January 8, 2019


Jan 8, 2019 - 6.3 Other Business (Items added during agenda approval.) ..... AMERICAN PUBLIC POWER ASSOCIATI 2019 E & O TECH CONF - 6 72 152 ..... MET...

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REGULAR MEETING OF THE UTILITIES COMMISSION January 8, 2019, 3:30 P.M. Utilities Conference Room

AGENDA 1.0 1.1 1.2 1.3 1.4

GOVERNANCE Call Meeting to Order Pledge of Allegiance Consider the Agenda Employee Recognition of Achievement a. Theresa Slominski – Graduation from the Minnesota Municipal Utilities Association Leadership Academy

2.0 2.1 2.2 2.3

CONSENT (Routine items. No discussion. Approved by one motion.) Check Register Regular Meeting Minutes – December 11, 2018 Schedule of Rates

3.0 OPEN FORUM (Non-agenda items for discussion. No action.) 4.0 POLICY & COMPLIANCE (Policy review, policy development, and compliance monitoring.) 4.1 Annual Review of Committee Charters 4.2 Compliance Monitoring Report – Employee Safety Manual 5.0 BUSINESS ACTION (Current business action requests and performance monitoring reports.) 5.1 Financial Report – November 2018 5.2 Wage & Benefits Committee Update 6.0 BUSINESS DISCUSSION (Future business planning, general updates, and informational reports.) 6.1 Staff Updates 6.2 Future Planning (Announce the next regular meeting, special meeting, or planned quorum.) a. Regular Commission Meeting – February 12, 2019 b. 2019 Governance Agenda 6.3 Other Business (Items added during agenda approval.) 7.0 ADJOURN REGULAR MEETING

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Elk River Municipal Utilities 12/31/2018 10:20:33 am

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Payroll/Labor Check Register Totals 12/14/2018 To 12/14/2018

Pays 2 3 4 5 24 25 10 18 104 105 VAC SICK HOL 78 5-2 PTO 18A 10-3 10-4 104A

Job Reg Hrly Overtime Double Time On-Call/Stand-by FLSA Rest Time Bonus Pay Commissioner Reimb - Electric Commission Stipend Perf. Metr. Distr. Vacation Pay Sick Pay Holiday Pay Retro Earnings On-Call/Stand-by/OT Personal Day Commissioner Reimb. - Water Bonus Pay Overtime Bonus Pay Double Time Commission Stipend - Water Pay Total:

25203

Amount 128,437.70 413.44 0.00 1,899.49 16.70 122.86 137.91 600.00 0.00 0.00 3,662.53 4,357.50 0.00 0.00 177.41 0.00 150.00 0.00 0.00 0.00 139,975.54

Hours 3,305.25 7.05 0.00 48.08 0.00 3.00 3.00 0.00 0.00 0.00 93.75 115.00 0.00 0.00 2.50 0.00 0.00 0.00 0.00 0.00 3,577.63

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KGreenberg25

Elk River Municipal Utilities 12/31/2018 10:21:25 am

Revision: 94497 Page: 1

Payroll/Labor Check Register Totals 12/28/2018 To 12/28/2018

Pays 2 3 4 5 24 25 10 105 VAC SICK HOL 78 5-2 PTO 10-3 10-4 VAC

Job Reg Hrly Overtime Double Time On-Call/Stand-by FLSA Rest Time Bonus Pay Perf. Metr. Distr. Vacation Pay Sick Pay Holiday Pay Retro Earnings On-Call/Stand-by/OT Personal Day Bonus Pay Overtime Bonus Pay Double Time Vacation Pay - Manager Pay Total:

25203

Amount 116,241.11 91.22 0.00 1,935.86 0.00 0.00 0.00 0.00 3,829.30 2,694.61 13,671.44 0.00 0.00 278.00 0.00 0.00 4,142.80 142,884.34

Hours 2,985.25 1.75 0.00 48.08 0.00 0.00 0.00 0.00 101.75 73.00 352.00 0.00 0.00 8.00 0.00 0.00 80.00 3,649.83

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KGreenberg25

CHECK REGISTER

December, 2018

APPROVED BY:

Paul Bell

John Dietz

Allan Nadeau

Mary Stewart

Matt Westgaard

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12/01/2018 To 12/31/2018 Bank Account: 1 - GENERAL FUND Check / Tran Date

Pmt Type

Vendor

2215 12/03/2018 WIRE 285

Vendor Name

Reference

Amount

JOHN HANCOCK

W&A EMPLOYER CONTRIBUTION

433.09

WENZEL EMPLOYEE CONTRIBUTIONS

934.04

DEF COMP ROTH CONTRIBUTIONS W&A

179.06

W&A EMPLOYER CONTRIBUTION

38.97

WENZEL EMPLOYEE CONTRIBUTIONS

39.84

DEF COMP ROTH CONTRIBUTIONS W&A Total for Check/Tran - 2215: 2216 12/03/2018 WIRE 160

HCSP (ELECTRONIC)

HCSP EMPLOYEE CONTRIBUTIONS

1,681.98

HCSP EMPLOYEE CONTRIBUTIONS Total for Check/Tran - 2216: 2217 12/03/2018 WIRE 161

MNDCP (ELECTRONIC)

MNDCP EE MANAGER CONTRIBUTIONS

563.24 2,929.53

MNDCP EMPLOYER CONTRIBUTION

1,192.38

MNDCP EMPLOYER MGR CONTRIBUTION

660.95

MNDCP EE ROTH CONTRIBUTIONS

479.31

MNDCP EE ROTH MGR CONTRIBUTIONS

97.71

MNDCP EE MANAGER CONTRIBUTIONS

179.13

MNDCP EE ROTH MGR CONTRIBUTIONS

3.63

MNDCP EMPLOYEE CONTRIBUTIONS

400.12

MNDCP EMPLOYER CONTRIBUTION

232.27

MNDCP EMPLOYER MGR CONTRIBUTION

182.76 Total for Check/Tran - 2217:

AMERICAN EXPRESS

General Manager American Express Total for Check/Tran - 2218:

25203

203.26 7,124.29 1,230.79

General Manager American Express

2219 12/03/2018 WIRE 3219

246.75 1,928.73

MNDCP EMPLOYEE CONTRIBUTIONS

MNDCP EE ROTH CONTRIBUTIONS

2218 12/03/2018 WIRE 8181

8.81 1,633.81

57.79 1,288.58

RESOURCE TRAINING & SOLUTIONS/B HEALTH CARE PREMIUMS - DEC 2018

16,326.38

HEALTH CARE PREMIUMS - DEC 2018

44,195.79

HEALTH CARE PREMIUMS - DEC 2018

1,581.50

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Pmt Type

Vendor

Vendor Name

Reference

Amount

HEALTH CARE PREMIUMS - DEC 2018 Total for Check/Tran - 2219: 2220 12/05/2018 WIRE 152

IRS - USA TAX PMT (ELECTRONIC)

PAYROLL TAXES - FEDERAL & FICA

10,559.52

PAYROLL TAXES - FEDERAL & FICA

16,154.70

PAYROLL TAXES - FEDERAL & FICA

1,884.86

PAYROLL TAXES - FEDERAL & FICA

2,924.80 31,523.88

Total for Check/Tran - 2220: 2221 12/06/2018 WIRE 154

MINNESOTA REVENUE (ELECTRONIC) PAYROLL TAXES - STATE

5,012.19

PAYROLL TAXES - STATE Total for Check/Tran - 2221: 2222 12/05/2018 WIRE 7463

SELECTACCOUNT

ER HSA CONTRIBUTION - 164 Total for Check/Tran - 2222:

2223 12/05/2018 WIRE 7463

SELECTACCOUNT

2224 12/07/2018 WIRE 166

ONLINE UTILITY EXCHANGE (ELECTR UTILITY EXCHANGE REPORT

901.67 5,913.86 43.34

ER HSA CONTRIBUTION - 164

FSA CLAIM REIMBURSEMENTS - 32

10.83 54.17 115.39 353.09

UTILITY EXCHANGE REPORT Total for Check/Tran - 2224:

88.27 441.36

2226 12/12/2018 WIRE 7463

SELECTACCOUNT

FSA CLAIM REIMBURSEMENTS - 147

2227 12/14/2018 WIRE 153

PERA (ELECTRONIC)

PERA EMPLOYEE CONTRIBUTION

7,682.49

PERA CONTRIBUTIONS

8,864.38

PERA EMPLOYEE CONTRIBUTION

1,367.19

280.00

PERA CONTRIBUTIONS Total for Check/Tran - 2227: 2228 12/17/2018 WIRE 285

25203

9,527.83 71,631.50

JOHN HANCOCK

1,577.54 19,491.60

W&A EMPLOYER CONTRIBUTION

355.73

WENZEL EMPLOYEE CONTRIBUTIONS

942.58

DEF COMP ROTH CONTRIBUTIONS W&A

187.87

W&A EMPLOYER CONTRIBUTION

15.36

WENZEL EMPLOYEE CONTRIBUTIONS

31.30

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12/01/2018 To 12/31/2018 Bank Account: 1 - GENERAL FUND Check / Tran Date

Pmt Type

Vendor

Vendor Name

Reference

Amount Total for Check/Tran - 2228:

2229 12/14/2018 WIRE 7463

SELECTACCOUNT

HSA EMPLOYEE CONTRIBUTION

2,265.70

HSA EMPLOYEE CONTRIBUTION Total for Check/Tran - 2229: 2230 12/17/2018 WIRE 160

HCSP (ELECTRONIC)

HCSP EMPLOYEE CONTRIBUTIONS Total for Check/Tran - 2230:

MNDCP (ELECTRONIC)

MNDCP EE MANAGER CONTRIBUTIONS

653.34 3,112.20

MNDCP EMPLOYER CONTRIBUTION

1,138.64

MNDCP EMPLOYER MGR CONTRIBUTION

660.78

MNDCP EE ROTH CONTRIBUTIONS

461.12

MNDCP EE ROTH MGR CONTRIBUTIONS

97.51

MNDCP EE MANAGER CONTRIBUTIONS

190.37

MNDCP EE ROTH MGR CONTRIBUTIONS

3.83

MNDCP EMPLOYEE CONTRIBUTIONS

417.96

MNDCP EMPLOYER CONTRIBUTION

237.67

MNDCP EMPLOYER MGR CONTRIBUTION

182.93 Total for Check/Tran - 2231:

IRS - USA TAX PMT (ELECTRONIC)

10,550.98

PAYROLL TAXES - FEDERAL & FICA

16,019.28

PAYROLL TAXES - FEDERAL & FICA

1,759.32 Total for Check/Tran - 2232:

MINNESOTA REVENUE SALES TX (ELE SALES AND USE TAX - NOV 2018 Total for Check/Tran - 2233:

25203

SELECTACCOUNT

FSA CLAIM REIMBURSEMENTS - 121 /pro/rpttemplate/acct/2.43.1/ap/AP_CHK_REGISTER.xml.rpt

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2,781.22 31,110.80 133,208.03

SALES AND USE TAX - NOV 2018

2234 12/19/2018 WIRE 7463

203.44 7,359.79

PAYROLL TAXES - FEDERAL & FICA

PAYROLL TAXES - FEDERAL & FICA

2233 12/20/2018 WIRE 174

238.38 1,913.23

MNDCP EMPLOYEE CONTRIBUTIONS

MNDCP EE ROTH CONTRIBUTIONS

2232 12/18/2018 WIRE 152

499.48 2,765.18 1,674.85

HCSP EMPLOYEE CONTRIBUTIONS

2231 12/17/2018 WIRE 161

1,532.84

3,417.97 136,626.00 4,300.00

Elk River Municipal Utilities 12/31/2018

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12/01/2018 To 12/31/2018 Bank Account: 1 - GENERAL FUND Check / Tran Date

Pmt Type

Vendor

Vendor Name

Reference

Amount

FSA CLAIM REIMBURSEMENTS - 32

115.39

FSA CLAIM REIMBURSEMENTS - 133 Total for Check/Tran - 2234: 2235 12/20/2018 WIRE 154

MINNESOTA REVENUE (ELECTRONIC) PAYROLL TAXES - STATE

5,005.48

PAYROLL TAXES - STATE Total for Check/Tran - 2235: 2236 12/24/2018 WIRE 7463

SELECTACCOUNT

ADMINISTRATIVE FEE INVOICE - DEC 2018 Total for Check/Tran - 2236:

SELECTACCOUNT

150.00

FSA CLAIM REIMBURSEMENTS- 133

81.00 Total for Check/Tran - 2238:

PERA (ELECTRONIC)

7,629.93

PERA CONTRIBUTIONS

8,803.75

PERA EMPLOYEE CONTRIBUTION

1,388.29 Total for Check/Tran - 2239:

MNDCP (ELECTRONIC)

MNDCP EE MANAGER CONTRIBUTIONS

1,601.87 19,423.84 653.31

MNDCP EMPLOYEE CONTRIBUTIONS

3,112.33

MNDCP EMPLOYER CONTRIBUTION

1,031.34

MNDCP EMPLOYER MGR CONTRIBUTION

659.51

MNDCP EE ROTH CONTRIBUTIONS

459.60

MNDCP EE ROTH MGR CONTRIBUTIONS

96.27

MNDCP EE MANAGER CONTRIBUTIONS

190.40

MNDCP EE ROTH MGR CONTRIBUTIONS

25203

807.75 1,038.75

PERA EMPLOYEE CONTRIBUTION

PERA CONTRIBUTIONS

2240 12/31/2018 WIRE 161

17.85 118.00

FSA CLAIM REIMBURSEMENTS - 147 FSA CLAIM REIMBURSEMENTS - 127

2239 12/28/2018 WIRE 153

857.01 5,862.49 100.15

ADMINISTRATIVE FEE INVOICE - DEC 2018

2238 12/28/2018 WIRE 7463

250.00 4,665.39

5.07

MNDCP EMPLOYEE CONTRIBUTIONS

417.83

MNDCP EMPLOYER CONTRIBUTION

212.18

MNDCP EMPLOYER MGR CONTRIBUTION

184.20

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12/01/2018 To 12/31/2018 Bank Account: 1 - GENERAL FUND Check / Tran Date

Pmt Type

Vendor

Vendor Name

Reference

Amount

MNDCP EE ROTH CONTRIBUTIONS Total for Check/Tran - 2240: 2241 12/31/2018 WIRE 160

HCSP (ELECTRONIC)

HCSP EMPLOYEE CONTRIBUTIONS

1,677.46

HCSP EMPLOYEE CONTRIBUTIONS Total for Check/Tran - 2241: 2242 12/31/2018 WIRE 285

JOHN HANCOCK

298.34

WENZEL EMPLOYEE CONTRIBUTIONS

942.51

DEF COMP ROTH CONTRIBUTIONS W&A

187.87 9.99

WENZEL EMPLOYEE CONTRIBUTIONS Total for Check/Tran - 2242: 102

ABDO EICK & MEYERS, LLP

60.00

GASB UPDATES SEMINAR - KARPINSKI

15.00

GASB UPDATES SEMINAR - BIORN

60.00 Total for Check/Tran - 76241:

11

CITY OF ELK RIVER

WATER PUMP REPAIRS WATER PUMP REPAIRS

15.00 150.00 -0.14 42.13

PARTS & LABOR FOR UNIT #35

-28.34

PARTS & LABOR FOR UNIT #35

535.52

PARTS & LABOR FOR UNIT #35

-1.49

PARTS & LABOR FOR UNIT #35

28.18

PARTS & LABOR FOR UNIT #9

-27.25

PARTS & LABOR FOR UNIT #9

623.68

PARTS & LABOR FOR UNIT #4

-17.35

PARTS & LABOR FOR UNIT #4

289.70

PARTS & LABOR FOR UNIT #5

-6.56

PARTS & LABOR FOR UNIT #5

202.00

PARTS & LABOR FOR UNIT #20 25203

31.30 1,470.01

GASB UPDATES SEMINAR - KARPINSKI

GASB UPDATES SEMINAR - BIORN

76242 12/06/2018 CHK

241.57 1,919.03

W&A EMPLOYER CONTRIBUTION

W&A EMPLOYER CONTRIBUTION

76241 12/05/2018 CHK

204.57 7,226.61

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-1.28

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12/01/2018 To 12/31/2018 Bank Account: 1 - GENERAL FUND Check / Tran Date

Pmt Type

Vendor

Vendor Name

Reference

Amount

PARTS & LABOR FOR UNIT #20

99.89

PARTS & LABOR FOR UNIT #10

-4.66

PARTS & LABOR FOR UNIT #10

152.47

PARTS & LABOR FOR UNIT #29

-13.46

PARTS & LABOR FOR UNIT #29 Total for Check/Tran - 76242: 76243 12/06/2018 CHK

2512

AMARIL UNIFORM COMPANY

EMPLOYEE CLOTHING - VOLK

125.51

EMPLOYEE CLOTHING - KERZMAN

235.49

EMPLOYEE CLOTHING - VOLK Total for Check/Tran - 76243: 76244 12/06/2018 CHK

439

ARCMAN CORPORATION

METER LAMP - THIRY RETIREMENT Total for Check/Tran - 76244:

8552

BECK LAW OFFICE

LEGAL SERVICES

555.16 519.45 1,434.88

LEGAL SERVICES Total for Check/Tran - 76246:

358.72 1,793.60

76247 12/06/2018 CHK

9997

BENZINGER HOMES

DEP To AP

250.62

76248 12/06/2018 CHK

28

CINTAS

MATS & TOWELS

106.54

MATS & TOWELS

26.63

MATS & TOWELS

103.81

MATS & TOWELS

25.95

MATS & TOWELS

103.81

MATS & TOWELS

25.95 392.69

Total for Check/Tran - 76248: 76249 12/06/2018 CHK

112

DACOTAH PAPER CO.

CLEANING SUPPLIES

274.38

Discount

-2.57

CLEANING SUPPLIES

68.59

Discount Total for Check/Tran - 76249: 25203

155.39 516.39 -35.71

METER LAMP - THIRY RETIREMENT

76246 12/06/2018 CHK

289.30 2,162.34

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-0.64 339.76

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12/01/2018 To 12/31/2018 Bank Account: 1 - GENERAL FUND Check / Tran Date

Pmt Type

Vendor

Vendor Name

Reference

Amount

76250 12/06/2018 CHK

212

DAKOTA SUPPLY GROUP

Locks

577.13

76251 12/06/2018 CHK

9997

EIGHTH ADDITION PROPERTIES, LLC

DEP To AP

250.92

76252 12/06/2018 CHK

9997

ELK RIVER AUTOMALL LLC

DEP To AP

1,013.52

76253 12/06/2018 CHK

4252

ELK RIVER HEATING & AIR CONDITION WELL #7 FALL MTC

135.00

WELL #3 FALL MTC

135.00 270.00

Total for Check/Tran - 76253: 76254 12/06/2018 CHK

23

ELK RIVER MUNICIPAL UTILITIES

CYCLE 2 - ACCT 2125 - OCT 2018

154.97

CYCLE 2 - INV GRP 413 - OCT 2018

100.00

CYCLE 2 - INV GRP 413 - OCT 2018

490.33

CYCLE 2 - INV GRP 436 - OCT 2018 Total for Check/Tran - 76254: 76255 12/06/2018 CHK

671

FASTENAL COMPANY

MISC PARTS & SUPPLIES

76256 12/06/2018 CHK

7344

GOVERNMENTAL ACCOUNTING STAN 2 YEAR RENEWAL

16.79 416.00

2 YEAR RENEWAL Total for Check/Tran - 76256:

104.00 520.00

76257 12/06/2018 CHK

64

GRANITE ELECTRONICS INC

LIGHTNING STRIKE REPAIR

76258 12/06/2018 CHK

53

GREAT RIVER ENERGY

2018 O&M POINTS & ANNUAL LICENSING FEE

76259 12/06/2018 CHK

8469

KATHY GREENBERG

PAYROLL SEMINAR MILEAGE - GREENBERG

23.63

PAYROLL SEMINAR MILEAGE - GREENBERG

5.91 29.54

3,531.47

Total for Check/Tran - 76259:

25203

2,527.87 3,273.17

23,451.09

76260 12/06/2018 CHK

308

HASSAN SAND & GRAVEL

PULVERIZED TOPSOILD

76261 12/06/2018 CHK

9997

HEADWATER HOMES, LLC.

DEP To AP

251.37

76262 12/06/2018 CHK

9997

HEDBERG HOMES,INC

DEP To AP

150.61

76263 12/06/2018 CHK

8083

JT SERVICES

LED SECURITY/STREET LIGHT

76264 12/06/2018 CHK

145

MENARDS

SUPPLIES - MOUSE TRAPS /pro/rpttemplate/acct/2.43.1/ap/AP_CHK_REGISTER.xml.rpt

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40.00

6,059.81 27.27

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12/01/2018 To 12/31/2018 Bank Account: 1 - GENERAL FUND Check / Tran Date

Pmt Type

Vendor

Vendor Name

Reference

Amount

76265 12/06/2018 CHK

2775

MICHELS CORPORATION

MISKE MEADOWS 5TH ADDITION

76266 12/06/2018 CHK

1001

MINNESOTA MUNICIPAL POWER AGEN BUY-IN TRUE UP

444,393.41

BUY-IN TRUE UP

-224,314.78 220,078.63

22,799.26

Total for Check/Tran - 76266: 76267 12/06/2018 CHK

39

MMUA

2019 LEGIS CONF - 72 113

352.00

2019 LEGIS CONF - 72 113

88.00

LEADERSHIP ACADEMY - NELSON

480.00

LEADERSHIP ACADEMY - NELSON Total for Check/Tran - 76267: 76268 12/06/2018 CHK

573

NCPERS MINNESOTA

EXTRA LIFE INSURANCE FOR ERMU EMPLOYEES

196.80

EXTRA LIFE INSURANCE FOR ERMU EMPLOYEES

43.20 240.00

Total for Check/Tran - 76268: 76269 12/06/2018 CHK

3321

NORTHSTAR CHAPTER - APA

YEAR-END REVIEW SEMINAR - GREENBERG

36.00

YEAR-END REVIEW SEMINAR - GREENBERG

9.00 45.00

Total for Check/Tran - 76269: 76270 12/06/2018 CHK

254

PETERSON POOLS & SPAS

WATER CHEMICALS

76271 12/06/2018 CHK

811

PRIME ADVERTISING & DESIGN, INC.

