2.2 ERMUSR 01-12-2021ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE UTILITIES COMMISSION
HELD VIRTUALLY DUE TO COVID-19 PANDEMIC
December 8, 2020
Members Present: Chair John Dietz, Vice Chair Al Nadeau, Commissioners Paul Bell,
Mary Stewart, and Matt Westgaard
ERMU Staff Present: Theresa Slominski, General Manager
Melissa Karpinski, Finance Manager
Jennie Nelson, Customer Service Manager
Tom Sagstetter, Conservation & Key Accounts Manager
Michelle Canterbury, Executive Administrative Manager
Mark Fuchs, Operations Director
Tom Geiser, Operations Director
Chris Sumstad, Electric Superintendent
Mike Tietz, Technical Services Superintendent
Dave Ninow, Water Superintendent
Chris Kerzman, Engineering Manager
Tony Mauren, Communications & Administrative Coordinator
Scott Thoreson, Line Crew Foreperson
Others Present: Peter Beck, Attorney
1.0 GOVERNANCE
1.1 Call Meeting to Order
The regularmeeting of the Utilities Commission was called to order at 3:30 p.m. by Chair Dietz.
1.2 Roll Call
Chair Dietz conducted a roll call for the commission members.All but Commissioner Nadeau
were present at the start of the meeting.
1.3 Consider the Agenda
Chair Dietz requested the addition of agenda item 5.4 to discuss the timeline in bonding for the
field services facility expansion project.
Moved by Commissioner Stewart and seconded by Commissioner Bell to approve the
amended December 8, 2020, agenda. Motion carried 4-0.
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Commissioner Nadeau joined the meeting following the approval of the amended agenda.
1.4 Recognition of Employee Achievement
Ms. Fuchs announced that Mr. Geiser had completed Minnesota Municipal Utilities
Association’s Leadership Academy. Mr. Geiser shared that it was a good course that he will
benefit from, and he recommended it for everyone in a leadership position.
1.5 Recognition of Employee Promotions
Mr. Geiser introduced Scott Thoreson as the new Line Crew Foreperson, havingbeen internally
promoted to the position. Mr. Geiser notedthat Mr. Thoreson had been with ERMU for over
27 years. Mr. Thoreson expressed his appreciation for the opportunity.
1.6 Recognition of Employee Retirement
Ms. Slominski virtually presented the honorary meter lamp to Mr. Fuchs for over 34 years of
service. She also expressed her gratitude for the contributions Mr. Fuchs has made to ERMU.
Ms. Slominski added that staff was planning to host a sociallydistancedevent to honor him at
the end of the month. Chair Dietz shared his memories of Mr. Fuchs, commended his
knowledge and professionalism, and wished him well. Mr. Fuchs expressed his appreciation for
the experience of working at ERMU. Mr. Fuchs’ last day of employment will be December 31,
2020.
2.0 CONSENT AGENDA (Approved By One Motion)
Moved by Commissioner Belland seconded by Commissioner Nadeau to approve the
Consent Agenda as follows:
2.1 November 2020 Check Register
2.2 November 10, 2020 Regular Meeting Minutes
2.3 2021 Official Depository
2.4 2021 Official Newspaper
2.5 2021 Utilities Meeting Schedule
2.6 2021 Performance Metrics and Incentive Compensation Policy Scorecard
2.7 Employee Handbook Policy Changes
Motion carried 5-0.
3.0 OPEN FORUM
There were no public comments submitted for open forum.
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4.0 POLICY & COMPLIANCE
4.1 2021 Governance Agenda
Mr. Slominskipresented the proposed 2021 Governance Agenda, whichsets the schedule
for major governance action throughout the year, providing transparency in the most
critical responsibilities of the Commission.
Moved by Commissioner Nadeauand seconded by Commissioner Stewartto adopt the
2021 Governance Agenda. Motion carried 5-0.
5.0 BUSINESS ACTION
5.1 Financial Report – October2020
Ms. Karpinski presented the October2020 financial report as outlined in her memo.
Moved by Commissioner Westgaard and seconded by Commissioner Bell to receive the
November 2020 Financial Report. Motion carried 5-0.
5.2 2021 Annual Business Plan: Budget and Schedule of Rates & Fees
In November, the preliminary 2021 Annual Business Plan was presented to the
Commission. Ms. Karpinski presented the proposed 2021 Annual Business Plan and
pointed out that there have been some changes due to the finalizing of projects and
expenses; Ms. Karpinskiprovided details on the changes and the financial impact to the
Electric and Water Budgets. As previously presented,staff is proposing a 0%rate increase
for both electric and water.
Chair Dietz had a question about the proposed 0% rate increase in relation to projected
purchased power costs. Ms. Karpinski responded.
