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01-30-2002 HUCM Regular Meeting January 30, 2002 Members Present: Vice President Craig Lenz; Secretary Donald Walser; Commissioner Roger Gilmer; Attorney Marc Sebora; General Manager Clarence Kadrmas; Business Manager Patrick Spethman, and Mayor Torgerson. Vice President Lenz called the 3:00 p.m. meeting to order. Secretary Walser made a motion to approve the Minutes of December 26,2001. Commissioner Gilmer seconded the motion and it passed unanimously. Commissioner Gilmer made a motion to ratify the payment of bills in the amount of $2,257,426.28 (detailed listing is in payables book). Secretary Walser seconded the motion and it passed unanimously. After review of the financial statement and the Budget Year-to Date, Secretary Walser made a motion to approve them. Commissioner Gilmer seconded the motion and it passed unanimously. The McLeod County Veterans Park Committee was welcomed to the meeting. They gave a presentation on the new Veterans Park. The Committee made a request for funding, and was informed that would be better discussed with City Council. Secretary Walser made a motion to Advertise for Bids for the Hutchinson Substation Circuit Breakers. Seconded by Commissioner Gilmer seconded the motion and it passed unanimously. Because of thefts occurring at the center, Secretary Walser made a motion to approve a work order for an upgrade of building security in the amount of $20,000.00. Seconded by Commissioner Gilmer the motion passed unanimously. Commissioner Gilmer made a motion to approve Requisition #15179 to GE Packaged Power for Unit 1 modifications. Seconded by Secretary Walser the motion passed unanimously. Commissioner Gilmer made a motion to approve Requisition #15187 to Okay Construction for replacement of 8 poles on the 230KV Line. Seconded by Secretary Walser, the motion passed unanimously. The work was not completed in 2001 because of weather. Secretary Walser made a motion to approve Requisition Numbers 15189 and 15190 to Perkins Inc. for the replacement of trucks #24 and #32. Commissioner Gilmer seconded the motion and it passed unanimously. Commissioner Gilmer made a motion to approve Requisition 15206 to Forcier- Marty's Roofing for Plant #1. Secretary Walser seconded the motion and it passed unanimously. Boiler and Machinery Equipment Insurance was discussed. Action will be taken at the February meeting. Commissioner Gilmer made a motion to approve the Natural Gas Emergency Plan and the Operations and Maintenance Manual for 2002 updates. Secretary seconded the motion and it passed unanimously. Commissioner Gilmer will attend the February 6, 2002, 8:30 am. Labor/Management meeting. President Wetterling and Secretary Walser will be attending the February 14, 2002, Labor Mediation meeting at 10:00 am. The 3M Transformer is now scheduled to arrive March 12, 2002. The Natural Gas Transmission Line, Certificate of Need, is still progressing at the Minnesota Public Utilities Commission. Business Manager Spethman will present a new budget payment policy change to the Commission in February. Marc Sebora will write a draft ordinance and present it at the February meeting requesting the City of Hutchinson to require excavation contractors to acquire licenses. Secretary Walser made a motion to approve UBS PaineWebber as a depository. Commissioner Gilmer seconded the motion and it passed unanimously. There being no further business, Secretary Walser made a motion to adjourn. Commissioner Gilmer seconded the motion and it passed unanimously. Donald H. Walser, Secretary Attest: Craig R. Lenz, Vice President Y-5 Regular Meeting January 30, 2002 Members Present: Vice President Craig Lenz; Secretary Donald Walser; Commissioner Roger Gilmer; Attorney Marc Sebora; General Manager Clarence Kadrmas; Business Manager Patrick Spethman, and Mayor Torgerson. Vice President Lenz called the 3:00 p.m. meeting to order. Secretary Walser made a motion to approve the Minutes of