01-26-2011 HUCMRegular Meeting
January 26, 2011
The Commission Board expressed their appreciation to Lin Madson in recognition of her
retiring after 32 years of dedicated service to Hutchinson Utilities Commission.
Members present: President Dwight Bordson; Commissioner Donald H. Walser;
Commissioner Paul Nordin; Attorney Marc Sebora; General Manager Michael Kumm
Members absent: Vice President Robert Hantge and Secretary Craig Lenz
President Bordson called the meeting to order at 3:02 p.m.
GM Kumm announced due to the absence of two Commissioners, to waive Article III,
Section 9 — Election and Tenure of Hutchinson Utilities Commission By -Laws, for
January 2011. A motion was made by Commissioner Nordin, seconded by
Commissioner Walser to waive the By -Laws to delay the Commission Reorganization of
president, vice president, and secretary until the February 2011 regularly scheduled
meeting. Motion was unanimously carried.
A motion was made by Commissioner Walser, seconded by Commissioner Nordin to
appoint Marc Sebora as legal counsel. Motion was unanimously carried.
President Bordson appointed Kim Koski as recording secretary and designated Citizens
Bank & Trust, Wells Fargo and Home State Bank as depository for utility funds.
The minutes of the December 29, 2010 regular meeting were reviewed. A motion was
made by Commissioner Nordin, seconded by Commissioner Walser to approve the
minutes as written. Motion was unanimously carried.
The December 2010 payables were discussed. A motion was made by Commissioner
Walser, seconded by Commissioner Nordin to ratify the payment of bills in the amount
of $3,631,603.94 (detailed listing in payables book). Motion was unanimously carried.
GM Kumm presented the December 2010 financial statements /budget year -to -date. An
updated rate comparison for residential natural gas and residential electric was handed
out showing we have the lowest gas rates and the second lowest electric rates. After
discussion, a motion was made by Commissioner Nordin, seconded by Commissioner
Walser to approve the financial statements /budget year -to -date. Motion was
unanimously carried. (Comparisons attached.)
GM Kumm presented advertisement for bids for directional drilling contractor for 2011-
2012. We obtain bids every two years for the construction season. A motion was made
by Commissioner Walser, seconded by Commissioner Nordin to approve the
advertisement for bids for directional drilling contractor for 2011 -2012. Motion was
unanimously carried. (Advertisement for bids attached.)
GM Kumm presented the Service Beyond City Limits of Hutchinson policy. This is part
of our yearly policy review and no changes are requested at this time.
GM Kumm presented the CIP Rebate Level of Authority policy. This is also a part of our
yearly policy review and no changes are requested at this time.
GM Kumm presented the proposed joint meeting dates. After discussion, a motion was
made by Commissioner Walser, seconded by Commissioner Nordin to designate the
Joint HUC /City meeting as a public meeting to be held on Wednesday, February 23,
2011 at 4:00 at the City Center Council Chambers. Motion was unanimously carried.
GM Kumm presented policies and requirements booklet, sections: MN Government
Data Practices Act & Public Records Request; electric service requirements & charges;
and temporary service — electric. This is part of our policy review and no changes are
requested at this time.
GM Kumm presented exempt and non - exempt handbooks, sections: solicitation on
utility premises; employee gifts; and flowers. The Board requested changes to the
exempt and non - exempt handbooks, section solicitation on utility premises. The
recommended changes were to the last sentence: Employees shall not provide another
employee's home telephone number or address contact information to a salesperson
without the employee's consent. A motion was made by Commissioner Nordin,
seconded by Commissioner Walser to approve the amended language to the section,
solicitation on utility premises. Motion was unanimously carried. (Changes attached.)
Division Reports
Business — Jan Sifferath
• Offered an apology in regard to an energy conservation rebate that was
issued over the allotted level of authority amount of $25,000.
• Testing being done with parallel generation in AUS
• Testing being done in CIS for AMI
• Will revisit PILOT verbiage
• Received MVRS software upgrade for meter reading
Electric — Steve Lancaster
• Generation set replacement timeline received from consultants for Plant 1
• Here next week giving a presentation for the generation set replacement are:
Rolls- Royce, General Electric /Jenbacher and Wartsila
• Randy and Steve visited a plant in Dallas last week regarding these same
engines
• Presented an ad for accepting bids for surplus property. This property is from
three electrical generation sets and will be sold as scrap on a price per ton
basis. A motion was made by Commissioner Walser, seconded by
Commissioner Nordin to approve bids for surplus property. Motion was
unanimously carried. (Ad attached.)
Gas — John Webster
• Received MNDOT notice of reconstruction of Highway 60 in 2013; we need to
review our pipeline easements
• Preparing for the annual damage prevention meeting
• Received MNOPS Alert Notices regarding installing barricades around every
commercial /industrial meter. Meetings are in place regarding the challenges
placed upon the utilities to comply with these notices.
GM Kumm discussed HDR gant chart timeline associated with the task of replacing
engines and he discussed HUC's goal of being PCB free by 2014.
