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11-29-2006 HUCM Regular Meeting November 29,2006 Members present: Vice President Don Walser; Secretary David Wetterling; Commissioner Steven Cook; Commissioner Dwight Bordson; General Manager Michael Kumm; Attorney Marc Sebora. Member absent: President Craig Lenz Vice President Walser called the meeting to order at 3:00 pm. General Manager Kumm announced that Brenda Ewing had a conflict in her schedule and will not be present to discuss the combined HUC/City safety and health program, and that GM Kumm will discuss the Big Stone issue instead. Brenda will attend next month's meeting. Secretary Wetterling made a motion to approve the minutes of the October 25, 2006 regular meeting. Commissioner Bordson seconded the motion and it passed unanimously. Commissioner Bordson asked about the payment to Robinson Appraisal & Associate - Appraisal. This is regarding the pipeline. And he asked about the payment to Univar USA Inc - credit memo. We paid a deposit on containers and we sent the containers back, they credited the deposit. Commissioner Bordson made a motion to ratify the payment of bills in the amount of $2,601,088.24 (detailed listing in payable book). Secretary Wetterling seconded the motion and it passed unanimously. GM Kumm presented the financial statements/budget year-to-date. The percentages for the operating income and net income are where we projected them to be. We are asking to wait until next meeting to approve the 2007 budget. If there are any questions with the budget, they can be resolved before the next meeting, making the budget more accurate. Secretary Wetterling made a motion to approve financial statements/budget year to date. Commissioner Bordson seconded the motion and it passed unanimously. Regarding the charge-offs, GM Kumm said we were using three companies and that's the reason for the large amount to be charged-off. We are now using one company and we're trying to clean it up. Nate Smutka, Accounts Supervisor, had a list of all the un- collectibles and said that after a 36-month hold at collections, we submit the list for charge-offs. Included in that list are accounts that have filed bankruptcy. GM Kumm mentioned that we keep the names in our system and if they move back in, they must payoff old accounts. Nate said we do collect a lot of money from people moving back into our services. Commissioner Cook and Secretary Wetterling commented on the large write-offs last year. GM Kumm mentioned that we only did one charge-off last year instead of doing it twice a year like we have done in the past. Discussion took place about the 36-month hold at collections, tracking that amount and taking that into consideration when budgeting for charge-offs. Commissioner Cook made a motion to approve the charge offs (detailed listing on page 2640 of November general journal). Secretary Wetterling seconded the motion and it passed unanimously. GM Kumm reported on the negative letter to the editor regarding the Big Stone II Project. The letter is not factual. MRES has prepared a response to that letter and after a second complaint was published, we will send response to the Leader's editor. MRES has addressed all problems and GM Kumm remarked that this is the best project he has ever been a part of. HUC is the only municipal that had been invited to their table and that is something HUC is proud of. Although wind energy is important it is not dispatchable - 30% of the time it works. We are the second or third largest customer of MRES. MRES has two memberships: S1 and P-Agreement. We're the only one that has the P-Agreement. Commissioner Cool< asked if we could purchase these contracts. 8M Kumm reported that we already have tHem. In 2009 we could become a transmission owner of MISO. In 2007 we will analyze it again. After discussion Commissioner Cook feels he has a better understanding of the Big Stone II Project. Changed to: 'Commissioner Cook asked if we received wind and hydro power from MRES. GM Kumm responded that we could buy wind but we are not in the right geographical region'. Eliminate the last sentence. (See minutes from 12-22- 06). GM Kumm presented the contract with BP Marketing. This is an annual contract. John Webster commented that there are no changes in fees. Vice President Walser asked if we're using the purchasing program. The market goes up and down but we are staying true to the program. GM Kumm reported that the purchasing program is exceeding his expectations. Commissioner Cook asked if he could get an update on the model used. John will get that to him. Secretary Wetterling made a motion to approve the renewed contract with BP Marketing. Commissioner Cook seconded the motion and it passed unanimously. GM Kumm presented the formula for contribution to the City. We used our audit as we needed to figure the growth into the fund. It's not an adder on the bill. It's part of the budget. In talking with the customer service department, we have limited room on the billing statement and to add it as a separate line item, the bill could end up being two pages long, making it confusing for our customers. Secretary Wetterling commented that it's important to have our customers understand the contributions HUC makes to the City, and he also expressed his concern with the formula if HUC does not have a good year financially. Commissioner Cook suggested putting an article in the Leader listing all the benefits we contribute to the City, and he expressed his satisfaction with using the audit from two years ago when calculating the contribution. Attorney Sebora presented a resolution amending Article V, Section 2 of the HUC By- Laws to define the Commission's annual contribution to the City in lieu of taxes. It's City's resolution recognizing our formula. City will adopt a resolution containing the same transfer formula. Changed to: 'City will be asked to adopt a similar resolution containing the same transfer formula.' (See minutes 12-22-06). Secretary Wetterling made a