06-25-2008 HUCMRegular Meeting
June 25, 2008
Members present: President Donald H. Walser; Vice President David Wetterling;
Secretary Dwight Bordson; Commissioner Robert Hantge; General Manager Michael
Kumm
Members absent: Commissioner Craig Lenz; Attorney Marc Sebora
President Walser called the meeting to order at 3:00 p.m.
The minutes of the June 2, 2008 regular meeting (May’s rescheduled meeting) were
reviewed. A motion was made by Commissioner Hantge, seconded by Secretary
Bordson to approve the minutes as written. Motion was unanimously carried.
GM Kumm presented the payables for ratification. After discussion, a motion was made
by Vice President Wetterling, seconded by Secretary Bordson to ratify the payment of
bills in the amount of $4,069,152.04 (detailed listing in payables book). Motion was
unanimously carried.
GM Kumm presented the financial statements/budget year-to-date for approval. 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.
Discussion was held on the strategic plan – vision statement seven – strategic
objectives.
Division reports
Business – Jan Sifferath
Billing software hard parallel is going better than expected – go live 7-21-08
Waiting for signed contracts before breaking ground for new materials center
Jan thanked the board for her tuition reimbursement – she has graduated
Electric – Steve Lancaster
Using new fuel oil tanks – old ones will be removed
Windows are being installed for the power plant improvements – painters are
doing their preparation
Chiller building is not progressing as quickly as we’d like
Staying informed regarding the construction of the round-a-bout
Had three outages in the last two days, reports will be sent to Commissioners
regarding these outages
Gas – John Webster
Nine customers outside the city limits on Adams Street have asked for new
natural gas services
nd
Currently installing new natural gas services outside city limits at 202 Circle
nd
and 202 Court
Commercial customers outside the city limits on Highway 15 North have
asked for natural gas services
Minnesota Office of Pipeline Safety will be here in July to do their annual audit
Will speak with residents at the Village Cooperative regarding disaster
recovery and to discuss our tornado response plan
Legal Update
None
G M Kumm reported that the charter commission will meet to discuss changing the City
Charter as it relates to HUC Commission members. He went over HUC action plan
explaining tasks that are completed and/or in progress for the goals set for 2008. He
also reported that the PILOT committee, consisting of General Manager Kumm,
Commissioner Lenz, City Administrator Plotz, Finance Director Ken Merrill, and Mayor
Steve Cook, will reconvene to discuss Payment In Lieu Of Taxes. He also reported that
the DEED Grant has been signed by City, and will be delivered to the State Capitol on
Thursday.
Unfinished Business
Purchasing Limit:
The law on purchasing will be changed as of August 1, 2008. Some things will
change for HUC but not all changes will affect us. We will revisit this when the
law goes into effect.
Round-Up Program:
Jan Sifferath reported that the Secretary of State would set up a trust fund and
the State would accept applications to be recipients of the fund – possibly the
Hutchinson Foundation. She also explained how the program works. Utility bills
would be rounded up to the nearest dollar, with each statement showing how
much is going into the fund. Jan will check with our new billing software to see if
that could be built into the new billing system. She will also check with the
Secretary of State and get more information on ‘non profit organizations’. We will
revisit this when all the information has been gathered.
DEED Grant:
The application has been passed by City Council; HUC needs to approve/adopt
Resolution #1004, Greater Minnesota Business Development Public
Infrastructure Grant Biomass Energy Program. After discussion, a motion was
made by Commissioner Hangte, seconded by Vice President Wetterling to
approve/adopt Resolution #1004 Greater Minnesota Business Development
Public Infrastructure Grant Biomass Energy Program. Motion was unanimously
carried.
Reconvene PILOT Committee:
A date will be determined for a meeting to discuss Payment In Lieu Of Taxes.
New Business
None
There being no further business, a motion was made by Vice President Wetterling,
seconded by Secretary Bordson to adjourn the meeting at 3:53 p.m. Motion was
unanimously carried.
___________________________
Dwight Bordson, Secretary
ATTEST:______________________________
Donald H. Walser, President
1
Regular Meeting
June 25, 2008
Members present: President Donald H. Walser; Vice President David Wetterling;
Secretary Dwight Bordson; Commissioner Robert Hantge; General Manager Michael
Kumm
Members absent: Commissioner Craig Lenz; Attorney Marc Sebora
President Walser called the meeting to order at 3:00 p.m.
The minutes of the June 2, 2008 regular meeting (May's rescheduled meeting) were
reviewed. A motion was made by Commissioner Hantge, seconded by Secretary
Bordson to approve the minutes as written. Motion was unanimously carried.
GM Kumm presented the payables for ratification. After discussion, a motion was made
by Vice President Wetterling, seconded by Secretary Bordson to ratify the payment of
bills in the amount of $4,069,152.04 (detailed listing in payables book). Motion was
unanimously carried.
GM Kumm presented the financial statements /budget year -to -date for approval. 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.
Discussion was held on the strategic plan — vision statement seven — strategic
objectives.
