09-26-2012 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, September 26, 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 August 29, 2012 Regular Meeting
The minutes of the August 29, 2012 regular meeting were reviewed. A motion was
made by Commissioner Hanson, seconded by Commissioner Morrow to approve
the minutes. Motion was unanimously carried.
2. Ratify Payment of Bills for August 2012
The August 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 $3,765,123.11 (detailed listing in payables book). Motion was unanimously
carried.
3. Approve Financial Statements /Budget Year to Date
GM Kumm presented the August 2012 financial statements /budget year -to -date.
After discussion, a motion was made by Commissioner Hanson, seconded by Vice
President Lenz to approve the financial statements /budget year -to -date. Motion
was unanimously carried.
4. Guest — Tom Kloss, Information Technology
Tom Kloss, IT Director with the City of Hutchinson presented the rationale behind
the calculation to determine "fair" fees for services the City Information Technology
Department provides to HUC. He also presented the HUC 2012 network
infrastructure. Benefits of a combined system between City and HUC are shared
services and licensing. Cost allocation discussed. For 2012, fees were $94,963 for
total hours allocated of 1,342. Discussed the 2012 cost breakdown using $94,963
in 2012 which is 25% of total IT budget. There is no projected increase in fees for
2013. Tom requests HUC calculate fees based on PC count and continue to in
2013. Tom discussed the future intranet project. President Bordson expressed his
appreciation to Tom for clearly laying out the allocations and thanked him for
exceeding the Board's expectations.
5. Update from City Attorney on Patent for the Real -Time Auto Suggestion for
Nodal Delivery in Energy Networks
Attorney Sebora spoke with David Fairbairn of Kinney & Lange Law Firm who
reviewed the provisional application. Mr. Fairbairn has not yet met with GM Kumm
to get additional information to finalize patent documentation. Mr. Fairbairn is also
working on getting the assignment of rights from the software programmer and has
been unsuccessful to date.
1
6. Transfer Additional Funds to City
GM Kumm, Commissioner Morrow, and President Bordson met with City and
requested City present HUC with an amount they needed to transfer additional
funds to City in 2013. They also discussed the modification of the PILOT to transfer
more money to City. City responded they need an additional $250,000 transferred
from HUC for 2013. Jared Martig and GM Kumm met with Commissioner Hanson
and presented two sets of 5 year projections with some recommendations to
Commissioner Hanson regarding the modification of the PILOT. Commissioner
Hanson stated he needed more time to review the documentation before making a
recommendation to the Board regarding the modification of the PILOT. After
discussion, a motion was made by Secretary Johnson, seconded by Commissioner
Hanson to approve the funding of a one -time additional transfer of $250,000 in
quarterly payments in 2013 to the City of Hutchinson to be allocated between the
two utilities. Motion was unanimously carried.
7. Approve Changes to HUC Mission Statement
GM Kumm presented the changes to the HUC Mission Statement. After
discussion, the Board recommended additional changes to the first paragraph
striking `to the' along with `and surrounding service area.' GM Kumm will present
the final verbiage changes at the next regular commission meeting.
8. Approve Changes to Policies and Requirements Booklet
GM Kumm presented changes to the policies and requirements booklet, sections:
• Payment of Your Bill
• Disconnection of Residential Services by HUC
• Definition of Your Bill
• Errors in Billing
Staff recommended changes to the first paragraph of Payment of Your bill (tabled
at the August regular commission meeting) by adding `Discover' and the sentence,
"When paying in any manner other than cash, no change will be given." Changes
to Disconnection of Residential Services by HUC and Definition of Your Bill are
due to the new After Hours Reconnection Policy. No changes were recommended
for the section, Errors in Billing. After further discussion, a motion was made by
Commissioner Morrow, seconded by Secretary Johnson to approve the changes to
the policies and requirements booklet, sections: Payment of Your Bill;
Disconnection of Residential Services by HUC; and Definition of Your Bill. Motion
was unanimously carried. (Changes attached.)
9. Review Exempt and Non - Exempt Handbooks
GM Kumm presented Exempt and Non - Exempt Handbooks sections: Appendix A,
Appendix B, Appendix C and Appendix D (non- exempt only).This is part of the
policy review and no changes were recommended by Staff.
10. Declare HUC Open House on October 11, 2012 as an Open Meeting
A motion was made by Vice President Lenz, seconded by Commissioner Hanson
to declare the HUC Open House scheduled for October 11, 2012, as an open
meeting. Motion was unanimously carried.
2
11. Approve Sale of Surplus Items
GM Kumm presented sale of surplus items. A motion was made by Commissioner
Hanson, seconded by Commissioner Morrow to approve the sale of surplus items.
Motion was unanimously carried. (Auction Items attached.)
12. Approve Spectrum Lease Agreement
GM Kumm presented the Spectrum Lease Agreement (tabled at the August
regular commission meeting). GM Kumm explained this agreement is for Spectrum
to maintain FCC licensing which HUC rents from them. After discussion, a motion
was made by Vice President Lenz, seconded by Secretary Johnson to approve the
Spectrum Lease Agreement. Motion was unanimously carried. (Agreement
attached.)
