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, JUNE 12, 2006 AT 4:30 P.M.

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

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

Absent: None.

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

Moved by Park and supported by Muskovitz that financial Resolution No. 5081 authorizing the payroll dated May  25, 2006 in the amount of $90,225.90, checks #44211 through #44235, and direct deposits #9273 through #9325 and the payroll dated June 8, 2006 in the amount of $93,101.64, checks #44236 through #44262 and direct deposits #9326 through #9379; and bills dated May 25, 2006 through June 9, 2006 in the amount of $671,678.67, checks #73812 through #73929, and wire and electronic transfers in the amount of $234,909.92 and the minutes of the regular Commission meeting held on May 22, 2006 be approved as presented. Motion carried.

The May 2006 – Monthly Injury Summary Report was presented, reflecting no injuries during the month of May 2006.

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. Setting of the boiler will begin within the next two weeks and the first firing of the new boiler will be some time around December 15, 2006.

Mr. Leoni reported AFSCME Local #729 approved the final draft of the new Labor Contact May 31, 2006. After general discussion, it was moved by Park and supported by Raukar to approve the AFSCME Local #729 Labor Contract for the period April 1, 2006 – December 31, 2008 as presented with the understanding that finalized wording on the section clarifying classification seniority will be worked out with the AFSCME Staff Representative. Commissioner Muskovitz abstained. Motion carried.

A final draft of the 2005 Audit Report was received and the Commission asked that someone from Walker, Giroux and Hahne be requested to attend a Commission Finance Committee Meeting of the whole to be scheduled for 4 p.m. on June 26, 2006 to review the Report with the Commission. Moved by Bloomquist and supported by Muskovitz that the 2005 Audit Report be approved as presented and that someone from Walker, Giroux and Hahne be requested to attend a Commission Finance Committee Meeting of the whole to be scheduled for 4 p.m. on June 26, 2006 to review the Report with the Commission. Motion carried.

Mr. Leoni reported on vandalism occurring the end of May 2006 to a large transformer stored in the lay-down area. An insurance claim has been filed and the Virginia Police Department is currently investigating the incident. Replacement of the transformer is being considered by the insurance company and there was some PCB cleanup involved.

The Director of Finance / Administration, Bill Hafdahl, reviewed the AMR steam meter ERT installation progress. Steam meters will be retrofitted with an AMR electronic devise to allow remote readings. AMR retrofitted steam meters will be installed in a section of the North Side of Virginia, test reads performed, and it is anticipated that the customer utility bills mailed out the first week of July to that section of the North Side of Virginia will contain readings for steam taken by the new AMR system. December of 2008 is the target date for installation of all AMR retrofitted steam meters to the City.

There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 5:00 p.m.

ATTEST: APPROVED:

_______________________ ___________________________

Matt Raukar, Secretary Dr. Don Sipola, President