2.2 ERMUSR 03-13-2018 ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
February 13,2018
Members Present: Chair John Dietz;Vice Chair Daryl Thompson; Commissioners Mary Stewart,
and Matt Westgaard
Members Absent: Al Nadeau
ERMU Staff Present: Troy Adams,General Manager;
Theresa Slominski,Finance and Office Manager;
Mike Tietz,Technical Services Superintendent;
Eric Volk,Water Superintendent;
Tom Sagstetter, Conservation&Key Accounts Manager;
Michelle Canterbury,Executive Administrative Assistant;
Tom Geiser,Assistant Electric Superintendent;
Mike Langer,Lead Water Operator
Others Present: Cal Portner,City Administrator;Peter Beck,Attorney;Amanda Bendar, City
Environmental Coordinator
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 Stewart to approve the
February 13,2018,agenda. Motion carried 4-0.
2.0 CONSENT AGENDA(Approved By One Motion)
Chair Dietz had a question on the check issued to Carr's Tree Service listed in the check register.
Staff responded that it was for additional tree trimming we contracted out to help get us caught up.
Staff noted that this was a budgeted item.
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Moved by Commissioner Westgaard and seconded by Commissioner Thompson to approve
the Consent Agenda as follows:
2.1 January Check Register
2.2 January 9,2018 Regular Meeting Minutes
2.3 Demand All Electric Service Tariff
Motion carried 4-0.
3.0 OPEN FORUM
No one appeared for open forum.
4.0 POLICY& COMPLIANCE
4.1 Distributed Generation and Net Metering Policy
Mr. Sagstetter presented the proposed Distributed Generation and Net Metering Policy; Rules;
and Cogeneration and Small Power Production Tariff. He explained that the policy, rules and
tariff being presented were created from models provided by the Minnesota Municipal Utilities
Association(MMUA) and Minnesota Municipal Power Agency(MMPA) in an effort to create
a standard that will allow for consistency for all municipal utilities throughout state. Mr.
Sagstetter went over the importance of adopting the proposed documents and the ramifications
of not doing so. The Commission had a few questions. Staff responded. Commissioner Stewart
noted that one of the fields that needed to be replaced with the name of the commission or
board on page 46, section 10 governing body, had not been done. Staff stated they would make
that correction.
Moved by Commissioner Stewart and seconded by Commissioner Thompson to adopt by
Resolution No. 18-1 the Distributed Generation and Net Metering Policy; and the Rules
Governing the Interconnection of Cogeneration and Small Power Production Facilities.
Motion carried 4-0.
Moved by Commissioner Westgard and seconded by Commissioner Stewart to adopt by
Resolution No. 18-2 the Cogeneration and Small Power Production Tariff. Motion
carried 4-0.
5.0 BUSINESS ACTION
5.1 Financial Report—December 2017
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Ms. Slominski presented the December 2017 financial report. Chair Dietz commented that
when comparing the year-to-date actual amounts to the budgeted amounts, some of the line
items are real close and others are way off He asked how we determine the amounts. Ms.
Slominski shared that the largest resource is the prior year's performance. She also explained
some of the other things that are taken into consideration when determining the budgeted
amounts. Chair Dietz had a few other questions on the financials. Staff responded.
Moved by Commissioner Stewart and seconded by Commissioner Westgaard to receive
and file the December 2017 Financial Report. Motion carried 4-0.
5.2 2017 Annual Safety Report
In 2017, ERMU only submitted one report that qualifies under this annual safety reporting
requirement; the OSHA Form 300A, which is a summary of work related first report of injuries
and illnesses. Mr. Adams presented the OSHA Form 300A that had been filed;there were four
recordable cases which resulted in 0 days away from work. Commissioner Westgaard asked if
staff tracked the experience modification rate (EMR), and if so what the rate was. Ms.
Slominski responded that the EMR is tracked and that she would pull that information together
to include in her staff update next month.
Moved by Commissioner Thompson and seconded by Commissioner Stewart to receive
and file the 2017 Annual Safety Report. Motion carried 4-0.
5.3 2018 Bank Signatories
Ms. Slominski shared that with the term of Commissioner Thompson expiring, and in order to
have the smoothest transition of signors, she would like to determine the replacement check
signor from the existing current commissioners and have the new signatures on file with the
bank and another stamp made before the new commissioner starts in March. After discussion,
Commission consensus was to appoint John Dietz, Al Nadeau and Mary Stewart.
Moved by Commissioner Thompson and seconded by Commissioner Westgaard to adopt
by Resolution No. 18-3 the following bank signatories for 2018; John Dietz,Al Nadeau,
and Mary Stewart. Motion carried 4-0.
5.4 2017 Fourth Quarter Delinquent Items
Ms. Slominski presented the delinquent items for the fourth quarter which included a
delinquent amounts listing report totaling$10,524.96 for all services. She also presented the
delinquent items comparisons for 2016/2017, identifying the categories and running totals. Ms.
Slominski pointed out that the amount for the fourth quarter write-offs of$2,272.12 included
$895.42 in revenue recapture items that had met the six year maximum amount of time they
could be collected on. There was discussion. Ms. Slominski shared that our totals for the year
for collections and write-offs are well below the national average, at .00659%. The
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Commission commented on the low percentage of write-offs and gave kudos to all the staff
involved in the collection process.
Moved by Commissioner Westgaard and seconded by Commissioner Stewart to approve
the 2017 Fourth Quarter Delinquent Items. Motion carried 4-0.
6.0 BUSINESS DISCUSSION
Chair Dietz distributed an article from the Star Tribune regarding how the new federal tax cuts could
change utility rates.He reached out to staff and legal counsel to see if this was something that would
affect municipals.As ERMU doesn't pay federal corporate income tax,Attorney Beck didn't think
this was something that would impact us.If something changes with this,staff will circle back with
the Commission to keep them informed.
6.1 Staff Updates
Mr.Adams reminded the Commission about the upcoming Minnesota Municipal Utilities
Association(MMUA)Legislative Conference being held April 3-4,downtown St.Paul,and
provided details on who to let know if they were interested in attending.
Mr.Adams indicated in his staff report that he had completed the annual performance evaluations
for his direct reports. Chair Dietz asked for further clarification on who is responsible for doing the
other evaluations and the timing of that. Staff responded.
Chair Dietz asked what the status was of the Inventory and Procurement Foreperson position. Mr.
Adams shared that an offer has been made,and the person has accepted;we're looking at a start date
of about two weeks out.
Ms. Slominski provided an update in her staff report regarding the multi-cycled billing process and
how things were going with that.There was discussion on the frustrations some of the customers
were having and how they were voicing their concerns; including comments posted on Facebook.
Chair Dietz commended Ms.Nelson for reaching out off-line to those customers voicing their
concerns.
Mr.Tietz shared that the backup computer that had been recently added for meter reads was put into
use today due to an issue with the main computer.He explained that having this backup system in
place allowed them to perform the meter reads on time for the upcoming billing. There was
discussion on how the time period between meter reads and billings has been drastically reduced
due to the multi-cycled billing process and the benefits of that.
Mr.Volk announced that the next meeting with Kodet Architectural has been scheduled for
February 21 at 9:00 a.m.for the Field Services Expansion Project. Mr.Volk noted that with the exit
of Commissioner Thompson, staff is looking for another Commissioner to take his place in the
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workgroup. After discussion,consensus was to wait until March when we have the new
Commissioner in place to see who would be interested in being part of the workgroup.
6.2 Landfill Gas Plant to Electric Generation Facility Performance for 2017
Mr. Sagstetter provided an overview on the landfill gas plant to electric generation facility
performance for 2017. Based on operational efficiency and overall performance, Sherburne County
received a bonus payment of$25,000; and Waste Management received none based on the
delivered capacity factor falling below the 95%threshold.
Chair Dietz asked what will happen with this contract when we switch wholesale providers. Staff
shared that based on aligned goals and willingness from all parties,there has been good discussion
between ERMU,Great River Energy(GRE)and MMPA to reach a resolution before the October 1,
2018 transfer date. Commissioner Stewart inquired if the$25,000 bonus payment to Sherburne
County was accrued in 2017. Ms. Slominski responded that it had been.
6.3 Electric Vehicle Suitability Assessment Presentation
Mr. Sagstetter presented the EV Suitability Assessment Presentation from FleetCarma. The
Commission had a few questions. Staff responded. He also went over the recommendations which
included the purchase of a 2017 Chevy Bolt to be added to the utilities fleet. Staff indicated that the
purchase of an electric hybrid vehicle had been included in this year's budget as an option to replace
one of the trucks that would be retiring. Mr. Sagstetter shared that the Chevy Bolt would be
purchased through an organization in Hibbing who had the state bid contract for this particular
vehicle.
There was some discussion on the direction the city would be going based on the assessment. Ms.
Bednar shared that she would be giving this presentation to the City Council at their next scheduled
meeting.
6.4 Future Planning
Chair Dietz announced the following:
a. Regular Commission Meeting—March 13, 2018
Chair Dietz announced that this was Commissioner Thompson's last meeting and thanked him
on behalf of the Commission for his nine years of service. Commissioner Thompson stated
that over the last nine years there have been some very productive things that have gone on and
that he was glad to have been a part of that. He ended by saying that it had been an honor
working with everyone.
6.5 Other Business
There was no other business.
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7.0 ADJOURN REGULAR MEETING
Moved by Commissioner Thompson and seconded by Commissioner Stewart to adjourn the
regular meeting of the Elk River Municipal Utilities Commission at 4:35 p.m.Motion carried
4-0.
Minutes prepared by Michelle Canterbury.
John J.Dietz,ERMU Commission Chair
Tina Allard,City Clerk
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