01-26-1998 HUCMN
Regular Meeting
,January 26, 1998
Commissioners Ward, Carls, Ackland and Wetterling were present. Absent was
Commissioner Gilmer. Also present were Manager Kadrmas and Counsel G. Barry
Anderson.
President Ward called the meeting to order at 3:00 p.m.
The minutes of December 29, 1997, regular meeting were discussed. A motion was
made by Commissioner Wetterling, seconded by Commissioner Ackland to approve
the minutes as written. Motion was unanimously carried.
The December payables were discussed. A motion was made by Commissioner
Carls, seconded by Commissioner Ackland to accept the payables in the amount
of $1,473,212.84 (detailed listing in payables book). Motion was unanimously
carried.
The 1997 year -to -date (thru December) financial and budget reports were
discussed. Manager Kadrmas informed the Commission that the auditors are here
to audit our books and they'll be presenting their annual audit report at a future
meeting. A motion was made by Commissioner Ackland, seconded by
Commissioner Wetterling to accept the financial and budget reports. Motion was
unanimously carried.
Manager Kadrmas presented and discussed the following requisitions for approval:
• Requisition 10465: Replacement Truck #6 - Valley Sales of Hutchinson, Inc.,
Hutchinson, Minnesota $21,735
• Requisition 10462: Replacement Truck #11 - Valley Sales of Hutchinson,
Inc., Hutchinson, Minnesota $17,705
• Requisition 10464: Replacement Truck #18 - Erickson ChevrolettPontiac,
Dawson, Minnesota $14,752
• Requisition 10463: Replacement Truck #21 - Erickson Chevrolet/Pontiac,
Dawson, Minnesota $14,752
A motion was made by Commissioner Wetterling, seconded by Commissioner Carls
to approve all four of the above requisitions. Motion was unanimously carried.
Manager Kadrmas presented Requisition #10474 for removal of old transformer and
setting of new transformer at Plant #1. After discussion, a motion was made by
Commissioner Ackland, seconded by Commissioner Wetterling to approve the
requisition to Armstrong Rigging and Erecting, Inc. in the amount of $10,500. Motion
was unanimously carried.
Manager Kadrmas presented Requisition #10490 for rotary meters. After discussion,
a motion was made by Commissioner Carls, seconded by Commissioner Wetterling
to approve the requisition to Dresser Measurement Division in the amount of
$15,255.62. Motion was unanimously carried.
Manager Kadrmas presented Requisition #10495 for terminators and mounting brackets.
After discussion, a motion was made by Commissioner Wetterling, seconded by
Commissioner Ackland to approve the requisition to WESCO in the amount of $11,593.60.
Motion was unanimously carried.
Counsel Anderson asked for the Commissions approval, as a matter of formality, in the
settlement of the HUC /City of Hutchinson v. Coster Engineering law suit. The Settlement
Agreement and Release is to be executed by the Commission and returned to Gislason,
Martin & Varpness, P.A. Attorneys and Counselors At Law for further processing of
signatures. A motion was made by Commissioner Ackland, seconded by Commissioner
Wetterling to approve the execution of the four original documents of the Settlement
Agreement and Release. Motion was unanimously carried.
Manager Kadrmas presented recommendation for Plant 1 Transformer Repair (bid
tabulation attached). A motion was made by Commissioner Carls, seconded by
Commissioner Wetterling to award the bid to U.S. Transformer in the amount of $71,980.
Motion was unanimously carried.
Manager Kadrmas presented recommendation for Synchronous Circuit Switcher (bid
tabulation attached). ElectroTech / Siemens Energy & Automation, Inc. is a single source
supplier and has not received all the legal documents to complete the advertisement for
bids and therefore did not submit a bid bond. Counsel Anderson said we could waive the
bid bond because of a "technical imperfection ", and because they're the only bidder, but
a bid bond should be furnished before entering into a contract. After discussion, a motion
was made by Commissioner Cads, seconded by Commissioner Wetterling to award the bid
to ElectroTech / Siemens Energy & Automation, Inc. with the stipulation that a bid bond be
received before entering into a contract. Motion was unanimously carried.
General Manager's Report
"Big Shut Down" will be Sunday, February 1, 1998, to add a circuit breaker at the 69
kV switching station.
An Advertisement for Bids for Re- roofing #8 will come before the Commission for
approval at its February meeting.
The Energy Conservation Plan will need to be reported to the State of Minnesota
when the auditors finish auditing our books. The City of Hutchinson is looking into
a Computerized Energy Management System for the HATS facility. We would be
able to offer some assistance at the request of the City Council. If there's any
suggestions as to what to do with the funds, ideas can be brought to the next
meeting.
Will be attending a meeting on an independent system operator and tarriffs for
MAPP on February 13, 1998, at the Marriott in Bloomington.
• Reported on the joint MAPP membership meeting with Minnesota Municipal
Utilities Association. There seems to be some confusion on the part of the
other Utilities' as to the purpose of the joint membership. The intent letter is
there, but the suggestion is to put the signing of the application on hold and
see if other Utilities have an interest in the joint membership.
Old Business: None
New Business: None
There being no further business, a motion was made by Commissioner Carls,
seconded by Commissioner Wetterling to adjourn the meeting at 4:52 pm. Motion
was unanimously carried.
ATTEST: C-�M, 6La
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Mike Carls, Secretary
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RECOMMENDATION ON PLANT 1 TRANSFORMER REPAIR
FROM DAN GEIGER
After reviewing the 3 proposals received, I recommend that US Transformer be chosen. The
reasons are as follows:
- They will move the unit to their facility in Jordan, MN and do all work inside.
- They have the proper facilities for thoroughly drying the transformer, to prevent any damage
which may occur when the oil is removed.
- Their bid takes no exceptions to the specification.
- Their work includes replacing the 3 phase LTC motor with a new single phase motor.
- Their proposal was the most complete of the three submitted.
I do not recommend DYNEX for the following reasons:
- All work will be done outdoors in the power plant parking lot.
- Their bid has many exceptions to the specification.
- Their bid does not mention the 3 phase conversion at all.
- The unit would not be thoroughly tested before installing at HTI.
ABB is not recommended due to the significant higher bid amount.
NSP was solicited for a bid, but they were unable to prepare one in time. Their work scope would
have been similar to DYNEX because they are not accepting transformers at this time at their
Maple Grove facility.
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