01-08-2019 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
January 8,2019
Members Present: Chair John Dietz;Vice Chair Al Nadeau;Commissioners Mary Stewart,
and Matt Westgaard
Present via Skype: Commissioner Paul Bell
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 Manager;
Jennie Nelson,Customer Service Manager;
Mike Langer, Lead Water Operator;
Tony Mauren, Communications&Administrative Coordinator
Others Present: None
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 Nadeau and seconded by Commissioner Stewart to approve the
January 8,2019,agenda. Motion carried 5-0.
1.4 Employee Recognition of Achievement
Mr.Adams announced that Ms.Slominski had recently graduated from the Minnesota Municipal
Utilities Association (MMUA) Leadership Academy. Mr.Adams provided some background on the
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January 8, 2019
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leadership program and how it was developed. Ms.Slominski shared a little bit about the
curriculum and the sessions she attended.She also shared the definition of a true champion leader
and an inspirational story that hit the point home.The commission congratulated Ms.Slominski on
her achievement.
2.0 CONSENT AGENDA(Approved By One Motion)
Moved by Commissioner Westgaard and seconded by Commissioner Nadeau to approve the
Consent Agenda as follows:
2.1 December Check Register
2.2 December 11,2018 Regular Meeting Minutes
2.3 Schedule of Rates
Motion carried 5-0.
3.0 OPEN FORUM
No one appeared for open forum.
4.0 POLICY&COMPLIANCE
4.1 Annual Review of Committee Charters
Mr. Adams shared that the annual review of the committee charters is an opportunity for the
commission to review the purpose for the committees and whether or not they are still
needed. It's also an opportunity for the commission to give direction to the committees. The
annual committee appointments will be made by the commission in March.
Mr. Adams stated that the commission currently has two commission-created committees:
the Wage & Benefits Committee, and the Financial Reserves & Investment Committee. The
commission discussed who was currently serving on those committees as well as the
Information Security Committee and the Field Services Expansion Project Workgroup.
Commission consensus was that the two commission-created committees are still required
and that no changes are needed.
4.2 Compliance Monitoring Report—Employee Safety Manual
Mr. Adams provided some background on Governance Policy G.4f Employee Interests which
includes a requirement of not operating without an Employee Safety Manual. Mr. Adams
reported that ERMU is in compliance with this requirement and uses the American Public
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January 8, 2019
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Power Association (APPA) Safety Manual 16th Edition. He explained that this manual is issued
to or made available to all employees, and that employees sign off on a document
acknowledging receipt of the manual. There was discussion. Mr. Adams noted that the ERMU
safety program also includes additional safety policies and procedures, and required safety
trainings. The commission had a few questions on CPR training and if it was required for all
employees. Staff responded.
5.0 BUSINESS ACTION
5.1 Financial Report—November 2018
Ms. Slominski presented the November 2018 financial report. For the Maintenance Expense
line item in the Electric Statement, Chair Dietz asked for further clarification on why it was so
much higher this year compared to last, and directed staff to provide an analysis of what the
contributing factors were to the $265,000 variance. Staff stated they would do so.
Ms. Slominski addressed a question that Commissioner Stewart had alerted her to in advance
relating to the Other Operating Revenue AC line item in the detailed Electric Statement; it
reflected a budgeted credit of$13,500, and an actual year-to date credit of$19,140. Her
question was if staff knew that the AC program was in moratorium, why there was such a
difference in the budgeted amount and the actual year-to-date amount. Ms. Slominski stated
that it had to do with the customers that recently transferred over from Connexus. She
explained that those who were on an existing AC program with Connexus were grandfathered
into ERMU's program until the sunset date, and that we hadn't adjusted the budget for that.
Commissioner Stewart made fellow commissioners aware of a recommendation Ms.
Slominski had made to her regarding specific questions she has that may require some time
to research an answer. Ms. Slominski had suggested emailing those questions prior to the
commission meeting to allow staff time to research if necessary, and then address those at
the meeting when the agenda item is presented. Commissioner Stewart encouraged the
other commissioners to do the same.
Chair Dietz had a question on the water connection fees. Mr. Volk responded.
Chair Dietz also had a question on the Deposit Policy and if the customers transferring over
from Connexus were required to pay a deposit. Staff responded. There was discussion.
Moved by Commissioner Nadeau and seconded by Commissioner Stewart to receive and
file the November 2018 Financial Report. Motion carried 5-0.
5.2 Wage& Benefits Committee Update
At the December 11, 2018 commission meeting,the Wage & Benefits Committee (W&BC)
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recommended contracting with a third party to perform the management group
benchmarking. The commission supported the committee's request and directed staff to
research potential consultants and report back to the commission in January.
Mr. Adams stated that staff has identified three potential consultants to perform the work
and has conducted phone interviews to discuss the scope of the project. Staff is currently
working on a refined scope and a request for proposal to send out to the consultants. He
shared that once we receive the written proposals, the intent is to have the W&BC review
them and make a recommendation to the commission in February or March. Commissioner
Stewart and Westgaard recommended the use of a non-disclosure agreement with the
consultant due to the nature of the data they would be working with. Chair Dietz asked if
there was money in the budget to accommodate for the consulting work. Ms. Slominski
responded that there was.
6.0 BUSINESS DISCUSSION
6.1 Staff Updates
Mr.Adams informed the commission that Connexus Energy has published a 0%rate increase for
2019.There was discussion on ERMU's rates. Mr.Adams announced that the Minnesota Municipal
Utilities Association (MMUA) Legislative Rally is being held on Tuesday,January 29, and extended
an invitation to the commission members to attend. Mr.Adams explained that with all the
changes in office, how critical our attendance is at both the local and national rally.There was
discussion on what the key talking points will be for the utility industry and how the flip in the
house or representatives may impact those.
Ms. Slominski noted in her staff report that the bullet proof glass at the front counter was installed
on December 14. Chair Dietz commented that it looked very nice and asked what the reaction has
been from customers. Staff responded that for the most part it has been positive.
Mr. Fuchs announced Mike Thiry will be retiring on January 25.To celebrate his 34+years of
service,a retirement gathering will be held on Thursday,January 24 from 2:00 to 3:00 p.m. in the
ERMU office lunchroom. Mr. Fuchs invited the commission and shared that an email invite will be
sent out some time next week.A quorum notice will be posted. Mr. Fuchs also provided an update
on the Lead Bore Rig position and stated at the person who had accepted our job offer and was to
start at the beginning of 2019 has rescinded.Staff reposted the position last week.
In his staff report, Mr.Tietz reported that the locating department had a total of 136 locate tickets
in the month of December. Chair Dietz inquired as to what the locators do when there aren't as
many locates throughout the winter. Mr.Tietz explained that one of the locators primarily does all
the locating while the other locator has been concentrating on collecting GPS points and learning
how to enter them into the ESRI ArcView GIS system. Chair Dietz had a few questions on the
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monthly engine run and where things stood with us being in compliance with the Reciprocating
Internal Combustion Engines(RICE) Rule. Staff responded.
Chair Dietz asked Mr.Volk how things were going with being Section Chair of the Minnesota
American Water Works Association (MN AWWA). Mr.Volk stated that it has been very busy and
also shared a little bit about what the duties entail.
Mr. Sagstetter announced that there are some openings on the Energy City Commission in
addition to him being up for reappointment. Mr.Sagstetter also shared that the refurbished
replacement for Engine#1 was delivered to the Landfill Gas Plant this morning, and should be up
and running sometime today.There was discussion. Mr.Sagstetter informed the commission that
staff had just met with representatives from Great River Energy(GRE)to come up with a list of
some revenue class metering components that GRE no longer needs. ERMU staff is now tasked
with determining if the components are something we may be interested in purchasing from
them.
Mr. Sagstetter also highlighted from his staff report the Standby Rate that staff has begun working
on with Dave Berg Consulting, and the national award that Prime Advertising& Design received for
the EV/ER wrap that they designed for our electric vehicle.
6.2 Future Planning
Chair Dietz announced the following:
a. Regular Commission Meeting— February 12, 2019
b. 2019 Governance Agenda
6.3 Other Business
There was no other business.
7.0 ADJOURN REGULAR MEETING
Moved by Commissioner Westgaard and seconded by Commissioner Nadeau to adjourn the
regular meeting of the Elk River Municipal Utilities Commission at 4:31 p.m. Motion carried 5-0.
inutes prepared by Michelle Canterbury.
Jo n J. Di t ERM mi sion Chair
Tina Allard, City Clerk
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January 8, 2019
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