03-25-2020 HUCCP
HUTCHINSON UTILITIES COMMISSION
AGENDA
REGULAR MEETING
March 25, 2020
3:00 p.m.
1. CONFLICT OF INTEREST
2. APPROVE CONSENT AGENDA
a. Approve Minutes
b. Ratify Payment of Bills
3. APPROVE FINANCIAL STATEMENTS
4. OPEN FORUM
5. COMMUNICATION
a. City Administrator
b. Divisions
c. Human Resources
d. Legal
e. General Manager
6. POLICIES
a. Review Policies
i. Section 3 of Exempt Handbook
ii. Section 3 of Non-Exempt Handbook
b. Approve Changes
7. UNFINISHED BUSINESS
a. Follow-up discussion on the Hutchinson City Charter as it relates to the
composition of the Utilities Commission
8. NEW BUSINESS
a.
Agreement
b. Approve Requisition #8348 Sauer WP45L Air Compressor Package
c. Approve Amending the Advertisement for Bid on Plant #2 Grounding
Transformer
d. Approve Amending the Advertisement for Bid on Plant #2 25/46.7 MVA
Transformer
9. ADJOURN
MINUTES
Regular Meeting Hutchinson Utilities Commission
Wednesday, February 26, 2020
Call to order - 3:00 p.m.
President Don Martinez called the meeting to order. Members present: President Don
Martinez; Vice President Matt Cheney; Secretary Robert Wendorff; Commissioner
Monty Morrow; Commissioner Anthony Hanson; GM Jeremy Carter; Attorney Marc
Sebora
1. Conflict of Interest
No conflicts were declared.
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Morrow, second by Commissioner Cheney to approve
Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
Mr. Martig presented the Financial statements. He noted the TransAlta contract was
complete at the end of 2019. Other revenues in electric are projects billed to the
City, mostly street lighting. The Natural Gas side figures were somewhat less than
last year due to a decrease in heating days. MRES, Great River and MISO data
was also provided to the Commission.
Mr. Carter noted consumption was down in both the Electric and Natural Gas
operations from one year ago.
Motion by Commissioner Hanson, second by Commissioner Wendorff to approve
the financial statements. Motion carried unanimously.
4. Open Forum
5. Communication
a. City Administrator Matt Jaunich was absent.
b. Divisions
i. Dan Lang Nothing to report
ii. Dave Hunstad will be reporting on future agenda items.
iii. Randy Blake There was a surprise audit by MPCA on Plant #1. MPCA
reported they were happy with what they found, particularly recordkeeping
documentation.
A representative from the National Museum of Industrial History will be
stopping in next month to gather information about our older equipment.
Tracking down parts for the Worthington engine.
c. John Webster Nothing to report
d. Jared Martig Nothing to report
e. Human Resources Nothing to report
f. Legal Nothing to report
g. General Manager HUC is soliciting firms for community survey. The
Commission can relay areas of questioning to him if they so desire. He will be
attending the MMUA leadership training next Wednesday & Thursday. Meeting
with City staff & EDA on projects and to discuss potential for solar projects, both
ground and roof mounts. HUC has talked with three solar developers on the
scope and price of projects. Mr. Carter noted he sent out the State and Federal
legislative topics to the Commission for review. He also provided the 5-year
budget projections and wholesale modeling information to the Commission.
6. Policies
a. Review Policies
i. Section 2 of Exempt Handbook
ii. Section 2 of Non-Exempt Handbook
No changes recommended at this time.
b. Approve Changes
i. Definitions Exempt & Non-Exempt These are proposed basic language
corrections. The HR Manager job title will be stricken from the policy as the
position no longer exists. Changing the term Probationary Period to rial
Period for existing employees appointed to a new HUC position. This language
change was made in the IBEW current contract and the change has now been
made to both the exempt & non-exempt policies.
ii. Violence In The Workplace Exempt & Non-Exempt
iii. Promotions And Transfers Exempt & Non-Exempt
iv. Flowers - Exempt & Non-Exempt This is a change to the definition of
immediate family and citing a reference to the new definition in the policy
language.
Motion by Commissioner Hanson, second by Commissioner Morrow to approve
the policy changes as presented. Motion carried unanimously.
7. Unfinished Business
8. New Business
a. Approve Requisition #8310 2020 Chevy Bolt EV
Dave Hunstad noted this vehicle will replace the Chevy Tahoe that is used by
Administration and management. The Chevy Bolt is the only electric vehicle on
the State contract. The Volt meets the criteria needed and has been purchased
by other municipalities/utilities. HUC has budgeted $40,000 for the purchase.
Motion by Commissioner Wendorff, second by Commissioner Cheney to
approve Requisition #8310 for the 2020 Chevy Bolt EV purchase. The motion
carried unanimously.
b. Approve Requisition #8318 ChargePoint DC Fast Charging Station
Dave Hunstad spoke about the charging station for electric vehicles. This will
be a public charging station and HUC is working with the City to place it in an
appropriate location. The probable location is by Girl Scout /Gateway Park.
The DC fast charger is a 62kw charger which is a fast charger (1/2 1 hour for
full charge). The ChargePoint charger is on the State bid. HUC also has the
ChargePoint in home charger on the HUC customer rebate list. The
Commission asked how long it will take for delivery. A few weeks, but
installation must wait until the first segment of the Hwy 15/Main St. project is
complete. Commissioner Wendorff asked if more than one vehicle can be
charged at a time and Dave confirmed this is a dual charger. Commissioner
Morrow asked if the HUC vehicle will have an in-house charger. Dave noted
this will be in-house and a level 2 charger. Staff will be coming back to the
Commission to set pricing/fees for use of the charger.
Motion by Commissioner Cheney, second by Commissioner Hanson to approve
Requisition #8318. The motion carried unanimously.
c. Review 2019 Annual Distributed Generation
Dave Hunstad provided the distributed generation resources annual report
information. The report tracks the power from the solar systems that is delivered
to the customer, what is sold back to HUC, and what is the net charge/credit for
the customer. HUC is expecting two additional systems coming on line for 2020.
Commissioner Hanson inquired if the current solar systems are residential.
Hunstad noted one is residential and one is commercial. Commissioner Hanson
also asked about the two new systems, and Hunstad noted they will be rooftop
commercial systems.
d. Approve Advertisement for Bids on Plant #2 Grounding Transformer
Jeremy Carter explained the transformers at Plant 2 need replacement. The
bids are the first step required in this process. When bids are opened and
reviewed for accuracy and adherence to the bid specs, the recommendation
from staff on the preferred bid will be brought to the Commission for
consideration. There is a 6-9 month lead time for the transformer replacement.
Staff is comfortable with the company HUC is using for the bid spec process. It
is a firm HUC has worked with, previously and for some time. Legal has
reviewed the documents, as well.
Commissioner Martinez inquired on the progress of the existing transformer
insurance claim. Mr. Carter relayed that the insurance claim is still being
processed for the existing damaged transformer. Staff continues working with
XL Energy and Gallagher/LMCIT on the claim. The root cause of the damage is
yet to be officially determined. There will be a deductible amount that HUC will
need to pay.
Motion by Commissioner Hanson, second by Commissioner Morrow to approve
the Advertisement for Bids for the Plant #2 Grounding Transformer. Motion
carried unanimously.
e. Approve Advertisement for Bids on Plant #2 25/46.7 MVA Transformer
This is the main transformer in the replacement project.
Motion by Commissioner Cheney, second by Commissioner Wendorff to
approve the Advertisement for Bids for Plant #2 25/46.7 MVA Transformer.
Motion carried unanimously.
f. Set a Special Meeting March 25, 2020 3:30pm Plant Tour
Motion by Hanson, second by Wendorff to set a special meeting on March 25,
2020, to immediately follow the regularly scheduled Commission meeting for a
Plant Tour.
