Members Present: Mr. Jibben, *Mr. Bourgeois, Mr. Utz, and Mr. Landwehr

Absent: Mr. Hunziker

Also Present: Mr. Adkins, City Attorney


Board President Landwehr called the meeting to order at 4:03 p.m.


1. Mr. Utz moved to approve the minutes of the July 29, 2003 meeting, seconded by Mr. Jibben. All voting "AYE"


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


3. The proposed Engineering Services Agreement for the relocation of a portion of RPU's 161kV Q3 transmission along the Highway 52 from Mayowood Road to 25th Street SW was discussed.


* Mr. Bourgeois entered the meeting at this time.


Staff believes that this relocation will be completed within the budgeted amount by the end of 2003. Mr. Utz asked if other engineering firms are reviewed on a regular basis. Mr. Woodworth, Manager of Engineering, stated that Ulteig Engineers has been used by RPU since 1980, and that RPU does go out for competing proposals on a regular basis. Mr. Bourgeis moved to approve the Engineering Services Agreement with Ulteig Engineers, Inc., seconded by Mr. Jibben. All voting "AYE"


BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota to approve an Engineering Services Agreement with Ulteig Engineers and to request that the Mayor and the City Clerk execute the agreement for


Engineering Services and Right of Way Acquisition

Transmission Line Q3 Relocation Highway 52 & Mayowood Road


The amount of the agreement to be ONE HUNDRED TWENTY THOUSAND AND 00/100 DOLLARS ($120,000.00).


4. Mr. Woodworth, Manager of Engineering, provided a presentation based on a recent meeting sponsored by the Minnesota Department of Commerce held at RPU offices where the Minnesota biannual transmission plan for southeast Minnesota was discussed. RPU discussed six transmission options for the future. Mr. Koshire said RPU needs to do cost estimates on these options and to also look at regional solutions. He also stated that new energy legislation required a Certificate of Need and public hearings for each one of the six options. RPU will need one of these options in 2007.


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


a. Legal briefs for the steam project are due September 2 to the Environmental Appeal Board. It should take 60 to 120 days for a decision.

b. Some of the RPU Board and staff attended a Lake Zumbro Improvement Association meeting on August 6. It was a good opportunity for various government officials to discuss the benefits of refurbishing RPU's hydroelectric plant.

c. RPU Staff and members of Minnesota Municipal Power Agency (MMPA) are working with a Federal Energy Regulatory Commission (FERC) mediator regarding coal purchases and billing issues under their current contract.

d. The Southern Minnesota Municipal Power Agency (SMMPA) is discussing freezing rates rather than decreasing rates. Mr. Koshire will get back to the RPU Board on any other options we may pursue.

e. Staff has been meeting with members of the Rochester Energy Future Coalition (REFC) on a biweekly basis and has had excellent dialogue with them. The following letter to the public was distributed during the RPU Board meeting in response to some concerns the REFC had expressed at a previous Board meeting.


Open Letter to the Public


Subject: July 2003 Board Meeting – Public Input


Various items were requested by members of the Rochester Energy Future Coalition (REFC) at the July 29, 2003 Utility Board meeting regarding public input and communications on discussions and decisions being made by the Rochester Public Utility Board. The RPU Board has always welcomed public input in their deliberations and feels that the items below will be of interest to other interested parties. Therefore, in order to offer a more formal structure for public input, and public awareness, various administrative changes will be made.


1. At the September board meeting, an agenda item for public input will be added at the beginning of the new business section. A sign-up sheet will be provided for members of the public that are interested in commenting. At the August 26 meeting, public input will be available under the "Other Business" portion of the agenda following discussion of other new business items.


2. An internal process will be undertaken to put new business items that are provided in the board packet on the RPU Web site when they are available. It is staff's intention to accomplish this no later than the end of the year. Meanwhile, the Rochester Energy Future Coalition (REFC) has requested a copy of the monthly RPU Board packet on the day it is distributed to RPU Board members. Notice will be sent to the REFC's designee when the packet is available and a procedure established for receipt of a copy of this Board packet.

3. In response to requests for information and input on the Silver Lake Plant emissions reduction study, public information meetings have been established on a regular basis to provide a forum for delivery of information from the RPU study, as well as to accept public input. The first meeting was held on August 19, 2003. Information on status of the study will also be presented to the RPU Board as it becomes available. Also presentation material will be posted on the RPU Web site.

4. Interest was expressed in participating in future plans for RPU's required Conservation Improvement Programs (CIP). We are discussing an internal process on how best to allow for public input regarding this important program.

5. Contact with various RPU staff can be obtained through a number of ways, including written correspondence, phone contact and a general e-mail request through our Web site. RPU advertises a general information number for public information. This allows calls to be efficiently directed to the appropriate staff person.

6. The Minnesota Pollution Control Agency (MPCA) provides an air quality index for Rochester on their Web site. Since it is available, and maintained by the MPCA, we will not duplicate the posting of this index on the RPU Web site.


c: Mr. Ward Lutz, REFC member

Ms. Lynn Keeler, REFC member

Mr. Terry Larson, REFC member



Larry J. Koshire, P.E.

General Manager


f. The Board and staff extended best wishes to Board Member Paul Bourgeois who is leaving the Board to accept employment in another state.

g. Mr. Jibben asked about storm water utility charges. Mr. Koshire stated that federal legislation requires cities to set up a storm water utility. RPU has been asked to handle the billing which will involve another 400,000 transactions. Public Works will administer the new utility and hold public meetings on how the costs are calculated.


6. The management/financial reports were discussed. Mr. Lorber said RPU set new system peaks on August 16 of 262 megawatts for electric and on August 18 of 29.2 million gallons for water.


7. Other Business


a. Board President Landwehr asked if the public had any comments for the Board. Mr. Al Pierson of Dahlen & Berg introduced himself and said he would be available after the meeting for any questions about MMPA.

b. Mr. Bourgeois thanked RPU staff and the Board for their support during his term. He said they truly have the community's interest at heart. He also said Rochester has always had strong growth and that RPU was talking about the long-term future of the Silver Lake Plant before the REFC came forward. He stated that the plant is a community asset and that we need to upgrade it for the long-term.


8. Mr. Bourgeois moved to adjourn the meeting, seconded by Mr. Utz. All voting "AYE" The meeting was adjourned at 5:40 p.m.


Approved by the Board: September 30, 2003