3.1.B ERMU MINUTES 10-12-2010ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
September 15, 2010
Members Present: John Dietz, President; Jerry Gumphrey, Vice Char;
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
City Staff Present: Lori Johnson, City Administrator; Justin Ferrite, City Engineer
Others Present: Peter Beek, Attorney from Gray Plant Mooty Law Firm
1.1 Call meeting to order September 15, 2010
John Dietz called the September 15, 2010 meeting to order at 3:30 p.m.
5.1 was moved up to accommodate the guest speaker from McGrann Shea Carnival Straughn &
Lamb.
5.1 Overview of Minnesota Municipal Utilities and Territory Acquisition by McGrann Shea
Carnival Straughn & Lamb (verbal)
Kaela Brennan of McGrann Shea Carnival Straughn & Lamb, talked about the assigned territory
law passed in 1974 for municipal ownership and the reasoning behind acquisitioning territory.
Discussion followed regarding the possibility of future territory acquisition and the costs involved.
2.1 Consider Utilities Agenda
Daryl Thompson moved to approve the September 15, 2010 Utilities Agenda. Jerry
Gumphrey seconded the motion. Motion carried 3-0.
3.1 Consider Consent Agenda
John Dietz asked if employees were still turning in reimbursement forms for the tax preparation
issue and staff affirmed.
John Dietz moved to no longer accept tax return reimbursements after October 31, 2010. Daryl
Thompson seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
September 15, 2010
John Dietz questioned the checks written for advertising in the check register. Discussion followed
and staff was directed to come back with a total yearly cost for security business advertising.
Discussion followed regarding the electric and water financials.
Jerry Gumphrey moved to approve the Consent Agenda as follows:
a. August Check Register
b. August 10, 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 Phase 1 of the resource planning study which
includes Central Minnesota Municipal Power Agency (CMMPA) as a participant. Phase 2 of the
Resource Planning Coalition analysis is scheduled to begin September 16th and finish in mid April
2011. This second phase covers the Request for Proposal (RFP) and the evaluations of the RFP
submittals. The Phase 2 cost allocation amount for Elk River Municipal Utilities (ERMU) would be
$19,444.44.
Jerry Gumphrey moved to authorize entering into Phase 2 of the Resource Planning Coalition
Participation Agreement for $19,444.44. Daryl Thompson seconded the motion. Motion
carried 3-0.
4.2 Proposed Revision to Water Use Restrictions Ordinance 78-51
At the August 10, 2010 ERMU Commission meeting, direction had been given to draft a
revision of Ordinance 78-51 that would give the Utilities Commission authorization to restrict water in
cases of emergency to properties within the City of Elk River whether they were served by ERMU or
not. Attorney Peter Beck reviewed the language added to the existing ordinance. Discussion
followed regarding the timeline of the enforcement of the water restrictions.
Jerry Gumphrey moved to present the revised Ordinance 78-51 to the City Council for
adoption. Daryl Thompson seconded the motion. Motion carried 3-0.
At this time it was asked if Roger Renner could address the Commission regarding the Water Use
Restriction Ordinance.
Roger Renner voiced his concern regarding the Water Use Restriction Ordinance.
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Regular meeting of the Elk River Municipal Utilities Commission
September 15, 2010
5.2 Review 2011 Capital Projects & Equipment Budget
The 2011 projected capital projects and equipment budget were reviewed.
5.3 Review and Consider Safety Management Program
ERMU contracts with Minnesota Municipal Utilities Association (MMUA) to provide safety
training through their Safety Management Program and Job Training and Safety (JTS) Program. Troy
Adams informed the Commission that this is a good program and staff recommends approving the
renewal of the MMUA Safety Management Program and JTS program for the 2010-2011 contract
period.
Jerry Gumphrey moved to approve the 2010-2011 contract with MMUA for the Safety
Management and JTS Program for $22,675. Daryl Thompson seconded the motion. Motion
carried 3-0.
5.4 Review and Consider Cable Installation Bids for 5`" Street Rebuild
On September 2"6, bids were opened for contracted cable installation on the 5s' Street rebuild
project. Staff recommends awarding to Michels Pipeline, the lowest responsive bidder.
Jerry Gumphrey moved to award the cable installation contract for the 5"' Street rebuild
project to Michels Pipeline, the lowest responsive bidder. Daryl Thompson seconded the
motion. Motion carried 3-0.
5.5 Review and Consider Meter Reading
In 1988, Patrick McBrady entered into a meter reading agreement with ERMU that
automatically renewed annually. Patrick McBrady informed staff that September would be his last
month reading meters for ERMU. Discussion followed regarding the options available to meet
ERMU's meter reading needs. Staff recommends hiring a part time meter reader and a seasonal
employee to facilitate taking meter reading in house, and purchase the mobile collector.
Jerry Gumphrey moved to make an exception to the job posting policy due to time constraint
and approve the stats recommendation for hiring a part time meter reader, seasonal employee,
and purchase the mobile collector. Daryl Thompson seconded the motion. Motion carried 3-0.
5.6 Review and Consider Meter Tampering Ordinance
Over the past few years, there has been an increase in instances where electric meters have been
tampered with without authorization by ERMU. Discussion followed regarding the instances when
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Regular meeting of the Elk River Municipal Utilities Commission
September 15, 2010
this has happened and the amount of the fine. Consensus of the Commission was to raise the civil
penalty amount to $250 instead of the proposed $50.
Daryl Thompson moved to approve the proposed meter tampering ordinance for City Council
review and consideration. Jerry Gumphrey seconded the motion. Motion carried 3-0.
5.7 The Minnesota Municipal Utilities Association 2010 System Innovation Award
ERMU has won the System Innovation Award from MMUA. The award was presented to
ERMU "in recognition for its leadership and innovation in customer service, energy efficiency,
renewable energy or technology use, which has improved service to its community and enhanced
public power's prestige." This award really comes to ERMU because of our excellent electrical
system reliability and our progressive resource conservation programs. Vance Zehringer and his
contribution to ERMU, Energy City, and our community was a significant factor in our achievements
that led to receiving this award.
6.1 Staff Updates
Troy Adams talked about his recent trip to North Dakota to tour Great River Energy's Coal
Creek Station, DC Convertor Station, and the Falkirk Mine with representatives of GRE and
Connexus.
John Dietz voiced his concerns to Theresa Slominski regarding the customer dissatisfaction on
the credit card fees. Discussion followed regarding the transaction fees and the cost to ERMU if the
fees were absorbed. John Dietz directed Theresa Slominski to look into the fees and bring back to
Commission for further discussion. A major outage occurred on Sunday, September 12th, caused by a
squirrel. The call center was flooded with calls and a lot of customers were lost in the phone system.
Theresa Slominski informed the Commission that she is looking into an automated software system
and other alternatives but does not have all the information needed at this time and will bring back for
discussion at a future meeting.
David Berg talked about working one on one with the top 20 water users to help lower their
water usage.
Lori Johnson introduced Justin Femnte, the new City Engineer. Justin Femnte has been
assisting David Berg with the well projects.
6.2 Set Date for Next Meeting
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, October 12, 2010 at 3:30 p.m.
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Regular meeting of the Elk River Municipal Utilities Commission
September 15, 2010
6.3 Adjourn Regular Meeting
Jerry Gumphrey moved to adjourn the regular meeting of the Elk River Municipal
Utilities Commission meeting at 6:15 p.m. Daryl Thompson seconded the motion. Motion
carried 3-0.
Minutes prepared by Judy McSpadden.
John Dietz
President, ERMU Commission
Tina Allard
City Clerk