RPU BOARD MEETING MINUTES
Members Present: Mr. Toulouse, *Mr. Bourgeois, Mr. Carlson, Mr. Landwehr, Mr. Hunziker
Absent: None
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 Mr. Adkins asked about the number of bidders for item 3.b. He was informed that of the three manufacturers sent documents, only two submitted bids. One bidder was not responsive because a bid bond was not included, so the bid was returned unread. Mr. Carlson moved to approve en bloc a resolution for Contract 5 for the Cascade Creek 161kV substation construction and a resolution for Contract 4 for a nonsegregated phase bus duct for the Cascade Creek Unit 2 new gas turbine installation project, 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 contract agreement with L.E. Meyers Company and that the Common Council authorize the Mayor and the City Clerk to execute the agreement for Cascade Creek 161kV Substation Construction - Contract 5
The amount of the contract agreement to be NINE HUNDRED FORTY-SIX THOUSAND FIVE HUNDRED SEVENTY-SIX AND 51/100 DOLLARS ($946,576.51) 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 Unibus, Inc., and that the Common Council authorize the Mayor and the City Clerk to execute the agreement for - Cascade Creek Unit 2 – Contract 4 - Nonsegregated Phase Bus Duct
The amount of the contract agreement to be $55,533.00 plus a contingency of 10% ($5,553.00) for a total approved amount of SIXTY-ONE THOUSAND EIGHTY-SIX AND 00/100 DOLLARS ($61,086.00) and Unibus, Inc. being lowest responsible bidder.
4. Mr. Schlink, Manager of Power Production, provided a report to the Board on the status of discussions with the Mayo Clinic with respect to providing steam to their facilities. Excess steam from the Silver Lake Power Plant could be used to support Mayo's energy needs. The proposed route for the steam line was discussed. Staff recommended negotiating a long-term contract with the Mayo Clinic for steam supply.
* Mr. Bourgeois entered the meeting.
Staff is working with state and federal pollution control agencies regarding permitting requirements for such a project. Mr. Adkins suggested that RPU have a pre-agreement with Mayo to cover the purchase of initial resources. Mr. Koshire said the project would assure a continuous revenue stream, which would be good for RPU's plant. Mr. Bourgeois said the project would also help insure rate stability. It was noted that RPU has run a steam system in the past. The Board concurred with staff's direction and requested staff to continue negotiations with the Mayo Clinic.
5. Mr. Hunziker moved to approve a purchase order agreement with Sebesta Blomberg & Associates, Inc. to provide professional services for a boiler control upgrade, seconded by Mr. Carlson. 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 Sebesta Blomberg & Associates, Inc. for Professional Services – Boiler Control Upgrade 2001
The amount of the purchase order agreement not to exceed ONE HUNDRED TWO THOUSAND FIVE HUNDRED NINETY AND 00/100 DOLLARS ($102,590.00).
6. The proposed three year Guaranteed Delivery Agreement with Utilicorp United Inc. was discussed. Mr. Hunziker moved to approve a contract agreement with Utilicorp United Inc. to provide services as defined in the Guaranteed Delivery Agreement, seconded by Mr. Carlson. 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 contract agreement with Utilicorp United Inc., and that the Common Council authorize the Mayor and the City Clerk to execute the agreement for Services as Defined in the Guaranteed Delivery Agreement
The amount of the contract agreement to be $12.50 per MMBtu per month for a volume of 200 MMBtu and a term of three years. The total value of the Agreement is $90,000.00.
7. The Project Labor Agreement for the Cascade Creek Unit 2 gas turbine project at the Cascade Creek substation was discussed. Due to the critical need to complete the project in a timely manner, it is imperative that the work continues without interruption in order to comply with the aggressive installation schedule. To accomplish this, staff recommended that a project labor agreement be approved to preclude any interruption of craft labor on the project. The agreement would protect the project from disruption due to strikes, slowdown or stoppages, but would obligate the successful bidders to the terms of the agreement including payment of prevailing wage. Mr. Adkins requested staff to revise the proposed Local Government/Agency Resolution Concerning Adoption of Project Labor Agreement for Specific Project to include specific details of the potential costs to the City if the project gets delayed.
Mr. Landwehr moved to table this agenda item to provide staff an opportunity to revise the proposed agreement, seconded by Mr. Hunziker. All voting "AYE"
8. The proposed electric cost of service study was discussed. The last time RPU had a cost of service study for the electric utility was in 1995. Mr. Landwehr moved to approve a purchase order agreement with Stanley Consultants to provide a cost of service study for the electric utility, seconded by Mr. Hunziker. 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 Stanley Consultants for Cost of Service Study – Electric Utility
The amount of the purchase order agreement not to exceed FIFTY-SEVEN THOUSAND AND 00/100 DOLLARS ($57,000.00).
9. Mr. Carlson moved to approve the revised Purchase Power Adjustment Clause (PPAC), seconded by Mr. Landwehr. The PPAC base is being adjusted downward due to RPU's reduced energy demand from the Southern Minnesota Municipal Power Agency. All voting "AYE"
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve revisions to the Purchased Power Adjustment Clause effective
10. Mr. Landwehr moved to approve a purchase order agreement with Morgan Marketing Partners to provide a customer survey, seconded by Mr. Hunziker. 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 Morgan Marketing Partners, Inc. for Customer Survey
The amount of the purchase order agreement to be FIFTY-FIVE THOUSAND SEVEN HUNDRED FIFTY AND 00/100 DOLLARS ($55,750.00).
11. The June meeting will tentatively be held on
12. The management/financial reports were discussed.
13. Mr. Carlson moved to recess the meeting until
14. Mr. Toulouse reconvened the meeting at
15. Mr. Landwehr moved that the agenda item regarding the Project Labor Agreement be removed from the table, seconded by Mr. Carlson. All voting "AYE"
A revised Local Government/Agency Resolution Concerning Adoption of Project Labor Agreement for Specific Project was distributed and reviewed.
Mr. Hunziker moved to approve the revised Resolution Agreement, seconded by Mr. Carlson. All voting "AYE"
16. Mr. Bourgeois moved to adjourn the meeting, seconded by Mr. Landwehr. All voting "AYE"
The meeting was adjourned at
Approved by the Board: