01-04-2010 HUCMRegular Meeting
January 4, 2010
(December's Regular Meeting)
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 November 25, 2009 regular meeting were reviewed. A motion was
made by Secretary Wetterling, seconded by Vice President Hantge to approve the
minutes as written. Motion was unanimously carried.
The minutes of the December 16, 2009 special meeting were reviewed. A motion was
made by Commissioner Walser, seconded by Secretary Wetterling to approve the
minutes as written. Motion was unanimously carried.
The November 2009 payables were discussed. A motion was made by Commissioner
Lenz, seconded by Commissioner Walser to ratify the payment of bills in the amount of
$2,857,886.96 (detailed listing in payables book). Motion was unanimously carried.
GM Kumm presented the November 2009 financial statements /budget year -to -date.
After discussion, a motion was made by Secretary Wetterling, seconded by
Commissioner Lenz to approve the financial statements /budget year -to -date. Motion
was unanimously carried.
Jan Sifferath presented the charge -offs. After discussion, a motion was made by Vice
President Hantge, seconded by Secretary Wetterling, to approve the charge -offs
(detailed listing on page 2751 of the December 2009 general journal.) Motion was
unanimously carried.
GM Kumm discussed the sick leave policy in the exempt employee handbook. In
reviewing the current sick leave policy for exempt employees it is our intent to make it
easier to read, not to make any changes. In reviewing the sick leave policy for non-
exempt employees, and the ease in understanding it, we only want to change the format
in the exempt employee handbook so it offers the same clarity. After discussion, it was
decided to bring this back to the board for approval after the changes in format have
been developed.
GM Kumm presented the changes to the policy on payments of Hutchinson Utilities
Commission payables. This is a part of our annual review of policies; this policy was
implemented in 2009 per our auditor's request. After discussion, a motion was made by
Commissioner Lenz, seconded by Vice President Hantge to approve the changes to the
policy on payments of Hutchinson Utilities Commission payables. Motion was
unanimously carried. (Policy attached.)
John Webster presented the 3M contract. This contract is for the transportation of
natural gas for 3M. There is an increase in price from $0.88 /Dth to $0.91 /Dth. A motion
was made by Vice President Hantge, seconded by Commissioner Walser to approve
the 3M contract, subject to making a correction to the HUC letterhead. Motion was
unanimously carried. (Contract attached.)
GM Kumm discussed the proposed agenda for the joint meeting with City Council. After
discussion, it was decided this proposed agenda will be forwarded to City Administrator
Gary Plotz for his review and to ask if he wants anything added to the agenda.
John Webster presented requisition #003853 for 2010 Chevrolet Silverado 44. This is
a cab and chassis replacing the crew chiefs truck. The utility body will be ordered at a
later date and will be installed onto this cab and chassis. After discussion, a motion was
made by Vice President Hantge, seconded by Secretary Wetterling to approve
requisition #003853 for 2010 Chevorlet Silverado 44 from Thane Hawkins Polar
Chevrolet for $36,106.09. Motion was unanimously carried. (Requisition attached.)
Division reports:
Gas — John Webster
• Working on the AMI project
• Working on end of year reports for DOT
Electric — Steve Lancaster
• Finishing up on the 2009 projects
• Starting on 2010 projects
Business — Jan Sifferath
• Extended conditional offer of employment for the account coordinator
positions and they have accepted them: Kim Koski and Stephanie Nelson
Finance — Jared Martig
• Taping is now being done on the construction side
• Carpeting and painting to follow
• Auditors will be here on Wednesday to start their audit
• An employee benefits summary will go out to each employee with their W-
2's
GM Kumm stated he will meet with Marc Sebora to go over the territory agreement.
Legal Update
None
Unfinished Business
None
New Business
Mr. Paul Nordin was recognized as being the newest member of the Hutchinson
Utilities Commission Board.
Out -going Commissioner David Wetterling thanked the board for the opportunity to
serve with them and he thanked the employees of Hutchinson Utilities Commission for
the excellent job everyone does.
There being no further business, a motion was made by Secretary Wetterling, seconded
by Commissioner Lenz to adjourn the meeting at 3:45 p.m. Motion was unanimously
carried.
