty draft an agreement to Rock Solid regarding the Waterfront East property and attach document for permanent record to the December 15, 2009 ERMU commission meeting minutes. Daryl Thompson seconded the motion. Motion carried 3-0. Mark Mathison informed the commission that he has met with management regarding union organizing and activity in the workplace. Discussion followed. 6.2 Set Date for Next Meetine The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be Tuesday, January 12, 2010, at 4:00 p.m. 6.3 Adiourn Reaular MeetinE President John Dietz adjourned the regular meeting of the Elk River Municipal Utilities Commission at 5:50 p.m. Minutes prepared by Judy McSpadden. Tina Allard City Clerk