HomeMy WebLinkAboutUtilMinutes_2016_01_11Municipal Utilities Board January 11, 2016
City of Brookings
The regular meeting of the Municipal Utilities Board was held at 1:00 p.m. on Monday,
January 11, 2016, at the Utility Building with the following members present: Carruthers,
Hansen, Harvey, Pitts and President Peterson.
MINUTES
Minutes of the regular meeting held December 14, 2015 and the special meeting held
December 28, 2015 were read and approved.
ADOPTION OF AGENDA
The agenda was adopted.
APPROVAL OF BILLS AND CLAIMS
Motion was made by Harvey, seconded by Carruthers that the following bills and claims
be approved. All members present voted in favor of the motion.
A T & T, Settlement, $1,130.57; A T & T, Cust. Toll Free Number, $54.20; Advance Auto Parts,
Supplies, $1.58; Advanced Media Technologies, Supp, $52.13; Advanced Media Technologies,
Unreg Inventory, $353.70; Allegra, Printing Supp, $1,259.53; American Garage Door,
Repairs/Supp, $45.00; AMP Electric, Labor/Supp, $290.32; Anixter, Supp, $1,804.30; Anixter,
Unreg Inv, $500.80; AOSNC LLC, Maint, $9,012.81; Aramark, Supplies, $379.72;
Authorize.Net, Credit Card Processing Fee, $116.05; Badger Communications, Unreg Inv,
$3,747.00; Ball, Michelle, Janitorial Service, $200.00; Barhite, Brooke, Travel, $40.83; Bauman,
Cassidy, Travel, $5.23; Bendix, Copier Maint, $809.95; BHS Band Boosters, Directory Delivery,
$6,173.75; Bible Baptist Church, Directory Delivery, $819.50; Blooston & Mordkofsky, Legal
Service, $9,509.00; Bluefin Payment Systems, Credit Card Processing Fee, $7,083.88; Border
States Elec, FTTH Inv, $381.60; Border States Elec, Supp, $1,510.70; Border States Elec, Unreg
Inv, $741.06; Borns, Justin, Travel, $92.20; Boy Scouts of America Troop 5, Directory Delivery,
$1,485.00; Bridle Estates, Sewer Charge Reim, $1,680.00; Brookings City Finance, Construction
Documents, $400.00; Brookings Credit Bureau, Delinq. Acct. Collection, $318.21; Brookings
Health System, Used Transformer, $2,225.00; Brookings Human Resource Office, Drug/Alcohol
Screening, $366.00; Brookings Utilities, Office Utility Bill, $50,420.78; Bruns, Brooke, Travel,
$4.03; BSG Clearing Solutions, Settlement, $216.77; Buhls of Brookings, Rug/Supp, $157.10;
Calix, FTTH Inv, $78,580.90; Carquest, Equip Maint, $320.94; Central Business, Supp, $386.84;
Century Business Products, Copier Maint, $350.00; Century Link, Tele Exp, $247.44; CHR
Solutions, Consulting Service, $13,562.00; City of Brookings, Contract Fee, $6,147.50; City of
Brookings, Landfill Fee, $180.81; City of Sioux City, Storm Drainage Fee, $7.59; City of
Vermillion, Utility Bill, $238.95; Cleanslate, Printed Material, $955.00; Codington Clark Elec,
Utility Bill, $60.37; Collins, Kevin, Travel, $607.73; Creative Printing, Printing Supp, $259.32;
Credit Collections Bureau, Delinq. Acct Collection, $849.67; CSSA, Unreg Inv, $41.95;
Culligan of Watertown, Bottled Water, $47.25; Dale's Alignment, Vehicle Maint, $2,631.99;
Dave's Window Cleaning, Window Service, $89.00; Davis Excavating, Snow Removal, $180.00;
DePauw, Sean, Travel, $52.33; Dept of the Treasury, Fed Tax, $5,484.66; Detection Instruments,
Data Plan, $420.00; DLT Solutions, Software, $3,867.74; Drexler, Brian, Travel, $82.73; DVL
Fire & Safety, Supp, $120.00; Earl May Seed & Nursery, Supp, $54.98; Eco Water, Bottled
Water, $92.50; Elkton Public School, Directory Delivery, $121.00; Ericsson Inc, Supp,
$263,615.00; Eurofins Eaton Analytical, Analysis , $864.00; Express Services, Temp Help,
$806.98; Farmers Implement, Equip Maint, $720.93; Fastenal, Supp, $63.77; Fed Ex, Freight,
$29.17; Fiber Comm Solutions, Supplies, $711.30; Fibercomm, Broadband Service, $6,471.38;
First Bank & Trust, Bond Pymt Series 2011, $36,170.63; First National Trust Services, 2012
SRF Loan Pymt, $321,130.70; Flandreau After Prom, Directory Delivery, $797.50; Flexible Pipe
Tool Co, Supp, $12.85; Foerster Supply, Supp, $690.10; Fox Sports Net North, Contract Fee,
$5,790.47; Freeman, Harvey, Travel, $45.90; Golden West Tech, Tech Support, $5,507.84;
Golden West Telecom, Tele Exp, $40.90; GP Auto, Topper, $1,987.79; Grainger, Supp, $80.76;
Graybar Electric, Supp, $338.61; Gridor Const, WWTP Upgrade, $78,900.00; HD Supply
Waterworks Ltd, Supp, $450.00; Heier, Kevin, Conserve/Demand Incentive, $175.00; Herr,
Debra, Travel, $168.25; Hibu Inc-West, Advertising, $397.89; Homestead Do It Center, Supp,
$77.93; Hometown Service, Repair/Supp, $370.08; Howalt-McDowell Insurance, Vehicle Ins,
$1,741.00; I-29 Truck Stop, Repairs, $365.45; Independent Communication, Contract Fee,
$1,071.13; Industrial Machine & Eng, Repairs/Supp, $210.00; Interstate Telecom Coop, Tele
Exp, $1,258.60; Iowa HSEMD, Enhanced 911, $10,029.90; Jerry's Electric, Regulator Maint,
$17,400.00; Johme, Ashley, Travel, $122.48; Karpen, Nick, Travel, $151.80; KDLT TV,
Contract Fee, $2,108.08; KELO, Contract Fee, $2,620.85; King, Sharon, Conserve/Demand
Incentive, $425.00; Knettel, Trever, Travel, $182.28; Knights of Columbus, Directory Delivery,
$585.75; Kranz, Art, Conserve/Demand Incentive, $50.00; Lake Preston FFA, Directory
Delivery, $215.05; Larson Data Communications, PP #1 Tower Control Equip, $49,674.46;
LECA, Settlement, $3,612.00; Lewis Drug, Supp, $79.86; Locators & Supplies, Locator,
$3,952.01; M & T Fire & Safety, Supp, $162.59; Mahanke, Doug, Conserve/Demand Incentive,
$75.00; Martian, Matthew, Travel, $6.90; Martin's Inc, Diesel/Oil, $1,146.37; Matheson Tri-Gas,
Supp, $502.75; Mediacom, Circuit Refund, $343.26; Mediacom, Broadband Service, $97.45;
Medinger, Amanda, Travel, $44.85; Menards-Sioux City, Supp, $29.74; Menards-Sioux Falls
West, Supp, $64.88; Merchant Transact, Credit Card Processing Fee, $487.67; Metaswitch
Networks, Central Office Switching Equip, $246,645.00; Mid South Telecom, Repairs/Supp,
$100.00; Midamerican Energy, Utility Bill, $585.96; Midcontinent, Broadband Service, $346.83;
Midcontinent, Contract Fee, $247.50; Midwest Pest Control, Pest Control, $150.00; Mileham,
