01-14-2025 ERMU MIN SPECIAL ELK RIVER MUNICIPAL UTILITIES
SPECIAL MEETING OF THE UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
January 14,2025
Members Present: Chair John Dietz,Vice Chair Mary Stewart,Commissioners Matt Westgaard,
and Nick Zerwas
Remote Members: Commissioner Paul Bell participated in the meeting via interactive television
as he was out of the state at the time of the meeting.
ERMU Staff Present: Mark Hanson,General Manager
Sara Youngs,Administrations Director
Melissa Karpinski, Finance Manager
Tony Mauren,Governance&Communications Manager
Tom Geiser,Operations Director
Dave Ninow,Water Superintendent
Chris Sumstad, Electric Superintendent
Mike Tietz,Technical Services Superintendent
Jenny Foss,Communications&Administrative Coordinator
Others Present: Jared Shepherd,Attorney;
1.0 GOVERNANCE
1.1 Oath of Office-Matt Westgaard
1.2 Call Meeting to Order
The regular meeting of the Utilities Commission was called to order at 3:30 p.m. by Chair Dietz.
1.3 Pledge of Allegiance
The Pledge of Allegiance was recited.
1.4 Consider the Agenda
Moved by Commissioner Westgaard and seconded by Commissioner Stewart to approve the
January 14,2025,agenda. Motion carried 5-0.
2.0 CONSENT AGENDA(Approved By One Motion)
Moved by Commissioner Stewart and seconded by Commissioner Bell to approve the
Consent Agenda as follows:
2.1 Check Register—December 2024
2.2 Special Meeting Minutes—December 10,2024
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January 14, 2025
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Motion carried 5-0.
3.0 OPEN FORUM
No one appeared for open forum.
4.0 POLICY&COMPLIANCE
4.1 Commission Policy Review—G.3c—General Manager Accountability
Mr. Mauren presented his memo regarding G.3c—General Manager Accountability. There
were no recommended changes from staff.
Chair Dietz asked if the Commission had any authority over employee hiring and firing.
Mr. Shepherd referenced bullet point two under G.3c, which states: "The Commission as a
body and the Commission members individually will refrain from evaluating, either
formally or informally,the job performance of any employee other than the General
Manager." He clarified that if there is an issue with an employee,the concern should be
addressed as an issue with the general manager's oversight and management of the
situation.
Mr. Mauren noted that the policy does not prohibit commissioners from asking general
questions or requesting information from staff other than the general manager when
appropriate to streamline communication.
Mr. Hanson added that regardless of who raises concerns,the general manager or the
Commission, it is the general manager's responsibility to address them,which will then be
part of the general manager's performance evaluation. He clarified that employee
matters follow a communication process with the Commission but the actual hiring and
firing falls under the authority of the general manager.
4.2 Annual Review of Committee Charters
Mr. Mauren presented the Annual Review of Committee Charters for commission review
to determine if any changes are required. He noted the only update to these policies
during the last calendar year was approved in February 2024, aligning the Dispute
Resolution Committee language with other charters by stating all meetings will follow
Open Meeting Law.
Chair Dietz asked if the Dispute Resolution Committee had ever been used. Mr. Mauren
replied it had not.
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January 14, 2025
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Chair Dietz questioned the need for the Committee if it has never been utilized.
Mr. Hanson commented that he should have used the Dispute Resolution Committee in a
recent issue involving a business owner and their Advanced Metering Infrastructure (AMI)
water meter changeout but believed it was only intended for billing issues.
Commissioner Westgaard asked if the Dispute Resolution Committee is limited to
customer issues.
Mr. Hanson clarified the language is currently for customer disputes and asked if there
was interest in changing the language.
The Commission chose not to make any changes at this time.
Ms. Youngs added that while the Committee is in place for billing disputes, its lack of use
reflects the organization's success in resolving issues with customers before dispute
resolution becomes necessary.
Commissioner Westgaard asked when names will be assigned to the committees. Mr.
Mauren confirmed that it will take place in March.
