2.3 ERMUSR 06-14-2022ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE UTILITIES COMMISSION
HELD AT THE UPPERTOWN CONFERENCE ROOM
May 10, 2022
Members Present: Chair John Dietz, Vice Chair Al Nadeau, Commissioners Mary Stewart, Matt
Westgaard, and Paul Bell
ERMU Staff Present: Theresa Slominski, General Manager
Melissa Karpinski, Finance Manager
Sara Youngs, Customer Service Manager
Tom Sagstetter, Conservation & Key Accounts Manager
Tom Geiser, Operations Director
Chris Sumstad, Electric Superintendent
Mike Tietz, Technical Services Superintendent
Dave Ninow, Water Superintendent
Chris Kerzman, Engineering Manager
Jenny Foss, Communications & Administrative Coordinator
Others Present: Peter Beck, Attorney; Cal Portner, City Administrator
OVERNANCE
1.0 G
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 Stewart to approve the
May 10, 2022, agenda. Motion carried 5-0
2.0 CONSENT AGENDA (Approved By One Motion)
Moved by Commissioner Stewartand seconded by Commissioner Westgaard to approve the
Consent Agenda as follows:
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2.1 Check Register – April2022
2.2 Regular Meeting Minutes – April 12, 2022
2.3 2022 First Quarter Utilities Performance Metrics Scorecard Statistics
2.4 2022 Distributed Energy Resources Tariff and Net Metering – Rules and Tariff
2.5 2021 Consumer Confidence Report
Motion carried 5-0.
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 – March 2022
Ms. Karpinski presented the March 2022 Financial Report. She noted both electric and
water usage were up in March by 1%. Overall electric finances are trending below budget
year to date and prior year due to the Energy Adjustment Clause (EAC), which comes from
the power provider.
Ms. Karpinski informed the Commission that the May billing should conclude power cost
adjustments passed through to customers in order to cover EAC charges from 2021, while
future adjustments will cover EACs from 2022.
Ms. Karpinski also commented that water is doing better than budget.
Chair Dietz asked for clarification on the timeline for accruing funds to cover the EAC from
2021. There was discussion.
Moved by Commissioner Nadeau and seconded by Commissioner Stewart to receive the
March 2022 Financial Report. Motion carried 5-0.
5.2 2021 Annual Report
Ms. Slominski presentedthe 2021 Annual Report on behalf of Mr. Mauren who was
unable to attend the meeting. She explained the focus of the report is on how projects
being done in 2021 will enhance our service in the future.
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A copy of the report was given to each Commissionerand was included in the commission
packet.
Moved by Commissioner Bell and seconded by Commissioner Westgaard to receive the
2021 Annual Report. Motion carried 5-0.
5.3 2022 First Quarter Delinquent Items
Ms. Karpinski reported on thefirst quarter delinquent items.She stated our write-offs are
about the same as last year and are generally low to begin with. Ms. Karpinski commended
the work of the customerservice team.
Chair Dietz asked for clarification on the total amount collected from Revenue Recapture. Ms.
Karpinski explained the amount collected may not only be for first quarter of this year but
also from prior delinquencies.
Moved by Commissioner Stewart and seconded by Commissioner Nadeau to approve
the 2022 First Quarter Delinquent Items submitted. Motion carried 5-0.
5.4 Customer Satisfaction Survey Results
Ms. Slominski presented the first Customer Satisfaction Survey Report from Q Market
Research. She explained in prior years a customer satisfaction survey was part of the Utilities
Performance Metric Incentive Compensation (UPMIC) score but was removed due to a low
response rate. ERMU entered into a contract with Q Market Research with hopes to
incorporate a customer survey back into the UPMIC.
The first round of 1000 surveys yielded 87 responses which is a higher response rate than
previous years when the survey was conducted by ERMU staff. Ms. Slominski noted that this
survey also allowed for participants to opt in to being reached for follow up and/or additional
feedback which was one of staff’s goals.
Ms. Slominski added there is money budgeted to conduct another survey in the fall and
ERMU will continue to review this process to see if targeting smaller geographical areas yields
more responses.
She added the initial results show we are providing good service and we hope to see this
favorable feedback continue in the future.
Commissioner Stewart asked for clarification on the geographic areas contacted in the first
survey distribution. Ms. Slominski did not have that information on hand but did explain that
the customers were selected utilizing ERMU’s billing cycle structure which divides the service
territory into sections. Ms. Slominski stated that she would provide that information to the
Commission at a future date. There was discussion.
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Moved by Commissioner Bell and seconded by Commissioner Westgaard to receive the
Customer Satisfaction Survey Report - Q1 - 2022. Motion carried 5-0.
