11-17-2009 ERMU MIN - Laserfiche WebLink

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Page 4 Regular meeting of the Elk River Municipal Utilities Commission November 17, 2009 structures for the water department, he would like to see a small rate increase now instead of a larger increase later. Discussion followed regarding the rate increase possibilities. John Dietz moved to delay a water rate increase until a financial analysis of the water department is received and Commission requires this by Apri12010. Daryl Thompson seconded the mofion. Motion carried 3-0. Jerry Gumphrey moved to increase the WAC fee by $500 effective January 1, 2010, and another $500 on January 1, 2011. Daryl Thompson seconded the motion. Motion carried 3-0. 5.2 Review and Consider Demand Electric Service Tariff Revision At the October 13, 2009 ERMU Commission meeting, the possibility of implementing an economic development rate and a low load factor demand customer rate was discussed. The businesses this would affect are the ones that have a very large load but only run for short periods of time. Through research of these customers on our system, 12 were identified as low load factor customers. Connexus Energy and Xcel Energy currently have low load factor exemptions and they both have the same demand adjustment factor (DAF) in their demand customer rate schedule. Staff recommends implementing a DAF on the demand electric service tariff for low load factor customers with the requirement to not peak between 2:00 p.m. and 10:00 p.m. Jerry Gumphrey moved to approve the implementation of DAF on the demand electric service tariff for low load factor customers and to revisit this in December 2010. Daryl Thompson seconded the motion. Motion carried 3-0. 5.3 Review and Consider Health Care Savings Plan Revision At the Apri110, 2007 ERMU Commission meeting, the commission voted to adopt a Health Care Savings Plan (HCSP) administered by the Minnesota State Retirement System (MSRS). This HCSP allows employees to contribute to a tax free savings plan for future use paying medical expenses. The current allocation is 1 % of gross wages. This plan requires participation by all employees and is employee funded. Discussion followed as to how the groups can be split to allow more contributions to this plan. Jerry Gumphrey moved to change the current Health Care Savings Plan policy and split into two divisions, the office and field staff, to allow for a three tiered contribution structure effective January 1, 2010. Daryl Thompson seconded the motion. Motion carried 3-0.