2.2. ERMUSR 10-8-2019 - Laserfiche WebLink

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Chair Dietz stated that we should have the opportunity to talk more about the PILOT next month and directed staff to add it to the October 8 agenda. He encouraged the Commissioners to reflect on what had been discussed today, and come prepared to make a decision at the next meeting. 5.0 BUSINESS ACTION 5.1 Financial Report—July 2019 Ms. Slominski presented the July 2019 financial report as outlined in her memo. Chair Dietz had a few questions. Staff responded. There was discussion on the Electric Department financials relating to the monthly net loss, and the actual year-to-date (YTD) net profit falling short of the budgeted YTD net profit. There was also discussion on power cost adjustments (PCA's). Staff noted that ERMU has not passed along any PCA's and that we are currently reflecting a credit balance. Moved by Commissioner Westgaard and seconded by Commissioner Stewart to receive the July 2019 Financial Report. Motion carried 5-0. 5.2 2020 Annual Business Plan: 20 Year Capital Projections, Capital Projects and Equipment Purchases, and Conservation Improvement Program The preliminary 2020 Capital Projections, Capital Projects and Equipment Purchases, and Conservation Improvement Program were presented. Ms. Slominski noted that per Commission request, the timeline projections have been increased to include 20 years. Electric Department Capital Budget—Mr. Fuchs walked through the capital budget and elaborated on each of the projects. Notable items for 2020 are preparations to facilitate the future construction of a new field services facility (relocation of power plant substation, feeders, and forced sewer main), electric service territory transfer costs, replacing bucket truck#21, and Landfill Gas engine rebuilds. The Commission had a few questions. Staff responded. The Electric Department 20 Year Capital Projections were also presented. Commissioner Stewart commented that she liked the new 20 year forecast and suggested that the cost of the projects be increased by a certain percentage each year. Water Department Capital Budget—The capital budget was presented. Notable items for 2020 are the Gary Street Water Tower internal paint and external wash, and SCADA equipment upgrades. The Water Department 20 Year Capital Projections was also presented. There was discussion on how the dollar amounts were arrived at for the Highway 169 Redefine line item included in both the water and electric capital projections. Administration and Technical Services Capital Budgets—The capital budgets were presented. Notable items for 2020 are IT system improvements for Administration; and for Technical Elk River Municipal Utilities Commission Meeting Minutes September 10, 2019 Page 5 37