07-29-1996 HUCMyq
Regular Meeting
July 29, 1996
Commissioners Cornell, Ward, Carls and Ackland were present; Commissioner
Gilmer was absent; also present were Mgr. Kadrmas and Counsel Prochnow.
President Cornell called the meeting to order at 3:00 p.m.
The minutes of June 24, 1996 regular meeting were reviewed. A motion was made
by Commissioner Carls, seconded by Commissioner Ward to approve the minutes
as written. Motion was unanimously carried.
The June payables were discussed. A motion was made by Commissioner Ackland,
seconded by Commissioner Carls to accept the June payables in the amount of
$1,361,662.69 (detailed listing in payables book). Motion was unanimously carried.
The 1996 year -to -date (thru June) financial and budget reports were reviewed. A
motion was made by Commissioner Carls, seconded by Commissioner Ackland to
accept the financial and budget reports. Motion was unanimously carried.
Discussed reroofing power plant #1. After discussion, a motion was made by
Commissioner Ward, seconded by Commissioner Ackland to advertise for bids for
reroofing power plant #1. Motion was unanimously carried.
Mgr. Kadrmas presented quotes for 1000 KVA 3 phase transformer (quotation
analysis attached). After discussion, a motion was made by Commissioner Ackland,
seconded by Commissioner Ward to award the quote for 1000 KVA transformer to
RESCO - Pauwels in the amount of $11,944. Motion was unanimously carried.
Received correspondence from Indian Oil Company regarding Hutchinson Utilities'
election not to participate in the drilling of Norton Brothers #2 -13 well (letter
attached). After discussion, a motion was made by Commissioner Ward, seconded
by Commissioner Carls to select option 1 - farmout all right, title and interest to
Indian Oil Company, retaining an overriding royalty interest equal to the difference
between 25% and existing royalty burdens of record with said interest being
proportionately reduced to Farmor's interest. Motion was unanimously carried.
Manager's Report:
1. Unit #1 is down - problems with water injection valve. Unit can be run if we
need to.
2. Unit #8 is down.
qy
3. In accordance with federal regulations, Hutchinson Utilities is required to notify all
its natural gas customers of certain recommendations regarding maintaining
underground natural gas piping downstream of the gas meter. Notice was published
twice in the Hutchinson Leader; notices will be included with customers utilities
statements mailed in August; notices will be sent to all landlords and will be given
to all new customers.
Old Business: None
New Business:
Discussed newspaper article regarding natural gas service for homeowners who
do not live in Hutchinson city limits.
There being no further business, a motion was made by Commissioner Carls, seconded
by Commissioner Ackland to adjourn the meeting at 4:30 p.m. Motion was unanimously
carried.
ATTEST:. PC -
G. P. Cornell, President
&6A PAI A
Dou as Ward, Vice President
ADVERTISEMENT FOR BIDS
FOR
REROOFING
POWER PLANT #1
HUTCHINSON UTILITIES COMMISSION
HUTCHINSON, MINNESOTA
Notice is hereby given that the Hutchinson Utilities Commission of the City of Hutchinson,
Minnesota, hereinafter referred to as the Owner, will receive sealed Bids at the Owner's
Utilities office, 225 Michigan Street in Hutchinson, Minnesota until 10:00 o'clock a.m. on
the 21st day of August, 1996, and will publicly open and read aloud such Bids on the
following improvements:
Approximately 6,500 SF roofing removal, reroofing, approximately 1,100 SF
metal wall replacement and associated work.
Proposals shall be properly endorsed and delivered in an envelope marked, "BIDS FOR
REROOFING POWER PLANT #1 FOR THE HUTCHINSON UTILITIES COMMISSION,
HUTCHINSON, MINNESOTA, PROJECT NO. 96170, 1996 " and shall be addressed to
the Owner at the address shown on the Proposal.
All proposals shall be submitted in triplicate on the Bidder's own letterhead in facsimile of
the Proposal Form enclosed in the Specifications, or by utilizing the Proposal Form
enclosed with the Specifications by typing the official name of the Bidder at the top of the
form.
Each Proposal shall be accompanied by a bid bond, cashier's check, or a certified check
made payable to the Owner in the amount of five percent (5 %) of the Bid, as a guarantee
that the Bidder will enter into the proposed Contract and provide a performance bond and
maintenance bond after their Bid shall have been accepted.
No Bidder may withdraw their Bid or Proposal for a period of thirty (30) days after date of
opening of Bids.
At the aforementioned time and place, or at such later time and place as the Owner then
may fix, the Owner will act upon Proposals received and with its sole discretion may award
Contract(s) for the furnishing of said equipment.
Specifications and Plans are available at the Office of the Owner's Engineering Firm:
Associated Consultants Engineers, Inc, 3131 Fernbrook Lane, Minneapolis, Minnesota
55447 -5323. Telephone number: 612- 559 -5511. The Owner reserves the right to reject
any and all bids.
By P&-J ,Z� �_ecv,
Paul Ackland, Commissioner
Date % -30-96
ATTESTED
By
Sue Winter, Assistant Recording Secretary
Date '/- 30 9 6
EJ
1
J
QUOTES FOR
1000 KVA TRANSFORMER
FOR IMPRESSIONS, INC.
1. RESCO - Pauwels $11,944.00
2420 20th Ave S
Moorhead MN 56560
2. Petersen- Wisdorf Inc $12,080.00
12100 12th Ave S
Burnsville MN 55337
3. Burmeister Electric Co $12,365.00
3776 W Broadway
Minneapolis MN 55422
4. WESCO $12,254.00
1299 Abell St
St Paul MN 55117
5. Border States Electric Supply $10,920.00
2100 Niagara LN
Plymouth MN 55447
6. RESCO - Cooper $10,930.00
2420 20th Ave S
Moorhead MN 56560
It is our recommendation that we award the quote to RESCO - Pauwels, in the amount
of $11,944.00.
1
L
LOSSES +
QUOTED LOSSES IN WATTS
CALCULATED
LOSSES
PURCHASED
QUOTED
L
Rp
MUM
i
XNjgNG
PRIG
RICE PUR
LIVERY
PETERSEN- WISDORF
1000
900
5831
$3,789.00
$10,437.49
$26,306.49
$12,080.00
10 WKS
BURMEISTER
1000
1139
5562
$4,795.19
$9,955.98
$27,116.17
$12,365.00
18 WKS
WESCO
1000
1133
5640
$4,769.93
$10,095.60
$27,119.53
$12,254.00
12 WKS
BORDER STATES
1000
1327
6308
$5,586.67
$11,291.32
$27,797.99
$10,920.00
12 WKS
RESCO COOPER
1000
1327
6308
$5,586.67
$11,291.32
$27,807.99
$10,930.00
14 WKS
$0.00
$0.00
$0.00
1
L
1
f�
• � li
Indian Oil Company
July 22, 1996
Hutchinson Utilities
225 Michigan Street
Hutchinson MN 55350
ATTENTION: Mr. Jerry Cornell
RE: Norton Brothers #2 -13 Well
Section 13- T21N -R21 W
Woodward County, Oklahoma
Sonat II
Dear Mr. Cornell,
SENT VIA AIRBORNE
Pursuant to Hutchinson's election not to participate in the drilling of the referenced well, please be
advised that you will have one (1) of the following options for Hutchinson's interest per the Sonat
II Operating Agreement dated January 16, 1992:
1. Farmout all right, title and interest in and to the spacing unit to Indian Oil
Company, retaining unto itself an overriding royalty equal to the difference
between 25% and existing royalty burdens of record with said interest being
proportionately reduced to Farmor's interest.
2. Accepting a bonus consideration of $2,920.00 ($50.00 per net mineral acres)
for an assignment of all of Hutchinson's right and interest in and to the
spacing unit to Indian Oil Company.
As Indian plans to commence operations on the referenced well within the next three (3) or four (4)
days I would appreciate your election of one (1) of the above options within three (3) days of your
receipt. Please indicate your election in the space provided on Page Two and return one (1) executed
original within the specified time.
105 N. HUDSON, SUITE 925 OKLAHOMA CITY, OK 73102 405/235 -9966
HUTCHINSON UTILITIES
Norton Brothers #2 -13 Well
Page Two
Should you have any questions, please do not hesitate to contact the undersigned.
Very truly yours,
INDIAN OIL COMP NY
L�
David L. Woo ow, Jr.
DLW:rk
We elect to farmout all right, title and interest to Indian Oil Company,, retaining an
overriding royalty interest equal to the difference between 25% and existing royalty burdens
of record with said interest being proportionately reduced to Farmor's interest.
We accept a bonus consideration of $2,920.00 for an assignment of all rights and interest in
and to the spacing unit to Indian Oil Company.
HUTCHINSON UTILITIES
TITLE: �..
DATE:
F ILAND\NORT2 -13. W ELVMCHIN.LTR