5.5 Downtown Streetlights
Ms. Slominski presented the Downtown Streetlight Installation and Maintenance
Agreement Between ERMU and the City,previously a memorandum of understanding
established in2012. Ms. Slominskithenhighlightedseveral key points in the agreement.
ERMU will provide the labor toinstall the brackets on the designated streetlights as they
need to be repaired or replaced, with the City providingthe materials. ERMU will continue
to hang the bannersas needed but not annually. The City willcontinue toprovide the
hanging baskets, put them up and take them down, and maintain them. ERMU will
partner with the City to maintain the trail lights, however, the City will provide the
replacement lights and materials as they differ from those ERMU has in inventory. ERMU
will continue to hang the flags as it has done in the past on a specific number of poles that
already have the brackets on them.
Ms. Slominski noted there are three blank appendices on the agreement which will
eventually contain maps that identify specific streetlights, trail lights, and poles
mentioned in the agreement.
Ms. Slominski called the Commission’s attention to two corrections that needed to be
made in the Agreement. The first sentence of Section 3.0 Maintenance of Streetlights and
Trail Lights should read, “As owner of City streetlights, ERMU shall provide all material
costs and labor associated with maintenance of all streetlights located within the City.”
The effective date should be May 16, 2022.
Chair Dietz sought clarification on what entity would beplacing the hanging basketson
the streetlight brackets. Ms. Slominski explained the City contracts with a florist to
deliver, hang, and maintain the baskets. Commissioner Westgaard asked if there should
be specific language in the agreement stating that ladders should not be used or leaned
against the poles for any reason. There was discussion.
Commissioner Bell sought clarification on language in Section 5.0 Attachment of Brackets
to Streetlights pertaining to the replacement of the banners. It was determined the
agreement should read, “ERMU will install replacement banners provided by the City
when banners are damaged or due for replacement.”
Moved by Commissioner Nadeau and seconded by Commissioner Westgaard to approve
the Street Light Installation and Maintenance Agreement Between ERMU and the City
with the changes discussed. Motion carried 5-0.
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5.6 Field Services Facility Expansion Project Update
Mr. Kerzman discussed the progress being made at the new field services facility. He
noted that concrete testers would be on site to determine what if any impact heavy
rainstorms had on the facility. Mr. Kerzman added that over the next month a lot of work
will be starting on the second floor with a possible move in date of mid-July, adding that
RJM Construction is working toobtain a temporary Certificate of Occupancy so they can
start moving some inventory into the finished areas of the building.
Mr. Kerzman directed the Commission’s attention to the attached resolution to approve
the contract for the final cleaning of thebuilding quoted at $15,980 which isbelow the
$40,000 allowance RJM Construction carried for that work.
Chair Dietz asked if there was an open house planned for the community to visit the new
building. There was discussion about planning an event.
Moved by Commissioner Stewart and seconded by Commissioner Nadeau to adopt
Resolution 22-9, Awarding and Approving the Assignment of Construction Contract to
RJM Construction. Motion carried 5-0.
6.0 BUSINESS DISCUSSION
6.1 Staff Updates
Ms. Slominski informed the Commission that herperformanceevaluation would occur
during a closed portion of the June meeting. She added that Mr. Mauren will be sending
information to the Commission next week.
Ms. Youngs was asked by Chair Dietz to give an update regarding garbage collection
challenges. She stated staff has been making progress with the transition to a new service
for some customers and that interactions with Republic Services have been very
productive.
Chair Dietz requested an update on the County Road 13 project’s water main work. Mr.
Ninow responded that the County needs to officially issue a change order before moving
forward.
6.2 Future Planning
Chair Dietz announced the following:
a. Regular Commission Meeting – June 14, 2022 – Uppertown Conference Room
b. 2022 Governance Agenda
6.3 Other Business
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Commissioner Westgaard provided an update from the City Council including topics such
as a residential land use amendment, hosting of a junior hockey team, and the purchase
of a Zamboni. There was discussion.
Chair Dietz asked for an update on the Highway 169 project from Mr. Geiser. It was
explained there was a little work left to do ontheHighway 10 westbound/Highway 169
northbound ramp. Mr. Geiser informed the commission that this work should be
completed the week of May 16.
Chair Dietz asked Mr. Geiser for an update on the County Road 44 project. There was
discussion.
7.0 ADJOURN REGULAR MEETING
Moved by CommissionerBellandseconded by Commissioner Nadeauto adjournthe regular
meeting of the Elk River Municipal Utilities Commission at 4:05p.m.Motion carried 5-0.
Minutes prepared by Jenny Foss.
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John J. Dietz, ERMU Commission Chair
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Tina Allard, City Clerk
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