The motion carried unanimously.
9. Adjourn
Motion by Morrow, second by Cheney to adjourn the meeting at 3:32 p.m.
Motion carried unanimously.
ΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗ
Robert Wendorff, Secretary
ATTEST: _________________________
Don Martinez, President
HUTCHINSON UTILITIES COMMISSION
COMBINED DIVISIONS
FINANCIAL REPORT FOR FEBRUARY, 2020
February, 2020 MonthYear to Date 16.67% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Combined Division
Customer Revenue$ 3,171,767 $ 3,515,289 $ (343,522)(9.8%)$ 6,651,840$ 7,407,534$ (755,694)(10.2%)$ 35,819,11618.6%
Sales for Resale$ 149,923$ 218,647$ (68,724) (31.4%)$ 301,544$ 450,730$ (149,186)(33.1%)$ 3,007,25010.0%
NU Transportation$ 82,243$ 82,339$ (96)(0.1%)$ 165,422$ 164,814$ 6070.4%$ 898,64018.4%
Electric Division Transfer$ 55,440$ 54,982$ 4580.8%$ 110,881$ 109,964$ 9170.8%$ 665,28316.7%
Other Revenues$ 40,682$ 48,728$ (8,045)(16.5%)$ 176,099$ 93,044$ 83,05589.3%$ 466,20737.8%
Interest Income$ 55,221$ 33,232$ 21,98966.2%$ 112,262$ 74,919$ 37,34249.8%$ 383,45629.3%
TOTAL REVENUES$ 3,555,276 $ 3,953,217 $ (397,940)(10.1%)$ 7,518,047$ 8,301,004$ (782,957)(9.4%)$ 41,239,95218.2%
Salaries & Benefits$ 496,380$ 512,853$ (16,473) (3.21%)$ 1,107,746$ 1,090,135$ 17,6111.6%$ 6,946,88015.9%
Purchased Commodities$ 1,813,025 $ 2,087,180 $ (274,155)(13.1%)$ 3,813,181$ 4,462,762$ (649,581)(14.6%)$ 19,252,47719.8%
Transmission$ 123,640$ 151,863$ (28,223) (18.6%)$ 326,608$ 336,097$ (9,489)(2.8%)$ 2,680,00012.2%
Generator Fuel/Chem.$ 9,535$ 28,213$ (18,677) (66.2%)$ 15,601$ 35,907$ (20,307)(56.6%)$ 825,8751.9%
Depreciation$ 327,083$ 327,083$ -0.0%$ 654,167$ 654,167$ -0.0%$ 3,925,00016.7%
Transfers (Elect./City)$ 211,040$ 188,434$ 22,60612.0%$ 422,079$ 376,868$ 45,21112.0%$ 2,532,47516.7%
Operating Expense$ 121,963$ 147,945$ (25,983) (17.6%)$ 362,649$ 389,656$ (27,007)(6.9%)$ 2,605,31313.9%
Debt Interest$ 89,542$ 97,334$ (7,792)(8.0%)$ 179,084$ 194,668$ (15,583)(8.0%)$ 1,074,50716.7%
TOTAL EXPENSES$ 3,192,207 $ 3,540,905 $ (348,698)(9.8%)$ 6,881,115$ 7,540,260$ (659,145)(8.7%)$ 39,842,52717.3%
NET PROFIT/(LOSS)$ 363,069$ 412,312$ (49,242) (11.9%)$ 636,932$ 760,744$ (123,812)(16.3%)$ 1,397,42545.6%
Combined Divisions - Financial/Operating Ratios
FebruaryFebruaryYTD YTD 2020HUC
20202019Change20202019ChangeBudgetTarget
Gross Margin %35.8%33.1%2.7%34.1%33.7%0.4%34.6%26% - 28%
Operating Income Per Revenue $ (%)10.8%11.6%-0.8%7.8%10.2%-2.3%4.6%1%-4%
Net Income Per Revenue $ (%):10.2%10.4%-0.2%8.5%9.2%-0.7%3.4%0%-1%
Notes/Graphs:
HUTCHINSON UTILITIES COMMISSION
ELECTRIC DIVISION
FINANCIAL REPORT FOR FEBRUARY, 2020
February, 2020 MonthYear to Date 16.67% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Electric Division
Customer Revenue$ 1,858,944$ 2,015,612$ (156,667)(7.8%)$ 3,889,324$ 4,148,175$ (258,851) (6.2%)$ 25,627,44815.2%
Sales for Resale$ 149,923$ 218,647 $ (68,724)(31.4%)$ 301,544$ 450,730$ (149,186) (33.1%)$ 3,007,25010.0%
Other Revenues$ 36,290$ 19,784$ 16,50683.4%$ 147,732$ 40,412$ 107,320265.6%$ 179,49982.3%
Interest Income$ 29,005$ 18,010$ 10,99561.0%$ 58,919 $ 40,630$ 18,28945.0%$ 208,45628.3%
TOTAL REVENUES$ 2,074,162$ 2,272,052$ (197,891)(8.7%)$ 4,397,519$ 4,679,946$ (282,427) (6.0%)$ 29,022,65315.2%
Salaries & Benefits$ 371,941$ 382,013 $ (10,071)(2.6%)$ 824,320$ 810,916$ 13,4051.7%$ 5,074,75916.2%
Purchased Power$ 1,061,602$ 1,239,711$ (178,109)(14.4%)$ 2,221,164$ 2,542,448$ (321,283) (12.6%)$ 13,480,33216.5%
Transmission$ 123,640$ 151,863 $ (28,223)(18.6%)$ 326,608$ 336,097$ (9,489)(2.8%)$ 2,680,00012.2%
Generator Fuel/Chem.$ 9,535 $ 28,213$ (18,677)(66.2%)$ 15,601 $ 35,907$ (20,307) (56.6%)$ 825,8751.9%
Depreciation$ 241,667$ 241,667 $ -0.0%$ 483,333$ 483,333$ -0.0%$ 2,900,00016.7%
Transfers (Elect./City)$ 163,236$ 147,172 $ 16,06410.9%$ 326,471$ 294,344$ 32,12710.9%$ 1,958,82616.7%
Operating Expense$ 63,541$ 86,663$ (23,123)(26.7%)$ 235,230$ 254,537$ (19,306) (7.6%)$ 1,654,94314.2%
Debt Interest$ 44,471$ 46,555$ (2,083) (4.5%)$ 88,943 $ 93,109$ (4,167)(4.5%)$ 533,65716.7%
TOTAL EXPENSES$ 2,079,632$ 2,323,856$ (244,223)(10.5%)$ 4,521,671$ 4,850,690$ (329,020) (6.8%)$ 29,108,39215.5%
NET PROFIT/(LOSS)$ (5,471)$ (51,804) $ 46,333(89.4%)$ (124,152)$ (170,745)$ 46,592(27.3%)$ (85,739)144.8%
February, 2020 MonthYear to Date 16.67% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Electric Division
Residential3,880,5614,036,996 (156,435)(3.88%)8,224,5868,489,205 (264,619) (3.12%) 51,590,88915.9%
All Electric309,606351,778 (42,172) (11.99%)662,128740,307 (78,179) (10.56%) 2,545,49726.0%
Small General1,553,2031,589,290 (36,087) (2.27%)3,222,1583,325,967 (103,809) (3.12%) 18,956,24817.0%
Large General5,993,6206,396,720 (403,100)(6.30%)12,194,16013,169,380 (975,220) (7.41%) 79,933,58315.3%
Industrial8,774,0008,913,000 (139,000)(1.56%)18,505,00018,569,000 (64,000) (0.34%) 129,279,66614.3%
Total KWH Sold 20,510,990 21,287,784 (776,794)(3.65%) 42,808,032 44,293,859 (1,485,827)(3.35%) 282,305,88315.2%
Financial/Operating Ratios
FebruaryFebruaryYTD YTD 2020HUC
20202019Change20202019ChangeBudgetTarget
Gross Margin %27.8%22.7%5.1%25.1%25.1%0.0%28.7%24% - 28%
Operating Income Per Revenue $ (%)-0.6%-1.1%0.5%-5.0%-2.7%-2.3%0.8%0%-5%
Net Income Per Revenue $ (%):-0.3%-2.3%2.0%-2.8%-3.6%0.8%-0.3%0%-5%
Customer Revenue per KWH:$0.0906$0.0947-$0.0041$0.0909$0.0937-$0.0028$0.0903$0.0903
Total Power Supply Exp. per KWH:$0.0712$0.0817-$0.0105$0.0739$0.0783-$0.0045$0.0728$0.0728
Notes/Graphs:
Net Loss decreased by $46,333 despite less revenues mostly due to lower purchased power and every other expense except for PILOT. There was $104,886 less
revenue collected from the PCA in 2020.
