3.1.B ERMU MINUTES 08-10-2010ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
July 13, 2010
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
Others Present: Peter Beck, Attorney from Gray Plant Mooty Law Firm;
Dave Traut, Traut Wells
1.1 Call meeting to order July 13.2010
John Dietz called the July 13, 2010 meeting to order at 3:30 p.m.
2.1 Consider Utilities Agenda
Daryl Thompson moved to approve the July 13, 2010 Utilities Agenda. Jerry Gumphrey
seconded the motion. Motion carried 3-0.
3.1 Consider Consent Agenda
Commissioners had questions on the check register and financials, staff responded.
Jerry Gumphrey moved to approve the Consent Agenda as follows:
a. June Check Register
b. June 8, 2010 Minutes
c. Financial Reports
Daryl Thompson seconded the motion. Motion carried 3-0.
4.1 Power Supply Options / Resource Planning Update
In September 2008, Connexus Energy gave the required 10 year notice to terminate the "all
requirements" power contract with ERMU. In April 2010, the ERMU Commissioners authorized
entering into "Phase 1" of a resource planning study with a coalition which includes Central
Minnesota Municipal Power Agency (CMMPA) as a participant. The Resource Planning Coalition
held a conference call on June 21, 2010, and finalized the Resource Planning Coalition Confidentiality
Page 2
Regular meeting of the Elk River Municipal Utilities Commission
July 13, 2010
Agreement and Participation Agreement. A conference call is scheduled for July 9s', and a meeting
will take place in Blue Earth, Minnesota to review results from Phase 1 of the resource planning study.
The Coalition approved a press release announcing the participants and the resource planning efforts.
After the press release, Connexus Energy contacted Troy Adams to talk about ERMU's plans for
territory acquisition and power supply. Connexus Energy is asking ERMU to sign a confidentiality
agreement. Discussion followed regarding the wording of the agreement. A few minor changes were
recommended by Attorney Peter Beck.
Jerry Gumphrey moved for authorization to sign the confidentiality agreement with the
recommended changes. Daryl Thompson seconded the motion. Motion carried 3-0.
4.2 Well Drilling Ordinance Update
The League of Minnesota Cities (LMC) supports utilities on seeking legislation that would
require local approval for new private irrigation wells. There will be a meeting in the near future with
an official from Minnesota Rural Water Association and other LMC officials to speak with interested
utilities about potential policies for new well drilling. Discussion followed.
4.3 Review and Consider Tower Attachment Lease Agreement
The Tower Attachment Lease Agreement drafted for Sprint has a starting base rent of $23,000
per year per tower with a 5% annual escalation. Sprint has asked that the annual escalation be
changed to 41/o instead of 5%. Discussion followed.
Jerry Gumphrey moved to approve the change in the Tower Attachment Lease Agreement to
4% annual escalation instead of the 5%. Daryl Thompson seconded the motion.
Motion carried 3-0.
5.1 Review and Consider Deposits & Related Services Policies Revision
A few months ago the commission approved a change to ERMU's deposit policy. The change
was to hold the deposit until service is terminated rather than return it to the customer after three years
of satisfactory payment history. The Deposits and Related Services Policies have been updated and
reviewed by Attorney Peter Beck. Staff recommends approval of this policy.
Jerry Gumphrey moved to approve the Deposits and Related Services Policies as presented.
Daryl Thompson seconded the motion. Motion carried 3-0.
Page 3
Regular meeting of the Elk River Municipal Utilities Commission
July 13, 2010
5.2 Review and Consider Territory Boundary Aereements
In 2008 the Minnesota Public Utilities Commission (MPUC) began a project to verify
Minnesota's electric utility service area boundary maps. ERMU submitted the requested information
in April 2008. Many utilities believing to be in agreement with their neighboring utilities submitted
different boundaries. MPUC instructed many of the larger utilities to submit signed agreements
between their neighboring utilities to clarify the territory boundary maps. After several meetings,
ERMU's boundaries with Connexus Energy and Xcel Energy have been formalized. Staff will be
meeting with Wright Hennepin Cooperative in the future to formalize the boundaries with them.
Daryl Thompson moved to authorize the execution of the boundary agreements with Xcel
Energy and Connexus Energy. Jerry Gumphrey seconded the motion. Motion carried 3-0.
5.3 Review and Consider 2°d Quarter Write -Offs
The seconded quarter write-offs totaling $51,312.33 were presented for review. Included in the
write-offs was a commercial account for over $27,700. Discussion followed regarding commercial
and industrial accounts. It was questioned if these accounts could be flagged if a payment was missed
and if ERMU could request a personal guarantee to be signed. Commission directed staff to look into
options to prevent fixture losses from commercial and industrial accounts. There were $44,248.54 in
accounts sent to a collection agency, $468.31 that will be written off with no further collection efforts,
and $6595.48 that will be assessed this fall.
Daryl Thompson moved to approve the 2nd quarter write-offs as presented. Jerry Gumphrey
seconded the motion. Motion carried 3-0.
5.4 Review and Consider Water Main Repair Bids
Last year, when Burlington Northern Railroad was installing a new crossing on Jackson
Avenue, they cracked the 100 year old water main that was under the railroad tracks. Burlington
Northern said they would waive the cost for flagmen and permits for this project. There were two
companies that quoted this project. Staff recommends awarding to Dirt Pro, formerly Kober
Excavating, the lowest responsive bidder.
Daryl Thompson moved to award Dirt Pro, formerly Kober Excavating, the lowest responsive
bidder, for the Jackson Street water main repair project. Jerry Gumpl rey seconded the
motion. Motion carried 3-0.
Page 4
Regular meeting of the Elk River Municipal Utilities Commission
July 13, 2010
6.1 Staff Updates
Troy Adams discussed the recent work with the EDA and Energy City in the effort to
communicate education tools to assist with their economic development and energy conservation
goals. Troy also informed commission about the recent talks with United Health Group (UHG)
regarding rates, power supply, and future expansion. Discussion followed regarding UHG running
their own generators.
Theresa Slominski updated the commissioners on how the credit cards process was working out.
John Dietz asked for an activity report on the credit card payments. Theresa explained the new
automated phone process that has been implemented.
John Dietz asked David Berg how the new SCADA system was working out. David responded
it was working fine and staff has been trained. David brought up the gray water irrigation for future
use versus drilling another well. Commission directed David to look into the possibility. David Berg
asked for Commission approval to run for Sherburne County Soil and Water Conservation District
Supervisor (SCSWD). Discussion followed regarding the area this covers. It was determined that
being this would not be involved with the Elk River area it should be ok. Attorney Peter Beck was
going to check to make sure.
Mark Fuchs talked about the two crews recently sent for mutual aid to Rochester and Wadena.
6.2 Set Date for Next Meeting
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, August 10, 2010, at 3:30 p.m.
6.3 Adiourn Regular Meeting
Daryl Thompson moved to adjourn the regular meeting of the Elk River Municipal
Utilities Commission meeting at 4:55 p.m. Jerry Gumphrey seconded the motion. Motion
carried 3-0.
Minutes prepared by Judy McSpadden.
John Dietz
President, ERMU Commission
Tina Allard
City Clerk