December 26, 2001. Commissioner Gilmer seconded the motion and it passed unanimously. Commissioner Gilmer made a motion to ratify the payment of bills in the amount of $2,257,426.28 (detailed listing is in payables book). Secretary Walser seconded the motion and it passed unanimously. After review of the financial statement and the Budget Year -to Date, Secretary Walser made a motion to approve them. Commissioner Gilmer seconded the motion and it passed unanimously. The McLeod County Veterans Park Committee was welcomed to the meeting. They gave a presentation on the new Veterans Park. The Committee made a request for funding, and was informed that would be better discussed with City Council. Secretary Walser made a motion to Advertise for Bids for the Hutchinson Substation Circuit Breakers. Seconded by Commissioner Gilmer seconded the motion and it passed unanimously. Because of thefts occurring at the center, Secretary Walser made a motion to approve a work order for an upgrade of building security in the amount of $20,000.00. Seconded by Commissioner Gilmer the motion passed unanimously. Commissioner Gilmer made a motion to approve Requisition #15179 to GE Packaged Power for Unit 1 modifications. Seconded by Secretary Walser the motion passed unanimously. Commissioner Gilmer made a motion to approve Requisition #15187 to Okay Construction for replacement of 8 poles on the 230KV Line. Seconded by Secretary Walser, the motion passed unanimously. The work was not completed in 2001 because of weather. Secretary Walser made a motion to approve Requisition Numbers 15189 and 15190 to Perkins Inc. for the replacement of trucks #24 and #32. Commissioner Gilmer seconded the motion and it passed unanimously. 4�p Commissioner Gilmer made a motion to approve Requisition 15206 to Forcier- Marty's Roofing for Plant #1. Secretary Walser seconded the motion and it passed unanimously. Boiler and Machinery Equipment Insurance was discussed. Action will be taken at the February meeting. Commissioner Gilmer made a motion to approve the Natural Gas Emergency Plan and the Operations and Maintenance Manual for 2002 updates. Secretary Walser seconded the motion and it passed unanimously. Commissioner Gilmer will attend the February 6, 2002, 8:30 a.m. Labor /Management meeting. President Wetterling and Secretary Walser will be attending the February 14, 2002, Labor Mediation meeting at 10:00 a.m. The 3M Transformer is now scheduled to arrive March 12, 2002. The Natural Gas Transmission Line, Certificate of Need, is still progressing at the Minnesota Public Utilities Commission. Business Manager Spethman will present a new budget payment policy change to the Commission in February. Marc Sebora will write a draft ordinance and present it at the February meeting requesting the City of Hutchinson to require excavation contractors to acquire licenses. Secretary Walser made a motion to approve UBS PaineWebber as a depository. Commissioner Gilmer seconded the motion and it passed unanimously. There being no further business, Secretary Walser made a motion to adjourn. Commissioner Gilmer seconded the motion and it passed unanimously. I•• Donald H. alser, Secretary January 21, 2002 TO: Hutchinson Utilities Manager and Commission Members — Mr. Clarence Kadrmas, General Manager Mr. David Wetterling, Chairman Mr. Paul Ackland Mr. Roger Gilmer Mr. Craig Lenz Mr. Donald Walser Gentlemen: As a member of the McLeod County Veterans Park Committee, I, Roger K. Olson, along with Don Merkins and 011ie Johnson, would like to appear before your Commission to ask for a favor and answer any questions you may have. Before I proceed, the Park Committee wishes to thank the Hutchinson Utilities for their part in making the Park a reality. The many compliments we have received to date tells us that this Park was long overdue as a lasting tribute, not only to McLeod County Veterans, but to all who put on the uniform to serve our great Country. To date, $302,550 has been spent to