3.0 ERMU MINUTES 06-14-2005ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
May 10, 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
1. Call meeting to order May 10, 2005
President Jerry Takle called the May 10, 2005, meeting to order at 4:00 p.m.
2. Consider Utilities Agenda
James Tralle moved to approve the May 10, 2005, Utilities Agenda. John Dietz seconded
the motion. Motion carried 3-0.
Consider Consent Agenda
John Dietz had some questions regarding the financials, staff responded. Staff handed out
an electronic transfer report that will be included with the check register in the future. The
March 2005 payment of 2004 payroll tax and sales tax was discussed at length.
John Dietz moved to approve the Consent Agenda as follows:
April Check Register
April 12, 2005, Minutes
Financials
James Tralle seconded the motion. Motion carried 3-0.
5.1 Staff Up -dates
Bryan Adams informed the Commissioners of the absence of an employee for health
reasons and the resignation of a water operator. Staff will start the process to hire a water
operator. Bryan Adams also discussed upcoming developments and rebuilds. John Dietz
explained the possible urban service district expansion east of County Road 40.
Glenn Sundeen reported on the current projects and the Connexus acquisition that will
take place next week.
David Berg updated the Commissioners on the Hillside water tower project and the
hydrant work being done for the Walmart expansion. There were seven Security sales for
the month of April.
Theresa Slominski discussed the write-offs, electronic transfers, and the availability of
direct deposit for payroll.
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Regular meeting of the Elk River Municipal Utilities Commission
May 10, 2005
5.2 Review and Consider Rest Period Policy
At the April 12, 2005 Elk River Municipal Utilities Commission meeting the operational
employees asked for and received a rest period provision which should be formally
adopted. Staff would like to add the underlined sentence to the policy.
"Elk River Municipal Utilities will allow one hour rest time without payroll deduction for
each hour overtime worked from midnight to start of scheduled shift, excluding Saturday
and Sunday, when released. This rest time shall be taken during the next scheduled work
shift. When employees are not released for rest time, all hours worked on normal shift
shall be at time and one half. It is the employee's responsibility to notify the supervisor
prior to taking the rest period and to take the rest period."
Motion by John Dietz to adopt the above rest period policy with the added sentence.
James Tralle seconded the motion. Motion carried 3-0.
Also discussed was the 10 mile radius living distance requirement. A couple of
employees have asked if the 10 mile radius requirement could be widened. Commission
felt this was an issue that should be addressed next year with the wage and benefit
negotiations.
Bryan Adams informed the Commissioners of the increase on premium charges for life
insurance, long term disability (LTD), and dental insurance. The total increase for all
three benefits is 7.92%. This will be considered along with the health insurance issue that
will be revisited in the fall.
5.3 Review & Consider Sick Leave Policy
At a previous meeting the proper use of sick leave was addressed. Further research of
other organizations sick leave policy was discussed. Staff suggests the following be
added to our sick leave policy.
"Sick leave may be used for illness and doctor visits for the employee or the employee's
dependents including spouse. A dependent is defined as someone that has the same
address as the employee and for whom the employee provides financial support."
Motion by John Dietz to accept and include in our policy manual the above wording
regarding sick leave. James Tralle seconded the motion. Motion carried 3-0.
5.4 Review Cash Flow Projections
Bryan Adams discussed the cash flow studies for the electric and water departments.
These studies continue to reflect an increase in cash reserves for both departments with
the assumed growth and anticipated capital projects.
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Regular meeting of the Elk River Municipal Utilities Commission
May 10, 2005
5.5 Review Hiehwav 101 and CSAH 39 & 42 Intersection Construction
The upcoming highway intersection construction in Otsego and another development
south of Hwy 101 and County Road 39 were discussed. Staff presented the Commission
with a map of the proposed relocation of the electrical lines for the Highway 101 project.
Constructing another electrical distribution feeder to Otsego or utilizing Wright-
Hennepin's Otsego substation was discussed to serve the the long term growth in Otsego.
No action taken.
6.1 Review Annual URGE Test
Elk River Municipal Utilities operates and maintains four diesel generation units at our
power plant. These units are contracted to Great River Energy through a Power
Transaction Agreement based on the proven capacity from the annual URGE test. Staff
did a great job performing this URGE test. The capacity results from this test will result
in over $345,000 in annual payments from Great River Energy.
6.2 Review MDH Public Water Supply Inventory Report
The 2003 survey of the community water supply system was recently received. This
survey reflects no deficiencies. Bryan Adams added that Elk River Municipal Utilities
water system is efficient and well maintained.
The 2004 water confidence report that is mailed out to the water customers is completed
and in compliance with all state and federal regulations.
6.3 Review APPA Rate Comparisons
APPA's electric rate comparison for 2003 was reviewed. In comparison, Elk River
Municipal Utilities is on the high side. How Utilities report the fuel cost adjustment or
power cost adjustments will also influence this survey. This fall during the budgeting
process, staff will do a more thorough electric rate comparison of the surrounding
utilities.
6.4 Review and Consider Bids for Install UG Electrical Conductor
Bids for rebuilding the electrical system in acquisition area 15 were presented. Staff is
recommending MP NexLevel, LLC the lowest responsive bidder be awarded the project.
Motion by John Dietz to award MP NexLevel, LLC the lowest responsive bidder the
Area 15 rebuild project. James Tralle seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
May 10, 2005
Other Business
There was no other business,
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission
will be Tuesday, June 14, 2005.
President Jerry Takle adjourned the regular meeting of the Elk River Municipal Utilities
Commission at 5:30 p.m.
..ctful
.;,
Recording Clerk