03-28-1983 HUCM.,
/ 6 >> -4t-
Regular Meeting
March 28, 1983
All Commissioners were present, also present were Mgr. Alexander,
Don Swanson of Associated Consultants, Counsel Peterson and Ruth
Hakel.
President Filk called the meeting to order at 1:00 p.m.
A motion was made by Commissioner Daggett, seconded by Commissioner
Lyke to accept the February 28, 1983 minutes as presented. Motion
was unanimously carried.
A motion was made by Commissioner Daggett, seconded by Commissioner
Lyke to accept the minutes of the special meetings dated March 3
and March 23, 1983. Motion was unanimously carried.
A motion was made by Commissioner Daggett, seconded by Commissioner
Lyke to accept the February gas and electric payables. Motion was
unanimously carried.
Ruth Hakel presented the financial statements. After discussion,
Commissioner Lyke made a motion, seconded by Commissioner Daggett
Mgr. Alexander and Don Swanson reviewed with the Commission two
proposals for firm power. The proposals were received from United
Power Association and are attached to the face of these minutes.
After a discussion period, it was the feeling of the Commission
to take the proposals under advisement; and if interest was shown
in the future, proper personnel would be contacted.
A sample Agency Agreement (to be named Central Minnesota Power
Agency) had been given to the Commissioners prior to the meeting.
Mgr. Alexander discussed advantages in belonging to such an agency;
namely, the possibility of selling energy to various smaller towns
and perhaps utilizing Hutchinson Utilities Commission's dispatching
center. It was decided to delay action until a future date.
Don Swanson presented an analysis of the 1982 Hutchinson electric
operation. President Filk expressed his appreciation for a very
fine report.
1
to accept both reports.
Motion was unanimously carried.
Mgr. Alexander reviewed
the 1983
budget for both entities. After
discussion, a motion was
made by
Commissioner Daggett, seconded
by Commissioner Lyke to
accept the
budgets as presented. It was
noted that the budget be
used as
a guideline for staff and that
quarterly reports be prepared
for
the Commission.
Mgr. Alexander and Don Swanson reviewed with the Commission two
proposals for firm power. The proposals were received from United
Power Association and are attached to the face of these minutes.
After a discussion period, it was the feeling of the Commission
to take the proposals under advisement; and if interest was shown
in the future, proper personnel would be contacted.
A sample Agency Agreement (to be named Central Minnesota Power
Agency) had been given to the Commissioners prior to the meeting.
Mgr. Alexander discussed advantages in belonging to such an agency;
namely, the possibility of selling energy to various smaller towns
and perhaps utilizing Hutchinson Utilities Commission's dispatching
center. It was decided to delay action until a future date.
Don Swanson presented an analysis of the 1982 Hutchinson electric
operation. President Filk expressed his appreciation for a very
fine report.
1
Sue Potter of West Central Industries presented a proposal on
reader /printer and microfilm capabilities. After a discussion
period, it was the feeling of the Commission to take the matter
under advisement until a future date.
Don Swanson presented revised estimates for the roof repair.
Two types of roof - built -up, $55,000 and pitch, $67,000.
Commissioner Daggett moved to have Associated Consultants
prepare specifications for the flat built -up roof bid ($55,000),
seconded by Commissioner Lyke. Motion was unanimously carried.
Copies of the Interconnection and Interchange Agreement with
Northern States Power Company was presented by Don Swanson and
signed by President Filk and Secretary Lyke.
The following are February payables:
1
1
A111i,SSOCIATED '111 :ONSULTANTS Inc.
REGISTERED PROFESSIONAL ENGINEERS
3131 FERNBROOK LANE NORTH
MINNEAPOLIS, MINNESOTA 55441
612/558 -5511
Hutchinson Municipal Utilities
225 Michigan Street
Hutchinson, MN 55350
Attn: Mr. Rufus Alexander, Manager
Dear Alex:
February 24, 1983
RE: UPA Power Proposals
United Power Association now has two proposals for firm type power
which you may or may not wish to consider. The types of power purchase plans
are:
Participation Power
Presently you are under contract until 1985 for 10 MW of Coal Creek
Participation Power, which you have been able to obtain at nearly a 100%
load factor. We projected your 1982 average delivered cost for this power
to be 33.53 mills per KWH, while actual cost proved to be 33.27 Mills.
UPA has proposed to extend this agreement with you until 1992, with
guaranteed demand charges. Table I indicates the projected costs in Mills
per KWH.
Ten Year Ownership in Coal Creek
UPA has made another proposal for firm type power where any utility or
group participation would purchase ownership in Coal Creek Generating
Station (including D.C. transmission) for a ten year period at $1,000 per
KW. After ten years UPA would guarantee to buy back and the purchaser would
guarantee to sell back the capacity originally purchased for $1,000 per KW.
Table II is a projection of Hutchinson's delivered costs for such
power. In this table estimated interest on money borrowed would replace the
demand charge of Participation Power. Theoretically, the group purchasing
such power would borrow the necessary money and pay interest only for ten
years. After selling the capacity back to UPA, you could retire the debt
with the proceeds from the sale.
Cost Comparison of Participation Power and Ten Year Ownership Power
From an operational view the Participation Power and Ten Year Ownership
power would be identical since both would come from the same electrical
generating station over the same transmission lines.
Mr. Rufus Alexander, Manager
February 24, 1983
Page Two
Table II indicates the comparative costs for the ten year period of
1983 to 1992. Projected costs would be $5,235,000 less under the ten year
ownership plan, the difference being the municipal's ability to borrow money
at a lower interest rate than UPA's fixed cost.
These Tables may best be reviewed orally, to determine the various
ramification of each option.
