RPU BOARD MEETING MINUTES
Members Present: Mr. Landwehr, Mr. Utz, Mr. Jibben and Mr. Hunziker
Absent: Mr. Bourgeois
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. Hunziker. All voting "AYE"
3a. A revised For Board Action (FBA) form was distributed during the meeting to reflect the results of the bid opening mentioned in the previous FBA. Staff explained that Thein Well Company was the low bidder. Mr. Utz moved to approve a purchase order agreement with Thein Well Company in the amount of $60,453.74 for replacement of pumping units at three well sites, seconded by Mr. Jibben. All voting "AYE"
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve a purchase order agreement with Thein Well Company, Inc. for
Replacement of Pumping Units
(Municipal Well #25 – Apache Mall SW)
(Municipal Well
(Municipal Well #
The amount of the purchase order agreement to be SIXTY THOUSAND FOUR HUNDRED FIFTY-THREE AND 74/100 DOLLARS ($60,453.74) and Thein Well Company being lowest bidder.
3b. Mr. Utz moved to approve a purchase order agreement with Tri-State Drilling for $129,950.00 for the construction of three concrete caisson foundations, seconded by Mr. Jibben. All voting "AYE"
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve a purchase order agreement with Tri-State Drilling, Inc. for
Construction of Three Concrete Caisson Foundations
For Q7 Transmission Line
The amount of the purchase order agreement to be ONE HUNDRED TWENTY-NINE THOUSAND NINE HUNDRED FIFTY AND 00/100 DOLLARS ($129,950.00) and Tri-State Drilling, Inc. being lowest responsible bidder.
3c., Mr. Schlink, Power Production Manager, provided an update of the steam supply project.
4, 5 RPU's portion of the project costs has increased from the original cost estimates done in June, 2001 due to the delay in the start of the project. The increased costs were in the categories of engineering services and legal costs. Mr. Hunziker moved to approve items 3.c., 4 and 5 en block, 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 Himec Inc. and that the Board requests the Mayor and the City Clerk to execute the agreement for General Construction Silver Lake Plant Modification Project
The amount of the contract agreement to be TWO MILLION SIX HUNDRED EIGHTY-SEVEN THOUSAND AND 0/100 ($2,687,000.00) and Himec Inc. being lowest responsible bidder.
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve a purchase order agreement with Novaspect Inc. for Engineering Services for Steam Supply Project
The amount of the purchase order agreement to be $230,203.00, plus a 10% contingency amount of $23,203.00 for a total approved amount of TWO HUNDRED FIFTY-THREE THOUSAND TWO HUNDRED TWENTY-THREE DOLLARS AND 00/100 ($253,223.00).
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 the additional scope and associated costs based on final design and the delay of construction and commercial operation to the two engineering services agreements with Stanley Consultants, Inc. for
Engineering Services Contract for
All work will be performed on a time and material basis which will not exceed a total amount of $1,198,135.00 for both contracts.
6. Mr. Jibben moved to approve a resolution authorizing payment of the Silver Lake Plant 2003 air emission fee in the amount of $107,247.73, seconded by Mr. Hunziker. All voting "AYE"
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, hereby approves payment of Invoice No. 1100007620 from the Minnesota Pollution control Agency for Annual Air Emissions Fee for Silver Lake Plant
The amount of the payment to be ONE HUNDRED SEVEN THOUSAND TWO HUNDRED FORTY-SEVEN AND 73/100 DOLLARS ($107,247.73).
7. Mr. Koshire informed the Board that staff had advertised the proposed 4% water rate increase in accordance with Board policy. In addition, RPU has been requested by City Administration to cover the cost of community fire protection and oversize mains in the water utility budget which the City had been paying to RPU. To offset this unbudgeted expense, staff discussed the implementation of a community fire protection charge on the customer bill of $1 per month for residential customers and $2 per month for commercial/industrial customers. This would be a separate line item on the utility bill. Mr. Hunziker said the City will be having discussions on assorted fees in the months to come.
Mr. Utz moved to approve a 4% increase in water rates effective
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 4 % increase in water revenue rates effective
Mr. Hunziker moved that the Board recommend that the Council approve the implementation of a community fire protection charge of $1.00 per customer per month for residential customers, and $2.00 per customer per month for commercial/industrial customers, seconded by Mr. Jibben. All voting "AYE"
8. The proposed changes to various electric utility rate tariffs were discussed. The adjustments are designed to be revenue neutral at the customer class level, but move RPU closer to cost-of-service based rates. Mr. Utz moved to approve a resolution revising certain rate schedules, seconded by Mr. Jibben. 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 the following rate schedules effective
Residential Service (RES)
Residential Service – High Efficiency HVAC (RES-HEF)
General Service (GS)
General Service Time-Of-Use (GS-TOU)
Medium General Service (MGS)
Medium General Service Time-Of-Use (MGS-TOU)
Purchased Power Adjustment Clause (PPAC)
9. The current status of RPU's four cash reserve funds was discussed. Mr. Noga, Manager of Finance and Accounting, stated that the growing capital project expenditures in the next five years are causing the "Financing/Capital Reserve" fund to increase, but that the "Working Funds Reserve" and the "Operating Reserve" funds are decreasing based on planned expenses and rate-based capital expenditures. RPU management recommended that the "Contingency Reserve" balance be increased from $1 million to $1.2 million in March, 2003 in order to set aside additional money for unforeseen events. The additional money would come from the other cash reserve funds. Mr. Hunziker moved to increase the Contingency Reserve balance to $1,200,000.00, seconded by Mr. Utz. All voting "AYE"
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve the transfer funds by RPU staff from the other cash reserve funds to the "Contingency Fund" effective in March, 2003, so that the balance in the Contingency Fund will be $1,200,000.00.
10. The agreement with U.S. Cellular to install antennas and transmitter equipment at the Golden Hill water tower site was discussed. Mr. Utz moved to approve the antenna agreement, seconded by Mr. Jibben. All voting "AYE"
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve the attached Site Agreement with Woodland Wireless, L.P., d/b/a U.S. Cellular, and to request the Mayor and the City Clerk execute the Agreement for Installing Antennas and Appurtenant Equipment at the Golden Hill Water SW
11. Mr. Utz moved to approve an amendment to the agreement for antenna installations with Qwest Wireless, 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 Amendment to the Site Agreement dated May 11, 1998, with US West Wireless, L.L.C. (now Qwest Wireless, L.L.C.) and to request the Mayor and the City Clerk execute the amendment for Installing Antennas and Appurtenant Equipment At the Silver Lake Plant Pole Yard
12. Mr. Koshire, General Manager, provided the following report:
a. A revised RPU Web site was launched at www.rpu.org recently.
b. Some of the Board will tour the Sherco plant on May 1.
c. There will be a public meeting on April 10 at John Adams at
d. Staff met with various environmental groups at a meeting sponsored by the League of Women Voters recently.
13. The management/financial reports were discussed.
14. Mr. Hunziker moved to adjourn the meeting, seconded by Mr. Utz. All voting "AYE" The meeting was adjourned at
Approved by the Board: