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07-02-1981 HUCMRegular Meeting (June) July 2, 1981 All Commissioners were present, also present were Mgr. Alexander, Ruth Hakel, Counsel Peterson, "Butch" Wentworth, Dave Schmidt and Martin Kane of Associated Consultants, Louis Dammann, Gail E. Schatz and Jim McClure. The meeting was called to order at 2:00 p.m. by President Filk. The first item of business was to open bids for construction of a switchgear building. President Filk instructed the Secretary to open the bids, Counsel Peterson to evaluate the bid bond and Dave Schmidt to read the bids. The bids were as follows: A motion was made by Commissioner Tracy, seconded by Commissioner Daggett to accept the minutes of the Special Meeting of June 8, 1981 as presented in their printed form. The motion was carried. A motion was made by Commissioner Tracy, seconded by Commissioner Daggett to accept the gas and electric divisions payable bills for May as presented. The motion was carried. President Filk commented on financial report and it was briefly discussed by the Commission. Inquiries were made of Mgr. Alexander concerning the inventory of fuel oil. It was decided that an in depth evaluation of the financial report should come at the end of the six month period. President Filk suggested that a rate change may be necessary by October 1, 1981. Schatz Construction $37,220.00 Addendum X61 less $1,055.00 for a steel roof Dammann Construction $37,260.00 Addendum #1 less $500.00 for a steel roof Miller, Miller & Mac $34,900.00 Addendum #1 plus $79.00 for a steel roof Dave Schmidt, Martin Kane and "Butch" Wentworth were instructed to evaluate the bids and report to the Commission. The minutes were then considered. A motion was made by Commissioner Daggett, seconded by Commissioner Tracy to accept the minutes of the May 26, 1981 Regular Meeting in their printed form as corrected. The corrections are as follows: In the sentence reading - Mgr. Alexander reported that Home Insurance Company was seeking a settlement on repairs made on units 4 and 7, 4 and 7 should be deleted and #8 substituted. In the sentence reading - President Filk instructed Mgr. Alexander and Counsel Peterson to compose a letter requesting a settlement as of this date, requesting should be deleted and regarding substituted. The motion was carried. A motion was made by Commissioner Tracy, seconded by Commissioner Daggett to accept the minutes of the Special Meeting of June 8, 1981 as presented in their printed form. The motion was carried. A motion was made by Commissioner Tracy, seconded by Commissioner Daggett to accept the gas and electric divisions payable bills for May as presented. The motion was carried. President Filk commented on financial report and it was briefly discussed by the Commission. Inquiries were made of Mgr. Alexander concerning the inventory of fuel oil. It was decided that an in depth evaluation of the financial report should come at the end of the six month period. President Filk suggested that a rate change may be necessary by October 1, 1981. Dave Schmidt reported to the Commission that the bids had been evaluated and that he recommended the low bidder - Miller, Miller & Mac of Hutchinson, Minnesota, be awarded the contract to build a switchgear building for the amount of $34,900 in conformance with the base bid which included a cement roof. A motion was made by Commissioner Daggett, seconded by Commissioner Tracy to accept the bid of Miller, Miller & Mac to construct a switchgear building with a cement roof for the amount of $34,900. The motion was carried. Mayor Westlund made his appearance at the Commission meeting having made previous arrangements. He spoke briefly about the growth of Hutchinson and stated that representatives from four different industries had recently inquired about available land. He then cited a particular firm that was contemplating a large warehouse, needing rail facilities, considering property adjacent to property owned by Hutchinson Utilities. He suggested that the Utilities should allow approximately four acres of their property to be added to the adjacent property to make a suitable tract for the venture. President Filk then reviewed the policy of the Commission citing that the property was purchased some years ago with room for expansion and that indeed considerable expansion was already evident. Commissioner Tracy concurred with President Filk's