Loading...
03-31-1986 HUCMMonthly Meeting March 31, 1986 All Coninissioners were present, also present were Mgr. Alexander, Counsel Peterson and Ruth Hakel. President Daggett called the meeting to order at 1:C0 p.m. President Daggett welcomed ,lane Hodgins, staff writer for the Hutchinson Leader. The February 24, March 6 and March 1.1 minutes were reviewed. In reference to the Railroad Right-- of -TWay, ConmLissioner Daggett questioned what would happen to the property providing the tracks would be abandoned - it would revert back to the Utilities in the condition it- or i_ -, in�� l ly was �. i -\; F: r� to .rFi l .roach . A motion was mace by Commissioner LYkc, seccmded by Commissioner Daggett to accept the ndnutes in t ieir pririteu fo:nu. Motion was unanimously carried. Motion was made by Commissioner Beatty, ceconded by Commissioner Lyke, 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 financial statements as presented. Motion was unanimously carried. 1 %054 The February ayat s for tctli entities � � ,y e G i cr sse C . inquiries were made regarding several expenditures: Electric Division Border States Electric Supply $17,705.08 wire Border States Electric Supply 4,928.00 9 KV arrestors BuYraeister Electric Cx<pany 2,829.60 36 meters Gas Division Gas Supply Inc. 3,838.86 Replacement of 16 relief valves for propane tanks, also equipment for vaporizer Motion was made by Commissioner Beatty, ceconded by Commissioner Lyke, 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 financial statements as presented. Motion was unanimously carried. 1 %054 -- 1 i Don Swanson of Associated Consultants reported on meetings with United Power Association. As Commissioner Daggett was not present for the February 24th meeting, Mr. Swanson reviewed the Commission's request for 15 megawatts of Participation Power and 7 megawatts of Diversity Power from Manitoba Hydro. Wheeling will be charged from Canadian border to the Delano substation. No wheeling charges from the hydro site to Canadian border or from Delano to Hutchinson providing Hutchinson Utilities Commission participates in Integrated Transmission System Agreement. Power to be available by 1996 for a 16 year period. Letter of Intent indicating such a request will be prepared in the very near future. A meeting with United Power Association, Associated Consultants, Southern Minnesota Municipal Power Agency and Hutchinson Utilities Commission has been scheduled for April 7 to review all amendments to the proposed Integrated Transmission System Agreement. Mr. Swanson was thanked for his presentation. He was instructed to continue with his feasibility study including study of land, easements, right -of -ways, etc. in order for the Utilities to realize a future savings in the purchase of : °holcsalc p;;acr and wheeling. A refund in the amount of $62,158 was received by United Power Association. This amount represents a cost adjustment for the 1985 wheel.i.ng. President. Daggett suggested it be placed in the General Fund, died that this fund be used to offset engineering services relative to the grid. A prerosal for appraisal services sul— mitted by GAB Business Services, Inc. was discussed. Mgr. Alexander did not feel the services were needed at the present time. The Commission agreed. (Proposal for service on file) Advertisements for bids for 1986 heavy duty 3/4 ton 4x4 pickup for Hutchinson Utilities Commission had been published in the Hutchinson Leader on March 11 and March 18, 1986. ADVERTISEMENTS FOR BIDS FOR 1986 HEAVY DUTY Ali TON 04 PICKUP FOR HUTCHINSON UTILITIES COMMISSION Sealed bids will be received and opened by the Hutchinson Utilities Commission at the utility Office, located at 225 Michigan Street, until 2:00 p.m. March 31, 1986. Suppliers shall bid on ° the - ; %; -,ton pick -up straight -out and with trade - in of 1978 % ton Chevrolet pickup. Specifications available at the Utility Office. Bids must be accompanied by a bid bond equal to five (5) per - cent of the bid. The Hutchinson Utilities Com-, mission reserves the right to reject any or all bids and to waive irregu- larities in bids. Hutchinson UttlkNa Comenyaslon ti. H. Alexantllor,•©en" Manager 1 The hour of 2:00 having arrived, the following bids were opened by Secretary Lyke: Plowman's Inc. with trade -in $11,287.00 Myron Wigen Chevrolet Company with trade -in 11,773.05 Motion was made by Conarunissioner Beatty, seconded by Corunissioner Lyke to award the bid to Plowman's Inc. in the amount of $11,287.00 with trade -in (providing the bid meets speciications as called for in the advertisement for bids). Motion was unanimously carried. Dennis Potter of Insurance Planners was welcomed to the meetina. Mr. Potter reviewed the fire