06-24-2020 HUCCP
HUTCHINSON UTILITIES COMMISSION
AGENDA
REGULAR MEETING
June 24, 2020
3:00 p.m.
1. CONFLICT OF INTEREST
2. APPROVE CONSENT AGENDA
a. Approve Minutes
b. Ratify Payment of Bills
3. APPROVE FINANCIAL STATEMENTS
4. OPEN FORUM
5. COMMUNICATION
a. City Administrator
b. Divisions
c. Human Resources
d. Legal
e. General Manager
6. POLICIES
a. Review Policies
i. Section 6 of Exempt Handbook
ii. Section 6 of Non-Exempt Handbook
b. Approve Changes
7. UNFINISHED BUSINESS
8. NEW BUSINESS
a. Approve Requisition #8444 Plant #2 Substation Circuit Breakers
b. Approve 3M CIP Rebate for 2019 Qtr. 2-4 & 2020 Qtr. 1
c. 2019 Review of CIP
d. Approve Awarding the Bid - 25/46.7 MVA Transformer
e. Approve Awarding the Bid Grounding Transformer
f. Adopt Preparedness Plan
9. ADJOURN
MINUTES
Regular MeetingHutchinson Utilities Commission
Wednesday, May 27, 2020
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; Attorney Marc Sebora;
Brenda Parsley with Conway, Deuth & Schmiesing Audit Firm
1. Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Morrow, second by Commissioner Cheney to approve the
Consent Agenda. Motion carried unanimously.
3. Approve 2019 Financial Audit Presentation by Brenda Parsley
Brenda Parsley with Conway, Deuth & Schmiesing audit firm presented the 2019
Hutchinson Utilities Commission independent audit report. Ms. Parsley stated that
the audit was conducted in accordance with the Generally Accepted Auditing
Standards and Government Auditing Standards. The financial statements of the
Commission are presented f. Parsley reviewed the
Statement of Net Position. Assets and liabilities both decreased in 2019. Overall
Net Position did increase in 2019, which is the trend the last several years. Ms.
Parsley reviewed the Cash and Investment Balances.
Electric Division Operating Revenues and Expenses both decreased in 2019.
Natural Gas Division Operating Revenues decreased with Operating Expenses
increasing in 2019.
Ms. Parsley summarized the Communications portion of the report and the general
recommendations, which consist of cross-training and capital asset accounting
which have been recommended in past years. The third recommendation relates to
GASB 95. Due to COVID-19, there has been a delayed implementation of certain
GASB 2 years, which includes the lease standard. This is
something to keep in mind for the future that all leases need to be added to the
financial statements.
Commissioner Hanson inquired about a prior period adjustment on the balance
sheet in 2018. Ms. Parsley noted it was for post-employment benefits.
GM Carter reviewed the Revenue per KWH slide and Revenue per MCF slide of the
presentation. These slides are showing that the glide paths the Commission put in
place a couple of years ago are indeed doing what the intent was. GM Carter also
noted conversation points regarding the glide paths will need to be discussed this
summer.
1
GM Carter noted that IT costs increased due to the SCADA system and by placing
RTUs out in the field to start transitioning HUC to an updated software system.
Additional increases were Boiler and Property insurance. Overall, operationally if
labor, IT and insurance is removed, HUC is running flat or at a decrease in some
cases.
Motion by Commissioner Hanson, second by Commissioner Wendorff to approve
the 2019 Financial Audit. Motion carried unanimously.
4. Approve Financial Statements
Mr. Martig presented the Financial Statements. Natural Gas Division April 2020 is
very similar to April 2019 but continues to remain below 2019 levels due to a warmer
st
2020 1 quarter compared to 2019. Electric Division net loss increased by $197k
mostly due to decreased revenues. Residential class usage increased with
commercial classes decreasing. More than half the decrease in revenue can be
attributed to no power cost adjustment in 2020 compared to the power cost
adjustment bringing in an additional $105k in 2019.
GM Carter reviewed the residential and commercial loads along with the A/R
balances. Discussions were held on the loads and the options customers have
regarding payment of bills. Staff will continue to monitor the loads along with the
A/R balances.
Motion by Commissioner Cheney, second by Commissioner Morrow to approve the
financial statements. Motion carried unanimously.
5. Open Forum
6. Communication
a. City Administrator Matthew Jaunich Absent
b. Divisions
i. Dan Lang, Engineering Services Manager Absent
ii. Dave Hunstad, Electric Transmission/Distribution Manager Absent
iii. Randy Blake, Production Manager Absent
iv. John Webster, Natural Gas Division Director Absent
v. Jared Martig, Financial Manager-
1. Fixed Assets module is now live. Continuing to work on the Purchasing
module.
c. Human Resources - Brenda Ewing Absent
d. Legal Marc Sebora
i. Nothing to report
e. General Manager Jeremy Carter
i. Reviewed the Power Supply Mix for 2019
2
ii. Transformer bid update. Bid opening was today. Staff and CE Power will
review all the bid specifications. After review of the bids, Staff will come to
the lead times of the transformers.
iii. Reviewed the return to work guidelines for HUC. As of June 1, HUC will be
moving from the Orange Phase down to Green Phase. All employees will
return back to work, however there will still be no congregation of employees.
Alternative Work Schedule Request Forms were provided to vulnerable
employees if needed. Lobby will continue to be closed until July 6, but may
reopen sooner if needed.
Discussions were held on any feedback that has been received by the
employees along with the impact to HUC due to the pandemic.
7. Policies
a. Review Policies
i. Section 5 of Exempt Handbook
ii. Section 5 of Non-Exempt Handbook
No changes recommended at this time.
b. Approve Changes
No changes recommended at this time.
8. Unfinished Business
a. None
9. New Business
a. None
Commissioner Hanson spoke of the Glide Paths and the internal review.
Conversations were held on when the review needs to be presented to the
Council. GM Carter will present an internal review at the July Board meeting.
10. Adjourn
There being no further business, a motion by Commissioner Hanson, second by
Commissioner Cheney to adjourn the meeting at 3:43p.m. Motion carried
unanimously.
__________________________
Robert Wendorff, Secretary
ATTEST: _________________________
Don Martinez, President
3
HUTCHINSON UTILITIES COMMISSION
COMBINED DIVISIONS
FINANCIAL REPORT FOR MAY, 2020
May, 2020 MonthYear to Date 41.7% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Combined Division
Customer Revenue$ 2,250,657$ 2,417,574 $ (166,917)(6.9%)$ 14,360,245$ 15,616,929$ (1,256,684)(8.0%)$ 35,819,11640.1%
Sales for Resale$ 152,582$ 193,049$ (40,467) (21.0%)$ 769,654$ 1,011,790$ (242,136)(23.9%)$ 3,007,25025.6%
NU Transportation$ 83,945$ 83,280$ 6650.8%$ 414,052$ 411,876 $ 2,1750.5%$ 898,64046.1%
Electric Division Transfer$ 55,440$ 54,982$ 4580.8%$ 277,201$ 274,910 $ 2,2920.8%$ 665,28341.7%
Other Revenues$ 28,910$ 39,096$ (10,186) (26.1%)$ 269,675$ 220,591 $ 49,08422.3%$ 466,20757.8%
Interest Income$ 23,275$ 31,910$ (8,636)(27.1%)$ 220,061$ 198,077 $ 21,98411.1%$ 383,45657.4%
TOTAL REVENUES$ 2,594,809$ 2,819,891 $ (225,081)(8.0%)$ 16,310,888$ 17,734,172$ (1,423,285)(8.0%)$ 41,239,95239.6%
Salaries & Benefits$ 533,401$ 482,953$ 50,44810.45%$ 2,705,327$ 2,575,639$ 129,6895.0%$ 6,946,88038.9%
Purchased Commodities$ 1,269,189$ 1,320,658 $ (51,469) (3.9%)$ 8,040,424$ 8,962,710$ (922,286)(10.3%)$ 19,252,47741.8%
Transmission$ 219,967$ 208,754$ 11,2135.4%$ 820,974$ 1,027,324$ (206,351)(20.1%)$ 2,680,00030.6%
Generator Fuel/Chem.$ 6,945 $ 14,854$ (7,910)(53.2%)$ 64,006$ 100,990 $ (36,985)(36.6%)$ 825,8757.8%
Depreciation$ 327,083$ 327,083$ -0.0%$ 1,635,417$ 1,635,417$ - 0.0%$ 3,925,00041.7%
Transfers (Elect./City)$ 211,040$ 188,434$ 22,60612.0%$ 1,055,201$ 942,169 $ 113,03112.0%$ 2,532,47541.7%
Operating Expense$ 141,542$ 181,754$ (40,212) (22.1%)$ 929,934$ 919,784 $ 10,1501.1%$ 2,605,31335.7%
Debt Interest$ 89,542$ 97,334$ (7,792)(8.0%)$ 447,711$ 486,669 $ (38,958)(8.0%)$ 1,074,50741.7%
TOTAL EXPENSES$ 2,798,708$ 2,821,824 $ (23,116) (0.8%)$ 15,698,994$ 16,650,703$ (951,709)(5.7%)$ 39,842,52739.4%
NET PROFIT/(LOSS)$ (203,899)$ (1,933)$ (201,966)10,447.5%$ 611,894$ 1,083,469$ (471,575)(43.5%)$ 1,397,42543.8%
Combined Divisions - Financial/Operating Ratios
MayMayYTD YTD 2020HUC
20202019Change20202019ChangeBudgetTarget
Gross Margin %29.2%32.9%-3.8%33.8%33.7%0.1%34.6%26% - 28%
Operating Income Per Revenue $ (%)-6.5%1.6%-8.1%3.9%7.2%-3.4%4.6%1%-4%
Net Income Per Revenue $ (%):-7.9%-0.1%-7.8%3.8%6.1%-2.4%3.4%0%-1%
Notes/Graphs:
HUTCHINSON UTILITIES COMMISSION
ELECTRIC DIVISION
FINANCIAL REPORT FOR MAY, 2020
May, 2020 MonthYear to Date 41.7% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Electric Division
Customer Revenue$ 1,727,362$ 1,876,485$ (149,123)(7.9%)$ 9,240,588$ 9,775,255$ (534,668) (5.5%)$ 25,627,44836.1%
Sales for Resale$ 152,582$ 193,049 $ (40,467)(21.0%)$ 769,654$ 1,011,790$ (242,136) (23.9%)$ 3,007,25025.6%
Other Revenues$ 2,528 $ 15,477$ (12,949)(83.7%)$ 169,257$ 89,527$ 79,73089.1%$ 179,49994.3%
Interest Income$ 13,031$ 17,349$ (4,318) (24.9%)$ 117,001$ 106,391$ 10,60910.0%$ 208,45656.1%
TOTAL REVENUES$ 1,895,503$ 2,102,360$ (206,857)(9.8%)$ 10,296,499$ 10,982,963$ (686,464) (6.3%)$ 29,022,65335.5%
Salaries & Benefits$ 397,607$ 355,793 $ 41,81411.8%$ 2,018,542$ 1,906,168$ 112,3745.9%$ 5,074,75939.8%
Purchased Power$ 994,083$ 1,031,698$ (37,615)(3.6%)$ 5,133,132$ 5,587,252$ (454,120) (8.1%)$ 13,480,33238.1%
Transmission$ 219,967$ 208,754 $ 11,2135.4%$ 820,974$ 1,027,324$ (206,351) (20.1%)$ 2,680,00030.6%
Generator Fuel/Chem.$ 6,945 $ 14,854$ (7,910) (53.2%)$ 64,006 $ 100,990$ (36,985) (36.6%)$ 825,8757.8%
Depreciation$ 241,667$ 241,667 $ -0.0%$ 1,208,333$ 1,208,333$ -0.0%$ 2,900,00041.7%
Transfers (Elect./City)$ 163,236$ 147,172 $ 16,06410.9%$ 816,178$ 735,859$ 80,31810.9%$ 1,958,82641.7%
Operating Expense$ 88,987$ 127,870 $ (38,884)(30.4%)$ 576,167$ 618,023$ (41,856) (6.8%)$ 1,654,94334.8%
Debt Interest$ 44,471$ 46,555$ (2,083) (4.5%)$ 222,357$ 232,773$ (10,417) (4.5%)$ 533,65741.7%
TOTAL EXPENSES$ 2,156,962$ 2,174,364$ (17,402)(0.8%)$ 10,859,688$ 11,416,724$ (557,036) (4.9%)$ 29,108,39237.3%
NET PROFIT/(LOSS)$ (261,459)$ (72,004) $ (189,455)263.1%$ (563,189)$ (433,761)$ (129,428) 29.8%$ (85,739)656.9%
May, 2020 MonthYear to Date 41.7% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Electric Division
Residential3,746,7703,532,455 214,315 6.07%19,493,31619,413,450 79,866 0.41% 51,590,88937.8%
All Electric136,577129,558 7,0195.42%1,230,9971,312,976 (81,979) (6.24%) 2,545,49748.4%
Small General1,183,5721,432,597 (249,025)(17.38%)7,043,6587,731,260 (687,602) (8.89%) 18,956,24837.2%
Large General5,991,3606,665,090 (673,730)(10.11%)30,265,98032,349,050 (2,083,070) (6.44%) 79,933,58337.9%
Industrial8,789,0009,165,000 (376,000)(4.10%)47,012,00046,408,000 604,000 1.30% 129,279,66636.4%
Total KWH Sold 19,847,279 20,924,700 (1,077,421)(5.15%) 105,045,951 107,214,736 (2,168,785)(2.02%) 282,305,88337.2%
Financial/Operating Ratios
MayMayYTD YTD 2020HUC
20202019Change20202019ChangeBudgetTarget
Gross Margin %19.9%25.4%-5.5%25.4%25.4%-0.1%28.7%24% - 28%
Operating Income Per Revenue $ (%)-12.3%-2.1%-10.3%-5.9%-2.9%-3.0%0.8%0%-5%
Net Income Per Revenue $ (%):-13.8%-3.4%-10.4%-5.5%-3.9%-1.5%-0.3%0%-5%
Customer Revenue per KWH:$0.0870$0.0897-$0.0026$0.0876$0.0908-$0.0032$0.0903$0.0903
Total Power Supply Exp. per KWH:$0.0759$0.0744$0.0016$0.0714$0.0756-$0.0042$0.0728$0.0728
Notes/Graphs:
Net Loss increased by $189,455 mostly due to decreased revenues. Usage was up in the residential class but down in the commercial classes.
