02-10-1975 HUCMRegular Meeting
February 10, 1975
All commissioners were present, also; Manager Wacker and Counsel
Gilmer.
Meeting was called to order at 2 P.M. by President Quade.
Minutes of the regular meeting of January 13, 1975 were read and
approved as read.
Motion was made by Commissioner Filk, seconded by Commissioner
Tracy and carried to allow the following:
Dammann's Construction Company, Inc. for estimate #1
$9,630.88.
Krasen Plumbing and Heating Co., Inc. for estimate #1
and #2 in the amounts of $8,638.20 and $8,180.10.
Peterson and Gilmer $75.67 January 3, 1975 and
$952.89 to February 3, 1975•
Oppenheimer, Wolff, Foster, Shepard and Donnely thru
December 17 in the amount of $6,230.74.
Wheatly and Miller for $128.56, a prorated expense with
Circle Pines Utilities.
Counsel Gilmer made a general report on the Worthington -Allis
Chalmers lawsuit. Progress is being made according to plans.
Manager Wacker presented a study conducted by Associated Consultants
concerning up- grading the electrical loop. Routes, type of
constructionand estimated costs were included in the study.
Recommendation was made by Peterson and Gilmer that the Hutchinson
Utilities Commission not pay the January 23, 1975 billing of
Krasen Plumbing & Heating Co., Inc. in the amount of $2,640.00 as
per correspondence dated February 12, 1975•
Motion was made by Commissioner Tracy, seconded by Commissioner Filk
and carried to send Ruth Hakel to Des Moines, Iowa, March 4 -5 -6, 1975
for a Fair Labor Standards Act and Equal Employment Opportunity
Act school sponsored by American Public Power Association.
Motion was made by Commissioner Tracy, seconded by Commissioner Filk
and carried authorizing Manager Wacker to attend a scheduled
meeting (Feb. 12, 1975, Omaha, Nebraska) regarding Liquid Fuel.
Discussion was held regarding the 20th annual International Gas
Turbine Conference to be held 3 -3 - 3 -6, 1975 at Houston, Texas.
Motion was made by Commissioner Tracy, seconded by Commissioner
Filk and carried to allow the Manager and any Commissioner able
to attend.
The following were allowed:
Municipal Electric Plant
Minn. Association of Co -Op
94o
Allen Office Supply
858 910
Culligan Water Cond.
730 932.
Abbot Electronics
946
Brinkman Studio
946
Municipal Elec. Plant
Petty Cash
Simonson Lumber
101
Municipal Water Dept.
530 730
Hutchinson Wholesale Supply
S30
Hutchinson Telephone Co.
872
Variety House
910
Home Bakery
930
Larson Communications
6o8
Plaza OK Hardware
530
Jacobson Hardware Hank
946
Hutchinson Oil Co.
718
Mohoring Motors
718
Lee's Supermarket
932
G.T.C. Auto Parts
530
Frazeens Hardware
932
McCormick Impl.
556.7
H. A. Holden Co.
520
K D U Z
946
Paul Lemke & Sons
101
Carr Flowers
312
Hutchinson Leader
946
Floor Care Supply
520
Zins Machine
518A
United Building Centers
730
Tippecanoe Press Co.
946
American Legion Post 96
312
Great Plains Supply
564
Taxgas
530
Electric Motor Co.
718
Pipeline & Gas Journal
946
Perfect Fit Glove Co.
408
Graphic Service Operation
858
Synthetic Products
119 124.1
LeSalle Cleaners
522
Leef Bros.
522
American Linen Supply
522
198.00
521.70
6.70
1.55
4.00
278.05
378.23
110.26
14.75
360.62
29.21
222.30
48.80
16.57
18.98
11.25
31.80
5.70
20.27
7.27
19.00
55.35
71.50
13.00
6.50
108.00
48.85
278.00
2.34
25.96
67.44
5.00
6.6o
31.26
9.00
71.03
77.18
180.77
42.71
62.73
19.90
/23
Family Rexal Drug
312
$ 7.74
Fountain Products of Minn
930
76.40
Coast to Coast Stores
564
15.48
National Food Stores
312
196.25
Standard Printing Co.
858
189.00
Anderson Chemical Co.
518A 518B
2;188.44
Crane Supply Co.
101
240.97
General Electric
123#8
195.36
H. & C Electric Supply
530
11.13
Burmeister Electric Co.
124.1 124.2
2,055.77
Northern States Supply
520
63.06
Standard Oil
510
37,142.22
Sterling Electric So.
408 530
168.79
Bureau of Business Practice
408
7.79
Alnor Instrument Co.
570
2.83
Snap on Tools Corp.
119
62.18
Superintendant of Documents
946
22.50
Hutchinson Insurance Agency
130
-1,891.86
League of Minn. Municipalities
946
15.00
McLeod Power Co -op Assn.
614
9.00
Amoco Oil Company
716
233.69
Minn. Wisc. Trucklines
530
9.43
Superintendents of Docements
946
4.80
Mobil Oil Corp.
716
113.70
H. Steve Wacker
908
233.58
Municipal Elec. Plant
Petty Cash
259.36
Transport Clearings
556.8
80.76
Natural Gas
Shell Oil Co.
522
Sears Robeck Co.
524
Hoffman Plg. Heating -
386
Farm & Home Dist.
536
SimUon Lumber
572
Alliden
608
Northern States Supply
536
American Meter Division
570
Guy Speaker Co.
370
Sid Harvey's
120
McLeod Co -op Power Assn.
512
G. F. Nemitz Sons
554
Amoco Oil Co.
522
Mobil Oil Inc.
522
Northern Natural Gas Co.
502
520
8.00
12.13
11.40
3.94
15.93
71.84
16.41
4o.24
156.65
120.53
19.50
90.00
163.67
116.40
920.00
1
Manager
Accounting & Purchasing
Engineering
AISSOCIATED ISONSULTANTS 11nc. Customer Servic(
REGISTERED PROFESSIONAL ENGINEERS Operation
3131 IFERNBROOK LANE NORTH Distribution
MINNEAPOLIS, MINNESOTA 55441 Production
612 /546-3321
2 1 7 5
To: Fi I: 4F G 9 0
T. 1,5 c. I I r, S o 11
A m(-o n
Li(.�
Util
_jtjt7' 20, J1,;ci:ss i:he rel'err;:_i ed
uni in,
M3-, 1TCvra*,-d U'tilities conffnission
e rb !:' '_1.k C h
r S C,.n J_ r; C c)rnraj S pion
C Lint Traci., cr>m-nv* T zj J.
. .1 Tj1jj! tics Coimnission
0 "Y e i C 1" e:, j tv ()' Hutchins
n
Mr. Lloge_-- for 11, u t.(-111-nson ut-iliti( ,,; Comm.
Mr. Knorr, r i C C c.) 11, 1, -n
� _ -) -, r,y
M 130 W 1" _�- e , G, e r I
Mi !`ra.n SaJsbv-,.c,,
C P Y
Cl�-,,uclz Nelsen, '7'enera_1_
Mi-. Bob apJones', r J_,.' Company
111r. D.ick Chic-fer, e
:`.tr -, C Companv
Mr. 0on Swanson, Y',--esidej7jL-, cofisultant-s, Inc.
Mr. 'Bob 17, a lmqui �i; 1'4cch . E.c.qr AL� s,*L' at.--ed , Con,,,; ul talits, , Inc •
The
items are TkOw all
ol'i-owing
right-
Load control.
b. Fuel nczzle"_-�
C. Steam seal
a. Steaia turbine Collt'1701 v;-,11se
C! Y)rcssure, :j"C_1CbACi171Cj va.1-ve for -j team seal spray chwn.ber
f. 13oi-1.er drum 1-evel coatrol 2.tL'.3-t-uP
2. The demineralize7_-Fs will, be cove-red by an extended -v7arranty
6,� lasl-ing untilil Fel:07'.7,;.� :C-1/ 20, 1976.
3. The bearings foy- of 'Clj,� -11-w<) lngt arsoll-Rand boiler
6k feed ptunpa wil'I. b(--, by cn tc�ncled warrai-Ity, lasting
until Tebrua771 2t,5,
4. GE ha.s promised 4L_0 pay Lh( inNMiCL'3, i-otaling approximately
JK $9,0()o f(-�r repaiy_�: ,C(_, V;o_i j
ler fec_�d pump and. f0x
other, .'ta.L-or charges.
Februa.-i-y 21, -1975
P a q
5 .
to fuj:nishinq
r,7". iia i n 3
extra vi",,ra'Cion 'L be retu.r.'ned to
for Cre t,(--) O',4Y1017,
7,
Tlv�.
�--.z ten de-.! 20, 19',"6,
"Let agrec:!ci to at a meeting
C',
I,- twnc", th,�- ;SIE, aiad A-sociated
�,-,peed control circuit
and
-T Qii
lini'Ler and soconC.-!ary
C',
Load
d.
'3 1
Steam and, -�-,O,-T �A
Gland ; 3eal
S -1-c r -11 valve.
a , contrf
,vi ,l ther mo'cou.,
i.
'not wel.31- le'vel- control.
j.
isteam drum level con-Crol.
I .
motor cor*; 11-.rol L-en i--o
m •
Demineralizers - tl.o automatic control. Does
not include of tan,,� or fittings.
discussed combnstion --ystc--,,n failure. Gr said the
problem was first noted in. late: October 1974. The problem
cujjajj.,-ia-t&i
in a bu-cn-thjcu in Decomber.
Hutchinson, KH GE STAG Unit
February Ilr 1975
Page 5
16. GE said unit was 679 sLort oF perfoymaace on base load.
(This agrees Witn ignoriated Consultants fiqures). Of this
amount, GE S, ,s 153 KU is attribumble to turbine and 329
KW dun to high condo nner vacuum, The total shortage of
479 KW is based upon a ccndenyer vacnum of 5" Ug! GE
by cleanipq t"bos, this could be lowered to 3" Hg.
This would reduce Uie performanca shortaqe from 479 KW to
315 KW, GE proposed to spttle Ur this 315 KW shortage
by paying for tba shortage at TIMAN. The dollar settlement
proposed by GE for this it= YaW
(315KAN195M) - $51,425
17. For GE's original offer, thn amount CA would be due for a
final settlement woold be�:
Remaining Contract Balanca $269,120
Mner's portlen of Re ":air, 109,000,
Subtotal -Y375,120
GE's Portion Zor Condense-7 61,425
Total Due GE $316,695
10 The Owner made the following courter offer to GE:
Perforrance: (479 TW)($l95/RW) = $93,405
Repairs (80) ($218,000) = 0?87,200
For the Owner's offer, the amount due GE would be:
original Contract Price
Owner's Portion of Ropairs
Subtotal
GE's Portion for Condenser
Total Due Gr
$269,120
87,200
$356,320
93,405
$262,915
HutcAinoon, MA M GTAK MY
February 21, 1975
Page 6
19.
GE
made a counter-offer
to
v"Mw for $209,120.
20.
Final
agreemeni
aLw roavonw
ratwocn GE and the Owner
to
settle for
$262,91%
21.
The
latest rcpair
wDiT cn
tin = turbine will extend
until
Pebruary
15, 157T.
22,
GE
aqrend to got
v Tatt-r
to t4c Nnyineu- on February 21,
on
Wo ahove,
Ar YnOverr's
7v-jnw and Vorwayding to
Commission.
.A ,
AlI,,.SSOOIATED 11iI.ONSULTANTS
REGISTERED PROFESSIONAL ENGINEERS
{ 3131 FERNBROOK LANE NORTH
jjj MINNEAPOLIS, MINNESOTA 55441
612 /546 -3321
Mr. H. Steve Wacker
Manager of Utilities
City of Hutchinson
Hutchinson, MN 55350
Dear Steve:
Manager
Accounting & Purchasing
Glnc. Engineering
Customer Servic(
Operation
Distribution
Pro'u(t��n
Fohruary 24, 1975
RE: GE STAG Unit
Enclosed is a letter from General Electric Company
regarding the settlement agreed to by the Commission and GE
on February 20. The enclosed letter is in conformance with
the verbal agreements.
We recommend you present the enclosed to the Commission
for signature of all three copies. Then, please return one
copy to us and one to Bob Wise. The original is for your
records.
According to our records, the following payments have
been made GE by the Commission. The dates shown are our
dates of approval:
Payment
1
- June
29,
1971 -
$679,260.60
Payment
2
- July
12,
1971
- 343,131.30
Payment
3
- Oct.
5,
1971 -
722,834.10
Payment
4
- Nov.
1,
1971 -
338,337.00
Payment
5
- Dec.
16,
1971 -
101,500.00
Payment
6
- Jan.
3,
1972 -
67,670.00
Payment
7
- Apr.
11,
1972 -
169,175.00
Total Payment to Date: $2,421,908.00
Therefore, the contract balance due GE is:
nri(Iir)nl ('()lZlr,l('1 1'1 - i(r - %,(,')1,000.00
I',tynlcllL:� LO 2,421,90R.00
Contract Balance $ 269,092.00
Mr. H. Steve Wacker
February 24, 1975
i
Page 2
The balance due GE, based upon the February 20 agreement
is.
Contract balance $269,092.00
Less missing capacity charge - 93,405.00
Plus repairs for turbine 87,200.00
Total due GE $262,887.00
We recommend that the Commission make final acceptance
and payment in the last above amount.
REP /ck
cc: Mr. Bob Wise
GE - Mpls.
very truly yours,
ASSOCIATED CONSULTANTS, INC.
Robert E. Palmquist
GENERAk�Wi r 14 1 C
GENERAL ELECTRIC COMPANY . . . . . . . . 1500 LILAC DRIVE SOUTH
MINNEAPOLIS, MINNESOTA 55416, Phone (612) 544 -6699
February 21, 1975
RE: HUTCHINSON STAG UNIT
Hutchinson Utilities Conrdssion
22 North Main Street
Hutchinson, Minnesota 55350
Gentlemen:
POWER GENERATION
SALES DIVISION
This will confirm the agreements we reached in your offices on February 20,
1975 relative to final settlement of our contract for the STAG Power Plant
and the gas turbine repairs completed on February 15, 1975.
The following agreements were reached:
"As- Built" drawings will be forwarded to Hutchinson Utilities
Commission.
Hutchinson Utilities Invoice 71, covering Complaint Labor, and
Invoice 464, covering Boiler Feed Pump parts, will be paid by
General Electric.
General Electric will accept the return of the new Vibration
Detector and Vibration Driver cards for the SPEEDTRONIC Control
system and cancel General Electric Invoices 061 -66736 and 061-
70825.
The issue of the missing plant capacity, as described in Associated
Consultants letter of December 4, 1973 to General Electric, was
resolved on the basis of 479 kW at $195AW or a reduction in the
final contract payment of $93,405. The final contract payment is
now due and payable.
The following will remain under warranty through February 20, 1976:
1. SPEEDTRONIC Temperature Control Circuits and SPEEDTRONIC Speed
Control Circuits
2. Economizer Recirculating Pump
3. Load Gear and High Speed Coupling
4. Boiler Recirculating Pumps Seals and problems deriving from seals
5. Steam Supply Regulator for steam to Steam Seal Regulator (Mason
Nielan)
J GENERAL 0, ELECTRIC
Page Two
February 21, 1975
6. Pressure Reducing Valve for feed water supply to spray chamber
7. Steam Control Valves
8. Interconnecting Wiring to thermocouples
9. Hot Well Level Control
10. Steam Drum Level Control
11. Boiler Economizer Tubes
12. Motor Control Center Buss repair (punch list repair)
13. Demineralizer -- limited to automatic control. Does not in-
clude failure of tank or fittings, etc.
- 14. Bearings on the Boiler Feed Pure.
General Electric will furnish parts, services of the GE Service
Shop and field engineering services associated with the recent
repairs of the gas turbine for total price of $87,200. The in-
voices presently outstanding will be cancelled and a new invoice
for $87,200 will be issued. The new parts that were supplied
will be under the standard General Electric warranty through
February 20, 1976.
The Hutchinson Utilities Commission accepted the STAG Power Plant
effective February 21, 1975 and the General Electric contractual
obligations have been satisfied, subject to the above agreements.
Please signify your concurrence of the above agreements by returning one (1)
signed copy of this letter.
Very truly yours,
GENERAL ELECTRIC COMP
By
MANAGER- DISl'RICT SALES
Date February 21, 1975
HU'ICHINSON LIT COMMISSION
By
Date
Cc: Associated Consultants, Inc.
Meeting adjourned at 5:10 P.M.
in on Tracy, Secretary
H. P. Quade, President
Special Meeting
February 20, 1973
All Commissioners were present; also Manager Wacker, Counsel
Gilmer, Don Swanson and Robert Palmquist from Associated
Consultants, Cliff Knox, Bob Wise, Fran Salsburg, Chuck Nelson,
Bob ApJones, Dick Chiefer and Bob Knorr of General Electric
Company.
Meeting was called to order by President Quade at 2:30 P.M.
The purpose of the meeting was called to resolve various
items concerning the General Electric Stag Unit recent
breakdown, and to discuss final settlement on the General
Electric Contract.
Motion was made by Commissioner Tracy, seconded by Commissioner
Filk and carried to pay $262,915.00 as per letter from
Associated Consultants dated February 24, 1975• (attached)
There being no further business, the meeting was adjourned
at 6:43 P.M.
ATTE 3f —ter
H. P. Quade, President
I
Clinton Tracy,'Secretary
49'