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, June 13, 2005, AT 4:30 P.M.

 

Commissioner Sipola called the meeting to order at 4:30 p.m.

 

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

Absent:   None.

 

Also Present:    Terry Leoni, General Manager; Sue Lalli, Supervisor-Public Relations; Douglas Ganoe, Director-Operations; Dori Bergman – Supervisor-Accounting; Lynn Rosebush, Director – Finance & Administration; Jeff Marwick, Director – Power Plant; City Councilor Rob Raplinger.

 

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

LIST OF INVESTMENTS

 

Management presented a letter received from the owner of 629 3rd Street South, Virginia, containing information pertaining to the possible sale of the property.  Management will review the information, evaluate whether the Utilities would like to look at purchasing, and report back to the Commission at a future meeting.

 

Moved by Marks and supported by Raukar that financial Resolution #5056 authorizing the second half of May 2005 payroll in the amount of $86,101.60, checks #43551 through #43580, direct deposits, wire transfers, electronic transfers for the first half of June 2005, and bills dated June 10, 2005 in the amount of $855,984.74, checks #71551 through #71689, be adopted and the minutes of the regular meeting held on May 23, 2005 be approved as presented.  Motion carried.              

 

Management presented the May 2005 Monthly Injury Summary Report for Commission review.  There were no lost time accidents in the month of May 2005.

 

Mr. Leoni reported on the Virginia/Hibbing Joint Biomass Project permitting process, the State of Minnesota Public Utilities Commission comment period that is under way,  and the results of the Minnesota Pollution Control Agency (MPCA) public informational meetings held in Hibbing and Virginia   It was reported that the Virginia Mayor and City Council have signed copies of the State of Minnesota Office of the Commissioner of the Iron Range Resources and Rehabilitation, Virginia Public Utilities Commission Biomass Project Loan agreement.  To satisfy the IRRRB that the proceeds from the loan will only be used for the Virginia/Hibbing Joint Biomass Project it was moved by Commissioner Park and supported by Commissioner Marks to adopt Resolution #5057 of the City of Virginia Department of Public Utilities authorizing the execution, delivery, and performance of the Virginia Public Utilities Commission Biomass Project Loan Agreement.

 

WHEREAS, The Virginia Public Utilities has created and entered into a Joint Venture, The Laurentian Energy Authority, with the Hibbing Public Utilities, and;

 

WHEREAS, The purpose of the Laurentian Energy Authority is to undertake a biomass project development to insure execution of a Power Purchase Agreement with Northern States Power Company, and;

 

WHEREAS, The Virginia Public Utilities Commission certifies the absence of threatening or pending litigation related to the Virginia Project, and;

 

WHEREAS, The Virginia Public Utilities has the authority to resolve the following:

 

 

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NOW, BE IT HEREBY RESOLVED THAT, the Virginia Public Utilities Commission authorizes the execution, delivery and performance of Virginia Public Utilities Commission Biomass Project Loan Agreement (Document RQ# B43-1810) with the Iron Range Resources, and the associated NOTE (Exhibit A), and;

 

BE IT FURTHER RESOLVED THAT, the Virginia Public Utilities will designate and commit the proceeds from such loan to the furthering and completion of the Laurentian Energy Authority Biomass Project, and;

 

BE IT FURTHER RESOLVED THAT, the Virginia Public Utility commit, to the maximum extent permitted by its Authorizing Legislation, its Revenue from the Project Facilities to payment of the sums due under the Note and said Loan Agreement, and;

 

BE IT FURTHER RESOLVED THAT, the Virginia Public Utilities Commission has designated and committed an additional $4,000,000 of its own funds, as equity, to be and remain available to pay Laurentian Energy Authority Biomass Project costs (Virginia Project Costs), and to match on a dollar for dollar basis any and all amounts of Iron Range Resource Loan Proceeds that are Advanced by the State, and;

 

BE IT FURTHER RESOLVED THAT, the Virginia Public Utilities Commission plans to effect a long-term schedule of rates and charges for its services over the next twenty (20) fiscal years that is calculated reasonably to provide sufficient funds with which to pay its Obligations under the IRR Loan Agreement and Note as they accrue and also fully fund the obligations imposed by its Authorizing Legislation to maintain a replacement fund, and;

 

BE IT FINALLY RESOLVED THAT, the Virginia Public Utilities Commission hereby requests that the Mayor and City Clerk/Finance Director to execute as signatory the Virginia Public Utilities Commission Biomass Project Loan Agreement (Document RQ# B43-1810) with the Iron Range Resources, and the associated NOTE (Exhibit A) and any other documents or certificates to be delivered pursuant to the Loan Agreement.   Motion carried.

 

Moved by Marks and supported by Raukar that the General Manager, one member of Management, and any Commissioners be authorized to attend the MMUA Summer Meeting to be held August 8-10, 2005 at Breezy Point Resort, Breezy Point, Minnesota.  Motion carried.

 

Management presented a Memorandum of Understanding – Hours of Work for the office AFSCME staff that was received stating: “As per the request of the office staff at the VPUC, the Union has agreed to a modification of Article VII – Hours of Work, Section D that would provide for Item G being added to the options for hours of work for the work group.  Item G would be:  8:00 a.m. to 4:30 p.m. with a one (1) hour lunch and no a.m. or p.m. breaks.  As per your request Item H would be added to the list as follows:  Item H – 7:30 a.m. to 4:30 p.m. with a one (1) hour lunch and the normal a.m. and p.m. breaks.  The parties to the Agreement will acknowledge this correspondence as a Memorandum of Understanding to the AFSCME Local 729 labor agreement by their respective signatures affixed below, and these additions shall be included in the next printing of the labor agreement.”  It was further noted that the business office doors will be open until 5 p.m. and a member of the management staff will be on hand to take cash payments and handle phone calls that come in during the 4:30 to 5 p.m. time period.  Customers will also have the ability to set up Payment Agreements during this time period when an appointment has been set up in advance.  It is expected that this change will take place by July 5, 2005.  Moved by Raukar and supported by Marks to accept the Memorandum of Understanding as noted here.  Motion carried.

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Mr. Leoni presented a letter of resignation received from Lynn Rosebush, Director of Finance and Administration.  The Commissioners thanked Ms. Rosebush for her excellent performance while employed at the Utility and wished her their best. 

 

Mr. Leoni presented a letter of resignation from Tracy Peterson, EDP Operator in the office group effective July 5, 2005. 

 

Management presented a bid tabulation for the only bid received for the 6th Avenue Steam Project to install a new steam main from Manhole #392 on the west side of 6th Ave South to Manhole #393 on the east side of 6th Avenue South.  Work is to be completed between June 20 to August 25, 2005.  Moved by Marks and supported by Raukar that the bid be awarded to Ulland Contracting at a cost of $103,385.  Motion carried. 

 

Management requested authorization to extend the current contract with Wireless Alliance until January 21, 2010 and to allow the installation of six (6) more antennas at a rental of $800 a month.  The terms of the contract will follow the original agreement as stated in the First Amendment to the Tower Lease Agreement.  Moved by Park and supported by Raukar that management be authorized to extend the current contract with Wireless Alliance until January 21, 2010 and allow the installation of six (6) more antennas at the rental rate of $800 a month.  The terms of the contract will follow the original agreement as stated in the First Amendment to the Tower Lease Agreement.    Motion carried.

 

After discussion it was moved by Marks and supported by Park that management be authorized to make an adjustment to utility account No. 307.5155.0 for steam service to 218 Chestnut Street in the amount of $3,815 based on historical consumptions for the service address.  This adjustment is a result of reviewing the usage for the period April 2004 through April 2005 as directed by the Commission at their regular meeting held on June 14, 2004.  Motion carried.

 

After discussion it was moved by Raukar and supported by Marks that management be authorized to solicit bids at the Utility and City for the removal of personal property located in the house and garage recently purchased by the Utilities at 621 3rd Street South and that the successful bidder remove such personal property within eight (8) weeks time, prior to pending demolition to take place in the fall of 2005.  Motion carried.

 

The Water Freeze Prevention / Water By-Pass Report for December 2004 through April 2005 was presented and reviewed.  The commission noted the recording of the information on the report has been extremely helpful in monitoring unaccounted for losses of water.

 

Management reported the security cameras have been installed by Jayen and have been recording since June 3, 2005.

 

Management reported that the Director of Operations would be attending a meeting of the Mt. Iron Public Utilities Commission later this month. 

 

 

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Management noted the Virginia Community Foundation Newsletter gave thanks to the Virginia Public Utilities for their donation of energy efficient light bulbs as part of the Virginia Turn on Your Light Campaign held in 2004.  Light bulbs were paid for by the Utility from Conservation Improvement Program (CIP) funds. 

 

There being no further business to come before the public meeting, Commissioner Sipola declared the meeting held over at 5:35 p.m. to go into closed session to discuss employee contract strategy. 

 

Moved by Marks and supported by Raukar to close the meeting to discuss personnel issues.  Motion carried.

 

At 6:05 Commissioner Sipola declared the public meeting back in session.

 

Moved by Marks and supported by Raukar to execute and sign the employment contact for the Human Resources / Safety Director as presented.  Motion carried. 

 

Moved by Marks and supported by Raukar to authorize Management to advertise for the positions of Finance Director, EDP Operator (Billing Clerk), and Power Plant Operator.  Motion carried.

 

Meeting adjourned at 6:09 p.m.

 

 

ATTEST:                                                                                              APPROVED:

 

 

 

___________________________                                                                    ______________________________

Jerry Marks, Secretary                                                                          Dr. Don Sipola, President