remarks. Commissioner Daggett remained neutral since the adjacent property belongs to him. Much more discussion was held and the Commission urged the Mayor to seek other avenues for acquiring land, suggesting that they may help in the purchase of such land. The Mayor departed asking that the Commission should not close the door on his request. He also stated that a council - Commission meeting should be held in the near future. In conjunction with a Minnesota Municipal Utilities Association effort to get an overall insurance program for its members, Hugh Wagner and Sharon George of the National Security Insurance Underwriters appeared as stand -ins for Bob Weida with their latest offering. Mgr. Alexander, being on the Insurance Task Force, expressed disappointment as to coverage and premium costs compared to our existing policy. After some discussion it was decided to have Bob Weida come in at the July Regular Meeting to further orient the Commission on the plan. Mgr. Alexander reported on the following items: 1. Unit #8 running well. Oil pressure lower than it had been but still within the allowable limits. That Home Insurance Company had been notified of the completion of repairs and we were ready for a final settlement. 2. The hydro power project at St. Cloud is very much alive with St. Cloud apparently very interested in selling the Hutchinson Utilities power. 3. The need for a policy concerning areas where outmoded old overhead should be replaced with underground service. Questions concerning whether or not there should be a charge and how far does the Utility take the service were discussed. Also coordinated efforts with the Telephone Company were talked about. The Commission requested more input from staff and will discuss it at the next meeting. 4. Reported that the Fire Department would like the high voltage lines in the area of the new fire barn to go underground. Since this is a costly project the City has suggested it would pay for material and the Utility would furnish labor. The Commission gave Mgr. Alexander permission to work with the City and the Fire Department to install underground. 5. Representatives of Hutchinson Industrial will be in attendance at the August 31 meeting to discuss their rates. 6. That contacts with United Power and Northern States Power were being made concerning present and future ties. Also that Don Swanson of Associated Consultants, who is a member of a task force studying power distribution, indicated that a tie with Northern States Power would be recommended. 7. Due to a complaint by Lynn's Auto Sales on damage to paint on cars because of vapor drift from the cooling towers, the amount of chemicals used, wind direction and velocity were being checked. Mgr. Alexander was instructed to follow up the complaint. Counsel Peterson discussed the Curtiss-Wright case and recommended a meeting with Counsel Zelle and Hofman relative to settlement if it were offered by Curtiss - Wright. He was instructed to set up a special meeting as soon as possible. Counsel Peterson then reported on the dismissal of Doherty, Rumble and Butler as legal representative in the Home Insurance litigation. He proposed that we should seek the service of Counsel Zelle and Hofman if we wished to continue the litigation. The matter of fees presented by Doherty, Rumble and Butler were discussed with no action taken at this time. Mgr. Alexander requested a salary increase for Curt Dahl, the Utility Purchasing Agent. After discussion it was agreed that the salary should be set at $19,500 per year effective July 1, 1981. A motion was made by Commissioner Tracy, seconded by Commissioner Daggett to establish the salary of the purchasing agent at $19,500 per year effective July 1, 1981. The motion was carried. The following are May payab les: 1 May Payables - Electric Peterson Wisdorf Hutchinson Oil Company H & C Electric Electrical Materials Crane Packing Company Border States Supply W E S C 0 Pauline Bipes Computerworld Colonial Life & Accident Graybar Electric Hutch Utilities - UB Natural Gas Division Northwestern National Bank Chas. Olson & Sons Inc. Richard Peterson Petty Cash Marge Schiro Continental Assurance Co. Continental Assurance Co. Citizens Bank & Trust State Treasurer Central Petroleum Co. William Breitkreutz Quadna Mountain Resort Petty Cash Bessie Dickinson Estate Hutch Cold Storage Border States Supply Mrs. Fred Briggs City of Hutchinson Fresco General Electric Company Grayb ar Electric H & C Electric I. B. M. Corporation Peterson - Wisdorf United Electric Corp. Beverly Krueger Postmaster John Van Wassenhoven Percy Saue Bruce Rannow Duane Luke Gerald Kujas Richard Koeppen William Juaire Jay Hamilton Dwight Clark William Bethke Border States Supply Distribution inventory 359.60 Lube oil inventory 5,835.77 Plant supplies 59.40 Distribution inventory 445.00 Engine inventory #8 887.94 Distribution inventory 342.90 Plant supplies, distribution 96.04 inventory Meter reading 290.00 Subscription 36.00 Accident insurance withheld 53.50 Plant supplies 10.99 Employees utility bills w/h 835.00 Due to Gas - Accounts 486,583.43 Receivable for April Interest on Revenue Bonds 93,040.50 Truck main. 69.06 Legal retainer 400.00 Meter refunds & interest 581.40 Meter reading 290.00 Life insurance 203.33 Life insurance 49.00 Federal tax withheld 5,039.54 PERA withheld & expense 3,753.87 Motor oil 671.27 Roof repair 500.00 Meeting expense 100.00 Postage 622.20 Meter refund & interest 8.25 Correction on billing 11,729.36 Distribution inventory, mdse., 1,420.44 Plant supplies Rent 20.00 Overpayment on utility bill 33.44 Tools 273.32 Maint. #8 30.00 Misc. expense 189.55 Distribution inventory, mdse. 1,010.43 Maint. charge 760.50 Distribution inventory 74.30 Misc. expense - Plant 4.82 Data entry 100.00 Postage 193.70 Meter refund & interest 42.40 21.20 21.20 22.50 44.80 21.20 42.40 42.60 42.60 21.20 Distribution inventory 2,418.36 Anderson Chemical Co. H & C Electric General Electric Supply Four Seasons Services Ideal Shoe Shop Flo- Systems Company Ed Davis Business Machines Kemske Paper Company McMaster -Carr Supply Miller Sales Company Fluid Mechanics Crane Packing Company Power Process Equip. Cooper Energy Services Sterling Electric General Electric Company Eugene Daggett Burmeister Electric P.S.E. - MACH -7 Hutch Jaycee Water Carn. Associated Consultants Joan Limvere State Treasurer - Social Security Contribution Chemical inventory Mdse. Mdse., maint. unit #8 Cup inserts Misc. repair Engine inventory #8 Office supplies Office supplies Plant supplies Plant supplies Engine inventory #1 Engine inventory #8 Maint. engine #8 Maint. engine #7 Distribution inventory, mdse. Partial payment Meeting expense - Chicago Wire - Loop Line Crime deterrent system Float sponsorship Engineering fees Meeting expense - St. Cloud FICA withheld & expense C & J Machine Maint. engine #3 Commissioner of Revenue State tax withheld New York Life Insurance Medical insurance State Treasurer PERA withheld & expense Citizens Bank & Trust Federal tax withheld Hutch Utilities Collection expense Burmeister Electric Wire - Loop Line W E S C 0 Distribution inventory Peterson - Wisdorf Distribution inventory North Supply Company Distribution inventory H & C Electric Distribution inventory Graybar Electric Distribution inventory, supplies General Electric Supply Meter inventory, mdse. General Electric Company Engine inventory #8 Electrical Materials Distribution inventory Cooper Energy Services Engine inventory #7 Border States Supply Distribution inventory, Albrecht Oil Company Gasoline Allen Office Products Office supplies American Linen Supply Laundry American Welding Supplies Plant supplies Amoco Oil Company Gas Anderson Chemical Co. Chemical inventory Anderson - Waalen Interiors New meter room Apollo Piping Supply Misc. supplies Cen. Minn. Communications Radio repair Commissioner of Revenue Sales tax Culligan Water Conditioning Misc. supply Dostal & Oleson Oil Co. Maint. engine #8 Fabricare Cleaners Laundry plant mdse. 4,094.83 130.34 152.81 33.40 2.50 279.30 19.95 52.43 17.90 92.97 622.90 54.46 127.09 131.77 76.45 150,000.00 236.70 8,675.67 835.00 250.00 3,663.63 26.00 6,619.84 100.00 3,903.93 7,610.00 3,633.76 4,984.68 249.78 66,702.97 183.16 488.85 45.81 1,584.50 8,378.40 2,960.88 505.70 944.49 40.97 2,835.09 133.72 59.50 78.34 83.88 21.36 100.88 483.35 43.80 109.00 11,523.60 48.60 25.00 291.00 1 I Family Rexall Drug Office supplies 104.42 G. T. C. Auto Parts Misc. expense 167.50 Gamble Store Fan motor 124.81 Goodway Tools Corp. Tool - tube cleaner 1,301.99 Heikes Hardware Hank Plant supplies 1.07 Home Bakery Rolls 354.60 Hutchinson Co -op Plant supplies 15.00 Hutchinson Mfg. & Sales Maint. engine #8 30.65 Hutchinson Telephone Co. Telephone 889.60 Hutch Util Employee Fund Employee fund withheld 117.00 Hutch Util - utility bills 187,707.83 Natural Gas Purchased 183,795.84 Interdepartmental Labor 1,140.96 Legal Fees - billed from Natural Gas Div. 2,027.17 Electric & Gas Usage - Plant & Center 743.86 Hutch Wholesale Maint. engine # 1, 2, 3, 7, 8 120.73 Misc. I B E W Local 949 Union dues withheld 460.76 Jahnke's Red Owl Coffee 144.30 Junker Sanitation Refuse Charge 76.00 Juul Contracting Marking paint 148.89 Leef Bros., Inc. Laundry 152.73 Mankato Business Products Office supplies 42.23 W.P. & R.S. Mars Co. Misc. supplies - Plant 31.38 Murphy Rigging Maint. engine #3 178.50 National Safety Council Misc. expense 171.46 Nott Company Maint. engine #8 31.88 Oakite Products Plant supplies 115.80 Paper Service Company Plant supplies 95.55 Plaza OK Hardware Plant supplies, truck maint. 36.74 Power Supply Co. Plant supplies, misc. supplies 572.31 Price Electric Mdse. 24.34 River Warren Aggregates Limestone - Grounds 341.49 Rockite Silo Maint. engine #7 39.20 Simonson Lumber New meter room 183.89 Sorenson Farm Supply Misc. shop expense 7.39 Vaughn's Flag 104.00 Welders Supply Company Plant supplies 191.38 Wigen Chevrolet Truck maint. 75.00 Williams Steel & Hardware Maint. engine #3, fuel oil 94.78 system Zee Medical Service First Aid Supplies 372.67 Zep Mfg. Company Plant supplies 36.00 General Trading Company Plant supplies, misc., mdse. 231.04 Brad Burich Mowing lawn 74.00 Petty Cash Office supplies, postage, gas 158.17 Petty Cash Meter refunds & interest 107.67 Cen. Minn. Communications Truck radio repair 81.96 Coast to Coast Plant supplies, misc. 34.09 distribution Ericksons Gas 20.80 Millerbernd Mdse; 1.80 Schramm Implement Maint. trencher 10.00 Sterling Electric Distribution inventory, meter 151.02 expense United Power Association Purchased Power Wally's Tire Center Truck Maint. May Payab les - Gas First State Federal Hutch Iron & Metal Hutch Util Employee Fund Hutch Util - utility bills Chas. Olson & Sons American Meter Division Fisher Controls Citizens Bank & Trust State Treasurer Swanke Motors Colonial Life & Accident First National Bank P.S.E. - MACH -7 Hutch Utilities Hutch Utilities State Treasurer - Social Security Contribution Totushek Trucking State Treasurer Citizens Bank & Trust First National Bank Hutch Utilities Albrecht Oil Company Allen Office Products American Meter Division American Welding Supplies Apollo Piping Supply Case Power & Equipment Commissioner of Revenue Farm & Home Distributing Heikes Hardware Hank Hutch Util Employee Fund Hutch Util - utility bills Hutch Wholesale I B E W Local 949 Juul Contracting L & P Supply LaHass Mfg. & Sales McLeod Co -op Power Assn. National Safety Council Northern Natural Gas Plaza OK Hardware Quast Transfer Welders Supply World Travel Deposit to Saving Misc. supplies Employee fund withheld Employee utility bills w/h Truck main. Meter inventory Regulator inventory Federal tax withheld PERA withheld & expense New truck Accident insurance withheld Deposit to Incremental Pricing Crime deterrent system Interest on Certificate of Deposit - due to Municipal Electric Plant Transfer to Electric Division FICA withheld & expense Freight PERA withheld & expense Federal tax withheld Deposit to Contribution Fund Due to Municipal Electric Plant - May expense Gasoline New file Meter inventory Misc. supplies Fittings inventory Truck maint. State tax withheld Trencher maint. Misc. expense Employees fund withheld Gas, Interdepartmental Labor Trencher maint. Union dues withheld Maint. services & mains Trencher maint. Transportation Equip. Electric usage at Border Station Misc. expense Purchased Gas Truck Maint., misc. supplies Freight Misc. expense Meeting Omaha - 0. Kuiken 145,889.78 65.30 500.00 2.00 21.00 309.00 34.53 907.00 301.56 1,183.15 794.28 6,292.15 12.00 38,033.68 835.00 3,926.67 150,000.00 1,199.54 69.73 788.49 1,166.32 20,900.00 9,900.31 135.49 675.00 1,336.54 48.36 310.95 588.86 833.83 28.13 20.66 24.00 2,729.13 20.55 76.00 148.89 30.57 597.00 30.30 85.73 1,257.39 19.97 26.32 7.00 178.00 1 n 1 Zee Medical Service Petty Cash Circle Pines Utility American Meter Division Ericksons Wally's Tire Center Circle Pines Utility Circle -Hutch Utility Great Plains Ind. Supply Cen Minn. Communications First Aid Supplies 124.23 Misc. supplies 11.97 Purchased Gas 381.67 Meter inventory 42.62 Gas 19.40 Truck maint. 57.20 Purchased Gas 690.80 Purchased Gas 352,663.31 Mains - maint. mains 205.63 Radio in truck 973.00 There being no further business, the meeting adjourned at 5:30 p.m. 1 ATTEST t� H. W. Filk, President is Clinton Tracy, Secretary