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04-28-1986 HUCMiii 157 Monthly Meeting April 28, 1986 All Commissioners were present, also present were Mgr. Alexander, Counsel Peterson, Jane Hodgins, Hutchinson Leader staff writer and Ruth Hakel. President Daggett called the meeting to order at 1:00 p.m. The March 31, 1986 and minutes of the special meeting dated April 21, 1986 were reviewed. Motion was made by Commissioner Lyke, seconded by Commissioner Beatty to accept the minutes with the noted changes as discussed. (Last paragraph page 115 - delete payables and substitute financial statements. Page 147, item 5 - delete resolving and substitute dissolving.) Motion was unanimously carried. President Daggett welcomed Tony Rude, Assistant General Manager of United Power Association, and Ivan Larson to the meeting_ Tony Rude was asked to bring the Commission "up to date" as to where United Power Association stands with the Manitoba Hydra and what United Power Association's expectations are in the future. United Power Association is in the midst of preparing and negotiating three (3) documents with the Canadian Government: 1. Participation Power Agreement 2. Companion Agreement (Diversity Power) 3. Interconnection Agreement 4. Facilities Agreement Facilities built in Canada - Canadians will bear the cost. In U.S. - a facility, such as transmission line - cost will be shared by the participants of this power. All above agreements should be ready about September 15, 1986 for signature by participants. A Certificate of Need Permit will then be obtained from the states to build a transmission line followed by a Construction Permit from Minnesota Environmental Quality Board, lastly a Presidential Permit from federal government to import electricity. Should the Hutchinson Utilities Commission own a portion of the transmission line, wheeling would not be charged. 1 �$- I _-3 Integrated Transmission Agreement deals with transmission in just this area. To participate in the Agreement would alleviate any local wheeling. The kind of transmission line has not been determined at this time - whether it would be AC or DC. The State of Minnesota had a panel of seven scientists hold an evaluation of DC transmission line, concluded there are no ill effects from this type. Whether AC or DC transmission line is to be built, there will be opposition. Yet they are essential to our ecomony in order to have a competitive supply of power. Transmission line is scheduled to be built in 1994 or 1995. This is after proper permits are in hand from the State. Then the Canadian Government will be assured of going ahead with the generating facility. Permit costs would be the Utilities present cost. The generating capacity of the Nelson River project would be 1100 megawatts, with 850 megawatts directed to Minnesota. Generating facility to be built by Canada - with a take or pay contract from participants. Looking into the future, United Power Association is considering building a large generating facility in Minnesota (with joint ownership) to be completed by late 1990's. From the time of obtaining a permit to completion, it would take approximately 10 years to build a generating plant. No new technology has been developed to lower the cost of generation. Commissioner Lyke asked if Tony Rude would care to comment on the power agency issue - SMPPA. 1. Opportunity to get started into some independence of a power supply 2. Little money "up front" 3. Be able to negotiate for better power supply contract 4. Hutchinson, because of size and leadership, could provide leadership President Daggett thanked Tony Rude for enlightening the Commission on subjects of which he is well versed. Two representatives of the McLeod County Historical Society, Carol Haukos and Patsy Prieve, appeared at the meeting to request some form of donation from the Utilities toward the planned Historical 1 Society Heritage Center. 1. Donation toward building fund 2. Utility rate (preferential) 3. Annual operation contribution President Daggett thanked the representatives and stated, from a legal standpoint, it may be difficult to make a contribution toward this fine Hutchinson addition being the Utilities is bound by the City Charter. Counsel Peterson was instructed to research the issue and bring a decision to the Commission. The March payables for both entities were discussed. 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. A motion was made by Commissioner Beatty, seconded by Commissioner Lyke to accept the financial statements. Motion was unanimously carried. Mgr. Alexander reviewed the March quarterly budgets. Commissioner Lyke inquired as to the sources from which we derive our Misc. Income. It represents revenue received for materials billed, labor and truck time - usually billed to City of Hutchinson and the City of Brownton. Management was instructed to review the truck hourly rate, possibility of a contractual arrangement, also obtain a letter from Dennis Potter regarding insurance. Motion was made by Commissioner Beatty, seconded by Commissioner Lyke authorizing management to charge off electric in the amount of $1,013.62 and gas in the amount of $335.08, totaling $1,348.70, detailed listing on pages 1284E and 521G of the April general journal. Motion was unanimously carried. Mgr. Alexander reviewed the Midwest Vision Center safety glass program. Dennis Riedel has had difficulty in being fit with glasses from Midwest. He purchased a pair from Dr. Juffers in the amount of $77. The Utilities allows $50 for prescription bifocal glasses. It was moved by Commissioner Beatty, seconded by Commissioner Lyke to issue a check in the amount of $50.00 to Dr. Juffers and the employee to pay the balance. Motion was unanimously carried. Concensus of opinion was to maintain the present safety glass policy. Mgr. Alexander reported correspondence had been received from Developers Diversified in which they indicated accrued interest be paid at the time of settlement. 1 I-roa / � /. Motion was made by Commissioner Beatty, seconded by Commissioner Lyke instructing Mgr. Alexander to write a letter enclosing a check in the amount over billed with no interest added. Motion was unanimously carried. Charles Bailly & Company proposal for computer equipment was discussed. It was suggested that Mgr. Alexander call several utilities and find the brand of equipment being used, also if programs are in -house or a purchased package and to report back to the Commission. New Business: President Daggett related to the manager hiring his son and felt a few things should be reviewed. The meeting was open for discussion. Commissioner Lyke wondered if Butch shouldn't be present to explain why in our last minutes there had been several switches made and now this is not the case. Mgr. Alexander explained how this came about - Bill Marquardt and Wally Hombach came to his office with a suggestion that it would be better to wait until fall to make the switch. It would mean Dexter would not be transferred during the busiest season, likewise Norm Bohn. Butch was called in and the four individuals discussed the issue and at that point, Butch agreed to leave it as proposed. Question came up about Norm Bohn and the National Guard. A call was made to Headquarters and it was learned if Norm's schedule would be sent to Headquarters, National Guard would work around it. President Daggett asked Mgr. Alexander who made the decision to hire Todd. Mgr. Alexander told Butch if we were going to put someone on, he would like to have Todd put on. Butch stated - in essence, that is what he said. We didn't discuss it a long time. He said Todd is looking for work and that Mgr. Alexander had said the guys in the crew seem to feel, in the summer, that Todd had been working out well. Rufus would like to put Todd on the gas division. Commissioner Lyke asked