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03-30-2022 HUCCPHUTCHINSON UTILITIES COMMISSION AGENDA REGULAR MEETING March 30, 2022 3:00 p.m. 1. CONFLICT OF INTEREST 2. APPROVE CONSENT AGENDA a. Approve Minutes b. Ratify Payment of Bills 3. APPROVE 2021 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 i. Deferred Compensation ii. Purchasing Policy 8. UNFINISHED BUSINESS 9. NEW BUSINESS a. Approve Requisition #009080 — 2022 Residential Meters b. Approve Requisition #009087 — Plant 1 Elevator Upgrades C. Approve Requisition #009088 - Charge Point DC Fast Charging Station d. Approve Natural Gas Facilities Maintenance Agreement- City of Fairfax e. Request to sell 5MVA Transformer for Generator #3 10. ADJOURN MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, February 23, 2022 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; GM Jeremy Carter; Attorney Marc Sebora Absent: Commissioner Robert Wendorff; Commissioner Kathy Silvernale 1. Conflict of Interest 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Martinez, second by Commissioner Hanson to approve the Consent Agenda. Motion carried unanimously. 3. Approve Financial Statements Mr. Martig presented the Financial Statements. Statements are similar to last year. Both Electric and Natural Gas Division customer revenues increased but was offset by the increase in expenses; which were due to the colder weather. GM Carter went back and reviewed the December 2021 HUC targets and made adjustments to be more in line with the 2022 budget. Discussion was held on the comparison to peer groups and how HUC is trending to others in the industry. A Cost of Service Study will be held this yearwhich will include looking at the current glide paths and considering any adjustments that will need to be made. Motion by Commissioner Hanson, second by Commissioner Martinez to approve the financial statements. Motion carried unanimously. 4. Open Forum 5. Communication a. City Administrator —Matthew Jaunich — i. Nothing to Report b. Divisions i. Dan Lang, Engineering Services Manager — Nothing to report ii. Dave Hunstad, Electric Transmission/Distribution Manager — Nothing to report iii. Mike Gabrielson, Production Manager — 1 1. Working with Evap Tech on Cooling Tower at Plant 1 to determine if any structural repairs need to be done. Once information is received may need to go out for public bid. 2. Will be working on pricing to retube auxiliary boiler at Plant 2 3. CAT has been here for last 2 days, testing on 6 & 7 engines. Engines will need to run for 1000 and then test oil consumption. iv. John Webster, Natural Gas Division Director — Absent v. Jared Martig, Financial Manager - Nothing to report c. Human Resources — Brenda Ewing/Angie Radke - i. Nothing to Report d. Legal — Marc Sebora — i. Nothing to Report e. General Manager — Jeremy Carter i. May have some redistricting with the latest numbers coming out from the State; which may create a change in the local representatives. Commissioner Hanson inquired about the additional graphs that were included in the financials. Mr. Lang reviewed the graphs along with speaking to the Load Duration Curve and Base Load Contracts. 6. Policies a. Review Policies i. Section 2 of Exempt Handbook ii. Section 2 of Non -Exempt Handbook No changes recommended at this time. b. Approve Changes i. After Hours Reconnection Policy- Mr. Martig noted since Meter Staff is working until 5pm this time adjustment will allow extra time for customers to pay. Motion by Commissioner Hanson, second by Commissioner Martinez to approve the After Hours Reconnection Policy. Motion carried unanimously. 7. Unfinished Business 8. New Business a. Review 2021 Annual Distributed Generation Mr. Hunstad presented the 2021 Annual Distributed Generation Resources Annual Report information. The report tracks the power generated from the solar systems that are 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 2 present this report to HUC's governing board. Each year this needs to be reviewed. HUC has 12 systems total for 2021. No applications for 2022 have been received. b. Approve Cogeneration and Small Power Production Annual Tariff Filing Mr. Hunstad presented the Approval of Cogeneration and Small Power Production Annual Tariff Filing. Municipal Utilities annually shall file for review and approval of a cogeneration and small power production tariff with the governing body. Mr. Hunstad reviewed Schedules 1: For facilities of 40KW or less and Schedule 4: for facilities 40KW — 100KW. Motion by Commissioner Martinez, second by Commissioner Hanson to Approve Cogeneration and Small Power Production Annual Tariff Filing. Motion carried unanimously. c. 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, 2022 at 9 A.M. This agreement provides transportation rights to 3M on Hutchinson's facilities from March 1, 2022 at 9.00 A.M. through March 1, 2023 at 9.00 A.M. This agreement is identical to the 2021. All fees are in alignment with the rate realignment structure proposed by the Commission for this customer. GM Carter noted based on Cost of Service Study that will be done later in the year, this may change in the future. Motion by Commissioner Hanson, second by Commissioner Martinez to Approve 3M's Natural Gas Transportation and Daily Swing Supply Agreement. Motion carried unanimously. d. Approve Req# 009022 — Air Stack Emission Testing Plant 1 & 2 Mr. Gabrielson presented the approval of Req# 009022 — Air Stack Emission Testing Plant 1 & 2. Every 2-5 years HUC needs to perform testing on the exhaust stacks at both plant 1 & 2 for the air permit. This year all the units are due in April. Total of Compliance Testing at Plant 1 and Compliance and PS Testing at Plant 2 are $39,600.00. A motion by Commissioner Martinez, second by Commissioner Hanson to Approve Req# 009022 — Air Stack Emission Testing Plant 1 & 2. Motion carried unanimously. 3 e. Approve Req# 008997- Unit 1 LM6000 Fuel Nozzles Mr. Gabrielson presented the approval of Req# 008997 — Unit 1 LM6000 Fuel Nozzles. Every year 10 fuel nozzles are removed from Unit 1 and are sent for inspection. Following the cleaning, inspection, and testing it is then determined what repairs need to be completed. This year all 10 fuel nozzles need major overhaul. A motion by Commissioner Hanson, second by Commissioner Martinez Approve Req# 008997 — Unit 1 LM6000 Fuel Nozzles. Motion carried unanimously. f. Rescind Advertisement for Bid: In -Line Inspection of 12" Lateral Natural Gas Pipeline GM Carter presented the rescinding of Advertisement for Bid: In -Line Inspection of 12" Lateral Natural Gas Pipeline. Originally Staff went out for quotes, however the quotes suggested that Bids would be needed. Based on the 2 bids received at the Feb 14 Bid Opening, both were well under the $175K and 1 of the bids did not have all the required documentation. Knowing the cost of the project will be under the $175K, Staff would like to go out for quotes for this project instead and by doing so may receive additional interest in the project. May need to have special meeting within the next two weeks to approve a quote. A motion by Commissioner Martinez, second by Commissioner Hanson to Rescind Advertisement for Bid: In -Line Inspection of 12" Lateral Natural Gas Pipeline. Motion carried unanimously. g. Approve Req# 008920 — City of Hutchinson LED Street Light Conversion Mr. Hunstad presented Approval of Req# 008920 — City of Hutchinson LED Street Light Conversion. During the 2021 Strategic Planning process Commissioners and Staff agreed to fund materials and labor for the City of Hutchinson 8-year LED Street Light Conversion Project. HUC will purchase and install an average of 275 LED fixtures per year. Requisition #008920 is for the first year of LED fixtures that are scheduled for delivery in March. This is looking to be a 5-6 Year plan. A motion by Commissioner Hanson, second by Commissioner Martinez to Approve Req# 008920 — City of Hutchinson LED Street Light Conversion. Motion carried unanimously. 