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02-23-2011 HUCMRegular Meeting February 23, 2011 Members present: President Dwight Bordson; Vice President Robert Hantge; Commissioner Donald H. Walser; Commissioner Paul Nordin; Attorney Marc Sebora; General Manager Michael Kumm Members absent: Secretary Craig Lenz President Bordson called the meeting to order at 3:07 p.m. President Bordson called for the Commission reorganization. A motion was made by President Bordson, seconded by Commissioner Nordin to elect Robert Hantge to the position of president. Motion was unanimously carried. A motion was made by Commissioner Walser, seconded by President Bordson to elect Paul Nordin to the position of vice president. Motion was unanimously carried. A motion was made by Vice President Hantge, seconded by Commissioner Walser to appoint Dwight Bordson as secretary. Motion was unanimously carried. The minutes of the January 26, 2011 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 January 2011 payables were discussed. A motion was made by Vice President Hantge, seconded by Commissioner Walser to ratify the payment of bills in the amount of $3,757,229.39 (detailed listing in payables book). Motion was unanimously carried. GM Kumm presented the January 2011 financial statements /budget year -to -date. After discussion, a motion was made by Vice President Hantge, seconded by Commissioner Nordin to approve the financial statements /budget year -to -date. Motion was unanimously carried. GM Kumm presented the 2011 Medica health insurance contract. After discussion, a motion was made by Vice President Hantge, seconded by Commissioner Nordin to approve the 2011 Medica health insurance contract. Motion was unanimously carried. (Contract attached.) Steve Lancaster presented the bid tabulation for the surplus property at plant 1. After discussion, a motion was made by Commissioner Walser, seconded by Vice President Hantge to approve the bid tabulation for the surplus property at plant 1 from Wahl Rebuild & Repair Inc. Motion was unanimously carried. (Bid tabulation attached.) GM Kumm presented advertisement for bids for Natural Gas Fired Reciprocating Internal Combustion Engine Generator Set and Auxiliaries with a date for opening of bids to be determined at a later time. After discussion, the following language has been changed to read: "No Bidder may withdraw this Bid for a Period of sixty (60) days after date of opening of Bids." It previously read thirty (30) days. A motion was made by Commissioner Walser, seconded by Commissioner Nordin to approve the amended advertisement for bids per the staff's recommendation. Motion was unanimously carried. (Advertisement for bids attached.) GM Kumm presented for review the suggested PILOT verbiage. After discussion, the Board recommended the PILOT verbiage include a calculated dollar amount in the sentence which would read: `2.75% or $ of your payment is transferred to the City of Hutchinson for use in its General Fund.' The Board also recommended the fees for programming should not exceed $1,000. A motion was made by Vice President Hantge, seconded by Commissioner Nordin to approve the PILOT verbiage with the recommended additional language and the fees for programming not to exceed $1,000. Motion was unanimously carried. (Changes attached.) GM Kumm presented changes to the policies and requirements booklet, sections: electric meter requirements; electric meter placement; and sealing of meters. After discussion, the Board recommended adding `to the outside' at the end of the last sentence. A motion was made by Commissioner Walser, seconded by Vice President Hantge to approve the changes suggested by the Board, in providing more clarity to the section: electric meter placement — commercial or industrial. Motion was unanimously carried. There were no changes for the electric meter requirements and sealing of meter sections. (Changes attached.) GM Kumm presented changes to the exempt and non - exempt handbooks, section: petty cash - exempt and non - exempt. The changes recommended by staff are job title change and to add the word `Itemized' to the fourth sentence. A motion was made by Commissioner Nordin, seconded by Commissioner Walser to approve changes to the section petty cash for both the exempt and non - exempt handbooks. Motion was unanimously carried. (Changes attached.) GM Kumm mentioned he will be attending the 2011 APPA Legislative Rally February 26 through March 3, 2011 held in Washington, DC. Division Reports Electric — Steve Lancaster • Discussed the opportunity for Commissioners to visit plant 1 to view engine removal