01-29-2020 HUCCP
HUTCHINSON UTILITIES COMMISSION
AGENDA
REGULAR MEETING
January 29, 2020
3:00 p.m.
1. CONFLICT OF INTEREST
2. COMMISSION REORGANIZATION
a. President
b. Vice President
c. Appoint Secretary
d. Appoint Legal Council
e. Appoint Recording Secretary
f. Designate Depositories for Utility Funds
i. Citizens Bank & Trust
ii. Wells Fargo Bank
iii. Wells Fargo Advisors
iv. Home State Bank
v. Morgan Stanley
vi. Cetera Investment Services
3. APPROVE CONSENT AGENDA
a. Approve Minutes
b. Ratify Payment of Bills
4. APPROVE FINANCIAL STATEMENTS
5. OPEN FORUM
6. COMMUNICATION
a. City Administrator
b. Divisions
c. Human Resources
d. Legal
e. General Manager
7. POLICIES
a. Review Policies
i. Section 1 of Exempt Handbook
ii. Section 1 of Non-Exempt Handbook
b. Approve Changes
i. IT Policy
8. UNFINISHED BUSINESS
a. Follow up conversations on Possible City Charter Amendment to
change the eligibility requirements to serve as a Hutchinson Utilities
Commissioner
9. NEW BUSINESS
a. Approve Requisition #8255 WSB for 2020 Geohazard Program
b. Approve Requisition #8256 Energy Economics, Inc. for 2020 Sonic
Nozzle Prover
c. Approve Requisition #8263 Nelson Technologies, Inc
d. Approve Requisition #8267 2020 John Deere 310 SL Tractor
Backhoe
e. Approve Requisition # 8274 2020 Chevrolet 2500 HD 4.4 Work Truck
f. Approve Requisition #8278 2020 Chevrolet 1500 Crew Cab 4x4
Work Cab
g. Approve Requisition #8280 & #8281 Service Truck #574
h. Approve Requisition #8285 Two Atlas Copco GA26 Rotary Screw Air
Compressors
i. Approve Requisition #8286 2020 Chevrolet Silverado MD 4WD Crew
Cab and Chassis
j. Approve Selling Surplus Vehicles
k. Approve Reliability Compliance Services Agreement
l. Approve Brownton Electric Meter Reading Agreement
10. ADJOURN
MINUTES
Regular Meeting Hutchinson Utilities Commission
Wednesday, December 18, 2019
Call to order 3:00 p.m.
President Don Martinez called the meeting to order. Members present: President Don
Martinez; Vice President Matt Cheney; Secretary Robert Wendorff; Commissioner Monty
Morrow; Commissioner Anthony Hanson; GM Jeremy Carter; Marc Sebora
1. Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Cheney, second by Commissioner Morrow to approve the
Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
Mr. Martig presented the Financial Statements. Electric Division shows a net loss of
$20K, which was a $64K improvement over 2018.
GM Carter noted that HUC is organizationally on track. Electric Division is trending
lower with the seasonal weather, but overall is tracking fairly well. Fuel consumption
and load are down and transmission costs are running at 80% year to date. Natural
Gas Division operating expense is under budget and overall trending fairly well.
Motion by Commissioner Wendorff, second by Commissioner Hanson to approve
the financial statements. Motion carried unanimously.
4. Open Forum
5. Communication
a. City Administrator Matthew Jaunich
i. Middle of budgets
ii. Agreement for Civil Air Patrol.
iii. Performing Due diligence on Econo site
b. Divisions
i. Dan Lang, Engineering Services Manager
1. Bid spec for transformer at plant
ii. Dave Hunstad, Electric Transmission/Distribution Manager Nothing to
report
iii. Randy Blake, Production Manager
1. Working on 2020 Plan
2. Finishing up year end
iv. John Webster, Natural Gas Division Manager- Absent
v. Jared Martig, Financial Manager-
1. Working on property and liability
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2. Audit at the end of January
c. Legal Marc Sebora Nothing to report
d. Human Resources - Brenda Ewing Nothing to Report
e. General Manager Jeremy Carter
i. Finishing up year-end items
ii. Conversations are starting on legislative topics
iii. Sitting in on APPA & MMUA meetings and working groups on various
legislative topics. Will keep the Commissioners updated on topics.
6. Policies
a. Review Policies
i. None
No changes recommended at this time.
b. Approve Changes
7. Unfinished Business
8. New Business
a. Approve 2020 Budgets & CIP
GM Carter presented for approval the 2020 Budgets and CIP. At the November
27, 2019 Commission meeting a high-level overview of the 2020 budgets were
reviewed and major changes over 2019 were discussed in detail. Since that time,
minor additions were made on the expense side of the 2020 operating budgets to
reflect some additional costs for insurance ($9,532), and the new security system
with a network switch ($30,000) that was originally budgeted for in 2019 that did
not happen but will in 2020. On the CIP for 2020, an additional $1K was added to
the high-pressure filter cleaning machine budget in the production area to reflect
the final cost of the equipment. Everything else that was presented stayed the
same. GM Carter noted that the 5 -Year CIP changes from year to year and will
be reviewed and updated as needed moving into 2021.
After discussion, a motion by Commissioner Morrow, second by Commissioner
Cheney to Approve 2020 Budgets & CIP. Motion carried unanimously.
b. Approve Moving 2020 Pay Grid & New Pay Performance Guide
GM Carter presented the 2020 Non-Union Pay Grid & New Pay Performance
Guide. GM Carter recapped discussions that were held in previous months with
the Commission. Currently there are Staff employees outside the pay grid
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receiving a lump sum compensation. Different alternatives were reviewed to have
a transition plan moving forward. Based on feedback from the Board, a transition
plan was identified to move the non-union employees to a new Pay for
Performance Guide, eliminate the lump sum wage component of the current
compensation plan, and establish new performance grading criteria for which
non-union employees will be scored. The recommendation for this transition is to
first move the 2019 pay grid one-time 7% to bring all non-union employees back
on the pay grid, which will then eliminate the lump sum compensation component
moving forward. Next, use of the current performance rating criteria in Taleo for
year-end 2019 reviews and apply those review scores to the new performance
guide, which is attached. Third, in early 2020 HUC needs to develop the new
performance rating criteria to be applied to year-end 2020 reviews and apply
those review scores to the new performance guide, which is attached. Lastly, in
early 2021 HUC needs to do an external/consultant compensation assessment to
the market and make appropriate adjustments if needed. Comprehensive studies
need to be done more frequently than what have been done in the past.
Commissioners agreed that all questions and concerns have been addressed. It
was also noted that 2021 seems to be an appropriate time to do a comprehensive
study.
A motion by Commissioner Hanson, second by Commissioner Wendorff to
Approve Moving 2020 Pay Grid & New Pay Performance Guide. Motion carried
unanimously.
c. Consideration of Approval of Pay Equity Report
Ms. Ewing presented the consideration of approval of Pay Equity Report. Last
month it was reported that HUC is required to submit a pay equity report every
three years, and HUC will be reporting for 2019. Staff is happy to report that HUC
is in compliance with the state requirements. The attached report must be
approved by Hutchinson Utilities Commission and submitted to Minnesota
Management and Budget (MMB) Department. The underpayment ratio value of
217.39 included in Section II of the Compliance Report is above the minimum
ratio of 80 that is required to be in compliance. It is requested that the
Commission accept and approve the enclosed report before it can be sent to the
State by the end of January.
A motion by Commissioner Morrow second by Commissioner Cheney to Approve
Consideration of Approval of Pay Equity Report. Motion carried unanimously.
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d. Approve Supplemental Agreement to the Transmission Facilities Assignment
Agreement
GM Carter presented the approval of the Supplemental Agreement to
Transmission Facilities Assignment Agreement (Exhibit B-1). In October 2016,
HUC entered into a Transmission Facilities Assignment Agreement with Missouri
transmission facilities to MRES for the purpose of capturing revenue sharing
payments. Due to the future capacitor bank addition at the McLeod Substation, a
supplemental agreement (Exhibit B-1, attached) is necessary to define the new
transmission facilities, along with the roles and responsibilities of each party.
HUC assigns the right for MRES to work with MISO and GRE, essentially MRES
is the intermediary on behalf. Deadline to complete the agreement is early
March, with construction to follow shortly after. Costs are not eligible for HUC to
report on schedule O but any future expenses HUC incurs for maintenance and
improvements can receive revenue recapture.
Mr. Sebora noted this was summarized well. MISO looks at MRES as the
regulator. Transmission studies that happen in the region, MRES is the
transmission owner. Commissioner Morrow inquired if there was a specific term
tied to this. GM Carter informed the Commission that there is not.
A motion by Commissioner Hanson, second by Commissioner Cheney to
Approve Supplemental Agreement to the Transmission Facilities Assignment
Agreement. Motion carried unanimously.
e. Approve Requisition #8226 2020 Chevrolet Pickup
Mr. Lang presented approval of Requisition #8226 2020 Chevrolet Pickup. This
scheduled replacement was intended to have been done earlier in the year but
was delayed. HUC is looking to replace the 2012 Dodge Durango with a 2020
Chevrolet pickup. This is a 2019 item, but will be carried over to 2020.
A motion by Commissioner Hanson, second by Commissioner Wendorff to
Approve Requisition #8226 2020 Chevrolet Pickup. Motion carried
unanimously.
f. Discussion of possible City Charter Amendment to change the eligibility
requirements to serve as a Hutchinson Utilities Commissioner.
Mr. Sebora discussed the possible City Charter Amendment to change the
eligibility requirements to serve as a Hutchinson Utilities Commissioner. There
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have been times throughout the years, the Utilities Commission has struggled to
find qualified candidates to serve as a Utilities Commissioner. Since 2013, the
Utilities Commission has periodically discussed possibly changing the eligibility
requirements to serve as a Utilities Commissioner. Mr. Sebora noted the
requirements to serve as a Utilities Commissioner are set out in the Hutchinson
City Charter and
Charter Commission, it was discussed to possibly change the eligibility
requirements to be on the Utilities Commission. The Charter discussed making
business ownership in the City of Hutchinson an alternative requirement to be
eligible to serve on the Utilities Commission. The possible change would give the
Utilities Commission a larger pool of potential Utilities Commission candidates
from which to choose from, and if the person were a business owner located in
Hutchinson, the candidate would also be a customer of the Utility and therefore
have a vested interest in the success of the Utility. The Charter Commission
tabled the discussion until the next meeting in April 2020 to allow the Utilities
Commission to discuss this possible change and provide feedback concerning
this topic.
After much discussion, it was decided to add this item back on the January
agenda for further discussion and possible action on this topic.
g. Conduct the Performance Review of Hutchinson Utilities Commission General
Manager Pursuant to Minnesota Statute 13D.05 Subd. 3(a)
President Martinez introduced the agenda item, the General Manage
performance review. President Martinez advised GM Carter that he has the option
to have the performance review conducted as either an open session or a closed
session of the Utility Commission. GM Carter indicated his decision to have the
review as part of a closed session.
President Martinez entertained a motion to go into closed session to conduct the
twelve-month (annual) performance review as permitted under Minnesota Statute
13D.05, Subdivision 3(a). Motion by Commissioner Morrow, second by
Commissioner Wendorff to go into closed session to conduct the General
Commission then proceeded into a closed session at 3:58 p.m.
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Hutchinson Utilities Commission
Summary of Closed Meeting Proceedings
General Manager Performance Appraisal
Wednesday, December 18, 2019
On December 18, 2019, the Hutchinson Utilities Commission conducted a closed meeting for the
annual performance appraisal for General Manager, Jeremy Carter. Individuals present included
General Manager Jeremy Carter, Commission Members Don Martinez, Monty Morrow, Anthony
Hanson, Bob Wendorff, and Matt Cheney, City Attorney Marc Sebora, and City of Hutchinson
Human Resources Director Brenda Ewing. Mr. Carter exercised his right to close the proceedings
to the public as permitted under Minnesota Statute 13D.05, Subdivision 3(a).
Motion by Morrow, second by Wendorff to go into closed session to conduct the General
assed unanimously. The Commission then
proceeded into a closed session at 3:58 p.m.
required per the terms of the employment contract in place between the Hutchinson Utilities
Commission and General Manager Carter.
Organizational Management,
Fiscal/Business Management, Program Development, Relationship & Communication with the
Commission, Long-Range Planning, and Relationships with Public & Outside Organizations. The
consensus of the Commission
was found to be 4.10 on the rating scale of 0 5, and, per the Hutchinson Utilities Commission,
is outstanding on the ratings scale.
The employment contract between Hutchinson Utilities and Mr. Carter indicates that salary
increases for the General Manager are subject to the provisions of the Compensation Plan section
of the Hutchinson Utilities Commission Exempt Employee Handbook.
Motion by Cheney, second by Hanson to close the closed session. The motion passed
unanimously. The Commission proceeded into open session at 4:53 p.m.
ensation plan, an aggregate score of
4.1 correlates to a 5% increase. Motion by Hanson, second by Cheney to increase General
Motion to adjourn by Wendorff, second by Cheney. The motion carried unanimously, and the
meeting adjourned at 4:54 p.m.
__________________________
Robert Wendorff, Secretary
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ATTEST: _________________________
Don Martinez, President
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HUTCHINSON UTILITIES COMMISSION
COMBINED DIVISIONS
FINANCIAL REPORT FOR DECEMBER, 2019
December, 2019 MonthYear to Date 100% of Year Comp.
20192018Diff.% Chng20192018Diff.% Chng Full Yr Bud% of Bud
Combined Division
Customer Revenue$ 3,377,568$ 3,503,042 $ (125,474)(3.6%)$ 35,656,669 $ 36,572,180 $ (915,511)(2.5%)$ 36,285,01898.3%
Sales for Resale$ 205,299$ 185,537$ 19,76310.7%$ 2,773,852$ 3,071,099$ (297,247)(9.7%)$ 2,951,50094.0%
NU Transportation$ 83,137 $ 82,259$ 8781.1%$ 1,040,698$ 940,990$ 99,708 10.6%$ 885,452117.5%
Electric Division Transfer$ 54,982 $ 54,697$ 2850.5%$ 659,783$ 656,366$ 3,417 0.5%$ 659,783100.0%
Other Revenues$ 135,530$ 59,319$ 76,211128.5%$ 686,392$ 643,025$ 43,367 6.7%$ 490,208140.0%
Interest Income$ 167,062$ 158,509$ 8,5535.4%$ 640,717$ 477,546$ 163,17134.2%$ 283,456226.0%
TOTAL REVENUES$ 4,023,578$ 4,043,362 $ (19,785) (0.5%)$ 41,458,111 $ 42,361,206 $ (903,095)(2.1%)$ 41,555,41799.8%
Salaries & Benefits$ 652,927$ 510,083$ 142,84528.00%$ 6,154,470$ 5,839,232$ 315,2385.4%$ 6,676,68192.2%
Purchased Commodities$ 1,902,418$ 2,055,812 $ (153,394)(7.5%)$ 19,737,334 $ 20,717,620 $ (980,286)(4.7%)$ 19,155,179103.0%
Transmission$ 194,351$ 180,107$ 14,2447.9%$ 2,856,868$ 2,454,965$ 401,90316.4%$ 3,380,00084.5%
Generator Fuel/Chem.$ 40,778 $ 31,277$ 9,50130.4%$ 670,814$ 1,126,228$ (455,415)(40.4%)$ 1,139,85058.9%
Depreciation$ 327,083$ 222,151$ 104,93247.2%$ 3,925,000$ 3,804,484$ 120,5163.2%$ 3,925,000100.0%
Transfers (Elect./City)$ 188,434$ 158,986$ 29,44818.5%$ 2,261,207$ 1,907,835$ 353,37218.5%$ 2,261,207100.0%
Operating Expense$ 205,312$ 511,631$ (306,319)(59.9%)$ 2,400,175$ 2,303,845$ 96,329 4.2%$ 2,791,44386.0%
Debt Interest$ 89,542 $ 97,334$ (7,792)(8.0%)$ 1,160,215$ 1,231,469$ (71,254)(5.8%)$ 1,168,00799.3%
TOTAL EXPENSES$ 3,600,846$ 3,767,381 $ (166,534)(4.4%)$ 39,166,082 $ 39,385,678 $ (219,596)(0.6%)$ 40,497,36796.7%
NET PROFIT/(LOSS)$ 422,731$ 275,981$ 146,75053.2%$ 2,292,029$ 2,975,528$ (683,498)(23.0%)$ 1,058,050216.6%
Combined Divisions - Financial/Operating Ratios
DecemberDecemberYTD YTD 2019HUC
20192018Change20192018ChangeBudgetTarget
Gross Margin %33.1%15.5%17.6%33.1%32.5%0.6%32.8%26% - 28%
Operating Income Per Revenue $ (%)6.1%4.5%1.6%5.9%8.0%-2.1%4.2%1%-4%
Net Income Per Revenue $ (%):10.5%6.8%3.7%5.5%7.0%-1.5%2.5%0%-1%
Notes/Graphs:
It is usually difficult, at this point, to compare the months of December year over year due to year end entries that may not have been booked yet. However,
here are some key differences to help provide a better comparison.
GASB entries (OPEB) in December of 2018 caused Salaries & Benefits to reflect a lower amount compared to normal Salaries & Benefits as reflected
currently in December 2019. This was due to a $140,000 decrease in liabilities & expenses booked. This entry will still need to be made in 2019 and it appears
PERA had another good investment year which most likely means there will be another drop in the Salary & Benefits category in December of 2019.
Depreciation estimates were a little bit high throughout 2018 so an adjustment was made in December 2018 to record the correct amount. The 2019 number
is still an estimate. Operating expenses were higher in December 2018 due to recording the entire year of Roadway Lighting to the city and expensing some 2018
projects instead of capitalizing them. In 2019, the Roadway Lighting was booked more evenly throughout the year but there will most likely be some projects
expensed again that don't meet HUC's capital asset policy threshold amounts.
HUTCHINSON UTILITIES COMMISSION
ELECTRIC DIVISION
FINANCIAL REPORT FOR DECEMBER, 2019
December, 2019 MonthYear to Date 100% of Year Comp.
20192018Diff.% Chng20192018Diff.% Chng Full Yr Bud% of Bud
Electric Division
Customer Revenue$ 1,989,129$ 2,094,095$ (104,967)(5.0%)$ 25,020,236$ 25,491,453$ (471,217) (1.8%)$ 26,118,53095.8%
Sales for Resale$ 205,299$ 185,537 $ 19,76310.7%$ 2,773,852$ 3,071,099$ (297,247) (9.7%)$ 2,951,50094.0%
Other Revenues$ 55,044$ 25,436$ 29,607116.4%$ 291,483$ 273,149$ 18,3346.7%$ 203,500143.2%
Interest Income$ 84,421$ 80,649$ 3,7734.7%$ 336,966$ 255,502$ 81,46431.9%$ 158,456212.7%
TOTAL REVENUES$ 2,333,893$ 2,385,717$ (51,824)(2.2%)$ 28,422,536$ 29,091,203$ (668,667) (2.3%)$ 29,431,98696.6%
Salaries & Benefits$ 472,767$ 409,857 $ 62,90915.3%$ 4,547,306$ 4,603,316$ (56,010) (1.2%)$ 4,964,88491.6%
Purchased Power$ 1,138,264$ 1,200,732$ (62,468)(5.2%)$ 13,776,294$ 14,633,533$ (857,239) (5.9%)$ 13,640,000101.0%
Transmission$ 194,351$ 180,107 $ 14,2447.9%$ 2,856,868$ 2,454,965$ 401,90316.4%$ 3,380,00084.5%
Generator Fuel/Chem.$ 40,778$ 31,277$ 9,50130.4%$ 670,814$ 1,126,228$ (455,415) (40.4%)$ 1,139,85058.9%
Depreciation$ 241,667$ 112,363 $ 129,303 115.1%$ 2,900,000$ 2,770,697$ 129,3034.7%$ 2,900,000100.0%
Transfers (Elect./City)$ 147,172$ 128,224 $ 18,94714.8%$ 1,766,062$ 1,538,693$ 227,36914.8%$ 1,766,062100.0%
Operating Expense$ 144,274$ 411,144 $ (266,870)(64.9%)$ 1,665,855$ 1,637,126$ 28,7291.8%$ 1,749,49895.2%
Debt Interest$ 44,471$ 46,555$ (2,083) (4.5%)$ 556,573$ 562,765$ (6,192)(1.1%)$ 558,65799.6%
TOTAL EXPENSES$ 2,423,744$ 2,520,259$ (96,515)(3.8%)$ 28,739,771$ 29,327,323$ (587,551) (2.0%)$ 30,098,95195.5%
NET PROFIT/(LOSS)$ (89,851)$ (134,542)$ 44,691(33.2%)$ (317,235)$ (236,120)$ (81,115) 34.4%$ (666,965) 47.6%
December, 2019 MonthYear to Date 100% of Year Comp.
20192018Diff.% Chng20192018Diff.% Chng Full Yr Bud% of Bud
Electric Division
Residential4,482,3594,378,237 104,122 2.38%50,722,66551,777,707 (1,055,042) (2.04%) 50,327,925100.8%
All Electric331,239314,232 17,0075.41%2,634,4372,610,277 24,160 0.93% 2,504,213105.2%
Small General1,621,1211,613,143 7,9780.49%18,865,49519,106,510 (241,015) (1.26%) 17,687,385106.7%
Large General5,864,4906,635,140 (770,650)(11.61%)79,760,00079,540,430 219,570 0.28% 77,713,164102.6%
Industrial9,151,0008,575,000 576,000 6.72%118,891,000127,675,000 (8,784,000) (6.88%) 135,502,80087.7%
Total KWH Sold 21,450,209 21,515,752 (65,543) (0.30%) 270,873,597 280,709,924 (9,836,327)(3.50%) 283,735,48795.5%
Financial/Operating Ratios
DecemberDecemberYTD YTD 2019HUC
20192018Change20192018ChangeBudgetTarget
Gross Margin %21.6%-2.5%24.2%25.4%24.3%1.1%25.3%24% - 28%
Operating Income Per Revenue $ (%)-7.6%-7.8%0.2%-0.7%-0.1%-0.7%-0.9%0%-5%
Net Income Per Revenue $ (%):-3.8%-5.6%1.8%-1.1%-0.8%-0.3%-2.3%0%-5%
Customer Revenue per KWH:$0.0910$0.0956-$0.0046$0.0918$0.0903$0.0015$0.0915$0.0915
Total Power Supply Exp. per KWH:$0.0808$0.1094-$0.0286$0.0770$0.0775-$0.0005$0.0771$0.0771
Notes/Graphs:
Revenue was down in December 2019 due to collecting $87,953 less in power cost adjustment.
Sales for Resale of $205,299 consisted of $6,356 in market sales, $36,400 in the monthly tolling fee from Transalta, $13,043 in Transalta energy sales,
$136,000 in capacity sales to SMMPA and $13,500 in capacity sales to AEP. December 2018 Sales for Resale of $185,537 consisted of $9,026 in market
sales, $35,600 in monthly tolling fees from Transalta, $24,911 in Transalta energy sales, and $116,000 in capacity sales to SMMPA. December 2017 Sales
for Resale of $183,078 consisted of $33,992 in market sales, $34,400 in Transalta tolling fees, $18,686 in Transalta energy sales, and $96,000 SMMPA
capacity sales.
Overall Purchased Power decreased by $62,468. MRES purchases decreased by $33,298 and market purchases/MISO costs decreased by $29,170.
December power cost adjustment was $.00653/kwhr bringing in an additional $140,297 in revenue for the month and $1,880,384 YTD.
Last year's power cost adjustment for December 2018 generated $228,250 in additional revenue for the month and $1,685,104 YTD.
HUTCHINSON UTILITIES COMMISSION
GAS DIVISION
FINANCIAL REPORT FOR DECEMBER, 2019
December, 2019 MonthYear to Date 100% of Year Comp.
20192018Diff.% Chng20192018Diff.% Chng Full Yr Bud% of Bud
Gas Division
Customer Revenue$ 1,388,439$ 1,408,946$ (20,508) (1.5%)$ 10,636,433$ 11,080,727$ (444,294)(4.0%)$ 10,166,488104.6%
Transportation$ 83,137$ 82,259 $ 8781.1%$ 1,040,698 $ 940,990 $ 99,708 10.6%$ 885,452 117.5%
Electric Div. Transfer$ 54,982$ 54,697 $ 2850.5%$ 659,783$ 656,366 $ 3,4170.5%$ 659,783 100.0%
Other Revenues$ 80,486$ 33,882 $ 46,604137.5%$ 394,909$ 369,876 $ 25,033 6.8%$ 286,708 137.7%
Interest Income$ 82,641$ 77,860 $ 4,7816.1%$ 303,752$ 222,045 $ 81,707 36.8%$ 125,000 243.0%
TOTAL REVENUES$ 1,689,684$ 1,657,645$ 32,0391.9%$ 13,035,575$ 13,270,003$ (234,428)(1.8%)$ 12,123,431107.5%
Salaries & Benefits$ 180,160$ 100,225$ 79,93579.8%$ 1,607,165 $ 1,235,916$ 371,24830.0%$ 1,711,79793.9%
Purchased Gas$ 764,155$ 855,080$ (90,926) (10.6%)$ 5,961,040 $ 6,084,086$ (123,047)(2.0%)$ 5,515,179108.1%
Operating Expense$ 61,038$ 100,487$ (39,449) (39.3%)$ 734,320$ 666,719 $ 67,601 10.1%$ 1,041,94570.5%
Depreciation$ 85,417$ 109,788$ (24,371) (22.2%)$ 1,025,000 $ 1,033,788$ (8,788)(0.9%)$ 1,025,000100.0%
Transfers (City)$ 41,262$ 30,762 $ 10,50034.1%$ 495,145$ 369,142 $ 126,00334.1%$ 495,145 100.0%
Debt Interest$ 45,071$ 50,779 $ (5,708)0.0%$ 603,642$ 668,704 $ (65,063)(9.7%)$ 609,350 99.1%
TOTAL EXPENSES$ 1,177,102$ 1,247,122$ (70,019) (5.6%)$ 10,426,311$ 10,058,356$ 367,9553.7%$ 10,398,416100.3%
NET PROFIT/(LOSS)$ 512,582$ 410,524$ 102,05824.9%$ 2,609,265 $ 3,211,648$ (602,383)(18.8%)$ 1,725,015151.3%
December, 2019 MonthYear to Date 100% of Year Comp.