12 9. Adjourn There being no further business, a motion by Commissioner Martinez, second by Commissioner Hanson to adjourn the meeting at 3:25p.m. Motion carried unanimously. ATTEST: Matt Cheney, President 5 Don Martinez, Secretary MINUTES Special Meeting — Hutchinson Utilities Commission Friday, March 11, 2022 Call to order — 7:30 a.m. President Matt Cheney called the meeting to order. Members present: President Matt Cheney; Vice President Anthony Hanson; Secretary Don Martinez; Commissioner Robert Wendorff; GM Jeremy Carter; Attorney Marc Sebora Absent: Commissioner Kathy Silvernale Others Present: John Webster, Angie Radke The purpose of the special meeting is to Approve a quote for the In -Line Inspection of 12" Lateral Natural Gas Pipeline. Mr. Webster recapped the requirement that is needed to perform an in -line inspection of Hutchinson Utilities' 12" lateral natural gas pipeline due to the discovery of a high consequence area in 2021. Project includes running of pipeline cleaning, sizing pigs and final running of the smart pig that is configured for the determination, deformation and magnetic flux. Following the smart pig run, data will be analyzed and two confirmatory digs will be conducted. This will need to be completed every 7 years. All 5 quotes received are highly qualified. Onstream is the lowest quote, however a lot of the responsibility is shifted to HUC; pipeline cleaning and gauging pigs to be completed by HUC or to hire a third -party contractor. Staff is looking to Award the bid to TDW (US), Inc; this company has been in the business for a long time and all work is performed by TDW (US), Inc., no third -party contractors are involved. Discussion was held on the contractors that submitted quotes, if third -party contractors are involved and if any issues are expected. A motion by Commissioner Hanson, second by Commissioner Wendorff to Approve Req# 009048 to TDW (US), Inc. for the In -Line Inspection of HUC's 12" Pipeline Lateral Natural Gas Pipeline. Motion carried unanimously. There being no further business, a motion by Commissioner Martinez, second by Commissioner Wendorff to adjourn the meeting at 7:40a.m. Motion carried unanimously. ATTEST: Matt Cheney, President Don Martinez, Secretary 03/23/2022 03:09 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 1/39 User: JMartig CHECK DATE FROM 02/18/2022 - 03/23/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 1 ELECTRIC 02/18/2022 GEN 1001(E)*4 BP CANANDA ENERGY SOLUTIONS GENERATOR 41 NATURAL GAS 401-547- 01 484.45 Generator 41 Aux Boiler 401-547- 01 42.55 GENERATOR 45 NATURAL GAS 401-547- 01 74.53 GENERATOR 45 NATURAL GAS 401-547- 01 32,249. 66 GENERATOR 46 NATURAL GAS 401-547- 01 90.83 GENERATOR 46 NATURAL GAS 401-547- 01 39,391.07 Generator 47 Natural Gas 401-547- 01 90.83 Generator 47 Natural Gas 401-547- 01 52,044.82 Generator 49 Natural Gas 401-547- 01 232.91 Utility Expenses - Water/Waste 401-930- 08 4,628.45 HECK GEN 1001(E) TOTAL FOR FUND 1: 129,330.10 02/22/2022 GEN 1021(E) MISO Deferred Energy Cost - Miso 174-000- 00 20,884.73 02/22/2022 GEN 1028(E) MISO Deferred Energy Cost - Miso 174-000- 00 339.60 02/22/2022 GEN 995(E) MRES Purchased Power 401-555- 02 996,334.23 02/23/2022 GEN 1009(E)* MINNESOTA REVENUE STATE SALES TAX 242-000- 00 62,323.00 City Sales Tax 242-000- 00 4,504.00 COUNTY SALES TAX 242-000- 00 4, 504.00 HECK GEN 1009(E) TOTAL FOR FUND 1: 71,331.00 02/23/2022 GEN 75866*4 ACE HARDWARE Sales Tax Receivable - Replace 186-000- 00 2.89 Supplies 401-550- 01 44.86 Accessory Plant - Materials 402-554- 01 41.97 Maintenance Other - Materials 402-554- 01 11.61 Maintenance Other - Materials 402-554- 01 21.36 Materials 401-588- 02 87.98 Materials 401-588- 02 (3.41) Grounds - Materials 401-935- 08 10.15 HECK GEN 75866 TOTAL FOR FUND 1: 217.41 02/23/2022 GEN 75867* ADMI DEP REFUND/APPLIED 235-000- 00 1,625.00 02/23/2022 GEN 758684 AERODERIVATIVE GAS TURBINE GASKET, FUEL NOZZLE 154-000- 00 1,800.00 FREIGHT 401-588- 02 18.52 HECK GEN 75868 TOTAL FOR FUND 1: 1,818.52 02/23/2022 GEN 758694 AIRGAS NORTH CENTRAL AQUA -AMMONIA, 19% NH3 154-000- 00 9,727.80 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee Fund: 1 ELECTRIC CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Description 02/23/2022 GEN 75870 ALAYNA BUGGS 02/23/2022 GEN 75871* AMELIA MILLER 02/23/2022 GEN 75872* AMERICAN PAYMENT CENTERS INC 02/23/2022 GEN 75873 AMY SCHULL 02/23/2022 GEN 75874* ANDREW JELLISON 02/23/2022 GEN 75875* ANDREW JELLISON 02/23/2022 GEN 758764 ANIXTER INC SALES TAX & FREIGHT HECK GEN 75869 TOTAL FOR FUND 1: OVERPAYMENTS DEP REFUND/APPLIED BOX RENTAL OVERPAYMENTS DEP REFUND/APPLIED DEP REFUND/APPLIED Sales Tax Receivable - Replace Sales Tax Receivable - Replace Tray cable. 18ga/8c. Tray cable. 18ga/8c. Hook-up wire. White. Hook-up wire. White. Hook-up wire. Black. Hook-up wire. Black. SALES TAX SALES TAX HECK GEN 75876 TOTAL FOR FUND 1: 02/23/2022 GEN 758774 AVIATION POWER & MARINE, LLC FILTER (HCU) FREIGHT HECK GEN 75877 TOTAL FOR FUND 1: 02/23/2022 GEN 75878* BAILEY HOECHST OR TRENTON HAMILTON DEP REFUND/APPLIED 02/23/2022 GEN 75879* BECCA GREEN OR TRENTON DRAEGER DEP REFUND/APPLIED 02/23/2022 GEN 75880* BEN EWIAK DEP REFUND/APPLIED 02/23/2022 GEN 75881* BIRCHDALE FIRE & SAFETY GROUNDS - OUTSIDE SERVICES Account Dept 401-588- 02 142-000- 00 235-000- 00 401-903- 06 142-000- 00 235-000- 00 235-000- 00 186-000- 00 186-000- 00 402-554- 01 402-554- 01 402-554- 01 402-554- 01 402-554- 01 402-554- 01 401-588- 02 401-588- 02 154-000- 00 401-588- 02 235-000- 00 235-000- 00 235-000- 00 401-935- 08 Page 2/39 Amount 56.36 32.50 51.14 93.36 175.50 32.50 11.26 11.84 74.08 77.88 77.15 13.34 77.15 13.35 12.59 370.82 437.75 17.63 455.38 97.50 149.50 42.25 88.17 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Description Fund: 1 ELECTRIC 02/23/2022 GEN 7588214 BORDER STATES ELECTRIC SUPPLY 02/23/2022 GEN 75883 02/23/2022 GEN 75884 02/23/2022 GEN 75885 02/23/2022 GEN 75886 BRANDON TIRE BRANDON WALTZ CAMERON BEILKE CARLY'S SHOE STORE 02/23/2022 GEN 75887*4 CINTAS CORPORATION 4470 02/23/2022 GEN 75888*4 CITY OF HUTCHINSON Page 3/39 Account Dept Amount CONNECTOR, PEDESTAL, 500 MCM 6 PLACE, 154-000- 00 31.07 PHOTO EYE, TWIST LOCK,(FOR LED) 154-000- 00 795.00 CONNECTOR, PEDESTAL, 500 MCM 6 PLACE, 154-000- 00 248.59 Distribution Inventory 154-000- 00 31.07 TERMINAL BLOCK, 3 PLACE, "COVERED" CSB 154-000- 00 187.27 TAPE, SUPER 33+ PROFESSIONAL GRADE 154-000- 00 96.60 Sales Tax Receivable - New 186-000- 00 2.14 Sales Tax Receivable - New 186-000- 00 54.66 Sales Tax Receivable - New 186-000- 00 19.23 Line - Materials 401-581- 02 275.40 HECK GEN 75882 TOTAL FOR FUND 1: 1,741.03 Vehicles - Material 402-598- 02 200.50 OVERPAYMENTS 142-000- 00 22.43 OVERPAYMENTS 142-000- 00 12.34 Uniforms & Laundry 401-588- 02 155.75 Uniforms & Laundry 401-588- 02 164.99 HECK GEN 75886 TOTAL FOR FUND 1: 320.74 Uniforms & Laundry 401-550- 01 457.96 Uniforms & Laundry 401-550- 01 455.46 UNIFORMS & LAUNDRY 401-588- 02 295.32 UNIFORMS & LAUNDRY 401-588- 02 380.81 HECK GEN 75887 TOTAL FOR FUND 1: 1,589.55 Accounts Payable 232-000- 00 28,461.51 Generator 41 Water & Sewer 401-547- 01 94.91 Generator 41 Water & Sewer 401-547- 01 74.19 Waste Disposal 401-550- 01 68.10 Waste Disposal 401-550- 