2.2 ERMUSR 01-09-2024Chair Dietz asked if participating customers will be informed of the new sunset date if
approved. Ms. Youngs confirmed they would.
Chair Dietz asked if any new customers were being added to these programs. Ms. Youngs
replied there are no new customers being added as the program is in a moratorium.
Moved by Commissioner Westgaard and seconded by Commissioner Stewart to approve
extension of a sunset date from December 31, 2023, to December 31, 2025, for the Dual
Fuel, Electric Thermal Storage Water, and Electric Thermal Storage Space Heating programs.
Motion carried 5-0
5.0 BUSINESS ACTION
5.1 Financial Report —October 2023
Ms. Karpinski presented the October 2023 financial report in which she highlighted that
there will be no Power Cost Adjustment on customers' December bill due to a lower -than -
expected Energy Adjustment Clause from the Minnesota Municipal Power Agency. Ms.
Karpinski also noted that there were a couple budgets over the 10% threshold.
Commissioner Westgaard asked if we will need to rework the capital budget moving
forward to account for the overages. Ms. Karpinski stated that Mr. Geiser was diligent in
adjusting other projects that offset the overages.
Commissioner Stewart inquired about the industrial loads and megawatt hour graphs
noting the sudden peak in November. There was discussion. Commissioner Stewart
requested a footnote on the December financial report and graphs related to any
corrections.
Moved by Commissioner Bell and seconded by Commissioner Zerwas to receive the
October 2023 Financial Report. Motion carried 5-0.
5.2 2024 Annual Business Plan — Budget and Schedule of Rates & Fees
Ms. Karpinski presented the 2024 Annual Business Plan and opened it up to the
Commission for questions or comments, highlighting the proposed zero percent rate
increase for electric rates and two percent increase for water rates in 2024.
Commissioner Stewart noted that the Minnesota Municipal Power Agency has proposed a
zero percent rate increase however they will not officially approve their budget until the
following week.
Moved by Commissioner Westgaard and seconded by Commissioner Stewart to adopt
the 2024 Annual Business Plan. Motion carried 5-0.
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December 12, 2023
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5.3 Compensation Study Update
Mr. Hanson presented the compensation study update with staff making a recommendation
to enter into an agreement for services with Baker Tilly.
There was consensus by the commission to move forward with this recommendation.
Moved by Commissioner Zerwas and seconded by Commissioner Bell to approve
Compensation Study Professional Services Agreement with Baker Tilly. Motion carried
5-0.
5.4 Earned Sick and Safe Time Policy
Mr. Hanson presented the Earned Sick and Safe Time policy as it relates to Minnesota's new
law that goes into effect January 1, 2024. Mr. Hanson stated that ERMU's current policy
meets the state requirement, but the new law requires a broader definition of what is
allowable use. Additionally, the law requires ERMU to provide Earned Sick and Safe Time to
seasonal and temporary workers which is new for the organization.
Chair Dietz asked if the new rules are broader in what time off can be used for and if there
are concerns there will be abuse of the new policy. Mr. Hanson confirmed the new law is
broader however there is confidence staff will not abuse the policy.
Commissioner Westgaard asked how staff will manage employees being absent if under the
new law employees do not have to give prior notice for time off. Mr. Hanson clarified that the
new law only applies to sick time.
Commissioner Westgaard asked if new language would need to be adopted stating that
Earned Sick and Safe Time must be used to cover the two -week period before short term
disability would take effect. Mr. Hanson explained how the current policy addresses this.
Mr. Hanson asked the Commission to adopt the updated policy as it is today to be compliant
with the new Minnesota law on January 1, 2024, with amendments possible in the future.
Commissioner Westgaard asked if the Earned Sick and Safe Time is accrued or frontloaded.
Ms. Zachman stated it would be accrued.
Moved by Commissioner Zerwas and seconded by Commissioner Stewart to approve
the ERMU Paid Sick and Safe Leave Policy. Motion carried 5-0.
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December 12, 2023
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6.0 BUSINESS DISCUSSION
6.1 Staff Updates
Mr. Hanson brought forth a compliment he received from an Elk River resident via city staff
about the new Dodge Street lighting. Mr. Hanson expressed his appreciation for the work done
by Mr. Geiser and Mr. Sumstad on this project. The resident was originally not in favor of
adding streetlights and now is very appreciative of them.
Following up on a topic from the November meeting, Chair Dietz commented that Mr. Rohlf
from Cornerstone Auto was very appreciative of the contractor bids received from ERMU to
correct the water main issue at the company's new quick lube location. Mr. Hanson confirmed
that the water main has been completely corrected and the issue is resolved.
Mr. Tietz noted that plugs for engine #4 have arrived after eight months on backorder which
will allow staff to reassemble the engine.
Chair Dietz asked if staff still runs the engines once a month. Mr. Tietz stated that they were
not run this fall but that is the intention.
Chair Dietz asked what the old field services office building is intended to be used for with staff
now utilizing the new facility. Mr. Kerzman explained the garage stalls are used for equipment
and the office area is currently being used for additional storage.
6.2 City Council Update
Commissioner Westgaard provided an update from the City Council covering topics including
development proposals, home occupation ordinance, 2024 budget and levy discussions, and
the new floodplain ordinance updated from the DNR floodplain definitions.
6.3 Future Planning
Chair Dietz announced the following:
a. Regular Commission Meeting —January 9, 2024
b. 2024 Governance Agenda
6.5 Other Business
There was no other business.
7.0 ADJOURN REGULAR MEETING
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December 12, 2023
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Moved by Commissioner Bell and seconded by Commissioner Westgaard to adjourn the
regular meeting of the Elk River Municipal Utilities Commission at 4:30 p.m. Motion carried
5-0.
Minutes prepared by Jenny Foss.
John J. Dietz, ERMU Commission Chair
Tina Allard, City Clerk
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December 12, 2023
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