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, OCTOBER 23, 2006 AT 4:30 P.M.

Commissioner Sipola called the meeting to order at 4:33 p.m.                  

Present:                        Commissioners Bloomquist, Muskovitz, Park, and Sipola.

Absent:             Commissioner Raukar.      

Also Present:    Terry Leoni - General Manager; Bill Hafdahl - Director-Finance & Administration; Sue Lalli - Supervisor-Public Relations / Customer Service; Don Rindfuss - Director, Operations Distribution (Electric & Gas); Greg French – Director, Operations Distribution (Steam & Water);  Dennis Lindberg and Carl Baranzelli, City Councilors. 

Councilor Lindberg addressed the Commission on the deposit requested from Bon-Ton, Inc., the new owners of the Herberger’s store that is renting space in the Thunderbird Mall.  The Director of Finance explained the Department is currently working with Bon Ton to set up the utility account for the new owner along with handling the required renter’s deposit for service. 

Mr. Leoni updated the Commission on the status of the utility accounts for Staver’s Foundry.  An attorney representing the Foundry contacted Mr. Leoni and has been requested to work with the City Attorney regarding outstanding utility billings for the Foundry prior to September 26, 2006.  Mr. Leoni was also contacted by a real estate broker working with a prospective buyer for the Foundry.  The Department has requested the City place a special assessment on the property for the total outstanding utility billings through September 25, 2006.

The Commission noted that Mr. Richard Kubiszewski, a utility customer disputing a door hanger fee to be billed to him, did not appear as scheduled.  After a review of the information regarding the door hanger fee for Utility Account No. 51061755 it was moved by Bloomquist and supported by Park that the $25 door hanger fee to be billed on Utility Account 51061755 stand in accordance with the Department’s late fee policy.  Motion carried.

Moved by Park and supported by Bloomquist that financial Resolution No. 5090 authorizing the payroll dated October 12, 2006 in the amount of $101,658.57, checks # 44484 through # 44506, and direct deposits #9811 through #9864 and bills dated October 13, 2006 through October 19, 2006 in the amount of $613,264.54, checks #74732 through #74823, and wire and electronic transfers in the amount of $155,139.57 and the minutes of the regular Commission meeting held on October 9, 2006 be approved as presented.  Motion carried. 

Commission President Sipola reported that the Commission’s Personnel Committee meeting was held at 3:30 p.m. today and information covering guidelines for personnel performance reviews was reviewed by the Commissioners.  A performance review of the General Manager is scheduled for the next regular Commission meeting on November 13, 2006.  

Mr. Leoni reported the results of the hydro test done on the new biomass boiler have been certified.  One leak was found during a pre-hydro of the boiler and the leak was corrected.  The boiler’s commissioning will be held prior to the end of 2006.  On Monday, October 30, 2006 a ribbon cutting ceremony will be held at both the Virginia and Hibbing Biomass facilities. 

Greg French reported he had met with representatives of United Taconite regarding water breaks that are occuring on the south side of Virginia and the possible correlation between the breaks and mine blasting at United Taconite.  This summer 13 (thirteen) water breaks occurred in Virginia and the City of Mt. Iron reported a higher than usual number of water breaks over the summer months.  Mr. French will be keeping in touch with representatives from United Taconite, monitoring water breaks and mine blasting.  It was noted that the funds budgeted for water line repairs this year may possibly increase. 

Carried forward

City of Virginia                                                                                                                          Page 2

Public Utilities Commission

Meeting Minutes

October 23, 2006

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Mr. French also reported that representatives of the Quad Cities have met to look at the benefits of joining the water and sewer systems for the Quad Cities onto one system.  Issues to prepare for the rerouting of Highway 53 due to United Taconite mining operations are also being discussed.  The next meeting of the Quad Cities group will be held on October 30, 2006.  Moved by Park and supported by Muskovitz that the Commission recommend to the City Council that the City of Virginia form a committee to meet with United Taconite regarding the affects of the mine blasting on the City’s utilities.  Motion carried. 

Mr. Leoni noted there would be a retirement lunch for Dave VanDeventer on Tuesday, October 24, 2006 with a retirement cake on Mr. VanDeventer’s last day, October 31, 2006.

There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 5:27 p.m.

ATTEST:                                                                      APPROVED:

_______________________________                                  _______________________________

Jackie Park, Vice President                                           Dr. Don Sipola, President