A SPECIAL 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, JUNE 9, 2008, AT 4:30 P.M.

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

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

Absent: None

Also Present: Terry Leoni – General Manager; Bill Hafdahl – Director-Finance & Administration; Councilor Charlie Baribeau.

Visitors: Charles Ramsey, Mesabi Daily News

A special meeting was called to discuss an action taken by the Hibbing Public Utility Commission (HPUC) on Wednesday, June 4, 2008 wherein they discussed and acted upon a concept whereby Hibbing and Virginia might share a General Manager. This concept was to be the start of a public process to discuss the pros and cons of such an arrangement in light of former Hibbing General Manager, Jim Kochevar’s, recent leaving. The HPU had yet to replace Mr. Kochevar and HPUC Chairman Larry McGuire asked to meet with Virginia Public Utility Commission (VPUC) President, Quentin Bloomquist. Their meeting resulted in a concept being put forward whereby a new management structure would be discussed by both Commissions to determine its feasibility. The HPUC was already scheduled to meet on June 4^th and it was determined this would be the start of said discussions. Unexpectedly HPUC did more than discuss the concept; they voted to approve the concept on a 2 to 1 vote, contingent on the VPUC acting similarly.

VPUC’s special meeting discussion centered on President Bloomquist’s laying out the discussion that had taken place between he and HPUC Chairman McGuire and the decision to put forward the shared General Manager concept for discussion by both Commissions. President Bloomquist suggested that HPUC Chairman McGuire “jumped the gun” in asking for a vote, when a mere consensus would have been all that was required to continue a dialogue in determining the concept’s feasibility. Commissioner Lucarelli agreed a discussion would have been appropriate. When a Mesabi Daily News article appeared on June 5, 2008 it came as a surprise to him and made him feel HPUC was dictating terms to the VPUC. General Manager Leoni, who attended the HPUC meeting, interjected at that point that the newspaper article neglected to mention that the full motion made by the HPUC was contingent on VPUC acting similarly.

It was the consensus of the VPUC and City Council member Charlie Baribeau that VPU General Manager Leoni’s duties were already more than a forty (40) hour week and that there were other initiatives the VPU has and will be pursuing that will encumber more and more of Leoni’s time. President Bloomquist offered that both Leoni and Finance Director Hafdahl were already stretched thin and their involvement with other VPU initiatives would take more and more of their time. It was suggested that possibly another accounting/clerk position at the VPU would be warranted. Thereby, it was moved by Sipola and supported by Lucarelli to reject the concept of a shared General Manager and the related motion made by the Hibbing Public Utility Commission. By unanimous action the motion was approved.

Moved by Petrosky and supported by Lucarelli to adjourn the meeting. There being no further business to come before the Commission, Commission President Bloomquist declared the meeting adjourned at 4:50 p.m.

ATTEST: APPROVED:

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Matt Raukar, Secretary Quentin Bloomquist, President