GM Kumm mentioned there is a new head of the Minnesota Office of Energy Security
and he mentioned that APPA is gathering information as it relates to the Federal
Government's position regarding the EPA rulings.
Legal Update
Nothing to report
Unfinished Business
None
New Business
Territory Agreement:
GM Kumm discussed HUC's oversight in honoring the Territory Agreement with
McLeod Coop. Discussions with McLeod Coop will be held regarding this past
due payment. GM Kumm mentioned to prevent this oversight in the future it is
now part of an employee's job description. A motion was made by Commissioner
Walser, seconded by Commissioner Nordin for GM Kumm to discuss past due
territory payments with McLeod Coop and authorize GM Kumm to negotiate
payment schedule. Motion was unanimously carried.
There being no further business, a motion was made by Commissioner Walser,
seconded by Commissioner Nordin to adjourn the meeting at 4:10 p.m. Motion was
unanimously carried.
ATTEST:
Dwight Bordson, President
Donald H. Walser, Commissioner
Regular Meeting
January 26, 2011
The Commission Board expressed their appreciation to Lin Madson in recognition of her
retiring after 32 years of dedicated service to Hutchinson Utilities Commission.
Members present: President Dwight Bordson; Commissioner Donald H. Walser;
Commissioner Paul Nordin; Attorney Marc Sebora, General Manager Michael Kumm
Members absent: Vice President Robert Hantge and Secretary Craig Lenz
President Bordson called the meeting to order at 3:02 p.m.
GM Kumm announced due to the absence of two Commissioners, to waive Article III,
Section 9 — Election and Tenure of Hutchinson Utilities Commission By -Laws, for
January 2011. A motion was made by Commissioner Nordin, seconded by
Commissioner Walser to waive the By -Laws to delay the Commission Reorganization of
president, vice president, and secretary until the February 2011 regularly scheduled
meeting. Motion was unanimously carried.
A motion was made by Commissioner Walser, seconded by Commissioner Nordin to
appoint Marc Sebora as legal counsel. Motion was unanimously carried.
President Bordson appointed Kim Koski as recording secretary and designated Citizens
Bank & Trust, Wells Fargo and Home State Bank as depository for utility funds.
The minutes of the December 29, 2010 regular meeting were reviewed. A motion was
made by Commissioner Nordin, seconded by Commissioner Walser to approve the
minutes as written. Motion was unanimously carried.
The December 2010 payables were discussed. A motion was made by Commissioner
Walser, seconded by Commissioner Nordin to ratify the payment of bills in the amount
of $3,631,603.94 (detailed listing in payables book). Motion was unanimously carried.
GM Kumm presented the December 2010 financial statements /budget year -to -date. An
updated rate comparison for residential natural gas and residential electric was handed
out showing we have the lowest gas rates and the second lowest electric rates. After
discussion, a motion was made by Commissioner Nordin, seconded by Commissioner
Walser to approve the financial statements /budget year -to -date. Motion was
unanimously carried. (Comparisons attached.)
GM Kumm presented advertisement for bids for directional drilling contractor for 2011-
2012. We obtain bids every two years for the construction season. A motion was made
by Commissioner Walser, seconded by Commissioner Nordin to approve the
advertisement for bids for directional drilling contractor for 2011 -2012. Motion was
unanimously carried. (Advertisement for bids attached.)
GM Kumm presented the Service Beyond City Limits of Hutchinson policy. This is part
of our yearly policy review and no changes are requested at this time.
GM Kumm presented the CIP Rebate Level of Authority policy. This is also a part of our
yearly policy review and no changes are requested at this time.
GM Kumm presented the proposed joint meeting dates. After discussion, a motion was
made by Commissioner Walser, seconded by Commissioner Nordin to designate the
Joint HUC /City meeting as a public meeting to be held on Wednesday, February 23,
2011 at 4:00 at the City Center Council Chambers. Motion was unanimously carried.
GM Kumm presented policies and requirements booklet, sections: MN Government
Data Practices Act & Public Records Request; electric service requirements & charges;
and temporary service — electric. This is part of our policy review and no changes are
requested at this time.
GM Kumm presented exempt and non - exempt handbooks, sections: solicitation on
utility premises; employee gifts; and flowers. The Board requested changes to the
exempt and non - exempt handbooks, section solicitation on utility premises. The
recommended changes were to the last sentence: Employees shall not provide another
employee's home telephone number or address contact information to a salesperson
without the employee's consent. A motion was made by Commissioner Nordin,
seconded by Commissioner Walser to approve the amended language to the section,
solicitation on utility premises. Motion was unanimously carried. (Changes attached.)
Division Reports
Business — Jan Sifferath
• Offered an apology in regard to an energy conservation rebate that was
issued over the allotted level of authority amount of $25,000.
• Testing being done with parallel generation in AUS
• Testing being done in CIS for AMI
• Will revisit PILOT verbiage
• Received MVRS software upgrade for meter reading
Electric — Steve Lancaster
• Generation set replacement timeline received from consultants for Plant 1
• Here next week giving a presentation for the generation set replacement are:
Rolls- Royce, General Electric /Jenbacher and Wartsila
• Randy and Steve visited a plant in Dallas last week regarding these same
engines
• Presented an ad for accepting bids for surplus property. This property is from
three electrical generation sets and will be sold as scrap on a price per ton
basis. A motion was made by Commissioner Walser, seconded by
Commissioner Nordin to approve bids for surplus property. Motion was
unanimously carried. (Ad attached.)
