3.2 ERMU MINUTES 02-09-2010 - Laserfiche WebLink

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Page 2 Regular meeting of the Elk River Municipal Utilities Commission January 12, 2010 4.1 Review State Fuel Contract Pricine In October the City of Elk River submitted their numbers for the state diesel and gas bids. The numbers submitted included Elk River Municipal Utilities (ERMU) request for 3,600 gallons of diesel and 7,800 gallons of gas. This is approximately 75% of the 2010 projected usage for ERMU. This will require staff to fuel up at the City garage most of the time. The recent upgrade of the fuel system pumps at the City and Utilities location should make for easier tracking and billing. The contract price in 2010 for 87 Octane unleaded is $2.0989 and B5 diesel is $2.2354. Compared to current pricing at the pumps, this will result in an approximate $6,000 savings. 5.1 Review 2009 Electric Reliability Resort The Minnesota Energy, Security, and Reliability Act requires electric distribution utilities to file an annual outage report to their governing bodies, which in our case, is the ERMU commission. A spreadsheet of the 2009 outage history was reviewed. Animals and branches continue to cause the greatest number of outages, and underground faults were also a contributing factor. The single greatest incident impacting the report was a car accident where a vehicle hit a pole. The statistics from the report are very good compared to other utilities. 5.2 Review 2010 Tariffs At the December 15, 2009, Elk River Municipal Utilities Commission meeting, the 2010 budget was approved. This budget included a number of rate increases. The updated tariff sheets with changes were reviewed. 5.3 Review and Consider 4 I Quarter Write -Offs Fourth quarter write-offs were presented for review. Theresa Slominski discussed the list of write-offs and the need to clean up old accounts and move forward. John Dietz asked Peter Beck if he has completed revising the customer deposit policy, Peter responded he is still fine tuning it. Daryl Thompson moved to approve the fourth quarter write-offs totaling $159,429.60 as presented. Jerry Gumphrey seconded the motion. Motion carried 3-0. 6.1 Staff Updates Troy Adams shared a comment he received from the Fire Department giving thanks to the ERMU crews for their quick response when needed. Theresa Slominski responded to an inquiry about the auditors onsite for the preliminary audit. David Berg presented a memo regarding the Gary Street, Hillside, and Foster Tower lease. David said he has talked with Peter Beck and they both felt it was in the best interest to have KLM