Sales for Resale of $149,923 consisted of $423 in market sales, $136,000 in capacity sales to SMMPA and $13,500 in capacity sales to AEP. February 2019 Sales for
Resale of $218,647 consisted of $12,429 in market sales, $36,400 in monthly tolling fees from Transalta, $53,818 in Transalta energy sales, and $116,000 in capacity
sales to SMMPA. February 2018 Sales for Resale of $173,427 consisted of $7,210 in market sales, $35,600 in Transalta tolling fees, $34,617 in Transalta energy sales,
and $96,000 SMMPA capacity sales.
Overall Purchased Power decreased by $178,109. MRES purchases increased by $20,621 due to leap day and market purchases/MISO costs decreased by $198,730.
February power cost adjustment was $.00478/kwhr bringing in an additional $98,297 in revenue for the month and $249,141 YTD.
Last year's power cost adjustment for February 2019 generated $203,183 in additional revenue for the month and $403,676 YTD.
HUTCHINSON UTILITIES COMMISSION
GAS DIVISION
FINANCIAL REPORT FOR FEBRUARY, 2020
February, 2020 MonthYear to Date 16.67% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Gas Division
Customer Revenue$ 1,312,822$ 1,499,678$ (186,855)(12.5%)$ 2,762,516 $ 3,259,359$ (496,843)(15.2%)$ 10,191,66827.1%
Transportation$ 82,243$ 82,339 $ (96)(0.1%)$ 165,422$ 164,814 $ 6070.4%$ 898,640 18.4%
Electric Div. Transfer$ 55,440$ 54,982 $ 4580.8%$ 110,881$ 109,964 $ 9170.8%$ 665,283 16.7%
Other Revenues$ 4,392$ 28,944 $ (24,552) (84.8%)$ 28,367$ 52,632$ (24,265)(46.1%)$ 286,708 9.9%
Interest Income$ 26,216$ 15,222 $ 10,99572.2%$ 53,343$ 34,289$ 19,054 55.6%$ 175,000 30.5%
TOTAL REVENUES$ 1,481,115$ 1,681,165$ (200,050)(11.9%)$ 3,120,528 $ 3,621,058$ (500,530)(13.8%)$ 12,217,29925.5%
Salaries & Benefits$ 124,439$ 130,840$ (6,402)(4.9%)$ 283,426$ 279,219 $ 4,2061.5%$ 1,872,12115.1%
Purchased Gas$ 751,423$ 847,469$ (96,046) (11.3%)$ 1,592,017 $ 1,920,315$ (328,298)(17.1%)$ 5,772,14527.6%
Operating Expense$ 58,422$ 61,282 $ (2,860)(4.7%)$ 127,419$ 135,119 $ (7,701)(5.7%)$ 950,370 13.4%
Depreciation$ 85,417$ 85,417 $ -0.0%$ 170,833$ 170,833 $ -0.0%$ 1,025,00016.7%
Transfers (City)$ 47,804$ 41,262 $ 6,54215.9%$ 95,608$ 82,524$ 13,084 15.9%$ 573,649 16.7%
Debt Interest$ 45,071$ 50,779 $ (5,708)0.0%$ 90,142$ 101,558 $ (11,417)(11.2%)$ 540,850 16.7%
TOTAL EXPENSES$ 1,112,575$ 1,217,049$ (104,475)(8.6%)$ 2,359,444 $ 2,689,569$ (330,125)(12.3%)$ 10,734,13522.0%
NET PROFIT/(LOSS)$ 368,540$ 464,115$ (95,575) (20.6%)$ 761,084$ 931,489 $ (170,405)(18.3%)$ 1,483,16451.3%
February, 2020 MonthYear to Date 16.67% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Gas Division
Residential67,468,89578,788,948 (11,320,053)(14.37%)143,314,259165,440,853 (22,126,594)(13.37%) 422,479,00033.9%
Commercial50,686,20157,281,947 (6,595,746)(11.51%)106,022,592116,876,245 (10,853,653)(9.29%) 331,731,00032.0%
Industrial99,645,216101,688,541 (2,043,325)(2.01%)204,070,477209,433,589 (5,363,112)(2.56%) 803,079,00025.4%
Total CF Sold 217,800,312 237,759,436 (19,959,124)(8.39%) 453,407,328 491,750,687 (38,343,359)(7.80%) 1,557,289,00029.1%
Financial/Operating Ratios
FebruaryFebruaryYTD YTD 2020HUC
20202019Change20202019ChangeBudgetTarget
Gross Margin %46.9%47.2%-0.4%46.6%45.0%1.6%49.0%37%-42%
Operating Income Per Revenue $ (%)26.7%29.1%-2.4%25.6%27.0%-1.4%13.8%11%-16%
Net Income Per Revenue $ (%):25.4%28.4%-2.9%25.0%26.4%-1.3%12.6%6%-11%
Contracted Customer Rev. per CF:$0.0037$0.0041-$0.0005$0.0037$0.0044-$0.0006$0.0040$0.0040
Customer Revenue per CF:$0.0079$0.0078$0.0001$0.0079$0.0082-$0.0003$0.0089$0.0089
Total Power Supply Exp. per CF:$0.0036$0.0036($0.0001)$0.0036$0.0040($0.0004)$0.0039$0.0039
Notes/Graphs:
Gas usage was down from the prior year due to a warmer February compared to 2019. The decrease in usage led to a drop of $95,575 in Net Profit.
Heating degree days were down around 13% again this month compared to 2019 despite an extra day for leap year.
February's fuel cost credit adjustment was $1.22029/MCF totalling $149,182 for the month and $298,615.90 YTD.
February 2019 credits totalled $197,578 for the month and $292,574 YTD.