bring the Park to its present condition. Approxi- mately $162,000 has been donated in time, labor, and materials for a total of $464,550. We will be finishing the Park this Spring with another $90,000 in monuments, benches, tables, fountain and miscellaneous. When finished, it will be one of the finest tourist attractions in the Upper Midwest. We would ask you and work with you on a plan that will be good for all. Each day, when it becomes dark, the Park lights will come on and remain on until dawn. This will be ongoing and our funds will then be exhausted. We are a 5013C and the Park involves the entire county. When it is completed, it will be turned over to the Hutchinson Park and Recreation Department for permanent care. To help the City of Hutchinson Park and Recreation to maintain this Park, we have agreed in principal to furnish $4,000 a year so this Park can be groomed and beautiful year around. We look forward to meeting with the commission and will provide answers to any questions you may have. For God and Country, Roger K. Olson ZIP - `= ~ IL It was emotional. It was inspiring. It, was long overdue. \9e, the McLeod County Veterans Association, began construction in late 2000 of the concrete pad on �ich the - *� K460A3 Battle Tank will bo placed inlhe Veterans Memorial Park o[ McLeod County. However, [fie concrete pad ixonly the beginning nfu park which will honoru|| veterans from McLeod County. Cbn,/mchnn will ,oxume this spring; dedication ceremonies are scheduled R/rYc(nmn'x Dx}\ November 11, 2(X)|. The park will provide these [7eutun:x: » -an avenue o[flags monuments dedicated un the wars MW Vm*at in which we've participated o *M60A3 tank >-,t shelter >-msurommfacilities >- hcncbesouwbichwacmxbundneflect »~purking|m| )O-convcnien| location ud acen|un/be Luce Line Trail, ( allowing trail users to visit the park while walking --' rvonmQund hiking We thank the City oy Hutchinson for providing 2.7 acres n[ land, for insuring our park and for committing onits 1STAVENUE maintenance. Thm park has un estimated construction cost of $261,000. As VVc thank you Korsuppnuio" Veterans Memorial Park of' ' veterans, we Are always willing m step forward hndonate McLeod County. Yourgcncmxi|y Will ensure that nurvcx:ruoo our share. VYe are asking today for your financial support. are publicly honored and remembered, Vo|ocuno Memorial Park of McLeod County is u nonprofit y4*nouo Beach, nsi�en/ 50i(c)(3)or�unizu�ion so ix\undoduc�ih|c ` ` ' v=temn,Memorial n'm^rmu^.^/Cvw`/y A^ receipt will hn provided upon your request. Advertisement for Bids for Hutchinson Substation Circuit Breakers Hutchinson Utilities Commission Hutchinson, Minnesota Notice is hereby given that the Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota, hereinafter referred to as the Owner, will receive sealed Bids at the Hutchinson Utilities office until 2:00 p.m. on the 21St day of February, 2002, and will publicly open and read aloud such Bids on the following work and equipment: "Hutchinson Substation Circuit Breakers" Proposals shall be properly endorsed and delivered in an envelope marked, "Hutchinson Substation Circuit Breakers" and shall be addressed to: Hutchinson Utilities Commission of the City of Hutchinson, 225 Michigan Street SE, Hutchinson, Minnesota 55350. All proposals shall be submitted in duplicate on the Bidder's own letterhead in facsimile of the Proposal Form enclosed in the Specifications, or by utilizing the Proposal Form enclosed with the Specifications by typing the official name of the Bidder at the top of the form. Each proposal should be accompanied by a Bid Bond, made payable to the Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota, in the amount of five per cent (5 %) of the Bid, as a guarantee that the Bidder will enter into the proposed Contract after his Bid shall have been accepted. No Bidder may withdraw his Bid or Proposal for a Period of thirty (30) days after date of opening of Bids. At the aforementioned time and place, or