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02-09-2021 ERMU MIN ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION HELD AT THE ELK RIVER FIRE STATION EOC CONFERENCE ROOM February 9,2021 Members Present: Chair John Dietz,Commissioners Al Nadeau, Mary Stewart,and Matt Westgaard Present via Zoom: Commissioner Paul Bell participated in the meeting via interactive television as he was out of state at the time of the meeting. 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 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 Parker Theisen, IT LOT Technician Others Present: Peter Beck,Attorney—present via teleconference 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 February 9,2021,agenda. Motion carried 5-0. Elk River Municipal Utilities Commission Meeting Minutes February 9, 2021 Page 1 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 January 2021 Check Register 2.2 January 12,2021 Regular Meeting Minutes Motion carried 5-0. 3.0 OPEN FORUM No one appeared for open forum. 4.0 POLICY&COMPLIANCE 4.1 2020 Annual Safety Report In 2020, ERMU 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. Ms. Slominski presented the OSHA Form 300A that had been filed; there was 0 recordable cases which resulted in 0 days away from work. The two incidents reported in 2020 did not result death, injury,or work restrictions. Ms. Slominski also provided the 2019 filing for comparison. Ms.Slominski noted that this is a voluntary report that ERMU completes and attributed the favorable results to ERMU's culture of safety. Chair Dietz asked if the low incidence rate could improve ERMU's worker's compensation premium. Ms.Slominski confirmed that it would. 5.0 BUSINESS ACTION 5.1 Financial Report—December 2020 Ms. Karpinski presented the December 2020 financial report as outlined in her memo. It was noted that they are preliminary unaudited financial statements. Chair Dietz had a question about the difference in the electric department's Other Operating Expense item compared to the previous year. Staff responded. Chair Dietz asked about the cause for the increase in water connection fees for 2020. Mr. Ninow suggested it was likely caused by the large amount of construction that occurred. Elk River Municipal Utilities Commission Meeting Minutes February 9, 2021 Page 2 Moved by Commissioner Stewart and seconded by Commissioner Nadeau to receive the December 2020 Financial Report. Motion carried 5-0. 5.2 2020 Fourth Quarter Delinquent Items Ms. Karpinski presented the delinquent items for the fourth quarter, including a delinquent amounts report totaling$5,668.90 for all services. Commissioner Westgaard sought to clarify that the increase in Write Offs was due to the state mandated limit of six years to recover funds from Revenue Recapture. Staff confirmed this was accurate. Moved by Commissioner Nadeau and seconded by Commissioner Stewart to approve the 2020 Fourth Quarter Delinquent Items Submitted. Motion carried 5-0. 5.3 Strategic Plan and 2020 Annual Business Plan Results Ms. Slominski presented the Strategic Plan and 2020 Annual Business Plan Results to share accomplishments and financial results for the year with the Commission. She invited members of the leadership team to present on a few of the initiatives they were the project lead for. Additional comments beyond the written review were the following. During his presentation, Mr.Tietz noted the implementation of National Information Solutions Cooperative's (NISC) modules, which allow for paperless workflows and limiting the need for in-person interactions was particularly timely with the COVID-19 pandemic. Ms. Nelson added her compliments on the collaboration of the field staff and the customer service department in implementing these new modules. Mr. Sumstad noted there was a lot of road work throughout 2020, listing several projects. He added that the electric department also completed the infrastructure in four additions to existing housing developments and connected 127 new services, including large commercial services such as the Coborn's grocery store and a new appartement building in Otsego.The department also installed a three phase transformer for the leachate line which runs from the landfill to the city's treatment facility and looped four transformers at the landfill moving them to an underground service. Mr. Sumstad also highlighted system improvements that occurred, including installing line over Highway 10 at Jarvis Street, transitioning service on Edison Street to underground, and improvements in Dayton. During his presentation, Mr. Kerzman complimented the working relationship of ERMU's new IT/OT Technician with the City's new IT director as they collaborate on cyber security initiatives. Elk River Municipal Utilities Commission Meeting Minutes February 9, 2021 Page 3 During Mr. Geiser's presentation, Chair Dietz asked if the pink ribbons tied around some of the trees along Highway 10 meant they were going to be removed to clear the right of way for that highway's rebuild project. Mr. Geiser confirmed that was accurate. Mr. Geiser added that current plans for the Highway 169 Redefine project call for ERMU to move all infrastructure that conflicts with work by June of 2022. Following Mr. Ninow's presentation, Chair Dietz asked if there was a lot of water infrastructure that would need to be moved for the Highway 169 Redefine project. Mr. Ninow responded that there were seven areas in the system that conflict with the plan and require rerouting, movement, or the abandonment of parts of the current water main. Ms. Canterbury provided detail of the website redesign project, also explaining goals and objectives which