02-12-2019 ERMU MIN - Laserfiche WebLink

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At the last Commission meeting Chair Dietz had asked for a further breakdown of the Electric Maintenance Expenses. Chair Dietz distributed a handout of the information that finance department had compiled.There was discussion. Chair Dietz stated that he wanted to have a discussion on ERMU's net margins. He had asked Ms. Slominski to compile some statistics, going back 15 years, on ERMU's margins. A handout of the data was distributed. Chair Dietz shared his concerns about what the public perception may be with us having such a large net margin. Mr. Adams stated that this is exactly the conversation that we would like to have in the Strategic Plan and 2018 Annual Business Plan section of the commission meeting, and asked if we could table this discussion until that section of the meeting.The commission concurred. Moved by Commissioner Westgaard and seconded by Commissioner Stewart to receive and file the December 2018 Financial Report. Motion carried 4-0. 5.2 Bids for Electric Cable The underground electric cable required for the 2019 capital construction projects and maintenance was determined and had been noticed for formal bids.The bid opening was on February 11, 2019 at 9:00 a.m.The bid tabulation was distributed at the meeting. Mr. Fuchs went over the bid tabulation and explained the difference between firm and escalated pricing. He also explained the benefit of having reel disposal. Taking into consideration price, product, and availability, staff recommended awarding the bid to Border States, the lowest responsible bidder with firm pricing of$350,182.16.There was discussion on the advantages of firm pricing versus escalated.The commission had a few questions. Staff responded. Moved by Commissioner Westgaard and seconded by Commissioner Stewart to award the electric cable bid to Border States with firm pricing of$350,182.16. Motion carried 4-0. 5.3 2018 Fourth Quarter Delinquent Items Ms. Slominski presented the delinquent items for the fourth quarter which included a delinquent amounts listing report totaling $10,292.97 for all services. She also presented the delinquent items comparisons for 2017/2018 and provided a high level overview of the year end totals. Ms. Slominski pointed out that the amount for the fourth quarter write-offs of $3,206.46 included $2,919.87 in revenue recapture items that had met the six year maximum amount of time they could be collected on. Ms. Slominski shared that our totals for the year for collections and write-offs are well below the national average, at .035%. Moved by Commissioner Stewart and seconded by Commissioner Westgaard to approve the 2018 Fourth Quarter Delinquent Items. Motion carried 4-0. Elk River Municipal Utilities Commission Meeting Minutes February 12, 2019 Page 3