03-11-2025 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
March 11,2025
Members Present: Chair John Dietz,Vice Chair Mary Stewart,Commissioners, Paul Bell, and
Matt Westgaard
Remote Members: Commissioner Nick Zerwas 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
Mike Tietz,Technical Services Superintendent
Dave Ninow,Water Superintendent
Jenny Foss,Communications&Administrative Coordinator
Jon McLean, Locator
Others Present: Jared Shepherd,Attorney;Cal Portner,City Administrator;Tanju Gulati,
Director with Frontier Energy; Doug Eli, Energy Engineer with Frontier Energy;
Alexandra Blair, Program Coordinator with Frontier Energy;Cindy McCleary,
VP and Managing Principal with LEO A DALY;Julia Larson, Project Designer at
LEO A DALY; Isaac Karley, Project Manager at LEO A Daly
1.0 GOVERNANCE
1.1 Oath of Office—John Dietz&Mary Stewart
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
March 11,2025,agenda.Motion carried 5-0.
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1.5 Recognition of Employee Longevity—Jon McLean,8 years
Mr.Tietz commended Mr. McLean for his eight years of dedicated service as an underground
utility locator, highlighting his strong work ethic, positive attitude, and commitment to
exceeding expectations,which have earned him the respect of his colleagues.
Mr. McLean expressed his gratitude,followed by a round of applause.
1.6 2025 Election of Officers—Chair and Vice Chair
Mr. Mauren conducted the election of officers for 2025.There was agreement among the
Commission to maintain the officer appointments from the previous year.
Moved by Commissioner Westgaard and seconded by Commissioner Bell to reappoint
Commissioner Dietz as Chair and reappoint Commissioner Stewart as the Vice Chair.
Motion carried 5-0.
1.6 2025 Committee Appointments
The Commission discussed previous committee appointments and the chair positions.There
was agreement among the Commission to maintain the committee appointments from the
previous year.
Moved by Commissioner Bell and seconded by Commissioner Westgaard to make the
following committee and chair appointments for 2025:
Reappoint Chair Dietz and Commissioner Stewart to the Wage and Benefits Committee
with Chair Dietz to continue to serve as committee chair.
Reappoint Commissioner Westgaard and reappoint Commissioner Zerwas to the
Financial Reserves and Investment Committee with Commissioner Westgaard to
continue to serve as committee chair.
Reappoint Commissioner Stewart to the Information Security Committee.
Reappoint Commissioner Westgaard and Commissioner Bell to the Dispute Resolution
Committee with Commissioner Westgaard to continue to serve as committee chair.
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—February 2025
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2.2 Regular Meeting Minutes—February 11,2025
2.3 2024 Fourth Quarter YTD Earned Sick and Safe Time Usage
Motion carried 5-0.
3.0 OPEN FORUM
No one appeared for open forum.
4.0 POLICY&COMPLIANCE
4.1 Annual Commission Orientation
Under Commission Policy G.2d,an annual orientation program for new and existing
commission members was implemented in 2018.This year's orientation featured
presentations from Frontier Energy and ERMU staff.
Frontier Energy representatives updated the Commission on ERMU's Conservation
Improvement Program,emphasizing their efficiency in helping ERMU achieve its 2024 kWh
savings goals while staying under budget.
Ms. Foss, ERMU's Communications&Administrative Coordinator, presented information
about the department's communication efforts,covering planning,content creation, and
community engagement.
4.2 Annual Commission Bylaw and Attendance Policy
Mr. Mauren presented the commission bylaws and conducted the annual attendance policy
review requested by the City. No changes were proposed.
4.3 Commission Policy Review—G.4—Corporate Limitations
Mr. Mauren presented his memo regarding G.4—Corporate Limitations.There were no
recommended changes from staff.
5.0 BUSINESS ACTION
5.1 ERMU Power Plant Project Update
Representatives from LEO A DALY presented architectural options for the decommissioned power
plant,offering three use designs: child-centered, adult-centered,and a combined approach.They
provided cost estimates and discussed funding options, noting the building's eligibility for the
National Register due to its historical significance in community development and industry.The
rough estimates for all-in costs ranged from$4,860,000 to$7,430,000.
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The discussion included alternative options,such as demolition. Mr. Hanson noted that demolition
and conversion to a parking lot would cost approximately$600,000—$700,000.
The Commission approved spending$15,000 on plans to explore the combined child/adult use
design.They emphasized their desire to minimize expenses while preserving the building's
historical value.
5.2 Financial Report—January 2025
Ms. Karpinski presented the January 2025 financials, highlighting increased electric and water
sales compared to the previous year,with expenses for both remaining under budget.
Moved by Commissioner Westgaard and seconded by Commissioner Bell to receive the
January 2025 Financial Report. Motion carried 5-0.
5.2 Advanced Metering Infrastructure Update
Mr.Teitz reviewed his AMI Update memo, noting that 88%of residential water meter
exchanges are complete. He stated that the installation contractor plans to exit the residential
water meter portion of the project.
Chair Dietz asked if the remaining 500 residential water meters would become ERMU staffs
responsibility,and Mr.Teitz confirmed this.
Ms.Youngs explained that residential water meter customers have received multiple notices
informing them of an April 1 deadline to schedule their replacement appointment to avoid
monthly service fees starting at$50 per month for the first meter and$10 per month for each
additional meter.
There was discussion on how to handle non-responsive customers including potential shut-off
measures.
Mr. Hanson explained that the existing meters will eventually become obsolete and must
be replaced. Customers can request manual meter reading for the new meters, but this
requires additional customer-purchased equipment installed at the residence.
Mr. Ninow clarified that this equipment allows readings by physically touching a device to
it, rather than using a radio signal.
Chair Dietz asked if this means a technician must physically approach the meter to take a
reading. Ms. Youngs confirmed, adding that the equipment is outside the home, so
technicians won't need to enter the residence.
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Mr. Tietz proceeded with his memo review.
6.0 BUSINESS DISCUSSION
6.1 Staff Updates
Mr. Hanson sought commission direction regarding the$15-20K estimated cost for private
property repair as a result of the water main break on Polk Avenue. He noted that the
Minnesota League of Cities Insurance Trust denied the claim as it was determined there was
no negligence and added that more than likely the resident's insurance would deny the claim
as well.
The Commission recommended that Mr. Hanson inform the resident about the Dispute
Resolution Committee to address the payment of expenses related to the water main break.
6.2 City Council Update
Chair Dietz provided a City Council update.
6.3 American Public Power Association Legislative Rally Update-Verbal
Mr. Hanson gave a verbal update on the American Public Power Association Legislative Rally in
Washington, D.C. He was joined this year by Commissioner Zerwas, Commissioner Bell,and
Mr. Mauren. During the rally,they met with Minnesota Senators Amy Klobuchar and Tina
Smith,as well as House Majority Whip Tom Emmer. Discussions centered primarily on
municipal bond tax exemptions and permitting reforms.
6.4 Future Planning
Chair Dietz announced the following:
a. Regular Commission Meeting—April 8, 2025
b. 2025 Governance Agenda
6.5 Other Business
7.0 ADJOURN REGULAR MEETING
Moved by Commissioner Bell and seconded by Commissioner Stewart to adjourn the regular
meeting of the Elk River Municipal Utilities Commission at 5:47 p.m. Motion carried 5-0.
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Minutes prepared by Jenny Foss.
irk Ali
Ali LA.
Jo 0. ftz, E'p Commission Chair
Tina Allard,City Clerk
Elk River Municipal Utilities Commission Meeting Minutes
March 11, 2025
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