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 TUESDAY, JUNE 25, 2007, AT 4:30 P.M.

 

Commission Vice President Park called the meeting to order at 4:30 p.m.

 

Present:                        Commissioners Petroskey, Park, and Raukar.

Absent:             Commissioner Sipola.

 

Also Present:    Terry Leoni- General Manager; Bill Hafdahl – Director-Finance & Administration; Sue Lalli -Public Relations / Customer Service Supervisor; Doug Ganoe – Director–Operations Production; City Councilors – Dennis Lindberg and Rob Raplinger; Customers Dorothy and Marshall Bergerson and Doreen Storm.

 

Customer Doreen Storm addressed the Commission regarding utility billings received for the property she owns at 202 5th Ave No.  A high steam bill received the first week of March 2007 has been disputed and discussed with Utility Management.  The property was purchased October 26, 2006 and the meters were estimated until an actual reading was obtained on February 8, 2007.  The usage history on record at the Utility varied due to estimations and vacancy by previous owners.  Ms. Storm had spoken to several Utility employees and was of the impression that an adjustment would be made to the amount of steam billed, lowering the disputed billing.  Bill Hafdahl reviewed the billings and reported the steam meter had been removed and had tested one-percent slow – indicating the meter was recording within the acceptable recording level.  A Customer Serviceman was sent and met with Mr. and Mrs. Storm to review the steam system.  Ms. Storm did understand that repairs would be needed to the home when it was purchased.  To date, Ms. Storm has not had a plumber go over the home’s utility systems to examine efficient operation.  Mr. Hafdahl reported that all meters at the home have been changed to the Automated Meter Reading system to allow meter readings each month without access to the property.  No action by the Commission at this time.

 

Dorothy and Marshall Bergerson addressed the Commission regarding an insurance claim made by them for damages to their home at 407 7th Avenue South.  On March 19, 2007 a steam leak on their steam service line had allowed steam to enter the walls of their home causing damage inside the home.  Allied Adjusters had handled the claim for the Utilities’ insurance carrier and on April 27, 2007 a letter was sent by Allied to Mr. Bergerson indicating the Department was unable to assume liability for the damages.  The claim was denied as the source of the steam leak was from the Customer’s service line.  The Utility had responded promptly when notified of the leak at which time the steam had been vented to the outside of the home.  The steam service line is the property of the owner and the Utility provides maintenance to the service line.  A copy of the letter from Allied Adjusters was reviewed along with the steam policy pertaining to ownership and maintenance of steam service lines.  After discussion, no change was made to the claim.  Mr. Bergerson noted the steam service line between their main house and the house located in the rear of their property, where the leak had occurred, had been vented several times over the years.  The General Manager would check into the history on this property and noted the steam service line between the front house and the back house is scheduled to be replaced or repaired this summer. 

 

General Manager Leoni reviewed a June 14, 2007 letter from Technical Loss Adjustment pertaining to the Utility’s claim for damages to the #1 turbine on September 15, 2006.  Mr. Leoni reported he would be continuing to work on obtaining a change to the determination made by Technical Loss Adjustment to this claim.

 

Moved by Raukar and supported by Petroskey that financial Resolution #5107 authorizing the payroll dated June 21, 2007 in the amount of $103,610.60, checks #44913 through #44944, and direct deposits #10757 through #10810; and bills dated June 11, 2007 through June 25, 2007 in the amount of $1,188,743.58, checks #76385 through #76483, and wire and electronic transfers in the amount of $310,315.72 and the minutes of the regular meeting held on June 11, 2007 be approved as presented.  Motion carried. 

 

The May 2007 Monthly Injury Summary Report was reviewed indicating two injuries reported resulting in no restrictions and no lost time.

 

carried forward

City of Virginia, Minnesota                                                                                                         page 2

Department of Public Utilities

Commission Meeting Minutes

June 25, 2007

brought forward

 

A bid tabulation on a new loader for the Power Plant was presented and reviewed.  Moved by Petroskey and supported by Raukar to purchase a new 2007 John Deere loader from Nortrax for a total cost of $84,133 minus the trade in value of the Utility’s old loader, plus tax for a net $73,626.65.  Motion carried.  It was noted the delivery time is 30 (thirty) days after receipt of the order with the total due after January 1, 2008.

 

The Commission, at their meeting on June 11, 2007, received Performance Reviews and a recommendation for merit pay increases and had deferred discussion to this meeting when Commissioner Raukar would be present.  It was noted that Commissioner Sipola is absent from this meeting but had expressed his concurrence to the recommendations regarding the Reviews.  After discussion it was moved by Raukar and supported by Petroskey to award the merit and performance base pay increases to Greg French and Don Rindfuss effective July 1, 2007.  Motion carried. 

 

Moved by Raukar and supported by Petroskey to accept the recommendation of Management and award the additional performance increases presented to become effective January 1, 2008.  Motion carried.

 

Mr. Leoni noted that Management Performance Reviews would be done again in November 2007 and the Commission would be notified if those Reviews change the information given to the Commissioners at this time. 

 

Mr. Leoni reviewed the Department’s use of steam tunnels to encase steam mains being used at several locations throughout the City at this time.  It is expected that use of the tunnels will decrease the amount of time to repair steam line issues.  A cost analysis will be done to evaluate the cost efficiency and the Commission will be kept up-to-date on the use of the tunnels.

 

Mr. Leoni reported that Inland Ispat had stopped pumping water into Sauntry Creek some time ago and has indicated they would like to open discussion on resuming the pumping of water into the Creek.  Heavy Spring rains have helped dramatically with the temperature and quality of the water in Silver Lake.  The Commission will be kept up-to-date as a plan is developed between the City, the Utility and Inland.

 

Commissioner Park requested information on the Department’s policy on personnel smoking in Department vehicles.  Mr. Leoni assured Commission Park there is a very specific personnel policy on smoking in Department vehicles.

 

Councilor Raplinger noted the City Council had asked to be provided with Laurentian Energy Authority meeting minutes and agendas.  Moved by Petroskey and supported by Raukar that LEA be requested to provide copies of LEA meeting agendas and minutes to the members of the Virginia City Council.  Motion carried.

 

There being no further business to come before the Commission, Commission Vice President Park declared the meeting adjourned at 5:37 p.m. 

 

ATTEST:                                                                      APPROVED:

 

 

 

 

_______________________                                      ___________________________

Matt Raukar, Secretary                                                 Jackie Park, Vice President