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Record of Proceedings

Rochester Public Utilities Board Meeting Summary 2025-12-17

Boards and Commissions — Wednesday, December 17, 2025
BodyRochester, Minnesota
SessionBoards and Commissions
DateWednesday, December 17, 2025
StatusFILED
Video Record
0:00 / 1:55:44

Transcript — Verbatim
0:00

It is 4 p.m.

0:01

and this meeting of the Rochester Public Utilities Board is now called to order.

0:08

The first item on the agenda is of course the approval of the agenda.

0:12

May I have a motion and second to approve the agenda as presented.

0:17

I'll move approval of the agenda.

0:19

Second.

0:20

We have a motion and a second.

0:23

All in favor, please signify by saying aye.

0:26

Aye.

0:26

Aye.

0:27

Aye.

0:27

Any opposed?

0:29

The agenda is approved.

0:33

And now it's we come to the most bittersweet part of the meeting tonight.

0:38

Um section number two, a special recognition of Melissa Grainer Johnson.

0:45

I'm gonna take a tiny point of privilege.

0:47

I first met Melissa when it her name was Missy Grainer, and uh that was way back in the summer of uh 2020, I think, or 2021 or 2001.

0:59

Sorry.

1:00

And uh man, it's uh been a long time, but uh here we are.

1:07

Um I'm gonna read this short uh uh recognition.

1:11

Um tonight we recognize and thank Melissa Grainer Johnson for her service on the Rochester Public Utilities Board as she concludes her time.

1:21

Melissa has served on the RPU board since 2016, including in leadership roles as vice president and president throughout her tenure.

1:30

She brought a strong sense of financial stewardship and governance responsibility to every discussion and decision.

1:37

Melissa consistently focused the board on long-term sustainability, rate stability, and accountability.

1:44

She has thoughtful probing questions, emphasized clear analysis, and ensured that commitments were well understood and followed through.

1:53

Her leadership strengthened both the quality of our discussions, our decisions, and the culture of the board.

1:59

As board president, Melissa guided the board with professionalism, integrity, and respect, reinforcing the importance of fiduciary duty in public service.

2:10

On behalf of the board, RPU leadership, and the community we serve, we thank Melissa for her dedication and lasting contributions.

2:18

And at this time, it is my honor to present Melissa with a signed resolution recognizing her years of service and leadership on the Rochester public utilities board.

2:29

May I have a motion to approve the resolution on board packet page five.

2:35

I'm honored to move to approve the resolution.

2:38

We have a motion.

2:41

And a second.

2:42

It's been moved and seconded.

2:43

Any further discussion.

2:47

Councilmember.

2:49

Thank uh Malachi for the nice thing.

2:50

The one thing that I would add in there when I heard like a governance and stewardship and fiscal responsibility and sustainability was also staffing and this idea of do we have the right people in the right jobs?

3:02

And I thought that's a special set of attention that Melissa brought, especially in this time to bringing in a new general manager, and I really appreciated it.

3:13

Yeah, and I I would just kind of along those lines.

3:15

I really appreciate your your words on that.

3:18

Melissa, thank you.

3:19

Um, I know we've been on the board.

3:21

You you helped to onboard me onto the board um about seven years ago.

3:26

I really appreciate your leadership.

3:28

And along those lines, as uh councilman Keane said, I I just was reflecting.

3:33

You've always been worried about, you know, concerned about the staff, concerned about customers, concerned about people and uh going through uh the pandemic and going through COVID.

3:43

I just really appreciate your leadership through all that.

3:48

Man, I I would just like to say um thank you for helping make my first year transition easy, and thanks for setting a great example for me to follow, or you know, so I appreciate that.

4:00

And it's been fun watching you.

4:02

Thanks.

4:06

I had I think the most to gain from you being on the board.

4:10

I'm grateful for um your participation in the recruitment and helping bring me to Rochester.

4:17

Um, this is a wonderful team that I've joined, and uh just deeply appreciative to you and your family for welcoming us as well.

4:27

And I wish that we had a purview broader than the boardroom as well, because your influence in the community extends well beyond the boardroom here in Rochester Public Utilities with your contributions elsewhere.

4:38

So I'd like to recognize you as well for that for what you do outside of the boardroom as well.

4:43

There's a lot of people in this room who have benefited from your leadership development and your contributions in the community.

4:52

Thank you, everybody so much for your kind words.

4:55

Um I was not expecting to get a little emotional, but I guess 10 years later.

5:00

Um this time with RPU has been very valuable to me.

Discussion Breakdown — Share of Meeting
Technology and Innovation█████████████████████████████████33%
Energy Independence████████████████████20%
Procedural███████████11%
Fiscal Sustainability█████████9%
Engineering And Infrastructure███████7%
Personnel Matters████4%
Customer Relations████4%
Data Management████4%
Public Safety███3%
Summary of Proceedings

Rochester Public Utilities Board Meeting - December 17, 2025

The Rochester Public Utilities Board convened on the evening of December 17, 2025, to honor the departing President Melissa Grainer Johnson, review routine consent items, and make significant strategic decisions regarding the enterprise resource planning (ERP) system, transmission investments, and energy storage contracts. The meeting featured presentations on the utility's new customer portal, benchmarking compliance, and operational metrics, followed by a call to adjourn with board members expressing strong support for the initiatives presented.

Consent Calendar

  • Approved the minutes from the November 25, 2025, board meeting.
  • Approved the review of the accounts payable listing.
  • Approved the rejection of bids for the construction of the Ponderosa Pines Booster Station (Project 2025-15).
  • Approved the 2026 hourly power line clearance tree services contract rate schedule.

Public Comments & Testimony

  • No members of the public registered to provide oral testimony during the open comment period.

Discussion Items

  • Recognition of Melissa Grainer Johnson: The board honored outgoing President Melissa Grainer Johnson for her 10-year tenure (2016-2025), recognizing her leadership in financial stewardship, rate stability, and governance. Councilmember Keane noted her specific focus on staffing and bringing in a new general manager, while Board Member Tori and others expressed gratitude for her mentorship and community influence. Grainer Johnson expressed emotional gratitude for her service, stating the 10-year period was "very valuable."
  • Safety Moment (E-Bikes): Safety Manager Mr. Cook warned the public about the rise of "e-motos" sold online that do not meet the legal definition of electric bicycles in Minnesota (750-watt limit, 28 mph cap, functional pedals). He cautioned that these vehicles are often uninsurable, cannot be legally registered, and pose significant safety risks, advising residents to purchase from bicycle shops rather than online retailers.
  • 2026 Power Line Clearance Tree Services Bid: The board reviewed bids for lump sum power line clearance services. Mr. Stiller explained that the work is awarded on a split basis per feeder (approx. 50 total), with the lowest bidder selected per circuit. Bids from Aspen Tree Service and New Age Tree Service were reviewed; Aspen was awarded one of the feeders and New Age was awarded the remaining five. Costs were noted to be slightly up year-over-year (3-3.5%), aligned with labor agreements.
  • Enterprise Resource Planning (ERP) Implementation: Director of Corporate Relations Mr. Hogan and Mr. Nichols detailed the recommendation to adopt the SAP S/4 HANA system via HCL Tech for both the City and the Utility. Key discussion points included:
    • The project aims to integrate Human Resources, Finance, Asset Management, and Budgeting into a single "source of truth."
    • The budget for the RPU portion was updated to $15.5 million, an increase of $3.5 million over the initial $11.9 million approval, driven by the addition of a dedicated project manager, increased contingent funds (adjusted to 20%), and implementer travel costs.
    • Staff confirmed that while costs may scale with user headcount in the Software-as-a-Service model, the transition is planned to minimize unexpected overages. Councilmember Keene inquired about inventory management and FERC reporting capabilities, receiving confirmation that these are fully supported within the SAP environment.
  • Grid North Partners Joint Development Agreement (Mankato Transmission): Director of Power Delivery Mr. Scott Nichols and SME Randy presented the proposal to enter a Joint Development Agreement to invest $28.84 million in the Mankato to Mississippi River transmission project. Key positions discussed included:
    • The project offers full FERC-approved rate recovery, including 100% protection for abandoned plant costs if the project is cancelled.
    • Financial risks were deemed mitigated, with the primary risk being potential cost overages not covered by the fixed portion of the investment.
    • Councilmember Keene expressed concern regarding delegated authority for non-substantive changes; the City Attorney reassured the board that material changes regarding price or liability would require full approval.
  • SimPA Battery Storage Letter of Agreement: Director of Power Resources Mr. Bullock presented a request to authorize a side letter agreement with SimPA to treat battery charging as "negative generation" and discharging as "positive generation" for market arbitrage purposes. This allows the utility to charge during low-price periods and discharge during high-price periods.
    • Board members confirmed their understanding that the battery operates behind the meter, requiring mathematical adjustments to the "town gate" meter reading to comply with the SimPA power sales contract.
  • Customer Relations Updates (Benchmarking & Portal): Director of Customer Relations Patty Hansen presented:
    • Benchmarking: The utility successfully implemented the MyMeter platform and hired a commercial energy advisor. Of 137 required buildings, 86 are compliant, while 51 are outstanding due to data discrepancies and gas company reporting delays. Outreach efforts continue.
    • Customer Portal: The new portal (powered by Vertex One/VConnect) went live on November 5, 2025, replacing the legacy SEW platform. Over 58,000 customers have registered, demonstrating high engagement and new features like 16-language support and real-time outage mapping.

