10-11-2005 ERMU MIN - Laserfiche WebLink

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Page 2 Regular meeting of the Elk River Municipal Utilities Commission October 11,2005 Glenn Sundeen informed the Commissioners on the status of the recent storm damage. Crews were out repairing damages and had power restored by early morning. Projects and rebuilds are proceeding as planned. James Tralle questioned how much area we service in Otsego. Staff responded that it is not a large area however most of the new commercial/industrial along Hwy 101 is our territory. David Berg reported that the 1St and 2nd Street water looping project is complete. Repairs are being done on valves and hydrants City wide. The security sales were up to 4 for the month along with sales calls. Theresa Slominski relayed to the Commissioners of the possibility of outsourcing the monthly bills. This would encompass the actual printing,stuffing,and mailing. John Dietz questioned what the employee would do with the extra time. Staff responded that they would be able to dedicate more time in proofing the bills prior to the printing process. More customers are signing up for the auto bill pay program. 5.2 Review Health Insurance Options Jodi Berg of David Martin Agency gave a presentation concerning health insurance. Discussion followed regarding the cost of the 2006 insurance and the percentage the Commissioners are comfortable with paying. An employee task force is looking into the options. Examples of insurance percentage ratios were presented. John Dietz felt the percentage ratio should be the same for single versus family coverage. Staff will present to the Commission at the next meeting,the options and percentage ratios to possibly continue with the current insurance program. 5.3 Review Electric Bond Options At the September 13,2005,Elk River Municipal Utilities Commission meeting,we discussed options for our upcoming electric bond issue. Anthony Hedlof of MMUA and Kathleen Aho of Springsted were present to answer questions. It was asked what the impact on communities with outstanding loans would be if not all the monies were spent before the required time. Anthony Hedlof informed the Commission there would be no ramifications. Kathleen Aho reviewed a comparison of financial options for fixed versus variable rates. The actual rate is set at closing and can be fixed or variable. Lori Johnson and Kathleen Aho will develop cost comparisons of Bond Pool funding versus Conventional Bond funding. 5.4 Review Target Project Initially Target Data Center was adamant about having two independent sources of electrical feed to their facility. They were presented with the initial cost and projected billing for this service. Target ultimately decided they would only require one electrical feed. The electric service agreement with Target was reviewed.