process • Steve Lancaster, Mike Kumm and Randy Blake are taking a trip to Lake Charles, Louisiana to visit a Rolls -Royce engine plant Gas — John Webster Nothing to report Business — Jan Sifferath • Reviewing applications received for the Account Coordinator position • To date in 2011 we have received $3,000 back through the Revenue Recapture program Legal Update Nothing to report Unfinished Business • GM Kumm gave an update on the status of the HUC history book being added to the HUC web site • GM Kumm to follow up with past due territory agreement payments with McLeod Coop New Business • Discussion held regarding the City assessment to HUC for the Industrial Boulevard SE reconstruction There being no further business, a motion was made by Vice President Hantge, seconded by Commissioner Walser to adjourn the meeting at 3:55 p.m. Motion was unanimously carried. ATTEST: Robert Hantge, President Dwight Bordson, Secretary Regular Meeting February 23, 2011 Members present: President Dwight Bordson; Vice President Robert Hantge; Commissioner Donald H. Walser; Commissioner Paul Nordin; Attorney Marc Sebora; General Manager Michael Kumm Members absent: Secretary Craig Lenz President Bordson called the meeting to order at 3:07 p.m. President Bordson called for the Commission reorganization. A motion was made by President Bordson, seconded by Commissioner Nordin to elect Robert Hantge to the position of president. Motion was unanimously carried. A motion was made by Commissioner Walser, seconded by President Bordson to elect Paul Nordin to the position of vice president. Motion was unanimously carried. A motion was made by Vice President Hantge, seconded by Commissioner Walser to appoint Dwight Bordson as secretary. Motion was unanimously carried. The minutes of the January 26, 2011 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 January 2011 payables were discussed. A motion was made by Vice President Hantge, seconded by Commissioner Walser to ratify the payment of bills in the amount of $3,757,229.39 (detailed listing in payables book). Motion was unanimously carried. GM Kumm presented the January 2011 financial statements /budget year -to -date. After discussion, a motion was made by Vice President Hantge, seconded by Commissioner Nordin to approve the financial statements /budget year -to -date. Motion was unanimously carried. GM Kumm presented the 2011 Medica health insurance contract. After discussion, a motion was made by Vice President Hantge, seconded by Commissioner Nordin to approve the 2011 Medica health insurance contract. Motion was unanimously carried. (Contract attached.) Steve Lancaster presented the bid tabulation for the surplus property at plant 1. After discussion, a motion was made by Commissioner Walser, seconded by Vice President Hantge to approve the bid tabulation for the surplus property at plant 1 from Wahl Rebuild & Repair Inc. Motion was unanimously carried. (Bid tabulation attached.) GM Kumm presented advertisement for bids for Natural Gas Fired Reciprocating Internal Combustion Engine Generator Set and Auxiliaries with a date for opening of bids to be determined at a later time. After discussion, the following language has been changed to read: "No Bidder may withdraw this Bid for a Period of sixty (60) days after date of opening of Bids." It previously read thirty (30) days. A motion was made by Commissioner Walser, seconded by Commissioner Nordin to approve the amended advertisement for bids per the staffs recommendation. Motion was unanimously carried. (Advertisement for bids attached.) GM Kumm presented for review the suggested PILOT verbiage. After discussion, the Board recommended the PILOT verbiage include a calculated dollar amount in the sentence which would read: `2.75% or $ of your payment is transferred to the City of Hutchinson for use in its General Fund.' The Board also recommended the fees for programming should not exceed $1,000. A motion was made by Vice President Hantge, seconded by Commissioner Nordin to approve the PILOT verbiage with the recommended additional language and the fees for programming not to exceed $1,000. Motion was unanimously carried. (Changes attached.) GM Kumm presented changes to the policies and requirements booklet, sections: electric meter requirements; electric meter placement; and sealing of meters. After discussion, the Board recommended adding 'to the outside' at the end of the last sentence. A motion was made by Commissioner Walser, seconded by Vice President Hantge to approve the changes suggested by the Board, in providing more clarity to the section: electric meter placement — commercial