12-11-1975 HUCMSpecial Meeting
December 11, 1975
All Commissioners were present; also Mgr. Wacker, Bill Marquardt,
and Orville Kuiken of the Utilities, and Don Swanson of Associated
Consultants; Andren C. Gibas, Circle Pines Utilities Commission,
Joseph A. Davis, Circle Pines Utilities Commission, Dewey Kasma, TKDA
& Associates - Consulting Engineers, Edwin Bloomstrand, Finance Officer,
and Wayne Dannheim, City Manager of Circle Pines.
President Quade called the meeting to order at 2 p.m.
Don Swanson of Associated Consultants presented Operating Rules and
Procedures between Hutchinson Utilities Commission and Circle Pines
Utilities Commission as follows:
OPERATING RULES AND PROCEDURES
OF THE
CIRCLE HUTCH UTILITY BOARD
This Supplement No. 1 made this day of , 1975,
between the Hutchinson Utilities Commission and Circle Pines Utilities
Commission.
Since the parties have entered into a joint and cooperative Agreement
dated April 2, 1974, to make more efficient use of their purchase of
natural gas through the Circle -Hutch Utilities Board and since the Federal
Power Commission in a directive dated November 26, 1975, authorized
Northern Natural Gas Co. to treat the Village of Circle Pines, MN, and
Hutchinson Utilities Commission as a single entity known as the Circle -
Hutch Utility Board until March 31, 1976, or until a final order is issued,
it is necessary that proper operating rules and procedures be set out
and agreed upon between the two Commissions.
Directors: The President of the Hutchinson Utilities Commission and the
Chairman of the Circle Pines Utility Commission shall be the
Directors of the Circle -Hutch Utility Board and may, at their
option, appoint a representative of each party hereto to be
responsible for the day to day operations and procedures
outlined herein.
Address: The official address of the Circle -Hutch Utilities Board shall
be in care of the Hutchinson Utilities, Hutchinson, MN 55350.
Northern Natural Gas Co. bills and all official correspondence
will be.sent to,this address and all dispatching will be per-
formed from this address.
Dispatching:Each day on or before 7:00 AM "Pipeline Standard Time" the
Circle Pines Dispatcher will notify the Hutchinson Dispatcher
of the following items:
1. Actual MCF used on the previous billing day.
2. Actual MCF used up to the present time of the current
billing day.
3. Estimated MCF to complete the load demand of the current
billing day.
The Hutchinson Dispatcher, representing the Circle Hutch
Utility, will in turn combine the Circle Pines and Hutchinson
data and notify the Northern Natural Dispatcher of gas used
and estimated load demand after subtracting equivalent MCF for
any anticipated use of the Hutchinson Peak Shaving Plant.
Circle Pines shall provide the Hutchinson Dispatcher with a
24 hour seven day telephone number to call to obtain informa-
tion concerning gas load, curtailment calls and weather conditions.
Billing: The first of each month the Circle Hutch Utility Board will
bill Circle Pines and Hutchinson Commissions for gas charges
and peak shaving services for the previous month ending the 27th.
All bills are to be paid on or before the 15th of the following
month.
Natural Gas Tariffs: Costs for all gas contracted for and /or consumed
shall be billed to the Contracting Commission (Circle Pines or
Hutchinson ) including any over -run or late payment penalty in-
curred by either Utility. It is understood of course, that the
Hutchinson Dispatcher will take all measures to prevent any
over -run of gas through use of the Hutchinson Peak Shaving
Plant. If the estimate received from Circle Pines is incorrect
and causes penalty Circle Pines Commission will be responsible
for that penalty.
Any day that one member has an outlet for gas available under
the other member's authorized but unrequired contract demand,
an exchange may take place. The charge for such gas from one
member to the other will be as per the applicable tariff of
combined commodity and contract demand charges with each MCF
pro -rated at 100% load factor.
Peak Shaving Plant Investment and Maintenance Cost: Since both Circle
Pines and Hutchinson Commissions are to share the benefits of
the Gas Peak Shaving Plant, it is agreed the cost of owning will
be shared according to the percentage of each member's portion
of last year's combined peak day usage. The cost of owning
shall include 4% annual depreciation, (based on twenty -five
year life) plus 6% simple interest plus maintenance. This
shall be pro -rated into 12 equal monthly payments which shall
be billed monthly to the Circle Pines Commission. A sample
calculation is shown in Exhibit No. 1.
