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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: Elk River Municipal Utilities Commission Meeting Minutes May 10, 2022 Page 1 34 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. Elk River Municipal Utilities Commission Meeting Minutes May 10, 2022 Page 2 35 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. Elk River Municipal Utilities Commission Meeting Minutes May 10, 2022 Page 3 36 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. Elk River Municipal Utilities Commission Meeting Minutes May 10, 2022 Page 4 37 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 Elk River Municipal Utilities Commission Meeting Minutes May 10, 2022 Page 5 38 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. ___________________________________ John J. Dietz, ERMU Commission Chair ___________________________________ Tina Allard, City Clerk Elk River Municipal Utilities Commission Meeting Minutes May 10, 2022 Page 6 39