20192018Diff.% Chng20192018Diff.% Chng Full Yr Bud% of Bud
Gas Division
Residential69,213,19566,056,810 3,156,3854.78%458,153,032446,223,775 11,929,2572.67% 421,716,000108.6%
Commercial59,471,12046,727,452 12,743,668 27.27%365,411,303349,805,617 15,605,6864.46% 330,746,000110.5%
Industrial93,149,94685,468,593 7,681,3538.99%876,357,892857,732,882 18,625,0102.17% 822,478,000106.6%
Total CF Sold 221,834,261 198,252,855 23,581,406 11.89% 1,699,922,227 1,653,762,274 46,159,9532.79% 1,574,940,000107.9%
Financial/Operating Ratios
DecemberDecemberYTD YTD 2019HUC
20192018Change20192018ChangeBudgetTarget
Gross Margin %49.5%42.1%7.5%50.5%51.1%-0.6%51.5%37%-42%
Operating Income Per Revenue $ (%)25.9%22.8%3.2%20.8%26.3%-5.5%16.9%11%-16%
Net Income Per Revenue $ (%):33.6%26.6%7.0%21.2%25.3%-4.2%14.7%6%-11%
Contracted Customer Rev. per CF:$0.0039$0.0056-$0.0017$0.0039$0.0042-$0.0003$0.0038$0.0038
Customer Revenue per CF:$0.0078$0.0081-$0.0003$0.0085$0.0091-$0.0006$0.0090$0.0090
Total Power Supply Exp. per CF:$0.0035$0.0045($0.0010)$0.0036$0.0038($0.0002)$0.0036$0.0036
Notes/Graphs:
The biggest difference in the YTD revenues and net profit had to do with the credits given to customers being $443,911 larger in 2019. This was due to having to refill
the rate stabilization in early 2018 before credits could be issued. The rate stabilization fund was low at the time due to the price spike in December 2017.
December's fuel cost credit adjustment was $1.26199/MCF totalling $158,291 for the month and $1,042,219 YTD.
December 2018 credits totalled $145,696 for the month and $598,308 YTD.
HUTCHINSONUTILITIESCOMMISSION
BALANCESHEET-CONSOLIDATED
DECEMBER 31, 2019
ElectricGasTotalTotal Net Change
DivisionDivision20192018Total(YTD)
Current Assets
Cash 6,186,624.94 9,456,899.36 15,643,524.30 17,844,983.64 (2,201,459.34)
Petty Cash 680.00 170.00 850.00 850.00 -
Capital Expenditures - Five Yr. CIP 2,750,000.00 700,000.00 3,450,000.00 3,450,000.00 -
Payment in Lieu of Taxes 1,293,543.00 573,649.00 1,867,192.00 1,601,424.00 265,768.00
Rate Stabilization - Electric 372,736.68 - 372,736.68 372,736.68 -
Rate Stabilization - Gas - 651,306.61 651,306.61 651,306.61 -
Catastrophic Funds 400,000.00 100,000.00 500,000.00 500,000.00 -
Bond Interest Payment 2017 598,221.33 - 598,221.33 598,637.94 (416.61)
Bond Interest Payment 2012 - 166,320.80 166,320.80 164,895.82 1,424.98
Debt Service Reserve Funds 522,335.64 2,188,694.02 2,711,029.66 2,711,029.66 -
Total Current Assets 12,124,141.59 1 3,837,039.79 25,961,181.38 2 7,895,864.35 (1,934,682.97)
Receivables
Accounts (net of uncollectible allowances) 1,937,552.89 1,539,584.84 3,477,137.73 3,622,937.27 (145,799.54)
Interest 57,982.32 57,982.32 115,964.64 47,264.58 68,700.06
Total Receivables 1,995,535.21 1 ,597,567.16 3,593,102.37 3 ,670,201.85 (77,099.48)
Other Assets
1,432,183.46 455,512.61 1,658,746.69
Inventory 1,887,696.07 228,949.38
48,112.80 44,049.24 42,736.43
Prepaid Expenses 92,162.04 49,425.61
88,590.98 -
Sales Tax Receivable 88,590.98 33,089.44 55,501.54
Deferred Outflows - Electric 494,053.00 -
494,053.00 494,053.00 -
Deferred Outflows - Gas - 164,685.00
164,685.00 164,685.00 -
2,062,940.24 6 64,246.85 2,727,187.09 2 ,393,310.56 333,876.53
Total Other Assets
Total Current Assets 16,182,617.04 1 6,098,853.80 32,281,470.84 3 3,959,376.76 (1,677,905.92)
Capital Assets
Land & Land Rights 690,368.40 3,899,918.60 4,590,287.00 4,590,287.00 -
Depreciable Capital Assets 90,203,357.03 41,684,214.28 131,887,571.31 131,887,571.31 -
Accumulated Depreciation (58,071,384.26) (17,111,406.22) (75,182,790.48) (71,257,790.48) (3,925,000.00)
Construction - Work in Progress 17,140,691.75 418,905.00 17,559,596.75 12,860,910.23 4,698,686.52
Total Net Capital Assets 49,963,032.92 2 8,891,631.66 78,854,664.58 7 8,080,978.06 773,686.52
Total Assets 6 6,145,649.96 4 4,990,485.46 1 11,136,135.42 1 12,040,354.82 ( 904,219.40)
HUTCHINSONUTILITIESCOMMISSION
BALANCESHEET-CONSOLIDATED
DECEMBER 31, 2019
ElectricGasTotalTotal Net Change
DivisionDivision20192018Total(YTD)
Current Liabilities
Current Portion of Long-term Debt
Bonds Payable 645,000.00 1,455,000.00 2,100,000.00 1,995,000.00 105,000.00
Bond Premium - 185,608.32 185,608.32 185,608.32 -
Accounts Payable 1,936,763.36 1,018,062.23 2,954,825.59 4,002,240.56 (1,047,414.97)
Accrued Expenses
Accrued Interest 44,471.33 45,070.80 89,542.13 97,333.83 (7,791.70)
Accrued Payroll 66,358.24 22,315.77 88,674.01 73,005.47 15,668.54
Total Current Liabilities 2,692,592.93 2 ,726,057.12 5,418,650.05 6 ,353,188.18 (934,538.13)
Long-Term Liabilities
Noncurrent Portion of Long-term Debt
2017 Bonds 15,405,000.00 - 15,405,000.00 16,050,000.00 (645,000.00)
2012 Bonds - 11,075,000.00 11,075,000.00 12,530,000.00 (1,455,000.00)
Bond Premium 2012 599,437.20 1,098,182.19 1,697,619.39 1,916,684.67 (219,065.28)
Pension Liability - Electric 2,700,290.00 - 2,700,290.00 2,700,290.00 -
Pension Liability - Electric OPEB 72,192.00 - 72,192.00 72,192.00 -
Pension Liability - Nat Gas - 900,097.00 900,097.00 900,097.00 -
Pension Liability - Nat Gas OPEB - 24,064.00 24,064.00 24,064.00 -
Accrued Vacation Payable 380,134.01 146,202.28 526,336.29 477,451.52 48,884.77
Accrued Severance 81,360.39 33,739.79 115,100.18 106,630.34 8,469.84
Deferred Outflows - Electric 804,800.00 - 804,800.00 804,800.00 -
Deferred Outflows - Nat Gas - 268,267.00 268,267.00 268,267.00 -
Total Long-Term Liabilities 20,043,213.60 1 3,545,552.26 33,588,765.86 3 5,850,476.53 (2,261,710.67)
Net Position
Retained Earnings 43,409,843.43 28,718,876.08 72,128,719.51 69,836,690.11 2,292,029.40
Total Net Position 43,409,843.43 2 8,718,876.08 72,128,719.51 6 9,836,690.11 2,292,029.40
Total Liabilities and Net Position 66,145,649.96 4 4,990,485.46 111,136,135.42 1 12,040,354.82 (904,219.40)
Hutchinson Utilities Commission
Cash-Designations Report, Combined
12/31/2019
Change in
Financial Annual Balance, Balance, Cash/Reserve
InstitutionCurrent Interest RateInterestDecember 2019 November 2019 Position
Savings, Checking, Investmentsvariesvariesvaries 25,961,181.38 25,908,601.56 52,579.82
Total Operating Funds 25,961,181.38 25,908,601.56 52,579.82
Combined Division - Total Funds 25,961,181.38 25,908,601.56 52,579.82
Restricted Funds:
Debt Reserve RequirementsBond Covenants - sinking fund 764,542.13 500,000.01 264,542.12
Debt Reserve RequirementsBond Covenants -1 year Max. P & I 2,711,029.66 2,711,029.66 -
Total Restricted Funds 3,475,571.79 3,211,029.67 264,542.12
Excess Reserves Less Restrictions, Combined 22,485,609.59 22,697,571.89 (211,962.30)
Designated Funds:
Operating ReserveMin 60 days of 2020 Operating Bud. 5,981,005.00 6,086,812.00 (105,807.00)
Rate Stabalization Funds 1,024,043.29 1,024,043.29 -
PILOT FundsCharter (Formula Only) 1,867,192.00 1,601,424.00 265,768.00
Catastrophic FundsRisk Mitigation Amount 500,000.00 500,000.00 -
Capital Reserves5 Year CIP ( 2020-2024 Fleet & Infrastructure Maintenance) 3,450,000.00 3,450,000.00 -
Total Designated Funds 12,822,240.29 12,662,279.29 159,961.00
Excess Reserves Less Restrictions & Designations, Combined 9,663,369.30 10,035,292.60 (371,923.30)
Financial/Operating Ratios
YEYEYEYEYTDHUC
20152016201720182019Target
Debt to Asset32.4%32.2%40.2%37.7%35.1%<50%
Current Ratio2.523.063.363.935.19>2.0
RONA1.31%2.17%1.82%3.43%2.26%>0%
Notes/Graphs:
Change in Cash Balance (From 12/31/14 to 12/31/2019)
Month End ElectricElec. ChangeNatural GasGas Change TotalTotal Change
12/31/2019 12,124,142 13,837,040 25,961,181
12/31/2018 15,559,867 (3,435,725) 12,335,998 1,501,042 27,895,864 (1,934,683)
12/31/2017 23,213,245 (7,653,378) 10,702,689 1,633,309 33,915,934 (6,020,070)
12/31/2016 8,612,801 14,600,444 9,500,074 1,202,615 18,112,875 15,803,059
12/31/2015 6,170,790 2,442,011 9,037,373 462,701 15,208,163 2,904,712
12/31/2014 3,598,821 2,571,969 6,765,165 2,272,208 10,363,986 4,844,177
* 2017's Signifcant increase in cash balance is due to issuing bonds for the generator project.