Operating Costs: Operating Costs are comprised of propane, labor and
meter losses which will be billed only when the peak shaving plant
is used. Each member will be billed accordingly. A sample
calculation is shown in Exhibit No. 1. "
Indemnity: Each party agrees to defend, indemnify and hold harmless the
other party from and against any and all claims, liability,
loss, damage or expense of any nature whatsoever caused by or
resulting from negligent acts or omissions of the indemnifying
party, its employees or agents.
Liability: The gas furnished by the Circle Hutch Utility or by one
member to the other under this Agreement is supplied upon
the express condition that after it passes the designated
Point of Delivery, it becomes the property of the purchaser,
and seller shall not be liable.for loss or damage to any person
or property whatsoever resulting directly or indirectly from
the use, misuse or presence of said gas on purshaser's premises
or facilit *es, or elsewhere after it passes the Point of Deliveryto
the purchaser.
EXHIBIT 1
SAMPLE CALCULATIONS FOR PEAK SHAVING PLANT
INVESTMENT, MAINTENANCE AND OPERATIONAL CHARGES(1)
Previous Year's Peak Day Usage
Circle Pines 1104 MCF
Hutchinson 6372 MCF
Circle Hutch Utility 7476 MCF
Investment in Peak Shaving Plant
Contract Cost
Land Cost
Land Scaping
Driveway
Fence, Etc.
Total Cost
Annual Depreciation 25 (4 %)
Year Life + Interest (6 %)
Annual Maintenance Cost including
Heat for Vaporizer, electricity,
and repairs (pro -rated last
5 years)
Total Annual Cost to own
w/o operating
Circle Pines annual cost
@14.8% of combined peak day
Annual Cost for Investment &
Maintenance
Circle Pines Pro -rated
Monthly Billing
14.8
85.2
100.0
$155,300
9,435
250
1,355
500
$166,840
x .10
$16,684.00
258.41
$16,942.41
x .148
$ 2,507.48
$ 208.96
1
1
C]
I J
1
Operational Cost (2)
Propane Cost /equivalent MCF = Cost /Gal x 1,000,000 BTU /MCF
91,500 BTU /Gal
at 26.915C/Gal.
Operating Labor
Cost /MCF
Meter Loss
Total Cost
=$2.94
.24
.20
$3.38 /Equiv. MCF
(1) All costs are for sample purposes only and adjustable to
current conditions.
(2) Operational Charges will only be billed when peak shaving is
actually utilized.
Circle Pines Commission has taken the plan home for more study.
The latter part of the meeting was taken up in consideration of
purchasing a Turbine Generating Unit.
On a motion by Commissioner Filk, seconded by Commissioner Tracy,
and carried, it was agreed to purchase a Turbine Unit Mod Pad 25
from the Curtiss - Wright Corporation in conformance with their bid
of $2,847,578.00; and, further, to authorize the execution of the
contract by the appropriate officers, following the insertion of
certain additions agreed to by Curtiss - Wright, and execution of the
contract by Curtiss - Wright.
A motion was made by Commissioner Filk, seconded by Commissioner
Tracy, and carried, to deed that certain parcel of land to the
City of Hutchinson for right of way purposes on Jefferson Street.
(Copy attached)
A motion was made by Commissioner Filk, seconded by Commissioner
Tracy, and carried, to allow all charge -offs to be turned over to
a collection agency for further action.
Charge -Offs
December, 1975
October, Inc.
