2.2 ERMU MINUTES 02-11-2014ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
January 14, 2014
Members Present: John Dietz, Chair; Daryl Thompson, Trustee
Members Absent: Al Nadeau, Vice -Chair
ERMU Staff Present: Troy Adams, General Manager;
Theresa Slominski, Finance and Office Manager
Wade Lovelette, Technical Services Superintendent;
Tom Sagstetter, Conservation & Key Accounts Manager;
David Berg; Water Superintendent
Eric Volk; Water Superintendent
Jennie Nelson, Executive Administrative Assistant
Others Present: Cal Portner, City Administrator; Peter Beck, Attorney
1.0 CALL MEETING TO ORDER
John Dietz called the January 14, 2014 meeting to order at 3:30 p.m.
1.1 Pledge of Allegiance
The Pledge of Allegiance was recited.
1.2 Consider Utilities Agenda
There were no changes to the agenda.
Daryl Thompson moved to approve the agenda, John Dietz seconded the motion.
Motion carried 2-0.
1.3 Recognition of Zylstra Harley Davidson HOG Chapter's Service
Eric Volk recognized the Zylstra Harley Davidson Harley Owner's Group's service to the
utilities as they dug 185 hydrants out of the snow around the City of Elk River. This group has been
doing this for several years.
Eric Volk presented a volunteer appreciation plaque to Danette Chovan who was present on
behalf of the entire Harley Owner's Group. The commission thanked her for the Group's continued
volunteer efforts.
2.0 CONSENT AGENDA (Approved By One Motion)
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John Dietz had a few questions on the fmancials, staff responded. Daryl Thompson moved to
approve the Consent Agenda as follows:
2.1 December Check Register
2.2 December 17, 2013 Previous Meeting Minutes
2.3 Financial Statements
2.4 2014 Tariffs
2.5 2014 Tri -County Action Program Services Agreement
John Dietz seconded the motion. Motion carried 2-0.
3.0 OPEN MIC
No one appeared for open mic.
4.0 OLD BUSINESS
There is no old business.
5.0 NEW BUSINESS
5.1 Refundine of the 2006A Electric Revenue Bonds
Early last year the commission had discussed the potential for refunding debt issues
2006A and 2007A bonds. Financial consultants, Springsted, provided further review of refunding
bonds for ERMU. At the December meeting, staff and the commission determined that the
2006A bonds should be refunded in 2014 and the payment timeline should be adjusted to have
the bonds paid in 2018.
Terri Heaton from Springsted was present at the meeting to explain the refunding and
answer any questions the commission had. Since the City of Elk River is the entity that is
qualified to issue bonds, the resolutions must also be approved by the City Council to be
effective. Discussion followed.
Daryl Thompson made a motion to refund the 2006A electric revenue bond. John Dietz
seconded the motion. Motion carried 2-0.
5.2 20134 1h Quarter Delinquencies
Theresa Slominski presented the 2014 4`h Quarter Delinquencies. She informed the
commission that the numbers are the lowest they have been in a long time. In comparison to
others in the industry, the standard is typically .19-.36% of revenue and ERMU is at .029%.
Discussion followed.
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Daryl Thompson made a motion to approve the 4`h Quarter Delinquencies. John Dietz
seconded the motion. Motion carried 2-0.
6.0 OTHER BUSINESS
There was no other business.
6.1 Staff Updates
Troy Adams said that he would like to thank David Berg for his service to Elk River
Municipal Utilities as this is his last commission meeting before retirement.
There was a billing error in December causing some people to receive two identical bills. John
Dietz asked Theresa Slominski what happened. Discussion followed.
Mark Fuchs told the commission that there was a problem with the Otsego substation the night
before and it had to be shut down. The meter department caught the problem before an outage
happened. Staff is working to get it fixed.
Eric Volk updated the commission on how many hydrants were participating in the Hydrant
Maintenance Program. David Berg mentioned that there is $20,000 available to offset well sealing
costs for some customers. ERMU would pay 75% of the sealing and the customer would pay 25%.
There is also money set aside as part of the Wellhead Protection Plan.
Tom Sagstetter informed the commission that he will be hosting staff from Michele
Bachmann's team on January 24.
Cal Portner wanted to thank ERMU staff for all of their help with Hockey Day Minnesota. He
also got a call from MNDOT as they were questioning why Energy City's mission statement is
written in a transportation statute. Staff is working to find an answer.
John Dietz wanted to thank David Berg for his dedication and service to ERMU.
6.2 Set Date for Next Meeting
The next regularly scheduled Commission meeting will be on February 11, 2014.
The Commission recessed the regular meeting at 4:28pm.
6.3 Closine 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
6.5 Adiourn Regular Meeting
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Daryl Thompson moved to adjourn the regular meeting of the Elk River Municipal
Utilities Commission at 4:34. John Dietz seconded the motion. Motion carried 2-0.
Minutes prepared by Jennie Nelson.
John J. Dietz
Chair, ERMU Commission
Tina Allard
City Clerk
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