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, MARCH 13, 2006 AT 4:30 P.M.

Commissioner Sipola called the meeting to order at 4:40 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 / Customer Relations Supervisor; Doug Ganoe – Director of Operations Production; Dave VanDeventer – Special Projects Coordinator; City Councilor – Dennis Lindberg; AFSCME Business Agent, Steve Giorgi; Employees, Mike Berens and Lowell Jenson (AFSCME Local President); Customer, Warren Jaminski.

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Moved by Park and supported by Muskovitz that financial Resolution No. 5074 authorizing the payroll dated March 2, 2006 in the amount of $88,456.22, checks #44074 through # 44095, and direct deposits #8960 through #9010; and bills dated February 26, 2006 through March 10, 2006 in the amount of $1,220,696.03, checks #73285 through #73407, and wire and electronic transfers in the amount of $64,514.30 and the minutes of the regular Commission meeting held on February 27, 2006 be approved as presented. Motion carried.

AFSCME Business Agent, Steve Giorgi, addressed the Commission regarding DPU Grievance #060119 now at Step Three level. After discussion, moved by Raukar and supported by Muskovitz to resolve the grievance and pay the employee for the one-day suspension served on January 9, 2006. Motion carried.

Mr. Leoni updated the Commissioners on the construction underway at the Power Plant in conjunction with the Biomass Project. Construction of the boiler mat is underway. At this time, the Hibbing Public Utilities is approximately eight weeks ahead of the Virginia Public Utilities in the construction process. Virginia is on schedule and on budget at this time with the Plant scheduled to come on line the end of December 2006. The Governor is scheduled to be in Virginia on March 14, 2006 and Mr. Leoni is anticipating talking with him about reinstating the $466,000 vetoed in last year’s budget at LCMR while he is visiting the Iron Range. The next LEA meeting is scheduled in Virginia on March 21, 2006.

After discussion on the Summer Intern Training Program, Internship Program, and information received from Mr. Giorgi on behalf of AFSCME Local #729 on an Apprenticeship Program, it was moved by Bloomquist and supported by Park that DPU move ahead with the Internship Program as presented as there is no cost to DPU. Motion carried.

Moved by Raukar and supported by Park that any member of Management wishing to attend the MMUA Winter Legislative Conference on March 29-31, 2006 to be held in Bloomington, Minnesota at a cost of $165 plus accommodations be authorized to attend. Motion carried.

Bill Hafdahl updated the Commissioners on the AMR Project. AMR installations continue in the Williams Addition to Virginia and the installations in the Ridgewood area of Virginia are almost completed. Installation is anticipated to continue through the summer providing personnel can be obtained to work on the installation during the construction season.

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City of Virginia

Public Utilities Commission

Meeting Minutes

March 13, 2006

Page 2

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An update was given on the steam system and properties exceeding the 80% density threshold. The existing steam distribution system had been reviewed to account for any service areas on the Department’s distribution system exceeding the 80% density threshold. In this review it was found that there are no areas in the DPU current distribution system that fall under this density criteria with the exceptions of the 1200 block of Second Avenue West and the 200 block of Twelfth Street South, which are scheduled to be disconnected from the distribution system during the 2006 summer construction season.

A chart was presented detailing the work found needed as a result of the newly established SWEG Program. A repair schedule is currently being established to address the work identified.

There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 5:40 p.m. 

ATTEST: APPROVED:

_______________________ ___________________________

Jackie Park, Vice President Dr. Don Sipola, President