A REGULAR MEETING OF THE PUBLIC UTILITIES COMMISSION OF THE CITY OF VIRGINIA, MINNESOTA, WAS HELD AT THE OFFICE OF THE DEPARTMENT OF PUBLIC UTILITIES ON MONDAY, JANUARY 12, 2004, AT 4:30 P.M.

 

Commissioner Sipola called the meeting to order at 4:35 p.m.

 

Present:  Commissioners Marks, Raukar, Park, and Sipola.

Absent:   Commissioner Bloomquist.

 

Also Present:    Terry Leoni, General Manager: Lynn Rosebush, Director-Finance & Administration;                   Lorraine Ilminen, Supervisor-Administration; Sue Lalli, Public Relations Supervisor; Douglas Ganoe, Director-Operations; City Councilors Steve Peterson, Carl Baranzelli, and          Rob Raplinger; Ron Lackner, City Finance Director; Tom Butorac, City Attorney.

 

The following reports were presented to the Commission for their information:

FINANCIAL OPERATING STATEMENTS AND LIST OF INVESTMENTS

 

Moved by Park and supported by Raukar that financial Resolution #5016 authorizing the first half of December 2003 payroll in the amount of $89,895.81, checks #42545 through #42568 and direct deposits, and bills dated December 25, 2003, in the amount of $858,120.58 checks #68353 through #68427 and the second half of December 2003 wire and electronic transfers; and Resolution #5017 authorizing the second half of December 2003 payroll in the amount of $89,098.42, checks #42569 through #42591 and direct deposits, and bills dated January 10, 2004, in the amount of $704,115.92, checks #68428 through #68557 and the first half of January 2004 wire and electronic transfers are adopted; and the minutes of the regular meeting held on December 08, 2003 is approved as presented.  Motion carried.

 

Mr. Leoni introduced the two newly elected City Councilors Rob Raplinger and Carl Baranzelli to the Commission, and mentioned the two new Councilors along with Councilor Steve Peterson are the Council Liaison’s for the Virginia Public Utilities.

 

The December 2003 injury summary report was reviewed.  An employee experienced pain in his lower back and hip while pulling wire through underground conduit.

 

Commissioner Sipola and Mr. Ganoe updated the Commission and newly appointed City Councilors on the voluntary steam conversion proposal for 12 customers on the 700 and 800 blocks of 7th and 8th Streets South.   Commissioner Sipola reported after further investigation, if all 12 customers do not voluntarily agree with the offer, the Commission would not be forced to involuntarily terminate by certified letter giving 2 years notice because the Commission can discontinue service to a non-commodity utility line.  After the review, the consensus was everyone should be treated the same for receiving the incentive being offered.  The Commission agreed Commissioner Sipola and Mr. Ganoe should hold a second meeting with these 12 customers.

 

Mr. Leoni reported last Friday he learned there would be a biomass meeting at the Xcel Energy offices in Denver, Colorado.  Also, Mr. Leoni was made aware that a contract with Xcel Energy and NGP has been signed.  NGP is willing to relocate all or a portion of 35 megawatts from the Waseca site to Hibbing and Virginia, but Xcel and the Minnesota Public Utilities Commission have to agree to move the project.  The Waseca site is a green field site and must be up and running by 2007 (a new biomass power generating facility would have to be built and a forest grown on approximately 3,000 acres of prime farmland) and the Utilities in Virginia and Hibbing are uniquely placed to meet this demand in a very short timeframe.  The Hibbing and Virginia facilities have a combined capacity of 60 megawatts of which 30 megawatts or fifty-percent is currently unused and northeastern Minnesota already has the forestlands available for harvest.  Since there is demand for biomass-produced energy in Minnesota, it would be beneficial for both Hibbing and Virginia Utility Managers and one Commissioner from each Utility attend the meeting in Colorado.  Moved by Marks and supported by Raukar to authorize Terry Leoni and Commissioner Sipola to attend the biomass meeting at the Xcel Energy’s office in Denver, Colorado on January 20, 2004.  Motion carried.  Mr. Leoni reviewed the economic benefits for this project such as job retention and creating logging and construction jobs, keeping purchased fuel cost dollars locally, receiving an operating and maintenance

 

Carried forward

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Meeting Minutes

January 12, 2004

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Brought forward

 

agreement to run and repair their equipment, extending the life of the steam system and receiving favorable pricing on the purchase of steam heat.  Management will continue to keep the Commission apprised on the ongoing project negotiations.

