05-31-1950 HUCM132
(1,10)
Motion was made and unanimously carried to accept the bid of
Swanson Motor Company.
There beiriF no further business the meetin[- adjourned.
rc-'Uj, &&
R. W. Dahl, Secretary.
ATTEST:
R . I. Sheppard , Pre id ent .
SPECIAL P.FI:TIYr' OF TILE LI'''IIT AND
POV,'ER C CPr:I ISSIC. OF THE CITY OF
?rU` Ci' IP'S ON IIELD AT T17E 0:�1;,IC E OF
DR . R. I. SITE Pi"-.' D OT: 1-1AY 31,
1950 at 7:45 P. hi.
A special meeting° of the LiEht and Power Commission of
the City of Hutchinson was called for May 31, 1950 at 7;45 P. M.
at the office of the President, Dr. R. I. Sheppard. All members
of the Commission were present and participated in the meeting.
The President reported that the I +cLeod Cooperative
Power Association had submitted a form of contract for the furnish-
ing of electric ener €.y to McLeod Cooperative Power Association in
a certain restricted area detailed in the proposed contract, and
that the contract was based on the rate schedule adopted by the
Commission at its meeting, on April 22, 1950. The President
further reported that the contract had been considered by the
attorneys for the Commission, that it had been re -drawn several
times to conform to the understandinC, of the parties, and that in
its present fore: the contract was satisfactory to McLeod
Cooperative Power Association.
The contract, in the form submitted, was ordered spread
on the minutes of this meetin,°, and reads as follows;
RL'A CONTRACT
TIIIS A(TREFi =:ET;T, made and entered into this 31st day of May,
1950, by and between the Li,c-ht and Power Commission of the City
of Hutchinson, Minnesota, a municipal corporation arency, first
party, hereinafter call.e a t2 e "Producer ", and MIcLeod Cooperative
Power Association, a cooperative corporation or-anized and existin'-;
under, and by virtue of, the Laws of the State of I,1innesota , second
party, hereinafter calle ? the "Consumer'.
WITNESSE'TH THAT,
WHEREAS, the Producer is an aEency of a municipal corporation,
enraged in - eneratinE electric enemy; that Producer has a present
Feneratin� capacity of 6570 11, which said capacit Producer shall
123
(111•)
maintain for the term of this agreement; and that based upon present
and anticipated future demands, for energy, from the persons supplied
within the City of Hutchinson, and based upon a productive capacity of
said plant, the Producer will have available, durinE, the term of this
agreement, ant excess of electric ener -_.y over its local requirements,
in the amount of 2200 KW, which said excess of ener €y Producer desires
to sell, and,
WHEREAS the Consumer is a cooperative under the Rural Electrif-
ication -Act, engaE-ed in the distribution of electric enemy to its
members in a rural area around and near the said City of Hutchinson,
and which desires to purchase energy for such distribution from the
Producer,
NOW TFlERE1 ORE, In consideration of the premises and of the
mutual covenants and acreements herein contained, the parties hereto
contract and agree with each other as follows;
1. BASIS - That this contract and agreement is made and
entered into between the parties based on the existing, production
capacity of the producer at its Municipal Electric Plant in the
City of Hutchinson, Mi ,.nesota, a rd i4 ich Plant has a total capacity
as of the date hereof in the amount of 6570 IM. Producer shall not be
required to increase the capacity of its plant, but Producer shall
be required to maintain present plant capacity.
