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02-24-1986 HUCM1 Regular Meeting February 24, 1986 Commissioner Beatty and Commissioner Lyke were present; also present were Mgr. Alexander and Ruth Hakel. Vice President Beatty called the meeting to order at 1:05 p.m. A motion was made by Commissioner Lyke, seconded by Commissioner Beatty to accept the January 21, 1986 minutes as written. Motion was unanimously carried. January payables for both entities were reviewed. A motion was made by Commissioner Lyke, seconded by Commissioner Beatty to accept the payables as presented. Motion was unanimously carried. Ruth Hakel presented the gas and electric financial statements. Motion was made by Commissioner Lyke, seconded by Commissioner Beatty to accept the statements as presented. Motion was unanimously carried. Mgr. Alexander reviewed the 1985 year end budget. After discussion of the over -all budget, Commissioner Lyke inquired if dollars were available representing savings on medical insurance for 1985. Data will be ready for the March meeting. The 1986 electric and gas projected budgets were discussed. Mgr. Alexander informed the Commission that Home Insurance Company would no longer insure the City of Hutchinson. (On February 19, 1986 Home Insurance Company gave Hutchinson Utilities Commission sixty (60) days notice for termination of coverage) Increased insurance cost has raised the budget expense substantially. At this time Don Swanson of Associated Consultants and Ivan Larson were welcomed to the meeting. Mgr. Alexander continued discussing the budget and expressed his concern regarding the Gas Division's projected earnings of $32,000. Ivan Larson was called upon to discuss an alternative which could produce additional revenue - adjust the fuel base to $3.85, instead of $4.00; this also being a more realistic fuel base as the price of gas has decreased. (Attached find data sheet.) 1 s i After discussion, a motion was made by Commissioner Lyke, seconded by Commissioner Beatty authorizing Mgr. Alexander and Ivan Larson (also any member of Commission) to appear before the City Council and request the fuel adjustment base be changed to $3.85, effective immediately. Motion was unanimously carried. Permission was given to change the 1986 projected gas revenue figure. Mgr. Alexander cited the need for a 4 -wheel drive vehicle - to be used for pulling equipment and for snow removal. A motion was made by Commissioner Lyke, seconded by Commissioner Beatty to accept the 1986 projected budgets. Motion was unanimously carried. Don Swanson reported on the Missouri Basin. Considering all facts, it does not appear at this time, that Hutchinson Utilities Commission can economically utilize the Missouri Basin Municipal Power Agency Wholesale Power. During the last meeting Don Swanson presented preliminary data on the Manitoba Hydro Power. At this time another report covering updated information was given. (Project no. 8547, dated February, 1986) After discussion, a motion was made by Commissioner Lyke, seconded by Commissioner Beatty to sign a Letter of Intent requesting 15 megawatts of Participation Power and 7 =2 megawatts of Diversity Power from Manitoba Hydro. Motion was unanimously carried. Don Swanson stated that the Integrated Transmission Agreement between Hutchinson Utilities Commission and United Power Association would be presented at the March meeting. Mgr. Alexander aske6i for guidance regarding investing'in the Franklin Fund. Concensus of opinion being not to invest in the Fund. 1. we would be buying units not GNMA's. 2. Many GNMA's are being sold - could take a loss Mgr. Alexander presented a Railroad Right -of -way Agreement to the Commission for consideration. 1 Ll Presented to the Commission on February 24, 1986 Hutchinson Utilities Commission Proposed Fuel Adjustment Change Fuel Adjustment base at $4.00 1 MCF gas sold @ $5.00 1 MCF gas purchased @ 4.00 $1.00 difference 1 MCF gas sold @ 5.00 1 MCF gas purchased @ 3.85 $1.15 Fuel Adjustment $4.00 - $3.85 = .15 - $1.00 difference Fuel Adjustment base at $3.85 1 MCF gas sold @ $5.00 1 MCP gas purchased @ 3.85 $1.15 difference (Estimated 1986) 938,000 MCF Less January 136,000 MCF Less February 130,000 MCF 672,000 MCF x .15 = $100,800 RAILROAD RIGHT -OF -WAY AGREEMENT This Agreement, made this 10th day of April If 1986, by the Hutchinson Utilities Commission, hereinafter called grantor, to the City of Hutchinson, a municipal corporation, hereinafter called grantee, witness: Grantor, in consideration of One Dollar and other good and valuable consideration receipt of which is hereby acknowledged, hereby sells and conveys onto grantee and onto its successors and assigns, for its use as aright -of -way for a railroad, a strip of land located in the City of Hutchinson, County of McLeod and State of Minnesota, legally described as follows: A tract of land, in Block 3 of HUTCHINSON INDUSTRIAL DISTRICT plat and Lot 11 of Block 1 of FIRST ADDITION TO HUTCHINSON INDUSTRIAL DISTRICT plat, 60 feet in width being 30 feet on each side of the following described line: Commencing at a point 50.00 feet North and 500.00 feet West of the Northeast corner of said Block 3 of HUTCHINSON. INDUSTRIAL DISTRICT; thence South 89 degrees 35 minutes 00 seconds East, a distance of 48.67 feet; thence on a tangential curve to the right having a central angle of 89 degrees 35 minutes 00 seconds and a radius of 424.41 feet, a distance of 663.58 feet; thence South, parallel to the East line of said Block 3 of HUTCHINSON INDUSTRIAL DISTRICT to the South line of said Lot 11 of Block 1 of FIRST ADDITION TO HUTCHINSON INDUSTRIAL DISTRICT and there terminating. Said land right -of -way shall be used solely for the purposes of transport by rail of freight and passengers or either, or for purposes incidental thereto, and for no other purposes. Grantee shall have a free and perpetual right of entry, right -of -way, and easement at any and all times for the purpose of surveying, locating, building, constructing, using, operating, altering, improving and repairing the branch line of any such railroad, its depots, warehouses, stationhouses, bridges, and all necessary erections and for all other purposes necessary and convenient for the operation and the busines of the branch road. Grantor and grantee further agree that: HUTCH ILITIES MISSION By Its Preside CITY OF HUTCHINSON I'V61, t--- ---cal By �� Paul Ackland, Mayor 11 a) Installation and maintenance of said track shall be at grantee's expense; b) If there is default or abandonment of rail service on any such track, the scrap value, if any, of said track shall belong to grantee. c) If grantee, its successors or assigns shall at any time hereafter cease permanently to use said railroad and it shall be abandoned or the route thereof changed so as not to be continued over the premises, then the land and the right -of -way hereby granted shall be reverted to grantor, its heirs and assigns. HUTCH ILITIES MISSION By Its Preside CITY OF HUTCHINSON I'V61, t--- ---cal By �� Paul Ackland, Mayor 11 1 1 ATTEST: Gary D.' lotz, City Clerk STATE OF MINNESOTA) ss. COUNTY OF MC LEOD ) The foregoing instrument this 10th day of was acknowledged before me April 1 1986, by Eugene Daggett, President on behalf of the corporation. Notary Public S E A L �aoxc•,;a MARILYN J. SWANSON k .i NOTARY PUBLIC -MINNESOTA MEEKER COUNTY My Commission Expires Nov. 20, 1900 L1 Motion was made by Commissioner Lyke, seconded by Commissioner Beatty to approve the execution of the Right -of -Way Agreement subject to the approval of Counsel Peterson. Motion was unanimously carried. (Copy attached to the face of these minutes) A motion was made by Commissioner Lyke, seconded by Commissioner Beatty to authorize Mgr. Alexander to attend the 81st annual Midwest Gas Association meeting to be held in Minneapolis, MN on March 2 -4, 1986. Motion was unanimously carried. A motion was made by Commissioner Lyke, seconded by Commissioner Beatty authorizing the attendance of Mgr. Alexander and the Commissioners to attend the National Conference of the American Public Power Association to be held June 16 -18, 1986 in Toronto, Canada, also authorizing Mgr. Alexander to attend the executive seminars to be held June 13 and 14. Motion was unanimously carried. Mgr. Alexander reported that during a hot gas path inspection on #8, part of a transition piece was found in the combustion chamber. Transition piece has been replaced. The following are January payables: 1 q7 JANUARY PAYABLES - ELECTRIC Scientific Columbus Inventory 1,937.89 First National Bank Payroll deposit plan 1,724.86 Firstate Federal Savings Payroll deposit plan 3,096.38 Citizens Bank & Trust Co. Payroll deposit plan 5,034.32 State Treasurer PERA withheld & expense 4,125.43 D.O.E.R. SS Ret. Div. FICA withheld & expense 4,249.70 Citizens Bank & Trust Co. Federal tax withheld 5,241.67 Security - Connecticut Life insurance 4,520.50 Mark Myers Meter refund & interest 5.13 Judith Wraspir Meter refund & interest 35.82 Petty Cash Meter refund & interest 988.59 Putnam Fund Dist. Employee deferred comp withheld 25.00 ICMA Retirement Employee deferred comp withheld 1,050.00 Woodmen Accident Medical insurance 5,455.02 Postmaster Presorted permit 50.00 Continental Assurance Co. Life insurance 47.30 Four Seasons Services Cup inserts 39.80 Northern States Supply Supplies 15.68 MN Electric Supply Supplies 10.46 American Family Life Employee insurance withheld 128.40 American Payment Centers Rent 66.00 Citizens Bank & Trust Co. Deposit to Contribution Account 25,000.00 Citiznes Bank & Trust Co. Deposit to Bond & Int. Pay't Acct 55,258.33 Colonial Life & Accident Continental Assurance Co. Employee insurance withheld Life insurance 180.90 200.90 Continental Safety Equip. Supplies 37.85 Electroswitch Building maint. 518.02 Graphic Controls Corp. Dispatch supplies 60.92 Great Lakes Elec Consumer Dues 551.94 Hutch Area Chamber of Comm Dues 150.00 Hutch Utilities Employee utility bills withheld 800.00 IBM Corp. Lease & service maint. 987.50 W.P. & R.S. Mars Co. Mdse., supplies 10.35 Midwest Gas Assn. Employee insurance withheld 26.00 Paper Service Co. Plant supplies 274.26 Petersen - Wisdorf, Inc. Line maint. 170.00 Richard Peterson Legal retainer 400.00 Petty Cash Postage 838.94 Zep Mfg. Co. Plant supplies 476.75 Truck -Mate, Inc. Transportation equipment 243.00 Plowman's, Inc. Truck 831.65 Apollo Piping Supply Plant supplies 50.89 Motor Vehicles Dept. Truck licenses 598.50 Quill Corp. Office supplies 136.16 Minnesota UC Fund Unemployment - C. Johnson 704.00 Bruss upholstery Truck maint. 