10-09-2007 ERMU MIN - Laserfiche WebLink

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Page 3 Regular meeting of the Elk River Municipal Utilities Commssion October 9, 2007 "dual coverage" scenario. Jerry Gumphrey said he is aware of problems with the H.S.A. plan and does not recommend implementing it at this time. Commission reviewed the cost sharing of the 2008 insurance plan. The 2008 BCBS Aware Gold plan with the current 25%/75% split along with a 20%/80% split, as requested by Jerry Gumphrey, was reviewed. Jerry Gumphrey moved to approve the renewal of the BOBS Aware Gold insurance plan with the 20%/80% split. Jerry Takle agrees but would like to table the motion until James Tralle arrives. 6.1 Review & Consider Proposed Expense Budget The proposed 2008 electric and water expense budgets were reviewed. Water expense budget increase from last year is 6.8%. Electric expense budget increase from last year without power costs is 7.2%. The water connection fees remain unchanged, however the water usage for the 1 sc step is currently $1.40 and recommendation is to raise it to $1.50 along with the 2°d step from $3.25 to $3.50. The electric rate change will be determined upon Great River Energy's final rate change which is undetermined at this time. James Tralle arrived during the expense budget briefing. Consensus was to revisit 5.3 for final approval. 5.3 Review Health Insurance (Revisited) James Tralle was briefed on the discussion regarding insurance coverage. Jerry Gumphrey moved to approve the renewal of the BOBS Aware Gold insurance plan with the 20%/80% split. Jerry Takle seconded the motion. Motion carried 3-0. 6.2 Review Bid Tabulation for Co Rd 1 Feeder The 2007 electric budget contains a $305,000 item to start construction of a new feeder along County Road 1. This feeder will accomplish the dual purpose of looping the existing overhead feeder on County Road 33 and facilitating the territory acquisition Area 22 along County Road 1. Acquisition of Area 22 will take place in 2009 and is the last area to be acquired under our current agreement with Connexus Energy. The first phase of the project is an underground feeder on County Road 1 for County Road 33 south to 209`x' Avenue. Jerry Takle questioned the security of the material used for the project. Staffresponded the electrical cable is locked up at night. Further discussion followed with staff recommending award be given to Midwest Diversified Utilities, LLC, due to the lowest bidder having safety and installation quality issues in the past. Jerry Gumphrey moved to award the County Road 1 Electric Feeder project to Midwest Diversified Utilities, LLC, the lowest responsive qualified bidder. Jerry Trkle seconded the motion. Motion carried 3-0.