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11-23-2022 HUCCPHUTCHINSON UTILITIES COMMISSION AGENDA REGULAR MEETING November 23, 2022 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. Investment Policy v. Purchasing Policy/Credit Cards/Fixed Assets vi. Service Beyond City Limits of Hutchinson vii. Surplus Property Policy b. Approve Changes i. Payments of HUC Payables 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. Approve Req#009373 - Re -Working of Cooling Tower Piping Plant 1 for Engine Removal d. Approve Requisition #009374 — WSB 2023 Regulatory Program Updates e. Discussion/Approval of Rescheduling the December 28, 2022 Regular Commission Meeting if needed f. Discussion of reappointment of Matthew Cheney 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 26, 2022 Call to order — 3:00 p.m. President Matt Cheney called the meeting to order. Members present: President Matt Cheney; Vice President Anthony Hanson; Secretary Don Martinez; GM Jeremy Carter; Attorney Marc Sebora Absent: Commissioner Robert Wendorff; Commissioner Kathy Silvernale Conflict of Interest 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Hanson, second by Commissioner Martinez to Approve the Consent Agenda. Motion carried unanimously. 3. Approve Financial Statements GM Carter presented the financial statements. GM Carter provided more in-depth background on particular items on the Electric Division. Salary and Benefits are trending higher than in past years due to not capitalizing as much labor; Staff has been working on more operational maintenance due to COVID lockdown rather than Capital Work Order maintenance. This is still anticipated for 2023. Purchase Power YTD is down about 4%, Sept to Sept was down 11 % due to 3M being shut down 2 full days over the Labor Day weekend. This will also be noticed in the Gas Division. Generator Fuel costs are up significantly but is also offset by Sales for Resale. GM Carter reviewed the Hedging Program and stated that earlier in the year, HUC ran units to complete the RATA/Emissions permitting testing that needed to be completed along with increase gas costs for the Pigging Project. These costs are not typical yearly costs. GM Carter reviewed the increase in Operating Costs which included: $100K repairing of the substations, $14K increase in CIP rebates, $53K equipment/ materials out of inventory for Unit 1, $28K for MMUA dues that is typically paid quarterly but was paid at the beginning of the year, $53K Elevator repairs for State Compliance, $30K in Nozzle cleanings and repairs, and $48K RATA Testing/HDR outside services. GM Carter reviewed inventory costs and long lead times. Discussion was held on the Hedging Program and Power Cost Adjustment. GM Carter noted that Gas Division overall is trending well. Mr. Martig noted that the estimate for GRE Transmission was short, actual came in at $40K higher which results in a $10K loss rather than a $30K profit for Sept. Motion by Commissioner Martinez second by Commissioner Hanson to Approve the Financial Statements. Motion carried unanimously. 4. Open Forum 5. Communication a. City Administrator —Matthew Jaunich — 1. Election in 2 weeks b. Divisions i. Dan Lang, Engineering Services Manager — Nothing to report ii. Dave Hunstad, Electric Transmission/Distribution Manager — 1. Received EV charger; looking to install NW corner of Civic Arena and Rec Center iii. Mike Gabrielson, Production Manager — 1. Unit 1 RFP is out for vendors to review 2. Next week Caterpillar staff from Germany will be on site to do warranty work on Unit 6. Week later the oil consumption test will be completed; still part of the retainer iv. John Webster, Natural Gas Division Director — 1. Provided an update on the Pigging Project. TD Williamson provided the final reports which showed there are no anomalous issues but Staff will need to dig 3 spots, blast off the coating and inspect the pipe. Looking to have this completed in November/ December of this year v. Jared Martig, Financial Manager — 1. MRES update. Next year will be going to time of use rates. Starting in 2024-2027 anticipating a 2.7% increase annually over the next 4 years 2. MRES maybe in need of capacity and are looking to partner with member utilities for generation installation c. Human Resources —Angie Radke —Nothing to Report d. Legal — Marc Sebora — Nothing to report e. General Manager — Jeremy Carter i. Starting Legislative meetings with the ramp -up of elections ii. Continuing to work on CIP and Budgets 6. Policies a. Review Policies i. Electric - Rate Schedule ii. Security Light Rental — Rate to Furnish and Maintain Fixture iii. Electric Service Requirements & Charges iv. Temporary Service- Electric v. Temporary Service in Case of Underground Failure vi. Electric Meter Placement vii. Sealing of Meters — Electric viii. Meter Testing - Electric ix. Right -of -Way Clearing 2 x. Tree Removal of Trimming xi. Locating Customer's Underground Utilities — Electric xii. Natural Gas — Rate Schedule xiii. Natural Gas Service Requirements & Charges xiv. Temporary Service — Natural Gas xv. Natural Gas Meter Requirements & Placement xvi. Meter Testing — Natural Gas xvii. Natural Gas Service Work xviii. Locating Customer's Underground Utilities — Natural Gas No changes recommended at this time. b. Approve Changes i. Disconnection of Residential Services by HUC ii. Disconnection of Commercial Services by HUC Mr. Martig spoke of the changes to the Disconnection of Residential and Commercial Services by HUC Policies to now include if no tenant occupies property. Along with property cannot be disconnected or refused if the Tenant pays current month on account in landlord's name. Motion by Commissioner Hanson, second by Commissioner Martinez to Approve the Policy Changes. Motion carried unanimously. 7. Unfinished Business 8. New Business a. Approve Rollover of Northern Natural Gas Transportation Contract No. 21279 Mr. Webster presented Approval of Rollover of Northern Natural Gas Transportation Contract No. 21279. HUC maintains 100 Dth/day of capacity on the Northern Natural Gas Company (NNG) transmission system. Maintaining capacity on the NNG system provides a secondary supply of natural gas to the City of Hutchinson in the event of a catastrophic failure to the Hutchinson Utilities' natural gas transmission line. Fiscal impact is $14K. Motion by Commissioner Martinez, second by Commissioner Hanson to Approve Rollover of Northern Natural Gas Transportation Contract No. 21279. Motion carried unanimously. b. Approve 2022 Audit Services with Conway Deuth & Schmiesing Mr. Martig presented Approval of 2022 Audit Services with Conway Deuth & Schmiesing. For fiscal year 2022, Audit Services have increased over $25K which now require the approval of the Commission. Mr. Martig provided a 10-year history for review. Motion by Commissioner Hanson, second by Commissioner Martinez to Approve 2022 Audit Services with Conway Deuth & Schmiesing. Motion carried unanimously. 3 c. Approve Digger Derrick Repair Mr. Hunstad presented Approval of Digger Derrick Repair. HUC's 1999 Digger Derrick Truck has a turntable wench assembly that has failed. The winch is not repairable and needs to be replaced with a new assembly. The truck is in the 2023 budget for replacement, however delivery of a new truck will be in 2024-2025 therefore the existing truck will need to be fixed which will also help with resale value. Motion by Commissioner Martinez, second by Commissioner Hanson to Approve Digger Derrick Repair. Motion carried unanimously. d. Approve Req#009358 — Design of HCP Interconnect. Mr. Webster presented Approval of Req#009358 — Design of HCP Interconnect. Mr. Webster has been working with Heartland Corn Products (HCP) to transport natural gas directly to HCP which will require an interconnect station to be designed, permitted and constructed. The location has somewhat been pinned down and HCP is securing easements. HCP's intention is to begin transporting natural gas on Hutchinson's pipeline as of October 1,2023. Will be working with WSB for the design of the station. Discussion was held on the legal paperwork that should be received stating that HCP will pay HUC reimbursement of costs along with expectations of reimbursement. Motion by Commissioner Hanson, second by Commissioner Martinez to Approve Req#009358 — Design of HCP Interconnect and any necessary legal paper work to tie out. Motion carried unanimously. e. Discussion/Approval of Rescheduling the November 30, 2022 and December 28,2022 Regular Commission Meetings if needed. Ms. Radke will send an email out to all Commissioners regarding the November Regular scheduled meeting to see if a reschedule will be needed. 9. Adjourn There being no further business, a motion by Commissioner Martinez, second by Commissioner Hanson to adjourn the meeting at 3:48p.m. Motion carried unanimously. ATTEST: Matt Cheney, President 12 Don Martinez, Secretary MINUTES Special Meeting — Hutchinson Utilities Commission Thursday, October 20, 2022 Call to order — 7:38 a.m. President Matt Cheney called the meeting to order. Members present: President Matt Cheney; Vice President Anthony Hanson; Secretary Don Martinez; Commissioner Robert Wendor f; Commissioner Kathy Silvernale; GM Jeremy Carter; Attorney Marc Sebora Others Present: Mike Gabrielson, Angie Radke The purpose of the special meeting is to Approve RFP and Advertisement for Bid — Unit 1 Oil Leak Repair and Depot Service. Mr. Gabrielson recapped discussions that were held at previous meetings regarding Unit 1 LM6000. There is a concern of the amount of oil that is leaking which is currently averaging .66/Gal/Hr and could overrun the drain lines ability to keep the auxiliary gear box evacuated. If it gets beyond this, oil will start to back up into the gearbox eventually washing over the bearings which will cause additional errors. Once oil leak reaches 1/Gal/Hr the unit needs to be shut down. Many troubleshooting steps were completed that consisted of replacing the L/S pump, starter clutch, and the oil/air separator filters. However, the issues could not be rectified. Mr. Gabrielson reviewed the RFP for scope of work to repair the LM6000 and address any service bulletins that can only be done when the unit is out of service. GM Carter noted with a project of this size, Staff needs to go out and publicly bid. The Advertisement for Bid would be in the newspaper next week with Bid opening on Monday, Nov 21, 2022. Staff will review the bids, look to the Commission to award the bid and then have the Commission approve the contract before the work can start. The RFP has an aggressive timeline. Staff is looking to pull out the Unit in December and having it back by March 1, 2023. Staff would like to have the Unit back before Spring. Mr. Lang has notified MISO about the Unit being out of service. GM Carter stated Staff will be utilizing the downtown plant for the Dynasty Power contract along with market purchases and continue to hedge against the market for retail customers when the units are available. GM Carter reviewed the extended warranty. Discussion was held on the timeframe and evaluating exceptions the contractors may have. Motion by Commissioner Martinez, second by Commissioner Hanson to Approve RFP and Advertisement for Bid — Unit 1 Oil Leak Repair and Depot Service. Motion carried unanimously. There being no further business, a motion by Commissioner Martinez, second by Commissioner Silvernale to adjourn the meeting at 7:54a.m. Motion carried unanimously. Don Martinez, Secretary ATTEST: Matt Cheney, President 11/17/2022 10:26 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 1/22 User: JMartig CHECK DATE FROM 10/22/2022 - 11/20/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 1 ELECTRIC 10/25/2022 GEN 1225(E) MISO Accounts Payable - Miso 232-000- 00 664.14 10/26/2022 GEN 1231(E)I ALERUS HEALTH INSURANCE 401-926- 08 393.00 11/01/2022 GEN 1232(E)4 ALERUS HEALTH INSURANCE - GLESENER 401-546- 01 245. 