About 35% of the decrease in revenue can be attributed to no power cost adjustment in 2020 compared to the PCA bringing in an additional $74,313 in 2019.
Sales for Resale of $152,582 consisted of $3,082 in market sales, $136,000 in capacity sales to SMMPA and $13,500 in capacity sales to AEP. May 2019 Sales for
Resale of $193,049 consisted of $9,208 in market sales, $36,400 in monthly tolling fees from Transalta, $31,441 in Transalta energy sales, and $116,000 in capacity
sales to SMMPA. May 2018 Sales for Resale of $337,981 consisted of $21,132 in market sales, $35,600 in Transalta tolling fees, $185,249 in Transalta energy sales,
and $96,000 SMMPA capacity sales.
Overall Purchased Power decreased by $37,615. MRES purchases decreased by $37 and market purchases/MISO costs decreased by $37,578.
There was no power cost adjustment for May leaving the total at $249,141 YTD.
Last year's power cost adjustment for May 2019 generated $74,313 in additional revenue for the month and $634,987 YTD.
HUTCHINSON UTILITIES COMMISSION
GAS DIVISION
FINANCIAL REPORT FOR MAY, 2020
May, 2020 MonthYear to Date 41.7% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Gas Division
Customer Revenue$ 523,295$ 541,089$ (17,794) (3.3%)$ 5,119,657 $ 5,841,674$ (722,016)(12.4%)$ 10,191,66850.2%
Transportation$ 83,945$ 83,280 $ 6650.8%$ 414,052$ 411,876 $ 2,1750.5%$ 898,640 46.1%
Electric Div. Transfer$ 55,440$ 54,982 $ 4580.8%$ 277,201$ 274,910 $ 2,2920.8%$ 665,283 41.7%
Other Revenues$ 26,382$ 23,619 $ 2,76311.7%$ 100,418$ 131,064 $ (30,646)(23.4%)$ 286,708 35.0%
Interest Income$ 10,243$ 14,561 $ (4,318)(29.7%)$ 103,060$ 91,686$ 11,374 12.4%$ 175,000 58.9%
TOTAL REVENUES$ 699,306$ 717,530$ (18,225) (2.5%)$ 6,014,389 $ 6,751,210$ (736,821)(10.9%)$ 12,217,29949.2%
Salaries & Benefits$ 135,794$ 127,159$ 8,6346.8%$ 686,785$ 669,470 $ 17,315 2.6%$ 1,872,12136.7%
Purchased Gas$ 275,106$ 288,959$ (13,853) (4.8%)$ 2,907,293 $ 3,375,458$ (468,165)(13.9%)$ 5,772,14550.4%
Operating Expense$ 52,555$ 53,884 $ (1,328)(2.5%)$ 353,767$ 301,761 $ 52,006 17.2%$ 950,370 37.2%
Depreciation$ 85,417$ 85,417 $ -0.0%$ 427,083$ 427,083 $ -0.0%$ 1,025,00041.7%
Transfers (City)$ 47,804$ 41,262 $ 6,54215.9%$ 239,023$ 206,310 $ 32,713 15.9%$ 573,649 41.7%
Debt Interest$ 45,071$ 50,779 $ (5,708)0.0%$ 225,354$ 253,896 $ (28,542)(11.2%)$ 540,850 41.7%
TOTAL EXPENSES$ 641,746$ 647,460$ (5,714)(0.9%)$ 4,839,306 $ 5,233,979$ (394,673)(7.5%)$ 10,734,13545.1%
NET PROFIT/(LOSS)$ 57,559$ 70,070 $ (12,511) (17.9%)$ 1,175,083 $ 1,517,230$ (342,147)(22.6%)$ 1,483,16479.2%
May, 2020 MonthYear to Date 41.7% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Gas Division
Residential14,912,84719,147,861 (4,235,014)(22.12%)238,804,774277,908,569 (39,103,795)(14.07%) 422,479,00056.5%
Commercial11,620,36715,431,474 (3,811,107)(24.70%)174,511,929200,448,263 (25,936,334)(12.94%) 331,731,00052.6%
Industrial60,394,70955,506,291 4,888,4188.81%425,269,556420,614,995 4,654,5611.11% 803,079,00053.0%
Total CF Sold 86,927,923 90,085,626 (3,157,703)(3.51%) 838,586,259 898,971,827 (60,385,568)(6.72%) 1,557,289,00053.8%
Financial/Operating Ratios
MayMayYTD YTD 2020HUC
20202019Change20202019ChangeBudgetTarget
Gross Margin %55.5%55.9%-0.4%48.3%47.4%0.9%49.0%37%-42%
Operating Income Per Revenue $ (%)10.0%12.8%-2.9%20.8%24.1%-3.3%13.8%11%-16%
Net Income Per Revenue $ (%):8.7%10.3%-1.6%20.2%23.2%-3.0%12.6%6%-11%
Contracted Customer Rev. per CF:$0.0036$0.0037-$0.0002$0.0037$0.0042-$0.0005$0.0040$0.0040
Customer Revenue per CF:$0.0103$0.0091$0.0012$0.0084$0.0084$0.0000$0.0089$0.0089
Total Power Supply Exp. per CF:$0.0034$0.0034$0.0000$0.0036$0.0038($0.0002)$0.0039$0.0039
Notes/Graphs:
May 2020 financial numbers are very similar to May 2019 but HUC remains below 2019 consumption levels due mostly to the much warmer first quarter of 2020
compared to 2019.
May's fuel cost credit adjustment was $0.87483/MCF totalling $27,701 for the month and $443,304 YTD.
May 2019 credits totalled $55,584 for the month and $533,596 YTD.
HUTCHINSONUTILITIESCOMMISSION
BALANCESHEET-CONSOLIDATED
MAY 31, 2020
ElectricGasTotalTotal Net Change
DivisionDivision20202019Total(YTD)
Current Assets
Cash 5,631,700.24 10,388,421.11 16,020,121.35 16,279,186.47 (259,065.12)
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 404,790.43 - 404,790.43 372,736.68 32,053.75
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 1,189,328.13 - 1,189,328.13 1,091,828.09 97,500.04
Bond Interest Payment 2012 - 997,925.00 997,925.00 985,354.17 12,570.83
Debt Service Reserve Funds 522,335.64 2,188,694.02 2,711,029.66 2,711,029.66 -
Total Current Assets 12,192,377.44 1 5,600,165.74 27,792,543.18 2 7,643,715.68 148,827.50
Receivables
Accounts (net of uncollectible allowances) 1,757,162.33 674,999.01 2,432,161.34 2,732,648.31 (300,486.97)
Interest 57,982.32 57,982.32 115,964.64 47,264.58 68,700.06
Total Receivables 1,815,144.65 7 32,981.33 2,548,125.98 2 ,779,912.89 (231,786.91)
Other Assets
1,485,045.08 458,581.42 1,693,786.73
Inventory 1,943,626.50 249,839.77
102,830.24 (18,567.58) 136,697.06
Prepaid Expenses 84,262.66 (52,434.40)
101,508.04 -
Sales Tax Receivable 101,508.04 42,930.13 58,577.91
Deferred Outflows - Electric 219,249.00 -
219,249.00 494,053.00 (274,804.00)
Deferred Outflows - Gas - 73,083.00
73,083.00 164,685.00 (91,602.00)
1,908,632.36 5 13,096.84 2,421,729.20 2 ,532,151.92 (110,422.72)
Total Other Assets
Total Current Assets 15,916,154.45 1 6,846,243.91 32,762,398.36 3 2,955,780.49 (193,382.13)
Capital Assets
Land & Land Rights 690,368.40 3,899,918.60 4,590,287.00 4,590,287.00 -
Depreciable Capital Assets 91,541,928.85 42,001,576.49 133,543,505.34 131,888,924.33 1,654,581.01
Accumulated Depreciation (59,108,715.61) (17,591,970.20) (76,700,685.81) (72,893,207.10) (3,807,478.71)
Construction - Work in Progress 16,287,599.22 292,532.48 16,580,131.70 15,154,663.40 1,425,468.30
Total Net Capital Assets 49,411,180.86 2 8,602,057.37 78,013,238.23 7 8,740,667.63 (727,429.40)
Total Assets 6 5,327,335.31 4 5,448,301.28 1 10,775,636.59 1 11,696,448.12 ( 920,811.53)
HUTCHINSONUTILITIESCOMMISSION
BALANCESHEET-CONSOLIDATED
MAY 31, 2020
ElectricGasTotalTotal Net Change
DivisionDivision20202019Total(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 1,937,732.69 581,250.65 2,518,983.34 2,781,232.30 (262,248.96)
Accrued Expenses
Accrued Interest - - - - -
Accrued Payroll 66,062.70 22,356.86 88,419.56 55,248.77 33,170.79
Total Current Liabilities 2,648,795.39 2 ,244,215.83 4,893,011.22 5 ,017,089.39 (124,078.17)
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 585,496.80 1,020,845.39 1,606,342.19 1,825,407.47 (219,065.28)
Pension Liability - Electric 2,686,985.00 - 2,686,985.00 2,700,290.00 (13,305.00)
Pension Liability - Electric OPEB 76,502.00 - 76,502.00 72,192.00 4,310.00
Pension Liability - Nat Gas - 895,662.00 895,662.00 900,097.00 (4,435.00)
Pension Liability - Nat Gas OPEB - 25,501.00 25,501.00 24,064.00 1,437.00
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 550,772.00 - 550,772.00 804,800.00 (254,028.00)
Deferred Outflows - Nat Gas - 183,591.00 183,591.00 268,267.00 (84,676.00)
Total Long-Term Liabilities 19,766,250.20 1 3,380,541.46 33,146,791.66 3 5,759,199.33 (2,612,407.67)
Net Position
Retained Earnings 42,912,289.72 29,823,543.99 72,735,833.71 70,920,159.40 1,815,674.31
Total Net Position 42,912,289.72 2 9,823,543.99 72,735,833.71 7 0,920,159.40 1,815,674.31
Total Liabilities and Net Position 65,327,335.31 4 5,448,301.28 110,775,636.59 1 11,696,448.12 (920,811.53)
Hutchinson Utilities Commission
Cash-Designations Report, Combined
5/31/2020
Change in
Financial Annual Balance, Balance, Cash/Reserve
InstitutionCurrent Interest RateInterestMay 2020 April 2020 Position
Savings, Checking, Investmentsvariesvariesvaries 27,792,543.18 27,618,285.83 174,257.35
Total Operating Funds 27,792,543.18 27,618,285.83 174,257.35
Combined Divisions - Total Funds 27,792,543.18 27,618,285.83 174,257.35
Restricted Funds:
Debt Reserve RequirementsBond Covenants - sinking fund 2,187,253.13 1,922,710.93 264,542.20
Debt Reserve RequirementsBond Covenants -1 year Max. P & I 2,711,029.66 2,711,029.66 -
Total Restricted Funds 4,898,282.79 4,633,740.59 264,542.20
Excess Reserves Less Restrictions, Combined 22,894,260.39 22,984,545.24 (90,284.85)
Designated Funds:
Operating ReserveMin 60 days of 2020 Operating Bud. 5,981,005.00 5,981,005.00 -
Rate Stabalization Funds 1,056,097.04 1,105,731.50 (49,634.46)
PILOT FundsCharter (Formula Only) 1,867,192.00 1,867,192.00 -
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 12,854,294.04 12,903,928.50 (49,634.46)
Excess Reserves Less Restrictions & Designations, Combined 10,039,966.35 10,080,616.74 (40,650.39)
Financial/Operating Ratios
YEYEYEYEYTDHUC
20162017201820192020Target
Debt to Asset32.2%40.2%37.7%34.9%34.3%<50%
Current Ratio3.063.363.935.115.63>2.0
RONA2.17%1.82%3.16%2.25%0.61%>0%
Notes/Graphs:
Change in Cash Balance (From 12/31/14 to 5/31/2020)
Month End ElectricElec. ChangeNatural GasGas Change TotalTotal Change
5/31/2020 12,192,377 15,600,166 27,792,543
12/31/2019 12,124,142 68,236 13,837,040 1,763,126 25,961,181 1,831,362
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
5/31/2020
Change in
Financial Annual Balance, Balance, Cash/Reserve
InstitutionInterestMay 2020 April 2020 Position
Current Interest Rate
Operating Funds:
Savings, Checking, Investmentsvariesvariesvaries 27,792,543.18 27,618,285.83 174,257.35
Total HUC Operating Funds 27,792,543.18 27,618,285.83 174,257.35
Electric Division - Total Funds 12,192,377.44 12,127,910.82 64,466.62
Restricted Funds:
Debt Restricted RequirementsBond Covenants - sinking fund 1,189,328.13 1,091,106.77 98,221.36
Debt Restricted RequirementsBond Covenants -1 year Max. P & I 522,335.64 522,335.64 -
Total Restricted Funds 1,711,663.77 1,613,442.41 98,221.36
Excess Reserves Less Restrictions, Electric 10,480,713.67 10,514,468.41 (33,754.74)
Designated Funds:
Operating ReserveMin 60 days of 2020 Operating Bud. 4,367,899.00 4,367,899.00 -
Rate Stabalization Funds$400K-$1.2K 404,790.43 454,424.89 (49,634.46)
PILOT FundsCharter (Formula Only) 1,293,543.00 1,293,543.00 -
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 9,216,232.43 9,265,866.89 (49,634.46)
Excess Reserves Less Restrictions & Designations, Electric 1,264,481.24 1,248,601.52 15,879.72
Financial/Operating Ratios
YEYEYEYEYTDAPPA RatioHUC
201620172018201920205K-10K Cust.Target
Debt to Asset Ratio (* w/Gen.)16.7%35.4%35.7%34.1%34.3%50.1%<50%
Current Ratio3.574.363.635.265.282.43>2.0
RONA-0.4%-0.6%-0.3%-0.4%-0.9%NA>0%
Notes/Graphs:
Hutchinson Utilities Commission
Cash-Designations Report, Gas
