03-26-2008 HUCMRegular Meeting
March 26, 2008
Members present: President Donald H. Walser; Vice President David Wetterling;
Secretary Dwight Bordson; Commissioner Robert Hantge, General Manager Michael
Kumm; Attorney Marc Sebora
Member absent: Commissioner Craig Lenz
President Walser called the meeting to order at 3:00 p.m.
th
The minutes of the March 3, 2008 regular meeting (the February 27 rescheduled
meeting) were reviewed. A motion was made by Vice President Wetterling, seconded
by Commissioner Hantge, to approve the minutes as written.
Noel P. Rahn and Charlie Daum, representatives from Geronimo Wind Energy, were
welcomed to the meeting. A presentation was given regarding doing a wind energy
analysis. After discussion, authorization was given to GM Kumm to work with Jeff
Peters of Missouri River Energy Services in partnering during the first stage of this
study.
Paul Harvego of Conway, Deuth & Schmiesing was welcomed to the meeting to present
the financial audit for 2007. After discussion, the board thanked GM Kumm for the good
job he has done in the past two years. GM Kumm thanked the whole of Hutchinson
Utilities for the team work involved in improving our financial stability. A motion was
made by Vice President Wetterling, seconded by Secretary Bordson, to approve the
financial audit for 2007. Motion was unanimously carried.
The February payables were discussed. A motion was made by Secretary Bordson,
seconded by Commissioner Hantge, to ratify the payment of bills in the amount of
$4,567,294.34 (detailed listing in payables book). Motion was unanimously carried.
GM Kumm presented the financial statements/budget year-to-date. After discussion, a
motion was made by Commissioner Hantge, seconded by Vice President Wetterling, to
approve the financial statements/budget year-to-date. Motion was unanimously carried.
Hutchinson Utilities Commissioner’s responsibilities and behavioral rules were
discussed. It was decided to add verbiage regarding ‘code of conduct/ethics’ to the rules
and responsibilities. A motion was made by Commissioner Hantge, seconded by
Secretary Bordson to approve HUC Commissioner’s responsibilities and behavioral
rules with the addition of code of conduct/ethics as part of the Commissioner’s
orientation packet. Motion was unanimously carried.
GM Kumm presented a table showing the need for an increase in compensation for the
Commissioners. There has not been an increase since 1994 and more decisions are
being made now than they have in the past, HUC’s net income has more than doubled,
and they are more involved and more visible than ever before. President Walser stated
that the Commissioner’s compensation pay increase must be approved by the City
Council. A motion was made by Commissioner Hantge, seconded by Vice President
Wetterling to make a recommendation to City Council to increase the Commission
member’s salary from $439.90 a month to $665 a month and to increase the President
of the Commissions salary from $439.90 a month to $1000 a month. Motion was
unanimously carried. Attorney Sebora will draft a resolution for the council to approve
the increase in compensation.
The strategic plan - vision statement three - strategic objectives, was reviewed. Some
tasks have already been completed. We have heard from two areas outside the city
limits that are interested in natural gas service.
Advertisement for bids for construction of new materials center and remodel of existing
warehouse on north complex was presented for approval. A motion was made by Vice
President Wetterling, seconded by Commissioner Hantge, to approve the advertisement
for bids for construction of new materials center and remodel of existing warehouse on
north complex. Motion was unanimously carried.
Advertisement for bids for 2008 trencher w/ancillary equipment including trade of Ditch
Witch 7020 trencher, backhoe and redi-haul trailer was presented for approval. This is a
replacement and has been budgeted. A motion was made by Secretary Bordson,
seconded by Commissioner Hantge, to approve the advertisement for bids for 2008
trencher w/ancillary equipment including trade of Ditch Witch 7020 trencher, backhoe
and redi-haul trailer. Motion was unanimously carried.
Advertisement for bids for building, site and landscape improvements was presented for
approval. This is a budgeted item. Small issues with MNDOT and City are being worked
out. A motion was made by Commissioner Hantge, seconded by Secretary Bordson, to
approve advertisement for bids for building, site and landscape improvements. Motion
was unanimously carried.
Steve Lancaster, Director Electric Division, presented requisition #003032 for unit 1
vacuum pump system replacement. This is for the steam turbine at plant 2. A motion
was made by Vice President Wetterling, seconded by Secretary Bordson, to approve
requisition #003032 for unit 1 vacuum pump system replacement from John Henry
Foster. Motion was unanimously carried.
GM Kumm presented the change to the purchasing policy. Because we will have
smaller tanks for diesel fuel for generation, we will be purchasing diesel fuel more
frequently. Added to the policy for purchases between $15,000 and $50,000: Fuel
purchases for electrical generation is an exception, for additional exceptions refer to
Minnesota Statutes 2003, 471.345 Uniform Municipal Contracting Law. A motion was
made by Vice President Wetterling, seconded by Secretary Bordson, to approve the
change to the purchasing policy. Motion was unanimously carried.
