11-29-2023 HUCCPHUTCHINSON UTILITIES COMMISSION
AGENDA
REGULAR MEETING
November 29, 2023
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. CIP Rebate Level of Authority
ii. Delegation of Authority Policy
iii. Financial Reserve Policy
iv. Service Beyond City Limits of Hutchinson
v. Surplus Property Policy
b. Approve Changes
i. Payments of HUC Payables
ii. Purchasing Policy/Credit Cards/Fixed Assets
iii. Investment Policy
iv. Petty Cash — Exempt and Non -Exempt
7. UNFINISHED BUSINESS
8. NEW BUSINESS
a. Approve Non -Waiver of Tort Liability Limits for General Liability Insurance
b. Approve Customer Uncollectable Write -Offs
C. Approval Interconnect Agreement for Heartland Corn Products
d. Approval of Natural Gas Firm Transportation Capacity Agreement with
Heartland Corn Products
e. Approval of Operating Agreement Heartland Corn Products Natural Gas
Transmission Facilities
f. Approve Req#009733 — Replace 2010 Dodge Dakota
g. Approve Req#009734 — Replace 2012 Dodge Ram
h. Approve Req#009735 — City of Hutchinson LED Street Light Conversion
i. Discussion of reappointment of Don Martinez to the Hutchinson Utilities
Commission
Discuss Date for Performance Review of Hutchinson Utilities General
Manager
9. ADJOURN
MINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, October 25, 2023
Call to order — 3:00 p.m.
President Anthony Hanson called the meeting to order. Members present: President
Anthony Hanson; Vice President Matt Cheney; Secretary Don Martinez; Commissioner
Bob Wendorff; Commissioner Kathy Silvernale; GM Jeremy Carter
Absent: Attorney Marc Sebora
President Hanson noted adding a new business item 8g - Unit 1 LM6000 discussion
1. Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Cheney, second by Commissioner Martinez to Approve
the Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
Mr. Martig presented the financial statements. Transmission for the month was over
estimated by $133k, which was based on a typical September. GRE charges HUC
based on HUC's usage at GRE's peak. GRE's peak was Labor Day due to the hot
weather, however 3M was shut down over Labor Day weekend so HUC's usage was
lower during that time.
GM Carter noted even though there was a savings of transmission expenses, HUC
then lost KWH sales with 3M being down. KWH load for the month of September
was down 6.5%, with Industrial class being down about 13%. 3M was down 3 extra
days from last year due to additional maintenance that was needed. This equates
to a reduction of slightly under 1.1 M kwh sales.
With load being down purchase power was down, HUC did not have to procure off
the market. Operating expenses were also down by $116K, last year HUC had
additional expenses that were not incurred this year; transformer material expenses,
higher boiler insurance, purchase of street light materials along with building
maintenance in the production facilities. In the Natural Gas Division with 3M being
down, CF Sold was also down. Total CF Sold for September was down by 22.96%
with Industrial class being down 25.82%; which consisted of 3M being down for 5
days and Minnesota Yeast being down for 2 weeks.
Motion by Commissioner Silvernale, second by Commissioner Wendorff to Approve
the Financial Statements. Motion carried unanimously.
4. Open Forum
5. Communication
a. City Administrator —Matthew Jaunich —
i. Wrapping up Summer/Fall projects
ii. Workshop was held on the results of the Community Survey that is
completed every 4 years. Mr. Jaunich noted that Public Utilities (Gas and
Electric) had an 89% Good or Excellent favorable rate from the
Community.
b. Divisions
i. Dan Lang, Engineering Services Manager — Absent
ii. Dave Hunstad, Electric Transmission/Distribution Manager —
1. With the fiber optic installation work going on in the community, HUC is
taking advantage by installing joint trench to complete reconductor work
that is needed. Saves with cost and easement space. More will be
completed next year.
2. Finishing up Development projects this fall
iii. Mike Gabrielson, Production Manager —
1. 3rd phase of cooling tower is going well. May get pushed out with
weather but hoping to complete next week
iv. John Webster, Natural Gas Division Director —
1 . Construction season coming to an end
2. Provided an Interconnect Station update with the dollars that have been
spent, what has been completed and what still needs to be completed.
Hot Tap is scheduled for Nov 6. Construction to wrap up — middle/end
of January.
3. 27 ft long Easement has been secured to complete the boring of the
road crossing on the HCP project
v. Jared Martig, Financial Manager —
1. MRES rates will be going up 2.7% in 2024 with a projection of 5.4%
increases through 2028. MRES has transmission projects going on
along with looking to retire a coal plant in 12 years.
c. Human Resources — Angie Radke
1. Have a new Employee starting Monday in the Natural Gas Division as a
Welder/Service Person. This will bring HUC back to full staff.
2. Finalizing 2024 Benefits. Looking to have an Open Enrollment meeting for
employees mid -November.
3. First round of Union Negations was last Tuesday, October 17. Follow up
negotiation meeting scheduled for Thursday, November 2.
4. Jeremy and I are working on draft language for the ESST Policy to make
sure HUC will be in compliance for January 1, 2024 deadline.
5. Reminder that the Commissioners will need to set a date and time for the
General Manager annual review, which can be a separate date or in
conjunction with the December regular Commission meeting.
d. Legal — Marc Sebora — Absent
e. General Manager — Jeremy Carter
1. Working on budget and CIP
6. Policies
2
a. Review Policies
i. Natural Gas Service Requirements & Changes
ii. Temporary Service — Natural Gas
iii. Natural Gas Meter Requirements & Placement
iv. Meter Testing — Natural Gas
v. Natural Gas Service Work
vi. Locating Customer's Underground Utilities — Natural Gas
b. Approve Changes
None
7. Unfinished Business
8. New Business
a. Approve Req#009714 — 2024 F550 Cab & Chassis
Mr. Webster presented Approval of Req#009714 - 2024 F550 Cab & Chassis. As
part of the Fleet Management Program, HUC is requesting to replace the 2003 Ford
dump truck. Two bids were received, Holt Motors total price of $59,926.40 was the
lowest bid. HUC did budget $74k. The body of the dump body will be ordered once
HUC has confirmation of a build date for the cab & chassis.
Motion by Commissioner Cheney, second by Commissioner Wendorff to Approve
Req#009714 — 2024 F550 Cab & Chassis. Motion carried unanimously.
b. Approve Natural Gas Commodity Agreement - United Farmers Cooperative
Mr. Webster presented Approval of Natural Gas Commodity Agreement. Current
agreement is due for renewal. UFC would like to continue to contract with HUC for
the purchase of long-term firm natural gas commodity to be delivered to the
Brownton Interconnect Station (Hwy 212). Initial term of agreement to be 10 years.
Commodity Charge is (NNG Ventura Daily Index plus $0.06 (which is an increase
from $0.05)) plus 3.25%.
Motion by Commissioner Silvernale, second by Commissioner Martinez to Approve
Natural Gas Commodity Agreement - United Farmers Cooperative. Motion carried
unanimously.
c. Approve Natural Gas Firm Transportation Capacity Agreement —United Farmers
Cooperative
Mr. Webster presented Approval of Natural Gas Firm Transportation Capacity
Agreement — United Farmers Cooperative. This Agreement is for the transportation
of UFC's Natural Gas from Trimont, MN to the Brownton Interconnect Station (Hwy
212). UFC did decrease the transportation capacity to 1000 Dth/day from 2000
dth/day. Mr. Webster reviewed the different charges for various months.
3
Motion by Commissioner Cheney, second by Commissioner Silvernale to Approve
Natural Gas Firm Transportation Capacity Agreement —United Farmers Cooperative.
Motion carried unanimously.
d. Approve 2023 Audit Services with Conway Deuth & Schmiesing
Mr. Martig presented Approval 2023 Audit Services with Conway Deuth &
Schmiesing. For fiscal year 2023, Audit Services have increased to $28,500. Mr.
Martig provided a 10-year history for review.
Motion by Commissioner Martinez, second by Commissioner Silvernale to Approve
2023 Audit Services with Conway Deuth & Schmiesing. Motion carried unanimously.
e. Approve Setting a Special Budget Workshop Meeting at 2pm on November 29,
2023
Ms. Radke presented Approval of Setting a Special Budget Workshop Meeting at
2pm on November 29, 2023. Based on the feedback that was received from the
Commissioners, Staff would like to set a Special Budget Workshop Meeting at 2pm
on November 29, 2023 before the regular scheduled Commission Meeting.
Motion by Commissioner Cheney, second by Commissioner Martinez to Approve
Setting a Special Budget Workshop Meeting at 2pm on November 29, 2023. Motion
carried unanimously.
f. Approve Rescheduling the December 27, 2023 Regular Commission Meeting to
December 20, 2023.
Ms. Radke presented Approval of Rescheduling the December 27, 2023 Regular
Commission Meeting to December 20, 2023. Based on the feedback that was
received from the Commissioners, Staff would like to reschedule the December 27,
2023 regular Commission Meeting to December 20, 2023 at 3pm.
Motion by Commissioner Wendorff, second by Commissioner Cheney to Approve
Rescheduling the December 27, 2023 Regular Commission Meeting to December
20, 2023. Motion carried unanimously.
g. Unit 1 LM6000 Discussion
Mr. Gabrielson started the Unit 1 LM6000 Discussion. Currently the turbine is at GE
waiting for HUC to decide on repairs that GE has identified. There are a list of Non-
serviceable/Repair (NSR's) that do not meet GE's minimum specs. Mr. Gabrielson
recapped an email that was sent to the Commissioners providing background and
the pros and cons to 3 options that are available. Along with providing a Mid -Shaft
finding update.
GM Carter provided additional information on the options.
Discussion was also held on time frames, permitting, safety concerns and capacity
contracts.
GM Carter spoke of additional change orders that may come up and how those
should be handled.
12
Commissioners will think about the 3 options available along with how change orders
should be handled. Staff will provide additional information on questions that will be
asked of GE after today's meeting, which will include the safety of the engine.
Ms. Radke will look at scheduling a Special Meeting for next week.
9. Adjourn
There being no further business, a motion by Commissioner Cheney, second by
Commissioner Silvernale to adjourn the meeting at 3:50p.m. Motion carried
unanimously.
ATTEST:
Anthony Hanson, President
5
Don Martinez, Secretary
MINUTES
Special Meeting — Hutchinson Utilities Commission
Monday, October 30, 2023
Call to order — 7:30a.m.
President Anthony Hanson called the meeting to order. Members present: President
Anthony Hanson; Vice President Matt Cheney; Secretary Don Martinez; Commissioner
Robert Wendorff; Commissioner Kathy Silvernale; GM Jeremy Carter; Attorney Marc
Sebora
Others Present: Mike Gabrielson; Dan Lang; Angie Radke
The purpose of the special meeting is to have Unit 1 LM6000 Discussions.
GM Carter and Mr. Gabrielson recapped information that was provided at last week's
Regular Commission Meeting along with new information that was received from GE.
Discussion was held on HUC's current PA model moving to a PC model; would
emissions/permitting be the same and would HUC need to go out to Bid. Mr. Sebora
stated going out for bid would not be needed since the generator itself would be the same
and only a component would be replaced.
Mr. Gabrielson noted that if the critical NSRs are taken care of, the engine would
permanently be "On Watch" of around 300-500 hours. HUC runs about 500 hours a year.
An update was given on the PC option. The PC engine is an Overhauled (OH'd) engine
that would be ready to ship in May 2024 with an estimate of 15-25 days for turnkey
installation. Costs of the OH'd unit was also discussed along with a new PC engine being
available in December as an option.
Consideration on the age of the OH'd unit, costs of what HUC has already put into the
Unit, and trade-in value of HUC's current PA model were also discussed
Commissioners would like to have Jeff Fassett review GE's responses and see if a
second opinion is needed.
Discussion was held about recessing the meeting. Meeting is recessed until Wednesday,
November 1, 2023 at 7:30am.
There being no further business, a motion by Commissioner Martinez, second by
Commissioner Cheney to adjourn the meeting at 8-11a.m. Motion carried unanimously.
ATTEST:
Anthony Hanson, President
1
Don Martinez, Secretary
MINUTES
Special Meeting — Hutchinson Utilities Commission
Wednesday, November 1, 2023
Call to order — 7:30a.m.
President Anthony Hanson called the meeting to order. Members present: President
Anthony Hanson; Vice President Matt Cheney; Secretary Don Martinez; Commissioner
Robert Wendorff; Commissioner Kathy Silvernale; GM Jeremy Carter; Attorney Marc
Sebora
Others Present: Mike Gabrielson; Angie Radke
The purpose of the special meeting is a continuation of Unit 1 LM6000 Discussions from
the October 30, 2023 Special Meeting that was recessed.
Mr. Gabrielson started the discussion regarding the Unit 1 LM6000. There is always a
risk of fire with gas turbines, no matter the condition of the hardware. Mr. Gabrielson
stated that Staff would section off an area around the engine during operation that
employees could not pass. Also, since the engine is in an enclosure, this mitigates the
potential safety hazard of liberations or catastrophic failures.
Mr. Gabrielson also stated that Staff would like to proceed with fixing the Mid -Shaft and
other critical NSR's. Along with the Mid -Shaft that needs to be sent out and tested by a
3rd party for continued use, there is also a Balance Piston which was not on the original
list but now needs to be sent out and tested.
GM Carter noted that Brian Hulse from IEM Energy Consultants asked GE if Commercial
-Aviation parts can be used. GE does not use Commercial parts, but will discuss offline
and work internally to see what avenues can be done.
GM Carter provided an update on the Overhauled (OH'd) PC engine that would be ready
to ship in May 2024. GE is confirming baseplate modifications that may or may not be
required. The cost of the OH'd unit would be $14M, a new unit would be $16M. The price
does not include an exchange value on HUC's current PA model or the additional cost of
the "sprint" package. The Sprint package provides an additional 11 MW's of power. The
OH'd unit is a 1998 model and was put into service in 1999. The warranty of the OH'd
unit is 1 year, could possibly get 2-year warranty on a new unit. Permitting requirements
are also being looked into by HUC Staff on replacing the existing PA model with a new
unit.
Staff recommends proceeding with the critical NSR's and 3rd party review of the mid -shaft
and balance piston. If it is deemed that the mid -shaft or balance piston is not repairable
and/or new parts cannot be procured then looking at an OH'd or new engine may be an
option. Any costs incurred on improving HUC's current unit will be valued into the trade-
in value on a PC model if that is the only viable option.
There was a consensus from the Commission to send out the mid -shaft and piston.
Commissioners do not need to be involved in every change order and are comfortable
with having Mr. Gabrielson and GM Carter make those decisions up to a dollar amount
along with GM Carter documenting the charges and providing an update on a regular
basis to the Commissioners.
Motion by Commissioner Silvernale, second by Commissioner Cheney to Approve GM
Carter the Authority of up to $500K in addition to what the Commission already Approved
with the oil leak along with GM Carter to give additional updates to the Commission on a
regular basis. Motion carried unanimously.
There being no further business, a motion by Commissioner Cheney, second by
Commissioner Martinez to adjourn the meeting at 8-11a.m. Motion carried unanimously
ATTEST:
Anthony Hanson, President
2
Don Martinez, Secretary
MINUTES
Special Meeting — Hutchinson Utilities Commission
Wednesday, November 15, 2023
Call to order — 7:30a.m.
President Anthony Hanson called the meeting to order. Members present: President
Anthony Hanson; Vice President Matt Cheney; Secretary Don Martinez; Commissioner
Robert Wendorff; GM Jeremy Carter; Attorney Marc Sebora
Absent: Commissioner Kathy Silvernale
Others Present: Dan Lang; Angie Radke
The purpose of the special meeting is to Approve the Hutchinson Substation Transformer
Contract.
Mr. Lang presented Approval of the Hutchinson Substation Transformer Contractor. This
is the last step in process. At the September 7, 2023 bid opening, 4 bids were received.
Pennsylvania Transformer Technology Inc was the lowest evaluated price of the bids
received. October 9, 2023 the bid was awarded. HUC has now received all needed
signatures, insurance, and bond documents.
Motion by Commissioner Cheney, second by Commissioner Martinez to Approve the
Contract with Pennsylvania Transformer Technology Inc for the purchase of an 83MVA
Transformer. Motion carried unanimously.
There being no further business, a motion by Commissioner Wendorff, second by
Commissioner Martinez to adjourn the meeting at 7:36a.m. Motion carried unanimously.
ATTEST:
Anthony Hanson, President
1
Don Martinez, Secretary
11/20/2023 02:29
PM
CHECK DISBURSEMENT
REPORT FOR HUTCHINSON UTILITIES
Page 1/20
User: JMartig
CHECK DATE FROM
10/19/2023 - 11/20/2023
DE: Hutchinson
Utili
Check Date
Bank
Check #
Payee
Description
Account
Dept
Amount
Fund: 1 ELECTRIC
10/30/2023
GEN
79806
A & L INVESTMENTS
OVERPAYMENTS
142-000-
00
368.58
10/30/2023
GEN
79807*
A R ENGH HEATHING AND AIR COND,
Grounds - Materials
401-935-
08
300.00
10/30/2023
GEN
79808*
AARON SHOWALTER
DEP REFUND/APPLIED
235-000-
00
156.00
10/30/2023
GEN
79809*4
ACE HARDWARE
Sales Tax Receivable - Replace
186-000-
00
1.55
Supplies
401-550-
01
64.11
Supplies
401-550-
01
98.28
Supplies
401-550-
01
5.33
Supplies
401-550-
01
it.09
Generator 41 Material
402-554-
01
22.57
Maintenance Other - Materials
402-554-
01
7.04
Materials
402-574-
03
8.11
HECK GEN 79809 TOTAL FOR FUND 1:
218.08
10/30/2023
GEN
79810
ALTEC INDUSTRIES INC
Vehicles - Material
402-598-
02
2,452.85
10/30/2023
GEN
79811*
AMANDA BIJOLD
DEP REFUND/APPLIED
235-000-
00
237.25
10/30/2023
GEN
79812
ANGELA HURD
OVERPAYMENTS
142-000-
00
32.83
10/30/2023
GEN
79814*
ARIANA DUNCAN
DEP REFUND/APPLIED
235-000-
00
117.00
10/30/2023
GEN
79815*
ASGH PROPERTIES LLC
DEP REFUND/APPLIED
235-000-
00
130.00
DEP REFUND/APPLIED
235-000-
00
178.75
HECK GEN 79815 TOTAL FOR FUND 1:
308.75
10/30/2023
GEN
79816
AURENTZ PROJECT RESTORATION LLC
Install 2-2" Duct Joint Trench Oct 16-
107-366-
00
19,620.00
Install 2-2" Duct Oct 2nd
107-366-
00
9,728.00
HECK GEN 79816 TOTAL FOR FUND 1:
29,348.00
10/30/2023
GEN
79818*4
BORDER STATES ELECTRIC SUPPLY
FUSE, ACORN, 5 AMP, GLRS
154-000-
00
43.70
KIT, SPLICE, (LONG), 1/0 15KV TO 42 SIR
154-000-
00
561.
90
SPLIT BOLT 48 KS-15 Cu BURNDY
154-000-
00
35.20
TAPE, VINYL MASTIC ROLL, 4" x 10 x
154-000-
00
83.06
Sales Tax Receivable - New
186-000-
00
41.64
Sales Tax Receivable - New
186-000-
00
2.42
Sales Tax Receivable - New
186-000-
00
5.71
Maint Power Prod Plant - Build
402-554-
01
2,186.23
11/20/2023 02:29 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 10/19/2023 - 11/20/2023
Payee Description
Account
Dept
Page 2/20
Amount
Fund: 1 ELECTRIC
BATTERY, SIZE D
401-581-
02
82.80
TAX
401-588-
02
5.69
HECK GEN 79818 TOTAL FOR FUND 1:
3,048.35
10/30/2023
GEN
79819*
BROOKE MICKOLICHEK
DEP REFUND/APPLIED
235-000-
00
130.00
10/30/2023
GEN
79820*
BRUCE DANIELS
DEP REFUND/APPLIED
235-000-
00
143.00
10/30/2023
GEN
79821*
BRYAN BOYD
DEP REFUND/APPLIED
235-000-
00
149.50
10/30/2023
GEN
79822*
BUNNY BASSLER
DEP REFUND/APPLIED
235-000-
00
162.50
10/30/2023
GEN
79823
CARLY'S SHOE STORE
Uniforms & Laundry
401-588-
02
251.49
10/30/2023
GEN
79824*
CAROLYN ROSS
DEP REFUND/APPLIED
235-000-
00
65.00
10/30/2023
GEN
79825*4
CINTAS CORPORATION 4470
Uniforms & Laundry
401-550-
01
247.54
UNIFORMS & LAUNDRY
401-588-
02
151.33
HECK GEN 79825 TOTAL FOR FUND 1:
398.87
10/30/2023
GEN
79826
COOLING TOWER DEPOT
Dog House, E. Cell Structure, Esc
107-341-
00
74,655.00
STRUCTURES & IMPROVEMENTS (BUI
107-341-
00
10.00
Sales Tax Receivable - Replace
186-000-
00
5,883.60
HECK GEN 79826 TOTAL FOR FUND 1:
80,548.60
10/30/2023
GEN
798274
DAKOTA SUPPLY GROUP
ELBOW, FIBERGLASS, 2" IPS, .070" WALL,
154-000-
00
627.86
FREIGHT
401-588-
02
152.97
HECK GEN 79827 TOTAL FOR FUND 1:
780.83
10/30/2023
GEN
79828
DEBBIE RIGELMAN
OVERPAYMENTS
142-000-
00
201.29
10/30/2023
GEN
79830
DGR ENGINEERING
3M Substation Relay and RTU Upgrades
107-362-
00
8,856.00
STATION EQUIPMENT (SWITCHGEAR,
107-362-
00
38.24
Hutchinson Substation 115kV rebuild
107-362-
00
1,932.00
STATION EQUIPMENT (SWITCHGEAR,
107-362-
00
76.13
HECK GEN 79830 TOTAL FOR FUND 1:
10,902.37
10/30/2023
GEN
79831*
DOUG MOULTON
DEP REFUND/APPLIED
235-000-
00
182.00
11/20/2023 02:29 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 10/19/2023 - 11/20/2023
Payee Description
Account
Dept
Page 3/20
Amount
Fund: 1 ELECTRIC
10/30/2023
GEN
79832*
ELISE PLATH
DEP REFUND/APPLIED
235-000-
00
208.00
10/30/2023
GEN
79833*
ERIK RIVERA
DEP REFUND/APPLIED
235-000-
00
71.50
10/30/2023
GEN
79834*
GAIL NELSON
DEP REFUND/APPLIED
235-000-
00
117.00
10/30/2023
GEN
79835*
GEORGE MCCONNELL OR MONICA
DEP REFUND/APPLIED
235-000-
00
52.00
10/30/2023
GEN
79836
GREAT RIVER ENERGY
TRANSMISSION EXPENSE
401-565-
03
126,878.51
10/30/2023
GEN
79837
HANSON & EASED CONSTRUCTION, INC
UNDERGROUND CONDUIT & MANHOLES
107-366-
00
1,025.00
10/30/2023
GEN
79838
HOWARD J MEYER III
OVERPAYMENTS
142-000-
00
31.18
10/30/2023
GEN
79839
HUSTON'S CRANE SERVICE, INC
STRUCTURES & IMPROVEMENTS (BUI
107-341-
00
440.00
10/30/2023
GEN
79840*4
HUTCHINSON WHOLESALE SUPPLY CO
Supplies
401-550-
01
11.75
10/30/2023
GEN
79841*
JAKE CRUMB
DEP REFUND/APPLIED
235-000-
00
71.50
10/30/2023
GEN
79842
JASMINE KRON
OVERPAYMENTS
142-000-
00
39.62
10/30/2023
GEN
79843
JEFFREY GORDON
OVERPAYMENTS
142-000-
00
172.76
10/30/2023
GEN
79844*
KATIE KNAAK
DEP REFUND/APPLIED
235-000-
00
87.75
10/30/2023
GEN
79845*
KELLEY ESTES
DEP REFUND/APPLIED
235-000-
00
227.50
10/30/2023
GEN
79846*
KELLY BOLER
DEP REFUND/APPLIED
235-000-
00
48.75
10/30/2023
GEN
79849*
LAURA BELLIS
DEP REFUND/APPLIED
235-000-
00
182.00
10/30/2023
GEN
79850*
LAURIE HAWKINS-BELDEN
DEP REFUND/APPLIED
235-000-
00
32.50
10/30/2023
GEN
798524
LOCATORS & SUPPLIES INC
PAINT, LOCATING, INVERTED MARKING
(256) 154-000-
00
99.96
Sales Tax Receivable - New
186-000-
00
8.91
FREIGHT
401-588-
02
29.63
HECK GEN 79852 TOTAL FOR FUND 1:
138.50
11/20/2023 02:29 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 10/19/2023 - 11/20/2023
Payee Description
Account
Dept
Page 4/20
Amount
Fund: 1 ELECTRIC
10/30/2023
GEN
79853*
LOGAN TEUBERT
DEP REFUND/APPLIED
235-000-
00
65.00
10/30/2023
GEN
79855*
MARTIG, JARED
TRAINING - EXPENSE
401-930-
08
119.28
10/30/2023
GEN
79856
MATTHEW BANNOW
OVERPAYMENTS
142-000-
00
257.89
10/30/2023
GEN
79857
MN MUNICIPAL UTILITIES ASSOCIATION
DUES/MEMBERSHIP EXPENSE-QTR ELEC DUES
401-930-
08
8,366.75
10/30/2023
GEN
79860*
NICK TWISS
DEP REFUND/APPLIED
235-000-
00
39.00
10/30/2023
GEN
79863*4
O'REILLY AUTOMOTIVE INC
Supplies
401-550-
01
45.18
10/30/2023
GEN
79864*
PAIGE SCHILLING
DEP REFUND/APPLIED
235-000-
00
182.00
10/30/2023
GEN
79865*4
PRO AUTO & TRANSMISSION REPAIR
Vehicles - Material
402-554-
01
74.09
Vehicles - Material
402-554-
01
75.96
VEHICLES - MATERIAL-ELEC
402-598-
02
1,108.68
HECK GEN 79865 TOTAL FOR FUND 1:
1,258.73
10/30/2023
GEN
798664
PRO ENERGY SERVICES LLC
Overhaul Fuel Nozzles
402-554-
01
12,600.00
FREIGHT
401-588-
02
111.15
HECK GEN 79866 TOTAL FOR FUND 1:
12,711.15
10/30/2023
GEN
79867*
RADKE, ANGIE
Training - Expense
401-930-
08
32.09
10/30/2023
GEN
79868*
RELIANCE STANDARD LIFE -LIFE
LTD INSURANCE-80o ELEC
242-000-
00
1, 649.
85
LIFE INSURANCE-80o ELEC
242-000-
00
1,060.16
HECK GEN 79868 TOTAL FOR FUND 1:
2,710.01
10/30/2023
GEN
79869*
RIVER HOUSE KITCHEN + DRINKS LLP
DEP REFUND/APPLIED
235-000-
00
1,592.50
10/30/2023
GEN
79870*4
RUNNING'S SUPPLY INC
Supplies
401-550-
01
118.82
Supplies
401-550-
01
68.95
Other Equipment - Labor
402-598-
02
107.86
Grounds - Materials
401-935-
08
20.48
HECK GEN 79870 TOTAL FOR FUND 1:
316.11
10/30/2023
GEN
79873*
RYLEE BENNETT OR MARC SALAZAR
DEP REFUND/APPLIED
235-000-
00
208.00
11/20/2023 02:29
PM
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
Page 5/20
User: JMartig
CHECK DATE
FROM 10/19/2023 - 11/20/2023
DE: Hutchinson
Utili
Check Date
Bank
Check #
Payee
Description
Account
Dept
Amount
Fund: 1 ELECTRIC
10/30/2023
GEN
79875*
SETH RICE OR MASON TANK
GET REFUND/APPLIED
235-000-
00
52.00
10/30/2023
GEN
79876*
SHARON STORK
GET REFUND/APPLIED
235-000-
00
71.50
10/30/2023
GEN
79877*
SHRED RIGHT
OFFICE SUPPLIES -SHREDDING SERVICES
401-921-
08
15.76
10/30/2023
GEN
79878
STATE OF MINNESOTA
Regulatory Expenses
401-928-
08
1,687.15
10/30/2023
GEN
79879
STEVE POTTER
OVERPAYMENTS
142-000-
00
96.
90
10/30/2023
GEN
79880*
STUARDO SANCHEZ
GET REFUND/APPLIED
235-000-
00
45.50
10/30/2023
GEN
79882*
TONY CHRISTIANSEN
GET REFUND/APPLIED
235-000-
00
162.50
10/30/2023
GEN
79883*
TORIN STEVENS
GET REFUND/APPLIED
235-000-
00
42.25
10/30/2023
GEN
79884*
UNITED INFORMATION SERVICES,
INC COLLECTION - MATERIALS
401-903-
06
2,003.86
10/30/2023
GEN
79885*
VERIZON WIRELESS
TELEPHONE
401-921-
08
234.14
10/30/2023
GEN
798864
VOLCO COMPANY
SWITCH, FLOW EXHAUST VENTILATOR
154-000-
00
762.00
Sales Tax Receivable - Replace
186-000-
00
62.31
FREIGHT
401-588-
02
29.22
HECK GEN 79886 TOTAL FOR FUND 1:
853.53
10/30/2023
GEN
79887*
WAYNE AAMODT
GET REFUND/APPLIED
235-000-
00
48.75
10/30/2023
GEN
79888
WHEELHOUSE INDUSTRIAL
Plant 2 Ladder Access Install
107-341-
00
45,383.86
STRUCTURES & IMPROVEMENTS (BUI
107-341-
00
56.12
Sales Tax Receivable - Replace
186-000-
00
3,124.00
HECK GEN 79888 TOTAL FOR FUND 1:
48,563.98
10/30/2023
GEN
79889*
YESENIA BORJON
GET REFUND/APPLIED
235-000-
00
52.00
11/14/2023
GEN
79891*4
ACE HARDWARE
Sales Tax Receivable - Replace
186-000-
00
1.34
Supplies
401-550-
01
164.92
Supplies
401-550-
01
119.40
11/20/2023 02:29
PM
CHECK DISBURSEMENT
REPORT FOR HUTCHINSON UTILITIES
Page 6/20
User: JMartig
CHECK DATE FROM
10/19/2023 - 11/20/2023
DE: Hutchinson
Utili
Check Date
Bank
Check #
Payee
Description
Account
Dept
Amount
Fund: 1 ELECTRIC
Supplies
401-550-
01
27.77
Supplies
401-550-
01
37.52
Supplies
401-550-
01
17.09
Supplies
401-550-
01
28.85
Supplies
401-550-
01
11.73
Accessory Plant - Materials
402-554-
01
19.56
Maintenance Other - Materials
402-554-
01
29.91
Maintenance Other - Materials
402-554-
01
26.71
Line - Materials
401-581-
02
7.47
Line - Materials
401-581-
02
14.95
Grounds - Materials
401-935-
08
74.24
HECK GEN 79891 TOTAL FOR FUND 1:
581.46
11/14/2023
GEN
798924
AERODERIVATIVE GAS TURBINE
5CG94 Ring Packing Quote C109347
402-554-
01
570.00
P701-151-37 Oring Quote C109347
402-554-
01
120.00
FREIGHT
401-588-
02
24.56
HECK GEN 79892 TOTAL FOR FUND 1:
714.56
11/14/2023
GEN
79893
ALTEC INDUSTRIES INC
Vehicles - Material
402-598-
02
2,088.32
11/14/2023
GEN
79894*
AMERICAN PAYMENT CENTERS INC
BOX RENTAL
401-903-
06
51.14
11/14/2023
GEN
79896
APR STORAGE
OVERPAYMENTS
142-000-
00
810.06
11/14/2023
GEN
79899*
BIRCHDALE FIRE & SAFETY
GROUNDS - OUTSIDE SERVICES
401-935-
08
117.84
11/14/2023
GEN
79900
BLUE ZONE HOLDINGS
OVERPAYMENTS
142-000-
00
269.
15
11/14/2023
GEN
79901*4
BORDER STATES ELECTRIC SUPPLY
FUSE, ACORN, 5 AMP, GLRS
154-000-
00
65.55
INHIBITOR, OXIDE, DE-OX, 8 OF, ILSCO
154-000-
00
23.19
INHIBITOR, OXIDE, DE-OX, 8 OF, ILSCO
154-000-
00
7.73
TAPE, 33+SUPER-1-1/2X36YD
154-000-
00
112.02
Sales Tax Receivable - New
186-000-
00
4.51
Sales Tax Receivable - New
186-000-
00
1.59
Sales Tax Receivable - New
186-000-
00
0.53
TAX
401-588-
02
7.70
HECK GEN 79901 TOTAL FOR FUND 1:
222.82
11/14/2023
GEN
79902
BBANDI CROSBY
OVERPAYMENTS
142-000-
00
24.40
11/14/2023
GEN
799054
CARR'S TREE SERVICE
OVERHEAD CONDUCTOR
107-365-
00
2,202.75
OVERHEAD CONDUCTOR
107-365-
00
4,988.00
11/20/2023 02:29 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check # Payee
Fund: 1 ELECTRIC
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 10/19/2023 - 11/20/2023
Description
11/14/2023 GEN 79906 CARTWRIGHT & ASSOCIATES
11/14/2023 GEN 799074 CENTRAL HYDRAULICS
11/14/2023 GEN 79910* CHRISTINE CAVANAUGH
11/14/2023 GEN 79912*4 CINTAS CORPORATION 4470
11/14/2023 GEN 79913*4 CITY OF HUTCHINSON
11/14/2023
GEN
79915*
DAN ZENNER
11/14/2023
GEN
79916
DANIELLE FLOOR
11/14/2023
GEN
79917*
DELORES OLSON
11/14/2023
GEN
79918
DESIGN ELECTRIC, INC
11/14/2023
GEN
79919
DGR ENGINEERING
11/14/2023 GEN 79921*4 FASTENAL COMPANY
Page 7/20
Account Dept
Amount
Sales Tax Receivable -
New
186-000-
00
151.44
Sales Tax Receivable -
New
186-000-
00
342.93
Materials
401-588-
02
1,801.75
HECK GEN 79905 TOTAL
FOR FUND 1:
9,486.87
XML Service Quote for
Hutchinson QTR 3
402-554-
01
1,750.00
Sales Tax Receivable -
Replace
186-000-
00
0.16
Generator 41 Material
402-554-
01
2.33
HECK GEN 79907 TOTAL
FOR FUND 1:
2.49
Cip - Residential
401-916-
07
150.00
Uniforms & Laundry
401-550-
01
247.54
Uniforms & Laundry
401-550-
01
248.06
UNIFORMS & LAUNDRY
401-588-
02
151.33
UNIFORMS & LAUNDRY
401-588-
02
151.45
HECK GEN 79912 TOTAL
FOR FUND 1:
798.38
VEHICLE/EQUIPMENT FUEL
-POWER
401-550-
01
254.99
Maintenance Other - Materials
402-554-
01
1,387.60
VEHICLES/EQUIPMENT FUEL-ELEC
401-588-
02
2,237.10
VEHICLES/EQUIPMENT FUEL-ADMIN
55/45
401-935-
08
56.05
HECK GEN 79913 TOTAL
FOR FUND 1:
3,935.74
Cip - Residential
401-916-
07
25.00
OVERPAYMENTS
142-000-
00
62.33
Cip - Residential
401-916-
07
1,200.00
Maintenance Other - Materials
402-554-
01
115.81
Hutchinson Substation
115kV rebuild
107-362-
00
8,904.00
STATION EQUIPMENT (SWITCHGEAR,
107-362-
00
43.00
HECK GEN 79919 TOTAL
FOR FUND 1:
8,947.00
Sales Tax Receivable -
Replace
186-000-
00
2.61
Supplies
401-550-
01
21.89
11/20/2023 02:29 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 10/19/2023 - 11/20/2023
Payee Description
Account
Dept
Page 8/20
Amount
Fund: 1 ELECTRIC
Accessory Plant - Materials
402-554-
01
87.92
HECK GEN 79921 TOTAL FOR FUND 1:
112.42
11/14/2023
GEN
79922*
FIRST CHOICE FOOD & BEVERAGE
BREAKROOM/RECOGNITION BANQUET
401-926-
08
202.50
11/14/2023
GEN
79923*4
GOPHER STATE ONE -CALL INC
Line - Materials
401-581-
02
240.98
11/14/2023
GEN
79926
HER ENGINEERING INC
Outside Services
402-554-
01
1,444.86
11/14/2023
GEN
79927*
HEALTH PARTNERS
HEALTH INSURANCE-85o ELEC
242-000-
00
50,167.51
HEALTH INSURANCE -COBRA
242-000-
00
1,354.32
HECK GEN 79927 TOTAL FOR FUND 1:
51,521.83
11/14/2023
GEN
79928*4
HILLYARD/HUTCHINSON
Supplies
401-550-
01
179.98
Grounds - Materials
401-935-
08
308.33
HECK GEN 79928 TOTAL FOR FUND 1:
488.31
11/14/2023
GEN
79929*
HOLLY RUSTAD
collection - Materials
401-903-
06
233.75
11/14/2023
GEN
79930*
HUTCHFIELD SERVICES
Grounds - Outside Services
401-935-
08
1,093.21
11/14/2023
GEN
799324
HUTCHINSON WHOLESALE SUPPLY CO
Sales Tax Receivable - Replace
186-000-
00
10.73
Accessory Plant - Materials
402-554-
01
156.04
Materials
401-588-
02
16.55
HECK GEN 79932 TOTAL FOR FUND 1:
183.32
11/14/2023
GEN
799334
INDELCO PLASTICS CORPORATION
SKU # 1088KPG, 1/2 tube to 1/2 MNPT
402-554-
01
62.50
FREIGHT
401-588-
02
13.50
HECK GEN 79933 TOTAL FOR FUND 1:
76.00
11/14/2023
GEN
79934
IRBY TOOL & SAFETY
Uniforms & Laundry
401-588-
02
449.67
11/14/2023
GEN
79935
JEREMY OR DENNIS MCCUTCHEN
OVERPAYMENTS
142-000-
00
111.18
11/14/2023
GEN
799364
JOHN HENRY FOSTER
VALVE, SOLENOID, (ZEKS DRYER)
154-000-
00
325.31
Sales Tax Receivable - Replace
186-000-
00
27.27
FREIGHT
401-588-
02
20.90
HECK GEN 79936 TOTAL FOR FUND 1:
373.48
11/20/2023 02:29 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check # Payee
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 10/19/2023 - 11/20/2023
Description
Fund: 1 ELECTRIC
11/14/2023
GEN
79937*
JOHNSON, LORI
11/14/2023
GEN
79938
JON OR DAWN WHEELER
11/14/2023
GEN
79939
KATHLEEN SOLHEIM
11/14/2023
GEN
79940*
KIM FREEMAN
11/14/2023
GEN
799424
KURITA AMERICA INC
11/14/2023 GEN 79943 L & Z PROPERTIES
11/14/2023 GEN 79945 LINDA RETKA
11/14/2023 GEN 79947*4 LOCATORS & SUPPLIES INC
11/14/2023
GEN
79948*
MADDEN GALANTER HANSEN
11/14/2023
GEN
79949
MADYSON BJORGE OR AUSTIN LAND
11/14/2023
GEN
79950*
MARCO TECHNOLOGIES, LLC
11/14/2023
GEN
799514
MATHESON TRI-GAS INC
11/14/2023 GEN 799524 MCC ENERGY SOLUTIONS, LLC
Page 9/20
Account Dept
Amount
Meetings & Travel - Expense (S
401-903-
06
924.51
OVERPAYMENTS
142-000-
00
0.86
OVERPAYMENTS
142-000-
00
94.17
Cip - Residential
401-916-
07
150.00
Sales Tax Receivable -
Replace
186-000-
00
10.59
Accessory Plant - Materials
402-554-
01
154.00
HECK GEN 79942 TOTAL
FOR FUND 1:
164.59
OVERPAYMENTS
142-000-
00
242.49
OVERPAYMENTS
142-000-
00
122.82
HECK GEN 79943 TOTAL
FOR FUND 1:
365.31
OVERPAYMENTS
142-000-
00
47.33
PAINT, LOCATING, INVERTED
MARKING (256)
154-000-
00
623.52
Sales Tax Receivable -
New
186-000-
00
47.59
SAFETY GLASSES, GRAY,
SILVER MIRROR,
401-550-
01
39.90
FREIGHT
401-588-
02
68.81
TAX & FREIGHT
401-588-
02
15.20
SAFETY GLASSES, GRAY,
SILVER MIRROR,
401-588-
02
39.
90
HECK GEN 79947 TOTAL
FOR FUND 1:
834.92
Legal Services
401-923-
08
1,539.22
OVERPAYMENTS
142-000-
00
57.25
OFFICE SUPPLIES
401-921-
08
521.68
Sales Tax Receivable -
Replace
186-000-
00
14.43
Generator 41 Material
402-554-
01
209.90
HECK GEN 79951 TOTAL
FOR FUND 1:
224.33
I AM MANAGEMENT FEES
401-555-
02
3,900.00
IAM USAGE FEES
401-556-
03
3,050.00
CHECK GEN 79952 TOTAL
FOR FUND 1:
6,950.00
11/20/2023 02:29 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check # Payee
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 10/19/2023 - 11/20/2023
Description
Fund: 1 ELECTRIC
11/14/2023
GEN
79953
MIAMAH DENNIS
11/14/2023
GEN
79954
MID -STATE ROLL -OFF SERVICE
11/14/2023
GEN
79955
NDM RESTAURANT LLC
11/14/2023
GEN
79956
NICOLE DEAL
11/14/2023 GEN 79959* NUVERA
11/14/2023 GEN 79960*4 OXYGEN SERVICE COMPANY INC
11/14/2023 GEN 79961* PETER WHITE
Account Dept
Page 10/20
Amount
OVERPAYMENTS
142-000-
00
5.16
STRUCTURES & IMPROVEMENTS
(BUI
107-341-
00
1,136.00
OVERPAYMENTS
142-000-
00
2,191.17
Cip - Residential
401-916-
07
200.00
TELEPHONE
401-921-
08
1,912.13
Supplies
401-550-
01
107.64
Supplies
401-550-
01
81.86
HECK GEN 79960 TOTAL FOR
FUND 1:
189.50
Cip - Residential
401-916-
07
25.00
Cip - Residential
401-916-
07
150.00
HECK GEN 79961 TOTAL FOR
FUND 1:
175.00
11/14/2023
GEN
79962*
PREMIUM WATERS INC
OFFICE SUPPLIES -BOTTLED WATER
401-921-
08
11/14/2023
GEN
79963
PRO AUTO & TRANSMISSION REPAIR
Vehicles - Material
402-554-
01
11/14/2023
GEN
79965
KID EQUIPMENT
Power Equipment - Materials
402-598-
02
11/14/2023
GEN
79967*
ROBBIE PETERSON
Cip - Residential
401-916-
07
11/14/2023
GEN
79968
ROGER MACKEDANZ OR MARY LYNNE COX
OVERPAYMENTS
142-000-
00
11/14/2023
GEN
799704
RUNNING'S SUPPLY INC
Sales Tax Receivable - Replace
186-000-
00
Accessory Plant - Materials
402-554-
01
Maintenance Other - Materials
402-554-
01
HECK GEN 79970 TOTAL FOR FUND 1:
11/14/2023
GEN
79971
SARA GEISER
OVERPAYMENTS
142-000-
00
11/14/2023
GEN
79972
SC SUPPLY COMPANY, LLC
CONES, TRAFFIC, 28", ORANGE, BLACK
BASE 154-000-
00
11/14/2023
GEN
79973*
SHRED RIGHT
OFFICE SUPPLIES -SHREDDING SERVICES
401-921-
08
11/14/2023
GEN
79974
SNOW WHITE COTTAGES
OVERPAYMENTS
142-000-
00
11/14/2023
GEN
79976*
SURVALENT TECHNOLOGY, INC
Silver scada support plan
401-921-
08
11/14/2023
GEN
79977
THE ELEGANT EDGE
OVERPAYMENTS
142-000-
00
16.74
70.07
5,515.51
300.00
85.17
1.61
20.48
2.00
789.14
15.76
214.49
10,049.99
160.13
11/20/2023 02:29 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check # Payee
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 10/19/2023 - 11/20/2023
Description
Fund: 1 ELECTRIC
11/14/2023 GEN 79981 TOWN & COUNTRY FENCE
11/14/2023 GEN 79982 TRICIA SHEGGEBY
11/14/2023 GEN 79983* UNITED PARCEL SERVICE
11/14/2023 GEN 79984* VERIZON WIRELESS
11/14/2023 GEN 79985*4 WEST CENTRAL SANITATION INC
Account Dept
Page 11/20
Amount
Install Chain link around CT Ladder
107-341-
00
4,800.00
Cip - Residential
401-916-
07
1,200.00
MAIL SERVICES - UPS, FEDEX
401-921-
08
88.49
TELEPHONE
401-921-
08
1,069.66
GENERATOR 41 WATER & SEWER -INDUSTRIAL
401-547-
01
111.84
WASTE DISPOSAL-4TH AVE
401-550-
01
180.58
UTILITY ESP - WATER/WASTE 55/45-
401-930-
08
272.86
HECK GEN 79985 TOTAL FOR FUND 1:
565.28
Total for fund 1 ELECTRIC
472,726.56
11/20/2023 02:29
PM
CHECK DISBURSEMENT
REPORT FOR HUTCHINSON UTILITIES
Page 12/20
User: JMartig
CHECK DATE FROM
10/19/2023 - 11/20/2023
DE: Hutchinson
Utili
Check Date
Bank
Check #
Payee
Description
Account
Dept
Amount
Fund: 2 GAS
10/25/2023
GEN
79805
POPLAR GROVE FARMS LLC
M & R STATION EQUIPMENT
107-369-
00
1,000.00
10/30/2023
GEN
79807*
A R ENGH HEATHING AND AIR COND,
Grounds - Materials
401-935-
08
100.00
10/30/2023
GEN
79808*
AARON SHOWALTER
DEP REFUND/APPLIED
235-000-
00
84.00
10/30/2023
GEN
79809*4
ACE HARDWARE
Materials
401-874-
04
256.04
Materials
401-874-
04
27.77
Materials
402-892-
04
18.85
Materials
402-892-
04
11.95
HECK GEN 79809 TOTAL FOR
FUND 2:
314.61
10/30/2023
GEN
79811*
AMANDA BIJOLD
DEP REFUND/APPLIED
235-000-
00
127.75
10/30/2023
GEN
798134
ANIXTER INC
TAX & FREIGHT
401-874-
04
222.01
TAX & FREIGHT
401-874-
04
137.87
Belden 18ga/4C cable.
401-856-
05
1,259.11
Belden 18ga/2C cable.
401-856-
05
692.96
Belden 24ga/7C cable.
