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Elk River Municipal Utilities Commission Meeting Minutes <br />May 13, 2025 <br />Page 4 <br /> <br />5.2 Advanced Metering Infrastructure Update <br /> <br />Mr. Tietz updated the Commission on meter replacement progress, noting that the sub- <br />contractor Allegiant Utilities Services completed their work on the project and that the <br />remining work would be performed by ERMU staff. <br /> <br />In response to a question from the Commission, Mr. Tietz estimated that there were <br />approximately 358 water meters (285 residential, 73 commercial) remaining to be replaced, <br />adding that staff has had varying customer responsiveness in their outreach efforts. <br /> <br />There was discussion on the opt-out process, the associated fee, and the requirement for a <br />manual meter read. Staff confirmed that even when customers opt out of the remote meter <br />reading function, they will still need their meter replaced. Staff confirmed that an opt-out <br />letter detailing responsibilities and fee conditions will be finalized for customer distribution. <br />Staff stated they would have legal counsel review the opt-out letter. <br /> <br /> Mr. Tietz shared that with the project nearing completion all future updates will appear <br />within his staff update. <br /> <br />5.3 ERMU Power Plant Update <br /> <br />Mr. Hanson presented the update and recapped the previous discussion at the March <br />2025 meeting with the architect LEO A DALY, stating cost estimates ranged between $5.5 <br />and $8.5 million to turn the plant into a history education center. He added that the <br />Commission considered that amount too high even with the potential funding offsets <br />presented. At the meeting staff recommended pausing history center design and funding <br />efforts to focus on asset disposition, in particular, future plans for the external diesel fuel <br />tanks, the recloser and transformer, and three of the four engines in case one could be <br />used for a future history center. <br /> <br />Mr. Hanson explained that municipal utilities in Glencoe and Janesville Minnesota have <br />expressed interest in the external diesel tanks. Due to the cost to transport and <br />rehabilitate the tanks for the buyer, staff was proposing a fee of approximately $500 for <br />each of the two tanks and approximately $0.10/gallon, or $1,000, for the diesel within <br />them. He added that ERMU’s power provider, Minnesota Municipal Power Agency, is <br />interested in purchasing the plant’s transformer and recloser with that equipment to be <br />sold at its net book value. Plans for sale of the engines are still in development. <br /> <br />Legal counsel advised staff on the terms of these sales, informing them that based on the <br />asset value and because they were transactions between municipalities, they met <br />regulations for the sale of public property. <br /> <br />Staff explained there are minor ongoing costs in maintaining the temperature of the <br />building to ensure plumbing and engine lines do not freeze. <br />41