3.0 ERMUSR 06-08-2004 - Laserfiche WebLink

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Page 2 Regular meeting of the Elk River Municipal Utilities Commission May 11,2004 Patricia Hemza updated the Commission on how well the move to the new location went,and that the Audit was finished. James Tralle questioned the amount of walk-in customers. Just being at the new location for one week, staff responded it was too early to tell. To accommodate the auditor,the audit report was moved to the next agenda item. 6.1 Review and Consider 2003 Audit Steve McDonald of ABDO,EICK&MEYERS,LLP went through the audit results with the commission. He reported on the new GASB #34 government accounting process, and the resulting changes that affect the Utilities financials. In the Schedule of Findings report there was only one issue of concern and that was the collateral amount. Steve McDonald then discussed the electric rate structure and the addition of water mains constructed and paid for by developers that were not previously on the Utilities books. The yearly depreciation will be substantial because of this newly acquired accounting process. John Dietz asked if there were any concerns that they should be aware of. Steve responded that he has been auditing the Utilities for several years and did not see any alarming trend or notice any discrepancies. John Dietz moved to accept and file 2003 Elk River Municipal Utilities audit,James Tralle seconded the motion. Motion carried 3-0. 5.2 Review and Consider Employee Wage Request Bryan Adams indicated to the Commission the three issues to be resolved are, salary increase, percentage of employees contribution to health insurance and proposed crew rest provision. John Dietz commented on the Utilities wanting to be competitive with the local surrounding pay rates but then they should also compare the health insurance. He then states he was in favor of the 3.27%wage increase without the health insurance adjustment but that he was not in favor of the crew rest provision. Discussion followed regarding the need for crew rest provision. John Deitz asked what the cost per year for this new program would be and Bryan estimated it to be $2000 to$4000. James Tralle asked if this was a real safety issue with Bryan and Glenn both replying yes. James Tralle moved to analyze for 1 year the night call out work and respond to the issue next year. John Deitz seconded the motion. Motion carried 3-0. James Tralle moved to approve the 3.27%wage increase for all employees and no change in employee contribution to health insurance. John Dietz seconded the motion. Motion carried 3-0. Bryan Adams asked for an increase in consulting pay for Vance Vehringer. The commission was advised that he has been paid the same rate for 5 years. James Tralle moved to approve the pay increase to $35 per hour. John Dietz seconded the motion. Motion carried 3-0. 5.3 Review and Consider MMUA Bond Pool Bryan Adams told the commission that Princeton and Rochester have joined the bond pool. James Tralle was impressed with the presentation and discussion at the last commission meeting.