401-856-
05
545.68
HECK GEN 79813 TOTAL FOR
FUND 2:
2,857.63
10/30/2023
GEN
79814*
ARIANA DUNCAN
DEP REFUND/APPLIED
235-000-
00
63.00
10/30/2023
GEN
79815*
ASGH PROPERTIES LLC
DEP REFUND/APPLIED
235-000-
00
70.00
DEP REFUND/APPLIED
235-000-
00
96.25
HECK GEN 79815 TOTAL FOR
FUND 2:
166.25
10/30/2023
GEN
79817
AV8 FLIGHT SCHOOL
Line - Outside Services
401-856-
05
1,607.76
10/30/2023
GEN
79818*4
BORDER STATES ELECTRIC SUPPLY
PLUG, SQ HEAD, MALE THRD,
3/4", FORGED
154-000-
00
8.82
WIRE, 410 SOLID BARE CU, WITH 45 MILS
154-000-
00
770.00
TAX
401-874-
04
50.99
BATTERY, SIZE D
402-892-
04
82.80
HECK GEN 79818 TOTAL FOR
FUND 2:
922.61
10/30/2023
GEN
79819*
BROOKE MICKOLICHEK
DEP REFUND/APPLIED
235-000-
00
70.00
10/30/2023
GEN
79820*
BRUCE DANIELS
DEP REFUND/APPLIED
235-000-
00
77.00
11/20/2023 02:29 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 10/19/2023 - 11/20/2023
Payee Description
Account
Dept
Page 13/20
Amount
Fund: 2 GAS
10/30/2023
GEN
79821*
BRYAN BOYD
DEP REFUND/APPLIED
235-000-
00
80.50
10/30/2023
GEN
79822*
BUNNY BASSLER
DEP REFUND/APPLIED
235-000-
00
87.50
10/30/2023
GEN
79824*
CAROLYN ROSS
DEP REFUND/APPLIED
235-000-
00
35.00
10/30/2023
GEN
79825*4
CINTAS CORPORATION 4470
UNIFORMS & LAUNDRY
401-880-
04
99.59
10/30/2023
GEN
79829
DESIGN ELECTRIC, INC
Materials
401-856-
05
1,244.70
Utilities (Electric, Satellite
401-856-
05
1,005.24
HECK GEN 79829 TOTAL FOR FUND 2:
2,249.94
10/30/2023
GEN
79831*
DOUG MOULTON
DEP REFUND/APPLIED
235-000-
00
98.00
10/30/2023
GEN
79832*
ELISE PLATH
DEP REFUND/APPLIED
235-000-
00
112.00
10/30/2023
GEN
79833*
ERIK RIVERA
DEP REFUND/APPLIED
235-000-
00
38.50
10/30/2023
GEN
79834*
GAIL NELSON
DEP REFUND/APPLIED
235-000-
00
63.00
10/30/2023
GEN
79835*
GEORGE MCCONNELL OR MONICA
DEP REFUND/APPLIED
235-000-
00
28.00
10/30/2023
GEN
79840*4
HUTCHINSON WHOLESALE SUPPLY CO
Materials
402-892-
04
18.66
10/30/2023
GEN
79841*
JAKE CRUMB
DEP REFUND/APPLIED
235-000-
00
38.50
10/30/2023
GEN
79844*
KATIE KNAAK
DEP REFUND/APPLIED
235-000-
00
47.25
10/30/2023
GEN
79845*
KELLEY ESTES
DEP REFUND/APPLIED
235-000-
00
122.50
10/30/2023
GEN
79846*
KELLY BOLER
DEP REFUND/APPLIED
235-000-
00
26.25
10/30/2023
GEN
79847
KURTH WELDING & REPAIR
SERVICES
107-380-
00
201.00
10/30/2023
GEN
79848
LAKE SUPERIOR CONSULTING LLC
Outside Service - Painting
402-892-
04
3,113.57
11/20/2023 02:29
PM
CHECK DISBURSEMENT
REPORT FOR HUTCHINSON UTILITIES
Page 14/20
User: JMartig
CHECK DATE FROM
10/19/2023 - 11/20/2023
DE: Hutchinson
Utili
Check Date
Bank
Check #
Payee
Description
Account
Dept
Amount
Fund: 2 GAS
10/30/2023
GEN
79849*
LAURA BELLIS
DEP REFUND/APPLIED
235-000-
00
98.00
10/30/2023
GEN
79850*
LAURIE HAWKINS-BELDEN
DEP REFUND/APPLIED
235-000-
00
17.50
10/30/2023
GEN
79851
LIEN, MIKE
Training - Expense
401-870-
04
142.24
10/30/2023
GEN
79853*
LOGAN TEUBERT
DEP REFUND/APPLIED
235-000-
00
35.00
10/30/2023
GEN
79854
MAIERS, MATTHEW
Training - Expense
401-870-
04
133.02
10/30/2023
GEN
79855*
MARTIG, JARED
TRAINING - EXPENSE
401-930-
08
39.76
10/30/2023
GEN
79858
MRC GLOBAL
M & R STATION EQUIPMENT
107-369-
00
452.81
10/30/2023
GEN
798594
NELSON TECHNOLOGIES INC
EFM Building. 10' x 10' x 8' Eave
107-369-
00
10,000.00
Electrical Package (nonhazardous)
107-369-
00
1,500.00
TAX
401-874-
04
790.63
HECK GEN 79859 TOTAL FOR FUND 2:
12,290.63
10/30/2023
GEN
79860*
NICK TWISS
DEP REFUND/APPLIED
235-000-
00
21.00
10/30/2023
GEN
79861
NORTHERN STATES SUPPLY INC
Materials
401-874-
04
154.73
10/30/2023
GEN
798624
NOVASPECT INC
FB107 6 IT IO MODULE
107-370-
00
1,230.40
FREIGHT
401-874-
04
30.26
Materials
402-892-
04
1,674.41
Materials
402-892-
04
395.18
Materials
402-892-
04
3,801.75
HECK GEN 79862 TOTAL FOR FUND 2:
7,132.00
10/30/2023
GEN
79863*4
O'REILLY AUTOMOTIVE INC
Vehicles - Material
402-895-
04
302.62
10/30/2023
GEN
79864*
PAIGE SCHILLING
DEP REFUND/APPLIED
235-000-
00
98.00
10/30/2023
GEN
79865*4
PRO AUTO & TRANSMISSION REPAIR
Vehicles - Material
402-895-
04
481.02
Vehicles - Material
402-895-
04
224.12
HECK GEN 79865 TOTAL FOR FUND 2:
705.14
10/30/2023
GEN
79867*
RADKE, ANGIE
Training - Expense
401-930-
08
32.10
11/20/2023 02:29 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
User: JMartig CHECK DATE FROM 10/19/2023 - 11/20/2023
DE: Hutchinson Utili
Check Date Bank Check # Payee Description
Fund: 2 GAS
10/30/2023
GEN
79868*
RELIANCE STANDARD LIFE -LIFE
LTD INSURANCE-20o GAS
LIFE INSURANCE-20o GAS
HECK GEN 79868 TOTAL FOR FUND 2:
10/30/2023
GEN
79869*
RIVER HOUSE KITCHEN + DRINKS LLP
DEP REFUND/APPLIED
10/30/2023
GEN
79870*4
RUNNING'S SUPPLY INC
Grounds - Materials
10/30/2023
GEN
798714
RUSCH, BRYCE
Vehicle/Equipment Fuel
Public Awareness - Labor
HECK GEN 79871 TOTAL FOR FUND 2:
10/30/2023
GEN
79872
RUSCH, JUSTIN
Training - Expense
10/30/2023
GEN
79873*
RYLEE BENNETT OR MARC SALAZAR
DEP REFUND/APPLIED
10/30/2023
GEN
798744
SAGINAW CONTROL & ENGINEERING
WFLP Enclosure
Subpanel
FREIGHT
HECK GEN 79874 TOTAL FOR FUND 2:
10/30/2023
GEN
79875*
SETH RICE OR MASON TANK
10/30/2023
GEN
79876*
SHARON STORK
10/30/2023
GEN
79877*
SHRED RIGHT
10/30/2023
GEN
79880*
STUARDO SANCHEZ
10/30/2023
GEN
798814
TDW (US) INC
DEP REFUND/APPLIED
DEP REFUND/APPLIED
OFFICE SUPPLIES -SHREDDING SERVICES
DEP REFUND/APPLIED
36-2050-1206-30, Stopple Tee, 12" x
12313809, LOCK-O-RING, Ring Flow
Estimated Products Freight
TAX
HECK GEN 79881 TOTAL FOR FUND 2:
Account Dept
242-000- 00
242-000- 00
235-000- 00
401-935- 08
401-880- 04
401-856- 05
401-870- 04
235-000- 00
107-370- 00
107-370- 00
401-874- 04
235-000- 00
235-000- 00
401-921- 08
235-000- 00
107-369- 00
107-369- 00
107-369- 00
401-874- 04
10/30/2023 GEN 79882* TONY CHRISTIANSEN DEP REFUND/APPLIED 235-000- 00
Page 15/20
Amount
412.46
265.04
677.50
857.50
20.49
83.00
228.01
311.01
46.24
112.00
586.08
111.82
816.01
28.00
38.50
5.25
24.50
10,640.00
4,921.00
212.00
16,857.39
87.50
11/20/2023 02:29 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
User: JMartig CHECK DATE FROM 10/19/2023 - 11/20/2023
DE: Hutchinson Utili
Check Date Bank Check # Payee Description Account Dept
Fund: 2 GAS
10/30/2023
GEN
79883*
TORIN STEVENS
DEP REFUND/APPLIED
235-000-
00
10/30/2023
GEN
79884*
UNITED INFORMATION SERVICES, INC
COLLECTION - MATERIALS
401-903-
06
10/30/2023
GEN
79885*
VERIZON WIRELESS
TELEPHONE
401-921-
08
10/30/2023
GEN
79887*
WAYNE AAMODT
DEP REFUND/APPLIED
235-000-
00
10/30/2023
GEN
79889*
YESENIA BORJON
DEP REFUND/APPLIED
235-000-
00
11/14/2023
GEN
79891*4
ACE HARDWARE
COMMUNICATION EQUIPMENT
107-370-
00
Materials
402-892-
04
Materials
402-892-
04
Materials
402-892-
04
Other Equipment - Materials
402-895-
04
Grounds - Materials
401-935-
08
HECK GEN 79891 TOTAL FOR FUND 2:
11/14/2023 GEN 79894* AMERICAN PAYMENT CENTERS INC
11/14/2023 GEN 79895 ANDY ROHLIK
11/14/2023 GEN 79897 ARKEMA, INC
11/14/2023 GEN 79898 ARON BASAL
11/14/2023 GEN 79899* BIRCHDALE FIRE & SAFETY
11/14/2023 GEN 79901*4 BORDER STATES ELECTRIC SUPPLY
BOX RENTAL
401-903-
06
Cip - Residential
401-916-
07
Odorant
401-880-
04
Cip - Residential
401-916-
07
GROUNDS - OUTSIDE SERVICES
401-935-
08
GREASE, VALVE, VAL-TEX P/N
750-J
154-000-
00
TAPE, TEFLON, 1/2" X 260",
HIGH
154-000-
00
NIPPLE, 1/2" X 2", BM, STD,
SMLS, TEE
154-000-
00
COUPLING, ELECTROFUSION, 4"
IPS, MDPE,
154-000-
00
UNION, INSULATING, GRND JOINT,
CLASS
154-000-
00
METER BAR, AY MCDONALD CAST
IRON,
154-000-
00
TAX
401-874-
04
TAX
401-874-
04
TAX
401-874-
04
TAX
401-874-
04
TAX
401-874-
04
Page 16/20
Amount
22.75
1,639.52
78.04
26.25
28.00
3.21
9.18
5.33
19.18
49.31
160.44
41.84
350.00
7,737.49
350.00
96.42
219.65
19.60
6.56
141.66
69.88
1,417.60
15.10
1.80
9.74
4.80
97.46
11/20/2023 02:29 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check # Payee
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 10/19/2023 - 11/20/2023
Description
Fund: 2 GAS
11/14/2023
GEN
79903
BRAUN INTERTEC CORPORATION
11/14/2023
GEN
79904
BROWN COUNTY RURAL ELECTRIC
11/14/2023
GEN
79908
CENTURYLINK
11/14/2023
GEN
79909
CHERRYROAD MEDIA
11/14/2023
GEN
79910*
CHRISTINE CAVANAUGH
11/14/2023
GEN
79911
CINDY LARSON
11/14/2023 GEN 79912*4 CINTAS CORPORATION 4470
11/14/2023 GEN 79913*4 CITY OF HUTCHINSON
11/14/2023 GEN 79914 CRYSTEEL TRUCK EQUIPMENT
11/14/2023 GEN 79915* DAN ZENNER
11/14/2023 GEN 79917* DELORES OLSON
11/14/2023 GEN 79920 EHLERS & ASSOCIATES, INC
11/14/2023 GEN 79921*4 FASTENAL COMPANY
11/14/2023 GEN 79922* FIRST CHOICE FOOD & BEVERAGE
11/14/2023 GEN 79923*4 GOPHER STATE ONE -CALL INC
Account Dept
Page 17/20
Amount
HECK GEN 79901 TOTAL FOR FUND 2:
2,003.85
M & R STATION EQUIPMENT
107-369-
00
7,204.15
Utilities (Electric, Satellite
401-856-
05
159.76
Utilities (Electric, Satellite
401-856-
05
69.05
Public Awareness - Material
401-856-
05
95.00
Cip - Residential
401-916-
07
650.00
Cip - Residential
401-916-
07
300.00
UNIFORMS & LAUNDRY
401-880-
04
99.59
UNIFORMS & LAUNDRY
401-880-
04
99. 91
HECK GEN 79912 TOTAL FOR FUND 2:
199.50
VEHICLE/EQUIPMENT FUEL -GAS
401-880-
04
3, 094.54
VEHICLES/EQUIPMENT FUEL-ADMIN 55/45
401-935-
08
45.86
HECK GEN 79913 TOTAL FOR FUND 2:
3,140.40
Fiberline Fiberglass Utility Body with
107-392-
00
13,670.00
Transportation Equipment
107-392-
00
1,879.63
Transportation Equipment
107-392-
00
5,634.45
HECK GEN 79914 TOTAL FOR FUND 2:
21,184.08
Cip - Residential
401-916-
07
50.00
Cip - Residential
401-916-
07
350.00
Bond Service Fees
427-000-
08
475.00
Materials
402-892-
04
29.74
BREAKROOM/RECOGNITION BANQUET
401-926-
08
67.50
Materials
401-874-
04
240.97
Line - Outside Services
401-856-
05
43.20
HECK GEN 79923 TOTAL FOR FUND 2:
284.17
11/20/2023 02:29 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check # Payee
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 10/19/2023 - 11/20/2023
Description
Fund: 2 GAS
11/14/2023 GEN 79924 GREG EWING
11/14/2023 GEN 799254 HANSEN GRAVEL INC
11/14/2023 GEN 79927* HEALTH PARTNERS
11/14/2023 GEN 79928*4 HILLYARD/HUTCHINSON
11/14/2023 GEN 79929* HOLLY RUSTAD
11/14/2023 GEN 79930* HUTCHFIELD SERVICES
11/14/2023 GEN 79931 HUTCHINSON CO-OP
11/14/2023 GEN 79937* JOHNSON, LORI
11/14/2023 GEN 79940* KIM FREEMAN
11/14/2023 GEN 799414 KOONS GAS MEASUREMENT
11/14/2023 GEN 79944 LAKE SUPERIOR CONSULTING LLC
11/14/2023 GEN 79946 LINDA STACEY
11/14/2023 GEN 79947*4 LOCATORS & SUPPLIES INC
Account Dept
Page 18/20
Amount
Cip - Residential
401-916-
07
350.00
MAINS
107-376-
00
52.37
Materials
402-892-
04
376.20
HECK GEN 79925 TOTAL FOR FUND 2:
428.57
HEALTH INSURANCE-15o GAS
242-000-
00
8,853.09
Grounds - Materials
401-935-
08
308.33
Collection - Materials
401-903-
06
191.25
Grounds - Outside Services
401-935-
08
894.44
Vehicles - Material
402-895-
04
1,292.94
Meetings & Travel - Expense (S
401-903-
06
756.42
Cip - Residential
401-916-
07
350.00
Relief Valve for IRS 9.
107-378-
00
10,461.24
FREIGHT
401-874-
04
318.74
HECK GEN 79941 TOTAL FOR FUND 2:
10,779.98
Outside Service - Painting
402-892-
04
3,251.36
Outside Service - Painting
402-892-
04
5,157.02
HECK GEN 79944 TOTAL FOR FUND 2:
8,408.38
Cip - Residential
401-916-
07
325.00
PAINT, LOCATING, YELLOW (258),
154-000-
00
623.52
TAX & FREIGHT
401-874-
04
45.75
TAX & FREIGHT
401-874-
04
116.41
TAX & FREIGHT
401-874-
04
8.60
RAIN PANTS, 1501TFY, 2XL
401-880-
04
96.50
RAIN JACKET, 1503JFY, 2XL
401-880-
04
144.00
SAFETY VEST, FR,FM389Z, 2XL
401-880-
04
84.00
SAFETY VEST, FR,FM389Z, 3XL
401-880-
04
88.00
SAFETY GLASSES, GRAY, SILVER MIRROR,
401-880-
04
39. 90
11/20/2023 02:29 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check # Payee
Fund: 2 GAS
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 10/19/2023 - 11/20/2023
Description
11/14/2023 GEN 79948* MADDEN GALANTER HANSEN
11/14/2023 GEN 79950* MARCO TECHNOLOGIES, LLC
11/14/2023 GEN 79957 NORTHERN BORDER PIPELINE CO
11/14/2023 GEN 79958 NOVASPECT INC
11/14/2023 GEN 79959* NUVERA
11/14/2023 GEN 79960*4 OXYGEN SERVICE COMPANY INC
11/14/2023
GEN
79961*
PETER WHITE
11/14/2023
GEN
79962*
PREMIUM WATERS INC
11/14/2023
GEN
79964
PATH RACING, INC
11/14/2023
GEN
799664
RENEGADE ENERGY ADVISORS LLC
11/14/2023
GEN
79967*
ROBBIE PETERSON
11/14/2023
GEN
79969
RON PEDERSON
11/14/2023
GEN
79973*
SHRED RIGHT
11/14/2023
GEN
79975
SOUTH CENTRAL ELECTRIC ASS'N
11/14/2023
GEN
79976*
SURVALENT TECHNOLOGY, INC
11/14/2023
GEN
79978
THE JOURNAL
11/14/2023
GEN
79979
TOM BRADFORD
11/14/2023
GEN
79980
TOTAL COMPLIANCE SOLUTIONS INC
Account Dept
Page 19/20
Amount
HECK GEN 79947 TOTAL FOR FUND 2:
1,246.68
Legal Services
401-923-
08
513.07
OFFICE SUPPLIES
401-921-
08
173.89
LINE - OUTSIDE SERVICES -INTERCONNECT
401-856-
05
2,000.00
Materials
402-892-
04
77.17
TELEPHONE
401-921-
08
637.38
Materials
401-874-
04
107.64
Materials
401-874-
04
81.86
Materials
402-863-
05
1,293.24
HECK GEN 79960 TOTAL FOR FUND 2:
1,482.74
Cip - Residential
401-916-
07
400.00
OFFICE SUPPLIES -BOTTLED WATER
401-921-
08
5.58
M & R STATION EQUIPMENT
107-369-
00
85.00
M & R STATION EQUIPMENT
107-369-
00
5, 920.00
Line - Outside Services
401-856-
05
1,280.00
HECK GEN 79966 TOTAL FOR FUND 2:
7,200.00
Cip - Residential
401-916-
07
350.00
Cip - Residential
401-916-
07
350.00
OFFICE SUPPLIES -SHREDDING SERVICES
401-921-
08
5.25
UTILITIES (ELECTRIC, SATELLITE
401-856-
05
49.
00
It Admin And Support
401-921-
08
10,049.99
Public Awareness - Material
401-856-
05
369.00
Cip - Residential
401-916-
07
350.00
Materials
401-874-
04
160.00
11/20/2023 02:29 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
User: JMartig CHECK DATE FROM 10/19/2023 - 11/20/2023
DE: Hutchinson Utili
Check Date Bank Check # Payee Description
Fund: 2 GAS
11/14/2023 GEN 79983* UNITED PARCEL SERVICE MAIL SERVICES - UPS, FEDEX
11/14/2023 GEN 79984* VERIZON WIRELESS TELEPHONE
11/14/2023 GEN 79985*4 WEST CENTRAL SANITATION INC UTILITY ESP - WATER/WASTE 45/55-
Total for fund 2 GAS
TOTAL - ALL FUNDS
'*'-INDICATES CHECK DISTRIBUTED TO MORE THAN ONE FUND
'#'-INDICATES CHECK DISTRIBUTED TO MORE THAN ONE DEPARTMENT
Account Dept
Page 20/20
Amount
401-921- 08 29.50
401-921- 08 356.55
401-930- 08 223.25
161,232.21
633,958.77
HUTCHINSON UTILITIES COMMISSION
COMBINED DIVISIONS
FINANCIAL REPORT FOR OCTOBER, 2023
2023
2022
Di
%Chna
2023
2022
Di
%Chna
Full Yr Bud
%of Bud
Combined Division
Customer Revenue
$
2,700,908
$ 2,740,293
$ (39,385)
(1.4%)
$ 29,017,005
$ 31,526,880
$
(2,509,875)
(8.0%)
$ 38,930,509
74.5%
Sales for Resale
$
273,927
$ 485,585
$ (211,658)
(43.6%)
$ 4,487,873
$ 4,498,846
$
(10,973)
(0.2%)
$ 4,230,000
106.1%
NU Transportation
$
79,521
$ 108,246
$ (28,725)
(26.5%)
$ 883,412
$ 919,028
$
(35,616)
(3.9%)
$ 1,354,349
65.2%
Electric Division Transfer
$
59,960
$ 59,724
$ 236
0.4%
$ 599,598
$ 597,236
$
2,362
0.4 o
$ 719,517
83.3%
Other Revenues
$
46,185
$ 54,352
$ (8,167)
(15.0%
$ 457,507
$ 558,987
$
(101,480)
(18.2%)
$ 484,081
94.5%
Interest Income
$
81,261
$ 50,969
$ 30,292
59.4%
$ 859,902
$ 417,499
$
442,403
106.0%
$ 533,457
161.2%
TOTAL REVENUES
$
3,241,761
$ 3,499,168
$ (257,407)
(7.4%)
$ 36,305,297
$ 38,518,475
$
(2,213,178)
(5.7%)
$ 46,251,913
78.5%
Salaries & Benefits
$
488,574
$ 540,348
$ (51,774)
(9.58%)
$ 5,790,857
$ 5,593,501
$
197,356
3.5%
$ 7,510,583
77.1%
Purchased Commodities
$
1,433,273
$ 1,532,261
$ (98,988)
(6.5%)
$ 16,280,267
$ 17,817,052
$
(1,536,785)
(8.6%)
$ 21,566,760
75.5%
Transmission
$
291,227
$ 202,796
$ 88,431
43.6%
$ 2,604,597
$ 2,500,050
$
104,547
4.2%
$ 3,325,000
78.3%
Generator Fuel/Chem.
$
27,484
$ 146,770
$ (119,285)
(81.3%)
$ 1,270,970
$ 2,504,234
$
(1,233,264)
(49.2%)
$ 1,760,606
72.2%
Depreciation
$
356,576
$ 377,052
$ (20,476)
(5.4%)
$ 3,674,052
$ 3,779,301
$
(105,249)
(2.8%)
$ 4,400,000
83.5%
Transfers (Elect./City)
$
218,671
$ 215,323
$ 3,348
1.6%
$ 2,186,711
$ 2,153,229
$
33,482
1.6%
$ 2,624,053
83.3%
Operating Expense
$
212,068
$ 253,303
$ (41,235)
(16.3%)
$ 2,248,970
$ 2,668,382
$
(419,412)
(15.7%)
$ 3,209,835
70.1%
Debt Interest
$
65,534
$ 75,076
$ (9,542)
(12.7%)
$ 655,339
$ 750,755
$
(95,417)
12.7%
$ 786,406
83.3%
TOTAL EXPENSES
$
3,093,407
$ 3,342,928
$ (249,521)
(7.5%)
$ 34,711,762
$ 37,766,504
$
(3,054,742)
(8.1%)
$ 45,183,243
76.8%
NET PROFIT/(LOSS)
$
148,353
$ 156,239
$ (7,886)
(5.0%)l
1,593,534
$ 751,971
$
841,564
111.9%
$ 1,068,670
149.1%
October
October
YTD
YTD
2023 HUC
2023
2022
Change
2023
2022
Change
Budget Target
Gross Margin %:
34.3%
34.3%
0.0%
32.4%
29.4%
2.9%
31.3%
Operating Income Per Revenue $ (%):
3.3%
4.2%
-0.9%
3.1%
1.8%
1.3%
2.3%
Net Income Per Revenue $ (%):
4.6%
4.5%
0.1%
4.4%
2.0%
2.4%
2.3%
HUTCHINSON UTILITIES COMMISSION
ELECTRIC DIVISION
FINANCIAL REPORT FOR OCTOBER, 2023
2023
2022
Di .
Electric Division
Customer Revenue
$
1,837,412
$ 1,895,713
$
(58,300)
Sales for Resale
$
273,927
$ 485,585
$
(211,658)
Other Revenues
$
18,577
$ 26,872
$
(8,295)
Interest Income
$
42,024
$ 26,878
$
15,146
TOTAL REVENUES
$
2,171,940
$ 2,435,048
$
(263,108)
Salaries & Benefits $
Purchased Power $
Transmission $
Generator Fuel/Chem. $
Depreciation $
Transfers (Elect./City) $
Operating Expense $
Debt Interest $
TOTAL EXPENSES $
NET PROFIT/(LOSS) $
363,333 $ 413,064 $ (49,731)
928,776 $ 998,069 $ (69,293)
291,227 $ 202,796 $ 88,431
27,484 $ 146,770 $ (119,285)
266,212 $ 286,795 $ (20,583)
169,911 $ 167,519 $ 2,392
134,123 $ 208,481 $ (74,358)
37,738 $ 40,071 $ (2,333)
2,218,804 $ 2,463,564 $ (244,760)
864) $ (28,516
% Chna 2023 2022 Di .
(3.1%) $ 19,437,277 $ 21,058,689 $ (1,621,411)
(43.6%) $ 4,487,873 $ 4,498,846 $ (10,973)
(30.9%) $ 191,196 $ 262,443 $ (71,247)
56.4% $ 444,107 $ 222,725 $ 221,382
(10.8%)l $ 24,560,453 $ 26,042,702 $ (1,482,249)
(12.0%) $ 4,362,128 $ 4,242,945 $ 119,183
(6.9%) $ 10,239,217 $ 10,894,179 $ (654,962)
43.6% $ 2,604,597 $ 2,500,050 $ 104,547
(81.3%) $ 1,270,970 $ 2,504,234 $ (1,233,264)
(7.2%) $ 2,768,249 $ 2,868,125 $ (99,877)
1.4% $ 1,699,109 $ 1,675,188 $ 23,921
(35.7%) $ 1,534,566 $ 1,940,871 $ (406,305)
(5.8%) $ 377,380 $ 400,714 $ (23,333)
(9.9%) $ 24,856,215 $ 27,026,305 $ (2,170,091)
64.3% 5 (295,762) 5 (983,603) 5 687,841
2023 2022 Di . % Chna 1 2023 2022 Di .
% Chna
83.3% of Year Comp.
Full Yr Bud % of Bud
(7.7%)
$ 25,750,654
75.5%
(0.2%)
$ 4,230,000
106.1%
(27.1%)
$ 187,047
102.2%
99.4%
$ 283,457
156.7%
(5.7%)
$ 30,451,158
80.7%
2.8%
$ 5,465,303
79.8%
(6.0%)
$ 12,862,000
79.6%
4.2%
$ 3,325,000
78.3%
(49.2%)
$ 1,760,606
72.2%
(3.5%)
$ 3,300,000
83.9%
1.4%
$ 2,038,931
83.3%
(20.9%)
$ 1,954,789
78.5%
5.8%
$ 452,856
83.3%
(8.0%)
$ 31,159,485
79.8%
(69.9%)
$ (708,327)
41.8%
83.3% of Year Comp.
% Chna
Full Yr Bud
% of Bud
Electric Division
Residential
3,811,967
3,518,711
293,256
8.33%
45,709,213
44,978,390
730,823
1.62%
54,834,787
83.4%
All Electric
148,114
143,827
4,287
2.98%
1,986,800
2,170,033
(183,233)
(8.44%)
2,716,035
73.2%
Small General
1,366,580
1,342,596
23,984
1.79%
15,643,825
15,221,550
422,275
2.77%
18,332,200
85.3%
Large General
6,851,920
6,569,730
282,190
4.30%
67,888,120
71,077,700
(3,189,580)
(4.49%)
84,325,256
80.5%
Industrial
8,821,000
8,641,000
180,000
2.08%
91,040,000
97,569,000
(6,529,000)
(6.69%)
120,422,724
75.6%
Total KWH Sold
20,999,581
20,215,864
783,717
3.88%1
222,267,958
231,016,673
(8,748,715)
(3.79%)l
280,631,002
79.2%
October
October
YTD
YTD
2023
HUC
2023
2022
Change
2023
2022
Change
Budget
Target
Gross Margin %:
27.7%
29.2%
-1.5%
27.0%
24.1%
2.9%
26.7%
Operating Income Per Revenue $ (%):
-2.7%
-1.3%
-1.4%
-1.8%
-3.7%
1.9%
-1.9%
Net Income Per Revenue $ (%):
-2.2%
-1.2%
-1.0%
-1.2%
-3.8%
2.6%
-2.3%
Customer Revenue per KWH:
$0.0875
$0.0938
-$0.0063
$0.0874
$0.0912
-$0.0037
$0.0918
$0.0918
Total Power Supply Exp. per KWH:
$0.0731
$0.0837
-$0.0107
$0.0790
$0.0844
-$0.0054
$0.0786
$0.0786
Notes/Graphs:
Net Loss increased by $18,348 over October 2022 led by reduced Sales and Sales for Resale. Expenses were also down but not enough to offset the decreased
revenues. Sales decreased in large part due to a PCA in 2022 but not 2023. Transmission increased due to heat in early October leading to a higher peak.
Sales for Resale of $273,927 consisted of $29,677 in market sales, $98,000 in capacity sales to Rice Lake, and $146,250 in capacity sales to AEP. October 2022
Sales for Resale of $485,585 included $69,798 in market sales, $98,000 in capacity sales to Rice Lake, $146,250 in capacity sales to AEP and $171,537 in tolling
sales to Dynasty Power. October 2021 Sales for Resale of $379,976 consisted of $135,726 in market sales, $98,000 in capacity sales to Rice Lake, and $146,250 in
capacity sales to AEP.
Overall Purchased Power decreased by $69,293. MRES purchases decreased by $39,221 and market purchases/MISO costs decreased by $30,072.
The average cost of MISO power was $35.29/mwh (2,439 mwh's purchased), compared to $45.27/mwh (3,048 mwh's purchased) in October 2022.
Power Cost Adjustment for October 2023 was $.00000/kwhr bringing in $304,953 YTD.
Power Cost Adjustment for October 2022 was $.00691/kwhr bringing in $139,896 for the month and $1,283,470 YTD.
HUTCHINSON UTILITIES COMMISSION
GAS DIVISION
FINANCIAL REPORT FOR OCTOBER, 2023
2023
2022
2
%Chna
2023
2022
2
%Chna
Full YrBud
%of Bud
Gas Division
Customer Revenue
$
863,496
$ 844,580
$
18,916
2.2%
$ 9,579,727
$ 10,468,191
$ (888,464)
(8.5%)
$ 13,179,855
72.7%
Transportation
$
79,521
$ 108,246
$
(28,725)
(26.5%)
$ 883,412
$ 919,028
$ (35,616)
(3.9%)
$ 1,354,349
65.2%
Electric Div. Transfer
$
59,960
$ 59,724
$
236
0.4%
$ 599,598
$ 597,236
$ 2,362
0.4%
$ 719,517
83.3%
Other Revenues
$
27,608
$ 27,480
$
128
0.5%
$ 266,312
$ 296,544
$ (30,232)
(10.2%)
$ 297,034
89.7%
Interest Income
$
39,236
$ 24,090
$
15,146
62.9%
$ 415,795
$ 194,774
$ 221,022
113.5%
$ 250,000
166.3%
TOTAL REVENUES
$
1,069,820
$ 1,064,120
$
5,700
0.5%
$ 11,744,844
$ 12,475,773
$ (730,929)
(5.9%)
$ 15,800,755
74.3%
Salaries & Benefits
Purchased Gas
Operating Expense
Depreciation
Transfers (City)
Debt Interest
TOTAL EXPENSES
NET PROFIT/(LOSS)
$ 125,241
$ 127,285
$
(2,043)
(1.6%)
$ 1,428,729
$ 1,350,556
$ 78,173
5.8%
$ 2,045,280
69.9%
$ 504,497
$ 534,192
$
(29,695)
(5.6%)
$ 6,041,051
$ 6,922,873
$ (881,822)
(12.7%)
$ 8,704,760
69.4%
$ 77,944
$ 44,822
$
33,122
73.9%
$ 714,405
$ 727,512
$ (13,107)
(1.8%)
$ 1,255,046
56.9%
$ 90,364
$ 90,257
$
107
0.1%
$ 905,804
$ 911,176
$ (5,372)
(0.6%)
$ 1,100,000
82.3%
$ 48,760
$ 47,804
$
956
2.0%
$ 487,602
$ 478,041
$ 9,561
2.0%
$ 585,122
83.3%
$ 27,796
$ 35,004
$
(7,208)
0.0%
$ 277,958
$ 350,042
$ (72,083)
20.6%
$ 333,550
83.3%
$ 874,603
$ 879,364
$
(4,761)
(0.5%)
$ 9,855,548
$ 10,740,199
$ (884,651)
(8.2%)
$ 14,023,758
70.3%
$ 195,217
$ 184,756
$
10,462
5.7%
$ 1,889,296
$ 1,735,574
$ 153,722
8.9%
$ 1,776,997
106.3%
83.3% of Year Comp.
2023 2022 2 %Chnq I 2023 2022 2 %Chnq I Full YrBud %of Bud
Gas Division
Residential
22,601,337
22,917,220
(315,883)
(1.38%)
301,843,492
339,968,865
(38,125,373)
(11.21%)
449,212,000
67.2%
Commercial
21,448,675
20,491,718
956,957
4.67%
239,069,353
268,088,389
(29,019,036)
(10.82%)
350,057,000
68.3%
Industrial
65,721,113
74,100,291
(8,379,178)
(11.31%)
642,539,013
732,139,797
(89,600,784)
(12.24%)
919,535,000
69.9%
Total CF Sold
109,771,125
117,509,229
(7,738,104)
(6.59%)
1,183,451,858
1,340,197,051
(156,745,193)
(11.70%)
1,718,804,000
68.9%
October
October
YTD
YTD
2023 HUC
2023
2022
Change
2023
2022
Change
Budget Target
Gross Margin %:
48.2%
46.2%
2.0%
43.9%
40.8%
3.1%
40.4%
Operating Income Per Revenue $ (%):
15.9%
16.9%
-1.0%
13.8%
13.6%
0.2%
10.6% IIIIIIIIIIIIIIIIIIIIII
Net Income Per Revenue $ (%):
18.2%
17.4%
0.9%
16.1%
13.9%
2.2%
11.2% IIIIIIIIIIIIIIIIIIIIII
Contracted Customer Rev. per CF:
$0.0059
$0.0060
-$0.0001
$0.0064
$0.0062
$0.0002
$0.0063 IIIIIIIIIIIIIIII
Customer Revenue per CF:
$0.0103
$0.0089
$0.0014
$0.0099
$0.0095
$0.0004
$0.0091 M
Total Power Supply Exp. per CF:
$0.0048
$0.0047
$0.0001
$0.0053
$0.0053
($0.0000)
$0.0053 "' 1° muuuuuuuuuuuu
Notes/Graphs:
October Net Income increased by $10,462 due mostly to decreased gas purchases. Customer revenue was up slightly despite lower usage mostly due
to credits in October 2022.
There was no fuel cost adjustment for October 2023 and zero YTD.
October 2022 Fuel Credit was $1.42 resulting in $68,786 in credits going back to the customers for the month and $89,250 YTD.
Current Assets
UnrestrictedlUndesignated Cash
Cash
Petty Cash
Designated Cash
Capital Expenditures - Five Yr. CIP
Payment in Lieu of Taxes
Rate Stabilization - Electric
Rate Stabilization - Gas
Catastrophic Funds
Restricted Cash
Bond Interest Payment 2017
Bond Interest Payment 2012
Debt Service Reserve Funds
Total Current Assets
Receivables
Accounts (net of uncollectible allowances)
Interest
Total Receivables
Other Assets
Inventory
Prepaid Expenses
Sales Tax Receivable
Deferred Outflows - Electric
Deferred Outflows - Gas
Total Other Assets
Total Current Assets
Capital Assets
Land & Land Rights
Depreciable Capital Assets
Accumulated Depreciation
Construction - Work in Progress
Total Net Capital Assets
HUTCHINSON UTILITIES COMMISSION
BALANCE SHEET - CONSOLIDATED
OCTOBER 31, 2023
Electric
Gas
Total
Total
Net Change
Division
Division
2023
2022
Total (YTD)
4,643,923.74
11,328,963.20
15,972,886.94
17,667,465.52
(1,694,578.58)
680.00
170.00
850.00
850.00
-
2,750,000.00
700,000.00
3,450,000.00
3,450,000.00
-
1,319,414.00
585,122.00
1,904,536.00
1,867,192.00
37,344.00
660,909.48
-
660,909.48
395,204.99
265,704.49
-
626,564.78
626,564.78
607,452.34
19,112.44
800,000.00
200,000.00
1,000,000.00
1,000,000.00
-
1,557,856.73
-
1,557,856.73
1,542,023.36
15,833.37
-
1,811,895.87
1,811,895.87
1,760,854.18
51,041.69
522,335.64
2,188,694.02
2,711,029.66
2,711,029.66
-
12,255,119.59
17,441,409.87
29,696,529.46
31,002,072.05
(1,305,542.59)
2,064,952.34
933,640.95
2,998,593.29
3,147,997.83
(149,404.54)
59,141.99
59,142.00
118,283.99
94,415.01
23,868.98
2,124,094.33
992,782.95
3,116,877.28
3,242,412.84
(125,535.56)
1,892,967.61
511,842.18
2,404,809.79
2,166,861.86
237,947.93
(214,498.13)
16,733.83
(197,764.30)
134,459.88
(332,224.18)
305,214.01
-
305,214.01
202,066.33
103,147.68
1,221,397.00
-
1,221,397.00
1,630,746.00
(409,349.00)
-
407,133.00
407,133.00
543,582.00
(136,449.00)
3,205,080.49
935,709.01
4,140,789.50
4,677,716.07
(536,926.57)
17, 584, 294.41 19, 369, 901.83
690,368.40
3,899,918.60
112,482,525.76
42,872,726.46
(69,730,217.59)
(21,170,179.89)
2,043,482.81
769,270.76
4.5,486,159.38 26,371,735.93
36,954,196.24 38,922,200.96 (1,968,004.72)
4,590,287.00
4,590,287.00
-
155,355,252.22
154,034,961.91
1,320,290.31
(90,900,397.48)
(86,638,281.86)
(4,262,115.62)
2,812,753.57
1,590,884.40
1,221,869.17
71,857,895.31
73,577,851.45
(1,719,956.14)
Total Assets 63,070,453.79 45,741,637.76 108,812,091.55 112,500,052.41 (3,687,960.86)
HUTCHINSON UTILITIES COMMISSION
BALANCE SHEET - CONSOLIDATED
OCTOBER 31, 2023
Electric
Gas
Total
Total
Net Change
Division
Division
2023
2022
Total (YTD)
Current Liabilities
Current Portion of Long-term Debt
Bonds Payable
730,000.00
1,825,000.00
2,555,000.00
2,430,000.00
125,000.00
Bond Premium
-
185,608.32
185,608.32
185,608.32
-
Lease Liability - Solar Array
19,546.00
-
19,546.00
-
19,546.00
Accounts Payable
1,764,386.23
625,155.01
2,389,541.24
2,770,725.08
(381,183.84)
Accrued Expenses
Accrued Interest
188,690.10
138,979.15
327,669.25
375,377.65
(47,708.40)
Accrued Payroll
35,541.95
12,580.71
48,122.66
89,833.85
(41,711.19)
Total Current Liabilities
2,738,164.28
2,787,323.19
5,525,487.47
5,851,544.90
(326,057.43)
Long -Term Liabilities
Noncurrent Portion of Long-term Debt
2017 Bonds
13,300,000.00
-
13,300,000.00
14,030,000.00
(730,000.00)
2012 Bonds
-
5,955,000.00
5,955,000.00
7,780,000.00
(1,825,000.00)
Bond Premium 2012
471,185.52
386,683.63
857,869.15
1,076,934.43
(219,065.28)
Pension Liability- Electric
4,021,396.00
-
4,021,396.00
2,219,565.00
1,801,831.00
Pension Liability - Electric OPEB
77,480.00
-
77,480.00
94,162.00
(16,682.00)
Pension Liability- Nat Gas
-
1,340,466.00
1,340,466.00
739,855.00
600,611.00
Pension Liability - Nat Gas OPEB
-
25,827.00
25,827.00
31,387.00
(5,560.00)
Accrued Vacation Payable
514,998.51
185,601.83
700,600.34
595,141.98
105,458.36
Accrued Severance
109,985.36
30,300.18
140,285.54
123,254.85
17,030.69
Deferred Outflows - Electric
98,554.00
-
98,554.00
2,041,393.00
(1,942,839.00)
Deferred Outflows - Nat Gas
-
32,851.00
32,851.00
680,464.00
(647,613.00)
Total Long -Term Liabilities
18,593,599.39
7,956,729.64
26,550,329.03
29,412,157.26
(2,861,828.23)
Net Position
Retained Earnings
41,738,690.12
34,997,584.93
76,736,275.05
77,236,350.25
(500,075.20)
Total Net Position
41,738,690.12
34,997,584.93
76,736,275.05
77,236,350.25
(500,075.20)
Total Liabilities and Net Position 63,070,453.79 45,741,637.76 108,812,091.55 112,500,052.41 (3,687,960.86)
Hutchinson Utilities Commission
Cash -Designations Report, Combined
October 31, 2023
Change in
Financial
Annual
Balance,
Balance,
Cash/Reserve
Institution
Current Interest Rate
Interest
October 2023
September 2023
Position
Savings, Checking, Investments varies varies varies 29,696,529.46 29,999,069.06 (302,539.60)
Total Operating Funds 29,696,529.46 29,999,069.06 (302,539.60)
Debt Reserve Requirements Bond Covenants - sinking fund
Debt Reserve Requirements Bond Covenants -1 year Max. P & I
Total Restricted Funds
Operating Reserve
Rate Stabalization Funds
PILOT Funds
Catastrophic Funds
Capital Reserves
Total Designated Funds
Min 60 days of 2023 Operating Bud.
Charter (Formula Only)
Risk Mitigation Amount
5 Year CIP (2023-2027 Fleet & Infrastructure Maintenance)
3,369,752.60 3,091,302.08 278,450.52
2,711,029.66 2,711,029.66 -
6,080,782.26 5,802,331.74 278,450.52
6,797,207.17
6,797,207.17 -
1,287,474.26
1,197,731.90 89,742.36
1,904,536.00
1,904,536.00 -
1, 000, 000.00
1, 000, 000.00
3,450,000.00
3,450,000.00 -
14,439,217.43
14,349,475.07 89,742.36
YE
YE
YE
YE
YTD
HUC
2019
2020
2021
2022
2023
Target
Debt to Asset 34.9%
32.3%
30.8%
31.4%
29.5%
Current Ratio 5.11
5.67
5.22
4.47
5.31
RONA 2.25%
3.62%
0.41%
-1.38%
1.67%
Change in Cash Balance (From 12131114 to 1013112023)
Month End
Electric
Elec. Change
Natural Gas
Gas Change
Total
Total Change
10/31/2023
12, 255,120
17, 441, 410
29, 696, 529
12/31/2022
11,633,212
621,908
15,450,554
1,990,856
27,083,766
2,612,764
12/31/2021
12,870,253
(1,237,041)
15,086,000
364,554
27,956,253
(872,487)
12/31/2020
14,239,233
(1,368,981)
15,019,173
66,827
29,258,406
(1,302,153)
12/31/2019
12,124,142
2,115,092
13,837,040
1,182,133
25,961,181
3,297,225
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 Significant increase in cash balance is due to issuing bonds for the generator project.
Hutchinson Utilities Commission
Cash -Designations Report, Electric
October 31, 2023
Change in
Financial
Annual
Balance,
Balance,
Cash/Reserve
Institution
Current Interest Rate
Interest
October 2023
September 2023
Position
Savings, Checking, Investments varies varies
Total HUC Operating Funds
tiectric jI
Debt Restricted Requirements Bond Covenants - sinking fund
Debt Restricted Requirements Bond Covenants -1 year Max. P & I
Total Restricted Funds
Operating Reserve
Rate Stabalization Funds
PILOT Funds
Catastrophic Funds
Capital Reserves
Total Designated Funds
varies 29,696,529.46 29,999,069.06 (302,539.60)
29,696,529.46 29,999,069.06 (302,539.60)
Min 60 days of 2023 Operating Bud.
$400 K-$1.2 K
Charter (Formula Only)
Risk Mitigation Amount
5 Year CIP (2023-2027 Fleet & Infrastructure Maintenance)
1,557,856.73 1,459,285.38 98,571.35
522,335.64 522,335.64 -
2,080,192.37 1,981,621.02 98,571.35
4,643,247.50
4,643,247.50 -
660,909.48
623,857.35 37,052.13
1,319,414.00
1,319,414.00 -
800,000.00
800,000.00
2,750,000.00
2,750,000.00 -
10,173,570.98
10,136,518.85 37,052.13
YE
YE
YE
YE
YTD
APPA Ratio
HUC
2019
2020
2021
2022
2023
5K-10K Cust.
Target
Debt to Asset Ratio (* w/Gen.) 34.1%
32.6%
32.2%
34.8%
33.8%
39.8%
Current Ratio 5.26
6.18
5.70
4.96
5.22
3.75
RONA -0.4%
2.5%
-1.2%
-4.2%
-0.5%
NA
>0%
Notes/Graphs:
Cash decreased in large part due to three A/P check runs in October compared to the normal two along with PILOT payment.
Hutchinson Utilities Commission
Cash -Designations Report, Gas
October 31, 2023
Change in
Financial
Annual
Balance,
Balance,
Cash/Reserve
Institution
Current Interest Rate
Interest
October 2023
September 2023
Position
Savings, Checking, Investments varies varies
Total HUC Operating Funds
Debt Restricted Requirements Bond Covenants - sinking fund
Debt Restricted Requirements Bond Covenants -1 year Max. P & I
Total Restricted Funds
Operating Reserve
Rate Stabalization Funds
PILOT Funds
Catastrophic Funds
Capital Reserves
Total Designated Funds
varies 29,696,529.46 29,999,069.06 (302,539.60)
29,696,529.46 29,999,069.06 (302,539.60)
Min 60 days of 2023 Operating Bud.
$200K-$600K
Charter (Formula Only)
Risk Mitigation Amount
5 Year CIP (2023-2027 Fleet & Infrastructure Maintenance)
1, 811, 895.87 1, 632, 016.70 179, 879.17
2,188,694.02 2,188,694.02 -
4,000,589.89 3,820,710.72 179,879.17
2,153,959.67
2,153,959.67 -
626,564.78
573,874.55 52,690.23
585,122.00
585,122.00 -
200,000.00
200,000.00
700,000.00
700,000.00 -
4,265,646.45
4,212,956.22 52,690.23
YE
YE
YE
YE
YTD
HUC
2019
2020
2021
2022
2023
AGA Ratio
Target
Debt to Asset 36.1%
32.0%
28.8%
26.5%
23.5%
35%-50%
Current Ratio 4.96
5.18
4.79
4.06
5.37
1.0-3.0
RONA 6.4%
5.3%
2.9%
3.0%
4.9%
2%-5%
Notes/Graphs:
HUTCHINSON UTILITIES COMMISSION
Investment Report
For the Month Ended October 31, 2023
Interest
Current
Date of
Date of
Par
Current
Purchase
Unrealized
Premium
Next
Institution
Description
Rate
YTM
Purchase
Maturity
Value
Value
Amount
Gain/(Loss)
(Discount)
Call Date
Wells Fargo
Money Market
4.900%
4.900%
NA
NA
-
131,980.03
-
-
-
N/A
Wells Fargo
FHLB
4.750%
4.750%
02/01/2023
02/01/2024
1,000,000.00
997,800.00
1,000,000.00
(2,200.00)
-
N/A
Wells Fargo
FFCB
4.250%
4.250%
12/20/2022
12/20/2024
1,000,000.00
986,350.00
1,000,000.00
(13,650.00)
-
N/A
Wells Fargo
FFCB
4.000%
4.000%
40/10/2023
03/10/2025
580,000.00
568,829.20
580,000.00
(11,170.80)
-
N/A
Wells Fargo
FHLB
5.000%
5.000%
05/31/2023
11/26/2025
1,000,000.00
987,620.00
1,000,681.44
(13,061.44)
681.44
02/26/2024
Wells Fargo
FHLB
0.400%
0.587%
01/29/2021
01/29/2026
295,000.00
267,948.50
295,000.00
(27,051.50)
-
01/29/2024
Wells Fargo
FHLB
0.400%
0.525%
02/09/2021
02/09/2026
470,000.00
425,444.00
470,000.00
(44,556.00)
-
02/09/2024
Wells Fargo
FHLB
0.750%
1.432%
04/29/2021
04/29/2026
400,000.00
372,140.00
400,000.00
(27,860.00)
-
12/29/2023
Wells Fargo
FHLB
0.650%
1.069%
06/30/2021
06/30/2026
300,000.00
271,371.00
300,000.00
(28,629.00)
-
12/30/2023
Wells Fargo
FHLB
0.700%
1.281%
09/30/2021
09/30/2026
250,000.00
225,690.00
250,000.00
(24,310.00)
-
12/30/2023
Wells Fargo
CD's
2.550%
2.550%
06/17/2022
12/18/2023
245,000.00
244,098.40
245,000.00
(901.60)
-
N/A
Wells Fargo
CD's
0.300%
0.300%
01/08/2021
01/08/2024
245,000.00
242,677.40
245,000.00
(2,322.60)
-
N/A
Wells Fargo
CD's
0.450%
0.450%
04/14/2021
04/15/2024
245,000.00
239,475.25
245,000.00
(5,524.75)
-
02/14/2024
Wells Fargo
CD's
2.800%
2.800%
06/17/2022
06/17/2024
245,000.00
240,854.60
245,000.00
(4,145.40)
-
N/A
Wells Fargo
CD's
0.550%
0.550%
08/02/2021
08/05/2024
245,000.00
235,692.45
245,000.00
(9,307.55)
-
N/A
Wells Fargo
CD's
4.800%
4.800%
11/16/2022
11/15/2024
245,000.00
242,790.10
245,000.00
(2,209.90)
-
N/A
Wells Fargo
CD's
1.100%
1.100%
01/31/2022
01/31/2025
245,000.00
231,527.45
245,000.00
(13,472.55)
-
01/31/2024
Wells Fargo
CD's
1.600%
1.600%
02/23/2022
02/24/2025
245,000.00
232,416.80
245,000.00
(12,583.20)
-
N/A
Wells Fargo
CD's
4.650%
4.650%
04/12/2023
04/07/2025
245,000.00
241,516.10
245,000.00
(3,483.90)
-
N/A
Wells Fargo
CD's
4.650%
4.650%
40/14/2023
04/14/2025
245,000.00
241,457.30
245,000.00
(3,542.70)
-
N/A
Wells Fargo
CD's
3.100%
3.100%
06/15/2022
06/16/2025
245,000.00
235,307.80
245,000.00
(9,692.20)
-
N/A
Wells Fargo
CD's
3.100%
3.100%
06/15/2022
06/16/2025
245,000.00
235,307.80
245,000.00
(9,692.20)
-
N/A
Wells Fargo
CD's
3.300%
3.300%
08/26/2022
08/26/2025
245,000.00
234,994.20
245,000.00
(10,005.80)
-
N/A
Wells Fargo
CD's
1.000%
1.000%
05/19/2021
05/19/2026
245,000.00
219,667.00
245,000.00
(25,333.00)
-
N/A
Wells Fargo
CD's
1.000%
1.000%
07/28/2021
07/28/2026
245,000.00
217,988.75
245,000.00
(27,011.25)
-
N/A
Wells Fargo
CD's
1.050%
1.050%
08/08/2021
08/25/2026
238,000.00
212,012.78
238,000.00
(25,987.22)
-
N/A
Wells Fargo
CD's
1.000%
1.207%
07/31/2021
07/13/2028
245,000.00
203,460.25
245,000.00
(41,539.75)
12/13/2023
Broker Total
49.7%
9,453,000.00
9,186,417.16
9,453,681.44
(399,244.31)
681.44
Cetera Investment Services
Money Market
0.600%
0.600%
N/A
N/A
-
56,841.54
-
-
-
N/A
Cetera Investment Services
Municipal Bonds
3.400%
3.148%
12/20/2018
11/01/2023
125,000.00
125,000.00
126,376.25
(1,376.25)
1,376.25
N/A
Cetera Investment Services
Municipal Bonds
3.400%
3.148%
12/20/2018
11/01/2023
65,000.00
65,000.00
65,715.65
(715.65)
715.65
N/A
Cetera Investment Services
Municipal Bonds
2.854%
3.173%
12/20/2018
02/01/2024
100,000.00
99,238.00
99,605.96
(367.96)
(394.04)
N/A
Cetera Investment Services
Municipal Bonds
2.977%
3.246%
12/20/2018
03/15/2024
250,000.00
247,590.00
248,743.99
(1,153.99)
(1,256.01)
N/A
Cetera Investment Services
Municipal Bonds
1.940%
1.821%
01/13/2020
05/01/2024
65,000.00
63,787.75
65,570.70
(1,782.95)
570.70
N/A
Cetera Investment Services
Municipal Bonds
5.742%
3.658%
04/11/2019
08/01/2024
100,000.00
100,115.00
109,960.00
(9,845.00)
9,960.00
N/A
Cetera Investment Services
Municipal Bonds
5.000%
4.253%
02/09/2023
08/15/2024
270,000.00
268,963.20
279,454.50
(10,491.30)
9,454.50
N/A
Cetera Investment Services
Municipal Bonds
2.400%
2.908%
08/05/2022
08/15/2024
50,000.00
48,777.00
50,070.17
(1,293.17)
70.17
N/A
Cetera Investment Services
Municipal Bonds
2.402%
2.926%
08/05/2022
10/01/2024
125,000.00
121,462.50
124,674.19
(3,211.69)
(325.81)
N/A
Cetera Investment Services
Municipal Bonds
2.033%
4.794%
06/05/2023
10/01/2024
85,000.00
82,268.10
82,332.21
(64.11)
(2,667.79)
Make -Whole Call
Cetera Investment Services
Municipal Bonds
5.200%
4.710%
02/21/2023
11/01/2024
30,000.00
29,894.10
30,711.27
(817.17)
711.27
N/A
Cetera Investment Services
Municipal Bonds
4.000%
4.689%
05/19/2023
12/01/2024
50,000.00
49,139.50
50,428.33
(1,288.83)
428.33
N/A
Cetera Investment Services
Municipal Bonds
2.528%
1.918%
01/13/2020
12/01/2024
100,000.00
96,667.00
102,999.53
(6,332.53)
2,999.53
N/A
Cetera Investment Services
Municipal Bonds
1.319%
4.407%
09/26/2022
12/01/2024
50,000.00
47,734.50
47,238.35
496.15
(2,761.65)
N/A
Cetera Investment Services
Municipal Bonds
3.922%
3.429%
12/20/2018
12/01/2024
204,000.00
199,410.00
208,181.10
(8,771.10)
4,181.10
N/A
Cetera Investment Services
Municipal Bonds
3.375%
4.693%
06/05/2023
03/01/2025
260,000.00
252,353.40
256,618.05
(4,264.65)
(3,381.95)
Make -Whole Call
Cetera Investment Services
Municipal Bonds
2.092%
4.793%
08/04/2023
05/01/2025
190,000.00
180,914.20
182,543.32
(1,629.12)
(7,456.68)
NA
Cetera Investment Services
Municipal Bonds
4.415%
4.516%
02/21/2023
05/01/2025
60,000.00
59,066.40
59,907.79
(841.39)
(92.21)
N/A
Cetera Investment Services
Municipal Bonds
4.400%
3.221%
04/11/2019
07/01/2025
500,000.00
486,845.00
539,101.11
(52,256.11)
39,101.11
07/01/2024
Cetera Investment Services
Municipal Bonds
0.824%
4.678%
01/09/2023
08/01/2025
100,000.00
92,374.00
91,160.64
1,213.36
(8,839.36)
N/A
Cetera Investment Services
Municipal Bonds
5.640%
3.007%
04/18/2019
08/15/2025
205,000.00
184,139.20
169,737.95
14,401.25
(35,262.05)
N/A
Cetera Investment Services
Municipal Bonds
3.743%
2.740%
04/18/2019
09/15/2025
215,000.00
208,616.65
228,334.53
(19,717.88)
13,334.53
N/A
Cetera Investment Services
Municipal Bonds
3.379%
1.934%
08/19/2019
10/01/2025
310,000.00
295,916.70
339,739.18
(43,822.48)
29,739.18
N/A
Cetera Investment Services
Municipal Bonds
2.727%
2.271%
03/03/2022
12/01/2025
335,000.00
311,935.25
342,781.72
(30,846.47)
7,781.72
N/A
Cetera Investment Services
Municipal Bonds
5.600%
1.186%
07/28/2020
12/01/2025
45,000.00
45,174.15
55,250.55
(10,076.40)
10,250.55
N/A
Cetera Investment Services
Municipal Bonds
4.250%
3.258%
04/11/2019
01/01/2026
500,000.00
484,205.00
529,769.03
(45,564.03)
29,769.03
N/A
Cetera Investment Services
Municipal Bonds
2.420%
1.175%
10/06/2020
03/01/2026
100,000.00
92,587.00
106,734.28
(14,147.28)
6,734.28
N/A
Cetera Investment Services
Municipal Bonds
1.609%
1.124%
09/24/2020
04/01/2026
285,000.00
259,820.25
292,370.10
(32,549.85)
7,370.10
N/A
Cetera Investment Services
Municipal Bonds
6.690%
3.356%
04/18/2019
04/15/2026
60,000.00
51,633.60
47,545.20
4,088.40
(12,454.80)
N/A
Cetera Investment Services
Municipal Bonds
5.900%
1.451%
07/28/2020
06/15/2026
75,000.00
75,819.75
93,741.75
(17,922.00)
18,741.75
N/A
Cetera Investment Services
Municipal Bonds
0.000%
1.415%
08/13/2020
07/01/2026
100,000.00
85,210.00
92,037.00
(6,827.00)
(7,963.00)
N/A
Cetera Investment Services
Municipal Bonds
3.250%
2.903%
04/18/2019
08/01/2026
500,000.00
469,920.00
514,790.69
(44,870.69)
14,790.69
N/A
Cetera Investment Services
Municipal Bonds
2.116%
3.307%
06/07/2022
08/01/2026
75,000.00
68,835.75
71,565.00
(2,729.25)
(3,435.00)
N/A
Cetera Investment Services
Municipal Bonds
2.150%
2.203%
07/01/2019
12/01/2026
40,000.00
36,741.20
40,150.64
(3,409.44)
150.64
N/A
Interest
Current
Date of
Date of
Par
Current
Purchase
Unrealized
Premium
Next
Institution
Description
Rate
YTM
Purchase
Maturity
Value
Value
Amount
Gain/(Loss)
(Discount)
Call Date
Cetera
Investment Services
Municipal Bonds
1.664%
1.150%
08/27/2020
09/01/2026
225,000.00
201,370.50
231,696.00
(30,325.50)
6,696.00
N/A
Cetera
Investment Services
Municipal Bonds
2.375%
1.816%
09/04/2019
12/01/2026
90,000.00
82,318.50
93,395.70
(11,077.20)
3,395.70
N/A
Cetera
Investment Services
Municipal Bonds
2.350%
2.191 %
07/01/2019
12/01/2026
500,000.00
458,325.00
505,385.00
(47,060.00)
5,385.00
N/A
Cetera
Investment Services
Municipal Bonds
3.000%
1.991%
08/19/2019
02/01/2027
50,000.00
46,605.50
53,551.00
(6,945.50)
3,551.00
N/A
Cetera
Investment Services
Municipal Bonds
3.150%
2.034%
08/1 9/201 9
03/15/2027
100'000.00
93,034.00
109,138.50
(16,104.50)
9,138.50
N/A
Cetera
Investment Services
Municipal Bonds
3.332%
3.120%
04/1 8/201 9
04/15/2027
500,000.00
469,255.00
507,783.94
(38,528.94)
7,783.94
N/A
Cetera
Investment Services
Municipal Bonds
3.865%
2.470%
08/1 9/201 9
05/01/2027
55,000.00
53,773.50
60,986.48
(7,212.98)
5,986.48
05/01/2025
Cetera
Investment Services
Municipal Bonds
3.553%
2.289%
08/1 9/201 9
05/01/2027
55:000.00
51:700.55
60:468.04
(8,767.49)
5:468.04
05/01/2026
Cetera
Investment Services
Municipal Bonds
3.230%
1.828%
08/1 9/201 9
05/15/2027
145,000.00
134,768.80
160,827.31
(26,058.51)
15,827.31
N/A
Cetera
Investment Services
Municipal Bonds
1.925%
1.719%
11/23/2021
06/01/2027
310,000.00
272,583.00
313,447.46
(40,864.46)
3,447.46
Make -Whole Call
Cetera
Investment Services
Municipal Bonds
1.861%
1.254%
06/07/2021
07/01/2027
410,000.00
361,017.30
412,336.71
(51,319.41)
2:336.71
N/A
Cetera
Investment Services
Municipal Bonds
3.000%
3.101%
05/18/2020
09/01/2027
65,000.00
61,161.10
69,180.58
(8,019.48)
4,180.58
09/01/2025
Cetera
Investment Services
Municipal Bonds
2.817%
2.817%
09/25/2019
10/01/2027
35,000.00
28,265.30
27,969.55
295.75
(7,030.45)
05/01/2025
Cetera
Investment Services
Municipal Bonds
1.415%
1.793%
11/23/2021
03/01/2028
100,000.00
85,699.00
98,088.31
(12,389.31)
(1,911.69)
N/A
Cetera
Investment Services
Municipal Bonds
3.270%
2.141%
08/19/2019
03/15/2028
155:000.00
141:899.40
170,805.09
(28,905.69)
15,805.09
09/15/2027
Cetera
Investment Services
Municipal Bonds
2.974%
2.574%
11/07/2019
04/01/2028
75,000.00
67,909.50
77,253.00
(9,343.50)
2,253.00
N/A
Cetera
Investment Services
Municipal Bonds
2.125%
1.904%
11/23/2021
06/01/2028
110,000.00
94,286.50
111,525.06
(17,238.56)
1,525.06
N/A
Cetera
Investment Services
Municipal Bonds
2.547%
1.240%
08/10/2021
07/01/2028
125:000.00
110,856.25
136,101.16
(25,244.91)
11,101.16
N/A
Cetera
Investment Services
Municipal Bonds
3.140%
2.004%
OS/19/2019
08/01/2028
500,000.00
451,225.00
547,105.00
(95,880.00)
47,105.00
08/01/2027
Cetera
Investment Services
Municipal Bonds
3.000%
2.199%
05/19/2020
08/15/2028
90,000.00
83,787.30
95,401.80
(11,614.50)
5,401.80
08/15/2025
Cetera
Investment Services
Municipal Bonds
1.692%
1.813%
11/24/2021
10/01/2028
180,000.00
149,931.00
179, 18%4
(29,257.74)
(811.26)
N/A
Cetera
Investment Services
Municipal Bonds
3.000%
1.942%
08/19/2019
06/01/2029
115:000.00
102:437.40
125:961.80
(23,524.40)
10,961.80
N/A
Cetera
Investment Services
Municipal Bonds
4.000%
3.214%
03/22/2021
09/01/2031
60,000.00
54,774.00
64,292.00
(9,518.00)
4,292.00
09/01/2024
Cetera
Investment Services
Municipal Bonds
3.500%
2.699%
11/23/2021
02/01/2033
50:000.00
45:716.00
54:390.44
(8,674.44)
4:390.44
02/01/2025
Cetera
Investment Services
Municipal Bonds
3.250%
2.655%
08/1 9/201 9
06/01/2029
75,000.00
68,993.25
79,860.31
(10,867.06)
4,860.31
02/01/2025
Cetera
Investment Services
Municipal Bonds
3.125%
2.303%
11/23/2021
10/01/2034
50,000.00
44,172.00
54,773.69
(10,601.69)
4:773.69
04/01/2027
Cetera
Investment Services
Municipal Bonds
3.125%
2.456%
11/23/2021
OZ01/2035
50,000.00
43,128.50
54,236.11
(11,107.61)
4,236.11
OZ01/2026
Broker Total
50.3%
9,899,000.00
9,302,988.84
10,201,089.51
(954,942.21)
302,089.51
TOTAL INVESTMENTS
100.0%
$ 19,352,000.00 $
18,489,406.00 $
19,654,770.95
$ (1,354,186.52) $
302,770.95
ELECTRIC DIVISION
Operating Revenue
October 2023
CLASS
AMOUNT
KWH
/KWH
Street Lights
$23.55
432
$0.05451
Electric Residential Service
$423,103.09
3,811,967
$0.11099
All Electric Residential Service
$16,617.18
148,114
$0.11219
Electric Small General Service
$141,585.34
1,366,580
$0.10361
Electric Large General Service
$612,221.12
6,851,920
$0.08935
Electric Large Industrial Service
$643,861.98
8,821,000
$0.07299
Total
$1,837,412.26
21,000,013
$0.08750
Power Adjustment $0.00000
Rate Without Power Adjustment $0.08750
Electric Division Year -to -Date
M2023 $A--t 02022 $A--t ■2023 KWH110 02022 KWH110
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
Street Lights Residential All Elec. Small Gen. Large Gen. Large For Resale Total
Resid. Srv. Srv. Industrial
NOTE: Sales for resale includes capacity sales and energy for resale
NATURAL GAS DIVISION
Operating Revenue
OCTOBER 2023
CLASS
AMOUNT
MCF
/$ MCF
Residential
$255,771.06
22,601
$11.31680
Commercial
$209,428.93
21,449
$9.76404
Large Industrial
$41,784.25
5,165
$8.08988
Large Industrial Contracts
$356,511.69
60,556
$5.88731
Total
$863,495.93
109,771
$7.86634
Fuel Adjustment $0.00000
Rate Without Fuel Adjustment $7.86634
Natural Gas Division Year -to -Date
® 2023 $ Amount 0 2022 $ Amount ■ 2023 MCF 13 2022 MCF
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
Gas Residential Gas Commercial Large Industrial Large Industrial Total
Contracts
Monthly Report - Hutchinson Utilities
Hutchinson Utilities Commission
Commission
Year Minimum duration Substation
2023 v
IEEE 1366 Statistics
Metric
Oct 2023
Oct 2022
SAI DI
0.131
None
SAI FI
0.00161
None
CAIDI
81.666
None
ASAI
99.9996%
100%
Momentary Interruptions
0
0
Sustained Interruptions
2
0
Circuit Ranking - Worst Performing
Ranked by Outage Count
Circuit Substation Number of Outages
Fdr#14 Plant 1 1
Fdr#15 Plant 1 1
Ranked by Customer Interruptions
Circuit Substation Customer Interruptions
Fdr#15 Plant 1 10
Circuit Substation Customer Interruptions
Fdr#14 Plant 1
Ranked by Customer Minutes of Duration
Circuit Substation Customer Minutes of Duration
Fdr#15 Plant 1 770
Fdr#14 Plant 1 210
Historical Monthly SAIDI Chart
2.5
2.0
1.5
1.0
0.5
0.0
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
2022 2022 2023 2023 2023 2023 2023 2023 2023 2023 2023 2023
Historical Monthly SAIFI Chart
0.12
0.10
0.08
0.06
0.04
0.02
0.00
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
2022 2022 2023 2023 2023 2023 2023 2023 2023 2023 2023 2023
3AID1
of monthly SAIDI values
SAIFI
of monthly SAIFI values
Causes Ranked by Count
Count
Underground
Equipment Worn Out
Causes Ranked by Duration
Cause Duration
Equipment Worn Out 770
Underground 210
Top 2 Outages for the Month
Customers Customer Minutes of
Address Interrupted Duration Interruption Start Date
635 Grove St SW 10 77 770 10/07/2023
WWTP and 2 105 210 10/02/2023
Armory
Total Customers Affected for the Month: 12
Average Customers Affected per Outage: 6
I rG...)w( klr)C:I Strong CornrrurIihe-,,+
101 M1 4 11
Electric Production
Work
Total
Total
order Description
Materials Labor
Budgeted
Actual
Difference
12203 Plant 2 Air Dryer
$
29,705.92
$
29,705.92
12204 Cooling Tower Repairs
$
315,370.33
$
315,370.33
12206 Plant 2 Unilux Boiler
$
146,102.00
$
146,102.00
12301 Plant 2 Ladder Access
225,000.00
$
225,000.00
214,094.96
$
(10,915.04)
12302 Plant 2 Power Gates
60,000.00
$
60,000.00
2,137.50
$
(57,862.50)
12303 Plant 1 Tuck Pointing
140,000.00
$
140,000.00
166,687.67
$
26,687.67
12304 SWCIS Computer Upgrade U5
400,000.00
$
400,000.00
$
(400,000.00)
12305 Plant 1 Side Stream Filter
30,000.00
$
30,000.00
$
(30,000.00)
12306 Cooling Tower Drain Valves Plant 1
80,000.00
$
80,000.00
$
(80,000.00)
12307 Cooling Tower Recirculation
120,000.00
$
120,000.00
$
(120,000.00)
12308 Unit 1 Repairs
- -
$
-
$ -
$
$ 1,055,000.00 $ -
$
1,055,000.00
$ 874,088.38
$
(180,911.62)
Electric Distribution
Work
Total
Total
Order
Description
Materials,
Labor
Budgeted
Actual
Difference
22203
Plant 1 Sub SCADA Relays
-
-
218,509.55
$
218,509.55
22204
3M Sub SCADA
-
-
-
116,177.70
$
116,177.70
22213
EV Charging Station Transformer
-
12,872.12
$
12,872.12
22301
Hutch Sub Transformer Upgrade Engineering
200,000.00
200,000.00
43,515.63
$
(156,484.37)
22302
Pole Repair and Replacement
15,000.00
15,000.00
$
(15,000.00)
22303
Station Equipment
10,000.00
10,000.00
$
(10,000.00)
22304
HTI Sub SCADA
125,000.00
125,000.00
$
(125,000.00)
22305
Right of Way Clearing
15,000.00
15,000.00
7,648.79
$
(7,351.21)
22306
Install Duct
18,000.00
65,000.00
83,000.00
68,904.34
$
(14,095.66)
22307
Feeder 16 Reconductor
42,000.00
75,000.00
117,000.00
99,728.41
$
(17,271.59)
22308
APR Development (North of 202nd Circle NW)
15,000.00
7,000.00
22,000.00
380.96
$
(21,619.04)
22309
New Developments
60,000.00
60,000.00
66,414.17
$
6,414.17
22310
APR Development (North of 202nd Circle NW)
8,000.00
2,000.00
10,000.00
$
(10,000.00)
22311
Transformer Replacements
48,000.00
14,000.00
62,000.00
3,087.91
$
(58,912.09)
22312
Transformer New Development
60,000.00
60,000.00
2,790.57
$
(57,209.43)
22313
Meters
36,000.00
36,000.00
29,328.74
$
(6,671.26)
22314
Roberts Road Lights
15,000.00
15,000.00
4,146.84
$
(10,853.16)
22315
LED Conversion
175,000.00
35,000.00
210,000.00
9,690.67
200,309.33
$ 842,000.00 $ 198,000.00 $ 1,040,000.00 $ 683,196.40 $ (356,803.60)
Administrative
Total
Total
Work Order
Description ion
Budeeted
Actual
Difference
52103
Natural Gas Service Truck
$ -
$ 92,965.66
$ (92,965.66)
52201
EV Fast Charger
51,019.00
(51,019.00)
52203
Replace 037 Dump Truck
74,000.00
74,000.00
52204
Replace 130
57,004.36
(57,004.36)
52205
Replace 948
84,000.00
84,000.00
52206
Paint Booth
28,727.52
(28,727.52)
52301
International 4900 w/Altec
310,000.00
-
310,000.00
52302
Replace 995 2010 Dodge Dakota
35,000.00
-
35,000.00
52303
Replace 226 2012 Dodge RAM 1500
55,000.00
-
55,000.00
52304
Single Reel Trailer
20,000.00
21,220.99
(1,220.99)
52305
Underground Locator
7,500.00
-
7,500.00
52306
2023 Chevy Silverado 1500
-
45,803.40
-
$ 585,500.00
$ 296,740.93
$ (288,759.07)
Work
Order Description
62201 2 12" Valves, Vacuum Purging, Pigging Lat Lin(
62301 HCP Interconnect
62302 RNG Interconnect
62303 Fairfax Interconnect Downsize
62304 SCADA for HCP Interconnect
62305 SCADA for RNG Interconnect
62306 Misc Developments & System Improvements
62307 City Projects
62308 50 psig Imp Project- Distribution Main
62309 Isolated Main Replacement
62310 Improvements to Regulator Stations
62311 50 psig Improvement Project- DRS
62312 Service Lines
62313 Meters, AMI, and All Fittings
62314 Residential Regulators
62315 Industrial Metering and Regulation
62316 CP AMI Monitors, AMI Pressure Monitors
Natural Gas
Total
Total
Materials
Labor
Budgeted
Actual
Difference
-
-
-
258,612.93
258,612.93
875,000.00
3,000.00
878,000.00
94,404.50
(783,595.50)
950,000.00
4,000.00
954,000.00
-
(954,000.00)
65,000.00
1,000.00
66,000.00
-
(66,000.00)
27,500.00
3,000.00
30,500.00
10,079.50
(20,420.50)
27,500.00
3,000.00
30,500.00
-
(30,500.00)
50,000.00
10,000.00
60,000.00
6,050.23
(53,949.77)
15,000.00
3,000.00
18,000.00
7,492.01
(10,507.99)
700,000.00
3,000.00
703,000.00
-
(703,000.00)
27,500.00
5,000.00
32,500.00
-
(32,500.00)
20,000.00
5,000.00
25,000.00
-
(25,000.00)
275,000.00
1,000.00
276,000.00
-
(276,000.00)
57,000.00
15,000.00
72,000.00
48,782.03
(23,217.97)
165,000.00
4,000.00
169,000.00
33,014.62
(135,985.38)
9,000.00
9,000.00
4,546.30
(4,453.70)
25,000.00
3,500.00
28,500.00
29,097.90
597.90
50,000.00
3,000.00
53,000.00
-
(53,000.00)
$ 3,338,500.00 $ 66,500.00 $ 3,405,000.00 $ 492,080.02 $ (2,912,919.98)
,c,«
HUTCHINSON UTILITIES COMMISSION
Board Action Form
f tit
W
Agenda Item: Review Policies
Presenter: Angie Radke
Agenda Item Type:
Time Requested (Minutes): 5
Review Policies
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA 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. CIP Rebate Level of Authority
ii. Delegation of Authority Policy
iii. Financial Reserve Policy
iv. Service Beyond City Limits of Hutchinson
v. Surplus Property Policy
BOARD ACTION REQUESTED:
None
Fiscal Impact
Included in current budget: Budget Change:
PROJECTSECTION:
Total Project Cost: Remaining Cost:
Adopted January 27, 2010
Conservation Improvement Program — Rebate Level of Authority
All commercial and industrial Conservation Improvement Program rebates in the amount
of $25,000 or greater shall be reviewed and approved by Hutchinson Utilities Commission
prior to the issuance of the rebate to the recipient.
Adopted July 31, 2013
Amended June 27, 2018
Delegation of Authority
From time to time the General Manager will be absent.
In the absence of the General Manager and when the situation warrants, every
effort to contact the General Manager will be made. If the efforts are unsuccessful
and the situation still exists, the General Manager's full authority will be delegated
to the Natural Gas Division Director.
If the Natural Gas Director is absent or cannot be contacted and the situation still
exists, the General Manager's full authority is delegated collectively to the
Department Managers; Transmission and Distribution, Engineering Services,
Production, Financial/Customer Service. When authority has been delegated, the
General Manager will be informed, as soon as is possible and practical, of any
actions taken or decisions made by the respective director or managers.
HUTCHINSON UTILITIES FINANCIAL RESERVE POLICY
A. PURPOSE:
In order to maintain stable rates and provide reliable service, Hutchinson Utilities Commission (HUC) must
have various tools in place to deal with changes in costs or operational performance. Maintaining
appropriate financial reserves is one such tool that ensures sufficient funding is available for current
operating, capital and debt service needs. Financial reserves absorb short-term financial variability resulting
from unexpected operational changes or can reduce the need for large amounts of debt. This policy
establishes a Capital Reserve (CR), which is used to cover acquisition of capital assets, including replacement
of existing assets, and an Operating Reserve (OR), which addresses short-term financial volatility. HUC will
establish a Capital Reserve and Operating Reserve for each of the two utilities — Electric and Gas.
B. DEFINITIONS:
Hutchinson Utilities Commission reserves can be classified into three broad categories that include
Restricted Cash Reserves, Capital Reserve Funds, and Operating Reserve Funds. A "fund" is a segregation
within the Utility's accounting system to keep sources and uses for a particular purpose easily identifiable
and reportable.
C. GENERAL PROVISIONS
In the context of funding future capital equipment or facilities or replacing existing assets with substantial
value HUC will analyze the most cost effective and efficient method to finance a project, be it through debt
financing, pay -as -you go financing, use of reserves, use of contractual agreements, or through some
combination of those various sources or others that may present themselves.
At a minimum, reserve balances will be reviewed on an annual basis at, or near, the end of the fiscal year
during preparation of the Capital & Operating Spending Plans to ensure adequate compliance with policy
and intended funding targets. The minimum funding requirements established for each fund represents the
baseline financial condition that is acceptable to the Commission from a risk and long-range financial
planning perspective. Maintaining reserves at appropriate levels is a prudent, ongoing business process that
consists of an assessment and application of various revenue generating alternatives. These alternatives
(either alone or in combination with each other) include, but are not limited to: fees & charges, capital
financing, investment of funds, contractual commitments, and levels of capital expenses.
I. RESTRICTED RESERVES MR) - Restrictions on these monies are imposed by an outside source such
as creditors, grantors, contributors, laws or regulations governing use. An example of restricted funds
is bond reserve covenants required as a part of debt issuance. The funds are legally protected by
bond covenants and can only be used in the event of default by HUC or to pay down principal at
maturity.
A. Funding Amount — The bond reserve requirements are established at the time of bond
issuance.
B. The sources of funds for the (RR) come from the undesignated fund balance of each utility
which can change annually based on yearly operating performance and accumulated net
revenues and, when appropriate, available short-term liquidity arrangements.
11. CAPITAL RESERVES (CR) - This reserve is established by action of the board to fund capital projects
including electric and gas distribution & transmission system infrastructure, production facilities, and
fleet that are a part of the 5-year capital improvement plan so HUC can avoid issuing bonds to pay
for maintaining normal operations. This reserve is not intended to fund large major capital purchases.
(i. e ... Fleet, infrastructure replacement or acquisitions)
A. Funding Amount —Minimum funding shall be targeted at the estimated current replacement
costs of assets expected to be replaced within the next five years.
B. Funding Sources — The sources of funds for the (CR) come from the undesignated fund
balance of each utility which can change annually based on yearly operating performance and
accumulated net revenues and, when appropriate, available short-term liquidity
arrangements.
111. OPERATING RESERVES (OR) — This reserve is established by action of the board to address short-
term financial risk or variability resulting from unexpected operating results and to address those
financial risks that have a more immediate potential impact on the existing organization cost
structure. (i.e... Rate Stabilization Reserve Funds, Catastrophic Reserve Funds, PILOT Reserve Funds,
Operating Reserves)
A. Risk Exposures — Potential sources of cash flow variability addressed by the (OR) include the
following risk exposures:
1. Reductions in overall customer demand,
2. Changes in total system load resulting from the actions of large customers,
3. Failure to achieve the budgeted level of net income,
4. Changes in the costs of purchased power,
5. Catastrophic disasters or community events
6. General operation exposures, such as timing mismatch between revenue receipts
and expense payment, unforeseen maintenance costs, regulatory compliance
costs, and other unexpected increases in the operating budget
B. Funding Amount —Target (OR) level has been set at a minimum of 60 days and a maximum of
90 days of total budgeted operating expenses for both the Electric Division and Gas Division.
Since the (OR) changes annually for each division based on the following years budget, the
(OR) will be adjusted annually. The (OR) target is in addition to the other operating reserve
funds listed above.
C. Funding Sources — The sources of funds for the (OR) come from the undesignated fund
balance of each utility which can change annually based on yearly operating performance and
accumulated net revenues and, when appropriate, available short-term liquidity
arrangements.
IV. FINANCIAL RESERVES HIERARCHY OF FUNDING — The following lists the priorities applied to HUC's
reserves.
A. Maintaining Operating Reserves (OR) within a 60 day to 90 day operating range.
B. Once the Target (OR) level is achieved, excess cash may be applied to the (CR) or other areas
at the discretion of the Hutchinson Utilities Commission.
V. FINANCIAL RESERVES REPLENISHMENT— The above section describes the hierarchy of funding the
reserves. The following describes what actions may be taken to generate cash and replenish the
reserves under different scenarios of each of the two utilities.
A. If the (OR) and (CR) are at the Target Level: Take no action
B. If either the (OR) or (CR) is below the Target Level or if both the (OR) and (CR) are below the
Target Level: Take no action during the current year, reevaluate the following year and
reduce expenses and/or increase revenues, if necessary, to reach the Target Level within the
next three years.
VI. FINANCIAL RESERVES FUNDING LEVEL AND FUND BALANCE REVIEWS — The Target levels and fund
balance are to be reviewed as follows:
A. Target Level Review: Although the actual monetary values are reviewed annually and
adjusted to reflect target goals when approving budgets, the Target (OR) and (CR) funding
levels are to be evaluated every year. For example, the Commission could revise (reduce or
increase) the (OR) or (CR) reserves based on future external factors and forward -looking cost
drivers.
B. Financial Reserves Fund Balance Review: The (OR) and (CR) fund balances are to be monitored
monthly by the Finance Department and reviewed annually during the budget review process
by the Commission or if an event were suddenly to reduce the fund balances.
HUTCHINSON UTILITIES COMMISSION
NATURAL GAS
SERVICE BEYOND THE
CITY LIMITS OF
HUTCHINSON
DISTRIBUTION MAIM EXTENSION POLICY
THIS DOCUMENT SETS FORTH THE PROCEDURES TO BE OBSERVED WHEN
EXTENDING A NATURAL GAS DISTRIBUTION MAIN BEYOND THE CITY LIMITS OF
HUTCHINSON.
HUTCHINSON UTILITIES COMMISSION
DISTRIBUTION MAIN EXTENSION POLICY
SERVICE BEYOND CITY LIMITS OF HUTCHINSON
1. DEFINITIONS
NATURAL GAS DISTRIBUTION MAIN
NATURAL GAS DISTRIBUTION MAIN IS DEFINED AS THAT PORTION OF THE
HUC'S NATURAL GAS PIPING AND RELATED FACILITIES WHICH ARE
INTENDED TO PROVIDE SERVICE TO MORE THAN A SINGLE CUSTOMER.
SUCH PIPING IS NORMALLY LOCATED IN PUBLIC STREETS AND ITS RIGHT-
OF-WAY OR ADJACENT TO PROPERTY LINES.
2. INDIVIDUAL REQUESTS FOR GAS MAIN EXTENSION
A. APPLICATION
PROSPECTIVE CUSTOMERS CURRENTLY WITHOUT NATURAL GAS
SERVICE MAY REQUEST SUCH SERVICE BY SUBMITTING A WRITTEN
APPLICATION TO HUTCHINSON UTILITIES COMMISSION (HUC).
HUC SHALL INVESTIGATE THE POSSIBILITY OF INSTALLING GAS
MAIN TO THE CUSTOMER AND SHALL MAKE AN ESTIMATE OF THE
COSTS INVOLVED.
HUC IS UNDER NO OBLIGATION TO EXTEND NATURAL GAS SERVICE
BEYOND THE CITY LIMITS OF HUTCHINSON, MN.
B. ALLOWANCES
EACH CUSTOMER SHALL RECEIVE A CONSTRUCTION ALLOWANCE
BASED ON PROJECTED MARGINAL REVENUE.
1) RESIDENTIAL CUSTOMERS - $9 1 5.00
2) FIRM COMMERCIAL CUSTOMERS
ALLOWANCE FOR MAIN SHALL BE BASED ON CUSTOMER'S
ESTIMATED ANNUAL REVENUE USING THE FOLLOWING
FORMULA (BASED ON SEVEN YEAR RECOVERY):
ALLOWANCE = $(U x M) x 7
PAGE 1 OF 5
WHERE:
U = ESTIMATED LONG TERM ANNUAL, USAGE IN MCF
M = APPLICABLE MARGIN PER MCF
MONTHLY "METER CHARGE" NOT CONSIDERED IN
CALCULATING CUSTOMER ALLOWANCE AS THIS IS A FIXED
COST TO HUC.
C. CUSTOMER CONTRIBUTIONS
A CONTRIBUTION SHALL BE REQUIRED IF THE ESTIMATED
CONSTRUCTION COST OF MAIN EXCEEDS THE MAIN ALLOWANCE(S)
FOR THE CUSTOMER(S) REQUESTING THE EXTENSION. THIS
PAYMENT IS DUE AS A SINGLE PAYMENT PRIOR TO THE
INSTALLATION OF THE MAIN. HOWEVER, IF A RESIDENTIAL
CUSTOMER'S CONTRIBUTION FOR MAIN EXCEEDS $300.00, THE
CUSTOMER, WITH THE APPROVAL OF HUC, MAY ELECT TO MAKE A
SINGLE PAYMENT BEFORE CONSTRUCTION BEGINS OR AGREE TO
PAY THE CONTRIBUTION IN TWELVE (1 2) EQUAL INSTALLMENTS,
INCLUDING A FINANCE CHARGE BASED ON HUC'S CURRENT
WEIGHTED COST OF CAPITAL. THESE INSTALLMENTS SHALL BE
BILLED WITH THE UTILITY BILL AND BE PAYABLE ON THE SAME DATE
AS THE UTILITY BILL. ALL CONTRIBUTIONS SHALL BE REFUNDABLE
IN ACCORDANCE WITH SECTION 3. OF THIS SCHEDULE.
3. REAPPORTIONMENT AND REFUNDS OF CONTRIBUTIONS
A. REAPPORTIONMENT OF CUSTOMER CONTRIBUTION
WHEN ADDITIONAL CUSTOMERS TAKE SERVICE FROM A MAIN
EXTENSION WHICH HAD REQUIRED A CUSTOMER CONTRIBUTION,
THE ORIGINAL CONTRIBUTION AND ANY NEW CONTRIBUTION WILL
BE REAPPORTIONED AMONG ALL CUSTOMERS ON THE EXTENSION IF
THE REAPPORTIONMENT DOES NOT CAUSE AN INCREASE IN ANY
EXISTING CUSTOMER'S CONTRIBUTION. IF THE REAPPORTIONMENT
CALCULATION WOULD CAUSE AN INCREASE TO ANY CUSTOMER'S
CONTRIBUTION, THE PORTION OF NEW MAIN FACILITIES UNDER
CONSIDERATION WILL BE CONSIDERED AS SEPARATE AND NEW GAS
MAIN EXTENSION SUBJECT TO ALL THE GAS EXTENSION RULES.
B. REFUNDS OF CUSTOMERS WITH NO ADDITIONAL CONTRIBUTION
THE HUC SHALL MAKE REFUNDS TO THE CUSTOMER(S) OR
DEVELOPER WHO MADE THE CONTRIBUTIONS) TOWARD THE
EXTENSION OF MAIN FOR A PERIOD OF FIVE (5) YEARS FROM THE
INSTALLATION DATE.
WHEN THE HUC CONNECTS NEW CUSTOMERS TO THIS PORTION
OF MAIN EXTENSION, THE REFUND SHALL BE EQUAL TO THE
CHANGE IN THE CUSTOMER CONTRIBUTION VALUE AFTER
PAGE 2OF5
REAPPORTIONING THE CONTRIBUTION USING THE ALLOWANCE IN
EFFECT AT THE TIME THE EXTENSION WAS INSTALLED.
WHEN THE HUC MAKES AN EXTENSION OF MAIN TO SUBSEQUENT
CUSTOMER(S) THAT DOES NOT REQUIRE A CONTRIBUTION FROM
THE SUBSEQUENT CUSTOMER(S), THE REFUND SHALL, BE EQUAL, TO
THE CHANGE IN THE CUSTOMER ALLOWANCE IN EFFECT AT THE
TIME THE ORIGINAL EXTENSION WAS INSTALLED AND THE
ALLOWANCE IN EFFECT FOR THE NEW FACILITIES LESS THE
CONSTRUCTION COSTS OF ALL MAIN.
C. SINGLE CUSTOMER PAYMENT OF CONTRIBUTION
IF AN INDIVIDUAL CUSTOMER AGREES IN WRITING BEFORE THE MAIN
EXTENSION IS INSTALLED TO PAY THE TOTAL REQUIRED
CONTRIBUTION, THAT CUSTOMER SHALL BE ELIGIBLE FOR ALL MAIN
ALLOWANCE REFUNDS FROM ALL SUBSEQUENT CUSTOMERS ON
THE EXTENSION DURING THE REFUND PERIOD. SUCH A WRITTEN
AGREEMENT WILL THEREBY PRECLUDE ANY REAPPORTIONMENT OF
THE CONTRIBUTION AMONG SUBSEQUENT CUSTOMERS.
1) IF A FURTHER MAIN EXTENSION OFF THE ORIGINAL EXTENSION
IS REQUIRED TO SERVE A SUBSEQUENT CUSTOMER AND THE
MAIN COST IS LESS THAN THE TOTAL MAIN ALLOWANCE
AVAILABLE, THE UNUSED ALLOWANCE SHALL BE REFUNDED TO
THE CUSTOMER WHO MADE THE SINGLE PAYMENT
CONTRIBUTION OUTLINED ABOVE.
2) IF A FURTHER MAIN EXTENSION OFF THE ORIGINAL EXTENSION
IS REQUIRED TO SERVE A SUBSEQUENT CUSTOMER AND THE
MAIN COSTS EXCEEDS THE TOTAL MAIN ALLOWANCE
AVAILABLE, THE SUBSEQUENT CUSTOMERS SHALL PAY THE
CONTRIBUTION FOR THE NEW FACILITIES.
4. RIGHT TO REFUND
THE RIGHT TO RECEIVE A REFUND OF ANY CONTRIBUTION HELD
HEREUNDER WILL ATTACH TO THE OWNERSHIP OF THE PREMISES FOR
WHICH THE ORIGINAL EXTENSION WAS MADE. ANY REFUND SHALL BE
MADE TO THE PERSON WHO OWNS SUCH PREMISES) AT THE TIME THE
REFUND IS PAID UNLESS THE CONTRIBUTOR HAS RESERVED THE RIGHT
TO RECEIVE SUCH REFUND IN THE CONVEYANCE OF THE PREMISES) TO
A SUBSEQUENT OWNER AND DEMONSTRATES THAT TO THE HUC.
IN THE CASE OF A DEVELOPER MAKING A CONTRIBUTION TO EXTEND GAS
INTO A DEVELOPMENT, THE RIGHT TO RECEIVE A REFUND SHALL ATTACH
TO THE OWNER OF THE DEVELOPMENT AT THE TIME THE REFUND
BECOMES DUE, UNLESS, IN THE CONVEYANCE OF THE DEVELOPMENT,
THE DEVELOPER PROVIDES THE HUC WITH A WRITTEN AGREEMENT
RESERVING THE RIGHT TO RECEIVE SUCH REFUNDS.
PAGE 3OF5
IN NO CASE SHALL THE TOTAL REFUND(S) EXCEED THE AMOUNT OF THE
CONTRIBUTION.
J. CLEARING RIGHTS AND COSTS
CUSTOMER REQUESTING SERVICE SHALL FURNISH, WITHOUT EXPENSE
TO THE HUC, RIGHT-OF-WAY, EASEMENTS, PERMITS AND ADDITIONAL
COSTS INCURRED TO PROVIDE ADEQUATE CLEARING FOR THE MAIN
EXTENSION TO SERVE THE CUSTOMER ALONG A ROUTE APPROVED BY
THE HUC AFTER CONSULTING WITH THE CUSTOMER.
IF REQUESTED BY THE CUSTOMER, THE HUC WILL DO THE CLEARING AT
CUSTOMER'S EXPENSE. THE CUSTOMER SHALL PAY THE HUC THE
ESTIMATED COST OF CLEARING TO BE DONE BY THE HUC. COSTS WILL
BE ADJUSTED TO ACTUAL COSTS UPON COMPLETION OF THE JOB.
6. TITLE
THE TITLE TO ALL DISTRIBUTION MAIN EXTENSIONS MADE BY THE HUC
HEREUNDER REMAINS WITH THE HUC. THE HUC MAY AT ANY TIME ADD
ADDITIONAL CUSTOMERS TO OR MAKE NEW EXTENSIONS TO AN EXISTING
EXTENSION WITHOUT THE CONSENT OF ANY CUSTOMER OR CUSTOMERS
WHO CONTRIBUTED TO THE COST OF THE EXISTING EXTENSION, AND
WITHOUT INCURRING ANY LIABILITY FOR REFUNDING CONTRIBUTIONS
OTHER THAN AS PROVIDED HEREIN.
%. CONSTRUCTION STANDARDS
ALL NATURAL GAS DISTRIBUTION SYSTEM EXTENSIONS CONSTRUCTED
HEREUNDER SHALL CONFORM TO THE HUC'S STANDARDS OF
CONSTRUCTION, AND SHALL MEET THE REQUIREMENTS OF
GOVERNMENTAL REGULATORY BODIES HAVING JURISDICTION.
8. GENERAL PROVISIONS
A. IF IN THE HUC'S SOLE JUDGMENT THE HUC NEEDS AN EASEMENT
OVER CUSTOMER'S PROPERTY IN ORDER TO FURNISH SERVICE TO
CUSTOMER, CUSTOMER SHALL PROVIDE HUC WITH AN EASEMENT
AT NO EXPENSE TO HUC. IF IN THE HUC'S SOLE JUDGMENT HUC
NEEDS AN EASEMENT OR EASEMENTS OVER PROPERTY NOT OWNED
BY CUSTOMER IN ORDER TO FURNISH SERVICE TO CUSTOMER,
CUSTOMER SHALL OBTAIN THE EASEMENT(S) AT NO EXPENSE TO
HUC.
B. NO STRUCTURES SHALL BE PLACED OVER THE ROUTE OF THE
HUC'S NATURAL GAS FACILITIES. HOWEVER, SUCH PROPERTY MAY
BE USED FOR GARDENS AND OTHER PURPOSES WHICH WILL NOT
INTERFERE WITH MAINTENANCE AND REPLACEMENT OF HUC'S
NATURAL GAS FACILITIES.
C. PROPERTIES SUBJECT TO AN EASEMENT GRANTED TO HUC SHALL
BE GRADED TO A LEVEL WHICH SHALL NOT BE ABOVE OR MORE
PAGE 4OF5
THAN 6 INCHES BELOW FINISHED GRADE, PRIOR TO THE TIME
INSTALLATION OF NATURAL GAS FACILITIES IS COMMENCED BY
HUC. THE HUC SHALL BE NOTIFIED IN ADVANCE OF ANY CHANGES
IN GRADE AFTER THE NATURAL GAS FACILITIES HAVE BEEN
INSTALLED BY HUC, AND HUC SHALL BE REIMBURSED FOR ANY
AND ALL COSTS INCURRED AS A RESULT OF SUCH CHANGE.
D. HUC SHALL NOT BE LIABLE FOR DAMAGE TO TREES, SHRUBS,
FENCES, SIDEWALKS, DRIVEWAYS OR OTHER OBSTRUCTIONS
INCIDENTAL TO THE INSTALLATIONS, MAINTENANCE OR
REPLACEMENT OF NATURAL GAS FACILITIES, UNLESS SUCH
DAMAGE IS CAUSED BY ITS OWN NEGLIGENCE.
PAGE 5OF5
Amended November 25, 2020
Policy on Disposal of Surplus Property
DISPOSAL OF EXCESS PROPERTY
DECLARATION OF SURPLUS; SALE AUTHORIZATION.
The General Manager may, from time to time, recommend to the Hutchinson Utilities
Commission that certain personal property (chattels) owned by the Hutchinson Utilities
Commission is no longer needed for utility purpose and should be sold. By action of the
Commission, this property shall be declared surplus, the value estimated and the
General Manager authorized to dispose of that property in the manner stated
herein.
SURPLUS VALUED UNDER $5,000
The General Manager may sell surplus property with a fair market value of less than
$5,000 through negotiated sale. Surplus personal computers greater than three years
old may be donated directly to public schools in the city.
SURPLUS VALUED OVER $5,000
The General Manager shall offer for public sale, to the highest bidder, surplus property
with a fair market value over $5,000. Notice of the public sale shall be given stating time
and place of sale and generally describing the property to be sold at least ten days prior
to the date of sale by publication once in the official newspaper. The sale shall be to the
person submitting the highest bid.
EXCEPTIONS
Surplus property may be transferred or sold to other state agencies or government
units or eligible non-profit organizations in accordance with state law without regard to the
requirements of this policy.
DISPOSITION OF PROCEEDS
All receipts from sales of surplus property under this policy shall be placed in the fund
from which it was purchased.
PERSONS INELIGIBLE TO PURCHASE
HUTCHINSON UTILITIES EMPLOYEES
No Utilities officer, manager, or Commissioner or an advisor serving the Utilities in a
professional capacity may be purchaser of property under this policy. Other employees
may purchase property of the Utility if the property is sold through a competitive bidding
process that is open to the public.
PROHIBITED PURCHASES
It is unlawful for any person to be a purchaser of property under this policy if that
purchase is prohibited by the terms of this policy.
HUTCHINSON UTILITIES COMMISSION
f tit
,c�,«
Board Action Form
Agenda Item: Approve Policy Changes
ie Radke
Approve Policy Changes
es
BACKGROUND/EXPLANATION OFAGENDA ITEM:
As part of HUC's standard operating procedures, a continual policy review is
practiced. The following revisions to the policies below are recommended.
i. Payments of HUC Payables
ii. Purchasing Policy/Credit Cards/Fixed Assets
iii. Investment Policy
iv. Petty Cash — Exempt and Non -Exempt
BOARD ACTION REQUESTED:
Approve Policy Changes
Amended November 239, 20223
Policy on Payments of Hutchinson Utilities Commission Payables
The Hutchinson Utilities Commission Accountant and Financial Manager are hereby
authorized to issue warrant(s) drawn from the proper funds.
(Resolution 153 was amended on March 25, 2009 and reads as follows):
Resolution 153 authorizes HUC Accountant or HUC Financial Manager to transfer funds
by wire or other electronic means.
Claims shall be paid upon proper presentation during the year 023202 .
This policy shall be reviewed on an annual basis.
Amended 44
3oveiirriiilbeuir 29, 3()33
POLICY ON PURCHASING
State Statute 471.345
Hutchinson Utilities Commission hereby adopts a general policy on the purchasing of
equipment, supplies and services.
Inventory Agent is authorized to create requisitions and approve purchase orders for
purchases associated with Hutchinson Utilities' standard inventory part numbers, which
are based on set order points and order quantities.
If requirements exceed current order quantities, either an approved Bill of Materials or an
approved requisition will be required.
All other purchases shall require supervisor permission. Emergency situations may
require a deviation from this policy to ensure electric and/or natural gas services to the
customers of the Hutchinson Utilities. Joint purchasing of materials, supplies and services
shall be considered with other departments only when net economic benefits can be
achieved. When a tie exists between low bids, preference will be given to a local supplier.
For purchases when the estimate is more than $175,000:
1. The Hutchinson Utilities Commission will authorize permission to advertise for
bids.
2. Specifications shall be made available to all prospective bidders.
3. Bids will be opened at a public bid opening. Date will be set in the advertisement
for bids.
4. The staff will review bids and may recommend to the Hutchinson Utilities
Commission to accept the lowest responsible bidder meeting specifications.
5. Hutchinson Utilities Commission will enter into a contract with the responsible
bidder.
For purchases between $25,000 and $175,000:
1. The Hutchinson Utilities Commission staff will solicit written, informal quotations
from at least two (2) suppliers, if possible, and tabulate the results.
2. Fuel purchases for electrical generation is an exception, for additional exceptions
refer to Minnesota Statutes 2017, 471.345 Uniform Municipal Contracting Law.
3. Staff will evaluate the quotes and, in its discretion, determine which quotation is
most suitable for HUC and make a recommendation thereon to the commission.
4. Hutchinson Utilities Commission will approve the quote.
For purchases up to $25,000-
1 . General Manager authorized to approve purchases up to $25,000.
2. For purchases of $5,000 - $25,000, the Hutchinson Utilities Commission
staff may solicit written, informal quotations from at least two (2) suppliers
and tabulate the results or, in the alternative purchase equipment, supplies
or services on the open market.
3. Staff will recommend acceptance of purchases of $5,000 - $25,000 to the
General Manager for approval.
For purchases up to $5,000:
Directors, Managers, and the City Attorney are authorized to approve requisitions via the
purchasing software for purchases requiring a purchase order number.
If purchase order numbers are not required each department may use their assigned
credit card.
1. Directors, Managers, or the City Attorney will approve all item requests prior to
purchasing the item.
2. Receipts will be given to each Director, Manager, or City Attorney as items are
purchased to initial, assign appropriate account number and give a description of
the item purchased; then forward to Accounting.
3. Accounting will keep a file for each department until monthly credit card
statements are received and reconciled.
Petty cash may be used for purchases less than $2-560.00.
Employees may make local purchases with prior approval from their
Director/Manager. The employee has the option of using a HUC credit card, paying
cash for the item, if less than $2-16)0.00, and being reimbursed from petty cash,
or making the purchase at a local retailer with whom we have an account
established. All receipts must to be turned in to the appropriate Director/Manager to
initial, assign appropriate account number and then forward to the financial
manager.
CREDIT CARDS
A purchase by credit card must comply with all statutes and rules applicable to Hutchinson
Utilities Commission (HUC) purchases. Credit card purchases must comply with the
following requirements:
Minn. Stat. 412.271, subd. 2 and 471.38, subd.1. Claims presented to HUC for payment
must be in writing and itemized. Bills from credit card companies do not contain the detail
necessary to satisfy these requirements; therefore, HUC must retain invoices and
itemized receipts for items charged to a credit card.
The Office of the State Auditor strongly urges local government units to develop a
comprehensive credit card use policy to avoid misappropriation of funds or other misuse
of the credit card.
The following are authorized to make credit card purchases on behalf of HUC:
General Manager
Natural Gas Director
Electric Transmission/Distribution Manager
Production Manager
Engineering Services Manager
Inventory Agent
Administrative Coordinator
Plant Operator Crew Chief
Maintenance Crew Chief
Company purchases are allowed to be made with a credit card following all HUC spending
limit requirements. No personal purchases are to be made with the credit card. Receipts
will be given to each department Director/Manager as items are purchased to initial,
assign appropriate account numbers and give a description of the item purchased. The
receipt then gets forwarded to the financial manager.
The financial manager will keep a file for each department until monthly credit card
statements are received and reconciled. The financial manager has the authority to
approve and question all credit card purchases in so far as the policy applies. The full
amount of the statement must be paid each month.
FIXED ASSET CAPITALIZATION
The Hutchinson Utilities Commission (HUC) will regard fixed assets as capitalized when
all of the following criteria are met-
1 . Assets purchased, built or leased have useful lives of one year or more.
2. The cost of the asset (including installation) is $5,000 or more, or work
order infrastructure assets whose cost is less than $5,000 individually
but the aggregate total is $5,000 or more.
3. The cost of repairing or renovating the asset is $5,000 or more and
prolongs the life of the asset.
Costs associated with purchasing and implementing software, software maintenance and
customer support are considered expenditures and will not be capitalized.
Other Considerations:
1. REPAIR is an expenditure that keeps the property in ordinary efficient
operating condition. The cost of the repair does not add to the value or
prolong the life of the asset. All repair expenditures are charged to the
appropriate department and fund.
2. IMPROVEMENTS are expenditures for additions, alterations and
renovations that appreciably prolong the life of the asset, materially
increase its value or adapt it to a different use. Improvements of the
nature are capitalized.
Examples of Repairs vs. Improvements
Repairs=Expenditures
All items -life less than one year
All items under $5,000
Property maintenance, wall repair
Replacement of machine parts to keep
machine in normal operating condition
Property restoration (rebuilding) for
normal operations
Existing building repairs
Replacement of small sections of wiring,
pipes or light fixtures
Patching walls, minor repairs of floors,
painting, etc.
Patching driveways
Improvements=Capitalized Assets
Life of more than one year
All items $5,000 or more
Property rebuilding
Replacement of machine parts that
prolong the useful life
Property restoration for something
different or better
Building regulation conformity
Major replacement of wiring,
lighting, pipes or sewer
Installation of floor, wall, roof,
wall covering, etc.
New driveway or major repair
Cleaning drapery, carpet, furniture New drapery, carpets, furniture
Depreciation Method — Straight Line over the following useful lives:
Buildings
35-60 years
Transmission Plant (electric)
20-35 years
Distribution Plant (electric)
20-35 years
Building Improvement
15-30 years
Transmission Plant (gas)
10-45 years
Distribution Plant (gas)
10-45 years
Generation Plant
10-30 years
General Plant
5-10 years
Vehicles
5-10 years
Office Equipment
3-5 years
Computer Equipment
3-5 years
INVESTMENT POLICY
ADOPTED OCTOBER 28, 2015
HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY
PURPOSE
The purpose of this policy is to establish specific guidelines Hutchinson Utilities Commission will
use in the investment of Commission funds. It will be the responsibility of the General Manager
and Financial Manager to invest Commission Funds in order to attain the highest market rate of
return with the maximum security while meeting the daily cash flow demands of the Commission
and protecting the capital of the overall portfolio. Investments will be made in accordance with all
state and local statutes governing the investment of public funds.
SCOPF
The General Manager and Financial Manager are responsible for the investing of all financial
assets of the Hutchinson Utilities Commission, excluding pension funds. These funds are
accounted for in the Commission's Audited Financial Statements and Supplementary Information.
III. PRUDENCE
Investments shall be made with judgment and care, not for speculation, but for investment,
considering the probable safety of the capital as well as the probable income to be derived.
The standard of prudence to be used by investment officials shall be the "prudent person"
standard and shall be applied in the context of managing the overall portfolio. Investment officers
acting in accordance with this policy, with MN Statutes, Chapter 118A, and exercising due
diligences shall be relieved of personal responsibility for an individual security's risk or market
price change, provided that reasonable action is taken to control adverse developments and
unexpected deviations are reported in a timely manner.
OBJECTIVE
A. Safety -Safety of principal is of critical importance to the investment program. Investments
of the Commission shall be undertaken in a manner that seeks to ensure the preservation of
principal in the overall portfolio. The objective will be to mitigate credit risk and interest rate
risk.
1. Credit Risk - the risk of loss due to failure of the security issuer or backer, will be
minimized by:
- Limiting investments to the types of securities listed in Section VIII of this investment
policy.
- Pre -qualifying the financial institutions, broker/dealers, intermediaries, and advisors
with which the Commission will do business in accordance with Section VI I.
Hutchinson Utilities Commission Investment Policy Page 2
HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY
- Diversifying the investment portfolio so that the impact of potential losses from any
one type of security or from any one individual issuer will be minimized. Insurance or
collateral may be required to ensure return of principal.
2. Interest Rate Risk — the risk that the market value of securities in the portfolio will fall
due to changes in market interest rates will be minimized to:
- Provide for liquidity by reviewing cash flow requirements and make investments to
meet the shorter cash flow needs, thereby avoiding the need to sell securities in the
open market prior to maturity.
- Manage the average maturity of the overall portfolio to be consistent with the risk of
the Commission.
B. Liquidity - The Commission's investment portfolio will remain sufficiently liquid to enable
the Commission to meet all operating requirements reasonably anticipated. The portfolio
will be structured so that the portfolio emphasizes liquidity and consists largely of
securities with active secondary or resale markets (dynamic liquidity). A portion of the
portfolio may be placed in money market mutual funds or local government investment
pools which offer same day liquidity for short-term funds.
C. Yield - The Commission's investment portfolio shall be designed with the objective of
attaining a market rate of return. The core of investments is limited to low -risk securities
in anticipation of earning a fair return relative to the risk being assumed. Securities shall
generally be held until maturity with the following exceptions:
• A security with declining credit may be sold early to minimize loss of principal.
• A security swap would improve the quality, yield, or target duration in the portfolio.
• Liquidity needs of the portfolio require that the security be sold.
IV. DELEGATION OF AUTHORITY
Authority to manage the Commission's investment program is derived from MS 118A which
authorizes the Commission to invest any funds not presently needed in obligations in which
commission debt service funds may be invested. This law applies to all types of funds not
presently needed, including all general, special revenue, permanent, trust or other funds
regardless of source or purpose. Under this chapter a Government Entity may invest idle funds
instate or national banks, savings and loan associations, or credit unions. No person may engage
in an investment transaction except as provided under the terms of this policy and the procedures
established by the policy.
Management responsibility for the investment program is hereby delegated to the General
Manager and Financial Manager, who shall be responsible for all transactions. The Financial
Manager shall establish procedures for the operation of the investment program, consistent with
this policy. Such procedures may include delegation of authority to persons responsible for
investment transactions.
Hutchinson Utilities Commission Investment Policy Page 3
HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY
V. ETHICS AND CONFLICTS OF INTEREST
The General Manager and Finance Staff involved in the investment process shall refrain from
conducting personal business activity that could conflict with proper execution of the investment
program, or which could impair their ability to make impartial investment decisions. Investment
staff shall annually disclose to the Commission any material financial interests as required by
state statute. Investment staff shall subordinate their personal investment transactions to those
of the Commission, particularly with regard to the time of purchases and sales, and shall refrain
from undertaking personal investment transactions with the same individual with whom business
is conducted on behalf of the Commission.
VI. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The Commission will annually, by resolution, approve depositories and a list of financial
institutions authorized to provide investment services.
A. Only approved security broker/dealers, selected by creditworthiness, shall be utilized, with
a minimum of $10,000,000 capital and at least five years of operation.
B. Financial institutions must be qualified as a "depository" by the Hutchinson Utilities
Commission; these may include "primary" dealers or regional dealers that qualify under
Securities & Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule).
C. All investments must be insured, or registered, or securities must be held by the
Commission or its agent in the Commission's name.
D. No public deposit shall be made except in a qualified public depository, as established by
state laws.
E. When investments purchased by the Commission are held in safekeeping by a
broker/dealer, they must provide asset protection of $500,000 through Securities Investor
Protection Corporations (SIPC), and at least another $2,000,000 Supplemental Insurance
Protection, provided by the broker dealer.
F. Before engaging in investment transactions with the Hutchinson Utilities Commission, the
supervising officer at the securities broker/dealer shall submit a certification of "Notification
to Broker and Certification by Broker Pursuant to MN Statute 118K. Said certification will
state that the broker/dealer has reviewed the investment policies and objectives, as well
as applicable state law, and agrees to disclose potential conflicts or risk to public funds
that might arise out of business transactions between the securities broker/dealer firm and
the Commission. All financial institutions shall agree to undertake reasonable efforts to
preclude imprudent transactions involving the Commission's funds.
VII. AUTHORIZED AND SUITABLE INVESTMENTS
It shall be the policy of the Hutchinson Utilities Commission that available funds be invested to
the best rates obtainable at the time of investment in conformance with the legal and
administrative guideline outlined herein. US Treasury Obligations and Federal Agency Securities
will be given preference when the yields are equal to or greater than alternative investments.
Hutchinson Utilities Commission Investment Policy Page 4
HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY
The investments of the Hutchinson Utilities Commission will be made in accordance with
Minnesota Statutes, section 118A, which lists all permissible investments for Government Entities.
COLLATERAL
Interest -bearing deposits in authorized depositories must be fully insured or collateralized.
Collateralization will be required on Certificates of Deposits (where the dollar amount is in excess
of FDIC coverage). In order to anticipate market changes and provide a level of security for all
funds, the collateralization level will be 110% of the market value of principal and accrued interest.
When the pledged collateral consists of notes secured by first mortgages, the collateral level will
be 140% of the market value of principal and accrued interest. Collateral shall be deposited in
the name of the Commission, subject to release by the Financial Manager.
►VAI1_\01:\:11:11U1►[evil 01DZ911RI11i1BYO
Securities purchased shall be held in a segregated account for the Commission's benefit at a third
party trustee as safekeeping agent. The investment dealer or bank in which the security is
purchased shall issue a confirmation ticket to the Commission listing the specific instrument,
issuer, coupon, maturity, CUSIP number, purchase or sale price, transaction date, and other
pertinent information. The financial service provider which executes the transaction on the
Commission's behalf shall deliver all securities on a delivery versus payment method (DVP) to
the designated third party. Delivery versus payment (DVP) is a way of controlling the risk to which
securities market participants are exposed. Delivery of securities (i.e. the change in their
ownership) is done simultaneously with payment. This means that neither the buyer nor the seller
is exposed to the risk that the other will default. The Commission may not invest in securities that
are uninsured. Securities will be held in the Commission's designated accounts.
Investments, contracts and agreements may be held in safekeeping with:
- Any Federal Reserve bank;
- Any bank authorized under the laws of the United States or any state to
exercise corporate trust powers, including, but not limited to, the bank from
which the investment is purchased.
- A primary reporting dealer in United States government securities to the
Federal Reserve Bank of New York; or
- A securities broker -dealer having its principal executive office in Minnesota, licensed
under chapter 80A, or an affiliate of it, and regulated by the Securities and Exchange
Commission; provided that the government entity's ownership of all securities is
evidenced by written acknowledgments identifying the securities by the names of
the issuers, maturity dates, interest rates, CUSIP number, or other distinguishing
marks.
IX. DIVERSIFICATION
Hutchinson Utilities Commission Investment Policy Page 5
HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY
The Financial Manager or investment designee will attempt to diversify its investments according
to type and maturity. The Commission will attempt to match its investments with anticipated cash
flow requirements. Extended maturities may be utilized to take advantage of higher yields.
Diversifications strategies shall be determined and revised periodically by the Commission for all
funds.
A. Institutions — Diversity between financial institutions used.
a. The Financial Manager or investment designee will attempt to diversify its
investments amongst investment companies, keeping in mind that some
temporary fluctuations may occur throughout the year (i.e. GO Bonds for
projects, etc.)
b. No funds may be invested in any one investment company in excess of the
amount insured by it.
B. Maturities — Diversity in length of maturities.
a. Investments shall be made to assure that funds are constantly available to
meet immediate payment requirements
b. No investments shall be made with a term of more than 10 years..
C. Investments— The Commission should maintain a diversity of investments.
a. Depending on market conditions, with the exception of US Treasury Securities,
authorized pools, and Federal Agencies (backed by the full faith and credit of
the US Government or its agencies), no more than 50% of the Commission's
total investment portfolio may be invested in any one of the following:
Certificates of Depositor Commercial Paper.
X. POOLING OF INVESTMENTS
For the purpose of making the maximum amount of funds available for investment, the cash for
Commission Funds, as listed in Part II, is pooled in an investment account. Interest earnings are
allocated among the various funds based upon their average cash balance.
XI. INVESTMENT POLICY ADOPTION
The Commission's Investment Policy shall be adopted by resolution by the Hutchinson Utilities
Commission. The Policy shall be reviewed on an annual basis and any modifications made
thereto must be approved by the Hutchinson Utilities Commission.
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HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY
APPENDIXA — MS STATUTE 118A. DEPOSIT AND INVESTMENT OF LOCAL PUBLIC
FUNDS.
118A.01 DEFINITIONS.
Subdivision 1.Application.
The definitions in this section apply to sections 118A.01 to 118A.06.
Subd. 2.Government entity.
(a) "Government entity" means a county, city, town, school district, hospital district,
public authority, public corporation, public commission, special district, any other
political subdivision, except an entity whose investment authority is specified under
chapter I IA or 356A.
(b) For the purposes of sections I I8A.02 and I I8A.03 only, the term includes an
American Indian tribal government entity located within a federally recognized American
Indian reservation.
Subd. 3.Financial institution.
"Financial institution" means a savings association, commercial bank, trust company,
credit union, or industrial loan and thrift company.
Subd. 4.Public funds.
"Public funds" means all general, special, permanent, trust, and other funds,
regardless of source or purpose, held or administered by a government entity, unless
otherwise restricted.
History: 1996 c 399 art I s 21 1999 c 151 s 39
118A.02 DEPOSITORIES; INVESTING: SALES, PROCEEDS, IMMUNITY.
Subdivision 1.Designation; delegation.
(a) The governing body of each government entity shall designate, as a depository of
its funds, one or more financial institutions.
(b) The governing body may authorize the treasurer or chief financial officer to:
(1) designate depositories of the funds;
(2) make investments of funds under sections 118A.0I to 118A.06 or other applicable
law; or
(3) both designate depositories and make investments as provided in this subdivision.
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HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY
Subd. 2.Sale; proceeds; immunity, if loss.
(a) The treasurer or chief financial officer of a government entity may at any time sell
obligations purchased pursuant to this section and the money received from such sale, and
the interest and profits or loss on such investment shall be credited or charged, as the case
may be, to the fund from which the investment was made.
(b) Neither such official nor government entity, nor any other official responsible for
the custody of such funds, shall be personally liable for any loss sustained from the
deposit or investment of funds in accordance with the provisions of sections I I8A.04 and
118A.05.
History: 1996 c 399 art I s 3
118A.03 WHEN AND WHAT COLLATERAL REQUIRED.
Subdivision I.For deposits beyond insurance.
To the extent that funds on deposit at the close of the financial institution's banking
day exceed available federal deposit insurance, the government entity shall require the
financial institution to furnish collateral security or a corporate surety bond executed by a
company authorized to do business in the state. For the purposes of this section, "banking
day" has the meaning given in Federal Reserve Board Regulation CC, Code of Federal
Regulations, title 12, section 229.2(f), and incorporates a financial institution's cutoff hour
established under section 336.4-108.
Subd. 2.In lieu of surety bond.
The following are the allowable forms of collateral in lieu of a corporate surety bond:
(1) United States government Treasury bills, Treasury notes, Treasury bonds;
(2) issues of United States government agencies and instrumentalities as quoted by a
recognized industry quotation service available to the government entity;
(3) general obligation securities of any state or local government with taxing powers
which is rated "A" or better by a national bond rating service, or revenue obligation
securities of any state or local government with taxing powers which is rated "AA" or
better by a national bond rating service;
(4) general obligation securities of a local government with taxing powers may be
pledged as collateral against funds deposited by that same local government entity;
(5) irrevocable standby letters of credit issued by Federal Home Loan Banks to a
municipality accompanied by written evidence that the bank's public debt is rated "AA" or
better by Moody's Investors Service, Inc., or Standard & Poor's Corporation; and
(6) time deposits that are fully insured by any federal agency.
Hutchinson Utilities Commission Investment Policy Page 8
HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY
Subd. 3. Amount.
The total amount of the collateral computed at its market value shall be at least ten
percent more than the amount on deposit at the close of the financial institution's banking
day, except that where the collateral is irrevocable standby letters of credit issued by
Federal Home Loan Banks, the amount of collateral shall be at least equal to the amount
on deposit at the close of the financial institution's banking day. The financial institution
may furnish both a surety bond and collateral aggregating the required amount.
Subd. 4.Assignment.
Any collateral pledged shall be accompanied by a written assignment to the
government entity from the financial institution. The written assignment shall recite that,
upon default, the financial institution shall release to the government entity on demand,
free of exchange or any other charges, the collateral pledged. Interest earned on assigned
collateral will be remitted to the financial institution so long as it is not in default. The
government entity may sell the collateral to recover the amount due. Any surplus from the
sale of the collateral shall be payable to the financial institution, its assigns, or both.
Subd. 5.Withdrawal of excess collateral.
A financial institution may withdraw excess collateral or substitute other collateral
after giving written notice to the governmental entity and receiving confirmation. The
authority to return any delivered and assigned collateral rests with the government entity.
Subd. 6.Default.
For purposes of this section, default on the part of the financial institution includes,
but is not limited to, failure to make interest payments when due, failure to promptly
deliver upon demand all money on deposit, less any early withdrawal penalty that may be
required in connection with the withdrawal of a time deposit, or closure of the depository.
If a financial institution closes, all deposits shall be immediately due and payable. It shall
not be a default under this subdivision to require prior notice of withdrawal if such notice
is required as a condition of withdrawal by applicable federal law or regulation.
Subd. 7. Safekeeping.
All collateral shall be placed in safekeeping in a restricted account at a Federal
Reserve bank, or in an account at a trust department of a commercial bank or other
financial institution that is not owned or controlled by the financial institution furnishing
the collateral. The selection shall be approved by the government entity.
History: 1996 c 399 art I s 4; 2003 c 51 s I5 161 2004 c 151 s 1 2; 2004 c 174 s 2; 2007
c 44 s 7; 2007 c 57 art 3 s 39. 2008 c 154 art 10 s 1 014 a 292 s I
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HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY
118A.04 INVESTMENTS.
Subdivision I.What may be invested.
Any public funds, not presently needed for other purposes or restricted for other
purposes, may be invested in the manner and subject to the conditions provided for in this
section.
Subd. 2.United States securities.
Public funds may be invested in governmental bonds, notes, bills, mortgages
(excluding high -risk mortgage -backed securities), and other securities, which are direct
obligations or are guaranteed or insured issues of the United States, its agencies, its
instrumentalities, or organizations created by an act of Congress.
Subd. 3.State and local securities.
Funds may be invested in the following:
(1) any security which is a general obligation of any state or local government with
taxing powers which is rated "A" or better by a national bond rating service;
(2) any security which is a revenue obligation of any state or local government with
taxing powers which is rated "AA" or better by a national bond rating service; and
(3) a general obligation of the Minnesota housing finance agency which is a moral
obligation of the state of Minnesota and is rated "A" or better by a national bond rating
agency.
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21 Q1111n2111[Mllll« 6 I'l tl,le credit «u Il uN «u «u« 112aO;u 2i!7 t�o s«;;cabal 126C,55.
Subd. 4.Commercial papers.
Funds may be invested in commercial paper issued by United States corporations or
their Canadian subsidiaries that is rated in the highest quality category by at least two
nationally recognized rating agencies and matures in 270 days or less.
Subd. 5.Time deposits.
Funds may be invested in time deposits that are fully insured by the Federal Deposit
Insurance Corporation, i le Natiomd G'rr'..xi BI««xa«« /1 Xxxxx,�,
d«ixa«I,„«, or bankers acceptances
of United States banks.
Subd. 6.High-risk mortgage -backed securities.
For the purposes of this section and section 118A.05, "high -risk mortgage -backed
securities" are:
(a) interest -only or principal -only mortgage -backed securities; and
Hutchinson Utilities Commission Investment Policy Page 10
HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY
(b) any mortgage derivative security that:
(1) has an expected average life greater than ten years;
(2) has an expected average life that:
(i) will extend by more than four years as the result of an immediate and sustained
parallel shift in the yield curve of plus 300 basis points; or
(ii) will shorten by more than six years as the result of an immediate and sustained
parallel shift in the yield curve of minus 300 basis points; or
(3) will have an estimated change in price of more than 17 percent as the result of an
immediate and sustained parallel shift in the yield curve of plus or minus 300 basis points.
Subd. 7.Temporary general obligation bonds.
Funds may be invested in general obligation temporary bonds of the same
governmental entity issued under section 429.091, subdivision 7, 469.178, subdivision 5,
or 475.61, subdivision 6.
Subd. 8.Debt service funds.
Funds held in a debt service fund may be used to purchase any obligation, whether
general or special, of an issue which is payable from the fund, at such price, which may
include a premium, as shall be agreed to by the holder, or may be used to redeem any
obligation of such an issue prior to maturity in accordance with its terms. The securities
representing any such investment may be sold by the governmental entity at any time, but
the money so received remains part of the fund until used for the purpose for which the
fund was created. Any obligation held in a debt service fund from which it is payable may
be canceled at any time unless otherwise provided in a resolution or other instrument
securing obligations payable from the fund.
Subd. 9.Broker; statement and receipt.
(a) For the purpose of this section and section I I8A.05, the term "broker" means a
broker -dealer, broker, or agent of a government entity, who transfers, purchases, sells, or
obtains securities for, or on behalf of, a government entity.
(b) Prior to completing an initial transaction with a broker, a government entity shall
provide annually to the broker a written statement of investment restrictions which shall
include a provision that all future investments are to be made in accordance with
Minnesota Statutes governing the investment of public funds.
(c) A broker must acknowledge annually receipt of the statement of investment
restrictions in writing and agree to handle the government entity's account in accordance
with these restrictions. A government entity may not enter into a transaction with a broker
until the broker has provided this written agreement to the government entity.
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HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY
(d) The state auditor shall prepare uniform notification forms which shall be used by
the government entities and the brokers to meet the requirements of this subdivision.
History:
118A.05 CONTRACTS AND AGREEMENTS.
Subdivision I.May enter into.
In addition to other authority granted in sections I I8A.0I to I I8A.06, government
entities may enter into contracts and agreements as follows.
Subd. 2.Repurchase agreements.
Repurchase agreements consisting of collateral allowable in section I I8A.04, and
reverse repurchase agreements may be entered into with any of the following entities:
(1) a financial institution qualified as a "depository" of public funds of the
government entity;
(2) any other financial institution which is a member of the Federal Reserve System
and whose combined capital and surplus equals or exceeds $10,000,000;
(3) a primary reporting dealer in United States government securities to the Federal
Reserve Bank of New York; or
(4) a securities broker -dealer licensed pursuant to chapter 80A, or an affiliate of it,
regulated by the Securities and Exchange Commission and maintaining a combined capital
and surplus of $40,000,000 or more, exclusive of subordinated debt.
Reverse agreements may only be entered into for a period of 90 days or less and only
to meet short-term cash flow needs. In no event may reverse repurchase agreements be
entered into for the purpose of generating cash for investments, except as stated in
subdivision 3.
Subd. 3.Securities lending agreements.
Securities lending agreements, including custody agreements, may be entered into
with a financial institution meeting the qualifications of subdivision 2, clause (1) or (2),
and having its principal executive office in Minnesota. Securities lending transactions may
be entered into with entities meeting the qualifications of subdivision 2 and the collateral
for such transactions shall be restricted to the securities described in this section and
section 118A.04.
Subd. 4.Minnesota joint powers investment trust.
Government entities may enter into agreements or contracts for:
Hutchinson Utilities Commission Investment Policy Page 12
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HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY
(1) shares of a Minnesota joint powers investment trust whose investments are
restricted to securities described in this section and section I I8A.04 d�ml scctimx f f SA .07.
stibdivisio�x 7..
(2) units of a short-term investment fund established and administered pursuant to
regulation 9 of the Office of the Comptroller of the Currency, in which investments are
restricted to securities described in this section and section I I8A.04;
(3) shares of an investment company which is registered under the Federal Investment
Company Act of 1940 and which holds itself out as a money market fund meeting the
conditions of rule 2a-7 of the Securities and Exchange Commission and is rated in one of
the two highest rating categories for money market funds by at least one nationally
recognized statistical rating organization; or
(4) shares of an investment company which is registered under the Federal Investment
Company Act of 1940, and whose shares are registered under the Federal Securities Act of
1933, as long as the investment company's fund receives the highest credit rating and is
rated in one of the two highest risk rating categories by at least one nationally recognized
statistical rating organization and is invested in financial instruments with a final maturity
no longer than 13 months.
Subd. 5.Guaranteed investment contracts.
Agreements or contracts for guaranteed investment contracts may be entered into if
they are issued or guaranteed by United States commercial banks, domestic branches of
foreign banks, United States insurance companies, or their Canadian subsidiaries, or the
domestic affiliates of any of the foregoing. The credit quality of the issuer's or guarantor's
short- and long-term unsecured debt must be rated in one of the two highest categories by
a nationally recognized rating agency. arcgrX cws 6 r c6D81Iracls for Formatted: Font: (Default) Times New Roman, 12 pt
Cate racts v iffi a tcnXx of, 18 or less X�w: v be enered iwo reaardless of, ffic credit: mlality of,
xe xtslcgN or gyl!atlXdtlBN(6hr°� K,i LIMCc LWCd dCIA pans xdcd ik�d�i ik c � edxi a: lca�lxi ani` ik c
:YUc �tx fl i 'ffl..tCMcct:xed debt is rated itt ffic ktid,bcdai,c,ml-y by.:a mflianm llv rccog!d xrcd
ratit sir ade�,l,�c y. Should the issuer's or guarantor's credit quality be downgraded below "A",
the government entity must have withdrawal rights.
History: 1996 c 399 art I s 61 1997 c 219 s 1; 2000 c 493 s 1
118A.06 SAFEKEEPING; ACKNOWLEDGEMENTS.
Investments, contracts, and agreements may be held in safekeeping with:
(1) any Federal Reserve bank;
Hutchinson Utilities Commission Investment Policy Page 13
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HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY
(2) any bank authorized under the laws of the United States or any state to exercise
corporate trust powers, including, but not limited to, the bank from which the investment
is purchased;
(3) a primary reporting dealer in United States government securities to the Federal
Reserve Bank of New York; or
(4) a securities broker -dealer having its principal executive office in Minnesota,
licensed under chapter 80A, or an affiliate of it, and regulated by the Securities and
Exchange Commission; provided that the government entity's ownership of all securities is
evidenced by written acknowledgments identifying the securities by the names of the
issuers, maturity dates, interest rates, CUSIP number, or other distinguishing marks.
History: 1996 c 399 art I s 71 2010 c 234 s 2
118A.07 ADDITIONAL INVESTMENT AUTHORITY.
Subdivision I.Authority provided.
As used in this section, "governmental entity" means a city with a population in
county city th excess o 200,000, or a coup that contains a cr o that size:, an
Q �'QL!BNC:1,l. If a governmental entity meets the requirements of subdivisions 2 and 3, it may
exercise additional investment authority under subdivisions 4, 5, and 6.
Subd. 2.Written policies and procedures.
Prior to exercising any additional authority under subdivisions 4, 5, and 6, the
governmental entity must have written investment policies and procedures governing the
following:
(1) the use of or limitation on mutual bond funds or other securities authorized or
permitted investments under law;
(2) specifications for and limitations on the use of derivatives;
(3) the final maturity of any individual security;
(4) the maximum average weighted life of the portfolio;
(5) the use of and limitations on reverse repurchase agreements;
(6) credit standards for financial institutions with which the government entity deals;
and
(7) credit standards for investments made by the government entity.
Subd. 3.Oversight process.
Prior to exercising any authority under subdivisions 4, 5, and 6, the governmental
entity must establish an oversight process that provides for review of the government
Hutchinson Utilities Commission Investment Policy Page 14
HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY
entity's investment strategy and the composition of the financial portfolio. This process
shall include one or more of the following:
(1) audit reviews;
(2) internal or external investment committee reviews; and
(3) internal management control.
Additionally, the governing body of the governmental entity must, by resolution,
authorize its treasurer to utilize the additional authorities under this section within their
prescribed limits, and in conformance with the written limitations, policies, and
procedures of the governmental entity.
If the governing body of a governmental entity exercises the authority provided in
this section, the treasurer of the governmental entity must annually report to the governing
body on the findings of the oversight process required under this subdivision. If the
governing body intends to continue to exercise the authority provided in this section for
the following calendar year, it must adopt a resolution affirming that intention by
December 1.
Subd. 4.Repurchase agreements.
A government entity may enter into repurchase agreements as authorized under
section 118A.05, provided that the exclusion of mortgage -backed securities defined as
"high -risk mortgage -backed securities" under section I I8A.04, subdivision 6, shall not
apply to repurchase agreements under this authority if the margin requirement is 101
percent or more.
Subd. 5.Reverse repurchase agreements.
Notwithstanding the limitations contained in section I I8A.05, subdivision 2, the
county may enter into reverse repurchase agreements to:
(1) meet cash flow needs; or
(2) generate cash for investments, provided that the total securities owned shall be
limited to an amount not to exceed 130 percent of the annual daily average of general
investable monies for the fiscal year as disclosed in the most recently available audited
financial report. Excluded from this limit are:
(i) securities with maturities of one year or less; and
(ii) securities that have been reversed to maturity.
There shall be no limit on the term of a reverse repurchase agreement. Reverse
repurchase agreements shall not be included in computing the net debt of the
governmental entity, and may be made without an election or public sale, and the interest
payable thereon shall not be subject to the limitation in section 475.55. The interest shall
Hutchinson Utilities Commission Investment Policy Page 15
HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY
not be deducted or excluded from gross income of the recipient for the purpose of state
income, corporate franchise, or bank excise taxes, or if so provided by federal law, for the
purpose of federal income tax.
Subd. 6.Options and futures.
A government entity may enter into futures contracts, options on futures contracts,
and option agreements to buy or sell securities authorized under law as legal investments
for counties, but only with respect to securities owned by the governmental entity,
including securities that are the subject of reverse repurchase agreements under this
section that expire at or before the due date of the option agreement.
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History: 1996 c 399 art I s 8 2014 tl 292 s
118A.08 NO SUPERSEDING EFFECT.
Except as provided in Laws 1996, chapter 399, article 1, section 11, sections I I8A.0I
to I I8A.06 shall not supersede any general or special law relating to the deposit and
investment of public funds.
History: 1996 c 399 art I s 9
Hutchinson Utilities Commission Investment Policy Page 16
EXEMPT
PETTY CASH
Petry cash funds are kept with the Accountant. The petty cash fund will be used to reimburse
payment up to $2,550.00. Any expenditure over $2,550.00 will be reimbursed by check. Itemized
receipts must be attached to a complete petty cash slip whenever possible. An employee may obtain
an advance of petty cash by completing a petty cash slip and reconciling the advance with the
actual amount as soon as possible.
NON-EXEMPT
PETTY CASH
Petry cash funds are kept with the Accountant. The petty cash fund will be used to reimburse
payment up to $2,550.00. Any expenditure over $2,550.00 will be reimbursed by check. Itemized
receipts must be attached to a complete petty cash slip whenever possible. An employee may obtain
an advance of petty cash by completing a petty cash slip and reconciling the advance with the
actual amount as soon as possible.
HUTCHINSON UTILITIES COMMISSION��`
Board Action Form
�r�turscti
mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm
Agenda Item: Non -Waiver of Tort Liability Limits for General Liability
Presenter: Jared Martig
Agenda Item; Type:
Time Requested (Minutes): 2
New Business
Attachments:
Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
As part of the League of Minnesota Cities Insurance Trust general liability insurance
renewal for the period January 2024 through December 2024, HUC must decide whether
or not to waive the statutory municipal tort liability limits from $500,000 per claimant and
$1,500,000 per occurrence. If HUC does waive this, then HUC must purchase excess
liability coverage. Historically HUC has not waived the municipal tort limit because by
doing so, HUC opens itself up to claims and potential payment above the statutory limit.
Recommendation is to not waive the tort liability limits.
BOARD ACTION REQUESTED:
Approve non -waiver of tort liability limits for general liability for the upcoming policy
period of January 2024 through December 2024
FiscalImpact:
Included in current budget: No Budget Change:
PROJECT SECTION:
Total Project Cost: 0.00 Remaining Cost:
LMC
LEAGUE W'`
MINNESOTA
CITIES
LIABILITY COVERAGE WAIVER FORM
Members who obtain liability coverage through the League of Minnesota Cities Insurance Trust
(LMCIT) must complete and return this form to LMCIT before their effective date of coverage.
Email completed form to your city's underwriter, to pstech(a�lmc.or�, or fax to 651.281.1298.
Members who obtain liability coverage from LMCIT must decide whether to waive the statutory tort liability limits to
the extent of the coverage purchased. The decision to waive or not waive the statutory tort limits must be made
annually by the member's governing body, in consultation with its attorney if necessary. The decision has the
following effects:
• If the member does not waive the statutory tort limits, an individual claimant could recover no more than $500,000 on
any claim to which the statutory tort limits apply. The total all claimants could recover for a single occurrence to
which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits would apply
regardless of whether the member purchases the optional LMCIT excess liability coverage.
• If the member waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could
recover up to $2,000,000 for a single occurrence (under the waive option, the tort cap liability limits are only waived
to the extent of the member's liability coverage limits, and the LMCIT per occurrence limit is $2,000,000). The total
all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to
$2,000,000, regardless of the number of claimants.
If the member waives the statutory tort limits and purchases excess liability coverage, a single claimant could
potentially recover an amount up to the limit of the coverage purchased. The total all claimants could recover for a
single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased,
regardless of the number of claimants.
Claims to which the statutory municipal tort limits do not apply are not affected by this decision.
LMCIT Member Name: HUTCHINSON UTILITIES COMMISSION
Check one.-
* The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minn. Stat.
466.04.
❑ The member WAIVES the monetary limits on municipal tort liability established by Minn. Stat. § 466.04, to the
extent of the limits of the liability coverage obtained from LMCIT.
Date of member's governing body meeting:
Signature:
Position:
NOVEMBER 29, 2023
League of Minnesota Cities 3/2/2023
Liability Coverage Waiver Form Page 1
HUTCHINSON UTILITIES COMMISSION��`
Board Action Form
�r�turscti
mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm
Agenda Item: Approve Write -Offs
Presenter: Jared Martig
Agenda Item; Type:
Time Requested (Minutes): 2
New Business
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
We are requesting that you approve the write-offs in the amount of $4,883.37 as shown
on the attached spreadsheet. Past amounts written off are listed below.
2022: $ 7,492.23
2021: $ 8,993.92
2020. $24,998.20
2019: $ 9,603.01
2018: $ 9,850.78
2017: $31,967.78
2016: $11,350.31
2015. $ 7,537.92
2014: $41,279.16
2013: $ 4,316.12
2012: $ 4,067.15
2011: $ 9,792.12
BOARD ACTION REQUESTED:
Approve Write Offs
FiscalImpact:
Included in current budget: Budget Change:
PROJECT SECTION:
Total Project Cost: Remaining Cost:
WRITE OFFS FOR NOVEMBER 2023
Total Electric Gas Last Pay
a
Bankruptcy
$0.00 $0.00 $0.00
Total Electric Gas
Deceased
00091155 $30.69 $30.69
00260281 $130.44 $130.44
00350456 $284.38 $113.25 $171.13
$445.51 $274.38 $171.13
Total Electric Gas
Other
00210716 $6.48 $6.48
00350605 $140.26 $140.26
00350619 $152.30 $152.30
00030980 $23.89 $23.89
00050365 $181.84 $181.84
00060410 $125.68 $0.00 $125.68
00060610 $373.17 $373.17
00080265 $38.02 $38.02
00080270 $38.00 $38.00
00121452 $13.03 $13.03
00300180 $180.80 $0.00 $180.80
00350608 $39.02 $39.02
00350626 $35.48 $35.48
00420008 $32.57 $32.57
00420086 $221.22 $221.22
00435135 $10.26 $10.26
01001891 $70.31 $70.31
00260248 $10.18 $10.18
00090940 $59.29 $13.76 $45.53
00470123 $62.80 $62.80
00030750 $102.07 $102.07
00120235 $268.69 $100.96 $167.73
00121196 $69.59 $36.01 $33.58
00270155 $60.14 $60.14
00300380 $605.26 $454.79 $150.47
00350624 $148.83 $148.83
00452507 $214.69 $214.69
00020195 $207.16 $207.16
00420455 $590.66 $590.66
00420351 $89.13 $89.13
00030890 $142.64 $142.64
00370617 $124.40 $40.59 $83.71
$4,437.86 $3,590.12 $847.64
Grand Totals $4,883.37 $3,864.50 $1,018.77
Last Pav
2/19/2023
3/31/2023
12/9/2022
Last Pay
12/17/2021
10/25/2022
6/15/2022
12/17/2020
10/21/2021
3/21/2017
4/17/2022
4/28/2017
4/28/2017
8/9/2022
10/7/2021
11/14/2018
NA
10/13/2022
9/21/2022
4/8/2021
5/1/2020
2/28/2023
3/20/2017
5/15/2017
NA
NA
6/15/2017
NA
NA
NA
5/15/2017
7/3/2017
8/18/2017
8/11/2017
7/19/2017
10/6/2017
HUTCHINSON UTILITIES COMMISSION��`
Board Action Form
�r�turscti
mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm
Agenda Item: Approval of Interconnect Agreement for Heartland Corn Products
Presenter: John Webster
Agenda Item Type:
Time Requested (Minutes): 2
New Business
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
Heartland Corn Products has requested that an interconnection be put in place between
the Hutchinson Utilities' 12" natural gas pipeline and the 6" pipeline that Heartland Corn
Products is currently constructing in Sibley County.
This Agreement specifies construction and operational parameters that will exist
between both parties at the interconnect station.
BOARD ACTION REQUESTED:
Approval of Interconnect Agreement for Heartland Corn Products
Fiscal Impact: $7,920 Annual Income
Included in current budget: Yes Budget Change: No
PROJECT SECTION:
Total Project Cost: Remaining Cost:
OCTOBER 30, 2023
INTERCONNECT AGREEMENT
JOHN WEBSTER
HUTCHINSON UTILITIES
225 MICHIGAN ST SE
HUTCHINSON, MN 55350
INTERCONNECT AGREEMENT
THIS INTERCONNECT AGREEMENT ("AGREEMENT") IS MADE AND
ENTERED INTO ON THIS l St DAY OF NOVEMBER, 2023, TO BE EFFECTIVE AS OF
THE 1 ST DAY OF DECEMBER, 2023, BY AND BETWEEN HEARTLAND CORN
PRODUCTS ("HCP") WITH OFFICES LOCATED AT 53331 STATE HIGHWAY 19, PO
BOX A, WINTHROP, MINNESOTA, 55396 AND HUTCHINSON UTILITIES
COMMISSION ("HUTCHINSON") A MINNESOTA MUNICIPAL. UTILITY LOCATED AT 225
MICHIGAN ST. SE, HUTCHINSON, MINNESOTA, 55350. HCP AND HUTCHINSON
SHALL HEREINAFTER SOMETIMES BE REFERRED TO SEPARATELY AS "PARTY" OR
JOINTLY AS "PARTIES."
WITNESSETH:
WHEREAS, HCP WILL OWN CERTAIN PIPELINE FACILITIES WHICH ARE
LOCATED WITHIN THE STATE OF MINNESOTA;
WHEREAS, HUTCHINSON OWNS AND OPERATES AN EXISTING NATURAL.
GAS PIPELINE SYSTEM WHICH COMMENCES FROM A POINT ON THE NORTHERN
BORDER PIPELINE NEAR TRIMONT, MINNESOTA TO A POINT OF TERMINUS NEAR
HUTCHINSON, MINNESOTA; AND
WHEREAS, HCP DESIRES TO ESTABLISH AN INTERCONNECTION BETWEEN
ITS PIPELINE FACILITIES AND THE NATURAL. GAS PIPELINE FACILITIES OF
HUTCHINSON AND HUTCHINSON IS WILLING TO ESTABLISH SUCH
INTERCONNECTION UNDER THE TERMS AND CONDITIONS SET FORTH HEREIN; AND
WHEREAS, HCP AND HUTCHINSON DESIRE TO HAVE THE
INTERCONNECTION BETWEEN THEIR RESPECTIVE FACILITIES IN SERVICE ON OR
BEFORE DECEMBER 15, 2023;
NOW, THEREFORE, IN CONSIDERATION OF THE PROMISES AND OF THE
MUTUAL. COVENANTS AND AGREEMENTS HEREINAFTER SET FORTH, THE PARTIES,
EACH FOR ITSELF AND FOR ITS SUCCESSORS AND PERMITTED ASSIGNS, HEREBY
AGREE AS FOLLOWS:
1 . THE POINT OF INTERCONNECTION BETWEEN HUTCHINSON'S NATURAL.
HCP INTERCONNECT AGREEMENT
OCTOBER 30, 2023
GAS PIPELINE FACILITIES AND HCP'S NATURAL GAS PIPELINE
FACILITIES SHALL BE LOCATED ON PROPERTY IN SIBLEY COUNTY,
MINNESOTA LEGALLY DESCRIBED AS FOLLOWS:
A PIECE OF LAND 125 FT. BY 125 FT., MINIMUM, LYING
EAST OF 595TH AVENUE (COUNTY RD 3) IN:
TOWNSHIP 1 13 NORTH, RANGE 30 WEST
SECTION 32: NWI14 OF THESE 1/4
HEREINAFTER REFERRED TO AS THE "HCP INTERCONNECT
STATION".
