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 23, 2007, AT 4:30 P.M.

Commission President Sipola called the meeting to order at 4:33 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 Councilor – Dennis Lindberg.    

Councilor Lindberg addressed the Commission pertaining to the need to have two Commission meetings a month during the summer.  Commission President Sipola reported the Commissioners had discussed having only one meeting a month and it was decided to continue with two meetings a month.

Moved by Park and supported by Petroskey that financial Resolution #5109 authorizing the payroll dated July 18, 2007, in the amount of $106,328.64, checks #44977 through #45008, and direct deposits #10865 through #10918; and bills dated July 15, 2007 through July 23, 2007 in the amount of $880,128.73, checks #76601 through #76693, and wire and electronic transfers in the amount of $93,047.73 and the minutes of the regular meeting held on July 9, 2007 be approved as presented.  Motion carried.

General Manager Terry Leoni reviewed the June 2007 Monthly Injury Summary Report.  All injuries resulted in no lost time and no restrictions. 

Mr. Leoni noted the approved minutes of the June 19, 2007 LEA meeting along with the agenda for the LEA July 17, 2007 meeting were in the Commissioners’ packets for their information.  These items will be contained in all future Commission Packets and listed on the Utility Commission meeting Agendas under the section Reports of Advisory Committees.  Council Liaisons receiving copies of the Utility Commission Meeting Packets will be receiving copies of the same LEA information.

The Director of Finance and Administration, Bill Hafdahl, noted the Virginia City Council did pass a resolution supporting the Virginia Utilities participation in the formation of a Minnesota Natural Gas Agency under the guidance of the MMUA.  MMUA will be notified of the action so they can move forward with the formation of the Agency.

Mr. Leoni reported that at midnight last night Power Plant personnel noted a reduction in the wood storage moving to the boiler.  Upon investigation an auger was found to have broken.  The auger is being rebuilt and repair work should take approximately three weeks.  Warranty coverage is being examined.  Two new augers are on order and Mr. Leoni will check to see if the broken auger can be repaired locally and at lesser cost.

Mr. Leoni reviewed the Settlement Memorandum dated July 2007 between LEA, VPUC, HPUC, and Barr Engineering Company included in the Commission packets.  The Settlement Memorandum pertains to the dispute regarding Barr’s services relating to the design and construction of wood-handling facilities at the Hibbing and Virginia power plants resulting in delays, errors, and omissions by Barr resulting in additional costs to construct those facilities.  LEA approved this settlement memorandum at their July 17, 2007 meeting and asked that the Virginia and Hibbing PUC also approve the settlement memorandum.  Mr. Leoni reported that Barr had handled the issues that arose.  The Virginia Utilities is an owner of LEA and therefore needs to approve this settlement.  Moved by Raukar and supported by Petroskey to support the Settlement Memorandum as presented and the LEA Chairman be authorized to approve the Settlement Agreement.  Motion carried.

Carried forward

City of Virginia, Minnesota

Department of Public Utilities

July 23, 2007 Meeting Minutes                                                                                                  Page 2

Brought forward

Mr. Leoni reported Congressman Oberstar was able to add a special provision in recent legislation to provide $1 million for the Laurentian Energy Authority Biomass project.

Mr. Hafdahl reviewed the June 30, 2007 financials contained in the meeting packet, specifically the June 30, 2007 Combined Operating Statement. 

Mr. Leoni reported that all five security cameras in and around the business office building and the power plant buildings are working. 

It was noted by Mr. Leoni that customers are notified when work will be done in and around their homes that may affect access and or services.  Door notices are delivered to all affected service locations before the work begins. 

Mr. Leoni also reported that a squirrel was responsible for a transformer going down at about 6:30 a.m. this morning. 

There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 5:12 p.m.

ATTEST:                                                                      APPROVED:

_______________________                                      ___________________________

Matt Raukar, Secretary                                                 Don Sipola, President