5/31/2020
Change in
Financial Annual Balance, Balance, Cash/Reserve
InstitutionCurrent Interest RateInterestMay 2020 April 2020 Position
Operating Funds:
Savings, Checking, Investmentsvariesvariesvaries27,792,543.1827,618,285.83174,257.35
Total HUC Operating Funds 27,792,543.18 27,618,285.83 174,257.35
Gas Division - Total Funds 15,600,165.74 15,490,375.01 109,790.73
Restricted Funds:
Debt Restricted RequirementsBond Covenants - sinking fund 997,925.00 831,604.16 166,320.84
Debt Restricted RequirementsBond Covenants -1 year Max. P & I 2,188,694.02 2,188,694.02 -
Total Restricted Funds 3,186,619.02 3,020,298.18 166,320.84
Excess Reserves Less Restrictions, Gas 12,413,546.72 12,470,076.83 (56,530.11)
Designated Funds:
Operating ReserveMin 60 days of 2020 Operating Bud. 1,613,106.00 1,613,106.00 -
Rate Stabalization Funds$200K-$600K 651,306.61 651,306.61 -
PILOT FundsCharter (Formula Only) 573,649.00 573,649.00 -
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 3,638,061.61 -
Excess Reserves Less Restrictions & Designations, Gas 8,775,485.11 8,832,015.22 (56,530.11)
Financial/Operating Ratios
YEYEYEYEYTDHUC
20162017201820192020APGA RatioTarget
Debt to Asset51.2%47.6%40.7%36.1%34.4%TBD<50%
Current Ratio2.592.744.334.966.05TBD>2.0
RONA5.6%5.0%8.3%6.4%2.9%TBD>0%
Notes/Graphs:
HUTCHINSON UTILITIES COMMISSION
Investment Report
For the Month Ended May 31, 2020
InterestCurrentDate ofDate ofParCurrentPurchaseUnrealizedPremiumNext
InstitutionDescriptionRateYTMPurchaseMaturityValueValueAmountGain/(Loss)(Discount)Call Date
Wells FargoMoney Market0.010%0.010%NANA - 76,993.69 - - - N/A
Wells FargoCD's1.700%1.700%02/21/202002/22/2022 245,000.00 251,272.00 245,000.00 6,272.00 - N/A
Wells FargoCD's1.300%1.300%03/31/202009/30/2021 245,000.00 248,626.00 245,000.00 3,626.00 - N/A
Wells FargoCD's1.900%1.900%08/21/201908/23/2021 174,000.00 177,678.36 174,000.00 3,678.36 - N/A
Wells FargoCD's2.500%2.500%04/02/201904/05/2021 245,000.00 249,914.70 245,000.00 4,914.70 - N/A
Wells FargoCD's1.250%1.250%04/08/202004/08/2021 245,000.00 247,322.60 245,000.00 2,322.60 - N/A
Wells FargoCD's2.000%2.000%10/07/201912/31/2020 245,000.00 245,480.20 245,000.00 480.20 - 07/07/2020
Wells FargoCD's2.000%2.000%01/30/202001/30/2024 245,000.00 245,786.45 245,000.00 786.45 - 07/30/2020
Wells FargoCD's2.000%2.000%08/29/202008/22/2022 200,000.00 205,324.00 200,000.00 5,324.00 - 09/29/2020
Wells FargoCD's1.700%1.700%12/30/201907/08/2020 60,000.00 60,105.60 60,000.00 105.60 - N/A
Wells FargoCD's2.000%2.000%01/10/202001/24/2025 245,000.00 245,526.75 245,000.00 526.75 - 07/10/2020
Wells FargoCD's2.100%2.100%01/30/202007/30/2024 245,000.00 245,837.90 245,000.00 837.90 - 07/30/2020
Wells FargoCD's2.000%2.000%01/29/202001/29/2024 245,000.00 245,747.25 245,000.00 747.25 - 07/29/2020
Wells FargoCD's1.700%1.700%01/31/202005/03/2021 245,000.00 248,488.80 245,000.00 3,488.80 - N/A
Wells FargoCD's1.750%1.750%01/29/202007/29/2021 245,000.00 249,473.70 245,000.00 4,473.70 - N/A
Broker Total25.6% 3,129,000.00 3,243,578.00 3,129,000.00 37,584.31 -
Cetera Investment ServicesMoney Market0.100%0.100%N/AN/A - 3,518.15 - - - N/A
Cetera Investment ServicesMunicipal Bonds2.995%2.073%03/07/201607/01/2020 250,000.00 250,472.50 260,835.21 (10,362.71) 10,835.21N/A
Cetera Investment ServicesMunicipal Bonds2.750%1.881%03/07/201608/01/2020 180,000.00 180,522.00 187,070.40 (6,548.40) 7,070.40 N/A
Cetera Investment ServicesMunicipal Bonds2.300%1.715%12/11/201710/01/2020 100,000.00 100,485.00 101,595.00 (1,110.00) 1,595.00 N/A
Cetera Investment ServicesMunicipal Bonds2.875%2.121%04/29/201609/01/2021 250,000.00 253,610.00 259,467.50 (5,857.50) 9,467.50 N/A
Cetera Investment ServicesMunicipal Bonds3.751%2.399%04/29/201611/01/2021 250,000.00 256,525.00 267,330.00 (10,805.00) 17,330.00N/A
Cetera Investment ServicesMunicipal Bonds3.139%2.190%12/11/201709/01/2021 300,000.00 306,204.00 310,116.00 (3,912.00) 10,116.00N/A
Cetera Investment ServicesMunicipal Bonds3.436%3.436%12/20/201812/15/2021 50,000.00 48,653.00 45,155.00 3,498.00 (4,845.00)N/A
Cetera Investment ServicesMunicipal Bonds2.655%2.208%12/11/201703/01/2022 300,000.00 307,641.00 305,314.92 2,326.08 5,314.92 N/A
Cetera Investment ServicesMunicipal Bonds3.000%3.118%12/20/201808/01/2022 50,000.00 51,823.50 50,377.67 1,445.83 377.67
N/A
Cetera Investment ServicesMunicipal Bonds3.633%3.116%12/20/201809/01/2022 250,000.00 262,207.50 257,217.48 4,990.02 7,217.48 N/A
Cetera Investment ServicesMunicipal Bonds3.240%3.240%11/17/201702/15/2023 80,000.00 76,284.00 69,633.48 6,650.52 (10,366.52)N/A
Cetera Investment ServicesMunicipal Bonds3.650%3.004%12/20/201802/01/2023 250,000.00 261,337.50 256,165.00 5,172.50 6,165.00 N/A
Cetera Investment ServicesMunicipal Bonds3.075%3.236%12/20/201806/01/2023 50,000.00 52,129.00 49,746.15 2,382.85 (253.85)N/A
Cetera Investment ServicesMunicipal Bonds2.500%3.181%12/20/201808/01/2023 35,000.00 36,183.70 34,320.05 1,863.65 (679.95)N/A
Cetera Investment ServicesMunicipal Bonds3.400%3.148%12/20/201811/01/2023 125,000.00 130,593.75 126,376.25 4,217.50 1,376.25 N/A
Cetera Investment ServicesMunicipal Bonds3.400%3.148%12/20/201811/01/2023 65,000.00 67,843.10 65,715.65 2,127.45 715.65
N/A
Cetera Investment ServicesMunicipal Bonds1.862%1.862%01/22/202011/01/2023 150,000.00 140,974.50 139,866.00 1,108.50 (10,134.00)N/A
Cetera Investment ServicesMunicipal Bonds5.290%2.724%04/18/201906/01/2023 260,000.00 286,730.60 291,059.96 (4,329.36) 31,059.96N/A
Cetera Investment ServicesMunicipal Bonds2.854%3.173%12/20/201802/01/2024 100,000.00 104,266.00 99,605.96 4,660.04 (394.04)N/A
Cetera Investment ServicesMunicipal Bonds2.977%3.246%12/20/201803/15/2024 250,000.00 257,335.00 248,743.99 8,591.01 (1,256.01)N/A
Cetera Investment ServicesMunicipal Bonds1.940%1.821%01/13/202005/01/2024 65,000.00 66,078.35 65,570.70 507.65 570.70
N/A
Cetera Investment ServicesMunicipal Bonds2.528%1.918%01/13/202012/01/2024 100,000.00 102,018.00 102,999.53 (981.53) 2,999.53 N/A
Cetera Investment ServicesMunicipal Bonds3.922%3.429%12/20/201812/01/2024 204,000.00 220,819.80 208,181.10 12,638.70 4,181.10 N/A
Cetera Investment ServicesMunicipal Bonds5.742%3.658%04/11/201908/01/2024 430,000.00 472,819.40 464,344.41 8,474.99 34,344.41N/A
Cetera Investment ServicesMunicipal Bonds4.400%3.221%04/11/201907/01/2025 500,000.00 531,800.00 539,101.11 (7,301.11) 39,101.1107/01/2023
Cetera Investment ServicesMunicipal Bonds5.640%3.007%04/18/201908/15/2025 205,000.00 179,678.40 169,737.95 9,940.45 (35,262.05)N/A
Cetera Investment ServicesMunicipal Bonds3.743%2.740%04/18/201909/15/2025 215,000.00 238,632.80 228,334.53 10,298.27 13,334.53N/A
Cetera Investment ServicesMunicipal Bonds3.379%1.934%08/19/201910/01/2025 310,000.00 333,925.80 339,739.18 (5,813.38) 29,739.18N/A
Cetera Investment ServicesMunicipal Bonds4.250%3.258%04/11/201901/01/2026 500,000.00 545,435.00 529,769.03 15,665.97 29,769.03N/A
Cetera Investment ServicesMunicipal Bonds6.690%3.356%04/18/201904/15/2026 60,000.00 50,543.40 47,545.20 2,998.20 (12,454.80)N/A
Cetera Investment ServicesMunicipal Bonds3.250%2.903%04/18/201908/01/2026 500,000.00 530,015.00 514,790.69 15,224.31 14,790.69N/A
Cetera Investment ServicesMunicipal Bonds2.150%2.203%07/01/201912/01/2026 40,000.00 41,059.20 40,150.64 908.56 150.64
N/A
Cetera Investment ServicesMunicipal Bonds2.350%2.191%07/01/201912/01/2026 500,000.00 521,625.00 505,385.00 16,240.00 5,385.00 N/A
Cetera Investment ServicesMunicipal Bonds2.375%1.816%09/04/201912/01/2026 90,000.00 92,459.70 93,395.70 (936.00) 3,395.70
N/A
Cetera Investment ServicesMunicipal Bonds3.000%1.991%08/19/201902/01/2027 50,000.00 53,975.50 53,551.00 424.50 3,551.00
N/A
Cetera Investment ServicesMunicipal Bonds3.150%2.034%08/19/201903/15/2027 100,000.00 107,909.00 109,138.50 (1,229.50) 9,138.50 N/A
Cetera Investment ServicesMunicipal Bonds3.332%3.120%04/18/201904/15/2027 500,000.00 537,905.00 507,783.94 30,121.06 7,783.94 N/A
Cetera Investment ServicesMunicipal Bonds3.553%2.289%08/19/201905/01/2027 55,000.00 59,695.35 60,468.04 (772.69) 5,468.04
05/01/2026
Cetera Investment ServicesMunicipal Bonds3.865%2.470%08/19/201905/01/2027 55,000.00 61,650.60 60,986.48 664.12 5,986.48
05/01/2025
Cetera Investment ServicesMunicipal Bonds3.000%3.101%05/18/202009/01/2027 65,000.00 70,368.35 69,180.58 1,187.77 4,180.58 09/01/2025
Cetera Investment ServicesMunicipal Bonds2.817%2.817%09/25/201910/01/2027 35,000.00 28,105.35 27,969.55 135.80 (7,030.45)05/01/2025
Cetera Investment ServicesMunicipal Bonds3.230%1.828%08/19/201905/15/2027 145,000.00 160,229.35 160,827.31 (597.96) 15,827.31N/A
Cetera Investment ServicesMunicipal Bonds3.270%2.141%08/19/201903/15/2028 155,000.00 166,700.95 170,805.09 (4,104.14) 15,805.0909/15/2027
Cetera Investment ServicesMunicipal Bonds2.974%2.574%11/07/201904/01/2028 75,000.00 79,277.25 77,253.00 2,024.25 2,253.00 N/A
Cetera Investment ServicesMunicipal Bonds3.140%2.004%08/19/201908/01/2028 500,000.00 536,265.00 547,105.00 (10,840.00) 47,105.0008/01/2027
Cetera Investment ServicesMunicipal Bonds3.000%2.199%05/19/202008/15/2028 90,000.00 95,887.80 95,401.80 486.00 5,401.80
08/15/2025
Cetera Investment ServicesMunicipal Bonds3.000%1.942%08/19/201906/01/2029 115,000.00 125,667.40 125,961.80 (294.40) 10,961.80N/A
Broker Total74.4% 9,004,000.00 9,445,885.55 9,341,188.53 101,178.87 337,188.53
TOTAL INVESTMENTS100.0%$ 12,133,000.00$ 12,689,463.55$ 12,470,188.53$ 138,763.18$ 337,188.53
PORTFOLIO BY PRODUCT TYPEMATURITY SCHEDULE
5/31/2020% of4/30/2020% ofMonthlyMaturityCurrent Value%
Product TypeTotal ValueTotalTotal ValueTotalChangeLess than 1 year$1,663,303.2413.1%
Money Market$80,511.840.6%$160,173.471.3%($79,661.63)1 - 2 years2,099,683.0616.5%
CD's3,166,584.3125.0%3,160,889.3625.0%5,694.952 - 3 years856,976.506.8%
Government Bonds0.000.0%0.000.0%0.003 - 4 years 1,633,667.7012.9%
Municipal Bonds9,442,367.4074.4%9,320,588.4073.7%121,779.004 - 5 years1,287,021.8510.1%
TOTAL$12,689,463.55100.0%$12,641,651.23100.0%$47,812.325+ years5,148,811.2040.6%
TOTAL$12,689,463.55100.0%
/5γƭ
aƚƓĻǤ ağƩƉĻƷ
υЏͲЉЉЉͲЉЉЉ͵ЉЉ
ЋЎ͵Љі
Љ͵Џі
υЎͲЊЍБͲБЊЊ
υЎͲЉЉЉͲЉЉЉ͵ЉЉ
υЍͲЉЉЉͲЉЉЉ͵ЉЉ
υЌͲЉЉЉͲЉЉЉ͵ЉЉ
υЋͲЉВВͲЏБЌ
υЋͲЉЉЉͲЉЉЉ͵ЉЉ
υЊͲЏЌЌͲЏЏБ
υЊͲЏЏЌͲЌЉЌ
υЊͲЋБАͲЉЋЋ
υБЎЏͲВАА
υЊͲЉЉЉͲЉЉЉ͵ЉЉ
υЉ͵ЉЉ
DƚǝĻƩƓƒĻƓƷ .ƚƓķƭ
\[Ļƭƭ ƷŷğƓ ЊЊ Ώ Ћ ǤĻğƩƭЋ Ώ Ќ ǤĻğƩƭЌ Ώ Ѝ ǤĻğƩƭЍ Ώ Ў ǤĻğƩƭЎњ ǤĻğƩƭ
aǒƓźĭźƦğƌ .ƚƓķƭЉ͵Љі
ǤĻğƩ
АЍ͵Ѝі
ELECTRIC DIVISION
Operating Revenue
May 2020
CLASSAMOUNTKWH$/KWH
Street Lights$0.448$0.05500
Electric Residential Service$383,429.943,746,770$0.10234
All Electric Residential Service$14,340.88136,577$0.10500
Electric Small General Service$117,447.151,183,572$0.09923
Electric Large General Service$551,377.365,991,360$0.09203
Electric Large Industrial Service$660,766.408,789,000$0.07518
Total$1,727,362.17 19,847,287$0.08703
Power Adjustment$0.00000
Rate Without Power Adjustment$0.08703
Electric Division Year-to-Date
2020 $ Amount2019 $ Amount2020 KWH/102019 KWH/10
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
MAY 2020
CLASSAMOUNTMCF$/MCF
Residential$169,154.8114,913$11.34278
Commercial$111,898.1111,620$9.62979
Large Industrial$45,976.715,297$8.67976
Large Industrial Contracts$196,265.3155,098$3.56211
Total$523,294.9486,928$6.01987
Fuel Adjustment-$0.87000
Rate Without Fuel Adjustment$6.88987
Natural Gas Division Year-to-Date
2020 $ Amount2019 $ Amount2020 MCF2019 MCF
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:
Review Policies
Presenter: Agenda Item Type:
Jeremy Carter
Review Policies
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
As part of HUC's standard operating procedures, a continual policy review is practiced.
This month, the following policies were reviewed and no changes are recommended on
these policies at this time:
i. Section 6 of Exempt Handbook
ii. Section 6 of Non-Exempt Handbook
BOARD ACTION REQUESTED:
None
Fiscal Impact:
Included in current budget: Budget Change:
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
EXEMPT
SECTION 6 - HEALTH AND SAFETY
HUC is very concerned about the safety of its employees and the public HUC serves. All
employees are required to follow all HUC safety rules and make the safety of themselves, their co-
workers, and the public a priority. To encourage a safe workplace, the Commission has adopted
the APPA
A CCIDENTS AND I NJURIES
Employees must immediately report to a Director, Manager or Supervisor job-related illnesses, all
accidents and injuries (regardless how minor) that occur during the course of employment with
HUC. The Employee and Supervisor must fill out and sign an accident report.
If a supervisor is not available and the nature of injury or illness requires immediate treatment, the
employee is to go to the nearest available medical facility for treatment and, as soon as possible,
notify his/her supervisor of the action taken. In the case of a serious emergency, 911 should be
called.
If the injury is not of an emergency nature, but requires medical attention, the employee will report
it to the supervisor and make arrangements for a medical appointment.
Worker's compensation benefits and procedures to return to work will be applied according to
applicable state and federal laws. Workers Compensation insurer is League of Minnesota Cities
Insurance Trust (LMCIT).
Pursuant to Minnesota Law, HUC has established a labor-management safety committee that
investigates or reviews all accidents to identify causes of the accidents and suggest ways to prevent
reoccurrence of the accident. The safety committee may request to interview any employee
involved in an accident or any employee who may have knowledge of an accident. All employees
are required to cooperate with the safety committee.
U NSAFE C ONDITIONS OR P RACTICES
Employees are required to report to a Director, Manager or Supervisor any unsafe conditions or
practices they observe, including failure of a co-worker to follow safety rules or procedures.
E MPLOYEE R IGHT-T O-K NOW
-to-Know law requires HUC to inform employees when they may be
exposed to hazardous substances, harmful physical agents, or infectious agents. HUC has adopted
a written Employee Right-to-Know program. HUC has evaluated and reevaluates the work sites
to determine the presence of hazardous substances. Employees shall become familiar with the
location of Safety Data Sheets (SDS) in their work area.
NON-EXEMPT
SECTION 6 HEALTH AND SAFETY
HUC is very concerned about the safety of its employees and the public HUC serves. All
employees are required to follow all HUC safety rules and make the safety of themselves, their co-
workers, and the public a priority. To encourage a safe workplace, The Commission has adopted
the APPA
A CCIDENTS AND I NJURIES
Employees must immediately report to a Director, Manager or Supervisor job-related illnesses, all
accidents and injuries (regardless how minor) that occur during the course of employment with
HUC. The Employee and Supervisor must fill out and sign an accident report.
If a supervisor is not available and the nature of injury or illness requires immediate treatment, the
employee is to go to the nearest available medical facility for treatment and, as soon as possible,
notify his/her supervisor of the action taken. In the case of a serious emergency, 911 should be
called.
If the injury is not of an emergency nature, but requires medical attention, the employee will report
it to the supervisor and make arrangements for a medical appointment.
Worker's compensation benefits and procedures to return to work will be applied according to
applicable state and federal laws. Workers Compensation insurer is League of Minnesota Cities
Insurance Trust (LMCIT).
Pursuant to Minnesota Law, HUC has established a labor-management safety committee that
investigates or reviews all accidents to identify causes of the accidents and suggest ways to prevent
reoccurrence of the accident. The safety committee may request to interview any employee
involved in an accident or any employee who may have knowledge of an accident. All employees
are required to cooperate with the safety committee.
U NSAFE C ONDITIONS OR P RACTICES
Employees are required to report to a Director or Manager any unsafe conditions or practices they
observe, including failure of a co-worker to follow safety rules or procedures.
E MPLOYEE R IGHT-T O-K NOW
-to-Know law requires HUC to inform employees when they may be
exposed to hazardous substances, harmful physical agents, or infectious agents. HUC has adopted
a written Employee Right-to-Know program. HUC has evaluated and reevaluates the work sites
to determine the presence of hazardous substances. Employees shall become familiar with the
location of Safety Data Sheets (SDS) in their work area.
S AFETY G LASSES
Employees must pay for their own eye examination (health insurance will generally cover 100%
of examination expense). Any supplier who can provide certification that the glasses meet OSHA
requirements may fill the prescription. It is recommended that employees fill their prescriptions at
any optical department who accepts the Minnesota State Contract. Forms are available in the
business office.
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
Req#8444-Plant#2Substationcircuitbreakers
Presenter:Agenda Item Type:
J.Carter
NewBusiness
Time Requested (Minutes):
10
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
Requisition#8444isforthepurchaseofthree13.8kVroll-inreplacementcircuitbreakers
madebyABBforthePlant#2Substation.Alsoincludedinthepriceisthecostforan
ABBtechniciantotraveltothesitetofitthebreakersineachbreakercell.
TheseABBcircuitbreakerswillreplacetheexistingGeneralElectriccircuitbreakers
whichhavebeeninservicefor35-40yearsandhavehadmechanicalproblemsinthe
recentpast,evenwithroutinemaintenance.
HUChasperiodicallybeenreplacingbreakersatthePlant#1andPlant#2substations
withthesameABBbreakersduetotheirspecificretrofitcompatibilitywiththeGE
"Magne-Blast"breakerandswitchgear.
WESCOistheregionaldistributorforABBandthesolesupplierfortheseretrofit
breakers.
Thisbreakerreplacementisaplannedupgradeandwasincludedinthe2020CIP
budgetaspartofthePlant#2Substationproject.($85,000budgeted)
BOARD ACTION REQUESTED:
Approverequisition#8444-Plant#2Substationcircuitbreakers
Fiscal Impact:
$84,285.00
Included in current budget: Budget Change:
Yes
No
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
ABB Quote Number: QT-20-01746738 Date: 02/27/2020
PREPARED FOR
Hutchinson Utilities Commission
RE: Medium Voltage Roll-in Replacement Circuit Breakers
SUBMITTED BY:
WESCO Distribution, Inc.
ABB Inc.
Medium Voltage Services
Phone: (800) 634-7643
Page 1 of 12
2300 Mechanicsville Road
Fax: (843) 413-4850
Florence, SC 29501
Page 1
T ABLE OF C ONTENTS
1.0 I NTRODUCTION .......................................................... 3
2.0 B ASE S COPE E QUIPMENT .......................................... 3
3.0 C LARIFICATIONS ........................................................ 3
4.0 P RICING .................................................................... 5
5.0 R ENEWAL P ARTS & A CCESSORIES ............................. 5
6.0 T ERMS AND C ONDITIONS ............................................ 6
ABB Inc.
Medium Voltage Services
Phone: (800) 634-7643
Page 2 of 12
2300 Mechanicsville Road
Fax: (843) 413-4850
Florence, SC 29501
Page 2
1.0 Introduction
1.1 ABB Inc. Medium Voltage Services is a leading manufacturer of low and
medium voltage replacement circuit breakers. Our products are
assembled in a vertically integrated circuit breaker factory. ABB Inc. MV
Services has all design engineering functions and all manufacturing
support functions that perform metal fabrication, metal finishing (heat treat,
painting, and/or plating), assembly, and production testing. This service
will be billed on a time and material basis.
2.0 Base Scope Equipment
2.1 New Replacement Circuit Breaker - We propose to replace the existing
circuit breaker(s) with RMVAC, medium voltage roll-in replacement circuit
breaker(s). The RMVAC replacement breaker(s) which will utilize an ABB
Inc. AMVAC medium voltage circuit breaker as the primary operating
element and brings all the benefits of increased performance with reduced
maintenance intervals.
2.2 New Vacuum Breaker Element This AMVAC operating mechanism
consists of a magnetic actuator, control module with sensor systems,
storage capacitor, and is rated for 3-5 cycle operation. Supplementary
components are available for manual opening.
2.3 Breaker Carriage and Interlocks - A rugged steel frame with mechanical
and electrical interlock safety features to fit your existing switchgear cell
with little or no modifications.
2.4 All new components - The breaker element, breaker frame, interlocks,
primary bushing, secondary disconnects and wiring are all completely
new.
2.5 Non-hygroscopic Bushings - All circuit breaker bushings will be new
and feature track resistant, non-hygroscopic epoxy construction.
2.6 Design Testing - Roll-in replacement circuit breakers offered conform to
the applicable portions of ANSI C37.59, C37.04, and C37.06.
2.7 Production Testing - Production testing of the roll-in replacement
elements is in accordance with the applicable portions of ANSI C37.09.
Objective evidence of that testing is provided with each circuit breaker
upon request.