13. Approve United Farmers Cooperative Natural Gas Commodity Agreement
GM Kumm presented the United Farmers Cooperative Natural Gas Commodity
Agreement. The Board requested the agreement be revised to call out the terms
more specifically to a one year agreement tied to the Transmission Agreement with
United Farmers Cooperative, with the price being reviewed annually. After
discussion, a motion was made by Secretary Johnson, seconded by Commissioner
Morrow to approve the United Farmers Cooperative Natural Gas Commodity
Agreement amended to reflect the term is for one year tied to the Transmission
Agreement with United Farmers Cooperative. Motion was unanimously carried.
(Agreement attached.)
14. Approve Renewal of Northern Natural Gas Contract
GM Kumm presented the Renewal of Northern Natural Gas Contract. This is a
contingency plan to insure HUC has a loop feed for transmission into Hutchinson.
If HUC's natural gas pipe ruptures, HUC is tied to Northern Natural Gas. After
discussion, a motion was made by Vice President Lenz, seconded by
Commissioner Hanson to approve the renewal of Northern Natural Gas Contract.
Motion was unanimously carried. (Contract attached.)
15. Division Reports
Gas — John Webster
• Meeting this Thursday with Ryan Ellenson and GRE to discuss CapX 20/20
project.
• Brownton interconnect station is in the middle of construction.
• Meeting next Tuesday with GM Kumm and Brownton City Council to discuss
natural gas service.
• Talking with BP regarding their agreement which expires in December.
Business — Jan Sifferath
• Myron Polzin was promoted to Crew Chief; posting went up for Myron's position
with two internal candidates interviewing for the position.
• Update to Jan's research to receive information from more than one broker on
shopping the health /dental insurance market, feedback was received from a
Minneapolis broker that if multiple brokers request quotes from insurance
providers, the same pricing will be quoted for any broker. The current broker's
3
commission percentage was discussed. Our current broker reported there will
be a 0% increase in HUC's 2013 health insurance rates and possibly a
decrease in HUC's 2013 dental insurance rates. Discussion was held regarding
doing business locally. Jan will research further and email her
recommendations to the Board.
Electric — Steve Lancaster
• Removed last PCB transformer. HUC is now a PCB free company.
• 100% complete for underground conversion
• AMI complete (except two natural gas meters)
16. Legal Update
Nothing to report
Unfinished Business
• Discuss Potential Capacity Sale
GM Kumm explained potential capacity sale fell through. Working on other
potential deals.
• Discuss Credit Card Payments
Jan Sifferath discussed credit card payments (tabled at the August regular
commission meeting) and her findings that Rochester Utilities receives a flat fee
rate with Visa /Mastercard. Jan will research this further and report back to the
commission at the next regular commission meeting.
• Discussion Regarding Pre -Pay for Natural Gas
Nothing to report.
• Discuss HUC By -Laws
Discussion regarding HUC By -Laws (tabled at the August regular commission
meeting) and the consideration to change the by -laws to accommodate City's
request for a City official to be on the HUC agenda and attend commission
meetings. The Board requested GM Kumm to report back in the October
regular commission meeting with his recommended changes.
New Business
President Bordson discussed forming a subcommittee to conduct GM Kumm's
annual performance review and to review GM Kumm's employment contract for
2013. The Board recommended President Bordson and Vice President Lenz as
members of the subcommittee. After discussion, a motion was made by
Commissioner Hanson, seconded by Secretary Johnson to appoint President
Bordson and Vice President Lenz to a subcommittee to conduct GM Kumm's
annual performance review and to review GM Kumm's employment contract for
2013.
GM Kumm discussed the final changes to the Vision Statement 2. GM Kumm
will request approval at the next regular commission meeting.
12
GM Kumm handed out and discussed the rate study done by Owatonna which
HUC's electric and gas is represented and further validates HUC's own rate
study.
There being no further business, a motion was made by Vice President Lenz, seconded
by Commissioner Hanson to adjourn the meeting at 5:09 p.m. Motion was unanimously
carried.
ATTEST:
Dwight Bordson, President
5
Leon Johnson, Secretary
MINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, September 26, 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 August 29, 2012 Regular Meeting
The minutes of the August 29, 2012 regular meeting were reviewed. A motion was
made by Commissioner Hanson, seconded by Commissioner Morrow to approve
the minutes. Motion was unanimously carried.
2. Ratify Payment of Bills for August 2012
The August 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 $3,765,123.11 (detailed listing in payables book). Motion was unanimously
carried.
3. Approve Financial Statements /Budget Year to Date
GM Kumm presented the August 2012 financial statements /budget year -to -date.
After discussion, a motion was made by Commissioner Hanson, seconded by Vice
President Lenz to approve the financial statements /budget year -to -date. Motion
was unanimously carried.
4. Guest — Tom Kloss, Information Technology
Tom Kloss, IT Director with the City of Hutchinson presented the rationale behind
the calculation to determine "fair" fees for services the City Information Technology
Department provides to HUC. He also presented the HUC 2012 network
infrastructure. Benefits of a combined system between City and HUC are shared
services and licensing. Cost allocation discussed. For 2012, fees were $94,963 for
total hours allocated of 1,342. Discussed the 2012 cost breakdown using $94,963
in 2012 which is 25% of total IT budget. There is no projected increase in fees for
2013. Tom requests HUC calculate fees based on PC count and continue to in
2013. Tom discussed the future intranet project. President Bordson expressed his
appreciation to Tom for clearly laying out the allocations and thanked him for
exceeding the Board's expectations.
