6.1.b. ERMUSR 06-16-2015 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Theresa Slominski—Finance and Office Manager
John Dietz—Chair
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
June 16, 2015 6.1b
SUBJECT:
Staff Update
DISCUSSION:
We are working with NISC on our reports for write-offs, and the internal write-off process to
make it less manual. The process precedes the report and this is turning out to be a slow process
as we are doing a lot of testing along the way. We have a schedule in place that is taking us
through July for anticipated completion. That means I will not have a completed report to
provide for write-offs at July's meeting, when I would typically present 2° quarter write-offs. I
will present information as I did for the first quarter,with as much additional information as I am
able. The third quarter write-off presentation should be accompanied by an actual report. We
can discuss at the next meeting but I wanted to provide a heads up of where we are at in the
process and what the expectation would be for the July presentation.
The Customer Care and Billing side of the NISC software transitioned to live support this month,
so we are no longer working directly with our Project Manager, as they have moved on to other
conversions. We were provided a Support Project Consultant contact to help facilitate our
transition and that has proved to be very helpful. This person acts as a resource very similar to
what our Project Manager provided us.
We received our property and liability renewal premium notification and it is approximately
$7,000 less for the 2015/2016 term than the prior 2014/2015 term. The reduced premium is
because our municipal liability has decreased due to the new LMCIT rating process that focuses
on exposures which are not all present to our utility, and our modification factor has decreased. I
have attached the Renewal Premium Summary provided by our insurance agent for reference.
ATTACHMENT:
• Renewal Premium Summary
UN,
POWERED BY
Page 1 of 1 NATURE
Reliable Public
Power Provider P O W E R E D T O S E R V E
265
ELK RIVER MUNICIPAL UTILITIES
RENEWAL PREMIUM SUMMARY
07/01/2015 TO 07/01/2016
COVERAGES PREMIUMS PREMIUMS
2014-2015 2015-2016
Property $24,995 $24,207
Mobile Property $4,124 $4,420
Equipment Breakdown $61,741 $62,428
Crime Included Included
Faithful Performance Bond $ 328 $ 367
Municipal Liability $49,442 $42,045
Auto Liability and Physical Damage $6,929 $7,039
Open Meeting Law Included Included
Petrofund Included Included
Fireworks Not Covered Not Covered
.. ..._.. .........
No Fault Sewer Back Up Not Covered Not Covered
TOTAL PROPERTY/CASUALTY $147,559 $140,506
PACKAGE
Liquor Liability Not Covered Not Covered
Excess Liability Not Covered Not Covered
TOTAL P/C PREMIUM $147,559 $140,506
Note:
1. Property premium factors:
a. Coverage increase from$54,305,868 to $55,031,352 due to the
LMCIT Inflation Replacement Cost Factor.
2. Municipal/Auto Liability Premiums:
a. Favorably impacted by new LMCIT rating process transition
emphasizing Land Use, Police,Sewer Back-up and Employment
Related exposures.
b. Experience Modifier factor decreased about 3% from .910 to .880
(1.00 average).
3. Employee Dishonesty Option at$1,000 deductible, $517 premium ($189
additional). Currently a$20,000 per occurrence deductible.
4. Optional Excess Liability Coverage$1,000,000 limit (currently not
purchased)
266