06-10-2008 ERMU MIN - Laserfiche WebLink

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Page 3 Regular meeting of the Elk River Municipal Utilities Commission June 10, 2008 utilized now is best for the Utility. He would like an unbiased perspective from an outside entity. Jerry Gumphrey suggested the company the City used. Lori Johnson stated she would get the information for the company used to Theresa. Consultant Vance Zehringer has been doing a wonderfiil job and is due for a wage increase. Also, McBrady Meter Reading is in the progress of negotiating a new contract and is not finalized for approval. John Dietz would like a formal request for these changes at the next scheduled Elk River Municipal Utilities Commission meeting. 5.3 Review Purchasing and Payment Limits At a previous Elk River Municipal Utilities meeting, John Dietz asked that this commission review policies that relate to purchasing and payment of items before the commission approves the check register. Discussion followed regarding the purchase order policy, payment policy and the competitive bid policy. John Dietz voiced his concern regarding the payment policy and why the commission does not approve the checks prior to them going out. Staff responded that the date when the invoices are due does not fit in the time frame of the commission meetings, thus not allowing them to be paid within the 30 days or in some cases receive a discount if paid within 10 days. Jerry Takle and Jerry Gumphrey said they did not have a problem with the current policy. Effective August 1, 2008, the competitive bid threshold will require formal bidding for purchases over $100,000 versus the current level of $50,000. The previous purchasing policy stated that anything over $100 needed apre-approved purchase order. Staff is asking to have that raised to $250. Jerry Takle moved to approve raising the purchasing policy pre-approval requirement to $250. Jerry Gumphrey seconded the motion. Motion carried 3-0. 5.4 Review Contributions to City Policy At the May 2008 Elk River Municipal Utilities Commission meeting, the contributions to the City of Elk River were discussed. It was reaffirmed that parks should be included in the donated portion of the contribution. Staff was directed to draft a policy reflecting actual contributions. The proposed City Contribution policy was reviewed. Included in the policy is the portion allotment for the MMUA safety program. John Dietz requested the wording in the contribution policy to be changed to being "reviewed every five years" instead of "time to time". John Dietz moved to approve the Contribution Policy to City of Elk River with noted change. Jerry Gumphrey seconded the motion. Motion carried 3-0.