RPU BOARD MEETING MINUTES
Members Present: Mr. Landwehr, Mr. Utz, Mr. Bourgeois, and * Mr. Hunziker
Absent: Mr. Jibben
Also Present: ** Mr. Adkins, City Attorney
Board President Landwehr called the meeting to order at
1. Mr. Utz moved to approve the minutes of the
2. Mr. Utz moved to approve the accounts payable report, seconded by Mr. Bourgeois. All voting "AYE"
3. Ms. Laura Andrews, Diversity Program Committee member, appeared before the Board to recognize Mary Tompkins, Customer Services Manager, as one of the recipients of the Women in Leadership Award. A luncheon meeting will be held on March 25 to commemorate the event. Invitations to the event were distributed during the meeting. Mr. Bourgeois recognized RPU staff for their commitment and hard work.
* Mr. Hunziker entered the meeting at this time.
4a. The process for evaluating transformer bids over a three-year period was discussed. Under the terms of this agreement, RPU will be able to utilize resource planning to reduce its transformer inventory and increase its stock turns ratio. The Board commended staff for finding a creative way to generate cost savings on necessary purchases. Mr. Bourgeois moved to reject the bid from RESCO due to non-compliance with specifications and to approve a contract with Burmeister as lowest evaluated bidder, seconded by Mr. Hunziker. All voting "AYE"
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to reject the low evaluated bidder, RESCO, for electric distribution transformers due to non-compliance with specifications.
BE IT RESOLVED by the Public Utility Board of the City of
The amount of the contract to be ONE MILLION SEVENTY-FOUR THOUSAND EIGHT HUNDRED TWENTY-THREE AND 37/100 DOLLARS ($1,074,823.37) and Burmeister being lowest conforming bidder.
4.b. Mr. Hunziker moved to approve a purchase order agreement with
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve a purchase order agreement with Alstom USA Inc. for
2 – 161kV Outdoor 3-pole 161kV Circuit Breakers
for Northern Hills Substation
The amount of the purchase order agreement to be ONE HUNDRED SIX THOUSAND NINE HUNDRED SEVENTY AND NO/100 DOLLARS ($106,970.00) and Alstom USA Inc. being lowest responsible bidder.
5. Mr. Hunziker moved to approve a contract agreement with Ulteig Engineers, Inc. for engineering services for the Northern Hills Substation transformer addition, seconded by Mr. Utz. All voting "AYE"
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve a contract agreement with Ulteig Engineers and that the Board requests the Mayor and the City Clerk to execute the agreement for
Professional Engineering Services for
Northern Hills Substation Transformer T2 Addition
The amount of the contract agreement not to exceed ONE HUNDRED EIGHTY-FIVE THOUSAND AND 00/100 DOLLARS ($185,000.00).
6a. Mr. Woodworth, Manager of Engineering, provided an overview of the impact of the Highway 52 expansion project on RPU facilities. Numerous RPU staff members have been participating in weekly coordination meetings with the utility coordinator for Zumbro River Constructors, Yaggy Colby and MNDOT personnel since early December. Overall, RPU has budgeted over $3 million to cover the project through 2007. Mr. Woodworth stated that there are approximately $1 million of non-reimbursable expenditures in 2003. No further action was taken by the Board on this item.
6b. The Highway 52 Project Reimbursement Agreement with MNDOT was discussed. The purpose of the agreement is to get MNDOT's reimbursement for the relocation of RPU lines. Mr. Utz moved to approve the draft agreement subject to final wording being crafted by the General Manager and City Attorney, 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 contract agreement, subject to review of the terms and conditions by the City Attorney's Department, with Minnesota Department of Transportation (MNDOT) and that the Common Council authorize the Mayor and the City Clerk to execute the agreement for
Highway 52 Project
Relocation Agreement No. 83946
6c. Mr. Bourgeois moved to approve a purchase order amendment with RESCO for additional wire and cable, seconded by Mr. Utz. All voting "AYE"
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve an amendment of the purchase order agreement with RESCO for Wire and Cable.
The amendment will increase the quantity of 500 MCM, Copper, 15 KV, EPR cable ordered under this agreement by 26,400 feet for a total quantity of 66,000 feet.
The value of the amendment to the purchase order agreement is EIGHTY-SIX THOUSAND THIRTY-SEVEN AND 60/100 ($86,037.60) and RESCO being lowest responsible bidder.
7. At its December meeting, the Board requested staff to survey other utilities to find out how they were funding infrastructure costs. The results of the survey were included in the Board packet. R. W. Beck had previously recommended that a contribution-in-aid-of-construction charge of approximately $300 be assessed for each single-family residential service extension. The Board discussed the customer categories that should receive the charge. Some suggested that it be applied by zone; others suggested starting with single-family residences and revising as necessary. It was the consensus of the Board that language listing the types of residences covered as well as zones should be used for applying the fee. Mr. Bourgeois moved to direct staff to work with the City Attorney's Department in drafting appropriate language for a $300 connection fee for new underground electrical service, seconded by Mr. Hunziker.
Three voting "AYE"
One voting "NAY" (Mr. Utz)
8. Mr. Dick Hutmacher, Stanley Consultants, appeared before the board to present the results of an electric rate study analysis. The purpose of the cost-of-service analysis was to determine rate equity and assist in designing rates. Mr. Hutmacher stated that customer cost, capacity cost and energy cost are the three main components used to allocate costs to rate classes. It was his conclusion that RPU has cost-based rates which are justifiable. In addition, RPU staff now has developed a tool, which will allow them to conduct this type of research internally in the future.
9. A revised For Board Action form for this item was distributed during the meeting. Mr. Koshire discussed the need for a 4% water revenue adjustment. The 2003 budget included a 4% overall revenue increase. The adjustment is needed because of capital expenditures, which are significantly driven, by the Highway 52 project and continued community growth. The impact to the average residential customer will be approximately 35¢ per month. Staff requested to advertise the proposed rate increase to become effective
No increase in electric revenues is being recommended at this time, although the 2003 budget for the electric utility included a 1% revenue increase proposed for April, 2003. Mr. Koshire stated that staff would re-visit this issue in the fall for a potential increase in January, 2004 depending on RPU's financial situation. However, the customer charge would be raised in the electric rates, but it would be revenue neutral.
Mr. Bourgeois moved to direct staff to notice the public of a proposed 4% water revenue increase effective
This item will be on the
** Mr. Adkins left the meeting at this time.
10. Mr. Koshire, General Manager, provided the following report:
a. Staff is working on the permitting process with the Minnesota Pollution Control Agency for the steam project.
b. Staff is meeting regularly with an environmental group regarding their concerns for the future of
* Mr. Hunziker left the meeting at this time.
11. The management/financial reports were discussed.
12. Mr. Utz moved to adjourn the meeting, seconded by Mr. Bourgeois. All voting "AYE" The meeting was adjourned at
Approved by the Board: