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6.1. ERMUSR 10-14-2008./j Elk River -~ Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 September 30, 2008 To: Elk River Municipal Utilities Commission Jerry Takle John Dietz Jerry Gumphrey From: Bryan Adams Subject: MMUA Safety Management Program Phone: 763.441.2020 Fax: 763.441.8099 The Elk River Municipal Utilities and City of Elk River utilize MMUA to provide our safety management program. We are in the East Central Group consisting of 10 communities. Elk River's cost to be in this program is estimated to be $31,053.60 for the safety program and $6,000 for the JTS program. The cost of the safety program is split between the City and Elk. River Municipal Utilities. Elk River Municipal Utilities pays the entire fixed cost and the City and Elk River Municipal Utilities split the variable cost on an employee numbers. With the projected costs, the City cost is $10,438.36 and Elk River Municipal Utilities cost is $20,615.24. Attached is the spread sheet reflecting these program costs and a service agreement between MMUA and Elk River Municipal Utilities. Staff requests authorization to execute the agreement. Minnesota Municipal Utilities Association AMENDMENT TO SERVICES AGREEMENT Safety Management Program Contract~Date: August 27, 2008 Contract Number: 5-2009 The services agreement entered into between Minnesota Municipal Utilities Association (MMUA) and Elk River Municipal Utilities (Elk River), dated August 28, 2007, contract number 5- 2008, is amended as follows: PART II. Section 1. 1. DURATION: This Agreement shall remain in force from October 1, 2008 until September 30, 2009 (the "expiration date"). PART III. Section 1. 1. COMPENSATION: For the services covered by this Agreement, Elk River shall pay MMUA an annual fee of thirty-one thousand fifty-three dollars and 60 cents ($31,053.60) for the 2008-09 annual period. Such compensation shall be due and payable according to the selected payment terms below. Payment terms for the fee agreed to above shall be based on one of the following options (select one): ^ Annual Payment ($31,053.60) ^ Quarterly Payments ($7,763.40 each) For any term of less than twelve full calendar months, the fee shall be a portion of the annual fee, pro-rated based on the number of calendar months or partial calendar months in which the services were provided as a percentage of twelve (12). The parties hereby accept the terms of the Agreement as modified. 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