Hutchinson Utilities Commission
Cash-Designations Report, Electric
12/31/2019
Change in
Financial Annual Balance, Balance, Cash/Reserve
InstitutionInterestDecember 2019 November 2019 Position
Current Interest Rate
Operating Funds:
Savings, Checking, Investmentsvariesvariesvaries 25,961,181.38 25,908,601.56 52,579.82
Total HUC Operating Funds 25,961,181.38 25,908,601.56 52,579.82
Electric Division - Total Funds 12,124,141.59 12,340,095.91 (215,954.32)
Restricted Funds:
Debt Restricted RequirementsBond Covenants - sinking fund 598,221.33 500,000.01 98,221.32
Debt Restricted RequirementsBond Covenants -1 year Max. P & I 522,335.64 522,335.64 -
Total Restricted Funds 1,120,556.97 1,022,335.65 98,221.32
Excess Reserves Less Restrictions, Electric 11,003,584.62 11,317,760.26 (314,175.64)
Designated Funds:
Operating ReserveMin 60 days of 2020 Operating Bud. 4,367,899.00 4,532,992.00 (165,093.00)
Rate Stabalization Funds$400K-$1.2K 372,736.68 372,736.68 -
PILOT FundsCharter (Formula Only) 1,293,543.00 1,106,279.00 187,264.00
Catastrophic FundsRisk Mitigation Amount 400,000.00 400,000.00 -
Capital Reserves5 Year CIP ( 2020-2024 Fleet & Infrastructure Maintenance) 2,750,000.00 2,750,000.00 -
Total Designated Funds 9,184,178.68 9,162,007.68 22,171.00
Excess Reserves Less Restrictions & Designations, Electric 1,819,405.94 2,155,752.58 (336,346.64)
Financial/Operating Ratios
YEYEYEYEYTDAPPA RatioHUC
201520162017201820195K-10K Cust.Target
Debt to Asset Ratio (* w/Gen.)13.9%16.7%35.4%35.7%34.4%50.1%<50%
Current Ratio2.953.574.363.635.412.43>2.0
RONA-1.2%-0.4%-0.6%-0.3%-0.5%NA>0%
Notes/Graphs:
Hutchinson Utilities Commission
Cash-Designations Report, Gas
12/31/2019
Change in
Financial Annual Balance, Balance, Cash/Reserve
InstitutionCurrent Interest RateInterestDecember 2019 November 2019 Position
Operating Funds:
Savings, Checking, Investmentsvariesvariesvaries25,961,181.3825,908,601.5652,579.82
Total HUC Operating Funds 25,961,181.38 25,908,601.56 52,579.82
Gas Division - Total Funds 13,837,039.79 13,568,505.65 268,534.14
Restricted Funds:
Debt Restricted RequirementsBond Covenants - sinking fund 166,320.80 - 166,320.80
Debt Restricted RequirementsBond Covenants -1 year Max. P & I 2,188,694.02 2,188,694.02 -
Total Restricted Funds 2,355,014.82 2,188,694.02 166,320.80
Excess Reserves Less Restrictions, Gas 11,482,024.97 11,379,811.63 102,213.34
Designated Funds:
Operating ReserveMin 60 days of 2020 Operating Bud. 1,613,106.00 1,553,820.00 59,286.00
Rate Stabalization Funds$200K-$600K 651,306.61 651,306.61 -
PILOT FundsCharter (Formula Only) 573,649.00 495,145.00 78,504.00
Catastrophic FundsRisk Mitigation Amount 100,000.00 100,000.00 -
Capital Reserves5 Year CIP ( 2020-2024 Fleet & Infrastructure Maintenance) 700,000.00 700,000.00 -
Total Designated Funds 3,638,061.61 3,500,271.61 137,790.00
Excess Reserves Less Restrictions & Designations, Gas 7,843,963.36 7,879,540.02 (35,576.66)
Financial/Operating Ratios
YEYEYEYEYTDHUC
20152016201720182019APGA RatioTarget
Debt to Asset55.0%51.2%47.6%40.7%36.2%TBD<50%
Current Ratio2.172.592.744.334.98TBD>2.0
RONA4.7%5.6%5.0%8.3%6.6%TBD>0%
Notes/Graphs:
HUTCHINSON UTILITIES COMMISSION
Investment Report
For the Month Ended December 31, 2019
InterestCurrentDate ofDate ofParCurrentPurchaseUnrealizedPremiumNext
InstitutionDescriptionRateYTMPurchaseMaturityValueValueAmountGain/(Loss)(Discount)Call Date
Wells FargoMoney Market0.890%0.890%NANA - 856.63 - - -N/A
Wells FargoCD's2.550%2.550%08/21/201802/21/2020 245,000.00 245,318.50 245,000.00 318.50 -N/A
Wells FargoCD's2.450%2.450%03/27/201903/27/2020 245,000.00 245,450.80 245,000.00 450.80 -N/A
Wells FargoCD's1.900%1.900%08/21/201908/23/2021 174,000.00 174,581.16 174,000.00 581.16 -N/A
Wells FargoCD's2.500%2.500%04/02/201904/05/2021 245,000.00 247,521.05 245,000.00 2,521.05 -N/A
Wells FargoCD's2.000%2.000%04/07/201610/07/2021 245,000.00 245,188.65 245,000.00 188.65 -04/07/2020
Wells FargoCD's2.000%2.000%10/07/201912/31/2020 245,000.00 245,225.40 245,000.00 225.40 -01/07/2020
Wells FargoCD's2.150%2.150%06/27/201706/27/2022 245,000.00 245,088.20 245,000.00 88.20 -01/27/2020
Wells FargoCD's2.000%2.000%08/22/201908/22/2022 200,000.00 199,740.00 200,000.00 (260.00) -03/29/2020
Wells FargoCD's1.700%1.700%12/30/201907/08/2020 60,000.00 60,000.00 60,000.00 - -N/A
Wells FargoCD's2.000%2.000%12/30/201901/24/2025 245,000.00 245,000.00 245,000.00 - -04/10/2020
Wells FargoFHLMC - Step 2.000%2.192%06/29/201706/29/2022 - - - - -Called
Wells FargoFHLMC - Step 2.000%2.256%10/27/201610/27/2023 1,025,000.00 1,024,795.00 1,025,000.00 (205.00) -01/27/2020
Broker Total25.8% 3,174,000.00 3,178,765.39 3,174,000.00 3,908.76 -
Cetera Investment ServicesMoney Market0.030%0.030%N/AN/A - 22,309.84 - - -N/A
Cetera Investment ServicesMunicipal Bonds2.995%2.073%03/07/201607/01/2020 250,000.00 251,605.00 260,835.21 (9,230.21) 10,835.21N/A
Cetera Investment ServicesMunicipal Bonds2.750%1.881%03/07/201608/01/2020 250,000.00 251,430.00 259,820.00 (8,390.00) 9,820.00N/A
Cetera Investment ServicesMunicipal Bonds5.000%1.610%10/11/201601/01/2020 250,000.00 250,000.00 276,500.00 (26,500.00) 26,500.00N/A
Cetera Investment ServicesMunicipal Bonds2.300%1.715%12/11/201710/01/2020 100,000.00 100,420.00 101,595.00 (1,175.00) 1,595.00N/A
Cetera Investment ServicesMunicipal Bonds2.875%2.121%04/29/201609/01/2021 250,000.00 253,937.50 259,467.50 (5,530.00) 9,467.50N/A
Cetera Investment ServicesMunicipal Bonds3.751%2.399%04/29/201611/01/2021 250,000.00 255,962.50 267,330.00 (11,367.50) 17,330.00N/A
Cetera Investment ServicesMunicipal Bonds3.139%2.190%12/11/201709/01/2021 300,000.00 305,619.00 310,116.00 (4,497.00) 10,116.00N/A
Cetera Investment ServicesMunicipal Bonds3.436%3.436%12/20/201812/15/2021 50,000.00 47,819.00 45,155.00 2,664.00 (4,845.00) N/A
Cetera Investment ServicesMunicipal Bonds2.655%2.208%12/11/201703/01/2022 300,000.00 305,058.00 305,314.92 (256.92) 5,314.92N/A
Cetera Investment ServicesMunicipal Bonds3.000%3.118%12/20/201808/01/2022 50,000.00 51,214.50 50,377.67 836.83 377.67
N/A
Cetera Investment ServicesMunicipal Bonds3.633%3.116%12/20/201809/01/2022 250,000.00 259,465.00 257,217.48 2,247.52 7,217.48N/A
Cetera Investment ServicesMunicipal Bonds3.240%3.240%11/17/201702/15/2023 80,000.00 74,159.20 69,633.48 4,525.72 (10,366.52) N/A
Cetera Investment ServicesMunicipal Bonds3.650%3.004%12/20/201802/01/2023 250,000.00 260,230.00 256,165.00 4,065.00 6,165.00N/A
Cetera Investment ServicesMunicipal Bonds3.075%3.236%12/20/201806/01/2023 50,000.00 51,333.00 49,746.15 1,586.85 (253.85)
N/A
Cetera Investment ServicesMunicipal Bonds2.500%3.181%12/20/201808/01/2023 35,000.00 35,595.70 34,320.05 1,275.65 (679.95)
N/A
Cetera Investment ServicesMunicipal Bonds3.400%3.148%12/20/201811/01/2023 125,000.00 128,457.50 126,376.25 2,081.25 1,376.25N/A
Cetera Investment ServicesMunicipal Bonds3.400%3.148%12/20/201811/01/2023 65,000.00 66,797.90 65,715.65 1,082.25 715.65 N/A
Cetera Investment ServicesMunicipal Bonds5.290%2.724%04/18/201906/01/2023 260,000.00 284,928.80 291,059.96 (6,131.16) 31,059.96N/A
Cetera Investment ServicesMunicipal Bonds2.854%3.173%12/20/201802/01/2024 100,000.00 102,467.00 99,605.96 2,861.04 (394.04) N/A
Cetera Investment ServicesMunicipal Bonds2.977%3.246%12/20/201803/15/2024 250,000.00 256,720.00 248,743.99 7,976.01 (1,256.01) N/A
Cetera Investment ServicesMunicipal Bonds3.922%3.429%12/20/201812/01/2024 204,000.00 216,941.76 257,122.49 (40,180.73) 53,122.49N/A
Cetera Investment ServicesMunicipal Bonds5.742%3.658%04/11/201908/01/2024 430,000.00 473,412.80 555,382.50 (81,969.70) 125,382.50N/A
Cetera Investment ServicesMunicipal Bonds4.400%3.221%04/11/201907/01/2025 500,000.00 537,625.00 539,101.11 (1,476.11) 39,101.1107/01/2023
Cetera Investment ServicesMunicipal Bonds5.640%3.007%04/18/201908/15/2025 205,000.00 176,263.10 169,737.95 6,525.15 (35,262.05) N/A
Cetera Investment ServicesMunicipal Bonds3.743%2.740%04/18/201909/15/2025 215,000.00 229,069.60 228,334.53 735.07 13,334.53N/A
Cetera Investment ServicesMunicipal Bonds3.379%1.934%08/19/201910/01/2025 310,000.00 324,380.90 339,739.18 (15,358.28) 29,739.18N/A
Cetera Investment ServicesMunicipal Bonds4.250%3.258%04/11/201901/01/2026 500,000.00 528,855.00 529,769.03 (914.03) 29,769.03N/A
Cetera Investment ServicesMunicipal Bonds6.690%3.356%04/18/201904/15/2026 60,000.00 50,426.40 47,545.20 2,881.20 (12,454.80) N/A
Cetera Investment ServicesMunicipal Bonds3.250%2.903%04/18/201908/01/2026 500,000.00 514,455.00 514,790.69 (335.69) 14,790.69N/A
Cetera Investment ServicesMunicipal Bonds2.150%2.203%07/01/201912/01/2026 40,000.00 39,358.80 40,150.64 (791.84) 150.64
N/A
Cetera Investment ServicesMunicipal Bonds2.350%2.191%07/01/201912/01/2026 500,000.00 500,075.00 505,385.00 (5,310.00) 5,385.00N/A
Cetera Investment ServicesMunicipal Bonds2.375%1.816%09/04/201912/01/2026 90,000.00 88,795.80 93,395.70 (4,599.90) 3,395.70N/A
Cetera Investment ServicesMunicipal Bonds3.000%1.991%08/19/201902/01/2027 50,000.00 51,917.50 53,551.00 (1,633.50) 3,551.00N/A
Cetera Investment ServicesMunicipal Bonds3.150%2.034%08/19/201903/15/2027 100,000.00 105,381.00 109,138.50 (3,757.50) 9,138.50N/A
Cetera Investment ServicesMunicipal Bonds3.332%3.120%04/18/201904/15/2027 500,000.00 525,220.00 507,783.94 17,436.06 7,783.94N/A
Cetera Investment ServicesMunicipal Bonds3.553%2.289%08/19/201905/01/2027 55,000.00 57,806.10 60,468.04 (2,661.94) 5,468.0405/01/2026
Cetera Investment ServicesMunicipal Bonds3.865%2.470%08/19/201905/01/2027 55,000.00 58,524.40 60,986.48 (2,462.08) 5,986.4805/01/2025
Cetera Investment ServicesMunicipal Bonds2.817%2.817%09/25/201910/01/2027 35,000.00 26,695.55 27,969.55 (1,274.00) (7,030.45)
05/01/2025
Cetera Investment ServicesMunicipal Bonds3.230%1.828%08/19/201905/15/2027 145,000.00 153,463.65 160,827.31 (7,363.66) 15,827.31N/A
Cetera Investment ServicesMunicipal Bonds3.270%2.141%08/19/201903/15/2028 155,000.00 162,489.60 60,468.04 102,021.56 (94,531.96) 09/15/2027
Cetera Investment ServicesMunicipal Bonds2.974%2.574%11/07/201904/01/2028 75,000.00 74,503.50 77,253.00 (2,749.50) 2,253.00N/A
Cetera Investment ServicesMunicipal Bonds3.140%2.004%08/19/201908/01/2028 500,000.00 517,610.00 547,105.00 (29,495.00) 47,105.0008/01/2027
Cetera Investment ServicesMunicipal Bonds3.000%1.942%08/19/201906/01/2029 115,000.00 119,779.40 125,961.80 (6,182.40) 10,961.80N/A
Broker Total74.2% 8,854,000.00 9,148,579.30 9,247,061.95 (120,792.49) 393,061.95
TOTAL INVESTMENTS100.0%$ 12,028,000.00$ 12,327,344.69$ 12,421,061.95$ (116,883.73)$ 393,061.95
PORTFOLIO BY PRODUCT TYPEMATURITY SCHEDULE
12/31/2019% of11/30/2019% ofMonthlyMaturityCurrent Value%
Product TypeTotal ValueTotalTotal ValueTotalChangeLess than 1 year$1,427,390.7711.6%
Money Market$23,166.470.2%$31,463.280.3%($8,296.81)1 - 2 years1,775,854.2614.4%
CD's2,153,113.7617.5%1,848,995.4615.0%304,118.302 - 3 years1,060,565.708.6%
Government Bonds1,024,795.008.3%1,300,186.0010.5%(275,391.00)3 - 4 years 1,926,297.1015.6%
Municipal Bonds9,126,269.4674.0%9,160,185.0274.2%(33,915.56)4 - 5 years1,049,541.568.5%
TOTAL$12,327,344.69100.0%$12,340,829.76100.0%($13,485.07)5+ years5,087,695.3041.3%
TOTAL$12,327,344.69100.0%
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ELECTRIC DIVISION
Operating Revenue
December 2019
CLASSAMOUNTKWH$/KWH
Street Lights$53.46981$0.05450
Electric Residential Service$473,197.114,482,359$0.10557
All Electric Residential Service$32,693.12331,239$0.09870
Electric Small General Service$167,239.571,621,121$0.10316
Electric Large General Service$553,585.645,864,490$0.09440
Electric Large Industrial Service$725,514.039,151,000$0.07928
Total$1,952,282.93 21,451,190$0.09101
Power Adjustment$0.00653
Rate Without Power Adjustment$0.08448
Electric Division Year-to-Date
2019 $ Amount2018 $ Amount2019 KWH/102018 KWH/10
33,000,000
32,000,000
31,000,000
30,000,000
29,000,000
28,000,000
27,000,000
26,000,000
25,000,000
24,000,000
23,000,000
22,000,000
21,000,000
20,000,000
19,000,000
18,000,000
17,000,000
16,000,000
15,000,000
14,000,000
13,000,000
12,000,000
11,000,000
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Street LightsResidentialAll Elec.Small Gen.Large Gen.LargeFor Resale Total
Resid.Srv.Srv.Industrial
NOTE: Sales for resale includes capacity sales, market sales and Transalta sales.
NATURAL GAS DIVISION
Operating Revenue
DECEMBER 2019
CLASSAMOUNTMCF$/MCF
Residential$542,493.5869,213$7.83803
Commercial$456,692.1859,471$7.67924
Large Industrial$41,911.444,785$8.75892
Large Industrial Contracts$347,341.3788,365$3.93076
Total$1,388,438.57221,834$6.25891
Fuel Adjustment-$1.26000
Rate Without Fuel Adjustment$7.51891
Natural Gas Division Year-to-Date
2019 $ Amount2018 $ Amount2019 MCF2018 MCF
12,000,000
11,000,000
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Gas ResidentialGas CommercialLarge IndustrialLarge Industrial Total
Contracts
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
ReviewPolicies
Presenter: Agenda Item Type:
Jeremy Carter
ReviewPolicies
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
AspartofHUC'sstandardoperatingprocedures,acontinualpolicyreviewispracticed.
Thismonth,thefollowingpolicieswerereviewedandnochangesarerecommendedon
thesepoliciesatthis time:
Section 1 of ExemptHandbook
Section1ofNon-ExemptHandbook
BOARD ACTION REQUESTED:
None
Fiscal Impact:
Included in current budget: Budget Change:
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
EXEMPT
SECTION 1 - INTRODUCTION
We are pleased to welcome you to the Hutchinson Utilities Commission.
This Handbook has been prepared to familiarize you with our operating policies and procedures as well
as your responsibilities as an employee.
We hope you will find your work interesting and rewarding. When you become an employee of
Hutchinson Utilities Commission, you represent Hutchinson Utilities to our customers and the general
public. We should strive to show the best image possible.
Should you have any questions regarding policies or procedures, kindly talk with your Director, Manager
or Supervisor.
WELCOME TO
HUTCHINSON UTILITIES COMMISSION
W HAT IS H UTCHINSON U TILITIES C OMMISSION?
The Municipal Electric Light Plant was established in 1935 as a result of a special election authorizing
the establishment of a new generating plant and distribution system through a bond issue of $250,000 to
pay for the construction. The vote was 1,187 for and 128 against. Contracts were awarded for the
construction of a new power plant building at the intersection of State Highways 7 and 15. The contract
included three (3) 625 hp 430 kw diesel generating units, switchboard, a complete distribution system
and other auxiliary equipment. On November 28 1936, construction was completed and by January of
1937, over 600 customers were connected. By the end of March, the system was serving 1,171.
The City Charter was amended in 1935 to create a Utilities Commission to manage and operate the
system.
In 1960, the City constructed a natural gas distribution system, buying natural gas from Northern Natural
Gas Company, and selling it to the citizens of Hutchinson and the surrounding rural area. Natural gas
was also used in firing the dual generating units of the light plant.
In 2003, in order to control natural gas transportation costs, Hutchinson Utilities constructed a high
pressure natural gas transmission pipeline to serve this community.
This transmission line is interconnected with Northern Border Pipeline near Trimont, Minnesota which
allows Hutchinson Utilities to transport natural gas to its customers in addition to other municipal utilities
and industrial end users located along the pipeline corridor.
Since 1936, the Hutchinson Utilities Commission, consisting of three (3) qualified voters of the City of
Hutchinson, has operated the Municipal Electric Plant and the Natural Gas Distribution System. It was
established by Section 17 of the City Charter that the Commissioners be appointed by the City Council,
one (1) every two years, for a six year term. No Commissioner can serve more than two (2) successive
terms. The Commission elects a President, Vice President, and Secretary.
In November of 1987, the City Charter was amended to expand the Utilities Commission to a five (5)-
than two (2) successive terms.
The City Charter gives the Commission full, absolute and exclusive control of and power over the
Electric and Natural Gas Operations of Hutchinson Utilities. The Commission hires a General Manager
to manage the day-to-day operation of the Utilities.
The Hutchinson Utilities Commission has, for many years, made substantial cash contributions to the
General Fund of the City of Hutchinson from surplus earnings of both the electric and gas divisions of
the Utilities.
Hutchinson Utilities Commission has provided and will continue to provide to its customers, electricity
and natural gas at the lowest possible cost.
P URPOSE OF THIS H ANDBOOK
The contents of this Employee Handbook are for information only. The Hutchinson Utilities Commission
does not intend to create a contract by the publication and issuance of this Handbook and under no
The Commission reserves the right to change the policies and procedures in this Handbook at any time
without notice.
D EFINITIONS
In this Handbook, the following terms shall have the meanings as listed below:
Utilities Commission.
service workers.
defined in the Fa
overtime provisions of the FLSA.
Commission.
gnificant other, parent, stepparent, guardian, child, adult, adult
child, stepchild, sibling, grandparent, grandchild, and any in-law.
-
wage and overtime provisions of the FLSA.
-
position who is not temporary or probationary and who is regularly scheduled to work 40 hours during a
work week. Generally, regular full-time employees are eligible for Utility benefit programs subject to the
terms, conditions and limitations of each benefit program.
-time employee with Hutchinson
Utilities.
Manager, Engineering Services Manager, Financial Manager, Accountant, Administrative Coordinator,
Purchasing / Inventory Agent, Computer Systems Analyst, Energy Conservation Administrator, and
Accounts Supervisor.
of 24 weeks per year, even if not consecutive weeks. Temporary positions are eligible for legally
mandated benefits such as Social Security but are ineligible for Utility benefit programs.
NON-EXEMPT
SECTION 1 - INTRODUCTION
We are pleased to welcome you to the Hutchinson Utilities Commission.
This Handbook has been prepared to familiarize you with our operating policies and procedures as well
as your responsibilities as an employee.
We hope you will find your work interesting and rewarding. When you become an employee of
Hutchinson Utilities Commission, you represent Hutchinson Utilities to our customers and the general
public. We should strive to show the best image possible.
Should you have any questions regarding policies or procedures, kindly talk with your Director or
Manager.
WELCOME TO
HUTCHINSON UTILITIES COMMISSION
W HAT IS H UTCHINSON U TILITIES C OMMISSION?
The Municipal Electric Light Plant was established in 1935 as a result of a special election authorizing
the establishment of a new generating plant and distribution system through a bond issue of $250,000 to
pay for the construction. The vote was 1,187 for and 128 against. Contracts were awarded for the
construction of a new power plant building at the intersection of State Highways 7 and 15. The contract
included three (3) 625 hp 430 kw diesel generating units, switchboard, a complete distribution system
and other auxiliary equipment. On November 28 1936, construction was completed and by January of
1937, over 600 customers were connected. By the end of March, the system was serving 1,171.
The City Charter was amended in 1935 to create a Utilities Commission to manage and operate the
system.
In 1960, the City constructed a natural gas distribution system, buying natural gas from Northern Natural
Gas Company, and selling it to the citizens of Hutchinson and the surrounding rural area. Natural gas
was also used in firing the dual generating units of the light plant.
In 2003, in order to control natural gas transportation costs, Hutchinson Utilities constructed a high
pressure natural gas transmission pipeline to serve this community.
This transmission line is interconnected with Northern Border Pipeline near Trimont, Minnesota which
allows Hutchinson Utilities to transport natural gas to its customers in addition to other municipal utilities
and industrial end users located along the pipeline corridor.
Since 1936, the Hutchinson Utilities Commission, consisting of three (3) qualified voters of the City of
Hutchinson, has operated the Municipal Electric Plant and the Natural Gas Distribution System. It was
established by Section 17 of the City Charter that the Commissioners be appointed by the City Council,
one (1) every two years, for a six year term. No Commissioner can serve more than two (2) successive
terms. The Commission elects a President, Vice President, and Secretary.
In November of 1987, the City Charter was amended to expand the Utilities Commission to a five (5)-
than two (2) successive terms.
The City Charter gives the Commission full, absolute and exclusive control of and power over the Electric
and Natural Gas Operations of Hutchinson Utilities. The Commission hires a General Manager to manage
the day-to-day operation of the Utilities.
The Hutchinson Utilities Commission has, for many years, made substantial cash contributions to the
General Fund of the City of Hutchinson from surplus earnings of both the electric and gas divisions of
the Utilities.
Hutchinson Utilities Commission has provided and will continue to provide to its customers, electricity
and natural gas at the lowest possible cost.
P URPOSE OF THIS H ANDBOOK
The contents of this Employee Handbook are for information only. The Hutchinson Utilities Commission
does not intend to create a contract by the publication and issuance of this Handbook and under no
The Commission reserves the right to change the policies and procedures in this Handbook at any time
without notice.
D EFINITIONS
In this Handbook, the following terms shall have the meanings as listed below:
plant operators, system controllers, line workers, and natural gas
service workers.
to the minimum wage and
overtime provisions of the FLSA.
Commission.
ult child,
stepchild, sibling, grandparent, grandchild, and any in-law.
-
wage and overtime provisions of the FLSA.
-oyee who has been appointed to an authorized, budgeted
position who is not temporary or probationary and who is regularly scheduled to work 40 hours during a
work week. Generally, regular full-time employees are eligible for Utility benefit programs subject to the
terms, conditions and limitations of each benefit program.
-time employee with Hutchinson
Utilities.
Transmission/Distribution
Manager, Engineering Services Manager, Financial Manager, Accountant, Administrative Coordinator,
Purchasing / Inventory Agent, Computer Systems Analyst, Energy Conservation Administrator, and
Accounts Supervisor.
of 24 weeks per year, even if not consecutive weeks. Temporary positions are eligible for legally
mandated benefits such as Social Security but are ineligible for Utility benefit programs.
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
ApproveLatestVersionofITPolicy
Presenter:Agenda Item Type:
JeremyCarter
NewBusiness
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
HUCapprovedanITpolicybackin2012thatwaslimitedinscopetojustHUC.The
revisedupdatedITpolicycompletedbytheITDirectorconsolidatestheCityof
HutchinsonandHutchinsonUtilitiesCommissionunderthesamepolicylanguage.This
latestversionismoreextensiveinrelationtocybersecurity,recordsretentionandoverall
protocolsrelatedtoIT.
BOARD ACTION REQUESTED:
ApproveRevisedITPolicy
Fiscal Impact:
Included in current budget: Budget Change:
No
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
Marc Sebora
Presenter:Agenda Item Type:
5
Time Requested (Minutes):
Yes
Attachments:
BACKGROUND/EXPLANATION OF AGENDA ITEM:
BOARD ACTION REQUESTED:
None
Fiscal Impact:
Included in current budget: Budget Change:
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
CHAPTER 11
Public Ownership and Operations of Utilities
Section 11.01. CONTROL AND MANAGEMENT. The Hutchinson Utilities Commission
of the City of Hutchinson shall have control and management of the Electric Plant, the
Electric Plant distribution system, the Gas Plant and the Gas Distribution system in the
City of Hutchinson.
Section 11.02. APPOINTMENT AND TERMS. The commission shall consist of five (5)
persons, registered voters of Hutchinson, or who are owners of a business whose
principal place of business is within the City of Hutchinson which is a rate-payer of the
Utilities Commission who shall be appointed by the council. One of the members may
be a member of the city council appointed annually by the mayor with the consent of the
city council, at the first meeting of the city council in January of each year. After initial
appointments for such terms as are set by the council, a member shall be appointed every
year for a term of 5 years, to fill the place of the member whose term has expired, except
for any city council member appointed to serve on the Utilities Commission, and in such
case, that person shall serve a one year term subject to reappointment. The
commissioners in office at the time of adoption of this charter shall continue to serve the
term to which they were previously appointed. Commissioners shall qualify for their office
by taking and subscribing to the oath of office required of members of the council and
filing the same with city administrator. They shall hold office until their successors are
appointed and qualified and vacancies in office for any cause shall be filled for the balance
of the term in which the vacancy occurs in the same manner as the original appointment
is made. No member shall serve more than two consecutive five-year terms, exclusive
of the fulfillment of an unexpired term, but shall be again eligible for such service following
a break in service of not less than one year. The members of the commission, excluding
the city council member, may receive compensation for their services as determined by
the council.
Section 11.03. ORGANIZATION. The commission shall provide for its own organization
and rules of procedure and annually shall elect a president and vice-president from
among its members who shall perform the usual duties of those positions, under the
direction of the commission. It shall also appoint a secretary who may or may not be a
member of the commission. All monies received for gas and electric services rendered
shall be deposited in a separate municipal Electric Plant Fund and Natural Gas Division
Fund. The commission shall keep record of the monies (above mentioned) and pay them
out only upon verified orders and upon warrants signed by two members of the
commission.
Section 11.04. POWERS OF THE COMMISSION. The commission shall have full,
absolute and exclusive control of power over the City Electric Plant, the City Electric Plant
distribution system, the City Gas Plant and the City Gas distribution system. The
commission shall buy all materials, supplies and fuel in accordance with the charter
provisions for purchases and contracts. It may enter into contracts subject to the same
limitations imposed on the city council, and may sue and be sued in its own name. It shall
regulate the distribution, use and sale of electricity and gas within and without the city
limits, collect for services, and shall fix the rates for all such sales and services for public
and private use, subject to right of the council to veto any proposed charge and rate by a
four-fifths vote. Such veto power shall be exercised, if at all, within 30 days after the
council has received notice of any proposed change in charge and rate. The commission
shall have power and authority to extend, add to, change or modify the electric system
and the gas system, and to do any and all things it may deem necessary and proper for
operation except as by this chapter otherwise restricted or qualified. The cost of extended
service or installation thereof shall in no case create any general obligation upon the City.
It shall employ such competent help as may be necessary to properly operate the plant,
and pay these employees such compensation as the commission deems proper. The
commission shall not have power to sell, lease, rent or in any way dispose of or encumber
or permit the electric plant or the gas system to come under the control of any person or
corporation whatever. The commission may pledge the net earnings of the electric plant
and/or gas plant and system, after providing for the payment of all operating and
maintenance charges and setting aside annually an amount sufficient to meet the interest
and principal required of any previously created obligations of the plant, to secure
payment of any previously created obligations of the plant, to secure payment of any
equipment purchased for said plants and systems.
