4.1 ERMUSR 03-11-2025UTILITIES COMMISSION MEETING
TO:FROM:
ERMU Commission Tony Mauren – Governance & Communications Manager
MEETING DATE: AGENDA ITEM NUMBER:
March 11, 2025 4.1
SUBJECT:
Annual Commissioner Orientation
ACTION REQUESTED:
None
BACKGROUND:
Commission Policy G.2d – Commission Member Role, Responsibilities, and Orientation
describes the role and responsibilities of commissionersoperating as a governing body in
accordance with applicable law. The Commission also establishes its expectations for the
orientation of new commission members.
As stated in the policy, “The ERMU Commission is committed to excellent governance. This
requires that individual Commissioners be well-informed about ERMU, its customers and
stakeholders, the utility business, prudent financial management, and the Commission’s own
governance structure and processes.” Consistent with this commitment and commission
policies, an annual orientation program for new and existing commission members was
implemented in 2018.
This year’s orientation will offer a presentation from Frontier Energy with updates on ERMU’s
Conservation Improvement Program as well as a presentation from staff on ERMU’s
Communication efforts.
Attached is a review and summary of the Commission Policy manual and Reference Guide
updates from the previous 12 months. Please note that these updates are published as they are
approved throughout the year.
COMMISSIONER POLICY AND REFERENCE GUIDE UPDATES:
1. Updated Commission Policies
G.2c – Agenda Planning
G.2e – Commission Member Conduct
G.4f1 – Employee Handbook
G.4g1 – Performance Metrics and Incentive CompensationPolicy
G.3d – Monitoring Performance of the General Manager
G.3e – General Manager Performance Planning and Evaluation
______________________________________________________________________________
Page 1 of 2
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2.Updates toCommission Reference Guide
2025 Governance Agenda
2025 ERMU Organizational Chart
2025 ERMU Staff Roster - On file with the Governance Manager
2025 Utilities Commission Member Listing
2025 Utilities Commission Meeting Schedule
2025 Upcoming Events
2025 Travel Expense Guidelines for Commissioners
ATTACHMENTS:
Summary Commission Policy and Reference Guide Updates for 2025
Updated Reference Guide items listed above
______________________________________________________________________________
Page 2 of 2
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SUMMARY COMMISSION POLICY AND REFERENCE GUIDE UPDATES FROM THE PREVIOUS 12 MONTHS
POLICY
G.2c – Agenda Planning– March 12, 2024 – Commission approved updated language to bringthe
policy’s stated schedulein line with the current Commission Governance Agenda.
G.2e – Commission Member Conduct – May 14, 2024 – Commission approved language requiring
commissioners to be compliance with the City’s commissioner attendance policy.
G.4f1 – Employee Handbook – July 9, 2024 –The changes are:
Revise Date in footer and on cover page.
Revise Table of Contents and page numbers.
Eliminate gendered language.
Update “marijuana” to “cannabis” to match current legal terminology.
Update “Employer” with “the Utilities” for consistency throughout handbook.
Revise Section 3. Equal Employment Opportunity, to include language from the Crown Act.
Revise Section 5. Harassment Prohibited, to include language from the Crown Act, language on
types of harassment, scope of policy, and the employee’s reporting responsibility.
Revise Section 6. Business Conduct, to include added employee expectation.
Revise Section 13. Commitment to a Drug and Alcohol-Free Workplace, to reflect the new
cannabis legalization.
Revise Section 14. Exposure to Hazardous Substances, to update the Minn Stat. referenced.
Revise Section 17. Supplemental Employment, to include added employee expectations.
Revise Section 19. Attendance, to update language that aligns with ERMU’s revised Paid Sick
Leave Policy.
Revise Section 20. Discipline, Dismissal & Layoff, to add language about Policy’s intent.
Revise Section 22. Performance Reviews, to update language on Performance Metrics Incentive
eligibility.
Revise Section 23. Work Hours, Overtime, and Compensatory Time, to add language on
eligibility.
Revise Section 37. Night Work and Rest Time, to include updated paid rest time amounts earned
for night work.
Revise Section 40. Vacation, to include updated vacation accruals.
Revise Section 43. Paid Sick Leave, to include all new provisions of Minnesota’s new Employee
Sick and Safe Time law.
Revise Section 44. Employee Clothing, to update the annual clothing allowance for office staff.
Revise Section 45. Health Care Savings Plan, to add the percentage of paid sick leave conversion
to post-employment HCSP at time of retirement.
Revise Section 46. 457 Deferred Compensation, to remove language on the Governor’s salary
cap (repealed 2023).
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Revise Section 47. Health Insurance Coverage, to reflect cost increase.
Add Section 55. The Family and Medical Leave Act.
Remove Section 56. Minnesota Sick Family Member or Safety Leave (section has been replaced
with Paid Sick and Safe Time (section 43). Theunderlying statue has been repealed).
Revise Section 63. Bereavement Leave, to include more inclusive language for relations that
qualify for three days of leave and a one-day tier for aunts, uncles, cousins, nieces and nephews.
Revise Section 66. Paid Leave Donation, to remove Finance Manager as approver.
G.4g1 – Performance Metrics and Incentive Compensation – December 10, 2024 – Commission
approved the following:
• Reduction of the maximum percentage awarded from 3% to 2%.
• Introduction of more challenging goals for two electric criteria (SAIDI and SAIFI) and the
inventory accuracy criteria.
• Addition of a Strategic Plan Category, including a Dashboard Progress Sub-Category.
• Addition of a Communication/Customer Service Category, including Clean Energy Choice
Program Participation and Conservation Improvement Program (CIP) Sub-Categories.
• Removal of the Financial Reserves criteria.
G.3d – Monitoring Performance of the General Manager – February 11, 2025 – The Commission
approved a correction to the policy which refers to a biennial governance agenda which has since been
changed to an annual governance agenda.
G.3e – General Manager Performance Planning and Evaluation – February 11, 2025 – The Commission
approved a wording change from “…his/her reasonable interpretation…” to “their reasonable
interpretation…” to utilize gender neutral language.
REFERENCE GUIDE
2025 Governance Agenda – No changes from the previous year.
2025 Organizational Chart – Changes from 2024include:
With the departure of the engineering manager, the IT/OT technician wasmoved under the
administrations director while the GIS/mapping technician is now under the operations
director. This also creates a vacant system engineer position which will workunder the
technical services superintendent as an individual contributor.
There-establishment of a lead water operator position and internal promotion created a
vacant water operator position which has been posted.
The formerly titled and vacant conservation & key accounts specialist position under the
administrations director has been re-titled as administrative specialist.
2025 ERMU Staff Roster – On file with the governance & communications manager.
2025 Utilities Commission Member Listing – No change for 2025. This document provides contact
information and terms for commission members.
66
2025 Utilities Commission Meeting Schedule – Commission meetings, with two exceptions in 2025,
will take place at 3:30 p.m. on the second Tuesday of each month in the Utilities Conference Room.
The June 2025 meeting will be held on the first Tuesday of the month at the regular time and
placeto ensure a quorum, with commissioners expected to attend a conferenceduring the
regular date.
The November 2025 meeting will be held on the second Wednesday of the month due to
the Veterans Day office closure.
2024 Upcoming Events – The Sherburne County Parade is scheduled for Saturday, July 18; The
Minnesota Municipal Power Agency Annual Meeting date and location is to be determined; The
Minnesota Municipal Utilities Association’s Summer Conference is scheduled for August 18-20 in
Rochester.
2025 Travel Expense Guidelines – The only change is an increase in the business mileage
reimbursement rate from 67 cents to 70cents.
