07-29-2009 HUCMRegular Meeting
July 29, 2009
Members present: President Dwight Bordson; Vice President Robert Hantge; Secretary
David Wetterling; Commissioner Craig Lenz; Commissioner Donald H. Walser; Attorney
Marc Sebora; General Manager Michael Kumm
President Bordson called the meeting to order at 3:00 p.m. and welcomed Hutchinson
resident Arle Schlecht to the meeting.
Mr. Schlecht is a trustee of the Congregational Church at 31 First Avenue Southwest in
Hutchinson. He raised some issues with a bill the church received as a result of retiring
a gas line to a house that was purchased by the church and ultimately demolished. After
discussion it was decided that GM Kumm would investigate the billing and contact Mr.
Schlecht to resolve the issue.
The minutes of June 24, 2009 regular meeting were discussed. A motion was made by
Commissioner Walser, seconded by Secretary Wetterling to approve the minutes as
written. Motion was unanimously carried.
Tom Kloss, Director of Information Technology for the City of Hutchinson, was
welcomed to the meeting. Mr. Kloss gave a presentation on Voice Over IP being
implemented to replace the existing NU- Telecom telephone system. This new system
will be managed by the City's own private network, will be maintained by the IT
department and it will pay for itself in three years. This also was a part of the budget for
2009.
Johanna Beckman, historian for HUC was welcomed to the meeting. Ms. Beckman
gave a presentation on the `History of the Hutchinson Municipal Utilities' from 1936 to
the 1960's; with the remaining years to be completed as she continues her research.
(Presentation attached.)
The June 2009 payables were discussed. A motion was made by Commissioner Lenz,
seconded by Vice President Hantge to ratify the payment of bills in the amount of
$3,124,522.80 (detailed listing in payables book). Motion was unanimously carried.
GM Kumm presented the June 2009 financial statements /budget year -to -date. After
discussion, a motion was made by Vice President Hantge, seconded by Commissioner
Lenz to approve the financial statements /budget year -to -date. Motion was unanimously
carried.
GM Kumm presented the confirmation agreement with NSP. This baseload agreement
has already been authorized and signed; we need it ratified at this meeting. After
discussion a motion was made by Secretary Wetterling, seconded by Commissioner
Lenz to ratify the confirmation agreement with NSP. Motion was unanimously carried.
(Agreement attached.)
GM Kumm is attending the MMUA 77th Annual Summer Meeting at Breezy Point,
Minnesota August 23rd through the 26th. The regular Commission meeting on August
26, 2009 will need to be changed. A motion was made by Commissioner Walser,
seconded by Secretary Wetterling to reschedule the August 26, 2009 regular
commission meeting to Monday, August 31, 2009 at 3:00 p.m. Motion was unanimously
carried.
GM Kumm presented an old tree trimming policy to be rescinded. This is the on -going
review of policies and this particular one is already a part of the policies and
requirements booklet on the electric side. A motion was made by Commissioner Lenz,
seconded by Commissioner Walser to rescind the old tree trimming policy. Motion was
unanimously carried. (Policy attached.)
GM Kumm presented changes and deletion to the policies and requirements booklet,
electric side: terminating electric service by customer; right -of -way clearing; tree
removal; and locating customer's underground utilities. After discussion, a motion was
made by Commissioner Walser, seconded by Secretary Wetterling, to approve the
changes and deletions to the policies and requirements booklet, electric side. Motion
was unanimously carried. (Policy attached.)
The changes to the policies and requirements booklet, general section: terminating
electric /natural gas services by customer was tabled. This will come back to the board
at the August meeting with more clarity.
At this time Donald H. Walser left the meeting: 4:18 p.m.
Division reports
Electric — Steve Lancaster
• All Season's Landscape and Design cannot finish the job at plant 1. We
are looking at other alternatives for the landscape and masonry projects.
• AMI project should be completed by the end of next week.