Marketing Agency Retainer Agreement

76272 12/06/2018 CHK

8897

RALPHIE'S MINNOCO

RALPHIE'S MINNOCO

76273 12/06/2018 CHK

3218

RDO EQUIPMENT

Trencher Chain

3,709.53

76274 12/06/2018 CHK

5208

SHAFER CONTRACTING CO., INC

EXTEND WATERMAIN

8,925.36

76275 12/06/2018 CHK

777

STANTEC CONSULTING SERVICES, INC. Consulting Srvcs-ER Pump House Elec Eval

76276 12/06/2018 CHK

8551

STERLING TROPHY

400.54 2,500.00 9.06

491.47

ANNIVERSARY PLAQUES

66.42

ANNIVERSARY PLAQUES Total for Check/Tran - 76276: 76277 12/06/2018 CHK

543

USA BLUEBOOK

WATERPROOF GLOVES Total for Check/Tran - 76277: /pro/rpttemplate/acct/2.43.1/ap/AP_CHK_REGISTER.xml.rpt

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16.60 83.02 -8.61

WATERPROOF GLOVES 25203

120.00 1,040.00

133.91 125.30

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Pmt Type

76278 12/06/2018 CHK

Vendor

Vendor Name

Reference

Amount

1074

WINDSTREAM

OFFICE TELEPHONE

373.04

OFFICE TELEPHONE

67.06

OFFICE TELEPHONE Total for Check/Tran - 76278: 76279 12/06/2018 CHK

9997

JAMES WITTHUS

Credit Balance Refund

694.14

76280 12/06/2018 CHK

3396

WRIGHT COUNTY HWY DEPT

CTY RD 39 POLE REPLACEMENT

100.00

76281 12/13/2018 CHK

11

CITY OF ELK RIVER

2018 DISCLOSURE SERVICES - REV BONDS

600.00

2018 DISCLOSURE SERVICES - REV BONDS

460.00

SERVER CABINETS

-13.28

SERVER CABINETS

206.45

SERVER CABINETS

-3.32

SERVER CABINETS

51.61

FUEL USAGE - OCT 2018

3,753.34

FUEL USAGE - OCT 2018 Total for Check/Tran - 76281: 76282 12/13/2018 CHK

4048

TROY ADAMS

RP3 MTG & T&O CONF TIPS

76283 12/13/2018 CHK

191

AMERICAN PAYMENT CENTERS

DROP BOX CHARGES - DEC '18 to FEB '19

222.30 Total for Check/Tran - 76283:

76284 12/13/2018 CHK

7169

AMERICAN PAYROLL ASSOCATION

2019 MEMBERSHIP RENEWAL Total for Check/Tran - 76284:

211

JENNY BIORN

GASB UPDATE MILEAGE - BIORN Total for Check/Tran - 76285:

9654

CARDMEMBER SERVICE

FIRST NATIONAL BANK VISA Total for Check/Tran - 76286:

12

7.63 38.15 3,834.56

FIRST NATIONAL BANK VISA /pro/rpttemplate/acct/2.43.1/ap/AP_CHK_REGISTER.xml.rpt

43.80 219.00 30.52

GASB UPDATE MILEAGE - BIORN

76286 12/13/2018 CHK

55.58 277.88 175.20

2019 MEMBERSHIP RENEWAL

76285 12/13/2018 CHK

774.47 5,829.27 14.00

DROP BOX CHARGES - DEC '18 to FEB '19

25203

93.26 533.36

50.17 3,884.73

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Pmt Type

Vendor

Vendor Name

Reference

Amount

76287 12/13/2018 CHK

54

CORE & MAIN LP

PIPE, ALPHA RESTRAINT

1,202.14

76288 12/13/2018 CHK

36

CROW RIVER FARM EQUIP CO

MISC PARTS & SUPPLIES

-0.62

MISC PARTS & SUPPLIES Total for Check/Tran - 76288: 76289 12/13/2018 CHK

212

DAKOTA SUPPLY GROUP

CRIMP

-12.34

Crimp Total for Check/Tran - 76289: 76290 12/13/2018 CHK

23

ELK RIVER MUNICIPAL UTILITIES

4473

23.03

CYCLE 3 - INV GRP 414 - OCT 2018

175.00

CYCLE 3 - INV GRP 414 - OCT 2018

999.58

CYCLE 3 - INV GRP 395 - OCT 2018

9,889.71 11,087.32

GRAY, PLANT, MOOTY & BENNETT, P.A LEGAL SERVICES - NOV 2018

112.00

LEGAL SERVICES - NOV 2018 Total for Check/Tran - 76291: 76292 12/13/2018 CHK

846

HACH COMPANY

WATER CHEMICALS Total for Check/Tran - 76292:

6836

186.00 1,258.25

INNOVATIVE OFFICE SOLUTIONS, LLC OFFICE SUPPLIES

8.75

OFFICE SUPPLIES

2.19

OFFICE SUPPLIES

241.94

OFFICE SUPPLIES

60.48

OFFICE SUPPLIES

-12.80

OFFICE SUPPLIES Total for Check/Tran - 76293:

25203

28.00 140.00 1,072.25

MISC PARTS & SUPPLIES

76293 12/13/2018 CHK

191.84 179.50

CYCLE 3 - ACCT 37747 - OCT 2018

Total for Check/Tran - 76290: 76291 12/13/2018 CHK

9.66 9.04

-3.20 297.36

76294 12/13/2018 CHK

8083

JT SERVICES

BUMPER POST

76295 12/13/2018 CHK

353

MELISSA KARPINSKI

AEM SEMINAR MILEAGE - 147

37.50

AEM SEMINAR MILEAGE - 147

9.37

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1,355.13

Elk River Municipal Utilities 12/31/2018

Revision: 92788

Accounts Payable Check Register

10:22:33 AM

Page 11

12/01/2018 To 12/31/2018 Bank Account: 1 - GENERAL FUND Check / Tran Date

Pmt Type

Vendor

Vendor Name

Reference

Amount Total for Check/Tran - 76295:

76296 12/13/2018 CHK

5218

MASTER ELECTRIC COMPANY, INC

TESTT INSPECTION - WELL #4

76297 12/13/2018 CHK

145

MENARDS

CIP - LIGHTING REBATE COUPONS

76298 12/13/2018 CHK

1001

MINNESOTA MUNICIPAL POWER AGEN PURCHASED POWER - NOV 2018

76299 12/13/2018 CHK

120

NAPA AUTO PARTS

3,981.00 106.00 1,950,511.26

REPAIR PARTS - BORE RIG

278.27

REPAIR PARTS

148.02

PARTS FOR UNIT #11

39.93

REPAIR PARTS

140.22

PARTS FOR UNIT #59

15.46

GASKET MATERIAL - POLE PULLER

7.98

PARTS FOR UNIT #59 Total for Check/Tran - 76299: 76300 12/13/2018 CHK

5079

OFFICE DEPOT BUSINESS CREDIT

OFFICE SUPPLIES Total for Check/Tran - 76300:

572

RAMADA MARSHALL

CROSS TRAINING SCHOOL HOTEL - 154

207.08 10.90

CROSS TRAINING SCHOOL HOTEL - 149

207.08 Total for Check/Tran - 76301:

128

RANDY'S SANITATION, INC.

672.78

TRASH SERVICE - NOV 2018

168.19 33.86

RECYCLING SERVICE - DEC 2018 Total for Check/Tran - 76302: 3218

RDO EQUIPMENT

UNLOADER VALVE Total for Check/Tran - 76303: /pro/rpttemplate/acct/2.43.1/ap/AP_CHK_REGISTER.xml.rpt

14

8.47 883.30 -8.47

UNLOADER VALVE

25203

10.90 435.96

TRASH SERVICE - NOV 2018 RECYCLING SERVICE - DEC 2018

76303 12/13/2018 CHK

11.33 56.62

CROSS TRAINING SCHOOL HOTEL - 154 CROSS TRAINING SCHOOL HOTEL - 149

76302 12/13/2018 CHK

4.89 634.77 45.29

OFFICE SUPPLIES

76301 12/13/2018 CHK

46.87

131.71 123.24

Elk River Municipal Utilities 12/31/2018

Revision: 92788

Accounts Payable Check Register

10:22:33 AM

Page 12

12/01/2018 To 12/31/2018 Bank Account: 1 - GENERAL FUND Check / Tran Date

Pmt Type

76304 12/13/2018 CHK

Vendor

Vendor Name

Reference

Amount

130

RESCO

Transformer

6,445.00

Discount

-3.22 6,441.78

Total for Check/Tran - 76304: 76305 12/13/2018 CHK

5214

SAFETY SIGNS LLC

SAFETY SIGNS FOR MAIN ST REPAIR

76306 12/13/2018 CHK

108

SPIEGEL & MCDIARMID LLP

LEGAL SERVICES - OCT 2018

686.00 1,500.00

LEGAL SERVICES - OCT 2018 Total for Check/Tran - 76306: 76307 12/13/2018 CHK

5153

TOTAL SECURITY SOLUTIONS

Bulletproof glass

7,018.80

Bulletproof glass Total for Check/Tran - 76307: 76308 12/13/2018 CHK

90

TOTAL TOOL SUPPLY INC

TOOL REPAIR

1,754.70 8,773.50 100.00

TOOL REPAIR

7.48

Discount Total for Check/Tran - 76308:

-1.07 106.41

76309 12/13/2018 CHK

222

UTILITY CONSULTANTS, INC

OIL SAMPLES

76310 12/13/2018 CHK

5219

VALLEY-RICH CO., INC

WATER MAIN - MAIN ST & HWY 169

76311 12/13/2018 CHK

2609

WASTE MANAGEMENT

ERMU GAS GENERATOR SERV AGRMNT-NOV 2018

33,350.67

LANDFILL GAS PLANT - NOV 2018

12,471.84 45,822.51

13.00 7,292.44

Total for Check/Tran - 76311:

25203

375.00 1,875.00

76312 12/13/2018 CHK

8808

WATER CONSERVATION SERVICE, INC. LEAK LOCATE - MAIN ST & HWY 169

327.29

76313 12/13/2018 CHK

135

WATER LABORATORIES INC

WATER TESTING - NOV 2018

240.00

76314 12/13/2018 CHK

55

WESCO RECEIVABLES CORP.

Labels

336.66

76315 12/13/2018 CHK

3360

ZAK PARCEL SERVICE INC

SHIPPING

76316 12/18/2018 CHK

9420

MPB, LLC

WAC REFUND

76317 12/18/2018 CHK

5221

MITCHELL SPARGUR

WAC REIMBURSEMENT - PID 75-002-4302

182.06

WAC REIMBURSEMENT - PID 75-002-4302

-4,079.91

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9.63 8,114.60

Elk River Municipal Utilities 12/31/2018

Revision: 92788

Accounts Payable Check Register

10:22:33 AM

Page 13

12/01/2018 To 12/31/2018 Bank Account: 1 - GENERAL FUND Check / Tran Date

Pmt Type

Vendor

Vendor Name

Reference

Amount

WAC REIMBURSEMENT - PID 75-002-4302

1,113.79

WAC REIMBURSEMENT - PID 75-002-4302

3,532.99 748.93

Total for Check/Tran - 76317: 76318 12/20/2018 CHK

9997

ALBIS ALMANZAR

INACTIVE REFUND

76319 12/20/2018 CHK

2512

AMARIL UNIFORM COMPANY

EMPLOYEE CLOTHING - STUHR

258.50

76320 12/20/2018 CHK

1

AMERICAN PUBLIC POWER ASSOCIATI 2019 E & O TECH CONF - 6 72 152

2,335.00

58.89

2019 APPA LEGIS RALLY - 72 150 Total for Check/Tran - 76320: 76321 12/20/2018 CHK

9997

JAMES ANDERSON

INACTIVE REFUND

76322 12/20/2018 CHK

1253

B & B TRANSFORMER INC

REFURBISHED TRANSFORMERS

76323 12/20/2018 CHK

6

BEAUDRY OIL COMPANY

DIESEL

76324 12/20/2018 CHK

9997

BRENDA M BENSON

INACTIVE REFUND

13.95

76325 12/20/2018 CHK

9997

BENZINGER HOMES

Credit Balance Refund

470.78

76326 12/20/2018 CHK

9997

BENZINGER HOMES

Credit Balance Refund

102.58

76327 12/20/2018 CHK

9

BORDER STATES ELECTRIC SUPPLY

PADDLE

-23.65

500 Paddle

367.71

5.18 7,350.00 14,816.23

Glove Kit Total for Check/Tran - 76327:

25203

760.00 3,095.00

201.36 545.42

76328 12/20/2018 CHK

9997

CURTIS BOSTROM

INACTIVE REFUND

16.22

76329 12/20/2018 CHK

9997

DAVID C BREIWICK

INACTIVE REFUND

26.54

76330 12/20/2018 CHK

97

BRENTESON COMPANIES, INC

WIDWEST ONE BANK - REPAIR STORM PIPE

76331 12/20/2018 CHK

9997

MICHAEL BREUER

INACTIVE REFUND

76332 12/20/2018 CHK

9997

CAPSTONE HOMES

DEP To AP

251.38

76333 12/20/2018 CHK

9997

CAPSTONE HOMES

DEP To AP

251.48

76334 12/20/2018 CHK

9997

CAPSTONE HOMES

Credit Balance Refund

493.72

/pro/rpttemplate/acct/2.43.1/ap/AP_CHK_REGISTER.xml.rpt

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16,763.63 23.26

Elk River Municipal Utilities 12/31/2018

Revision: 92788

Accounts Payable Check Register

10:22:33 AM

Page 14

12/01/2018 To 12/31/2018 Bank Account: 1 - GENERAL FUND Check / Tran Date

Pmt Type

Vendor

Vendor Name

Reference

Amount

76335 12/20/2018 CHK

9997

CAPSTONE HOMES

Credit Balance Refund

268.67

76336 12/20/2018 CHK

9997

DAVID CEASON

INACTIVE REFUND

34.57

76337 12/20/2018 CHK

493

CHARLIE BROWN SHELL

KEROSENE

95.23

76338 12/20/2018 CHK

9997

CHOICE HOMES

DEP To AP

252.47

76339 12/20/2018 CHK

9997

DEGREEF PROPERTIES

INACTIVE REFUND

133.20

76340 12/20/2018 CHK

9997

AMY DOAN

INACTIVE REFUND

65.69

76341 12/20/2018 CHK

9997

DR HORTON, INC

DEP To AP

76342 12/20/2018 CHK

4252

ELK RIVER HEATING & AIR CONDITION SEMI-ANNUAL MTC - PLANT

251.61 136.00

SEMI-ANNUAL MTC - PLANT Total for Check/Tran - 76342: 76343 12/20/2018 CHK

23

ELK RIVER MUNICIPAL UTILITIES

CYCLE 4 - INV GRP 396 - NOV 2018

118.11

CYCLE 4 - INV GRP 415 - NOV 2018

175.00

CYCLE 4 - INV GRP 415 - NOV 2018 Total for Check/Tran - 76343: 76344 12/20/2018 CHK

122

ELK RIVER WINLECTRIC CO

1,311.56 1,604.67

RATCHET CABLE CUTTER

-14.13

Ratchet Cutter

219.61

4" Pipe Strap

12.77

PARTS - WELL #3

427.32

CONDUIT

67.45

2" Sch 40 Conduit Total for Check/Tran - 76344:

83.90 796.92

76345 12/20/2018 CHK

671

FASTENAL COMPANY

PROPANE GAS CYLINDER

76346 12/20/2018 CHK

9997

SHAINE GARCIA

INACTIVE REFUND

76347 12/20/2018 CHK

8469

KATHY GREENBERG

YEAR-END SEMINAR MILEAGE - GREENBERG

28.78

YEAR-END SEMINAR MILEAGE - GREENBERG

7.19 35.97

25.81 147.82

Total for Check/Tran - 76347: 25203

34.00 170.00

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Elk River Municipal Utilities 12/31/2018

Revision: 92788

Accounts Payable Check Register

10:22:33 AM

Page 15

12/01/2018 To 12/31/2018 Bank Account: 1 - GENERAL FUND Check / Tran Date

Pmt Type

Vendor

Vendor Name

Reference

Amount

76348 12/20/2018 CHK

846

HACH COMPANY

REFILL VIAL

50.39

76349 12/20/2018 CHK

9997

DANIEL HAGESETH

INACTIVE REFUND

19.36

76350 12/20/2018 CHK

4984

ANGELA HAUGE

WELLNESS BIOMETRIC SNACKS

61.37

76351 12/20/2018 CHK

9997

KELLY HIRDLER

INACTIVE REFUND

115.50

76352 12/20/2018 CHK

9997

MATTHEW HOPPING

INACTIVE REFUND

73.41

76353 12/20/2018 CHK

9997

ELLEN HOWARD

INACTIVE REFUND

336.07

76354 12/20/2018 CHK

169

HRDIRECT

POSTER GUARD 1 YR RENEWAL

67.53

POSTER GUARD 1 YR RENEWAL

16.89

POSTER GUARD ANNUAL RENEWAL

67.53

POSTER GUARD ANNUAL RENEWAL Total for Check/Tran - 76354: 76355 12/20/2018 CHK

9997

KENDRICK HUDSON

INACTIVE REFUND

76356 12/20/2018 CHK

33

ITRON INC

HARDWARE MTC - 11/1/18 to 10/31/19

6,557.42

HARDWARE MTC - 11/1/18 to 10/31/19

1,639.36 8,196.78

54.96

Total for Check/Tran - 76356:

25203

16.89 168.84

76357 12/20/2018 CHK

9997

PEGGY JONES

INACTIVE REFUND

54.32

76358 12/20/2018 CHK

9997

FLORENCE KENNEY

INACTIVE REFUND

49.29

76359 12/20/2018 CHK

9997

ALISHA KISH

INACTIVE REFUND

190.34

76360 12/20/2018 CHK

9997

LANDMARK MOTEL

INACTIVE REFUND

179.19

76361 12/20/2018 CHK

9997

JOHN LAROCQUE

INACTIVE REFUND

101.30

76362 12/20/2018 CHK

9997

LENNAR HOMES

Credit Balance Refund

250.34

76363 12/20/2018 CHK

9997

LENNAR HOMES

Credit Balance Refund

180.78

76364 12/20/2018 CHK

9997

KEVIN LIN

INACTIVE REFUND

47.22

76365 12/20/2018 CHK

9273

METERING & TECHNOLOGY SOLUTION MAG METER PRINTED CIRCUIT BOARD

76366 12/20/2018 CHK

9997

KERSTEN MIDDLETON

INACTIVE REFUND

/pro/rpttemplate/acct/2.43.1/ap/AP_CHK_REGISTER.xml.rpt

18

800.00 29.95

Elk River Municipal Utilities 12/31/2018

Revision: 92788

Accounts Payable Check Register

10:22:33 AM

Page 16

12/01/2018 To 12/31/2018 Bank Account: 1 - GENERAL FUND Check / Tran Date

Pmt Type

Vendor

Vendor Name

Reference

Amount

76367 12/20/2018 CHK

9997

ANNETTE MILLER

INACTIVE REFUND

76368 12/20/2018 CHK

120

NAPA AUTO PARTS

MISC PARTS & SUPPLIES

11.75

76369 12/20/2018 CHK

7797

JENNIE NELSON

LEADERSHIP ACADEMY MILEAGE - NELSON

45.34

LEADERSHIP ACADEMY MILEAGE - NELSON

11.34 56.68

197.52

Total for Check/Tran - 76369: 76370 12/20/2018 CHK

9997

KASSIE NELSON

INACTIVE REFUND

76371 12/20/2018 CHK

622

OFFICE FURNITURE SOLUTIONS,INC

REPAIR SIT/STAND DESK

82.73 289.92

REPAIR SIT/STAND DESK

72.49

RE-CONFIGURE OFFICE SPACE

6,796.31

RE-CONFIGURE OFFICE SPACE Total for Check/Tran - 76371: 76372 12/20/2018 CHK

8702

OMANN CONTRACTING COMPANIES, I WATERMAIN BREAK - 193RD & CARSON

76373 12/20/2018 CHK

9997

ANGELA PASBRIG

INACTIVE REFUND

60.18

76374 12/20/2018 CHK

9997

CHRISTINA PAULSEN

INACTIVE REFUND

21.89

76375 12/20/2018 CHK

9997

IGOR PEREPECHKIN

INACTIVE REFUND

33.35

76376 12/20/2018 CHK

9997

SHIRLEY PETERSON

INACTIVE REFUND

76.85

76377 12/20/2018 CHK

9997

PROGRESSIVE BUILDERS INC

Credit Balance Refund

202.43

76378 12/20/2018 CHK

3218

RDO EQUIPMENT

CHIPPER REPAIR

6,250.00

-46.50

Chipper Total for Check/Tran - 76378: 76379 12/20/2018 CHK

130

RESCO

FIBERGLASS ARM Total for Check/Tran - 76379:

76380 12/20/2018 CHK

9997

TANYA SCHWANTES

INACTIVE REFUND

76381 12/20/2018 CHK

229

SHERBURNE COUNTY ZONING

PROMISSORY NOTE & SECURITY AGREEMENT

/pro/rpttemplate/acct/2.43.1/ap/AP_CHK_REGISTER.xml.rpt

19

1,802.84 1,756.34 4,336.50

Discount

25203

1,699.08 8,857.80

-2.17 4,334.33 178.58 16,743.00

Elk River Municipal Utilities 12/31/2018

Revision: 92788

Accounts Payable Check Register

10:22:33 AM

Page 17

12/01/2018 To 12/31/2018 Bank Account: 1 - GENERAL FUND Check / Tran Date

Pmt Type

Vendor

Vendor Name

Reference

76382 12/20/2018 CHK

6107

STUART C. IRBY CO.

Black Tape

76383 12/20/2018 CHK

90

TOTAL TOOL SUPPLY INC

Charger

Amount 395.00 59.85

Discount Total for Check/Tran - 76383: 76384 12/20/2018 CHK

9997

VETERAN UNDERGROUND LLC

DEP To AP

253.52

76385 12/20/2018 CHK

9997

WASHINGTON STREET INVESTORS

Credit Balance Refund

227.20

76386 12/20/2018 CHK

55

WESCO RECEIVABLES CORP.

Secondary Short Bar

265.96

76387 12/20/2018 CHK

9997

JOAN ZABEE

INACTIVE REFUND

76388 12/20/2018 CHK

3360

ZAK PARCEL SERVICE INC

SHIPPING

76389 12/27/2018 CHK

1

AMERICAN PUBLIC POWER ASSOCIATI 2019 DEED PROGRAM ANNUAL DUES

26.37 9.96 3,196.10

2019 LINEWORKERS RODEO - 6 111 112 148 Total for Check/Tran - 76389:

510.00 3,706.10

76390 12/27/2018 CHK

1327

AUTOMATIC SYSTEMS CO

SERVICE FOR WELL #9

310.80

76391 12/27/2018 CHK

9997

CAROL BAHR

INACTIVE REFUND

163.42

76392 12/27/2018 CHK

9997

BRIDGET BASSETT

INACTIVE REFUND

14.43

76393 12/27/2018 CHK

2920

BATTERIES PLUS BULBS

BATTERIES

14.75

76394 12/27/2018 CHK

8840

BLUE 42

MONTHLY HOSTING OF WEBSITE

59.60

MONTHLY HOSTING OF WEBSITE

59.60

MONTHLY HOSTING OF WEBSITE

29.80 149.00

Total for Check/Tran - 76394:

25203

-0.56 59.29

76395 12/27/2018 CHK

9997

JULIE BRADBURY

INACTIVE REFUND

163.28

76396 12/27/2018 CHK

9997

THOMAS BREDECK

INACTIVE REFUND

10.41

76397 12/27/2018 CHK

9997

SEAN BROWN

INACTIVE REFUND

76.91

76398 12/27/2018 CHK

5068

CINTAS

REPLENISH 1ST AID CABINETS

32.54

REPLENISH 1ST AID CABINETS

8.14

/pro/rpttemplate/acct/2.43.1/ap/AP_CHK_REGISTER.xml.rpt

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Elk River Municipal Utilities 12/31/2018

Revision: 92788

Accounts Payable Check Register

10:22:33 AM

Page 18

12/01/2018 To 12/31/2018 Bank Account: 1 - GENERAL FUND Check / Tran Date

Pmt Type

Vendor

Vendor Name

Reference

Amount Total for Check/Tran - 76398:

76399 12/27/2018 CHK

11

CITY OF ELK RIVER

FRANCHISE FEE CREDIT - OCT 2018

-975.00

SEWER BILLED - NOV 2018

178,552.72

SEWER BILLED - NOV 2018 LESS ASSESS

-1,270.65

BAGS BILLED - NOV 2018

14.00

GARBAGE BILLED - NOV 2018

129,188.07

GARBAGE BILLED - NOV 2018 LESS ASSESS

-2,596.80

ORGANICS BILLED - NOV 2018

531.21

STICKERS BILLED - NOV 2018

138.00

STORMWATER BILLED - NOV 2018

40,826.95

STORMWATER BILLED - NOV 2018 LESS ASSESS REVENUE TRANSFER - NOV 2018 Total for Check/Tran - 76399:

-622.31 92,285.30 436,071.49

76400 12/27/2018 CHK

9997

SHERWIN COHRS

INACTIVE REFUND

40.99

76401 12/27/2018 CHK

9997

WALTER COOPER

INACTIVE REFUND

124.09

76402 12/27/2018 CHK

7448

CRC

CUSTOMER SERVICE FOR AFTER HOURS

2,019.37

CUSTOMER SERVICE FOR AFTER HOURS Total for Check/Tran - 76402: 76403 12/27/2018 CHK

5019

DELTA DENTAL OF MINNESOTA

504.85 2,524.22

DENTAL INSURANCE - JAN 2019

2,136.01

DENTAL INSURANCE - JAN 2019

799.09

DENTAL INSURANCE - JAN 2019

514.20

DENTAL INSURANCE - JAN 2019 Total for Check/Tran - 76403:

25203

40.68

INACTIVE REFUND

84.32 3,533.62

76404 12/27/2018 CHK

9997

BEN DOSE

76405 12/27/2018 CHK

4252

ELK RIVER HEATING & AIR CONDITION TUBE HEATER REPAIR - PLANT

420.00

76406 12/27/2018 CHK

23

ELK RIVER MUNICIPAL UTILITIES

CYCLE 1 - INV GRP 101 - NOV 2018

837.80

CYCLE 1 - INV GRP 101 - NOV 2018

642.49

CYCLE 1 - INV GRP 101 - NOV 2018

36.68

/pro/rpttemplate/acct/2.43.1/ap/AP_CHK_REGISTER.xml.rpt

21

34.48

Elk River Municipal Utilities 12/31/2018

Revision: 92788

Accounts Payable Check Register

10:22:33 AM

Page 19

12/01/2018 To 12/31/2018 Bank Account: 1 - GENERAL FUND Check / Tran Date

Pmt Type

Vendor

Vendor Name

Reference

Amount

CYCLE 1 - INV GRP 101 - NOV 2018

949.03

CYCLE 1 - INV GRP 101 - NOV 2018

355.89

CYCLE 1 - INV GRP 101 - NOV 2018

237.26

CYCLE 1 - INV GRP 325 - NOV 2018

525.00

CYCLE 1 - INV GRP 325 - NOV 2018

14,161.91

CYCLE 1 - ACCT 183 - NOV 2018

1,928.06

CYCLE 1 - INV GRP 421 - NOV 2018 Total for Check/Tran - 76406: 76407 12/27/2018 CHK

638

ELK RIVER ROTARY CLUB

MEMBERSHIP DUES - JAN '19 to JUNE '19

120.00

MEMBERSHIP DUES - JAN '19 to JUNE '19

30.00 150.00

Total for Check/Tran - 76407: 76408 12/27/2018 CHK

80

GRAINGER

AUTO DRAIN VALVE

106.33

76409 12/27/2018 CHK

9997

BRIAN HANSON

INACTIVE REFUND

122.34

76410 12/27/2018 CHK

9997

SARAH HARVALA

INACTIVE REFUND

97.93

76411 12/27/2018 CHK

809

HAWKINS, INC.

