02-09-2010 ERMU MINELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
February 9, 2010
Members Present: John Dietz, President; Jerry Gumphrey, Vice Chair;
Daryl Thompson, Trustee
ERMU Staff Present: Troy Adams, Director of Operations;
Theresa Slominski, Finance Director/Office Manager;
David Berg, Water Superintendent;
Wade Lovelette, Technical Services Superintendent;
Judy McSpadden, Recording Clerk; Richard Wagner
ERMU Staff Absent: Mark Fuchs, Line Superintendent
City Staff Present: Lori Johnson, City Administrator; Bob Pearson, IT Manager
Others Present: Peter Beck, Attorney from Gray Plant Mooty Law Firm
1. Call meeting to order February 9, 2010
John Dietz called the February 9, 2010 meeting to order at 4:00 p.m.
2. Consider Utilities Agenda
Troy Adams requested. agenda item 5.4 Review and Consider Phone System Recording Options
be moved up to accommodate Bob Pearson.
Daryl Thompson moved to approve the February 9, 2010 amended Utilities Agenda. Jerry
Gumphrey seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
John Dietz questioned the checks for legal fees and what they were for, Theresa Slominski
responded. John Dietz requested a more detailed description on future payments for legal fees.
Jerry Gumphrey moved to approve the Consent Agenda as follows:
3.1 January Check Register
3.2 January 12, 2010, Minutes
3.3 Financial Reports
Daryy Thompson seconded the motion. Motion carried 3-0.
5.4 Review and Consider Phone System Recording Options
At the January 12, 2010, ERMU Commission meeting, Jerry Gumphrey directed staffto look
into the possibility of implementing a phone recording system. A demo of the OAISYS phone
recording system was performed with the City of Elk River's IT staffpresent. The two proposals
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Regular meeting of the Elk River Municipal Utilities Commission
February 9, 2010
provided were the rack mount system and the standing tower system. The IT department preferred the
rack mount version because it is similar to the one currently used by the City of Elk River.
Discussion followed regarding the OAISYS phone recording system and the recording capability of
the current phone system. Consensus of the Commission was to have an intro message stating the call
may be recorded, and to use the current phone system option of recording the call with a push of a
button. Bob Pearson was asked by ERMU Commission to acquire pricing for licensing and storage
capabilities on the current phone system and return to the next regularly scheduled ERMU meeting in
March.
4.1 Review Inventory Inteerity Prowess
At the February 2009 ERMU Commission meeting, the final draft policy for inventory was
approved. Throughout the rest of 2009, cycle counts were performed along with ayear-end count
involving all field staff for electric, water, and security departments. Throughout the year everyone
stepped up to take ownership of a successful inventory accounting.
John Dietz said staff should be commended on doing a great job, Jerry Gumphrey and Daryl
Thompson agreed.
5.1 Review ERMU 2009 Annual Report to the City Council
Each year all departments of the City of Elk River provide annual reports to the City Council.
These reports are also provided in a digital format and placed on the City's website for the general
public. The presentation date is yet to be determined, but is scheduled to be in April.
Troy Adams reviewed the annual report and asked Commissioners if there was anything they
wanted to add to the report. John Dietz said an organizational chart should be added and the electric
reliability report that compares outage information to surrounding electric suppliers. Jerry Gumphrey
said he thought the Big Stone project should be included in the report being staff spent so much time
on the project. Troy Adams wanted to point out the great work and improvement in the Security
System sales. The Security System sales were up 14% for 2009.
5.2 Review 2010 Territory Acquisition
This year ERMU is scheduled to acquire the final area from a 20 year old territory acquisition
agreement with Connexus Energy. This area is located east of County Road 1 near the intersection of
County Road 32. Area 22 includes the Elk River Golf Course and approximately 25 other customers.
The 2010 budget contains a $150,000 line item for new development which includes the estimated
$90,000 for the acquisition. Also included in the 2010 budget is a $120,000 line item for rebuilding
Area 22. Staff will be meeting with Connexus on March 1 S` to work through the details of the
acquisition. An update will be provided at the March ERMU Commission meeting. Staff
recommends authorization to proceed with these budgeted items.
Jerry Gumphrey moved to proceed with the purchase of the budgeted items for the territory
acquisition in Area 22. Daryl Thompson seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
February 9, 2010
5.3 Review Flex Plan Document
Since 1998, ERMU has offered a Flexible Benefits Plan to its employees to be able to exclude
from tax medical and dental premiums, and also participate in dependent care and medical expense
reimbursement plans that offer tax savings. These plans fall under the IRS regulations for Section 125
Cafeteria Plans.
In 2008 a Flexible Benefits Plan Document was adopted, that was compliant with IRS
regulations. Changes in the law necessitate revision of that document. The document was drafted
with the appropriate changes by Hitesman & Associates, and has been reviewed by ERMU's
attorneys at Gray, Plant, Mooty. There are a lot of changes that are semantics and/or presentation
oriented. Other items that changed or were added are a language related to the increased COBRA
obligations of employers (when an employee leaves employment and is allowed to continue on the
health insurance at their own expense, now some cases warrant a sharing of costs), Reservist
obligations of employers (for those employees enlisted in reserve duty), and HIPPA information
protection (private, nonpublic information specific to employees). Staff recommends approval of the
revised Flexible Benefits Plan.
Jerry Gumphrey moved to adopt the revised ERMU Flexible Benefits Plan Document as
presented. Daryl Thompson seconded the motion. Motion carried 3-0.
6.1 Staff Updates
Troy Adams reminded the Commissioners of the upcoming Energy Expo on February 27~', the
Business Expo on April 11 ~', and the MMUA Winter Legislative Conference March 24"' thnu the 26~'.
Discussion followed regarding an agreement executed in February of 2007 with Central Minnesota
Municipal Power Agency (CMMPA) to participate in the CAPX Brookings-Twin Cities transmission
development project through Midwest Munici~al Transmission Group (MMTG). The 2010 Annual
MMTG meeting is scheduled for February 10 , an update will be provided at a future Utilities
Commission meeting. Research continues for future wholesale power suppliers.
For the past several months, staff and Peter Beck continue to review the customer policies and
security deposits. CMMPA and MMUA are also performing a member survey and the results of that
survey should be available for the March ERMU Commission meeting. John Dietz directed staff to
bring this issue of the customer policies and security deposits back to the Commission for discussion
at a future meeting.
John Dietz asked for additional explanation and clarification of the W2c forms mentioned in the
staffupdate, Theresa Slominski responded.
David Berg reported he is in the process of acquiring bids from engineering firms on the Well
Head Protection Plan for the three newest wells. A Water Rate Study is in progress and results should
be available for the March ERMU Commission meeting. An update was given regarding the interest
of other cell phone companies in putting antennas on the water towers and the status of the tower
rental contract agreements.
Wade Lovelette spoke for Mark Fuchs who was unable to be at the meeting but wanted the
Commissioners to know that staff has been checking on the Street and Security lights to make sure
they are being billed properly. Some discrepancies have been found and corrected. Staff will
continue to check out areas for lighting when time is available. The line crews are testing hot sticks
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Regular meeting of the Elk River Municipal Utilities Commission
February 9, 2010
and getting the trucks ready for their annual inspections. John Dietz asked why month after month
staff continues to work on the noted lock-out tag-out procedures. Wade Lovelette responded that
OSHA now requires written policies on everything from using a piece of equipment to how to climb a
pole.
6.2 Set Date for Next Meeting
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, March 9, 2010, at 4:00 p.m.
6.3 Adiourn Regular Meeting
Daryl Thompson moved to adjourn the regular meeting of the Elk River Municipal
Utilities Commission meeting at 5:10 p.m. Jerry Gumphrey seconded the motion. Motion
carried 3-0.
Minutes prepared by Judy McSpadden.
Dietz
~~
Tina Allard
City Clerk