12-29-2010 HUCMRegular Meeting
December 29, 2010
Members present: Vice President Robert Hantge, Secretary Craig Lenz; Commissioner
Donald H. Walser; Commissioner Paul Nordin; Attorney Marc Sebora; General Manager
Michael Kumm
Member absent: President Dwight Bordson
Vice President Hantge called the meeting to order at 3:00 p.m.
The minutes of the November 30, 2010 regular meeting were reviewed. A motion was
made by Commissioner Walser, seconded by Commissioner Nordin to approve the
minutes as written. Motion was unanimously carried.
The minutes of the December 15, 2010 special meeting were reviewed. A motion was
made by Secretary Lenz, seconded by Commissioner Nordin to approve the minutes as
written. Motion was unanimously carried.
The November 2010 payables were discussed. A motion was made by Secretary Lenz,
seconded by Commissioner Walser to ratify the payment of bills in the amount of
$3,003,409.37 (detailed listing in payables book). Motion was unanimously carried.
Special guest, Doug Carnival was welcomed to the meeting. Mr. Carnival discussed
options of compensation for GM Kumm because of current legislative law regarding the
Governor's salary cap. Vice President Hantge requested help working with contacting
the legislators.
GM Kumm presented the November 2010 financial statements /budget year -to -date.
After discussion, a motion was made by Commissioner Walser, seconded by Secretary
Lenz to approve the November 2010 financial statements /budget year -to -date. Motion
was unanimously carried.
GM Kumm presented the Minnesota Mining & Mfg. 2011 natural gas transportation
agreement. This is our annual contract; we transport natural gas for 3M; nothing has
changed in the agreement. A motion was made by Secretary Lenz, seconded by
Commissioner Nordin to approve the Minnesota Mining & Mfg. 2011 natural gas
transportation agreement. Motion was unanimously carried. (Agreement attached.)
John Webster presented the HUC / BP natural gas services addendum. After discussion
a motion was made by Commissioner Walser, seconded by Secretary Lenz to approve
HUC / BP natural gas services addendum. Motion was unanimously carried.
(Addendum attached.)
John Webster presented two natural gas purchases. One is natural gas for power plant
for generation in January and February 2011 and one is natural gas for the system for
November 2011 through October 2013. After discussion a motion was made by
Secretary Lenz, seconded by Commissioner Walser to retroactively approve natural gas
purchases. Motion was unanimously carried. (Purchases attached.)
John Webster presented the long term supplier agreement with Border States — Gas.
We have this same agreement on the electric side and our experience with Border
States is excellent. They will house our inventory and send it when we need it. After
discussion a motion was made by Commissioner Nordin, seconded by Commissioner
Walser to approve the long term supplier agreement with Border States — Gas. Motion
was unanimously carried. (Agreement attached.)
Randy Blake presented the HDR proposal for engineering services. This proposal is for
the replacement of plant 1 engine generators. HUC has used HDR for other engineering
services and we have developed a dependable relationship with them. After discussion
a motion was made by Commissioner Walser, seconded by Secretary Lenz to approve
HDR proposal for engineering services. Motion was unanimously carried.
GM Kumm presented Resolution 7 — adopted January 31, 1983, to be amended. At the
time Resolution 7 was adopted there was a three member board, which has since
changed to a five member board. The amended Resolution resolved that checks,
warrants and other withdrawal orders issued against funds of the Commission on
deposit with any financial institution shall be signed by two Commissioners by means of
a stamp signature. In the event only one Commissioner is available, the Administrative
Coordinator can sign. A motion was made by Secretary Lenz, seconded by
Commissioner Nordin to approve amending Resolution 7 — adopted January 31, 1983.
Motion was unanimously carried. (Resolution attached.)
GM Kumm presented changes to policy on payments of HUC payables. This is
reviewed yearly at the request of our auditors. Our financial manager, Jared Martig,
asked for authorization to amend the year to 2011 that claims shall be paid. A motion
was made by Commissioner Walser, seconded by Commissioner Nordin to approve
changes to policy on payments of HUC payables. Motion was unanimously carried.
(Policy attached.)
GM Kumm presented changes to policies and requirements booklet: sections: inserts
with utility bills; inaccessible utility equipment /meters; identity theft — red flag program.