Taylor, Scholarship, $500.00; Missouri River, Supplemental Power, $1,283,188.83; Missouri
River, WAPA Allocation, $254,630.54; Mitchell Technical Institute, Registration, $45.00;
MVTL Labs , Wastewater Analysis, $660.00; Napa Auto Parts, Supp, $240.24; National
Processing Co, Credit Card Processing Fee, $4,254.45; Nielson, Brandi, Travel, $16.10; North
West Rec, Utility Bill, $43.81; Northwestern Energy, Natural Gas, $1,153.71; Office Elements,
Maint/Supp, $327.25; Olson, Justin, Travel, $89.13; Olson, Matthew, Scholarship, $500.00; One
Source- Background Check Co, Employee Verification, $44.00; Otter Tail, Utility Bill, $145.89;
Outlaw Graphics, Supp, $120.00; Patrick, Dan, Travel, $14.95; Pete Lien & Sons, Chemicals,
$4,077.36; Power & Tele Supply, Supp, $4,177.74; Prussman Contracting, Gravel, $29.00;
Resmen, Kaylene, Travel, $29.56; RFD News, Advertising, $33.00; Rohl, Brent,
Conserve/Demand Incentive, $25.00; Runnings, Supp, $329.68; Schoon's Pump N' Pak, Gas,
$2,212.28; SD Dept of Health Lab Remit Center, Testing W-WW Samples, $352.00; SD
Telecom, Assessment, $280.00; SD Treasurer, Sales/Excise Tax, $184,191.42; SD Treasurer
CIF, Communication Impaired Fee, $4,597.66; SDN Communications, Circuit Lease, $352.01;
SDN Communications, Hard Drive, $637.94; SDSU, Perform. Eval. W/WW, $101,334.00;
Servicemaster, Janitorial Service, $260.00; Sioux Valley Energy, Utility Bill, $567.27; Solus
Led, Conserve/Demand Incentive, $695.00; South Sioux City, Utility Bill, $234.18; Sprint, Tele
Exp, $57.88; Sprint, PCS Phone Service, $3,557.51; Sprint, PCS Service Fee, $309,525.78;
Sprint, PCS Inventory, $83,681.05; Sprint-Bkgs, PCS Accessories, $81.83; Stanwick, Kylie,
Travel, $98.10; Staples, Supp, $466.43; State of Iowa-Treasurer, Sales Tax, $2,594.15;
Stoltenburg, Audie, Travel, $409.53; Sturdevant Auto Supply, Supp, $654.14; Subway, Meeting
Supp, $425.00; Swiftel Communications, Office Phone Bill, $92,654.08; The UPS Store,
Freight, $219.27; Thompson, Ryan, Travel, $76.92; Tires Tires Tires, Vehicle Maint, $153.00;
Top Notch Cleaning, Janitorial Service, $1,845.00; Tott's Conoco, Tower Lease Pymt, $201.35;
Tower Distribution, Contract Fee, $281.83; Town & Country Shopper, Advertising, $466.00;
Uniform & Accessories Warehouse, Supp, $350.98; UPS, Freight, $839.34; Solus Led,
Conserve/Demand Incentive, $20,085.00; US Postal Service, Postage, $9,000.00; Universal
Service Adm., USAC Contribution, $86,735.45; University Estates, Water Charge Reim,
$3,445.00; US Postmaster-Sx City, Postage, $490.00; Utility Service Co, Well Maint,
$60,300.00; Velodyne Velocity Dynamics, Supp, $158.82; Volkers, Jason, CDL License,
$35.00; Walker & Associates, Unreg Inv, $4,623.00; Watertown Utilities, Utility Bill, $346.84;
Wellmark Blue Cross Blue Shield of SD, Benefit Plan Fee, $244.40; Wells Fargo, Deposit
Tickets, $74.41; Wesco, Supp, $379.20; Wheeldon's, Equip Maint, $15.80; Wright, Richard,
Travel, $35.08; Xcel Energy/NSP, Utility Bill, $164.86; Yseth, Tom, Conserve/Demand
Incentive, $425.00.
