07-11-2017 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
July 11,2017
Members Present: Chair John Dietz;Vice Chair Daryl Thompson;Commissioners Al Nadeau,
Mary Stewart,and Matt Westgaard
ERMU Staff Present: Troy Adams,General Manager;
Theresa Slominski,Finance and Office Manager;
Mark Fuchs,Electric Superintendent;
Mike Tietz,Technical Services Superintendent;
Eric Volk, Water Superintendent;
Tom Sagstetter,Conservation&Key Accounts Manager;
Michelle Canterbury,Executive Administrative Assistant
Others Present: Cal Portner,City Administrator;Peter Beck,Attorney;and Joni Astrup, Star News
Associate Editor
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.
Consider the Agenda
There were no additions or corrections to the agenda.
Moved by Commissioner Thompson and seconded by Commissioner Nadeau to approve the
July 11,2017,agenda. Motion carried 5-0.
1.3 Recognition of the 70th Anniversary of the Utilities Commission
Mr.Adams shared that on this day,seventy years ago,the council created through resolution the
Water,Light,Power and Building Commission which is now known as the Elk River Municipal
Utilities Commission. Mr.Adams stated that it would be nice to take a moment to recognize the
ERMU Commission as they celebrate their 70th anniversary. Mr.Adams shared some of the big
decisions that the Commission has been involved in over the years and how those have impacted the
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Regular Meeting of the Elk River Municipal Utilities Commission
July 11,2017
city. Chair Dietz read the resolution creating the Utilities Commission from the July 11, 1947 Elk
River Village Council meeting.Mr.Adams ended by saying that we spend a lot of time looking
forward and working on big things for the future,but this is a moment to take a look backwards and
appreciate all that the Commission has done. Staff gave the Commission a round of applause.
1.4 Introduction of New Employee
Mr. Volk introduced Katy Olson as the new Water Operator. The Commission welcomed the
new employee.
2.0 CONSENT AGENDA(Approved By One Motion)
Chair Dietz had a question on the renewal premium for LMCIT property/casual insurance. Staff
responded.
Moved by Commissioner Nadeau and seconded by Commissioner Stewart to approve the
Consent Agenda as follows:
2.1 June Check Register
2.2 June 13,2017 Regular Meeting Minutes
2.3 June 13,2017 Closed Meeting Minutes
2.4 Summary of General Manager Performance Review
2.5 ERMU Water Supply Plan
2.6 Renewal Premium for LMCIT Property/Casual Insurance
Motion carried 5-0.
3.0 OPEN FORUM
No one appeared for open forum.
4.0 POLICY&COMPLIANCE
4.1 Delegation to Management Policies
Mr. Adams presented for consideration the next two delegation to management policies that
consultant John Miner had developed: G.4d Customer Interests, and G.4e Core Customer
Services. Mr. Adams stated that staff had the opportunity to work through the two policies and
had vetted them with Attorney Beck.
Moved by Commissioner Westgaard and seconded by Commissioner Thompson to adopt
the proposed Delegation to Management Policies. Motion carried 5-0.
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Regular Meeting of the Elk River Municipal Utilities Commission
July 11,2017
4.2 Wage& Benefits Committee Update
The Wage &Benefits Committee met on June 30 regarding two organizational staffing issues:
the vacant Key Accounts Specialist position and the retirement announcement from the Lead
Electrical Technician. Mr. Adams provided a meeting recap to the Commission as outlined in
his memo.
Key Accounts Specialist—Mr. Adams shared that based on workload unknowns, it was the
recommendation of the W&BC to hold on filling the Key Accounts Specialist position at this
time, and to re-evaluate the needs and related skill-sets required after the implementation of
multi-billing cycles.
Lead Electrical Technician—Mr. Adams provided some background on how this position was
originally created, and shared that the W&BC has discussed the succession planning for this
position for the past three years identifying the potential for updating the position at the time of
retirement. W&BC staff representatives worked with the Technical Services Superintendent to
identify department and company skill sets needed and work load concerns relating to this
vacancy. Those discussions resulted in the consensus that the position should be changed to a
Distribution Engineer. The draft position description was developed by staff and presented to
the W&BC receiving consensus supporting the change. Mr. Adams outlined the financial
impact associated with the change in position. There was discussion on how staff would
advertise for the position.
Commissioner Westgaard asked for further clarification on the portion of the memo relating to
the proposed change and how that impacts ERMU's pay equity report. Staff responded.
Moved by Commissioner Nadeau and seconded by Commissioner Stewart to approve the
organization staffing change to replace the Lead Electrical Technician with the proposed
Distribution Engineer. Motion carried 5-0.
5.0 BUSINESS ACTION
5.1 Financial Report—May 2017
Ms. Slominski presented the May 2017 financial report. Chair Dietz stated that he is still
having a hard time correlating our electric sales to our purchase power bill as the sales are
always lagging a month behind the bill reflected. He expressed that it would make more sense
to have the appropriate income lined up with the appropriate expense for any given month.
There was discussion. Chair Dietz suggested that we consult with our auditors regarding this,
and explore the option of making an adjusting entry each month to offset the difference
between the month the wholesale power bill is reflected to the actual month the revenue is
recorded.
