2.2 ERMU MINUTES 01-08-2013ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
December 12, 2012
Members Present: John Dietz, Chair; Daryl Thompson, Vice Chair; Al Nadeau, Trustee
ERMU Staff Present: Troy Adams, General Manager;
Theresa Slominski, Finance and Office Manager;
Mark Fuchs, Line Superintendent; David Berg, Water Superintendent;
Wade Lovelette, Technical Services Superintendent;
Tom Sagstetter, Conservation & Key Accounts Manager
Others Present: Cal Portner, City Administrator;
Peter Beck, Attorney from Gray Plant Mooty Law Firm;
Greg Oxley, MMUA
1.0 CALL MEETING TO ORDER
John Dietz called the December 12, 2012 meeting to order at 3:30 p.m.
1.1 Pledge of Alleeiance
The Pledge of Allegiance was recited.
1.2 Consider Utilities Agenda
Troy Adams delayed 5.1 until January.
Daryl Thompson moved to approve the amended December 12, 2012 Utilities Agenda. Al
Nadeau seconded the motion. Motion carried 3-0.
2.0 CONSENT AGENDA (Approved By One Motion)
John Dietz had questions, staff responded.
Daryl Thompson moved to approve the Consent Agenda as follows:
2.1 November Check Register
2.2 November 13, 2012 Regular Meeting Minutes
2.3 Financial Statements
2.4 457(b) Plan Document
Al Nadeau seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
December 12, 2012
3.0 OPEN MIC
No one appeared for open mic.
4.0 OLD BUSINESS
4.1 Wage and Benefits Committee Update
hi October 2011, ERMU Commission formed a Wage and Benefits Committee comprised of
one Commissioner, John Dietz; and three managers, Troy Adams, Theresa Slominski, and Mark
Fuchs. The intent for the creation was to have the committee review and analyze wage and benefits
information, receive comments and questions from employees relating to wage and benefits, and
ultimately present information to the ERMU Commission for action.
The wage and benefits Committee met on October 16" and 30th. The Committee updated the
ERMU Commission in November where the Commission approved a number of items as follows:
• Expanding the On -Call Residency Rule radius to 20 miles from the Field Services Building
• Revising the Nightwork Rest Time period to 10:00 p.m. to 6:00 a.m.
• Increasing the Sick -Time Conversion maximum to 120 days
Daryl Thompson moved to renew the dental plan as presented. Al Nadeau seconded the
motion. Motion carried 3-0.
The wage percentage and the impact on ERMU were discussed. Daryl Thompson and John Dietz
agree that a 3% wage increase is sufficient for this economy. Theresa Slominski asked the ERMU
Commission if they have any plans on catching up on the ground that has been lost in recent years.
Daryl Thompson asked if this was regarding the metro average, Theresa Slominski affirmed, and
asked if there were any plans on closing the gap? Al Nadeau voiced his concern about losing several
linemen due to wage differences. Daryl Thomson said the economy is still tight. Discussion
followed. Consensus was there were no plans for future comparable compensation. Troy Adams
questioned if the Commission was interested in the longevity plan? Daryl Thompson said he would
like to see it worked on as soon as possible.
Daryl Thompson moved to approve a 3% COLA (2013 Cost of Living Adjustment). Al Nadeau
seconded the motion. Motion carried 3-0.
4.2 2013 Budget
The revised 2013 budget was reviewed. The proposed electric rate increase for 2013 will result
in an approximate increase of 4.1 % for residential and non -demand commercial customers, and 3.7%
for the demand commercial customers. The water rate increase will be an overall 2.5%, with an
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Regular meeting of the Elk River Municipal Utilities Commission
December 12, 2012
increase in the basic monthly charge and the first tier. Theresa Slominski informed Commission of an
increase in insurance cost from League of MN Cities.
Greg Oxley of MMUA discussed the importance of the Washington, D.C. trip that was
budgeted for 2013. Discussion followed. Consensus was to allow the trip for 2013. Another item for
discussion was the use of iPad's for future meetings instead of the paper books. Discussion followed
regarding other uses. Daryl Thompson suggested leaving the funds in the budget and learning more
about them and how to use them.
Al Nadeau moved to approve the 2013 budget as presented. Daryl Thompson seconded the
motion. Motion carried 3-0.
5.0 NEW BUSINESS
5.1 Eneineerin¢ and Inspection Services for Freeport Water Tower Rehabilitation
Delayed until January.
5.2 ERMU Performance Metrics Policy
The Wage and Benefits Committee reviewed and supported a Performance Metrics and
Incentive Compensation Policy. This is a company performance based program designed to
incentivize employee commitment towards the company's success. Discussion followed.
John Dietz moved to implement the Performance Metrics and Incentive Policy with a 2%
compensation with the option of the Commission being able to increase the percentage after the
audit. Al Nadeau seconded the motion. Motion carried 3-0.
5.3 Purchase of Property 1627 Main Street (Parcel ID #75-411-0240)
At the August 2012 ERMU Commission meeting, the Commission authorized staff to contact
the owner of 1627 Main Street NW (Parcel ID 475-411-0240) regarding the purchase of that property.
Discussion followed regarding the future needs of ERMU and the cost of the property. John Dietz
recommended negotiating with the property owner and sees this as investing in ERMU's future.
Rezoning issues were discussed.
Daryl Thompson moved to go ahead with negotiations to purchase the property at 1627 Main
Street (Parcel ID #75-411-0240). Al Nadeau seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
December 12, 2012
5.4 Water Treatment Chemical Bids
On December 4, 2012, bids were opened for water treatment chemicals for 2013. David Berg
recommends awarding the bid to Hawkins, Inc.
Daryl Thompson moved to award the bid for 2013 water treatment chemicals to Hawkins, Inc.
Al Nadeau seconded the motion. Motion carried 3-0.
6.0 OTHER BUSINESS
6.1 Staff Updates
The LED Lighting contest was discussed.
Peter Beck announced he would be retiring from Gray Plant Mooty at the end of the year and
going into private practice. The City of Elk River will be going out for bids at the beginning of the
year. John Dietz stated he wants the City of Elk River and ERMU to have the same attorney. John
Dietz thanked Peter Beck for his service stated that a lot of things have been cleaned up.
6.2 Set Date for Next Meeting
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, January 8, 2013, at 3:30 p.m.
The Commission recessed the regular meeting at 4:55 p.m.
6.3 Closing of Meeting: "Meeting to be closed pursuant to MN Statute 13D.05, Subd.
3(c)(3) to develop or consider offers or counteroffers for the purchase or sale_ of real
or personal Property."
a. Call Closed Session to Order
b. Discussion
c. Adjourn Closed Session
6.4 Adjourn Regular Meeting
Daryl Thompson moved to adjourn the regular meeting of the Elk River Municipal
Utilities Commission at 6:08 p.m. Al Nadeau seconded the motion. Motion carried 3-0.
Minutes prepared by Judy McSpadden.
John J. Dietz
Chair, ERMU Commission
Tina Allard
City Clerk