Members Present: Mr. Hunziker,
*Mr. Jibben, Mr. Utz, and
Mr. Landwehr
Absent: None
Board President Landwehr called the meeting to order at
1. Mr. Utz moved
to approve the minutes of the
2. Mr. Utz moved
to approve the accounts payable report, seconded by Mr. Hunziker. All voting “AYE”
3. Mr.
Landwehr opened the meeting for comments from the
public. No one asked to address the
Board.
4a. Mr. Woodworth, Manager of Engineering,
provided an update on the Highway 52 construction project and how it would
impact the electric and water utilities.
The overall transmission line Q3 relocation project is included in the
budget. Mr. Hunziker
moved to approve a contract agreement with L.E. Myers
Company for the Q3 relocation project, seconded by Mr. Utz. All voting “AYE”
BE IT RESOLVED by the Public Utility
Board of the City of Rochester, Minnesota, to approve a contract agreement with
the L.E. Myers Company and to request the Mayor and
the City Clerk to execute the agreement for Transmission Line Q3 Relocation
The amount of the
contract agreement to be TWO HUNDRED EIGHTY-ONE THOUSAND FIVE HUNDRED FORTY-TWO
AND 28/100 DOLLARS ($281,542.28) and the L.E. Myers
Company being lowest responsible bidder.
4b. The construction
of well #38 was discussed. The well is
to be completed by March 2004.
Construction is necessary because of continuing development in the
northwest part of the City.
*
Mr. Jibben entered the meeting at this time.
Mr. Hunziker
moved to approve a contract agreement with Thein Well
Company, seconded by Mr. Utz. 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 38
The amount of the
contract agreement to be TWO HUNDRED TWENTY-FOUR THOUSAND TWO HUNDRED SEVENTEEN
AND 00/100 DOLLARS ($224,217.00) and Thein Well
Company being lowest responsible bidder.
5. Mr. Utz
announced that he would abstain from the voting and discussion regarding the
proposed Amendment to the Site Agreement with Rochester CellTelCo
Partnership, d/b/a AT&T Wireless Services.
Mr. Rovang, RPU Senior Civil Engineer, informed the Board that the
vendor, AT&T, wishes to replace its large monopoles at the Baihly Water Tower Site with smaller antennas. Mr. Hunziker moved
to approve the Amendment, seconded by Mr. Jibben.
3 Voting “AYE”
1 Abstain (Mr. Utz)
Motion Carried
BE IT RESOLVED by the Public Utility
Board of the City of Rochester, Minnesota, to amend the existing Site Agreement
dated May 11, 1998, with Rochester CellTelCo
Partnership, d/b/a AT&T Wireless Services, a District of Columbia
partnership, by AT&T Wireless Services of Minnesota, Inc., its general Partner,
a Nevada corporation, and to request the Mayor and the City Clerk execute the
amendment for
Replacing Two (2) Monopole Antennas and Appurtenances with
Six (6) Flat Panel Antennas & Appurtenances at the Baihly Water Site
6. Change Order #1 to Purchase Order Agreement
46-257 was discussed. The Change Order
is necessary to replace some bearings on the Cascade Creek Unit 1 as a result
of a recent inspection of the unit. The is a non-budgeted item which will go to the Council for
approval due to the dollar amount involved.
Mr. Schlink, Manager of Power Production,
stated that Mr. Adkins, City Attorney, would also review the terms and
conditions of the agreement with Siemens Westinghouse. Mr. Jibben moved to
approve the change order, 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 #1 to Purchase Order Agreement 46-257 with Siemens Westinghouse for
Professional Services to Perform Tilting Pad Bearing Modification
Cascade Creek Unit 1
The amount of the Change Order to be $165,589.00, plus a 10% contingency to cover any unanticipated repairs when the machine is disassembled, for a total of ONE HUNDRED EIGHTY-TWO THOUSAND ONE HUNDRED FORTY-EIGHT AND 00/100 DOLLARS ($182,148.00).