Gas — John Webster
• Presented advertisement for bids for Automated Metering Infrastructure to
be amended. The following language has been changed to read: "No
Bidder may withdraw this Bid for a Period of ninety (90) days after date of
opening of Bids." It previously read thirty (30) days. After discussion, a
motion was made by Commissioner Lenz, seconded by Vice President
Hantge to approve the amended advertisement for bids per the staff's
recommendation. Motion was unanimously carried. (Advertisement for
bids attached.)
• Employees went to Perham, MN to assist that utility using our pipe
straightening trailer.
• Installing new gas line to Judson Woods
• Installed new service to the High School because of issues with their
pressure.
• Will be attending an operations conference in Ames, IA next week.
• Will talk to Hutch Manufacturing about their load demands on their new
building.
Accounting — Jared Martig
• Finished up the punch list for the new inventory control building — replaced
concrete — fixed brick veneer — caulking around doors — checking codes
on the railing
Business — Jan Sifferath
• Started the soft parallel on V3 upgrade (billing upgrade)
• Will begin training on the new ITRON handhelds
• Need to revise our application for employment — can no longer ask about
criminal background on the application form.
• Looking into a Revenue Recovery Program to assist us in collections
Legal Update
None
Unfinished Business
None
New Business
None
There being no further business, a motion was made by Vice President Hantge,
seconded by Secretary Wetterling to adjourn the meeting at 4:45 p.m. Motion was
unanimously carried.
ATTEST:
Dwight Bordson, President
David Wetterling, Secretary
Regular Meeting
July 29, 2009
Members present: President Dwight Bordson; Vice President Robert Hantge; Secretary
David Wetterling; Commissioner Craig Lenz; Commissioner Donald H. Walser; Attorney
Marc Sebora; General Manager Michael Kumm
President Bordson called the meeting to order at 3:00 p.m. and welcomed Hutchinson
resident Arle Schlecht to the meeting.
Mr. Schlecht is a trustee of the Congregational Church at 31 First Avenue Southwest in
Hutchinson. He raised some issues with a bill the church received as a result of retiring
a gas line to a house that was purchased by the church and ultimately demolished. After
discussion it was decided that GM Kumm would investigate the billing and contact Mr.
Schlecht to resolve the issue.
The minutes of June 24, 2009 regular meeting were discussed. A motion was made by
Commissioner Walser, seconded by Secretary Wetterling to approve the minutes as
written. Motion was unanimously carried.
Tom Kloss, Director of Information Technology for the City of Hutchinson, was
welcomed to the meeting. Mr. Kloss gave a presentation on Voice Over IP being
implemented to replace the existing NU- Telecom telephone system. This new system
will be managed by the City's own private network, will be maintained by the IT
department and it will pay for itself in three years. This also was a part of the budget for
2009.
Johanna Beckman, historian for HUC was welcomed to the meeting. Ms. Beckman
gave a presentation on the 'History of the Hutchinson Municipal Utilities' from 1936 to
the 1960's; with the remaining years to be completed as she continues her research.
(Presentation attached.)
The June 2009 payables were discussed. A motion was made by Commissioner Lenz,
seconded by Vice President Hantge to ratify the payment of bills in the amount of
$3,124,522.80 (detailed listing in payables book). Motion was unanimously carried.
GM Kumm presented the June 2009 financial statements /budget year -to -date. After
discussion, a motion was made by Vice President Hantge, seconded by Commissioner
Lenz to approve the financial statements /budget year -to -date. Motion was unanimously
carried.
GM Kumm presented the confirmation agreement with NSP. This baseload agreement
has already been authorized and signed; we need it ratified at this meeting. After
discussion a motion was made by Secretary Wetterling, seconded by Commissioner
Lenz to ratify the confirmation agreement with NSP. Motion was unanimously carried.
(Agreement attached.)
GM Kumm is attending the MMUA 77th Annual Summer Meeting at Breezy Point,
Minnesota August 23rd through the 26th. The regular Commission meeting on August
26, 2009 will need to be changed. A motion was made by Commissioner Walser,
seconded by Secretary Wetterling to reschedule the August 26, 2009 regular
commission meeting to Monday, August 31, 2009 at 3:00 p.m. Motion was unanimously
carried.
