08-29-1988 HUCM.53
Regular Meeting
August 29, 1988
All Commissioners were present; also present were Mgr. Hakel
and Counsel Peterson.
President Daggett called the meeting to order at 1:00 p.m.
The minutes of July 25, 1988 regular meeting and August 10,
1988 special meeting were reviewed. A motion was made by
Commissioner Beatty, seconded by Commissioner Richards to
accept the minutes as written. Motion was unanimously carried.
The July payables for both entities were discussed. A motion
was made by Commissioner Beatty, seconded by Commissioner Lyke
to accept the payables as presented. Motion was unanimously
carried.
"Butch" Wentworth was welcomed to the meeting. He presented
street light specifications. After discussion, a motion was
made by Commissioner Beatty, seconded by Commissioner Richards
to accept the specifications, to advertise for bids on
September 1, 1988 and September 8, 1988, to open bids on
September 21, 1988 and to award the bid on September 26, 1988.
Motion was unanimously carried.
Jay Beytein, representing the Chamber of Commerce, was welcomed
to the meeting. Permanent lighting receptacles in Library Square
were discussed. The maximum cost for the lighting receptacles
would be $2,500. Being Hutchinson Utilities is a public utility,
it cannot appropriate money for material and labor for non - utility
projects. After discussion, it was decided the Chamber of Commerce
should approach the City Council with the project.
President Daggett and Commissioner Lyke updated the Commission on
meetings held with Mayor Ackland and Marlin Torgerson regarding
the 1989 contribution to the General Fund of the City of Hutchinson.
After discussion, a motion was made by Commissioner Beatty,
seconded by Commissioner Cornell to increase the contribution to
the City of Hutchinson by $150,000 for 1989 (total contribution
for 1989 would be $450,000) and an additional increase of $100,000
for 1990 (total contribution for 1990 would be $550,000). Motion
was unanimously carried.
A list of uncollectible accounts was discussed. A motion was
made by Commissioner Beatty, seconded by Commissioner Cornell
authorizing management to charge -off electric in the amount
of $503.22 and gas in the amount of $389.69, totaling $892.91,
detailed listing on pages 1419E and 651G of the August general
journal. Motion was unanimously carried.
IFT 5y
Ivan Larson was welcomed to the meeting. He reviewed power
adjustment (electric) and fuel adjustment (gas). (copies
attached) It was suggested to add to fuel adjustment - Option
to negotiate with large industrial firm and interruptible users.
A motion was made by Commissioner Beatty, seconded by Commissioner
Lyke to approve the power adjustment and fuel adjustment. Motion
was unanimously carried. Commissioner Daggett and Ivan Larson
were authorized to present power adjustment and fuel adjustment
to the City Council for approval.
In regard to Dakota Rail, Counsel Peterson and Ivan Larson
reviewed all Utility crossings and legal descriptions will be
prepared. He will give the information to Dakota Rail.
Nominations were requested for general manager. Commissioner
Beatty nominated Clarence Kadrmes. Commissioner Richards nominated
Ivan Larson. There being no further nominations, a motion was
made by Commissioner Beatty, seconded by Commissioner Cornell to
close nominations. Motion was unanimously carried.
After considerable discussion, a vote was taken:
For Clarence Kadrmes - Commissioner Beatty (aye)
Commissioner Cornell (aye)
Commissioner Lyke (aye)
A motion was made by Commissioner Lyke, seconded by Commissioner
Richards to have Commissioner Beatty and Commissioner Cornell
enter negotiations with Clarence Kadrmes. Motion was unanimously
carried.
Mgr. Hakel presented the July financial statements. A motion was
made by Commissioner Beatty, seconded by Commissioner Cornell
to accept the financial statements as presented. Motion was
unanimously carried.
Manager's Report:
1. A couple from Oslo, Norway, toured our facilities.
2. Employee handbook is ready to be printed and distributed.
3. On September 13, 1988 the gas distribution system and internal
records will be inspected by state inspectors. Hutchinson is
the first city in Minnesota to be inspected under the new
pipeline safety regulations.
1
�1
J
Fuel Cost Adjustment
(Gas)
Fuel Cost Adjustment is based on the combined costs of payroll
adjustment and the fuel delivered to utilities border station.
Adjustment cost shall be based on the volumes purchased for
the classifications. If propane is injected, 14.75 gallons
of propane equals 1 MCF of gas when injected at an average of
1,350 BTU's per cubic foot. Fuel cost shall include item
#151 and #152 of the Federal Energy Regulatory Commission's
Uniform System of Accounts. Costs will be added together and
divided by the amount of gas purchased by the system.
Fuel Adjustment will increase or decrease by one (1¢) per MCF
sold by each whole cent (1¢) above or below three dollars and
eighty -five cents ($3.85) per 1000 cubic feet total fuel
cost.
Computations of fuel adjustment shall be made monthly. The
resultant adjustment, if any, shall be applicable for the
month.
L�
POWER COST ADJUSTMENT
(Electric)
Power Cost Adjustment is based on the
combined costs of fuel, lubricants, payroll
adjustment, transmission maintenance,*
purchased power from outside suppliers and
maintenance of generating units ** used in
the Hutchinson electrical generating sta-
tions.
If the above combined costs have increased
or decreased, each monthly electrical bill
shall be increased or decreased from the
base of $.0345 per KWH by $.00011 per KWH
for each $.00010 per KWH.
Computations of power adjustment shall be
made monthly. The resultant adjustment, if
any, shall be applicable for the month.
*Maintenance is defined as the average
monthly cost for the previous six months.
* *Maintenance is defined as the average
monthly cost for the previous half year
that exceeds $14,000 per month.
lJ
Old Business:
Commissioner Cornell inquired about replacing the drive thru sign
by the Utility Center. Mgr. Hakel will get prices.
New Business:
Minnesota Municipal Utilities Association's 1988 annual fall meeting
will be held in Minneapolis, MN on October 19 -21, 1988. A motion
was made by Commissioner Beatty, seconded by Commissioner Lyke to
authorize the attendance of the Commissioners and general manager.
Motion was unanimously carried.
The following are July payables:
F,
1
ss
ACCO
CHECK NO DATE PAID
---~- -- ---- ----
13258 7/12/88
13261 7/12/88
13270 7/12/08
13271 7/12/88
13274 7/12/88
13287 7/12/88
13289 7/'12/88
13291 7/12/88
13296 7/12/88
13298 7/12/88
13381 7/12/88
13304 7/12/88
13305 7/12/88
13387 7/12/88
133i1 7/12/88
13312 7/12y88
13316 7,/12/88
13318 7/12/88
13322 7/12/88
13324 7y12,/88
13329 8/11/88
13331 8/ii/88
13332 8/ii/G8
13333 8/ii/88
i3334 8/ii/@8
13335 8/ii/88
JNTS PAYABLE - ELECTRIC 7/31/88 PAGE i
PAYEE AMOUNT
----- ~-----
AMERICAN FAMILY LIFE ASSQWANC 106.30
BARRY L ANDERSON 30.40
CITIZENS BANK & TRUST CO. 582 25,000.00
CITIZENS BANK & TRUST CO. 486 50'559.38
COLONIAL LIFE & ACCIDENT INS. 239.10
FLEXIBLE BENEFIT ADM INC 235.00
JOHN HENRY FOSTER COMPANY 84.00
QRAYBAR ELECTRIC COMPANY INC. 219.22
HUTCNINSON UTIL. - U. B. 330.00
HYDRA-POWR, INC. 40.02
INSTRUMENTATION SERVICES INC. 85.00
KATO TOOL & EQUIPMENT CO. 66.43
THE KIPLINGER WASH. EDITORS 58.00
LINCOLN NATIONAL CORP 26.00
MIKE'S MOBIL BAIT & TACKLE 60.78
NATURAL GAS DIVISION 178,331.96
RICHARD A. PETERSON 400.00
PUBLIC EMPL RETIREMENT ASSN 18.00
RIVERSIDE MANUFACTURING CO 280.50
SQUARE D COMPANY 9,450.00
AG SYSTEMS INC. 17.60
AMERICAN LINEN SUPPLY CO~ 88.01
AMERICAN WELDING SUPPLIES INC 225.30
AMOCO OIL COMPANY 13.48
ANDERSON CHEMICAL COMPANY iM3.33
ASSOCIATED CONSULTANTS, INC. 2,885.0{)
ACCQ
CHECK NO DATE PAID
----- -- ---- ----
13336 8/11/88
13337 8/11/88
13338 8/1t/s0
13339 8/1i/G8
13340 8/11/88
13341 8/11/88
13342 8/11/88
13343 8/ii/s8
13346 8/i1/88
13349 8/ii/88
13350 8/11/88
13351 8/ii/88
13352 8/ti/88
13353 8/11/08
13355 8/11/88
13356 8/1i/88
13357 8/11/88
13358 8/ti/88
13359 8/11/88
13360 8/11/88
13361 8/i1/88
13362 8^^i1/88
13363 8/ii/88
13365 8/1i/e[J
13366 8/1i//88
13367 8/11/88
.JNTS PAYABLE - ELECTRIC 7/31/80 PAGE 2
PAYEE AMOUNT
ARTSIGN MATERIALS CO. 31.57
BARCO MUNICIPAL PRODUCTS INC. 70°05
BIG BEAR' INC, 11.99
BORDER STATES ELECT SUPPLY CO 31399.83
BRANDON TIRE 208.63
BURMEISTER ELECTRIC CO. 3'775.78
CARR FLOWERS 24.60
CASH WISE 51.84
COMMISSIONER OF REVENUE 23,713.98
CONTINENTAL SAFETY EQUIP INC. 38.25
COUNTY MARKET 185^41
CRIME RESISTANCE UNIT 5.70
CULLIGAN WATER CONDITIONING 12.60
DON'S RED OWL FOODS 38^78
V. W. EIMICKE ASSOCIATES INC. 97.00
ELECTRONIC CENTER, INC. 1204
FABRICARE CLEANERS OF HUTCH 79.00
FAMILY REXALL DRUG 21.08
FARM & HOME DISTRIBUTING 78.85
FORBES' AUTO & SERVICE CNTR 34.91
JOHN HENRY FOSTER COMPANY 34.96
G.E. SUPPLY 244^28
GLOBAL COMPUTER SUPPLIES 96^07
HANSEN GRAVEL, INC 204.00
HILLYARD FLOOR CARE SUPPLY 678.10
HUTCHINSON FIRE & SAFETY 16.90
ACC0
CHECK NO DATE PAID
----- -- ---- ----
13368 8/ii/88
13369 8/11/88
13378 8/ii,/88
13371. 8/11/G8
13372 8/1.1/88
13374 8/ti/Q8
13375 8/it/8a
13377 8/11/88
13378 8/1i/88
13379 8/1i/88
13380 8/ii/88
13381 a/ 11/1.319
13383 8/i1/88
13384 8/ii/88
13385 8/i1/88
13387 8/1i/SG
13388 8/11/88
13389 8/ii/88
13391. G/i1/88
13392 8/ii/88
13393 8/1i/88
13394 8/1i/8G
13395 8/11y88
13397 8yii,^88
13398 8^/ii/88
13399 8/11/88
]NTS PAYABLE - ELECTRIC 7/31/'88 PAGE 3
PAYEE AMOUNT
----- ------
THE HUTCHINSON LEADER 61.38
HUTCHINSON UTIL. EMPL. FUND 140.00
HUTCHINSON UTIL. - W. B. 11,890.05
HUTCHINSON WHOLESALE SUPPLIES 263.52
HYDRA -POWR, INC. 3i.i8
I B E W LOCAL 949 483.55
INK SPOTS, INC. 125^23
.JUNKER SANITATION SERVICE 84^40
KEM8NE PAPER COMPANY 30.00
LAKES GAS CO. 49.63
LEEF BROS.' INC. 22.97
JOAN LIMVEBE 800.85
NORTHERN STATES SUPPLY INC. 587.0*7
PETERSEN-WIGDORF, INC. 3,978.07
G.C.PETERS0N MACHINERY CO. 753.95
PLAZA HARDWARE & GIFTS 106.17
PLOWMAN'S INC. 383^13
POWER PROCESS EQUIPMENT, INC. 30.74
QUADE ELECTRIC 63.36
RAPIDFORHS, INC. 71.08
SERVICE TRADESMAN & REPAIR 483.00
SIMONSOM LUMBER 92.15
SORENSON FARM SUPPLY 18^75
T & R ELEC'7RIC SUPPLY CO. 1.,240.00
TRI-COUNTY WATER CONDITIONING 32.00
UNITED POWER ASSOCIATION 509,483^80
ACC 01
CHECK NO DATE PAID
----- -- ---- ----- 13400 8/1i/88
13401 8/11/88
13482 8/11/88
13403 8/11/88
18001 7/06/88
18008 7/06/88
i9o1i 7/06/88
18033 7/08/'88
W034 7/08/88
18037 7/08/88
WOW WO8/88
18039 7/88/80
18040 7/08/88
^
i804i 7/08/88
18042 7/06/88
18043 7/06/88
18047 7/07/'88
18048 7/07/88
18049 7/07/88
18850 7/07/88
18o5i 7/07/88
18052 7/08/88
18053 7/08/88
18054 7/08/88
11155 7/18/88
18056 7/08/88
JNTS PAYABLE - ELECTRIC 7/31/88 PAGE 4
PAYEE AMOUNT
----- ------
WELDERS SUPPLY COMPANY 32.61.
