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 23, 2007, AT 4:30 P.M.

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

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

Absent:             None     

Also Present:    Bill Hafdahl – Director-Finance & Administration; Sue Lalli, Public / Customer Relations Supervisor; Don Rindfuss – Director Operations Distribution (W & S); Rob Raplinger - City Councilor – Utility Commission Liaison; Renee Prout and Dante Tini, Tini Square - Customers.

Mr. Hafdahl reviewed the April 18, 2007 letter from Technical Loss Adjustment on the #1 turbine damage claim.  Mr. Leoni and Mr. Hafdahl will keep the Commission updated until a final settlement is reached on this claim.

Commission President Sipola noted a letter received April 12, 2007 from Mike Niemi rescinding the separation agreement for employment signed on April 2, 2007.  The letter was received and filed.  Mr. Hafdahl noted attempts are being made to negotiate a new settlement.

Ms. Renee Prout, Tini Square, addressed the Commission on the possibility of setting up Payment Agreements on two of the accounts at Tini Square - #30753200 and 30753150.  She had met with Sue Lalli and the payments needed to be made as requested by the General Manager on the two accounts were not acceptable.  Ms. Prout has been paying on Payment Agreements for both these accounts since March of 2006 and continues to be unable to handle payment of the utility billings in full each month.  Ms. Prout has met with the General Manager, as well as Sue Lalli, without satisfaction and she needs the Commission to consider lowering the amount required for payments each month in order to allow time to find new tenants to replace those leaving the Tini Square Building.  After discussion on changes that can be considered at the Tini Square building and possible conservation items, it was moved by Muskovitz and supported by Raukar that Ms. Prout, Tini Square, be allowed to pay a total of $3000 a month for three months, towards both accounts.  Both accounts to be non-penalizable during that period.  At the end of the three months, a new Payment Agreement could be set up for both accounts, if needed, so the account balances would become   current.  Motion carried. 

Moved by Park and supported by Muskovitz that financial Resolution #5102 authorizing the payroll dated April 12, 2007 in the amount of $92,836.96, checks #44794 through #44814, and direct deposits #10492 through #10542; and bills dated April 10 through April 23, 2007 in the amount of $1,356,609.42, checks #75968 through #76055, and wire and electronic transfers in the amount of $152,503.94 and the minutes of the regular meeting held on April 9, 2007 be approved as presented.  Motion carried.

After discussion, moved by Raukar and supported by Petroskey Management be authorized to hire Jason Starc as a seasonal Serviceman / Welder having passed his 6-G welding test.  Motion carried.

Don Rindfuss reviewed the bids received for a 2007 Gas Project – replacement of steel gas mains with plastic gas mains.  After discussion, it was moved by Raukar and supported by Petroskey to accept the bid of Quality Underground to continue with the abandoning of steel gas mains and replace them with plastic gas mains at a total base bid of $63,125.  Motion carried

Moved by Raukar and supported by Petroskey to authorize attendance at the Annual Safety Conference in Minneapolis on May 8-11, 2007 for the Safety / Training Coordinator at a total estimated cost of $874.08.  Motion carried.

Carried forward

City of Virginia                                                                                                              page 2

Department of Public Utilities

Meeting Minutes

April 23, 2007

Brought forward

Don Rindfuss presented the Commission with the Minnesota Office of Pipeline Safety Recognition Award that was presented to the Utility for keeping response time to less than 20 (twenty) minutes for 93% of gas issues.  The Award will be hung in the Commission Conference Room.  Rod Raplinger will convey the Award information to the City Council at their next regular meeting.  Mr. Raplinger would also ensure the information would be in the local newspaper so the Customers in Virginia know the Department responds to any gas issues in a swift manner.

The Commission held a brief general discussion on the water main damage claim presented at the last Commission meeting.  The Commission will be kept up-to-date on the progress of the claim.

There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 5:26 p.m.

ATTEST:                                                                      APPROVED:

_______________________                                      ___________________________

Matt Raukar, Secretary                                                 Dr. Don Sipola, President