3.0 ERMUSR 05-16-2006 - Laserfiche WebLink

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Page 3 Regular meeting of the Elk River Municipal Utilities Commission April 11, 2006 car washes have done in the past. Staff responded they have hooked up to the City water system. Jerry Takle moved to deny the request for Elk River Ford to utilize a well for the car wash. John Dietz seconded the motion. Motion carried 3-0. At this time it was requested if 6.1 could be moved up to accommodate Steve McDonalds schedule. 6.1 Review & Consider 2005 Audit Steve McDonald of Abdo, Eick & Meyers, LLP reviewed the 2005 audit. Steve McDonald indicated everything went well with only minor adjustments. John Dietz asked if the cover letter of the audit could be more descriptive regarding the problem that occurred with a previous employee and the changes that have been implemented to assure that it would not happen again. John Dietz moved to receive and file the 2005 audit with a more descriptive cover letter. James Tralle seconded the motion. Motion carried 3-0. 5.2 Review Internet Access & Request Partners Bryan explained the current computer system at the office. Bob Pearson discussed the Request Partners program the City has (which is available now) and how the utilities office employees could utilize this. This summer, after he has the proper appliance in place the Utilities would be able to utilize the intemet through the City hub. Wireless intemet was brought up as the City of Buffalo has this service and supplies it to the community. Bryan Adams was directed to look into the costs associated with supplying wireless Internet to the community. 6.3 Review Cash Flow Projection (Sprin~stad) After the results of the audit are received, staff again looks at our cash flow projections or Springstad Studies. This study looks at our cash flow projections to ensure our water and electric rates are set appropriately to cover our anticipated costs. Bryan Adams reviewed the cash flow projections. The study for both electric and water indicate the cash reserves remain relatively flat for the next few years and do not achieve the desired level of reserves. An electric rate study will be done this year to determine if our rates are appropriate. In the past only the rate increase passed down to us from GRE has been passed on to the rate payer. The Utilities has not passed on the increased costs associated with material, equipment, labor, and benefits such as insurance. This is going to be a factor in future rate increases. Water rates will be watched very closely.