Loading...
2.2 ERMUSR 09-13-2022Elk River Municipal Utilities Commission Meeting Minutes August 9, 2022 Page 1 ELK RIVER MUNICIPAL UTILITIES SPECIAL MEETING OF THE UTILITIES COMMISSION HELD AT THE UTILITIES CONFERENCE ROOM August 9, 2022 Members Present: Chair John Dietz, Vice Chair Al Nadeau, Commissioners Mary Stewart, Paul Bell Members Absent: Commissioner Matt Westgaard ERMU Staff Present: Theresa Slominski, General Manager Mark Hanson, Deputy General Manager Melissa Karpinski, Finance Manager Tom Sagstetter, Conservation & Key Accounts Manager Tom Geiser, Operations Director Mike Tietz, Technical Services Superintendent Dave Ninow, Water Superintendent Chris Kerzman, Engineering Manager Tony Mauren, Executive Administrative Manager Jenny Foss, Communication & Administrative Coordinator Others Present: Peter Beck, Attorney; Christy Schallock, Customer Service Representative 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 Bell and seconded by Commissioner Nadeau to approve the August 9, 2022, agenda. Motion carried 4-0 1.4 Recognition of Employee Longevity – Christy Schallock, 8 years Ms. Youngs presented Ms. Schallock, who was celebrating 8 years in ERMU’s customer service department, to the Commission. Ms. Youngs complimented Ms. Schallock’s efforts in coordinating trash services and her calm presence in the organization. 35 Elk River Municipal Utilities Commission Meeting Minutes August 9, 2022 Page 2 Chair Dietz presented the check to Ms. Schallock. At 8 years she qualified for a payment of $1,550 through the Longevity Bonus Pay program, which was approved by the Commission in September 2021. Ms. Schallock shared her appreciation for being part of the organization. 2.0 CONSENT AGENDA (Approved By One Motion) Moved by Commissioner Stewart and seconded by Commissioner Nadeau to approve the Consent Agenda as follows: 2.1 Check Register – July 2022 2.2 Regular Meeting Minutes – July 12, 2022 2.3 Special Meeting Minutes – July 29, 2022 2.4 2022 Second Quarter Utilities Performance Metrics Score Card Statistics 2.5 Transmission Transformed Service Rate 2.6 Amendment to MMPA Power Sales Agreement Motion carried 4-0. 3.0 OPEN FORUM No one appeared for open forum. 4.0 POLICY & COMPLIANCE Nothing was presented for policy & compliance. 5.0 BUSINESS ACTION 5.1 Financial Report – June 2022 Ms. Karpinski presented the June 2022 financial report highlighting that compared to June 2021 electric usage was up 8% and water usage was down 6%. Ms. Karpinski added that electric usage year to date is up 1% and water is down 9%, noting that last year’s drought was likely affecting water comparisons. Ms. Karpinski explained that the net loss in the electric financials is due to purchased power costs and the Energy Adjustment Clause (EAC). She stated the variance to budget for the EAC year to date is $2.1 million whereas the prior year was around $2 million. 36 Elk River Municipal Utilities Commission Meeting Minutes August 9, 2022 Page 3 She added that the electric department is doing a good job keeping expenses close to budget and that water’s budget is strong due in particular to connection fees. Chair Dietz asked a clarifying question about how power cost adjustment charges appear in the budget. Staff responded. Chair Dietz asked if the budget reflected numbers from the recent heat wave. Ms. Karpinski responded those numbers should appear in the July financial report. There was discussion about projections for where financials could be at the end of the year. Chair Dietz noted that the water department was doing well, with expenses down compared to last year. Commissioner Stewart noted in the consent agenda item 2.4 – 2022 Second Quarter Utilities Performance Metrics Score Card Statistics the water loss metric was not met. Staff explained there is still time for that to come into compliance. There was discussion. Moved by Commissioner Nadeau and seconded by Commissioner Bell to receive the June 2022 Financial Report. Motion carried 4-0. 5.2 2022 Second Quarter Delinquent Items Ms. Karpinski presented her memo, noting that write offs are more than last year due to the necessary removal of accounts after they have been in Revenue Recapture for six years. Chair Dietz commented that we seem to be having trouble with collections in apartments. Ms. Karpinski explained ERMU is not able to assess accounts within apartment buildings and that much of what is sent to collection agencies are non-owner accounts. There was discussion. Moved by Commissioner Stewart and seconded by Commissioner Bell to approve the 2022 second quarter delinquent items submitted. Motion carried 4-0. 5.3 2023 Annual Business Plan: Travel and Training; Dues, Subscriptions, and Fees Budget Ms. Karpinski presented her memo previewing a 13% increase in the Travel and Training budget, due partially to additional leadership and strategic planning training, training for the deputy general manager, and training for ERMU’s new attorney. Ms. Karpinski noted a 2% increase to dues and subscriptions. 