Inserts with utility bills and inaccessible utility equipment /meters are for review only; no
changes were recommended. The changes to identity theft — red flag program reflect
title change only. A motion was made by Secretary Lenz, seconded by Commissioner
Nordin to approve changes to policies and requirements booklet; section identity theft —
red flag program. Motion was unanimously carried. (Policy attached.)
GM Kumm presented for review exempt and non - exempt handbooks, sections:
offensive behavior /sexual harassment; retirement; resignation. No changes were
recommended.
GM Kumm presented requisition #004269 for 27,500' conductor from Border States.
This is purchased through our long -term agreement with Border States. Discussion was
held regarding meeting with Jared Martig, Roberta Yates and Attorney Sebora to
discuss the process of long -term agreements. After discussion, a motion was made by
Commissioner Walser, seconded by Secretary Lenz to approve requisition #004269 for
27,500' conductor from Border States for $50,404.92. Motion was unanimously carried.
(Requisition attached.)
GM Kumm presented requisition #004270 for 22,500' conductor, 500 MCM from Border
States. This is purchased through our long -term agreement with Border States. A
motion was made by Secretary Lenz, seconded by Commissioner Nordin to approve
requisition #004270 for 22,500' conductor, 500 MCM from Border States for $89,815.08.
Motion was unanimously carried. (Requisition attached.)
GM Kumm mentioned that the suggested date of January 26, 2011, for the joint meeting
with the City was cancelled.
Division Reports
Electric — Randy Blake
• New transformer downtown is in place; calibration needed on a relay then
transformer will be put into service.
Gas — John Webster
• Update on the AMI system
Business — Jan Sifferath
• New account coordinator, Kristin Allen, starts December 30, 2010.
• A breakdown of the 2011 CIP program was given to the Commissioners. It is
similar to the 2010 CIP program.
• Update on the PILOT for billing statements
Finance — Jared Martig
• Financials and payroll are going `live' first week in January.
• Update on IT, legal and HR fees for services.
Legal Update
Discussed possible dates City Council proposed for the joint meeting: February 22,
February 23 or March 8, 2011.
Unfinished Business
None
New Business
Electronic packets:
A motion was made by Secretary Lenz, seconded by Commissioner Nordin to send the
monthly commissioners packets electronically.
There being no further business, a motion was made by Secretary Lenz, seconded by
Commissioner Nordin to adjourn the meeting at 4:57 p.m. Motion was unanimously
carried.
ATTEST:
Robert Hantge, Vice President
Craig Lenz, Secretary
Regular Meeting
December 29, 2010
Members present: Vice President Robert Hantge, Secretary Craig Lenz; Commissioner
Donald H. Walser; Commissioner Paul Nordin; Attorney Marc Sebora; General Manager
Michael Kumm
Member absent: President Dwight Bordson
Vice President Hantge called the meeting to order at 3:00 p.m.
The minutes of the November 30, 2010 regular meeting were reviewed. A motion was
made by Commissioner Walser, seconded by Commissioner Nordin to approve the
minutes as written. Motion was unanimously carried.
The minutes of the December 15, 2010 special meeting were reviewed. A motion was
made by Secretary Lenz, seconded by Commissioner Nordin to approve the minutes as
written. Motion was unanimously carried.
The November 2010 payables were discussed. A motion was made by Secretary Lenz,
seconded by Commissioner Walser to ratify the payment of bills in the amount of
$3,003,409.37 (detailed listing in payables book). Motion was unanimously carried.
Special guest, Doug Carnival was welcomed to the meeting. Mr. Carnival discussed
options of compensation for GM Kumm because of current legislative law regarding the
Governor's salary cap. Vice President Hantge requested help working with contacting
the legislators.
GM Kumm presented the November 2010 financial statements /budget year -to -date.
After discussion, a motion was made by Commissioner Walser, seconded by Secretary
Lenz to approve the November 2010 financial statements /budget year -to -date. Motion
was unanimously carried.
GM Kumm presented the Minnesota Mining & Mfg. 2011 natural gas transportation
agreement. This is our annual contract; we transport natural gas for 3M; nothing has
changed in the agreement. A motion was made by Secretary Lenz, seconded by
Commissioner Nordin to approve the Minnesota Mining & Mfg. 2011 natural gas
transportation agreement. Motion was unanimously carried. (Agreement attached.)
