3.0 ERMUSR 04-11-2006ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
March 14, 2006
Members Present: Jerry Takle, President; John Dietz, Vice Chair; James Tralle, Trustee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
David Berg, Water Superintendent; Theresa Slominski, Office Manager;
Judy McSpadden, Recording Clerk
Others Present: Lori Johnson, City Administrator
1. Call meeting to order March 14, 2006
President Jerry Trkle called the March 14, 2006, meeting to order.
2. Consider Utilities Agenda
John Dietz added one item for discussion under New Business.
James Tralle moved to approve the March 14, 2006, Utilities Agenda. Jolu1 Dietz seconded
the motion. Motion carried 3-0.
2a. Election of Officers for 2006
John Dietz moved to re-appoint Jerry Takle, President; James Tralle moved to re-appoint
John Dietz, Vice Chair. James Tralle seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
John Dietz moved to approve the Consent Agenda as follows:
February Check Register
February 14, 2006, Minutes
Financials
James Tralle seconded the motion. Motion carried 3-0.
5.1 Staff Up-dates
Bryan Adams informed the Commission that GRE is in the process of purchasing the
land for the proposed Waco Substation. We will in turn purchase approximately one acre of
the land needed for our substation from GRE. The transformer has been moved to the Otsego
Substation and work continues for the substation expansion. The transformer that is being
purchased for the West Substation will be inspected by Bryan Adams and Jerry Takle in mid
March. The Briggs property behind the power plant along the river is for sale. Discussion
followed regarding the need for the property and the financial aspect.
James Tralle moved to ask for an appraisal for the Briggs property. John Dietz seconded the
motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
March 14, 2006
Bryan Adams reviewed with the Commissioners a resume of a candidate for the Engineering
supervisor. Department heads were able to interview and are recommending Troy Adams be
offered the position as Supervisor Engineering Services.
James Tralle moved to enter into a hiring agreement with Troy Adams. John Dietz seconded
the motion but limited the starting salary to no higher than a step 3 on the pay scale. Motion
carried 3-0.
Glenn Sundeen reported on a pole fire that had one customer temporarily out of power. There
were a few other outages due to squirrels. Line crews are busy with street light maintenance,
and tree trimming.
David Berg said security sales were up to eight in February. Wells #2 and #4 are finished with
the maintenance and are back on line. Staff has been working with the load management
program for the wells.
Lori Johnson informed the Commission if the Briggs property was bought by the Utilities the
City has concerns regarding outdoor storage. She also updated on status of Request Partners,
an internet communication tool on the website to log complaints and requests.
Discussion followed regarding lack of internet for some office staff at the utilities. John Dietz
requested Bob Pearson be available for the next meeting to explore internet options.
Theresa Slominski reported the audit is complete and expects to have the final audit for the
next meeting. Theresa updated on the State Sales tax abatement issue. Anew vendor
contacted the utilities regarding credit card payments. James Tralle asked Lori Johnson if the
City accepted credit card payments, she said yes, however, they do pay a fee for this service.
John Dietz questioned what percentage and or fees were involved. Discussion followed
regarding the possibility of the Utilities entering into this process. John Dietz asked if the
utilities could piggy back with the City, Lori Johnson replied it would be possible. Further
discussion followed as to who would pay the fees, should it be a budgeted cost for the utilities
or passed onto the customer utilizing the service. John Dietz would like Theresa Sominski
and Lori Johnson to pursue the possibility of implementing this process and revisit this at a
future meeting.
John Dietz would like something in writing from the auditors regarding the abatement of
Federal penalties and interest.
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Regular meeting of the Elk River Municipal Utilities Commission
March 14, 2006
5.2 Electrical Project Update
We are getting into our 2006 budget year and are starting to see some significant
electrical capital budget variances due to added, larger and under estimated projects. The
concerned projects were reviewed and staff recommends delaying some rebuilds and a service
territory acquisition this year to make up the deficit.
