05-13-2025 ERMU MIN - Laserfiche WebLink

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