09-08-2009 ERMU MINELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMIVIISSION
HELD AT UTILITIES CONFERENCE ROOM
September 8, 2009
Members Present: John Dietz, President; Jerry Gumphrey, Vice Chair;
Daryl Thompson, Trustee
Staff Present: Troy Adams, Director of Operations;
Theresa Slominski, Finance Director/Office Manager;
Mark Fuchs, Line Superintendent; David Berg, Water Superintendent;
Wade Lovelette, Technical Services Superintendent;
Judy McSpadden, Recording Clerk
Others present: Lori Johnson, City Administrator; Terry Maurer, City Public Works Director;
Peter K. Beck, Attorney from Gray Plant Mooty Law Firm
1. Call meetinE to order September 8, 2009
John Dietz called the September 8, 2009 meeting to order at 4:00 p.m.
2. Consider Utilities Agenda
John Dietz added a couple of items for discussion under other business.
Jerry Gumphrey moved to approve the September 8, 2009 Utilities Agenda. Daryl Thompson
seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
Staff answered questions from the Commissioners.
Jerry Gumphrey moved to approve the Consent Agenda as follows:
August Check Register
August 11, 2009, Regular Meeting Minutes
Financial Reports
Daryl Thompson seconded the motion. Motion carried 3-0.
4.1 Review and Consider Revised Employee Handbook
At the July 14, 2009, ERMU Commission meeting, staff was directed to have Mark Mathison
from Gray Plant Mooty review the ERMU Employee Handbook in its entirety while incorporating in
the newly revised policies. After multiple discussions with staff, Mark Mathison has finished
reviewing the handbook. A draft of the revised handbook was reviewed.
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Regular meeting of the Elk River Municipal Utilities Commission
September 8, 2009
Troy Adams went over the draft of the employee handbook that staff had questions on. After further
discussion, Mark Mathison will finalize some of the issues brought forth and present a final draft to be
approved at a future meeting.
John Dietz moved for Mark Mathison of Gray Plant Mooty Law Firm to do an annual review
of the Employee Handbook. Jerry Gumphrey seconded the motion. Motion carried 3-0.
John Dietz directed Gray Plant Mooty Law Firm to also review the sections in the Administration
Policy Manual that interact with the Employee Handbook.
5.1 Review and Consider Cable Installation Bids for Hwy 101 and Co Rd 39 Loon
On September 8, 2009, bids were opened for contracted work on the Hwy 101 and Co Rd 39
loop at the Waterfront East Development in Otsego. Staffrecommends awarding to the lowest
responsive bidder, Midwest Diversified Utilities.
Daryl Thompson moved to award the lowest responsive bidder, Midwest Diversified Utilities,
the Hwy 101 Road Crossing project on Co Rd 39 in Otsego. Jerry Gumphrey seconded the
motion. Motion carried 3-0.
5.2 Review and Consider 2010 Capital Budget
Staff continues to work through the 2010 budget process. The proposed 2010 capital budget
portion was reviewed. No action taken.
5.3 Review and Consider Irrigation Record Drawing
Irrigation systems are susceptible to leaks and breakage. Staff is suggesting the owners of
imgation systems have their contractor provide a "record drawing" of their system for future reference
in case damage should occur. Since ERMU is not the owner of these systems, the homeowner should
hold the "record drawings". A customer handout was reviewed that could be provided by the
Building department at City Hall along with other current handouts regarding irrigations systems.
Consensus of the Commission was to have the Building Department hand out the irrigation memo
recommending the customer obtain drawings for their irrigation system in case future problems occur.
5.4 Review and Consider Request by Developer for One Year Deferral of WAC
A development company is proposing to construct a 53 unit apartment building on Outlot D in
Elk River Station. The developer is asking for a one year deferral of the WAC fees along with other
fees the City of Elk River would impose. The City Council will be discussing this at their September
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Regular meeting of the Elk River Municipal Utilities Commission
September 8, 2009
14~` work session and will make a fmal decision at the September 21, 2009 Elk River City Council
meeting. Lori Johnson stated the decision would be contingent upon the City Council approval.
John Dietz moved to go along with the City Council decision of the deferral, if the City declines
so would ERMU Commission for WAC fees. Jerry Gumphrey seconded the motion. Motion
carried 3-0.
6.1 Staff Updates
Troy Adams informed Commission of the upcoming CMMPA 2009 Member Summit and
Dinner and an invitation was extended. Troy also gave an update on the recent MMUA summer
meeting that Theresa Slominski attended with him. Another data center is interested in locating in Elk
River but no final decision has been made. Vance Zehringer recently toured the American Legion
building and performed a CIP audit to help with their electric consumption.
Theresa Slominski reported on the PCA status that was discussed at the last ERMU Commission
meeting. For the July bill ERMU will be receiving a PCA credit of over $150,000 bringing the
accumulated charges from Connexus to $59,244.39 year to date. The Automatic Bill Payment flyer
went out with the August bills.
John Dietz questioned David Berg if the sprinkling ban applied to customers that have their own
well. David affirmed. Discussion followed regarding community knowledge to this. John Dietz
directed staff to send out a bill stuffier next spring regarding the sprinkling ban rules.
Other Business
John Dietz summarized the recent meeting with the Elk River Citizens League. A question was
asked regarding the future of the Utilities. John said his response was that as long as ERMU can be
competitive, selling would not be an issue. A lot of good questions were asked and Troy Adams and
Vance Zehringer aided in answering their questions and concerns. Another issue John addressed is
that there was concern from employees regarding this meeting. John went on to state that there is no
conspiracy going on and he advised that employees should leave their paranoia at home.
John Dietz commented that Troy Adams should have a performance review like the one that will
be performed in a closed meeting after this regular monthly meeting.
John Dietz moved to do a performance review on Troy Adams for his six months as Director of
Operations in a closed meeting per MN Statute 13D.05, subd. 3. This will be conducted after
the October regularly scheduled ERMU Commission meeting. Jerry Gumphrey seconded the
motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
September 8, 2009
6.2 Set Date for Next Meeting
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, October 13, 2009, at 4:00 p.m.
6.3 Adiourn Regular Meeting
President John Dietz adjourned the regular meeting of the Elk River Municipal Utilities
Commission at 5:40 p.m.
6.4 CLOSED SESSION -Performance Review, MN Statute 13D 05, Subd 3
Under separate cover.
Minutes prepared by Judy McSpadden.
J Die
esident, ERMU Co 'ssion
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Tina Allard
City Clerk