2. RE�UI'ZE,:FY 3 Producer a.,rees to sell and deliver to
Consumer and Consumer aL,rees to purchase and take from Producer,
all the electric enerr;y required bar Consumer and its members, to
the amount of 2,200 kilowatts maximum demand, in the area served
by that portion of Consumerts electric distribution system, lyinE-
within the following boundary;
BeEinninf- at the North. Quarter corner of Section 1, Town-
ship 117, Range 28; thence South to the South Quarter corner of
Section 25, Township 117, RanE-e 28; thence East to the North-
east corner of Section 36, Township 117, Range 28; thence South
to the Southeast corner of said-Section 36; thence '.Nest on the
South line of said Section 36, three - fourths mile; thence South
to the South line of Section 1, Township 116, Range 26; thence
Southeast to the center of Section 12, Township 116, Range 28;
, thence Southwest to a point one - fourth male east of the South-
west corner of said Section 12; thence South to the North line
of Section 24, Township 116, Range 28; thence 'Nest one -half mile
to a point one - fourth mile west of the Northeast corner of
Section 23, Township 116, Ran € -e 28; thence South to the East-
'Nest quarter line of Section 35, Township 116, Ran,--e 28; thence
East to the center of Section 36, Township 116, Rage 28; thence
South to the center of Section 24, Township 115, Range 28;
thence Southwesterly to the center of the North Line of Section
26, Township 115, Range 28; thence South to the center of Sec-
tion 35, Township 115, Range 28; thence West to the center of
Section 31, Tornship 115, Range 28; thence South to the Center
of the South line of Section 31, Township 115, Range 28; thence
Northwesterly to the Northwest corner of Section 33, Township
115, RanE:e 29, thence West along. Truck Highvaay 212 to a point
on said Hi ghway one - fourth mile east of the West line of Section
124
( 112 )
25, Township 115, Range 32; thence Northeasterly to the North
,:quarter corner of Section 24, Township 115, Range 32; thence
Tdorth to the center of Section 12, Township 115, Range 32;
thence East to the Easterly Quarter corner of Section 70 Town-
ship 116, Range 31; thence North one mile to the West Quarter
corner of Section 5, Township 116, Ran7,e 31; thence East to the
center of Section 6, Township 116, Ranf,e 30; thence North 61
miles to the McLeod County Line; and thence Easterly to the point
of beginning,
all sub Jett to the conditions and limitations hereafter set forth..
3. VAR- TkTIO^', Or TFRRITOPY; It is agreed that the t@rritory
described above may hereafter be varied from time to time at the
request of either party and with the consent of the other, all in
order to provide for the most efficient operation of the facilities of
both parties hereto.
4. SER7TICE; The electric energy to be supplied by Producer
hereunder shall be what is corrmonlIT known as alternating current
of approximately 60 cycles per second, three phase, and shall be
delivered in the first instance to Consumer's substation, as now
locate] in the City of Hutchinson, Minnesota, at approximately
2,400 volts.
5. DELIVERY; (a) Producer agrees to deliver said electric
energy in the first instance at Consumer's present substation
in the City of Hutchinson, Minnesota, by means of two 2400 volt,
750,000 cm. primary circuits leadinF.� from Producer's switchboard
buss to primary -side of Consumer's v-- ststion.Said circuits to be
protected by all necessary oil switches, protective overload
relays and necessary appurtenances, all of which devices and circuits
shall be provided, maintained and owned by Producer.
(b) Producer agrees to deliver said electric
energy in the second instance at two points to Consumer's distribution
system, at approximately the Southwest corner of Section 6, in
Township 116, Range 29, west of the 5th P. M. and approximately the
Southwest corner of Section 32, Township 117, Rance 29, west of
the 5th P. M., by means of two four -wire, three -phase 7,200/12,500
y transmission lines leadin€ from the secondary side of Consumer's
said substation and thence to the two existing connections with
the Consumer's distribution system mentioned last above. Said two
transmission circuits to be provided, maintaned and owned by
Producer.
(c) That all of said circuits provided by Producer,
as above, shall be maintaineA by Producer at its sole expense and
shall be maintained free of all Cround and tree contacts and in such
manner so as to give Consumer e�'ficient and uninterrupted service,
exceptinT only interruptions due to causes beyound Producer's control.
Producer shall immediately repair any faults or breaks in any of
these circuits, as such faults or breaks occur.
125
( 113 )
(d) Producer covenants and at-rees to hold and save
Consumer harmless from any and all claims for d amat.°es, of every sort
whatsoever, resultinE, from the presence of said electrical energy
on any of said four circuits described in this section, excepting,
only where such loss or damage shall be established to have been
occasioned by ne €°licence of Consumer or its a_ents or employees.
6. SUBSTkTTON; Consumer shall own and maintain the necessary
substation, to -ether with switchinE and protective equip=ment which may
be reasonably necessary to enable Consumer to take and use the enr €y here -
under and to protect the facilities of Producer. Producer shall own
and maintain the necessary meters and metering equipment, which shall
be located at the switchboard of Producer in its generating plant.
Demand Charge; $1.25 per Kilowatt of "3illing
Demand" per month.
Enerf °y Cha.rr;e; $.0076 per Kilowatt hour.
Delayed Payment Pro7, ision, A chart-e of 5% will
be added to the bill at the rate
sche:3ule above, which shall
constitute a discount for pay-
ment of bill within period re-
quired under para� -raph 10 hereof.
8. DETER'7TNATIO14 OF BILhIIvr DEI,D4I1'D; The "Billing; Demand"
shall be the maximum d emand for the current month. The maximum
demand in kilowatts shall be determined as the hi`hest average
rate at wraith energy is used f_ or any period of f if teen consecutive
minutes durin[: the month.
9. F,,TEL CLAT73L; The within contract price shall be based
on fuel oil satisfactory to the Producer delivered in the Producer's
storage tanks at a cost of not less than w5.00, nor more than X6.00
per 100 gallons. ST ould the cost of such fuel rise above $6.00 per
100 gallons or decline to below ;?5.00 per 100 - allons, as an avera`-e
for an), billing period, then the price per kilowatt -hour shall be
adjusted in accordance with such rise or decline by 1/110th of one
mill ($.0001) for each twenty -five cents (25�) rise above 16.00 per
100 �- ;allons or decline below $5.00 per 100 gallons.
10. PAYIYEPTT OF ;?ILLS; Meters shall be read by a representative
of Producer at noon on the fifteenth day of each. calendar month.
Bills for energy .furnished hereunder shall be rendered by Producer
to Consumer, monthly, and shall be payable at the office of Producer
in Hutchinson, Minnesota, or such other place as Producer may
designate in writing,, on or before the last business day of the month
during which said energy is .furnished.
11. 1X1E LER ADJUST!,al TI TS: Each meter used in determininEr the
demand for, or amount of electric ene.rE -y supplied hereunder, shall,
by comparison with accurate standards, be tested and calibrated by
Producer at intervals of not to exceed twelve months. If a meter
shall be found inaccurate, it shall be restored to an accurate
condition or a new meter or a new meter substituted.
12Fj
(114 )
Consumer shall have the r iF-ht to request that a special meter
test be made at any time. If any test made at Consumer's request
diselcEes that the meter tested is registerin- within 2% of normal,
Consumer shall bear the expense of such test. The expense of all
other tests shall be borne by Producer. The results of all such
tests and calibrations shall be open to examination by Consumer
and a report of every test shall be furnished immediately to Consumer.
Any meter tested and found to be not more than 20 above or below
normal shall be considered to be accurate. If, as a result of any
test, any meter is found to re-ister in excess of 2%, either above
or below normal, then the readini -s of such meter previously taken
for billing purposes�shall be corrected according to the percentage
of inaccuracy so found, but no such correction shall extend beyond
ninety days previous to the day on which inaccuracy is discovered by
such test.
For any period that a meter has failed to ret °ister either
the deirard established or the amount of electric energy delivered,
the bill shall be based on a previous period of operation selected
by the pasties hereto and adjusted to reflect any changes in
operating conditions.
12. RIq:T OF ACCESS;• The parties hereto will give the
authorized aE-ents of one another the right to enter upon the
premises of each at all reasonable times, for the purpose of
readinc, or checkinL meters, for constructing, testing_, repair -
ing, renewing or exchanging any or all of its equipment which may
be located on the property of the other, or performing any other
work incident to rendering the service hereby contracted for.
13. C0 TIN7JITY OF SE'�''ICE; In the event that Producer is
prevented from delivering or Consumer is prevented from receiving
the electric energy herein contracted for, in whole or in part,
by any cause beyond its control, including, without limiting the
generality of the forec °oink°, injunction, strike, riot, invasion,
fire, flood, explosion, break -down, Act of God, or the public
enemy, or for the purpose of making repairs, neither party hereto
shall be liable to the other by reason thereof/except to the extent
of a reduction in the demand charge as provided for in this agreement
in the ratio that the period covered by the interruption bears to
the period of one month, it being the intention of each party to
relieve the other of the oblir--ation to supply energy or to receive
and pay for energy when, as a result of any of such causes, either
party may be unable to deliver or use, in whole or in part, the
electric energy herein contracted to be delivered or received.
Both parties shall be prompt and diliz Ent in removinc- and overcoming
the cause or causes of any interruption: but nothing herein con -
taine:j shall be construed as permittini- Producer to refuse to
deliver, or Consumer to refuse to receive, electric energy after
the cause of interruption has been removed.
Producer reserves the right to disconnect service in the
event service to Consumer results in unreasonable trouble on
Producer's system such as interruptions, (_rounds, radio or
telephone interference, unreasonable surpjes, or objectionable
voltage fluctuations, where such trouble is caused by negligence
1
1
127
( 115 )
of consumer if, after f;ivinf- at least fifteen days' notice in writing
to Consumer of such trouble, Consumer fails to remedy the causes
thereof within a reasonable time.
Producer does not guarantee that the supply of electric energy
hereunder will be free from interruption, and it is aE�reed that
interruption of Producer's service, occasioned by any of the causes
mentioned in the fore €oing paraCraphs, shall not constitute -a breach
of this ag,7reement on the part of Producer, and Producer shall not be
liable to Consumer for d amaEes resultinE, therefrom. In the event of
interruption to service, Producer will restore the service and main-
tain its present, total generating- capacity as soon as it can
reasonably do so, and will at all times exert itself toward the end of
supplyin as nearly constant service as is reasonably practicable.
In case of impaired or defective sevvic e, Consumer small immediately
give notice to the office of Producer by telephone, confirming such
notice in writing within 24 hours.
Neither party shall be liable for delays not reasonably within
its control, including delays caused by inability to secure or replace
materials, or supplies necessary to perform the work contemplated
herein, nor shall any such delay be deemed a breach of any oblication
hereunder.
14. LIABILITY; The electric energy furnished under this
ag :reement is supplied upon the express condition that during the
time it is present in the substation of Consumer and after it passes
the designated secondary point of delivery, as set forth in paragraph
5 above, it becomes the property of Consumer, and Producer shall not
be liable for loss or dama,-e to any person or property whatsoever,
resulting directly or indirectly from the use, misuse, or presence
of said electric ener[_-,y on Consumer's premises or facilities, except
where such loss or damac -e shall be shown to have been occasioned by
negligence of Producer, its agents or employees.
15. LIMITATIONS: In consideration of the rate herein contained
and of the provisions of this agreement, it is understood and agreed
that the electric energy supplied hereunder shall be used only by
Consumer and its members as ultimate consumers, and that no part
thereof shall be resold at wholesale, or used by Consumer directly
or indirectly as auxiliary or breakdown service to any other source
of power supply.
lo. DISC014TINIJANCE OF SERVICE: If either party violates any
of the material terms of this agreement, the other party may dis-
continue performance of this agreement upon its part, provided at
least fifteen days' written notice has been given of intention to
discontinue hereunder and unless the other party shall correct such
violation before the expiration of said fifteen days' notice. Failure
to make necessary correction by defaulting party shall not relieve
the defauling party of any of its oblications hereunder, or for any
claim for damges to the other party.
128
( 116 )
Consumer reserves the right to purchase electric energy elsewhere
if Producer fails to furnish all the electrical energy required by
Consumer hereunder for any consecutive fifteen -day period. In the
event of exercise of this right by Consumer, Consumer shall have a
right and option of terminating; this contract, subject to any claim
for d amaE-es that Consumer may have against Producer by reason of
Producerls failure to .furnish energy hereunder, or for breach of this
agreement.
17. TERM OF AGREEDFNT: This agreement shall be in force for a
period of five years commencing; on September 2, 1950, provided it is
executed by the parties hereto and approved by the Administrator of
Rural Electrical Administration within a reasonable time hereafter.
This agreement is also subject to approval of any regulatory body
having jurisdiction hereof. At the expiration of the five !year term
of this agreement, this agreement shall continue in full force and
effect from year to year thereafter, unless prior to the expiration
of said five -,year term either party gives to the other a written notice
of its intention to terminate this contract at the end of said five -
year period, which said written notice of termination must be given
at least one year prior to the expiration of the agreement. After the
termination of said five -,year period, either party hereto may cancel
this agreement by giving to the other a written notice that,this agree-
ment shall terminate one year from the date of delivery of said written
notice.
18. TERIViTNATION OF PRIOR AGREEP,FNTS•, It is mutually agreed that,
on the effective date hereof, this agreement terminates any and all
prior agreements covering the service furnished hereunder and any under -
standing.s, liabilities and undertakin €;s of each party unto the other
arising; therefrom, excepting, only unpaid bills for electric service
owing by Consumer to Producer.
IN 1,1VITNESS 1,71fl-ILEOF, the respective parties hereto have caused
this agreement to to executed in triplicate by their proper officers
therunto duly authorized, and their respective seals to be hereunto
affixed, and the same shall be egaally binding upon the respective
parties, and each of their successors and assigns.
In Presence of;
R. E. Young
Orlou G. Luthens
R. A. Fischer
y'J,�alt er C. Juc lau s
LT'"IiT AJ'4 POs�t —, C 01,11,�ISSION OF THE
CITE: OF JIU70 IMON, A MUNICIPAL
CORPORATION AGENCY
BY: R. I. Sheppard.
President
BY: R. W. Dahl _
Secretary
McLEOD COOPERk= -E P0� "IER AS50C IATI0
BY: Lynn Wl-ilkan
President
BY: Ed Boyle _ _
Secretary
U
129
(117)
Member Dahl moved that the Light and Power Commission of the
City of nutchinson execute the fore €,oink, contract, and which contract
is subject to approval by the Rural Electrification Administration,
'VashinL'ton, D. C. as to the A,cLeod Cooperative Power Association, and
that the President and Secretary be authorized to sign said contract
on behalf of this Commission. Member Thompson seconded the foregoing
motion, and upon vote being ta'_cen all members voted in favor of the
motion and no member voted against the motion, and the motion was
declared unanimouslIT auopted. Supt. Ralph Yount; was instructed to
transmit the si €'ned contract to the McLeod Cooperative Power
Association, with instructions that upon approval by the REA,
9Vashington, D. C., a signed duplicate ori�_inal be returned to this
Commission for its files and records.
There being, no further business the meetinC adjourned.
c:
R. 'N. Dahl, Secretary.
f`
ATTEST; _ A
I. Sheppard, President.
Juno _,, 1950.
Yonthly Meet ink; .
l ,e ret,_ l.ar monthl,, meet .n- of the LI(-ht and Power
Co.rsr.ission was held at R. I. Sheppard +s office at 7;30 P. m. on
June 5, 1950.
All C ommiS, :_ions were prFS e t , also Supt. Yount..
The minutes of t?lle Last moiithly meetiriC' and special meetinE °s
were read and ap_provcd.
Motion was made and seconjed to issue a check to Dr.
`Nrbitzky in the amount of 0 "'50.00 in part payment of his underground
system.
motion vss ma:it1 a.,::d seconded to order (one to five) inserts
to be maJe for the Macintosh- Seymour enCines.
T;.otion was made and 'seconde.:' to order extra distri' "Jtion
irven,tory materials now Ji.)e tr, an expected incre <ase in materi.a.l costs.
Yotion was also made and seconded to incroese t'Ic mart. -,ly
w�a -•e o� t',e '_'oll�v�in, erpl��;, =ees:
Ross 1-1-e-.112-nn
r� ` • 00 Elmer White ;10.00
•15.(70 l . JunCblut 10. 00
X15 .00 n . Youn[; X15.00
10.00 R. Betker 10.00
10.00 D. Klin�er 5.00
5.00 ; . Da',ar sl 5 . nn
x,10.00 R. Schulte w 5 .00
Leif Lars on
F. Ahrens
R. Hakel
S elI ,Ilt z
D. 'iiese1oh
r� ` • 00 Elmer White ;10.00
•15.(70 l . JunCblut 10. 00
X15 .00 n . Youn[; X15.00
10.00 R. Betker 10.00
10.00 D. Klin�er 5.00
5.00 ; . Da',ar sl 5 . nn
x,10.00 R. Schulte w 5 .00