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 28, 2008, AT 4:30 P.M.
Commission President Bloomquist called the meeting to order at 4:30 p.m.
Present: Commissioners Bloomquist, Raukar, Petroskey, Lucarelli, and Sipola.
Absent: None
Also Present: Terry Leoni – General Manager; Bill Hafdahl – Director-Finance & Administration; Connie Larson -- Director-HR/Safety; Councilor Dennis Lindberg.
Customer Keith Hendrickson was scheduled to make an appearance but did not show up. The Commission reviewed correspondence regarding Mr. Hendrickson’s deposit issue. Mr. Hafdahl explained that Mr. Hendrickson was asked to make a deposit because he had received five door hanger charges in twelve months for late payment. Mr. Hendrickson appealed the deposit requirement. The Administrative Review Team proposed giving Mr. Hendrickson five months to pay his deposit. After much discussion, the Commission expressed dismay that Mr. Hendrickson had not shown up to present his case. Commissioner Lucarelli made a motion to support the Administrative Review Team’s recommendation. President Bloomquist stepped down to support the motion. Motion carried.
Moved by Petroskey and supported by Lucarelli that financial Resolution #5127 authorizing the payroll dated 4/24/08 in the amount of $101,430.85, checks #45491 through #45512, and direct deposits #11928 through #11982; and bills dated 4/14/08 through 4/28/08 in the amount of $1,216,720.21, checks #78902 through #78981, and wire and electronic transfers in the amount of $846,749.26 be adopted and the minutes of the regular meeting held on April 14, 2008 be approved as presented. Motion carried.
The LEA board agenda and minutes were presented. Mr. Leoni noted that the LEA Board would be meeting following the Commission meeting.
Minutes from the March Safety Committee meeting were presented with no discussion. Mr. Leoni invited the Commission to attend safety committee meetings.
Mr. Leoni stated that he contacted the Minnesota Pollution Control Agency Commissioner and asked him to reconsider his ruling on fines and penalties based on the fact that the issues are different at the Hibbing and Virginia sites. The Commissioner reviewed the information presented but upheld his ruling. Mr. Leoni stated that all issues had been corrected and the revised air permit would be submitted soon. Moved by Sipola and supported by Lucarelli to authorize signature on the MPCA Stipulation Agreement dated March 11, 2008. Motion carried. Mr. Leoni reminded the Commission that Foster Wheeler will be reimbursing Virginia Public Utilities for the fines.
Moved by Lucarelli and supported by Raukar to hold Commission meetings monthly on the 4th Monday of the month. The vote was 4 ayes (Bloomquist, Raukar, Lucarelli, and Petrosky) and 1 nay (Sipola). Motion carried. Moved by Raukar and supported by Lucarelli to authorize VPU staff to process accounts payable and payroll biweekly and submit a report at the monthly meeting for approval. Motion carried.
Mr. Hafdahl presented information on the prepaid gas contract. He and Mr. Leoni explained that the project was being postponed to reach a favorable spread in interest rates. He presented a letter to modify the contract and postpone to June 1, 2009. Mr. Leoni noted that Sacremento Utilities was now a part of the project and that there were many big players involved. Moved by Sipola and supported by Lucarelli to accept the contract change and authorize signature of the letter. Motion carried.
Carried Forward
City of Virginia
Public Utilities Commission Page 2
Minutes of April 28, 2008 Meeting
Brought Forward
Mr. Leoni informed the Commission that discussions with the Hospital about rates were progressing, albeit slowly. The Mayor had sent an email about 45 days ago asking the Hospital to participate in discussions. VPU received a reply last week. Mr. Leoni explained that the current proposal includes a percentage discount off published residential rates rather than set rates. The term of the agreement would be five years. The Hospital has asked for some changes so negotiations are continuing. Mr. Leoni felt certain that an agreement would be reached. He noted that the Hospital had been billed back to January at the new rates and they paid their bill. An adjustment may be forthcoming depending on the outcome of the negotiations.
Mr. Leoni presented the water break report. He said that work has been on par with prior years. He noted that frost had been found from 6” to 6.5’ down.
Mr. Leoni noted that the February financial reports were included in the Commissioner’s packets. Mr. Hafdahl noted that financials through April will be in next month’s packet. Commissioner Sipola questioned steam on the production report and Mr. Leoni stated that it was back to normal.
It was noted that there had been a power outage in some areas on Southside on Saturday due to a large squirrel. Power was restored within an hour.
Moved by Petroskey and supported by Lucarelli to adjourn the meeting. There being no further business to come before the Commission, Commission President Bloomquist declared the meeting adjourned at 5:26 p.m.
ATTEST: APPROVED:
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Matt Raukar, Secretary Quentin Bloomquist, President