5. Update from City Attorney on Patent for the Real -Time Auto Suggestion for
Nodal Delivery in Energy Networks
Attorney Sebora spoke with David Fairbairn of Kinney & Lange Law Firm who
reviewed the provisional application. Mr. Fairbairn has not yet met with GM Kumm
to get additional information to finalize patent documentation. Mr. Fairbairn is also
working on getting the assignment of rights from the software programmer and has
been unsuccessful to date.
1
6. Transfer Additional Funds to City
GM Kumm, Commissioner Morrow, and President Bordson met with City and
requested City present HUC with an amount they needed to transfer additional
funds to City in 2013. They also discussed the modification of the PILOT to transfer
more money to City. City responded they need an additional $250,000 transferred
from HUC for 2013. Jared Martig and GM Kumm met with Commissioner Hanson
and presented two sets of 5 year projections with some recommendations to
Commissioner Hanson regarding the modification of the PILOT. Commissioner
Hanson stated he needed more time to review the documentation before making a
recommendation to the Board regarding the modification of the PILOT. After
discussion, a motion was made by Secretary Johnson, seconded by Commissioner
Hanson to approve the funding of a one -time additional transfer of $250,000 in
quarterly payments in 2013 to the City of Hutchinson to be allocated between the
two utilities. Motion was unanimously carried.
7. Approve Changes to HUC Mission Statement
GM Kumm presented the changes to the HUC Mission Statement. After
discussion, the Board recommended additional changes to the first paragraph
striking 'to the' along with 'and surrounding service area.' GM Kumm will present
the final verbiage changes at the next regular commission meeting.
8. Approve Changes to Policies and Requirements Booklet
GM Kumm presented changes to the policies and requirements booklet, sections:
• Payment of Your Bill
• Disconnection of Residential Services by HUC
• Definition of Your Bill
• Errors in Billing
Staff recommended changes to the first paragraph of Payment of Your bill (tabled
at the August regular commission meeting) by adding 'Discover' and the sentence,
"When paying in any manner other than cash, no change will be given." Changes
to Disconnection of Residential Services by HUC and Definition of Your Bill are
due to the new After Hours Reconnection Policy. No changes were recommended
for the section, Errors in Billing. After further discussion, a motion was made by
Commissioner Morrow, seconded by Secretary Johnson to approve the changes to
the policies and requirements booklet, sections: Payment of Your Bill;
Disconnection of Residential Services by HUC; and Definition of Your Bill. Motion
was unanimously carried. (Changes attached.)
9. Review Exempt and Non - Exempt Handbooks
GM Kumm presented Exempt and Non - Exempt Handbooks sections: Appendix A,
Appendix B, Appendix C and Appendix D (non- exempt only).This is part of the
policy review and no changes were recommended by Staff.
10. Declare HUC Open House on October 11, 2012 as an Open Meeting
A motion was made by Vice President Lenz, seconded by Commissioner Hanson
to declare the HUC Open House scheduled for October 11, 2012, as an open
meeting. Motion was unanimously carried.
FJ
11. Approve Sale of Surplus Items
GM Kumm presented sale of surplus items. A motion was made by Commissioner
Hanson, seconded by Commissioner Morrow to approve the sale of surplus items.
Motion was unanimously carried. (Auction Items attached.)
12. Approve Spectrum Lease Agreement
GM Kumm presented the Spectrum Lease Agreement (tabled at the August
regular commission meeting). GM Kumm explained this agreement is for Spectrum
to maintain FCC licensing which HUC rents from them. After discussion, a motion
was made by Vice President Lenz, seconded by Secretary Johnson to approve the
Spectrum Lease Agreement. Motion was unanimously carried. (Agreement
attached.)
13. Approve United Farmers Cooperative Natural Gas Commodity Agreement
GM Kumm presented the United Farmers Cooperative Natural Gas Commodity
Agreement. The Board requested the agreement be revised to call out the terms
more specifically to a one year agreement tied to the Transmission Agreement with
United Farmers Cooperative, with the price being reviewed annually. After
discussion, a motion was made by Secretary Johnson, seconded by Commissioner
Morrow to approve the United Farmers Cooperative Natural Gas Commodity
Agreement amended to reflect the term is for one year tied to the Transmission
Agreement with United Farmers Cooperative. Motion was unanimously carried.
(Agreement attached.)
14. Approve Renewal of Northern Natural Gas Contract
GM Kumm presented the Renewal of Northern Natural Gas Contract. This is a
contingency plan to insure HUC has a loop feed for transmission into Hutchinson.
If HUC's natural gas pipe ruptures, HUC is tied to Northern Natural Gas. After
discussion, a motion was made by Vice President Lenz, seconded by
Commissioner Hanson to approve the renewal of Northern Natural Gas Contract.
Motion was unanimously carried. (Contract attached.)
15. Division Reports
Gas — John Webster
• Meeting this Thursday with Ryan Ellenson and GRE to discuss CapX 20/20
project.
• Brownton interconnect station is in the middle of construction.
• Meeting next Tuesday with GM Kumm and Brownton City Council to discuss
natural gas service.