WESCO 69.23
ZEP MANUFACTURING CO. 363.00
ZINS MACHINING 34.00
AMERICAN PAYMENT CENTERS INC. 68.60
CONTINENTAL ASSURANCE CO. 42.42
WOODMEN ACCIDENT & LIFE CO. 5,893.92
ICMA RETIREMENT CORP. 756.00
PUTNAM FUND DIGT INC. 25^00
FIRST STATE FEDERAL SAVINGS e,994.75
CITIZENS BANK & TRUST CO. 6,034.52
FIRST NATL BANK OF HQTCHINSQN 716~77
CITIZENS BANK & TRUST CO. 8'843.22
PUBLIC EMPL RETIREMENT ASSN 3,653.70
U. S. POSTAL SERVICE 400.20
U. S. POSTAL SERVICE 125.00
KELLY DALE 24.63
HUTCH%NSON PLUMBING & HEATING 95.22
BECKY JO STENMARN 1.46
CHRIS PALVERE W.27
PATRICK HALLAHAN 1.05
PETTY CASH 735.28
TAMMY GLIDDEN 14O.W
TOM DICKSON i6s.80
KATHY CARRIGAM 51.35
MICHAEL J. OLSON 95.55
ACCOl
CHECK NO DATE PAID
18058 7/09/88
1@059 7/08/89
18060 7/08/88
18061 7/08/88
18062 7/08/88
18063 7/08/88
18064 7/08/88
18065 7/08/88
19068 7/11/88
18070 7/13/88
18079 7/14/88
18083 7/15/88
18084 7/1o/88
18085 7/20/88
18086 7/20/88
18087 7/20/80
isoss 7/22/88
18089 7/22/88
18o90 7/22/88
103091 7/22/88
18092 7/22/88
18093 7/22/80
18094 7/22/88
18095 7/22/88
18096 7/21/88
.JNTS PAYABLE - ELECTRIC 7/31/ee PAGE 5
PAYEE AMOUNT
SCOTT KAUFENBERG 47.40
MIKE KOEHLER 137.30
WAYNE SCHLICHT 139.01
CHARLES C. HUNT 78.99
JEFF BUTE 162.53
MILDRED STACHOWIAK 97.e1
JEFFREY SCHMIT 51.94
TORY TISH 79.28
RON SKELTON 64.e8
PETTY CASH 1, 013.87
MARCO BUSINESS PRODUCTS INC 31.95
SEARS, ROEBUCK AND CO. 65.57
CITY OF HUTCHINSON e4.e9
I. D. M. 315.50
DAVID LAMECKER 72.00
LINDA SQUIER 5.3e
EUGENE WIEDENROTH 30.60
ICMA RETIREMENT CORP. 756.00
PUTNAM FUND DIST INC. •5.00
CITIZENS BANK & TRUST CO. 9,218.13
COMMISSIONER OF REVENUE 3,562.08
PUBLIC EMPL RETIREMENT ASSN 3,695.54
FIRST STATE FEDERAL SAVINGS 8,927.63
CITIZENS BANK & TRUST CO. 5,859.56
FIRST NATL BANK OF HUTCHINSON 674,12
JEROME EBERT 24.21
AC COI
CHECK NO DATE PAID
18097 7/21./88
18098 7/21/88
19099 7/25/88
i8io0 7/25/86
18102 7/25/88
18103 7/•6/88
18104 8/02/88
isi% 8/02/803
18107 8/02/88
ioi% 8/02/88
18110 8/02/88
isiii 8/02/88
18112 8/02/80
18113 8/02/08
18114 8/02/88
181= 8/02/88
18119 8/03/88
18120 8/03/88
18121 8/03/88
18123 8/03/88
18124 0/03/88
18125 8/02/88
18131 8/03/86
18132 8/04/88
18133 8/04/88
18134 8/04/80
INTS PAYABLE - ELECTRIC 7/31/88 PAGE 6
PAYEE AMOUNT
KERRY KRUEGER 3.90
MELVIN WENTWORTH 21.33