HUTCHINSONUTILITIESCOMMISSION
BALANCESHEET-CONSOLIDATED
FEBRUARY 29, 2020
ElectricGasTotalTotal Net Change
DivisionDivision20202019Total(YTD)
Current Assets
Cash 6,300,356.84 10,161,793.29 16,462,150.13 17,687,214.10 (1,225,063.97)
Petty Cash 680.00 170.00 850.00 850.00 -
Capital Expenditures - Five Yr. CIP 2,750,000.00 700,000.00 3,450,000.00 3,450,000.00 -
Payment in Lieu of Taxes 1,293,543.00 573,649.00 1,867,192.00 1,601,424.00 265,768.00
Rate Stabilization - Electric 372,736.68 - 372,736.68 372,736.68 -
Rate Stabilization - Gas - 651,306.61 651,306.61 651,306.61 -
Catastrophic Funds 400,000.00 100,000.00 500,000.00 500,000.00 -
Bond Interest Payment 2017 794,664.05 - 794,664.05 795,914.00 (1,249.95)
Bond Interest Payment 2012 - 498,962.48 498,962.48 493,079.16 5,883.32
Debt Service Reserve Funds 522,335.64 2,188,694.02 2,711,029.66 2,711,029.66 -
Total Current Assets 12,434,316.21 1 4,874,575.40 27,308,891.61 2 8,263,554.21 (954,662.60)
Receivables
Accounts (net of uncollectible allowances) 1,845,660.18 1,527,128.70 3,372,788.88 3,850,997.10 (478,208.22)
Interest 57,982.32 57,982.32 115,964.64 47,264.58 68,700.06
Total Receivables 1,903,642.50 1 ,585,111.02 3,488,753.52 3 ,898,261.68 (409,508.16)
Other Assets
1,452,096.55 456,583.78 1,649,768.26
Inventory 1,908,680.33 258,912.07
217,853.33 29,825.63 72,421.55
Prepaid Expenses 247,678.96 175,257.41
93,371.85 -
Sales Tax Receivable 93,371.85 34,238.30 59,133.55
Deferred Outflows - Electric 494,053.00 -
494,053.00 494,053.00 -
Deferred Outflows - Gas - 164,685.00
164,685.00 164,685.00 -
2,257,374.73 6 51,094.41 2,908,469.14 2 ,415,166.11 493,303.03
Total Other Assets
Total Current Assets 16,595,333.44 1 7,110,780.83 33,706,114.27 3 4,576,982.00 (870,867.73)
Capital Assets
Land & Land Rights 690,368.40 3,899,918.60 4,590,287.00 4,590,287.00 -
Depreciable Capital Assets 90,203,475.97 41,684,214.28 131,887,690.25 131,888,156.70 (466.45)
Accumulated Depreciation (58,554,717.56) (17,282,239.52) (75,836,957.08) (71,911,957.08) (3,925,000.00)
Construction - Work in Progress 17,194,851.11 524,357.05 17,719,208.16 13,465,799.95 4,253,408.21
Total Net Capital Assets 49,533,977.92 2 8,826,250.41 78,360,228.33 7 8,032,286.57 327,941.76
Total Assets 6 6,129,311.36 4 5,937,031.24 1 12,066,342.60 1 12,609,268.57 ( 542,925.97)
HUTCHINSONUTILITIESCOMMISSION
BALANCESHEET-CONSOLIDATED
FEBRUARY 29, 2020
ElectricGasTotalTotal Net Change
DivisionDivision20202019Total(YTD)
Current Liabilities
Current Portion of Long-term Debt
Bonds Payable 645,000.00 1,455,000.00 2,100,000.00 1,995,000.00 105,000.00
Bond Premium - 185,608.32 185,608.32 185,608.32 -
Accounts Payable 2,014,860.59 1,140,215.14 3,155,075.73 3,623,221.45 (468,145.72)
Accrued Expenses
Accrued Interest 133,414.05 135,212.48 268,626.53 292,001.55 (23,375.02)
Accrued Payroll 89,257.12 30,789.52 120,046.64 102,037.07 18,009.57
Total Current Liabilities 2,882,531.76 2 ,946,825.46 5,829,357.22 6 ,197,868.39 (368,511.17)
Long-Term Liabilities
Noncurrent Portion of Long-term Debt
2017 Bonds 15,405,000.00 - 15,405,000.00 16,050,000.00 (645,000.00)
2012 Bonds - 11,075,000.00 11,075,000.00 12,530,000.00 (1,455,000.00)
Bond Premium 2012 593,861.04 1,067,247.47 1,661,108.51 1,880,173.79 (219,065.28)
Pension Liability - Electric 2,700,290.00 - 2,700,290.00 2,700,290.00 -
Pension Liability - Electric OPEB 72,192.00 - 72,192.00 72,192.00 -
Pension Liability - Nat Gas - 900,097.00 900,097.00 900,097.00 -
Pension Liability - Nat Gas OPEB - 24,064.00 24,064.00 24,064.00 -
Accrued Vacation Payable 380,134.01 146,202.28 526,336.29 477,451.52 48,884.77
Accrued Severance 81,360.39 33,739.79 115,100.18 106,630.34 8,469.84
Deferred Outflows - Electric 804,800.00 - 804,800.00 804,800.00 -
Deferred Outflows - Nat Gas - 268,267.00 268,267.00 268,267.00 -
Total Long-Term Liabilities 20,037,637.44 1 3,514,617.54 33,552,254.98 3 5,813,965.65 (2,261,710.67)
Net Position
Retained Earnings 43,209,142.16 29,475,588.24 72,684,730.40 70,597,434.53 2,087,295.87
Total Net Position 43,209,142.16 2 9,475,588.24 72,684,730.40 7 0,597,434.53 2,087,295.87
Total Liabilities and Net Position 66,129,311.36 4 5,937,031.24 112,066,342.60 1 12,609,268.57 (542,925.97)
Hutchinson Utilities Commission
Cash-Designations Report, Combined
2/29/2020
Change in
Financial Annual Balance, Balance, Cash/Reserve
InstitutionCurrent Interest RateInterestFebruary 2020 January 2020 Position
Savings, Checking, Investmentsvariesvariesvaries 27,308,891.61 26,552,066.14 756,825.47
Total Operating Funds 27,308,891.61 26,552,066.14 756,825.47
Combined Division - Total Funds 27,308,891.61 26,552,066.14 756,825.47
Restricted Funds:
Debt Reserve RequirementsBond Covenants - sinking fund 1,293,626.53 1,029,084.33 264,542.20
Debt Reserve RequirementsBond Covenants -1 year Max. P & I 2,711,029.66 2,711,029.66 -
Total Restricted Funds 4,004,656.19 3,740,113.99 264,542.20
Excess Reserves Less Restrictions, Combined 23,304,235.42 22,811,952.15 492,283.27
Designated Funds:
Operating ReserveMin 60 days of 2020 Operating Bud. 5,981,005.00 5,981,005.00 -
Rate Stabalization Funds 1,024,043.29 1,024,043.29 -
PILOT FundsCharter (Formula Only) 1,867,192.00 1,867,192.00 -
Catastrophic FundsRisk Mitigation Amount 500,000.00 500,000.00 -
Capital Reserves5 Year CIP ( 2020-2024 Fleet & Infrastructure Maintenance) 3,450,000.00 3,450,000.00 -
Total Designated Funds 12,822,240.29 12,822,240.29 -
Excess Reserves Less Restrictions & Designations, Combined 10,481,995.13 9,989,711.86 492,283.27
Financial/Operating Ratios
YEYEYEYEYTDHUC
20162017201820192020Target
Debt to Asset32.2%40.2%37.7%35.1%35.1%<50%
Current Ratio3.063.363.935.194.98>2.0
RONA2.17%1.82%3.43%2.26%0.63%>0%
Notes/Graphs:
Change in Cash Balance (From 12/31/14 to 2/29/2020)
Month End ElectricElec. ChangeNatural GasGas Change TotalTotal Change
2/29/2020 12,434,316 14,874,575 27,308,892
12/31/2019 12,124,142 310,175 13,837,040 1,037,536 25,961,181 1,347,710
12/31/2018 15,559,867 (3,435,725) 12,335,998 1,501,042 27,895,864 (1,934,683)
12/31/2017 23,213,245 (7,653,378) 10,702,689 1,633,309 33,915,934 (6,020,070)
12/31/2016 8,612,801 14,600,444 9,500,074 1,202,615 18,112,875 15,803,059
12/31/2015 6,170,790 2,442,011 9,037,373 462,701 15,208,163 2,904,712
12/31/2014 3,598,821 2,571,969 6,765,165 2,272,208 10,363,986 4,844,177
* 2017's Signifcant increase in cash balance is due to issuing bonds for the generator project.
