03-31-2021 HUCCPHUTCHINSON UTILITIES COMMISSION
AGENDA
REGULAR MEETING
March 31, 2021
3:00 p.m.
1. CONFLICT OF INTEREST
2. APPROVE CONSENT AGENDA
a. Approve Minutes
b. Ratify Payment of Bills
3. APPROVE 2020 FINANCIAL AUDIT — PRESENTATION BY JUSTIN
MCGRAW
4. APPROVE FINANCIAL STATEMENTS
5. OPEN FORUM
6. COMMUNICATION
a. City Administrator
b. Divisions
C. Human Resources
d. Legal
e. General Manager
7. POLICIES
a. Review Policies
i. Section 3 of Exempt Handbook
ii. Section 3 of Non -Exempt Handbook
b. Approve Changes
8. UNFINISHED BUSINESS
a. Status of Governor's Salary Cap
9. NEW BUSINESS
a. Approve Land Lease Agreement
b. Approve Natural Gas Facilities Maintenance Agreement — City of
Fairfax
C. Plant 2 Substation Improvements
d. Follow-up Conversations on February Customer Bills
e. PILOT Discussion
10. ADJOURN
MINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, February 24, 2021
Call to order — 3:00 p.m.
President Matt Cheney called the meeting to order. Members present: President Matt
Cheney; Vice President Anthony Hanson; Secretary Don Martinez; Commissioner Monty
Morrow; Commissioner Robert Wendorff; GM Jeremy Carter; Attorney Marc Sebora
Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Martinez, second by Commissioner Morrow to approve the
Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
GM Carter presented the Financial Statements. Year End outstanding balances of
delinquent accounts past 30 days are being monitored. Legislative bodies have also
been monitoring these amounts as the pandemic continues. GM Carter noted that
depreciation is up due to beginning to depreciate the new engines. HUC will be over
budget in this category all year; at first HUC was budgeting for a half year of
depreciation but it was decided during the audit to capitalize the engines at the end
of 2020. Overall fairly consistent in both Electric and Natural Gas divisions
Motion by Commissioner Hanson, second by Commissioner Wendorff 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
d. Legal — Marc Sebora — Recapped conversations that have been held in the past
on the General Managers salary and the effect that the MN Governor's salary
cap has on the GMs ability to receive increases from the Commission. Currently
there is a Bill in the Legislature that has made it through a couple of committees
that are proposing to do away of the governor's salary cap all together. Most of
the weight is being pulled by MMUA along with the City of Rochester testifying
on the effects that the governor's salary cap has had on the ability to retain
employees. Mr. Sebora looked to the Commission for any feedback or
expression of opinion.
Conversations were held on if there are other industries besides MMUA that are
involved and voicing support for this bill. Mr. Sebora reviewed the process of
how bills are processed and the time frame.
After Discussion, the board asked Mr. Sebora to contact local representatives to
support the bill being proposed. Mr. Sebora will send letters and contact MMUA
to keep HUC in the loop and forthcoming conversations.
e. General Manager — Jeremy Carter
i. Legislative Rally Update
ii. Federal Washington Lobby efforts coming up March 1-3
iii. Natural Gas Market Prices
6. Policies
a. Review Policies
i. Section 2 of Exempt Handbook
ii. Section 2 of Non -Exempt Handbook
No changes recommended at this time.
7. Unfinished Business
8. New Business
a. Review 2020 Annual Distributed Generation
GM Carter provided the 2020 Annual Distributed Generation Resources Annual
Report information. The report tracks the power generated from the solar
systems that is delivered to the customer, what is sold back to HUC, and what is
the net charge/credit for the customer. Every year HUC is required by state law
to present this report to HUC's governing board.
b. Approve Requisition #8676 — Electric Distribution Coordination Study
GM Carter presented Requisition #8676 — Electric Distribution Coordination
Study. The next few items relate to each other. The last time an in-depth
distribution study was performed was in 2004 along with having a high-level study
10 years ago as HUC prepared for an addition of Unit #5 to evaluate how the new
generation would affect the distribution system. Now that HUC has updated
some of the infrastructure; changed out transformers and equipment in
substations, revising Plant #2 substation with a different configuration and the
2
load has changed in the last 10-15 years it will be beneficial to have a study
performed again to make sure the protection systems are performing as they
should with all the changes that have occurred. The results of this study will tell
Staff what changes need to be made, if any, to the relaying and fusing on the
feeders and making sure everything is sized correctly.
GM Carter noted the timeline for completion would be this summer.
After discussion, a motion by Commissioner Hanson, second by Commissioner
Morrow to Approve Requisition #8676 — Electric Distribution Coordination. Motion
carried unanimously.
c. Approve Requisition #8674 — McLeod Substation RTU
GM Carter presented Requisition #8674 — McLeod Substation RTU. This item is
similar to the Plant #2 RTU project, the Ilex RTU at the McLeod Substation is to
be replaced and a new RTU integrated with the existing protection system relays
at the substation. The project dovetails with the capacitor bank project which is
scheduled for completion in 2021.
A motion by Commissioner Martinez, second by Commissioner Wendorff to
Approve Requisition #8674 — McLeod Substation RTU. Motion carried
unanimously.
d. Approve Requisition #8675 — Plant #2 Substation RTU and Relays
GM Carter presented Requisition #8675 — Plant #2 Substation RTU and Relays.
This item is specifically for the new Plant 2 transformers that are now on site. An
engineering firm will be used to design the protection system scheme for the
substation and feeders; specify materials, develop relay settings and commission
the relays. HUC will procure and install the equipment. Work will start this Spring
and should be complete before the hot season.
A motion by Commissioner Hanson, second by Commissioner Martinez to
Approve Requisition #8675 — Plant #2 Substation RTU and Relays. Motion
carried unanimously.
e. Approve 3M's Natural Gas Transportation and Daily Swing Supply Agreement
GM Carter provided a summary of the 3M's Natural Gas Transportation and Daily
Swing Supply Agreement. 3M's current agreement expires on March 1, 2021.
This agreement provides transportation rights to 3M on Hutchinson's facilities
3
from March 1, 2021 through March 1, 2022. This agreement is identical to the
past agreement with the exception that the `Meter Fee' increase of $145/meter is
now $215/meter in accordance with the rate realignment structure that was put in
place by this Commission.
A motion by Commissioner Wendorff, second by Commissioner Morrow to
Approve 3M's Natural Gas Transportation and Daily Swing Supply Agreement.
Motion carried unanimously.
f. Discussion on Market Prices and Financial Impact with the Severe Weather
GM Carter started the discussion on Market Prices and Financial Impact with the
Severe Weather. As the Commission recalls a situation happened like this about
3 years ago. HUC has to Nom a certain amount of gas on a Friday for the
weekend and the problem is the pricing does not settle until the following Monday
but in this case the following Tuesday prices settled due to the President's Day
holiday. On Friday Feb 12, the spot gas price was $15/mmbtu and Staff Nom'd
just under 4700mmbtu/day for Friday through Monday. Staff returned on Tuesday
and the price had settled at $154.91/mmbtu for those four days. Typically, HUC
pays about $3/mmbtu. Over those 4 days HUC spent $725K per day in natural
gas purchases. On the Feb 17, Staff lowered the Noms to 3680 mmbtu and the
price jumped to $188/mmbtu. Talking with other utilities down south, the prices
there settled at $800-$1100/mmbtu. A lot of these utilities have spent 3-4 years
of natural gas budgets in 4 days. Other utilities will have depleted cash reserves
by 70%. All utilities are in different situations. HUC is estimating $6M in gas
purchases for Feb; $3.3M is retail customers and $2.7M is contract customers.
To put in perspective $3.5M is HUC's entire budget for the year for retail
customers. GM Carter stated that the natural gas is an unregulated industry as
far as price caps, there is no ceiling on price particularly in extreme weather
events like the electric side. The cold weather event also caused natural gas
well hubs in the southern part of the U.S to freeze, limiting the amount of natural
gas that could be extracted from the ground and placed into production. Not only
did the cold weather impact natural gas pricing, electric costs also increased;
particularly in the ERCOT Texas market. ERCOT was not able to get a supply of
gas to the generators. There are concerns mounting over inflated natural gas
pricing in the markets, people manipulating the markets, and investors making
money. FERC and NERC are starting inquiries. GM Carter did note that
Minnesota did not have a large reliability issue like some areas down south, even
though there were high prices no one went with out heat.
Conversations were held on how the market prices are going to affect the
customer bills and what HUC can do to minimize the cost impact either by
spreading the amount over time or using cash reserves/MRES refund to lessen
12
the customer bills.
GM Carter noted a Special meeting will need to be held next week to discuss the
financial impact to customer accounts along with sending a Press Release to the
paper on the conclusion of next week's meeting.
9. Adjourn
There being no further business, a motion by Commissioner Martinez, second by
Commissioner Hanson to adjourn the meeting at 4:09p.m. Motion carried
unanimously.
ATTEST:
Matt Cheney, President
5
Don Martinez, Secretary
MINUTES
Special Meeting — Hutchinson Utilities Commission
Thursday, March 4, 2021
Call to order — 3:00 p.m.
President Cheney called the meeting to order. Members present: President Matt Cheney,
Vice President Anthony Hanson; Secretary Don Martinez; Commissioner Monty Morrow;
Commissioner Robert Wendorff; GM Jeremy Carter
The purpose of the special meeting is to discuss the February Natural Gas Prices and the
impact to retail customers.
GM Carter recapped the discussion that took place at the February Regular Commission
meeting recognizing that further discussion would be needed on the Polar Vortex -Winter
Storm Uri and financial impact on customer bills. Winter Storm Uri created severe freezing
cold temperatures along with rain and ice storms. These types of weather events that
happened down south in Texas and Oklahoma significantly impacted the Midwest as well;
particularly in the SPP, ERCOT and the MISO market and to a greater extent the Natural
Gas pricing hubs for the Midwest. Most utilities in Minnesota use the Northern Border
Pipeline which runs through 2 pricing hubs; either the Demarcation or Ventura pricing
hubs. HUC buys all the spot market gas off the Ventura hub which saw price escalations
with significant reduction in natural gas supply because of the weather event. The biggest
cause of the weather event price increase in the natural gas side is the lack of the natural
gas being able to come out of the ground along with pipeline capacity constraints; the
cold weather froze off many natural gas well heads in the southern part of the U.S. limiting
the amount of natural gas that could be extracted from the ground and placed into
production, limiting supply. This had a significant impact for HUC and other utilities in the
Midwest. As part of this, there were also significant electric cost increases, particularly in
the ERCOT Texas market; without the Natural Gas supply they were not able to generate
which in turn created rolling blackouts to happen to keep the integrity of the system. The
main point in relation to the Polar Vortex this past February was that it had more of a
significant impact to HUC than the previous storm in December of 2017. Today
conversations will need to be had on the impact of the natural gas prices to the customers'
bills along with to a lesser extent the electric side impact; HUC had to increase market
volumes procured along with additional electricity that was needed. The storm down
south had a significant geographical impact around the country and HUC was not immune
to it along with other municipal utilities, co-ops and investor -owned utilities. There have
been investigations and inquires already started in ERCOT and at various regulatory
levels. Many associations have already sent letters to President Biden and various federal
departments to discuss what needs to be done to strive to create markets that have a
price structure tool; customers cannot afford to have these significant spike increases.
This is a major catastrophe not only with assets but also financially. There have been
conversations about trying to receive government subsidiary relief and some potential
refunds back to utilities to pass back to customers but that takes time to run through the
1
regulator process which can take a year or two, this is something HUC cannot rely on.
HUC is financially healthier than many utilities because of what the boards have done in
the past and present in creating the policies and positive reserves that HUC has. The
context of the conversation for the Board today is to discuss helping the customers out
with some type of relief on the bills incurred since HUC has the reserve to do this or
should these costs be passed onto the customers that HUC has over a short period or
long period of time.
GM Carter reviewed both the Spot Market Gas Costs and electric costs for the month of
February and how this effects the 2021 budget. On average a Residential bill in January
would be roughly $130-$150, now for the month of February on average a residential bill
could be $260-$270; depending on usage. With the average usage, customer bills would
be about 2.5 times what the bill was for January; the more usage, the higher the multiplier.
GM Carter reviewed the 2 different billing options that are available. First option is to bill
the entire usage and cost on the March bill. The positives to this option are 1) Tracking
purposes; current billing system has limits on the complexity, 2) Most transparent to
customers; customers will now be able to see and know the whole balances right away,
this allows Staff to work with customers on a payment plan, and 3) minimizes calls that
Staff will receive as the months go by inquiring what the additional costs are. This is the
most equitable approach for all customers. Second option is to bill customers over a
length of time. The negatives to this option are 1) If spreading through a fuel cost
adjustment the Commercial sector is picking up more of the incremental cost than they
should be, this is not fair or equitable to do; gas usage for commercial accounts do not
go down in the summer as much as it does for residential accounts, 2) Move In/Move
Outs; If a new customer comes into a home during this time, that new customer is now
paying for usage that was incurred prior to the move in, and 3) this is not transparent for
customers; customers will not know how much the bill is and Staff needs to manually keep
track of all transactions.
GM Carter noted that Staff is recommending the first option as it is the cleanest for staff
and customers.
Commissioner Martinez addressed the Board to think about utilizing the money that was
received from the MRES refund and to give back to the consumer which was an option in
the beginning. Commissioner Martinez also noted to tie this in with a request to the City
of PILOT not being charged; PILOT is based on revenue, if HUC is going to offset revenue
by this idea it would be fair to ask the City to not consider this as revenue in the PILOT.
Conversations were held on the Rate Stabilization Funds
Discussions were held on using a partial amount of the MRES refund towards the
customers and a partial amount to something tangible; example Solar Array. GM Carter
recapped the reason of the MRES refund.
GM Carter stated that after this meeting a Press Release will be completed for the Leader
and published next week.
After discussion, a motion by Commissioner Martinez, second by Commissioner Hanson
to use $1.2M in cash reserves and $451 K from the Rate Stabilization Fund to offset the
burden to the rate payor, along with Option 1 from above. Motion carried unanimously.
2
There being no further business, a motion by Commissioner Hanson, second by
Commissioner Martinez to adjourn the meeting at 4.15 p.m. Motion carried unanimously.
ATTEST:
Matt Cheney, President
3
Don Martinez, Secretary
03/25/2021 02:00
PM
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
Page 1/42
User: JMartig
CHECK DATE
FROM 02/20/2021 - 03/25/2021
DE: Hutchinson
Utili
Check Date
Bank
Check #
Payee
Description
Account
Dept
Amount
Fund: 1 ELECTRIC
02/22/2021
GEN
745(E)*
POINT & PAY
collection - Materials
401-903-
06
2,650.38
02/23/2021
GEN
753(E)*
MINNESOTA REVENUE
State Sales Tax
242-000-
00
61,623.00
City Sales Tax
242-000-
00
4,455.00
COUNTY SALES TAX
242-000-
00
4, 455.00
HECK GEN 753(E) TOTAL FOR FUND 1:
70,533.00
02/23/2021
GEN
767(E)
MISO
Accounts Payable - Miso
232-000-
00
25,455.01
Accounts Payable - Miso
232-000-
00
796.39
HECK GEN 767(E) TOTAL FOR FUND 1:
26,251.40
02/24/2021
GEN
73305*
ADAM MARKGRAF
DEP REFUND/APPLIED
235-000-
00
113.75
02/24/2021
GEN
73306*
AMBER MCCLURE
Cip - Residential
401-916-
07
25.00
02/24/2021
GEN
73307*
ANDREW OR ASHLEY ROSENGREN
DEP REFUND/APPLIED
235-000-
00
240.50
02/24/2021
GEN
73308*
ANTHONY KENDRICK
DEP REFUND/APPLIED
235-000-
00
104.00
02/24/2021
GEN
73309
BASEMENT WATER CONTROLLED
Tiling -pump room plant 1 balance
107-341-
00
3,000.00
02/24/2021
GEN
73311*4
BRANDED SOLUTIONS
Uniforms & Laundry
401-550-
01
171.32
Uniforms & Laundry
401-588-
02
171.32
HECK GEN 73311 TOTAL FOR FUND 1:
342.64
02/24/2021
GEN
73312*
BREANNE TASCHE
DEP REFUND/APPLIED
235-000-
00
65.00
02/24/2021
GEN
73313*
BRIAN ROSENBERGER
DEP REFUND/APPLIED
235-000-
00
162.50
02/24/2021
GEN
73314*
BRITTANY STORK
DEP REFUND/APPLIED
235-000-
00
58.50
02/24/2021
GEN
73315
CHRIS RENSTROM
Cip - Residential
401-916-
07
300.00
02/24/2021
GEN
73317*
CYNTHIA GREGORIUS
DEP REFUND/APPLIED
235-000-
00
65.00
02/24/2021
GEN
73318*
CYNTHIA GREGORIUS
DEP REFUND/APPLIED
235-000-
00
97.50
03/25/2021 02:00
PM
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
Page 2/42
User: JMartig
CHECK DATE FROM
02/20/2021 - 03/25/2021
DE: Hutchinson
Utili
Check Date
Bank
Check #
Payee
Description
Account
Dept
Amount
Fund: 1 ELECTRIC
02/24/2021
GEN
73319*
DANIEL CROTTEAU
Cip - Residential
401-916-
07
200.00
02/24/2021
GEN
73320*
DANNALE KRUEGER OR MATTHEW KRUEGER
DEP REFUND/APPLIED
235-000-
00
162.50
02/24/2021
GEN
73321*
DANNY MASICA
DEP REFUND/APPLIED
235-000-
00
52.00
02/24/2021
GEN
73322*
DANYELLE COX
DEP REFUND/APPLIED
235-000-
00
143.00
02/24/2021
GEN
73323*
DEONNA BANKS
DEP REFUND/APPLIED
235-000-
00
149.50
02/24/2021
GEN
73324*
DYLAN BURCH
DEP REFUND/APPLIED
235-000-
00
237.25
02/24/2021
GEN
73325*
EVERETT BRYANT OR SARAH RADUNZ
DEP REFUND/APPLIED
235-000-
00
130.00
02/24/2021
GEN
73326*
GIDEON KRIENKE
DEP REFUND/APPLIED
235-000-
00
32.50
02/24/2021
GEN
73327
GREAT RIVER ENERGY
TRANSMISSION EXPENSE
401-565-
03
142,673.55
02/24/2021
GEN
73328*
HILDA JIMENEZ
DEP REFUND/APPLIED
235-000-
00
195.00
02/24/2021
GEN
73329*4
HILLYARD/HUTCHINSON
Supplies
401-550-
01
284.29
Supplies
401-550-
01
123.37
Grounds - Materials
401-935-
08
13.51
HECK GEN 73329 TOTAL FOR FUND 1:
421.17
02/24/2021
GEN
73330*
ISABELLA JACKSON
DEP REFUND/APPLIED
235-000-
00
45.50
02/24/2021
GEN
73331*
JACALYNN MIELKE OR JANELLE MIELKE
DEP REFUND/APPLIED
235-000-
00
201.50
02/24/2021
GEN
73332*
JASON BAUNE OR BRENDA BAUNE
DEP REFUND/APPLIED
235-000-
00
81.25
02/24/2021
GEN
73333*
JENAPHER BLAIR
DEP REFUND/APPLIED
235-000-
00
227.50
02/24/2021
GEN
73334*
JEREMY MESSNER
DEP REFUND/APPLIED
235-000-
00
221.00
02/24/2021
GEN
73335*
JERROD WECKMAN OR ASHLEY LUDEWIG
DEP REFUND/APPLIED
235-000-
00
55.25
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 3/42
Amount
Fund: 1 ELECTRIC
02/24/2021
GEN
73336*
JERROD WECKMAN OR ASHLEY LUDEWIG
GET
REFUND/APPLIED
235-000-
00
178.75
02/24/2021
GEN
73337*
JESSICA MILLER
GET
REFUND/APPLIED
235-000-
00
97.50
02/24/2021
GEN
73338*
JETTA MYLLYKANGAS
GET
REFUND/APPLIED
235-000-
00
152.75
02/24/2021
GEN
73339*
JILL MILLER
GET
REFUND/APPLIED
235-000-
00
130.00
02/24/2021
GEN
73340*
JODY LANGAN
GET
REFUND/APPLIED
235-000-
00
208.00
02/24/2021
GEN
73341*
JORDAN KEIL
GET
REFUND/APPLIED
235-000-
00
65.00
02/24/2021
GEN
73342*
JORDAN TESSMER
GET
REFUND/APPLIED
235-000-
00
48.75
02/24/2021
GEN
73343*
JORDAN TESSMER
GET
REFUND/APPLIED
235-000-
00
87.75
02/24/2021
GEN
73344*
JOSEPH THORNE OR JESSICA CONLIN
GET
REFUND/APPLIED
235-000-
00
195.00
02/24/2021
GEN
73345*
JOSEPH THORNE OR JESSICA CONLIN
GET
REFUND/APPLIED
235-000-
00
113.75
02/24/2021
GEN
73346*
JOY NUNVAR
GET
REFUND/APPLIED
235-000-
00
227.50
02/24/2021
GEN
73347*
JUSTIN KBABY OR ANNA KBABY
GET
REFUND/APPLIED
235-000-
00
78.00
02/24/2021
GEN
73348*
JUSTIN KBABY OR ANNA KBABY
GET
REFUND/APPLIED
235-000-
00
84.50
02/24/2021
GEN
73349*
JUSTIN SCHMIDT
GET
REFUND/APPLIED
235-000-
00
325.00
02/24/2021
GEN
73350*
KATIE M LENE OR JUSTIN LENE
GET
REFUND/APPLIED
235-000-
00
78.00
02/24/2021
GEN
73351*
KRAIG KELLNER
GET
REFUND/APPLIED
235-000-
00
234.00
02/24/2021
GEN
73352*
KRISTINA IBARBA
GET
REFUND/APPLIED
235-000-
00
182.00
02/24/2021
GEN
73353*
KYLE BAYSINGER
GET
REFUND/APPLIED
235-000-
00
91.00
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 4/42
Amount
Fund: 1 ELECTRIC
02/24/2021
GEN
73354*
LEE STOLTZ OR BRENDA STOLTZ
DEP REFUND/APPLIED
235-000-
00
195.00
02/24/2021
GEN
73355*
LINDA RIKKE
DEP REFUND/APPLIED
235-000-
00
39.00
02/24/2021
GEN
73356*
MARCO TECHNOLOGIES, LLC
Office Supplies
401-921-
08
188.26
Office Supplies
401-921-
08
323.24
HECK GEN 73356 TOTAL FOR FUND 1:
511.50
02/24/2021
GEN
73357
MARY KRENIK
Cip - Residential
401-916-
07
25.00
02/24/2021
GEN
73358*
MATT JASKOWIAK OR AMY JASKOWIAK
DEP REFUND/APPLIED
235-000-
00
217.75
02/24/2021
GEN
73359*
MELANIE OR ISAIAH SCHROEDER
DEP REFUND/APPLIED
235-000-
00
253.50
02/24/2021
GEN
73360*
MICHAEL BELLO
DEP REFUND/APPLIED
235-000-
00
162.50
02/24/2021
GEN
73361*
MICHAEL GAUDETTE
DEP REFUND/APPLIED
235-000-
00
221.00
02/24/2021
GEN
73362
MIDWEST MACHINERY CO
Power Equipment - Materials
402-598-
02
161.25
Power Equipment - Materials
402-598-
02
68.30
HECK GEN 73362 TOTAL FOR FUND 1:
229.55
02/24/2021
GEN
73363*
MIKE J MILLER
DEP REFUND/APPLIED
235-000-
00
97.50
02/24/2021
GEN
73364
NERC
Purchased Power
401-555-
02
3,589.02
02/24/2021
GEN
73365*
NICHOLAS SCHATZ
DEP REFUND/APPLIED
235-000-
00
97.50
02/24/2021
GEN
73366*
NICK MAAHS
DEP REFUND/APPLIED
235-000-
00
91.00
02/24/2021
GEN
73368*
PAUL PETERSON OR TIFFANY PETERSON
DEP REFUND/APPLIED
235-000-
00
247.00
02/24/2021
GEN
73369*
PETER BOLLING OR PANDORA BOLLONG
DEP REFUND/APPLIED
235-000-
00
260.00
02/24/2021
GEN
73370*
RAYMOND J LAWAY
DEP REFUND/APPLIED
235-000-
00
84.50
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 5/42
Amount
Fund: 1 ELECTRIC
02/24/2021
GEN
73371*
REBECKA KNUDSON OR TRAVIS KNUDSON
DEP
REFUND/APPLIED
235-000-
00
195.00
02/24/2021
GEN
73372*
RICHARD HANLEY
DEP
REFUND/APPLIED
235-000-
00
208.00
02/24/2021
GEN
73373*
ROGER AHLBRECHT OR SHARON KRUG
DEP
REFUND/APPLIED
235-000-
00
143.00
02/24/2021
GEN
73374*
ROSS CARRIGAN
DEP
REFUND/APPLIED
235-000-
00
172.25
02/24/2021
GEN
73375*
SANDRA VAUGHN
DEP
REFUND/APPLIED
235-000-
00
39.00
02/24/2021
GEN
73376*
SARAH FORBES
DEP
REFUND/APPLIED
235-000-
00
68.25
02/24/2021
GEN
73377*
SARAH STOVERN
DEP
REFUND/APPLIED
235-000-
00
65.00
02/24/2021
GEN
73378*
SETH BEEBE
DEP
REFUND/APPLIED
235-000-
00
78.00
02/24/2021
GEN
73380*
SHARON ROGERS
DEP
REFUND/APPLIED
235-000-
00
318.50
02/24/2021
GEN
73381*
SKYLAR HOPKINS
DEP
REFUND/APPLIED
235-000-
00
204.75
02/24/2021
GEN
73382*
STEVE WEIGEL OR FONDA WEIGEL
DEP
REFUND/APPLIED
235-000-
00
97.50
02/24/2021
GEN
73383*
TANGENTIAL DEVELOPMENT LLC
DEP
REFUND/APPLIED
235-000-
00
227.50
02/24/2021
GEN
73384*
TANGENTIAL DEVELOPMENT LLC
DEP
REFUND/APPLIED
235-000-
00
195.00
02/24/2021
GEN
73385*
TIFFANY WALLER OR JUSTIN PETERMAN
DEP
REFUND/APPLIED
235-000-
00
195.00
02/24/2021
GEN
73386*
TIMOTHY BEHR OR LAURIE BEHR
DEP
REFUND/APPLIED
235-000-
00
253.50
02/24/2021
GEN
73387*
TODD PETERSON OR CARLA PETERSON
DEP
REFUND/APPLIED
235-000-
00
344.50
02/24/2021
GEN
73388*
TRISTAN GLESENER
DEP
REFUND/APPLIED
235-000-
00
188.50
02/24/2021
GEN
73389*
TYLER NEUBARTH
DEP
REFUND/APPLIED
235-000-
00
227.50
03/25/2021 02:00
PM
CHECK DISBURSEMENT
REPORT FOR HUTCHINSON UTILITIES
Page 6/42
User: JMartig
CHECK DATE FROM
02/20/2021 - 03/25/2021
DE: Hutchinson
Utili
Check Date
Bank
Check #
Payee
Description
Account
Dept
Amount
Fund: 1 ELECTRIC
03/02/2021
GEN
759(E)*
CITIZENS BANK
Office Supplies
401-921-
08
90.18
03/02/2021
GEN
760(E)*
TASC
Prepaid HBA
174-000-
00
2,772.75
03/02/2021
GEN
768(E)
MISO
Accounts Payable - Miso
232-000-
00
51,216.37
Accounts Payable - Miso
232-000-
00
818.56
HECK GEN 768(E) TOTAL FOR FUND 1:
52,034.93
03/04/2021
GEN
73392*
A R ENGH HEATHING AND AIR COND,
Grounds - Materials
401-935-
08
139.02
03/04/2021
GEN
73393*4
ACE HARDWARE
Supplies
401-550-
01
24.34
Maint Power Prod Plant - Build
402-554-
01
46.73
Maintenance Other - Materials
402-554-
01
8.54
Line - Materials
402-594-
02
0.89
HECK GEN 73393 TOTAL FOR FUND 1:
80.50
03/04/2021
GEN
73394
AERODERIVATIVE GAS TURBINE
GASKET, T-48 (9379M93P01)
154-000-
00
153.00
GASKET, T-48 (9379M93P01)
154-000-
00
7.52
T48 PROBE BOLT, J644P07D
154-000-
00
60.00
T48 PROBE BOLT, J644P07D
154-000-
00
2.95
HECK GEN 73394 TOTAL FOR FUND 1:
223.47
03/04/2021
GEN
73395*
ALEXANDER LOPEZ
DEP REFUND/APPLIED
235-000-
00
32.50
03/04/2021
GEN
73396*
ALLISON OR JOHN BRANDENBURG
DEP REFUND/APPLIED
235-000-
00
71.50
03/04/2021
GEN
73397*
AMBER LEE OR MILISSA WILKERSON
DEP REFUND/APPLIED
235-000-
00
221.00
03/04/2021
GEN
73398*
AMY SCHMIT OR NAM BUI
DEP REFUND/APPLIED
235-000-
00
130.00
03/04/2021
GEN
73399*
ANNA WILLEMS OR ANTHONY FRANK
DEP REFUND/APPLIED
235-000-
00
162.50
03/04/2021
GEN
73400*
ANTHONY SCHWARZE OR JESSICA
DEP REFUND/APPLIED
235-000-
00
45.50
03/04/2021
GEN
73401*
ASHLEY OR CLINTON SILLIVENT
DEP REFUND/APPLIED
235-000-
00
211.25
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 7/42
Amount
Fund: 1 ELECTRIC
03/04/2021
GEN 73402*
ASHLEY PAEHLKE DEP REFUND/APPLIED
235-000-
00
276.25
03/04/2021
GEN 73403*
BAILEY HOECHST OR TRENTON HAMILTON DEP REFUND/APPLIED
235-000-
00
97.50
03/04/2021
GEN 73404*
BECKY ROY DEP REFUND/APPLIED
235-000-
00
71.50
03/04/2021
GEN 73405*4
BORDER STATES ELECTRIC SUPPLY STRAP, CONDUIT 1" HS 903 2 HOLE
154-000-
00
3.12
STRAP, CONDUIT 1" HS 903 2 HOLE
154-000-
00
0.01
OVER, STREET LIGHT
154-000-
00
620.09
BASEMENT, (GROUND SLEEVE), 3 PH JOT
154-000-
00
530.50
CONDUIT, SWEEP, 90 DEG, 5", PVC
154-000-
00
31.57
FUSE, ACORN, 5 AMP, GLR5
154-000-
00
29.50
TAPE, SUPER 33+ PROFESSIONAL GRADE
154-000-
00
89.
12
BLADE, RECIP SAW, LENX 9114R, 9" 14T
154-000-
00
19.54
BLADE, RECIP SAW, LENX 106R, 12" 6T
154-000-
00
25.52
GLOBE, TUBE MEMPHIS STYLE,
154-000-
00
738.89
BULB, 150W, HIS LU150/55 HIS LAMP 44043
154-000-
00
609.78
TAPE, VINYL MASTIC ROLL, 4" x 10 x
154-000-
00
63.29
WIPES, CLEANING, GRIM -AWAY, DISPENSER,
154-000-
00
79.
06
PHOTO EYE, TWIST LOCK,(FOR LED)
154-000-
00
68.03
PADLOCK, TRANSFORMER, STERLING 4019
154-000-
00
132.
92
CONDUIT, SWEEP, 90 DEG, 5", PVC
154-000-
00
15.78
FIXTURE, COBRA HEAD LED, AMERICAN
154-000-
00
588.08
FUSE, ACORN, 5 AMP, GLR5
154-000-
00
31.95
FUSE, ACORN, 5 AMP, GLR5
154-000-
00
0.01
TAPE, 88-SUPER-2X36YD
154-000-
00
65.86
SPLIT BOLT 48 KS-15 Cu BURNDY
154-000-
00
15.00
PHOTO EYE, TWIST LOB, 105-305 VOLT,
154-000-
00
826.
42
PHOTO EYE, TWIST LOB, 105-305 VOLT,
154-000-
00
0.02
CONDUCTOR, 44/0 15KV, SIR, AL
154-000-
00
8,121.20
CEMENT/SOLVENT, PVC
154-000-
00
6.40
JUNCTION BOX, 3 PH (600A), 30 X 66 X
154-000-
00
1,659.26
FUSE HOLDER, SHR BUSS, GODS
154-000-
00
79.
08
FUSE HOLDER, SHR BUSS, GODS
154-000-
00
0.01
CRIMPIT, 3/0 TO 4/0 SIR CU, YC28C28
154-000-
00
78.00
COUPLING, 5", PVC, CARLON E940P
154-000-
00
28.67
Sales Tax Receivable - New
186-000-
00
36.48
Sales Tax Receivable - New
186-000-
00
2.17
Sales Tax Receivable - New
186-000-
00
1.08
Sales Tax Receivable - New
186-000-
00
1.03
Sales Tax Receivable - New
186-000-
00
558.33
Sales Tax Receivable - New
186-000-
00
114.07
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check # Payee
Fund: 1 ELECTRIC
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Description Account Dept
Sales
Tax Receivable - New
186-000-
00
MISC.
INCOME - ELEC-REFUND REEL DEP
421-000-
00
Line -
Materials
402-594-
02
HECK
GEN 73405 TOTAL FOR FUND 1:
03/04/2021
GEN
73406*
BRAD PETERSON OR ROBIN PETERSON
DEP REFUND/APPLIED
03/04/2021
GEN
73407*
BRIANNA GIESE OR KURTISS LINDEE
DEP REFUND/APPLIED
03/04/2021
GEN
73408*
BURTON KULLHEM
DEP REFUND/APPLIED
03/04/2021
GEN
73409*
CARL OR REBECCA FREDRICKSON
DEP REFUND/APPLIED
03/04/2021
GEN
73410*
CATHERINE BERNARDY
DEP REFUND/APPLIED
03/04/2021
GEN
73411*
CHAD DUENOW
DEP REFUND/APPLIED
03/04/2021
GEN
73412*
CHERISH CARPENTER
DEP REFUND/APPLIED
03/04/2021
GEN
73413*
CHERISH CARPENTER
DEP REFUND/APPLIED
03/04/2021
GEN
73414*
CHRISTOPHER JAMES KASPER
DEP REFUND/APPLIED
03/04/2021
GEN
73415*4
CINTAS CORPORATION 4470
Uniforms & Laundry
UNIFORMS & LAUNDRY
HECK GEN 73415 TOTAL FOR FUND 1:
03/04/2021
GEN
73416*4
CITY OF HUTCHINSON
VEHICLE/EQUIPMENT FUEL -POWER
VEHICLES/EQUIPMENT FUEL-ELEC
Other Equipment - Materials
VEHICLES/EQUIPMENT FUEL-ADMIN 55/45
HECK GEN 73416 TOTAL FOR FUND 1:
03/04/2021
GEN
73417*
COLONIAL SUPPLEMENTAL INS CO
COLONIAL INSURANCE
03/04/2021
GEN
73418*
CONNER BRAND
DEP REFUND/APPLIED
235-000- 00
235-000- 00
235-000- 00
235-000- 00
235-000- 00
235-000- 00
235-000- 00
235-000- 00
235-000- 00
401-550- 01
401-588- 02
401-550- 01
401-588- 02
402-598- 02
401-935- 08
242-000- 00
235-000- 00
Page 8/42
Amount
7.34
(10,580.64)
(104.52)
4,592.02
139.75
65.00
58.50
162.50
39.00
32.50
65.00
52.00
156.00
548.81
286.43
835.24
158.94
1,262.26
14.95
1,506.22
82.48
162.50
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 9/42
Amount
Fund: 1 ELECTRIC
03/04/2021
GEN
73419
CORE & MAIN
Elec MTR 9S CL20 order spec 16902
107-370-
00
4,300.00
03/04/2021
GEN
73420*
COREY BEILKE
GET REFUND/APPLIED
235-000-
00
130.00
03/04/2021
GEN
73421*
CRAIG JEPSEN OR SABA JEPSEN
GET REFUND/APPLIED
235-000-
00
221.00
03/04/2021
GEN
73422*
CURT MILLER
GET REFUND/APPLIED
235-000-
00
48.75
03/04/2021
GEN
73423*
DALE FROEMMING OR HELEN FROEMMING
GET REFUND/APPLIED
235-000-
00
214.50
03/04/2021
GEN
73424*
DAMARIS GUTIERRES-OVERVIDES
GET REFUND/APPLIED
235-000-
00
178.75
03/04/2021
GEN
73425*
DAN JANSSEN
Cip - Residential
401-916-
07
25.00
03/04/2021
GEN
73426*
DAN MORROW OR LOVELY MORROW
GET REFUND/APPLIED
235-000-
00
260.00
03/04/2021
GEN
73427*
DAVE BAGNE OR MARY BAGNE
GET REFUND/APPLIED
235-000-
00
156.00
03/04/2021
GEN
73428*
DAVE CACKA OR JENNIFER CACKA
GET REFUND/APPLIED
235-000-
00
165.75
03/04/2021
GEN
73429*
DAVID BARDWELL
GET REFUND/APPLIED
235-000-
00
188.50
03/04/2021
GEN
73430*
DAVID MACH OR CARA MACH
GET REFUND/APPLIED
235-000-
00
370.50
03/04/2021
GEN
73431*
DAVID MUECKE
GET REFUND/APPLIED
235-000-
00
39.00
03/04/2021
GEN
73432*
DEB LANIGAN
GET REFUND/APPLIED
235-000-
00
65.00
03/04/2021
GEN
73433*
DENNIS HRUBY OR SANDY HRUBY
GET REFUND/APPLIED
235-000-
00
78.00
03/04/2021
GEN
73434*
DENNIS HRUBY OR SANDY HRUBY
GET REFUND/APPLIED
235-000-
00
117.00
03/04/2021
GEN
73435
DONALDSON COMPANY INC
FILTER, HYDRAULIC, DONALDSON - PART #
154-000-
00
425.32
Sales Tax Receivable - Replace
186-000-
00
29.24
HECK GEN 73435 TOTAL FOR FUND 1:
454.56
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 10/42
Amount
Fund: 1 ELECTRIC
03/04/2021
GEN
73436*
DREW JOHNSON
DEP
REFUND/APPLIED
235-000-
00
201.50
03/04/2021
GEN
73437*
EMILY DORSO
DEP
REFUND/APPLIED
235-000-
00
61.75
03/04/2021
GEN
73438*
EMILY DORSO
DEP
REFUND/APPLIED
235-000-
00
42.25
03/04/2021
GEN
73440*
ERIC PAPKE OR JENNIFER PAPKE
DEP
REFUND/APPLIED
235-000-
00
65.00
03/04/2021
GEN
73441*
ERIK RAMGREN
DEP
REFUND/APPLIED
235-000-
00
48.75
03/04/2021
GEN
73442*
ERVIN STAGE
DEP
REFUND/APPLIED
235-000-
00
39.00
03/04/2021
GEN
73443*
ETHAN KNICKREHM
DEP
REFUND/APPLIED
235-000-
00
113.75
03/04/2021
GEN
73444*
EVAN BUTLER
DEP
REFUND/APPLIED
235-000-
00
39.00
03/04/2021
GEN
73445*
EVAN PLOTZ OR GINA FLOOR
DEP
REFUND/APPLIED
235-000-
00
292.50
03/04/2021
GEN
73446*
GARRET MILLER
DEP
REFUND/APPLIED
235-000-
00
299.00
03/04/2021
GEN
73447*
CIA SAENZ
DEP
REFUND/APPLIED
235-000-
00
162.50
03/04/2021
GEN
73448*4
GOPHER STATE ONE -CALL INC
Line
- Materials
401-581-
02
6.08
03/04/2021
GEN
73449*
GREG FINK OR CYNTHIA FINK
DEP
REFUND/APPLIED
235-000-
00
52.00
03/04/2021
GEN
73451*
HARMONY HAWKINS
DEP
REFUND/APPLIED
235-000-
00
78.00
03/04/2021
GEN
73452*
HEIDI WERTZ
DEP
REFUND/APPLIED
235-000-
00
247.00
03/04/2021
GEN
73453*
HILLYARD/HUTCHINSON
Grounds
- Materials
401-935-
08
109.60
03/04/2021
GEN
73454*
HOPE FAMILY CHURCH
DEP
REFUND/APPLIED
235-000-
00
669.50
03/04/2021
GEN
73455*
HOPE FAMILY CHURCH
DEP
REFUND/APPLIED
235-000-
00
175.50
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 11/42
Amount
Fund: 1 ELECTRIC
03/04/2021
GEN
73456*
HUTCHFIELD SERVICES INC
Grounds - Outside Services
401-935-
08
1,112.73
03/04/2021
GEN
73457*
INNOVATIVE OFFICE SOLUTIONS
OFFICE SUPPLIES
401-921-
08
133.57
03/04/2021
GEN
734584
INTERSTATE DISTRIBUTION & MANFCT
Sales Tax Receivable - Replace
186-000-
00
4.21
Generator 41 Material
402-554-
01
61.20
CHECK GEN 73458 TOTAL FOR FUND 1:
65.41
03/04/2021
GEN
73459
JACK HOBBS OR TRISTAN HABERSTICH
OVERPAYMENTS
142-000-
00
73.74
03/04/2021
GEN
73460*
JACK ROBERTSON
DEP REFUND/APPLIED
235-000-
00
221.00
03/04/2021
GEN
73461*
JASON PAULSON
DEP REFUND/APPLIED
235-000-
00
286.00
03/04/2021
GEN
73462*
JEANETTE BENSON
DEP REFUND/APPLIED
235-000-
00
211.25
03/04/2021
GEN
73463*
JEFFERY A SCOTT
DEP REFUND/APPLIED
235-000-
00
32.50
03/04/2021
GEN
73464*
JEFFREY MARVAN OR AMBER ELLESTAD
DEP REFUND/APPLIED
235-000-
00
123.50
03/04/2021
GEN
73465*
JENNIFER ROSE
DEP REFUND/APPLIED
235-000-
00
221.00
03/04/2021
GEN
73466*
JENNIFER WRASPIR
DEP REFUND/APPLIED
235-000-
00
143.00
03/04/2021
GEN
73467*
JEREMY FLECK OR DEMIRA TAYLOR
DEP REFUND/APPLIED
235-000-
00
237.25
03/04/2021
GEN
73468*
JEREMY VARPNESS OR KATIE VARPNESS
DEP REFUND/APPLIED
235-000-
00
162.50
03/04/2021
GEN
73469*
JESUS PENA OR FLOR SANCHEZ
DEP REFUND/APPLIED
235-000-
00
175.50
03/04/2021
GEN
73470*
JILL SPRINGER
DEP REFUND/APPLIED
235-000-
00
71.50
03/04/2021
GEN
73471*
JODI WICK
DEP REFUND/APPLIED
235-000-
00
39.00
03/04/2021
GEN
73472*
JOE RATH
DEP REFUND/APPLIED
235-000-
00
162.50
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 12/42
Amount
Fund: 1 ELECTRIC
03/04/2021
GEN
73473
JOHN HENRY FOSTER
SEAL, SHAFT, VALVE, INLET
154-000-
00
140.00
Sales Tax Receivable - Replace
186-000-
00
9.63
HECK GEN 73473 TOTAL FOR FUND 1:
149.63
03/04/2021
GEN
73474*
JOHN PAULSON OR DEB PAULSON
GET REFUND/APPLIED
235-000-
00
221.00
03/04/2021
GEN
73475*
JON GOSSE OR ANDREA DAVIS
GET REFUND/APPLIED
235-000-
00
351.00
03/04/2021
GEN
73476*
JONATHAN COTTON OR KAYCE COTTON
GET REFUND/APPLIED
235-000-
00
39.00
03/04/2021
GEN
73477*
JORDAN BRUNDELL
GET REFUND/APPLIED
235-000-
00
58.50
03/04/2021
GEN
73478*
JOSEPH DEVNEY OR KATHLEEN DEVNEY
GET REFUND/APPLIED
235-000-
00
71.50
03/04/2021
GEN
73479*
JOSEPH WERTISH OR JILL WERTISH
GET REFUND/APPLIED
235-000-
00
182.00
03/04/2021
GEN
73480*
JOYCE KELLY
GET REFUND/APPLIED
235-000-
00
39.00
03/04/2021
GEN
73481*
JOYCE SCOTT
GET REFUND/APPLIED
235-000-
00
243.75
03/04/2021
GEN
73482*
JULIE KRUEGER
GET REFUND/APPLIED
235-000-
00
84.50
03/04/2021
GEN
73483*
JULIE PUDER
GET REFUND/APPLIED
235-000-
00
123.50
03/04/2021
GEN
73484*
JUSTIN HOESE
GET REFUND/APPLIED
235-000-
00
87.75
03/04/2021
GEN
73485*
KALLIOPE MILNE
GET REFUND/APPLIED
235-000-
00
42.25
03/04/2021
GEN
73486*
KATH ALOKOA OR CAROLEE ALOKOA
GET REFUND/APPLIED
235-000-
00
65.00
03/04/2021
GEN
73487*
KEEGAN STUBER
GET REFUND/APPLIED
235-000-
00
39.00
03/04/2021
GEN
73488*
KIRT RAYMOND
GET REFUND/APPLIED
235-000-
00
84.50
03/04/2021
GEN
73489
KRANZ LAWN & POWER
Power Equipment - Materials
402-598-
02
32.00
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 13/42
Amount
Fund: 1 ELECTRIC
03/04/2021
GEN
73490*
KRISTI THOMPSON-MUNN
GET REFUND/APPLIED
235-000-
00
162.50
03/04/2021
GEN
73491*
KYLE MELCHERT
GET REFUND/APPLIED
235-000-
00
211.25
03/04/2021
GEN
73492
L & P SUPPLY COMPANY
Power Equipment - Materials
402-598-
02
35.38
03/04/2021
GEN
73493*
LARRY MIXON
GET REFUND/APPLIED
235-000-
00
130.00
03/04/2021
GEN
73494*
LARRY MIXON
GET REFUND/APPLIED
235-000-
00
45.50
03/04/2021
GEN
73495*
LESIE to MAGNAN
GET REFUND/APPLIED
235-000-
00
188.50
03/04/2021
GEN
73496*
LINDA WINN
GET REFUND/APPLIED
235-000-
00
162.50
03/04/2021
GEN
73497*
LORA VOGELPOHL
GET REFUND/APPLIED
235-000-
00
65.00
03/04/2021
GEN
73498*
LORA VOGELPOHL
GET REFUND/APPLIED
235-000-
00
39.00
03/04/2021
GEN
73499*
MARKIE JOHNSON OR DAVID PLAMANN
GET REFUND/APPLIED
235-000-
00
52.00
03/04/2021
GEN
73500*
MARY BRISSE
GET REFUND/APPLIED
235-000-
00
175.50
03/04/2021
GEN
73501
MATHESON TRI-GAS INC
Generator 41 Material
402-554-
01
49.91
03/04/2021
GEN
73502*
MATHEW RICHARDS
GET REFUND/APPLIED
235-000-
00
32.50
03/04/2021
GEN
73503*
MATT FORCIER OR CHRISTINE FORCIER
GET REFUND/APPLIED
235-000-
00
308.75
03/04/2021
GEN
73504*
MATT SANDEEN
GET REFUND/APPLIED
235-000-
00
32.50
03/04/2021
GEN
73505*
MATTHEW SHAW OR DEANA SHAW
GET REFUND/APPLIED
235-000-
00
84.50
03/04/2021
GEN
735064
MCC ENERGY SOLUTIONS, LLC
I AM MANAGEMENT FEES
401-555-
02
3,900.00
IAM USAGE FEES
401-556-
03
3,050.00
CHECK GEN 73506 TOTAL FOR FUND 1:
6,950.00
03/04/2021
GEN
73507
MCLEOD COUNTY TREASURER
Street Lighting - Materials
402-596-
02
35.00
03/25/2021 02:00 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
User: JMartig CHECK DATE FROM 02/20/2021 - 03/25/2021
DE: Hutchinson Utili
Check Date Bank Check # Payee Description
Fund: 1 ELECTRIC
03/04/2021
GEN
73508*
MEDICA
HEALTH INSURANCE 85% ELEC
03/04/2021
GEN
73509*
MICHAEL J CAST OR NICOLE TOLLIFSON
DEP REFUND/APPLIED
03/04/2021
GEN
73510*
MICHAEL RASMUSSEN OR MOLLY
DEP REFUND/APPLIED
03/04/2021
GEN
73511*
MICHAEL STRAUMANN
DEP REFUND/APPLIED
03/04/2021
GEN
73512*
MN NCPERS
LIFE INSURANCE-PERA LIFE
03/04/2021
GEN
73513*
MONICA MEDIA
DEP REFUND/APPLIED
03/04/2021
GEN
73514*
MONICA SOPKOWIAK
DEP REFUND/APPLIED
03/04/2021
GEN
73515*
NICK GLASER OR AMANDA BERRY
DEP REFUND/APPLIED
03/04/2021
GEN
73516*4
NORTHERN STATES SUPPLY INC
Supplies
Line - Materials
HECK GEN 73516 TOTAL FOR FUND 1:
03/04/2021 GEN 73517* OSCAR SOTO
03/04/2021 GEN 73518 OXYGEN SERVICE COMPANY INC
03/04/2021 GEN 73519* PARI SWANSON
03/04/2021 GEN 73520* PATRICIA SCHMIDT
03/04/2021 GEN 73521* PATRICIA SCHMIDT
03/04/2021 GEN 73522* PATRICK MCCORMICK
03/04/2021 GEN 73523*4 PRO AUTO & TRANSMISSION REPAIR
03/04/2021 GEN 73524 QUADE ELECTRIC
DEP REFUND/APPLIED
MATERIALS -NITROGEN
DEP REFUND/APPLIED
DEP REFUND/APPLIED
DEP REFUND/APPLIED
DEP REFUND/APPLIED
VEHICLES - MATERIAL-ELEC
Maint Power Prod Plant - Build
Accessory Plant - Materials
HECK GEN 73524 TOTAL FOR FUND 1:
Account Dept
242-000- 00
235-000- 00
235-000- 00
235-000- 00
242-000- 00
235-000- 00
235-000- 00
235-000- 00
401-550- 01
401-581- 02
235-000- 00
402-574- 03
235-000- 00
235-000- 00
235-000- 00
235-000- 00
402-598- 02
402-554- 01
402-554- 01
Page 14/42
Amount
48,569.14
143.00
58.50
110.50
52.78
325.00
149.50
169.00
22.78
45.56
65.00
135.50
35.75
130.00
55.25
130.00
166.26
242.60
336.85
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 15/42
Amount
Fund: 1 ELECTRIC
03/04/2021
GEN
73525*
QUINNDARIUS JACKSON OR L THOMAS
DEP REFUND/APPLIED
235-000-
00
65.00
03/04/2021
GEN
73526*
BANDEE COATES OR VERONICA COATES
DEP REFUND/APPLIED
235-000-
00
91.00
03/04/2021
GEN
73527*
RELIANCE STANDARD LIFE -LIFE
LTD INSURANCE-80o ELEC
242-000-
00
1,515.11
LIFE INSURANCE-80o ELEC
242-000-
00
894.55
HECK GEN 73527 TOTAL FOR FUND 1:
2,409.66
03/04/2021
GEN
73528*
ROBERT BOLLINGMO OR SARAH
DEP REFUND/APPLIED
235-000-
00
227.50
03/04/2021
GEN
73529*
ROMAN LUTHENS
DEP REFUND/APPLIED
235-000-
00
39.00
03/04/2021
GEN
73530*
ROSA MEDIA VAZQUEZ
DEP REFUND/APPLIED
235-000-
00
201.50
03/04/2021
GEN
73531*
ROSA MEDIA VAZQUEZ
DEP REFUND/APPLIED
235-000-
00
162.50
03/04/2021
GEN
73532*
SALLY BEAUTY
DEP REFUND/APPLIED
235-000-
00
227.50
03/04/2021
GEN
73533*
SAMANTHA HERTELL
DEP REFUND/APPLIED
235-000-
00
149.50
03/04/2021
GEN
73534
SAMANTHA KUBISZEWSKI
OVERPAYMENTS
142-000-
00
39.24
03/04/2021
GEN
73535*
SAMANTHA SLATER
DEP REFUND/APPLIED
235-000-
00
91.00
03/04/2021
GEN
73536*
SARAH RADDATZ
DEP REFUND/APPLIED
235-000-
00
107.25
03/04/2021
GEN
73537
SCARCELY LTD
Maint Power Prod Plant - Build
402-554-
01
675.00
03/04/2021
GEN
73538*
SHANNON TIMPERIO
DEP REFUND/APPLIED
235-000-
00
48.75
03/04/2021
GEN
73539*
SHELLY GLESENER OR ADAM GLESENER
DEP REFUND/APPLIED
235-000-
00
195.00
03/04/2021
GEN
73541*
STEVE HANSEN
DEP REFUND/APPLIED
235-000-
00
338.00
03/04/2021
GEN
73542*
TERRY GRINDE
DEP REFUND/APPLIED
235-000-
00
269.75
03/04/2021
GEN
73543*
TIM BURLEY OR JENNIFER BURLEY
DEP REFUND/APPLIED
235-000-
00
117.00
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 16/42
Amount
Fund: 1 ELECTRIC
03/04/2021
GEN
73544*
TIM MACKEDANZ OR JAKE MACKEDANZ
DEP REFUND/APPLIED
235-000-
00
120.25
03/04/2021
GEN
73545*
TRACY BUSCHEL OR TIMOTHY BUSCHEL
DEP REFUND/APPLIED
235-000-
00
156.00
03/04/2021
GEN
73546
TRANSCAT
Fluke 750PA6 pressure module 0-100
107-346-
00
1,601.24
PP0202-6 calibration for 750PA6
107-346-
00
220.00
Sales Tax Receivable - Replace
186-000-
00
125.21
HECK GEN 73546 TOTAL FOR FUND 1:
1,946.45
03/04/2021
GEN
73547*
TRISHA REINITZ
DEP REFUND/APPLIED
235-000-
00
201.50
03/04/2021
GEN
73548*
VERIZON WIRELESS
TELEPHONE
401-921-
08
1,504.38
It Admin And Support
401-921-
08
2,339.97
HECK GEN 73548 TOTAL FOR FUND 1:
3,844.35
03/04/2021
GEN
73549*
VERONICA POMPA
DEP REFUND/APPLIED
235-000-
00
130.00
03/04/2021
GEN
73550*
VERONICA POMPA
DEP REFUND/APPLIED
235-000-
00
65.00
03/04/2021
GEN
73551*
VERONICA POMPA
DEP REFUND/APPLIED
235-000-
00
130.00
03/04/2021
GEN
73552*
WALLACE DAFFNER OR BARBARA DAFFNER
DEP REFUND/APPLIED
235-000-
00
182.00
03/04/2021
GEN
73553*
WHITNEY DURBIN OR SPENCER R DURBIN
DEP REFUND/APPLIED
235-000-
00
16.25
03/04/2021
GEN
73554*
WHITNEY DURBIN OR SPENCER R DURBIN
DEP REFUND/APPLIED
235-000-
00
221.00
03/04/2021
GEN
73555*
WILLIAM C LUECK III OR CHUCK LUECK
DEP REFUND/APPLIED
235-000-
00
71.50
03/04/2021
GEN
73556*
WILLIAM KILGORE
DEP REFUND/APPLIED
235-000-
00
117.00
03/04/2021
GEN
73557
ZIEGLER OIL ANALYSIS LAB
BOTTLE, OIL SAMPLE, 4SOS-12
154-000-
00
371.93
03/04/2021
GEN
754(E)*
ARGUS DENTAL
DENTAL INSURANCE -COBRA
242-000-
00
298.14
DENTAL INSURANCE-80o ELEC
242-000-
00
3,353.63
HECK GEN 754(E) TOTAL FOR FUND 1:
3,651.77
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 17/42
Amount
Fund: 1 ELECTRIC
03/09/2021
GEN
769(E)
MISO
Accounts Payable - Miso
232-000-
00
231,037.44
Accounts Payable - Miso
232-000-
00
847.70
HECK GEN 769(E) TOTAL FOR FUND 1:
231,885.14
03/12/2021
GEN
73559*
CARD SERVICES
Grounds - Materials
401-935-
08
10.40
03/12/2021
GEN
73561*4
CINTAS CORPORATION 4470
Uniforms & Laundry
401-550-
01
435.09
Uniforms & Laundry
401-550-
01
524.47
UNIFORMS & LAUNDRY
401-588-
02
293.43
UNIFORMS & LAUNDRY
401-588-
02
347.58
HECK GEN 73561 TOTAL FOR FUND 1:
1,600.57
03/12/2021
GEN
73562*
CITY OF HUTCHINSON
IT ADMIN AND SUPPORT 750
401-921-
08
4,967.12
03/12/2021
GEN
73563
COURTNEY BOHNEN
OVERPAYMENTS
142-000-
00
40.37
03/12/2021
GEN
73564
COURTNEY ZAJICEK
OVERPAYMENTS
142-000-
00
31.18
03/12/2021
GEN
73565
DITCH WITCH OF MN
Power Equipment - Materials
402-598-
02
218.10
Power Equipment - Materials
402-598-
02
88.87
HECK GEN 73565 TOTAL FOR FUND 1:
306.97
03/12/2021
GEN
73567*4
FASTENAL COMPANY
Uniforms & Laundry
401-550-
01
20.52
03/12/2021
GEN
73568
FORBES AUTO STORE
Vehicles - Material
402-554-
01
78.76
03/12/2021
GEN
73569
FREMONT INDUSTRIES INC
BIO-DISPERSANT, BIODISP2
154-000-
00
2,432.10
BIO-DISPERSANT, BIODISP2
154-000-
00
124.37
HECK GEN 73569 TOTAL FOR FUND 1:
2,556.47
03/12/2021
GEN
73570
GREAT RIVER ENERGY
PURCHASED POWER
401-555-
02
834.00
03/12/2021
GEN
73571
HILLYARD/HUTCHINSON
Supplies
401-550-
01
89.01
03/12/2021
GEN
73573*4
HUTCHINSON WHOLESALE SUPPLY CO
Vehicles - Material
402-598-
02
29.92
Other Equipment - Materials
402-598-
02
43.40
HECK GEN 73573 TOTAL FOR FUND 1:
73.32
03/12/2021
GEN
73574
INNOTION ENTERPRISES INC
OVERPAYMENTS
142-000-
00
68.02
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 18/42
Amount
Fund: 1 ELECTRIC
03/12/2021
GEN
73575*
INNOVATIVE OFFICE SOLUTIONS
OFFICE SUPPLIES
401-921-
08
94.54
03/12/2021
GEN
73576
JESSICA BRUSVEN
OVERPAYMENTS
142-000-
00
23.50
03/12/2021
GEN
73577
JOHN SANDBERG
OVERPAYMENTS
142-000-
00
1,000.00
03/12/2021
GEN
73579
LARRY HELLER
OVERPAYMENTS
142-000-
00
20.19
03/12/2021
GEN
73581
MERCEDES KARG
OVERPAYMENTS
142-000-
00
37.83
03/12/2021
GEN
73582*
MINNESOTA COMMERCE DEPT
Doc - Cip Assessment
401-916-
07
4,544.65
03/12/2021
GEN
73583
MIRATECH
GASKET, FLANGE, 160 X 110 X 1.5MM
154-000-
00
10.52
GASKET, FLANGE, 160 X 110 X 1.5MM
154-000-
00
0.31
RELAY, 24 V, PLC 24V
154-000-
00
22.46
RELAY, 24 V, PLC 24V
154-000-
00
0.67
NOZZLE, INJECTOR, DE75
154-000-
00
278.69
NOZZLE, INJECTOR, DE75
154-000-
00
8.30
CAP, AIR ADJUSTMENT, INJECTOR,
DE75
154-000-
00
133.45
CAP, AIR ADJUSTMENT, INJECTOR,
DE75
154-000-
00
3.97
RING, INJECTOR, (NOZZLE) DE75
154-000-
00
40.86
RING, INJECTOR, (NOZZLE) DE75
154-000-
00
1.22
SEAL, NOZZLE WASHER
154-000-
00
17.95
SEAL, NOZZLE WASHER
154-000-
00
0.53
SEAL, 3/8"
154-000-
00
9.72
SEAL, 3/8"
154-000-
00
0.29
SEAL, 1/4"
154-000-
00
6.00
SEAL, 1/4"
154-000-
00
0.18
FITTING, 3/4"-3/8"
154-000-
00
203.36
FITTING, 3/4"-3/8"
154-000-
00
6.05
FITTING, 3/8"-1/4"
154-000-
00
23.94
FITTING, 3/8"-1/4"
154-000-
00
0.71
PUMP HEAD, CONDENSATE
154-000-
00
467.22
PUMP HEAD, CONDENSATE
154-000-
00
13.91
FILTER, G1/4" SW8
154-000-
00
147.18
FILTER, G1/4" SW8
154-000-
00
4.38
TRANSMITTER, PRESSURE,-0.5/+4
BAR
154-000-
00
481.28
TRANSMITTER, PRESSURE,-0.5/+4
BAR
154-000-
00
14.
32
HECK GEN 73583 TOTAL FOR FUND
1:
1,897.47
03/12/2021
GEN
73585*
NUVERA
TELEPHONE
401-921-
08
1,947.27
TELEPHONE
401-921-
08
36.42
HECK GEN 73585 TOTAL FOR FUND
1:
1,983.69
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check # Payee
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Description
Fund: 1 ELECTRIC
03/12/2021 GEN 73586 NUVERA
03/12/2021 GEN 7358714 O'REILLY AUTOMOTIVE INC
Account Dept
Page 19/42
Amount
Cip- Commercial
401-916-
07
845.00
Supplies
401-550-
01
25.76
Supplies
401-550-
01
88.48
Power Equipment - Materials
402-598-
02
108.30
HECK GEN 73587 TOTAL FOR FUND 1:
222.54
03/12/2021
GEN
73588*4
OXYGEN SERVICE COMPANY INC
GLOVES, MID WELDING, REV-BM88-2XL
154-000-
00
20.46
GLOVES, MID WELDING, REV-BM88-2XL
154-000-
00
3.54
WIRE BUFFING WHEEL. 413131
154-000-
00
120.41
WIRE BUFFING WHEEL. 413131
154-000-
00
20.84
BLADE, BAND SAW, EBE 11 X 1 - 5
154-000-
00
84.46
BLADE, BAND SAW, EBE 11 X 1 - 5
154-000-
00
14. 62
Supplies
401-550-
01
88.20
MATERIALS -NITROGEN
402-574-
03
30.30
HECK GEN 73588 TOTAL FOR FUND 1:
382.83
03/12/2021
GEN
73589*
PREMIUM WATERS INC
OFFICE SUPPLIES -BOTTLED WATER
401-921-
08
15.91
03/12/2021
GEN
73591*4
RUNNING'S SUPPLY INC
Supplies
401-550-
01
37.18
Maintenance Other - Materials
402-554-
01
16.25
HECK GEN 73591 TOTAL FOR FUND 1:
53.43
03/12/2021
GEN
73593
TIFANI JOHNSON OR DAVID L PETERSEN
OVERPAYMENTS
142-000-
00
31.53
03/12/2021
GEN
73594*
TRANS
Lease/Service Agreements
401-921-
08
984.57
03/12/2021
GEN
73595*
UNITED PARCEL SERVICE
MAIL SERVICES - UPS, FEDEX
401-921-
08
173.80
03/12/2021
GEN
73596*4
WEST CENTRAL SANITATION INC
GENERATOR 41 WATER & SEWER
401-547-
01
92.03
Waste Disposal
401-550-
01
148.56
UTILITY EXPENSES - WATER/WASTE 55/45
401-930-
08
224.50
HECK GEN 73596 TOTAL FOR FUND 1:
465.09
03/12/2021
GEN
73597
YANNIS WALLACE
OVERPAYMENTS
142-000-
00
56.82
03/12/2021
GEN
755(E)*4
VISA
MISC. POWER PLANT EQUIPMENT -CAL
107-346-
00
3,316.82
MISC. POWER PLANT EQUIPMENT-N PAK
107-346-
00
4,233.84
UNIFORMS & LAUNDRY -SWEATSHIRT HIETTMAN
401-550-
01
99.98
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 20/42
Amount
Fund: 1 ELECTRIC
MAINT POWER PROD PLANT - BUILD -SUPPLIES
402-554-
01
739.80
GENERATOR 41 MATERIAL -UNIT 1 REPAIRS
402-554-
01
702.03
GENERATOR 46 MATERIAL -WATER PUMP SEAL
402-554-
01
4, 105.60
VEHICLES - MATERIAL -FUEL
402-554-
01
43.63
MAINTENANCE OTHER - MATERIAL-UTITLTY
402-554-
01
104.62
UNIFORMS & LAUNDRY -SWEATSHIRT DION
401-588-
02
279.
00
UNIFORMS & LAUNDRY -BOOTS R ELLENSON
401-588-
02
202.46
POWER EQUIP - MATERIALS -LEVER VALVE -OIL
402-598-
02
224.87
TELEPHONE -SUPPLIES
401-921-
08
61.40
OFFICE SUPPLIES -POWER STRIP
401-921-
08
15.43
OFFICE SUPPLIES
401-921-
08
49.53
REGULATORY EXP-TIER II CHEM INVENTORY
401-928-
08
204.98
GROUNDS - MATERIALS -VALVE ACTUATOR
401-935-
08
168.50
HECK GEN 755(E) TOTAL FOR FUND 1:
14,552.49
03/12/2021
GEN
764(E)
MISO
SCHEDULE 26
401-565-
03
11,931.17
SCHEDULE 26A
401-565-
03
35,001.82
HECK GEN 764(E) TOTAL FOR FUND 1:
46,932.99
03/12/2021
GEN
765(E)
MISO
SCEHDULE 1
401-565-
03
3,556.04
SCHEDULE 2
401-565-
03
10,182.07
SCHEDULE 26
401-565-
03
168.60
SCHEDULE 26A
401-565-
03
20.78
SCHEDULE 10
401-565-
03
79.32
HECK GEN 765(E) TOTAL FOR FUND 1:
14,006.81
03/12/2021
GEN
766(E)
MISO
SCHEDULE 10
401-565-
03
5,267.94
03/16/2021
GEN
770(E)
MISO
Accounts Payable - Miso
232-000-
00
38,241.80
Accounts Payable - Miso
232-000-
00
824.77
HECK GEN 770(E) TOTAL FOR FUND 1:
39,066.57
03/18/2021
GEN
73601*
AARON SHIMER
DEP REFUND/APPLIED
235-000-
00
32.50
03/18/2021
GEN
73602
ADVANCED PROCESS
SOLUTIONS GAUGE, 0-15, 2 1/2", 1/4" BOTTOM
154-000-
00
239.14
03/18/2021
GEN
73603*
ALLEGRA NOVOTNY
DEP REFUND/APPLIED
235-000-
00
191.75
03/18/2021
GEN
73604
APRIL KALSCHEUER
AND J KALSCHEUER OVERPAYMENTS
142-000-
00
7.20
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check # Payee
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Description
Fund: 1 ELECTRIC
03/18/2021 GEN 73605* AUSTIN HAMRE
03/18/2021 GEN 73606* AUSTIN WIRZ OR JAYDEN MUELLNER
03/18/2021 GEN 73607* BORDER STATES ELECTRIC SUPPLY
03/18/2021 GEN 73608 BRANDON JOHNSON
03/18/2021 GEN 73609* BROCK GASOW
03/18/2021 GEN 73610 CAMERON BEILKE
03/18/2021 GEN 73611* CARIBOU COFFEE COMPANY INC
03/18/2021 GEN 73612 CARLY'S SHOE STORE
03/18/2021 GEN 73614 DROPTINE PROPERTIES
03/18/2021 GEN 73615 DUANE HEIER
03/18/2021 GEN 73616 FASTENAL COMPANY
03/18/2021 GEN 73617 FEDEX
03/18/2021 GEN 73618 HARLIE DODGE
03/18/2021 GEN 73619*4 HILLYARD/HUTCHINSON
Account Dept
DEP REFUND/APPLIED
235-000-
00
DEP REFUND/APPLIED
235-000-
00
500 MCM CU 15KV 220M 133 EPR MV105
107-362-
00
CONDUIT, 5" X 10, PVC, SCH 40
154-000-
00
ELL, 1/0, 15KV 1STR-1/OSOL, .70-.91,
154-000-
00
BULB, 150W, HIS LU150/55 HIS LAMP 44043
154-000-
00
BULB, 150W, HIS LU150/55 HIS LAMP 44043
154-000-
00
PHOTO EYE, COMPACT, 120 VAC AA105, AREA
154-000-
00
PHOTO EYE, COMPACT, 120 VAC AA105, AREA
154-000-
00
Sales Tax Receivable - New
186-000-
00
Sales Tax Receivable - New
186-000-
00
Sales Tax Receivable - New
186-000-
00
HECK GEN 73607 TOTAL FOR FUND 1:
OVERPAYMENTS
142-000-
00
DEP REFUND/APPLIED
235-000-
00
OVERPAYMENTS
142-000-
00
DEP REFUND/APPLIED
235-000-
00
Uniforms & Laundry
401-588-
02
Cip- Commercial
401-916-
07
OVERPAYMENTS
142-000-
00
Materials
401-588-
02
Generator 46 Material
402-554-
01
Generator 47 Material
402-554-
01
HECK GEN 73617 TOTAL FOR FUND 1:
OVERPAYMENTS
142-000-
00
Supplies
401-550-
01
Supplies
401-550-
01
Grounds - Materials
401-935-
08
Grounds - Materials
401-935-
08
HECK GEN 73619 TOTAL FOR FUND 1:
Page 21/42
Amount
178.75
78.00
7,925.76
286.20
527.40
2,307.00
0.04
720.13
0.01
19.69
544.84
11.42
130.00
12.34
1,137.50
164.99
3,332.00
32.82
79.83
24.02
4.17
65.43
40.92
76.75
234.53
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 22/42
Amount
Fund: 1 ELECTRIC
03/18/2021
GEN
73620
HIYWOT KERYO
OVERPAYMENTS
142-000-
00
39.11
03/18/2021
GEN
73621
ISAAC WHEELER
OVERPAYMENTS
142-000-
00
29.
64
03/18/2021
GEN
73622*
JAMES CHAPMAN
DEP REFUND/APPLIED
235-000-
00
240.50
03/18/2021
GEN
73623
JENNIFER DURHAM
OVERPAYMENTS
142-000-
00
178.32
03/18/2021
GEN
73624*
JLR GARAGE DOOR SERVICE INC
Grounds - Materials
401-935-
08
247.50
03/18/2021
GEN
73625*
KEVIN SCAIFE
DEP REFUND/APPLIED
235-000-
00
45.50
03/18/2021
GEN
73626
KIERSTEN JENNEKE
OVERPAYMENTS
142-000-
00
5.92
03/18/2021
GEN
73627*
KRISTEN MATTHEWS
DEP REFUND/APPLIED
235-000-
00
91.00
03/18/2021
GEN
73629*
NORTHERN BUSINESS PRODUCTS
Glides for HON Motivate Stacking Chair
401-930-
08
62.52
03/18/2021
GEN
73630
OAK HEIGHTS COVENANT CHURCH
Cip- Commercial
401-916-
07
1,275.75
03/18/2021
GEN
73631*
RACHEL KRIESE
DEP REFUND/APPLIED
235-000-
00
58.50
03/18/2021
GEN
73632*
ROBERT BROOKS OR CADI BROOKS
DEP REFUND/APPLIED
235-000-
00
32.50
03/18/2021
GEN
73633*
ROBERT L BUSTAMANTE OR L ABRHAMSON
DEP REFUND/APPLIED
235-000-
00
71.50
03/18/2021
GEN
73634*
SHIRLEY WESTALL
DEP REFUND/APPLIED
235-000-
00
45.50
03/18/2021
GEN
73635
TANNER WEAVER
OVERPAYMENTS
142-000-
00
129.32
03/18/2021
GEN
73636*
TARA KLOECKL-ASHTON
DEP REFUND/APPLIED
235-000-
00
26.00
03/18/2021
GEN
73637
TARA YOUNG
OVERPAYMENTS
142-000-
00
13.65
03/18/2021
GEN
73639
TRAVIS BARCLAY OR S O'DELL
OVERPAYMENTS
142-000-
00
12.30
03/18/2021
GEN
73640*
UIS/SOURCECORP
COLLECTION - MATERIALS
401-903-
06
1,800.34
03/18/2021
GEN
73641*
ZACHERY DUPPONG
DEP REFUND/APPLIED
235-000-
00
26.00
03/19/2021
GEN
757(E)*
CETERA INVESTMENT SERVICES LLC
Cetera Investments
136-000-
00
2,100.00
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check # Payee
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Description
Fund: 1 ELECTRIC
03/22/2021 GEN 763(E) MRES
03/23/2021 GEN 756(E)* MINNESOTA REVENUE
03/25/2021 GEN 761(E)*4 BP CANANDA ENERGY SOLUTIONS
03/25/2021 GEN 762(E)* POINT & PAY
Account Dept
Page 23/42
Amount
Purchased
Power
401-555-
02
935,540.15
State Sales
Tax
242-000-
00
67,047.00
City Sales
Tax
242-000-
00
4,846.00
COUNTY SALES
TAX
242-000-
00
4, 846.00
HECK GEN
756(E) TOTAL FOR FUND 1:
76,739.00
GENERATOR
41 NATURAL
GAS
401-547-
01
450.00
Generator
41 Aux Boiler
401-547-
01
221.36
GENERATOR
43 NATURAL
GAS
401-547-
01
34.62
GENERATOR
44 NATURAL
GAS
401-547-
01
34.
62
Generator
44 Natural
Gas
401-547-
01
46.25
GENERATOR
45 NATURAL
GAS
401-547-
01
69.23
GENERATOR
45 NATURAL
GAS
401-547-
01
81, 824.36
Generator
46 Fuel Oil
401-547-
01
84.37
Generator
47 Natural
Gas
401-547-
01
84.37
Generator
47 Natural
Gas
401-547-
01
12,456.61
Generator
49 Natural
Gas
401-547-
01
216.34
Utility Expenses
- Water/Waste
401-930-
08
16,122.49
HECK GEN 761(E) TOTAL FOR FUND 1: 111,644.62
Collection - Materials 401-903- 06 2,630.30
Total for fund 1 ELECTRIC 1,943,773.66
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 24/42
Amount
Fund: 2 GAS
02/22/2021
GEN
745(E)*
POINT & PAY
METER READING - MATERIALS
401-903-
06
2, 168.49
02/23/2021
GEN
753(E)*
MINNESOTA REVENUE
State Sales Tax
242-000-
00
15,476.00
City Sales Tax
242-000-
00
1,091.00
COUNTY SALES TAX
242-000-
00
1,091.00
HECK GEN 753(E) TOTAL FOR FUND 2:
17,658.00
02/24/2021
GEN
73305*
ADAM MARKGRAF
DEP REFUND/APPLIED
235-000-
00
61.25
02/24/2021
GEN
73306*
AMBER MCCLURE
Cip - Residential
401-916-
07
50.00
02/24/2021
GEN
73307*
ANDREW OR ASHLEY ROSENGREN
DEP REFUND/APPLIED
235-000-
00
129.50
02/24/2021
GEN
73308*
ANTHONY KENDRICK
DEP REFUND/APPLIED
235-000-
00
56.00
02/24/2021
GEN
73310
BOB FLEMMING
Cip - Residential
401-916-
07
400.00
02/24/2021
GEN
73311*4
BRANDED SOLUTIONS
Uniforms & Laundry
401-880-
04
171.31
02/24/2021
GEN
73312*
BREANNE TASCHE
DEP REFUND/APPLIED
235-000-
00
35.00
02/24/2021
GEN
73313*
BRIAN ROSENBERGER
DEP REFUND/APPLIED
235-000-
00
87.50
02/24/2021
GEN
73314*
BRITTANY STORK
DEP REFUND/APPLIED
235-000-
00
31.50
02/24/2021
GEN
73316
CLINT BERGMANN
Cip - Residential
401-916-
07
350.00
02/24/2021
GEN
73317*
CYNTHIA GREGORIUS
DEP REFUND/APPLIED
235-000-
00
35.00
02/24/2021
GEN
73318*
CYNTHIA GREGORIUS
DEP REFUND/APPLIED
235-000-
00
52.50
02/24/2021
GEN
73319*
DANIEL CROTTEAU
Cip - Residential
401-916-
07
350.00
02/24/2021
GEN
73320*
DANNALE KRUEGER OR MATTHEW KRUEGER
DEP REFUND/APPLIED
235-000-
00
87.50
02/24/2021
GEN
73321*
DANNY MASICA
DEP REFUND/APPLIED
235-000-
00
28.00
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 25/42
Amount
Fund: 2 GAS
02/24/2021
GEN
73322*
DANYELLE COX
DEP REFUND/APPLIED
235-000-
00
77.00
02/24/2021
GEN
73323*
DEONNA BANKS
DEP REFUND/APPLIED
235-000-
00
80.50
02/24/2021
GEN
73324*
DYLAN BURCH
DEP REFUND/APPLIED
235-000-
00
127.75
02/24/2021
GEN
73325*
EVERETT BRYANT OR SARAH RADUNZ
DEP REFUND/APPLIED
235-000-
00
70.00
02/24/2021
GEN
73326*
GIDEON KRIENKE
DEP REFUND/APPLIED
235-000-
00
17.50
02/24/2021
GEN
73328*
HILDA JIMENEZ
DEP REFUND/APPLIED
235-000-
00
105.00
02/24/2021
GEN
73329*4
HILLYARD/HUTCHINSON
Materials
401-874-
04
66.69
Grounds - Materials
401-935-
08
11.05
HECK GEN 73329 TOTAL FOR FUND 2:
77.74
02/24/2021
GEN
73330*
ISABELLA JACKSON
DEP REFUND/APPLIED
235-000-
00
24.50
02/24/2021
GEN
73331*
JACALYNN MIELKE OR JANELLE MIELKE
DEP REFUND/APPLIED
235-000-
00
108.50
02/24/2021
GEN
73332*
JASON BAUNE OR BRENDA BAUNE
DEP REFUND/APPLIED
235-000-
00
43.75
02/24/2021
GEN
73333*
JENAPHER BLAIR
DEP REFUND/APPLIED
235-000-
00
122.50
02/24/2021
GEN
73334*
JEREMY MESSNER
DEP REFUND/APPLIED
235-000-
00
119.00
02/24/2021
GEN
73335*
JERROD WECKMAN OR ASHLEY LUDEWIG
DEP REFUND/APPLIED
235-000-
00
29.75
02/24/2021
GEN
73336*
JERROD WECKMAN OR ASHLEY LUDEWIG
DEP REFUND/APPLIED
235-000-
00
96.25
02/24/2021
GEN
73337*
JESSICA MILLER
DEP REFUND/APPLIED
235-000-
00
52.50
02/24/2021
GEN
73338*
JETTA MYLLYKANGAS
DEP REFUND/APPLIED
235-000-
00
82.25
02/24/2021
GEN
73339*
JILL MILLER
DEP REFUND/APPLIED
235-000-
00
70.00
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 26/42
Amount
Fund: 2 GAS
02/24/2021
GEN
73340*
JODY LANGAN
DEP
REFUND/APPLIED
235-000-
00
112.00
02/24/2021
GEN
73341*
JORDAN KEIL
DEP
REFUND/APPLIED
235-000-
00
35.00
02/24/2021
GEN
73342*
JORDAN TESSMER
DEP
REFUND/APPLIED
235-000-
00
26.25
02/24/2021
GEN
73343*
JORDAN TESSMER
DEP
REFUND/APPLIED
235-000-
00
47.25
02/24/2021
GEN
73344*
JOSEPH THORNE OR JESSICA CONLIN
DEP
REFUND/APPLIED
235-000-
00
105.00
02/24/2021
GEN
73345*
JOSEPH THORNE OR JESSICA CONLIN
DEP
REFUND/APPLIED
235-000-
00
61.25
02/24/2021
GEN
73346*
JOY NUNVAR
DEP
REFUND/APPLIED
235-000-
00
122.50
02/24/2021
GEN
73347*
JUSTIN KBABY OR ANNA KBABY
DEP
REFUND/APPLIED
235-000-
00
42.00
02/24/2021
GEN
73348*
JUSTIN KBABY OR ANNA KBABY
DEP
REFUND/APPLIED
235-000-
00
45.50
02/24/2021
GEN
73349*
JUSTIN SCHMIDT
DEP
REFUND/APPLIED
235-000-
00
175.00
02/24/2021
GEN
73350*
KATIE M LENE OR JUSTIN LENE
DEP
REFUND/APPLIED
235-000-
00
42.00
02/24/2021
GEN
73351*
KRAIG KELLNER
DEP
REFUND/APPLIED
235-000-
00
126.00
02/24/2021
GEN
73352*
KRISTINA IBARBA
DEP
REFUND/APPLIED
235-000-
00
98.00
02/24/2021
GEN
73353*
KYLE BAYSINGER
DEP
REFUND/APPLIED
235-000-
00
49.00
02/24/2021
GEN
73354*
LEE STOLTZ OR BRENDA STOLTZ
DEP
REFUND/APPLIED
235-000-
00
105.00
02/24/2021
GEN
73355*
LINDA RIKKE
DEP
REFUND/APPLIED
235-000-
00
21.00
02/24/2021
GEN
73356*
MARCO TECHNOLOGIES, LLC
OFFICE
SUPPLIES
401-921-
08
107.74
02/24/2021
GEN
73358*
MATT JASKOWIAK OR AMY JASKOWIAK
DEP
REFUND/APPLIED
235-000-
00
117.25
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 27/42
Amount
Fund: 2 GAS
02/24/2021
GEN
73359*
MELANIE OR ISAIAH SCHROEDER
DEP REFUND/APPLIED
235-000-
00
136.50
02/24/2021
GEN
73360*
MICHAEL BELLO
DEP REFUND/APPLIED
235-000-
00
87.50
02/24/2021
GEN
73361*
MICHAEL GAUDETTE
DEP REFUND/APPLIED
235-000-
00
119.00
02/24/2021
GEN
73363*
MIKE J MILLER
DEP REFUND/APPLIED
235-000-
00
52.50
02/24/2021
GEN
73365*
NICHOLAS SCHATZ
DEP REFUND/APPLIED
235-000-
00
52.50
02/24/2021
GEN
73366*
NICK MAAHS
DEP REFUND/APPLIED
235-000-
00
49.00
02/24/2021
GEN
73367
OXYGEN SERVICE COMPANY INC
Materials
401-874-
04
683.59
Materials
401-874-
04
277.54
HECK GEN 73367 TOTAL FOR FUND 2:
961.13
02/24/2021
GEN
73368*
PAUL PETERSON OR TIFFANY PETERSON
DEP REFUND/APPLIED
235-000-
00
133.00
02/24/2021
GEN
73369*
PETER BOLLING OR PANDORA BOLLONG
DEP REFUND/APPLIED
235-000-
00
140.00
02/24/2021
GEN
73370*
RAYMOND J LAWAY
DEP REFUND/APPLIED
235-000-
00
45.50
02/24/2021
GEN
73371*
REBECKA KNUDSON OR TRAVIS KNUDSON
DEP REFUND/APPLIED
235-000-
00
105.00
02/24/2021
GEN
73372*
RICHARD HANLEY
DEP REFUND/APPLIED
235-000-
00
112.00
02/24/2021
GEN
73373*
ROGER AHLBRECHT OR SHARON KRUG
DEP REFUND/APPLIED
235-000-
00
77.00
02/24/2021
GEN
73374*
ROSS CARRIGAN
DEP REFUND/APPLIED
235-000-
00
92.75
02/24/2021
GEN
73375*
SANDRA VAUGHN
DEP REFUND/APPLIED
235-000-
00
21.00
02/24/2021
GEN
73376*
SARAH FORBES
DEP REFUND/APPLIED
235-000-
00
36.75
02/24/2021
GEN
73377*
SARAH STOVERN
DEP REFUND/APPLIED
235-000-
00
35.00
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 28/42
Amount
Fund: 2 GAS
02/24/2021
GEN
73378*
SETH BEEBE
DEP REFUND/APPLIED
235-000-
00
42.00
02/24/2021
GEN
73379
SHARON BOETTCHER
Cip - Residential
401-916-
07
400.00
02/24/2021
GEN
73380*
SHARON ROGERS
DEP REFUND/APPLIED
235-000-
00
171.50
02/24/2021
GEN
73381*
SKYLAR HOPKINS
DEP REFUND/APPLIED
235-000-
00
110.25
02/24/2021
GEN
73382*
STEVE WEIGEL OR FONDA WEIGEL
DEP REFUND/APPLIED
235-000-
00
52.50
02/24/2021
GEN
73383*
TANGENTIAL DEVELOPMENT LLC
DEP REFUND/APPLIED
235-000-
00
122.50
02/24/2021
GEN
73384*
TANGENTIAL DEVELOPMENT LLC
DEP REFUND/APPLIED
235-000-
00
105.00
02/24/2021
GEN
73385*
TIFFANY WALLER OR JUSTIN PETERMAN
DEP REFUND/APPLIED
235-000-
00
105.00
02/24/2021
GEN
73386*
TIMOTHY BEHR OR LAURIE BEHR
DEP REFUND/APPLIED
235-000-
00
136.50
02/24/2021
GEN
73387*
TODD PETERSON OR CARLA PETERSON
DEP REFUND/APPLIED
235-000-
00
185.50
02/24/2021
GEN
73388*
TRISTAN GLESENER
DEP REFUND/APPLIED
235-000-
00
101.50
02/24/2021
GEN
73389*
TYLER NEUBARTH
DEP REFUND/APPLIED
235-000-
00
122.50
03/02/2021
GEN
759(E)*
CITIZENS BANK
Office Supplies
401-921-
08
90.17
03/02/2021
GEN
760(E)*
TASC
Prepaid HBA
174-000-
00
924.25
03/04/2021
GEN
73392*
A R ENGH HEATHING AND AIR COND,
Grounds - Materials
401-935-
08
46.34
03/04/2021
GEN
73393*4
ACE HARDWARE
Materials
401-874-
04
90.33
Materials
402-892-
04
7.47
Other Equipment - Materials
402-895-
04
17.48
HECK GEN 73393 TOTAL FOR FUND 2:
115.28
03/04/2021
GEN
73395*
ALEXANDER LOPEZ
DEP REFUND/APPLIED
235-000-
00
17.50
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 29/42
Amount
Fund: 2 GAS
03/04/2021
GEN
73396*
ALLISON OR JOHN BRANDENBURG
DEP REFUND/APPLIED
235-000-
00
38.50
03/04/2021
GEN
73397*
AMBER LEE OR MILISSA WILKERSON
DEP REFUND/APPLIED
235-000-
00
119.00
03/04/2021
GEN
73398*
AMY SCHMIT OR NAM BUI
DEP REFUND/APPLIED
235-000-
00
70.00
03/04/2021
GEN
73399*
ANNA WILLEMS OR ANTHONY FRANK
DEP REFUND/APPLIED
235-000-
00
87.50
03/04/2021
GEN
73400*
ANTHONY SCHWARZE OR JESSICA
DEP REFUND/APPLIED
235-000-
00
24.50
03/04/2021
GEN
73401*
ASHLEY OR CLINTON SILLIVENT
DEP REFUND/APPLIED
235-000-
00
113.75
03/04/2021
GEN
73402*
ASHLEY PAEHLKE
DEP REFUND/APPLIED
235-000-
00
148.75
03/04/2021
GEN
73403*
BAILEY HOECHST OR TRENTON HAMILTON
DEP REFUND/APPLIED
235-000-
00
52.50
03/04/2021
GEN
73404*
BECKY ROY
DEP REFUND/APPLIED
235-000-
00
38.50
03/04/2021
GEN
73405*4
BORDER STATES ELECTRIC SUPPLY
90 Degree Reducing Weld Elbow, 3" x 2",
107-385-
00
96.90
Reducing Weld Tee, 3" Run x 2" Branch,
107-385-
00
52.41
TEE, WELD FITTING, STRAIGHT, 2", SMLS,
154-000-
00
58.59
FLANGE, WELD NECK, FLAT FACED , 150
154-000-
00
59.13
NIPPLE, 1/2" X 2", BM, STD, SMLS, TEE
154-000-
00
7.37
NIPPLE, 3/4" X 1 1/2", BM, STD, SMLS,
154-000-
00
2.56
NIPPLE, 3/4" X 6", BM, STD, SMLS, TEE
154-000-
00
18.14
NIPPLE, 1" X 5 1/2", BM, STD, SMLS, TEE
154-000-
00
37.30
NIPPLE, 3/4" X 2", BM, STD, SMLS, TEE
154-000-
00
10.69
NIPPLE, 3/4" X 2 1/2", BM, STD, SMLS,
154-000-
00
6.03
NIPPLE, 1" X 3", BM, STD, SMLS, TEE
154-000-
00
29.03
NIPPLE, 3/4" X 4 1/2", BM, STD, SMLS,
154-000-
00
2.30
NIPPLE, 3/4" X 3", STD, BM, SMLS, TEE
154-000-
00
10.10
REDUCER, SWAGE, 2" X 1", STD, BLE X ISE
154-000-
00
55.30
FLANGE, WELD NECK, FLAT FACED , 150
154-000-
00
69.71
FITTING, WELD STOP 2", LOW PRESSURE
154-000-
00
198.36
BUSHING, HEX, ELK STL, 1" X 3/4"
154-000-
00
6.77
NIPPLE, 3/4" X 1 1/2", BM, STD, SMLS,
154-000-
00
5.13
NIPPLE, 3/4" X 5", BM, STD, SMLS, TEE
154-000-
00
15.71
BUSHING, HEX, ELK STL, 1/2" X 1/4"
154-000-
00
3.19
VALVE, NEEDLE, 1/4", O-RING STYLE,
154-000-
00
337.70
NIPPLE, 1/2" X 3 1/2", BM, STD, SMLS,
154-000-
00
5.14
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 30/42
Amount
Fund: 2 GAS
VALVE, BALL, 4" WELD X WELD,
154-000-
00
748.13
PRIMER, TEMCOAT 3000, ANTICORROSION,
154-000-
00
49.
07
COUPLING, 3/4" IPS, EF, MDPE
154-000-
00
334.08
BRACKET, METER MOUNTING, W/ 69" POST
154-000-
00
248.30
RISER, TRANSITION, ANODELESS FLEX, 3/4"
154-000-
00
1,643.20
FITTING, WELD STOP 4", LOW PRESSURE
154-000-
00
738.66
FLUID, LEAK DETECTION, TYPE III,
154-000-
00
31.40
NIPPLE, 1" X 2", BM, STD, SMLS, TEE
154-000-
00
16.60
NIPPLE, 1" X 2", BM, STD, SMLS, TEE
154-000-
00
1.14
NIPPLE, 3/4" X 6", BM, STD, SMLS, TEE
154-000-
00
5.66
NIPPLE, 3/4" X 6", BM, STD, SMLS, TEE
154-000-
00
0.39
NIPPLE, 3/4" X 3 1/2", BM, STD, SMLS,
154-000-
00
10.74
NIPPLE, 3/4" X 3 1/2", BM, STD, SMLS,
154-000-
00
0.74
NIPPLE, 3/4" X 2 1/2", BM, STD, SMLS,
154-000-
00
4.23
NIPPLE, 3/4" X 2 1/2", BM, STD, SMLS,
154-000-
00
0.29
NIPPLE, 3/4" X 5 1/2", BM, STD, SMLS,
154-000-
00
15.84
NIPPLE, 3/4" X 5 1/2", BM, STD, SMLS,
154-000-
00
1.09
NIPPLE, 3/4" X 4 1/2", BM, STD, SMLS,
154-000-
00
10.75
NIPPLE, 3/4" X 4 1/2", BM, STD, SMLS,
154-000-
00
0.74
VALVE, METER, 1", INS, LOCKWING, PLG
154-000-
00
120.
32
VALVE, NEEDLE, 1/2", O-RING STYLE,
154-000-
00
460.16
PIPE, 3/4" IPS, 2406 MDPE, DR 11, 500
154-000-
00
1,023.00
MATERIALS -WILL BE REFUNDED
401-874-
04
171.39
Materials
402-892-
04
(170.63)
CHECK GEN 73405 TOTAL FOR FUND 2:
6,552.85
03/04/2021
GEN 73406*
BRAD PETERSON OR ROBIN PETERSON
DEP REFUND/APPLIED
235-000-
00
75.25
03/04/2021
GEN 73407*
BRIANNA GIESE OR KURTISS LINDEE
DEP REFUND/APPLIED
235-000-
00
35.00
03/04/2021
GEN 73408*
BURTON KULLHEM
DEP REFUND/APPLIED
235-000-
00
31.50
03/04/2021
GEN 73409*
CARL OR REBECCA FREDRICKSON
DEP REFUND/APPLIED
235-000-
00
87.50
03/04/2021
GEN 73410*
CATHERINE BERNARDY
DEP REFUND/APPLIED
235-000-
00
21.00
03/04/2021
GEN 73411*
CHAD DUENOW
DEP REFUND/APPLIED
235-000-
00
17.50
03/04/2021
GEN 73412*
CHERISH CARPENTER
DEP REFUND/APPLIED
235-000-
00
35.00
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 31/42
Amount
Fund: 2 GAS
03/04/2021
GEN
73413*
CHERISH CARPENTER
GET REFUND/APPLIED
235-000-
00
28.00
03/04/2021
GEN
73414*
CHRISTOPHER JAMES KASPER
GET REFUND/APPLIED
235-000-
00
84.00
03/04/2021
GEN
73415*4
CINTAS CORPORATION 4470
UNIFORMS & LAUNDRY
401-880-
04
210.85
03/04/2021
GEN
73416*4
CITY OF HUTCHINSON
VEHICLE/EQUIPMENT FUEL -GAS
401-880-
04
1,055.46
VEHICLES/EQUIPMENT FUEL-ADMIN 55/45
401-935-
08
57.33
HECK GEN 73416 TOTAL FOR FUND 2:
1,112.79
03/04/2021
GEN
73417*
COLONIAL SUPPLEMENTAL INS CO
Colonial Insurance
242-000-
00
31.28
03/04/2021
GEN
73418*
CONNER BRAND
GET REFUND/APPLIED
235-000-
00
87.50
03/04/2021
GEN
73420*
COREY BEILKE
GET REFUND/APPLIED
235-000-
00
70.00
03/04/2021
GEN
73421*
CRAIG JEPSEN OR SABA JEPSEN
GET REFUND/APPLIED
235-000-
00
119.00
03/04/2021
GEN
73422*
CURT MILLER
GET REFUND/APPLIED
235-000-
00
26.25
03/04/2021
GEN
73423*
DALE FROEMMING OR HELEN FROEMMING
GET REFUND/APPLIED
235-000-
00
115.50
03/04/2021
GEN
73424*
DAMARIS GUTIERRES-OVERVIDES
GET REFUND/APPLIED
235-000-
00
96.25
03/04/2021
GEN
73425*
DAN JANSSEN
Cip - Residential
401-916-
07
50.00
03/04/2021
GEN
73426*
DAN MORROW OR LOVELY MORROW
GET REFUND/APPLIED
235-000-
00
140.00
03/04/2021
GEN
73427*
DAVE BAGNE OR MARY BAGNE
GET REFUND/APPLIED
235-000-
00
84.00
03/04/2021
GEN
73428*
DAVE CACKA OR JENNIFER CACKA
GET REFUND/APPLIED
235-000-
00
89.25
03/04/2021
GEN
73429*
DAVID BARDWELL
GET REFUND/APPLIED
235-000-
00
101.50
03/04/2021
GEN
73430*
DAVID MACH OR CARA MACH
GET REFUND/APPLIED
235-000-
00
199.50
03/25/2021 02:00
PM
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
Page 32/42
User: JMartig
CHECK DATE
FROM 02/20/2021 - 03/25/2021
DE: Hutchinson
Utili
Check Date
Bank
Check #
Payee
Description
Account
Dept
Amount
Fund: 2 GAS
03/04/2021
GEN
73431*
DAVID MUECKE
DEP REFUND/APPLIED
235-000-
00
21.00
03/04/2021
GEN
73432*
DEB LANIGAN
DEP REFUND/APPLIED
235-000-
00
35.00
03/04/2021
GEN
73433*
DENNIS HRUBY OR SANDY HRUBY
DEP REFUND/APPLIED
235-000-
00
42.00
03/04/2021
GEN
73434*
DENNIS HRUBY OR SANDY HRUBY
DEP REFUND/APPLIED
235-000-
00
63.00
03/04/2021
GEN
73436*
DREW JOHNSON
DEP REFUND/APPLIED
235-000-
00
108.50
03/04/2021
GEN
73437*
EMILY DORSO
DEP REFUND/APPLIED
235-000-
00
33.25
03/04/2021
GEN
73438*
EMILY DORSO
DEP REFUND/APPLIED
235-000-
00
22.75
03/04/2021
GEN
734394
ENERTECH
Public Awareness - Material
401-874-
04
2,128.00
Operating & Maint-Brownton
416-108-
04
242.44
Public Awareness - Material
401-856-
05
528.12
HECK GEN 73439 TOTAL FOR FUND 2:
2,898.56
03/04/2021
GEN
73440*
ERIC PAPKE OR JENNIFER PAPKE
DEP REFUND/APPLIED
235-000-
00
35.00
03/04/2021
GEN
73441*
ERIK RAMGREN
DEP REFUND/APPLIED
235-000-
00
26.25
03/04/2021
GEN
73442*
ERVIN STAGE
DEP REFUND/APPLIED
235-000-
00
21.00
03/04/2021
GEN
73443*
ETHAN KNICKREHM
DEP REFUND/APPLIED
235-000-
00
61.25
03/04/2021
GEN
73444*
EVAN BUTLER
DEP REFUND/APPLIED
235-000-
00
21.00
03/04/2021
GEN
73445*
EVAN PLOTZ OR GINA PLOTZ
DEP REFUND/APPLIED
235-000-
00
157.50
03/04/2021
GEN
73446*
GARRET MILLER
DEP REFUND/APPLIED
235-000-
00
161.00
03/04/2021
GEN
73447*
CIA SAENZ
DEP REFUND/APPLIED
235-000-
00
87.50
03/04/2021
GEN
73448*4
GOPHER STATE ONE -CALL INC
Materials
401-874-
04
6.07
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 33/42
Amount
Fund: 2 GAS
Line - Outside Services
401-856-
05
1.35
HECK GEN 73448 TOTAL FOR FUND 2:
7.42
03/04/2021
GEN
73449*
GREG FINK OR CYNTHIA FINK
DEP REFUND/APPLIED
235-000-
00
28.00
03/04/2021
GEN
73450
GROEBNER & ASSOCIATES INC
TEE, TAPPING, ASBLY, 2" X 3/4" IPS
MDPE 154-000-
00
600.72
03/04/2021
GEN
73451*
HARMONY HAWKINS
DEP REFUND/APPLIED
235-000-
00
42.00
03/04/2021
GEN
73452*
HEIDI WERTZ
DEP REFUND/APPLIED
235-000-
00
133.00
03/04/2021
GEN
73453*
HILLYARD/HUTCHINSON
Grounds - Materials
401-935-
08
89.66
03/04/2021
GEN
73454*
HOPE FAMILY CHURCH
DEP REFUND/APPLIED
235-000-
00
360.50
03/04/2021
GEN
73455*
HOPE FAMILY CHURCH
DEP REFUND/APPLIED
235-000-
00
94.50
03/04/2021
GEN
73456*
HUTCHFIELD SERVICES INC
Grounds - Outside Services
401-935-
08
910.41
03/04/2021
GEN
73457*
INNOVATIVE OFFICE SOLUTIONS
OFFICE SUPPLIES
401-921-
08
44.
52
03/04/2021
GEN
73460*
JACK ROBERTSON
DEP REFUND/APPLIED
235-000-
00
119.00
03/04/2021
GEN
73461*
JASON PAULSON
DEP REFUND/APPLIED
235-000-
00
154.00
03/04/2021
GEN
73462*
JEANETTE BENSON
DEP REFUND/APPLIED
235-000-
00
113.75
03/04/2021
GEN
73463*
JEFFERY A SCOTT
DEP REFUND/APPLIED
235-000-
00
17.50
03/04/2021
GEN
73464*
JEFFREY MARVAN OR AMBER ELLESTAD
DEP REFUND/APPLIED
235-000-
00
66.50
03/04/2021
GEN
73465*
JENNIFER ROSE
DEP REFUND/APPLIED
235-000-
00
119.00
03/04/2021
GEN
73466*
JENNIFER WRASPIR
DEP REFUND/APPLIED
235-000-
00
77.00
03/04/2021
GEN
73467*
JEREMY FLECK OR DEMIRA TAYLOR
DEP REFUND/APPLIED
235-000-
00
127.75
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 34/42
Amount
Fund: 2 GAS
03/04/2021
GEN
73468*
JEREMY VARPNESS OR KATIE VARPNESS
GET
REFUND/APPLIED
235-000-
00
87.50
03/04/2021
GEN
73469*
JESUS PENA OR FLOR SANCHEZ
GET
REFUND/APPLIED
235-000-
00
94.50
03/04/2021
GEN
73470*
JILL SPRINGER
GET
REFUND/APPLIED
235-000-
00
38.50
03/04/2021
GEN
73471*
JODI WICK
GET
REFUND/APPLIED
235-000-
00
21.00
03/04/2021
GEN
73472*
JOE RATH
GET
REFUND/APPLIED
235-000-
00
87.50
03/04/2021
GEN
73474*
JOHN PAULSON OR DEB PAULSON
GET
REFUND/APPLIED
235-000-
00
119.00
03/04/2021
GEN
73475*
JON GOSSE OR ANDREA DAVIS
GET
REFUND/APPLIED
235-000-
00
189.00
03/04/2021
GEN
73476*
JONATHAN COTTON OR KAYCE COTTON
GET
REFUND/APPLIED
235-000-
00
21.00
03/04/2021
GEN
73477*
JORDAN BRUNDELL
GET
REFUND/APPLIED
235-000-
00
31.50
03/04/2021
GEN
73478*
JOSEPH DEVNEY OR KATHLEEN DEVNEY
GET
REFUND/APPLIED
235-000-
00
38.50
03/04/2021
GEN
73479*
JOSEPH WERTISH OR JILL WERTISH
GET
REFUND/APPLIED
235-000-
00
98.00
03/04/2021
GEN
73480*
JOYCE KELLY
GET
REFUND/APPLIED
235-000-
00
21.00
03/04/2021
GEN
73481*
JOYCE SCOTT
GET
REFUND/APPLIED
235-000-
00
131.25
03/04/2021
GEN
73482*
JULIE KRUEGER
GET
REFUND/APPLIED
235-000-
00
45.50
03/04/2021
GEN
73483*
JULIE PUDER
GET
REFUND/APPLIED
235-000-
00
66.50
03/04/2021
GEN
73484*
JUSTIN HOESE
GET
REFUND/APPLIED
235-000-
00
47.25
03/04/2021
GEN
73485*
KALLIOPE MILNE
GET
REFUND/APPLIED
235-000-
00
22.75
03/04/2021
GEN
73486*
RATH ALOKOA OR CAROLEE ALOKOA
GET
REFUND/APPLIED
235-000-
00
35.00
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 35/42
Amount
Fund: 2 GAS
03/04/2021
GEN
73487*
KEEGAN STUBER
GET
REFUND/APPLIED
235-000-
00
21.00
03/04/2021
GEN
73488*
KIRT RAYMOND
GET
REFUND/APPLIED
235-000-
00
45.50
03/04/2021
GEN
73490*
KRISTI THOMPSON-MUNN
GET
REFUND/APPLIED
235-000-
00
87.50
03/04/2021
GEN
73491*
KYLE MELCHERT
GET
REFUND/APPLIED
235-000-
00
113.75
03/04/2021
GEN
73493*
LARRY MIXON
GET
REFUND/APPLIED
235-000-
00
70.00
03/04/2021
GEN
73494*
LARRY MIXON
GET
REFUND/APPLIED
235-000-
00
24.50
03/04/2021
GEN
73495*
LESIE JO MAGNAN
GET
REFUND/APPLIED
235-000-
00
101.50
03/04/2021
GEN
73496*
LINDA WINN
GET
REFUND/APPLIED
235-000-
00
87.50
03/04/2021
GEN
73497*
LORA VOGELPOHL
GET
REFUND/APPLIED
235-000-
00
35.00
03/04/2021
GEN
73498*
LORA VOGELPOHL
GET
REFUND/APPLIED
235-000-
00
21.00
03/04/2021
GEN
73499*
MARKIE JOHNSON OR DAVID PLAMANN
GET
REFUND/APPLIED
235-000-
00
28.00
03/04/2021
GEN
73500*
MARY BRISSE
GET
REFUND/APPLIED
235-000-
00
94.50
03/04/2021
GEN
73502*
MATHEW RICHARDS
GET
REFUND/APPLIED
235-000-
00
17.50
03/04/2021
GEN
73503*
MATT FORCIER OR CHRISTINE FORCIER
GET
REFUND/APPLIED
235-000-
00
166.25
03/04/2021
GEN
73504*
MATT SANDEEN
GET
REFUND/APPLIED
235-000-
00
17.50
03/04/2021
GEN
73505*
MATTHEW SHAW OR DEANA SHAW
GET
REFUND/APPLIED
235-000-
00
45.50
03/04/2021
GEN
73508*
MEDICA
HEALTH
INSURANCE 15% GAS
242-000-
00
14,426.83
03/04/2021
GEN
73509*
MICHAEL J CAST OR NICOLE TOLLIFSON
GET
REFUND/APPLIED
235-000-
00
77.00
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 36/42
Amount
Fund: 2 GAS
03/04/2021
GEN
73510*
MICHAEL RASMUSSEN OR MOLLY
DEP REFUND/APPLIED
235-000-
00
31.50
03/04/2021
GEN
73511*
MICHAEL STRAUMANN
DEP REFUND/APPLIED
235-000-
00
59.50
03/04/2021
GEN
73512*
MN NCPERS
LIFE INSURANCE-PERA LIFE
242-000-
00
27.22
03/04/2021
GEN
73513*
MONICA MEDIA
DEP REFUND/APPLIED
235-000-
00
175.00
03/04/2021
GEN
73514*
MONICA SOPKOWIAK
DEP REFUND/APPLIED
235-000-
00
80.50
03/04/2021
GEN
73515*
NICK GLASER OR AMANDA BERRY
DEP REFUND/APPLIED
235-000-
00
91.00
03/04/2021
GEN
73516*4
NORTHERN STATES SUPPLY INC
MATERIALS
401-874-
04
22.78
03/04/2021
GEN
73517*
OSCAR SOTO
DEP REFUND/APPLIED
235-000-
00
35.00
03/04/2021
GEN
73519*
PARI SWANSON
DEP REFUND/APPLIED
235-000-
00
19.25
03/04/2021
GEN
73520*
PATRICIA SCHMIDT
DEP REFUND/APPLIED
235-000-
00
70.00
03/04/2021
GEN
73521*
PATRICIA SCHMIDT
DEP REFUND/APPLIED
235-000-
00
29.75
03/04/2021
GEN
73522*
PATRICK MCCORMICK
DEP REFUND/APPLIED
235-000-
00
70.00
03/04/2021
GEN
73523*4
PRO AUTO & TRANSMISSION REPAIR
VEHICLES - MATERIAL -GAS
402-895-
04
1,632.12
03/04/2021
GEN
73525*
QUINNDARIUS JACKSON OR L THOMAS
DEP REFUND/APPLIED
235-000-
00
35.00
03/04/2021
GEN
73526*
BANDEE COATES OR VERONICA COATES
DEP REFUND/APPLIED
235-000-
00
49.00
03/04/2021
GEN
73527*
RELIANCE STANDARD LIFE -LIFE
LTD INSURANCE-20o GAS
242-000-
00
444.70
LIFE INSURANCE-20o GAS
242-000-
00
194.48
HECK GEN 73527 TOTAL FOR FUND 2:
639.18
03/04/2021
GEN
73528*
ROBERT BOLLINGMO OR SABAH
DEP REFUND/APPLIED
235-000-
00
122.50
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check #
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Payee Description
Account
Dept
Page 37/42
Amount
Fund: 2 GAS
03/04/2021
GEN
73529*
ROMAN LUTHENS
DEP
REFUND/APPLIED
235-000-
00
21.00
03/04/2021
GEN
73530*
ROSA MEDIA VAZQUEZ
DEP
REFUND/APPLIED
235-000-
00
108.50
03/04/2021
GEN
73531*
ROSA MEDIA VAZQUEZ
DEP
REFUND/APPLIED
235-000-
00
87.50
03/04/2021
GEN
73532*
SALLY BEAUTY
DEP
REFUND/APPLIED
235-000-
00
122.50
03/04/2021
GEN
73533*
SAMANTHA HERTELL
DEP
REFUND/APPLIED
235-000-
00
80.50
03/04/2021
GEN
73535*
SAMANTHA SLATER
DEP
REFUND/APPLIED
235-000-
00
49.00
03/04/2021
GEN
73536*
SARAH RADDATZ
DEP
REFUND/APPLIED
235-000-
00
57.75
03/04/2021
GEN
73538*
SHANNON TIMPERIO
DEP
REFUND/APPLIED
235-000-
00
26.25
03/04/2021
GEN
73539*
SHELLY GLESENER OR ADAM GLESENER
DEP
REFUND/APPLIED
235-000-
00
105.00
03/04/2021
GEN
73540
SOUTH CENTRAL ELECTRIC ASS'N
UTILITIES
(ELECTRIC, SATELLITE
401-856-
05
33.00
03/04/2021
GEN
73541*
STEVE HANSEN
DEP
REFUND/APPLIED
235-000-
00
182.00
03/04/2021
GEN
73542*
TERRY GRINDE
DEP
REFUND/APPLIED
235-000-
00
145.25
03/04/2021
GEN
73543*
TIM BURLEY OR JENNIFER BURLEY
DEP
REFUND/APPLIED
235-000-
00
63.00
03/04/2021
GEN
73544*
TIM MACKEDANZ OR JAKE MACKEDANZ
DEP
REFUND/APPLIED
235-000-
00
64.75
03/04/2021
GEN
73545*
TRACY BUSCHEL OR TIMOTHY BUSCHEL
DEP
REFUND/APPLIED
235-000-
00
84.00
03/04/2021
GEN
73547*
TRISHA REINITZ
DEP
REFUND/APPLIED
235-000-
00
108.50
03/04/2021
GEN
73548*
VERIZON WIRELESS
TELEPHONE
401-921-
08
501.46
03/04/2021
GEN
73549*
VERONICA POMPA
DEP
REFUND/APPLIED
235-000-
00
70.00
03/25/2021 02:00
PM
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
Page 38/42
User: JMartig
CHECK DATE FROM
02/20/2021 - 03/25/2021
DE: Hutchinson
Utili
Check Date
Bank
Check #
Payee
Description
Account
Dept
Amount
Fund: 2 GAS
03/04/2021
GEN
73550*
VERONICA POMPA
DEP REFUND/APPLIED
235-000-
00
35.00
03/04/2021
GEN
73551*
VERONICA POMPA
DEP REFUND/APPLIED
235-000-
00
70.00
03/04/2021
GEN
73552*
WALLACE DAFFNER OR BARBARA DAFFNER
DEP REFUND/APPLIED
235-000-
00
98.00
03/04/2021
GEN
73553*
WHITNEY DURBIN OR SPENCER R DURBIN
DEP REFUND/APPLIED
235-000-
00
8.75
03/04/2021
GEN
73554*
WHITNEY DURBIN OR SPENCER R DURBIN
DEP REFUND/APPLIED
235-000-
00
119.00
03/04/2021
GEN
73555*
WILLIAM C LUECK III OR CHUCK LUECK
DEP REFUND/APPLIED
235-000-
00
38.50
03/04/2021
GEN
73556*
WILLIAM KILGORE
DEP REFUND/APPLIED
235-000-
00
63.00
03/04/2021
GEN
754(E)*
ARGUS DENTAL
DENTAL INSURANCE-20o GAS
242-000-
00
913.77
03/12/2021
GEN
73558
BROWN COUNTY RURAL ELECTRIC
Utilities (Electric, Satellite
401-856-
05
209.52
03/12/2021
GEN
73559*
CARD SERVICES
Grounds - Materials
401-935-
08
3.46
03/12/2021
GEN
73560
CENTURYLINK
Utilities (Electric, Satellite
401-856-
05
59.98
03/12/2021
GEN
73561*4
CINTAS CORPORATION 4470
UNIFORMS & LAUNDRY
401-880-
04
217.85
UNIFORMS & LAUNDRY
401-880-
04
271.
90
HECK GEN 73561 TOTAL FOR FUND 2:
489.75
03/12/2021
GEN
73562*
CITY OF HUTCHINSON
IT ADMIN AND SUPPORT 250
401-921-
08
1,655.70
03/12/2021
GEN
73566
ELSTER AMERICAN METER
Industrial M & R Station Equip
107-385-
00
1,803.63
03/12/2021
GEN
73567*4
FASTENAL COMPANY
Other Equipment - Materials
402-895-
04
54.34
03/12/2021
GEN
73572
HUGHES NETWORK SYSTEMS
UTILITIES -NEW ULM COMMUNICATIONS
401-856-
05
106.
94
03/12/2021
GEN
73573*4
HUTCHINSON WHOLESALE SUPPLY CO
Vehicles - Material
402-895-
04
25.94
Power Equipment - Materials
402-895-
04
1,036.04
Other Equipment - Materials
402-895-
04
429.69
HECK GEN 73573 TOTAL FOR FUND 2:
1,491.67
03/25/2021 02:00
PM
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
Page 39/42
User: JMartig
CHECK DATE FROM
02/20/2021 - 03/25/2021
DE: Hutchinson
Utili
Check Date
Bank
Check #
Payee
Description
Account
Dept
Amount
Fund: 2 GAS
03/12/2021
GEN
73575*
INNOVATIVE OFFICE SOLUTIONS
OFFICE SUPPLIES
401-921-
08
31.51
03/12/2021
GEN
73578
KURTH WELDING & REPAIR
Transportation Equipment
107-392-
00
30.00
03/12/2021
GEN
73580
MCLEOD COUNTY TREASURER
Materials
402-892-
04
70.00
03/12/2021
GEN
73582*
MINNESOTA COMMERCE DEPT
Doc - Cip Assessment
401-916-
07
1,677.88
03/12/2021
GEN
73584
NORTHERN BORDER PIPELINE CO
LINE - OUTSIDE SERVICES -INTERCONNECT
401-856-
05
2,000.00
03/12/2021
GEN
73585*
NUVERA
TELEPHONE
401-921-
08
649.09
TELEPHONE
401-921-
08
12.14
HECK GEN 73585 TOTAL FOR FUND 2:
661.23
03/12/2021
GEN
73587*4
O'REILLY AUTOMOTIVE INC
Materials
401-874-
04
25.76
03/12/2021
GEN
73588*4
OXYGEN SERVICE COMPANY INC
Materials
401-874-
04
88.19
03/12/2021
GEN
73589*
PREMIUM WATERS INC
OFFICE SUPPLIES -BOTTLED WATER
401-921-
08
5.30
03/12/2021
GEN
73590
PROFESSIONAL ENGINEERING SERVICES
Materials
401-856-
05
495.00
03/12/2021
GEN
73591*4
RUNNING'S SUPPLY INC
Other Equipment - Materials
402-895-
04
20.91
03/12/2021
GEN
73592
SPRINT
Utilities (Electric, Satellite
401-856-
05
133.00
03/12/2021
GEN
73594*
TRANS
Lease/Service Agreements
401-921-
08
328.18
03/12/2021
GEN
73595*
UNITED PARCEL SERVICE
MAIL SERVICES - UPS, FEDEX
401-921-
08
57.93
03/12/2021
GEN
73596*4
WEST CENTRAL SANITATION INC
UTILITY EXPENSES - WATER/WASTE 45/55
401-930-
08
183.67
03/12/2021
GEN
755(E)*4
VISA
TRAINING - EXPENSE-MEA MEETINGS
401-870-
04
1,550.00
MATERIALS-VERIDESK-WRENCH
401-874-
04
692.01
OTHER EQUIP - MATERIALS -SPRING -JACK
402-895-
04
484.63
AM INOVATIONS-REMOTE MONITORING
401-856-
05
177.00
MATERIALS-LAFYETTE CHEM
401-856-
05
359.00
TELEPHONE -SUPPLIES
401-921-
08
50.23
OFFICE SUPPLIES -POWER STRIP
401-921-
08
12.61
Office Supplies
401-921-
08
16.51
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check # Payee
Fund: 2 GAS
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Description
03/18/2021 GEN 73601* AARON SHIMER
03/18/2021 GEN 73603* ALLEGRA NOVOTNY
03/18/2021 GEN 73605* AUSTIN HAMRE
03/18/2021 GEN 73606* AUSTIN WIRZ OR JAYDEN MUELLNER
03/18/2021 GEN 73607* BORDER STATES ELECTRIC SUPPLY
03/18/2021 GEN 73609* BROCK CASON
03/18/2021 GEN 73611* CARIBOU COFFEE COMPANY INC
03/18/2021 GEN 73613 DOT/PHMSA
03/18/2021 GEN 73619*4 HILLYARD/HUTCHINSON
03/18/2021
GEN
73622*
JAMES CHAPMAN
03/18/2021
GEN
73624*
JLR GARAGE DOOR SERVICE INC
03/18/2021
GEN
73625*
KEVIN SCAIFE
03/18/2021
GEN
73627*
KRISTEN MATTHEWS
03/18/2021
GEN
736284
MCLEOD COOPERATVIE POWER ASSN
Account Dept
Page 40/42
Amount
GROUNDS - MATERIALS -VALVE ACTUATOR
401-935-
08
137.86
HECK GEN 755(E) TOTAL FOR FUND 2:
3,479.85
DEP REFUND/APPLIED
235-000-
00
17.50
DEP REFUND/APPLIED
235-000-
00
103.25
DEP REFUND/APPLIED
235-000-
00
96.25
DEP REFUND/APPLIED
235-000-
00
42.00
TEE, TAPPING, 2" X 3/4" IPS, SDR 11,
154-000-
00
165.44
DEP REFUND/APPLIED
235-000-
00
70.00
DEP REFUND/APPLIED
235-000-
00
612.50
REGULATORY EXPENSES
401-928-
08
32,818.77
Grounds - Materials
401-935-
08
62.80
Grounds - Materials
401-935-
08
42.07
HECK GEN 73619 TOTAL FOR FUND 2:
104.87
DEP REFUND/APPLIED
235-000-
00
129.50
Misc Other - Materials
401-935-
08
202.50
DEP REFUND/APPLIED
235-000-
00
24.50
DEP REFUND/APPLIED
235-000-
00
49.00
MISC EXPENSE -GAS LINE PUMP
401-880-
04
78.54
UTILITIES (ELECTRIC, SATELLITE-MCLEOD
401-856-
05
38.66
UTILITIES (ELECTRIC, SATELLITE -PIPELINE
401-856-
05
39.44
HECK GEN 73628 TOTAL FOR FUND 2:
156.64
03/25/2021 02:00 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
User: JMartig CHECK DATE FROM 02/20/2021 - 03/25/2021
DE: Hutchinson Utili
Check Date Bank Check # Payee Description Account Dept
Fund: 2 GAS
03/18/2021
GEN
73629*
NORTHERN BUSINESS PRODUCTS
Glides for HON Motivate Stacking Chair
401-930-
08
03/18/2021
GEN
73631*
RACHEL KRIESE
DEP REFUND/APPLIED
235-000-
00
03/18/2021
GEN
73632*
ROBERT BROOKS OR CADI BROOKS
DEP REFUND/APPLIED
235-000-
00
03/18/2021
GEN
73633*
ROBERT L BUSTAMANTE OR L ABRHAMSON
DEP REFUND/APPLIED
235-000-
00
03/18/2021
GEN
73634*
SHIRLEY WESTALL
DEP REFUND/APPLIED
235-000-
00
03/18/2021
GEN
73636*
TARA KLOECKL-ASHTON
DEP REFUND/APPLIED
235-000-
00
03/18/2021
GEN
736384
THE PARADIGM ALLIANCE INC
Public Awareness - Material
401-874-
04
Operating & Maint-Brownton
416-108-
04
Public Awareness - Material
401-856-
05
HECK GEN 73638 TOTAL FOR FUND 2:
03/18/2021 GEN 73640* UIS/SOURCECORP
03/18/2021 GEN 73641* ZACHERY DUPPONG
03/19/2021 GEN 757(E)* CETERA INVESTMENT SERVICES LLC
03/19/2021 GEN 758(E) PUBLIC ENERGY AUTHORITY OF
03/23/2021 GEN 756(E)* MINNESOTA REVENUE
03/25/2021 GEN 761(E)*4 BP CANANDA ENERGY SOLUTIONS
COLLECTION - MATERIALS
401-903-
06
DEP REFUND/APPLIED
235-000-
00
Cetera Investments
136-000-
00
Gas For Retail
401-807-
04
3M
401-807-
04
HTI
401-807-
04
HECK GEN 758(E) TOTAL FOR FUND 2:
State Sales Tax
242-000-
00
City Sales Tax
242-000-
00
COUNTY SALES TAX
242-000-
00
HECK GEN 756(E) TOTAL FOR FUND 2:
GAS FOR RETAIL
401-807-
04
GAS FOR RETAIL
401-807-
04
3M
401-807-
04
HTI
401-807-
04
Page 41/42
Amount
62.52
31.50
17.50
38.50
24.50
14.00
1,830.00
610.00
4,270.00
1,473.00
14.00
2,100.00
298,806.93
124,509.00
423,439.13
38,712.00
2,737.00
2,737.00
44,186.00
1,781.80
2,447,067.15
1,380,135.85
148,112.08
03/25/2021 02:00 PM
User: JMartig
DE: Hutchinson Utili
Check Date Bank Check # Payee
CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES
CHECK DATE FROM 02/20/2021 - 03/25/2021
Description
Account
Dept
Page 42/42
Amount
Fund: 2 GAS
UNG
401-807-
04
7,127.60
BROWNTON
401-807-
04
88,409.32
Utility Expenses - Water/Waste
401-930-
08
22,652.63
HECK GEN 761(E) TOTAL FOR FUND 2:
4,095,286.43
03/25/2021 GEN 762(E)* POINT &
PAY METER READING - MATERIALS
401-903-
06
2,152.06
Total for fund 2 GAS
4,692,678.38
TOTAL -
ALL FUNDS
6,636,452.04
--INDICATES CHECK DISTRIBUTED
TO MORE THAN ONE FUND
'#'-INDICATES CHECK DISTRIBUTED
TO MORE THAN ONE DEPARTMENT
December 31, 2020 �'
Independent Auditor's Report
Pages 2-4:
Financial statements are the responsibility of the Commission's
management
Our responsibility is to express an opinion on these financial statements
based on our audit
Conducted audit in accordance with Generally Accepted Auditing
Standards and Government Auditing Standards
Obtain reasonable assurance financials are free from material
misstatement
Independent Auditor's Report (Cont"d)
Pages 2-4:
Financial statements of the Commission are presented fairly in our
opinion
Required Supplementary Information — Management's Discussion and
Analysis (pages 5-9)
Additional Required Supplementary Information (pages 37-43)
Internal control letter on pages 57-58
Statement of Net Position
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Current Assets
Restricted Assets
Net Capital Assets
Total Assets
Deferred Outflows of Resources
Total Assets and Deferred Ouflows of Resources
2020 2019
$ 31,262,932 $ 28,021,482
3,680,239 3,575,572
76,734,063 78,891,267
111,677,234 110,488,321
$ 112,094,790 $ 110,780,653
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITON
Liabilities
Current Liabilities $ 3,098,734 $ 3,133,042
Long -Term Liabilities 33,000,428 34,789,314
Total Liabilities 36,099,162 37,922,356
Deferred Inflows of Resources 164,556 734,363
Net Position
Net Investment in Capital Assets 52,270,140 52,003,611
Unrestricted 23,560,932 20,120,323
Total Net Position 75,831,072 72,123,934
Total Liabilities. Deferred Inflows of Resources and Net Position
$ 112,094,790 $ 110,780,653
�pC
x
Cash and Investment Balances
$20,000,000
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000 O O O O O
$6,000,000
$4,0001000
$2,000,000 0 O O O O
$0 2016 2017 2018 2019 2020
INOperating $10,186,906 $10,311,734 $13,283,267 $16,644,372 $18,776,862
IIIIII Restricted 2,639,626 17,983,727 8,037,130 3,676,672 3,680,239
0 Designated 6,366,928 6,716,036 6,676,468 6,841,236 6,802,306
Statement of Revenues, Expenses and
Changes in Net Position
OPERATING REVENUES
OPERATING EXPENSES
Production
Purchased Power/Gas
Other Operating Expense
Administrative and General
Depreciation
Contribution to City of Hutchinson
Total Operating Expenses
Operating Income (Loss)
NET NONOPERATING REVENUES (E)PENSES)
Change in Net Position
NET POSITION, BEGINNING OF YEAR
NET POSITION. END OF YEAR
.T.yT.P1
$ 37,980,837 $ 40,392,108
3,483,546
3,776,245
18,424,450
19,737,334
6,128,047
6,588,066
2,278,129
2,258,657
3,893,094
3,807,479
1 Pr,7 1 ao
1 G:7r. 1 1 C
1,906,379 2,549,211
1,800,759 (261,968)
3,707,138 2,287,243
i4liDYZ Y7.�K i�YT!l!Z SI
$ 75, 831, 072 $ 72,123, 934
Electric Division
$30,000,000
$27,500,000
$25,000,000 NEI
$22,500,000
$20,000,000
$17,500,000
$15,000,000
$12,500,000
$10,000,000
$7,500,000
$5,000,000
$0
$(2,500,000) 2016 2017 2018 2019
■Total Operating Revenues $27,148,511 $27,656,979 $28,745,389 $27,982,592
IN Total Operating Operating Expenses 27,406,181 27,925,962 28,635,904 27,994,698
IIIIIINet Nonoperating Revenues (Expenses) 52,536 (8,337) (283,198) (239,498)
2020
$26,460,616
26,516,829
1,644,875
Electric Division
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
■
$(200,000)
$(400,000)
2016
2017
2018 2019 2020
■ Change in Net
$(205,134)
$(277,320)
$(173,713) $(251,604) $1,588,662
Position
Revenue per KWH
Year Ended December 31, 2020
Revenue Per
Amount
KWH Sold
KWH
CLASS
Residential
$ 5,430,649
53,026,200
$ 0.1024
All Electric
262,036
2,619,180
0.1000
Small General Service
1,767,463
17,672,005
0.1000
Large General Service
7,143,656
78,549,650
0.0909
Industrial
8,963,654
116,965,000
0.0766
Sale for Resale
2,709,012
8,746,000
0.3097
Street Lighting
141,886
95,141
1.4913
$ 26,418,356
277,673,176
$ 0.0951
Year Ended December 31, 2019
Revenue Per
Amount
KWH Sold
KWH
CLASS
Residential
$ 5,367,301
50,722,665
$ 0.1058
All Electric
271,424
2,634,437
0.1030
Small General Service
1,949,017
18,865,495
0.1033
Large General Service
7,617,714
79,760,000
0.0955
Industrial
9,667,324
118,891,000
0.0813
Sale for Resale
2,773,852
14,080,000
0.1970
Street Lighting
147,456
93,803
1.5720
$ 27,794,088 285,047,400 $ 0.0975
n �pC ...............
Natural Gas Division
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
$(2,000,000)
2016
2017
2018
2019
2020
■Total Operating Revenues
$11,368,212
$12,378,636
$12,747,746
$12,409,616
$11,620,221
IN Total Operating Expenses
9,043,923
10,126,029
9,323,004
9,848,199
9,667,629
IIIIIINet Nonoperating Revenues (Expenses)
(269,688)
(403,706)
(192,296)
(22,470)
166,884
Natural Gas Division
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$p
2016 2017 2018 2019 2020
■ Change in Net Position $2,044,601 $1,848,901 $3,232,446 $2,638,847 $2,118,476
Revenue per MCF
Year Ended December 31, 2020
Revenue Per
Thousand
Amount
CF Sold
MCF
CLASS
Residential
$ 3,663,453
406,278,411
$ 9.0171
Commercial
2,597,225
309, 545, 384
8.3904
Large industrial
3,539,863
878,793,137
4.0281
$ 9,800,541
1, 594, 616, 932
$ 6.1460
Year Ended December 31, 2019
Revenue Per
Thousand
Amount
CF Sold
MCF
CLASS
Residential
$ 3,981,709
458,153,032
$ 8.6908
Commercial
2,974,834
365,411,303
8.1411
Large industrial
3,679,891
876,357,892
4.1991
$ 10, 636, 434 1, 699, 922, 227 $ 6.2570
Communications
Accounting Practices
No Difficulties Encountered
Corrected and Uncorrected Misstatements
No Disagreements with Management
Management Representations
Management Consultations with Other Accountants
Other Audit Findings or Issues
General Recommendations
Cross -Training
Questions or Comments?
Contact information:
Justin McGraw, CPA
320-693-7975
HUTCHINSON UTILITIES COMMISSION
MANAGEMENT LETTER
DECEMBER 31, 2020
CONWAY, DEUTH & SCHMIESING, PLLP
CPAS & ADVISORS
LITCHFIELD, MINNESOTA
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HUTCHINSON UTILITIES COMMISSION
TABLE OF CONTENTS
DECEMBER 31, 2020
PAGE
Required Communications 1-3
Comparative Financial Data 4
Graphical Information 5-12
Schedule of Findings on Accounting Issues and Internal Controls 13
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REQUIRED COMMUNICATIONS
Members of the Hutchinson Utilities Commission
Hutchinson, Minnesota
We have audited the financial statements of Hutchinson Utilities Commission, a fund of the City of Hutchinson,
Minnesota, as of and for the year ended December 31, 2020. Professional standards require that we provide you with
information about our responsibilities under generally accepted auditing standards and Government Auditing Standards,
as well as certain information related to the planned scope and timing of our audit. We have communicated such
information in our letter to you dated January 7, 2021. Professional standards also require that we communicate to you
the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting
policies used by the Commission are described in Note 1 to the financial statements. No new accounting policies were
adopted in 2020. We noted no transactions entered into by the Commission during the year for which there is a lack of
authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the
proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on
management's knowledge and experience about past and current events and assumptions about future events. Certain
accounting estimates are particularly sensitive because of their significance to the financial statements and because of
the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates
affecting the financial statements were:
Management's estimate of the allowance for doubtful accounts is based on historical electric and natural gas revenues,
historical loss levels, and an analysis of the collectability of individual accounts. We evaluated the key factors and
assumptions used to develop the allowance in determining that it is reasonable in relation to the financial statements
taken as a whole.
Management's estimate of depreciation is based on the number of years an asset is in service. We evaluated the key
factors and assumptions used to develop the depreciation estimate in determining that it is reasonable in relation to the
financial statements taken as a whole.
Management's estimate of pension related items and other postemployment benefit related items are based on
actuarial valuations performed by consultants specializing in those areas. We evaluated the key factors and
assumptions used to develop those estimates in determining that it is reasonable in relation to the financial statements
taken as a whole.
im
wwwxdaYca.col�li)
Lifchfiettf Off ice
820 Sibley Ave N
Litchfield, MN 55355
(320) 693-7975
Sairtell Office
Ste 11!0
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Members: American Institute Of Certified Public Accountants, Minnesota Society of Certiffed Public Accountants
Significant Audit Findings (Cont'd)
Qualitative Aspects of Accounting Practices (Cont'd)
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than
those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected
all such misstatements.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter,
whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We
are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter
dated March 31, 2021.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters,
similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting
principle to the Commission's financial statements or a determination of the type of auditor's opinion that may be
expressed on those statements, our professional standards require the consulting accountant to check with us to
determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other
accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with
management each year prior to retention as the Commission's auditors. However, these discussions occurred in the
normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to Management's Discussion and Analysis, the Schedule of Proportionate Share of
the Net Pension Liability, the Schedule of Employer Contributions, the Schedule of Changes in the Commission's Total
OPEB Liability and the related notes, which is required supplementary information that supplements the basic financial
statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the
required supplementary information and do not express an opinion or provide any assurances on the required
supplementary information.
2
Significant Audit Findings (Cont'd)
Other Matters (Cont'd)
We were engaged to report on the statements and schedules listed in the table of contents as supplementary
information, which accompany the financial statements but are not required supplementary information. With respect to
this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods
of preparing the information to determine that the information complies with accounting principles generally accepted in
the United States of America, the method of preparing it has not changed from the prior period, and the information is
appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the
supplementary information to the underlying accounting records used to prepare the financial statements or to the
financial statements themselves.
We were not engaged to report on the Organizational Data section, which accompany the financial statements but are
not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or
provide any assurance on it.
Restriction on Use
This information is intended solely for the use of the Commission and management of Hutchinson Utilities Commission
and is not intended to be and should not be used by anyone other than these specified parties.
C(,null, Du" ' &ki. 71 sii , 7"I.P
CONWAY, DEUTH & SCHMIESING, PLLP
CPAS & ADVISORS
LITCHFIELD, MINNESOTA
March 31, 2021
3
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ELECTRIC DIVISION
Residential
General Service
Industrial
Street Lighting
Resale
Total Electric Sales
Other Operating Revenues
Total Operating Revenues
Purchased Power - Electric
Other Operating Expenses
Total Operating Expenses
Net Nonoperating Revenues (Expenses)
Change in Net Position
GAS DIVISION
Residential
Commercial
Industrial
Total Gas Revenues
Gas Transportation
Total Operating Revenues
Purchased Power - Gas
Other Operating Expenses
Total Operating Expenses
Net Nonoperating Revenues (Expenses)
HUTCHINSON UTILITIES COMMISSION
COMPARATIVE FINANCIAL DATA
2016 2017 2018 2019 2020
$ 5,269,261 $ 5,341,820 $ 5,601,482 $ 5,638,725 $ 5,692,685
8,567,839 9,050,034 9,523,924 9,566,730 8,911,119
10,941,617 10,778,629 10,218,577 9,667,324 8,963,654
144,641 147,484 147,470 147,456 141,886
1,931,859 2,171,853 3,071,099 2,773,852 2,709,012
26,855,217 27,489,820 28,562,552 27,794,087 26,418,356
293,294 167,159 182,837 188,505 42,260
27,148,511 27,656,979 28,745,389 27,982,592 26,460,616
14,568,448 15,062,252 15,680,416 14,272,870 13,172,097
12,837,733 12,863,710 13,017,890 13,721,828 13,344,732
27,406,181 27,925,962 28,698,306 27,994,698 26,516,829
52,536 (8,337) (283,198) (239,498) 1,644,875
$ (205,134) $ (277,320) $ (236,115) $ (251,604) $ 1,588,662
$ 3,839,034 $ 3,937,048 $ 4,139,639 $ 3,981,709 $ 3,663,453
2,824,329
3,019,230
3,070,904
2,974,834
2,597,225
3,215,714
3,842,863
3,870,184
3,679,891
3,539,863
9,879,077
10,799,141
11,080,727
10,636,434
9,800,541
1,479,135
1,579,495
1,667,019
1,773,082
1,719,680
11,358,212
12,378,636
12,747,746
12,409,516
11,520,221
5,697,867
6,883,154
6,084,090
5,961,040
5,588,511
3,346,056
3,242,875
3,259,715
3,887,159
3,969,118
9,043,923
10,126,029
9,343,805
9,848,199
9,557,629
(269,688)
(403,706)
(192,296)
(22,470)
155,884
Change in Net Position $ 2,044,601 $ 1,848,901 $ 3,211,645 $ 2,538,847 $ 2,118,476
HUTCHINSON UTILITIES COMMISSION
ELECTRIC DIVISION
Operating Revenues & Expenses and Net Nonoperating Revenues (Expenses)
$35,000,000
$30,000,000
$25,000,000 $27, 406,181 $27, 925, 962 $28, 698, 306 $27, 994, 698 $26,516,829
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0l44 875
il��1161
-$5,000,000
2016 2017 2018 2019 2020
■Total Operating Revenues ®Total Operating Expenses ®Net Nonoperating Revenues (Expenses)
$28,745,389 $27,982,592
$27,148,511 $27,656,979
$26,460,616
Change in Net Position
$2,000,000
$1,588,662
$1,500,000
$1,000,000
$500,000
$0
$ (205,134)
$(277,320) $(236,115) $(251,604)
-$500,000
2016 2017 2018 2019 2020
BChange in Net Position
5
HUTCHINSON UTILITIES COMMISSION
ELECTRIC DIVISION
Major Revenue by Source
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
2016 2017 2018 2019 2020
■Residential ®General Service Glndustrial
Purchased Power & Fuel Costs Compared to Total Sales
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
2016 2017 2018 2019 2020
■Purchased Power- Electric ®Total Electric Sales
HUTCHINSON UTILITIES COMMISSION
ANALYSIS OF OPERATIONS
ELECTRIC DIVISION
YEARS ENDED DECEMBER 31, 2020 AND 2019
The Statement of Revenues and Expenses set forth the results of the operations in detail for the years ended December
31, 2020 and 2019. Operating revenues, kilowatt hours (KWH) sold, and average revenue per kilowatt hour sold by class
of service are as follows:
CLASS
Residential
All Electric
Small General Service
Large General Service
Industrial
Sale for Resale
Street Lighting
Year Ended December 31, 2020
Revenue Per
Amount KWH Sold KWH
$ 5,430,649
53,026,200 $
262,036
2,619,180
1,767,463
17,672,005
7,143,656
78,549,650
8,963,654
116,965,000
2,709,012
8,746,000
141,886
95,141
0.1024
0.1000
0.1000
0.0909
0.0766
0.3097
1.4913
$ 26,418,356 277,673,176 $ 0.0951
Year Ended December 31, 2019
Revenue
Per
Amount
KWH Sold
KWH
CLASS
Residential
$ 5,367,301
50,722,665 $
0.1058
All Electric
271,424
2,634,437
0.1030
Small General Service
1,949,017
18,865,495
0.1033
Large General Service
7,617,713
79,760,000
0.0955
Industrial
9,667,324
118,891,000
0.0813
Sale for Resale
2,773,852
14,080,000
0.1970
Street Lighting
147,456
93,803
1.5720
$ 27,794,087
285,047,400 $
0.0975
7
HUTCHINSON UTILITIES COMMISSION
ANALYSIS OF OPERATIONS
ELECTRIC DIVISION
YEARS ENDED DECEMBER 31, 2020 AND 2019
KWH Sold
95,141
Street Lighting 93,803
8,746,000
Sale for Resale 14,080,000
116,965,000
Industrial 118, 891, 000
78,549,650
Large General Service
79, 760, 000
17,672,005
Small General Service 18,865,495
2,619,180
All Electric 2,634,437
53,026,200
Residential 50,722,665
Street Lighting
Sale for Resale
Industrial
Large General Service
Small General Service
All Electric
Residential
$1
0 50,000,000 100,000,000 150,000,000 200,000,000
2020 KWH Sold M2019 KWH Sold
Average $/KWH
$1.4913
$1.5720
$0.3097
$0.1970
$0.0766
$0.0813
$0.0909
$0.0955
$0.1000
$0.1033
$0.1000
$0.1030
$0.1024
$0.1058
).00 $0.50 $1.00 $1.50 $2.00
®2020 Revenue Per KWH 02019 Revenue Per KWH
HUTCHINSON UTILITIES COMMISSION
NATURAL GAS DIVISION
Operating Revenues & Expenses and Net Nonoperating Revenues (Expenses)
$14,000,000
$11,358,212 $12, 378, 636 $12,747,746 $12,409,516
$10,126, 029 $9, 343, 805 $9
,848,199 $9, 557, 6
$9,043,923
$11,520,221
$(269,688) $(192,296) $(22,470)
$ (403, 706)
Change in Net Position
$3, 500, 000
$3,211,645
$3, 000, 000
$2,538,847
$2, 500, 000
$2, 044, 601 $2,118, 476
$2,000,000 $1,848,901
$1,500,000
$1,000,000
$500,000
$0
2016 2017 2018 2019 2020t Position ■Change in Net
Change in Net Position
$3, 500, 000
$3,211,645
$3, 000, 000
$2,538,847
$2, 500, 000
$2, 044, 601 $2,118, 476
$2,000,000 $1,848,901
$1,500,000
$1,000,000
$500,000
$0
2016 2017 2018 2019 2020t Position ■Change in Net
HUTCHINSON UTILITIES COMMISSION
NATURAL GAS DIVISION
Major Revenue by Source
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
2016 2017 2018 2019 2020
■Residential ®Commercial Olndustrial
Purchased Gas Compared to Total Sales
$12,000,000
$10,000,000
$8, 000, 000
$6, 000, 000
$4, 000, 000
$2, 000, 000
$0
2016 2017 2018 2019 2020
■Purchased Power - Gas ®Total Gas Revenues
10
HUTCHINSON UTILITIES COMMISSION
ANALYSIS OF OPERATIONS
NATURAL GAS DIVISION
YEARS ENDED DECEMBER 31, 2020 AND 2019
The Statement of Revenues and Expenses set forth the results of the operations in detail for the years ended December
31, 2020 and 2019. Operating revenues, cubic feet sold, and average revenue per thousand cubic feet sold by class of
service are as follows:
Year Ended December 31, 2020
Revenue Per
Thousand
Amount
CF Sold
MCF
CLASS
Residential
$
3,663,453
406,278,411
$ 9.0171
Commercial
2,597,225
309,545,384
8.3904
Large Industrial
3,539,863
878,793,137
4.0281
$
9,800,541
1,594,616,932
$ 6.1460
Year Ended
December 31,
2019
Revenue Per
Thousand
Amount
CF Sold
MCF
CLASS
Residential
$
3,981,709
458,153,032
$ 8.6908
Commercial
2,974,834
365,411,303
8.1411
Large Industrial
3,679,891
876,357,892
4.1991
$
10,636,434
1,699,922,227
$ 6.2570
11
HUTCHINSON UTILITIES COMMISSION
ANALYSIS OF OPERATIONS
NATURAL GAS DIVISION
YEARS ENDED DECEMBER 31, 2020 AND 2019
CF Sold
Average $/MCF
$4.0281
Large Industrial $4.1991
$8.3904
Commercial $8.1411
$9.0171
Residential
$8.6908
$4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $11.00
02020 Revenue per 1000 MCF 02019 Revenue Per 1000 MCF
12
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HUTCHINSON UTILITIES COMMISSION
SCHEDULE OF FINDINGS ON ACCOUNTING ISSUES AND INTERNAL CONTROLS
DECEMBER 31, 2020
We noted certain matters involving the internal control structure and its operation that we consider being deficiencies in
internal control under standards established by the American Institute of Certified Public Accountants. A deficiency in
internal control exists when the design or operation of a control does not allow management or employees, in the normal
course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis.
INTERNAL CONTROL
The objective of internal accounting control is to provide reasonable, but not absolute, assurance as to the safeguarding
of assets against loss from unauthorized use or disposition, and the reliability of financial records for preparing financial
statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a
system of internal accounting control should not exceed the benefits derived and also recognizes that the valuation of
these factors necessarily requires estimates and judgments by management.
It should be recognized that within the Commission, an inherent risk is present with certain positions. It is very common
for entities such as Hutchinson Utilities Commission, to assign many major responsibilities to a few key individuals in an
attempt to operate within limited budgets. The inherent risk is again addressed only to maintain the awareness of the
internal control structure and to encourage the Commission's continual review of financial information at monthly
meetings.
GENERAL RECOMMENDATIONS
Throughout the course of the audit, we spoke with management regarding certain items that we see as an opportunity to
improve. None of these were considered significant within the scope of the audit. The items discussed requiring action
have been resolved or are in the process of resolution. We would like to acknowledge the assistance and courtesies
extended to us by the personnel of the Hutchinson Utilities Commission.
CROSS -TRAINING
In small public entities, it is common for one person to be primarily responsible for handling all financial matters (payroll,
disbursements, receiving, recording transactions, etc.). This concentration of duties in one person is not desirable for a
sound control environment and contingency planning. One measure to help counter this weakness involves training a
second person in specific duties related to the entities finances.
Cross -training has numerous benefits. It allows a second person to perform the duties when the employee primarily
responsible is unavailable. Having someone else perform the job duties also provides a method of detecting errors and/or
irregularities created by the person primarily responsible for those duties. Finally, cross -training provides continuity during
periods of employee transitions. Cross -training offers advantages from both an accounting and a managerial point of
view.
We recommend the review of various responsibilities and cross -train other staff to perform non -routine duties on a timely
basis in the absence of the individual typically responsible for such duties. Other remedies would be to have an outside
source familiar in these specific areas be contracted when deemed necessary to keep the Commission current in the
financial area.
13
HUTCHINSON UTILITIES COMMISSION
AUDITED FINANCIAL STATEMENTS AND
SUPPLEMENTARY INFORMATION
DECEMBER 31, 2020
CONWAY, DEUTH & SCHMIESING, PLLP
CPAS & ADVISORS
LITCHFIELD, MINNESOTA
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HUTCHINSON UTILITIES COMMISSION
TABLE OF CONTENTS
DECEMBER 31, 2020
ORGANIZATIONAL DATA
INDEPENDENT AUDITOR'S REPORT
REQUIRED SUPPLEMENTARY INFORMATION
Management's Discussion and Analysis
BASIC FINANCIAL STATEMENTS
Statement of Net Position
Statement of Revenues, Expenses and Changes in Net Position
Statement of Cash Flows
Notes to the Financial Statements
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of Net Pension Liability
Schedule of Employer Contributions
Schedule of Changes in the Commission's Total OPEB Liability
Notes to Required Supplementary Information
SUPPLEMENTARY INFORMATION
Combining Statement of Net Position
Combining Schedule of Revenues and Expenses
Schedule of Division Cash Flows
Statement of Net Position - Electric Division
Detailed Schedule of Revenues, Expenses and Changes in Net Position -
Budget and Actual - Electric Division
Statement of Net Position - Natural Gas Division
Detailed Schedule of Revenues, Expenses and Changes in Net Position -
Budget and Actual - Natural Gas Division
1
2-4
5-9
10
11
12-13
14-36
37
38
39
40-43
44
45
46-47
48
49-51
52
53-55
HUTCHINSON UTILITIES COMMISSION
TABLE OF CONTENTS
DECEMBER 31, 2020
COMPLIANCE SECTION
Independent Auditor's Report on Minnesota Legal Compliance
Independent Auditor's Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with
Government Auditing Standards
Summary Schedule of Prior Audit Findings
PAGE
56
57-58
59
HUTCHINSON UTILITIES COMMISSION
ORGANIZATIONAL DATA
DECEMBER 31, 2020
A Light and Power Commission was formed under the provisions of an amendment to the Hutchinson City Charter in
1935; the Commission was charged with the operation of the Municipal Electric Plant. Charter amendments approved
December 17, 1954, provided for a change in the name to Hutchinson Utilities Commission. Additional duties under that
amendment provided for the control and management of a municipal gas distribution system.
A revised city charter was adopted at a special election September 17, 1987. Some of the pertinent sections of this new
charter are briefly summarized in the following paragraphs.
The Commission shall have control and management of the Light Plant, the Light Plant distribution system, the Gas Plant
and the Gas Plant distribution system.
The Commission shall consist of five persons, qualified voters of the City, who shall be appointed by the Council. A
member shall be appointed every year for a term of five years, to fill the place of the member whose term has expired. No
member shall be appointed to more than two successive terms. The members of the Commission shall receive
compensation for their services as determined annually by the Council.
The Commission shall provide for its own organization and rules of procedure and annually shall elect a president and
vice president from among its members. It shall also appoint a secretary who may or may not be a member of the
Commission.
The Commissioners and their official titles were as follows:
Don Martinez
Matt Cheney
Robert Wendorff
Monty Morrow
Anthony Hanson
President
Vice President
Secretary
Commissioner
Commissioner
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INDEPENDENT AUDITOR'S REPORT
Members of the Hutchinson Utilities Commission
Hutchinson, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of Hutchinson Utilities Commission, a fund of the City of
Hutchinson, Minnesota, as of and for the year ended December 31, 2020 and the related notes to the financial
statements, which collectively comprise the Commission's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
2
lulls! III
WMI,.
www, rdscp a,c,orn
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Members: American Institute of Certified Public Accountants, Minnesota Society of Certified Public Accountaints
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of Hutchinson Utilities Commission, a fund of the City of Hutchinson, Minnesota, as of December 31, 2020, and
the changes in financial position, and cash flows for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Report on Partial Comparative Information
We have previously audited the Commission's 2019 financial statements, and we expressed an unmodified audit opinion
on those audited financial statements in our report dated May 27, 2020. In our opinion, the partial comparative
information presented herein as of and for the year ended December 31, 2019 is consistent, in all material respects, with
the audited financial statements from which it has been derived.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and
Analysis, the Schedule of Proportionate Share of Net Pension Liability, the Schedule of Employer Contributions, the
Schedule of Changes in the Commission's Total OPEB Liability and the related notes as listed in the table of contents be
presented to supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with management's responses to
our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the
Commission's basic financial statements. The statements and schedules listed in the table of contents as supplementary
information and the Organizational Data section are presented for purposes of additional analysis and are not a required
part of the basic financial statements.
The supplementary information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting and other records
used to prepare the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the
supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The Organizational Data section has not been subjected to the auditing procedures applied in the audit of the basic
financial statements and, accordingly, we do not express an opinion or provide any assurance on the information
presented.
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 31, 2021, on our
consideration of the Commission's internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to
describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the effectiveness of the Commission's internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the Commission's internal control over financial reporting and compliance.
Cori, Z)c �iesl , 7,/
CONWAY, DEUTH & SCHMIESING, PLLP
CPAS & ADVISORS
LITCHFIELD, MINNESOTA
March 31, 2021
4
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REQUIRED SUPPLEMENTARY INFORMATION
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HUTCHINSON UTILITIES COMMISSION
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2020
Overview of the Financial Statements
Hutchinson Utilities Commission is a fund of the City of Hutchinson, Minnesota, and is responsible for the full operation
and management of the electric and natural gas systems of the City. The annual report of Hutchinson Utilities
Commission includes the financial statements, the independent auditor's report, and notes detailing the financial
statements and this management's discussion and analysis report. The report also includes supplementary information
for each of Hutchinson Utilities Commission's divisions.
Financial Statements Required
The financial statements report information about Hutchinson Utilities Commission using accounting methods similar to
those used by private sector companies. These statements offer short-term and long-term financial information about its
activities.
The Statement of Net Position includes all of the Commission's assets and deferred outflows of resources, liabilities and
deferred inflows of resources, and net position and provides information regarding the nature and amount of investments
in various assets and obligations to the Commission's creditors. They also provide the basis for computing rate of return,
evaluating the capital structure, and determining the liquidity and financial flexibility of the Commission.
The Statement of Revenues, Expenses and Changes in Net Position accounts for all the current year's revenues and
expenses. This statement measures the success of operations over the past year and can be used to determine whether
all costs are recovered through user fees and other charges. This statement measures the Commission's profitability and
credit worthiness.
The Statement of Cash Flows provides information about the Commission's cash receipts and cash payments during the
reporting period. This statement reports cash receipts, cash payments, and net changes in cash resulting in cash
balances during the reporting period.
Financial Statement Analvsis
Total gross investment in capital assets increased to $155,497,559 in 2020 from $153,956,540 in 2019. Capital assets
increased $1,541,019 primarily because of upgrades and improvements to the generating plant and distribution systems
as well as equipment purchases.
Operating revenues and operating income decreased from 2019 by $2,411,271 and $642,832, respectively. Operating
expenses decreased from 2019 by $1,768,439. The primary decrease in operating revenues was due to a decrease in
electric and gas sales in 2020, which decreased by $1,375,731 and $835,893, respectively, from 2019.
The primary area of the decrease in operating expenses was due to a decrease in purchased power/gas expenses
caused by decreased sales and lower market pricing.
Payment in Lieu of Taxes increased by $265,768 due to the current agreement with the City of Hutchinson
5
HUTCHINSON UTILITIES COMMISSION
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2020
Significant Transactions
In 2020, the Commission transferred $1,867,192 per agreement to the City of Hutchinson. The Commission also
received a refund from Missouri River Energy Services (MRES) of approximately $1.2 million as a one-time refund to its
utility members.
Condensed Financial Statements
A summary of the Statement of Net Position is presented in Table 1.
Table 1
Condensed Statement of Net Position
Current Assets
Restricted Assets
Net Capital Assets
Total Assets
Deferred Outflows of Resources
Total Assets and Deferred
Outflows of Resources
Current Liabilities
Long -Term Liabilities
Total Liabilities
Deferred Inflows of Resources
Net Position
Net Investment in Capital Assets
Unrestricted
Total Net Position
Increase
2020 2019
$ 31,262,932 $ 28,021,482 $ 3,241,450
3,680,239 3,575,572 104,667
76,734,063 78,891,267 (2,157,204)
111,677,234 110,488,321 1,188,913
417,556 292,332
$ 112,094,790 $ 110,780,653 $
$ 3,098,734 $ 3,133,042 $
33,000,428 34,789,314 _
36,099,162 37,922,356
164,556 734,363
125.224 1
1,314,137 1
(34,308)
(1,788,886)
(1,823,194)
(569,807)
52,270,140
52,003,611
266,529
23,560,932
20,120,323
3,440,609
75,831,072
72,123,934
3,707,138
Total Liabilities, Deferred Inflows of
Resources and Net Position $ 112,094,790 $ 110,780,653 $
Is"
1.314.137 1
HUTCHINSON UTILITIES COMMISSION
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2020
Condensed Financial Statements (Cont'd)
A summary of the Statement of Revenues, Expenses and Changes in Net Position is presented in Table 2.
Table 2
Condensed Statement of Revenues, Expenses and Changes in Net Position
Increase
2020 2019 (Decrease
Operating Revenues
Operating Expenses
Cost of Operations
Depreciation
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses)
Change in Net Position
Net Position, Beginning of Year
Net Position, End of Year
Budgetary Highlights
$ 37,980,837 $ 40,392,108 $ (2,411,271)1
32,181,364
34,035,418
(1,854,054)
3,893,094
3,807,479
85,615
36,074,458
37,842,897
(1,768,439)
1,906,379
2,549,211
(642,832)
1,800,759 (261,968) 2,062,727
3,707,138 2,287,243 1,419,895
72,123,934 69,836,691 2,287,243
$ 75,831,072 $ 72,123,934 $ 3,707,138
The Commission adopts an annual Operating Budget and a Capital Improvement Budget. Because of its enterprise
nature and in order to comply with Federal Energy Regulatory Commission accounting and reporting requirements, the
budgets are not operated as statutory budgets. The Commission and Utilities staff review budget results monthly and the
budget is used as a financial management tool. A summary of the 2020 Budget Analysis is presented in Table 3.
7
HUTCHINSON UTILITIES COMMISSION
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2020
Budgetary Highlights (Cont'd)
Operating Revenues
Operating Expenses
Cost of Operations
Depreciation Expense
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses)
Change in Net Position
Net Position, Beginning of Year
Net Position, End of Year
Table 3
Condensed Budget Analysis
2020 Budget 2020 Actual Over
$ 40,637,889 $ 37,980,837 $ (2,657,052)
34,809,923
32,181,364
(2,628,559)
3,925,000
3,893,094
(31,906)
38,734,923
36,074,458
(2,660,465)
1,902,966
1,906,379
3,413
(505,543) 1,800,759 2,306,302
1,397,423 3,707,138 2,309,715
72,123,934 72,123,934
$ 73,521,357 $ 75,831,072 $ 2,309,715
Actual operating revenues were $2,657,052 under budgeted revenues while operating income (loss) was over budget by
$3,413. The actual operating revenues for the Commission had a variance of approximately -6.54% from budgeted
operating revenues.
Operating expenses were $2,660,465 less than budgeted. Expenses were less than budgeted in all departments of the
Electric Fund except Other Power Supply. The Natural Gas Fund had less operating expenses than budgeted for in all
departments except for Administrative and General and Depreciation.
In 2018, the Commission entered into an agreement for a specific Payment in Lieu of Taxes (PILOT). The agreement
requires the Commission to make payments equaling $1,867,192 in 2020.
Starting in calendar year 2007, the Commission reallocated its common expenses between the two divisions. Formulas
were developed and used to establish the common expenses between the two utilities, in particular, Customer Service
and Collection Accounts and the Administrative and General Accounts.
Capital Assets and Long -Term Liability Activity
The Commission's investment in capital assets increased to $155,497,559 in 2020. This is an increase of $1,541,019
from 2019. Refer to Note 5 of the Notes to the Financial Statements for the Commission's 2020 capital asset activity.
At year-end, the Commission had $26,480,000 in bonds outstanding and $709,251 in compensated absences. Refer to
Note 6 of the Notes to the Financial Statements for a schedule showing the Commission's long-term liability activity.
HUTCHINSON UTILITIES COMMISSION
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2020
Economic Factors and Next Year's Budget
The Commission considered many local community and external energy industry factors when setting the Electric & Gas
Division fiscal year 2021 budgets, rates, and fees that will be charged to customers. Of significance was the continual
increase in costs associated with purchased electrical wholesale power and transmission fees. Conversely, the Gas
Division continues to see favorable prices for the procurement of the natural gas commodity. Both divisions continue to
see consistent energy consumption forecasts in the near future. In addition, the Payment in Lieu of Taxes (PILOT) was
set for 2021 based on a three year phase in up to 4.50%, starting with 3.25% in 2018.
The Commission continued to "bundle" its electric wholesale rate to its retail customers. What this means is the
operating income the Commission receives from its wholesale KWHR sales is applied to the wholesale rate it charges its
retail customers. This "bundling" effect reduces the overall blended cost of wholesale power which aids in retail rate
pricing stability.
Contact Information
Any questions regarding information contained in this report and requests for additional information should be addressed
to the Hutchinson Utilities Commission, 225 Michigan Street SE, Hutchinson, MN 55350 or by phone at (320) 587-4746.
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BASIC FINANCIAL STATEMENTS
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HUTCHINSON UTILITIES COMMISSION
STATEMENT OF NET POSITION
DECEMBER 31, 2020
WITH PARTIAL COMPARATIVE AMOUNTS AS OF DECEMBER 31, 2019
2020
2019
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Assets
Current Assets
Cash and Investments
$ 25,578,167 $
22,385,608
Receivables
Accounts Receivable (Net of Allowance for Doubtful Accounts of
$80,591 and $79,851, Respectively)
3,471,561
3,477,838
Interest Receivable
97,986
115,964
Sales Tax Receivable
124,247
88,591
Inventory
1,961,383
1,875,616
Prepaid Items
29,588
77,865
Total Current Assets
31,262,932
28,021,482
Noncurrent Assets
Restricted Assets
Cash and Investments
3,680,239
3,575,572
Capital Assets
Assets Not Being Depreciated
4,994,239
20,413,726
Other Capital Assets, Net of Depreciation
71,739,824
58,477,541
Net Capital Assets
76,734,063
78,891,267
Total Noncurrent Assets
80,414,302
82,466,839
Total Assets
111,677,234
110,488,321
Deferred Outflows of Resources
417,556
292,332
Total Assets and Deferred Outflows of Resources
$ 112,094,790 $
110,780,653
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION
Liabilities
Current Liabilities
Accounts Payable
$ 2,294,443 $
2,374,021
Customer Deposits
425,065
444,651
Accrued Expenses
Interest
82,542
89,542
Salaries Payable
296,684
224,828
Total Current Liabilities
3,098,734
3,133,042
Long -Term Liabilities
Net Pension Liability
4,034,943
3,582,647
Total OPEB Liability
112,072
102,003
Other Long -Term Liabilities Due Within One Year
2,488,309
2,345,382
Other Long -Term Liabilities Due in More Than One Year
26,365,104
28,759,282
Total Long -Term Liabilities
33,000,428
34,789,314
Total Liabilities
36,099,162
37,922,356
Deferred Inflows of Resources
164,556
734,363
Net Position
Net Investment in Capital Assets
52,270,140
52,003,611
Unrestricted
23,560,932
20,120,323
Total Net Position
75,831,072
72,123,934
Total Liabilities, Deferred Inflows of Resources and Net Position
$ 112,094,790 $
110,780,653
See Accompanying Notes to the Financial Statements
10
HUTCHINSON UTILITIES COMMISSION
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
YEAR ENDED DECEMBER 31, 2020
WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2019
OPERATING REVENUES
Electric Energy Sales
Natural Gas Sales
Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES
Production
Operations
Maintenance
Purchased Power/Gas
Other Power Supply
Transmission
Operations
Maintenance
Distribution
Operations
Maintenance
Customer Accounts Expense
Sales Expense
Administrative and General
Depreciation
Contribution to City of Hutchinson
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
Interest Income
Merchandise and Contract Work, Net
Miscellaneous Income
Gain (Loss) on Disposal of Assets
Bond Premium
Interest Expense
Total Nonoperating Revenues (Expenses)
Change in Net Position
NET POSITION, BEGINNING OF YEAR
NET POSITION, END OF YEAR
See Accompanying Notes to the Financial Statements
11
2020 2019
$ 26,418,356 $
27,794,087
9,800,541
10,636,434
1,761,940
1,961,587
37,980,837
40,392,108
2,924,639
3,170,008
558,907
606,237
18,424,450
19,737,334
340,060
261,558
2,549,963 3,218,265
21,001 29,787
1,820,744
1,795,541
613,203
552,560
442,142
425,635
340,934
304,720
2,278,129
2,258,657
3,893,094
3,807,479
1,867,192
1,675,116
36,074,458
37,842,897
1,906,379
2,549,211
737,924 617,459
177,632
(63,843)
1,686,800
138,334
54,616
219,066
219,065
(1,075,279)
(1,172,983)
1,800,759
(261,968)
3,707,138
2,287,243
72,123,934 69,836,691
$ 75,831,072 $ 72,123,934
HUTCHINSON UTILITIES COMMISSION
STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2020
WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers
Payments Received from Other Sources
Payments to Suppliers
Payments to Employees
Net Cash Provided (Used) by Operating Activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Other Noncapital Income (Expense)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Additions to Utility Plant
Proceeds from Sale of Assets
Principal Payments on Long -Term Debt
Interest Paid on Long -Term Debt
Net Cash Provided (Used) by Capital and Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Income
Net Increase (Decrease) in Cash and Cash Equivalents
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
RECONCILIATION OF CASH AND CASH EQUIVALENTS
Current Assets - Cash and Investments
Restricted Assets - Cash and Investments
Total Cash and Cash Equivalents
See Accompanying Notes to the Financial Statements
12
2020 2019
$ 36,205,588 $ 38,580,845
1,726,284
1,906,086
(27,625,292)
(30,627,673)
(4,766,135)
(4,623,646)
5,540,445
5,235,612
1,864,432 74,491
(1,739,468)
(4,617,772)
58,194
(2,100,000)
(1,995,000)
(1,082,279)
(1,180,775)
(4,863,553)
(7,793,547)
755,902 548,759
3,297,226 (1,934,685)
25,961,180 27,895,865
$ 29,258,406 $ 25,961,180
$ 25,578,167 $ 22,385,608
3,680,239 3,575,572
$ 29,258,406 $ 25,961,180
HUTCHINSON UTILITIES COMMISSION
STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2020
WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2019
RECONCILIATION OF OPERATING INCOME (LOSS) TO CASH FLOWS FROM
OPERATING ACTIVITIES
Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by
Operating Activities
Depreciation
Pension Related Adjustments
OPEB Related Adjustments
(Increase) Decrease in Assets
Accounts Receivable
Sales Tax Receivable
Inventory
Prepaid Items
Increase (Decrease) in Liabilities
Accounts Payable
Customer Deposits
Salaries Payable
Compensated Absences
Net Cash Provided (Used) by Operating Activities
See Accompanying Notes to the Financial Statements
13
2020 2019
$ 1,906,379 $ 2,549,211
3,893,094 3,807,479
(239,563) 8,154
6,897 7,555
6,277
156,028
(35,656)
(55,501)
(85,767)
(216,866)
48,277
(17,589)
(79,578)
(1,091,516)
(19,586)
(5,704)
71,856
37,007
67,815
57,354
$ 5,540,445 $ 5,235,612
HUTCHINSON UTILITIES COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. REPORTING ENTITY
Hutchinson Utilities Commission, a fund of the City of Hutchinson, Minnesota, is governed by five
members who are appointed by the Council of the City of Hutchinson, Minnesota. The accompanying
financial statements present only the Hutchinson Utilities Commission fund and are not intended to
present fairly the financial position of the City of Hutchinson, Minnesota.
The financial statements present the Commission and its component units. The Commission includes all
funds, organizations, institutions, agencies, departments and offices that are not legally separate from
such. Component units are legally separate entities for which the Commission is financially accountable,
or for which the exclusion of the component unit would render the financial statements of the
Commission misleading.
The criteria used to determine if the Commission is financially accountable for a component unit includes
whether or not 1) the Commission appoints the voting majority of the potential component unit's
governing body and is able to impose its will on the potential component unit or is in a relationship of
financial benefit or burden with the potential component unit, or 2) the potential component unit is fiscally
dependent on and there is a potential for the potential component unit to provide specific financial
benefits to, or impose specific financial burdens on, the Commission.
As a result of applying the component unit definition criteria above, the Commission does not have any
component units.
B. FUND ACCOUNTING
The operations of the Commission are recorded as a proprietary fund. The proprietary fund is used to
account for operations (a) that are financed and operated in a manner similar to private business
enterprises - where the intent of the governing body is that the costs (expenses, including depreciation)
of providing goods or services to the general public on a continuing basis be financed or recovered
primarily through user charges; or (b) where the governing body has decided that periodic determination
of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public
policy, management control, accountability or other purposes.
C. MEASUREMENT FOCUS. BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION
The financial statements include the operations of the City of Hutchinson Municipal Utilities. The Electric
and Natural Gas divisions are treated as a single enterprise fund of the City of Hutchinson, Minnesota.
The Utilities are governed by the Hutchinson Utilities Commission, which is appointed by the City
Council. No other operations are controlled by the Hutchinson Utilities Commission. The accounts of the
Commission are organized on the basis of fund accounting. The operation of the fund is accounted for
with a separate set of self -balancing accounts that comprise its assets, liabilities, net position, revenues,
and expenses. Government resources are allocated to and accounted for in the individual fund based
upon the purposes for which they are to be spent and the means by which spending activities are
controlled.
Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported
in the financial statements. Basis of accounting relates to the timing of the measurements made,
regardless of the measurement focus applied.
14
HUTCHINSON UTILITIES COMMISSION
NOTE 1
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION
(Cont'd)
The proprietary fund is accounted for using the accrual basis of accounting and economic resources
measurement focus. Revenues are recognized when earned, and expenses are recognized when
incurred. Revenue from electricity and gas sales is reflected in the accounts only at the time such
revenue is actually billed to customers. Accordingly, no recognition is given in the accounts for revenue
from sales between established cycle billing dates.
The proprietary fund distinguishes operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and delivering
goods in connection with a proprietary fund's principal ongoing operations. The principal operating
revenues of the enterprise funds are charges to customers for sales and services. Operating expenses
for enterprise funds include the cost of sales and services, administrative expenses, and depreciation of
capital assets. All revenues and expenses not meeting this definition are reported as nonoperating
revenues and expenses.
It is generally the Commission's policy to use restricted resources first, then unrestricted resources as
they are needed when an expense is incurred for purposes for which both restricted and unrestricted net
position is available.
D. DEPOSITS AND INVESTMENTS
The Commission's cash and cash equivalents are considered to be cash on hand, deposits and highly
liquid debt instruments purchased with original maturities of three months or less from the date of
acquisition.
The Commission may invest in the following types of investments as authorized by Minn. Stat.
§§118A.04 and 118A.05:
(1) securities which are direct obligations or are guaranteed or insured issues of the United States, its
agencies, its instrumentalities, or organizations created by an act of Congress, except mortgage -
backed securities defined as "high risk" by Minn. Stat. §118A.04, subd. 6;
(2) mutual funds through shares of registered investment companies provided the mutual fund receives
certain ratings depending on its investments;
(3) general obligations of the State of Minnesota and its municipalities, and in certain state agency and
local obligations of Minnesota and other states provided such obligations have certain specified
bond ratings by a national bond rating service;
(4) time deposits that are fully insured by the Federal Deposit Insurance Corporation or bankers
acceptances of United States banks;
(5) commercial paper issued by United States corporations or their Canadian subsidiaries that is rated
in the highest quality category by at least two nationally recognized rating agencies and matures in
270 days or less; and
15
HUTCHINSON UTILITIES COMMISSION
NOTE 1
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
D. DEPOSITS AND INVESTMENTS (Cont'd)
(6) with certain restrictions, in repurchase agreements, securities lending agreements, joint powers
investment trusts, and guaranteed investment contracts.
Cash and investments were comprised of deposit accounts, money market accounts, municipal bonds,
FHLB bonds, and negotiable certificates of deposit.
The Commission categorizes its fair value measurements within the fair value hierarchy established by
accounting principles generally accepted in the United States of America. The hierarchy is based on the
valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active
markets for identical assets. Level 2 inputs are significant other observable inputs. Level 3 inputs are
significant unobservable inputs.
The Commission has an investment policy in place that addresses interest rate risk, credit risk,
concentration of credit risk and custodial risk as follows:
Custodial Credit Risk - Deposits: For deposits, this is the risk that in the event of bank failure, the
Commission's deposits may not be returned to it. Minnesota Statutes requires that all Commission
deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged
must equal 110 percent of deposits. The Commission's investment policy states the collateralization
level will be 110% of the market value of principal and accrued interest. When the pledged collateral
consists of notes secured by first mortgages, the collateral level will be 140% of the market value of
principal and accrued interest.
Authorized collateral includes the obligations of the U.S. Treasury, agencies, and instrumentalities,
shares of investment companies whose only investments are in the aforementioned securities,
obligations of the State of Minnesota or its municipalities, bankers' acceptances, futures contracts,
repurchase and reverse repurchase agreements, and commercial paper of the highest quality with a
maturity of no longer than 270 days, as well as certain first mortgage notes, and certain other state or
local government obligations. Minnesota statutes require that securities pledged as collateral be held in
safekeeping by the Commission treasurer or in a financial institution other than that furnishing the
collateral.
Interest Rate Risk - This is the risk that market values of securities in a portfolio would decrease due to
changes in market interest rates. The Commission's investment policy states the Commission should
manage their interest rates based on safety, liquidity and the overall rate of return on the investment.
The portfolio should contain both short-term and long-term investments to meet anticipated cash flow
requirements. Extended maturities may be utilized to take advantage of higher yields; however, no
investment shall be made with a term of more than ten years.
Credit Risk - Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. State law limits investments in commercial paper and corporate bonds to the top two ratings
issued by nationally recognized statistical rating organizations. The Commission's investment policy
states it will comply with Minnesota Statutes Chapter 118A.
16
HUTCHINSON UTILITIES COMMISSION
NOTE 1
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
D. DEPOSITS AND INVESTMENTS (Cont'd)
Concentration of Credit Risk: This is the risk of loss attributed to the magnitude of an investment in a
single issuer. Investments should be diversified to avoid incurring unreasonable risk inherent in over
investing in specific instruments, individual financial institutions or maturities. The Commission's
investment policy states the Commission will attempt to diversify its investments according to type and
maturity.
Custodial Credit Risk - Investments: For an investment, this is the risk that in the event of the failure of
the counterparty, the Commission will not be able to recover the value of its investments or collateral
securities that are in the possession of an outside party. The Commission's investment policy states
when investments purchased by the Commission are held in safekeeping by a broker/dealer, they must
provide asset protection of $500,000 through the Securities Investor Protection Corporations (SIPC) and
at least another $2,000,000 Supplemental Insurance Protection, provided by the broker dealer.
E. RECEIVABLES AND OPERATING REVENUES AND EXPENSES
An allowance for doubtful accounts is recorded based on historical electric and natural gas revenues,
historical loss levels, and an analysis of the collectability of individual accounts.
Meters are read throughout the month and revenues are recognized when utility services are billed to
customers. Hutchinson Utilities Commission did not accrue revenues for services provided but not billed
at the end of the year.
Monthly billings from the wholesale power and natural gas suppliers, which are for power and natural
gas costs to the last day of the month, are reflected in the accounts.
F. INVENTORY
Inventories of materials and supplies are recorded at average cost, which does not exceed market.
G. PREPAID ITEMS
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in the financial statements.
H. CAPITAL ASSETS
Capital assets, both tangible and intangible, which include property, plant, equipment and infrastructure
assets (e.g., roads, sidewalks and similar items) and easements, are recorded at cost. The cost of
additions to capital assets includes contracted work, direct labor, and materials. Major outlays for capital
assets and improvements are capitalized as projects are constructed. Repairs, replacement, and the
renewal of items determined to be less than units of property are charged to maintenance. Donated
assets are recorded as capital assets at their estimated acquisition value at the date of donation.
17
HUTCHINSON UTILITIES COMMISSION
NOTE 1
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
H. CAPITAL ASSETS (Cont'd)
Tangible and intangible assets of the Commission are depreciated using the straight-line, full month
convention method over the following estimated useful lives:
Buildings
35-60 years
Transmission plant (electric)
20-35 years
Distribution plant (electric)
20-35 years
Building improvement
15-30 years
Transmission plant (gas)
10-45 years
Distribution plant (gas)
10-45 years
Generation plant
10-30 years
General plant
5-10 years
Vehicles
5-10 years
Office equipment
3-5 years
Computer equipment
3-5 years
Capital assets not being depreciated include land, easements and construction in progress, if any.
I. DEFERRED OUTFLOWS OF RESOURCES
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. Deferred outflows of resources represents a consumption of net position
that applies to a future reporting period. During that future period, it will be recognized as an outflow of
resources (expense). The Commission has two items that qualify for reporting in this category on the
financial statements which is related to pensions and other post -employment benefits.
J. COMPENSATED ABSENCES
The liability for compensated absences reported in the financial statements consists of unpaid,
accumulated vacation and sick leave balances. The liability has been calculated using the vesting
method, in which leave amounts for both employees who currently are eligible to receive termination
payments and other employees who are expected to become eligible in the future to receive such
payments upon termination are included. Compensated absences are accrued when incurred in the
financial statements. The Statement of Net Position reports both current and noncurrent portions of
compensated absences using full accrual accounting. The current portion consists of an amount based
on a trend analysis of current usage of vacation and vested sick leave. The noncurrent portion consists
of the remaining amount of vacation and total vested sick leave.
Both union and nonunion employees can accrue a maximum of 200 hours per year of vacation pay. A
nonunion employee may carry over a maximum of one time their annual accrual of vacation into the next
year. Each permanent nonunion full-time employee must use at least 40 hours of vacation per year. A
union employee may carry over up to forty hours of accrued vacation into the next year. Vacation pay is
100% payable at severance of employment. A maximum of 720 hours can be accrued for sick leave.
After accumulation of 720 hours, a payback of one-third of the amount over 720 hours will be made
annually. Upon retirement or death before retirement, severance payable is paid back at one-third of the
amount over 240 hours will be made.
18
HUTCHINSON UTILITIES COMMISSION
NOTE 1
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
K. PENSIONS
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows
of resources related to pensions, and pension expense, information about the fiduciary net position of
the Public Employees Retirement Association (PERA) and additions to/deductions from PERA's fiduciary
net position have been determined on the same basis as they are reported by PERA. For this purpose,
plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds
are recognized when due and payable in accordance with the benefit terms. Investments are reported at
fair value.
The Commission participates in various pension plans; total pension expense for the fiscal year ended
was $128,170. The components of pension expense are noted in the plan summaries.
L. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
Employees of the Commission pay premiums based on a negotiated schedule. Since the insurance rate
is not based on age, the Commission has an implicit rate subsidy factor in postemployment health care
expenses. Additionally, Minnesota Statutes require the Commission to allow retired employees to stay
on the health care plan with the retiree responsible to pay the entire premium for continuation coverage.
The Commission's bargaining agreement and personnel policy do not provide for any contributions upon
employee retirement.
M. LONG-TERM OBLIGATIONS
Long-term debt and other long-term obligations are reported as liabilities in the financial statements.
Bond discounts and bond premiums are amortized over the terms of the related bond issues.
N. DEFERRED INFLOWS OF RESOURCES
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. Deferred inflows of resources represents an acquisition of net position
that applies to a future reporting period. During that future period, it will be recognized as an inflow of
resources (revenue). The Commission has one item that qualifies for reporting in this category on the
financial statements which is related to pensions.
O. NET POSITION
Net position represents the difference between assets plus deferred outflows of resources and liabilities
plus deferred inflows of resources in the financial statements. Net investment in capital assets consists
of capital assets, net of accumulated depreciation, reduced by the outstanding balance of any long-term
debt used to build or acquire the capital assets. Net position is reported as restricted in financial
statements when there are limitations on its use through external restrictions imposed by creditors,
grantors or laws or regulations of other governments. Unrestricted net position consists of all other net
position that does not meet the definition of restricted or net investment in capital assets.
19
HUTCHINSON UTILITIES COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
P. BUDGETS AND BUDGETARY ACCOUNTING
The General Manager is responsible for preparing and submitting an annual budget. Budgets are
adopted on a basis consistent with accounting principles generally accepted in the United States of
America.
Q. USE OF ESTIMATES
The preparation of the financial statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect the
reported amount of assets and deferred outflows of resources, and liabilities and deferred inflows of
resources and disclosure of contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates.
R. PRIOR YEAR INFORMATION
The basic financial statements include certain prior -year partial comparative information in total but not
at the level of detail required for a presentation in conformity with accounting principles generally
accepted in the United States of America. Accordingly, such information should be read in conjunction
with the Commission's financial statements for the year ended December 31, 2019, from which the
partial information was derived.
NOTE 2. DEPOSITS AND INVESTMENTS
A. DEPOSITS
In accordance with applicable Minnesota Statutes, Hutchinson Utilities Commission maintains deposits
at depository banks authorized by the Commission.
Custodial Credit Risk - Deposits: The Commission's bank balances were not exposed to custodial credit
risk because they were fully insured through the Federal Deposit Insurance Corporation as well as
collateralized with securities held by the pledging financial institution's trust department or agent and in
the Commission's name.
Deposits in Bank $ 16,005,763
Money Market Accounts 169,782
Petty Cash 850
Total Deposits $ 16,176,395
20
HUTCHINSON UTILITIES COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
NOTE 2. DEPOSITS AND INVESTMENTS (Cont'd)
B. INVESTMENTS
The Commission had the following investments:
Interest Rate
Risk
Fair
Value Maturity Date
Municipal Bonds $ 9,707,734 1-10 years
FHLB Bonds 771,778 1-3 years
Negotiable Certificates of Deposit 2,602,499 1-5 years
Total Investments $ 13,082,011
The Municipal Bonds were rated A2/AA-. The FHLB Bonds were rated Aaa/AA+. The Negotiable
Certificates of Deposit were not rated.
Investment's fair value measurements are as follows:
Fair Value Measuring Unit
Fair Level Level Level
Value Inputs Inputs Inputs
Municipal Bonds $ 9,707,734 $ $ 9,707,734 $
FHLB Bonds 771,778 771,778
Negotiable Certificates of Deposit 2,602,499 2,602,499
Total Investments $ 13,082,011 2,602,499 $ 10,479,512 $ 0
The following is a summary total of deposits and investments:
Deposits (Note 2.A.) $ 16,176,395
Investments (Note 2.B.) 13,082,011
Total Deposits and Investments $ 29,258,406
Deposits and investments are presented in the basic financial statements as follows:
Current Assets
Cash and Investments $ 25,578,167
Noncurrent Assets
Restricted Assets
Cash and Investments 3,680,239
Total Deposits and Investments $ 29,258,406
21
HUTCHINSON UTILITIES COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
NOTE 3. DEPOSITS AND INVESTMENTS - RESTRICTED
Restricted cash and investments are designated by bond covenants for specific purposes. Restricted cash
consisted of the following:
Public Utility Revenue Refunding Bonds, Series 2012A
Funds required to be held in a debt service reserve account based on
criteria set aside in the bond issuance document. $ 2,359,332
Public Utility Revenue Bonds, Series 2017B
Funds required to be held in a debt service reserve account based on
criteria set aside in the bond issuance document. 1,320,907
Total Cash and Investments - Restricted $ 3,680,239
The following items have been designated by the Commission for the following purposes:
Rate Stabilization - Electric $ 333,806
Rate Stabilization - Gas 651,307
Payment in Lieu of Taxes 1,867,192
Catastrophic 500,000
Expansion and Development Reserve Account
Funds designated for the expansion and development of the utility. 3,450,000
Total Cash and Investments - Designated $ 6,802,305
The above Commission designated amounts are included in the Current Assets -Cash and Investments total.
22
HUTCHINSON UTILITIES COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
NOTE 4. INVENTORY
Inventory consists of the following:
Electric Division
Fuel Oil and Lubricants
$ 110,673
Plant Systems Material
6,977
Engine Parts
866,468
Distribution Materials
380,518
Transformers
137,037
Total Electric Division
1,501,673
Natural Gas Division
Fittings 156,140
Transmission Line Gas 303,570
Total Natural Gas Division 459,710
Total Inventory $ 1,961,383
23
HUTCHINSON UTILITIES COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
NOTE 5. CAPITAL ASSETS
Capital asset activity was as follows:
Capital Assets, Not Being
Depreciated
Land
Easements
Construction in Progress
Total Capital Assets,
Not Being Depreciated
Capital Assets, Being Depreciated
Beginning Ending
Balance Increase Decrease Balance
$ 559,528 $ $ $ 559,528
4,030,760 4,030,760
15,823,438 554,434 (15,973,921) 403,951
20,413,726 554,434 (15,973,921) 4,994,239
Structures and Improvements 116,614,546 16,380,466 132,995,012
Equipment 16,719,636 778,489 (198,449) 17,299,676
Software 208,632 208,632
Total Capital Assets,
Being Depreciated 133,542,814 17,158,955 (198,449) 150,503,320
Less Accumulated Depreciation for
Structures and Improvements
64,117,411
3,330,978
67,448,389
Equipment
10,782,449
560,601
(194,871)
11,148,179
Software
165,413
1,515
166,928
Total Accumulated
Depreciation
75,065,273
3,893,094
(194,871)
78,763,496
Total Capital Assets, Being
Depreciated, Net
58,477,541
13,265,861
(3,578)
71,739,824
Net Capital Assets
$ 78,891,267
$ 13,820,295
$ (15,977,499)
$ 76,734,063
Depreciation expense was charged to the following functions
Electric Division $ 2,804,539
Natural Gas Division 1,088,555
Total Depreciation Expense $ 3,893,094
24
HUTCHINSON UTILITIES COMMISSION
NOTE 6.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
LONG-TERM LIABILITIES
A. COMPONENTS OF LONG-TERM LIABILITIES
Interest
Rates
Public Utility Revenue Refunding
Bonds, Series 2012A 4.00-5.00%
Public Utility Revenue Bonds, Series 2017B 2.50-4.00%
Bond Premium
Compensated Absences
Total Long -Term Liabilities
Final Balance
Maturity Outstanding
12/01/2026 $ 11,075,000
12/01 /2037 15,405,000
1,664,162
709,251
$ 28,853,413
On July 19, 2012, Hutchinson Utilities Commission issued Public Utility Revenue Refunding Bonds,
Series 2012A for $20,720,000, with an interest rate of 4.00% to 5.00%. The Commission issued the
bonds to advance refund a portion of the 2013 through 2025 maturities of the Public Utility Revenue
Bonds, Series 2003B. The Commission completed the refunding to reduce its debt service payment over
the next 14 years by $1,638,277. This results in an economic gain (difference between the present
values of the debt service payments on the old and new debt) of $1,245,620.
On October 31, 2017, the Hutchinson Utilities Commission issued Public Utility Revenue Bonds of 2017
for $16,675,000. The proceeds of the issue were used to purchase and install new generators for the
expansion of electric generation.
B. MINIMUM DEBT PAYMENTS
Annual debt service requirements to maturity for bonded debt is as follows:
Year Ending
December 31
Revenue Refunding
Bonds, Series 2012A
Principal Interest
Revenue Bonds,
Series 2017B
Principal Interest
2021
$ 1,565,000
$ 482,650
$ 675,000
$ 507,856
2022
1,730,000
420,050
700,000
480,856
2023
1,825,000
333,550
730,000
452,856
2024
1,895,000
278,800
760,000
423,656
2025
1,980,000
203,000
790,000
393,256
2026-2030
2,080,000
104,000
4,395,000
1,508,082
2036-2035
5,100,000
813,406
2035-2037
2,255,000
104,864
$ 11,075,000 $ 1,822,050 $ 15,405,000 $ 4,684,832
25
HUTCHINSON UTILITIES COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
NOTE 6. LONG-TERM LIABILITIES (Cont'd)
C. CHANGES IN LONG-TERM LIABILITIES
Revenue Refunding
Bonds
Revenue Bonds
Bond Premium
Compensated
Absences
Total Long -Term
Liabilities
Beginning
Balance
$ 12,530,000 $
16,050,000
1,883,228
Ending Due Within
Additions Reductions Balance One Year
$ (1,455,000) $ 11,075,000 $ 1,565,000
(645,000) 15,405,000 675,000
(219,066) 1,664,162 219,065
641,436 440,779 (372,964) 709,251 29,244
$ 31,104,664 $ 440,779 $ (2,692,030) $ 28,853,413 $ 2,488,309
D. PLEDGED REVENUES
Future revenue pledged for the payment of long-term debt is as follows:
Bond Issue/
Percent
Use of Proceeds/
of Total Term of
Type
Debt Service Pledge
Revenue Refunding
Bonds,
Series 2012A
Natural Gas
Utility Charges
100% 2012-2026
Revenue Bonds,
Series 2017B
Electric
Utility Charges 100% 2017-2037
NOTE 7. RISK MANAGEMENT
Remaining Principal Pledged
Principal and Interest Revenue
and Interest Paid Received
$ 12,897,050 $ 1,995,850 $ 9,800,541
20,089,832 1,178,656 26,418,356
The Commission purchases commercial insurance coverage through the League of Minnesota Cities
Insurance Trust (LMCIT), which is a public entity risk pool currently operating as a common risk
management and insurance program, with cities in the state. The Commission pays an annual premium to
the LMCIT for its insurance coverage. The LMCIT is self-sustaining through commercial companies for
excess claims. The Commission is covered through the pool for any claims incurred but unreported, but
retains risk for the deductible portion of its insurance policies. The amount of these deductibles is considered
immaterial to the financial statements.
There were no significant reductions in insurance from the previous year or settlements in excess of
insurance coverage for any of the past three fiscal years.
26
HUTCHINSON UTILITIES COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
NOTE 7. RISK MANAGEMENT (Cont'd)
The Commission's workers' compensation insurance policy is retrospectively rated. With this type of policy,
final premiums are determined after loss experience is known. The amount of premium adjustment for 2020
is estimated to be immaterial based on workers' compensation rates and salaries for the year.
There are no other claims liabilities reported in the funds based on the requirements of accounting
standards, which requires that a liability for claims be reported if information prior to the issuance of the
financial statements indicates it is probable that a liability has been incurred at the date of the financial
statements and the amount of the loss can be reasonably estimated.
NOTE 8. DEFINED BENEFIT PENSION PLANS -STATEWIDE
A. PLAN DESCRIPTION
The Commission participates in the following cost -sharing multiple -employer defined benefit pension
plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA's
defined benefit pension plans are established and administered in accordance with Minnesota Statutes,
Chapters 353 and 356. PERA's defined benefit pension plans are tax qualified plans under Section
401(a) of the Internal Revenue Code.
General Employees Retirement Plan (GERP; General Employees Plan; accounted for in the General
Employees Fund):
All full-time and certain part-time employees of the Commission are covered by the General Employees
Plan. General Employees Plan members belong to the Coordinated Plan. Coordinated Plan members
are covered by Social Security.
B. BENEFITS PROVIDED
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state
statute and can only be modified by the state Legislature. Vested, terminated employees who are
entitled to benefits, but are not receiving them yet, are bound by the provisions in effect at the time they
last terminated their public service.
GFRP Renefits-
General Employees Plan benefits are based on a member's highest average salary for any five
successive years of allowable service, age, and years of credit at termination of service. Two methods
are used to compute benefits for PERA's Coordinated Plan members. Members hired prior to July 1,
1989, receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired
after June 30, 1989. Under Method 1, the accrual rate for Coordinated members is 1.2% of average
salary for each of the first 10 years of service and 1.7% of average salary for each additional year. Under
Method 2, the accrual rate for Coordinated members is 1.7% of average salary for all years of service.
For members hired prior to July 1, 1989 a full annuity is available when age plus years of service equal
90 and normal retirement age is 65. For members hired on or after July 1, 1989 normal retirement age is
the age for unreduced Social Security benefits capped at 66.
27
HUTCHINSON UTILITIES COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
NOTE 8. DEFINED BENEFIT PENSION PLANS - STATEWIDE (Cont'd)
B. BENEFITS PROVIDED (Cont'd)
GERP Benefits: (Cont'd)
Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning
January 1, 2019, the postretirement increase will be equal to 50 percent of the cost -of -living adjustment
(COLA) announced by the SSA, with a minimum increase of at least 1 percent and a maximum of 1.5
percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June
30 before the effective date of the increase will receive the full increase. For recipients receiving the
annuity or benefit for at least one month but less than a full year as of the June 30 before the effective
date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024,
or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or
age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from
the delay to normal retirement.
C. CONTRIBUTIONS
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution
rates can only be modified by the state Legislature.
GERP Contributions:
Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in
fiscal year 2020; the Commission was required to contribute 7.50 percent for Coordinated Plan
members. The Commission's contributions to the General Employees Fund for the year ended
December 31, 2020, were $367,734. The Commission's contributions were equal to the required
contributions as set by state statute.
D. PENSION COSTS
GERP Pension Costs:
At December 31, 2020, the Commission reported a liability of $4,034,943 for its proportionate share of
the General Employees Fund's net pension liability. The Commission's net pension liability reflected a
reduction due to the State of Minnesota's contribution of $16 million. The State of Minnesota is
considered a non -employer contributing entity and the state's contribution meets the definition of a
special funding situation. The State of Minnesota's proportionate share of the net pension liability
associated with the Commission totaled $124,288. The net pension liability was measured as of June
30, 2020, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of that date. The Commission's proportionate share of the net pension liability was
based on the Commission's contributions received by PERA during the measurement period for
employer payroll paid dates from July 1, 2019, through June 30, 2020, relative to the total employer
contributions received from all of PERA's participating employers. The Commission's proportion share
was 0.0673 percent at the end of the measurement period and 0.0648 percent for the beginning of the
period.
28
HUTCHINSON UTILITIES COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
NOTE 8. DEFINED BENEFIT PENSION PLANS - STATEWIDE (Cont'd)
D. PENSION COSTS (Cont'd)
GERP Pension Costs: (Cont'd)
Commission's Proportionate Share of the Net Pension Liability $ 4,034,943
State of Minnesota's Proportionate Share of the
Net Pension Liability Associated With the Commission 124,288
Total $ 4,159,231
The following changes in plan provisions occurred during 2020:
Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through
December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June
30, 2020.
For the year ended December 31, 2020, the Commission recognized pension expense of $358,315 for
its proportionate share of GERP's pension expense. In addition, the Commission recognized an
additional $10,817 as pension expense (and grant revenue) for its proportionate share of the State of
Minnesota's contribution of $16 million to the General Employees Fund.
At December 31, 2020, the Commission reported its proportionate share of GERP's deferred outflows of
resources and deferred inflows of resources from the following sources:
Differences Between Expected and Actual Economic Experience
Changes in Actuarial Assumptions
Net Collective Difference Between Projected and
Actual Investment Earnings
Changes in Proportion
Contributions Paid to GERP Subsequent to Measurement Date
Totals
,Q]
Deferred Deferred
Outflows of Inflows of
Resources Resources
$ 35,424 $ 15,266
146,516
82,455
111,644 2,774
183,514
$ 413,037 $ 164,556
HUTCHINSON UTILITIES COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
NOTE 8. DEFINED BENEFIT PENSION PLANS - STATEWIDE (Cont'd)
D. PENSION COSTS (Cont'd)
GERP Pension Costs: (Cont'd)
The $183,514 reported as deferred outflows of resources related to pensions resulting from Commission
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and inflows
of resources related to pensions will be recognized in pension expense as follows:
Year ended December 31, Pension Expense Amount
2021 $
(175,612)
2022
32,048
2023
111,046
2024
97,485
E. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2020, actuarial valuation was determined using an individual
entry -age normal actuarial cost method and the following actuarial assumptions:
Actuarial Assumptions
Inflation
Salary Growth
Investment Rate of Return
GERP
2.50% per year
3.25% after 26 years of service
7.50%
Salary increases were based on a service -related table. Mortality rates for active members, retirees,
survivors, and disabilitants for all plans were based on RP 2014 tables for males or females, as
appropriate, with slight adjustments to fit PERA's experience. Cost of living benefit increases after
retirement for retirees are assumed to be 1.25 percent per year for the General Employees Plan.
Actuarial assumptions used in the June 30, 2020 valuation were based on the results of actuarial
experience studies. The most recent four-year experience study for the General Employees Plan was
completed in 2019. The assumption changes were adopted by the Board and become effective with the
July 1, 2020 actuarial valuation. The recommended assumptions for those plans were adopted by the
Board and will be effective with the July 1, 2021 actuarial valuations if approved by the Legislature.
The following changes in actuarial assumptions occurred in 2020:
GERP
Changes in Actuarial Assumptions:
The price inflation assumption was decreased from 2.50% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.00%.
30
HUTCHINSON UTILITIES COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
NOTE 8. DEFINED BENEFIT PENSION PLANS - STATEWIDE (Cont'd)
E. ACTUARIAL ASSUMPTIONS (Cont'd)
GERP (Cont'd)
Changes in Actuarial Assumptions: (Cont'd)
Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study
The net effect is assumed rates that average 0.25% less than previous rates.
Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study.
The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early
retirements.
Assumed rates of termination were changed as recommended in the June 30, 2019 experience study.
The new rates are based on service and are generally lower than the previous rates for years 2-5 and
slightly higher thereafter.
Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The
change results in fewer predicted disability retirements for males and females.
The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to
the Pub-2010 General Mortality table, with adjustments. The base mortality table for disabled annuitants
was changed from the RP-2014 disabled annuitant mortality table to the PUB-2010 General/Teacher
disabled annuitant mortality table, with adjustments.
The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
The assumed spouse age difference was changed from two years older for females to one year older.
The assumed number of married male new retirees electing the 100% Joint & Survivor option changed
from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint &
Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing
the Life annuity option was adjusted accordingly.
31
HUTCHINSON UTILITIES COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
NOTE 8. DEFINED BENEFIT PENSION PLANS - STATEWIDE (Cont'd)
E. ACTUARIAL ASSUMPTIONS (Cont'd)
Change in Plan Provisions: (Cont'd)
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the
reasonableness on a regular basis of the long-term expected rate of return using a building-block
method in which best -estimate ranges of expected future rates of return are developed for each major
asset class. These ranges are combined to produce an expected long-term rate of return by weighting
the expected future rates of return by the target asset allocation percentages. The target allocation and
best estimates of geometric real rates of return for each major asset class are summarized in the
following table:
Asset Class Target Allocation Long -Term Expected Real Rate of Return
Domestic Equity
35.50%
5.10%
Private Markets
17.50%
5.30%
Fixed Income
20.00%
0.75%
International Equity
25.00%
5.90%
Cash Equivalents
2.00%
0.00%
Total 100.00%
F. DISCOUNT RATE
The discount rate used to measure the total pension liability in 2020 was 7.50 percent. The projection of
cash flows used to determine the discount rate assumed that contributions from plan members and
employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary
net position of the General Employees Fund were projected to be available to make all projected future
benefit payments of current plan members. Therefore, the long-term expected rate of return on pension
plan investments was applied to all periods of projected benefit payments to determine the total pension
liability.
G. PENSION LIABILITY SENSITIVITY
The following presents the Commission's proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what
the Commission's proportionate share of the net pension liability would be if it were calculated using a
discount rate one percentage point lower or one percentage point higher than the current discount rate:
GERP
1 % Lower 6.50% $ 6,466,613
Current Discount Rate 7.50% 4,034,943
1 % Higher 8.50% 2,029,010
H. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about each pension plan's fiduciary net position is available in a separately -issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained on the Internet at www.mnpera.org.
32
HUTCHINSON UTILITIES COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
NOTE 9. DEFERRED COMPENSATION PLAN
The Commission offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan, available to all Commission employees, permits them to defer a
portion of their salary into future years. Participation in the plan is optional. The deferred compensation is not
available to employees until termination, retirement, death or unforeseeable emergency.
Investments are managed by the plan's trustee under one of four investment options, or a combination
thereof. The choice of the investment option(s) is made by the participants.
NOTE 10. OTHER POST -EMPLOYMENT BENEFITS (OPEB) PLAN
A. PLAN DESCRIPTION
The Commission operates a single -employer retiree benefit plan (the Plan) that provides health, dental,
and life insurance to eligible employees and their spouses through the District's commercial insurance
plans. There are 52 active participants and 1 retired participants. Benefit and eligibility provisions are
established through negotiations between the Commission and employee groups including a union. The
union contract is renegotiated each two-year bargaining period. The Plan does not issue a publicly
available financial report. No assets are accumulated in a trust that meets all of the criteria in GASB
Statement No. 75, paragraph 4.
B. TOTAL OPEB LIABILITY
The Commission's total OPEB liability of $112,072 was measured as of December 31, 2019, and was
determined by an actuarial valuation as of that date. Update procedures were used to roll forward the
total OPEB liability to December 31, 2020.
C. CHANGES IN TOTAL OPEB LIABILITY
Changes in the total OPEB liability were as follows:
Total OPEB
Liability
Balance at January 1, 2020 $ 102,003
Changes for the year
Service Cost 5,994
Interest 3,982
Differences Between Expected and Actual Experience (10,484)
Changes in Assumptions 11,924
Benefit Payments (1,347)
Net Changes in Total OPEB Liability 10,069
Balance at December 31, 2020 $ 112,072
33
HUTCHINSON UTILITIES COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
NOTE 10. OTHER POST -EMPLOYMENT BENEFITS (OPEB) PLAN (Cont'd)
C. CHANGES IN TOTAL OPEB LIABILITY (Cont'd)
Changes of assumptions and other inputs reflect a change in the discount rate from 3.71 % in 2019 to
2.75% in 2020.
Sensitivity of the total OPEB liability to changes in the discount rate. The following presents the total
OPEB liability of the Commission, as well as what the Commission's total OPEB liability would be if it
were calculated using a discount rate that is 1-percentage-point lower (1.75%) or 1-percentage-point
higher (3.75%) than the current discount rate:
Total OPEB Liability
1.0% Decrease 1.0% Increase
in Discount Discount Rate in Discount
Rate (1.75%) (2.75%) Rate (3.75%)
$ 121,752 $ 112,072 $ 102,854
Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The following presents
the total OPEB liability of the Commission, as well as what the Commission's total OPEB liability would
be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (5.20%
decreasing to 3.00%) or 1-percentage-point higher (7.20% decreasing to 5.00%) than the current
healthcare cost trend rates:
Total OPEB Liability
Healthcare Cost
1.0% Decrease
Trend Rates
1.0% Increase
(5.20%
(6.20%
(7.20%
decreasing
decreasing
decreasing
to 3.00%)
to 4.00%)
to 5.00%)
$ 98,039 $ 112,072 $ 128,568
D. OPEB EXPENSE, DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF
RESOURCES RELATED TO OPEB
For the year ended December 31, 2020, the Commission recognized OPEB expense of $6,897. At
December 31, 2020, the Commission reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Contributions Paid Subsequent to Measurement Date
Deferred Deferred
Outflows of Inflows of
Resources Resources
$ 4,519 $ 0
$4,519 reported as deferred outflows of resources related to OPEB resulting from Commission
contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB
liability in the year ended December 31, 2021.
34
HUTCHINSON UTILITIES COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
NOTE 10. OTHER POST -EMPLOYMENT BENEFITS (OPEB) PLAN (Cont'd)
E. ACTUARIAL METHODS AND ASSUMPTIONS
The total OPEB liability in the December 31, 2019 actuarial valuation was determined using the following
actuarial assumptions and other inputs, applied to all periods included in the measurement, unless
otherwise specified:
Inflation
Salary Increases
Healthcare Cost Trend Rates
Retiree's Share of Benefit -Related Costs
2.50%
Based on the most recently disclosed
assumptions for the pension plan in which the
employee participates.
6.20% for 2020, decreasing on average .04% per
year to an ultimate rate of 4.00% for 2075 and
later years.
Assumed to increase with healthcare trend rates.
A discount rate of 2.75% was applied in the measurement of the total OPEB liability. The discount rate is
based on the index rate for 20-year, tax-exempt general obligation municipal bonds with an average
rating of AA/Aa or higher.
Mortality rates were based on the RP-2014 Healthy Annuitant Mortality Table for Males or Females, as
appropriate, with adjustments for mortality improvements based on Scale AA.
The actuarial assumptions used in the December 31, 2019 valuation were based on the results of an
actuarial experience study for the period January 1, 2019—December 31, 2019.
NOTE 11. MAJOR CUSTOMERS
The Electric Division derived approximately 47.97% of utility revenue from the top five major customers.
The Natural Gas Division derived approximately 40.32% of its utility revenue from the top five major
customers.
NOTE 12. RECLASSIFICATIONS
Certain immaterial prior year financial statement amounts have been reclassified to conform to the current
year's presentation. There was no affect on total net position.
NOTE 13. COMMITMENTS
A. PURCHASED POWER
The Commission is committed to purchase 25 MW of its power requirements from Missouri River
Energy Services pursuant to the Power Sale Agreement dated April 28, 2010. This contract is effective
through January 1, 2046.
B. PAYMENT IN LIEU OF TAXES
The Commission is committed to contribute a portion of its total operating revenue to the City of
Hutchinson in lieu of the payment of taxes pursuant to the Resolution No. 14853 dated February 10,
2018.
35
HUTCHINSON UTILITIES COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2020
NOTE 13. COMMITMENTS (Cont'd)
C. CONSTRUCTION PROJECTS
The Commission has the following active construction projects:
Vendor Project
Virginia Transformer Corp. 25/46.7 MVA LTC Transformer
Virginia Transformer Corp. 4.025 MVA ZIG ZAG
Grounding Transformer
NOTE 14. DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES
Contract Remaining
Amount Commitment
$ 724,965 $ 724,965
244,925 244,925
The following is a summary of the major components of deferred outflows and inflows as presented in the
Statement of Net Position:
Related to Pensions
Related to OPEB
Total
NOTE 15. COVID-19
Deferred Deferred
Outflows of Inflows of
Resources Resources
$ 413,037 $ 164,556
4,519
$ 417,556 $ 164,556
In December 2019, a novel strain of coronavirus was reported in Wuhan, China. The World Health
Organization has declared the outbreak to constitute a "Public Health Emergency of International Concern."
The COVID-19 outbreak is disrupting supply chains and affecting production and sales across a range of
industries. The extent of the impact of COVID-19 on our operational and financial performance will depend
on certain developments, including the duration and spread of the outbreak, impact on our customers,
employees and vendors all of which are uncertain and cannot be predicted. At this point, the extent to which
COVID-19 may impact our financial condition or results of operations is uncertain.
NOTE 16. SUBSEQUENT EVENT
In March 2021, the Commission decided to use the $1.2 million in reserves and $400,000 in the rate
stabilization funds to help pay the $4.2 million February 2021 natural gas bill with the remaining portion being
passed onto the customers.
36
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REQUIRED SUPPLEMENTARY INFORMATION
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HUTCHINSON UTILITIES COMMISSION
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
DECEMBER 31, 2020
Employer's
Proportionate
Share of the
Net Pension
State's
Liability
Employer's
Proportionate
and the State's
Proportionate
Employer's
Employer's
Share
Proportionate
Share of the
Proportionate
Proportionate
(Amount) of the
Share of the
Net Pension
Plan Fiduciary
Share
Share
Net Pension
Net Pension
Liability (Asset) as
Net Position
(Percentage)
(Amount) of the
Liability
Liability
Employer's
a Percentage of
as a Percentage
Fiscal of the Net
Net Pension
Associated with
Associated with
Covered
its Covered
of the Total
Year Pension
Liability (Asset)
the Employer
the Employer
Payroll
Payroll
Pension
Ending Liability (Asset)
(a)
(b)
(a+b)
(c)
((a+b)/c)
Liability
Pensions
GERP
June 30, 2020
0.0673% $
4,034,943 $
124,288 $
4,159,231
$ 4,848,886
85.78%
79.06%
June 30, 2019
0.0648%
3,582,647
111,328
3,693,975
4,605,472
80.21%
80.23%
June 30, 2018
0.0649%
3,600,387
118,224
3,718,611
4,376,690
84.96%
79.53%
June 30, 2017
0.0644%
4,111,253
51,661
4,162,914
4,146,010
100.41%
75.90%
June 30, 2016
0.0694%
5,634,936
73,588
5,708,524
4,334,384
131.70%
68.90%
June 30, 2015
0.0714%
3,700,319
3,700,319
4,241,304
87.24%
78.20%
The Commission implemented GASB Statement No. 68 for fiscal year ended December 31, 2015. Information for prior years is not available.
See Accompanying Notes to the Required Supplementary Information
37
HUTCHINSON UTILITIES COMMISSION
SCHEDULE OF EMPLOYER CONTRIBUTIONS
DECEMBER 31, 2020
Contributions
in Relation
Contributions
Statutorily
to the Statutorily
Contribution
as a Percentage
Required
Required
Deficiency
Covered
of Covered
Fiscal Year
Contribution
Contribution
(Excess)
Payroll
Payroll
Ending
(a)
(b)
(a-b)
(d)
(b/d)
Pensions
GERP
12/31/2020
$ 367,734
$ 367,734
$
$ 4,903,120
7.50%
12/31 /2019
351,656
351,656
4,688,747
7.50%
12/31/2018
337,735
337,735
4,503,133
7.50%
12/31/2017
314,977
314,977
4,201,039
7.50%
12/31/2016
310,915
310,915
4,145,538
7.50%
12/31/2015
327,065
327,065
4,360,868
7.50%
The Commission implemented GASB Statement No. 68 for fiscal year ended December 31, 2015. Information for prior
years is not available.
See Accompanying Notes to the Required Supplementary Information
38
HUTCHINSON UTILITIES COMMISSION
SCHEDULE OF CHANGES IN THE COMMISSION'S TOTAL OPEB LIABILITY
DECEMBER 31, 2020
Service Cost
Interest
Differences Between
Expected and Actual Experience
Changes in Assumptions
Benefit Payments
Net Change in Total OPEB Liability
Total OPEB Liability - Beginning of Year
Total OPEB Liability - End of Year
Covered Employee Payroll
Measurement Date
12/31 /2019 12/31 /2018 12/31 /2017
$ 5,994 $
6,199 $
5,475
3,982
3,391
3,379
(10,484)
11,924
(3,843)
4,199
(1,347)
10,069
5,747
13,053
102,003
96,256
83,203
$ 112,072 $
102,003 $
96,256
$ 4,733,716 $
4,488,568 $
4,206,868
i otai urtb Uaouity as a "/o
of Covered Employee Payroll 2.37% 2.27% 2.29%
The Commission implemented GASB Statement No. 75 for fiscal year ended December 31, 2018. Information for
prior years is not available.
See Accompanying Notes to the Required Supplementary Information
39
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HUTCHINSON UTILITIES COMMISSION
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2020
NOTE 1. CHANGES IN PLAN PROVISIONS
A. GENERAL EMPLOYEE RETIREMENT PLAN
2020 Changes:
Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through
December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June
30, 2020.
2019 Chanaes
The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to
$21.0 million per year. The State's special funding contribution was changed prospectively, requiring $16.0
million due per year through 2031.
2018 Chanaes:
The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July
1, 2019, resulting in actuarial equivalence after June 30, 2024.
Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1,
2018.
Deferred augmentation was changed to 0.00 percent, effective January 1, 2019. Augmentation that has
already accrued for deferred members will still apply.
Contribution stabilizer provisions were repealed.
Postretirement benefit increases were changed from 1.00 percent per year with a provision to increase to
2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the Social Security Cost of
Living Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019.
For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches
normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients, or survivors.
Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2017 Changes:
The State's contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and
2018, and $6,000,000 thereafter.
The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from
$21,000,000 to $31,000,000 in calendar years 2019 to 2031. The state's contribution changed from
$16,000,000 to $6,000,000 in calendar years 2019 to 2031.
2016 Changes:
There have been no changes since the prior valuation.
40
HUTCHINSON UTILITIES COMMISSION
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2020
NOTE 1. CHANGES IN PLAN PROVISIONS (Cont'd)
A. GENERAL EMPLOYEE RETIREMENT PLAN (GERP) (Cont'd)
2015 Changes:
On January 1, 2015 the Minneapolis Employees Retirement Fund was merged into the General Employees
Fund, which increased the total pension liability by $1.1 billion and increased the fiduciary plan net position
by $892 million. Upon consolidation, state and employer contributions were revised; the State's contribution
of $6.0 million, which meets the special funding situation definition, was due September 2015.
B. OTHER POST -EMPLOYMENT BENEFITS (OPEB) PLAN NOT ADMINISTERED IN A TRUST
2020 Changes:
Retiree premiums were update to current levels.
2019 Changes:
No changes.
2018 Changes:
No changes.
NOTE 2. CHANGES IN ACTUARIAL ASSUMPTIONS
A. GENERAL EMPLOYEE RETIREMENT PLAN (GERP)
2020 Changes:
The price inflation assumption was decreased from 2.50% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.00%.
Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study.
The net effect is assumed rates that average 0.25% less than previous rates.
Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The
changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements.
Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The
new rates are based on service and are generally lower than the previous rates for years 2-5 and slightly
higher thereafter.
Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The
change results in fewer predicted disability retirements for males and females.
41
HUTCHINSON UTILITIES COMMISSION
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2020
NOTE 2. CHANGES IN ACTUARIAL ASSUMPTIONS (Cont'd)
A. GENERAL EMPLOYEE RETIREMENT PLAN (GERP) (Cont'd)
2020 Changes: (Cont'd)
The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the
Pub-2010 General Mortality table, with adjustments. The base mortality table for disabled annuitants was
changed from the RP-2014 disabled annuitant mortality table to the PUB-2010 General/Teacher disabled
annuitant mortality table, with adjustments.
The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
The assumed spouse age difference was changed from two years older for females to one year older.
The assumed number of married male new retirees electing the 100% Joint & Survivor option changed
from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint & Survivor
option changed from 15% to 30%. The corresponding number of married new retirees electing the Life
annuity option was adjusted accordingly.
2019 Changes:
The mortality projection scale was changed from MP-2017 to MP-2018.
2018 Changes:
The mortality projection was changed from MP-2015 to MP-2017.
The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50 percent per
year thereafter to 1.25 percent per year.
2017 Changes:
The combined service annuity (CSA) loads were changed from 0.8 percent for active members and 60
percent for vested and non -vested deferred members. The revised CSA loads are now 0.0 percent for
active member liability, 15.0 percent for vested deferred member liability and 3.0 percent for non -vested
deferred member liability.
The assumed post -retirement benefit increase rate was changed from 1.0 percent per year for all years to
1.0 percent per year through 2044 and 2.5 percent per year thereafter.
2016 Changes:
The assumed post -retirement benefit increase rate was changed for 1.0 percent per year through 2035 and
2.5 percent per year thereafter to 1.0 percent per year for all years.
The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate
was changed from 7.9 percent to 7.5 percent.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed
future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent for
payroll growth and 2.50 percent for inflation.
42
HUTCHINSON UTILITIES COMMISSION
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2020
NOTE 2. CHANGES IN ACTUARIAL ASSUMPTIONS (Cont'd)
A. GENERAL EMPLOYEE RETIREMENT PLAN (GERP) (Cont'd)
2015 Changes:
The assumed post -retirement benefit increase rate was changed from 1.0 percent per year through 2030
and 2.5 percent per year thereafter to 1.0 percent per year through 2035 and 2.5 percent per year
thereafter.
B. OTHER POST -EMPLOYMENT BENEFITS (OPEB) PLAN NOT ADMINISTERED IN A TRUST
2020 Changes:
The discount rate was changed from 3.71 % to 2.75% based on the updated 20-year municipal bond rates.
Healthcare trend rates were reset to reflect updated cost increase expectations.
Medical per capita claims costs were update to reflect recent experience.
Mortality and salary increase rates were update from the rates used in the 7/1/2017 PERA General
Employees Plan valuation to the rates used in the 7/1/2019 valuation.
The inflation assumption was changed from 2.75% to 2.50% based on an updated historical analysis of
inflation rates and forward -looking market expectations.
2019 Changes:
The index rate for 20 year, tax-exempt municipal bonds used in the determination of the discount rate was
changed from 3.31 % to 3.71 %.
Healthcare trend rates were reset to reflect updated cost increase expectations, including an adjustment to
reflect the impact of the Affordable Care Act's Excise Tax on high -cost health insurance plans.
2018 Changes:
No changes.
43
SUPPLEMENTARY INFORMATION
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HUTCHINSON UTILITIES COMMISSION
COMBINING STATEMENT OF NET POSITION
DECEMBER 31, 2020
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Assets
Current Assets
Cash and Investments
Receivables
Accounts Receivable (Net of Allowance for Doubtful Accounts of
$44,325 and $36,266, Respectively)
Interest Receivable
Sales Tax Receivable
Inventory
Prepaid Items
Total Current Assets
Noncurrent Assets
Restricted Assets
Cash and Investments
Capital Assets
Assets Not Being Depreciated
Other Capital Assets, Net of Depreciation
Net Capital Assets
Total Noncurrent Assets
Total Assets
Deferred Outflows of Resources
Total Assets and Deferred Outflows of Resources
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION
Liabilities
Current Liabilities
Accounts Payable
Customer Deposits
Accrued Expenses
Interest
Salaries Payable
Total Current Liabilities
Long -Term Liabilities
Net Pension Liability
Total OPEB Liability
Other Long -Term Liabilities Due Within One Year
Other Long -Term Liabilities Due in More Than One Year
Total Long -Term Liabilities
Total Liabilities
Deferred Inflows of Resources
Net Position
Net Investment in Capital Assets
Unrestricted
Total Net Position
Total Liabilities, Deferred Inflows of Resources and Net Position
Natural
Electric Gas
Division Division Total
12,914,748 $ 12,663,419 $ 25,578,167
2,054,858
1,416,703
3,471,561
48,993
48,993
97,986
124,247
124,247
1,501,673
459,710
1,961,383
28,528
1,060
29,588
16,673,047
14,589,885
31,262,932
1,320,907
2,359,332
3,680,239
1,029,194
3,965,045
4,994,239
47,475,041
24,264,783
71,739,824
48,504,235
28,229,828
76,734,063
49,825,142
30,589,160
80,414,302
66,498,189
45,179,045
111,677,234
313,166 104,390 417,556
$ 66,811,355 $ 45,283,435 $ 112,094,790
$ 1,482,860 $
811,583 $
2,294,443
276,292
148,773
425,065
42,321
40,221
82,542
222,693
73,991
296,684
2,024,166
1,074,568
3,098,734
3,026,207
1,008,736
4,034,943
84,054
28,018
112,072
729,759
1,758,550
2,488,309
15,759,614
10,605,490
26,365,104
19,599,634
13,400,794
33,000,428
21,623,800
14,475,362
36,099,162
123,417
41,139
164,556
33,854,162 18,415,978 52,270,140
11,209,976 12,350,956 23,560,932
45,064,138 30,766,934 75,831,072
$ 66,811,355 $ 45,283,435 $ 112,094,790
44
HUTCHINSON UTILITIES COMMISSION
COMBINING SCHEDULE OF REVENUES AND EXPENSES
YEAR ENDED DECEMBER 31, 2020
OPERATING REVENUES
Electric Energy Sales
Natural Gas Sales
Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES
Production
Operations
Maintenance
Purchased Power/Gas
Other Power Supply
Transmission
Operations
Maintenance
Distribution
Operations
Maintenance
Customer Accounts Expense
Sales Expense
Administrative and General
Depreciation
Contribution to City of Hutchinson
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
Interest Income
Merchandise and Contract Work, Net
Miscellaneous Income
Gain (Loss) on Disposal of Assets
Bond Premium
Interest Expense
Total Nonoperating Revenues (Expenses)
Change in Net Position
NET POSITION, BEGINNING OF YEAR
Electric Natural Gas
Division Division Total
$ 26,418,356 $ $ 26,418,356
9,800,541 9,800,541
42,260 1,719,680 1,761,940
26,460,616 11,520,221 37,980,837
2,924,639
2,924,639
558,907
558,907
12,835,939
5,588,511
18,424,450
340,060
340,060
2,324,774
225,189
2,549,963
9,767
11,234
21,001
1,086,352
734,392
1,820,744
399,504
213,699
613,203
252,606
189,536
442,142
237,281
103,653
340,934
1,448,918
829,211
2,278,129
2,804,539
1,088,555
3,893,094
1,293,543
573,649
1,867,192
26,516,829
9,557,629
36,074,458
(56,213)
1,962,592
1,906,379
368,962
368,962
737,924
79,987
97,645
177,632
1,667,727
19,073
1,686,800
31,158
23,458
54,616
33,457
185,609
219,066
(536,416)
(538,863)
(1,075,279)
1,644,875
155,884
1,800,759
1,588,662
2,118,476
3,707,138
43,475,476
28,648,458
72,123,934
NET POSITION, END OF YEAR $ 45,064,138 $ 30,766,934 $ 75,831,072
45
HUTCHINSON UTILITIES COMMISSION
SCHEDULE OF DIVISIONS CASH FLOWS
YEAR ENDED DECEMBER 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers
Payments Received from Other Sources
Payments to Suppliers
Payments to Employees
Net Cash Provided (Used) by Operating Activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Other Noncapital Income (Expense)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Additions to Utility Plant
Proceeds from Sale of Assets
Principal Payments on Long -Term Debt
Interest Paid on Long -Term Debt
Net Cash Provided (Used) by Capital
and Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Income
Net Increase (Decrease) in Cash and Cash Equivalents
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
RECONCILIATION OF CASH AND CASH EQUIVALENTS
Current Assets - Cash and Investments
Restricted Assets - Cash and Investments
Total Cash and Cash Equivalents
See Accompanying Notes to the Financial Statements
46
Electric Natural Gas
Division Division Total
$ 26,291,656 $ 9,913,932 $ 36,205,588
6,604
1,719,680
1,726,284
(19,815,857)
(7,809,435)
(27,625,292)
(4,092,863)
(673,272)
(4,766,135)
2,389,540
3,150,905
5,540,445
1,747,714
116,718
1,864,432
(1,254,861) (484,607) (1,739,468)
34,736 23,458 58,194
(645,000) (1,455,000) (2,100,000)
(538,566) (543,713) (1,082,279)
(2,403,691) (2,459,862) (4,863,553)
377,951 377,951 755,902
2,111,514 1,185,712 3,297,226
12,124,141 13,837,039 25,961,180
$ 14,235,655 $ 15,022,751 $ 29,258,406
$ 12,914,748 $ 12,663,419 $ 25,578,167
1,320,907 2,359,332 3,680,239
$ 14,235,655 $ 15,022,751 $ 29,258,406
HUTCHINSON UTILITIES COMMISSION
SCHEDULE OF DIVISIONS CASH FLOWS
YEAR ENDED DECEMBER 31, 2020
RECONCILIATION OF OPERATING INCOME (LOSS) TO CASH
FLOWS FROM OPERATING ACTIVITIES
Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to Net Cash
Provided (Used) by Operating Activities
Depreciation
Pension Related Adjustments
OPEB Related Adjustments
(Increase) Decrease in Assets
Accounts Receivable
Sales Tax Receivable
Inventory
Prepaid Items
Increase (Decrease) in Liabilities
Accounts Payable
Customer Deposits
Salaries Payable
Compensated Absences
Net Cash Provided (Used) by Operating Activities
Electric Natural Gas
Division Division Total
$ (56,213) $ 1,962,592 $ 1,906,379
2,804,539
1,088,555
3,893,094
(179,671)
(59,892)
(239,563)
5,173
1,724
6,897
(113,969)
120,246
6,277
(35,656)
(35,656)
(77,693)
(8,074)
(85,767)
7,409
40,868
48,277
(59,339)
(20,239)
(79,578)
(12,731)
(6,855)
(19,586)
50,792
21,064
71,856
56,899
10,916
67,815
$ 2,389,540 $ 3,150,905 $ 5,540,445
47
HUTCHINSON UTILITIES COMMISSION
STATEMENT OF NET POSITION
ELECTRIC DIVISION
DECEMBER 31, 2020
WITH PARTIAL COMPARATIVE AMOUNTS AS OF DECEMBER 31, 2019
2020
2019
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Assets
Current Assets
Cash and Investments
$ 12,914,748 $
10,903,584
Receivables
Accounts Receivable (Net of Allowance for Doubtful Accounts of
$44,325 and $43,120, Respectively)
2,054,858
1,940,889
Interest Receivable
48,993
57,982
Sales Tax Receivable
124,247
88,591
Inventory
1,501,673
1,423,980
Prepaid Items
28,528
35,937
Total Current Assets
16,673,047
14,450,963
Noncurrent Assets
Restricted Assets
Cash and Investments
1,320,907
1,220,557
Capital Assets
Assets Not Being Depreciated
1,029,194
16,416,636
Other Capital Assets, Net of Depreciation
47,475,041
33,640,855
Net Capital Assets
48,504,235
50,057,491
Total Noncurrent Assets
49,825,142
51,278,048
Total Assets
66,498,189
65,729,011
Deferred Outflows of Resources
313,166
219,249
Total Assets and Deferred Outflows of Resources
$ 66,811,355 $
65,948,260
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION
Liabilities
Current Liabilities
Accounts Payable
$ 1,482,860 $
1,542,199
Customer Deposits
276,292
289,023
Accrued Expenses
Interest
42,321
44,471
Salaries Payable
222,693
171,901
Total Current Liabilities
2,024,166
2,047,594
Long -Term Liabilities
Net Pension Liability 3,026,207 2,686,985
Total OPEB Liability 84,054 76,502
Other Long -Term Liabilities Due Within One Year 729,759 697,464
Other Long -Term Liabilities Due in More Than One Year 15,759,614 16,413,467
Total Long -Term Liabilities 19,599,634 19,874,418
Total Liabilities 21,623,800 21,922,012
Deferred Inflows of Resources 123,417 550,772
Net Position
Net Investment in Capital Assets 33,854,162 34,628,611
Unrestricted 11,209,976 8,846,865
Total Net Position 45,064,138 43,475,476
Total Liabilities, Deferred Inflows of Resources and Net Position $ 66,811,355 $ 65,948,260
48
HUTCHINSON UTILITIES COMMISSION
DETAILED SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
BUDGET AND ACTUAL - ELECTRIC DIVISION
YEAR ENDED DECEMBER 31, 2020
WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2019
OPERATING REVENUES
Utility Revenues
Residential
General Service
Industrial
Street Lighting
Resale
Total Utility Revenues
Other Operating Revenues
Penalties/Fees
Security Lights
Total Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES
Production
Operations
Supervision and Engineering
Other Employee Benefits
Fuels
Station
Gas for Generation
Transportation
Waste Disposal
Total Operations
Maintenance
Structures
Generating Units
Other Equipment
Total Maintenance
Total Production
Power Costs
Purchased Power
2020 2019
Over (Under)
Budget Actual Budget Actual
$ 5,666,391
$ 5,692,685
$ 26,294
$ 5,638,725
9,648,905
8,911,119
(737,786)
9,566,730
10,170,440
8,963,654
(1,206,786)
9,667,324
141,712
141,886
174
147,456
3,007,250
2,709,012
(298,238)
2,773,852
28,634,698
26,418,356
(2,216,342)
27,794,087
169,500
31,443
(138,057)
177,600
10,000
10,817
817
10,905
179,500
42,260
(137,240)
188,505
28,814,198
26,460,616
(2,353,582)
27,982,592
1,156,747
1,137,796
(18,951)
1,081,353
631,437
553,438
(77,999)
710,265
78,776
72,042
(6,734)
44,104
136,500
137,920
1,420
157,882
620,699
336,158
(284,541)
496,576
665,283
665,283
659,783
26,000
22,002
(3,998)
20,045
3,315,442
2,924,639
(390,803)
3,170,008
10,000
18,208
8,208
4,371
551,351
339,139
(212,212)
467,395
40,000
201,560
161,560
134,471
601,351
558,907
(42,444)
606,237
3,916,793
3,483,546
(433,247)
3,776,245
13,480,332
12,835,939
(644,393)
13,776,294
49
HUTCHINSON UTILITIES COMMISSION
DETAILED SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
BUDGET AND ACTUAL - ELECTRIC DIVISION
YEAR ENDED DECEMBER 31, 2020
WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2019
OPERATING EXPENSES (Cont'd)
Other Power Supply
Supervision and General Salaries
Training
Professional Services
Total Other Power Supply
Transmission
Operations
Transmission
Station
Total Operations
Maintenance
Plant and Equipment
Total Transmission
Distribution
Operations
Supervision and Engineering
Other Employee Benefits
Line
Meter
Territory Service Agreement
Other
Total Operations
Maintenance
Station Equipment
Underground Lines
Lines Transformers
Street Lighting
Other Equipment
Total Maintenance
Total Distribution
Customer Accounts Expense
Meter Reading
Collection
Other Employee Benefits
Uncollectible Accounts
Customer Services
Meetings and Training
Total Customer Accounts Expense
2020
gniq
Over (Under)
Budget
Actual
Budget
Actual
$ 204,717
$ 303,460
$ 98,743
$ 217,651
1,000
(1,000)
36,600
36,600
43,907
242,317
340,060
97,743
261,558
2,680,000 2,136,904 (543,096) 2,856,868
165,000 187,870 22,870 184,831
2,845,000 2,324,774 (520,226) 3,041,699
69,688 9,767 (59,921) 23,042
2,914,688 2,334,541 (580,147) 3,064,741
737,481
426,167
(311,314)
333,797
420,131
392,723
(27,408)
412,921
78,239
127,873
49,634
118,998
53,333
22,307
(31,026)
24,148
992
58,000
117,282
59,282
143,974
1,347,184
1,086,352
(260,832)
1,034,830
26,136
16,175
(9,961)
19,310
236,431
218,812
(17,619)
173,029
21,304
14,748
(6,556)
25,538
79,841
104,880
25,039
55,463
51,139
44,889
(6,250)
60,018
414,851
399,504
(15,347)
333,358
1,762,035
1,485,856
(276,179)
1,368,188
25,267
4,553
(20,714)
10,311
168,257
150,840
(17,417)
137,241
11,870
11,870
16,377
5,500
23,567
18,067
17,513
66,460
61,088
(5,372)
59,168
1,925
688
(1,237)
165
267,409
252,606
(14,803)
240,775
50
HUTCHINSON UTILITIES COMMISSION
DETAILED SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
BUDGET AND ACTUAL - ELECTRIC DIVISION
YEAR ENDED DECEMBER 31, 2020
WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2019
OPERATING EXPENSES (Cont'd)
Sales Expense
Salaries
Conservation
Total Sales Expense
Administrative and General
Supervision and General Salaries
Office Supplies
Outside Services Employed
Property Insurance
Medical Insurance
Other Employee Benefits
Regulatory
Commissioners Salaries
Travel
Miscellaneous
Maintenance of General Plant
Total Administrative and General
Depreciation
Contribution to City of Hutchinson
2020 2019
Over (Under)
Budget Actual Budget Actual
$ 71,698
$ 40,848 $
(30,850)
$ 42,434
262,250
196,433
(65,817)
139,070
333,948
237,281
(96,667)
181,504
486,404
494,674
8,270
467,610
281,545
251,846
(29,699)
319,123
99,306
98,403
(903)
95,057
193,177
194,883
1,706
140,369
195,431
131,252
(64,179)
104,133
11,000
97,831
86,831
116,426
20,000
8,459
(11,541)
6,717
15,836
15,953
117
15,894
7,000
2,416
(4,584)
4,463
77,000
58,447
(18,553)
57,813
74,975
94,754
19,779
88,819
1,461,674
1,448,918
(12,756)
1,416,424
2,900,000
2,804,539
(95,461)
2,728,998
Payment in Lieu of Taxes
1,293,543
1,293,543
1,106,279
Roadway Lighting
73,692
Total Contribution to City of Hutchinson
1,293,543
1,293,543
0
1,179,971
Total Operating Expenses
28,572,739
26,516,829
(2,055,910)
27,994,698
Operating Income (Loss)
241,459
(56,213)
(297,672)
(12,106)
NONOPERATING REVENUES (EXPENSES)
Interest Income
175,000
368,962
193,962
308,608
Merchandise and Contract Work, Net
(1,000)
79,987
80,987
(85,498)
Miscellaneous Income
1,667,727
1,667,727
68,189
Gain (Loss) on Disposal of Assets
31,158
31,158
Bond Premium
33,456
33,457
1
33,457
Interest Expense
(534,657)
(536,416)
(1,759)
(564,254)
Total Nonoperating Revenues (Expenses)
(327,201)
1,644,875
1,972,076
(239,498)
Change in Net Position
$ (85,742)
1,588,662
$ 1,674,404
(251,604)
NET POSITION, BEGINNING OF YEAR
NET POSITION, END OF YEAR
43,475,476 43,727,080
$ 45,064,138 $ 43,475,476
51
HUTCHINSON UTILITIES COMMISSION
STATEMENT OF NET POSITION
NATURAL GAS DIVISION
DECEMBER 31, 2020
WITH PARTIAL COMPARATIVE AMOUNTS AS OF DECEMBER 31, 2019
2020
2019
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Assets
Current Assets
Cash and Investments
$ 12,663,419 $
11,482,024
Receivables
Accounts Receivable (Net of Allowance for Doubtful Accounts of
$36,266 and $36,731, Respectively)
1,416,703
1,536,949
Interest Receivable
48,993
57,982
Inventory
459,710
451,636
Prepaid Items
1,060
41,928
Total Current Assets
14,589,885
13,570,519
Noncurrent Assets
Restricted Assets
Cash and Investments
2,359,332
2,355,015
Capital Assets
Assets Not Being Depreciated
3,965,045
3,997,090
Other Capital Assets, Net of Depreciation
24,264,783
24,836,686
Net Capital Assets
28,229,828
28,833,776
Total Noncurrent Assets
30,589,160
31,188,791
Total Assets
45,179, 045
44, 759, 310
Deferred Outflows of Resources
104,390
73,083
Total Assets and Deferred Outflows of Resources
$ 45,283,435 $
44,832,393
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION
Liabilities
Current Liabilities
Accounts Payable
$ 811,583 $
831,822
Customer Deposits
148,773
155,628
Accrued Expenses
Interest
40,221
45,071
Salaries Payable
73,991
52,927
Total Current Liabilities
1,074,568
1,085,448
Long -Term Liabilities
Net Pension Liability
1,008,736
895,662
Total OPEB Liability
28,018
25,501
Other Long -Term Liabilities Due Within One Year
1,758,550
1,647,918
Other Long -Term Liabilities Due in More Than One Year
10,605,490
12,345,815
Total Long -Term Liabilities
13,400,794
14,914,896
Total Liabilities
14,475,362
16,000,344
Deferred Inflows of Resources
41,139
183,591
Net Position
Net Investment in Capital Assets
18,415,978
17,375,000
Unrestricted
12, 350, 956
11,273,458
Total Net Position
30,766,934
28,648,458
Total Liabilities, Deferred Inflows of Resources and Net Position
$ 45,283,435 $
44,832,393
52
HUTCHINSON UTILITIES COMMISSION
DETAILED SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
BUDGET AND ACTUAL - NATURAL GAS DIVISION
YEAR ENDED DECEMBER 31, 2020
WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2019
2020
2019
Over (Under)
Budget
Actual
Budget
Actual
OPERATING REVENUES
Utility Revenues
Residential
$ 3,870,540
$ 3,663,453
$ (207,087)
$ 3,981,709
Commercial
2,912,293
2,597,225
(315,068)
2,974,834
Industrial
3,408,835
3,539,863
131,028
3,679,891
Total Utility Revenues
10,191,668
9,800,541
(391,127)
10,636,434
Other Operating Revenues
Gas Transportation Contract - New Ulm
898,640
1,042,274
143,634
1,040,698
Transportation - Electric Division
665,283
665,283
659,783
Penalties/Fees
68,100
12,123
(55,977)
72,601
Total Other Operating Revenues
1,632,023
1,719,680
87,657
1,773,082
Total Operating Revenues
11,823,691
11,520,221
(303,470)
12,409,516
OPERATING EXPENSES
Purchased Natural Gas
5,772,145
5,588,511
(183,634)
5,961,040
Transmission
Operations
Supervision and Engineering
137,417
129,661
(7,756)
120,782
Other
120,000
95,528
(24,472)
55,784
Total Operations
257,417
225,189
(32,228)
176,566
Maintenance
Supervision and Engineering
1,250
1,787
537
670
Other
4,000
9,447
5,447
6,075
Total Maintenance
5,250
11,234
5,984
6,745
Total Transmission
262,667
236,423
(26,244)
183,311
Distribution
Operations
Supervision and Engineering
286,412
158,338
(128,074)
195,396
Other Employee Benefits
373,629
338,005
(35,624)
398,409
Mains and Services
205,000
188,590
(16,410)
113,284
Meters
29,137
9,854
(19,283)
13,599
Other
59,450
39,605
(19,845)
40,023
Total Operations
953,628
734,392
(219,236)
760,711
Maintenance
Mains and Services
194,516
148,323
(46,193)
171,156
Meters
25,944
12,377
(13,567)
478
Other Equipment
159,810
52,999
(106,811)
47,568
Total Maintenance
380,270
213,699
(166,571)
219,202
Total Distribution
1,333,898
948,091
(385,807)
979,913
53
HUTCHINSON UTILITIES COMMISSION
DETAILED SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
BUDGET AND ACTUAL - NATURAL GAS DIVISION
YEAR ENDED DECEMBER 31, 2020
WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2019
OPERATING EXPENSES (Cont'd)
Customer Accounts Expense
Meter Reading
Collection
Other Employee Benefits
Uncollectible Accounts
Customer Services
Meetings and Training
Total Customer Accounts Expense
Sales Expense
Salaries
Conservation
Total Sales Expense
Administrative and General
Supervision and General Salaries
Office Supplies
Outside Services Employed
Property Insurance
Medical Insurance
Other Employee Benefits
Regulatory
Commissioners Salaries
Travel
Miscellaneous
Maintenance of General Plant
Total Administrative and General
Depreciation
Contribution to City of Hutchinson
Payment in Lieu of Taxes
Total Operating Expenses
Operating Income (Loss)
2020
2019
Over (Under)
Budget
Actual
Budget
Actual
$ 20,672
$ 3,656
$ (17,016)
$ 5,882
148,119
122,877
(25,242)
110,861
10,283
10,283
13,881
4,500
2,175
(2,325)
5,690
39,376
49,982
10,606
48,411
1,575
563
(1,012)
135
214,242
189,536
(24,706)
184,860
23,899
40,847
16,948
42,433
128,385
62,806
(65,579)
80,783
152,284
103,653
(48,631)
123,216
340,266
395,464
55,198
395,486
90,310
98,182
7,872
147,945
36,769
41,080
4,311
37,783
49,399
50,491
1,092
46,070
148,447
52,345
(96,102)
42,029
3,750
60,419
56,669
45,003
40,000
37,077
(2,923)
35,996
10,558
10,636
78
10,597
6,000
2,209
(3,791)
3,305
48,000
34,572
(13,428)
46,594
54,800
46,736
(8,064)
31,425
828,299
829,211
912
842,233
1,025,000
1,088,555
63,555
1,078,481
573,649
573,649
495,145
10,162,184
9,557,629
(604,555)
9,848,199
1,661,507
1,962,592
301,085
2,561,317
54
HUTCHINSON UTILITIES COMMISSION
DETAILED SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
BUDGET AND ACTUAL - NATURAL GAS DIVISION
YEAR ENDED DECEMBER 31, 2020
WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2019
NONOPERATING REVENUES (EXPENSES)
Interest Income
Merchandise and Contract Work, Net
Miscellaneous Income
Gain (Loss) on Disposal of Assets
Bond Premium
Interest Expense
Total Nonoperating
Revenues (Expenses)
Change in Net Position
NET POSITION, BEGINNING OF YEAR
NET POSITION, END OF YEAR
2020
2019
Over (Under)
Budget Actual Budget Actual
$ 175,000
$ 368,962 $
193,962
$ 308,851
2,500
97,645
95,145
21,655
19,073
19,073
70,145
23,458
23,458
185,608
185,609
1
185,608
(541,450)
(538,863)
2,587
(608,729)
(178,342)
155,884
334,226
(22,470)
$ 1,483,165
2,118,476 $
635,311
2,538,847
28,648,458
$ 30,766,934
26,109,611
$ 28,648,458
55
COMPLIANCE SECTION
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INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE
Members of the Hutchinson Utilities Commission
Hutchinson, Minnesota
We have audited, in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General
of the United States, the financial statements of Hutchinson Utilities Commission, a fund of the City of Hutchinson,
Minnesota, as of and for the year ended December 31, 2020, and the related notes to the financial statements, which
collectively comprise the Commission's basic financial statements, and have issued our report thereon dated March 31,
2021.
In connection with our audit, nothing came to our attention that caused us to believe that the Commission failed to comply
with the provisions of the contracting and bidding, deposits and investments, conflicts of interest, public indebtedness,
claims and disbursements, and miscellaneous provisions sections of the Minnesota Legal Compliance Audit Guide for
Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting matters.
However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we
performed additional procedures, other matters may have come to our attention regarding the Commission's
noncompliance with the above referenced provisions, insofar as they relate to account matters.
The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and
not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose.
(inual, Duzy% 4 cc�irrt&/1, 7—�ILp
CONWAY, DEUTH & SCHMIESING, PLLP
CPAS & ADVISORS
LITCHFIELD, MINNESOTA
March 31, 2021
56
ZMEMEMMEM
>rtetl Office
Ste 110
2351 Connecticut Ave
Sairtell, MN 56377
C320) 252-7565
=0) 862-1337
Mernbem American Institute of Certified Public Accountants, Minnesota Society of Certified Public Accountants
This page intentionally left blank
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Members of the Hutchinson Utilities Commission
Hutchinson, Minnesota
We have audited in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General
of the United States, the financial statements of Hutchinson Utilities Commission, a fund of the City of Hutchinson,
Minnesota, as of and for the year ended December 31, 2020, and the related notes to the financial statements, which
collectively comprise the Commission's basic financial statements, and have issued our report thereon dated March 31,
2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Commission's internal control over
financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the
purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the Commission's internal control. Accordingly, we do not express an opinion on the effectiveness of the
Commission's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements
on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there
is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or
detected and corrected on a timely basis. A significant deficiency is a deficiency, or combination of deficiencies, in internal
control that is less severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was
not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies.
Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
. r
a : A IN
.r
1
1 :,� 0
57
Morris Office
401 Atlantic Ave
Morris, MIN 56267
(320) 589-2602
MMIMM
Litchfietd Office
820 Siibley Ave N
Litchfield, MN 55355
(320) 693-7975
Sartett Office
Ste 110
2'351 Connecticut Ave
Sartell, MN 56377
(320) 2'52-7565
(800) 862-1337
Mernbers: American Institute of Certified Public Accountants, Minnesota Society of Certified Public Accountants
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Commission's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit,
and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or
other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result
of that testing, and not to provide an opinion on the effectiveness of the Commission's internal control or on compliance.
This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering
the Commission's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Cori, Z)c �iesl , 7,/
CONWAY, DEUTH & SCHMIESING, PLLP
CPAS & ADVISORS
LITCHFIELD, MINNESOTA
March 31, 2021
58
HUTCHINSON UTILITIES COMMISSION
Finding
Reference
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
DECEMBER 31, 2020
Year Finding If Not Corrected, Provide Planned
Finding Title Status Initially Occurred Corrective Action or Other Explanation
Financial Statement Findings:
None
Minnesota Legal Compliance Findings:
None
59
HUTCHINSON UTILITIES COMMISSION
COMBINED DIVISIONS
FINANCIAL REPORT FOR FEBRUARY, 2021
2021
2020
pi .
Combined Division
Customer Revenue
$
6,451,601
$ 3,171,767
$
3,279,835
Sales for Resale
$
256,531
$ 149,923
$
106,608
NU Transportation
$
83,480
$ 82,243
$
1,237
Electric Division Transfer
$
56,879
$ 55,440
$
1,439
Other Revenues
$
30,841
$ 40,682
$
(9,841)
Interest Income
$
49,130
$ 55,221
$
(6,091)
TOTAL REVENUES
$
6,928,463
$ 3,555,276
$
3,373,186
Salaries & Benefits
$
508,516
$ 496,448
$
12,068
Purchased Commodities
$
5,841,531
$ 1,813,025
$
4,028,506
Transmission
$
185,654
$ 126,374
$
59,279
Generator Fuel/Chem.
$
99,868
$ 9,535
$
90,333
Depreciation
$
367,035
$ 328,566
$
38,469
Transfers (Elect./City)
$
212,479
$ 211,040
$
1,439
Operating Expense
$
162,667
$ 136,691
$
25,976
Debt Interest
$
83,542
$ 89,542
$
(6,000)
TOTAL EXPENSES
$
7,461,292
$ 3,211,221
$
4,250,070
NET PROFIT/(LOSS)
$
(532,829)
$ 344,055
$
(876,884)
%Chng 1 2021 2020 Di %Chng I Full YrBud %of Bud
103.4%
$ 9,700,699
$ 6,651,840
$
3,048,859
45.8%
$ 35,545,920
27.3%
71.1%
$ 501,858
$ 301,544
$
200,314
66.4%
$ 3,360,000
14.9%
1.5%
$ 168,960
$ 165,422
$
3,539
2.1%
$ 998,904
16.9%
2.6%
$ 113,758
$ 110,881
$
2,878
2.6%
$ 682,550
16.7%
(24.2%)
$ 66,442
$ 176,099
$
(109,657)
(62.3%)
$ 355,204
18.7%
(11.0%)
$ 80,855
$ 112,262
$
(31,406)
(28.0%)
$ 383,456
21.1%
94.9%
$ 10,632,574
$ 7,518,047
$
3,114,527
41.4%
$ 41,326,034
25.7%
2.43%
$ 1,102,244
$ 1,108,912
$
(6,668)
(0.6%)
$ 7,076,247
15.6%
222.2%
$ 7,761,681
$ 3,813,181
$
3,948,500
103.5%
$ 18,426,340
42.1%
46.9%
$ 406,086
$ 264,351
$
141,735
53.6%
$ 3,200,000
12.7%
947.3%
$ 106,356
$ 16,132
$
90,223
559.3%
$ 699,492
15.2%
11.7%
$ 734,222
$ 655,706
$
78,516
12.0%
$ 4,100,000
17.9%
0.7%
$ 424,957
$ 422,079
$
2,878
0.7%
$ 2,549,742
16.7%
19.0%
$ 397,904
$ 392,411
$
5,493
1.4%
$ 2,941,142
13.5%
(6.7%)
$ 167,084
$ 179,084
$
(12,000)
6.7%
$ 990,507
16.9%
132.4%
$ 11,100,534
$ 6,851,856
$
4,248,677
62.0%
$ 39,983,470
27.8%
(254.9%)
$ (467,960)
$ 666,190
$
(1,134,150)
(170.2%)
$ 1,342,564
(34.9%)
February
February
YTD
YTD
2021
HUC
2021
2020
Change
2021
2020
Change
Budget
Target
Gross Margin %
6.0%
35.4%
-29.4%
14.9%
34.8%
-20.0%
35.3%
26%-28%
Operating Income Per Revenue $ (%)
-7.7%
10.3%
-18.0%
-4.3%
8.2%
-12.5%
4.3%
1%-4%
Net Income Per Revenue $ (%):
-7 7°%
9 7°%
-17.4%
-4.4%
8.9%
-13.3%
3.2%
0%-1%
Accounts past due by 30 days has increased during the time of no disconnects. Here is where we are at now compared to one year ago.
February 2020: $30,022
February 2021: $139,963
HUTCHINSON UTILITIES COMMISSION
ELECTRIC DIVISION
FINANCIAL REPORT FOR FEBRUARY, 2021
2021
2020
Di .
Electric Division
Customer Revenue
$
2,278,974
$
1,858,944
$ 420,030
Sales for Resale
$
256,531
$
149,923
$ 106,608
Other Revenues
$
12,561
$
36,290
$ (23,729)
Interest Income
$
25,664
$
29,005
$ (3,341)
TOTAL REVENUES $ 2,573,730 $ 2,074,162 $ 499,568
% Chna
2021
2020
Di .
22.6%
$ 4,163,661
$
3,889,324
$ 274,337
71.1%
$ 501,858
$
301,544
$ 200,314
(65.4%)
$ 29,892
$
147,732
$ (117,840)
(11.5%)
$ 43,145
$
58,919
$ (15,774)
24.1%1 $ 4,738,556 $ 4,397,519 $ 341,038
% Chna
16.67% of Year
Full Yr Bud
$ 25,441,420
Comp,
% of Bud
16.4%
7.1%
66.4%
$ 3,360,000
14.9%
(79.8%)
$ 99,799
30.0%
(26.8%)
$ 208,456
20.7%
7.8%1 $ 29,109,675 16.3%
Salaries & Benefits
$
374,788
$
371,941
$ 2,847
0.8%
$ 819,041
$ 825,144
$ (6,103)
(0.7%)
$
5,175,775
15.8%
Purchased Power
$
1,320,391
$
1,061,602
$ 258,789
24.4%
$ 2,407,083
$ 2,221,164
$ 185,919
8.4%
$ 12,888,000
18.7%
Transmission
$
185,654
$
126,374
$ 59,279
46.9%
$ 406,086
$ 264,351
$ 141,735
53.6%
$
3,200,000
12.7%
Generator Fuel/Chem.
$
99,868
$
9,535
$ 90,333
947.3%
$ 106,356
$ 16,132
$ 90,223
559.3%
$
699,492
15.2%
Depreciation
$
276,203
$
241,929
$ 34,274
14.2%
$ 552,558
$ 483,652
$ 68,906
14.2%
$
3,000,000
18.4%
Transfers (Elect./City)
$
164,674
$
163,236
$ 1,439
0.9%
$ 329,349
$ 326,471
$ 2,878
0.9%
$
1,976,093
16.7%
Operating Expense
$
103,653
$
65,403
$ 38,250
58.5%
$ 251,723
$ 248,376
$ 3,347
1.3%
$
1,900,106
13.2%
Debt Interest
$
43,321
$
44,471
$ (1,150)
(2.6%)
$ 86,643
$ 88,943
$ (2,300)
Lj.6%
$
507,857
17.1%
TOTAL EXPENSES
$
2,568,553
$
2,084,491
$ 484,061
23.2%
$ 4,958,837
$ 4,474,233
$ 484,605
10.8%
$
29,347,323
16.9%
NET PROFIT/(LOSS)
$
5,177
$
(10,330)
$ 15,507
(150.1%)
j $ (220,281)
$ (76,714)
$ (143,567)
187.1%
$
(237,648)
92.7%
2021
2020
Di .
%Chna
2021
2020
Di .
%Chna
Full YrBud
%of Bud
Electric Division
Residential
4,210,637
3,880,561
330,076
8.51%
8,628,784
8,224,586
404,198
4.91%
53,519,179
16.1%
All Electric
353,532
309,606
43,926
14.19%
686,806
662,128
24,678
3.73%
2,646,623
26.0%
Small General
1,503,358
1,553,203
(49,845)
(3.21%)
3,000,284
3,222,158
(221,874)
(6.89%)
19,052,314
15.7%
Large General
6,382,140
5,993,620
388,520
6.48%
12,781,370
12,194,160
587,210
4.82%
81,184,946
15.7%
Industrial
8,789,000
8,774,000
15,000
0.17%
17,598,000
18,505,000
(907,000)
(4.90%)
124,696,169
14.1%
Total KWH Sold
21,238,667
20,510,990
727,677
3.55%1
42,695,244
42,808,032
(112,788)
(0.26%)l
281,099,231
15.2%
February
February
YTD
YTD
2021 HUC
2021
2020
Change
2021
2020
Change
Budget Target
Gross Margin %
25.0%
27.7%
-2.6%
24.3%
26.6%
-2.3%
29.0%
Operating Income Per Revenue $ (%)
0.4%
-0.9%
1.3%
-4.4%
-3.9%
-0.5%
0.2% 0%-5%
Net Income Per Revenue $ (%):
0.2%
-0.5%
0.7%
-4.6%
-1.7%
-2.9%
-0.8% 0%-5%
Customer Revenue per KWH:
$0.1073
$0.0906
$0.0167
$0.0975
$0.0909
$0.0067
$0.0900
Total Power Supply Exp. per KWH:
$0.0895
$0.0713
$0.0182
$0.0828
$0.0724
$0.0103
$0.0730 $0.0730
Net Profit increased by $15,507 due mostly to an increase in revenues led by a large increase in the PCA as discussed below. Purchased Power and Fuel
expense accounts were up which led to the increase in PCA. These costs were mostly incurred during just one week in February.
Sales for Resale of $256,531 consisted of $12,281 in market sales, $98,000 in capacity sales to Rice Lake and $146,250 in capacity sales to AEP. February 2020
Sales for Resale of $149,923 consisted of $423 in market sales, $13,500 in capacity sales to AEP, and $136,000 in capacity sales to SMMPA. February 2019
Sales for Resale of $218,647 consisted of $12,429 in market sales, $36,400 in Transalta tolling fees, $53,818 in Transalta energy sales, and $116,000 SMMPA
capacity sales.
Overall Purchased Power increased by $258,789. MRES purchases decreased by $64,113 and market purchases/MISO costs increased by $322,902.
Power Cost Adjustment for February 2021 was $.02206 bringing in an additional $468,397 for the month and $673,497 YTD.
Last year's power cost adjustment for February 2020 generated $98,297 in additional revenue for the month and $249,141 YTD.
HUTCHINSON UTILITIES COMMISSION
GAS DIVISION
FINANCIAL REPORT FOR FEBRUARY, 2021
2021
2020
Di
%Chna
2021
2020
Di
%Chna
Full YrBud
%of Bud
Gas Division
Customer Revenue
$
4,172,627
$ 1,312,822
$ 2,859,805
217.8%
$ 5,537,038
$ 2,762,516
$
2,774,522
100.4%
$
10,104,500
54.8%
Transportation
$
83,480
$ 82,243
$ 1,237
1.5%
$ 168,960
$ 165,422
$
3,539
2.1%
$
998,904
16.9%
Electric Div. Transfer
$
56,879
$ 55,440
$ 1,439
2.6%
$ 113,758
$ 110,881
$
2,878
2.6%
$
682,550
16.7%
Other Revenues
$
18,280
$ 4,392
$ 13,888
316.2%
$ 36,550
$ 28,367
$
8,183
28.8%
$
255,405
14.3%
Interest Income
$
23,466
$ 26,216
$ (2,750)
(10.5%)
$ 37,710
$ 53,343
$
(15,633)
(29.3%)
$
175,000
21.5%
TOTAL REVENUES
$
4,354,733
$ 1,481,115
$ 2,873,618
194.0%
$ 5,894,017
$ 3,120,528
$
2,773,489
88.9%
$
12,216,359
48.2%
Salaries & Benefits
$
133,728
$ 124,507
$ 9,222
7.4%
$ 283,204
$ 283,768
$
(564)
(0.2%)
$
1,900,472
14.9%
Purchased Gas
$
4,521,140
$ 751,423
$ 3,769,717
501.7%
$ 5,354,598
$ 1,592,017
$
3,762,581
236.3%
$
5,538,340
96.7%
Operating Expense
$
59,014
$ 71,289
$ (12,275)
(17.2%)
$ 146,181
$ 144,035
$
2,146
1.5%
$
1,041,036
14.0%
Depreciation
$
90,832
$ 86,637
$ 4,195
4.8%
$ 181,664
$ 172,054
$
9,610
5.6%
$
1,100,000
16.5%
Transfers (City)
$
47,804
$ 47,804
$ -
0.0%
$ 95,608
$ 95,608
$
-
0.0%
$
573,649
16.7%
Debt Interest
$
40,221
$ 45,071
$ (4,850)
0.0%
$ 80,442
$ 90,142
$
(9,700)
10.8%
$
482,650
16.7%
TOTAL EXPENSES
$
4,892,739
$ 1,126,730
$ 3,766,009
334.29/c
$ 6,141,696
$ 2,377,624
$
3,764,072
158.3%
$
10,636,147
57.7%
NET PROFIT/(LOSS)
$
(538,006)
$ 354,385
$ (892,391)
(251.8%)
$
1,580,212
(15.7%)
$ (247,679) $ 742,904 $ (990,583) (133.3%)
2021
2020
Di
%Chna
2021
2020
Di
%Chna
Full YrBud
%of Bud
Gas Division
Residential
77,779,389
67,468,895
10,310,494
15.28%
147,258,838
143,314,259
3,944,579
2.75%
429,017,000
34.3%
Commercial
57,245,415
50,686,201
6,559,214
12.94%
106,109,941
106,022,592
87,349
0.08%
336,067,000
31.6%
Industrial
103,357,677
99,645,216
3,712,461
3.73%
203,159,319
204,070,477
(911,158)
(0.45%)
781,920,000
26.0%
Total CF Sold
238,382,481
217,800,312
20,582,169
9.45%
456,528,098
453,407,328
3,120,770
0.69%
1,547,004,000
29.5%
February February YTD YTD 2021 HUC
2021 2020 Change 2021 2020 Change Budget Target
Gross Margin %
-5.2%
46.1%
-51.2%
7.3%
46.3%
-39.0%
50.5%
Operating Income Per Revenue $ (%)
-12.5%
25.7%
-38.2%
-4.1%
25.0%
-29.2%
14.1%
Net Income Per Revenue $ (%):
-12.5%
24.4%
-36.9%
-4.3%
24.4%
-28.7%
13.4%
Contracted Customer Rev. per CF:
$0.0186
$0.0037
$0.0149
$0.0114
$0.0037
$0.0076
$0.0040
Customer Revenue per CF:
$0.0167
$0.0079
$0.0088
$0.0127
$0.0079
$0.0048
$0.0088
Total Power Supply Exp. per CF:
$0.0190
$0.0036
$0.0154
$0.0118
$0.0036
$0.0082
$0.0038
February 2021 net loss increased by $892,391. This was caused by the huge spike in natural gas prices discussed at the special meeting.
February 2021 fuel cost cost adjustment was $7.96/MCF totalling $1,100,197 for the month and $1,006,185 YTD.
February 2020 credits totalled $149,182 for the month and $298,616 YTD.
Current Assets
UnrestrictedlUndesignated Cash
Cash
Petty Cash
Designated Cash
Capital Expenditures - Five Yr. CIP
Payment in Lieu of Taxes
Rate Stabilization - Electric
Rate Stabilization - Gas
Catastrophic Funds
Restricted Cash
Bond Interest Payment 2017
Bond Interest Payment 2012
Debt Service Reserve Funds
Total Current Assets
Receivables
Accounts (net of uncollectible allowances)
Interest
Total Receivables
Other Assets
Inventory
Prepaid Expenses
Sales Tax Receivable
Deferred Outflows - Electric
Deferred Outflows - Gas
Total Other Assets
Total Current Assets
Capital Assets
Land & Land Rights
Depreciable Capital Assets
Accumulated Depreciation
Construction - Work in Progress
Total Net Capital Assets
Total Assets
HUTCHINSON UTILITIES COMMISSION
BALANCE SHEET - CONSOLIDATED
FEBRUARY 28, 2021
Electric Gas Total
Division Division 2021
Total Net Change
2020 Total (YTD)
6,685,307.36
11,674,802.61
18,360,109.97
16,362,116.88
1,997,993.09
680.00
170.00
850.00
850.00
-
2,750,000.00
700,000.00
3,450,000.00
3,450,000.00
-
1,293,543.00
573,649.00
1,867,192.00
1,867,192.00
-
333,806.28
-
333,806.28
372,736.68
(38,930.40)
-
200,306.61
200,306.61
651,306.61
(451,000.00)
800,000.00
200,000.00
1,000,000.00
500,000.00
500,000.00
995,714.08
-
995,714.08
894,664.05
101,050.03
-
511,912.50
511,912.50
498,962.48
12,950.02
522,335.64
2,188,694.02
2,711,029.66
2,711,029.66
-
13,381,386.36
16,049,534.74
29,430,921.10
27,308,858.36
2,122,062.74
2,508,131.40
4,252,318.24
6,760,449.64
3,358,859.71
3,401,589.93
48,992.65
48,992.65
97,985.30
115,964.64
(17,979.34)
2,557,124.05
4,301,310.89
6,858,434.94
3,474,824.35
3,383,610.59
1,523,871.25
460,284.71
1,984,155.96
1,896,075.63
88,080.33
(70,236.46)
(7,459.98)
(77,696.44)
246,469.28
(324,165.72)
95,261.58
-
95,261.58
93,371.85
1,889.73
313,166.00
-
313,166.00
219,249.00
93,917.00
-
104,390.00
104,390.00
73,083.00
31,307.00
1,862,062.37
557,214.73
2,419,277.10
2,528,248.76
(108,971.66)
17,800,572.78
20,908,060.36
38,708,633.14
33,311,931.47
5,396,701.67
690,368.40
3,899,918.60
4,590,287.00
4,590,287.00
-
108,013,537.76
42,490,114.65
150,503,652.41
133,724,608.32
16,779,044.09
(61,090,721.88)
(18,406,996.77)
(79,497,718.65)
(75,720,975.09)
(3,776,743.56)
1,421,050.00
79,140.09
1,500,190.09
15,882,621.26
(14,382,431.17)
49,034,234.28
28,062,176.57
77,096,410.85
78,476,541.49
(1,380,130.64)
66,834,807.06
48,970,236.93
115,805,043.99
111,788,472.96
4,016,571.03
Current Liabilities
Current Portion of Long-term Debt
Bonds Payable
Bond Premium
Accounts Payable
Accrued Expenses
Accrued Interest
Accrued Payroll
Total Current Liabilities
Long -Term Liabilities
Noncurrent Portion of Long-term Debt
2017 Bonds
2012 Bonds
Bond Premium 2012
Pension Liability- Electric
Pension Liability - Electric OPEB
Pension Liability - Nat Gas
Pension Liability - Nat Gas OPEB
Accrued Vacation Payable
Accrued Severance
Deferred Outflows - Electric
Deferred Outflows - Nat Gas
Total Long -Term Liabilities
Net Position
Retained Earnings
Total Net Position
HUTCHINSON UTILITIES COMMISSION
BALANCE SHEET - CONSOLIDATED
FEBRUARY 28, 2021
Electric Gas Total
Division Division 2021
675,000.00
2,012,244.67
128,963.99
132,268.20
2,948,476.86
14,730,000.00
560,404.08
3,026,207.00
84,054.00
426,032.31
92,360.61
123,417.00
19,042,475.00
1,565,000.00
185,608.32
4,875,162.16
120,662.51
44,159.41
6,790,592.40
9,510,000.00
881,639.15
1,008,736.00
28,018.00
158,832.06
32,026.46
41,139.00
11,660,390.67
2,240,000.00
185,608.32
6,887,406.83
249,626.50
176,427.61
9,739,069.26
14,730,000.00
9,510,000.00
1,442,043.23
3,026,207.00
84,054.00
1,008,736.00
28,018.00
584,864.37
124,387.07
123,417.00
41,139.00
30,702,865.67
Total
2020
2,100,000.00
185,608.32
3,122,503.58
268,626.53
120,046.64
5,796,785.07
15,405,000.00
11,075,000.00
1,661,108.51
2,686,985.00
76,502.00
895,662.00
25,501.00
526,336.29
115,100.18
550,772.00
183,591.00
33,201,557.98
Net Change
Total (YTD)
140,000.00
3,764,903.25
(19, 000.03)
56,380.97
3,942,284.19
(675,000.00)
(1,565,000.00)
(219,065.28)
339,222.00
7,552.00
113,074.00
2,517.00
58,528.08
9,286.89
(427,355.00)
(142,452.00)
(2,498,692.31)
44,843,855.20 30,519,253.86 75,363,109.06 72,790,129.91 2,572,979.15
44,843,855.20 30,519,253.86 75,363,109.06 72,790,129.91 2,572,979.15
Total Liabilities and Net Position 66,834,807.06 48,970,236.93 115,805,043.99 111,788,472.96 4,016,571.03
Hutchinson Utilities Commission
Cash -Designations Report, Combined
2/28/2021
Change in
Financial
Annual
Balance,
Balance,
Cash/Reserve
Institution
Current Interest Rate
Interest
February 2021
January 2021
Position
Savings, Checking, Investments varies varies varies 29,430,921.10 29,622,548.64 (191,627.54)
Total Operating Funds 29,430,921.10 29,622,548.64 (191,627.54)
Debt Reserve Requirements Bond Covenants - sinking fund
Debt Reserve Requirements Bond Covenants -1 year Max. P & I
Total Restricted Funds
1,507,626.58 1,238,417.72 269,208.86
2,711,029.66 2,711,029.66 -
4,218,656.24 3,949,447.38 269,208.86
Operating Reserve
Min 60 days of 2021 Operating Bud.
5,965,162.00
5,965,162.00
Rate Stabalization Funds
534,112.89
985,112.89 (451,000.00)
PILOT Funds
Charter (Formula Only)
1,867,192.00
1,867,192.00
Catastrophic Funds
Risk Mitigation Amount
1,000,000.00
1,000,000.00
Capital Reserves
5 Year CIP ( 2021-2025 Fleet & Infrastructure Maintenance)
3,450,000.00
3,450,000.00
Total Designated Funds
12,816,466.89
13,267,466.89 (451,000.00)
YE
YE
YE
YE
YTD
HUC
2017
2018
2019
2020
2021
Target
Debt to Asset 40.2%
37.7%
34.9%
32.5%
34.9%
Current Ratio 3.36
3.93
5.11
5.67
3.50
RONA 1.82%
3.16%
2.25%
3.36%
-0.46%
Change in Cash Balance (From 12131114 to 113112021)
Month End
Electric
Elec. Change
Natural Gas
Gas Change
Total
Total Change
2/28/2021
13,381,386
16,049,535
29,430,921
12/31/2020
14,239,233
(857,847)
15,019,173
1,030,362
29,258,406
172,515
12/31/2019
12,124,142
2,115,092
13,837,040
1,182,133
25,961,181
3,297,225
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
2/28/2021
Change in
Financial
Annual
Balance,
Balance,
Cash/Reserve
Institution
Current Interest Rate
Interest
February 2021
January 2021
Position
Savings, Checking, Investments varies varies varies 29,430,921.10 29,622,548.64 (191,627.54)
Total HUC Operating Funds 29,430,921.10 29,622,548.64 (191,627.54)
Debt Restricted Requirements Bond Covenants - sinking fund 995,714.08 897,142.72 98,571.36
Debt Restricted Requirements Bond Covenants -1 year Max. P & 1 522,335.64 522,335.64 -
Total Restricted Funds 1,518,049.72 1,419,478.36 98,571.36
:UU:(44UUU3.447
e
Operating Reserve
Min 60 days of 2021 Operating Bud.
4,379,554.00
4,379,554.00
Rate Stabalization Funds
$400K-$1.2K
333,806.28
333,806.28
PILOT Funds
Charter (Formula Only)
1,293,543.00
1,293,543.00
Catastrophic Funds
Risk Mitigation Amount
800,000.00
800,000.00
Capital Reserves
5 Year CIP ( 2021-2025 Fleet & Infrastructure Maintenance)
2,750,000.00
2,750,000.00
Total Designated Funds
9,556,903.28
9,556,903.28
YE
YE
YE
YE
YTD
APPA Ratio
HUC
2017
2018
2019
2020
2021
SK-10K Cust.
Target
Debt to Asset Ratio (* w/Gen.) 35.4%
35.7%
34.1%
32.8%
32.9%
50.1%
Current Ratio 4.36
3.63
5.26
6.18
5.42
2.43
RONA -0.6%
-0.3%
-0.4%
2.1%
-0.4%
NA
Hutchinson Utilities Commission
Cash -Designations Report, Gas
2/28/2021
Change in
Financial
Annual
Balance,
Balance,
Cash/Reserve
Institution
Current Interest Rate
Interest
February 2021
January 2021
Position
Savings, Checking, Investments varies varies
Total HUC Operating Funds
Debt Restricted Requirements Bond Covenants - sinking fund
Debt Restricted Requirements Bond Covenants -1 year Max. P & I
Total Restricted Funds
varies 29,430,921.10 29,622,548.64 (191,627.54)
29,430,921.10 29,622,548.64 (191,627.54)
511,912.50 341,275.00 170,637.50
2,188,694.02 2,188,694.02 -
2,700,606.52 2,529,969.02 170,637.50
Operating Reserve
Min 60 days of 2021 Operating Bud.
1,585,608.00
1,585,608.00
Rate Stabalization Funds
$200K-$600K
200,306.61
651,306.61 (451,000.00)
PILOT Funds
Charter (Formula Only)
573,649.00
573,649.00
Catastrophic Funds
Risk Mitigation Amount
200,000.00
200,000.00
Capital Reserves
5 Year CIP ( 2021-2025 Fleet & Infrastructure Maintenance)
700,000.00
700,000.00
Total Designated Funds
3,259,563.61
3,710,563.61 (451,000.00)
YE
YE
YE
YE
YTD
HUC
2017
2018
2019
2020
2021
APGA Ratio
Target
Debt to Asset 47.6%
40.7%
36.1%
32.1%
37.7%
TBD
Current Ratio 2.74
4.33
4.96
5.17
2.67
TBD
RONA 5.0%
8.3%
6.4%
5.3%
-0.6%
TBD
HUTCHINSON UTILITIES COMMISSION
Investment Report
For the Month Ended February 28, 2021
Interest
Current
Date of
Date of
Par
Current
Purchase
Unrealized
Premium
Next
Institution
Description
Rate
YTM
Purchase
Maturity
Value
Value
Amount
Gain/(Loss)
(Discount)
Call Date
Wells Fargo
Money Market
0.020%
0.020%
NA
NA
-
5,410.57
-
-
-
N/A
Wells Fargo
FHLMC
0.320%
0.320%
07/20/2020
10/20/2022
305,000.00
305,219.60
305,000.00
219.60
-
07/20/2021
Wells Fargo
FHLMC
0.325%
0.325%
08/04/2020
02/03/2023
467,000.00
467,687.60
467,011.22
676.38
11.22
08/03/2021
Wells Fargo
FHLB
0.300%
0.587%
01/29/2021
01/29/2026
295,000.00
293,230.00
295,000.00
(1,770.00)
-
07/29/2021
Wells Fargo
CD's
1.700%
1.700%
02/21/2020
02/22/2022
245,000.00
249,005.75
245,000.00
4,005.75
-
N/A
Wells Fargo
CD's
1.300%
1.300%
03/31/2020
09/30/2021
245,000.00
246,810.55
245,000.00
1,810.55
-
N/A
Wells Fargo
CD's
1.900%
1.900%
08/21/2019
08/23/2021
174,000.00
175,590.36
174,000.00
1,590.36
-
N/A
Wells Fargo
CD's
2.500%
2.500%
04/02/2019
04/05/2021
245,000.00
245,634.55
245,000.00
634.55
-
N/A
Wells Fargo
CD's
1.250%
1.250%
04/08/2020
04/08/2021
245,000.00
245,335.65
245,000.00
335.65
-
N/A
Wells Fargo
CD's
0.300%
0.300%
09/28/2020
12/28/2023
245,000.00
245,019.60
245,000.00
1960.
-
06/28/2021
Wells Fargo
CD's
0.500%
0.698%
07/30/2020
07/30/2025
245,000.00
245,392.00
245,000.00
392.00
-
07/30/2021
Wells Fargo
CD's
0.300%
0.300%
01/08/2021
01/08/2024
245,000.00
245,068.60
245,000.00
68.60
-
08/08/2021
Wells Fargo
CD's
2.000%
2.000%
08/29/2020
08/22/2022
200,000.00
204,454.00
200,000.00
4,454.00
-
03/29/2021
Wells Fargo
CD's
0.200%
0.200%
06/25/2020
06/23/2021
248,000.00
248,124.00
248,000.00
124.00
-
N/A
Wells Fargo
CD's
1.700%
1.700%
01/31/2020
05/03/2021
245,000.00
245,732.55
245,000.00
732.55
-
N/A
Wells Fargo
CD's
1.750%
1.750%
01/29/2020
07/29/2021
245,000.00
246,761.55
245,000.00
1,761.55
N/A
Broker Total
28.7%
3,968,000. 00
3,914,476. 93
3,968,011. 22
(58,944.86)
11.22
Cetera Investment Services
Money Market
0.010%
0.010%
N/A
N/A
-
106,885.50
-
-
-
N/A
Cetera Investment Services
Municipal Bonds
3.139%
2.190%
12/11/2017
09/01/2021
300,000.00
304,221.00
310,116.00
(5,895.00)
10,116.00
N/A
Cetera Investment Services
Municipal Bonds
2.875%
2.121%
04/29/2016
09/01/2021
250,000.00
253,367.50
259,467.50
(6,100.00)
9,467.50
N/A
Cetera Investment Services
Municipal Bonds
3.751%
2.399%
04/29/2016
11/01/2021
250,000.00
255,880.00
267,330.00
(11,450.00)
17,330.00
N/A
Cetera Investment Services
Municipal Bonds
3.436%
3.436%
12/20/2018
12/15/2021
50,000.00
49,558.50
45,155.00
4,403.50
(4,845.00)
N/A
Cetera Investment Services
Municipal Bonds
2.655%
2.208%
12/11/2017
03/01/2022
300,000.00
307,020.00
305,314.92
1,705.08
5,314.92
N/A
Cetera Investment Services
Municipal Bonds
3.000%
3.118%
12/20/2018
08/01/2022
50,000.00
51,498.50
50,377.67
1,120.83
377.67
N/A
Cetera Investment Services
Municipal Bonds
3.633%
3.116%
12/20/2018
09/01/2022
250,000.00
262,222.50
257,217.48
5,005.02
7,217.48
N/A
Cetera Investment Services
Municipal Bonds
3.650%
3.004%
12/20/2018
02/01/2023
250,000.00
259,805.00
256,165.00
3,640.00
6,165.00
N/A
Cetera Investment Services
Municipal Bonds
3.240%
3.240%
11/17/2017
02/15/2023
80,000.00
79,000.80
69,633.48
9,367.32
(10,366.52)
N/A
Cetera Investment Services
Municipal Bonds
3.075%
3.236%
12/20/2018
06/01/2023
50,000.00
52,283.00
49,746.15
2,536.85
(253.85)
N/A
Cetera Investment Services
Municipal Bonds
5.290%
2.724%
04/18/2019
06/01/2023
260,000.00
287,024.40
291,059.96
(4,035.56)
31,059.96
N/A
Cetera Investment Services
Municipal Bonds
2.500%
3.181 %
12/20/2018
08/01/2023
35,000.00
36,380.40
34,320.05
2,060.35
(679.95)
N/A
Cetera Investment Services
Municipal Bonds
3.400%
3.148%
12/20/2018
11/01/2023
125,000.00
134,465.00
126,376.25
8,088.75
1,376.25
N/A
Cetera Investment Services
Municipal Bonds
3.400%
3.148%
12/20/2018
11/01/2023
65,000.00
69,921.80
65,715.65
4,206.15
715.65
N/A
Cetera Investment Services
Municipal Bonds
2.854%
3.173%
12/20/2018
02/01/2024
100,000.00
106,902.00
99,605.96
7,296.04
(394.04)
N/A
Cetera Investment Services
Municipal Bonds
2.977%
3.246%
12/20/2018
03/15/2024
250,000.00
269,195.00
248,743.99
20,451.01
(1,256.01)
N/A
Cetera Investment Services
Municipal Bonds
1.940%
1.821 %
01/13/2020
05/01/2024
65,000.00
67,906.80
65,570.70
2,336.10
570.70
N/A
Cetera Investment Services
Municipal Bonds
5.742%
3.658%
04/11/2019
08/01/2024
355,000.00
391,323.60
464,344.41
(73,020.81)
109,344.41
N/A
Cetera Investment Services
Municipal Bonds
2.528%
1.918%
01/13/2020
12/01/2024
100,000.00
105,349.00
102,999.53
2,349.47
2,999.53
N/A
Cetera Investment Services
Municipal Bonds
3.922%
3.429%
12/20/2018
12/01/2024
204,000.00
226,521.60
208,181. 10
18,340.50
4,181.10
N/A
Cetera Investment Services
Municipal Bonds
4.400%
3.221%
04/11/2019
07/01/2025
500,000. 00
521,125. 00
539,101.11
(17,976.11)
39,101.11
07/01/2023
Cetera Investment Services
Municipal Bonds
5.640%
3.007%
04/18/2019
08/15/2025
205,000.00
187,427.40
169,737.95
17,689.45
(35,262.05)
N/A
Cetera Investment Services
Municipal Bonds
3.743%
2.740%
04/18/2019
09/15/2025
215,000.00
244,128.20
228,334.53
15,793.67
13,334.53
N/A
Cetera Investment Services
Municipal Bonds
3.379%
1.934%
08/19/2019
10/01/2025
310,000.00
336,796.40
339,739. 18
(2,942.78)
29,739.18
N/A
Cetera Investment Services
Municipal Bonds
5.600%
1.186%
07/28/2020
12/01/2025
45,000.00
54,267.30
55,250.55
(983.25)
10,250.55
N/A
Cetera Investment Services
Municipal Bonds
4.250%
3.258%
04/11/2019
01/01/2026
500,000.00
541,645.00
529,769.03
11,875.97
29,769.03
N/A
Cetera Investment Services
Municipal Bonds
2.420%
1.175%
10/06/2020
03/01/2026
100,000.00
105,352.00
106,734.28
(1,382.28)
6,734.28
N/A
Cetera Investment Services
Municipal Bonds
1.609%
1.124%
09/24/2020
04/01/2026
285,000.00
284,712. 15
292,370. 10
(7,657.95)
7,370.10
N/A
Cetera Investment Services
Municipal Bonds
6.690%
3.356%
04/18/2019
04/15/2026
60,000.00
52,676.40
47,545.20
5,131.20
(12,454.80)
N/A
Cetera Investment Services
Municipal Bonds
5.900%
1.451 %
07/28/2020
06/15/2026
75,000.00
90,618.00
93,741.75
(3,123.75)
18,741.75
N/A
Cetera Investment Services
Municipal Bonds
0.000%
1.415%
08/13/2020
07/01/2026
100,000.00
86,106.00
92,037.00
(5,931.00)
(7,963.00)
N/A
Cetera Investment Services
Municipal Bonds
3.250%
2.903%
04/18/2019
08/01/2026
500,000.00
526,520.00
514,790.69
11,729.31
14,790.69
N/A
Cetera Investment Services
Municipal Bonds
2.150%
2.203%
07/01/2019
12/01/2026
40,000.00
40,890.80
40,150.64
740.16
150.64
N/A
Cetera Investment Services
Municipal Bonds
1.664%
1.150%
08/27/2020
09/01/2026
225,000.00
222,781.50
231,696.00
(8,914.50)
6,696.00
N/A
Cetera Investment Services
Municipal Bonds
2.375%
1.816%
09/04/2019
12/01/2026
90,000.00
94,844.70
93,395.70
1,449.00
3,395.70
N/A
Cetera Investment Services
Municipal Bonds
2.350%
2.191%
07/01/2019
12/01/2026
500,000.00
519,480.00
505,385.00
14,095.00
5,385.00
N/A
Cetera Investment Services
Municipal Bonds
3.000%
1.991 %
08/19/2019
02/01/2027
50,000.00
54,135.50
53,551.00
584.50
3,551.00
N/A
Cetera Investment Services
Municipal Bonds
3.150%
2.034%
08/19/2019
03/15/2027
100,000.00
110,246.00
109,138.50
1,107.50
9,138.50
N/A
Cetera Investment Services
Municipal Bonds
3.332%
3.120%
04/18/2019
04/15/2027
500,000.00
561,710.00
507,783.94
53,926.06
7,783.94
N/A
Cetera Investment Services
Municipal Bonds
3.865%
2.470%
08/19/2019
05/01/2027
55,000.00
61,617.05
60,986.48
630.57
5,986.48
05/01/2025
Cetera Investment Services
Municipal Bonds
3.553%
2.289%
08/19/2019
05/01/2027
55,000.00
60,453.25
60,468.04
(14. 79)
5,468.04
05/01/2026
Cetera Investment Services
Municipal Bonds
3.230%
1.828%
08/19/2019
05/15/2027
145,000.00
161,006.55
160,827.31
179.24
15,827.31
N/A
Cetera Investment Services
Municipal Bonds
3.000%
3.101%
05/18/2020
09/01/2027
65,000.00
70,356.65
69,180.58
1,176.07
4,180.58
09/01/2025
Cetera Investment Services
Municipal Bonds
2.817%
2.817%
09/25/2019
10/01/2027
35,000.00
28,779.45
27,969.55
809.90
(7,030. 45)
05/01/2025
Cetera Investment Services
Municipal Bonds
3.270%
2.141%
08/19/2019
03/15/2028
155,000. 00
171,631.50
170,805. 09
826.41
15,805.09
09/15/2027
Cetera Investment Services
Municipal Bonds
2.974%
2.574%
11/07/2019
04/01/2028
75,000.00
78,915.00
77,253.00
1,662.00
2,253.00
N/A
Cetera Investment Services
Municipal Bonds
3.140%
2.004%
08/19/2019
08/01/2028
500,000.00
548,075.00
547,105.00
970.00
47,105.00
08/01/2027
Cetera Investment Services
Municipal Bonds
3.000%
2.199%
05/19/2020
08/15/2028
90,000.00
95,159.70
95,401.80
(242.10)
5,401.80
08/15/2025
Cetera Investment Services
Municipal Bonds
3.000%
1.942%
08/19/2019
06/01/2029
115,000.00
129,506. 10
125,961.80
3,544.30
10,961.80
N/A
Broker Total
71.3%
8,779,000. 00
9,717,694. 50
9,523,651. 60
87,157.40
444,651.60
TOTAL INVESTMENTS
100.0%
$ 12,747,000.00 $ 13,632,171.43 $ 13,491,662.82 $
28,212.54 $
444, 662.82
Product Type
2/282021
Total Value
% of
Total
1/312021
Total Value
% of
Total
Monthly
Change
Maturity
Less than 1 year
1 - 2 years
Current Value %
$2,878,318.03 21.1%
1,936,908.00 14.2%
BE Money Market $112,296.07 0.8% $74,217.30 0.5% $38,078.77
CD's
2,842,929.16
20.9%
2,845,534.35
20.8%
(2,605.19)
2 - 3 years
1,177,064.80 8.6%
Government Bonds
1,066,137.20
7.8%
1,067,139.23
7.8%
(1,002.03)
3 - 4 years
1,060,296.00 7.8%
' Municipal Bonds
9,610,809.00
70.5%
9,699,704.80
70.9 %
88,895.80
4 - 5 years
2,424,011.30 17.8%
TOTAL
$13,632,171.43 100.0% $13,686,595.68 100.0%
($54,424.25)
5+years
4,155,573.30 30.5%
TOTAL
$13,632,171.43 100.0%
Money Market
CD's
$4,500,000.00
20.9%
...., ....,
...., ...., ....,
�4,1SS,S73
IIII IIui
$4,000,000.00
'
$3,500,000.00
.... .....
.... .... .....
$3,000,000.00
$2,878,318 .....
........ ...... .....
$2,500,000.00
_..... .........
......... ,......... $2424.011..........
$1,936,908
$2,000,000.00
$1,500,000.00
$1,177, 065
Municipal Bonds
$500,000.00
1---1
,,,,,,...........
.,.,.,.,.,.,.,.,., .,.,.,.,.,.,.,.,., .,.,.,.
$000
Government Bon ds
Less than 1 1-2 years
2-3years 3-4years 4-Syears S+years
7.8%
year
ELECTRIC DIVISION
Operating Revenue
February 2021
CLASS
AMOUNT
KWH
/KWH
Street Lights
$20.93
384
$0.05451
Electric Residential Service
$522,825.33
4,210,637
$0.12417
All Electric Residential Service
$39,911.26
353,532
$0.11289
Electric Small General Service
$185,030.19
1,503,358
$0.12308
Electric Large General Service
$688,450.80
6,382,140
$0.10787
Electric Large Industrial Service
$842,735.67
8,789,000
$0.09589
Total
$2,278,974.18
21,239,051
$0.10730
Power Adjustment
$0.02206
Rate Without Power Adjustment
$0.08524
Electric Division Year -to -Date
M2021$A--t 02020$A--t ■2021 KWH110 02020KWH110
5,000,000
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
Street Lights Residential All Elec. Small Gen. Large Gen. Large For Resale Total
Resid. Srv. Srv. Industrial
NOTE: Sales for resale includes capacity sales, market sales and Transalta sales.
NATURAL GAS DIVISION
Operating Revenue
FEBRUARY 2021
CLASS
AMOUNT
MCF
/$ MCF
Residential
$1,297,840.59
77,779
$16.68626
Commercial
$988,378.29
57,245
$17.26576
Large Industrial
$32,985.56
3,790
$8.70331
Large Industrial Contracts
$1,853,422.69
99,568
$18.61464
Total
$4,172,627.13
238,382
$17.50395
® 2021 $ Amount
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
Fuel Adjustment $7.96000
Rate Without Fuel Adjustment $9.54395
Natural Gas Division Year -to -Date
0 2020 $ Amount ■ 2021 MCF 132020 MCF
Gas Residential Gas Commercial Large Industrial Large Industrial Total
Contracts
HUTCHINSON UTILITIES COMMISSION
,c�,«
Board Action Form
'AlUTlt
Agenda Item: Review Policies
Jeremv Carter
Review Policies
BACKGROUND/EXPLANATION OFAGENDA ITEM:
es
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:
Section 3 of Exempt Handbook
Section 3 of Non -Exempt Handbook
BOARD ACTION REQUESTED:
None
EXEMPT
SECTION 3 — HOURS AND CONDITIONS OF EMPLOYMENT
Staff Personnel will establish work schedules, subject to the General Manager's approval. The
regular work week is five 8-hour working days with two consecutive days off. The normal work
week is Monday through Friday, except as otherwise established by Staff Personnel based on the
customers' and Department's needs.
The Utilities office hours are 7:30 a.m. to 4:00 p.m. Monday through Friday.
FLEXTIME PROGRAM
HUC's flextime program allows exempt employees to vary their scheduled work hours to conform
with the operations of the Utilities. Flextime is approved by the employee's Manager or Director.
REST PERIODS
Employees may take one 15-minute paid rest period during each four-hour work period. One rest
period is taken in the morning and the other rest period is taken in the afternoon. Rest periods shall
not be cumulative and shall not be utilized to compensate for other absences.
MEAL PERIODS
Employees receive an unpaid meal period either one-half hour or one -hour long for a shift lasting
at least six hours. Meal periods shall not be cumulative and shall not be utilized to compensate for
other absences.
ATTENDANCE/TARDINESS
Employees are expected to work or use approved leave for all their scheduled hours.
Unsatisfactory attendance including reporting late, quitting early or excessive absenteeism shall
be cause for disciplinary action. An employee anticipating being late for any reason, must contact
his/her Director, Manager or Supervisor as far in advance as possible. Employees are also required
to report to their Director, Manager or Supervisor if they are ill and unable to continue working. If
an employee is ill and cannot report to work, the employee must notify his/her Director, Manager
or Supervisor before the scheduled start of the workday.
INCLEMENT WEATHER
If inclement weather causes an employee to arrive late or leave the job early, the employee must
use vacation time, floating holiday, compensatory time or time without pay for the portion of the
scheduled shift the employee did not work. If the General Manager determines it is necessary to
close HUC offices due to weather, all employees will be paid their regular pay. Essential
employees will be required to remain on -duty, however, they will be given comparable time off at
a later date. If an essential employee living within the limits of the City of Hutchinson cannot get
to the job site due to inclement weather, a HUC vehicle or snowplow will be dispatched to pick up
the essential employee.
NON-EXEMPT
SECTION 3 — HOURS AND CONDITIONS OF EMPLOYMENT
See Union Contract.
REST PERIODS
Employees may take one 15-minute paid rest period during each four-hour work period. Rest
periods are taken during the second and third hours and between the sixth and seventh hours of the
workday. During the summer, the afternoon rest period shall be taken when the Manager or
Director deems it appropriate. Rest periods shall not be cumulative and shall not be utilized to
compensate for other absences.
MEAL PERIODS
Employees receive an unpaid meal period of one-half hour for a shift lasting at least six hours.
Meal periods may not be cumulative and may not be utilized to compensate for other absences.
ATTENDANCE/TARDINESS
Employees are expected to work or use approved leave for all their scheduled hours.
Unsatisfactory attendance including reporting late, quitting early or excessive absenteeism shall
be cause for disciplinary action. An employee anticipating being late for any reason, must contact
his/her Director or Manager as far in advance as possible. Employees are also required to report to
the Director or Manager if they are ill and unable to continue working. If an employee is ill and
cannot report to work, the employee must notify his/her Director or Manager before the scheduled
start of the workday.
USE OF FACILITIES DURING OFF -DUTY HOURS
Employees are not allowed on -site during off -duty hours without prior approval of a Director or
Manager.
INCLEMENT WEATHER
If inclement weather causes an employee to arrive late or leave the job early, the employee must
use vacation time, floating holiday, compensatory time or time without pay for the portion of the
scheduled shift the employee did not work. If the General Manager determines it is necessary to
close HUC offices due to weather, all employees will be paid their regular pay. Essential
employees will be required to remain on -duty, however, they will be given comparable time off at
a later date. If an essential employee living within the limits of the City of Hutchinson cannot get
to the job site due to inclement weather, a HUC vehicle or snowplow will be dispatched to pick up
the essential employee.
HUTCHINSON UTILITIES COMMISSION�1`
Board Action Form
�rMturscti
mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm
Agenda Item: HUC Solar Array Land Lease Agreement
Presenter: Jeremy
Agenda Item Type:
Time Requested (Minutes): 10
New Business
Attachments,: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
Hutchinson Utilities Commission approved at its January 27th Commission meeting
awarding a bid to Zeigler Power to erect a 766KW DC solar array at an installed cost of
$976,967.
As part of the project, and prior to approving the final contract with Zeigler Power, HUC
has to enter into a land lease agreement with the City of Hutchinson. Enclosed in the
packet is the proposed lease agreement between Hutchinson Utilities Commission and
the City of Hutchinson. The annual lease payment of $40,000/year equates to the
average annual solar array output savings based on the difference between the city's
annual retail rate costs and the cost of solar production which would be set at 5
cents/kwhr.
Approving the land lease agreement would keep the project on schedule. The City is
expected to sign the lease agreement on April 13th. Shortly thereafter, HUC can approve
the final contract with Zeigler.
BOARD ACTION REQUESTED:
Approve the land lease agreement with the City of Hutchinson
Fiscal Impact: $40,000/yr
Included in current budget: No Budget Change: No
PROJECT SECTION:
Total Project Cost: Remaining Cost:
Real Estate Lease Agreement
This real estate lease agreement (the "Agreement") is made
this day of , 2021 by and between the City of
Hutchinson, Minnesota having an address of 111 Hassan St. SE.,
Hutchinson, Minnesota, 55350 ("Landlord") and the Hutchinson
Utilities Commission having an address of 225 Michigan St. SE.,
Hutchinson, Minnesota 55350 ("Tenant") and is to allow tenant to
construct and operate a solar power generating facility.
1. Leased premises. Landlord shall lease to tenant and tenant
shall lease from landlord, pursuant to the terms of this
agreement, an area of land in the city of Hutchinson,
McLeod County, Minnesota, specifically described as: The
North 69 feet of Lot 2 and Lot 3 and 1/ of the Vacated
Superior St., Southeast (1106 Industrial Blvd. SE.) and Lot
One, Block One, Energy Park North 2nd Addition (250
Hackbarth St. SE.)
2. Term. The lease term shall be as follows:
a. The primary term of this lease shall be 20 years
commencing on the date in which this lease was entered
into.
b. Tenant shall have the option and right to elect to extend
this lease for up to two (2) five (5) year extensions
(each such extension referred to as a "Renewal Term", or
collectively as the "Renewal Terms"). Tenant shall give
landlord written notice of its election to extend the
lease on or about the commencement of the 20th year of the
Primary Term, or no later than 60 days prior to the end
of the then current Renewal Term, as appropriate.
c. A Final Term commencing upon expiration of the Primary
Term, or expiration of the last Renewal Term, as
appropriate, to allow for tenants decommissioning and
removal of the solar generating facility. The Final Term
shall last no longer than 6 (6) months, unless extended
per mutual written agreement of the Tenant and Landlord.
3. Rent. The rent paid by tenant to landlord for the use of
the premises shall be $40,000 per year, which shall be
payable to the landlord by January 31 of each year. $4000
of the $40,000 shall be paid to the Hutchinson Economic
Development Authority by the landlord.
4. Improvements of The Leased Premises.
a. Components. Tenant shall construct an AC solar power
generating facility at its sole expense. The solar power
generating facility shall consist of racking and support
apparatus, inverters and transformers; necessary
electrical interconnections and all improvements and
connections required to transfer and deliver generation
off -site, security fencing and gating, safety signage and
the solar photovoltaic panels (collectively the "site
improvements and infrastructure"). Landlord has no
obligation to make improvements on the leased premises or
landlord property to accommodate the solar power
generating facility.
b. Construction plans. For any construction on the leased
premises, such construction shall be designed and built
to the minimum standards for any county, state and
federal codes and requirements in effect at the time of
the construction, including without limitation, the
applicable building and fire codes.
c. Signage. Tenant shall have the right to place signs
advertising the solar generating facility provided that,
prior to the installation of any such signage, tenant has
obtained all required sign permits from the local
governing authority, and all signage shall be in
conformity with regulations pertaining to signs.
d. Fencing. Tenant shall maintain a fence around the solar
farm for the duration of the Primary Term and any
extensions thereto and shall keep such fencing
maintained.
5. Inaress, Earess, Utilitv and Solar Easement.
The rights granted to tenant in this lease include, without
limitation, the following easements and related rights:
a. The exclusive right to erect, construct, reconstruct,
replace, relocate, remove, operate, maintain and use the
following from time to time, on under over and across the
leased premises, in connection with the solar power
generating facility all poles, with such wires and cables
as from time to time are suspended therefrom, and/or
underground wires and cables for the transmission of
electrical energy and/or for communication purposes, and
all necessary and proper foundations, footings, crossarms
and other appliances and fixtures for use in connection
with said utility poles wires and cables (collectively
"transmission facilities"); (b) facilities consisting of
one or more substations for electrical collection, to
step up the voltage, interconnected transmission line or
lines, and meter electricity, together with the right to
perform all other ancillary activities normally
associated with such a facility as may be necessary or
appropriate to service the solar power generating
facility, regardless of where they are located
(collectively "interconnection facilities" which
collectively with the transmission facilities and
improvements installed in connection with the solar power
generating facility, collectively constitute the "solar
improvements"); and (c) with all necessary easements
therefor;
b. An easement and right over and across the landlord's
property for any audio, visual, view, light, shadow,
noise, vibration, electromagnetic or other effect of any
kind or nature whatsoever resulting, directly or
indirectly, from the solar power generating facility,
including but not limited to rights to cast shadows and
reflect clear onto all of landlord's property including
any adjoining property, from the solar power generating
facility and/or any and all other related facilities,
wherever located;
c. An exclusive easement and right to capture, use and
convert sunlight and related solar resources on an
unobstructed basis over and across the landlord property;
any obstruction to the receipt of and access to sunlight
throughout the entire area of the leased premises is
prohibited;
d. An access easement over and across the landlord's
property for ingress and egress to the leased premises,
to and from a public road and a construction and utility
easement over landlord's property adjacent to the leased
premises for construction and maintenance of the solar
improvements.
e. An exclusive right for the installation, use, repair,
replacement and removal of transmission facilities across
the landlord's property;
f. An exclusive right for the installation, use, operation,
maintenance, repair, replacement and removal of
interconnection facilities across the landlord's
property;
g. An easement and right on the landlord's property to
prevent measurable diminishment in output due to
obstruction of the sunlight across the leased premises
including, but not limited to, an easement right to trim,
cut down and remove all trees, rocks, brush, vegetation
and fire and electrical hazards now or hereafter existing
on the landlord's property which might obstruct receipt
of or access to sunlight throughout the leased premises
or interfere with or endanger the solar power generating
facility or tenant's operations, and dispose of such
items in its sole discretion;
h. The right of subadjacent and lateral support on the
landlord's property to whatever is necessary for the
operation and maintenance of the solar power generating
facility, including, without limitation, guy wires and
support; and,
i. The right to undertake any such purposes or other
activities, whether accomplished by tenant or third party
authorized by tenant, that tenant determines are
necessary, useful or appropriate to accomplish any of the
purposes or uses set forth in this agreement or that are
compatible with such purposes or uses.
j. The right to invite members of the public to the site for
educational or promotional purposes with the tenant being
responsible for any injuries to third parties or property
damage sustained through these educational or promotional
events with the tenant indemnifying and holding harmless
the landlord from any claims arising out of these events.
6. Maintenance and Security.
a. Maintenance. The solar power generating facility shall be
maintained by tenant at its own expense. Tenant shall
maintain, protect and preserve the solar power generating
facility in a safe, neat and attractive condition and in
good and serviceable repair.
b. Snow removal. Snow removal on the leased premises, if
needed, shall be the responsibility of tenant as
necessitated by tenant's operation of the solar power
generating facility. Any snow removal activities will
minimize any damage to the existing ground surface or the
site. Tenant will promptly repair any damage caused by it
snow removal activities.
c. Security. Security for the solar power generating
facility shall be the responsibility of the tenant.
Nothing in this agreement shall be construed to impose
security obligations upon landlord. Landlord shall not be
liable for any loss or damages suffered by tenant or
third parties due to tenants and such third parties use,
occupancy, or activities on the leased premises.
7. Assignment. Neither party to this agreement shall assign
its interest in this agreement without the express written
consent of the other party.
8.Notices. All notices, demands, requests, consents,
approvals and other instruments required open permitted to
be given pursuant to this agreement shall be in writing,
and signed by the notifying party and sent by registered or
certified mail, postage prepaid, return receipt requested,
and addressed as follows:
To landlord: City Administrator
City of Hutchinson
111 Hassan St. SE.
Hutchinson, MN 55350
To tenant: General Manager
Hutchinson Utilities Commission
225 Michigan St. SE.
Hutchinson, MN 55350
9. Insurance. At all times during the term of this lease,
tenant shall maintain in full force a commercial and
general insurance policy covering tenant's operations,
activities, and liabilities on the leased premises, having
singly or in combination limits of not less than $2 million
in the aggregate, or the maximum tort exposure set for
municipalities under Minnesota law, whichever is greater.
Such policy shall name the landlord as an additional
insured under such policy as the landlord's interest may
appear. Upon landlord's request, the tenant shall give
landlord a certificate of insurance evidencing that the
insurance required under this agreement is in force.
10. Operating expenses. Tenant shall fully and properly
pay for all water, gas, heat, light, power, telephone
service, and other public utilities furnished to the leased
premises and used by tenant throughout the term hereof, and
all of the costs and expenses of every kind whatsoever in
connection with the use, operation, and maintenance of the
leased premises and all activities conducted thereon.
11. Maintenance by Landlord. Landlord shall maintain its
property adjacent to the leased premises in good condition
and state of repair to avoid interference with tenant's use
of the leased premises and the easements. Landlord shall
not construct or permit to be constructed structures or
plant or permit to be planted trees adjacent to the leased
premises that will impede solar access to the solar power
generating facility.
12. Liabilities to Third Parties: Risk of Loss. Tenant
shall hold landlord harmless from any liability (including
reimbursement of landlord's reasonable legal fees and all
costs) for death or bodily injury to third parties, or
physical damage to the property of third parties, to the
extent caused by the fault of tenant or any of tenant's
agents, servants, employees, or licensees, and landlord
shall hold tenant harmless from any liability (including
reimbursement of tenants reasonable legal fees and all
costs) for death or bodily injury to third parties, or
physical damage to the property of third parties, to the
extent caused by the fault of landlord or any of landlord's
agents, servants, employees, or licensees. Notwithstanding
any provisions herein to the contrary, it is understood and
agreed that all property kept, installed, stored, or
maintained in or upon the leased premises by tenant shall
be so installed, kept, stored, or maintained at the risk of
the tenant. Landlord shall not be responsible for any loss
or damage to equipment owned by tenant that might result
from tornadoes, lightning, windstorm's or other acts of
God. The covenants of this paragraph shall survive and be
enforceable and shall continue in full force and effect for
the benefit of the parties and their respective subsequent
transferees, successors, and assigns, and shall survive the
termination of this lease whether by expiration or
otherwise.
13. Default and Termination for Default. Landlord or
Tenant shall be in default of this Lease if either party
breaches any material provision hereof and said breach is
not cured by the breaching party within sixty (60) days of
receipt of notice of said breach from the nonbreaching
party, or if such cure cannot reasonably be had within said
sixty (60) day period, then if cure of such breach is not
commenced within thirty (30) days of receipt of such notice
and not thereafter completed using diligent efforts. Upon
the breaching party's failure to cure its breach within
such time, as applicable, the non -breaching party shall
have the right to terminate this Lease for default, and to
pursue such remedies as may be available in law or equity.
14. Binding on Successors. The covenants and conditions
contained herein shall apply to and bind the heirs,
successors, executors, administrators, and assigns of the
parties hereto.
15. Access to Premises. In addition to the Easement
granted in Section 5, Tenant and its engineers, officers,
employees, agents, and contractors shall have full access
to the Leased Premises during the term.
16. Change in Generation Apparatus. The parties recognize
that because of evolving technologies or regulatory
mandates, the means of generating electricity on the site
must be changeable in order to meet governmental mandates
and to remain as economically feasible as possible. In
recognition of this, tenant shall be permitted to alter the
means of generating the electricity on the site in order to
meet the aforementioned mandates and economic
considerations. Any alteration in the means of generating
electricity must meet all state, federal, and local
regulations and must be a "green" method of generating
electricity. Regardless of the change in the method of
electrical generation, all other portions of this lease
agreement shall apply throughout the life of the agreement.
17. Governing Law. The parties intend that this Agreement
and the relationship of the parties shall be governed by
the laws of the State or Commonwealth in which the Leased
Premises are located.
18. Entire Agreement. All of the representations and
obligations of the parties are contained herein, and no
modification, waiver, or amendment of this Agreement or of
any of its conditions or provisions shall be binding upon a
party unless in writing signed by that party or a duly
authorized agent of that party empowered by a written
authority signed by that party. The waiver by any party of
a breach of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent
breach of that provision by the same party, or of any other
provision or condition of the Agreement.
19. Mechanic's Liens. Tenant will not cause any mechanic's
or materialman's lien to be placed on the Leased Premises,
and Tenant agrees to indemnify, defend, and hold harmless
Landlord from any such lien from a party claiming by,
through, or under Tenant; provided that Tenant shall be
permitted to remove any such lien by bond or other suitable
instrument.
City of Hutchinson
Hutchinson Utilities
Commission
Mayor President
Date: Date:
City Administrator
Secretary
Date: Date:
HUTCHINSON UTILITIES COMMISSION�1`
Board Action Form
�rMturscti
mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm
Agenda Item: Approval of Natural Gas Facilities Maintenance Agreement - City of Fairfax
Presenter: Jeremy Carter
Agenda Item Type:
Time Requested (Minutes): 2
New Business
Attachments,: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
The City of Fairfax has requested that the Natural Gas Division of Hutchinson Utilities
Commission commence performing the maintenance, as required by DOT, of the natural
gas transmission/distribution metering, regulating, odorizing, water bath heater and line
control facilities serving the Cities of Fairfax and Gibbon effective April 1, 2021.
Hutchison Utilities must present proof of PHMSA Drug and Alcohol Testing as well as
pertinent Operator Qualifications for all Natural Gas Division staff performing work on the
City of Fairfax facilities.
The term for this Agreement is one year.
BOARD ACTION REQUESTED:
Approval of Maintenance Agreement
Fiscal Impact: Minimal
Included in current budget: No Budget Change: No
PROJECT SECTION:
Total Project Cost: 0.00 Remaining Cost: 0.00
HUTCHINSON UTILITIES COMMISSION
MAINTENANCE AGREEMENT
NATURAL GAS FACILITIES
City of Fairfax
03/01/2021
This document sets forth the terms and conditions of service for operation and maintenance of
the City of Fairfax's natural gas transmission/distribution metering, regulating, odorizing, water
bath heater and line control facilities provided to the City of Fairfax by Hutchinson Utilities
Commission.
NATURAL GAS FACILITIES MAINTENANCE AGREEMENT
THIS NATURAL GAS FACILITIES MAINTENANCE AGREEMENT ("Agreement") is
made and entered into on this 31st day of March, 2021, by and between the City of Fairfax
("Owner") with offices located at 18 1` Ave SE, Fairfax, Minnesota, 55332 and Hutchinson
Utilities Commission ("Operator") a Minnesota municipal utility located at 225 Michigan St. SE,
Hutchinson, Minnesota, 55350. Owner and Operator shall hereinafter sometimes be referred to
separately as "Party" or jointly as "Parties."
WITNESSETH:
WHEREAS, Owner has constructed or is constructing the Natural Gas Facilities (as
hereinafter defined);
WHEREAS, Owner desires to retain Operator to Maintain the Natural Gas Facilities on
behalf of Owner, and Operator is willing to provide said services on the terms and conditions set
forth herein.
NOW, THEREFORE, in consideration of the premises, mutual covenants, conditions and
agreements herein contained the parties hereto, intending to be legally bound, hereby agree as
follows:
ARTICLE I: DEFINED TERMS
Section 1.1 Definitions.
The defined terms used in this Agreement shall, unless the context otherwise requires, have the
meanings specified in this Article I.
"Agreement" means this Natural Gas Facilities Maintenance Agreement, as the same may
from time to time be amended with written consent of Owner and Operator.
"Business Day" means any day except Saturday, Sunday or Federal Reserve Bank
Holidays.
"Commencement Date" shall mean "Nine a.m. Central Clock Time" on April 1, 2021.
"Emergency" means any suspected or actual abnormal condition that has already caused,
OMa i—and M.inla—Age —t 1
Natural Gas Facilities
Cily.ffwdax
mnn we sk,
or represents an imminent threat to cause, Facility failure or damage, danger to or loss of
life, pollution, or any hazardous condition.
"Facility" or "Facilities" means the natural gas metering and regulation equipment
belonging to Owner, including all apparatuses, located at the Fairfax Interconnect station
on the Hutchinson Pipeline, the District Regulator Stations serving the Cities of Fairfax
and Gibbon as well as two block valve sites located on the Owner's high-pressure
transmission/distribution line.
"Gas" shall mean natural gas, manufactured, artificial or synthetic gas, or any mixture or
combination thereof.
"Gas Day" shall mean a period beginning and ending at 9:00 a.m., Central Clock Time.
The reference date for any day shall be the date of the beginning of such day.
"Governmental Authority" means (i) the United States of America, (ii) any state, county,
parish, municipality or other governmental subdivision within the United States of
America, and (iii) any court or tribunal or any governmental department, commission,
board, bureau, agency or other instrumentality of the United States of America or of any
state, county, parish, municipality or other governmental subdivision within the United
States of America.
"Law" means any applicable statute, law, ordinance, regulation, rule, ruling, order, decree,
writ, injunction, judgment or other official act of or by any Governmental Authority.
"Maintenance Fee" means the fee for Operator performing Maintenance of the Facilities
and Routine Work.
"Maintenance" means all work or services required to be furnished or performed by
Operator pursuant to this Agreement.
"Operator" means Hutchinson Utilities Commission and its permitted successors and
assigns hereunder.
"Owner" means City of Fairfax and its permitted successors and assigns hereunder.
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. . ........... . ..... ... ........... . . ..........
"Permits" means all licenses, permits, certificates, orders, approvals and authorizations of
any Governmental Authority necessary for or obtained in connection with operation of the
Facilities or performance of the Operations.
"Person" means any individual, firin, corporation, partnership, joint venture, association,
trust or other entity or air gani7ation, including a government or political subdivision or an
agency or instrumentality thereof
"Routine Work" includes day-to-day maintenance, testing and repair and more particularly
defined in Exhibit C of this Agreement.
"Non -Routine Worle' includes work not included in the Routine Work, but shall be
provided on an as -needed basis. Said services and.fees are set forth in.Exhibit.D.
"Yeae'or "year" means a period of 12 consecutive months commencing with April I and
ending on the following March 31
Section I.2 References, Gender Number.,
Unless the context requires otherwise, all references in this Agreement to an "Article ... .. Section"
or "Subsection" shalt be to an Article, Section or Subsection of this Agreement, and the words
"this Agreement," "hereof .. .. hereunder ... .. herein," "hereby," or words of similar import shall refer
to this Agreement as a whole and not to a particular Article, Section, subsection, clause or other
subdivision hereof, Whenever the context requires, the words used he.rein shall include the
masculine, feminine and neuter gender, and the singular and the plural.
ARTICLE H- IU' SPONSIBILITIES OF OPERAIDR
Section 2.1 Gem era.I.Re.51.1gpsibilities.
...............................
(a) General.
Operator is hereby appointed to perform the Maintenance according to prudent practices
generally followed by the gas pipeline industry under similar circumstances. To the extent
necessary to carry out its duties hereunder, Operator certifies that it is qualified under the
Opwatims and Maintenance Afire t
Natural Gas Facilities 3
City ofF.H..
John Webster
. .. ...... . .........
Operator Qualification Program as required by the federal Department of Transportation
and the Minnesota Office of Pipeline Safety. Operator also certifies that it complies with
the Federal requirements outlined in 49 CFR Parts 40 and 199 pertaining to alcohol and
controlled substance testing. Operator shall provide Owner with the services required for
the testing, maintenance and repair of the Facilities as more fully described below and in
Exhibit C and D. Owner and Operator shall have unrestricted access to the Facilities. It is
expressly understood and agreed that in the performance of its obligations under this
Agreement, Operator is and shall at all times be an independent contractor. Operator, as
an independent contractor, shall be solely responsible for its employees and equipment.
Owner acknowledges that the Maintenance is dependent upon Owner providing Operator
access to the Facilities.
(b) Routine Work.
On and after the Commencement Date, Operator shall perform or cause to be performed
all Routine Work for the Facilities, including but not limited to, repair, improvement,
maintenance, alteration, inspection, testing, protection and other operations and activities
with respect to the Facilities as are reasonably necessary to maintain the Facilities in a
"first-class operating condition" in accordance with the federal safety and maintenance
standards promulgated under 49 CFR Part 192 and the regulations of the Minnesota Office
of Pipeline Safety. The Routine Work is described in greater detail in Exhibit C.
(c) Emergency Work.
Operator will perform all Emergency maintenance and repair of the Facilities consistent
with prudent practices generally followed by the gas pipeline industry under similar
circumstances. Operator will notify Owner of any Emergency condition affecting the
Facilities promptly after Operator learns of such condition and will consult with Owner, as
far as practical, concerning the actions that are necessary. If Owner fails to respond or if
Operator is otherwise unable to consult with Owner, the Operator shall take those actions
that Operator believes are necessary consistent with prudent utility practices and will
contact Owner as soon as possible after the fact.
Operations and Maim` once Agr�mt 4
Natml Gras FaciGdes
CityofFairfaz
John Webster
Owner will notify Operator after Owner learns of any Emergency condition affecting tile
Facilities promptly after Owner learns of such conditions and will consult with Operator,
as far as practical, concerning the actions that are necessary. Operator shall take those
actions that the Operator believes are necessary consistent with prudent utility practices
and will respond promptly to remedy emergency situation.
(d) Scheduling.
To the extent reasonably possible, the performance of repair or maintenance that affects
the operations of the.Facilities shall be scheduled to be perfon-ned only at times acceptable
to Owner. Except for Emergency or unplanned work, :in the event, it, is necessary to either
interrupt or curtail the gas supply or to otherwise impose abnormal operating conditions on
the Facilities, Owner shall be notified in advance and an agreement must be reached as to
the time scheduled for such work.
(e) Work. by Others.
If any.part of the Maintenance is dependent upon the quality and completeness of work.
performed under another contract unrelated to Operator, Operator shall not be responsible
if the work. performed under the other contract is defective or unsuitable and such condition
affects the timing, scheduling or quality of the Operations perfon-ned by Operator
hereunder.
Section 2.2 Personnel.
Operator may employ or, contract for, the services of and be responsible for the supervision of.
Persons (including consultants and professional, service or other organizations) reasonably
required by Operator to perform the Maintenance in an efficient and prudent manner. The number
of Persons used by Operator in conducting the Maintenance, their hours of work and their
compensation for services performed shall be deten-nined by Operator. All employees and other
personnel provided by Operator pursuant to this .Afire ement shall be the employees or independent
contractors of Operator and in no event shall such employees or other personnel be deemed
employees or contractors of Owner. On or before the Commencement Date, Operator shall
Operations and Mint— Ag)—wt
Nat al Gas Facifitim 5
CltyoMirfi
John WNW
designate to Owner in writing a representative who shall be authorized to act on behalf of Operator
as to the Maintenance and with whom Owner may consult at all reasonable times. Operator may
change its representative by written notice to Owner.
Section
2.3 Operator Warranties.
Operator warrants and represents to Owner as follows: Operator shall perform the Maintenance,
and shall require all contractors, subcontractors and materialmen furnishing labor, material or
services for the Maintenance to perform their services and carry out their responsibilities, in a
diligent, safe and efficient manner in accordance with good workmanlike and prudent practices
generally followed by the gas pipeline industry under similar circumstances, but such practices
shall not be less than as may be specifically required by this Agreement. In carrying out such
responsibilities, Operator shall comply, and shall use its reasonable efforts to require all
contractors, subcontractors and materialmen to comply, with all Laws of Governmental
Authorities having jurisdiction. All policies and procedures to be developed by Operator
hereunder shall be available to Owner for its review at Operator's office during normal business
hours.
THESE WARRANTIES ARE EXCLUSIVE AND GIVEN IN LIEU OF ALL OTHER
WARRANTIES WHETHER STATUTORY, EXPRESS, OR IMPLIED (INCLUDING ANY
IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, NONINFRINGEMENT OF THIRD PARTY INTELLECTUAL PROPERTY
RIGHTS, OR ANY WARRANTY ARISING FROM A COURSE OF DEALING, USAGE, OR
TRADE PRACTICE).
Section 2.4 Owner Warranties.
Owner warrants and represents to Operator that the information it supplies to Operator upon which
the Operations may be based is true and correct to the best of Owner's knowledge.
Section 2.5 Fee for Routine Work.
Fees for Routine work are stated in Exhibit "C".
Opaatibns and Maintenance Ag -t
Natural Gas Facilities
CilyorFairf..
John Webster
The Parties shall review the Fees:for Routine Work on an annual basis, starting on February 1,
2012 and on each February D. thereafter, and reserve the right to modify the fees upon mutual
SMEMM
Section 2.6 Compensation for Non Routine Work.
Except for any non -routine expenditure that results from Operator's breach of this Agreement,
negligence, or willful misconduct, Owner shall bear the cost of any direct out of -pocket
expenditure reasonably incurred by Operator for Non Routine Work performed in connection with
the Facilities, including labor and materials, plus Operator's overhead as stated in Exhibit "D". .
Any Non -Routine Work that is in excess of $500.00 per event and that is not the result of an
Emergency, will be reviewed and approved by the Owner in advance, subject to Section 2.1(c).
"Non -Routine Work" is defined in more detail in Exhibit D, attached hereto.
Section. 2.7 Pa nient,
On or before the fifteenth (15 th) day of each calendar month, Operator shall render an
invoice to Owner indicating all fees payable under this Agreement for the preceding
calendar month. Payment is due from Owner on or before the thirty fifth day following
the date the bill is issued by Operator. A late payment charge of one and one-half percent
per month, or the legally authorized maximum interest rate, whichever is lower, shall be
levied on any unpaid balances.,
Section 2.8 Owner Duties.
Owner shall fully cooperate with Operator in performing Maintenance. Owner hereby
grants Operator thenon exclusive right to access and use the FacilitiesJor purposes of and
subject to the terms of this Agreement.
ARTICLE III: TRANSFERS OF RESPONSIBILITIES OF OPERATOR
Transfer of ResDonsibilities.
(a) Upon the expiration of this Agreement or the removal of Operator under Section 7.2, the
Operator shall assign, transfer and deliver to the Person selected by Owner to succeed
Opaafl.ns and Maintenance Agra mt
Nalml Gas Facffitics
City 'Mid..
J.1. wd.[a
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Operator (or to such other Persons as Owner shall direct) (1) possession and control of the
Facilities and all Operations and (2) to the extent requested by Owner, all contracts,
warranties, operating and maintenance manuals, designs, drawings, operational plans,
proprietary information and operational rights obtained or entered into by Operator
exclusively with respect to the Facilities or exclusively in connection with the
Maintenance, in each case without giving rise to any penalty, charge, restriction, lien,
security interest, encumbrance, cancellation, termination, acceleration or change in terms
not previously approved by Owner. Operator shall fully cooperate with Owner in transfer
of Maintenance hereunder to Owner or a successor operator designated by Owner. Upon
termination, Operator shall return to Owner all original records and any materials
purchased by Operator and paid for by Owner, such as pretested pipe, valves and other
miscellaneous materials and supplies.
(b) As soon as practicable after the date on which the Operator is required to transfer its
responsibilities as provided in Article III (a), Owner may conduct an audit and inventory
of the Facilities and all of Owner's assets and properties operated, managed or controlled
by Operator. Such audits and inventory shall be used in the return of and the accounting
for the Facilities and Owner's properties and assets by Operator for the purposes of the
transfer of responsibilities under Article III. All costs and expenses incurred in connection
with such audits and inventory shall be borne by Owner.
ARTICLE IV: INSURANCE
Section 4.1 Owner's Insurance.
Owner shall procure and maintain in full force and effect, at the Owner's cost, all risk property
insurance in an amount equal to the full insurable value of the Facilities.
Section 4.2 O erator's Insurance.
Operator shall procure and maintain in full force and effect at the Operator's cost, the following
insurance coverage:
OpaaUi and]aWintenance Agreeoent
Nw—L Gas Facilities 8
CityofFairfax
John Webster
(a) Worker's Compensation and Employer's Liability insurance in accordance with the laws
of Minnesota with limits for Employer's Liability of $1,500,000 per accident or disease,
aggregate as disease.
(b) Business automobile liability insurance covering owned, non -owned and hired vehicles
with minimum combined single limits for bodily injury and property damage for any single
loss of $2,000,000.
(c) Conunercial general liabilfty insurance with completed operations coverage for claims
alleging bodily injury including death and damage to property of others, with a combined
single limit or $2,000,000 for bodily injury and property damage per occurrence and
$3,000,000 in the aggregate.
(d) Excess liability insurance for claims alleging bodily injury including death and damage to
property with a combined single limit of $5,000,000 for bodily injury and property damage
Baer occurrence andin the aggregate.
Section 4.3 OtherInsurance Reqqi�rqpiqt�.nts.
Each Party shall be listed as an additional insured with respect to the insurance coverage required
under this Article IV. All insurance policies shall be endorsed to provide that all insureds and
additionad insureds hereunder be given thirty (30) days' advance notice of camellation or material
change. Within thirty (30) days of the date of this Agreement, each Party shall furnish to the otber
Party certificates as evidence showing that the insurance policies to be carried in accordance with
this provision have been obtained.
Section 4.4 maxi mumLiability.
Operator's maximum liability is limited to a combined single limit of $1,500,000 by Minnesota
Statute.
AR,r[CLE V: FORCE MAJEURJE
Section 5 . I Performance Excused.,
If any.Party is rendered unable, wholly or in part, by force majeure to carry out its obligations
under this Agreement, other than the obligation to make money payments or to furnish security,
Op—tions and Maintenance Agr—t
Natual Gas Faeffilim
City ofFairfax
Jahn Webster
11
- - ----- ------- ---
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that party shall give to all other parties prompt written notice of the force majeure with reasonably
full particulars concerning it; and thereupon, the obligations of the party giving notice, so far as
they are affected by the force majeure, shall be suspended during, but no longer than, the
continuance of the force majeure. The party claiming force majeure shall notify the other parties
of the force majeure situation within a reasonable time after the occurrence of the facts relied on
and shall keep all parties informed of all significant developments. Such notice shall give
reasonably full particulars of said force majeure, and also estimate the period of time, which said
party will probably require to remedy the force majeure. Force Majeure does not relieve the
operator of the contractual responsibilities to operate the Facilities; provided that, the Facilities
can be operated utilizing reasonable and safe methods. The affected party shall use all reasonable
diligence to remove the force majeure situation as quickly as practicable in an economic manner.
The requirement that any force majeure shall be remedied with all reasonable dispatch, shall not
require the settlement of strikes, lockouts or other labor difficulty by the party involved, contrary
to its wishes; how all such difficulties shall be handled shall be entirely within the discretion of
the party concerned.
,Section 5w.2 Force Majeure Defined.
The term "force majeure", as here employed, shall mean an act of God, strike, lockout or other
industrial disturbance, act of the public enemy, war, blockade, public riot, lightning, fire, storm,
flood, earthquake, explosion, governmental action, governmental delay, restraint or inaction,
unavailability of equipment and any other cause, whether of the kind specifically enumerated
above or otherwise, which is not reasonably within the control of the party claiming suspension.
ARTICLE VI: ASSIGNMENT
Section 6.1 Assio:nnignt b r Owner.
Owner may not assign all or any part of its rights or obligations under this Agreement without
prior written consent of Operator.
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Section 6.2 Assi,nnient by 0 Lerator.
,-
Operator may not assign all or any part of its rights or obligations under this Agreement without
the prior written consent of Owner. Such approvals shall not be unreasonably delayed, withheld
or conditioned.
ARTICLE VII: TERM
Section 7.1 Term.
This Agreement shall become effective on the Commencement Date and shall continue in force
and effect until "Nine a.m. Central Clock Time" on April 1, 2022, and year-to-year thereafter,
subject to termination.
(a) Owner shall notify Operator in writing ninety (90) days prior to the expiration date of this
Agreement as to Owner's desire for Operator to continue maintenance of the Facility.
Operator shall respond in writing to Owner within thirty (30) days of receipt of Owner's
notice and on or before sixty (60) days prior to the expiration of this.Agreement regarding
the Operator's desire to continue as Operator.
Section'7.2 Default and Termin...q.tio..n.,
Upon failure by either Party in. the perfonnance of any provision, condition or requirearent herein,
the other.party may give notice in writing to the defaulting party specifying the default. Unless
such default is cured within thirty (30) days following receipt of such notice to the defaulting Party,
or if such default is susceptible of being cured. and such cure cannot be completed with such thirty
(30) days period, then if the cure thereof is not undertaken promptly upon receipt of such notice
and diligently prosecuted thereafter, this Agreement may be terminated within sixty (60) days of
the date of the notice claiming default was written at the option of the Party serving such notice of
default.
Section 7.3 Effect of Terminatiort.
Tennination of this Agreement shall not relieve either Party from any obligation including
payments due for Operations as provided in this Agreement, accruing to the date of such
Op—fi.. and Nlau.t— Ag—t
Natm [ G. Facffifie
Ckyoffairfax
J.h. Websle
M
termination or relieve any Party of any liability for its breach of this Agreement. Article III shall
survive any termination of this Agreement.
ARTICLE VIII: MISCELLANEOUS
Section 8.1 Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of the State of
Minnesota without reference to the choice or conflict of law, rules or principals thereof which
would refer the matter to the laws of another jurisdiction.
Each Party shall abide by the Laws of any Governmental Authorities with jurisdiction over the
matters of this Agreement, as may be amended from time to time.
Section 8.2 _ Entire A �meement.
This Agreement and the Schedules and Exhibits hereto contain the entire agreement between the
Parties with respect to the subject matter hereof and there are no agreements, understanding,
representations or warranties between the parties other than those set forth or referred to herein.
Section 8.3 Notices.
Except as otherwise specifically provided, all notices authorized or required between the Parties
by any of the provisions of this Agreement, shall be in writing, in English and delivered in person
or by registered mail or by courier service or by any electronic means of transmitting written
communications that provides confirmation of complete transmission, and addressed to such
Parties as designated below. The originating notice given under any provision of this Agreement
shall be deemed delivered only when received by the Party to whom such notice is directed, and
the time for such Party to deliver any notice in response to such originating notice shall run from
the date the originating notice is received. The second or any response notice shall be deemed
delivered when received. "Received", for purposes of this Section with respect to written notice
delivered pursuant to this Agreement, shall be actual delivery of the notice to the address of the
Party to be notified, specified in accordance with this Section. Each Party shall have the right to
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change its address at any time and/or designate that copies of all such notices be directed to another
Person at another address, by giving written notice thereof to all other Parties.
City of Fairfax
18 1" St. SE
Fairfax, MN 5,53 655332
Attention. Nicholas Johnson
City .Administrator
-Mail: Admin@fairfax-mn.gov
Telephone No.: 507-426-7255
llutchinson Utilities Conunission
225 Michigan St. SE
Hutchinson, Minnesota 55350
Attention: John Webster
l -i a:al: jEeC st rj cci.hutchinson.mn.us
"telephone .No.: 320-234-0507
Fax No,: 320-587-4721
Section .4 Successors.�� d ass �rLs.
Subject to the restrictions and requirements on assignment and transfer contained in this
Agreement, this Agreement shall be binding upon and inure to the benefit ol°the Parties.hereto and
their respective successors and assigns.
Section 8.5 mmHeadjl . s.
The headings to Articles, Sections and other subdivision of this Agreement are inserted for
convenience of reference only and will not affect the meaning or interpretation of this Agreement.
Section 8.6 Amendments and. Waivers.
This .Agreement may not be :modified or amended except by an instrument or instruments in
writing, signed by all Parties. Any.Party may, only by an instrument in writing, waive compliance
by another Party hereto with any teri.n or provision of tlni.s .Agree ent on the part of such other
Opa'aHons and Maintenance Agr o t 13
Natmal Gas Facilitim
CityofFairfax
John W6aw
— - — - ------ . . ...........
Parry hereto to be performed or complied with. The waiver by any Party of a breach of any term
or provision of this Agreement shall not be construed as a waiver of any subsequent breach.
Section 8.7 Schedules and Exhibit.
All Schedules and Exhibits to this Agreement are hereby incorporated by reference.
Section 8.8 Agreement for the Parties' Benefit Only.
This Agreement is not intended to confer upon any Person not a party hereto or a permitted
successor or assign of a Party any rights or remedies hereunder, and no Person, other than the
Parties or a permitted successor or assign thereof, is entitled to rely on any covenant or agreement
contained herein.
Section 8.9 Severabilit.
If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced
by any rule of law or public policy, all other conditions and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal substance of the
transactions contemplated hereby is not affected in any adverse manner to any party. Upon such
determination that any term or other provision is invalid, illegal or incapable of being enforced,
the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in an acceptable manner to the end that the transactions
contemplated hereby are fulfilled to the extent possible.
Section 8.10 lnde endent Contractor No Partnershi m .
Operator shall perform its duties and obligations hereunder as an independent contractor, and
nothing contained herein shall be deemed to create a relationship of employer/employee,
master/servant, agency, partnership or joint venture. This Agreement is not intended to create, and
shall not be construed to create, a relationship of partnership or an association for profit between
Operator and Owner.
>. Go FIAW. r 14
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Section8.11 Data Practices Act
The Parties acknowledge that Operator is subject to Minnesota Government DataPractices Act,
Minnesota Statutes, Chapter 13 (the "Act"), including limiting public access to trade secret and
other protected data. Each Party agrees to defend, indemnify, and hold harmless the other Party,
its officials, officers, agents, employees, contractors, and subcontractors from any claims resulting
froin anlawful disclosure and/or use of such protected data. Owner agrees to promptly notify
Operator if Owner receives a request to access the terms of this Agreement, and to cooperate with
Operator if Operator seeks a protective order, at Operator's expense. Owner agrees to promptly
notify Operator if Owner becomes aware of any potential claim, or facts giving rise to potential
claims, under the Act. The to of this section shall survive the termination of this Agreement.,
Section 8.1.2 News Releases.
News releases concerning the .mainLenance or the Facilities shall only be made in accordance with
the following guidelines, subject to the requirements of applicable laws and governmental rules
and regulations -
No public announcement or statement shall be issued by Operator unless prior to its release Owner
has been furnished. with a copy of such statement or announcement and the reasonable approval of
the Owner has been obtained, Where a public announcement or statement becomes necessary or
desirable because or an Emergency as a result of activities arising under this Agreement, Operator
is authorized to issue and make such announcements or statements without prior reasonable
approval of the Owner, but shall Promptly furnish Owner with a copy or the announcement or
statement.
Section 8.13 Authorny-Lo qtg"A-Leement.
Each party to dus Agreement represents and warrants that it has full and complete authority, to
enter into and perforra this Agreement., Each person who executes this Agreement on behalf of
either party represents and warrants that it has full and. complete authority to do so and that such
party will be bound thereby.
Opwations and Maintenance Agr-t
NatmlGasFadHkim 15
City.Mid..
John Webster
. . ............ . . - — — ---------------------
Section 8.14 Alternative Dispute Resolution.
Whenever the Parties disagree on the interpretation or enforcement of this Agreement, or upon
calculations or payments, then upon written request of either Party, representatives with settlement
authority for each Party shall meet in person and confer in good faith to resolve the dispute. If the
Parties are unable to resolve the dispute, they shall submit their dispute to mediation pursuant to
the Minnesota Civil Mediation Act. If the dispute is not resolved by mediation, the Parties may
invoke their legal remedies available at law.
Section 8.15 Counterriarts.
This Agreement may be executed in counterparts, and each executed counterpart shall have the
same force and effect as an original instrument.
ARTICLE IX: LIABILITY; INDEMNITY
Section 9.1 Indemnification by° Owner.
Owner shall defend, protect, indemnify, and hold harmless Operator, and its members, directors,
officers, employees and agents from and against all liability, claims, liens, costs, expenses,
demands, fines or other actions imposed by any Governmental Agency with jurisdiction, suits and
causes of action of every kind and character arising in favor of any third party on account of
personal injuries or death, or damages to property (including without limitation claims for
pollution and environmental damage) in any way directly resulting from the negligent acts or
omissions of the Owner, its agents, employees, representatives, or contractors, or from the failure
of Owner, its agents, employees, representatives, or contractors to perform its obligations under
this Agreement and in compliance with all applicable Laws. This indemnity includes Owner's
agreement to pay all costs of defense, including without limitation attorneys' fees, incurred by any
person or party indemnified herein.
Owner acknowledges that utility equipment malfunction or failure may occur notwithstanding the
inspection, maintenance, and repair work performed hereunder, and hereby indemnifies, releases,
and holds Operator harmless from any claim or liability, and any direct or indirect damages
claimed or actually suffered (including, without limitation, consequential damages and loss of
hk,,
1.1.1--l", . . . . . . ....... ............... ---- ........ . ........... -
profits), resulting frorn any utility equipment malfunction or f4ilure occurnng during the term of
this Agreement, except such claims or liability directly resulting from the negligent acts or
omissions of Operator.
Section 92 Indemnificatio
- — — ---- ---- ----------- ----
n
Subject to Section 2. 1 (c), Operator shall defend, protect, indemnify, and hold harmless Owner,
and its members, directors, officers, employees and agents from and against all liability, claims,
liens, costs, expenses, demands, fines or other actions imposed by any Govcrn. merital.A.gency with
.jurisdiction, suits and causes or action of every kind and character arising in Favor of any third
party on account ofpersonal injuries or death, or damages to property (including without limitation
claims for.pollution and environmental damage) in any way directly resulting from the negligent
acts or omissions of Operator, its agents, employees, representatives, or contractors, or from the
failure of Operator,its agents, employees, representatives, or contractors to perform its obligations
Linder this Agreement and in compliance with all applicable Laws. This inderrmity includes
Operator's agreement to pay all costs of defense, including without limitation attorneys' fees,
incurred by any person or party indemnifiedherein.
Operator agrees that the obligations of indemnification herein include, but are not limited to, liens
by third parties against Owner and its property because of labor, services, materials, or any other
subject of lien, furnished to Operator or its assignees or subcontractors, in connection with any
work performed by Operator hereunder.
Section. 9.3 No ConseLquential,pgiri4gqs
Under no circumstances shall either Party hereto be liable to the other hereunder :for indirect,
special, consequential or similar damages, or for loss of profits.
Operations and Maintenance Agr—nmt 17
Natural Gas FaciNtim
Cfty.Mkfa.
John Webster'
WHEREFORE, the Parties have executed this Agreement in two (2) duplicate originals
by their duly authorized, respective officers, effective as of the date specified above.
HUTCHINSON UTILITIES
COMMISSION
By:
Name:
Title: Commission President
Date: .
Witness:
Date:
Witness:
Date:
Ilry ; h.:_I I M W';.. 1 prcvn''-L
Itim0.—Gm I11"'OlE16.
':ilt anN' V"uiirl;sm
PraVarn''GI/;bFir�x
18
CITY OF FAIRFAX
By:
Nam
Title:
Gtv—
Date:
..........
"'2
Witness:
Date: �,` 0 Z
Witness:
Date:
EXHIBIT "A"
This Exhibit "A" is attached to and made part of that certain Maintenance Agreement — Natural
Gas Facilities (the "Agreement") by and between City of Fairfax ("Owner") and Hutchinson
Utilities Commission ("Operator").
OPERAI I OR'S.PAYML,.N'I'INSTRUCI'IONS-.
For the purpose or this Agreement, Owner shall mare all payments provided in the Agreement to
Operator via Check to the following:
Hutchinson Utilities Commission
225 Michigan St SE
Hutchinson, Minnesota 55350
EXHIBIT "B"
This Exhibit `B" is attached to and made part of that certain Maintenance Agreement ® Natural
Gas Facilities (the "Agreement") by and between City of Fairfax ("Owner") and Hutchinson
Utilities Commission ("Operator").
Owner has constructed (or will construct) and own the natural gas facilities, including all
apparatuses, located at the Fairfax Interconnect station on the Hutchinson Pipeline, the District
Regulator Stations serving the Cities of Fairfax and Gibbon as well as the two Block Valve Sites
located on the Owner's high-pressure transmission/distribution line, appurtenances thereto,
("Facility" or "Facilities") serving City of Fairfax, Fairfax, Minnesota.
Each interconnected third parry natural gas operator shall operate their respective pipeline facilities
connected to the Facilities.
This Exhibit "C" is attached to and made part of that certain Maintenance Agreement — Natural
Gas Facilities (the "Agreement") by and between City uflairfax ("Owner") and Flutchinson
Utilities Commission ("Operator").
ROUTINE WORK
All labor shall be charged at a cost plus 50% of the Operator hourly rate in affect at the time of
the work being perfonned multiplied by the number of hours required by the employee(s) to
complete Maintenance work for Owner.
1[lours required to complete Maintenance includes travel time from Operators' work. center to job
site including return trip to Operator's work. center.
Operator non -overtime rate -- $60/hour
Operator vehiclehourly rate .- $47/hour
All materials shall be charged at a cost plus 10% to cover all inventory and purchasing :Fees.
COMPLETE LIST OF R017HNE ITEMS:
A. Maintenance, Repair and Security
L Perform. routine station meter testing and calibration
1 Maintain, test and repair all station and high-pressure block valves
1 Maintain, test andrepair regulators
4. Maintain and repair station line heater
.Maintain and repair station odorizer
6. Maintain the cleanliness and environmental soundness of the Facilities
T Make mechanical repair
Perforin preventative maintenance
9e Respond to emergency calls during HUC standard work hours (6:30 AM to 5:00PM,
Monday through Friday), except to the extent response to an emergency requires
additional personnel that are not on duty during said emergency and/or additional
outside contractors
B. Legal and.Regamatory Compliance
1. Maintain DOT System records
2. Maintain Training & DOT Operator Qualification Program and records
EXHIBIT "C", continued
3. Maintain Anti -Drug and Alcohol compliance programs
4. Maintain operating procedures, maintenance procedures, and training plans and
procedures to be followed for Maintenance, and ensure procedures and plans are
available for review by Owner in Operator's office during normal business hours
5. Maintain Emergency Response Plan, Operation & Maintenance Manual, and Operator
Qualification Plan, including annual updates
6. Reporting to Owner any notices of violations of any Laws or Permit provisions
7. Otherwise maintain the Facilities' and Operations' ongoing compliance with all Laws
and Permits
C. Monitoring and Testing
1. Witness third party meter calibrations at the request of Owner.
2. Perform monthly odorization monitoring
3. Maintain proper documentation on all inspections, tests and calibrations
D. Other
1. Maintain in force and effect, and require all contractors (and their subcontractors)
performing services for the benefit of Owner to maintain in force and effect, insurance
of the types and in the amounts specified by Owner.
2. Undertake all reasonable efforts to keep the Facilities, all contracts relating to the
Maintenance, and all property and rights of Owner free and clear of any and all liens,
encumbrances, security interests, charges, claims and restrictions arising out of or on
account of the Operations
3. Maintain 24-hour emergency telephone number
4. Procure and furnish all equipment, services, supplies, labor and supervision necessary
to carry out Operator's responsibilities under this Agreement.
EXHIBIT "D"
This Exhibit "D" is attached to and made part Gaff` that certain Maintenance Agreement — Natural
Gas Facilities (the "Agreement") by and between City of Fairfax ("Owner") and 1-tutchinson
Utilities Commission ("Operator").
NON -ROUTINE WORK
EXAMPLE OF NON -ROUTINE ITEMS: Expense
L After -hours, holidays, weekends emergency response Cost + 80%
2. Additional personnel as my be required
during emergencies Cost -1 80%
3. Additional contractors as may be required
during emergencies Cost + 50%
4. Any and all other items relevant to the
:metering andregulation facility operation and
maintenance that arc neither listed above
nor included:inn the, attached Exhibit C. Cost + 50%
** "Expense", as referenced above, shall be the cost of materials, equipment and third -
party labor to complete the applicable work or project. Operator shall. invoice such cost plus
listed overhead. In addition, thereto, Operator shall charge $60.00 per man-hour for non -
overtime work.. All vehicles and equipment shall be charged by the amount reflected in the
following table. Alllabor shall be billed at the appropriate hourly rate; straight time, time and
one-half or double time dependent on time of day and day of week work was required.
EXHIBIT "D", continued
Labor_and_E uipment.Ratesm ermHour).
AIR COMPRESSOR $42.00
___.�........._..._........._........................ .._
WELDER $52.00
BACKHOE $80.00
�......
VEHICLE $47.00
OPERATOR $60.00
HUTCHINSON UTILITIES COMMISSION�1`
Board Action Form
�rMturscti
mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm
Agenda Item: CE Power Plant 2 substation improvements
Presenter: Jeremy/Dave
Agenda Item Type:
Time Requested (Minutes): 5
New Business
Attachments,: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
Due to the Plant 2 substation transformer fire, we needed to upgrade the site to
accommodate the new transformers and switchgear. The Commission approved CIE
Power to do the engineering and to provide the required technical labor, supervision,
basic equipment, materials, and engineering to perform the scope of work of the new
substation transformer pad and site work back in July 2020.
We would like to approve Requisition 8694 for CIE Power to provide the required
technical labor, supervision, basic equipment, materials, and engineering to perform the
scope of work. The total is a "Not to exceed" total as there needed to be some
assumptions made for MPCA disposal costs for the oil spill clean up and testing.
Due to certain aspects of the substation site improvement, material delivery times, and
winter construction issues, Staff is recommending approval of the total requisition rather
than bring each progress invoice to the commission for individual approval.
In January the commission did approve a $35,000.00 payment to CIE Power for the work
that was completed in December 2020 leaving $102,197.50 remaining.
BOARD ACTION REQUESTED:
Approve Requisition 8694 totaling $137,197.50
Fiscal Impact: $137,197.50
Included in current budget: Yes Budget Change: No
PROJECT SECTION:
Total Project Cost: Remaining Cost:
HUTCHINSON
UTILITIES
ra,�itiaa° oni'initIIIEwasrioI'll
CE POWER
PURCHASE REQUISITION
HUTCHINSON UTILITIES COMMISSION
225 MICHIGAN ST SE
HUTCHINSON, MN 55350
Phone:320-587-4746 Fax:320-587-4721
ATTN: JAMIE FOSTER
920075TH AVE NORTH SUITE 100
MINNEAPOLIS, MN 55428
Note
Description:
Plant 2 substation site work
Date
Requisition No.
03/18/2021
008694
Required by:
Requested by:
dhunstad
Item
No.
part No.
Description
Qty
Unit
Due Date
Unit Price
Ext. Amount
PLANT 2 SITE WORK -
MFG. PART:
1
1.00
EA
$137,197.500
$137,197.50
Total: 137,197.50
Date Printed: 03/18/2021 Requisitioned By: dhunstad Page: 1/1
March 5, 2021
Hutchinson Utilities Commission
255 Michigan Street SE
Hutchinson, MN 55350
Attention: Dave Hunstad
Subject: 837834 Substation Improvement
Dear Dave,
CE Power appreciates this opportunity to be of service to Hutchinson Utilities Commission. You can
be assured that our crews will work safely to provide you with a quality project. CE Power has been
a proven leader in electrical testing, commissioning, construction, and engineering services. Our
qualifications include:
➢ 24/7 Emergency service
➢ Highly skilled employees including NETA Certified technicians, Professional Engineers, Field
Engineers, Project Managers, and Master and Journeymen Electricians
➢ Large local crews with access to a vast network of talent and resources to support large and
turnkey projects with minimal down time.
➢ State-of-the-art specialized testing equipment
➢ Continuous training and professional development at all levels of the organization
We appreciate the opportunity to work with you on this project. If you have any questions or
concerns, please contact me at 218-242-2308 or jamie.foster@cepower.net
Sincerely,
Jamie Foster
Account Manager
Page 1 of 7
Project Summary:
Plant 2 Substation Improvements
Work Scope:
CE Power (CEP) will provide the required technical labor, supervision, basic equipment, consumable
materials, and engineering services to perform the following scope of work:
Demo & remove existing generator pads per sf.
Excavate unsuitable material for new pad construction as per soils report provided per cy.
Furnish and install granular fill as per soils report per cy(ly)
Furnish and install concrete transformer pad as per drawing.
Furnish and install 1.5" Yard Rock per ton (estimated quantity)
Excavate and dispose of contaminated soil at a licensed landfill per cy.
Furnish and install granular fill to replace contaminated soil per cy(ly)
XR-5, 40 mil geomembrane liner and geotextile mat installed as per drawing.
Build berm as per drawing.
Ground thawing and winter conditions.
Equipment Scope:
N/A
Notes and Clarifications:
1. CE Power is committed to a safe work environment for our personnel and in maintaining
our industry leading safety record. In support of this effort, CE Power will "Move at the
Speed of Safety". If site conditions are less than ideal, requiring additional time and effort
to meet typical safety standards, CE Power reserves the right to pass on any delay costs to
the customer.
2. This proposal includes labor, basic test equipment, and a written test report.
3. Sales tax is not included in this proposal but will be added to all applicable invoices. If this
project is tax exempt, please submit applicable tax-exempt certificate with purchase order
or order acknowledgement upon award of the project.
4. Any equipment found defective during inspection or testing will be brought to your
immediate attention. Any recommended repairs will require written authorization prior to
being performed. This work will be charged per CE Power applicable rates.
5. If this proposal covers troubleshooting it does not guarantee that the equipment will be
repaired. CE Power will attempt to repair the device to the best of its ability. Additional cost
will be incurred if parts and/or labor beyond that which has been initially specified is required.
CE Power Proposal «Opportunities_name»
Page 2 of 7
6. Testing and/or abatement of hazardous materials, including but not limited to asbestos and
lead paint, are not included in this proposal unless explicitly stated otherwise.
7. Any delays experienced on site, not caused by CE Power, such as inclement weather, de-
energizing/energizing equipment for the outage, equipment malfunction, coordination
between trade(s), etc. may be subject to additional charges.
8. Notice of delays or change orders will be brought to your attention before costs are
incurred. The customer must provide written authorization to proceed with any additional
work.
9. Utility switching fees and/or wiring permit fees, if any, are not included in this proposal and
will be additional to the base contract price.
10. A charge will apply if work is cancelled within 48 hours of the scheduled date.
Hutchinson Utilities Responsibilities
1. Clear and free access to the work location and parking for required vehicles.
2. Provide adequate site conditions clear from mud, snow, and ice, as required. This includes
removal of debris, snow, or other obstructions for clear and safe access.
Project Schedule:
Proposal is based on the following preliminary schedule: lam till 3:30pm
1 The pricing is based on work being performed during normal working hours, Monday through
Friday, 7AM-3:30PM. Work after normal working hours, Saturdays, Sundays, and Holidays is
not included.
2 Any specific schedule or time frame offered for accomplishing the scope of work in this
proposal is subject to prior sale and the availability of CE Power resources. The schedule for
performance of this work scope must be confirmed with CE Power at the time of order
placement.
Project Pricing:
CE Power is proposing to complete the Work Scope listed above for the following amount:
Mobilization — Qty- 3 Cost is............................................................................ $ 1050.00
Demo & remove existing generator pads per sf.-Qty- 128 Cost is ............. $ 2580.00
Excavate unsuitable material for new pad construction as per soils report provided per cy-Qty- 155
Costis................................................................................................................... $ 5512.00
Furnish and install granular fill as per soils report per cy(ly) Qty -240 Cost is ....... $ 8580.00
CE Power Proposal «Opportunities_name»
Page 3 of 7
Furnish and install concrete transformer pad as per drawing. Qty -1 Cost is....... $ 43,775.00
Furnish and install 1.5" Yard Rock per ton (estimated quantity) Qty- 55 Cost is... $ 4072.50
Excavate and dispose of contaminated soil at a licensed landfill per cy. Qty -30 Cost is... $ 5325.00
Furnish and install granular fill to replace contaminated soil per cy(ly) Qty-42 Cost is .... $ 1212.00
XR-5, 40 mil geomembrane liner and geotextile mat installed as per drawing. Qty-1 Cost is...
........................................................................................................................................... $ 47,750.00
Build berm as per drawing. Qty 1 Cost is.................................................................... $ 7515.50
Ground thawing and winter conditions. Qty 1 Cost is .............................................. $ 8625.50
Surveyingcost is............................................................................................................. $ 1200.00
Bid excludes: Permits, erosion control, seeding/sodding, engineering/testing services, survey, &
bond. We will need exact location of conduit risers provided. Fusion welding of the liner requires
temperature to be 25 degrees F or above.
Cost for the above substation improvements SOW is $137,197.50
Terms:
Standard CE Power Terms and Conditions apply
Terms: Progress billing per month
Freight: Prepay and Add
FOB: Factory
Shipment: 30ARO
This proposal is valid for 15 days
Invoicing is net 30 days
Proposal Acceptance Information
Upon acceptance of this proposal, please send contract/purchase order to:
CE Power
Email: jamie.foster@cepower.net
CE Power Proposal «Opportunities_name»
Page 4 of 7
This proposal is considered proprietary in nature, intended for the sole use of the entity addressed above, and as
such is not intended for general public distribution.
CE Power Proposal «Opportunities_name»
Page 5 of 7
Standard Terms and Conditions of Sale
Unless a separate agreement on terms and conditions exist
Purchaser may cancel this contract upon written notice and upon
between the Company and the Purchaser, the following terms
payment to Company of reasonable and proper cancellation
and conditions shall apply to all sales by CE Power Holdings,
Inc., its affiliates, including CE Power Solutions, LLC, Utilities
charges; including but not limited to charges for engineering, testing
repair, upgrade and installation work completed, and for materials
Plus Electrical Services Inc., CE Power Engineered Services,
on order / in manufacture / in storage and lost profits.
LLC (dba CE Power, 3C Electrical, PGTI, Hope Engineering,
If the financial condition of Purchaser at any time does not, in
Reuter & Hanney, Inc.) (collectively, hereinafterthe "Company)
the judgment of Company, justify continuance of the work to be
performed hereunder on the terms of payment agreed upon,
1. Terms of Payment - Terms are net cash due 30 day from the date
Company may require full or partial payment in advance or shall be
of invoice. If payment is not made within the 30 days of invoice date,
entitled to cancel the Contract and shall receive reimbursement for
a late payment charge of 1 1/2% per month will be imposed on the
its reasonable and proper cancellation charges. In the event of
unpaid balance. With respect to goods purchased, pro rata
bankruptcy or insolvency of Purchaser or in the event any
payments shall become due as partial shipments are made. When
shipments are delayed by the Purchaser, payment shall become
proceeding is brought against the Purchaser, voluntarily or
involuntaril , underthe bankruptcy or any insolvency laws, Company
due from the date the Company is prepared to make shipment.
shall be entitled to cancel the Contract at any time during the period
Goods which at Purchasers request (i) are held for delayed
allowed for filing claims against the estate and shall receive
shipment or (ii) are placed in off -site storage, will be invoiced as if
reimbursement for its reasonable and proper cancellation charges.
shipped when originally scheduled and will be held and stored at
the risk and expense of the Purchaser.
Company's rights under this paragraph are in addition to all rights
available to it at law or in equity.
2. Payment If, in the the Company, the financial
9. Limitation of Liability - The Company will not accept any penalty
liquidated damage kind, liability from
- sole opinion of
condition of the Purchaser at the time the equipment is read
for shipment does not justify the terms of payment specifiedy
or clauses of any or any arising
such clauses, unless specifically approved in writing by a duly
authorized representative of the Company. The Company will not be
then as a condition of shipment, Company may require (i) that
the Purchaser
liable for any indirect, special, consequential, or punitive damages
lost loss business lost
provide adequate assurances OT payment or (ii)
(including profits, of use, interruption,
payment terms satisfactory to the Company, in its sole
productivity,loss of communications) arising out of or relating to this
discretion.
purchase whether for breach of contract, breach of warranty, tort,
3.Quotations -
days
negligence, or other form of action) and irrespective of whether
a. Quotations are void unless accepted within thirty (30)
from the date thereof, the
Company has been advised of the possibility of any such damage.
In the Company's liability the the
unless otherwise stated and, in
no event will exceed price
meantime, are subject to change or withdrawal upon notice.
Purchaser paid to the Company for the specific Goods or Services
Orders made thereon are not binding until and unless
accepted by the Company. Shipping dates are approximate
and based upon prompt receipt of all necessary information
provided by the Company giving rise to the claim or cause of action.
10. Damage and Loss Claims. The Company shall not be
responsible for loss, shortage, or damage after receipt of"in good
and approved drawings whenever required. Stenographic and
order" receipts from the transportation company. The Company s
clerical errors are subject to correction.
responsibility for loss, shortage, or damage ceases with the
b. "Unless otherwise specified in writing all quotes are on a
delivery to a common carrier, at which time title and risk of loss
straight time basis, excluding work on Saturdays, Sundays and
Holidays."
pass to the purchaser, and all claims for loss, shortage, damage,
or delay must be made to the carrier by the Purchaser. Concealed
4. Changes, Deletions and Extra Work: Purchaser, without
damage claims must be reported to the carrier within 15 days from
invalidating the Contract, may order extra work scope and make
changes in altering, addition to or deducting from the work, the
the date of delivery. The Company will reasonably assist the
Purchaser in securing satisfactory adjustment of any claims.
Contract sum being adjusted accordingly. All such work shall be
executed under the conditions of this Contract except that any
claim for extension of time caused thereby shall be adjusted at the
11.Warranty
a. The Companywarrants that the (i) oods shall be as provided
by the specifcations provided by lurchaser and new (unless
time of ordering such change.
The value of any such extra work or change shall be
otherwise directed or permitted), and if new, without apparent
damage or defect, (ii) services will be performed in accordance
determined in one or more of the following ways:
with the specifications provided by Purchaser and performed in
(a) by estimate and acceptance of lump sum.
a workmanlike manner. In the event Purchaser notifies
(e) by unit prices named in the Contract or subsequently
agreed upon.
Company of defective materials or workmanship within the
lesser of eighteen (18) calendar months from shipment of
(C) by cost and percentage of cost or by cost and a fixed fee.
materials or completion of the work, or twelve (12) calendar
5. Minimum Billing Charge - The minimum billing charge will be
$100.00.
months from installation of the goods, the Company will, (i) at
its option either repair or replace defective new materials, and
6. Delivery - Unless otherwise specified, all products are delivered
correct the defective workmanship free of charge. Repairs or
f.o.b. point of shipment regardless of transportation costs being
"allowed", "pre
warranty work will be performed f.o.b. factory or at a
-paid", or, collect".
7. Shipment Delays - The Company shall not be liable for delays in
Purchaser's site, at the Company s option.
b. Whenever work is performed of Purchaser's site, it will be
starting work or in shipment or non -shipment due to causes beyond
it's reasonable control or due to acts of God, acts of the Purchaser,
performed during a normal eight -hour straight -time day. If the
Purchaser requests that warranty work be
fires, strikes, labor disturbances, floods, epidemics, quarantine
restrictions, war, insurrections or riot, civil or military authority,
product performed
during any other time period, Purchaser will be invoiced for
the premium portion of the work; i.e. the difference between
compliance with priority orders or preference ratings issued by the
the applicable rate and the overtime rate for the services
Government, freight embargo's, car shortages, wrecks or delays in
transportation, unusually severe weather, or inability to obtain
necessary labor, materials or manufacturing facilities due to such
performed.
c. This warranty does not apply to, nor is any expense or other
causes or any of them. In the event of any such delay, the date of
damages or liability assumed for, any goods are used, which
shipment will be extended, at the minimum, for a period equal to the
have been improperly stored, or installed, or from any
Ferod of the delay. The contract of sale will in no event be subject
o cancellation by the Purchaser, whether due to delay in delivery
accidental or intentional attempts to operate the goods in
excess of their rating, or in an abnormal atmosphere or
environments, or to which unauthorized repairs have been
or to any other cause, except by mutual agreement, nor shall the
made whether or not such goods are defective or in accord
Company be liable under any circumstances for special or
consequential damages on any account of delay.
with the specifications. Any such repairs or modifications
must be authorized by the Company in writing.
8. Suspension/Cancellation: In the event Purchaser requests a
suspension of work under this Contract, Purchaser shall, in it ing,
d. This warranty does not apply to, nor is any expense or other
notify Company reasonably in advance of the suspension date; this
damages or liability assumed for work performed on serviced
notification will indicate the anticipated suspension period.
equipment that has been subsequently serviced by another
Company shall advise Purchaser of the price adjustment resulting
from the planned suspension of the work. The adjustment will
firm without authorization by the Company in writing.
price
be based on Company's ability to reasonably relocate manpower,
12 E ui ment and Materials of Others -The Company's
9 p
and any materials, and equipment during the suspension period.
responsibility does not extend to equipment not manufactured
Remobilization costs will be priced on the same basis.
by the Company. The Company will reasonably assist
Purchaser in making claims under any warranty provided by the
supplier or manufacturer of such equipment.
a. The Company's responsibility does not extend to used
equipment supplied in any other than "fully reconditioned"
state.
b. THE FORGOING WARRANTY IS EXCLUSIVE AND
EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES
(EXCEPT TITLE , WHETHER EXPRESS OR IMPLIED,
INCLUDING HE IMPLIED WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE. THE FORGOING REMEDIES OF REPAIR OR
REPLACEMENT SHALL CONSTITUTE THE SOLE REMEDY
OF THE PURCHASER AND SOLE LIABILITY OF THE
COMPANY FOR ANY BREACH OF WARRANTY.
13.Nuclear Insurance — Indemnity - For applications in
nuclear projects, the Purchaser/Owner shall have a complete and
proper insurance protection against liability and property damage
resulting from a nuclear incident and shall indemnify the Company,
its suppliers and subcontractors against all claims resulting from a
nuclear incident.
14.Returned Goods - No goods shall be returned without the
Purchaser having secured approval
and terms of return from the Company. The return of all goods
including returnable shipping materials such as cable reels, end
plates or covers, oil drums, gas bottles, etc. will not be permitted
under any condition without the Company's properly executed
Returned Goods Authorization Form. Goods returned without
complete identification in accordance with the Company's
instructions or without charges prepaid will not be accepted. The
Company reserves the right to refuse any goods returned for credit.
15. Termination - After acceptance by the Company, an order shall not
be terminated, in whole or part by the Purchaser except by
agreement in writing from the Company and such agreement will be
contingent upon payment of reasonable charges based upon
expenses already incurred and commitments made by the Company
plus a charge of 10% of the contract rice to compensate the
Company for indirect costs resulting from the termination.
16. Rescheduling - Rescheduling of an order by the Purchaser shall
require agreement in writing from the Company and renegotiation of
the price and escalation terms to reasonable cover additional costs
and commitments occasioned by the change. Delivery commitments
made by the Company are based upon complete specifications
and/or information supplied by the Purchaser with the order and
upon prompt return of approval drawings (if required by the
Purchaser) by the date requested by the Company. Rescheduling of
any order by the Company as a result of the Purchaser's delay in
returning ap roval drawings shall require renegotiation of price and
escalation �erms to reasonably cover additional costs and
commitments occasioned by the delay.
17.Drawing Approval and Changes - If at drawing approval the
Company has failed to design the product in accordance with the
Purchaser's specification, the Company will, at its expense, make
appropriate changes. Where Purchaser's specifications are not
definitive the Company reserves the right to design the product in
line with, in the Company's j.udgment good engineering practice. If
at drawingg approval, the Purchaser makes changes outside the
pe scoof fhe design as covered in Purchaser's specifications, the
price and delivery terms shall be renegotiated to reasonably cover
any additional cost and commitments occasioned by the change.
Changes made to an order by the Purchaser after engineering is
completed or entry of the order into manufacturing will result in
substantially greater costs and delivery delays.
18. Taxes - Prices quoted are exclusive of any present or future federal
or state taxes or local sales, use or excise taxes. If any such present
or future sales, use or excise taxes apply, then they will be added to
the invoice as a separate item unless Purchaser has furnished an
acceptable tax exemption certificate from such tax prior to shipment.
19.General - Company shall not be responsible for the acts and
workmanship of the employees, contractors, subcontractors or
agents of the Purchaser. The Company reserves the right to
subcontract any of the work to one or more subcontractors.
The delegation or assignment by Purchaser of any or all of its
duties or rights hereunder without Company's prior written consent
shall be void.
The rights and obligations of the parties under this Contract
shall be interpreted and governed in all respects by the laws of the
state of Ohio. If either party brings against the other party any
proceeding arising out of this agreement, that party may bring that
proceeding only in the United States District Court for the Southern
District of Ohio or, only if there is no federal subject matter
jurisdiction, in Hamilton County Court of Common Pleas, Cincinnati,
Ohio.
Any information, suggestions or ideas transmitted by
Purchaser to Company in connection with performance hereunder
are not to be regarded as secret or submitted in confidence except
as may be otherwise provided in a writing signed by a duly
authorized representative of Purchaser.
Company shall comply with all state and federal safety and health
laws, including but not limited to the Occupational Safety and Health
Act of 1970 (OSHA) and all standards, rules, regulations and orders
issued pursuant to such state and federal safety and health laws
and laws related to non -segregated facilities and equal employment
opportunity.
This Contract contains the complete agreement between the
parties and no modification amendment, revision, waiver or other
change will be binding on Company unless assented to in writing by
Company's authorized representative. Any oral or written
representation, warranty, course of dealing or trade usage not
contained or referenced herein will not be binding on Company.
Purchaser shall obtain and pay for all necessary permits for the work
to be done and shall hold company harmless from any liability for
work done without said permits.
C11-2:459754 v3
Revised February 6, 2018
INITIALS: COMPANY
PURCHASER