All right. I will welcome everybody to the public utilities commission meeting uh for Tuesday, September 23rd, 2025. Uh the first item on our agenda is our uh consent consent agenda. I'll make the motion to accept the
consent agenda. Second. Okay, we have a motion and a second. Is there any further discussion? If not, all in favor say I. I. Opposed? Motion carries. Now, under reports, our first item is our employee of the month recognition.
Yes, commissioners. Um the employee of the month for August is Taylor Rookert. Um Taylor started with the um IT department in 2025 and he has been a great asset um willing to come in early
or stay late um whenever the city um or utility needs him. He has taken on numerous projects already. These include updating servers to the latest operating system, setting up new domain controller, numerous switches for various locations, and configuration
changes to improve the o overall cyber security of our environment. Taylor pushes the department to continue to look at ways to prove an efficiency, ease of use, and security. He's also worked closely with the FR secure and the two-year cyber security program
initiatives. So, I want to congratulate Taylor Rooker for employee of the month. I'll make a motion to recognize Taylor Rooker as employee of the month for August 2025. I'll second that. All right, we have a motion and a
second. Is there any further discussion? If not, all in favor say I. I. Opposed? Motion carries. Thank you very much, Taylor, for your your efforts. Um, section 2.2, Solar on Public Buildings Grant. Derek
Good evening everyone. Um I don't know if you've ever heard of solar on public buildings. Um it initially was a grant uh available for customers in Excel Energy's territory only. Um recently uh
the state has allowed that to expand into other territories in the state of Minnesota. So there's roughly about 14.5 to 15 million dollars in grant funding. uh available to you know public buildings in Minnesota to install solar
arrays up to 40kw uh along with the federal elective pay up to 100% of the cost of the system can be covered if awarded this grant. Uh so the utility with guidance from the clean energy resource teams and the Minnesota
Department of Administration um we've submitted an RFP to uh vendors. Uh three locations owned by the utility have been viewed as potential locations to install solar. Uh the first one is the electrical distribution department. Uh the second is the natural gas department
shed and the water filtration plant. to submit uh the RFP. Uh the Minnesota Department of Administration allowed us to utilize their bidding process. Uh by using their process, um we were able to submit this RFP to previously vetted uh
solar vendors that they have vetted out in their system and have used in past years. So they vet out these solar um companies and we're able to, you know, utilize their bidding process. uh the utility or community using or wishing to install solar on a building
needs a separate application per building. So we'll be submitting three applications if we move forward. Uh once the final selection of vendor occurs, uh we'll bring an agenda item back to you for approval to proceed. Um, one reason why we didn't do this prior is because
um, as I as I kind of put in the um, alternatives to consider the application process um, actually opened up on the 31st and due to different things on the federal and state level, we need to have
not necessarily this completed by the end of the year, but we need to have proof of construction in order to one receive the grant grant to to get the direct payment. So, it kind of was a very speedy process to go out and get
the RFP. So, once we get the RFPs back and decide on some vendors, we'll bring back further information on how to proceed going forward. Um, yeah, there's lots of d lots of information on this, but to summarize, um, that's the solar and public um, buildings grant that we
are going forward. The final selection for us on the 13th of October. So um is that for the actual so this the where it says uh NUPU RFP um that's the deadlines we have within the RFP. So we issued it on the 11th of
September. Um we had site site visits last Friday. Um there's a questions deadline and this is all within the Minnesota Department of Administration's guidelines in their RFP process. Um they has a very specific and and strict kind
of guidelines. So, the questions deadline um will be the 24th and then we need to have responses to those questions by the 30th. Um the deadline for those vendors submitting is is the
7th of October by 3 p.m. And then by the 13th, we need to have those vendors selected. So hopefully by then and you know getting those RFPs back from the vendors uh contacting them we can get a better grasp of when that construction
and when I mean construction it could just be proof that we have payment for the panels before the beginning or the you know beginning of next year. If that's the case then we can get that grant money and then still be eligible to get that direct payment. If you're
not familiar with the direct payment, we weren't able to utilize um federal tax credits in the past. So, a few few years ago, municipalities were able to get um direct payment instead of that um tax credit.
