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2.2 ERMUSR 10-12-2021ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION HELD AT THE UPPERTOWN CONFERENCE ROOM September 14, 2021 Members Present: Chair John Dietz, Vice Chair Al Nadeau, Commissioners Paul Bell, and Mary Stewart Members Absent: Commissioner 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 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 1.0 GOVERNANCE 1.1 Call Meeting to Order The regular meeting of the Utilities Commission was called to order at 3:31 p.m. by Chair Dietz. 1.2 Pledge of Allegiance The Pledge of Allegiance was recited. 1.3 Consider theAgenda There were no additions or corrections to the agenda. Moved by Commissioner Bell and seconded by Commissioner Nadeau to approve the September 14, 2021, agenda. Motion carried 4-0. 1.4 Resolution Recognizing 2021 Public Power Week Mr. Geiser provided background on Public Power Week. He also explained that he was presenting the resolution at the September meetingso that it could be adopted prior to the event, which occurs before the next commission meeting. Elk River Municipal Utilities Commission Meeting Minutes September 14, 2021 Page 1 30 Chair Dietz read the resolution. There was discussion on promotions for the event. Moved by Commissioner Stewartand seconded by Commissioner Nadeau to adopt Resolution 21-16 Recognizing Public Power Week, October 3-9, 2021. Motion carried 4-0. 1.5 Resolution Recognizing 2021 Customer Service Week Ms. Slominski provided background on the significance of Customer Service Week, noting that the company exists to provide exceptional service to customers, and this week is intended to recognize all the staff members who make it possible. Ms. Nelson added her beliefthat ERMU has incredible customer servicestaff. Moved by Commissioner Nadeau and seconded by Commissioner Bell to adopt Resolution 21-17 Recognizing Customer Service Week, October 4-8, 2021. Motion carried 4-0. 2.0 CONSENT AGENDA (Approved By One Motion) Moved by Commissioner Stewartand seconded by Commissioner Nadeau to approve the Consent Agenda as follows: 2.1 August2021 Check Register 2.2 SpecialMeeting Minutes - August10, 2021 2.3 Special Meeting Minutes - August 25, 2021 Motion carried 4-0. 3.0 OPEN FORUM No one appearedfor open forum. 4.0 POLICY & COMPLIANCE Nothing was presented for policy & compliance. 5.0 BUSINESS ACTION 5.1 Financial Report – July 2021 Ms. Karpinski presented her report on the July 2021 financials, noting there was an error in billing, with a subsequent adjustment done in August. While this report shows electric sales down 3%, Ms. Karpinski explained that without the adjustment totals would show a 3% increase in sales. There was discussion. Elk River Municipal Utilities Commission Meeting Minutes September 14, 2021 Page 2 31 Chair Dietz had a clarifying question about how revenue compared to purchased power. Staff responded. Chair Dietz had noted a significant increase in water sales. Ms. Stewart had submitted a question to staff prior to the meeting about the performance of the landfill gas-to-energyplant which has had its revenue trending under budget all year. Ms. Karpinski explained that because the engines are nearing their end- of-life and production has decreased. Ms. Slominski noted that overall, the project has been very beneficial for ERMU. There was discussion. Moved by Commissioner Bell and seconded by Commissioner Nadeau to receive the July 2021 Financial Report. Motion carried 4-0. 5.2 2022 Annual Business Plan: Capital Projects & Equipment Purchases, and 20-Year Capital Projections Ms. Karpinski presented her memo on the 2022 Annual Business Plan. Chair Dietz soughtto confirm that we are starting work to implement Advanced Metering Infrastructure in 2022. Mr. Tietz explained that the $500,000 budgeted for 2022 will include the initial rollout for the network. Mr. Tietz added that staff is currently in the process of finding a consultant to assist with developing a request for proposals, explaining this would be a multiyear project. There was discussion. Chair Dietz asked if the project list had been organized by priority. Mr. Geiser responded that it is not. There was discussion. Chair Dietz had questions about the cycle for replacing bucket trucks. Mr. Geiser responded. Mr. Geiser sought commission permission to move forward with an order for the budgeted replacement of dump truck #7, having learned that the order would need to be submitted by November to ensure delivery of the vehicle in 2022. There was discussion. The commission provided consensus for Mr. Geiser to move forward with the order. Commissioner Bell had a question about highlighted line items on the plan. Ms. Karpinski explained that those totals are inserted to hold the place of a known planned project until exact amounts are received. There was discussion. Chair Dietz had question about the line item dedicating funds to a vehicle for the administration department. Ms. Karpinski explained that this was the vehicle to be used by the new general manger once they are hired. Chair Dietz asked what type of vehicle Elk River Municipal Utilities Commission Meeting Minutes September 14, 2021 Page 3 32 the general manager would need. Ms. Slominski responded that that general manager’s vehicle needs to be able to transport passengers. There was discussion. There was discussion about the line item dedicated to security cameras. Commissioner Stewart asked if staff was expecting increased costs or supply shortages for poles given the infrastructure loss in Louisiana due to the recent hurricane. Mr. Geiser responded that ERMU had recently received a shipment of poles and shouldn’t need any more for quite a while. Mr. Tietz added that they use a different, lighter class of pole in that part of the country. 