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Page 2 <br /> Regular meeting of the Elk River Municipal Utilities Commission <br /> October 10,2006 <br /> Theresa Slominski gave an update on the IRS issue. The recent Power Managers User <br /> Group(PMUG)conference was very informative. She gave a"heads up"that some new <br /> procedures and programs will be implemented to allow collection of social security numbers. <br /> A customer privacy policy and internal policy will be presented at the next meeting. James <br /> Tralle asked about the security measures that would be in place for the sensitive information. <br /> Staff responded it would be locked up and only available to employees that would be assigned <br /> to work with this new issue. Jerry Takle asked how the website is going and Theresa replied <br /> that she hopes it will be ready in a few weeks. <br /> 5.2 Update New Data Center Facility <br /> The discussions with United Health Group continue to move forward. The plan is to close <br /> on the property in January of 2007 and start construction in March of 2007 with completion <br /> planned for June of 2008. They will start taking power for testing in January 2008. The initial <br /> service agreement was reviewed along with the drawing and location of the new proposed <br /> feeder. Estimated cost of the new feeder is$950,000 and substation is estimated to cost <br /> $2,130,000. We are soliciting bids for the 69kv transformers needed for the new substation on <br /> Waco. <br /> 5.3 Review GRE Wholesale Electric Rate <br /> The recently completed electric retail rate study by R.W. Beck assumed a wholesale rate <br /> increase of 6.9%. In recent discussion with Connexus and GRE,the rate increase is more in <br /> the 4.9%range. Although the details of the increase are still unknown,this 2%difference in <br /> initial versus projected wholesale rate is approximately a$220,000 swing. In 2008 GRE is <br /> projected to simplify the rate structure by going back to one rate instead of a base and growth <br /> rate but will be using a Critical Peak pricing scheme. Discussion followed regarding the 2008 <br /> GRE proposed rate structure. <br /> 5.4 Review Proposed 2007 Health Insurance Costs <br /> Staff has met with Jodi Berge,our account executive with David Martin Agency,regarding <br /> Elk River Municipal Utilities 2007 health insurance rates. The renewal is a 7.4%increase for <br /> 2007. The insurance task group that met last year will meet again to review the insurance plans <br /> and discuss alternative plans for the future. <br /> 5.5 Review 2007 Expense Budget <br /> Our Conservation Improvement Program(CIP)is required to spend 1.5%of gross electric <br /> revenues or$232,500 for 2007. The proposed 2007 C1P budget totaling$451,760 of which <br /> GRE is contributing$351,750 and we are contributing$100,010 was reviewed. <br /> The proposed 2007 electric and water expense budgets were also reviewed. James Tralle <br /> questioned if neighboring communities were raising their rates like us. Bryan Adams replied <br /> that the Elk River's hikes may be slightly higher due to the growth of the community. <br /> 6.1 Review&Consider Bid Tabulation for Water Main Installation <br /> On October 9,2006,bids were received for the Guardian Angels Water Main Project. A <br /> drawing reflecting the scope of this project was reviewed. Guardian Angels will be <br /> reimbursing the Elk River Municipal Utilities for their portion of the costs. Staff recommends <br />