Division reports
Business – Jan Sifferath
Nothing to report
Gas – John Webster
Developing brochure for public awareness programs
Working with Xcel energy on the electric substation
HUC marketing natural gas energy to Heartland
Electric – Steve Lancaster
Will need to schedule a special meeting for the award of the bid tabulation for
the tank removal and tanks installation project
Legal Update
None
Unfinished Business
GM Kumm reported that he received a letter from McLeod Coop regarding the
territory agreement. They did not accept our letter of ‘right to serve’. We will be
contacting McGrann Shea Law Office to deal with this territory issue.
New Business
None
There being no further business, a motion was made by Vice President Wetterling,
seconded by Commissioner Hantge to adjourn the meeting at 5:24 p.m. Motion was
unanimously carried.
_________________________________
Dwight Bordson, Secretary
ATTEST________________________________
Donald H. Walser, President
Regular Meeting
March 26, 2008
Members present: President Donald H. Walser; Vice President David Wetterling;
Secretary Dwight Bordson; Commissioner Robert Hantge, General Manager Michael
Kumm; Attorney Marc Sebora;.
Member absent: Commissioner Craig Lenz
President Walser called the meeting to order at 3:00 p.m.
The minutes of the March 3, 2008 regular meeting (the February 27th rescheduled
meeting) were reviewed. A motion was made by Vice President Wetterling, seconded
by Commissioner Hantge, to approve the minutes as written.
Noel P. Rahn and Charlie Daum, representatives from Geronimo Wind Energy, were
welcomed to the meeting. A presentation was given regarding doing a wind energy
analysis. After discussion, authorization was given to GM Kumm to work with Jeff
Peters of Missouri River Energy Services in partnering during the first stage of this
study.
Paul Harvego of Conway, Deuth & Schmiesing was welcomed to the meeting to present
the financial audit for 2007. After discussion, the board thanked GM Kumm for the good
job he has done in the past two years. GM Kumm thanked the whole of Hutchinson
Utilities for the team work involved in improving our financial stability. A motion was
made by Vice President Wetterling, seconded by Secretary Bordson, to approve the
financial audit for 2007. Motion was unanimously carried.
The February payables were discussed. A motion was made by Secretary Bordson,
seconded by Commissioner Hantge, to ratify the payment of bills in the amount of
$4,567,294.34 (detailed listing in payables book). Motion was unanimously carried.
GM Kumm presented the financial statements /budget year -to -date. After discussion, a
motion was made by Commissioner Hantge, seconded by Vice President Wetterling, to
approve the financial statements /budget year -to -date. Motion was unanimously carried.
Hutchinson Utilities Commissioner's responsibilities and behavioral rules were
discussed. It was decided to add verbiage regarding `code of conduct/ethics' to the rules
and responsibilities. A motion was made by Commissioner Hantge, seconded by
Secretary Bordson to approve HUC Commissioner's responsibilities and behavioral
rules with the addition of code of conduct/ethics as part of the Commissioner's
orientation packet. Motion was unanimously carried.
GM Kumm presented a table showing the need for an increase in compensation for the
Commissioners. There has not been an increase since 1994 and more decisions are
being made now than they have in the past, RUC's net income has more than doubled,
and they are more involved and more visible than ever before. President Walser stated
that the Commissioner's compensation pay increase must be approved by the City
Council. A motion was made by Commissioner Hantge, seconded by Vice President
Wetterling to make a recommendation to City Council to increase the Commission
member's salary from $439.90 a month to $665 a month and to increase the President
of the Commissions salary from $439.90 a month to $1000 a month. Motion was
unanimously carried. Attorney Sebora will draft a resolution for the council to approve
the increase in compensation.
The strategic plan- vision statement three - strategic objectives, was reviewed. Some
tasks have already been completed. We have heard from two areas outside the city
limits that are interested in natural gas service.
Advertisement for bids for construction of new materials center and remodel of existing
warehouse on north complex was presented for approval. A motion was made by Vice
President Wetterling, seconded by Commissioner Hantge, to approve the advertisement
for bids for construction of new materials center and remodel of existing warehouse on
north complex. Motion was unanimously carried.
Advertisement for bids for 2008 trencher w /ancillary equipment including trade of Ditch
Witch 7020 trencher, backhoe and redi -haul trailer was presented for approval. This is a
replacement and has been budgeted. A motion was made by Secretary Bordson,
seconded by Commissioner Hantge, to approve the advertisement for bids for 2008
trencher w /ancillary equipment including trade of Ditch Witch 7020 trencher, backhoe
and redi -haul trailer. Motion was unanimously carried.
Advertisement for bids for building, site and landscape improvements was presented for
approval. This is a budgeted item. Small issues with MNDOT and City are being worked
out. A motion was made by Commissioner Hantge, seconded by Secretary Bordson, to
approve advertisement for bids for building, site and landscape improvements. Motion
was unanimously carried.
Steve Lancaster, Director Electric Division, presented requisition #003032 for unit 1
vacuum pump system replacement. This is for the steam turbine at plant 2. A motion
was made by Vice President Wetterling, seconded by Secretary Bordson, to approve
requisition #003032 for unit 1 vacuum pump system replacement from John Henry
Foster. Motion was unanimously carried.
