RPU BOARD MEETING MINUTES February 26, 2002

Members Present: Mr. Toulouse, Mr. Landwehr, Mr. Hunziker, * Mr. Bourgeois, and Mr. Utz

Absent: None

Also Present: *Mr. Adkins, City Attorney

Board President Landwehr called the meeting to order at 4:00 p.m.

1. Mr. Toulouse moved to approve the minutes of the January 31, 2002 meeting as amended, seconded by Mr. Hunziker. All voting “AYE”

2. Mr. Utz moved to approve the accounts payable report, seconded by Mr. Hunziker. All voting “AYE”

3. Ms. Laura Andrews, Olmsted County & City of Rochester Diversity Program Committee member, appeared before the Board to discuss the “Outstanding Women in Leadership Roles” Award and upcoming luncheon on March 26. This event recognizes women as strong contributors to our workforce.

4. Board President Landwehr recommended the following appointments to serve as board-management liaison for the functions listed below:

Finance, Accounting and Audit – Mr. Bourgeois

Communications – Mr. Hunziker

Strategic Planning – Mr. Landwehr

Operations and Administration – Mr. Toulouse

Policy – Mr. Utz

5.a. Mr. Hunziker moved to approve a contract amendment for the construction of municipal Well 37 with Thein Well Company in the amount of $188,990.00, seconded by Mr. Toulouse. All voting “AYE”

BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve a contract agreement with Thein Well Company, and authorize the Mayor and the City Clerk to execute the agreement for Construction of Municipal Well 37

The amount of the contract agreement to be ONE HUNDRED EIGHTY EIGHT THOUSAND NINE HUNDRED NINETY AND 00/100 DOLLARS ($188,990.00) and Thein Well Company being lowest responsible bidder.

5.b. After discussion of the lead times used by staff in evaluating the wire and cable bids, Mr. Hunziker moved to approve en bloc three resolutions for cable and wire, seconded by Mr. Toulouse. All voting “AYE”

BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve a purchase order agreement with Hendrix for Cable and Conductor

Item # Description

19 Wire in Duct, AL, 15kV, 1/0 Str., 1/C

The amount of the purchase order agreement to be EIGHTY-TWO THOUSAND THREE HUNDRED FIFTY AND 00/100 DOLLARS ($82,350.00) and Hendrix being lowest responsible bidder.

BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve a purchase order agreement with WESCO for Cable and Conductor.

Item # Description

11 Wire, ACSR, 1/0, 6/1, Raven

12 Wire, ACSR, 4/0, 6/1, Penquin

17 Wire, AL, 15kV, 1/0 Str, 1/C

The amount of the purchase order agreement to be SIXTY-ONE THOUSAND THREE HUNDRED FIFTY-THREE AND 61/100 DOLLARS ($61,353.61) and WESCO being lowest responsible bidder.

BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve a purchase order agreement with Border States Electric for Cable and Conductor.

Item # Description

5 Wire, Copper, 600V, #12 Sol, THHN, White

6 Wire, Copper, 600V, #12 Sol, THHN, Black

10 Wire in Duct, AL, 600V, 4/0-2/0 Tri Urd

13 Wire, ACSR, 556, 18/1, Osprey

18 Wire, Copper, 15kV, 500 MCM Str.

The amount of the purchase order agreement to be ONE HUNDRED TWENTY-SEVEN THOUSAND ONE HUNDRED AND 54/100 DOLLARS ($127,100.54) and Border States Electric being lowest responsible bidder.

6a & b Mr. Hunziker moved to approve en bloc two resolutions with Utilicorp United Inc. for natural gas for RPU’s Silver Lake Power Plant, seconded by Mr. Bourgeois. All voting “AYE”

BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve a contract amendment with Utilicorp United Inc., and to request the Mayor and the City Clerk to execute the agreement for

July 1,2001 through June 30, 2004 Addendum to

Gas Transportation Agreement Executed in April 1998

The amount of the contract to be a Daily & Monthly Balancing Fee of $.10 MMBtu of gas delivered to the Silver Lake Plant.

7. The proposed purchase of a parcel for a proposed municipal well site was discussed. Staff stated that the site was needed due to the City’s growth. Mr. Toulouse moved to approve the purchase of the southeast municipal well site, and acquisition of the two related easements and the access permit, seconded by Mr. Bourgeois. All voting “AYE”

BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve the purchase of the southeast municipal well site, two related easements and an access permit from Christ Lutheran Church Unaltered Augsburg confession of Olmsted County, Inc., for Twenty-Thousand Dollars ($20,000.00) and authorize the Mayor and the City Clerk to execute the purchase agreement for Southeast Municipal Well Site, Two Related Easements and Access Permit

8. Mr. Koshire provided the following report to the Board:

a. Staff attended the Minnesota Municipal Utilities Association’s (MMUA) legislative rally in St. Paul and met with legislative leadership.

b. The Directors and Officers Insurance Policy for the Board was discussed. The plan providers are the National League of Cities Insurance Trust and AEGIS. Mr. Adkins stated that $1,000,000 is the statutory limit for public officials.

c. The cash flow reserve policy and RPU’s current cash flows were discussed. Mr. Koshire stated the 2002 budget has been set at the minimum cash reserves. Mr. Landwehr requested staff to bring this topic to the March 26, 2002 board meeting along with various revenue adjustment and bonding scenarios for further discussion.

* Mr. Bourgeois and Mr. Adkins left the meeting at this time.

9. The management/financial reports were discussed.

10. Mr. Hunziker moved to adjourn the meeting, seconded by Mr. Toulouse. All voting “AYE”

The meeting was adjourned at 5:20 p.m.

Approved by the Board: March 26, 2002