11-09-2005 ERMU MIN - Laserfiche WebLink

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Page 2 Regular meeting of the Elk River Municipal Utilities Commission November 9,2005 5.2 Review& Consider Health Insurance Costs A task group of staff consisting of two linemen,one water operator,one office employee, Bryan Adams and Theresa Slominski reviewed the health insurance costs for 2006 and prepared a proposal. In developing this proposal,items taken into consideration were the presentation Jodi Berg from the David Martin Agency gave and the feedback from employees resulting from this presentation. Past insurance coverage included single or family plans. Staff has asked if there could be a single+one coverage option added. Consensus of employees is to keep the Aware Gold plan and pay more out of pocket and also pay a portion of the Principal Dental coverage. Previously the employees paid 23%of the health insurance cost,the new proposal is for the employee to pay 25%with the added option of single+one coverage. This proposal results in an insurance premium cost increase from previous year of approximately 28.4%to the employee and 15%to the employer. Motion by James Tralle to accept the current Aware Gold insurance plan with the employee paying 25%employee on health and dental insurance coverage. Jerry Takle seconded the motion. John Dietz abstained. Motion carried 2-1. 5.3 Review Cash Flow Projections Twice annually electric and water financial projections are updated to ensure the necessary financial resources for the future. The updates are done at year end during the budgeting process and after the audit. The electric and water projections reflecting the 2006 budget assumptions were reviewed. Bryan also presented some figures stating that although we have significant reserves,they are still not as high as they should be and we need to look at increasing reserves in the future. James Tralle questioned if there would be significant power cost changes. Bryan responded that power costs will continue to rise along with fuel cost adjustments which usually increase in the summer months. 5.4 Review&Consider 2006 Budget 2006 proposed budget was reviewed. Discussion followed regarding the increase in WAC fees,water and electric rates,department needs and projects. Electric and water rate increases will be considered at the December 2005 commission meeting. 5.5 Review& Consider Electrical Cable Bids On October 18,2005,bids were received for 1000 KCMIL aluminum EPR electrical conductor for the Target Data Center project. The initial Bid request was for 120,000 LF however Target Data Center's recent decision to require only one feeder has changed the amount needed to 70,000 LF instead. Staff recommends accepting the lowest responsive bid from Burmeister Electric Company. Motion by James Tralle to accept the lowest responsive bidder Burmeister Electric Company for 70,000 LF of 1000 KCMIL EPR electrical cable. John Dietz seconded the motion. Motion carried 3-0.