WATER CHEMICALS

76412 12/27/2018 CHK

824

HOME DEPOT CREDIT SERVICES

HOME DEPOT

67.07

76413 12/27/2018 CHK

9997

RYAN HORNER

INACTIVE REFUND

11.83

76414 12/27/2018 CHK

297

JACK HENRY & ASSOCIATES, INC

ACH TRANSACTIONS

1,007.18

187.76

ACH TRANSACTIONS Total for Check/Tran - 76414:

25203

3,844.92 23,519.04

46.94 234.70

76415 12/27/2018 CHK

9997

BRADLEY JENSON

INACTIVE REFUND

28.77

76416 12/27/2018 CHK

9997

TERESA JONES

INACTIVE REFUND

6.59

76417 12/27/2018 CHK

9997

MANOP KAEOKA

INACTIVE REFUND

64.56

76418 12/27/2018 CHK

9997

ALEKSANDER KEBERNIK

INACTIVE REFUND

162.50

76419 12/27/2018 CHK

9997

JAKE LARSEN

INACTIVE REFUND

52.03

76420 12/27/2018 CHK

48

LEAGUE OF MN CITIES INS TRUST

LIABILITY INSURANCE - 7/1/18 to 7/1/19

/pro/rpttemplate/acct/2.43.1/ap/AP_CHK_REGISTER.xml.rpt

22

26,611.22

Elk River Municipal Utilities 12/31/2018

Revision: 92788

Accounts Payable Check Register

10:22:33 AM

Page 20

12/01/2018 To 12/31/2018 Bank Account: 1 - GENERAL FUND Check / Tran Date

Pmt Type

Vendor

Vendor Name

Reference

Amount

LIABILITY INSURANCE - 7/1/18 to 7/1/19 Total for Check/Tran - 76420: 76421 12/27/2018 CHK

9997

AMANDA LEFEBVRE

Credit Balance Refund

76422 12/27/2018 CHK

7460

MAGNATROL VALVE CORP.

COIL & NAMEPLATE

-4.72

Coil

56.94

705.85

NP-E Total for Check/Tran - 76422: 76423 12/27/2018 CHK

145

MENARDS

EXTRA COARSE SALT

138.72 37.40

MISC PARTS & SUPPLIES - WELL #4

32.80

WALL CLOCK

13.88

MISC PARTS & SUPPLIES - WELL #6

72.09

MISC PARTS & SUPPLIES

12.76

MISC PARTS & SUPPLIES

89.66

MISC PARTS & SUPPLIES

140.89

U-BOLT, WD40

11.94

MISC PARTS & SUPPLIES - WELL #4

20.07

MISC PARTS & SUPPLIES - WELL #4

2.34

MISC PARTS & SUPPLIES - WELL #4

14.49 -8.49

MISC PARTS & SUPPLIES - BORE RIG Total for Check/Tran - 76423: 76424 12/27/2018 CHK

330

METRO SALES, INC

16.40 68.62

CHARGER - LARGE PORTABLE GENERATOR

MISC PARTS & SUPPLIES - WELL #4

LEASE FOR COPIER AT OFFICE

14.91 593.46 119.70

LEASE FOR COPIER AT OFFICE Total for Check/Tran - 76424:

25203

3,294.78 29,906.00

29.93 149.63

76425 12/27/2018 CHK

7293

MINNESOTA DEPT OF COMMERCE

CIP 2019 INDIRECT ASSESSMENT - QTR 3

7,775.43

76426 12/27/2018 CHK

16

MINNESOTA DEPT OF HEALTH

2018 QTR 4 WATER SUPPLY SERVICE CONN FEE

8,109.00

76427 12/27/2018 CHK

9215

NIGHTHAWK TOTAL CONTROL

TELEMETRY CHARGES - 1/1/19 to 3/31/19

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303.75

Elk River Municipal Utilities 12/31/2018

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10:22:33 AM

Page 21

12/01/2018 To 12/31/2018 Bank Account: 1 - GENERAL FUND Check / Tran Date

Pmt Type

76428 12/27/2018 CHK

Vendor

Vendor Name

Reference

Amount

9300

NISC

RECURRING INVOICE - NOV 2018

53.23

RECURRING INVOICE - NOV 2018

9,531.34

RECURRING INVOICE - NOV 2018

1,515.32

AMS INVOICE - NOV 2018

5,136.99

AMS INVOICE - NOV 2018

1,284.24

MISC INVOICE - NOV 2018

296.69

MISC INVOICE - NOV 2018 Total for Check/Tran - 76428: 76429 12/27/2018 CHK

9997

DAVID ORTON

INACTIVE REFUND

303.33

76430 12/27/2018 CHK

9997

ALEX PALMER

INACTIVE REFUND

65.01

76431 12/27/2018 CHK

5056

PLAISTED COMPANIES, INC.

FILL SAND

15.13

FILL SAND

29.57

1 1/2 TON RIVER ROCK

255.72

CLASS 5 GRAVEL

100.15

FILL SAND

24.28

FILL SAND

22.22

FILL SAND

14.81

FILL SAND Total for Check/Tran - 76431: 76432 12/27/2018 CHK

71

PRINCIPAL LIFE INSURANCE CO GRAN LIFE & LTD INSURANCE - JAN 2019

15.87 477.75 1,690.67

LIFE & LTD INSURANCE - JAN 2019 Total for Check/Tran - 76432:

322.85 2,013.52

76433 12/27/2018 CHK

9997

NATALIE REARDON

INACTIVE REFUND

250.44

76434 12/27/2018 CHK

130

RESCO

FINISHED PADMOUNT DOOR & SILL

313.14

76435 12/27/2018 CHK

566

RIKE-LEE ELECTRIC INC.

INSTALL METER FOR SIREN POLE

-0.07

INSTALL METER FOR SIREN POLE

281.09 281.02

Total for Check/Tran - 76435: 76436 12/27/2018 CHK 25203

74.17 17,891.98

9997

DARRELL ROBERTS

INACTIVE REFUND

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201.17

Elk River Municipal Utilities 12/31/2018

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10:22:33 AM

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12/01/2018 To 12/31/2018 Bank Account: 1 - GENERAL FUND Check / Tran Date

Pmt Type

Vendor

Vendor Name

Reference

Amount

76437 12/27/2018 CHK

9997

JASON SALZWEDEL

INACTIVE REFUND

16.83

76438 12/27/2018 CHK

9997

MIKE SCHULER

INACTIVE REFUND

303.51

76439 12/27/2018 CHK

9997

MICHAEL SCHWINGLE

INACTIVE REFUND

23.62

76440 12/27/2018 CHK

9997

NICHOLAS SPETZ

INACTIVE REFUND

16.85

76441 12/27/2018 CHK

9997

MICHELLE SPRINGER

INACTIVE REFUND

90.68

76442 12/27/2018 CHK

8948

TRYCO LEASING INC.

LEASE FOR COPIER AT PLANT

112.20

LEASE FOR COPIER AT PLANT Total for Check/Tran - 76442: 76443 12/27/2018 CHK

9997

JOSEPH VARGAS

INACTIVE REFUND

76444 12/27/2018 CHK

55

WESCO RECEIVABLES CORP.

MACHINE BELT

286.00 -5.78

5/8" x 12" Machine Bolt Total for Check/Tran - 76444:

89.78 84.00

76445 12/27/2018 CHK

9997

RAYMOND E WILLIAMS

INACTIVE REFUND

31.08

76446 12/27/2018 CHK

9997

ANDREA WREN

INACTIVE REFUND

101.23

76447 12/27/2018 CHK

3360

ZAK PARCEL SERVICE INC

SHIPPING

76448 12/27/2018 CHK

9997

MELISSA COLLINS

INACTIVE REFUND

32.66

76449 12/27/2018 CHK

9997

QIANG DONG

INACTIVE REFUND

139.42

76450 12/27/2018 CHK

9997

KATHLEEN HELLERSTEDT

INACTIVE REFUND

689.54

76451 12/27/2018 CHK

9997

JAIME MARTINEZ

INACTIVE REFUND

164.13

76452 12/27/2018 CHK

9997

VARTAN SAHAKIAN

INACTIVE REFUND

120.85

76453 12/27/2018 CHK

9997

OLIVIA STELTEN

INACTIVE REFUND

213.46

76454 12/27/2018 CHK

9997

LORETTA ULFERTS

INACTIVE REFUND

117.23

76457 12/27/2018 CHK

314

CAER FOOD SHELF

2018 HEATSHARE DONATION

9.63

64.26 Total for Bank Account - 1 :

25203

28.04 140.24

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(240)

3,379,749.27

Elk River Municipal Utilities 12/31/2018

10:22:33 AM

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Page 23

Grand Total :

25203

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(240)

3,379,749.27

Elk River Municipal Utilities 12/31/2018

10:22:33 AM

Accounts Payable Check Register PARAMETERS ENTERED: Check Date: Bank: Vendor: Check: Journal: Format: Extended Reference: Sort By: Voids: Payment Type: Group By Payment Type: Minimum Amount: Authorization Listing: Authorization Comments: Credit Card Charges:

25203

12/01/2018 To 12/31/2018 All All All All GL References/Amounts No Check/Transaction None All No 0.00 No No No

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ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION HELD AT UTILITIES CONFERENCE ROOM December 11, 2018 Members Present:

Chair John Dietz; Vice Chair Al Nadeau; Commissioners Paul Bell, Mary Stewart, and Matt Westgaard ERMU Staff Present: Troy Adams, General Manager; Theresa Slominski, Finance and Office Manager; Mark Fuchs, Electric Superintendent; Mike Tietz, Technical Services Superintendent; Eric Volk, Water Superintendent; Tom Sagstetter, Conservation & Key Accounts Manager; Michelle Canterbury, Executive Administrative Manager; Jennie Nelson, Customer Service Manager; Tony Mauren, Communications & Administrative Coordinator Others Present: Cal Portner, City Administrator; Peter Beck, Attorney; and Teri Heaton, Springsted Senior Vice President/Client Representative

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 Ms. Slominski requested to move up agenda item 6.2, Bond Recap, to immediately follow 1.4, Water Fluoridation Quality Award. Moved by Commissioner Westgaard and seconded by Commissioner Nadeau to approve the amended December 11, 2018, agenda. Motion carried 5-0.

1.4

Water Fluoridation Quality Award Mr. Volk announced that the U.S. Department of Health and Human Services for Disease Control has recognized Elk River for achieving excellence in community water fluoridation by maintaining

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Regular Meeting of the Elk River Municipal Utilities Commission December 11, 2018 28

a consistent level of fluoride in the drinking water throughout 2017. He shared that the achievement of receiving this award is a testament to the attention to detail the water operators demonstrate on a daily basis. Chair Dietz inquired as to how many water departments receive this award. Mr. Volk responded that in Minnesota approximately 200 of the 600 possible fluoridating communities are receiving the award. Ms. Canterbury shared that staff will be promoting this achievement on ERMU’s social media platforms. The Commission congratulated the water department on their achievement. 6.2

Bond Recap Ms. Heaton, Senior Vice President with Springsted, was in attendance and brought cake to celebrate our bonding issuance and sale that took place on August 29, 2018. Ms. Heaton provided an update on the market and shared that the timing of our bonding couldn’t have been better. Since the sale of the bonds, the interest rates have been climbing up, which would have resulted in $360,000 to $700,000 in additional interest paid for the life of the bonds. Ms. Heaton touched on ERMU’s Moody’s investor rating which contributed to a true interest cost of 3.52% the day of sale, compared to the index at 4.47%; this resulted in almost a whole percentage point less due to the tremendous Aa3 rating. Ms. Heaton also went over the factors that could lead to a Moody’s rating upgrade. There was brief discussion on rating upgrades and when they may occur.

2.0

CONSENT AGENDA (Approved By One Motion) Moved by Commissioner Nadeau and seconded by Commissioner Westgaard to approve the Consent Agenda as follows: 2.1 2.2 2.3 2.4 2.5 2.6 2.7

November Check Register November 13, 2018 Regular Meeting Minutes November 13, 2018 Closed Meeting Minutes Summary of General Manager Performance Evaluation 2019 Official Depository 2019 Official Newspaper 2019 Utilities Commission Meeting Schedule

Motion carried 5-0. 3.0

OPEN FORUM No one appeared for open forum.

4.0

POLICY & COMPLIANCE

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Regular Meeting of the Elk River Municipal Utilities Commission December 11, 2018 29

4.1

Performance Metrics and Incentive Compensation Policy Per our policy, the metrics for measurement of the designated year need to be determined before the start of the designated year; this allows for changes to be made and communicated in a timely manner before performance measurement begins. Mr. Adams presented the proposed Performance Metrics and Incentive Policy Score Card. No changes were being recommended for 2019. Mr. Adams informed the Commission that staff will continue to evaluate the customer satisfaction survey component of the Utilities Performance Metrics and Incentive Compensation for viable options to incorporate for measurement in 2020. Moved by Commissioner Bell and seconded by Commissioner Stewart to approve the Performance Metrics and Incentive Compensation Score Card for 2019. Motion carried 5-0.

4.2

Agenda Planning Policy and the Annual Governance Agenda Mr. Adams provided some background on the Agenda Planning Policy. He shared that when it was developed the rolling two year agenda requirement was a discussion point. It was questioned whether a two year forward looking agenda was needed, or if an annual agenda would suffice. After application of this new governance policy, staff recommended changing the two year requirement to a one year annual requirement. Mr. Adams presented two other changes to the policy as outlined in his memo. Mr. Adams presented the proposed 2019 Annual Governance Agenda. Mr. Adams explained that the annual agenda will provide transparency for the occurrence of the most critical responsibilities of the commission. Moving forward, the Annual Governance Agenda will be included in the Future Planning section of the commission meeting agenda. Moved by Commissioner Westgaard and seconded by Commissioner Nadeau to adopt the revised Agenda Planning Policy. Motion carried 5-0. Moved by Commissioner Bell and seconded by Commissioner Westgaard to adopt the 2019 Governance Agenda. Motion carried 5-0.

5.0

BUSINESS ACTION

5.1

Financial Report – October 2018 Ms. Slominski presented the October 2018 financial report. The Commission had a few questions on the accumulated depreciation. Staff responded. Moved by Commissioner Stewart and seconded by Commissioner Nadeau to receive and file the October 2018 Financial Report. Motion carried 5-0.

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Regular Meeting of the Elk River Municipal Utilities Commission December 11, 2018 30

5.2

Wage & Benefits Committee Update At the November 13 Commission meeting, the Commission directed the Wage & Benefits Committee (W&BC) to benchmark the management pay group and report back to the Commission at the December meeting. The W&BC met just prior to the Commission meeting to review the benchmarking data. Mr. Adams shared that after review of the data, the W&BC is recommending contracting with a third party to do a pay plan evaluation with a concentration on the management pay group. Chair Dietz elaborated on the benefits of hiring a third party to evaluate these positions; preferably somebody that is familiar with the utility industry. He recommended that staff bring back three to four proposals for consideration at the January Commission meeting. Moved by Commissioner Nadeau and seconded by Commissioner Stewart directing staff to solicit proposals for a pay plan evaluation. Motion carried 5-0.

5.3

2019 Annual Business Plan In November, the preliminary 2019 Annual Business Plan was presented to the Commission. Mr. Adams shared that there have been several changes due to the finalizing of projects and expenses, and the most significant change is due to the implementation of electric rate reductions at the direction of the Commission. As outlined in his memo, Mr. Adams presented the proposed electric rates and explained that the reset of rates will affect consumers differently depending on usage. He shared that a typical residential customer should experience an approximate 5% reduction in electric costs, and commercial customers should experience between a 4% to 5% reduction. Mr. Adams noted that staff is also proposing the implementation of a Large Demand Electric Service Rate which is reflected in the budget. Mr. Adams presented the proposed residential water rates which reflected a projected 1.72% annual water cost increase for a typical residential customer; this is equivalent to less than a $5.00 increase for the year. Commercial customers will experience a blended rate increase of 2% or less depending on usage. Commissioner Stewart had a question on power cost adjustment credits (PCAs) and wanted to know if we have given them back or if they were still on the books. Staff responded that with the change in whole power providers, the intent was to pass along the accumulated PCA credits in their entirety to our customers in 2018. Commissioner Stewart expressed her concerns about doing a 5% rate reduction and asked if staff had done a multi-year rate projection. Mr. Adams responded. Commissioner Stewart also had some questions and concerns about the HWY 169 project and how that may affect future rates. There was discussion on the infrastructure in that area, and the impact of it not being fully depreciated. Commissioner Westgaard stated that it may be

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Regular Meeting of the Elk River Municipal Utilities Commission December 11, 2018 31

beneficial to identify the assets that would be affected to determine the total impact of writing them off. Staff shared that until the Minnesota Department of Transportation finalizes their plans for the project, they have no way of identifying which assets will be impacted. Commissioner Stewart inquired as to how often staff does a cost of service study. Staff responded that they had done one in 2016 and that it was based on Minnesota Municipal Power Agency (MMPA) rates. Commissioner Stewart pointed out that given the timeframe of the study, the cost of the HWY 169 project wouldn’t have been considered. She stated she was leery about reducing rates so significantly with all the unknowns. There was discussion on capital projects and the impact on rates and reserves. Mr. Adams shared that the proposed budget accommodates the rate reduction while still providing comfortable margins and contributions to reserves. After discussion, a majority of the Commission was in favor of the rate reduction, citing rates should reflect the cost of doing business today and ERMU’s strong reserves as contributing factors for their support. There was further discussion. Moved by Commissioner Nadeau and seconded by Commissioner Bell to adopt the 2019 Business Plan. Motion carried 4-1. Commissioner Stewart opposed. 6.0 BUSINESS DISCUSSION 6.1 Staff Updates Ms. Slominski brought in a sample of the bullet absorbing rubber material that was placed between the cabinets and the curved wood facing at the front counter. She shared that the bulletproof glass is being installed this Friday after regular business hours. Mr. Fuchs provided an update on the light pole that was struck by a vehicle on HWY 10. He shared that the replacement pole is on order and will be installed as soon as they receive it in. He informed the Commission that the driver who hit the pole was uninsured. There was discussion on prosecuting the driver for the offense, and getting a judgment for the costs associated with the damage. Once the final costs are determined, Attorney Beck will be working with staff to determine the best course of action. 6.3

Future Planning Chair Dietz announced the following: a. Regular Commission Meeting – January 8, 2019 b. Employee Recognition Luncheon – January 7, 2019, 12:00 – 1:00 p.m.

6.4

Other Business

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Regular Meeting of the Elk River Municipal Utilities Commission December 11, 2018 32

Commissioner Bell announced that he would not be in attendance at the January and February Commission meetings as he would be out of town. Chair Dietz suggested that he participate in at least one of the meetings via Skype. Mr. Adams stated that staff would set up a meeting for some time next week to go over the requirements of interactive meeting attendance and getting the Skype account setup on his iPad. Commissioner Nadeau asked to also be included in the instructional meeting as he may need to Skype in for the February Commission meeting. 7.0

ADJOURN REGULAR MEETING Moved by Commissioner Nadeau and seconded by Commissioner Bell to adjourn the regular meeting of the Elk River Municipal Utilities Commission at 4:32 p.m. Motion carried 5-0.

Minutes prepared by Michelle Canterbury.

___________________________________ John J. Dietz, ERMU Commission Chair ___________________________________ Tina Allard, City Clerk

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Regular Meeting of the Elk River Municipal Utilities Commission December 11, 2018 33

UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Tom Sagstetter – Conservation and Key Accounts Manager MEETING DATE: AGENDA ITEM NUMBER: January 8, 2019 2.3 SUBJECT: 2019 Schedule of Rates ACTION REQUESTED: Approve the revisions and additions to the 2019 Schedule of Rates BACKGROUND: In December, the 2019 Annual Business Plan was approved including the 2019 Schedule of Rates & Fees. On the approved rate sheets there were inconsistencies between the Terms of Payment language and the ERMU Service Policies that were revised as a result of multiple billing cycle changes. Additionally, the 2019 Annual Business Plan included one new rate and two clean energy programs that were not finalized at the time of approval. These items are being brought back for Commission approval. DISCUSSION: Staff is proposing to replace the Terms of Payment section in the attached individual rate sheets with a Billing and Terms of Payment section. The revised text will direct customers to the Service Policies for very specific information on billing due dates, penalties, and delinquent notices. This change eliminates the inaccurate information and eliminates the redundancy by directing customers to a single document. The Large Demand Electric Service Rate, along with the two new clean energy programs have been completed. The new rate and clean energy programs were included in the 2019 Budget. The Large Demand Electric Service Rate will be available for customers that receive primary service and have demand greater than 1 MW; it will also serve as an economic development tool to attract large electric use customers. The clean energy choice programs are a result of incorporating the Minnesota Municipal Power Agency Clean Energy Choice program into the portfolio of ERMU programs. These programs allow both residential and commercial customers to purchase renewable energy for an additional fee. Residential customers are able to select from three different participation levels and fees, and commercial customers are able to participate by signing a contract and agreeing to pay an incremental fee per kWh used on a monthly basis. ATTACHMENTS: Schedule of Rates  Proposed - Residential Clean Energy Choice Program Rate  Proposed - Commercial Clean Energy Choice Program Rate ______________________________________________________________________________ Page 1 of 2 34

             

Proposed - Large Demand Electric Service Rate Revised - Residential All Electric Service Rate Revised - Residential Electric Service Rate Revised - Non-Demand All Electric Service Rate Revised - Non-Demand Electric Service Rate Revised - Demand All Electric Service Rate Revised - Demand Electric Service Rate Revised - Off-Peak Demand Electric Service Rate Revised - Commercial All Electric with Ground Source Heat Pump Service Rate Revised - Ground Source Heat Pump Program Rate Revised - Electric Vehicle Charging Rates Revised - Street/Security Light Service Rate Revised - Water Service Rates ERMU Policy – A.1 – Service Policies Policy – for reference only  Section 2.0 Billing Due Dates  Section 3.0 Penalties and Delinquent Notices

______________________________________________________________________________ Page 2 of 2 35

RESIDENTIAL CLEAN ENERGY CHOICE PROGRAM RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable: To ERMU customers receiving service under another residential electric rate. This Program is available to residential customers choosing to purchase renewable energy. Customers’ will have the option to purchase 50, 75 or 100 percent of the monthly energy consumption from renewable energy sources. The customer shall agree to: 1. Complete an application - through the online registration process, or returning a printed copy to ERMU. 2. Clearly indicate the participation level and the additional monthly charge applicable to the 50, 75 or 100 percent subscription level desired. 3. Provide notice to Elk River Municipal Utilities to cancel participation. Elk River Municipal Utilities shall provide: 1. Monthly billing statement with the Clean Energy Choice participation level clearly identified. 2. The applicable incremental cost per participation level will be identified and added to the billing statement. Participation Level % 50 75 100

Monthly Charge $1 $2 $3

Adopted January 8, 2019 Effective January 1, 2019

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COMMERCIAL CLEAN ENERGY CHOICE PROGRAM RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable: To ERMU customers receiving service under another commercial electric rate. This Program is available to commercial customers choosing to purchase renewable energy. Customers’ will be required to participate for one calendar year and the applicable Clean Energy Choice incremental charge will apply to all energy sold in the calendar year. The customer shall agree to: 1. Contact ERMU staff to discuss program participation. 2. Sign a contractual agreement for one calendar year prior to December 1 for participation in the upcoming year. 3. Continue to participate in the program annually until customer provides written notice of cancelation to ERMU. 4. Provide written notice of cancelation in the program to ERMU prior to December 1 of a given year for the upcoming year. Elk River Municipal Utilities shall provide: 1. Estimate of annual incremental charge for participating in program. 2. Clean Energy Choice incremental charge per kWh is $0.001. 3. The incremental charge applies to all kWh purchases in excess of the Wholesale Renewable Energy Standard. 4. The incremental charge will be calculated based on actual kWh consumed in the billing period. 5. The incremental charge will be calculated as follows: [kWh consumed X (100% - Wholesale Renewable Energy Standard) X $0.001] 6. Monthly billing statement with the Clean Energy Choice incremental charge identified. 7. Program price changes by November 1 for the coming year.