Section 11.05. TRANSFER OF FUNDS. On or before September 1 of each year, the
commission and the city council shall exchange information regarding the financial
resources and financial needs of both the commission and the City, and shall reach
agreement on the amount of surplus utility funds, if any, which are reasonably available
for transfer to the general fund of the City during the next calendar year. Surplus utility
funds reasonably available shall be transferred to the city general fund.
It shall be mandatory upon the commission to transfer funds from earnings to the City to
meet all interest and support principal required on obligations of the City incurred by the
City in the construction of the gas and electric plants and systems. Such funds shall not
be considered surplus funds. Funds so turned over to the City by the commission shall,
during such time as the bonded indebtedness remains currently unpaid in connection with
construction of the gas and electric plants and systems, be used solely for the purpose of
retiring such currently unpaid indebtedness.
Section 11.06. BY-LAWS AND REGULATIONS. The commission may make and
enforce such reasonable by-laws and regulations as may be necessary to carry into effect
the objectives and purposes of this chapter. All such by-laws and regulations are to be
entered in a book kept for that purpose by the secretary and signed by the president and
secretary.
Section 11.07. REPORTS. The commission shall keep a record of all of its financial
operations and shall furnish monthly to the city council summarized statements showing
receipts, disbursements, and liabilities for such period of time. The commission shall
publish a summarized audited annual statement in the official city newspaper. Such
statement shall be prepared by a certified public accountant.
Section 11.08. REMOVAL OF COMMISSIONERS. If a commissioner is guilty of
malfeasance or misfeasance in office, has become incapacitated to hold office, or ceases
to be a resident of the City of Hutchinson, and such fact is brought to the City Council by
council investigation or a petition of ten (10) or more voters of the City of Hutchinson, the
commissioner may be removed from office by a four-fifths (4/5) majority vote of the
council. Upon the filing of any such fact, together with a copy of such charges, such
commissioner shall be notified of the time and place where the council will meet to
consider such charges. Notice shall be given at least ten days before the meeting, at
which time such commissioner shall have the right to be present and produce testimony
and evidence. No member of the commission shall continue in office after the loss of any
qualification required for appointment to that position.
Section 11.09. SALE OF PUBLIC UTILITY. The public utility owned by the City shall
not be sold or otherwise disposed of by the City unless the full terms of the proposition of
sale or other disposition are embodied in an ordinance approved by the city council and
by a majority of the voters voting thereon at a general or special municipal election.
Approval by the voters as described herein shall not apply to the sale or other disposition
of component parts of the public utility which are no longer needed for public utility
purposes.
Section 11.10. FISCAL YEAR. The fiscal year of the Hutchinson Utilities Commission
shall be the calendar year.
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
Approval of Requisition 008255 to WSB for 2020 Geohazard Program
Presenter:Agenda Item Type:
John Webster
Time Requested (Minutes):
1
Attachments:
BACKGROUND/EXPLANATION OF AGENDA ITEM:
BOARD ACTION REQUESTED:
Approval of Requisition 008255.
Fiscal Impact:$40,016
Included in current budget: Budget Change:
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
ARequisition 8256 to Energy Economics, Inc for Sonic Nozzle Prover
Presenter:Agenda Item Type:
John Webster
New Business
Time Requested (Minutes):
1
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
BOARD ACTION REQUESTED:
Approval of Requisition 008256
Fiscal Impact:$44,350
Included in current budget: Budget Change:
Yes
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
$15,650
$60,000
Sonic Nozzle Proving System
Measurement
EEIElsterSystems
Prover (1,000 cfh Capacity)$37,400.00$52,900.00$39,845.00
Connector Adapter - 20 LT IncludedIncluded$425.00
Connector Adapter - 30 LT IncludedIncluded$425.00
Connector Adapter - 45 LT IncludedIncluded$425.00
Index Photo-Electric Sensor Included$750.00$1,290.00
Pressure Pulse Proving Module IncludedIncluded$1,370.00
Prover Upgrade to Test Dresser D800 Meters IncludedIncluded$810.00
Installation & Training$1,750.00$2,900.00$1,000.00
Crating and Shipping Included$650.00
Travel and Expenses Included$950.00
Vacuum Pump$5,200.00$7,800.00$3,760.00
Total$44,350.00$64,350.00$50,950.00
Optional Items
Extended Maintenance Support (per year)$2,900.00 NANA
After first Year
Delivery10 - 12 Wks10 - 12 Wks10 - 12 Wks
Does not
include
Travel
Expenses
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
Approval of Requisition 008263 to Nelson Technologies, Inc
Presenter:Agenda Item Type:
John Webster
New Business
Time Requested (Minutes):
1
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
BOARD ACTION REQUESTED:
Approval of Requisition 008263
Fiscal Impact:$29,988
Included in current budget: Budget Change:
Yes
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
Requisition#8267for2020JohnDeere310SLtractorbackhoe.
Presenter:Agenda Item Type:
Dave
Time Requested (Minutes):
5
Attachments:
BACKGROUND/EXPLANATION OF AGENDA ITEM:
Aspartofourfleetmanagementprogram,HUCwillbereplacingthe2006JohnDeere
310TractorBackhoe.
Wequoted3manufacturers:
1)ZeiglerCat-$118739.09plustaxesandfees
2)Case-$111248.18plustaxesandfees
3)JohnDeere-$101352.70plustaxesandfees
The2020budgetis$110000.00.Werecommendpurchasingthe2020JohnDeere310
SLRequisition#8267.
BOARD ACTION REQUESTED:
Approve Requisition#8267
Fiscal Impact:
107,940.63
Included in current budget: Budget Change:
No
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
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Quotation
DATE10/21/2019
Tim Pittman
6340 Hwy 101Field Marketer
Shakopee Mn 55379 Timothy.pittman@titanmachinery.com
612-708-4578 - Mobile
952-445-5400 - Office
Hutchinson Utilities952-445-0365 - Fax
Attn Brendan Olson
Hutchinson MN
Description
QuantityTotal
2020 Case 580SN TLB 4x4 Cab w/ Heat AC
1$ 128,884.00
4Wd Power Shift S type
$ 2,370.00
12X16.5 Front tires
inc
19.5LX24 rear tires
inc
2 way auxilary controls and Extendahoe PKG
$ 9,171.00
Heavy Front Counterweight
$ 500.00
Pilot Controls (Includes Power Lift)
$ 3,308.00
24" rear bucket
$ 1,325.00
Flip over Pads
$ 816.00
93" Loader bucket w/ BOE
$ 2,600.00
Ride Control and Comfort Steer
$ 1,762.00
Cab LH Door w/ Heat and AC
$ 9,067.00
Premium Air Susp Seat w/ Heat
$ 848.00
LED Light Package
$ 862.00
Front Fenders$ 419.00
Sub Total$ 161,932.00
Less State Bid discount 38.5%$ (62,343.82)
Total$ 99,588.18
Kent/Furakawa Hammer/Breaker$ 11,660.00
1 year full Machine Warranty 2 Year Engine Warranty
$ (35,000.00)
Less 2006 JD 310SG w/ Breaker
TOTAL $ 76,248.18
PLUS TAX
If you have any questions concerning this quotation, please contact me at the number noted above.
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
ApproveRequisition#8274for2020Chevrolet2500HD4x4pickup
Presenter:Agenda Item Type:
RandyBlake
NewBusiness
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
Aspartofourfleetmanagementprogram,theproductiondepartmenttruck#990isdue
tobereplaced.KarlChevroletdealershipinIowaistheGovernmentfleetsupplierfor
Chevrolettrucks.Thisrequisitionisfora2020Chevrolet2500HD4X4worktruck.The
MSRPonthistruckis$41,405.00andthroughthestatebidgovernmentdiscountsthe
costwillbe$29,172.94.Wehavebudgeted$30,000.00inour2020CIPforthisvehicle.
BOARD ACTION REQUESTED:
ApproveRequisition#008274fora2020Chevrolet2500HD4X4pickup
Fiscal Impact:
$29,172.94
Included in current budget: Budget Change:
Yes
No
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
0
$28,019.00
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
ApproveRequisition#8278-2020Chevrolet1500CrewCab4x4workcab
Presenter:Agenda Item Type:
RandyBlake
NewBusiness
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
Aspartofourfleetmanagementprogram,theproductiondepartmenttruck#542isdue
tobereplaced.KarlChevroletdealershipinIowaistheGovernmentfleetsupplierfor
Chevrolettrucks.Thisrequisitionisfora2020Chevrolet1500crewcab4X4worktruck.
TheMSRPonthistruckis$43,615.00andthroughthestatebidgovernmentdiscounts
thecostwillbe$29,645.24.Wehavebudgeted$30,000.00inour2020CIPforthis
vehicle.
BOARD ACTION REQUESTED:
ApproveRequisition#008278fora2020Chevrolet1500CrewCab4x4Worktruck
Fiscal Impact:
$29,645.24
Included in current budget: Budget Change:
Yes
No
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
0
$29,645.24
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
Replace2008ServiceTruck#574
Presenter:Agenda Item Type:
Dave
NewBusiness
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
Aspartofourfleetmanagementprogram,HUCwillbereplacingthe2008servicetruck
fortheelectricdepartment.
ThepurchasewillRequiretwoseparaterequisitions,onefortheCab/Chassisandone
fortheservicebody.T
Requisition8280isfortheCab/ChassisfromKarlChevroletStateContract168929
Requisition8281isfortheServiceBodyfromABMEquipmentStateContract167794
The2020budgetis$65,000.00forboththeCab/ChassisandServiceBody.TheState
contractpricefortheCab/Chassisis$41,293.65.Thestatecontractpricefortheservice
bodyis$23,539.70.Thetotalwillbe$64,833.35withalltaxesandfees.
BOARD ACTION REQUESTED:
ApproveRequisition8280and8281
Fiscal Impact:
64,833.35
Included in current budget: Budget Change:
Yes
No
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
ApproveRequisition#8285fortwoAtlasCopcoinstrumentaircompressors
Presenter:Agenda Item Type:
RandyBlake
NewBusiness
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
AftertheinstallationandcommissioningofournewCaterpillarunits6and7,we
discoveredwhenrunningthesetwoengineswithourunit5Wartsilaengine,thereis
insufficientinstrumentcontrolair.Theexistinginstrumentaircompressorcamewiththe
Wartsilapurchaseandistoosmalltosupporttheequipmentairloadfor3enginesonline
atonetime.Atourplant2facilitywehavetwoinstrumentaircompressors.Theyare
programmedtohaveoneon-lineandthe2ndstartupintheeventofafailurewhich
eliminatesthechanceforengineshutdownduetolackofair.Thesecompressorsare
alsoprogrammedtoswitchleadandlagonceaweektokeeptheruntimesequal.We
prposetomakethissametypeofinstallationforourunits5,6,and7atplant1.The
plant2setuphasproventobeveryreliablewiththeredundancy.Irecevedquotesfrom
3companiesandthecostsarelistedontheRequisition.Wewillhavesomesmall
additionalcostsfortheinstallationtopurchaseelectricalbreakers,wire,connection
piping,andfinalairfilter.
BOARD ACTION REQUESTED:
ApproveRequisition#008285fortwoAtlasCopcoGA26rotoryscrewair
compressors
Fiscal Impact:
$38,165.00
Included in current budget: Budget Change:
Yes
No
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
0
$40,000.00
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
ApproveRequisition8286,2020ChevroletSilveradoMD4WDCrewCabandChass
Presenter:Agenda Item Type:
John Webster
New Business
Time Requested (Minutes):
1
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
BOARD ACTION REQUESTED:
Approval of requisition 008286
Fiscal Impact:$54,082.64
Included in current budget: Budget Change:
Yes
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
$38,617.36
$92,700
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
SellingofSurplusVehicles
Presenter:Agenda Item Type:
Dave
NewBusiness
Time Requested (Minutes):
1
Attachments:
No
BACKGROUND/EXPLANATION OF AGENDA ITEM:
SellSurplusVehiclesfromthe2020FleetSchedule:
#5742008FordBuckettruck(Estimatedvalue$19000.00)
2006JohnDeere310TractorLoader/Backhoe(EstimatedValue$40000.00)
WewilladvertiseonGovDealsoncethereplacementshavearrived.
BOARD ACTION REQUESTED:
Approvesellingsurplusvehicles
Fiscal Impact:
Included in current budget: Budget Change:
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
ReliabilityComplianceServicesAgreement
Presenter:Agenda Item Type:
D.Lang
NewBusiness
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
AsaTransmissionOwnerHUCisrequiredtoperform"TransmissionPlanning"dutiesas
definedbyNERCReliabilityStandards.
CurrentlyGreatRiverEnergyisdesignatedasthe"TransmissionPlanner"(TP)forHUC,
viaaMRES/GREagreement,howeverGREhasindicatedtoMREStheyarenolonger
interestedinperformingthatroleforMRESanditsmembers.
ThisagreementwouldshiftHUC'sTPresponsibilitiesfromGREtoMRESandensure
HUCremainscompliantwiththeNERCReliabilityStandards.Functionallyverylittlewill
change,asHUChasalreadybeenworkingwiththeMREStransmissiongrouponan
annualbasistocompletethesesametasks.
BOARD ACTION REQUESTED:
Approve"ReliabilityComplianceServicesAgreement".
