RPU BOARD MEETING MINUTES October 29, 2002

Members Present: Mr. Toulouse, Mr. Landwehr, * Mr. Bourgeois and Mr. Hunziker

Absent: Mr. Utz

Also Present: Mr. Goslee, Deputy City Attorney

 

Board President Landwehr called the meeting to order at 4:00 p.m.

 

1. Mr. Toulouse moved to approve the minutes of the September 24, 2002 meeting, seconded by Mr. Hunziker. All voting "AYE"

 

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

 

3a.b. Mr. Landwehr stated that if there was no objection, the chair proposed taking up agenda item 4 and returning to agenda items 3.a. and 3.b. after Mr. Bourgeois entered the meeting.

 

4. Mr. Hunziker moved to approve an amendment to the Site Agreement with Rochester CellTelCo Partnership, seconded by Mr. Toulouse. All voting "AYE"

 

BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to amend the existing Site Agreement dated December 15, 1999 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 that the Mayor and the City Clerk execute the amendment for

 

Installing Four (4) E911 Service Related Antennas at the

Saint Marys Concrete Water Tower Site

 

5. Mr. Toulouse moved to approve a Communications Facility License with the Minnesota Department of Administration as part of the Highway 52 upgrade project, seconded by Mr. Hunziker. All voting "AYE"

 

BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve a Communications Facility License with the State of Minnesota Department of Administration, acting for the benefit of the Department of Transportation, and to request that the Mayor and the City Clerk execute the License for

 

Temporary Installation of Three Antennas and Appurtenant Equipment

At the Apache Water Tower Site

Related to the Highway 52 Upgrade Project in Rochester

 

6. Staff informed the Board that the 2003 electric capacity sale was similar to the one approved previously by the Board for 2002. Mr. Hunziker moved to approve a contract with Central Minnesota Municipal Power Agency (CMMPA) to facilitate the capacity sale, seconded by Mr. Toulouse. 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 Central Minnesota Municipal Power Agency and that the Common Council authorize the Mayor and the City Clerk to execute the agreement for

 

The sale of 22 megawatts of plant participation electrical capacity

for the 2003 season (May 1 through October 31).

 

The amount of the contract agreement to be THREE HUNDRED AND THIRTY THOUSAND AND NO/100 DOLLARS ($330,000.00).

 

7. Mr. Koshire discussed the proposed Letter of Intent with TRANSLink Development Company, LLC with the Board. Approval of the Letter would allow RPU to access specific documents and set the deadline whereby an agreement would be reached between TRANSLink and RPU to participate in the TRANSLink Development Company. TRANSLink is an association of transmission companies in Minnesota, Wisconsin, Iowa and Nebraska. By participating in TRANSLink, transmission owning companies such as RPU would be allowed a formal way of participating in the operation of the overall transmission grid and receiving credit for transmission assets that are part of that grid. TRANSLink is an example of a regional transmission organization (RTO) which the Federal Energy Regulatory Commission (FERC) desires to have all transmission owning entities participate in. Since December 31, 2002 has been set as the deadline for negotiations with TRANSLink, staff anticipates bringing an agreement to the Board at the December 23, 2002 Board meeting. Mr. Toulouse moved to approve the Letter of Intent with TRANSLink, 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 Letter of Intent between TRANSLink Development Company, LLC and Rochester Public Utilities.

 

 

* Mr. Bourgeois entered the meeting at this time. Mr. Landwehr requested that the Board take up items 3.a. and 3.b. on the agenda.

 

3.a. The bids received for the County Road 8 SW Manhole and Duct Placement project on Bamber Valley Road were discussed. The next lowest bidder was chosen because the lowest bidder took exception to the bid specifications. Mr. Hunziker moved to reject the Knutson Construction bid for failure to meet bid specifications and to approve a purchase order agreement with Dig America, Inc., seconded by Mr. Bourgeois. All voting "AYE"

 

BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to reject the bid from Knutson Construction for failure to meet bid specifications.

 

BE IT FURTHER 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 Dig America for the

 

Construction of the County Road 8 SW Manhole and Duct Placement Project

 

The amount of the purchase order agreement to be NINETY-THREE THOUSAND NINE HUNDRED THIRTEEN AND 20/100 DOLLARS ($93,913.20).

 

3.b. Mr. Koshire informed the Board that the Minnesota Pollution Control Agency (MPCA) Board had recently ruled that an Environmental Impact Statement (EIS) was not required for the steam supply project because there is no negative environmental impact due to the project. Emission modeling and draft permit development are underway with modeling expected to be complete by the end of 2002 and the draft construction permit issued for public notice early in 2003. The potential costs to RPU of any project milestones slippages were discussed with the Board. Mr. Hunziker moved to approve a contract with Knutson Construction Services for the general construction RPU Steam Supply Project, subject to review of the contract terms and conditions by the City Attorney's office, seconded by Mr. Toulouse. 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 Knutson Construction Services and that the Common Council authorize the Mayor and the City Clerk to execute the agreement for

 

General Construction RPU Steam Supply Project

 

 

The amount of the contract agreement to be FOUR MILLION FIVE HUNDRED EIGHTY THOUSAND AND 00/100 DOLLARS ($4,580,000.00) and Knutson Construction Services being lowest responsible bidder.

 

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

a. Mr. Jack Jibben, Mayo Clinic, was introduced as RPU's new Board member. Mr. Jibben will assume Mr. Toulouse's seat when Mr. Toulouse's term expires in January, 2003.

b. Potential re-financing of RPU's Series 2000 Electric Revenue Bonds was discussed. Staff asked Springsted Incorporated to perform the analysis. Based on the results, annualized debt service savings are not significant at the present. Staff will continue to monitor the market.

c. The preliminary 2003 RPU budgets will be presented to the Board at the November 26, 2002 meeting for discussion with budget approval requested at the December 23, 2002 meeting. The main budget drivers are City of Rochester growth and road projects.

d. The Minnesota Department of Commerce is holding meetings to discuss energy issues. RPU staff plan to attend the November 12 meeting in Rochester.

e. The T&D section of RPU was recognized and congratulated by the Board for going 12 months without a lost time accident. Mr. Olofson, Electrical Construction Supervisor, demonstrated safety devices which allow a lineman to be rescued from a bucket.

f. Due to the holidays, the December Utility Board meeting will be held on Monday, December 23, 2002 at 4:00 p.m.

 

9. The management/financial reports were discussed.

 

10. Mr. Hunziker moved to adjourn the meeting, seconded by Mr. Toulouse. All voting "AYE" The meeting was adjourned at 5:25 p.m.

 

Approved by the Board: November 26, 2002