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2.2 ERMUSR 04-12-20221.5 2022 Election of Officers – Chair and Vice Chair Per ERMU policy, the offices of the ERMU Commission include a chairand vice chair. The Commission elects members to these offices for one-year terms each year during its regular meeting in the month of March. After discussion, the following appointments were made. Moved by Commissioner Nadeau and seconded by Commissioner Stewart to reappoint John Dietz as Chair. Motion carried 5-0. Moved by Commissioner Bell and seconded by Commissioner Westgaard to reappoint Al Nadeau as the Vice-Chair. Motion carried 5-0. 1.6 2022 Committee Appointments Per ERMU policy, the Commission shall appoint committee members annually following the 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. Following an inquiry from Chair Dietz, attorney Beck confirmed that the Commission could vote to maintain the previous year’scommittee and chair appointments with a single vote. There were no requests for changes from the Commission. Moved by Commissioner Nadeau and seconded by Commissioner Stewart to maintain the following committee and committee chair appointments for 2022: Reappoint John Dietz and Mary Stewart to the Wage and Benefits Committee with John Dietz to continue to serve as committee chair. Reappoint Matt Westgaard and Al Nadeau to the Financial Reserves and Investment Committee with Matt Westgaard to continue to serve as committee chair. Reappoint Mary Stewart to the Information Security Committee. Reappoint Matt Westgaard and Paul Bell to the Dispute Resolution Committee with Matt Westgaard to continue to serve as committee chair. Motion carried 5-0. Reappoint volunteersAl Nadeau and Paul Bell to the Field Services Facility Expansion Project Workgroup. Motion carried 5-0. Elk River Municipal Utilities Commission Meeting Minutes February 8, 2022 Page 2 35 2.0 CONSENT AGENDA (Approved By One Motion) Moved by Commissioner Westgaard and seconded by Commissioner Bell to approve the Consent Agenda as follows: 2.1 Check Register – February 2022 2.2 Regular Meeting Minutes – February 8, 2022 Motion carried 5-0. 3.0 OPEN FORUM No one appearedfor open forum. 4.0 POLICY & COMPLIANCE 4.1 Annual Commissioner Orientation Mr. Mauren presented his memo onthe annual commission orientation. This year’s orientationincluded a summaryof the updates to the policy manual and reference guide, a demonstration ofthe electronic versionof thepolicy manual and reference guides available to the Commission, and a presentation from Mr. Theisen on best practices for cyber security. Chair Dietz inquired if legal counsel had reviewed the employee handbook. Ms. Slominski responded that it had. Commissioner Stewart stated the importance ofcyber security providing an example of a city who had been the victim of ransomware. There was discussion. owntown Streetlights 4.2 D Chair Dietz had requested a discussion of ERMU’s streetlight attachment policy after hearing concerns from the Downtown Elk River Business Association (DERBA) about being charged by ERMU to attach wreaths to the downtown streetlights. Ms. Slominski provided the Commission with the memorandum of understanding between ERMU and the City regardingdowntown streetlights. The memorandum states ERMU will donate labor for the initial installation and general maintenance of the streetlights. Since their installation, ERMU has gone on to donate labor to the City to attach decorative banners and planters. In 2021 the DERBA requested that ERMU attach wreaths to the downtown streetlights, at which time theywere provided a letter which lists the labor rates that would be charged as Elk River Municipal Utilities Commission Meeting Minutes February 8, 2022 Page 3 36 DERBA is not a city entity. Ms. Slominski sought clarification on the relationship between the City and DERBA to understand the appropriate charges to be applied. Chair Dietz shared background on the partnership between the City’s Housing and Redevelopment Authority (HRA) and DERBA, wherein the HRA provides funds to the businesses to beautify downtown. Chair Dietz stated that DERBA was displeased to learn that it would be billed $667.50 for the installation of wreaths on the streetlights as it considered that project to be part of the partnership with the HRA, a city entity which should be entitled to donated labor. Mr. Geiser explained that ERMU staff had not worked with any member of city staff on the wreaths installation whereas they had been involved with the banner and planter installations. Ms. Slominski shared that there was no communication of disagreement in October when the DERBA was sent the memo that states the labor rates or when they provided ERMU the contact information for the individual in charge of invoices. There was discussion. Chair Dietz proposed bringing the information he had received back to the City Council to discuss how to proceed. Chair Dietz requested staff to draft a policy on attachments to downtown streetlights for commission comments. Ms. Slominski suggested building on the existing memorandum of understanding which addresses the issue. Chair Dietz agreed. The Commission had consensus to send the invoice to DERBA. 