PUBLIC HEARING OF THE
    BOARD OF WATER, ELECTRIC,
    AND COMMUNICATIONS TRUSTEES
    OF THE CITY OF MUSCATINE, IOWA
    APRIL 30,2013-5:26 P.M.
    The Board of Trustees conducted a public hearing in Muscatine Power and Water's
    Administration/Operations
    Building, 3205 Cedar Street, Muscatine, Iowa, on Tuesday, April 30th
    at 5:26p.m.
    Chairperson Heidbreder called the public hearing to order. Members of the Board were present
    as follows: Trustees Tracy McGinnis, Scott lngstad, Joan Axel, and Warren Heidbreder.
    Also present were Sal LoBianco, General Manager of Muscatine Power and Water; Duane J.
    Goedken, Board Attorney; Charles Potter, Muscatine Journal; Erika Cox, Brandy Olson, Tim
    Reed, Gage Huston, and Brenda Christensen of Muscatine Power and Water.
    The purpose of the public hearing was to receive any citizens' comments regarding the A/0
    North Parking Lot- Phase 2 Project.
    Ms. Christensen, the acting Board Secretary, opened the public hearing at 5:26p.m. to receive
    any citizens' comments regarding the A/0 North Parking Lot- Phase 2 Project.
    Ms. Christensen stated that no written or oral comments were received regarding this project,
    and that the public hearing notice was published as required by the Code of Iowa.
    A resolution passed approving the final plans and specifications of the project.
    RESOLUTION 13-07
    WHEREAS, the Board of Water, Electric, and Communications Trustees of the
    City of Muscatine, Iowa has given tentative approval to plans and specifications
    for the A/0 North Parking Lot- Phase 2 Project; and,
    WHEREAS, bids have been received and there are no written or oral objections
    to proceeding
    with this project; now therefore,
    BE IT RESOLVED, by the Board of Water, Electric, and Communications Trustees
    of the City of Muscatine, Iowa, that the plans and specifications for the A/0
    North Parking Lot- Phase 2 Project be adopted.
    Trustee
    lngstad moved, seconded by Trustee McGinnis, that the said resolution should be
    passed, approved, and adopted this 30thth day of April 2013. On roll call Trustees Axet lngstad,
    McGinnis, and Heidbreder voted aye. Voting nay, none. Resolution carried.

    At 5:27 the Secretary closed the public hearing for the A/0 North Parking Lot- Phase 2 Project.
    BOARD
    OF WATER, ELECTRIC, AND
    COMMUNICATIONS TRUSTEES OF
    CITY OF MUSCATINE, IOWA
    Brenda K. Christensen
    Acting Board Secretary

    PUBLIC HEARING OF THE
    BOARD OF WATER, ELECTRIC,
    AND COMMUNICATIONS TRUSTEES
    OF THE CITY OF MUSCATINE, IOWA
    APRIL 30, 2013-5:28 P.M.
    The Board of Trustees conducted a public hearing in Muscatine Power and Water's
    Administration/Operations
    Building, 3205 Cedar Street, Muscatine, Iowa, on Tuesday, April
    30th at 5:28p.m.
    Chairperson Heidbreder called the public hearing to order. Members of the Board were
    present
    as follows: Trustees Doyle Tubandt, Tracy McGinnis, Scott lngstad, Joan Axel, and
    Warren Heidbreder.
    Also present were Sal LoBianco, General Manager of Muscatine Power and Water; Duane J.
    Goedken, Board Attorney; Charles Potter, Muscatine Journal; Erika Cox, Brandy Olson, Tim
    Reed, Gage Huston, and Brenda Christensen of Muscatine Power and Water.
    The purpose of the public hearing was to receive any citizens' comments regarding the
    Progress Park Treatment 24" Bypass Construction Project.
    Ms. Christensen, the acting Board Secretary, opened the public hearing at 5:28 p.m. to
    receive any citizens' comments regarding the
    Progress Park Treatment 24" Bypass
    Construction Project.
    Ms. Christensen stated that no written or oral comments were received regarding this
    project,
    and that the public hearing notice was published as required by the Code of Iowa.
    A resolution passed approving the final plans and specifications of the project.
    RESOLUTION 13-08
    WHEREAS, the Board of Water, Electric, and Communications Trustees of the
    City of Muscatine, Iowa has given tentative approval to plans and
    specifications
    for the Progress Park Treatment 24" Bypass Construction
    Project; and,
    WHEREAS, bids have been received and there are no written or oral
    objections to proceeding with this project; now therefore,
    BE IT RESOLVED, by the Board of Water, Electric, and Communications
    Trustees
    of the City of Muscatine, Iowa, that the plans and specifications for
    the Progress Park Treatment 24" Bypass Construction Project be adopted.

