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, NOVEMBER 24, 2008, AT 4:30 P.M.

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

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

Absent: None.

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

General Manager Leoni noted a copy of the agenda for the Meeting of the Iron Range Resources Board meeting held today at the office of Iron range Resources, Eveleth, Minnesota had been placed on the table for the Commissioners’ information.

Moved by Raukar and supported by Petroskey that financial Resolution #5134 authorizing the payroll dated November 6, 2008 in the amount of $99,067.68, checks #45849 through #45871, and direct deposits #12727 through #12782; and the payroll dated November 20, 2008 in the amount of $103,952.61, checks #45872 through #45894 and direct deposits #12783 through #12838; and the bills dated October 27, 2008 through November 24, 2008 in the amount of $1,696,281.92, checks #80236 through #80455, and wire and electronic transfers in the amount of $238,614.92 be adopted; and the minutes of the regular meeting held on October 27, 2008 be approved as presented. Motion carried.

The agenda for the LEA meeting to be held at 5:30 p.m. on November 25, 2008 at the Hibbing Utility office; the minutes from the October 27, 2008 LEA meeting; and the LEA cash flow reports were received and filed. Mr. Leoni also noted the new General Manager for the Hibbing Public Utilities, Jason Fisher, will start on December 1, 2008.

The October 2008 Monthly Injury Summary Report was reviewed. The Report shows one accident with no lost time during the October 2008 time period.

Mr. Leoni noted Department personnel are monitoring several areas to help determine what may be causing higher than normal steam production and sales figures to indicate unaccounted for losses on the steam distribution system. The Director of Distribution – Steam and Water will work with the Department’s steam model to evaluate areas for further examination.

After discussion it was moved by Lucarelli and supported by Raukar to approve the 2009 Department of Public Utilities Budget as presented. Motion carried. President Bloomquist noted the upcoming raise for the Director or Finance and Administration was included in this budget.

After review it was moved by Petroskey and supported by Lucarelli to approve the list of 2008 Customer Accounts presented for Write Off. Motion carried.

Moved by Petroskey and supported by Lucarelli to authorize the attendance of the Director of Operations – Gas & Electric and the Director of Finance & Administration at the Technical Operations Conference to be held in St. Cloud, Minnesota, on December 2-4, 2008. Motion carried.

Due to the upcoming Christmas Holidays the regular Commission meeting to be held in December 2008 will be held on Monday, December 8, 2008 at 4:30 p.m.

Mr. Leoni reported the first AFSCME Contract Negotiations meeting is set for 9 a.m. Wednesday, November 26, 2008.

The October 2008 Combined Operating Statement was reviewed.

Moved by Petroskey and supported by Lucarelli to adjourn the meeting. Motion Carried.

There being no further business to come before the Commission, Commission President Bloomquist declared the meeting adjourned at 5:05 p.m.

ATTEST: APPROVED:

____________________________ ____________________________

Matt Raukar, Secretary Quentin Bloomquist, President