The URL can be used to link to this page

04-25-2012 HUCMMINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, April 25, 2012 Call to order — 3:00 p.m. President Bordson called the meeting to order. Members present: President Dwight Bordson, Vice President Craig Lenz; Secretary Leon Johnson; Commissioner Monty Morrow; Commissioner Anthony Hanson; Attorney Marc Sebora; General Manager Michael Kumm. 1. Approve Minutes of March 28, 2012 Regular Meeting The minutes of the March 28, 2012 regular meeting were reviewed. A motion was made by Vice President Lenz, seconded by Commissioner Hanson to approve the minutes. Motion was unanimously carried. 2. Ratify Payment of Bills for March 2012 The March 2012 payables were discussed. A motion was made by Vice President Lenz, seconded by Secretary Johnson to ratify the payment of bills in the amount of $5,559,611.98 (detailed listing in payables book). Motion was unanimously carried. 3. Approve Financial Statements /Budget Year to Date GM Kumm presented the March 2012 financial statements /budget year -to -date. After discussion, a motion was made by Commissioner Hanson, seconded by Secretary Johnson to approve the financial statements /budget year -to -date. Motion was unanimously carried. 4. Approve HUC Resolution #1008 Relating to Public Utility Revenue Refunding Bonds, Series 2012A GM Kumm presented HUC Resolution #1008 Relating to Public Utility Revenue Refunding Bonds, Series 2012A. On April 24, City Council authorized HUC to proceed in this process. After discussion, a motion was made by Secretary Johnson, seconded by Commissioner Morrow to approve HUC Resolution #1008 Relating to Public Utility Revenue Refunding Bonds, Series 2012A. Motion was unanimously carried. (Resolution #1008 attached.) 5. Approve Changes to Policies and Requirements Booklet GM Kumm presented changes to the policies and requirements booklet, sections: natural gas service requirements and charges; temporary service; and natural gas meter requirements and placement. Recommended changes were made due to past practice and for clarity. In section natural gas service requirements and charges, the Board recommended changing the verbiage `overbuilt' to `built over by customer'. A motion was made by Secretary Johnson, seconded by Vice President Lenz to approve the changes to the policies and requirements booklet, sections: natural gas service requirements and charges; temporary service; and natural gas meter requirements and placement to include the Board recommended change to section natural gas service requirements and charges. Motion was unanimously carried. (Policies attached.) 1 6. Review Exempt and Non - Exempt Handbooks GM Kumm presented exempt and non - exempt handbooks, sections: Section 2 — administration of personnel policies; savings clause; and equal employment opportunity. This is part of HUC's policy review and no changes are requested at this time. 7. Approve Requisition #4863 for Ammonia Tank for New Unit 5 Steve Lancaster presented requisition #4863 for ammonia tank for new unit 5. After discussion, a motion was made by Vice President Lenz, seconded by Commissioner Hanson to approve requisition #4863 for ammonia tank for new unit 5. Motion was unanimously carried. (Requisition attached.) 8. Discuss Banking Requests for Proposals GM Kumm discussed HUC's interest in submitting requests for proposals in the next month to seek increased interest rates for money in the bank. 9. Division Reports Electric — Steve Lancaster • Ad for bid in the Leader for Units 3 & 4 RICE Rule Compliance Modifications; bid opening May 17. • Bids for mechanical and electrical to install new unit 5. • HUC received a second Reliable Public Power Provider (RP3) award from APPA. HUC is in the top 5 percent nationally. • Last month, attended the factory acceptance test for new unit 5. Gas — John Webster • Attended and gave presentation at the Midwest Energy Association Learning Summit. • Attended and gave presentation at the MNOPS Safety Conference at Cragun's last week. • Starting to work on 5t" Avenue next week. Putting in new plastic main on north side of 5t" Avenue. • Working with Ryan Ellenson to rectify a discrepancy on ownership of a pipeline with Northern Border Pipeline. • Receiving bids Monday for three casings in town. • Continuing to work on United Farmers Cooperative deal. Business — Jan Sifferath • Awarded HUC /MMUA Tom Bovitz $500 Scholarship to Hutchinson High School senior Robert Rasmussen, for submitting a paper on "Municipal Utilities — Good for all of Us ". • Sponsoring ten high school graduate photos in the Hutchinson Leader again this year. • HUC received the 2012 Tree Line Award; HUC's fifth year in a row. 2 Finance — Jared Martig Nothing to report GM Kumm gave an update on HUC working to provide natural gas services to the City of Brownton. GM Kumm mentioned that prepays are returning for natural gas and HUC would like to work through MMGA to realize a potential savings of approximately $90,000 per year. 10. Legal Update Attorney Sebora gave an update on the condemnation