    Public Hearing Minutes
    April
    30, 2013
    Page 2 of2
    Trustee Axel moved, seconded by Trustee McGinnis, that the said resolution should be
    passed, approved, and
    adopted this 30thth day of April 2013. On roll call Trustees Axel,
    lngstad,
    McGinnis, Tubandt, and Heidbreder voted aye. Voting nay, none. Resolution carried.
    At 5:29
    the Secretary closed the public hearing for the Progress Park Treatment 24" Bypass
    Construction
    Project.
    BOARD OF WATER, ELECTRIC, AND
    COMMUNICATIONS TRUSTEES OF
    CITY OF MUSCATINE, IOWA
    Brenda K. Christensen
    Acting Board Secretary

    OFFICIAL PROCEEDINGS OF THE
    BOARD OF WATER, ELECTRIC,
    AND COMMUNICATIONS TRUSTEES
    OF THE CITY OF MUSCATINE, IOWA
    APRIL 30, 2013-5:30 P.M.
    The Board of Trustees met in regular session at Muscatine Power and Water's
    Administration/Operations Building,
    3205 Cedar Street, Muscatine, Iowa, on Tuesday, April
    30, 2013, at 5:30p.m.
    Chairperson
    Warren Heidbreder called the meeting to order. Members of the Board were
    present
    as follows: Trustees Doyle Tubandt, Tracy McGinnis, Scott lngstad, Joan Axet and
    Warren Heidbreder.
    Also present were Sal LoBianco, General Manager of Muscatine Power and Water; Duane
    Goedken, Board Attorney; Charles Potter, Muscatine Journal; Brandy Olson, Tim Reed, Gage
    Huston, Erika Cox, and Brenda Christensen of Muscatine Power and Water (MP&W).
    Chairperson
    Heidbreder asked if there was anyone in attendance who wished to make any
    public comments. There were no public comments.
    The minutes of the March 28, 2013, regular meeting were presented as previously submitted
    to
    all Board members in written form. Trustee Axel moved, seconded by Trustee McGinnis,
    that
    the March 28, 2013, meeting minutes be approved as submitted. After discussion, all
    Trustees present voted aye. Motion carried. Meeting minutes of the March 20, 2013, and
    March 28, 2013, Audit/Finance Committee Meetings were received and placed on file.
    The list of expenditures and transactions for March 2013 was presented as previously sub-
    mitted
    to all Board members in written form. After review and discussion of the
    expenditures, Trustee
    lngstad moved, seconded by Trustee Tubandt to ratify payment of
    $3,663,125.96
    for the Electric Utility, $302,973.26 for the Water Utility, and $787,090.63 for
    the Communications Utility,
    for a cumulative total of $4,753,189.85. All Trustees present
    voted aye. Motion carried.
    Mr. LoBianco reviewed the previously submitted memorandum
    to all Board members
    regarding the receipt and evaluation
    of bids for the A/0 North Parking Lot Concrete Repairs
    - Phase 2 Project; this project was approved with the 2013 Operating Budget. Specifications
    pertaining
    to the subject were mailed to twenty-three {23) potential bidders. A total of nine
    (9) bids were received, opened publicly, and read aloud on April 4, 2013. The total approved
    expenditure
    for this project is $192,500; with a published estimate of $173,250. The bids
    were reviewed
    and conformance of the low bidder to the specifications was established.
    MP&W Management recommended that the low bidder, Heuer Construction, Inc. of
    Muscatine, Iowa, be awarded the contract for A/0 North Parking Lot Concrete Repairs -
    Phase 2 Project for the total contract price of $170,330.43, which included a $9A99.75
    increase to the base bid
    for additional work. After review of the project, the following
    resolution
    was submitted:

