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 23, 2008, AT 4:00 P.M.
Commission President Bloomquist called the meeting to order at 4:30 p.m.
Present: Commissioners Bloomquist, Raukar, Petroskey, and Lucarelli.
Absent: Sipola.
Also Present: Terry Leoni – General Manager; Bill Hafdahl – Director-Finance & Administration; Sue Lalli – Public Relations / Customer Service Supervisor; Dennis Lindberg – Councilor.
A letter of thanks from customer Keith Hendrickson dated May 27, 2008 was received and filed.
The letter dated June 9, 2008 from Utility General Manager to City of Virginia on Midway water line extension to Gilbert was received and filed.
The letter dated May 1, 2008 from Utility General Manager to City of Virginia on electric rates was received and filed.
The letter dated June 3, 2008 from MPCA on ArcelorMittal Minorca Missabe Mt. water appropriate pumping plan was received and filed.
Moved by Raukar and supported by Lucarelli that financial Resolution #5129 authorizing the payroll dated June 5, 2008 in the amount of $110,258.53, checks #45560 through #45585, and direct deposits #12097 through #12154; and the payroll dated June 19, 2008 in the amount of $105,470.38, checks #45586 through #45613 and direct deposits #12155 through #12212; and bills dated May 28, 2008 through June 23, 2008 in the amount of $2,159,014.00, checks #79197 through #79382, and wire and electronic transfers in the amount of $313,348.88 be adopted; and the minutes of the regular meeting held on May 27, 2008 and the minutes of the special meeting held on June 9, 2008 be approved as presented; and Management be authorized to execute the liability insurance waiver with the League of Minnesota Insurance Trust as presented. Motion carried.
The May 2008 Monthly Injury Summary Report was reviewed.
The LEA Agenda for the June 23, 2008 regular meeting; Minutes of the May 27, 2008 LEA meeting;
Preliminary Draft of the LEA 2007 Audit Report; LMCIT Liability Coverage Waiver Form; Balance Sheet; Monthly Budget; Cash Flow Report; and the Year-to-date Budget were received and filed. Mr. Leoni reported the Virginia biomass boiler continues running well.
After discussion on the upcoming MMUA Annual Summer Meeting on August 18-20, 2008 in Alexandria, Mn., it was moved by Raukar and supported by Petroskey to approve attendance for any Commission members or management that would like to attend. Motion carried.
Mr. Leoni noted the FERC Electric Rate Schedule containing the Electric Service Agreement, Minnesota Power Regulations for Wholesale Electric Service, and Transmission Distribution Facility Charge between Allete, Inc., and the City of Virginia, Mn. are in the Commissioners’ packet for this meeting. The two big differences in this Agreement are: a formulary for adjustment to rates and a demand rate increase. Virginia’s demand cost per month has increased by $27,000. As a result, the Utility is looking at raising the electric demand rate to customers January 1, 2009 or sooner. President Bloomquist requested a meeting of the Finance Committee of the Public Utilities Commission of the City of Virginia, Minnesota, a meeting of the Committee of the Whole, be held in September of 2008 to review a raise in
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rates. It was noted that the Utilities’ July 2008 Customer Newsletter contains information on Minnesota Power’s raise in rates to Virginia so customers are aware a raise in rates may be coming. The Virginia Utilities has continued to work with ninteen other municipal utilities and all are ready to approve the contract as set forth at this meeting. Moved by Petroskey and supported by Lucarelli to approve the Electric Service Agreement as presented. Motion carried.
The VRMC Heating Service Agreement and Electric Service Agreements formulated to date were presented Mr. Leoni and Mr. Hafdahl will be meeting with Dan Rabideaux from the VRMC on Tuesday, June 24, 2008 to continue work on the five-year Agreements.
Copies of the five-year Electric and Steam Heating Contracts with Virginia School District #706 were presented. Mr. Leoni is waiting for the School Board to approve the Contracts and return them for Utility approval.
The Electrical Outages and Interruptions for 2007 and 2008 to date were presented and the causes for each outage reviewed.
It was noted that the contractor for the 6th Avenue Project had neglected to notify residents along 6th Avenue of a water outage before the outage occurred the end of last week.
Mr. Leoni reported of the $530,000 damage claim as a result of the fire in the Power Plant in July of 2006, all but the Utility’s deductible and $72,000 has been received to date. The # 1 turbine damaged in 2007 is not being repaired and the insurance carrier has rejected the claim at this time. Management is currently reviewing what course of action to take with regard to the damages incurred.
The application for a major permit amendment application for the Utilities’ running of the biomass boiler was filed well within the time allowed and a copy of the application is in the Commission packets for this meeting. The application includes the changes needed for the boiler permit to be set at the correct limits - allowing operation of the biomass boiler while remaining in compliance.
The May 2008 financials were received and filed.
Moved by Lucarelli and supported by Petroskey to adjourn the meeting. There being no further business to come before the Commission, Commission President Bloomquist declared the meeting adjourned at 5:22 p.m.
ATTEST: APPROVED:
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Matt Raukar, Secretary Quentin Bloomquist, President