RPU BOARD MEETING MINUTES
Members Present: Mr. Landwehr, Mr. Bourgeois, *Mr. Utz, Mr. Jibben and Mr. Hunziker
Also Present: Mr. Adkins, City Attorney
Board President Landwehr called the meeting to order at
1. Mr. Bourgeois moved to approve the minutes of the
2. Mr. Hunziker moved to approve the accounts payable report, seconded by Mr. Bourgeois. All voting "AYE"
3. Appearing before the Board was Mr. Bill Bruins, a City of
* Mr. Utz entered the meeting at this time.
Mr. Bruins discussed the REFC's desire for inexpensive and reliable electricity from an environmentally friendly source. The group believes that coal burning emissions cause disease and referred the Board to the Minnesota Department of Health's Web site for more specific information about particulate matter. He also mentioned that the Silver Lake Plant was built prior to 1970, has a few controls, but is not required to comply with the Clean Air Act. He also said that the steam project would increase coal burning by 51%. Some of the recommendations made by REFC to the Board include the following:
· Reduce the level of pollution at the Silver Lake Plant
· Perform a cost to upgrade analysis.
· Have the Pollution Control Agency perform a benefits analysis of controls.
The group also showed a videotape of testimony by Dr. Paul Scanlon, a
Board President Landwehr said that the Board is interested in the environmental issues that REFC brought to the table. He also stated that an analysis needs to be done, and that there will be activity in the next several months. Mr. Bourgeois stated that as Board members they have to preserve RPU for the long-term and that RPU is a public asset. Mr. Utz stated that health concerns are important and that RPU is looking at renewable and other sources of energy. Another REFC spokesperson Flo Sandok, a
4.a.b. Mr. Hunziker moved to approve en bloc two resolutions for the purchase of a cab and chassis, and body and installation of a digger derrick truck, seconded by Mr. Utz. All voting "AYE"
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, hereby to approve a purchase order agreement with North Star International Trucks Inc. for
One International Model 7400 36,200 lb. GVW Single Axle
Truck Cab & Chassis with Manual Transmission
Available on State Contract Release T-647(5)
The amount of the purchase order agreement to be SIXTY-FIVE THOUSAND FOUR HUNDRED FIFTY-FIVE AND 00/100 dollars ($65,445.00) plus sales tax.
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve a purchase order agreement with Altec Industries Inc. for
One – 2003 Altec DM47TR Digger Derrick,
One – 2003 Astoria 54" VT T-Box Fiberglass Body and Installation
On RPU Provided Cab & Chassis
The amount of the purchase order agreement to be ONE HUNDRED SEVEN THOUSAND EIGHT HUNDRED THIRTY-NINE AND 00/100 DOLLARS ($107, 839.00) plus sales tax, with Altec Industries Inc. being lowest responsible bidder.
5. Staff asked the Board to rescind its approval of two Agreements for Communications Monopoles with Vertical Real Estate, Inc. (d/b/a Vertical Partners) since Vertical Partners is no longer in business and the documents were never executed. Mr. Jibben moved to rescind the Board's approval, seconded by Mr. Hunziker. All voting "AYE"
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to rescind its
Leasing Real Property at the Silver
Appurtenant Telecommunications Equipment at Each Site.
6. The purpose of the Coexistence Agreement for the Home Shield service mark was discussed with the Board. Two other companies are already using a form of Home Shield, and approving the Agreement will allow the City/RPU to complete the Home Shield service mark registration. Mr. Utz moved to approve the Agreement, seconded by Mr. Hunziker. All voting "AYE"
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to approve a Coexistence Agreement with ServiceMaster Company and American Home Shield Corporation and that the Mayor and City Clerk execute the document for Service Mark Registration for Home Shield by City/RPU
7. The request to approve a purchase order agreement for asset maintenance optimization by Life Cycle Engineering, Inc. was withdrawn from the agenda. No action was taken by the Board on this item.
8. Mr. Bourgeois moved to approve a purchase order agreement with Novaspect, Inc. for an extended warranty and express module replacement program for the Silver Lake Plant boiler system, 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 Novaspect, Inc. for
Novaspect System Performance Agreement #32002 (RPU Contract#02-16-E)
Annual Professional Services
Appendix I – Schedule of Services and Charges
The amount of the purchase order agreement to be NINETY-EIGHT THOUSAND NINE HUNDRED NINETY-FIVE AND 00/100 DOLLARS ($98,995.00).
9. Mr. Koshire, General Manager, provided the following report:
a. There will be a planning meeting on June 10 involving the Boards of Austin,
b. A legislative update was provided.
c. The new conceal and carry law was discussed and its potential impact on RPU's customer service section.
d. RPU staff will continue to meet with the REFC. While Best Available Control Technology (BACT) is not defined, the rules will be clearer in a year.
e. RPU and the Southern Minnesota Municipal Power Agency (RPU's wholesale supplier) are working on a wind offering which will be announced in June. More information on this will be available at the June 24 Board meeting.
f. Staff is working with IBM on back up generation. This project will come to the Board for approval in the future.
10. The management/financial reports were discussed. Mr. Utz requested that the Operations Report be revised to show that Board Members attended the Sherco tour and wind farm presentation as part of ongoing Board member education and training activities provided by RPU. Mr. Bourgeois asked staff to prepare a new quarterly report of the direct costs of plant and dam to keep track of revenue going back to the beginning of January 2003.
11. Other Business:
Mr. Bourgeois asked about the next steps for investigating options brought by REFC. He recommended looking at Best Available Control Technology (BACT). Mr. Koshire said that RPU has an ongoing staff review of technology, but that this could be formalized over the next four to six months by having a consultant do a "screening process" for the Board that would provide a list of various pollution controls and the approximate costs to install and operate them at a future Board meeting. Board members would then decide whether to perform a feasibility study on one or more of the alternatives. This would also require a regulatory analysis. Mr. Koshire said it could take up to two years to make a decision on this subject. Mr. Hunziker asked how we would pay for this. He said that if there is interest in the community to pay for what the REFC is suggesting, let's look at the impact on rate payers up front and not wait until the last minute. Mr. Koshire stated that price and reliability are what the customers wanted in the last RPU customer survey. Mr. Jibben stated that Sherco spends $300 million on pollution control. The Board directed staff to start the screening process.
12. Mr. Hunziker moved to adjourn the meeting, seconded by Mr. Jibben. All voting "AYE" The meeting was adjourned at
Approved by the Board: