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 25, 2005, AT 4:30 P.M.

Commissioner Sipola called the meeting to order at 4:32 p.m.

Present: Commissioners Marks, Raukar, Park, Bloomquist, and Sipola.

Absent None.

Also Present: Terry Leoni, General Manager; Sue Lalli, Supervisor-Public Relations; Douglas Ganoe, Director-Operations; Lorraine Ilminen, Supervisor-Materials Management; City Councilor Rob Raplinger.

Discussion was held on the City Council’s two motions made at a special meeting on April 19, 2005, that impact the Virginia Public Utilities. Mr. Leoni commented as he wrote in a letter to the Mayor and City Council, it is unfortunate these motions were made without the courtesy of an invitation or notice by agenda so that the facts and accurate information could be made available to the City Council.

Moved by Bloomquist and supported by Marks that financial Resolution #5053 authorizing the first half of April 2005 payroll in the amount of $84,418.33 checks #43482 through #43504 and direct deposits, and bills dated April 25, 2005, in the amount of $1,223,408.28 checks #71285 through #71354, and the second half of April 2005 wire and electronic transfers; and the minutes of the regular meeting held on April 11, 2005, is approved as presented. Motion carried.

Mr. Leoni reviewed the organizational meeting held on the Laurentian Energy Authority I, LLC and Laurentian Energy Authority II, LLC on April 20, 2005. In May 2005, discussion will be held with the Commission on the infusion of cash to the Laurentian Energy Authority I, LLC.

A Commission Finance Committee-of-the-Whole meeting was held earlier today to discuss steam repair or abandonment in areas of the steam system that meet criteria for a payback period, low density, and a threshold on losses. At the April 11, 2005 meeting, Management reported a huge repair area on Southside from 210 11^th Street South to the South end of the City that needs to take place. The estimated cost of this repair is $40,000 to $50,000. In this area only six homes remain on the steam system while seven homes have voluntarily abandoned the steam system. The Virginia Public Utilities’ cost to charge the steam supply East of the 210 11^th Street South service to the South end of the City is $16,177 per year with annual revenue of $10,331 per year (based on 2004). If the East steam feed were cut just past the service to 210 11^th Street South, the steam line West of 210 11^th Street South would remain active and would cost the Virginia Public Utilities $13,593 per year with annual revenue of $13,849 (based on 2004). Meetings will be held with the remaining six property owners to explain the problem and request they involuntarily remove themselves from the steam system by September 1, 2005, under the same terms and conditions offered previous property owners who have been involuntarily removed from the steam system for economic and density purposes. Moved by Park and supported by Marks that the area East of 210 11^th Street South to the South end of the City with the remaining steam customers reduced below 50% on steam heat, the steam main be cut just East of the 210 11^th Street South by September 1, 2005, and offer the same incentives as offered to those steam customers that have previously been involuntarily terminated. Management will send certified letters indicating the Commission’s action to the six steam customers in the identified service area and informational meetings will be held with these six customers. Motion carried.

Discussion was held on staffing. With Jim Sereno awarded the Material/Clerk Handler position, Management posted the Janitor/Laborer position. In addition, Management posted for a Temporary Fuelhandler/Utilityman. On July 01, 2005, Connie Larson will be filling the full-time Human Resources / Safety Coordinator management position.

There being no further business to come before this meeting, it was moved by Marks and supported by Raukar that this meeting is adjourned. Motion carried. Adjournment at 5:13 p.m.

ATTEST: APPROVED:

___________________________ ______________________________

Jerry Marks, Secretary Dr. Don Sipola, President