    Board Minutes
    April 30, 2013
    Page 2 of9
    RESOLUTION 13-09
    WHEREAS, it appears in a written report from Muscatine Power and Water
    Management
    that the bid for the A/0 North Parking Lot Concrete Repairs- Phase 2
    Project,
    as submitted by Heuer Construction, Inc. of Muscatine, Iowa, in the amount
    of
    $170,330.43,
    was the best and lowest bid received; now therefore,
    BE IT RESOLVED by the Board of Water, Electric, and Communications Trustees of
    the City of Muscatine, Iowa, that the proposal from Heuer Construction, Inc. of
    Muscatine, Iowa, in the amount of
    $170,330.43
    for the A/0 North Parking Lot
    Concrete Repairs- Phase 2 Project was hereby accepted as submitted; and,
    BE IT FURTHER RESOLVED, that the General Manager and Secretary of the Board
    were hereby authorized, empowered, and directed
    to execute a contract in the sum
    approved by
    the Board of Water, Electric, and Communications Trustees.
    Trustee
    Axel moved, seconded by Trustee Tubandt, that the resolution should be
    passed, approved, and adopted this
    30th
    day of April
    2013.
    On roll call Trustees Tubandt,
    McGinnis,
    lngstad, Axel, and Heidbreder voted aye. Voting nay, none. Resolution
    carried.
    Mr. LoBianco reviewed
    the next agenda item previously submitted to all Board members
    regarding the receipt and evaluation
    of bids for the Progress Park Treatment
    24"
    Bypass
    Construction -
    2013
    Project; this project was approved with the
    2013
    Operating Budget.
    Specifications pertaining
    to the subject were mailed to twenty
    (20)
    potential bidders. A total
    of five
    (5)
    bids were received, opened publicly, and read aloud on April
    2, 2013.
    The total
    approved expenditure for this project is
    $442,200
    with a published estimate of
    $397,980.
    The bids were reviewed and conformance of the low bidder to the specifications was
    established. MP&W Management recommended that the low bidder, Sulzberger Excavating,
    Inc. of Muscatine, Iowa, be awarded the contract for Progress Park Treatment
    24"
    Bypass
    Construction -
    2013
    Project for the total contract price of
    $417,162.23,
    which included an
    option amounting to
    $5,000
    increase to the base bid. After review of the project, the
    following resolution was submitted:
    RESOLUTION 13-10
    WHEREAS, it appears in a written report from the Muscatine Power and Water
    Management
    that the bid for the Progress Park Treatment
    24"
    Bypass Construction
    - 2013
    Project, as submitted by Sulzberger Excavating, Inc. of Muscatine, Iowa, in
    the amount
    of
    $417,162.23,
    was the best and lowest bid received; now therefore,
    BE IT RESOLVED by the Board of Water, Electric, and Communications Trustees of
    the City of Muscatine, Iowa, that the proposal from Sulzberger Excavating, Inc. of
    Muscatine, Iowa, in the amount of
    $417,162.23
    for the Progress Park Treatment
    24"
    Bypass Construction-
    2013
    Project was hereby accepted as submitted; and,