ATTEST:
Dwight Bordson, President
Robert Hantge, Vice President
Regular Meeting
January 4, 2010
(December's Regular Meeting)
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 November 25, 2009 regular meeting were reviewed. A motion was
made by Secretary Wetterling, seconded by Vice President Hantge to approve the
minutes as written. Motion was unanimously carried.
The minutes of the December 16, 2009 special meeting were reviewed. A motion was
made by Commissioner Walser, seconded by Secretary Wetterling to approve the
minutes as written. Motion was unanimously carried.
The November 2009 payables were discussed. A motion was made by Commissioner
Lenz, seconded by Commissioner Walser to ratify the payment of bills in the amount of
$2,857,886.96 (detailed listing in payables book). Motion was unanimously carried.
GM Kumm presented the November 2009 financial statements /budget year -to -date.
After discussion, a motion was made by Secretary Wetterling, seconded by
Commissioner Lenz to approve the financial statements /budget year -to -date. Motion
was unanimously carried.
Jan Sifferath presented the charge -offs. After discussion, a motion was made by Vice
President Hantge, seconded by Secretary Wetterling, to approve the charge -offs
(detailed listing on page 2751 of the December 2009 general journal.) Motion was
unanimously carried.
GM Kumm discussed the sick leave policy in the exempt employee handbook. In
reviewing the current sick leave policy for exempt employees it is our intent to make it
easier to read, not to make any changes. In reviewing the sick leave policy for non-
exempt employees, and the ease in understanding it, we only want to change the format
in the exempt employee handbook so it offers the same clarity. After discussion, it was
decided to bring this back to the board for approval after the changes in format have
been developed.
GM Kumm presented the changes to the policy on payments of Hutchinson Utilities
Commission payables. This is a part of our annual review of policies; this policy was
implemented in 2009 per our auditor's request. After discussion, a motion was made by
Commissioner Lenz, seconded by Vice President Hantge to approve the changes to the
policy on payments of Hutchinson Utilities Commission payables. Motion was
unanimously carried. (Policy attached.)
John Webster presented the 3M contract. This contract is for the transportation of
natural gas for 3M. There is an increase in price from $0.88 /Dth to $0.91 /Dth. A motion
was made by Vice President Hantge, seconded by Commissioner Walser to approve
the 3M contract, subject to making a correction to the HUC letterhead. Motion was
unanimously carried. (Contract attached.)
GM Kumm discussed the proposed agenda for the joint meeting with City Council. After
discussion, it was decided this proposed agenda will be forwarded to City Administrator
Gary Plotz for his review and to ask if he wants anything added to the agenda.
John Webster presented requisition #003853 for 2010 Chevrolet Silverado 4x4. This is
a cab and chassis replacing the crew chiefs truck. The utility body will be ordered at a
later date and will be installed onto this cab and chassis. After discussion, a motion was
made by Vice President Hantge, seconded by Secretary Wetterling to approve
requisition #003853 for 2010 Chevorlet Silverado 4x4 from Thane Hawkins Polar
Chevrolet for $36,106.09. Motion was unanimously carried. (Requisition attached.)
Division reports:
Gas — John Webster
• Working on the AMI project
• Working on end of year reports for DOT
Electric — Steve Lancaster
• Finishing up on the 2009 projects
• Starting on 2010 projects
Business — Jan Sifferath
• Extended conditional offer of employment for the account coordinator
positions and they have accepted them: Kim Koski and Stephanie Nelson
Finance — Jared Martig
• Taping is now being done on the construction side
• Carpeting and painting to follow
• Auditors will be here on Wednesday to start their audit
• An employee benefits summary will go out to each employee with their W-
2's
GM Kumm stated he will meet with Marc Sebora to go over the territory agreement.
Legal Update
None
Unfinished Business
None
New Business
Mr. Paul Nordin was recognized as being the newest member of the Hutchinson
Utilities Commission Board.
Out -going Commissioner David Wetterling thanked the board for the opportunity to
serve with them and he thanked the employees of Hutchinson Utilities Commission for
the excellent job everyone does.
