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04-09-2024 ERMU MINELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION HELD AT THE UPPERTOWN CONFERENCE ROOM April 9, 2024 Members Present: Chair John Dietz, Vice Chair Mary Stewart, Commissioners Paul Bell, Matt Westgaard, and Nick Zerwas ERMU Staff Present: Mark Hanson, General Manager Sara Youngs, Administrations Director Melissa Karpinski, Finance Manager Chris Sumstad, Electric Superintendent Mike Tietz, Technical Services Superintendent Dave Ninow, Water Superintendent Chris Kerzman, Engineering Manager Tony Mauren, Governance & Communications Manager Jenny Foss, Communications & Administrative Coordinator Parker Theisen, IT/OTTechnician Others Present: Jared Shepherd, Attorney 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 Moved by Commissioner Zerwas and seconded by Commissioner Westgaard to approve the April 9, 2024, agenda. Motion carried 5-0. 1.4 Resolution Recognizing 2024 Drinking Water Week Mr. Ninow presented his memo on 2024 Drinking Water Week, occurring May 5-11. Mr. Ninow explained that this event is a great time to promote awareness of the value of safe drinking water and acknowledge the exceptional work ERMU staff does every day to bring customers high quality drinking water. Elk River Municipal Utilities Commission Meeting Minutes April 9, 2024 Page 1 Moved by Commissioner Bell and seconded by Commissioner Stewart to adopt Resolution 24-3 Recognizing Drinking Water Week, May 5-11, 2024. Motion carried 5-0. 1.5 Resolution Recognizing 2024 Lineworker Appreciation Day Mr. Sumstad presented his memo on 2024 Lineworker Appreciation Day. Mr. Sumstad noted that this event provides an opportunity to recognize the important work of ERMU lineworkers in maintaining electric service for our community and highlighted their willingness to help other utilities through mutual aid when needed. Moved by Commissioner Zerwas and seconded by Commissioner Bell to adopt Resolution 24-4 Recognizing Lineworkers and Designating April 18, 2024, as Lineworker Appreciation Day. Motion carried 5-0. 2.0 CONSENT AGENDA (Approved By One Motion) Moved by Commissioner Westgaard and seconded by Commissioner Stewart to approve the Consent Agenda as follows: 2.1 Check Register — Mach 2024 2.2 Special Meeting Minutes — March 12, 2024 2.3 Regular Meeting Minutes — March 12, 2024 2.4 Resolution Electing Not to Waive Statutory Tort Limits for Liability Insurance Motion carried 5-0. 3.0 OPEN FORUM No one appeared for open forum. 4.0 POLICY & COMPLIANCE 4.1 Commission Policy Review — G.2d — Commission Member Role, Responsibilities, and Orientation Mr. Mauren presented policy G.2d — Commission Member Role, Responsibilities, and Orientation for commission review. There were no questions, comments, or proposed changes from the commission regarding this policy. Elk River Municipal Utilities Commission Meeting Minutes April 9, 2024 Page 2 5.0 BUSINESS ACTION 5.1 Financial Report —February 2024 Ms. Karpinski presented the financial report for February 2024. It showed that electric usage was down 5% YTD and water was up 1% YTD. Ms. Karpinski made the observation that in general residential electric usage is down with numbers similar to those from January and February of 2018 through 2020. Electric is behind prior year but favorable to budget. Water is ahead of prior year and favorable to budget mainly due to increased usage and high connection fees in January. Chair Dietz asked Mr. Ninow the source of January's connection fees. Mr. Ninow stated there were a couple projects with Great River Energy that required a connection. Moved by Commissioner Westgaard and seconded by Commissioner Stewart to receive the February 2024 Financial Report. Motion carried 5-0. 5.2 Private Line Repair Costs for AMI Project Ms. Youngs presented the memo regarding private line repair costs for the Advanced Metering Infrastructure (AMI) Project on Mr. Hanson's behalf, who was attending the commission meeting remotely while out of state for the American Public Power Association's (APPA) Lineworkers Rodeo. Ms. Youngs stated the AMI installation contractor, Allegiant Utility Services, has informed ERMU that some residential properties may require repairs to private utility infrastructure before the meter can be replaced. For electric meter installation this may include the repair or replacement of the meter box. For water meter installation this may include the repair or replacement of the in -home shut off valve. Ms. Youngs noted that according to Allegiant most utilities they have worked with view these repairs as the "cost of doing business" when taking on a system -wide meter replacement project such as AMI. Allegiant observed that the utilities who choose to absorb the costs for these repairs have better scheduling response, fewer complaints, and