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, JANUARY 9, 2006, AT 4:30 P.M.

Commissioner Sipola called the meeting to order at 4:30 p.m.

Present: Commissioners Bloomquist, Muskovitz, Park, Raukar, and Sipola.

Absent: None.

Also Present: Terry Leoni, General Manager; Bill Hafdahl – Director-Finance & Administration; Sue Lalli, Public Relations Supervisor; Doug Ganoe – Director of Operations; City Councilor Steve Peterson; and John Hendrickson, The Mesabi Daily News.

Commission President Don Sipola welcomed James Muskovitz to the Commission. Mr. Muskovitz will serve on the Commission until February 2008.

Moved by Raukar and supported by Park that financial Resolution No. 5070 authorizing the payroll dated December 22, 2005 in the amount of $86,008.26, checks #43933 through #43955, and direct deposits #8711 through #8759 and the payroll dated January 5, 2006 in the amount of $88,526.32, checks #43956 through #43977 and direct deposits #8760 through #8809 and bills dated December 12, 2005 through January 6, 2006 in the amount of $1,012,099.69, checks #72844 through #73012, and wire and electronic transfers in the amount of $612,488.68 and the minutes of the regular meeting held on December 12, 2005 be approved as presented. Motion carried.

The Monthly Injury Report for December 2005 was reviewed.

Mr. Leoni reviewed the 2006 LEA Meeting Schedule and LEA Board members for the Commissioners along with the construction underway at the Virginia Power Plant. Parts for the new boiler are now beginning to arrive. Parts will be stored inside at a location in the 100 block of 6^th Avenue South, directly to the east of the Plant. Other parts will be stored at a location located in the 600 block of Third Street North, adjacent to Festival Foods.

Mr. Leoni reviewed the recent demolition of the buildings located in the 600 block of Third Street South. Demolition of the old Creamery Building will not take place until scheduled sometime in 2006.

Moved by Raukar and supported by Park to approve the separation agreement with Daniel Rebovich dated January 31, 2005, effective September 16, 2001; to approve the hiring of Tracy Peterson as Supervisor – Accounting with a start date of December 28, 2005 and a hire date of October 22, 2001 for benefit purposes; to award the position of Temporary Customer Serviceman to Scott Johnson with a start date of January 3, 2006; to award the position of Seasonal Serviceman – Inspector to Lowell Jenson with a start date of January 3, 2006. Motion carried.

The General Manager asked that the Commission meet in close session at the end of tonight’s meeting to discuss a personnel issue.

Moved by Raukar and supported by Park to approve a 19-month coal contract with Midwest Energy Resources to be effective January 1, 2006 and run through August 31, 2008. Motion carried. The General Manager discussed the supply of coal to both Virginia and Hibbing Public Utilities as well as to mines in the Virginia / Hibbing area. Due to the increase in coal costs, meetings will be held to discuss avenues available to decrease future costs for coal to the Utility.

Carried forward

City of Virginia

Public Utilities Commission

Meeting Minutes

January 9, 2006

Brought forward

An update on the AMR Project was given by the Director of Finance and Administration. The Ridgewood area of Virginia is currently having AMR equipment installed and will be the next area to be read using the new Automated Meter Reading System. The current goal is to have nine more meter reading routes installed onto the AMR System by March 2006 in order to free up one Meter Reader from the monthly reading schedule. AMR installations are focusing primarily on residential accounts.

The General Manager reported that Dallas Fiskari, Supervisor – Steam, Water, and Gas is currently working with the Mesabi Range Community and Technical College regarding their providing classes that will offer students training to assist them in obtaining the skills required to fill intern level positions at the Utility. This intern training will provide the Utility with skilled applicants when hiring for the future.

The General Manager reviewed the recent meetings held with the City’s Street and Alley Committee with regard to projects scheduled by the City to be done in 2006 and the Utility related work the City would like the Utility to complete. Another meeting will be set to continue discussions on the City’s and the Utility’s responsibilities with regard to the projects set to be done each year by the City. The Utility needs to determine where funding can be obtained for these projects. At the current time, the Utility’s 2006 Budget does not have the funding required for the projects set by the City. Several suggestions to raise the funds were reviewed and will be conveyed at the next meeting.

Councilor Steve Peterson notified the Commissioners that he will not be a liaison from the City Council after tonight’s meeting.

The December 22, 2005 memorandum from the Director – HR / Safety on the Department’s Safety Eyewear Program was reviewed. How billings for extras on safety eyewear was discussed and it was noted that employees will be notified of the changes. Approval to switch to “split billing” and update the Department’s safety eyewear policy to include this change to be effective January 1, 2006 was requested. Moved by Park and supported by Raukar that the Department move to the split billing process and update the Department’s safety eyewear policy to include this change effective January 1, 2006. Motion carried.

The Commission President closed the meeting to discuss a personnel issue at 5:20 p.m.

The Commission President reopened the regular meeting at 5:50 p.m.

The Commission reviewed staffing levels that will be acted on at the January 23, 2006 regular meeting of the Commission.

There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 5:51 p.m. 

ATTEST: APPROVED:

_________________________ ___________________________

Matt Raukar, Interim Secretary Dr. Don Sipola, President