GM Kumm presented an old tree trimming policy to be rescinded. This is the on -going
review of policies and this particular one is already a part of the policies and
requirements booklet on the electric side. A motion was made by Commissioner Lenz,
seconded by Commissioner Walser to rescind the old tree trimming policy. Motion was
unanimously carried. (Policy attached.)
GM Kumm presented changes and deletion to the policies and requirements booklet,
electric side: terminating electric service by customer; right -of -way clearing; tree
removal; and locating customer's underground utilities. After discussion, a motion was
made by Commissioner Walser, seconded by Secretary Wetterling, to approve the
changes and deletions to the policies and requirements booklet, electric side. Motion
was unanimously carried. (Policy attached.)
The changes to the policies and requirements booklet, general section: terminating
electric /natural gas services by customer was tabled. This will come back to the board
at the August meeting with more clarity.
At this time Donald H. Walser left the meeting: 4:18 p.m.
Division reports
Electric — Steve Lancaster
• All Season's Landscape and Design cannot finish the job at plant 1. We
are looking at other alternatives for the landscape and masonry projects.
• AMI project should be completed by the end of next week.
Gas — John Webster
• Presented advertisement for bids for Automated Metering Infrastructure to
be amended. The following language has been changed to read: "No
Bidder may withdraw this Bid for a Period of ninety (90) days after date of
opening of Bids." It previously read thirty (30) days. After discussion, a
motion was made by Commissioner Lenz, seconded by Vice President
Hantge to approve the amended advertisement for bids per the staff's
recommendation. Motion was unanimously carried. (Advertisement for
bids attached.)
• Employees went to Perham, MN to assist that utility using our pipe
straightening trailer.
• Installing new gas line to Judson Woods
• Installed new service to the High School because of issues with their
pressure.
• Will be attending an operations conference in Ames, IA next week.
• Will talk to Hutch Manufacturing about their load demands on their new
building.
Accounting — Jared Martig
• Finished up the punch list for the new inventory control building — replaced
concrete — fixed brick veneer — caulking around doors — checking codes
on the railing
Business — Jan Sifferath
• Started the soft parallel on V3 upgrade (billing upgrade)
• Will begin training on the new ITRON handhelds
• Need to revise our application for employment — can no longer ask about
criminal background on the application form.
• Looking into a Revenue Recovery Program to assist us in collections
Legal Update
None
Unfinished Business
None
New Business
None
There being no further business, a motion was
seconded by Secretary Wetterling to adjourn the
unanimously carried.
ATTEST: � '�k'
D t B rdson, President
made by Vice President Hantge,
meetiy at 4:45 p.m. Motion was
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Jul, 1(), 2009 10:07AM
WNFIRMATION NT
No. 0470 P. 1
This Confirmation Agreement ( "Agreement ") shall confirm the agreement reached nn Silly
LO b 2009 by and between Northern States bower Company, a Mitutesota corporation
( "NSP ") and the Hutchinson Utilities Commission ( "HUG ") (heroinafter NSP and HUC aro
sornethnos referred to singly as "Party" and colloctivoly as "Parties)" with respect to the
purchase of Commodity under the terms and conditions as follows:
seller: NSP
Buyer.- HUC
Governing
Agreement: Mid - Continent Energy Marketers Association (°`MEMA ") Capacity
and Energy Tariff, effective February 27, 2009 (for energy supply
arrangements) and the Midwest Indopendent System Operator
( "MISO ") Transinission and Energy Markets Tariff ("TEMT" ),
effective March 1, 2005 (for delivery arrnngetnents), as both are
currently in effect and as they may be modified during the torm of this
Agreement-
Contract Terms All hours from January 1, 2010 through December 31, 2012
Commodity: Firm (LD) energy pursuant to N EMA Schedule P_ There is no
capacity associated with this transaction. There are no ancillary
services associated with title transaction, Tho onorgy provided under
this agreement is must take energy of the Contract Quantity specified
below.
Contract Quantity: 15 MW around the clock for a total of 394,560 MWh.