    Board Minutes
    April 30, 2013
    Page 3 of9
    BE IT FURTHER RESOLVED, that the General Manager and Secretary of the Board
    were hereby authorized, empowered,
    and directed to execute a contract in the sum
    approved by the Board of Water, Electric, and Communications Trustees.
    Trustee McGinnis moved, seconded by Trustee
    lngstad, that the resolution should be
    passed, approved, and adopted this 30th day of April 2013. On roll call Trustees
    Axel, lngstad, McGinnis, Tubandt, and Heidbreder voted aye. Voting nay, none.
    Resolution carried.
    The next item on the agenda was approval of the NPDES Thermal 316(a) Variance Request
    Demonstration Studies
    Project with an expenditure of $340,000. Mr. LoBianco stated that
    MP&W will challenge onerous cooling water temperature discharge limits that are being
    imposed
    on MP&W generating units by Iowa Department of Natural Resources (IDNR) in the
    National Pollutant Discharge Elimination System (NPDES) renewal permit. Clean Water Act
    regulations require certain data and studies be conducted to justify variation from the limits
    set forth in the new NPDES permit. Mr. LoBianco continued that this project will utilize the
    services
    of a consultant to perform a number of tasks necessary to justify the variance
    request,
    including thermal plume studies, fish sampling and comparison of such data to prior
    sampling, mussel studies, and hydrothermal modeling, with the goal being to prove that the
    temperature
    limits in the new NPDES permit are more stringent than necessary to protect
    the indigenous
    shellfish and fish in the Mississippi River. After review and discussion, Trustee
    Tubandt
    moved, seconded by Trustee lngstad, to. approve the NPDES Thermal 316{a)
    Variance Request Demonstration Studies
    Project. All Trustees present voted aye. Motion
    carried.
    Mr. LoBianco introduced the next item
    on the agenda as approval of Unit 8A Turbine and
    Gear Reducer Overhaul Project with an expected expenditure of $500,000 to perform a
    routine
    overhaul of the Unit 8A turbine & gear reducer. This project was originally scheduled
    to take place in May 2014; however, MP&W Staff has recently identified some significant
    degradation
    of operational efficiency on the turbine. Due to these operational concerns,
    MP&W Management is recommending that this overhaul be completed in May 2013, one
    year ahead
    of the original schedule. A project that was approved and scheduled with the
    2013 Operating Budget to perform an overhaul of the Unit 8A generator in 2013 costing
    $127,000 will be postponed until May 2014, therefore increasing the Electric Utility's
    operating expenses by $373,000 for 2013. After review and discussion, Trustee Axel moved,
    seconded
    by Trustee McGinnis, to approve the Unit 8A Turbine and Gear Reducer Overhaul
    Project. All
    Trustees present voted aye. Motion carried.
    The next item on the agenda was a Recommendation for Final Acceptance for the Construct
    Well
    43 at Grandview Well Field- 2012 Project. Mr. LoBianco told the Board that this project
    was approved at the July 31, 2012 Board meeting with an estimated expenditure of
    $250,000 and awarded to Northway Corporation. Work covered by this contract is complete
    and has been reviewed by MP&W Management and found to be in accordance with the
    specifications. A
    Contract Change Order was submitted and MP&W Management
    recommends
    approval by the Board of Trustees for a net increase in the amount of

    Board Minutes
    April30, 2013
    Page 4 of9
    $1,311.40,
    for a new final contract price of
    $198,147.65.
    MP&W Management recommends
    proceeding
    with final acceptance and release of retainage.
    After discussion and review,
    the following resolutions were submitted:
    RESOLUTION 13-11
    WHEREAS, Contract Change Order No. 1 has been prepared for the Construct Well
    43
    at Grandview Well Field-
    2012
    Project in the increased amount of
    $1,311.40
    and
    said Contract Change Order was reviewed by the Board, and Muscatine Power and
    Water Management
    has recommended approval of said Contract Change Order;
    now therefore,
    BE IT RESOLVED, by the Board of Water, Electric, and Communications Trustees that
    said Contract Change Order in the increased amount of
    $1,311.40
    be approved for
    an amended contract price of
    $198,147.65
    for the Construct Well
    43
    at Grandview
    Well Field -
    2012
    Project.
    Trustee Axel moved, seconded by Trustee lngstad, that said resolution be passed, approved,
    and adopted this
    30th
    day of April
    2013.
    On roll call, Trustees Tubandt, McGinnis, lngstad,
    Axel,
    and Heidbreder voted aye. Voting nay, none. Resolution carried.
    RESOLUTION 13-12
    WHEREAS, it appears in a written report from Muscatine Power and Water
    Management
    that the contract with Northway Corporation for the Construct Well
    43
    at Grandview Well Field-
    2012
    Project in the final amount of
    $198,147.65
    has been
    substantially completed in accordance with
    the project specifications and the rec-
    ommendation has been made
    that said contract be accepted by the Board of Water,
    Electric, and Communications Trustees
    of the City of Muscatine, Iowa; now
    therefore,
    BE IT RESOLVED, by the Board of Water, Electric, and Communications Trustees of
    the City of Muscatine, Iowa, that the Construct Well
    43
    at Grandview Well Field -
    2012
    Project, furnished under the above named contract be accepted and approved
    by the Board; and,
    BE IT FURTHER RESOLVED, that five percent (5%) of the contract price be retained
    for a period
    of thirty-one
    (31)
    days from and after the date of resolution, all in accor-
    dance with the provisions of the Code of Iowa.
    Trustee Axel moved, seconded by Trustee lngstad, that said resolution be passed, approved,
    and adopted this
    30th
    day of April
    2013.
    On roll call, Trustees Axel, lngstad, McGinnis,
    Tubandt, and Heidbreder voted
    aye. Voting nay, none. Resolution carried.
    The next item on the agenda was a recommendation to approve a revised project summary
    form
    for the ISP Core Network Enhancement Project for
    $161,800;
    this project was originally
    submitted in
    2012
    to upgrade the ISP Core Network for a total project cost of
    $35,500.
    Mr.