• Talking with BP regarding their agreement which expires in December.
Business — Jan Sifferath
• Myron Polzin was promoted to Crew Chief; posting went up for Myron's position
with two internal candidates interviewing for the position.
• Update to Jan's research to receive information from more than one broker on
shopping the health /dental insurance market, feedback was received from a
Minneapolis broker that if multiple brokers request quotes from insurance
providers, the same pricing will be quoted for any broker. The current broker's
3
commission percentage was discussed. Our current broker reported there will
be a 0% increase in RUC's 2013 health insurance rates and possibly a
decrease in HUC's 2013 dental insurance rates. Discussion was held regarding
doing business locally. Jan will research further and email her
recommendations to the Board.
Electric — Steve Lancaster
• Removed last PCB transformer. HUC is now a PCB free company.
• 100% complete for underground conversion
• AMI complete (except two natural gas meters)
16. Legal Update
Nothing to report
Unfinished Business
• Discuss Potential Capacity Sale
GM Kumm explained potential capacity sale fell through. Working on other
potential deals.
• Discuss Credit Card Payments
Jan Sifferath discussed credit card payments (tabled at the August regular
commission meeting) and her findings that Rochester Utilities receives a flat fee
rate with Visa /Mastercard. Jan will research this further and report back to the
commission at the next regular commission meeting.
• Discussion Regarding Pre -Pay for Natural Gas
Nothing to report.
• Discuss HUC By -Laws
Discussion regarding HUC By -Laws (tabled at the August regular commission
meeting) and the consideration to change the by -laws to accommodate City's
request for a City official to be on the HUC agenda and attend commission
meetings. The Board requested GM Kumm to report back in the October
regular commission meeting with his recommended changes.
New Business
President Bordson discussed forming a subcommittee to conduct GM Kumm's
annual performance review and to review GM Kumm's employment contract for
2013. The Board recommended President Bordson and Vice President Lenz as
members of the subcommittee. After discussion, a motion was made by
Commissioner Hanson, seconded by Secretary Johnson to appoint President
Bordson and Vice President Lenz to a subcommittee to conduct GM Kumm's
annual performance review and to review GM Kumm's employment contract for
2013.
GM Kumm discussed the final changes to the Vision Statement 2. GM Kumm
will request approval at the next regular commission meeting.
rd
GM Kumm handed out and discussed the rate study done by Owattana which
HUC's electric and gas is represented and further validates HUC's own rate
study.
There being no further business, a motion was made by Vice President Lenz, seconded
by Commissioner Hanson to adjourn the meeting at 5:09 p.m. Motion was unanimously
carried.
ATTEST: r'L�
Wight ordson, President
5
eon Johnson, Secretary
Payment of Your Bill
Payments are due by the date shown on the statement. Payments may be made by
cash, check, money order, VISA /MasterCard /Discover (VISA /MasterCard /-afld- Discover
payments can only be accepted during business hours) automatic bank payment plan,
or online at www.hutchinsonutilities.com.
When
paying in any manner other than cash, no change will be given.No second party or post-
dated checks will be accepted. Checks will not be held.
A dishonored check is treated as a non - payment. If notification of the dishonored check
is received by HUC, the customer will be charged a $30 processing fee.
During business office hours, customers may present payments at either the business
office or via HUC's drive -up window. Both options for payment are located at 225
Michigan Street Southeast, Hutchinson, MN. Additionally, HUC currently provides the
following locations for customers to deposit payments via a drop box: Cash Wise Foods,
Hutchinson City Center or RUC's business office located at 225 Michigan Street
Southeast.
Disconnection of Residential Services by HUC
1. Residential utility service shall be disconnected for any of the following reasons:
• Failure to pay a delinquent account or failure to comply with the terms of the
budget payment plan.
• Failure to contact HUC to gain protection from disconnection under the Cold
Weather Rule.
• Failure to maintain the payment agreement established under the Cold Weather
Rule.
• Failure to comply with deposit requirement.
• Failure to pay for merchandise or charges for non - utility service billed by HUC.
• Payment of bill with a dishonored check.
• Failure to provide authorized utility personnel access to utility equipment.
• HUC shall disconnect residential utility service, without notice, where service has
been reconnected without HUC's authorization.
• HUC shall disconnect residential utility service, without notice, where it has
reasonable evidence that utility service is being obtained by potentially unsafe
devices or potentially unsafe methods that stop or interfere with the proper
metering of the utility service.
• HUC may disconnect residential utility service, without notice, where a
dangerous condition exists for as long as the condition exists.
• At the request of the property owner, as long as it's currently in owner's name.
• At the request of the realtor /bank, as long as it's currently in their name.
• If an account owner or property owner does not notify us, within three (3)
business days following disconnection of service for non - payment, the bill will be
finaled and the account will be closed.
2. HUC must have a Landlord Agreement on file acknowledging that landlord /owner will
be responsible for all utility charges after the read -out date requested by a tenant.
Failure of the landlord /owner to execute this form will lead to a shut off of services on
the read -out date requested from tenant.
3. For all items mentioned in number 1 and 2 above, a disconnect /reconnect fee shall
be applied. The disconnect /reconnect fee is as follows:
• A $40 trip charge to disconnect.