Adopted January 8, 2019 Effective January 1, 2019

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37

LARGE INDUSTRIAL DEMAND ELECTRIC SERVICE RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable: Available for non-residential customer accounts. Existing or new Customer accounts with actual or projected demand greater than or equal to 1 MW. A Customer account with a billing demand of less than 1 MW for 12 consecutive months may be switched to the Demand Electric Service Rate. The Customer accounts shall be in compliance with all policies, procedures, safety requirements, and shall be taken through one meter. Not applicable to resale, standby or auxiliary service. Character Of Service: 3-Phase Primary, 3-phase, 7,200/12,470 volt, AC, 60 cycles. Special Conditions: Customer must provide a location suitable for the installation of a utility metering cabinet. Customer will be responsible for providing suitable wire and connection in the utility owned metering cabinet. One primary meter and cabinet shall be installed to service one class of business. If additional buildings are required for a given business, they shall be interconnected by the customer to obtain one meter, unless an exception is approved by management. If additional meters and services are requested by the customer, each shall be treated as a separate customer and billed individually; loads will not be aggregated ERMU equipment and metering must be accessible to ERMU 24 hours per day. Demand Service Rate: Basic Monthly Electric Charge: $100.00 per month.

Demand Charge: Energy Charge:

Summer

Winter

$15.00 $0.0644

$11.00 in kW / month $0.0644 in kWh / month

Summer Rate: Applicable during the five monthly billing periods of June – October. Winter Rate: Applicable during the seven monthly billing periods of November – May. Rates are subject to application of Power Cost Adjustment (PCA). Sales tax applicable unless exemption is filed. Minimum Bill: Maximum billing demand during previous twelve months times 3.0% of the demand charge, or the actual demand multiplied by the demand charge, whichever is greater plus $1.00 per kVA per month of excess transformer capacity requested by customer.

Page 1 of 2

38

Large Industrial Demand Electric Service Rate

Determination of Billing Demand: The billing demand shall be the highest measured demand (corrected for power factor if required) during any fifteen (15) minute period occurring in the current billing period. Fluctuating Loads: Customers operating equipment having a highly fluctuating or large instantaneous demand, such as welders and X-ray machines, shall be required to pay all non-betterment costs of isolating the load from the balance of ERMU’s system so that the load will not unduly interfere with service on ERMU’s lines. No motor larger than ten (10) HP (or 7.355 kW) will be allowed to be acrossthe-line started without notification and written authorization from ERMU. Power Factor Adjustment: Power factor adjustments may be made in the billing demand, when the power factor, as determined by test, at the time of the Customer’s maximum use is less than 95%. If the power factor, as measured by ERMU’s electric department, is lower than 95%, the monthly demand charge may be multiplied by the ratio 95% divided by the measured power factor, or at ERMU’s option, the power factor may be corrected at the Customer’s expense. Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and Delinquent Notices.) Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate. 2. Service will be furnished under ERMU Policies and rules. 3. Extensions made for service under this schedule are subject to the provisions of ERMU’s Elk River Municipal Utilities’ rules governing Extension of Service and Facilities. 4. The rates set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission, distribution, production, or the sale of electrical power. 5. Exceptions by management approval only.

Adopted January 8, 2019 Effective January 1, 2019

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RESIDENTIAL ALL ELECTRIC SERVICE RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable: To single-family residences and individually metered apartments for all domestic purposes with electric energy as a sole source of heating and lighting and when all service is supplied through a single meter, provided ratings of individual single-phase motors do not exceed five (5) horsepower. Character of Service: AC, 60 cycles, 120/240 volt, three wire, single-phase. Special Conditions: Residential service to a multiple dwelling or apartment house through a single meter is allowed for existing services only. Service under this rate schedule shall not be sub-metered and resold to the individual tenants on the basis of usage and the cost of electric service to the tenant must be furnished without specific charge or price which varies with the quantity of energy used. Any apartment or dwelling unit which has separate permanent kitchen facilities shall be considered as one single family private residence. Meter to be accessible to our service department at any time. Residential All Electric Service Rate: Basic Monthly Electric Charge: $13.50 per month Summer

Winter

$0.1270 / kWh / month

$0.1160 / kWh / month

Summer Rate: Applicable during the five monthly billing periods of June – October. Summer rates are subject to sales tax. Winter Rate: Applicable during the seven monthly billing periods of November – May. Winter rates are sales tax exempt. Rates are subject to application of Power Cost Adjustment (PCA). Minimum Bill: The Basic Monthly Electric Charge. Terms of Payment: Bills are due and payable upon receipt and are considered delinquent if not paid by the due date noted on the bill. There will be a ten (10) percent late payment charge added to all accounts that are not paid by the due date. Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and Delinquent Notices.) Page 1 of 2

40

Residential All Electric Service Rate

Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate or changing from summer to winter or from winter to summer rates. 2. Service will be furnished pursuant to Elk River Municipal Utilities’ customer service rules. 3. Extensions made for service under this schedule are subject to the provisions of Elk River Municipal Utilities’ rules governing Extension of Service and Facilities. 4. The rates set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission, distribution, production, or the sale of electrical power. 5. Exceptions by management approval only.

Adopted December 11, 2018 Revised January 8, 2019 Effective January 1, 2019

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RESIDENTIAL ELECTRIC SERVICE RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable: To single-family residences and individually metered apartments for all domestic purposes when all service is supplied through a single meter, provided ratings of individual single-phase motors do not exceed five (5) horsepower. Character of Service: AC, 60 cycles, 120/240 volt, three wire, single-phase. Special Conditions: Residential service to a multiple dwelling or apartment house through a single meter is allowed for existing services only. Service under this rate schedule shall not be sub-metered and resold to the individual tenants on the basis of usage and the cost of electric service to the tenant must be furnished without specific charge or price which varies with the quantity of energy used. Any apartment or dwelling unit which has separate permanent kitchen facilities shall be considered as one single family private residence. Meter to be accessible to our service department at any time. Residential Electric Service Rate: Basic Monthly Electric Charge: $13.50 per month Summer

Winter

$0.1270 / kWh / month

$0.1160 / kWh / month

Summer Rate: Applicable during the five monthly billing periods of June – October. Winter Rate: Applicable during the seven monthly billing periods of November – May. Rates are subject to application of Power Cost Adjustment (PCA). Sales tax is applicable. Minimum Bill: Basic Monthly Electric Charge. Terms of Payment: Bills are due and payable upon receipt and are considered delinquent if not paid by the due date noted on the bill. There will be a ten (10) percent late payment charge added to all accounts that are not paid by the due date. Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and Delinquent Notices.) Page 1 of 2

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Residential Electric Service Rate

Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate or changing from summer to winter or from winter to summer rates. 2. Service will be furnished pursuant to Elk River Municipal Utilities’ customer service rules. 3. Extensions made for service under this schedule are subject to the provisions of Elk River Municipal Utilities’ rules governing Extension of Service and Facilities. 4. The rates set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission, distribution, production, or the sale of electrical power. 5. Exceptions by management approval only.

Adopted December 11, 2018 Revised January 8, 2019 Effective January 1, 2019

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NON-DEMAND ALL ELECTRIC SERVICE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable: Available for non-residential customer accounts. Existing or new Customer accounts with actual or projected demands of less than 50 kW for the previous 12 consecutive months if applicable. When the Customer achieves an actual maximum demand of 50 kW or greater, the Customer will be placed on the Demand Electric Service rate in the next billing cycle. The Customer accounts shall be in compliance with all policies, procedures, and safety requirements, and shall be taken through one meter. Rating of individual single-phase motors and other single-phase power and heating units served under this schedule shall not exceed ten (10) horsepower (or 7.355 kW) except by special permission. (Not applicable to resale, standby or auxiliary service.) Character Of Service: AC, 60 cycles, 120 volts or 120/240 volts, single-phase; 120/208 volts, or 277/480 volts, three-phase. Four wire, 240 volts three phase will only be applicable to existing customers now being served by this voltage. A Customer requiring voltages other than that already established by Elk River Municipal Utilities shall be required to provide suitable space and location for Elk River Municipal Utilities’ transformers, metering and associated equipment. Special Conditions: One meter shall be installed to service one class of business. If additional buildings are required for a given business, they shall be interconnected by the customer to obtain one meter. If additional meters and services are requested by the customer, each shall be treated as a separate customer and billed individually. Installation of Demand Meter: At the option of Elk River Municipal Utilities, a demand meter may be installed on any customer whose monthly usage exceeds 15,000 kWh. Meter must be accessible to our service department at any time. Non-Demand All Electric Service Rate: Basic Monthly Electric Charge: $30.00 per month Summer

Winter

$0.1230 / kWh / month

$0.1030 / kWh / month

Summer Rate: Applicable during the five monthly billing periods of June – October. Summer rates are subject to sales tax unless an exemption is filed. Winter Rate: Applicable during the seven monthly billing periods of November – May. Winter rates are sales tax exempt and may require an exemption to be filed.

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Non-Demand All Electric Service Rate Rates are subject to application of Power Cost Adjustment (PCA). Minimum Bill: The Basic Monthly Electric Charge plus $1.00 per kVA per month of excess transformer capacity requested by customer. In case of equipment having abnormally low annual utilization factors or unusual operating characteristics, special minimum charges may be prescribed by Elk River Municipal Utilities. Power Factor Adjustment: The rates set forth in this schedule are based on the maintenance by the Customer of a power factor of not less than 95% at all times. If the power factor, as measured by the electric department, is lower than 95%, the monthly demand charge may be multiplied by the ratio 95% divided by the measured power factor, or at Elk River Municipal Utilities’ option, the power factor may be corrected at the Customer’s expense. Fluctuating Loads: Customers operating equipment having a highly fluctuating or large instantaneous demand, such as welders and X-ray machines, shall be required to pay all non-betterment costs of isolating the load from the balance of Elk River Municipal Utilities’ lines. No motor larger than ten (10) HP (or 7.355 kW) will be allowed to be across-the-line started without notification and written authorization from Elk River Municipal Utilities. In addition, Customers who fail to provide adequate corrective equipment shall be required to own and maintain their own transformers. Terms of Payment: Bills are due and payable upon receipt and are considered delinquent if not paid by the due date noted on the bill. There will be a ten (10) percent late payment charge added to all accounts that are not paid by the due date. Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and Delinquent Notices.) Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate or changing from summer to winter or from winter to summer rates. 2. Service will be furnished under the Elk River Municipal Utilities’ rules. 3. Extensions made for service under this schedule are subject to the provisions of Elk River Municipal Utilities’ rules governing Extension of Service and Facilities. 4. The rate set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission, distribution, production, or the sale of electrical power. 5. Exceptions by management approval only.

Adopted December 11, 2018 Revised January 8, 2019 Effective January 1, 2019

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NON-DEMAND ELECTRIC SERVICE RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory.. Applicable: Available for non-residential customer accounts. Existing or new Customer accounts with actual or projected demands of less than 50 kW for the previous 12 consecutive months if applicable. When the Customer achieves an actual maximum demand of 50 kW or greater, the Customer will be placed on the Demand Electric Service rate in the next billing cycle. The Customer accounts shall be in compliance with all policies, procedures, and safety requirements, and shall be taken through one meter. Rating of individual single-phase motors and other single-phase power and heating units served under this schedule shall not exceed ten (10) horsepower (or 7.355 kW) except by special permission. (Not applicable to resale, standby or auxiliary service.) Character Of Service: AC, 60 cycles, 120 volts or 120/240 volts, single-phase; 120/208 volts, or 277/480 volts, three-phase. Four wire, 240 volts three phase will only be applicable to existing customers now being served by this voltage. A Customer requiring voltages other than that already established by Elk River Municipal Utilities shall be required to provide suitable space and location for Elk River Municipal Utilities’ transformers, metering and associated equipment. Special Conditions: One meter shall be installed to service one class of business. If additional buildings are required for a given business, they shall be interconnected by the customer to obtain one meter. If additional meters and services are requested by the customer, each shall be treated as a separate customer and billed individually. Meter must be accessible to our service department at any time. Non-Demand Service Rate: Basic Monthly Electric Charge: $30.00 per month Summer

Winter

$0.1230 / kWh / month

$0.1030 / kWh / month

Summer Rate: Applicable during the five monthly billing periods of June – October. Winter Rate: Applicable during the seven monthly billing periods of November – May. Rates are subject to application of Power Cost Adjustment (PCA). Sales tax applicable unless exemption is filed.

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Non-Demand Electric Service Rate Minimum Bill: The Basic Monthly Electric Charge plus $1.00 per kVA per month of excess transformer capacity requested by customer. In the case of equipment having abnormally low annual utilization factors or unusual operating characteristics, special minimum charges may be prescribed by Elk River Municipal Utilities. Power Factor Adjustment: The rates set forth in this schedule are based on the maintenance by the Customer of a power factor of not less than 95% at all times. If the power factor, as measured by the electric department, is lower than 95%, the monthly demand charge may be multiplied by the ratio 95% divided by the measured power factor, or at Elk River Municipal Utilities’ option, the power factor may be corrected at the Customer’s expense. Fluctuating Loads: Customers operating equipment having a highly fluctuating or large instantaneous demand, such as welders and X-ray machines, shall be required to pay all non-betterment costs of isolating the load from the balance of Elk River Municipal Utilities’ lines. No motor larger than ten (10) HP (or 7.355 kW) will be allowed to be across-the-line started without notification and written authorization from Elk River Municipal Utilities. In addition, Customers who fail to provide adequate corrective equipment shall be required to own and maintain their own transformers. Terms of Payment: Bills are due and payable upon receipt and are considered delinquent if not paid by the due date noted on the bill. There will be a ten (10) percent late payment charge added to all accounts that are not paid by the due date. Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and Delinquent Notices.) Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate or changing from summer to winter or from winter to summer rates. 2. Service will be furnished under the Elk River Municipal Utilities’ rules. 3. Extensions made for service under this schedule are subject to the provisions of Elk River Municipal Utilities’ rules governing Extension of Service and Facilities. 4. The rate set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission, distribution, production, or the sale of electrical power. 5. Exceptions by management approval only. Installation of Demand Meter: At the option of Elk River Municipal Utilities, a demand meter may be installed on any customer whose: monthly usage exceeds 15,000 kWh.

Adopted December 11, 2018 Revised January 8, 2019 Effective January 1, 2019

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DEMAND ALL ELECTRIC SERVICE RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable: Available for non-residential customer accounts. Existing or new Customer accounts with actual or projected demand greater than or equal to 50 kW. A Customer account with a billing demand of less than 50 kW for 12 consecutive months will be given the option of switching to the Non-Demand rate. The Customer accounts shall be in compliance with all policies, procedures, and safety requirements, and shall be taken through one meter. (Not applicable to resale, standby or auxiliary service.) Character Of Service: AC, 60 cycles, 120 volts or 120/240 volts, single-phase; 120/208 volts, or 277/480 volts, three-phase. Four wire, 240 volts three-phase will only be applicable to existing customers now being served by this voltage. A customer requiring voltages other than that already established shall be required to provide suitable space and location for Elk River Municipal Utilities transformers, metering and associated equipment. Special Conditions: One meter shall be installed to service one class of business. If additional buildings are required for a given business, they shall be interconnected by the customer to obtain one meter, unless an exception is approved by management. If additional meters and services are requested by the customer, each shall be treated as a separate customer and billed individually. Meter to be accessible to our service department at any time. Demand Service Rate: Basic Monthly Electric Charge: $75.00 per month.

Demand Charge: Energy Charge:

Summer

Winter

$15.50 $0.0651

$11.50 in kW / month $0.0651 in kWh / month

Summer Rate: Applicable during the five monthly billing periods of June – October. Summer rates are subject to sales tax unless an exemption is filed. Winter Rate: Applicable during the seven monthly billing periods of November – May. Winter rates are sales tax exempt and may require an exemption to be filed. Rates are subject to application of Power Cost Adjustment (PCA). Minimum Bill: Maximum billing demand during previous twelve months times 3.0% of the demand

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Demand All Electric Service Rate charge, or the actual demand multiplied by the demand charge, whichever is greater plus $1.00 per kVA per month of excess transformer capacity requested by customer. Determination of Billing Demand: The billing demand shall be the highest measured demand (corrected for power factor if required) during any fifteen (15) minute period occurring in the current billing period. But in no month shall the billing demand be greater than the value in kW determined by dividing the kWh sales for the billing month by 75 hours per month. This billing adjustment applies only if the customer’s peak demand DOES NOT occur between the hours of 3:00 p.m. and 10:00 p.m. Fluctuating Loads: Customers operating equipment having a highly fluctuating or large instantaneous demand, such as welders and X-ray machines, shall be required to pay all non-betterment costs of isolating the load from the balance of Elk River Municipal Utilities’ system so that the load will not unduly interfere with service on Elk River Municipal Utilities’ lines. In addition, Customers who fail to provide adequate corrective equipment shall be required to own and maintain their own transformers. No motor larger than ten (10) HP (or 7.355 kW) will be allowed to be across-the-line started without notification and written authorization from Elk River Municipal Utilities. Power Factor Adjustment: For loads of 50 kW or more, or at the option of Elk River Municipal Utilities for loads of less than 50 kW, power factor adjustments may be made in the billing demand, when the power factor, as determined by test, at the time of the Customer’s maximum use is less than 95%. If the power factor, as measured by Elk River Municipal Utilities’ electric department, is lower than 95%, the monthly demand charge may be multiplied by the ratio 95% divided by the measured power factor, or at Elk River Municipal Utilities option, the power factor may be corrected at the Customer’s expense. Terms of Payment: Bills are due and payable upon receipt and are considered delinquent if not paid by the due date noted the bill. There will be a ten (10) percent late payment charge added to all accounts that are not paid by the due date. Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and Delinquent Notices.) Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate. 2. Service will be furnished under Elk River Municipal Utilities rules. 3. Extensions made for service under this schedule are subject to the provisions of Elk River Municipal Utilities’ rules governing Extension of Service and Facilities. 4. The rates set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission, distribution, production, or the sale of electrical power. 5. Exceptions by management approval only.

Adopted December 11, 2018 Revised January 9, 2019 Effective January 1, 2019

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DEMAND ELECTRIC SERVICE RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable: Available for non-residential customer accounts. Existing or new Customer accounts with actual or projected demand greater than or equal to 50 kW. A Customer account with a billing demand of less than 50 kW for 12 consecutive months will be given the option of switching to the Non-Demand rate. The Customer accounts shall be in compliance with all policies, procedures, and safety requirements, and shall be taken through one meter. (Not applicable to resale, standby or auxiliary service.) Character Of Service: AC, 60 cycles, 120 volts or 120/240 volts, single-phase; 120/208 volts, or 277/480 volts, three-phase. Four wire, 240 volts three-phase will only be applicable to existing customers now being served by this voltage. A customer requiring voltages other than that already established shall be required to provide suitable space and location for Elk River Municipal Utilities transformers, metering and associated equipment. Special Conditions: One meter shall be installed to service one class of business. If additional buildings are required for a given business, they shall be interconnected by the customer to obtain one meter, unless an exception is approved by management. If additional meters and services are requested by the customer, each shall be treated as a separate customer and billed individually. Meter to be accessible to our service department at any time. Demand Service Rate: Basic Monthly Electric Charge: $75.00 per month.

Demand Charge: Energy Charge:

Summer

Winter

$15.50 $0.0651

$11.50 in kW / month $0.0651 in kWh / month

Summer Rate: Applicable during the five monthly billing periods of June – October. Winter Rate: Applicable during the seven monthly billing periods of November – May. Rates are subject to application of Power Cost Adjustment (PCA). Sales tax applicable unless exemption is filed.

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50

Demand Electric Service Rate Minimum Bill: Maximum billing demand during previous twelve months times 3.0% of the demand charge, or the actual demand multiplied by the demand charge, whichever is greater plus $1.00 per kVA per month of excess transformer capacity requested by customer. Determination of Billing Demand: The billing demand shall be the highest measured demand (corrected for power factor if required) during any fifteen (15) minute period occurring in the current billing period. But in no month shall the billing demand be greater than the value in kW determined by dividing the kWh sales for the billing month by 75 hours per month. This billing adjustment applies only if the customer’s peak demand DOES NOT occur between the hours of 3:00 p.m. and 10:00 p.m. Fluctuating Loads: Customers operating equipment having a highly fluctuating or large instantaneous demand, such as welders and X-ray machines, shall be required to pay all non-betterment costs of isolating the load from the balance of Elk River Municipal Utilities’ system so that the load will not unduly interfere with service on Elk River Municipal Utilities’ lines. In addition, Customers who fail to provide adequate corrective equipment shall be required to own and maintain their own transformers. No motor larger than ten (10) HP (or 7.355 kW) will be allowed to be across-the-line started without notification and written authorization from Elk River Municipal Utilities. Power Factor Adjustment: For loads of 50 kW or more, or at the option of Elk River Municipal Utilities for loads of less than 50 kW, power factor adjustments may be made in the billing demand, when the power factor, as determined by test, at the time of the Customer’s maximum use is less than 95%. If the power factor, as measured by Elk River Municipal Utilities’ electric department, is lower than 95%, the monthly demand charge may be multiplied by the ratio 95% divided by the measured power factor, or at Elk River Municipal Utilities option, the power factor may be corrected at the Customer’s expense. Terms of Payment: Bills are due and payable upon receipt and are considered delinquent if not paid by the due date noted the bill. There will be a ten (10) percent late payment charge added to all accounts that are not paid by the due date. Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and Delinquent Notices.) Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate. 2. Service will be furnished under Elk River Municipal Utilities rules. 3. Extensions made for service under this schedule are subject to the provisions of Elk River Municipal Utilities’ rules governing Extension of Service and Facilities. 4. The rates set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission, distribution, production, or the sale of electrical power. 5. Exceptions by management approval only. Adopted December 11, 2018 Revised, January 8, 2019 Effective January 1, 2019

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OFF-PEAK DEMAND ELECTRIC SERVICE RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable: Available for non-residential customer accounts. Existing or new Customer accounts with actual or projected demand greater than or equal to 50 kW. A Customer account with a billing demand of less than 50 kW for 12 consecutive months will be given the option of switching to the Non-Demand rate. The Customer accounts shall be in compliance with all policies, procedures, and safety requirements, and shall be taken through one meter. (Not applicable to resale, standby or auxiliary service.) Character Of Service: AC, 60 cycles, 120 volts or 120/240 volts, single-phase; 120/208 volts, or 277/480 volts, three-phase. Four wire, 240 volts three-phase will only be applicable to existing customers now being served by this voltage. A customer requiring voltages other than that already established shall be required to provide suitable space location of Elk River Municipal Utilities transformers, metering and associated equipment. Special Conditions: One meter shall be installed to service one class of business. If additional buildings are required for a given business, they shall be interconnected by the customer to obtain one meter, unless an exception is approved by management. If additional meters and services are requested by the customer, each shall be treated as a separate customer. Meter to be accessible to our service department at any time. Off Peak Demand Service Rate: Basic Monthly Electric Charge: $75.00 per month. Summer

Winter

Demand Charge: On-Peak Off-Peak Energy Charge:

$15.50 $6.25 $0.0680

$11.50 in kW / month $6.25 in kW / month $0.0680 in kWh / month

On-Peak Demand: On-Peak Period: Off-Peak Demand: Off-Peak Period:

Actual demand during On-Peak Periods 3:00 PM -10:00 PM weekdays Actual demand during Off-Peak Periods less On-Peak Demand All non On-Peak Periods

Summer Rate: Applicable during the five monthly billing periods of June – October. Winter Rate: Applicable during the seven monthly billing periods of November – May. Page 1 of 3