96 HEALTH INSURANCE - MASON 401-556- 03 65.87 HEALTH INSURANCE - MERKINS 401-556- 03 438.08 HECK GEN 1232(E) TOTAL FOR FUND 1: 749.91 11/01/2022 GEN 77647*4 ACE HARDWARE Supplies 401-550- 01 5.60 Supplies 401-550- 01 29.87 HECK GEN 77647 TOTAL FOR FUND 1: 35.47 11/01/2022 GEN 77648* ADAM BRODERIUS DEP REFUND/APPLIED 235-000- 00 48.75 11/01/2022 GEN 77649* ADAM SWITZER DEP REFUND/APPLIED 235-000- 00 71.50 11/01/2022 GEN 776504 AERODERIVATIVE GAS TURBINE CLUTCH, OVER -RUNNING, P/N 6601-01-019-C 154-000- 00 7, 850.00 FREIGHT 401-588- 02 158.09 HECK GEN 77650 TOTAL FOR FUND 1: 8,008.09 11/01/2022 GEN 77651* ALLEN ERBES OR KALEI WILSON DEP REFUND/APPLIED 235-000- 00 195.00 11/01/2022 GEN 77652 AMBER BUTCHER OVERPAYMENTS 142-000- 00 97.01 11/01/2022 GEN 77653* ANDREA STEFFEN DEP REFUND/APPLIED 235-000- 00 48.75 11/01/2022 GEN 77655* BG JEWELERS DEP REFUND/APPLIED 235-000- 00 312.00 11/01/2022 GEN 77656* BIANCA GARCIA DEP REFUND/APPLIED 235-000- 00 48.75 11/01/2022 GEN 77657* BLAKE GRIFFIN OR TIFFANY HARCOURT DEP REFUND/APPLIED 235-000- 00 195.00 11/17/2022 10:26 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 2/22 User: JMartig CHECK DATE FROM 10/22/2022 - 11/20/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 1 ELECTRIC 11/01/2022 GEN 77658*4 BORDER STATES ELECTRIC SUPPLY BUSHING, WELL INSERT, FEED THRU 200A 154-000- 00 137.47 ASSEMBLY, LED, ACORN, GRANVILLE II, 154-000- 00 5,796.70 GLOBE, ACORN, WITHOUT CUT-OFF, 154-000- 00 3,241.80 FLOOD SEAL, COVERS (LONG) FSS 350L 154-000- 00 452.40 SPLICE, 44 TO 44 AL/CU YSU 2W-2W 154-000- 00 5.30 TAPE, 33+SUPER-1-1/2X36YD 154-000- 00 89.75 SPLIT BOLT 1/0 KS25 BURNDY 154-000- 00 118.00 INHIBITOR, OXIDE, DE-OX, 8 OR, ILSCO 154-000- 00 91.60 CONDUCTOR, 41/0 BARE CU STRANDED 154-000- 00 2,231.00 Sales Tax Receivable - New 186-000- 00 9.45 Sales Tax Receivable - New 186-000- 00 621.39 Sales Tax Receivable - New 186-000- 00 31.10 Sales Tax Receivable - New 186-000- 00 6.53 Sales Tax Receivable - New 186-000- 00 167.79 HECK GEN 77658 TOTAL FOR FUND 1: 13,000.28 11/01/2022 GEN 77659* BRADY STOVERN DEP REFUND/APPLIED 235-000- 00 32.50 11/01/2022 GEN 77660* BRETT BRANDVOLD OR TORI RIGGLEMAN DEP REFUND/APPLIED 235-000- 00 97.50 11/01/2022 GEN 77661 BURICH, JACOB Cip - Residential 401-916- 07 25.00 11/01/2022 GEN 77663 CARBON DAY AUTOMOTIVE CPE250-Dual Cord DC 62.5KW Combo 107-394- 00 51,019.00 Sales Tax Receivable - Replace 186-000- 00 3,507.56 HECK GEN 77663 TOTAL FOR FUND 1: 54,526.56 11/01/2022 GEN 77664 CARLY'S SHOE STORE Uniforms & Laundry 401-588- 02 203.99 11/01/2022 GEN 77665* CAROL PAUTSCH DEP REFUND/APPLIED 235-000- 00 234.00 11/01/2022 GEN 776664 CENTRAL HYDRAULICS O-RING, MEMBRANE INTERCONNECT 154-000- 00 21.00 Sales Tax Receivable - Replace 186-000- 00 2.38 Supplies 401-550- 01 98.77 FREIGHT 401-588- 02 13.61 11/17/2022 10:26 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM 10/22/2022 - 11/20/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Fund: 1 ELECTRIC HECK GEN 77666 TOTAL FOR FUND 1: 11/01/2022 GEN 77667* CHRISTOPHER OLESON OR ISAAC SLYTER DEP REFUND/APPLIED 235-000- 00 11/01/2022 GEN 77668*4 CINTAS CORPORATION 4470 Uniforms & Laundry 401-550- 01 UNIFORMS & LAUNDRY 401-588- 02 HECK GEN 77668 TOTAL FOR FUND 1: 11/01/2022 GEN 77670* DALE BUBOLTZ DEP REFUND/APPLIED 235-000- 00 11/01/2022 GEN 77671* DEB OR BRIAN LENZ DEP REFUND/APPLIED 235-000- 00 11/01/2022 GEN 77672 DGR ENGINEERING Plant 41 Relay and RTU Upgrades 107-362- 00 Station Equipment (Switchgear, 107-362- 00 HECK GEN 77672 TOTAL FOR FUND 1: 11/01/2022 GEN 77673 DITCH WITCH OF MN Power Equipment - Materials 402-598- 02 11/01/2022 GEN 77674* ELIZABETH SHUFELT DEP REFUND/APPLIED 235-000- 00 11/01/2022 GEN 77675 EUGENE DUESTERHOEFT OVERPAYMENTS 142-000- 00 11/01/2022 GEN 77676 FS3 INC Power Equipment - Materials 402-598- 02 11/01/2022 GEN 77677 GENPRO ENERGY SOLUTIONS 365 Solar Lighting 936Wh-24V Smartlight 416-106- 00 11/01/2022 GEN 77678 GREAT RIVER ENERGY TRANSMISSION EXPENSE 401-565- 03 11/01/2022 GEN 776794 HUTCHINSON WHOLESALE SUPPLY CO Maintenance Other - Materials 402-554- 01 Vehicles - Material 402-598- 02 HECK GEN 77679 TOTAL FOR FUND 1: 11/01/2022 GEN 77680 JACOB JOCHUM OVERPAYMENTS 142-000- 00 11/01/2022 GEN 77681* JAKE DEAL DEP REFUND/APPLIED 235-000- 00 Page 3/22 Amount 135.76 130.00 453.31 299.06 752.37 156.00 195.00 5,368.00 64.00 5,432.00 50.24 279.50 474.42 2,543.63 15,640.40 231,465.40 24.85 143.82 143.00 11/17/2022 10:26 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 10/22/2022 - 11/20/2022 Payee Description Account Dept Page 4/22 Amount Fund: 1 ELECTRIC 11/01/2022 GEN 77682* JAKE OR HAILER LARSON DEP REFUND/APPLIED 235-000- 00 104.00 11/01/2022 GEN 77683* JAN ALVARADO DEP REFUND/APPLIED 235-000- 00 71.50 11/01/2022 GEN 77684* JOHN OR JUDY ALLERS DEP REFUND/APPLIED 235-000- 00 266.50 11/01/2022 GEN 77685* JOHN OR SYBIL JENNINGS DEP REFUND/APPLIED 235-000- 00 130.00 11/01/2022 GEN 77686* JON LANTTO DEP REFUND/APPLIED 235-000- 00 211.25 11/01/2022 GEN 77687* KAEDEE KAY BERGQUIST DEP REFUND/APPLIED 235-000- 00 169. 00 11/01/2022 GEN 77688* KAILEE BJORKSTRAND OR DEP REFUND/APPLIED 235-000- 00 195.00 11/01/2022 GEN 77689* KARI RETTIG DEP REFUND/APPLIED 235-000- 00 162.50 11/01/2022 GEN 77690* KATHRYNE MCCULLUM DEP REFUND/APPLIED 235-000- 00 260.00 11/01/2022 GEN 77691* KEAGEN PETERSEN DEP REFUND/APPLIED 235-000- 00 188.50 11/01/2022 GEN 77692* KELSEY OR TRENT MERKINS DEP REFUND/APPLIED 235-000- 00 78.00 DEP REFUND/APPLIED 235-000- 00 136.50 HECK GEN 77692 TOTAL FOR FUND 1: 214.50 11/01/2022 GEN 77693* KIMBERLY HOWE DEP REFUND/APPLIED 235-000- 00 146.25 11/01/2022 GEN 77694* KOEPP, ESTHER Cip - Residential 401-916- 07 200.00 11/01/2022 GEN 77696* KYLE BECKER DEP REFUND/APPLIED 235-000- 00 74.75 DEP REFUND/APPLIED 235-000- 00 185.25 11/17/2022 10:26 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 5/22 User: JMartig CHECK DATE FROM 10/22/2022 - 11/20/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 1 ELECTRIC HECK GEN 77696 TOTAL FOR FUND 1: 260.00 11/01/2022 GEN 77697* KYLER RIEKE OR ARIEL GRISWOLD DEP REFUND/APPLIED 235-000- 00 104.00 11/01/2022 GEN 77698* LEAH BROWN DEP REFUND/APPLIED 235-000- 00 130.00 11/01/2022 GEN 77699*4 LOCATORS & SUPPLIES INC PAINT, LOCATING, AERVOE SURVEY 154-000- 00 125. 98 PAINT, LOCATING, AERVOE SURVEY 154-000- 00 11.66 PAINT, LOCATING, INVERTED SURVEY 154-000- 00 62.99 PAINT, LOCATING, INVERTED SURVEY 154-000- 00 5.83 Sales Tax Receivable - New 186-000- 00 12.99 Sales Tax Receivable - New 186-000- 00 1.20 HECK GEN 77699 TOTAL FOR FUND 1: 220.65 11/01/2022 GEN 77700* LOEW, DEBORAH Cip - Residential 401-916- 07 25.00 11/01/2022 GEN 77701* LOGAN NELSON DEP REFUND/APPLIED 235-000- 00 84.50 11/01/2022 GEN 77702* MARCO TECHNOLOGIES, LLC OFFICE SUPPLIES 401-921- 08 535.80 11/01/2022 GEN 77703 MARTIG, JARED TRAINING - EXPENSE 401-930- 08 158.51 11/01/2022 GEN 77704* MASON REESE DEP REFUND/APPLIED 235-000- 00 104.00 11/01/2022 GEN 77706* MELANIE JOHNSEN OR CARY TORVINEN DEP REFUND/APPLIED 235-000- 00 260.00 11/01/2022 GEN 77707* MITCHELL OR DARIELLA BASSLER DEP REFUND/APPLIED 235-000- 00 273.00 11/01/2022 GEN 77708* NATHAN SHANDS OR STACEY SHANDS DEP REFUND/APPLIED 235-000- 00 39. 00 11/01/2022 GEN 77710* PARKER DUESTERHOEFT DEP REFUND/APPLIED 235-000- 00 113.75 11/01/2022 GEN 777114 PARMAN ENERGY GROUP OIL, CHEVRON REGAL R&D 100 154-000- 00 141.66 11/17/2022 10:26 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 6/22 User: JMartig CHECK DATE FROM 10/22/2022 - 11/20/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 1 ELECTRIC SALES TAX & FUEL SURCHARGE 401-588- 02 21.30 HECK GEN 77711 TOTAL FOR FUND 1: 162.96 11/01/2022 GEN 77712 PAUL JANKOVSKY OVERPAYMENTS 142-000- 00 235.68 11/01/2022 GEN 7771314 PRO AUTO & TRANSMISSION REPAIR Vehicles - Material 402-598- 02 69.54 11/01/2022 GEN 77714 RANNOW, BRUCE Cip - Residential 401-916- 07 25.00 11/01/2022 GEN 77715 REBECCA SIMMONS OVERPAYMENTS 142-000- 00 25.00 11/01/2022 GEN 77716* RELIANCE STANDARD LIFE -LIFE LTD INSURANCE-80o ELEC 242-000- 00 1,559.77 LIFE INSURANCE-80o ELEC 242-000- 00 855.38 HEALTH INSURANCE - COBRA 242-000- 00 112.00 HECK GEN 77716 TOTAL FOR FUND 1: 2,527.15 11/01/2022 GEN 77717 RIDGEWATER COLLEGE Cip- Commercial 401-916- 07 1,603.80 11/01/2022 GEN 77719* RYAN WILLIAMS OR TRACY DROESSLER DEP REFUND/APPLIED 235-000- 00 221.00 11/01/2022 GEN 77720* SAM RICHARDSON OR BETHANIE VOSSEN DEP REFUND/APPLIED 235-000- 00 110.50 11/01/2022 GEN 77724* TIMOTHY HAAS DEP REFUND/APPLIED 235-000- 00 48.75 11/01/2022 GEN 77725* TRAVIS NIELSEN OR AMBER NIELSEN DEP REFUND/APPLIED 235-000- 00 214.50 11/01/2022 GEN 77726 TWIN CITIES BOILER REPAIR Boiler Retube 107-344- 00 99,323.00 11/01/2022 GEN 77727 TWIN CITY HOSE U6 Generator Oil Line Mod 402-554- 01 440.34 U7 Generator Oil Line Mod 402-554- 01 440.32 HECK GEN 77727 TOTAL FOR FUND 1: 880.66 11/01/2022 GEN 77728* TYLER BEAUCHAMP DEP REFUND/APPLIED 235-000- 00 195.00 11/01/2022 GEN 77729* UIS/SOURCECORP COLLECTION - MATERIALS 401-903- 06 1,903.15 11/17/2022 10:26 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM 10/22/2022 - 11/20/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Fund: 1 ELECTRIC Collection - Materials 401-903- 06 HECK GEN 77729 TOTAL FOR FUND 1: 11/01/2022 GEN 777304 WARTSILA OF NORTH AMERICA, INC Sales Tax Receivable - Replace 186-000- 00 Trouble Shooting of Ethernet Alarms U5 402-554- 01 HECK GEN 77730 TOTAL FOR FUND 1: 11/01/2022 GEN 77731 WHEELHOUSE INDUSTRIAL Ladder, Plantform, & Handrail Plant 1 107-341- 00 Sales Tax Receivable - Replace 186-000- 00 HECK GEN 77731 TOTAL FOR FUND 1: 11/01/2022 GEN 77732 ZIEGLER ENERGY SOLUTIONS SOLAR - INDUSTRIAL PARK 107-344- 00 11/02/2022 GEN 1243(E)* PAY MENTECH collection - Materials 401-903- 06 11/03/2022 GEN 1234(E)* CITIZENS BANK Office Supplies 401-921- 08 11/10/2022 GEN 1244(E)* INVOICE CLOUD collection - Materials 401-903- 06 11/14/2022 GEN 1240(E) MISO 26 401-565- 03 26A 401-565- 03 26E 401-565- 03 HECK GEN 1240(E) TOTAL FOR FUND 1: 11/14/2022 GEN 1241(E) MISO 2 401-565- 03 1 401-565- 03 26A 401-565- 03 10 401-565- 03 26 401-565- 03 HECK GEN 1241(E) TOTAL FOR FUND 1: 11/14/2022 GEN 1242(E) MISO 10 401-565- 03 Page 7/22 Amount 33.79 1,936.94 153.75 18,673.66 18,827.41 33,527.85 2,305.03 35,832.88 9,770.00 I,882.63 73.58 1,685.97 13,940.43 30,790.95 10,630.60 3,649.53 247.70 63.44 5,142.86 11/17/2022 10:26 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 10/22/2022 - 11/20/2022 Description Fund: 1 ELECTRIC 11/14/2022 GEN 777334 ACE HARDWARE 11/14/2022 GEN 77734 ALISON STOLTENBERG 11/14/2022 GEN 77735 ALTEC 11/14/2022 GEN 77736* AMERICAN PAYMENT CENTERS INC 11/14/2022 GEN 77737 ANDREW EPLEY Account Dept Sales Tax Receivable - Replace 186-000- 00 Supplies 401-550- 01 Supplies 401-550- 01 Generator 46 Material 402-554- 01 HECK GEN 77733 TOTAL FOR FUND 1: OVERPAYMENTS 142-000- 00 PM inspection, testing, winch assemby 402-598- 02 BOX RENTAL 401-903- 06 OVERPAYMENTS 142-000- 00 11/14/2022 GEN 77739* BIRCHDALE FIRE & SAFETY GROUNDS - OUTSIDE SERVICES 401-935- 08 11/14/2022 GEN 77740*4 BORDER STATES ELECTRIC SUPPLY TAPE, SUPER 33+ PROFESSIONAL GRADE 154-000- 00 KIT, SPLICE, QS4-15SP-QCI-2-4/0-BCA 154-000- 00 CONNECTOR, PEDESTAL, 500 MCM 6 PLACE, 154-000- 00 FLOOD SEAL, COVERS (LONG) FSS 350L 154-000- 00 CONNECTOR, MULTI TAP STUD WITH COVER, 154-000- 00 CONNECTOR, GROUND ROD, BURNDY GCRT1/O 154-000- 00 ARRESTOR, ELL, IOKV, 3238018CIOM 154-000- 00 CONDUIT, SCH 40, 4" X 10, PVC 154-000- 00 Sales Tax Receivable - New 186-000- 00 Sales Tax Receivable - New 186-000- 00 Sales Tax Receivable - New 186-000- 00 Sales Tax Receivable - New 186-000- 00 BATTERY, SIZE AA 402-554- 01 BATTERY, SIZE D 401-588- 02 SALES TAX 401-588- 02 HECK GEN 77740 TOTAL FOR FUND 1: 11/14/2022 GEN 777434 CE POWER ENGINEERED SERVICES, LLC Plant 41 Sub Relay Testing 107-362- 00 Plant 1 Substation Trans LTC 402-595- 02 HECK GEN 77743 TOTAL FOR FUND 1: Page 8/22 Amount 1.17 25.64 18.16 16.99 61.96 40.20 27,528.87 51.14 36.72 114.63 104.20 1,623.36 1,023.20 417.60 957.24 76.75 358.15 397.15 283.64 5.28 24.62 30.76 50.40 82.80 5,440.84 5,337.00 14,097.00 11/17/2022 10:26 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 10/22/2022 - 11/20/2022 Description Fund: 1 ELECTRIC 11/14/2022 GEN 777444 CENTRAL HYDRAULICS Account Dept SEAL, PLATE, USED IN 25 GPM RO, 580346 154-000- 00 SEAL, PERMEATE, USED IN 25 GPM RO, 154-000- 00 SEAL, PORT ADAPTER, USED IN 25 GPM RO, 154-000- 00 Sales Tax Receivable - Replace 186-000- 00 Sales Tax Receivable - Replace 186-000- 00 Generator 46 Material 402-554- 01 FREIGHT 401-588- 02 HECK GEN 77744 TOTAL FOR FUND 1: 11/14/2022 GEN 77746*4 CINTAS CORPORATION 4470 Supplies 401-550- 01 Uniforms & Laundry 401-550- 01 Uniforms & Laundry 401-550- 01 UNIFORMS & LAUNDRY 401-588- 02 UNIFORMS & LAUNDRY 401-588- 02 HECK GEN 77746 TOTAL FOR FUND 1: 11/14/2022 GEN 77747*4 CITY OF HUTCHINSON VEHICLE/EQUIPMENT FUEL -POWER 401-550- 01 VEHICLES/EQUIPMENT FUEL-ELEC 401-588- 02 VEHICLES/EQUIPMENT FUEL-ADMIN 55/45 401-935- 08 HECK GEN 77747 TOTAL FOR FUND 1: 11/14/2022 GEN 77748 CLAYTON BOTHUN OR KAYLAA SCHWARZE OVERPAYMENTS 142-000- 00 11/14/2022 GEN 77749 COUNTY OF MCLEOD Street Lighting - Materials 402-596- 02 11/14/2022 GEN 77750 DELMAR COMPANY F400-0063-3200-3750 Exhaust Gasket Cat 402-554- 01 11/14/2022 GEN 77751 DGR ENGINEERING Plant 41 Relay and RTU Upgrades 107-362- 00 Station Equipment (Switchgear, 107-362- 00 3M Substation Relay and RTU Upgrades 107-362- 00 STATION EQUIPMENT (SWITCHGEAR, 107-362- 00 HECK GEN 77751 TOTAL FOR FUND 1: 11/14/2022 GEN 77752 FASTENAL COMPANY Supplies 401-550- 01 Page 9/22 Amount 53.13 26.70 18.50 7.71 2.23 32.50 13.85 154.62 171.88 496.30 503.35 297.80 365.94 1,835.27 225.29 1,192.75 152.94 220.00 331.44 12,200.00 5.26 9,144.00 56.00 21,405.26 50.78 11/17/2022 10:26 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 10/22/2022 - 11/20/2022 Payee Description Account Dept Page 10/22 Amount Fund: 1 ELECTRIC 11/14/2022 GEN 777534 FERGUSON ENTERPRISES 4525 VALVE, BALL, PVC,1/2" 154-000- 00 284. 94 FREIGHT 401-588- 02 25.00 HECK GEN 77753 TOTAL FOR FUND 1: 309.94 11/14/2022 GEN 7775414 GOPHER STATE ONE -CALL INC Line - Materials 401-581- 02 153.23 11/14/2022 GEN 77755 GREG BOYUM OVERPAYMENTS 142-000- 00 33.68 11/14/2022 GEN 77756 HER ENGINEERING INC Plant 1 Pipe Demo Plan Engineering 402-554- 01 1,858.50 Outside Services 402-554- 01 9.06 Plant 1 Pipe Demo Plan Engineering 402-554- 01 2,747.93 Outside Services 402-554- 01 11.25 HECK GEN 77756 TOTAL FOR FUND 1: 4,626.74 11/14/2022 GEN 77757 HILLYARD/HUTCHINSON Supplies 401-550- 01 360.53 11/14/2022 GEN 77758* HUTCHFIELD SERVICES Grounds - Outside Services 401-935- 08 1,093.21 11/14/2022 GEN 77759*4 HUTCHINSON CO-OP Vehicles/Equipment Fuel 401-935- 08 37.00 11/14/2022 GEN 77760* HUTCHINSON LEADER Advertising/Printing 401-921- 08 75.24 11/14/2022 GEN 777614 HUTCHINSON WHOLESALE SUPPLY CO Sales Tax Receivable - Replace 186-000- 00 6.62 Supplies 401-550- 01 25.83 Vehicle/Equipment Fuel 401-550- 01 8.53 Generator 46 Material 402-554- 01 96.35 HECK GEN 77761 TOTAL FOR FUND 1: 137.33 11/14/2022 GEN 77762 IRBY TOOL & SAFETY Uniforms & Laundry 401-588- 02 389.84 11/14/2022 GEN 77763 JUSTIN MONS OVERPAYMENTS 142-000- 00 102.31 11/14/2022 GEN 77764 KRECH OJARD & ASSOCIATES INC. Engineering Serices for Plant 2 401-546- 01 3,510.90 Engineering - Labor 401-546- 01 21.40 HECK GEN 77764 TOTAL FOR FUND 1: 3,532.30 11/17/2022 10:26 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 10/22/2022 - 11/20/2022 Payee Description Account Dept Page 11/22 Amount Fund: 1 ELECTRIC 11/14/2022 GEN 777654 KURITA AMERICA INC TOWER SHIELD, 5173 154-000- 00 4,781.04 BOILERSHIELD 355, BT0300-5 154-000- 00 282.15 RLT4791 154-000- 00 254.00 Sales Tax Receivable - Replace 186-000- 00 374.22 FREIGHT 401-588- 02 125.99 HECK GEN 77765 TOTAL FOR FUND 1: 5,817.40 11/14/2022 GEN 77767 LANDWEHR CONSTRUCTION INC Transformer - Materials 402-595- 02 1,776.50 11/14/2022 GEN 77768 LEAGUE OF MINNESOTA CITIES WORKERS COMPENSATION 401-580- 02 1, 445.63 11/14/2022 GEN 77769*4 LOCATORS & SUPPLIES INC PAINT, LOCATING, INVERTED MARKING 154-000- 00 107.98 Sales Tax Receivable - New 186-000- 00 9.32 FREIGHT 401-588- 02 27.58 HECK GEN 77769 TOTAL FOR FUND 1: 144.88 11/14/2022 GEN 77770 MARISSA TEOREY OR JOSHUA MARKETON OVERPAYMENTS 142-000- 00 65.66 11/14/2022 GEN 777714 MATHESON TRI-GAS INC Sales Tax Receivable - Replace 186-000- 00 10.24 Generator 41 Material 402-554- 01 149.01 HECK GEN 77771 TOTAL FOR FUND 1: 159.25 11/14/2022 GEN 777724 MCC ENERGY SOLUTIONS, LLC I AM MANAGEMENT FEES 401-555- 02 3, 900.00 IAM USAGE FEES 401-556- 03 3,050.00 CHECK GEN 77772 TOTAL FOR FUND 1: 6,950.00 11/14/2022 GEN 777734 MIRATECH SENSOR, TEMPERATURE TEB600 154-000- 00 964.57 FREIGHT 401-588- 02 63.93 HECK GEN 77773 TOTAL FOR FUND 1: 1,028.50 11/14/2022 GEN 77774 MN MUNICIPAL UTILITIES ASSOCIATION Training - Expense 401-546- 01 975.00 11/14/2022 GEN 77776 NORTHWOODS REAL ESTATE GROUP LLC OVERPAYMENTS 142-000- 00 313.66 11/14/2022 GEN 77777* NUVERA TELEPHONE 401-921- 08 1,991.47 11/17/2022 10:26 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 10/22/2022 - 11/20/2022 Payee Description Account Dept Page 12/22 Amount Fund: 1 ELECTRIC 11/14/2022 GEN 77778 O'REILLY AUTOMOTIVE INC Supplies 401-550- 01 28.08 11/14/2022 GEN 77779*4 OXYGEN SERVICE COMPANY INC Supplies 401-550- 01 9,017.00 Supplies 401-550- 01 75.21 Supplies 401-550- 01 64.80 HECK GEN 77779 TOTAL FOR FUND 1: 9,157.01 11/14/2022 GEN 77780* PREMIUM WATERS INC OFFICE SUPPLIES -BOTTLED WATER 401-921- 08 19. 