committee of the whole meeting items

CITY OF ROCHESTER COUNCIL AGENDA Room 104, City Hall 201 Fourth Street SE

Committee of The Whole July 10, 2017

03:30 PM

COMMITTEE OF THE WHOLE MEETING ITEMS

1 RPU Department Update (attachment) / Mark Kotschevar - 3:30 p.m.

2 Armory Proposals / Administration - 3:50 p.m.

3 Heart of the City Update (attachment) / Jon Buggy, RSP - 4:20 p.m.

4 Review of New C.O.W. Agenda and 2017 C.O.W. Meeting Schedule (attached)

5 Other Business

Rochester Public Utilities, 4000 East River Road NE, Rochester, Minnesota 55906-2813 telephone 507-280-1540 .facsimile 507-280-1542 .website www.rpu.org

VISION We will set the standard for service.

CORE VALUES Safety Integrity Service

Stewardship Accountability Skill

MEMORANDUM

DATE: June 29, 2017 TO: Committee of the Whole FROM: Mark Kotschevar – General Manager SUBJECT: Departmental Review Rochester Public Utilities provides electric and water service to the citizens of Rochester. In addition to retail sales of electricity and water, RPU also sells wholesale electricity to the Midcontinent Independent System Operator (MISO) market and wholesale steam to Mayo. Below is a summary of year-end 2016 budget to actual results, 2016 highlights, 2017 year to date financial results, 2017 goals/plans:

Year End 2016 Budget to Actual Results (in thousands)

Electric Budget

Electric Actual Variance

Water Budget

Water Actual Variance

Total Revenues 156,935$ 156,435$ (500)$ 9,203$ 9,461$ 258$ Operating Expenses 137,780 132,193 5,587 8,995 9,053 (58)

Operating Income 19,155 24,242 5,087 208 408 200

Non Operating Expenses 3,446 3,617 (171) (54) (45) (9)

Income Before Transfers 15,709 20,625 4,916 262 453 191 ILOT Transfers to City 8,738 8,470 268 365 363 2 Cash Transfers In - 3,062 3,062 - - -

Net Position 6,971$ 15,217$ 8,246$ (103)$ 90$ 193$

Capital Improvements 38,310$ 36,857$ 1,453$ 2,720$ 2,183$ 537$

1

Packet Pg. 2

July 5, 2017 Page 2 2016 Highlights

• Rochester continued to grow with 1520 new electric customers and 481 new water customers. This reflects a 56% increase in electric customers over 2015.

• Both electric kilowatt hour sales and water ccf sales were up slightly compared to 2015. This was due in part to the increase in customers. In addition, RPU’s Conserve and Save rebate program helped our customers save over 24,000,000 kWh and 2,700,000 gallons of water.

• Completed construction on the new St. Bridget’s water tower. The new tower will add 500,000 gallons on needed water storage to support the St. Bridget’s area.

• Completed $41,800,000 in capital improvement projects identified in our CIP budgets. Of that total, a good portion was related to our investment in the CapX project and the Westside Energy Station with the remaining being additions to the electric and water systems funded from cash. In lieu of tax payments of $8,500,000 and $400,000 were transferred by the electric and water utilities to the City’s general fund.

• The CAPX2020 project was complete by years end. The remaining 345,000 volt segment was placed in service in September. This marks the end of a 10 year, $45,000,000 investment to secure long term transmission service for the City.

• Construction started on the new 47-megawatt Westside Energy Station. Site grading and foundations were completed before year-end. The anticipated in service date is May of 2018.

• Completed exterior restoration of the Lake Zumbro hydro power house. This is the first extensive restoration of the building since it was built in 1919.

• Completed remodeling of the electric control center at the service center. • Implementation of a new customer care and billing system began. This involves a core

team of 6 RPU employees along with consultants that will be dedicated to the project for 18 months.

• Began design and construction on a new 161,000 volt substation to serve a new data center customer.

• Revised our backflow prevention program to be compliant with new plumbing code changes.

• Developed a leadership training curriculum for managers and supervisors to help prepare them for future leadership positions due to future retirements. This is part of our overall succession planning process.

1

Packet Pg. 3

July 5, 2017 Page 3

Year to Date (May 31) Budget-to-Actual Results (in thousands)

2017 YTD + Goals/Plans

• Completed the bond issuance for the Westside Energy Station. • Developed a Community Solar offering. • Completed the new Douglas Trail substation. • Complete the construction of the Westside Energy Station. • Implementation of a new customer care and billing software system. It is anticipated this

will go live in early 2018. • Complete the capital improvement projects identified in the electric and water budgets. • Complete the downtown distribution planning study to identify facilities needed and costs

to serve the future electric load growth in the core downtown area. • Continue with the next steps for the water sustainability study. This involves the

refinement of the groundwater model, field verification of impacts, and additional well and stream flow monitoring.

• Develop a long term water main replacement program that can be used for budget and project planning going forward.

• Participated in the University of Minnesota’s Climate-Smart cities program.

Electric YTD Budget

Electric YTD Actual Variance

Water YTD Budget

Water YTD

Actual VarianceTotal Revenues 61,868$ 60,421$ (1,447)$ 3,731$ 3,876$ 145$ Operating Expenses 53,941 52,046 1,895 3,966 3,724 242

Operating Income 7,927 8,375 448 (235) 152 387

Non Operating Expenses 3,030 1,891 1,139 (5) 70 (75)

Income Before Transfers 4,897 6,484 1,587 (230) 82 312 ILOT Transfers to City 3,361 3,267 94 128 129 (1) Cash Transfers In 171 1,855 1,684 - - -

Net Position 1,707$ 5,072$ 3,365$ (358)$ (47)$ 311$

Capital Improvements 26,669$ 19,174$ 7,495$ 509$ 461$ 48$

1

Packet Pg. 4

HEART OF THE CITY DESIGN PRESENTATION

HEART OF THE CITY DESIGN TEAMRSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn

3

Packet Pg. 5

MAKE IT ROCHESTER MAKE IT A DESTINATION MAKE IT BIG + KEEP IT SMALL REVEAL THE UNSEEN

MAKE IT ABOUT LIFE

EMBRACE THE NORTH

MAKE IT ABOUT ART MAKE IT ABOUT HEALING MAKE IT INVITING

MAKE IT BRIGHT MAKE IT CONNECTED MAKE IT GREEN

AUTHENTIC + CONTEXTUAL

DIVERSITY OF EVENTS + ACTIVITIES THROUGHOUT DAY

PROVIDE YEAR-ROUND ATTRACTIONS + EVENTS INTEGRATED + EXPERIENTIAL LIGHTING

HOME GROWN + WORLD RENOWNED

INNOVATIVE + TRANSFORMATIVE + INTERACTIVE

ADA ACCESSIBILITY + SKYWAY, STREET + SUBWAY

BLEND BIG CITY + SMALL CITY, OLD + NEW

MOMENTS OF REPOSE IN AN URBAN SETTING

URBAN + NATURAL

REVEAL THE MAGIC OF MAYO + SHARE STORIES

FLEXIBLE + DIVERSE PLACES TO GATHER

DESIGN PRINCIPLES


3

Packet Pg. 6

HEART OF THE CITY INITIATIVES

GONDA

BLDG

KAHLER

HOTEL

MARRIOTT

HOTEL

WELLS

FARGO

CHATEAU

THEATER

SHOPS @

UNIVERSITY

SQUARE

BROA

DWAY

AVE

NUE

3RD

AVE

CENTER ST

2ND ST

#1 2ND AVENUE PLAZA

#2 1ST AVE + THE ALLEY

#3 MARKET PLAZA

#4 THEATER SQUARE

#5 ART

#1 2ND AVENUE

#3 MARKET PLAZA#5 ART

#5 ART#4 THEATER SQUARE

#2 1ST AVENUE+ THE ALLEYHEART OF THE CITY DESIGN TEAM

RSP + Coen+Partners + 9.Square + HR&A Advisors + Kimley-Horn

3

Packet Pg. 7

EARTH/SKY/WATER WITH FLEXIBLE OPEN PLAZA


3

Packet Pg. 8

1ST AVENUE PLAZA


3

Packet Pg. 9

THE ACTIVE ALLEY


3

Packet Pg. 10

THE MARKET PLAZA WITH POP-UP CAFES + GARDENS


3

Packet Pg. 11

THEATER SQUARE SUMMER FOUNTAIN


3

Packet Pg. 12

ICONIC ART

The Artery | Prepared for Heart of the City by Eric Anderson | Mar 9, 2017

THE ARTERY - ERIC ANDERSON

LOZANO-HEMMER

JANET ELCHEMAN

3

Packet Pg. 13

SKY SPACE3

Packet Pg. 14

MAKE IT ROCHESTER

3

Packet Pg. 15

Printed On: 7/6/2017 Page 1 Cow Agenda 2017

City of Rochester - Rochester City CouncilCommittee of the Whole Discussion Items - 2017

Item Discussion ItemResponsible Dept. /

ProponentTime

SensitivityNext

Review Date Impact Review DateQuarter 1 - Jan., Feb., Mar.Discuss possible council retreat logistics Council; staff 1Q TBD Discussion 1/9/2017 - Gathered ideas; will propose dates

Review process for Broadway at Center project Council; staff 1Q TBD Discussion 1/9/2017 - Reviewed ordinance; Planning will propose possible changes

Preliminary review & discussion of Armory appraisels

Council; staff 1Q 2/6/2017 Discussion 1/18/2017

- Decided to reissue RFP; emphasize sell option

Zero deaths presentation Jessica Schleck, MNDot 1Q None Discussion 1/23/2017 - Received presentation

Integrated transit studies Staff 1Q None Discussion 1/23/2017 - Received update on study

Interim parking ordinance discussion Staff 1Q None Discussion 1/23/2017 - Received report

Bidding specifications; parking ramp #6 R. Freese 1Q None Discussion 1/30/2017 - Received report

Design guidelines review T. Spaeth; John Carmody 1Q None Discussion 1/30/2017 - Received report; ordinances proposed

Staff Authorized Changes to Approved CUP's Administration 1Q Discussion 2/6/2017

Revised Development Incentive Polices-TIF & Abatement Administration 1Q Discussion 2/6/2017

Armory RFP Administration 1Q Discussion 2/6/2017

DMC Update EDA/Administration 1Q Discussion 2/22/2017

RNeighbors Litter Bit Better report Rene Lafflam 1Q Discussion 2/22/2017

HOC Update RSP Architects 1Q Discussion 2/22/2017

Compass Points presentation Library 1Q Discussion 2/27/2017

Cradle to Career Library 1Q Discussion 3/6/2017

Commons on Mayowood PIF Fee Public Works 1Q Discussion 3/6/2017

All Hazard Mitigation Plan Update K. Jones 1Q Discussion 3/20/2017

Sewer capacity analysis R. Freese 1Q Discussion 3/20/2017

Cab Stand to TNC Parking Changes PD/Admin 1Q Discussion 3/27/2017

Public Arts Master Plan Bari Amadio 1Q Discusson 3/27/2017

Shooting Range's Zoning Planning 1Q Discussion 3/27/2017

Quarter 2 - Apr., May, Jun.

4

Packet Pg. 16




ProponentTime

SensitivityNext

Review Date Impact Review DateClosed Session - A closed meeting to receive a communication from, and to have a discussion with, the City Attorney regarding the status of and the litigation strategy for the case of Rochester City Lines, Inc., v. City of Rochester, Olmsted County District Court File No. 55-CV-12-1003 (involving the City’s 2011-2012 selection of the operator of its publicly-funded bus transit system) and Rochester City Lines Co., v. City of Rochester and Justin L. Templin, Minnesota Court of Appeals File No. A16-1515 (involving the City’s Moderator’s decision rejecting Rochester City Lines’ pre-bid protests filed as part of the City’s 2016 selection of the operator of its publicly-funded bus transit system). The closed meeting will occur pursuant to Minnesota Statutes, Section 13D.05, subd. 3(b).

