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, JULY 9, 2007, AT 4:30 P.M.

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

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

Absent: None.

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

Commissioner Sipola welcomed back Quentin Bloomquist as a Utilities Commissioner, completing the unexpired term from James Muskovitz who resigned in May 2007.

General Manager Leoni reviewed a request for information from LEA received from customer Robert Radosevich, 506 14^th St North. Mr. Leoni will be meeting with Mr. Radosevich on Tuesday, July 10, 2007 to review the information requested. Mr. Leoni will be providing a computer CD at that time containing LEA documents for Mr. Radosevich’s review.

Moved by Park and supported by Petroskey that financial Resolution #5108 authorizing the payroll dated July 5, 2007 in the amount of $100,383.94, checks #44945 through #44976, and direct deposits #10811 through #10864; and bills dated June 25, 2007 through July 9, 2007 in the amount of $1,044,497.12, checks #76484 through #76600, and wire and electronic transfers in the amount of $74,128.49 and the minutes of the regular meeting held on June 25, 2007 be approved as presented. Motion carried.

Commission President Sipola reviewed with the Commissioners items that are considered private and confidential under the Mn. State Data Practices Act as they pertain to employee payroll information.

After discussion, it was moved by Bloomquist and supported by Petroskey to authorize the capital expenditure budgeted for the City Project – Water Works – 16^th Ave So., Capital Project 8-06 budgeted at $200,000 with an actual low bid of $137,132.25 and the Midway water feed line bid as T.H. 135 Water Main Interconnect – Phase 1 – Capital Project 4-07 budgeted at $350,000 with an actual low bid of $303,736.50 – cost reflecting negotiated fee agreed upon with the low bidder, Bougalis Construction. Motion carried.

Director of Finance / Administration, Bill Hafdahl, reviewed a natural gas storage proposal that will allow the Virginia Public Utilities to inject 85,000 MMBtu of natural gas (25% of total City load) at up to 500 MMBtu/day April thru October and to withdraw 1,650 MMBtu/day November thru March of year. The cost of the storage service is estimated to be $184,000 and the potential savings is estimated to be $196,000. After discussion it was moved by Park and supported by Petroskey to authorize management to enter into a five-year natural gas storage contract that will allow the Virginia Public Utilities to inject 85,000 MMBtu of natural gas (25% of total City load) at up to 500 MMBtu/day April thru October and to withdraw 1,650 MMPtu/day November thru March of year at the total cost of the storage service estimated to be $184,000 with the potential savings estimated to be $196,000. Motion carried.

After discussion it was moved by Park and supported by Petroskey to authorize management to write off the list of unpaid accounts as presented for 2006 totaling $40,454.15 for accounts closed prior to December 31, 2004 and deemed uncollectible. Motion carried. It was noted that anyone requesting service in Virginia having an account written off, will be denied service until the total amount written off has been paid. Management also continues to attempt to collect written off accounts through its normal collections process.

Mr. Leoni noted for the Commissioners the next LEA meeting is scheduled for July 17, 2007 at 5:30 p.m. at the Hibbing Public Utilities business office at which time the first quarter financials will be reviewed. Commissioner Park noted she would be unable to attend that meeting.

A brief update on the Biomass boiler and generation was presented by Mr. Leoni and it was noted the boiler was fired up today at approximately 2 p.m.

There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 5:19 p.m. 

ATTEST: APPROVED:

_______________________ ___________________________

Matt Raukar, Secretary Don Sipola, President