11-17-2009 ERMU MIN - Laserfiche WebLink

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Page 3 Regular meeting of the Elk River Municipal Utilities Commission November 17, 2009 Daryl Thompson said it is difficult looking at the governmental agencies in the area taking cuts. Daryl Thompson added he was inclined to go with the 1.5% increase but would like to begin it now as opposed to January. Jerry Gumphrey commented on the financial status of ERMU and the need for passing on a rate increase, but adding wages to it he didn't feel was right. Jerry Gumphrey thought 1.5% was too much. Jerry Gumphrey moved to approve a 1.5% increase effective January 1, 2010, and to revisit this in December 2010. John Dietz seconded the motion. Motion carried 3-0. 4.4 Review and Consider After-hours Electric Reconnects At the October 13, 2009 ERMU Commission meeting, the Commission voted to eliminate the after-hours electric reconnect stipend. 'The employee on call would be compensated per the existing call-out policy. Troy Adams reviewed the surveys and liabilities of the after-hours reconnects. Discussion followed. Art Gatchell, Lead lineman, spoke of instances he has had with reconnects and the many calls that are received from customers on the on-call phone. Consensus was to change the on-call phone number. John Dietz moved to discontinue after hours reconnects effective January 1, 2010 for customers that are turned off for non-payment. Customers turned off for non-payment will have to pay their bill and reconnect fee at the office between the hours of 8:00 a.m. and 3:30 p.m. Monday thru Friday. Emergency after-hours service will still be provided for extenuating circumstances but not for customers that are turned off for non-payment. Minimum 2 hour call out pay per existing policy will apply. Customer will be assessed $50 up to $150 based on management discretion. Jerry Gumphrey seconded the motion. Motion carried 3-0. 5.1 Review and Consider 2010 Budget Troy Adams reviewed the proposed 2010 budget. Last year ERMU received a 13.2% rate increase and not all of it was passed onto the customers. John Dietz commented on the financial aspect and that ERMU could not afford to keep carrying rate increases without passing them on to the customer. Consensus was to pass on the rate increase from GRE. No action taken. This will be revisited at the December 2009 ERMU Commission meeting when staff will have the final number for the rate increase. Terry Maurer presented a survey of SAC and WAC rate fees. The survey shows ERMU is about $1,000 below surrounding communities. The recommendation was to raise the WAC fee by $500 in 2010 and another $500 in 2011. Terry Maurer said he preferred to keep the water rates the same for 2010, until a water rate survey can be done. David Berg said due to the repairs needed on some of the