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5.3. ERMUSR 12-09-2008Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 December 2, 2008 To: Elk River Municipal Utilities Commission Jerry Takle John Dietz Jerry Gumphrey From: Troy Adams Subject: MMUA Safety Compliance Contract Phone: 763.441.2020 Fax: 763.441.8099 As an update, staff is continuing to work towards contracting a safety compliance program for 2009. Elk River Municipal Utilities and the City of Elk River have paid MMUA for their safety program services through the end of the year. City staff is continuing to research alternatives to MMUA but no official decision has been made to leave MMUA. Because of this, the MMUA safety compliance contract renewal has not been signed. Through this process a number of shortcomings pertaining to the Utilities were identified with the MMUA safety program. For one, the water department has concerns regarding facility OSHA inspections and chemical trainings. Also, Federal and State regulation compliance for the PCB transformer handling and storage shed were not being addressed through MMUA. In discussions with MMUA, these issues as well as others can all be addressed at no additional cost to the Utility. Ultimately, staff intends to secure a safety program(s) that will provide exceptional training and a reasonable cost while reestablishing the safety culture that seems to have weakened. At this time, staff recommends continuing with the MMUA safety compliance program contingent upon MMUA satisfactorily addressing all of the program shortcomings and the Utilities' ability to terminate the contract if the City decides to make a change.