2.2 ERMUSR 05-11-2021 - Laserfiche WebLink

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Elk River Municipal Utilities Commission Meeting Minutes April 13, 2021 Page 6 Services Facility Expansion project. Commissioner Bell stated that he preferred to pursue the alternates now to create the best results and while there are already contractors on site. Mr. Bell asked if authority to award those alternates could be given to staff. Attorney Beck said awarding the alternates would need approval from the Commission but that a blanket approval for future decisions could be given once the higher cost site work is complete. Ms. Slominski pointed out that the site work will be some of the early steps in the process so there would be an opportunity to review options at a later date. There was further discussion. Chair Dietz and Commissioner Stewart had some clarification questions. Staff responded. Moved by Commissioner Stewart and seconded by Commissioner Nadeau to approve the unrestricted reserve balance above the target level for the Electric Utility fund be designated for electric service territory transfer costs, capital infrastructure costs, and the Energy Adjustment Clause to be capped at $500,000. Motion carried 5-0. Moved by Commissioner Nadeau and seconded by Commissioner Westgaard to approve the unrestricted reserve balance above the target level for the Water Utility fund be designated for future capital infrastructure costs. Motion carried 5-0. 4.3 2020 Utilities Performance Incentive Compensation Distribution In her presentation, Ms. Karpinski noted that staff had met all the metrics for the incentive compensation program except for two, Water Loss and Employee Turnover. Per the policy, this warrants a multiplier of 85% and qualifying employees would be eligible for a 1.7% distribution. Mr. Ninow provided an explanation for the water loss issue in response to Chair Dietz’s question. Mr. Ninow noted there was a required flushing of Well #5 to remove air from the system in the spring and a water main break in August that contributed to the loss. Moved by Commissioner Bell and seconded by Commissioner Stewart to award the Performance Metrics and Incentive Compensation Distribution of 1.7% to qualifying employees per the terms of the policy. Motion carried 5-0. 5.0 BUSINESS ACTION 5.1 Financial Report – February 2021 Ms. Karpinski presented the Financial Report for February 2021. Chair Dietz had a clarification question. Staff responded. 49