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 23, 2006, AT 4:30 P.M.

 

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

 

Present:            Commissioners Bloomquist, Muskovitz,  Park, and Sipola.           

Absent: Raukar. 

 

Also Present:    Terry Leoni, General Manager; Bill Hafdahl – Director-Finance & Administration; Sue Lalli, Public Relations Supervisor; Doug Ganoe – Director of Operations; City Councilor Rob Raplinger.   

 

Commissioner Sipola received a request to check on steam service charges being made to a property owner for steam service to 120 2nd Street South in conjunction with the owner requesting voluntary disconnection from the steam system at this address.  The structure located at this address has been demolished and there are no plans to rebuild at this location.  The Director of Operations, Doug Ganoe, will check into this matter and contact the property owner. 

 

At the request of Minnesota Power, a letter was sent regarding notice of termination of the Municipal Service Agreement between the City of Virginia Public Utilities’ Commission and Minnesota Power that expires December 31, 2007.  The December 31, 2005 letter serves as notice of termination of the aforementioned Agreement.  It is the intent of the Virginia Public Utilities Commission to exercise the December 31, 2007 termination date.  Our Agreement allows for early termination by mutual consent of both parties.  From our ongoing discussions, and in light of our changing circumstances and operational condition, it is our intent to continue to work towards a mutually agreeable, revised contract agreement to be effective January 1, 2007.  The Department knows that Minnesota Power is well aware of the dynamics of the Department’s biomass project.  In light of those dynamics, the Utility is confident that both parties will be able to come to terms on a power supply agreement that is mutually beneficial to both Minnesota Power and the Virginia Public Utilities Commission. 

 

Moved by Park and supported by Bloomquist that financial Resolution No. 5071  authorizing the payroll dated January 12, 2006 in the amount of $9,975.60, checks #43978 through #44006 and the payroll dated January 19, 2006 in the amount of $92,144.26, checks #44007 through #44029 and direct deposits #8810 through #8859 and bills dated January 10, 2006 through January 23, 2006 in the amount of $784,611.87, checks #73013 through #73086, and wire and electronic transfers in the amount of $1,183,645.99 and the minutes of the regular commission meeting held on January 9, 2006 be approved as  presented.  Motion carried.

 

LEA minutes from meetings held on November 15, 2005 and January 17, 2006 were presented.  Construction activities currently completed and underway at the Virginia Power Plant were covered.  Ash silo foundations are being put into place; installation of the 12” sanitary sewer has begun; Northern Erectors is installing walls for support of the Plant's north bay and should be complete within the next three weeks at which time Phase 2 of the demolition phase will begin.  Parts for the precipitators are arriving.  Mr. Leoni reported that the project may be eligible for federal clean renewable energy bonds and an application is being made by LEA.  This application should be submitted by April 26, 2006.  Decision on LEA’s eligibility should be made in Washington soon.

 

The General Manager noted there is nothing to report on the Quad City’s Tennis Building Project at this time.  The Utilities is awaiting further notice from the project’s coordinators.

 

After discussion it was moved by Park and supported by Muskovitz that the Revised Safety Eyewear Policy No. 700-15 be approved as amended.  Motion carried.  Amendment will be addressed by slight clarification wording changes to item 6.2 on page one of the Policy and Procedure as presented.

 

Due to the announcement of pending retirements on or just after December 31, 2006 and the affect on the Department, the General Manager reviewed a request to authorize management to implement personnel relocations, advancements, and new hirings as covered on the new organizational chart and list of recommendations for merit-based salary adjustments presented.  Moved by Bloomquist and supported by Park to authorize management to implement the relocations, advancements, and new hirings as covered on the

 

Carried forward

 

City of Virginia

Public Utilities Commission

Meeting Minutes

January 23, 2006

Brought forward

 

organizational chart and list of recommendations for merit-based salary adjustments as presented and to move Doug Ganoe to the position of Director of Operations Production working with Jeff Marwick and Brian Ford over the next year and during construction of the new #11 wood-fired boiler; change the position title of Brian Ford to Supervisor Production; advance Don Rindfuss (currently Engineering Technician / former Lineman) to the position of Director Operations Distribution (electric, gas, engineering, customer service); hire Greg French (Civil Engineer/currently project manager for SEH) to the position of Director Operations Distribution (steam, water, construction, customer service).   Motion carried.

 

The General Manager reported that the League of Minnesota Cities had noted recently that the Department’s Safety Program was lacking in one area and that certain training should be obtained to bring the Program into compliance.  Moved by Park and supported by Muskovitz to authorize the attendance of the Director of HR/Safety and the Safety and Training Coordinator at the Respiratory Protection Program development seminar sponsored by the Minnesota Safety Council in St. Paul, Minnesota on February 21-22, 2006 at a total estimated cost of $798 to obtain the training needed to help bring the Department’s Safety Program into compliance in all areas required.  Motion carried.

 

After discussion, it was moved by Bloomquist and supported by Park that Management be authorized to reimburse the Director of Finance & Administration for additional tests that were billed to the Director’s medical insurance as the tests were required in conjunction with his pre-employment physical for the total $953.61 charged.  Motion carried.

 

The Director of Finance and Administration reported work on the AMR Projects continues.  Installation of AMR equipment is underway in the Ridgewood area.  AMR equipment is currently reading meters in the Midway area for monthly utility billings.  

 

Minnesota Council 65 AFSCME AFL-CIO Local 739 submitted their Notice of Desire to Negotiate for the labor contract expiring March 30, 2006.  The General Manager and the Director – HR / Safety are currently setting up negotiation strategies and, after discussion, it was moved by Park and supported by Muskovitz that the General Manager and the Director – HR / Safety handle the upcoming negations for the new contract.  Motion carried.  A letter will be sent to AFSCME containing continuing issues for the negotiations and the Commission will be kept informed on the status of issues covered.

 

The General Manager reported that he and the Director of Finance and Administration would be meeting on January 24, 2006 with the City Council Committee-of-the-Whole to discuss the 2006 Street and Alley Committee Projects involving work requested from the Utility.

 

Financial reports presented were reviewed.

 

There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 5:25 p.m. 

 

ATTEST:                                                                      APPROVED:

 

 

 

 

_______________________                                      ___________________________

Jackie Park, Vice President                                           Dr. Don Sipola, President