    Board Minutes
    April30, 2013
    Page 5
    of9
    LoBianco explained that the project is necessary to upgrade the core network to provide full
    redundancy, increased capacity to between network devices to meet current bandwidth
    needs and provide future expansion
    capability, and to support other network devises. Upon
    a thorough review
    of our network by a consultant, an RFP was issued to perform the
    necessary network upgrade; responses
    to the RFP resulted in higher project costs than
    originally anticipated. The original project scope has changed to include the addition of two
    gateway routers and professional installation services. The addition of the gateway routers
    was a recommendation to meet 'best network practices' in order to provide network
    resiliency and redundancy. To offset the additional costs for this project, other capital
    projects will be deferred to ensure that the overall Communications capital budget will not
    be exceeded. After additional discussion, Trustee McGinnis moved, seconded by Trustee
    lngstad, that the revised project summary form for the ISP Core Network Enhancement
    Project be approved in the amount of $161,800. All Trustees present voted aye. Motion
    carried.
    Mr. LoBianco introduced the next agenda item, asking the Board
    to approve a revised
    project summary form
    for the PM
    2.5
    Reduction Projects with an expenditure of $120,000. A
    project
    was previously approved with the 2013 Operating Budget entitled "#8 Bottom Ash
    Haul Road Paving (PM
    2.5
    Requirement)" to pave a roadway near the Unit 8 Bottom Ash pile
    to reduce the modeled fugitive PM
    2.5
    in this area. Since the time of project approval, MP&W
    Management have been working with IDNR to finalize PM
    2
    .s
    emission modeling. As a result
    of these efforts, MP&W will be pursuing some additional PM
    2.5
    reduction modifications at
    the
    Plant site. These additional modifications have been rolled into the original project, thus
    requiring a revision
    to the project costs and title. The revision will result in an increase of
    project cost from $50,000 to $120,000, or an increase of
    $70,000.
    After additional
    discussion, Trustee
    lngstad moved, seconded by Trustee Axel, that the revised project
    summary form
    for the PM
    2.5
    Reduction Projects be approved in the amount of $120,000. All
    Trustees present voted aye. Motion carried.
    Mr. LoBianco stated
    that the next item on the agenda was to approve an electric rate
    adjustment
    for 2013 and 2014. He reminded the Board that at the March Board of Trustees
    meeting,
    MP&W Management, along with Russ Hissom of Baker Tilly Virchow Krause, LLP
    (BTL presented the results of the Cost of Service/Rate Design Study with a recommendation
    that a revenue adjustment of four percent (4%) be implemented effective August 1, 2013
    and August 1, 2014, for Electric Utility customers. Mr. LoBianco continued that MP&W
    Management met with Industrial II Customers personally and all other Industrial Customers
    received a letter notifying them of the pending increase, including the reactivation of the
    Energy Adjustment
    Clause (EAC). After discussion and review, the following resolution was
    submitted:
    RESOLUTION
    13-13
    WHEREAS, certain studies have been made of the financial condition of the Electric
    Utility
    and presented to the Board of Water, Electric, and Communications Trustees
    for its consideration; and,

    Board Minutes
    April30, 2013
    Page 6 of9
    WHEREAS, the Board has reviewed these studies and determined that revenue
    increases are necessary
    to keep the Electric Utility in sound financial condition; now
    therefore,
    BE IT RESOLVED, by the Board of Water, Electric, and Communications Trustees of
    the City of Muscatine, Iowa that the electric revenue be increased by a four percent
    (4%) overall increase, effective with electric usage starting August 1, 2013, and
    August
    1, 2014; and,
    BE IT FURTHER RESOLVED, that the energy adjustment clause be reactivated
    effective August
    1, 2013 using a six-month rolling average; and,
    BE IT FURTHER RESOLVED, that said increases be effected by adoption of the rates
    proposed by Baker
    Tilly Virchow Krause, LLP (BT) Cost of Service/Rate Design Study
    dated March 2013, with modification recommended by BT in their April 8, 2013,
    memo; and,
    BE IT FURTHER RESOLVED, that proper notice be given to contract customers in
    accordance
    with the terms of the contracts.
    Trustee
    lngstad moved, seconded by Trustee Axel, that said resolution be passed, approved,
    and adopted this
    30th day of April 2013. On roll call, Trustees Tubandt, McGinnis, lngstad,
    Axet
    and Heidbreder voted aye. Voting nay, none. Resolution carried.
    Mr. LoBianco stated
    that the 2012 Muscatine Power and Water Annual Report has been
    completed and introduced Ms. Cox to present the report. Ms. Cox pointed out that the
    annual reports had been distributed to each of the Board members and asked if they had
    any questions about the report. She reminded the Board that Sycamore Printing was in the
    second year
    of a two year publication contract and that staff at Sycamore Printing were very
    good
    to work with, met all deadlines, and produced a quality report. She went on to explain
    how and to whom the annual report would be distributed to, including customer/owners
    and
    employees. Trustee lngstad moved, seconded by Trustee McGinnis, that the 2012
    Annual
    Report be received and placed on file as submitted. Motion c.arried. All Trustees
    present voted aye.
    Mr. LoBianco informed the Board that a public hearing will need to be held on the Issuance
    of Debt for the Electric Utility. He reminded the Board that in May of 2012 the Board
    entered into a
    $10M line of credit (LOC) with the three local banks. The LOC was entered
    into
    to provide backup liquidity, deemed necessary due to low operating/reserve cash and
    investment
    balances; that coupled with soft wholesale energy prices and a larger than
    anticipated
    coal pile inventory, tying up cash, necessitated backup liquidity. Thus far in 2013,
    liquidity
    conditions have improved significantly, primarily due to higher wholesale energy
    prices
    and volumes; with improved wholesale energy volumes, the coal inventory has
    reduced significantly from what it was in 2012, converting coal to cash. MP&W Management
    believes the LOC is still warranted for the Electric Utility, but should be reduced to $5 million.
    The lower LOC was discussed with the Audit Finance Committee at the March 28, 2013
    meeting and the committee concurred with the recommendation. After additional
    discussion, the following resolution was submitted:

    Board Minutes
    April30, 2013
    Page 7 of9
    RESOLUTION 13-14
    Resolution to fix a date for a public hearing on a loan agreement in a principal
    amount not to exceed $5,000,000
    WHEREAS, the City of Muscatine, in the County of Muscatine, State of Iowa
    (hereinafter referred to as the "City"), did heretofore establish the Municipal Electric
    Utility System (the "Electric System") in and for the City, which has continuously
    supplied electric
    light, power and energy service in and to the City and its
    inhabitants since its establishment;
    and
    WHEREAS, the Muscatine Power and Water Management and control of the Electric
    System are vested
    in the Board of Trustees of Water, Electric, and Communications
    (the
    "Board") of the City doing business as Muscatine Power and Water (the
    "Utility"); and
    WHEREAS, the Board proposes to cause the Utility to enter into a loan agreement
    (the
    "Loan Agreement") in a principal amount not to exceed $5,000,000, pursuant to
    the provisions
    of Section 384.24A of the Code of Iowa, for the purpose of funding
    costs
    and expenses, making improvements and operating the Electric System;
    NOW, THEREFORE, It is resolved by the Board, as follows:
    Section
    1.
    This Board shall meet on the 28th day of May, 2013, at the Muscatine
    Power and Water Administration Building, 3205
    Cedar Street, Muscatine, Iowa
    52761, at 5:28 p.m., at which time and place a hearing will be held and following the
    hearing, a meeting
    will be held at 5:30 p.m., at which meeting proceedings will be
    considered and action taken to enter into the Loan Agreement.
    Section
    2. The Board Secretary is hereby directed to give notice of the proposed
    action on the
    Loan Agreement setting forth the amount and purpose thereof, the
    time
    and place where the said meeting will be held, by publication at least once, and
    not less than 4 nor more than 20 days before the date of said meeting, in a legal
    newspaper which has a general circulation in the City. The notice shall be in
    substantially the following form:
    NOTICE OF PROPOSED ACTION TO INSTITUTE PROCEEDINGS
    TO ENTER INTO A LOAN AGREEMENT AND BORROW
    MONEY IN A PRINCIPAL AMOUNT NOT TO EXCEED $5,000,000
    (ELECTRIC
    REVENUE)
    The Board of Trustees of Water, Electric, and Communications (the "Board")
    of the City of Muscatine, Iowa (the "City") doing business as Muscatine Power
    and Water (the "Utility"), Muscatine, Iowa, will meet on the 28th day of May,
    2013, at the Muscatine Power and Water Administration Building, 3205
    Cedar
    Street, Muscatine, Iowa 52761, at 5:28p.m., at which time and place a
    hearing
    will be held and following the hearing, a meeting will be held at 5:30
    p.m., at which meeting proceedings will be considered and action taken to
    enter into a loan agreement (the "Loan Agreement") and borrow money in a