GM Kumm presented the change to the purchasing policy. Because we will have
smaller tanks for diesel fuel for generation, we will be purchasing diesel fuel more
frequently. Added to the policy for purchases between $15,000 and $50,000: Fuel
purchases for electrical generation is an exception for additional exceptions refer to
Minnesota Statutes 2003, 471.345 Uniform Municipal Contracting Law. A motion was
made by Vice President Wetterling, seconded by Secretary Bordson, to approve the
change to the purchasing policy. Motion was unanimously carried.
r�
[1
Division reports
Business — Jan Sifferath
Nothing to report
Gas — John Webster
• Developing brochure for public awareness programs
• Working with Xcel energy on the electric substation
• HUC marketing natural gas energy to Heartland
Electric — Steve Lancaster
Will need to schedule a special meeting for the award of the bid tabulation for
the tank removal and tanks installation project
Legal Update
None
Unfinished Business
GM Kumm reported that he received a letter from McLeod Coop regarding the
territory agreement. They did not accept our letter of `right to serve'. We will be
contacting McGrann Shea Law Office to deal with this territory issue.
New Business
None
There being no further business, a motion was made by Vice President Wetterling,
seconded by Commissioner Hantge to adjourn the meeting at 5:24 p.m. Motion was
unanimously carried.
ATTEST a
Donald H. Walser, President
(� L�- � 0-v�
Dwight Bordson, Secretary
y
4�
V
O
w
A4
41
a�
o�
0
a�
a�
A
!d
t�
H
ba
4�
w
•,y
a�
H
ri
O
.,.i
O
O
O
c�
N
a
0
0
N
N
Ici
c�
L,
0
J.2
,Az
�c
w
cd
4�
bn
T
Q�
W
0
0
0
a
w
cu
H
0
w
U
N
�O
a
W
cd
. . .
m
ifs
0
0
C�
FRI
0
U
N
co
m
m
ON
w
W
bo
bb
bo
a
a
a
a
a
T
Q�
W
0
0
0
a
w
cu
H
0
w
U
N
�O
a
W
cd
. . .
m
ifs
0
0
C�
FRI
0
U
0
\rJ �
0
O
N
W �
O �
J2
O o
4
O
U cif O
U U
0
0
° ��°, 'n
O ° +
.0 � LO
> +-->
(U
M U 4
+, +' U O O
O O
C) IL4
Oar w
U 40-4
• o , a� bjO
CU
x
M
0
0
0
a�
Sw
FRI
b
0
U
l�
l�
O
Z>
W
LO
U
U
4—) U
O
U 0
O �
0 W
U 0
0
a�
o �N
w •0 w �
a o .?
• Cf)
rh
U
U
Cd U
w �
� � W
,o
V) Q 's
c� OC)
O
U �o 00
a � N 0) a
Cd •• U U
cd v�aww
M
O
O
a�
a
0
U
I
0
,/Nz
lC
W
l�
a�
W
a�
E�
rte+ o6 V 6 N- N 6 N ,.�
( D Ull_
aM � ni
�� 0
cot � �
� �Na)Q A4� W� <�cC
w I I I I I
E� cd
LO
61.1
54
.f
0
0
a
"0d
0
U
O I,Nz
III °
c
LO
1-71
+j
r
t0
V
W
�L
L
Cd
Id
U
v
0
a
b
0
O
IN
;auiZ) A,Y l 71-1
N rq o o
sag) sea ( sad papps myq
�o
�J
9(9
O�
S
O °, v O
L
1904, s
v
v
ti
66f � O
�
z
r
O
+j
O
O
a
F"
O
u
W
�
�
U
O
�O
�
O
Y)
a�
C�
Lr)
cq
,
Q
•
's;
O
U
Cl)
(j
O
v
U
U
bA
U
U
S>
O
„-�
0
o
y i
O
4-J
N
U
'�
U
4-4
`
N
\°
U
��+
O
OO
,
'
cd
-+-
$-+
0
O
'$
S�
�
.
N
0
0
�
N
L
.,
�
to
r
O
+j
O
O
a
F"
O
u
0
z
0
� U
W O
LOtaA U
U
U
N
• O O
U
O
U ��•�
Cd
�D
40
Cd
Cd 0 0 a
co c Cl) a
ago O o +'
o
0 o :t� -0 ro 0.
0 4S
. r..j
s-4 OU c d' %.d p a''
U +, (� N a U U
r w j
O O • • ,� •
�D U U w fx U a
t—
x
0
0
U
a�
a
Fl.
0
0
10,
0 INZ
c
w
Lo
0
O
U
i 4-j
w
U)
.5
U
1i
.0
a�
o U
a� x
o+,
O C/) (40)
U O
�ct u
.,.., a :-.4
o
a, -0 a .N 0
Ei Ix ru
.e
0
0
V
a
0
U
a
O
J2
,Az
IC
W
l7
0
n�
F'--1
U
W
a�
W
U
O
U
Cd
O
Cd
O
'd
Cd
F�
F."
