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Mr. Kerzman presented his update on the Field Services Facility Expansion Project Update. He <br /> notified the Commission that contractors would be installing curbing in the next week as well <br /> as a first layer of asphalt. <br /> Mr. Kerzman went on to share that the Minnesota Pollution Control Agency would be <br /> requiring additional investigation of the soil on the southside of the site. This would include <br /> five to six soil borings, costing in the range of$7,500- $15,000, of which 90%would be <br /> reimbursed by the Agency. <br /> Mr. Kerzman informed the Commission that roofing contractor had a couple projects <br /> canceled and now has extra insulation which could be used to fill the shortage of those <br /> materials for this project. The contractor has requested an addition to their contract price <br /> citing market increases. It was communicated to the contractor that because there has not <br /> been a change to the scope or schedule of the project from ERMU, we do not feel it is <br /> appropriate for us to bear those cost increases. At the time of the commission meeting the <br /> construction manager had not received a response from the contractor.There was discussion. <br /> Mr. Kerzman affirmed that the project is on schedule overall. <br /> 5.8 Health Insurance Update <br /> Ms. Slominski presented her memo on the Health Insurance Update, pointing out that the <br /> Commission was scheduled to review the percentage of deductible funding annually. The <br /> proposed contribution for 2022 would not change from the previous year as there had not <br /> been a change to the deductible amount. Commissioner Stewart expressed her belief that it <br /> was good to continue with last year's percentage for consistency and to aid in recruitment <br /> and retention. <br /> Moved by Commissioner Westgaard and seconded by Commissioner Stewart to approve <br /> a continued 85%employer contribution to HSA deductible funding amounts. Motion <br /> carried 4-0. Chair Dietz abstained. <br /> 5.9 Financial Reserves & Investment Committee Update <br /> Commissioner Westgaard provided an update from the Financial Reserves & Investment <br /> Committee. He shared that auditors had recommended that ERMU find ways to grow <br /> investments more aggressively. However, the recommendation from the Committee is no <br /> change to investments or strategy given the need to have funds available for restricted <br /> debt payments and upcoming major capital projects, in particular the field services facility <br /> expansion and Highway 169 Redefine. In addition to maintaining cash fluidity, certificates <br /> of deposit rates, which is what ERMU is invested in, are generally yielding just 0.5%. <br /> Commissioner Westgaard shared that unrestricted cash balances totaled $7.8 million for <br /> electric and $7 million for water, with a little over $4.5 million invested. <br /> Elk River Municipal Utilities Commission Meeting Minutes <br /> November 9, 2021 <br /> Page 6 <br /> 33 <br />