• A $40 trip charge to reconnect, payment shall be made with cash, money order
or credit card during regular business hours-
• After hours reconnection will follow the After Hours Reconnection Policy
4. If a realtor /bank requests to have service reconnected for one day in order to
perform an inspection, a $40 trip charge to reconnect and a $40 disconnect charge
will be applied.
5. In the event of unauthorized use of, or tampering with the equipment of HUC, a
tampering charge of $100 will be assessed to the customer's account. The
appropriate law enforcement agency will be notified. HUC reserves the right to
charge the customer for the cost of repairs to the equipment of HUC.
6. A dishonored check will be assessed a $30 processing fee.
7. A dishonored check that was written to avoid disconnection., or to get reconnected,
will be assessed a $30 processing fee; plus:
• A $40 trip charge to deliver a door hanger, giving customer 24 hours to make
check good with cash, money order or credit card.
8. WheR GUStOMeF who has been diSGonneGted for nen.-payment pays their bill and the
fees after regular business heum, reGOnneGt*E)n will follow the AfteF Hours
ReGG1-"f7-IriGfiei i PeliGY take plaGe nle later t7hlaR
9 p.m. if paymeRt 96 made after 9 ,, the reGeRneGtien well be done the following
8. 9.HUC is not required to furnish residential service under conditions requiring
operation in parallel with generating equipment connected to the customer's system
if such operation is hazardous or may interfere with its own operations or service to
other customers or operation as a condition or rendering service under such
circumstances. For additional information, see HUC's Parallel Generation Policy.
FAILURE TO RESPOND TO THE DISCONNECT NOTICE SET FORTH ON THE BILL
OR FAILURE TO PAY FOR SERVICES RENDERED BY HUC MAY RESULT IN THE
DISCONNECTION OF SERVICES TO THE PROPERTY WITHOUT ANY ADDITIONAL
NOTICE TO THE CUSTOMER. IT IS THE CUSTOMER'S RESPONSIBILITY TO PAY
FOR SERVICES RENDERED AND TO ADVISE HUC OF ANY CHANGE IN
ADDRESS. NEITHER HUC NOR THE CITY OF HUTCHINSON, NOR ANY OF THE
AGENTS, EMPLOYEES OR REPRESENTATIVES OF THE CITY OF HUTCHINSON
OR HUC, WILL BE RESPONSIBLE FOR ANY DAMAGES OR CLAIMS INCURRED AS
A RESULT OF THE DISCONNECTION OF SERVICES.
Residential utility service may not be disconnected or refused for any of the following
reasons:
• Delinquency in payment for services by a previous occupant of the premises to
be served.
• Failure to pay for a different rate classification of utility service.
• Failure to pay the account of another customer as guarantor thereof.
• Failure to pay charges arising from any underbilling occurring more than 2 years
prior to the current billing and due to any misapplication of rates or faulty
metering.
• If a customer is on the Budget Payment Plan and has a credit balance on
account.
Definition of Your Bill
Your bill provides:
• Account number /Customer number
• Due date
• Payment due
• Pre - authorized payment to be drawn from your bank on due date
• Budget amount due if on the budget plan
• Name /mailing address
• Service address
• Electric and fuel cost adjustments, if any
• Reading dates
• Days used
• Previous and current readings
• Usage
• Previous balance
• Payments made and date paid
• Electric and /or gas meter charges
• Amount charged to each meter
• Sales tax
• Any miscellaneous /trip charges
• Account balance
• Perforated top stub to remit with payment for timely and proper posting
• "2.75% or $XX.XX of your payment is transferred to the City of Hutchinson for use in
its General Fund."
• If applicable, a message on the bottom of the statement indicating past due amount
Meters are read approximately every 30 days. Estimated readings may also be taken if
access to the meter is not possible or the meter has stopped working.
AUCTION ITEMS
Description
1. Tow Master T16 Tandem Axel Trailer
2. Pneumatic Gopher With Hose
3. Pneumatic Gopher Without Hose
4. Welder, Lincoln, Ideal Arc 250
5. Tool Box, Truck Box Mounted
6. Back Pressure Control Valve, 2" Body,
600 PSIG Flanges, Model 370E -4B
Reserve Dollar Amount
$5000
$1500
$750
$0
$0
$0
Authorization Date y
'Northern
Natural Gas
Northern Natural Gas Company
Amendment to TF Throughput Service Agreement
Date: 09/14/2012
Shipper Name: HUTCHINSON UTILITY COMMISSION
Contract No.: 21279 (Agreement)
Amendment No.: 26
WHEREAS, the entitlement of this Agreement expires 10/31/2013 and is subject to Grandfathered Rollover Rights. Shipper
desires to rollover this Agreement for five (5) years at the maximum tariff rates.
NOW THEREFORE, the Agreement is amended as follows:
1. The volume, term, and/or point provisions are amended as follows:
a. The term of the Agreement is extended through 10/31/2018.
b. The contract maximum daily quantities, primary receipt and delivery points, and terms are set forth on Appendices "A"
and "B."
c. The Appendices to the Agreement are deleted in their entirety and the Appendices "A" and "B" attached hereto and
incorporated herein by reference are substituted therefor. All references to Appendix "A" or Appendix "B" shall be deemed to
refer to the Appendices attached hereto.