U
c� O
o
b.0 Q
c
.O U
4) �
O
� O
O 4-j
O
Q
U
O U
Cd
U
U
a U • r-,
o 4
bA � •�
N C6
O
O
O O
1-,
O
c
a O
O
o
O �
+� O
Offl
O
4)
ro
to
+�
Cd
02 (L)
0
U •�
cu
CU
,--�
O O �
a U �
U
0
U
O
� O
O
UA �,
o,
U
O
a�
O
+-+
U
O
U
0
U
au
U
U
O
O
O
V
U
.W
O
DC
� O tiA
cd��
� O �
� O
O
41
O 0
0
0
x
O
O
a�
a
0
U
0 —z
C
W
Q)
a�
W1
U
4�
. O
a
a�
cz
a�
O
O bQ
a
o
- 0 0 O �U
O U
Na +5 W C).5* o0 0
Cl) a� O a.) o O 0 p" a
� Z M U 4 u U f� o� U) u v
of
(u
�.
N 10
co
cd C0 +j
a Q AO �. o M s o
o> �
�o
0
V1 '� U 4- 4'' V `ti
O y
N O �55 p O� o v
�' u c�o+ - 0 x
w(J) W U o
0
o�
v
i• . •
O
x
0
0
V)
U
a
0
0
U
O IINZ
W
L9
+j
0
COD
W
0
00
0
oo
0
�
0
V)
0
0
O
0
0
0
80
o
0
O
UN
Q
F�
U
C
a�
O
CU
w
•�
ti
0
COD
0
(8)
0
00
0
oo
0
�
0
V)
0
0
0
C
0
0
0
80
o
0
O
UN
ON
E!?
d4
b4
69
6'1
�3
�3
6R
69
6F3
6F3
d9
H
d'
H
M
H
N
O
0
00
• M A
l�
d{
M
N
a,
.0
��i U p v O •., ,,� � V
01
C13
s
U
cz
cz
U
w
O
a.+
m
0
U
0.4
O O
N
O
`0
a�
> (n v
-�00
0 U
U
0
-W v�
r
0 U
0
0
U
as .
UE��w
x
0
0
S
el
V
0
U
Q
z
0
CO
w O
GU
O
N
� U �
cd
•� cd O
CO
co cd
U •� O
U O cd
cd o cd
CO
Cd -0 I~
cCS O
O
O
� U
� U �
404
U >)
•� >) N
O •�
—4 •�
.. _o O a�
U U U p +,
o ¢, a
�+ �
CL) • O
G� p 0 ,4
Cd
'� `•� �O
o'� 'C-4),
O
0
au
a
0
U
t- LO
a) �
t X0 b.0
(ld w
a a
Cd
a)
H
(U
w
0)
0 0
� � a
0
c+)
I
a
r.
0
N
Fg
0
A
E�
I
O
Z
IC
W
L9
Cd
u
H
W
L
0
0
O
0
'd
0 1-4 O
�U�U
0
0��
4x
�' o
� � 0 (L)
Cd� o
Cd
�;0
.� c�
00 wo
Oar
4-J bb
w�
,d w�-� c�
cd C-) .
0 cd
.Cd Cd
Cd 0
o
0 Cd
xi
', U
U >
�� cd Cd
4-j F
0
U 4.) . O
cd 0 o
U
UU C>dl
r
N O
-4-1U b
&a a 0 a�
Cd
O
�O
0 'd N
o0 V C,
VC)
�CIO
0 cu ra >,
0� U
0c �0
r. ca� 0
�
6.55 .
-4 A
148 V
4 4J
.� � bA a cd
cd�
co
w v x
y w
�.
o
Cd
�xa U4°
O
P-4 cn
0 O
x� �0
+j cd
(l
o
O
oC.)O cq
.,00 L�
0 404
� O
�. o rco
C0oo 0U
Cd
cr
v1 O � 1 O
4J
Cd
0 cd
Uv�
0 n goo
14 cd 0
4J >> � 04>
A.°��
w� Cd
C7 'zS o
41 Cd
cd
U
c�
bt
O
O
0�
c�
400
a �
U U
U
40,&0
O
� U
0
o
� U
bb M
4a U
bb
41 -
O
4-J U
U (�
� o
44
00
O
L)0
1
+j4�
0
a�
4-1 0
�
4° a)
C)00
00
N
�a
0
xu
p o
Ao0
x40.x
It-
x
0
0
0
a�
a
0
O
U
0
;,/Nz
c
W
LD
Cd
Cl)
CO
a
04
O
�e
CO
49
�C
O
n3
W
W
ck
Lo
N
o + N
O
o N C
O T
M � �
N e C
z
O O
N N
O O
N N
d
.Q
o
� M
� N
ulu
C
l�0
d
Z
10
3�
10 .�
•Q7
mui 3
c.. d
� c
�4'c°
22 U, OO
7
E O
O L �.
O
3
(0.4)
owo
W V �
Ev d
7 4' 1.- E @ o
E 41 O
�a
0
N
Ip
7
C
'0
0
v
v
i
W
ac
H
0
LO
U
x
O
0
+a
5
�j
O
U
As a Utility Commissioner, how am I supposed to
operate as it relates to performing my
responsibilities?
1. Fulfill commission duties in good faith, exercising the care prudence and concern
a person would apply to his/her own business activities.
2. Put the good of the overall organization before any other allegiances.
3. Be knowledgeable about and faithful to the organization's mission.
4. Inquire about the impact of the organization's work on the community. How does
the board know if the organization is doing a good job?
5. Be knowledgeable about the organization's operations.
6. Be involved in the board's work and concerned about the organization's problems
and prospects.
7. Ask questions — exercise healthy skepticism.
8. Focus on important and long -range issues, not small matters.
9. Be willing to make decisions.
10. Maintain a productive, respectful working relationship with other board members
and staff.
11. Attend meetings and organizational events.
12. Engage actively in committee work.
13. Prepare for meetings and read all materials provided.
14. Avoid micro - managing the organization. Take issues and concerns to the board
chair and/or general manager.
15. Assist in generating community support and resources for the organization.
16. Be familiar with the organizations governing documents and follow the provisions
of those documents.
Ten behavior rules of a Utilitv Commissioner
1. Insist on having a plan —plan your work and work your plan.
2. Do not allow personal relationships to prevent objective decisions.
3. Do no confuse size with superiority.
4. Criticize only when you have a better idea to offer.
5. Obtain all available facts before making a decision.
6. Avoid hiring Chief Executives who have risked little.
7. Prove critics wrong by deeds not arguments.
8. Do not set indistinct goals for they yield insignificant results.
9. Ensure schedules are being followed —a job normally takes the amount of time
that is allotted to it.
10. Do not meddle in day -to -day decisions but focus on the future.
1
C
KRONA 5% 3%
Other Income (Expense)
1994
2004
2007
Net Utility Plant
$ 36,204,505.00
$ 74,670,040.00
$ 74,240,715.00
Cash on Hand
$ 2,402,923.00
$ 1,839,119.00
$ 8,432,938.00
Total Operating Revenues
$ 16,430,608.00
$ 30,678,502.00
$ 45,850,292.00
Total Operating Expense
$ 14,612,475.00
$ 28,250,880.00
$ 42,250,831.00
Total Operating Income
$ 1,818,133.00
$ 2,427,622.00
$ 3,599,461.00
KRONA 5% 3%
Other Income (Expense)
$
(260,400.00)
$
(593,255.00)
$
(72,434.37)
Transfer to City of Hutchinson
$
650,000.00
$
927,400.00
$
1,077,184.65
Net Income
$
907,733.00
$
906,967.00
$
2,449,841.98
Commissioners Monthly Salary
$
439.90
$
439.90
$
439.90
1. Transfer for 2004($100,000) and 2007($165,500) does not include fees for service.
2. Transfer for 2007 does not include free roadway lighting($128,292).
If the commision were given a 3 % pay raise annually over the last 14 years, the monthly
salary would increase to $665. In addition, we are recommending the commission
president receive 50% more than the commissioners due to the extra time involved. The
presidents monthly salary would then be $1000.
Commissioner Salary = $665 monthly
Presidents Salary = $1000 monthly
Advertisement for Bids
for
CONSTRUCTION OF NEW MATERIALS CENTER AND
REMODEL OF EXISTING WAREHOUSE ON NORTH COMPLEX
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 11:00 a.m. on the 14th day of May, 2008,
and will publicly open and read aloud such Bids on the following work:
"CONSTRUCTION OF NEW MATERIALS CENTER AND
REMODEL OF EXISTING WAREHOUSE ON NORTH COMPLEX"
Proposals shall be properly endorsed and delivered in an envelope marked,
"CONSTRUCTION OF NEW MATERIALS CENTER AND REMODEL OF EXISTING
WAREHOUSE ON NORTH COMPLEX" and shall be addressed to: Hutchinson Utilities
Commission of the City of Hutchinson, 225 Michigan Street SE, Hutchinson, Minnesota
55350.
A pre -bid conference will be held at Hutchinson Utilities Commission building on
April 30, 2008 at 10:00 a.m. central time. At the meeting, a general history of the site and
description of the project will be discussed, followed by a question and answer session for
those attending. All interested Bidders are encouraged to attend the pre -bid conference.
Failure of the successful Bidder at attend the pre -bid conference and ascertain the
conditions at the site shall not constitute a basis for extra compensation. Additional site
visits by interested Bidders must be scheduled with Mr. Jason Sturges.
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 per cent (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.
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 for the furnishing of said equipment.
The work shall commence no later than ten (10) days after award of Contract.