 

Three property owner deposit appeals were presented and reviewed.  Moved by Raukar and supported by Marks to accept the Administrative Appeals Committee’s recommendation that the deposit requirement for Paul Pollock’s account #109.7240.2 be waived with the understanding if the account should appear on the disconnect list once within the next 12 month period, an immediate deposit of two times the highest bill in the past 12 month period will be due and payable with no option for appeal.  Motion carried.  Moved by Raukar and supported by Park to accept the Administrative Appeals Committee’s recommendation that the deposit requirement for Peter Bertucci’s account #201.0802.1 be waived with the understanding if the account should appear on the disconnect list once within the next 12 month period, an immediate deposit of two times the highest bill in the past 12 month period will be due and payable with no option for appeal.  Motion carried.  Moved by Raukar and supported by Park to accept the Administrative Appeals Committee’s recommendation that the deposit requirement for Vicki LaValley’s account #208.5985.2 be maintained and allow Ms. LaValley to enter into a payment arrangement for the deposit amount of $1,450. 

Voting Aye:     Raukar, Park, and Sipola

Voting Nay:     Marks                                                                                                      Motion carried.

 

Management presented correspondence received from the President of Energy Technology Group indicating they could not take on the project for the remote meter reading (AMR) device installation.  Management’s obstacle is finding a vendor that can supply AMR devices that are a true remote reading device and supplying AMR devices for steam meters (AMR device vendors can be found for electric, water, and gas meters).  To date the only cost to the Utility for the AMR project has been manpower hours and there still is bonding dollars available for the project.  Management will continue to talk to other vendors.  Commissioner Sipola suggested the Utility notify The Energy Technology Group that if they can improve their product, we may be able to consider them.

 

Authorization was requested for attendance to the Minnesota Municipal Utilities Association’s (MMUA) Legislative Rally to be held on February 25-27, 2004, in St. Paul, Minnesota.  Moved by Raukar and supported by Marks to authorize Mr. Leoni, appointed staff members, and any Commissioner to attend the Minnesota Municipal Utilities Association’s Legislative Rally to be held on February 25-27, 2004 in St. Paul, Minnesota.  Motion carried.

 

Management reviewed and recommended position awards for the Meter Reader and Temporary Fuelhandler/Utilityman positions. Moved by Marks and supported by Raukar to award Frank Peterson the Meter Reader position with a start date of January 02, 2004, and 67 shift probationary period.  Motion carried.  Moved by Marks and supported by Raukar that the Temporary Fuelhandler/Utilityman position is awarded to Daniel Meados with a start date of January 05, 2004.  Motion carried.

 

Management recommended the Northstar Consulting contract be renewed for 2004 and explained it is critical for the Virginia Public Utilities to stay on top of MnOPS and keep the Utility updated on regulatory issues.  Contract renewal helps the Utility with record keeping and to stay informed; it will not include training required by the State of Minnesota for Operator Qualification, thus the 2004 contract is a 5% decrease from the 2003 contract.  Moved by Marks and supported by Raukar to renew the Northstar Consulting contract for 2004 as presented.  Motion carried.

 

 

Carried forward

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Meeting Minutes

January 12, 2004

Page 3

Brought forward

 

On January 12, 2004 at 3:45 p.m. a Commission Personnel Committee meeting of the whole was held to discuss staffing.  As a result of that meeting discussion, it was moved by Marks and supported by Raukar to accept            Ron Lackner’s letter dated November 20, 2003, with an effective date of June 01, 2004 to discontinue the City Finance Director’s services at the Virginia Public Utilities. 

            Voting Aye:     Raukar, Marks, Park

            Voting Nay:     Sipola                                                                                                     Motion carried. 

 

Management updated the Commission on the Highway 53 Corridor cleanup project (Management is working with a DEED - Brownfield’s & Community Assistance Representative for reimbursement on DEED cleanup/investigation grant funded projects already paid by the Virginia Public Utilities since 1998; money reimbursed to the Utility can be used for property improvements and Management will lay out the future goal to the Commission at a future meeting). 

 

The City of Virginia received notification on properties forfeited to the State of Minnesota on November 21, 2003 for non-payment of real estate taxes and Management is requested authorization to work with the City of Virginia on acquiring the property at 621 3rd Street South for a lay down area.  Moved by Park and supported by Raukar to authorize Management to proceed on acquiring the property at 621 3rd Street South.  Motion carried. 

 

Heyde Hospitality bankruptcy filing was reviewed (Management will keep the Commission informed on the collection progress for the delinquent utility account). 

 

Management reviewed progress on the Phase II steam abandonment program with a December 31, 2003 deadline to convert. 

 

The November 2003 combined operating statement was reviewed.

 

Correspondence regarding a customer water service leak was reviewed and it has been resolved.

 

There being no further business to come before this meeting, it was moved by Marks and supported by Raukar that this meeting is adjourned.  Motion carried.

 

Adjournment at 5:40 p.m.

 

ATTEST:                                                                                              APPROVED:

 

 

___________________________                                                                  ______________________________

Jerry Marks, Secretary                                                                                  Dr. Don Sipola, President