52

Off-Peak Demand Electric Service Rate Rates are subject to application of Power Cost Adjustment (PCA). Sales tax applicable unless exemption is filed. Minimum Bill: Maximum billing demand during previous twelve months times 3.0% of the demand charge, or the actual demand multiplied by the demand charge, whichever is greater plus $1.00 per kVA per month of excess transformer capacity requested by customer. Determination of Billing Demand: The billing demand shall be the highest measured demand (corrected for power factor if required) during any fifteen (15) minute period occurring in the current billing period. But in no month shall the billing demand be greater than the valve in kW determined by dividing the kWh sales for the billing month by 75 hours per month. This billing adjustment applies only if the customer’s peak demand DOES NOT occur between the hours of 3:00 p.m. and 10:00 p.m. Fluctuating Loads: Customers operating equipment having a highly fluctuating or large instantaneous demand, such as welders and X-ray machines, shall be required to pay all non-betterment costs of isolating the load from the balance of Elk River Municipal Utilities’ system so that the load will not unduly interfere with service on Elk River Municipal Utilities’ lines. No motor larger than ten (10) HP (or 7.355 kW) will be allowed to be across-the-line started without notification and written authorization from Elk River Municipal Utilities. In addition, Customers who fail to provide adequate corrective equipment shall be required to own and maintain their own transformers. Power Factor Adjustment: For loads of 50 kW or more, or at the option of Elk River Municipal Utilities for loads of less than 50 kW, power factor adjustments will be made in the billing demand, when the power factor, as determined by test, at the time of the Customer’s maximum use is less than 95%. If the power factor, as measured by Elk River Municipal Utilities’ electric department, is lower than 95%, the monthly demand charge may be multiplied by the ratio 95% divided by the measured power factor, or at Elk River Municipal Utilities’ option, the power factor may be corrected at the Customer’s expense. Terms of Payment: Bills are due and payable upon receipt and delinquent if not paid by the due date noted the bill. There will be a ten (10) percent late payment charge added to all accounts that are not paid by the due date. Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and Delinquent Notices.) Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate. 2. Service will be furnished under Elk River Municipal Utilities rules. 3. Extensions made for service under this schedule are subject to the provisions of Elk River Municipal Utilities’ rules governing Extension of Service and Facilities. 4. The rates set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission, distribution, production, or the sale of electrical power. Page 2 of 3

53

Off-Peak Demand Electric Service Rate

5. Exceptions by management approval only. Adopted December 11, 2018 Revised January 8, 2019 Effective January 1, 2019

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COMMERCIAL ALL ELECTRIC WITH GROUND SOURCE HEAT PUMP SERVICE RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable: To commercial customers having a single meter that includes a ground source heat pump (GSHP) in excess of 50 kW but no more than 150 kW in aggregated name plate capacity of the GSHP equipment (condensers and pumps). Character of Service: AC, 60 cycles, 120/240 volts, three wire, and three-phase. Special Conditions: This Program is available to commercial customers. A GSHP will be the only central heating and/or cooling system for the commercial work spaces. Commercial structures that are classified as Utility and Miscellaneous Group U by the International Code Council are not eligible for this rate. GSHPs that qualify for this program will not be interrupted. A GSHP paired with another heating source such as natural gas, fuel oil, or propane may qualify for the Dual Fuel Program. To qualify for the special rate, the customer shall provide: 1. The GSHP is the only heat source. Only closed loop GSHPs are eligible for this rate beginning September 1, 2016. 2. ERMU and the customer will agree on a meter location prior to the meter socket installation. 3. Commercial customers may have a separate meter to determine the energy and demand of the GSHP. Electric usage for the non-heating/cooling energy use of the building may be metered and priced using the appropriate rate (demand, or non-demand) schedule. 4. Accommodations for a meter and associated wiring installed according to the applicable electrical codes and will be installed by a qualified electrician. 5. Inspection by a State certified inspector and representative of ERMU. 6. Customers on this rate will not be eligible for the Cycled Air Conditioning or Dual Fuel Programs. Meter to be accessible to our service department at any time. Ground Source Heat Pump Service Rate: Basic Monthly Electric Charge: $30.00 per month Summer

Winter

$.0909 / kWh

$.0909 / kWh

Summer Rate: Applicable during the five monthly billing periods of June – October. Summer rates are subject to sales tax. Winter Rate: Applicable during the seven monthly billing periods of November – May. Winter rates are sales tax exempt. Page 1 of 2

55

Commercial All Electric with Ground Source Heat Pump Service Rate

Rates are subject to application of Power Cost Adjustment (PCA). Minimum Bill: Basic Monthly Electric Charge. Terms of Payment: Bills are due and payable upon receipt and are considered delinquent if not paid by the due date noted on the bill. There will be a ten (10) percent late payment charge added to all accounts that are not paid by the due date. Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and Delinquent Notices.) Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate, or changing from summer to winter or from winter to summer rates. 2. Service will be furnished pursuant to Elk River Municipal Utilities’ rules. 3. Extensions made for service under this schedule are subject to the provisions of Elk River Municipal Utilities’ rules governing Extension of Service and Facilities. 4. The rates set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission, distribution, production, or the sale of electrical power. 5. Exceptions by management approval only.

Adopted December 11, 2018 Revised January 8, 2019 Effective January 1, 2019

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GROUND SOURCE HEAT PUMP PROGRAM RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable: To single family residences, non-demand and demand customers receiving service under another rate, who add a second meter for any of the following controlled loads: Ground Source Heat Pump Rate: This Program is available to residential and commercial customers. A ground source heat pump (GSHP) is a central heating and/or cooling system for residential living spaces or commercial work spaces. Residential living spaces will meet all the applicable Minnesota state building codes. Commercial structures that are classified as Utility and Miscellaneous Group U by the International Code Council are not eligible for this rate. This program is available to residential or commercial customers with a GSHP as their sole heat source. GSHPs that qualify for this program will not be interrupted. A GSHP paired with another heating source such as natural gas, fuel oil, or propane may qualify for the Dual Fuel program. To qualify for the special rate, the customer shall provide: 1. The GSHP is the only heat source. Only closed loop GSHPs are eligible for this rate beginning January 1, 2016. 2. ERMU and the customer will agree on a meter location prior to the meter socket installation. 3. Commercial customers may have a separate meter to determine the load of the heat pumps. Electric usage for the remainder of the building will be metered and priced using the appropriate rate (Demand or Non-Demand). 4. Accommodations for a meter and associated wiring installed according to the applicable electrical codes and will be installed by a qualified electrician. 5. Inspection by a State certified electrical inspector and a representative of ERMU. 6. Customers on this rate will not be eligible for the Cycle Air Conditioning Rate Program. Elk River Municipal Utilities shall provide: 1. 2. 3. 4.

All electric energy consumed by the primary electric heating system at $.0909 per kWh. The rate is subject to the application of the Power Cost Adjustment (PCA). A meter socket to accommodate the meter in a mutually agreed to location. A meter to measure electricity consumed by the electric heating system.

Adopted December 11, 2018 Revised January 8, 2019 Effective January 1, 2019 Page 1 of 1

57

Formatted: Indent: Left: 0.5", No bullets or numbering

ELECTRIC VEHICLE CHARGING RATES Residential and Commercial Electric Vehicle Charging Rate Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable: To single family residences, non-demand and demand customers receiving service under another rate. Electric Vehicle Charging Rate: This Program is available to all customers of Elk River Municipal Utilities (ERMU) that own an electrically powered vehicle used for on road transportation. Charging of the vehicle can occur any time but will be subject to on-peak and off-peak energy charges per hour daily. Off peak hours typically occur between 10 PM and 10 AM and all other hours are considered on-peak. On-peak hours are Monday through Friday between 10 AM and 10 PM. Off-peak hours are Monday through Friday between 10 PM and 10 AM, Saturdays, Sundays, and the following holidays ( New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day). To qualify for the special rate, the customer shall provide: 1. Electric vehicle charging station that is used for the sole purpose of charging electric vehicles. This charging station must be 240 volt. 2. Customer is responsible for installation of the additional meter socket in a mutually agreed upon location. 3. Inspection by a State Certified electrical inspector of all metering equipment and provide an affidavit to ERMU when completed. Elk River Municipal Utilities shall provide: 1. All on-peak electric energy consumed by the electric vehicle charging equipment will be at the summer rate of $0.1270/kWh for the five monthly billing periods of June – October, and the winter rate of $0.1160/kWh for the seven monthly billing periods of November – May. 2. All off-peak electric energy consumed by electric vehicle charging equipment will be at the rate of $.0602/kWh. 3. The rate is subject to application of the Power Cost Adjustment (PCA). 4. This equipment will be available for charging at applicable rates 24 hours per day and is not subject to any load control strategies. 5. Electric meter. 6. Final inspection prior to meter activation to ensure only qualified loads are being supplied through the electric vehicle charging equipment. Public Electric Vehicle Charging Rate: This rate is available to anyone charging an electric vehicle or plugin electric vehicle at a public electric vehicle charging station owned and operated by ERMU within the ERMU service territory. All persons must have an active ChargePoint account or have the capability Page 1 of 2

58

Electric Vehicle Charging Rates to create a ChargePoint account prior to utilizing the charging equipment for an electric vehicle or plugin hybrid electric vehicle. To charge at the public charging stations customers shall: 1.

Utilize their existing ChargePoint account or create a new account using a credit or debit card prior to charging the electric vehicle or plug-in hybrid.

Elk River Municipal Utilities shall provide: 1. Access to public electric vehicle charging stations located in the ERMU service territory. 2. The chargers will be either level two (240 volt) or DC Fast Charging (480 volt) charging equipment. 3. Electric energy consumed at the level two charging stations will be at a rate of $0.1500 per kWh at all times. 4. Electric energy consumed at the DC Fast Charging station will be at a rate of $0.2000 per kWh at all times.

Adopted December 11, 2018 Revised January 8, 2019 Effective January 1, 2019

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STREET/SECURITY LIGHT SERVICE RATE Available: To any customer meeting Elk River Municipal Utilities criteria for service under this schedule, and whose lighting needs are not being furnished under any other schedule. Installation costs will be determined by Elk River Municipal Utilities per the Utilities Fee Schedule or on a time and materials basis. Applicable: As determined by Elk River Municipal Utilities, but generally to non-metered roadway and area lighting. Character Of Service: 120/240 volts, AC, as available. Street/Security Light Service Type Low Output (<249 Watt HPS, <74 Watt LED) Medium Output (250-399 Watt HPS, 75-124 Watt LED) High Output (400 Watt or larger HPS, 125 Watt or larger LED)

Monthly Rate Per Fixture $9.00 $15.00 $21.00

Rates are subject to sales tax. Ownership of Equipment: Elk River Municipal Utilities will install, own, and operate the lights, including fixtures and control equipment, unless otherwise agreed upon by Elk River Municipal Utilities and the Customer. Lamp Replacements: Lamp replacements will be made by Elk River Municipal Utilities when and as requested by the Customer. Terms of Payment: Bills are due and payable upon receipt and are considered delinquent if not paid by the due date noted on the bill. There will be a ten (10) percent late payment charge added to all accounts that are not paid by the due date. Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and Delinquent Notices.) General Terms and Conditions Applicable To Non-Metered Lighting Service: 1. Area lighting installed on Elk River Municipal Utilities poles shall not be of the type that interferes with climbing room, work space, or wire clearance as defined by the National Electrical Safety Code and is to be installed below the secondary line and service drops, all per Elk River Municipal Utilities’ specification.

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Street/Security Light Service Rate 2. All area lights installed under this schedule shall be equipped with a photo-electric control which will limit the hours of illumination from dusk to dawn (approximately 4,400 hours per year). 3. The rates set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission, distribution, production, or the sale of electrical power. 4. Exceptions by management approval only.

Adopted December 11, 2018 Revised January 8, 2019 Effective January 1, 2019

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WATER SERVICE RATES Available: To all customers who have municipal water service available at their property, lying within the corporate limits of the City of Elk River. Special Conditions: Each customer served by one meter. Multiple living entities, such as apartments, may be served by a combined meter upon approval of the Elk River Municipal Utilities and acceptance of applicable charges. Special Charges: A basic monthly water charge shall be applied to each meter based on the meter size according to the schedule below, and is separate from any water use. Included in the basic monthly water charge is $0.53 that is collected on a monthly basis from each service connection (excluding irrigation only accounts) to recover the total annual cost of $6.36 for the State of Minnesota Safe Water Testing Program (Minnesota Statutes 144.3831). Water Rates:

METER TYPE

Residential Commercial ¾ Commercial 1 Commercial 1 ¼ Commercial 1 ½ Commercial 2 Commercial 3 Commercial 4 Commercial 6 Commercial 8 Commercial Irrigation Seasonally or Permanently Installed

BASIC MONTHLY CHARGE

1st TIER Cost per 1000 gallons

2nd TIER Cost per 1000 gallons

3rd TIER Cost per 1000 gallons

$9.22 $11.06 $12.30 $13.54 $14.76 $19.68 $43.03 $59.02 $86.07 $116.81

$1.85 $1.85 $1.85 $1.85 $1.85 $1.85 $1.85 $1.85 $1.85 $1.85

$3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50

$4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00

$3.50

$4.00

$19.68

Residential water- exempt from sales tax. Commercial water- subject to sales tax unless exemption is filed.

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Water Service Rates Residential Rate Tier Definition: First Tier Rate = 0 – 9,000 gallons per month. Second Tier Rate = Between 9,000 and 15,000 gallons per month. Third Tier Rate = Above 15,000 gallons per month. Commercial Rate Tier Definition: First Tier Rate = 0 – 1.1 X previous year’s winter measurement period average monthly consumption. Second Tier Rate = Between 1.1 X previous year’s winter measurement period average monthly consumption to 1.1 X previous year’s winter measurement period average monthly consumption + 40,000 gallons. Third Tier Rate = Above 1.1 X previous year’s winter measurement period average monthly consumption + 40,000 gallons. Winter Measurement Period Definition: December – April billing cycles. For new customers, if a minimum of 3 winter months previous year’s history is not available to establish the Tier amount, the First Tier rate shall be utilized until a minimum of 3 months history is established. Commercial irrigation is not eligible for First Tier Rate as there is no winter use. Minimum Bill: Basic monthly water charge plus any charges applicable to multiple living entities. Terms of Payment: Bills are due and payable upon receipt and delinquent if not paid by the due date note on the bill. There will be a ten (10) percent late payment charge added to all accounts that are not paid by the due date. Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and Delinquent Notices.)

Adopted December 11, 2018 Revised January 8, 2019 Effective January 1, 2019

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ERMU Policy - A.1 - Service Policies - Sections 2.0 and 3.0

2) All applications for utility service made after the approved date of this policy, must be made by telephone, in writing, electronically, or in person and the following information is required: a) Date service is required. b) Name of person(s) responsible for service. c) Social Security numbers and Date of Birth for all persons responsible for service, or guarantor form signed. d) Telephone numbers(s). e) Mailing address, if different than service address. f) Deposit, if necessary per Deposit Policy. g) Service Agreement. 3) All of the customer’s previously incurred obligations or delinquent bills to ERMU must be paid in full before new service will be provided. 4) Any business serviced by ERMU that has not applied for service as required by this policy, and complied with the requirements contained herein, shall be considered an unauthorized user of ERMU services and subject to immediate disconnect without notice. 5) A new application for service and service agreement will be required any time a commercial property changes ownership, changes tenants, or a new or different person or business entity is requesting service to the property. 6) Identification suitable to ERMU may be required for any application for service. 7) Unoccupied commercial rental properties and commercial properties without a current ERMU account shall be billed in the name of the owner and the owner shall be liable for payment of charges. 2.0

Billing Due Dates A) ERMU has four billing cycles. Each cycle is billed one time per month. Bills are due on the due date specified on the bill, which will be approximately 20 days after the bill is generated. B) Bills are payable at the offices of ERMU located at 13069 Orono Parkway in Elk River during regular business hours, by mail, online, or in provided drop boxes 24 hours per day. Drop boxes are provided outside the ERMU office and beside the post office boxes located off Freeport Street, north of the post office. Drop box locations may be changed from time to time. Automatic payment plans are available with Bank Pay.

3.0

Penalties and Delinquent Notices A) Bills are considered late the next business day following the due date. A penalty of 10% of the original bill amount is added to the account. A Reminder Notice/Notice of Delinquency is generated the same day penalties are assessed. A grace period of up to 6 days may apply. B) Any check given in payment for services that is returned by the bank marked NSF (Non-Sufficient Funds), will be subject to a NSF fee per the ERMU fee schedule. The NSF fee will be added to the account. C) Customers will be subject to additional deposit requirements after having late payments.

64

UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Troy Adams, P.E. – General Manager MEETING DATE: AGENDA ITEM NUMBER: 4.1 January 8, 2019 SUBJECT: Annual Review of Committee Charters ACTION REQUESTED: No action required. BACKGROUND: In August 2017, the commission adopted a comprehensive manual of governance policies based on the Carver Model of governance. Included in those governance policies is Governance Policy G.2g Commission Committees which is attached for reference. This policy notes in statement #5 that “The Commission will review the committee charter and performance of any standing committee at least annually to determine if changes are required or if the committee is still required.” DISCUSSION: The annual review of the committee charters is an opportunity for the commission to review the purpose for the committees and whether or not they are still needed. This also is an opportunity for the commission to give direction to the committees. The schedule of this annual review is intentionally prior to March when the commission appoint committee members. The commission currently has two commission created committees: the Wage & Benefits Committee and the Financial Reserves & Investment Committee. These two committee charters are attached for review and discussion. ATTACHMENT:  Governance Policy G.2g Commission Committees  Governance Policy - G.2g1 - Wage & Benefits Committee Charter  Governance Policy - G.2g2 - Financial Reserves & Investment Committee Charter

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COMMISSION POLICY Section: Governance

Category: Governance Policies

Policy Reference:

Policy Title:

G.2g

Commission Committees

PURPOSE: With this policy, the Commission establishes and communicates its purposes and the means by which it creates and empowers committees to assist the Commission in its work. This policy applies to any group formed by Commission action, whether or not it is called a committee and whether or not the group includes Commission members. It does not apply to committees formed under the authority of the General Manager. POLICY: Commission committees, when created, will be used to reinforce the wholeness of the Commission and never to interfere with the delegation of authority from the Commission to the General Manager or to any officer of the Commission. Commission committees will not have direct involvement with current management and staff employee functions. Consistent with this general statement: 1. The Commission will use committees sparingly and only for as long as required to accomplish its purposes. Committees may be appropriate in circumstances where the Commission recognizes the need for more in-depth review of information and issues, and where a committee is the best way to make effective and efficient use of available Commission member expertise and time. Committees may also be appropriate where it is necessary or desirable for the Commission to visibly demonstrate regulatory compliance or accountability to its stakeholders (e.g. Financial Reserves and Investments Committee). 2. Committees ordinarily will assist the Commission in the following specific ways by: a. Monitoring organization performance metrics and related information; b. Preparing policy alternatives and their implications for Commission deliberation and action; ______________________________________________________________________________ Page 1 of 2 66

ERMU Commission Policy – G.2g Commission Committees ______________________________________________________________________________

c. Determining the level of compliance with existing Commission policies and evaluating the results of policy compliance or non-compliance. 3. When the Commission creates a committee, it will develop and approve by resolution a written committee charter that sets forth the purposes, duration, expected outcomes, leadership, membership, delegated authority, available resources, and other information needed for the committee to function successfully. The General Manager will designate management/staff committee members if so requested. The Commission, by majority vote, will appoint Commission members to committees and remove or replace them, as appropriate. The Commission, by majority vote, will also appoint, remove, and replace a Committee Chair, Vice-Chair and any other positions of leadership that the Commission determines appropriate. 4. The Commission recognizes that appointments to a Committee provide opportunities for learning and Governance development. Accordingly, the Commission endeavors to appoint Commission members to committee leadership positions who do not already hold a Commission office. 5. The Commission will review the committee charter and performance of any standing committee at least annually to determine if changes are required or if the committee is still required. 6. Commission committees may not convene a meeting that includes a quorum of the Commission. 7. Commission committees may not speak or act for the Commission except when formally given such authority for specific and time-limited purposes. Expectations and authorities will be carefully stated in order not to conflict with authority delegated to the General Manager or Commission Chair. 8. Commission committees may not exercise authority over management and staff employees. The General Manager is accountable to the whole Commission and is not required to obtain approval of any Commission committee before taking an executive action. 9. Commission committees will avoid relating to or identifying with discrete parts of the organization rather than the whole. A Commission committee that has helped the Commission create policy on a particular subject will not be used to monitor organizational performance on that same subject, except with specific Commission approval. POLICY HISTORY: Adopted

May 9, 2017

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COMMISSION POLICY Section: Governance

Category: Governance Policies

Policy Reference:

Policy Title:

G.2g1

Wage & Benefits Committee Charter

PURPOSE: The Wage and Benefits Committee exists to help the Commission develop and maintain a pay plan structure and benefits package that are market competitive, help promote employee retention, and to help the Commission make informed decisions which provide value to the customers through fair labor expenses. This Committee also exists to help the Commission with succession planning and review pay equity compliance. MEMBERSHIP: The Committee shall be comprised of two Commissioners, the General Manager, an administrative manager, and a field service superintendent. At no time shall there be a quorum of the Commission on the Committee. The Commission shall appoint Committee members annually following the Commission election of officers during the March Regular Commission meeting. The Commission shall also appoint the Committee Chair at that time. ROLE OF THE COMMITTEE CHAIR: The primary role of the Committee Chair is to run the Committee meetings. The Committee will adhere to the Current edition of Robert’s Rules of Order Newly Revised for all situations to which they are applicable and are not inconsistent with ERMU’s bylaws, policies, and any special rules of order that the Commission may adopt. The Committee meetings may be open or closed to employees at the discretion of the Committee Chair. AUTHORITY: Except as established in this Committee Charter, the authority of the Committee is limited to the purpose of research and recommendation to the Commission. The Committee, at the discretion and through formal action of the Commission, may be empowered beyond the role of research ______________________________________________________________________________ Page 1 of 2 68

ERMU Commission Policy – G.2g1 Wage & Benefits Committee Charter ______________________________________________________________________________ and recommendation such that it is consistent with the Organizational Core Purpose policies and the Commission Committees policy. SPECIFIC DUTIES: 1. At the request of the Commission, research and analyze topics related to employee compensation and benefits. 2. Annually perform market benchmarking and evaluate wages. The Committee shall present options and make recommendations regarding cost of living adjustments and pay plan structure modifications to the Commission for their consideration. 3. Review insurance policies and evaluate policy renewals related to employee benefit insurances. The Committee shall present options and make recommendations regarding these insurance policies to the Commission for their consideration. 4. Evaluate wage and benefit requests from employees. Present and make recommendations to the Commission as appropriate. 5. Review submittal information pertaining to pay equity compliance requirements and present options and make recommendations to the Commission as appropriate. 6. Record minutes of Committee meetings. Committee meeting minutes shall be subject to applicable data retention law and policies. SCHEDULE: At a minimum, the Committee shall meet on a quarterly basis. TERMINATION: The Committee shall exist until at such time formal action of the Commission is taken to dissolve the Committee. POLICY HISTORY: Adopted

May 9, 2017

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COMMISSION POLICY Section: Governance

Category: Governance Policies

Policy Reference:

Policy Title:

G.2g2

Financial Reserves & Investment Committee Charter

PURPOSE: The Financial Reserves & Investment Committee exists to help the Commission develop and maintain industry appropriate financial reserves and investment policies. MEMBERSHIP: The Committee shall be comprised of two Commissioners, the General Manager, and the Finance & Office Manager. At no time shall there be a quorum of the Commission on the Committee. The Commission shall appoint Committee members annually following the Commission election of officers during the March Regular Commission meeting. The Commission shall also appoint the Committee Chair at that time. ROLE OF THE COMMITTEE CHAIR: The primary role of the Committee Chair is to run the Committee meetings. The Committee will adhere to the Current edition of Robert’s Rules of Order Newly Revised for all situations to which they are applicable and are not inconsistent with ERMU’s bylaws, policies, and any special rules of order that the Commission may adopt. The Committee meetings may be open or closed to employees at the discretion of the Committee Chair. AUTHORITY: Except as established in this Committee Charter, the authority of the Committee is limited to the purpose of research and recommendation to the Commission. The Committee, at the discretion and through formal action of the Commission, may be empowered beyond the role of research and recommendation such that it is consistent with the Organizational Core Purpose policies and the Commission Committees policy. ______________________________________________________________________________ Page 1 of 2 70

ERMU Commission Policy – G.2g2 Financial Reserves & Investment Committee Charter ______________________________________________________________________________

SPECIFIC DUTIES: 1. At the request of the Commission, research and analyze topics related to financial reserves and investments. 2. On a periodic basis, the Committee will review the investment balances and the various investment instruments for return, liquidity, and diversification. The Committee may present options and make recommendations to the Commission for their consideration. 3. Annually, when the Commission designates the official depository for the year, it should provide for the Finance & Office Manager to recommend that additional depositories be designated for the purpose of investing funds. 4. On behalf of the Commission and Committee, new Investments will be authorized by the Finance & Office Manager, with the funds actually being transferred via a check produced by the A/P Specialist, and recorded in the check register detail presented at the regular Commission meetings. Investments that mature shall be reinvested by the Finance & Office Manager. All investing will be transacted working with the investment firm(s) or bank(s) for the best rate of return within the constraints of the ERMU Investment Policy. In the event that the Finance & Office Manager is unable to conduct the above investment responsibilities, the General Manager has the authority to act in his/her absence. 5. On a periodic basis, the Committee will review the Financial Reserves Policy and reserve balances. The Committee may present options and make recommendations regarding modification of the Financial Reserves Policy to the Commission for their consideration. SCHEDULE: At a minimum, the Committee shall meet on an annual basis. TERMINATION: The Committee shall exist until at such time formal action of the Commission is taken to dissolve the Committee. POLICY HISTORY: Adopted

May 9, 2017

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UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Troy Adams, P.E. – General Manager MEETING DATE: AGENDA ITEM NUMBER: January 8, 2019 4.2 SUBJECT: Compliance Monitoring Report – Employee Safety Manual ACTION REQUESTED: No action required. BACKGROUND: In August 2017, the commission adopted a comprehensive manual of governance policies based on the Carver Model of governance. Included in those governance policies is Governance Policy G.4f Employee Interests which is attached for reference. This policy notes in statement #2 that “the General Manager shall not operate without an Employee Safety Manual.” DISCUSSION: In compliance with Governance Policy G.4f Employee Interests statement #2, ERMU uses the American Public Power Association Safety Manual 16th Edition. This manual is issued to or made available to all employees. The employees sign a document of acknowledgement and receipt. This safety manual is an integral part of the ERMU safety program which includes additional safety policies, procedures, rules, programs, and required safety trainings. ATTACHMENT:  ERMU Governance Policy – G.4f – Employee Interests  Safety Manual Acknowledgment and Receipt Form

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COMMISSION POLICY Section: Governance

Category: Delegation to Management Policies

Policy Reference:

Policy Title:

G.4f

Employee Interests

PURPOSE: With this policy, the Commission sets forth its expectations for the General Manager concerning the employment, termination of employment, management, compensation and treatment of employees. POLICY: In all ERMU interactions with and among the employees of ERMU, the General Manager shall not intentionally allow situations, processes, actions, behaviors or attitudes that are unsafe, illegal, undignified, inattentive or unresponsive to employee needs or requests, or otherwise in conflict with the organizational values advocated by the Commission. (See Organizational Values Policy). Consistent with this general statement: 1. The General Manager shall not allow ERMU management or the Commission to be inadequately informed about, or fail to exercise reasonable judgment and discretion regarding appropriate and timely action on, any issue of material significance concerning employee safety and health, performance, satisfaction and morale, or employment policies and processes. 2. The General Manager shall not operate without an Employee Safety Manual. 3. The General Manager shall not operate without proactive management support for a safety culture that includes expected compliance with the Safety Manual, participation in ongoing safety training, consistent use of safe work practices and personal protective equipment, reporting of unsafe conditions and safety incidents/near misses, and accountabilities for safety at the organizational, work group, and individual level.