The following are Telephone/Utility Refunds:
Aldercreek Plumbing, $99.00; Alhorbi, Taltal, $33.78; Anderson, Dalton, $38.30; Availability
Employment SVSC, $32.75; Badger Farmers Coop, $123.00; Davis, Ira, $365.75; Donaldson,
Brandy, $32.49; Ently, Sheldon & Angelique, $17.29; Ez Payday Advance, $60.22; G A E A
Inc, $253.60; Heinemann, Larry, $631.18; Hopper , Jesse, $56.07; Innovation Village, $116.56;
Kantack, Frances, $16.54; Kortan, James, $38.51; Little, Daniel, $250.24; Messerli, Shanta,
$26.47; Nguyen, Trinh, $15.40; Olson Masonry, $32.03; Profile by Standford, $94.56; Resmen,
Kent, $73.13; Rufer , Mitchell, $28.14; Schroeder, Tate & Cassandra, $48.61; Southland Court
Apts, $46.21; Stafford, Lacey, $10.62; Swift Contractors, $10.23; Thompson, Frank, $121.26;
Tomaszewski, Carrie, $137.87; Warren, Ronnie, $39.25; Weverka, John, $163.04.
PERSONNEL INFORMATION
Department Salaries (December): Electric, $198,690.40; Water, $95,285.55; Wastewater,
$84,704.47; Telephone, $521,640.35;
Retirement, $52,770.10; Social Security, $62,914.17; Insurance, $84,603.14; Deferred Comp,
$13,460.81;
Salary Changes: S. Abbott, $12.66*; C. Christenson, $6,545.88; R. Herb, $12.71*; M. Raske,
$10.09*; S. Hinricher, $19.25; I. Kruse, $21.03;
New Employees:
*Plus commission
PRESENTATION BY MRES ON PROPOSED S-1 AGREEMENT
Joni Livingston from Missouri River Energy Services Director of Member Services and
Communications, presented highlights of the proposed Amendment No. 4 to the MRES S-1
Power Supply Agreement.
AMENDMENT NO. 5 TO THE MRES S-1 AGREEMENT
Motion was made by Harvey that the following Resolution No. 1 – 16 be approved.
RESOLUTION NO. 1 – 16
RESOLUTION APPROVING AMENDMENT NO. 5 TO THE S-1
POWER SALE AGREEMENT AND MISSOURI BASIN MUNICIPAL
POWER AGENCY POWER SALE AGREEMENT (S-1)
(AS AMENDED AND RESTATED EFFECTIVE JANUARY 2, 2017)
WHEREAS, the Utility Board of the City of Brookings, State of South Dakota, is
currently purchasing all electric power and energy it requires to meet the needs of its customers
in excess of City's firm power allocation from the Western Area Power Administration
("WAPA")("Supplemental Power") from Missouri Basin Municipal Power Agency d/b/a
Missouri River Energy Services ("MRES"), pursuant to the terms and conditions of the Power
Sale Agreement (S-1)("S-1 Agreement") for a term extending through December 31, 2045; and
WHEREAS, the S-1 Agreement requires that MRES physically deliver
Supplemental Power of City over the Integrated System ("IS") transmission facilities
administered by WAPA; and
WHEREAS, WAPA joined the Southwest Power Pool ("SPP") Regional
Transmission Organization ("RTO") effective October 1, 2015, and the IS transmission facilities
were moved into SPP (which now has functional control over those facilities) and, as a result,
MRES can no longer physically deliver power and energy over the IS transmission facilities.
Further, because all MRES members are now in the footprint of either SPP market or the
Midcontinent Independent System Operator, Inc. ("MISO") market where power and energy are
financial (and no longer physical) transactions, the S-1 Agreement no longer accurately reflects
how power supply and the delivery of that power and energy are actually transacted in the RTOs.
The RTOs, including SPP and MISO, operate energy markets and transmission networks that
have fundamentally changed the way MRES provides power and energy to its Members under
the S-1 Agreement; and
WHEREAS, these market changes require that Supplemental Power must be
separated from Transmission Service because all MRES Members are located in one of two
different RTOs that operate markets for energy (and capacity), and the physical delivery of
power and energy (i.e. transmission service) is now separate from those actual commodities; and
WHEREAS, it is mutually beneficial to all parties that the base term of the S-1
Agreement which currently continues to 2046 be extended until 2057 to facilitate future
financing of projects on the most advantageous terms and with the least impact on the wholesale
power costs of City and other MRES Members; and
WHEREAS, other changes proposed to the S-1 Agreement will enable MRES to
meet the new transmission service and energy market demands of the changing electric utility
industry in a way that enhances the ability of MRES to effectively and economically provide
Supplemental Power and Transmission Service to City, will provide clarification to the existing
obligations of the parties, will provide flexibility for City to provide for a limited amount of its
customers' needs from its own local renewable resources, and will address the privacy and
security of information on individuals; and
WHEREAS, the Brookings Municipal Utility Board desires that MRES continue
to plan for, provide, and arrange for delivery of all Supplemental Power and Transmission
Service needed by City.
