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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. 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'Eb i V Ln W c (10 1 +� S V C 0 c u �s *-O M O� .r. a) to f-- W +..i N U�Q El 1-0 ► , 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