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 23, 2009, AT 4:30 P.M.

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

Present: Commissioners Bloomquist, Petroskey, Raukar, and Marks

Absent: Lucarelli

Also Present: Terry Leoni – General Manager; Bill Hafdahl – Director-Finance & Administration; Connie Larson - Director-HR/Safety; Dennis Lindberg and Charles Baribeau – Councilors; Chuck Ramsey, MDN; representative of Virginia City Cable Commission for purpose of taping the meeting

Moved by Raukar and supported by Petroskey that financial Resolution #5138 authorizing the payroll dated February 26, 2009 in the amount of $99,975.59, checks #46060 through #46081, and direct deposits #13165 through #13218; and the payroll dated March 12, 2009 in the amount of $101,245.60, checks #46082 through #46103, and direct deposits #13219 through #13272; and the bills dated February 24, 2009 through March 23, 2009 in the amount of $1,788,651.95, checks #80984 through #81130, and wire and electronic transfers in the amount of $1,414,737.02 be adopted and the minutes of the February 23, 2009 Commission meeting be approved as presented. Motion carried.

The Commission reviewed the LEA minutes and General Manager Leoni reported that all initiatives previously discussed are being worked on. President Bloomquist noted that there will be a LEA Meeting in Hibbing, Minnesota on March 24, 2009 at 5:30 p.m. Commissioner Marks asked if the wood boilers were running at both locations. Leoni reported that the Virginia boiler had been online since March 4^th and Hibbing has had trouble with duct work on their ID fan but it should be resolved tomorrow. Councilor Lindberg asked if the operations schedule was being followed and Leoni replied affirmatively.

The February 2009 Monthly Injury Summary Report was reviewed. The Report shows one accident with no lost time during the February 2009 time period.

Moved by Petroskey and supported by Marks that the Director-HR/Safety be authorized to attend a Safety and Loss Control Workshop in Biwabik, Minnesota on April 30, 2009. Motion carried.

Moved by Raukar and supported by Petroskey that the Safety & Training Coordinator be authorized to attend Confined Space/Hazardous Rescue training in Proctor, Minnesota on March 31, 2009. Motion carried.

Moved by Raukar and supported by Petroskey that two members of the Safety Committee be authorized to attend a Safety Conference in Bemidji, Minnesota on March 31, 2009. Motion carried.

Leoni reported that a senior Operator II had announced his intent to retire. Internal postings were put up and through the “domino effect” an opening occurred in the Fireman II position. Interviews were held and a candidate selected. He noted that the position needed to be replaced to maintain operation in the Plant. Moved by Marks and supported by Raukar that a letter be sent to Brian Grew thanking him for his years of service, that his letter of retirement be accepted, that the postings be awarded, and that the hiring of Brian Conaway as Fireman II be authorized. Motion carried.

Leoni reported that the AFSCME union presented the Utility’s last proposal at their March 11, 2009 union meeting but there has been no official notification of what occurred at that meeting. Negotiations and mediation are on hold. President Bloomquist asked that the Commission be kept advised.

Carried Forward

City of Virginia page 2

Department of Public Utilities

Commission Meeting Minutes

March 23, 2009

Brought Forward

Under the Manager’s/Staff Report, Leoni explained that the steam system summary and priorities report was prepared each year at the Commission’s request to outline summer work plans. There is an aggressive schedule for 2009 which will be achieved without seasonals or interns due to budget constraints. Any emergencies that arise will take priority. The City of Virginia also receives a copy of this report.

Also included was a water break report comparing 2007-2008-2009. Leoni reported that 2007 was a “horrific” year with 23 water main breaks. 2008 had only 4 while 2009 has had 12 so far. He also reminded the Commission that these water breaks typically occur after hours and on weekends and require overtime to get the work done. It generally is not something that can wait for regular work hours.

Leoni reviewed the 2009 Water Projects, Hydrant, and Valve Priority list and explained that it is scheduled similar to steam projects and will be done without seasonals or interns this year.

Leoni reported that the MMUA annual legislative update will be held in Bloomington on

March 25-27, 2008. He, Finance Director Hafdahl, and Commissioners Bloomquist and Marks will be attending.

Commissioner Marks asked what the policy was for burnt-out streetlights. Leoni explained that in the past, employees did “lightway tours” in the evening to look for lights out. However, due to overtime restrictions, they are now counting on citizens to call in when they notice streetlights are out. A reminder will be in the next customer newsletter.

Councilor Lindberg noted that it is good to see the biomass boiler running again. He said it is hard for some citizens to understand that it was down for repairs during the winter when coal is so expensive. Leoni explained that coal is expensive year-round and that the repairs are scheduled to coordinate operations with Hibbing Public Utilities.

Councilor Baribeau reported that he and Leoni were interviewed by a reporter from “Business North” today. The reporter asked very thorough questions about the biomass project and took pictures. He is not sure when the article will be printed.

There being no further business to come before the Commission, Commission President Bloomquist declared the meeting adjourned at 4:43 p.m.

ATTEST: APPROVED:

____________________________ ____________________________

Matt Raukar, Secretary Quentin Bloomquist, President