Good afternoon. I will call to order the public utilities commission meeting for Tuesday, October 28th, 2025. Uh we'll get started. The first item on our agenda is our uh consent agenda. There's any questions on that?
I'll make a motion to accept the consent agenda. >> Second. >> Okay, we have a motion and a second. Um, is there any further discussion? If not, all in favor say I. >> I. Motion carries. Um, second item is our
employee of the month. >> Yes, commissioners. Uh, the employee of the month for September is Matt Schmezzing. Um he's being recognized because on September 18th we had emer emergency operations to repair some of our aging infrastructure. He went above
and beyond expectations. He started to physically explore valves in the water system near the dig site that at this point weren't identified on our maps or records. He discovered a critical valve that when properly used significantly lessened the impact on our water
customers. So rather than shutting water off to 21 of our downtown uh businesses, we only needed to shut off three and for a much shorter time. Uh we'd like to commend him for his willingness to keep searching for a better way. And when our documents and records indicated
otherwise, he played a key role in a successful emergency operation. So I just want to recognize Matt Schmezzing. Make a mo Oh, make a motion to recognize match mising as the employee of the month for September 2025. >> Second.
>> All right, we have a motion and a second. Is there any further discussion? Not. All in favor say I. >> I. >> I. >> Opposed? >> Motion carries. Thank you very much, Matt, for your service. Uh, now on to item three, old business um solar on public buildings grant.
Derek. >> Well, uh, good evening, commissioners. Uh, if you recall last, uh, meeting, I brought an agenda item about solar and public buildings to you, um, that we went out for RFPs, uh, through the Minnesota Department of
Administration's bidding process. So, we received those RFPs on October 8 uh, October 15th. Um, so how that generally works is their bidding process gives each vendor a score on different metrics and that whatever the highest score is
is what you generally who you'd go with through their bidding prog uh pro process. So unfortunately um we rece I mean was nice is we received um RFPs back from four vendors. Um there was some vendors that didn't follow the RFP. Um, I also threw an addendum into that
RFP before the deadline, which we're able to do, and then I tell the um the state what that is, and they let the vendors know any changes. Um, unfortunately, some of the vendors didn't follow either. So, it kind of skewed skewed the scoring. Um, for
example, one vendor put the max amount on each building when we specifically asked for a certain KW size at specific buildings. Um, so it really wasn't fair to use some indivi some vendors quotes
when they didn't follow and it lowered their price and etc etc. So um but um the two that we were looking at was solar connections and bluff track energy. They both followed the RFP. They also both came for site visits to all
the locations. Um so that helped um with the scoring as well. Uh but based on the cost per watt of energy um from the bidding process uh we recommend to proceed with the grant
uh award to Wolf Track Energy for the project. Uh they also have additional experience with the solar public schools um that they mentioned. So they're both similar grants and applying for them which is beneficial. So, if approved
tonight to go with Wolf Track Energy, um I'll probably contact them tomorrow and state so they can let the other vendors know, you know, that we've moved on from this and then go on with that. Additionally, um if there's any concerns
structurally on roofs on any of these buildings, that should be found out when they come again and reassess, you know, the situations at each location. And if there's any issues, we're not going to go through with those locations because in theory, um, we could get 100% of this
paid for with the 70% of the grant payment and then 30% as a direct payment in le of taxes. So, um there's some other things we'll need to work out just with um for sureing that we can get some of the that this process done by the end of the year
because after after um this year and beginning of next year, some things kind of change with uh USA made products and whatnot. So, I also attached kind of the scoring. So, if anyone had a chance to look at that
or has any questions, um you can feel free to ask. I can try to explain the best I can. >> You mentioned there's they did some work for schools. Was that around here or >> um not around here? No. >> Okay. >> I mean the so uh public high school has
solar but that was prior to any um Minnesota or federal grants. They did receive some uh grant money from us when we had a program but that was yeah before this. [Music]
I'll entertain a motion if >> I'll uh make the motion to approve Wolf Track Energy as the selected vendor for the solar on public building grant program and authorize application for grant funding and finalized design and
specifications. Second. >> Uh we have a motion and a second. Is there any further discussion? If not, all in favor say I. >> I. >> I. >> Opposed. >> Uh motion carries. Now on to new business, uh third party billings, mailing. >> Um commissioners, this is something
we've been considering for a while in our office. Um every month the finance department prints approximately 6 to7,000 or 6 to7,000 bills and notices. Um, in order to do that, we pre-order paper that has the standard formatting on the back and then we print them out.