lawsuit served by Great River Energy involving two properties in Sibley County along the HUC pipeline. Attorney Sebora attended the condemnation hearing and reported Great River Energy will work something out to protect HUC's pipeline. Unfinished Business • Discuss Potential Capacity Sale GM Kumm and Steve Lancaster are continuing to work on the potential capacity sale. • Discuss Joint Meeting with City GM Kumm discussed his presentation for the Joint HUC /City meeting. • Vision Statements Two and Three GM Kumm discussed he will be reviewing the business plan portion with the commissioners. New Business None There being no further business, a motion was made by Vice President Lenz, seconded by Commissioner Hanson to adjourn the meeting at 4:34 p.m. Motion was unanimously carried. ATTEST: Craig Lenz, Vice President 3 Leon Johnson, Secretary MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, April 25, 2012 Call to order — 3:00 p.m. President Bordson called the meeting to order. Members present: President Dwight Bordson, Vice President Craig Lenz; Secretary Leon Johnson; Commissioner Monty Morrow; Commissioner Anthony Hanson; Attorney Marc Sebora; General Manager Michael Kumm. 1. Approve Minutes of March 28, 2012 Regular Meeting The minutes of the March 28, 2012 regular meeting were reviewed. A motion was made by Vice President Lenz, seconded by Commissioner Hanson to approve the minutes. Motion was unanimously carried. 2. Ratify Payment of Bills for March 2012 The March 2012 payables were discussed. A motion was made by Vice President Lenz, seconded by Secretary Johnson to ratify the payment of bills in the amount of $5,559,611.98 (detailed listing in payables book). Motion was unanimously carried. 3. Approve Financial Statements /Budget Year to Date GM Kumm presented the March 2012 financial statements /budget year -to -date. After discussion, a motion was made by Commissioner Hanson, seconded by Secretary Johnson to approve the financial statements /budget year -to -date. Motion was unanimously carried. 4. Approve HUC Resolution #1008 Relating to Public Utility Revenue Refunding Bonds, Series 2012A GM Kumm presented HUC Resolution #1008 Relating to Public Utility Revenue Refunding Bonds, Series 2012A. On April 24, City Council authorized HUC to proceed in this process. After discussion, a motion was made by Secretary Johnson, seconded by Commissioner Morrow to approve HUC Resolution #1008 Relating to Public Utility Revenue Refunding Bonds, Series 2012A. Motion was unanimously carried. (Resolution #1008 attached.) 5. Approve Changes to Policies and Requirements Booklet GM Kumm presented changes to the policies and requirements booklet, sections: natural gas service requirements and charges; temporary service; and natural gas meter requirements and placement. Recommended changes were made due to past practice and for clarity. In section natural gas service requirements and charges, the Board recommended changing the verbiage 'overbuilt' to 'built over by customer'. A motion was made by Secretary Johnson, seconded by Vice President Lenz to approve the changes to the policies and requirements booklet, sections: natural gas service requirements and charges; temporary service; and natural gas meter requirements and placement to include the Board recommended change to section natural gas service requirements and charges. Motion was unanimously carried. (Policies attached.) 1 6. Review Exempt and Non - Exempt Handbooks GM Kumm presented exempt and non - exempt handbooks, sections: Section 2 — administration of personnel policies; savings clause; and equal employment opportunity. This is part of RUC's policy review and no changes are requested at this time. 7. Approve Requisition #4863 for Ammonia Tank for New Unit 5 Steve Lancaster presented requisition #4863 for ammonia tank for new unit 5. After discussion, a motion was made by Vice President Lenz, seconded by Commissioner Hanson to approve requisition #4863 for ammonia tank for new unit 5. Motion was unanimously carried. (Requisition attached.) 8. Discuss Banking Requests for Proposals GM Kumm discussed HUC's interest in submitting requests for proposals in the next month to seek increased interest rates for money in the bank. 9. Division Reports Electric — Steve Lancaster • Ad for bid in the Leader for Units 3 & 4 RICE Rule Compliance Modifications; bid opening May 17. • Bids for mechanical and electrical to install new unit 5. • HUC received a second Reliable Public Power Provider (RP3) award from APPA. HUC is in the top 5 percent nationally. • Last month, attended the factory acceptance test for new unit 5. Gas — John Webster • Attended and gave presentation at the Midwest Energy Association Learning Summit. • Attended and gave presentation at the MNOPS Safety Conference at Cragun's last week. • Starting to work on 5th Avenue next week. Putting in new plastic main on north side of 5th Avenue. • Working with Ryan Ellenson to rectify a discrepancy on ownership of a pipeline with Northern Border Pipeline. • Receiving bids Monday for three casings in town. • Continuing to work on United Farmers Cooperative deal. Business — Jan Sifferath • Awarded HUC /MMUA Tom Bovitz $500 Scholarship to Hutchinson High School senior Robert Rasmussen, for submitting a paper on "Municipal Utilities — Good for all of Us ". • Sponsoring ten high school graduate photos in the Hutchinson Leader again this year. • HUC received the 2012 Tree Line Award; HUC's fifth year in a row. E Finance —Jared Martig Nothing to report GM Kumm gave an update on HUC working to provide natural gas services to the City of Brownton. GM Kumm mentioned that prepays are returning for natural gas and HUC would like to work through MMGA to realize a potential savings of approximately $90,000 per year. 10. Legal Update Attorney Sebora gave an update on the condemnation lawsuit served by Great River Energy involving two properties in Sibley County along the HUC pipeline. Attorney Sebora attended the condemnation hearing and reported Great River Energy will work something out to protect HUC's pipeline. Unfinished Business • Discuss Potential Capacity Sale GM Kumm and Steve Lancaster are continuing to work on the potential capacity sale. • Discuss Joint Meeting with City GM Kumm discussed his presentation for the Joint HUC /City meeting. • Vision Statements Two and Three GM Kumm discussed he will be reviewing the business plan portion with the commissioners. New Business None There being no further business, a motion was made by Vice President Lenz, seconded by Commissioner Hanson to adjourn the meeting at 4:34 p.m. Motion was unanimously carried. ATTEST: Craig Lenz, Vice Preside 3 n Johnson, Secretary Resolution #1008 Adopted April 25, 2012 HUTCHINSON UTILITIES COMMISSION RESOLUTION RELATING TO PUBLIC UTILITY REVENUE REFUNDING BONDS, SERIES 2012A; AUTHORIZING THE HUTCHINSON CITY COUNCIL TO PROVIDE FOR THE ISSUANCE AND SALE THEREOF BE IT RESOLVED by the Hutchinson Utilities Commission (the "Commission ") as follows: 1. Recitals. The City of Hutchinson (the "City ") owns and operates through the Commission as a revenue - producing convenience, a system for the generation and distribution of electricity and natural gas for the use of the City and its inhabitants and other customers (the "Utility "). To finance the construction of improvements to the Utility and to refund outstanding bonds issued to refund bonds that financed improvements to the Utility, the City has heretofore issued its Public Utility Revenue Bonds, Series 2003B, dated, as originally issued, as of March 1, 2003, in the original principal amount of $31,725,000 (the "Series 2003 Bonds "). The principal and interest on the Series 2003 Bonds are payable from the net revenue of the Utility. The Series 2003 Bonds were issued pursuant to and secured by the covenants and agreements contained in a resolution adopted by the Hutchinson City Council on February 11, 2003 (the " Bond Resolution "), and the Bond Resolution was joined in and adopted by the Commission by a resolution adopted by the Commission on February 11, 2003. To refund all or a portion of the Series 2003 Bonds it has been proposed that the City issue a series of additional bonds under Section 6.03 of the Bond Resolution designated as the Public Utility Revenue Refunding Bonds, Series 2012A (the "Series 2012 Bonds "). The Series 2012 Bonds will be issued pursuant to and secured by the covenants and agreements in the Bond Resolution and a resolution adopted by the City Council on April 24, 2012 (the "Series 2012 Resolution "), which Series 2012 Resolution is attached hereto and by reference incorporated herein. 2. Authorization and Concurrence. The Commission hereby finds and determines that the issuance of the Series 2012 Bonds is necessary and in the best interests of the Commission and authorizes the City to issue the Bonds as provided in the Bond Resolution and the Series 2012 Resolution, and hereby joins in and adopts the Series 2012 Resolution, including all of the covenants and agreements therein contained with the same force and effect as if the Series 2012 Resolution had been adopted by the Commission. Adopted: April 25, 2012. Natural Gas Service Requirements and Charges HUC shall not install any facilities until all affected properties are within 6 inches of final grade. New Service Installations Single- family residential service —3/4 inch $200.00 Commercial, Industrial, Multi- family service Time and Material Expense HUC shall furnish and install the underground service line. The underground service to the meter is the property of HUC. Excess flow valves shall be installed on all new single - family residential services lines. All new natural gas consumer -owned fuel lines, downstream of the metering facilities, must be pressure tested, prior to the gas meter being set. The test must be verified by an approved inspector. No structures or buildings shall be located over underground natural gas lines. Natural gas con,inoc lineSiMeteFinn fonilitieS In the event a service line /distribution main has been built over by customer, the natural