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, sEPTEMBER 10, 2007, AT 4:30 P.M.

Commission President Sipola called the meeting to order at 4:34 p.m.

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

Absent:                       None

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

Moved by Park and supported by Raukar that financial Resolution #5112 authorizing the payroll dated August 30, 2007 in the amount of $107,719.34, checks #45071 through #45100, and direct deposits #11027 through #11080; and bills dated August 24, 2007 through September 10, 2007 in the amount of $364,093.21, checks #76913 through #77021, and wire and electronic transfers in the amount of $130,398.17 and the minutes of the regular meeting held on August 23, 2007 be approved as presented.  Motion carried. 

The Department’s Travel Policy was reviewed briefly for Councilor Lindberg.

Minutes of the LEA Meeting held on July 17, 2007 were received and filed.

Mr. Leoni reviewed the August 2007 Monthly Injury Report.

After discussion, it was moved by Raukar and supported by Park that the October 8, 2007 regular Utility Commission meeting be moved to 5 p.m. on Tuesday, October 9, 2007.  Motion carried.

Moved by Park and supported by Petroskey that the Director of Finance / Administration, one Serviceman, and one Customer Serviceman be authorized to attend the Minnesota Electric Meter School to be held at Fortune Bay September 24 – 26, 2007 at a total estimated cost of $1,010.  Motion carried.

Mr. Leoni reviewed two coal contracts on the table for review and approval by the Commission.  The new contracts are for one year to begin September 1, 2007.  Both contracts are for Wyoming Coal.  One contract is for the purchase and transportation of 50,000 tons of Wyoming coal from Midwest Energy Resources Company for coal produced from the Black Thunder Mine located in Campbell County, Wyoming.  The second contract is for the purchase and transportation of up to 50,000 tons of Wyoming coal from a joint venture partnership between Midwest Energy Resources Company and NERCO Coal Sales Company, an affiliate of Rio Tinto Energy America, for coal produced from the Jacobs Ranch Mine located in Campbell County, Wyoming.  The second contract is from a new supplier and the coal will be tested for use as the coal contains more sulfur than the Black Thunder Mine coal.  After discussion it was moved by Park and supported by Raukar the Coal Supply Agreement with Midwest Energy Resources Company for 50,000 tons of coal from the Black Thunder Mine be approved as presented.  Motion carried.  Moved by Raukar and supported by Park the Coal Supply Agreement with Midwest Energy Resources Company and NERCO Coal Sales Company for up to 50,000 tons of coal from the Jacobs Ranch Mine be approved as presented.  Motion carried.

Mr. Leoni noted the new coal from the Jacobs Ranch Mine would be burned in October 2007.

Commissioner Sipola noted he had been contacted by a customer regarding a series of street lights out on 6^th Avenue.  It was noted that the Public Works Department did have a contractor in that area doing road work and possibly the lights were out in connection with that road work.  Mr. Leoni will check into this and let Commissioner Sipola know his findings.

Mr. Hafdahl reviewed the financial reports for the year ending July 31, 2007 noting formatting changes to the combined operating statement. 

Carried forward

City of Virginia                                                                                                                                   Page 2

Department of Public Utilities

Commission Meeting Minutes

September 10, 2007

Brought forward

Mr. Leoni noted the contractors continue with the work to reroute the water line to Midway.  It appears that more time will be needed for the project due to rock ledges in the area.  A water break in the vicinity of the St. Louis County garage on Highway #135 also delayed progress.  The water break was fixed and construction is again underway.

Mr. Leoni also noted that work on the water line on 16^th Avenue has just begun.

Mr. Leoni reported that several requests were received regarding increased utility rates.  A Utility Rate Comparison was done and the rate changes that have taken place from 1997 through 2007 will be included in the October 2007 Customer Newsletter.  Looking at the rate comparison, it was noted that the rates have not increased dramatically. 

There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 5:13 p.m.

ATTEST:                                                                    APPROVED:

_______________________                                            ___________________________

Matt Raukar, Secretary                                                        Don Sipola, President