at such later time and Place as the Owner then may fix, the Owner will act upon Proposals received and with its sole discretion may award Contract(s) for the furnishing of said equipment. The work shall be started within ten (10) days after award of Contract(s). Specifications and Plans are available at the Office of the Hutchinson Utilities, 225 Michigan Street, Hutchinson, Minnesota 55350. The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota reserves the right to reject any and all bids, or bid irregularities. By Cr R. Le ice Pres' ent Date / - '3 0 1 d2— ATTES ED By iL� Donald H. Walser, Secretary Date �-- i x .0 c 0 0 CL a co co U) CD v 3 > m m { D y 0 v CD N N X v o C n � D w 40 j CD cc CA cn A O O O O O N CD 3 U n 3 3 0 Z 0 E z Lel on 46 N i tJt tC OD co 0 z m z m c a z z n v ch ..l C7t M co c v (D Y m T n n C) v M m M z 0 0 C n D A Z C C � � a r Z � X 3 � y D (7 CD 0 =• D a V� y z CA v r a 0 M 0 m n m C r r m z Ok w 0 N N Cit O O N w O 0 O O G O O O m a' 40 W O o O j O O CD 3 U n 3 3 0 Z 0 E z Lel on 46 N i tJt tC OD co 0 z m z m c a z z n v ch ..l C7t M co c v (D Y m T n n C) v M m M z 0 0 D 3 i C n D A Z C C � � r Z � 3 � y D (7 CD 0 =• D a V� y CA D 3 i A m m 0. 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G � v W 0 � Z x Z N .tVO A W Go N co to CD 3 it S � p .. G C� 0 W 0 Z x Z z D D O O O In CO) N n n o O z z n v V V O o Co Co N N CD CD V V1 V V -1 O O O O a a C L S 0 V �71 V V V in o 0 O CD 3 it m o' D 3 U U v D I D 3 u' PIA 0 cn w w 0 C I Z M z ch p c C o r z o y 3 n 3 3 y 0 Z c -o CD n Ti M D n D TI z rt O N O O S � p .. G C� 0 W 0 Z x Z m o' D 3 U U v D I D 3 u' PIA 0 cn w w 0 C I Z M z ch p c C o r z o y 3 n 3 3 y 0 Z c -o CD n Ti M D n D TI z rt O N O O Northern Natural Gas Company P.O. Box 3330 Omaha, NE 68103 -0330 402 - 398 -7200 Date Clarence Patrick Don M January 4, 2002 Don N John Curt Nate Roger. Hutchinson City Council/ Steve Hutchinson Utilities Commission Sue 225 Michigan Street Bev Hutchinson, MN 55350 Garnette Other File Re: Northern Natural Gas and the Proposed Hutchinson Natural Gas Pipeli@&urn To Dear City Council Members and Commissioners, We respectfully provide this correspondence for your collective consideration. This information is intended to reinforce that Northern Natural Gas Company ( "Northern") remains committed to collaborating with the Commission and the City of Hutchinson to provide an economic and reliable alternative to the proposed Hutchinson Natural Gas Pipeline project to connect to the Northern Border Pipeline system. As we trust you are aware, Northern has reliably served the City of Hutchinson for over 40 years. Our entire system is comprised of over 17,000 miles of pipeline and 1,070,000 horsepower of compression. Northern delivers up to 4.3 Bcf per day into the upper Midwest from various supply basins in the U.S. and Canada. This supply diversity provides access not only to the Alberta, Canada supply basin from Northern Border, but also from Great Lakes Gas Transmission and Viking Gas Transmission, in addition to natural gas supplies from the Rocky Mountain, Anadarko /Hugoton and Permian basins in the U.S. Our long- standing relationships with municipal, state, and federal entities, as well as private contractors and landowners, serve to illustrate our continuing commitment to provide the safest natural gas delivery environment possible for the numerous communities we serve through our pipeline. As part of that commitment, Northern spends approximately $200 million annually to maintain the highest integrity of our pipeline facilities. Further, Northern has existing field operations and emergency response system infrastructures in place to quickly respond to and remedy emergency conditions. Northern has the expertise and experience that is invaluable in mitigating the risks associated with the operation of high - pressure pipelines. As a result of the events of Endless possibilities.T°" Hutchinson City Council/ Hutchinson Utilities Commission January 4, 