RPU BOARD MEETING MINUTES July 29, 2003

Members Present: Mr. Jibben, Mr. Bourgeois, Mr. Utz, and Mr. Hunziker

Absent: Mr. Landwehr

Also Present: Mr. Adkins, City Attorney

 

Board President Pro Tem Utz called the meeting to order at 4:00 p.m.

 

1. Mr. Bourgeois moved to approve the minutes of the June 24, 2003 meeting, seconded by Mr. Hunziker. All voting "AYE"

 

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

 

3. Mr. Smith, RPU Key Account & Energy Services Manager, appeared before the Board to discuss establishing a fund for energy efficiency improvements. The fund would fit RPU's need under state law to fund a Conservation Improvement Program (CIP) and would also help businesses upgrade and reduce energy waste. This would also have a positive impact on the community. He stated that lighting improvements could save customers 30% on their lighting costs. Mr. Bourgeois stated that installing energy efficient lighting worked for the School District. Mr. Hunziker asked that staff help the customer ask the right questions to ensure that the customer receives the benefits of the energy efficiency improvements. Mr. Smith said that RPU can test equipment and confirm numbers in the rebate tables. Mr. Bourgeois moved that the Board authorize the use of $250,000 of the CIP budgeted money to finance Demand Side Management energy efficiency projects, seconded by Mr. Jibben All voting "AYE"

 

BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to authorize the use of Conservation Improvement Program (CIP) budgeted money in the amount of $250,000.00 to finance Demand Side Management energy efficiency projects.

 

4. Mr. Rovang, RPU Senior Civil Engineer, presented the proposed revisions to RPU's Water Services Rules and Regulations to the Board. He said the revisions included the City of Rochester's new building and plumbing codes. Mr. Rovang also reviewed the proposed changes with the City Attorney's office. Copies of the revised regulations will be made available to developers and posted to RPU's Web site at www.rpu.org. Mr. Hunziker moved to approve the revisions, seconded by Mr. Jibben. All voting "AYE"

 

BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve the Water Service Rules and Regulations (Revised July, 2003) to be effective August 1, 2003.

 

5. Mr. Lorber discussed the payment to People's Cooperative Services for electric service rights for the Celestica property which was approved by the Minnesota Public Utilities Commission in June 2003. This is a budgeted item. Mr. Bourgeois moved to approve payment to People's Cooperative Services for the Celestica property, seconded by Mr. Jibben. All voting "AYE"

 

BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve payment of compensation to People's Cooperative Services for

 

Acquisition of Electric Service Rights to a 35.37 Acre Plat in ORD 3320,

A Location Currently Occupied by Celestica, Inc.

 

Compensation to be $0.013 per kilowatt-hour for associated retail electricity sales in the area during a ten-year period beginning August 18, 2000, with the lump-sum payment for sales through May 20, 2003 to be FOUR HUNDRED FIFTY-EIGHT THOUSAND, NINE HUNDRED SIXTY-EIGHT AND 30/100 DOLLARS ($458,968.30).

 

6. Ms. Tompkins, RPU Manager of Customer Service, provided a six month update on customer service activity covering topics such as customer contacts, write-offs and survey statistics. RPU provides service to 75,000 water and electric customers. Staff handles up to 6,000 calls per month. They also process 50 Web payments per day and 1,500 credit card customers per month.

 

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

 

a. Mr. Koshire said the Board had been invited to an event for local government officials and Minnesota legislators sponsored by the Lake Zumbro Improvement Association on August 6.

b. An appeal has been filed to the Minnesota Pollution Control Agency decision to grant a construction permit for the proposed steam project.

c. A regional transmission planning meeting was held at RPU with various utilities in attendance to discuss long-term transmission plans for the southeast area of Minnesota.

d. Mr. Koshire stated no action was taken by the Southern Minnesota Municipal Power Agency (SMMPA) Board on the issue of rates and reserves. Mr. Koshire would like to see SMMPA, RPU's wholesale power supplier, reduce its rates by 2% to its members. In addition, the savings from SMMPA's recent bond refinancing will begin in 2004. The RPU Board directed Mr. Koshire to notify the SMMPA Board that RPU would like SMMPA to lower its cost to its members.

 

8. The management/financial reports were discussed.

 

9. Other Business:

 

Ms. Lynn Keeler, member of the Rochester Energy Future Coalition (REFC) and Eastside Neighborhood Association asked the Board to consider having an item on each agenda for citizen input similar to what the School Board and Council do. She suggested having a time limit for each speaker with a sign in sheet. She also asked RPU staff to consider putting the names and phone numbers of RPU managers on the Web site. Another member of the audience requested that the agenda be e-mailed to the REFC group with an electronic copy of the board packet. Board Secretary Kathleen Wilson stated that both the current agenda and approved Board minutes have been posted on RPU's Web site for several years now. She normally posts the information to the Web on the Friday before the board meeting. The issue of furnishing an electronic copy of the board packet was taken under advisement. Currently if the public requests copies of documents, they are charged for multiple pages.

 

Mr. Ward Lutz, REFC member, addressed the Board to request that the monthly General Manager's report to the RPU Board include an overview of the past month's work done on the Silver Lake Plant (SLP) emission reduction study. He also stated that the REFC would like to participate in a discussion and review of the Conservation Improvement Programs planned for 2004. Finally, he said the REFC has been in contact with the Minnesota Pollution Control Agency's Assistant Commissioner regarding the suggestion that a "Citizen's Advisory Board" representing a broad cross section of the community be formed to work toward building mutual understanding, trust and problem resolution. REFC requested time and feedback from the Board regarding their requests at the next Board meeting.

 

Mr. Terry Larson, REFC member, asked if the MPCA's air quality index could be posted on RPU's Web. He also said that the REFC would like to help with promoting wind energy and that the RPU brochure and newspaper ad on this topic were excellent.

 

10. Mr. Hunziker moved to adjourn the meeting, seconded by Mr. Jibben. All voting "AYE" The meeting was adjourned at 5:30 p.m.

 

Approved by the Board: August 26, 2003