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Regular Meeting of the Elk River Municipal Utilities Commission
July 11,2017
Moved by Commissioner Stewart and seconded by Commissioner Nadeau to receive and
file the file May 2017 Financial Report. Motion carried 5-0.
5.2 Electric Vehicle Charging Station Update
Mr. Sagstetter presented his staff report. He shared that since the June 23 activation of the level
two charger in the public parking lot in downtown Elk River,we've had two customers that
have utilized the charger. To celebrate the roll out of the electric vehicle (EV) charging
program, ERMU is planning a ribbon cutting ceremony and grand opening scheduled for
September 13 from 6:00 to 8:00 p.m. at the site. The event, which coincides with National
Drive Electric Week, will offer members of the community the opportunity to stop by and
learn more about the technology,talk with EV owners, and drive electric vehicles. Mr.
Sagstetter shared a little bit about the marketing plan including a logo that was especially
designed for the program; a copy of the logo was distributed. There was discussion on the
status of the level three charger and its installation at the proposed site.
Staff proposed two hourly fees for the public electric vehicle charging station; the fee for the
first 3 hours at $1.00/hour, and after 3 hours increased to $2.50/hour. Both fees, if approved,
would be added to the 2017 Utilities Fee Schedule. Commissioner Thompson asked if these
fees were comparable with what others stations are charging. Staff responded that they were.
Moved by Commissioner Thompson and seconded by Commissioner Westgaard to
approve the 2017 Utilities Fee Schedule as amended to include hourly fees for public EV
charging. Motion carried 5-0.
5.3 Otsego Streetlights
Mr. Adams presented the staff report which outlined the proposed streetlight transfer. Mr.
Adams shared that the transfer would be contingent upon receiving an extension to the
requirement of ERMU having to relocate an overhead electric feeder along County Road 39 to
underground electric by 2018. He explained the complexities and concerns with having to
relocate the facilities and stressed the benefits to getting an extension.
Based on conversations with the Otsego City Engineer regarding the proposed terms of a
transfer, ERMU staff had worked to develop some terms. Mr. Adams presented the terms and
recommended the Commission approve them as presented, and give staff the authority to work
with legal counsel to develop an asset transfer agreement and a CSAH 39 overhead to
underground electric system relocation extension agreement.
Commissioner Thompson commented that this sounded like it was going to involve a great
deal of work and money to bring the streetlights up to our standards. Staff responded that a
supplemental transfer of funds for prorated and reduced aid to construction would be one of the
terms of the agreements. There was discussion.
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Regular Meeting of the Elk River Municipal Utilities Commission
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Commissioner Stewart asked who would be responsible for the costs associated with the
addition of future streetlights due to growth. Staff responded that typically the developer is the
one paying, and pointed out the street light installation fees listed on the ERMU fee schedule.
These fees would also apply to City of Otsego.
Moved by Commissioner Nadeau and seconded by Commissioner Stewart to approve the
proposed terms as described,and give staff authority to develop an asset transfer
agreement and CSAH 39 overhead to underground electric system relocation extension
agreement. Motion carried 5-0.
6.0 BUSINESS DISCUSSION
6.1 Staff Updates
Mr.Adams added that staff is working with a consultant to perform a cyber security assessment.As
part of that process,one of the things that had been recommended is developing an Information
Security Committee.Because of shared hardware and resources,this would likely be a joint
Committee between ERMU and the City. He anticipated bringing more information back to the
Commission as soon as next month.
Ms. Slominski shared that she had met with our health insurance broker and learned that we are
trending very low this year with claims. She was hopeful that we would have a more favorable
insurance renewal.There was brief discussion.
Mr. Tietz provided an update on locates.He explained that although they had a decrease in the
volume of tickets from the prior month,many of the tickets were for multiple locations.Chair Dietz
inquired as to who is responsible for removing the locate flags once the work has been completed.
Staff responded that it is typically the contractor's responsibility.
Mr.Volk recently attended the American Water Works Association(AWWA)National Conference
held in Philadelphia,PA.Chair Dietz asked Mr.Volk if he had had been elected for the position he
was running for. Mr.Volk stated that those results will be announced in September.
6.2 Future Planning
Chair Dietz announced the following:
a. Regular Commission Meeting—August 8, 2017
b. Minnesota Municipal Power Association Annual Meeting—July 25, 2017
c. Minnesota Municipal Power Association Shakopee Energy Park Grand Opening—July 27, 2017
As it was determined that only two commissioners would be attending the MMPA July 25 event,
and none would be attending the July 27 event, a notice of meeting quorum will not be posted.
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Regular Meeting of the Elk River Municipal Utilities Commission
July 11,2017
6.3 Other Business
There was no other business.
7.0 ADJOURN REGULAR MEETING
There being no further business,Chair Dietz adjourned the regular meeting at 4:16 p.m.
Minutes prepared by Michelle Canterbury.
.11 J. Di ,F' U ' •- y'on Chair
Tina Allard,City Clerk
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Regular Meeting of the Elk River Municipal Utilities Commission
July 11,2017