05-10-2016 ERMU MIN - Laserfiche WebLink

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3.0 OPEN FORUM No one appeared for open forum. 4.0 OLD BUSINESS 4.1 Security Department Cost Analysis At the previous commission meeting,Commission directed staff to bring back three years of historical financial data for the security department; specifically a comparison between the security system monitoring margin and the security system total margin. For the security monitoring margins,Mike O'Neill presented the trends for the past three years plus 2016 projections.Next,Mike presented the total margins for the security department for the past three years plus 2016 projections. Mike pointed out that there were two significant adjustments that affected the numbers presented.The first occurred in 2014 when an error was discovered in the billing for the city of Elk River's wastewater lift station accounts.The error was corrected and an approximate$40,000 credit was made to the Wastewater Department, which resulted in the security department realizing a negative net margin for 2014.The second as previously discussed,was the change in billing software in 2015.This change resulted in the recognition of revenue relating to annually billed customers amortized over the entire year as opposed to the past method of recognizing that revenue in the month it was received;this has resulted in a$45,000 swing.John Dietz commented that a vast majority of our revenue from the security system is being generated from the monitoring. After discussion the Commission directed staff to come back next month with an evaluation of the security department. 4.2 Expansion of the Board of Commissioners Troy Adams provided an update on the expansion of the Board of Commissioners from 3 to 5. Troy shared that on March 16,the ERMU Commission expansion legislation passed through committee to the floor in both the House and the Senate. On April 26,the House bill passed on the floor with a vote of 124-1,and the Senate companion bill passed on the floor on May 4 with a vote of 61-0.The legislation is now on to the Governor.Troy shared that after the session is done, Senator Kiffmeyer and Representative Zerwas would both be willing to come to a city council meeting to recap and speak on the success of the two bills. Troy shared that in preparation for the expanded Board of Commissioners,staff will be working on completion of the governance manual,a meeting procedures guide,and updating the by- laws.There was further discussion.Peter Beck provided an update on participation in a meeting via Skype and the conditions that must be met to do so.He recommended including the specifics of interactive television meetings in the updated by-laws or the meeting procedure guide. Page 3 Regular Meeting of the Elk River Municipal Utilities Commission May 10,2016