John Webster presented the HUC / BP natural gas services addendum. After discussion
a motion was made by Commissioner Walser, seconded by Secretary Lenz to approve
HUC / BP natural gas services addendum. Motion was unanimously carried.
(Addendum attached.)
John Webster presented two natural gas purchases. One is natural gas for power plant
for generation in January and February 2011 and one is natural gas for the system for
November 2011 through October 2013. After discussion a motion was made by
Secretary Lenz, seconded by Commissioner Walser to retroactively approve natural gas
purchases. Motion was unanimously carried. (Purchases attached.)
John Webster presented the long term supplier agreement with Border States — Gas.
We have this same agreement on the electric side and our experience with Border
States is excellent. They will house our inventory and send it when we need it. After
discussion a motion was made by Commissioner Nordin, seconded by Commissioner
Walser to approve the long term supplier agreement with Border States — Gas. Motion
was unanimously carried. (Agreement attached.)
Randy Blake presented the HDR proposal for engineering services. This proposal is for
the replacement of plant 1 engine generators. HUC has used HDR for other engineering
services and we have developed a dependable relationship with them. After discussion
a motion was made by Commissioner Walser, seconded by Secretary Lenz to approve
HDR proposal for engineering services. Motion was unanimously carried.
GM Kumm presented Resolution 7 — adopted January 31, 1983, to be amended. At the
time Resolution 7 was adopted there was a three member board, which has since
changed to a five member board. The amended Resolution resolved that checks,
warrants and other withdrawal orders issued against funds of the Commission on
deposit with any financial institution shall be signed by two Commissioners by means of
a stamp signature. In the event only one Commissioner is available, the Administrative
Coordinator can sign. A motion was made by Secretary Lenz, seconded by
Commissioner Nordin to approve amending Resolution 7 — adopted January 31, 1983.
Motion was unanimously carried. (Resolution attached.)
GM Kumm presented changes to policy on payments of HUC payables. This is
reviewed yearly at the request of our auditors. Our financial manager, Jared Martig,
asked for authorization to amend the year to 2011 that claims shall be paid. A motion
was made by Commissioner Walser, seconded by Commissioner Nordin to approve
changes to policy on payments of HUC payables. Motion was unanimously carried.
(Policy attached.)
GM Kumm presented changes to policies and requirements booklet: sections: inserts
with utility bills; inaccessible utility equipment/meters; identity theft — red flag program.
Inserts with utility bills and inaccessible utility equipment/meters are for review only; no
changes were recommended. The changes to identity theft — red flag program reflect
title change only. A motion was made by Secretary Lenz, seconded by Commissioner
Nordin to approve changes to policies and requirements booklet; section identity theft —
red flag program. Motion was unanimously carried. (Policy attached.)
GM Kumm presented for review exempt and non - exempt handbooks, sections:
offensive behavior /sexual harassment; retirement; resignation. No changes were
recommended.
GM Kumm presented requisition #004269 for 27,500' conductor from Border States.
This is purchased through our long -term agreement with Border States. Discussion was
held regarding meeting with Jared Martig, Roberta Yates and Attorney Sebora to
discuss the process of long -term agreements. After discussion, a motion was made by
Commissioner Walser, seconded by Secretary Lenz to approve requisition #004269 for
27,500' conductor from Border States for $50,404.92. Motion was unanimously carried.
(Requisition attached.)
GM Kumm presented requisition #004270 for 22,500' conductor, 500 MCM from Border
States. This is purchased through our long -term agreement with Border States. A
motion was made by Secretary Lenz, seconded by Commissioner Nordin to approve
requisition #004270 for 22,500' conductor, 500 MCM from Border States for $89,815.08.
Motion was unanimously carried. (Requisition attached.)
GM Kumm mentioned that the suggested date of January 26, 2011, for the joint meeting
with the City was cancelled.
Division Reports
Electric — Randy Blake
• New transformer downtown is in place; calibration needed on a relay then
transformer will be put into service.
Gas — John Webster
• Update on the AMI system
Business — Jan Sifferath
New account coordinator, Kristin Allen, starts December 30, 2010.
A breakdown of the 2011 CIP program was given to the Commissioners. It is
similar to the 2010 CIP program.