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ERMU Commission Policy – G.4f Employee Interests ______________________________________________________________________________ 4. The General Manager shall not operate without documented employment policies, processes, and practices that have been adopted by the Commission and communicated to employees in the form of an ERMU Employee Handbook. 5. The General Manager shall exercise reasonable judgment and discretion to avoid operating ERMU in material contravention of the Commission-approved employment policies, processes, and practices or any applicable employment law or regulation. 6. The General Manager shall adopt a reasonable process for notifying employees of material changes to the ERMU Employee Handbook and other applicable employee policies. 7. The General Manager shall adopt a reasonable process for conducting and documenting annual employee performance planning and evaluation in a manner consistent with the nature of each employee’s duties. 8. Within the financial limitations of the budget approved by the Commission, the General Manager shall provide employees with safe working conditions, adequate facilities and equipment, and other support needed to enable high levels of employee performance, job satisfaction, and career development. 9. The General Manager shall not use methods of collecting, reviewing, transmitting, or storing employee information that fail to protect the information against improper access and use, damage or loss, or unauthorized destruction. POLICY HISTORY: Adopted

August 8, 2017

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RECEIPT AND ACKNOWLEDGMENT  OF  SAFETY MANUAL 

By signing this receipt: I acknowledge that I have received or have access to the American Public Power  Association Safety Manual 16th Edition; and  That this safety manual shall supersede and replace all previously‐issued safety manuals; and  That this safety manual is an integral part of the Elk River Municipal Utilities safety program; and  That Elk River Municipal Utilities has additional safety policies, procedures, rules, programs, and  required safety trainings that are not included in this safety manual; and  That it is my responsibility to read, study, and abide by these safety rules and work procedures and  other employer policies and procedures as they apply to the duties that I shall perform for Elk River  Municipal Utilities; and  I further understand that failure to abide by these rules may result in discipline, up to and including  termination of my employment.  

Print or Type Employee Name 

Employee Signature 

Date 

75

UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Theresa Slominski – Finance & Office Manager MEETING DATE: AGENDA ITEM NUMBER: January 8, 2019 5.1 SUBJECT: Financial Report – November 2018 ACTION REQUESTED: Receive the November 2018 Financial Report DISCUSSION: Electric P&L November’s electric kWh sales are up from the prior year, 4%. For further breakdown:  Residential usage is up 6%  Small Commercial usage is down 3%  Large Commercial usage is up 5% Electric Operating Revenue for November was $2,863,304, on target with the prior year but 3% below budget. This revenue included PCAs of $166,248.94, which offsets against revenue, reducing the actual number. 2017 included the pro-forma adjustment to show the demand adjustment credit being funded through reserves. Without this adjustment in 2017, November revenue would be 1% ahead of prior year and 9% ahead of prior YTD. Other Revenue of $192,503 is ahead of the prior year by 18%, and 23% above prior YTD. Other Revenue is also 45% above YTD budget which is largely due to the Contribution from the City of Otsego for its street lights and interest on funds paid in advance for MMPA buy-in. Overall, Total Revenues of $3,055,808 are ahead of prior year by less than 1% and ahead of prior YTD by 9%. YTD Total Revenues are ahead of budget by 6%. Purchased Power of $1,950,511 is above the prior year by 9%, and above budget by 5%. YTD costs are more than prior year by 6%, and are above YTD budget by 3%. Administrative Expenses of $282,712 are more than prior year by 9% which is mainly driven by safety training usually occurring in December, but are on target with budget. YTD costs are more than prior year by 6% which is mainly driven by bond issuance services/fees, but are under budget by 9%. General Expenses of $14,349 are 83% under budget, and are 52% under budget YTD.

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For expenses, in total they are 10% more than the prior year, and 7% more than prior YTD, and are over budget YTD by 1%. For November 2018, the Electric Department has a Net Profit of $209,262 and YTD Net Profit of $3,093,302. This is slightly behind the budgeted monthly Net Profit of $271,562, and behind the prior year monthly Net Profit of $435,425, but is significantly ahead of prior YTD Net Profit of $2,358,413 and YTD Budget.

Water P&L November gallons of water sold up 1% from the prior year. For further breakdown:  Residential use down 2%  Commercial use up 3% Water Operating Revenue for November was $153,861, 4% ahead of prior year and ahead of YTD budget by 12% and ahead of prior YTD by 9%. Other Revenues of $69,393 are ahead of the prior year by 15%, but behind prior YTD by 10%. The main drivers causing the prior YTD variance are Contributions from Developers and Connection Fees. Other Revenues are ahead of YTD budget by 178%. Overall, Total Revenues of $223,255 are ahead of the prior year by 7%, and ahead of prior YTD by 3% with Water Sales being the driving force. YTD Total Revenues are ahead of budget by 36%. Expenses are less than the prior year by 2%, and are under YTD budget by 8%. For November 2018, the Water Department has a Net Loss of $4,191, which is ahead of last year’s Net Loss of $24,586. November YTD Net Profit is $829,998, which is slightly behind the prior YTD Net Profit of $831,922, but is significantly ahead of the budgeted YTD Net Loss of $269,530. ATTACHMENTS:  Balance Sheet 11.2018  Summary Electric Statement of Revenues, Expenses and Changes in Net Position 11.2018  Summary Water Statement of Revenues, Expenses and Changes in Net Position 11.2018  Graphs Prior Year and YTD 2018  Detailed Electric Statement of Revenues, Expenses and Changes in Net Position 11.2018  Detailed Water Statement of Revenues, Expenses and Changes in Net Position 11.2018

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ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA COMBINED BALANCE SHEET FOR PERIOD ENDING NOVEMBER 2018 ELECTRIC ASSETS CURRENT ASSETS CASH ACCOUNTS RECEIVABLE INVENTORIES PREPAID ITEMS CONSTRUCTION IN PROGRESS TOTAL CURRENT ASSETS

WATER

10,504,075 2,632,555 844,524 165,434 1,120,411 15,266,998

5,379,650 298,409 12,887 25,187 303,795 6,019,927

1,261,359 2,638,468 38,884 3,938,711

0 1,183,955 113,824 1,297,779

645,285 3,801,373 2,301,867 38,899,813 10,419,684 56,068,022 (27,582,616) 28,485,406

13,530,438 0 0 22,739,706 1,021,765 37,291,909 (17,517,969) 19,773,940

21,546,212 981,883 (110,205) 22,417,890

0 0 0 0

910,272

176,946

71,019,276

27,268,593

3,899,185 511,879 643,387 0 16,521 0 856 5,071,828

220,142 82,982 2,124 0 0 0 115,573 420,822

820,608 0 22,000,170 2,890,601

0 0 1,134,524 556,723

TOTAL LONG TERM LIABILITIES

25,711,379

1,691,247

TOTAL LIABILITIES

30,783,207

2,112,068

651,486

125,475

1,261,359 0 35,229,923 3,093,302 39,584,584

0 0 24,201,051 829,999 25,031,050

71,019,276

27,268,593

RESTRICTED ASSETS BOND RESERVE FUND EMERGENCY RESERVE FUND UNRESTRICTED RESERVE FUND TOTAL RESTRICTED ASSETS FIXED ASSETS PRODUCTION LFG PROJECT TRANSMISSION DISTRIBUTION GENERAL FIXED ASSETS (COST) LESS ACCUMULATED DEPRECIATION TOTAL FIXED ASSETS, NET INTANGIBLE ASSETS POWER AGENCY MEMBERSHIP BUY-IN LOSS OF REVENUE INTANGIBLE LESS ACCUMULATED AMORTIZATION TOTAL INTANGIBLE ASSETS, NET OTHER ASSETS AND DEFERRED OUTFLOWS TOTAL ASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES ACCOUNTS PAYABLE SALARIES AND BENEFITS PAYABLE DUE TO CITY DUE TO OTHER FUNDS NOTES PAYABLE-CURRENT PORTION BONDS PAYABLE-CURRENT PORTION UNEARNED REVENUE TOTAL CURRENT LIABILITIES LONG TERM LIABILITIES LFG PROJECT DUE TO COUNTY BONDS PAYABLE, LESS CURRENT PORTION PENSION LIABILITIES

DEFERRED INFLOWS OF RESOURCES FUND EQUITY CAPITAL ACCOUNT CONST COST CONTRIBUTED CAPITAL RETAINED EARNINGS NET INCOME (LOSS) (THROUGH PREVIOUS MONTH) TOTAL FUND EQUITY TOTAL LIABILITIES & FUND EQUITY

78

ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING NOVEMBER 2018

Electric Revenue Operating Revenue Elk River Otsego Rural Big Lake Dayton Public St & Hwy Lighting Generation and Sub Station Credit Dispersed Generation Credit Other Revenue/CIP/Rate Increase/AC Credit Total Operating Revenue Other Operating Revenue Interest/Dividend Income Customer Penalties LFG Project Connection Fees Misc Revenue Total Other Revenue Total Revenue Expenses Purchased Power Operating & Mtce Expense Landfill Gas Transmission Expense Distribution Expense Maintenance Expense Depreciation & Amortization Interest Expense Security Other Operating Expense Customer Accounts Expense Administrative Expense General Expense Total Expenses(before Operating Transfers) Operating Transfer Operating Transfer/Other Funds Utilities & Labor Donated Total Operating Transfer Net Income Profit(Loss)

2018 NOVEMBER

2018 YTD

2018 YTD BUDGET

2018 ANNUAL BUDGET

2018 YTD Bud Var%

2017 NOVEMBER

2017 YTD

YTD VARIANCE

2017 v. 2018 Actual Var%

2,612,680 201,476 14,069 16,385 18,692 0 0 0 2,863,304

32,133,171 2,561,989 176,003 208,504 201,507 3,600 (714,867) (19,140) 34,550,770

30,926,975 2,507,448 180,990 212,397 194,858 3,600 (655,851) (13,500) 33,356,919

33,451,191 2,696,680 197,800 231,456 213,409 3,600 (694,616) (13,500) 36,086,021

4 2 (3) (2) 3 0 9 42 4

2,624,528 192,463 14,289 15,762 17,760 400 (39,511) 39,552 2,865,245

29,512,609 2,392,776 172,713 202,683 185,946 4,400 (736,434) 382,617 32,117,313

2,620,562 169,213 3,289 5,820 15,560 (800) 21,566 (401,757) 2,433,456

9 7 2 3 8 (18) (3) (105) 8

8,814 16,366 93,069 37,775 36,478 192,503

314,302 186,295 1,043,067 264,003 693,979 2,501,647

73,333 227,982 1,034,804 146,894 241,013 1,724,028

80,000 250,000 1,128,878 150,000 261,180 1,870,058

329 (18) 1 80 188 45

5,881 22,247 98,201 9,655 27,476 163,461

71,358 225,160 997,039 216,835 516,655 2,027,049

242,943 (38,865) 46,027 47,167 177,323 474,597

340 (17) 5 22 34 23

3,055,808

37,052,417

35,080,948

37,956,080

6

3,028,706

34,144,362

2,908,054

9

1,950,511 19,976 57,500 1,406 13,827 80,505 231,841 55,882 0 1,788 24,572 282,712 14,349 2,734,874

24,655,178 207,304 637,589 18,249 256,032 1,191,357 2,064,253 324,902 0 55,980 279,098 2,780,818 183,004 32,653,771

23,825,284 261,677 694,595 34,092 350,333 1,179,345 1,996,075 304,304 0 14,096 320,239 3,061,777 383,749 32,425,571

25,964,551 285,959 757,740 37,192 384,294 1,283,319 2,183,821 351,103 0 114,471 349,148 3,333,718 468,482 35,513,799

3 (21) (8) (46) (27) 1 3 7 0 297 (13) (9) (52) 1

1,792,515 17,513 59,916 787 35,248 90,564 171,745 23,872 0 384 23,597 260,271 9,254 2,485,672

23,251,592 200,249 652,058 10,135 335,363 926,255 1,870,538 270,346 20 65,576 246,533 2,633,084 116,343 30,578,099

1,403,586 7,055 (14,468) 8,113 (79,330) 265,102 193,715 54,555 (20) (9,596) 32,565 147,733 66,660 2,075,671

6 4 (2) 80 (24) 29 10 20 (100) 15 13 6 57 7

92,285 19,386 111,671 209,262

1,107,412 197,931 1,305,343 3,093,302

1,074,022 207,354 1,281,377 1,373,999

1,165,000 232,006 1,397,006 1,045,274

3 (5) 2 125

90,406 17,201 107,608 435,425

1,023,595 184,253 1,207,849 2,358,413

83,816 13,677 97,494 734,888

8 7 8 31

79

ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING NOVEMBER 2018

Water Revenue Operating Revenue Water Sales Total Operating Revenue Other Operating Revenue Interest/Dividend Income Customer Penalties Connection Fees Misc Revenue Total Other Revenue Total Revenue Expenses Production Expense Pumping Expense Distribution Expense Depreciation & Amortization Interest Expense Other Operating Expense Customer Accounts Expense Administrative Expense General Expense Total Expenses(before Operating Transfers) Operating Transfer Utilities & Labor Donated Total Operating Transfer Net Income Profit(Loss)

2018 NOVEMBER

2018 YTD

2018 YTD BUDGET

2018 ANNUAL BUDGET

2018 YTD Bud Var%

2017 NOVEMBER

2017 YTD

YTD VARIANCE

2017 v. 2018 Actual Var%

153,861 153,861

2,322,881 2,322,881

2,082,989 2,082,989

2,200,002 2,200,002

12 12

147,391 147,391

2,123,688 2,123,688

199,192 199,192

9 9

2,203 (1,002) 48,203 19,989 69,393

22,963 16,917 727,127 224,323 991,331

18,333 13,998 115,133 208,524 355,989

20,000 15,000 125,600 227,612 388,212

25 21 532 8 178

1,470 2,155 37,611 19,282 60,519

29,696 18,181 786,163 263,391 1,097,433

(6,733) (1,264) (59,035) (39,068) (106,101)

(23) (7) (8) (15) (10)

223,255

3,314,212

2,438,978

2,588,215

36

207,911

3,221,122

93,090

3

2,757 38,898 20,016 95,844 3,429 72 4,742 61,277 410 227,447

50,385 439,056 216,978 1,097,751 38,435 3,164 58,896 570,946 8,599 2,484,214

47,100 535,785 232,369 1,124,624 38,435 2,264 60,546 654,652 12,272 2,708,050

50,000 599,548 263,185 1,228,866 41,864 7,267 66,051 711,790 13,388 2,981,960

7 (18) (7) (2) 0 40 (3) (13) (30) (8)

1,065 32,613 13,050 114,215 4,142 49 5,515 61,278 567 232,497

40,607 411,933 146,752 1,090,291 46,211 7,746 57,012 579,084 9,559 2,389,199

9,778 27,122 70,225 7,460 (7,776) (4,581) 1,883 (8,137) (960) 95,014

24 7 48 1 (17) (59) 3 (1) (10) 4

0 0 (4,191)

0 0 829,998

458 458 (269,530)

500 500 (394,245)

(100) (100) 408

0 0 (24,586)

0 0 831,922

0 0 (1,923)

0 0 0

80

Elk River Municipal Utilities Monthly Electrical Demand 70.0 65.0

Demand in MW

60.0 55.0 50.0 45.0 40.0 35.0 30.0

Month

2017

2018

Elk River Municipal Utilities Monthly Energy Purchases 34,000

Energy Purchases in MWH

29,000

24,000

19,000

14,000

Month

2017

81

2018

Elk River Municipal Utilities Monthly Total Electric Load 40,000

Electric Load in MWH

35,000

30,000

25,000

20,000

15,000

10,000

Month

2017

2018

Elk River Municipal Utilities Monthly Electric Sales $4,500,000 $4,000,000

Sales in Dollars

$3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000

Month

2017

82

2018

Elk River Municipal Utilities Monthly Residential, Commercial & Industrial Loads 25,000

Loads in MWH

20,000

15,000

10,000

5,000

-

Month 2017 Residential

2018 Residential

2017 Commercial

2018 Commercial

2017 Industrial

2018 Industrial

Elk River Municipal Utilities Monthly Residential, Commercial & Industrial Sales $2,500,000

Sales in Dollars

$2,000,000

$1,500,000

$1,000,000

$500,000

$0

2017 Residential

Month 2018 Residential

2017 Commercial

2018 Commercial

2017 Industrial

2018 Industrial

83

Elk River Municipal Utilities Monthly Water Pumpage

140

Pumpage in Million Gal.

120 100 80 60 40 20 0

Month

2017

2018

Elk River Municipal Utilities Peak Day Pumpage 6

Peak Day in Million Gal.

5

4

3

2

1

0

Month

2017

84

2018

Elk River Municipal Utilities Monthly Water Sales 140

Sales in Million Gal.

120 100 80 60 40 20 0

Month

2017

2018

Elk River Municipal Utilities Monthly Water Sales

$450,000 $400,000

Sales in Dollars

$350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0

Month

2017

85

2018

ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING NOVEMBER 2018 2018 NOVEMBER

Electric Revenue Operating Revenue Elk River 440.4411 ELECT SALES/ELK RIVER RES

2018 YTD BUDGET

2018 YTD

2018 ANNUAL BUDGET

2018 YTD Bud Var%

2017 NOVEMBER

2017 YTD

YTD VARIANCE

2017 v. 2018 Actual Var%

893,314

11,081,237

10,367,792

11,311,745

7

875,851

9,893,648

1,187,589

12

232,379

2,990,335

3,080,178

3,322,359

(3)

249,714

2,939,314

51,020

2

1,486,985

18,061,598

17,479,004

18,817,086

3

1,498,962

16,679,646

1,381,952

8

2,612,680

32,133,171

30,926,975

33,451,191

4

2,624,528

29,512,609

2,620,562

9

89,101

1,168,138

1,141,814

1,236,960

2

88,973

1,089,596

78,541

7

440.4417 ELECT SALES/OTSEGO NON-DEM

31,583

425,998

418,309

450,676

2

30,435

399,178

26,819

7

440.4418 ELECT SALES/OTSEGO DEMAND

80,791

967,853

947,324

1,009,043

2

73,054

904,000

63,852

7

201,476

2,561,989

2,507,448

2,696,680

2

192,463

2,392,776

169,213

7

13,913

172,223

176,828

193,485

(3)

14,062

168,741

3,482

2

440.4412 ELECT SALES/ER NON-DEMAND 440.4413 ELECT SALES/ER DEMAND Total For Elk River: Otsego 440.4416 ELECT SALES/OTSEGO RES

Total For Otsego: Rural Big Lake 440.4421 ELECT SALES/BIG LAKE RES 440.4422 ELECT SALES/BL NON-DEMAND

156

3,780

4,162

4,315

(9)

227

3,972

(192)

(5)

14,069

176,003

180,990

197,800

(3)

14,289

172,713

3,289

2

13,677

174,585

177,918

194,263

(2)

13,183

169,782

4,803

3

440.4432 ELECT SALES/DAYTON NON-DEM

2,708

33,918

34,478

37,193

(2)

2,578

32,901

1,017

3

Total For Dayton:

16,385

208,504

212,397

231,456

(2)

15,762

202,683

5,820

3

Public St & Hwy Lighting 440.4414 ELECT SALES/ELK RIVER SEC LTS

18,692

201,507

194,858

213,409

3

17,760

185,946

15,560

8

Total For Public St & Hwy Lighting:

18,692

201,507

194,858

213,409

3

17,760

185,946

15,560

8

Total For Rural Big Lake: Dayton 440.4431 ELECT SALES/DAYTON RES

Generation and Sub Station Credit 440.4550 SUB-STATION CREDIT

0

3,600

3,600

3,600

0

400

4,400

(800)

(18)

Total For Generation and Sub Station Credit:

0

3,600

3,600

3,600

0

400

4,400

(800)

(18)

Dispersed Generation Credit 440.4552 DISPERSED GENERATION CREDIT

0

(714,867)

(655,851)

(694,616)

9

(39,511)

(736,434)

21,566

(3)

Total For Dispersed Generation Credit:

0

(714,867)

(655,851)

(694,616)

9

(39,511)

(736,434)

21,566

(3)

0

0

0

0

0

39,552

422,160

(422,160)

(100)

0

(19,140)

(13,500)

(13,500)

42

0

(39,543)

20,403

(52)

Other Revenue/CIP/Rate Increase/AC Credit 440.4554 RATE INCREASE 440.4555 A/C CREDIT

86

ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING NOVEMBER 2018 2018 NOVEMBER

Electric Total For Other Revenue/CIP/Rate Increase/AC Credit:

2018 YTD BUDGET

2018 YTD

2018 ANNUAL BUDGET

2018 YTD Bud Var%

2017 NOVEMBER

2017 YTD

YTD VARIANCE

2017 v. 2018 Actual Var%

0

(19,140)

(13,500)

(13,500)

42

39,552

382,617

(401,757)

(105)

2,863,304

34,550,770

33,356,919

36,086,021

4

2,865,245

32,117,313

2,433,456

8

Total Operating Revenue Other Operating Revenue Interest/Dividend Income 460.4691 INTEREST & DIVIDEND INCOME

8,814

314,302

73,333

80,000

329

5,881

71,358

242,943

340

Total For Interest/Dividend Income:

8,814

314,302

73,333

80,000

329

5,881

71,358

242,943

340

Customer Penalties 470.4701 CUSTOMER DELINQUENT PENALT

16,366

186,295

227,982

250,000

(18)

22,247

225,160

(38,865)

(17)

Total For Customer Penalties:

16,366

186,295

227,982

250,000

(18)

22,247

225,160

(38,865)

(17)

LFG Project 470.4721 LFG PROJECT

93,069

1,043,067

1,034,804

1,128,878

1

98,201

997,039

46,027

5

Total For LFG Project:

93,069

1,043,067

1,034,804

1,128,878

1

98,201

997,039

46,027

5

Connection Fees 470.4702 DISCONNECT & RECONNECT CHA

37,775

264,003

146,894

150,000

80

9,655

216,835

47,167

22

Total For Connection Fees:

