3.2. ERMUSR 06-09-2009 - Laserfiche WebLink

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Page 2 Regular meeting of the Elk River Municipal Utilities Commission May 12, 2009 referred staff to IRS Representative Steve Bruzda for a definitive ruling. The IRS ruling was that tax should be applied for all vehicles taken home with the exception of the Security vehicle. The purpose of the on-call vehicle was to ensure better response in any emergency however this did not meet the ruling of the IRS for being "public safety" vehicles. Discussion followed. John Dietz surveyed other utilities and found some do not take home vehicles year round, just during the summer storm season. Lori Johnson stated the City of Elk River does not have anyone on- call, therefore no employee takes home a vehicle. Jerry Gumphrey stressed the importance of having equipment on hand. John Dietz stated he could understand the need for the on-call person to have the vehicle along with the Superintendents, but did not agree with the Director of Operations taking home a vehicle. John went onto say that the Line Superintendent and the Water Superintendent should be able to take care of any situation and not have to call in the Director of Operations. Taxing methods were discussed along with the need to make the change in the employee handbook. Daryl Thompson said ERMU needs to follow the guidelines of the IRS with the least impact on the employee. Daryl said he also agreed with two electric vehicles and two water vehicles for take home vehicles, along with the Security van, and that the Director of Operations should carry a radio for communication. Jerry Gumphrey again stressed the need for additional vehicles during the storm season. John Dietz moved effective June 1, 2009 to allow take home vehicles for electric on-call, water on-call, electric supervisor, and water supervisor, and Security Technician. Daryl Thompson seconded the motion. Motion carried 2-l. Jerry Gumphrey opposed. At this time Daryl Thompson said he had something he would like to say. There have been a lot of changes made and that can be difficult but sometimes are necessary. There is a whole new management team that has been put on board over the last few months and he would hope the Utilities Commission will let them do their jobs without any micromanaging. John Dietz asked staff how the vehicle tax issue was going to be assessed. Further discussion followed regarding tax implications. Consensus was to choose the one that would be the least burden on the employee. Jerry Gumphrey directed staff to check on the need for additional take home vehicles during the summer storm season and update the employee handbook. 4.2 Jackson Street Water Tower Update At a previous ERMU Commission meeting, staff was directed to have the Jackson Street water tower inspected. The State of Minnesota Public Health Lab results of the paint on the tower showed high lead contaminants on the tank legs.