Hutchinson Utilities Commission
Cash-Designations Report, Electric
2/29/2020
Change in
Financial Annual Balance, Balance, Cash/Reserve
InstitutionInterestFebruary 2020 January 2020 Position
Current Interest Rate
Operating Funds:
Savings, Checking, Investmentsvariesvariesvaries 27,308,891.61 26,552,066.14 756,825.47
Total HUC Operating Funds 27,308,891.61 26,552,066.14 756,825.47
Electric Division - Total Funds 12,434,316.21 12,228,313.00 206,003.21
Restricted Funds:
Debt Restricted RequirementsBond Covenants - sinking fund 794,664.05 696,442.69 98,221.36
Debt Restricted RequirementsBond Covenants -1 year Max. P & I 522,335.64 522,335.64 -
Total Restricted Funds 1,316,999.69 1,218,778.33 98,221.36
Excess Reserves Less Restrictions, Electric 11,117,316.52 11,009,534.67 107,781.85
Designated Funds:
Operating ReserveMin 60 days of 2020 Operating Bud. 4,367,899.00 4,367,899.00 -
Rate Stabalization Funds$400K-$1.2K 372,736.68 372,736.68 -
PILOT FundsCharter (Formula Only) 1,293,543.00 1,293,543.00 -
Catastrophic FundsRisk Mitigation Amount 400,000.00 400,000.00 -
Capital Reserves5 Year CIP ( 2020-2024 Fleet & Infrastructure Maintenance) 2,750,000.00 2,750,000.00 -
Total Designated Funds 9,184,178.68 9,184,178.68 -
Excess Reserves Less Restrictions & Designations, Electric 1,933,137.84 1,825,355.99 107,781.85
Financial/Operating Ratios
YEYEYEYEYTDAPPA RatioHUC
201620172018201920205K-10K Cust.Target
Debt to Asset Ratio (* w/Gen.)16.7%35.4%35.7%34.4%34.7%50.1%<50%
Current Ratio3.574.363.635.415.132.43>2.0
RONA-0.4%-0.6%-0.3%-0.5%-0.2%NA>0%
Notes/Graphs:
Hutchinson Utilities Commission
Cash-Designations Report, Gas
2/29/2020
Change in
Financial Annual Balance, Balance, Cash/Reserve
InstitutionCurrent Interest RateInterestFebruary 2020 January 2020 Position
Operating Funds:
Savings, Checking, Investmentsvariesvariesvaries27,308,891.6126,552,066.14756,825.47
Total HUC Operating Funds 27,308,891.61 26,552,066.14 756,825.47
Gas Division - Total Funds 14,874,575.40 14,323,753.14 550,822.26
Restricted Funds:
Debt Restricted RequirementsBond Covenants - sinking fund 498,962.48 332,641.64 166,320.84
Debt Restricted RequirementsBond Covenants -1 year Max. P & I 2,188,694.02 2,188,694.02 -
Total Restricted Funds 2,687,656.50 2,521,335.66 166,320.84
Excess Reserves Less Restrictions, Gas 12,186,918.90 11,802,417.48 384,501.42
Designated Funds:
Operating ReserveMin 60 days of 2020 Operating Bud. 1,613,106.00 1,613,106.00 -
Rate Stabalization Funds$200K-$600K 651,306.61 651,306.61 -
PILOT FundsCharter (Formula Only) 573,649.00 573,649.00 -
Catastrophic FundsRisk Mitigation Amount 100,000.00 100,000.00 -
Capital Reserves5 Year CIP ( 2020-2024 Fleet & Infrastructure Maintenance) 700,000.00 700,000.00 -
Total Designated Funds 3,638,061.61 3,638,061.61 -
Excess Reserves Less Restrictions & Designations, Gas 8,548,857.29 8,164,355.87 384,501.42
Financial/Operating Ratios
YEYEYEYEYTDHUC
20162017201820192020APGA RatioTarget
Debt to Asset51.2%47.6%40.7%36.2%35.8%TBD<50%
Current Ratio2.592.744.334.984.84TBD>2.0
RONA5.6%5.0%8.3%6.6%1.9%TBD>0%
Notes/Graphs:
HUTCHINSON UTILITIES COMMISSION
Investment Report
For the Month Ended February 29, 2020
InterestCurrentDate ofDate ofParCurrentPurchaseUnrealizedPremiumNext
InstitutionDescriptionRateYTMPurchaseMaturityValueValueAmountGain/(Loss)(Discount)Call Date
Wells FargoMoney Market0.840%0.840%NANA - 56,999.84 - - -N/A
Wells FargoCD's1.700%1.700%02/21/202002/22/2022 245,000.00 246,195.60 245,000.00 1,195.60 -N/A
Wells FargoCD's2.450%2.450%03/27/201903/27/2020 245,000.00 245,169.05 245,000.00 169.05 -N/A
Wells FargoCD's1.900%1.900%08/21/201908/23/2021 174,000.00 175,150.14 174,000.00 1,150.14 -N/A
Wells FargoCD's2.500%2.500%04/02/201904/05/2021 245,000.00 247,800.35 245,000.00 2,800.35 -N/A
Wells FargoCD's2.000%2.000%04/07/201610/07/2021 245,000.00 245,083.30 245,000.00 83.30 -04/07/2020
Wells FargoCD's2.000%2.000%10/07/201912/31/2020 245,000.00 245,112.70 245,000.00 112.70 -04/07/2020
Wells FargoCD's2.000%2.000%01/30/202001/30/2024 245,000.00 245,521.85 245,000.00 521.85 -07/30/2020
Wells FargoCD's2.000%2.000%08/29/202008/22/2022 200,000.00 200,000.00 200,000.00 - -03/29/2020
Wells FargoCD's1.700%1.700%12/30/201907/08/2020 60,000.00 60,042.60 60,000.00 42.60 -N/A
Wells FargoCD's2.000%2.000%01/10/202001/24/2025 245,000.00 245,127.40 245,000.00 127.40 -04/10/2020
Wells FargoCD's2.100%2.100%01/30/202007/30/2024 245,000.00 245,673.75 245,000.00 673.75 -07/30/2020
Wells FargoCD's2.000%2.000%01/29/202001/29/2024 245,000.00 245,490.00 245,000.00 490.00 -07/29/2020
Wells FargoCD's1.700%1.700%01/31/202005/03/2021 245,000.00 245,712.95 245,000.00 712.95 -N/A
Wells FargoCD's1.750%1.750%01/29/202007/29/2021 245,000.00 246,031.45 245,000.00 1,031.45 -N/A
Broker Total25.1% 3,129,000.00 3,195,110.98 3,129,000.00 9,111.14 -
Cetera Investment ServicesMoney Market0.030%0.030%N/AN/A - 39,968.26 - - -N/A
Cetera Investment ServicesMunicipal Bonds2.995%2.073%03/07/201607/01/2020 250,000.00 251,407.50 260,835.21 (9,427.71) 10,835.21N/A
Cetera Investment ServicesMunicipal Bonds2.750%1.881%03/07/201608/01/2020 250,000.00 251,325.00 259,820.00 (8,495.00) 9,820.00N/A
Cetera Investment ServicesMunicipal Bonds2.300%1.715%12/11/201710/01/2020 100,000.00 100,579.00 101,595.00 (1,016.00) 1,595.00N/A
Cetera Investment ServicesMunicipal Bonds2.875%2.121%04/29/201609/01/2021 250,000.00 255,902.50 259,467.50 (3,565.00) 9,467.50N/A
Cetera Investment ServicesMunicipal Bonds3.751%2.399%04/29/201611/01/2021 250,000.00 258,080.00 267,330.00 (9,250.00) 17,330.00N/A
Cetera Investment ServicesMunicipal Bonds3.139%2.190%12/11/201709/01/2021 300,000.00 307,893.00 310,116.00 (2,223.00) 10,116.00N/A
Cetera Investment ServicesMunicipal Bonds3.436%3.436%12/20/201812/15/2021 50,000.00 48,554.50 45,155.00 3,399.50 (4,845.00) N/A
Cetera Investment ServicesMunicipal Bonds2.655%2.208%12/11/201703/01/2022 300,000.00 308,736.00 305,314.92 3,421.08 5,314.92N/A
Cetera Investment ServicesMunicipal Bonds3.000%3.118%12/20/201808/01/2022 50,000.00 51,964.50 50,377.67 1,586.83 377.67N/A
Cetera Investment ServicesMunicipal Bonds3.633%3.116%12/20/201809/01/2022 250,000.00 263,225.00 257,217.48 6,007.52 7,217.48N/A
Cetera Investment ServicesMunicipal Bonds3.240%3.240%11/17/201702/15/2023 80,000.00 76,741.60 69,633.48 7,108.12 (10,366.52) N/A