37,775

264,003

146,894

150,000

80

9,655

216,835

47,167

22

Misc Revenue 470.4703 MISC ELEC REVENUE - TEMP CHG 470.4704 STREET LIGHT 470.4715 TRANSMISSION INVESTMENTS 470.4722 MISC NON-UTILITY 470.4723 GAIN ON DISPOSITION OF PROP 470.4750 RENTAL PROPERTY INCOME

300

1,800

0

0

0

0

6,572

(4,772)

(73)

6,000

33,000

0

0

0

0

19,850

13,150

66

22,898

246,900

114,583

125,000

115

12,627

130,684

116,216

89

5,260

46,886

36,666

40,000

28

4,320

144,146

(97,259)

(67)

0

16,000

0

0

0

0

5,152

10,848

211

2,020

23,467

9,180

9,180

156

2,060

24,040

(572)

(2)

470.4770 CONTRIBUTIONS FROM CUSTOME

0

325,923

70,583

77,000

362

8,467

165,851

160,072

97

470.4780 CONTRIBUTIONS FROM GRANTS

0

0

10,000

10,000

(100)

0

20,358

(20,358)

(100)

36,478

693,979

241,013

261,180

188

27,476

516,655

177,323

34

192,503

2,501,647

1,724,028

1,870,058

45

163,461

2,027,049

474,597

23

192,503

2,501,647

1,724,028

1,870,058

45

163,461

2,027,049

474,597

23

3,055,808

37,052,417

35,080,948

37,956,080

6

3,028,706

34,144,362

2,908,054

9

Total For Misc Revenue: Total Other Revenue Total For Total Other Revenue:

Total Revenue Expenses

87

ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING NOVEMBER 2018

Electric Purchased Power 540.5551 PURCHASED POWER

2018 NOVEMBER

2018 YTD BUDGET

2018 YTD

2018 ANNUAL BUDGET

2018 YTD Bud Var%

2017 NOVEMBER

2017 YTD

YTD VARIANCE

2017 v. 2018 Actual Var%

1,950,511

24,655,178

23,825,284

25,964,551

3

1,792,515

23,251,592

1,403,586

6

1,950,511

24,655,178

23,825,284

25,964,551

3

1,792,515

23,251,592

1,403,586

6

7,061

91,063

114,583

125,000

(21)

8,715

91,300

(237)

0

540.5471 DIESEL OIL FUEL

1,375

10,765

14,003

15,277

(23)

1,731

10,963

(197)

(2)

540.5472 NATURAL GAS

2,633

20,744

21,523

23,480

(4)

2,657

19,177

1,567

8

540.5483 STATION PWR & WTR CONSP/PLA

2,765

28,983

28,882

32,000

0

2,724

26,831

2,152

8

540.5484 OTHER EXP/PLANT SUPPLIES-ETC

624

4,335

2,750

3,000

58

198

1,706

2,628

154

540.5491 MISC OTHER PWR GENERATION E

1,335

7,966

4,607

5,026

73

0

4,333

3,632

84

540.5521 MAINTENANCE OF STRUCTURE/P

1,436

20,922

27,575

30,082

(24)

941

19,327

1,594

8

540.5531 MTCE OF ENGINES/GENERATORS-

1,530

5,945

33,948

37,035

(82)

544

21,854

(15,908)

(73)

Total For Purchased Power: Operating & Mtce Expense 540.5461 OPERATING SUPERVISION

540.5541 MTCE OF PLANT/LAND IMPROVE Total For Operating & Mtce Expense: Landfill Gas 550.5050 LFG PURCHASED GAS 550.5051 LANDFILL GAS O&M 550.5052 LFG ADMIN 550.5053 LFG INSURANCE 550.5054 LFG MTCE Total For Landfill Gas: Transmission Expense 560.5620 TRANSMISSION MTCE AND EXPE Total For Transmission Expense: Distribution Expense 580.5801 REMOVE EXISTING SERV & METE 580.5821 SCADA EXPENSES 580.5831 TRANSFORMER EX/OVERHD & UN 580.5851 MTCE OF SIGNAL SYSTEMS 580.5861 METER EXP - REMOVE & RESET 580.5871 TEMP SERVICE-INSTALL & REMO 580.5881 MISC DISTRIBUTION EXPENSE 580.5890 INTERCONNECTION CARRYING C

1,212

16,578

13,804

15,059

20

0

4,753

11,824

249

19,976

207,304

261,677

285,959

(21)

17,513

200,249

7,055

4

12,471

150,384

158,184

172,565

(5)

12,792

144,017

6,366

4

43,350

468,432

476,666

520,000

(2)

45,022

483,739

(15,307)

(3)

154

2,665

35,566

38,800

(93)

31

7,688

(5,023)

(65)

1,412

14,896

18,677

20,375

(20)

1,312

14,887

9

0

111

1,210

5,500

6,000

(78)

759

1,724

(514)

(30)

57,500

637,589

694,595

757,740

(8)

59,916

652,058

(14,468)

(2)

1,406

18,249

34,092

37,192

(46)

787

10,135

8,113

80

1,406

18,249

34,092

37,192

(46)

787

10,135

8,113

80

91

1,468

2,294

2,503

(36)

244

642

826

129

4,225

20,271

27,521

30,023

(26)

18,778

21,851

(1,579)

(7)

(7,101)

15,006

20,980

25,000

(28)

650

16,701

(1,694)

(10)

328

2,566

2,302

2,512

11

0

2,488

78

3

0

479

2,298

2,507

(79)

0

748

(268)

(36)

1,490

1,358

2,304

2,514

(41)

0

5,783

(4,424)

(77)

14,792

214,880

289,332

315,635

(26)

15,575

287,147

(72,266)

(25)

0

0

3,300

3,600

(100)

0

0

0

0

88

ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING NOVEMBER 2018 2018 NOVEMBER

Electric Total For Distribution Expense: Maintenance Expense 590.5911 MTCE OF STRUCTURES 590.5921 MTCE OF SUBSTATIONS 590.5922 MTCE OF SUBSTATION EQUIPME

13,827

2018 YTD BUDGET

2018 YTD 256,032

2018 ANNUAL BUDGET

350,333

2018 YTD Bud Var%

2017 NOVEMBER

384,294

(27)

35,248

2017 YTD

YTD VARIANCE

335,363

(79,330)

2017 v. 2018 Actual Var% (24)

190

3,396

6,884

7,510

(51)

0

3,169

226

7

(520)

19,666

22,990

25,081

(14)

1,959

17,102

2,564

15

364

7,691

32,083

35,000

(76)

169

2,540

5,151

203

590.5931 MTCE OF OVERHD LINES/TREE TR

0

173,857

132,044

150,335

32

18,563

72,192

101,665

141

590.5932 MTCE OF OVERHD LINES/STANDB

2,201

25,884

27,500

30,000

(6)

2,176

25,168

716

3

590.5933 MTCE OF OVERHEAD

8,657

140,279

177,670

190,641

(21)

12,758

127,450

12,829

10

590.5941 MTCE OF UNDERGROUND/DISTRI

9,475

100,146

110,901

118,438

(10)

7,222

75,089

25,057

33

590.5943 LOCATE ELECTRIC LINES

3,109

43,104

50,688

55,297

(15)

3,692

59,345

(16,240)

(27)

10,572

72,075

46,081

50,271

56

1,888

43,403

28,672

66

590.5961 MTCE OF STREET LIGHTING

6,979

42,789

37,404

40,750

14

2,630

31,711

11,078

35

590.5962 MTCE OF SECURITY LIGHTING

2,791

9,678

11,916

13,000

(19)

1,782

12,416

(2,737)

(22)

590.5971 MTCE OF METERS

6,643

122,971

100,833

110,000

22

12,642

115,481

7,490

6

590.5951 MTCE OF LINE TRANSFORMERS

590.5972 VOLTAGE COMPLAINTS

368

5,632

7,359

8,029

(23)

1,632

5,908

(276)

(5)

590.5981 SALARIES/TRANS & DISTRIBUTIO

2,672

34,294

46,024

50,208

(25)

2,833

33,593

701

2

590.5985 ELECTRIC MAPPING

9,310

106,831

96,713

105,506

10

1,711

58,146

48,684

84

590.5991 MTCE OF OVERHEAD SERVICE/2N

1,454

15,187

16,041

17,500

(5)

650

16,583

(1,395)

(8)

590.5992 MTCE OF UNDERGROUND ELEC S

1,820

27,742

36,810

40,157

(25)

2,984

35,471

(7,729)

(22)

590.5993 LOCATE UNDERGROUND SECOND

2,166

29,941

36,666

40,000

(18)

3,007

32,360

(2,418)

(7)

12,248

210,184

182,728

195,596

15

12,260

159,121

51,062

32

80,505

1,191,357

1,179,345

1,283,319

1

90,564

926,255

265,102

29

231,841

2,064,253

1,996,075

2,183,821

3

171,745

1,870,538

193,715

10

Total For Depreciation & Amortization:

231,841

2,064,253

1,996,075

2,183,821

3

171,745

1,870,538

193,715

10

Interest Expense 596.8071 INTEREST ON BONDS/LONG TERM

61,386

369,258

350,029

401,802

5

28,105

316,908

52,349

17

590.5995 TRANSPORTATION EXPENSE Total For Maintenance Expense: Depreciation & Amortization 595.8031 DEPRECIATION

596.8075 INTEREST ON DEFEASED BONDS

(276)

(3,040)

(3,040)

(3,316)

0

(276)

(3,040)

0

0

597.8281 AMORTIZATION OF DEBT DISCOU

(5,228)

(41,315)

(42,684)

(47,381)

(3)

(3,956)

(43,521)

2,205

(5)

Total For Interest Expense:

55,882

324,902

304,304

351,103

7

23,872

270,346

54,555

20

0

0

0

0

0

0

20

(20)

(100)

0

0

0

0

0

0

20

(20)

(100)

Security 597.8172 SECURITY EXPENSE Total For Security:

89

ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING NOVEMBER 2018

Electric Other Operating Expense 597.8165 EV CHARGING EXPENSE 597.8213 LOSS ON DISPOSITION OF PROP (C 597.8263 OTHER DONATIONS

2018 NOVEMBER

2018 YTD BUDGET

2018 YTD

2018 ANNUAL BUDGET

2018 YTD Bud Var%

2017 NOVEMBER

2017 YTD

YTD VARIANCE

2017 v. 2018 Actual Var%

395

3,278

2,750

3,000

19

97

465

2,812

603

0

20,962

0

0

0

0

0

20,962

0

77

2,238

5,003

5,003

(55)

0

53,584

(51,345)

(96)

597.8264 DAM MAINTENANCE EXPENSE

0

0

458

500

(100)

30

323

(323)

(100)

597.8265 MUTUAL AID

0

1,281

0

0

0

0

0

1,281

0

597.8302 PENSION EXPENSE

0

0

0

100,000

0

0

0

0

0

1,168

19,641

916

1,000

2,042

68

717

18,924

2,639

148

8,576

4,968

4,968

73

188

10,485

(1,908)

(18)

1,788

55,980

14,096

114,471

297

384

65,576

(9,596)

15

2,459

19,588

36,802

40,148

(47)

2,275

25,071

(5,483)

(22)

597.8341 INTEREST PD ON METER DEPOSIT 597.8400 RENTAL PROPERTY EXPENSE Total For Other Operating Expense: Customer Accounts Expense 900.9021 METER READING EXPENSE 900.9030 COLLECTING EXP DISC/RECONNE

695

12,805

13,020

14,000

(2)

960

13,355

(550)

(4)

21,187

234,861

229,166

250,000

2

19,931

206,788

28,072

14

900.9061 CUST BLGS NOT PD/SENT FOR CO

230

11,843

41,250

45,000

(71)

429

1,317

10,525

799

Total For Customer Accounts Expense:

24,572

279,098

320,239

349,148

(13)

23,597

246,533

32,565

13

Administrative Expense 920.9201 SALARIES/OFFICE & COMMISSION

49,847

549,359

723,672

789,461

(24)

55,199

636,774

(87,414)

(14)

900.9051 MISC CUSTOMER ACCTS EXP-CO

920.9205 TEMPORARY STAFFING

0

13,596

3,666

4,000

271

0

0

13,596

0

920.9211 OFFICE SUPPLIES & EXPENSE

9,181

64,694

82,500

90,000

(22)

4,405

72,380

(7,685)

(11)

920.9212 LT & WATER CONSUMPTION/OFFI

1,926

25,864

30,194

32,000

(14)

1,844

34,617

(8,752)

(25)

920.9213 BANK CHARGES 920.9221 LEGAL FEES 920.9231 AUDITING FEES 920.9241 INSURANCE 920.9260 UTILITY SHARE DEF COMP

355

2,499

3,208

3,500

(22)

222

2,474

25

1

1,512

33,776

27,500

30,000

23

1,504

25,396

8,380

33

1,500

14,900

14,300

15,600

4

1,221

25,284

(10,384)

(41)

26,350

142,861

124,492

135,810

15

24,462

138,958

3,903

3

6,908

69,428

52,249

57,000

33

0

51,881

17,546

34

920.9261 UTIL SH OF MEDICAL/DENTAL/DI

49,109

585,145

655,036

710,000

(11)

50,261

610,613

(25,468)

(4)

920.9262 UTILITY SHARE OF PERA

19,348

204,155

220,000

240,000

(7)

18,400

196,863

7,291

4

920.9263 UTILITY SHARE OF FICA

17,074

191,929

210,833

230,000

(9)

17,208

185,579

6,349

3

920.9264 EMPLOYEES SICK PAY

10,742

101,675

100,833

110,000

1

7,681

91,383

10,291

11

920.9265 EMPLOYEE HOLIDAY PAY

34,409

99,816

99,427

109,370

0

0

0

99,816

0

920.9266 EMPLOYEE VACATION

23,143

190,421

170,706

186,225

12

47,009

267,107

(76,686)

(29)

920.9267 UPMIC DISTRIBUTION

0

42,047

0

0

0

0

0

42,047

0

920.9291 CONSULTING FEES

0

52,236

129,583

135,000

(60)

9,479

49,511

2,724

6

90

ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING NOVEMBER 2018 2018 NOVEMBER

Electric

2018 YTD BUDGET

2018 YTD

2018 ANNUAL BUDGET

2018 YTD Bud Var%

2017 NOVEMBER

2017 YTD

YTD VARIANCE

2017 v. 2018 Actual Var%

920.9301 TELEPHONE

1,773

18,727

19,404

21,168

(3)

1,800

19,270

(542)

(3)

920.9302 ADVERTISING

1,260

25,839

17,571

18,000

47

2,800

10,071

15,768

157

920.9303 DUES & SUBSCRIPTIONS - FEES

7,659

211,176

168,666

184,000

25

7,357

79,187

131,988

167

0

5,235

0

0

0

412

23,832

(18,596)

(78)

20,179

130,699

197,846

221,584

(34)

8,454

104,068

26,630

26

920.9304 TRAVEL EXPENSE 920.9305 SCHOOLS & MEETINGS 920.9321 MTCE OF GEN PLANT/OFF HEATIN

430

4,730

10,083

11,000

(53)

547

7,826

(3,096)

(40)

Total For Administrative Expense:

282,712

2,780,818

3,061,777

3,333,718

(9)

260,271

2,633,084

147,733

6

325

7,255

11,500

17,250

(37)

1,338

11,668

(4,413)

(38)

0

245

69,333

104,000

(100)

(3,437)

19,824

(19,579)

(99)

45

649

148,002

177,603

(100)

183

494

154

31

General Expense 920.9269 CIP REBATES - RESIDENTIAL 920.9270 CIP REBATES - COMMERCIAL 920.9271 CIP - ADMINISTRATION 920.9272 CIP - MARKETING 920.9273 CIP - LABOR 920.9274 CIP REBATES - LOW INCOME 920.9275 CIP - LOW INCOME LABOR

101

7,315

29,883

32,600

(76)

461

9,718

(2,403)

(25)

11,203

126,718

97,239

106,079

30

3,114

46,939

79,778

170

0

0

1,758

2,638

(100)

5,609

5,609

(5,609)

(100)

385

13,235

0

0

0

0

0

13,235

0

2,313

25,585

23,239

25,264

10

1,983

22,351

3,233

14

(24)

2,000

2,794

3,048

(28)

0

(263)

2,263

(860)

14,349

183,004

383,749

468,482

(52)

9,254

116,343

66,660

57

2,734,874

32,653,771

32,425,571

35,513,799

1

2,485,672

30,578,099

2,075,671

7

Operating Transfer Operating Transfer/Other Funds 597.8262 TRANSFER TO CITY 4% ER REVEN

92,285

1,107,412

1,074,022

1,165,000

3

90,406

1,023,595

83,816

8

Total For Operating Transfer/Other Funds:

92,285

1,107,412

1,074,022

1,165,000

3

90,406

1,023,595

83,816

8

920.9281 ENVIRONMENTAL COMPLIANCE 920.9306 MISC GENERAL EXPENSE Total For General Expense: Total Expenses(before Operating Transfers)

Utilities & Labor Donated 597.8261 UTILITIES & LABOR DONATED

19,386

197,931

207,354

232,006

(5)

17,201

184,253

13,677

7

Total For Utilities & Labor Donated:

19,386

197,931

207,354

232,006

(5)

17,201

184,253

13,677

7

Total Operating Transfer Total For Total Operating Transfer:

111,671

1,305,343

1,281,377

1,397,006

2

107,608

1,207,849

97,494

8

209,262

3,093,302

1,373,999

1,045,274

125

435,425

2,358,413

734,888

31

Net Income Profit(Loss)

91

ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING NOVEMBER 2018 2018 NOVEMBER

Water Revenue Operating Revenue Water Sales 610.6101 WATER SALES

2018 YTD BUDGET

2018 YTD

2018 ANNUAL BUDGET

2018 YTD Bud Var%

2017 NOVEMBER

2017 YTD

YTD VARIANCE

2017 v. 2018 Actual Var%

153,861

2,322,881

2,082,989

2,200,002

12

147,391

2,123,688

199,192

9

153,861

2,322,881

2,082,989

2,200,002

12

147,391

2,123,688

199,192

9

153,861

2,322,881

2,082,989

2,200,002

12

147,391

2,123,688

199,192

9

153,861

2,322,881

2,082,989

2,200,002

12

147,391

2,123,688

199,192

9

2,203

22,496

18,333

20,000

23

1,470

29,267

(6,770)

(23)

0

466

0

0

0

0

428

37

9

2,203

22,963

18,333

20,000

25

1,470

29,696

(6,733)

(23)

(1,002)

16,917

13,998

15,000

21

2,155

18,181

(1,264)

(7)

Total For Customer Penalties:

(1,002)

16,917

13,998

15,000

21

2,155

18,181

(1,264)

(7)

Connection Fees 620.6401 WATER/ACCESS/CONNECTION FE

39,336

678,932

91,666

100,000

641

31,251

733,792

(54,859)

(7)

620.6402 CUSTOMER CONNECTION FEES

2,925

33,441

18,333

20,000

82

6,360

52,371

(18,930)

(36)

620.6407 BULK WATER SALES/HYDRANT R

5,942

14,754

5,133

5,600

187

0

0

14,754

0

Total For Connection Fees:

48,203

727,127

115,133

125,600

532

37,611

786,163

(59,035)

(8)

Total For Water Sales: Total Operating Revenue Total For Total Operating Revenue: Other Operating Revenue Interest/Dividend Income 460.4691 INTEREST & DIVIDEND INCOME 460.4692 OTHER INT/MISC REVENUE Total For Interest/Dividend Income: Customer Penalties 620.6301 CUSTOMER PENALTIES

Misc Revenue 470.4722 MISC NON-UTILITY

0

263

0

0

0

0

102

160

158

505

5,866

2,295

2,295

156

515

6,010

(143)

(2)

620.6323 GAIN ON DISPOSITION OF PROP

0

7,425

0

0

0

0

448

6,977

1,557

620.6403 MISCELLANEOUS REVENUE

0

97

0

0

0

0

598

(501)

(84)

620.6404 HYDRANT MAINTENANCE PROGR

980

10,858

6,416

7,000

69

975

8,223

2,634

32

620.6405 CONTRIBUTIONS FROM DEVELOP

0

0

0

0

0

0

55,882

(55,882)

(100)

18,504

199,812

199,813

218,317

0

17,792

192,127

7,685

4

19,989

224,323

208,524

227,612

8

19,282

263,391

(39,068)

(15)

69,393

991,331

355,989

388,212

178

60,519

1,097,433

(106,101)

(10)

470.4750 RENTAL PROPERTY INCOME

620.6406 WATER TOWER LEASE Total For Misc Revenue: Total Other Revenue

92

ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING NOVEMBER 2018 2018 NOVEMBER

Water Total For Total Other Revenue:

Total Revenue Expenses Production Expense 700.7021 MTCE OF STRUCTURES Total For Production Expense: Pumping Expense 710.7101 SUPERVISION 710.7181 SUPPLIES & EXPENSE/MISC

2018 YTD BUDGET

2018 YTD

2018 ANNUAL BUDGET

2018 YTD Bud Var%

2017 NOVEMBER

2017 YTD

YTD VARIANCE

2017 v. 2018 Actual Var%

69,393

991,331

355,989

388,212

178

60,519

1,097,433

(106,101)

(10)

223,255

3,314,212

2,438,978

2,588,215

36

207,911

3,221,122

93,090

3

2,757

50,385

47,100

50,000

7

1,065

40,607

9,778

24

2,757

50,385

47,100

50,000

7

1,065

40,607

9,778

24

4,431

50,860

55,299

60,327

(8)

4,397

48,708

2,152

4

15,767

207,826

210,833

230,000

(1)

13,640

183,997

23,829

13

710.7182 SAMPLING

2,071

15,967

14,778

16,122

8

1,281

14,297

1,670

12

710.7183 CHEMICAL FEED

1,187

22,763

27,500

30,000

(17)

1,747

25,474

(2,710)

(11)

0

161

0

0

0

27

27

134

479

15,264

134,527

216,852

250,586

(38)

11,314

133,924

602

0

177

6,948

10,521

12,513

(34)

204

5,503

1,444

26

38,898

439,056

535,785

599,548

(18)

32,613

411,933

27,122

7

710.7201 MTCE OF ELECTRIC PUMPING EQ 710.7220 MTCE OF WELLS 710.7230 SCADA - PUMPING Total For Pumping Expense: Distribution Expense 730.7301 MTCE OF WATER MAINS

11,751

75,700

69,843

87,631

8

2,576

35,446

40,253

114

730.7309 LOCATE WATER LINES

463

13,179

14,226

15,066

(7)

1,682

12,712

466

4

730.7310 LOCATE WATER MAIN

16

201

183

200

10

16

16

184

1,082

730.7311 MTCE OF WATER SERVICES

0

0

0

0

0

340

356

(356)

(100)

730.7312 WATER METER SERVICE

3,448

40,753

33,038

36,042

23

576

6,484

34,268

528

730.7321 MTCE OF CUSTOMERS SERVICE

1,773

18,758

23,001

25,092

(18)

1,571

18,487

271

1

730.7325 WATER MAPPING

106

9,747

14,666

16,000

(34)

3,740

16,115

(6,367)

(40)

730.7331 MTCE OF WATER HYDRANTS - PU

846

21,205

18,991

19,213

12

646

25,592

(4,387)

(17)

730.7332 MTCE OF WATER HYDRANTS - PR

0

1,065

11,763

11,900

(91)

0

0

1,065

0

730.7341 WATER CLOTHING/PPE

485

3,895

6,416

7,000

(39)

613

3,824

71

2

730.7391 WAGES/WATER

448

5,248

13,787

15,041

(62)

462

5,323

(75)

(1)

730.7395 TRANSPORTATION EXPENSE

676

14,238

13,922

15,000

2

824

10,995

3,242

29

0

12,984

12,526

15,000

4

0

11,396

1,588

14

20,016

216,978

232,369

263,185

(7)

13,050

146,752

70,225

48

95,844

1,097,751

1,124,624

1,228,866

(2)

114,215

1,090,291

7,460

1

730.7399 GENERAL EXP/WATER PERMIT Total For Distribution Expense: Depreciation & Amortization 595.8031 DEPRECIATION

93

ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING NOVEMBER 2018 2018 NOVEMBER

Water

2018 YTD BUDGET

2018 YTD

2018 ANNUAL BUDGET

2018 YTD Bud Var%

2017 NOVEMBER

2017 YTD

YTD VARIANCE

2017 v. 2018 Actual Var%

Total For Depreciation & Amortization:

95,844

1,097,751

1,124,624

1,228,866

(2)

114,215

1,090,291

7,460

1

Interest Expense 596.8071 INTEREST ON BONDS/LONG TERM

3,498

39,195

39,195

42,693

0

4,211

46,972

(7,776)

(17)

(69)

(760)

(760)

(829)

0

(69)

(760)

0

0

Total For Interest Expense:

