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02-28-1983 HUCMFebruary 28, 1983 Regular Meeting Commissioner Filk and Commissioner Lyke were present, also present were Mgr. Alexander, Counsel Peterson and Ruth Hakel. President Filk called the meeting to order at 1:00 p.m. The January 31, 1983 minutes were reviewed. A motion was made by Commissioner Lyke, seconded by Commissioner Filk to approve the minutes as presented. Motion was carried. The minutes of the Special Meeting held on February 8, 1983 were also reviewed. A motion was made by Commissioner Lyke, seconded by Commissioner Filk to approve the minutes as presented. Motion was carried. The January electric and gas payables were then considered. A motion was made by Commissioner Lyke, seconded by Commissioner Filk to accept the payables. Motion was unanimously carried. Ruth Hakel presented the financial statements for both entities. After discussion, Commissioner Lyke made a motion, seconded by Commissioner Filk to accept both reports. Motion was unanimously carried. Mgr. Alexander reported on having received correspondence from Lawrence T. Hofmann in regard to the Hutchinson Utilities Commission vs. Curtiss - Wright Corporation and Rolls Royce Limited lawsuit. Judge Miles Lord has scheduled a settlement conference for 2:00 p.m. on March 3, 1983 relative to settlement. He has instructed all parties to appear, along with representatives who have settlement authority and has also asked that those present be prepared to make a settlement demand in a specific amount at that time. A conference call was then held with Commissioner Daggett. It was decided that President Filk, Vice President Daggett, Mgr. Alexander and Counsel Peterson would represent the Hutchinson Utilities Commission at the meeting. President Filk instructed Mgr. Alexander, Counsel Peterson and Ruth Hakel to gather data and figures regarding expenses incurred by the Hutchinson Utilities Commission. Ivan Larson and Orville Kuiken discussed the need for reduction in the natural gas contract demand for the summer period. 1 5 3 As indicated by the figures shown below, an annual savings of $75,248.80 could be realized: Present Contract Demand 5200 MCF 5200 MCF x 12 months x $8.533/MCF = $5321459.20 Present SS -1 Contract Demand 750 MCF x 4 months x $14.533/MCF = $ 43,599.00 $576,058.20 Proposed Contract Demand 3500 MCF 3500 MCF x 12 months x $8.533/MCF = $358,386.00 Proposed SS -1 Contract Demand 2450 MCF x 4 months x $14.533/MCF = $142,423.40 $500,809.40 $576,058.20 500,809.40 Annual Savings on Contract Demands $ 75,248.80 A motion was made by Commissioner Lyke, seconded by Commissioner Filk to request Northern Natural Gas Company to decrease our Contract Demand to 3500 MCF (for 12 months) and increase our Seasonal Service (SS -1) Contract Demand to 2450 MCF (for 4 months, Nov. 27 - March 27). Motion was unanimously carried. Mgr. Alexander informed the Commission that Northern Natural Gas Company has been authorized by the Federal Energy Regulatory Commission to charge on a BTU factor. In turn it is necessary for the Hutchinson Utilities Commission to charge on the same BTU adjustment factor. A motion was made by Commissioner Lyke, seconded by Commissioner Filk to implement a procedure to charge natural gas on a BTU basis. Motion was unanimously carried. Mgr. Alexander reported on attending a Legislative Round -Up meeting held February 23 and 24. Two subjects discussed were co- generation and the additional Public Employees Retirement Association assessment. Mgr. Alexander reviewed with the Commission the Hutchinson Utilities Commission's collection policy. The following are January payables: JANUARY PAYABLES - ELECTRIC American Payment Center Office supplies 50.00 Pauline Bipes Meter reading 315.00 Case Power & Equipment Main power operated equip. 