Division reports
Business — Jan Sifferath
• Billing software hard parallel is going better than expected — go live 7 -21 -08
• Waiting for signed contracts before breaking ground for new materials center
• Jan thanked the board for her tuition reimbursement — she has graduated
Electric — Steve Lancaster
• Using new fuel oil tanks — old ones will be removed
• Windows are being installed for the power plant improvements — painters are
doing their preparation
• Chiller building is not progressing as quickly as we'd like
• Staying informed regarding the construction of the round -a -bout
• Had three outages in the last two days, reports will be sent to Commissioners
regarding these outages
Gas — John Webster
• Nine customers outside the city limits on Adams Street have asked for new
natural gas services
• Currently installing new natural gas services outside city limits at 202nd Circle
and 202nd Court
• Commercial customers outside the city limits on Highway 15 North have
asked for natural gas services
• Minnesota Office of Pipeline Safety will be here in July to do their annual audit
• Will speak with residents at the Village Cooperative regarding disaster
recovery and to discuss our tornado response plan
Legal Update
None
G M Kumm reported that the charter commission will meet to discuss changing the City
Charter as it relates to HUC Commission members. He went over HUC action plan
explaining tasks that are completed and /or in progress for the goals set for 2008. He
also reported that the PILOT committee, consisting of General Manager Kumm,
Commissioner Lenz, City Administrator Plotz, Finance Director Ken Merrill, and Mayor
Steve Cook, will reconvene to discuss Payment In Lieu Of Taxes. He also reported that
the DEED Grant has been signed by City, and will be delivered to the State Capitol on
Thursday.
Unfinished Business
Purchasing Limit:
The law on purchasing will be changed as of August 1, 2008. Some things will
change for HUC but not all changes will affect us. We will revisit this when the
law goes into effect.
Round -Up Program:
Jan Sifferath reported that the Secretary of State would set up a trust fund and
the State would accept applications to be recipients of the fund — possibly the
Hutchinson Foundation. She also explained how the program works. Utility bills
would be rounded up to the nearest dollar, with each statement showing how
much is going into the fund. Jan will check with our new billing software to see if
that could be built into the new billing system. She will also check with the
Secretary of State and get more information on `non profit organizations'. We will
revisit this when all the information has been gathered.
DEED Grant:
The application has been passed by City Council; HUC needs to approve /adopt
Resolution #1004, Greater Minnesota Business Development Public
Infrastructure Grant Biomass Energy Program. After discussion, a motion was
made by Commissioner Hangte, seconded by Vice President Wetterling to
approve /adopt Resolution #1004 Greater Minnesota Business Development
Public Infrastructure Grant Biomass Energy Program. Motion was unanimously
carried.
Reconvene PILOT Committee:
A date will be determined for a meeting to discuss Payment In Lieu Of Taxes.
New Business
None
There being no further business, a motion was made by Vice President Wetterling,
seconded by Secretary Bordson to adjourn the meeting at 3:53 p.m. Motion was
unanimously carried.
ATTEST: —d I
Donald H. Walser; President
1
Dwight rdso , Secretary
1
Greater Minnesota Business Development Public Infrastructure Grant Program — 2007Interim HUC RESOLUTION 1004
LOCAL GOVERNMENT RESOLUTION
GREATER MINNESOTA BUSINESS DEVELOPMENT PUBLIC INFRASTRUCTURE GRANT
BIOMASS ENERGY PROGRAM
Applicants must adopt and submit the following resolution. This resolution must be adopted prior to submission of the forms
package.
BE IT RESOLVED that Hutchinson Utilities Commission (Applicant) act as the legal sponsor for project(s) contained in the
Greater Minnesota Business Development Public Infrastructure Grant — Biomass Energy Application to be submitted on June 26,
2008 and that President of Hutchinson Utilities Commission (Title of First Authorized Official) and General Manager of
Hutchinson Utilities Commission (Title of Second Authorized Official) are hereby authorized to apply to the Department of
Employment and Economic Development for funding of this project on behalf of Hutchinson Utilities Commission (Applicant).
BE IT FURTHER RESOLVED that Hutchinson Utilities Commission Applicant) has the legal authority to apply for financial
assistance, and the institutional, managerial, and financial capability to ensure adequate construction, operation, maintenance and
replacement of the proposed project for its design life.
BE IT FURTHER RESOLVED that Hutchinson Utilities Commission Applicant) has not violated any Federal, State, or local laws
pertaining to fraud, bribery, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice.
BE IT FURTHER RESOLVED that upon approval of its application by the state, Hutchinson Utilities Commission (Applicant)
will enter into an agreement with the State of Minnesota for the above - referenced project(s), and;
BE IT FURTHER RESOLVED that upon approval of its application by the state, Hutchinson Utilities Commission (Applicant)
will commit $1,000,000 towards the local match requirement.
Hutchinson Utilities Commission (Applicant) certifies that it will comply with all applicable laws, regulations, and rules of the
Greater Minnesota Business Development Public Infrastructure Grant — Biomass Energy Program.
NOW, THEREFORE BE IT RESOLVED that President of Hutchinson Utilities Commission (Title of First Authorized Official)
and General Manager of Hutchinson Utilities Commission (Second Authorized Official), or their successors in office, are hereby
authorized to execute such agreements, and amendments thereto, as are necessary to implement the project(s) on behalf of the
applicant.
I CERTIFY THAT the above resolution was adopted by the Hutchinson City Council of Hutchinson Utilities Commission
(Applicant) on June 24, 2008 (Date).
SIGNED: WITNESSED: �� ✓�`� �� /��/�
(First Authorized Official) (Signature)
Donald Walser
President Hutchinson Utilities Commission
Administrative Coordinator June 26 2008
(Title) (Date)
(z41/D?
SIGNED:
(Second Authorized Official)
Michael Kumm
General Manager— Hutchinson Utilities Commission
(Title)
(Date)
(Title)
(Date)
WITNESSED:
(Signature)
Administrative. - Coordinator June 26, 2008
(Title)
(Date)
11