City Attorney 2Q Discussion 4/3/2017

Ethical Practices Board 2016 Annual Report Audrey Ericksen 2Q Discussion 4/3/2017

Transit Development Plan Transit 2Q Policy 4/3/2017

Geometric layout for the reconstruction of 18th Avenue NW

Public Works 2Q Discussion 4/3/2017

Dept review - Police (prior yr., YTD, goals) Police 2Q Budget 4/10/2017

Municipal broadband RPU/IT 2Q Discussion 4/10/2017

Herbicide Use Policy Public Works 2Q Policy 4/10/2017

Award Bids Parking Ramp #6 Public Works 2Q 4/10/2017

Comprehensive Plan Update Planning 2Q Policy 4/17/2017

Indoor Shooting Ranges Update Planning/Admin 2Q Policy 4/24/2017

Comprehensive Plan Update Planning 2Q Policy 4/24/2017

RDA Annual Report and Funding Request RDA 2Q Budget 4/24/2017

DMC Update DMC/Administration 2Q Discussion 5/1/2017

Inclusionary Housing Plan Admin 2Q Discussion 5/1/2017

Golden Hills School Potential Project CM Wojcik 2Q Discussion 5/8/2017

City DMC Funding Reimbursement Admin 2Q Budget 5/8/2017

Park master plan update Park Dept 2Q Policy 5/8/2017

Dept review - Park & Rec. (prior yr., YTD, goals) Park & Recreation 2Q Budget 5/8/2017

4

Packet Pg. 17




ProponentTime

SensitivityNext

Review Date Impact Review DateElectric Line Extension Policy RPU 2Q Policy 5/8/2017

RPU Utility Billing Software RPU/Public Works 2 Q Discussion 5/15/2017

Storm Water Billing Change Public Works 2Q Policy 5/15/2017

NLC Warranty Program Admin/Public Works 2Q Discussion 5/15/2017

City Administrator Recruitment Update Sharon Klumpp, Waters & Co.

2Q Discussion 6/5/2017

Senior Center (armory) proposals Admin 2Q Discussion 6/5/2017

City Administrator Recruitment Update Sharon Klumpp, Waters & Co.

2Q Discussion 6/12/2017

Public Works Transit Workshop Update Public Works 2Q Discussion 6/12/2017

Dept review - Mayo CC (prior yr., YTD, goals) MCC Commission 2Q Budget 6/12/2017

Office 365 IT 2Q Discussion 6/12/2017

Dept review - Music (prior yr., YTD, goals) Music 2Q Budget 6/19/2017

OpenGov Update IT 2Q Discussion 6/19/2017

SEIM IT 2Q Discussion 6/19/2017

Armory RFP Update Admin 2Q Discussion 6/19/2017

Dept Review - Emergency Management (prior yr., YTD, goals)

Emergency Management 2Q Budget 6/26/2017

Dept review - Airport (prior yr., YTD, goals) Airport 2Q Budget 6/26/2017

Sustainability Coordinator Intro Admin 2Q Discussion 6/26/2017

Quarter 3 - Jul., Aug, Sep.

