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09-30-2020 HUCCP HUTCHINSON UTILITIES COMMISSION AGENDA REGULAR MEETING September 30, 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. Disconnection of Residential Services by HUC ii. Disconnection of Commercial Services by HUC iii. After hours Reconnection Policy iv. Landlord Acknowledgement v. Inserts with Utility Bills vi. Identity Theft Red Flag Program vii. MN Government Data Practices Act & Public Records Request b. Approve Changes None 7. UNFINISHED BUSINESS 8. NEW BUSINESS a. Approval of RFP for Ground Mounted Ballasted Utility-Interactive Photovoltaic System b. Approval of Requisition #8539 to PE Services to prepare Written Transmission Integrity Management Plan (IMP) & Moderate Consequence Area (MCA) Assessment Process 9. ADJOURN MINUTES Regular Meeting Hutchinson Utilities Commission Wednesday, August 26, 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; 1. Conflict of Interest 2. Approve Consent Agenda a. Approve Minutes Correction to the Special Meeting Minutes; President Martinez called the meeting to order not Morrow. b. Ratify Payment of Bills Motion by Commissioner Hanson, second by Commissioner Wendorff to approve the Consent Agenda. Motion carried unanimously. 3. Approve Financial Statements GM Carter presented the Financial Statements. Electric Division net loss increased $56,625 over July 2019. GM Carter noted that there was no power cost adjustment for July leaving the total at $249,268 YTD. There was an error in the system control data which if caught before the bills were processed would have resulted in $62,205 being collected through the PCA for July. This amount will be added to the formula for determining the PCA for August. Natural Gas Division had a net loss of $63,041, which is a negative change of $82,819 from July of 2019. Conversations were held on continuing trends or effects COVID-19 has had in the divisions. Motion by Commissioner Morrow, second by Commissioner Cheney to approve the financial statements. Motion carried unanimously. 4. Open Forum 5. 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- Absent c. Human Resources - Brenda Ewing Absent 1 d.Legal Marc Sebora i. Nothing to Report e. General Manager Jeremy Carter i. Touched base with Dan on Capacitor Bank, originally thought to start this Fall, but now ground work may not start until Spring and will continue through Fall of next year. ii. Insurance Update iii. Projects going well - more maintenance than capital work is being done right now. iv. Continuing to review CDC and MN Dept. of Health on Covid-19 along with updating the HUC Preparedness Plan. 6. Policies a. Review Policies i. Hutchinson Utilities Commission Establishing a New Electric/Natural Gas Account ii. Deposit Requirement Residential iii. Deposit Requirement Commercial/Industrial iv. Terminating Electric/Natural Gas Service by Customer v. Errors in Billing vi. Payment of Your Bill vii. Automatic Bill Payment Plan viii. Budget Payment Plan ix. Minnesota Cold Weather Rule No changes recommended at this time. b. Approve Changes i. Definition of Your Bill ii. Explanation of Billing Procedure GM Carter presented changes that are needed to the two policies. Motion by Commissioner Cheney, second by Commissioner Hanson to approve the policy changes. Motion carried unanimously. 7. Unfinished Business a. None 8. New Business a. Approve Rate Adjustments for 2020 & 2021 GM Carter recapped conversations that were held last month on the rate adjustments for 2020 & 2021. HUC instituted the first 2-year rate track adjustments back on Oct 1, 2018 & Oct 1 2019 on the various customer classes. 2 At the direction, the second 2-year rate track adjustments are attached that follow the 6 & 9 year glide paths while keeping HUC revenue neutral. If approved, this information will be presented at the City Council meeting on Sept. 8. The City Council would then have 2 weeks to consider approval or will veto at the City Council meeting on Sept 22. A motion by Commissioner Morrow, second by Commissioner Cheney to Approve Rate Adjustments for 2020 & 2021. Motion carried unanimously. b. Approve Sale of Capacity to NextEra Energy Marketing GM Carter presented the Sale of Capacity to NextEra Energy Marketing. HUC has agreed to terms with NextEra Energy Marketing for the sale of 21MW of Zonal Resource Credits in the planning years 2025-2030 to NextEra Energy Marketing, LLC. The agreement terms are $3,000 per MW-month x 21MW = $63,000 per month. Conversations were held on the capacity contracts and generators with existing fleet. Mr. Sebora left the meeting at 3:32 pm. A motion by Commissioner Hanson, second by Commissioner Cheney to Approve the Sale of Capacity to NextEra Energy Marketing. Motion carried unanimously. c. Approve Rate Schedule for Electric Vehicle Chargers GM Carter presented the Rate Schedule for Electric Vehicle Chargers. HUC purchased an Electric Vehicle DC Fast Charger from Chargepoint, which typically will fully charge an EV in 30 minutes using 70kwh of energy and will have a range of 250 miles. HUC has worked with the City staff to find a location with public parking that would be close to an existing electric infrastructure along with easy access for customers, the location for this charger would be on the North side of nd 2 Ave NW. Conversations were held on using the existing Small General Rate (.09052/kwh) as the EV charger rate. A motion by Commissioner Hanson, second by Commissioner Morrow to approve and match the current Small General Rate (.09052/kwh) as the EV charger rate to be adjusted annually. Motion carried unanimously. 3 9.Adjourn There being no further business, a motion by Commissioner Cheney, second by Commissioner Wendorff to adjourn the meeting at 3:57p.m. Motion carried unanimously. __________________________ Robert Wendorff, Secretary ATTEST: _________________________ Don Martinez, President 4 HUTCHINSON UTILITIES COMMISSION COMBINED DIVISIONS FINANCIAL REPORT FOR AUGUST, 2020 August, 2020 MonthYear to Date 66.67% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Combined Division Customer Revenue$ 2,855,440$ 2,814,176 $ 41,265 1.5%$ 22,423,806$ 24,079,155$ (1,655,349)(6.9%)$ 35,819,11662.6% Sales for Resale$ 317,518$ 283,852$ 33,665 11.9%$ 1,685,895$ 1,850,711$ (164,816) (8.9%)$ 3,007,25056.1% NU Transportation$ 96,363$ 95,802$ 5610.6%$ 675,575 $ 671,245$ 4,3310.6%$ 898,64075.2% Electric Division Transfer$ 55,440$ 54,982$ 4580.8%$ 443,522 $ 439,855$ 3,6670.8%$ 665,28366.7% Other Revenues$ 32,452$ 54,271$ (21,819)(40.2%)$ 688,243 $ 364,929$ 323,31588.6%$ 466,207147.6% Interest Income$ 52,043$ 56,461$ (4,418) (7.8%)$ 343,863 $ 341,378$ 2,4850.7%$ 383,45689.7% TOTAL REVENUES$ 3,409,257$ 3,359,544 $ 49,713 1.5%$ 26,260,904$ 27,747,273$ (1,486,368)(5.4%)$ 41,239,95263.7% Salaries & Benefits$ 527,563$ 534,422$ (6,859) (1.28%)$ 4,400,987$ 4,050,013$ 350,9748.7%$ 6,946,88063.4% Purchased Commodities$ 1,495,014$ 1,572,611 $ (77,597)(4.9%)$ 12,504,848$ 13,673,013$ (1,168,165)(8.5%)$ 19,252,47765.0% Transmission$ 214,342$ 343,553$ (129,211)(37.6%)$ 1,607,953$ 1,955,035$ (347,082) (17.8%)$ 2,680,00060.0% Generator Fuel/Chem.$ 92,741$ 101,178$ (8,436) (8.3%)$ 432,220 $ 390,416$ 41,80410.7%$ 825,87552.3% Depreciation$ 327,083$ 327,083$ -0.0%$ 2,616,667$ 2,616,667$ - 0.0%$ 3,925,00066.7% Transfers (Elect./City)$ 266,480$ 188,434$ 78,046 41.4%$ 1,688,320$ 1,507,471$ 180,84812.0%$ 2,532,47566.7% Operating Expense$ 134,805$ 204,601$ (69,796)(34.1%)$ 1,508,659$ 1,648,527$ (139,869) (8.5%)$ 2,605,31357.9% Debt Interest$ 89,542$ 97,334$ (7,792) (8.0%)$ 716,338 $ 778,671$ (62,333)(8.0%)$ 1,074,50766.7% TOTAL EXPENSES$ 3,147,571$ 3,369,216 $ (221,645)(6.6%)$ 25,475,990$ 26,619,813$ (1,143,823)(4.3%)$ 39,842,52763.9% NET PROFIT/(LOSS)$ 261,685$ (9,672)$ 271,358(2,805.5%)$ 784,914 $ 1,127,460$ (342,546) (30.4%)$ 1,397,42556.2% Combined Divisions - Financial/Operating Ratios AugustAugustYTD YTD 2020HUC 20202019Change20202019ChangeBudgetTarget Gross Margin %34.3%29.2%5.1%32.2%32.2%0.0%34.6%26% - 28% Operating Income Per Revenue $ (%)8.1%-0.1%8.1%2.1%5.0%-3.0%4.6%1%-4% Net Income Per Revenue $ (%):7.7%-0.3%8.0%3.0%4.1%-1.1%3.4%0%-1% Notes/Graphs: HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION FINANCIAL REPORT FOR AUGUST, 2020 August, 2020 MonthYear to Date 66.67% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Electric Division Customer Revenue$ 2,436,630$ 2,449,614$ (12,984)(0.5%)$ 16,163,909$ 17,103,777$ (939,869) (5.5%)$ 25,627,44863.1% Sales for Resale$ 317,518$ 283,852 $ 33,66511.9%$ 1,685,895$ 1,850,711$ (164,816) (8.9%)$ 3,007,25056.1% Other Revenues$ 11,085$ 27,091$ (16,006)(59.1%)$ 453,169$ 146,905$ 306,264208.5%$ 179,499252.5% Interest Income$ 27,416$ 29,625$ (2,209) (7.5%)$ 183,084$ 182,224$ 8600.5%$ 208,45687.8% TOTAL REVENUES$ 2,792,648$ 2,790,182$ 2,4660.1%$ 18,486,056$ 19,283,617$ (797,561) (4.1%)$ 29,022,65363.7% Salaries & Benefits$ 402,498$ 399,937 $ 2,5610.6%$ 3,294,456$ 3,005,355$ 289,1019.6%$ 5,074,75964.9% Purchased Power$ 1,272,598$ 1,374,280$ (101,682)(7.4%)$ 8,967,756$ 9,711,734$ (743,978) (7.7%)$ 13,480,33266.5% Transmission$ 214,342$ 343,553 $ (129,211)(37.6%)$ 1,607,953$ 1,955,035$ (347,082) (17.8%)$ 2,680,00060.0% Generator Fuel/Chem.$ 92,741$ 101,178 $ (8,436) (8.3%)$ 432,220$ 390,416$ 41,80410.7%$ 825,87552.3% Depreciation$ 241,667$ 241,667 $ -0.0%$ 1,933,333$ 1,933,333$ -0.0%$ 2,900,00066.7% Transfers (Elect./City)$ 218,676$ 147,172 $ 71,50448.6%$ 1,305,884$ 1,177,375$ 128,50910.9%$ 1,958,82666.7% Operating Expense$ 101,519$ 145,248 $ (43,729)(30.1%)$ 996,228$ 1,156,313$ (160,084) (13.8%)$ 1,654,94360.2% Debt Interest$ 44,471$ 46,555$ (2,083) (4.5%)$ 355,771$ 372,438$ (16,667) (4.5%)$ 533,65766.7% TOTAL EXPENSES$ 2,588,512$ 2,799,588$ (211,076)(7.5%)$ 18,893,601$ 19,701,997$ (808,396) (4.1%)$ 29,108,39264.9% NET PROFIT/(LOSS)$ 204,136$ (9,406)$ 213,543 (2,270.3%)$ (407,545)$ (418,380)$ 10,835(2.6%)$ (85,739)475.3% August, 2020 MonthYear to Date 66.67% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Electric Division Residential5,670,0304,884,579 785,451 16.08%37,158,85434,555,845 2,603,009 7.53% 51,590,88972.0% All Electric173,876142,547 31,32921.98%1,771,0321,747,789 23,243 1.33% 2,545,49769.6% Small General1,653,9241,713,300 (59,376) (3.47%)12,147,78212,847,817 (700,035) (5.45%) 18,956,24864.1% Large General7,442,7407,462,700 (19,960) (0.27%)52,690,58054,642,770 (1,952,190) (3.57%) 79,933,58365.9% Industrial11,354,00011,657,000 (303,000)(2.60%)80,036,00080,536,000 (500,000) (0.62%) 129,279,66661.9% Total KWH Sold 26,294,570 25,860,126 434,444 1.68% 183,804,248 184,330,221 (525,973)(0.29%) 282,305,88365.1% Financial/Operating Ratios AugustAugustYTD YTD 2020HUC 20202019Change20202019ChangeBudgetTarget Gross Margin %29.3%23.5%5.7%24.9%24.6%0.2%28.7%24% - 28% Operating Income Per Revenue $ (%)7.7%-0.2%7.8%-3.6%-1.3%-2.3%0.8%0%-5% Net Income Per Revenue $ (%):7.3%-0.3%7.6%-2.2%-2.2%0.0%-0.3%0%-5% Customer Revenue per KWH:$0.0927$0.0947-$0.0021$0.0876$0.0924-$0.0048$0.0903$0.0903 Total Power Supply Exp. per KWH:$0.0741$0.0813-$0.0071$0.0731$0.0780-$0.0049$0.0728$0.0728 Notes/Graphs: Net Profit increased by $213,543 mostly due to decreased purchased power and transmission. Sales for Resale of $317,518 consisted of $73,268 in market sales, $98,000 in capacity sales to Rice Lake and $146,250 in capacity sales to AEP. August 2019 Sales for Resale of $283,852 consisted of $18,142 in market sales, $36,400 in monthly tolling fees from Transalta, $79,810 in Transalta energy sales, $13,500 in capacity sales to AEP, and $136,000 in capacity sales to SMMPA. August 2018 Sales for Resale of $301,970 consisted of $14,960 in market sales, $35,600 in Transalta tolling fees, $135,410 in Transalta energy sales, and $116,000 SMMPA capacity sales. Overall Purchased Power decreased by $101,682. MRES purchases increased by $16 and market purchases/MISO costs decreased by $101,698. August 2020 power cost adjustment was $.00803 bringing in an additional $214,798 for the month and $464,067 YTD. Last year's power cost adjustment for August 2019 generated $284,369 in additional revenue for the month and $1,434,372 YTD. HUTCHINSON UTILITIES COMMISSION GAS DIVISION FINANCIAL REPORT FOR AUGUST, 2020 August, 2020 MonthYear to Date 66.67% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Gas Division Customer Revenue$ 418,810$ 364,561$ 54,24914.9%$ 6,259,898$ 6,975,378$ (715,480)(10.3%)$ 10,191,66861.4% Transportation$ 96,363$ 95,802$ 5610.6%$ 675,575 $ 671,245 $ 4,3310.6%$ 898,64075.2% Electric Div. Transfer$ 55,440$ 54,982$ 4580.8%$ 443,522 $ 439,855 $ 3,6670.8%$ 665,28366.7% Other Revenues$ 21,367$ 27,180$ (5,813) (21.4%)$ 235,074 $ 218,023 $ 17,0517.8%$ 286,70882.0% Interest Income$ 24,628$ 26,836$ (2,209) (8.2%)$ 160,779 $ 159,154 $ 1,6251.0%$ 175,00091.9% TOTAL REVENUES$ 616,608$ 569,362$ 47,2468.3%$ 7,774,848$ 8,463,655$ (688,807)(8.1%)$ 12,217,29963.6% Salaries & Benefits$ 125,065$ 134,486$ (9,420) (7.0%)$ 1,106,531$ 1,044,658$ 61,8725.9%$ 1,872,12159.1% Purchased Gas$ 222,416$ 198,331$ 24,08512.1%$ 3,537,092$ 3,961,279$ (424,187)(10.7%)$ 5,772,14561.3% Operating Expense$ 33,286$ 59,353$ (26,067)(43.9%)$ 512,430 $ 492,215 $ 20,2164.1%$ 950,37053.9% Depreciation$ 85,417$ 85,417$ -0.0%$ 683,333 $ 683,333 $ - 0.0%$ 1,025,00066.7% Transfers (City)$ 47,804$ 41,262$ 6,54215.9%$ 382,436 $ 330,097 $ 52,33915.9%$ 573,64966.7% Debt Interest$ 45,071$ 50,779$ (5,708) 0.0%$ 360,567 $ 406,233 $ (45,667)(11.2%)$ 540,85066.7% TOTAL EXPENSES$ 559,059$ 569,628$ (10,569)(1.9%)$ 6,582,389$ 6,917,816$ (335,427)(4.8%)$ 10,734,13561.3% NET PROFIT/(LOSS)$ 57,549$ (266)$ 57,815(21,721.1%)$ 1,192,459$ 1,545,840$ (353,380)(22.9%)$ 1,483,16480.4% August, 2020 MonthYear to Date 66.67% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Gas Division Residential6,183,3226,349,264 (165,942)(2.61%)258,038,407297,656,818 (39,618,411) (13.31%) 422,479,00061.1% Commercial7,643,3429,178,233 (1,534,891)(16.72%)197,596,844227,631,195 (30,034,351) (13.19%) 331,731,00059.6% Industrial53,785,25953,735,205 50,0540.09%578,997,685570,813,914 8,183,7711.43% 803,079,00072.1% Total CF Sold 67,611,923 69,262,702 (1,650,779)(2.38%) 1,034,632,936 1,096,101,927 (61,468,991) (5.61%) 1,557,289,00066.4% Financial/Operating Ratios AugustAugustYTD YTD 2020HUC 20202019Change20202019ChangeBudgetTarget Gross Margin %58.7%59.0%-0.3%49.9%49.8%0.1%49.0%37%-42% Operating Income Per Revenue $ (%)9.9%0.5%9.4%15.8%20.0%-4.1%13.8%11%-16% Net Income Per Revenue $ (%):10.1%-0.1%10.1%16.2%19.1%-3.0%12.6%6%-11% Contracted Customer Rev. per CF:$0.0037$0.0035$0.0002$0.0036$0.0040-$0.0004$0.0040$0.0040 Customer Revenue per CF:$0.0133$0.0097$0.0035$0.0087$0.0086$0.0001$0.0089$0.0089 Total Power Supply Exp. per CF:$0.0035$0.0031$0.0004$0.0036$0.0037($0.0001)$0.0039$0.0039 Notes/Graphs: August 2020 net profit increased by $57,815 led by an increase in customer revenue along with a decrease in operating expenses. August 2020 fuel cost credit adjustment was $0.15399/MCF totalling $2,749 for the month and $535,929 YTD. August 2019 credits totalled $63,316 for the month and $693,478 YTD. HUTCHINSONUTILITIESCOMMISSION BALANCESHEET-CONSOLIDATED AUGUST 31, 2020 ElectricGasTotalTotal Net Change DivisionDivision20202019Total(YTD) Current Assets Cash 5,989,462.83 10,277,695.78 16,267,158.61 15,916,701.50 350,457.11 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 261,197.43 - 261,197.43 372,736.68 (111,539.25) 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 1,483,992.21 - 1,483,992.21 1,387,742.18 96,250.03 Bond Interest Payment 2012 - 1,496,887.52 1,496,887.52 1,477,629.18 19,258.34 Debt Service Reserve Funds 522,335.64 2,188,694.02 2,711,029.66 2,711,029.66 - Total Current Assets 12,701,211.11 1 5,988,402.93 28,689,614.04 2 8,069,419.81 620,194.23 Receivables Accounts (net of uncollectible allowances) 2,589,605.25 523,885.68 3,113,490.93 3,134,644.95 (21,154.02) Interest 57,982.32 57,982.32 115,964.64 47,264.58 68,700.06 Total Receivables 2,647,587.57 5 81,868.00 3,229,455.57 3 ,181,909.53 47,546.04 Other Assets 1,500,545.79 475,404.48 1,793,220.76 Inventory 1,975,950.27 182,729.51 (44,370.77) 34,484.51 188,325.35 Prepaid Expenses (9,886.26) (198,211.61) 113,420.67 - Sales Tax Receivable 113,420.67 56,626.93 56,793.74 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) 1,788,844.69 5 82,971.99 2,371,816.68 2 ,696,911.04 (325,094.36) Total Other Assets Total Current Assets 17,137,643.37 1 7,153,242.92 34,290,886.29 3 3,948,240.38 342,645.91 Capital Assets Land & Land Rights 690,368.40 3,899,918.60 4,590,287.00 4,590,287.00 - Depreciable Capital Assets 91,542,499.89 42,001,576.49 133,544,076.38 131,890,606.29 1,653,470.09 Accumulated Depreciation (59,833,715.62) (17,848,220.21) (77,681,935.83) (73,874,457.12) (3,807,478.71) Construction - Work in Progress 16,457,578.45 382,127.67 16,839,706.12 16,207,483.26 632,222.86 Total Net Capital Assets 48,856,731.12 2 8,435,402.55 77,292,133.67 7 8,813,919.43 (1,521,785.76) Total Assets 6 5,994,374.49 4 5,588,645.47 1 11,583,019.96 1 12,762,159.81 ( 1,179,139.85) HUTCHINSONUTILITIESCOMMISSION BALANCESHEET-CONSOLIDATED AUGUST 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 2,249,413.38 594,680.41 2,844,093.79 3,508,057.08 (663,963.29) Accrued Expenses Accrued Interest 133,414.08 135,212.52 268,626.60 292,001.58 (23,374.98) Accrued Payroll 140,727.42 43,084.86 183,812.28 112,909.80 70,902.48 Total Current Liabilities 3,168,554.88 2 ,413,586.11 5,582,140.99 6 ,093,576.78 (511,435.79) 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 577,132.56 974,443.31 1,551,575.87 1,770,641.15 (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 19,757,885.96 1 3,334,139.38 33,092,025.34 3 5,704,433.01 (2,612,407.67) Net Position Retained Earnings 43,067,933.65 29,840,919.98 72,908,853.63 70,964,150.02 1,944,703.61 Total Net Position 43,067,933.65 2 9,840,919.98 72,908,853.63 7 0,964,150.02 1,944,703.61 Total Liabilities and Net Position 65,994,374.49 4 5,588,645.47 111,583,019.96 1 12,762,159.81 (1,179,139.85) Hutchinson Utilities Commission Cash-Designations Report, Combined 8/31/2020 Change in Financial Annual Balance, Balance, Cash/Reserve InstitutionCurrent Interest RateInterestAugust 2020 July 2020 Position Savings, Checking, Investmentsvariesvariesvaries 28,689,614.04 28,292,381.68 397,232.36 Total Operating Funds 28,689,614.04 28,292,381.68 397,232.36 Combined Divisions - Total Funds 28,689,614.04 28,292,381.68 397,232.36 Restricted Funds: Debt Reserve RequirementsBond Covenants - sinking fund 2,980,879.73 2,716,337.53 264,542.20 Debt Reserve RequirementsBond Covenants -1 year Max. P & I 2,711,029.66 2,711,029.66 - Total Restricted Funds 5,691,909.39 5,427,367.19 264,542.20 Excess Reserves Less Restrictions, Combined 22,997,704.65 22,865,014.49 132,690.16 Designated Funds: Operating ReserveMin 60 days of 2020 Operating Bud. 5,981,005.00 5,981,005.00 - Rate Stabalization Funds 912,504.04 912,504.04 - 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 12,710,701.04 12,710,701.04 - Excess Reserves Less Restrictions & Designations, Combined 10,287,003.61 10,154,313.45 132,690.16 Financial/Operating Ratios YEYEYEYEYTDHUC 20162017201820192020Target Debt to Asset32.2%40.2%37.7%34.9%34.7%<50% Current Ratio3.063.363.935.115.07>2.0 RONA2.17%1.82%3.16%2.25%0.78%>0% Notes/Graphs: Change in Cash Balance (From 12/31/14 to 8/31/2020) Month End ElectricElec. ChangeNatural GasGas Change TotalTotal Change 8/31/2020 12,701,211 15,988,403 28,689,614 12/31/2019 12,124,142 577,070 13,837,040 2,151,363 25,961,181 2,728,433 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 8/31/2020 Change in Financial Annual Balance, Balance, Cash/Reserve InstitutionInterestAugust 2020 July 2020 Position Current Interest Rate Operating Funds: Savings, Checking, Investmentsvariesvariesvaries 28,689,614.04 28,292,381.68 397,232.36 Total HUC Operating Funds 28,689,614.04 28,292,381.68 397,232.36 Electric Division - Total Funds 12,701,211.11 12,440,216.84 260,994.27 Restricted Funds: Debt Restricted RequirementsBond Covenants - sinking fund 1,483,992.21 1,385,770.85 98,221.36 Debt Restricted RequirementsBond Covenants -1 year Max. P & I 522,335.64 522,335.64 - Total Restricted Funds 2,006,327.85 1,908,106.49 98,221.36 Excess Reserves Less Restrictions, Electric 10,694,883.26 10,532,110.35 162,772.91 Designated Funds: Operating ReserveMin 60 days of 2020 Operating Bud. 4,367,899.00 4,367,899.00 - Rate Stabalization Funds$400K-$1.2K 261,197.43 261,197.43 - 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 9,072,639.43 9,072,639.43 - Excess Reserves Less Restrictions & Designations, Electric 1,622,243.83 1,459,470.92 162,772.91 Financial/Operating Ratios YEYEYEYEYTDAPPA RatioHUC 201620172018201920205K-10K Cust.Target Debt to Asset Ratio (* w/Gen.)16.7%35.4%35.7%34.1%34.7%50.1%<50% Current Ratio3.574.363.635.264.712.43>2.0 RONA-0.4%-0.6%-0.3%-0.4%-0.7%NA>0% Notes/Graphs: Hutchinson Utilities Commission Cash-Designations Report, Gas 8/31/2020 Change in Financial Annual Balance, Balance, Cash/Reserve InstitutionCurrent Interest RateInterestAugust 2020 July 2020 Position Operating Funds: Savings, Checking, Investmentsvariesvariesvaries28,689,614.0428,292,381.68397,232.36 Total HUC Operating Funds 28,689,614.04 28,292,381.68 397,232.36 Gas Division - Total Funds 15,988,402.93 15,852,164.84 136,238.09 Restricted Funds: Debt Restricted RequirementsBond Covenants - sinking fund 1,496,887.52 1,330,566.68 166,320.84 Debt Restricted RequirementsBond Covenants -1 year Max. P & I 2,188,694.02 2,188,694.02 - Total Restricted Funds 3,685,581.54 3,519,260.70 166,320.84 Excess Reserves Less Restrictions, Gas 12,302,821.39 12,332,904.14 (30,082.75) 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 8,664,759.78 8,694,842.53 (30,082.75) Financial/Operating Ratios YEYEYEYEYTDHUC 20162017201820192020APGA RatioTarget Debt to Asset51.2%47.6%40.7%36.1%34.5%TBD<50% Current Ratio2.592.744.334.965.55TBD>2.0 RONA5.6%5.0%8.3%6.4%3.0%TBD>0% Notes/Graphs: HUTCHINSON UTILITIES COMMISSION Investment Report For the Month Ended August 31, 2020 InterestCurrentDate ofDate ofParCurrentPurchaseUnrealizedPremiumNext InstitutionDescriptionRateYTMPurchaseMaturityValueValueAmountGain/(Loss)(Discount)Call Date Wells FargoMoney Market0.010%0.010%NANA - 36,874.77 - - -N/A Wells FargoFHLMC0.320%0.320%07/20/202010/20/2022 305,000.00 305,244.00 305,000.00 244.00 -01/20/2021 Wells FargoCD's1.700%1.700%02/21/202002/22/2022 245,000.00 250,708.50 245,000.00 5,708.50 -N/A Wells FargoCD's1.300%1.300%03/31/202009/30/2021 245,000.00 248,150.70 245,000.00 3,150.70 -N/A Wells FargoCD's1.900%1.900%08/21/201908/23/2021 174,000.00 177,085.02 174,000.00 3,085.02 -N/A Wells FargoCD's2.500%2.500%04/02/201904/05/2021 245,000.00 248,547.60 245,000.00 3,547.60 -N/A Wells FargoCD's1.250%1.250%04/08/202004/08/2021 245,000.00 246,759.10 245,000.00 1,759.10 -N/A Wells FargoFHLMC0.325%0.325%08/04/202002/03/2023 467,000.00 466,500.31 467,011.22 (510.91) 11.2202/03/2021 Wells FargoCD's0.500%0.698%07/30/202007/30/2025 245,000.00 245,347.90 245,000.00 347.90 -01/30/2021 Wells FargoCD's2.000%2.000%08/29/202008/22/2022 200,000.00 205,928.00 200,000.00 5,928.00 -09/29/2020 Wells FargoCD's0.200%0.200%06/25/202006/23/2021 248,000.00 248,235.60 248,000.00 235.60 -N/A Wells FargoCD's0.200%0.200%06/25/202012/28/2020 74,000.00 74,031.82 74,000.00 31.82 -N/A Wells FargoCD's1.700%1.700%01/31/202005/03/2021 245,000.00 247,685.20 245,000.00 2,685.20 -N/A Wells FargoCD's1.750%1.750%01/29/202007/29/2021 245,000.00 248,699.50 245,000.00 3,699.50 -N/A Broker Total25.2% 3,183,000.00 3,249,798.02 3,183,011.22 29,912.03 11.22 Cetera Investment ServicesMoney Market0.100%0.100%N/AN/A - 265,142.08 - - -N/A Cetera Investment ServicesMunicipal Bonds2.300%1.715%12/11/201710/01/2020 100,000.00 100,171.00 101,595.00 (1,424.00) 1,595.00N/A Cetera Investment ServicesMunicipal Bonds2.875%2.121%04/29/201609/01/2021 250,000.00 255,815.00 259,467.50 (3,652.50) 9,467.50N/A Cetera Investment ServicesMunicipal Bonds3.751%2.399%04/29/201611/01/2021 250,000.00 255,980.00 267,330.00 (11,350.00) 17,330.00N/A Cetera Investment ServicesMunicipal Bonds3.139%2.190%12/11/201709/01/2021 300,000.00 305,619.00 310,116.00 (4,497.00) 10,116.00N/A Cetera Investment ServicesMunicipal Bonds3.436%3.436%12/20/201812/15/2021 50,000.00 48,995.00 45,155.00 3,840.00 (4,845.00)N/A Cetera Investment ServicesMunicipal Bonds2.655%2.208%12/11/201703/01/2022 300,000.00 308,616.00 305,314.92 3,301.08 5,314.92N/A Cetera Investment ServicesMunicipal Bonds3.000%3.118%12/20/201808/01/2022 50,000.00 51,808.00 50,377.67 1,430.33 377.67N/A Cetera Investment ServicesMunicipal Bonds3.633%3.116%12/20/201809/01/2022 250,000.00 261,892.50 257,217.48 4,675.02 7,217.48N/A Cetera Investment ServicesMunicipal Bonds3.240%3.240%11/17/201702/15/2023 80,000.00 77,974.40 69,633.48 8,340.92 (10,366.52)N/A Cetera Investment ServicesMunicipal Bonds3.650%3.004%12/20/201802/01/2023 250,000.00 261,615.00 256,165.00 5,450.00 6,165.00N/A Cetera Investment ServicesMunicipal Bonds3.075%3.236%12/20/201806/01/2023 50,000.00 52,965.00 49,746.15 3,218.85 (253.85)N/A Cetera Investment ServicesMunicipal Bonds2.500%3.181%12/20/201808/01/2023 35,000.00 36,329.30 34,320.05 2,009.25 (679.95)N/A Cetera Investment ServicesMunicipal Bonds3.400%3.148%12/20/201811/01/2023 125,000.00 131,086.25 126,376.25 4,710.00 1,376.25N/A Cetera Investment ServicesMunicipal Bonds3.400%3.148%12/20/201811/01/2023 65,000.00 68,103.75 65,715.65 2,388.10 715.65N/A Cetera Investment ServicesMunicipal Bonds5.290%2.724%04/18/201906/01/2023 260,000.00 286,158.60 291,059.96 (4,901.36) 31,059.96N/A Cetera Investment ServicesMunicipal Bonds2.854%3.173%12/20/201802/01/2024 100,000.00 105,039.00 99,605.96 5,433.04 (394.04)N/A Cetera Investment ServicesMunicipal Bonds2.977%3.246%12/20/201803/15/2024 250,000.00 267,725.00 248,743.99 18,981.01 (1,256.01)N/A Cetera Investment ServicesMunicipal Bonds1.940%1.821%01/13/202005/01/2024 65,000.00 68,321.50 65,570.70 2,750.80 570.70N/A Cetera Investment ServicesMunicipal Bonds2.528%1.918%01/13/202012/01/2024 100,000.00 104,879.00 102,999.53 1,879.47 2,999.53N/A Cetera Investment ServicesMunicipal Bonds3.922%3.429%12/20/201812/01/2024 204,000.00 227,531.40 208,181.10 19,350.30 4,181.10N/A Cetera Investment ServicesMunicipal Bonds5.742%3.658%04/11/201908/01/2024 430,000.00 400,141.80 464,344.41 (64,202.61) 34,344.41N/A Cetera Investment ServicesMunicipal Bonds4.400%3.221%04/11/201907/01/2025 500,000.00 535,820.00 539,101.11 (3,281.11) 39,101.1107/01/2023 Cetera Investment ServicesMunicipal Bonds5.640%3.007%04/18/201908/15/2025 205,000.00 183,167.50 169,737.95 13,429.55 (35,262.05)N/A Cetera Investment ServicesMunicipal Bonds3.743%2.740%04/18/201909/15/2025 215,000.00 243,502.55 228,334.53 15,168.02 13,334.53N/A Cetera Investment ServicesMunicipal Bonds3.379%1.934%08/19/201910/01/2025 310,000.00 340,804.70 339,739.18 1,065.52 29,739.18N/A Cetera Investment ServicesMunicipal Bonds5.600%1.186%07/28/202012/01/2025 45,000.00 52,711.65 55,250.55 (2,538.90) 10,250.55N/A Cetera Investment ServicesMunicipal Bonds4.250%3.258%04/11/201901/01/2026 500,000.00 550,375.00 529,769.03 20,605.97 29,769.03N/A Cetera Investment ServicesMunicipal Bonds6.690%3.356%04/18/201904/15/2026 60,000.00 52,514.40 47,545.20 4,969.20 (12,454.80)N/A Cetera Investment ServicesMunicipal Bonds5.900%1.451%07/28/202006/15/2026 75,000.00 92,079.00 93,741.75 (1,662.75) 18,741.75N/A Cetera Investment ServicesMunicipal Bonds0.000%1.415%08/13/202007/01/2026 100,000.00 86,070.00 92,037.00 (5,967.00) (7,963.00)N/A Cetera Investment ServicesMunicipal Bonds3.250%2.903%04/18/201908/01/2026 500,000.00 536,155.00 514,790.69 21,364.31 14,790.69N/A Cetera Investment ServicesMunicipal Bonds1.664%1.150%08/27/202009/01/2026 225,000.00 225,958.50 231,696.00 (5,737.50) 6,696.00N/A Cetera Investment ServicesMunicipal Bonds2.150%2.203%07/01/201912/01/2026 40,000.00 41,580.80 40,150.64 1,430.16 150.64N/A Cetera Investment ServicesMunicipal Bonds2.350%2.191%07/01/201912/01/2026 500,000.00 528,045.00 505,385.00 22,660.00 5,385.00N/A Cetera Investment ServicesMunicipal Bonds2.375%1.816%09/04/201912/01/2026 90,000.00 95,571.00 93,395.70 2,175.30 3,395.70N/A Cetera Investment ServicesMunicipal Bonds3.000%1.991%08/19/201902/01/2027 50,000.00 54,830.50 53,551.00 1,279.50 3,551.00N/A Cetera Investment ServicesMunicipal Bonds3.150%2.034%08/19/201903/15/2027 100,000.00 112,141.00 109,138.50 3,002.50 9,138.50N/A Cetera Investment ServicesMunicipal Bonds3.332%3.120%04/18/201904/15/2027 500,000.00 564,845.00 507,783.94 57,061.06 7,783.94N/A Cetera Investment ServicesMunicipal Bonds3.553%2.289%08/19/201905/01/2027 55,000.00 60,729.35 60,468.04 261.31 5,468.0405/01/2026 Cetera Investment ServicesMunicipal Bonds3.865%2.470%08/19/201905/01/2027 55,000.00 62,669.75 60,986.48 1,683.27 5,986.4805/01/2025 Cetera Investment ServicesMunicipal Bonds3.000%3.101%05/18/202009/01/2027 65,000.00 70,457.40 69,180.58 1,276.82 4,180.5809/01/2025 Cetera Investment ServicesMunicipal Bonds2.817%2.817%09/25/201910/01/2027 35,000.00 28,882.00 27,969.55 912.45 (7,030.45)05/01/2025 Cetera Investment ServicesMunicipal Bonds3.230%1.828%08/19/201905/15/2027 145,000.00 165,492.85 160,827.31 4,665.54 15,827.31N/A Cetera Investment ServicesMunicipal Bonds3.270%2.141%08/19/201903/15/2028 