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PUBLIC UTILITIES COMMISSION MEETING
May 21, 1997; 10:00 a.m.
Commission Office, Room CCR
Pierre, South Dakota
MINUTES OF THE AD HOC COMMISSION MEETING
Chairman Burg called the meeting to order at 10:00 a.m. Present were Commissioner Pam Nelson, Commissioner Laska Schoenfelder, Executive Director Bill Bullard, General Counsel Rolayne Ailts Wiest, Staff Attorneys Karen Cremer and Camron Hoseck, Legal Intern Tricia Zimmer, Transportation/Warehouse Division Director Ed Anderson, Utility Analyst Dave Jacobson and Administrative Secretary Shirleen Fugitt.
Joining the meeting by phone was Tom Alberts representing Utica Grain and Feed, Inc.
Mr. Hoseck noted that the recommendations of Staff have become part of the record as stipulated to in the last hearing in this matter.
Chairman Burg moved to reinstate the grain warehouse and grain dealer licenses of Utica Grain and Feed, Inc. with the following conditions as outlined in Staff's recommendations:
1. With the exceptions noted in #2, no additional purchases of grain will be permitted until existing delayed price contract and warehouse receipt grain is liquidated and a weigh up is performed of any remaining company owned grain to establish an accurate inventory figure.
2. The purchase of grain for feed purposes, if the grain will be processed and redelivered, will be allowed. Utica may conduct the purchase of "new" grain, subject to bank approval, if the grain will not enter the Utica facility. In these types of transactions the grain goes straight from the farm to a third facility that has contracted with Utica to purchase the grain.
3. Utica must initiate immediate steps to lower the warehouse receipt liability or obtain additional warehouse bond to comply with statutory requirements.
4. With the exception of short term financing to cover grain purchases and operating expenses, no additional debt shall be incurred.
5. To restore the operation to a positive net worth position the "loan from shareholder" of $101,575 must be reclassified as additional paid in capital.
6. For the remainder of the licensing year the following information must be forwarded to the Commission on a weekly basis unless notified otherwise by Commission staff:
a. Report of any "new" grain purchases to include the type of grain, date of purchase, reason for purchase (feed grain or brokered purchases), producer name and date of payment including the check number and amount.
b. Report of any purchases or redeliveries involving existing warehouse receipt, delayed price or grain bank grain including the producer name, warehouse receipt or contract number, date, price, date paid and check number issued to satisfy the obligation.
c. Report of accounts receivable activity including any collections made on existing accounts and new accounts created.
d. Report of all forward sales contract activity.
e. Report of current status on bank line of credit and any other funds provided by the bank to finance grain purchases.
7. Utica must take immediate steps to correct existing problems with the computerized accounting system and begin providing weekly profit and loss statements as soon as the system can generate accurate results.
Commissioner Schoenfelder recommended an additional condition that the statements made by CorTrust Bank to the Commission in its letter found at Exhibit 3, pages 6 to 7, be complied with.
Commissioner Nelson recommended an additional condition that Utica Grain and Feed supply to the Commission documentation that the proceeds from the FEMA loan are not restricted and can be used for payment on the outstanding checks.
Chairman Burg moved to amend his original motion to include these two additional conditions. Commissioner Schoenfelder seconded the amended motion and Commissioner Nelson concurred. Motion passed 3-0.
The meeting was adjourned.