88 11/14/2022 GEN 777824 KID EQUIPMENT NOZZLE, 3600 PSI, 46 ROTARY 154-000- 00 208.00 FREIGHT 401-588- 02 18.87 HECK GEN 77782 TOTAL FOR FUND 1: 226.87 11/14/2022 GEN 77783 REDLINE SYSTEMS, INC Patch Panel - Feeder 107-362- 00 157.77 Sales Tax Receivable - Replace 186-000- 00 10.85 HECK GEN 77783 TOTAL FOR FUND 1: 168.62 11/14/2022 GEN 77784 SCHANTZEN, ROBERT Cip - Residential 401-916- 07 500.00 11/14/2022 GEN 77785 SCHMELING, BRENT Cip - Residential 401-916- 07 25.00 11/14/2022 GEN 77787* SHRED RIGHT OFFICE SUPPLIES -SHREDDING SERVICES 401-921- 08 15.24 11/14/2022 GEN 77788* STIRAS, LARRY Cip - Residential 401-916- 07 200.00 11/14/2022 GEN 777894 T & R ELECTRIC SUPPLY CO INC TRANS, 225 KVA PAD, 3PH 480/277 154-000- 00 10, 807.00 TRANS, 300 KVA PAD, 3PH 480/277 154-000- 00 12,346.00 Sales Tax Receivable - Replace 186-000- 00 1,595.44 FREIGHT 401-588- 02 53.41 HECK GEN 77789 TOTAL FOR FUND 1: 24,801.85 11/14/2022 GEN 77790 TIM VALLACHER OVERPAYMENTS 142-000- 00 42.25 11/14/2022 GEN 77791 TWIN CITIES BOILER REPAIR GENERATORS 107-344- 00 4,212.00 11/17/2022 10:26 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 10/22/2022 - 11/20/2022 Description Fund: 1 ELECTRIC 11/14/2022 GEN 77792* UIS/SOURCECORP 11/14/2022 GEN 77793* UNITED PARCEL SERVICE 11/14/2022 GEN 77794* VAN IWAARDEN ASSOCIATES 11/14/2022 GEN 77795* VERIZON WIRELESS 11/14/2022 GEN 77797*4 WEST CENTRAL SANITATION INC 11/14/2022 GEN 77798 WILD FLOWER PROPERTIES 11/14/2022 GEN 77800 ZIEGLER OIL ANALYSIS LAB 11/14/2022 GEN 778014 ZIEGLER POWER SYSTEMS 11/16/2022 GEN 1233(E)*4 VISA Account Dept Page 13/22 Amount COLLECTION - MATERIALS 401-903- 06 356.98 MAIL SERVICES - UPS, FEDEX 401-921- 08 99. 60 MISC SERVICES 401-923- 08 935.00 TELEPHONE 401-921- 08 1,036.54 Generator 41 Water & Sewer 401-547- 01 115.46 WASTE DISPOSAL-4TH AVE 401-550- 01 186.41 UTILITY ESP - WATER/WASTE 55/45- 401-930- 08 281.68 HECK GEN 77797 TOTAL FOR FUND 1: 583.55 OVERPAYMENTS 142-000- 00 364.07 OVERPAYMENTS 142-000- 00 325.13 HECK GEN 77798 TOTAL FOR FUND 1: 689.20 BOTTLE, OIL SAMPLE, 4SOS-12 154-000- 00 348.00 SPARKPLUG, 193468327 154-000- 00 9,130.00 Materials 401-588- 02 13.07 HECK GEN 77801 TOTAL FOR FUND 1: 9,143.07 Station Equipment (Switchgear, 107-362- 00 78.71 Sales Tax Receivable - Replace 186-000- 00 6.20 Training - Expense 401-546- 01 18.20 Meetings & Travel - Expense (S 401-546- 01 1,053.02 Supplies 401-550- 01 120.82 Supplies 401-550- 01 77.56 Supplies 401-550- 01 56.63 Supplies 401-550- 01 142.36 Supplies 401-550- 01 28.46 11/17/2022 10:26 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee Fund: 1 ELECTRIC 11/18/2022 GEN 1239(E) MRES CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 14/22 CHECK DATE FROM 10/22/2022 - 11/20/2022 Description Account Dept Amount Supplies 401-550- 01 111.70 Supplies 401-550- 01 123.45 Supplies 401-550- 01 99.57 Supplies 401-550- 01 103.30 Uniforms & Laundry 401-550- 01 59.99 Generator 48 Material 402-554- 01 73.89 Maintenance Other - Materials 402-554- 01 (220.12) Maintenance Other - Materials 402-554- 01 480.95 Maintenance Other - Materials 402-554- 01 473.10 Maintenance Other - Materials 402-554- 01 29.26 Maintenance Other - Materials 402-554- 01 116.86 Maintenance Other - Materials 402-554- 01 13.66 Training - Expense 401-580- 02 930.00 Meetings & Travel - Expense (S 401-580- 02 465.00 Line - Materials 401-581- 02 79.77 Power Equipment - Materials 402-598- 02 130.49 Power Equipment - Materials 402-598- 02 129.11 Office Supplies 401-921- 08 48.55 Regulatory Expenses 401-928- 08 1,200.00 CHECK GEN 1233(E) TOTAL FOR FUND 1: 6,030.49 Purchased Power 401-555- 02 825,946.41 Total for fund 1 ELECTRIC 1,570,714.51 11/17/2022 10:26 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 10/22/2022 - 11/20/2022 Payee Description Account Dept Page 15/22 Amount Fund: 2 GAS 10/26/2022 GEN 1231(E)* ALERUS HEALTH INSURANCE 401-926- 08 131.00 11/01/2022 GEN 77647*4 ACE HARDWARE Materials 401-874- 04 38.45 11/01/2022 GEN 77648* ADAM BRODERIUS DEP REFUND/APPLIED 235-000- 00 26.25 11/01/2022 GEN 77649* ADAM SWITZER DEP REFUND/APPLIED 235-000- 00 38.50 11/01/2022 GEN 77651* ALLEN ERBES OR KALEI WILSON DEP REFUND/APPLIED 235-000- 00 105.00 11/01/2022 GEN 77653* ANDREA STEFFEN DEP REFUND/APPLIED 235-000- 00 26.25 11/01/2022 GEN 77654 B & C PLUMBING AND HEATING Materials 402-892- 04 339.40 11/01/2022 GEN 77655* BG JEWELERS DEP REFUND/APPLIED 235-000- 00 168.00 11/01/2022 GEN 77656* BIANCA GARCIA DEP REFUND/APPLIED 235-000- 00 26.25 11/01/2022 GEN 77657* BLAKE GRIFFIN OR TIFFANY HARCOURT DEP REFUND/APPLIED 235-000- 00 105.00 11/01/2022 GEN 77658*4 BORDER STATES ELECTRIC SUPPLY NIPPLE, 1" X 3", BM, STD, SMLS, TEE 154-000- 00 29. 80 TAPE, BELOW GROUND USE, 41 WAX, 4" X 9 154-000- 00 548.16 COUPLING, 3/4" IPS, EF, MDPE 154-000- 00 479.20 NIPPLE, 1" X 2 1/2", BM, STD, SMLS, TEE 154-000- 00 16.08 NIPPLE, 1/4" X 2", BM, STD, SMLS, TEE 154-000- 00 8.88 REDUCER, SWAGE, 2" X 1", STD, BLE X ISE 154-000- 00 40.27 FITTING, WELD STOP 2", LOW PRESSURE 154-000- 00 221.02 Materials 401-874- 04 72.80 SALES TAX 401-874- 04 1.72 SALES TAX 401-874- 04 2.77 SALES TAX 401-874- 04 15.20 HECK GEN 77658 TOTAL FOR FUND 2: 1,435.90 11/17/2022 10:26 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 10/22/2022 - 11/20/2022 Payee Description Account Dept Page 16/22 Amount Fund: 2 GAS 11/01/2022 GEN 77659* BRADY STOVERN DEP REFUND/APPLIED 235-000- 00 17.50 11/01/2022 GEN 77660* BRETT BRANDVOLD OR TORI RIGGLEMAN DEP REFUND/APPLIED 235-000- 00 52.50 11/01/2022 GEN 77662 BURMEISTER, JEROME Cip - Residential 401-916- 07 25.00 11/01/2022 GEN 77665* CAROL PAUTSCH DEP REFUND/APPLIED 235-000- 00 126.00 11/01/2022 GEN 77667* CHRISTOPHER OLESON OR ISAAC SLYTER DEP REFUND/APPLIED 235-000- 00 70.00 11/01/2022 GEN 77668*4 CINTAS CORPORATION 4470 UNIFORMS & LAUNDRY 401-880- 04 147.72 11/01/2022 GEN 77669 CROW RIVER FLORAL Office Supplies 401-921- 08 47.50 11/01/2022 GEN 77670* DALE BUBOLTZ DEP REFUND/APPLIED 235-000- 00 84.00 11/01/2022 GEN 77671* DEB OR BRIAN LENZ DEP REFUND/APPLIED 235-000- 00 105.00 11/01/2022 GEN 77674* ELIZABETH SHUFELT DEP REFUND/APPLIED 235-000- 00 150.50 11/01/2022 GEN 77681* JAKE DEAL DEP REFUND/APPLIED 235-000- 00 77.00 11/01/2022 GEN 77682* JAKE OR HAILER LARSON DEP REFUND/APPLIED 235-000- 00 56.00 11/01/2022 GEN 77683* JAN ALVARADO DEP REFUND/APPLIED 235-000- 00 38.50 11/01/2022 GEN 77684* JOHN OR JUDY ALLERS DEP REFUND/APPLIED 235-000- 00 143.50 11/01/2022 GEN 77685* JOHN OR SYBIL JENNINGS DEP REFUND/APPLIED 235-000- 00 70.00 11/01/2022 GEN 77686* JON LANTTO DEP REFUND/APPLIED 235-000- 00 113.75 11/17/2022 10:26 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 10/22/2022 - 11/20/2022 Payee Description Account Dept Page 17/22 Amount Fund: 2 GAS 11/01/2022 GEN 77687* KAEDEE KAY BERGQUIST DEP REFUND/APPLIED 235-000- 00 91.00 11/01/2022 GEN 77688* KAILEE BJORKSTRAND OR DEP REFUND/APPLIED 235-000- 00 105.00 11/01/2022 GEN 77689* KARI RETTIG DEP REFUND/APPLIED 235-000- 00 87.50 11/01/2022 GEN 77690* KATHRYNE MCCULLUM DEP REFUND/APPLIED 235-000- 00 140.00 11/01/2022 GEN 77691* KEAGEN PETERSEN DEP REFUND/APPLIED 235-000- 00 101.50 11/01/2022 GEN 77692* KELSEY OR TRENT MERKINS DEP REFUND/APPLIED 235-000- 00 42.00 DEP REFUND/APPLIED 235-000- 00 73.50 HECK GEN 77692 TOTAL FOR FUND 2: 115.50 11/01/2022 GEN 77693* KIMBERLY HOWE DEP REFUND/APPLIED 235-000- 00 78.75 11/01/2022 GEN 77694* KOEPP, ESTHER Cip - Residential 401-916- 07 450.00 11/01/2022 GEN 77695 KRANZ LAWN & POWER Power Equipment - Materials 402-895- 04 130.86 11/01/2022 GEN 77696* KYLE BECKER DEP REFUND/APPLIED 235-000- 00 40.25 DEP REFUND/APPLIED 235-000- 00 99.75 HECK GEN 77696 TOTAL FOR FUND 2: 140.00 11/01/2022 GEN 77697* KYLER RIEKE OR ARIEL GRISWOLD DEP REFUND/APPLIED 235-000- 00 56.00 11/01/2022 GEN 77698* LEAH BROWN DEP REFUND/APPLIED 235-000- 00 70.00 11/01/2022 GEN 77699*4 LOCATORS & SUPPLIES INC PAINT, LOCATING, YELLOW (202), 154-000- 00 755.86 PAINT, LOCATING, YELLOW (202), 154-000- 00 69.98 Materials 401-874- 04 58.44 Materials 401-874- 04 5.41 11/17/2022 10:26 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 18/22 User: JMartig CHECK DATE FROM 10/22/2022 - 11/20/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 2 GAS HECK GEN 77699 TOTAL FOR FUND 2: 889.69 11/01/2022 GEN 77700* LOEW, DEBORAH Cip - Residential 401-916- 07 50.00 11/01/2022 GEN 77701* LOGAN NELSON DEP REFUND/APPLIED 235-000- 00 45.50 11/01/2022 GEN 77702* MARCO TECHNOLOGIES, LLC OFFICE SUPPLIES 401-921- 08 178.60 11/01/2022 GEN 77704* MASON REESE DEP REFUND/APPLIED 235-000- 00 56.00 11/01/2022 GEN 77705 MATHEWS, SHAWN Cip - Residential 401-916- 07 300.00 11/01/2022 GEN 77706* MELANIE JOHNSEN OR CARY TORVINEN DEP REFUND/APPLIED 235-000- 00 140.00 11/01/2022 GEN 77707* MITCHELL OR DARIELLA BASSLER DEP REFUND/APPLIED 235-000- 00 147.00 11/01/2022 GEN 77708* NATHAN SHANDS OR STACEY SHANDS DEP REFUND/APPLIED 235-000- 00 21.00 11/01/2022 GEN 77709 PACE ANALYTICAL Mains 107-376- 00 275.00 11/01/2022 GEN 77710* PARKER DUESTERHOEFT DEP REFUND/APPLIED 235-000- 00 61.25 11/01/2022 GEN 77713*4 PRO AUTO & TRANSMISSION REPAIR Vehicles - Material 402-895- 04 1,220.99 Vehicles - Material 402-895- 04 76.77 HECK GEN 77713 TOTAL FOR FUND 2: 1,297.76 11/01/2022 GEN 77716* RELIANCE STANDARD LIFE -LIFE LTD INSURANCE-20o GAS 242-000- 00 389. 95 LIFE INSURANCE-20o GAS 242-000- 00 214.85 HECK GEN 77716 TOTAL FOR FUND 2: 604.80 11/01/2022 GEN 77718 RUSCH, BRYCE Public Awareness - Material 401-856- 05 556.27 11/01/2022 GEN 77719* RYAN WILLIAMS OR TRACY DROESSLER DEP REFUND/APPLIED 235-000- 00 119.00 11/17/2022 10:26 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 10/22/2022 - 11/20/2022 Payee Description Account Dept Page 19/22 Amount Fund: 2 GAS 11/01/2022 GEN 77720* SAM RICHARDSON OR BETHANIE VOSSEN DEP REFUND/APPLIED 235-000- 00 59. 50 11/01/2022 GEN 77721 SOUTH CENTRAL ELECTRIC ASS'N UTILITIES (ELECTRIC, SATELLITE 401-856- 05 34.00 11/01/2022 GEN 77722 STANDARD PRINTING & MAILING Mains 107-376- 00 125. 95 11/01/2022 GEN 77723 TDW US INC. In -Line Inspection of 12" Lateral 107-367- 00 46,720.00 11/01/2022 GEN 77724* TIMOTHY HAAS DEP REFUND/APPLIED 235-000- 00 26.25 11/01/2022 GEN 77725* TRAVIS NIELSEN OR AMBER NIELSEN DEP REFUND/APPLIED 235-000- 00 115.50 11/01/2022 GEN 77728* TYLER BEAUCHAMP DEP REFUND/APPLIED 235-000- 00 105.00 11/01/2022 GEN 77729* UIS/SOURCECORP COLLECTION - MATERIALS 401-903- 06 1,557.13 Collection - Materials 401-903- 06 27.66 HECK GEN 77729 TOTAL FOR FUND 2: 1,584.79 11/02/2022 GEN 1243(E)* PAY MENTECH collection - Materials 401-903- 06 1,540.33 11/03/2022 GEN 1234(E)* CITIZENS BANK Office Supplies 401-921- 08 73.58 11/10/2022 GEN 1244(E)* INVOICE CLOUD collection - Materials 401-903- 06 1,379.43 11/14/2022 GEN 77736* AMERICAN PAYMENT CENTERS INC BOX RENTAL 401-903- 06 41.84 11/14/2022 GEN 77738 BECKER, LISA Cip - Residential 401-916- 07 350.00 11/14/2022 GEN 77739* BIRCHDALE FIRE & SAFETY GROUNDS - OUTSIDE SERVICES 401-935- 08 93.78 11/14/2022 GEN 77740*4 BORDER STATES ELECTRIC SUPPLY GREASE, VALVE, VAL-TEX P/N 750-J 154-000- 00 219. 65 ELL, FEMALE THRD, 90 DEG, 1", BM, CLASS 154-000- 00 54.00 PRIMER, TEMCOAT 3000, ANTICORROSION, 154-000- 00 50.37 11/17/2022 10:26 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 10/22/2022 - 11/20/2022 Payee Description Account Dept Page 20/22 Amount Fund: 2 GAS VALVE BOX, 6" WIDTH WITH 12" BELL, 154-000- 00 703.80 Materials 401-874- 04 15.10 SALES TAX 401-874- 04 7.17 SALES TAX 401-874- 04 48.39 BATTERY, SIZE C 401-874- 04 105.12 BATTERY, SIZE D 401-874- 04 82.80 SALES TAX 401-874- 04 12.93 HECK GEN 77740 TOTAL FOR FUND 2: 1,299.33 11/14/2022 GEN 77741 BRAULICK, AUDREY Cip - Residential 401-916- 07 25.00 11/14/2022 GEN 77742 BROWN COUNTY RURAL ELECTRIC Utilities (Electric, Satellite 401-856- 05 182.52 11/14/2022 GEN 77745 CENTURYLINK Utilities (Electric, Satellite 401-856- 05 72.07 11/14/2022 GEN 77746*4 CINTAS CORPORATION 4470 Materials 401-874- 04 140.63 UNIFORMS & LAUNDRY 401-880- 04 150. 96 UNIFORMS & LAUNDRY 401-880- 04 150. 96 HECK GEN 77746 TOTAL FOR FUND 2: 442.55 11/14/2022 GEN 77747*4 CITY OF HUTCHINSON VEHICLE/EQUIPMENT FUEL -GAS 401-880- 04 831. 93 VEHICLES/EQUIPMENT FUEL-ADMIN 55/45 401-935- 08 89.38 HECK GEN 77747 TOTAL FOR FUND 2: 921.31 11/14/2022 GEN 77754*4 GOPHER STATE ONE -CALL INC Materials 401-874- 04 153.22 Line - Outside Services 401-856- 05 56.70 HECK GEN 77754 TOTAL FOR FUND 2: 209.92 11/14/2022 GEN 77758* HUTCHFIELD SERVICES Grounds - Outside Services 401-935- 08 894.44 11/14/2022 GEN 77759*4 HUTCHINSON CO-OP Vehicle/Equipment Fuel 401-880- 04 1,028.15 11/14/2022 GEN 77760* HUTCHINSON LEADER Advertising/Printing 401-921- 08 61.56 11/14/2022 GEN 77766 KURTH WELDING & REPAIR Meters And All Fittings 107-381- 00 422.00 11/17/2022 10:26 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM 10/22/2022 - 11/20/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Fund: 2 GAS 11/14/2022 GEN 77769*4 LOCATORS & SUPPLIES INC FLAG, LOCATE, 5" x 8", ON 36" WIRE 154-000- 00 TAX & FREIGHT 401-874- 04 HECK GEN 77769 TOTAL FOR FUND 2: 11/14/2022 GEN 77775 NORTHERN BORDER PIPELINE CO LINE - OUTSIDE SERVICES -INTERCONNECT 401-856- 05 11/14/2022 GEN 77777* NUVERA TELEPHONE 401-921- 08 11/14/2022 GEN 77779*4 OXYGEN SERVICE COMPANY INC Materials 401-874- 04 Materials 401-874- 04 Materials 401-874- 04 HECK GEN 77779 TOTAL FOR FUND 2: 11/14/2022 GEN 77780* PREMIUM WATERS INC OFFICE SUPPLIES -BOTTLED WATER 401-921- 08 11/14/2022 GEN 77781 PRO AUTO & TRANSMISSION REPAIR Vehicles - Material 402-895- 04 11/14/2022 GEN 777864 SENSIT TECHNOLOGIES GAS, CALIBRATION, 2.5% BY VOL.(50oLEL) 154-000- 00 Materials 401-874- 04 -n7rV rF'N '7'7'7 R G, TnT a T. 7nP 7T W it ? 11/14/2022 GEN 77787* SHRED RIGHT 11/14/2022 GEN 77788* STIRAS, LARRY 11/14/2022 GEN 77792* UIS/SOURCECORP 11/14/2022 GEN 77793* UNITED PARCEL SERVICE 11/14/2022 GEN 77794* VAN IWAARDEN ASSOCIATES 11/14/2022 GEN 77795* VERIZON WIRELESS OFFICE SUPPLIES -SHREDDING SERVICES 401-921- 08 Cip - Residential 401-916- 07 COLLECTION - MATERIALS 401-903- 06 MAIL SERVICES - UPS, FEDEX 401-921- 08 Misc Services 401-923- 08 TELEPHONE 401-921- 08 Page 21/22 Amount 770.00 136.52 906.52 2,000.00 663.82 (8,836.66) 75.21 6.62 68.70 180.32 64.64 244.96 5.08 350.00 292.08 33.20 765.00 345.52 11/17/2022 10:26 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 10/22/2022 - 11/20/2022 Payee Description Account Dept Page 22/22 Amount Fund: 2 GAS 11/14/2022 GEN 77796 VONCO II, LLC Mains 107-367- 00 200.00 11/14/2022 GEN 77797*4 WEST CENTRAL SANITATION INC UTILITY ESP - WATER/WASTE 45/55- 401-930- 08 230.48 11/14/2022 GEN 77799 WSB Engineering Review of ILI Data 401-856- 05 52.20 Line - Outside Services 401-856- 05 1.02 HECK GEN 77799 TOTAL FOR FUND 2: 53.22 11/16/2022 GEN 1233(E)*4 VISA Meetings & Travel - Expense (S 401-870- 04 616.60 Meetings & Travel - Expense (S 401-870- 04 438.37 Materials 401-874- 04 84.14 MATERIALS - 7.44 401-874- 04 108.27 Power Equipment - Materials 402-895- 04 129.11 Line - Outside Services 401-856- 05 89.47 Utilities (Electric, Satellite 401-856- 05 101.54 Materials 402-863- 05 2,441.26 HECK GEN 1233(E) TOTAL FOR FUND 2: 4,008.76 11/18/2022 GEN 1235(E) PUBLIC ENERGY AUTHORITY OF Gas For Retail 401-807- 04 267,452.66 HTI 401-807- 04 80.60 HECK GEN 1235(E) TOTAL FOR FUND 2: 267,533.26 Total for fund 2 GAS 336,891.82 TOTAL - ALL FUNDS 1,907,606.33 '*'-INDICATES CHECK DISTRIBUTED TO MORE THAN ONE FUND '#'-INDICATES CHECK DISTRIBUTED TO MORE THAN ONE DEPARTMENT HUTCHINSON UTILITIES COMMISSION COMBINED DIVISIONS FINANCIAL REPORT FOR OCTOBER, 2022 2022 2021 2 %Chnq 2022 2021 2 %Chnq FuIIYrBud %of Bud Combined Division Customer Revenue $ 2,740,293 $ 2,834,552 $ (94,259) (3.3%) $ 31,526,880 $ 32,124,878 $ (597,999) (1.9%) $ 37,355,080 84.4% Sales for Resale $ 485,585 $ 379,976 $ 105,609 27.8% $ 4,498,846 $ 3,523,957 $ 974,888 27.7% $ 3,692,000 121.9% NU Transportation $ 108,246 $ 104,477 $ 3,769 3.6% $ 919,028 $ 886,637 $ 32,391 3.7% $ 1,010,124 91.0% Electric Division Transfer $ 59,724 $ 56,879 $ 2,844 5.0% $ 597,236 $ 568,792 $ 28,444 5.0% $ 716,383 83.4% Other Revenues $ 54,352 $ 78,625 $ (24,273) (30.9%) $ 558,987 $ 405,337 $ 153,650 37.9% $ 479,700 116.5% Interest Income $ 50,969 $ 25,118 $ 25,851 102.9% $ 417,499 $ 352,073 $ 65,426 18.6% $ 383,456 108.9% TOTAL REVENUES $ 3,499,168 $ 3,479,627 $ 19,541 0.6% $ 38,518,475 $ 37,861,674 $ 656,801 1.7% $ 43,636,743 88.3% Salaries & Benefits $ 568,050 $ 508,963 $ 59,088 11.61% $ 5,689,964 $ 5,396,692 $ 293,272 5.4% $ 7,270,807 78.3% Purchased Commodities $ 1,535,070 $ 1,492,197 $ 42,873 2.9% $ 17,819,861 $ 19,476,332 $ (1,656,470) (8.5%) $ 19,927,587 89.4% Transmission $ 230,637 $ 212,987 $ 17,650 8.3% $ 2,527,891 $ 2,481,325 $ 46,566 1.9% $ 3,325,000 76.0% Generator Fuel/Chem. $ 145,641 $ 227,505 $ (81,864) (36.0%) $ 2,503,105 $ 1,536,374 $ 966,731 62.9% $ 1,219,698 205.2% Depreciation $ 375,447 $ 370,893 $ 4,554 1.2% $ 3,775,110 $ 3,682,187 $ 92,924 2.5% $ 4,400,000 85.8% Transfers (Elect./City) $ 215,323 $ 212,479 $ 2,844 1.3% $ 2,153,229 $ 2,124,785 $ 28,444 1.3% $ 2,583,875 83.3% Operating Expense $ 221,806 $ 205,890 $ 15,916 7.7% $ 2,579,372 $ 1,990,564 $ 588,807 29.6% $ 3,367,066 76.6% Debt Interest $ 75,076 $ 83,542 $ (8,467) (10.1%) $ 750,755 $ 835,422 $ (84,666) 10.1% $ 900,907 83.3% TOTAL EXPENSES $ 3,367,050 $ 3,314,455 $ 52,595 1.6% $ 37,799,288 $ 37,523,681 $ 275,607 0.7% $ 42,994,940 87.9% NET PROFIT/(LOSS) $ 132,117 $ 165,172 $ (33,054) (20.0%)l 719,188 $ 337,994 $ 381,194 112.8% $ 641,803 112.1% October October YTD YTD 2022 HUC 2022 2021 Change 2022 2021 Change Budget Target Gross Margin %: 33.5% 32.7% 0.7% 29.3% 27.7% 1.6% 32.6% Operating Income Per Revenue $ (%): 3.4% 4.9% -1.4% 1.7% 1.3% 0.5% 2.2% N Net Income Per Revenue $ (%): 3.8% 4.7% -1.0% 1.9% 0.9% 1.0% 1.5% N Notes/Graphs: HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION FINANCIAL REPORT FOR OCTOBER, 2022 I 83.3% o Year Com t 2022 2021 2 %Chna 2022 2021 2 %Chna Full YrBud %of Bud Electric Division Customer Revenue $ 1,895,713 $ 2,032,198 $ (136,485) (6.7%) $ 21,058,689 $ 21,359,786 $ (301,097) (1.4%) $ 25,325,244 83.2% Sales for Resale $ 485,585 $ 379,976 $ 105,609 27.8% $ 4,498,846 $ 3,523,957 $ 974,888 27.7% $ 3,692,000 121.9% Other Revenues $ 26,872 $ 54,758 $ (27,886) (50.9%) $ 262443 $ 169,590 $ 92,853 54.8% $ 188,599 139.2% Interest Income $ 26,878 $ 13,953 $ 12,925 92.6% $ 222:725 $ 189,925 $ 32,800 17.3% $ 208,456 106.8% TOTAL REVENUES $ 2,435,048 $ 2,480,885 $ (45,837) (1.8%) $ 26,042,702 $ 25,243,259 $ 799,443 3.2% $ 29,414,299 88.5% Salaries & Benefits $ 440,817 $ 373,388 $ 67,429 18.1% $ 4,335,117 $ 3,997,669 $ 337,448 8.4% $ 5,319,511 81.5% Purchased Power $ 998,069 $ 1,007,255 $ (9,186) (0.9%) $ 10,894,179 $ 11,298,868 $ (404,690) (3.6%) $ 12,297,526 88.6% Transmission $ 230,637 $ 212,987 $ 17,650 8.3% $ 2,527,891 $ 2,481,325 $ 46,566 1.9% $ 3,325,000 76.0% Generator Fuel/Chem. $ 145,641 $ 227,505 $ (81,864) (36.0%) $ 2,503,105 $ 1,536,374 $ 966,731 62.9% $ 1,219,698 205.2% Depreciation $ 285,425 $ 279,578 $ 5,847 2.1% $ 2,864,617 $ 2,767,463 $ 97,154 3.5% $ 3,300,000 86.8% Transfers (Elect./City) $ 167,519 $ 164,674 $ 2,844 1.7% $ 1,675,188 $ 1,646,744 $ 28,444 1.7% $ 2,010,226 83.3% Operating Expense $ 178,290 $ 145,283 $ 33,007 22.7% $ 1,855,502 $ 1,359,186 $ 496,316 36.5% $ 1,928,042 96.2% Debt Interest $ 40,071 $ 43,321 $ (3,250) (7.5%) $ 400,714 $ 433,213 $ (32,500) JL $ 480,857 83.3% TOTAL EXPENSES $ 2,486,470 $ 2,453,992 $ 32,478 1.3% $ 27,056,313 $ 25,520,843 $ 1,535,470 6.0% $ 29,880,860 90.5% NET PROFIT/(LOSS) $ (51,422) $ 26,893 $ (78,315) (291.2%) $ (1,013,611) $ (277,584) $ (736,027) 265.2% $ (466,561) 217.3% 2022 2021 2 %Chna 2022 2021 2 %Chna Full YrBud %of Bud Electric Division Residential 3,518,711 3,680,227 (161,516) (4.39%) 44,978,390 45,346,210 (367,820) (0.81%) 54,152,764 83.1% All Electric 143,827 135,579 8,248 6.08% 2,170,033 2,013,980 156,053 7.75% 2,641,117 82.2% Small General 1,342,596 1,323,346 19,250 1.45% 15,221,550 15,124,794 96,756 0.64% 18,688,349 81.4% Large General 6,569,730 7,180,600 (610,870) (8.51%) 71,077,700 72,199,730 (1,122,030) (1.55%) 83,253,310 85.4% Industrial 8,641,000 9,645,000 (1,004,000) (10.41%) 97,569,000 102,050,000 (4,481,000) (4.39%) 122,088,679 79.9% Total KWH Sold 20,215,864 21,964,752 (1,748,888) (7.96%) 231,016,673 236,734,714 (5,718,041) (2.42%) 280,824,218 82.3% October October YTD YTD 2022 HUC 2022 2021 Change 2022 2021 Change Budget Target Gross Margin %: 28.2% 26.9% 1.3% 23.9% 25.8% -1.9% 29.2% 24%-28% Operating Income Per Revenue $ (%): -2.2% 0.7% -2.9% -3.8% -0.7% -3.2% -0.7% Net Income Per Revenue $ (%): -2.1% 1.1% -3.2% -3.9% -1.1% -2.8% -1.6% Customer Revenue per KWH: $0.0938 $0.0925 $0.0013 $0.0912 $0.0902 $0.0009 $0.0902 Total Power Supply Exp. per KWH: $0.0850 $0.0808 $0.0042 $0.0845 $0.0781 $0.0064 $0.0736 $0.0736 Net Income decreased by $78,315 over October 2021. The primary reason for this decrease was the decrease in revenue and continued increases in salaries due to less capitalized labor. Sales for Resale of $485,585 consisted of $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 agreement sales to Dynasty Power. October 2021 Sales for Resale of $379,976 included $135,726 in market sales, $146,250 in capacity sales to AEP, and $98,000 in capacity sales to Rice Lake. October 2020 Sales for Resale of $268,437 consisted of $24,187 in market sales, $146,250 in capacity sales to AEP, and $98,000 in capacity sales to Rice Lake. Overall Purchased Power decreased by $9,186. MRES purchases decreased by $34,913 and market purchases/MISO costs increased by $25,727. The average cost of MISO power was $45.27/mwh (3,048 mwh's purchased), compared to $48.74/mwh (4,251 mwh's purchased) in October 2021. Power Cost Adjustment for October 2022 was $.00691 bringing in an additional $139,896 for the month and $1,283,470 YTD. Power Cost Adjustment for October 2021 was $.00672 bringing in an additional $147,894 for the month and $1,330,915 YTD. HUTCHINSON UTILITIES COMMISSION GAS DIVISION FINANCIAL REPORT FOR OCTOBER, 2022 2022 2021 Di . Gas Division Customer Revenue $ 844,580 $ 802,355 $ 42,226 Transportation $ 108,246 $ 104,477 $ 3,769 Electric Div. Transfer $ 59,724 $ 56,879 $ 2,844 Other Revenues $ 27,480 $ 23,867 $ 3,613 Interest Income $ 24,090 $ 11,165 $ 12,925 TOTAL REVENUES $ 1,064,120 $ 998,742 $ 65,378 Salaries & Benefits $ 127,234 $ 135,575 $ (8,341) Purchased Gas $ 537,001 $ 484,943 $ 52,059 Operating Expense $ 43,516 $ 60,607 $ (17,091) Depreciation $ 90,022 $ 91,315 $ (1,293) Transfers (City) $ 47,804 $ 47,804 $ Debt Interest $ 35,004 $ 40,221 $ (5,217) TOTAL EXPENSES $ 880,581 $ 860,464 $ 20,117 NET PROFIT/(LOSS) $ 183,539 $ 138,278 $ 45,261 % Chna 1 2022 2021 Di . 5.3%1 $ 10,468,191 $ 10,765,092 $ (296,901) 3.6% $ 919,028 $ 886,637 $ 32,391 5.0% $ 597,236 $ 568,792 $ 28,444 15.1% $ 296,544 $ 235,747 $ 60,797 115.8% $ 194,774 $ 162,148 $ 32,626 6.5% $ 12,475,773 $ 12,618,415 $ (142,642) (6.2%) $ 1,354,846 $ 1,399,023 $ (44,176) 10.7% $ 6,925,682 $ 8,177,463 $ (1,251,781) (28.2%) $ 723,870 $ 631,379 $ 92,491 (1.4%) $ 910,493 $ 914,723 $ (4,230) 0.0% $ 478,041 $ 478,041 $ 0 0.0% $ 350,042 $ 402,208 $ (52,167) 2.3% $ 10,742,974 $ 12,002,837 $ (1,259,863) 32.7%1 $ 1,732,799 $ 615,578 $ 1,117,221 83.3% of Year Comp. % Chna Full Yr Bud % of Bud (2.8%) $ 12,029,836 87.0% 3.7% $ 1,010,124 91.0% 5.0% $ 716,383 83.4% 25.8% $ 291,101 101.9% 20.1% $ 175,000 111.3% (1.1%) $ 14,222,444 87.7% (3.2%) $ 1,951,296 69.4% (15.3%) $ 7,630,061 90.8% 14.6% $ 1,439,024 50.3% (0.5%) $ 1,100,000 82.8% 0.0% $ 573,649 83.3% 13.0% $ 420,050 83.3% (10.5%) $ 13,114,080 81.9% $ 1,108,364 156.3% 2022 2021 Di %Chng 1 2022 2021 Di %Chng I Full YrBud %of Bud Gas Division Residential 22,917,220 17,077,381 5,839,839 34.20% 339,968,865 276,989,306 62,979,559 22.74% 439,919,000 77.3% Commercial 20,491,718 14,043,766 6,447,952 45.91% 268,088,389 219,613,700 48,474,689 22.07% 347,946,000 77.0% Industrial 74,100,291 70,471,186 3,629,105 5.15% 732,139,797 688,733,860 43,405,937 6.30% 873,587,000 83.8% Total CF Sold 117,509,229 101,592,333 15,916,896 15.67% 1,340,197,051 1,185,336,866 154,860,185 13.06% 1,661,452,000 80.7% October October YTD YTD 2022 HUC 2022 2021 Change 2022 2021 Change Budget Target Gross Margin %: 46.0% 47.5% -1.5% 40.8% 31.6% 9.2% 39.9% Operating Income Per Revenue $ (%): 16.8% 15.4% 1.4% 13.6% 5.2% 8.4% 8.2% Net Income Per Revenue $ (%): 17.2% 13.8% 3.4% 13.9% 4.9% 9.0% 7.8% Contracted Customer Rev. per CF: $0.0060 $0.0050 $0.0010 $0.0062 $0.0064 -$0.0002 $0.0056 Customer Revenue per CF: $0.0089 $0.0134 -$0.0046 $0.0095 $0.0124 -$0.0029 $0.0088 Total Power Supply Exp. per CF: $0.0047 $0.0050 ($0.0003) $0.0053 $0.0071 ($0.0017) $0.0050 $0.0050 October 2022 net income increased by $45,261 mainly due to the increased revenues from higher usage. October 2022 fuel cost credit adjustment was $1.42 resulting in $68,786 in credits going back to the customer for the month and $89,250 YTD. October 2021 fuel cost adjustment was $2.18 per MCF which brought in $76,270 for the month with a total of $1,216,312 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 Total Assets HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED OCTOBER 31, 2022 Electric Gas Total Division Division 2022 Total Net Change 2021 Total (YTD) 6,281,408.02 11,389,249.43 17,670,657.45 17,042,070.41 628,587.04 680.00 170.00 850.00 850.00 - 2,750,000.00 700,000.00 3,450,000.00 3,450,000.00 - 1,293,543.00 573,649.00 1,867,192.00 1,867,192.00 - 395,204.99 - 395,204.99 364,336.05 30,868.94 - 607,452.34 607,452.34 493,550.10 113,902.24 800,000.00 200,000.00 1,000,000.00 1,000,000.00 - 1,542,023.36 - 1,542,023.36 1,784,284.96 (242,261.60) - 1,760,854.18 1,760,854.18 1,877,012.50 (116,158.32) 522,335.64 2,188,694.02 2,711,029.66 2,711,029.66 - 13,585,195.01 17,420,068.97 31,005,263.98 30,590,325.68 414,938.30 2,143,044.23 1,005,480.61 3,148,524.84 3,033,953.97 114,570.87 47,207.51 47,207.50 94,415.01 97,985.30 (3,570.29) 2,190,251.74 1,052,688.11 3,242,939.85 3,131,939.27 111,000.58 1,650,452.96 515,986.98 2,166,439.94 2,219,073.44 (52,633.50) (257,601.09) 