3.1.B ERMU MINUTES 09-15-2010ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
August 10, 2010
Members Present: John Dietz, President; Jerry Gumphrey, Vice Chair;
Daryl Thompson, Trustee
ERMU Staff Present: Troy Adams, Director of Operations; Mark Fuchs, Line Superintendent;
David Berg, Water Superintendent;
Wade Lovelette, Technical Services Superintendent;
Judy McSpadden, Recording Clerk
ERMU Staff Absent: Theresa Slominski, Finance Director/Office Manager
City Staff Present: Lori Johnson, City Administrator
Others Present: Peter Beck, Attorney from Gray Plant Mooty Law Firm
1.1 Call meeting to order August 10, 2010
John Dietz called the August 10, 2010 meeting to order at 3:30 p.m.
2.1 Consider Utilities Agenda
Troy Adams and John Dietz added additional items under business. Daryl Thompson
moved to approve the August 10, 2010 Utilities Agenda. Jerry Gumphrey seconded the motion.
Motion carried 3-0.
3.1 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:
a. July Check Register
b. July 13, 2010 Minutes
c. Financial Reports
Daryl Thompson seconded the motion. Motion carried 3-0.
4.1 Power Supply Options / Resource Planning Update
Troy Adams updated the Commissioners on the recent resource planning study presentation. A
presentation of the results is tentatively scheduled for the September Commission meeting.
The confidentiality agreement between Connexus Energy and ERMU specific to power supply
negotiations has been signed. Connexus Energy has issued an invitation to ERMU to tour Great River
Energy's Coal Creek Station in North Dakota on September 1, 2010.
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Regular meeting of the Elk River Municipal Utilities Commission
August 10, 2010
5.1 Minnesota Municipal Utilities Overview by MMUA (verbal)
Greg Oxley of MMUA gave a presentation on the State of Minnesota's Municipally Owned
Utilities and the importance of future power generation.
5.2 Review and Consider 2011 Budget Schedule
The timeline for the 2011 budget schedule was reviewed along with the Travel and Training
budget figures. No action required at this time.
5.3 Review Security Systems Department Growth
At the July ERMU Commission meeting, staff was directed to look into the financial security of
the Security Systems Department. Lorrie Franz and Theresa Slominski researched the progress for
this project. Prior to 2004, ERMU Security Systems were operating without established dedicated
resources. Since then, after specifically dedicating resources the department has grown into a good
and reliable business.
5.4 Review Commercial Customer Procedure For Early ldentitication of Potential Default
At the July 13, 2010, ERMU Commission meeting, the second quarter write-offs were presented
for review. Out of that review a request was made for management to meet with staff and create a
procedure for early identification of potential default of the commercial' customers. Staff met to
determine an efficient way of identifying the accounts that haven't paid by the due date. The Power
Manager program has an Accounts Receivable report mechanism in place that could be programmed
to provide a customer balance listing that would identify accounts that are past due and have a
designated balance of $500 or more. This list would be reviewed by the Credit and Collections
Specialist who would identify the customers that should be followed up with.
Troy Adams asked the Commission if a deposit should be collected on all commercial accounts.
Consensus of the Commission was to require a deposit on commercial accounts going forward and if
an existing customer becomes delinquent, a deposit would be requested at that time.
5.5 Review and Consider Water Agreement with ISD 728
The City of Elk River's private well by the City shop location near Hales ball field is failing.
The City of Elk River has allowed the schools to use this well for irrigating the ball fields. Staff is
currently working with the City of Elk River and ISD #728 to try and conserve water and save the
school money. Lori Johnson said they are in the preliminary stages of researching the history of the
agreements between the school and the City of Elk River regaling the shared use of the private well.
John Dietz hoped an amicable agreement could be reached and Lori Johnson stated they are trying to
honor the previous agreements and provide a solution to their watering needs.
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Regular meeting of the Elk River Municipal Utilities Commission
August 10, 2010
6.1 Staff Updates
Troy Adams presented a thank you card from Police Chief, Jeff Beahen for ERMU's donation
and participation in National Night Out (Night to Unite). The attendees for the MMUA summer
meeting this year will be Troy Adams and Mark Fuchs. John Cunningham recently did a training
session for staff on the new digital radio system. John Cunningham is checking into the possibility of
utilizing ERMU's existing analog radio system with the City and County digital system. The Sprint
contract has been signed. John Dietz commented he would like to revisit the credit card fee in six
months instead of one year as previously stated.
David Berg said the new City Engineer, Justin Fernrite has been working with GRE regarding
using gray water for their steam plant and burning the sludge from the waste water treatment plant.
David Berg asked Commissioners if an ordinance should be written for the odd/even sprinkling for
Elk River citizens with their own private wells. Consensus was to have it added to the current
ordinance.
Lori Johnson informed the Commissioners how thankful she was that Troy Adams was able to
step in and take over the department head meeting the other day for her.
Mark Fuchs discussed the recent outage caused by a problem with the substation. GRE is
helping troubleshoot to find the cause of the outage. Troy Adams said Grant Orrock and Chris
Sumstad did an incredible job at switching the load to another sub.
Troy Adams commented that on the last wave of shut -offs it was discovered a few customers
turned themselves back on. John Dietz added he received a call from a disgruntled customer
regarding having his power turned off. Discussion followed regarding customers who turn their own
power back on and the risks associated with that. Troy Adams asked if the City Council needed to
adopt an ordinance. Attorney Peter Beck asked if ERMU wanted to ask the City Council to make it a
misdemeanor.
Jerry Gumphrey moved to ask the Elk River City Council to adopt an ordinance on meter
tampering with an imposed fee and making it a misdemeanor. Daryl Thompson seconded the
motion. Motion carried 3-0.
John Dietz asked if there could be a heading in the Current City newsletter for the ERMU pages.
Discussion followed regarding having dedicated pages for ERMU.
6.2 Set Date for Next Meeting
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, September 14, 2010, at 3:30 p.m.
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Regular meeting of the Elk River Municipal Utilities Commission
August 10, 2010
6.3 Adjourn Regular Meeting
Daryl Thompson moved to adjourn the regular meeting of the Elk River Municipal
Utilities Commission meeting at 5:10 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