June 28, 2011 Minutes (Draft Circulated (6/30/11)

DRAFT/UNAPPROVED MINUTES

SOUTH DAKOTA ONE CALL NOTIFICATION BOARD MEETING
JUNE 28, 2011, 10:30 AM Central Time

Chairman Kurt Pfeifle opened the South Dakota One Call Notification Board Conference Call with the Call to Order and Roll Call at 10:30 AM, Central Daylight Savings Time.

Board Members in attendance: Kurt Pfeifle, Mid-Dakota Rural Water System, Chairman; Bleau LaFave, Northwestern Energy; Fay Jandreau, Midstate Communications; Todd Chambers, Watertown Municipal Utilities; Doug Larson, Northern Border Pipeline; Ed Anderson, SD Rural Electric Association; Kevin Kouba, Otter Tail Power Co; Executive Director: Larry Janes.  Board Members unavailable were: Erin Hayes, Midcontinent Communications, Vice Chairman; Eugene Solseth, Hills Septic Service; Dan Kaiser, CenturyLink; Terry Larson, Heavy Constructors; and Legal Counsel:  Kara Semmler.  There were no other attendees.

A motion was made by Todd Chambers and seconded by Fay Jandreau to approve the One Call Notification Board Minutes from the May 18, 2011 One Call Board Meeting.  Motion carried unanimously by roll call vote. 

The financial summary including May 2011 expenditure details were reviewed.  The 2012 Fiscal Year Budget was reviewed and action deferred pending additional discussion items of the Agenda.  The budget was later amended to reflect a change in Executive Director Resource Costs, and brought to a vote of approval by a motion made by Kevin Kouba.  Seconded by Todd Chambers.  Motion carried unanimously by roll call vote.  

The budget will be reviewed again once the executive director has costs available for new insurance requirements (discussed below).  Discussion was held regarding the amount of emergency funds to hold in reserve.  For now it will remain at approximately 15% of total Fiscal Year expenditures.

The executive director mentioned that the Policy Committee met via conference call after the last Board Meeting to review changes in the Board Policy document suggested at that meeting.  Todd Chambers suggested that the emergency fund  percentage of 15% be placed in the document.  Ed Anderson suggested that we also place wording around why the emergency fund is necessary and under what circumstances those funds might be used.  Possible uses would be if a circumstance occurred where the call center was to go out of business, if the Board elects not to raise fees, or winter slow times when expenses remain high, but revenues are low.

The executive director was asked at the last Board meeting to investigate the cost of a performance bond.  He mentioned that Craig Ambach, Office of Risk Management, was contacted to determine if the One Call Board, because it is an agency of state government, is covered under any state insurance plans, and whether a performance bond was necessary.  Mr. Ambach decided to meet with Kara Semmler, PUC Legal Counsel and Cindy Kemnitz, PUC Finance Manager to discuss under what circumstances the Board, Executive Director, and One Call Vendor would need insurance.  The determination was made that the South Dakota One Call Board and its members are protected through the State of South Dakota “People’s Fund,” managed by Mr. Ambach’s office.  State Agencies are exempt from liability.  The Emergency Operating Funds are not self-insurance money, but are “Emergency Operating Funds” to be used as an operating reserve, if revenue falls or if it has an unexpected operating expense.  Mr. Ambach does not feel that a Performance Bond is necessary, because its risk exposure has been significantly reduced by members depositing payments to SD One Call directly into the State Treasury account through First Premier Bank, either electronically or to a LockBox accessed by the Bank.  The executive director needs to obtain Errors and Omissions insurance, and Fidelity Bond Insurance in the amount of $100,000 to cover financially dishonest acts,  auto insurance with a minimum limit of $500,000, as well as the current General Liability Insurance now held.  The One Call Vendor, KorPartners needs to provide proof of insurance and hold Errors and Omissions Insurance, with “Board, the State, it’s officers, employees or members” and the State of SD listed as additionally insured.

A Joint Powers of Agreement between the South Dakota One Call Board and First District Association of Local Governments was presented and discussed.  The previous contract was based on a calendar year, which caused confusion when discussing the annual budget.  The Joint Powers of Agreement will be based on the same Fiscal Year as the Board, July 1st through June 30th.  Todd Chambers made a motion to accept the Joint Powers Agreement.  Doug Larson seconded.  Motion carried unanimously by roll call vote. 

The executive director presented the Complaint, Response from Belair Excavating, and the Enforcement Panel Recommendation regarding OC11-001Watertown Municipal Utilities against Belair Excavating.  The Recommendation made by the Panel assessed a penalty of five thousand dollars ($5,000) with four thousand dollars ($4,000) suspended, provided there are no further violations within 12 months of the date of the final Order, and if the penalty is paid within 30 days of notification.   A motion to approve the Enforcement Panel Recommendation was made by Doug Larson.  Seconded by Kevin Kouba.  Motion carried unanimously by roll call vote, with the exception of Todd Chambers, who abstained.

The executive director asked if the Board would consider the approval of a recently purchased I-Phone, accessories, and the increase in monthly charges.  Fay Jandreau made a motion to approve.  Todd Chambers seconded.  Motion carried unanimously by roll call vote. 

Lee Marrs, Texas 811, had requested at the May 18, 2011 meeting of the South Dakota One Call Board if it would consider explaining and clarifying the start times on Emergency tickets and place place that in the minutes of the next Board Meeting:

Todd Chambers made a motion to direct Texas811 to utilize the established ticket “start time” for an Emergency ticket that is mandated by SDCL 47-7A (sections 1 – 34 inclusive) and further described in the Administrative Rules 20:25:03:10 (1).  The ticket start time should reflect the statutory time allowed for operator response to the locate request.  Specifically, the statute reads:  “The Operator shall respond as soon as possible but not longer than two hours from the notification time during the business day and not longer than four hours from the notification time outside of the business day or by the start time on the ticket, whichever is later”.   Doug Larson seconded.  Motion carried unanimously by roll call vote. 

There being no further business Fay Jandreau made a motion to adjourn.  Doug Larson seconded.  Motion carried unanimously by roll call vote.

Materials presented at this meeting are available by contacting the Executive Director in writing at exedir@sdonecall.com or by calling (605) 339-0529.