2. Shipper shall pay Northern's maximum rates and charges plus all applicable surcharges in effect from.time to time.
3. The parties agree that a facsimile or other electronic version of this document, when properly executed and transmitted,
shall be considered for all purposes to be an original document, and shall be deemed for all purposes to be signed and
constitute a binding agreement. The entire agreement must be faxed or transmitted to Northern. Upon Northern's acceptance
and execution, an executed copy will be returned via FAX to the number appearing on the faxed offer or such other number
as directed or otherwise electronically transmitted.
4. This Agreement, as amended, constitutes the entire agreement between the parties with respect to the subject matter of
this Agreement and shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors
and assigns. No promises, agreements or warranties additional to this Agreement other than as may be contained in
Northern's FERC Gas Tariff will be deemed to be a part of this Agreement nor will any alteration, amendment or
modification be effective unless confirmed in writing by the parties.
The effective date of this Amendment is 11/01/2013.
Except as amended herein, all provisions of the Agreement are hereby confirmed by the parties to be and remain in ful I force
and effect.
NORTHERN NATURAL GAS COMPANY
By: .1�111*11.i,e&
Title: VP Customer Service & Bus Dev
Date: 09/14/2012
HUTCH ON UTILITY COOMAMISSION
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SPECTRUM LEASE AGREEMENT
1 .1 ov 11h' /ol ol`►1
HUTCHINSON UTILITIES COMMISSION
AND
SENSUS USA INC.
( "Sensus ")
sEnsus
SPECTRUM LEASE AGREEMENT
This spectrum manager lease agreement (this "Agreement ") is entered into as of the day of
, 20_, by and between Sensus USA Inc. together with its wholly owned subsidiary,
Sensus Spectrum LLC, with offices at 8601 Six Forks Road, Suite 700, Raleigh, North Carolina,
27615 (collectively "Sensus "), and the entity last named below in the signature box as the Utility
( "Utility ") (each a "Party", collectively, the "Parties ").
Background
Utility has bought or will buy or use F1exNet equipment manufactured by Sensus;
Sensus is leasing spectrum to Utility to operate the FlexNet equipment;
The spectrum that Sensus is leasing is authorized by Sensus' FCC License(s) listed in Exhibit A,
below ( "FCC License "); and
Sensus is leasing spectrum to Utility in Utility's service area listed in Exhibit B, below (the
"Service Area ").
Agreement
NOW THEREFORE, in consideration of the mutual promises contained herein, the receipt and
sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:
1. Sensus hereby grants to Utility and Utility accepts a spectrum manager lease ( "Lease ")
over the frequencies of the FCC License and solely within Utility's Service Area. (The
frequencies of the FCC License within Utility's geographic Service Area are called the "Leased
Spectrum "). The Utility has entered into a separate agreement for a maintenance service paid on
a yearly basis. The yearly maintenance service fee is comprised of two elements; a fee for the
maintenance itself and a fee for spectrum use. As consideration for spectrum use, $900 will be
partitioned from the Utility's per base station payment to Sensus for maintenance service and is
hereby allocated to the spectrum lease pursuant to this Agreement.
2. Sensus will file with the Federal Communications Commission (FCC) a Form FCC 608,
notification/application for a long term spectrum manager lease. This Lease becomes effective
when the FCC receives the notification.
3. In order to do the FCC lease application, Utility will:
(a) Review pages 5 and 11, and sign page 11 of the draft Form FCC 608 which Sensus
will prepare for Utility. Utility's signature will indicate that Utility authorizes Sensus to
file the lease notification and that Utility has reviewed and approved the representations
on Form 608 demonstrating that Utility qualifies under FCC rules.
(b) Give Sensus the coordinates of the boundaries of Utility's Service Area or,
alternatively, approve Sensus' estimation of the same.
(c) In the event that Utility does not already have one, Utility hereby authorizes Sensus to
apply on Utility's behalf and obtain for Utility a Federal Registration Number (FRN, the
FCC's unique identifier for each licensee).
2
(d) Provide any other information or other cooperation reasonably necessary for the
Parties to perform as set forth herein.
4. Utility may transmit or receive over the Leased Spectrum only using FlexNet equipment
manufactured by Sensus and used in accordance with Sensus' specifications. Utility may use the
Leased Spectrum only to read and direct meters in support of Utility's primary utility business or
any other operation approved by Sensus in writing. Without limiting the foregoing, Utility is
prohibited from reselling, subleasing or sublicensing the Leased Spectrum or from transmitting
voice communications over the Leased Spectrum.
5. Unless terminated earlier (because for example Utility stopped using the FlexNet
equipment), this Lease will have the same term as the FCC license. If Utility is operating in
compliance with this Agreement and Utility's underlying agreement with Sensus and is current
on any payments owed to Sensus, when the FCC License renews, the Parties will apply to the
FCC to renew this Lease.
6. The Lease will terminate: (a) two months after Utility stops transmitting with FlexNet
equipment manufactured by Sensus; (b) upon termination, revocation or expiration of the FCC
License; or (c) upon Utility's breach of this Agreement or Utility's underlying agreement with
Sensus.
7. The following FCC requirements apply to this Agreement.
(a) Pursuant to 47 CFR 1.9040(a),
(1) Utility must comply at all times with applicable FCC rules. This Agreement may be
revoked by Sensus or the FCC if Utility fails to so comply;
(2) If the FCC License is terminated, Utility has no continuing right to use the Leased
Spectrum unless otherwise authorized by the FCC;
(3) This Agreement is not an assignment, sale or other transfer of the FCC License;
(4) This Agreement may not be assigned except upon written consent of Sensus, which
consent may be withheld in its discretion; and
(5) In any event, Sensus will not consent to an assignment that does not satisfy FCC
rules.
(b) Pursuant to the standards set forth in 47 CFR 1.9010, Sensus retains de facto control
over the applicable radio facilities, including that,
(1) Sensus will be responsible for Utility's compliance with FCC policies and rules.
Sensus represents and warrants that it has engineered the FlexNet equipment and
accompanying software and other programs to comply with FCC rules. Utility will
operate the FlexNet equipment solely in accordance with Sensus' specifications.
Sensus retains the right to inspect Utility's radio operations hereunder and to
terminate this Agreement or take any other necessary steps to resolve a violation of
FCC rules, including to order Utility to cease transmission. Sensus will act as
spectrum manager in assigning spectrum under the FCC License so as to avoid any
harmful interference or other violation of FCC rules. Sensus will be responsible for
resolving any interference complaints or other FCC rule violations that may arise;
and
(2) Sensus will file any necessary FCC forms or applications and Utility agrees
reasonably to assist Sensus with such filing by providing any necessary information
or other cooperation. Sensus will otherwise interact with the FCC with respect to this
Agreement, the FCC License or F1exNet equipment.
8. Utility agrees to report to Sensus promptly, and in no event later than 72 hours afterward,
any incident related to the Leased Spectrum, including where Utility experiences harmful
interference, receives a complaint or other notice of having caused harmful interference, or
receives any type of communication from the FCC or other government agency regarding radio
transmission.
9. The Parties agree to indemnify and hold each other harmless as follows.
(a) In the event that the FCC License is revoked, cancelled or terminated, or the FCC or
other government agency otherwise mounts an enforcement action with respect to radio
operation under this Agreement, and Utility has been in full compliance with this
Agreement, Utility's underlying agreement with Sensus, and Sensus' specifications, and
is current on any payments owed to Sensus, Sensus will indemnify and hold Utility
harmless for all liabilities, claims, costs, damages, fines forfeitures and expenses arising
out of such government action including, where necessary, Sensus will use commercially
reasonable efforts to migrate Utility to other suitable spectrum.
(b) Utility will indemnify Sensus and affiliated companies and entities, officers, directors
employees and agents from all liabilities, claims, costs, damages, fines forfeitures and
expenses arising out of Utility's breach of this Agreement.
10. Sensus' liability in any and all causes of action arising under, out of or in relation to this
Agreement, its negotiation, performance, breach or termination (collectively, "Causes of Action ")
shall be limited to direct damages. Sensus shall not be liable for any indirect, incidental, special
or consequential damages. This is so whether the Causes of Action are in tort, including, without
limitation, negligence or strict liability, in contract, under statute or otherwise. The limitations on
liability set forth in this Agreement are fundamental inducements to Sensus entering into this
Agreement. They apply unconditionally and in all respects. They are to be interpreted broadly so
as to give Sensus the maximum protection permitted under law.