Update on the PILOT for billing statements
Finance — Jared Martig
• Financials and payroll are going `live' first week in January.
• Update on IT, legal and HR fees for services.
Legal Update
Discussed possible dates City Council proposed for the joint meeting: February 22,
February 23 or March 8, 2011.
Unfinished Business
None
New Business
Electronic packets:
A motion was made by Secretary Lenz, seconded by Commissioner Nordin to send the
monthly commissioners packets electronically.
There being no further business, a motion was made by Secretary Lenz, seconded by
Commissioner Nordin to adjourn the meeting at 4:57 p.m. Motion was unanimously
carried.
Pa4d-l"&-
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ATTEST: LA)
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AGREEMENT
rn�Es
Hutchinson THIS AGREEMENT IS MADE BY AND BETWEEN HUTCHINSON
Utilities
Commission UTILITIES COMMISSION, HEREINAFTER "HUC" AND MINNESOTA
MINING AND MANUFACTURING CO., HEREINAFTER "3M ", ON THE
225 Michigan Street FOLLOWING TERMS AND CONDITIONS.
Hutchinson
Minnesota WHEREAS, 3M DESIRES TO PURCHASE, AND HUC SHALL
55350
PROVIDE, FIRM GAS FOR USE AT 3M'S HUTCHINSON NORTH AND
SOUTH PLANTS; AND,
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.
Tel 320-587-4746 PAGE 1 of 4
Fax 320- 587 -4721
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
Dwight Bordson
President
AGREEMENT:
Robert Hantge
Vice President
HUC SHALL PROVIDE, AND 3M SHALL ACCEPT, FIRM GAS
Craig Lenz
Secretary
Sec retary
COMMENCING JANUARY 1, 201 1. AT 9:00 A.M. AND TERMINATING
Donald H. Walser
ON JANUARY 1, 2012, AT 9:00 A.M.
Commissioner
Paul Nordin
Commissioner
Michael Kumm
General Manager
Tel 320-587-4746 PAGE 1 of 4
Fax 320- 587 -4721
1 . 3M SHALL PAY HUC BY THE FOLLOWING SCHEDULE DURING THE
TERM OF THIS AGREEMENT: (ALL RATES EXPRESSED AS $ /DTH.)
FLOW THROUGH ALL NATURAL GAS METERS
COMMODITY INDEX
TRANSPORTATION $0.91
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 THE 15TH 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
PAGE 2 Of 4
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.
PAGE 3 of 4
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.
HUTCHINSON UTILITIES
C ISSION
BY:
NAME:
TITLE: Robert Hantge
DATE: 12/29/10
MINNESOTA MINING &
MANUFACTURING
r - ,za ' .►
v ..-
DATE: fa1�j JI D
PAGE 4 of 4
r
NATURAL GAS SERVICES ADDENDUM
This
Nat uml Gas Services Addendum (-Services Addendum-) dated 2010
suWkments, amends and is subjw to a Saw Co MW for Sale and Pwrlwe of Natural Gas between
BP Ca"ada EnOW M4tkcdng COXP ("Or) and Hutchinson Utilities Commission, City of Hutchinson,
MiOW,100 dated Ja=atY 1, 20K Pursuant to which BP delivers and sells Gas to
Hutchinson ("Base Contrwr").
Hutchinson a Transac6on Confimmfion iu accordance with the confinnation procedure of the Base
Contract
N
9, During the. term of this Service Addendum, for ewb NW. Btu of Gas purchased by Hutchinson
Cream a third party supplier and delivered to Hutchinson in a month, Hutchinson shall pay BP a
third party supply handling fee of $0.01/MMBtu ("Supply RanAng Feel).