or industrial. Motion was unanimously carried. There were no changes for the electric meter requirements and sealing of meter sections. (Changes attached.) GM Kumm presented changes to the exempt and non - exempt handbooks, section: petty cash - exempt and non - exempt. The changes recommended by staff are job title change and to add the word 'Itemized' to the fourth sentence. A motion was made by Commissioner Nordin, seconded by Commissioner Walser to approve changes to the section petty cash for both the exempt and non - exempt handbooks. Motion was unanimously carried. (Changes attached.) GM Kumm mentioned he will be attending the 2011 APPA Legislative Rally February 26 through March 3, 2011 held in Washington, DC. Division Reports Electric — Steve Lancaster • Discussed the opportunity for Commissioners to visit plant 1 to view engine removal process • Steve Lancaster, Mike Kumm and Randy Blake are taking a trip to Lake Charles, Louisiana to visit a Rolls -Royce engine plant Gas — John Webster Nothing to report Business — Jan Sifferath • Reviewing applications received for the Account Coordinator position • To date in 2011 we have received $3,000 back through the Revenue Recapture program Legal Update Nothing to report Unfinished Business • GM Kumm gave an update on the status of the HUC history book being added to the HUC web site • GM Kumm to follow up with past due territory agreement payments with McLeod Coop New Business • Discussion held regarding the City assessment to HUC for the Industrial Boulevard SE reconstruction There being no further business, a motion was made by Vice President Hantge, seconded by Commissioner Walser to adjourn the meeting at 3:55 p.m. Motion was unanimously carried. Dwight Bordson, Secretary ATTEST: e antge, President MASTER GROUP CONTRACT BETWEEN HUTCHINSON UTILITIES AND MEDICA INSURANCE COMPANY pursuant to Section 5.2. If Employer fails to pay the required Premium within the grace period described in Section 5.2, the Contract will be terminated, subject to a 30 -day advance written notice of termination by MIC to Employer. The date of the termination shall be retroactive to not more than 30 days prior to the effective date of the notice of termination; (b) On the date specified by MIC because Employer committed fraud (through act, practice or omission) or intentionally provided MIC with false information material to the execution of this Contract or to the provision of Benefits under this Contract. MIC has the right to rescind this Contract back to the original effective date; (c) On the date specified by MIC due to Employer's violation of the participation or contribution rules as determined by MIC; (d) Automatically on the date Employer ceases to do business pursuant to 11 U.S.C. Chapter 7; (e) Automatically on the date Employer ceases to do business for any reason; (f) On the date specified by MIC, after at least 90 days prior written notice to Employer, that this Contract is terminated because MIC will no longer issue this particular type of group health benefit plan within the applicable employer market; (g) On the date specified by MIC, after at least 180 days prior written notice to the applicable state authority and Employer, that this Contract will be terminated because MIC will no longer renew or issue any employer health benefit plan within the applicable employer market; (h) If this Contract is made available to Employer only through one or more bona fide associations, on the date specified by MIC after Employer's membership in the association ceases; (i) Automatically on the date that Employer fails to maintain any active employees who are Subscribers; Q) Any other reasons or grounds permitted by the licensing laws and regulations governing MIC. Notwithstanding the above, MIC may modify the Premium rate and /or the coverage at renewal. Nonrenewal of coverage as a result of failure of MIC and the Employer to reach agreement with respect to modifications in the Premium rate or coverage shall not be considered a failure of MIC to provide coverage on a guaranteed renewable basis. Section 2.3 Notice of Termination. MIC will notify Employer in writing if MIC terminates this Contract for any reason. In accordance with applicable law, MIC will notify Subscribers in writing if MIC terminates this Contract pursuant to Section 2.2(a), (b), (d), (f) or (g). Employer will provide timely written notification to Subscribers in all circumstances for which MIC does not provide written notification to Subscribers. Section 2.4 Effect of Termination. In the event of termination of this Contract: (a) All Benefits under this Contract will end at 12:00 midnight Central Time on the effective date of termination; (b) MIC will not be responsible for any Claims for health services received by Members after the effective date of the termination; and MIC MGC 05 (8/05) Employer agrees to deliver such documents electronically to the extent permissible under Title I of the Employee Retirement Income Security Act of 1974, Department of Labor Regulation § 2520.104b -1(c), and Minn. Stat. § 72A.20, subd. 37. Such documents shall be delivered electronically only to Subscribers who meet the following requirements: (a) has the ability to access an electronic document effectively at any location where the Subscriber is reasonably expected to perform his or her duties as an employee, and (b) with respect to whom access to the plan sponsor's electronic information system is an integral part of those duties. The Employer shall implement procedures that ensure actual receipt of these documents and notify Subscribers of the significance of the materials at the time of delivery. In addition, the Employer shall inform the recipient of his or her right to request a paper version of these documents, and an expedient process for doing so. Upon such a request, Employer shall furnish the recipient with paper copies supplied by MIC. Employer shall inform MIC of individuals who do not qualify for electronic delivery because they do not meet the requirements regarding access to a computer, or they are not in the workplace, including but not limited to those on continuation coverage, on retiree coverage, or covered pursuant to a qualified medical child support order. Employer shall provide the individual's mailing information to MIC so that MIC can provide the documents. ARTICLE 5 PREMIUMS Section 5.1 Monthly Premiums. The monthly Premiums for this Contract are: set forth in Exhibit 2. The Premiums are due on the first day of each calendar month. Employer shall pay the Premiums to MIC in accordance with the method set forth in the invoice. Employer shall notify MIC in writing: (a) each month of any changes in the coverage classification of any Subscriber; and (b) within 30 days after the effective date of enrollments, terminations or other changes regarding Members. Section 5.2 Grace Period and Reinstatement. Employer has a grace period of 10 days after the due date stated in Section 5.1 to pay the monthly Premiums. If Employer fails to pay the Premium, the Contract will be terminated in accordance with Section 2.2(a). This Contract will be reinstated if Employer pays all of the Premiums owed on or before the end of the grace period. In the event this Contract is not reinstated pursuant to this Section, MIC shall not be responsible for any Claims for health services received by Members after the effective date of the termination. Section 5.3 Premium Calculation. The monthly Premiums owed by Employer shall be calculated by MIC using the number of Subscribers in each coverage classification according to MIC's records at the time of the calculation. Subject to Section 5.4, Employer may make adjustments to its payment of Premiums for any additions or terminations of Members submitted by Employer but not yet reflected in MIC's calculations. A full calendar month's Premiums shall be charged for Members whose effective date falls on or before the 15th day of that calendar month. No Premium shall be charged for Members whose effective date falls after the 15th day of that calendar month. With the exception of termination of coverage due to a Member's death, a Member's coverage may be terminated only at the end of a calendar month and a full Premium rate for that month will apply. In the case of a Member's death, that Member's coverage will be terminated on the date of death. MIC MGC 05 (8/05) ARTICLE 8 CLERICAL ERROR A Member will not be deprived of coverage under the Contract because of a clerical error. Furthermore, a Member will not be eligible for coverage beyond the scheduled termination date because of a failure to record the termination. ARTICLE 9 ERISA When this Contract is entered into by Employer to provide benefits under an employee welfare benefit plan governed by ERISA, MIC shall not be named as and shall not be the plan administrator of the employee welfare benefit plan, as that term is used in ERISA. MIC shall only be considered a named fiduciary for purposes of claims adjudication. The parties agree that MIC has sole, final, and exclusive discretion to: (a) interpret and construe the Benefits under the Contract; (b) interpret and construe the other terms, conditions, limitations and exclusions set out in the