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2.2 ERMUSR 06-13-2017 ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION HELD AT UTILITIES CONFERENCE ROOM May 9,2017 Members Present: Chair John Dietz;Vice Chair Daryl Thompson; Commissioners Al Nadeau, Mary Stewart,and Matt Westgaard ERMU Staff Present: Theresa Slominski,Finance and Office Manager; Eric Volk,Water Superintendent; Tom Sagstetter, Conservation&Key Accounts Manager; Michelle Canterbury,Executive Administrative Assistant; Jennie Nelson, Customer Service Manager; Tom Geiser,Assistant Electric Superintendent Others Present: Cal Portner,City Administrator;Peter Beck,Attorney;Robyn Hoerr, Groundwater Specialist with Minnesota Rural Water 1.0 GOVERNANCE 1.1 Call Meeting to Order The regular meeting of the Utilities Commission was called to order at 3:30 p.m.by Chair Dietz. 1.2 Pledge of Allegiance The Pledge of Allegiance was recited. 1.3 Consider the Agenda There were no additions or corrections to the agenda. Moved by Commissioner Thompson and seconded by Commissioner Nadeau to approve the May 9,2017,agenda. Motion carried 5-0. 1.4 MN Rural Water Association/MN Department of Health Source Water Protection Award Ms.Robyn Hoerr, Groundwater Specialist with Minnesota Rural Water Association,was at the meeting and provided some background on the Minnesota Rural Water Association/Minnesota Department of Health Source Water Drinking Award. She shared that although ERMU did not win the award,ERMU's application was very strong and came in with the second largest amount of votes. Ms.Hoerr stated that ERMU was deserving of an honorable mention for all of their efforts they have made on behalf of drinking water protection,and presented Water Superintendent Volk Page 1 Regular Meeting of the Elk River Municipal Utilities Commission May 9,2017 23 with a certificate of recognition signed by Governor Mark Dayton. The certificate recognized ERMU for their exemplary commitment to protecting the source of the community's drinking water. 1.5 Introduction of New Employee Ms. Canterbury introduced Mike Tietz the new Technical Services Superintendent. The Commission welcomed the new employee. 2.0 CONSENT AGENDA(Approved By One Motion) Moved by Commissioner Westgaard and seconded by Commissioner Thompson to approve the Consent Agenda as follows: 2.1 April Check Register 2.2 April 11,2017 Regular Meeting Minutes 2.3 Resolution Electing Not to Waive Statutory Tort Limits for Liability Insurance 2.4 Hold Harmless Agreement—City of Elk River 2.5 License Agreement—Housing and Redevelopment Authority of the City of Elk River 2.6 Revised Governance Policies 2.7 Non-Demand All Electric Service Tariff Motion carried 5-0. 3.0 OPEN FORUM No one appeared for open forum. 4.0 POLICY&COMPLIANCE 4.1 2017 First Quarter Performance Metrics and Incentive Compensation Update Ms. Slominski presented the first quarter performance metrics and incentive policy results and pointed out some of the changes that had been made to the scorecard from the prior year. All of the categories were on track with the exception of the newly added water loss sub-category. Mr. Volk spoke to the efficiencies that have been implemented towards water loss and noted that although we are a little over our goal, we are trending in the right direction. There was discussion. Commissioner Stewart asked if the incentive compensation payment is accrued during the same year as the performance being measured. Ms. Slominski responded that it was. Commissioner Westgaard inquired as to how often the Commission reviews the performance metrics and scorecard. Chair Dietz stated that it's done on an annual basis, and any changes to the criteria would need to be approved by December of the current year, for implementation the following year. Page 2 Regular Meeting of the Elk River Municipal Utilities Commission May 9,2017 24 5.0 BUSINESS ACTION 5.1 Financial Report—March 2017 Ms. Slominski presented the March 2017 financial report. Chair Dietz commented that the electric department didn't have a very good month. Ms. Slominski noted that if it wasn't for the PCA refund to customers of$245,799,which reduced the total revenue billed,we would have had a net profit for the month. The Commission inquired as to whether we had received any PCA charges in 2017. Staff responded that we had received two substantial ones. For the water department, Commissioner Stewart had some questions on how the developer contribution is booked and whether the asset is depreciated. Staff responded. There was brief discussion on the 4%payment in lieu of taxes to the City of Elk River. Moved by Commissioner Nadeau and seconded by Commissioner Stewart to approve the March 2017 Financial Report. Motion carried 5-0. 5.2 2017 First Quarter Delinquent Items Ms. Slominski presented the delinquent items for the first quarter which included a delinquent amounts listing report totaling$5,739.46 for all services. She also presented the delinquent items comparisons for 2016/2017, identifying the categories and running totals. The first quarter write-offs reflected a credit of$18.07 due to collections on amounts previously written off. Ms. Slominski shared that our totals for the year for collections and write-offs are well below the national average, at .000146%. The Commission had a few questions. Staff responded. Moved by Commissioner Thompson and seconded by Commissioner Westgaard to approve the First Quarter Delinquent Amounts Listing. Motion carried 5-0. 