5.3 Field Services Facility Expansion Project Update Mr. Kerzman presented his memo on the Field Services Facility Expansion projectwhich included a request to adopt resolution 21-18which awards and approves the assignment of construction contract to RJM construction for Waterproofing & Weatherproofing. Mr. Kerzman noted that crews have begun setting the precast concrete panel walls. Crews are also moving forward with installing the underground utilities while working with the Minnesota Pollution Control Agency, the City engineer, and City wastewater staff. There was discussion. Chair Dietz asked if staff had received any public comment lately. Mr. Kerzman sharedthere have been comments about the underground road work that resulted in traffic being temporarily reduced to one lane; he noted that work is now complete. Moved by Commissioner Nadeau and seconded by Commissioner Stewart to adopt resolution 21-18, Awarding and Approving the Assignment of Construction Contract to RJM Construction. Motion carried 4-0. 5.4 Wage & Benefits Committee Update Ms. Slominski presented her memo on the Wage & Benefit Committee Update, along with the proposed recommendations. Commissioner Bell had questions about the distribution of the longevity pay. Ms. Slominski explained that the check would be distributed in the month of the staff member’s anniversary at that month’s commission meeting. Commissioner Bell sought to confirm that the longevity pay program would be beginning in 2022, awarding staff who reach milestones from that point on, not before. Staff confirmed the program was not retroactive. Chair Dietz summarized the discussions the committee had in coming to these recommendations, explaining that the committee opted to make the later milestones the Elk River Municipal Utilities Commission Meeting Minutes September 14, 2021 Page 4 33 highest amounts for longevity pay to reward staff who had been here longest. There was discussion. Chair Dietznoted that the employee request to explore options for having summer hours for the field staff presents challenges and will require additional time to research and possibly bring back for implementation in a later year. The commission approved the followingeffective January 1, 2022: Moved by Commissioner Nadeau and seconded by Commissioner Stewart to approve changing the residency rule to allow within 20 miles or 30 minutes of response time. Motion carried 4-0. Moved by Commissioner Stewart and seconded by Commissioner Nadeau to approve Longevity Pay per proposed schedule and amounts. Motion carried 4-0. Moved by Commissioner Bell and seconded by Commissioner Stewart to approve additional vacation accruals beyond 25 days and change the beginning accrual as proposed. Motion carried 4-0. 5.5 2022 General Manager Search Ms. Slominski presented her memo on the 2022 General Manager Search. Ms. Slominski requested that the Commission appoint two of its members to the search committee, noting there could be efficiencies gained by appointing Chair Dietz and Commissioner Stewart, who served on the 2020 committee. Both members expressed their interest in returning to the role. There was discussion. Moved by Commissioner Bell and seconded by Commissioner Nadeau to appoint Chair Dietz and Commissioner Stewart as search committee members. Motion carried 4-0. 6.0 BUSINESS DISCUSSION 6.1 Staff Updates Commissioner Stewart asked Ms. Karpinski why staff was not attending National Information Solutions Cooperative’s Member Information Conference as planned. Ms. Karpinski explained that the change in plans was due to a COVID-19 exposure and a decision to be cautious. Ms. Nelson shared that the City of Otsego is once again looking at initiating the implementation of franchise fees. She added she was working with Attorney Beck on the agreements ERMU has received from them. Elk River Municipal Utilities Commission Meeting Minutes September 14, 2021 Page 5 34 6.2 Minnesota Municipal Utilities Association2021 Summer Conference Discussion Ms. Slominski offered the commission members who attended the conference the opportunity to discuss their experience. Chair Dietz shared that he had contacted MMUA staff to offer his opinion that there is too much technical information, saying that he would prefer more input on governance and commission issues. Chair Dietz went on to say he thought Michael Nolan, who provides federal legislation updates, should be given more time. He added it was a good networking opportunity. There was discussion. Commissioner Bell shared that he found the presentation on transmission interesting. There was discussion. Commission Stewart acknowledged the presentations on water matters, in particular two covering Perfluoroalkyl Substances. There was discussion. 6.3 Future Planning Chair Dietz announced the following: a.Regular Commission Meeting – October 12, 2021 b.2021 Governance Agenda 6.4 Other Business There was no other business. 7.0 ADJOURN REGULAR MEETING Moved by CommissionerNadeau and seconded by Commissioner Bell to adjourn the regular meeting of the Elk River Municipal Utilities Commission at 4:13 p.m. Motion carried 4-0. Minutes prepared by Tony Mauren. ___________________________________ John J. Dietz, ERMU Commission Chair ___________________________________ Tina Allard, City Clerk Elk River Municipal Utilities Commission Meeting Minutes September 14, 2021 Page 6 35