Contract; (c) change, interpret, modify, withdraw or add Benefits without approval by Members; and (d) make factual determinations related to the Contract and the Benefits. For purposes of overall cost savings or efficiency, MIC may, in its sole discretion, provide services that would otherwise not be Benefits. The fact that MIC does so in any particular case shall not in any way be deemed to require it to do so in other similar cases. MIC may, from time to time, delegate discretionary authority to other persons or entities providing services under this Contract. ARTICLE 10 DATA OWNERSHIP AND USE Information and data acquired, developed, generated, or maintained by MIC in the course of performing under this Contract shall be MIC's sole property. Except as this Contract or applicable law requires otherwise, MIC shall have no obligation to release such information or data to Employer. MIC may, in its sole discretion, release such information or data to Employer, but only to the extent permitted by law and subject to any restrictions determined by MIC. ARTICLE 11 CONTINUATION OF COVERAGE MIC shall provide coverage under this Contract to those Members who are eligible to continue coverage under federal or state law. MIC will not provide any administrative duties with respect to Employer's compliance with federal or state continuation of coverage laws. All duties of the Employer, including, but not limited to, notifying Members regarding federal and state law continuation rights and Premium billing and collection, remain Employer's sole responsibility. MIC MGC 05 (8/05) MIC. In the event of assignment, the Contract shall be binding upon and inure to the benefit of each party's successors and assigns. ARTICLE 16 DISPUTE RESOLUTION In the event that any dispute, claim or controversy of any kind or nature relating to this Contract arises between the parties, the parties agree to meet and make a good faith effort to resolve the dispute. The party requesting the meeting shall provide the other, in advance of the meeting, with written notice of the claimed dispute. Upon receipt of the written notice, representatives for each party shall meet promptly to attempt to resolve the dispute. If a mutually agreeable resolution is not reached within thirty (30) days following receipt of the written notice, either party may pursue legal action in accordance with the terms of this Contract. The parties may mutually agree to waive the informal dispute resolution process set forth herein. Any such waiver must be in writing and executed by both parties. ARTICLE 17 TIME LIMIT ON CERTAIN DEFENSES No statement made by Employer, except a fraudulent statement, shall be used to void this Contract after it has been in force for a period of 2 years. ARTICLE 18 RELATIONSHIP BETWEEN PARTIES The relationship between Employer and any Member is that of Employer and Subscriber, Dependent or other coverage classification as defined in this Contract. The relationships between MIC and Network Providers and the relationship between MIC and Employer are solely contractual relationships between independent contractors. Network Providers and Employer are not agents or employees of MIC. MIC and its employees are not agents or employees of Network Providers or Employer. The relationship between a Network Provider and any Member is that of provider and patient and the Network Provider is solely responsible for the services provided to any Member. ARTICLE 19 EMPLOYER RECORDS Employer shall furnish MIC with all information and proofs that MIC may reasonably require with regard to any matters pertaining to this Contract. MIC may at any reasonable time inspect all documents furnished to Employer by an individual in connection with the Benefits, Employer's payroll records, and any other records pertinent to the Benefits under this Contract. Unless Employer provides the appropriate written assurances required by 45 CFR 164.504, MIC will only provide Employer with summary health information (for the purposes of obtaining premium bids or for modifying, amending or terminating the group health plan only) and information on whether individuals are participating in the group health plan, or is enrolled in or has disenrolled from the health plan as provided in 45 CFR 164.504 (f)(1) and the minimum necessary information for purposes of auditing MIC's operations or services. MIC MGC 05 (8/05) ACCEPTANCE OF CONTRACT This Contract is deemed accepted by Employer upon the earlier of MIC's receipt of Employer's first payment of the Premium or upon Employer's execution of this Contract by its duly authorized representative. This Contract is