5.0 BUSINESS ACTION inancial Report – January 2022 5.1 F Ms. Karpinski presented the January 2022 Financial Report. Chair Dietz noted his concerns about the rate of Purchased Power expenses and whether the 2022 electric rate increase was going to cover costs without requiringpower cost adjustments. Staff explained that ERMU’s budget is based on the numbers from its wholesale power provider, and that actual costs have exceeded expectations. Commissioner Stewart explained that the wholesale power provider had budgeted with the best data available but external factors such as the economyandfuel supply issues have affected costs. Chair Dietz asked at what percent power cost adjustments are raising customer’s bills. Ms. Slominski said she would find that information and bring it back to the Commission. Elk River Municipal Utilities Commission Meeting Minutes February 8, 2022 Page 4 37 Chair Dietz inquired as to why sales were lower in January 2022 compared to the previous year. Ms. Karpinski noted that this year’s billing cycle had 28 days compared to 35 in January of 2021. Ms. Karpinski noted a question submitted by Commissioner Stewart before the meeting regarding the interest in dividend income, which shows a negative number as the fair market value of ERMU’s investments have decreased. Moved by Commissioner Westgaard and seconded by Commissioner Stewart to receive the January 2022 Financial Report. Motion carried 5-0. 5.2 Field Services Facility Expansion Project Update Mr. Kerzman presented the Field Services Facility Expansion Project Update, highlighting thecompletion of concrete pours in the southern portion of the building, as well as continued electric, plumbing, and HVAC work. Mr. Kerzman called the Commission’s attention to the two change orders attached to his memo, the first being for additional items identified during construction as well as some value engineering. The second order allows for the painting of the walls and ceiling inside the vehicle storage and inventory areas. Acceptance of both orders would result in a $53,020.04 increase to the contract. Chair Dietz asked if the change in costs came from contingency funds; Mr. Kerzman explained they would be added to the contract with RJM Construction. Moved by Commissioner Bell and seconded by Commissioner Nadeau to approve Change Order #4 – Site Utilities Changes. Motion carried 5-0. Moved by Commissioner Westgaard and seconded by Commissioner Stewart to approve Change Order #5 – Painting Alternates. Motion carried 5-0. Zimmerman Fire Department 5.3 Resolution Acknowledging Contribution – Ms. Slominski informed the Commission that ERMU had received a donation from the Zimmerman Fire Department in the amount of $1,825 to be used to purchase a new automated external defibrillator. The Commission was appreciative of the donation. Moved by Commissioner Bell and seconded by Commissioner Nadeau to receive a contribution of $1825 from the Zimmerman Fire Department for the purchase of an automated external defibrillator. Motion carried 5-0 Elk River Municipal Utilities Commission Meeting Minutes February 8, 2022 Page 5 38 6.0 BUSINESS DISCUSSION 6.1 Staff Updates Ms. Slominski informed the Commission that the registration for the Minnesota Municipal Utilities Association’s summer conference would be opening soon and to have the dates in mind so they could let staff know if they planned to attend. The conference is scheduled for August 22-24. Ms. Karpinski shared that she had been working with the auditors and that meetings have gone well. Ms. Youngs introduced herself to the Commission as it was her first meeting in the customer service manager role. Mr. Geiser shared the recovery progress of a lineworker who had been in an accident outside of work. There was discussion. Mr. Ninow updated the Commission on communications with the contractor working on the County Road 13 project. 6.2 City Council Update Commissioner Westgaard provided an update from the City Council, covering topics such as redistricting, the Furniture & Things Community Event Center branding plan, and the County Road 33 trail. There was discussion. merican Public Power Association Legislative Rally Update 6.3 A Ms. Slominski provided an update on the American Public Power Association’s Legislative Rally in Washington, D.C. She highlighted discussions on climate change, infrastructure, electric vehicles, as well as visits with members of congress and/or their staff. Ms. Slominski also spoke at the conference on bonding. Mr. Sagstetter shared his experiences at the rally including information he had received on the Federal Energy Regulatory Commission and discussions on pole attachments. 6.4 Future Planning Chair Dietz announced the following: a. Regular Commission Meeting – April 12, 2022 b. 2022 Governance Agenda Elk River Municipal Utilities Commission Meeting Minutes February 8, 2022 Page 6 39 6.5 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 5:05 p.m. Motion carried 5-0. Minutes prepared by Tony Mauren. ___________________________________ John J. Dietz, ERMU Commission Chair ___________________________________ Tina Allard, City Clerk Elk River Municipal Utilities Commission Meeting Minutes February 8, 2022 Page 7 40 UTILITIES COMMISSION MEETING TO:FROM: ERMU CommissionMelissaKarpinski – Finance Manager MEETING DATE: AGENDA ITEM NUMBER: April 12, 20222.3 SUBJECT: Resolution Electing Not to Waive Statutory Tort Limits for Liability Insurance ACTION REQUESTED: Adopt Resolution 22-6Electing Not to Waive the Statutory Tort Limits for Liability Insurance BACKGROUND: The League of Minnesota Cities Insurance Trust (LMCIT) requires annual approval of the Utilities’ intent to waive or not waive the statutory limits on tort liability as set forth in Minnesota Statutes. DISCUSSION: Attached is the waiver form which also has information regarding making a decision on whether to elect not to waive, or to waive, the statutory limits. Last year we did not waive the limits, and neither did the City. The recommendation we have received from our insurance agent is not to waive the limits. FINANCIAL IMPACT: This limits our exposure to $500,000 rather than $2,000,000 for an individual claimant; and $1,500,000 rather than $2,000,000 for all claimants of a single occurrence. ATTACHMENTS: ResolutionNo. 22-6 - Electing Not to Waive the Statutory Tort Limits for Liability Insurance LMCIT Liability Coverage Waiver Form ______________________________________________________________________________ Page 1 of 1 41