57.14 Chicago Wheel & Mfg. Tools 88.08 Citizens Bank & Trust Deposit to Bond Payment acct. 55,660.42 Colonial Life & Accident Accident insurance withheld 128.00 Gerry's Vision Shoppe Safety glasses - Delmar Ortloff 81.65 Hutch Chamber of Commerce Dues 250.00 Hutch Utilities - UB Employee utility bills withheld 1,095.00 I. B. M. Corporation Lease & maint. services 849.00 Natural Gas Division Due to Natural Gas Division - 473,824.01 Accounts Receivable Richard Peterson Legal retainer 400.00 Margie Robinson Meter reading 315.00 Orvis Wahl Plant supplies 66.00 Zee Medical Service First aid supplies 191.95 New York Life Insurance Medical insurance 81210.82 Security- Connecticut Life insurance 41601.00 Continental Assurance Co. Life insurance 60.50 Petty Cash Postage, pre -sort fee 764.37 Bradley Klima Meter refund 11.64 Margie Koenig Refund - overpayment 2.08 Teresa Flugaur Refund - overpayment 4.15 Putnam Fund Dist. Employee deferred comp withheld 50.00 Citizens Bank & Trust Federal tax withheld 4,982.51 State Treasurer PERA withheld & expense 32934.35 ICMA Retirement Corp. Employee deferred comp withheld 472.00 Kemske Paper Company Office supplies 33.74 Northland Material Handling Maint. power operated equip. 7.00 Sheraton -Ritz Hotel Expense - Quade 248.38 Upholstery by James Maint. power operated equip. 25.00 State Treasurer - Social FICA withheld & expense 6,797.46 Security Contribution State Treasurer PERA withheld & expense 4,492.66 Commissioner of Revenue State tax withheld 4,663.34 Citizens Bank & Trust Federal tax withheld 4,825.91 Great Lakes Elec Consumers Annual dues 341.73 Putnam Fund Dist. Employee deferred comp withheld 50.00 ICMA Retirement Corp. Employee deferred comp withheld 472.00 Texgas Corporation Gas 34.76 Citizens Bank & Trust Deposit to Contribution acct. 201900.00 Fireman's Fund Insurance Insurance withheld 228.16 Northland Material Handling Maint. power operated equip. 2.25 Brian Zimmermann Meter refund & interest 21.20 Jeff Wegner 42.40 Roger Voss 11.55 Frank Wanous 21.20 Charles Thor Meter refund & interest 34.21 JANUARY - ELECTRIC (cont.) Joe Sic Meter refund & interest 21.20 Max Schoening 21.20 Cliff Roiger ! 10.65 Joy Roepke j` 42.60 Janell M. Paul i 21.30 Eva Oversea 21.20 Marcella Millelstadt 21.20 Maude Koelln 21.20 Paul Johnson 42.60 Ruby Hanner 21.30 Mark Erickson i 42.60 Gerard Baumgarten 21.20 Petty Cash 103.00 Petty Cash Office supplies, gas, misc. 261.75 Petty Cash Meter refunds & interest 397.86 Fireman's Fund Ins. Insurance withheld 98.08 Abbott Electronics Meter expense 1.50 Allen Office Products Office supplies 79.47 American Linen Supply Laundry 49.64 American Welding Supply Plant supplies 33.63 Ampower Corporation Plant supplies 37.21 Anderson Chemical Chemical inventory 21654.21 Anderson - Waalen Interiors Paint - Substation trailer 13.68 Apollo Piping Supply Maint water systems 131.34 Associated Consultants Engineering fees 8,328.53 Border States Electric Inventory, maint. URD 616.06 Brandon Tire Truck maint. 101.56 Chapin Publishing Co. Bid advertising 72.39 Coast -To -Coast Plant supplies, misc., bldg. 160.97 maint. Commissioner of Revenue Sales tax 19,803.47 Culligan Water Condition Plant supplies 28.35 Electric Scientific Co. Engine maint. #9 97.13 Electro Watchman Annual charge - monitoring 72.00 Fabricare Cleaners Laundry 161.50 Family Rexall Drug Office supplies 78.86 Farm & Home Dist. Plant supplies, substation 29.58 trailer Floor Care Supply Plant supplies 50.58 Four Seasons Services Cup inserts 66.80 G. T. C. Auto Parts Trans. trailer, power operated 166.10 equip. maint. Gambles Bldg. maint. 6.81 General Trading Co. Mdse., plant supplies, tools 295.79 Graybar Electric Main t. URD 68.04 H & C Electric Mdse., inventory plant supplies, 730.17 line maint. Hagar Jewelry Office supplies 17.25 1 1 1 JANUARY - ELECTRIC (cont.) Home Bakery Hutch Leader Hutchinson Telephone Co. Hutch Util Employee Fund Hutch Util - UB Hutch Wholesale Hydraulic Jack & Equip. IBEW Local 949 Ink Spots Jahnke's Red Owl Jim's Auto Salvage Junker Sanitation Kennedy Appliance Serv. Labor Relations Assoc. Leef Bros. Inc. Earl McDonald Inc. Mankato Business Products Minn. Electric Supply Paper Service Company Plaza OK Hardware Rocki to Silo Rockmount Research & Alloys The Satterlee Company Schmeling Oil Company Share Corporation Simonson Lumber Snap -on Tools Sterling Electric T & R Electric Twin City Testing United Electric Co. Welders Supply Myron Wigen Chevrolet Zep Mfg. Company Allied Electronics Border States Electric Continental Assurance Cooper Energy Services Curtis 1000 Electronic Center Erickson Oil First Bank of Minnesota (Swanke Motors) Cookies Bid advertising Telephone Employee fund withheld Labor 2,036.96 Engines 7,721.64 Plant - Utilities 2,838.55 Center - Util. 3,185.75 Truck maint., plant supplies, power operated equip. maint. Tools Union dues withheld Office supplies Coffee Truck maint. Refuse service URD maint. Misc. expense Laundry URD maint. Office supplies Mdse., plant supplies Plant supplies Plant supplies, tools Misc. Plant supplies Tools Plant supplies Grounds maint. Mdse., plant supplies, URD maint. Tools Mdse., plant supplies Transformer maint. Oil analysis Misc. Plant supplies Truck maint. Plant supplies Misc. - plant Misc. - plant Life insurance Engine maint. #7 Office supplies Plant supplies Gas Truck maint. /517 159.50 66.70 1,223.83 111.00 15,782.90 219.17 13.16 497.45 283.00 189.21 30.00 80.00 33.50 162.00 65.62 33.56 65.52 94.75 39.31 53.70 14.70 118.03 39.21 20.75 182.22 93.93 133.75 41.52 150.00 204.00 118.93 16.20 62.48 658.50 138.47 10.39 230.26 3,768.05 1,002.74 65.65 96.21 221.63 of JANUARY - Hutch Utilities ELECTRIC (cont.) Collection expense 231.82 Quade's Bldg. maint. 9.65 United Electric Corp. Bldg. maint. 9.86 United Power Association Purchased power 426,141.91 Velvet Coach Meeting expense 50.58 JANUARY PAYABLES - GAS Burns Engineering Telemetering maint. 33.00 Case Power & Equip. Power operated equip. maint. 171.39 Colonial Life & Accident Accident insurance withheld 24.50 First State Federal Deposit to Contract for Deed 500.00 account Hutch Utilities - UB Employee utility bills withheld 432.00 Texgas Corporation Gas 20.45 E. R. Berg & Associates Maint. telemetering 175.59 Putnam Fund Dist. Employee deferred comp withheld 150.00 Citizens Bank & Trust Federal tax withheld 1,067.21 State Treasurer PERA withheld & expense 855.14 Citizens Bank & Trust Federal tax withheld 1,005.99 State Treasurer - Social FICA withheld & expense 11283.56 Security Contribution State Treasurer PERA withheld & expense 992.55 Commissioner of Revenue State tax withheld 987.60 Putnam Fund Dist. Employee deferred comp withheld 150.00 Texgas Corporation Gas 61.36 R. G. Read Meeting expense 49.50 First National Bank Deposit to Incremental Pricing 71385.55 account American Meter Division Maint. meters 528.84 American Welding Supplies Misc. 25.19 Apollo Piping Supply Meter set misc. 214.88 Brandon Tire Truck maint. 87.04 Coast -To -Coast Truck maint., misc. 28.87 Electronic Center Misc. 10.49 Energy Economics Meter maint. 27.68 Eurand America Misc. supplies 125.32 G. T. C. Auto Parts Power operated equip. maint. 41.08 Gambles Power operated equip. maint. 1.18 Hutch Iron & Metal Power operated equip. maint. 10.40 Hutch Util Employee Fund Employee fund withheld 24.00 Hutch Utilities - UB Labor, Peak Shaving, gas 22528.43 Hutch Wholesale Truck maint., misc. 59.19 IBEW Local 949 Union dues withheld 102.00 Labor Relations Assoc. Misc. expense 108.00 LaHass Mfg. & Sales Power operated equip. maint. 30.62 Madsen Insurance Agency Insurance 586.00 Plaza OK Hardware Power operated equip. maint., 27.33 misc. r� j � V .-_ JANUARY - GAS (cont.) Ralph's Garage Truck maint. 119.30 Rockmount Research & Alloys Misc. expense 144.81 Sorenson Farm Supply Power operated equip. maint. 13.91 Southside Auto Body Truck maint. 108.00 Texgas Corporation Gas 67.98 W. D. Enterprises Truck maint. 52.00 Welders Supply Misc. 73.85 Zep Mfg. Company Power operated equip. maint. 21.00 Circle -Hutch Utility Purchased gas 606,536.11 Erickson Oil Gas 47.27 First Bank of Minnesota Truck maint. 1.00 (Swanke Motors) McLeod Coop Assn. Final Bill - Peak Shaving 3.00 Hutch Utilities Due to Municipal Electric Plant 11,884.19 January expense There being no further business, a motion was made by Commissioner Lyke, seconded by Commissioner Filk to adjourn the meeting at 3:50 p.m. ATTEST ) �_ H. W. Filk, President 1 Thomas B. Lyke, Secretar