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South Dakota Public Utilities Commission Meeting
Friday, September 6, 2002; 10:00A.M.
State Capitol Building, Public Utilities Commission Cactus Conference Room
Pierre, South Dakota
MINUTES OF THE AD HOC MEETING
Chairman Jim Burg called the meeting to order. Also present were Commissioner Bob Sahr; Executive Director Debra Elofson; Commission Counsel John J. Smith; Staff Attorney Kelly Frazier; Staff Analyst Keith Senger; Transportation/Warehouse Director Bob Knadle; Inspector Chris Downs; Administrative Assistant Marlette Fischbach; and Administrative Secretary Mary Giddings.
Joining the meeting by telephone were Commissioner Pam Nelson; Gene Larson, DeMar Farmers Elevator; and Roger Damgaard and Steve Jorgenson, Home Federal Bank.
1. IN THE MATTER OF DAMAR FARMERS ELEVATOR. (Division Director: Bob Knadle; Staff Attorney: Kelly Frazier)
Roger Damgaard and Steve Jorgenson, representing Home Federal Bank, explained that Home Federal Bank is in agreement with the working plan that the DaMar Farmers Elevator submitted for the continued operation of the elevator. Gene Larson, representing DaMar Farmers Elevator, noted that the elevator is prepared to move quickly to carry out the working plan as employees are back on board and arrangements have been made so they will be paid. Mr. Downs stated that redelivery will take the longest time to finish. Mr. Smith, Mr. Knadle, Mr. Downs and Mr. Frazier further explained how the plan would be implemented. Chairman Burg and Staff answered questions about deferred pricing.
Chairman Burg moved that the Commission take no action to take possession of, or petition for receivership of, the DaMar Farmers Elevator (DaMar) grain warehouse and grain dealer operations or revoke DaMar's grain warehouse or dealers licenses at the present time based upon our finding that the Agreement dated August 30, 2002, between Home Federal Bank and DaMar will afford DaMar sufficient short-term working capital to enable the elevator to make redelivery of grain held under outstanding warehouse receipts and scale tickets and to make payment for existing priced grain purchases. This decision to take no action is subject to the following conditions:
1. That DaMar send a notice to all patrons of the elevator with open storage and warehouse receipted grain requesting them to make immediate arrangements for redelivery of their grain and that such grain be redelivered upon request.
2. That the elevator maintain sufficient amounts of each type of grain in the elevator to make redelivery on all outstanding warehouse receipts and scale tickets plus a buffer of 10% of such estimated grain subject to redelivery to assure that there is sufficient inventory to complete such redelivery.
3. That the elevator provide the Commission a copy of all documents regarding grain transactions as listed in paragraph 6 of the Agreement with Home Federal Bank dated August 30, 2002.
4. That DaMar make no further purchases of grain.
5. That no holder of a warehouse receipt or scale ticket for grain stored in DaMar elevators or seller of grain to DaMar under a priced contract file a complaint with the Commission against DaMar for failure to make payment or redelivery.
6. That no other act of insolvency occur which would require the Commission to take possession or petition for receivership. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Mary R. Giddings