01 1,089.86 Waste Disposal 401-550- 01 508.68 Line - Materials 402-594- 02 8.66 IT ADMIN AND SUPPORT 750 401-921- 08 13, 468.60 Utility Expenses - Water/Waste 401-930- 08 20.78 Utility Expenses - Water/Waste 401-930- 08 481.18 HECK GEN 75888 TOTAL FOR FUND 1: 44,276.47 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Description Fund: 1 ELECTRIC 02/23/2022 GEN 75889* CONWAY DEUTH & SCHMIESING PLLP 02/23/2022 GEN 758924 DAKOTA SUPPLY GROUP 02/23/2022 GEN 75893 DOUG RENKES 02/23/2022 GEN 75894* DUSTIN BOSKE 02/23/2022 GEN 75895* EDUARDO HERNANDEZ 02/23/2022 GEN 75896 ELIJAH LLOVERA 02/23/2022 GEN 75897 FAITH HASTINGS 02/23/2022 GEN 758984 FERGUSON ENTERPRISES 4525 02/23/2022 GEN 75899 FLASKERUD, JIM 02/23/2022 GEN 75900* GLORIA E ARCE 02/23/2022 GEN 75902*4 GOPHER STATE ONE -CALL INC 02/23/2022 GEN 75903 GRAINGER INC 02/23/2022 GEN 759044 GREAT RIVER ENERGY 02/23/2022 GEN 75905 HDR ENGINEERING INC 02/23/2022 GEN 75906*4 HILLYARD/HUTCHINSON Page 4/39 Account Dept Amount MISC SERVICES 401-923- 08 7,500.00 ELBOW, FIBERGLASS, 2" IPS, .070" WALL, 154-000- 00 584.86 FREIGHT 401-588- 02 102.18 HECK GEN 75892 TOTAL FOR FUND 1: 687.04 OVERPAYMENTS 142-000- 00 9.87 DEP REFUND/APPLIED 235-000- 00 169.00 DEP REFUND/APPLIED 235-000- 00 97.50 OVERPAYMENTS 142-000- 00 60.54 OVERPAYMENTS 142-000- 00 41.36 COMPOUND, PIPE, RECTORSEAL 45, REC25431 154-000- 00 20.15 FREIGHT 401-588- 02 17.71 HECK GEN 75898 TOTAL FOR FUND 1: 37.86 Cip - Residential 401-916- 07 250.00 DEP REFUND/APPLIED 235-000- 00 260.00 Line - Materials 401-581- 02 8.10 Rocker switch 402-554- 01 10.26 Redhat solenoid valve 402-554- 01 298.23 HECK GEN 75903 TOTAL FOR FUND 1: 308.49 Structures & Equipment - Mater 402-592- 02 668.00 Structures & Equipment - Mater 402-592- 02 668.00 TRANSMISSION EXPENSE 401-565- 03 152,476.01 Outside Services 402-574- 03 668.00 Outside Services 402-574- 03 668.00 HECK GEN 75904 TOTAL FOR FUND 1: 155,148.01 Outside Services 402-554- 01 6,280.91 Supplies 401-550- 01 386.83 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Payee Description Account Dept Page 5/39 Amount Fund: 1 ELECTRIC Grounds - Materials 401-935- 08 121.66 HECK GEN 75906 TOTAL FOR FUND 1: 508.49 02/23/2022 GEN 75907 HUNSTAD, DAVID Training - Expense 401-580- 02 61.60 Meetings & Travel - Expense (S 401-580- 02 61.60 HECK GEN 75907 TOTAL FOR FUND 1: 123.20 02/23/2022 GEN 75909* HUTCHINSON LEADER Cip - Marketing 401-916- 07 330.75 02/23/2022 GEN 75910 HUTCHINSON WHOLESALE SUPPLY CO Vehicles - Material 402-598- 02 37.81 Power Equipment - Materials 402-598- 02 15.26 Power Equipment - Materials 402-598- 02 205.03 Power Equipment - Materials 402-598- 02 96.54 Power Equipment - Materials 402-598- 02 (12.91) Other Equipment - Materials 402-598- 02 41.30 HECK GEN 75910 TOTAL FOR FUND 1: 383.03 02/23/2022 GEN 75911* INNOVATIVE OFFICE SOLUTIONS Office Supplies 401-921- 08 119.42 Misc Expense 401-930- 08 6,202.68 CHECK GEN 75911 TOTAL FOR FUND 1: 6,322.10 02/23/2022 GEN 75912* JACK RYAN DEP REFUND/APPLIED 235-000- 00 39.00 02/23/2022 GEN 75913* JACOB MEYER DEP REFUND/APPLIED 235-000- 00 130.00 02/23/2022 GEN 75914* JAMES CHAPMAN DEP REFUND/APPLIED 235-000- 00 240.50 02/23/2022 GEN 75915 JASON BURLEY OVERPAYMENTS 142-000- 00 82.00 02/23/2022 GEN 75916* JEANNE JOHNSON DEP REFUND/APPLIED 235-000- 00 130.00 02/23/2022 GEN 75917* JESSICA SULLIVAN DEP REFUND/APPLIED 235-000- 00 97.50 02/23/2022 GEN 759184 JOHN HENRY FOSTER FILTER, AIR/OIL SEPERATOR, SPIN ON, 154-000- 00 247.08 FILTER, AIR/OIL SEPERATOR, SPIN ON, 154-000- 00 741.24 Sales Tax Receivable - Replace 186-000- 00 18.47 Sales Tax Receivable - Replace 186-000- 00 52.73 FREIGHT 401-588- 02 21.55 03/23/2022 03:09 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 6/39 User: JMartig CHECK DATE FROM 02/18/2022 - 03/23/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 1 ELECTRIC FREIGHT 401-588- 02 25.81 HECK GEN 75918 TOTAL FOR FUND 1: 1,106.88 02/23/2022 GEN 75919* JOSHUA LOXTERCAMP OR JESSI DEP REFUND/APPLIED 235-000- 00 113.75 02/23/2022 GEN 75920* JOSHUA LOXTERCAMP OR JESSI DEP REFUND/APPLIED 235-000- 00 87.75 02/23/2022 GEN 75921 JOY SALES OVERPAYMENTS 142-000- 00 39.04 02/23/2022 GEN 75922* JULIE NEWTON OR STAN NEWTON DEP REFUND/APPLIED 235-000- 00 243.75 02/23/2022 GEN 75923* KENDRA NEWCOMBE DEP REFUND/APPLIED 235-000- 00 39.00 02/23/2022 GEN 759244 KURITA AMERICA INC TOWER INHIBITOR, F-9173 154-000- 00 4,154.92 8808 DESCALING ACID 154-000- 00 1,414.93 TAX & FREIGHT 401-588- 02 379.63 SALES TAX & FREIGHT 401-588- 02 186.22 CHECK GEN 75924 TOTAL FOR FUND 1: 6,135.70 02/23/2022 GEN 75925* KYLIE ROSENQUIST OR BRADLEY WOLFF DEP REFUND/APPLIED 235-000- 00 71.50 02/23/2022 GEN 75926 LANDON MEYER OVERPAYMENTS 142-000- 00 15. 96 02/23/2022 GEN 75927 LOGAN ARNDT OVERPAYMENTS 142-000- 00 57. 90 02/23/2022 GEN 75928* LOGAN WELTER DEP REFUND/APPLIED 235-000- 00 169. 00 02/23/2022 GEN 75929 MACKENZIE ABDO OVERPAYMENTS 142-000- 00 43.52 02/23/2022 GEN 75930* MANUEL PEREZ JR DEP REFUND/APPLIED 235-000- 00 52.00 02/23/2022 GEN 75931* MATT SANDEEN DEP REFUND/APPLIED 235-000- 00 32.50 02/23/2022 GEN 75932* MATTHEW BERGMANN DEP REFUND/APPLIED 235-000- 00 169.00 02/23/2022 GEN 75933* MATTHEW REINECCIUS DEP REFUND/APPLIED 235-000- 00 45.50 02/23/2022 GEN 75934 MAXWELL PETERSEN OVERPAYMENTS 142-000- 00 30.44 02/23/2022 GEN 75935*4 MCLEOD COOPERATVIE POWER ASSN Building & Grounds - Materials 402-592- 02 38.66 03/23/2022 03:09 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 7/39 User: JMartig CHECK DATE FROM 02/18/2022 - 03/23/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 1 ELECTRIC 02/23/2022 GEN 75936* MEDICA HEALTH INSURANCE 85% ELEC 242-000- 00 49,942.48 HEALTH INSURANCE -COBRA 242-000- 00 504.78 HECK GEN 75936 TOTAL FOR FUND 1: 50,447.26 02/23/2022 GEN 75937* MICHAEL STRAUMANN DEP REFUND/APPLIED 235-000- 00 110.50 02/23/2022 GEN 75938 MIDWEST OVERHEAD CRANE ANNUAL CRANE INSPECTIONS 402-554- 01 2,274.94 02/23/2022 GEN 75939* MINNESOTA SECRETARY OF STATE- Office Supplies 401-921- 08 90.00 02/23/2022 GEN 75940 MN DEPT OF LABOR AND INDUSTRY Outside Services 402-554- 01 10.00 02/23/2022 GEN 75941* NATHANIEL SORENSEN DEP REFUND/APPLIED 235-000- 00 149. 50 02/23/2022 GEN 75942 NERC Purchased Power 401-555- 02 3,871.90 02/23/2022 GEN 75943* NICHOLAS KARELS DEP REFUND/APPLIED 235-000- 00 65.00 02/23/2022 GEN 75944* NICHOLAS SCHATZ DEP REFUND/APPLIED 235-000- 00 97.50 02/23/2022 GEN 75945 NORTHERN STATES SUPPLY INC Supplies 401-550- 01 62.65 02/23/2022 GEN 75947* PATRICIA DALE DEP REFUND/APPLIED 235-000- 00 45.50 02/23/2022 GEN 75948* PHILLIP YUNGK DEP REFUND/APPLIED 235-000- 00 39.00 02/23/2022 GEN 75949* PREMIUM WATERS INC OFFICE SUPPLIES -BOTTLED WATER 401-921- 08 27.75 02/23/2022 GEN 75950 PRO AUTO & TRANSMISSION REPAIR Vehicles - Material 402-598- 02 395.08 Vehicles - Material 402-598- 02 86.34 HECK GEN 75950 TOTAL FOR FUND 1: 481.42 02/23/2022 GEN 75951 QUADE ELECTRIC Maintenance Other - Materials 402-554- 01 103.61 Maintenance Other - Materials 402-554- 01 261.41 HECK GEN 75951 TOTAL FOR FUND 1: 365.02 02/23/2022 GEN 75952 KID EQUIPMENT Power Equipment - Materials 402-598- 02 1,870.71 03/23/2022 03:09 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM 02/18/2022 - 03/23/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Fund: 1 ELECTRIC 02/23/2022 GEN 75954* ROBERT BROOKS OR CADI BROOKS DEP REFUND/APPLIED 02/23/2022 GEN 75955* ROBERT MARTIN DEP REFUND/APPLIED 02/23/2022 GEN 75957 RUSSELL-TUERK, INES Cip - Residential 02/23/2022 GEN 75958* SHRED RIGHT OFFICE SUPPLIES -SHREDDING SERVICES 02/23/2022 GEN 75959 SOUTHWEST INITIATIVE Cip- Commercial 02/23/2022 GEN 75961* STANDARD PRINTING & MAILING Office Supplies Office Supplies HECK GEN 75961 TOTAL FOR FUND 1: 02/23/2022 GEN 75962* TANNER GAGE DEP REFUND/APPLIED 02/23/2022 GEN 75963* THEODORE CASE DEP REFUND/APPLIED 02/23/2022 GEN 75964* TONY MOSENDEN OR KELLY PETERSON DEP REFUND/APPLIED 02/23/2022 GEN 759654 TOTAL FILTRATION SERVICES FILTERS BAG 4PONGIP2WE Sales Tax Receivable - Replace FREIGHT HECK GEN 75965 TOTAL FOR FUND 1: 02/23/2022 GEN 75966* UIS/SOURCECORP 02/23/2022 GEN 759684 WAYTEK COLLECTION - MATERIALS COLLECTION - MATERIALS HECK GEN 75966 TOTAL FOR FUND 1: BUTT CONNECTOR. 12-10 AWG, 432760 BUTT CONNECTOR. 16-14 AWG, 431760 BUTT CONNECTOR. 22-18 AWG, 430760 FREIGHT HECK GEN 75968 TOTAL FOR FUND 1: Account Dept 235-000- 00 235-000- 00 401-916- 07 401-921- 08 401-916- 07 401-921- 08 401-921- 08 235-000- 00 235-000- 00 235-000- 00 154-000- 00 186-000- 00 401-588- 02 401-903- 06 401-903- 06 154-000- 00 154-000- 00 154-000- 00 401-588- 02 02/23/2022 GEN 75969 WEIS PROPERTIES OR NICK WEIS OVERPAYMENTS 142-000- 00 02/23/2022 GEN 75970 WENDLING, BARBARA Cip- Commercial 401-916- 07 Page 8/39 Amount 32.50 110.50 12.00 12.78 350.00 39.56 55.30 94.86 45.50 55.25 175.50 261.00 21.30 48.75 331.05 225.98 2,080.90 29.00 17.80 14.60 16.02 77.42 19.18 400.00 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Description Fund: 1 ELECTRIC 02/23/2022 GEN 7597114 WEST CENTRAL SANITATION INC 02/23/2022 GEN 75972 YOSELYN ASCENCIO 02/23/2022 GEN 759734 ZIEGLER POWER SYSTEMS Account Dept GENERATOR 41 WATER & SEWER -INDUSTRIAL 401-547- 01 WASTE DISPOSAL-4TH AVE 401-550- 01 UTILITY ESP - WATER/WASTE 55/45- 401-930- 08 HECK GEN 75971 TOTAL FOR FUND 1: OVERPAYMENTS 142-000- 00 O-RING, FOR CHECK VALVE, 967082358 154-000- 00 FREIGHT 401-588- 02 HECK GEN 75973 TOTAL FOR FUND 1: 02/23/2022 GEN 75974* ZOICA ESPERICUETA DEP REFUND/APPLIED 02/28/2022 GEN 1014(E)*4 ALERUS HEALTH INSURANCE HEALTH INSURANCE HEALTH INSURANCE 02/28/2022 GEN 1019(E)* ALERUS HEALTH INSURANCE 03/01/2022 GEN 1012(E)* ARGUS DENTAL DENTAL INSURANCE -COBRA DENTAL INSURANCE-80o ELEC HECK GEN 1012(E) TOTAL FOR FUND 1: 03/01/2022 GEN 1015(E)4 ALERUS HEALTH INSURANCE HEALTH INSURANCE HECK GEN 1015(E) TOTAL FOR FUND 1: 03/01/2022 GEN 1022(E) MISO Deferred Energy Cost - Miso 03/01/2022 GEN 1023(E) MISO Deferred Energy Cost - Miso 03/02/2022 GEN 1035(E)* CITIZENS BANK Office Supplies 03/02/2022 GEN 1036(E)* PAY MENTECH collection - Materials 03/08/2022 GEN 1016(E)4 MINNESOTA DEPARTMENT OF COMMERCE CLEARING ACCOUNT-KOJETIN, E CLEARING ACCOUNT-UECKER, J CLEARING ACCOUNT-METTNER, D 235-000- 00 401-926- 08 242-000- 00 242-000- 00 401-546- 01 401-556- 03 174-000- 00 174-000- 00 401-921- 08 401-903- 06 186-000- 00 186-000- 00 186-000- 00 Page 9/39 Amount 107.78 174.00 262.95 544.73 6.62 195.20 11.63 206.83 110.50 ** VOIDED ** ** VOIDED ** ** VOIDED ** 388.12 62.19 622.79 684.98 1,886.32 28,723.88 388.23 71.59 1,897.86 80.00 13.61 250.00 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee Fund: 1 ELECTRIC 03/08/2022 GEN 1024(E) MISO 03/08/2022 GEN 1025(E) MISO CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Description CLEARING ACCOUNT-WEIS, K CLEARING ACCOUNT -BEACH, A CLEARING ACCOUNT -BACON, R CLEARING ACCOUNT-EVANSON, T CLEARING ACCOUNT-LOWEN, E CLEARING ACCOUNT-HUGHES, C CLEARING ACCOUNT -WEBER, K CLEARING ACCOUNT -SELECT PROTFOLIOS CLEARING ACCOUNT-CLOUTIER, A CLEARING ACCOUNT-AMAN, A CLEARING ACCOUNT-CACKA, B CLEARING ACCOUNT-JACOBSON, J CLEARING ACCOUNT-HAYASHI, C CLEARING ACCOUNT-STOICK, C CLEARING ACCOUNT-HOLLY'S INSULATION CLEARING ACCOUNT-LARON, J COLLECTION - MATERIALS HECK GEN 1016(E) TOTAL FOR FUND 1 Deferred Energy Cost - Miso Deferred Energy Cost - Miso 03/09/2022 GEN 1017(E)4 MINNESOTA DEPARTMENT OF COMMERCE CLEARING ACCOUNT - SCHNABEL, G CLEARING ACCOUNT - PAINSCHAUB, P CLEARING ACCOUNT - WEIBY, R CLEARING ACCOUNT - FERNSTROM, T CLEARING ACCOUNT - DORSO, E CLEARING ACCOUNT - JENNEKE, K CLEARING ACCOUNT - YOUNG, T CLEARING ACCOUNT - LALONE, C CLEARING ACCOUNT - GOFF, R CLEARING ACCOUNT - MCCORMICK, D CLEARING ACCOUNT - SCHMALZ, N CLEARING ACCOUNT - ARTMANN, R CLEARING ACCOUNT - FOX, S CLEARING ACCOUNT - RAMSEY, E CLEARING ACCOUNT - K'S FLOWERS CLEARING ACCOUNT - BASNEY, N CLEARING ACCOUNT - MADSEN, H CLEARING ACCOUNT - SKYLAR, R CLEARING ACCOUNT - JEPSEN, L CLEARING ACCOUNT - NORLING, M CLEARING ACCOUNT - MALAVE, C Account Dept 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 401-903- 06 174-000- 00 174-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 186-000- 00 Page 10/39 Amount 19.55 32.64 17.88 40.00 14.19 7.22 43.36 209.90 330.00 44.08 3.66 29.55 5.31 125.00 1,200.00 40.23 i_Sn 17,417.32 498.61 60.00 70.00 23.95 13.31 160.00 5.92 13.65 410.00 80.00 0.94 300.00 60.00 50.00 12.70 42.60 18.76 30.00 110.00 7.25 17.94 16.57 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee Fund: 1 ELECTRIC CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Description CLEARING ACCOUNT - BODINE, S CLEARING ACCOUNT - KOENING, C CLEARING ACCOUNT - MALONE, J CLEARING ACCOUNT - CAIN, C COLLECTION - MATERIALS HECK GEN 1017(E) TOTAL FOR FUND 1 Account Dept 186-000- 00 186-000- 00 186-000- 00 186-000- 00 401-903- 06 03/09/2022 GEN 75975* A R ENGH HEATHING AND AIR COND, Grounds - Materials 401-935- 08 03/09/2022 GEN 75976*4 ACE HARDWARE Sales Tax Receivable - Replace 186-000- 00 Sales Tax Receivable - Replace 186-000- 00 Sales Tax Receivable - Replace 186-000- 00 Accessory Plant - Materials 402-554- 01 Accessory Plant - Materials 402-554- 01 Maintenance Other - Materials 402-554- 01 Line - Materials 401-581- 02 HECK GEN 75976 TOTAL FOR FUND 1: 03/09/2022 GEN 759774 ALLIED ELECTRONICS INC LIGHT, PILOT, RED, ABB, 110-130VAC, 154-000- 00 LIGHT, PILOT, GREEN, ABB, 110-130VAC, 154-000- 00 SWITCH, SELECTOR SWITCH, 2 POSITION, 154-000- 00 LIGHT, PILOT, RED, ABB, 110-130VAC, 154-000- 00 FREIGHT 401-588- 02 HECK GEN 75977 TOTAL FOR FUND 1: 03/09/2022 GEN 75978 ANGELA HOLLIS OVERPAYMENTS 142-000- 00 03/09/2022 GEN 75979* ANTHONY WEGNER DEP REFUND/APPLIED 235-000- 00 03/09/2022 GEN 75980* ARROW GLASS Grounds - Materials 401-935- 08 03/09/2022 GEN 75981 BLAKE HUWE OVERPAYMENTS 142-000- 00 03/09/2022 GEN 75982*4 BORDER STATES ELECTRIC SUPPLY PHOTO EYE, TWIST LOCK,(FOR LED) 107-373- 00 POLE, 5" DIAMETER, FLUTED, CAST 154-000- 00 CONDUCTOR, 14 TW WHITE SOL 154-000- 00 CONDUIT, SCH 40, 2" X 10, PVC 154-000- 00 FIXTURE, COBRA HEAD LED, AMERICAN 154-000- 00 Sales Tax Receivable - New 186-000- 00 Sales Tax Receivable - New 186-000- 00 Page 11/39 Amount 7.68 29.74 75.00 3.23 1,620.74 430.50 4.47 1.45 1.24 64.95 21.60 17.97 4.26 115.94 73.92 73.92 70.50 36.96 21.79 260.00 825.13 72.27 4,075.50 1,296.70 68.50 176.50 1,361.10 89.15 8.94 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Payee Description Account Dept Page 12/39 Amount Fund: 1 ELECTRIC Sales Tax Receivable - New 186-000- 00 27.01 Sales Tax Receivable - New 186-000- 00 93.58 Sales Tax Receivable - Replace 186-000- 00 280.19 Uniforms & Laundry 401-550- 01 151.46 Line - Materials 401-581- 02 1,628.86 Materials 401-588- 02 0.46 Materials 401-588- 02 0.04 HECK GEN 75982 TOTAL FOR FUND 1: 9,257.99 03/09/2022 GEN 75983* BRANDON SHORE DEP REFUND/APPLIED 235-000- 00 117.00 03/09/2022 GEN 75984* BRANDT ENTERPRISES DEP REFUND/APPLIED 235-000- 00 715.00 03/09/2022 GEN 75985* BRITTANY BLOOM DEP REFUND/APPLIED 235-000- 00 130.00 03/09/2022 GEN 75987* C O P SHOP LLC DEP REFUND/APPLIED 235-000- 00 325.00 03/09/2022 GEN 75988* CALEB BEILKE OR CODY ROSALES DEP REFUND/APPLIED 235-000- 00 227.50 03/09/2022 GEN 75990*4 CINTAS CORPORATION 4470 Uniforms & Laundry 401-550- 01 483.86 Uniforms & Laundry 401-550- 01 454.31 UNIFORMS & LAUNDRY 401-588- 02 686. 95 UNIFORMS & LAUNDRY 401-588- 02 362.81 HECK GEN 75990 TOTAL FOR FUND 1: 1,987.93 03/09/2022 GEN 75991*4 CITY OF HUTCHINSON VEHICLE/EQUIPMENT FUEL -POWER 401-550- 01 288.03 VEHICLES/EQUIPMENT FUEL-ELEC 401-588- 02 1,351.00 Vehicles - Material 401-921- 08 22.40 VEHICLES/EQUIPMENT FUEL-ADMIN 55/45 401-935- 08 62.66 HECK GEN 75991 TOTAL FOR FUND 1: 1,724.09 03/09/2022 GEN 75992* CORY ROBINSON DEP REFUND/APPLIED 235-000- 00 162.50 03/09/2022 GEN 75993 COUNTRYSIDE FLAGPOLE Supplies 401-550- 01 41.68 03/09/2022 GEN 75995 CREEKSIDE SOILS Materials 401-588- 02 7.50 03/09/2022 GEN 759964 CULLIGAN ULTRAPURE OF NORTHFIELD KIT, 521,D&S,EP, P/N1081792 154-000- 00 350.48 KIT, DIAPHRAM & SEAL, V531-RAE FCS P/N 154-000- 00 92.07 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Payee Description Account Dept Page 13/39 Amount Fund: 1 ELECTRIC FREIGHT 401-588- 02 17.45 HECK GEN 75996 TOTAL FOR FUND 1: 460.00 03/09/2022 GEN 75997* DANIEL TORCHIA DEP REFUND/APPLIED 235-000- 00 136.50 03/09/2022 GEN 75998* DARLENE STCYR OR MISTY RICE DEP REFUND/APPLIED 235-000- 00 195.00 03/09/2022 GEN 75999* DAVID GLASER DEP REFUND/APPLIED 235-000- 00 32.50 03/09/2022 GEN 76000* DOWNTOWN CLOTHING DEP REFUND/APPLIED 235-000- 00 325.00 03/09/2022 GEN 76001 ELECTROSWITCH Electroswitch Series 24 CSR 402-592- 02 8,508.10 03/09/2022 GEN 76002* ELIZABETH HOFFMANN DEP REFUND/APPLIED 235-000- 00 48.75 03/09/2022 GEN 76004 EMILY OLSON OVERPAYMENTS 142-000- 00 47. 82 03/09/2022 GEN 76006* FAMILY & COSMETIC GENTLE DENTISTRY DEP REFUND/APPLIED 235-000- 00 32.50 03/09/2022 GEN 76007 FASTENAL COMPANY Maintenance Other - Materials 402-554- 01 147.26 03/09/2022 GEN 76008* FIRST CHOICE FOOD & BEVERAGE BREAKROOM/RECOGNITION BANQUET 401-926- 08 258.00 03/09/2022 GEN 76009*4 GOPHER STATE ONE -CALL INC Line - Materials 401-581- 02 14.18 03/09/2022 GEN 76010 GRAHAM TIRE Vehicles - Material 402-598- 02 501.30 03/09/2022 GEN 76011 GREGGORY CLOUGH OVERPAYMENTS 142-000- 00 91.22 03/09/2022 GEN 76013* H & R BLOCK DEP REFUND/APPLIED 235-000- 00 195.00 03/09/2022 GEN 76014 HANSEN GRAVEL INC Maintenance Other - Materials 402-554- 01 748.13 03/09/2022 GEN 76015 HER ENGINEERING INC Engineering - Labor 401-546- 01 1,178.09 03/09/2022 GEN 76016* HEIDI HOLM DEP REFUND/APPLIED 235-000- 00 39.00 03/09/2022 GEN 76017* HENNINGSGAARD, JENNA Cip - Residential 401-916- 07 25.00 03/09/2022 GEN 76018 HOFFMAN FILTER SERVICE PAD, OIL ABSORBANT, 16" X 18", IN WPHL, 154-000- 00 223.00 Sales Tax Receivable - Replace 186-000- 00 15.33 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Payee Description Account Dept Page 14/39 Amount Fund: 1 ELECTRIC HECK GEN 76018 TOTAL FOR FUND 1: 238.33 03/09/2022 GEN 76019* HUTCHFIELD SERVICES INC Grounds - Outside Services 401-935- 08 1,168.37 03/09/2022 GEN 76020*4 HUTCHINSON LEADER Cip - Marketing 401-916- 07 330.75 03/09/2022 GEN 76022* INNOVATIVE OFFICE SOLUTIONS Office Supplies 401-921- 08 85. 82 03/09/2022 GEN 76023 INTEGRATED POWER SERVICES Rebuild of electric motor repair 402-554- 01 1,762.41 Rebuild of electric motor repair 402-554- 01 121.17 HECK GEN 76023 TOTAL FOR FUND 1: 1,883.58 03/09/2022 GEN 76024* JACQUE SCHMIT GET REFUND/APPLIED 235-000- 00 78.00 03/09/2022 GEN 76025 JAY MALONE MOTORS Vehicles - Material 402-598- 02 50.94 03/09/2022 GEN 76026* JOELLE SCHLUETER GET REFUND/APPLIED 235-000- 00 42.25 03/09/2022 GEN 76027* JON SUEDBECK GET REFUND/APPLIED 235-000- 00 32.50 03/09/2022 GEN 76028* JULIE JOHANSEN OR MIKE JOHANSEN GET REFUND/APPLIED 235-000- 00 201.50 03/09/2022 GEN 76029* KEITH BRULLA GET REFUND/APPLIED 235-000- 00 39.00 03/09/2022 GEN 76030* KEVIN HOLTZ GET REFUND/APPLIED 235-000- 00 117.00 03/09/2022 GEN 76031* KNODEL, MIKE Cip - Residential 401-916- 07 25.00 03/09/2022 GEN 76032* KURT DAHLQUIST GET REFUND/APPLIED 235-000- 00 130.00 03/09/2022 GEN 76033* LAURA WEIKLE OR NATHAN STOWMAN GET REFUND/APPLIED 235-000- 00 130.00 03/09/2022 GEN 76034* LIEN, MIKE Cip - Residential 401-916- 07 31.00 03/09/2022 GEN 76035* M. R. AG INC GET REFUND/APPLIED 235-000- 00 195.00 03/09/2022 GEN 76036* MARCO TECHNOLOGIES, LLC OFFICE SUPPLIES 401-921- 08 521.68 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Payee Description Account Dept Page 15/39 Amount Fund: 1 ELECTRIC 03/09/2022 GEN 760374 MATHESON TRI-GAS INC Sales Tax Receivable - Replace 186-000- 00 3.60 Generator 41 Material 402-554- 01 52.30 HECK GEN 76037 TOTAL FOR FUND 1: 55.90 03/09/2022 GEN 760384 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 76038 TOTAL FOR FUND 1: 6,950.00 03/09/2022 GEN 760394 MECHANICAL SYSTEMS INC DESICCANT FILTER HF, 77-P200-403-20R 154-000- 00 536.48 DESICCANT CO2 ADSORBER CIA 77-P0323- 154-000- 00 635.10 Sales Tax Receivable - Replace 186-000- 00 82.12 FREIGHT 401-588- 02 22.87 CHECK GEN 76039 TOTAL FOR FUND 1: 1,276.57 03/09/2022 GEN 76040* MEGAN HAAS GET REFUND/APPLIED 235-000- 00 58.50 03/09/2022 GEN 76041 MERKINS, JAMES Vehicles - Material 402-598- 02 20.00 03/09/2022 GEN 76042 MIDWEST MACHINERY CO Power Equipment - Materials 402-598- 02 1,164.46 03/09/2022 GEN 760444 MIRATECH SENSOR, TEMPERATURE, TEA330 154-000- 00 1,331.36 FREIGHT 401-588- 02 52.36 CHECK GEN 76044 TOTAL FOR FUND 1: 1,383.72 03/09/2022 GEN 76046* NATHANIEL SAUTER GET REFUND/APPLIED 235-000- 00 247.00 03/09/2022 GEN 76048* NICHOLAS TCHIDA GET REFUND/APPLIED 235-000- 00 78.00 03/09/2022 GEN 76050* NUVERA TELEPHONE 401-921- 08 1,933.03 03/09/2022 GEN 76051*4 OXYGEN SERVICE COMPANY INC Maintenance Other - Materials 402-554- 01 91.81 Maintenance Other - Materials 402-554- 01 68.43 CHECK GEN 76051 TOTAL FOR FUND 1: 160.24 03/09/2022 GEN 76052* PAMELA COATHUP OR THOMAS COATHUP GET REFUND/APPLIED 235-000- 00 39.00 03/23/2022 03:09 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 16/39 User: JMartig CHECK DATE FROM 02/18/2022 - 03/23/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 1 ELECTRIC 03/09/2022 GEN 76053* PHILIP BLAZINSKI GET REFUND/APPLIED 235-000- 00 32.50 03/09/2022 GEN 76055 QUADE ELECTRIC Maintenance Other - Materials 402-554- 01 174.95 03/09/2022 GEN 76056* RELIANCE STANDARD LIFE -LIFE LTD INSURANCE-80o ELEC 242-000- 00 1, 565.68 LIFE INSURANCE-80o ELEC 242-000- 00 821.02 HECK GEN 76056 TOTAL FOR FUND 1: 2,386.70 03/09/2022 GEN 76057* RICK'S J & R REPAIR & RADIATOR GET REFUND/APPLIED 235-000- 00 1,144.00 03/09/2022 GEN 76059* RIVER ROAD MGNT DBA FANTASTIC SAMS GET REFUND/APPLIED 235-000- 00 845.00 03/09/2022 GEN 76060 RUNNING'S SUPPLY INC Power Equipment - Materials 402-598- 02 90.68 03/09/2022 GEN 76061 SAFETY-KLEEN SYSTEMS, INC Waste Disposal 401-550- 01 460.00 03/09/2022 GEN 76062* SALVATION ARMY GET REFUND/APPLIED 235-000- 00 162.50 03/09/2022 GEN 76063* SCOTT JASTER GET REFUND/APPLIED 235-000- 00 97.50 03/09/2022 GEN 76064* SHARON WERSAL GET REFUND/APPLIED 235-000- 00 39.00 03/09/2022 GEN 76065* SHARON WERSAL GET REFUND/APPLIED 235-000- 00 32.50 03/09/2022 GEN 76066* SHRED RIGHT OFFICE SUPPLIES -SHREDDING SERVICES 401-921- 08 12.78 03/09/2022 GEN 76068* STANDARD PRINTING & MAILING Office Supplies 401-921- 08 818.39 03/09/2022 GEN 76069* STEPHEN SWANSON GET REFUND/APPLIED 235-000- 00 65.00 03/09/2022 GEN 76070* STEVE KLAMMER GET REFUND/APPLIED 235-000- 00 58.50 03/09/2022 GEN 76071* TRANS LEASE/SERVICE AGREEMENTS 401-921- 08 1,023. 94 03/09/2022 GEN 76072 TRI-DIM FILTER CORPORATION FILTER, TRI-DEK, 24"X80" 050241605 154-000- 00 707.52 FILTER, TRI-DEK, 20"X80", 050201605 154-000- 00 211.04 FILTER, TRI-DEK, 24"X60", 050241504 154-000- 00 141.48 HECK GEN 76072 TOTAL FOR FUND 1: 1,060.04 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Description Fund: 1 ELECTRIC 03/09/2022 GEN 76073* UNITED PARCEL SERVICE 03/09/2022 GEN 76074* VAN IWAARDEN ASSOCIATES 03/09/2022 GEN 76075* VERIZON WIRELESS 03/09/2022 GEN 760764 WARTSILA OF NORTH AMERICA, INC 03/09/2022 GEN 760784 ZIEGLER POWER SYSTEMS 03/15/2022 GEN 1026(E) MISO 03/15/2022 GEN 1027(E) MISO 03/15/2022 GEN 1033(E)4 ALERUS 03/15/2022 GEN 1034(E)* INVOICE CLOUD 03/15/2022 GEN 1037(E) MISO 03/15/2022 GEN 1038(E) MISO 03/15/2022 GEN 1039(E) MISO Account Dept Page 17/39 Amount MAIL SERVICES - UPS, FEDEX 401-921- 08 145.99 MISC SERVICES 401-923- 08 660.00 TELEPHONE 401-921- 08 1,256.60 KIT, SPARE PARTS FOR IGNITION COIL, 154-000- 00 1,071.00 FREIGHT 401-588- 02 115.82 HECK GEN 76076 TOTAL FOR FUND 1: 1,186.82 GASKET, MAO 0093614 154-000- 00 13.13 GASKET, RING MAO 0115695 154-000- 00 23.25 REGULATOR, STARTER PRESSURE 154-000- 00 457.30 SOLENOID, STARTER 154-000- 00 235.00 REGULATOR, MAO 0371583 154-000- 00 2,137.50 VALVE, CHECK-PRECHAMBER - POSITION 3 154-000- 00 2,165.00 SENSOR, TEMP 344692-431, 154-000- 00 95.00 FREIGHT 401-588- 02 30.26 FREIGHT 401-588- 02 25.26 HECK GEN 76078 TOTAL FOR FUND 1: 5,181.70 Deferred Energy Cost - Miso 174-000- 00 8,799.90 Deferred Energy Cost - Miso 174-000- 00 489.65 HEALTH INSURANCE 401-546- 01 374.32 HEALTH INSURANCE 401-556- 03 515.20 HECK GEN 1033(E) TOTAL FOR FUND 1: 889.52 Collection - Materials 401-903- 06 2,413.11 SCHEDULE 26 401-565- 03 13,822.43 SCHEDULE 26A 401-565- 03 31,126.01 Transmission Expense 401-565- 03 1.30 HECK GEN 1037(E) TOTAL FOR FUND 1: 44,949.74 SCHEDULE 10 401-565- 03 5,097.69 SCHEDULE 1 401-565- 03 4,143.28 03/23/2022 03:09 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 18/39 User: JMartig CHECK DATE FROM 02/18/2022 - 03/23/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 1 ELECTRIC SCHEDULE 2 401-565- 03 12,090.50 SCHEDULE 26 401-565- 03 2,371.06 SCHEDULE 26A 401-565- 03 0.18 SCHEDULE 10 401-565- 03 974.75 HECK GEN 1039(E) TOTAL FOR FUND 1: 19,579.77 03/16/2022 GEN 1018(E)*4 VISA SPARK PLUG, DENSO PART # GI3-1 154-000- 00 2,256.00 SPARK PLUG, DENSO PART # GI3-1 154-000- 00 10.48 Sales Tax Receivable - Replace 186-000- 00 88.73 Sales Tax Receivable - Replace 186-000- 00 1.62 Sales Tax Receivable - Replace 186-000- 00 1.15 Supplies 401-550- 01 340.20 Supplies 401-550- 01 1.58 Uniforms & Laundry 401-550- 01 164.97 Uniforms & Laundry 401-550- 01 0.77 Generator 41 Material 402-554- 01 1,126.76 Generator 45 Material 402-554- 01 20.58 Generator 47 Material 402-554- 01 14.59 Accessory Plant - Materials 402-554- 01 545.91 Vehicles - Material 402-554- 01 355.32 Maintenance Other - Materials 402-554- 01 2,903.57 Maintenance Other - Materials 402-554- 01 742.66 Training - Expense 401-580- 02 46.09 Line - Materials 401-581- 02 861.96 Line - Materials 401-581- 02 340.21 Line - Materials 401-581- 02 1.58 Breakroom/Recognition Banquet 401-926- 08 1.88 Grounds - Materials 401-935- 08 39.77 Grounds - Materials 401-935- 08 0.18 Vehicles - Material 401-935- 08 156.02 Vehicles - Material 401-935- 08 0.72 HECK GEN 1018(E) TOTAL FOR FUND 1: 10,023.30 03/18/2022 GEN 1011(E) MRES Purchased Power 401-555- 02 938,353.39 03/18/2022 GEN 1029(E)*4 BP CANANDA ENERGY SOLUTIONS GENERATOR 41 NATURAL GAS 401-547- 01 484.45 Generator 41 Aux Boiler 401-547- 01 37.90 GENERATOR 45 NATURAL GAS 401-547- 01 74.53 GENERATOR 45 NATURAL GAS 401-547- 01 25,552.23 Generator 46 Fuel Oil 401-547- 01 90.83 Generator 46 Fuel Oil 401-547- 01 48,385.92 Generator 47 Natural Gas 401-547- 01 90.83 03/23/2022 03:09 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 19/39 User: JMartig CHECK DATE FROM 02/18/2022 - 03/23/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 1 ELECTRIC Generator 47 Natural Gas 401-547- 01 39,663.35 Generator 49 Natural Gas 401-547- 01 232.91 Generator 49 Natural Gas 401-547- 01 3,455.70 Utility Expenses - Water/Waste 401-930- 08 4,346.08 HECK GEN 1029(E) TOTAL FOR FUND 1: 122,414.73 03/22/2022 GEN 1031(E) ALERUS HEALTH INSURANCE 401-546- 01 3,076.49 03/22/2022 GEN 1032(E)* MINNESOTA REVENUE STATE SALES TAX 242-000- 00 58, 028.00 City Sales Tax 242-000- 00 4,194.00 COUNTY SALES TAX 242-000- 00 4, 194.00 HECK GEN 1032(E) TOTAL FOR FUND 1: 66,416.00 03/23/2022 GEN 76081 3 M Cip - Industrial 401-916- 07 5,166.06 03/23/2022 GEN 76082*4 ACE HARDWARE Supplies 401-550- 01 12.99 Generator 41 Material 402-554- 01 20.28 Generator 46 Material 402-554- 01 19.05 Accessory Plant - Materials 402-554- 01 41.85 Maintenance Other - Materials 402-554- 01 0.43 Maintenance Other - Materials 402-554- 01 229.00 Maintenance Other - Materials 402-554- 01 4.26 Line - Materials 401-581- 02 3.09 Power Equipment - Materials 402-598- 02 3.40 Misc Expenses 401-935- 08 26.03 HECK GEN 76082 TOTAL FOR FUND 1: 360.38 03/23/2022 GEN 760834 ALLIED ELECTRONICS INC CONNECTOR, TERMINAL BLOCK FUSE, 154-000- 00 26.40 CONNECTOR, TERMINAL BLOCK FUSE, 154-000- 00 26.40 LIGHT, PILOT, GREEN, ABB LED 24V, 154-000- 00 112.68 LIGHT, PILOT, RED, ABB LED 24V, 154-000- 00 112.68 SWITCH, SELECTOR SWITCH, 2 POSITION, 154-000- 00 85. 98 SWITCH, SELECTOR SWITCH, 2 POSITION, 154-000- 00 85. 98 SWITCH, SELECTOR SWITCH, 2 POSITION, 154-000- 00 85. 98 FREIGHT 401-588- 02 15.00 HECK GEN 76083 TOTAL FOR FUND 1: 551.10 03/23/2022 GEN 76084*4 BORDER STATES ELECTRIC SUPPLY BLADE, RECIP SAW, LENX 9114R, 9" 14T 154-000- 00 19.20 POLE, HAPCO PRESIDENTIAL CAST ALUM 154-000- 00 5,153.85 PHOTO EYE, 120-480 TWIST LOCK, AREA 154-000- 00 6.92 CEMENT/SOLVENT, PVC 154-000- 00 9.68 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee Fund: 1 ELECTRIC CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Description 03/23/2022 GEN 76085 CENTRAL HYDRAULICS 03/23/2022 GEN 7608614 CINTAS CORPORATION 4470 03/23/2022 GEN 76087*4 CITY OF HUTCHINSON 03/23/2022 GEN 76088* CROW RIVER FLORAL Account Dept Page 20/39 Amount CONNECTOR, PEDESTAL, 500 MCM 6 PLACE, 154-000- 00 409.50 CONNECTOR, MULTI TAP STUD WITH COVER, 154-000- 00 870.24 PHOTO EYE, TWIST LOCK, (FOR LED) 154-000- 00 179.85 SPLIT BOLT 48 KS-15 Cu BURNDY 154-000- 00 47.25 Natural Gas Inventory 154-000- 00 (66.93) Sales Tax Receivable - New 186-000- 00 1.32 Sales Tax Receivable - New 186-000- 00 354.33 Sales Tax Receivable - New 186-000- 00 29.29 Sales Tax Receivable - New 186-000- 00 12.36 Sales Tax Receivable - New 186-000- 00 3.25 BATTERY, SIZE AAA 401-550- 01 44.64 BATTERY, SIZE AA 401-550- 01 44.64 BATTERY, SIZE D 401-581- 02 73.44 SALES TAX 401-588- 02 73.99 HECK GEN 76084 TOTAL FOR FUND 1: 7,266.82 Generator 46 Material 402-554- 01 56.37 Generator 46 Material 402-554- 01 15.60 Generator 47 Material 402-554- 01 68.74 HECK GEN 76085 TOTAL FOR FUND 1: 140.71 Uniforms & Laundry 401-550- 01 553.89 Uniforms & Laundry 401-550- 01 723.52 UNIFORMS & LAUNDRY 401-588- 02 386.05 UNIFORMS & LAUNDRY 401-588- 02 444.64 HECK GEN 76086 TOTAL FOR FUND 1: 2,108.10 Generator 41 Water & Sewer 401-547- 01 107.93 Generator 41 Water & Sewer 401-547- 01 92.75 Waste Disposal 401-550- 01 63.46 Waste Disposal 401-550- 01 1,026.26 Waste Disposal 401-550- 01 533.45 Line - Materials 402-594- 02 8.66 IT ADMIN AND SUPPORT 750 401-921- 08 2, 080.65 Utility Expenses - Water/Waste 401-930- 08 8.62 Utility Expenses - Water/Waste 401-930- 08 504.62 HECK GEN 76087 TOTAL FOR FUND 1: 4,426.40 Office Supplies 401-921- 08 71.99 Office Supplies 401-921- 08 93.75 03/23/2022 03:09 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 21/39 User: JMartig CHECK DATE FROM 02/18/2022 - 03/23/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 1 ELECTRIC HECK GEN 76088 TOTAL FOR FUND 1: 165.74 03/23/2022 GEN 760904 DELMAR COMPANY FLEX GASKET,2" 6004 154-000- 00 25.20 TAX & FREIGHT 401-588- 02 19.74 HECK GEN 76090 TOTAL FOR FUND 1: 44.94 03/23/2022 GEN 76091 DGR ENGINEERING Plant 42 Relays and RTU Upgrade 107-362- 00 204.00 STATION