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, AUGUST 22, 2005, AT 4:30 P.M.

 

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

 

Present:  Commissioners Raukar, Bloomquist, and Sipola.           

Absent:   Commissioners Marks and Park.

 

Also Present:    Terry Leoni, General Manager; Sue Lalli, Public Relations Supervisor; Bill Hafdahl, Director – Finance & Administration; Connie Larson, Director of Human Resources / Safety; Jeff Marwick, Director - Power Plant; Doug Ganoe – Director of Operations; City Councilors,  Rob Raplinger and Steve Peterson.

 

Commissioner Sipola requested two mileage reimbursements, Invoice dated August 5, 2005 in the amount of $267.30 and Invoice dated August 15, 2005 in the amount of $116.64 be considered separately and not part of the consent agenda.  These two items would be covered under new business at this meeting.

 

Moved by Raukar and supported by Bloomquist that financial Resolution No. 5061 authorizing the payroll dated August 4, 2005 in the amount of $88,174.46, checks #43687 through #43714, and the payroll dated August 19, 2005 in the amount of $87,474.25, checks #43715 through #43741 and direct deposits; and bills dated August 4, 2005 through August 23, 2005 in the amount of $322,310.19, checks #72039 through #72138, and wire and electronic transfers in the amount of $242,374.50 be adopted and the minutes of the regular meeting held on July 28, 2005 be approved as presented.  Motion carried.

 

The General Manager reviewed communications pertaining to the Biomass Project and steam system funding received:  the official notice of approval received from the Minnesota State Public Utilities Commission on the LEA / Xcel Purchase Power Agreement; the IRRRB Resolution No FY06-002 covering  grants to the Hibbing and Virginia Utilities for the Biomass Project and to the Virginia Utilities for improvements and repairs to the City’s steam heating system; and two summary memorandums covering the activities and legislative funding for the past twenty-four (24) months.  Commissioner Sipola and Mr. Leoni will be presenting an update on the Biomass Project to the Virginia City Council as soon as they can be placed on the Council Agenda.  The Council will be requested at that time to authorize the Virginia Public Utilities Commission to bond for the Biomass Project.

 

After considerable discussion on the Biomass Project and the bonding requirements for long-term debt, the Commission went on record approving the financing of the joint Biomass Project between the Hibbing Public Utilities and the Virginia Public Utilities in an amount yet to be determined but approaching $60,000,000 in revenue bonds subordinated by the revenues of the project.  Moved by Bloomquist and supported by Raukar that the Commission authorize management to proceed with the bonding required for the Biomass Project.  Motion carried.

 

The Commission also went on record requesting that at the appropriate time the Virginia City Council meet and, upon receiving information from Springsted, Inc., financial advisor to the Virginia Department of Public Utilities and the City of Virginia, approve the sale of the revenue bonds.  It was suggested that Mr. Leoni and Commission President Don Sipola attend the next regular meeting of the Virginia City Council scheduled for Tuesday, August 23, 2005 and review the status of the Biomass Project and the need for the Council to approve the sale of the bonds.  Moved by Bloomquist and supported by Raukar that the Virginia City Council be requested to approve the Virginia Utilities request to obtain bonding for the Biomass Project. Motion carried.

 

Mr. Leoni reviewed the need for the Commission’s Finance Committee to meet as soon as possible to address the allocation of the funds received from the IRRRB.  A meeting of the Commission’s Finance Committee was set for 3:00 p.m. on Monday, September 26, 2005, immediately preceding the regular Commission meeting. 

 

Mr. Leoni reported two meetings have been held with the owner of 619 3rd Street South, Virginia, Mn., and discussions are still being held regarding the purchase of this property.  The assessed valuation of the property is $36,000.

 

 

                                                                                                carried forward

Public Utilities Commission

Meeting Minutes

August 22, 2005

Page 2

 

                                                                                                brought forward

 

 

Management presented a revised customer Deposit Policy for the first reading.  The revisions to the policy are to align the Policy to the State Department of Commerce’s requirements for the deposit rate and how interest is applied to customers’ accounts.  The revision changes the month when deposits are applied to customers’ accounts from April to December of each year.  This Policy will be presented for the second reading and final approval at the next regular Commission meeting.

 

Management presented a revised Travel Request / Expense Reimbursement, Utilities’ Policy and Procedure, Personnel Number 300-9 for the first reading.  The revisions presented Commission requested updates to the Policy in effect at this time.  Additional revisions will be made and presented for the second reading and final approval at the next regular Commission meeting.

 

Commissioner Raukar requested discussion on the two mileage reimbursements, Invoice dated August 5, 2005 in the amount of $267.30 and Invoice dated August 15, 2005 in the amount of $116.64 be postponed until the next regular Commission meeting when all Commissioners should be present.

 

Management presented the Sebasta Blomberg Boiler MACT Analysis completed August 8, 2005.  The report conveyed that the Utilities begin collecting a database of fuel samples for dry basis Btu, mercury and chlorine contents, with the recommendation that at least 20 separate samples be taken to fully assess the variability of the fuel parameters.  The report also reflected that indications from the limited data set are that Boilers 7 and 9 could comply with Boiler MACT without installation of additional control equipment; however, it is important that efforts continue to collect sufficient information to make a fully informed decision.

 

Other issues discussed:  Management will compile information and put together improved guidelines for checks processed for items such as petty cash and customer deposit refunds – a list will be formulated for the Commission and conveyed at the next regular meeting; purchase of the Vergoth property is in the final stages and the building is expected to be vacant by mid September 2005; financial statements were reviewed and format changes implemented by the Director of Finance will prove helpful.

 

Management reported a letter had been sent to the Virginia Credit Bureau regarding the collection information the Utilities requires from businesses providing collection services.  Two Minnesota Department of Public Safety Inspection Results were received.  The first regarding the Operator Qualification Program has already been responded to by the Utilities indicating the Inspection Requirements have been completed.  The second – regarding the inspection conducted of the Virginia Department of Public Utilities gas distribution system - is still being acted on in order to complete the requirements addressed in the inspection.

 

There being no further business to come before this meeting, it was moved by Raukar and supported by Bloomquist that this meeting be adjourned.  Motion carried.  Commissioner Sipola declared adjournment at 5:40 p.m.

 

ATTEST:                                                                                               APPROVED:

 

 

_________________________________________                                ______________________________________

Matt Raukar, Commissioner                                                               Dr. Don Sipola, President