Butch if he felt he had a choice where Todd was concerned. Gentlemen, you have to understand that I have a degree of loyalty to the general manager that when he enters my office and expresses a desire to employ a person and feels strongly about that person, I can only assume the general manager has weighed that decision and I based a lot of weight on the decision that Alex made at that point. We did not discuss it a long time. Mgr. Alexander - Butch hired Todd but he hired him on my recommendation. After further discussion, President Daggett definitely felt he would recommend to the Hay Management that a policy for hiring be implemented. Commissioner Lyke also suggested an Operational Manual. Commissioner Lyke asked Butch to update the Commission on the comparable worth study. The following are March payables: u 1 /3,) --1-6-1- 1 1 1 MARCH PAYABLES - ELECTRIC American Family Life Petty Cash Frank Dorsey Mark Bastian Jean Greene Petty Cash Gloria McKimm U.S. Postal Service Petty Cash First National Bank Firstate Federal Savings Citizens Bank & Trust PERA D. O. E. R. SS Ret. Div. Citizens Bank & Trust Putnam Fund Dist. ICMA Retirement Corp. Motor Vehicle Dept. Woodmen Accident & Life Continental Assurance Co. Continental Assurance Co. American Payment Centers Citizens Bank & Trust Citizens Bank & Trust Colonial Life & Accident Hutch Utilities IBM Midwest Gas Assn. MN Environmental Quality BD MN Electric Supply Co. Natural Gas Division Northern States Supply Petersen - Wisdorf, Inc. Richard Peterson Scientific Columbus Vermeer Sales & Service WESCO City of Hutchinson Miller Sales IBM MN Electric Supply Graybar Electric Co. H & C Electric Supply Burlington Northern RR Vermeer Sales & Service Four Seasons Services John Henry Foster MN Williams Steel & Hardware L. Wilson Power Corp. IBM Corp. Employee insurance withheld Postage Meter refund & interest Meter refund & interest Meter refund & interest Meter refund & interest Refund - overpayment Stamps Expenses - meter school Payroll deposit plan Payroll deposit plan Payroll deposit plan PERA withheld & expense FICA withheld & expense Federal tax withheld Employee deferred comp withheld Employee deferred comp withheld Trailer licenses Medical insurance Life insurance Life insurance Rent Deposit to Contribution Account Deposit to Bond & Interest Acct. Employee insurance withheld Employee utility bills withheld Lease Employee insurance withheld Power plant siting assessment Mdse. Due to Natural Gas Division Accounts Receivable Supplies, tools Inventory Legal retainer Inventory Power operated equip. maint. Inventory Contribution Plant supplies Maint. service i r'7 J � 128.40 835.06 35.12 10.20 13.24 837.31 55.18 110.00 114.21 1,153.09 2,961.48 4,464.84 3,840.29 3,951.34 4,674.02 25.00 1,059.00 145.75 5,455.02 54.80 232.67 64.00 25,000.00 55,258.33 180.90 800.00 482.00 26.00 1,003.18 45.08 569,837.86 190.83 73.30 400.00 13,772.62 70.46 3,163.2_0 75,000.00 22.73 505.50 Mdse., inventory, street light maint 124.21 Inventory 344.58 Supplies 38.52 Lease 25.00 Power operated equip. maint. 47.83 Cup inserts 39.80 Plant supplies 44.52 Plant supplies, tools 116.28 Maint. transformer 2,500.00 Maint /lease 54.00 CIA- MARCH - ELECTRIC (cont) Amoco Oil Co. Electronic Center, Inc. MN Electric Supply Co. ICMA Retirement Corp. Putnam Fund Dist. Citizens Bank & Trust Commissioner of Revenue D. 0. E. R. SS Ret. Div. PERA Associated Consultants First National Bank Firstate Federal Savings Citizens Bank & Trust United Electric Company MN Electric Supply Co. Schaeffer Mfg. Co. Rufus Alexander G. T. C. Auto Parts General Trading Co. Hutchinson Medical Center Hutchinson Telephone Co. MN Electric Supply Co. Petty Cash McMaster -Carr Supply Great Plains Supply United Building Centers Sterling Electric Co. Electronic Center, Inc. H & C Electric Supply MN Benefit Assn. Patricia Becker Cheryl Buschmann Steve Forcier Robyn Forslin Lindgren Robert Hennen Jay A. Johnson