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

The Owatonna Public Utilities Commission met in reschedule session in the Commission Room. The meeting was rescheduled due to a conflict with the MMUA Fall Conference. Present were Commissioners Truelson, Mayhew, Moen, Schreiner and Noyce. 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 Administrative Assistant Tammy Schmoll. Jodi Rogstad, Owatonna Peoples Press, was also present.

Commissioner Truelson called the meeting to order.

Finance Committee – Commissioner Moen reported the Finance Committee met, reviewed and approved the financial statements, vouchers, and investment report.

Personnel Committee – Commissioner Schreiner reported the Personnel Committee met and discussed at the July meeting the department heads’ and supervisors’ goals. He reported, at the August meeting, the Committee discussed the Marketing Manager position open at OPU. The position will serve as a Commercial Account Rep. for the Triad as well as purchase and negotiate natural gas contracts for OPU. The goal is to have this position filled by September 30, 2002.

Commissioner Schreiner further reported the Committee discussed the timetable for the replacement of the general manager who will be retiring in 2003.

The Minutes from the regular meeting of June 25, 2002 were presented to the Commission. Commissioner Schreiner moved to approve the Minutes as presented. Commission Noyce seconded the motion. All Commissioners voting Aye, the motion passed. Commissioner Mayhew and Moen abstained from voting.

Service Territory

General Manager Kuntz discussed service territory with the Commission. He reported an asset figure of $61,278 from Alliant has been received. This has been reviewed by staff and R.W. Beck with the recommendation the number is acceptable. Mr. Kuntz further reported, Alliant Energy has accepted the amount of 8 mills/kWh for 10 years. Staff would like Commission’s approval to move ahead with the purchase of service territory from Alliant Energy. Commissioner Mayhew moved to accept the amount of $61,278 for assets on the service territory being purchased. Commissioner Moen seconded the motion. Commissioner Moen moved to accept the price of 8 mills/kWh for 10 years. Commissioner Mayhew seconded the motion. Commissioner Moen moved to finalize and sign the contract. Commissioner Mayhew seconded the motion. All Commissioners voting Aye, all motions passed.

The attached bid tabulation for the construction of Well #10 was presented to the Commission for their approval. Keys Welling Drilling was the apparent low bidder with a base bid of $252,080. The

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

alternate bid for $267,580 includes the additional pumping equipment and water main work to allow us to pump directly into the system. This will bypass the existing Central Waterworks and in the event of a total loss of the Central Waterworks, still enable us to provide water service to the community. Commissioner Schreiner moved to award the bid to Keys Well Drilling in the amount of $267,580. Commissioner Moen seconded the motion. All Commissioners voting Aye, the motion passed.

The Contributed Services report for the months ending June 30, 2002 and July 31, 2002 were presented to the Commission. The Commission signed the reports.

General Manager Kuntz turned the Commission’s attention to the new rebate form included in their agenda packets and introduced Energy Conservation/Marketing Specialist Ken Finholdt to update the Commission on the new rebates being offered by the Triad. Discussion ensued.

General Manager Kuntz and the Commission discussed the dates for the Commission meetings. It was decided the fourth Tuesday would continue to work and Administrative Assistant Tammy Schmoll would call each Commissioner to remind them of the meeting.

General Manager Kuntz reported SMMPA is looking for locations to build a wind generator. The cities of Fairmont, Blooming Prairie and Owatonna are being considered.

Mr. Kuntz reported a Board seat is open on the SMMPA Board of Directors and St. Peter, Redwood Falls and Preston are the applicants wishing to take the place of Wells.

Mr. Kuntz read a letter from Fire Chief Mike Johnson complimenting OPU and its employees in the assistance they provided for the recent fire downtown.

City Administrator Sparks reported the City Council is studying the Morehouse Dam and a preliminary decision should be in by November.

Commissioner Noyce – Nothing

Commissioner Schreiner – Nothing

Commissioner Mayhew – Inquired on the budget process. It was reported the budget will be presented at the next Commission meeting.

Commissioner Truelson – I am planning on attending the SMMPA Annual meeting in Bloomington October 3^rd and 4^th.

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

There being no further business to come before the Commission, Commissioner Mayhew moved to adjourn the meeting. Commissioner Noyce seconded the motion. All Commissioners voting Aye, the meeting adjourned at 5:10 p.m.

Respectfully submitted,

Tammy Schmoll

Administrative Assistant