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12-23-1981 HUCMRegular Meeting December 23, 1981 All Commissioners were present, also present were Mgr. Alexander, Ruth Hakel, Ivan Larson and Don Swanson of Associated Consultants. The meeting was called to order at 1:00 p.m. by President Filk. The minutes and the payables of November were then considered. A motion was made by Commissioner Daggett, seconded by Commissioner Tracy to accept the minutes of the Regular Meeting of November 30, 1981 as presented. Motion was carried. A motion was made by Commissioner Daggett, seconded by Commissioner Tracy to accept the gas and electric divisions payable bills for November, 1981 as presented. Motion was carried. Commissioner Daggett questioned the amount being paid Associated Consultants for engineering fees. After discussion, it was the consensus of the Commission to get an estimate fee for any given service offered prior to the work being done. Ruth Hakel presented the financial report for November, 1981. Certain areas were questioned and discussed. The report was accepted as presented. Ivan Larson presented a gas and electric classification breakdown. Much discussion ensued in all areas leading to needed changes in rates. Mgr. Alexander recommended certain rate increases were needed and asked if Associated Consultants could be engaged. The Commission instructed him to proceed on the matter. Restricted Funds and Accounts were discussed in detail. As a result a motion was made by Commissioner Tracy, seconded by Commissioner Daggett to create an Incremental Pricing Fund for the gas division. Motion was carried. On a motion by Commissioner Daggett, seconded by Commissioner Tracy a Power Plant Refund Fund was created for the electric division. Motion was carried. Mgr. Alexander cited the need to lease a small tract of land to United Power Association for the installation of capacitors. A motion was made by Commissioner Daggett, seconded by Commissioner Tracy to lease a tract of land with the following description: 1 DESCRIPTION: That part of Block 20, North Half City of Hutchinson, described as follows: Commencing at the Northwest corner of said Block 20; thence South along the West line of Block 20, a distance of 144.11'; thence deflect to the left 90 degrees 00 minutes 00 seconds, a distance of 131.85'; thence deflect to the right 90 degrees 00 minutes 00 seconds, a distance of 147.5'; thence deflect to the left 71 degrees 00 minutes 00 seconds, a distance of 60.6' to the point of beginning; thence deflect to the left 90 degrees 00 minutes 00 seconds, a distance of 43.7'; thence deflect to the right 90 degrees 00 minutes 00 seconds, a distance of 31.0'; thence deflect to the right 90 degrees 00 minutes 00 seconds, a distance of 43.7'; thence deflect to the right 90 degrees 00 minutes 00 seconds, a distance of 31.0' to the point of beginning. Mgr. Alexander reported that Counsel Zelle would be out soon to take depositions concerning the Curtiss— Wright litigation. All depositions should be taken by March 31, 1982. Don Swanson of Associated Consultants presented some of the proposals in the Proposed Contract Agreement between United Power Association and Hutchinson Utilities. After much discussion the Commission agreed with the basic terms outlined and will review the entire contract when it is ready. At such time the formal action of acceptance will be considered. Don Swanson of Associated Consultants made a presentation for an additional tie to the north —south Big Swan 69KV line. He cited, among other items, that savings on participation power would amount to $120,000 and that savings on Economy Energy would be probable. The investment would be an approximate $600,000. After discussion a motion was made by Commissioner Daggett, seconded by Commissioner Tracy instructing Associated Consultants to proceed with a study on the amount the tie would cost Hutchinson Utilities. Motion was carried. Don Swanson of Associated Consultants then presented and discussed a letter he had sent to Mgr. Alexander concerning 3M, United Power Association and Hutchinson Utilities in a possible joint venture — to generate electricity and utilize waste heat. After discussion a motion was made by Commissioner Daggett, seconded by Commissioner Tracy engaging Associated Consultants in a feasability study. Motion was carried. Mgr. Alexander reported on the following: 1. No action on the part of Cooper Energy Systems. 2. That General Electric had sent information on a 5% failure of certain transformers. Hutchinson Utilities have three of these units. The Commission chose not to take any action. 3. Discussed the expense of stocking parts for engines 1, 2, 5 & 6. The Commission felt the expense was not feasable considering that the engines are standbys. 4. Cited that certain employees wanted to set up a Deferred Compensation Plan. A motion was made by Commissioner Tracy, seconded by Commissioner Daggett to allow employees to participate in a Deferred Compensation Plan. Motion was carried. 5. Reported that Home Insurance conducted an inspection of the generating plant and gave an excellent rating. 6. Briefly discussed the necessity of going underground with the older run —down overhead lines. Questioned the Commission on how to handle costs. Commissioner Daggett suggested that this should be put in the budget. Mgr. Alexander was instructed to study costs and report to the Commission for further discussion. 7. Introduced a quote from the Marley Cooling Tower Company to make repairs on the oldest tower. Commissioner Daggett suggested that perhaps repairs could be made by Utility employees. Mgr. Alexander was instructed to look into this possibility. The following are November payables: 1 1 1 NOVEMBER PAYABLES - ELECTRIC Petersen - Wisdorf Apollo Piping Supply Pauline Bipes Martin Briggs Colonial Life & Accident Dey Appliance Parts Adam Hendrikson Hutch Utilities I.B.M. Corporation Natural Gas Division Northern States Supply Northwestern National Bank Richard Peterson Quast Transfer Marge Schiro Vermeer Sales & Service Continental Assurance Co. Citizens Bank & Trust New York Life Continental Assurance State Treasurer Petty Cash Kathy Kuphal Randy Jacobson Roberta Schmidt Sharon Miller George Donley Jessie Peterson John McRaith The Hutchinson Leader Floor Care Supply PFC Equipment Dexter Klitzke State Treasurer, Social Security Contribution Commissioner of Revenue State Treasurer Citizens Bank & Trust Hutchinson Utilities Schmeling Oil H & C Electric Cooper Energy Services A & B Electric Abbott Electronics Albrecht Oil Company Allen Office Products American Freight System American Linen Supply American Welding Supplies Distribution inventory, line maint. Mdse, water system Meter reading Rent Accident insurance withheld Mdse. Maint. unit X67 Utility bills withheld Rental /Maintenance Due to Natural Gas Division Accounts Receivable Misc supplies distribution Bond principal & interest payment Legal retainer Freight Meter Reading Trencher maint. Life insurance Federal Tax withheld Medical insurance Life insurance PERA withheld & expense Postage Meter refund & interest Legal publication Misc. supplies Engine inventory #8 School expense FICA withheld & expense State tax withheld PERA withheld & expense Federal tax withheld Collection expense Lube oil Distribution inventory, mdse. Engine inventory #7, engine maint. #7 Service lines Meter expense Gas Office supplies & furniture Freight Laundry Plant supplies 473.20 46.83 290.00 20.00 41.50 15.00 1,626.00 875.00 810.00 490,954.77 91.68 568,183.00 400.00 25.44 290.00 4.71 48.95 5,149.75 7,543.30 203.33 3,786.37 703.81 18.67 9.57 1.43 11.80 38.89 11.85 10.30 396.16 53.04 1,627.50 34.27 6,524.98 4,265.09 3,892.00 5,156.33 148.82 3,678.02 1,692.02 1,890.96 1,750.00 1.70 56.65 762.60 60.57 47.56 41.48 -7) r .. Anderson Chemical Company Chemicals 3,986.39 Andre Industries Tools 93.22 Apollo Piping Supply Maint. water system 4.93 Associated Consultants Engineering fees 6,411.55 Border States Electric Loop line 3,757.00 Brandon Tire Truck maint. 7.00 Carr Flowers Planters for office 31.50 Coast -to -Coast Plant supplies 26.33 Cody & Sons Transformer oil 110.00 Commissioner of Revenue Sales tax 16,034.98 Culligan Water Condition Plant supplies 64.80 Ditch Witch Maint. trencher 94.79 Electric Motor Repair motor 25.25 Erickson Oil Products Gas 36.98 Fabricare Cleaners Laundry 189.50 Family Rexall Drug Office supplies 24.00 Farm & Home Plant supplies 53.46 Farmers Elevator Loop Line - rock 218.07 Fire Extinguisher Plant supplies 50.40 Forbes Auto & Service Truck maint. 12.54 Four Seasons Services Cup inserts 33.40 Fresco Misc. distribution 66.49 G. T. C. Auto Parts Plant supplies 48.77 Gamble Store Plant supplies 9.99 Heikes Hardware Hank Plant supplies, tools 87.11 Home Bakery Hutchinson Telephone Rolls & cookies Telephone 357.01 1,223.47 Hutch Util Employee Fund Employee fund withheld 76.00 Hutch Utilities 214,181.48 Engines 210,769.44 Plant & Utility Center 2,061.67 Interdepartmental Labor 1,350.37 Hutch Wholesale Truck maint, plant supplies 203.07 Misc. I B E W Local 949 Union dues withheld 446.01 Jahnke's Red Owl Coffee 147.96 Junker Sanitation Refuse service 78.00 K -Mac Air Freight Freight 10.00 Krasen Plumbing Building maint. 16.70 Lakeland Engineering Maint. engine #8 55.29 Richard Larson Wally's office 1,053.30 Leef Bros. Laundry 126.22 Lynn Card Company Office expense 55.65 Mankato Business Products Office supplies 41.17 W.P. & R.S. Mars Company Tool 44.76 Oakite Products Plant supplies 123.00 Paper Service Company Plant supplies 145.01 Petersen- Wisdorf Loop line, distribution 2,398.30 inventory Price Electric Mdse 61.45 PSE MACH -7 Cold weather infra -red 162.50 detector Rite -Way Auto Wash Misc supplies 10.00 Rockmount Research Distribution mist. 144.17 Rutz Plumbing Plant mist. 7.50 Shopko Stores Simonson Lumber Maint water system Building maint., misc. 59.99 36.00 distribution Sorenson Farm Supply Bldg. maint. 12.00 Standard Register Co. Office supplies 447.46 Sterling Electric Co. Plant supplies 83.42 Swanke Motors Inc. Truck maint. 56.86 United Building Centers Wally's office 350.26 Velvet Coach Meeting expense 22.82 Vincent Brass & Aluminum Maint water system 152.16 W. D. Enterprises Truck maint. 265.20 Orvis Wahl Misc. - Plant 26.50 Welders Supply Plant supplies 20.53 Zep Manufacturing Plant supplies 269.50 Zins Machining Maint. engine #7 22.00 Transport Clearings Freight 25.44 Brown's Greenhouse Potting soil 2.50 Petty Cash Meter deposit refund & interest 101.60 Petty Cash Office supplies, gas, misc. 218.86 Tom Wiprud Meter deposit refund & interest 21.30 Diane Wegner 22.50 Debra Walters 21.20 Mary Tonn 42.60 Ruth Sturges 42.60 LeRoy Schmeling 42.40 Dana Pochucha 42.60 Maxine Lester 21.20 Debra Krueger 21.30 Gene Jutting 42.60 Dean Heinecke 21.30 Leonard Gaulke 21.20 Patrice Ford 21.20 Gary Forcier 21.20 James Brull 42.40 Mike Blake 21.30 Catherine Baumgarten Hausladen 49.60 Becky Anderson 21.20 Helen Ademski 21.30 Heetland Electric Loop Line 22,896.00 Premier Fastener Plant supplies 179.68 Price Electric Maint. engine #8 11.27 General Trading Plant supplies, mdse, truck 635.55 maint. Bailey Controls Plant supplies, inventory 187.68 Floor Care Supply Utility Center maint. 439.50 GMW Inc. Freight 20.46 General Electric Supply Transformers 1,649.09 H & C Electric Mdse. 25.01 Moorhead Machinery Engine maint. #1 & #8 9,090.69 National Information Zip Code directory 22.95 Price Electric Plant supplies, mdse. 30.54 Quade's Mdse. 125.42 Schmeling Oil Plant supplies 7.70 Sterling Electric United Power Association Plaza OK Hardware Northern States Supply Distribution inventory, mdse. 200.04 Purchased power 126,418.12 Plant supplies, misc. expense 33.17 Misc. - distribution 21.90 NOVEMBER PAYABLES - GAS Mueller Company Apollo Piping Supply American Meter Division Colonial Life & Accident First National Bank First State Federal Hutch Utilities Citizens Bank & Trust State Treasurer First National Bank State Treasurer State Treasurer, Social Security Contribution Hutchinson Utilities First National Bank Citizens Bank & Trust R. G. Read & Company Albrecht Oil Circle Hutch Utility Erickson Oil Products Farm & Home Hutchinson Co -op Hutchinson Utilities Hutch Util utility bills Hutch Wholesale I B E W Local 949 Dr. M. J. Juffer MMUA Gas Task Force McLeod Co -op Power Assn. PSE MACH -7 Ralph's Garage Rockite Silo Simonson Lumber Wally's Tire Shop Welders Supply Petty Cash Commissioner of Revenue Circle -Hutch Utility Circle Pines Utility Fittings inventory Fittings inventory Meter maint. Accident insurance withheld Deposit to Incremental Pricing account Deposit to Contract for Deed account Utility bills withheld Federal tax withheld PERA withheld & expense Deposit to Contribution Account PERA withheld & expense FICA withheld & expense Due to Municipal Electric Plant - prior expenses Deposit to Contribution account Federal tax withheld Regulator inventory Gas Purchased gas Gas Truck maint. Misc. Employees Fund withheld Interdepartmental labor Truck maint. Union dues withheld Misc. expense 1982 assessment Electric usage at Border Station Cold weather infra -red detector Truck maint. Meter expense Truck maint. Truck maint. Misc. Misc. expense State tax withheld Purchased gas Purchased gas 243.09 492.16 282.20 12.00 31,844.56 611 1( 364.00 1,117.46 799.85 20,900.00 774.39 1,187.84 9,124.84 20,900.00 1,053.38 316.92 42.55 1,109.75 172.04 41.50 8.15 16.00 2,152.18 14.47 76.00 89.00 4,897.91 44.10 162.50 167.80 89.11 20.10 21.00 7.50 68.00 845.64 502,827.61 1,113.00 1 1 1 1 Wally's Tire Hutch Utilities Wetenkamp Utility Sales Indianhead Truck Lines The Tapecoat Company Apollo Piping Supply Truck maint. Due to Municipal Electric Plant - prior expenses Meter expense Freight Services Misc. 5.00 9,618.91 87.26 28.89 177.60 1.15 There being no further business, a motion was made by Commissioner Tracy, seconded by Commissioner Daggett to adjourn at 5:00 p.m. Y / / ATTEST H. W. Filk, President Clinton Tracy, Secretary