08-12-2008 ERMU MIN - Laserfiche WebLink

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Page 6 Regular meeting of the Elk River Municipal Utilities Commission August 12,2008 6.4 Review and Consider Shared Substation Agreement The Otsego substation was constructed in 2006. This location is shared with Wright- Hennepin Cooperative who also has a substation at this location. Due to operational and maintenance issues,these substation transformers and other 69kv equipment are on occasion taken out of service. In order to continue to serve the load we either must have distribution feeder ties to another substation or have a shared substation agreement for emergency use. The cost to build another feeder to Otsego would be approximately$350,000. Staff recommends authorization to execute the Shared Emergency Substation Agreement between Elk River Municipal Utilities and Wright-Hennepin Cooperative. Jerry Takle moved to approve authorization to execute the Shared Emergency Substation Agreement with Wright-Hennepin Cooperative. Jerry Gumphrey seconded the motion. Motion carried 3-0. Other Business John Dietz reported on the findings from Abdo Eick and Meyers on the fraud investigation. Although no criminal fraud was found,policies addressing the following should be drafted and brought back to the Elk River Municipal Utilities Commission for approval no later than December 31,2008. They are as follows: Sales and Trades of Elk River Municipal Utilities(ERMU)Vehicles and equipment Employee Theft Use of ERMU Supplies and Equipment Work Order System Inventory and Internal Control Systems Segregation of Duties Performance Reviews Job Posting Procedures Cell Phone and Internet Use Until such policy is drafted and approved by the Commission,no employee or electric official may purchase any ERMU equipment,vehicles,or supplies under any circumstances or be allowed to purchase supplies through any vendor using ERMU's account; employees shall reimburse ERMU for all personal use of ERMU's cell phones and long distance service. Personal use of intemet service during work hours is prohibited. No employee may take or use any ERMU equipment or vehicles for personal use. Violation of any of these will be grounds for immediate termination. Abdo Eick and Meyers could assist in drafting the above policies. Jerry Gumphrey moved to approve Abdo Eick and Meyers to assist in drafting the aforementioned policies. John Dietz seconded the motion. Motion carried 3-0.