insurance coverage on both generating stations: (Penco could conceivable bid) 5. Mr. Potter hoped the deductible could be reduced to $10,000 within the year Motion was made by Co::rnissioner Beatty, seconded by Coilunissioner Lyke to accept the insurance coverage which Aetna Insurance Company has offered (unless some other proposal is offered). Motion was unanimously carried. Mgr. Alexander referred to Nathan Smutka's request for a. Transfer Prover in the amount of $20,900 (a testincr device for large volume gas meters). Mcr. Alexander and the Cc=i ssi.on were not opposed to the concept but felt the timing was not right for this type of expenditure. It was decided to place the issue "on hold" for another year. Jay Friedrichs, representative of Local Union 949, was welcomed to the meeting. 1. It presently is insured with home Insurance Company 2. Coverage will be terminated effective April 15, 1986 - Company unable to bu,, re- insurance 3. This being a very restrictive nrket, only one lbi d (up to this time) had been secured 4. Aetna National Accounts Division Fire, Extended coverage, Vandalism $3.00,000 Deductible Rate: .136 Coverages: $30,716,000.00 Premium: $41,774.00 (12 months) (Penco could conceivable bid) 5. Mr. Potter hoped the deductible could be reduced to $10,000 within the year Motion was made by Co::rnissioner Beatty, seconded by Coilunissioner Lyke to accept the insurance coverage which Aetna Insurance Company has offered (unless some other proposal is offered). Motion was unanimously carried. Mgr. Alexander referred to Nathan Smutka's request for a. Transfer Prover in the amount of $20,900 (a testincr device for large volume gas meters). Mcr. Alexander and the Cc=i ssi.on were not opposed to the concept but felt the timing was not right for this type of expenditure. It was decided to place the issue "on hold" for another year. Jay Friedrichs, representative of Local Union 949, was welcomed to the meeting. // :_ Mgr. Alexander stated after job positions had been posted, several employees had signed the postings. It resulted in a pay change. Mr. Friedrichs stated he had attended a meeting with union members and that the following positions had been discussed: Dexter Klitzke Operator II (electric) hourly rate $11.37 to Ruth's comment: Dexter Welder - Serviceman II (gas) 10.25 presently is Operator I 872% of 11.74 earning 11.97 per hour (Will work in plant if needed) Norman Bohn Lineman II hourly rate $11.97 to Operating Engineer II 11.37 $11.37 frozen until 1 -1 -88 (Will work on Dist. System if needed) Todd Alexander Grotandnan. _TT_ (electric) 881-,% of base $9.95 $ 8.81 C. Daggett: Job postings were not posted until after the special meeting relative to Alex wanting his son hired at the Utilities. We were told he was to work with gas division and now are told he will work for the electric division. C. Lyke: Just to clarify our posting situation, at our last meeting, it was stated that 6 or 7 jobs had not been posted. Is this something we should be concerned about? Jay: Unless we have a complaint - obviously there were no complaints or I would have heard about it, if a complaint, I would have talked to someone about it. No complaints, therefore I would assume no one wanted the jobs. I don't believe we have a problem. C. Daggett: You're coming from Union standpoint - you are right as far as you are concerned, you do not have a problem. The Board feels we have a problem in this respect. If we are going to put new help on, we owe it to this Utilities to get the best qualified person in that job slot - you don't get it by looking at one person. We would prefer to see 6, 8, 10 applicants - and then pick a person that we feel might be the best qualified. In this case if it had been Alex's son, we would be happy to give him the job. 1 iiC/ C. Lyke: I definitely feel, in the future, job positions should be posted. Jay: My feelings are if anytir-ae a job comes up, make it easy and - not to say it is not correct by not posting - however, if someone would want it, they would complain. C. Lyke: 'Vie didn't hear of Dexter Klitzke's desire to change jobs until after the job was posted. (after 3 -11 -86 meeting) Jay: As far as I'm concerned, and nay members are concerned, the arrangement is satisfactory - no fault to find. As long as the employees were happy, the union was agreeable with position change and postings. Alex: Asked Jay Friedrichs if he felt -there was any anamosity over the hiring of Todd. Jay: No, however I haven't talked to everyone. C. Daggett: To follow that up I guess, Alex, I would like to ask you the question that after two special meetings, where most of the time was used in discussing you miring your son,, didn't you feel there