NOW THEREFORE, BE IT RESOLVED by Brookings Municipal Utilities
Board that:
(1) The "Amendment 5 to the Missouri Basin Municipal Power Agency Sale
Agreement (S-1)" among MRES, Western Minnesota, and City is approved in the form
presented; and
(2) The "Missouri Basin Municipal Power Agency Power Sale Agreement (S-1) (as
amended and restated effective January 2, 2017)" and "Schedule A" among MRES, Western
Minnesota, and the City are approved in the form presented.
BE IT FURTHER RESOLVED that each of the Executive Vice President/General
Manager of Brookings Municipal Utilities, and the Chairman of the Board of Brookings
Municipal Utilities, are authorized to execute documents on behalf of Brookings Municipal
Utilities shall be and each of them acting individually hereby is authorized and directed to
execute and deliver to MRES each of the foregoing documents on behalf of Brookings Municipal
Utilities.
Upon calling of the roll, the Resolution was adopted unanimously.
Whereupon, the Chairman of the Brookings Municipal Utilities, David Peterson, declared
the Resolution duly adopted on the 11th day of January, 2016.
ATTEST:
________________________________ _________________________________
Carol Pitts, Secretary Dave Peterson, President
The motion was seconded by Hansen. All members present voted in favor of the motion.
CHANGE ORDER #10 WWTF UPGRADE – PROJECT A
Motion was made by Harvey, seconded by Hansen to approve Change Order No. 10 for
various modifications to the Wastewater Treatment Facility Upgrade – Project A. All members
present voted in favor of the motion.
HDR ENGINEERING AGREEMENT, EXHIBIT K, AMENDMENT NO. 4
Motion was made by Harvey, seconded by Pitts to approve Amendment to Owner-
Engineer Agreement Amendment No. 4 with HDR Engineering Inc. for the Wastewater
Treatment Facilities Upgrade (Phase 1). All members present voted in favor of the motion.
REVISED DELINQUENT WRITE-OFFS
Motion was made by Hansen that the following Resolution No. 2 – 16 be approved.
RESOLUTION NO. 2 - 16
RESOLUTION REVISING RESOLUTION NO. 38-15 AUTHORIZING
DELINQUENT ACCOUNTS WRITE OFFS
WHEREAS Brookings Municipal Utilities Board passed Resolution No.
38-15 authorizing delinquent accounts be written off for the Utilities and Telephone Department
on December 14, 2015; and
WHEREAS an amendment is needed to revise Resolution 38-15 write off
amounts as follows.
NOW, THEREFORE, BE IT RESOLVED by the Brookings Municipal Utilities
Board that pursuant to SDCL 9-22-4, the accounts attached hereto are hereby determined to be
uncollectible and shall be removed from the records and disclosed on the 2015 financial report.
Evidence of such debt shall be retained by the Utilities to support subsequent collections of said
accounts.
Electric $ 56,447.00
Telephone – Wireline $ 34,341.00
Telephone – Wireless $1,012,146.00
Wastewater $ 11,348.00
Water $ 12,281.00
Refuse $ 4,504.00
TOTAL $1,131,067.00
Adopted this 11th day of January, 2016.
ATTEST:
________________________________ _________________________________
Carol Pitts, Secretary Dave Peterson, President
The motion was seconded by Carruthers. All members present voted in favor of the
motion.
BIDS
AWARDING OF BIDS
The following bids were opened and read at 1:30 p.m. on January 8, 2016, and presented
at this time for consideration and action.
