05-31-2006 HUCM
Regular Meeting
May 31,2006
Members present: President Craig Lenz; Vice President Donald Walser; Secretary
David Wetterling; Commissioner Steven Cook; Commissioner Dwight Bordson; General
Manager Michael Kumm; Attorney Marc Sebora.
President Lenz called the meeting to order at 3:00 pm.
Manager Kumm gave a follow-up on items requested from last month's meeting: Jan
Sifferath will have the entire report on the 2005-2006 Energy Conservation Rebate
Program at the end of October; a 'charged-off accounts' recap from 2003-2005 was
placed in each Commissioner's mail; the approved changes in the polices and
requirements booklet was only for gas and electric meter locations.
Secretary Wetterling made a motion to approve the minutes of the April 28, 2006
Regular Meeting with amended change in a spelling error. Vice President Walser
seconded the motion and it passed unanimously.
Secretary Wetterling made a motion to close the regular meeting to discuss pending
litigation. Commissioner Cook seconded the motion and it passed unanimously. The
meeting closed at 3:05 p.m.
Commissioner Cook made a motion to move from closed meeting back to open
meeting. Vice President Walser seconded the motion and it passed unanimously. The
meeting reopened at 4:00 p.m.
Commissioner Cook asked about the payment to Utilities Plus - Purchased Power
agreement. This is our retail rate through Xcel Energy. And he asked about the payment
to Total Compliance Solution. This is our drug testing company and it's for the electric
and gas divisions.
Commissioner Cook also asked if the payment for Brian P. Short is our share of the cost
for the condemnation-mediation proceedings, and it is. And he asked about the
payment to Millenium Credit Consultants - Collection Expense. This is our cost for their
services in collections.
Commissioner Bordson asked about the wire transfer to BP Canada Energy Marketing.
BP is our broker/trader in the gas market.
President Lenz asked about the Utilities Plus - Purchased Power payment. This is 1/3 of
our payment. And he asked about the payment to Schmeling Oil - Antifreeze. Steve
Lancaster explained this is to chill the water at the power plant. He also asked about the
payment to MidCountry Bank to replace a lost check. Jan Sifferath will check to find out
what the original payment was for.
Commissioner Bordson made a motion to ratify the payment of bills in the amount of
$3,136,359.65 (detailed listing in payable book). Vice President Walser seconded the
motion and it passed unanimously.
Manager Kumm discussed the financial statements/budget year-to-date. The
accounting model for the rate stabilization fund has been modified and is now booked
as an asset.
President Lenz asked about updating the work order report. This will be updated prior to
the next commission meeting.
We have made some progress in the medical insurance account. The $30,000 error has
not been adjusted out yet.
Vice President Walser made a motion to approve the financial statements/budget year-
to-date. Secretary Wetterling seconded the motion and it passed unanimously.
Steve Lancaster discussed the agreement renewal with Carrier Commercial Service
that was tabled from the April 28, 2006 regular meeting. We now have the option of
buying a 5-year proposal with a savings of 15% or $16,202.25 over five years and it's
based on a 2% yearly increase minus the discount. There is also a provision in the
contract for early termination or out clause. There is over a $70,000 difference in the 5-
year payment compared to the 1-year payment, and we have budgeted $20,000 for this
contract. Steve can work through his budget to pay the 5-year proposal of $91,812.75.
We have worked with Carrier for 14 years and they are a very reliable company.
Secretary Wetterling made a motion to enter into the 5-year proposal with Carrier
Commercial Service. Vice President Walser seconded the motion and it passed
unanimously.
Dave Hunstad presented the policy on parallel generation. Discussion took place as to
adding language and changing language in the policy. Commissioner Cook made a
motion to table the policy on parallel generation until the June meeting. Commissioner
Bordson seconded the motion and it passed unanimously. Dave will work with Attorney
Sebora and the policy on parallel generation will be presented at the June meeting.
Manager Kumm presented Section 3 - Customer Service of the Strategic management
Process. Our overall objective is to increase our customer base. Three areas to improve
on to make this happen are: Reliability; Cost; and Quality of Service. The strategies
have been conducted or are in the process of being conducted. After all nine sections
have been reviewed, a completed book will be made available for each Commissioner.
Jan Sifferath discussed the exempt and non-exempt handbooks. We are not asking for
approval at this time, only to answer questions and welcome input. Several suggestions
were offered and after discussion Commissioner Cook made a motion to table the
approvals of: Changes to Exempt Employee Handbook; and New Non-Exempt
Employee Handbook until the June Commissioners meeting. Commissioner Bordson
seconded the motion and it passed unanimously.
Manager Kumm presented a resolution authorizing HUC as a member of Missouri River
Energy Services appointing Manager Kumm as the representative and Steve Lancaster
as the alternative representative. Vice President Walser made a motion to adopt the
Resolution Authorizing HUC as a Member of Missouri River Energy Services with noted
changes to 'City of Hutchinson' to read 'Hutchinson Utilities Commission'.
Commissioner Cook seconded the motion and it passed unanimously.
Manager Kumm announced that we will get $25,000 from the PUC regarding the
pipeline issues.
Division Reports
Gas - John Webster
Has a DVD on tile issues on the pipeline if the board would like to view it
Electric - Steve Lancaster
Generated Friday through Wednesday - twice for 4 hours and once for 10 hours
Business - Jan Sifferath
Purchasing Agent position has been filled
Interviewing for Energy Conservation Administrator
50% of money spent on the rebate program - 100% of the money spoken for
Legal Update
None
Old Business
Commissioner Cook mentioned that the contract for extra capacity with New Ulm
fell through. That will have no effect on our gas transportation contract we have
with them.
President Lenz asked about the MRES book placed in their mail. It's a resource
plan and certain sections apply to us.
Commissioner Cook will follow-up on an e-mail he received from Redwood Falls
regarding renewable energy.
New Business
None
Commissioner Bordson made a motion to adjourn at 6:20 p.m. Commissioner Cook
seconded the motion and it passed unanimously.
David Wetterling, Secretary
ATTEST
Craig Lenz, President
Regular Meeting
May 31, 2006
Members present: President Craig Lenz; Vice President Donald Walser; Secretary
David Wetterling; Commissioner Steven Cook; Commissioner Dwight Bordson; General
Manager Michael Kumm; Attorney Marc Sebora.
President Lenz called the meeting to order at 3:00 pm.
Manager Kumm gave a follow -up on items requested from last month's meeting: Jan
Sifferath will have the entire report on the 2005 -2006 Energy Conservation Rebate
Program at the end of October; a 'charged -off accounts' recap from 2003 -2005 was
placed in each Commissioner's mail; the approved changes in the polices and
requirements booklet was only for gas and electric meter locations.
Secretary Wetterling made a motion to approve the minutes of the April 28, 2006
Regular Meeting with amended change in a spelling error. Vice President Walser
seconded the motion and it passed unanimously.
Secretary Wetterling made a motion to close the regular meeting to discuss pending
litigation. Commissioner Cook seconded the motion and it passed unanimously. The
meeting closed at 3:05 p.m.
Commissioner Cook made a motion to move from closed meeting back to open
meeting. Vice President Walser seconded the motion and it passed unanimously. The
meeting reopened at 4:00 p.m.
Commissioner Cook asked about the payment to Utilities Plus - Purchased Power
agreement. This is our retail rate through Xcel Energy. And he asked about the payment
to Total Compliance Solution. This is our drug testing company and it's for the electric
and gas divisions.
Commissioner Cook also asked if the payment for Brian P. Short is our share of the cost
for the condemnation - mediation proceedings, and it is. And he asked about the
payment to Millenium Credit Consultants - Collection Expense. This is our cost for their
services in collections.
Commissioner Bordson asked about the wire transfer to BP Canada Energy Marketing.
BP is our broker /trader in the gas market.
President Lenz asked about the Utilities Plus - Purchased Power payment. This is 1/3 of
our payment. And he asked about the payment to Schmeling Oil - Antifreeze. Steve
Lancaster explained this is to chill the water at the power plant. He also asked about the
payment to MidCountry Bank to replace a lost check. Jan Sifferath will check to find out
what the original payment was for.
Commissioner Bordson made a motion to ratify the payment of bills in the amount of
$3,136,359.65 (detailed listing in payable book). Vice President Walser seconded the
motion and it passed unanimously.
Manager Kumm discussed the financial statements /budget year -to -date. The
accounting model for the rate stabilization fund has been modified and is now booked
as an asset.
President Lenz asked about updating the work order report. This will be updated prior to
the next commission meeting.
We have made some progress in the medical insurance account. The $30,000 error has
not been adjusted out yet.
Vice President Walser made a motion to approve the financial statements /budget year -
to -date. Secretary Wetterling seconded the motion and it passed unanimously.
Steve Lancaster discussed the agreement renewal with Carrier Commercial Service
that was tabled from the April 28, 2006 regular meeting. We now have the option of
buying a 5 -year proposal with a savings of 15% or $16,202.25 over five years and it's
based on a 2% yearly increase minus the discount. There is also a provision in the
contract for early termination or out clause. There is over a $70,000 difference in the 5-
year payment compared to the 1 -year payment, and we have budgeted $20,000 for this
contract. Steve can work through his budget to pay the 5 -year proposal of $91,812.75.
We have worked with Carrier for 14 years and they are a very reliable company.
Secretary Wetterling made a motion to enter into the 5 -year proposal with Carrier
Commercial Service. Vice President Walser seconded the motion and it passed
unanimously.
Dave Hunstad presented the policy on parallel generation. Discussion took place as to
adding language and changing language in the policy. Commissioner Cook made a
motion to table the policy on parallel generation until the June meeting. Commissioner
Bordson seconded the motion and it passed unanimously. Dave will work with Attorney
Sebora and the policy on parallel generation will be presented at the June meeting.
Manager Kumm presented Section 3 - Customer Service of the Strategic management
Process. Our overall objective is to increase our customer base. Three areas to improve
on to make this happen are: Reliability; Cost; and Quality of Service. The strategies
have been conducted or are in the process of being conducted. After all nine sections
have been reviewed, a completed book will be made available for each Commissioner.
Jan Sifferath discussed the exempt and non - exempt handbooks. We are not asking for
approval at this time, only to answer questions and welcome input. Several suggestions
were offered and after discussion Commissioner Cook made a motion to table the
approvals of: Changes to Exempt Employee Handbook; and New Non - Exempt
Employee Handbook until the June Commissioners meeting. Commissioner Bordson
seconded the motion and it passed unanimously.
Manager Kumm presented a resolution authorizing HUC as a member of Missouri River
Energy Services appointing Manager Kumm as the representative and Steve Lancaster
as the alternative representative. Vice President Walser made a motion to adopt the
Resolution Authorizing HUC as a Member of Missouri River Energy Services with noted
changes to `City of Hutchinson' to read `Hutchinson Utilities Commission'. a %,''�
Commissioner Cook seconded the motion and it passed unanimously. J4'(,�,
c
Manager Kumm announced that we will get $25,000 from the PUC regarding the
pipeline issues.
Division Reports
Gas - John Webster
Has a DVD on tile issues on the pipeline if the board would like to view it
Electric - Steve Lancaster
Generated Friday through Wednesday - twice for 4 hours and once for 10 hours
Business - Jan Sifferath
Purchasing Agent position has been filled
Interviewing for Energy Conservation Administrator
50% of money spent on the rebate program - 100% of the money spoken for
Legal Update
None
Old Business
Commissioner Cook mentioned that the contract for extra capacity with New Ulm
fell through. That will have no effect on our gas transportation contract we have
with them.
President Lenz asked about the MRES book placed in their mail. It's a resource
plan and certain sections apply to us.
Commissioner Cook will follow -up on an e-mail he received from Redwood Falls
regarding renewable energy.
New Business
None
Commissioner Bordson made a motion to adjourn at 6:20 p.m. Commissioner Cook
seconded the motion and it passed unanimously.
F
David Wqkde-flihT, Secretary
This SERVICE AGREEMENT entered into by and between:
HUTCHINSON UTILITY
225 MICHIGAN STREET
HUTCHINSON, MN 55350
FOR SERVICE AT:
225 Michigan Street
Hutchinson, MN 55350
Contract Number: 553A70043
Proposal Date: May 1, 2006
Hereinafter referred to as
"CUSTOMER"
and
COMMERCIAL SYSTEMS AND SERVICES
Division of Carrier Corporation
Hereinafter referred to as
"CARRIER"
Earn
0
COMMERCIAL SYSTEMS AND SERVICES
SERVICEPLUS
Carrier Corporation Printed in U.S.A. 1298 808 -304
SERVICEPLUS
This SERVICE AGREEMENT shall be administrated by Carrier Commercial Service presently located at:
7320 Oxford St
St. Louis Park, MN 55426 -4513
952- 933 -5300
EQUIPMENT /CONTROLS DEVICE SERVICED
See " Equipment/Controls Device List" section for a list of equipment included in this SERVICE AGREEMENT.
AGREEMENT PRICE
The AGREEMENT PRICE in year one shall be $20,756 payable $5,189 Per Quarter, The TOTAL AGREEMENT
PRICE is $108,015 covering a term of 5 year(s).
PRE - PAYMENT
In the. event CUSTOMER pays the annual AGREEMENT PRICE in advance, the price shall be reduced by 5.00 %.
In the event CUSTOMER pays the entire AGREEMENT PRICE (5 years) in advance, the price shall be reduced by
15.00%
The pre - payment requirements are such that the entire amount must be paid by the CUSTOMER, then a credit will
be issued by CARRIER for the pre - payment discount (5 or 15% as appropirate).
AGREEMENT TERM
This AGREEMENT shall become effective upon May 1, 2006 and shall continue for a 5 year term, and from year -
to -year thereafter. Either party may terminate this AGREEMENT according to the Early Termination Schedule, if
any, or at any time by giving the other party at least thirty (30) days prior written notice.
ACCEPTANCE AND APPROVAL
This shall become a valid AGREEMENT upon signature by CUSTOMER and signature by a CARRIER
representative in the CARRIER Approval blocks below. The undersigned acknowledges and agrees by its signature
that the General Provisions, Scope of Service, and any amendment or addenda prepared by CARRIER with respect
thereto constitutes the entire AGREEMENT. No agent of CARRIER or employee shall have authority to alter or
waive any General Provision unless written approval is obtained from CARRIER headquarters.
SUBMITTED BY: ` DATE: U� i °2eo�
Peter Scott
Execution by Authorized Representatives:
CUSTOMER ACCEPTANCE: CARRIER APPROVAL: '
HUTCHINSON UTILITIRS COMMISSION
Customer Company Name
MICHAEL KUMM
Customer Acceptance (typed /printed name)
COMMERCIAL. SERVICE
Carrier Approval (typed /printed name)
GENERAL MANAGE
itle Title
JUNE 6, 2006
ustomer Acceptance (signature) Date Carrier Approval (signature) Date
Carrier Corporation Printed in U.S.A. 0900 808 -305
SERVICEPLUS
CARRIER CORPORATION
TERMS AND CONDITIONS OF SALE - REPAIR SERVICE
1. PAYMENT AND TAXES — Payment shall be made 1.25% 10 /net 30 days
from date of invoice. Carrier reserves the right to require cash payment or other
alternative method of payment prior to completion of work if Carrier determines,
in its sole discretion, that Customer or Customer's assignee's financial condition
at any time does not justify continuance of the net 30 days payment term. In
addition to the Agreement price, the Customer shall pay Carrier any applicable
taxes or government charges which may be required in connection with the
service or material furnished under this Agreement.
2. WORKING HOURS — All services performed under this Agreement including
major repairs, are to be provided during Carrier's normal working hours unless
otherwise agreed.
3. ADDITIONAL SERVICE — Services or parts requested by Customer in
addition to those specified in this Agreement will be provided upon receipt of
Customer's written authorization and invoiced at Carrier's prevailing labor rates
and parts charges. Additional services or parts shall be supplied under the terms
of this Agreement.
4. EXCLUSIONS — Carrier is not responsible for items not normally subject
to mechanical maintenance including but not limited to: duct work, casings,
cabinets, fixtures, structural supports, grillage, water piping, steam piping, drain
piping, cooling tower fill, boiler tubes, boiler refractory, disconnect switches and
circuit breakers. Carrier is not responsible for repairs, replacements, alterations,
additions, adjustments, repairs by others, unscheduled calls or emergency
calls, any of which may be necessitated by negligent operation, abuse, misuse,
prior improper maintenance, vandalism, obsolescence, building system design,
damage due to freezing weather, chemical /electrochemical attack, corrosion,
erosion, deterioration due to unusual wear and tear, any damage related to
the presence of mold, fungi, mildew, or bacteria, or any other cause beyond
Carriers control.
Carrier is not responsible for the identification, detection, abatement, encapsu-
lating or removal of asbestos, products or materials containing asbestos, or
similar hazardous substances, or mold, fungi, mildew, or bacteria. In the event
that Carrier encounters any asbestos product or any hazardous material in the
course of performing its work, Carrier may suspend its work and remove its
employees from the project, until such product or material, and any hazards
connected with it are abated. Carrier shall receive an extension of time to
complete its work and compensation for delays encountered as a result of such
situation and its correction.
Carrier shall not be required to perform tests, install any items of equipment or
make modifications that may be recommended or directed by insurance com-
panies, government, state, municipal or other authority. However, in the event any
such recommendations occur, Carrier, at its option, may submit a proposal for
Customer's consideration in addition to this Agreement. Carrier shall not be
required to repair or replace equipment that has not been properly maintained.
5. WARRANTY — Carrier warrants that all service provided under this Agreement
shall be performed in a workmanlike manner. Carrier also warrants all Carrier
parts or components supplied hereunder to be free from defects in material and
workmanship. For parts or components determined to be defective within one
year from date of installation or before the termination date of this Agreement,
whichever is earlier, and in the case of service, determined to be defective within
ninety (90) days of completion of that service, Carrier shall at its option repair,
replace, or issue a credit, for any such parts, components or service, provided
they were not damaged, abused, or affected by chemical properties. Any claim for
defective workmanship must be provided to Carrier in writing. THIS WARRANTY
IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESS, IMPLIED OR STATUTORY
INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS
FOR A PARTICULAR PURPOSE. Carrier's obligation to repair, replace or issue
credit for any defective parts, components or service shall be Customer's
exclusive remedy.
6. PROPRIETARY RIGHTS — During the term of this Agreement and in combi-
nation with certain services, Carrier may elect to install, attach to Customer
equipment, or provide portable devices (hardware and /or software) that shall
remain the personal proprietary property of Carrier. No devices installed, attached
to real property or portable device(s) shall become a fixture of the Customer
locations. Customer shall not acquire any interest, title or equity in any hardware,
software, processes, and other intellectual or proprietary rights to devices which
are used in connection with providing service on Customer equipment.
7. DELAYS — Delays caused by conditions beyond the reasonable control of
either party shall not be the liability of either party to this Agreement.
,
COMMERCIAL SERVICE
8. CUSTOMER RESPONSIBILITIES — Customer shall:
• Provide a safe work environment.
• Permit access to Customer's site, and use of building services including but
not limited to: water, elevators, receiving dock facilities, electrical service
and local telephone service.
• Keep areas adjacent to equipment free of extraneous material, move any
stock, fixtures, walls or partitions that may be necessary to perform the
specified service.
• Promptly notify Carrier of any unusual operating conditions.
• Upon agreement of a timely mutual schedule, allow Carrier to stop and start
equipment necessary to perform service.
• Provide adequate water treatment.
• Provide the daily routine equipment operation (if not part of this Agreement)
including availability of routine equipment log readings.
• Where Carrier's remote monitoring service is provided, provide and maintain
a telephone line with long distance direct dial and answer capability.
• Operate the equipment properly and in accordance with instructions.
• Promptly address any issues that arise related to mold, fungi, mildew
or bacteria.
9. EQUIPMENT CONDITION & RECOMMENDED SERVICE — Upon the initial
scheduled operating and /or initial annual stop inspection, should Carrier
determine the need for repairs or replacement, Carrier will provide Customer
in writing an 'equipment condition' report including recommendations for
corrections and the price for repairs in addition to this Agreement.
In the event Carrier recommends certain services (that are not included herein
or upon initial inspection) and if Customer does not elect to have such services
properly performed in a timely fashion, Carrier shall not be responsible for any
equipment or control failures, operability or any long -term damage that may
result. Carrier at its option will either continue to maintain equipment and /or
controls to the best of its ability, without any responsibility, or remove such
equipment from this Agreement, adjusting the price accordingly.
10. CUSTOMER TERMINATION — Customer shall have the right to terminate
this Agreement for Carrier's non - performance provided Carrier fails to cure such
non - performance within 30 days after having been given prior written notice of
the non - performance. Upon early termination or expiration of this Agreement,
Carrier shall have free access to enter Customer locations to disconnect and
remove any Carrier personal proprietary property or devices as well as remove
any and all Carrier -owned parts, tools and personal property. Additionally,
Customer agrees to pay Carrier for all incurred but unamortized service costs
performed by Carrier including overheads and a reasonable profit.
11. CARRIER TERMINATION — Carrier reserves the right to discontinue its
service any time payments have not been made as agreed or if alterations,
additions or repairs are made to equipment during the term of this Agreement
by others without prior agreement between Customer and Carrier.
12. LIMITATION OF LIABILITY — Under no circumstances shall Carrier be held
liable for any incidental, special or consequential damages, including loss of
revenue, loss of use of equipment or facilities, or economic damages based on
strict liability or negligence. Carrier shall be liable for damage to property, other
than the equipment provided under this Agreement, and to persons, to the extent
that Carrier's negligent acts or omissions directly contributed to such injury or
property damage. Carrier's maximum liability for any reason (except for personal
injuries) shall consist of the refunding of all moneys paid by Customer to Carrier
under this Agreement, subject to right of removal and return of equipment
provided under this Agreement to Carrier.
13. WASTE DISPOSAL -- Customer is wholly responsible for the removal and
proper disposal of waste oil, refrigerant and any other material generated during
the term of this Agreement.
14. CLAIMS — Any suits arising from the performance or non - performance
of this Agreement, whether based upon contract, negligence, strict liability or
otherwise, shall be brought within one (1) year from the date the claim arose.
15. GOVERNMENT PROCUREMENTS — Carrier offers standard commercial items
which may not comply with Government specifications. Carrier does not comply
with the Cost Accounting Standards (CAS) nor with the Federal Acquisition
Regulations (FAR). In no event shall Carrier provide any Cost or Pricing Data in
connection with this Agreement or subsequent modifications.
16. SUPERSEDURE, ASSIGNMENT AND MODIFICATION —This Agreement
contains the complete and exclusive statement of the agreement between the
parties and supersedes all previous or contemporaneous, oral or written, state-
ments. Customer may assign this Agreement only with Cartier's prior written
consent. No modification to this Agreement shall be binding unless in writing
and signed by both parties.
Carrier Corporation Printed in U.S.A
C
SERVICEPLUS
GENERAL PROVISIONS
EARLY TERMINATION
In the event of early termination or other breach by the CUSTOMER, CARRIER may, at its option, recover from
CUSTOMER and CUSTOMER agrees to pay any and all amounts which, under the terms of this AGREEMENT,
may be then due or which may have accrued to the date of such termination and also to pay the following
termination charge which is agreed to be a reasonable sum fairly representing actual damages CARRIER would
suffer.
IF THIS AGREEMENT
IS TERMINATED PRIOR TO:
I ST YEAR
2ND YEAR
3RD YEAR
4TH YEAR
5TH YEAR
6TH YEAR
THE TERMINATION CHARGE IS:
$0
$0
$0
$0
$0
$0
In the event of early termination, and the contract has been prepaid by the CUSTOMER, CARRIER will reimburse the
CUSTOMER for the contract amount difference (less the prepayment discount) according to the following schedule.
Service Contract Prepayment Discounts:
Early Cancellation Charges - Assumes contract is cancelled at the end of a contract year causing the discount
schedule to revert to the sliding schedule as listed below.
Total S/A
YEAR 2 YEAR 3
YEAR 4
YEAR 5
Cancelled at the end of year 1 $
Value paid
$17,996.20 $18,354.90
$18,722.10
$19,096.95
Cancelled at the end of year 2 $
fully in
$ (1,482.04) $18,354.90
Payment
$19,096.95
Cancelled at the end of year 3 $
advance
Discount %
Accepted
Discount $
1 yr prepaid
$ 20,756.00
5 %0
$ 19,718.20
$ 1,037.80
2 years prepaid in advance
$ 41,928.00
8 %a
$ 38,573.76
$ 3,354.24
3 years prepaid in advance
$ 63,522.00
11 %
$ 56,534.58
$ 6,987.42
4 years prepaid in advance
$ 85,548.00
13%
$ 74,426.76
$11,121.24
5 years prepaid in advance
$108,015.00
15 %
$ 91,812.75
$16,202.25
Early Cancellation Charges - Assumes contract is cancelled at the end of a contract year causing the discount
schedule to revert to the sliding schedule as listed below.
Carrier Corporation Printed in U.S.A. 1298 808 -306
TOTAL R
$ 72
$ 53
$ 35
$ 17
YEAR 1
YEAR 2 YEAR 3
YEAR 4
YEAR 5
Cancelled at the end of year 1 $
(2,075.60)
$17,996.20 $18,354.90
$18,722.10
$19,096.95
Cancelled at the end of year 2 $
(1,452.92)
$ (1,482.04) $18,354.90
$18,722.10
$19,096.95
Cancelled at the end of year 3 $
(830.24)
$ (846.88) $ (863.76)
$18,722.10
$19,096.95
Cancelled at the end of year 4 $
(415.12)
$ (423.44) $ (431.88)
$ (440.52)
$19,096.95
Carrier Corporation Printed in U.S.A. 1298 808 -306
TOTAL R
$ 72
$ 53
$ 35
$ 17
1
SERV[CEPLUS
EQUIPMENT /CONTROLS DEVICE LIST
Item: Absorption chiller - water /steam, single effect
Quantity: 3
Carrier Corporation Printed in U.S.A. 1298 808 -306
r
'LI
SERVICEPLUS
SERVICE AGREEMENT SUMMARY
Item: Absorption chiller - water /steam, single effect
Quantity: 3
Serial Number(s): 92371, 92372, 92373
Frequency:
Tasks Year 1 Year 2 Year 3 Year 4 Year 5
Annual Maintenance 1 1 I 1 1
Routine Operating Inspection 6 6 6 6 6
Multi -Year Preventative Maintenance 0 1 0 0 0
Carrier Corporation Printed in U.S.A. 1298 808 -306
SERVICEPLUS
TASK ACTION LIST
Item: Absorption chiller - water /steam, single effect
Quantity: 3
Serial Number(s): 92371, 92372, 92373
Frequency:
Task and Actions Year 1
Annual Maintenance 1
REPORT TO CUSTOMER UPON ARRIVAL x
LOCKOUT AND TAG ALL CIRCUITS x
REVIEW AND EVALUATE LOG READINGS x
CHECK GAUGES / INDICATOR LIGHTS x
CHECK ELECTRICAL COMPONENTS x
CHECK SAFETY /OPERATING CONTROLS x
CALIBRATE SAFETY /OPERATING CONTROLS (A/R) x
CHECK DILUTION TIME DELAY x
TIGHTEN ELECTRICAL CONNECTIONS x
CHECK PURGE VACUUM PUMP x
CHECK LEVEL PROBES x
REPLACE SOLUTION FILTER x
CLEAN/REPLACE PURGE BOTTLE x
CHECK CONTACTORS FOR PITTING x
CHECK MACHINE VACUUM x
MAKE EQUIPMENT ADJUSTMENTS AS REQUIRED x
MAKE OPERATION /CONTROL ADJUSTMENTS A/R x
CLEAN UP WORK STATION x
REPORT TO CUSTOMER ON DEPARTURE, ADVISE x
BRUSH AND INSPECT ABSORBER AND CONDENSER TUBES x
SOLUTION SAMPLE & ANALYSIS x
Task and Actions Year 1
Routine Operating Inspection 6
REPORT TO CUSTOMER UPON ARRIVAL x
CHECK GENERAL MACHINE OPERATION x
CHECK SAFETY /OPERATING CONTROLS x
LOG EVAP CHILLED WATER TEMP - IN x
LOG EVAP CHILLED WATER TEMP - OUT x
LOG EVAP REFRIGERANT TEMPERATURE x
LOG EVAP REFRIGERANT SAMPLE S.G. x
LOG EVAPORATOR OVERFLOW (W /A) x
LOG EVAP CHILLED WATER DELTA P x
LOG EVAP REFRIGERANT PUMP PRESSURE x
LOG ABSORBER WATER TEMP - IN x
LOG ABSORBER WATER TEMP - OUT x
LOG ABSORBER SOLUTION LEVEL x
LOG ABSORBER FLOW DELTA P x
LOG GENERATOR PUMP PRESSURE x
LOG ABSORBER PUMP PRESSURE x
LOG COND WATER TEMP - IN x
LOG COND WATER TEMP - OUT x
LOG VAPOR CONDENSATE TEMP x
LOG CONDENSER WATER FLOW DELTA P x
LOG GENERATOR STEAM PRESSURE x
LOG GENERATOR WEAK SOLUTION TEMP IN x
LOG GENERATOR STRONG SOLN TEMP OUT x
LOG REFRIGERANT SATURATION TEMP x
LOG WEAK SOLUTION SATURATION TEMP x
LOG WEAK SOLUTION CONCENTRATION (S.G.) x
LOG STRONG SOLUTION CONCENTRATION x
LOG ABSORBER LOSS x
LOG EVAPORATOR APPROACH TEMP x
LOG ABSORBER APPROACH TEMP x
LOG CONDENSER APPROACH TEMP x
CHECK PURGE OPERATION x
CHECK CONTROLS SYSTEM OPERATION x
CHECK PURGE RATES x
Year 2
I
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
X
X
Year 2
6
x
X
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
X
x
X
X
x
x
x
x
Year 3 Year 4 Year 5
1 1 1
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
X x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
X x x
X x x
Fequency:
Year 3 Year 4 Year 5
6 6 6
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
X x x
x x x
X x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
All Actions under each Task marked 'x' are included except for any items market 'N' (No), 'N /A' (Not Applicable) or ' W /A' (When
Applicable). Items listed under any Task marked 'A/R' (As Required) are to be performed, if required, as determined by Carrier's best judgment
based on actual operating conditions, analysis and/or equipment monitoring.