3.0 Clarifications
3.1 In order to insure proper fit and tolerances, ABB may recommend a
customer site visit after receipt of order to verify design requirements. If
verification is necessary, a short outage will be required for this purpose.
Customer will be notified of this requirement immediately upon receipt of
order and all required technical information (Section 3.3 below.)
ABBGTC073101 - 3 -
3.1.1- New Circuit Breaker Design - If new Circuit breaker design is
required of ABB Per Customer Specifications - ABB will request
Customer's Approval and Sign off prior to manufacturing new breaker.
Shipment schedules will be determined from the date of ABB Engineering
and Customer Approval acceptance.
3.1.2 - Prototype - If ABB determines a prototype is required for new
design; ABB will require a customer site visit for test fitting and
measurements. A complete bus outage is required for said site visit.
Customer will be notified of this requirement immediately.
For existing designs prototypes are not be required.
3.2 Customer is responsible for providing ABB Inc. with an accurate control
wiring drawing for breaker and cubicle so that ABB Inc. can ensure
secondary contacts correctly match the existing switchgear control
scheme.
3.3 Delivery
3.3.1 Quoted lead times are based on current production levels.
3.3.2 Actual lead times are dependent on available production space at
time of order entry and/or release to manufacturing.
3.3.3 will not begin until receipt of all required technical
information from customer and completion of any required site visit
for engineering measurements
Customer Requirement
Specification must completed prior to placing an order
(Double click on Icon to complete)
Roll-in
Replacement Spec Sheet R06.xlsx
Note(s):
Exception(s):
ABBGTC073101 - 4 -
4.0Pricing
Item Qty Product Type Net Price Each Item Total
(USD)
1 2 RIR Magneblast AM 13.8-750-5H, 15kV 1200A $26,295.00 $52,590.00
RIR AMVAC Magneblast AM 13.8-750-5H, 15kV 1200A
REPLACING
Magneblast AM 13.8-750-5H, 15kV 1200A
REQUIRED:
-COMPLETION OF SPECIFICATION WORKSHEET UPON
ORDER ENTRY
-WIRING DIAGRAMS UPON ORDER ENTRY
ABB Internal Order Entry Codes:
Product Code: \[9AAF400373\] - Circuit Breakers / Service /
Extension, Upgrades and Retrofits / Retrofits
Source Location: \[9AAE300864\] - United States - Florence -
3442 MV Service
2 1 RIR Magneblast AM 13.8-750-5H, 15kV 2000A $28,978.00 $28,978.00
RIR AMVAC Magneblast AM 13.8-750-5H, 15kV 2000A
REPLACING
Magneblast AM 13.8-750-5H, 15kV 2000A
REQUIRED:
-COMPLETION OF SPECIFICATION WORKSHEET UPON
ORDER ENTRY
-WIRING DIAGRAMS UPON ORDER ENTRY
ABB Internal Order Entry Codes:
Product Code: \[9AAF400373\] - Circuit Breakers / Service /
Extension, Upgrades and Retrofits / Retrofits
Source Location: \[9AAE300864\] - United States - Florence -
3442 MV Service
3 1 MV INSTALLATION AND COMMISSIONING $2,717.00 $2,717.00
SUPPORT or SUPERVISION
*CUSTOMER MUST SPECIFY WHICH IS
REQUIRED ON PO*
(1) FIELD TECHNICIAN
(1) DAY ON SITE
(1) MOBILIZATION / DEMOBILIZATION
REQUIRED
* WHEN ORDERING ANY RIR CIRCUIT
BREAKER INSTALLATION AND
COMMISSIONING and/or SUPERVISION MUST
BE PERFORMED BY ABB CERTIFIED
PERSONNEL AND ORDERED IN
CONJUNCTION WITH RIR BREAKERS.
ABBGTC073101 - 5 -
PART NUMBER MUST APPEAR ON
PURCHASE ORDER AS A SEPARATE LINE
ITEM.
Scope of work:
Ø Removal of existing breakers and set aside for
storage or removal by the customer
Ø Prepare switchgear cubical to accept the new
RIR breakers and make upgrade
recommendations where required.
Ø Identify all electrical and mechanical
connections that may be in place at each
mounting position during the disassembly process
of existing circuit breakers.
Ø Safety Interlock verification
Ø Functional operation
Ø Operations training for (2) customer facility
technicians
ABB Internal Order Entry Codes:
Product Code: \[9AAF400377\] - Medium Voltage /
Circuit Breakers / Service / Spares and
Consumables
Source Location: \[9AAE300864\] - United States -
Florence - 3442 MV Service
Grand Sales Total: $84,285.00 USD
Cancellation Schedule
25% After Order Entry
50% After release to order of material
75% After start of Fabrication
4.1 Freight is EXWorks,Origin, Prepaid and Added.
4.2 Lead time is in 12-16 weeks after receipt of order and all customers supplied
technical data. See section 3.3 for required customer technical data.
4.3 Additional days of installation and commissioning supervision and /or actual
installation and commissioning services can be quoted based on customer
installation schedule.
See attachment Field service Rate Sheet 1ZUL9520-001
5.0 Renewal Parts and Accessories
AMVAC
NOTICE PARTS VARY PER BREAKER STYLE (NOT ALL ARE REQUIRED)
Description Catalog Number No. Per Breaker
Manual Opening Handle (Required) 19540G00 1
HV (125/250 VAC/VDC) Control Board 19911P40 1
ABBGTC073101 - 6 -
LV 48V DC Control Board 19911P30 1
AUX. Switch 5 NO Contacts GCE7002397R0119 1 or more
AUX. Switch 5 NC Contacts GCE7002397R0124 1 or more
Pushbutton Assy. for 25kA Breakers 19920G40 1
Pushbutton Assy. for 31.5 - 50kA Breakers 19920G50 1
MEMBRANE,SWITCH,ASSY. 19949G10 1
Capacitor GCE7004905R0101 1 or more
RVAC
N/A
NOTICE:
AMVAC AC CHARGE W/ DC TRIP
Description: It has been a common design practice in the US to specify switchgear circuit breakers with
AC power for the close and motor charging circuit, and the trip circuit with DC power. This decision
allows the station batteries to be a smaller capacity, since they are only used in the dedicated DC power
circuit. The source for the AC power is often the station itself, the voltage being transformed down from
the primary station power. In the event of a station blackout, AC control power is usually lost. The trip
(opening) circuit is still operational because it is working off the battery. Operational procedures at
customers often required all breakers be opened before power is restored, so the power can be brought
on slowly to prevent an additional blackout. In addition, since AC power is less reliable than dedicated
battery power, the protective relay circuits are still operational in the event of loss of AC power.
It is a common practice of station designers to specify switchgear with AC close and spring charging
circuits, and DC for opening circuits. This allows the station batteries to be sized smaller, the trade off is
that in emergencies, where AC power is lost, the breakers could be protected by the protective relays,
and tripped, but could not be closed again until AC control power is restored.
Spring mechanism breakers typically have a separate charging motor circuit which would be powered
with AC in a breaker that contains both AC and DC control. It has been the Medium Voltage Services
practice to power the control boards in replacement (RIR) breakers with charging motor power (AC)
because it is convenient to use the existing charging motor circuit; no wiring changes would be required in
the cell. Since this power is necessary to both open and close the breakers, loss of AC power would lose
the ability of the protective relays to protect the breaker primary circuit. In addition, the customer would
lose his ability to open the breakers before control power is lost.
Customers must be aware of this AMVAC feature.
This will educate the customer to one of three options:
1 - Do nothing, loss of the protective relays and tripping abilities with loss of AC is not a concern.
2 - Rewire the cell so DC power can be used to power the control board.
3 - Change operating procedures.
6.0 Terms and Conditions
ABBGTC073101 - 7 -
6.1 This proposal contains proprietary information and is considered confidential to
ABB Inc. It is submitted upon the expressed condition that the information
contained herein will not be released to competitors or otherwise used directly
or indirectly in a detrimental way to the interest of ABB Inc.
6.2 All products are offered in accordance with ABB Inc. (Service and Related
Products Conditions of Sale Form 7-2001 Issue) attached hereto.
6.3 This proposal shall remain valid for 60 days from the date of issue.
Thank you very much for your interest in ABB Inc.
hesitate to call me immediately if I can be of further assistance at 843-413-4758.
ABBGTC073101 - 8 -
I. ABB INC. GENERAL TERMS AND CONDITIONS
(b) If in the judgment of ABB the financial condition of
OF SALE
Purchaser at any time prior to delivery does not justify the
terms of payment specified, ABB may require payment in
1. General.
advance, payment security satisfactory to ABB, or may
The terms and conditions contained herein, together with terminate the order, whereupon ABB shall be entitled to
any additional or different terms contained in ABB's receive reasonable cancellation charges. If delivery is
Proposal, if any, submitted to Purchaser (which Proposal delayed by Purchaser, payment shall be due on the date
shall control over any conflicting terms), constitute the ABB is prepared to make delivery. Delays in delivery or
entire agreement (the "Agreement") between the parties nonconformities in any installments delivered shall not
with respect to the order and supersede all prior relieve Purchaser of its obligation to accept and pay for
communications and agreements regarding the order. remaining installments.
Acceptance by ABB of the order, or Purchaser's (c) Purchaser shall pay, in addition to the overdue
acceptance of ABB's Proposal, is expressly limited to and payment, a late charge equal to the lesser of 1 1/2% per
conditioned upon Purchaser's acceptance of these terms month or any part thereof or the highest applicable rate
and conditions, payment for or acceptance of any allowed by law on all such overdue amounts plus ABB's
performance by ABB being acceptance. These terms and attorneys' fees and court costs incurred in connection with
conditions may not be changed or superseded by any collection.
different or additional terms and conditions proposed by
4. Changes.
Purchaser to which terms ABB hereby objects. Unless the
context otherwise requires, the term "Equipment" as used (a) Any changes requested by Purchaser affecting the
herein means all of the equipment, parts, accessories ordered scope of work must be accepted by ABB and
sold, and all software and software documentation, if any, resulting adjustments to affected provisions, including
licensed to Purchaser by ABB ("Software") under the price, schedule, and guarantees mutually agreed in
order. Unless the context otherwise requires, the term writing prior to implementation of the change.
"Services" as used herein means all labor, supervisory, (b) ABB may, at its expense, make such changes in the
technical and engineering, installation, repair, consulting Equipment or Services as it deems necessary, in its sole
or other services provided by ABB under the order. As discretion, to conform the Equipment or Services to the
used herein, the term "Purchaser" shall include the initial applicable specifications. If Purchaser objects to any such
end use of the Equipment and/or services; provided, changes, ABB shall be relieved of its obligation to conform
however, that Paragraph 13(a) shall apply exclusively to to the applicable specifications to the extent that
the initial end user. conformance may be affected by such objection.
2. Prices. 5. Delivery.
(a) Unless otherwise specified in writing, all Proposals (a) All Equipment manufactured, assembled or
expire thirty (30) days from the date thereof. warehoused in the continental United States is delivered
(b) Unless otherwise stated herein, Services prices are F.O.B. point of shipment. Equipment shipped from
based on normal business hours (8 a.m. to 5 p.m. Monday outside the continental United States is delivered F.O.B.
through Friday). Overtime and Saturday hours will be United States port of entry. Purchaser shall be
billed at one and one-half (11/2) times the hourly rate; and responsible for any and all demurrage or detention
Sunday hours will be billed at two (2) times the hourly rate; charges.
holiday hours will be billed at three (3) times the hourly (b) If the scheduled delivery of Equipment is delayed by
rate. If a Services rate sheet is attached hereto, the Purchaser or by Force Majeure, ABB may move the
applicable Services rates shall be those set forth in the Equipment to storage for the account of and at the risk of
rate sheet. Rates are subject to change without notice. Purchaser whereupon it shall be deemed to be delivered.
(c) The price does not include any federal, state or local (c) Shipping and delivery dates are contingent upon
property, license, privilege, sales, use, excise, gross Purchaser's timely approvals and delivery by Purchaser of
receipts, or other like taxes which may now or hereafter any documentation required for ABB's performance
be applicable. Purchaser agrees to pay or reimburse any hereunder.
such taxes which ABB or its suppliers are required to pay (d) Claims for shortages or other errors in delivery must
or collect. If Purchaser is exempt from the payment of any be made in writing to ABB within ten days of delivery.
tax or holds a direct payment permit, Purchaser shall, Equipment may not be returned except with the prior
upon order placement, provide ABB a copy, acceptable to written consent of and subject to terms specified by ABB.
the relevant governmental authorities of any such Claims for damage after delivery shall be made directly by
certificate or permit. Purchaser with the common carrier.
(d) The price includes customs duties and other
6. Title & Risk of Loss.
importation or exportation fees, if any, at the rates in effect
on the date Except with respect to Software (for which title shall not
in such duties, fees, or rates, shall increase the price by pass, use being licensed) title to Equipment shall remain
ABB's additional cost. in ABB until fully paid for. Notwithstanding any agreement
with respect to delivery terms or payment of transportation
3. Payment. charges, risk of loss or damage shall pass to Purchaser
(a) Unless specified to the contrary in writing by ABB, upon delivery.
payment terms are net cash, payable without offset, in
United States Dollars, 30 days from date of invoice by wire
transfer to the account designated by ABB in the
Proposal.
