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2026-1-13 - ERMU - Regular Commission MeetingELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION HELD AT UTILITIES CONFERENCE ROOM January 13, 2026 Members Present: Chair John Dietz, Vice Chair Mary Stewart, Commissioners Jill Larson -Vito, Matt Westgaard, and Nick Zerwas ERMU Staff Present: Mark Hanson, General Manager Sara Youngs, Administrations Director Melissa Karpinski, Finance Manager Tom Geiser, Operations Director Tony Mauren, Governance & Communications Manager Dave Ninow, Water Superintendent Chris Sumstad, Electric Superintendent Mike Tietz, Technical Services Superintendent Parker Thiesen, IT/OT Technician Jenny Foss, Communications & Administrative Coordinator 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 Westgaard and seconded by Commissioner Larson -Vito to approve the January 13, 2026, agenda. Motion carried 5-0. 2.0 CONSENT AGENDA (Approved By One Motion Commissioner Stewart provided a wording correction to the Special Meeting Minutes, agenda item 2.1- Receive Final Electric and Water Cost of Service and Rate Design Studies. She explained the term "Plant and Service" should be changed to the accounting term "Plant in Service." It was noted that this term was also used in the memo for item 2.4 - Electric and Water Cost of Service and Rate Design Studies. Staff stated they would make the correction. Elk River Municipal Utilities Commission Meeting Minutes January 13, 2026 Page 1 Moved by Commissioner Stewart and seconded by Commissioner Zerwas to approve the adapted Consent Agenda as follows: 2.1 Check Register — December 2025 2.2 Regular Meeting Minutes— December 9, 2025 2.3 Special Meeting Minutes— December 18, 2025 2.4 Electric and Water Cost of Service and Rate Design Studies 2.5 Cogeneration and Small Power Production Tariff — Schedule 1 and 2 Motion carried 5-0. 3.0 OPEN FORUM No one appeared for open forum. 4.0 POLICY & COMPLIANCE 4.1 Commission Policy Review — G.4f — Employee Interests Mr. Mauren presented his memo regarding G.4f— Employee Interests. There were no recommended changes from staff. Commissioners had no comments, questions, or recommended updates. 4.2 Annual Review of Committee Charters Mr. Mauren presented the Annual Review of Committee Charters for commission review to determine if any changes were required. There were no changes made by the Commission. Commissioner Zerwas emphasized that the Dispute Resolution Committee was available to address any customer issues requiring deeper discussion, not just billing concerns, before they are brought to the full commission. 5.0 BUSINESS ACTION 5.1 Financial Report— November 2024 Ms. Karpinski presented the November financial report, noting that year-to-date total profit through November is $4.3 million with an 8.82% net position. Both electric and water have performed well. Elk River Municipal Utilities Commission Meeting Minutes January 13, 2026 Page 2 Accounts receivable remain in good standing. About 89% of balances are current, with only 2% falling into the 90-day past -due category. Most outstanding balances come from electric accounts, primarily inactive accounts that are being handled through Revenue Recapture or collections. These will either be collected or written off after six years. Assessment receivables were removed in November but still appear within total accounts receivable on the balance sheet. Electric usage and purchased power costs are both up approximately 4% from 2024, Water usage is up 6% and revenue is up 8% compared to last year. Chair Dietz asked a clarifying question regarding the $3 million dollars in accounts receivable for electric. Ms. Karpinski explained the amount reflected the utility billing for the previous month. She noted this amount can fluctuate based on the billing cycle which ranges between 28 to 35 days. Ms. Youngs further clarified that there can only be one billing date and one due date per month, per cycle. Chair Dietz asked if there were allowances for bad debt in both water and electric. Ms. Karpinski confirmed that there were. Moved by Commissioner Larson -Vito and seconded by Commissioner Westgaard to receive the November 2025 Financial Report. Motion carried 5-0. 5.2 American Public Power Association CR7 Subaward Agreement Mr. Theisen reviewed the subaward agreement memo. He explained that the grant will cover all program costs for the first two years. After that period, the Commission will evaluate the program's effectiveness and determine whether to approve ongoing licensing costs. The equipment is expected to have a useful life of approximately 10 years. Commissioner Stewart commended Mr. Theisen for his efforts in day-to-day ERMU operations, as well as for the hard work and dedication required to secure the grant. Moved by Commissioner Larson -Vito and seconded by Commissioner Westgaard to approve the American Public Power Association CR7 Agreement, pending legal review. Motion carried 5-0. Elk River Municipal Utilities Commission Meeting Minutes January 13, 2026 Page 3 6.0 BUSINESS DISCUSSION 6.1 Staff Updates Ms. Youngs reported that ERMU met its 2025 Conservation Improvement Plan goals. She noted that Frontier Energy will report to the Commission at a future meeting. Mr. Mauren reminded the commission to submit their ERMU clothing orders by January 28, 2026. 6.2 City Council Update Chair Dietz provided a city council update. 6.3 Future Planni Chair Dietz announced the following: a. Regular Commission Meeting— February 10, 2026 b. 2026 Governance Agenda 6.5 Other Business There was no other business 7.0 ADJOURN REGULAR MEETING Moved by Commissioner Zerwas and seconded by Commissioner Larson -Vito to adjourn the regular meeting of the Elk River Municipal Utilities Commission at 3:55 p.m. Motion carried 5-0. Minutes pre red by Jenny Foss. Joh J DNERW�J-ommission Chair Jolene Rich,./er,'D_eraty City Clerk Elk River Municipal Utilities Commission Meeting Minutes January 13, 2026 Page 4