11-25-2008 HUCMRegular Meeting
November 25, 2008
Members present: President Donald H. Walser; Vice President David Wetterling,
Secretary Dwight Bordson; Attorney Marc Sebora; General Manager Michael Kumm.
Members absent: Commissioner Craig Lenz; Commissioner Robert Hantge
President Walser called the meeting to order at 3:02 p.m.
The minutes of the October 29, 2008 regular meeting were reviewed. A motion was
made by Vice President Wetterling, seconded by Secretary Bordson to approve the
minutes as written. Motion was unanimously carried.
Nate Smutka, Accounts Supervisor, presented the charge-offs. At the time of the
printing of this report, one payment has been received. The total dollar amount to be
written off will be less than what is showing on the report. After discussion, a motion
was made by Vice President Wetterling, seconded by Secretary Bordson to approve the
charge-offs (detailed listing on page 2,719 of the November general journal). Motion
was unanimously carried.
Jon Guthmiller, Energy Conservation Administrator, presented the CIP Report for 2009.
It was also noted that Mr. Guthmiller has completed the American Public Power
Association Key Accounts Program and is now a key accounts representative for HUC
as it relates to the commercial/industrial base customers in the state of Minnesota. After
discussion, a motion was made by Secretary Bordson, seconded by Vice President
Wetterling to approve the CIP report for 2009. Motion was unanimously carried.
Jason Sturges, Inventory Agent, presented the HUC vehicle maintenance changes.
Meetings have been held with City personnel from the HATS facility to discuss the
transition of maintenance to HUC. It was decided, based on past performance and
competitive pricing, HUC will stay with the vendors and/or service centers that HATS
was using for the maintenance of HUC’s vehicles. Therefore it will not be necessary to
develop specifications and go out for bids for vehicle maintenance.
GM Kumm presented the October 2008 payables. After discussion, a motion was made
by Secretary Bordson, seconded by Vice President Wetterling to ratify the payment of
bills in the amount of $3,167,086.80 (detailed listing in payables book). Motion was
unanimously carried.
GM Kumm presented the October financial statements/budget year-to-date. After
discussion, a motion was made by Vice President Wetterling, seconded by Secretary
Bordson to approve the October financial statements/budget year-to-date. Motion was
unanimously carried.
GM Kumm presented the 2009 budget. Discussion was held regarding conducting a
rate study in 2010 to analyze HUC electric and natural gas rates. This timeline is in line
with our business plan: three years – informal study; five years – formal study.
GM Kumm talked about the need to be more pro-active in communicating to the
community as it relates to what HUC is doing with energy efficiency projects. GM Kumm
will meet with Bill Radio from MRES who is scheduling meetings with local newspapers
to discuss the status of these energy projects. Suggestions were offered by the Board
as to what messages they would like to see presented.
GM Kumm presented the changes to the policies and requirements booklet. A motion
was made by Vice President Wetterling, seconded by Secretary Bordson to approve the
changes to the policies and requirements booklet. Motion was unanimously carried.
John Webster, Director Natural Gas Division, presented the 3M transportation
agreement. After discussion, a motion was made by Vice President Wetterling,
seconded by Secretary Bordson, to approve the 3M transportation agreement as per
their suggested clarification changes. Motion was unanimously carried.
Division reports
Gas – John Webster
Joining task force with APGA to implement the best practice for natural
gas vehicles
99 natural gas service lines installed: 63 outside city limits; 36 within city
limits
Business – Jan Sifferath
Long-term supplier agreement with JT Services is not working out. Will
amend agreement with Border States who will also provide us with street
light poles. This will be an agenda item at the December meeting.
The League of MN Cities has retained an attorney as it relates to our new
inventory building that collapsed.
Electric – Steve Lancaster
Conducting tour of power plant tonight for Cub Scouts
Legal Update
Nothing to report
Unfinished Business
None
New Business
President Walser appointed himself Vice President Wetterling and Secretary
Bordson to a committee to look into compensation issues. (See minutes of
December 30, 2008.)
There being no further business, a motion was made by Vice President Wetterling,
seconded by Secretary Bordson to adjourn the meeting at 5:20 p.m. Motion was
unanimously carried.
______________________
Dwight Bordson, Secretary
ATTEST: ________________________
Donald H. Walser, President
Regular Meeting
November 25, 2008
Members present: President Donald H. Walser; Vice President David Wetterling,
Secretary Dwight Bordson; Attorney Marc Sebora; General Manager Michael Kumm.
Members absent: Commissioner Craig Lenz; Commissioner Robert Hantge
President Walser called the meeting to order at 3:02 p.m.
The minutes of the October 29, 2008 regular meeting were reviewed. A motion was
made by Vice President Wetterling, seconded by Secretary Bordson to approve the
minutes as written. Motion was unanimously carried.
Nate Smutka, Accounts Supervisor, presented the charge -offs. At the time of the
printing of this report, one payment has been received. The total dollar amount to be
written off will be less than what is showing on the report. After discussion, a motion
was made by Vice President Wetterling, seconded by Secretary Bordson to approve the
charge -offs (detailed listing on page 2,719 of the November general journal). Motion
was unanimously carried.
Jon Guthmiller, Energy Conservation Administrator, presented the CIP Report for 2009.
It was also noted that Mr. Guthmiller has completed the American Public Power
Association Key Accounts Program and is now a key accounts representative for HUC
as it relates to the commercial /industrial base customers in the state of Minnesota. After
discussion, a motion was made by Secretary Bordson, seconded by Vice President
Wetterling to approve the CIP report for 2009. Motion was unanimously carried.
Jason Sturges, Inventory Agent, presented the HUC vehicle maintenance changes.
Meetings have been held with City personnel from the HATS facility to discuss the
transition of maintenance to HUC. It was decided, based on past performance and
competitive pricing, HUC will stay with the vendors and /or service centers that HATS
was using for the maintenance of HUC's vehicles. Therefore it will not be necessary to
develop specifications and go out for bids for vehicle maintenance.
GM Kumm presented the October 2008 payables. After discussion, a motion was made
by Secretary Bordson, seconded by Vice President Wetterling to ratify the payment of
bills in the amount of $3,167,086.80 (detailed listing in payables book). Motion was
unanimously carried.
GM Kumm presented the October financial statements /budget year -to -date. After
discussion, a motion was made by Vice President Wetterling, seconded by Secretary
Bordson to approve the October financial statements /budget year -to -date. Motion was
unanimously carried.
GM Kumm presented the 2009 budget. Discussion was held regarding conducting a
rate study in 2010 to analyze HUC electric and natural gas rates. This timeline is in line
with our business plan: three years — informal study; five years — formal study.
GM Kumm talked about the need to be more pro- active in communicating to the
community as it relates to what HUC is doing with energy efficiency projects. GM Kumm
will meet with Bill Radio from MRES who is scheduling meetings with local newspapers
to discuss the status of these energy projects. Suggestions were offered by the Board
as to what messages they would like to see presented.
GM Kumm presented the changes to the policies and requirements booklet. A motion
was made by Vice President Wetterling, seconded by Secretary Bordson to approve the
changes to the policies and requirements booklet. Motion was unanimously carried.
John Webster, Director Natural Gas Division, presented the 3M transportation
agreement. After discussion, a motion was made by Vice President Wetterling,
seconded by Secretary Bordson, to approve the 3M transportation agreement as per
their suggested clarification changes. Motion was unanimously carried.
Division reports
Gas — John Webster
Joining task force with APGA to implement the best practice for natural
gas vehicles
99 natural gas service lines installed: 63 outside city limits; 36 within city
limits
Business — Jan Sifferath
Long -term supplier agreement with JT Services is not working out. Will
amend agreement with Border States who will also provide us with street
light poles. This will be an agenda item at the December meeting.
The League of MN Cities has retained an attorney as it relates to our new
inventory building that collapsed.
Electric — Steve Lancaster
• Conducting tour of power plant tonight for Cub Scouts
Legal Update
Nothing to report
Unfinished Business
None
New Business himself
President Walser appointed IYV IPM m Ident Wetter and Secretary Bordson to
a committee to look into compensation issues.
See minutes of December 30, 2008
There being no further business, a motion was made by Vice President Wetterling,
seconded by Secretary Bordson to adjourn the meeting at 5:20 p.m. Motion was
unanimously carried.
ATTEST: I-,- !,..
Donald H. Walser, President
1
DWW B dson, Secretary