07-15-2008 ERMU MIN~_
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ELK RIVER MUNICIPAL UTILITIES ~n
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
July 15, 2008
Members Present: Jerry Takle, President; John Dietz, Vice Chair; Jerry Gumphrey, Trustee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
David Berg, Water Superintendent;
Theresa Slominski, Finance Director/Office Manager;
Troy Adams, Engineering Manager; Judy McSpadden, Recording Clerk
Others present: Lori Johnson, City Administrator
1. Call meeting to order July 15, 2008
President Jerry Takle called the July 15, 2008, meeting to order.
2. Consider Utilities Agenda
Bryan Adams and John Dietz added items to discuss under Other Business. John Dietz
moved to approve the July 15, 2008, Utilities Agenda.. Jerry Gumphrey seconded the motion.
Motion carried 3-0.
3. Consider Consent Agenda
John Dietz questioned why there was overtime, staff responded it is from on-call time and
incidents that happen after hours. John Dietz moved to approve the Consent Agenda as
follows:
June Check Register
June 10, 2008, Minutes
Financial Reports
Jerry Gumphrey seconded the motion. Motion carried 3-0.
5.1 Staff Uadates
Lori Johnson informed commissioners that the Elk River City Council approved
fmancing $250,000 of the new trunk water main along 193rd Avenue for the road extension
project and will use Connexus Energy to install lights on Hwy 10.
Bryan Adams said staff has been fielding several complaints regarding high bills. Many
employees are asking about going to a 4 day work week as a strategy to save money. The
commissioners felt that because of the need to be open 5 days a week, and with staff working
longer hours utilizing computers, lights, etc., this would not save energy it would cost the
utilities more. Well #9 is now pumping, with much higher manganese levels than was
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Regular meeting of the Elk River Municipal Utilities Commission
July 15, 2008
detected in the test well. Hopefully this will work itself out so additional treatment won't be
necessary. On Monday there was a major outage affecting 1/3 of Elk River. This was caused
by a transformer exploding when it was being refused. The top of the transformer blew off
and hit the overhead three phase conductors causing an arc, a chain of events happened
causing the substation to shut down. Troy Adams said it was discovered that the recloser
controller at the substation failed. Jerry Gumphrey asked what was learned from this incident.
Glenn Sundeen responded that this substation was scheduled for testing this fall and that
maybe the testing schedule should be more often that the six year interval it is now on. Jerry
Takle agreed that the testing should be done more often.
Glenn Sundeen updated the commissioners on the current projects which include
Brentwood cable replacement, Area 18 preluninary work, County Road 39 construction, and
replacing transformers in the Ridgewood East area. Staff continues working on mapping
updates, fuse coordination, and changing out old cutouts. Sherburne County called to have
three poles moved along County Road 1 north of 221 ~` Avenue. This overhead line is very old
and in need of replacement. Staffrecommends installing this section underground at a cost of
approximately $25,000. Consensus was to proceed with upgrading the overhead cable to
underground cable in this area.
Theresa Slominski said staff still has issues with the stuffmg machine. The service
technicians are helping to solve the issues with paper thickness and programming. A capital
equipment refund claim has been applied for, totaling approximately $148,000. Starting this
month the transit tax of .25% is in effect for customers in Hennepin County. Reports are being
finalized to various Federal and State agencies for Kwh purchased and sold. Information is
being gathered and submitted to fulfill GASB 45 compliance for our auditors.
David Berg said the meter and pumps are installed at Well #9. Staff is working with
street department on the road resurfacing projects and bringing the water valves up to grade.
The generators are being utilized at the well to reduce peaking hours.
Troy Adams said since the outage a lot of testing has been done to pinpoint the problems.
Troy commended the staff for restoring power in just over 12 minutes. The security
department had 11 sales and 20 service calls in June. Locates are down, so staff has been
updating the mapping systems. Staffcontinues to replace old style meters in areas that are
radio read. Also, staffhas been doing transformer analysis and testing of the current
transformers (CT's) and potential transformers (PT's) for commercial accounts. The summer
safety camp was a big success. Mike Thiry did a good job educating the attendees.
5.2 Review Salary Structure Study
At the June 2008 Elk River Municipal Utilities Commission meeting, staff was directed
to secure a proposal for a pay structure evaluation and comparable worth evaluation. In 2006
the City had a similar study completed. The City received two proposals but both use their
own point evaluation system. Elk River Municipal Utilities has used Hay Group for this type
of work and uses their Job Profile method of job evaluation. It does not make much sense to
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Regular meeting of the Elk River Municipal Utilities Commission
July 15, 2008
change job evaluation methods. Bryan Adams reviewed the Hay Group proposal. John Dietz
asked Lori Johnson to brief the Commission on the City's procedure and their rate structure.
John Dietz asked Lori Johnson to procure a quote from the company that performed their
study so comparisons can be made.
5.3 Review & Consider Wage Adjustments
During the Comparable Worth discussions at the June 2008 Elk River Municipal Utilities
Commission meeting, a couple issues were discussed and asked to be brought back at the next
meeting. The issues were the meter reading contract through McBrady Meter Reading,
contract increase for CIP and special projects Consultant Vance Zehringer, and salary
adjustment for the office clerk position.
The current contract versus the proposed contract for the meter reading was reviewed.
Bryan Adams met with Pat McBrady of McBrady Meter Reading and he approved of this
proposal. In summary, it would be the same cost as negotiated in 2004 except Elk River
Municipal Utilities would receive a 40% decrease for the meter readings being read with the
FC200 handheld radio device.