So, we would know before we approve anything if we win the grant and have that funding, right? Yeah. Cover or what percentage of the project it would cover, right? Yep. Well, yeah. I think that I think the idea would be um final selection would
be on the 13th of October. The October meeting we would bring something forth correct to let you know what um what we have chosen um what the cost is going to be what what buildings would be. At that point you can approve us to go further
and uh the application um would be put in um to see if we can potentially get funding. Um I would imagine we would find out funding sometime you know when the application is submitted they I don't want to use the word guaranteed
but they was within two weeks they'd have a response back to any applicant. Okay. So by the end of November we they know I mean they're the ones that are you know put this grant out and they know that they know the federal deadlines when certain things will have a sunset and they want to use these funds. So
they're moving quickly with Yeah. There's not necessarily an award date in here, but it's more of right cuz basically we've got the deadline for application and then the construction. Yeah, it's a pretty quick It is. It's very quick. And I mean, I met with, you know, one vendor was like, you know, this is a next year project,
but you know, he made sure to say, you know, there's there's I think there was a bill passed um reconciliation bill to show that that's what kind of set forth is if you can have proof that something is under construction. Right. Right.
You are you're guaranteed to get that grant and that money. I believe also though um is there an opportunity to do it if everything doesn't fall in line? There is an opportunity to do um it next year or is
that for the 30%. Well, that's it's kind of for both. Okay. So that's if we hit the December 31st deadline um January 1, there's rules that are going into place that basically put some restrictions on the
type of equipment, type of panels, type of Right. And it gets into more into the weeds of Yeah. So then it's a it's a little bit more difficult um to make sure that or it's going to be maybe even more costly to make sure that we get equipment that falls under those restrictions.
Right. So it will be important just from the get-go so in case something does happen we don't have to deal with that next year. So we're trying to talk to one this through well because things would need to be you know Americanmade. There's different criteria after the beginning of next year
what's eligible for different opportunities. Okay. Yeah. All right. I'll entertain a motion on that. I'll make a motion to receive an order filed the report on the solar on public buildings grant.
Second. We have a motion in a second. Is there any further discussion? If not, Go ahead. Got one question. Um, and I can't get it off here on number three. Um it says the ownership of the system
is that um I didn't print everything out. So under number three, what is number three is scope. Yeah, it says ownership of the system such that the site owners have the option to buy the system at a future date without providing developmental
capital. Is that what you're asking about? I don't think that would pertain to us. I think that I think that has to do with if there's a financing option. I remember in the application there was an option that we could have checked if
we wanted financing and we don't want any we requiring financing. We're so we went through financing. I mean anyway you could probably get some financing through some of the vendors, right? Okay. where sometimes they'll they'll put it up for you and then you know you
can buy it over the long term or after a certain period of time. Makes sense. Oh, I do have an RFP on it. Own it. Exactly. Yeah. Sounds good. All right. Is there any other further discussion? If not, all in favor say I. Opposed? Motion carries. Uh now on to
local climate action grant. Is that you as well? Yep. Okay. Um so uh the city of New along with u new public utilities applied for a local climate action grant through the Minnesota Pollution Control Agency. Um we applied for that grant and
we signed a an agreement with the MPCA on July 8th of this year. The city of New Alm has a community census track identified in the environmental justice justice screen tool a total of 665 dwellings. uh the utility Minnesota
Valley Action Council uh clean energy resource teams in region 9 development commission uh plan to work collectively to implement an energy improvement project within this area of of new that's considered in that environmental justice community. Uh the
intent for this project is to provide widespread energy improvements across identified uh environmental justice community aiming to reduce greenhouse gas emissions by at least 20%. Energy audits offer guidance for efficiency and cost reducing improvements directly tied
to broader environmental goals and sustainable practices ultimately fostering a sense of environmental stewardship within the community. The city is to establish a foundation of both energy literacy and the means to improvement, eventually
building into a city-wide energy action initiative. The grant that we applied for and received was in the total amount of $49,940. And uh one reason why the utility is here bringing this to the
commission is that we use some of our eco or what was a conservation pro program funds. um in a total of $2,525, which to receive this grant, like many grants, you need to have some some sort of a matching fund. And that $2,500 some