Specifications and Plans shall be available on the 23rd day of April 2008 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 b- --J
Donald H. Walser, President
Date W--I� 2 L 0
ATTESTED
By
Dwight Bord n, Secretary
Date &C� D-4 6 0V
1
Advertisement for Bids
for
"2008 Trencher w /Ancillary Equipment including Trade of Ditch Witch Model 7020
Trencher, Backhoe and Redi -Haul Trailer"
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 1:30 p.m. on the 23rd day of April,
2008, and will publicly open and read aloud such Bids on the following equipment:
"2008 Trencher w /Ancillary Equipment including Trade of Ditch Witch Model 7020
Trencher, Backhoe and Redi -Haul Trailer"
Proposals shall be properly endorsed and delivered in an envelope marked,
"2008 Trencher w /Ancillary Equipment" 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
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.
Specifications 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.
Bye
Donald H. Walser, President
Date
ATTEST D
By
Dwig o son, ecretary
r
Date « i„ C
Advertisement for Bids
for
BUILDING, SITE AND LANDSCAPE IMPROVEMENTS
Hutchinson Utilities Commission
Hutchinson, Minnesota
Notice is hereby given that the Hutchinson Utilities Commission, hereinafter referred to as the Owner, will
receive sealed Bids at the Hutchinson Utilities office until 10:00 am central time on the 7th day of May 2008
and will publicly open and read aloud such bids on the following work:
"BUILDING, SITE AND LANDSCAPE IMPROVEMENTS"
Proposals shall be properly endorsed and delivered in a sealed envelope marked, "BUILDING, SITE
AND LANDSCAPE IMPROVEMENTS" and shall be addressed to: Hutchinson Utilities Commission,
225 Michigan Street SE, Hutchinson, Minnesota 55350. Bids received after the aforementioned time, will be
returned unopened.
A pre -bid conference /walk- through will be held with the Landscape Architect/Engineer on April 30th at 10
a.m., central time, rain or shine. The meeting will take place on the Project Site as shown on the front
cover of the Construction Drawing Bid Package. This meeting is NOT mandatory for bidders to attend, but
is highly recommended.
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 within the Specifications by
typing the official name of the Bidder at the top of the form.
Each proposal shall be accompanied by a Bid Bond, made payable to the Hutchinson Utilities Commission,
Hutchinson, Minnesota, in the amount of five percent (5 %) of the Bid, as a guarantee that the Bidder will
enter into the proposed Contract and provide a Performance Bond and Payment Bond after his Bid shall
have been accepted.
The successful Bidder shall furnish a Performance Bond and Payment Bond in an amount equal to one
hundred percent (100 %) of the Contract price to the Owner within ten (10) days after award of the Contract.
The Performance Bond and Payment Bond shall be executed by a company duly authorized to do business
in the State of Minnesota. No Bidder may withdraw his Bid of Proposal for a Period of thirty (30) days after
the 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
improvements.
Solicitation Forms and Plans and Specifications as prepared by Landform are on file at the St. Paul and
Minneapolis Builders Exchanges.
Solicitation Forms and Plans and Specifications may be obtained from Landform, 800C Butler Square,
100 North 6th Street, Minneapolis, Minnesota 55403, Phone (612) 252 -9070, Fax (612) 252.9077. Plans I
and specifications may be picked up in person, or will be mailed upon request.
The Hutchinson Utilities Commission, Hutchinson, Minnesota reserves the right to reject any and all bids,
waive irregularities if it appears to Owner that such irregularities and/or errors were made inadvertently, or to
accept such bid or bids as in the opinion of the Owner will be in the best interest of the Owner.
By LJ J A --
Donald H. Walser, President
Date k,,, 2. 6, o e
ATTES - D
By t
Dwight B son, Secretary
1
1
1
Page 1 of 1
Lin Madson
From: Steve Lancaster
Sent: Friday, May 02, 2008 9:41 AM
To: Lin Madson
Subject: Changing Invitation for bid dates
Lin I requested permission to change the dates from the commissioners. 4 have responded and all approved the
changes.
Thank you,
Steve Lancaster
Director Electric Division
Hutchinson Utilities Commission
225 Michigan St.
Hutchinson MN. 55350
(320) 234 -0547
5/2/2008
Invitation for Bids
Power Plant Improvements
Hutchinson, Minnesota
Notice is hereby given that the Hutchinson Utilities Commission of Hutchinson, Minnesota will
receive sealed Bids at their offices for the construction of Power Plant Improvements. Bids will be
accepted until 2:OOPM, Central Daylight Time, on the 29 day of May, 2008, and at such time will be
publicly opened and read aloud. Properly endorsed Bids shall be submitted in duplicate in a
sealed envelope and permanently marked "Construction Bid for Power Plant Improvements for
the Hutchinson Utilities Commission ".
Bids shall be addressed to the Hutchinson Utilities Commission (hereinafter referred to as Owner) at 225
Michigan Street SE, Hutchinson, Minnesota 55350. Bids received after the aforementioned time will be
returned unopened.
A mandatory Pre -Bid Conference will be held at the Hutchinson Power Plant, 44 Fourth Avenue, as
shown on the Drawings on May 15. 2008 at 10:OOAM, Central Daylight Time, rain or shine. The meeting will
begin with a walk through of the site and building areas scheduled for rehabilitation and restoration. A
general description of the project phases 1A and 1B Site Improvements, and Plant 1 Building Improvements,
will be given during the walk through. Following the walk through there will be a question and answer session
for those attending. Bids will not be accepted from bidders that fail to attend the mandatory
pre bid conference. Additional site visits by interested Bidders, following the pre -bid conference, must be
scheduled with the Owner's representative, Mr. Steve Lancaster.
