09-30-2009 HUCMRegular Meeting
September 30, 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.
The minutes of the August 31, 2009 regular meeting were reviewed. A motion was
made by Vice President Hantge, seconded by Commissioner Walser to approve the
minutes as written. Motion was unanimously carried.
Ray Wahle and Jeff Peters of Missouri River Energy Services were welcomed to the
meeting. They gave an update on the Big Stone II Project. All permits and certificate of
need have been completed. With the recent pulling out of Otter Tail Power, along with
the pulling out of two other utilities, we do face challenges with this project. MRES is
continuing to talk with other investors and will work toward keeping this project on track.
MRES will file before December 1St when it will be determined who the added investors
will be. After further discussion the board thanked MRES for the valuable work they're
doing and continuing to do so that Big Stone II Project will come to fruition.
At this time Vice President Robert Hantge left the meeting — 4:03 p.m.
The August 2009 payables were discussed. After discussion, a motion was made by
Secretary Wetterling, seconded by Commissioner Lenz to ratify the payment of bills in
the amount of $2,797,854.77 (detailed listing in payables book). Motion was
unanimously carried.
GM Kumm presented the August 2009 financial statements /budget year -to -date. After
discussion, a motion was made by Commissioner Lenz, seconded by Secretary
Wetterling to approve the financial statements /budget year -to -date. Motion was
unanimously carried.
Discussion was held on comp time issue. This was brought to the board's attention in
December when the hours accumulated had reached a significant number of hours. At
that time arrangements were made with the affected employees and the number of
hours has been reduced and is now manageable.
John Webster discussed the AMI bid tabulation. The bid tabulation has been forwarded
to our consultants for further evaluation. The awarding of the bid will occur sometime in
December, after the Smart Metering Grant has been announced. (Bid tab attached.)
GM Kumm presented the 2009 -2010 safety management program contract. This is our
annual MMUA Safety Management Program. After discussion a motion was made by
Commissioner Walser, seconded by Secretary Wetterling to approve the 2009 -2010
safety management program contract. Motion was unanimously carried. (Contract
attached.)
John Webster presented the changes to the policies and requirements booklet, gas
side, sections: Natural Gas Service Requirements and Charges; Temporary Service;
and Sealing of Meters. After discussion it was decided to table the changes and add
additional language for gas line pressure testing outside the city limits.
Steve Lancaster presented requisition #003722 for two air compressors replacement
system for plant #2 from John Henry Foster. Our current air compressor is a 1994 unit,
it runs 24/7 365 days a year and it just went down. We have repaired it but it will
eventually fail. After discussion, a motion was made by Commissioner Lenz, seconded
by Secretary Wetterling to approve requisition #003722 for two air compressors
replacement system for plant #2 from John Henry Foster for $29,326.80. Motion was
unanimously carried. (Requisition attached.)
Division reports
Electric — Steve Lancaster
• Boiler and machinery inspection this past week — went well
• Working on the landscaping at Plant 1
• Conversions are complete
• Working on 2010 budget
Accounting — Jared Martig
• High School senior is shadowing about an hour a day
• Jason Sturges and Roberta Yates have moved into the new inventory
building
• All gas inventory is in and most of the electric is in
• Will give tours during the open house
Gas — John Webster
• Natural gas to Judson Woods is complete
• Sent letter of interest for gas service along highway 15 south
• Getting ready for the open house
Business — Jan Sifferath
• There will be about a 12.6% increase in the premiums for health insurance
— more information to follow — meeting scheduled with Rich Westlund
Legal update — none
Unfinished Business
GM Kumm has talked with Miles Sepelt and has some dates for the committee to
meet regarding the Industrial Park.
New Business
GM Kumm asked for authorization to approve a purchase order to Utilities Plus
Energy Services not to exceed $27,300 to write transformer specifications to
replace the transformer at plant 1; and to authorize a call for bids with the bid to
be awarded at the November meeting. There is a four to six month lead time for
this transformer. After discussion, a motion was made by Commissioner Lenz,
seconded by Secretary Wetterling to authorize GM Kumm to enter into a contract
with Utilities Plus Energy Services not to exceed $27,300 and to call for bids for a
power transformer. Motion was unanimously carried.
There being no further business, a motion was made by Commissioner Lenz, seconded
by Secretary Wetterling to adjourn the meeting at 5:02 p.m. Motion was unanimously
carried.
ATTEST:
Dwight Bordson, President
David Wetterling, Secretary
Regular Meeting
September 30, 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.
The minutes of the August 31, 2009 regular meeting were reviewed. A motion was
made by Vice President Hantge, seconded by Commissioner Walser to approve the
minutes as written. Motion was unanimously carried.
Ray Wahle and Jeff Peters of Missouri River Energy Services were welcomed to the
meeting. They gave an update on the Big Stone II Project. All permits and certificate of
need have been completed. With the recent pulling out of Otter Tail Power, along with
the pulling out of two other utilities, we do face challenges with this project. MRES is
continuing to talk with other investors and will work toward keeping this project on track.
MRES will file before December 1St when it will be determined who the added investors
will be. After further discussion the board thanked MRES for the valuable work they're
doing and continuing to do so that Big Stone II Project will come to fruition.
At this time Vice President Robert Hantge left the meeting — 4:03 p.m.
The August 2009 payables were discussed. After discussion, a motion was made by
Secretary Wetterling, seconded by Commissioner Lenz to ratify the payment of bills in
the amount of $2,797,854.77 (detailed listing in payables book). Motion was
unanimously carried.
GM Kumm presented the August 2009 financial statements /budget year -to -date. After
discussion, a motion was made by Commissioner Lenz, seconded by Secretary
Wetterling to approve the financial statements /budget year -to -date. Motion was
unanimously carried.
Discussion was held on comp time issue. This was brought to the board's attention in
December when the hours accumulated had reached a significant number of hours. At
that time arrangements were made with the affected employees and the number of
hours has been reduced and is now manageable.
John Webster discussed the AMI bid tabulation. The bid tabulation has been forwarded
to our consultants for further evaluation. The awarding of the bid will occur sometime in
December, after the Smart Metering Grant has been announced. (Bid tab attached.)
GM Kumm presented the 2009 -2010 safety management program contract. This is our
annual MMUA Safety Management Program. After discussion a motion was made by
Commissioner Walser, seconded by Secretary Wetterling to approve the 2009 -2010
safety management program contract. Motion was unanimously carried. (Contract
attached.)
John Webster presented the changes to the policies and requirements booklet, gas
side, sections: Natural Gas Service Requirements and Charges; Temporary Service;
and Sealing of Meters. After discussion it was decided to table the changes and add
additional language for gas line pressure testing outside the city limits.
Steve Lancaster presented requisition #003722 for two air compressors replacement
system for plant #2 from John Henry Foster. Our current air compressor is a 1994 unit,
it runs 24/7 365 days a year and it just went down. We have repaired it but it will
eventually fail. After discussion, a motion was made by Commissioner Lenz, seconded
by Secretary Wetterling to approve requisition #003722 for two air compressors
replacement system for plant #2 from John Henry Foster for $29,326.80. Motion was
unanimously carried. (Requisition attached.)
Division reports
Electric — Steve Lancaster
• Boiler and machinery inspection this past week — went well
• Working on the landscaping at Plant 1
• Conversions are complete
• Working on 2010 budget
Accounting — Jared Martig
• High School senior is shadowing about an hour a day
• Jason Sturges and Roberta Yates have moved into the new inventory
building
• All gas inventory is in and most of the electric is in
• Will give tours during the open house
Gas — John Webster
• Natural gas to Judson Woods is complete
• Sent letter of interest for gas service along highway 15 south
• Getting ready for the open house
Business — Jan Sifferath
• There will be about a 12.6% increase in the premiums for health insurance
— more information to follow — meeting scheduled with Rich Westlund
Legal update — none
Unfinished Business
GM Kumm has talked with Miles Sepelt and has some dates for the committee to
meet regarding the Industrial Park.
New Business
GM Kumm asked for authorization to approve a purchase order to Utilities Plus
Energy Services not to exceed $27,300 to write transformer specifications to
replace the transformer at plant 1; and to authorize a call for bids with the bid to
be awarded at the November meeting. There is a four to six month lead time for
this transformer. After discussion, a motion was made by Commissioner Lenz,
seconded by Secretary Wetterling to authorize GM Kumm to enter into a contract
with Utilities Plus Energy Services not to exceed $27,300 and to call for bids for a
power transformer. Motion was unanimously carried.
There being no further business, a motion was made by Commissioner Lenz, seconded
by Secretary Wetterling to adjourn the meeting at 5:02 p.m. Motion was unanimously
carried.
David Wetterling, Secretary
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ATTEST: . �, ,�
Dwight Ordsoff, President
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Minnesota Municipal Utilities Association
AMENDMENT TO SERVICES AGREEMENT
Safety Management Program
Contract Date: August 14, 2009 Contract Number: 146 -2010
The services agreement entered into between Minnesota Municipal Utilities Association
(MMUA) and Hutchinson Utilities (Hutchinson), dated August 27, 2008, contract number
146 -2009, is amended as follows:
PART II, Section 1.
1. DURATION: This Agreement shall remain in force from October 1, 2009 until
September 30, 2010 (the "expiration date ").
PART III, Section 1.
1. COMPENSATION: For the services covered by this Agreement, Hutchinson
shall pay MMUA an annual fee of nineteen thousand four hundred dollars and 00
cents ($ 19,400.00) for the 2001 -49 annual period. Such compensation shall be
due and payable according to the selected payment terms below.
Payment terms for the fee agreed to above shall be based on one of the following
options (select one):
❑ Annual Payment ($19,400.00)
❑ Quarterly Payments ($ 4,850.00 each)
For any term of less than twelve full calendar months, the fee shall be a portion of
the annual fee, pro -rated based on the number of calendar months or partial
calendar months in which the services were provided as a percentage of twelve
(12).
The parties hereby accept the terms of the Agreement as modified.
Hutchi son Util' ies
By
Title
Date cj� ( Z ° 9
Purchase Order #
Minnesota Municipal Utilities Association
By . <
Title Executive Director
Date August 14, 2009
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