MINNESOTA BENEFIT ASSOCIATION 10.00
CONTINENTAL ASSURANCE CO. 173.86
THOMAS B. LYKE 1,354.40
EMMET MCCORMICK 500.00
PETTY CASH 1090.86
MN ENVIRONMENTAL QUALITY BRD 567.12
AMEX LIFE ASSURANCE CO 72.08
MN ELECTRIC SUPPLY CO. 63.16
HARRIET BURICH 194.40
DAVID LAMECKER 19.80
DAN NELSON 31.95
EUGENE WIEDENROTH 39.60
H & C ELECTRIC SUPPLY 292.79
ERICKSON'S FOODS & VALU DRUG 69.60
HUTCHINSON TELEPHONE COMPANY 1,425.26
UNITED PARCEL SERVICE 57.11
CITY OF HUTCHINSON 6,495.00
WESLEY'S PHARMACY 158.34
FAMILY REXALL DRUG 200.79
HUTCHINSON DRUG INC 138.33
LAKE AREA UTILITY CONTRACTING 45,775.13
GRAYBAR ELECTRIC COMPANY INC. 667.78
UNITED POWER ASSOCIATION b=5.8i
VERMEER SALES & SERVICES 133.04
ACCO
CHECK NO DATE PAID
M35- -8/04/88-
18136 8/04/86
181% 8/04/88
18139 0/04/88
18140 8/05/88
18141 8/05/88
18142 8/05/88
M43 8/05/88
M44 8/05/88
18145 7/31/88
M46 8/05/88
18162 8/05/88
18163 8/08/88
18164 8/09/88
l6165 8/09/88
18166 8/09/88
18167 8/09/88
M68 8/09/88
18169 8/09/88
18170 8/09/88
18172 8/ii/ss
M73 6/i i/#38
18174 8/it/88
isi75 8/1 i./803
18176 8/it/88
M77 8/it/88
UNTS PAYABLE - ELECTRIC 7/31/88 PAGE 7
PAYEE AMOUNT
GENERAL TRADING COMPANY 1.96
H & C ELECTRIC SUPPLY 631.90
HUTCHINSON UTILITIES 854.22
BREMIX CONCRETE CO MO.%
NORMAN BOHN 61.82
HARRIET BURICII 10.08
LEE HENNESSEY 2.10
GARNETTE MARVAN 8.80
NATHAN SMUTKA 6.75
DALE STURGES 189.00
MELVIN WENTWORTH 5.96
MN ELECTRIC SUPPLY CO. 901.83
DONALD NELSON 35.00
ALEX GONZALEZ 100.00
SHELDON HARMS 159.25
JAMES KLEIN 100.00
RON LIND 100.00
WILLIAM MATTHEWS 20.00
BRIAN SCHOEBERL 150.75
DAVID SVOBODA 2000
NORMAN BOHN 104.86
EDWIN DOLE ZAL 19.80
JEROME EBERT 45.00
BRUCE KRUEGER 80.55
DAVID LAMECKER 251.56
DELMAR ORTLOFF 61.20
CHECK NO
---- --
18l?B
18179
19182
18187
i8i90
19191
ACCO
DATE PAID
---- ----
8/ii/88
8/ii/88
G/i5/88
8/i6/88
8/i6/8B
8/16/88
JNTS PAYABLE - ELECTRIC
PAYEE
-----
MELVIN WENTWORTH
EUGENE WIEDENROTH
ORVIS WAHL
COAST-TO-COAST
ED DAVIS BUSINESS MACHINES
MARTY`S ROOFING
7/3t/8B
PAGE B
AMOUNT
4.95
81.45
W3.90
57^G2
46.82
2,926.00
III
CHECK NO
3420
3422
3426
3428
3431
3438
3440
3441
3442
3443
3444
3445
3446
3447
3449
4693
4700
4701
4702
4703
4704
4706
4707
4710
47W
4714
ACCOUNTS PAYABLE - GAS
DATE PAID PAYEE
'711.2108
AMERICAN FAMILY LIFE ASSURANC
7/t2/88
COLONIAL LIFE & ACCIDENT INS.
7/12/88
FIRST STATE FEDERAL SAVINGS
7/12/88
HUTCHINSON UTIL. - U. B.
7/12/88
PUBLIC EM -'L.. RETIREMENT ASSN
8/11/88
GOPHER STATE ONE-CALL, INC.
8/11 /os
HUTCHINSON CO-OP
8/0/88
HUTCHINSON UTIL. EMPL. FUND
8/it/oa
HUTCHINSON UTIL. - U. B.
8/ii/8o
I B E W LOCAL 949
8/11/88
MINNESOTA LIMITED, INC.
B/it/88
NORTH STAR GAS PRODUCTS
8/11/88
PLEXCO-FAIRFILED
Wit/%
PROTECTION PRODUCTS COMPANY
8/11/88
SCHMELING OIL
7/06/88
CONTINENTAL ASSURANCE CO.
7/08/88
ICMA RETIREMENT CORP.
7/08/88
PUTNAM FUND DIST INC.
7/08/88
CITIZENS BANK & TRUST CO.
7/08/88
PUBLIC EMPL RETIREMENT ASSN
7/08/83
HUTCHINSON UTILITIES
7/14/88
J. C. PENNEY CO.
7/14/88
HARRIET BURICH
7/iB/so
HUTCHINSON UTILITIES
7/22/88
CITIZENS BANK & TRUST CO.
7/22/88
COMMISSIONER OF REVENUE
7/31/88 PAGE i
AMOUNT
22.10
36.50
500.00
325.00
9.00
25.00
12.00
24.00
64.57
131.50
800.00
470.60
9,161.00
538.85
54.78
12.48
125.00
250.00
i, 915.60
82 5.93
3,778.01
42.11
8.99
16,528.38
1,924.53
753.44
CHECK NO
---- --
471.5
406
4717
47%
4719
4720
4721
4722
4724
4730
4731
4732
4735
4738
4740
ACCOUNTS PAYABLE — GAS
DATE PAID PAYEE
---- ---- -----
7/22/88
PUBLIC EMPL RETIREMENT ASSN
7/22/88
HUTCHINSO# UTILITIES
7/22/08
ICMA RETIREMENT CORP.
7/22/88
PUTNAM FUND DIST INC.
7/21/88
INSURANCE PLANNERS
7/25/88
CONTINENTAL ASSURANCE C8^
8/02/60
HARRIET BURICH
8/02/88
APOLLO PIPING SUPPLY, INC.
8/02/88
PETTY CASH
8/04/88
HUTCHIHSON UTILITIES
8/05/88
HARRIET BURICH
8/05/88
DENNIS RIEDEL
8/15/88
ERICKS8N OIL PRODUCTS
8/i5/88
ENRON GAS MARKETING INC
8/16/88
CIRCLE—HUTCH UTILITY BOARD
M9/88
HUTCHINSON UTILITIES
There being no further business, the meeting was adjourned at 3:47 p.m.
ATTEST
Daggett, E. NASA—
PAGE 2
AMOUNT
823.3J.
3,916.73
125.00
250.00
2B'820.00
5i.1^4
129.60
6B.57
W.B3
1'064.i2
6^72
79.20
52.46
5,130.00
84,630.56
W7i9.71