INFORMATION #1 11-02-2009ELF VE. Nl CIPA.L UTILITIES
ULA NIEETIN F T E
UTILITIES C~NIIISSI~N
HELD AT UTILITIES CE NCE ~~NI
October 13, Zoo9
Members Present: John Dietz, President; Jerry Gumphrey, Vice Chair;
Daryl Thompson, Trustee
Staff Present; Tro Adams Director of ® erations~
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Theresa Slominski, Finance Directorl0ffice Manage
Mark Fuchs, Line Superintendent; David Berg, Water Su°~,endent;
Wade Lovelette, Technical Services Su erintend~;
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Judy McSpadden, Recording Clerk; Michael rie, dam Freibe~.°~~ ~A~rt Gatchell,
Scott Thoreson, Chris Sumstad, Lex Anderson, Shane Defeyter, Gent ~rrock
Gthers present: Lori Johnson, City Administrator; Te~°= curer, Cry Public works ~~ct~r;
Peter K. Beck, Attorne from Gra ~~Plat ~QO La~,Firm
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1. Call meeting to order October 13p ZO
John Dietz called the October 13, 2009 ~~~et~g order at 4:00 6rn~ `fs
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2. Consider Utilities .A~ena
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John Dietz added a code ~~ items far discus~o~1 under other business.
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Da l Thom son m~ovcd rv~~e `the October 13~ OO9 Utilities A enda, Jer hum hre
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seconded the motion. Nl+aon a.~e ~ ~ ~r
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3. Corsi er Consent A a
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~:oln Utz questioned tie reason a sb~antial refund was given to a local business. Troy Adams
responded t ~-?~ due to a billi~ witch¢~'tenants years ago. The problem has since been corrected
and the tenar~~ ~~ been notified f the demand billing they will be charged. Troy Adams informed the
Commission on ~i Peak Dem.d charges for some small businesses. There are approximately 12 to
ZO small businesses bg cha~°ed a demand because of a piece of equipment that could be used
during the nontlpeaking ~. of day, John Dietz asked if the business that owes the back billed
demand charges for the,ast year has been notified of the fees due. Staff responded yes, Vance
Zehringer has been working with them. John Dietz asked if they were able to come up with the funds,
Troy Adams responded they would like to set up a payment plan. Discussion followed regarding a
discount if paid right away.
Jerry Cumphrey moved to offer a ~o% discount on the back billed charges to 3~~~ Dimension if
fees are paid within 3o days. Daryl Thompsan seconded the motion. Motion carried 3ro.
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Regular meeting of the Elk River Municipal Utilities Commission
October 13, 2009
Troy Adams asked Commission for approval to do a study on a low load factor rate for customers.
John Dietz approved and directed Troy to bring back to Commission for discussion.
Additional questions were asked regarding the Conservation Improvement gram ~C~P}
reimbursements and the CAP~2020 contributions. John Dietz directed ~`her~a~Slominski to do an
analysis of 2008 and 2009 CIP monthly expenses and reimbursement ag with CAPX2020.
John Dietz voiced his concern regarding the net profit to date being elo~~ ~~~. He is concerned that
not enough of the rate increase was passed on to the customers.
Daryl Thompson moved to approve the Consent .Agen~ as fellows:
September Checl~ Register
September ~, 2009, Regular Meeting Nlinntes tk~ h`.
Financial Reports
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Jerry Gumphrey seconded the motion. i :cried 3-0.
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4.1 Review and Consider Revised Ern to ee ~ ndook
At the September $, 2~ ~ Commissitn meeting, sta~~vas directed to have Mark
Mathison from Gray Plant booty coinue with the review of the ERMU Handbook. There were a
number of olicies that ~tered addiibnal research ar information. These included the wee ons
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Prohibited, Electric Recon~ tipeds and Lead Pay inferential, Paychecks, and Voting Leave
Policy. Discussion. followed. ~ ~~ resl ~e as Follows;
Section . ~i~led VL~eap~ns ohibite., ould be f~uther clarified to specif cally identify the exceptions
of M~~'s Underground ~ci.ol in tl~e p~~.g and the Overhead School in the fall. Any other events
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will ~ee~`' ~ approved by the Commi~~n. ~.