ftLftjjiO and Forteitur—es,
10. BP and Hutchinson Shall work together to minimize any penalties or forfeitures that may arise in
respe,ct of Hutchinson for which BP provides Management Services. Each party
W71700.1 it T * f
El
iL1S116SQX 11 /Ga /LV1V ,s:V /::i4 VM PAGE 1 /001 Fax Server
U
��
BP Canada Energy Marketing Corp. 11 /29/2010
011
Buyer: Seller: Trade Date: 11/29/2010
Attn: Confirmation Dept Rep:Mark Tillwick Transaction Confirmation #:6977030
Hutchinson Utilities Commission BP Canada Energy Marketing Corp. BP Internal Contract ID #:5502218
Fax #: (320) 587 -4721 240 -4th Avenue SW BP (Nucleus) ID:5577957
Calgary, AB T2P 2H8
Fax #: (713) 323 -1633
Physical Gas Transaction Confirmation For Immediate Delivery
Trade date: 11/29/2010
Invoice Currency: US$
Broker:
Start date: 01/01/2011
Invoice UoM: MMBTU
End date: 02/28/2011
Deal type: Firm Fixed Quantity
Delivery Point Pipeline
Start End
Qty Totals by Price Tier
Price: US$/
Delivery Point Tier Quantity
MMBTU
MM BTU /Day MM BTU /Day
rimont Northern Border 01/01/2011 02/28/2011
250 1 250
4.70
Pipeline
Company
2 0
Others- (Ventura)
G D + 0.0075
Special Pricing Provisions:
Take or Pay
Others- (Ventura)
USD 01/01/2011
02/28/2011
G D -0.01
This Transaction Confirmation confirms the terms of the transaction between the parties and is subject to the terms and
conditions of the Base Contract dated 01/01/2004. In the event that the parties have not yet executed a Base Contract, this
transaction shall be subject to the NAESB Standard 6.3.1, September 5, 2006 Base Contract for Sale and Purchase of
Natural Gas and General Terms and Conditions related thereto, with all default elections being deemed selected by the
parties. Upon the execution of any Base Contract between the parties, this transaction shall be merged into and governed
by such executed Base Contract. Please confirm the foregoing correctly sets forth the terms of our agreement with respect
to this Transaction by signing in the space provided below and returning a copy of the executed confirmation within five (5)
business days of receipt. Failure to respond by providing a signed copy of this Transaction Confirmation or an objection to
any specific terms to which the counierparty does not agree will be deemed acceptance of the terms hereof.
If you have any questions, please contact the Confirmation Department by:
Phone - (713) 323 -1866
Fax - (713) 323 -1633 or (713) 323 -4934
email - NAG Pconfirmations @bp.com
BP Canada Energy Marketing Corp.
By: Mark Tillwick
Date: 11/29/2010
Hutchinson Utilities Commission
BP (NUCLEUS) ID:5577957 Page 1 of 1
nigntrax 11/29 /2010 3:10:41 PM PAGE 1/005 Fax Server
\BP Canada Energy Marketing Corp.
11/29/2010
Buyer: Seller: Trade Date: 11/29/2010
Attn: Confirmation Dept Rep:Mark Tillwick Transaction Confirmation #:6978100
Hutchinson Utilities Commission BP Canada Energy Marketing Corp. BP Internal Contract ID #:5502218
Fax #: (320) 587 -4721 240 -4th Avenue SW BP (Nucleus) ID:5578779
Calgary, AB T2P 21-18
Fax #: (713) 323 -1633
Physical Gas Transaction Confirmation For Immediate Delivery
date: 11/29/2010 Start date: 11/01/2011 End date: 10/31/2013
e Currency: US$ Invoice UoM: MMBTU Deal type: Firm Fixed Quantity
Start: 11/01/2011 End:11/30/2011 Delivery Point: Trimont Pipe:Northern Border Floor$
Pipeline Company
7,700 MMBTU /Month Tier 1 7,700 MMBTU /Month 5.05 US$ /MMBTU F1
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
F1 : (NNG Ventura, IA IF) -1.45
Start: 12/01/2011 End:12/31/2011 Delivery Point: Trimont Pipe:Northern Border Floor$
Pipeline Company
10,656 MMBTU/Month Tier 1 10,656 MMBTU /Month 5.05 US$ /MMBTU F1
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
F1 : (NNG Ventura, IA IF) -1.45