Um, go through them, stuff them, mail them. Um, the whole process, each billing cycle, and there's three cycles, um, per month takes 5 to 6 hours. Um, and then we're finding the paper's getting more expensive. Having the inserter machine and the size of the
copier we need are all more expensive than what we would need if we could reduce our volume. um by getting rid of this ma this part of the process. So, if we would choose to go with one of these third-party mailing services, um the whole process really stays within our
hands for the most part. Pauline would continue to go through and review everything and set everything up once all the readings and everything are in. And then after she gets through everything and the file would be sent to a vendor for them to print and stuff and mail and do that part of it for us. Um before they can do that though, we have
to approve their final file. So, we have that final approval before anything goes out. Um, we we met with three different vendors when we talked about this. Um, two of them provided very complete quotes. They the way they did it was hard to compare. Um, and then the third
vendor um was more local, smaller. They're just trying to get into this business. Um, so they were more expensive and we didn't feel like they could handle the size of the business that we want them to do. Um, so we're asking to move forward with Infosend. It's company I believe based in uh
Arizona. Um, they have they have all the HIPPA compliance and everything we need with the electric bills. Um, everything we do is on a secure website. Um, it met with the vendors with us, so they've they've seen that process and they're okay with it. Um, and I think that we'll
save anywhere between $500 and $1,000 a month doing this just by getting some of that equipment and staff time. And they actually can get some deeper discounts on the mail as well because they can batch it better than we can even. So, >> is there any lag from the first time
they they have to run it or send it? >> There'll be about six weeks, they said, to get it set up. So, we have enough paper, enough bills to get us through the end of the year. Okay. >> So, we're anticipating the January billings would be the first ones that they would do for us. >> Got it. >> Is there any option to like email bills?
>> We do we give all the customers that option. We have um about 500 bills I think a month that are emailed. We've tried to get more people to do. We've done a couple of you know messages on the bills and um Tyler Tech has actually given us some stuff that we can use to help promote that a little bit more too,
but we email as many as we can. So essentially every time we would get that we would lower our cost for the service as well. And then on the the labor, you know, looked at the cost analysis. So we're not going to get rid of the labor. >> No. Um Pauline does all the utility billing and she reviews everything. I
think this will give her more time where she can can better review some of the bills and look for discrepancies and help to identify some of those problems that maybe take a little bit longer to come to light now. um because she'll have more time to do that with the bills and be more thorough that way.
>> So by keeping that we'll still have that cost, right? So it'll really be a cost in for this service. Do we know about what that is? >> Her labor cost. >> No, just without that factored in like I assume this will cost so much per
>> on an annualized basis. >> So we we figured the staff time is about just over 9 cents per bill. Um, so that's the part that we would still have, I guess. Yeah. >> So, even at that, there's still a little
bit of a savings there, >> obviously. >> Okay. >> Is this a a contract? So, yes. Are we tied for how long? >> I believe they gave us two years initially >> and then they discounted their smaller
batches. We were concerned cuz when we send the like the late notices and the final notices, those batches are much smaller obviously cuz most people have made their payments by then, but they would said they would discount that even though it has to be a minimum size. I'll entertain a motion if there's no
other questions. I'll make the motion to approve use of thirdparty mailing service for utility bills and allow the finance director to sign the agreements with info send. >> Second. >> 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. Uh, next item is uh bulk gasoline and diesel fuel bids. >> Yes, commissioners. This is um to get authorization to go out uh for bids for fuel uh for our bulk gasoline and diesel
fuel. We have a fuel depot that's located um Third North Street and approximately Strings Spring Street uh that's used for all city and PUC um vehicles. We've had this for several years uh probably 15 or more years. Uh
we go out for bids every 3 years. So, you can see the details on here. It's approximately 41,000 gallons of gasoline and 35,000 gallons of um diesel that's consumed every year by uh police, city, and PUC vehicles. Um again, it's a
three-year contract which will end January uh 31st, 206. So, um we typically spend about almost $200,000 in gasoline and diesel fuel a year. I'll make the motion to authorize the
city manager to prepare specifications and advertise for bids to supply bulk gasoline and diesel fuel for the fuel depot located at Third North Street and approximately String Street Spring Street for a three-year contract period for the city of New and Public Utilities
Commission. >> Second. >> All right. Uh we have a motion and a second. Is there any further discussion? If not, all in favor say I. >> I opposed. >> Motion carries. Next up is a world connectic energy management services.
