Members Present: Mr.
Toulouse, Mr. Landwehr, Mr. Utz,
Mr. Bourgeois and Mr. Hunziker
Absent: None
Board President Landwehr called the
meeting to order at
1. Mr. Utz moved
to approve the minutes of the
2. Mr. Toulouse moved to approve the accounts payable report, seconded by Mr. Utz. All voting “AYE”
3. Mr.
David Berg, R. W. Beck, appeared before the Board to discuss new residential
underground customer connection fees.
Mr. Koshire said that most utilities use connection fees to help support
development. RPU staff is currently
reviewing its costs for installing electric facilities to serve new
subdivisions and the appropriate method to pay for those costs. As the City continues to grow and the costs
for installing facilities in new subdivisions have continued to increase, this
continues to put upward pressure on rates.
At one time, RPU had a per lot charge for new development, but it was
dropped in 1989. The R. W. Beck data
presented was calculated on a per customer basis. R. W. Beck recommended that RPU implement a
one-time residential underground service connect fee to be paid by developers
for new residential underground electrical services in the amount of $300. Mr. Hunziker asked
if RPU could use an approach similar to what the City currently does for water
towers on an area-wide basis. Mr. Adkins
stated that this process is known as assessment which we can do by law. The Board directed staff to survey other
4. Mr. Hunziker
moved to approve a resolution designating those employees of RPU authorized to
conduct financial business for the Utility, seconded by Mr. Utz. All voting “AYE”
BE IT RESOLVED by the Public Utility
Board of the City of Rochester, Minnesota, that the following person or persons
are hereby authorized for and in behalf of the City of Rochester, D/B/A
Rochester Public Utilities, to endorse or cause to be endorsed such documents
regarding deposits, checks, drafts, investments or any other matter necessary
for or pertaining to the financial operation of the Rochester Public Utilities.
Larry
J. Koshire
Tina
Livingston
Curtis
Kraft
Douglas
Noga
5. Mr. Toulouse moved to approve a resolution authorizing the depositories for Utility monies, seconded by Mr. Bourgeois. All voting “AYE”
BE IT RESOLVED by the Public Utility Board of the
City of Rochester, Minnesota, that the following banks, authorized to do
business in Minnesota, are the designated depositories for demand deposit
accounts and temporary investment of funds of Rochester Public Utilities, City
of Rochester, Minnesota, within the limits established by the City of
Rochester, for the term commencing January 1, 2003 through the 31st
day of December, 2003.
US
Bank
Wells
The above depositories,
and any added during the term by the City Finance Director, shall pay interest
at such rate or rates, per annum, as may be mutually agreed upon by the
Rochester Public Utilities and the respective depository at the time such
deposits and investments are made.
The depository shall
pay on demand all deposits subject to payment on demand, with accrued interest,
and pay on demand all time deposits with accrued interest, at or after
maturity.
6. Mr. Lyle Papenfuss and Mr. Darwin Olson from the C.O. Brown Agency appeared before the Board to discuss all risk property insurance and general liability and automotive insurance quotations for 2003. A major increase in property insurance of 35% has occurred due to market conditions and the increase in RPU’s total property values with the addition of the new combustion turbine at the Cascade Creek Plant. Staff recommended that the current deductibles be continued. Information on Terrorism coverage for an additional premium of $36,500.00 was distributed and discussed during the meeting. Mr. Olson informed the Board that the League of Minnesota Cities Insurance Trust is also looking at coverage for terrorism. Mr. Hunziker said that this might be a city-wide issue. The Board concurred with staff’s recommendation to reject the Terrorism coverage at this time.
Mr. Toulouse moved to approve en bloc three resolutions for insurance coverage for 2003, seconded by Mr. Bourgeois. 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 an insurance agreement with Starr
Technical Risks Agency, Inc. (Hartford Steam) for furnishing the following
insurance coverage:
ALL RISK PROPERTY
INSURANCE
The insurance
agreement to be for a twelve month policy period commencing
The
amount of the twelve month premium effective
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 insurance agreement with the League of
Minnesota Cities Insurance Trust for:
COMMERCIAL AUTOMOBILE AND GENERAL LIABILITY INSURANCE
The
insurance agreement to be for a twelve month policy period commencing
The
amount of the twelve month premium effective
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 insurance agreement with the
Associated Electric and Gas Insurance Services, Ltd. (AEGIS) for furnishing the
following insurance coverage:
EXCESS GENERAL LIABILITY
INSURANCE
The
insurance agreement to be for a twelve month policy period commencing
The
amount of the twelve month premium effective
7. Mr. Woodworth, Manager of Engineering, discussed the 2001 Electric Engineering & Operations Report with the Board, which identified electric system reliability statistics.
8. Mr. Utz moved to approve a memorandum of agreement with IBEW Local #949 “Office and Clerical Employees” which reflects the City of Rochester’s revision to its vacation accrual policy for all employees effective January 1, 2003, seconded by Mr. Toulouse. All voting “AYE”
BE IT RESOLVED by the
Public Utility Board of the City of Rochester, Minnesota, to approve a Memorandum
of Agreement with the International Brotherhood of Electrical Workers (IBEW) Inside Bargaining Unit Employees and the City of
Memorandum
of Agreement – Vacation Accrual
IBEW Local #949 Office and Clerical
9. A revised resolution for RPU’s 2003 budgets was introduced during the meeting which reflected the necessary Board and Council approvals. Mr. Landwehr stated that the rate adjustment shown was an assumption only and that the Board was only approving the budgets at this time. Mr. Koshire stated that this is the second year that RPU’s budgets have gone to the Council for approval and that the process has worked very well. Mr. Toulouse moved to approve the 2003 electric and water capital and operating budgets, seconded by Mr. Bourgeois. 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 the 2003 electric and water
capital and operating budgets.
10. Mr. Koshire, General Manager, provided the following report:
a. The lawsuit filed by the Minnesota Municipal Power Agency (MMPA) under the Data Practices Act has been settled without payment of money or admission of any wrongdoing by RPU.
b. Staff continues to work with the Minnesota Pollution Control Agency and environmental groups on the steam supply project. Mr. Koshire said we are nearing the end of the modeling phase.
11. The management/financial reports were discussed.
12. Other Business:
Board President Landwehr recognized Mr. Toulouse’s 25 years of service on the Board and thanked him for acting as a mentor to others on the Board by reading the following proclamation:
WHEREAS, Roger K. Toulouse has diligently served on
the Utility Board since 1977 specializing in the operations and administration
of the board, and serving as its President for twelve years, and
WHEREAS, Mr. Toulouse has been a valuable asset and has
contributed substantially to the well-being of Rochester Public Utilities and
the local citizens by his leadership and efforts in such areas as energy
efficiency, customer service, environmental protection, economic development,
service territory disputes, and internal transitions within the Utility, and
WHEREAS,
NOW, THEREFORE BE IT RESOLVED, that
the Rochester Public Utility Board wishes to recognize and thank Mr. Toulouse
for his leadership, many talents, commitment to excellence and service to the
Board and community.
13. Mr. Bourgeois moved to adjourn the
meeting, seconded by Mr. Utz. All voting “AYE” The meeting was adjourned at
Approved by the Board: