6.4. ERMUSR 06-12-2007Elk Diver
Municipal Utilities
13069 Orono Parkway
Elk River, MN 55330
June 7, 2007
To: Elk River Municipal Utilities Commission
Jerry Takle
Jerry Gumphrey
Jim Tralle
From: Bryan Adams
Subject: Surge Protector Program
phone: 763.441.2020
Fax: 763,441.8099
In the past, many of our customers including ourselves would experience electronic equipment
damage from lightning. A number of years ago, we started marketing Levington surge protectors
as a strategy to educate our customers and minimize damage. Our marketing effort never really
was successful. Border States, our wholesale supplier, has discontinued marketing this line. Elk
River Winlectric has picked up this surge protection line. I see no reason for us to continue
marketing these products.
We have about a dozen customers that we have installed whole house surge protectors at the
meter base, we monitor these surge protectors and charge $4.50/month to monitor and replace if
they fail. None to date have failed. Some of our customers have called and inquired about
purchasing these surge protectors instead of continuing to pay $4.50/month. At this rate, these
devises have more than been paid for.
Because we installed these devices, we have some ongoing liability if we discontinue this
program. One solution is to give these devices to the customer and forgo the monthly charge if
they sign an indemnity agreement.
Attached for your reference is an indemnity agreement drafted by Ron Black.
AGREEMENT
For valuable consideration, receipt of which is acknowledged, I (we) agree to indemnify
and hold harmless, Elk River Municipal Utilities, its officers, directors, employees,
agents, successors and assigns against all liabilities, claims, or demand for injuries or
damages to any person or property arising from or associated with the Whole House
Surge Protection devise under the electric meter attached to our house located at
I (we) personally assume all risks and hereby release Elk River Municipal Utilities, its
officers, directors, employees, agents, successors and assigns of from any and all liability,
claims, demands, actions and cause of action whatsoever, arising out of or related to any
loss, damage, or injury, that may be sustained by the undersigned or any property of the
undersigned that may result.
I (we) understand and agree that Elk River Municipal Utilities makes no representations or
warranties, either express or implied about the Whole House Surge Protector
manufactured by Levington.
Date
Date
June 5, 2007
To Whom It May Concern:
Elk River Municipal Utilities recently decided to stop offering the Whole House Surge
Protection Program. This device is manufactured by Levington. This is the system you have
been leasing from Elk River Municipal Utilities as a power protection system designed to protect
your home appliances from lightning power surges. This is a good product and we recommend
its continued use. Many of our customers have asked if they can purchase this device instead of
the current lease.
Since Elk River Municipal Utilities will no longer be servicing these systems and in gratitude for
your subscription with Elk River Municipal Utilities you will be given an opportunity to continue
to use the Whole House Surge Protector without having to pay the leasing fee.
If you would like to keep the power protection system, please sign the attached agreement and
return it to Elk River Municipal Utilities. Should you have any questions, please contact Elk
River Municipal Utilities at (763) 441-2020.
Sincerely,
Bryan Adams, P.E.
General Manager