Gas — John Webster
• Received MNDOT notice of reconstruction of Highway 60 in 2013; we need to
review our pipeline easements
• Preparing for the annual damage prevention meeting
• Received MNOPS Alert Notices regarding installing barricades around every
commercial /industrial meter. Meetings are in place regarding the challenges
placed upon the utilities to comply with these notices.
GM Kumm discussed HDR gant chart timeline associated with the task of replacing
engines and he discussed HUC's goal of being PCB free by 2014.
GM Kumm mentioned there is a new head of the Minnesota Office of Energy Security
and he mentioned that APPA is gathering information as it relates to the Federal
Government's position regarding the EPA rulings.
Legal Update
Nothing to report
Unfinished Business
None
New Business
Territory Agreement:
GM Kumm discussed HUC's oversight in honoring the Territory Agreement with
McLeod Coop. Discussions with McLeod Coop will be held regarding this past
due payment. GM Kumm mentioned to prevent this oversight in the future it is
now part of an employee's job description. A motion was made by Commissioner
Walser, seconded by Commissioner Nordin for GM Kumm to discuss past due
territory payments with McLeod Coop and authorize GM Kumm to negotiate
payment schedule. Motion was unanimously carried.
There being no further business, a motion was made by Commissioner Walser,
seconded by Commissioner Nordin to adjourn the meeting at 4:10 p.m. Motion was
unanimously carried.
Donald H. alser, Commissioner
ATTEST: a4ff-�-�
D ght ordson, President
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Advertisement for Bids
for
DIRECTIONAL DRILLING CONTRACTOR FOR 2011 - 2012
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 8th day of March 2011,
and will publicly open and read aloud such Bids on the following work:
"DIRECTIONAL DRILLING CONTRACTOR FOR 2011 - 2012"
Proposals shall be properly endorsed and delivered in an envelope marked,
"DIRECTIONAL DRILLING CONTRACTOR FOR 2011 - 2012" and shall be addressed to:
Hutchinson Utilities Commission of the City of Hutchinson, 225 Michigan Street SE,
Hutchinson, Minnesota 55350.
All proposals shall be submitted in duplicate on the Bidder's own letterhead in
facsimile of the Proposal Form enclosed in the Specifications, or by utilizing the Proposal
Form enclosed with the Specifications by typing the official name of the Bidder at the top of
the form.
Each proposal 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 $10,000 as a guarantee that the Bidder will enter into the proposed Contract.
The successful Bidder shall furnish a Certificate of Insurance and proof that
Contractor complies with all parts of DOT 49 CFR Part 199, drug and alcohol testing.
Contractor must also provide Hutchinson Utilities a copy of the contractor's drug and
alcohol program that complies with DOT 49 CFR Part 199 as well as proof that all
employees that will be subcontracted to Hutchinson Utilities are currently covered under
this program.
No Bidder may withdraw his Bid or Proposal for a Period of thirty (30) days after
date of opening of Bids.
At the aforementioned time and place, or at such later time and Place as the Owner
then may fix, the Owner will act upon Proposals received and with its sole discretion may
award Contract(s) for the furnishing of said labor.
The work shall be started by May 1" 2011, on an as needed basis.
Specifications for bids are available at the Office of the Hutchinson Utilities, 225
Michigan Street, Hutchinson, Minnesota 55350.
The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson,
Minnesota reserves the right to reject any and all bids, or bid irregularities.
By �a"r--
d , President
Date —4%, J '�z
ATTESTED
By
Date 2 6 Z a) 1
EXEMPT AND NON - EXEMPT
Solicitation on Utility Premises
Salespersons offering merchandise not related to Utility business are prohibited from
soliciting during normal working hours. Employees are discouraged from soliciting other
employees and acceptance of an employee's offer is not mandatory for maintaining
employment. Employees shall not provide another employee's home telephone numher
eels contact information to a salesperson without the employee's consent.
BIDS FOR SURPLUS PROPERTY
Hutchinson Utilities Commission is accepting bids for surplus property. This property is
from three electrical generation sets and will be sold as scrap on a price per ton basis.
The bids will include price per ton for prepared steel, unprepared steel and copper wire.
The successful bidder will supply adequate containers to provide continuous disposal of
scrap during this process. Hutchinson Utilities personnel will disassemble equipment
and place it in containers provided by the successful bidder.
Submit bids to Hutchinson Utilities Commission, Attn: Roberta Yates, 225 Michigan St
SE, Hutchinson, Minnesota 55350. Bids need to be received by noon Thursday,
February 17, 2011. Hutchinson Utilities Commission reserves the right to reject any and
all bids.
When submitting bids, please provide the following information:
• Name
• Address
• Phone Number
For more information or to set up an appointment to view the equipment, contact Randy
Blake at 320 - 234 -0551.