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3.0 ERMUSR 05-16-2006ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION April 11, 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 Other Employees Present: Wade Lovelette, Mark Fuchs, Richard Wagner, Trevor Gwiazdon, Vivian Schmidt, Greg Scherber Others Present: Steve McDonald, Abdo, Eick & Meyers, LLP; Bob Pearson, City IT Coordinator, Steve Rohlf, Roger Renner, Scott Powell 1. Call meeting to order April 11, 2006 President Jerry Takle called the April 11, 2006, meeting to order. 2. Consider Utilities Agenda John Dietz has an item for discussion under Other Business. Jerry Takle requested 6.2 be moved up to accommodate the employees. James Tralle moved to approve the April 11, 2006, Utilities Agenda as amended. John Dietz seconded the motion. Motion carried 3-0. 3. Consider Consent Agenda John Dietz questioned the January income for water compared to last years income for January, staff responded. James Tralle moved to approve the Consent Agenda as follows: March Check Register March 14, 2006, Minutes Financials John Dietz seconded the motion. Motion carried 3-0. 6.2 Review Wage Request from ERMU Employees Bryan reviewed the results of the salary and benefit surveys from neighboring utilities and cooperatives. Staff brought forward four requests, they are as follows: 1) Wage increase of 3.57%. 2) Revise the on call policy which currently states the lineman must live within a 10 mile radius of the power plant, staff is asking to enlarge that radius. 3) Staff would like to add the following wording to Section 16 "Sick and Severance Pay" of the employee handbook: "Sick leave may be used for up to five (5) days in a calendar month for the instances of serious illness or surgery of family members who may not live with the employee." 4) Add to Section 20 of the employee handbook "Leaves of Absence" (funeral leave) to include step-parents, step-siblings, and step-children. Page 2 Regular meeting of the Elk River Municipal Utilities Commission April 11, 2006 Discussion followed regarding these issues. John Dietz questioned what the City's sick leave policy was, and would also like to know what the office staff receives for a pay increase versus the lineman at other utilities and cooperatives in the survey. Another issue is the changes being reported for CDL licenses. It was asked if Elk River Municipal Utilities should implement a policy regarding CDL licenses and what happens to the employee if it is revoked. John Dietz spoke in favor of a policy before an event happens. James Tralle asked if a HSA health plan was a possibility. Theresa responded she would look into it for next year. Benefit package request was tabled until the next meeting when additional information becomes available. 5.1 Staff Up-dates Bryan Adams displayed the rain gauge that will be mailed out to all water customers this spring. Target Data Center is asking how much they will be able to receive in rebates for their new site. Discussion followed as to the funds available and how they are dispersed. Commissioners indicated to follow staff recommendation and utilize established reimbursement amounts of $10,000 from Elk River Municipal Utilities and $50,000 from GRE. The police department has a couple of confiscated vehicles they are letting us use for the summer help. When we no longer need them, we will sell them and tum over the funds to the police department. Glenn Sundeen said there are several new services installed and staff is currently constructing anew line through the Aggregate Industries gravel pit. Work is nearing completion for West Substation Bank 2 and the Otsego Substation expansion. In mid-April work will start at Hwy 101 and County Road 42 to bore electrical lines under the roadway to accommodate the new construction along Hwy 101. The rebuild of Concord is finished and tree trimming has been completed for the season. David Berg reported there were 14 new security sales for March, soiree due to the Business Expo. The energy house is now open to the public. Staff is currently filling the Johnson Street water tower and maintenance on Well #6 is complete and it is back on line. Theresa Slominski has fmalized the audit. She updated the commissioners on the sales tax and IRS issues. At a previous meeting credit card payment capability was discussed and because the software programs currently in use by the City are specific to the type of transactions (retail and registrations), another program would need to be implemented for our use. Further investigation of this will be presented at a later date. At this time Jerry Takle requested to move 6.6 up to accommodate the Elk River Ford issue. 6.6 Review Elk River Ford Request Steve Rohlf of Elk River ford is requesting a variance to the City and Utility water policy. Elk River Ford is expanding and part of this expansion includes a car wash. They are hooking up to City water but would like to use a well for the car wash. John Dietz asked what the other Page 3 Regular meeting of the Elk River Municipal Utilities Commission April 11, 2006 car washes have done in the past. Staff responded they have hooked up to the City water system. Jerry Takle moved to deny the request for Elk River Ford to utilize a well for the car wash. John Dietz seconded the motion. Motion carried 3-0. At this time it was requested if 6.1 could be moved up to accommodate Steve McDonalds schedule. 6.1 Review & Consider 2005 Audit Steve McDonald of Abdo, Eick & Meyers, LLP reviewed the 2005 audit. Steve McDonald indicated everything went well with only minor adjustments. John Dietz asked if the cover letter of the audit could be more descriptive regarding the problem that occurred with a previous employee and the changes that have been implemented to assure that it would not happen again. John Dietz moved to receive and file the 2005 audit with a more descriptive cover letter. James Tralle seconded the motion. Motion carried 3-0. 5.2 Review Internet Access & Request Partners Bryan explained the current computer system at the office. Bob Pearson discussed the Request Partners program the City has (which is available now) and how the utilities office employees could utilize this. This summer, after he has the proper appliance in place the Utilities would be able to utilize the intemet through the City hub. Wireless intemet was brought up as the City of Buffalo has this service and supplies it to the community. Bryan Adams was directed to look into the costs associated with supplying wireless Internet to the community. 6.3 Review Cash Flow Projection (Sprin~stad) After the results of the audit are received, staff again looks at our cash flow projections or Springstad Studies. This study looks at our cash flow projections to ensure our water and electric rates are set appropriately to cover our anticipated costs. Bryan Adams reviewed the cash flow projections. The study for both electric and water indicate the cash reserves remain relatively flat for the next few years and do not achieve the desired level of reserves. An electric rate study will be done this year to determine if our rates are appropriate. In the past only the rate increase passed down to us from GRE has been passed on to the rate payer. The Utilities has not passed on the increased costs associated with material, equipment, labor, and benefits such as insurance. This is going to be a factor in future rate increases. Water rates will be watched very closely. Page 4 Regular meeting of the Elk River Municipal Utilities Commission April 11, 2006 6.4 Review & Consider Bid Tabulation - Otsego Feeders On March 27, 2006, bids were received to install the three underground electric feeders in Otsego. Staff recommends the project be awarded to the lowest responsive bidder, Underground Piercing. Motion by James Tralle to award the Otsego Feeder project to Underground Piercing, the lowest responsive bidder. John Dietz seconded the motion. Motion carried 3-0. 6.5 Review County Road 40 Rebuild & Watermain Installation Bryan reviewed the map of the upcoming County Road 40 project. This road project will require us to relocate and upgrade the overhead electric line. To avoid tearing up this new road in a year or two, a trunk waterline should be installed in this road project. The question is how will this water truck line be paid for? The discussion is tabled until the May utilities commission meeting when Lori Johnson, City Administrator, can be present to answer questions. Other Business John Dietz handed out a letter of evaluation for the General Managers personnel file. Jerry Takle moved to approve the letter of evaluation be a part of the General Managers personnel file. James Tralle seconded the motion. Motion carried 3-0. The next regularly scheduled meeting of the Elk River Municipal Utilities Corrunission will be Tuesday, May 16, 2006. President Jerry Takle adjourned the regular meeting of the Elk River Muunicipal Utilities Commission at 6:00 p.m. ectfully su d, ~. .~~ Judy McSpa den Recording Clerk