RPU BOARD MEETING MINUTES June 24, 2003

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

Absent: Mr. Jibben

Also Present: Mr. Adkins, City Attorney

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

1. Mr. Hunziker moved to approve the minutes of the May 27, 2003 meeting, seconded by Mr. Bourgeois. All voting "AYE"

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

3a. The bids received for the Northern Hills Substation T2 Addition were discussed. Mr. Woodworth, RPU Manager of Engineering, informed the Board that the sealed bid from Brink Electrical Construction Company did not arrive on time and was not opened. Mr. Hunziker moved to reject the proposal from Brink Electrical Construction Company due to noncompliance with bidding requirements and to approve a contract agreement with L. E. Myers Company for $371,285.37, seconded by Mr. Bourgeois. All voting "AYE"

BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to reject the proposal from Brink Electrical due to noncompliance with bidding requirements.

BE IT FURTHER RESOLVED by the Public Utility Board to approve a contract agreement with L. E. Myers Company and request the Mayor and the City Clerk to execute the agreement for Northern Hills Substation T2 Addition

The amount of the contract agreement to be THREE HUNDRED SEVENTY-ONE THOUSAND TWO HUNDRED EIGHT-FIVE DOLLARS AND 37/100 ($371,285.37) and L. E. Myers Company being lowest responsible bidder.

3.b. The bids for the 7^th Street Duct Bank project were discussed. One bid (from MasTec) was returned unopened because it did not arrive on time. The reimbursement to RPU from the Minnesota Department of Transportation (MNDOT) for this project was discussed with the Board. RPU will not be reimbursed for 10% of the total project, but staff is still discussing what is reimbursable with MNDOT.

* Mr. Utz entered the meeting at this time.

Mr. Hunziker moved to approve a contract with Dig America, Inc. for relocation of the 7^th Street Duct Bank, seconded by Mr. Bourgeois. 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 Dig America, Inc. and that the Common Council authorize the Mayor and the City Clerk to execute the agreement for Saint Marys Feeder Duct System Reroute

The amount of the contract agreement to be SIX HUNDRED NINETY-FIVE THOUSAND THREE HUNDRED THIRTY-SIX DOLLARS AND 15/100 ($695,336.15) and Dig America Inc. being lowest responsible bidder.

4. The reimbursement agreement for the 7^th Street duct bank relocation was discussed. Mr. Utz moved to approve the agreement with MNDOT subject to review of the terms and conditions by the City Attorney's Department, seconded by Mr. Bourgeois. 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 the 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 MNDOT Contract 85448

Reimbursement Agreement – 7^th Street Duck Bank Relocation

5. The professional services contracts for the transport, purchase, nominating and balancing of natural gas for the Silver Lake and Cascade Creek generating sites were discussed with the Board. Mr. Hunziker moved to approve four contract agreements subject to Cornerstone Energy's approval of the changes noted in the contracts, seconded by Mr. Utz. 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 four contract agreements with Cornerstone Energy for

Professional Services as defined in the Two Base Agreements

And Two Daily and Monthly Balancing Services Contracts for

Silver Lake Power Plant and the Cascade Creek Generating Facility

6. Mr. Hunziker moved to approve a relocation agreement with MNDOT for the relocation of pad-mounted three phase junction cabinets on Highway 63, seconded by Mr. Utz. All voting "AYE"

BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve a Relocation Agreement contract and request the Mayor and City Clerk to execute the agreement for

Relocation of Two Pad-Mounted Three Phase Junction Cabinets

MNDOT Agreement No. 85193

The amount of the Relocation Agreement to be ELEVEN THOUSAND FIVE HUNDRED TWENTY-TWO DOLLARS AND 31/100 ($11,522.31).

7. Ms. Stephanie Yrjo, RPU Commercial Account Representative, and Mr. Dan Hayes, Member Support Manager from the Southern Minnesota Municipal Power Agency (RPU's wholesale supplier) provided a presentation to the Board on wind power. The Agency installed two 950 kW wind turbines near Fairmont in March, 2003. Each turbine will produce enough renewable electricity for about 350 homes. Mr. Hayes stated that one home using only wind power will have the environmental effect of taking one car off the road for a year or planting three acres of trees. Three SMMPA member utilities, Austin, Owatonna and Rochester, have partnered to present this wind offering to their customers. Ms. Yrjo discussed pricing of wind power "blocks." The amount a customer may purchase is unlimited. Mr. Hunziker asked about payback for the wind turbines. Mr. Hayes replied that the payback would be seven to 10 years. More information is available on RPU's Web site, www.rpu.org.

8. Mr. Lorber, Director of Operations, provided the following report:

a. At the time of the Board meeting, Mr. Koshire was attending a hearing at the Minnesota Pollution Control Agency on the steam project. If the construction permit is approved, there is a 30 day period for appeals.

b. A meeting will be held at RPU on July 22 at 7:00 p.m. to discuss transmission planning in southeast Minnesota. The meeting is required by the 2000 Minnesota Energy Act. Various utilities are expected to make transmission planning presentations. The meeting is open to the public.

** Mr. Hunziker left the meeting at this time.

c. The Iowa Public Utilities Commission denied Iowa based Alliant and Midi-America's petition to place their transmission assets in TRANSLink, a new regional transmission organization. The Iowa PUC did encourage the utilities to renew their petition with the desired information and promised quick approval. Mr. Lorber stated that TRANSLink probably won't be operational until 2004.

d. The step-up transformer at the Silver Lake is currently out of service. Repairs are being scheduled.

9. The management/financial reports were discussed.

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

Approved by the Board: July 29, 2003

style='tab-stops:.5in center 3.25in'>RPU BOARD MEETING MINUTES June 24, 2003