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 27, 2006, AT 4:30 P.M.

Commissioner Sipola called the meeting to order at 4:40 p.m.

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

Absent: Commissioner Bloomquist.

Also Present: Terry Leoni, General Manager; Bill Hafdahl – Director-Finance & Administration; Sue Lalli, Public / Customer Relations Supervisor; Doug Ganoe – Director of Operations Production; Greg French – Director of Operations Distribution (Steam and Water); City Councilor -

Rob Raplinger.

Moved by Park and supported by Muskovitz that financial Resolution No. 5073 authorizing the payroll dated February 16, 2006 in the amount of $86,074.71, checks #44052 through # 44073, and direct deposits #8910 through #8959; and bills dated February 16, 2006 through February 23, 2006 in the amount of $331,554.18, checks #73221 through #73284, and wire and electronic transfers in the amount of $1,298,513.31 and the minutes of the regular commission meeting held on February 13, 2006 be approved as presented. Motion carried.

Doug Ganoe updated the Commissioners on the construction underway at the Power Plant in conjunction with the Biomass Project. Demolition of the west wall of the Plant is underway. Installation of the boiler mat will then begin and is currently scheduled to be completed by mid April 2006. Mr. Leoni reported that work continues on the purchase of twelve (12) acres in Mt. Iron, Mn. to be used for a centralized wood yard. Grant papers were signed today for the $3.1 million dollars LEA is receiving from the State of Minnesota’s Taconite Fund to be used for wood yards. The funds should be received by February 28, 2006. Mr. Leoni also reported that there was no LEA meeting held during the month of February 2006 due to lack of a quorum.

Moved by Park and supported by Raukar that members of the Safety Committee – George Croft, Lowell Jensen, Dallas Fiskari, Jim Sereno, and John Miladin – be authorized to attend a one-half day Minnesota Safety Council Safety Training session covering safety culture, perception surveys, and leadership in safety to be held in Duluth, Minnesota on February 28, 2006 at a total estimated cost of $95. Motion carried.

Moved by Raukar and supported by Muskovitz that David Eliason be awarded the position of Serviceman Helper; William Niemi be awarded the position of Temporary Fuelhandler / Utilityman; and Daniel Meados be awarded the position of Fuelhandler / Utilityman. Motion carried.

Mr. Leoni reported that the first negotiation meeting for the AFSCME labor contract is scheduled for March 30, 2006.

Bill Hafdahl updated the Commissioners on the AMR Project. AMR installations continue in the Ridgewood area of Virginia; gas installation to begin in late March 2006 to that area. Installations will begin in the Williams Addition area of Virginia around March 2, 2006.

Greg French reviewed the Steam Vent Inventory presented. Seven (7) vents remain throughout the City. All vents were installed in late 2005 except for a barrel vent installed in 2004. The barrel vent requires extensive work to eliminate the problem and is not located in a customer’s yard. It is anticipated that repairs will be made during the 2006 construction season to the six (6) vents located in customers’ yards at which time the vents will be removed.

carried forward

City of Virginia

Public Utilities Commission

Meeting Minutes

February 27, 2006

brought forward

Mr. French also reported that meetings with the Virginia City Engineer regarding funding for the utility work requested by the City in conjunction with the City’s 2006 Construction Project list continue. At this time it does not appear that the City has applied for or obtained any grants to assist the Utility with the work requested by the City for the 2006 construction season.

The Utility’s work on the SWEG (Steam, Water, Electric and Gas) Program continues. This program was developed by Dallas Fiskari to identify areas requiring utility work throughout the City. Currently Servicemen are identifying areas requiring attention so that a repair schedule can be established. Mr. French will have charts for the next regular Commission Meeting detailing the work needed as a result of the Program’s findings.

There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 5:35 p.m. 

ATTEST: APPROVED:

_______________________ ___________________________

Jackie Park, Vice President Dr. Don Sipola, President