3.0 ERMU MINUTES 05-10-2005ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
April 12, 2005
Members Present: Jerry Takle, President; John Dietz, Vice Chair; James Tralle, Trustee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
David Berg, Water Superintendent; Theresa Slominski, Office Manager
Other Employees Present Wade Lovelette, Mark Fuchs, Trevor Gwiazdon
Others Present: Steve McDonald, Abdo, Eick & Meyers, LLP
1. Call meeting to order April 12, 2005
President Jerry Takle called the April 12, 2005, meeting to order at 3:30 p.m.
2. Consider Utilities Agenda
Bryan Adams adds an item to be discussed under Staff Updates.
John Dietz moved to approve the April 12, 2005, Utilities Agenda. James Tralle seconded the
motion. Motion carried 3-0.
3. Consider Consent Agenda
John Dietz questioned the depreciation amount on the water income statement along with the
Administration and General Expenses. Staff responded the depreciation amount was because of
the transferring of water mains in the newer developments from developer to utilities. The
Administration and General Expense accounting explanation will be forwarded to
Commissioners.
James Tralle moved to approve the Consent Agenda as follows:
March Check Register
March 8, 2005, Minutes
Financials
John Dietz seconded the motion. Motion carried 3-0.
5.1 Staff Up -dates
Bryan Adams informed the Commissioners of the School Districts request to use an existing
well on site for the East Elk River Elementary School. Discussion followed regarding the
policies. It was recommended to the City that the Well be sealed, thereby, followi%utility policy
along with not jeopardizing the Utilities future well. The City opened bids for the 5 Street Water
main project and are recommending the lowest responsive total bidder, Universal be awarded the
job. The water portion of the street improvement project would be $137,925.
Motion by James Tralle to accept the bid from Universal for $137,925. John Dietz seconded the
motion. Motion carried 3-0.
Page 2
Regular meeting of the Elk River Municipal Utilities Commission
April 12, 2005
Glenn Sundeen reported on the voltage flicker problems occurring at West Bank #2 Substation.
Testing is being done to discover the problem. He also updated the Commissioners on the current
projects and tree trimming.
David Berg relayed there were 13 security systems sold in March. The SCADA system is up and
running and has been responding with good information on the Wells. Well #2 is back on line and
staff is in the process of completing the annual maintenance on the filter plants.
Theresa Slominski reported on the staff duty changes that have been implemented to improve
internal controls and efficiencies.
6.1 Review and Consider Employee Wage Request
Bryan Adams briefed the Commissioners on the current benefits compared to surrounding
utilities and the requested benefit and salary increases by employees. Discussion followed
regarding the requested rest period for employees working in the middle of the night and the
amount of times this has happened in the past year. John Dietz asks that staff keep record of this
for future reference. John Dietz relayed to the employees present that they would be revisiting the
insurance program this fall for the year 2006. There might be the possibility of a change if the
rates keep going up. Bryan Adams shared with the Commissioners the positive attitude of the
staff and the willingness to step in and help out when needed. James Tralle voiced his
appreciation on the cooperation of all the employees. Jerry Takle added it is a job well done.
Motion by James Tralle to approve the 2.57% salary increase, include the requested rest period
amendment, along with the provision that the Health and Dental Insurance issue be revisited this
fall utilizing an employee committee to make recommendations to the Utilities Commission. John
Dietz seconded the motion. Motion carried 3-0.
6.2 Review Sick Leave Policy
The current sick leave policy was discussed. By past practice, sick leave has only been
granted if employee, spouse or child is sick. An issue recently arose concerning the proper use of
sick leave and if sick leave can be used if employees'parents are ill. The definition of what is a
dependent was brought up. Steve McDonald will look into the IRS definition of dependent and
forward it on to staff. This issue will be discussed further at a later date. No action taken.
6.3 Review and Consider 2004 Audit
Steve McDonald of Abdo, Eick & Meyers, LLP reviewed the 2004 audit. Overall, the audit
went well. The collateral coverage at one bank was an issue again this past year. John Dietz
requested staff to monitor collateral coverage closely so it does not happen again. The appropriate
levels of cash balances were discussed, and the auditors suggest the Utilities continue to monitor
them closely considering financial demands required to support system growth.
Rates were also discussed and it appears they are consistent and fair.
Page 3
Regular meeting of the Elk River Municipal Utilities Commission
April 12, 2005
Motion by James Tralle to accept and file 2004 Elk River Municipal Utilities audit, John Dietz
seconded the motion. Motion carried 3-0.
Other Business
There was no other business.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, May 10, 2005.
President Jerry Takle adjourned the regular meeting of the Elk River Municipal Utilities
Commission at 4:45 p.m.
Resp tfully submi
Judy Me -Spa
Recording Clerk
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