included updating the look, incorporate branding, increasing a focus on visual elements, simplifying navigation, improving accessibility for individuals with disabilities, making the site mobile responsive, and incorporating search engine optimization. Ms. Canterbury noted the importance of this project as the website is often what represents ERMU to the community. Chair Dietz had questions on the landfill gas plant for Mr. Sagstetter during his presentation. Staff responded. Ms. Karpinski presented the paperless initiative adding that the new system will allow for the audit to occur mainly electronically. Chair Dietz had a question about the sorting process for invoices with the new systems. Staff explained the process. At the end of presentations, Commissioner Stewart thanked staff for working through the challenges of COVID-19 to have a successful 2020. Ms. Slominski echoed Commissioner Stewart's comments. Ms. Slominski directed the Commission's attention to the annual business plan which showed ERMU had a good financial year despite the challenges, allowing for a zero percent rate increase. Ms. Slominski went on to ask the commission for feedback about the information they were receiving and if it provided them the details they need to properly govern. Commissioner Stewart reiterated a request to have comparative balance sheet presented. Ms. Karpinski stated that ERMU can request that NISC begin the programing for this. Chair Dietz expressed appreciation for hearing all department leads presenting their topics. Commissioner Westgaard agreed and added there will be a need for continued communication especially with bigger projects in the future such as Highways 10 and 169. Elk River Municipal Utilities Commission Meeting Minutes February 9, 2021 Page 4 Commissioner Bell added there was a perceptible sense of pride staff takes in their departments and expressed his appreciation for the reports. 5.4 Field Services Facility Expansion Protect—Plans, Project Estimate,and Construction Management Contract Mr. Kerzman presented plans, project estimate, and the construction management contract for the Field Services Facility Expansion project to the commission. Mr. Kerzman noted they are targeting February 26 as the date to solicit for bids for the project with a bid opening scheduled for March 24. Chair Dietz asked about the expected start date for construction. Mr. Kerzman responded the projected start in May is dependent on lead time for precast concrete and steel. Moved by Commissioner Stewart and seconded by Commissioner Nadeau to authorize staff to solicit for public bids on the Field Services Expansion Project contingent upon staff review and approval of bid documents. Motion carried 5-0. Moved by Commissioner Westgaard and seconded by Commissioner Nadeau to approve the contract with RJM for construction management services. Motion carried 5-0. 5.5 Consulting Agreement—Mark Fuchs Ms. Slominski discussed the opportunity to contract with former Operations Director Mark Fuchs as a consultant beginning in March or April through the end of the year.This was deemed advisable as there are multiple large projects occurring in the near future that would benefit from the services and expertise of Mr. Fuchs.The parameters for creating the contract, including compensation, were discussed. Commissioner Stewart asked if this type of compensation could conflict with Mr. Fuchs' pension. Ms. Slominski added that she would look for input from the attorney to meet legal requirements. Commissioner Westgaard expressed his support of the agreement considering Mr. Fuchs' experience and the major projects on the horizon. He also noted a previous consulting agreement was between ERMU and a departing employee as opposed to a retired employee in this instance. Commissioner Westgaard advised staff to find agreeable terms for the contract to ensure equitable value for both parties. Commission consensus was to authorize Ms. Slominski to work with the attorney to prepare and enter into an agreement for consulting services with Mark Fuchs. 6.0 BUSINESS DISCUSSION Elk River Municipal Utilities Commission Meeting Minutes February 9, 2021 Page 5 6.1 Staff Updates Ms. Canterbury provided a reminder that the annual Commissioner Orientation will be held in March. Rather than scheduling a special meeting,she proposed conducting the orientation at the March 9,2021 regular commission meeting. Ms.Canterbury reached out to the commission to see if there were any specific topics or trainings the commission would like to have covered. Ms. Canterbury requested the commissioners bring their Governance Commission Policy Book to the orientation. Mr.Sumstad noted that Lead Lineworker Darren Weber put in his two weeks' notice with a last day of February 19. Commissioner Stewart asked if an apprentice lineworker had been hired to fill another opening. Mr.Sumstad stated that Blaine Snyder had been hired for that opening and his first day was February 8. Mr. Kerzman shared that the company providing the power plant transformer has had production issues,changing the estimated ship date from the end of February to the end of March.As this will tighten the project's timelines,there is a meeting scheduled with the manufacturer's representative and the sales representative to discuss options. 6.2 Future Planning Chair Dietz announced the following: a. Regular Commission Meeting—March 9, 2021 b. 2021 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 4:33 p.m.Motion carried 5-0. ;Minutes prepared by Tony Mauren. Jo J.Di z, Commission Chair Tina Allard,City Clerk Elk River Municipal Utilities Commission Meeting Minutes February 9, 2021 Page 6