166.00 State Treasurer PERA withheld & expense 3,809.53 D.O.E.R. SS Ret. Div. FICA withheld & expense 3,889.68 Commissioner of Revenue State tax withheld 4,269.0E Citizens Bank & Trust Co. Federal tax withheld 4,530.39 Putnam Fund Dist. Employee deferred comp withheld 25.00 JANUARY - ELECTRIC (cont) ICMA Retirement Corp. Employee deferred comp withheld 1,050.00 MMUA Registration 250.00 Plowman's, Inc. Truck 9,098.00 Sterling Electric Supplies 63.17 Associated Consultants Engineering fees 145.00 Citizens Bank & Trust Co. Payroll deposit plan 5,282.43 Firstate Federal Savings Payroll deposit plan 2,950.26 First National Bank Payroll deposit plan 1,928.41 Hutchinson Telephone Co. Telephone 1,256.54 Petty Cash Meter refund & interest, office 326.10 supplies, plant supplies, bldg. maint. Clarence Hoodechek Meter refund & interest 41.00 Scott Williams 21.20 Jeff Seitzer 21.30 Terry Mitzger 42.40 Richard Langenfeld 21.30 Mary Kurth 17.39 James Knudson 21.30 James Gill 42.60 Donald Eich 42.40 Howard Anderson 21.20 Sterling Electric Co. Plant supplies, mdse., line maint. 110.62 MN Electric Supply Co. Mdse., supplies 157.36 Paper Service Co. Plant supplies 152.54 Total Tool Tools 12.62 United Electric Co. Plant supplies 149.77 Mautz Paint Co. Plant supplies 130.09 Graybar Electric Co. Inventory 178.61 H & C Electric Supply Inventory 463.20 Border States Electric Inventory 1,117.96 Anderson Interiors, Inc. Building maint. 75.71 Associated Consultants Engineering fees 2,444.50 Brandon Tire Truck maint. 12.95 Central MN Communication Radio maint. 162.93 Commissioner of Revenue Sales tax 23,416.30 Culligan Water Cond. Plant supplies 45.00 Dey Appliance Parts Mdse. 23.69 Ditch Witch of MN Power operated equipment maint. 309.71 Family Rexall Drug Office supplies 95.52 Fireman's Fund Insurance Employee insurance withheld 98.08 Home Bakery Cookies 191.16 Howard Industries, Inc. Inventory 2,079.00 Hutchinson Fire & Safety Plant supplies 36.90 Hutch Util - Emp Fund Employee fund withheld 78.50 Hutch Utilities Labor 5,135.79 11,343.79 Elec. usage 6,208.00 plant & UC IBEW Local 949 Junker Sanitation Union dues withheld Refuse service 457.75 81.00 Lakes Gas Co. Gas 167.20 Henry Thran Meter refund & interest 21.30 1 I JANUARY - ELECTRIC (cont) MN Benefit Assn. MMUA Northern States Supply Petersen- Wisdorf, Inc. Plowman's Inc. Rutz Plumbing & Heating Schaeffer Mfg. Co. Scientific Columbus Sorensen Farm Supply UPA Upper Midwest Sales Velvet Coach W E S C O General Trading Co. Allen Office Products American Linen Supply American Welding Supplies Anderson Chemical Co. Burlington Northern RR Coast to Coast Copy Equipment, Inc. Electro Watchman, Inc. Fabricare Cleaners Farm & Home Distributing Fitzloff Hardware Floor Care Supply Forbes Auto Store Graybar Electric Co. H & C Electric Supply Hutchinson Co -op Hutchinson Computer Ind. Hutch Sports & Equip. Hutch Snyder Drug Hutch Wholesale Supply Hydra- Power, Inc. Ink Spots, Inc. Krasen Plumbing & Heating Lawson Products, Inc. Leef Bros., Inc. Mankato Business Products MN Electric Supply Plaza Hardware & Gifts Quade Electric Road Machinery & Supplies Schmeling Oil Co. Sharstrom Plumbing Simonson Lumber Dale Sturges Employee insurance with h Safety training Mdse. Inventory Truck maint. Bldg. maint., truck main Oil Meter maint. Bldg. maint. Station equipment maint. Plant supplies Meeting expense Inventory Plant supplies, mdse., truck maint. Office supplies Laundry Plant supplies Plant supplies Lease Plant supplies, bldg. m maint. Office supplies Annual charge - alarm s Laundry Truck maint., tools, li Plant supplies, bldg. m Bldg. maint. Supplies Bldg. maint. Inventory Plant supplies Plant supplies Truck maint. Film Plant supplies, mdse., t Inventory Office supplies Bldg. maint. Plant supplies Laundry Office supply Mdse., bldg. maint. Office supplies, bldg. m truck maint. Plant supplies - undergr Mdse. Truck expense Bldg. maint. Plant supplies, bldg. ma Snow plowing /0-105 eld 10.00 77.50 1.60 2,090.59 119.55 t. 221.93 259.54 91.46 3.30 163.00 47.40 41.86 96.85 bldg. maint, 290.99 125.93 62.34 59.97 250.00 25.00 aint, equip 116.84 ystem 72.00 67.50 ne exp. 32.06 aint. 19.74 25.00 110.00 71.64 201.60 17.50 11.98 11.00 12.45 ruck maint. 