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
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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