2002 Page 2 of 2 September 11, interstate pipelines have come under more security- related scrutiny than ever. We are committed to maintaining a safe, and economic system that is operating within all of the necessary state and federal regulations that are required now and in the future. We understand that the decision to bypass the Northern system is a complicated process of determining the likelihood of projected economic benefits and associated risks. We know that these decisions will be made with the best interests of Hutchinson and its citizens in mind. In the coming months, we will demonstrate the benefits provided by a Northern solution. Part of the process may include formal regulatory opposition by Northern of the bypass. However, I can assure you that this will be done in a professional manner with the intent of providing benefits to Hutchinson and its citizens, as well as Northern and its customers. Northern would like to provide to the City Council and Commission any information needed in their consideration of the proposed Hutchinson Natural Gas Pipeline. We welcome the opportunity to visit the City of Hutchinson to discuss this further and answer any questions directly. Please feel free to call me at 402- 398 -7402. We look forward to hearing from you in this regard. Sincerely, Dave Neubauer Vice President, Business Development & Marketing cc: Clarence ILaci mas JAN 25 '02 03 :36PM CACT•PAINEWEBBER P.2 UBSJPaineWebber. IMIC'At7Ft1.At I.D. 14UMe6a CA Li J CORPORATE RESOLUTIONS FULLACl;O rTITtF _ � BRANCFI N sAeER F� Hutchinson Utilities Ctxfmission I��ImI i DrInald H. WnlspL histabir cartjly awl I am dte gory of Hutchinson Utilities Coritni_ssi on (' ) a Ml TnlPsot"i Ptihl i r Mi ni iri 1 Rnt-i L,,L dwarow tote nous d ft erntn staff"Plim or Prlba'te) empanAaon dw anw aad and aimm undfir, loss laws cd _. __M, nnocnYn _ ---[OfMaf ANtnioade Aft lemb of date" fiats or P►dasMb and btu the fotlotsurg rmo uoom were dully adopted by ate Board d Omelets m A duty cased MMM9 or by unorAu rd caruad on Jantj 31, 2()()2 tIYMEFIRAIL TM CoroWaWfi OGMM to OWWM tray tepllrrI 19 aatel trtalrrbllfdng rare W tolled raa.+u.a anmtadd St tilBt3 Pel,fewaeaee Imo, a arvaerde+ drgardaN M dtd United states and regpeuad wen ma us SSr.K flea and Mzg W 4* CWMUM ma andfaf bit Msdoeseol hereto, allltldlertear MOM%*. tndumng but not Infield to Pd nwabbar anamaaerad BMrk aitd OW tbbd Ptq► aarvlbe prowuerd taallaafgwlfb ul� PalrraWabbar !. NOW,THMEPORG Bt31rROGLVI19THAT, +) The cowdoon is awitylzed to efilabbin with use P*IMWetrbm am or more a000lera for the puronasd and sale of seclrtws amd curer Prepal late Account )• Property includes, tut a net heeled w. GNUMOe. moray, stntM. 0000, bonds, noun. hMN ax*ads. eanwtmwm. aarnmeiretst paper, cwdh=tn of depeat and odor , carelfrejam aft odor to ads y ueuaYft and oltetartu ty dean in by brokerage hens and any oche prowly that can be nreerdad in the Aecolrt UBS Pailmawabbsr is dasonard an agate of the Corporation for Properly of any nafWa and Is atAndriled to NMWG. heald and dW W any Itrfda. eacrr" Or octet Property wdidn or wldtl><tt IM United tatafes, ragsten d in or banatened into the name of US$ Pawwwlebaer or ra rrorrsteep) or do name at orm or more auslodf rtle or nom+rrrelt t wool, Ues Patnawabber may eidler dlt40Y or through cLEON Ond reran u raganred eeekntba or depoart the aaril a mpreeanang such seawstam, M bulk with a canal cwgfkvta dw=MY. so thee tidrnur d osreretdle of such sdorattes nay be nude by nooldtatpug JIM on to eases of aerie depaaaaly. Z) The Corporation Shan grant a soeratly interest to U55 PableWebWf!< as sat MM in greater detail in din Aaoount Agroemerd (Including Sit doeransftse rfnCgrlrgreled thereMt) goweswrg the Atdr'gan as Atrisfdsd lrWn tlfrl0 to tiara. Tote Co/porabar snits goad a seeuray hitless to atlt adMlarirrt a left AS may be SPNMed in 20 AOmLE1 AWO"OM and Any addltla ld egreswm fbf are types Of lain Idl a sat dettipriated IN the Cmporeoon a corporate onboard bars Isle m diti dry Thtt t aperdtldn is autl+eliaed m tea as AoOOlrn and aervim elMmad by udS Panswablow to (a) 00 start. (W bads on tTrn o' (e) borrow andillar obtain txetbt (includt+9 All mAfnM at troaft 0** I OMS M aroma none lime to trees floret U6B Pawewebbar and 9MIJImSe efdlgabom of Mors to U136 POWWOW, in UNted stelea dollars or any brijap Ouneney and (d) pfadi mtrtaaae, alleo a •udti)Set to a sommy Interest or lien any pop" of any dart d ft Cohim aloft ea saw* for any Mb ft of fro COMMES r, 4) Earn of Ins oonaora is cdom named in the sipiefts below ( each. "Vier whet oft" deel9namd under session number 5 below, herstnafmr baled an Autlfatlzed Person) are awwrimd IndidduaWy, without CMMW slglretwe Or oo-srgllatun, to set On behalf 01 the conooranon to (a) Open the Account and. with reepeat to operkrlg the AccmftL to oxsoure On mlhEd Of the Corporation any and all releeant documalm Inc to dear with U65 PaineWebber in OWtraatian with all aspects Of tie Account, with no !brats as TD ameun4 (b) to obtain all such sorwmm as U95 Painswatrber snort off sr, Muolrag but not flailed to the 98t4ft ea set forth under motutldn narbm e below and to purchase lad sell and enter into any lramsocaonn whatsoever in connection web+ PfWerty and (C) to bind the COrpeaseot* in (also= Ot arty agreements entered into pursuant to dsusa (b tide fOffmh Ms (ATIPASTTWOTObEd IG�i " / s Clarence r ' iTvesNarne ww erne a 011reara �..p Patrick E.Spethman, Business Manor rT,soalatae ano The a Of rml la' at 1:1111i (type Name are Tile of orMerl (SWilimre d Offitaf (Yypa Name and Tits of Off4W) 1139sewre of Ofaaafl 5) The Authorized Potions string as above 5peelffed are authonzed to appOrril one M mare attomeys4n4ad or agents to act On bsnalf at the CoMoMll m In the Same capacity as Set tariff tFhdet resolution number A above, and are AUVOM=d to exaaUM end deffver ro UDS PaineWebber any powers Of anomey or other downforn to effm or evidence such appointment- b) UBS PaineWebber is authonaod, bul nix obligated, to deal with each AudhdfRed PeMM Indilndually, as (olrows, subisct to the Carlomoom having completed documentalgn relating to the relevant pro000t5 and SeM00: and subject to U9$ PaineWebbet pefreyY and practice as rn affect from time 10 t+mC: at 10 2GC 01 all Orders for pufQha5e5 and safes arid all inetrUatims Of any nature whatso wer in ednnaoliCn with tine ACCOUht given verbally, in writing• or via Elooffent0 communications by him or her an behalf of the Corporation. 05 the action Of the Cprppranon withoui emit or fury? inquiry as to his or nor authority or Me Ya6dily Of IOgdldy of such atoms under any and all laws, rules and regulations applicable to IMO Corporation and the conduct of Its business Ord Maim b) to receive anv funds, securranx or other property for Ina acgOum of the Corporation: to tow" drafts. C6@m of other funds or properly dblrvered to it for deposll for the account of the Corporation. whether of not endorsed with the name of tea Corporation Oy robber suanill, facsirrift m4Chlfl=l, manual or other signature, and any such endorsement by whanwWYW afthaild small Do the endorsement of Ma COMOrabon. or otnerwse endorsed, or uranoarsod, orOwded that if any suer+ item xhall bear. or 00 a66omOpnleo by directions (by wnOmsOCVer model for deposit to a specrftc aecaum, then effort do=n shell oe to such Specific aocounr, and to Manor written ,nse•u0bans from each Authorized Person to deliver 441W In bearer form, in street cerifficates. +n arty names or in any a" Mannar any funds, seeunnes or other properly, held for %me account of the Corporation: cl to extend loans in connection with the maintenance of a margin accaunr at ether email facility lot the Corporation: d) 10 1~ MastorCartla transactions in Cmallittim With the Account, Including but not limited m use of Me Plallnwin Uastercard' or Mastercafa susinessC8rda1 CI to Manor written instructions from oacm Aurhanlea Person to write checks, drafts, InstrurriAMIA, instruction6 Of OMefa for the payment Or witndrawal of funds drawn an Ina Account or aayaola to the order of the Corporation amid Oaanntt the Signature or signature; now or nerearter atnnonxed by the Corporation wlinOut brnn as to amount, without ingwry and without regaf0 10 Its aopucallon or IMaf 01 at; or06dBas, incidinq crane, checks. instruments. instructions of aratiml for the payment or withdrawal at JAN 25 '02 03 :37PM CACT•PAINEWEBBER P.3 f UBSIPainelAbberr folds drawn or arderse.l to the Order of or In favor of WIV Person who" SOMA" appears thereon or other ~ or nfflc b 10S POInOWsbbsr, cr to any ore► owsom fan or ourph>rsti m for the Personal cram Of aMOM Of any ouch oMker Or agent, opted aho nor be liable for any disposition which any such o f fur of agent shah Mika of as a shy party d AN draft, CrONK w9grun rm Inotrn CUM a order far this patymwa or wltcrawd d funds drawn on the Amunt at payable to the order of the Capohadon or the proceeds tlarsof, naivitmotanding VW aush dtepoeffim may be far tine personal account or benefit or In PsYrr1erht of the individual obligallo n of any such dfloor or agent in UBS PalnsWebber, of allwwiw and to sand all cOnfirrnlocne. tgticea, dnmanm& elatsRentt and Sara► oaMm1tp11caCbno to tie AW alzed Pennon and to the Corpo allon , attention: Patrick E. S tlman - 55350 ;an Of- cF, Hjit-rhin-Qu, mm �—" iaeert name erred d ottiosr and IOCAemf►) f) to am deposit ageourriep to torsip ounencies with any dep0stimfy to Purchase. Sae, trann*. or dh pose of for p seem or dune am" foroo monays, credae or aaetwngs on depoo or Otherwise and an manrtet' of i arumene rewee aosill re thereat by endoraamod or othenw4e, and to OXB*fts and d"V any agreements or Instrtrneres refalmg tb " etch pnrhs oom q} loam In eftOm any at the ataraedd trmneef ISCIM upon fnahucft a oo reed M filly neeeage seafood by h, traemlttsd by any bun or agertdy GI Oemrnuniostlon wtmtwoannar. wMdt U9$ P~ebbpr hellevas In good both ic have been orlgatatsd by an Auderlaed Person 80*19 AS above epwRled, anti (N ;pr�rd N wwithoulr mom ftnewebber AfiqEUN, to WW90 Amounts CCanwl ft ate Pwdcbb Manapans U ( PMP ), PaMSW/bbW SELWnONS. PACE Sommillvlsw and PACE M Mdvh dr) end tO dalapata dudratlon d UeS palrteWgbbar at to a subadwoor In connection wMh any of the above esrrloao. 7) A-nryy �wi-thdraw" d moray, clmdt witting, MaeterOwd porohaees and coin nan•WalL rage bansatdlone frokmfag but not United to 4 W%,G of ergo and oter types of credit Mum" made *= ens to um an tf" of the Corporation wish usd PaineWebber eWebber are ratlGed. cordfrmed and approved. B) WimcOppyy � of the COpo�raiona moan Ilimm rewoldng ng Mom r�ado l eve U8S Pooewsbeer, for any reason, is Uncertain as b be eonCrsrNtg of arivens" of fie VAhorlty, Conform by tress resdUfene or any Other readulio e d the Cohpmbffl, uss Painawebber may roman from In" any action with respect to Ma Amount unel such time as It Is mVd*d tee to No authority and UBS PAI newabbar ON be indertaMeed agavmt and held kwmW s from any came, danand% expenses, on of dhaoage, ineWng legal leas and coft fesuadtq him or arIWO oIA Of im rebating from aaNMO any adlorh. In mm' 'QWOrh d UBS Pain sWeb er 401111119 in relianm upon the foreong resoL oma and the Wcoaadirtp fesciudorhs, It Shall ba hhny, protected In so acting and fns Conporaft agrees to ademrtlfy and Savo Ila- Uss Pwriewebbor from and against any and W1 bas, damage, msbnhy, caama and eMorme whatsoevor aramig by moon of he so acting. AT7Ew=TAAAVMARSIVr 10) Any Authonzed Person is fully anrhoMaad XW empowered to transfer. Convert. tom, see, assign. set moor and deliver any and all sham d Mgo, bents, dloamus�eg, rwma, sumonplion warrants. stoeit Inrohase warrants, "w" of "Obttktees, Or halite► untCerttles now or hwaafar standing in the now of or owned by the Owpoffidw, are to mom. execute and mover, under the ebhporafe a" d the Caporsdon or ouarwim, sty and all wrtten areptsnants of assignment and transfer necopow Or proper to W%CU to the authority hereby conferred. 