2.2. ERMUSR 04-09-2019 ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
March 12,2019
Members Present: Chair John Dietz;Vice Chair Al Nadeau; Commissioners Paul Bell,
Mary Stewart,and Matt Westgaard
ERMU Staff Present: Troy Adams,General Manager;
Theresa Slominski, Finance&Office Manager;
Mark Fuchs, Electric Superintendent;
Mike Tietz,Technical Services Superintendent;
Dave Ninow,Water Superintendent;
Tom Sagstetter, Conservation &Key Accounts Manager;
Michelle Canterbury, Executive Administrative Manager;
Tony Mauren,Communications&Administrative Coordinator;
Mike Langer, Lead Water Operator
Others Present: Cal Portner,City Administrator; Peter Beck,Attorney
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 Commissioner Oath of Office
Ms. Canterbury administered the oath of office for Utilities Commissioners John Dietz and Mary
Stewart.
1.4 Consider the Agenda
There were no additions or corrections to the agenda.
Moved by Commissioner Westgaard and seconded by Commissioner Bell to approve the March
12,2019,agenda. Motion carried 5-0.
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1.5 2018 Election of Officers
Per ERMU policy,the offices of the ERMU Commission include a Chair,Vice-Chair,and a Secretary.
The Commission elects the Chair and Vice-Chair to one-year terms each year during its regular
meeting in the month of March.
Moved by Commissioner Nadeau and seconded by Commissioner Stewart to reappoint John
Dietz as Chair. Motion carried 5-0.
Moved by Commissioner Westgaard and seconded by Bell to reappoint Al Nadeau as the Vice-
Chair. Motion carried 5-0.
1.6 2018 Committee Appointments
Per ERMU policy,the Commission shall appoint Committee members annually following the
Commission election of officers during the March Commission meeting.The Commission also
appoints Committee Chairs at that time. All appointments are for a one year term. ERMU
currently has three committees;the Wage and Benefits Committee;the Financial Reserves and
Investment Committee;and the Information Security Committee. After discussion the following
appointments were made.
Moved by Commissioner Westgaard and seconded by Commissioner Nadeau to reappoint John
Dietz and Mary Stewart to the Wage and Benefits Committee.Motion carried 5-0. Moved by
Commissioner Nadeau and seconded by Commissioner Westgaard to reappoint John Dietz as
Committee Chair. Motion carried 5-0.
Moved by Commissioner Bell and seconded by Commissioner Stewart to reappoint Matt
Westgaard and Al Nadeau to the Financial Reserves and Investment Committee. Motion carried
5-0. Moved by Commissioner Nadeau and seconded by Commissioner Bell to reappoint Matt
Westgaard as Committee Chair. Motion carried 5-0.
Moved by Commissioner Bell and seconded by Commissioner Westgaard to reappoint Mary
Stewart to the Information Security Committee. Motion carried 5-0.
Staff indicated that they were also looking for two volunteers from the Commission to be part of a
Field Services Facility Expansion Project Workgroup that will be involved in the design process for
the project.
Moved by Commissioner Westgaard and seconded by Commissioner Stewart to reappoint Al
Nadeau and Paul Bell to the Field Services Facility Expansion Project Workgroup. Motion carried
5-0.
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1.7 Introduction of New Employee
Mr. Fuchs introduced Lucas Hafften as the new Lead Bore Rig Operator.The Commission
welcomed the new employee.
1.8 Introduction of Employee Promotions
Mr.Adams introduced Dave Ninow and announced that he had been internally promoted to the
Water Superintendent position. Mr. Ninow shared a little bit about himself and his work
background.Staff stated that they were planning to backfill the water operator position and would
be posting for the position sometime next week.The Commission congratulated Mr. Ninow on his
promotion.
1.9 Recognition of Employee Achievements
Mr.Adams announced that Mr.Sagstetter and Mr.Sumstad recently graduated from Minnesota
Municipal Utilities Association (MMUA) Firstline Supervision training. Mr.Sagstetter and Mr.
Sumstad shared some highlights of the two year program.The Commission congratulated them
both on their achievement.
2.0 CONSENT AGENDA(Approved By One Motion)
Moved by Commissioner Stewart and seconded by Commissioner Nadeau to approve the
Consent Agenda as follows:
2.1 February 2019 Check Register
2.2 February 12,2019 Regular Meeting Minutes
2.3 February 12,2019 Closed Meeting Minutes
Motion carried 5-0.
3.0 OPEN FORUM
No one appeared for open forum.
4.0 POLICY&COMPLIANCE
5.0 BUSINESS ACTION
5.1 Financial Report—January 2019
Ms. Slominski presented the January 2019 financial report. For the electric department
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purchased power, Commissioner Stewart inquired as to whether there were any power cost
adjustments (PCA) factors. Ms. Slominski responded that the energy adjustment clause (EAC)
was a little more than they had budgeted for January. She also noted that the EAC for
February comes in significantly less than budgeted. Chair Dietz wanted to know if the revenue
comparisons from this year to last would be easier to analyze as we can now compare the
same billing time frames. Ms. Slominski stated from that perspective we should have good
data for comparison.
Moved by Commissioner Westgaard and seconded by Commissioner Stewart to receive and
file the January 2019 Financial Report. Motion carried 5-0.
5.2 Wage& Benefits Committee Update
At the November 2018 commission meeting,the Commission directed the Wage & Benefits
Committee (W&BC) to benchmark the management pay group and report back to the
Commission at the December 2018 meeting. Per the direction of the Commission, the W&BC
had requested proposals from three consultants.At February 12 W&BC meeting, the
Committee narrowed the list down to two consultants.
Mr. Adams stated that the W&BC had conducted interviews with the two consultants just
prior to the commission meeting. He shared that the interviews went well. Based on the
results of the interviews the committee consensus was to recommend contracting with
Current Compass for the amount of$6,000. Commissioner Westgaard inquired as to whether
all three bidders were similar in scope and price. Mr. Adams responded that they were, and
that ultimately the committee had chosen the one that had the most municipal experience
and was also the lowest priced.
Moved by Commissioner Nadeau and seconded by Commissioner Bell to approve
contracting for benchmarking services with Current Compass for the amount of$6,000.
Motion carried 5-0.
5.3 2018 Annual Report
Ms. Canterbury provided some background on how staff had traditionally produced and
distributed the annual report. She also went over the changes that staff had implemented to
allow for us to now distribute the report to all of our customers in a more timely way.
Ms. Canterbury presented the 2018 Annual Report which features our transition to Minnesota
Municipal Power Agency(MMPA) and their diverse energy portfolio. Ms. Canterbury noted that
Mr. Adams' opening statement of what brought about this change set the stage for the direction
of this year's annual report. She also acknowledged Mr. Mauren and his contributions to the
project and shared how he had worked with MMPA and Prime Advertising to put together the
finished report. Chair Dietz offered some suggestions on other topics staff may want to
include in future annual reports.
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Moved by Commissioner Westgaard and seconded by Commissioner Nadeau to receive and
file the 2018 Annual Report. Motion carried 5-0.
5.4 2018 Annual Reliability Report
Minnesota Rules Chapter 7826 Public Utilities Commission Electric Utility Standards cover
safety, reliability, service, and reporting requirements. Per 7826.0100(A), municipal utilities
are exempt from these requirements. However,the ERMU Commission adopted a number of
parts of this chapter as a Distribution Reliability Standard policy requiring annual reporting on
system reliability.
Mr.Tietz presented the APPA eReliability Tracker Annual Report for Elk River Municipal
Utilities. In 2018 ERMU's reliability numbers remain excellent. He shared that the reliability
index numbers reflect the condition of our robust electrical system as well as the superb
response time from our local line crews.They also reflect long term visioning on system
design and ongoing system maintenance. He noted that the favorable weather also had a
positive impact on the numbers. Mr.Tietz also touched on the cause of outages in 2018,
citing squirrels as the largest contributor. There was discussion on the best way to market our
outstanding reliability and what that messaging might be.
Moved by Commissioner Stewart and seconded by Commissioner Nadeau to receive and
file the APPA eReliability Tracker 2018 Annual Report for Elk River Municipal Utilities.
Motion carried 5-0.
6.0 BUSINESS DISCUSSION
6.1 Staff Updates
Mr. Ninow informed the Commission that there was a water main break on March 5 at the corner
of 190th and 191st Avenue.Staff worked with Valley-Rich to get the main repaired.The water was
off for roughly an hour and a half. He shared that this was the second break in this area in a pretty
short period of time.There was discussion.
Mr.Sagstetter highlighted from his staff report that the Minnesota Municipal Power Agency
(MMPA) Energy Education Events began in March.The next event will be held on March 25 at Twin
Lakes Elementary. He shared that the Commissioners are welcome to attend,and to let him know
in advance if they are interested.
6.2 American Public Power Association Legislative Rally Update
Mr.Adams presented his update as outlined in his memo. He highlighted and led discussion on
two key talking points:Support and Improve Tax—Exempt Financing,and Preserve Local Pole
Attachment Regulation. Commissioner Westgaard,who also attended the rally,shared that it was
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fast paced and a great learning experience. He also shared that it offered them the opportunity to
meet with freshmen legislators from Minnesota and educate them on the issues affecting utilities.
6.3 Future Planning
Chair Dietz announced the following:
a. Regular Commission Meeting—April 9, 2019
b. Special Commission Meeting—Annual Commissioner Orientation—April 9, 2019,
2:30—3:30 p.m.
c. 2019 Annual Governance Agenda
6.4 Other Business
Chair Dietz asked Mr. Portner where the city was at with the grant application for the Jackson
Street Water Tower. Mr. Portner responded. Mr.Adams added that 2020 marks the 100th
anniversary of the water tower and the water system and expressed an interest in doing
something to commemorate the anniversary.
7.0 ADJOURN REGULAR MEETING
Moved by Commissioner Westgaard and seconded by Commissioner Bell to adjourn the regular
meeting of the Elk River Municipal Utilities Commission at 4:03 p.m.Motion carried 5-0.
Minutes prepared by Michelle Canterbury.
John J. Dietz, ERMU Commission Chair
Tina Allard,City Clerk
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