[Rest of this page intentionally left blank.]
4
IN WITNESS WHEREOF, the Parties have executed this Lease as of the date first above
written.
SENSUS
SENSUS USA INC.
Name: Michael Tracy
Title: Executive Vice President
SENSUS SPECTRUM LLC
Name: Todd Ellis
Title: Sr. Product Manager, Spectrum
UTILITY
HUTCHINSON UTILITIES COMMISSION
By �f"--
Name:
Title: l s>
Utility contact person for FCC filings
Name: W F G;!-'I p
Telephone: d L 3 — S0y7
5
EXHIBIT A
FCC LICENSEO AND LICENSED FREQUENCIES
Call Sign
Market
Channel
Market Name
Number
Block
KNKV203
NWA255
03
U.S. and
Possessions
KNKV204
NWA255
04
U.S. and
F
I
Possessions
EXHIBIT B
GEOGRAPHIC BOUNDARIES OF UTILITY'S SERVICE AREA
Channels
(Base /Remote Frequency)
Locations
(Coordinates)
901.100- 901.200 MHz uplink,
940.100- 940.200 MHz downlink
44 54 41.2 N, 094 23 58.2 W
44 54 41.7 N, 094 23 56.6 W
44 54 29.6 N, 094 23 31.9 W
44 54 28.2 N, 094 23 30.6 W
44 54 12.0 N, 094 23 20.3 W
44 54 05.0 N, 094 23 07.4 W
44 54 04.9 N, 094 23 22.7 W
44 53 55.3 N, 094 23 22.9 W
44 53 55.3 N, 094 23 04.2 W
44 53 47.9 N, 094 23 04.5 W
44 53 50.2 N, 094 22 47.0 W
44 54 24.8 N, 094 22 46.0 W
44 54 24.4 N, 094 22 24.8 W
44 54 30.7 N, 094 22 24.3 W
44 54 31.3 N, 094 22 04.4 W
44 54 31.1 N, 094 2147.0 W
44 54 22.7 N, 094 2144.6 W
44 54 20.7 N, 094 2141.1 W
44 54 20.4 N, 094 2141.1 W
44 54 20.1 N, 094 2146.9 W
44 54 12.2 N, 094 2147.2 W
44 54 12.2 N, 094 2135.7 W
44 54 14.8 N, 094 2135.7 W
44 54 14.7 N, 094 2132.6 W
44 5412.2 N, 094 2132.6 W
44 54 11.6 N, 094 20 54.8 W
44 53 59.0 N, 094 20 54.6 W
44 53 59.0 N, 094 20 54.8 W
44 53 58.9 N, 094 2112.9 W
44 53 47.1 N, 094 2113.4 W
44 53 47.3 N, 094 2105.8 W
44 53 43.4 N, 094 2105.7 W
44 53 43.6 N, 094 20 45.7 W
44 53 40.4 N, 094 20 44.1 W
44 53 32.8 N, 094 20 44.2 W
44 53 32.8 N, 094 20 51.2 W
44 53 12.8 N, 094 20 50.6 W
44 53 12.7 N, 094 20 42.7 W
44 53 06.0 N, 094 20 42.6 W
44 53 06.3 N, 094 2101.3 W
44 53 12.3 N, 094 2101.6 W
44 53 12.4 N, 094 2106.0 W
44 53 06.5 N, 094 2106.0 W
44 53 06.6 N, 094 2111.5 W
44 53 12.5 N, 094 2111.6 W
44 53 12.3 N, 094 2120.8 W
44 52 40.7 N, 094 2120.3 W
44 52 40.9 N, 094 2133.2 W
44 52 14.1 N, 094 20 44.4 W
44 52 11.3 N, 094 20 47.9 W
44 52 07.7 N, 094 20 40.3 W
44 52 05.0 N, 094 20 37.2 W
44 52 06.8 N, 094 20 34.7 W
44 52 06.7 N, 094 20 33.8 W
44 52 01.5 N, 094 20 26.3 W
44 5154.5 N, 094 20 26.3 W
44 5154.0 N, 094 20 28.7 W
44 5151.2 N, 094 20 29.4 W
44 5148.3 N, 094 20 27.7 W
44 5147.0 N, 094 20 27.7 W
44 5146.5 N, 094 20 29.6 W
44 5146.6 N, 094 20 31.3 W
44 5147.9 N, 094 20 33.1 W
44 5150.3 N, 094 20 33.3 W
44 5152.1 N, 094 20 34.6 W
44 5154.7 N, 094 20 40.2 W
44 5154.1 N, 094 20 44.4 W
44 5154.7 N, 094 20 47.2 W
44 5156.4 N, 094 20 50.9 W
44 5157.4 N, 094 20 52.3 W
44 5159.6 N, 094 20 54.4 W
44 5159.3 N, 094 20 58.7 W
44 5158.2 N, 094 2101.1 W
44 5158.4 N, 094 2102.0 W
44 5158.7 N, 094 2102.5 W
44 52 01.0 N, 094 2102.8 W
44 5213.9 N, 094 2103.2 W
44 52 14.0 N, 094 2115.6 W
44 52 15.0 N, 094 2118.7 W
44 52 15.7 N, 094 2119.8 W
44 52 20.6 N, 094 2122.3 W
44 52 20.9 N, 094 2125.9 W
44 52 21.4 N,0942126.6W
44 52 23.2 N, 094 2126.8 W
44 52 27.5 N, 094 2135.7 W
44 52 26.5 N, 094 2139.9 W
44 52 26.4 N, 094 2141.9 W
44 52 27.3 N, 094 2144.8 W
44 52 20.0 N, 094 2140.1 W
44 52 19.9 N, 094 22 10.1 W
44 52 14.7 N, 094 22 10.3 W
44 52 14.8 N, 094 22 27.7 W
44 52 16.3 N, 094 22 32.3 W
44 52 20.9 N, 094 22 32.3 W
44 52 21.4 N,0942251.5W
44 52 28.2 N, 094 22 50.8 W
44 52 27.8 N, 094 23 09.9 W
44 52 35.7 N, 094 23 10.0 W
44 52 35.7 N, 094 23 17.5 W
44 52 36.7 N, 094 23 20.1 W
44 52 40.6 N, 094 23 16.6 W
44 52 40.7 N, 094 24 03.6 W
44 52 46.8 N, 094 24 03.8 W
44 52 46.8 N, 094 23 58.6 W
44 52 53.6 N, 094 23 58.6 W
44 52 53.6 N, 094 23 45.3 W
44 52 59.6 N, 094 23 45.2 W
44 52 57.8 N, 094 24 12.3 W
44 52 58.1 N, 094 24 33.3 W
44 52 55.1 N, 094 24 34.9 W
44 52 56.3 N, 094 24 39.0 W
44 52 56.6 N, 094 24 38.8 W
44 53 04.1 N, 094 24 33.4 W
44 53 07.5 N, 094 24 30.5 W
44 53 15.5 N, 094 24 22.9 W
44 53 34.1 N, 094 24 22.4 W
44 54 11.9 N, 094 24 09.8 W
44 5419.1 N, 094 24 10.3 W
44 54 24.4 N, 094 24 10.0 W
44 54 24.3 N, 094 23 58.6 W