09-09-2008 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
September 9,2008
Members Present: Jerry Talde,President;John Dietz,Vice Chair;Jerry Gumphrey,Trustee
Staff Present: Bryan Adams,General Manager;Glenn Sundeen,Line Superintendent;
Theresa Slominski,Finance Director/Office Manager;
Troy Adams,Engineering Manager;Mark Fuchs,Lead Lineman;
Judy McSpadden,Recording Clerk
Staff Absent: David Berg,Water Superintendent
Others present: Lori Johnson,City Administrator;Rebecca Haug,Environmental
Administrator;Jeff Gongoll,Community Development Director
1. Call meeting to order September 9,2008
President Jerry Takle called the September 9,2008,meeting to order.
Jerry Takle requested 5.2 be moved up.
5.2 Consider Jackson Street Water Tower&Project Conserve
Rebecca Haug informed the Commission of a new pilot project called"Project Conserve"
which is a program geared toward working with 30 families to conserve electricity,natural
gas,water,gasoline,and reducing waste. It was asked of the commission to help support this
venture and share half the cost of Vance Zehringer's time which is estimated to be around
$5000,and also procure some prizes as incentives such as low flow shower heads,compact
fluorescent bulbs,moisture probes,etc.
John Dietz moved to approve$2500 from the CIP budget for Vance Zehringer's time along
with providing some miscellaneous CIP incentives. Jerry Gumphrey seconded the motion.
Motion carried 3-0.
Jeff Gongoll discussed the progress to date on the preservation of the Jackson Street
water tower. At the last Heritage Preservation Commission(HPC)meeting the possibility of
raising funds to preserve the water tower on Jackson Street was discussed. The HPC
respectfully requests a 12 month timeframe to try and raise funds to preserve the water tower.
Jerry Takle commented that the Jackson Street tower has not been functional for the past 25
years,and Elk River Municipal Utilities promotes conservation yet the cost to maintain this
tower would contradict this,however it is a historical landmark to some. John Dietz asked if
any grants were available,Jeff Gongoll responded they are checking into historical grants.
John Dietz said he feels the water tower has historical value and would like to see it saved.
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Regular meeting of the Elk River Municipal Utilities Commission
September 9,2008
John Dietz moved to delay the decision on the Jackson Street water tower for one year. Jerry
Gumphrey seconded the motion. Motion carried 3-0.
2. Consider Utilities Agenda
John Dietz added items to discuss under Other Business. John Dietz moved to approve
the September 9,2008,Utilities Agenda. Jerry Gumphrey seconded the motion. Motion
carried 3-0.
3. Consider Consent Agenda
John Dietz remarked on the checks being issued for lawn care. He would like to see the
City departments along with the Utilities sharing one lawn care service to cut costs,instead of
several different lawn care companies as is now being done. John Dietz also commented on
the financials and the projected short fall in the water department,discussion followed.
John Dietz produced and distributed minutes of the special closed meeting held August 25,
2008. He summarized the action taken at the closed meeting. A motion was made by John
Dietz to hire the law firm of Gray,Plant and Mooty to conduct an investigation into workplace
issues with a cost not to exceed$12,500 without Commission approval. Jerry Gumphrey
seconded the motion. Motion carried 3-0.
John Dietz moved to approve the Consent Agenda as follows:
August Check Register
August 12,2008,Minutes
August 25,2008,Special Meeting Minutes
August 25,2008, Special Closed Meeting Minutes
Financial Reports
Jerry Gumphrey seconded the motion. Motion carried 3-0.
5.1 Staff Updates
Bryan Adams shared an electric load graph for electrical usage in one week. The
variances and spikes were evident during evening hours and weekends versus during the work
day. The possible cancellation of the purchased power agreement with Connexus Energy was
discussed along with Elk River Municipal Utilities future generation and transmission needs.
The United Health Group(UHG)sound issue was discussed. Staff continues to pursue an
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Regular meeting of the Elk River Municipal Utilities Commission
September 9,2008
amiable solution. Lori Johnson informed Commission of an upcoming meeting with UHG
regarding this issue.
