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 24, 2007, AT 4:30 P.M.

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

General Manager Terry Leoni reviewed a letter received from the League of Minnesota Cities regarding insurance coverage for the Utilities and LEA. Mr. Leoni has been working with the League since 2003 regarding clarifications of insurance terms and insurance coverage for the Utility. A meeting is set for October 4, 2007 when representatives from the League will be meeting in Virginia to continue discussions on insurance coverage for the members of the League as well as the items contained in the September 7, 2007 letter to the Department.

Moved by Raukar and supported by Petroskey that financial Resolution #5113 authorizing the payroll dated September 13, 2007 in the amount of $102,761.07, checks #45101 through #45125, and direct deposits #11081 through #11133 and bills dated September 10, 2007 through September 24, 2007 in the amount of $1,226,813.24, checks #77022 through #77122, and wire and electronic transfers in the amount of $157,946.40 and the minutes of the regular meeting held on September 10, 2007 be approved as presented. Motion carried.

The unapproved LEA minutes from the August 23, 2007 meeting and agenda for the LEA Meeting that was to be held on September 18, 2007 were reviewed. It was noted that the September 18, 2007 meeting was not held as a quorum was not present. The next LEA meeting will be held on October 9, 2007 in Virginia.

It was moved by Raukar and supported by Petroskey that attendance at the Northeast Cooperative Workshop on Organization to be held in Mt. Iron, Mn. on October 12, 2007 for a total estimated cost of $267 be authorized for two management members and one bargaining unit member. Motion carried

It was moved by Park and supported by Petroskey that attendance at Forklift training to be held on September 26, 2007 in St. Paul, Mn. at a total estimated cost of $719.52 be authorized for one management member and one bargaining unit member. Motion carried.

Mr. Leoni reviewed a new resolution adopted by the Virginia City Council on September 12, 2007 to extend the Project Labor Agreement originally adopted for a one-year trial period to an indefinite period of time. The Utility Commission’s original motion did not limit the use of the Project Labor Agreement to any period of time. Moved by Park and supported by Raukar to support the City Council’s resolution to extend the Project Labor Agreement indefinitely as presented at their September 12, 2007 meeting. Motion carried.

Mr. Hafdahl, Director of Finance and Administration, reviewed his recent meeting with the City Finance Director regarding retirees’ health insurance liability. The City, Utility, and the Hospital are looking at addressing this liability in the 2008 budget process. A meeting will be held on October 2, 2007 to review how this funding is to be handled. A notice of the meeting time will be sent to the Commissioners.

Mr. Leoni reviewed the recent fire in the LEA wood yard in Mt. Iron and noted there was no loss to wood at the site as a result of the fire. Arrangements are under way to have a fire hose kept at the wood yard and plans call for three more hydrants to be installed at the site, making four fire hydrants total. Wood yard employees have had training and will continue to have training on handling of fires that may occur at the yard.

Councilor Lindberg noted the article contained in the meeting packet on the City of Fairmont, Mn. shutting down their steam district heating system after 87 years on continuous operation.

There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 5:07 p.m.

ATTEST: APPROVED:

_______________________ ___________________________

Matt Raukar, Secretary Don Sipola, President