Fiscal Impact:
$0
Included in current budget: Budget Change:
No
No
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
RELIABILITY COMPLIANCE SERVICES AGREEMENT
This Reliability Compliance Services Agreement
into _______________, 2020, by and between Missouri Basin Municipal Power Agency d/b/a
Missouri River Energy Services, a body corporate and politic organized under the laws of the
State of Iowa and existing under the intergovernmental cooperation laws of the States of Iowa,
Minnesota, North Dakota and South DakoMRES and Hutchinson Utilities Commission
of Hutchinson, Minnesota, a municipal corporation of the State of Minnesota Municipality
MRES and Municipality are at times referred to herein Party
Parties
RECITALS
A. Municipality is a member of MRES and owns and operates a municipal electric
system, which may include BES
NERC.
B. The Federal Energy Policy Act of 2005 (the Act) establishes mandatory electric
reliability standards applicable to all owners, users and operators of the BES and authorizes the
FERCliability of the BES.
C. FERC has adopted rules to implement the Act and has certified NERC as the
independent self-regulating entity responsible for the development, oversight and enforcement of
mandatory reliability standards.
D. NERC has established reliability standards approved by FERC (all such
standards, whether now existing or hereafter established, are referred to NERC
Reliability Standardsies for these
standards to certain regional reliability entities approved by FERC, including the Midwest
Reliability Organization (MRO).
E. Municipality, as a Responsible Entity (as defined by NERC) within the MRO
footprint, is subject to NERC Reliability Standards, including standards applicable to, among
others, a Transmission Owner and a Distribution Provider (each as defined by NERC).
Municipality is registered with NERC as appropriate for the given functional role based on the
Functional Model as defined in and established by NERC.
F. MRES is registered with NERC in various roles for facilities or activities within
the MRO footprint as required and is knowledgeable and experienced in performing the
obligations to support compliance with the given registration.
G. Municipality desires to engage MRES to provide the NERC compliance services
described in this Agreement, and MRES is willing to provide such services, subject to the terms
and conditions of this Agreement.
NOW THEREFORE, the Parties agree as follows:
Reliability Compliance Services Agreement
Page 1
1. MRES SERVICES.
1.1 Facilities. The Parties agree that the services described in this Agreement relate
only to the facilities of Municipality identified in Exhibit A Facilities
apply to any other facilities of Municipality, unless otherwise agreed in writing by the Parties.
The Parties may agree to add to or subtract from the facilities subject to this Agreement by
executing an amended Exhibit A which describes any such changes. Upon execution of an
amended Exhibit A, the facilities described therein shall constitute the Facilities for all purposes
of this Agreement. Notwithstanding the foregoing, in the event any of the Facilities listed in
Exhibit A cease to be in service, such facilities shall immediately cease to be part of the Facilities
under this Agreement and MRES may unilaterally amend Exhibit A to formally remove such
facilities from Exhibit A. In the event MRES determines that Exhibit A inadvertently omits any
BES facilities of Municipality, MRES may unilaterally amend Exhibit A to include such omitted
facilities. MRES shall inform Municipality of any unilateral amendment to Exhibit A as
described in the preceding two sentences.
1.2 Services. Municipality hereby engages MRES to provide the services described
in this section below to assist Municipality in maintaining compliance of the Facilities (as
defined in Section 1.2 below) with the NERC Reliability Standards Services. The
Services may be comprised of the SME Services (as defined below) and/or the TP Services (as
defined below), as selected and agreed by the Parties. The Services to be provided under this
Agreement are those Services for which a signed Exhibit B (SME Services) and/or Exhibit C (TP
Services) is attached to this Agreement; only those Services for which a signed exhibit is
attached to this Agreement shall be covered by and provided under this Agreement.
a. SME Services. MRES shall advise and consult with Municipality
Reliability Standards (the
Subject Matter Expert StandardsSME Standards set forth in Exhibit B hereto to
the extent applicable to the Facilities, and MRES hereby accepts such engagement and
agrees to provide such services, subject to the terms and conditions of this Agreement
SME ServicesSME Services relate only to the SME
Standards specifically identified in Exhibit B and do not apply to any other NERC
Reliability Standards or other obligations, unless otherwise agreed in writing by the
Parties. The Parties may agree to add to or subtract from the NERC Reliability Standards
covered by the SME Services by executing an amended Exhibit B which describes any
such changes. Upon execution of an amended Exhibit B, the NERC Reliability Standards
specifically described therein shall be covered by this Agreement. Notwithstanding the
foregoing, in the event FERC, NERC or MRO amends the NERC Reliability Standards
identified in Exhibit B, and such amendments amend or relate directly to the SME
Services, MRES shall amend Exhibit B to reflect such changes as deemed appropriate by
MRES.
b. TP Services. MRES shall assist Municipality in complying with the
obligations and NERC Requirements of a Transmission Planner under the NERC
TP Requirements
Reliability Compliance Services Agreement
Page 2
TP Services To do so,
MRES, in its discretion, shall serve as the registered Transmission Planner for the
Facilities with respect to one or more of the TP Requirements and/or engage one or more
other properly registered Transmission Planners to serve as Transmission Planner for the
Facilities with respect to one or more of the TP Requirements, provided that, between
MRES and such other Transmission Planners, all TP Requirements applicable to the
Facilities are addressed.
2. MUNICIPALITY OBLIGATIONS.
2.1 NERC Registration. Municipality shall make and maintain in good standing
proper registration with NERC as a Transmission Owner and any other functional registrations
required now or in the future by NERC or MRO. Municipality shall comply in all respects with
the NERC Reliability Standards applicable to Municipality and the Facilities. Nothing in this
Agreement shall in any way obligate MRES to perform or be responsible for any NERC
Reliability Standards applicable to Municipality, except as expressly provided in Section 1.2(b)
above, if applicable. To further clarify, the performance by MRES of any SME Services shall
not obligate MRES to register with NERC as a Transmission Owner or to undertake any other
functional registration with respect to the Facilities.
2.2 Cooperation. Municipality shall provide to MRES all information required to be
provided by Municipality pursuant to Exhibit B and/or Exhibit C and all other information
reasonably requested by MRES to perform the Services, and Municipality shall otherwise
cooperate with MRES as required for MRES to perform the Services. All information provided
by Municipality to MRES shall be accurate in all material respects and shall be provided on or
before the date requested by MRES. Municipality acknowledges that the information required
by MRES to perform the Services may be technical and complex, and Municipality agrees to
have appropriately trained personnel or consultants available to assist in providing such
information to MRES in a timely manner based on MRES needs. If Municipality fails to have
appropriate personnel or consultants available, MRES may retain necessary consultants and
charge the costs thereof to Municipality. In the event there is a change in any information
previously provided by Municipality to MRES, Municipality shall immediately provide updated
information to MRES. Municipality acknowledges that its provision of timely and accurate
information and general cooperation with MRES are essential to the ability of MRES to
effectively perform the Services.
2.3 Maintenance of Facilities. Municipality shall own, operate, maintain and care for
the Facilities, or cause the Facilities to be operated, maintained and cared for, in accordance with
all applicable laws and regulations and Prudent Utility Practice (as defined below). Nothing
contained in this Agreement shall transfer to MRES any interest in, or make MRES responsible
for, the Facilities, except as expressly provided in Section 1.2(b) above, if applicable. As used in
this Agreement, Prudent Utility Practicemeans any of the practices, methods and acts at a
particular time which, in the exercise of reasonable judgment in the light of the facts, including
but not limited to the practices, methods and acts engaged in or approved by a significant portion
of the electrical utility industry known at the time the decision was made, would have been
expected to accomplish the desired result consistent with reliability, safety and expedition.
Reliability Compliance Services Agreement
Page 3
2.4 Changes to System. Municipality shall notify MRES as soon as practicable of any
planned or proposed modifications to
Facilities or the Services, including without limitation any: (a) generation interconnection request,
(b) request from a third party to interconnect with the Facilities if such interconnection may
impact the BES, (c) replacement of BES equipment (i.e., conductors, transformers or generators)
or equipment that may impact the BES, (d) new load serving substations, lines or transmission
sources, (e) unusual load growth of Municipality, or (f) other changes impacting ratings,
impedances or other characteristics that may impact the BES. In the event any such change alters
the Services, the Parties shall work together to revise the Agreement and Exhibits if and as
required to reflect such change and resulting alteration of the Services. MRES and Municipality
shall work together to arrange for any studies or revisions to applicable procedures required due
to a change described in this section, with the costs thereof to be paid by Municipality.
Municipality shall be responsible for all physical and operational actions to be taken with respect
to the Facilities to ensure compliance with NERC Reliability Standards as a result of any change
described in this section.
2.5 Third Party Requests. Municipality shall notify MRES as soon as practicable of
any third party requests for information received by Municipality which relate to the Services
provided by MRES.
3. RESPONSIVE ACTION.
3.1 Notice. Each Party shall notify the other Party as soon as practicable of: (a) any
notice from NERC or MRO claiming any noncompliance related to the Services; (b) any
condition of or relating to the Facilities which constitutes a noncompliance with the Services;
and (c) any condition of or relating to the Facilities which, if not addressed, is reasonably likely
to result in a noncompliance with the Services.
3.2 Responsive Action. In the event a notice is provided pursuant to Section 3.1
above, the Parties shall cooperate to address and remedy the noncompliance or potential
noncompliance pursuant to this section, as set forth below. In the event NERC or MRO notifies
a Party of a claimed noncompliance with any NERC Reliability Standards other than the TP
Requirements, Municipality shall immediately address and remedy the issue at its costs as
required by Sections 2.1 and 2.3 above.
a. Identification of Responsive Action. The Parties shall cooperate to
determine the responsive action(s) appropriate to address and remedy the noncompliance
or potential noncompliance. Each Party shall provide to the other Party all information
relevant thereto, to help fully assess potential responsive options.
b. Facilities Responsive Action. In the event the noncompliance or potential
noncompliance requires any repairs, enhancements or other physical action to be taken to
equipment or other aspects of the Facilities, Municipality shall implement such responsive
action as soon as practicable at its cost. MRES shall consult with Municipality to help
ensure the responsive action addresses the noncompliance or potential noncompliance.
Reliability Compliance Services Agreement
Page 4
c. Other Responsive Action. For all responsive action other than as described
in subsection (b) above, the Parties shall work together to take all actions required to
address and remedy the noncompliance or potential noncompliance, including without
limitation the adoption and implementation of mitigation plans, the institution of
operational changes, and other appropriate actions. MRES and Municipality shall work
together to arrange for all studies and consultant assistance necessary to analyze and
implement such responsive action. MRES shall be responsible for the costs of such
studies and consultants if and to the extent the noncompliance or potential noncompliance
was caused by the failure of MRES to properly perform any TP Services undertaken by
MRES under this Agreement. Municipality shall otherwise be responsible for all costs of
studies, consultants and other actions associated with the responsive action.
3.3 Penalties. If the Services include TP Services, MRES shall be responsible for and
pay any sanctions or penalties imposed for noncompliance of the Facilities with the TP
Requirements
properly perform the TP Services; provided however MRES shall not be responsible for or pay
any sanctions, penalties or required mitigation which involve repairs, enhancements or other
physical action to be taken to equipment or other aspects of the Facilities, all of which shall be
the responsibility of Municipality. Municipality shall be responsible for and pay any sanctions
or penalties imposed for noncompliance of the Facilities with any NERC Reliability Standards
for any other reason, including without limitation Municipalityprovide accurate or
timely information, to take appropriate responsive action, to comply with any NERC Reliability
Standards for which Municipality is responsible, or to otherwise comply with its obligations
under this Agreement, and Municipality shall indemnify, defend and hold harmless MRES from
and against any such sanctions or penalties in accordance with Section 8.2 below.
3.4 Audit. In the event a Party is audited or investigated with respect to compliance
of the Facilities with the NERC Reliability Standards, the Parties shall cooperate in responding
to such audit or investigation, including the timely delivery by each Party of information
regarding communication, coordination, feedback and other activities related to the Facilities.
4. FEES AND COST.
4.1 Fees. MRES will not charge Municipality a fee for the Services for so long as all
Facilities are under the functional control of the appropriate RTO and included in the zonal
transmission rates. In the event any of the Facilities cease to be under the functional control of
the appropriate RTO or included in the zonal transmission rates, MRES may charge a fee for the
Services if and as determined by the MRES Board of Directors. In the event such a fee is
implemented, MRES shall notify Municipality of the fee in writing and such fee will not take
effect until three months after the date of such notice or such later date as determined by the
MRES Board of Directors.
4.2 Costs. Municipality shall be responsible for and pay all costs and expenses
allocated to Municipality under this Agreement. In the event MRES incurs costs to third parties
in performing its obligations under this Agreement, Municipality, at the request of MRES, shall
Reliability Compliance Services Agreement
Page 5
failure to properly perform its obligations under this Agreement as specifically described in
Section 3.2(c) or 3.3.
5. TERM.
5.1 Term. This Agreement shall become effective: (a) with respect to SME Services,
on the later of the date on which Exhibit B is executed by the Parties and the Effective Date set
forth in Exhibit B; and (b) with respect to TP Services, on the later of the date on which Exhibit
C is executed by the Parties and the Effective Date set forth in Exhibit C. The initial term of this
Agreement shall expire on December 31, 2023. This Agreement shall automatically renew for
additional periods of one year each, unless either Party gives written notice to the other Party of
its intention to terminate this Agreement not less than one year prior to the end of the original
term, or any extension thereof, unless otherwise agreed by the Parties.
5.2 Termination. This Agreement shall terminate prior to the end of the term
described in Section 5.1 upon the occurrence of any of the actions set forth below.
a. If for any reason the long-term power sale agreement (i.e., Power Sale
Agreement (S-1) or other long-term power sale agreement) between MRES and
Municipality expires or is terminated, this Agreement shall terminate upon the date of
expiration or termination of such long-term power sale agreement.
b. If Municipality ceases to maintain in good standing with NERC and the
a Transmission Owner, this Agreement shall terminate
upon the date upon which Municipality ceases to be properly registered with NERC.
c. If Municipality ceases to maintain in good standing with NERC any
functional registration required of Municipality by FERC (other than registration as a
Transmission Owner), this Agreement may be terminated at the option of MRES upon
th.
d. If for any reason the Transmission Facilities Assignment Agreement
(TFAA) between Municipality and MRES expires or is terminated, this Agreement
shall terminate upon the date of expiration or termination of the TFAA.
e. In the event Municipality fails to perform any obligation required of it
under this Agreement, this Agreement may be terminated at the option of MRES if such
default is not cured within thirty (30) days after delivery by MRES to Municipality of a
written notice specifying the default.
f. In the event MRES fails to perform any obligation required of it under this
Agreement, this Agreement may be terminated at the option of Municipality if such
default is not cured within thirty (30) days after delivery by Municipality to MRES of a
written notice specifying the default.
Reliability Compliance Services Agreement
Page 6
Notwithstanding the foregoing, any termination of this Agreement as described above shall not
become effective until the date upon which NERC or MRO recognizes the termination through
modification of its compliance registry or other means.
5.3 Effect of Termination. Termination of this Agreement will not relieve or release
either Party from any of its obligations and liabilities under this Agreement existing or arising
prior to such termination. All provisions of this Agreement which by their nature are intended to
survive termination shall survive the termination of this Agreement, including without limitation
Sections 8 and 9.
6. REPRESENTATIONS AND WARRANTIES.
6.1 Representations of MRES. MRES represents and warrants to Municipality as
follows: (a) MRES is duly organized, validly existing, and in good standing under the laws of the
State of Iowa, (b) MRES has taken all such actions as may be necessary and proper to authorize
this Agreement, the execution and delivery hereof, and the consummation of the transactions
contemplated hereby, and (c) this Agreement is a legal, valid and binding obligation of MRES
enforceable in accordance with its terms.
6.2 Representations of Municipality. Municipality represents and warrants to MRES
as follows: (a) Municipality is a municipal corporation duly organized, validly existing and in
good standing under the laws of the state in which it is located, (b) Municipality has taken all such
actions as may be necessary and proper to authorize this Agreement, the execution and delivery
hereof, and the consummation of the transactions contemplated hereby, and (c) this Agreement is
a legal, valid and binding obligation of Municipality enforceable in accordance with its terms.
7. FORCE MAJEURE.
7.1 Notice; Suspension. In the event either Party fails wholly or in part to carry out
its obligations under this Agreement, and such failure is occasioned by or is in consequence of a
Force Majeure Condition (as defined below), and if such Party gives written notice of the Force
Majeure Condition to the other Party as soon as reasonably possible, the obligations of the Party
giving such notice, insofar as affected by such Force Majeure Condition, shall be suspended
during the continuance of the Force Majeure Condition.
7.2 Force Majeure Conditions. Force Majeure Conditions are those events or
conditions not caused by, and beyond the reasonable control of, the affected Party. Force
Majeure Conditions include without limitation: acts of God; natural disasters, including floods,
earthquakes and storms; cyberattacks; war, insurrection, terrorists acts or other unlawful acts
against public order or authority; actions, restraints or orders or regulations by governmental,
court or public authority; explosions, fires, freezing or other accidents or acts of sabotage causing
breakage of machinery, transmission lines or equipment such that they prevent a Party from
performing its obligations hereunder. The Parties agree that a change in price or market
conditions does not constitute a Force Majeure Condition.
Reliability Compliance Services Agreement
Page 7
8. LIABILITY; INDEMNITY.
8.1 Limitation of Damages. In no event shall MRES or Municipality be liable to the
other Party or any third party for special, indirect, incidental, punitive or consequential damages
under, arising out of, or in connection with the performance or non-performance of this
Agreement, whether based on contract, tort, strict liability, warranty, indemnity or otherwise. In
no direct
charge to Municipality, the exclusive remedy of Municipality, and the exclusive liability of
MRES, with respect to this Agreement shall be the recovery by Municipality of any payments
required to be made by MRES to Municipality pursuant to Section 3.2(c) and Section 3.3 above.
8.2 Indemnity. Municipality shall indemnify, defend and hold harmless MRES and
its officers, directors, employees and agents from and against any and all claims, damages,
liabilities, costs and expenses, including attornted to the execution
or performance of this Agreement, except to the extent any such claims, damages or liabilities
are caused by the failure of MRES to perform its obligations under this Agreement.
9. GENERAL TERMS.
9.1 Notices. Any notice or other communication required or permitted under this
Agreement shall be in writing and addressed to the other Party at the address and in the manner
set forth below. Any change in the information set forth below shall be made in writing and
delivered according to this section.
If to MRES: If to Municipality:
General Counsel Hutchinson Utilities
3724 West Avera Drive Commission
P. O. Box 88920 General Manager
Sioux Falls, SD 57109-8920 225 Michigan St. SE
dan.harmelink@woodsfuller.com Hutchinson, MN 55350
jcarter@ci.hutchinson.mn.us
Each notice shall be deemed delivered on the earlier of: (a) its actual receipt, if delivered
personally, by courier service, or by email, or (b) on the third day after the notice is postmarked
for mailing by first class, certified or registered, United States mail, with return receipt requested
(whether or not the return receipt is subsequently received by the sender).
9.2 Privacy and Security of Information on Individuals. MRES is a political
subdivision that operates under the intergovernmental cooperation laws of the states in which it
has members and thus is generally subject to public records laws analogous to those of its
members. Such laws require that certain data collected or exchanged in carrying out the
purposes of this Agreement shall be treated as non-public and confidential information, as
defined by applicable law. A Party disclosing any such information in the performance of this
Agreement shall designate in writing the information as confidential, using the phrase
receiving such designated information may not disclose the information to any third party, except
Reliability Compliance Services Agreement
Page 8
as required by law, by a specific written agreement among the Parties and/or the subject of the
information, or as otherwise provided in this section. If a Party in receipt of confidential
information receives a request for disclosure of the confidential information and, in the opinion
of legal counsel for the receiving Party, disclosure is required by law, such Party shall
immediately inform the Party who disclosed the information prior to making any such disclosure.
Each Party shall cooperate to enable the Party who disclosed the information, or other affected
entities, if they so desire, to obtain a protective order or other reliable assurance that confidential
treatment will be maintained consistent with applicable law. The terms of this section shall
survive the termination of this Agreement for a term as provided by law or, in the absence of a
specific law, as provided by records management policies of each respective Party.
9.3 Assignment. Neither Party may assign its rights, or delegate its duties, under this
Agreement without the prior written consent of the other Party, which consent shall not be
unreasonably withheld.
9.4 Binding Effect. All of the terms, covenants and conditions of this Agreement
shall be binding upon, and inure to the benefit of and be enforceable by, the Parties and their
respective successors, heirs, executors and permitted assigns.
9.5 Third Parties. Nothing in this Agreement shall be construed as giving any person,
firm, corporation or other entity, other than the Parties and their respective successors and
permitted assigns, any right, remedy or claim under or in respect to this Agreement.
9.6 Severability. If any provision of this Agreement is determined to any extent to be
invalid, the remainder of this Agreement shall not be affected and every other provision of this
Agreement shall be valid and in force to the fullest extent allowed by law.
9.7 Waiver. No failure on the part of any Party to exercise, and no delay in
exercising, any right, power or remedy under this Agreement shall preclude any other or further
exercise thereof or the exercise of any other right, power or remedy.
9.8 Entire Agreement; Amendments. This Agreement, and all exhibits attached
hereto, constitute the entire agreement between the Parties with respect to the subject matter
hereof, and, except as expressly provided herein, any agreement made hereafter shall be
ineffective to change, modify or discharge, in whole or in part, the terms of this Agreement,
unless such agreement is in writing and signed by the Party against whom enforcement of the
change, modification or discharge is sought.
9.9 Counterparts; Facsimiles. This Agreement may be executed in two or more
counterparts, each of which shall be an original, but all of which together shall constitute one and
the same instrument. A facsimile copy of this Agreement and any signature thereon shall be
considered for all purposes as an original.
\[Signature Page Follows\]
Reliability Compliance Services Agreement
Page 9
IN WITNESS WHEREOF, the Parties hereto have caused this Reliability Compliance
Services Agreement as of the date set forth above.
MISSOURI BASIN MUNICIPAL POWER
AGENCY d/b/a MISSOURI RIVER ENERGY
SERVICES
Sign:_______________________________
Executed this ____ day of
Print:_______________________________
________________, 2020
Title:_______________________________
Reliability Compliance Services Agreement
Page 10
HUTCHINSON UTILITIES COMMISSION
OF HUTCHINSON, MINNESOTA
Sign:_______________________________
Print:_______________________________
Title:_______________________________
Executed this ____ day of
________________, 2020 Sign:_______________________________
Print:_______________________________
Title:_______________________________
Executed this ____ day of
________________, 2020
EXHIBITS:
Exhibit A Facilities
Exhibit B SME Services
Exhibit C TP Services
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Page 11
EXHIBIT A
FACILITIES
DESCRIPTION OF FACILITIES
All BES facilities for which Municipality is the sole, discrete (not joint tenant) NERC
Appendix H (Transmission System Facilities) of the MISO Transmission Owners
Agreeme
The following other facilities not yet listed in Appendix H of the TOA:
N/A
Any planned/ proposed BES Facilities expected to be owned by Municipality, expected
to be transferred to MISO functional control (Appendix H) under the TFAA with MRES,
and not yet in service, but that may become subjected to transmission planning
assessments etc. Such facilities shall be included in the Appendix H of the MISO TOA
and the TFAA at the earliest possible time as they go in service. Such planned/
proposed Facilities are not explicitly listed in this Exhibit.
EFFECTIVE DATE
This Exhibit A shall be effective as of _______________
Reliability Compliance Services Agreement
Page 12
MISSOURI BASIN MUNICIPAL POWER
AGENCY d/b/a MISSOURI RIVER ENERGY
SERVICES
Sign:_______________________________
Executed this ____ day of
Print:_______________________________
________________, 2020
Title:_______________________________
Reliability Compliance Services Agreement
Page 13
HUTCHINSON UTILITIES COMMISSION
OF HUTCHINSON, MINNESOTA
Sign:_______________________________
Print:_______________________________
Title:_______________________________
Executed this ____ day of
________________, 2020
Sign:_______________________________
Print:_______________________________
Title:_______________________________
Executed this ____ day of
________________, 2020
Reliability Compliance Services Agreement
Page 14
EXHIBIT B
SME Services
This exhibit is not applicable.
Reliability Compliance Services Agreement
Page 15
EXHIBIT C
TP Services
MRES shall assist Municipality in complying with the obligations and NERC Requirements of
TP Requirements
extent applicable to the Facilities, subject to the terms and conditions of this Agreement (the
TP Services
Planner for the Facilities with respect to one or more of the TP Requirements and/or engage
one or more other properly registered Transmission Planners to serve as Transmission Planner
for the Facilities with respect to one or more of the TP Requirements, provided that, between
MRES and such other Transmission Planners, all TP Requirements applicable to the Facilities
are addressed.
EFFECTIVE DATE
This Exhibit C shall be effective as of _______________
Reliability Compliance Services Agreement
Page 16
MISSOURI BASIN MUNICIPAL POWER
AGENCY d/b/a MISSOURI RIVER ENERGY
SERVICES
Sign:_______________________________
Executed this ____ day of
Print:_______________________________
________________, 2020
Title:_______________________________
Reliability Compliance Services Agreement
Page 17
HUTCHINSON UTILITIES COMMISSION
OF HUTCHINSON, MINNESOTA
Sign:_______________________________
Print:_______________________________
Title:_______________________________
Executed this ____ day of
________________, 2020
Sign:_______________________________
Print:_______________________________
Title:_______________________________
Executed this ____ day of
________________, 2020
Reliability Compliance Services Agreement
Page 18
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
ApproveBrowntonElectricMeterReadingAgreement
Presenter:Agenda Item Type:
JeremyCarter
NewBusiness
Time Requested (Minutes):
10
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
TheCityofBrowntonthisspringwillbeinstallingnewsensusmetersontheircustomer
accountsthatwillallowanautomatedelectricmeterreadingprocesstobedoneremotely
throughHUC'sAMIsystemversusreadingthemetersmanually.
BecausethecostofafullyintegratedAMIsystemiscostprohibitivefortheCityof
Brownton,theyhaverequestedHUCprovidethemwiththemonthlyelectricmeter
readingsthroughHUC'sAMIsysteminthesamewayHUCprovidestheNaturalGas
readingsforBrowntoncurrently.
Aspartofthisarrangement,theCityofBrowntonwillberequiredtopaytheirpro-rated
shareofanysensuscostsincurredbecauseoftheadditionoftheirmeterstoournetwork
alongwithcoveringanhourofcustomerservicestimetopullinthereads,convertthe
dataintotheformatneededbyBrownton,andsendthedatafilebacktodothebilling
function.
Ifservicelevelsarerequestedtochangeovertime,theagreementwillberenegotiatedto
accountforpropercostrecoveryofHUC'sstafftimeandmaterials.Staffrecommends
approvingthisagreementwiththeCityofBrownton.
BOARD ACTION REQUESTED:
ApprovetheBrowntonElectricMeterReadingAgreement
Fiscal Impact:
$600
Included in current budget: Budget Change:
No
No
PROJECT SECTION:
Total Project Cost:
Remaining Cost: