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 27, 2009, AT 4:30 P.M.

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

Present: Commissioners Bloomquist, Lucarelli, Petroskey, Raukar, and Marks.

Absent: None

Also Present: Terry Leoni – General Manager; Sue Lalli – Public relations / Customer Service Supervisor; Chuck Ramsey, MDN; representatives of Virginia City Cable Commission for purpose of taping the meeting

Moved by Raukar and supported by Petroskey that financial Resolution #5139 authorizing the payroll dated March 26, 2009 in the amount of $98,001.78, checks #46104 through #46125, and direct deposits #13273 through #13326; and the payroll dated April 9, 2009 in the amount of $98,760.62, checks #46126 through #46148 and direct deposits #13327 through #13380; and the payroll dated April 23, 2009 in the amount of $109,898.87, checks #46149 through #46172 and direct deposits #13381 through #13436; and the bills dated March 23, 2009 through April 27, 2009 in the amount of $1,313,198.74, checks #81131 through #81300, and wire and electronic transfers in the amount of $1,908,836.72 be adopted and the minutes of the March 23, 2009 meeting be approved as presented. Motion carried.

The Commission reviewed the LEA minutes from the March 24, 2009 meeting. General Manager Leoni reported the LEA Meeting would be held at 5:30 p.m. this evening at the Virginia Utilities. At this time LEA is five percent ahead of schedule in providing electricity to Xcel and the LEA audit has been completed. In addition, the Virginia biomass boiler is back on line after winter maintenance, wood is on site, and things are running smoothly.

The February / March 2009 Monthly Injury Summary Report was reviewed. The accidents/incidents were reviewed and there was no lost time during the February / March 2009 time period.

Moved by Marks and supported by Petroskey that the Director-HR/Safety be authorized to attend an Employment Law Meeting in Mt. Iron, Mn on April 21, 2009 at an approximate cost of $25. Motion carried.

Moved by Marks and supported by Lucarelli that a member of the Power Plant Maintenance Crew be authorized to attend an Electrical Code Update Class at the Hibbing Community College, Hibbing Mn on April 8, 15, 22, and 29, 2009 at an approximate cost of $201. Motion carried.

Mr. Leoni presented information on a League of Mn. Cities Insurance Trust Program low interest loan that has been made available to VPU for the development and installation of a Power Plant fire detection and suppression system. Since 2003, LMCIT, the Department’s insurance carrier, has been working with all 54 Minnesota Municipal Utilities they insure in formulating a plan to address fire protection in utility power plants. The Virginia Utilities has, since 2003, examined and worked with LMCIT and their experts and consultants in formulating a comprehensive, value-added means of dealing with fire protection in “grandfathered” Utilities. There is no specific fire code that can be matched in these instances, therefore it is a hybrid. Since 2003 VPU has experienced three major insurance claims. LMCIT has asked VPU, as a result of these losses, if they would act as a BETA site in the implementation of a fire detection and suppression system. To that end, VPU has worked with experts in the field in developing a plan addressing these issues. On August 22, 2008 LMCIT authorized the current plan developed by VPU for fire detection and suppression. LMCIT offered to fund the project by offering a low interest loan ($500,000) currently at 1.65%. In February 2009 VPU bid the project and received one qualified bid. The bid came in below expert and engineering estimates from Electric Scientific Company of Duluth, Mn. It is Staff’s recommendation that VPU move forward with the bid from Electric Scientific for the fire detection and suppression system as approved by LMCIT, contingent on receiving a low interest loan in the amount of $500,000 from LMCIT.

Carried Forward

City of Virginia page 2

Department of Public Utilities

Commission Meeting Minutes

April 27, 2009

Brought Forward

Additionally, requiring the Utilities Commission and the Virginia City Council to pass resolutions accepting the loan from the LMCIT. After a detailed discussion it was moved by Marks and supported by Lucarelli to approve the low bid of $612,230 from Electric Scientific Company, Duluth. Mn, along with peripheral costs of approximately $64,102 for a total project cost of approximately $676,332 and recommend to the Virginia City Council to approve a resolution accepting a low interest loan from the League of Minnesota Cities Insurance Trust (LMCIT) in the amount of $500,000 at their next regular Council meeting. Motion carried.

General Manager Leoni reported again that AFSCME had turned down the last contract proposal at their union meeting held on March 11, 2009. Negotiations and mediation remain on hold. The Commission will be kept advised as negotiations progress.

Mr. Leoni noted that the May 2009 Regular Commission Meeting is scheduled for May 25, 2009 which is a legal holiday – Memorial Day. Moved by Marks and supported by Raukar that the May 2009 Regular Commission Meeting be rescheduled to 4:30 p.m., Monday, May 18, 2009. Motion carried.

There being no further business to come before the Commission, Commission President Bloomquist declared the meeting adjourned at 4:52 p.m.

ATTEST: APPROVED:

____________________________ ____________________________

Matt Raukar, Secretary Quentin Bloomquist, President