Ramp #6 Housing RFP Admin 3Q Discussion 7/5/2017

City/Owner Contract Update Public Works 3Q Discussion 7/5/2017

Energy Action Plan Presentation Kevin Bright 3Q Discussion 7/5/2017

Council Retreat Discussion Admin 3Q Discussion 7/5/2017

Dept review - RPU (prior yr., YTD, goals) RPU 3Q Budget 7/10/2017

Heart of City Update Jon Buggy, RSP 3Q Discussion 7/10/2017

Armory Proposals Admin 3Q Discussion 7/10/2017

4

Packet Pg. 18




ProponentTime

SensitivityNext

Review Date Impact Review Date

Dept review - Mass Transit (prior yr., YTD, goals) Mass Transit 3Q Budget 7/17/2017

Dept review - Public Works (prior yr., YTD, goals) Public Works 3Q Budget 7/17/2017

Dept review - Fire (prior yr., YTD, goals) Fire 3Q Discussion 7/17/2017

Revised City Agreement with Non-profit Partners Admin 3Q Discussion 7/17/2017

Dept. review - Building Safety (prior yr., YTD, goals)

Building Safety 3Q Budget 7/24/2017

Dept review - Library (prior yr., YTD, goals) Library 2Q Budget 7/24/2017

Dept review - Theater (prior yr., YTD, goals) Civic Theater 3Q Budget 7/24/2017

Audit review Finance; Smith Schafer 3Q Budget 7/24/2017

Dept review - Administration (prior yr., YTD, goals)

Administration 3Q Budget 7/31/2017


Dept review - City Clerk (prior yr., YTD, goals) City Clerk 3Q Budget 7/31/2017

Dept review - Finance & IT (prior yr., YTD, goals) Finance; Finance-IT 3Q Budget 7/31/2017

New positions - 2018; 5 year plan Administration 3Q Budget 8/7/2017

Accela implementation Update Building Safety 3Q Discussion 8/7/2017

Dept review - City Atty. (prior yr., YTD, goals) Public Works; City Atty. 3Q Budget 8/7/2017

Dept review - HR (prior yr., YTD, goals) Hum. Res. 2Q Budget 8/7/2017

Review board / commission attendance criteria; role & responsibility of advisory groups (CUDE, HPC, etc.); opinion from PASC

M. Hickey 3Q Budget 8/14/2017

DMC WMBE Update Admin 3Q Discussion 8/14/2017

SMIF update SMIF 3Q Discussion 8/14/2017

4

Packet Pg. 19




ProponentTime

SensitivityNext

Review Date Impact Review DateDept review - Art Center (prior yr., YTD, goals) Art Center 3Q Budget 8/21/2017

Electronic Document Management Update Clerk 3Q Discussion 8/21/2017

Public infrastructure acceptance / development Council; Public Works 3Q Discussion 8/21/2017

RCVB Update RCVB 3Q Discussion 8/21/2017

Inclusionary zoning policy Planning 3Q Discussion 8/28/2017

TIF revenues; designated purposes for funds Council; Administration 3Q Discussion 8/28/2017

Bury power lines; policy Council; RPU 3Q Discussion 8/28/2017

Rental property inspection ordinance Bldg. Safety 3Q Policy 8/28/2017

Preliminary property tax discussion Administration 3Q Budget 9/4/2017

District trash hauling Public Works 3Q Discussion 9/11/2017

NLC Service Line Program Admin/Public Works 3Q Discussion 9/11/2017

Public art master plan Administration 3Q Discussion 9/18/2017

2018 CDBG allocation discussion Administration 3Q Budget 9/25/2017

Emerald ash borer plan review Park and Rec 3Q Discussion 9/25/2017

Public transportation study; school district Transit 3Q Discussion 9/25/2017

Quarter 4 - Oct., Nov, Dec.Rochester Amateur Sport Commission report E. Hruska 4Q Discussion 10/2/2017

RCVB Annual Report RCVB 3Q Discussion 10/2/2017


Update on Cascade Lake park Park and Rec 4Q Discussion 11/13/2017

Regional Park; fairgrounds County 4Q Discussion 11/13/2017

Bicycle master plan review BPAC; Public Works 4Q Discussion 11/27/2017

Budget review Staff 4Q Budget 12/4/2017

Transportation Network Company (TNC) review Council; Administration 4Q Budget 12/18/2017

4

Packet Pg. 20

committee of the whole meeting items

Documents