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, FEBRUARY 07, 2005, AT 4:30 P.M.

 

Commissioner Sipola called the meeting to order at 4:33 p.m.

 

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

Absent    None.

 

Also Present:    Terry Leoni, Public Utilities General Manager; Lynn Rosebush, Director-Finance & Administration; Sue Lalli, Supervisor-Public Relations; Douglas Ganoe, Director-Operations; Lorraine Ilminen, Supervisor-Administration; City Councilor Rob Raplinger.

 

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

LIST OF INVESTMENTS

 

Election of officers for the subsequent year was held.  Commissioner Sipola opened the floor to nominations for the office of President.  Commissioner Raukar placed the name of Commissioner Sipola in nomination for President of the Commission for the ensuing year.  Commissioner Sipola called three separate times for further nominations and there being none he declared the nominations for President closed.  Moved by Raukar and supported by Park that the Secretary cast one unanimous ballot for the election of Commissioner Sipola to the office of President of the Virginia Public Utilities Commission for the ensuing year.  Motion carried. 

 

President Sipola then declared the office of Vice President of the Commission open for nominations.  Commissioner Bloomquist placed the name of Commissioner Park in nomination for Vice President for the ensuing year.  President Sipola called three separate times for further nominations and there being none, he declared the nominations for Vice President closed.  Moved by Bloomquist and supported by Raukar that the Secretary cast one unanimous ballot for the election of Commissioner Park to the office of Vice President of the Virginia Public Utilities Commission for the ensuing year.  Motion carried.

 

President Sipola then declared the office of Secretary of the Commission open for nominations.  Commissioner Raukar placed the name of Commissioner Marks in nomination for Secretary for the ensuing year.  President Sipola called three separate times for further nominations and there being none he declared the nominations for Secretary closed.  Moved by Raukar and supported by Park that the Secretary cast one unanimous ballot for the election of Commissioner Marks to the office of Secretary of the Virginia Public Utilities Commission for the ensuing year.  Motion carried.

 

Moved by Park and supported by Raukar that financial Resolution #5048 authorizing the second half of January 2005 payroll in the amount of $167,089.89, checks #43344 through #43389 and direct deposits, and bills dated February 10, 2005, in the amount of $1,165,631.05 checks #70851 through #70853, #70856 through #70863, and #70865 through #70950; and the first half of February 2005 wire and electronic transfers; and the minutes of the regular meeting held on January 24, 2005 is approved as presented.  Motion carried. 

 

Management presented and reviewed the January 2005 injury summary report.  One accident was reported.  An employee knelt on a nut bruising his knee.  No time was lost.

 

Mr. Leoni reported the Power Purchase Agreement (PPA) is signed and will be filed with the Minnesota Public Utilities Commission (MPUC) this week. 

 

Commission members discussed their availability to attend the second regular February 2005 meeting.  Because some Commissioners may be away at various times in February, it was moved by Bloomquist and supported by Park to cancel the second regular Commission meeting in February 2005.  Motion carried.  Moved by Raukar and supported by Marks to authorize the Director of Finance/Administration to process the payment of  February 25, 2005 accounts payable and the second half of February 2005 payroll, for the Commission’s approval at the first regular meeting in March 2005.  Motion carried.

 

carried forward


Public Utilities Commission

Meeting Minutes

February 07, 2005

Page 2

brought forward

 

A joint meeting will be planned for the week of February 28, 2005, to discuss financing options for the Laurentian Energy Authority (LEA) Biomass Project.  David MacGillivray, Principal and Owner of Springsted, Inc., will be presenting the financial information to the Hibbing Public Utilities Commission, Virginia Public Utilities Commission, and Virginia City Council.  The meeting agenda will be recommendation by Springsted Inc. of an underwriter or bank detailing interest rate, fees, and financial strength of the lending institution.  The outcome for this meeting will be the selection of a financing authority for the Laurentian Energy Authority (LEA) Biomass Project. 

 

The Commission reviewed a letter sent to them dated February 01, 2005, from the Virginia Public Utilities Management Association.  The Commission scheduled a Finance Committee meeting of the whole for Monday, March 14, 2005, at 3:30 p.m. to discuss contract strategy.

 

On February 01, 2005, a meeting of the Commission’s Personnel Committee of the Whole was held to discuss two Step III grievances dealing with discipline.  By consensus, they agreed to recommend denying both grievances at Step III.  Moved by Bloomquist and supported by Raukar to deny Grievance #041116 at Step III.  Motion carried.  Moved by Bloomquist and supported by Raukar to deny Grievance #040819 at Step III.  Motion carried. 

 

Management presented and reviewed the Water Freeze Prevention/Water By-Pass report for December 2004 through January 2005.  Total water gallons for this program are 126,000 for a total not billed in the amount of $332.64.  Commissioner Sipola asked Management to provide the total water gallons not billed on the old water by-pass policy.

 

Mr. Leoni reported the No. 1 turbine overhaul project is scheduled to begin next week.  It is Management’s hope that No. 1 turbine will be available to operate with No. 7 boiler sometime in May 2005 through October 2005 so that the Utility can realize a reduction of coal usage for cost savings.

 

At the next regular meeting of the Public Utilities Commission, Management will present a recommendation for the Commission to consider awarding a contract for the Automated Meter Reading Devices.  It was the consensus of the Commission to hold a regular meeting 30 minutes before the joint meeting (for financing options on the Laurentian Energy Authority (LEA) Biomass Project) to award the AMR contract.

 

Commissioner Sipola mentioned because of the upcoming annual audit and the Commission changing the regularly scheduled meetings in February, Management has been unable to prepare an explanation as to how the Virginia Credit Bureau may be used.  Mr. Leoni commented Management will provide the information at the next regular Commission meeting. 

 

There being no further business to come before this meeting, it was moved by Bloomquist and supported by Park to declare this meeting is adjourned.  Motion carried.

 

Adjournment at 5:15 p.m.

 

ATTEST:                                                                                              APPROVED:

 

 

___________________________                                                                    ______________________________

Jerry Marks, Secretary                                                                          Dr. Don Sipola, President