RPU BOARD MEETING MINUTES
Members Present: Mr. Toulouse, Mr. Landwehr, Mr. Carlson, Mr. Hunziker
Absent: Mr. Bourgeois
Also Present: Mr. Adkins, City Attorney
Board President Toulouse called the meeting to order at
1. Mr. Landwehr moved to approve the minutes of the
2. Mr. Carlson moved to approve the accounts payable report, seconded by Mr. Hunziker. All voting "AYE"
3a,b,c. Mr. Hunziker moved to approve en bloc resolutions for vane repairs to the existing combustion turbine, the Chester substation upgrade, and water treatment equipment procurement for the Mayo steam project. After discussion about the progress of the steam project and timelines, Mr. Hunziker amended his motion of approval to include bringing item 3.c. "Water Treatment Equipment Procurement – Mayo Steam Sale" back to the Board at the January, 2002 meeting for a status update, seconded by Mr. Landwehr. 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 a purchase order agreement with Siemens Westinghouse for Westinghouse Gas Turbine 251B2 – Row 1 Vane Repairs
The amount of the purchase order agreement to be $71,670.00 plus a contingency of 5% for a total approved amount of SEVENTY-FIVE THOUSAND TWO HUNDRED FIFTY-FOUR AND 00/100 DOLLARS ($75,254.00).
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 a contract agreement with L.E. Meyers Company and that the Common Council authorize the Mayor and the City Clerk to execute the agreement for Chester Substation Upgrade
The amount of the contract agreement to be $327,517.43 (THREE HUNDRED TWENTY-SEVEN THOUSAND, FIVE HUNDRED SEVENTEEN and 43/100 Dollars) and L.E. Meyers Company being lowest responsible bidder.
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 a contract agreement with Ultrapure and that the Common Council authorize the Mayor and the City Clerk to execute the agreement for
Water Treatment Equipment Procurement Contract
Silver
The amount of the contract agreement to be FOUR HUNDRED TWENTY-NINE THOUSAND NINE HUNDRED ONE 00/100 DOLLARS ($429,901.00) and Ultrapure being lowest responsible bidder.
4. Mr. Carlson moved to approve a resolution designating those employees of RPU authorized to conduct financial business for the Utility, seconded by Mr. Hunziker. 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. Hunziker moved to approve a resolution authorizing depositories for Utility monies, seconded by Mr. Carlson. 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, 2002 through the 31st day of December, 2002.
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. Appearing before the Board were Mr. Papenfuss and Mr. Olson from the C.O. Brown Agency. Mr. Papenfuss stated that the plant improvements RPU has been making helped maintain the levels of the insurance premiums. Mr. Hunziker moved to approve en block three resolutions, as amended, for all risk property insurance and general liability insurance for 2002, seconded by Mr. Landwehr. 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. 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. A revised For Board Action form, agreement, and resolution were distributed during the meeting. Mr. Eckhoff, president of Venture Systems, Inc., informed the Board that he felt the terms of the two year agreement were fair. Mr. Adkins, City Attorney, stated that at the end of the two year period, the parties would basically start over with no options. Mr. Adkins also requested that the following paragraph be added to the Site Agreement in Section 17 MISCELLANEOUS, and labeled as paragraph M.:
The parties acknowledge that the rent for this Site Agreement differs from the terms of other related agreements for the following reasons:
§ The short guaranteed term of the Agreement.
§ The small amount of (interior) ground space required for the proposed installation.
§ The potential for use of the
Mr. Landwehr moved to approve the Site Agreement with Venture Systems, Inc., subject to the inclusion of Paragraph M in the Agreement, seconded by Mr. Hunziker. All voting "AYE"
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve the attached Site Agreement with Venture Systems, Inc. with Year 2002 per site rent of SEVEN THOUSAND FIVE HUNDRED AND NO/100 DOLLARS ($7,500.00) and to request that the Mayor and the City Clerk execute the agreement for
Installing Antennas and Appurtenant Equipment at the
8. The request for additional safety training services from the Minnesota Municipal Utilities Association (MMUA) was discussed. Currently MMUA provides RPU with 3 days of training per month for OSHA compliance and safety training services. The new agreement would provide eight days of on-site training which would allow RPU to elevate its safety training and practices to a higher level. Mr. Hunziker moved to approve a purchase order agreement with MMUA for safety training, seconded by Mr. Landwehr. 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 a purchase order agreement with Minnesota Municipal Utilities Association for 2002 OSHA Compliance and Safety Training
The amount of the purchase order agreement to be FORTY-ONE THOUSAND THREE HUNDRED TWENTY-FIVE AND 98/100 DOLLARS ($41,325.98).
9. Mr. Carlson moved to approve revisions to RPU's Cold Weather Disconnect Policy necessitated by
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve revisions to the Board Policy Statement entitled RPU Cold Weather Disconnect Policy
10. The proposed 2002 RPU budget was discussed at the November meeting and brought back to the December meeting for approval. Staff stated that the budget reflects a continuing growth in electric and water sales as well as infrastructure investments to serve new customers. No rate increases are being recommended for either the electric or the water division. The board expressed a desire to review RPU's cash reserve targets at a future meeting to determine if they are meeting the Utility's cash needs. Mr. Carlson moved to approve the 2002 budget, seconded by Mr. Hunziker. All voting "AYE"
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, that the 2002 electric and water capital and operating budget be approved.
11. Mr. Koshire provided the following report to the Board:
a. Mr. Schlink, Manager of Power Production, viewed tests on the new combustion turbine. The turbine will arrive in January.
b. New identification cards will be issued to all RPU employees as part of RPU's security review.
c. RPU has completed the upgrade to 161kV for the entire transmission system.
d. Ms. Julie Broker was introduced as the new Communications Coordinator.
12. The management/financial reports were discussed.
13. Other Business:
a. Mr. Adkins stated that the unlawful death lawsuit against the City as a result of a boating accident on
b. Board President Toulouse recognized Mr. Carlson for his many years of service on the Board.
WHEREAS, James R. Carlson has diligently served on the Utility Board since 1985 specializing in the policies of the board, and serving as its President from 1988 through 1995, and
WHEREAS, Mr. Carlson 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. Carlson for his leadership, many talents, commitment to excellence and service to the Board and community.
13. Mr. Carlson moved to adjourn the meeting, seconded by Mr. Hunziker. All voting "AYE"
The meeting was adjourned at
Approved by the Board: