3.0 ERMUSR 05-10-2007ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
April 10, 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
Other Present: Steve McDonald, Abdo Eick & Meyers, LLP; Wade Lovelette, Line Foreman;
Chris Sumstad, Journeyman Lineman; Richard Wagner, Utilities Worker
1. Call meeting to order Apri110, 2007
President Jerry Trkle called the April 10, 2007, meeting to order.
2. Consider Utilities Agenda
Jerry Takle requested 6.2 and 6.3 be moved up to accommodate the employees, and 6.1 to
be addressed when Steve McDonald of Abdo Eick & Meyers, LLP arrives. James Tralle
moved to approve the altered April 10, 2007, Utilities Agenda. Jerry Gumphrey seconded the
motion. Motion carried 3-0.
3. Consider Consent Agenda
James Tralle moved to approve the Consent Agenda as follows:
March Check Register
March 20, 2007, Minutes
Financial Reports
Jerry Gumphrey seconded the motion. Motion carried 3-0.
6.2 Review Compensation Repuest from ERMU Empoovees (under separate coved
Bryan Adams briefed the commission on the wage survey that was performed on the
surrounding communities. The fair wage increase for 2007 that the employees are asking for
is 3.2%. Also requested was an increase in bonus pay. (In cases where the lead lineman is
unavailable the journeyman lineman is appointed lead lineman for the day.) Staff is asking for
the bonus pay to be calculated at 3% above the journeyman lineman wage for the hours they
are lead lineman. Also, Vance Zehringer, part time consultant, has not had a wage increase
since 2004, and an increase is appropriate.
James Tralle moved to approve a 3.2% wage increase for employees, 3% bonus pay for
journeyman lineman acting as lead lineman, and a $4 per hour increase to $39 per hour for
Vance Zehringer. Jerry Gumphrey seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
April 10, 2007
6.3 Review Health Care Savings Plan for Emnloyees
A few years ago, ERMU employees were researching a Health Care Savings Plan
(HCSP) administered by the Minnesota State Retirement System. At that time it was a new
program with little history and all employees needed to participate. Unanimous consensus
was not achieved so the research stopped.
There is again a large interest by ERMU employees to utilize the state administered
HCSP program that allows tax free wages to be set aside in a savings plan to be used to pay
health insurance and out of pocket medical bills after retirement. The issue remains that all
employees must participate in this plan. An employee vote was conducted and 85% of the
employees were interested. Discussion followed regarding the policy and the percentage of
interest. Jerry Gumphrey feels there are other programs out there that do not mandate all
employees to participate. Staff was directed to investigate other programs and return with
findings. This issue was tabled and will be revisited at a future meeting.
6.1 Review & Consider 2006 Audit
Steve McDonald reviewed the 2006 audit. The audit went well with recommendation of
having more documentation on journal entries. Jerry Gumphrey asked if there are any other
items or concerns and Steve McDonald responded no. Jerry Gumphrey commended staff on a
good job. Jerry Takle asked if the IRS reporting was checked against W-2's. Steve
McDonald assured the commission that had been done. Because of future changes in auditing
requirements, it is recommended to continue refining internal policies and procedures.
James Tralle moved to receive and file the 2006 Audit. Jerry Gumphrey seconded the motion.
Motion carved 3-0.
5.1 Staff Up-dates
Bryan Adams discussed the importance of the CO2 emission legislation. A proposed
Resolution was presented to the commission. Staff recommends adopting this Resolution, so
it can be forwarded to State Legislators.
Jerry Gumphrey moved to adopt the "Resolution in Support of Balanced Climate Change
Legislation", and send to everyone involved. James Tralle seconded the motion. Motion
carved 3-0.
Bryan Adams along with the supervisors gave a presentation to the City staff about Elk River
Municipal Utilities.
Glenn Sundeen updated the current projects and some wire theft.
David Berg said staff continues to upgrade meters. Maintenance on Well #5 will soon be
complete.
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Regular meeting of the Elk River Municipal Utilities Commission
April 10, 2007
Troy Adams commented on the Waco Substation project, and the fuse coordination study
is nearing completion. 14 security systems were sold in March, and utility locates are starting
to pick up.
Theresa Slominski said the $2.8 million bond money has been received. We currently
have one company that supplies our dental insurance, life insurance, and long term disability.
Recently another firm contacted the Utilities and would like to bid on supplying the
aforementioned insurance. Bids will be received and brought to the commission for review.
In the past an employee has gone to the post office daily to pick up mail. This was picked up
at the front counter. On busy days the employee would have to stand in line and wait. It was
suggested that the Utilities get a P.O. Box, thus alleviating the wait. A P.O. Box will be
utilized for future use. The cost is $184.00 for 6 months. Theresa brought up that an
employee questioned if the Tobacco Cessation policy included the spouse.
James Tralle moved to include spouses that are currently insured through the Elk River
Municipal Utilities health insurance policy to be eligible for the Tobacco Cessation policy.
Jerry Gumphrey seconded the motion. Motion carved 3-0.
5.2 Review Irving Water Main Proiect
The Irving Avenue area water main project is being done in conjunction with the street
rehabilitation project. The original thought was to just replace the 4" water main on 6~' & 7`''
Street, and the Gates Avenue loop, but due to many old fire hydrants, the project was
expanded to replace seven additional hydrants. Considering St. Andrews Catholic Church
facility expansion, replacing the main on Irving Avenue between 4U' & 5`" Street was bid as an
alternative. The costs associated with this project were discussed. St. Andrews was contacted
regarding a possible contribution to the water fund. This project will cost approximately
$225,963, of which $100,000 was budgeted. If project is approved, additional funds will
come from reserves.
James Tralle moved to proceed with the Irving Water Main project. Jerry Gumphrey
seconded the motion. Motion carried 3-0.
5.3 Review Well #9 Location
Due to the increased demand for water, we need another production facility by the
summer of 2008. Water quality tests have been conducted at three sites and Twin Lakes
Estates outlot K (which was deeded to us for a potential well site when Twin Lakes Estates
was platted) is the one to utilize without a treatment facility.
Jerry Gumphrey moved to proceed with the Twin Lakes location for municipal Well #9.
James Tralle seconded the motion. Motion carried 3-0.
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Regular meeting of the Ells River Municipal Utilities Commission
April 10, 2007
6.4 Review & Consider Write-Offs
First quarter write-offs were presented. Write-offs are written off our system but then
sent to Advantage Collection Agency to further pursue. Staff recommends approving the
write-off list for the first quarter totaling $12,812.47. Outstanding debt from LandCor was
discussed.
James Tralle moved to approve the write-off list for the first quarter as presented. James
Gumphrey seconded the motion. Motion carried 3-0.
6.5 Review & Consider Black Dirt Ordinance
With summer approaching, water consumption will increase due to lawn sprinkling. The
northwest area of the Twin Cities including Elk River, have very sandy soil making moisture
retention for lawns very difficult. Many cities, at the urging of the DNR, are requiring 4" of
black dirt under lawns as a strategy to increase moisture retention and thereby conserving
water. Staff surveyed the surrounding communities and discovered the majority of them have
the 4" black dirt ordinance. Cities that have this ordinance indicate an approximate 10%
savings in water usage.
Staff recommended the following ordinance be sent to the planning commission and City
Council for approval.
"Topsoil -Prior to seeding or sodding, all single family, townhouses, and condominium
lots must have a minimum of 4 "black dirt as topsoil, covering all areas that are to be
sodded, seeded or areas that will be landscaped. Black soil retains water better and
reduces the need for excessive irrigation. "
Discussion followed as to who would enforce the ordinance, and when it would be required to
be done. The City of Big Lake allows three months to complete, whereas the City of Hanover
requires an escrow fund. Staff was directed to meet with the building department to discuss
options. This will be revisited at a future meeting.
6.6 Review Boiler & Machine Insurance
The Ells River Municipal Utilities has maintained boiler and machine insurance to cover
equipment repair or replacement in case of failure. The equipment covered is the
engine/generators at our power plant and landfill gas facility along with our station
transformers. Unfortunately, the cost of this insurance continues to rise as well as the
deductible. The deductible has gotten so high, it is questionable if it is worth carrying the
insurance for the diesel plant facility. The policy was renewed for this year but a decision will
have to be made for the next year. It was the consensus to look into this for the next year.
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Regular meeting of the Elk River Municipal Utilities Commission
April 10, 2007
Other Business
Glenn Sundeen suggested to the Commission a new street light should be installed at the
intersection of County Road 33 & County Road 77. By consensus the Commission
authorized this light to be installed.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission
will be Thursday, May 10, 2007 at 3:30 p.m.
President Jerry Takle adjourned the regular meeting of the Elk River Municipal Utilities
Commission at 5:05 p.m.
s ectfully su fitted
Judy McS d n
Recording Cl rk