was some opposition on this board regarding your hiring him? Alex: I don't think it was opposition to the hiring of Todd, the opposition was - or the argument was - that there was no ruling fro-ii the board frciii all the people is hired in the past; then suddenly the board is trying to get a resolution passed where no relatives could work for the Utilities. I think that is where the argLupient is - not because of Todd but the Board didn't want any relatives to work for the Utilities. C. Lyke: My main objection has been all along that we did not access the job market. "Butch" was welcomed to the meeting. C. Lyke: After discussing the change in personnel and hiring practice, asked "Dutch" if other applicants were considered before hiring Wm. Juaire. Butch: Applications on file were reviewed and a call to Jackson. Vocational School inquiring if any trained lineman were available. There were none. Having much faith in Wm. Juaire being a good potential for a future lineman, I hired him. -144 C. Lyke: I had made a telephone call to Jackson Vocational School today. Talking with Dale Snith I learned there were 20 qualified people for this position and, in fact, wanted to know if they should send applications. Also called Stan Heinz from Wadena Vocational School and he had experiei-iced people looking fcr work. These are people who have training, which it appears to me if you have a weak department, it e:ould make some sense to get people in with training, and he feels that the wage we are paying of $8.81 is a correct wage. Why are we hiring inexperienced people without at least going out and checking, instead of trying to work people in? Butch: I feel with the transfer of personnel we do not wind up with the most skilled people we would like to have. If I have failed to satisfy the general manager and this Commission, as far as I am concerned, both men are on a 90 day probation period and, as much as I would hate to ruin the credibility of speaking with those gentlemen when hired; I would say we should turn both loose. C. Daggett: Gentlemen, I feel the issue has been handled very poorly. I guess we have made our point - where we go from here is the next question. If the union contract means something, stick by it and if it doesn't have to be followed, please advise Cortaiiission so it can live accordingly. Jay: It should be followed and has been - everyone is satisfied. Jay and "Butch" were thanked for their comments. Ruth Hakel reported on the need for updating the Utilities computer equipment. Space for the accounts receivable program has become extremely limited - this being the most critical area. Correspondence from Charles Bailly Company relative to computer consulting services was reviewed by the Commission. A motion was made by Commissioner Lyke, seconded by Commissioner Beatty to contact Charles Bailly Company to have a representative review our equipment and determine our needs for capacity now and the future, also submit a firm quote for services. Motion was unanimously carried. Mgr. Alexander reported the master meter at Hutchinson Diversified Developers was installed August 1981. It was classified as a pressure compensated meter. When data input was reported to the office, an additional pressure factor of 1.652 was added - end result, incorrect consumption was calculated. At present time, the total credit has not been calculated - rough estimate $20,000. Mgr. Alexander will contact proper authorities. 1 �f Management Consultants March 27, 1936 Mr. Bud Daggett Hutchinson Utilities c/o Hutchinson Manufactu:..ing Box 479 Hutchinson, Mini,esot,i 55350 Dear Mr. Daggett: We at Hay Management Consultants are pleased to present this proposal to conOuct_ an organizational review for the Hutchinson Utilities. This type of review is a key step in improving the productivity of the Hutchinson Utilities. T have developed an ovf-rall project approach, from preliminary analysis to the final in;plementation phase. An a.1ternative to proceeding with the project in its entirety is to initially proceed only with Phase Gne, Review of the Current Situation. This will allow us to identify if there are major organizational issues to be addr <-ssed. If none are uncovered, we need not proceed with the remainder of: the project. If, however, we do find organizational i,Jsuels, the Commission can then determine if it wishes to proc(_.c,d wit!) the project_. Consulting fees for Phase One only are estimated. to be $2,500. We appreciate t he.. c,px)nrtu nit.y to describe how we would provide consulting assistance to you. We hope to demonstrate with the attached proposal. that Hay is capable of assisting you with this assignment and is the ]lest qualified manaclement consulting firm to provide the services you require. We look forward to discrossing this proposal with you. Please give me a call ii* you Ylavt_� an1.7 questions. Sincerely, Shi.rlt -.y D. K tzmann Associate SDK:tjt Enclosure HAY GROUP, INC. • TCF TOWER SUITE 1:318 • 121 S. 8TH STREET - MINNEAPOLIS, MN 55402 • (612) 339-0555 [I HAY Management Consultants nd,rns Minneapolis Minnesota This resort is confidential and tnte•nded solely for those deslg- (Imed by the clicnt to whom it is add tcssed. HUTCHINSON UTILITIES ORGANIZATION EFFECTIVENESS STUDY A[Ian[a Auckland RanrIona Bnmingham Il.nton Brunch (lucf— A[rn (.11gan' Calr I'-', Caracas Chad x[c Chicago ( "Iticlmlatl Columbus (AoPrnhagcn 1 1111a )ubhn 1)urhan 1).Mdor( East Landon fidmhurgh 1 :rank(urt Grnrsa Haldnx Hclstnkt Hong Kong Houston Johannesburg London I o Angcics L%'on \Iadrtd \ta nc hrs[e r \lcllx,urnc � Icxtco Crt�' \Stlano \ltllnl':l�K,I IS \1on[rrrc�' Uonncal \rw York N", adrlrJua ,. I'h, x•nts ('n[shurgh I',nt Fh.-A d, Rcgma ILO dr ,anetnl St. 1"n" 3.u1 Franaxo 4'atrlc Smoix,re S,:( d `1 net' lokro �.�I rei llt \'.l neon \'er \ \.l illllf (�fl't'k IX',vshui4am. D.C. \\`cllmy;ax, mound, Minneapolis Minnesota This resort is confidential and tnte•nded solely for those deslg- (Imed by the clicnt to whom it is add tcssed. HUTCHINSON UTILITIES ORGANIZATION EFFECTIVENESS STUDY HAYCONSUL ANTS Issues It is our under_staridinq that the Comin.issi_on of the Hutchinson Utilities wishes to proceed with a study designed to analyze and evaluate the strFlc.t.ur.i> <<nd c ffi- ci.er.cy of the organization. The commission believes the organization is not functioning at its optimum level and cjesirois an organ lzatlona1. review, which iden- tifies change:, ner<y ci for the III, tchinsc r, C1ti l ities to operate more efficiently �:nd effectively. Objectives Evaluating the above is >ui - +:;, Hay believes the objectives of the study to be as follows: r To determine if the Utilities is organized properly to allow achievement= of its operating objectives. To detericrine if the right resources are being employed to get the job done. - Act.ivit.i_cs focused on priorities People skills matched to positions o To determine appropriate staffing levels. The first objective pertains to the organization structure given the overall operational objectives of the Utilities. The second objective addresses the issue of ensuring that work with the highest priority is helinq carried out and that there is a solid match between the ��xills of the employees and the accountabili- ties of their positions. The last objective deals with the size of the organization:. It involves the determination of efficient ., staff levels for each area of the Utilities. Project-_ Approach Hay carries out a s11b: >t.,.1ntial number of organizational review assignments for a wide variety of organizations. Through those projects, Hay 11,35 dev('lopea a phrased approach which will meet the objectives for ± hr� ass �ignmer�t at_- the :iutchinson Utilities. The approach wi_ w ;_ 1 c c 1 i_�y is designed so that the underlying reasoning and logic o t��u resulting recommendations will be clear and easily cod. the diagram below gives an overview of our approach. It i li- vic?c�d into five distinct phases which build upon one <rnotli('r. I'he phases are d "`cribed in more detail below. OUR APPROACH — SASE V _._ PHASE IV _FHA_S_E_ I 1 HA F I I i ( F'HALF__I I I_ - - --- conunission Implement Review obtain F'scts l�V F>���'r��P (.,V1ew Improvements Cu V, 11 Through [ / Herominendations IY situation Interviews YY YMANAGEMENT CONSULTANTS Phase I - Review Cut-rent Si tuation r The first phase i ignt,(i t_o do -velop a thorough understanding of the circumstances and situation at the Hutchinson Utilities. This understanding will act. as a foundation for the balance of the project, enabling us to organize our work most effectively and allow us to develop a detailed work plan for the full project. This phase is carried out by meeting with several Commission members, as well as the General Manager. In these meetings, we will review the entire organization structure as it currently stands. This will allow us to identify which position each person occupies and reporting relationships for all positions. We will also seek to understand the cost structure of each area in terms of salary expense versus other key expense items. As part of these meetings, we would expect to gain valuable insights as to the history of cost and productivity management at the Utilities, as well as any current issues to which we must be sensitive, in carrying out the remainder of the project. Tile result of this phase will be a preliminary estimate of productivity improvements which we believe can be made. In addition, a full work plan for the remainder of the project will be developed from this phase. It will include the detailed tasks to be carried out, a schedule for their completion, and a list of individuals to be interviewed in the next phase of the project. Phase II - Obtain Facts Through Interviews The major portion of this phase is the collecting of information from line managers that is pertinent to structure and staffing matters. We propose to do this using a "team" of two people meeting with the individuals identified in the previous phase. The team will consist of a Hay consultant and a Hutchinson Utilities coordinator. The Hay consultant will guide the inter- views to ensure that relevant topics are completely covered. The coordinator will <ct::ively participate in the interviews and pro- vide background interpretation and commentary on the information collected. Although we will be responsible for ensuring proper content of the interviews, the Hutchinson Utilities representa- tive will play a valuable role in explaining the personalities involved and describing tho history leading up to the current situation. Typically, we limit the interview process to managers who are responsible for eight to twelve employees. This may need to be modified somewhat to F_. n:_ >t.ire all areas are covered at the Util- ities. The topic:; which wi.iI be discussed in these interviews include: • Verification of the current organization charts and staffing levels AYMANAGEMENT CONSULTANTS a • The ilitcrpretation of the role of the unit for which he /she is responsible • A descr ipti-on of the key accountabilities which the unit is expected to achieve • The services which the unit provides to other functions within the iJt:il_i.tie s • The services which the unit receives from other functions m A brief time analysis of the work demands of sub- ordinates, outlining activities carried out and their priorities Phase III - Develop Recommendations Through the interview process, we will determine what people are doing and how they are organized to do it. Using this knowledge we will design the most effective organization structure and support it with the most efficient staffing levels. We will communicate these recommendations to you in the form of both a detailed report and a presentation. We will address each area of the Utilities separately, develop complete organization charts for each and describe the needed staff levels. We will fully explain the logic of our recommendations, outline the alterna- tives considered and delineate the proposed changes. The project team, both the Hay consultant and Hutchinson Utili- ties coordinator, will have a role in formulating the recommenda- tions. It will be our responsibility to consider how other Utilities deal with similar problems and to complete the final recommendations and report. Phase IV - Commi_ssion Review We will present our recommendations to the Commission of the Hutchinson Utilities. The presentation will be an explanation of proposed improvements with a discussion of supporting facts and logic. The Commission will then have the opportunity to review and modify the recommendations, based on their knowledge and experience at the Utilities. Phase V - Implement The last phase of the project is to implement the improvements agreed upon. This will be undertaken largely by the Commission, although Hay will be available to provide any needed support. This phase is realize the intended to encompass all the steps agreed upon changes. Hay will provide necessary to a step -by -step approach to implementation and will recommend the assignment of HAYMANAGEMENT CONSULTANic accountabilities to ensur(., that the improvements are implemented and any review or monitorinq practices are established to guide the transition. Protect Staff The success of the assignmt�nt hinges on the approach taken in conducting it rind f,lw lwople i i,vo l_ved in carrying it out. Shirley Kitzmann, a consult,_int in the Minneapolis office, will complete the project as outlined above. 