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Elk River Municipal Utilities Commission Meeting Minutes <br />November 12, 2025 <br />Page 6 <br /> <br />Commissioner Stewart asked for clarification on which rate applies when a project begins <br />in one year but concludes in the next. <br /> <br />Ms. Youngs explained that the applicable rate depends on when payment is made. <br />Payments made in 2025 would follow the 2025 rates, while payments made in the new <br />year would follow the 2026 rates. <br /> <br />Moved by Commissioner Westgaard and seconded by Commissioner Stewart to approve <br />the 2026 Utilities Fee Schedule for Adoption into Ordinance by the City Council. Motion <br />carried 5-0. <br /> <br />5.08 Health Insurance Update <br /> <br />Mr. Hanson presented the Health Insurance Update noting that staff is recommending <br />changing from the current carrier to Medica while maintaining the company’s 85% <br />contribution to the insurance premium and the 85% contribution to health savings <br />accounts. <br /> <br />Moved by Commissioner Zerwas and seconded by Commissioner Westgaard to approve <br />the 2026 ERMU health insurance plan with Medica as well as 85% premium and health <br />savings account contribution amounts from the employer. Motion carried 5-0. <br /> <br />5.09 Wage & Benefits Committee Proposed 2026 Adjustments <br /> <br />Mr. Hanson provided an update from the October 27 Wage & Benefits Committee <br />meeting, as reflected in the proposed 2026 adjustments outlined in his memo. <br /> <br />Staff requested commission approval of a wage adjustment range of 3.34% to 3.41%. If <br />the metro average falls outside this range after the remaining utility reports, staff will <br />return to the Commission with a revised recommendation. <br /> <br />With only six of the seven metro utilities reporting, the Commission was not ready to <br />approve the cost-of-living wage adjustment and asked to revisit the item in December. <br /> <br />Mr. Hanson noted that he will add this to the December agenda and, in the meantime, <br />will use the midpoint of the range for budgeting purposes. <br /> <br />5.10 Advanced Metering Infrastructure Update <br /> <br />Mr. Hanson provided an AMI update and shared that 100% of active residential water <br />meters have been installed. He commended the water, customer service, and <br />communications departments for their outstanding efforts. <br /> <br />34