155,000.00 174,740.80 170,805.09 3,935.71 15,805.0909/15/2027 Cetera Investment ServicesMunicipal Bonds2.974%2.574%11/07/201904/01/2028 75,000.00 80,665.50 77,253.00 3,412.50 2,253.00N/A Cetera Investment ServicesMunicipal Bonds3.140%2.004%08/19/201908/01/2028 500,000.00 559,340.00 547,105.00 12,235.00 47,105.0008/01/2027 Cetera Investment ServicesMunicipal Bonds3.000%2.199%05/19/202008/15/2028 90,000.00 95,886.00 95,401.80 484.20 5,401.8008/15/2025 Cetera Investment ServicesMunicipal Bonds3.000%1.942%08/19/201906/01/2029 115,000.00 130,840.10 125,961.80 4,878.30 10,961.80N/A Broker Total74.8% 9,199,000.00 9,667,783.93 9,553,078.62 (150,436.77) 354,078.62 TOTAL INVESTMENTS100.0%$ 12,382,000.00$ 12,917,581.95$ 12,736,089.84$ (120,524.74)$ 354,089.84 PORTFOLIO BY PRODUCT TYPEMATURITY SCHEDULE 8/31/2020% of7/31/2020% ofMonthlyMaturityCurrent Value% Product TypeTotal ValueTotalTotal ValueTotalChangeLess than 1 year$1,893,231.6914.7% Money Market$302,016.852.3%$649,520.125.0%($347,503.27)1 - 2 years1,931,620.2015.0% CD's2,441,178.9418.9%2,442,676.5919.0%(1,497.65)2 - 3 years1,748,679.1113.5% Government Bonds771,744.316.0%305,094.552.4%466,649.763 - 4 years 1,040,417.308.1% Municipal Bonds9,402,641.8572.8%9,487,075.1973.6%(84,433.34)4 - 5 years1,296,745.8010.0% TOTAL$12,917,581.95100.0%$12,884,366.45100.0%$33,215.505+ years5,006,887.8538.8% TOTAL$12,917,581.95100.0% aƚƓĻǤ ağƩƉĻƷ/5γƭ υЏͲЉЉЉͲЉЉЉ͵ЉЉ Ћ͵ЌіЊБ͵Ві υЎͲЉЉЏͲБББ υЎͲЉЉЉͲЉЉЉ͵ЉЉ υЍͲЉЉЉͲЉЉЉ͵ЉЉ υЌͲЉЉЉͲЉЉЉ͵ЉЉ υЊͲВЌЊͲЏЋЉ υЊͲБВЌͲЋЌЋ υЋͲЉЉЉͲЉЉЉ͵ЉЉ υЊͲАЍБͲЏАВ υЊͲЋВЏͲАЍЏ υЊͲЉЍЉͲЍЊА υЊͲЉЉЉͲЉЉЉ͵ЉЉ aǒƓźĭźƦğƌ .ƚƓķƭ АЋ͵Бі DƚǝĻƩƓƒĻƓƷ .ƚƓķƭ υЉ͵ЉЉ \[Ļƭƭ ƷŷğƓ ЊЊ Ώ Ћ ǤĻğƩƭЋ Ώ Ќ ǤĻğƩƭЌ Ώ Ѝ ǤĻğƩƭЍ Ώ Ў ǤĻğƩƭЎњ ǤĻğƩƭ Џ͵Љі ǤĻğƩ ELECTRIC DIVISION Operating Revenue August 2020 CLASSAMOUNTKWH$/KWH Street Lights$0.336$0.05500 Electric Residential Service$588,162.455,670,030$0.10373 All Electric Residential Service$18,829.03173,876$0.10829 Electric Small General Service$177,246.751,653,924$0.10717 Electric Large General Service$713,540.477,442,740$0.09587 Electric Large Industrial Service$938,851.0211,354,000$0.08269 Total$2,436,630.05 26,294,576$0.09267 Power Adjustment$0.00803 Rate Without Power Adjustment$0.08464 Electric Division Year-to-Date 2020 $ Amount2019 $ Amount2020 KWH/102019 KWH/10 21,000,000 20,000,000 19,000,000 18,000,000 17,000,000 16,000,000 15,000,000 14,000,000 13,000,000 12,000,000 11,000,000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Street LightsResidentialAll Elec.Small Gen.Large Gen.LargeFor Resale Total Resid.Srv.Srv.Industrial NOTE: Sales for resale includes capacity sales, market sales and Transalta sales. NATURAL GAS DIVISION Operating Revenue AUGUST 2020 CLASSAMOUNTMCF$/MCF Residential$109,718.576,183$17.74520 Commercial$90,962.477,643$11.90141 Large Industrial$34,526.803,922$8.80337 Large Industrial Contracts$183,602.5349,863$3.68214 Total$418,810.3767,611$6.19441 Fuel Adjustment-$0.15000 Rate Without Fuel Adjustment$6.34441 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. Disconnection of Residential Services by HUC ii. Disconnection of Commercial Services by HUC iii. After Hours Reconnection Policy iv. Landlord Acknowledgement v. Inserts with Utility Bills vi. Identity Theft Red Flag Program vii. MN Government Data Practices Act & Public Records Request BOARD ACTION REQUESTED: None Fiscal Impact: Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: Disconnection of Residential Services by HUC 1. Residential utility service shall be disconnected for any of the following reasons: Failure to pay by the deadline on a delinquent account or failure to comply with the terms of the budget payment plan. Failure to contact HUC to gain protection from disconnection under the Cold Weather Rule. Failure to maintain the payment agreement established under the Cold Weather Rule. Failure to comply with deposit requirement. Failure to pay for merchandise or charges for non-utility service billed by HUC. Payment of bill with a dishonored check. Failure to provide authorized utility personnel access to utility equipment. HUC shall disconnect residential utility service, without notice, where service has HUC shall disconnect residential utility service, without notice, where it has reasonable evidence that utility service is being obtained by potentially unsafe devices or potentially unsafe methods that stop or interfere with the proper metering of the utility service. HUC may disconnect residential utility service, without notice, where a dangerous condition exists for as long as the condition exists. If an account owner or property owner does not notify us, within three (3) business days following disconnection of service for non-payment, a final bill will be processed and the account will be closed. 2. HUC must have a Landlord Agreement on file acknowledging that landlord/owner will be responsible for all utility charges after the read-out date requested by a tenant. Failure of the landlord/owner to execute this form will lead to a shut off of services on the read-out date requested from tenant. 3. For all items mentioned in number 1 and 2 above, a disconnect/reconnect fee shall be applied. The disconnect/reconnect fee is as follows: A $40 trip charge to disconnect. A $40 trip charge to reconnect, payment shall be made with cash, money order or credit card during regular business hours. After hours reconnection will follow the After Hours Reconnection Policy. 4. In the event that the customer pays after the deadline given on the disconnect letter, and the payment is processed before physical disconnection, a $40 Removal from Disconnect List Fee will be applied to their account. 5. If a realtor/bank requests to have service reconnected for one day in order to perform an inspection, a $40 trip charge to reconnect and a $40 disconnect charge will be applied. 6. In the event of unauthorized use of, or tampering with the equipment of HUC, a law enforcement agency will be notified. HUC reserves the right to charge the customer for the cost of repairs to the equipment of HUC. 7. A dishonored payment will be assessed a $30 processing fee. 8. A dishonored payment to avoid disconnection, or to get reconnected, will be assessed a $30 processing fee; plus: A $40 trip charge to deliver a door hanger, giving customer 24 hours to make payment good with cash, money order or credit card. 9. HUC is not required to furnish residential service under conditions requiring operation in parallel with Backup such operation is hazardous or may interfere with its own operations or service to other customers or operation as a condition or rendering service under such circumstances. FAILURE TO RESPOND TO THE DISCONNECT NOTICE SET FORTH ON THE BILL OR FAILURE TO PAY FOR SERVICES RENDERED BY HUC MAY RESULT IN THE DISCONNECTION OF SERVICES TO THE PROPERTY WITHOUT ANY ADDITIONAL FOR SERVICES RENDERED AND TO ADVISE HUC OF ANY CHANGE IN ADDRESS. NEITHER HUC NOR THE CITY OF HUTCHINSON, NOR ANY OF THE AGENTS, EMPLOYEES OR REPRESENTATIVES OF THE CITY OF HUTCHINSON OR HUC, WILL BE RESPONSIBLE FOR ANY DAMAGES OR CLAIMS INCURRED AS A RESULT OF THE DISCONNECTION OF SERVICES. Residential utility service may not be disconnected or refused for any of the following reasons: Delinquency in payment for services by a previous occupant of the premises to be served. Failure to pay for a different rate classification of utility service. Failure to pay the account of another customer as guarantor thereof. Failure to pay charges arising from any underbilling occurring more than 1 year prior to the current billing and due to any misapplication of rates or faulty metering. If a customer is on the Budget Payment Plan and has a credit balance on account. Disconnection of Commercial Services by HUC 1. Commercial utility service shall be disconnected for any of the following reasons: Failure to pay by the deadline on a delinquent account. Failure to comply with deposit requirement. Failure to pay for merchandise or charges for non-utility service billed by HUC. Payment of bill with a dishonored check. Failure to provide authorized HUC personnel access to utility equipment. HUC shall disconnect commercial utility service, without notice, where service has HUC shall disconnect commercial utility service, without notice, where it has reasonable evidence that utility service is being obtained by potentially unsafe devices or potentially unsafe methods that stop or interfere with the proper metering of the utility service. HUC may disconnect commercial utility service, without notice, where a dangerous condition exists for as long as the condition exists. 2. HUC must have a Landlord Agreement on file acknowledging that landlord/owner will be responsible for all utility charges after the read-out date requested by a tenant. Failure of the landlord/owner to execute this form will lead to a shut off of services on the read-out date requested from tenant. 3. For all items mentioned in number 1 and 2 above, a disconnect/reconnect fee shall be applied. The disconnect/reconnect fee is as follows: A $40 trip charge to disconnect. A $40 trip charge to reconnect, payment shall be made with cash, money order or credit card during regular business hours. After hours reconnection will follow the After Hours Reconnection Policy. 4. In the event that the customer pays after the deadline given on the disconnect letter, and the payment is processed before physical disconnection, a $40 Removal from Disconnect List Fee will be applied to their account. 5. If a realtor/bank requests to have service reconnected for one day in order to perform an inspection, a $40 trip charge to reconnect and a $40 disconnect charge will be applied. 6. In the event of unauthorized use of, or tampering with the equipment of HUC, a law enforcement agency will be notified. HUC reserves the right to charge the customer for the cost of repairs to the equipment of HUC. 7. A dishonored payment will be assessed a $30 processing fee. 8. A dishonored payment made to avoid disconnection, or to get reconnected, will be assessed a $30 processing fee; plus: A $40 trip charge to deliver a door hanger, giving customer 24 hours to make payment good with cash, money order or credit card. 9. HUC is not required to furnish commercial service under conditions requiring operation in parallel with Backup gen such operation is hazardous or may interfere with its own operations or service to other customers or operation as a condition or rendering service under such circumstances. FAILURE TO RESPOND TO THE DISCONNECT NOTICE SET FORTH ON THE BILL OR FAILURE TO PAY FOR SERVICES RENDERED BY HUC MAY RESULT IN THE DISCONNECTION OF SERVICES TO THE PROPERTY WITHOUT ANY ADDITIONAL TO PAY FOR SERVICES RENDERED AND TO ADVISE HUC OF ANY CHANGE IN ADDRESS. NEITHER HUC NOR THE CITY OF HUTCHINSON, NOR ANY OF THE AGENTS, EMPLOYEES OR REPRESENTATIVES OF THE CITY OF HUTCHINSON OR HUC, WILL BE RESPONSIBLE FOR ANY DAMAGES OR CLAIMS INCURRED AS A RESULT OF THE DISCONNECTION OF SERVICES. Commercial utility service may not be disconnected or refused for any of the following reasons: Delinquency in payment for services by a previous occupant of the premises to be served. Failure to pay for a different rate classification of utility service. Failure to pay the account of another customer as guarantor thereof. Failure to pay charges arising from any underbilling occurring more than 1 year prior to the current billing and due to any misapplication of rates or faulty metering. After Hours Reconnection Policy No after hours reconnections will be done from 9:00 p.m. to 7:30 a.m. After hours reconnection fees: A $150 Reconnection Fee will be charged for any reconnection that is done: From 4:00 p.m. to 9:00 p.m. on Monday through Friday From 7:30 a.m. to 9:00 p.m. on Saturdays A $200 Reconnection Fee will be charged for any reconnection that is done: From 7:30 a.m. to 9:00 p.m. on Sundays or Holidays Payments must be made prior to reconnecting utilities. Office hours are 7:30 a.m. to 4:00 p.m. Monday through Friday, excluding holidays. After hour payments can only be made with credit card, debit card or electronic check. Holidays include th Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, Christmas Eve Day, and Christmas Day. Landlord Acknowledgement A signed Landlord Acknowledgement provides the following: Confirmation and documentation of the landlord/owner. Request of HUC to provide utility service to tenants. The understanding that the tenant will be responsible for all utility costs between the date service is required by the tenant and the date the tenant requests read- out of services. The landlord/owner agrees to be responsible for and to pay all utility charges from the read-out date given by the tenant until services are established with a new tenant. The understanding that failure to pay these charges could result in disconnection of electric service. HUC is not responsible for any damages alleged to be caused by service disconnection. Disconnection/reconnection fees apply. The landlord/owner has the option to contact HUC to confirm that the utility service The landlord /owner can request the disconnection of services as long as the apply. Inserts with Utility Bills Generally, only material which applies directly to HUC business may be inserted into monthly utility bill mailings. HUC may approve the inclusion of other items, as appropriate. Identity Theft It shall be the policy of HUC to establish an identity theft prevention program, also known HUC has an identity theft Fair and Accurate Credit Transactions Act of 2003. Internal procedures have been established whereby employees of HUC have been trained on how to recognize and what procedures to follow if the employee suspects an identity theft is taking place. Implementation of the Red Flag Program is the responsibility of the Account Supervisor. Administration and maintenance of the Red Flag Program is the responsibility of the Financial Manager. Minnesota Government Data Practices Act and Public Records Request HUC is in compliance with Minnesota Government Data Practices Act and Public Records Request. Forms are available at the office of HUC. Business information is availabl Forms are available at the office of HUC. HUTCHINSON UTILITIES COMMISSION Board Action Form Agenda Item: ApproveRFPforGroundMountedBallestedUtilityInteractivePhotovoltaicsystem Presenter:Agenda Item Type: Jeremy NewBusiness Time Requested (Minutes): 5 Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: includingallnecessaryequipment,materialsanddesign,manufacturing,andinstallation servicesfortheinstallationofaGroundMountedBallastedutility-interactivesolar photovoltaicsystem.Thesystemshallfilltheallowablebuild-ableareaoftheproperty andbeabletoproduceaminimumof1,100,000kWh/ACannually.Thecontractor shouldpreparesystemsummarydetailingapplicableequipment/sizeandpredicted systemenergyproduction(kWh). ThesystemwouldbelocatedintheindustrialparkinthelotjustEastofourPlant2 property. BOARD ACTION REQUESTED: Approval Fiscal Impact: Budgetfor2021 Included in current budget: Budget Change: No PROJECT SECTION: Total Project Cost: Remaining Cost: 1105 HUTCHINSON UTILITIES SOLAR SITE 235 · INDUSTRIAL BLVD HUC GAS PIPELINE 6 1106 250 PARCEL #1 1106 HUTCHINSON UTILITIES PROPERTY 0 1105 Request for Proposal Hutchinson Utilities Commission (HUC) is soliciting proposals from a qualified contractor to design, fabricate, deliver, and install a Ground Mounted Ballasted utility-interactive solar photovoltaic system. Provide a company profile that includes: 1) Years the company has been in business, 2) Projects completed in the last 3 years similar in scope and size to the proposed project, 3) Three (3) project references with direct contract information, and 4) Identify the project team that will complete the scope of work. Ground Mounted Ballasted Utility-Interactive Photovoltaic System 1. PROJECT IDENTIFICATION 1.1. Project: Ground Mounted Ballasted utility-interactive solar photovoltaic system 1.2. Location: Hutchinson Minnesota (Map of location attached) 1.3. HUC contact: Dave Hunstad Electric Transmission/Distribution Manager Office: 320-234-0508 Email: dhunstad@ci.hutchinson.mn.us 2. BACKGROUND 2.1. Objective. Contractor shall provide a direct purchase necessary equipment, materials and design, manufacturing, and installation services for the installation of a Ground Mounted Ballasted utility-interactive solar photovoltaic system. The system shall fill the allowable buildable area of the property and be able to produce a minimum of 1,100,000 kWh/AC annually. The contractor should prepare system summary detailing applicable equipment/size and predicted system energy production (kWh). 2.2. Scope. The contractor shall perform all professional services as necessary to provide Hutchinson Utilities Commission (HUC) with a complete design package including the requirements outlined in this Statement of Work. The contractor shall install the project such that it is operational and compliant with all applicable standards, building codes, UTILITY interconnection requirements, and STATE requirements. The contractor shall include specifications, calculations and drawings in the design package, and turn it over to HUC. After approval by HUC of the final design package, the contractor shall provide all necessary construction to successfully complete the photovoltaic system installation. 2.2.1. Design Guidelines for Ground Mounted Ballasted utility-interactive solar photovoltaic system. . Design Guidelines for Ground-Mounted PV. The contractor shall develop a design for a new photovoltaic system at 250 Hackbarth St SE Hutchinson MN 55350. See attached drawings. Њ It is the responsibility of the contractor to assess site topography and geotechnical attributes to estimate costs related to project installation. Mounting system shall be ballasted on the surface without ground penetration. Mounting system design needs to meet applicable local building code requirements with respect to snow, wind, and earthquake factors. conditions. Ground cover and vegetation management (Pollinator friendly) shall be included in the proposal. Storm water management and erosion control management plan shall be included in the proposal. orientation or azimuth shall be within 20-30 degrees of due south. Chain link fencing shall be provided and installed to surround the array. Gate shall be included in the proposal. All lines interconnecting PV arrays to point of interconnection shall be underground. 2.2.2. Performance Criteria. The following performance criteria shall be met for all arrays: Power provided shall be either 208V, 480V or 13.8 kV three phase compatible with the onsite distribution system. Proposal shall provide estimated energy delivery for each array, for each month of the year and total for the year at the delivered voltage (208V, 480V or 13.8 kV). The estimated annual energy delivery for all arrays shall be a minimum of 1,100,000 kWhAC/year at point of interconnection (POI). The STC-rated power value will be entered into PVWatts (http://pvwatts.nrel.gov/) using the nearest weather file to determine estimated energy delivery in kWh AC. A default value for the system losses of 14% shall be used. PV array shall mean one or more PV modules having that same orientation and on the same maximum power point tracking (MPPT) system. Every array with differing orientation shall have a separate MPPT system. All PV hardware components shall be either stainless steel or aluminum. PV structural components shall be corrosion resistant (galvanized steel, stainless steel, composites, or aluminum). The project, including supports and power conductors, shall not interfere with water drainage Ͳ existing electrical infrastructure and planned areas for future installation of equipment shown on drawings. 2.2.3. Production Metering. The project shall have: At least one production meter at POI. 2.2.4. Construction. Perform all construction necessary for the successful installation of the system based upon the design generated from 2.2.1., 2.2.2., and 2.2.3. Ћ 2.3.Technical Requirements and Reference Materials 2.3.1. Code Compliance. Installation and equipment shall comply with applicable building, mechanical, fire, seismic, structural and electrical codes. Only products that are listed, tested, identified, or labeled by UL, FM, ETL, or another Nationally Recognized Testing Laboratory shall be used as components in the project. Non-listed products are only permitted for use as project components when a comparable useable listed component does not exist. Non-listed products proposed for use as components must be identified as such in all submittals. The contractor shall use project components that are or are made of materials that are recyclable, contain recycled materials, and that are EPA or Energy Star rated if they are available on the market. The publications listed below form a part of this document and are hereby incorporated by reference: National Electrical Code (NEC) UL 1703 Flat Plate PV Modules and Panels UL 1741 Standard for Static Inverters and Charge Controllers for Use in Photovoltaic Power Systems FM Approved Fire Protection Tests for Solar Component Products IEC 62446 Grid Connected Photovoltaic Systems- Minimum Requirements for System Documentation, Commissioning Tests, and Inspections Other technical codes that shall apply include: ASME PTC 50 (solar PV performance) ANSI Z21.83 (solar PV performance and safety) NFPA 853 (solar PV systems near buildings) IEEE 1547 (interconnections) ASCE/ SEI-7 American Society of Civil Engineers NRCA National Roofing Contractors Association 2.4. Roles and Responsibilities. 2.4.1. Contractor. The contractor is required to provide: Design concepts Construction documents and engineering calculations that are signed and sealed by a licensed architect or engineer Submittals for materials and products Construction materials, equipment and labor Design and construction supervision / contract management Quality control plan (QCP) Safety plan Inspections and tests (per QCP) Manuals (design calculations, operation/maintenance, shop drawing, etc.) Commissioning of project Ќ Mentoring and training staff for operation and maintenance Web-based monitoring system for 10 years 2.4.2. Hutchinson Utilities Commission will: Review for approval design submittals and QCP Witness inspections and test witnesses to verify attainment of performance requirements Make progress payments for design / construction as agreed 3. PROPOSAL CONCEPT DRAWINGS AND SPECIFICATIONS SUBMISSIONS 3.1. Concept Drawings. The contractor shall provide HUC with concept drawings with the proposal. The drawings must indicate the proposed location of the PV array(s) and access points along with a one-line electrical diagram showing inverters, transformers, meters, and interconnection locations. All drawings shall be submitted with dimensions shown in English units. 3.2. Concept Information. The proposal shall include major equipment information, proposed installation/interconnection information, applicable incentive information, and performance characteristics of the system. Identify an appropriate location for the solar PV inverter equipment and its related components and environmental control systems that will meet the following criteria: Ease of maintenance and monitoring Efficient operation Low operating losses Secured location and hardware Compatibility with existing facilities Avoidance of flood-prone areas Visual harmony ion shall include: Equipment Information: System description Layout of installation Selection of key equipment and layout of equipment Performance of equipment components, and subsystems Specifications for equipment procurement and installation All engineering associated with structural and mounting details Controls, monitors, and instrumentation Operation and maintenance service plan Installation Interconnection Information: Solar electric array orientation (degrees) Solar electric module tilt (degrees) Electrical grid interconnection requirements Ѝ Integration of solar PV system with other power sources System type and mode of operation (utility interactive) Performance Characteristics Shading calculation documentation Total system output Estimated kWh/month per array (shown over a 12 month period) Warranties and guarantees Applicable Incentives Identify all applicable incentives Interconnection Agreement Provide confirmation that the PV systems will be designed to comply with applicable UTILITY interconnection requirements. 4. DESIGN SERVICES Solar PV system shall be designed and engineered to maximize the solar energy resources, installation site, available solar resources, existing site conditions, proposed future site improvements, and other relevant factors. Design Services for this project shall require a schematic design submission, a design development submission, a check set submission and a construction document submission. A final set of as-built drawings shall also be provided to HUC. These submissions shall be delivered to HUC based on the project schedule submitted and approved by HUC. The design package shall include the following details (4.1-4.6). 4.1. Timeline/Project Schedule. Site visit can be scheduled in person or virtual any time th prior to RFP due date. will be due 10:00 AM November 5 2020. Project th completion and commissioning no later than October 6 2021. 4.2. Post Award Conference. After receipt of the contract award. The meeting will be attended by HUC team members At a minimum, the representative of any subcontractor performing over 25% of the work must attend. The meeting will be held at the project location. The purpose of the meeting will be to discuss schedule. A walk-through of the site will occur at the end of the meeting. 4.3. Specifications. A full set of specifications shall not be required for this project. However, specifications that express all information and demonstrate sufficient detail so as to direct the construction work outlined in this Statement of Work shall be required. The specifications package shall be coherent enough that any contractor not familiar with the Ў project would be able to construct the project design. The specifications shall include all equipment information, proposed installation and interconnection information, and performance characteristics of the system. 4.3.1. All drawings, estimates, calculations, and specifications shall be in English units. 4.4. Construction Drawings 4.4.1. Each drawing shall indicate project title, project number, array identification and location, A/E firm, A/E's address and/or phone number, contract number, drawing title, drawing type, drawing number, and key plan. A cover sheet shall be provided and shall include a list of the drawings, legend, vicinity map, and location map in addition to all items required for each drawing. Each A/E submission shall be clearly dated and labeled (e.g. 75% Design Development Submission, 100% Check Set Submission, Construction Document Submission, As-Built Drawings, etc.). Each drawing sheet submitted shall include a graphic scale in the lower right-hand portion of the sheet. The final set shall be stamped by a registered engineer and/or registered architect for the state in which the building/carport is located. At a minimum, the following drawings are required: Site plan including utility locations and connections shall show staging and phasing requirements. Electrical plans including single line diagram and utility interconnection. Electrical details.. Array support and mounting details. Any drawings that may be required to install a complete project. 4.4.2. The contract documents shall sufficiently define the Statement of Work and shall stand on their own. 4.5. Calculations. The contractor will provide the following calculations. 4.5.1. System Electrical Calculations. Provide with design development and again with 100% check set. PVWatts calculation System energy production calculation showing estimated monthly and yearly energy output for each array Energy value and project cash flow 4.6. Registration Seals. Each final working drawing and each submitted specification and calculation document shall be signed by, bear the seal of, and show the state certificate number of the architect and/or engineer who prepared the document and / or is responsible for its preparation. 5. DESIGN SUBMISSIONS Џ Awarded contractor will secure from governing agencies and the utility company all required rights, permits, approvals, and interconnection agreements at no additional cost to HUC. The awarded Contractor will complete and submit in a timely manner all documentation required to qualify for available rebates and incentives. 5.1. Design Reviews. For each design / drawing submissions, HUC reserves the right to make comments and request changes after the receipt of the submission. Reviews will be made by HUC staff. As part of its review, HUC may offer submission reviews to local code officials. HUC shall provide review comments within fourteen (14) calendar days of receipt of the 75% Design Development Submission and the 100% Check Set Submission. 5.2. Purpose. HUC will review the contractor design submissions to verify adherence to contract requirements. Design reviews by HUC are not to be interpreted as resulting in an approval of the contractor's apparent progress toward meeting contract requirements but are intended to discover any information that can be brought to the contractor's attention that might prevent errors, misdirection, or rework later in the project. The contractor shall remain completely responsible for designing, constructing, operating and maintaining the project in accordance with the requirements of this Statement of Work. 5.3. Resolution of Comments. The contractor shall respond to all design review comments in writing, indicating one of the following: (1) adoption and action taken, (2) adoption with modifications and action taken, (3) alternative resolution and action taken, or (4) rejection. In cases other than unqualified adoption, the contractor shall provide a statement as to why the reviewer's comment is inappropriate. If the contractor believes that any HUC design comments or requested changes will result in a change in the contract cost, they shall notify HUC within seven calendar days of receiving the comment(s) and provide a detailed cost estimate of anticipated contract modifications. Rejection items shall not go forward to the construction phase until adequate resolution to the rejected item has been approved by HUC. Design review comments shall not relieve the contractor from compliance with terms and conditions of this contract. The contractor's comment resolution shall be transmitted to HUC within seven (7) calendar days of comment receipt and incorporate discussions from the scheduled design comment review meetings. 6. UTILITY INTERCONNECTION AGREEMENT 6.1. The contractor shall coordinate with HUC to ensure that the project satisfies all HUC criteria for interconnection of the project to the HUC electric distribution system. This includes coordinating all negotiations, meeting with HUC, design reviews, and participating in any needed interaction between HUC and the Contractor. 6.2. The contractor is responsible for preparing required submissions for obtaining the Net Energy Metering (NEM) and interconnection agreement from the utility. HUC will sign the NEM and interconnection agreements, not the contractor. 6.3. The contractor shall manage interconnection and startup of project in coordination with the Site and HUC. 7. Quality Control Plan А 7.1. Content. For each performance and installation requirement, the QCP shall identify: item/system to be tested, exact test(s) to be performed, measured parameters, inspection/testing organization, and the stage of construction development when tests are to be performed. Each inspection/test shall be included in the overall construction schedule. The contractor is not relieved from required performance tests should these not be included in the plan. The QCP is intended to document those inspections and tests necessary to assure HUC that product delivery, quality and performance are as required. It also serves as an inspection coordination tool between the contractor and HUC. An example of these inspections/tests is the final test/inspection for overall performance compliance of the system. Results from tests and inspections shall be submitted within 24 hours of performing the tests and inspections. At a minimum, the QCP should conform to Systems - Minimum Requirements for System Documentation, Commissioning Tests, Performance tests will be conducted at the final commissioning/acceptance testing, and one year after the acceptance date. Performance tests will include I-V curve traces for all PV strings. For project acceptance, measured performance at maximum power point must be at least 90% of expected performance, which will be adjusted for concurrently measured cell temperature and plane of array (POA) irradiance. This can be accomplished using a current industry standard I-V curve tracer with capability to compare measured PV string I-V curves with nameplate performance of PV string compensated for concurrent cell temperature and POA irradiance measurements. If performance is less than 90% at the one year performance tests (measured using the same method as for project acceptance), contractor shall promptly troubleshoot and correct any malfunction or issues as necessary to return project to 90% measured performance or better. The contractor shall supply HUC with detailed documentation of malfunction or errors and all corrective actions taken. 7.2. Submissions. The QCP shall be prepared and submitted within 21 calendar days of the post award conference meeting and prior to any construction on-site. The QCP may be rejected as incomplete and returned for resubmission if there is any performance, condition or operating test that is not covered therein. 7.3. Updating. During construction, the contractor shall update QCP if any changes are necessary due to any changes or schedule constraints. HUC shall be notified immediately of any schedule and/or procedural changes. 8. SOLAR ELECTRIC MODULE ARRAY 8.1. Photovoltaic Modules 8.1.1. PV modules shall be a commercial off-the-shelf product, shall be UL listed. Compliant Photovoltaic Modules to be eligible for Construction Specifications Institute (CSI), and and as specified herein. Б 8.1.2. The PV modules shall be installed such that the maximum amount of sunlight available year-round on a daily basis should not be obstructed. All projects must include documentation of the impact from any obstruction on the seasonal or annual performance of the solar electric array. 8.1.3. The solar electric system shall produce the minimum annual AC energy output. If the system is proposed to produce more than the minimum required energy output to energy. The output will be adjusted if the actual yearly solar insulation received is less than that indicated by PVWatts. A normalizing calculation will be made to correct the output, so a contractor is not penalized for an extremely cloudy year. 8.1.4. System wiring shall be installed in accordance with the provisions of the NEC. 8.1.5. All modules installed in a series string shall be installed in the same plane/orientation. 8.1.6. PV modules shall have a 25-year limited warranty that modules will generate no less than 80% of rated output under STC. PV modules that do not satisfy this warranty condition shall be replaced. 8.1.7. Panel installation design shall allow for the best ventilation possible of panels to avoid adverse performance impacts. 8.1.8. Provide HUC with 1% extra PV panels. 8.1.9. Warranty. module will generate less than 90% of its specified minimum power when purchased. PV modules shall have a 25-year limited warranty guarantying a minimum performance of at least 80% of the original power for at least twenty-five (25) years. Measurement made under actual installation and temperature will be normalized to standard test conditions using the temperature and coefficients published in the module specifications. 8.2. Inverter and Controls 8.2.1. Each inverter and associated controls shall be properly installed according to 8.2.2. Inverters shall be commercial off-the-shelf product, UL listed. 8.2.3. The inverter shall have at a minimum the following features: UL/ETL listed Peak efficiency of 96% or higher Inverter shall have operational indicators of performance and have built-in data acquisition and remote monitoring. The inverter shall be capable of parallel operation with the existing AC power. Each inverter shall automatically synchronize its output waveform with that of the utility upon restoration of utility power. В 8.2.4. Warning labels shall be posted on the control panels and junction boxes indicating that the circuits are energized by an alternate power source independent of utility- provided power. 8.2.5. Operating instructions shall be posted on or near the system, and on file with facilities operation and maintenance documents. 8.2.6. Provide detailed lock out /tag out instructions for all equipment. 8.2.7. Power provided shall be compatible with onsite electric distribution systems. Install inverters and control panels in most optimum locations with appropriate environmental protection. They shall be shaded from direct sun from 10 a.m. to 6 p.m. in the months of June to August and be able to be secured. 8.2.8. The inverter and system shall utilize an astronomical timer or other means to shut down the inverter during night time to avoid energy usage at night. 8.2.9. Warranty. A 10- 8.3. Control Panel to Solar Electric Array Wire Runs . 8.3.1. All field electrical devices shall have the capability to be locked as appropriate. 8.4. PV Monitoring 8.4.1. The PV systems installed shall provide for monitoring by HUC as well as by the general public on a vendor provided website. The public site is intended for education and outreach regarding renewable energy production and information on avoided greenhouse gas production. The public site shall be maintained for ten years. 8.4.2. Monitor by an IP addressable device and displayed graphically in a user-friendly manner the following parameters: AC energy Solar irradiance Show status of all equipment Provide electrical one line showing operation and performance of all equipment Data shall be available both in real time and in archived in 15-minute averages. All monitoring hardware and monitoring equipment shall be provided by the contractor. System shall also include metering for remote data collection and display on vendor-provided web site of system performance. System performance shall allow display during different monitoring periods from one hour to one year. ЊЉ 8.4.3. Meters shall be installed in the main distribution panel (MDP). HUC will supply the meter. 8.5. Transformers 8.5.1. HUC will provide necessary pad mount transformers at the POI. 8.6. Structural Requirements 8.6.1. All structures, including array structures, shall be designed in accordance with all applicable state and local codes and standards. 8.6.2. The contractor shall provide structural calculations, stamped by a licensed professional structural engineer in the appropriate state. 8.6.3. All structural components shall be non-corrosive (galvanized steel, stainless steel or aluminum). All hardware shall be stainless steel or aluminum. All components shall be designed to obtain a minimum 40 year design life and include a 10 year warranty. 8.7. Lightning Protection. Provide surge protection on all electrical systems. 8.8. PV System Installation Warranty. The PV systems shall carry a ten (10) year workmanship warranty by both the manufacturer and the installer including parts and labor. 9. INSPECTIONS AND TESTS 9.1. General. The contractor shall perform inspections and tests throughout the construction process including: existing conditions/needs assessments, construction installation placement/qualification measurements and final inspections/tests performance q payments as identified QCP. 9.2. HUC Witness. All inspections and tests, to verify documented contract assumptions, to establish work accomplishment, or to certify performance attainment shall be witnessed by HUC and/or construction management (CM) and coordinated through the QCP. 9.3. Final Inspections and Tests. In order to ensure compliance with provisions of the NEC, an inspection by a licensed electrical inspector is mandatory after construction is complete. Tests shall include a commissioning of the array. Commissioning tests shall conform with the requirements in Section 7 (QCP). Commissioning shall be performed for the entire PV system. This data shall be used to confirm proper performance of the PV system. ЊЊ 9.4.Documentation.Inspections/tests required in the QCP shall result in a written record of data/observations. The Contractor shall provide documents containing all test reports/findings. Test results shall typically include: item/system tested, location, date of test, test parameters/measured data, state of construction completion, operating mode, contractor inspector/ HUC witness, test equipment description and measurement technique. 10. Project Closeout 10.1. Preparation for Final Inspection and Tests. The following steps shall be taken to assure the project is in a condition to receive inspections and tests. Finalize record drawings and mas-b 10.2. Record Drawings. The contractor shall maintain on site the working record drawings of all changes/deviations from the original design. Notations on record drawings shall be made in erasable red pencil or other color to correspond to different changes or categories of work. Marked-up drawings shall always be maintained at the c site construction office, available for HUC. Record drawings shall note related change order designations on impacted work. When shop drawings indicate significant variations over design drawings, shop drawings may be incorporated as part of record drawings. Review of record drawings may be required before monthly payments can be processed. 10.3. As-Built Drawings and Specifications. The Contractor shall provide "as-built drawings" and documents based upon actual site installation. Should HUC determine that variations exist between finished construction and the as-built drawings, the contractor shall correct drawings to the satisfaction of HUC. The contractor shall submit a hard copy and an electronic copy - drawings and specifications as CAD and PDF files. 10.4. Warranties and Guarantees. Submit specific warranties and guarantees, final certifications and similar documents to HUC upon substantial completion and prior to final payment. Include copies with operations and maintenance manual. All warranties shall be signed by a principal of the c 10.5. Maintenance Manual. Provide a detailed operation and maintenance manual including diagram of system components, description of normal operation; description of operational indicators and normal status of each, table of modes of operation, safety considerations, preventative maintenance requirements, troubleshooting and corrective actions; sources of spare parts and cut-sheets for all components. The contractor shall prepare a hard copy and an electronic copy containing the detailed Maintenance Manual. Submit to HUC. 10.6. Spare Parts. The contractor shall provide a recommend list of spare parts ЊЋ 10.7.Demonstration and Training.Provide HUC with approved training for designated personnel in the operation of the entire photovoltaic energy system, including operation and maintenance of inverter(s), transfer switches, panel board, disconnects and other features as requested by HUC. Instruct the designated HUC personnel in removal and installation of panels, including wiring and all connections. Provide HUC with written instructions and procedures for shut-down and start-up activities for all components of the system. 11. Operations and Maintenance Service. 11.1. Provide operation and maintenance of the solar array systems for one year. Work shall include all manufacturer recommended maintenance as well as a 12 month performance commissioning as outlined in section 7.1 (QCP). Hutchinson Utilities Commission shall be invited to witness all performance commissioning. A maintenance log shall be maintained to note dates, equipment and issues being resolved. Contractor should be available within 48 hours to respond to natural disasters (extreme storm, hail, wind events) to inspect array for damage. 12. Bid Bond. Each proposal should be accompanied by a Bid Bond, made payable to the Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota, in the amount of five per cent (5%) of the Bid, as a guaranty that the Bidder will enter into a proposed Contract and provide a Performance Bond after his/her Bid shall have been accepted. 13. Performance Bond. The successful Bidder shall furnish a Performance Bond in an amount equal to one hundred per cent (100%) of the Contract price and a Certificate of Insurance with appropriate limits to the Owner prior to the approval of the Contract. No Bidder may withdraw his/her Bid or Proposal for a Period of thirty (30) days after the submittal deadline date. At the aforementioned time and place, or at such later time and Place as the Owner then may fix, the Owner will act upon Proposals received and with its sole discretion may award Contract(s) for the furnishing of said equipment and professional services. 14. Certificate of Insurance. 14.1 Contractor Liability Insurance The Contractor shall maintain the following insurance, and shall file certificates of such insurance with the Owner. The Certificate of Insurance should list Hutchinson Utilities Commission as additionally insured on the certificate. (a) : The Contractor shall maintain the following insurance, and, shall file certificates of such insurance with the Owner. (b) Insurance Required by Employee Benefit Acts: The Contractor shall maintain insurance required under any other employees benefits acts in force or required by law at the place of construction. ЊЌ (c) General and Automotive Liability Insurance: The Contractor shall purchase and maintain comprehensive general liability insurance and comprehensive automobile liability which will protect the Contractor from claims for damage because of bodily injury, including death, and damage to property, which may arise both out of and during the completion of the operations under a Contract. The insurance shall provide protection against the following hazards: (1) General Liability Hazards: i. Premises- Operations ii. Elevators iii. Independent Contractors- sublet work iv. Completed Operations (products) This coverage shall be carried through completion. v. Contractual Liability- Extended to include the liability assumed under this Contract. (2) Automobile Liability Hazards: i. All owned and hired vehicles General and Automobile Liability Insurance shall be written for not less than the limits specified below. Please notice that property damage insurance shall be on an occurrence basis rather than on an accident basis. Coverage Limits of Liability Automobile Combined single limit $2,000,000 Or Bodily Injury $2,000,000 Each Person $2,000,000 Each Occurrence Property Damage $2,000,000 Each Occurrence General Liability Bodily Injury $2,000,000 Each Person $2,000,000 Occurrence $2,000,000 Aggregate Property Damage $2,000,000 Each Occurrence $2,000,000 Aggregate ЊЍ 15. Hold Harmless Agreement old harmless the Owner and their officers, employees and agents fees and litigation expenses, on account of bodily injury, sickness, disease, death and property damage as a r with this project. It is understood, however, that the Contractor shall assume no ЊЎ HUTCHINSON UTILITIES COMMISSION Board Action Form ApprovalofReq#8539toPEServicestoPrepareWrittenTransmissionIntegrity Agenda Item: ManagementPlan(IMP)&ModerateConsequenceArea(MCA)AssessmentProcess. Presenter:Agenda Item Type: JeremyCarter NewBusiness Time Requested (Minutes): 5 Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: DuetotherecentgrowthoftheHutchinsonIndustrialPark,theNaturalGasDivisionof HutchinsonUtilitiesisnowrequiredtoprepareandimplementacompleteTransmission IntegrityManagementPlan. DuetorecentchangesinDOT192.710"Non-HCAAssessments"theNaturalGas DivisionofHutchinsonUtilitiesisnowrequiredtoimplementaModerateConsequence Area(MCA)Assessmentprocess. ProfessionalEngineeringServices,inpartnershipwithParamountEnergyConsulting Group,LLC(PECG),willcompletebothprogramsforHutchinsonUtilities. BOARD ACTION REQUESTED: Fiscal Impact: $40,920.00 Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: