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, MAY 22, 2006 AT 4:30 P.M.

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

Present: Commissioners Bloomquist, Muskovitz, Park, and Sipola.

Absent: Commissioner Raukar.

Also Present: Terry Leoni, General Manager; Bill Hafdahl – Director-Finance & Administration; Sue Lalli, Public Relations / Customer Relations Supervisor; Doug Ganoe – Director of Operations Production; Dennis Lindberg and Rob Raplinger - City Councilors.

Commissioner Sipola asked the Director of HR / Safety to report on the conversation with the consultant recommended to help the Department develop a performance evaluation for the General Manager. The Director of HR / Safety reported that the City and the VRMC were not interested in participating and the cost would be $1500 - $2000 to the Utility Department. The Director of HR / Safety suggested that she could assist the Commission in developing an evaluation process for the General Manager. After discussion it was moved by Bloomquist and supported by Park to have the Director of HR / Safety prepare training for the Commissioners to help them complete a performance evaluation of the General Manager. Motion carried.

The list of property owners requested to put down a deposit on their utility account was reviewed.

Moved by Park and supported by Muskovitz that financial Resolution No. 5080 authorizing the payroll dated May 11, 2006 in the amount of $89,500.79, checks #44186 through #44210, and direct deposits #9220 through #9272; and bills dated May 8, 2006 through May 22, 2006 in the amount of $547,740.78, checks #73731 through #73811, and wire and electronic transfers in the amount of $146,513.20, and the minutes of the regular Commission meeting held on May 8, 2006 be approved as presented. Motion carried.

The General Manager, Terry Leoni, and the Director of Operations Production, Doug Ganoe, updated the Commission on the construction phase of the Biomass Project. Construction continues in the new area of the plant and to date the project continues to be on schedule and on budget. Installation of the boiler should begin sometime in the next two weeks. The LCMR grant in the amount of $400,000 for plantation development that was passed by the Legislature at the end of the last session and subsequently vetoed by the Governor was recommended to the Legislature by the LCMR for this session and was passed by the Legislature at the end of this session. In addition, a personal property tax exemption for LEA was also passed.

Moved by Park and supported by Bloomquist to tentatively approve the AFSCME Local #729 Labor Contract as presented pending the Union’s vote on May 31, 2006 with a final copy of the Contract presented after the Union vote. Commissioner Muskovitz abstained. Motion carried.

Mr. Leoni reviewed the clean up of the Old Gas Plant site and now prepared for economic development by the City of Virginia.

There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 5:07 p.m.

ATTEST: APPROVED:

_______________________ ___________________________

Jackie Park, Vice President Dr. Don Sipola, President