ABBGTC073101 - 9 -
7. Inspection, Testing and Acceptance. hereunder with respect to any Equipment which (i) has
(a) Any inspection by Purchaser of Equipment on ABB's been improperly repaired or altered; (ii) has been
premises shall be scheduled in advance to be performed subjected to misuse, negligence or accident; (iii) has been
during normal working hours. used in a manner contrary to ABB's instructions; (iv) is
(b) If the order provides for factory acceptance testing, comprised of materials provided by or a design specified
ABB shall notify Purchaser when ABB will conduct such by Purchaser; or (v) has failed as a result of ordinary wear
testing prior to shipment. Unless Purchaser states and tear. Equipment supplied by ABB but manufactured
specific objections in writing within ten (10) days after by others is warranted only to the extent of the
completion of factory acceptance testing, completion of
the acceptance test constitutes Purchaser's factory provided by the manufacturer will be allowed.
acceptance of the Equipment and its authorization for (d) Software Warranty and Remedies. ABB warrants that,
shipment. except as specified below, the Software will, when
(c) If the order provides for site acceptance testing, testing properly installed, execute in accordance with ABB's
will be performed by ABB personnel to verify that the published specification. If a nonconformity to the
Equipment has arrived at site complete, without physical foregoing warranty is discovered during the period ending
damage, and in good operating condition. Completion of one (1) year after the date of shipment and written notice
site acceptance testing constitutes full and final of such nonconformity is provided to ABB promptly after
acceptance of the Equipment. If, through no fault of ABB, such discovery and within that period, including a
acceptance testing is not completed within thirty (30) days description of the nonconformity and complete information
after arrival of the Equipment at the site, the site about the manner of its discovery, ABB shall correct the
acceptance test shall be deemed completed and the nonconformity by, at its option, either (i) modifying or
Equipment shall be deemed accepted. making available to the Purchaser instructions for
modifying the Software; or (ii) making available at ABB's
8. Warranties and Remedies.
facility necessary corrected or replacement programs.
(a) Equipment and Services Warranty. ABB warrants that ABB shall have no obligation with respect to any
Equipment (excluding Software, which is warranted as nonconformities resulting from (i) unauthorized
specified in paragraph (d) below) shall be delivered free modification of the Software or (ii) Purchaser-supplied
of defects in material and workmanship and that Services software or interfacing. ABB does not warrant that the
shall be free of defects in workmanship. The Warranty functions contained in the software will operate in
Remedy Period for Equipment (excluding Software, Spare combinations which may be selected for use by the
Parts and Refurbished or Repaired Parts) shall end twelve Purchaser, or that the software products are free from
(12) months after installation or eighteen (18) months after errors in the nature of what is commonly categorized by
date of shipment, whichever first occurs. The Warranty the computer industry as "bugs".
Remedy Period for new spare parts shall end twelve (12) (e) THE FOREGOING WARRANTIES ARE EXCLUSIVE
months after date of shipment. The Warranty Remedy AND IN LIEU OF ALL OTHER WARRANTIES OF
Period for refurbished or repaired parts shall end ninety QUALITY AND PERFORMANCE, WHETHER WRITTEN,
(90) days after date of shipment. The Warranty Remedy ORAL OR IMPLIED, AND ALL OTHER WARRANTIES
Period for Services shall end ninety (90) days after the INCLUDING ANY IMPLIED WARRANTIES OF
date of completion of Services. MERCHANTABILITY OR FITNESS FOR A PARTICULAR
(b) Equipment and Services Remedy. If a nonconformity PURPOSE OR USAGE OF TRADE ARE HEREBY
to the foregoing warranty is discovered in the Equipment DISCLAIMED. THE REMEDIES STATED HEREIN
or Services during the applicable Warranty Remedy SIVE REMEDIES
Period, as specified above, under normal and proper use
and provided the Equipment has been properly stored, WARRANTY.
installed, operated and maintained and written notice of
9. Patent Indemnity.
such nonconformity is provided to ABB promptly after
such discovery and within the applicable Warranty (a) ABB shall defend at its own expense any action
Remedy Period, ABB shall, at its option, either (i) repair or brought against Purchaser alleging that the Equipment or
replace the nonconforming portion of the Equipment or re-the use of the Equipment to practice any process for which
perform the nonconforming Services or (ii) refund the
portion of the price applicable to the nonconforming infringes any claim of a patent of the United States of
portion of Equipment or Services. If any portion of the America and to pay all damages and costs finally awarded
Equipment or Services so repaired, replaced or re-in any such action, provided that Purchaser has given
performed fails to conform to the foregoing warranty, and ABB prompt written notice of such action, all necessary
written notice of such nonconformity is provided to ABB assistance in the defense thereof and the right to control
promptly after discovery and within the original Warranty all aspects of the defense thereof including the right to
Remedy Period applicable to such Equipment or Services settle or otherwise terminate such action in behalf of
or 30 days from completion of such repair, replacement or Purchaser.
re-performance, whichever is later, ABB will repair or (b) ABB shall have no obligation hereunder and this
replace such nonconforming Equipment or re-perform the provision shall not apply to: (i) any other equipment or
nonconforming Services. The original Warranty Remedy processes, including Equipment or Processes which have
Period shall not otherwise be extended. been modified or combined with other equipment or
(c) Exceptions. ABB shall not be responsible for providing process not supplied by ABB; (ii) any Equipment or
working access to the nonconforming Equipment, Process supplied according to a design, other than an
including disassembly and re-assembly of non-ABB ABB design, required by Purchaser; (iii) any products
supplied equipment, or for providing transportation to or manufactured by the Equipment or Process; (iv) any
from any repair facility, all of which shall be at Purchaser's patent issued after the date hereof; or (v) any action
risk and expense. ABB shall have no obligation
ABBGTC073101 - 10 -
settled or otherwise terminated without the prior written ABB assumes no responsibility for compliance therewith.
consent of ABB. If Purchaser desires a modification as a result of any such
(c) If, in any such action, the Equipment is held to change or revision, it shall be treated as a change per
constitute an infringement, or the practice of any Process Article 4. Nothing contained herein shall be construed as
using the Equipment is finally enjoined, ABB shall, at its imposing responsibility or liability upon ABB for obtaining
option and its own expense, procure for Purchaser the any permits, licenses or approvals from any agency
right to continue using said Equipment; or modify or required in connection with the supply, erection or
replace it with non-infringing equipment or, with operation of the Equipment. This Agreement shall be
Purchaser's assistance, modify the Process so that it governed by the laws of the State of New York, but
becomes non-infringing; or remove it and refund the excluding the provisions of the United Nations Convention
portion of the price allocable to the infringing Equipment. on Contracts for the International Sale of Goods and
THE FOREGOING PARAGRAPHS STATE THE ENTIRE excluding New York law with respect to conflicts of law.
LIABILITY OF ABB AND EQUIPMENT Purchaser agrees that all causes of action against ABB
MANUFACTURER FOR ANY PATENT INFRINGEMENT. under this Agreement shall be brought in the State Courts
(d) To the extent that said Equipment or any part thereof of the State of New York, or the U.S. District Court for the
is modified by Purchaser, or combined by Purchaser with Southern District of New York. If any provision hereof,
equipment or processes not furnished hereunder (except partly or completely, shall be held invalid or
to the extent that ABB is a contributory infringer) or said unenforceable, such invalidity or unenforceability shall not
Equipment or any part thereof is used by Purchaser to affect any other provision or portion hereof and these
perform a process not furnished hereunder by ABB or to terms shall be construed as if such invalid or
produce an article, and by reason of said modification, unenforceable provision or portion thereof had never
combination, performance or production, an action is existed.
brought against ABB, Purchaser shall defend and
12. OSHA.
indemnify ABB in the same manner and to the same
extent that ABB would be obligated to indemnify ABB warrants that the Equipment will comply with the
Purchaser under this "Patent Indemnity" provision. relevant standards of the Occupational Safety and Health
Act of 1970 ("OSHA") and the regulations promulgated
10. Limitation of Liability.
thereunder as of the date of the Proposal. Upon prompt
(a) In no event shall ABB, its suppliers or subcontractors written notice from the Purchaser of a breach of this
be liable for special, indirect, incidental or consequential warranty, ABB will replace the affected part or modify it so
damages, whether in contract, warranty, tort, negligence, that it conforms to such standard or regulation. ABB's
strict liability or otherwise, including, but not limited to, loss obligation shall be limited to such replacement or
of profits or revenue, loss of use of the Equipment or any modification. In no event shall ABB be responsible for
associated equipment, cost of capital, cost of substitute liability arising out of the violation of any OSHA standards
equipment, facilities or services, downtime costs, delays, relating to or caused by Purchaser's design, location,
and claims of customers of the Purchaser or other third operation, or maintenance of the Equipment, its use in
parties for any damages. ABB's liability for any claim association with other equipment of Purchaser, or the
whether in contract, warranty, tort, negligence, strict alteration of the Equipment by any party other than ABB.
liability, or otherwise for any loss or damage arising out of,
13. Software License.
connected with, or resulting from this Agreement or the
performance or breach thereof, or from the design, (a) ABB owns all rights in or has the right to sublicense all
manufacture, sale, delivery, resale, repair, replacement, of the Software, if any, to be delivered to Purchaser under
installation, technical direction of installation, inspection, this Agreement. As part of the sale made hereunder
operation or use of any equipment covered by or furnished Purchaser hereby obtains a limited license to use the
under this Agreement, or from any services rendered in Software, subject to the following: (i) The Software may
connection therewith, shall in no case (except as provided be used only in conjunction with equipment specified by
in the section entitled "Patent Indemnity") exceed one-half ABB; (ii) The Software shall be kept strictly confidential;
(1/2) of the purchase price allocable to the Equipment or (iii) The Software shall not be copied, reverse engineered,
part thereof or Services which gives rise to the claim. or modified; (iv) The Purchaser's right to use the Software
(b) All causes of action against ABB arising out of or shall terminate immediately when the specified equipment
relating to this Agreement or the performance or breach is no longer used by the Purchaser or when otherwise
hereof shall expire unless brought within one year of the terminated, e.g. for breach, hereunder; and (v) the rights
time of accrual thereof. to use the Software are non-exclusive and non-
(c) In no event, regardless of cause, shall ABB be liable transferable, except with ABB's prior written consent.
for penalties or penalty clauses of any description or for (b) Nothing in this Agreement shall be deemed to convey
indemnification of Purchaser or others for costs, to Purchaser any title to or ownership in the Software or
damages, or expenses arising out of or related to the the intellectual property contained therein in whole or in
Equipment and/Services. part, nor to designate the Software a "work made for hire"
under the Copyright Act, nor to confer upon any person
11. Laws and Regulations.
who is not a named party to this Agreement any right or
ABB does not assume any responsibility for compliance remedy under or by reason of this Agreement. In the
with federal, state or local laws and regulations, except as event of termination of this License, Purchaser shall
expressly set forth herein, and compliance with any laws immediately cease using the Software and, without
and regulations relating to the operation or use of the retaining any copies, notes or excerpts thereof, return to
Equipment or Software is the sole responsibility of the ABB the Software and all copies thereof and shall remove
Purchaser. All laws and regulations referenced herein all machine readable Software from all of Purchaser's
shall be those in effect as of the Proposal date. In the storage media.
event of any subsequent revisions or changes thereto,
ABBGTC073101 - 11 -
14. Inventions and Information. ABB. If an exportlicense is not granted or, if once
Unless otherwise agreed in writing by ABB and granted, is thereafter revoked or modified by the
Purchaser, all right, title and interest in any inventions, appropriate authorities, this Agreement may be canceled
developments, improvements or modifications of or for by ABB without liability for damages of any kind resulting
Equipment and Services shall remain with ABB. Any from such cancellation. At ABB's request, Purchaser shall
design, manufacturing drawings or other information provide to ABB a Letter of Assurance and End-User
submitted to the Purchaser remains the exclusive property Statement in a form reasonably satisfactory to ABB.
of ABB. Purchaser shall not, without ABB's prior written
19. Assignment.
consent, copy or disclose such information to a third party.
Such information shall be used solely for the operation or Any assignment of this Agreement or of any rights or
maintenance of the Equipment and not for any other obligations under the Agreement without prior written
purpose, including the duplication thereof in whole or in consent of ABB shall be void.
part.
20. Nuclear Insurance Indemnity.
15. Force Majeure.
For applications in nuclear projects, the Purchaser and/or
ABB shall neither be liable for loss, damage, detention or its end user customer shall have complete insurance
delay nor be deemed to be in default for failure to perform protection against liability and property damage resulting
when prevented from doing so by causes beyond its from a nuclear incident to and shall indemnify ABB, its
reasonable control including but not limited to acts of war subcontractors, suppliers and vendors against all claims
(declared or undeclared), Acts of God, fire, strike, labor resulting from a nuclear incident.
difficulties, acts or omissions of any governmental
authority or of Purchaser, compliance with government 21. Resale.
regulations, insurrection or riot, embargo, delays or If Purchaser resells any of the Equipment, the sale terms
shortages in transportation or inability to obtain necessary shall limit ABB's liability to the buyer to the same extent
labor, materials, or manufacturing facilities from usual that ABB's liability to Purchaser is limited hereunder.
sources or from defects or delays in the performance of
22. Entire Agreement.
its suppliers or subcontractors due to any of the foregoing
enumerated causes. In the event of delay due to any such This Agreement constitutes the entire agreement between
cause, the date of delivery will be extended by period ABB and Purchaser. There are no agreements,
equal to the delay plus a reasonable time to resume understandings, restrictions, warranties, or
production, and the price will be adjusted to compensate representations between ABB and Purchaser other than
ABB for such delay. those set forth herein or herein provided.