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2025GOVERNANCE AGENDA
Tuesday, January 14:Tuesday, February 11:
Annual Review of Committee ChartersReview Strategic Plan and 2024 Annual Business
Plan Results
Tuesday, March 11:Tuesday, April 8:
Oath of OfficeAudit of 2024 Financial Report
Election of OfficersFinancial Reserves Allocations
Annual Commissioner Orientation and ReviewReview 2024 Performance Metrics
Governance Responsibilities and Role
Tuesday, May 13:Tuesday, June 3:
Annual General Manager PerformanceAnnual Commission Performance Evaluation
Evaluation and Goal Setting
Tuesday, July 8:Tuesday, August 12:
Review and Update Strategic PlanAnnual Business Plan – Review Proposed 2026
Travel, Training, Dues, Subscriptions, and Fees
Budget
Tuesday, September 9:Tuesday, October 14:
Annual Business Plan – Review Proposed 2026Annual Business Plan – Review Proposed 2026
Capital Projects BudgetExpenses Budget
Wednesday, November 12:Tuesday, December 9:
Annual Business Plan - Review Proposed 2026Adopt 2026 Official Depository and Delegate
Rates and Other RevenueAuthority for Electronic Funds Transfers
Adopt 2026 Fee ScheduleDesignate Official 2026 Newspaper
2026 Stakeholder Communication PlanApprove 2026 Regular Meeting Schedule
Adopt 2026 Governance Agenda
Adopt 2026 Annual Business Plan
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Electric & Water
Customers
Utilities
Commission
General Manager
202 Organizational Chart
Last Updated November 5, 2024
45 of 48 FTE
Human Resources
Generalist
Administrations
Operations DirectorFinance Manager
Director
GIS/Mapping
IT/OT
Accountant
Coordinator
Technician
AP & Payroll
Governance &
Specialist
Water Technical Services Electric
Communications
Superintendent SuperintendentSuperintendent
Manager
Communications
Water Operations System Engineer
Line Crew
& Administrative
Foreperson (vacant)
Foreperson
Coordinator
Lead Water
Substation
Operator
Apparatus
Lead Lineworker Lineworker
Billing Specialist
Technician
Electrician/Electrical
Credit & Collections
Water Operator
Lead Lineworker Lineworker
Technician
Specialist
Administrative
Electrical
Water Operator
Specialist
Lead Lineworker Lineworker
Technician
(vacant)
(vacant)
Lead Customer
Water Utility
Service
Locator
Lead Lineworker Lineworker
Worker
Representative
Customer Service
Lineworker
Locator
Representative
Customer Service
Lineworker
Representative
Customer Service
Field Crew
Representative
Foreperson
Lead Bore Rig
Bore Rig Operator
Operator
Inventory &
Procurement
Foreperson
Inventory &
Procurement
Assistant
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70
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Travel Expense Guidelines for Commissioners
Meals
Food allowances are actual expenditures for meals and gratuity, excluding alcoholic beverages.
When employees travel and incur expenses to be reimbursed for meals, please use the following
guidelines for spending. This spending amount is based on the IRS established “per diem” amounts
for general spending of travelling individuals. Itemized receipts must be submitted for
reimbursement.
When travelling for the entire day, the maximum to be reimbursed per day is $55. That can be
distributed as $10 for breakfast, $20 for lunch, and $25 for dinner. This distribution per day is
variable, as long as the maximum is not exceeded. For example, if $5 is spent on breakfast, $30
could be spent on dinner. If there are multiple days involved, the distribution per days is also
variable. For example, if $45 is spent one day, $65 could be spent the next day.
If you are travelling for a partial day, and only one or two meals are involved, please use the
guideline amounts per meal: $10 for breakfast, $20 for lunch, and $25 for dinner.
If you are at an event where the meal is provided and included in the fee for the event, please have
that meal unless there are extenuating circumstances why you cannot (such as allergies to certain
foods.)
Additionally, the IRS has established per diems for specific geographic areas of high cost. High cost
areas are $76 per day, versus $55. So the per diem amount is different for Washington, DC (a
designated high cost area) than Elk River, MN. If you are travelling to areas outside of Minnesota,
and are concerned you may be visiting a high cost area, please feel free to visit the IRS website for a
listing of these areas.
Mileage
The 202 business mileage reimbursement rate is cents per mile.
Compensation
Members of the Commission representing ERMU at meetings/conferences that are in addition to
the commission meetings will receive a $75 per day stipend.
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Energy Conservation Programs
Update March 11, 2025
PRESENTED AT MEETING - FRONTIER ENERGY
Overview
Highlights
2024 Results
Commercial/Industrial Customers
Past Results and 2024-2026 Progress
How we serve ERMU and your customers
2024 2025 2026
PRESENTED AT MEETING - FRONTIER ENERGY
Highlights - 2024
•Achieved the Total Energy Savings Goal for the first time in seven years.
•Total Spending per kWh Delivered was 15% less than previous 8-year average.
○2024 results: $0.108 spent per kWh delivered.
○2016 -2023 average: $0.127 spent per kWh delivered.
•ERMU had 599 recipients and $207,368 in direct rebates back to customers.
•$500,000+ in projected annual utility cost savings for your customers.
•50+ commercial and industrial customer interactions.
○Audits, utility bill questions, recommendations and cost savings analysis, rebates and other programs,
solar questions, working with contractors, general energy conservation advice.
•P3 Software and energy savings tracking system commissioning completed.
PRESENTED AT MEETING - FRONTIER ENERGY
2024 Energy Conservation Program Results
PRESENTED AT MEETING - FRONTIER ENERGY
2024 Commercial and Industrial Projects
Customer Description Count
Submitted
Date
Rebate
Amount
kW
Savings
kWh
Savings
Wings Financial Credit Union Parking Lot Lighting Retrofit 1 03/11/24 $518.77 3.38 14,822
Furniture & Things Interior Lighting 2 03/19/24 $90.40 0.55 2,583
Fantastic Sams Interior Lighting 3 03/20/24 $304.79 2.65 8,708
Jonny Pops Interior & Exterior Lighting Retrofit 4 03/25/24 $4,029.70 37.65 115,134
Clear Sky Apartments New Construction 5 03/25/24 $11,637.22 26.89 224,958
Product Design Services Remodel 6 04/05/24 $4,646.99 35.40 132,771
Sonic Refrigeration 7 05/23/24 $41.20 0.00 1,177
United Health Group Lighting Controls 8 06/28/24 $20,193.09 52.42 576,946
Timron Precision Gear Lighting & Heat Pump 9 07/09/24 $636.89 3.66 11,806
Guardian Angels Homes Lighting 10 08/05/24 $169.62 1.68 4,846
Guardian Angels Care Center Lighting 11 08/05/24 $108.69 1.08 3,106
Cowboy Jacks Lighting 12 08/05/24 $466.03 3.04 13,315
Enterprise Rent-A-Car Lighting 13 08/06/24 $18.06 0.12 516
Gym 365 Lighting 14 08/07/24 $1,083.22 3.74 30,949
United Health Group UPS 2 15 08/13/24 $17,340.04 56.56 495,430
United Health Group UPS 4 16 08/13/24 $17,714.62 57.78 506,132
Delta Apts - 1 New Construction 17 08/13/24 $9,130.47 57.96 253,369
Delta Apts - 2 New Construction 18 08/13/24 $9,131.47 57.96 253,369
Furniture & Things Lighting 19 09/05/24 $601.66 3.51 17,190
Distinctive Iron Compressed Air 20 09/05/24 $410.06 -0.26 11,716
Furniture & Things Lighting 21 11/18/24 $395.51 2.58 11,300
Top Spot Lighting 22 12/16/24 $1,111.02 5.63 31,743
Jonny Pops HVAC & VFD 23 12/20/24 $11,223.27 6.41 320,664
City of Elk River Streetlighting, Well Pumps 24 12/30/24 $0.00 412,865
Total:$111,002.79 420.4 3,455,415
PRESENTED AT MEETING - FRONTIER ENERGY
Commercial/Industrial Highlights
•Multifamily
○Clear Sky Apartments, Delta Apartments
○Pullman Place Cooperative
•Pullman Place – initially reached out with questions on furnace tune ups and resulted in a detailed
multifamily energy audit with direct install and rebates.
•Commercial
○Furniture and Things – frequency of applications
○Top Spot – shop remodel and office remodel
○Product Design Services – energy audit, remodel project, energy rebate
○Deano’s Collision – energy analysis
○Wyndham Garden Otsego – energy audit
PRESENTED AT MEETING - FRONTIER ENERGY
Commercial/Industrial Highlights
•Industrial
○Jonny Pops – energy audit and process efficiency projects.
•Recirculating chiller water reduced energy use per popsicle by 10%.
○UHG – UPS system, exhaust System, lighting controls.
•Air balancing projects saved 40% of HVAC fan power
○Target Tech – VFDs and HVAC controls.
○Heritage Millwork – New construction energy efficiency, dust collector VFD controls.
•We were able to recommend more efficient equipment choices with rebates
○Timron – solar audit and energy rebate.