Delivery Point: GRE.HUC. The Parties may use an alternate delivery point by
mutual agreement,
Energy Scheduling: All schcdulos for energy under this Agreement shall be made in the
M180 Real Time Energy Market. The Parties shall arrange a
Financial Bilateral Transaction at the Delivery Point using standard
MISO scheduling practices.
Energy Pricing: $49.46 per MWh.
Transmission and
Dosses: HUC shall be responsible for any and all applicable charges MISO
may assess from the Delivery Point or from any agreed upon alternate
delivery point associated with the delivery of Commodity under this
Agreement.
1 of 3 pages
Jul, 10. 2009 10:07AM
No. 0478 F. 2
Special 'Perms: If either Party ( "Party X ") has comnicrcially reasonable grounds to
believe that the other Party's ( "Party Y ") creditworthiness or i
performance tinder any Transaction has become unsatisfactory, Party
X will provide Party Y with written notice requesting performance
assurance In the form of cash or a letter of credit (in a forni and from
an institution acceptable to Party X in its reasonably exercised
discretion) in an amount determined by Party X in a commercially
reasonable manner. Upon receipt of such notice, Party Y shall have
two (2) Business Days to provide such performance assurance to
Party X. Failure by Party Y to provide such performance assurance
within the time specified above shall be. deemed an Event of Default
hereunder.
If during the term of this Agreement, HUC is no longer a member of
the Minnesota Municipal Utilities Association, HUC hereby agrees to
become a member of MEMA so as to provide continuous membership
in MEMA, directly or indirectly, throughout the Contract Terin,
The Parties are award that during the Contract Term of this
Agreement, it Is possible that federal legislation capping or limiting
carbon emissions may be enacted, and that such legislation may
involve a cap and trade mechanism whereby carbon emissions
allowances or credits can be transferred from one entity to another. In
the event any carbon emissions legislation is enacted, the Parties
agree that in considering modifications to Ibis Agreement to take into
account carbon emissions legislation, they will apply the following
principles: (1) it is appropriate for NSP to recover through the mites
for the Commodity under this Agreement, the costs of emission
allowances that it may need to acquire to generate power within
applicable limits; (2) to the extent that NSP as a retail service provider
is granted emissions allowances by virtue of its retail load, it will be
appropriate for NSP to apply those allowances or credits to its retail
service; (3) if HUC obtains emissions allowances by virtue of its own
retail load, it may provide those allowances to NSP to oliminaw or
offset the allowances or credits that NSP would otherwise need -to
obtain to provide the Commodity, thereby allowing the Customer to
lower the emissions related costs that NSP may otherwise seek to
charge it; and (4) if NSP obtains any allowances or credits by virtue
of its provision of tho Commodity to HUC and other similar
wholesale services to other customers, for purposes of assessing any
responsibility for emissions allowance costs, NSP will attribute to
HUC an equitable share of such allowances, In the event that the
Parties are not able to reach agreement on such modifications within
fifteen (15) days of the carbon emissions enactment date ("Enactment
Dote "), this Agreement shall terminate one -year from the Enactment
Date and NSP shall immediately increase the pricing, retroactively, if
necessary, to matchNSP's costs to continue to provide this service for
that one -year period. This provision shall apply only to a change
2 of 3 pages
JuI - 10. 2009 10:07AM No. 0478 F. 3
required for treatment of carbon emissions, not for changes in market
conditions.
The terms and condition9 and the rates for service specified in this Agreement shall remain in
effect for the Contract Term. Absent the Parties' written agreement, this Agreement shall not
be subject to change by application of either Party pursuant to Section 205 or 206 of the
Federal Power Act. Absent the agreement of both parties to the proposed change, the
standard of review for changes to this Agreement whether proposed by a Party, a norm -party
or the Pederal Energy Regulatory Commission acting sua sponge shall be the "public interest"
standard of review set forth in United Gas Pipe Line v. Mobile Gas Service Corp., 350 U.S.
332 (1956) and Federal Power Commission v. Yierrii Page Power Co., 350 U.S. 348
(1956) (the "Mobile- Sierra doctrine ").