    Board Minutes
    April
    30,2013
    Page 8 of9
    principal amount not to exceed $5,000,000, for the purpose of funding costs
    and expenses, making improvements and operating the municipal electric
    utility system.
    The Loan Agreement will not constitute a general obligation of the City, nor
    will it be payable in any manner by taxation, but will be payable solely and
    only from the net revenues
    of the Utility.
    The Loan Agreement is proposed to be entered into pursuant to authority
    contained
    in Section 384.24A of the Code of Iowa.
    At the time and place set out above, oral or written objections may be filed or
    made to the proposal to enter into the Loan Agreement. After receiving
    objections, the
    Board may determine to enter into the Loan Agreement, in
    which case, the decision will be final unless appealed to the District Court
    within fifteen {15} days thereafter.
    By order of the Board of Water, Electric, and Communications Trustees of the City
    of Muscatine, Iowa.
    Donald W. Kerker
    Board Secretary
    Section 3. All resolutions or parts of resolutions in conflict herewith are hereby
    repealed to the extent of such conflict.
    Trustee Axel moved, seconded by Trustee Tubandt, that said resolution recommending a
    public hearing for the 2013 Electric Utility Financing be set for 5:28pm on May 28, 2013, be
    passed, approved, and adopted this 30th day of April 2013. On roll call, Trustees Tubandt,
    McGinnis,
    lngstad, Axel, and Heidbreder voted aye. Voting nay, none. Resolution carried.
    In the General Manager's report, Mr. LoBianco reviewed his previously submitted memo-
    randum
    that included Ms. Olson's APPA Legislative Rally update.
    The YTD and March Financial Operating Statements and Balance Sheets were presented as
    previously submitted to all Board members in written form. Mr. LoBianco stated that
    financials would be covered in the Key Performance Indicators presentation. Trustee Axel
    moved, seconded by Trustee Tubandt, to receive and place on file the YTD and March
    Financial Operating Statements and Balance Sheets for the Water, Electric, and
    Communications
    Utilities and the Quarterly Investment Report. All Trustees present voted
    aye. Motion carried.
    The Quarterly Project Status Report and Variance Analysis were presented as previously
    submitted
    to all Board members in written form. Trustee Axel moved, seconded by Trustee
    McGinnis,
    to receive and place on file the Quarterly Project Status Report and Variance
    Analysis. All Trustees present voted aye. Motion carried.
    The Critical Issues and Key Performance Indicators for the Water, Electric, and Communi-
    cations Utilities were previously submitted to all Board members in written format. Mr.
    LoBianco asked each
    critical issue leader to review the status of their critical issue and stated

    Board Minutes
    April 30, 2013
    Page 9 of9
    that he would review the key performance indicators. After review and discussion, Trustee
    Tubandt moved, seconded by Trustee
    Axel, to receive and place on file the First Quarter
    2013
    Critical Issues and Key Performance Indicators for the Water, Electric, and Com-
    munications Utilities. All Trustees present voted aye. Motion carried.
    The
    Competitive Quotes for Public Improvements Report was presented as previously
    submitted to all Board members in written form. There were no items for approval.
    The March departmental reports were presented as previously submitted to all Board
    members in
    written form. Trustee McGinnis moved, seconded by Trustee Tubandt, to
    receive and place on file the March departmental reports. All Trustees present voted aye.
    Motion carried.
    The meeting
    of the Board of Trustees was adjourned at 7:20p.m.
    BOARD OF WATER, ELECTRIC, AND
    COMMUNICATIONS TRUSTEES OF
    THE CITY OF MUSCATINE, IOWA
    ( __
    \\~:;\
    '>
    Brenda K. Christensen
    Acting Board Secretary

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