2. HUTCHINSON WILL OWN, DESIGN, PURCHASE, OPERATE, MAINTAIN AND
CONSTRUCT THE FACILITIES LISTED IN SECTIONS 2.1 THROUGH 2.7
(HEREIN REFERRED TO AS THE "HUTCHINSON INTERCONNECT
FACILITIES") CAPABLE OF DELIVERING TO HCP 20,000 DTH/DAY AT
HUTCHINSON'S LINE PRESSURE. HUTCHINSON LINE PRESSURE AT THE
CUSTODY TRANSFER POINT MAY FROM TIME TO TIME BE REDUCED
BELOW HUTCHINSON'S MAINLINE PRESSURE BECAUSE OF FRICTIONAL
LOSSES CAUSED BY THE HUTCHINSON DELIVERY FACILITIES.
2.1 METER RUN. DUAL CORIOLIS METERS AND ASSOCIATED METER
RUN PIPING WILL BE DESIGNED AND INSTALLED IN ACCORDANCE
WITH HUTCHINSON ENGINEERING STANDARDS. THE METER RUN
WILL BE USED FOR CUSTODY TRANSFER GAS VOLUME
MEASUREMENT.
2.2 PIPING. HUTCHINSON WILL PERFORM A "HOT TAP" ON THE 1 2"
HUTCHINSON PIPELINE AND INSTALL PIPING FROM THE "HOT
TAP" TO THE HUTCHINSON SIDE VALVE.
PIPING WILL BE INSTALLED FROM THE HUTCHINSON SIDE VALVE
TO THE PIPING ON THE FILTER/METER SKID AND THEN TO THE
DOWNSTREAM FLANGE AT THE CUSTODY TRANSFER POINT.
HUTCHINSON WILL INSTALL AN INSULATING GASKET KIT IN THE
CUSTODY TRANSFER FLANGE FOR ELECTRICAL ISOLATION
BETWEEN THE HUTCHINSON AND HCP PIPING SYSTEMS. ALL
BURIED PIPING INSTALLED IN THIS AREA SHALL BE INSTALLED AT
A MINIMUM DEPTH OF 3 FEET. THE ABOVE GRADE PIPING WILL
BE DESIGNED PER HUTCHINSON ENGINEERING STANDARDS.
HUTCHINSON PIPING AT THE HUTCHINSON INTERCONNECT
FACILITIES WILL BE DESIGNED FOR A MINIMUM DESIGN
PRESSURE OF 1,440 PSIG WITH A 0.5 DESIGN FACTOR PER U.S.
DEPARTMENT OF TRANSPORTATION (DOT) PIPELINE SAFETY
HCP INTERCONNECT AGREEMENT 2
OCTOBER 30, 2023
REGULATIONS, PART 192 FOR NATURAL, GAS. THE HCP
INTERCONNECT PIPING SHALL, BE DESIGNED FOR 1,440 PSIG. IF
A LOWER DESIGN PRESSURE IS USED FOR DESIGN OF THE
INTERCONNECT PIPING, HCP SHALL INSTALL CODE APPROVED
SAFETY VALVES TO PROTECT THE HCP SYSTEM FROM
ACCIDENTAL OVERPRESSURE BY THE HUTCHISON GAS SUPPLY.
2.3 FILTER/METER SKID. THE METER ASSEMBLY WILL CONTAIN
DUAL CORIOLIS METER RUNS AND A SPECIFIC GRAVITY METER.
THE FILTER ASSEMBLY WILL CONTAIN THE FILTER, AND A BYPASS
LINE AROUND THE FILTER FOR FILTER MAINTENANCE. THE
STATION DESIGN WILL NOT INCLUDE AUTOMATIC STATION BLOW
DOWN EQUIPMENT.
2.4 VALVES. THE SIDE VALVE WILL BE MANUALLY OPERATED.
2.5 PRESSURE AND TEMPERATURE TRANSMITTERS. ALL
TRANSMITTERS SHALL ADHERE TO HUTCHINSON ENGINEERING
STANDARDS.
2.6 CABLE AND CONDUIT. ALL NECESSARY CONDUIT AND CABLE
FROM THE MEASUREMENT FACILITIES TO THE RTU. CONDUIT
SHALL BE GALVANIZED AND RIGID ABOVE GRADE AND PVC
COATED RIGID BELOW GROUND.
2.7 REMOTE TERMINAL UNIT (RTU). HUTCHINSON WILL INSTALL A
RTU AND A FLOW COMPUTER WITH ELECTRONIC FLOW
MEASUREMENT (EFM) CAPABILITIES.
3. HUTCHINSON SHALL CONTROL ALL VOLUMES DELIVERED TO THE HCP
INTERCONNECT STATION.
4. HUTCHINSON SHALL RETAIN THE RIGHT TO INSTALL ADDITIONAL
FACILITIES IN, ACROSS, UNDER OR THROUGH THE HCP INTERCONNECT
STATION. THESE FACILITIES MAY BE UTILIZED TO PROVIDE NATURAL
GAS TO PARTIES INDEPENDENT OF HCP. HUTCHINSON'S FACILITIES
SHALL NOT INTERFERE WITH THE PROPER OPERATION AND
MAINTENANCE OF THE HCP FACILITIES.
J. HCP WILL DESIGN, PURCHASE, CONSTRUCT, INSTALL, OWN, MAINTAIN
AND OPERATE THE FOLLOWING FACILITIES (HEREIN REFERRED TO AS
THE "HCP INTERCONNECT FACILITIES") DOWNSTREAM OF THE
CUSTODY TRANSFER POINT:
5.1 PIPING AND RELATED EQUIPMENT. A CONNECTING LINE WITH
HCP INTERCONNECT AGREEMENT 3
OCTOBER 30, 2023
OVERPRESSURE PROTECTION AS REQUIRED.
C. HUTCHINSON WILL, PROVIDE HCP WITH THE FOLLOWING: THE SIGNAL,
FROM THE OUTPUT OF THE CORIOLIS METER. HCP WILL PROVIDE ITS
OWN POWER, DATA COMMUNICATION EQUIPMENT AND
COMMUNICATION SERVICE. GROUNDING SHALL BE CONNECTED TO
THE HUTCHINSON'S GROUNDING GRID. HUTCHINSON WILL
CONSTRUCT AND INSTALL A BUILDING THAT WILL BE UTILIZED TO
HOUSE HUTCHINSON'S ELECTRONIC EQUIPMENT; RTU, FLOW
COMPUTER, ETC...
%. THE DATA INFORMATION COLLECTED BY THE RTU WILL BE ACCESSED
BY HUTCHINSON'S TELECOMMUNICATION FACILITIES ON A
CONTINUOUS BASIS. HUTCHINSON SHALL ALLOW HCP TO ACCESS
VOLUMES, TEMPERATURE AND PRESSURE AT THE INTERCONNECT.
HUTCHINSON WILL DEDICATE A COMMUNICATION PORT ON
HUTCHINSON'S FLOW COMPUTER FOR READ ONLY USE BY HCP. HCP
AGREES THAT SUCH INTERCONNECTION WILL NOT CAUSE
INTERFERENCE TO HUTCHINSON'S EQUIPMENT.
HUTCHINSON MAKES NO WARRANTIES AS TO THE ACCURACY OR
COMPLETENESS OF ANY DATA PROVIDED TO HCP PURSUANT TO THIS
AGREEMENT. HCP HEREBY ASSUMES FULL RESPONSIBILITY FOR AND
RISKS OF BODILY INJURY, DEATH OR PROPERTY DAMAGE ARISING OUT
OF HCP'S USE OF DATA PROVIDED BY HUTCHINSON. HCP HEREBY
RELEASES, DISCHARGES AND AGREES TO INDEMNIFY, DEFEND AND
HOLD HUTCHINSON HARMLESS FROM AND AGAINST ANY AND ALL
ACTIONS, CLAIMS, LIABILITIES OR DAMAGES ARISING OUT OF THE USE
OF SUCH DATA.
8. THE CUSTODY TRANSFER POINT WILL BE LOCATED AT THE OUTLET
FLANGE OF THE FINAL BLOCK VALVE ASSEMBLY. HCP SHALL INSTALL
A BLOCK VALVE AT THE INLET OF THE HCP CUSTODY TRANSFER POINT.
9. HCP SHALL BE RESPONSIBLE FOR THE CONSTRUCTION OF THE HCP
INTERCONNECT FACILITIES, PROVIDED THAT HUTCHINSON SHALL
HAVE THE RIGHT TO APPROVE THE DESIGN OF ALL HCP
INTERCONNECT FACILITIES AT THE HCP INTERCONNECT STATION.
HUTCHINSON SHALL HAVE THE RIGHT TO REVIEW ALL CONSTRUCTION
PROCEDURES AND TO INSPECT ALL CONSTRUCTION WORK IN
PROGRESS FOR THE HCP INTERCONNECT FACILITIES LOCATED AT THE
HCP INTERCONNECT STATION. IF IT SHOULD APPEAR THAT ANY OF
THE CONSTRUCTION WORK ON THE HCP INTERCONNECT FACILITIES
ARE ENDANGERING THE FACILITIES OF HUTCHINSON, THEN
HUTCHINSON SHALL HAVE THE RIGHT TO STOP WORK UNTIL
NECESSARY CORRECTIONS ARE MADE AND APPROVED BY
HCP INTERCONNECT AGREEMENT 4
OCTOBER 30, 2023
HUTCHINSON. HUTCHINSON SHALL, HAVE THE RIGHT TO HAVE AT
LEAST ONE REPRESENTATIVE PRESENT WHEN ANY WORK IS REQUIRED
AT THE HCP INTERCONNECT STATION. HCP SHALL NOTIFY
HUTCHINSON AS TO THE SCHEDULE AND THE NATURE OF ANY WORK
TO BE PERFORMED NO LESS THAN ONE (1) WEEK IN ADVANCE OF THE
WORK.
10. IF ADDITIONAL PROPERTY ADJACENT TO THE HCP INTERCONNECT
STATION IS NECESSARY TO CONSTRUCT, OPERATE AND TO OBTAIN
ACCESS TO THE HUTCHINSON INTERCONNECT FACILITIES, SUCH
ADDITIONAL PROPERTY AND RIGHT-OF-WAY SHALL BE ACQUIRED BY
HCP.
11. HCP SHALL OBTAIN ALL OF THE PROPERTY OR RIGHT-OF-WAY
NECESSARY FOR THE CONSTRUCTION, OPERATION AND ACCESS TO
THE HCP INTERCONNECT STATION AND HCP'S RELATED FACILITIES.
HCP SHALL OBTAIN AND COMPLY WITH ALL APPLICABLE REGULATORY
AND/OR ENVIRONMENTAL PERMITS AND CLEARANCES NECESSARY
FOR THE CONSTRUCTION AND OPERATION OF HCP'S FACILITIES. HCP
SHALL BE IN COMPLIANCE WITH ALL FEDERAL, STATE, AND LOCAL
LAWS AND REGULATIONS THAT GOVERN THE OPERATION OF THE HCP
INTERCONNECT FACILITIES. HCP SHALL BE RESPONSIBLE FOR THE
GENERAL MAINTENANCE AND SITE UPKEEP (INCLUDING PAINTING,
WEED CONTROL, AND GENERAL BUILDING AND GROUND
MAINTENANCE) OF THE HCP INTERCONNECT FACILITIES.
12. HCP SHALL OBTAIN ALL OF THE PROPERTY OR RIGHT-OF-WAY
NECESSARY FOR THE CONSTRUCTION, OPERATION AND ACCESS TO
THE HUTCHINSON INTERCONNECT FACILITIES. HUTCHINSON SHALL
OBTAIN AND BE IN COMPLIANCE WITH ALL APPLICABLE REGULATORY
AND/OR ENVIRONMENTAL PERMITS AND CLEARANCES NECESSARY
FOR THE CONSTRUCTION AND OPERATION OF ITS FACILITIES.
HUTCHINSON SHALL BE IN COMPLIANCE WITH ALL FEDERAL, STATE,
AND LOCAL LAWS AND REGULATIONS THAT GOVERN THE OPERATION
OF THE HUTCHINSON INTERCONNECT FACILITIES.
13. HUTCHINSON WILL OPERATE AND MAINTAIN THE HUTCHINSON
INTERCONNECT FACILITIES. HCP SHALL CAUSE TO BE PAID TO
HUTCHINSON A MONTHLY OPERATION AND MAINTENANCE FEE FOR
ROUTINE SERVICES OF $660 PER MONTH EFFECTIVE WITH THE IN-
SERVICE DATE OF THE HUTCHINSON INTERCONNECT FACILITIES. FOR
PURPOSES OF THIS AGREEMENT, ROUTINE SERVICES SHALL INCLUDE
THE FOLLOWING: GENERAL MAINTENANCE AND MONTHLY TESTING OF
THE HUTCHINSON INTERCONNECT FACILITIES (INCLUDING MONTHLY
CALIBRATION OF PRESSURE AND TEMPERATURE TRANSMITTERS,
REMOTE TERMINAL UNIT MAINTENANCE, AND ANNUAL INSPECTION AND
HCP INTERCONNECT AGREEMENT J
OCTOBER 30, 2023
PROVING OF METERS); NOT INCLUDING RESTORATION OF DAMAGE TO
RIGHT-OF-WAY, SITES, BUILDINGS, THE HUTCHINSON INTERCONNECT
FACILITIES, OR PIPING CAUSED BY FLOODING, FIRE OR FROST HEAVING.
13.1 HCP SHALL ALSO REIMBURSE HUTCHINSON FOR ANY
MATERIALS AND SUPPLIES PURCHASED AND CONTRACTED
SERVICES (AT THE RATES AS PROVIDED IN SECTIONS 17.2 AND
17.3) IN CONNECTION WITH THE PROVISION OF ROUTINE
SERVICES.
14. IN ADDITION TO THE ROUTINE SERVICES SET FORTH ABOVE,
HUTCHINSON SHALL PERFORM SPECIAL. SERVICES FROM TIME TO
TIME AS HUTCHINSON DETERMINES, IN ITS SOLE DISCRETION, ARE
NECESSARY TO MAINTAIN THE HUTCHINSON INTERCONNECT
FACILITIES UPON THE PRIOR WRITTEN APPROVAL. OF HCP. "SPECIAL.
SERVICES" MAY INCLUDE, WITHOUT LIMITATION, THE FOLLOWING: (I)
MAINTENANCE OF ROADS; (II) SPECIAL. CONSTRUCTION; (III)
OPERATION OR MAINTENANCE SERVICES; (IV) RECONSTRUCTION AND
RECONDITIONING OF EQUIPMENT; AND (V) OVERHAUL., AND/OR
REPLACEMENT OF THE HUTCHINSON INTERCONNECT FACILITIES.
HUTCHINSON WILL PROCURE AND FURNISH ALL MATERIALS,
EQUIPMENT, SUPPLIES, SERVICES, AND LABOR NECESSARY FOR SUCH
SPECIAL. SERVICES. IF HCP APPROVES SUCH SPECIAL. SERVICES,
EXPENSES WILL BE PAID IN ACCORDANCE WITH SECTION 17 BELOW,
AND HUTCHINSON SHALL INVOICE HCP FOR ALL SUCH EXPENSES SO
INCURRED AND HCP SHALL PAY THE INVOICED AMOUNTS.
15. IN CASE OF AN EXPLOSION, FIRE, STORM, OR OTHER EMERGENCY THAT
MAY THREATEN LIFE OR PROPERTY OR RENDER THE HUTCHINSON
INTERCONNECT FACILITIES OR ANY PART THEREOF INCAPABLE OF
CONTINUED OPERATION, HUTCHINSON MAY, AT ITS SOLE DISCRETION,
PROVIDE SUCH SERVICES (HEREIN CALLED "EMERGENCY SERVICES")
AND INCUR SUCH EXPENSES AS IN ITS SOLE OPINION ARE REQUIRED
AND CAN BE PROVIDED BY HUTCHINSON TO DEAL. WITH SUCH
EMERGENCY, AND SHALL IMMEDIATELY REPORT SUCH EMERGENCY TO
HCP. AS SOON AS PRACTICAL. AFTER SUCH EXPENSES HAVE BEEN
INCURRED, HUTCHINSON SHALL NOTIFY HCP THAT SUCH EXPENSES
HAVE BEEN INCURRED, AND IN ACCORDANCE WITH SECTION 16
BELOW, SHALL INVOICE HCP FOR ALL SUCH EXPENSES SO INCURRED
AND HCP SHALL PAY THE INVOICED AMOUNTS.
16. HUTCHINSON SHALL INVOICE HCP ON OR BEFORE THE LAST DAY OF
EACH MONTH FOR THE FOLLOWING AMOUNTS: (I) THE FOLLOWING
MONTHS' OPERATION AND MAINTENANCE FEE; (II) THE PREVIOUS
MONTH'S MATERIALS AND SUPPLIES PURCHASED; (III) THE PREVIOUS
HCP INTERCONNECT AGREEMENT 6
OCTOBER 30, 2023
MONTH'S CONTRACTED SERVICES; AND (IV) ANY AMOUNT DUE UNDER
SECTIONS 14 AND 15. THE FIRST INVOICE SHALL, INCLUDE A PRO-
RATION FOR THE MONTH THAT THE HUTCHINSON INTERCONNECT
FACILITIES ARE PLACED IN SERVICE. INCREASES IN EQUIPMENT AND
PERSONNEL RATES SHALL BE BASED ON HUTCHINSON'S ACTUAL
INCREASE IN SUCH COSTS FROM ITS 2022 COSTS, AND SHALL NOT
EXCEED THE RATES CHARGED TO ANY OTHER ENTITY FOR USE OF
HUTCHINSON'S PERSONNEL AND EQUIPMENT. HUTCHINSON WILL
NOTIFY HCP OF ANY SUCH INCREASE AT LEAST 60 DAYS PRIOR TO
THE ANNIVERSARY DATE OF THE IN-SERVICE DATE OF THE
HUTCHINSON INTERCONNECT FACILITIES. IN THE EVENT PAYMENT OF
ANY INVOICE AMOUNT IS NOT MADE WITHIN 10 DAYS OF RECEIPT OF
THE INVOICE, INTEREST SHALL ACCRUE ON ALL UNPAID AMOUNTS AT
THE RATE OF 1 0% PER ANNUM.
17. THE CHARGES FOR SPECIAL SERVICES SHALL BE COMPUTED IN
ACCORDANCE WITH THE RATES PROVIDED IN EXHIBIT A, ATTACHED
HERETO AND INCORPORATED BY THIS REFERENCE. THE CHARGES FOR
ANY STANDBY EQUIPMENT, MATERIALS AND SUPPLIES, CONTRACTED
SERVICES, RENTALS AND REIMBURSABLE EXPENSES OF EMPLOYEES
INCURRED IN CONJUNCTION WITH THE PERFORMANCE OF THE SPECIAL
SERVICES SHALL BE IN ADDITION TO THE CHARGES COMPUTED IN
ACCORDANCE WITH THE RATES PROVIDED IN EXHIBIT A AND SHALL BE
CALCULATED IN ACCORDANCE WITH SECTIONS 1 7. 1 THROUGH 17.6
BELOW.
THE CHARGES FOR EMERGENCY SERVICES SHALL BE COMPUTED IN
ACCORDANCE WITH THE RATES PROVIDED IN EXHIBIT A. THE CHARGES
FOR ANY STANDBY EQUIPMENT, MATERIALS AND SUPPLIES,
CONTRACTED SERVICES, RENTALS AND REIMBURSABLE EXPENSES OF
EMPLOYEES INCURRED IN CONJUNCTION WITH THE PERFORMANCE OF
THE EMERGENCY SERVICES SHALL BE IN ADDITION TO THE CHARGES
COMPUTED IN ACCORDANCE WITH THE RATES PROVIDED IN EXHIBIT A
AND SHALL BE CALCULATED IN ACCORDANCE WITH SECTIONS 17.1
THROUGH 17.6 BELOW.
17.1 STANDBY EQUIPMENT. THE CHARGES FOR EQUIPMENT
MOBILIZED AND STANDING BY FOR THE PROVISIONS OF SPECIAL
SERVICES OR EMERGENCY SERVICES SHALL BE COMPUTED
USING ONE-HALF (1 /2) THE RATES PROVIDED IN EXHIBIT A.
17.2 MATERIALS AND SUPPLIES. THE CHARGES FOR MATERIALS AND
SUPPLIES PURCHASED IN CONJUNCTION WITH THE PROVISION
OF ROUTINE SERVICES, SPECIAL SERVICES OR EMERGENCY
SERVICES SHALL BE THE ACTUAL COST OF SUCH MATERIALS
HCP INTERCONNECT AGREEMENT 7
OCTOBER 30, 2023
AND SUPPLIES PLUS 15% (FIFTEEN PERCENT) OF THE COST FOR
BILLING AND HANDLING.
17.3 CONTRACTED SERVICES. THE CHARGES FOR ANY PORTION OF
THE ROUTINE SERVICES, SPECIAL SERVICES, OR EMERGENCY
SERVICES THAT HUTCHINSON CONTRACTS FOR WITH OTHERS
SHALL BE THE ACTUAL COST OF SUCH SERVICES PLUS 15%
(FIFTEEN PERCENT) OF THE COST FOR BILLING AND HANDLING.
17.4 RENTALS. THE CHARGES FOR ANY RENTALS USED IN
CONJUNCTION WITH THE PROVISION OF SPECIAL SERVICES OR
EMERGENCY SERVICES SHALL BE THE ACTUAL COST OF SUCH
RENTAL PLUS 15% (FIFTEEN PERCENT) OF THE COST FOR
BILLING AND HANDLING.
17.5 REIMBURSABLE EXPENSES OF EMPLOYEES. REASONABLE
PERSONAL AND TRAVEL EXPENSES OF EMPLOYEES IN THE
PERFORMANCE OF SPECIAL OR EMERGENCY SERVICES WHICH
INCLUDE MEALS, LODGING AND THE NECESSARY OUT-OF-
POCKET REIMBURSABLE EXPENDITURES INCURRED BY
EMPLOYEES IN THE PERFORMANCE OF THEIR DUTIES.
17.6 CALCULATION OF CHARGES USING THE RATES SET FORTH IN
EXHIBIT A. ALL RATES SET FORTH IN EXHIBIT A INCLUDE FUEL,
LABOR BURDENS AND OVERHEADS. THE NUMBER OF
HOURS/MILES USED IN CALCULATING THE CHARGES FOR
SPECIAL SERVICES, EMERGENCY SERVICES, AND STANDBY
EQUIPMENT WILL BEGIN WHEN EQUIPMENT AND PERSONNEL
LEAVE THEIR HOME BASE LOCATION AND CONTINUE UNTIL THEIR
RETURN TO THEIR HOME BASE.
18. HCP SHALL REIMBURSE HUTCHINSON FOR ALL OF THE COSTS FOR
THE DESIGN, PURCHASE, CONSTRUCTION AND INSTALLATION OF THE
HUTCHINSON INTERCONNECT FACILITIES. HCP SHALL ALSO
REIMBURSE HUTCHINSON FOR ALL TAXES INCURRED BY HUTCHINSON
IN CONNECTION WITH THE CONSTRUCTION, OPERATION AND
MAINTENANCE OF THE HUTCHINSON INTERCONNECT FACILITIES.
SUBJECT TO 1 8.3, HCP SHALL REIMBURSE HUTCHINSON FOR: (I) THE
COSTS AND TAXES AS PROVIDED IN THIS SECTION; (II) THE OPERATION
AND MAINTENANCE FEE AND OTHER CHARGES AS PROVIDED IN
SECTIONS 13 AND 1 7; AND (III) THE FEES AND EXPENSES FOR SPECIAL
SERVICES AND EMERGENCY SERVICES AS PROVIDED IN SECTIONS 14,
15 AND 17, WITHIN 10 DAYS OF THE DATE OF AN INVOICES)
REFLECTING THE AMOUNTS TO BE REIMBURSED.
1 8. 1 IF PAYMENT FOR ANY OF THE INVOICED AMOUNTS AS PROVIDED
HCP INTERCONNECT AGREEMENT 8
OCTOBER 30, 2023
IN THE PARAGRAPH ABOVE IS NOT MADE BY HCP WITHIN 10
DAYS OF THE DATE OF SUCH INVOICE(S), THE UNPAID BALANCE
SHALL, BEAR INTEREST FROM THE 1 OTH DAY AFTER THE BILLING
DATE UNTIL PAID AT THE RATE OF 10% PER ANNUM. ALL
COMPUTATIONS OF INTEREST SHALL BE MADE ON THE BASIS OF
A YEAR OF 360 DAYS FOR THE ACTUAL NUMBER OF DAYS.
18.2 HCP MAY, WITHIN ONE CALENDAR YEAR FROM THE DATE OF ANY
INVOICE, TAKE WRITTEN EXCEPTION TO ANY INVOICE, BILLING OR
STATEMENT RENDERED BY HUTCHINSON FOR ANY AMOUNT
CHARGED. HCP SHALL NEVERTHELESS PAY IN FULL WHEN DUE
ALL INVOICES, BILLINGS OR STATEMENTS SUBMITTED BY
HUTCHINSON FOR ALL COSTS INCURRED BY HUTCHINSON FOR
WHICH HCP IS REQUIRED TO REIMBURSE HUTCHINSON AS
PROVIDED IN THIS AGREEMENT. IF, HOWEVER, THE AMOUNT AS
TO WHICH SUCH WRITTEN EXCEPTION IS TAKEN OR ANY PART
THEREOF IS ULTIMATELY DETERMINED BY THE PARTIES NOT TO
HAVE BEEN INCURRED IN ACCORDANCE WITH THIS AGREEMENT
OR NOT TO HAVE BEEN A PROPER EXPENSE OR EXPENDITURE
INCURRED IN GOOD FAITH WHEN MADE, SUCH AMOUNT OR
PORTION THEREOF (AS THE CASE MAY BE) SHALL BE REFUNDED
BY HUTCHINSON TO HCP TOGETHER WITH INTEREST THEREON
AT THE RATE OF INTEREST PER ANNUM AS DEFINED IN THE
PRECEDING PARAGRAPH ABOVE FOR THE PERIOD FROM THE
DATE OF PAYMENT BY HCP TO THE DATE OF REFUND BY
HUTCHINSON.
18.3 HCP, AFTER 15 DAYS' NOTICE IN WRITING TO HUTCHINSON,
SHALL HAVE THE RIGHT DURING NORMAL BUSINESS HOURS TO
AUDIT, AT ITS OWN EXPENSE, FOR A PERIOD OF ONE YEAR AFTER
THE END OF THE YEAR IN WHICH THE HUTCHINSON
INTERCONNECT FACILITIES ARE COMPLETED AND DETERMINED
READY FOR SERVICE, AND DURING THE TERM OF THIS
AGREEMENT, HUTCHINSON'S BOOKS AND RECORDS RELATING
TO THE HUTCHINSON INTERCONNECT FACILITIES. SUCH AUDITS
SHALL NOT BE COMMENCED MORE OFTEN THAN ONCE EACH
CALENDAR YEAR. HUTCHINSON SHALL RETAIN ALL ACCOUNTS
AND RECORDS RELATING TO THE CONSTRUCTION OF THE
HUTCHINSON INTERCONNECT FACILITIES FOR SAID ONE-YEAR
PERIOD. IN THE EVENT ANY ERRORS ARE DETECTED BY SUCH
AUDIT, PAYMENT WILL BE MADE WITHIN TEN (1 O) BUSINESS DAYS
BY THE PARTY WHOSE PAYMENT OR OVER COLLECTION HAS
BEEN IN ERROR.
19. HUTCHINSON WILL INSPECT AND TEST THE METERING
INSTRUMENTATION IN ACCORDANCE WITH HUTCHINSON'S OPERATING
HCP INTERCONNECT AGREEMENT 9
OCTOBER 30, 2023
PROCEDURES, WHILE HCP WILL, HAVE THE RIGHT TO WITNESS SUCH
INSPECTION AND TESTING. THE METER WILL UNDERGO A FLOW
CALIBRATION PRIOR TO DELIVERY. THE METER CALIBRATION REPORTS
CAN BE PROVIDED TO HCP. HUTCHINSON SHALL GIVE HCP PRIOR
NOTICE OF ALL SCHEDULED INSTRUMENTATION INSPECTIONS AND
TESTING. HCP WILL ALSO HAVE THE RIGHT TO AUDIT THE RECORDS OF
THE MEASUREMENT EQUIPMENT AT THE METERING FACILITIES.
20. ALL METERING OF GAS QUANTITIES DELIVERED AND SUBSEQUENT
BILLING SHALL BE PERFORMED BY HUTCHINSON UTILIZING EFM.
FLOWING VOLUMES WILL BE CALCULATED IN ACCORDANCE WITH
INDUSTRY STANDARDS. GAS QUALITY VALUES WILL BE PROVIDED AS
DETERMINED BY HUTCHINSON AND WILL BE UTILIZED FOR PURPOSES
OF CALCULATING FLOW PARAMETERS.
21. HCP SHALL BE RESPONSIBLE FOR ANY GAS LOST DUE TO THE HCP
INTERCONNECT FACILITIES. HCP WILL BE RESPONSIBLE FOR ALL
LOSS AND DAMAGE TO HUTCHINSON'S PROPERTY WHICH RESULTS
FROM THE NEGLIGENT ACTS OR OMISSIONS OF HCP OR ITS AGENTS,
EMPLOYEES, REPRESENTATIVE OR CONTRACTORS IN THE DESIGN,
CONSTRUCTION, OPERATION OR MAINTENANCE OF HCP
INTERCONNECT FACILITIES.
22. HUTCHINSON SHALL BE RESPONSIBLE FOR ANY GAS LOST DUE TO THE
FACILITIES IT OWNS. HUTCHINSON WILL BE RESPONSIBLE FOR ALL
LOSS AND DAMAGE TO HCP'S PROPERTY WHICH RESULTS FROM THE
NEGLIGENT ACTS OR OMISSIONS OF HUTCHINSON OR ITS AGENTS,
EMPLOYEES, REPRESENTATIVES OR CONTRACTORS IN THE DESIGN,
CONSTRUCTION, OPERATION OR MAINTENANCE OF HUTCHINSON'S
FACILITIES.
23. IN THE EVENT OF HUTCHINSON OR HCP BEING RENDERED UNABLE,
WHOLLY OR IN PART, BY FORCE MAJEURE TO CARRY OUT ITS
OBLIGATIONS UNDER THIS AGREEMENT, EXCEPT PAYMENT OF MONEY,
IT IS AGREED UPON BY SUCH PARTY GIVING NOTICE AND REASONABLY
FULL PARTICULARS OF SUCH FORCE MAJEURE IN WRITING OR BY
FACSIMILE OR TELEPHONE FOLLOWED BY WRITTEN CONFIRMATION TO
THE OTHER PARTY WITHIN A REASONABLE TIME AFTER THE
OCCURRENCE OF THE CAUSE RELIED ON, THEN THE OBLIGATIONS OF
THE PARTY GIVING SUCH NOTICE, SO FAR AS IT IS AFFECTED BY SUCH
FORCE MAJEURE, SHALL BE SUSPENDED DURING THE CONTINUANCE
OF ANY LIABILITY SO CAUSED, BUT FOR NO LONGER PERIOD, AND SUCH
CAUSE SHALL SO FAR AS POSSIBLE BE REMEDIED WITH ALL
REASONABLE DISPATCH.
THE TERM "FORCE MAJEURE" AS USED HEREIN, SHALL MEAN ANY ACTS
HCP INTERCONNECT AGREEMENT 10
OCTOBER 30, 2023
OF GOD, STRIKES, LOCKOUTS OR OTHER LABOR DISPUTES OR
INDUSTRIAL. DISTURBANCES, ACTS OF THE PUBLIC ENEMY, WARS,
TERRORISM, BLOCKADES, INSURRECTIONS, RIOTS, EPIDEMICS,
PANDEMICS, LANDSLIDES, LIGHTNING, EARTHQUAKES, FIRES,
HURRICANES, TORNADOES, OTHER STORMS, FLOODS, WASHOUTS OR
OTHER ACT OF NATURE, CIVIL. DISTURBANCES, EXPLOSIONS,
BREAKAGE, ACCIDENT OR REPAIRS TO MACHINERY OR LINES OF PIPE,
TEMPORARY OR PERMANENT FAILURE OF GAS SUPPLY, INABILITY TO
OBTAIN OR UNAVOIDABLE DELAY IN OBTAINING PIPE, MATERIALS OR
OTHER EQUIPMENT, ACTS OR BINDING ORDERS OF ANY COURT OR
OTHER GOVERNMENTAL. AUTHORITY WHETHER OR NOT HAVING
JURISDICTION, AND ANY OTHER CAUSE, WHETHER SIMILAR OR
DISSIMILAR TO ANY ABOVE ENUMERATED, NOT REASONABLY WITHIN
THE CONTROL. OF THE PARTY CLAIMING RELIEF FROM LIABILITY AND
WHICH SUCH PARTY WAS OR WOULD HAVE BEEN UNABLE TO PREVENT
BY THE EXERCISE OF DUE DILIGENCE. FAILURE TO PREVENT OR SETTLE
ANY STRIKE OR STRIKES OR ANY DISPUTE LEADING TO A LOCKOUT
SHALL NOT BE CONSIDERED TO BE MATTER WITHIN THE CONTROL. OF
THE PARTY CLAIMING RELIEF.
24. HCP SHALL DEFEND, PROTECT, INDEMNIFY, AND HOLD HARMLESS
HUTCHINSON, ITS MEMBERS, DIRECTORS, OFFICERS, EMPLOYEES AND
AGENTS FROM AND AGAINST ALL LIABILITY, CLAIMS, LIENS, COSTS,
EXPENSES, DEMANDS, SUITS AND CAUSES OF ACTION OF EVERY KIND
AND CHARACTER ARISING IN FAVOR OF ANY PERSON OR PARTY,
INCLUDING THE PARTIES HERETO, AND THEIR EMPLOYEES AND
REPRESENTATIVES, ON ACCOUNT OF PERSONAL. INJURIES OR DEATH,
OR DAMAGES TO PROPERTY (INCLUDING WITHOUT LIMITATION, CLAIMS
FOR POLLUTION AND ENVIRONMENTAL. DAMAGE) IN ANY WAY DIRECTLY
RESULTING FROM THE NEGLIGENT ACTS OR OMISSIONS OF HCP, ITS
AGENTS, EMPLOYEES, REPRESENTATIVES OR CONTRACTORS. THIS
INDEMNITY INCLUDES HCP'S AGREEMENT TO PAY ALL COSTS OF
DEFENSE, INCLUDING WITHOUT LIMITATION ATTORNEYS' FEES,
INCURRED BY ANY PERSON OR PARTY INDEMNIFIED HEREIN.
25. EXCEPT AS PROVIDED IN SECTION %, HUTCHINSON SHALL DEFEND,
PROTECT, INDEMNIFY, AND HOLD HARMLESS HCP, ITS MEMBERS,
DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS FROM AND AGAINST
ALL LIABILITY, CLAIMS, LIENS, COSTS, EXPENSES, DEMANDS, SUITS AND
CAUSES OF ACTION OF EVERY KIND AND CHARACTER ARISING IN FAVOR
OF ANY PERSON OR PARTY, INCLUDING THE PARTIES HERETO, AND
THEIR EMPLOYEES AND REPRESENTATIVES, ON ACCOUNT OF
PERSONAL. INJURIES OR DEATH, OR DAMAGES TO PROPERTY
(INCLUDING WITHOUT LIMITATION, CLAIMS FOR POLLUTION AND
ENVIRONMENTAL. DAMAGE) IN ANY WAY DIRECTLY RESULTING FROM
THE NEGLIGENT ACTS OR OMISSIONS OF HUTCHINSON, ITS AGENTS,
HCP INTERCONNECT AGREEMENT
OCTOBER 30, 2023
EMPLOYEES, REPRESENTATIVES OR CONTRACTORS. THIS INDEMNITY
INCLUDES HUTCHINSON'S AGREEMENT TO PAY ALL COSTS OF
DEFENSE, INCLUDING WITHOUT LIMITATION ATTORNEYS' FEES,
INCURRED BY ANY PERSON OR PARTY INDEMNIFIED HEREIN.
26. HCP AGREES THAT THE OBLIGATIONS OF INDEMNIFICATION
HEREUNDER INCLUDE, BUT WITHOUT LIMITATION, LIENS BY THIRD
PERSONS AGAINST HUTCHINSON AND ITS PROPERTY BECAUSE OF
LABOR, SERVICES, MATERIALS, OR ANY OTHER SUBJECT OF LIEN,
FURNISHED TO HCP, ITS ASSIGNEES OR SUBCONTRACTORS, IN
CONNECTION WITH THE WORK PERFORMED BY HCP HEREUNDER.
27. HUTCHINSON AGREES THAT THE OBLIGATIONS OF INDEMNIFICATION
HEREUNDER INCLUDE, BUT WITHOUT LIMITATION, LIENS BY THIRD
PERSONS AGAINST HCP AND ITS PROPERTY BECAUSE OF LABOR,
SERVICES, MATERIALS, OR ANY OTHER SUBJECT OF LIEN, FURNISHED
TO HUTCHINSON, ITS ASSIGNEES OR SUBCONTRACTORS, IN
CONNECTION WITH THE WORK PERFORMED BY HUTCHINSON
HEREUNDER.
28. NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY
INDIRECT, CONSEQUENTIAL, SPECIAL, EXEMPLARY OR PUNITIVE
DAMAGES OF ANY NATURE WHATSOEVER ARISING OUT OF OR RELATED
TO ACTIONS TAKEN OR OMISSIONS OF SUCH PARTY IN CONNECTION
WITH THIS AGREEMENT.
29. AT ALL TIMES DURING THIS AGREEMENT, EACH PARTY SHALL OBTAIN
AND MAINTAIN THE FOLLOWING INSURANCE:
(A) HCP SHALL PROVIDE WORKER'S COMPENSATION
INSURANCE FOR ALL OF ITS EMPLOYEES IN
ACCORDANCE WITH THE STATUTORY REQUIREMENTS OF
THE STATE OF MINNESOTA. HCP SHALL ALSO CARRY
EMPLOYER'S LIABILITY COVERAGE WITH MINIMUM LIMITS
AS FOLLOWS:
• $500,000 - BODILY INJURY BY DISEASE PER
EMPLOYEE
• $500,000 - BODILY INJURY BY DISEASE
AGGREGATE
• $500,000 - BODILY INJURY BY ACCIDENT
(B) HCP SHALL MAINTAIN COMMERCIAL GENERAL LIABILITY
INSURANCE IN A MINIMUM AMOUNT OF $1 ,500,000 PER
OCCURRENCE; $2,000,000 ANNUAL AGGREGATE.
HCP INTERCONNECT AGREEMENT 12
OCTOBER 30, 2023
(C) AUTOMOBIL.E L_IABIL.ITY INSURANCE COVERING OWNED,
NON -OWNED, AND HIRED VEHICLES WITH MINIMUM
COMBINED SINGLE LIABILITY LIMIT OF $ 1,000,000 PER
OCCURRENCE.
(D) HCP SHALL MAINTAIN EXCESS LIABILITY INSURANCE
COVERAGE IN A MINIMUM AMOUNT OF $2,000,000.
HUC'S MAXIMUM LIABILITY IS LIMITED TO A COMBINED
SINGLE LIMIT OF $ 1 ,500,000 BY MINNESOTA STATUTE.
THE INSURANCE REQUIRED IN (B), (C) AND (D) SHALL REFLECT THAT
THE OTHER PARTY IS AN ADDITIONAL INSURED. WITHIN THIRTY (30)
DAYS OF EFFECTIVE DATE OF THIS AGREEMENT, EACH PARTY SHALL
FURNISH TO THE OTHER PARTY CERTIFICATES AS EVIDENCE SHOWING
THAT THE INSURANCE POLICIES TO BE CARRIED IN ACCORDANCE WITH
THIS PROVISION HAVE BEEN OBTAINED. ALL INSURANCE TO BE
CARRIED PURSUANT TO THE ABOVE SHALL BE ENDORSED TO REQUIRE
THE INSURER TO FURNISH 30 DAYS' WRITTEN NOTICE PRIOR TO
EFFECTIVE DATE OF ANY MODIFICATION OR CANCELLATION OF SUCH
INSURANCE TO THE CERTIFICATE HOLDER. THE PARTIES AGREE THAT
THE LIMITS OF INSURANCE WILL BE AT LEAST IN AN AMOUNT EQUAL. TO
THE MAXIMUM LIABILITY LIMITS FOR MUNICIPALITIES IN MINNESOTA AS
MAY BE ADJUSTED FROM TIME TO TIME.
30. DELIVERY OF NATURAL. GAS VOLUMES TO THE HCP INTERCONNECT
FACILITIES WILL BE MADE PURSUANT TO THE NATURAL. GAS FIRM
TRANSPORTATION CAPACITY AGREEMENT (THE "TRANSPORTATION
AGREEMENT") EXECUTED BETWEEN HUTCHINSON AND HEARTLAND
CORN PRODUCTS. SHOULD ANY CONFLICT ARISE BETWEEN ANY
PROVISION OF THIS INTERCONNECT AGREEMENT AND THAT OF THE
TRANSPORTATION AGREEMENT, THE PROVISIONS OF HUTCHINSON'S
TRANSPORTATION AGREEMENTS SHALL CONTROL..
31. HUTCHINSON SHALL HAVE THE RIGHT TO INSPECT AND AUDIT ALL
BOOKS, RECORDS OR ANY OTHER SUPPORTING EVIDENCE OF HCP
THAT HUTCHINSON DEEMS NECESSARY IN ORDER TO DETERMINE
HCP'S COMPLIANCE WITH THIS AGREEMENT, HUTCHINSON POLICIES
AND PROCEDURES, REGULATORY AUTHORITIES OR OTHER LAWS AND
REGULATIONS. HUTCHINSON SHALL HAVE THE RIGHT TO RECEIVE
COPIES OF ANY SUCH DOCUMENTATION REQUESTED. HUTCHINSON'S
RIGHT TO AUDIT SHALL EXTEND THROUGHOUT THE TERM OF THIS
AGREEMENT AND FOR A PERIOD OF THREE YEARS THEREAFTER OR
LONGER IF REQUIRED BY LAW.
HCP INTERCONNECT AGREEMENT 13
OCTOBER 30, 2023
32. THIS AGREEMENT SHALL, NOT BE ASSIGNED OR TRANSFERRED BY
EITHER PARTY IN ANY MANNER, BY OPERATION OF LAW OR OTHERWISE,
WITHOUT THE WRITTEN CONSENT OF THE OTHER PARTY, WHICH
CONSENT SHALL NOT BE UNREASONABLY WITHHELD OR DELAYED;
PROVIDED HOWEVER, EITHER PARTY MAY WITHOUT THE NEED FOR
CONSENT FROM THE OTHER PARTY (AND WITHOUT RELIEVING THE
ASSIGNING PARTY FROM LIABILITY HEREUNDER) TRANSFER OR ASSIGN
ITS RIGHTS AND OBLIGATIONS HEREUNDER TO ANY PARENT, AFFILIATE
OR SUBSIDIARY OF SUCH PARTY; PROVIDED, HOWEVER, THAT IN EACH
SUCH CASE ANY SUCH ASSIGNEE SHALL AGREE IN WRITING TO BE
BOUND BY THE TERMS AND CONDITIONS HEREOF. SUBJECT THERETO,
THIS AGREEMENT SHALL INURE TO THE BENEFIT OF; AND BE BINDING
UPON, THE SUCCESSORS, ASSIGNS, AND LEGAL REPRESENTATIVES OF
THE RESPECTIVE PARTIES.
33. THIS AGREEMENT SHALL RUN CONCURRENTLY WITH THE NATURAL
GAS FIRM TRANSPORTATION CAPACITY AGREEMENT ENTERED INTO BY
HUTCHINSON UTILITIES AND HEARTLAND CORN PRODUCTS ON OR
ABOUT THE SAME DATE AS THIS AGREEMENT. IN THE EVENT SAID
TRANSPORTATION CAPACITY AGREEMENT IS TERMINATED, THIS
AGREEMENT SHALL AUTOMATICALLY BE TERMINATED; IN THE EVENT
SAID TRANSPORTATION CAPACITY AGREEMENT IS EXTENDED BEYOND
ITS INITIAL TERM, THIS AGREEMENT SHALL BE AUTOMATICALLY
EXTENDED FOR AN IDENTICAL EXTENDED TERM. IN THE EVENT THAT
THIS AGREEMENT IS TERMINATED BY EITHER PARTY, ANY AND ALL
OUTSTANDING EXPANSES SHALL BE PAID WITHIN 10 BUSINESS DAYS
TO HUTCHINSON UTILITIES. THIS PROVISION SHALL NOT PREVENT THE
PARTIES FROM ENTERING INTO A NEW, EXTENDED, OR AMENDED
INTERCONNECT AGREEMENT TO REPLACE THIS AGREEMENT,
PROVIDED THAT SUCH NEW, EXTENDED, OR AMENDED AGREEMENT IS
IN WRITING, SPECIFICALLY PROVIDES THAT IT IS A MODIFICATION OF
THIS AGREEMENT, AND IS EXECUTED BY BOTH PARTIES.
34. THIS AGREEMENT SETS FORTH ALL UNDERSTANDINGS BETWEEN THE
PARTIES AS OF THE EFFECTIVE DATE HEREIN. ANY PRIOR CONTRACTS,
UNDERSTANDINGS AND REPRESENTATIONS, WHETHER ORAL OR
WRITTEN, RELATING TO THE MATTERS ADDRESSED IN THIS AGREEMENT
ARE MERGED INTO AND SUPERSEDED BY THIS AGREEMENT. THIS
AGREEMENT MAY BE AMENDED ONLY BY A WRITING EXECUTED BY BOTH
PARTIES.
35. IT IS UNDERSTOOD BY HCP THAT IT IS ECONOMICALLY FEASIBLE TO
ENTER INTO THIS AGREEMENT TO PROVIDE A PIPELINE INTERCONNECT
TO HCP ONLY DUE TO THE FACT THAT HUTCHINSON IS AN
UNREGULATED MUNICIPAL UTILITY. IF AT ANY TIME ANY OF THE
ACTIVITIES COVERED UNDER THIS AGREEMENT BECOME SUBJECT TO
HCP INTERCONNECT AGREEMENT 14
OCTOBER 30, 2023
REGULATION BY THE PUBLIC UTILITIES COMMISSION OF THE STATE OF
MINNESOTA OR ANY OTHER STATE OR FEDERAL AGENCY WHICH
WOULD NOT CURRENTLY CONTROL THE ACTIVITIES OF HUTCHINSON
UNDER THIS AGREEMENT, HUTCHINSON SHALL HAVE THE OPTION, AT
ITS SOLE DISCRETION, TO PASS ALL FRORATA COSTS INCURRED, DUE
TO HUTCHINSON'S REGULATION, TO HCP FOR THE LENGTH OF THIS
AGREEMENT.
36. THIS AGREEMENT, AS WELL AS THE TRANSPORTATION CAPACITY
AGREEMENT ENTERED INTO BETWEEN HUTCHINSON UTILITIES AND
HEARTLAND CORN PRODUCTS SHALL NOT TAKE EFFECT UNTIL
HUTCHINSON HAS RECEIVED A SIGNED RESOLUTION BY THE
GOVERNING BOARD OF HCP DIRECTING HUTCHINSON TO PROCEED
WITH ITS RESPONSIBILITIES UNDER THIS AGREEMENT.
HCP INTERCONNECT AGREEMENT 15
OCTOBER 30, 2023
IN WITNESS WHEREOF, HCP AND HUTCHINSON HAVE EXECUTED THIS
AGREEMENT IN TWO (2) DUPLICATE ORIGINALS, EFFECTIVE AS OF THE DATE FIRST
WRITTEN ABOVE.