EQUIPMENT (SWITCHGEAR, 107-362- 00 58.50 Plant 41 Relay and RTU Upgrades 107-362- 00 8,174.00 Station Equipment (Switchgear, 107-362- 00 26.00 HECK GEN 76091 TOTAL FOR FUND 1: 8,462.50 03/23/2022 GEN 76092 DIXON, JACQUELYN Cip - Residential 401-916- 07 25.00 03/23/2022 GEN 76093 DIXON, JOAN Cip - Residential 401-916- 07 25.00 03/23/2022 GEN 76094* ECKHART, BRUCE Cip - Residential 401-916- 07 200.00 03/23/2022 GEN 76095 EMBROIDERY PLUS Uniforms & Laundry 401-550- 01 41.68 03/23/2022 GEN 76096 GREAT RIVER ENERGY TRANSMISSION EXPENSE 401-565- 03 91,117.59 03/23/2022 GEN 76098* HAGER JEWELRY INC Office Supplies 401-921- 08 10.98 03/23/2022 GEN 76100* HILLYARD/HUTCHINSON Grounds - Materials 401-935- 08 109.03 03/23/2022 GEN 76101* HOTSY EQUIPMENT OF MINNESOTA Grounds - Materials 401-935- 08 374.99 03/23/2022 GEN 76102* HUTCHINSON HEALTH Misc Expenses 401-935- 08 88.55 03/23/2022 GEN 76103* HUTCHINSON JAYCEES WATER CARNIVAL CIP - MARKETING 401-916- 07 937.50 03/23/2022 GEN 76104*4 HUTCHINSON WHOLESALE SUPPLY CO Power Equipment - Materials 402-598- 02 6.18 03/23/2022 GEN 76105* INNOVATIVE OFFICE SOLUTIONS Office Supplies 401-921- 08 156.10 03/23/2022 GEN 761064 JOHN HENRY FOSTER OIL, QUINCY QUIN-SYN EDGE, QUI146073- 154-000- 00 570.88 VALVE, CHECK, ATLAS COPCO, 154-000- 00 254.94 VALVE, CHECK, ATLAS COPCO, 154-000- 00 2.29 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee Fund: 1 ELECTRIC CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Description 03/23/2022 GEN 76107* JOHNSON, NATE 03/23/2022 GEN 76108* JOSSART, PAUL 03/23/2022 GEN 761094 KURITA AMERICA INC 03/23/2022 GEN 76112* MEDICA 03/23/2022 GEN 76113 MIDWEST MACHINERY CO 03/23/2022 GEN 76114 MRES 03/23/2022 GEN 76115*4 NORTHERN STATES SUPPLY INC 03/23/2022 GEN 76118*4 OXYGEN SERVICE COMPANY INC 03/23/2022 GEN 76120* PREMIUM WATERS INC 03/23/2022 GEN 76122 QUADE ELECTRIC Account Dept KIT, ATLAS COPCO MPV, ATL 2901353100 154-000- 00 KIT, ATLAS COPCO MPV, ATL 2901353100 154-000- 00 KIT, ATLAS COPCO UNLOADER, 154-000- 00 KIT, ATLAS COPCO UNLOADER, 154-000- 00 Sales Tax Receivable - New 186-000- 00 Sales Tax Receivable - New 186-000- 00 Sales Tax Receivable - Replace 186-000- 00 FREIGHT 401-588- 02 HECK GEN 76106 TOTAL FOR FUND 1: Cip - Residential 401-916- 07 Cip - Residential 401-916- 07 CARD, INPUT, ECONTROLLER 22-0122 154-000- 00 ABLE, PREAMP HOUSING, NO ATC, 154-000- 00 Sales Tax Receivable - Replace 186-000- 00 Sales Tax Receivable - Replace 186-000- 00 FREIGHT 401-588- 02 FREIGHT 401-588- 02 HECK GEN 76109 TOTAL FOR FUND 1: HEALTH INSURANCE 85% ELEC 242-000- 00 HEALTH INSURANCE -COBRA 242-000- 00 HECK GEN 76112 TOTAL FOR FUND 1: Power Equipment - Materials 402-598- 02 Tearing Account 186-000- 00 Line - Materials 401-581- 02 Accessory Plant - Materials 402-554- 01 Maintenance Other - Materials 402-554- 01 HECK GEN 76118 TOTAL FOR FUND 1: OFFICE SUPPLIES -BOTTLED WATER 401-921- 08 Building & Grounds - Materials 402-592- 02 Page 22/39 Amount 942.86 8.48 1,041.04 9.37 155.40 1.40 43.81 66.42 3,096.89 1,225.00 25.00 320.00 280.00 22.91 20.31 13.23 52,345.21 4,744.89 57,090.10 650.29 3,694.02 28.07 31.82 3.00 1,152.46 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Payee Description Account Dept Page 23/39 Amount Fund: 1 ELECTRIC 03/23/2022 GEN 76123* RELIANCE STANDARD LIFE -LIFE LTD INSURANCE-80o ELEC 242-000- 00 1,565.68 LIFE INSURANCE-80o ELEC 242-000- 00 882.94 HECK GEN 76123 TOTAL FOR FUND 1: 2,448.62 03/23/2022 GEN 76124 RIGELMAN, RYAN Cip - Residential 401-916- 07 75.00 03/23/2022 GEN 76125 RUNNING'S SUPPLY INC Power Equipment - Materials 402-598- 02 37.75 03/23/2022 GEN 76126 SCHWARZ, RONALD Cip - Residential 401-916- 07 25.00 03/23/2022 GEN 76127 SCHWEITZER ENGINEERING LABS SEL-2407 107-362- 00 1,645.00 Sales Tax Receivable - New 186-000- 00 113.09 HECK GEN 76127 TOTAL FOR FUND 1: 1,758.09 03/23/2022 GEN 76128* SKOGLUND DIRKSEN, ARDIS Cip - Residential 401-916- 07 200.00 03/23/2022 GEN 76130* STANDARD PRINTING & MAILING Mail Services - Ups, Fedex 401-921- 08 22.94 03/23/2022 GEN 76131 STATE OF MINNESOTA Regulatory Expenses 401-928- 08 713.46 Regulatory Expenses 401-928- 08 618.88 HECK GEN 76131 TOTAL FOR FUND 1: 1,332.34 03/23/2022 GEN 761324 SWANSON FLO-SYSTEMS CO Sales Tax Receivable - Replace 186-000- 00 24.29 Sales Tax Receivable - Replace 186-000- 00 1.36 ST266Z5 Eaton Viton O-Ring 402-554- 01 192.00 ST266Z5 Eaton Viton O-Ring 402-554- 01 10.72 ST00286 Eaton Viton O-Ring 402-554- 01 102.00 ST00286 Eaton Viton O-Ring 402-554- 01 5.70 ST00586 Eaton Viton O-RIng 402-554- 01 39.47 ST00586 Eaton Viton O-RIng 402-554- 01 2.20 HECK GEN 76132 TOTAL FOR FUND 1: 377.74 03/23/2022 GEN 76133 TK ELEVATOR CORPORATION Outside Services 402-554- 01 271.06 03/23/2022 GEN 761344 TOTAL FILTRATION SERVICES FILTER CARTRIDGE 20" GXO1-20-25RO 154-000- 00 237.60 Sales Tax Receivable - Replace 186-000- 00 18.44 FREIGHT 401-588- 02 30.59 HECK GEN 76134 TOTAL FOR FUND 1: 286.63 03/23/2022 GEN 76136* VIK'S LANDSCAPING & LAWN CARE, INC GROUNDS - OUTSIDE SERVICES 401-935- 08 1,120.60 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee Fund: 1 ELECTRIC CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Description 03/23/2022 GEN 7613814 WEST CENTRAL SANITATION INC 03/23/2022 GEN 76139 PRO FREIGHT Account Dept GENERATOR 41 WATER & SEWER -INDUSTRIAL 401-547- 01 WASTE DISPOSAL-4TH AVE 401-550- 01 UTILITY ESP - WATER/WASTE 55/45- 401-930- 08 HECK GEN 76138 TOTAL FOR FUND 1: Accessory Plant - Materials 402-554- 01 Total for fund 1 ELECTRIC Page 24/39 Amount 109.14 176.19 266.26 551.59 75.00 3,077,756.46 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK Payee DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Description Account Dept Page 25/39 Amount Fund: 2 GAS 02/18/2022 GEN 1001(E)*4 BP CANANDA ENERGY SOLUTIONS GAS FOR RETAIL 401-807- 04 1,781.80 GAS FOR RETAIL 401-807- 04 333,395.74 3M 401-807- 04 476,090.60 HTI 401-807- 04 64,311.08 UNG 401-807- 04 9,145.64 BROWNTON 401-807- 04 26,127.41 Utility Expenses - Water/Waste 401-930- 08 5,001.92 HECK GEN 1001(E) TOTAL FOR FUND 2: 915,854.19 02/18/2022 GEN 1002(E) PUBLIC ENERGY AUTHORITY OF Gas For Retail 401-807- 04 539,686.75 Contract Gas For Retail 401-807- 04 155.00 HECK GEN 1002(E) TOTAL FOR FUND 2: 539,841.75 02/23/2022 GEN 1009(E)* MINNESOTA REVENUE State Sales Tax 242-000- 00 23,289.00 City Sales Tax 242-000- 00 1,646.00 COUNTY SALES TAX 242-000- 00 1, 646.00 HECK GEN 1009(E) TOTAL FOR FUND 2: 26,581.00 02/23/2022 GEN 75866*4 ACE HARDWARE Meters And All Fittings 107-381- 00 18.12 Materials 401-874- 04 48.08 Materials 401-874- 04 4.79 Materials 401-874- 04 31.99 Materials 401-874- 04 34.19 Grounds - Materials 401-935- 08 10.15 HECK GEN 75866 TOTAL FOR FUND 2: 147.32 02/23/2022 GEN 75867* ADMI DEP REFUND/APPLIED 235-000- 00 875.00 02/23/2022 GEN 75871* AMELIA MILLER DEP REFUND/APPLIED 235-000- 00 17.50 02/23/2022 GEN 75872* AMERICAN PAYMENT CENTERS INC BOX RENTAL 401-903- 06 41.84 02/23/2022 GEN 75874* ANDREW JELLISON DEP REFUND/APPLIED 235-000- 00 94.50 02/23/2022 GEN 75875* ANDREW JELLISON DEP REFUND/APPLIED 235-000- 00 17.50 02/23/2022 GEN 75878* BAILEY HOECHST OR TRENTON HAMILTON DEP REFUND/APPLIED 235-000- 00 52.50 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Payee Description Account Dept Page 26/39 Amount Fund: 2 GAS 02/23/2022 GEN 75879* BECCA GREEN OR TRENTON DRAEGER DEP REFUND/APPLIED 235-000- 00 80.50 02/23/2022 GEN 75880* BEN EWIAK DEP REFUND/APPLIED 235-000- 00 22.75 02/23/2022 GEN 75881* BIRCHDALE FIRE & SAFETY GROUNDS - OUTSIDE SERVICES 401-935- 08 72.14 02/23/2022 GEN 75882*4 BORDER STATES ELECTRIC SUPPLY CAP, FEMALE THRD, 1/4", BM, CLASS 150, 154-000- 00 1.49 CAP, FEMALE THRD, 1 1/2", BM, CLASS 150 154-000- 00 28. 