The Owatonna
Public Utilities Commission met in regular session in the Commission Room. Present were Commissioners Truelson, Mayhew,
Schreiner and Noyce. Absent was
Commissioner Moen. Also present were
General Manager Shurts, City Administrator Sparks, Finance Manager Bruno, Gas
Marketing Manager Green, Field Services Manager Morgan, Energy
Conservation/Marketing Specialist Finholdt, HR/Administration Supervisor
Madson, Accountant
The high school students led the pledge of allegiance.
Minutes
The Minutes
from the rescheduled meeting of
Committee Reports
Finance Committee – Commissioner Mayhew reported the Finance Committee met, reviewed and approved the financial statements and vouchers.
Personnel Committee – The Personnel Committee did not meet.
2004 Preliminary,
2005-2008 Forecasted Budget
Finance
Manager Bruno distributed copies of the 2004 Preliminary, 2005-2008 Forecasted
budget to the Commission. He noted there
are not any proposed rate changes in the electric; however an increase of 3.9%
in the water and a 2.6% increase in the gas are proposed. Mr. Bruno noted a meeting to discuss the
budget is scheduled for
Finance
Manager Bruno stated the budget book is the same format it was in previous
years showing summaries, income, expenses and capital. Mr. Bruno noted the proposed rate increases
are included in the budget numbers. The
proposed rates are attached to the assumptions which will be covered in more
detail at the budget meeting. General
Manager Shurts noted there are not any personnel additions proposed in the
budget. Mr. Shurts added, if there are
any questions that need to be answered before the budget meeting, please direct
them to myself or
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Contributed
Services
The
Contributed Services report as of
General Manager’s
Report
General Manager Shurts explained the retained earnings graphs. He noted everything is pretty much on course. The water moved up slightly due to irrigation and watering.
General
Manager Shurts reported OPU will be celebrating Public Power and Public Gas
Week the week of October 6-10. He noted
an open house will be held everyday that week from
General Manager Shurts read a “Thank You” note from Dan Warner regarding the money OPU contributed towards the Business Recovery Guides project.
General Manager Shurts reported to the Commission on the peak alerts and energy management programs for the 2003 summer season. He noted four peak alerts and three energy management alerts were called this year in conjunction with each other.
Energy Conservation/Marketing Specialist Ken Finholdt updated the Commission on the CIP dollars. He reported the rebate programs have been very well received and energy savings equal an annual usage for 55 residential electric customers, 15 water customers, and 22 gas customers. It is anticipated the programs will over-spend the budgeted dollar amounts in the gas utility by $26,000 and $2,100 in the water utility. At this time, staff would like the Commission’s approval to spend the extra dollars for the rebate programs. Commissioner Mayhew moved to approve the additional spending in the natural gas and water utility rebate programs. Commissioner Noyce seconded the motion. All Commissioners voting Aye, the motion passed.
Field Services Manager Morgan updated the Commission on various OPU projects.
Gas Marketing Manager Green distributed handouts to the Commission. The handouts provide a recap of the natural gas purchasing for the coming winter. Mr. Green noted Northern Natural Gas will be raising our rates by 30%. One reason for the increase is due to a natural gas pipeline built by New Ulm and Hutchinson. Northern will reduce rates in certain areas to be competitive, but will increase rates to those customers who cannot take advantage of the new pipeline. General Manager Shurts added, these numbers were figured into the rate study and are therefore, figured into the proposed budget and the proposed rate increases. Mr. Green continued, we have 50% of our natural gas locked in for the coming winter. The forecast for the winter is that it will be normal. Commissioner Mayhew inquired, which influences determine how much you lock in? Mr. Green replied, storage amounts and the predicted weather.
General Manager Shurts gave a brief update of the Triad events and their branding efforts.
General Manager Shurts reported to the Commission OPU will begin talks with Steele Waseca Coop Electric to develop a joint service territory agreement for the North Bluff Estates.
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Finance Manager Bruno reported the transfer date for the bond refinancing is October 7th. He also noted, SMMPA will be completing their refinancing in October also. SMMPA will save $4.5 million including principle and interest.
Mr. Bruno further reported the Lease/Leaseback letter of intent has been sent and the project will move forward to determine what the value of the water system will be. The letter does not commit us to anything other than a determination of the value of the system. City Administrator Sparks added, the City Council also approved a letter of intent, at the last council meeting, for the Lease/Lease back of the City sewer system.
City
Administrator’s Report
City Administrator Sparks reported Fire Chief, Mike Johnson, was awarded the MN Emergency Director of the Year for Region 1. Mr. Sparks also reported budget study sessions are scheduled for October and November for the City Council. Study sessions will be held at different City facilities.
Commission
Roundtable
Commissioner Schreiner – Nothing.
Commissioner Noyce - Nothing.
Commissioner Mayhew – Nothing.
Commissioner Truelson – I will be attending the SMMPA Annual Meeting with Steve on October 16, 17th.
Adjournment
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
Respectfully submitted,
Administrative Assistant