Commissioner Stewart had a question on the Electric Vehicle Charging Program relating to
the automatic enrollment in the Clean Energy Choice Program at no additional monthly
charge. Mr. Sagstetter responded.
Moved by Commissioner Stewart and seconded by Commissioner Nadeau to adopt the
2021Annual Business Plan. Motion carried 5-0.
5.3 Field Services Facility Expansion Project – Architectural Contract
Mr. Kerzmanpresented the contract for architectural services with Kodet Architectural
Group, LTD. for the Field Services Facility Expansion Project. Mr. Kerzman noted thatthe
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initial proposed contract from Kodet had been reviewed by ERMU’s legal servicesand the
version presented for approval incorporates their recommendations.
Commissioner Westgaard noted that it was a standard industry contract.
Moved by Commissioner Bell and seconded by Commissioner Westgaardto approve the
contract for architectural services with Kodet Architectural Group, LTD. Motion carried 5-0.
5.4BondingTimeline for Field Services Facility ExpansionProject
Chair Dietz informed the Commission that at their meeting the previous night, the City
Council approved the purchase of three bonds at exceptionallylow interest rates. Chair Dietz
had been advised by the City’s bond consultant that these levels are expected to continue
through the first quarter of 2021. Chair Dietz advised the Commission and staff to move
forward with bonding for the field services facility expansion project as quickly as possible to
take advantage of the low rates. Staff shared that they are working with the construction
manager to complete the budget estimate before the end of the year at which time a
conversation will take place with the bonding consultant to determine the bonding timeline.
The goal is to move forward with the bonding as quickly as possible in 2021, with the bidding
of subcontractors to take place February 2021.
6.0 BUSINESS DISCUSSION
6.1 Staff Updates
Mr. Sumstadinformed the Commission that the opening for aLead Lineworker created by Mr.
Thoreson’s promotion had been filled internally by Josh Shoutz. He noted that this will create
an open lineworker position to be filled externally.
Mr. Kerzman had noted in his staff report that after conducting interviews with three
construction management firms, RJM Construction had been selected to assist with the Field
Services Facility Expansion Project. Commissioner Bell had a question for Mr. Kerzmanabout
the status of ERMU’s contract with RJM. Mr. Kerzman responded. Chair Dietz added that the
City has had a good experience working the RJM in the past.
6.2 ERMU Website Redevelopment Initiative
Ms. Canterbury presented background information on the Website Redevelopment Initiative.
She shared that objectives for the project included: updating the site with a fresh and modern
look, incorporating ERMU’s branding, increased focus on visual elements, more concise
content, easier navigation, accessibility to all visitors utilizingADA best practices, and making
the site mobile responsive. Ms. Canterbury thanked ERMU staff for their input on the site, the
Communications & Administrative Coordinator for his help throughout the project, Prime
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Design for their motivation to put out the best website possible, and the Commission for
approving the financing to create the website that ERMU needed. Ms. Canterbury then shared
her screen to provide a tour of the site.
Commissioner Stewart congratulated staff on the site. She added that she had shared news of
the project with Minnesota Municipal Power Agencyand its other membercommunities who
may be looking to update their websites.
Chair Dietz asked if the web page will feature an article on the 0% rate increase. Mr. Mauren
responded that the press release was nearly completed. Mr. Mauren also added to the
presentation of the website that the success of the project was due in major part to Ms.
Canterbury’shard work and commitment to a successful finished product.
6.3 Future Planning
Chair Dietz announced the following:
a.Regular Commission Meeting – January 12, 2021
b.2020 Governance Agenda
6.4 Other Business
Chair Dietz asked if staff was aware of COVID-19 utility bill assistance programs from the
County. Ms. Slominski responded that she was aware of those programs but due to the
regulations and limitations ofthose programs, as well as the availability of funds from
other organizations, ERMU did not purse them. Ms. Slominski added that ERMU had
received reimbursements for costs incurred due to COVID-19 such as remote work
equipment. Chair Dietz had additional questions. Staff responded.
Chair Dietz asked for an update on the amount of unpaid bills due to the pandemic. Ms.
Karpinski responded that at the end of October 2020 the over 90-day bucket for aging
accounts receivable is only about 0.4% higher than October 2019.
Commissioner Bell shared that he will be attending the January, February, and March
commission meetings via teleconference due to travel.
7.0 ADJOURN REGULAR MEETING
Moved by Commissioner Nadeauand seconded by Commissioner Bell to adjourn the regular
meeting of the Elk River Municipal Utilities Commission at 4:15 p.m. Motion carried 5-0.
Minutes prepared by Tony Mauren.
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___________________________________
John J. Dietz, ERMU Commission Chair
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Tina Allard, City Clerk
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