Start:01/01/2012 End:01/31/2012 Delivery Point: Trimont Pipe:Northern Border Floor$
Pipeline Company
12,056 MMBTU /Month Tier 1 12,056 MMBTU /Month 5.05 US$ /MMBTU F1
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
F1 : (NNG Ventura, IA IF 1-1.45
Start:02 /01 /2012 End:02/29/2012 Delivery Point: Trimont Pipe:Northern Border Floor$
Pipeline Company
11,200 MMBTU /Month Tier 1 11,200 MMBTU /Month 5.05 US$ /MMBTU F1
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
F1 : (NNG Ventura, IA IF) -1.45
03/01/2012 End:03/31/2012 Delivery Point: Trimont Pipe:Northern Border Floor$ I
csr tiNUkLtUZJ) iU:55 /?3119 Page 1 of 5
Rightfax 11/29/2010 3:10:41 PM PAGE 2/005 Fax Server
Pipeline Company
10,111 MMBTU /Month Tier 1 10,111 MMBTU /Month 5.05 US$ /MMBTU
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
F1 : {NNG Ventura, lA IF 1 -1.45
Start:04 /01/2012 End:04/30/2012 Delivery Point: Trimont Pipe:Northern Border
Pipeline Company
5,833 MMBTU /Month Tier 1 5,833 MMBTU /Month 5.05 US$ /MMBTU
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
{NNG Ventura, IA IF 1 -1.45
t:05/01/2012 End:05/31/2012 Delivery Point: Trimont Pipe:Northern Border
Pipeline Company
2 MMBTU /Month Tier 1 3,422 MMBTU /Month 5.05 US$ /MMBTU
Tier 2 0 MMBTU /Month Others- US$/MMBTU
(Ventura) GD +
0.0075
: {NNG Ventura, IA IF) -1.45
irt:06/01/2012 End:06/30/2012 Delivery Point: Trimont Pipe:Northern Border
Pipeline Company
11 MMBTU /Month Tier 1 2,411 MMBTU /Month 5.05 US$ /MMBTU
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
F1 : {NNG Ventura, IA IF) -1.45
Start:07/01/2012 End:08/31/2012 Delivery Point: Trimont Pipe:Northern Border
Pipeline Company
2,178 MMBTU /Month Tier 1 2,178 MMBTU /Month 5.05 US$ /MMBTU
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
F1 : {NNG Ventura, IA IF 1 -1.45
Start:09 /01/2012 End:09/30/2012 Delivery Point: Trimont Pipe:Northern Border
Pipeline Company
2,333 MMBTU /Month Tier 1 2,333 MMBTU /Month 5.05 US$ /MMBTU
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
tsr fivuc.utUZ:,) iu:55irsiia age 2 of 5
F1
Floor$
F1
Floor$
F1
Floor$
F1
Floor$
F1
Floor$
F1
ttightfax 11/29/2010 3:10:41 PM PAGE 3/005 Fax Server
(NNG Ventura, IA IF 1 -1.45
10/01/2012 End:10/31/2012 Delivery Point: Trimont Pipe:Northern Border Floor$
Pipeline Company
MMBTU /Month Tier 1 4,822 MMBTU /Month 5.05 US$ /MMBTU F1
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
JR : (NNG Ventura, IA IF) -1.45
Start: 11/01/2012 End:11/30/2012 Delivery Point: Trimont Pipe:Northern Border Floor$
Pipeline Company
7,700 MMBTU /Month Tier 1 7,700 MMBTU /Month 5.05 US$ /MMBTU F1
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
F1 : (NNG Ventura, IA IF) -1.45
Start: 12/01/2012 End:12/31/2012 Delivery Point: Trimont Pipe:Northern Border Floor$
Pipeline Company
10,656 MMBTU /Month Tier 1 10,656 MMBTU /Month 5.05 US$ /MMBTU F1
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
F1 : (NNG Ventura, IA IF) -1.45
Start:01 /01/2013 End:01/31/2013 Delivery Point: Trimont Pipe:Northern Border Floor$
Pipeline Company
12,056 MMBTU /Month Tier 1 12,056 MMBTU /Month 5.05 US$ /MMBTU F1
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
F1 : (NNG Ventura, IA IF 1 -1.45
Start:02 /01/2013 End:02/28/2013 Delivery Point: Trimont Pipe:Northern Border Floor$
Pipeline Company
11,200 MMBTU /Month Tier 1 11,200 MMBTU /Month 5.05 US$ /MMBTU F1
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
F1 : (NNG Ventura, IA IF) -1.45
Start: 03/01/2013 End:03/31/2013 Delivery Point: Trimont Pipe:Northern Border Floor$
Pipeline Company
10,111 MMBTU /Month Tier 1 10,111 MMBTU /Month 5.05 US$ /MMBTU F1
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
bF (NUCLEUS) IU:5578779 Page 3 of 5
njs11j - =ax 11 /ZWZU1U 3:10:41 PM PAGE 4/005 Fax Server
(Ventura) GD +