DES /gal
r�
Yours very truly,
ASSOCIATED CONSULTANTS, inc.
Donald E. Swanson, P.E.
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^ L M - LO tD n co ON O .--L N M ct Lr) tD n CO O) ri
r1 (O 00 00 00 00 00 CO 00 O) M (n ----
41 O) ON ON ON m O) O) CA O) Cl)
>- .-i r1 1-4 .--I -4 .-i .--1 r--I 1-4 r•-i
A �
1
1
(5) Assuming 10,000 KW @ .90 Load Factor or
8,760 Hr x .90 x 10,000 = 78,840,000 KWH /YR.
(5)
Difference
$1.000
(176)
( 70)
41
456
550
649
836
863
981
1,105
5,235
TABLE III
HUTCHINSON MUNICIPAL ELECTRIC
UTILITY
Coal Creek
Particiation Power vs Ten
Year Ownership
1983 -1992
(1)
(2)
(3)
(4)
Participation Power
Ten Year Ownership
Difference
YEAR
Mills /KWH
Mills /KWH
Mills /KWH
1983
34.20
36.43
(2.23)
1984
36.92
37.81
( .89)
1985
39.82
39.30
.52
1986
45.77
39.98
5.79
1987
47.78
40.80
6.98
1988
49.84
41.61
8.23
1989
52.14
42.08
10.06
1990
54.55
43.60
10.95
1991
57.10
44.66
12.44
1992
59.97
45.95
14.02
(5) Assuming 10,000 KW @ .90 Load Factor or
8,760 Hr x .90 x 10,000 = 78,840,000 KWH /YR.
(5)
Difference
$1.000
(176)
( 70)
41
456
550
649
836
863
981
1,105
5,235
i.
Ll
.411h,SSOCIATED '1I11 :ONSULTANTS lunc.
REGISTERED PROFESSIONAL ENGINEERS
3131 FERNBROOK LANE NORTH
MINNEAPOLIS, MINNESOTA 55441
612 /550-5511
Mr. Rufus Alexander, Manager
Municipal Utilities
225 Michigan Street
Hutchinson, MN 55350
February 11, 1983
RE: Utility Building Roof
Hutchinson, Minnesota
FEP , 1983 1.
Dear Alex:
We have revised our estimate for the built
-up roof
to include
the
Mansard treatment along three sides of the new
roof and
the installation
of six interior roof drains. Roof drain piping
would be
installed
above
the suspended ceiling, down to below the floor
in the area
of the
mechanical
equipment room and would discharge below ground
into the
existing
24 inch
storm sewer on the north side of the building.
The revised estimate is as follows:
I. BOND BEAM
1. Demolition Work
$
1,000
2. Concrete Block
1,100
3. Concrete Construction
(A) Forming
1,980
(B) Reinforcing Steel
280
(C) Concrete in Place
1,800
4. Restoration of Roof Perimeter
660
Sub -Total
$
6,820
II. ROOF DRAINS
1. Install Six Roof Drains
$
600
2. Install Drain Pipe
(A) 80' of 4" @ $17
1,360
(B) 80' of 5" @ $19
1,520
(C) 50' of 6" @ $24
1,200
(D) 60' of 10" @ $48
2,880
(E) Fittings, Hangers, Etc.
600
Sub -Total
$
8,160
Mr. Rufus Alexander
Page 2
February 11, 1983
III. MANSARD ROOF
1. Framing
2. Sheathing
3. Roofing
4. Soffit and Trim
Sub -Total
IV. ROOF REPLACEMENT
1. Remove existing roof
2. Remove skylights - fill in openings
3. Replace damp insulation
4. Install tapered insulation
5. Install 2" rigid insulation
6. Install four ply membrane
7. Install roof gravel
8. Provide roof bond
Sub -Total
TOTAL
$ 2,480
1,240
1,320
500
$ 2,700
1,500
1,000
7,710
1,620
18,900
400
1,080
$ 5,540
$34,910
$55,430
Please call if you have any questions or need additional information.
We are looking forward to meeting with you on February 28th.
Very truly yours,
ASSOCIATED CONSULTANTS, INC.
Carl L. Wardlow, P.E.
CLW /gal
1
1
1
,rr
Aii.SSOCIATED '11II.ONSULTANTS
I REGISTERED PROFESSIONAL ENGINEERS
3131 FERNBROOK LANE NORTH
MINNEAPOLIS, MINNESOTA 55441
612/559 -5511
Mr. Rufus Alexander, Manager
Municipal Utilities
225 Michigan Street
Hutchinson, MN 55350
Dear Alex:
Inc.
arc 2
x,1941
December 23, 1982
RE: Utility Building Roof
Hutchinson, MN
As you suggested, we have given some additional thought to the pitched
roof concept of roof replacement for the utility building. Enclosed are two
prints of a perspective drawing of the building with such a roof, which may
help you visualize the end result. We have added a mansard roof treatment
at the north and south eaves to soften the appearance and to provide some
weather protection for the doorways at the south side of the building.
One of the advantages, not mentioned in our letter of November 24,
1982, that this type of roof would afford is additional space for storage or
other purposes. However, utilization of this space would require
construction of access stairs and, depending on the floor loading, a
"beefing up" of the structural system.
We have revised our preliminary cost estimate of this type of roof, to
include the mansard treatment and a full gable at the west end of the roof.
This estimate does not inlcude any provisions for utilization of the
additional space.
COST ESTIMATE
Pitched Roof
1. Bond Beam
A. Demolition work
$1,000
B. Concrete block
1,100
C. Concrete construction
(1) forming
1,980
(2) reinforcing steel
280
(3) concrete in place
1,800
D. Restoration of roof perimeter
660
Sub total
$6,820