07-09-2007 ERMU MIN - Laserfiche WebLink

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Page 3 Regular meeting of the Elk River Municipal Utilities Commission July 9, 2007 the agreement to mirror the existing agreements. Project costs, funding, and paybacks were discussed. The issue will be to obtain a modified air permit from MPCA which could take over a year. James Tralle moved to proceed with the LFG expansion. Jerry Gumphrey seconded the motion. Motion carried 3-0. 5.5 Review Deposit Requirement Policv At the June 2007 Elk River Municipal Utilities Commission meeting, one of the agenda items was a Personal and/or Credit Use and Security Policy. During that discussion the need for a Customer Deposit Policy was introduced. A proposed deposit policy was reviewed. On Line Utility Exchange (OUE) will be utilized for assessing credit scores. The deposit is a standard two months estimated average utility bill (electric, water, sewer). After three years of good standing the deposit is returned with interest. For residential accounts with a credit score above 68%, no deposit is required. Failure to provide a social security number will result in the required deposit. For commercial accounts, the deposit can be in the form of a personal guarantee, 2 months deposit or an irrevocable letter of credit. The irrevocable letter of credit has to be renewed each year. If the letter of credit is not renewed, the utility will penalize the account the estimated average two months utility bill. In the case of customers that have been disconnected for non-payment, a two month deposit will need to be collected along with the past due funds. Municipal utility staff has always worked with the customer as long as they keep in contact, make arrangements, and follow through with them. Jerry Gumphrey moved to approve the customer deposit policy as amended and attached to these minutes. James Tralle seconded the motion. Motion carried 3-0. 5.6 Review Pole Replacement Policv At the June 2007 Elk River Municipal Utilities Commission meeting, staff was directed to draft a utility pole move policy. The 10 conditions were discussed and proposed policy was reviewed. Jerry Gumphrey commended staff on a good job. James Tralle moved to approve the Elk River Municipal Utilities Pole Move Policy. Jerry Gumphrey seconded the motion. Motion carried 3-0. 6.1 Review Property Insurance We maintain two different insurance policies for our power plants. They are boiler and machine insurance, and property insurance. The boiler and machine insurance through AIG/Hartford Steam Boiler covers repair costs due to major equipment failure with very high deductibles. Our substation transformers are also covered under this policy. The property insurance thru the League of Minnesota Cities Insurance Trust (LMCIT), covers all of our properties for property damage including vehicle and equipment. An issue that