5.3 Review MMUA Position Papers
Bryan Adams and Jerry Takle recently participated in APPA's legislative rally in
Washington D.C. Discussion followed regarding the fact sheets and position papers that were
addressed at the rally.
5.4 Update LFG Project
The landfill gas to electric generation project is finally moving ahead. This project entails
adding a 4`'' engine/generator to our landfill facility. The amendments and agreements were
reviewed with staff recommending authorization be given to execute the documents.
James Tralle moved to approve authorization be given to execute the gas purchase, operating
and maintenance, and financing agreement regarding the LFG project. John Dietz seconded
the motion. Motion carried 3-0.
5.5 Review Benefit Survey
It is time to survey the seven comparable utilities for salaries and benefits. Bryan Adams
asked the Commission if there were any specific items they would like surveyed? James
Tralle would like to know if other utilities offered a 401(K) type retirement plan in addition to
existing 457 plan that employees could contribute in. This alternate plan would be employee
contribution only.
6.1 Review & Consider Bids for Data Center Feeder Installation
Wednesday, March 8, 2006, bids were received to install 28,200' of 1000 KCMIL and
500 KCMIL conductors and associated padmount switchgear. This cable is to serve the Data
Center and other loads in western Elk River. Staff recommends awarding to the lowest
responsive bidder MP NexLevel, LLC.
John Dietz moved to award the 1000 and 500 KCMIL underground conductor installation to
the lowest responsive bidder, MP NexLevel, LLC. James Tralle seconded the motion.
Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
March 14, 2006
6.2 Review & Consider Bids for Padmount Switch ear
Wednesday, March 8, 2006, bids were received to furnish and deliver padmount
switchgear for our various underground projects. The switchgear being recommended
represents a large deviation from past years. The existing padmount switchgear is starting to
show corrosion problems and paint failures along with having live front which presents a
hazard to employees. The live front switchgear uses fuses which are expensive, and the dead
front switchgear we are proposing does not require fuses. Discussion followed regarding the
safety and aesthetics of proposed switchgear.
Motion by James Tralle to approve the purchase of the proposed switchgear and award the
contract to the lowest responsive bidder, Cooper Power Systems in care of Border States
Electric. John Dietz seconded the motion. Motion carried 3-0.
6.3 Review Safety Program
The 2005 evaluation letter from Dave Berggren of MMUA was reviewed. Staff has been
very pleased with the work Dave Berggren has done for the utilities. He has made the safety
meetings that are required every year more interesting. He is well liked and goes above and
beyond the necessary training to help in specified areas.
6.4 Executive Session for Propose of Performance Review of General Manager per
Minnesota Statutes 13D.05
This was not part of the regular meeting, see attached.
6.5 Tobacco Settlement Funds
John Dietz brought to Commission the issue of the Tobacco settlement disbursement. He
would like the City and Utilities to pool the funds and share in a smoking cessation program
together, along with other possibilities in the Wellness program.
Other Business
There was no other business.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission
will be April 11, 2006.
President Jerry Takle adjourned the regular meeting of the Elk River Municipal Utilities
Commission at 5:20 p.m.
After a short recess the Commission went into Executive Session per Minnesota Statutes
13D.05, for the performance review of General Manager, Bryan Adams. The Commission
made recommendations, including better communication with staff. The overall performance
review was satisfactory. The minutes from the Executive Session is attached.
Re ctfully s e ,
Judy McSp n
Recording Clerk
Elk ~2iver 1V~unicipal Utilities Commission
Executive Session
March 14, 2006 5:30 p.m.
Commission members present: Je~~y Takle, Jim Tralle, John Dietz
Also present: Brya~~ Adams
The purpose of the executive session was a performance review of General Manager
Bryan Adams.
The Commission reviewed the results of evaluation questionnaires filled out by the
department heads and office staff concerning Bryan Adams.
The Commission went over the results in detail, making several recommendations.
It was decided that Mr. Adams will have performance evaluations every two years.
The executive session was adjourned at 6:05 p.m.
Submitted by:
John Dietz
Cornmissioner