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2.1 December Check Register <br /> 2.2 December 8,2015 Previous Meeting Minutes <br /> 2.3 Financial Statements <br /> 2.4 2016 Tariffs <br /> 2.5 ERMU-GRE Capacity/Energy Termination Notice for the Diesel Power Plant <br /> Al Nadeau seconded the motion. Motion carried 3-0. <br /> 3.0 OPEN FORUM <br /> No one appeared for open forum. <br /> 4.0 OLD BUSINESS <br /> 4.1 Security Deposit Policy <br /> A number of items regarding the security deposit policy were discussed at the November and <br /> December commission meetings. Per Commission direction, staff has identified several options <br /> to strengthen procedures and minimize risk. Tom Sagstetter shared that based on discussions <br /> and research of other local utilities in the area, staff has drafted a revised commercial service <br /> agreement and a new commercial application form. The use of these two documents will allow <br /> ERMU to better assess credit risk,establish more accurate security deposits,and collect the <br /> security deposits upfront prior to providing service. Tom explained that the next step will be to <br /> finalize the commercial service agreement and application,establish the risk assessment matrix <br /> and revise the Security Deposit Policy. In order to move forward,staff is seeking Commission <br /> approval of three items: all commercial customers(demand and non-demand)will be required to <br /> pre-pay the applicable security deposit as outlined in the security deposit policy,to be subject to <br /> a credit check as part of calculating the security deposit,and to pay a new customer application <br /> fee of$20.00 per account at the time the security deposit is paid. <br /> Tom elaborated on how the deposit would be based on the risk assessment matrix,requiring <br /> commercial customers to pay a deposit equal to one to three months of their highest monthly <br /> bill. John Dietz questioned the wording in the current policy that states"ERMU may,in its <br /> discretion,waive or reduce the required deposit for commercial and industrial customers". His <br /> concern was that if our intent is to always charge a minimum of one month's deposit that <br /> including that clause in the new policy may cause problems if a customer felt that ERMU had <br /> the power to waive their deposit and we didn't. Troy Adams added that we definitely want to <br /> have the flexibility to waive the deposit,especially for large demand customers and government <br /> agencies. Staff will look at re-wording it or setting certain parameters in the risk assessment <br /> matrix to address that issue. There was further discussion on the proposed commercial credit <br /> check and$20.00 new application fee. <br /> Page 2 <br /> Regular meeting of the Elk River Municipal Utilities Commission <br /> January 12,2016 <br />