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 23, 2005, AT 4:30 P.M.

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

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

Absent None.

Also Present: Lynn Rosebush, Director-Finance; Sue Lalli, Supervisor-Public Relations; Lorraine Ilminen, Supervisor-Materials Management; Customer Rudy Vergoth; City Councilors Steve Peterson and Rob Raplinger.

The following reports were presented to the Commission for their information:

FINANCIAL OPERATING STATEMENTS

Customer Rudy Vergoth appeared before the Commission to ask if the Virginia Public Utilities would be interested in purchasing his property at 306 7^th Avenue South. The Commission referred Mr. Vergoth to the General Manager.

Moved by Park and supported by Raukar that financial Resolution #5055 authorizing the first half of May 2005 payroll in the amount of $85,879.73 checks #43528 through #43550 and direct deposits, and bills dated May 25, 2005, in the amount of $482,266.60 checks #71471 through #71550, and the second half of May 2005 wire and electronic transfers; and the minutes of the regular meeting held on May 09, 2005, is approved as amended. Motion carried.

The Housing and Redevelopment Authority’s (HRA) May 12, 2005, letter to the City of Virginia’s Building and Grounds Committee regarding their 6^th Avenue West properties was presented and discussed. The letter asks what the City’s ultimate plan is for property located adjacent to the lakes. Commissioner Marks explained in previous discussions with the Mayor, indication was made that the City prefers to have property located near the lake remain open for green space. However, at an HRA public hearing on April 04, 2005, two City Councilors stated that may not be the preference of the present council. In addition, the HRA has had several inquiries from private individuals expressing interest in this property. Based on the City of Virginia’s objectives, the HRA can then determine what actions to take with the property. Commissioner Marks has discussed with Mr. Ganoe the steam service to the remaining house on the Sixth Avenue West properties. The Utility has approximately 600’ steam main serving that one house and there have been many repairs made to that main. Moved by Marks and supported by Raukar that the Housing and Redevelopment Authority be advised that the Virginia Public Utilities is intending to terminate the steam line to the Sixth Avenue West properties in the near future. Motion carried.

Commissioners Sipola and Park reviewed the actions taken at the Laurentian Energy Authority (LEA) meeting held on May 17, 2005, in Hibbing, Minnesota. The Board awarded the Errors and Omissions insurance to R.W. Larson Insurance Agency of Hibbing, Minnesota. LEA will hold annual election of officers at their February meetings. Commissioner Sipola reported Legislation approved reversing the percentage definition for closed loop and open loop biomass. The language change reverses the 50% closed loop to 25% and the 25% open loop to 50%.

Management requested authorization for Lorraine Ilminen, Supervisor-Materials Management, to attend a three day Fundamentals of Purchasing Seminar to be held on July 20-22, 2005, in Minneapolis, Minnesota. Course outline is developing purchasing and supply management, evaluating and redesigning supply management process, strategic sourcing and sourcing analysis methods, supplier management skills, key elements of negotiation, essential cost management techniques, and ethical and legal aspects of supply management. Moved by Raukar and supported by Marks to approve authorization for Lorraine Ilminen to attend the three day Fundamentals of Purchasing Seminar on July 20-22, 2005, in Minneapolis, Minnesota. Motion carried.

Commissioner Sipola reviewed discussion held at an Engineering meeting for the demolition project. They agreed to save the existing brick wall along 6^th Avenue South to maintain the building appearance similar to the surrounding buildings in the area.

Carried forward

Public Utilities Commission

Meeting Minutes

May 23, 2005

Page 2

Brought forward

There being no further business to come before this meeting, it was moved by Bloomquist and supported by Raukar that this meeting is adjourned. Motion carried.

Adjournment at 4:52 p.m.

ATTEST: APPROVED:

___________________________ ______________________________

Jerry Marks, Secretary Dr. Don Sipola, President