Paul Sandy

The meeting included the approval of the agenda and consent items, which covered the current month's bills, the 2026 fee schedule, the 2026 regular meeting calendar, and rate increases previously approved. Key discussions focused on personnel matters, specifically the approval and recommendation to the City Council for the new Water/Wastewater Operator Job Description, noting that current wastewater operators are well-positioned for this hybrid role. New business involved the approval of Bolton and Menk's Proposal for Design and Construction Engineering Services for the 2026 Lead Service Line Replacement Project, where details on funding structure and the goal to complete all replacements by 2033 were discussed. Additionally, the Commission approved a Confidentiality Agreement with Eden Renewables, LLC for a potential solar project. Various staff reports were presented, concluding with expressions of gratitude and well wishes for Commissioner O'Day, who is retiring.

The meeting included the approval of an amended agenda, which incorporated the issuance and sale of general obligation bonds payable from net utility revenues. Key discussions involved the BlockMetrix contract, where the Commission voted to deny presented changes and resubmit the original agreement for an accept or deny response by a specified date. The Commission approved awarding a CMAR Contract to Rice Lake Construction and recommended a revised Billing Representative Job Description to the City Council. A significant portion of the meeting focused on the City Council's request to change the Payment in Lieu of Taxes (PILOT) contribution calculation basis, which was tabled pending written clarification from the City Council and City Attorney regarding respective authorities and the impact on utility rates. Additionally, the Commission discussed cost-sharing options for the Country Manor project and reviewed issues with the current City Charter, noting the need for modernization to improve financial structures.

The meeting included the approval of an amended agenda and consent items, excluding previous minutes. Key discussions involved a presentation of the Tower Award recognizing over 30 years of service by an employee. The Finance Manager reported on customer growth stabilization in the industrial class, declining consumption in others due to conservation efforts, and continued progress on transitioning to Tyler Payments by January 1, 2026. A significant process change to utilize electronic notifications instead of door hangers for Cold Weather Rule alerts was also announced. The Finance/Operations Committee recommended approval of the 2026-2030 Capital Budget and the 2026 Operations Budget, which totals $40.3 million in revenue against $40.08 million in expenses, and this recommendation was approved by the Commission for presentation to the City Council. The Commission approved updating the City Contribution Policy to base the contribution on 3 percent of electric utility revenue for 2026, deferring further increases pending a rate study. Other approvals included a revised Solar Development Agreement, the DRAFT Leaking Water Service Line Policy, the Statement of Work for Audit Services, a proposal for CMAR Design and Construction Services for Water Backwash and Reclaim Facility Improvements, a proposal for Lead Service Line Replacement engineering services, and a proposal for the Main Lift Station Reconstruction Project engineering services. Staff reports highlighted discussions on potential charter revisions and the utility's electric revenue bond rating improvement to A2.

The meeting agenda was amended to prioritize the Finance Manager's Report. Key discussions included updates on vendor responses for BlockMetrix, ongoing language updates with the City Attorney regarding the ClimaVision Weather Radar installation, and cost estimates for hydro-generation. The Finance Manager detailed the impact of delayed federal LIHEAP funding and emphasized customer payment arrangements. The commission reviewed preliminary budget information, noting a correction that shifted the 2025 electric department projection from a deficit to a surplus. A major focus was the direction regarding the Payment in Lieu of Tax (PILOT) contribution, with the commission approving a 3% contribution for 2026 contingent upon the completion of the Rate Study, and deciding to formally request the Charter Commission review the PILOT language and broader utility governance structure. Additionally, the commission delayed a decision on accepting donated paint for Main Lift Buildings until spring 2026 and formally approved the Rotary Park Solar Contract. New business included a discussion on developing a dedicated EV charging rate due to difficulties faced by commercial users with current demand charges, and a request for staff to draft a policy concerning leaking service lines.

The meeting included a review of financial projections and rate designs for electric, water, and wastewater departments, leading to motions to design rates as proposed. The Secretary's Report highlighted an increase in operating income, power costs, local option sales tax, and non-restricted cash compared to the previous year. An adjustment request for excess water usage was denied. The commission approved a pay request for the South Zone Water Tower project. Discussions also covered the MMUA Summer Conference, performance framework training, an interconnect agreement with Minnesota Power, and a franchise fee dispute with the City of Baxter. The Superintendent's Report detailed water, wastewater treatment, and electrical department projects, as well as hydro department updates. The commission approved Resolution 2019:01 regarding distributed energy resources and net metering. A closed session was held to discuss offers for the purchase of Roberts property.