Carrier Corporation Printed in U.S.A. 1298 808 -306
1
SERV[CEPLUS
CHECK PURGE VACUUM PUMP x x x x x
CHECK ELECTRICAL COMPONENTS x x x x x
INSPECT SEAL WATER SYSTEM x x x x x
CHECK DILUTION TIME DELAY x x x x x
CHECK FLO- TENDER OPERATION x x x x x
MAKE EQUIPMENT ADJUSTMENTS AS REQUIRED x x x x x
MAKE OPERATION /CONTROL ADJUSTMENTS A/R x x x x x
CLEAN UP WORK STATION x x x x x
REPORT TO CUST, ADVISE & OBTAIN SIGNATURE x x x x x
Frequency:
Task and Actions Year 1 Year 2 Year 3 Year 4 Year 5
Multi -Year Preventative Maintenance 0 1 0 0 0
BRUSH EVAPORATOR TUBES x
REPLACE DIAPHRAGMS & SIGHT GLASSES x
CHECK STEAM CONDENSATE TRAPS x
OVERHAUL PUMP(S) & REPLACE BEARINGS x
LEAK TEST WITH NITRO & R -22 x
PERFORM STANDING VACUUM TEST x
All Actions under each Task marked 'x' are included except for any items market 'N' (No), 'N /A' (Not Applicable) or ' W /A' (When
Applicable). Items listed under any Task marked 'A/R' (As Required) are to be performed, if required, as determined by Carrier's best judgment
based on actual operating conditions, analysis and/or equipment monitoring.
Carrier Corporation Printed in U.S.A. 1298 808 -306
SERV[CEPLUS
SCOPE OF SERVICE
PREVENTATIVE MAINTENANCE:
ROUTINE OPERATING INSPECTIONS)
Each Routine Operating Inspection is to consist of the task - actions listed herein for each equipment type and to be
performed at the frequency listed.
ANNUAL PREVENTIVE MAINTENANCE
Each Annual Preventive Maintenance is to consist of pre- scheduled recurring preventive maintenance actions which
are to be performed on a yearly interval determined by equipment operating hours that may be recommended by each
equipment manufacturer. These annual tasks are designed to prepare the equipment for prime operating condition so
that the equipment will operate effectively, reliably, and efficiently during the peak demand months.
MULTI -YEAR PREVENTIVE MAINTENANCE
Each Multi -Year Preventive Maintenance is to consist of the necessary preventive maintenance items performed at
intervals greater than one year, which is in addition to the Annual Preventive Maintenance tasks. The frequency of
Multi -Year Maintenance items will be determined by manufacturer's published recommendations, equipment operating
hours, inspection results and performed at the intervals indicated herein for each applicable equipment type. In the
event the operation or conditions change which require a change in the multi -year frequency, CARRIER shall advise
CUSTOMER in writing appropriate frequency changes and any agreement price adjustment.
Multi -Year Preventive Maintenance includes the repair or replacement of parts and/or components whose normal wear
indicates repair or replacement is needed including: all rotating assemblies, compressor valves /plates /cylinders,
bearings, shaft, internal clearance adjustments, internal cleaning, refrigerant/solution charge transfer, complete
equipment leak testing, evacuation and dehydration where applicable.
Carrier Corporation Printed in U.S.A. 1298 808 -306
[1
SERVICEPLUS
SCOPE OF SERVICE
PREDICTIVE MAINTENANCE:
ANALYSIS OF FLUIDS /TUBES
CARRIER is to provide audits on the internal integrity of the refrigeration equipment by analysis at the frequency so
indicated on the SERVICE AGREEMENT herein. CUSTOMER is to be advised of any dynamic or static parameters
that may cause equipment problems.
Analysis of Fluids /Tubes will be provided as indicated on the SERVICE AGREEMENT. After the completion of each
analysis CARRIER shall interpret the results and provide a written report to the CUSTOMER including any
recommendations for corrective action(s). If the recommended corrective action(s) are within the Scope of Service of
this AGREEMENT, CARRIER shall schedule and complete such action(s).