7. An Addendum to the Participation Sales
Agreement between the City of
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 an Addendum to the Participation Sales Agreement
between the City of Rochester and Minnesota Municipal Power Agency and that the
Common Council authorize the Mayor and the City Clerk to execute the addition
of Article IX Coal Inventory
8. In 1997, the Board approved Mr.
Koshire, General Manager, as the Southern Minnesota Municipal Power Agency (SMMPA) member representative. At this meeting, the Board was requested to
appoint Mr. Lorber, RPU Director of Operations, as the alternate SMMPA member representative. Mr. Utz moved to
appoint Mr. Lorber as the SMMPA alternative
representative, seconded by Mr. Jibben. All voting “AYE”
BE IT RESOLVED by the Public
Utility Board of the City of Rochester, Minnesota, that the Board appoints
Walter N. Lorber as Alternate Representative to the Southern Minnesota
Municipal Power Agency effective
9. A revised resolution proclaiming
October 5 – 11 as Public Power Week was distributed during the meeting. Mr. Hunziker moved
to approve the resolution, seconded by Mr. Utz. All voting “AYE”
Proclamation recognizing Public Power Week, October 5-11,
and how RPU powers our lives throughout the year
WHEREAS, we, the citizens of Rochester, MN, place high value on local control over community services and therefore have chosen to operate a community-owned, locally controlled, not-for-profit electric utility and, as consumers and owners of our electric utility, have a direct say in utility operations and policies; and
WHEREAS, RPU provides our homes, businesses, farms, social service, and local government agencies with reliable, efficient, and cost-effective electricity employing sound business practices designed to ensure the best possible service at not-for-profit rates; and
WHEREAS, RPU is a valuable community asset that contributes substantially to the well-being of local citizens through energy efficiency, customer service, environmental protection, economic development, and safety awareness; and
WHEREAS, RPU is a dependable and trustworthy institution whose local operation provides many consumer protections and continues to make our community a better place in which to work and live;
NOW, THEREFORE BE IT RESOLVED: that RPU will continue to work to bring lower-cost, safe, reliable electricity to community homes and businesses just as it has since 1894, the year when the utility was created to serve all the citizens of Rochester; and
BE IT FURTHER RESOLVED: that the Mayor and Common Council of the said City are
requested to designate the week of October 5-11 as the 17th
annual Public Power Week in order to honor RPU for its contributions to the
community and to make its consumer-owners, policy makers, and employees more
aware of its contributions to their well-being and how it makes their lives
powerful; and
BE IT FURTHER RESOLVED: that our
community joins hands with more than 2,000 other public power systems in the
10. Mr.
Koshire, General Manager, provided the following report:
a. At
a recent American Public Power Association (APPA)
meeting he attended, it was noted that the federal government will have more
input on citing bulk transmission. APPA wants to make sure utilities maintain local
control. In addition, several provisions
have been added to the comprehensive federal energy bill which should come out
of conference committee in a few weeks.
b. RPU
staff continues to monitor the progress of the proposed steam project. All legal briefs are in. The status of the permit should be known in a
few months.
c. The
lease/lease back of the water utility assets was briefly discussed. This alternative was discussed by the City
Council at one of their recent meetings.
RPU staff has not looked into the details. Mr.
Hunziker stated that the Council is
considering a proposal under which it would lease the City’s water and
wastewater systems to large investors who wish to obtain the depreciation tax
credits. The City would lease back those systems, and it would continue to own,
maintain and operate the systems. There would be no impact on the daily operations
for the customers. He said that several firms have looked at this proposal and
said it was okay. No decision has been
made by the Council. RPU’s
electric utility assets are not being considered because of its bond covenants
with the Southern Minnesota Municipal Power Agency (SMMPA).
d. A
public meeting will be held at RPU on Thursday, October 30 at
11. The
management/financial reports were discussed.
12. Mr. Hunziker
moved to adjourn the meeting, seconded by Mr. Utz. All voting “AYE” The meeting was adjourned at
Approved by
the Board: