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12-26-2001 HUCMRegular Meeting December 26, 2001 Members Present: President David Wetterling; Vice President Craig Lenz; Secretary Donald Walser; Commissioner Paul Ackland; Commissioner Roger Gilmer; Attorney Marc Sebora; General Manager Clarence Kadrmas; Business Manager Patrick Spethman. President Wetterling called the 3:00 p.m. meeting to order. Commissioner Gilmer made a motion to approve the minutes of regular meeting, November 28, 2001. Secretary Walser seconded the motion and it passed unanimously. Vice President Lenz made a motion to approve the minutes of special meeting, December 11, 2001. Commissioner Ackland seconded the motion which passed unanimously. Vice President Lenz made a motion to ratify the payment of bills in the amount of $1,826,207.78 (detailed listing is in payables book). Commissioner Gilmer seconded the motion and it passed unanimously. After review of the financial statements and budget year to date, Commissioner Ackland made a motion to approve them. Seconded by Vice President Lenz, the motion passed unanimously. Customer Jarvis Watnemo presented issues to the Commission on natural gas prices. The fuel cost adjustment answered his concerns. Commissioner Gilmer made a motion to waive bid irregularities and award the Hutchinson Substation Transformer to Waukesha Electric Systems in the amount of $616,100.00. The motion was seconded by Commissioner Ackland and passed unanimously. General Manager Kadrmas informed the commission that the 3M Transformer is now scheduled to be delivered next year. The natural gas transmission line certificate of need was presented to the Public Utilities Commission. There being no further business, Commissioner Ackland made a motion to adjourn. Seconded by Vice President Lenz the motion carried unanimously. Attest: David J Wetterling, President Donald H. Walser, Secretary q-3 Regular Meeting December 26, 2001 Members Present: President David Wetterling; Vice President Craig Lenz; Secretary Donald Walser; Commissioner Paul Ackland; Commissioner Roger Gilmer; Attorney Marc Sebora; General Manager Clarence Kadrmas; Business Manager Patrick Spethman. President Wetterling called the 3:00 p.m. meeting to order. Commissioner Gilmer made a motion to approve the minutes of regular meeting, November 28, 2001. Secretary Walser seconded the motion and it passed unanimously. Vice President Lenz made a motion to approve the minutes of special meeting, December 11, 2001. Commissioner Ackland seconded the motion which passed unanimously. Vice President Lenz made a motion to ratify the payment of bills in the amount of $1,826,207.78 (detailed listing is in payables book). Commissioner Gilmer seconded the motion and it passed unanimously. After review of the financial statements and budget year to date, Commissioner Ackland made a motion to approve them. Seconded by Vice President Lenz, the motion passed unanimously. Customer Jarvis Watnemo presented issues to the Commission on natural gas prices. The fuel cost adjustment answered his concerns. Commissioner Gilmer made a motion to waive bid irregularities and award the Hutchinson Substation Transformer to Waukesha Electric Systems in the amount of $616,100.00. The motion was seconded by Commissioner Ackland and passed unanimously. General Manager Kadrmas informed the commission that the 3M Transformer is now scheduled to be delivered next year. The natural gas transmission line certificate of need was presented to the Public Utilities Commission. A There being no further business, Commissioner Ackland made a motion to adjourn. Seconded by Vice President Lenz the motion carried unanimously. 0 l //� Donald H. Walser, Secretary r i ttest: � David etterling, President 1 J Hutchinson Utilities Commission "Hutchinson Substation Transformer" Bid Tabulation December 18, 2001 11:00 a.m. Company Name Bid Amount Bid Bond Remarks Delivery 46 — 48 weeks Pauwels 101 Rockman Street Winnipeg MB #1 670,379.00 Yes 5% Rich Detwiler Dolan Feldhaus Canada R3T OL7 #2 35,000.00 1250 Helmo Ave Oakdale MN 55128 Delivery 36 weeks ABB Incorporated #1 650,200.00 Yes 5% David Martin 4350 Semple Avenue Primus Marketing St. Louis, MO 63120 -2241 #2 37,518.00 6133 Blue Circle Dr Minnetonka, MN 55343 Delivery 18 — 22 weeks Waukesha Electric Systems #1 606,700.00 No Chuck Healy 1200 Piper Dr ElectroTech, Inc. Milpitas, CA 95035 #2 18,500.00 3268 Winpark Dr Minneapolis, MN 55427 - 2086 Opened by:iG'�l D nald P. Nelson Manager — Electric Division Witnessed By Donald R. M kins Manager - Production Supply Division Pauwels ABB Waukesha Price FOB Pad $650,200.00 $606,700.00 Price FOB Pad (Net 30Day AD) $670,379.00 (Alternate Payment Schedule) $650,854.00 $597,600.00 Price Nearest Rail Site $623,700.00 Shipping FOB Site (est) $26,500.00 Place in Service $35,000.00 $37,518.00 $18,500.00 Delivery Time ARO 48 weeks 36 weeks 22 weeks Warranty 12 Months AID 5 Years AID 5 Years AID (5 year Warranty extra) $15,000.00 No Load Losses 19.5KW 50KW 16.4KW Load Losses 120KW @ 50MVA 89KW @ 50MVA 93.6KW @ 50MVA Aux Losses 10KW 4KW 2KW Impedance 7% 7% 7% Sound Level 74/76/77dBA 83/85186dBA 77/79/80dBA Tertiary Winding 5/6.7/8.4MVA 17/21/28MVA 17123/28MVA Total Weight 175,000 215,000 145,300 Thought Fault Test Adder $190,000.00 ? $300,000.00 Bid Bond Yes Yes Yes Evaluated Losses (30Years) $388,287.00 $321,075.90 $310,682.16 Evaluated Price (30Years) $778,458.84 $698,111.74 $616,100.00 Difference Evaluated $162,358.84 $82,011.74 $0.00 Purchase Price $700,854.00 $687,718.00 $616,100.00 Difference from Low Bid $84,754.00 $71,618.00 $0.00 Recommendation is to award to Waukesha Electric of Waukesha, Wisconsin as per their proposal for Bid item #1 $606,700 and for Bid item #2 $ 18;500 Take the alternate payment method to reduce total contract amount to $616,100 I