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, DECEMBER 11, 2006 AT 4:30 P.M.
Commissioner Sipola called the meeting to order at 4:35 p.m
Present: Commissioners Sipola, Bloomquist, Raukar, Park, and Muskovitz.
Absent: None.
Also Present: Terry Leoni - General Manager; Bill Hafdahl - Director-Finance & Administration; Sue Lalli - Supervisor-Public Relations / Customer Service; Dennis Lindberg - City Councilor.
General Manager Leoni reviewed the letters received pertaining to Minnesota Power’s interest in pursuing strategic partnerships with LEA that serve to enhance the value of services to customers with regard to Biomass Energy Developments.
Moved by Park and supported by Muskovitz that financial Resolution No. 5094 authorizing the payroll dated December 7, 2006 in the amount of $102,766.91, checks #44575 through #44596, and direct deposits #10023 through #10075 and bills dated November 28, 2006 through December 11, 2006 in the amount of $522,771.90, checks #75066 through #75180, and wire and electronic transfers in the amount of $70,036.07 and the minutes of the regular meeting held on November 27, 2006 be approved as presented. Motion carried.
The November 2006 Monthly Injury Report was presented and reviewed.
General Manager Leoni reported the Hibbing Biomass boiler is scheduled to have its first fire on December 14 and Virginia will have its first fire on December 21 or 22, 2006. Representatives from Xcel Energy are on site in Virginia this week to review the metering. The Virginia boiler is expected to be totally enclosed by December 14, 2006 and generation should begin by December 31, 2006.
Mr. Leoni reviewed the Wholesale Power Agreement with Minnesota Power presented to the Commission for approval. The Agreement has been in the works since August 2006. Moved by Bloomquist and supported by Muskovitz to approve the Wholesale Power Agreement with Minnesota Power as presented and authorize the Commission President and Secretary to sign the final Agreement. Motion carried.
Mr. Leoni presented and reviewed the final 2007 Utility Budget. Moved by Bloomquist and supported by Park to approve the 2007 Utility Budget as presented. Motion carried.
Moved by Raukar and supported by Park that the Director of Operations Distribution – Gas and Electric be authorized to attend the National Electrical Safety Code Workshop on January 16-18, 2006. The workshop is sponsored by MMUA and will be held in St. Cloud, Minnesota with a total estimated cost of $590.48. Motion carried.
Moved by Bloomquist and supported by Muskovitz to authorize the Commission President and Secretary to sign the new five-year Agreement for Operation and Management of the Water Treatment Plant with Northeast Technical Services as presented. Motion carried.
Moved by Bloomquist and supported by Park to offer the position of Fireman Trainee/Helper to Josh Haavisto, contingent upon successfully completing a pre-employment physical and background check. Motion carried.
Carried forward
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Commission President Sipola reported a performance review for General Manager Terry Leoni was conducted on November 13, 2006 by the Committee of the Whole Personnel / Finance Committees and the following report was presented and to be included in the minutes of this meeting along with the contents of the December 11, 2006 letter to Mr. Leoni regarding his employment agreement dated April 26, 2004.
“A performance review questionnaire had previously been completed by each Commissioner, all supervisory managers under the General Manager, and Mr. Leoni himself. The questionnaire asked for performance evaluations in eight separate categories with five to seven specific performance tasks in each category. There were a total of 45 tasks reviewed. Categories and tasks were derived from the General Manager job description and information provided for this purpose by the Minnesota Municipal Utilities Association regarding General Manager reviews. Data was organized, tabulated and scored for committee analysis by Human Resource Supervisor, Connie Larson. The eight categories were:
1. Organizational development
2. Fiscal/Business Management
3. Program development
4. Relationship with Commission
5. Long Range Planning
6. Relationship with customers/public relations
7. Inter-agency relations
8. Professional/personal development
“Each task was scored from ‘1’ (occasionally does not meet standards, expectations, and requirements) to ‘5’ (typically performs at a higher level than required) with a ‘3’ meeting standards, expectations and requirements. The average performance score for all eight categories was 4.2. The range for each category was 4.1 to 4.5. Specific tasks that were ranked lowest by any of the three groups of evaluators (Commission, subordinate managers and self) were discussed specifically. In all cases, there were satisfactory explanations and/or delegation of the task (i.e. safety, health, and benefit organization and planning to the Human Resource Supervisor). Constructive feedback to and from the Commission and Mr. Leoni respectively was shared. The review process highlighted a few areas for attention during the next year, none of which were unknown to Mr. Leoni, and most of which already had corrective plans in place. Overall the Commission felt Terry Leoni is providing General Manager services for the Virginia Public Utilities at ‘well above expectations, standards and requirements’.”
Moved by Park and supported by Bloomquist that the General Manager, Terry Leoni, be given a pay increase of $5,800 a year, to $85,800 a year, to begin January 1, 2007; the retirement health package will change from the prior premium split arrangement in the April 26, 20004 letter to “at the same rate as active employees; vacation allotment will remain at four (4) weeks per year; all other terms and conditions of employment will follow the Department’s Personnel Policies for Non-represented Employees. A letter of understanding to be put with the current employee letter of employment with Mr. Leoni. Motion carried.
Carried forward
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After discussion of staff reviews done by the General Manager, it was moved by Raukar and supported by Bloomquist that the Director of Finance and Administration, William Hafdahl, be given a pay increase of $2,600 year to an annual salary of $59,800. Motion carried.
Mr. Hafdahl noted the list of investments included in the Commission packet reflects the Plant fire damage claim settlement that has not been received.
Mr. Leoni noted Mayor Gentilini has conveyed the City of Virginia is currently working with Dennis Yourczek on the opening of the old radio station building located on the Southside of Virginia. The cost for the Department to reestablish electrical services to the site would come to approximately $824.25 and would not include free electrical service for operation. Moved by Raukar and supported by Park that management be authorized to provide electrical installation at an estimated cost of $824.25 after an electrical affidavit is filed and the FCC license is obtained by the City for this City-sponsored project.
There being no further business to come before the Commission, Commissioner Sipola declared the meeting adjourned at 5:12 p.m.
ATTEST: APPROVED:
_______________________________ _______________________________
Matt Raukar, Secretary Dr. Don Sipola, President