deemed accepted by MIC upon MIC's deposit of Employer's first payment of the Premium. Such acceptance renders all terms and provisions herein binding on MIC and the Employer. IN WITNESS WHEREOF, MIC has caused this Contract to be executed on this January 25, 2011, to take effect on the Effective Date stated in Exhibit 1 to this Contract. MEDICA INSURANCE COMPANY 401 Carlson Parkway Minnetonka, MN 55305 (952) 992 -2200 Billing Address: NW 7958 P.O. Box 1450 Minneapolis, MN 55485 -7958 Mailing Address: P.O. Box 9310 Minneapolis, MN 55440 By: John Naylor Vice President and General Manager Commercial Sales By: James P. Jacobson Senior Vice President and Assistant Secretary MIU MUG 05 (8/05) 11 EMPLOYER Hutchinson Utilities Address: 225 Michigan Street Southeast Hutchinson, MN 55350 Telephone: (320) 587 -4746 ZMA � 1 Employer Representative: Jan Sifferath Date: a._ -'3 — 1( EXHIBIT 2 Premiums The monthly Premiums for this Contract are: Subscriber Classifications Monthly Premium Rate Class 1 (Single) MIC Choice $429.17 Class IV (Family) MIC Choice $1,088.07 MIC MGC 05 (8/05) Exhibit 2 Page 1 c O cn E O cn (v O to c L U 7 2 c O cu cu • r c to i? U CD iz 0 2 Q L vJ r O N ti r L *i O .�o U") V O N V) N 0 r- O � 1 LO N O N 1 m 0 LO 69- �U �U Uvi Uco J J 4) V •L' C c c c O ~ CD O O O O CL c4 0) p 0) O CL H> H> 613 H> V C c O C O c O O O a V O i 0 O O O O O O tam Q, m O co T-- O ui is co O Q O O � N � cv i cd}- Q a d U � O U sN- Z Q O 06 0 D C tLf _ L U o C: (a -6 U C L co CL W a� cu L d .Q Q N C d E O v O m to Q� C ►� N c 0 9 u Advertisement for Bids for "Natural Gas fired Reciprocating Internal Combustion Engine Generator Set and Auxiliaries" 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 2pm (CST) on the ? ?? day of April 2011, and will publicly open and read aloud such Bids on the following equipment: "Natural Gas fired Reciprocating Internal Combustion Engine Generator Set and Auxiliaries" Proposals shall be properly endorsed and delivered in an envelope marked, "Natural Gas fired Reciprocating Internal Combustion Engine Generator Set and Auxiliaries" and shall be addressed to: Administrative Coordinator, Hutchinson Utilities Commission, 225 Michigan Street SE, Hutchinson, Minnesota 55350. Bids shall be supplied in both hardcopy and electronic format. The name and address of the Bidder shall be clearly indicated on the outside of the package containing the bid. Bidder shall provide one (1) original (clearly marked as such) and 3 copies of the bid along with 2 CD disk containing electronic PDF files of their bid. All proposals shall be submitted on the Bidder's own letterhead. In facsimile of the Bid Form enclosed within 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 and Payment Bond after the Bid have been accepted. The successful Bidder shall furnish a Performance Bond and Payment Bond in an amount equal to one hundred per cent (100 %) of the Contract price to the Owner prior to the approval of the Contract. 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 equipment. Specifications may be obtained by contacting Mr James Booty, HDR Engineering Inc. 701 Xenia Avenue South Minneapolis, MN. Telephone number 763 -591 -5471. The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota reserves the right to reject any and all bids, or bid irregularities. President Date ;L 3e a.O // ATTESTED By Secretary Date PILOT Verbiage on Billing Statement 2.75% or use in its General Fund. of your payment is transferred to the City of Hutchinson for Commercial or Industrial All commercial and industrial electric meters must be located outside. If remodeling is done on the premises, which would cause the meter to be located inside, the owner, at owner's expense, must relocate the meter to the outside. EXEMPT Petty Cash Petty cash funds are kept with the Aeeeuntant Financial Manager. The petty cash fund will be used to reimburse payment up to $25.00. Any expenditure over $25.00 will be reimbursed by check. Itemized Rreceipts must be attached to a complete petty cash slip whenever possible. An employee may obtain an advance of petty cash by completing a petty cash slip and reconciling the advance with the actual amount as soon as possible. NON - EXEMPT Petty Cash Petty cash funds are kept with the Aeeeut Financial Manager. The petty cash fund will be used to reimburse payment up to $25.00. Any expenditure over $25.00 will be reimbursed by check. Itemized Rreceipts must be attached to a complete petty cash slip whenever possible. An employee may obtain an advance of petty cash by completing a petty cash slip and reconciling the advance with the actual amount as soon as possible.