5.0 BUSINESS ACTION
5.1 Financial Report—November 2024
Ms. Karpinski presented the November 2024 Financial Report, highlighting strong
performance in both electric and water. She noted that the Energy Adjustment Clause
from the Minnesota Municipal Power Association was slightly under the budgeted rate for
the year. She also stated that increased connection fees and interest income from
investments helped offset lower electric and water usage.
There was discussion regarding revenue loss due to lack of water usage.
Ms. Karpinski stated that budgeting for water is based on a multi-year average and noted
that over$300K from the water tower lease will be recognized in December.
Commissioner Westgaard requested clarification on the variance to the budget under
Other Operating Expenses for both electric and water.
Ms. Karpinski explained that the variance was due to a loss from the disposition of
property related to AMI meters.
Moved by Commissioner Westgaard and seconded by Commissioner Stewart to receive
the November 2024 Financial Report. Motion carried 5-0.
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January 14, 2025
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5.2 Advanced Metering Infrastructure Update
Mr.Tietz provided a thorough review of his AMI update.
Chair Dietz asked for clarification regarding which budget was impacted by the$16,000
approved for the commercial curb stop repair discussed at the December meeting.
Mr. Hanson explained that the expense was charged to the overall AMI project budget,
not the commission approved funds allocated for residential repairs within the project.
Mr.Tietz stated that he received information just prior to the commission meeting that
the first shipment of polyphase meters will arrive in March.
Chair Dietz inquired about the overtime installation option related to the AMI project
citing a recent conversation he had with a local business owner.
Mr. Hanson clarified that the overtime installation option is available for commercial
customers who specifically request it,with those customers responsible for the overtime
costs. It is not an option that is offered by the utility or its approved contractor.
Commissioner Westgaard asked if it was normal for a multi-use building to have only one
meter. Mr. Ninow confirmed that it is per ERMU policy.
6.0 BUSINESS DISCUSSION
6.1 Staff Updates
Mr. Hanson previewed infrastructure ownership comparison data that he will present in full at
the February commission meeting. Of the 50 cities reviewed, 21 are similar to ERMU,while 29
differ in that the city owns infrastructure up to the curb stop.
Mr. Mauren confirmed that commission meetings start at 3:30 p.m. He clarified that the 3:00
p.m. meeting invite start time includes a 30-minute buffer for conference room setup. He
stated that he would update future invites to avoid confusion.
Mr. Mauren also asked if the Commission finds value in the mid-month update and
commission meeting recap.The Commission confirmed both are appreciated and requested
they continue.
Mr. Geiser reported on two recent incidents in which a car hit a utility pole causing power
outages. He commended staff for restoring service quickly and safely.
Mr.Tietz noted that the first 10 of 30 reclosers affected by the manufacturer safety alert have
been returned.
Elk River Municipal Utilities Commission Meeting Minutes
January 14, 2025
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Mr. Ninow announced that members of the National Weather Service will visit ERMU on
January 29 to present staff with an award recognizing 75 years of partnership on the
Cooperative Observer Program (COOP)Weather Station.
6.2 City Council Update
Chair Dietz provided a city council update.
6.3 Future Planning
Chair Dietz announced the following:
a. Regular Commission Meeting—February 11, 2025
b. 2025 Governance Agenda
6.5 Other Business
Commissioner Westgaard asked for a status update on the power plant project.
Mr. Hanson confirmed the project is still with the architect and he hopes to have a
proposal to bring forward in February.
Commissioner Westgaard also asked about the status of home occupation utility rates.
Mr. Hanson stated that the utility would follow the City's decision, as directed by the
Commission. He added that lengthy discussions with city staff concluded with the City
deciding not to make any changes at this time.There was discussion.
Chair Dietz commended Mr. Geiser and his crew for their work in removing two trees on
Main Street at the Field Services Building
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 4:18 p.m.Motion carried
5-0.
inut r are yJenny Foss.
J U Commission Chair
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Tina Allard,City Clerk
Elk River Municipal Utilities Commission Meeting Minutes
January 14, 2025
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