05-10-2007 ERMU MIN - Laserfiche WebLink

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Page 2 Regular meeting of the Elk River Municipal Utilities Corrunission May 10, 2007 Theresa Slominski updated the commission on the check processing system. We now have the capability to schedule automatic withdrawals per payment arrangement, and will be testing a payment over the phone system. Theresa also informed of a way to verify social security numbers as to if they are legit or false. James Tralle asked if we required a credit history, staff responded no, not at this time. Commission was informed that the General Manager would be late because of testifying in a court case the utility is involved in. It was requested 5.2 and 5.3 of the Agenda be put on hold until the General Manager arrived, commission agreed. 6.1 Review Urge Test Results Elk River Municipal Utilities operates and maintains four diesel generation units at our power plant. These units are contracted to Great River Energy through a Power Transaction Agreement at the current price of $2.75/kw/month based on the proven capacity from the annual URGE test. The current contract expired October 31, 2003, and is extended on an "evergreen" basis. The URGE test performed in 2007 was reviewed. The URGE tests have steadily increased the past few years due to more maintenance and better training. Staff consisting of Michael Price, Adam Freiberg, and Steve Zeimer did a great job performing this URGE test, and maintaining the engines. The capacity results from this test will result in $349,008 of annual payments from Great River Energy. 6.2 Review & Consider Bid Tabulation for Area 16 Cable Replacement The Elk River Municipal Utilities and Connexus Energy have a temtory acquisition agreement. This agreement allows Elk River Municipal Utilities to acquire territory in the city boundaries of Elk River and serve the electric load instead of Connexus Energy. Often these areas contain an old or obsolete electrical system that needs to be rebuilt. This is the case for Area 16. Plans and specifications were secured and bids were received on April 25, 2007. Staff recommends awarding Area 16 Rebuild to MP NexLevel, LLC, the lowest responsive bidder. James Tralle moved to award Area 16 Rebuild to MP NexLevel, LLC the lowest responsive bidder. Jerry Gumphrey seconded the motion. Motion carved 3-0. 6.3 Review Dental Insurance Bids Currently, our Dental, Life, and Long Term Disability (LTD) insurance is all with Principal Financial Group. Elk River Municipal Utilities switched from Delta Dental to Principal Dental in 2003, and combined it with the other products of Life and LTD insurance already placed with Principal. This year, bids were obtained from nine additional carriers. Assurant came back with the best proposal, and it was reviewed with the insurance task group. It represents a savings of $11,500 (split 75%/25% with the employees for the dental only), with no change in benefits provided, and maintaining the same dental network. There is one change that was discussed in the task group that is related to the LTD insurance. We have the option of recognizing a "taxable bonus" on this insurance with each pay period, which