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2015 Electric Service Territory Transfer Agreement payment schedule.This option would <br /> release PILOT from recent electric service territory transfers significantly sooner than <br /> agreed upon. <br /> Mr. Adams presented his report as outlined in his memo. He concluded that staff's <br /> recommendation is that we do increase the PILOT transfer.The Commission was also in <br /> support of an increase, to be effective January 1, 2020.There was discussion on how to <br /> amend the PILOT policy to reflect the change.There was consensus to strike "which are <br /> not subject to loss of revenue payment resulting from the March 20, 2015, electric service <br /> territory transfer agreement with Connexus Energy" in section 2.0. <br /> Moved by Commissioner Bell and seconded by Commissioner Nadeau to amend policy <br /> P.17—Payment in Lieu of Taxes (PILOT)and Other Donations to the City of Elk River, <br /> section 2.0,to read:The PILOT transfer from Elk River Municipal Utilities to the City of <br /> Elk River shall be four percent(4%)of the revenues generated by ERMU's electric <br /> customers within the corporate boundaries of the City of Elk River. (The amendment to <br /> the policy is effective January 1, 2019.) Motion carried 5-0. <br /> 4.3 Employee Recognition Workgroup Update <br /> Ms. Nelson presented the Employee Recognition Workgroup (ERW) update. Ms. Nelson <br /> provided details on the proposed Years of Service Award Plan. She shared that the <br /> proposed changes to the employee years of service awards would result in a $400 impact <br /> to the 2020 budget. <br /> Commissioner Bell asked for further clarification on what type of refreshments would be <br /> provided for the one year anniversary and suggested that it be a little more specific for <br /> budgeting purposes. <br /> Mr. Adams explained that what the ERW is looking for is Commission support of the <br /> concept of the program. If the Commission supports the proposed Years of Service <br /> Program,the Public Purchase Expenditure Policy will be updated to reflect the change and <br /> brought back for Commission approval. For the change to the policy, Mr. Adams <br /> suggested that it be a higher level overview of the program without the specifics of the <br /> gifts or dollar amounts associated with it. He explained that on an annual basis during the <br /> budgeting process, the Workgroup will review all upcoming anniversaries and the dollar <br /> amounts used for each anniversary to determine the budgetary impact.This amount will <br /> be presented as a line item within the expense budget for commission review. <br /> Commissioner Stewart inquired if the$400 expense that was presented for the 2020 <br /> budget included the tax gross-up. Staff stated it did not. It was noted that the gross-up <br /> should be included in the proposed expense.After discussion,the Commission had <br /> consensus to support the concept of the Years of Service Award Plan and directed staff to <br /> move forward with language changes to the policy. <br /> Elk River Municipal Utilities Commission Meeting Minutes <br /> October 8, 2019 <br /> Page 4 <br />