>> Uh yes, commissioners. So this is uh a master agreement and service agreement for um energy management services with connect. Um we entered into a contract with them in 2021. Basically uh they are experts in the field of procuring
natural gas for our customers. Um, and so this the current contract expires. This is a new contract. Basically, everything is similar to what it was in the past uh with a slight increase. Um, and this would be for a three-year term
as well. We're very happy with the service that they um supply, so we're not um inclined to look any further. >> I think they've done a good job for us. >> They've done a very good job. >> Yeah. >> Did their price go up a lot in >> Not much. I think it was Gosh, I don't I
think it was like a couple hundred bucks. >> I think it was like 8,100 uh per month last >> 200. >> Yeah. >> Yeah, it's pretty good. >> Yep. >> That's been a big savings for us. >> Mhm. I make a motion to authorize city
manager to sign the master agreement and service agreement for energy management services with world connect kinetic energy incorporated for the procurement of natural gas for the city of Newm. >> Second. >> All right, we have a motion and a
second. Um, is there any further discussion? If not, all in favor say I. I. >> I post. Motion carries. Uh item 44 is the Excel Energy Service Agreement for transmission. >> Yes, commissioners. This is
a transmission to load interconnection study that Excel requires you to do before you put anything new onto their system. If this was a big solar project, they'd have to do it. But we're just adding a substation to support we'll call the
West Newm area. That industrial park up there behind Walmart, Becker Drive, some of that area has been identified for several years in our long-term studies that we have limited ability to back those areas up if we would have a fault
on the system. So, this is just the necessary first step to start looking at how we can add a substation in that area. to start correcting that issue. >> How long does a study taste take, Dan? You know, >> well, they said in the paperwork
optimistically 120 days, but I know they have a tremendous backlog right now with all the different things going on with uh AI data centers and all that things. So, if we could get it in probably 6
months, that's probably optimistic. Just another note, um you're um approving the initial deposit of 15,000. Um Excel um can incur costs up to 25,000, but anything over that would
require our approval. So just so that you know, >> okay, >> know that. Yeah. >> They kind of do a guess of what the study's going to cost you and then adjust from there. Mhm. Okay, I'll make a motion to approve the XL Energy service agreement for a
transmission to load interconnect system impact study an advanced deposit of $15,000 and authorize the planning and development engineer to sign the agreement on behalf of the NUPU uh pending final review by Excel's legal
department. I'll 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. Next up is 45 well 21 2 and 23 reconstruction.
>> This is Yeah, this is finally the actual construction contract on things you've heard about for the last well since August of 24. We've been working on that's when we the well failed before that but the river had gone down enough that we could
get out there and assess it and figure out what happened to well 23. This is the first contract which is trout which is the well reconstruction which is item 44 is just to rebuild the actual wells. So trout will come in
redrill the wells effectively removing the old casing and everything and returning it all to native soil where the well is. So effectively it would be a completely new reconstructed well in the exact same location.
The second contract which will be our next item will be the balance of the project. Was that expected to have to do that? >> Um, our wells are in a location where the DNR is not a fan of where they are. They
would like them somewhere else. We need to rep rebuild a couple of these wells to get them back in service now cuz when we look for other sites within the city limits in New Simon aquifer and they will not permit a
new well on Mount Simon aquifer either. >> So it's kind of one of them, okay, if you don't like where we're at, where would you like us to put a well? So we need to rebuild these wells and take care of these as long as we can. And we do have it in the budget to start studying and looking for new source
water next year. So you will hear about this in the water planning budget meeting in November, I guess. >> But these new wells should last quite a while. >> Yeah. A couple of the sister wells here were born were bored in uh 1969.
I think this one was built in the 80s. So this would be potentially like a 40-year project. So it will be there for the long term. >> This type of construction is the only type of construction that they would
allow in this area. Um and by doing um 23 which isn't in service. Um 22 is in the same wellhouse. So, it just makes sense to do both of them at the at the same time and
have two um reconditioned wells that time >> because access to those is difficult with the river the way it is. >> Yep. >> And the reason that it's taken this long is the permitting process has been extensive to get us to this point where
we could bid it. >> And we still have a couple of variances we will be filing for once we have the contractors on board. And we've used the this company before. They've done well work for us. >> And actually in the state of Minnesota,
this company is the only one that has the technology to actually do an overshot and re redrill a municipal well in the same location. >> Probably in the five state area. >> Yeah, we there was only one bidder for the well portion of it.