Bruce Killam Edward J_ Kival Marvin Krueger Cindy Lhotka Rodney Olson Linda M. Reinke Kevin Roseman Joseph Rupp Jeeve Seevaratnan Kathy Suess Scott Thorsen Paula Troldahl Allen Office Products American Linen Supply Gasoline Building maint. Plant supplies Employee deferred comp withheld Employee deferred comp withheld Federal tax withheld State tax withheld FICA withheld & expense PERA withheld & expense Engineering fees Payroll deposit plan Payroll deposit plan Payroll deposit plan Plant supplies, bldg. maint., tools Plant supplies Oil Meeting expense - MMUA Truck maint., plant supplies Plant supplies, tools, truck maint. Physicals Telephone Mdse., plant supplies Meter deposit & int., office supplies, bldg. maint. Plant supplies Bldg. maint. Bldg. maint. Mdse. Plant supplies Mdse. Employee insurance withheld Meter deposit,& interest Office supplies Laundry 5,729.17 8.26 129.42 1,059.00 25.00 4,546.40 4,067.95 3,861.02 3,790.55 5,254.50 1,304.09 3,145.88 4,502.29 194.59 24.46 263.54 74.99 45.29 312.64 102.00 1,360.33 81.80 201.82 25.70 431.20 59.25 420.04 45.75 163.30 10.00 42.60 42.40 42.40 21.30 42.40 42.60 21.30 42.40 42.40 21.20 42.40 21.30 21.30 42.60 21.20 21.30 21.20 21.20 47.56 50.01 l I 1 MARCH - ELECTRIC (cont) Amoco Oil Co. Associated Consultants Charles Bailly & Company Brunner Sales Carburetion & Turbo Sys. Carr Flowers Central Eyewear Commissioner of Revenue Compressor Services LTD Control Data Bus. Advisor Copy Equipment, Inc. Culligan Water Conditioning Dostal & Oleson Oil Co. Earl's Welding /Ind. Supply Ekstrom Industries, Inc. Family Rexall Drug Farm & Home Distributing Fireman's Fund Amer. Ins. Fresco Home Bakery Hutch Fire & Safety Hutch Util - Emp. Fund Hutch Utilities T & R Electric Supply Scientific Columbus Petersen - Wisdorf, Inc. IBEW Local 949 Ink Spots, Inc. Lakes Gas Co. Lanick & Liljegren Leef Bros., Inc. Mankato Business Products W. P. & R. S. Mars Co. MN Valve & Fitting Co. Newark Electronics Otter Tail Power Co. Paper Service Company Power Supply & Engineering Robertshaw Controls Co. Rockite Silo Sears The Standard Register Co. UPA Upper Midwest Sales Co. The Velvet Coach Inn Orvis Wahl Welders Supply Co. Gas Engineering fees Audit Supplies Truck maint. Bldg. maint. Safety glasses Sales tax Supplies Office expense Office supplies Plant supplies Plant supplies Plant supplies Meter maint. Office supplies Plant supplies, street ligh t supplies Employee insurance withheld Supplies Cookies Extinguisher maint. Employee fund withheld Labor 3,824.27 Plant - elec 2,618.88 UC - elec 1,689.15 Inventory Inventory Inventory, line maint. Union dues withheld Office supplies Gas Transformer maint. Laundry Office supplies Tools Supplies Radio maint. Testing of Equipment Plant supplies Supplies Engine maint. #3 & #4 Grounds maint. Plant supplies Office supplies Station equipment maint. Plant supplies Meeting expense Bldg. maint., power operated maint. Plant supplies / 3 C/ '�- 35.27 1,391.75 5,050.00 19.80 20.35 10.95 53.00 19,102.22 119.25 54.00 134.16 12.15 20.50 29.75 1,845.90 5.13 maint., 57.23 98.08 33.58 176.04 65.10 94.50 8,132.30 520.00 4,066.20 1,121.94 457.75 114.10 131.77 171.40 34.76 82.96 59.05 100.12 136.97 67.21 176.42 221.35 43.52 5.90 40.26 1,012.01 311.40 69.38 17.00 equip. 366.25 15.50 _Vg6r- / y MARCH - ELECTRIC (cont) West Central Industries WESCO Zep Mfg. Co. City of Hutchinson Johnson's Super Valu UP A American Welding Supplies Amoco Oil Co. Brandon Tire Brown's Floral Case Power & Equipment Coast to Coast Ed Davis Business Machines Erickson Oil Products Fabricare Cleaners Fitzloff Hardware Hutchinson Leader Hutch Wholesale Supply Junker Sanitation Service L & P Supply Plaza Hardware & Gifts Schramm Implement Schwanke Tractor & Truck Simonson Lumber Sorenson Farm Supply W.D. Cooling Clinic Medical Insurance Overhead line expense Mdse. Plant supplies Insurance Coffee Purchased Power Plant supplies Gas Equipment maint. Supplies Power operated equip. Plantsupplies, bldg. Office supplies Gas Laundry Bldg. maint. 23.55 87.20 65.00 11,910.45 178.15 486,653.52 198.83 41.06 65.42 33.67 maint. 329.68 maint., grds. 242.82 71.42 31.96 178.50 11.52 26.40 power 421.62 bldg. maint. Advertising - bids Plant supplies, truck & operated equip. maint., Refuse service Equipment maint. Plant supplies, bldg. Equipment maint. Equipment maint. Plant supplies, bldg. Power operated equip. Power operated equip. MARCH PAYABLES - GAS Colonial Life & Accident Firstate Federal Savings Hutch Utilities Midwest Gas Assn. State Treasurer Vermeer Sales & Service American Family Life PERA D. 0. E. R. SS Ret. Div. Citizens Bank & Trust Co. Hutchinson Utilities Putnam Fund Dist. ICMA Retirement Corp. First National Bank Continental Assurance Co. Continental Assurance Co. Hutchinson Utilities PERA D. O. E. R. SS Ret. Div. Commissioner of Revenue maint. maint. maint. maint. Employee insurance withheld Deposit to C/D Account Employee utility bills withheld Employee insurance withheld Employee insurance withheld Power operated equip. maint. Employee insurance withheld PERA withheld & expense FICA withheld & expense Federal tax withheld Payroll deposit plan Employee deferred comp withheld Employee deferred comp withheld Deposit to Inc. Pricing Acct - Int Life insurance Life insurance Payroll deposit plan PERA withheld & expense FICA withheld & expense State tax withheld 81.00 42.05 253.83 149.44 47.00 508.66 16.19 50.60 2,262.59 39.00 500.00 500.00 21.66 9.00 50.62 22.10 748.69 882.12 1,136.75 2,224.03 100.00 300.00 918.33 11.20 47.64 2,153.88 732.30 853.68 927.37 L 1 I 1 1 1 / y/ 437 MARCH - GAS (cont) Citizens Bank & Trust Federal tax withheld 903.04 Putnam Fund Dist. Employee deferred comp withheld 100.00 ICMA Retirement Corp. Employee deferred comp withheld 50.00 Minvalco, Inc. Supplies 9.60 Vermeer Sales & Service Power operated equip. maint. 108.98 North Star Gas Products Supplies 61.57 American Meter Co. Meter maint. 10.09 MMUA Registration 60.00 R. G. Read & Co. Inventory 531.69 North Star Gas Products Inventory 2,315.70 Energy Economics Inventory 1,431.50 Hutchinson Utilities Due to Municipal Electric Plant 14,119.37 March expenses G.T.C. Auto Parts Power operated equip. maint. 26.17 The Standard Register Co. Office supplies 216.76 City of Hutchinson Consultant fee - insurance 141.01 Schaeffer. Mfg. Co. Oil for trucks 131.77 Graybar Electric Co. Mains & service expense 361.80 Apollo Piping Supply Supplies 84.77 Gary Clyne School expense 70.00 General Trading Co. Supplies 71.43 Apollo Piping Supply Inventory 262.47 Charles Bailly & Co. Audit 3,350.00 Carburetion & Turbo System Truck maint. 40.71 Compressor Services, LTD Supplies 119.24 Farm & Home Distributing Supplies 55.00 Groebner & Associates Laboratory equipment 3,788.00 Hutch Util - Emp. Fund Employee fund withheld 21.00 Hutch Utilities Labor, peak shaving plant usage 5,323.44 IBEW Local 949 Union dues withheld 120.25 Jacobs Tool Co. Power operated equip. maint. 75.01 Krasen Plumbing & Heating Supplies 4.75 Lakes Gas Co. Gas 85.28 Power Supply & Engineering Meter maint. 29.93 Schlauderaff Implement Power operated equip. maint. 60.96 Orvis Wahl Power operated equip. maint. 47.50 Welders Supply Co. Supplies 4.50 West Central Industries Mains & service expense 23.55 American Welding Supplies Supplies 54.83 Brandon Tire Power operated equip. maint. 54.05 Case Power & Equipment Power operated equip. maint. 989.02 Circle -Hutch Utility Purchased gas 374,287.48 Coast to Coast Erickson Oil Products Hutchison Co -op Hutch Wholesale Supply Plaza Hardware & Gifts Medical Insurance MARCH - GAS (cont) Supplies 12.23 Gas 13.62 Supplies 7.50 Power operated equip. maint., 66.25 supplies Supplies 79.12 104.00 There being no further business, a motion was made by Commissioner Lyke, seconded by Commissioner Beatty to adjourn at 4:13 p.m. ATTEST' J .. E. Daggett, JJsident �omas B. Lyke, Secrp,�ary 1 1