HUTCHINSON UTILITIES COMMISSION
NAME:
TITLE:-- COMMISSION PRESIDENT
DATE:
WITNESS:
DATE:
WITNESS:
DATE:
HCP INTERCONNECT AGREEMENT 16
OCTOBER 30, 2023
HEARTLAND CORN PRODUCTS
BY:
NAME: y 1 iC 1
t
TITLE:
DATE:
WITNESS:
DATE: 11-1-ZO2-3
EXHIBIT A
PAGE 1 OF 2
HUTCHINSON UTILITIES COMMISSON
2022 EQUIPMENT RATES
EQUIPMENT
RATE PER HOUR
PICKUP
$47.00
BACKHOE
$80.00
WELDER
$52.00
AIR COMPRESSOR
$42.00
VACTRON
$70.00
*NOTE: ALL EQUIPMENT RENTED OR 3RD PARTY CONTRACTOR HIRED BY
HUTCHINSON UTILITIES COMMISSION WILL, BE INVOICED AT ACTUAL,
COST PLUS 1 5% FOR BILLING AND HANDLING.
HCP INTERCONNECT AGREEMENT 17
OCTOBER 30, 2023
EXHIBIT A
PAGE 2OF2
HUTCHINSON UTILITIES COMMISSON
2023 AVERAGE HOURLY RATES
CLASSIFICATION
REGULAR
OVERTIME (1 - 112)
OVERTIME (2)
OPERATOR
$63.00
$94.50
$1 26.00
*NOTE: ALL AVERAGE HOURLY RATES SHALL, BE INCREASED ANNUALLY AS
REFLECTED IN HUTCHINSON'S LABOR AGREEMENT.
HCP INTERCONNECT AGREEMENT 18
OCTOBER 30, 2023
HUTCHINSON UTILITIES COMMISSION��`
Board Action Form
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Agenda Item: Approval of Natural Gas Firm Transportation Capacity Agreement with Heartland Corn
Presenter: John Webster
Agenda Item Type:
Time Requested (Minutes):
New Business
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
Heartland Corn Products (HCP) wishes to reserve natural gas firm transportation
capacity on the Hutchinson pipeline in the amount of 12,300 Dth/Day for 365 days per
year commencing on December 1, 2023 through November 30, 2043.
Hutchison Utilities' receipt point for Heartland Corn Products' natural gas will be NBPL
Compressor Station 13, Trimont, MN.
Hutchinson Utilities' delivery point for Heartland Corn Products' natural gas will be the
HUC/HCP Interconnect Station, Sibley County, MN.
BOARD ACTION REQUESTED:
Approval of Natural Gas Firm Transportation Capacity Agreement with Heartland
Corn Products.
Fiscal Impact: $900,360 Annual Revenue
Included in current budget: Yes Budget Change: No
PROJECT SECTION:
Total Project Cost: Remaining Cost:
NOVEMBER 1, 2023
NATURAL, CAS FIRM
TRANSPORTATION CAPACITY
AGREEMENT
JOHN WEBSTER
HUTCHINSON UTILITIES
225 MICHIGAN ST SE
HUTCHINSON, MN 55350
NATURAL GAS FIRM TRANSPORTATION CAPACITY AGREEMENT
THIS NATURAL GAS FIRM TRANSPORTATION CAPACITY
AGREEMENT ("AGREEMENT") IS MADE AND ENTERED INTO ON THIS 1st DAY OF
NOVEMBER, 2023, TO BE EFFECTIVE AS OF THE 1 ST DAY OF DECEMBER, 2023,
BY AND BETWEEN HEARTLAND CORN PRODUCTS ("HCP") WITH OFFICES LOCATED
AT 53331 STATE HIGHWAY 19, POST OFFICE BOX A, WINTHROP, MINNESOTA,
55396 AND HUTCHINSON UTILITIES COMMISSION ("HUTCHINSON") A MINNESOTA
MUNICIPAL. UTILITY LOCATED AT 225 MICHIGAN ST. SE, HUTCHINSON,
MINNESOTA, 55350. HCP AND HUTCHINSON SHALL HEREINAFTER SOMETIMES
BE REFERRED TO SEPARATELY AS "PARTY" OR JOINTLY AS "PARTIES."
WITNESSETH:
WHEREAS, HCP DESIRES TO CONTRACT WITH HUTCHINSON FOR THE
PROVISION OF LONG-TERM FIRM TRANSPORTATION CAPACITY BY HUTCHINSON TO
HCP;
WHEREAS, HUTCHINSON HAS THE CAPABILITY TO PROVIDE HCP WITH
LONG TERM FIRM TRANSPORTATION CAPACITY;
NOW THEREFORE, IN CONSIDERATION OF THE PREMISES AND MUTUAL.
COVENANTS AND CONDITIONS CONTAINED IN THIS AGREEMENT, HUTCHINSON
AND HCP AGREE AS FOLLOWS:
1 . CHARACTER OF SERVICE.
A. FIRM NATURAL. GAS TRANSPORTATION SERVICE -
HUTCHINSON SHALL PROVIDE TO HCP FIRM NATURAL. GAS
TRANSPORTATION CAPACITY IN THE AMOUNT OF 12,300 DTH
PER DAY FOR 365 DAYS PER YEAR, COMMENCING ON THE 1 ST
DAY OF DECEMBER, 2023, AND CONTINUING FOR AN INITIAL.
PERIOD OF 20 YEARS, THROUGH THE LAST DAY OF NOVEMBER,
HEARTLAND CORN PRODUCTS TRANSPORTATION AGREEMENT 1
NOVEMBER 1,2023
2043, UNDER THE RATES, TERMS AND CONDITIONS SET FORTH
IN THIS AGREEMENT. THIS SERVICE SHALL, ALWAYS BE
AVAILABLE TO HCP UNLESS CURTAILED OR INTERRUPTED
PURSUANT TO THE TERMS OF THIS AGREEMENT. THIS SERVICE
MAY NOT BE CURTAILED OR INTERRUPTED EXCEPT PURSUANT
TO THE TERMS OF THIS AGREEMENT.
B. SOLE OBLIGATION TO PROVIDE FIRM TRANSPORTATION
CAPACITY - HUTCHINSON'S SOLE OBLIGATION UNDER THIS
AGREEMENT IS TO PROVIDE FIRM CAPACITY TO HCP OVER
WHICH HCP MAY TRANSPORT NATURAL GAS SUPPLIES
PURCHASED FROM AN INDEPENDENT 3RD PARTY SUPPLIER.
2. AVAILABILITY AND CONDITIONS.
A. GENERALLY - FIRM TRANSPORTATION SERVICE UNDER THIS
AGREEMENT SHALL BE AVAILABLE TO HCP UNDER THE TERMS
AND CONDITIONS OF THIS AGREEMENT. SUCH CAPACITY, UP
TO THE MAXIMUM DAILY QUANTITY (MDQ) OF 12,300 DTH PER
DAY, SHALL ALWAYS BE AVAILABLE TO HCP UNLESS SUCH
CAPACITY IS CURTAILED OR INTERRUPTED PURSUANT TO THE
TERMS OF THIS AGREEMENT. THIS SERVICE MAY NOT BE
CURTAILED OR INTERRUPTED EXCEPT PURSUANT TO THE TERMS
OF THIS AGREEMENT.
B. NATURAL GAS STANDARDS - GAS SUPPLIES TRANSPORTED BY
HCP UNDER THE TERMS OF THIS AGREEMENT SHALL MEET THE
STANDARDS REASONABLY SPECIFIED BY HUTCHINSON FROM
TIME TO TIME. THE GAS SUPPLY STANDARDS SHALL BE
IDENTICAL TO THE STANDARDS IMPOSED ON HUTCHINSON BY
ITS INTERSTATE NATURAL GAS PIPELINE TRANSPORTER,
NORTHERN BORDER PIPELINE COMPANY.
C. METERING - TO BE DETERMINED.
D. CONTACT PERSONS
1 . HCP SHALL SUPPLY TO HUTCHINSON THE NAME,
BUSINESS ADDRESS, A PRIMARY AND SECONDARY
CONTACT PERSON, TELEPHONE NUMBERS FOR
THE PRIMARY AND SECONDARY CONTACT PERSON,
AND A TWENTY -FOUR-HOUR EMERGENCY
TELEPHONE NUMBER.
2. HUTCHINSON SHALL SUPPLY TO HCP THE NAME,
BUSINESS ADDRESS, A PRIMARY AND SECONDARY
HEARTLAND CORN PRODUCTS TRANSPORTATION AGREEMENT 2
NOVEMBER 1,2023
CONTACT PERSON, TELEPHONE NUMBERS FOR
THE PRIMARY AND SECONDARY CONTACT PERSON,
AND A TWENTY -FOUR-HOUR EMERGENCY
TELEPHONE NUMBER.
E. COMPLIANCE WITH AGREEMENT - SERVICE UNDER THIS
AGREEMENT SHALL NOT COMMENCE UNTIL BOTH PARTIES HAVE
FULLY EXECUTED THIS AGREEMENT AND COMPLIED WITH ALL
RELEVANT REQUIREMENTS CONTAINED HEREIN.
F. RECEIPT POINT - ATTACHMENT A TO THIS AGREEMENT SETS
FORTH THE RECEIPT POINT FOR RECEIPT OF NATURAL GAS
FROM HCP TO HUTCHINSON.
G. DELIVERY POINTS - ATTACHMENT A TO THIS AGREEMENT SETS
FORTH THE DELIVERY POINTS) FOR DELIVERY OF NATURAL GAS
FROM HUTCHINSON TO HCP.
H. CONTRACT CHANGES - HUTCHINSON HAS THE RIGHT TO
MODIFY THIS AGREEMENT DUE TO CHANGES IMPOSED BY 3RD
PARTY ENTITIES.
3. TERM.
THE INITIAL TERM FOR SERVICE UNDER THIS AGREEMENT IS TWENTY
(20) YEARS. HCP MUST NOTIFY HUTCHINSON IN WRITING SIX (6)
MONTHS PRIOR TO THE EXPIRATION OF THE TERM IF HCP DESIRES TO
CONTINUE SERVICE UNDER THIS AGREEMENT. IF HCP HAS COMPLIED
WITH ALL TERMS OF THIS AGREEMENT, AND HAS NO OUTSTANDING
ARREARAGES, HCP MAY, UPON WRITTEN NOTICE PROVIDED TO
HUTCHINSON SIX (6) MONTHS PRIOR TO THE EXPIRATION OF THE
CURRENT TERM, EXTEND THIS AGREEMENT FOR A MUTUALLY AGREED -
UPON PERIOD. IF A TERM FOR THE EXTENSION CANNOT BE AGREED
UPON BY HCP AND HUTCHINSON, THE PARTIES AGREE TO A MINIMUM
TERM OF ONE (1) YEAR. IF SUCH TIMELY NOTICE IS NOT PROVIDED BY
HCP, HUTCHINSON IS NOT OBLIGATED TO RENEW SERVICE FOR HCP.
REPRESENTATIVES OF HUTCHINSON AND HCP SHALL MEET
APPROXIMATELY FOUR (4) MONTHS PRIOR TO THE EXPIRATION DATE
OF THE INITIAL TERM OF THIS AGREEMENT TO DISCUSS FUTURE
OPERATIONS.
4. RATES.
A. RATES FOR SERVICE - THE FOLLOWING CHARGES SHALL APPLY TO
THE FIRM TRANSPORTATION CAPACITY TO BE PROVIDED TO HCP BY
HUTCHINSON:
HEARTLAND CORN PRODUCTS TRANSPORTATION AGREEMENT rJ
NOVEMBER 1,2023 J
I . RESERVATION CHARGE.
RESERVATION CHARGE, PER DTH OF MDQ -
$6.1 O/DTH PER MONTH, ($0.20/DTH/DAY)
MONTH IS DEFINED AS BEING 30.5 DAYS IN
LENGTH.
2. TRANSPORTATION CHARGE.
TRANSPORTATION CHARGE, PER DTH, ALL USAGE DURING A
MONTH - $0.00
HUTCHINSON UTILITIES SHALL RESERVE THE RIGHT TO REVIEW AND
MODIFY ANY AND ALL FEES IN THIS AGREEMENT IN OCTOBER 2028,
AND EACH) YEARS THEREAFTER, TO BE EFFECTIVE IN DECEMBER OF
THAT YEAR, DUE TO CHANGES IN HUTCHINSON'S TRANSMISSION LINE
RATES.
B. THIRD PARTY CHARGES.
HCP IS RESPONSIBLE FOR ALL CHARGES IMPOSED BY A
SUPPLIER, BROKER, MARKETER, OR ANY OTHER THIRD PARTY
FOR ANY SERVICE THAT IS PROVIDED TO, OR ON BEHALF OF,
HCP BY ANY OF THESE ENTITIES. THESE CHARGES INCLUDE,
BUT ARE NOT LIMITED TO, COST OF GAS, RESERVATION
CHARGES, ADMINISTRATIVE FEES, BILLING FEES, MINIMUM TAKE
CHARGES, AND ANY AND ALL OTHER TYPES OF CHARGES FROM
ANY SUCH ENTITY.
C. PENALTIES.
HCP SHALL PAY ANY FINES, ADDITIONAL. AMOUNTS, OR PENALTIES
IMPOSED UNDER THE TERMS OF THIS AGREEMENT.
5. BILLING AND PAYMENT.
A. BILLING - RESERVATION INVOICE WILL BE RENDERED TO HCP
OR ITS AGENT BY THE FIFTEENTH DAY OF THE MONTH
PRECEDING THE MONTH IN WHICH SERVICE IS RENDERED BY
HUTCHINSON. REMAINING BILLS WILL BE RENDERED TO HCP
OR ITS AGENT BY THE FIFTEENTH DAY OF THE MONTH
FOLLOWING THE MONTH IN WHICH SERVICE IS RENDERED BY
HUTCHINSON.
HEARTLAND CORN PRODUCTS TRANSPORTATION AGREEMENT
NOVEMBER 1,2023
B. PAYMENT - PAYMENT IS DUE FROM HCP ON OR BEFORE THE
FIFTEENTH DAY FOLLOWING THE DATE THE BILL, IS ISSUED BY
HUTCHINSON. A LATE PAYMENT CHARGE OF ONE AND ONE-
HALF PERCENT PER MONTH, OR THE LEGALLY AUTHORIZED
MAXIMUM INTEREST RATE, WHICHEVER IS LOWER, SHALL BE
LEVIED ON ANY UNPAID BALANCES.
C. PIPELINE. SUPPLIER. AND THIRD -PARTY CHARGES - ANY
CHARGES WHICH HUTCHINSON REASONABLY INCURS ON
BEHALF OF HCP FROM ANY PIPELINE, SUPPLIER, OR OTHER
THIRD PARTY, SHALL BE PASSED THROUGH TO, AND PAID IN
FULL BY, HCP. HUTCHINSON SHALL PROVIDE TO HCP IN
WRITING FULL DETAILS CONCERNING ANY SUCH CHARGES.
D. GOOD FAITH DISPUTE - IF HCP, IN GOOD FAITH, DISPUTES THE
AMOUNT OF ANY INVOICE RENDERED BY HUTCHINSON, OR ANY
PART THEREOF, HCP SHALL PAY THE FULL AMOUNT OF THE
INVOICE. HUTCHINSON SHALL PROMPTLY PROVIDE IN WRITING
TO HCP SUPPORTING DOCUMENTATION ACCEPTABLE IN
INDUSTRY PRACTICE TO SUPPORT THE AMOUNT INVOICED, AND
HCP SHALL PROMPTLY PROVIDE TO HUTCHINSON IN WRITING
THE BASIS FOR ANY DISPUTE, INCLUDING SUPPORTING
DOCUMENTATION ACCEPTABLE IN INDUSTRY PRACTICE. IN THE
EVENT THE PARTIES ARE UNABLE TO RESOLVE SUCH DISPUTE,
EITHER PARTY MAY PURSUE ANY REMEDY AVAILABLE AT LAW OR
IN EQUITY TO ENFORCE ITS RIGHTS PURSUANT TO THIS
PROVISION.
E. RIGHT TO INSPECT - A PARTY SHALL HAVE THE RIGHT, AT ITS
OWN EXPENSE, UPON REASONABLE NOTICE AND AT
REASONABLE TIMES, TO EXAMINE AND AUDIT AND TO OBTAIN
COPIES OF THE RELEVANT PORTION OF THE BOOKS, RECORDS,
AND TELEPHONE RECORDINGS OF THE OTHER PARTY ONLY TO
THE EXTENT REASONABLY NECESSARY TO VERIFY THE
ACCURACY OF ANY STATEMENT, CHARGE, PAYMENT, OR
COMPUTATION MADE UNDER THIS AGREEMENT. THIS RIGHT TO
EXAMINE, AUDIT, AND TO OBTAIN COPIES SHALL NOT BE
AVAILABLE WITH RESPECT TO PROPRIETARY INFORMATION NOT
DIRECTLY RELEVANT TO TRANSACTIONS UNDER THIS
AGREEMENT.
F. FINALITY - ALL INVOICES AND BILLINGS SHALL BE
CONCLUSIVELY PRESUMED FINAL AND ACCURATE AND ALL
ASSOCIATED CLAIMS FOR UNDER- OR OVERPAYMENTS SHALL BE
DEEMED WAIVED UNLESS SUCH INVOICES OR BILLINGS ARE
OBJECTED TO, IN WRITING, WITH ADEQUATE EXPLANATION
HEARTLAND CORN PRODUCTS TRANSPORTATION AGREEMENT
NOVEMBER 1,2023
AND/OR DOCUMENTATION, WITHIN TWO YEARS AFTER THE
INITIAL, BILLING DATE FOR THE INVOICE OR BILL, IN DISPUTE.
6. CONDITIONS OF SERVICE.
A. FIRM CAPACITY REQUIREMENT - HUTCHINSON HEREBY
CERTIFIES THAT IT HAS SUFFICIENT FIRM TRANSPORTATION
CAPACITY TO PROVIDE THE AMOUNT OF FIRM TRANSPORTATION
SERVICE TO HCP PURSUANT TO THE TERMS OF THIS
AGREEMENT FOR THE TERM OF THIS AGREEMENT.
B. EFFECT OF FAILURE TO PROVIDE GAS SUPPLIES
HCP AGREES TO IMMEDIATELY CURTAIL ITS
DELIVERIES AT HUTCHINSON's DELIVERY POINT
UNDER THIS AGREEMENT WHEN HCP'S GAS
SUPPLIES ARE NOT RECEIVED INTO HUTCHINSON's
RECEIPT POINT, UNLESS THE PARTIES AGREE
OTHERWISE IN WRITING.
2. HCP SHALL INDEMNIFY, DEFEND AND HOLD
HUTCHINSON HARMLESS FOR ANY DAMAGES
CAUSED BY HCP'S FAILURE TO DELIVER, OR TO
HAVE DELIVERED ON ITS BEHALF, SUPPLIES AT
HUTCHINSON's RECEIPT POINT FOR
TRANSPORTATION OVER HUTCHINSON's SYSTEM.
7. OPERATIONAL REQUIREMENTS.
A. BTU ADJUSTMENT - THE QUANTITY OF GAS RECEIVED BY
HUTCHINSON AT HUTCHINSON's RECEIPT POINT, FROM HCP,
AND THE QUANTITY OF GAS DELIVERED TO HCP BY
HUTCHINSON, AT HUTCHINSON's DELIVERY POINT, SHALL BE
THERMALLY BALANCED. BILLED VOLUMES MAY BE ADJUSTED
WHEN THE BTU CONTENT OF HCP'S GAS VARIES FROM 1,000
BTUs PER CUBIC FOOT.
B. GAS QUALITY - GAS RECEIVED BY HUTCHINSON, AT
HUTCHINSON's RECEIPT POINT, ON BEHALF OF HCP, SHALL
BE COMMERCIALLY CLEAN AND MERCHANTABLE. SUCH GAS
SHALL BE COMPARABLE IN QUALITY TO AND INTERCHANGEABLE
WITH GAS PURCHASED BY HUTCHINSON. HUTCHINSON
RESERVES THE RIGHT TO REFUSE TO ACCEPT GAS THAT DOES
NOT MEET HUTCHINSON's QUALITY SPECIFICATIONS AS
SPECIFIED IN THIS AGREEMENT.
HEARTLAND CORN PRODUCTS TRANSPORTATION AGREEMENT NOVEMBER 1,2023 6
C. METERING — TO BE DETERMINED.
D. RESPONSIBILITY FOR TRANSPORTING GAS SUPPLIES -
HUTCHINSON SHALL HAVE THE SOLE RESPONSIBILITY FOR
TRANSPORTING NATURAL GAS SUPPLIES TO THE DELIVERY
POINT(S). HCP SHALL HAVE THE SOLE RESPONSIBILITY FOR
TRANSPORTING NATURAL GAS FROM THE DELIVERY POINT(S).
8. AGENTS.
A. DESIGNATION OF AGENTS - HCP MAY DESIGNATE AN AGENT
FOR NOMINATING AND SCHEDULING VOLUMES FOR
TRANSPORTATION ON HUTCHINSON's SYSTEM. HCP SHALL
NOTIFY HUTCHINSON IN WRITING AT LEAST FIFTEEN (1 5)
BUSINESS DAYS PRIOR TO THE FIRST DAY OF THE MONTH IN
WHICH SUCH SERVICES WILL BE UTILIZED THAT A THIRD PARTY
HAS BEEN DESIGNATED AS HCP'S AGENT AND SHALL ACT AS
AGENT FOR HCP FOR PURPOSES OF NOMINATIONS, BILLING,
AND/OR OTHER FUNCTIONS AS SPECIFIED BY HCP. IF HCP
UTILIZES AN AGENT FOR ANY OR ALL OF THESE PURPOSES,
HCP AGREES THAT INFORMATION TO BE SUPPLIED BY
HUTCHINSON TO HCP MAY BE SUPPLIED ONLY TO THE AGENT
AND THAT INFORMATION SUPPLIED BY THE AGENT TO
HUTCHINSON SHALL BE RELIED UPON BY HUTCHINSON AS IF
PROVIDED BY HCP. HUTCHINSON SHALL BE HELD HARMLESS
FOR ANY ERRORS BETWEEN HCP AND SAID AGENT. SUCH
DESIGNATION SHALL REMAIN IN EFFECT UNTIL HCP NOTIFIES
HUTCHINSON IN WRITING THAT THE PREVIOUSLY DESIGNATED
AGENT IS NO LONGER ITS AGENT.
B. INFORMATION REQUIRED - HCP SHALL PROVIDE THE
FOLLOWING INFORMATION TO HUTCHINSON CONCERNING
EACH AGENT USED BY HCP FOR ANY PURPOSE:
1 . NAME AND ADDRESS OF THE AGENT OR AGENTS;
2. PRIMARY AND SECONDARY CONTACT PERSONS
FOR THE AGENT OR AGENTS;
3. TELEPHONE AND E-MAIL ADDRESSES FOR PRIMARY
AND SECONDARY CONTACT PERSONS FOR THE
AGENT OR AGENTS; AND
4. TWENTY -FOUR-HOUR TELEPHONE NUMBER FOR
WEEKENDS AND HOLIDAYS FOR THE AGENT OR
AGENTS.
HEARTLAND CORN PRODUCTS TRANSPORTATION AGREEMENT 7NOVEMBER 1,2023
C. HCP TO REMAIN LIABLE - HCP MAY ELECT TO HAVE ITS BILL,
FOR SERVICES UNDER THIS AGREEMENT SENT DIRECTLY TO ITS
AGENT. HOWEVER, IF HCP SELECTS THIS OPTION, HCP
REMAINS FULLY LIABLE FOR ANY BILL RENDERED BY
HUTCHINSON. ALL DEADLINES SET FORTH IN THIS AGREEMENT
SHALL CONTINUE TO APPLY, REGARDLESS OF WHETHER
HUTCHINSON's BILL IS SENT DIRECTLY TO HCP OR TO HCP'S
DESIGNATED AGENT.
9. NOMINATIONS AND SCHEDULING.
A. FIRST OF THE MONTH NOMINATIONS - BY 7:00 A.M. CENTRAL
CLOCK TIME ("C.C.T."), AT LEAST FIVE (5) BUSINESS DAYS
PRIOR TO THE FIRST OF EACH MONTH HCP OR ITS DESIGNATED
AGENT SHALL PROVIDE HUTCHINSON A WRITTEN ESTIMATE OF
HCP'S DAILY FIRM TRANSPORTATION CAPACITY REQUIREMENTS
AND TOTAL MONTHLY REQUIREMENT FOR TRANSPORTATION
SERVICE UNDER THIS AGREEMENT. NOMINATIONS SHALL BE
LIMITED TO THE METER SPECIFIED IN THIS AGREEMENT.
ABSENT AGREEMENT IN WRITING, NOMINATIONS BY HCP OR ITS
DESIGNATED AGENT MAY NOT EXCEED HCP'S MAXIMUM DAILY
QUANTITY ("MDQ").
B. DAILY NOMINATIONS — HCP OR ITS DESIGNATED AGENT SHALL
NOTIFY HUTCHINSON OF ANY REQUESTED CHANGE TO ITS
NOMINATION AT HUTCHINSON's RECEIPT POINT, IN WRITING,
BY 8:00 A.M. C.C.T AT LEAST ONE (1) BUSINESS DAY PRIOR TO
THE DATE OF THE REQUESTED CHANGE. HUTCHINSON SHALL
GRANT SUCH REQUESTS IN ITS REASONABLE DISCRETION.
ABSENT AGREEMENT IN WRITING, NOMINATIONS BY HCP OR ITS
DESIGNATED AGENT MAY NOT EXCEED HCP'S MDQ.
C. CHANGES TO NOMINATIONS RESULTING FROM CURTAILMENT
OR INTERRUPTION - IF A CURTAILMENT OR INTERRUPTION IS
CALLED UNDER THE TERMS AND CONDITIONS OF THIS
AGREEMENT, HUTCHINSON SHALL NOTIFY HCP OR ITS
DESIGNATED AGENT AS SOON AS REASONABLY POSSIBLE AND
AS NECESSARY TO MAINTAIN THE INTEGRITY OF THE SYSTEM, OF
THE RECEIPT AND DELIVERY CONDITIONS APPLICABLE TO
SERVICE UNDER THIS AGREEMENT. SUCH CONDITIONS SHALL
BECOME EFFECTIVE BEGINNING THE NEXT GAS DAY
COMMENCING AT 9:00 A.M. C.C.T., OR AT SUCH EARLIER TIME
AS IS NECESSARY. UNDER THESE CONDITIONS, HUTCHINSON
SHALL HAVE THE RIGHT TO REQUIRE REDUCTIONS IN
PREVIOUSLY NOMINATED AMOUNTS UNDER THIS PROVISION,
HEARTLAND CORN PRODUCTS TRANSPORTATION AGREEMENT p
NOVEMBER 1,2023 V
CONSISTENT WITH OTHER PROVISIONS OF THIS AGREEMENT.
D. WAIVER - HUTCHINSON MAY, IN ITS SOLE DISCRETION AND ON
A NON-DISCRIMINATORY BASIS, WAIVE ANY OF THE NOMINATION
REQUIREMENTS SET FORTH IN THIS SECTION IF HUTCHINSON
DETERMINES THAT IT CAN ACCOMMODATE SUCH NOMINATIONS.
E. LATE NOMINATION — IF HUTCHINSON HAS NOT WAIVED THE
NOMINATION REQUIREMENTS, HUTCHINSON MAY STIL.L., IN ITS
SOLE DISCRETION AND ON A NON-DISCRIMINATORY BASIS,
CONFIRM A LATE NOMINATION.
10. BALANCING.
A. DAILY BALANCING REQUIRED - ON A DAILY BASIS, HCP OR ITS
DESIGNATED AGENT SHALL BALANCE (1) THE RECEIPT OF
HCP'S GAS VOLUMES AT HUTCHINSON's RECEIPT POINT WITH
(2) THE DELIVERY OF THERMALLY EQUIVALENT GAS VOLUMES
BY HUTCHINSON TO HCP AT THE HUTCHINSON DELIVERY
POINT. DIFFERENCES BETWEEN DAILY RECEIPTS FROM AND
DAILY DELIVERIES TO HCP SHALL BE ACCUMULATED IN AN
IMBALANCE ACCOUNT. HCP OR ITS DESIGNATED AGENT SHALL
MONITOR RECEIPTS AND DELIVERIES ON ITS BEHALF AND SHALL
ADJUST ITS CONSUMPTION OF GAS SO AS TO ENSURE THAT ITS
RECEIPTS AND DELIVERIES ARE IN BALANCE TO THE EXTENT
PRACTICABLE.
B. POSITIVE AND NEGATIVE DAILY OR MONTHLY IMBALANCES - A
POSITIVE DAILY OR MONTHLY IMBALANCE OCCURS WHEN
RECEIPTS OF GAS, AT THE HUTCHINSON RECEIPT POINT, ON
BEHALF OF HCP EXCEED DELIVERIES OF GAS TO HCP AT THE
HUTCHINSON DELIVERY POINT. A NEGATIVE DAILY OR
MONTHLY IMBALANCE OCCURS WHEN DELIVERIES OF GAS TO
HCP, AT THE HUTCHINSON DELIVERY POINT, EXCEED
RECEIPTS OF GAS ON BEHALF OF HCP AT THE HUTCHINSON
RECEIPT POINT.
C. DAILY BALANCING LIMITATION - HCP SHALL BE PERMITTED TO
INCUR A POSITIVE DAILY IMBALANCE OR A NEGATIVE DAILY
IMBALANCE OF UP TO %% OF HCP'S DAILY -NOMINATED
QUANTITY, AT HUTCHINSON's DELIVERY POINT, EXCEPT
DURING CURTAILMENT OR INTERRUPTION UNDER THE TERMS OF
THIS AGREEMENT. DURING CURTAILMENT OR INTERRUPTION,
HCP SHALL BE REQUIRED TO ABIDE BY THE TERMS OF ANY
CURTAILMENT OR INTERRUPTION INSTRUCTIONS ISSUED BY
HUTCHINSON.
HEARTLAND CORN PRODUCTS TRANSPORTATION AGREEMENT n
NOVEMBER 1,2023
D. MONTHLY BALANCING LIMITATION - HCP MAY INCUR A
CUMULATIVE MONTHLY POSITIVE OR NEGATIVE IMBALANCE OF
UP TO AND INCLUDING 15% OF HCP'S MDQ. NO IMBALANCE
CHARGES SHALL APPLY TO CUMULATIVE MONTHLY IMBALANCES
UP TO AND INCLUDING THIS 1 S% OF HCP'S MDQ.
1 1. SCHEDULING AND IMBALANCE CHARGES.
A. DAILY SCHEDULING CHARGES.
DAILY DELIVERIES IN EXCESS OF NOMINATED
QUANTITIES - IF DAILY DELIVERY TO HCP, AT
HUTCHINSON's DELIVERY POINT, EXCEEDS HCP'S
NOMINATION AT HUTCHINSON's RECEIPT POINT, FOR
THAT DAY, HCP SHALL PAY THE FOLLOWING CHARGES:
FOR DELIVERIES, AT HUTCHINSON's DELIVERY POINT, IN
EXCESS OF HCP'S DAILY NOMINATION, AT
HUTCHINSON's RECEIPT POINT, PLUS THE DAILY
TOLERANCE OF %% OF HCP'S DAILY -NOMINATED
QUANTITY, HCP SHALL PAY AN ADDITIONAL CHARGE OF
$0.20/DTH.
FOR DELIVERIES, AT HUTCHINSON's DELIVERY POINT, IN
EXCESS OF HCP'S DAILY MDQ, HCP SHALL PAY AN
ADDITIONAL TRANSPORTATION CHARGE OF $ 1 .00/DTH
FOR EACH OCCURRENCE IN ADDITION TO ANY OTHER
CHARGES THAT MAY APPLY.
HUTCHINSON MAY ELECT TO WAIVE THESE CHARGES ON
A PARTICULAR DAY OR DAYS. WAIVER OF THESE
CHARGES ON ANY DAY OR DAYS SHALL NOT BE
CONSTRUED TO BE A WAIVER FOR ANY SUBSEQUENT
DAY.
2. DAILY DELIVERIES LESS THAN NOMINATED QUANTITIES -
IF DAILY DELIVERY TO HCP, AT HUTCHINSON's DELIVERY
POINT, IS LESS THAN HCP'S NOMINATION, AT
HUTCHINSON's RECEIPT POINT, FOR THAT DAY, HCP
SHALL PAY THE FOLLOWING CHARGES:
FOR DELIVERIES AT THE HUTCHINSON DELIVERY POINT
THAT ARE LESS THAN HCP'S DAILY NOMINATION, AT
HEARTLAND CORN PRODUCTS TRANSPORTATION AGREEMENT 1 0
NOVEMBER 1,2023
HUTCHINSON's RECEIPT POINT, MINUS THE DAILY
TOLERANCE OF %% OF HCP'S DAILY -NOMINATED
QUANTITY, AT HUTCHINSON's RECEIPT POINT, HCP
SHALL PAY AN ADDITIONAL. CHARGE OF $0.20/DTH.
HUTCHINSON MAY ELECT TO WAIVE THESE CHARGES ON
A PARTICULAR DAY OR DAYS. WAIVER OF THESE
CHARGES ON ANY DAY OR DAYS SHALL NOT BE
CONSTRUED TO BE A WAIVER FOR ANY SUBSEQUENT
DAY.
3. OTHER CHARGES - IF HUTCHINSON INCURS ANY
ADDITIONAL., VERIFIABLE CHARGES FROM ITS INTERSTATE
PIPELINE SUPPLIER DIRECTLY AS A RESULT OF HCP'S
IMBALANCE, THOSE COSTS SHALL BE PAID IN FULL BY
HCP. HUTCHINSON SHALL PROVIDE TO HCP FULL
DETAILS OF THESE CHARGES IN WRITING ON OR BEFORE
THE BILLING DATE.
4. EFFECT ON CHARGES - THESE CHARGES ARE IN
ADDITION TO, AND NOT IN PLACE OF, ANY CHARGES
IMPOSED ON HCP BY AN ENTITY OTHER THAN
HUTCHINSON.
J. LIMITATIONS - NOTWITHSTANDING ANY OTHER
PROVISION OF THIS AGREEMENT, HCP SHALL NOT BE
LIABLE FOR ANY DAILY SCHEDULING CHARGES INCURRED
AS A RESULT OF HUTCHINSON'S FAILURE TO NOMINATE,
SCHEDULE, AND/OR CONFIRM THE CORRECT AMOUNT
OF DAILY FIRM TRANSPORTATION CAPACITY FOR HCP.
IN SUCH INSTANCE, HUTCHINSON SHALL PAY SUCH DAILY
SCHEDULING CHARGES OR REIMBURSE HCP FOR SUCH
DAILY SCHEDULING CHARGES PAID BY HCP.
B. SETTLEMENT OF MONTHLY IMBALANCES - HCP SHALL BE
REQUIRED TO SETTLE OUTSTANDING IMBALANCES ON A
MONTHLY BASIS. ON A MONTHLY BASIS, BY THE 20TH OF THE
FOLLOWING MONTH OR THE NEXT BUSINESS DAY FOLLOWING
THE 20TH OF THE MONTH IF THE 20TH OF THE MONTH FALLS
ON A SATURDAY, SUNDAY, OR LEGAL HOLIDAY, HUTCHINSON
SHALL PROVIDE AN IMBALANCE STATEMENT TO HCP
DETAILING THE DAILY QUANTITIES RECEIVED ON BEHALF OF
HCP, AT THE HUTCHINSON RECEIPT POINT, AND THE DAILY
VOLUMES DELIVERED TO HCP AT THE HUTCHINSON DELIVERY
POINT. ANY POSITIVE OR NEGATIVE IMBALANCE REMAINING AT
THE END OF A GIVEN MONTH SHALL BE RESOLVED AS
HEARTLAND CORN PRODUCTS TRANSPORTATION AGREEMENT
NOVEMBER 1,2023
FOLLOWS:
1 . POSITIVE IMBALANCE - IN ADDITION TO ANY OTHER
APPLICABLE CHARGES, INCLUDING, BUT NOT LIMITED TO,
THE CHARGES SET FORTH ABOVE, ANY POSITIVE
MONTHLY IMBALANCE GREATER THAN 1 5% OF HCP'S
MDQ SHALL BE ASSESSED A POSITIVE MONTHLY
IMBALANCE CHARGE OF $0.25/DTH. HUTCHINSON
SHALL ALLOW HCP TO ROLL THE OUTSTANDING
IMBALANCE QUANTITIES INTO FOLLOWING MONTH.
Z. NEGATIVE IMBALANCE - IN ADDITION TO ANY OTHER
APPLICABLE CHARGES, INCLUDING, BUT NOT LIMITED TO,
THE CHARGES SET FORTH ABOVE, ANY NEGATIVE
MONTHLY IMBALANCE GREATER THAN 1 5% OF HCP'S
MDQ SHALL BE ASSESSED A NEGATIVE MONTHLY
IMBALANCE CHARGE OF $0.25/DTH. HUTCHINSON
SHALL ALLOW HCP TO ROLL THE OUTSTANDING
IMBALANCE QUANTITIES INTO FOLLOWING MONTH.
3. OTHER CHARGES - IF HUTCHINSON INCURS ANY
ADDITIONAL., VERIFIABLE CHARGES FROM ITS INTERSTATE
PIPELINE SUPPLIER DIRECTLY AS A RESULT OF HCP'S
IMBALANCE, THOSE COSTS SHALL BE PAID IN FULL BY
HCP. HUTCHINSON SHALL PROVIDE TO HCP FULL
DETAILS OF THESE CHARGES IN WRITING ON OR BEFORE
THE BILLING DATE.
4. EFFECT ON CHARGES - THESE CHARGES ARE IN
ADDITION TO, AND NOT IN PLACE OF, ANY CHARGES
IMPOSED ON HCP BY AN ENTITY OTHER THAN
HUTCHINSON.
J. LIMITATIONS - NOTWITHSTANDING ANY OTHER
PROVISION OF THIS AGREEMENT, HCP SHALL NOT BE
LIABLE FOR ANY IMBALANCE CHARGES INCURRED AS A
RESULT OF HUTCHINSON'S FAILURE TO NOMINATE,
SCHEDULE, AND/OR CONFIRM THE CORRECT AMOUNT
OF FIRM TRANSPORTATION CAPACITY. IN SUCH
INSTANCE, HUTCHINSON SHALL PAY FOR SUCH
IMBALANCE CHARGES OR REIMBURSE HCP FOR SUCH
IMBALANCE CHARGES PAID BY HCP.
HEARTLAND CORN PRODUCTS TRANSPORTATION AGREEMENT 1
NOVEMBER 1,2023
1 2. PENALTY FOR UNAUTHORIZED RECEIPTS AT THE HCP RECEIPT POINT
DURING CURTAILMENT OR INTERRUPTION.
PROVIDED THAT HUTCHINSON HAS COMPLIED WITH THE TERMS OF
THIS AGREEMENT WITH RESPECT TO SUCH CURTAILMENT OR
INTERRUPTION, IF HCP FAILS TO CURTAIL OR INTERRUPT ITS
RECEIPTS AT THE HCP RECEIPT POINT WHEN DIRECTED TO DO SO BY
HUTCHINSON, HCP SHALL BE BILLED FOR ALL VOLUMES TAKEN IN
EXCESS OF THE APPLICABLE LIMITATION AT A RATE EQUAL TO THE
DAILY CHICAGO INDEX PLUS $ 1 0.00 PER DTH. IN ADDITION,
HUTCHINSON SHALL HAVE THE RIGHT TO DISCONNECT HCP'S
SUPPLY OF GAS, AT HUTCHINSON's DELIVERY POINT, IF HCP FAILS
TO CURTAIL OR INTERRUPT ITS USE OF GAS WHEN AND AS DIRECTED
BY HUTCHINSON. HUTCHINSON MUST RESTORE SUCH SERVICE AS
SOON AS PRACTICABLE FOLLOWING ANY SUCH DISCONNECTION.
13. TITLE, LIABILITY, AND INSURANCE.
A. TITLE - GAS RECEIVED BY HUTCHINSON ON BEHALF OF HCP
FOR DELIVERY TO HCP SHALL REMAIN THE PROPERTY OF HCP.
B. LIABILITY - HUTCHINSON SHALL NOT BE LIABLE TO HCP FOR
ANY LOSS OF GAS FOR ANY CAUSE OTHER THAN GROSS
NEGLIGENCE OR MISCONDUCT BY HUTCHINSON OR ITS
EMPLOYEES. HCP'S GAS MAY BE COMMINGLED WITH OTHER
GAS SUPPLIES IN HUTCHINSON's SYSTEM.
C. INSURANCE - HCP SHALL BE RESPONSIBLE FOR MAINTAINING
SUFFICIENT INSURANCE AS NECESSARY TO PROTECT ITS
PROPERTY AND OTHER INTERESTS IN THE GAS PRIOR TO,
DURING, AND AFTER ITS RECEIPT BY HUTCHINSON.
HUTCHINSON SHALL BE RESPONSIBLE FOR MAINTAINING
SUFFICIENT INSURANCE AS NECESSARY TO PROTECT ITS
PROPERTY AND OTHER INTERESTS IN PROVIDING
TRANSPORTATION SERVICE UNDER THIS AGREEMENT TO HCP.
14. CURTAILMENT AND INTERRUPTION.
SERVICE UNDER THIS AGREEMENT MAY BE CURTAILED OR
INTERRUPTED AS NECESSARY DUE TO PHYSICAL, OPERATIONAL, OR
OTHER SIMILAR CONSTRAINTS ON HUTCHINSON's SYSTEM. IF
HUTCHINSON IS REQUIRED TO CURTAIL OR INTERRUPT SERVICE DUE
TO CAPACITY CONSTRAINTS, FORCE MAJEURE EVENTS, SYSTEM
INTEGRITY, OR OTHER CONDITIONS, ANY INTERRUPTIBLE SERVICES
PROVIDED TO OTHER ENTITIES BY HUTCHINSON SHALL BE CURTAILED
COMPLETELY BEFORE FIRM SERVICES ARE CURTAILED, AND FIRM
HEARTLAND CORN PRODUCTS TRANSPORTATION AGREEMENT 13
NOVEMBER 1,2023
TRANSPORTATION SERVICES UNDER THIS AGREEMENT SHALL BE
CURTAILED ON A PRO RATA BASIS WITH HUTCHINSON'S OTHER FIRM
SALES AND/OR TRANSPORTATION SERVICES.
15. FORCE MAJEURE.
A. DEFINITION - EITHER PARTY SHALL BE EXCUSED FROM
PERFORMANCE UNDER THIS AGREEMENT BY FORCE MAJEURE
ACTS AND EVENTS. "FORCE MAJEURE" SHALL MEAN ACTS
AND EVENTS NOT WITHIN THE CONTROL OF THE PARTY
CLAIMING FORCE MAJEURE, AND SHALL INCLUDE, BUT NOT BE
LIMITED TO, ACTS OF GOD, STRIKES, LOCKOUTS, MATERIAL,
EQUIPMENT, OR LABOR SHORTAGES, WARS, RIOTS,
INSURRECTIONS, EPIDEMICS, PANDEMICS, LANDSLIDES,
EARTHQUAKES, FLOODS, FIRES, STORMS, GOVERNMENT OR
COURT ORDERS, CIVIL DISTURBANCES, EXPLOSIONS,
BREAKAGE OR ACCIDENT TO MACHINERY OR PIPELINES,
FREEZING OF WELLS OR PIPELINES, OR ANY OTHER CAUSE OF
WHATEVER KIND, WHETHER SPECIFICALLY ENUMERATED
HEREIN OR NOT, THAT IS NOT WITHIN THE CONTROL OF THE
PARTY CLAIMING FORCE MAJEURE.
B. EFFECT
1 . IF HUTCHINSON IS UNABLE TO PROVIDE SERVICE
UNDER THIS AGREEMENT DUE TO A FORCE
MAJEURE ACT OR EVENT, HUTCHINSON'S
OBLIGATION TO PROVIDE SERVICE UNDER THIS
AGREEMENT SHALL BE SUSPENDED FOR THE
DURATION OF THE ACT OR EVENT. HUTCHINSON
SHALL NOTIFY HCP OF THE FORCE MAJEURE
EVENT AS SOON AS REASONABLY POSSIBLE BY
ANY MEANS PRACTICABLE, INCLUDING, BUT NOT
LIMITED TO, TELEPHONE OR FACSIMILE, AND
SHALL CONFIRM THE DETAILS OF THE FORCE
MAJEURE ACT OR EVENT IN WRITING WITHIN A
REASONABLE AMOUNT OF TIME THEREAFTER.
HUTCHINSON SHALL WORK TO REMEDY THE
FORCE MAJEURE ACT OR EVENT AS SOON AS
REASONABLY POSSIBLE AND SHALL KEEP HCP
APPRISED OF THE TIME, DATE, AND
CIRCUMSTANCES WHEN SERVICE UNDER THIS
AGREEMENT SHALL BE RESTORED. HCP IS NOT
REQUIRED TO PAY ANY CHARGES UNDER THIS
AGREEMENT DURING THE TERM OF THE FORCE
MAJEURE ACT OR EVENT.
HEARTLAND CORN PRODUCTS TRANSPORTATION AGREEMENT 1
NOVEMBER 1,2023
2. IF HCP IS UNABLE TO TAKE SERVICE UNDER THIS
AGREEMENT DUE TO A FORCE MAJEURE ACT OR
EVENT, HUTCHINSON'S OBLIGATION TO PROVIDE
SERVICE UNDER THIS AGREEMENT SHALL BE
SUSPENDED FOR THE DURATION OF THE ACT OR
EVENT. HCP SHALL NOTIFY HUTCHINSON OF THE
FORCE MAJEURE EVENT AS SOON AS
REASONABLY POSSIBLE BY ANY MEANS
PRACTICABLE, INCLUDING, BUT NOT LIMITED TO,
TELEPHONE OR FACSIMILE, AND SHALL CONFIRM
THE DETAILS OF THE FORCE MAJEURE ACT OR
EVENT IN WRITING WITHIN A REASONABLE AMOUNT
OF TIME THEREAFTER. HCP SHALL WORK TO
REMEDY THE FORCE MAJEURE ACT OR EVENT AS
SOON AS REASONABLY POSSIBLE AND SHALL KEEP
HUTCHINSON APPRISED OF THE TIME, DATE, AND
CIRCUMSTANCES WHEN HCP WILL RESUME
SERVICE UNDER THIS AGREEMENT. HUTCHINSON
IS NOT REQUIRED TO PROVIDE SERVICE UNDER
THIS AGREEMENT DURING THE TERM OF THE
FORCE MAJEURE ACT OR EVENT.
C. LIMITATIONS ON FORCE MAJEURE - NEITHER PARTY SHALL BE
ENTITLED TO THE BENEFIT OF THE PROVISIONS OF FORCE
MAJEURE TO THE EXTENT PERFORMANCE IS AFFECTED BY ANY
OR ALL OF THE FOLLOWING CIRCUMSTANCES: (I) THE
CURTAILMENT OF INTERRUPTIBLE OR SECONDARY FIRM
TRANSPORTATION UNLESS PRIMARY, IN -PATH, FIRM
TRANSPORTATION IS ALSO CURTAILED; (II) THE PARTY CLAIMING
EXCUSE FAILED TO REMEDY THE CONDITION AND TO RESUME
THE PERFORMANCE OF SUCH COVENANTS OR OBLIGATIONS
WITH REASONABLE DISPATCH; OR (III) ECONOMIC HARDSHIP OF
EITHER PARTY. NOTWITHSTANDING ANY OTHER PROVISION OF
THIS AGREEMENT, THE PARTY CLAIMING FORCE MAJEURE
SHALL NOT BE EXCUSED FROM ITS RESPONSIBILITY FOR
IMBALANCE CHARGES.
16. NOTICES.
A. ADDRESSES - ALL INVOICES, PAYMENTS AND OTHER
COMMUNICATIONS MADE PURSUANT TO THIS AGREEMENT
SHALL BE MADE TO THE ADDRESSES SPECIFIED IN WRITING BY
THE RESPECTIVE PARTIES FROM TIME TO TIME.
B. ACCEPTABLE FORMS - ALL NOTICES REQUIRED HEREUNDER
HEARTLAND CORN PRODUCTS TRANSPORTATION AGREEMENT
NOVEMBER 1,2023 15
MAY BE SENT BY FACSIMILE OR MUTUALLY ACCEPTABLE
ELECTRONIC MEANS, A NATIONALLY RECOGNIZED OVERNIGHT
COURIER SERVICE, FIRST CLASS MAIL, OR HAND DELIVERED.
