A
REGULAR MEETING OF THE PUBLIC UTILITIES COMMISSION OF THE CITY OF
Commissioner Sipola called the meeting to order at
Present:
Absent Commissioners Raukar and Marks (out-of-town).
Also Present: Terry Leoni, General Manager;
Douglas Ganoe, Director-Operations; Jeff Marwick, Manager-Electric
Generation; Lorraine Ilminen, Supervisor-Administration; City Councilors Rob
Raplinger and Steve Peterson; Employee Jim Sereno.
Moved by Park and supported by Bloomquist that financial Resolution #5051 authorizing the first half of March 2005
payroll in the amount of $79,601.65, checks #43436 through #43458 and direct
deposits, and bills dated March 25, 2005, in the amount of $1,096,304.21 checks
#71135 through #71202, and the second half of March 2005 wire and electronic
transfers; and the minutes of the
regular meeting held on March 14, 2005, is approved as presented.
Voting Aye: Park,
Bloomquist, and Sipola
Voting Nay: None
Motion carried.
Mr.
Leoni reported last Friday, there was an editorial voicing concern about a
piece of legislation with language that would have
reportedly allowed the Laurentian Energy Authority, the joint biomass venture
of the Virginia and Hibbing Public Utilities, to be exempt from several state
laws dealing with public access. He
called the newspaper explaining that the bill had been pulled for now because
there was confusion over the wording.
Today the newspaper printed a retraction to the editorial printed last
Friday. On
Management
requested authorization to hire three student casuals for the 2005 summer
season for a budget amount of $12,909.39 at $7.50 per hour each. One student casual will be used in the power
plant, one student casual for the outside area to include lawn care, painting,
etc., and one student casual in the office building. Six student casuals were budgeted for 2005
totaling $25,682.04. The student casuals
accomplish projects that need to be done while allowing regular employees to
concentrate on more important and skilled tasks. Moved by Bloomquist and supported by Park to
authorize Management to hire three student casuals for the 2005 summer
season.
Voting Aye: Park,
Bloomquist, and Sipola
Voting Nay: None
Motion carried.
Management
solicited quotations to have asbestos containing material removed from the No.
5 and No. 6 boilers. The external
insulating asbestos was removed in 1998 because of its deteriorating condition
and it was a hazard to personnel. In
compliance with environmental regulations, the Utility is required to have all
asbestos containing material removed before demolition. The boilers will be demolished to create an
open area for the new biomass boiler.
Management received four quotations:
EBN Contractors quoted $156,000; ACCT quoted $112,620; Lakehead
Environmental Services quoted $234,000; and Northern Environmental Services
quoted $96,275. Management recommended
awarding the asbestos abatement contract for No. 5 and No. 6 boilers to
Northern Environmental Services at a cost of $96,275, including the cost of a
100% performance bond. Moved by
Bloomquist and supported by Park to award the asbestos abatement contract for
the No. 5 and No. 6 boilers to Northern Environmental Services, Inc., at a cost
of $96,275 to include the cost for a 100% performance bond.
Voting Aye: Park, Bloomquist, and Sipola
Voting Nay: None
Motion carried.
carried
forward
Public Utilities Commission
Meeting
Minutes
Page
2
brought forward
Management
solicited quotations to demolish No. 5 and No. 6 boilers and turbines No. 2,
No. 3, and No. 4 in order to create the open area for the biomass boiler. Along with the boilers, all the coal bunkers
(for Boilers 1 through 6) and coal handling system will be removed. Management received three quotations: Bear Demolition quoted $140,000, Boldt
Construction quoted $189,000, and EBN Contractors quoted $198,000. Management recommended awarding the
demolition contract to Bear Demolition at a cost of $140,000, including the
cost of a 100% performance bond. Moved
by Bloomquist and supported by Park to award the demolition contract to Bear
Demolition for the No. 5 and No. 6 boilers, coal bunkers (for boilers 1 through
6), coal handling system, and turbines No. 2, No. 3, and No. 4 at a cost of
$140,000 including the 100% performance bond cost.
Voting Aye: Park, Bloomquist, and Sipola
Voting Nay: None
Motion
carried.
Mr.
Leoni commended Utility personnel on doing an exceptional job keeping the
Virginia Public Utilities in compliance with environmental regulations over the
years. Their efforts have made the
process for the biomass project easier and less costly to the Utility.
The
Commission scheduled a Finance Committee-of-the-Whole meeting with Walker,
Giroux & Hahne for Monday, April 11, 2005, at 3:00 p.m. to review the 2004
annual audit.
The Commission and
Management reviewed the water freeze prevention/water by-pass report through
February 2005. Mr. Ganoe apprised the
Commission that
last April, the Utility experienced a water main break along Highway 53 and
Midway Drive. An eleven foot 3 inch
section froze and split the mainline.
For quality control, the Utility installed a by-pass device on the water
service for Hague Quality (a seasonal business) to prevent freezing the water
main in the winter. When the water
by-pass policy changed, the customer removed the by-pass (because they only
have a toilet) and Management found the Utility needs a by-pass in that area to
prevent the water main from freezing.
This added 1,750 additional units in February 2005 that were not
included in the total number of gallons not billed on the report.
Mr.
Marwick updated the Commission on the No. 1 Turbine overhaul project. No. 1 turbine’s exciter and generator rotor
were sent to Mielke Electric in Duluth for cleaning and testing. After some minor cleaning, the readings were
extraordinary. The remaining work is
being done in-house. It is their hope to
have No. 1 turbine on-line by
May 01, 2005.
Brief
discussion was held on a near miss incident with a crane while lowering the No.
1 turbine casing. Mr.
Marwick reported he had the crane tagged out until it was inspected. Northern States Crane & Hoist was contacted
and the crane passed inspection. They
will re-color code the chains.
Management updated the Commission on job posting position awards. Two Fuelhandler/Utilitymen will be
transferring to the Seasonal Serviceman Helper positions on the week of April
18 for the 2005 construction season.
Management is posting for two Seasonal Fuelhandler/Utilityman
positions. One seasonal employee will be
recalled to fill the Temporary Fuelhandler/Utilityman position.
There
being no further business to come before this meeting, it was moved by
Bloomquist and supported by Park this meeting is adjourned.
Voting Aye: Park, Bloomquist, and Sipola
Voting Nay: None
Motion carried.
Adjournment
at 5:16 p.m.
ATTEST: APPROVED:
___________________________ ______________________________
Quentin
Bloomquist, Acting Secretary Dr.
Don Sipola, President