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judged that ERMUor of good financial health. <br />Commissioner Stewart had questions for ERMU staff on the unedited portion of the audit <br />regarding electric line losses and water customer growth. Staff responded. <br /> <br />Moved by Commissioner Stewart and seconded by Commissioner Westgaard to receive <br />and file the Financial Audit for the year ending December 31, 2019. Motion carried 5-0. <br /> <br />4.2 2019 Year End Reserve Balance <br /> <br />Ms. Karpinski presented the year-end electric reserve balance and calculations. Staff <br />recommended that the unrestricted balance above the target level for the Electric Utility <br />fund be designated for electric service territory costs, future capital infrastructure costs, <br />and the energy adjustment clause to be capped at $500,000. Chair Dietz had questions on <br />terminology and the difference between restricted and unrestricted reserve amounts. <br />Staff responded. <br />Ms. Karpinski presented the year-end water reserve balance and calculations. Staff <br />recommended that the unrestricted balance above the target level for the Water Utility <br />fund be designated for future capital infrastructure costs. <br />Moved by Commissioner Stewart and seconded by Commissioner Bell that $500,000 of <br />the unrestricted reserve balance for the Electric Utility fund be designated for the <br />Energy Adjustment Clause (EAC), and the remaining amount be designated towards <br />electric service territory costs and future capital infrastructure costs; and the <br />unrestricted reserve balance for the Water Utility fund be designated for future capital <br />infrastructure costs. Motion carried 5-0. <br /> <br /> <br /> <br />4.3 2019 Utilities Performance Incentive Compensation Distribution <br /> <br /> Ms. Slominski presented the 2019 Utilities Performance Metrics and Incentive <br />Compensation (UPMIC) score card on which the employees had successfully achieved all <br />the company performance metrics targets except for two: The Water Loss and the <br />Employee Turnover metrics. She shared that per the policy, qualifying employees would <br />be eligible for a 1.70% distribution. Chair Dietz had questions about whether the <br />distribution factored in gross wages and overtime, staff responded that it did. Chair Dietz <br />asked Mr. Ninow about water loss exceeding the 12% threshold. Staff responded. <br /> <br /> Moved by Commissioner Nadeau and seconded by Commissioner Westgaard to award <br />the Utilities Performance Metrics Incentive Compensation distribution of 1.70% to <br />qualifying employees per the terms of the policy. Motion carried 5-0. <br /> <br />5.0 BUSINESS ACTION <br /> <br /> <br /> <br />Elk River Municipal Utilities Commission Meeting Minutes <br />April 14, 2020 <br />Page 4 <br /> <br />31 <br />