11) Whenever t We On" be annexed to fury Instrument d assignment end uanom. Otsouled wxouwvt to and In accordance with Celt tgngosg M oluom a crib le of tiro Sawet wy or an Assistant Secremry of the Corporation in orsra at the daft at such cettMOate and such corttPcate shah sat forth Close resdadons and shay Wts dw dheee resdutahlt are in fdi form and effect and shall ado set faith the games of the persorm who are then officers Of fine CWPtrZW. wart an persons 10 Whom such IrROwnent with to annexed cartslcala shall thereafter corns, oho be sntited. within furter inquiry or inve"gatlon and regarMN Of the data of suds callftate. to assume and to act in reliance wan the assumption that the shwas Of Steal Or other wgud-i i tamed in such inoflanefm ware Memoffore duly and property Winder cl, endorsed. Sohn, ss rA4 not aver and dellvead by ore ColporsPOR, and that with respect m such securities the authority of these mMuCrons and of such oilCera is situ in full force and erect. 12) The Seeremq or an Assistant Secretary of the Corporation is ma hound and directed to ow" to UBS PaineWebber, a) that these readhdjons have bW &#V amoptm, are in felt form and effect and are in accordance with the provisions Of applicable few and reguatiorl and the charter and "We Of to CWParadonl b) the ideneess M tine Corporation s Authorized Persons afd, from time b time hereafter, such drones as may occur In Mte WerrtiCes of such Au6mrized Persona as such changes are made; and c) that UBS PaineWebber shell be Icy+ protected In relying an such oertitea M of die Secretary Of Assistant Secretary and shall be Mcfalrnlfied and saved harrows Iran any and all Noss. damage, liability, emu and eMernes whatsoaver resulting from honoring the signature at any Authorized Person so cer"W or rduerg to honor any signature not ao tBrtflsd. I car* Chet More is no prevision In to chanar or by4aws of the Corporation liffang the power of the Board of Oireclom to adopt to foregoing pr for e or m of other then a &)aid DMI M to attuutanaslM , Charter adoptions Of Such reso r - which rsgdras tr I further certty tar die parsers listd above are duly aleOtd or appointed qualified oRinane of to COMOrStim held in the Corporation Cite respective positions Irtdi Am above and Mat se: jurrth1h opposite each respective name a the true and OOfrmrt wwwwre of GUM Pensen, WMIESB my hand and the east or MGIOQ t�f 225 Michi the day or January , ao 02 _ —, (SMMTkAE OF SECRUM" CORKtRAYa SEAL C0 L] January 15, 2002 Marc A. Sebora Anderson, Dove, Fretland, Van Vaulkenburg 101 Main Street South, Suite 201 Hutchinson, MN 55350 RE: Bond Information Dear Mr. Sebora: Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350 -2522 320 - 587- 5151/Fax 320 - 234.4240 I have completed the research you requested of me regarding the availability of bonds to cover construction companies in the event of them digging into a power line and causing a power outage, or some other type of major event. I contacted five insurance /surety companies from across the country. Overall, they all indicated that there more than likely would be some type of bond that could be written by a surety company to cover an event as the one listed above. However, the majority of them also indicated that this type of event should be covered under a construction company's general liability insurance. It was indicated to me that a certificate of insurance provided by the insurance company should be sufficient. It was also noted that applying for a surety is comparable to purchasing credit — not everyone qualifies. For your information, the companies I contacted were as follows: Chubb Companies — Federal Insurance Company; Farmington Casualty Company; Liberty Mutual Insurance; St. Paul Fire & Marine; and, Western Surety Company. If you would like me to obtain any further information, or if you need further clarification regarding the information provided, please let me know. Sincerely, 6 1.� Melissa Starke Administrative Secretary Printed on recycled paper -