16. Cancellation.
Any order may be cancelled by Purchaser only upon prior
written notice and payment of termination charges,
including but not limited to, all costs identified to the order
incurred prior to the effective date of notice of termination
and all expenses incurred by ABB attributable to the
termination, plus a fixed sum of ten (10) percent of the
final total price to compensate for disruption in scheduling,
planned production and other indirect costs.
17. Termination.
No termination by Purchaser for default shall be effective
unless, within fifteen (15) days after receipt by ABB of
Purchaser's written notice specifying such default, ABB
shall have failed to initiate and pursue with due diligence
correction of such specified default.
18. Export Control.
(a) Purchaser represents and warrants that the Equipment
and Services provided hereunder and the "direct product"
thereof are intended for civil use only and will not be used,
directly or indirectly, for the production of chemical or
biological weapons or of precursor chemicals for such
weapons, or for any direct or indirect nuclear end use.
Purchaser agrees not to disclose, use, export or re-export,
directly or indirectly, any information provided by ABB or
the "direct product" thereof as defined in the Export
Control Regulations of the United States Department of
Commerce, except in compliance with such Regulations.
(b) If applicable, ABB shall file for a U.S. export license,
but only after appropriate documentation for the license
application has been provided by Purchaser. Purchaser
shall furnish such documentation within a reasonable time
after order acceptance. Any delay in obtaining such
license shall suspend performance of this Agreement by
ABBGTC073101 - 12 -
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
Approve3MCIPRebate-2019Qtr2-4&2020Qtr1
Presenter:Agenda Item Type:
JeremyCarter
NewBusiness
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
Approve3MCIPrebatesintheamountof$79,753
3MRebatefor2019Qtr2-4intheamountof$53,197.85,theyhadsavingsof395.5KW
and6,980MCF.
3MRebatefor2020Qtr1intheamountof$26,5.68,theyhadasavingsof393.9KW,
noMCF.
BOARD ACTION REQUESTED:
Approve3MCIPRebate-2019Qtr2-4&2020Qtr1
Fiscal Impact:
No
Included in current budget: Budget Change:
Yes
No
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
Energy Reductions
Project #Project nameElectrical kWNatural Gas MBTUElectrical MBTU
20Room 3 Utility Reduction0.0715.5196.9
6720SF-01 & -02 renewal59.40.02233.2
191LT3 Mister Water Reduction0.0777.11.0
1935L SRU Cold Weather Mitigation Settings5.63.78.0
206Enterprise Particle Counter1.90.055.6
207459C Imball Tray Former Motor Usage Reduction11.20.048.7
208459C Compressed Air Reduction in Dispenser Bowls0.00.0376.2
209AA Tank LED Lighting2.50.043.5
212158C Rex Infeed Conveyor Optimization1.10.00.8
2133L Corona Treater Usage Reduction0.00.05.1
218High Frequency Battery Chargers6.90.0204.9
2278L Natural Gas Reduction by Oven Air Flow0.02454.30.0
230HPT Lighting: Zoning and Motion Sensors0.00.0192.3
231HPT HVAC: Conditioned Exhaust Air Reductions0.02793.3735.0
233HPT Vista: Resin Drying Control Logic0.00.031.2
2368L Mister Bar Low Volume Misters0.0623.80.8
253411S vacuum accumulator0.00.0251.7
262Machine shop lighting6.70.0198.7
263Exterior lighting8.30.0126.6
264Voyager power supplies266.00.06608.1
265Andon System removal25.90.0772.6
266.0
129.57367.6MBTU
$ 34,957.996980.243007MCF
$ 17,952.34718.7947799Therms
$ 52,910.33
$ 287.52
$ 53,197.85
Ave kW, Peak Rebate
3-phaseVoltsAmps% PowerPower FactorQtykWHours/YrDuty CyclekWhHoursMMBTU($270/kW)
Old Power Supply1.73205080848017.20.7132320.332200.25257,85480879.8
New Power Supply1.73205080848010.60.7124148.132200.25119,18337406.7
Savings172.3138,67243473.1$11,627.74
Ave kW, Peak Rebate
3-phaseVoltsAmps% PowerPower FactorQtykWHours/YrDuty CyclekWhHoursMMBTU($270/kW)
Old Power Supply1.73205080848017.20.7132320.39370.2575,03480256.0
New Power Supply1.73205080848010.60.711698.79370.2523,1212578.9
Savings221.651,91355177.1$14,958.93
393.9190,585$26,586.68
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
2019ReviewofConservationImprovementProgram(CIP)
Presenter:Agenda Item Type:
JeremyCarter
NewBusiness
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
Attachedisthe2019OverviewoftheConservationImprovementProgram(CIP).The
StateofMinnesota1.5%of
HUCfilesaCIPreportasanaggregatefilingwithallotherMNMRESmembers.
BOARD ACTION REQUESTED:
None
Fiscal Impact:
No
Included in current budget: Budget Change:
No
No
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
MN Conservation Improvement Program (Electric)
The State of Minnesota requires Municipal electric utilities to spend 1.5% of theirGross
Operating Revenue (GOR) on Conservation Improvement Programs (CIP) (Statute 216B.241).
(NGEA)added an additional Goal
of achieving annual energy savings of 1.5% of retail sales of electricity through conservation and
energy efficiency programs beginning in 2010 and continuing each year going forward.
Our 2019 savings goal is calculated based on the 3-year average energy sales for years 2015-
2017 and is equal to 4,257,969 kWh.
Our 2020 savings goal is calculated based on the 3-year average energy sales for years 2016-
2018 and is equal to 4,213,103 kWh.
Our 2019 CIP minimum spending requirements are based on the 3-year average GOR for years
2015-2017 and is $350,921.
Our 2020 CIP minimum spending requirements are based on the 3-year average GOR for years
2017-2019 and is $366,003.
Of the minimum CIP spending requirement, no more than 50% of that amount may be spent on
Demand Side Management programs.
.2% of Residential GOR must be devoted to low-income programs. (Approximately $30,000).
HUC collaborates with United Community Action (UCA) for our Low-Income Program.
Utilities may count infrastructure improvement energy savings and expenses for the final .5% of
the energy savings goal such as street lighting, distribution system improvements, transformers,
power factor correction, etc. (currently pretty vague as to what is allowed)
HUC files a CIP report as an aggregate filing with all other MN MRES members.
Our next CIP Filing Report is due by June 1, 2021.
HUC CIP Spending History and Budget
Estimated
CIP Spending Estimated CIP Estimated kWh % of Projected
Year % Energy
Requirement Spending Energy Savings GOR
Savings
2020 $366,003 $463,600 Est. 5,047,065 Est. 1.8% 1.8%
Year Actual CIP Actual Savings % of Actual % of Sales
2019 $380,798 $228,479 4,670,729 0.9% 1.6%
2018 $371,437 $371,437 4,430,161 1.5% 1.5%
2017 $391,764 $208,941 4,153,194 0.8% 1.2%
2016 $370,501 $271,701 3,272,132 1.1% 1.2%
2015 $365,770 $243,847 1,562,981 1.0% 0.5%
2014 $394,838 $236,903 3,178,768 0.9% 1.1%
2013 $376,198 $225,719 2,194,670 0.9% 0.8%
2012 $367,588 $220,553 4,751,780 0.9% 1.6%
2011 $382,850 $204,187 4,523,208 0.8% 1.5%
2010 $418,590 $251,154 4,917,584 0.9% 1.6%
04/08/20
MN Conservation Improvement Program (Gas)
The State of Minnesota requires Municipal gasutilities to spend .5% of theirGross Operating
Revenue (GOR) on Conservation Improvement Programs (CIP) (Statute 216B.241).
(NGEA)added an additional Goal
of achieving annual energy savings of 1.5% of retail sales of gas through conservation and
energy efficiency programs beginning in 2010 and continuing each year going forward.
Our 2019 savings goal is calculated based on the 3-year average energy sales for years 2015-
2017 and is equal to 22,626 MCF.
Our 2020 savings goal is calculated based on the 3-year average energy sales for years 2016-
2018 and is equal to 23,498 MCF.
Our 2019 CIP minimum spending requirements are based on the 3-year average GOR for years
2015-2017 and is $53,113.
Our 2020 CIP minimum spending requirements are based on the 3-year average GOR for years
2016-2018 and is $47,127.
.2% of Residential GOR must be devoted to low-income programs. (Approximately $7,944).
HUC collaborates with United Community Action (UCA) for our Low-Income Program.
HUC files a CIP report as an aggregate filing with all other MN MRES members.
Our next CIP Filing Report is due by June 1, 2021.
HUC CIP Spending History and Budget
Estimated
CIP Spending Estimated CIP Estimated MCF % of Projected
Year % Energy
Requirement Spending Energy Savings GOR
Savings
2020 $47,127 $253,803Est. 23,498Est. 1.5% 1.5%
Year Actual CIP Actual Savings % of Actual % of Sales
2019 $53,113 $138,095 9,743 1.3% .7%
2018 $50,182 $140,510 23,610 1.4% 1.5%
2017 $47,245 $103,940 18,441 1.1% 1.1%
2016 $72,500 $87,000 5,503 .6% .3%
2015 $60,908 $182,725 17,491 1.5% 1.1%
2014 $48,138 $125,161 23,803 1.3% 1.5%
2013 $67,955 $67,955 6,525 .5% .4%
2012 $74,087 $74,087 23,164 .5% 1.4%
2011 $72,603 $72,603 22,911 .5% 1.5%
2010 $68,418 $82,102 23,761 .6% 1.5%
04/08/20
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
ApproveAwardingtheBid(25/46.7MVATransformer)
Presenter:Agenda Item Type:
JeremyCarter
NewBusiness
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
OnMay27th,HUChadabidopeningtoreplacetheprevioustransformerthatwas
damagedattheplant2substation.4bidswerereceivedandreviewedbystaffandCE
Power.Basedonthereviewofthebidproposals,CEPower&Staffarerecommending
awardingthebidtoVirginiaTransformer.Pleaseseethebidtabulationsheetattached
forthebidresultsonthe25/46.7MVATransformer.
Thisreplacementtransformerwasnotpartoftheapproved5yearCIPbudget,butwas
identifiedasaseparateprojecttobecompletedoverthenexttwoyears.Staffestimated
thetransformerreplacementcostsat$850,000.Theactualbidamountbeforelosses
arefactoredinordiscountsis$786,606.
BOARD ACTION REQUESTED:
ApproveAwardingtheBidtoVirginiaTransformer
Fiscal Impact:
$786,600
Included in current budget: Budget Change:
No
No
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
Est.$1.4M
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
ApproveAwardingtheBid(GroundingTransformer)
Presenter:Agenda Item Type:
JeremyCarter
NewBusiness
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
OnMay27th,HUChadabidopeningtoreplacethepreviousgroundingtransformerthat
wasdamagedattheplant2substation.3bidswerereceivedandreviewedbystaffand
CEPower.Basedonthereviewofthebidproposals,CEPower&Staffare
recommendingawardingthebidtoVirginiaTransformer.Pleaseseethebidtabulation
sheetattachedforthebidresultsonthegroundingTransformer.
Thisreplacementgroundingtransformerwasnotpartoftheapproved5yearCIPbudget,
butwasidentifiedaspartofaseparateprojecttobecompletedoverthenexttwoyears.
Theactualbidamountbeforelossesarefactoredinordiscountsis$265,750.
BOARD ACTION REQUESTED:
ApproveAwardingtheBidtoVirginiaTransformer
Fiscal Impact:
$265,750
Included in current budget: Budget Change:
No
No
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
Est.$1.4M
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
Adopt COVID-19 Preparedness Plan
Presenter: Agenda Item Type:
Jeremy Carter
Time Requested (Minutes):
5
New Business
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
ƓķĻƩ Executive Order 20-74, ƩĻƌĻğƭĻķ ĬǤ Dƚǝ͵ źƒ ğƌǩ ƚƓ WǒƓĻ ЎͲ ĭƩźƷźĭğƌ ƭĻĭƷƚƩ ĬǒƭźƓĻƭƭĻƭ
źƓĭƌǒķźƓŭ ŭƚǝĻƩƓƒĻƓƷ ĻƓƷźƷźĻƭ ƌźƉĻ ĭźƷźĻƭ ğƩĻ ƓƚǞ ƩĻƨǒźƩĻķ Ʒƚ ğķƚƦƷ ğ /hL5ΏЊВ
tƩĻƦğƩĻķƓĻƭƭ tƌğƓ͵
.ĻŭźƓƓźƓŭ ƚƓ WǒƓĻ ЋВͲ ЋЉЋЉͲ ğƌƌ /ƩźƷźĭğƌ .ǒƭźƓĻƭƭĻƭ ƒǒƭƷ ŷğǝĻ ķĻǝĻƌƚƦĻķ ğƓķ źƒƦƌĻƒĻƓƷĻķ ğ
/hL5ΏЊВ tƩĻƦğƩĻķƓĻƭƭ tƌğƓ ğƭ ƭĻƷ ŅƚƩƷŷ źƓ ƦğƩğŭƩğƦŷ А͵Ļ ƚŅ Ʒŷźƭ 9ǣĻĭǒƷźǝĻ hƩķĻƩ͵
tƩĻǝźƚǒƭƌǤͲ ƚƓƌǤ ƓƚƓΏĭƩźƷźĭğƌ ĬǒƭźƓĻƭƭĻƭ ǞĻƩĻ ƩĻƨǒźƩĻķ Ʒƚ ŷğǝĻ ğ tƩĻƦğƩĻķƓĻƭƭ tƌğƓ ƦƩźƚƩ Ʒƚ
ƩĻƚƦĻƓźƓŭ͵
BOARD ACTION REQUESTED:
Adopt COVID-19 Preparedness Plan
Fiscal Impact: None
Included in current budget: Budget Change:
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
COVID-19 Preparedness Plan
June 2020
Hutchinson Utilities Commission is committed to providing a safe and healthy workplace for all our
employees. As we deal with this unprecedented global pandemic, this plan is to provide guidance to all
Hutchinson Utilities employees.
To ensure we have a safe and healthy workplace, Hutchinson Utilities has developed the following
Preparedness Plan in response to the COVID-19 pandemic. Our goal is to mitigate the potential for
transmission of COVID-19 in our workplaces. This requires full cooperation among workers and
management. Only through this cooperative effort, can we establish and maintain the safety and health
of our workers and workplaces.
Management and employees are responsible for implementing and complying with all aspects of this
Preparedness Plan. The Hutchinson Utilities managers have our full support in enforcing the provisions
of this plan.
Our workers are our most important assets. Hutchinson Utilities is serious about safety and health and
protecting its workers. Our Preparedness Plan follows Centers for Disease Control and Prevention (CDC)
and Minnesota Department of Health (MDH) guidelines and OSHA standards related to COVID-19 and
addresses:
Prompt identification and isolation of sick employees and employees exposed to sickness;
Reducing the spread of COVID-19 in the workplace;
Additional information; and
Communications
Stay Home if Feeling Ill
Many times, with the best of intentions, employees report to or stay at work even though they feel ill,
but employees should not stay at nor report to work if they feel ill due to the current circumstances. If
you feel ill, please inform your manager or designee immediately, leave immediately if you are at work,
and do not return to work unless and until you are no longer ill or a pandemic virus is unlikely.
Employees who report to work ill will be sent home in accordance with these health guidelines. We may
request appropriate information related to illnesses from any employee before reporting to work and
documentation from an ill employee before such employee may return to work.
Stay Home if COVID-19 Symptoms or Positive Test
If employees have any of the symptoms described below and/or have tested positive for COVID-19, you
must inform your manager or designee immediately, leave immediately if you are at work, and do not
return to work unless and until the guidelines below are met. Employees who are at or report to work
under these circumstances will be sent home in accordance with these health guidelines. We may
request appropriate information related to these items from any employee before reporting to work
and documentation from an ill employee before such employee may return to work.
It is critical that employees check for, leave work, and do not report to work while they are
experiencing any symptoms such as the following:
Fever (100.4 degrees Fahrenheit or higher)
Cough
Shortness of breath or difficulty breathing
Chills
Repeated shaking with chills
Muscle pain
Headache
Sore throat
New loss of taste or smell
If you have COVID-19 symptoms described above, but have not been tested, do not come to work
until:
You have had no fever for at least 72 hours (that is three full days of no fever without the use
medicine that reduces fevers); and
Other symptoms have improved (for example, your cough or shortness of breath have
improved); and
At least 7 days have passed since your symptoms first appeared; and
You have followed the guidance of your healthcare provider and local health department.
If you have had COVID-19 symptoms described above and have tested positive for COVID-19, do not
come to work until:
You no longer have a fever (without the use medicine that reduces fevers); and
Other symptoms have improved (for example, when your cough or shortness of breath have
improved); and
You received two negative tests in a row, 24 hours apart. Your doctor will follow CDC guidelines;
and
You have followed the guidance of your healthcare provider and local health department.
If you have not had COVID-19 symptoms described above but tested positive for COVID-19, do not
come to work until:
At least 7 days have passed since the date of your first positive COVID-19 diagnostic test; and
You have had no subsequent illness; and
You have remained asymptomatic; and
More than 3 days have passed since your discontinuation of isolation; and
You have followed the guidance of your healthcare provider and local health department.
If you develop any of the following emergency warning signs, as specified by the CDC, get medical
attention immediately:
Trouble breathing
Persistent pain or pressure in the chest
New confusion or inability to arouse
Bluish lips or face
If you are sick with COVID-19 or suspect you are infected with the virus that causes COVID-19, you
should contact your health care provider immediately and take the necessary steps to help prevent the
disease from spreading to people in your home, place of employment, and community, which includes
staying at home.
Stay Home if Exposed to COVID-19
Close Contact
If a household member or guest, an intimate partner, or someone you are providing care for has COVID-
19 symptoms, or if you have been in close contact (less than 6 feet) for a prolonged period of time with
a person with COVID-19 symptoms, you should:
Inform your supervisor or designee immediately
Leave work immediately if you are at work
Stay home until 14 days after last exposure and maintain social distance (at least 6 feet) from
others at all times
Self-monitor for symptoms
o Check temperature twice a day
o Watch for fever, cough, or shortness of breath
o Avoid contact with people at higher risk for severe illness (unless they live in the same
home and had same exposure)
o Follow CDC guidance if symptoms develop
Travel
If you traveled to a country with widespread sustained (ongoing) transmission of COVID-19 as
established by the CDC, or traveled on a cruise ship or riverboat:
Inform your supervisor or designee immediately
Leave work immediately if you are at work
Stay home until 14 days after your last exposure and maintain social distance (at least 6 feet)
from others at all times
Self-monitor for symptoms
o Check temperature twice a day
o Watch for fever, cough, or shortness of breath
o Avoid contact with people at higher risk for severe illness (unless they live in the same
home and had same exposure)
Follow CDC guidance if symptoms develop
If you traveled from any other country:
Inform your supervisor or designee for a determination of whether you should stay home, or
leave work if you are at work
Practice social distancing
o Maintain a distance of at least 6 feet from others
o Stay out of crowded places
Be alert for symptoms
o Watch for fever, cough, shortness of breath
o Take temperature if symptoms develop
Follow CDC guidance if symptoms develop
If you are planning on traveling:
Carefully consider whether travel is necessary
Inform your supervisor or designee
each country to which you will travel.
o Self-monitor for symptoms before starting travel
Check temperature twice a day
Watch for fever, cough, or shortness of breath
If you become sick after starting travel, promptly call a healthcare provider for advice as needed,
and inform your supervisor or designee.
If outside the United States, a U.S. consular office can help locate healthcare services. However,
U.S. embassies, consulates, and military facilities do not have the legal authority, capability, and
resources to evacuate or give medicines, vaccines, or medical care to private U.S. citizens
overseas.
Inability to be at Work
We provide paid sick time and other leave benefits to compensate eligible employees who are unable to
work under certain circumstances. You should refer to applicable personnel policies, labor contracts,
and notices related to such benefits.
Hutchinson Utilities may consider allowing certain employees in certain positions to work from home.
For more information about such arrangements, please contact your manager and refer to applicable
personnel policies and notices.
Reduce the Spread of COVID-19
Basic Hygiene
Wash your hands frequently with warm, soapy water for at least 20 seconds, but especially at the
beginning and end of their shift, after using equipment and/or using a HUC vehicle, prior to any
mealtimes, and after using the toilet. All visitors to the facility will be required to wash their hands or
use HUC provided hand sanitizer prior to or immediately upon entering the facility. Hand sanitizer with
at least 60% alcohol will be used if soap and water are not available.
HUC will provide alcohol-based hand sanitizers throughout the workplace and in common areas.
Cover your mouth and nose with a tissue when you cough or sneeze or use the inside of your elbow.
Throw used tissues in the trash and immediately wash hands with soap and water for at least 20
seconds. If soap and water are not available, use hand sanitizer containing at least 60% alcohol.
Avoid touching your eyes, nose, and mouth with unwashed hands.
Clean and Disinfect
Clean and disinfect frequently touched objects and surfaces such as workstations, keyboards,
telephones, handrails, doorknobs, city vehicles, or other work tools and equipment. Dirty surfaces can
be cleaned with soap and water prior to disinfection.
Cleaning sprays and wipes will also be provided to clean and disinfect frequently touched
objects and surfaces such as telephones and keyboards. You should clean these office surfaces
daily.
If an employee is diagnosed with COVID-19 and has recently been in the workplace, the Hutchinson
Utilities facility will be comprehensively cleaned and disinfected.
Social Distancing
Maintain a distance of at least 6 feet from other employees, patrons, customers, etc.
ble.
If necessary, clean and disinfect them before and after use.
If possible, avoid traveling with other employees within a utility vehicle. At a minimum, clean and
disinfect them before and after use.
Use telephone and video conferencing instead of face-to-face meetings as much as possible during this
outbreak.
Avoid people who are sick with the above-symptoms or known to have traveled internationally or in a
community in which COVID-19 is widespread.
Face Masks
You are encouraged to wear a cloth face cover while at work as a means of protecting others if you are
infected.
Do NOT use a facemask meant for a healthcare worker.
Continue to keep at least 6 feet away from others.
Further guidance on facemasks is available from the CDC here: https://www.cdc.gov/coronavirus/2019-
ncov/prevent-getting-sick/diy-cloth-face-coverings.html
Personal Protective Equipment
Guidance related to any PPE that should be worn by employees to minimize exposure to hazards that
cause serious workplace injuries and illnesses will be communicated to specific positions by supervisors.
Disposable gloves are available to employees.
Drop-off, Pick-up and Delivery Protections and Protocols
Limiting vendors, consultants, and delivery personnel from entering buildings, except in a rare occasion
where it is required. Upon doing so, vendors, consultants and delivery personnel will be required to
wash their hands or use HUC provided hand sanitizer prior to or immediately upon entering the facility.
Hand sanitizer with at least 60% alcohol will be used if soap and water are not available. HUC will also
centralize all deliveries to the inventory building where only 1 staff member will be coordinating
inventory and items for disbursement.
Other Measures
Additional prevention measures in System Control and Customer Service have been taken to reduce the
spread of COVID-19. System Control is continuing to limit access to authorized personnel only and
barriers at the front counters in Customer Service have now been put in place.
Employee Group-Specific Measures
More specific measures may be taken for specific employee groups based on their work, sites, and risk
of exposure to illness. We will be continually monitoring how to handle related workplace issues and will
update you accordingly. In addition, administration, managers and supervisors will communicate to you
any impacted operational issues related to your position.
Communications
This Preparedness Plan will be communicated to all workers. Additional communication and training if
needed will be ongoing.
Managers and supervisors are expected to monitor how effective the program has been implemented.
All management and workers are to take an active role and collaborate in carrying out the various
aspects of the plan, and update the protections, protocols, work-practices, and training as necessary.
This COVD-19 Preparedness Plan has been certified by the Hutchinson Utilities Commission and will be
posted throughout the workplace and made readily available to employees on June 25, 2020. It will be
updated as necessary.
Nothing in this communication establishes any precedent or practice. Hutchinson Utilities Commission
may change or eliminate these items, or portions thereof, at any time and without notice.
This plan supplements existing employment policies, rules, procedures, and regulations. All current
employment policies, rules, procedures, and regulations remain in full effect, except for instances where
this plan directly contradicts another current policy, rule, procedure, or regulation in which case this
plan supersedes existing policy, rule, procedure, or regulation. Therefore, employees are encouraged to
review all other such policies, rules, procedures, and regulations in conjunction with this plan.
Please contact Angie Radke in Human Resources at aradke@ci.hutchinson.mn.us, 320-234-0501, or in-
person with any questions or concerns.
Thank you for your cooperation.
Certified by: ________________________________
Don Martinez, HUC President Date
___________________________________ ________________________________
Robert Wendorff, HUC Secretary Date
Additional general guidance on COVID-19 is available here:
General
www.cdc.gov/coronavirus/2019-nCoV
www.health.state.mn.us/diseases/coronavirus
www.osha.gov
www.dli.mn.gov
Handwashing
www.cdc.gov/handwashing/when-how-handwashing.html
www.cdc.gov/handwashing
https://youtu.be/d914EnpU4Fo
Respiratory etiquette: Cover your cough or sneeze
www.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/prevention.html
www.health.state.mn.us/diseases/coronavirus/prevention.html
www.cdc.gov/healthywater/hygiene/etiquette/coughing_sneezing.html
Social distancing
www.cdc.gov/coronavirus/2019-ncov/community/guidance-business-response.html
www.health.state.mn.us/diseases/coronavirus/businesses.html
Housekeeping
www.cdc.gov/coronavirus/2019-ncov/community/disinfecting-building-facility.html
www.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/disinfecting-your-home.html
www.epa.gov/pesticide-registration/list-n-disinfectants-use-against-sars-cov-2
www.cdc.gov/coronavirus/2019-ncov/community/organizations/cleaning-disinfection.html
Employees exhibiting signs and symptoms of COVID-19
www.cdc.gov/coronavirus/2019-ncov/if-you-are-sick/steps-when-sick.html
www.health.state.mn.us/diseases/coronavirus/basics.html
Training
www.health.state.mn.us/diseases/coronavirus/about.pdf
www.cdc.gov/coronavirus/2019-ncov/community/guidance-small-business.html
www.osha.gov/Publications/OSHA3990.pdf
EMPLOYEE AFFIDAVIT OF RECEIPT ACKNOWLEDGEMENT
I, , acknowledge that I have received and read
(print employee name)
the Hutchinson Utilities Commission COVID-19 Preparedness Plan dated June 2020.
Employee Signature Date
Employee Copy
EMPLOYEE AFFIDAVIT OF RECEIPT ACKNOWLEDGEMENT
I, , acknowledge that I have received and read
(print employee name)
the Hutchinson Utilities Commission COVID-19 Preparedness Plan dated June 2020.
Employee Signature Date
Employer Copy