The project will be considered by the Owner in three parts for completion of improvements. Bidders may bid
on any of the three defined parts of the project or any combination of the three. However, it is the intent of
the Owner to award any or all parts of the project to provide the greatest economic benefit to the Owner,
including multiple contracts or delaying the award of any part.
Phase 1A Site Improvements generally consists of fencing and landscaping improvements, with incidental
demolition, along the north and west side of the site.
Phase 1B Site Improvements generally consists of paving, landscaping, and storm water management
improvements on the south and east portions of the site. There is one alternate to add additional asphalt
paving in lieu of gravel drive and parking and one alternate to add grass paving in lieu of gravel drive.
Plant 1 Building Improvements generally consists of restoration of the building exterior including incidental
minor demolition, cleaning and tuck - pointing, masonry veneer construction, and deferred maintenance of
windows.
Plant 1 Building Improvements shall be substantially complete by August 15, 2008 to provide a timely start for
near building site Improvements. All Work awarded shall be substantially complete by October 1, 2008 with
final completion not later than November 1, 2008.
Copies of the solicitation forms, the Project Manual, and the Drawings are on file at the Builder's
Exchanges of Saint Paul and Minneapolis, Minnesota.
Documents may be examined by appointment at the office of the Owner (contact Mr. Steve Lancaster @
320 - 234 - 0547), or at LANDFORM, 800c Butler Square, 100 North 6th Street, Minneapolis, MN 55403
(Telephone 612 - 252 -9070) during normal business hours.
Copies of the solicitation forms, the Project Manual, and the Drawings may be obtained at the office of the
Engineer at the address above, or will be mailed upon request. A deposit is not required.
Dated May 8, 2008.
N
M
O
M
O
O
O
z
C
0
LT
M Z
0 0
LL Cl)
Z N
0�
F- 0
CO U CD
D W m
a P w to
�Wr .3 N
Z ,.O r
Z =Z -
q�
Z Q Z I'L ti
N U) o 0
W Z=Z(N04
L H UI) c
to O X
SN =a�i
Vd
0
o
W_
0
rn
H�
rn
m
N
P
U
D
L6
W
y
V
O
O
0
U)
rn
z
�
N
U
0
2
W�pMj
I- N T
0
� _ j (Y)i
� 0 L9 T
Z Z
Q
LO co
Y °o
U)
= Z0(0
w
z Q �;
�a
D
to =0
7M WaLL
7
L:
a�
.a
Q
U)
�
0
o
0
H
0
rn
E
rn
N
L
CL
U
L6
W
y
V
O
O
•L
CL
rn
c
�
N
OO
O
7�
pip
0
Q
co
co
f`
O
w
�a
D
o
7
N LO
LO
0
J Q
w
O w
M
I
n.
J
CL W
2Z
r
UVW
Q
v
�WQ
y
Q J
z_
J S
a
Q
d
z'
o�
Jq'LL
a
LU
w_�
M
WO co
�U')d
U LL
Q L Q w
CD mM0
o x a
0
O w
�Qri-
E
as
w
coo 00 coo
aior�
M M
r O
N
U)
a)
L6
X '=
ca r
H
U U —
(n (n L-
0
o N
0
N
M
H
f6 LC W
Q Q
N
w
Of
a
LAJ
N
J
0 � T
Z
9 S
Y
Q a
J Z
O
m
Q
m
c m
c
O -O
fq >
O
asi a
w
O
a�
O)
L9
CL
Amended March 26, 2008
POLICIES
POLICY ON PURCHASING
State Statute 471:345
Hutchinson Utilities Commission hereby adopts a general policy on the purchasing of
equipment, supplies and services.
All purchases shall require supervisor permission. Emergency situations may require a
deviation from this policy to insure electric and /or natural gas services to the customers
of the Hutchinson Utilities. Joint purchasing of materials, supplies and services shall be
considered with other departments only when net economic benefits can be seen.
When a tie exists between low bids, preference will be given to a local supplier.
For purchases when the estimate is more than $50,000:
1. The Hutchinson Utilities Commission will request permission to advertise for bids.
2. Specifications shall be made available to all prospective bidders.
3. Bids will be opened at a public bid opening. Date will be set in the advertisement
for bids.
4. The staff will review bids and recommend to the Hutchinson Utilities Commission
to accept the lowest responsible bidder meeting specifications.
5. Hutchinson Utilities Commission will enter into a contract with the responsible
bidder.
For purchases between $15,000 and $50,000:
1. The Hutchinson Utilities Commission staff will solicit written, informal quotations
from at least three (3) suppliers and tabulate the results.