37 Elk River Municipal Utilities Commission Meeting Minutes August 9, 2022 Page 4 Commissioner Stewart had a question on the Engineer License Renewal line item. Staff responded. Chair Dietz asked for a total dollar increase from 2022 to 2023. Ms. Karpinski explained that the Travel and Training budget was going from about $280,000 to $316,000 and the Dues, Subscriptions, and Fees budget is going from $204,000 to $207,000. Commissioner Bell shared his opinion that the training increase across the total budget is not a significant amount. Chair Dietz asked how much of the increase was for the deputy general manager’s training. Staff calculated that amount to be $4,300. 5.4 Field Services Facility Expansion Project Update Mr. Kerzman presented his memo and noted the good progress that had been made on concrete work at the facility. He added that the final inspection for the fire suppression system would need to be completed before a Temporary Certificate of Occupancy could be issued. Mr. Kerzman shared his opinion that the work is in good shape to meet the August 19 date for that milestone. Chair Dietz asked who would be moving the inventory into the new building. Mr. Kerzman responded that ERMU staff would move the inventory. There was discussion. Chair Dietz asked how many entrances the building was going to have. Staff responded there would be four. 5.5 Summary of General Manager Performance Evaluation Chair Dietz read his summary of the General Manager Performance Evaluation. Moved by Commissioner Nadeau and seconded by Commissioner Stewart to approve the Summary of the General Manager Performance Evaluation. Motion carried 4-0. 5.6 County Road 13 Reconstruction Project Update Ms. Slominski provided the background on the topic; working with the county and project contractor to find an agreed upon price for the County Road 13 Reconstruction project. Ms. Slominski explained that staff believes there are costs being passed along to ERMU due to inefficient project management, in particular for 181 feet of road removal that only became necessary due to a disregard of the preplanning notes. Ms. Slominski explained that staff had identified the linear foot cost for that 181 feet to be $14,556 which staff felt should be subtracted from the invoice amount of about $212,000. 38 Elk River Municipal Utilities Commission Meeting Minutes August 9, 2022 Page 5 Ms. Slominski explained that negotiations with the involved parties had included the suggestion that since the Commission had approved a not-to-exceed amount of $261,882 in November of 2021 they should accept the invoice for $212,000. Ms. Slominski stated that she did not believe ERMU should be responsible for that amount. Commissioner Bell stated his agreement with Ms. Slominski. Ms. Slominski explained the Lee referred to in an attached email is Lee Elfering of Elfering and Associates, a contractor hired by ERMU to provide oversight on the project. Chair Dietz stated his agreement with staff’s position. Moved by Commissioner Bell and seconded by Commissioner Nadeau to authorize payment amount to Sherburne County of $198,431.56 for water main pipe relocation and insulating work for the CSAH 13 project. Motion carried 4-0. 6.0 BUSINESS DISCUSSION 6.1 Staff Updates Ms. Slominski shared with the Commission that both Peter Beck and Jared Shepherd would be attending the September meeting as Mr. Shepherd looks to take over the utility’s attorney duties from Mr. Beck upon his retirement. Commissioner Stewart requested that Mr. Hanson provide his own update on what he has been learning to the Commission in September. Mr. Sagstetter informed the Commission that he has been researching a replacement for the DC fast charger as the vendor no longer supports that model. He added that ERMU is looking to add a level two charger at the new field services building. There was discussion. Mr. Mauren informed the Commission they had been provided physical and electronic itineraries for the MMUA Summer Conference, occurring August 22-24. Mr. Tietz shared with the Commission that the Advanced Metering Infrastructure (AMI) team had selected Core & Main, a distributor for Sensus AMI systems, as the vendor for the project. Mr. Tietz added that staff is working with Core & Main on an acceptance letter, has provided them a notice of intent to award contract with 13 must-have items called out, and is waiting on a signed copy. Mr. Kerzman informed Commissioner Stewart he would be following up with her to schedule a meeting of the Information Security Committee. 39 Elk River Municipal Utilities Commission Meeting Minutes August 9, 2022 Page 6 6.2 City Council Update Chair Dietz provided an update from the City Council highlighting topics such as residential traffic issues, City budget, Night to Unite, park dedication, and property development. 6.3 Future Planning Chair Dietz announced the following: a. Regular Commission Meeting – September 13, 2022 b. Quorum – MMUA Summer Conference – August 22-24, 2022 c. 2022 Governance Agenda 6.5 Other Business There was no other business. 7.0 ADJOURN REGULAR MEETING Moved by Commissioner Bell and seconded by Commissioner Nadeau to adjourn the regular meeting of the Elk River Municipal Utilities Commission at 4:10 p.m. Motion carried 4-0. Minutes prepared by Tony Mauren. ___________________________________ John J. Dietz, ERMU Commission Chair ___________________________________ Tina Allard, City Clerk 40