C. DELIVERY DATE - IN THE ABSENCE OF PROOF OF THE ACTUAL
RECEIPT DATE FOR SUCH NOTICES, THE FOLLOWING
PRESUMPTIONS WILL APPLY. NOTICES SENT BY FACSIMILE
SHALL BE DEEMED TO HAVE BEEN RECEIVED UPON THE
SENDING PARTY'S RECEIPT OF ITS FACSIMILE MACHINE'S
CONFIRMATION OF SUCCESSFUL TRANSMISSION. IF THE DAY
ON WHICH SUCH FACSIMILE IS RECEIVED IS NOT A BUSINESS
DAY OR IS AFTER FIVE P.M. C.C.T., ON A BUSINESS DAY, THEN
SUCH FACSIMILE SHALL BE DEEMED TO HAVE BEEN RECEIVED
ON THE NEXT FOLLOWING BUSINESS DAY. NOTICE BY
OVERNIGHT MAIL OR COURIER SHALL BE DEEMED TO HAVE
BEEN RECEIVED ON THE NEXT BUSINESS DAY AFTER IT WAS
SENT OR SUCH EARLIER TIME AS IS CONFIRMED BY THE
RECEIVING PARTY. NOTICE VIA FIRST CLASS MAIL SHALL BE
CONSIDERED DELIVERED FIVE BUSINESS DAYS AFTER MAILING.
17. LAWS, REGULATIONS, AND ORDERS.
A. SERVICE UNDER THIS AGREEMENT IS SUBJECT TO ALL
PRESENT AND FUTURE VALID LAWS, ORDERS, RULES,
REGULATIONS, ETC, ISSUED BY ANY FEDERAL, STATE, OR
LOCAL AUTHORITY HAVING JURISDICTION OVER THE MATTERS
SET FORTH HEREIN.
B. IT IS UNDERSTOOD BY HCP THAT IT IS ECONOMICALLY
FEASIBLE TO ENTER INTO THIS AGREEMENT TO PROVIDE FIRM
TRANSPORTATION TO HCP ONLY DUE TO THE FACT THAT
HUTCHINSON IS AN UNREGULATED MUNICIPAL UTILITY. IF AT
ANY TIME ANY OF THE ACTIVITIES COVERED UNDER THIS
AGREEMENT BECOME SUBJECT TO REGULATION BY THE
PUBLIC UTILITIES COMMISSION OF THE STATE OF MINNESOTA
OR ANY OTHER STATE OR FEDERAL AGENCY WHICH WOULD
NOT CURRENTLY CONTROL THE ACTIVITIES OF HUTCHINSON
UNDER THIS AGREEMENT, HUTCHINSON SHALL HAVE THE
OPTION, AT ITS SOLE DISCRETION TO PASS ALL COSTS
INCURRED, DUE TO HUTCHINSON'S REGULATION, TO HCP
FOR THE LENGTH OF THIS AGREEMENT.
18. MISCELLANEOUS PROVISIONS.
A. DECLARATION OF INVALIDITY - IF ANY PROVISION OF THIS
HEARTLAND CORN PRODUCTS TRANSPORTATION AGREEMENT NOVEMBER 1,2023 6
AGREEMENT IS DETERMINED TO BE INVALID, VOID, OR
UNENFORCEABLE BY ANY COURT OR OTHER ENTITY HAVING
JURISDICTION, SUCH DETERMINATION SHALL NOT INVALIDATE,
VOID, OR MAKE UNENFORCEABLE ANY OTHER PROVISION,
AGREEMENT OR COVENANT OF THIS AGREEMENT; AND THE
PARTIES AGREE TO NEGOTIATE IN GOOD FAITH A REPLACEMENT
TO SUCH INVALID, VOID OR UNENFORCEABLE PROVISION
AND/OR ANY OTHER AMENDMENTS AS MAY BE NECESSARY TO
ENSURE THAT THE AGREEMENT AS A WHOLE REFLECTS THE
ORIGINAL INTENTIONS OF THE PARTIES.
B. NO CONTINUING WAIVER - NO WAIVER OF ANY BREACH OF
THIS AGREEMENT SHALL BE HELD TO BE A WAIVER OF ANY
OTHER OR SUBSEQUENT BREACH.
C. LIMITATION ON AGREEMENT - THE PARTIES EXPRESSLY
ACKNOWLEDGE AND AGREE THAT IT IS NEITHER THE PURPOSE
OF THIS AGREEMENT NOR THEIR INTENT TO CREATE A
PARTNERSHIP, JOINT VENTURE CONTRACT OR COMPANY,
ASSOCIATION OR TRUST, FIDUCIARY RELATIONSHIP OR
PARTNERSHIP BETWEEN THEM. EXCEPT AS EXPRESSLY
PROVIDED HEREIN, NEITHER PARTY SHALL HAVE ANY
AUTHORITY TO ACT FOR OR ASSUME ANY OBLIGATIONS, OR
RESPONSIBILITIES ON BEHALF OF, THE OTHER PARTY.
D. COMPLETE AGREEMENT - THIS AGREEMENT SETS FORTH ALL
UNDERSTANDINGS BETWEEN THE PARTIES AS OF THE
EFFECTIVE DATE HEREIN. ANY PRIOR CONTRACTS,
UNDERSTANDINGS AND REPRESENTATIONS, WHETHER ORAL OR
WRITTEN, RELATING TO THE MATTERS ADDRESSED IN THIS
AGREEMENT ARE MERGED INTO AND SUPERSEDED BY THIS
AGREEMENT. THIS AGREEMENT MAY BE AMENDED ONLY BY A
WRITING EXECUTED BY BOTH PARTIES.
E. GOVERNING LAW - THE INTERPRETATION AND PERFORMANCE
OF THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF
MINNESOTA, EXCLUDING, HOWEVER, ANY CONFLICT OF LAWS
RULE THAT WOULD APPLY THE LAW OF ANOTHER JURISDICTION.
F. CONFIDENTIALITY REQUIRED - NEITHER PARTY SHALL
DISCLOSE DIRECTLY OR INDIRECTLY WITHOUT THE PRIOR
WRITTEN CONSENT OF THE OTHER PARTY THE TERMS OF THIS
AGREEMENT TO A THIRD PARTY EXCEPT (I) IN ORDER TO
COMPLY WITH ANY APPLICABLE LAW, LEGAL PROCESS, ORDER,
REGULATION, OR EXCHANGE RULE; (II) TO THE EXTENT
NECESSARY FOR THE ENFORCEMENT OF THIS AGREEMENT;
HEARTLAND CORN PRODUCTS TRANSPORTATION AGREEMENT �-y
NOVEMBER 1,2023
AND (III) TO THE EXTENT NECESSARY TO IMPLEMENT AND
PERFORM THIS AGREEMENT. EACH PARTY SHALL NOTIFY THE
OTHER PARTY OF ANY DEMAND OR PROCEEDING OF WHICH IT IS
AWARE WHICH MAY RESULT IN DISCLOSURE OF THE TERMS OF
THIS AGREEMENT (OTHER THAN AS PERMITTED HEREUNDER)
AND USE REASONABLE EFFORTS TO PREVENT OR LIMIT THE
DISCLOSURE. THE PARTIES SHALL BE ENTITLED TO ALL
REMEDIES AVAILABLE AT LAW OR IN EQUITY TO ENFORCE OR
SEEK RELIEF IN CONNECTION WITH THIS CONFIDENTIALITY
OBLIGATION. THE TERMS OF THIS AGREEMENT SHALL BE KEPT
CONFIDENTIAL BY THE PARTIES HERETO FOR TWO YEARS FROM
THE EXPIRATION OR TERMINATION OF THIS AGREEMENT.
IN THE EVENT THAT DISCLOSURE IS REQUIRED BY A
GOVERNMENTAL BODY OR APPLICABLE LAW, THE PARTY
SUBJECT TO SUCH REQUIREMENT MAY DISCLOSE THE MATERIAL
TERMS OF THIS AGREEMENT TO THE EXTENT SO REQUIRED, BUT
SHALL PROMPTLY NOTIFY THE OTHER PARTY, PRIOR TO
DISCLOSURE, AND SHALL COOPERATE (CONSISTENT WITH THE
DISCLOSING PARTY'S LEGAL OBLIGATIONS) WITH THE OTHER
PARTY'S EFFORTS TO OBTAIN PROTECTIVE ORDERS OR SIMILAR
RESTRAINTS WITH RESPECT TO SUCH DISCLOSURE AT THE
EXPENSE OF THE OTHER PARTY.
G. AUTHORITY TO ENTER AGREEMENT - EACH PARTY TO THIS
AGREEMENT REPRESENTS AND WARRANTS THAT IT HAS FULL
AND COMPLETE AUTHORITY TO ENTER INTO AND PERFORM THIS
AGREEMENT. EACH PERSON WHO EXECUTES THIS AGREEMENT
ON BEHALF OF EITHER PARTY REPRESENTS AND WARRANTS
THAT IT HAS FULL AND COMPLETE AUTHORITY TO DO SO AND
THAT SUCH PARTY WILL BE BOUND THEREBY.
H. NO THIRD -PARTY BENEFICIARY - THERE IS NO THIRD -PARTY
BENEFICIARY TO THIS AGREEMENT.
HEARTLAND CORN PRODUCTS TRANSPORTATION AGREEMENT p
NOVEMBER 1,2023 V
WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT THROUGH
THEIR DULY AUTHORIZED REPRESENTATIVES EFFECTIVE AS OF THE DATE
SPECIFIED ABOVE
HUTCHINSON UTILITIES
COMMISSION
BY:
NAME:
TITLE:
DATE
WITNESS.'
DATE'.
WITNESS'
DATE.*
HEARTLAND CORN PRODUCTS
BY:
NAME:
TITLE:
DATE.'
WITNESS:
DATE:
HEARTLAND CORN PRODUCTS TRANSPORTATION AGREEMENT
NOVEMBER 1, 2023 19
NATURAL GAS FIRM TRANSPORTATION CAPACITY AGREEMENT
BETWEEN HUTCHINSON UTILITIES COMMISSION
AND HEARTLAND CORN PRODUCTS
ATTACHMENT A
RECEIPT POINT
HUTCHINSON UTILITIES COMMISSION MAY RECEIVE NATURAL, GAS FROM
HEARTLAND CORN PRODUCTS AT THE FOLLOWING RECEIPT POINT:
STATION NAME
COUNTY CITY STATE
NBPL COMPRESSOR STATION 13 MARTIN TRIMONT MINNESOTA
TRIMONT
DELIVERY POINT
HUTCHINSON UTILITIES COMMISSION MAY DELIVER NATURAL GAS TO
HEARTLAND CORN PRODUCTS AT THE FOLLOWING DELIVERY POINT:
STATION NAME COUNTY CITY STATE
HUC/HCP INTERCONNECT SIBLEY GIBBON MINNESOTA
STATION
20
HUTCHINSON UTILITIES COMMISSION��`
Board Action Form
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Agenda Item: Approval of Operating Agreement Heartland Corn Products Natural Gas Transmission I
Presenter: John Webster
Agenda Item Type:
Time Requested (Minutes): 2
New Business
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
Heartland Corn Products(HCP) has requested that the Natural Gas Division of
Hutchinson Utilities Commission perform all of the operation and maintenance, as
required by DOT, on their 6" high pressure natural gas pipeline currently being installed.
The cost for developing all HCP specific manuals and programs required for the
operation and maintenance of HCP's pipeline as well as the cost of implementing a
Public Awareness Program, an Emergency Official Liaison Program, Integrity
Management Program, etc.. will be borne by HCP.
BOARD ACTION REQUESTED:
Approval of Operating Agreement Heartland Corn Products Natural Gas
Transmission Facilities
Fiscal Impact: $48,000 Annual Income
Included in current budget: No Budget Change: No
PROJECT SECTION:
Total Project Cost: 0.00 Remaining Cost: 0.00
NOVEMBER 7, 2023
OPERATING AGREEMENT
HEARTLAND CORN PRODUCTS
NATURAL CAS TRANSMISSION FACILITIES
THIS DOCUMENT SETS FORTH THE TERMS AND CONDITIONS OF
SERVICE FOR OPERATION AND MAINTENANCE OF THE
HEARTLAND CORN PRODUCTS' NATURAL, GAS TRANSMISSION
FACILITIES PROVIDED BY HUTCHINSON UTILITIES
JOHN WEBSTER
HUTCHINSON UTILITIES
225 MICHIGAN ST SE
HUTCHINSON, MN 55350
OPERATING AGREEMENT
THIS TRANSMISSION FACILITIES OPERATING AGREEMENT
("AGREEMENT") IS MADE AND ENTERED INTO ON THIS 7th DAY OF NOVEMBER,
2023, BY AND BETWEEN HEARTLAND CORN PRODUCTS ("OWNER") WITH OFFICES
LOCATED AT 53331 STATE HIGHWAY 19, P.O. BOX A, WINTHROP, MINNESOTA,
55396 AND HUTCHINSON UTILITIES COMMISSION ("OPERATOR") A MINNESOTA
MUNICIPAL. UTILITY LOCATED AT 225 MICHIGAN ST. SE, HUTCHINSON, MINNESOTA,
55350. OWNER AND OPERATOR SHALL HEREINAFTER SOMETIMES BE REFERRED
TO SEPARATELY AS "PARTY" OR JOINTLY AS "PARTIES."
WITNESSETH:
WHEREAS, OWNER HAS CONSTRUCTED OR IS CONSTRUCTING THE
FACILITIES (AS HEREINAFTER DEFINED);
WHEREAS, OWNER IS CONTRACTING WITH OPERATOR TO PROVIDE LONG-
TERM FIRM TRANSPORTATION CAPACITY TO OWNER OVER OPERATOR'S NATURAL.
GAS PIPELINE FACILITIES TO THE POINT OF INTERCONNECTION BETWEEN THE
FACILITIES OF OWNER AND THE FACILITIES OF OPERATOR, PURSUANT TO THAT
CERTAIN NATURAL. GAS FIRM TRANSPORTATION CAPACITY AGREEMENT OF EVEN
DATE HEREWITH; AND
WHEREAS, OWNER DESIRES TO RETAIN OPERATOR TO OPERATE THE
FACILITIES ON BEHALF OF OWNER, AND OPERATOR IS WILLING TO PROVIDE SAID
SERVICES ON THE TERMS AND CONDITIONS SET FORTH HEREIN.
NOW, THEREFORE, IN CONSIDERATION OF THE PREMISES, MUTUAL.
COVENANTS, CONDITIONS AND AGREEMENTS HEREIN CONTAINED, THE PARTIES
HERETO, INTENDING TO BE LEGALLY BOUND, HEREBY AGREE AS FOLLOWS:
ARTICLE I: DEFINED TERMS
SECTION 1.1 DEFINITIONS.
THE DEFINED TERMS USED IN THIS AGREEMENT SHALL, UNLESS THE CONTEXT
OPERATING AGR EEMENT 1
NATURAL GAS TRANS FACILITIES
HEARTLAND CORN PRODUCTS
JOHN WEBSTER
OTHERWISE REQUIRES, HAVE THE MEANINGS SPECIFIED IN THIS ARTICLE I.
"AGRE"E"MEw" MEANS THIS NATURAL. GAS TRANSMISSION FACILITIES
OPERATING AGREEMENT, AS THE SAME MAY FROM TIME TO TIME BE AMENDED
WITH WRITTEN CONSENT OF OWNER AND OPERATOR.
"BUSINESS DAY' MEANS ANY DAY EXCEPT SATURDAY, SUNDAY OR FEDERAL.
RESERVE BANK HOLIDAYS.
"COMMENCEMENT DATE" SHALL MEAN "NINE A.M. CENTRAL. CLOCK TIME"
ON DECEMBER 1, 2023.
"EMERGENCY' MEANS ANY SUSPECTED OR ACTUAL. ABNORMAL. CONDITION
THAT HAS ALREADY CAUSED, OR REPRESENTS AN IMMINENT THREAT TO
CAUSE, FACILITY FAILURE OR DAMAGE, DANGER TO OR LOSS OF LIFE,
POLLUTION, OR ANY HAZARDOUS CONDITION.
"FACILITY' OR "FACILITIES" MEANS THE NATURAL. GAS TRANSMISSION
SYSTEM BELONGING TO OWNER, INCLUDING ALL APPARATUSES THERETO,
COMMENCING AT THE HUC/HCP INTERCONNECT, AS DEFINED IN THE
INTERCONNECT AND NATURAL. GAS FIRM TRANSPORTATION CAPACITY
AGREEMENT, AND EXTENDING TO THE END OF THE OWNER'S TRANSMISSION
SYSTEM, AS FURTHER DESCRIBED AND DEPICTED IN EXHIBIT B.
" GAS" SHALL MEAN NATURAL. GAS, RENEWABLE, MANUFACTURED, ARTIFICIAL.
OR SYNTHETIC GAS, OR ANY MIXTURE OR COMBINATION THEREOF.
"GAS DAY" SHALL MEAN A PERIOD BEGINNING AND ENDING AT 9:00 A.M.,
CENTRAL. CLOCK TIME. THE REFERENCE DATE FOR ANY DAY SHALL BE THE
DATE OF THE BEGINNING OF SUCH DAY.
"GOVERNMENTAL AUTHORirY' MEANS (I) THE UNITED STATES OF AMERICA,
(II) ANY STATE, COUNTY, PARISH, MUNICIPALITY OR OTHER GOVERNMENTAL.
SUBDIVISION WITHIN THE UNITED STATES OF AMERICA, AND (III) ANY COURT
OR TRIBUNAL. OR ANY GOVERNMENTAL. DEPARTMENT, COMMISSION, BOARD,
BUREAU, AGENCY OR OTHER INSTRUMENTALITY OF THE UNITED STATES OF
OPERATING AGR EEMENT 2
NATURAL GAS TRANS FACILITIES
HEARTLAND CORN PRODUCTS
JOHN WEBSTER
AMERICA OR OF ANY STATE, COUNTY, PARISH, MUNICIPALITY OR OTHER
GOVERNMENTAL SUBDIVISION WITH THE UNITED STATES OF AMERICA.
"LAW' MEANS ANY APPLICABLE STATUTE, LAW, ORDINANCE, REGULATION,
RULE, RULING, ORDER, DECREE, WRIT, INJUNCTION, JUDGMENT OR OTHER
OFFICIAL ACT OF OR BY ANY GOVERNMENTAL AUTHORITY.
"MONTHLY OPERATING FEE" MEANS THE FEE FOR OPERATOR PERFORMING
OPERATIONS OF THE FACILITIES AND ROUTINE WORK.
"OPERATIONS" MEANS ALL WORK OR SERVICES REQUIRED TO BE FURNISHED
OR PERFORMED BY OPERATOR PURSUANT TO THIS AGREEMENT.
"OPERATOR" MEANS HUTCHINSON UTILITIES COMMISSION AND ITS
PERMITTED SUCCESSORS AND ASSIGNS HEREUNDER.
"OWNER" MEANS HEARTLAND CORN PRODUCTS AND ITS PERMITTED
SUCCESSORS AND ASSIGNS HEREUNDER.
"PERMITS" MEANS ALL LICENSES, PERMITS, CERTIFICATES, ORDERS,
APPROVALS AND AUTHORIZATIONS OF ANY GOVERNMENTAL AUTHORITY
NECESSARY FOR OR OBTAINED IN CONNECTION WITH OPERATION OF THE
FACILITIES OR PERFORMANCE OF THE OPERATIONS.
"PERSON" MEANS ANY INDIVIDUAL, FIRM, CORPORATION, PARTNERSHIP,
JOINT VENTURE, ASSOCIATION, TRUST OR OTHER ENTITY OR ORGANIZATION,
INCLUDING A GOVERNMENT OR POLITICAL SUBDIVISION OR AN AGENCY OR
INSTRUMENTALITY THEREOF.
"ROUTINE WORD' INCLUDES DAY-TO-DAY OPERATIONS, MAINTENANCE,
TESTING AND REPAIR INCLUDED IN THE MONTHLY OPERATING FEE AND MORE
PARTICULARLY DEFINED IN EXHIBIT C OF THIS AGREEMENT.
"NON -ROUTINE WORD' INCLUDES WORK NOT INCLUDED IN THE MONTHLY
OPERATING FEE, BUT SHALL BE PROVIDED ON AN AS -NEEDED BASIS. SAID
SERVICES AND FEES ARE SET FORTH IN EXHIBIT D.
OPERATING AGR EEMENT
NATURAL GAS TRANS FACILITIES
HEARTLAND CORN PRODUCTS
JOHN WEBSTER
" YEAR MEANS A PERIOD OF 12 CONSECUTIVE MONTHS COMMENCING WITH
JANUARY 1 AND ENDING ON THE FOL.L.OWING DECEMBER 3 1.
SECTION 1.2 REFERENCES, GENDER, NUMBER.
UNLESS THE CONTEXT REQUIRES OTHERWISE, ALL REFERENCES IN THIS
AGREEMENT TO AN "ARTICLE," "SECTION" OR "SUBSECTION" SHALL BE TO AN
ARTICLE, SECTION OR SUBSECTION OF THIS AGREEMENT, AND THE WORDS "THIS
AGREEMENT," "HEREOF," "HEREUNDER," "HEREIN," "HEREBY," OR WORDS OF
SIMILAR IMPORT SHALL REFER TO THIS AGREEMENT AS A WHOLE AND NOT TO A
PARTICULAR ARTICLE, SECTION, SUBSECTION, CLAUSE OR OTHER SUBDIVISION
HEREOF. WHENEVER THE CONTEXT REQUIRES, THE WORDS USED HEREIN SHALL
INCLUDE THE MASCULINE, FEMININE AND NEUTER GENDER, AND THE SINGULAR AND
THE PLURAL.
ARTICLE II: RESPONSIBILITIES OF OPERATOR
SECTION 2.1 GENERAL. RESPONSIBILITIES.
(A) GENERAL..
OPERATOR IS HEREBY APPOINTED TO PERFORM THE OPERATIONS
ACCORDING TO PRUDENT PRACTICES GENERALLY FOLLOWED BY THE GAS
PIPELINE INDUSTRY UNDER SIMILAR CIRCUMSTANCES. TO THE EXTENT
NECESSARY TO CARRY OUT ITS DUTIES HEREUNDER, OPERATOR CERTIFIES
THAT IT IS QUALIFIED UNDER THE OPERATOR QUALIFICATION PROGRAM AS
REQUIRED BY THE FEDERAL. DEPARTMENT OF TRANSPORTATION AND THE
MINNESOTA OFFICE OF PIPELINE SAFETY. OPERATOR SHALL PROVIDE
OWNER WITH THE SERVICES REQUIRED FOR THE OPERATION, TESTING,
MAINTENANCE AND REPAIR OF THE FACILITIES AS MORE FULLY DESCRIBED
BELOW AND ON EXHIBIT C AND D. OWNER AND OPERATOR SHALL HAVE
UNRESTRICTED ACCESS TO THE FACILITIES. IT IS EXPRESSLY UNDERSTOOD
AND AGREED THAT IN THE PERFORMANCE OF ITS OBLIGATIONS UNDER THIS
AGREEMENT, OPERATOR IS AND SHALL AT ALL TIMES BE AN INDEPENDENT
CONTRACTOR. OPERATOR, AS AN INDEPENDENT CONTRACTOR, SHALL BE
OPERATING AGR EEMENT
NATURAL GAS TRANS FACILITIES 4
HEARTLAND CORN PRODUCTS
JOHN WEBSTER
SOLELY RESPONSIBLE FOR ITS EMPLOYEES AND EQUIPMENT. OWNER
ACKNOWLEDGES THAT THE OPERATIONS ARE DEPENDENT UPON OWNER
PROVIDING OPERATOR ACCESS TO THE FACILITIES.
(B) ROUTINE WORK.
ON AND AFTER THE COMMENCEMENT DATE, OPERATOR SHALL PERFORM OR
CAUSE TO BE PERFORMED ALL ROUTINE WORK FOR THE FACILITIES,
INCLUDING BUT NOT LIMITED TO, OPERATION, REPAIR, IMPROVEMENT,
MAINTENANCE, ALTERATION, INSPECTION, TESTING, PROTECTION AND OTHER
OPERATIONS AND ACTIVITIES WITH RESPECT TO THE FACILITIES AS ARE
REASONABLY NECESSARY TO MAINTAIN THE FACILITIES IN A "FIRST-CLASS
OPERATING CONDITION" IN ACCORDANCE WITH THE FEDERAL SAFETY AND
MAINTENANCE STANDARDS PROMULGATED UNDER 49 CFR PART 192 AND
THE REGULATIONS OF THE MINNESOTA OFFICE OF PIPELINE SAFETY. THE
ROUTINE WORK IS DESCRIBED IN GREATER DETAIL IN EXHIBIT C.
(C) NON -ROUTINE WORK.
OPERATOR WILL PERFORM ALL NON -ROUTINE WORK AS TO THE FACILITIES,
IN ACCORDANCE WITH THIS SECTION. OPERATOR WILL RECOMMEND NON -
ROUTINE WORK AS DESCRIBED IN EXHIBIT D ATTACHED HERETO WHEN, IN
OPERATOR'S OPINION, THE CONDITION OF THE FACILITIES MIGHT IMPAIR
RELIABILITY, OR WHEN IT IS OTHERWISE DEEMED NECESSARY OR
PREFERABLE, CONSISTENT WITH PRUDENT PRACTICES GENERALLY
FOLLOWED BY THE GAS PIPELINE INDUSTRY UNDER SIMILAR CIRCUMSTANCES
("RECOMMENDED NON -ROUTINE WORK"). OPERATOR WILL NOTIFY AND
PROVIDE RECOMMENDATIONS TO OWNER AS SOON AS PRACTICAL AFTER
IDENTIFYING THE NEED FOR RECOMMENDED NON -ROUTINE WORK. OWNER
WILL REVIEW AND ACT ON OPERATOR'S RECOMMENDED NON -ROUTINE
WORK AS SOON AS PRACTICAL AFTER NOTIFICATION. OWNER WILL NOT
UNREASONABLY WITHHOLD OR DELAY ITS APPROVAL OF ANY REASONABLE
OPERATOR RECOMMENDED NON -ROUTINE WORK CONCERNING A
CONDITION AFFECTING THE FACILITIES THAT MIGHT IMPAIR THE RELIABILITY
OPERATING AGR EEMENT
NATURAL GAS TRANS FACILITIES
HEARTLAND CORN PRODUCTS
JOHN WEBSTER
OR SAFETY OF THE FACILITIES. IN THE EVENT THAT OWNER FAILS TO
APPROVE OPERATOR RECOMMENDED NON -ROUTINE WORK, THEN
OPERATOR SHALL BEAR NO RESPONSIBILITY OR LIABILITY WHATSOEVER FOR
ANY CLAIMS, LOSSES, COSTS, EXPENSES, DEMANDS, FINES, PERSONAL
INJURY, OR PROPERTY DAMAGE ARISING FROM OR RELATED TO THE
FACILITIES CONNECTED WITH SUCH RECOMMENDED NON -ROUTINE WORK.
(D) EMERGENCY WORK.
OPERATOR WILL PERFORM ALL EMERGENCY MAINTENANCE AND REPAIR OF
THE FACILITIES CONSISTENT WITH PRUDENT PRACTICES GENERALLY
FOLLOWED BY THE GAS PIPELINE INDUSTRY UNDER SIMILAR
CIRCUMSTANCES. OPERATOR WILL NOTIFY OWNER OF ANY EMERGENCY
CONDITION AFFECTING THE FACILITIES PROMPTLY AFTER OPERATOR LEARNS
OF SUCH CONDITION AND WILL CONSULT WITH OWNER, AS FAR AS
PRACTICAL, CONCERNING THE ACTIONS THAT ARE NECESSARY. IF OWNER
FAILS TO RESPOND OR IF OPERATOR IS OTHERWISE UNABLE TO CONSULT
WITH OWNER, THE OPERATOR SHALL TAKE THOSE ACTIONS THAT OPERATOR
BELIEVES ARE NECESSARY CONSISTENT WITH PRUDENT UTILITY PRACTICES
AND WILL CONTACT OWNER AS SOON AS POSSIBLE AFTER THE FACT.
(E) SCHEDULING.
TO THE EXTENT REASONABLY POSSIBLE, THE PERFORMANCE OF REPAIR OR
MAINTENANCE THAT AFFECTS THE OPERATIONS OF THE FACILITIES SHALL BE
SCHEDULED TO BE PERFORMED ONLY AT TIMES ACCEPTABLE TO OWNER.
EXCEPT FOR EMERGENCY OR UNPLANNED WORK, IN THE EVENT IT IS
NECESSARY TO EITHER INTERRUPT OR CURTAIL THE GAS SUPPLY OR TO
OTHERWISE IMPOSE ABNORMAL OPERATING CONDITIONS ON THE FACILITIES,
OWNER SHALL BE NOTIFIED IN ADVANCE AND AN AGREEMENT MUST BE
REACHED AS TO THE TIME SCHEDULED FOR SUCH WORK.
OPERATING AGR EEMENT
NATURAL GAS TRANS FACILITIES
HEARTLAND CORN PRODUCTS
JOHN WEBSTER
(F) WORK BY OTHERS.
IF ANY PART OF THE OPERATIONS IS DEPENDENT UPON THE QUALITY AND
COMPLETENESS OF WORK PERFORMED UNDER ANOTHER CONTRACT
UNRELATED TO OPERATOR, OPERATOR SHALL NOT BE RESPONSIBLE IF THE
WORK PERFORMED UNDER THE OTHER CONTRACT IS DEFECTIVE OR
UNSUITABLE AND SUCH CONDITION AFFECTS THE TIMING, SCHEDULING OR
QUALITY OF THE OPERATIONS PERFORMED BY OPERATOR HEREUNDER.
SECTION 2.2 PERSONNEL.
OPERATOR MAY EMPLOY OR, CONTRACT FOR, THE SERVICES OF AND BE
RESPONSIBLE FOR THE SUPERVISION OF PERSONS (INCLUDING CONSULTANTS AND
PROFESSIONAL, SERVICE OR OTHER ORGANIZATIONS) REASONABLY REQUIRED BY
OPERATOR TO PERFORM THE OPERATIONS IN AN EFFICIENT AND PRUDENT MANNER.
THE NUMBER OF PERSONS USED BY OPERATOR IN CONDUCTING THE OPERATIONS,
THEIR HOURS OF WORK AND THEIR COMPENSATION FOR SERVICES PERFORMED
SHALL BE DETERMINED BY OPERATOR. ALL EMPLOYEES AND OTHER PERSONNEL
PROVIDED BY OPERATOR PURSUANT TO THIS AGREEMENT SHALL BE THE
EMPLOYEES OR INDEPENDENT CONTRACTORS OF OPERATOR AND IN NO EVENT
SHALL SUCH EMPLOYEES OR OTHER PERSONNEL BE DEEMED EMPLOYEES OR
CONTRACTORS OF OWNER. ON OR BEFORE THE COMMENCEMENT DATE,
OPERATOR SHALL DESIGNATE TO OWNER IN WRITING A REPRESENTATIVE WHO
SHALL BE AUTHORIZED TO ACT ON BEHALF OF OPERATOR AS TO THE OPERATIONS
AND WITH WHOM OWNER MAY CONSULT AT ALL REASONABLE TIMES. OPERATOR
MAY CHANGE ITS REPRESENTATIVE BY WRITTEN NOTICE TO OWNER.
SECTION 2.3 OPERATOR WARRANTIES.
OPERATOR WARRANTS AND REPRESENTS TO OWNER AS FOLLOWS: OPERATOR
SHALL PERFORM THE OPERATIONS, AND SHALL REQUIRE ALL CONTRACTORS,
SUBCONTRACTORS AND MATERIALMEN FURNISHING LABOR, MATERIAL OR
SERVICES FOR THE OPERATIONS TO PERFORM THEIR SERVICES AND CARRY OUT
THEIR RESPONSIBILITIES, IN A DILIGENT, SAFE AND EFFICIENT MANNER IN
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ACCORDANCE WITH GOOD WORKMANLIKE AND PRUDENT PRACTICES GENERALLY
FOLLOWED BY THE GAS PIPELINE INDUSTRY UNDER SIMILAR CIRCUMSTANCES, BUT
SUCH PRACTICES SHALL NOT BE LESS THAN AS MAY BE SPECIFICALLY REQUIRED BY
THIS AGREEMENT. IN CARRYING OUT SUCH RESPONSIBILITIES, OPERATOR SHALL
COMPLY, AND SHALL USE ITS REASONABLE EFFORTS TO REQUIRE ALL
CONTRACTORS, SUBCONTRACTORS AND MATERIALMEN TO COMPLY, WITH ALL
LAWS OF GOVERNMENTAL AUTHORITIES HAVING JURISDICTION. ALL POLICIES AND
PROCEDURES TO BE DEVELOPED BY OPERATOR HEREUNDER SHALL BE AVAILABLE
TO OWNER FOR ITS REVIEW AT OPERATOR'S OFFICE DURING NORMAL BUSINESS
HOURS.
THESE WARRANTIES ARE EXCLUSIVE AND GIVEN IN LIEU OF ALL OTHER
WARRANTIES WHETHER STATUTORY, EXPRESS, OR IMPLIED (INCLUDING
ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, NONINFRINGEMENT OF THIRD PARTY
INTELLECTUAL PROPERTY RIGHTS, OR ANY WARRANTY ARISING FROM A
COURSE OF DEALING, USAGE, OR TRADE PRACTICE).
SECTION 2.4 OWNER WARRANTIES.
OWNER WARRANTS AND REPRESENTS TO OPERATOR THAT THE INFORMATION IT
SUPPLIES TO OPERATOR UPON WHICH THE OPERATIONS MAY BE BASED IS TRUE AND
CORRECT TO THE BEST OF OWNER'S KNOWLEDGE.
SECTION 2.5 MONTHLY OPERATING FEE FOR ROUTINE WORK.
WITH RESPECT TO EACH CALENDAR MONTH FROM AND AFTER THE
COMMENCEMENT DATE, OWNER SHALL PAY TO OPERATOR AN INITIAL MONTHLY
OPERATING FEE OF $4,000.00 FOR PERFORMING ROUTINE WORK.
THE PARTIES SHALL REVIEW THE MONTHLY OPERATING FEE ON AN ANNUAL BASIS,
STARTING ON NOVEMBER 1, 2024 AND ON EACH NOVEMBER 1 THEREAFTER, AND
RESERVE THE RIGHT TO MODIFY THE FEES UPON MUTUAL AGREEMENT.
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SECTION 2.6 COMPENSATION FOR NON -ROUTINE WORK.
EXCEPT FOR ANY NON -ROUTINE EXPENDITURE THAT RESULTS FROM OPERATOR'S
BREACH OF THIS AGREEMENT, NEGLIGENCE, OR WILLFUL MISCONDUCT, OWNER
SHALL BEAR THE COST OF ANY DIRECT OUT-OF-POCKET EXPENDITURE REASONABLY
INCURRED BY OPERATOR FOR NON -ROUTINE AND EMERGENCY WORK PERFORMED
IN CONNECTION WITH THE FACILITIES, INCLUDING LABOR AND MATERIALS, PLUS
OPERATOR'S OVERHEAD OF 15 PERCENT (1 5%) OF SUCH COSTS. ANY NON -
ROUTINE WORK THAT IS IN EXCESS OF $ 1,000.00 PER EVENT AND THAT IS NOT THE
RESULT OF AN EMERGENCY, WILL BE REVIEWED AND APPROVED BY THE OWNER IN
ADVANCE, SUBJECT TO SECTION 2.1 (C). "NON -ROUTINE WORK" IS DEFINED IN
MORE DETAIL. IN EXHIBIT D ATTACHED HERETO.
THE PARTIES SHALL REVIEW THE NON -ROUTINE FEES ON AN ANNUAL. BASIS,
STARTING ON NOVEMBER 1, 2024 AND ON EACH NOVEMBER 1 THEREAFTER, AND
RESERVE THE RIGHT TO MODIFY THE FEES UPON MUTUAL. AGREEMENT.
SECTION 2.7 PAYMENT.
ON OR BEFORE THE FIFTEENTH (1 5TH) DAY OF EACH CALENDAR MONTH,
OPERATOR SHALL RENDER AN INVOICE TO OWNER INDICATING ALL FEES
PAYABLE UNDER THIS AGREEMENT FOR THE PRECEDING CALENDAR MONTH.
PAYMENT IS DUE FROM OWNER ON OR BEFORE THE FIFTEENTH DAY
FOLLOWING THE DATE THE BILL IS ISSUED BY OPERATOR. A LATE PAYMENT
CHARGE OF ONE AND ONE-HALF PERCENT PER MONTH, OR THE LEGALLY
AUTHORIZED MAXIMUM INTEREST RATE, WHICHEVER IS LOWER, SHALL BE
LEVIED ON ANY UNPAID BALANCES.
SECTION 2.8 OWNER DUTIES.
OWNER SHALL FULLY COOPERATE WITH OPERATOR IN PERFORMING
OPERATIONS. OWNER HEREBY GRANTS OPERATOR THE NON-EXCLUSIVE
RIGHT TO ACCESS AND USE THE FACILITIES, FOR PURPOSES OF AND SUBJECT
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TO THE TERMS OF THIS AGREEMENT.
ARTICLE III: TRANSFERS OF RESPONSIBILITIES OF OPERATOR
TRANSFER OF RESPONSIBILITIES.
(A) UPON THE EXPIRATION OF THIS AGREEMENT OR THE REMOVAL OF OPERATOR
UNDER SECTION 7.2, THE OPERATOR SHALL ASSIGN, TRANSFER AND
DELIVER TO THE PERSON SELECTED BY OWNER TO SUCCEED OPERATOR (OR
TO SUCH OTHER PERSONS AS OWNER SHALL DIRECT) (1) POSSESSION AND
CONTROL OF THE FACILITIES AND ALL OPERATIONS AND (2) TO THE EXTENT
REQUESTED BY OWNER, ALL CONTRACTS, WARRANTIES, OPERATING AND
MAINTENANCE MANUALS, DESIGNS, DRAWINGS, OPERATIONAL PLANS,
PROPRIETARY INFORMATION AND OPERATIONAL RIGHTS OBTAINED OR
ENTERED INTO BY OPERATOR EXCLUSIVELY WITH RESPECT TO THE FACILITIES
OR EXCLUSIVELY IN CONNECTION WITH THE OPERATIONS, IN EACH CASE
WITHOUT GIVING RISE TO ANY PENALTY, CHARGE, RESTRICTION, LIEN,
SECURITY INTEREST, ENCUMBRANCE, CANCELLATION, TERMINATION,
ACCELERATION OR CHANGE IN TERMS NOT PREVIOUSLY APPROVED BY
OWNER. OPERATOR SHALL FULLY COOPERATE WITH OWNER IN TRANSFER
OF OPERATIONS HEREUNDER TO OWNER OR A SUCCESSOR OPERATOR
DESIGNATED BY OWNER. UPON TERMINATION, OPERATOR SHALL RETURN TO
OWNER ALL ORIGINAL RECORDS AND ANY MATERIALS PURCHASED BY
OPERATOR AND PAID FOR BY OWNER, SUCH AS PRETESTED PIPE, VALVES AND
OTHER MISCELLANEOUS MATERIALS AND SUPPLIES.
(B) AS SOON AS PRACTICABLE AFTER THE DATE ON WHICH THE OPERATOR IS
REQUIRED TO TRANSFER ITS RESPONSIBILITIES AS PROVIDED IN ARTICLE III
(A), OWNER MAY CONDUCT AN AUDIT AND INVENTORY OF THE FACILITIES AND
ALL OF OWNER'S ASSETS AND PROPERTIES OPERATED, MANAGED OR
CONTROLLED BY OPERATOR. SUCH AUDITS AND INVENTORY SHALL BE USED
IN THE RETURN OF AND THE ACCOUNTING FOR THE FACILITIES AND OWNER'S
PROPERTIES AND ASSETS BY OPERATOR FOR THE PURPOSES OF THE
TRANSFER OF RESPONSIBILITIES UNDER ARTICLE III. ALL COSTS AND
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EXPENSES INCURRED IN CONNECTION WITH SUCH AUDITS AND INVENTORY
SHALL, BE BORNE BY OWNER.
ARTICLE IV: INSURANCE
SECTION 4.1 OWNER'S INSURANCE.
OWNER SHALL PROCURE AND MAINTAIN IN FULL FORCE AND EFFECT, AT THE
OWNER'S COST, ALL RISK PROPERTY INSURANCE IN AN AMOUNT EQUAL TO THE
FULL INSURABLE VALUE OF THE FACILITIES.
SECTION 4.2 OPERATOR'S INSURANCE.
OPERATOR SHALL PROCURE AND MAINTAIN IN FULL FORCE AND EFFECT AT THE
OPERATOR'S COST, THE FOLLOWING INSURANCE COVERAGE:
(A) HCP SHALL PROVIDE WORKER'S COMPENSATION INSURANCE FOR ALL OF
ITS EMPLOYEES IN ACCORDANCE WITH THE STATUTORY REQUIREMENTS OF
THE STATE OF MINNESOTA. HCP SHALL ALSO CARRY EMPLOYER'S
LIABILITY COVERAGE WITH MINIMUM LIMITS AS FOLLOWS:
• $500,000 - BODILY INJURY BY DISEASE PER EMPLOYEE
• $500,000 - BODILY INJURY BY DISEASE AGGREGATE
• $500,000 - BODILY INJURY BY ACCIDENT
(B) HCP SHALL MAINTAIN COMMERCIAL GENERAL LIABILITY INSURANCE IN A
MINIMUM AMOUNT OF $1,500,000 PER OCCURRENCE; $2,000,000
ANNUAL AGGREGATE.
(C) AUTOMOBILE LIABILITY INSURANCE COVERING OWNED, NON -OWNED, AND
HIRED VEHICLES WITH MINIMUM COMBINED SINGLE LIABILITY LIMIT OF
$1 ,000,000 PER OCCURRENCE.
(D) HCP SHALL MAINTAIN EXCESS LIABILITY INSURANCE COVERAGE IN A
MINIMUM AMOUNT OF $2,000,000.
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HUC'S MAXIMUM LIABILITY IS LIMITED TO A COMBINED SINGLE LIMIT OF
1 ,500,000 BY MINNESOTA STATUTE.
THE INSURANCE REQUIRED IN (B), (C) AND (D) SHALL REFLECT THAT THE OTHER
PARTY IS AN ADDITIONAL INSURED. WITHIN THIRTY (30) DAYS OF EFFECTIVE DATE
OF THIS AGREEMENT, EACH PARTY SHALL FURNISH TO THE OTHER PARTY
CERTIFICATES AS EVIDENCE SHOWING THAT THE INSURANCE POLICIES TO BE
CARRIED IN ACCORDANCE WITH THIS PROVISION HAVE BEEN OBTAINED. ALL
INSURANCE TO BE CARRIED PURSUANT TO THE ABOVE SHALL BE ENDORSED TO
REQUIRE THE INSURER TO FURNISH 30 DAYS' WRITTEN NOTICE PRIOR TO EFFECTIVE
DATE OF ANY MODIFICATION OR CANCELLATION OF SUCH INSURANCE TO THE
CERTIFICATE HOLDER. THE PARTIES AGREE THAT THE LIMITS OF INSURANCE WILL
BE AT LEAST IN AN AMOUNT EQUAL TO THE MAXIMUM LIABILITY LIMITS FOR
MUNICIPALITIES IN MINNESOTA AS MAY BE ADJUSTED FROM TIME TO TIME.
ARTICLE V: FORCE MAJEURE
SECTION 5.1 PERFORMANCE EXCUSED.
IF ANY PARTY IS RENDERED UNABLE, WHOLLY OR IN PART, BY FORCE MAJEURE TO
CARRY OUT ITS OBLIGATIONS UNDER THIS AGREEMENT, OTHER THAN THE
OBLIGATION TO MAKE MONEY PAYMENTS OR TO FURNISH SECURITY, THAT PARTY
SHALL GIVE TO ALL OTHER PARTIES PROMPT WRITTEN NOTICE OF THE FORCE
MAJEURE WITH REASONABLY FULL PARTICULARS CONCERNING IT; AND THEREUPON,
THE OBLIGATIONS OF THE PARTY GIVING NOTICE, SO FAR AS THEY ARE AFFECTED BY
THE FORCE MAJEURE, SHALL BE SUSPENDED DURING, BUT NO LONGER THAN, THE
CONTINUANCE OF THE FORCE MAJEURE. THE PARTY CLAIMING FORCE MAJEURE
SHALL NOTIFY THE OTHER PARTIES OF THE FORCE MAJEURE SITUATION WITHIN A
REASONABLE TIME AFTER THE OCCURRENCE OF THE FACTS RELIED ON AND SHALL
KEEP ALL PARTIES INFORMED OF ALL SIGNIFICANT DEVELOPMENTS. SUCH NOTICE
SHALL GIVE REASONABLY FULL PARTICULARS OF SAID FORCE MAJEURE, AND ALSO
ESTIMATE THE PERIOD OF TIME, WHICH SAID PARTY WILL PROBABLY REQUIRE TO
REMEDY THE FORCE MAJEURE. FORCE MAJEURE DOES NOT RELIEVE THE
OPERATOR OF THE CONTRACTUAL RESPONSIBILITIES TO OPERATE THE FACILITIES;
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PROVIDED THAT, THE FACILITIES CAN BE OPERATED UTILIZING REASONABLE AND
SAFE METHODS. THE AFFECTED PARTY SHALL USE ALL REASONABLE DILIGENCE TO
REMOVE THE FORCE MAJEURE SITUATION AS QUICKLY AS PRACTICABLE IN AN
ECONOMIC MANNER. THE REQUIREMENT THAT ANY FORCE MAJEURE SHALL BE
REMEDIED WITH ALL REASONABLE DISPATCH, SHALL NOT REQUIRE THE
SETTLEMENT OF STRIKES, LOCKOUTS OR OTHER LABOR DIFFICULTY BY THE PARTY
INVOLVED, CONTRARY TO ITS WISHES; HOW ALL SUCH DIFFICULTIES SHALL BE
HANDLED SHALL BE ENTIRELY WITHIN THE DISCRETION OF THE PARTY CONCERNED.
SECTION 5.2 FORCE MAJEURE DEFINED.
THE TERM "FORCE MAJEURE", AS HERE EMPLOYED, SHALL MEAN AN ACT OF GOD,
STRIKE, LOCKOUT OR OTHER INDUSTRIAL DISTURBANCE, ACT OF THE PUBLIC
ENEMY, PANDEMICS, SUPPLY CHAIN ISSUES, WAR, BLOCKADE, PUBLIC RIOT,
LIGHTNING, FIRE, STORM, FLOOD, EARTHQUAKE, EXPLOSION, GOVERNMENTAL
ACTION, GOVERNMENTAL DELAY, RESTRAINT OR INACTION, UNAVAILABILITY OF
EQUIPMENT AND ANY OTHER CAUSE, WHETHER OF THE KIND SPECIFICALLY
ENUMERATED ABOVE OR OTHERWISE, WHICH IS NOT REASONABLY WITH THE
CONTROL OF THE PARTY CLAIMING SUSPENSION.
ARTICLE VI: ASSIGNMENT
SECTION 6.1 ASSIGNMENT BY OWNER.
OWNER MAY NOT ASSIGN ALL OR ANY PART OF ITS RIGHTS OR OBLIGATIONS UNDER
THIS AGREEMENT WITHOUT PRIOR WRITTEN CONSENT OF OPERATOR.
SECTION 6.2 ASSIGNMENT BY OPERATOR.
OPERATOR MAY NOT ASSIGN ALL OR ANY PART OF ITS RIGHTS OR OBLIGATIONS
UNDER THIS AGREEMENT WITHOUT THE PRIOR WRITTEN CONSENT OF OWNER.
SUCH APPROVALS SHALL NOT BE UNREASONABLY DELAYED, WITHHELD OR
CONDITIONED.
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ARTICLE VII: TERM
SECTION 7.1 TERM.
THIS AGREEMENT SHALL, BECOME EFFECTIVE ON THE COMMENCEMENT DATE AND
SHALL CONTINUE IN FORCE AND EFFECT UNTIL "NINE A.M. CENTRAL CLOCK TIME"
ON DECEMBER 1, 2043, AND YEAR-TO-YEAR THEREAFTER, SUBJECT TO
TERMINATION.
