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 14, 2009, AT 4:30 P.M.
Commission President Bloomquist called the meeting to order at 4:35 p.m.
Present: Commissioners Bloomquist, Lucarelli, Petroskey, and Marks.
Absent: Commissioner Raukar.
Also Present: Terry Leoni – General Manager; Bill Hafdahl – Director–Finance/Administration; Sue Lalli – Public Relations / Customer Service Supervisor; Dennis Lindberg and Charlie Baribeau – City Councilors; one representative of Virginia City Cable Commission for the purpose of taping the meeting
A letter was received from the Virginia City Clerk notifying the Commission that the terms of Commissioners Petroskey and Raukar will expire on February 1, 2010. Commissioner Petroskey did indicate he would be applying for reappointment. Commission Raukar has served the three consecutive terms allowed.
Mr. Leoni reviewed the letter contained in the Commissioners’ packets regarding the Virginia Biomass Boiler and the MPCA 2009 Stipulation Agreement along with the letter from the Utilities to the MPCA on the Stipulation Agreement. The Utility has been working with the MPCA since the violations were first noted to LEA working to have the permit for operation of the wood boiler modified. As yet the MPCA has not made the needed modifications to the permit requirements. Virginia will experience a fine of $60,000 which will be reimbursed by the Laurentian Energy Authority.
Moved by Lucarelli and supported by Petroskey that financial Resolution #5147 authorizing the payroll dated December 3, 2009 in the amount of $118,824.75, checks #46515 through #46537, and direct deposits #14268 through #14322 and the bills dated November 23, 2009 through December 14, 2009 in the amount of $923,915.48, checks #82441 through #82531, and wire and electronic transfers in the amount of $1,567,922.02; and the minutes of the November 23, 2009 meeting be approved as presented. Motion carried.
Mr. Leoni reported LEA has generated electricity above the rate projected for 2009 and has met the three (3)-year rolling average. The agenda for the LEA meeting to be held in Virginia at 5:30 p.m. this evening along with minutes and a cash flow report are in the Commissioners’ packets.
The November 2009 Monthly Injury Summary Report was reviewed. The report showed one injury but Mr. Leoni explained that there was no lost time for this injury.
After discussion it was moved by Lucarelli and supported by Petroskey to approve the Utilities Budget for 2010 as presented. Motion carried. The budget was reviewed in detail at the Commission’s Finance Committee, a meeting of the Committee of the Whole, held at 3:30 p.m. this afternoon.
Mr. Leoni noted Minnesota Power has projected an increase of 15% to their 2010 Wholesale Power Agreement with the Utility along with an increase in their demand rates to the Utility. This will affect the Utility’s costs to provide services to customers. This cost increase from Minnesota Power, along with increased costs due to environmental and renewable energy mandates required in 2010, will be covered by the increase in Utility rates to customers reflected in the 2010 budget.
Carried forward
City of Virginia
Department of Public Utilities
Commission Meeting Minutes
December 14, 2009 Meeting Page 2
Brought forward
Management requested cost proposals to provide treatment chemicals for the clarification and corrosion control of potable water for the City of Virginia to lessen the increasing costs for these chemicals over the past several years. After a review of the proposals, Management requests the Commission award a three-year contract to provide treatment chemicals for the clarification and corrosion control of potable water for the City to Aqua-Pure, Inc., for the period December 1, 2009 through November 30, 2012 at a guaranteed cost of 0.00006057 per gallon of raw water pumped. The contract will include annual training on water treatment chemicals for Plant Operations and Maintenance personnel. This new contract will result in an immediate cost savings and an approximate savings of $3,400 per year over current costs. Moved by Marks and supported by Petroskey to award a three-year contract with Aqua-Pure, Inc., as presented. Motion carried.
Mr. Leoni reported that AFSCME Contract Negotiations are still at a standstill. The Mediator did contact the Utility and knows the Utility is waiting for AFSCME to contact Management to resume negotiations. Virginia Public Utilities Management will be sending a letter to AFSCME’s exclusive representative and local President.
Mr. Leoni noted the preliminary 2009 year-end financial reports will be forwarded to the Commissioners as soon as they are available.
There being no further business to come before the Commission, Commission President Bloomquist declared the meeting adjourned at 4:55 p.m.
ATTEST: APPROVED:
____________________________ ____________________________
Jim Petroskey, Vice President Quentin Bloomquist, President