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, FEBRUARY 23, 2009, AT 4:30 P.M.

Commission President Bloomquist called the meeting to order at 4:30 p.m.

Present: Commissioners Bloomquist, Lucarelli, Marks, and Petroskey.

Absent: Raukar.

Also Present: Terry Leoni – General Manager; Bill Hafdahl – Director-Finance & Administration; Sue Lalli – Public Relations / Customer Service Supervisor; Charles Baribeau - City Councilor; two representatives of the Virginia City Cable Commission for the purpose of taping the meeting.

Commission President Bloomquist welcomed Jerry Marks to his first meeting as Utility Commissioner.

Commission President Bloomquist opened the floor for election of Commission officers for the coming year. Commissioner Lucarelli nominated the current officers to their present offices - President Bloomquist, Vice President Petroskey, and Secretary Raukar – supported by Petroskey. Commission President Bloomquist called three separate times for further nominations, there being none, declared the nominations for the offices of President, Vice President, and Secretary closed and asked the Commission Vice President to cast one unanimous ballot for the election of the current officers - President Quentin Bloomquist, Vice President James Petroskey, and Secretary Matt Raukar - to their current offices for the ensuing year. Motion carried.

General Manager Terry Leoni reviewed correspondence received pertaining to the FERC approval of the Minnesota Power Wholesale Electric Service Agreement with the Virginia Department of Public Utilities effective February 1, 2009. After discussion it was moved by Petroskey and supported by Marks to accept the FERC approval of the Minnesota Power Wholesale Electric Service Agreement with the Virginia Department of Public Utilities effective February 1, 2009. Motion carried.

Moved by Lucarelli and supported by Petroskey that financial Resolution #5137 authorizing the payroll dated January 29, 2009 in the amount of $101,033.94, checks #46015 through #46037, and direct deposits #13057 through #13110 and the payroll dated February 12, 2009 in the amount of $94,618.58, checks #46038 through #46059 and direct deposits #13111 through #13164; and the bills dated January 26, 2009 through February 23, 2009 in the amount of $1,915,740.78, checks #80817 through #80983, and wire and electronic transfers in the amount of $959,543.40 be adopted and the minutes of the January 26, 2009 meeting be approved as presented. Motion carried.

The agenda for the LEA meeting to be held at 5:30 p.m. this evening in Virginia; the minutes from the January 27, 2009 LEA meeting; and the LEA cash flow reports were received and filed. Mr. Leoni reviewed the costs associated with recent federal and state mandates currently causing utility rates to increase.

The January 2009 Monthly Injury Summary Report was reviewed. The Report shows no accidents during the January 2009 time period.

Mr. Leoni reviewed items currently under review by the Utility as possible areas where cost savings might be possible. Two areas currently under consideration are the payment of the Utility’s share of the salary for the Virginia City Attorney and the costs associated with Utility vehicle maintenance currently being done by the Virginia City Maintenance Department. Councilor Baribeau noted this would be discussed at the next Virginia City Council Finance Committee meeting to be held on March 17, 2009 at 9 a.m. Councilor Baribeau would review these items with the Utility’s General Manager and Finance Director prior to that meeting.

Mr. Leoni reported there is a general meeting of the AFSCME bargaining unit on March 11, 2009 at which time they will be reviewing the latest contract negotiation items with the general membership of AFSCME.

Finance Director Hafdahl noted the January 2009 financials would be mailed out the end of this week to the Commissioners.

There being no further business to come before the Commission, Commission President Bloomquist declared the meeting adjourned at 4:47 p.m.

ATTEST: APPROVED:

____________________________ ____________________________

Jim Petroskey, Vice President Quentin Bloomquist, President