(A) OWNER SHALL NOTIFY OPERATOR IN WRITING NINETY (90) DAYS PRIOR TO
THE EXPIRATION DATE OF THIS AGREEMENT AS TO OWNER'S DESIRE FOR
OPERATOR TO CONTINUE OPERATIONS OF THE FACILITY. OPERATOR SHALL
RESPOND IN WRITING TO OWNER WITHIN THIRTY (30) DAYS OF RECEIPT OF
OWNER'S NOTICE AND ON OR BEFORE SIXTY (60) DAYS PRIOR TO THE
EXPIRATION OF THIS AGREEMENT REGARDING THE OPERATOR'S DESIRE TO
CONTINUE AS OPERATOR.
(B) OPERATOR SHALL RESERVE THE RIGHT TO REVIEW AND MODIFY ANY AND
ALL FEES IN THIS AGREEMENT IN OCTOBER 2628, AND EACH) YEARS
THEREAFTER, TO BE EFFECTIVE IN DECEMBER OF THAT YEAR, DUE TO
CHANGES IN HUTCHINSON'S LABOR AND MATERIAL RATES.
SECTION 7.2 DEFAULT AND TERMINATION.
UPON FAILURE BY EITHER PARTY IN THE PERFORMANCE OF ANY PROVISION,
CONDITION OR REQUIREMENT HEREIN, THE OTHER PARTY MAY GIVE NOTICE IN
WRITING TO THE DEFAULTING PARTY SPECIFYING THE DEFAULT. UNLESS SUCH
DEFAULT IS CURED WITHIN THIRTY (30) DAYS FOLLOWING RECEIPT OF SUCH NOTICE
TO THE DEFAULTING PARTY, OR IF SUCH DEFAULT IS SUSCEPTIBLE OF BEING CURED
AND SUCH CURE CANNOT BE COMPLETED WITH SUCH THIRTY (30) DAYS PERIOD,
THEN IF THE CURE THEREOF IS NOT UNDERTAKEN PROMPTLY UPON RECEIPT OF
SUCH NOTICE AND DILIGENTLY PROSECUTED THEREAFTER, THIS AGREEMENT MAY
BE TERMINATED WITHIN SIXTY (60) DAYS OF THE DATE OF THE NOTICE CLAIMING
DEFAULT WAS WRITTEN AT THE OPTION OF THE PARTY SERVING SUCH NOTICE OF
DEFAULT.
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SECTION 7.3 EFFECT OF TERMINATION.
TERMINATION OF THIS AGREEMENT SHALL, NOT RELIEVE EITHER PARTY FROM ANY
OBLIGATION INCLUDING PAYMENTS DUE FOR OPERATIONS AS PROVIDED IN THIS
AGREEMENT, ACCRUING TO THE DATE OF SUCH TERMINATION OR RELIEVE ANY
PARTY OF ANY LIABILITY FOR ITS BREACH OF THIS AGREEMENT. ARTICLE III SHALL
SURVIVE ANY TERMINATION OF THIS AGREEMENT.
ARTICLE VIII: MISCELLANEOUS
SECTION 8.1 GOVERNING LAW.
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF MINNESOTA WITHOUT REFERENCE TO THE CHOICE OR
CONFLICT OF LAW, RULES OR PRINCIPALS THEREOF WHICH WOULD REFER THE
MATTER TO THE LAWS OF ANOTHER JURISDICTION.
EACH PARTY SHALL ABIDE BY THE LAWS OF ANY GOVERNMENTAL AUTHORITIES
WITH JURISDICTION OVER THE MATTERS OF THIS AGREEMENT, AS MAY BE AMENDED
FROM TIME TO TIME.
SECTION 8.2 ENTIRE AGREEMENT.
THIS AGREEMENT AND THE SCHEDULES AND EXHIBITS HERETO CONTAIN THE
ENTIRE AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT
MATTER HEREOF AND THERE ARE NO AGREEMENTS, UNDERSTANDING,
REPRESENTATIONS OR WARRANTIES BETWEEN THE PARTIES OTHER THAN THOSE
SET FORTH OR REFERRED TO HEREIN.
SECTION 8.3 NOTICES.
EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED, ALL NOTICES AUTHORIZED OR
REQUIRED BETWEEN THE PARTIES BY ANY OF THE PROVISIONS OF THIS AGREEMENT,
SHALL BE IN WRITING, IN ENGLISH AND DELIVERED IN PERSON OR BY REGISTERED
MAIL OR BY COURIER SERVICE OR BY ANY ELECTRONIC MEANS OF TRANSMITTING
WRITTEN COMMUNICATIONS THAT PROVIDES CONFIRMATION OF COMPLETE
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TRANSMISSION, AND ADDRESSED TO SUCH PARTIES AS DESIGNATED BELOW. THE
ORIGINATING NOTICE GIVEN UNDER ANY PROVISION OF THIS AGREEMENT SHALL BE
DEEMED DELIVERED ONLY WHEN RECEIVED BY THE PARTY TO WHOM SUCH NOTICE
IS DIRECTED, AND THE TIME FOR SUCH PARTY TO DELIVER ANY NOTICE IN RESPONSE
TO SUCH ORIGINATING NOTICE SHALL RUN FROM THE DATE THE ORIGINATING
NOTICE IS RECEIVED. THE SECOND OR ANY RESPONSE NOTICE SHALL BE DEEMED
DELIVERED WHEN RECEIVED. "RECEIVED", FOR PURPOSES OF THIS SECTION WITH
RESPECT TO WRITTEN NOTICE DELIVERED PURSUANT TO THIS AGREEMENT, SHALL
BE ACTUAL DELIVERY OF THE NOTICE TO THE ADDRESS OF THE PARTY TO BE
NOTIFIED, SPECIFIED IN ACCORDANCE WITH THIS SECTION. EACH PARTY SHALL
HAVE THE RIGHT TO CHANGE ITS ADDRESS AT ANY TIME AND/OR DESIGNATE THAT
COPIES OF ALL SUCH NOTICES BE DIRECTED TO ANOTHER PERSON AT ANOTHER
ADDRESS, BY GIVING WRITTEN NOTICE THEREOF TO ALL OTHER PARTIES.
HEARTLAND CORN PRODUCTS
53331 STATE HIGHWAY 19
P.O. Box A
WINTHROP, MN 55396
ATTENTION: TOM PAITRICK
E-MAIL: TOMP@HEARTLANDCORN.COM
TELEPHONE No.: 507-647-5000
HUTCHINSON UTILITIES COMMISSION
225 MICHIGAN ST. SE
HUTCHINSON, MINNESOTA 55350
ATTENTION: JOHN WEBSTER
E-MAIL: JWEBSTER@HUTCHINSONMN.GOV
SECTION 8.4 SUCCESSORS AND ASSIGNS.
SUBJECT TO THE RESTRICTIONS AND REQUIREMENTS ON ASSIGNMENT AND
TRANSFER CONTAINED IN THIS AGREEMENT, THIS AGREEMENT SHALL BE BINDING
UPON AND INURE TO THE BENEFIT OF THE PARTIES HERETO AND THEIR RESPECTIVE
SUCCESSORS AND ASSIGNS.
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SECTION 8.5 HEADINGS.
THE HEADINGS TO ARTICLES, SECTIONS AND OTHER SUBDIVISION OF THIS
AGREEMENT ARE INSERTED FOR CONVENIENCE OF REFERENCE ONLY AND WILL. NOT
AFFECT THE MEANING OR INTERPRETATION OF THIS AGREEMENT.
SECTION 8.6 AMENDMENTS AND WAIVERS.
THIS AGREEMENT MAY NOT BE MODIFIED OR AMENDED EXCEPT BY AN INSTRUMENT
OR INSTRUMENTS IN WRITING, SIGNED BY ALL PARTIES. ANY PARTY MAY, ONLY BY
AN INSTRUMENT IN WRITING, WAIVE COMPLIANCE BY ANOTHER PARTY HERETO WITH
ANY TERM OR PROVISION OF THIS AGREEMENT ON THE PART OF SUCH OTHER PARTY
HERETO TO BE PERFORMED OR COMPLIED WITH. THE WAIVER BY ANY PARTY OF A
BREACH OF ANY TERM OR PROVISION OF THIS AGREEMENT SHALL NOT BE
CONSTRUED AS A WAIVER OF ANY SUBSEQUENT BREACH.
SECTION 8.7 SCHEDULES AND EXHIBIT.
ALL SCHEDULES AND EXHIBITS TO THIS AGREEMENT ARE HEREBY INCORPORATED
BY REFERENCE.
SECTION 8.8 AGREEMENT FOR THE PARTIES' BENEFIT ONLY.
THIS AGREEMENT IS NOT INTENDED TO CONFER UPON ANY PERSON NOT A PARTY
HERETO OR A PERMITTED SUCCESSOR OR ASSIGN OF A PARTY ANY RIGHTS OR
REMEDIES HEREUNDER, AND NO PERSON, OTHER THAN THE PARTIES OR A
PERMITTED SUCCESSOR OR ASSIGN THEREOF, IS ENTITLED TO RELY ON ANY
COVENANT OR AGREEMENT CONTAINED HEREIN.
SECTION 8.9 SEVERABILITY.
IF ANY TERM OR OTHER PROVISION OF THIS AGREEMENT IS INVALID, ILLEGAL OR
INCAPABLE OF BEING ENFORCED BY ANY RULE OF LAW OR PUBLIC POLICY, ALL
OTHER CONDITIONS AND PROVISIONS OF THIS AGREEMENT SHALL NEVERTHELESS
REMAIN IN FULL. FORCE AND EFFECT SO LONG AS THE ECONOMIC OR LEGAL
SUBSTANCE OF THE TRANSACTIONS CONTEMPLATED HEREBY IS NOT AFFECTED IN
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ANY ADVERSE MANNER TO ANY PARTY. UPON SUCH DETERMINATION THAT ANY TERM
OR OTHER PROVISION IS INVALID, ILLEGAL OR INCAPABLE OF BEING ENFORCED, THE
PARTIES HERETO SHALL NEGOTIATE IN GOOD FAITH TO MODIFY THIS AGREEMENT SO
AS TO EFFECT THE ORIGINAL INTENT OF THE PARTIES AS CLOSELY AS POSSIBLE IN
AN ACCEPTABLE MANNER TO THE END THAT THE TRANSACTIONS CONTEMPLATED
HEREBY ARE FULFILLED TO THE EXTENT POSSIBLE.
SECTION 8.10 INDEPENDENT CONTRACTOR" NO PARTNERSHIP.
OPERATOR SHALL PERFORM ITS DUTIES AND OBLIGATIONS HEREUNDER AS AN
INDEPENDENT CONTRACTOR, AND NOTHING CONTAINED HEREIN SHALL BE DEEMED
TO CREATE A RELATIONSHIP OF EMPLOYER/EMPLOYEE, MASTER/SERVANT,
AGENCY, PARTNERSHIP OR JOINT VENTURE. THIS AGREEMENT IS NOT INTENDED TO
CREATE, AND SHALL NOT BE CONSTRUED TO CREATE, A RELATIONSHIP OF
PARTNERSHIP OR AN ASSOCIATION FOR PROFIT BETWEEN OPERATOR AND OWNER.
SECTION 8.1 1 DATA PRACTICES ACT.
THE PARTIES ACKNOWLEDGE THAT HUTCHINSON IS SUBJECT TO MINNESOTA
GOVERNMENT DATA PRACTICES ACT, MINNESOTA STATUTES, CHAPTER 13 (THE
"ACT"), INCLUDING LIMITING PUBLIC ACCESS TO TRADE SECRET AND OTHER
PROTECTED DATA. EACH PARTY AGREES TO DEFEND, INDEMNIFY, AND HOLD
HARMLESS THE OTHER PARTY, ITS OFFICIALS, OFFICERS, AGENTS, EMPLOYEES,
CONTRACTORS, AND SUBCONTRACTORS FROM ANY CLAIMS RESULTING FROM
UNLAWFUL DISCLOSURE AND/OR USE OF SUCH PROTECTED DATA. HEARTLAND
CORN PRODUCTS AGREES TO PROMPTLY NOTIFY HUTCHINSON IF HEARTLAND
CORN PRODUCTS RECEIVES A REQUEST TO ACCESS THE TERMS OF THIS
AGREEMENT, AND TO COOPERATE WITH HUTCHINSON IF HUTCHINSON SEEKS A
PROTECTIVE ORDER, AT HUTCHINSON'S EXPENSE. HEARTLAND CORN PRODUCTS
AGREES TO PROMPTLY NOTIFY HUTCHINSON IF HEARTLAND CORN PRODUCTS
BECOMES AWARE OF ANY POTENTIAL CLAIM, OR FACTS GIVING RISE TO POTENTIAL
CLAIMS. THE TERMS OF THIS SECTION SHALL SURVIVE THE TERMINATION OF THIS
AGREEMENT.
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HUTCHINSON AGREES TO PROMPTLY NOTIFY HEARTLAND CORN PRODUCTS IF
HUTCHINSON RECEIVES A REQUEST TO ACCESS THE TERMS OF THIS AGREEMENT,
AND TO COOPERATE WITH HEARTLAND CORN PRODUCTS IF HEARTLAND CORN
PRODUCTS SEEKS A PROTECTIVE ORDER, AT HEARTLAND CORN PRODUCTS'
EXPENSE. HUTCHINSON AGREES TO PROMPTLY NOTIFY HEARTLAND CORN
PRODUCTS IF HUTCHINSON BECOMES AWARE OF ANY POTENTIAL, CLAIM, OR FACTS
GIVING RISE TO POTENTIAL, CLAIMS. THE TERMS OF THIS SECTION SHALL, SURVIVE
THE TERMINATION OF THIS AGREEMENT.
SECTION 8.12 NEWS RELEASES.
NEWS RELEASES CONCERNING THE OPERATIONS OR THE FACILITIES SHALL ONLY
BE MADE IN ACCORDANCE WITH THE FOLLOWING GUIDELINES, SUBJECT TO THE
REQUIREMENTS OF APPLICABLE LAWS AND GOVERNMENTAL RULES AND
REGULATIONS:
NO PUBLIC ANNOUNCEMENT OR STATEMENT SHALL BE ISSUED BY OPERATOR
UNLESS PRIOR TO ITS RELEASE OWNER HAS BEEN FURNISHED WITH A COPY OF
SUCH STATEMENT OR ANNOUNCEMENT AND THE REASONABLE APPROVAL OF THE
OWNER HAS BEEN OBTAINED. WHERE A PUBLIC ANNOUNCEMENT OR STATEMENT
BECOMES NECESSARY OR DESIRABLE BECAUSE OF AN EMERGENCY AS A RESULT OF
ACTIVITIES ARISING UNDER THIS AGREEMENT, OPERATOR IS AUTHORIZED TO ISSUE
AND MAKE SUCH ANNOUNCEMENTS OR STATEMENTS WITHOUT PRIOR REASONABLE
APPROVAL OF THE OWNER, BUT SHALL PROMPTLY FURNISH OWNER WITH A COPY
OF THE ANNOUNCEMENT OR STATEMENT.
SECTION 8.13 AUTHORITY TO ENTER AGREEMENT.
EACH PARTY TO THIS AGREEMENT REPRESENTS AND WARRANTS THAT IT HAS FULL
AND COMPLETE AUTHORITY TO ENTER INTO AND PERFORM THIS AGREEMENT. EACH
PERSON WHO EXECUTES THIS AGREEMENT ON BEHALF OF EITHER PARTY
REPRESENTS AND WARRANTS THAT IT HAS FULL AND COMPLETE AUTHORITY TO DO
SO AND THAT SUCH PARTY WILL BE BOUND THEREBY.
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SECTION 8. 1 4 ALTERNATIVE DISPUTE RESOLUTION.
WHENEVER THE PARTIES DISAGREE ON THE INTERPRETATION OR ENFORCEMENT OF
THIS AGREEMENT, OR UPON CALCULATIONS OR PAYMENTS, THEN UPON WRITTEN
REQUEST OF EITHER PARTY, REPRESENTATIVES WITH SETTLEMENT AUTHORITY FOR
EACH PARTY SHALL MEET IN PERSON AND CONFER IN GOOD FAITH TO RESOLVE THE
DISPUTE. IF THE PARTIES ARE UNABLE TO RESOLVE THE DISPUTE, THEY SHALL
SUBMIT THEIR DISPUTE TO MEDIATION PURSUANT TO THE MINNESOTA CIVIL.
MEDIATION ACT. IF THE DISPUTE IS NOT RESOLVED BY MEDIATION, THE PARTIES
MAY INVOKE THEIR LEGAL REMEDIES AVAILABLE AT LAW.
SECTION 8.15 OTHER DOCUMENTS.
THIS AGREEMENT, THE FIRM TRANSPORTATION CAPACITY AGREEMENT, AND THE
INTERCONNECT AGREEMENT BETWEEN THE PARTIES, SHALL BE CONSTRUED TO
GIVE EFFECT TO ALL PROVISIONS OF THE DOCUMENTS TO THE MAXIMUM EXTENT
POSSIBLE. IN THE EVENT OF A DIRECT AND IRRECONCILABLE CONFLICT BETWEEN
THE DOCUMENTS, THEY MUST BE CONSTRUED IN THE FOLLOWING ORDER OF
PRIORITY: (1) THE FIRM TRANSPORTATION CAPACITY AGREEMENT; (2) THE
INTERCONNECT AGREEMENT; (3) THIS AGREEMENT.
SECTION 8.16 COUNTERPARTS.
THIS AGREEMENT MAY BE EXECUTED IN COUNTERPARTS, AND EACH EXECUTED
COUNTERPART SHALL HAVE THE SAME FORCE AND EFFECT AS AN ORIGINAL.
INSTRUMENT.
ARTICLE IX LIABILITY; INDEMNITY
SECTION 9.1 INDEMNIFICATION BY OWNER.
OWNER SHALL DEFEND, PROTECT, INDEMNIFY, AND HOLD HARMLESS OPERATOR,
AND ITS MEMBERS, DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS FROM AND
AGAINST ALL LIABILITY, CLAIMS, LIENS, COSTS, EXPENSES, DEMANDS, FINES OR
OTHER ACTIONS IMPOSED BY ANY GOVERNMENTAL. AGENCY WITH JURISDICTION,
SUITS AND CAUSES OF ACTION OF EVERY KIND AND CHARACTER ARISING IN FAVOR
OPERATING AGR EEMENT 2 O
NATURAL GAS TRANS FACILITIES
HEARTLAND CORN PRODUCTS
JOHN WEBSTER
OF ANY THIRD PARTY ON ACCOUNT OF PERSONAL, INJURIES OR DEATH, OR DAMAGES
TO PROPERTY (INCLUDING WITHOUT LIMITATION CLAIMS FOR POLLUTION AND
ENVIRONMENTAL DAMAGE) IN ANY WAY DIRECTLY RESULTING FROM THE NEGLIGENT
ACTS OR OMISSIONS OF THE OWNER, ITS AGENTS, EMPLOYEES, REPRESENTATIVES,
OR CONTRACTORS, OR FROM THE FAILURE OF OWNER, ITS AGENTS, EMPLOYEES,
REPRESENTATIVES, OR CONTRACTORS TO PERFORM ITS OBLIGATIONS UNDER THIS
AGREEMENT AND IN COMPLIANCE WITH ALL APPLICABLE LAWS. THIS INDEMNITY
INCLUDES OWNER'S AGREEMENT TO PAY ALL COSTS OF DEFENSE, INCLUDING
WITHOUT LIMITATION ATTORNEYS' FEES, INCURRED BY ANY PERSON OR PARTY
INDEMNIFIED HEREIN.
OWNER ACKNOWLEDGES THAT UTILITY EQUIPMENT MALFUNCTION OR FAILURE MAY
OCCUR NOTWITHSTANDING THE INSPECTION, MAINTENANCE, AND REPAIR WORK
PERFORMED HEREUNDER, AND HEREBY INDEMNIFIES, RELEASES, AND HOLDS
OPERATOR HARMLESS FROM ANY CLAIM OR LIABILITY, AND ANY DIRECT OR INDIRECT
DAMAGES CLAIMED OR ACTUALLY SUFFERED (INCLUDING, WITHOUT LIMITATION,
CONSEQUENTIAL DAMAGES AND LOSS OF PROFITS), RESULTING FROM ANY UTILITY
EQUIPMENT MALFUNCTION OR FAILURE OCCURRING DURING THE TERM OF THIS
AGREEMENT, EXCEPT SUCH CLAIMS OR LIABILITY DIRECTLY RESULTING FROM THE
NEGLIGENT ACTS OR OMISSIONS OF OPERATOR.
SECTION 9.2 INDEMNIFICATION BY OPERATOR.
SUBJECT TO SECTION 2.1 (C), OPERATOR SHALL DEFEND, PROTECT, INDEMNIFY,
AND HOLD HARMLESS OWNER, AND ITS MEMBERS, DIRECTORS, OFFICERS,
EMPLOYEES AND AGENTS FROM AND AGAINST ALL LIABILITY, CLAIMS, LIENS, COSTS,
EXPENSES, DEMANDS, FINES OR OTHER ACTIONS IMPOSED BY ANY GOVERNMENTAL
AGENCY WITH JURISDICTION, SUITS AND CAUSES OF ACTION OF EVERY KIND AND
CHARACTER ARISING IN FAVOR OF ANY THIRD PARTY ON ACCOUNT OF PERSONAL
INJURIES OR DEATH, OR DAMAGES TO PROPERTY (INCLUDING WITHOUT LIMITATION
CLAIMS FOR POLLUTION AND ENVIRONMENTAL DAMAGE) IN ANY WAY DIRECTLY
RESULTING FROM THE NEGLIGENT ACTS OR OMISSIONS OF OPERATOR, ITS AGENTS,
EMPLOYEES, REPRESENTATIVES, OR CONTRACTORS, OR FROM THE FAILURE OF
OPERATOR, ITS AGENTS, EMPLOYEES, REPRESENTATIVES, OR CONTRACTORS TO
OPERATINGAGREEMENT 21
NATURAL GAS TRANS FACILITIES
HEARTLAND CORN PRODUCTS
JOHN WEBSTER
PERFORM ITS OBLIGATIONS UNDER THIS AGREEMENT AND IN COMPLIANCE WITH ALL
APPLICABLE LAWS. THIS INDEMNITY INCLUDES OPERATOR'S AGREEMENT TO PAY
ALL COSTS OF DEFENSE, INCLUDING WITHOUT LIMITATION ATTORNEYS' FEES,
INCURRED BY ANY PERSON OR PARTY INDEMNIFIED HEREIN.
OPERATOR AGREES THAT THE OBLIGATIONS OF INDEMNIFICATION HEREIN INCLUDE,
BUT ARE NOT LIMITED TO, LIENS BY THIRD PARTIES AGAINST OWNER AND ITS
PROPERTY BECAUSE OF LABOR, SERVICES, MATERIALS, OR ANY OTHER SUBJECT OF
LIEN, FURNISHED TO OPERATOR OR ITS ASSIGNEES OR SUBCONTRACTORS, IN
CONNECTION WITH ANY WORK PERFORMED BY OPERATOR HEREUNDER.
SECTION 9.3 NO CONSEQUENTIAL DAMAGES
UNDER NO CIRCUMSTANCES SHALL EITHER PARTY HERETO BE LIABLE TO THE
OTHER HEREUNDER FOR INDIRECT, SPECIAL, CONSEQUENTIAL OR SIMILAR
DAMAGES, OR FOR LOSS OF PROFITS.
OPERATINGAGREEMENT
NATURAL GAS TRANS FACILITIES 22
HEARTLAND CORN PRODUCTS
JOHN WEBSTER
WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT IN TWO (2)
DUPLICATE ORIGINALS BY THEIR DULY AUTHORIZED, RESPECTIVE OFFICERS,
EFFECTIVE AS OF THE DATE SPECIFIED ABOVE.
HUTCHINSON UTILITIES
COMMISSION
No
NAME:
TITLE: COMMISSION PRESIDENT
DATE:
WITNESS:
DATE:
WITNESS:
DATE:
OPERATING AGREEMENT
NATURAL GAS TRANS FACILITIES
HEARTLAND CORN PRODUCTS 23
JOH N WESSTER
HEARTLAND CORN PRODUCTS
BY:
NAME: 0 rv--, PA 1721
TITLE: C-.�=-®� o
DATE: I � - 0 � -
WITNES--r-,,
DATE'. c- z-
EXHIBIT "A"
THIS EXHIBIT "A" IS ATTACHED TO AND MADE PART OF THAT CERTAIN OPERATING
AGREEMENT - NATURAL, GAS TRANSMISSION FACILITIES (THE "AGREEMENT") BY
AND BETWEEN THE HEARTLAND CORN PRODUCTS ("OWNER") AND HUTCHINSON
UTILITIES COMMISSION ("OPERATOR").
OPERATOR'S PAYMENT INSTRUCTIONS:
FOR THE PURPOSE OF THIS AGREEMENT, OWNER SHALL MAKE ALL PAYMENTS
PROVIDED IN THE AGREEMENT TO OPERATOR VIA CHECK, OR ACH, TO THE
FOLLOWING:
HUTCHINSON UTILITIES COMMISSION
225 MICHIGAN ST SE
HUTCHINSON, MINNESOTA 55350
EXHIBIT "B"
THIS EXHIBIT "B" IS ATTACHED TO AND MADE PART OF THAT CERTAIN OPERATING
AGREEMENT - NATURAL, GAS TRANSMISSION FACILITIES (THE "AGREEMENT") BY
AND BETWEEN THE HEARTLAND CORN PRODUCTS ("OWNER") AND HUTCHINSON
UTILITIES COMMISSION ("OPERATOR").
OWNER HAS CONSTRUCTED (OR WILL CONSTRUCT) AND OWN THE NATURAL GAS
TRANSMISSION FACILITIES, INCLUDING ALL APPURTENANCES THERETO, ("FACILITY"
OR "FACILITIES") SERVING HEARTLAND CORN PRODUCTS IN THE FOLLOWING
DRAWING ATTACHED HERETO AND MADE A PART HEREOF.
EACH INTERCONNECTED THIRD PARTY NATURAL GAS PIPELINE SHALL OPERATE
THEIR RESPECTIVE MEASUREMENT STATION CONNECTING TO THE FACILITIES.
EXHIBIT "C"
THIS EXHIBIT "C" IS ATTACHED TO AND MADE PART OF THAT CERTAIN OPERATING
AGREEMENT - NATURAL, GAS TRANSMISSION FACILITIES (THE "AGREEMENT") BY
AND BETWEEN HEARTLAND CORN PRODUCTS ("OWNER") AND HUTCHINSON
UTILITIES COMMISSION ("OPERATOR").
ROUTINE WORK
TOTAL PRICE: $ 4,000.00 PER MONTH
COMPLETE LIST OF ROUTINE ITEMS:
A. MAINTENANCE, REPAIR AND SECURITY
1. PERFORM ALL DAY-TO-DAY OPERATIONS AND MAINTENANCE OF THE
FACILITIES
2. MAINTAIN, REPAIR AND TEST ALL VALVES
3. PERFORM CONTINUING SURVEILLANCE OF THE FACILITIES AND PROVIDE
VALVE SECURITY
4. MAINTAIN, REPAIR, AND TEST REGULATORS
5. MAINTAIN THE CLEANLINESS AND ENVIRONMENTAL SOUNDNESS OF THE
FACILITIES
C. MAKE MINOR MECHANICAL REPAIR REQUIRING NO REPLACEMENT OF PIPE,
APPURTENANCES, OR MECHANICAL PARTS
%. PERFORM PREVENTATIVE MAINTENANCE REQUIRING NO REPLACEMENT OF
PIPE, APPURTENANCES, OR MECHANICAL PARTS
8. RESPOND TO SERVICE CALLS, INCLUDING EMERGENCIES, DURING HUC
STANDARD WORK HOURS (6:30 AM TO 5:00 PM, MONDAY THROUGH
FRIDAY), EXCEPT TO THE EXTENT RESPONSE TO AN EMERGENCY REQUIRES
ADDITIONAL PERSONNEL THAT ARE NOT ON DUTY DURING SAID
EMERGENCY AND/OR ADDITIONAL OUTSIDE CONTRACTORS
B. LEGAL AND REGULATORY COMPLIANCE
1 . DOT REGULATORY AGENCY REPORTING
2. MAINTAIN DOT TRANSMISSION FACILITY RECORDS
3. MAINTAIN TRAINING & DOT OPERATOR QUALIFICATION RECORDS
4. MAINTAIN DRUG AND ALCOHOL COMPLIANCE PROGRAMS
5. PERFORM ALL REQUIRED DOT ANNUAL FUNCTIONS,
5. PROVIDE LINE LOCATING AND ONE CALL RESPONSE SERVICES, INCLUDING
DOCUMENTATION
C. MAINTAIN RIGHT-OF-WAY MARKERS AND SIGNS
%. PERFORM ALL DOT MANDATED INSPECTIONS AT REQUIRED FREQUENCIES
8. PREPARE ALL NECESSARY REPORTS RELATED TO FIELD OPERATIONS OF
THE FACILITIES FOR APPLICABLE GOVERNMENTAL. AUTHORITIES
9. REPORTING TO OWNER ANY NOTICES OF VIOLATIONS OF ANY LAWS OR
PERMIT PROVISIONS
10. DEVELOP ANY OTHER PLANS, REPORTS, AND OTHER DOCUMENTS AS MAY
BE REQUIRED BY ANY GOVERNMENTAL. AUTHORITY WITH JURISDICTION
OVER THE FACILITIES
11. OTHERWISE MAINTAIN THE FACILITIES' AND OPERATIONS' ONGOING
COMPLIANCE WITH ALL LAWS AND PERMITS
C. MONITORING AND TESTING
1. PERFORM ROUTINE METER TESTING AND CALIBRATION OF THE
INTERCONNECT STATION METER
2. PROVIDE CATHODIC PROTECTION MONITORING, MAINTENANCE,
DOCUMENTATION, AND RECORDKEEPING FOR THE FACILITIES
3. PERFORM ROUTINE FIELD LEVEL MONITORING OF TRANSMISSION SYSTEM
OPERATIONS
4. PERFORM INTERNAL. AND EXTERNAL. CORROSION INSPECTIONS
J. PERFORM WEEKLY/MONTHLY ODORIZATION MONITORING
C. PERFORM ATMOSPHERIC CORROSION SURVEYS
%. PERFORM ROUTINE PIPELINE PATROLS
8. CONTINUOUSL.Y MONITOR TRANSMISSION SYSTEM PRESSURES AND
FLOWS IN REAL-TIME
9. TEST OVERPRESSURE PROTECTION EQUIPMENT
10. MAINTAIN PROPER DOCUMENTATION ON ALL INSPECTIONS, TESTS AND
CALIBRATIONS
D. COMMUNITY RELATIONS
1 . ACT AS PUBLIC LIAISON WITH APPROPRIATE EMERGENCY RESPONDERS
AND PUBLIC OFFICIALS
2. TAKE OTHER SUCH MEASURES AS ARE REASONABLY NECESSARY TO
CULTIVATE AND MAINTAIN GOOD PUBLIC RELATIONS WITH MEMBERS OF
THE HEARTLAND CORN PRODUCTS AND EDUCATE THE PUBLIC SO AS TO
INCREASE AWARENESS OF THE FACILITIES AND THE DANGERS
ASSOCIATED THEREWITH
E. OTHER
1 . MAINTAIN IN FORCE AND EFFECT, AND REQUIRE ALL CONTRACTORS (AND
THEIR SUBCONTRACTORS) PERFORMING SERVICES FOR THE BENEFIT OF
OWNER TO MAINTAIN IN FORCE AND EFFECT, INSURANCE OF THE TYPES
AND IN THE AMOUNTS SPECIFIED BY OWNER.
2. UNDERTAKE ALL REASONABLE EFFORTS TO KEEP THE FACILITIES, ALL
CONTRACTS RELATING TO THE OPERATIONS, AND ALL PROPERTY AND
RIGHTS OF OWNER FREE AND CLEAR OF ANY AND ALL LIENS,
ENCUMBRANCES, SECURITY INTERESTS, CHARGES, CLAIMS AND
RESTRICTIONS ARISING OUT OF OR ON ACCOUNT OF THE OPERATIONS
3. MAINTAIN 24-HOUR EMERGENCY TELEPHONE NUMBER
4. PROCURE AND FURNISH ALL MATERIALS, EQUIPMENT, SERVICES,
SUPPLIES, LABOR AND SUPERVISION NECESSARY TO CARRY OUT
OPERATOR'S RESPONSIBILITIES UNDER THIS AGREEMENT.
EXHIBIT "D"
THIS EXHIBIT "D" IS ATTACHED TO AND MADE PART OF THAT CERTAIN OPERATING
AGREEMENT - NATURAL, GAS TRANSMISSION FACILITIES (THE "AGREEMENT") BY
AND BETWEEN HEARTLAND CORN PRODUCTS ("OWNER") AND HUTCHINSON
UTILITIES COMMISSION ("OPERATOR").
NON -ROUTINE WORK
ALL NON -ROUTINE WORK PERFORMED AT: COST + 1 5%
EXAMPLE OF NON -ROUTINE ITEMS:
1. PAINTING
2. DEPTH OF COVER SURVEYS
3. ASSOCIATED LINE BLOW DOWNS & PURGING
4. RETIREMENT OF FACILITIES
5. LINE RELOCATIONS
C. PERFORM AERIAL TRANSMISSION LEAKAGE SURVEYS
7. ENGINEERING STUDIES (AS REQUIRED)
8. REPLACEMENT OF CATHODIC PROTECTION FACILITIES
9. MEASUREMENT AND TRANSMISSION FACILITY MATERIALS
10. AFTER-HOURS, HOLIDAYS, AND WEEKEND EMERGENCY RESPONSE
1 1 . AFTER - HOURS, HOLIDAYS, AND WEEKEND EMERGENCY LOCATING OF
NATURAL GAS FACILITIES
12. ADDITIONAL PERSONNEL AS MAY BE REQUIRED DURING EMERGENCIES
13. ADDITIONAL CONTRACTORS AS MAY BE REQUIRED DURING EMERGENCIES
14. FEES FOR PUBLIC AWARENESS PROGRAM MATERIALS
15. FEES ASSOCIATED WITH COMMUNITY AWARENESS EMERGENCY
RESPONSE PROGRAM
16. DEVELOP AND MAINTAIN EMERGENCY RESPONSE PLAN, OPERATION &
MAINTENANCE MANUAL, OPERATOR QUALIFICATION PLAN, PUBLIC
AWARENESS PROGRAM, CONTROL ROOM MANAGEMENT PLAN, AND
TRANSMISSION INTEGRITY MANAGEMENT PROGRAMS, INCLUDING
ANNUAL UPDATES. ALSO INCLUDES DEVELOPING ADDITIONAL PROGRAMS
AND PLANS AS REQUIRED BY THE DOT/PHMSA.
17. MAINTAIN MEMBERSHIP IN GOPHER STATE ONE -CALL PROGRAM AND ANY
OTHER APPLICABLE LOCAL ONE -CALL PROGRAM
EXHIBIT "D", CONTINUED
18. FACILITATE ANNUAL, DAMAGE PREVENTION TRAINING MEETING FOR
EXCAVATION CONTRACTORS
19. DEVELOP AND IMPLEMENT COMMUNITY AWARENESS PROGRAMS,
INCLUDING, BUT NOT LIMITED TO, MEMBERSHIP IN MINNESOTA
COMMUNITY AWARENESS EMERGENCY RESPONSE PROGRAM
20. ANY AND ALL OTHER ITEMS RELEVANT TO TRANSMISSION FACILITY
OPERATION AND MAINTENANCE THAT ARE NEITHER LISTED ABOVE
OR INCLUDED IN THE ATTACHED EXHIBIT C.
* "EXPENSE", AS REFERENCED ABOVE, SHALL BE THE COST OF MATERIALS,
EQUIPMENT AND THIRD PARTY LABOR TO COMPLETE THE APPLICABLE WORK OR
PROJECT. OPERATOR SHALL INVOICE SUCH COST PLUS 15%. IN ADDITION,
THERETO, OPERATOR SHALL CHARGE $63.00 PER MAN-HOUR. ALL VEHICLES
AND EQUIPMENT SHALL BE CHARGED BY THE AMOUNT REFLECTED IN THE
FOLLOWING TABLE. LABOR RATES ARE SUBJECT TO CHANGE ON AN ANNUAL
BASIS.
EQUIPMENT RATES PER HOUR
AIR COMPRESSOR $42.00
BACKHOE $80.00
VACTRON $70.00
VEHICLE $47.00
OPERATOR $63.00
HUTCHINSON UTILITIES COMMISSION��`
Board Action Form
�r�turscti
mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm
Agenda Item: Replace 2010 Dodge Dakota
Presenter: Dave Hunstad
Agenda Item Type:
Time Requested (Minutes): 5
New Business
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
As part of the Fleet Management Program the 2010 Dodge Dakota is due for
replacement.
The original budget is for $35,000.00 to replace with another smaller truck, however they
are not available on the State Contract.
We are recommending a 2024 F-150 from the Minnesota State Contract #169665 for
$44,500.92. This will result in a $9,500.92 increase to the budget.
Attachments:
Midway Ford Quote
Req. 9733
BOARD ACTION REQUESTED:
Approve Req# 9733
Fiscal Impact: $44,500.92
Included in current budget: Yes Budget Change: Yes
PROJECT SECTION:
Total Project Cost: Remaining Cost:
HUTCHINSON
UTILITIES
ra,�itiaa° oni'initIIIEwasrioI'll
MIDWAY FORD COMMERCIAL
2777 N SNELLING AVE
ROSEVILLE, MN 55113
Note
Description:
2024 F150 FTM8 State Contract 169665
PURCHASE REQUISITION
HUTCHINSON UTILITIES COMMISSION
225 MICHIGAN ST SE
HUTCHINSON, MN 55350
Phone:320-587-4746 Fax:320-587-4721
Date
Requisition No.
11 /08/2023
009733
Required by:
Requested by:
dhunstad
Item
No.
Part No.
Description
Qty
Unit
Due Date
Unit Price
Ext. Amount
2024 F150 FTM8 STATE CONTRACT 169665 -
MFG. PART:
1
1.00
EA
$41,656.570
$41,656.57
Total:
41,656.57
Tax:
2,844.35
Total:
44,500.92
Date Printed: 11/08/2023 Requisitioned By: dhunstad Page: 1/1
Midway Ford Commercial
Fleet and Government Sales
2777 N. Snelling Ave.
Roseville MN 55113
FTM8 Contract # 169665
2024 F-150 4X4- Super Cab- 6.5' Box X1 L
Automatic Transmission
Air Conditioning
AM/FM Radio
Matching Full Size Spare Tire
Sync
Cruise Control
40/20/40 Vinyl Seat
Dual Front Air Bags
4-Wheel ABS Brakes
Tilt Wheel
Power Windows
Travis Swanson
651-343-5212
tswansonp_rosevillemidwayford.com
2.7L Ecoboost V6
Rubber Floor Covering
Bumpers w/Rear Step
Rear View Camera
Power Locks
Options
Code Price
Select
Exterior Colors
Code
Select
Tow Hual Package
53T
$715
X
Blue Jeans Metallic
N1
Platform Running Boards
18B
$228
X
Race Red
PQ
Stone Gray Metallic
LQ
Shadow Black
G1
Magnetic Metallic
J7
Ingot Silver Metallic
UX
Oxford White
YZ
X
Extended Service Contracts
Cost
Select
7 year/75,000 mile
PremiumCare Warranty
(Bumper to Bumper)
$3,200
Option Total
$943
You must have a active FIN code to participate in this
purchase contract : FIN code # 1
Purchase Order required prior to order placement
PO #
Hutchinson Utilities Commission
Base Price Totals
Options Price Totals
Extended Warranty
Transit Impr Excise Tax
Tax Exempt Lic
6.875% Sales Tax
Document fee
Sub total per vehicle
Number of Vehicles
$40,429.32
$943.00
$20.00
$64.25
$2,844.35
$200.00
$44,500.92
1
Name of Organization
225 Michigan St SE
Address
Hutchinson MN 55350
Grand Total for all units
$44,500.92
City, State, Zip
Dave Hunstad
Acceptance Signature
Contact Person/ Phone #
ldhunstadp_hutchinsonmn.gov
Print Name and Title Date Contact's e-mail address and fax #
HUTCHINSON UTILITIES COMMISSION��`
Board Action Form
�r�turscti
mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm
Agenda Item: Replace 2012 Dodge Ram
Presenter: Dave Hunstad
Agenda Item Type:
Time Requested (Minutes): 5
New Business
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
As part of the Fleet Management Program the 2012 Dodge Ram is due for replacement.
We are recommending a 2024 F-250 FTM24 from the Minnesota State Contract
#169665.
We have $55,000.00 budgeted for 2023 and the State Contract price is $49,784.09.
Attachments:
Midway Ford Quote
Req. 9734
BOARD ACTION REQUESTED:
Approve Req# 9734
Fiscal Impact: $49,784.09
Included in current budget: Yes Budget Change: No
PROJECT SECTION:
Total Project Cost: Remaining Cost:
HUTCHINSON
UTILITIES
ra,�itiaa° oni'initIIIEwasrioI'll
MIDWAY FORD COMMERCIAL
2777 N SNELLING AVE
ROSEVILLE, MN 55113
Note
Description:
Ford F250 FRM24 State Contract 169665
PURCHASE REQUISITION
HUTCHINSON UTILITIES COMMISSION
225 MICHIGAN ST SE
HUTCHINSON, MN 55350
Phone:320-587-4746 Fax:320-587-4721
Date
Requisition No.
11 /08/2023
009734
Required by:
Requested by:
dhunstad
Item
No.
Part No.
Description
Qty
Unit
Due Date
Unit Price
Ext. Amount
FORD F250 FRM24 STATE CONTRACT 169665
- MFG. PART:
1
1.00
EA
$46,599.890
$46,599.89
Total:
46,599.89
Tax:
3,184.20
Total:
49,784.09
Date Printed: 11/08/2023 Requisitioned By: dhunstad Page: 1/1
Midway Ford Commercial
Fleet and Government Sales
2777 N. Snelling Ave.
Roseville MN 55113
FTM24 Contract # 169665
2024 F250 4X4- Super Cab- 8' Box
Automatic Transmission
Dual Front Air Bags
AM/FM Radio
Tow Hitch
Tilt Wheel
Sync
Power Windows
40/20/40 Vinyl Front Seat
Standard Base Upholstery
4-Wheel ABS Brakes
Air Conditioning
LT245/75r17 E All Season Tires
Cruise Control
Power Locks
Travis Swanson
651-343-5212
tswansonp_rosevillemidwayford.com
Front Tow Hooks
Rubber Floor Covering
Black Bumpers w/Rear Step
Matching Full Size Spare Tire
6.8L V8
Rear View Camera
Brake Controller
Options Code Price Select
Exterior Colors
Code
Select
Platform Running Boards
18B
$405
X
Antimatter Blue Metallic
HX
Race Red
PQ
Stone Gray Metallic
D1
Agate Black
UM
Carbonized Gray Metallic
M7
Iconic Silver Metallic
JS
Oxford White
Z1
X
Extended Service Contracts
Cost
Select
7 year/75,000 mile
PremiumCare Warranty
(Bumper to Bumper)
$3,400
Option Total
You must have a active FIN code to participate in this
purchase contract : FIN code # 1
Purchase Order required prior to order placement
PO #
Hutchinson Utilities Commission
Base Price Totals
$45,910.64
Options Price Totals $405.00
Extended Warranty
Transit Impr Excise Tax $20.00
Tax Exempt Lic $64.25
6.5% Sales Tax $3,184.20
Document fee $200.00
Sub total per vehicle $49,784.09
Number of Vehicles 1
Name of Organization
225 Michigan St SE
Address
Hutchinson Minnesota 55350
Grand Total for all units
$49,784.09
City, State, Zip
Dave Hunstad
Acceptance Signature
Contact Person/ Phone #
ldhunstadp_hutchinsonmn.gov
Print Name and Title Date Contact's e-mail address and fax #
HUTCHINSON UTILITIES COMMISSION��`
Board Action Form
�r�turscti
mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm
Agenda Item: City of Hutchinson LED St Light Conversion
Presenter: Dave
Agenda Item Type:
Time Requested (Minutes): 5
New Business
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
During our 2021 Strategic Planning process Hutchinson Utilities Commission agreed to
fund materials and labor for the City of Hutchinson's LED St Light conversion project.
We plan to convert an overage of 220 lights per year.
Hutchinson St Light count:
Total Lights = 2,022
Total Converted to LED = 980
Total Remaining = 1042
The purchase order is for the third year of LED fixtures that are scheduled for delivery in
February.
This project is part of our 2024 Capital budget and we will not be invoiced for them until
we receive them in 2024.
BOARD ACTION REQUESTED:
Approve Req 9735
Fiscal Impact: $173,171.92
Included in current budget: Yes Budget Change: No
PROJECT SECTION:
Total Project Cost: Remaining Cost:
HUTCHINSON
UTILITIES
ra,�itiaa° oni'initIIIEwasrioI'll
Note
PURCHASE REQUISITION
HUTCHINSON UTILITIES COMMISSION
225 MICHIGAN ST SE
HUTCHINSON, MN 55350
Phone:320-587-4746 Fax:320-587-4721
BORDER STATES ELECTRIC SUPPLY
PO BOX 1450
NW 7235
MINNEAPOLIS, MN 55485
Description:
LED Fixtures Conversion
Date
Requisition No.
11 /09/2023
009735
Required by:
Requested by:
dhunstad
Item
No.
part No.
Description
Qty
Unit
Due Date
Unit Price
Ext. Amount
GVD3P3030KMVOLTMSGL3 GRANVILLE III
MFG.
1
PART:
230.00
EA
$714.290
$164,286.70
DLL127 1.5 J50 PHOTO EYE -
MFG. PART:
2
220.00
EA
$22.220
$4,888.40
Total:
169,175.10
Tax:
11,139.72
Total:
$173,171.92
Date Printed: 11/09/2023 Requisitioned By: dhunstad Page: 1/1
BORDER
STATES
Border States Electric - ABV
11927 53rd Street NE
Albertville MN 55301-3964
Phone: 763-497-6800
HUTCHINSON UTILITIES COMMISSION
225 MICHIGAN ST SE
HUTCHINSON MN 55350-1905
Quote
Page: 1 of 1
BSE Quote: 27266962
Sold -To Acct #: 5004
Valid From: 10/30/2023 To: 11/06/2023
Payment Terms: Net 25th prox
Created By:.larid Schmidt
Tel No: 763-497-6816
Fax No:
Inco Terms:
PPA PREPAID & ALLOW FREIGHT
Ship -to:
HUTCHINSON UTILITIES COMMISSION
225 MICHIGAN ST SE
HUTCHINSON MN 55350-1905
Cust Item BSE Item Material Quantity Price Per UoM Value
MFG - Description
000010 220 EA 714.29 / 1 EA 157,143.80
- GVD3P3030KMVOLTMSGL3 - Granville III LED
Estimated Lead Time: 30 days
000020 220 EA 22.22 / 1 EA 4,888.40
- DLL127 1.5 J50 - Photo Eye
Estimated Lead Time: 30 days
Total $
162,032.20
State Tax $
6.875 % 1 1
,139.72
County Tax $
0.000 %
0.00
Local Tax $
0.000 %
0.00
Other Tax1 $
0.000 %
0.00
Other Tax2 $
0.000 %
0.00
Other Tax3 $
0.000 %
0.00
Tax Subtotal $
6.875 %
11,139.72
Net Amount $
173,171.92
To access BSE's Terms and Conditions of Sale, please go to
https://www.borderstateselectric.com
The quoted sales tax is an estimate only based upon the information
provided in this quote and will be finalized at the time of Invoice
based upon the material purchased, quantity purchased, and delivery
location.
Shipping and handling fees in this quote are an estimate only and will
be finalized at the time of Invoice.
All clerical errors contained herein are subject to correction. In the event of any cost or price
increases from manufacturers or other suppliers, caused by, but not limited to, currency fluctuations,
raw material or labor prices, fuel or transportation cost increases, and any import tariffs, taxes,
fees, or surcharges, BSE reserves the exclusive right to change its pricing at the time of shipping
and will provide notice of any such change to its customers prior to costs being incurred.