15,463.85 (242,137.24) 241,701.04 (483,838.28) 202,034.02 - 202,034.02 139,824.35 62,209.67 1,630,746.00 - 1,630,746.00 313,166.00 1,317,580.00 - 543,582.00 543,582.00 104,390.00 439,192.00 3,225,631.89 1,075,032.83 4,300,664.72 3,018,154.83 1,282,509.89 19,001,078.64 19,547,789.91 38,548,868.55 36,740,419.78 1,808,448.77 690,368.40 3,899,918.60 4,590,287.00 4,590,287.00 - 111,117,598.95 42,656,015.41 153,773,614.36 151,765,445.34 2,008,169.02 (66,551,470.50) (20,082,620.59) (86,634,091.09) (82,445,683.71) (4,188,407.38) 1,389,728.00 451,740.10 1,841,468.10 2,130,840.68 (289,372.58) 46,646,224.85 26,925,053.52 73,571,278.37 76,040,889.31 (2,469,610.94) 65,647,303.49 46,472,843.43 112,120,146.92 112,781,309.09 (661,162.17) Current Liabilities Current Portion of Long-term Debt Bonds Payable Bond Premium Accounts Payable Accrued Expenses Accrued Interest Accrued Payroll Total Current Liabilities Long -Term Liabilities Noncurrent Portion of Long-term Debt 2017 Bonds 2012 Bonds Bond Premium 2012 Pension Liability- Electric Pension Liability - Electric OPEB Pension Liability - Nat Gas Pension Liability - Nat Gas OPEB Accrued Vacation Payable Accrued Severance Deferred Outflows - Electric Deferred Outflows - Nat Gas Total Long -Term Liabilities Net Position Retained Earnings Total Net Position HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED OCTOBER 31, 2022 Electric Gas Total Division Division 2022 700,000.00 1,749,531.75 200,356.80 68,417.62 2,718,306.17 14,030,000.00 504,642.48 2,219,565.00 94,162.00 431,660.51 91,639.00 2,041,393.00 19,413,061.99 1,730,000.00 185,608.32 674,229.33 175,020.85 21,416.23 2,786,274.73 7,780,000.00 572,291.95 739,855.00 31,387.00 163,481.47 31,615.85 680,464.00 9,999,095.27 2,430,000.00 185,608.32 2,423,761.08 375,377.65 89,833.85 5,504,580.90 14,030,000.00 7,780,000.00 1,076,934.43 2,219,565.00 94,162.00 739,855.00 31,387.00 595,141.98 123,254.85 2,041,393.00 680,464.00 29,412,157.26 Total 2021 2,240,000.00 185,608.32 3,122, 598.77 422,710.65 84,506.73 6,055,424.47 14,730,000.00 9,510,000.00 1,295,999.71 3,026,207.00 84,054.00 1,008,736.00 28,018.00 584,864.37 124,387.07 123,417.00 41,139.00 30,556,822.15 Net Change Total (YTD) 190,000.00 (698,837.69) (47,333.00) 5,327.12 (550,843.57) (700,000.00) (1,730,000.00) (219,065.28) (806,642.00) 10,108.00 (268,881.00) 3,369.00 10,277.61 (1,132.22) 1,917,976.00 639,325.00 (1,144,664.89) 43,515,935.33 33,687,473.43 77,203,408.76 76,169,062.47 1,034,346.29 43,515,935.33 33,687,473.43 77,203,408.76 76,169,062.47 1,034,346.29 Total Liabilities and Net Position 65,647,303.49 46,472,843.43 112,120,146.92 112,781,309.09 (661,162.17) Hutchinson Utilities Commission Cash -Designations Report, Combined October 31, 2022 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest October 2022 September 2022 Position Savings, Checking, Investments varies Total Operating Funds varies varies 31,005,263.98 30,796,076.16 209,187.82 Debt Reserve Requirements Bond Covenants - sinking fund Debt Reserve Requirements Bond Covenants -1 year Max. P & I Total Restricted Funds 31,005,263.98 30,796,076.16 209,187.82 3,302,877.54 3,025,302.01 277,575.53 2,711,029.66 2,711,029.66 - 6,013,907.20 5,736,331.67 277,575.53 Operating Reserve Min 60 days of 2022 Operating Bud. 6,432,490.00 6,432,490.00 Rate Stabalization Funds 1,002,657.33 1,002,657.33 PILOT Funds Charter (Formula Only) 1,867,192.00 1,867,192.00 Catastrophic Funds Risk Mitigation Amount 1,000,000.00 1,000,000.00 Capital Reserves 5 Year CIP (2022-2026 Fleet & Infrastructure Maintenance) 3,450,000.00 3,450,000.00 Total Designated Funds 13,752,339.33 13,752,339.33 YE YE YE YE YTD HUC 2018 2019 2020 2021 2022 Target Debt to Asset 37.7% 34.9% 32.3% 30.8% 31.1% Current Ratio 3.93 5.11 5.67 5.22 5.52 RONA 3.16% 2.25% 3.62% 0.41% 0.73% Change in Cash Balance (From 12131114 to 1013112022) Month End Electric Elec. Change Natural Gas Gas Change Total Total Change 10/31/2022 13, 585,195 17, 420, 069 31, 005, 264 12/31/2021 12,870,253 714,942 15,086,000 2,334,069 27,956,253 3,049,011 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, 2022 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest October 2022 September 2022 Position Savings, Checking, Investments varies varies varies 31,005,263.98 30,796,076.16 209,187.82 Total HUC Operating Funds 31,005,263.98 30,796,076.16 209,187.82 Debt Restricted Requirements Debt Restricted Requirements Total Restricted Funds Bond Covenants - sinking fund Bond Covenants -1 year Max. P & 1 1,542,023.36 522,335.64 2,064,359.00 1,443,618.67 522,335.64 1,965,954.31 98,404.69 - 98,404.69 Excess Reserves Less Restrictions, Electric 11,520,836.01 11,445,582.73 75,253.28 Operating Reserve Min 60 days of 2022 Operating Bud. 4,430,143.33 4,430,143.33 - Rate Stabalization Funds $400K-$1.2K 395,204.99 395,204.99 PILOT Funds Charter (Formula Only) 1,293,543.00 1,293,543.00 Catastrophic Funds Risk Mitigation Amount 800,000.00 800,000.00 Capital Reserves 5 Year CIP (2022-2026 Fleet & Infrastructure Maintenance) 2,750,000.00 2,750,000.00 Total Designated Funds 9,668,891.32 9,668,891.32 - Excess Reserves Less Restrictions & Designations, Electric 1,851,944.69 1,776,691.41 75,253.28 YE YE YE YE YTD APPA Ratio HUC 2018 2019 2020 2021 2022 5K-10K Cust. Target Debt to Asset Ratio (* w/Gen.) 35.7% 34.1% 32.6% 32.2% 33.7% 39.8% ONE Current Ratio 3.63 5.26 6.18 5.70 5.63 3.75 RONA -0.3% -0.4% 2.5% -1.2% -1.7% NA >0% Hutchinson Utilities Commission Cash -Designations Report, Gas October 31, 2022 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest October 2022 September 2022 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 varies 31,005,263.98 30,796,076.16 209,187.82 31,005,263.98 30,796,076.16 209,187.82 1, 760, 854.18 1, 581, 683.34 179,170.84 2,188,694.02 2,188,694.02 - 3,949,548.20 3,770,377.36 179,170.84 Operating Reserve Min 60 days of 2022 Operating Bud. 2,002,346.67 2,002,346.67 Rate Stabalization Funds $200K-$600K 607,452.34 607,452.34 PILOT Funds Charter (Formula Only) 573,649.00 573,649.00 Catastrophic Funds Risk Mitigation Amount 200,000.00 200,000.00 Capital Reserves 5 Year CIP ( 2022-2026 Fleet & Infrastructure Maintenance) 700,000.00 700,000.00 Total Designated Funds 4,083,448.01 4,083,448.01 YE YE YE YE YTD HUC 2018 2019 2020 2021 2022 AGA Ratio Target Debt to Asset 40.7% 36.1% 32.0% 28.8% 27.5% 35%-50% Current Ratio 4.33 4.96 5.18 4.79 5.40 1.0-3.0 RONA 8.3% 6.4% 5.3% 2.9% 4.4% 2%-5% HUTCHINSON UTILITIES COMMISSION Investment Report For the Month Ended October 31, 2022 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 2.500% 2.500% NA NA - 22,518.50 - - - N/A Wells Fargo US Treasury Note 1.625% 1.414% 06/07/2022 12/15/2022 1,000,000.00 997,580.00 1,001,090.63 (3,510.63) 1,090.63 N/A Wells Fargo US Treasury Note 2.375% 1.677% 06/07/2022 01/31/2023 1,000,000.00 995,660.00 1,004,471.88 (8,811.88) 4,471.88 N/A Wells Fargo US Treasury Note 2.500% 1.942% 06/07/2022 03/31/2023 1,000,000.00 992,810.00 1,004,471.88 (11,661.88) 4,471.88 N/A Wells Fargo US Treasury Note 2.750% 2.128% 06/07/2022 05/31/2023 1,000,000.00 990,030.00 1,006,000.00 (15,970.00) 6,000.00 N/A Wells Fargo FHLB 0.400% 0.587% 01/29/2021 01/29/2026 295,000.00 259,420.05 295,000.00 (35,579.95) - 01/29/2023 Wells Fargo FHLB 0.400% 0.525% 02/09/2021 02/09/2026 470,000.00 411,809.30 470,000.00 (58,190.70) - 02/09/2023 Wells Fargo FHLB 0.750% 1.432% 04/29/2021 04/29/2026 400,000.00 361,144.00 400,000.00 (38,856.00) - 12/29/2022 Wells Fargo FHLB 0.650% 1.069% 06/30/2021 06/30/2026 300,000.00 263,457.00 300,000.00 (36,543.00) - 12/30/2022 Wells Fargo FHLB 0.700% 1.281% 09/30/2021 09/30/2026 250,000.00 219,652.50 250,000.00 (30,347.50) - 12/30/2022 Wells Fargo CD's 2.550% 2.550% 06/17/2022 12/18/2023 245,000.00 239,602.65 245,000.00 (5,397.35) - N/A Wells Fargo CD's 0.300% 0.300% 01/08/2021 01/08/2024 245,000.00 232,904.35 245,000.00 (12,095.65) - N/A Wells Fargo CD's 0.450% 0.450% 04/14/2021 04/15/2024 245,000.00 230,611.15 245,000.00 (14,388.85) - 02/14/2023 Wells Fargo CD's 2.800% 2.800% 06/17/2022 06/17/2024 245,000.00 237,941.55 245,000.00 (7,058.45) - N/A Wells Fargo CD's 0.550% 0.550% 08/02/2021 08/05/2024 245,000.00 228,014.15 245,000.00 (16,985.85) - N/A Wells Fargo CD's 1.100% 1.100% 01/31/2022 01/31/2025 245,000.00 226,206.05 245,000.00 (18,793.95) - 01/31/2023 Wells Fargo CD's 1.600% 1.600% 02/23/2022 02/24/2025 245,000.00 228,332.65 245,000.00 (16,667.35) - N/A Wells Fargo CD's 3.100% 3.100% 06/15/2022 06/16/2025 245,000.00 235,214.70 245,000.00 (9,785.30) - N/A Wells Fargo CD's 3.100% 3.100% 06/15/2022 06/16/2025 245,000.00 235,214.70 245,000.00 (9,785.30) - N/A Wells Fargo CD's 3.300% 3.300% 08/26/2022 08/26/2025 245,000.00 235,775.75 245,000.00 (9,224.25) - N/A Wells Fargo CD's 1.000% 1.000% 05/19/2021 05/19/2026 245,000.00 214,967.90 245,000.00 (30,032.10) - N/A Wells Fargo CD's 1.000% 1.000% 07/28/2021 07/28/2026 245,000.00 212,760.45 245,000.00 (32,239.55) - N/A Wells Fargo CD's 1.050% 1.050% 08/08/2021 08/25/2026 238,000.00 206,998.12 238,000.00 (31,001.88) - N/A Wells Fargo CD's 1.000% 1.207% 07/31/2021 07/13/2028 245,000.00 201,152.35 245,000.00 (43,847.65) 12/13/2022 Broker Total 49.3% 9,138,000.00 8,679,777.87 9,154,034.39 (496,775.02) 16,034.39 Cetera Investment Services Money Market 0.110% 0.110% N/A N/A - 22,563.71 - - - N/A Cetera Investment Services Municipal Bonds 3.650% 3.004% 12/20/2018 02/01/2023 250,000.00 249,262.50 256,165.00 (6,902.50) 6,165.00 N/A Cetera Investment Services Municipal Bonds 3.240% 3.240% 11/17/2017 02/15/2023 80,000.00 78,904.00 69,633.48 9,270.52 (10,366.52) N/A Cetera Investment Services Municipal Bonds 3.075% 3.236% 12/20/2018 06/01/2023 50,000.00 49,369.00 49,746.15 (377.15) (253.85) N/A Cetera Investment Services Municipal Bonds 5.290% 2.724% 04/18/2019 06/01/2023 260,000.00 260,150.80 291,059.96 (30,909.16) 31,059.96 N/A Cetera Investment Services Municipal Bonds 2.500% 3.181% 12/20/2018 08/01/2023 35,000.00 34,292.30 34,320.05 (27.75) (679.95) N/A Cetera Investment Services Municipal Bonds 3.400% 3.148% 12/20/2018 11/01/2023 125,000.00 122,955.00 126,376.25 (3,421.25) 1,376.25 N/A Cetera Investment Services Municipal Bonds 3.400% 3.148% 12/20/2018 11/01/2023 65,000.00 63,936.60 65,715.65 (1,779.05) 715.65 N/A Cetera Investment Services Municipal Bonds 2.854% 3.173% 12/20/2018 02/01/2024 100,000.00 97,364.00 99,605.96 (2,241.96) (394.04) N/A Cetera Investment Services Municipal Bonds 2.977% 3.246% 12/20/2018 03/15/2024 250,000.00 243,742.50 248,743.99 (5,001.49) (1,256.01) N/A Cetera Investment Services Municipal Bonds 1.940% 1.821% 01/13/2020 05/01/2024 65,000.00 62,294.05 65,570.70 (3,276.65) 570.70 N/A Cetera Investment Services Municipal Bonds 5.742% 3.658% 04/11/2019 08/01/2024 190,000.00 192,348.40 208,924.00 (16,575.60) 18,924.00 N/A Cetera Investment Services Municipal Bonds 2.400% 2.908% 08/05/2022 08/15/2024 50,000.00 47,874.50 50,070.17 (2,195.67) 70.17 N/A Cetera Investment Services Municipal Bonds 2.402% 2.926% 08/05/2022 10/01/2024 125,000.00 119,331.25 124,674.19 (5,342.94) (325.81) N/A Cetera Investment Services Municipal Bonds 2.528% 1.918% 01/13/2020 12/01/2024 100,000.00 95,073.00 102,999.53 (7,926.53) 2,999.53 N/A Cetera Investment Services Municipal Bonds 1.319% 4.407% 09/26/2022 12/01/2024 50,000.00 46,367.50 47,238.35 (870.85) (2,761.65) N/A Cetera Investment Services Municipal Bonds 3.922% 3.429% 12/20/2018 12/01/2024 204,000.00 200,087.28 208,181.10 (8,093.82) 4,181.10 N/A Cetera Investment Services Municipal Bonds 4.400% 3.221% 04/11/2019 07/01/2025 500,000.00 482,715.00 539,101.11 (56,386.11) 39,101.11 07/01/2023 Cetera Investment Services Municipal Bonds 5.640% 3.007% 04/18/2019 08/15/2025 205,000.00 178,542.70 169,737.95 8,804.75 (35,262.05) N/A Cetera Investment Services Municipal Bonds 3.743% 2.740% 04/18/2019 09/15/2025 215,000.00 207,917.90 228,334.53 (20,416.63) 13,334.53 N/A Cetera Investment Services Municipal Bonds 3.379% 1.934% 08/19/2019 10/01/2025 310,000.00 296,062.40 339,739.18 (43,676.78) 29,739.18 N/A Cetera Investment Services Municipal Bonds 2.727% 2.271% 03/03/2022 12/01/2025 335,000.00 307,731.00 342,781.72 (35,050.72) 7,781.72 N/A Cetera Investment Services Municipal Bonds 5.600% 1.186% 07/28/2020 12/01/2025 45,000.00 45,830.70 55,250.55 (9,419.85) 10,250.55 N/A Cetera Investment Services Municipal Bonds 4.250% 3.258% 04/11/2019 01/01/2026 500,000.00 487,540.00 529,769.03 (42,229.03) 29,769.03 N/A Cetera Investment Services Municipal Bonds 2.420% 1.175% 10/06/2020 03/01/2026 100,000.00 90,177.00 106,734.28 (16,557.28) 6,734.28 N/A Cetera Investment Services Municipal Bonds 1.609% 1.124% 09/24/2020 04/01/2026 285,000.00 254,524.95 292,370.10 (37,845.15) 7,370.10 N/A Cetera Investment Services Municipal Bonds 6.690% 3.356% 04/18/2019 04/15/2026 60,000.00 49,046.40 47,545.20 1,501.20 (12,454.80) N/A Cetera Investment Services Municipal Bonds 5.900% 1.451% 07/28/2020 06/15/2026 75,000.00 77,121.75 93,741.75 (16,620.00) 18,741.75 N/A Cetera Investment Services Municipal Bonds 0.000% 1.415% 08/13/2020 07/01/2026 100,000.00 82,402.00 92,037.00 (9,635.00) (7,963.00) N/A Cetera Investment Services Municipal Bonds 3.250% 2.903% 04/18/2019 08/01/2026 500,000.00 467,060.00 514,790.69 (47,730.69) 14,790.69 N/A Cetera Investment Services Municipal Bonds 2.116% 3.307% 06/07/2022 08/01/2026 75,000.00 67,440.00 71,565.00 (4,125.00) (3,435.00) N/A Cetera Investment Services Municipal Bonds 2.150% 2.203% 07/01/2019 12/01/2026 40,000.00 36,136.80 40,150.64 (4,013.84) 150.64 N/A Cetera Investment Services Municipal Bonds 1.664% 1.150% 08/27/2020 09/01/2026 225,000.00 198,506.25 231,696.00 (33,189.75) 6,696.00 N/A Cetera Investment Services Municipal Bonds 2.375% 1.816% 09/04/2019 12/01/2026 90,000.00 81,200.70 93,395.70 (12,195.00) 3,395.70 N/A Cetera Investment Services Municipal Bonds 2.350% 2.191% 07/01/2019 12/01/2026 500,000.00 451,790.00 505,385.00 (53,595.00) 5,385.00 N/A Cetera Investment Services Municipal Bonds 3.000% 1.991% 08/19/2019 02/01/2027 50,000.00 46,162.00 53,551.00 (7,389.00) 3,551.00 N/A Cetera Investment Services Municipal Bonds 3.150% 2.034% 08/19/2019 03/15/2027 100,000.00 93,393.00 109,138.50 (15,745.50) 9,138.50 N/A Cetera Investment Services Municipal Bonds 3.332% 3.120% 04/18/2019 04/15/2027 500,000.00 465,630.00 507,783.94 (42,153.94) 7,783.94 N/A Cetera Investment Services Municipal Bonds 3.865% 2.470% 08/19/2019 05/01/2027 55,000.00 53,786.70 60,986.48 (7,199.78) 5,986.48 05/01/2025 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 3.553% 2.289% 08/19/2019 05/01/2027 55,000.00 52,029.45 60,468.04 (8,438.59) 5,468.04 05/01/2026 Cetera Investment Services Municipal Bonds 3.230% 1.828% 08/19/2019 05/15/2027 145,000.00 133,714.65 160,827.31 (27,112.66) 15,827.31 N/A Cetera Investment Services Municipal Bonds 1.925% 1.719% 11/23/2021 06/01/2027 310,000.00 266,525.60 313,447.46 (46,921.86) 3,447.46 Make -Whole Call Cetera Investment Services Municipal Bonds 1.861% 1.254% 06/07/2021 07/01/2027 410,000.00 352,493.40 412,336.71 (59,843.31) 2,336.71 N/A Cetera Investment Services Municipal Bonds 3.000% 3.101% 05/18/2020 09/01/2027 65,000.00 62,327.20 69,180.58 (6,853.38) 4,180.58 09/01/2025 Cetera Investment Services Municipal Bonds 2.817% 2.817% 09/25/2019 10/01/2027 35,000.00 26,850.25 27,969.55 (1,119.30) (7,030.45) 05/01/2025 Cetera Investment Services Municipal Bonds 1.415% 1.793% 11/23/2021 03/01/2028 100,000.00 82,898.00 98,088.31 (15,190.31) (1,911.69) N/A Cetera Investment Services Municipal Bonds 3.270% 2.141% 08/19/2019 03/15/2028 155:000.00 141:916.45 170,805.09 (28,888.64) 15,805.09 09/15/2027 Cetera Investment Services Municipal Bonds 2.974% 2.574% 11/07/2019 04/01/2028 75,000.00 66,726.00 77,253.00 (10,527.00) 2,253.00 N/A Cetera Investment Services Municipal Bonds 2.125% 1.904% 11/23/2021 06/01/2028 110,000.00 92,320.80 111,525.06 (19,204.26) 1,525.06 N/A Cetera Investment Services Municipal Bonds 2.547% 1.240% 08/10/2021 07/01/2028 125,000.00 108,293.75 136,101.16 (27,807.41) 11,101.16 N/A Cetera Investment Services Municipal Bonds 3.140% 2.004% OS/19/2019 08/01/2028 500,000.00 452,715.00 547,105.00 (94,390.00) 47,105.00 08/01/2027 Cetera Investment Services Municipal Bonds 3.000% 2.199% 05/19/2020 08/15/2028 90,000.00 84,962.70 95,401.80 (10,439.10) 5,401.80 08/15/2025 Cetera Investment Services Municipal Bonds 1.692% 1.813% 11/24/2021 10/01/2028 180,000.00 146,678.40 179,188.74 (32,510.34) (811.26) N/A Cetera Investment Services Municipal Bonds 3.000% 1.942% 08/19/2019 06/01/2029 115,000.00 102,039.50 125,961.80 (23,922.30) 10,961.80 N/A Cetera Investment Services Municipal Bonds 4.000% 3.214% 03/22/2021 09/01/2031 60,000.00 55,671.60 64,292.00 (8,620.40) 4,292.00 09/01/2024 Cetera Investment Services Municipal Bonds 3.500% 2.699% 11/23/2021 02/01/2033 50,000.00 45:909.00 54,390.44 (8,481.44) 4,390.44 02/01/2025 Cetera Investment Services Municipal Bonds 3.250% 2.655% 08/19/2019 06/01/2029 75,000.00 69,719.25 79,860.31 (10,141.06) 4,860.31 OZ01/2025 Cetera Investment Services Municipal Bonds 3.125% 2.303% 11/23/2021 10/01/2034 50,000.00 44,338.00 54,773.69 (10,435.69) 4:773.69 04/01/2027 Cetera Investment Services Municipal Bonds 3.125% 2.456% 11/23/2021 OZ01/2035 50,000.00 44,120.00 54,236.11 (10,116.11) 4,236.11 OZ01/2026 Broker Total 50.7% 9,619,000.00 8,938,882.64 9,967,822.04 (1,051,503.11) 348,822.04 TOTAL INVESTMENTS 100.0% 10/31/2022 % of 9/30/2022 % of Monthly Maturity Current Value Product Type Total Value Total Total Value Total Change Lessthan 1year $4,693,140.81 26.6% ME Money Market $45,082.21 0.3% $21,988.65 0.1 % $23,093.56 1 - 2 years 2,118,920.15 12.0% CD's 3,165,696.52 18.0% 3,191,359.36 18.0% (25,662.84) 2-3years 2,667,509.63 15.1% Government Bonds 5,491,562.85 31.2% 5,498,576.00 31.1 % (7,013.15) 3 - 4 years 4,277,589.37 24.3% '.: Municipal Bonds 8,916,318.93 50.6% 8,988,270.79 50.8% 71,951.86 4-5years 2,122,039.75 12.0% TOTAL $17,618,660.51 100.0% $17,700,194.80 100.0% $81,534.29 5+years 1,739,460.80 9.9% TOTAL $17,618,660.51 100.0% Municipal Bonds Money Market03� $5,000,000.00 „ 50.6% CD's$4,693,141 18.0% $4,500,000.00 $4,277,589 $4,000,000.00 .,. ... ...... ...... ...... ...... ....... $3,500,000.00 ,:. $3,000,000.00 $2,667,510 v $2,500,000.00 ___ _._._ _ _ _ __._._._.__._._._ ------- _ _ _ _ _ __._._._, _ _ _ __._._._._._._._,. $2,118,920 $2,122,040 $2,000,000.00 ....,..,, ........ ....... .,..,....,..,..,.. .......... .......... 46 $1,171319,..,..,-1 ,1 $1,500,000.00 "" ----- - -- $1,000,000.00 $500,000.00........... $0.00 .....y, ... .....:::: ...., ..... ..,,...... y ..... .1..... .7 .... ....„w:: Less than 1-2years 2-3years 3-4years 4-5years 5+years Government Bonds year 31.2% ELECTRIC DIVISION Operating Revenue October 2022 CLASS AMOUNT KWH /KWH Street Lights $22.78 418 $0.05450 Electric Residential Service $408,521.87 3,518,711 $0.11610 All Electric Residential Service $16,644.01 143,827 $0.11572 Electric Small General Service $144,961.68 1,342,596 $0.10797 Electric Large General Service $617,604.16 6,569,730 $0.09401 Electric Large Industrial Service $707,958.05 8,641,000 $0.08193 Total $1,895,712.55 20,216,282 $0.09377 Power Adjustment $0.00691 Rate Without Power Adjustment $0.08686 Electric Division Year -to -Date M2022$A--t 02021$A--t ■2022KWH110 02021 KWH110 26,000,000 25,000,000 24,000,000 23,000,000 22,000,000 21,000,000 20,000,000 19,000,000 18,000,000 17,000,000 16,000,000 15,000,000 14,000,000 13,000,000 12,000,000 11,000,000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Street Lights Residential All Elec. Small Gen. Large Gen. Large For Resale Total Resid. Srv. Srv. Industrial NOTE: Sales for resale includes capacity sales and market sales. NATURAL GAS DIVISION Operating Revenue OCTOBER 2022 CLASS AMOUNT MCF /$ MCF Residential $224,400.49 22,917 $9.79188 Commercial $164,725.15 20,492 $8.03851 Large Industrial $41,874.23 5,141 $8.14515 Large Industrial Contracts $413,580.42 68,959 $5.99748 Total $844,580.29 117,509 $7.18737 Fuel Adjustment-$1.42000 Rate Without Fuel Adjustment $8.60737 Natural Gas Division Year -to -Date ® 2022 $ Amount 0 2021 $ Amouni ■ 2022 MCF 132021 MCF 12,000,000 11,000,000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Gas Residential Gas Commercial Large Industrial Large Industrial Total Contracts Work Order Descr�i tion 12201 Plant 1 Asphalt Parking Lot 12202 Control Room A/C 12203 Plant 2 Air Dryer 12204 Cooling Tower Repairs 12205 Power Plant Exhaust Fan and Controls 12206 Plant 2 Unilux Boiler Electric Production Total Total Materials Labor Budgeted Actual Difference $ 150,000.00 $ - $ 150,000.00 $ 120,543.00 $ (29,457.00) 16,000.00 3,000.00 19,000.00 12,130.32 (6,869.68) 16,000.00 3,000.00 $ 19,000.00 29,705.92 $ 10,705.92 175,000.00 - $ 175,000.00 19,080.15 $ (155,919.85) 19,000.00 2,000.00 $ 21,000.00 36,275.84 $ 15,275.84 - -- $ - 146,102.00 $ 146,102.00 $ 376,000.00 $ 8,000.00 $ 384,000.00 $ 363,837.23 $ (20,162.77) Work Order Descri tp ion 22103 Feeders 15 & 16 Reconductor 22201 Pole Repair and Replacement 22202 Hutch Sub SCADA 22203 Plant 1 Sub SCADA Relays 22204 3M Sub SCADA 22205 Station Equipment 22206 Right of Way Clearing 22207 Install Duct 22208 Feeder 12A Reconductor 22209 Civil Air Patrol 22210 City Road Projects 22211 New Developments 22212 Feeder 12A Reconductor 22213 EV Charging Station Transformer 22214 Transformer Replacements 22215 Transformer New Developments 22216 Meters 22217 LED Conversion Electric Distribution Total Total Materials Labor Budgeted Actual Difference $ 35,000.00 $ 75,000.00 $ 110,000.00 $ 28,056.76 $ (81,943.24) 15,000.00 - 15,000.00 - $ (15,000.00) 125,000.00 - 125,000.00 - $ (125,000.00) 80,000.00 16,000.00 96,000.00 180,088.07 $ 84,088.07 40,000.00 5,000.00 45,000.00 22,181.00 $ (22,819.00) 10,000.00 - 10,000.00 1,123.90 $ (8,876.10) 15,000.00 65,000.00 80,000.00 114,621.96 $ 34,621.96 30,000.00 20,000.00 50,000.00 107,858.20 $ 57,858.20 7,000.00 2,000.00 9,000.00 12,137.70 $ 3,137.70 10,000.00 10,000.00 20,000.00 22,494.62 $ 2,494.62 50,000.00 - 50,000.00 64,206.36 $ 14,206.36 15,000.00 7,000.00 22,000.00 8,659.46 $ (13,340.54) 10,000.00 1,000.00 11,000.00 - $ (11,000.00) 40,000.00 14,000.00 54,000.00 - $ (54,000.00) 50,000.00 50,000.00 24,621.35 $ (25,378.65) 30,000.00 - 30:000.00 13,586.58 $ (16,413.42) 175,000.00 _. _ ..._._._._ 35,000.00 _ .._.... 210,000.00 189,095.59 $ (20,904.41) $ 737,000.00 $ 250,000.00 $ 987,000.00 $ 788,731.55 $ (198,268.45) Work Order Description 52103 Natural Gas Service Truck 52201 EV Fast Charger 52202 EV Level 2 Charger 52203 Replace #037 Dump Truck 52204 Replace #130 52205 Replace #948 52206 Paint Booth Administrative Total Total Budgeted Actual Difference $ 72,000.00 $ 14,527.35 $ 57,472.65 60,000.00 51,019.00 8,981.00 10,000.00 - 10,000.00 66,950.00 - 66,950.00 75,190.00 - 75,190.00 75,190.00 - 75,190.00 2,000.00 - 2,000.00 $ 361,330.00 $ 65,546.35 $ (295,783.65) Natural Gas Work Total Total Order Descrr tion �_ Materials Labor Bu eted Actual Difference 62109 Isolated Main Replacement (Btn Barley & Gler $ 27,500.00 $ 5,000.00 $ 32,500.00 $ 4,790.12 $ (27,709.88) 62201 2 12" Valves, Vacuum Purging, Pigging Lat Lin( 800,000.00 5,000.00 805,000.00 228,793.22 (576,206.78) 62202 Specific Gravity Meter 50,000.00 500.00 50,500.00 - (50,500.00) 62203 Pipeline Satellite Imagery 26,500.00 1,000.00 27,500.00 21,630.00 (5,870.00) 62204 Misc Developments and System Improvement 50,000.00 10,000.00 60,000.00 15,855.63 (44,144.37) 62205 City Projects 15,000.00 6,500.00 21,500.00 27,106.20 5,606.20 62206 50 psig Improvement Project -Distribution 520,000.00 5,000.00 525,000.00 - (525,000.00) 62207 Regulator Station Improvements 20,000.00 5,000.00 25,000.00 - (25,000.00) 62208 50 psig Improvement Project- DRS 230,000.00 1,000.00 231,000.00 - (231,000.00) 62209 Service Lines 57,000.00 35,000.00 92,000.00 58,051.19 (33,948.81) 62210 Meters, AMI, and All Fittings 150,000.00 4,000.00 154,000.00 49,306.13 (104,693.87) 62211 Residential Regulators 9,000.00 - 9,000.00 - (9,000.00) 62212 Industrial Metering and Regulation 20,000.00 3,500.00 23,500.00 8,747.49 (14,752.51) 62213 CP AMI Monitors, AMI Pressure Monitors 50,000.00 3,000.00 53,000.00 10,942.51 (42,057.49) $ 2,025,000.00 $ 84,500.00 $ 2,109,500.00 $ 425,222.49 $ (1,684,277.51) ,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. Investment Policy v. Purchasing Policy/Credit Cards/Fixed Assets vi. Service Beyond City Limits of Hutchinson vii. 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. 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. II. SCOPE 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. C)R.IFrTI\/F 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 in state 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 118A". 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 Hutchinson Utilities Commission Investment Policy Page 4 HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY Securities will be given preference when the yields are equal to or greater than alternative investments. 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. Collateral ization 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 collateral ization 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. VIII. SAFEKEEPING AND CUSTODY 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 Hutchinson Utilities Commission Investment Policy Page 5 HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY the issuers, maturity dates, interest rates, CUSIP number, or other distinguishing marks. IX. DIVERSIFICATION 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 Deposit or 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. Hutchinson Utilities Commission Investment Policy Page 6 HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY APPENDIX A — 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 11A or 356A. (b) For the purposes of sections 118A.02 and 118A.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 2; 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.01 to 118A.06 or other applicable law; or (3) both designate depositories and make investments as provided in this subdivision. Hutchinson Utilities Commission Investment Policy Page 7 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 118A.04 and 118A.05. History: 1996 c 399 art I s 3 118A.03 WHEN AND WHAT COLLATERAL REQUIRED. Subdivision l.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 15,16; 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 I Hutchinson Utilities Commission Investment Policy Page 9 HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY 118A.04 INVESTMENTS. Subdivision 1.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. 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 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 (b) any mortgage derivative security that: (1) has an expected average life greater than ten years; (2) has an expected average life that: Hutchinson Utilities Commission Investment Policy Page 10 HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY (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 118A.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. (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: 1996 c 399 art I s 5 Hutchinson Utilities Commission Investment Policy Page 11 HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY 118A.05 CONTRACTS AND AGREEMENTS. Subdivision l.May enter into. In addition to other authority granted in sections 118A.01 to 118A.06, government entities may enter into contracts and agreements as follows. Subd. 2.Repurchase agreements. Repurchase agreements consisting of collateral allowable in section 118A.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: (1) shares of a Minnesota joint powers investment trust whose investments are restricted to securities described in this section and section 118A.04; (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 118A.04; Hutchinson Utilities Commission Investment Policy Page 12 HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY (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. 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 6; 1997 c 219 s 1; 2000 c 493 s 1; 2005 c 152 art I s 2 118A.06 SAFEKEEPING; ACKNOWLEDGEMENTS. Investments, contracts, and agreements may be held in safekeeping with: (1) any Federal Reserve bank; (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 7; 2010 c 234 s 2 Hutchinson Utilities Commission Investment Policy Page 13 HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY 118A.07 ADDITIONAL INVESTMENT AUTHORITY. Subdivision 1.Authority provided. As used in this section, "governmental entity" means a city with a population in excess of 200,000 or a county that contains a city of that size. 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; and (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; (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 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 Hutchinson Utilities Commission Investment Policy Page 14 HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY 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 118A.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 118A.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 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. History: 1996 c 399 art I s 8 Hutchinson Utilities Commission Investment Policy Page 15 HUTCHINSON UTILITIES COMMISSION INVESTMENT POLICY 118A.08 NO SUPERSEDING EFFECT. Except as provided in Laws 1996, chapter 399, article 1, section 11, sections 118A.01 to 118A.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 Amended March 30, 2022 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 $25.00. 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 $25.00, 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 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. Payments of HUC Payables BOARD ACTION REQUESTED: Approve Policy Changes Amended November 2, 2024-2 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 20222023. This policy shall be reviewed on an annual basis. HUTCHINSON UTILITIES COMMISSION�1` Board Action Form �rMturscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Non -Waiver of Tort Liability Limits for General Liability Presenter: Jeremy Carter Agenda Item; Type: Time Requested (Minutes): 2 New Business Attachments: BACKGROUND/EXPLANATION OFAGENDA ITEM: As part of the League of Minnesota Cities Insurance Trust general liability insurance renewal for the period January 2023 through December 2023, 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 2023 through December 2023 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 the member's effective date of coverage. Return completed form to your underwriter or email to pstechklmc.org. 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. 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 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. LEAGUE OF MINNESOTA CITIES 145 University Avenue West II° III°III: (651) 281-1200 FX° (651) 281-1298 INSURANCE TRUST St. Paul, Minnesota 55103 11 F"W (800) 925-1122 www.Imc.org LMCIT Member Name: 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: November 23, 2022 Signature: Position: HUTCHINSON UTILITIES COMMISSION Board Action Form r�turit 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 $7,492.23 as shown on the attached spreadsheet. Past amounts written off are listed below. 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 Fiscal Impact: Included in current budget:Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: WRITE OFFS FOR NOVEMBER 2022 Total Electric Bankruptcy 20415 $203.27 $85.06 $203.27 $85.06 Deceased 70380 $161.17 $106.20 31565 $9.06 $9.06 $170.23 $115.26 Non -Payment 30975 31192 80580 121412 140540 190016 280370 280410 280555 280600 280630 310051 350465 370815 420432 420464 453992 1002184 190525 371058 31187 260263 191027 300460 31095 470307 420432 280425 320145 420552 260284 70110 162010 350609 420337 420339 60445 120040 300105 $52.23 $52.23 $29.43 $29.43 $904.60 $501.29 $20.11 $20.11 $283.31 $283.31 $110.28 $52.34 $293.86 $221.70 $179.27 $63.49 $691.38 $267.35 $424.53 $397.74 $267.81 $234.75 $141.93 $72.33 $106.15 $82.31 $6.69 $6.69 $18.83 $18.83 $67.26 $67.26 $24.45 $24.45 $132.30 $132.30 $172.53 $172.53 $201.47 $201.47 $79.47 $27.38 $48.17 $48.17 $40.48 $40.48 $161.40 $127.66 $205.65 $106.74 $258.20 $135.87 $136.09 $136.09 $167.73 $79.01 $349.56 $95.98 $37.41 $37.41 $99.12 $99.12 $24.91 $24.91 $27.85 $27.85 $98.32 $98.32 $253.38 $253.38 $11.66 $11.66 $177.91 $177.91 $29.93 $29.93 $783.07 $694.06 $7,118.73 $5,153.84 Gas Last Pay $118.21 12/1/2021 $118.21 $54.97 7/1/2016 $0.00 10/12/2021 $54.97 $0.00 5/9/2016 $0.00 12/7/2021 $403.31 3/2/2016 $0.00 NONE $0.00 11/4/2015 $57.94 3/15/2016 $72.16 11/12/2015 $115.78 4/12/2016 $424.03 12/30/2015 $26.79 9/6/2016 $33.06 7/25/2016 $69.60 3/11/2016 $23.84 7/11/2016 $0.00 1/16/2021 $0.00 11/10/2020 $0.00 8/17/2021 $0.00 5/2/2022 $0.00 7/20/2021 $0.00 10/5/2016 $0.00 8/5/2016 $52.09 10/24/2016 $0.00 11/8/2016 $0.00 8/12/2016 $33.74 12/5/2016 $98.91 11/18/2016 $122.33 1/17/2017 $0.00 2/2/2017 $88.72 1/18/2017 $253.58 1/20/2017 $0.00 2/24/2017 $0.00 4/26/2021 $0.00 2/5/2021 $0.00 3/7/2022 $0.00 5/13/2021 $0.00 3/22/2022 $0.00 4/8/2021 $0.00 NONE/DEPOSIT $0.00 3/16/2022 $89.01 9/29/2021 $1,964.89 Grand Total $7,492.23 $5,354.16 $2,138.07 HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Approve Re -Working of Cooling Tower Piping Plant 1 For Engine Removal Presenter: Mike Gabrielson Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: This is for the removal of U3, U4, and U8. The cooling water pipping from the cooling tower needs to be removed from these units and looped back to the cooling tower. The cooling tower will be down and drained during this time for Phase 1 of the cooling tower repair so this is a good time to do this work. Bids from the job came from Pioneer Power and Corval. Pioneer Power was the low bid BOARD ACTION REQUESTED: Approve Req 009373 for Re -Working of Cooling Tower Piping Plant 1 For Engine Removal Fiscal Impact: $38,500 Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: O�.v HUTCHINSION UTILITIES PURCHASE ORDER HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4121 SUPPLIER VENDOR: 007462 PIONEER POWER INC. 2500 VENTURA DRIVE SAINT PAUL, MN 55125 SHIP TO: Hutchinson Utilities Commission 175 Michigan Street SE Hutchinson, MN 55350 email: huc-ap@ci.hutchinson.mn.us DATE P.O. No. 009373 Supplier Phone: (651) 488-5561 Fax: (651) 488-2652 Email: GARY.RICHARDS@PIONEERPOWER.COM Terms - N30 Ship Via - BILL TO: Hutchinson Utilities Commission 225 Michigan Street SE Hutchinson, MN 55350 email: huc-ap@hutchinsonmn.gov Item No. No. Description Qty Unit Due Date Unit Price Lead Time Ext. Amount 1 COOLING WATER PIPING DEMO RE -WORK- 1.00 EA 11/27/2022 38,500.00 20 38,500.00 MFG. PART: W.O. NUM: NONE RCVD QTY & DATE: Acct: 1-00-107-343-0000-12208 38,500.00 Subtotal $38,500.00 Sales Tax (6.875%) $2,646.88 Freight $0.00 Total $41,146.88 Date Printed: 11/07/2022 Requisitioned By: mgabrielson Page: 1/1 III��II�III Ill�lll � ,�, ■ November 3, 2022 Hutchinson Utilities Commission 44 4ch Ave. NE Hutchinson, MN 55350 Attn: Mike Gabrielson Dear Mike, 2500 Ventura Drive Woodbury, MN 55125 Phone: (651) 488-5561 Fax: (651) 488-2652 www.pioneerpower.com We propose to furnish labor, material, and supervision to install the referenced project with the following clarifications: Inclusions - Demo of 3 @ 12" BFVs and install of Blinds - Demo of 18" pipe and install of blind - Tie 6" unit 8 piping together - Demo of existing tower water pipe - Install of new 8" pipe into existing 14" CTR pipe - Assumption that all demo pipe/valves will stay on -site and disposed by HUC - Work to be completed in 2-week window on 5-8s from 11/28 to 12/9 Fvrliieinne - Isolating & draining existing systems - Any Electrical/Controls work - Permit/Bond Lump Sum Total = $38,500.00 Sincerely, 574V R"4'b ltd Project Manager PIONEER POWI_�',R, INC 701-371-0342 An Equal Opportunity Employer C VAL G P" 100Ah'11 E III. l°w 1921. WE BUILD CONFIDENCE October 24, 2022 Hutch Utilities 44 4th Ave N E Hutchinson, MN 55350 Attn: Mike Gabrielson The undersigned does hereby provide the following proposal for the Scope of Work in accordance with the Project Documents and Proposal Clarifications as stated herein. We will provide all necessary labor, tools, and materials to complete the work as detailed below. Scope of Work: • Remove 3 — 12" valves on pump and blind off flanges on piping side • Remove small section of 18" and install blind flange • Loop 2 — 6" lines together to maintain flow, weld 6" 90's • Remove old pump header and install new 8" header and tie in to 18" to maintain flow, no valves to changed • Remove 2 — 2" connections and add 2 — 4" connections and valve for future filter connection Exclusions: • Overtime • Asbestos • Insulation • Dumpsters • Painting • Demo of existing piping, per walk through plant personal to do demo • Electric • Controls • Pumps, pump bases, and pump specialties Clarifications: Our proposal is based on the existing equipment and hardware is in reasonable good condition for disassembly and reuse. Deviations from the existing conditions could result in additional charges for labor, tooling and/or replacement. All work is assumed to be performed during normal business hours (7AM — 3:30PM). Pricin : Price................................................................................................................................ $ 48,656.00 Please feel free to contact me with any questions. GORVAL CONSTRUCTORS, INC. 116-33 EU'I..TIS STREET, ST. IP'AUL, MN 55108 1 P 651.645.0491 VJ'W^dW.00RVALGNam'0UR.C"0M CORVAL GROUP' 100 Y 1 CWS, , 1EES L 1,921 Sincerely, CORVAL CONSTRUCTORS, INC. Dana Scherer I dschererCCCOrvalProup.cOrn Project Manager D 651.605.2456 1 C 612.221.1174 651.642.5555 - HVAC/ Plumbing 800.279.9031 - Ammonia This Proposal is valid for (30) calendar days. This Proposal is further conditioned upon either the execution of the following Acceptance Agreement or the execution of a mutually acceptable contract. This Proposal shall be considered incorporated by reference, whether attached or not, to any subsequent contract, purchase order or agreement. ACCEPTANCE AGREEMENT By signing below, Customer authorizes Corval Constructors, Inc. to perform the Scope of Work as proposed above subject to the following Terms and Conditions. This Acceptance Agreement shall be binding on both parties until a mutually acceptable contract is executed, if any. Terms and Conditions: 1. The Acceptance Agreement Amount will be the amount proposed by Corval Constructors, Inc. 2. Customer agrees to make payments to Corval Constructors, Inc. within (30) calendar days from the date of each invoice. If the duration of the Scope of Work is greater than one month, invoices for work completed will be submitted to the Customer on a monthly basis. 3. Customer will provide Corval Constructors, Inc. reasonable access to the work areas, including the use of existing facilities and utilities by Corval Constructors, Inc. and its subcontractors. 4. Corval Constructors, Inc. shall not be liable to the Customer for any delay, loss or damage caused in whole or in part by the unavailability of machinery, equipment, or materials; strikes, lockouts, or other labor unrest; riots, wars, or other civil unrest; acts of God, fire, theft or malicious acts; corrosion, normal wear and tear or any other cause beyond the control of Corval Constructors, Inc. 5. This Acceptance Agreement shall be governed, interpreted and enforced under the laws of the State of Minnesota. 6. Customer may order changes in the Scope of the Work upon the mutual agreement of an equitable adjustment in the Acceptance Agreement Amount. 7. The schedule for the performance of the Scope of Work shall be established by the mutual agreement of both parties and shall be binding on both parties. 8. Corval Constructors, Inc. shall maintain insurance of such types and in such amounts as is commercially reasonable in connection with its Work hereunder and will provide Customer a Certificate of Insurance evidencing such coverage upon request. Corval Constructors, Inc.'s liability shall be limited to available insurance proceeds. Building owner is to carry fire, property and other necessary insurance. Building owner is to provide safe work area with free access to carry out above work. 9. The Customer is responsible for all asbestos, lead and other hazardous material testing, removal, and subcontractors. 10. Upgrading of existing systems to meet the most current codes is limited to the scope of work detailed above. 11. All Work shall be performed during normal workday (7:00 am to 3:30 pm M-F) on straight time unless otherwise noted. 12. Drain down and refilling of piping systems by others unless noted above. 13. On all accounts over (30) days, Customer agrees to pay all reasonable collection fees and/or attorney fees. All accounts past due are subject to interest at the maximum legal rate. 14. Market Condition Alert: Due to volatile market conditions, all material quotes have limited validity, which may be subject to price increases pasted along to Customer. 