was part of that matching fund um that we use from our less represented or lowinccome program to put towards to get that grant. So between all these entities we're working together to first we're we're looking at
um advertisement currently now um members from the clean energy resource teams is compiling um advertisement that they'll bring to me and I have a mailing list from that portion of the community which I've
actually attached um it's kind of a green a purple background green part of the community. So this area will get direct mailings to regarding this grant and as mentioned in that portion of the agenda we're
focusing mostly on energy audits in this community and then from there since working with uh Minnesota Valley Action Council they perform audits but they also go back and have crews that work inside those homes to implement things
found insulation corrections of within the home for energy saving measures. So, you don't see real street names, but um I guess what would be the west side of New Alm, right? I guess it's almost south, but um that long line
is is Broadway. So, everything on um this side of Broadway going down to the river and going all the way to the Cottonwood River to close to First North is that whole green area. So, we'll be
directly focusing on that area of New Alm. Uh once the mailings go out, um we'll probably do, you know, the boots on the ground and focus on neighborhoods um to get people to sign up. Uh not
everyone within this area probably will be eligible. Minnesota Galaxy Council, they focus on low low income households. So individuals that receive the these mailings and are interested will probably have to contact Minnesota
Valley Action Council and kind of go through their process to, you know, move forward. So yeah, that's not bad. Half a percent match to Yeah. Right. Yeah. Yeah, it's kind of a unique um opportunity where the city, the PUC and
then um the uh local climate or you know the other agencies uh Minnesota Valley Action Council and that can all and we got lucky we got lucky you know the Minnesota Val Action Council was willing to kind of partner because they'll be they'll be doing a lot of work you know they'll be getting a lot
of calls and doing the audits and whatnot. So um you know they'll be getting I'm you know roundabout way paid for that through the grant and then we get in their invoice and we get reimbursed from the PCA. So have we ever done a program like this
before? I haven't personally. You know we just have our regular we do work I mean we are able to contact Minnesota Council because we have we have a relationship with them through one of our SIP our conservation improvement programs but not something at this scale. No,
I was just curious if we knew like a participation rate to expect if people I would hope so. Yeah. And with the grant, it would be more in depth because we'll have to, you know, I'll probably have to collect those individuals bills and kind of look to see if there has been any reduction cuz with the money we get,
they want some data which is, you know, part of the deal. It's fair. Yeah. Yeah. Very good. I'll take a motion on that. I'll make a motion to accept the local climate action grant agreement between the Minnesota Pollution Control Agency
and the city of New in the amount of $49,940 including a monetary match from New Public Utilities in the amount of $2,250 totaling $52,460. Second.
Uh we have a motion in a second. Um is there any further discussion? If not, all in favor say I. I. Opposed? Motion carries. Now up to the utilities director replacement process. Commission President Commissioners
um as you know um Director Manerfold Manerfeld will be retiring at the end of the year. Uh and so we would like to start the recruitment process um by hiring an outside consultant to help us with that recruitment. Uh we would like
to use MGT uh as they are a leader in executive recruitment roughly 1500 completed engagements in 45 states. Um one big thing is they do work with municipalities uh specifically in utilities. Um so that's uh that's a plus
a little more specialized. Um, and they'll pretty much be doing everything, you know, from the recruitment, which is position assessment, stakeholder input, advertising, candidate screening, background checks, and facilitation of the interview process. Um, this recruitment is expected to take about 14
weeks from when it's initiated uh to candidate appointment. Um, there are kind of three options uh presented to you. The first would be to approve the proposed um agreement with MG MGT which
would be 22,000 um dollars and that includes a 12-month guarantee. So if the candidate doesn't last um more than a year, uh they would go back and recruit for free. Um there is an additional cost
to do the advertising and background screening um of $4,000. That would bring their total cost to 26,000. Um you could direct us to do this internally or look at one of MGT's
alternative approach approaches which is a limited scope which is $22,000. You save roughly $4,000 but they don't do a brochure, they don't do the background check and there is no guarantee. uh and they don't do the interview questions or virtual recruitment which is 12,000
which is just a very condensed process. Uh and then there also is no guarantee attached with that as well. Um Shauna unfortunately couldn't be here but she and I both recommend going with the full proposal at 26,000. Um because last time
we went out to recruit that uh director lasted six months and we had to go back out. So, um, again, I have faith that MGT will get us a good group of candidates, but just in case, we have that guarantee to go back out free of charge.
