A
REGULAR MEETING OF THE PUBLIC UTILITIES COMMISSION OF THE CITY OF
Commissioner Sipola called the meeting to order at
Present:
Commissioners Marks, Raukar, Bloomquist, Park, and Sipola.
Absent:
None.
Also Present: Terry Leoni, Public Utilities General
Manager; Jeff Marwick, Manager-Electric Generation; Sue Lalli,
Supervisor-Public Relations; Douglas Ganoe, Director-Operations; Lorraine
Ilminen, Supervisor-Administration; City Councilors Carl Baranzelli and Steve
Peterson; Customer Darwin Alar.
The following reports were
presented to the Commission for their information:
FINANCIAL OPERATING STATEMENTS AND LIST OF INVESTMENTS
Customer
Darwin Alar addressed the Commission regarding the Department of Public
Utilities Customer Mailing (dated December 2004). The mailing informed customers on the newly
adopted policy requiring access to read meters, for billing purposes, a minimum
of every three (3) months. Mr. Alar
explained the frequent access to read meters is an inconvenience for him and he
believes it is an added cost for Utility customers. Mr. Alar presented and reviewed a
list of alternate options for the Commission to consider for efficiency and
economics. Commissioner Marks explained
with the six-month reads, it was sometimes eight or more months before the
Utility could access a property that resulted in customers getting large
rebates or they were required to pay large bills. Mr. Leoni added the policy was not just
about reading meters but checking that systems were operating efficiently, and
to make sure meters are sealed and customers are not taking advantage of the
utilities through diversion. After
further discussion, Commissioner Sipola mentioned the Utility is moving forward
with a remote meter reading program, starting with Midway residents in
2005. The Commission suggested, since
the three-month meter reads are an inconvenience for Mr. Alar, he should speak
with Mrs. Lalli and Mr. Ganoe on installing remote meter reading devices to his
existing meters. Mr. Leoni added this
does not limit the Utility under the right of entry for proposes of inspecting,
repairing, reading meters, connecting or disconnecting the municipal utility
service. The Commission thanked Mr. Alar
for appearing before the Commission.
Management
presented and reviewed correspondence sent to the Virginia City Attorney
regarding the Park Inn property that recently sold in bankruptcy court on
December 30, 2004. Management reviewed a
summary showing the utility bill amounts owed on the Heyde Hospitality
account. No action was taken.
Moved by Park and supported by Raukar that financial Resolution #5044 authorizing the first half of December
2004 payroll in the amount of $90,921.49, checks #43246 through #43268 and
direct deposits, and bills dated December 25, 2004, in the amount of
$1,144,603.58 checks #70628 through #70677, and the second half of December
2004 wire and electronic transfers; And Resolution
#5045 authorizing the second half of December 2004 payroll in the amount of
$84,373.70, checks #43269 through #43291 and direct deposits, and bills dated
January 10, 2005, in the amount of $915,485.76, checks #70678 through #70680
and #70693 through #70773, and the first half of January 2005 wire and
electronic transfers are adopted; and
the minutes of the regular meeting held on December 13, 2004 is approved as
presented. Motion carried. Commissioner Raukar requested Management
provide an explanation at the January 24, 2005, meeting as to why the Virginia
Public Utilities is using the Hibbing Credit Bureau in lieu of the Virginia
Credit Bureau for collections.
Management
presented and reviewed the December 2004 injury summary report. Three accidents were reported: A chemical splashed out of barrel into
employee's eye and face (no time lost); Employee burnt right wrist on hot
fittings (no time lost); Employee felt pain in back while standing and lifting
a five pound basin (time lost).
At
the December 13, 2004 meeting, the Commission was presented the General Natural
Gas Service Installation Policy and Utility Fee Schedule for its first
reading. Because the December 27, 2004
meeting was canceled, the General Natural Gas Service Installation Policy and
Utility Fee Schedule was presented for its second reading at this meeting. Moved by Raukar and supported by Park to
adopt the General Natural Gas Service Installation Policy and Utility Fee
Schedule as presented, to be effective retroactive to January 01, 2005. Motion carried.
carried forward
Public Utilities Commission
Meeting
Minutes
January
10, 2005
Page
2
brought forward
Mr. Leoni updated the Commission on the Biomass
Project. Mr. Leoni mentioned he did not
exercise the authorization given to have the Purchase Power Agreement (PPA)
signed. Constructing the transmission
language continues to delay the PPA. The
questions remaining are 1) who will pay and repair the transmission line if
there is a failure. (Xcel Energy does
not want the fees transferred to their customers); 2) how will the Utilities be
paid for that curtailment (the Utilities want payment even if there is a
transmission failure). At the
Commission’s joint Finance and Personnel Committee meeting held earlier today,
Mr. Leoni presented the Commission an overview packet and cash flow packet on
the Biomass Project; he will present these packets to the Mayor and City
Councilors when he makes a formal presentation on the biomass project at the
upcoming City’s Committee of the Whole meeting.
