10-09-2007 ERMU MINELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE ~ 14~
UTILITIES COMMISSION ~ r
HELD AT UTILITIES CONFERENCE ROOM ~~
October 9, 2007
Members Present: Jerry Takle, President; Jerry Gumphrey, Vice Chair; James Tralle, 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
1. Call meeting to order October 9, 2007
Commission was informed that James Tralle would be late. President Jerry Takle called
the October 9, 2007, meeting to order.
2. Consider Utilities Agenda
Bryan Adams added an item to discuss under Other Business. Jerry Gumphrey moved to
approve the October 9, 2007, Utilities Agenda. Jerry Takle seconded the motion. Motion
carried 2-0.
Consider Consent Agenda
Jerry Gumphrey questioned a couple of entries on the check register, staff responded.
Jerry Gumphrey moved to approve the Consent Agenda as follows:
September Check Register
September 11, 2007, Minutes
Financial Reports
Jerry Takle seconded the motion. Motion carried 2-0.
5.1 Staff Updates
Bryan Adams notified commission of Cretex hitting a water main running through their
property as they were constructing a new casting bed. Cretex will reroute the water main to an
alignment suitable to Elk River Municipal Utilities and Cretex. A Habitat for Humanity
certificate of appreciation was awarded to Elk River Municipal Utilities for their CIP
contributions to the latest habitat house. The Hillside water tower was recently inspected, and
the interior was found to have some corrosion. A cathodic protection system installed in the
water tower should slow down the corrosion process, thus putting off maintenance for another
three to four years.
Glenn Sundeen reviewed a graph showing the peaks of four substations from GRE's
SCADA system made available to Elk River Municipal Utilities. 'There are still a few more
street lights to be installed in the Deerfield improvement project. Staff is in the process of
reconfiguring electrical backfeed for the Otsego feeders.
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Regular meeting of the Elk River Municipal Utilities Commission
October 9, 2007
Theresa Slominski said Steve McDonald, auditor, was recently at the office in preparation
of the upcoming audit, and discussed changes necessary regarding internal control
documentation. Theresa also informed commissioners about a customer very disappointed
with the deposit policy. Jerry Takle asked if there have been any problems with BillFlash.
Theresa responded the bills have been going out on time and there are not many postal address
errors.
David Berg said the cord that was previously stolen from one of the wells has been
repaired and is now in a gated area. Well #5 was shut down for repairs, and the Johnson Street
tower carved the additional load.
Troy Adams reported 11 security system sales with 22 service calls. Security cameras are
being installed at various locations. Virginia transformer is currently inspecting the substation
transformer at their location and should be delivering to the Waco site by the end of the
month. Updated map books are being printed, and one of the locators has been utilizing a
laptop in place of the map book, which has been working well.
5.2 Review Abandoned Water Service Policy
At the September Elk River Municipal Utilities Commission meeting, we discussed the
issue of abandoned water services. Jerry Gumphrey suggested setting a fixed fee instead of
the owner paying the estimated cost to make repairs in the event the water service started
leaking. Staff recommends the following proposed language be adopted.
In the case where local unit of government will not issue a street disruption permit to
allow the proper abandonment of water service, property owner shall pay Elk River
Municipal Utilities the estimated costs to properly abandon water service along with GPS
coordinates of the abandoned water stop. The Elk River Municipal Utilities will then assume
all future liability to properly abandon water services and shall do so in case of service line
leaks. Estimated cost shall be X2500.
If in the future the water service is reused, the Elk River Municipal Utilities will refund the
initial paid amount to the property owner. In the event a service to be reused is not ofproper
materials per Section 104, a new service shall be installed by owner and old service shall be
abandoned by Elk River Municipal Utilities.
Jerry Takle moved to adopt the proposed language for Abandoned Water Services. Jerry
Gumphrey seconded the motion. Motion carried 2-0.
5.3 Review Health Insurance
As discussed at the last commission meeting, the renewal for health insurance costs will
increase 12.7% this year. The insurance premiums from last year compared to this year were
reviewed along with the cost sharing between the employee and the employer. The employee
insurance task group met to discuss the renewal insurance cost and prefers to stay with the
same policy. The task group also discussed the possibility of adding a H.S.A. plan under a
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Regular meeting of the Elk River Municipal Utilities Commission
October 9, 2007
6.3 Review Renewable Energy Products
Elk River Municipal Utilities is considering two renewable energy products. They are
the expansion of LFG to Electric Generation facility at the landfill, and adding generators to
the Lake Orono dam. Both projects require significant permitting efforts and costs. The costs
and issues were reviewed.
Waste Management is considering taking over the expansion of the LFG to Electric
Generation facility at the landfill. Deb Walters of Elk River Landfill will keep the Utilities
appraised as to the outcome of their decision.
The high maintenance cost of the existing engines at the landfill results from high sulfur
content in four to six wells. The plan is to plumb the wells together directly to the flair thus
by-passing the engines. This may cause some SOZ allowance issues.
Adding generators to the Lake Orono dam does not cash flow. The permitting costs far
exceed the costs to do the construction thus making the project uneconomical.
James Tralle moved to receive and file the renewable energy report. Jerry Gumphrey
seconded the motion. Motion carved 3-0.
6.4 Discuss Succession Policy
Due to the upcoming retirement of several management level positions, a succession
policy discussion was recommended by James Tralle. With the Cities growth the concern for
proper staff becomes an issue. James Tralle's concern is that there are plans in place to fill
management positions when current management retires. Also his concern is that
management is not overworked to cause burn out. Discussion followed.
6.5 Review Street Light Request Co Rd 13 & 40
Staff has been notified that street lights are necessary in the area east of Twin Lakes
Elementary School on Cleveland Avenue (County Road 40). Staff recommends installing
street lights at the following locations.
1) Intersection of Twin Lakes Road (County Road 13) and
Cleveland Avenue (County Road 40).
2) Intersection of Cleveland Avenue and 191St Avenue.
James Tralle asked if there was a street light committee, staff responded that this has been
managed locally with the cooperation of the City and Police Department.
Jerry Gumphrey moved to approve the installation of two street lights along Cleveland
Avenue. James Tralle seconded the motion. Motion carved 3-0.
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Regular meeting of the Elk River Municipal Utilities Commssion
October 9, 2007
"dual coverage" scenario. Jerry Gumphrey said he is aware of problems with the H.S.A. plan
and does not recommend implementing it at this time. Commission reviewed the cost sharing
of the 2008 insurance plan. The 2008 BCBS Aware Gold plan with the current 25%/75% split
along with a 20%/80% split, as requested by Jerry Gumphrey, was reviewed.
Jerry Gumphrey moved to approve the renewal of the BOBS Aware Gold insurance plan with
the 20%/80% split. Jerry Takle agrees but would like to table the motion until James Tralle
arrives.
6.1 Review & Consider Proposed Expense Budget
The proposed 2008 electric and water expense budgets were reviewed. Water expense
budget increase from last year is 6.8%. Electric expense budget increase from last year
without power costs is 7.2%. The water connection fees remain unchanged, however the
water usage for the 1 sc step is currently $1.40 and recommendation is to raise it to $1.50 along
with the 2°d step from $3.25 to $3.50. The electric rate change will be determined upon Great
River Energy's final rate change which is undetermined at this time.
James Tralle arrived during the expense budget briefing. Consensus was to revisit 5.3 for final
approval.
5.3 Review Health Insurance (Revisited)
James Tralle was briefed on the discussion regarding insurance coverage.
Jerry Gumphrey moved to approve the renewal of the BOBS Aware Gold insurance plan with
the 20%/80% split. Jerry Takle seconded the motion. Motion carried 3-0.
6.2 Review Bid Tabulation for Co Rd 1 Feeder
The 2007 electric budget contains a $305,000 item to start construction of a new feeder
along County Road 1. This feeder will accomplish the dual purpose of looping the existing
overhead feeder on County Road 33 and facilitating the territory acquisition Area 22 along
County Road 1. Acquisition of Area 22 will take place in 2009 and is the last area to be
acquired under our current agreement with Connexus Energy.
The first phase of the project is an underground feeder on County Road 1 for County
Road 33 south to 209`x' Avenue. Jerry Takle questioned the security of the material used for
the project. Staffresponded the electrical cable is locked up at night. Further discussion
followed with staff recommending award be given to Midwest Diversified Utilities, LLC, due
to the lowest bidder having safety and installation quality issues in the past.
Jerry Gumphrey moved to award the County Road 1 Electric Feeder project to Midwest
Diversified Utilities, LLC, the lowest responsive qualified bidder. Jerry Trkle seconded the
motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
October 9, 2007
Other Business
Bryan Adams reported employees are paid every two weeks. Field workers pay period ends
every other Wednesday, administrative workers ends every other Friday. Payday is officially
on Friday. Practice for the last 30 years + is that checks were delivered on Thursday instead
of Friday. Staff recommends all employees are paid every two weeks with pay period ending
on Wednesday for all employees. Actual payday shall be the following Thursday afternoon.
Jerry Gumphrey moved to approve the pay period change for Office staff and management to
Thursday thru Wednesday, and distribution of paychecks Thursday afternoon. James Tra11e
seconded the motion. Motion carried 3-0.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission
will be Tuesday, November 13, 2007 at 4:00 p.m.
President Jerry Takle adjourned the regular meeting of the Elk River Municipal Utilities
Commission at 5:40 p.m.
spectfully mi
\ _.___- _
Judy Mc addn'~
e rding Cler
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J ,;.:
ry Ada~s~~J
eneral Manager