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, APRIL 9, 2007, AT 4:30 P.M.
Commission President Sipola called the meeting to order at 4:30 p.m.
Present: Commissioners Petroskey, Muskovitz, Park, Raukar and Sipola.
Absent: None
Also Present: Terry Leoni, General Manager; Bill Hafdahl – Director-Finance & Administration; Sue Lalli, Public / Customer Relations Supervisor; Dennis Lindberg and Carl Baranzelli - City Councilors – Utility Commission Liaisons; Rod and Kim Huewe - Customers.
Kim Huewe addressed the Commission regarding a claim made to the Utility’s insurance company, LMCIT, for damages incurred to her home on March 6, 2007 as a result of a water main break. The claim was turned over to the Utility’s insurance carrier and the insurance adjuster, Steve Michalski, is working on the claim and has been in contact with Mr. and Ms. Huewe. Ms. Huewe conveyed that Steve Michalski stated his recommendation would be that the claim be denied by the Utility’s insurance carrier and she would like to have the claim reevaluated. After discussion, Mr. and Mrs. Huewe were advised to continue working with the insurance adjuster on the claim. Pictures and information Ms. Huewe presented to the Commission would be forwarded to Mr. Michalski. Mr. Leoni noted that Steve Michalski would be at the Utility on April 10, 2007 and would be requested to send a reply to Mr. and Ms. Huewe. As Mr. and Mrs. Huewe had also discussed the matter with the Virginia City Attorney and City Operations Director, Mr. Leoni would have Mr. Michalski contact the City Attorney for any information they might have regarding the claim. If there is anything new to report Mr. Leoni would contact Ms. Huewe on April 10, 2007.
Moved by Park and supported by Raukar that financial Resolution #5101 authorizing the payroll dated March 29, 2007 in the amount of $93,056.15, checks #44773 through #44793, and direct deposits #10440 through #10491; and bills dated March 27, 2007 through April 9, 2007 in the amount of $838,221.98, checks #75857 through #75967, and wire and electronic transfers in the amount of $68,610.31 and the minutes of the regular meeting held on March 26, 2007 be approved as presented. Motion carried.
Mr. Leoni reviewed the March 2007 Monthly Injury Summary Report. The incident on March 29, 2007 as a result of ash removal from the Biomass boiler was reviewed and the Fireman and Fireman Trainee / Helper injuries were discussed. Both employees are at work. Foster Wheeler flew to the Utility immediately after the incident to determine corrective measures. Procedures and protective clothing for handling removal of fly ash in the future have been further refined.
Other issues with the Biomass boiler were being addressed – a vibration of the I. D. fan has been corrected and a check out of the environmental side of the boiler is under way. An issue with incomplete combustion is also being reviewed. The Utility has until June 2007 to ensure the Biomass boiler is in MPCA permit compliance.
The Director of Finance, Bill Hafdahl, gave an update on the MMUA project to establish a Minnesota Municipal Gas Agency for purchase of natural gas. Municipal gas agencies have shown their value in other areas of the country and provide greater access to resources and expertise. The core group of utilities will consist of Austin, Circle Pines, Hibbing, Hutchinson, New Ulm, Owatonna, and Virginia. Mr. Hafdahl will keep the Commission informed as the project progresses.
Mr. Leoni reviewed his April 3, 2007 letter regarding the #1 turbine claim. Once a response is received, further action can be determined.
Carried forward
City of Virginia page 2
Department of Public Utilities
Meeting Minutes
April 9, 2007
Brought forward
Mr. Leoni reported he will be on vacation and not at the April 23, 2007 meeting. After a brief discussion it was determined the April 23, 2007 Commission meeting would be held as scheduled.
Mr. Hafdahl reported the draft financials for 2006 for the Laurentian Energy Authority will be done by April 17, 2007 and the audited financials for the Utilities will be ready for the first meeting in May 2007.
Mr. Leoni noted development of the land north of the Virginia Golf Course is back in play for the City of Virginia. At this time, the Utility has not budgeted funds in 2007 for any utility infrastructure work on this project.
Mr. Leoni reviewed the April 6, 2007 letter from Minnesota Power on the potential partnership of the Utilities with Minnesota Power on Biomass Energy Development.
Mr. Leoni reported The Virginia Public Utilities and the Hibbing Public Utilities (LEA) have been notified of their nomination to participate in the 15th Annual Joel Labovitz Entrepreneurial Success Awards program and have been nominated for the Micro-Entrepreneur Award. The UMD Center for Economic Development hosts this awards program to honor individuals who enhance our region through their entrepreneurial endeavors. Nominees will be honored and award recipients announced at the Annual Joel Labovitz Entrepreneurial Success Awards luncheon at the DECC on Wednesday, April 18, 2007.
Mr. Leoni also reported that the Minnesota Environmental Initiative has announced that the LEA Biomass Project is a finalist for the 2007 Environmental Initiative Awards in one of five categories: Air Quality and Climate Protection, Environmental Education, Green Building and Development, Green Business and Environmental Management, and Natural Resource Protection. The 2007 Environmental Initiative Awards event will be held on May 17, 2007 at which time the winners in each of the five categories will be announced.
There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 5:40 p.m.
ATTEST: APPROVED:
_______________________ ___________________________
Jackie Park, Vice President Dr. Don Sipola, President