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, NOVEMBER 13, 2007, AT 4:30 P.M.

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

Present: Commissioners Bloomquist, Park, Petroskey, Sipola.

Absent: Commissioner Raukar.

Also Present: Bill Hafdahl–Director-Finance & Administration; Sue Lalli-Public Relations / Customer Service Supervisor; Councilor Dennis Lindberg.

Moved by Park and supported by Petroskey that financial Resolution #5116 authorizing the payroll dated October 25, 2007 in the amount of $98,132.94, checks #45170 through #45191, and direct deposits #11240 through #11293 and the payroll dated November 8, 2007 in the amount of $95,585.83, checks #45192 through #45213, and direct deposits #11294 through #11347; and bills dated October 23, 2007 through November 13, 2007 in the amount of $1,141,783.72, checks #77326 through #77467, and wire and electronic transfers in the amount of $169,020.59 and the minutes of the regular meeting held on October 22, 2007 be approved as presented. Motion carried.

Commission President Sipola reported a meeting of the Personnel Committee of the Public Utilities Commission, a meeting of the Committee of the Whole, was held at 3:30 p.m. today and another meeting of the Personnel Committee will be scheduled.

Mr. Hafdahl reported that no action is requested from the Commission at this time on the Natural Gas Pre-purchase Contract at this time. As a result of the drop in the housing market and uncertainty in the bond market, the pre-pay discount is lower than anticipated. The Contract is being modified to address concerns about whether or not to go forward in this market. Due to these items, the final Natural Gas Pre-purchase Contract has not yet been finalized. When the Contract is finalized, it will be brought to the Commission for approval.

Moved by Bloomquist and supported by Petroskey that two members of Management be authorized to attend the MMUA Technical Operations Conference to be held December 4-6, 2007 in St. Cloud, Mn. at a total estimated cost of $832.03. Motion carried.

Moved by Bloomquist and supported by Park to award the bid for the purchase of one 40-foot aerial lift device with service body to ABM Equipment and Supply at a total cost of $112,925.19 with the decision on the trade-in of the old vehicle to be determined by Management. Motion carried. It was noted the ABM bid was the lowest bid received and meets or exceeds 100% of the specifications as written and is below the amount budgeted.

Moved by Bloomquist and supported by Petroskey the General Manager be authorized to attend the 2007 Upper Midwest Springsted Regional Symposium to be held on December 6, 2007 in St. Paul, Mn. for a total estimated cost of $341. Motion carried.

Mr. Hafdahl reported a letter was received from Walker, Giroux, and Hahne on the 2007 audit for the Utility. There will be an increase in the cost to perform the audit as more work is now required for the audit in general. Mr. Hafdahl reported the Utility may request proposals for the Utility’s 2008 audit.

There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 4:49 p.m.

ATTEST: APPROVED:

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Jackie Park, Vice President Don Sipola, President