approved

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, APRIL 10, 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 / Customer Relations Supervisor; Doug Ganoe – Director of Operations Production; City Councilors – Dennis Lindberg, Rob Raplinger, and Carl Baranzelli.

The General Manager noted a copy of an email on the table for the Commissions. Gerald Peterson, Sr. Project Manager for Boldt Construction had emailed Mr. Leoni complimenting Lorraine Ilminen on the outstanding job she is doing on all the Foster Wheeler equipment in conjunction with the Biomass Project. The General Manager also added that Jim Sereno, Materials Clerk / Handler, has also been assisting in this work and is doing an outstanding job.

Moved by Park and supported by Raukar that financial Resolution No. 5077 authorizing the payroll dated March 30, 2006 in the amount of $92,946.27, checks #44118 through #44139, and direct deposits #9063 through #9114; and bills dated March 27, 2006 through April 11, 2006 in the amount of $406,710.56, checks #73478 through #73552, and wire and electronic transfers in the amount of $63,916.70 and the minutes of the regular Commission meeting held on March 27, 2006 be approved as presented. Motion carried.

The March 2006 Monthly Injury Report was reviewed and filed.

The General Manager updated the Commission on the construction phase of the Biomass Project. The major portion of the concrete work has been completed; steel will be hung beginning April 17, 2006; construction is on schedule and on budget. The wood yard, to be located at the Mt. Iron site, has been cleared and service roads are being upgraded. All of the equipment for the wood yard has been ordered except for the grinders. It is expected that personnel will be on site at the wood yard by September 2006. Biomass training to review the instrumentation for the new biomass boiler will be held in Denver, Colorado April 30 – May 5, 2006.

The General Manger reported on the construction of the Department’s new storage building to be located on Third Street South and 7^th Avenue. The old Creamery building will be demolished in the fall of this year and a second new building will be erected at that time. The current alley located in that block will not be vacated. However, a fence will be erected preventing public use of the alley.

Moved by Park and supported by Raukar that Doug Ganoe, Kevin Zinter, Ray Pesavento, and Dan Asp be authorized to attend a review of instrumentation and DCS for the new biomass boiler, April 30 – May 5, 2006 in Denver, Colorado at a total estimated cost of $3,496.95. Motion carried.

Moved by Park and supported by Raukar that Connie Larson be authorized to attend the Minnesota Safety Council Annual Safety Conference on May 10-12, 2006 in Minneapolis, Minnesota for a total estimated cost of $719.27. Motion carried.

carried forward

City of Virginia

Public Utilities Commission

Meeting Minutes

April 10, 2006

Page 2

brought forward

Moved by Park and supported by Raukar that George Croft and Greg French be authorized to attend the Minnesota Safety Council Annual Safety Conference on May 10-12, 2006 in Minneapolis, Minnesota for a total estimated cost of $1,438.53. Motion carried.

Moved by Park and supported by Raukar that management be authorized to hire Mark Krummi to fill the position of Plant Electrician, subject to the probationary period and terms of the AFSCME Labor Agreement with a start date of April 17, 2006. Motion carried.

The next negotiation meeting for the AFSCME Labor Agreement is set for April 12, 2006.

An update on the AMR Project was given by Bill Hafdahl. AMR installations in Williams Addition should be completed within the next few weeks. Approximately 30-40 gas installations have yet to be installed in that area and are expected to be done over the summer as time permits. Beginning April 17, 2006 testing of the system will begin in selected areas.

Mr. Leoni reviewed the report on the 2006 MMUA Legislative Conference included in the Commissioners’ packets. Of particular note were the following: (1) CIP Program – Virginia’s special legislation to allow 50% of their CIP budget to be used on repairs to the district steam heating system sunsets effective June 30, 2007. With the help of MMUA staff, Greg Oxley, DPU is working to extend this allowance indefinitely. Efforts appear to be working in favor of the DPU; (2) Clean Renewable Energy Bonds (CREBs) – update on the federal program and insights as to who may be applying statewide and the opportunity to participate in the MMUA bond pool (MCMU); and (3) a dinner with Iron Range Legislative leaders Senator Tomassoni and Representatives Tom Rukavina and Tony Sertich provided insights from these Legislative leaders.

Commissioner Sipola asked that the current Water Line Freeze Prevention System Policy be reviewed to evaluate whether wording should be included as to why there are limitations on when customers are approved to install a Water Line Free Prevention System. Mr. Leoni will have this reviewed in the fall after the construction season has come to a close.

Councilor Lindberg informed the Commission that he had been contacted by a customer regarding the number of days on the last bill the customer received. Mr. Lindberg also noted that one of his properties had a longer read length on the last billing. The Director of Finance / Administration noted that customers affected by installations of the Automated Meter Reading System had all received letters in January 2006 explaining the possible change in the number of days in billing cycles reflected on bills over the next few months. The accounts noted by Mr. Lindberg would be checked to determine the number of days in the billing cycle and the reasons causing any change.

There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 5:15 p.m.

ATTEST: APPROVED:

_______________________ ___________________________

Matt Raukar, Secretary Dr. Don Sipola, President