Key Outcomes

  • Resolution Passed: Approved signed resolution recognizing Melissa Grainer Johnson's service (Packet Page 5).
  • Resolution Passed: Approved the 2026 lump sum power line clearance tree services contract (Packet Page 29).
  • Resolution Passed: Approved the amendment to the 2026-2027 budget for the ERP project ($15.5 million) and authorized the General Manager and City Administrator to negotiate and execute related contracts (Packet Page 32).
  • Resolution Passed: Approved the resolution to proceed with the Grid North Partners Joint Development Agreement for the Mankato transmission project (Packet Page 10).
  • Resolution Passed: Approved the letter of agreement with SimPA regarding battery charging and discharging treatment (Packets Pages 114 and 115).
  • Motion: Formed an ad hoc group to review safety policies, with Councilmember Keene volunteering for the group.
  • Appointment: Board President McCullough welcomed Kelsey (appointed by the Mayor/Council) to the board, set to join on January 13, 2026.
  • Adjournment: The meeting was adjourned at 4:00 PM following a motion by Councilmember Keene and a second by Board Member Tori.

Meeting Transcript

It is 4 p.m. and this meeting of the Rochester Public Utilities Board is now called to order. The first item on the agenda is of course the approval of the agenda. May I have a motion and second to approve the agenda as presented. I'll move approval of the agenda. Second. We have a motion and a second. All in favor, please signify by saying aye. Aye. Aye. Aye. Any opposed? The agenda is approved. And now it's we come to the most bittersweet part of the meeting tonight. Um section number two, a special recognition of Melissa Grainer Johnson. I'm gonna take a tiny point of privilege. I first met Melissa when it her name was Missy Grainer, and uh that was way back in the summer of uh 2020, I think, or 2021 or 2001. Sorry. And uh man, it's uh been a long time, but uh here we are. Um I'm gonna read this short uh uh recognition. Um tonight we recognize and thank Melissa Grainer Johnson for her service on the Rochester Public Utilities Board as she concludes her time. Melissa has served on the RPU board since 2016, including in leadership roles as vice president and president throughout her tenure. She brought a strong sense of financial stewardship and governance responsibility to every discussion and decision. Melissa consistently focused the board on long-term sustainability, rate stability, and accountability. She has thoughtful probing questions, emphasized clear analysis, and ensured that commitments were well understood and followed through. Her leadership strengthened both the quality of our discussions, our decisions, and the culture of the board. As board president, Melissa guided the board with professionalism, integrity, and respect, reinforcing the importance of fiduciary duty in public service. On behalf of the board, RPU leadership, and the community we serve, we thank Melissa for her dedication and lasting contributions. And at this time, it is my honor to present Melissa with a signed resolution recognizing her years of service and leadership on the Rochester public utilities board. May I have a motion to approve the resolution on board packet page five. I'm honored to move to approve the resolution. We have a motion. And a second. It's been moved and seconded. Any further discussion. Councilmember. Thank uh Malachi for the nice thing. The one thing that I would add in there when I heard like a governance and stewardship and fiscal responsibility and sustainability was also staffing and this idea of do we have the right people in the right jobs? And I thought that's a special set of attention that Melissa brought, especially in this time to bringing in a new general manager, and I really appreciated it. Yeah, and I I would just kind of along those lines. I really appreciate your your words on that. Melissa, thank you. Um, I know we've been on the board. You you helped to onboard me onto the board um about seven years ago. I really appreciate your leadership. And along those lines, as uh councilman Keane said, I I just was reflecting. You've always been worried about, you know, concerned about the staff, concerned about customers, concerned about people and uh going through uh the pandemic and going through COVID. I just really appreciate your leadership through all that. Man, I I would just like to say um thank you for helping make my first year transition easy, and thanks for setting a great example for me to follow, or you know, so I appreciate that. And it's been fun watching you.

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