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 TUESDAY, OCTOBER 9, 2007, AT 5:00 P.M.

Commission President Sipola called the meeting to order at 5:00 p.m.

Present: Commissioners Park, Sipola, Bloomquist.

Absent: Commissioners Petroskey, Raukar.

Also Present: Terry Leoni-General Manager; Bill Hafdahl–Director-Finance & Administration; Sue Lalli-Public Relations / Customer Service Supervisor; Customers – June Merkel, Joyce Rude, and Rose Wolfe.

Commission President Sipola noted he was contacted by a Realtor regarding the sale of a commercial building on Chestnut Street. Information was requested on the deposit required from property owners when purchasing on a contract for deed. General Manager Leoni and Director of Finance & Administration Hafdahl reviewed deposits required from owners purchasing under a contract for deed.

Moved by Park and supported by Bloomquist that financial Resolution #5114 authorizing the payroll dated October 4, 2007 in the amount of $100,305.43, checks #45126 through #45147, and direct deposits #11134 through #11186; and bills dated September 24, 2007 through October 9, 2007 in the amount of $484,425.87, checks #77123 through #77225, and wire and electronic transfers in the amount of $108,628.16 and the minutes of the regular meeting held on September 24, 2007 be approved as presented. Motion carried.

General Manager Leoni reported a meeting was held last week with representatives from the League of Minnesota Insurance Trust regarding the Department’s insurance. The Department will be sending a letter to the League on the results of that meeting as it pertains to the Department’s insurance coverage.

The September 2007 Monthly Injury Summary report was received, showing no injuries during the month of September.

Commission President Sipola noted the next LEA meeting would be held in Virginia at 5:30 this evening.

Due to the holiday on Monday, November 12, 2007 it was moved by Park and supported by Bloomquist the first regular Commission meeting in November would be held at 4:30 p.m. on Tuesday, November 13, 2007. Motion carried.

Discussion was held on moving the second regular Commission meeting in October as Mr. Leoni and Commission President Sipola would be absent. The second regular Commission meeting in October would be held as scheduled on October 22, 2007 at 4:30 p.m. The Director of Finance and Administration will forward information on the purchase of natural gas to the Commissioners prior to the October 22, 2007 meeting for their review.

Mr. Leoni reported the second environmental compliance test of the biomass boiler took place on October 2, 2007. The test results have not been received, however all signs indicate compliance. The Department continues to work with Foster Wheeler on issues pertaining to the failure of the first compliance test in May 2007.

Mr. Hafdahl noted he attended the initial meeting and subsequent Board meeting held on Monday, October 8, 2007 by MMUA on the formation of a Minnesota Natural Gas Agency.

There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 5:16 p.m.

ATTEST: APPROVED:

_______________________ ___________________________

Jackie Park, Vice President Don Sipola, President