gas facilities must be relocated to a location agreed upon by HUC. The customer shall be responsible for all costs involved in relocating these facilities. No service line valve or any portion of the natural gas metering facilities may be buried. The customer shall be responsible for all costs incurred in raising all facilities. Installation of Natural Gas Service Lines — November 1 through March 31 Final determination on installation of natural gas service lines shall be made by HUC. Temporary Service HUC does not offer temporary natural gas service. Natural Gas Meter Requirements and Placement HUC shall furnish and install the natural gas meter at no charge to the customer. HUC reserves the right to specify the natural gas meter location on all installations. All meters must be located on an external wall of the building, at a distance of no less than 3 feet from fresh air intakes, windows or door openings. New construction natural gas meters must be located within 10 feet of the electric meter if HUC is providing both services. Access to all natural gas meters shall not be obstructed. Natural gas meters shall be located in ventilated spaces readily accessible for examination, reading, replacement or necessary maintenance. Decks, porches, etc. shall not be constructed over a natural gas meter. Natural gas meters shall not be placed where they will be subject to damage, such as adjacent to a driveway or other locations subject to vehicular traffic, in public passages, where they will be subject to excessive corrosion or vibration or in areas subject to ice and snow damage. Natural gas meters shall not be installed directly beneath external stairways. Natural gas meters shall not be located where they will be subjected to extreme temperatures or sudden extreme temperature changes (e.g., air ducts, dryer vents). Minimum distances between natural gas meters to furnace intakes shall be followed per the manufacturer's specifications. Natural gas regulators shall be located at least 3 feet from any source of ignition or any source of heat that may damage the facilities. HUC requires a minimum of a 3 -foot clear zone in front of the natural gas meter. Reasonable care must be taken to protect all metering facilities when remodeling, roofing, painting, etc. In the event of damage to the natural gas facilities, the customer shall be responsible for the cost of repairing or replacing the natural gas facilities. Conditions may exist which may require other restrictions or distances (e.g. multiple meters etc.). Modifications made to the customer's metering facilities, necessitated by customer changes, shall be performed by HUC, at the customer's expense. All natural gas service lines retired due to building demolition, overbuilding, etc. shall be retired at the customer's expense. Quotes to be provided when requested by customer. AnYAll exceptions require the approval of HUC prior to the start of construction. If violations or deviations are determined, the customer will shall be responsible for the cost of the correction. Single Family Dwellings HUC shall provide natural gas to residential customers at a the standard delivery pressure of 7 inches of water column, measured at the inlet to the natural gas meter. All residential natural gas metering facilities shall be located on the side of the home within 6 feet of the front building wall. Front building wall is defined as the wall nearest the street of the resident's living space. ti- Familv Dwellinas /Multiple Business Establishments Delivery pressures greater than 7 inches of water column, for multi - family and multiple business establishments, shall only be allowed by the prior approval of HUC. The customer must provide adequate over - pressure protection for all fuel lines subject to increased delivery pressure. The single metering of multiple - family dwellings, apartment buildings or multiple business establishments within a single building is permitted to the extent that each building is centrally heated. Individual metering is required for all individually heated, single - family private residences and each separately heated, owned and /or operated business. Please contact HUC for specifications regarding meter facilities. Commercial /Industrial Facilities Delivery pressures greater than 7 inches of water column, for commercial and industrial applications, shall only be allowed by the prior approval of HUC. The customer must provide adequate over - pressure protection for all fuel lines subject to increased delivery pressure. Please contact HUC for specifications regarding meter facilities. D ;a 70 CD O N CD CL 0 03 CD CL U3 o_ Z c) > o L', m o_ co o m m v Z (D O C 0 C-+ N v (D (D o (o (n cN O O N O N -4 CO Cf) v C m v � C) v zr X N (CZ (o C-0 (n A co (O N O O O O 0 0) c a cn -n -u no)� X 0 > X rn�Z0 O �wGO)2D °N mmz WNZm90 C)Nm al Z O Z o Z O0 m m -n -o = x o C o ww29 ooZ2_ cn cn ,n 4 -4ZD ��. Z Cl) �cn v, m w cn O Z G) -a 0 2 C --i 0 2_ Z U) Z C r m N n O U) O Z x CD n c O� z O O Co Ph O a) W c n Z CA O z C r --I rn n O Z m A C Fn O Z Ti O