15. THIS PROPOSAL IS CONTINGENT ON A LACK OF IMPACT BY THE CORONAVIRUS NATIONAL EMERGENCY. Due to the existing coronavirus pandemic and resulting consequences, which include shut downs of definite and indefinite durations by the federal, state and local governments, quarantines, business shut downs, transportation interruptions, disruptions in the supply chain of certain materials, supplies or equipment, disruptions to public C a R V Aservices ternporaryr)suspensbnsl of work emsftei(ar ihf nn3vaijabitty erAneduc vaflabitity of wan:poVRA Ahe4 u 1 parties agree if Corval is hindered, pit,; sd�y(tycJ, in the commencement or progress of the work for a cause arising from or related to the Pandemic, including but not limited to any of the examples above, Corval shall be entitled to an extension of the Contract time. Furthermore, to the extent the project is impacted by CORVAL GROUP' increased costs associated with the high demand for specified materials or any proposed substitute approved by Contractor or Owner, or if the project is suspended or experiences any other similar cost increase outside the control of Corval, Corval shall be entitled to additional compensation. ACCEPTANCE OF PROPOSAL Corval Constructors, Inc.'s Proposal and the Terms and Conditions above are hereby accepted by Customer. Corval Constructors, Inc. is authorized to proceed with the Scope of Work as provided herein. Payment will be made as outlined above. Authorized Signature Printed Name Date Title CORVAL CONSTRUCTORS, VNC. I 16:35 ElJ'STIS STREET, 'ST. IP'AUL, MN 55108 I P 551.645.0451 V4ww.C1SRVALG1R0LJP. "d7M HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Approval of Requisition 009374 to WSB for 2023 Regulatory Program Updates Presenter: John Webster Agenda Item Type: Time Requested (Minutes): 3 New Business Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The Natural Gas Division is required to update the Division's Operations and Maintenance Manual, Emergency Response Plan and Transmission Integrity Management Plan (TIMP) due to the following new rules promulgated by PHMSA: 1. "Requirements of Valve Installation and Minimum Rupture Detection Standards", Issued April 8, 2022 (also know as the "Valve Rule"), and 2. "Safety of Gas Transmission Pipelines: Repair Criteria, Integrity Management Improvements, Cathodic Protection, Management of Change, and Other Related Amendments", issued August 24th, 2022 (also know as "RIN-2"). WSB proposed to have the Operations and Maintenance Manual and Emergency Plan updates completed by April 10, 2023. WSB proposes to have the Transmission Integrity Management Plan (TIMP) updates completed by May 24, 2023. WSB proposes to complete the Initial Risk Assessment for HUC's one HCA by December 31, 2023. Engineering work in 2023 budget. BOARD ACTION REQUESTED: Approval of requisition 009374. Fiscal Impact: $45,730 Included in current budget: Yes Budget Change: No PROJECT SECTION: Total Project Cost: Remaining Cost: f. d .11 HUTCHINSON UTILITIES WSI3 701 XENIA AVE S SUITE 300 GOLDEN VALLEY, MN 55416 Note Description: 2023 Regulatory Updates PURCHASE REQUISITION HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 Date Requisition No. 11/07/2022 009374 Required by: Requested by: JWebster Item No. part No. Description Qty Unit Due Date Unit Price Ext. Amount OPERATIONS AND MAINTENANCE MANUL UPDATES - 1 MFG. PART: 1.00 EA 04/10/2023 $12,940.000 $12,940.00 EMERGENCY RESPONSE PLAN UPDATES - MFG. PART: 2 1.00 EA 04/10/2023 $1,900.000 $1,900.00 TRANSMISSION INTEGRITY MANAGEMENT PLAN- UPDATES 3 MFG. PART: 1.00 EA 04/24/2023 $12,660.000 $12,660.00 RISK MODEL DEVELOPMENT AND ONE RISK - MODELASSESSMENT 4 MFG. PART: 1.00 EA 12/31/2023 $18,230.000 $18,230.00 Total: 45,730.00 Date Printed: 11/07/2022 Requisitioned By: JWebster Page: 1/1 IIIIIIIIiii;iIiii Ir F I November 3'", 2022 John Webster, Director, Natural Gas Division Hutchinson Utilities Commission 225 Michigan Street SE Hutchinson, MN 55350 Re: 2023 Regulatory Program Updates Dear Mr. Webster, WSB is pleased to present this proposal to assist Hutchinson Utilities Commission (HUC) with the updates to their regulatory program manuals per two, new rules by the Pipeline and Hazardous Materials Safety Administration's (PHMSA): • "Requirement of Valve Installation and Minimum Rupture Detection Standards", issued April 8th, 2022 (also known as the "Valve Rule"), and • "Safety of Gas Transmission Pipelines: Repair Criteria, Integrity Management Improvements, Cathodic Protection, Management of Change, and Other Related Amendments", issued August 24'h, 2022 (also known as "RIN-2") These new rules will require HUC's regulatory manuals be modified to incorporate the new procedural requirements. The following procedural manuals are included in this proposal to be updated: • Operations & Maintenance Manual (O&M) • Emergency Response Plan (ERP) • Transmission Integrity Management Plan (TIMP) A detailed scope and cost breakdown is included in the following pages. Once again, thank you for the opportunity to support Hutchinson Utilities Commission with their regulatory program. We look forward to the next steps. Should you have any questions please do not hesitate to contact me at (865) 317-2545. Sincerely, Brandi P. Wolfe Regulatory Compliance Manager HUC_2023 Regulatory Program Updates �� f' �� ^��S r r Operafior"is & Mair'it8i i i i c e �,A a iU4[ (O&M\ U�dates: ° New definitions (§192.3). ° Updated |BR'd industry references (§1S2.7). ° Expanded requirements for PHK8GAnotifications (§1S2.1D). ° Development offormal management nfchange (MC}C)procedure (§192.13). • Expansion of transmission line valve requirements (§192.179). ° Expanded pipe installation requirements (§182.319). ° Expanded cathodic protection requirements (Subpart |): o External coating application (§192.461). o External coating monitoring/namediation (§192.485). o Interference surveys (§102.473). n Internal corrosion monitoring (Q182.478), and o Remedial requirements (§102.485). ° Update the change in valve spacing required for class.location changes (§192.610), ° Extreme weather monitoring and remedial measures (§102.613). ° Post failure & incident investigation requirements (§193.817). ° Rupture mitigation valve requirements (§192.834). ~ Rupture identification & response times (§1Q2.83G). ° Remediotionand repair requirements (§§192.710. 192.711. 192.714). ~ Expanded transmission line valve maintenance (§1Q2.745).and ° Expanded predicted failure pressure requirements (§192.712) ° Expansion ofcurrent requirements to establish and maintain communication with the appropriate public safety answer points (typically 8-1-1). * Emergency operations requirements, and ~ Rupture identification procedures. �r"'Ifr � '�"'y agerTler"It :rbr'i \A D\ kJ d a t e S ° Additional threat identification &mva|usdion categories: o Manufacturing, o Welding, o Operational orMaintenance Mishaps, and o Design orConstruction Mistakes. ° Expansion ofdata integrated into risk models: o Pipe diameter, wall thickness, seam type, and joint factor; n Manufacturer and manufacturing date, including manufacturing data and records; o Material properties ino|uding, but not limited to, gnodo. specified minimum yield strength (SKAYS), and ultimate tensile strength; o Equipment properties; o Year ofinstallation; o Bending method; o Joining method, including process and inspection results; o Depth cfcover; o Crossings, casings (including if shorted), and locations of foreign line crossings and nearby high voltage power lines; o Hydrostatic nrother pressure test hiohory, including test pnauaunao and test |nmko or foi|unao, failure causes, and nopminn; o Pipe coating methods (both manufactured and field applied), including the method or process used to apply girth weld coating, inspection reports, and coating repairs; o Goi|.bnokfiU; o Construction inspection reports, including but not limited to: HU{-2O23Regulatory Program Updates � o Post baokfUcoating surveys; o Coating inspection (leeping"or"holiday inspeoion")reports; o Cathodic protection installed, including, but not limited to, type and location; • Coating type; o Gas quality; n Flow rate; o Normal maximum and minimum operating presmurmm, including maximum allowable operating pressure (MAOP); o Class location; o Leak and failure history, including any in-service ruptures prleaks from incident reportm, abnormal operations, safety -related conditions (both reported and unreported) and failure investigations required by§192.G17.and their identified causes and consequences; o Coating condition; o Cathodic protection (CP)system performance; o Pipe wall temperature; o Pipe operational and maintenance inspection reports, including, but not limited to: • Data gathered through integrity assessments required under this part, including but not limited to, in -line inspections, pressure tests, direct assessments, guided wave ultrasonic testing, orother methods; • Close interval survey (C|S)and electrical survey results; • CP rectifier readings; • CPtest point survey readings and locations; • Alternating current, direct current, and foreign structure interference surveys; • Pipe coating sun/eys, including surveys tedetect coating damage, dimbmnded coatings, or other conditions that compromise the effectiveness of corrosion protection, ino|uding, but not limited to, direct current voltage gradient or alternating current voltage gradient inspections; m Results of examinations of exposed portions of buried pipelines (e.g., pipe and pipe coating condition, see § 192.459), including the results of any non- destructive examinations of the pipe, seam, or girth weld (i.e. bell hole inspections); • Stress corrosion cracking excavations and findings; • Selective seam weld corrosion excavations and findings; � Any indication of seam cracking; � Gas stream sampling and internal corrosion monitoring reeu|ta, including cleaning pig sampling results; o External and internal corrosion monitoring; o Operating pressure history and pressure fluctuations, including an analysis of effects of pressure cycling and instances ofexceeding MA0Pbyany amount; o Performance of regulators, relief valves, pressure control devices, or any other device to control nrlimit operating pressure toless than yNA[>P; m Encroachments; n Repairs; o Vandalism; o External forces; o Audits and reviews; o Industry experience for incident, |eak, and failure history; o Aerial photography; and o Exposure tonatural forces inthe area ofthe pipeline, including seismicity, geology, and soil stability ofthe area. • Validation ofrisk data, m Analyze spatial relationships of potential risks, • Analyze the likelihood of failure due to individual and overlapping threats, m Account for uncertainties inthe risk data and model, • Additional plastic pipe threats: 0 Poor joint fusion practices, HUC-2023 Regulatory Program Updates a Pipe with poor slow crack growth resistance, o Brittle pipe, ® Circumferential cracking, o Hydrocarbon softening, o Internal & external loads, o Longitudinal & lateral loads, o Proximity to elevated heat sources, and o Point loading. • Replaced incorporated by reference documents (ASME/ANSI B31.8S to NACE SP0206) for direct assessments: o Internal Corrosion Direct Assessment (ICDA), and o Stress Corrosion Cracking Direct Assessment (SCCDA) • Repairs require TVC documentation, • Expansion of Immediate, One -Year, and Monitored conditions • Expansion of preventative & mitigative measure determination and documentation, and • Clarifications to low stress assessments. These new manual requirements will require HUC to have a risk assessment model. WSB will develop a risk model for use by HUC that incorporates the new requirements in the RIN-2 rule. WSB will also research risk assessment software and solutions that could more efficiently incorporate these requirements. If no other solution is discovered, WSB will incorporate the new requirements into an Excel spreadsheet risk model for HUC's future use. An initial risk assessment completion for all HUC's one (1) HCA is also included in this proposal. These proposed dates are driven by compliance deadlines in PHMSA's rulemaking. • Operations & Maintenance Manual (O&M) — Complete by April 10, 2023 • Emergency Response Plan (ERP) — Complete by April 10, 2023 • Transmission Integrity Management Plan (TIMP) — Complete by May 24, 2023 o Initial Risk Assessment for one HCA — Complete by December 31, 2023 A s s u r-, f p l L o t, s All draft documents and comments will be transmitted electronically in a Microsoft Word compatible format for comment and review. Final procedural documents will be transmitted electronically in Microsoft Word and Adobe compatible formats for record retention and future modification. Final risk model will be transmitted electronically in Excel compatible formats (or other, if discovered and approved). a The proposal is summarized as a Time & Materials (T&M), not -to -exceed (NTE) cost estimate. & Maintenance (O&M) Manual Updates Emergency Response Plan (ERP) Updates Transmission Integrity Management Plan (TIMP) Updates jRisk Model Development & One Risk Model Assessment HUC 2023 Regulatory Program Updates $12,940 $1,900 $12,660 $18,230 John Webster From: Sent: To: Cc: Subject: Attachments: Brandi Wolfe <BWolfe@wsbeng.com> Friday, November 4, 2022 10:58 AM John Webster Luis Sacramento 2023 Manual Updates and Risk Model HUC_2023 Manual Updates_221104.pdf f° ""I""E'ItINAllll. EJMAIIIIL" ALER"IIU"': This message originated from outside the City of Hutchinson email system. Unless you recognize the sender and know the content, DO NOT click links or open attachments. Good morning, John, Please find attached a proposal to update Hutchinson Utilities's regulatory manuals to include requirements from PHMSA's Valve Rule and RIN-2. These rules will affect three manuals, O&M, Emergency Response, and the TIMP. And will also require that a risk model be developed. In the development of that model, I've also included the hours to perform the initial risk assessment on HUC's only HCA to date. We'll talk to you in a few minutes if you'd like to dive into any particular area. Thanks! Brandi Wolfe Regulatory Compliance Manager 865.317.2545 (o) WSB I wsbeng.com wsb For a list of WSB employee licenses and certifications visit here.