'She has experience in conducting organizational reviews and has performed other pro- jects in utility organizations. A resume is attached. Project Fees The investment we will ask the Hutchinson Utilities to make to carry out this project is in the form of consulting fees based on the time required to complete the work and the hourly rate of the consultant. All out -of- pocket or project - related direct expenses (travel, meals, graphics, report reproduction, computer or word processing, etc.) will be charged at cost. We estimate that the consulting fees for the project outlined above will be from $10,000 - $12,000. This is based on our best estimate of the time required to t)erform the work described in this proposal. Should actual time requirements be less than anticipated, you will charged only for the work performed. Included in the above estimate is a general administrative fee (telephone calls, :regular typing, regular mail, etc.) which is 9 percent of the cor�:�ulting fee. We expect the project will take about four weeks to complete, however, timing dopends on the av�iilribility of the Commission and other individuals to be interviewed. Consultinq Firm Oualifications Hay Management Consultants is a fully integrated management consulting firm. Our mission is to provide direction to manage- ment for improving organization effectiveness and performance through the implemk,ntition of workable strategies. With this purpose we provide, :;ervi_ce ; in the of pc >rfor,mance manage- ment, strategic jildNagei7uent, people r,'lanagemLnt and structure management. Performance management includes cost effectiveness programs and productivity improvement programs. Our planning process design and facilitation, corporate culture and strategic research servjc(,s are the main elements in the area or strategic management. Hay's job evaluation, compensation and performance appraisal services comprise the principle focus of people manage- ment. Structure management centers on organization design and development and accountability assignment services. All of these service areas link together to form an integrated approach to LI LI HAYCONSULTANTS N i d improving the overall effectiveness of corporations. We would draw upon every one of these bases of service to respond to your needs expressed in this assignment. As a summary and conclusion, the distinctive features which we present to you as Hay Management Consultants are as follows: ® The pragmatic and unique approach that we take to improving structure and cost performance blending sincere managerial involvement With the application of high -level consulting skills. ® The emphasis we put on mplementi_ng organizational improvement as opposed to simply reviewing and studying it. Y: t$� II SHIRLEY D. KITZMANN ASSOCIATE Shirley D. Kitzmann is an Associate Consultant with the Minnea- polis Office of Hay Management Consultants. Ms. Kitzmann has completed projects in practice areas of job evaluation, total compensation and organization strategy and design. Among her clients are firms such as Household Merchan- dising, K -Mart, Chesebrough- Pond's, American MedCenter's, First Bank System, Norwest Corporation, Minnesota Mutual Life, Owatonna Tool Company, Truth Inc. and the Minneapolis /St. Paul Metropolitan Waste Control Commission. Ms. Kitzmann's projects have included an analysis of human resources productivity in the retail industry, special compensation surveys and designing and developing communication strategies, in addition to her work in compensation consulting. Prior to joining Hay, Ms. Kitzmann was Manager of Employee Communications at B. Dalton Bookseller. She is experienced in employee opinion surveys and feedback programs, designing and implementing strategies for organization change, and in designing organizational communication strategies. In addition to B. Dalton, Ms. Kitzmann has held communications positions at 'Target Stores and National Car Rental System, Inc. Ms. Kitzmann holds a B.A. in Communications from the University of Wisconsin -Green Bay and an MBA from the University of Minne- sota. HAY MANAGEMENT CONSULTANTS SUITE 1318 - TCF TOWER 121 SOUTH EIGHTH STREET MINNEAPOLIS, MINNESOTA 55402 (612) 339 -0555 Savings for both entities on medical insurance for the year of 1985 was $37,018. 1985 - MEDICAL INSURANCE $57,393 - Premium savings to Hutchinson Utilities Commission based on 1984 comparison. (New York Life Insurance vs. Woodmen Accident and Life Company) 20,375 - Hutchinson Utilities Commission Co- insurance payments to employees $37,018 Net Savings After reviewing the Natural Gas contract, Mgr. Alexander commented that reducing our contract demand 15% would be detrimental and suggested perhaps a 5% decrease. Additional work will be required. If gas costs to Minnesota Mining & Mfg. (boiler usage) would be lowered by means of a special rate, it would increase our revenue and lower the price of gas to our customers. A motion was made by Commissioner Lyke, seconded by Commissioner Beatty authorizing management to negotiate cost of gas to Minnesota Mining & Mfg. during the months of May, J,,u.e, July, August, Scptemher and October. Motion was unanimously carried. Old Business: Commissioner Lyke asked about the status of a gas transportation rate. At present no rate has been established. Neva Business: President Daggett noted several references had