A major highlight was the commission’s consideration of a natural gas prepaid opportunity presented by Minnesota Community Energy. This initiative, involving private investors selling municipal bonds for natural gas, offers the utility a chance to capitalize on the spread between tax-exempt and taxable bonding. This long-term contract proposes securing a natural gas supply with a daily volume of 750 mmBTUs during winter and 200 mmBTUs in summer, with a minimum discount of 32 cents. The commission noted that past agreements offered slightly lower discounts of 27 to 29 cents. The projected savings from this contract are estimated at $1.5 million over 30 years, a significant yet smaller figure compared to the $2.5 million savings from the initial agreement. However, the commission emphasized the flexibility of the new agreement, which allows choosing a supplier through Connect Energy, contrasting with the previous fixed supplier arrangement with British Petroleum.

The commission did not seek approval during this meeting as final contracts were still in development; instead, they aimed to finalize discussions by December. This approach allows termination without substantial financial loss if terms are unmet. The commission underscored the importance of diversifying supply strategies. They also reflected on the timeline of such agreements, with the first taking 15 years due to 2008 market conditions, while the current proposal has been in progress for about nine months.

In addition to gas procurement, the commission addressed infrastructure updates. They approved the replacement of a 610 KVA breaker, the fifth and final oil-filled breaker being replaced with an SF6 gas alternative. This project, contingent on a $100,000 grant from Minnesota Grid Resiliency, is urgent as it must be completed within a year to a year and a half of receiving the grant. The commission acknowledged potential delays in delivery but noted a grace period to manage such issues.

The commission authorized the city manager to accept a quote from GE Grid Solutions LLC for $96,215 to handle the installation, which will coincide with a transformer replacement. The existing transformer is notably older than the breaker at approximately 65 years, emphasizing the necessity of this upgrade.

The current system, plagued by leaks and expensive repairs, will transition to using a bulk solution supplied by a vendor, pending a process plan submission to the Minnesota Department of Health. The new chemical solution is expected to be delivered every two weeks.

The commission also tackled the approval of the 2026 fee schedule, which includes updated rates for natural gas and wastewater fees effective January 1, 2026. Adjustments to residential and commercial service connection fees were outlined, with the new rates approved following a roll call vote.

Additionally, the commission accepted a bid from Lipkkey Oil and Trucking for bulk diesel fuel and unleaded gasoline for city fueling stations. The three-year contract was awarded based on the lower bid of 9 cents per gallon.

The meeting also included a report on claims, with a motion to accept a list of claims paid totaling $3,006,321.65, passed without further discussion.

Concluding their discussions, the commission recognized employee Ross Rothwell as Employee of the Month for October 2025. Rothwell, from the finance office, was commended for his efforts in understanding and implementing the new Minnesota paid leave program, highlighting the commission’s appreciation for staff dedication and professional development.