There being no further business, a motion was made by Secretary Wetterling, seconded
by Commissioner Lenz to adjourn the meeting at 3:45 p.m. Motion was unanimously
carried.
-4ToT4rt Frantge, Vice President
ATTEST: ��_ 4u6v"
Dwight B dson, President
Adopted March 25, 2009
Policy on Payments of Hutchinson Utilities Commission Payables
The Hutchinson Utilities Commission aAccountant and Financial Manager are is
hereby authorized to issue warrant(s) drawn from the proper funds.
(Resolution 153 was amended on March 25, 2009 and reads as follows):
Resolution 153 authorizes HUC Accountant to transfer funds by wire or other
electronic means.
Claims shall be paid upon proper presentation during the year 292010.
This policy shall be reviewed on an annual basis.
Hutchinson
Utilities
Commission
AGREEMENT
THIS AGREEMENT is made by and between Hutchinson Utilities
Commission, hereinafter "HUC" and Minnesota Mining and
Manufacturing Co., Hereinafter "3M ", on the following terms and
conditions.
WHEREAS, 3M desires to purchase, and HUC shall provide,
225 Michigan Street
Hutchinson Firm Gas for use at 3M's Hutchinson North and South Plants; and,
Minnesota
55350. WHEREAS, 3M does acknowledge that HUC will, in reliance
upon this Agreement, enter into an agreement to provide Firm Gas
and Transportation.
WHEREAS, the purchase price of the contract Quantities shall
be based on the Monthly Inside FERC Ventura Index, as published by
Platt's "Gas Daily ", plus /minus the NNG Ventura to NBPL Ventura
monthly premium.
NOW, THEREFORE, in consideration of the foregoing and for
other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties make the following Agreement:
HUC shall provide, and 3M shall accept, Firm Gas commencing
January 1, 2010, at 9:00 a.m. and terminating on January 1, 2011, at
9:00 a.m.
Dwight Bordson
President 1. 3M shall pay HUC by the following schedule during the term of
Robert Hantge
Vice President this Agreement: (All rates expressed as $ /Dth.)
David Wetterling
Secretary
Craig Lenz
Flow through All Natural Gas Meters
Commissioner
Commodity Index
Donald H. Walser
Commissioner
Michael Kumm
Transportation $0.91
General Manager
Tel 320 - 587 -4746
Fax 320 - 587 -4721
Monthly Peak
Day Demand $0.00 /MMBtu
2. Hutchinson agrees to provide daily swing supply to 3M at the applicable price,
as published for the day by Platt's "Gas Daily" in its "Daily Price Survey
($ /Dth)" for "Northern, Ventura" "Midpoint" ( "Daily Index ") plus /minus $0.01.
Swing supply is defined as supply increases or decreases, from contracted
levels, nominated at least 24 hours prior to the start of the gas day.
3. Hutchinson shall provide 3M with real -time balancing, based on the following:
Best Efforts Realtime Swing nominated less than 24 hours prior to the end of
the gas day on a best efforts basis, priced at the applicable price, as
published for the day by Platt's "Gas Daily" in its "Daily Price Survey ($ /Dth)"
for "Northern, Ventura" "Midpoint" ( "Daily Index "), plus /minus $0.15.
4. 3M shall provide to HUC, by the end of the15th day of the month prior to gas
flow, the base load level of natural gas required for the following month. In
the event HUC has not received the base load nomination from 3M by the
end of the 15th day of the month prior to the gas flow. HUC shall nominate the
current month's base load level for the following month
5. During the term of this Agreement, HUC shall not be liable for stoppage of
flow on the pipeline, Northern Border Pipeline Company equipment failure, or
any other force majeure which affects the flow of gas to the HUC Border
Stations, or any act of God which interrupts flow of gas on the pipeline.
6. Payment is due from 3M on or before the tenth day following the date the bill
is issued by HUC.
This Agreement sets forth all terms agreed upon between the parties, and no
prior oral or written agreements shall be binding, This Agreement shall not be
altered, amended or modified except as in writing and executed by both parties.
Dated: /L— L) �n
1�7 I
Utilities Commission
BY:
Minnesota Mining & Manufacturing
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