3,429

38,435

38,435

41,864

0

4,142

46,211

(7,776)

(17)

Other Operating Expense 597.8213 LOSS ON DISPOSITION OF PROP (C

0

0

1,000

1,000

(100)

0

5,099

(5,099)

(100)

597.8264 DAM MAINTENANCE EXPENSE

0

332

0

0

0

0

0

332

0

597.8302 PENSION EXPENSE

0

0

0

5,000

0

0

0

0

0

596.8075 INTEREST ON DEFEASED BONDS

597.8341 INTEREST PD ON METER DEPOSIT

35

688

22

25

2,891

2

25

662

2,652

597.8400 RENTAL PROPERTY EXPENSE

37

2,144

1,242

1,242

73

47

2,621

(477)

(18)

72

3,164

2,264

7,267

40

49

7,746

(4,581)

(59)

Total For Other Operating Expense: Customer Accounts Expense 900.9021 METER READING EXPENSE

94

4,458

9,213

10,051

(52)

853

8,672

(4,214)

(49)

4,647

54,380

50,416

55,000

8

4,662

47,974

6,406

13

900.9061 CUST BLGS NOT PD/SENT FOR CO

0

57

916

1,000

(94)

0

365

(308)

(84)

Total For Customer Accounts Expense:

4,742

58,896

60,546

66,051

(3)

5,515

57,012

1,883

3

Administrative Expense 920.9201 SALARIES/OFFICE & COMMISSION

14,286

146,016

181,486

197,985

(20)

13,326

155,884

(9,868)

(6)

0

3,399

916

1,000

271

0

0

3,399

0

1,187

12,698

25,666

28,000

(51)

1,461

23,023

(10,325)

(45)

481

6,463

7,622

8,000

(15)

460

8,648

(2,185)

(25)

900.9051 MISC CUSTOMER ACCTS EXP-CO

920.9205 TEMPORARY STAFFING 920.9211 OFFICE SUPPLIES & EXPENSE 920.9212 LT & WATER CONSUMPTION/OFFI 920.9213 BANK CHARGES 920.9221 LEGAL FEES 920.9231 AUDITING FEES 920.9241 INSURANCE 920.9260 UTILITY SHARE DEF COMP

88

634

916

1,000

(31)

55

623

11

2

378

7,067

4,583

5,000

54

376

4,538

2,529

56

375

3,725

3,575

3,900

4

305

6,321

(2,596)

(41)

1,784

22,153

24,764

27,015

(11)

4,592

23,005

(851)

(4)

1,377

11,878

9,166

10,000

30

0

9,682

2,195

23

10,867

129,135

134,806

146,000

(4)

10,615

128,601

534

0

920.9262 UTILITY SHARE OF PERA

3,508

38,483

40,333

44,000

(5)

3,468

38,079

404

1

920.9263 UTILITY SHARE OF FICA

3,011

36,497

40,333

44,000

(10)

3,218

36,170

326

1

920.9264 EMPLOYEES SICK PAY

2,109

22,152

18,333

20,000

21

1,727

18,584

3,567

19

920.9265 EMPLOYEE HOLIDAY PAY

6,274

18,411

23,500

25,850

(22)

0

0

18,411

0

920.9266 EMPLOYEE VACATION

4,305

31,945

32,723

35,698

(2)

8,918

48,597

(16,651)

(34)

920.9261 UTIL SH OF MEDICAL/DENTAL/DI

94

ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING NOVEMBER 2018 2018 NOVEMBER

Water

2018 YTD BUDGET

2018 YTD

2018 ANNUAL BUDGET

2018 YTD Bud Var%

2017 NOVEMBER

2017 YTD

YTD VARIANCE

2017 v. 2018 Actual Var%

920.9267 UPMIC DISTRIBUTION

0

8,187

0

0

0

0

0

8,187

0

920.9268 MISCELLANEOUS - WELLHEAD P

0

0

916

1,000

(100)

0

80

(80)

(100)

920.9291 CONSULTING FEES

0

353

18,333

20,000

(98)

2,369

7,933

(7,579)

(96)

920.9301 TELEPHONE

435

4,768

4,851

5,292

(2)

445

5,109

(340)

(7)

920.9302 ADVERTISING

315

8,029

5,857

6,000

37

700

4,130

3,899

94

9,248

41,093

39,500

41,000

4

8,513

38,131

2,961

8

0

746

0

0

0

0

4,177

(3,430)

(82)

920.9303 DUES & SUBSCRIPTIONS - FEES 920.9304 TRAVEL EXPENSE 920.9305 SCHOOLS & MEETINGS

1,135

15,929

33,991

38,350

(53)

587

15,822

106

1

920.9321 MTCE OF GEN PLANT/OFF HEATIN

107

1,177

2,475

2,700

(52)

137

1,939

(762)

(39)

Total For Administrative Expense:

61,277

570,946

654,652

711,790

(13)

61,278

579,084

(8,137)

(1)

General Expense 920.9269 CIP REBATES - RESIDENTIAL

50

3,768

4,125

4,500

(9)

215

3,714

54

1

920.9270 CIP REBATES - COMMERCIAL

0

0

458

500

(100)

0

100

(100)

(100)

920.9271 CIP - ADMINISTRATION

0

0

929

1,014

(100)

0

731

(731)

(100)

920.9272 CIP - MARKETING 920.9273 CIP - LABOR 920.9281 ENVIRONMENTAL COMPLIANCE 920.9306 MISC GENERAL EXPENSE Total For General Expense:

0

0

687

750

(100)

0

480

(480)

(100)

316

3,788

4,591

5,009

(18)

308

4,061

(272)

(7)

43

503

552

603

(9)

43

474

28

6

0

538

927

1,012

(42)

0

(3)

541

(18,067)

410

8,599

12,272

13,388

(30)

567

9,559

(960)

(10)

227,447

2,484,214

2,708,050

2,981,960

(8)

232,497

2,389,199

95,014

4

0

0

458

500

(100)

0

0

0

0

0

0

458

500

(100)

0

0

0

0

(4,191)

829,998

(269,530)

(394,245)

(408)

(24,586)

831,922

(1,923)

0

Total Expenses(before Operating Transfers) Operating Transfer Utilities & Labor Donated 597.8261 WATER AND LABOR DONATED Total Operating Transfer Total For Total Operating Transfer: Net Income Profit(Loss)

95

UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Troy Adams, P.E. – General Manager MEETING DATE: AGENDA ITEM NUMBER: January 8, 2019 5.2 SUBJECT: Wage & Benefits Committee Update ACTION REQUESTED: No action required BACKGROUND: At the November 2018 commission meeting, the commission directed the Wage & Benefits Committee (W&BC) to benchmark the management pay group and report back to the commission at the December 2018 meeting. The W&BC recommended to the commission at the December meeting to hire a third party to perform the management group benchmarking. The commission supported the committee’s request and directed staff to research potential consultants and report back to the commission in January 2019. DISCUSSION: Staff has identified three potential consultants to perform the work: Lockton Companies, MRA, and Mark Fritsch Consulting. Initial conference calls have been conducted with all three to review project scope. Staff is developing a refined scope and request for proposal to send to these three consultants. The proposals will be reviewed by the W&BC and a recommendation will be made at a commission meeting in either February or March.

______________________________________________________________________________ Page 1 of 1 96

UTILITIES COMMISSION MEETING TO: ERMU Commission MEETING DATE: January 8, 2019 SUBJECT: Staff Update ACTION REQUESTED: None

FROM: Troy Adams, P.E. – General Manager AGENDA ITEM NUMBER: 6.1a

DISCUSSION:  The Board of Directors of the Minnesota Municipal Power Agency (MMPA) met on December 18, 2018, at the offices of Shakopee Public Utilities. Commissioner Al Nadeau and I were both able to attend. The Board discussed the status of several renewable projects the Agency is pursuing. The Board approved MMPA’s budget and rates for 2019. The budgeted average rate to members for 2019 is $75.90 per MWh, a 1.0% increase over the 2018 budget. The Board elected the following officers for 2019: John Crooks – Chair, Matt Podhradsky – Vice Chair, Brian Frandle – Secretary, Troy Adams – Treasurer. 

The Minnesota Municipal Utilities Association (MMUA) Government Relations Committee held a conference call on January 4. On that call we reviewed the status of the Conservation Improvement Program (CIP) workgroup, received an update on pole attachment issues, received an update the Minnesota Energy Standards, and discussed other 2019 legislative session topics.



The Minnesota Rural Electric Association (MREA) and MMUA joint CIP workgroup has a meeting schedule at the office of the Center for Energy and the Environment (CEE) in St. Paul to discuss proposed CIP legislation. This meeting is scheduled for January 16.

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UTILITIES COMMISSION MEETING TO: ERMU Commission MEETING DATE: January 8, 2019 SUBJECT: Staff Update ACTION REQUESTED: None

FROM: Theresa Slominski – Finance & Office Manager AGENDA ITEM NUMBER: 6.1b

DISCUSSION:  The bulletproof glass at the front counter was installed after business hours on Friday, December 14. It looks very professional and still provides a good customer service experience. We are able to dialogue with customers, as the arched glass pieces allow sound to transfer easily, and there is no distortion or reduction in volume. 

Final power cost adjustment (PCA) totals distributed to customers throughout December were $258,717.57.



Inventory counts were completed December 27, 2018 and went very well. The new Inventory person hired at the end of February 2018 did a great job organizing the electric inventory throughout the year which facilitated a very efficient final inventory count. Final results for electric were 98.96% inventory accuracy, and 100% for water.



Early Performance Metrics Incentive Compensation preliminary reporting for 2018 4th quarter is attached, which shows a score of 85 out of 100. The missing 15 points are from two sub-categories: the Customer Satisfaction metric of 89%, which is under the goal of > 90%, worth 5 points, and the Employee Turnover metric of 9.09%, which is over the goal of < 7.5%, and worth 10 points. Final presentation of this will be in April 2019 when the financial audit is completed and those final numbers are available. We will need to accrue this expense for the audit and will be using the score of 85 and the multiplier of 100% for our calculations, effectively 1.7% of the possible 2%.

ATTACHMENTS:  4th Quarter 2018 PMIC preliminary results

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Elk River Municipal Utilities P.13-a - Performance Metrics and Incentive Compensation Policy Score Card - 2018

Category

Safety, Reliability and Quality of Utility Services

Customer Service and Employee Development

Percent

Sub-Category

Sub-Percent

Goal

Water Quality Standards

5

Meet Requirements

5

Lead and Copper quality

5

90th percentile

5

Bacteria Detection

5

0 positive samples

5

CAIDI

5

<120 Min

5

SAIDI

5

<90 Min

5

SAIFI

5

< 0.5

5

Line Loss

5

<5%

5

Water Loss

5

<12%

5

Customer Satisfaction

5

> 90%

0

Employee Turnover

10

< 7.5%

0

Participation in Recommended and Mandatory Trainings

10

> 95%

10

Score

Awarded Multiplier Percentage

4th qtr met met met

40

25

met

58.12

met

10.002

met

0.172

on track

2.32%

ontrack

9.31%

not met

89%

not met

9.09%

met

Financial Goals

35

Margins/Net Profit

20

> Budget

20

Reserves

10

> Target

10

Inventory Accuracy

5

> 95%

5

96.25%

on track met met

Total Multiplier: Adopted December 12, 2012 Revised October 11, 2016

99

99% Water 100%, Electric 98.96%

UTILITIES COMMISSION MEETING TO: ERMU Commission MEETING DATE: January 8, 2019 SUBJECT: Staff Update ACTION REQUESTED: None

FROM: Mark Fuchs – Electric Superintendent AGENDA ITEM NUMBER: 6.1c

DISCUSSION:  We had 17 new house services.  Continue working on collecting data with the GPS for our ArcView maps as time permits.  Finished with the removal of poles that were located in the rear lot line in Otsego.  Continue to work on the replacement of 16 poles that didn’t pass inspection. This task will be performed as a fill in between other jobs as they come in.  Completed our annual inventory count of materials; the preliminary numbers look good.  We went through the street lights that have a controller that turn on multiple lights at once to fix the ones not working.  Started tree trimming.  We had a switchgear fail that feeds United Health Group. They used their backup generators until the power was restored. We are working with the manufacturer of the switchgear to determine the cause of the failure.  Changed out 29 street light fixtures to LED in the Lafayette Woods and Cherrywood Hills Addition.  We had to redo the secondary wire at BZ Elk River apartments (original Guardian Angels) on 925 Angel Street; this allowed them to transition from one meter for the entire building to 25 separate meters.  We recently discovered a storm sewer that was damaged at 18233 Carson Court. Matt Stevens with the sewer department attempted to jet it out, but was unable. After digging it up, Brentenson Excavating determined that it had been unknowingly damaged by a contractor that had installed primary wire the fall of 2005. Brenteson Excavating replaced the damaged pipe and fixed the sidewalk that needed to be removed for the pipe repair. As the installation occurred over ten years ago, we were unable to file an insurance claim with the League of Minnesota Cities. Additionally, as this happen back in 2005 we are unsure if the storm sewer pipe was even located at the time the wire was installed, so the City has offered to split the cost for repairs with ERMU. There will need to be some landscape work done in the spring.  Zac Johnson and Mitch Girtz attended the Minnesota Municipal Utilities Association (MMUA) Transformer School December 11-14 in Marshall, MN.

______________________________________________________________________________ Page 1 of 1 100

UTILITIES COMMISSION MEETING TO: ERMU Commission MEETING DATE: January 8, 2019 SUBJECT: Staff Update ACTION REQUESTED: None

FROM: Mike Tietz –Technical Services Superintendent AGENDA ITEM NUMBER: 6.1d

DISCUSSION:  In December, the locating department had a total of 136 locate tickets consisting of six emergency tickets, 3 cancellations, 97 normal tickets and 22 updated tickets. This is a 46% decrease in volume of tickets from the previous month. 

Electrical Technicians continue with updating the power bill, substation checks, disconnects, reconnects, dealing with customer meter and off-peak issues, as well as installing new meters for commercial customers. Staff continues to infrared image the Station #14 substation feeder circuits to identify potential equipment failures. On December 19 Engines 1, 2, 3 & 4 were ran with no issues being reported.



The weekly meter reads continue to go well. Staff continues to audit meters for noncompliance with our clearance standards as well as looking for tampering of equipment.



Mapping department continues to enter GPS points and attribute points for all of our systems assets within the ESRI ArcView GIS system. We experienced a catastrophic server failure that resulted in a complete rebuild and reinstall of the GIS server. Staff has been working with city IT and ESRI personnel to troubleshoot and repair the server. We will be working with city IT staff to develop a backup plan to prevent this type of failure in the future.



Engineering has been working on testing relays for the power plant generators as well as working with staff on the testing of equipment out in the field.

______________________________________________________________________________ Page 1 of 1 101

UTILITIES COMMISSION MEETING TO: ERMU Commission MEETING DATE: January 8, 2019 SUBJECT: Staff Update ACTION REQUESTED: None

FROM: Eric Volk – Water Superintendent AGENDA ITEM NUMBER: 6.1e

DISCUSSION:  Delivered nine new water meters.  Sealed the water meter, and took curb stop ties from seven water services.  Completed 15 BACTI/Total Chlorine Residual Samples o All confirmed negative for Coliform Bacteria o Bacteriological/Disinfectant Residual Monthly Report submitted to the MDH  Completed 18 routine fluoride samples o All samples met MDH standards o Submitted MDH Fluoride Report o Completed one MDH validation fluoride sample  The water operators have completed the annual task of recharging all of our filters. We have ordered some filtration media for Water Treatment Plant (WTP) #4 that will be added when it arrives sometime in February.  The water department has been performing preventative maintenance on the water treatment plants. The operators are also repairing or upgrading any items requiring attention.  As Minnesota American Water Works Association (MNAWWA) Section Chair, I conducted the Board Meeting and Chair training in December. ATTACHMENTS:  December 2018 Pumping by Well

______________________________________________________________________________ Page 1 of 1 102

December 2018 Monthly Pumping By Well Well #8, 0, 0%

Well #2, 0, 0%

Well #9, 4.501, 11% Well #3, 9.784, 24%

Well #7, 4.99, 12%

Well #6, 5.115, 12% Well #4, 11.237, 27% Well #5, 5.972, 14%

Values Are Displayed in Millions of Gallons (Well #, Gallons Pumped, Percentage of Pumping)

103

UTILITIES COMMISSION MEETING TO: ERMU Commission MEETING DATE: January 8, 2019 SUBJECT: Staff Update ACTION REQUESTED: None

FROM: Tom Sagstetter – Conservation & Key Accounts Manager AGENDA ITEM NUMBER: 6.1f

DISCUSSION:  In the last month, the level two charger downtown had 5 sessions, and provided customers with 44 kWh of green energy. The charger in the ERMU/City Hall parking lot had 7 sessions and provided customers with 117 kWh of green energy. The DC fast charger at the Coborn’s fuel station had 16 sessions and provided 248 kWh of green energy to customers. The pricing at the public charging stations have now been changed to reflect energy only. The connection fees have been eliminated. The rates for 2019 are $0.20 for all energy at the DC Fast Charger and $0.15 for all energy at the Level Two chargers.  Completed the 2019 updates to the commercial rebate forms. The new forms were made available to the public on December 28, and look better than ever thanks to our communications coordinator. The total rebate budget for 2019 is $264,000.  Participated in discussion with the Drive Electric Minnesota policy work group. The upcoming year has great potential for electric vehicles and charging infrastructure as Phase 1 implementation ($11.75 million) of the Volkswagen (VW) settlement ramps up. This will be a key topic as work group discussions continue for the implementation of Phase 2 ($23.5 million) of the VW settlement.  Began working with Dave Berg Consulting to develop a standby rate. This rate will be utilized for large industrial customers that wish to self-generate. This rate will allow ERMU to recover the costs of maintaining the facilities required to meet the customer’s needs should they need to rely on ERMU.  Staff will work to meet with key commercial customers over the next couple weeks to discuss the new rates for 2019.  ERMU received notice that Prime Advertising & Design received a national award for the EV/ER Electric Vehicle Wrap in 2018. The award was provided by Graphic Design USA. ATTACHMENT:  Minnesota Pollution Control Agency - Executive Summary: Volkswagen Settlement Beneficiary Mitigation Plan – April 2018

______________________________________________________________________________ Page 1 of 1 104

Minnesota’s Volkswagen settlement state plan Executive summary The settlement In 2016 Volkswagen Corporation was caught violating air pollution standards for nitrogen oxides (NOX) in its diesel cars and SUVs. Their vehicles were producing 30-40 times more pollution than allowed by law. The federal government took VW to court and on October 2, 2017, the Department of Justice and VW signed a $15 billion settlement. A portion of the settlement – $2.9 billion – will be shared among the U.S. states and tribes, based on the number of violating vehicles registered in each jurisdiction. Minnesota’s share is $47 million. Governor Dayton designated the Minnesota Pollution Control Agency (MPCA) to manage the settlement funds, which will be spent over 10 years on projects to offset the excess pollution from the violating vehicles. States can develop programs and fund projects that make the most sense for them, within the boundaries set by the settlement. Because VW’s violations involved diesel models, the settlement will fund pollution reductions from diesel vehicles. States and tribes can only use the funds on activities outlined in the settlement, most of which involve replacing older diesel vehicles or equipment with new ones that produce far less pollution. The replacements can use any fuel, including diesel, propane, natural gas, and electricity. Replacements allowed under the settlement are: · · · · · · · ·

Heavy-duty and medium-duty trucks School, transit, and shuttle buses Switcher locomotives Ferry, tug, and tow boats Shore power for ocean-going vessels Airport ground support equipment Forklifts and port cargo-handling equipment Construction equipment (by supplementing the existing Diesel Emission Reduction Act)

Additionally, up to 15% of each state’s funds may be used for electric vehicle charging infrastructure. All funds must be spent or committed to approved projects by October 2, 2027.

Minnesota’s plan States must develop plans for using their settlement funds and submit them for approval to the Trustee managing the funds nationally. Minnesota’s plan involves three phases of funding for five grant programs, over 10 years. Once it’s approved, the MPCA can begin requesting proposals for projects and issuing grants.

Goals The MPCA will use the state’s settlement funds to support a healthy environment for all Minnesotans and achieve significant emissions reductions across the state, especially in those communities most impacted by vehicle pollution. Because 60% of the violating vehicles were registered in the Twin Cities metropolitan area and 40% were registered in Greater Minnesota, the funds will be targeted using the same 60%-40% ratio. We will invest in communities disproportionately impacted by air pollution, both in the Twin Cities area and in Greater Minnesota. In developing the grant programs and selecting projects for funding, we will balance project costs with emissions reductions and other benefits.

Executive summary: Volkswagen Settlement Beneficiary Mitigation Plan • April 2018

105

Minnesota Pollution Control Agency

aq-mvp2-32d

Three phases Minnesota’s plan is structured in three phases, so the MPCA can seek additional input and make changes as needed along the way. This plan addresses Phase 1 (2018-2019) only. The three phases are: · · ·

Phase 1: $11.75 million (25% of overall funds) – 2018-2019 Phase 2: $23.5 million (50%) – 2020-2023 Phase 3: $11.75 million (25%) – 2024-2027

Five grant programs in Phase 1 (2018-2019) Minnesota will manage the VW settlement funds through five grant programs that will allow different vehicle and equipment types to be compared with each other through the grant process. With these investments in 2018 and 2019, the MPCA expects to reduce approximately 1,152-1,228 tons of nitrogen oxides, 41-60 tons of fine particles, and 21,18834,751 tons of greenhouse gases. Table: Summary of grant programs, 2018-2019 (phase 1) MN grant categories (2018-2019) School bus replacement program Clean heavy-duty on-road vehicles program

Settlement category

Eligible fuels

2018-2019 grants (Phase 1) Targeted dollar Targeted percent* amount

School buses

All (diesel, propane, natural gas, electric)

20%

$2,350,000

Transit buses, class 4-8 trucks

All (diesel, propane, natural gas, electric)

35%

$4,112,500

Switcher locomotives, ferries, tugs, forklifts, Clean heavy-duty port cargo handling All (diesel, propane, off-road equipment equipment, ocean-going 15% natural gas, electric) program vessel shore power, Diesel Emission Reduction Act (DERA) School buses, transit Heavy-duty electric buses, trucks, airport Electric 15% vehicle program ground support equipment Electric vehicle charging Zero-emission vehicle Not applicable 15% stations infrastructure Total: *Percentage of available settlement funds targeted at these activities for 2018-2019

$1,762,500

$1,762,500 $1,762,500 $11,750,000

Outreach and input The MPCA is committed to developing a program that benefits all Minnesotans and reflects the needs and desires of people across the state. The agency sought input statewide for more than a year. Before drafting the state plan, we held nine public meetings and four stakeholder meetings, kept interested people up to date with informational email bulletins, received nearly 300 written comments and over 800 responses to online surveys, sought input from the MPCA’s Environmental Justice Advisory Group, and posted information and data on a website. We released a draft of the state plan and gave Minnesotans the opportunity to tell us if we did a good job reflecting their input. We held seven public meetings, one webinar meeting, and one stakeholder meeting, and received over 580 written comments. All the information gathered during this process is available at www.pca.state.mn.us/vw. We also encourage anyone interested in applying for funds in the future, to go to our website and sign up to receive our emails. Executive summary: Volkswagen Settlement Beneficiary Mitigation Plan • April 2018

106

Minnesota Pollution Control Agency

2019 GOVERNANCE AGENDA Tuesday, January 8:  Annual Review of Committee Charters

Tuesday, February 12:  Review Strategic Plan and 2018 Annual Business Plan results

Tuesday, March 12:  Oath of Office  Election of Officers

Tuesday, April 9:  Annual Commissioner Orientation and Review Governance Responsibilities and Role  Audit of 2018 Financial Report  Financial Reserves Allocations  Review 2018 Performance Metrics

Tuesday, May 14:  Annual General Manager Performance Evaluation and Goal Setting

Tuesday, June 11: 

Tuesday, July 12:  Annual Commission Performance Evaluation  Review and Update Strategic Plan

Tuesday, August 13:  Annual Business Plan – Review Proposed 2020 Travel, Training, Dues, Subscriptions, and Fees Budget

Tuesday, September 10:  Annual Business Plan – Review Proposed 2020 Capital Projects Budget

Tuesday, October 8:  Annual Business Plan – Review Proposed 2020 Expenses Budget

Tuesday, November 12:  Annual Business Plan - Review Proposed 2020 Rates and Other Revenue  Adopt 2020 Fee Schedule  2020 Stakeholder Communication Plan

Tuesday, December 10:  Adopt 2020 Official Depository, Newspaper, and Regular Meeting Schedule  Adopt 2020 Governance Agenda  Adopt 2020 Annual Business Plan

107