There's a very select technology. They did go out and do some work like in the Bacan for that kind of oil drilling even. So these guys no drilling >> drillers. Okay. >> I'll make the motion to authorize the
city manager to accept the bid from Trout Companies of St. Joseph to reconstruct well 22 and well 23 in the amount of $745,64. >> 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. Now we're on to the second part of the well 4.6. >> Yeah, excuse me. As I said, this is the balance of the project. MBI, the contractor here, will come in,
tear down the existing wellhouse and rem and remove everything around the wells. Then Trout, which you just approved, will come in, do the overshot and their process. And after Trout's done, MBI will come back in and rebuild the wellhouse,
um, do the electrical work, pipe fitting, all the all the rest of the balance of project. When would they start? I see it's due to finish in spring of 27. When would they? >> Well, trout is available about next
August is their first available timeline. >> Oh, >> and obviously we do not really want to schedule anything. >> March, April, May with the river and stuff. >> So, if it starts next fall, I'm happy with that. if they go through and do
winter construction because hopefully the river is nice and frozen then we won't have a problem with it and we're being generous and going to grant obviously act of god >> contingencies depending on what the river does. >> Yep. >> Yeah. We wouldn't want to do it in the summer either, you know, just because
we'll have to take well 22 offline. Okay. So, >> and there's >> a limited window >> times too like in the middle of summer if they get a huge rain up at uh Monovid or somewhere suddenly the river will come up here and we're >> out of luck again.
>> Yeah, cuz you had talked about that to take the well one well down, you just wanted it in a certain time of year, but aren't they both going to have to be down for a while? Yep. >> One is already down. 23 is already down. So, doing this over fall when people aren't watering their lawn and whatnot,
>> we're good with that. Yeah. >> I'll make Oh, you ready? I'll make the motion to authorize the city manager to accept the bid for M municipal buildings MBI of New Minnesota to dem demolition and reconstruct the
warehouse for well number 22 and weld number 23 in the amount of $61,616. >> Second. >> Right. A motion and a second. Um is there any further discussion? If not, all in favor say I. >> I oppose. Motion carries. Now we have
the preliminary budget discussion. >> Yeah. Um according to our um regulations or charter I guess uh we're required to uh present the uh preliminary budget in the October meeting. So you have that
attached um to your agenda. Just some um things to note. Uh the 2026 budget anticipates operating income at 51,789421 operating expenses of 51,517380. So we have a net operating income of
$272,41. Um we've got net income of 2,77830 with a change in unrestricted cash of a negative 805356 and our debt service coverage is 5.45 four or five times. Um
we will be um in the next item setting up a meeting to go over uh the budget and so at that time you'll be able to um take a look at it and ask questions at that. >> Very good. I'll take a motion on
>> I'll make a motion to receive an order filed the preliminary 2026 budget for the new home public utilities. >> Second. >> Okay, we have a motion and a second. Um, is there any further discussion to call the roll on this one? >> No.
>> No. All right. All in favor say I. >> I. >> I. >> Opposed? Motion carries. And now we will go on to scheduling our meeting. >> Yeah. Typ um Yes. Typically, um the um budget meeting or budget workshop is held the afternoon prior to the November
um commission meeting. It happens to be on November 25th this year. So, we're looking at starting at 100 p.m. on Tuesday. This is held in the front conference room at the PUC, which is 3:10 First North Street. So, if that
works for everyone, um we'll set that up. Otherwise, we'd need to find another date. >> Yeah, I don't works for me. It does work for me as well. >> You guys good with it? >> About how long?
>> Typically, in the past, it has taken the entire afternoon. I mean, we have about enough time to come back up and and do the meeting. So, Okay. >> Yep. >> 1 to 3:30, 1 to 4. >> 1 to 4, probably. Yep. And with some new commissioners, it may take a little bit
longer, too. So, everybody okay with that? >> I'll make the motion to schedule a meeting to review the preliminary 2026 budget for the new on public utilities at 1 p.m. Tuesday, November 25th, 2025 in the public utilities front conference
room, 310 First North Street. >> Second. Motion in a second. Um, is there any further discussion on the meeting? None. All in favor say I. >> I. >> Opposed? Motion carries. Last item. Is there a report of claims?
>> I make a motion to accept list of claims paid in the amount of 3 million 42 42,57021. >> Second. >> All right. We have a motion and a second there. Um, is there any further discussion on the report of claims? If
not, all in favor say I. >> I. I. >> Opposed? Motion carries. Last item is, do our commissioners have any additional comments? I was told yesterday that Minnesota Valley Action Council uh energy assistance program is shut down
until the government >> they are still accepting applications as far as I >> but they're not >> they can't they don't have any funds to distribute but they're still approving applications for future funding. >> Mhm. But no money available. >> Correct. >> Hopefully that will get solved soon.
>> Soon. Yeah. Agreed. All right. If there's nothing else um the meeting is adjourned. Thank you everybody. >> Thank you.