2. Fuel purchases for electrical generation is an exception, for additional exceptions
refer to Minnesota Statutes 2003, 471.345 Uniform Municipal Contracting Law
3. Staff will recommend acceptance of the lowest responsible quote.
4. Hutchinson Utilities Commission will approve the quote.
For purchases between $1,000 and $15,000:
1. The Hutchinson Utilities Commission staff will solicit written, informal quotations
from at least two (2) suppliers and tabulate the results.
2. Staff will recommend acceptance of the lowest responsible quote to the General
Manager for approval.
For purchases of $1,000 or less:
Directors are authorized to approve requisitions via the WINS Software System for
purchases requiring a purchase order number.
If purchase order numbers are not required each Division may use their assigned credit
card.
1. Division Director /Manager will approve all item requests prior to purchasing the
item.
2. Receipts will be given to each Division Director /Manager as items are purchased
to initial, assign appropriate account number and give a description of the item
purchased; then forward to Accounting.
3. Accounting will keep a file for each Division until monthly credit card statements
are received and reconciled.
Petty cash may be used for purchases less than $25.00.
Employees may make local purchases with prior approval from their
Director /Manager. The employee has the option of using a HUC credit card, paying
cash for the item, if less than $25.00, and being reimbursed from petty cash, or
making the purchase at a local retailer with whom we have an account established.
All receipts must to be turned in to the appropriate Director /Manager to initial, assign
appropriate account number and then forward to Accounting.
CREDIT CARDS
A purchase by credit card must comply with all statutes and rules applicable to
Hutchinson Utilities Commission (HUC) purchases. Purchases must comply with the
following requirements:
Minn. Stat. 412.271, subd. 2 and 471.38, subd.1. Claims presented to HUC for payment
must be in writing and itemized. Bills from credit card companies do not contain the
detail necessary to satisfy these requirements; therefore, HUC must retain invoices and
receipts for items charged to a credit card.
The Office of the State Auditor strongly urges local government units to develop a
comprehensive credit card use policy to avoid misappropriation of funds or other misuse
of the credit card.
The following are authorized to make purchases on behalf of HUC:
General Manager
Electric Division Director
Natural Gas Division Director
Business Manager
Electric Distribution Manager
Production Manager
Technical Services Manager
One Purchasing Agent
Company purchases up to $1,000 are allowed to be made with a credit card. No
personal purchases are to be made with the credit card. Receipts will be given to each
Division Director /Manager as items are purchased to initial, assign appropriate account
numbers and give a description of the item purchased. The receipt then gets forwarded
to the accountant.
The accountant will keep a file for each Division until monthly credit card statements are
received and reconciled. The accountant has the authority to approve and question all
credit card purchases in so far as the policy applies. The full amount of the statement
must be paid each month.
FIXED ASSET CAPITALIZATION
The Hutchinson Utilities Commission (HUC) will regard fixed assets as capitalized when
all of the following criteria are met:
(1) Assets purchased, built or leased have useful lives of one year or
more.
(2) The cost of the asset (including installation) is $5,000 or more. Multiple
assets whose cost is less than $5,000 but the aggregate requestor
total is $5,000 or more are capitalized.
(3) The cost of repairing or renovating the asset is $5,000 or more and
prolongs the life of the asset.
HUC will regard the purchase of software programs as fixed assets subject to the above
capitalization policy, and will amortize over an estimated useful life of 3 years. Costs
associated with software maintenance and customer support are considered
expenditures and will not be capitalized.
Other Considerations:
(1) REPAIR is an expenditure that keeps the property in ordinary efficient
operating condition. The cost of the repair does not add to the value or
prolong the life of the asset. All repair expenditures are charged to the
appropriate department and fund.
(2) IMPROVEMENTS are expenditures for additions, alterations and
renovations that appreciably prolong the life of the asset, materially
increase its value or adapt it to a different use. Improvements of the nature
are capitalized.
Examples of Repairs vs. Improvements
Repairs= Expenditures
All items -life less than one year
All items under $5,000
Property maintenance, wall repair
Replacement of machine parts to keep
machine in normal operating condition
Property restoration (rebuilding) for
normal operations
Existing building repairs
Replacement of small sections of wiring,
pipes or light fixtures
Patching walls, minor repairs of floors,
painting, etc.
Patching driveways
Improvements= Capital!zed Assets
Life of more than one year
All items $5,000 or more
Property rebuilding
Replacement of machine parts that
prolong the useful life
Property restoration for something
different or better
Building regulation conformity
Major replacement of wiring,
lighting, pipes or sewer
Installation of floor, wall, roof,
wall covering, etc.
New driveway or major repair
Cleaning drapery, carpet, furniture New drapery, carpets, furniture
11
Depreciation Method — Straight Line over the following useful lives:
Buildings
35 -60 years
Transmission Plant (electric)
20 -35 years
Distribution Plant (electric)
20 -35 years
Building Improvement
15 -30 years
Transmission Plant (gas)
10 -45 years
Distribution Plant (gas)
10 -45 years
Generation Plant
10 -30 years
General Plant
5 -10 years
Vehicles
5 -10 years
Office Equipment
3 -5 years
Computer Equipment
3 -5 years
1