Owatonna Public Utilities Commission May 28, 2002 4:00 p.m.

The Owatonna Public Utilities Commission met in regular session in the Commission Room. Present were Commissioners Truelson, Moen, Mayhew, Schreiner, and Noyce. Also present were General Manager Kuntz, City Administrator Sparks, Finance Manager Bruno, Field Services Manager Morgan, Information Services Supervisor Turnbull, Accountant Teresa Hottman and Administrative Assistant Tammy Schmoll. Guests included Dave Emanuelson.

The Minutes of the regular Commission meeting of April 23, 2002 were presented to the Commission. Commissioner Moen moved to accept the Minutes as presented. Commissioner Mayhew seconded the motion. All Commissioners voting Aye, the motion passed.

President Truelson asked for nominations for the office of President. Commissioner Moen moved to nominate Commissioner Truelson as President, that nominations cease, and a unanimous ballot be cast for Raymond Truelson as President. Commissioner Schreiner seconded the motion. All Commissioners voting Aye, the motion passed.

President Truelson asked for nominations for the office of Vice President. Commissioner Moen moved to nominate Commissioner Mayhew as Vice President, and that nominations cease. Commissioner Schreiner moved a unanimous vote be cast for Chuck Mayhew as Vice President. Commissioner Moen seconded the motion. All Commissioners voting Aye, the motion passed.

President Truelson asked Commissioner Mayhew and Commissioner Moen to serve on the Finance Committee with Commissioner Mayhew acting as Chairperson. Both Commissioners accepted.

President Truelson asked Commissioner Schreiner and Commissioner Noyce to serve on the Personnel Committee with Commissioner Schreiner acting as Chairperson. Both Commissioners accepted.

Finance Committee – Commissioner Moen reported the Finance Committee met, reviewed and approved the Vouchers and Financial Statements. There were no work orders presented to the Committee.

Personnel Committee – Mr. Dave Emanuelson reported the Personnel Committee met and discussed the Utility Custodian/Laborer retired. He reported the position will not be filled immediately, but OPU will contract with a cleaning service temporarily. Mr. Emanuelson also reported the Committee discussed the goals of top management and one other employee, a Customer Service Representative, resigned.

Digger Derrick Bid

The attached bid tabulation for the purchase of a Digger Derrick was presented to the Commission. Staff recommended awarding the bid to the apparent low bidder, Altec Industries, Inc., in the amount of $149,496.18. After discussion, Commissioner Schreiner moved to award the bid to Altec Industries, Inc. Commissioner Moen seconded the motion. All Commissioners voting Aye, the motion passed.

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Owatonna Public Utilities Commission May 28, 2002 4:00 p.m.

The attached bid tabulation for the Repair/Repainting of the Academy St. Tower was presented to the Commission. Staff recommended awarding the bid to the apparent low bidder, Leadcon, Inc. in the amount of $278,000.00. After discussion, Commissioner Mayhew moved to award the bid to Leadcon, Inc. Commissioner Moen seconded the motion. All Commissioners voting Aye, the motion passed.

Finance Manager Bruno presented a Credit Card Policy to the Commission for their approval. Mr. Bruno explained the policy states OPU will accept MasterCard and VISA for payment on a customer’s account and puts a $2,000 per month limit on the amount a customer can charge towards their OPU bill. After discussion, Commissioner Mayhew moved to accept the policy as submitted with a stipulation the policy is revisited the first of the January. Commissioner Schreiner seconded the motion. All Commissioners voting Aye, the motion passed.

The Contributed Services report as of April 30, 2002 was presented to the Commission. The Commission signed the policy.

The first item discussed was a handout designed by Information Services Supervisor, Becky Turnbull, regarding pro-rating of the utility bills. She explained the handout to the Commission. General Manager Kuntz, staff, and R.W. Beck recommend OPU does not implement the pro-rated billing due to the excessive costs involved. The Commission concurred.

Field Services Manager Morgan gave an update on the Power Plant Substation project as well as the downtown project.

General Manager Kuntz reported Alliant Energy has agreed to the transfer of service territory in the northeast section of town and to the amount of 8 mils per kWh that was proposed by OPU. A letter is coming from Alliant to substantiate their verbal agreement in writing. Further discussions regarding the physical collateral will follow. Mr. Kuntz stated, negotiations should be complete by October 1^st.

Mr. Kuntz reported the Union Contract increase of 3% becomes effective June 1^st. There will not be a cost of living increase above the 3%.

Mr. Kuntz reported 20 customers have signed up for ClearWave high speed wireless internet; the Power Plant ran at full load with no problems, and the joint meeting between the City Council and OPU is scheduled for June 4^th at 11:30 a.m. at Jerry’s.

Mr. Kuntz asked the Commission to change the date of the Strategic Planning session due to schedule conflicts. Administrative Assistant, Tammy Schmoll, will send out new dates to the Commission.

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Owatonna Public Utilities Commission May 28, 2002 4:00 p.m.

Mr. Kuntz reported talks between SMMPA and Split Rock Energies regarding a partnership arrangement have ceased due to conflicting views regarding the financial worthiness of the arrangement.

City Administrator Sparks reported the City Council has a study session on July 8^th scheduled to discuss annexation and territory. He invited the OPU Commission and staff to attend the meeting.

Commissioner Mayhew – What is the status of the customer survey? General Manager Kuntz replied, the commercial and residential surveys are complete and a presentation will be made to the OPU Commission as well as the staff.

Commissioner Moen – Thanks to Dave for his work on the Commission. Welcome to Trish.

Commissioner Schreiner – Thank you to Dave, welcome Trish.

Commissioner Noyce – Nothing.

Commissioner Truelson – Thank you to Dave for all your work on the management goals. Welcome to Trish. The Employee of the Month for May is Bob Hill.

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 5:20 p.m.

Respectfully submitted,

Tammy Schmoll

Administrative Assistant

ABM Equipment & Supply Yes Yes $166,869.55

Altec Industries, Inc. Yes Yes $149,496.18 **

Aspen Equipment Yes Yes $200,665.59

TMI Coatings, Inc. Yes Yes $307,800.00

Champion Coatings, Inc. Yes Yes $359,000.00

Classic Protection Coatings Yes Yes $373,860.00

Leadcon, Inc. Yes Yes $278,000.00 **

Odland Protective Coatings Yes Yes $331,200.00