0.0075
1 : (NNG Ventura, IA IF 1-1.45
tart:04/01/2013 End:04/30/2013 Delivery Point: Trimont Pipe:Northern Border Floor$
Pipeline Company
833 MMBTU /Month Tier 1 5,833 MMBTU /Month 5.05 US$ /MMBTU F1
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
{NNG Ventura, IA IF) -1.45
t:05/01/2013 End:05/31/2013 Delivery Point: Trimont Pipe:Northern Border Floor$
Pipeline Company
2 MMBTU /Month Tier 1 3,422 MMBTU /Month 5.05 US$ /MMBTU F1
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
: {NNG Ventura, IA IF) -1.45
irt:06/01/2013 End:06/30/2013 Delivery Point: Trimont Pipe:Northern Border Floor$
Pipeline Company
11 MMBTU /Month Tier 1 2,411 MMBTU /Month 5.05 US$ /MMBTU F1
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
F1 : (NNG Ventura, IA IF 1-1.45
Start:07 /01/2013 End:08/31/2013 Delivery Point: Trimont Pipe:Northern Border Floor$
Pipeline Company
2,178 MMBTU /Munch Tier 1 2,178 MMBTU /Month 5.05 US$ /MMBTU F1
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
F1 : {NNG Ventura, IA IF 1-1.45
Start:09 /01 /2013 End:09/30/2013 Delivery Point: Trimont Pipe:Northern Border Floor$
Pipeline Company
2,333 MMBTU /Month Tier 1 2,333 MMBTU /Month 5.05 US$ /MMBTU F1
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
F1 : {NNG Ventura, IA IF 1-1.45
Start: 10/01/2013 End:10/31/2013 Delivery Point: Trimont Pipe:Northern Border Floor$
Pipeline Company
ui 1-Uo) iv.ao/oi iy gage 4 of 5
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MMBTU /Month Tier 1 4,822 MMBTU /Month 5.05 US$ /MMBTU F1
Tier 2 0 MMBTU /Month Others- US$ /MMBTU
(Ventura) GD +
0.0075
{NNG Ventura, IA IF 1-1.45
Special Pricing Provisions:
Take or Pay Others- (Ventura) USD 11/01/2011 10/31/2013
This Transaction Confirmation confirms the terms of the transaction between the parties and is subject to the terms and
conditions of the Base Contract dated 01/01/2004. In the event that the parties have not yet executed a Base Contract, this
transaction shall be subject to the NAESB Standard 6.3.1, September 5, 2006 Base Contract for Sale and Purchase of
Natural Gas and General Terms and Conditions related thereto, with all default elections being deemed selected by the
parties. Upon the execution of any Base Contract between the parties, this transaction shall be merged into and governed
by such executed Base Contract. Please confirm the foregoing correctly sets forth the terms of our agreement with respect
to this Transaction by signing in the space provided below and returning a copy of the executed confirmation within five (5)
business days of receipt. Failure to provide a signed copy of this Transaction Confirmation or an objection to any specific
terms to which the counterparty does not agree within five (5) business days of receipt of this Transaction Confirmation will
be deemed acceptance of the terms hereof.
If you have any questions, please contact the Confirmation Department by:
Phone - (713) 323 -1866
Fax - (713) 323 -1633 or (713) 323 -4934
email - NAGPconfirmations @bp.com
BP Canada Energy Marketing Corp. Hutchinson Utilities Commission
By: Mark Tiliwick Q W _
Date: 11/29/2010 ate: A hin /JO
BP (NUCLEUS) ID:5578779 Page 5 of 5
Long Term Supplier Agreement
Parties:
This Agreement is made between Border States Electric and Hutchinson Utilities
Commission (HUC), and shall be effective as of the date of execution by both
parties.
Purpose:
This Agreement is to confirm that Border States Electric will provide specified
Natural Gas related products or materials referenced in the Parts Listing to HUC
at the quoted price. In turn, HUC agrees to purchase these products from Border
States Electric for a period of one year unless, in the opinion of HUC, supplier
cannot meet reasonable delivery dock dates.