Each Party acknowledges that the other Party's responsibilities and obligations under the
Governing Agreement and this Agreement are those of that Party`s merchant function, not of
its transmission function, and that neither the Governing Agreement, nor this Agreement,
imposes any responsibilities or obligations on the other Party's transmission function.
The deahnaker has verified that tile terms and conditions of the Agreement correctly
reflect the negotiated transaction.
N-URTtfflRN STATES POWER COMPANY,
a, Minnesota corporatlon
By:
Name: Thomas Imbler
I`itle: 'Vice President, Commercial Operations
XG01 Energy Services Lie—, agent for
Northern States Polder Company
I -TUTCH NSON UTILITIES COMMISSION
Date: 'A °`�
y: 011�4vl bate:
Name; Michael lCumm
Title: General Manager
Please execute and rehire to Xcel Energy Service Int.'s Contract Administration
department at fair number 303- 571 -6240, or by an email with a pdf attacliment to
Brandon.Cole a xcelenergy.com.
3 of 3 pages
TREE TRIMMING POLICY
We trim only for our own line clearance.
Tree Removal
Tree is responsibility of owner! We will assist in the following manner:
1. Small single phase feeder: We will de- energize and notify customers.
2. Small three phase feeder: We will attempt to switch around load; if we
can't, we will de- energize.
3. Major three phase feeder: Loop feed and isolate if possible, de- energize.
Charges:
Hutchinson Utilities Commission will not charge for less than 3 man hours expended
and 1 hour truck time. Any time expended in excess of the above will be at normal labor
and truck rate.
Any damage to distribution system caused by tree removal, will be charged to
owner /trimmer.
RIGHT -OF -WAY CLEARING
HUC shall maintain right -of -way clearance on all overhead and underground facilities.
TREE REMOVAL OR TRIMMING
Tree removal or trimming for other than right -of -way clearance is the responsibility of
the property owner. Please notify HUC with any questions concerning tree removal or
trimming fGF GlarifiGation of assistanGe.
Any damage to the HUC electrical distribution system caused by tree removal or
trimming by the property owner or their representatives will be Gharged billed to the
property owner.
LOCATING CUSTOMER'S UNDERGROUND UTILITIES
HUC shall locate and mark underground electrical distribution facilities at no charge to
the customer. HUC shall not locate customer owned private facilities.
Advertisement for Bids
for
"Automated Metering Infrastructure"
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 23rd of September 2009,
and will publicly open and read aloud such Bids on the following work:
"Automated Metering Infrastructure"
Bids shall be properly endorsed and delivered in an envelope marked, "Automated
Metering Infrastructure — Mesh" or "Automated Metering Infrastructure — Point to
Multipoint" and shall be addressed to: Hutchinson Utilities Commission of the City of
Hutchinson, 225 Michigan Street SE, Hutchinson, Minnesota 55350.
Bids shall be supplied in both hardcopy and electronic format. Send two electronic
CD's and three (3) hard copy responses to the contact listed below:
Administrative Coordinator
Hutchinson Utilities Commission
225 Michigan Street SE
Hutchinson, MN 55350
The name and address of the Bidder should be clearly indicated on the outside of
the package containing the bid. When multiple firms or parties will be jointly submitting a
bid, the bid should identify the lead firm who will act as the prime contractor to the Owner.
All Bids shall be submitted in triplicate on the Bidder's own letterhead, in facsimile of
the Bid Form enclosed in the Specifications, or by utilizing the Bid Form enclosed with the
Specifications by typing the official name of the Bidder at the top of the form.
Each Bid 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°/x) of the Contract price to the Owner prior to the approval of the
Contract.
No Bidder may withdraw his Bid for a Period of ninety (90) days after date of
opening of Bids.
Specifications may be obtained by contacting Robert J. Herbst, at Power System
Engineering, Inc, 1532 W. Broadway, Ste 100, Madison, WI 53713. Mr. Herbst may be
reached at 608- 268 -3504.
The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson,
Minnesota reserves the right to reject any and all bids, or bid irregularities.
By 12-z-6—
Erwightt ords n, President
Date - U 1
ATTESTED
David Wettd"rlii'ig, S- cretary
Date 71'z'� Z) 7