Troy Adams reported 10 security sales in August with 24 service calls. Letters are being
sent out to homeowners that are being monitored by another company to let them know of our
rates. Locates are slow so staff has been working on updating the map books so new ones can
be printed in the near future. The meter shop is gearing up to do substation maintenance and
taking oil samples from transformers and regulators. A residential customer recently installed
a solar panel for his home. Staff will track this solar energy customer.
Theresa Slominski said MMUA notified us of a Federal Trade Commission regulation
requiring us to implement a red flag policy. This policy deals with companies taking
proactive measures to identify and prevent identity theft. Staff will pursue this and bring back
to the commission for review. We received the health insurance renewal rates for 2009 and it
is a 6.8%increase which will go into effect January 1,2009. A meeting with the broker from
David Martin Agency is scheduled for Thursday, September 11,2008.
Glenn Sundeen reported the County Road 39 rebuild project should be energized this
week,Brentwood rebuild is near completion,and the Deerfield 1st and 2"x rebuild in Area 18
is just getting started. The possibility of restructuring some of the job responsibilities at the
plant was presented to the commission. John Dietz asked if the employee new of this, staff
responded no. Consensus was to revisit this at the next regularly scheduled meeting with the
employee present.
5.3 Review&Consider Policy Amendments
At the previous Elk River Municipal Utilities Commission meeting,staff was directed to
draft a number of personnel policies. Staff has started the process of drafting the required
policies and presented some drafts for feedback. The Employee Theft, Sale and Trade of
Unwanted Supplies and Equipment,and Employees Use of Supplies and Equipment were the
three polices drafted with the help of a committee of staff members. Discussion followed as to
the verbiage and the content of these new policies.
John Dietz moved to have the labor law firm of Gray Plant and Mooty,approve policies when
they are recommended to the commission prior to adoption. Jerry Gumphrey seconded the
motion. Motion carried 3-0.
6.1 Review& Consider Proposed 2009 Capital Projects
The first draft of the capital budget for 2009 was presented. In the electric and water area,
there is an increasing need to do maintenance in existing areas due to its age or life
expectancy. In the administrative area,one of the items was to replace a vehicle for daily Post
Office runs and monthly runs for the bills. The bills need to be in an enclosed vehicle. Right
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Regular meeting of the Elk River Municipal Utilities Commission
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now staff utilizes a suburban used for the water department. Each time it has to be cleaned out
to make room for the numerous trays of bills. John Dietz asked if there was anything else
available so funds would not have to be spent on another vehicle. Lori Johnson said the City
might have something. Staff was advised to check into this.
6.2 Consider Re-roofing of Power Plant
The power plant was planned to be re-roofed in 2009. Numerous leaks are making it
necessary to be done now. This project is estimated to be$80,000. Staff has requested bids
on this project.
Jerry Gumphrey moved to proceed with re-roofing the power plant this year,a special meeting
will be held if necessary to award contract. John Dietz seconded the motion. Motion carried
3-0.
6.3 Consider Retirement of Electric Superintendent
Glenn Sundeen,Line Superintendent,has formally turned in his resignation as of the end
of September. John Dietz asked how long he has worked for Elk River Municipal Utilities,
Glenn replied 36 years.
Other Business
John Dietz commented on the hiring process of department heads. John Dietz feels the
commission should interview final applicants that would be filling a department head position.
Bryan Adams indicated the Commission has always had that prerogative and has encouraged
them to participate in the interviewing process.
John Dietz moved to have commission interview department heads with final selection to be
made by the commission. Jerry Gumphrey seconded the motion. Motion carried 3-0.
John Dietz said the interviews with the labor law firm of Gray Plant and Mooty have started
and should be completed in the next week and the process will be over soon. John Dietz also
indicated he has received calls about some employees making threats to other employees.
Staff was directed to warn employees not to make threats to other employees.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission
will be Tuesday,October 14,2008 at 4:00 p.m.
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Regular meeting of the Elk River Municipal Utilities Commission
September 9,2008
President Jerry Takle adjourned the regular meeting of the Elk River Municipal Utilities
Commission at 5:40 p.m.
Respectfully s mi
u Mc den
Rec ding Cler / )
B Adams
G neral Manager