TRANSMISSION LINE RETIREMENT
Donovan Construction $274,778.43
Highline Construction $ 95,485.00
Karian/Peterson Power Line Contracting $161,676.50
The L. E. Meyers Company $436,767.45
Motion was made by Hansen, seconded by Carruthers that the following low bid be
approved: Highline Construction for the Transmission Line Replacement in the amount of
$95,485.00; and, that, after reviewing the contract for the above bid, that the President of the
Board and/or Executive Vice President/General Manager be authorized to execute the approved
contract document. All members present voted in favor of the motion.
2017 DIRECTORY RATES
Motion was made by Harvey, seconded by Hansen to approve the 2017 Directory Rates
as presented by staff. All members present voted in favor of the motion.
EXECUTIVE SESSION
Motion was made by Harvey, seconded by Pitts to adjourn to an executive session for the
purpose of discussing competitive service offerings and review communication from legal
counsel about contractual matters. All members present voted in favor of the motion.
The Board reconvened in open session.
INTERFUND LOAN AMONGST UTILITY FUNDS
Motion was made by Harvey that the following Resolution No. 3 – 16 be approved.
RESOLUTION 3 – 16
RESOLUTION AUTHORIZING AN INTERFUND
LOAN AMONGST UTILITY FUNDS
WHEREAS the Brookings Municipal Utilities Board has determined that it is
beneficial for BMU to establish an interfund loan from the Electric Fund to the Telephone Fund
to aid in the retirement of debt from bonds issued in 1998, 1999, and 2000; and
WHEREAS the Brookings Municipal Utilities Board has determined that the
above mentioned interfund loan from the Electric Fund to the Telephone Fund shall be in the
amount of $5,500,000 and that the Telephone Fund shall repay the above mentioned interfund
loan from the Electric Fund over a term of four years and that the above mentioned interfund
loan shall bear an interest rate of 4.5% annually.
NOW, THEREFORE, BE IT RESOLVED by the Brookings Municipal Utilities
Board that the $5,500,000 interfund loan from the Electric Fund to the Telephone Fund in 2016
be approved with the provisions that the interfund loan, principal and interest, be repaid at the
rate of 4.5% interest to be due and payable in full before December 31, 2019, unless extended by
further resolution.
BE IT FURTHER RESOLVED that this Resolution 3-16 shall serve as the
promissory note documenting the interfund loan between the Electric Fund and the Telephone
Fund.
Adopted this 11th day of January, 2016.
ATTEST:
________________________________ _________________________________
Carol Pitts, Secretary Dave Peterson, President
The motion was seconded by Carruthers. On roll call Carruthers, Hansen, Harvey and
Peterson voted YES. Pitts voted NO. Motion carried.
BOND RETIREMENT AND DEFEASANCE
Motion was made by Hansen that the following Resolution No. 4 – 16 be approved.
RESOLUTION 4 – 16
RESOLUTION AUTHORIZING THE RETIREMENT OF BONDS
ISSUED IN 1998, 1999, and 2000
WHEREAS Brookings Municipal Utilities (BMU) has outstanding debt of
$10,715,000 from municipal tax exempt bonds issued in 1998, 1999, and 2000; and
WHEREAS the Brookings Municipal Utilities Board has determined that it is
beneficial to BMU to retire the above mentioned bonds issued in 1998, 1999, and 2000; and
WHEREAS the Brookings Municipal Utilities Board has determined that there
are sufficient resources within the BMU fund balances to retire the debt outstanding from the
above mentioned bonds issued in 1998, 1999, and 2000.
NOW, THEREFORE, BE IT RESOLVED by the Brookings Municipal Utilities
Board that the Board authorizes the Executive Vice President and General Manager to execute
the documents necessary to retire the outstanding debt from the municipal tax free bonds issued
in 1998, 1999, and 2000.
Adopted this 11th day of January, 2016.
ATTEST:
________________________________ _________________________________
Carol Pitts, Secretary Dave Peterson, President
The motion was seconded by Harvey. All members present voted in favor of the motion.
ADJOURNMENT
The meeting adjourned.
ATTEST:
______________________________ _____________________________
Carol Pitts, Secretary Dave Peterson, President