1- 9003 -0 -00
RO
12/5/73
$101.03
Jackie Gutormson
1- 9004 -0 -00
RO
8/5/74
5.38
Kevin Hancock
2- 9003 -0 -00
RO
8/1/74
29.05
Colleen Nichols
3- 9003 -0 -00
RO
6/4/74
23.90
Kenneth Farr
3- 9004 -0 -00
RO
7/24/73
6.31
Pete Rodriguez
3- 9005 -0 -00
RO
4/3/73
20.98
Wallace Crandall Estate
4- 9001 -0 -00
RO
5/8/73
3.02
Dave Larson
4- 9002 -0 -00
RO
11/1/73
$ 5.67
Sheryl Albrecht
4- 9003 -0 -00
RO
1/15/74
31.53
Bonita Eaton
4- 9005 -0 -00
RO
9/4/73
25.68
Gerald Thiesen
4- 9006 -0 -00
RO
7/2/73
5.86
Roger Hamilton
4- 9007 -0 -00
RO
6/6/73
6.46
Don Kramer
4- 9009 -0 -00
RO
1/29/74
56.98
James Meuleners
4- 9010 -0 -00
RO
11/7/74
10.19
Janet Hill
4- 9011 -0 -00
RO
4/30/74
13.31
Eloise Nussbaum
4- 9012 -0 -00
RO
11/25/74
7.79
Anita Miles
5- 9000 -0 -00
RO
5/6/74
17.10
Evon Terning
5- 9004 -0 -00
RO
6/12/74
12.29
Don Kramer
5- 9005 -0 -00
RO
9/7/74
17.13
Dwight Clark
5- 9006 -0 -00
RO
5/5/73
9.20
Robert Springman
6- 9001 -0 -00
RO
4/15/74
1,56
Connie Castle
6- 9000 -0 -00
RO
1/11/74
20.12
Joy Matzdorf
6- 9002 -0 -00
RO
5/23/73
6.11
John Stark
7- 9000 -0 -00
RO
5/8/73
4.08
Gary Dehn
7- 9001 -0 -00
RO
10/23/74
21.68
Gary Dehn
7- 9002 -0 -00
RO
10/23/74
34.84
Richard Wilsnn
7- 9003 -0 -00
RO
1/26/72
21.70
Max Dummer
7- 9005 -0 -00
RO
3/9/72
6.04
Robert Erickson
8- 9000 -0 -00
RO
1117/74
28.01
Berton Eurle
8-9002-0-00
RO
8/10/72
3.93
Dr. Philip Rose
9- 9000 -0 -00
RO
5/31/74
5.14
Dennis Olson
10- 9000 -0 -00
RO
6/14/73
1.37
Randy Miller
10- 9002 -0 -00
R0
5/1174.
29,41
Anthony Patla
11- 9003 -0 -00
RO
9/6/74
22.11
Roger Beilke
12- 9000 -0 -00
RO
1/25/74
28.28
Gregg Terning
12- 9002 -0 -00
RO
1/4/74
82.44
Wayne Dahme
12- 9004 -0 -00
RO
5/31/73
17.39
Wayne Dahme
12- 9005 -0 -00
RO
5/31/73
15.59
Dale Sturges
12- 9007 -0 -00
RO
10/31/73
5.25
Lonnie Nordby
16- 9001 -0 -00
RO
6/4/74
7.11
Jon E. Berganini
16- 9002 -0 -00
RO
3/1/74
155.92
Ralph Mortenson
16- 9003 -0 -00
RO
8/31/73
210.80
Kay Olsen
19- 9000 -0 -00
RO
6/29/73
1.39
David Frank
27- 9000 -0 -00
RO
2/28/74
42.93
George Belden
28- 9002 -0 -00
RO
6/29/73
8.81
Robert Posusta
30- 9000 -0 -00
RO
5/2/74
59.87
Alvin Schroeder
30- 9002 -0 -00
RO
1/31/74
53.37
John F. Johnson
31- 9001 -0 -00
RO
12/18/74
51.70
Stephen Eich
31- 9002 -0 -00
RO
8/17/73
30.57
Bernice Oberlin
31- 9006 -0 -00
RO
11/15/74
25.66
Gordon Pickett
32- 9000 -0 -00
RO
8/5/74
6.23
Marvin Ricketts
32- 9002 -0 -00*
RO
3/4/74
83.55
i
7
G. Zerwas 40- 9003 -0 -00 RO 8/28/73 $ 41.41
$1,512.66
There being no further business, the meeting adjourned at 4:30 p.m.
i
Clinton Tracy, Secretary
ATTE
H. P. Quade, President
Special Meeting
December 12, 1975
All Commissioners were present; also Mgr. Wacker, Don Swanson of
Associated Consultants and Charles Lowderback of Curtiss - Wright.
President Quade called the meeting to order at 9:15 a.m.
The meeting was called to discuss the Mod Pad 25 Turbine Unit
offered by Curtiss - Wright Corporation. Pertinent details will be
incorporated in the final contract. Mr. Lowderb ack was informed
that his company was awarded the contract to furnish a Mod Pad 25
Curtiss - Wright Turbine Unit.
There being no further business, the meeting adjourned at 10:15 a.m.
Clinton Tracy, Secretary
i
ATTE
H.--P-.—Quade, President
1