Term:
The term of this Agreement will be for a period of one year, commencing on
January 1, 2011. The term of this Agreement will be extended automatically, in
increments of one year, unless either party gives written notice of termination no
less than thirty (30) days prior to expiration for the then - current term.
Termination:
Either party may terminate Agreement at any time, without cause, with thirty (30)
days written notification.
Amendments:
The Part List may be amended or added to at any time by written agreement
between HUC and Supplier. Items may be removed from the Part List at anytime
by HUC with written notification.
Price changes based on raw material price will be reviewed periodically and the
parties will determine whether a price increase or decrease is appropriate.
Explanations for price increases will be documented and given to HUC.
Inventory:
Supplier will maintain adequate inventory to supply parts and product to HUC.
HUC will not be required to purchase a specified amount of inventory from the
supplier during this Agreement. In cases of Agreement termination,
obsolescence, or discontinued usage of a part, HUC will not be responsible for
supplier inventories unless part was built to HUC prints.
Supplier shall report current stock status of items on Part List to HUC as
requested.
Upon request, HUC will provide supplier approximate usage of parts, thereby
enabling the supplier to be in a reasonable position to meet purchase order
quantities.
Delivery:
Supplier shall normally ship parts from stock within two or three working days
after ordered or released unless otherwise requested and agreed.
Supplier agrees to achieve and maintain a 98% on time delivery percentage by
end of second quarter of Agreement. If a delivery is not expected to be made on-
time, supplier will notify HUC and will take all reasonable steps at its own cost to
expedite delivery. If a delivery is not made on -time or if notice is given that a
delivery is expected to be late, HUC may cancel the order immediately by
delivering notice of the cancellation to supplier. If a delivery is not on time and is
canceled by HUC, HUC will be free to purchase the late products from a third
party.
Cost Reduction:
Parties will meet for quarterly reviews throughout the year. Discussions will
include identifying cost reduction ideas and goals.
Date
Signature
Printed Name
Title
Company
Long Term Supplier Agreement 12/10 ry
Date f2 z -t A o
Signature l /
Printed Namel�lHt`F
Title V t cr ro e
Company WV C-
Adopted January 31, 1983
Amended December 29, 2010
RESOLUTION 7 - RENUMBERED FOR SEARCH PURPOSES ONLY AS 133
RESOLUTION OF HUTCHINSON UTILITIES COMMISSION
CITY OF HUTCHINSON
RESOLVED, that checks, warrants and other withdrawal orders
issued against funds of the Commission on deposit with any
financial institution shall be signed by two Commissioners
through the use of their stamp signature. An e -mail listing of
checks shall be sent to all Commissioners. The stamp signatures
of the first two Commissioners to respond with their approval
will be used. effieers, ene of the signatures shall be- by a
persen fielding ene ef= the felleid3ng effiees. (a) President, er
(Vi ee —President; and the ether signature shall be by a persen
heldi ng ene—ef the — €e1- lewing effiees . (a) Seeretary, —ems)
Reeerding Se ret,r•, Tssistant - Seeretary7
RESOLVED FURTHER, that in the event the Preside and `Viee
President are beth temperarily unavailable, then the Seeretary
and Assistant Seeretary, jeintly, are only one Commissioner is
available, the Administrative Coordinator is hereby authorized
and appointed to sign.
Amended January 4, 2010
Amended December 29. 2010
Policy on Payments of Hutchinson Utilities Commission Payables
The Hutchinson Utilities Commission Accountant and Financial Manager are
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 2010 2011.
This policy shall be reviewed on an annual basis.
IDENTITY THEFT — "RED FLAG PROGRAM"
It shall be the policy of Hutchinson Utilities Commission to establish an identity theft
program, also know, as "Red Flag Program ".
Hutchinson Utilities Commission has an identity theft program in place called the "RED
FLAG PROGRAM ", pursuant to the Federal Trade Commission's Red Flag Rule, which
implements Section 114 of the Fair and Accurate Credit Transactions Act of 2003.
Internal procedures have been established whereby employees of HUC have been
trained on how to recognize and what procedures to follow if the employee suspects an
identity theft is taking place.
Implementation of the Red Flag Program is the responsibility of the Account Supervisor.
Administration and maintenance of the Red Flag Program is the responsibility of the
BUSiRess Customer /HR Manager.
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