higher overall customer satisfaction throughout the project. Ms. Youngs explained that to affirm Allegiant's recommendations staff contacted two comparable municipal utilities that are undergoing AMI projects which are similar in size and scope. Both utilities confirmed they chose to absorb the reasonable repair costs related to residential electric and water meter replacements. They also confirmed absorbing these costs resulted in fewer complaints and quicker resolution of issues so the project could keep moving forward. Elk River Municipal Utilities Commission Meeting Minutes April 9, 2024 Page 3 Ms. Youngs asked for commission approval to absorb the electric and water meter repair costs needed to facilitate residential meter replacement. Absorption of these costs would be limited to the AMI project's duration. The commission first voted to approve the request to absorb repair costs related to the AMI project then also directed staff to bring more information to a future commission meeting about options for a repair fund program as discussed. Moved by Commissioner Zerwas and seconded by Commissioner Stewart to approve funding of specific private utility line repairs through AMI project duration. Motion carried 5-0. 5.3 Award of Recloser Bid Mr. Kerzman presented the Award of Recloser Bid memo and the recommendation to award the recloser bid to Border States Electric for 26 substation reclosers, 5 substation frames, and 21 adapter brackets for a total of $573,437.38. Chair Dietz asked if this project was in the 2024 budget. Mr. Kerzman stated it was not and that delivery for this contract would be in 2025. Chair Dietz expressed concerns with the cost and asked if this was a planned project. Mr. Kerzman said it was and the reclosers would be inventoried and assigned against projects listed in future years of the 20-year capital project plan. Moved by Commissioner Stewart and seconded by Commissioner Westgaard to adopt Resolution 24-6 accepting Border States' bid for 26 substation reclosers and awarding contract. Motion carried 5-0. 6.0 BUSINESS DISCUSSION 6.1 Staff Updates Mr. Hanson gave an update from the APPA Lineworkers Rodeo in Lafayette, LA. Mr. Hanson reported that 64 teams competed in this year's rodeo and that the team from ERMU (Alex P., Matt S., and Tyler M.) earned 498 points out of 500 making this the best score from an ERMU team to date. Mr. Mauren reminded commissioners to check their email for the link to the general manager performance evaluation and to contact him if they did not receive the link. He added that the evaluation was due on May 3. Elk River Municipal Utilities Commission Meeting Minutes April 9, 2024 Page 4 Mr. Ninow informed commissioners that the water department will be gradually beginning flushing a little early this year for the city's 1300 hydrants. He noted that the majority of the project will still take place May 13-22 as originally planned. Water and communications staff are working together to inform the community of the slight change in schedule. Chair Dietz asked if staff plan to use red bags over the hydrants in 2024 instead of clear bags. Mr. Ninow confirmed red bags will be used. Chair Dietz asked if the bags were only used in the urban services area. Mr. Ninow explained they are used mostly in high traffic areas with increased road salt exposure. 6.2 City Council Update Commissioner Westgaard provided an update from the City Council which included discussion regarding a plat adjustment, conditional use permits, possible improvements at 225th Avenue and Highway 169, preliminary proposed missing middle housing legislation, reviewing policy for tax increment financing for housing, and the Main Street and Gates Avenue project. Commissioner Westgaard confirmed that although he will not seek re-election to the Elk River City Council, he does plan to continue serving his full term on the Elk River Municipal Utilities Commission which expires February 28, 2026. There was discussion. 6.3 Future Planning Chair Dietz announced the following: a. Regular Commission Meeting— May 14, 2024 b. 2024 Governance Agenda 6.5 Other Business Chair Dietz asked if there was any water and sewer work being done by ERMU staff as part of the Highway 169 Redefine project at Main Street and Highway 169. Mr. Ninow replied that there is work being done on both an active and an abandoned water main in that area. 7.0 ADJOURN REGULAR MEETING Moved by Commissioner Zerwas and seconded by Commissioner Westgaard to adjourn the regular meeting of the Elk River Municipal Utilities Commission at 4:09 p.m. Motion carried 5-0. Elk River Municipal Utilities Commission Meeting Minutes April 9, 2024 Page 5 Minutes prepared by Jenny Foss. Commission Chair Tina Allard, City Clerk Elk River Municipal Utilities Commission Meeting Minutes April 9, 2024 Page 6