Management presented the finalized 2005 Capital and
Operating & Maintenance budgets based on discussion on the budget review of
December 13, 2004. After review of the
budget information at their Finance Committee meeting of the whole held on
January 10, 2005, it was moved by Marks and supported by Raukar to approve the
2005 Capital and Operating & Maintenance budgets as presented. Motion carried.
Management presented five utility billing accounts
totaling $142.22 for write off. Four
accounts totaling $84.24 are too small to turn in for collections and a fifth
account with a balance of $57.98 is for a deceased customer. Moved by Park and supported by Raukar to
approve writing off the five customer utility billing accounts totaling
$142.22. Motion carried.
Mr. Leoni requested authorization to attend the
Clean Energy Resource Teams’ (CERT) conference to be held on February 28, 2005,
at the St. Cloud Civic Center. The
purpose of the conference is to bring together CERT teams and technical experts
from across the state to share success stories of community renewable energy
and energy efficiency projects to learn what else can be done and find the
resources to make it happen. Moved by
Raukar and supported by Park to authorize the General Manager to attend the one
day conference on Tomorrow’s Energy in Communities Today to be held on February
28, 2005, in St. Cloud, Minnesota.
Motion carried.
Mr. Leoni requested authorization to attend the
American Public Power Association (APPA) and The Energy Authority’s (TEA) one
and one-half day workshop on the Midwest Independent Transmission System
Operator (MITSO) Implementation. The
topic discussion will be on what MISO means for Municipal Utilities, how MISO
will affect municipally owned utilities and provide information on how
utilities will need to function in this new environment. Moved by Raukar and supported by Marks to
authorize the General Manager to attend the APPA and TEA workshop on MISO
implementation to be held on February 16-17, 2005, in Minneapolis,
Minnesota. Motion carried.
Today at 3:45 p.m., the Commission’s Personnel
Committee of the whole met to discuss personnel issues. Based on discussion at that meeting, it was
moved by Park and supported by Marks to move forward on the Management
Association’s proposal that was presented for discussion. Motion carried.
Mr. Marwick updated the Commission on the No. 5
turbine. Two electric oil pumps were
installed on the No. 5 turbine. They
were experiencing some vacuum leaks. The
plant maintenance crew acid washed the injectors and a contractor came in to do
a helium test to help resolve the vacuum issue. Leaks were found on three to four joints,
which were caulked to get the turbine through the U.R.G.E. test. The turbine operated up to nine Megs during
the U.R.G.E. test. The Maintenance crew
is replacing the caulked joints and they are permanently installing the
electric oil pumps before the unit is put through the extraction test. Mr. Leoni reported the Utility received
$327,000 net out of the $452,061.51 turned in on the No. 5 turbine insurance
claim. The payment takes into account
the $50,000 deduction (damage was estimated at $578,144.04). Claims for the substation rental and for the
damage to the outside distribution have been denied. The Utility will be turning in additional invoices associated with the No. 5 turbine failure totaling $34,926.89.
carried forward
Public Utilities Commission
Meeting
Minutes
January
10, 2005
Page
3
brought forward
Management presented and reviewed the total plant
U.R.G.E. test results. The Virginia
Public Utilities gross generation capacity is rated at 30 MWh and the total
plant U.R.G.E. test average was 31.65 MWh.
This very favorable U.R.G.E. test will warrant in a higher capacity
credit with Minnesota Power over the course of the year.
Mr. Leoni requested authorization to purchase $25
employee appreciation awards for all power plant maintenance and operations
personnel as appreciation for the extra effort these employees put forth during
the difficulties the power plant experienced over the year and for the
exceptional U.R.G.E. test results.
Moved by Marks and supported by Park that at the discretion of the
General Manager, the Virginia Public Utilities provide employee appreciation
awards to both the power plant maintenance and operations personnel for cost
saving efforts. Motion carried.
There
being no further business to come before this meeting, President Sipola
declared this meeting is adjourned.
Adjournment at 5:48 p.m.
ATTEST: APPROVED:
___________________________ ______________________________
Jerry
Marks, Secretary Dr.
Don Sipola, President