Cetera Investment ServicesMunicipal Bonds3.650%3.004%12/20/201802/01/2023 250,000.00 264,920.00 256,165.00 8,755.00 6,165.00N/A
Cetera Investment ServicesMunicipal Bonds3.075%3.236%12/20/201806/01/2023 50,000.00 52,594.00 49,746.15 2,847.85 (253.85)
N/A
Cetera Investment ServicesMunicipal Bonds2.500%3.181%12/20/201808/01/2023 35,000.00 36,441.30 34,320.05 2,121.25 (679.95)
N/A
Cetera Investment ServicesMunicipal Bonds3.400%3.148%12/20/201811/01/2023 125,000.00 131,666.25 126,376.25 5,290.00 1,376.25N/A
Cetera Investment ServicesMunicipal Bonds3.400%3.148%12/20/201811/01/2023 65,000.00 68,466.45 65,715.65 2,750.80 715.65N/A
Cetera Investment ServicesMunicipal Bonds1.862%1.862%01/22/202011/01/2023 150,000.00 142,141.50 139,866.00 2,275.50 (10,134.00) N/A
Cetera Investment ServicesMunicipal Bonds5.290%2.724%04/18/201906/01/2023 260,000.00 290,102.80 291,059.96 (957.16) 31,059.96N/A
Cetera Investment ServicesMunicipal Bonds2.854%3.173%12/20/201802/01/2024 100,000.00 106,023.00 99,605.96 6,417.04 (394.04) N/A
Cetera Investment ServicesMunicipal Bonds2.977%3.246%12/20/201803/15/2024 250,000.00 263,957.50 248,743.99 15,213.51 (1,256.01) N/A
Cetera Investment ServicesMunicipal Bonds1.940%1.821%01/13/202005/01/2024 65,000.00 66,208.35 65,570.70 637.65 570.70N/A
Cetera Investment ServicesMunicipal Bonds2.528%1.918%01/13/202012/01/2024 100,000.00 104,960.00 102,999.53 1,960.47 2,999.53N/A
Cetera Investment ServicesMunicipal Bonds3.922%3.429%12/20/201812/01/2024 204,000.00 223,865.52 257,122.49 (33,256.97) 53,122.49N/A
Cetera Investment ServicesMunicipal Bonds5.742%3.658%04/11/201908/01/2024 430,000.00 479,428.50 555,382.50 (75,954.00) 125,382.50N/A
Cetera Investment ServicesMunicipal Bonds4.400%3.221%04/11/201907/01/2025 500,000.00 550,150.00 539,101.11 11,048.89 39,101.1107/01/2023
Cetera Investment ServicesMunicipal Bonds5.640%3.007%04/18/201908/15/2025 205,000.00 186,094.90 169,737.95 16,356.95 (35,262.05) N/A
Cetera Investment ServicesMunicipal Bonds3.743%2.740%04/18/201909/15/2025 215,000.00 237,757.75 228,334.53 9,423.22 13,334.53N/A
Cetera Investment ServicesMunicipal Bonds3.379%1.934%08/19/201910/01/2025 310,000.00 337,044.40 339,739.18 (2,694.78) 29,739.18N/A
Cetera Investment ServicesMunicipal Bonds4.250%3.258%04/11/201901/01/2026 500,000.00 549,790.00 529,769.03 20,020.97 29,769.03N/A
Cetera Investment ServicesMunicipal Bonds6.690%3.356%04/18/201904/15/2026 60,000.00 52,909.20 47,545.20 5,364.00 (12,454.80) N/A
Cetera Investment ServicesMunicipal Bonds3.250%2.903%04/18/201908/01/2026 500,000.00 537,880.00 514,790.69 23,089.31 14,790.69N/A
Cetera Investment ServicesMunicipal Bonds2.150%2.203%07/01/201912/01/2026 40,000.00 41,274.80 40,150.64 1,124.16 150.64N/A
Cetera Investment ServicesMunicipal Bonds2.350%2.191%07/01/201912/01/2026 500,000.00 525,000.00 505,385.00 19,615.00 5,385.00N/A
Cetera Investment ServicesMunicipal Bonds2.375%1.816%09/04/201912/01/2026 90,000.00 93,064.50 93,395.70 (331.20) 3,395.70N/A
Cetera Investment ServicesMunicipal Bonds3.000%1.991%08/19/201902/01/2027 50,000.00 54,476.00 53,551.00 925.00 3,551.00N/A
Cetera Investment ServicesMunicipal Bonds3.150%2.034%08/19/201903/15/2027 100,000.00 108,596.00 109,138.50 (542.50) 9,138.50N/A
Cetera Investment ServicesMunicipal Bonds3.332%3.120%04/18/201904/15/2027 500,000.00 551,455.00 507,783.94 43,671.06 7,783.94N/A
Cetera Investment ServicesMunicipal Bonds3.553%2.289%08/19/201905/01/2027 55,000.00 61,183.10 60,468.04 715.06 5,468.0405/01/2026
Cetera Investment ServicesMunicipal Bonds3.865%2.470%08/19/201905/01/2027 55,000.00 62,386.50 60,986.48 1,400.02 5,986.4805/01/2025
Cetera Investment ServicesMunicipal Bonds2.817%2.817%09/25/201910/01/2027 35,000.00 28,465.15 27,969.55 495.60 (7,030.45)
05/01/2025
Cetera Investment ServicesMunicipal Bonds3.230%1.828%08/19/201905/15/2027 145,000.00 161,434.30 160,827.31 606.99 15,827.31N/A
Cetera Investment ServicesMunicipal Bonds3.270%2.141%08/19/201903/15/2028 155,000.00 171,994.20 60,468.04 111,526.16 (94,531.96) 09/15/2027
Cetera Investment ServicesMunicipal Bonds2.974%2.574%11/07/201904/01/2028 75,000.00 80,865.75 77,253.00 3,612.75 2,253.00N/A
Cetera Investment ServicesMunicipal Bonds3.140%2.004%08/19/201908/01/2028 500,000.00 554,580.00 547,105.00 7,475.00 47,105.0008/01/2027
Cetera Investment ServicesMunicipal Bonds3.000%1.942%08/19/201906/01/2029 115,000.00 129,274.95 125,961.80 3,313.15 10,961.80N/A
Broker Total74.9% 8,919,000.00 9,520,828.53 9,278,998.18 201,862.09 359,998.18
TOTAL INVESTMENTS100.0%$ 12,048,000.00$ 12,715,939.51$ 12,407,998.18$ 210,973.23$ 359,998.18
PORTFOLIO BY PRODUCT TYPEMATURITY SCHEDULE
2/29/2020% of1/31/2020% ofMonthlyMaturityCurrent Value%
Product TypeTotal ValueTotalTotal ValueTotalChangeLess than 1 year$1,250,603.959.8%
Money Market$96,968.100.8%$53,933.380.4%$43,034.721 - 2 years2,276,403.7917.9%
CD's3,138,111.1424.7%3,135,238.7725.0%2,872.372 - 3 years1,165,587.109.2%
Government Bonds0.000.0%0.000.0%0.003 - 4 years 1,318,447.1510.4%
Municipal Bonds9,480,860.2774.6%9,330,633.9374.5%150,226.344 - 5 years1,629,221.0212.8%
TOTAL$12,715,939.51100.0%$12,519,806.08100.0%$196,133.435+ years5,075,676.5039.9%
TOTAL$12,715,939.51100.0%
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ELECTRIC DIVISION
Operating Revenue
February 2020
CLASSAMOUNTKWH$/KWH
Street Lights$0.7714$0.05500
Electric Residential Service$412,066.223,880,561$0.10619
All Electric Residential Service$30,189.67309,606$0.09751
Electric Small General Service$157,886.151,553,203$0.10165
Electric Large General Service$564,867.495,993,620$0.09424
Electric Large Industrial Service$693,934.128,774,000$0.07909
Total$1,858,944.42 20,511,004$0.09063
Power Adjustment$0.00478
Rate Without Power Adjustment$0.08585
Electric Division Year-to-Date
2020 $ Amount2019 $ Amount2020 KWH/102019 KWH/10
5,000,000
4,800,000
4,600,000
4,400,000
4,200,000
4,000,000
3,800,000
3,600,000
3,400,000
3,200,000
3,000,000
2,800,000
2,600,000
2,400,000
2,200,000
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
Street LightsResidentialAll Elec.Small Gen.Large Gen.LargeFor Resale Total
Resid.Srv.Srv.Industrial
NOTE: Sales for resale includes capacity sales, market sales and Transalta sales.
NATURAL GAS DIVISION
Operating Revenue
FEBRUARY 2020
CLASSAMOUNTMCF$/MCF
Residential$532,977.2167,469$7.89959
Commercial$392,981.3350,686$7.75325
Large Industrial$36,957.414,190$8.82038
Large Industrial Contracts$349,906.4395,455$3.66567
Total$1,312,822.38217,800$6.02765
Fuel Adjustment-$1.22000
Rate Without Fuel Adjustment$7.24765
Natural Gas Division Year-to-Date
2020 $ Amount2019 $ Amount2020 MCF2019 MCF
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Gas ResidentialGas CommercialLarge IndustrialLarge Industrial Total
Contracts
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
Review Policies
Presenter: Agenda Item Type:
Jeremy Carter
Review Policies
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
As part of HUC's standard operating procedures, a continual policy review is practiced.
This month, the following policies were reviewed and no changes are recommended on
these policies at this time:
i. Section 3 of Exempt Handbook
ii. Section 3 of Non-Exempt Handbook
BOARD ACTION REQUESTED:
None
Fiscal Impact:
Included in current budget: Budget Change:
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
EXEMPT
SECTION 3 HOURS AND CONDITIONS OF EMPLOYMENT
regular work week is five 8-hour working days with two consecutive days off. The normal work
week is Monday through Friday, except as otherwise established by Staff Personnel based on the
The Utilities office hours are 7:30 a.m. to 4:00 p.m. Monday through Friday.
F LEXTIME P ROGRAM
nager or Director.
R EST P ERIODS
Employees may take one 15-minute paid rest period during each four-hour work period. One rest
period is taken in the morning and the other rest period is taken in the afternoon. Rest periods shall
not be cumulative and shall not be utilized to compensate for other absences.
M EAL P ERIODS
Employees receive an unpaid meal period either one-half hour or one-hour long for a shift lasting
at least six hours. Meal periods shall not be cumulative and shall not be utilized to compensate for
other absences.
A TTENDANCE/T ARDINESS
Employees are expected to work or use approved leave for all their scheduled hours.
Unsatisfactory attendance including reporting late, quitting early or excessive absenteeism shall
be cause for disciplinary action. An employee anticipating being late for any reason, must contact
his/her Director, Manager or Supervisor as far in advance as possible. Employees are also required
to report to their Director, Manager or Supervisor if they are ill and unable to continue working. If
an employee is ill and cannot report to work, the employee must notify his/her Director, Manager
or Supervisor before the scheduled start of the workday.
I NCLEMENT W EATHER
If inclement weather causes an employee to arrive late or leave the job early, the employee must
use vacation time, floating holiday, compensatory time or time without pay for the portion of the
scheduled shift the employee did not work. If the General Manager determines it is necessary to
close HUC offices due to weather, all employees will be paid their regular pay. Essential
employees will be required to remain on-duty, however, they will be given comparable time off at
a later date. If an essential employee living within the limits of the City of Hutchinson cannot get
to the job site due to inclement weather, a HUC vehicle or snowplow will be dispatched to pick up
the essential employee.
NON-EXEMPT
SECTION 3 HOURS AND CONDITIONS OF EMPLOYMENT
See Union Contract.
R EST P ERIODS
Employees may take one 15-minute paid rest period during each four-hour work period. Rest
periods are taken during the second and third hours and between the sixth and seventh hours of the
workday. During the summer, the afternoon rest period shall be taken when the Manager or
Director deems it appropriate. Rest periods shall not be cumulative and shall not be utilized to
compensate for other absences.
M EAL P ERIODS
Employees receive an unpaid meal period of one-half hour for a shift lasting at least six hours.
Meal periods may not be cumulative and may not be utilized to compensate for other absences.
A TTENDANCE/T ARDINESS
Employees are expected to work or use approved leave for all their scheduled hours.
Unsatisfactory attendance including reporting late, quitting early or excessive absenteeism shall
be cause for disciplinary action. An employee anticipating being late for any reason, must contact
his/her Director or Manager as far in advance as possible. Employees are also required to report to
the Director or Manager if they are ill and unable to continue working. If an employee is ill and
cannot report to work, the employee must notify his/her Director or Manager before the scheduled
start of the workday.
U SE OF F ACILITIES D URING O FF-D UTY H OURS
Employees are not allowed on-site during off-duty hours without prior approval of a Director or
Manager.
I NCLEMENT W EATHER
If inclement weather causes an employee to arrive late or leave the job early, the employee must
use vacation time, floating holiday, compensatory time or time without pay for the portion of the
scheduled shift the employee did not work. If the General Manager determines it is necessary to
close HUC offices due to weather, all employees will be paid their regular pay. Essential
employees will be required to remain on-duty, however, they will be given comparable time off at
a later date. If an essential employee living within the limits of the City of Hutchinson cannot get
to the job site due to inclement weather, a HUC vehicle or snowplow will be dispatched to pick up
the essential employee.
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
Marc Sebora
Presenter:Agenda Item Type:
5
Time Requested (Minutes):
Yes
Attachments:
BACKGROUND/EXPLANATION OF AGENDA ITEM:
BOARD ACTION REQUESTED:
None
Fiscal Impact:
Included in current budget: Budget Change:
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
Approvalof3M'sNaturalGasTransportationandDailySwingSupplyAgreement
Presenter:Agenda Item Type:
JohnWebster
NewBusiness
Time Requested (Minutes):
1
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
3M currently transports base load and daily swing supplies of natural gas on Hutchinson Utilities' transmission and
distribution systems. 3M's current agreement expired on January 1, 2020 at 9 A.M.. This agreement provides
transportation rights to 3M on Hutchinson's facilities from March 1, 2020, at 9:00 A.M., through March 1, 2021 at 9:00
A.M..
