2.2 ERMUSR 11-10-2020 - Laserfiche WebLink

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Commissioner Stewart had a question on accounting for equipment that is being removed for the Highway 169 Redefine project prior to being fully depreciated. Staff responded that they would need to be able to identify the assets in order to accurately account for their removal. The previous system of accounting for assets was done by a third party and their records combine many of the work orders. Staff noted that moving asset accounting to National Information Solutions Cooperative has improved tracking. Chair Dietz had a question about the timeline of work to be done for the Highway 169 Redefine project. Staff Responded. Ms. Karpinski also noted next month’s business plan presentation will include a change in depreciation for the landfill gas plant which will be replacing three engines next year rather than this year. Chair Dietz asked about the timeline for replacing the engines in relationship with the length of ERMU’s contract with Waste Management. Mr. Sagstetter responded that the contract ends in October of 2022. Chair Dietz had questions on potential changes to the Conservation Improvement Program budget. Mr. Sagstetter responded. There was discussion about the incentives offered to commercial customers. 5.3 Wage & Benefit Committee Update Ms. Slominski presented her update and provided background on the request from some employees to provide an alternative health insurance plan with a higher deductible and lower monthly premiums. Ultimately the insurance broker informed Ms. Slominski that if ERMU entered the Small Group Market (SGM) it could reducecosts and premiumswith a higher deductible plan. Ms. Slominski also presented plan comparisonsand breakdowns of the potential savings for ERMU based on its percentage of contribution towards premiums and deductibles. Ms. Slominski requested that the Commission approve the option to fund 85% of the premium, and at least 85% of the deductible, allowing for $60,817 in savings for the company. Commissioner Stewart noted that this option would be beneficial for retaining current employees and recruiting new staff. Ms. Slominski noted that ERMU has not met its retention goal in multiple years. There was discussion. Chair Dietz presented a document with his proposed breakdown of the shared costs, showing ERMU keeping its premium coverage at 75% but increasing its coverage of the deductible by 5 percentage points to 80%. He shared his opinion that while the company should continue to analyze these percentages every year, staff’s recommendation was too large of an increase in one year. Ms. Slominski provided clarification to Chair Dietz on the net savings to employer that were being calculated in his proposal. There was discussion. Commissioner Stewart shared her appreciation for Chair Dietz preparing his proposal but supported staff’s recommendation. Elk River Municipal Utilities Commission Meeting Minutes October 13, 2020 Page 3 35