5.3 2016 Annual Report Mr. Sagstetter presented the 2016 Annual Report. The report highlighted organizational activities, statistics, and messaging. He noted that besides documenting Elk River Municipal Utilities history, it also serves as a good marketing tool to be used with economic development. The Commission commented on how nice the annual report had turned out. Moved by Commissioner Stewart and seconded by Commissioner Nadeau to receive and file the 2016 Annual Report. Motion carried 5-0. 5.4 Wage and Benefits Committee Update and Locator Position Ms. Slominski provided the update on the Wage &Benefits Committee (W&BC) action items Page 3 Regular Meeting of the Elk River Municipal Utilities Commission May 9,2017 25 approved by the Commission in April. She also shared that one of the additional items that was discussed was ERMU's locating needs and how increasing the Meter Reader position from part time to full time would help free up other labor resources to help out temporarily. At the last Commission meeting, it was the recommendation of the W&BC to wait to see how this worked out. Staff shared that after just one month, it has become clear that the locating workload is too much for just one full time locator and the backup labor resources from other departments. Staff requested that a second locator position be added. Ms. Slominski went over the financial impact of the unbudgeted expense and how it could be funded. Chair Dietz noted that at one time ERMU had two full time locators. Ms. Slominski confirmed, and shared that during the recession one of the locators had applied for an internal promotion and that the second locator position was never backfilled. There was discussion. Moved by Commissioner Nadeau and seconded by Commissioner Stewart to approve effective immediately the hiring of a second locator. Motion carried 5-0. 6.0 BUSINESS DISCUSSION 6.1 Staff Updates Mr.Portner spoke to the updated Board/Commission Attendance Policy that was referenced in Mr. Adams' staff report.Attorney Beck informed the Commission that in the course of rewriting the by- laws,it appears unclear as to whether the Board/Commission Attendance Policy can be applied to the Utilities Commission as it has a separate statutory authority and provisions on how Commissioners are appointed. Attorney Beck stated that he would look into it further and have an answer by the next Commission meeting. Ms. Slominski provided an update on the recent round of shut-offs. She shared that we had some unwanted excitement with one customer which a call to the police department quickly helped remedy. She expressed ERMU's gratefulness for the over-the-top support we receive from the police department on a regular basis. Ms. Slominski had indicated in her staff report that we currently have three signatories on our bank account: John Dietz,Daryl Thompson,and Alan Nadeau;the three pre-existing Commissioners. Given that we now have five Commissioners, she posed the question on whether we should have all five listed as signers on the bank account. Ms. Slominski explained that we currently require two signatures on every check, and went over the process of how that is accomplished.After discussion Commission consensus was to continue to have just three Commission bank signatories which would be reviewed and designated on an annual basis. Commissioner Stewart inquired as to whether every single check was manually signature stamped. Staff stated that one signature was hard coded into the system and that as part of our internal controls,a second manually stamped signature is required.There was further discussion. Mr.Volk shared that staff had met with Kodet Architectural on May 3 concerning the field services expansion. He provided an update to the Commission on the meeting.As we have now determined Page 4 Regular Meeting of the Elk River Municipal Utilities Commission May 9,2017 26 a basic footprint of the plan, staff can move forward on the site prep work as time permits. There was discussion on the timing of the project and the two rental properties located north of the site. Chair Dietz asked what the status was on the home that ERMU owns at 1437 Main Street. Mr. Volk responded that now that the asbestos has been removed,the Elk River Fire Department (ERFD)and Elk River Police Department(ERPD)will be conducting training in the house until it is burned by the ERFD on June 24. Mr. Sagstetter provided an update on the electric vehicle charging stations.He shared that the conduit had just been put in for the level two charging station to be located in the HRA parking lot downtown. One of the next steps will be adding clear signage indicating that the two parking spaces are reserved for EV charging only. Commissioner Thompson inquired as to how the designated spots for charging would be monitored and enforced. Attorney Beck stated that if it becomes a problem,ERMU would have the option of towing the vehicle. 6.2 Future Planning There was no future planning. 6.3 Other Business There was no other business. 7.0 ADJORN REGULAR MEETING Moved by Commissioner Westgaard and seconded by Commissioner Stewart to adjourn the regular meeting of the Elk River Municipal Utilities Commission at 4:20 p.m.Motion carried 5-0. Minutes prepared by Michelle Canterbury. John J.Dietz,ERMU Commission Chair Tina Allard,City Clerk Page 5 Regular Meeting of the Elk River Municipal Utilities Commission May 9,2017 27