03-25-1996 HUCM37
Regular Meeting
March 25, 1996
All Commissioners were present; also present were Mgr. Kadrmas and Counsel
Prochnow.
President Cornell called the meeting to order at 3:00 p.m.
The minutes of February 26, 1996 regular meeting were reviewed. A motion was
made by Commissioner Carls, seconded by Commissioner Ackland to approve the
minutes as written. Motion was unanimously carried. The minutes of March 7,
1996 special meeting were reviewed. A motion was made by Commissioner Gilmer,
seconded by Commissioner Ackland to approve the minutes as written. Motion was
unanimously carried.
Representatives from Greencastle Association were at the meeting regarding a
letter they received which stated there had been a billing error on their gas meter
(incorrect meter multiplier) since August of 1992. They also received a corrected
utility bill which showed the amount they had been undercharged ($12,620.87 +
$145.00 tax = $12,765.87). After discussion, it was decided to put the
undercharged amount of $12,765.87 on a separate account. A letter will be sent
to Greencastle Association stating they may make monthly payments over the next
42 months to pay these charges, and there will be no late fees charged to this
account.
The February payables were discussed. A motion was made by Commissioner
Ackland, seconded by Commissioner Gilmer to accept the February payables in
the amount of $1,505,081.79 (detailed listing in payables book). Motion was
unanimously carried.
The 1996 year -to -date (thru February) financial and budget reports were reviewed.
A motion was made by Commissioner Ward, seconded by Commissioner Gilmer to
accept the financial and budget reports. Motion was unanimously carried.
Paul Harvego of Fawcett, Young and Associates reviewed the audit for year ended
December 31, 1995. Mr. Harvego suggested the Commission review Hutchinson
Utilities current electric and gas rate structure. This review is necessary to
determine if adequate income is being generated to build cash flow for future
needs.
Mgr. Kadrmas presented recommendation for 15KV cable for stock (bid tabulation
attached). After discussion, a motion was made by Commissioner Carls, seconded
by Commissioner Ackland to award the bid for 15KV cable for stock to Border
States Electric Supply- in the- amount of $25,453.50. Motion was unanimously
carried.
38
Mgr. Kadrmas presented recommendation for replacement compressor blades for G.E.
MS3002 (bid tabulation attached). After discussion, a motion was made by Commissioner
Carls, seconded by Commissioner Ward to award the bid for replacement compressor
blades for G.E. MS3002 to Lovegreen Turbine Services in the amount of $93,390
contingent upon second opinion from G.E. services engineer that these compressor blades
need to be replaced. Motion was unanimously carried.
Mgr. Kadrmas presented recommendation for shop work on HP and LP rotors for unit #8
(bid tabulation attached). After discussion, a motion was made by Commissioner Carls,
seconded by Commissioner Ackland to award the bid for shop work on HP and LP rotors
for unit #8 to Preco Turbine Services in the amount of $107,475.10. Motion was
unanimously carried.
Mgr. Kadrmas presented purchase order number 17241 for flexible load coupling for unit
#8. After discussion, a motion was made by Commissioner Ackland, seconded by
Commissioner Carls to approve purchase order number, 17241 for flexible load coupling
for unit #8 to Lucas Aerospace Power Transmission in the amount of $11,780. Motion was
unanimously carried.
Mgr. Kadrmas presented quotes for inlet guide vanes for unit #8 (quotation analysis
attached). After discussion, a motion was made by Commissioner Ackland, seconded by
Commissioner Carls to award the quote for inlet guide vanes for unit #8 to Preco Turbine
Services in the amount of $21,290. Motion was -unanimously carried.
Mgr. Kadrmas presented requisition for second stage high pressure turbine blades for unit
#1. After discussion, a motion was made by Commissioner Carls, seconded by
Commissioner Gilmer to approve requisition for second stage high pressure turbine blades
for unit #1 from General Electric in the amount of $71,000 conditioned upon a 25,000 hour
warranty on blades and paying cost of labor. Motion was unanimously carried.
Mgr. Kadrmas presented quotes for 6) 37.5 KVA transformers and 15) 25 KVA
transformers (quotation analysis attached). After discussion, a motion was made by
Commissioner Carls, seconded by Commissioner Ackland to award the quote for 6) 37.5
KVA transformers to Petersen - Wisdorf in the amount of $6,588 and for 15) 25 KVA
transformers to Petersen - Wisdorf in the amount of $13,455. Motion was unanimously
carried.
Northern Natural Gas Precedent Agreement was discussed. After discussion, a motion
was made by Commissioner Ward, seconded by Commissioner Ackalnd to approve the
Precedent Agreement between Northern Natural Gas Company and Hutchinson Utilities
Commission. Motion was unanimously carried.
Discussed update to Hutchinson Utilities Commission's Operations and Maintenance
manual (0 & M Manual). After discussion, a motion was made by Commissioner Carls,
seconded by Commissioner Ackland to approve the update to the 0 & M Manual. Motion
was unanimously carried.
Manager's Report:
1. Reviewed list of yearly dues and assessments paid by Hutchinson Utilities.
2. City of Hutchinson received a letter and a news article from a concerned
citizen regarding Legionnaires' disease. Mgr. Kadrmas was instructed to
write a letter to the citizen explaining how the water in Hutchinson Utilities'
cooling towers are treated (chemicals used, etc.).
3. Reviewed workers compensation insurance quotes. After discussion, it was
decided to continue Hutchinson Utilities workers compensation insurance
coverage with the League of Minnesota Cities.
Old Business:
Counsel Prochnow discussed the Cold Weather Rule. After discussion, a motion
was made by Commissioner Carls, seconded by Commissioner Ward to amend
Hutchinson Utilities current policy regarding cold weather rule. Motion was
unanimously carried.
New Business:
April's monthly meeting will start at 3:00 p.m. instead of 1:00 p.m.
There being no further business, the meeting was adjourned at 6:50 p.m.
ATTEST-.
0
G. P. Cornell, President
Roger Gilmer, Secretary
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UNIT #8 GAS TURBINE MAJOR INSPECTION
LOVEGREEN (PO# 17175) $59,272.00
ADDITIONAL WORK (REMOVE BROKEN BOLTS, INSPECT LOAD $10,000.00
GEAR, ECT.)
QUOTES FOR UNIT 8 COMBUSTION TURBINE REPAIRS PARTS
ACCESSORY GEAR BOX BEARINGS-
GE TOTAL=
$5,418.00
TURBINE SERVICES, LTD=
$2,110.00
INLET GUIDE VANES (1 SET)
TURBINE SERVICES, LTD=
$34,500.00
C -TECH =
$40,800.00
PRECO=
$21,290.00x
LOVEGREEN=
$21,822.00
HIGH PRESSURE COMPRESSOR BLADES- GE TOTAL=
$138,640.00
LOVEGREEN= 4 -5 WKS
$145,450.00
6 -8 WKS
$93,390.00
PRECO= 4 -5 WKS
$136,100.00
8 -10WKS
$129,100.00
FLEXIBLE LOAD COUPLING-
LUCAS= PO #17241
$11,780.00 'A
TRANSITION PIECES-
PRECO=
$3,150.00
LOVEGREEN=
$3,240.00
GE= (VERBAL)
$9,000.00
COST FOR G/E SERVICES ENGINEER
TO LOOK AT COMPRESSOR
BLADING FOR
SECOND OPINION=
LOWWEST OF FOUR BID TO PREFORM
SHOPWORK
ON UNIT #8 (HP AND LP ROTORS)
PRECO
$107,475.10
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