Owatonna Public Utilities Commission October 28, 2003 4:00 p.m.

The Owatonna Public Utilities Commission met in regular session in the Commission Room. Present were Commissioners Truelson, Moen, Mayhew, and Schreiner. Absent was Commissioner Noyce. Also present were General Manager Shurts, City Administrator Sparks, Finance Manager Bruno, Field Services Manager Morgan, HR/Administrative Supervisor Madson, Energy Conservation/ Marketing Specialist Finholdt, Accountant Teresa Hottman and Administrative Assistant Tammy Schmoll. John Champion, Owatonna Peoples Press, was also present.

Tammy Schmoll led the Pledge of Allegiance.

Minutes

The Minutes from the special budget meeting of September 30, 2003 and the regular Commission meeting of September 23, 2003 were presented to the Commission. Commissioner Moen moved to approve the Minutes from the budget meeting of September 30, 2003. Commissioner Schreiner seconded the motion. All Commissioners voting Aye, the motion passed. Commissioner Mayhew moved to approve the Minutes of the regular Commission meeting on September 23, 2003. Commissioner Moen seconded the motion. All Commission voting aye, the motion passed.

Committee Reports

Personnel Committee – General Manager Shurts reported the Personnel Committee met and discussed health insurance premium changes as well as the management compensation program for 2004. Mr. Shurts further reported there was one retirement in September.

Finance Committee – Commissioner Mayhew reported the Finance Committee met, reviewed and approved vouchers, financial statements and one work order.

2004 Preliminary, 2005-2008 Forecasted Budget

Finance Manager Bruno discussed three small changes to 2004 Preliminary, 2005-2008 forecasted budgeted. After discussion, Commissioner Mayhew moved to approve the budget as presented. Commissioner Moen seconded the motion. All Commissioners voting Aye, the motion passed.

Rate Policies

Water Rates – Residential, Commercial, & Industrial – Finance Manager Bruno presented a rate policy for water rates. Commissioner Mayhew moved to accept the Water Rates policy for water rates in 2004. Commissioner Schreiner seconded the motion. All Commissioners voting Aye, the motion passed.

Gas Residential Rates – GR99 – Finance Manager Bruno presented a policy for Residential Gas Rates. Commissioner Moen moved to approve the policy as presented. Commissioner Mayhew seconded the motion. All Commissioners voting Aye, the motion passed.

Gas Commercial Rates – GC99 – Finance Manager Bruno presented a policy for Commercial Gas Rates. Commissioner Schreiner moved to approve the policy as presented. Commissioner Moen seconded the motion. All Commissioners voting Aye, the motion passed.

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Owatonna Public Utilities Commission October 28, 2003 4:00 p.m.

Gas Interruptible Rates – GB99 – Finance Manager Bruno presented a policy for Interruptible Gas Rates. Commissioner Mayhew moved to approve the policy as presented. Commissioner Schreiner seconded the motion. All Commissioners voting Aye, the motion passed.

Gas Crop Drying Rates – GC07 – Finance Manager Bruno presented a policy for Crop Drying Gas Rates. Commissioner Moen moved to approve the policy as presented. Commissioner Schreiner seconded the motion. All Commissioners voting Aye, the motion passed.

Contributed Services

The Contributed Services report as of September 30, 2003 was presented to the Commission. The Commission signed the report.

General Manager’s Report

General Manager Shurts informed the Commission of subtle changes to the retained earnings graphs.

Mr. Shurts’ SMMPA update included SMMPA’s refinancing, and the annual meeting. At the annual meeting Mr. Tom Koeritz of Fairmont was elected to the SMMPA Board of Directors. Also it was noted SMMPA received an Energy Star award from the State of Minnesota for its efforts in the conservation.

Mr. Shurts noted staff will attend a strategic planning session on November 13, 2003. Also, the first week of October was Public Gas & Public Power week. OPU held a week long open house with a public retirement session for Tom Kuntz.

Energy Conservation/Marketing Specialist Finholdt reported to the Commission on the energy management program. Mr. Finholdt further reported the Fall Roundup is scheduled for November 20, 2003 at the Ramada Inn. CIP activities were discussed as well.

Field Services Manager Morgan reported the construction on the Well House #10 is moving along. Also, the downtown 2400 conversion is going well.

Finance Manager Bruno noted work is still being done on the lease/lease back of the water system. Mr. Bruno also noted a contract is being drawn up for Community Utility.

City Administrator’s report

City Administrator Sparks noted after the upcoming election, a joint OPU/City Council meeting should be arranged. Mr. Sparks further noted work is continuing on the Business Retention & Expansion program. Mr. Sparks concluded by stating the City Council is continuing work on the 2004 Budget.

Commission Roundtable

Commission Schreiner – Nothing.

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Owatonna Public Utilities Commission October 28, 2003 4:00 p.m.

Commissioner Moen – Nothing.

Commissioner Mayhew – As a Commissioner and citizen of Owatonna, I want to express how much I appreciate what happens on the technical side of OPU. The staff seems to have a clear vision of what needs to be done and gets it done before there are any major issues.

Commissioner Truelson – Good luck to John Moen in the upcoming election for City Council.

Adjournment

There being no further business to come before the Commission, Commissioner Mayhew moved to adjourn the meeting. Commissioner Schreiner seconded the motion. All Commissioners voting Aye, the meeting adjourned at 5:21 p.m.

Respectfully submitted,

Tammy Schmoll

Administrative Assistant