Have we used them for anything? No, this would be um the first time that we would be using them, but when Shauna did do um some background checks uh on them, um they were highly recommended from other m municipalities. Okay.
Yeah, I don't see any issue um bringing this in house I don't think is an option. I mean it's a professional executive position which is is extremely difficult to do and they've got a lot of lot of reach. So seems to make sense to me.
Yeah. Otherwise, if there's no other discussion, I'll take a motion on that. I'll make a motion to authorize the city manager to sign any applicable documents and to move forward with MGT Impact Solution LLC uh to conduct the search for a utilities
director. Okay. And then I'll second that. And could we just add amend that to add the amount for 26,000 just so it's clear which option we're going with? Yeah. for for the amount of 26,000. Thank you. All right, we have a motion and a
second. Um, any further discussion? If not, all in favor say I. I. I. Opposed? Motion carries. Um, next up is uh geotechnical, right? Yeah. Wastewater. Oh, wastewater. Sorry, wastewater study.
Skipped one. Good afternoon, commissioners. Um we are asking you to um consider a water and wastewater study proposal. Um we are looking to do a cost of service and rate study on both water and wastewater this
fall. Um so the last time we completed a cost of service and study for water and wastewater was in 2021. Um and we sent out proposals to four companies for preparation of this study. All four
companies responded with a proposal and the total cost for the proposals range from 15,000 to $66,333. Um we have reviewed um the proposals and um staff has ranked them individually based on experience qualifications cost
proposed completion timeline and overall quality and staff does recommend accepting the proposal from Dave Berg Consulting. In reviewing the proposals, um the proposal from day per consulting LLC was deemed to have the most value to the PUC along being with being the low
bid. Um both water and wastewater department um each had $25,000 allocated in their budget for 2025 to complete a study like this this year. Um just some addition additional information. Um the timing on this is is
really good. Um we just completed the capital improvement assessment for both uh wastewater and for water. So it's good time to start looking at rates to prepare for uh some of those capital improvements that are going to be needed in the future. Um also to let you know
Dave Bird Consulting has done cost of service studies for us prior. Um so we are um confident in his ability to do the job and do it well. um he has done uh last two maybe for electric and um
steam. So now he'll um he'll be doing it for water and wastewater if you approve. What is the typical frequency that we get these reviewed by a professional? Typically we try to do it every five to six years unless something major happens
but yep because we're inside that so I'm assum but it is good timing with the the capital plan that we've looked at as well. Yes. I'll I'll make the motion to authorize the city manager to accept the proposal
from Daveberg Consulting LLC for a cost of service and rate study for the water and wastewater utilities in the amount of $15,000 total for both studies. I'll second. Okay, we have a motion and a second. Is
there any further discussion? If not, all in favor say I. I. I um now on to the geotechnical evaluation. Yes, commissioners. This is um an item that's needed uh for the design of the 20th Street South Force main and water
main crossing. Uh they need to go across the Canadian Pacific Rail Line at 20th South Street and um and then also at um Tower Road. Um this this is part of or it's required.
We have hired Bolton and Mink to do the design for this force main. Um so this is something that they um do not do that uh needs to be done um so that they can put that into their design. Um we're the point of this is to get this project
ready for potential federal funding um if that does happen in 2026. And we said if it wasn't going to get federal funding, we were probably going to have to move forward. Um regardless, well, we're eventually eventually
eventually we'll have to um the force main that is in the ground right now is over 50 years old. And so um at some point we're going to we want to be proactive and make sure that um we get this project done, but um I think we have a little bit of time to try to get
some funding if we can. Okay, that makes sense. I'll make the motion to receive an order filed the proposal to complete a geotechnical evaluation by Bronn Intertech in the amount of $25,578
for geotechnical eval evaluation for the 20th Street South Force main and water main crossing. Second. All right, we have a motion and a second. Um, any further discussion? If not, all in favor say I. I.
