Owatonna Public Utilities Commission April 22, 2002 4:00 p.m.

The Owatonna Public Utilities Commission met in regular session in the Commission Room. Present were Commissioners Truelson, Moen, Emanuelson, Mayhew and Schreiner. Also present were General Manager Kuntz, City Administrator Sparks, Finance Manager Bruno, Field Services Manager Morgan, Energy Conservation/Marketing Specialist Finholdt, HR/Administrative Supervisor Madson and Accountant Teresa Hottman. Special guests included Rhonda Findell & Mark Bergquist from Olson, Thielen & Co., Ltd.; Mike Smith, Rochester Public Utilities and Jody Kvaas, Owatonna Peoples Press.

Dave Emanuelson led the Commission in the Pledge of Allegiance.

The Minutes from the regular meeting of March 25, 2002 were presented to the Commission. Commissioner Emanuelson moved to accept the Minutes as presented. Commissioner Moen seconded the motion. All Commissioners voting Aye, the motion passed. Commissioner Mayhew abstained from voting due to his absence at the March meeting.

Finance Committee – The Finance Committee met, reviewed and approved the Vouchers and Financial Statements.

Personnel Committee – Nothing.

Rhonda Findell and Mark Bergquist from Olsen, Thielen & Co., Ltd, OPU’s audit firm, presented the 2001 Audit to the Commission. Commissioner Mayhew moved to accept the Audit as presented. Commissioner Moen seconded the motion. All Commissioners voting Aye, the motion passed.

After discussion, the Commission decided to change the meeting to the 4^th Tuesday of every month.

The Contributed Services report as of March 31, 2002 was presented to the Commission. The Commission signed the report.

City Administrator Sparks reported the City of Owatonna is implementing a cell phone usage policy similar to one adopted by the City of Rochester. Mr. Sparks continued, a study session covering upcoming projects is scheduled for Monday. The City Council retreat scheduled for April 12^th has been rescheduled to May 15^th. Mr. Sparks further reported the City’s Audit report was presented two weeks ago.

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Owatonna Public Utilities Commission April 22, 2002 4:00 p.m.

General Manager Kuntz introduced Mike Smith from the Rochester Public Utilities. Mr. Smith is the key account representative from the Marketing Triad of which OPU is a member. He also serves on the key accounts committee of the American Public Power Association. Mr. Smith discussed an RFP submitted to the School District for energy management services. The School District will be evaluating the proposals this week. After discussion, it was decided if OPU is the successful candidate, OPU would go ahead with the engineering study.

Field Services Manager Morgan reported the water ordinance is still being worked on as well as an ordinance for conservation including a watering ban if necessary. Mr. Morgan continued by distributing a handout on projected acquisition of service territory and cost. After a lengthy discussion, a draft letter will be sent to Alliant to obtain service territory in the Northeast section of town. Commissioner Moen moved to pursue the Northeast Section. Commissioner Mayhew seconded the motion. All Commissioners voting Aye, the motion passed.

Energy Conservation/Marketing Specialist Finholdt discussed the summer peak alert procedure with the Commission. Mr. Finholdt continued by giving an update of Triad activities such as rebating in the energy star area.

General Manager Kuntz reported a prorating update will be given at the next meeting. He further reported 15 customers have signed up for the High Speed Wireless Internet and some of them are not current OPU customers. Next, Mr. Kuntz distributed the retained earnings graphs for electric, water and natural gas for the Commission’s information.

General Manager Kuntz reported Wells will not be running for a SMMPA Board seat this fall. Mr. Kuntz further reported SMMPA will announce an emergency status under certain criteria and it will be up to the member cities and their customers to try to curb electricity use.

Commissioner Mayhew – Nothing.

Commissioner Moen – Nothing.

Commissioner Schreiner – Nothing.

Commissioner Emanuelson – Nothing.

Commissioner Truelson – OPU had a nice booth at the Health and Safety Fair. The employee of the month for April is Dan Busho.

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Owatonna Public Utilities Commission April 22, 2002 4:00 p.m.

There being no further business to come before the Commission, Commissioner Mayhew moved to adjourn the meeting. Commissioner Moen seconded the motion. All Commissioners voting Aye, the meeting adjourned at 6:30 p.m.

Respectfully submitted,

Marge Madson

HR/Administrative Supervisor