RPU BOARD MEETING MINUTES
Members Present: Mr. Hunziker, *Mr. Jibben, Mr. Utz, and Mr. Landwehr
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"
3. Mr. Landwehr opened the meeting for comments from the public. No one asked to address the Board.
4a. Mr. Woodworth, Manager of Engineering, provided an update on the Highway 52 construction project and how it would impact the electric and water utilities. The overall transmission line Q3 relocation project is included in the budget. Mr. Hunziker moved to approve a contract agreement with L.E. Myers Company for the Q3 relocation project, 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 the L.E. Myers Company and to request the Mayor and the City Clerk to execute the agreement for Transmission Line Q3 Relocation
The amount of the contract agreement to be TWO HUNDRED EIGHTY-ONE THOUSAND FIVE HUNDRED FORTY-TWO AND 28/100 DOLLARS ($281,542.28) and the L.E. Myers Company being lowest responsible bidder.
4b. The construction of well #38 was discussed. The well is to be completed by March 2004. Construction is necessary because of continuing development in the northwest part of the City.
* Mr. Jibben entered the meeting at this time.
Mr. Hunziker moved to approve a contract agreement with Thein Well Company, 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 Thein Well Company, and authorize the Mayor and the City Clerk to execute the agreement for Construction of Municipal Well 38
The amount of the contract agreement to be TWO HUNDRED TWENTY-FOUR THOUSAND TWO HUNDRED SEVENTEEN AND 00/100 DOLLARS ($224,217.00) and Thein Well Company being lowest responsible bidder.
5. Mr. Utz announced that he would abstain from the voting and discussion regarding the proposed Amendment to the Site Agreement with Rochester CellTelCo Partnership, d/b/a AT&T Wireless Services. Mr. Rovang, RPU Senior Civil Engineer, informed the Board that the vendor, AT&T, wishes to replace its large monopoles at the Baihly Water Tower Site with smaller antennas. Mr. Hunziker moved to approve the Amendment, seconded by Mr. Jibben.
3 Voting "AYE"
1 Abstain (Mr. Utz)
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, to amend the existing Site Agreement dated May 11, 1998, with Rochester CellTelCo Partnership, d/b/a AT&T Wireless Services, a District of Columbia partnership, by AT&T Wireless Services of Minnesota, Inc., its general Partner, a Nevada corporation, and to request the Mayor and the City Clerk execute the amendment for
Replacing Two (2) Monopole Antennas and Appurtenances with
Six (6) Flat Panel Antennas & Appurtenances at the Baihly Water Site
6. Change Order #1 to Purchase Order Agreement 46-257 was discussed. The Change Order is necessary to replace some bearings on the Cascade Creek Unit 1 as a result of a recent inspection of the unit. The is a non-budgeted item which will go to the Council for approval due to the dollar amount involved. Mr. Schlink, Manager of Power Production, stated that Mr. Adkins, City Attorney, would also review the terms and conditions of the agreement with Siemens Westinghouse. Mr. Jibben moved to approve the change order, 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 Change Order #1 to Purchase Order Agreement 46-257 with Siemens Westinghouse for
Professional Services to Perform Tilting Pad Bearing Modification
Cascade Creek Unit 1
The amount of the Change Order to be $165,589.00, plus a 10% contingency to cover any unanticipated repairs when the machine is disassembled, for a total of ONE HUNDRED EIGHTY-TWO THOUSAND ONE HUNDRED FORTY-EIGHT AND 00/100 DOLLARS ($182,148.00).
7. An Addendum to the Participation Sales Agreement between the City of
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 an Addendum to the Participation Sales Agreement between the City of Rochester and Minnesota Municipal Power Agency and that the Common Council authorize the Mayor and the City Clerk to execute the addition of Article IX Coal Inventory
8. In 1997, the Board approved Mr. Koshire, General Manager, as the Southern Minnesota Municipal Power Agency (SMMPA) member representative. At this meeting, the Board was requested to appoint Mr. Lorber, RPU Director of Operations, as the alternate SMMPA member representative. Mr. Utz moved to appoint Mr. Lorber as the SMMPA alternative representative, seconded by Mr. Jibben. All voting "AYE"
BE IT RESOLVED by the Public Utility Board of the City of Rochester, Minnesota, that the Board appoints Walter N. Lorber as Alternate Representative to the Southern Minnesota Municipal Power Agency effective
9. A revised resolution proclaiming October 5 – 11 as Public Power Week was distributed during the meeting. Mr. Hunziker moved to approve the resolution, seconded by Mr. Utz. All voting "AYE"
Proclamation recognizing Public Power Week, October 5-11,
and how RPU powers our lives throughout the year
WHEREAS, we, the citizens of Rochester, MN, place high value on local control over community services and therefore have chosen to operate a community-owned, locally controlled, not-for-profit electric utility and, as consumers and owners of our electric utility, have a direct say in utility operations and policies; and
WHEREAS, RPU provides our homes, businesses, farms, social service, and local government agencies with reliable, efficient, and cost-effective electricity employing sound business practices designed to ensure the best possible service at not-for-profit rates; and
WHEREAS, RPU is a valuable community asset that contributes substantially to the well-being of local citizens through energy efficiency, customer service, environmental protection, economic development, and safety awareness; and
WHEREAS, RPU is a dependable and trustworthy institution whose local operation provides many consumer protections and continues to make our community a better place in which to work and live;
NOW, THEREFORE BE IT RESOLVED: that RPU will continue to work to bring lower-cost, safe, reliable electricity to community homes and businesses just as it has since 1894, the year when the utility was created to serve all the citizens of Rochester; and
BE IT FURTHER RESOLVED: that the Mayor and Common Council of the said City are requested to designate the week of October 5-11 as the 17th annual Public Power Week in order to honor RPU for its contributions to the community and to make its consumer-owners, policy makers, and employees more aware of its contributions to their well-being and how it makes their lives powerful; and
BE IT FURTHER RESOLVED: that our community joins hands with more than 2,000 other public power systems in the
10. Mr. Koshire, General Manager, provided the following report:
a. At a recent American Public Power Association (APPA) meeting he attended, it was noted that the federal government will have more input on citing bulk transmission. APPA wants to make sure utilities maintain local control. In addition, several provisions have been added to the comprehensive federal energy bill which should come out of conference committee in a few weeks.
b. RPU staff continues to monitor the progress of the proposed steam project. All legal briefs are in. The status of the permit should be known in a few months.
c. The lease/lease back of the water utility assets was briefly discussed. This alternative was discussed by the City Council at one of their recent meetings. RPU staff has not looked into the details. Mr. Hunziker stated that the Council is considering a proposal under which it would lease the City's water and wastewater systems to large investors who wish to obtain the depreciation tax credits. The City would lease back those systems, and it would continue to own, maintain and operate the systems. There would be no impact on the daily operations for the customers. He said that several firms have looked at this proposal and said it was okay. No decision has been made by the Council. RPU's electric utility assets are not being considered because of its bond covenants with the Southern Minnesota Municipal Power Agency (SMMPA).
d. A public meeting will be held at RPU on Thursday, October 30 at to present the results of the emissions control screening study. Appropriate organizations and the media will be invited. RPU's consultant will present the results.
11. The management/financial reports were discussed.
12. Mr. Hunziker moved to adjourn the meeting, seconded by Mr. Utz. All voting "AYE" The meeting was adjourned at
Approved by the Board: