2.2. ERMUSR 12-13-2016 - Laserfiche WebLink

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5.3 2016 Third Quarter Delinquent Items Theresa Slominski presented the delinquent items for the third quarter which included a delinquent amounts listing report. Amounts submitted for the quarter to just Collection Agencies was $3,819.34, and the amount submitted to Revenue Recapture and also submitted to the Collection Agencies was $10,896.75; for a combined third quarter total of $14,716.09. Theresa also presented a color-coded recap comparison with last year, identifying the various categories and running totals. It was noted that according to APPA's most recent published standard ratios, the industry standard for collections and write-offs are between .18% and .37%. Our totals, excluding Revenue Recapture, are well below the national average at .067%year to date. Al Nadeau made a motion to approve the Third Quarter Delinquent Amounts Listing. Daryl Thompson seconded the motion. Motion carried 3-0. 5.4 Itron MV90 Master Sales Agreement Mike O'Neill shared that ERMU needs to upgrade the Itron software that the metering department uses to upload and analyze metering data as the current software is no longer supported. Itron,the software provider for the new software program MV90, has a Master Sales agreement that they require all who purchase their software to sign. This brings with it limitations in liability and restrictions in information protection. Staff noted that ERMU has close to 16,000 Itron meters currently installed in our distribution system and that from a financial and operational perspective, it would not be practical to replace all of the Itron meters on the system with meters from a different manufacturer to create an opportunity to select different software. With ERMU's legal counsel, Itron and ERMU have made modifications to the Master Sales agreement. However, there are still issues with the agreement from ERMU's legal counsel's perspective. As there are still some legal risks existing in the agreement, staff and legal counsel agreed that it should be clearly communicated to the Commission prior to execution of the contract. Peter Beck, ERMU's legal counsel, participated via conference call to walk through the agreement and voice the concerns he had. Peter shared that after consulting with Joel Jamnik, Attorney with Campbell Knutson, they both agreed that this is not a contract we would sign if we had another option; however the issues they have with it are not such that they're going to tell the Board that they can't sign the agreement. Peter shared some of the legal risks with the terms of the agreement, and gave examples of the things we would normally not agree to. There was discussion. Troy Adams wanted it stated for the record that we've been going back and forth with the attorneys on the terms of this agreement for the better part of a year, and that we've now come to Itron's stopping point. Daryl Thompson made a motion to approve the execution of the Itron MV90 Master Sales Agreement, Indirect Sales Agreement, and Maintenance Agreement. Al Nadeau Page 6 Special Meeting of the Elk River Municipal Utilities Commission November 15,2016 25