~ Section 25 titled electric Reco.ect Stipend will need to be rewritten due to the Fair Labor Standards
Act ~FLSA} requi~ct. The ~rrent reconnect policy and fees involved were discussed. Discussion
followed as to the need o'reconnecting customers after hours, John Dietz stated the customer is
turned off after they have ceived several notices and have not made payment arrangements; the
customer should take care of their accounts during working hours, John Dietz directed Troy Adams to
survey area utilities, Jerry Gumphrey stated he did not have a problem with turning customers on
after hours but they should have to pay a premium, Daryl Thompson stated he would like to
discontinue reconnects after hours completely, John Dietz asked how many customers were turned
off far nonpayment this month. Theresa Slominski responded there were approximately S0shut-offs,
Troy Adams said he will survey area utilities and bring back to the commission to revisit. This section
could be eliminated with no stipend paid if there was a reconnect to do and regular after hours
compensation policies followed.
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Regular meeting of the Elk River Municipal Utilities Commission
October 13, 2009
Section 2~ titled Paychecks, is in regards to the change of pay periad dates. Effective the pay period
for the end of October, the pay period will change from Thursday through Wednesday, to Tuesday
through Monday. The On~Call switch will take place Tuesday Morning. N changes proposed.
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~ Section 52 titled 'doting Leave, is required by Minnesota Statutes. F~~er discussion followed and
management commented this has not been an issue. No changes prpos~~
John Dietz asked Attorney Peter Beck if the handbook could c ap~oved being ire were changes.
Peter Beck stated as ion as the char es were stated and tie Section 25 Electric connect Sti end
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was removed, the handbook could be approved, .~~
Daryl Thompson moved to approve the E ~J Emplocc adbool~ with the added change to
Section 9, weapons Prohibited with the exception of ~~~ Spring and Fall schooling, and
the omission of Section ~5, Electric Rec~:ct Stipend. Jere phrey seconded the motion.
lotion carried 3~0. _
4,2 Review and Consider Pay .euest or 200
At the A ril 14, 2009 ~ r ~eetin the car~ission voted for a 0% a increase but to revisit
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in 6 months, Troy Adan xeviewed ~e past process for comparing and calculating pay requests for
employees.
Art Gatchell addressed the o~.issa~ gibing a brief description of his work history, the praise of
ERMU and his coworkers, a the in~pc~~ o~ke~~ing exceptional employees by following the
metro average s
Due to a~~ney recom~.e~..ations, t tabled and will be voted an at the November ERMU
Comson meeting. ~`
Da l Thom moved to tae this~iiscussion until the November E ~ Canamission
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I~eetin. Jerre phrey seoded the motion. Lotion carried 3~0.
4,3 Review Request bP eveloper for one dear Deferral of wAC ~verbal~,
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At the September ~, 2009 ERMU Commission meeting, Commission was asked if they would
defer the wAC fees for the new proposed 53 unit building in Elk River Station, Commission voted to
go along with the decision the City of Elk River made regarding the deferral of fees. 1f the City of Elk
River deferred fees then ERMU would defer the wAC fees. Lori Johnson updated commission that
the City of Elk River denied the deferral of fees for the new building at Elk River Station.
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Regular meeting of the Elk River Municipal 1tilities Commission
October 13, 2009
5,1 eview and Consider N~UA Safe Nana ement Pro ram
ERMU utilizes MMUA to provide the safety management program. Discussion followed
regarding the program. Troy Adams asked far authorization to execute the ~reement with MMUA.
Jerry ~u~nphrey moved to approve the contract with NIUA Safe NXanagement Program.
Daryl Thompson seconded the motion. NXotion carried 3~0.
5.2 Review anal Consider 200 Expense ud~e~ ~~~~~'
Troy Adams reviewed the 2010 Expense Budgets °~rry Mauer spoke of the need. t~ address the
short fall in the water department budget, Discussion ~~llwed on v.ys to increase fu~.dm John Dietz
directed Theresa Slominski to check an the 75125 account li far lec~c and water shared fees to
make sure they are being properly split and to report back to the ~~mmission with her findings.
Terry Maurer said he would like to analyze dater services, rates, ~ fees. Peter Beck agreed with a
need for a wAC fee increase. Daryl Thomps~ ~tioned the rate parisan with surrounding
Cities, David Ber res onded, Lori Johnson ~~foed Commission the :~onomic Develo ment
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Department is doing a survey of SAC and wA fees a o~~l: have4,t~e results in a week. John
Dietz directed staff to investigate and bring back to thee:: Carr~~an "
5.3 Review and Co 0~.o C nervation Im ,oven~ent Pro rain CAP Bud et
The State of Minnes~. man~ted a chars e in C~~ s endin in 2010 that now re uires there
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to be 1.5% energ~~ r~~.uctian ins ~f sepng ~5%0 of revenue on energy reduction. Discussion
followed reg°di~~ ~e steps be~~.g en to achie~ this requirement. This was informative only, no
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action w~ taken.
6,1 Staff rtes
Troy Adarn~ formed the commission of a recent quote request for underground frost trenching
during the winter months and Midwest Diversified Utilities was awarded the bid. Sherburne County
is now included in the ats that can join in the State bid for fuel, The City of Elk River has asked
ERMU if they would li: ~ j oin in with them.. The savings is substantial and would be very
beneficial to ERMtJ. Terry Maurer said the City is buying in for 75% of their yearly use and
recommends ERMU do the same. Consensus of Commission was to buy in with the City of Elk
River on the state bid for fuel.
David Berg reported on a hydrant recall that involves about 400 of ERMU's hydrants. The
problem is with the grease used in the hydrants in 1998. Waterous is going to pay $40 per hydrant to
fix the problem. ER_MU staff is going to repair 50 hydrants, then will check on the cost to see if it is
beneficial to repair in house or contract out and have waterous pay them directly,
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Regular meeting of the Elk River Municipal Utilities Commission
October 13, 2009
wade Lovelette reviewed a couple quotes received for the paving project at the Power Plant. The
necessity for the work to be done was discussed.
Daryl Thompson moved to go ahead with the paving project at the Power Plant and to award it
to the lowest bidder. Jerry Gumphrey seconded the motion, odor ; ~~ 3mo.
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Te Maurer addressed the Commission re ardin the Power P~ o' ect and he is Lakin care
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of the permitting applications,
Mark Fuchs updated the Commission on the assistance to rad Marais ~ e end of September.
Two crews were sent to help restore power to area residen~~ Jd~ Dietz asked ~v~o would pay for
this. Troy Adams responded that Grand Marais would
John Dietz commented he has made it his ersQn~ ~ssion to ~. ut a hoto of eve~~~ ~~~mmissioner
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on the conference room wall and asked for up to $250 to a.~re ~~ matting for the photos, and
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name plates with years served, Fellow Commissioners app~µc~ this project. John Dietz
commented on an article in the paper regar~~pg street light fees ~ having neighborhoods pay for the
lights in their area. John Dietz directed staff fey areas and tl~e ~~ber of customers per light
and to bring back for discussion at a future c.~ `$'
6.2 het Date f®r Next eta
The next re ularl scheduled metro of the E~ River Mu.ci al Utilities Commission will be
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Tuesday, November l ~, ~~9, at 4:O .m.
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6.3 A.d.~ourn Re 2:~~~1r ~ coin
Pres~denl John~ie~ :`ourne the re ular meetin of the Elk River Munici al Utilities
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Commisson at 6:10 p.m.
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6.4 CLOSE SSI®N ~- Pc` ormance review, NIN Statute 13D,o5, Subd, 3
Under separate cover.
Minutes prepared by Jucl McSpadden.
John Dietz
President, ERMU Commission
Tina Allard
City Clerk
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