motion to approve amendment to By-laws and exhibit "A" adopting formula for contribution to the City of Hutchinson. Commissioner Bordson seconded the motion and it passed unanimously. GM Kumm reported that in researching HUC resolutions, there is no procedure established for identification or uniformity in numbering. Lin Madson presented a resolution adopting a procedure for re-numbering, for search purposes only. The contents of the resolutions will not be changed. A label will be attached to each resolution reading re-numbered for search purposes only. After discussion Commissioner Cook made a motion to approve resolution 1000 to renumber resolutions from 1936 to 2006 for search purposes only and to start numbering from 1001 as of January 2007 and forward. Secretary Wetterling seconded the motion and it passed unanimously. Requisitions #002143 and #002144 were presented for approval. Steve Lancaster commented on the need to increase our wire inventory. Commissioner Cook made a motion to approve requisitions #002143 and #002144 to Border States Electric for conductor. Commissioner Bordson seconded the motion and it passed unanimously. Requisition #002264 was presented for approval. Steve Lancaster and Dave Hunstad reported that this conductor is for all of next years work orders and it's being ordered now because of the long lead times. Border States is a trusted supplier and they have a truck in Hutchinson daily. Secretary Wetterling made a motion to approve requisition #002264 to Border States Electric for conductor for 2007. Commissioner Bordson seconded the motion and it passed unanimously. In cleaning up old policies, we came across another policy that needs to be rescinded as we have adopted a new policy for parallel generation. Commissioner Bordson made a motion to rescind parallel generation service agreement and rate schedule adopted March 18, 1981. Secretary Wetterling seconded the motion and it passed unanimously. GM Kumm presented roadway lighting policy. In 2002, a motion was made to take over the fees for roadway lighting. Some confusion has ensued because there was no follow- through and no rate established. RW Beck had done an analysis of this and we now have everything established. Dave Hunstad commented that HUC has been working with the City to incorporate maintenance, operation and the transfer of money, into establishing this policy. GM Kumm reported that there had been a question of ownership in roadway lighting. City Engineer John Rodeberg was involved in establishing this policy and wanted to get it finished before he left the City. This policy now defines and settles every issue. The inventory of roadway lighting and signal lighting will be updated annually. As new lights are installed, we'll bill the City, with that amount being added to our annual contribution. This procedure brings us into compliance with our By-laws. We've already been doing this since 2002, now we're recognizing it. Vice President Walser noted a grammatical error in the policy and that will be changed. Commissioner Cook made a motion to approve roadway lighting policy. Secretary Wetterling seconded the motion and it passed unanimously. John Webster presented the advertisement for bids for Highway 7 project. When the Highway 7 reconstruction project resumes in the spring of 2007, we need to remove the steel gas line from California Street to School Road. Temporary plastic lines will need to be placed above ground while we remove the steel line. City will continue with their reconstruction project and then we'll come back and put the line back underground. We need to have someone do this work for us so we have to go out for bids. Secretary Wetterling made a motion to approve the advertisement for bids for Highway 7 project. Commissioner Bordson seconded the motion and it passed unanimously. GM Kumm discussed changing the date and time of the December regular commission meeting to December 22, 2007 at 1 :00 pm because of the Christmas holiday. Commissioner Cook made a motion to change the date and time of the December's regular commission meeting to December 22nd at 1 :00 pm. Secretary Wetterling seconded the motion and it passed unanimously. Division Reports Electric - Steve Lancaster . We've been generating off and on . Boiler machinery inspection took place with good results . Finishing up projects Business - Jan Sifferath . AJ Gallagher was here getting insurance renewals ready . Narrowing down options for health & dental plans - special meeting for approving plan sometime in December . Working on life insurance & long term disability Gas - John Webster . Finishing up condemnation hearings . Attended MMUA meeting in Marshall- Natural Gas School Planning . Finishing up with the GPS for pipeline . Retiring services & installing new services . Working with MNDOT updating manuals . New employee starting within the next 2 weeks GM Kumm announced that we are again helping our local McLeod County Food Shelf by offering a drawing for a turkey if an HUC customer brings in a non-perishable food item. HUC will pay the $3 registration fee for any HUC employee who wishes to attend the City/HUC employee holiday party on Friday, December 15, 2006. Legal Update None Old Business None New Business Commissioner Cook asked if we could change the commission meeting dates to the 1st or 3rd Wednesday of each month. GM Kumm commented that it would not affect the financials on the 1 st and the bills are currently ratified at each meeting. This is something we will check into. Commissioner Cook made a motion to adjourn the meeting at 4:47 p.m. Secretary Wetterling seconded the motion and it passed unanimously. David Wetterling, Secretary ATTEST Craig Lenz, President Regular Meeting November 29, 2006 Members present: Vice President Don Walser; Secretary David Wetterling; Commissioner Steven Cook; Commissioner Dwight Bordson; General Manager Michael Kumm; Attorney Marc Sebora. Member absent: President Craig Lenz Vice President Walser called the meeting to order at 3:00 pm. General Manager Kumm announced that Brenda Ewing had a conflict in her schedule and will not be present to discuss the combined HUC /City safety and health program, and that GM Kumm will discuss the Big Stone issue instead. Brenda will attend next month's meeting. Secretary Wetterling made a motion to approve the minutes of the October 25, 2006 regular meeting. Commissioner Bordson seconded the motion and it passed unanimously. Commissioner Bordson asked about the payment to Robinson Appraisal & Associate — Appraisal. This is regarding the pipeline. And he asked about the payment to Univar USA Inc — credit memo. We paid a deposit on containers and we sent the containers back, they credited the deposit. Commissioner Bordson made a motion to ratify the payment of bills in the amount of $2,601,088.24 (detailed listing in payable book). Secretary Wetterling seconded the motion and it passed unanimously. GM Kumm presented the financial statements /budget year -to -date. The percentages for the operating income and net income are where we projected them to be. We are asking to wait until next meeting to approve the 2007 budget. If there are any questions with the budget, they can be resolved before the next meeting, making the budget more accurate. Secretary Wetterling made a motion to approve financial statements /budget year to date. Commissioner Bordson seconded the motion and it passed unanimously. Regarding the charge -offs, GM Kumm said we were using three companies and that's the reason for the large amount to be charged -off. We are now using one company and we're trying to clean it up. Nate Smutka, Accounts Supervisor, had a list of all the un- collectibles and said that after a 36 -month hold at collections, we submit the list for charge -offs. Included in that list are accounts that have filed bankruptcy. GM Kumm .__r�entionez� that sysfem arictiey move bacrtcin; they musf _____ _ pay off old accounts. Nate said we do collect a lot of money from people moving back into our services. Commissioner Cook and Secretary Wetterling commented on the large write -offs last year. GM Kumm mentioned that we only did one charge -off last year instead of doing it twice a year like we have done in the past. Discussion took place about the 36 -month hold at collections, tracking that amount and taking that into E consideration when budgeting for charge -offs. Commissioner Cook made a motion to approve the charge offs (detailed listing on page 2640 of November general journal). Secretary Wetterling seconded the motion and it passed unanimously. GM Kumm reported on the negative letter to the editor regarding the Big Stone II Project. The letter is not factual. MIRES has prepared a response to that letter and after a second complaint was published, we will send response to the Leader's editor. MIRES has addressed all problems and GM Kumm remarked that this is the best project he has ever been a part of. HUC is the only municipal that had been invited to their table and that is something HUC is proud of. Although wind energy is important it is not dispatchable — 30% of the time it works. We are the second or third largest customer of MIRES. MIRES has two memberships: S1 and P- Agreement. We're the only one that has the P- Agreement. 6eniniissienef Gee Changed to: 'Commissioner Cook asked if we received wind and hydro power from MIRES. GM Kumm responded that we could buy wind but we are not in the right geographical region'. Eliminate the ninth sentence. (See minutes from 12- 22 -06) v1y vwi FW_TTT-T°J°°L• GM Kumm presented the contract with BP Marketing. This is an annual contract. John Webster commented that there are no changes in fees. Vice President Walser asked if we're using the purchasing program. The market goes up and down but we are staying true to the program. GM Kumm reported that the purchasing program is exceeding his expectations. Commissioner Cook asked if he could get an update on the model used. John will get that to him. Secretary Wetterling made a motion to approve the renewed contract with BP Marketing. Commissioner Cook seconded the motion and it passed unanimously. GM Kumm presented the formula for contribution to the City. We used our audit as we needed to figure the growth into the fund. It's not an adder on the bill. It's part of the budget. In talking with the customer service department, we have limited room on the billing statement and to add it as a separate line item, the bill could end up being two pages long, making it confusing for our customers. Secretary Wetterling commented that it's important to have our customers understand the contributions HUC makes to the City, and he also expressed his concern with the formula if HUC does not have a good year financially. Commissioner Cook suggested putting an article in the Leader listing all the benefits we contribute to the City, and he expressed his satisfaction with using the audit from two years ago when calculating the contribution. __ -Trney Sebora presenteda resortution amen�ing- Ar�tic7e V!- Section- 2- ofth�e- HUCffy- Laws to define the Commission's annual contribution to the City in lieu of taxes. It's City's resolution recognizing our formula. Change to: 'City will be asked to adopt a similar resolution containing the same transfer formula.' (See minutes 12- 22 -06) arl GM Kumm reported that in researching HUC resolutions, there is no procedure established for identification or uniformity in numbering. Lin Madson presented a resolution adopting a procedure for re- numbering, for search purposes only. The contents of the resolutions will not be changed. A label will be attached to each resolution reading re- numbered for search purposes only. After discussion Commissioner Cook made a motion to approve resolution 1000 to renumber resolutions from 1936 to 2006 for search purposes only and to start numbering from 1001 as of January 2007 and forward. Secretary Wetterling seconded the motion and it passed unanimously. Requisitions #002143 and #002144 were presented for approval. Steve Lancaster commented on the need to increase our wire inventory. Commissioner Cook made a motion to approve requisitions #002143 and #002144 to Border States Electric for conductor. Commissioner Bordson seconded the motion and it passed unanimously. Requisition #002264 was presented for approval. Steve Lancaster and Dave Hunstad reported that this conductor is for all of next years work orders and it's being ordered now because of the long lead times. Border States is a trusted supplier and they have s truck in Hutchinson daily. Secretary Wetterling made a motion to approve requisition #002264 to Border States Electric for conductor for 2007. Commissioner Bordson seconded the motion and it passed unanimously. In cleaning up old policies, we came across another policy that needs to be rescinded as we have adopted a new policy for parallel generation. Commissioner Bordson made a motion to rescind parallel generation service agreement and rate schedule adopted March 18, 1981. Secretary Wetterling seconded the motion and it passed unanimously. GM Kumm presented roadway lighting policy. In 2002, a motion was made to take over the fees for roadway lighting. Some confusion has ensued because there was no follow - through and no rate established. RW Beck had done an analysis of this and we now have everything established. Dave Hunstad commented that HUC has been working with the City to incorporate maintenance, operation and the transfer of money, into establishing this policy. GM Kumm reported that there had been a question of ownership in roadway lighting. City Engineer John Rodeberg was involved in establishing this policy and wanted to get it finished before he left the City. This policy now defines and settles every issue. The inventory of roadway lighting and signal lighting will be updated annually. As new lights are installed, we'll bill the City, with that amount being added to our annual contribution. This procedure brings us into compliance with our By -laws. We've already been doing this since 2002, now we're recognizing it. Vice President Walser noted a grammatical error in the policy and that ^- - wllt ��n�ec#�,_C"ommissi�orierCook �ma�e a " "m Mori to approve roacTway7ig�iting poky: Secretary Wetterling seconded the motion and it passed unanimously. John Webster presented the advertisement for bids for Highway 7 project. When the Highway 7 reconstruction project resumes in the spring of 2007, we need to remove the steel gas line from California Street to School Road. Temporary plastic lines will need to be placed above ground while we remove the steel line. City will continue with their reconstruction project and then we'll come back and put the line back underground. We need to have someone do this work for us so we have to go out for bids. Secretary Wetterling made a motion to approve the advertisement for bids for Highway 7 project. Commissioner Bordson seconded the motion and it passed unanimously. GM Kumm discussed changing the date and time of the December regular commission meeting to December 22, 2007 at 1:00 pm because of the Christmas holiday. Commissioner Cook made a motion to change the date and time of the December's regular commission meeting to December 22nd at 1:00 pm. Secretary Wetterling seconded the motion and it passed unanimously. Division Reports Electric — Steve Lancaster • We've been generating off and on • Boiler machinery inspection took place with good results • Finishing up projects Business — Jan Sifferath • AJ Gallagher was here getting insurance renewals ready • Narrowing down options for health & dental plans — special meeting for approving plan sometime in December • Working on life insurance & long term disability Gas — John Webster • Finishing up condemnation hearings • Attended MMUA meeting in Marshall — Natural Gas School Planning • Finishing up with the GPS for pipeline • Retiring services & installing new services • Working with MNDOT updating manuals • New employee starting within the next 2 weeks GM Kumm announced that we are again helping our local McLeod County Food Shelf by offering a drawing for a turkey if an HUC customer brings in a non - perishable food item. HUC will pay the $3 registration fee for any HUC employee who wishes to attend the City /HUC employee holiday party on' Friday, December 15, 2006. -- _ None Old Business None I New Business Commissioner Cook asked if we could change the commission meeting dates to the 1St or 3rd Wednesday of each month. GM Kumm commented that it would not affect the financials on the 1 st and the bills are currently ratified at each meeting. This is something we will check into. Commissioner Cook made a motion to adjourn the meeting at 4:47 p.m. Secretary Wetterling seconded the motion and it passed unanimously. ATTEST aig Lenz, res dent i } vid etterling, Secretary MIR NATURAL GAS SERVICES ADDENDUM This Natural Gas ServicesAddendum ( "Services Addendum ") supplements, amends and is subject to a Base Contract for Sale and Purchase of Natural Gas between BP Canada Energy Marketing Corp ( "BP ") and Hutchinson Utilities Commission, City of Hutchinson, Minnesota ( "Hutchinson "), dated January 1, 2004, pursuant to which BP delivers and sells Gas to Hutchinson ("Base Contract "). Gas Supply Services. 1. BP agrees to deliver and sell and Hutchinson agrees to purchase and receive Firm Gas (baseload) in accordance with the following terms: a. All monthly Firm Gas baseload will be priced based on market conditions at the time Hutchinson makes their monthly Firm Gas baseload purchases. Hutchinson will have the flexibility to purchase monthly firm baseload gas by month or multi -month purchases. b. Hutchinson will have the choice of pricing mechanisms for baseload purchases including but not limited to; monthly index, daily index, fixed price, and various structured products. 2. Except as may otherwise be agreed by the Parties and subject_ to paragraph 1, provided that Hutchinson advises BP of its requirement for any Day not less than twenty four (24) hours prior to the start of the Day, BP will sell and deliver Firm (Variable Quantity) Gas to Hutchinson from the Northern Natural or Northern Border systems, after taking into account Firm ( Baseload) Quantities delivered pursuant to paragraph 1(a), up to the level of Hutchinson's furn takeaway entitlement from Northern Natural or Northern Border ( "Firm Variable Gas "). Except as otherwise agreed, Hutchinson shall pay for Firm Variable Gas delivered on each Day at the applicable price, as published for the Day by platt's "Gas Daily" in its "Daily Price Survey ($/M1VIBtu)" for " Northern, Ventura" "Midpoint" ( "Daily Index "), plus $0.01/Dth. If Hutchinson requests that BP deliver Finn Variable Gas less than twenty four (24) hours prior to the start of any Day, BP's obligation to deliver such Gas shall be on a reasonable commercial efforts basis only. Hutchinson shall pay for Firm Variable Gas delivered on each Day at Daily Index for the delivery Day, plus $0.15 /dth. If, not less than twenty four (24) hours prior to the start of any Day, Hutchinson requests that BP repurchase Firm (Fixed quantity) or Firm (Variable Quantity) Gas delivered by BP during that Day that is excess to Hutchinson's requirements, BP shall re- purchase such Gas from Hutchinson. BP shall pay Hutchinson for any such Gas at Daily Index for the delivery Day, minus $0.01 /dth. If, within twenty four (24) hours prior to the start of any Day, Hutchinson requests that BP repurchase Finn (Fixed Quantity) or Firm (Variable Quantity) Gas delivered by BP during that Day that is excess to Hutchinson's requirements, BP will re- purchase such Gas from Hutchinson on a reasonable commercial efforts basis. BP shall pay Hutchinson for any such Gas at Daily Index for the delivery Day, minus $0.15 /dth. 4. Subject to Hutchinson's obligations in paragraph 1, nothing in this Services Addendum precludes Hutchinson from purchasing its Gas requirements from third parties. 5. Except in circumstances where it is not reasonably possible to do so, BP shall confirm each purchase and sale transaction undertaken pursuant to this Services Addendum by sending Hutchinson a Transaction Confirmation in accordance with the confirmation procedure of the Base Contract. Management Services. 6. During the term of this Addendum, BP shall provide the following Gas management services ( "Management Services ") to Hutchinson: (a) acting as agent for Hutchinson in respect of the operation of Hutchinson's Northern Natural TF contracts #21279 and #102733 ( "NN Contracts ") for the remaining term thereof, to include, without limitation, preparing and submitting all daily, monthly and real time change nominations. (b) acting as agent for Hutchinson and in the negotiation of transportation/storage discounts; (c) providing Hutchinson with timely copies of all nominations made or communicated by BP pursuant to (a); monitoring receipts of daily Gas supplies and Hutchinson's daily consumption of Gas and defining related imbalances; (d) providing Hutchinson with confirmation services on NBPL related to third party shippers delivering to the NBPL/Hutchinson Pipeline Interconnect. (e) assisting Hutchinson in managing and optimizing on- system Gas inventories and resolving system imbalances; (f) providing Hutchinson with relevant current and historical Gas industry market information to assist Hutchinson in making cost effective Gas purchasing decisions; (g) as requested by Hutchinson, assisting Hutchinson in analyzing and solving problems relating to supply procurement, transportation, dispatching and accounting; (h) monitoring, reporting and communicating with Hutchinson in respect of Gas market price volatility risks and related risk management procedures and, as agreed to by Hutchinson and subject to credit considerations, providing Hutchinson with financial risk management products; (i) advising Hutchinson in a timely manner of any critical day events on pipeline systems or any other industry developments or circumstances of which BP has become aware that may have a material effect on the supply or transportation of Gas to Hutchinson; (j) providing Hutchinson with 24 -hour, seven days per week toll free 888 telephone access to a BP employee that will receive and implement any supply adjustments requested by Hutchinson and are acceptable to the requirements of the relevant Transporter; and, (k) maintaining ongoing familiarity with the terms of any necessary documentation, including contracts and material amendments that may occur from time to time, relating to the services to be provided hereunder and any pipeline tariffs applicable to the Hutchinson's operations, ("Supporting Documentation "), and using all reasonable efforts to assist Hutchinson in achieving maximum benefit in respect thereof. Optimization of Linepack on Hutchinson System. 7. BP will optimize any line pack available on the Hutchinson transmission system. The availability of line pack shall be determined in accordance with parameters determined by Hutchinson. Any optimization revenues earned shall be equally shared between the parties. 2 Hutchinson Obligations. 8. Hutchinson shall: (a) as relevant, and as requested by BP, provide BP with required Supporting Documentation, including, without limitation, information, as required, in respect of any third party supply, including, without limitation, the name and particulars of each third party, the third party Duns number and any applicable upstream contract numbers; (b) provide BP with all required information related to third party shippers imbalances on the Hutchinson Pipeline for BP to manage the NBPL OBA and optimize the Hutchinson Pipeline linepack. (c) take all actions in a timely manner required to designate BP as its agent to the extent necessary to enable BP to provide Management Services; and, (d) subject to paragraph 10, be responsible for all demand, commodity and other charges pursuant to the NN Contracts. Service Fees. 9. During the term of this Service Addendum, for each MMBtu of Gas purchased by Hutchinson from a third party supplier and delivered to Hutchinson in a month, Hutchinson shall pay BP a third party supply handling fee of $0.0l/MMBtu ("Supply Handling Fee "). Penalties and Forfeitures. 10. BP and Hutchinson shall work together to minimize any penalties or forfeitures that may arise in respect of Hutchinson transportation for which BP provides Management Services. Each party shall be responsible for Imbalance Charges that result from the actions, errors or omissions of that party. BP shall not be responsible for Imbalance Charges to the extent that BP acts reasonably on information provided by Hutchinson or on instructions from Hutchinson. BP shall be liable for Imbalance Charges incurred as a result of BP failing to nominate, schedule and/or confirm the quantity Gas in accordance with Hutchinson's instructions and published Transporter standards and agrees to pay any unauthorized Gas usage charges incurred by reason of BP's failure to perform Management Services in accordance with the terms of this Services Addendum. Term. 11. This Services Addendum shall be in effect during the period of January 1, 2007 through December 31, 2007, and shall continue on a year by year basis thereafter unless terminated on not less than ninety (90) days prior written notice given by one party to the other, to have effect at the end of any such annual period; provided that any obligation to make payment hereunder shall survive the termination of this Services Addendum. Conflict. 12. In the event of a conflict between the provisions of this Services Addendum and the Base Contract, the provisions of this Services Addendum shall govern. 3 INTENDING TO BE LEGALLY BOUND, the parties have executed this Services Addendum as an addendum to the Base Contract through their duly authorized representatives effective as of the date specified above. BP Canada Energy Marketing Corp. Name: Title: Confirmed as of the date first above written: Hutchinson tilities Commission By: (� / Name: Do `►•-a � � � �1�� s,4e h Title: U l L e p1r e5 /J e k t 1 4 Resolution 174 As per resolution #1000 adopted 11 -29 -06 Numbering resolutions from 1936 — 2006 For search purposes only November 29, 2006 RESOLUTION HUTCHINSON UTILITIES COMMISSION CITY OF HUTCHINSON A RESOLUTION AMENDING ARTICLE V, SETION 2 OF THE HUTCHINSON UTILITIES COMMISSION BY -LAWS TO DEFINE THE COMMISSION'S ANNUAL CONTRIBUTION TO THE CITY IN LIEU OF TAXES WHEREAS, the Hutchinson City Charter and the Hutchinson Utilities Commission By -Laws contain provisions for the transfer of surplus Utilities funds to the City in lieu of the payment of taxes; and, WHEREAS, heretofore the amount transferred from year to year has been undefined and subject to annual renegotiation; and WHEREAS, the Hutchinson Utilities Commission has determined that a definite payment formula for this transfer is fiscally prudent and in the best interest of the Hutchinson Utilities Commission, NOW, THEREFORE, BE IT RESOLVED BY THE HUTCHISON UTILITIES COMMISSION: THAT the amendments to Article V, Section 2 of the Hutchinson Utilities Commission By -Laws, as attached as Exhibit A hereto, are hereby adopted and that these By -Law amendments will go into effect at such time that the City of Hutchinson adopts a Resolution containing the same transfer formula. Adopted by the Hutchinson Utilities Commission this 29th day of November 2006. ATTEST: ;("A- ) C-, Vice President o r Adopted November 29, 2006 RESOLUTION 1000 RESOLUTION OF HUTCHINSON UTILITIES COMMISSION CITY OF HUTCHINSON WHEREAS, Hutchinson Utilities Commission has since 1936 adopted resolutions relative to the operations of the electric and natural gas divisions, and; WHEREAS, some of these resolutions have consecutive numbering and some have no numbering, and; WHEREAS, no known procedures for identification or uniformity in numbering resolutions has been established, and; WHEREAS, the governing Board of Commissioners wishes to establish a procedure for numbering resolutions, and; WHEREAS, all known resolutions executed by the governing Board of Commissioners has been researched. Is NOW THEREFORE BE IT RESOLVED, that Hutchinson Utilities Commission wishes to: 1. Establish re- numbering of all resolutions from 1936 through 2006 for "search" purposes in the future, labeling each resolution with a number, retaining any original numbers so as not to change the contents of the resolution, with labeling each resolution representing this re- numbering system. 2. That Hutchinson Utilities Commission will start with resolution number 1001 for any resolutions adopted January 2007 and forward. Adopted by the Hutchinson Utilities November 2006. ATTEST: Donald Walser, Vice President 321 Commission this 29th day of C Len President '0wi 0, . �� M r N 0 0 O Z c O a� U a� Q CL M O Z g LL N N Z 0 O 1-- o D w N F Z c T 000 U) air It N Oz zn Z o 00 00 V5 N = 00 CO) z=ZNN G = (.) = M M �- 90 90 1— C .. 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E co cm cu E Y flf Y = c cr L v(1 o � iL CO C° a. a.. �' ° c o JZZ JZZJN C' Z _ I- m N E O * N U N N C', R N O ct, e- N 0 0 N(I M N L6 CO r 06 NT- M Q p b_F3 J M "0 > � 0 Z � W � W LL. LL LL 1-11:� o � .8 = c o ca Q O J 5 •� Y Y -0 Y N I- to O O a W T_ V-c Vc M CO) V UU ��c 20 co 2 U O C O ,E O ,E Loa. L r°Ad t°� m E U) m Z o Q I- c co a E O O w� U Ec E U cis co � UJ mw p W PARALLEL GENERATION SERVICE AI;E;I:EMENT l THIS AGREEMENT, made this day of the Hutchinson Utilities Commission, hereinafter referred to as the "Company ", and hereinafter referred to as the "Customer ". WITNESSETH; That 1. Subject to all the terms and conditions of this Agreement, the company and Customer agree to interconnect their respective facilities to purchase,or sell electric energy requirements to be installed in Hutchinson located at Minnesota, upon the terms and conditions and at the rates and charges due and payable there = for pursuant to the Company's applicable Electric R.:nte Schedules and three (3) 1; copies of which are attached as a part hereof, and upon the terms and conditions Z set forth in the Company's General Terms and Conditions, all as now on file with the Company and as may be re- issued and made effective from time to time as need exists or as provided by law. Such energy shall be phase, 60 cycle, , alternating current, at approximately volts. 2. Company agrees to extend and maintain its lines to the premises of Customer and to install all transformers, switches, lighting arrestors, meters, recording devices and other apparatus necessary for the purpose of delivering and measuring the energy at the point of interconnection, which shall be at the expense of the Customer. Customer shall pay expense of both labor and materials. L A�Y �1) •t,' �'h Such facilities of Company shall be sufficient to SAL isfy a maximum capacity requirement by Customer of 100 KVA of electric power, which shall constitute the Contract Capacity hereunder. Customer shall notify Company of an anticipated substantial increase in capacity requi.remcwnt not 1c: than ninety (90) days prior to date of such increase, and adjustment in Contract Capacity shall be made accordingly. Customer shall install and maintain, at its own expense, in approved standards of construction, all other facilities on Customer':; side of point of delivery which are necessary for the proper exchange of electrical energy and for its use beyond ;' such point. Such facilities and customer's plant equipment shall be of types which will not interfere with other service rendered by Company and be subject to inspection and approval by the Company at reasonable times. 3. Customer agrees to provide Company, without cost, a suitable location and right-of-way on Customer's premises for necessary lines and apparatus. All apparatus: installed by and at cost of Company shall remain Its; property and it shall have the right to inspect, repair or remove the same. 4. This agreement shall continue for a period of one (1) year from 19 (referred to as the "primary period ") and thereafter frQa year to year (referred to as the "yearly period ") u►itil terminated by either party giving ninety (90) days written notice prior to expiration of the primary or any yearly period thereafter. 5. Company will render bills monthly for elect.ric service furnished under this' Agreement and Customer shall pay such bills in accordance with Company's filed General t (2) t l t Xt ,wm.4 Terms and Conditions and the applicable rate schedules. In the event any such bill is not so paid, the Company may suspend the sup ply of electric ;service in accordance with its filed General Terms and Conditions or cancel this Agreement, but such action shall not release Customer or Company from the obligation to pay for services furnished or from liability for damages because of my breach hereof. 6. In case service should be interrupted or f.til by sn act of God or public enemy, fire, explosion, flood, strike, other cessation of work by personnel, picketing, insurrection, mob violence, governmental interference, break down of or injury to machinery or distributing lines, extraordinary repairs, or other accident or other calfses not reasonably within its control, or any condition jeopardizing service to other Company customers, the Company shall not be liable for damages on account of interruption of service. The parties shall resume delivery and receipt of electric energy when such causes or contingencies cease to bu operative. Any minimum charges provided in said rate schedules shall be suspended :,hould Customer be prevented from . receiving energy for a period in excess of thirty o y (30) days because of shut down ,of its plant occasioned by the occurrence of any of the above events. 7. Company shall not be liable for any loss or damage to property or injuries to or death to persons, whether suffered by Customer., its agents, or employees or' any third person, persons or corporations, resultim, from the location, use or operation of electrical or other equipment located oil Customer's side of the point of delivery or from electric energy present therein or escaping therefrom, and l' Customer agrees to indemnify and save Company harmless from all such loss, damages, injuries or death.. 8. The energy to be delivered hereunder shall. be measured by meters of standard. type installed and operated by Company. Adjustment of errors in the measurement of energy or computation of bills shall be made for the known period of error. (3) f 41 N 9. The provisions of the Agreement shall not. changed except in writing duly signed by Company and Customer; however, the Agreement is subject to valid order of legally constituted regulatory bodies having jurisdiction over the Company's rates. 10. This Agreement shall inure to the benefit of and be binding upon the parties hereto, their respective successors and assigns. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. By (4) �,rpFa I� r f L PARALLEL GENERATION SERVICE Applicable to: All areas served A. B. IL-ILO Schedtile b_ Availability This schedule is available to all single Iflhase and three phase customers where part or all of the electrical requirements of the customer are supplied by the customer's generation facilities, and such facilities are connected in parallel with the Company's system. Customer's initial installation and subsequent changes to parallel facilities must be approved by the Company, in writing, prior to the rendering or continuation of service. The Company will be the sole purchaser of power generated by the customer in excess of the customer's own electrical requirements. Rate 1. For customers with generating facilities rated at 5 KW or less, the Company will install a detent on the standard watt -hour meter serving the customer so as to measure only the flow of energy provided by the Company to the customer. Energy so provided by the Company will be billed to the customer under the applicable rate schedule. 2. For customers with installed generating facilities rated over 5 kilowatts or to 100 kilowatts, the customer's net monthly rate will consist of: (5) ba i 'nt -J, C. 9 a (a) A fixed charge of $2.00 per month for single phase service (or) (b) A fixed charge of $5.00 per month for three phase service. (c) Demand and energy requirements supplied by the Company to the Customer will be billed in accordance with the appropriate rate schedule. For energy delivered by the Customer to the Company, the Customer will receive a flat rate energy credit of $.0280 per kilowatt -hour. The minimum monthly charge will be the fixed charge determined in (a) or (b) above.. 4a( sfi 3. For customers with generating facilities in excess of 100 kilowatts,'g the Company will negotiate a separate contract. t � Metering and Service Facilities f It will be the customer's responsibility to furnish, install and wire the necessary service entrance equipment, meter sockets, meter enclosure cabinets, or meter connection cabinets that may be required by the Company to properly meter electrical energy to this rate schedule. Under this rate schedule, it will be the customer's responsibility to pay for all costs over and above those costs normally associated with non - parallel service. Liability of the Parties; Each of the parties shall indemnify and save harmless the other party A r. (6) zfi 3 a. against any and all damages to per::c W; or prope:rty occasioned, without the negligence of such other party, by the maintenance and operation by such parties of their respective li-w s and ether electrical equipment. IN WITNESS WHEREOF, Lite parties hereto have executed this Agreement the day and year first above writt -en. By 1 (Customer) (7) Hutchinson Utilities Commission i Hutchinson Utilities Commission Roadway and Destination Lighting Operation and Maintenance Policy I. Ownership. In all circumstances, the City of Hutchinson retains ownership of the roadway and destination lighting. Operation and maintenance will be the responsibility of Hutchinson Utilities Commission. Hutchinson Utilities will be compensated for the Operation and Maintenance in accordance with a rate schedule, Attachment "A ". i. Developments. All developers will be responsible for the installation of roadway lights to the current standard, specification. A developer is considered any party who initiates a project that affects roadway light. All developments must be approved by the City of Hutchinson. ii. Conversions or upgrades. In areas where power lines are being converted from overhead to underground, Hutchinson Utilities shall be considered the developer and will be responsible for the roadway lights to be converted to the current city standard, specification. Underground conversion and roadway light conversion will be completed simultaneously by Hutchinson Utilities personnel, but may be done by contractors if adequate resources are not available. iii. Maintenance. Hutchinson Utilities will perform routine maintenance of roadway lights. This will include maintenance of fixtures, globes and electrical conductors. Items of routine nature are responded to in a timely manner, as personnel, time, or other operational constraints allow. Whenever possible, property owners or citizens initiating a repair will be notified of the response to their concerns. iv. Repairs. When roadway lighting maintenance /repairs are required, a list will be compiled and given to the Hutchinson Utilities Electric Division for completion. If it is determined roadway lights were damaged by inappropriate actions, the entire cost of restoring the roadway light shall be charged to the responsible party. H. Operation & Maintenance Cost: The operation and maintenance cost for roadway lights installed on public properties and rights -of -way shall be at the expense of and budgeted for by Hutchinson Utilities Commission. Hutchinson Utilities Commission will bill the City of Hutchinson quarterly according to the current rate schedule for the operation and maintenance of roadway lights. This amount will be added to the quarterly general funds transfer to the City of Hutchinson. See attachment "A ": III. Attachment "A" will be updated annually. I C Q t Z LL Q Q N L Q p> J U) > m v rn� t � U C m O N 9 h CD N d"d' N tt� O Mcl CO o >, m qU� ch C t b9 y V1 E +-� C 3 �O, �U) C�ONtoOrnoD 0) 0 00 N 00a Q,O �,000I�M�NN N C O O co a - a CD N W-0 rn m y L Cow C e'��N e- r a- O O O I-- t, -ItNM DNM0L-�1zM C� CA W U') to 1` M tt C'M N M to M ti uO CS>, tOOOCAtOCC)OMOCAOO� 0 J rO J r ~U C C C O .. > - ALL Q00Z °� U < -S O0000Oo V T7d UnOC)oi�to �pco0)CO�CACAN OI�V,r-toNN 0) CC) v- CO(14 OCD N OQvN +r > N r, 0 " ct It N to ` Ca N C ) 04Ce) C0 CU C O cyi 1-. to CA 1- cM Cl) C C OO CA co CM co O Lo -a W QODCOIO000000 - d" C' •-^ O NT CO H J U N L Q p> J U) > m v rn� t � U C m O N 9 MCjN CO) 07 Cn ca LE LO O O r N C O CO o >, m ch C t b9 y V1 E +-� C u N V C N +_� N C = O C O pm > O ._ Ix W cv to N C O O co a - a CD N W-0 rn m y L O C C y W Q LL C U H E CO 8 C M o O O r e- r a- O O O I-- t, -ItNM DNM0L-�1zM C� CA W U') to 1` M tt C'M N M to M ti uO CS>, tOOOCAtOCC)OMOCAOO� rO J � C C C O .. > - ALL Q00Z °� U < -S Advertisement for Bids for INSTALLATION AND RETIREMENT OF NATURAL GAS DISTRIBUTION LINES 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 3rd day of January, 2007, and will publicly open and read aloud such Bids on the following work: "Installation and Retirement of Natural Gas Distribution Line" Proposals shall be properly endorsed and delivered in an envelope marked "Installation and Retirement of Natural Gas Distribution Line" 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 and provide a Performance Bond after his Bid shall have been accepted. The successful Bidder shall furnish a Performance Bond in an amount equal to one hundred percent (100 %) of the Contract price to the Owner prior to the approval of the Contract. No Bidder may withdraw his Bid or Proposal for a Period of thirty (30) days after date of opening of Bids. 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. sy Donald Walser, Vice President Date 12, , 16 P.- Date 1