10-25-1982 HUCMRegular Meeting
October 25, 1982
All Commissioners were present, also present were Mgr. Alexander,
Counsel Peterson, Robert Weida and Ruth Hakel.
The meeting was called to order by President Filk at 1:00 p.m.
Robert Weida, representing Commercial Union Insurance Company,
was welcomed to the meeting by President Filk. Mr. Weida presented
a proposal for boiler and machinery insurance (breakdown coverage).
The program has been endorsed by the Minnesota Municipal Utilities
Association for its members. Attached to these minutes is a
copy of the proposal. The annual premium for the units at
generating plant #1 would be $23,544.00. Breakdown coverage for
unit Yk9 would require an additional $16,591.00. Should a proposal
be accepted by the Commission, a binder would be offered after
an inspection had been completed of the facilities to be covered.
President Filk thanked Mr. Weida for his presentation; and, at an
early date, Mgr. Alexander would inform him as to the Commission's
decision.
The September 27, 1982 minutes were discussed. A motion was made
by Commissioner Daggett, seconded by Commissioner Filk to approve
the minutes. Motion was carried.
A motion was made by Commissioner Daggett, seconded by Commissioner
Lyke to accept the minutes of the Special Meeting of September 1,
1982 as presented. Motion was carried.
The September financial reports were reviewed by the Commission.
After discussion, a motion was made by Commissioner Daggett,
seconded by Commissioner Lyke instructing staff to issue the
fourth quarter payment to the General Fund of the City of
Hutchinson in the amount of $62,500 from the electric division;
also, to transfer $400,000 from current investments to restricted
funds; namely, $200,000 to Reserve for Fuel Oil account and
$200,000 to Future Expansion and Development. Motion was
unanimously carried.
At this time, Mgr. Alexander introduced Michael Bissen, employee
of the Citizens Bank & Trust Company. Mr. Bissen explained Bank
24. With a card, customers would have the ability to deposit funds,
withdraw funds and pay bills. At present the Hutchinson Telephone
Company and Cable TV Company are using this service. President
Filk asked that management be presented a letter stating full
operation and charges.
The September electric and gas payables were then considered.
A motion was made by Commissioner Daggett, seconded by
Commissioner Lyke to accept the electric and gas division
payables for September, 1982. Motion was carried.
The electric and gas budgets for the nine month period were
given to the Commissioners with commentaries by Mgr. Alexander.
Both entities show lesser actual income than projected and
expenditures lower than projected.
President Filk commended manager and staff on preparation of
the budget.
Ivan Larson was asked to give a gas study report. He indicated
that with the current rate of return the gas division should
show a 6.5% net for the year end. He personally did not feel
an increase necessary at the present time.
A discussion followed regarding the fuel and power adjustment.
President Filk requested staff to present several options for
the November meeting regarding the implementation of the
adjustments; also, requested Counsel Peterson to determine if
services and policies, etc. should be considered a part or
portion of rate structure.
Mgr. Alexander presented an "Application for Utility Service"
and recommended all new customers complete this form.
Mgr. Alexander reported David Schmidt would soon have drawings
completed for the Northern States Power Company "tie." A
meeting will be held with Associated Consultants, United Power
Association and Northern States Power Company in the near future.
The following are September payables:
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NATIONAL SECURITY INSURANCE UNDERWRITERS
IP.O. Box 979 • Phone: (612) 693 -7876 • Litchfield, Minnesota 55355
Property & Casualty Division
October 22, 1982
Hutchinson Utilities Commission
225 Michigan Street
Hutchinson, Minnesota 55350
RE: Boiler and Machinery Insurance Proposal
Thru the Minnesota Municipal Utilities Association
Dear Sirs:
We are pleased to offer our program based on the information in the application
and written thru Commercial Union Insurance Company. This program has been
endorsed with the Minnesota Municipal Utilities Association for its members.
Following are the details of the property damage coverages:
A limit per accident of 10 million dollars.
Repair or replacement coverage is included, except on objects 30 years of age
or older.
Perils exclusion endorsement is included.
Blanket coverage on:
Broad coverage on steam boilers and hot water boilers
Air tanks and condensers
Electric motors - 75 HP and over
.Internal combustion engines and driven electric generators 2,000 HP anci over
Deep well pump units - 25 HP and over
Specific coverages on:
Steam turbine generator unit - 5,500 KW - breakdown coverage
Gas turbine generator unit - 8,500 KW - breakdown coverage
Deductibles:
Power boilers - PSI of 301 to 600 - $50,000
Steam turbine generator unit - 5,500 KW - $25,000
Gas turbine generator unit - 8,500 KW - $100,000
Internal combustion engines and driven electric generators:
2000 - 3000 HP $15,000
3001 - 5000 HP $25,000
5001 - 6000 HP $30,000
6001 - 7500 HP $35,000
All other objects - $5,000
I'he annual premium amount for the above lisLed boiler and machinery coveray:e.s
would be $23,544.00.
