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, SEPTEMBER 26, 2005, AT 4:43 P.M.

 

Commissioner Sipola called the meeting to order at 4:43 p.m.

 

Present:    Commissioners Park, Raukar, and Sipola.      (Commissioner Raukar arrived at 4:48 p.m.)

Absent:    Commissioners Bloomquist and Marks.

 

Also Present:        Terry Leoni, General Manager; Sue Lalli, Public Relations Supervisor; Bill Hafdahl, Director – Finance & Administration; Jeff Marwick; Director - Power Plant; Doug Ganoe, Director – Operations;  City Councilors,  Rob Raplinger and Steve Peterson;  Customer, Darwin Alar

 

Due to a short delay in the arrival of Commissioner Raukar, the Commission reviewed the financial reports presented for the period ending August 2005.  The General Manager answered questions from Councilor Steve Peterson on the Combined Operating Statement – Comparison to LYTD presented.

 

Customer Darwin Alar addressed the Commission regarding the Department’s policy requiring a Department employee to obtain a reading of all customers’ meters at least one time every three months.  Mr. Alar had been at the January 10, 2005 meeting on this issue.  Mr. Alar feels this requirement is an invasion of customers’ privacy and is not clear as to what the Department accomplishes by obtaining readings every three months.  Mr. Alar feels that a Department employee taking one reading a year should be adequate.  In addition, Mr. Alar addressed the Commission regarding an appointment to have three-month readings taken and when no one from the Department arrived at the scheduled time he contacted the Department and found that an order had not been written for the work to be performed on the date set.  An apology was extended to Mr. Alar for the mix-up.  The General Manager also explained that Department Policies are put into place for the benefit of the Department’s entire customer base.  The Department works diligently to ensure that all customers receiving services provided by the Department are billed correctly.  Several Department policies have been established to ensure that all customers are billed correctly and that no intentional or unintentional diversion of any commodity exists.  This ensures customers’ costs are kept as low as possible, one of the primary goals of the Virginia Municipal Utilities Department. 

 

Moved by Park and supported by Raukar that financial Resolution No. 5064 authorizing the payroll dated September 15, 2005 in the amount of $92,082.87, checks #43768 through #43791 and direct deposits #8352 to #8402; and bills dated September 14, 2005 through September 26, 2005 in the amount of $1,398,701.45, checks #72266 through #72353 and bills dated August 10, 2005 through August 10, 2005 in the amount of $223,963.56, checks #71968 through #72038, and wire and electronic transfers in the amount of $1,663,823.84 be adopted and the minutes of the regular meeting held on September 12, 2005 be approved as presented.  Motion carried.   

 

The minutes of the Safety Committee Meeting held on August 18, 2005 were received and filed.

 

The General Manager reviewed items pertaining to LEA underway at this time.  The resolution to support LEA’s going out for bonding will be addressed by the City Council at their meeting to be held on September 27, 2005; funds received by LEA from the bonds sold will go to a trustee who will distribute all funds; the minutes from the September 20, 2005 LEA were presented for the Commissioners’ information; the LEA Debt Service Schedule presented was reviewed; the next LEA meeting will be held on October 18, 2005 at 5:30 p.m. at the Virginia Utilities’ office; and a ground breaking ceremony for both Virginia and Hibbing will be set at a later date.

 

After discussion it was moved by Raukar and supported by Park to approve the Department’s Travel Request / Expense Reimbursement Policy Personnel #300-9 as presented.  Motion carried.

 

Director of Finance, Bill Hafdahl, reviewed the list of items reimbursed from the department’s Petty Cash Fund during the period January 2005 through July 31, 2005.  At this time, Mr. Hafdahl is looking at a new method of handling customer refunds and not utilizing the Petty Cash Fund.  In addition, with the approval of the new Department Travel Request / Expense Reimbursement Policy, travel related reimbursements will no longer be handled through the Petty Cash Fund.  Mr. Hafdahl does not feel that a dollar limit needs to be set for Petty Cash Fund items at this time; the use of Petty Cash will be monitored and, should it be determined a dollar limit is needed, a recommendation will be brought to the Commission at such time action is needed.

 

Carried forward

 

Public Utilities Commission

Meeting Minutes

September 26, 2005

Page 2

 

Brought forward

 

 

 

Moved by Park and supported by Raukar that Management be authorized to extend the Minnesota Municipal Utility Association Gas Circuit Rider Services Agreement with the Department to provide compliance expertise in communicating with the Office of Pipeline Safety and compliance on recordkeeping for the period October 1, 2005 through September 30, 2006 at a cost of $5,300.  Motion carried.

 

The General Manager reported the Commission’s Finance Committee had met at 3:30 p.m. today and reviewed projects that could be handled from the Taconite Relief Funds received by the Department.  Several projects considered at this time: repairs to the steam system; Power Plant steam system reconfiguration; and the updating of Power Plant controls.  Actual use of the funds will be handled through the 2006 budget setting process.

 

Management reported that the Department would be owners of the property located at 629 Third Street South, Virginia as of Friday, September 30, 2005 at which time the building would be secured so that trespassers are not able to enter the property;  purchase of the property located at 619 3rd Street South is underway with the closing expected within the next few weeks; demolition of all buildings not needed at 619, 629, and 621 3rd Street South, as well as the old Franklin Creamery building used as a garage at this time, will be done this coming winter with the demolition done in phases. 

 

There being no further business to come before the Commission, moved by Park and supported by Raukar to adjourn the meeting.

 

President Sipola declared the meeting adjourned at 5:30 p.m.

 

 

ATTEST:                                                                                               APPROVED:

 

 

 

 

_________________________________________                                ______________________________________

Jackie Park, Vice President                                                 Dr. Don Sipola, President