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Page 6 <br />Regular meeting of the Elk River Municipal Utilities Commission <br />August 12, 2008 <br />6.4 Review and Consider Shared Substation Agreement <br />The Otsego substation was constructed in 2006. This location is shared with Wright - <br />Hennepin Cooperative who also has a substation at this location. Due to operational and <br />maintenance issues, these substation transformers and other 69kv equipment are on occasion <br />taken out of service. In order to continue to serve the load we either must have distribution <br />feeder ties to another substation or have a shared substation agreement for emergency use. <br />The cost to build another feeder to Otsego would be approximately $350,000. Staff <br />recommends authorization to execute the Shared Emergency Substation Agreement between <br />Elk River Municipal Utilities and Wright -Hennepin Cooperative. <br />Jerry Takle moved to approve authorization to execute the Shared Emergency Substation <br />Agreement with Wright -Hennepin Cooperative. Jerry Gumphrey seconded the motion. <br />Motion carried 3-0. <br />Other Business <br />John Dietz reported on the findings from Abdo Eick and Meyers on the fraud investigation. <br />Although no criminal fraud was found, policies addressing the following should be drafted <br />and brought back to the Elk River Municipal Utilities Commission for approval no later than <br />December 31, 2008. They are as follows: <br />Sales and Trades of Elk River Municipal Utilities (ERMU) Vehicles and equipment <br />Employee Theft <br />Use of ERMU Supplies and Equipment <br />Work Order System <br />Inventory and Internal Control Systems <br />Segregation of Duties <br />Performance Reviews <br />Job Posting Procedures <br />Cell Phone and Internet Use <br />Until such policy is drafted and approved by the Commission, no employee or electric official <br />may purchase any ERMU equipment, vehicles, or supplies under any circumstances or be <br />allowed to purchase supplies through any vendor using ERMU's account; employees shall <br />reimburse ERMU for all personal use of ERMU's cell phones and long distance service. <br />Personal use of internet service during work hours is prohibited. No employee may take or <br />use any ERMU equipment or vehicles for personal use. Violation of any of these will be <br />grounds for immediate termination. Abdo Eick and Meyers could assist in drafting the above <br />policies. <br />Jerry Gumphrey moved to approve Abdo Eick and Meyers to assist in drafting the <br />aforementioned policies. John Dietz seconded the motion. Motion carried 3-0. <br />