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09-28-1987 HUCM0 Regular Meeting September 28, 1987 All Commissioners were present; also present were Mgr. Hakel, Counsel Peterson, Jane Hodgins, Hutchinson Leader staff writer and Sue Winter. President Daggett called the meeting to order at 1:05 p.m. and appointed Mgr. Hakel as acting chairman to conduct the election of officers. Nominations were requested for President. Commissioner Beatty nominated Commissioner Daggett for President. There being no further nominations, Commissioner Daggett was duly elected and declared President of the Hutchinson Utilities Commission. Nominations were requested for Vice President. Commissioner Lyke nominated Commissioner Beatty for Vice President. There being no further nominations, Commissioner Beatty was duly elected and declared Vice President of the Hutchinson Utilities Commission. President Daggett dismissed Mgr. Hakel and resumed the chair. The next order of business was to appoint a Secretary. A motion was made by Commissioner Daggett, seconded by Commissioner Beatty to appoint Commissioner Lyke as Secretary of the Hutchinson Utilities Commission. Motion was unanimously carried. A motion was made by Commissioner Daggett, seconded by Commissioner Beatty to appoint Commissioner Lyke to the planning commission. Motion was unanimously carried. A motion was made by Commissioner Daggett, seconded by Commissioner Lyke to appoint Sue Winter Recording Secretary /Assistant Secretary. Motion was unanimously carried. The next order of business was to appoint legal counsel. A motion was made by Commissioner Lyke, seconded by Commissioner Beatty to appoint Richard Peterson legal counsel for the Hutchinson Utilities Commission. Motion was unanimously carried. A motion was made by Commissioner Beatty, seconded by Commissioner Lyke to designate the following depositories for Utility funds: C. J 1 r Citizens Bank & Trust Company First National Bank First Bank of Minnesota Minnesota Federal Savings & Loan Association Motion was unanimously carried. The minutes of August 31, 1987 special meeting were reviewed. A motion was made by Commissioner Beatty, seconded by Commissioner Lyke to accept the minutes as written. Motion was unanimously carried. The August payables for both entities were discussed. A motion was made by Commissioner Lyke, seconded by Commissioner Beatty to accept the payables as presented. Mgr. Hakel presented an account for costs line (ITA Agreement) made by Commissioner establish an ITA 0 & $100,000. Motion wa the August financial statements. Establishing for maintenance and taxes for transmission was discussed. After discussion, a motion was Lyke, seconded by Commissioner Beatty to M reserve account with an initial amount of unanimously carried. Roger Dummer was welcomed to the meeting. Renewing Contract for Deed (property located on lot 6 & 7, Park Subdivision, City of Hutchinson) was discussed. A 10 °0' 15 year contract for Deed and also variable interest rates were discussed. Counsel Peterson will check if the contract can be renewed. Mgr. Hakel, Counsel Peterson and Roger Dummer were instructed to work out the details and report back to the Commission. Correspondence has been received from Robins, Zelle, Larson & Kaplan regarding the Curtiss - Wright lawsuit. Mgr. Hakel was instructed to contact Robins, Zelle, Larson & Kaplan stating the Commission would agree to settle (at this point) for $530,000. Duane Day of Reflections, Inc. and Wally Hombach were welcomed to the meeting. Reviewed plans for refacing the Utility Center. The Commission agreed on a plan and instructed the architect to write specifications. A policy on purchasing was presented (copy attached). A motion was made by Commissioner Beatty, seconded by Commissioner Lyke to adopt the purchasing policy. Motion was unanimously carried. n r HUTCHINSON UTILITIES COMMISSION Policy on Purchasing State Statute 471:345 Hutchinson Utilities Commission hereby adopts a general policy on the purchasing of equipment, supplies, and services. All purchases shall require a written requisition and purchase order number given by the utility office. No employee shall purchase any item without supervisor permission. Emergency situations may require a deviation from this policy to insure electric and /or natural gas services to the customers of the Hutchinson Utilities. Joint purchasing of materials, supplies, and services shall be considered with other departments only when net economic benefits can be seen. When a tie exists between low bids, preference will be given to a local supplier. For purchases when the estimate is more than $10,000: 1. The Hutchinson Utilities Commission will request permission to advertise for bids. 2. Specifications shall be made available to all prospective bidders. 3. Bids will be opened at a public bid opening. Date will be set in the advertisement for bids. 4. The staff will review bids and recommend to the Hutchinson Utilities Commission to accept the lowest responsible bidder meeting specifications. 5. Hutchinson Utilities Commission will enter into a contract with the lowest bidder. For purchases between $5,000 and $10,000: 1. The Hutchinson Utilities Commission staff will solicit written, informal quotations from at least two suppliers and tabulate the results. 2. Staff will recommend acceptance of the lowest quote. For purchases less than $5,000: 1. The staff will solicit informal quotations from at least two sources. 2. The General Manager and Administrative Director shall have the authority or delegate the authority to authorize acceptance of the lowest bidder. Mgr. Hakel informed the Commission that Shirley Kitzmann of Hay Group reviewed Hutchinson Utilities policies. Ms. Kitzmann felt "immediate family" should be defined in procedures for hiring staff and hourly personnel. These two policies will be rewritten and presented to the Commission. A motion was made by Commissioner Beatty, seconded by Commissioner Lyke to authorize staff to purchase spot gas for interruptible customer's usage as a replacement of #6 oil for boiler fuel. Motion was unanimously carried. Minnesota Municipal Utilities Association's fall meeting will be held in Minneapolis on October 21 -23, 1987. A motion was made by Commissioner Lyke, seconded by Commissioner Beatty to authorize the attendance of the Commission and general manager. Motion was unanimously carried. Hutchinson Utilities Commission by -laws were discussed. Counsel Peterson requested if he could review the by -laws and report back to the Commission at next month's meeting. Dave Schmidt of Associated Consultants and "Butch" Wentworth were welcomed to the meeting. The distribution study was discussed. After discussion, a motion was made by Commissioner Lyke, seconded by Commissioner Beatty to authorize implementation of phase 1 (install two 13.8 KV feeders from Plant #1 to loopline near bridge on west side of town). Motion was unanimously carried. Old Business: None New Business: Job description for administrative director will be presented at a future meeting. The following are August payables: � I f ' August Payables - Electric Roger Koren Kim Harmsen Steve Kordahl Marvin Holmquist Petty Cash Elden Swanson Beverly J. Thompson Martin Lawler Deborah Duens Timothy Fish Julie Rick Jody Elam Brent Reiner Duane Zielske Petty Cash First National Bank Citizens Bank & Trust Co. Firstate Federal Savings PERA Citizens Bank & Trust Co. Woodmen Accident & Life Continental Assurance Co. Putnam Fund Dist., Inc. ICMA Retirement Corp. American Family Life Citizens Bank & Trust Co. Citizens Bank & Trust Co. Colonial Life & Accident Hutch Utilities IBM Corp. Natural Gas Division Richard Peterson PERA U.S. Postal Service Barry Anderson ICMA Retirement Corp. Putnam Fund Dist. CNA MN Benefit Association Citizens Bank & Trust Co. Commissioner of Revenue PERA Citizens Bank & Trust Co. Firstate Federal Savings First National Bank AMEX Life Assurance Co. Brett Becker Mavis Boeke Dean Brehmer Sheila Doering Ref u,nd i - overpayment final bill Meter deposit t and interest Postage Payroll deposit plan Payroll deposit plan Payroll deposit plan PERA withheld & expense Federal tax, FICA withheld & exp Medical insurance Life insurance Employee deferred comp withheld Employee deferred comp withheld Employee insurance withheld Deposit to Contribution Account Deposit to Bond & Int. Pay't Acct Employee insurance withheld Employee utility bills withheld Maintenance service Due to Natural Gas Division Accounts Receivable Legal retainer Employee insurance withheld Stamps Morning Tribune Employee deferred comp withheld Employee deferred comp withheld Life insurance Employee insurance withheld Federal tax, FICA withheld & exp State tax withheld PERA withheld & expense Payroll deposit plan Payroll deposit plan Payroll deposit plan Employee insurance withheld Meter deposit & interest 91.57 14.30 2.80 148.33 2,223.52 26.54 95.72 97.52 65.87 49.62 106.16 85.31 67.53 102.14 864.56 679.55 7,687.64 4,519.41 4,465.97 10,195.83 5,293.49 47.60 25.00 1,692.00 128.40 25,000.00 13,788.06 156.10 495.00 315.50 279,535.53 400.00 18.00 110.00 25.60 1,692.00 25.00 220.22 10.00 8,752.48 4,687.15 3,996.44 6,790.50 4,060.05 712.78 98.08 106.00 21.20 21.30 42.60 Y L/ AUGUST - ELECTRIC (cont) Douglas Forster Marlene M. Hanson Gail Havelka Telecky George Hohwieler William Holtz Christian Hoversten Larry Jenneke Neal Ludewig Walter Macho Gail Peterson Mark Prashek Curtis Reiter Michael C. Richards Lee Van Kley Viking Signs of Hutchinson Corporate Benefit Systems Petty Cash Hutch Utilities UPS Hutch Telephone Co. Zee Medical Service Welders Supply Co. Lakes Gas Co. Junker Sanitation IBEW Local 949 Hutch Utilities Hutch Utilities Four Seasons Services Fabricare Cleaners Culligan Water Condition County Market Commissioner of Revenue Cash Wise American Linen Supply City of Hutchinson UPA Erickson Oil Co. Leef Bros., Inc. Medical Insurance Schmeling Oil Company Apollo Piping Supply, Inc. Hillyard Floor Care Supply MN Electric Supply Co. Redman Travel Associated Consultants McLeod County Recorder Petersen - Wisdorf Meter t & interest Employee insurance withheld Meter deposit & int, office meeting expense Due to Natural Gas Division August labor Freight Telephone Supplies Supplies Gas Refuse service Union dues withheld Engines 3,110.54 Usage plant & UC 986.59 URD expense 332.82 Employee fund withheld Cup inserts Laundry Plant supplies Coffee, cookies Sales tax Rolls Laundry Water bill Purchased power Gas, plant supplies Laundry Expense Gasoline inv. Shop supplies Supplies Dist. inv., supplies School expense - Smutka Engineering fees Easement Dist. inv. 21.30 106.50 12.95 21.30 188.41 21.30 159.00 159.75 159.75 106.00 159.00 42.60 106.50 42.40 127.20 26.00 supplies 127.92 1,140.55 45.97 1,406.63 170.35 17.40 172.01 84.40 492.28 4,429.95 96.00 47.80 115.50 12.60 243.29 25,598.86 53.82 68.82 253.72 470,709.31 77.96 112.42 1,934.73 7,204.52 321.66 148.20 208.60 208.00 5,000.00 10.00 564.20 n LJ f AUGUST - ELECTRIC (cont) Case Power Equipment Power operated equipment maint. 237.00 Crime Resistance Unit Supplies 15.00 MN Electric Supply Mdse., supplies 52.18 United Electric Co. Engine maint. #8 47.82 Apollo Piping Supply Bldg. maint., shop supplies 33.78 UPA ITA Agreement 8,962.07 MN Electric Supply Dist. inv. 262.64 Graybar Electric Co. Dist. inv. 541.14 Electronic Center Dispatch expense 13.64 City of Hutchinson Water bill - Harry Schwartz credit 22.50 Woodward Governor Co. Engine maint. #9 5,431.65 City of Hutchinson Insurance premium 56,420.00 Nathan Smutka School expense 498.98 Olsen Chain & Cable Tools 379.91 MN Electric Supply Box inv., mdse., plant supplies, 363.81 bldg. maint. H & C Electric Supply Line maint., mdse. 768.85 Electronic Center Dispatch equipment maint. 256.76 United Building Centers Bldg. maint. 9.40 General Trading Co. Plant supplies, mdse. 303.32 Schmeling Oil Co. Lube oil inv. 12,496.00 Christensen Repair Shop supplies 5.00 Riverside Manufacturing Uniforms, mdse. 540.63 Great Plains Supply Maint. sub - station 131.94 Carquest Auto Parts Truck maint. 66.88 Rockite Silo Bldg. maint., transformer expense 141.08 Allen Office Products Office supplies 144.67 American Business Forms Office supplies 487.98 American Public Power Asso Power Manager software 2,250.00 American Welding Supplies Plant supplies, welding supplies 75.35 Anderson Chemical Co. Chemical inv. 3,381.15 Arts -Way Mfg. Co. Equipment maint. 27.14 Barco Bearing Co. Mdse. 13.77 Border States Electric URD expense, supplies 244.82 Brandon Tire Truck maint. 15.13 Case Power & Equipment Supplies 2.90 Central Eyewear Dist. Safety glasses 34.00 Coast to Coast Plant supplies, tools, grounds maint. 47.33 Crow River Glass Plant supplies 6.00 Curtis 1000, Inc. Office supplies 272.31 Ditch Witch of MN Power operated equipment maint. 49.26 V.W. Eimicke Associates Office supplies 126.85 Ekstrom Industries Meter maint. 852.80 Exline, Inc. Engine inv. #3 33977.06 Family Rexall Drug Plant supplies 8.67 Faribo Mfg. Co. Dist. inv. 99.58 Farm & Home Dist. Supplies, power operated equip maint 68.23 Forbes Auto & Service Plant supplies, power operated equip 19.98 maint Graybar Electric Co. Mdse., dist. inv. 11,242.93 Hay Management Consultants Consulting fees 2,049.90 AUGUST - ELECTRIC (cont) Hillyard Floor Care Supply Hutch Cold Storage Hutch Wholesale Supply Ink Spots, Inc. Insurance Planners Juul Contracting Co. Joan Limvere McLeod Cty Sntry Landfill Marco Business Products MN Electric Supply Co. National Electric, Inc. Northern States Supply Petersen- Wisdorf, Inc. Plaza Hardware & Gifts Plowman's, Inc. Quade Electric Raymark Office Products UPA Rutz Plumbing & Heating Schmeling Oil Co. Share Corp. Simonson Lumber The Standard Register Co. Stark Electronics Supply Woodward Governor Co. Rickert Excavating MMUA Plant supplies, bldg. maint. Pallets - lubricants handling Truck, power operated equip. maint tools, supplies Office supplies Insurance URD expense Consulting fees Dumping charges Office supplies Plant supplies, dist. inv. Transformer maint. Supplies, mdse. Dist inv, plant supplies, URD maint. Bldg. maint. Truck maint. URD expense Office supplies Station equipment maint. Fuel oil system maint. Gas Truck expense Plant supplies, bldg. maint. Office supplies Meter maint. Engine maint. #9 Grounds maint. Workshop - Butch AUGUST PAYABLES - GAS Continental Assurance Co. American Family Life ICMA Retirement Corp. Putnam Fund Dist., Inc. PERA Citizens Bank & Trust Co. Hutch Utilities Colonial Life & Accident Firstate Federal Savings Hutch Utilities PERA Putnam Fund Dist., Inc. ICMA Retirement Corp. Hutch Utilities PERA Commissioner of Revenue Citizens Bank & Trust Co. CNA Life insurance Employee insurance withheld Employee deferred comp withheld Employee deferred comp withheld PERA withheld & expense Federal tax, FICA withheld & exp. Payroll deposit plan Employee insurance withheld Deposit to C/D Account Employee utility bills withheld Employee insurance withheld Employee deferred comp withheld Employee deferred comp withheld Payroll deposit plan PERA withheld & expense State tax withheld Federal tax, FICA withheld & exp Life insurance 288.14 125.00 169.24 239.80 250.00 337.50 1,446.90 22.40 31.95 416.03 60.00 107.70 3,531.33 11.67 89.20 48.93 80.56 797.50 11.10 48.65 49.80 58.07 1,014.59 250.59 276.38 175.00 190.23 14.00 22.10 100.00 250.00 793.71 1,733.15 3,037.67 36.50 500.00 340.00 9.00 250.00 100.00 3,132.27 794.84 893.38 1,737.06 64.78 1 1 AUGUST - GAS (cont) First National Bank Petty Cash Hutch Utilities Hutchinson Co -op Hutch Utilities Hutch Utilities IBEW Local 949 Lakes Gas Co. Hutch Utilities Circle Hutch Utility Board Medical Insurance Battelle Columbus Lab. Petty Cash TraveLodge Fisher Controls, Inc. Palm Sales Apollo Piping Supply Consolidated Freightways Motor Vehicle Dept. M.V. Markin & Co. Val -Tex Valves, Inc. Wigen Chevrolet Co. J.W. Hanson Construction Fisher Controls Energy Economics, Inc. Dresser Measurement Div. American Meter Co. Insurance Planners Deposit to savings - inte Supplies Due to Municipal Electric August labor Truck expense Employee fund withheld Usage peak shaving plant Union dues Gas Due to Municipal Electric August expense Purchased gas Expense Reference catalog School expense - Riedel, School expense - Riedel, Regulator inv. Trailer Fittings inv. Freight charges Excise tax on trailer Mains & services expense Truck expense Truck maint. Maint. of mains Regulator inv. Fittings inv., meter exp Meter inv. Meter expense Insurance rest 527.50 11.18 Plant 3,037.05 12.50 15.00 62.53 128.00 61.12 Plant 17,900.37 Clyne Clyne ense 130,566.52 201.32 60.00 144.48 113.40 887.21 4,900.00 1,190.15 75.00 294.00 29.23 32.89 10.40 265.50 1,064.16 3,265.30 1,140.00 54.15 1,300.00 There being no further business, the meeting adjourned at 3:45 p.m. ATTEST E. Daggett, Prc Wident i f � ` Thomas B. Lyke, Secretaiy