BOARD ACTION REQUESTED:
Approvalofthe3M'sNaturalGasTransportationandDailySwingSupplyAgreement
Fiscal Impact:Approx. $372,000 per year
Included in current budget: Budget Change:
Yes
No
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
ApproveReq.#008348foraSauerWP45Laircompressorpackage
Presenter:Agenda Item Type:
RandyBlake
NewBusiness
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
BackinJanuaryIpresentedarequisitiontotheboardfor2instrumentaircompressors.
InthisrequisitionwearelookingtoaddanadditionalSauerWP45Lstartingair
compressorthatmatchesthetwothatcamewiththeWartsilaenginepurchase.The
startingairsystemsweretiedtogetheronunits5,6,&7duringtheCaterpillar
installation.Whenall3enginesaredispatched,thetwoexistingcompressorstakealong
timetoreplenishthestartingair.This3rdunitwillspeedtheprocessandlowertheover
allruntimesonallunits.Theadditional$1,980.00isforalifetimewarrantyonthisunit.
Sauerhasguaranteedtheywillhavepartsavailableforthenext35years.Theonly
otherquotethatIcouldreceivewasfromTotalEquipmentCompanyfor$41,485.00and
$1,981.00forthelifetimewarranty.Webudgeted$45,000.00forthisproject.Wewill
haveasmallamountofwiringandpipingtofinishtheinstallation.
BOARD ACTION REQUESTED:
ApproveRequisition#008348foraSauerWP45Laircompressorpackage
Fiscal Impact:$41,016.00
Included in current budget: Budget Change:
Yes
No
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
0
$44,000.00
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
ApproveAmendingAdvertisementforBid(ZigZagTransformer)
Presenter:Agenda Item Type:
JeremyCarter
NewBusiness
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
DuetotherelatedcircumstancessurroundingtheCOVID-19Pandemicandhowthat
haschangedthebusinessoperationsofmanycompanies,staffisrequestingextending
thebidsubmittaldateanadditional3weekstoApril21st.
Staffbelievesextendingtheadvertisementforbiddateisabetteralternativethennot
receivingorreceivingveryfewbidresponseswhilebusinessesareinthistransition.
BOARD ACTION REQUESTED:
ApproveAmendingtheAdvertisementforBid
Fiscal Impact:
Included in current budget: Budget Change:
No
No
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
Amended
Advertisement for Bids
for
Plant 2
8.0 MVA ZIG ZAG Grounding Transformer
Hutchinson Utilities Commission
Hutchinson, Minnesota
Notice is hereby given that the Hutchinson Utilities Commission of the City of
Hutchinson, Hutchinson, Minnesota, hereinafter referred to as the Owner, will receive
st
sealed Bids at the Hutchinson Utilities office until 2:00 pm on the 21 31st day of
Formatted: Superscript
April March, 2020, and will publicly open and read aloud such Bids on the
following equipment:
Plant 2
8.0 MVA ZIG ZAG Grounding Transformer
Proposals shall be properly endorsed and delivered in an envelope marked,
Plant 2 8.0 MVA ZIG ZAG Grounding Transformer and shall be addressed to:
Hutchinson Utilities Commission of the City of Hutchinson, 225 Michigan Street SE,
Hutchinson, Minnesota 55350.
All proposals shall be submitted in duplicate on the Bidder's own letterhead in
facsimile of the Proposal Form enclosed in the Specifications, or by utilizing the Proposal
Form enclosed with the Specifications by typing the official name of the Bidder at the top
of the form.
Each proposal should be accompanied by a Bid Bond, made payable to the
Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota, in the
amount of five per cent (5%) of the Bid, as a guarantythat the Bidder will enter into the
proposed Contract and provide a Performance Bond after his Bid shall have been
accepted.
The successful Bidder shall furnish a Performance Bond in an amount equal to
one hundred per cent (100%) of the Contract price and a Certificate of Insurance with
appropriate limits to the Owner prior to the approval of the Contract.
No Bidder may withdraw his Bid or Proposal for a Period of thirty (30) days after
date of opening of Bids.
At the aforementioned time and place, or at such later time and Place as the Owner
then may fix, the Owner will act upon Proposals received and with its sole discretion may
award Contract(s) for the furnishing of said equipment.
Specifications and Plans are available by contacting:
CE Power, 9200 75th Avenue No., Suite 100, Brooklyn Park, Mn. 55428,
telephone 763-585-3925
The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson,
Minnesota reserves the right to reject any and all bids, or bid irregularities.
By________________________________
________________________, President
Date ____________________________
ATTESTED
By__________________________________
_________________________, Secretary
Date _______________________________
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
ApproveAmendingAdvertisementforBid(25MVATransformer)
Presenter:Agenda Item Type:
JeremyCarter
NewBusiness
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
DuetotherelatedcircumstancessurroundingtheCOVID-19Pandemicandhowthat
haschangedthebusinessoperationsofmanycompanies,staffisrequestingextending
thebidsubmittaldateanadditional3weekstoApril21st.
Staffbelievesextendingtheadvertisementforbiddateisabetteralternativethennot
receivingorreceivingveryfewbidresponseswhilebusinessesareinthistransition.
BOARD ACTION REQUESTED:
ApproveAmendingtheAdvertisementforBid
Fiscal Impact:
Included in current budget: Budget Change:
No
No
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
Amended
Advertisement for Bids
for
Plant 2 25/46.7 MVA LTC Transformer
Hutchinson Utilities Commission
Hutchinson, Minnesota
Notice is hereby given that the Hutchinson Utilities Commission of the City of
Hutchinson, Hutchinson, Minnesota, hereinafter referred to as the Owner, will receive
st
sealed Bids at the Hutchinson Utilities office until 2:00 pm on the 21 31st day of
Formatted: Superscript
April March, 2020, and will publicly open and read aloud such Bids on the
following equipment:
Plant 2 25/46.7 MVA LTC Transformer
Proposals shall be properly endorsed and delivered in an envelope marked,
Plant 2 25/46.7 MVA LTC Transformer and shall be addressed to: Hutchinson Utilities
Commission of the City of Hutchinson, 225 Michigan Street SE, Hutchinson, Minnesota
55350.
All proposals shall be submitted in duplicate on the Bidder's own letterhead in
facsimile of the Proposal Form enclosed in the Specifications, or by utilizing the Proposal
Form enclosed with the Specifications by typing the official name of the Bidder at the top
of the form.
Each proposal should be accompanied by a Bid Bond, made payable to the
Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota, in the
amount of five per cent (5%) of the Bid, as a guaranty that the Bidder will enter into the
proposed Contract and provide a Performance Bond after his Bid shall have been
accepted.
The successful Bidder shall furnish a Performance Bond in an amount equal to
one hundred per cent (100%) of the Contract price and a Certificate of Insurance with
appropriate limits to the Owner prior to the approval of the Contract.
No Bidder may withdraw his Bid or Proposal for a Period of thirty (30) days after
date of opening of Bids.
At the aforementioned time and place, or at such later time and Place as the Owner
then may fix, the Owner will act upon Proposals received and with its sole discretion may
award Contract(s) for the furnishing of said equipment.
Specifications and Plans are available by contacting:
CE Power, 9200 75th Avenue No., Suite 100, Brooklyn Park, Mn. 55428,
telephone 763-585-3925
The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson,
Minnesota reserves the right to reject any and all bids, or bid irregularities.
By________________________________
________________________, President
Date ____________________________
ATTESTED
By__________________________________
_________________________, Secretary