Vance Zehringer is the part-time consultant who handles the CIl' program and special
projects, including customer visits. The last contract increase was in June 2007, staff
recommends an increase of $2 per hour.
Four people are currently classified as Office Clerk. The surveys performed show this
position has a large spread in pay depending on the actual duties. Staff recommends a $1 per
hour wage increase.
Jerry Gumphrey moved to approve McBrady Meter Reading contract, $2 per hour raise for
consultant Vance Zehringer, and $1 per hour raise for the four Office Clerks. John Dietz
seconded the motion. Motion carried 3-0.
5.4 Review & Consider Bid Tabulation for Electric Line Truck
At the June 2008 Elk River Municipal Utilities Commission meeting, authorization was
given to prepare specifications and secure bids to replace a 1999 Electric Line Truck. The bid
tabulation was reviewed and staff recommends awarding the bid to the lowest responsive
bidder, Dueco, with trade-in. John Dietz asked why the old truck was not being kept for a
spare. Staff responded the cost would be a lot considering it would need to have new hoses,
be supplied with tools, licensed, and insured. Glenn Sundeen said when a truck does need
repair, the crew will use a digger truck until their truck is repaired.
Jerry Takle moved to award the purchase of the Electric Line Truck to Dueco, the lowest
responsive bidder. Jerry Gumphrey seconded the motion. John Dietz abstained. Motion
carried 2-0.
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Regular meeting of the Elk River Municipal Utilities Commission
July 15, 2008
5.5 Update Water Shut-off Policy
At the June 2008 Elk River Municipal Utilities Commission meeting, a water shut-off
policy was discussed. Staffwas directed to draft a proposed policy with the Elk River
Municipal Utilities personnel doing the shut-off, and have Attorney, Ron Black review it.
Staffrecommends requiring a $600 non-refundable payment for tunung offthe water service.
Discussion followed regarding services that have to be dug up if curb stop is bent or broken.
Staffresponded the $600 would be put in a fund to compensate for these issues. Also
discussed was the time frame of turning the water off. It could take days to wait for the check
to clear. Jerry Gumphrey suggests adding electronic transfer fee after $600 payment so funds
could be available sooner.
John Dietz moved to approve the Water Shut-off Request agreement adding the wording
electronic transfer payment processing and work will not be performed until funds have
cleared. Jerry Gumphrey seconded the motion. Motion carried 3-0.
5.6 Review Pricing for Street Light Proiects
At the June 2008 Elk River Municipal Utilities Commission meeting, Highway 10 street
light replacement, and street lighting along with a tnuik water main for the 193rd Avenue road
extension project were discussed. Staffwas directed to provide costs for these projects.
The City was provided with an estimate to install City owned poles and light fixtures
along the Hwy 10 corridor. They have decided to go with a proposal received from
Connexus. Their proposal was to provide, install, and maintain all the lighting for the
Highway 10 street light replacement.
The 193rd Avenue Road extension project has two issues that need to be addressed. First
is the street light installation. Alighting layout of the proposed street lights was reviewed. A
cost estimate for this lighting project is $55,000. This will be addressed at a future City
Council meeting. Secondly is who will be funding the trunk water main installation. As Lori
Johnson stated in the Staff Updates, the City has agreed to fund this portion of the trunk water
main.
5.7 Black Dirt Ordinance Update
The proposed black dirt ordinance was reviewed. The City Planning Commission tabled
this issue for they did not think there were many buildable lots left in the water district, and to
implement this now would seems unnecessary, they also were concerned about enforcement
issues. Discussion followed and consensus was to bring the Black Dirt Policy to the City
Council for their consideration.
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Regular meeting of the Elk River Municipal Utilities Commission
July 15, 2008
6.1 Review MMUA Safety Program
Mike Nemes, the MMUA East Central Regional Safety Coordinator sent a letter
regarding the evaluation of the 2007 safety and loss control programs and gave anover-all
rating of solid good.
6.2 Review & Consider 2"d Quarter Write-offs
Second quarter write-offs totaling $24,992.73 were reviewed. John Dietz asked if this
was average for a quarter, Theresa Slominski responded it was.
John Dietz moved to approve the 2"d quarter write-offs as presented. Jerry Gumphrey
seconded the motion. Motion carried 3-0.
Other Business
A Riverview Community Bank corporate resolution granting signing authority to commission
and appropriate staff was signed at this time. Resolution is attached to the minutes.
Jerry Gumphrey asked Theresa Slominski if the new stul~ng machine is cost effective for the
monthly billing versus outsourcing. Theresa replied that it is the same cost and with-in our
control. When issues arise we can take care of them in house.
Jerry Gumphrey suggested staff set up specs for the possible demolition of the old water tower
on Jackson Street. The Elk River City Council and the Heritage Committee have not met yet
to discuss this issue.
John Dietz said he received a call from a concerned customer regarding his high water bill.
John explained the reason for the higher tier water rate to the customer. The customer felt it
was much higher than the surrounding communities. Discussion followed regarding the rates.
Bryan Adams said a rate comparison was performed last year and he would get that
inforn~ation to John for when he called the customer back.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission
will be Tuesday, August 12, 2008.
President Jerry Takle adjourned the regular meeting of the Elk River Municipal Utilities
Commission at 5:10 p.m.
ctfully bmi
paddert~ _
Reco ing Clerk/'i
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Adams
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