849.13 171.00 362.50 2.86 244.52 32.60 53.94 185.34 aint., 78.76 ound exp. 167.80 16.95 52.06 17.00 int. 112.27 375.00 123.61 ound exp. 167.80 16.95 52.06 17.00 int. 112.27 375.00 JANUARY Truck Utilities & Mfg. - ELECTRIC (cont) Truck maint. 76.20 American Meter Co. Orvis Wahl Bldg. maint., truck maint., line exp 494.13 Inventory Welders Supply Co. Plant supplies 15.50 2,835.02 UPA Purchased Power 504,657.02 Citizens Bank & Trust Co. GTC Auto Parts Truck maint, mdse. 246.05 Employee deferred comp withheld Natural Gas Division Due to Natural Gas Division 602,916.46 300.00 Omaha Section NACE Accounts receivable 55.00' Continental Assurance Co. Medical Insurance 18.70 2,047.78 Meter equipment JANUARY PAYABLES - GAS Distran Sales Co. Inventory 362.64 American Meter Co. Inventory, maint. of services 478.88 Sid Harvey Inventory 11.11 Hutch Utilities Payroll deposit plan 2,835.02 State Treasurer PERA withhold & expense 976.19 Citizens Bank & Trust Co. Federal tax withheld 1,077.32 Putnam Fund Dist. Employee deferred comp withheld 100.00 ICMA Retirement Corp. Employee deferred comp withheld 300.00 Omaha Section NACE Registration 55.00' Continental Assurance Co. Life insurance 18.70 Rockford - Eclipse Meter equipment 149.49 American Family Life Employee insurance withheld 50.80 Colonial Life & Accident Employee insurance withheld 39.00 Continental Assurance Co. Life insurance 79.41 Elvin Safety Supply Energy audit expense 201.24 Firstate Federal Savings Deposit to savings 500.00 Hutch Area Chamber of Comm Dues 100.00 Hutch Utilities Employee utility bills withheld 390.00 Midwest Gas Asso. Membership investment 804.00 Midwest Gas Asso. Employee insurance withheld 21.66 State Treasurer Employee insurance withheld 9.00 Redman Travel Meeting expense 190.00 Apollo Piping Supply Inventory 95.79 Petty Cash Meeting expense - Ivan Larson 262.85 Hutch Utilities Payroll deposit plan 2,927.82 State Treasurer PERA withheld & expense 1,008.68 State Treasurer FICA withheld & expense 913.56 Commissioner of Revenue State tax withheld 998.71 Citizens Bank & Trust Co. Federal tax withheld 1,126.70 Putnam Fund Dist. Employee deferred comp withheld 100.00 ICMA Retirement Corp. Employee deferred comp withheld 300.00 Petty Cash Truck maint., meeting expense 16.52 General Trading Co. Supplies, truck maint. 21.24 American Meter Company Inventory 633.52 American Welding Supplies Supplies 49.43 Circle Hutch Utility Board Purchased gas 466,401.78 Distran Sales Company Inventory 73.86 Earl's Welding /Industrial Supplies 48.00 Electro- Watchman, Inc. Annual charge - alarm system 48.00 1 JANUARY - GAS (cont) Farm & Home Distributing Hutch Wholesale Supply Plowman's, Inc. Schmeling Oil Val -Tex Valves Welders Supply Co. Hutch Utilities Erickson Oil Products GTC Auto Parts Midwest Gas Assn. Dresser Measurement Div. Hutch Util - Emp. Fund IBEW Local 949 American Meter Company Control Contractors Supply Central MN Communication Energy Economics Gas Supply, Inc. Hutch Utilities Lakes Gas Co. Schaeffer Mfg. Co. Medical Insurance Supplies Truck maint. supplies Truck maint. Truck expense Inventory Supplies Due to Municipal Electric Plant January expenses Gas Truck maint. Registration Inventory Employee fund withheld Union dues withheld Meter maint. Supplies Radio maint. Meter maint. Maint. peak shaving Labor, elec. usage peak shaving Gas Truck expense % U 3 -10-S�- 47.39 155.86 20.00 26.04 213.81 169.67 13,961.14 27.68 53.77 250.00 2,251.13 17.50 120.25 84.51 17.48 40.29 41.00 522.98 4,334.02 73.68 139.76 309.78 There being no further business, Commissioner Lyke made a motion, seconded by Commissioner Beatty to adjourn the meeting at 3:40 p.m. Thomas B. Lyke, cretary p C7 ATTEST U, 'A o-t = C ICA' Theodore Beatty, Vice - President