been made in past minutes regarding services of a consulting firm for salary and position evaluation, etc. After researching several firms, a proposal was received from the Hay Management Consultants. (Proposal attached) The scope of a survey would include the Commission, manager, staff, data processing, etc. and not just one individual. The final intent would be to provide knowledge and guidance to the Commission and management in the future. A motion was made by Commassioner Lyke, seconded by Commissioner Beatty to engage the Hay Corporation to go ahead with Phase 1, as outlined in their proposal, and then determine if the Commission desires to go ahead with further services. Motion was unanimously carried. The following are February payables: 3 -H-a- FEBRUARY PAYABLES - ELECTRIC Woodmen Accident & Life Medical insurance 5,455.02 Petty Cash Office supplies 110.00 State Treasurer PERA withheld & expense 3,838.72 D.O.E.R. SS Ret. Div. FICA withheld & expense 4,009.18 Citizens Bank Federal tax withheld 4,615.16 Continental Assurance Co. Life insurance 200.90 Firstate Federal Savings Payroll deposit plan 2,855.19 First National Bank Payroll deposit plan 1,734.72 Citizens Bank & Trust Payroll deposit plan 5,387.00 Putnam Fund Dist. Employee deferred comp withheld 25.00 ICMA Retirement Employee deferred comp withheld 1,050.00 American Family Life Life insurance withheld 128.40 Citizens Bank & Trust Deposit to Contribution Account 25,000.00 Citizens Bank & Trust Deposit to Bond & Int. Pay't Acct 55,258.33 Colonial Life & Accident Employee insurance withheld 180.90 Hutch Utilities Employee utility bills withheld 820.00 IBM Corp. Maint. service 505.50 MMUA Dues 5,000.00 Natural Gas Division Due to Natural Gas Division 591,414.68 accounts receivable Richard Peterson Legal retainer 400.00 Petty Cash Office supplies - postage 835.62 Continental Assurance Co. Life insurance 47.30 Phyllis Klennent Meter refund & interest 25.86 Richard Szekeresh 2.80 Alice Neubarth 10.21 Art Benson 1.73 Petty Cash 331.50 Christine Otterstatter Refund - overpayment 51.15 James Slyter Refund - overpayment 57.51 Border States Electric Inventory 4,928.00 Burmeister Electric Inventory 2,829.60 Ditch Witch of MN Power operated equipment maint. 524.03 Fresco Line maint. 34.68 IBM Corp. Lease 482.00 Total Tool Tools 59.24 McLeod County Welfare Refund - overpayment 85.00 Midwest Gas Assn. Employee insurance withheld 26.00 Zee Medical Service Supplies 180.00 Graybar Electric Co. Mdse. 18.47 Floor Care Supply Supplies 32.68 Anderson Chemical Co. Inventory 65.18 MMUA Registration 120.00 Petty Cash Office supplies, gas, plant supplies 216.64 Security - Connecticut Life Life insurance 124.35 Firstate Federal Savings Payroll deposit plan 2,932.83 First National Bank Payroll deposit plan 1,410.67 Citizens Bank & Trust Payroll deposit plan 4,752.09 ICMA Retirement Corp. Employee deferred comp withheld 1,059.00 Putnam Fund Dist. Employee deferred comp withheld 25.00 PERA PERA withheld & expense 3,763.84 lA)V FEBRUARY D.O.E.R. SS Ret. Div. - ELECTRIC (cont) FICA withheld & expense 3,750.00 Commissioner of Revenue State tax withheld 4,026.83 Citizens Bank & Trust Federal tax withheld 4,476.09 Randy Blake Utility bill withheld in error 20.00 Erickson Oil Products Gas 55.34 Petty Cash Plant supplies, office supplies, 105.50 meeting expense Schwanke Tractor & Truck Power operated equip. maint. 326.50 General Trading Co. Mdse., plant supplies, equip. 1,987.33 maint., eng. maint. #4 Border States Electric Inventory, mdse. 17,705.08 Graybar Electric Plant supplies 119.76 United Electric Plant maint. 38.03 MN Electric Supply Mdse., supplies 43.93 Vermeer Sales & Service Power operated equip. maint. 119.17 Hutchinson Telephone Co. Telephone 1,402.23 Slyter Builders Building maint. 42.00 Daniel Timm Meter refund & Interest 21.20 Vera Swanson 21.30 Jeff Pasco 21.20 Harriet Nordin 21.30 Mary Jane Lint 21.30 Marion Kahl 21.30 Martin Gerald 21.30 Lee Fratzke 21.20 Terry M. Davis 21.30 Kelly Barclay 42.40 Wayne Anderson 21.30 A & B Electric Line maint. 18.93 Allen Office Products Office supplies 212.63 American Business Forms Office supplies 112.00 American Linen Supply Co. Laundry 44.09 American Welding Supplies Plant supplies 45.18 Anderson Interiors Building maint. 363.13 Associated Consultants Engineering fees 138.75 Brandon Tire & Auto Truck maint. 4.00 Burmeister Electric Line expense 66.61 C & I Repair Equipment maint. 41.43 City of Hutchinson Water bill 211.02 City of North St. Paul Inventory 100.00 Coast. to Coast Plant supplies, bldg. maint supplies 73.63 Commissioner of Revenue Sales tax 20,255.64 Copy Equipment Office supplies 79.23 Earl's Welding /Industrial Plant supplies 34.65 Family Rexall Drug Office supplies 13.35 Farm & Home Distributing Supplies, other equip. maint. 34.02 Fireman's Fund Insurance Employee insurance withheld 98.08 Fitzloff Hardware Supplies 6.13 G.T.C. Auto Parts Power operated equip. maint. 124.38 Great Plains Supply Building maint. 43.47 H & C Electric Supply Mdse. 27.15 i J 5 FEBRUARY Home Bakery - ELECTRIC (cont) Cookies 168.48 Hutchinson Co -op Supplies 5.00 Hutchinson Leader Advertising 215.95 Hutch Snyder Drug Film 14.07 Hutch Util - Emp. Fund Employee fund withheld 93.00 Hutch Utilities Labor 5,217.43 11,103.49 Elec & Gas 5,886.06 usage Hutch Wholesale Supply Plant supplies, mdse., power 93.06 operated equip. maint. IBEW Local 949 Union dues withheld 457.75 Johnson's Super Valu Coffee 233.58 Kemske Paper Co. Office supplies 31.32 Lakes Gas Co. Gas 140.28 Leef Bros., Inc. Laundry 41.92 McLeod County Landfill Dumping charge 10.00 McMaster -Carr Supply Plant supplies 124.86 Mankato Business Products Office supplies 62.88 MN Benefit Assn. Employee insurance withheld 10.00 Northern States Supply Supplies, tools 194.85 Oleson Chain & Cable Co. Supplies 356.38 Paper Service Co. Plant supplies, mdse. 172.11 Petersen - Wisdorf, Inc. Inventory 311.40 Plaza Hardware & Gifts Bldg. maint., supplies, truck maint. 46.48 Powertronics, Inc. Transformer maint. 63.55 Quade Electric Street light maint. 4.21 Quill Corp. Office supplies 194.16 Rutz Plumbing & Heating Bldg. maint., equip. maint. 184.30 Simonson Lumber Bldg. maint., equip. maint. 648.53 UPA Station equipment maint. 500.63 Velvet Coach, Inc. Meeting expense 91.04 Welders Supply Co. Plant supplies 18.50 WESCO Mdse., inventory 403.25 Wigen Chevrolet Truck maint. 7.80 Williams Steel & Hardware Plant supplies 36.77 Zep Manufacturing Plant supplies 170.00 Dale Sturges Snow plowing 585.00 Erickson Oil Products Gas 23.00 Junker Sanitation Service Refuse service 81.00 UPA Purchased power 485,159.48 Medical Insurance 2,293.62 FEBRUARY PAYABLES - GAS Hutchinson Utilities Payroll deposit plan 2,913.58 State Treasurer PERA withheld & expense 974.76 D.O.E.R. SS Ret. Div. FICA withheld & expense 854.76 Citizens Bank & Trust Federal tax withheld 1,046.30 Putnam Fund Dist. Employee deferred comp withheld 100.00 ICMA Retirement Corp. Employee deferred comp withheld 300.00 FEBRUARY - GAS (cont) Continental Assurance Co. Life insurance 79.41 Continental Assurance Co. Life insurance 18.70 American Meter Company Inventory 1,130.32 Apollo Piping Supply Inventory, supplies 151.22 Dresser Measurement Div. Inventory 1,151.57 American Family Life Employee insurance withheld 50.80 Colonial Life & Accident Employee insurance withheld 39.00 Ralph's Garage Truck maint. 46.16 Firstate Federal Savings Deposit to C/D Account 500.00 State Treasurer Employee insurance withheld 9.00 Midwest Gas Assn. Employee insurance withheld 21.66 First National Bank Deposit to savings 100,000.00 Putnam Fund Dist. Employee deferred comp withheld 100.00 ICMA Retirement Corp. Employee deferred comp withheld 300.00 Hutch Utilities Payroll deposit plan 2,403.68 D.O.E.R. SS Ret. Div. FICA withheld & expense 921.54 Commissioner of Revenue State tax withheld 934.69 Citizens Bank & Trust Co. Federal tax withheld 1,026.81 PERA PERA withheld & expense 892.35 American Meter Co. Inventory, meter maint. 3,761.10 American Welding Supplies Supplies 20.12 Farm & Home Distributing Supplies 13.18 Fisher Controls Inventory 1,184.66 G.T.C. Auto Parts Power operated equipment maint. 62.20 Gas Supply, Inc. Maint. of production equipment 3,838.86 Hutch Iron & Metal Supplies 4.00 Hutch Leader Advertising 143.96 Hutch Town & Country Tire Truck maint. 4.00 Hutch Util - Emp. Fund Employee fund withheld 21.00 Hutch Utilities Usage peak shaving, labor 3,663.63 Hutch Wholesale Supply Truck & power operated equip. 77.22 maint., supplies IBEW Local 949 Union dues withheld 120.25 Lakes Gas Company Gas 86.12 Minvalco, Inc. Supplies 19.44 Northern States Supply Supplies 77.93 Plaza Hardware & Gifts Supplies 17.18 Yellow Freight System Freight 84.57 General Trading Co. Supplies, power operated equip. 185.76 maint. Ronald Swenson Supplies 20.00 Apollo Piping Supply Inventory, supplies 273.90 Hutchinson Utilities Due to Municipal Electric Plant 14,136.08 February expenses Erickson Oil Products Gas 11.50 1 1 .--� V FEBRUARY - GAS (cont) Energy Economics, Inc. Meter expense 125.00 Circle -Hutch Utility Purchased power 518,446.85 Midwest Gas Assn. Meeting expense 250.00 Hutch Utilities Employee utility bills withheld 490.00 Medical Insurance 846.00 There being no further business, a motion was made by Conmlissioner Lyke, seconded by Commissioner Beatty to adjourn the meeting at 3:59 p.m. Motion was unanimously carried. ATTEST.. E. ­1 Daggett , 0 ident I r