Opposed? Motion carries. Uh, now a transformer replacement. Dan. Yeah, this is uh we went went out to bid and developed the specs. Um, you approved that in May
of May 27th PUC meeting. Um, the transformer is about 60 years old. It's at the end of its life. It's actually been a repurposed transformer that had fins and oil coolers and a bunch of things added to it to make it be able to
handle number seven turbine going through it. Nobody's really willing to sign what the rating actually is of the transformer the way it's running. So, we're kind of taking this opportunity to clean this up since it's becoming a very important part of our capacity
agreements and contracts with MyS number seven is active and can serve into the market. And this transform, if we get it in order today, believe it or not, the lead time of only 40 to 45 weeks is actually a good lead time compared to what we've been seeing
in the last few years. So, um, and that would lock in the price. Yeah, everything's locked in. We We're just waiting for them to build it and deliver it. There will be another contract for the installation and
commissioning, which we will start developing that now and get that all done in that lead time. So, we're ready to go when the transformer arrives. And that's all within budget, correct? The Yeah. And actually, more than enough. I think we will be coming in under budget from what we have
here on this form. This is also another one of the items that we can check off of our uh 20-year capital improvement plan. So, yeah, 60 years on anything is a long time. I'll make the motion to authorize the
city manager to accept the bid from Virginia Transformer for the replacement of the Center Street Substation Transformer in the amount of 1,425,48. Second. All right, we have a motion and a second. Um, is there any further discussion? If not, all in favor say I.
I. Opposed? Motion carries. Dollar 69 KV Breaker upgrades. Yeah, this is to do the engineering on what would be our last 69 oil filled breaker to get replaced. Um, we are
actually working to install the other four that we've ordered over the past few years through the commission here. This one though we have submitted to the department of com commerce and received a grant for part of it. So, it's timely
and we were part of the rules of the grant. We couldn't start work on it until everything was filled out and done. So now we're going to hurry and do our engineering, try to get the breaker in time to meet all the requirements of this project. So the first thing is
getting the engineering done. They will probably in fairly short order. We will have an order for another breaker to get it coming and hopefully we can get this done next year is the goal. But that will be subject to the lead time on the
breaker that we will be ordering. But we have some on the shelf. So we will be able to make this work. Good. Yeah. That's another old breaker too from 60s. Yeah. After this, this will be the end of our oil filled breakers. So for your
SPC plan, environmental, all that. It's all good to make this. Good. Get that. Go away. I'll make the motion to authorize a city manager to accept the proposal from Power System Engineering Inc. PSSE to develop plans, inspects, acquire, and
oversee the replacement of the 69 KV Breaker at the Center Street Substation in the amount of $50,000. I'll second that. All right, we have a motion and a second. Um, is there any further discussion? Not. All in favor say I. I.
Opposed. Motion carries. Um, now on to our report of claims. I'll make a motion to accept the list of claims paid in the amount of 3,525,1236. Second. All right. Motion and a second on that.
Is there any further discussion? If not, all in favor say I. I. I. Opposed. Motion carries. Uh, last item. Is there any comments from our commissioners? Um, I do have a comment. Um, I would like um to introduce you to our new uh
water um district energy supervisor. He has about a week and a half under his belt. Um Paul Tesher Tisher Tisher. And um yeah, so we welcome to the utility. He's he has uh jumped in
running this last week. So, um Paul, is there anything you want to share with the commissioners? Thank you, commissioners. Thank you, staff. Um looking forward to growing here. Um you know, it's going to be an exciting time. So, we're we're very much in the discovery phase right now and
learning. So, um I'm about here right now on the water level. So, um but I'm available for questions if anybody has any for me. So thank you. Well, welcome. Thank you. Appreciate it. All right, we will adjourn. Eric
meetings adjourned. Thank you.