The following applies in lieu of the "WARRANTY" paragraph of the General Provisions with respect to Analysis of
Fluids /Tubes only:
WARRANTY: CARRIER guarantees the quality of all workmanship of the Analysis Service that is performed under
this SERVICE AGREEMENT for a period of sixty (60) days after completion. Upon written notification within such
period that the Analysis of Fluids/Tubes were not performed in a workmanlike manner, CARRIER agrees to remedy
and redo any such services in a timely manner without cost to the CUSTOMER. In the event that it proves impractical
or impossible to remedy or do such services, CARRIER will reduce the SERVICE AGREEMENT price to reflect the
reduced value of the Analysis of Fluids/Tubes performed. CARRIER'S obligation to remedy any improperly performed
Analysis of Fluids/Tubes or reduce the SERVICE AGREEMENT price for such services shall be the CUSTOMER'S
exclusive remedy under this SERVICE AGREEMENT.
Carrier Corporation Printed in U.S.A. 1298 808 -306
SERVICEPLUS
SCOPE OF SERVICE
GENERAL SERVICES:
ENVIRONMENTAL, HEALTH AND SAFETY
CARRIER is committed to conducting its operations in compliance with all environmental regulations and to
providing a safe and healthful workplace for all of its employees. Our environmental, health and safety goals
include preventing incidents that harm the environment, accidental injury to our employees and visitors, and/or
exposure to harmful chemical or physical agents. Our goals also include the elimination of accidents that cause
property loss, environmental damage, or result in the interruption to our business. To achieve these goals,
environmental and safety rules and procedures will be enforced equally with production, quality, cost and ethical
standards. Our objective is to provide quality products and services while actively conserving our human and
natural resources. CARRIER firmly believes that all accidents and undesirable environmental incidents are
preventable. Furthermore, every job can, and will, be done safely and in an environmentally -sound manner.
Realization of these goals and objectives will demand maximum effort from every employee.
CARRIER's EH &S GOALS:
A.
Create and maintain "Safety Awareness ". Safety is everyone's responsibility, therefore make safety an
integral part of every service job.
B.
Strive to maintain a hazard -free work environment by requiring everyone to provide special attention
to the equipment, processes and procedures utilized in the performance of our work.
C.
Provide for the safeguarding of our employees while improving the effectiveness of our quality
assurance and customer satisfaction programs.
D.
Ensure compliance with applicable standards, regulations and codes established by local, state and
federal agencies (re:OSHA).
E.
Utilize safety and health training, positive reinforcement techniques, identification, evaluation and
correction of hazards and unsafe work procedures and performance to achieve regulatory compliance.
F.
Significant reduction in lost -time injuries, reportable accidents with the long range goal of no lost -time
injuries and no recordable accidents.
G.
Active participation by all CARRIER employees in applicable aspects of the safety program.
H.
Provide CARRIER service operations with effective training based on both OSHA and CARRIER
Safety Standards in the recognition, evaluation and control of hazards and dangerous work procedures
and performances.
I.
Establish safety kits to provide proper personal protective equipment for the assigned tasks.
J.
Establishment of procedures for natural disasters, fire and emergency situations, including safe
locations, exit routes, methods for accounting for employees in natural disasters.
K.
Achieve and ensure the implementation of the safety program with the performance of safety, health
and record - keeping audits by representatives of CARRIER's Safety Committee, and if necessary,
enforcement through an accepted, written, adequately communicated disciplinary program.
L.
Baseline' plot of equipment under current standard conditions.
TUBE BRUSHING
Internal Tube Brushing and visual tube inspection of the heat exchanger water side tubes are to be performed at the
intervals indicated on the applicable SERVICE AGREEMENT. Tube Brushing and inspection includes the heat
exchanger Head Removal and Replacement by CARRIER only if indicated on the SERVICE AGREEMENT.
Carrier Corporation Printed in U.S.A. 1298 808 -306
C�
CI
Resolution 171
As per resolution #1000 adopted 11 -29 -06
Numbering resolutions from 1936 — 2006
For search purposes only
RESOLUTION
HUTCHINSON UTILITIES COMMISSION
CITY OF HUTCHINSON
DESIGNATION OF AUTHORIZED REPRESENTATION
WHEREAS, the Governing Body of Hutchinson Utilities Commission has entered into an
agreement to establish the Missouri Basin Municipal Power Agency, d.b.a. Missouri
River Energy Services (MRES), and as a member thereof is entitled to a
representative who shall represent the Municipal Utility in the business of MRES.
NOW, THEREFORE, BE IT RESOLVED, that Mike Kumm be and he is hereby
authorized and appointed as the representative of the Hutchinson Utilities Commission,
Hutchinson, Minnesota, to represent the Municipal Utility in the business of MRES, with
the powers, duties and responsibilities as provided in said agreement. The alternative
representative, Steve Lancaster, is hereby authorized and appointed with equal powers.
Date
NOTARY: vw-/�
UNDA L MADSON
NOTARY meuumNWA
My Cortgn. BoftWL 31, 2MO