3.2 ERMU MINUTES 11-17-2009 - Laserfiche WebLink

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Page 4 Regular meeting of the Elk River Municipal Utilities Commission October 13, 2009 5.1 Review and Consider MMUA Safety Management Program ERMU utilizes MMUA to provide the safety management program. Discussion followed regarding the program. Troy Adams asked for authorization to execute the agreement with MMUA. Jerry Gumphrey moved to approve the contract with MMUA Safety Management Program. Daryl Thompson seconded the motion. Motion carried 3-0. 5.2 Review and Consider 2010 Expense Budget Troy Adams reviewed the 2010 Expense Budget. Terry Maurer spoke of the need to address the short fall in the water department budget. Discussion followed on ways to increase funds. John Dietz directed Theresa Slominski to check on the 75/25 account split for electric and water shared fees to make sure they are being properly split and to report back to the Commission with her findings. Terry Maurer said he would like to analyze water services, rates, and fees. Peter Beck agreed with a need for a WAC fee increase. Daryl Thompson questioned the rate comparison with surrounding Cities. David Berg responded. Lori Johnson informed Commission the Economic Development Department is doing a survey of SAC and WAC fees and should have the results in a week. John Dietz directed staff to investigate and bring back to the Commission. 5.3 Review and Consider 2010 Conservation Improvement Program (CIP) Budget The State of Minnesota has mandated a change in CII' spending in 2010 that now requires there to be 1.5% energy reduction instead of spending 1.5% of revenue on energy reduction. Discussion followed regarding the steps being taken to achieve this requirement. This was informative only, no action was taken. 6.1 Staff Updates Troy Adams informed the Commission of a recent quote request for underground frost trenching during the winter months and Midwest Diversified Utilities was awarded the bid. Sherburne County is now included in the counties that can join in the State bid for fuel. The City of Elk River has asked ERMU if they would like to join in with them. The savings is substantial and would be very beneficial to ERMU. Terry Maurer said the City is buying in for 75% of their yearly use and recommends ERMU do the same. Consensus of Commission was to buy in with the City of Elk River on the state bid for fuel. David Berg reported on a hydrant recall that involves about 400 of ERMU's hydrants. The problem is with the grease used in the hydrants in 1998. Waterous is going to pay $40 per hydrant to fix the problem. ERMU staff is going to repair 50 hydrants, then will check on the cost to see if it is beneficial to repair in house or contract out and have Waterous pay them directly.