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 28, 2005, AT 4:30 P.M.

Commissioner Sipola called the meeting to order at 4:35 p.m.

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

Absent: None.

Also Present: Terry Leoni, General Manager; Doug Ganoe – Director-Operations; Connie Larson – Director-HR/Safety; Bill Hafdahl – Director-Finance & Administration; City Councilors Rob Raplinger and Dennis Lindberg.

Commissioner Sipola asked if there were any comments from the audience. Councilor Lindberg asked how meter repairs are scheduled. The General Manager explained that the meter repair program focuses on certain neighborhoods at one time. Councilor Lindberg also questioned why repairs in the alley near his home were temporarily patched up. The Director-Operations explained that the final repair will be done in the spring. It was delayed because it needs extensive repair and there is no time to do it this year.

Moved by Park and supported by Raukar that financial Resolution No. 5068 authorizing the payroll dated November 23, 2005 in the amount of $91,775.85, checks #43887 through #43909 and direct deposits #8607 through #8658 and bills dated November 11, 2005 through November 25, 2005 in the amount of $213,071.65, checks #72701 through #72758, and wire and electronic transfers in the amount of $359,655.35 and the minutes of the regular meeting held on November 14, 2005 be approved as amended. Motion carried.

The General Manager gave an update on biomass activities over the past two weeks. Construction is in full swing. Weather has not been a factor yet. The only surprise so far is that the power plant roof, that was scheduled for repair and delayed due to the biomass project was worse than expected, was completely removed, due to safety concerns, under Phase I of the construction process. Hibbing Public Utilities is at a similar point in their construction process. The boiler parts are set to start arriving in mid-February. There will be approximately forty (40) truck loads of parts.

The General Manager gave an update on the Quad Cities Tennis building plans. The Utilities has been requested to consider in-kind services for the project. The estimate by the Engineering Department is that infrastructure installation would be approximately $18,000. The Tennis group has also requested assistance in funding insulation for the building in the amount of $33,000. There may be funds available through the Conservation Improvement Program (CIP) administered by the Minnesota Department of Commerce. The General Manager noted that this is a community project and the building will be owned by the City. There was no recommendation or action taken at this time due to the need for the Utility to confirm with the Commerce Department acceptance of using CIP funds for the insulation. Administration will keep the Commission updated. The General Manager noted that Mr. George Erickson and Mr. Bob Prittinen are willing to speak to the Commission regarding the project.

Carried forward

City of Virginia

Public Utilities Commission

Meeting Minutes

November 28, 2005

Brought forward

The General Manager reported on the Personnel/Finance Committee meeting that had been held earlier in the day. The preliminary 2006 budget was discussed along with several personnel issues. Moved by Raukar and supported by Park to accept the Separation Agreements with Mark Drobac and Steve Hilden and have the President of the Commission execute them and furthermore to change the position held by Tim Stellmach from temporary to full-time, motion carried. No further action was taken. The Committee will meet again on Monday, December 5, 2005 at 4:30 p.m. to further review the budget and consider additional personnel issues brought forth by Management.

The Commission reviewed the resignation letter from Dori Bergman, Supervisor-Accounting. Moved by Raukar and supported by Park to accept the resignation, send a letter of appreciation to Ms. Bergman, and to authorize the Department to start the replacement process. Motion carried. The Director-Finance & Administration reported that he may make some changes to the job responsibilities, but not to the educational requirements.

The financial reports presented were reviewed. The General Manager and Director-Finance & Administration noted that the unaccounted for numbers (specifically gas) will even out when the billing cycle catches up.

There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 5:10 p.m.

ATTEST: APPROVED:

__________________________ ___________________________

Matt Raukar, Interim Secretary Dr. Don Sipola, President