PRESENTED AT MEETING - FRONTIER ENERGY
Annual kWh Energy Savings – 1.5% vs. Achieved
4,133,512 4,166,765 4,306,231 4,490,283
4,734,577 4,855,289 4,907,874 4,746,471
4,994,857
3,338,144
4,522,151
4,010,155
3,199,352
4,597,290
2,253,972
3,553,314
2,791,863
5,235,601
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024
1.5% kWh Savings Goal kWh Actual
PRESENTED AT MEETING - FRONTIER ENERGY
Annual Spending – 1.5% vs. Actual
$444,402
$385,824
$502,230
$529,797 $513,645
$547,350 $548,026
$579,388
$634,500
$468,933
$529,534
$419,776 $443,790
$486,835
$426,381 $414,513
$387,736
$564,201
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
2016 2017 2018 2019 2020 2021 2022 2023 2024
1.5% Spending Goal Spending Actual
PRESENTED AT MEETING - FRONTIER ENERGY
Annual Program Performance - $ Spend / kWh Delivered
$0.140
$0.117
$0.105
$0.139
$0.106
$0.189
$0.117
$0.139
$0.108
$0.000
$0.020
$0.040
$0.060
$0.080
$0.100
$0.120
$0.140
$0.160
$0.180
$0.200
2016 2017 2018 2019 2020 2021 2022 2023 2024
Actual $/kWh
PRESENTED AT MEETING - FRONTIER ENERGY
ECO Programs – 2024-2026 Goals
Baseline Requirements for Cooperatives and Municipalities
Program Year Overall Savings Rqmt,
kWh 1.5% of:
Energy Conservation
Rqmt, kWh 0.95% of:
Total Spending
1.5% of:
Low -Income Spending
Rqmt 0.2% of:
2024-2026 2020-2022
average sales
2020-2022
average sales 2022 GOR 2020-2022 average
residential GOR
Annual Goal 4,994,857 3,163,410 $634,500 $29,760
3-Year Total Goal 14,984,572 9,490,229 $1,903,500 $89,281
•Minnesota Statute 216B.2403
PRESENTED AT MEETING - FRONTIER ENERGY
ECO 2024-2026 Tracking – Energy Savings
Goal
14,984,572
2024 Completed
5,235,601
2025 Plan
4,947,527
2026 Plan
4,947,527
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
Goal DeliveredkWh1.5% kWh Savings Tracking
Goal 2024 Completed 2025 Plan 2026 Plan
Goal
9,490,229
2024 Completed
3,758,202
2025 Plan
3,247,527
2026 Plan
3,247,527
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
Goal DeliveredkWh0.95% kWh Savings Tracking
Goal 2024 Completed 2025 Plan 2026 Plan
PRESENTED AT MEETING - FRONTIER ENERGY
ECO 2024-2026 Tracking – Spending
$1,903,500
2024 Completed
$564,201
2025 Plan
$546,720
2026 Plan
$546,720
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
Goal Delivered
1.5% Spend Tracking
Goal 2024 Completed 2025 Plan 2026 Plan
Goal
$89,281
2024 Completed
$106,740
2025 Plan
$100,819
2026 Plan
$100,819
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
Goal Delivered
0.2% Low-Inc. Spend Tracking
Goal 2024 Completed 2025 Plan 2026 Plan
PRESENTED AT MEETING - FRONTIER ENERGY
Frontier Energy’s Services for ERMU
•Deliver cost effective energy savings.
•Energy Managers on call for your customers.
○Audits, recommendations and cost savings analysis, utility bill questions, solar questions, working with
contractors, general energy conservation advice, rebates, grants, and other funding.
○We take pride in customer service.
•P3 tracking software
○All documentation and savings calculations captured and tracked in a single hub.
•Annual reporting and compliance.
•Assist with rebate forms, marketing, program design.
•Wide area of expertise.
•Attend Department of Commerce meetings and keep ERMU informed.
PRESENTED AT MEETING - FRONTIER ENERGY
Keys to Frontier Energy’s Success
•Tracking and achieving goals.
•Communication.
•Customer service.
•Documentation.
•Knowledge.
○We are experts on energy conservation and state rules.
•Advocates of ERMU’s services to your customers.
•Available for commercial and industrial customer energy audits and assist ERMUcustomers with energy -related questions and analysis.
PRESENTED AT MEETING - FRONTIER ENERGY
Questions
PRESENTED AT MEETING - FRONTIER ENERGY