05-14-2019 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
May 14,2019
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
Others Present: Peter Beck,Attorney;and Elk River High School Students
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 Westgaard and seconded by Commissioner Nadeau to approve the
May 14,2019,agenda. Motion carried 5-0.
1.4 Recognition of Employee Promotion
It was announced that Mitch Girtz had been internally promoted to the Lead Lineworker
position. As Mr. Girtz was unable to attend the meeting, Mr. Adams suggested formally
recognizing him at next month's meeting.
Elk River Municipal Utilities Commission Meeting Minutes
May 14, 2019
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1.5 Recognition of Employee Achievement
Mr. Adams announced that Mr. Tietz had recently graduated from Minnesota Municipal
Utilities Association (MMUA) Firstline Supervision training. Mr.Tietz shared some highlights
of the two year program and thanked the Commission for allowing him the opportunity to
attend. The Commission congratulated him on his achievement.
2.0 CONSENT AGENDA(Approved By One Motion)
Moved by Commissioner Nadeau and seconded by Commissioner Bell to approve the
Consent Agenda as follows:
2.1 April 2019 Check Register
2.2 April 9,2019 Regular Meeting Minutes
2.3 April 9,2019 Special Meeting Minutes
2.4 2019 First Quarter Performance Metrics Scorecard Statistics
2.5 Elk River Municipal Utilities/Connexus Energy—Joint Request for Minnesota Public
Utilities Commission Modification of Parties'Electric Service Territory Boundary
2.6 2018 Consumer Confidence Report
2.7 Conflicts of Interest Policy
2.8 Distributed Energy Resources and Net Metering Policy, Rules,and Tariff
Motion carried 5-0.
3.0 OPEN FORUM
No one appeared for open forum.
4.0 POLICY&COMPLIANCE
4.1 Communications Policy
Ms. Canterbury presented the Communications Policy. She shared the purpose of the
policy and the guidelines that had been established for official ERMU external
communications including: media relations, and electronic communication platforms such
as websites and social media sites. Speaking on behalf of ERMU and guidelines for
employees to consider when personally communicating with the public is also addressed
in the policy.
Commissioner Stewart had a question on whether our attorney had reviewed the policy.
Staff responded that they had consulted with Campbell Knutson. Commissioner
Westgaard inquired if this policy addresses emergency response. Ms. Canterbury pointed
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May 14, 2019
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out that the section on communicating on behalf of ERMU outlines that the General
Manager, or his designee, will be the spokesperson in the event of an emergency or
natural disaster. Mr. Adams noted that separate from this, one of our initiatives is to work
on our emergency action/disaster recovery plan which would further cover
communications. Chair Dietz asked for further clarification on whether the Commission
should be deferring any inquiries they receive in the event of an emergency to the
General Manager. Mr. Adams responded.
4.2 Fire Department Participation Policy
Ms. Slominski shared that in the past we have not allowed non-exempt employees to
serve as a firefighter due to potential work conflicts.After some discussion with other
municipal utilities that do allow this, reviewing the City's policy on firefighter
participation, and increased interest from staff, a Fire Department Participation Policy was
drafted for consideration. Ms. Slominski explained that in order to allow participation, and
in order to clarify beyond the existing Supplemental Employment policy,this additional
policy was drafted to address responding to calls while at work or on-call, and how to
record time away from work for such calls. Ms. Slominski presented the policy.The
Commission had a few questions. Staff responded.
Moved by Commissioner Nadeau and seconded by Commissioner Stewart to approve
the Fire Department Participation Policy. Motion carried 5-0.
5.0 BUSINESS ACTION
5.1 Financial Report—March 2019
Ms. Slominski presented the March 2019 financial report as outlined in her memo. For the
benefit of the Commission, Ms. Slominski also addressed a few questions Chair Dietz had
forwarded to her in advance regarding the increase in administrative expenses, and
decrease in maintenance expenses for the Electric Department.
After presentation of the Water Department financial statement highlights, Mr. Ninow
spoke to the water main break that had occurred on Norfolk Avenue and how that may
affect the amount of gallons pumped versus the amount of gallons sold for the month of
April.There was discussion.
Moved by Commissioner Stewart and seconded by Commissioner Westgaard to receive
the March 2019 Financial Report. Motion carried 5-0.
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5.2 2019 First Quarter Delinquent Items
Ms. Slominski pointed out that on page two of the memo there two spots where it
incorrectly referenced the "fourth" quarter versus the "first" quarter, and apologized for
the error. Ms. Slominski presented the delinquent items for the first quarter which
included a delinquent amounts listing report totaling$2,911.61 for all services. She also
presented the delinquent items comparisons for 2018/2019, identifying the categories
and running totals.The amount for the first quarter write-offs was $2,856.42. Ms.
Slominski noted that our total for uncollectable accounts per revenue dollar is well below
the national average, at .0003%.
Chair Dietz asked if the switch to a multi-billing cycle has had a positive impact on the
quantity, and/or dollar amount of our delinquencies. Staff responded that it absolutely
has, and elaborated on the contributing factors.
Moved by Commissioner Bell and seconded by Commissioner Nadeau to approve the
First Quarter Delinquent Items Submitted. Motion carried 5-0.
5.3 Well#8 Control Building Bids
The Well #8 Control Building was noticed for formal bids.The bid opening was on April 29,
2019 at 1:00 p.m.; three bids were received. Mr. Ninow went over the bid tabulation. Staff
and Elfering &Associates recommended awarding the bid for the project to the lowest
bidder, Municipal Builders, Inc., for the bid amount of$198,017.00. Chair Dietz
commented on the large dollar range of the bids, and questioned if all the bidders were
bidding on the same thing. Mr. Ninow noted that Elfering and Associates did conduct a
post bid interview with Municipal Builders, Inc. to confirm they understood the project
requirements.
Moved by Commissioner Nadeau and seconded by Commissioner Stewart to award the
contract for the construction of the Well#8 Control Building to Municipal Builders, Inc.
for the bid amount of$198,017.00. Motion carried 5-0.
5.4 West Substation Equipment Storage Building Quotes
On December 12, 2017, the Commission adopted Governance Policy G.4i4 Procurement.
The policy delegated responsibility to the General Manager to adopt appropriate
management policies, procedures, and practices for procurement that are consistent with
the requirements of the most current version of, or successor to, Minnesota Statute
471.345 Uniform Municipal Contracting Law.The policy outlines that contracts for
procurement which are estimated to exceed $100,000 in value shall be presented to the
Commission for specific approval.
Mr. Tietz presented the two quotes that staff had received for the construction of a 50' x
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May 14, 2019
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100' tempered storage building to be located at the West Substation property. Staff
recommended the Commission approve contracting with Structural Buildings for
construction of the West Substation Equipment Storage Building for the quoted amount
of$125,943.00. Chair Dietz had a few questions. Staff responded.
Moved by Commissioner Westgaard and seconded by Commissioner Bell to award the
contract for the construction of the West Substation Equipment Storage Building to
Structural Buildings for the quoted amount of$125,943.00. Motion carried 5-0.
Mr. Adams noted that although the West Substation Equipment Storage Building was a
budgeted item, it was brought back to the Commission for approval because it was above
the $100,000 threshold outlined in the Governance Policy on Procurement. Mr.Adams
shared that since the policy was originally adopted, State Statute has increased the
$100,000 threshold to $175,000. He reached out to the Commission to see what their
interest would be in adjusting the dollar amount in the Procurement Policy to coincide
with current state law. After discussion, the Commission expressed an interest in making
g
the
change and directed staff to formallypresent this as an agenda item at an upcoming
Commission meeting.
6.0 BUSINESS DISCUSSION
Chair Dietz thanked the high school students for attending the meeting, and reached out
to them to see if they had any questions. The students had none.
6.1 Staff Updates
Mr.Adams had nothing additional to add to his staff report. In reference to the Minnesota
Municipal Power Agency(MMPA)2018 audit report, Commissioner Stewart had a question on
whether MMPA was a Midcontinent Independent System Operator(MISO) member. Mr.
Adams responded that they are.Commissioner Stewart also had a question on the downtown
street lights and whether those would be used just downtown or in additional areas such as
the city parks.She noted that she had watched a recent Park Board meeting where they had
expressed an interest in using that same light fixture in Lion's Park.There was discussion.
Ms.Slominski had noted in her staff report that ERMU is now accepting American Express
credit cards due to a reasonable utility rate negotiated by NISC. Commissioner Nadeau
inquired as to what type of rate we had gotten. Ms.Slominski stated that it was a flat utility
rate,and that she would have to verify the amount and get back to the Commission.
Mr.Tietz had nothing additional to add to his staff report. Chair Dietz asked what the vast
amount of locates were for on Proctor Avenue across from Beaudry Oil.Staff responded that
they thought it may have something to do with the Minnesota Department of Transportation
Highway 10 Project study.
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May 14, 2019
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Mr.Sagstetter spoke to the Clean Energy Community Education Grant that the City of Elk River
received, and shared that it's being used towards the creation of a display and other expenses
associated with staffing a display booth for one day at the Minnesota State Fair.The display
will focus on energy efficiency and sustainability. He stated that if any of the Commissioners
are interested in volunteering for a shift at the fair to please let him know.There was
discussion.
Mr.Sagstetter highlighted from his staff report that the rebuild of Engine#1 for the Landfill Gas
Plant came in around$200,000;the cost of the rebuild will be taken from reserves.
6.2 Future Planning
Chair Dietz announced the following:
a. Regular Commission Meeting—June 11, 2019
b. 2019 Governance Agenda
6.3 Other Business
There was no other business.
The Commission recessed the regular meeting at 4:18 p.m. and went into the closed
meeting.
6.4 Closing of Meeting: Meeting closed pursuant to MN Statute 13D.05, Subd. 3(a)for the
performance evaluation of Troy Adams, General Manager
The Commission reconvened the regular meeting at 5:35 p.m.
7.0 ADJOURN REGULAR MEETING
There being no further business,Chair Dietz adjourned the regular meeting of the Elk River
Municipal Utilities Commission at 5:36 p.m.Motion carried 5-0.
Minutes prepared by Michelle Canterbury.
A. Ogili
vigiaitAa
J•it J. P etz, ERM! o r mission Chair
Tina Allard,City Clerk
Elk River Municipal Utilities Commission Meeting Minutes
May 14, 2019
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