05-10-2007 ERMU MIN - Laserfiche WebLink

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Page 3 Regular meeting of the Elk River Municipal Utilities Commission May 10, 2007 eliminates the payouts being taxed if one becomes disabled. The "bonus" amount is determined at $.72 for every $100 of payroll for the employee. It is included in the taxable calculation with each paycheck and reported on the W2's (very similar to the Group Term Life taxation). The task group felt this was a worthy option to incorporate for the $.O1 in premium increase to the employer, approximately $205 per year. Staff recommends the Assurant proposal for Life, LTD, and Dental insurances. Jerry Gumphrey moved to approve the 2007 Dental, Life, and LTD insurance to Assurant. James Tralle seconded the motion. Motion carried 3-0. Because of employees present it was consensus to visit 5.3 at this time. 5.3 Review Health Care Savings Plan At the last commission meeting, staff was asked to seek out alternatives to the HCSP presented, to see if there is a comparable product available that doesn't have mandatory participation as a requirement. Alternative products were reviewed. The two products that most closely resembled the HCSP were tied to a high deductible health insurance plan, and the Annuity option would not represent the same tax savings since withdrawals are taxable upon distribution, whereas the HCSP withdrawals are not taxable. Staff recommends adopting the HCSP as presented. Future changes to this plan would be revisited by staff: Jerry Gumphrey moved to adopt the HCSP plan. James Tralle seconded the motion. Motion carried 3-0. 6.5 Review 2006 Water Confidence Report The 1996 amendment to the safe drinking water act required all community water systems to deliver an annual water quality report to their customers. The utilities provide this information along with heightened awareness of the need to protect water resources. This water confidence report will be included in the May utility billing. David Berg said the utilities are very fortunate as our water quality is very good. At this time Jerry Gumphrey had to leave for another meeting and Bryan Adams amved. 5.2 Review & Consider Black Dirt Policy With summer approaching, water consumption will increase due to lawn sprinkling. The northwest area of the Twin Cities including Elk River, have very sandy soil making moisture retention for lawns very difficult. Many cities at the urging of the DNR are requiring 4" of black dirt under lawns as a strategy to increase moisture retention and thereby conserving water. The surrounding communities were surveyed and a majority of them do have a black dirt policy in place. The downside to a topsoil policy would be the increased initial cost by developer, contractor, or homeowner, and the enforcement issue. On the upside, the cities that have an ordinance indicate an approximate 10% savings in water usage. The details are still being worked on with the City so this topic will be revisited in June.