RPU BOARD MEETING MINUTES June 25, 2002

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

Absent: Mr. Bourgeois

Also Present: None

Board President Landwehr called the meeting to order at 4:03 p.m.

1. Mr. Toulouse moved to approve the minutes of the May 28, 2002 meeting, seconded by Mr. Hunziker. All voting “AYE”

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

3. Mr. Schlink, Production Manager, provided a summary of the Cascade Creek Unit 2 construction costs. The project is 2.7% over budget but under the original engineering estimates for mechanical and electrical construction. The project was originally approved by the Board in 1999. Mr. Landwehr asked staff to track RPU’s summer sales and provide them to the Board at the end of the summer. Mr. Toulouse moved to approve a change order with NewMech Companies for mechanical construction services, seconded by Mr. Utz. All voting “AYE”

BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, that the Common Council of the said City is requested to approve Change Order No. 1 to the Cascade Creek Combustion Turbine agreement (Contract 6) between Rochester Public Utilities and NewMech Companies Inc., and that the Common Council authorize the Mayor and the City Clerk to execute the change order to provide the services and materials as defined in the change order for a revised contract amount of $1,227,836.00, which is an increase of $313,136.00 from the original contract.

4. Mr. Hunziker moved to approve a change order with Premier Electric Companies, Inc. for electrical construction services, seconded by Mr. Utz. All voting “AYE”

BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, that the Common Council of the said City is requested to approve Change Order No. 1 to the Cascade Creek Combustion Turbine agreement (Contract 7) between Rochester Public Utilities and Premier Electric Companies Inc., and that the Common Council authorize the Mayor and the City Clerk to execute the change order to provide the services and materials as defined in the change order for a revised contract amount of $880,348.00, which is an increase of $256,348.00 from the original contract.

5. Since Charter Communications had not submitted a signed Pole Attachment License Agreement to RPU, no action was taken by the Board on this item.

6. Mr. Koshire, General Manager, provided the following report:

a. A special RPU Board meeting will be held at noon on July 15 to approve the issuance of Electric Utility Revenue Bonds, Series 2002A.

b. A Southern Minnesota Municipal Power Agency (SMMPA) board meeting will be held in the RPU community room at 9:00 a.m. on July 17.

c. Mr. Koshire and three members of the Board attended the annual American Public Power Association’s (APPA) seminar in Dallas in June.

7. The management/financial reports were discussed.

8. Mr. Hunziker moved to adjourn the meeting, seconded by Mr. Toulouse. All voting “AYE” The meeting was adjourned at 4:40 p.m.

Approved by the Board: July 30, 2002