All Fornis of 111"maucc
" Hutchinson Utilitie.- Comniission
October 22, 1982
Page 2
Following are several options in this boiler and machinery insurance program
that you may like to consider and include in the previously listed coverage:
To include expediting expense to $25,000 on all above objects an additional
annual premium charge of $942.00 would be required.
To add blanket coverage on MEA (miscellaneous electrical apparatus) and
transformers with deductibles as listed below, the annual premium would be
$2,826.00.
MEA - $15,000
Transformers: 500 - 10,000 KVA $5,000
10,001 - 30,000 KVA $10,000
To add expediting expense to a limit of $25,000 on MEA and transformers the
annual premium charge of $144.00 would be necessary.
To increase the limit per accident to read $15 million an additional premium
amount of $6,250.00 would be charged annually.
Also, please be advised that no coverage may be bound until all rebuilding
work on the boiler and turbine generator equipment is completed. Also note
that a resurvey is necessary prior to binding.
I look forward to a long association with you and your utility_
Respectfully submitted,
V-21
..
Robert C. Weida, Agent
National Security Insurance Underwriters
Property and Casualty Division
RCW /lln
I would like to express my thanks for the opportunity of
utility with this boiler and machinery insurance quote.
presenting your
Gentlemen, should
you have any questions on this quotation
or if we can be
of any further service
to you, please don't hesitate contacting
our Agency. We
would be glad to
assist you in any way we can and welcome
the opportunity
to serve you with your
insurance needs.
I look forward to a long association with you and your utility_
Respectfully submitted,
V-21
..
Robert C. Weida, Agent
National Security Insurance Underwriters
Property and Casualty Division
RCW /lln
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SEPTEMBER PAYABLES - ELECTRIC
American Payment Center
Pauline Bipes
Citizens Bank & Trust
Colonial Life
Four Seasons Service
Hutch Util. - UB
Natural Gas Division
Richard Peterson
Margie Robinson
Continental Assurance
Continental Assurance
New York Life Insurance
Joe Fahey, Jr.
Petty Cash
Barbara Raiber
Mary L. Krsian
Mary Tenney
Terry Stille
Neil Curit
Randy Baumgarten
Dale Penaz
ICMA Corporation
Putnam Fund Dist.
Citizens Bank & Trust
State Treasurer
American Public Power
Border States Supply
Cooper Energy Services
Electronic Center
Floor Care Supply
H & C Electric
Hydraulic Jack & Equip.
I.B.M. Corp.
Instrulab, Inc.
Petersen - Wisdorf Inc.
Plowman's Inc.
Texgas Corp.
W E S C 0
Zee Medical Services
Zins Machining
Petty Cash
Book Distribution Center
Border States Supply
Dover Corporation
Electro Switch Corp.
I.B.M. Corp.
Lystad's
Ren t
Meter reading
Deposit to Bond Payment acct.
Accident insurance withheld
Cup inserts
Employee utility bills
withheld
Due to Natural Gas Division
Accounts Receivable
Legal retainer
Meter reading
Life insurance
Life insurance
Medical insurance
Refund - overpayment
Meter refunds & interest
Meter refund & interest
Deferred comp withheld
Deferred comp withheld
Federal tax withheld
PERA withheld & expense
Dues
Inventory
Engine maint. #7
Mdse.
Plant supplies
Inventory
Tools
Maint. service
Engine maint. #9
Inventory
Truck maint.
Gas
Inventory
First aid supplies
Misc. distribution
Postage
Misc.
Inventory
Engine maint. #7
Switch gear
Lease
Misc.
45.00
315.00
55,452.08
143.00
33.40
1,070.00
245,128.13
400.00
315.00
51.70
226.00
8,034.08
79.99
451.55
2.35
10.07
4.04
8.15
.76
.56
16.32
250.00
272.00
4,863.93
3,992.37
2,151.34
921.28
796.32
8.94
8.00
113.29
7.50
447.00
6,020.50
76.38
72.20
14.79
18.83
61.65
17.00
721.95
25.32
416.54
874.50
551.14
402.00
7.50
Mankato Business Prod.
Petersen - Wisdorf Inc.
Vincent Brass & Alum.
Eugene Buboltz
R. H. Alexander
Doreen Vlcek
Ronald Shun
Dawn Schlueter Halverson
Renee Saff ert Koglin
Clifford Rasmussen
Steven W. Quast
Arlene Peterson
The Pet Hutch
Maurice's Inc. #334
Mark LeVasseur
RoxAnn S. Lauer
Dan Johnson
Mark Greenwood
Godfather's Pizza
Clarence Freitag
Howard Brandon
Patricia Bouta
Charles Boettcher Jr.
Steve B luhm
Paul Behrens
Black & Decker
Minnesota Municipal
Utilities Assn.
Central Petroleum
PFC Equipment
State Treasurer
State Treasurer
Commissioner of Revenue
Citizens Bank & Trust
Putnam Fund Dist.
ICMA Retirement Corp.
McLeod County Sheriff
Erickson Oil
Minnesota Municipal
Utilities Assn.
Petty Cash
W.D. Enterprises
Ditch Witch
Amoco Oil Company
Anderson Chemical Co.
Apollo Piping Supply
Border States Supply
A. L. Crump & Company
Office supplies
Distribution
Engine maint. #7
Refund - overpayment on
utility bill
Meeting expense
Meter refund & interest
Plant supplies
Special assessment
Oil, mdse.
Engine inventory #8
PERA withheld & expense
FICA withheld & expense
State tax withheld
Federal tax withheld
Deferred comp withheld
Deferred comp withheld
Collection expense
Gas
Meeting expense
Misc. expense
Power operated equip. maint.
Power operated equip. maint.
Gasoline
Chemical inventory
Plant supplies, maint. water
system
Inventory
Engine inventory #8
17.44
63.80
116.17
185.02
21.00
42.40
42.60
42.40
22.40
21.20
42.60
42.60
106.00
106.00
42.60
21.20
36.35
21.30
106.00
16.48
42.40
21.20
21.20
42.60
42.40
1.47
1,200.00
311.18
24.08
3,970.73
7,067.26
4,838.63
4,973.87
272.00
250.00
10.00
126.39
160.00
121.54
121.29
186.91
30.50
43.14
22.36
4,364.00
68.80
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Ed Davis Business
Office supplies
11.30
John Fluke Mfg.
Line maint.
82.00
General Electric Supply
Meter maint.
149.20
Graybar Electric
Distribution inventory, bldg.
31197.62
maint.
H & C Electric
Mdse., distribution inventory
726.73
Hutchinson Telephone Co.
Telephone
19200.55
Hutch Util Employee Fund
Employee fund withheld
74.00
I B E W Local 949
Union dues withheld
467.60
Image Materials Inc.
Office supplies
29.51
Instrument Controls
Meter maint.
60.82
Kemske Paper Co.
Office supplies
5.55
Lystads
Bldg. maint.
3.65
Paper Service Company
Plant supplies
119.06
Petersen - Wisdorf Inc.
Distribution inventory
180.00
Petty Cash
Meter deposit & interest,
544.67
office supplies, plant
supplies, misc.
Sterling Electric
Mdse., plant supplies
89.13
Tippecanoe Press
Office supplies
313.68
Vincent Brass & Alum.
Engine maint. #7
90.84
Zep Mfg. Company
Plant supplies
14.00
Mark Christensen
Meter refund & interest
42.40
Esterline Angus
Laboratory equip.
5,762.72
Eugene Rannow
Overpayment on house move
74.62
Sterling Electric
Distribution inventory
679.14
Border States Supply
Distribution inventory,
112.83
underground main
H & C Electric
Distribution inventory, mdse.
(600.59)
(credit)
United Power Assn.
Purchased power, bldg. maint.
409,845.63
Standard Equip.
Repair probeye infrared
540.38
viewer
Albrecht Oil
Gasoline
54.94
Allen Office Products
Office supplies
25.45
American Linen Supply
Laundry
49.64
American Welding Supplies
Plant supplies
16.63
Associated Consultants
Engineering fees
52142.77
Central MN Communications
Radio repair
24.00
City of Hutchinson
Water & sewer bill
179.50
Coast -to -Coast
Plant supplies, truck maint.
44.93
Commissioner of Revenue
Sales tax
13,921.09
Cooper Energy Services
Engine inventory #7
217.78
Crow River Press
Office supplies
219.20
Culligan Water Cond.
Plant supplies
47.25
Dover Corporation
Engine maint. #7
1,160.46
The Drawing Board
Office supplies
15.12
Ericksons
Gasoline
82.28
Fabricare Cleaners
Laundry
204.00
Fairway Construction
Maint. underground
50.60
Family Rexall Drug
Office supplies
60.40
Farm & Home Dist.
Mdse., plant supplies
50.14
Forbes Auto Store
Truck maint.
61.29
Four Seasons Services
Cup inserts
33.40
Gambles
Bldg. maint.
182.16
General Electric Co.
Engine maint. #8
11386.70
General Trading Co.
Plant supplies, mdse, truck
296.22
maint.
Graybar Electric
Bldg. maint.
11.55
Home Bakery
Cookies
229.50
Hutchinson Co -op
Misc. expense
35.75
Hutchinson Plumbing
Bldg. maint.
19.70
Hutch Utilities - UB
19,621.65
Engines 17,352.00
Labor 1,459.00
Building Lights & Gas 810.65
Hutch Wholesale
Bldg. maint., plant supplies,
148.55
truck maint.
Ink Spots Inc.
Office supplies
107.00
Jahnke's Red Owl
Coffee
191.32
Junker Sanitation
Refuse service
80.00
Leef Bros.
Laundry
72.02
Mankato Business Prod.
Office supplies
49.79
Moorhead Machinery
Maint. engine #8
11451.90
Northland Material Hand.
Truck maint.
104.93
Oakite Products
Plant supplies
123.00
Olsen Chain & Cable
Underground maint.
65.00
Plaza OK Hardware
Plant supplies, misc. expense
26.39
Price Electric
Bldg. maint., engine maint. #9
410.14
Rockite Silo
Distribution maint.
6.60
Scientific Columbus
Engine maint. #9
462.40
Share Corporation
Distribution maint.
100.53
Simonson Lumber
Plant supplies
67.74
Sorenson Farm Supply
Bldg. maint.
16.44
Texgas Corp.
Gas
65.24
Thorsen, Campbell,
Audit
3,700.00
Rolando & Lehne
Warner Industrial Supply
Office supplies
98.05'
Welders Supply
Plant supplies
72.58
September Payables - Gas
Colonial Life
First National Bank
First State Federal
Hutch Utilities - UB
Putnam Fund Dist.
Accident insurance withheld 24.50
Deposit to Contribution 20,900.00
account
Deposit to Contract for Deed 500.00
account
Employees utility bills withheld 422.00
Deferred comp withheld 150.00
Rolando & Lehne
Citizens Bank & Trust
Federal tax withheld
1,072.96
State Treasurer
PERA withheld & expense
864.16
City of Hutchinson
Quarterly contribution
62,500.00
Minvalco Inc.
Inventory
47.73
Mueller Company
Inventory
581.28
Texgas Corp.
Gas
20.05
City of Hutchinson
Blacktop mix - mains
57.75
Central Petroleum
Oil
119.83
State Treasurer
PERA withheld & expense
870.67
State Treasurer
FICA withheld & expense
1,320.26
Commissioner of Revenue
State tax withheld
1,025.82
Citizens Bank & Trust
Federal tax withheld
1,082.04
Putnam Fund Dist.
Deferred comp withheld
150.00
Orville Kuiken
Meeting expense
154.23
American Meter Division
Meter inventory
61.64
Apollo Piping Supply
Inventory
71.18
Border States Supply
Misc. expense
37.85
Don Hall Company
Mdse.
35.45
Energy Economics
Meter maint.
904.30
Hutch Util. Employee Fund
Employees fund withheld
16.00
I B E W Local 949
Union dues withheld
96.00
Jungclaus Implement
Power operated equip. maint.
64.47
Minvalco
Inventory
49.95
Mueller Company
Inventory
364.34
Northern States Supply
Misc. expense
14.58
Petty Cash
Meeting expense, misc.
20.18
Albrecht Oil
Gasoline
27.46
American Welding Supplies
Misc.
44.00
Circle -Hutch Utility
Purchased gas
168,150.64
Energy Economics
Meter maint.
949.74
Erickson Oil
Gasoline
41.14
G T C Auto Parts
Truck maint.
46.64
Hoffman Plumbing
Meter expense
17.44
Hutch Utilities - UB
Interdepartmental labor,
21629.21
gasoline, truck maint.
Hutch Wholesale
Truck & power operated equip.
132.72
maint.
Krasen Plumbing
Meter expense
3.63
McLeod Co -op Power Assn.
Electric usage - Peak Shaving
51.50
Plant
Plaza OK Hardware
Meter expense, misc. truck
23.86
maint.
Rockite Silo
Meter maint.
8.75
Standard Equip.
Maint. probeye infrared
540.38
viewer
Texgas Corp.
Gas
120.05
Thorsen, Campbell,
General audit
2,700.00
Rolando & Lehne
Hutch Utilities Due to Municipal Electric 11,602.61
Plant for September
expenses
There being no further business, a motion was made by Commissioner
Lyke, seconded by Commissioner Daggett to adjourn the meeting at
5:05 p.m.
ATTEST
H. W. Filk, President
Thomas B. Lyke, Secretary
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