62 PLUG, SQ HEAD, MALE THRD, 3/4", FORGED 154-000- 00 7.98 PLUG, SQ HEAD, MALE THRD, 1/2", FORGED 154-000- 00 1.84 NIPPLE, 3/4" X 6", BM, STD, SMLS, TEE 154-000- 00 24.64 NIPPLE 1" X 6", BM, STD, SMLS, TEE 154-000- 00 69.75 NIPPLE, 1" X 3 1/2", BM, STD, SMLS, TEE 154-000- 00 34.80 ANODES 41, MAG, HIGH POTENTIAL, 15-412 154-000- 00 93.44 NIPPLE, 3/4" X 2 1/2", BM, STD, SMLS, 154-000- 00 8.85 NIPPLE, 1/4" x 3 1/2", BM, STD, SMLS, 154-000- 00 9.96 NIPPLE, 3/4" X 3", STD, BM, SMLS, TEE 154-000- 00 13.72 WIRE, 410 SOLID BARE CU, WITH 45 MILS 154-000- 00 850.00 SALES TAX 401-874- 04 98.23 HECK GEN 75882 TOTAL FOR FUND 2: 1,243.32 02/23/2022 GEN 75887*4 CINTAS CORPORATION 4470 UNIFORMS & LAUNDRY 401-880- 04 207.67 UNIFORMS & LAUNDRY 401-880- 04 207.67 HECK GEN 75887 TOTAL FOR FUND 2: 415.34 02/23/2022 GEN 75888*4 CITY OF HUTCHINSON IT ADMIN AND SUPPORT 250 401-921- 08 4,489.53 Utility Expenses - Water/Waste 401-930- 08 17.00 Utility Expenses - Water/Waste 401-930- 08 384.94 HECK GEN 75888 TOTAL FOR FUND 2: 4,891.47 02/23/2022 GEN 75889* CONWAY DEUTH & SCHMIESING PLLP MISC SERVICES 401-923- 08 7,500.00 02/23/2022 GEN 75890 CRAIG DECKER Cip - Residential 401-916- 07 350.00 02/23/2022 GEN 75891 CYNTHIA ENTINGER Cip - Residential 401-916- 07 350.00 02/23/2022 GEN 75894* DUSTIN BOSKE DEP REFUND/APPLIED 235-000- 00 91.00 03/23/2022 03:09 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 27/39 User: JMartig CHECK DATE FROM 02/18/2022 - 03/23/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 2 GAS 02/23/2022 GEN 75895* EDUARDO HERNANDEZ DEP REFUND/APPLIED 235-000- 00 52.50 02/23/2022 GEN 75900* GLORIA E ARCE DEP REFUND/APPLIED 235-000- 00 140.00 02/23/2022 GEN 75901 GOP LINE - OUTSIDE SERVICES -INTERCONNECT 401-856- 05 2,000.00 02/23/2022 GEN 75902*4 GOPHER STATE ONE -CALL INC Materials 401-874- 04 8.10 Line - Outside Services 401-856- 05 1.35 HECK GEN 75902 TOTAL FOR FUND 2: 9.45 02/23/2022 GEN 75906*4 HILLYARD/HUTCHINSON Grounds - Materials 401-935- 08 121.67 02/23/2022 GEN 75908 HUTCHINSON CO-OP Vehicle/Equipment Fuel 401-880- 04 17.13 Vehicles - Material 402-895- 04 615.48 HECK GEN 75908 TOTAL FOR FUND 2: 632.61 02/23/2022 GEN 75909* HUTCHINSON LEADER Cip - Marketing 401-916- 07 110.25 02/23/2022 GEN 75911* INNOVATIVE OFFICE SOLUTIONS Office Supplies 401-921- 08 39.80 Misc Expense 401-930- 08 6,202.67 CHECK GEN 75911 TOTAL FOR FUND 2: 6,242.47 02/23/2022 GEN 75912* JACK RYAN DEP REFUND/APPLIED 235-000- 00 21.00 02/23/2022 GEN 75913* JACOB MEYER DEP REFUND/APPLIED 235-000- 00 70.00 02/23/2022 GEN 75914* JAMES CHAPMAN DEP REFUND/APPLIED 235-000- 00 129.50 02/23/2022 GEN 75916* JEANNE JOHNSON DEP REFUND/APPLIED 235-000- 00 70.00 02/23/2022 GEN 75917* JESSICA SULLIVAN DEP REFUND/APPLIED 235-000- 00 52.50 02/23/2022 GEN 75919* JOSHUA LOXTERCAMP OR JESSI DEP REFUND/APPLIED 235-000- 00 61.25 02/23/2022 GEN 75920* JOSHUA LOXTERCAMP OR JESSI DEP REFUND/APPLIED 235-000- 00 47.25 03/23/2022 03:09 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM 02/18/2022 - 03/23/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Fund: 2 GAS 02/23/2022 GEN 75922* JULIE NEWTON OR STAN NEWTON DEP REFUND/APPLIED 235-000- 00 02/23/2022 GEN 75923* KENDRA NEWCOMBE DEP REFUND/APPLIED 235-000- 00 02/23/2022 GEN 75925* KYLIE ROSENQUIST OR BRADLEY WOLFF DEP REFUND/APPLIED 235-000- 00 02/23/2022 GEN 75928* LOGAN WELTER DEP REFUND/APPLIED 235-000- 00 02/23/2022 GEN 75930* MANUEL PEREZ JR DEP REFUND/APPLIED 235-000- 00 02/23/2022 GEN 75931* MATT SANDEEN DEP REFUND/APPLIED 235-000- 00 02/23/2022 GEN 75932* MATTHEW BERGMANN DEP REFUND/APPLIED 235-000- 00 02/23/2022 GEN 75933* MATTHEW REINECCIUS DEP REFUND/APPLIED 235-000- 00 02/23/2022 GEN 75935*4 MCLEOD COOPERATVIE POWER ASSN MISC EXPENSE -GAS LINE PUMP 401-880- 04 UTILITIES (ELECTRIC, SATELLITE-MCLEOD 401-856- 05 HECK GEN 75935 TOTAL FOR FUND 2: 02/23/2022 GEN 75936* MEDICA 02/23/2022 GEN 75937* MICHAEL STRAUMANN 02/23/2022 GEN 75939* MINNESOTA SECRETARY OF STATE- 02/23/2022 GEN 75941* NATHANIEL SORENSEN 02/23/2022 GEN 75943* NICHOLAS KARELS 02/23/2022 GEN 75944* NICHOLAS SCHATZ 02/23/2022 GEN 75946 NOVASPECT INC HEALTH INSURANCE 15% GAS 242-000- 00 DEP REFUND/APPLIED 235-000- 00 Office Supplies 401-921- 08 DEP REFUND/APPLIED 235-000- 00 DEP REFUND/APPLIED 235-000- 00 DEP REFUND/APPLIED 235-000- 00 Fisher IN: 1J857827022, 1 - 5 PSIG 401-874- 04 Fisher IN: 1J857827022, 1 - 5 PSIG 401-874- 04 Fisher IN: T1027706992, Adjusting 402-892- 04 Fisher IN: T1027706992, Adjusting 402-892- 04 Page 28/39 Amount 131.25 21.00 38.50 91.00 28.00 17.50 91.00 24.50 92.06 131.70 8,813.38 59.50 30.00 80.50 35.00 52.50 180.00 24.60 12.00 03/23/2022 03:09 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 29/39 User: JMartig CHECK DATE FROM 02/18/2022 - 03/23/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 2 GAS HECK GEN 75946 TOTAL FOR FUND 2: 218.24 02/23/2022 GEN 75947* PATRICIA DALE DEP REFUND/APPLIED 235-000- 00 24.50 02/23/2022 GEN 75948* PHILLIP YUNGK DEP REFUND/APPLIED 235-000- 00 21.00 02/23/2022 GEN 75949* PREMIUM WATERS INC OFFICE SUPPLIES -BOTTLED WATER 401-921- 08 9.25 02/23/2022 GEN 75953 RINGELMAN, RYAN Cip - Residential 401-916- 07 300.00 02/23/2022 GEN 75954* ROBERT BROOKS OR CADI BROOKS DEP REFUND/APPLIED 235-000- 00 17.50 02/23/2022 GEN 75955* ROBERT MARTIN DEP REFUND/APPLIED 235-000- 00 59.50 02/23/2022 GEN 75956 RUNNING'S SUPPLY INC Materials 401-874- 04 30.08 Materials 401-874- 04 13.21 Materials 401-874- 04 16.17 Materials 401-874- 04 49.60 Materials 401-874- 04 49.60 HECK GEN 75956 TOTAL FOR FUND 2: 158.66 02/23/2022 GEN 75958* SHRED RIGHT OFFICE SUPPLIES -SHREDDING SERVICES 401-921- 08 4.26 02/23/2022 GEN 75960 SPRINT Utilities (Electric, Satellite 401-856- 05 133.00 02/23/2022 GEN 75961* STANDARD PRINTING & MAILING Office Supplies 401-921- 08 32.37 Office Supplies 401-921- 08 45.24 HECK GEN 75961 TOTAL FOR FUND 2: 77.61 02/23/2022 GEN 75962* TANNER GAGE DEP REFUND/APPLIED 235-000- 00 24.50 02/23/2022 GEN 75963* THEODORE CASE DEP REFUND/APPLIED 235-000- 00 29.75 02/23/2022 GEN 75964* TONY MOSENDEN OR KELLY PETERSON DEP REFUND/APPLIED 235-000- 00 94.50 02/23/2022 GEN 75966* UIS/SOURCECORP COLLECTION - MATERIALS 401-903- 06 184.90 COLLECTION - MATERIALS 401-903- 06 1,517.67 HECK GEN 75966 TOTAL FOR FUND 2: 1,702.57 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Description Fund: 2 GAS 02/23/2022 GEN 75967 VERIZON WIRELESS 02/23/2022 GEN 7597114 WEST CENTRAL SANITATION INC 02/23/2022 GEN 75974* ZOICA ESPERICUETA 02/28/2022 GEN 1014(E)*4 ALERUS Account Dept UTILITIES (ELECTRIC, SATELLITE-SCADA 401-856- 05 UTILITY ESP - WATER/WASTE 45/55- 401-930- 08 DEP REFUND/APPLIED 235-000- 00 HEALTH INSURANCE 02/28/2022 GEN 1019(E)* ALERUS HEALTH INSURANCE 03/01/2022 GEN 1012(E)* ARGUS DENTAL DENTAL INSURANCE-20o GAS 03/02/2022 GEN 1035(E)* CITIZENS BANK Office Supplies 03/02/2022 GEN 1036(E)* PAY MENTECH collection - Materials 03/09/2022 GEN 75975* A R ENGH HEATHING AND AIR COND, Grounds - Materials 03/09/2022 GEN 75976*4 ACE HARDWARE Materials 03/09/2022 GEN 75979* ANTHONY WEGNER DEP REFUND/APPLIED 03/09/2022 GEN 75980* ARROW GLASS Grounds - Materials 03/09/2022 GEN 75982*4 BORDER STATES ELECTRIC SUPPLY VALVE BOX, 6" WIDTH WITH 12" BELL, CAP, FEMALE THRD, 1", BM, CLASS 150 CAP, FEMALE THRD, 2", BM, CLASS 150 FLANGE, WELD NECK, FLAT FACED , 150 SALES TAX HECK GEN 75982 TOTAL FOR FUND 2: 03/09/2022 GEN 75983* BRANDON SHORE DEP REFUND/APPLIED 03/09/2022 GEN 75984* BRANDT ENTERPRISES DEP REFUND/APPLIED 03/09/2022 GEN 75985* BRITTANY BLOOM DEP REFUND/APPLIED 401-926- 08 242-000- 00 401-921- 08 401-903- 06 401-935- 08 401-874- 04 235-000- 00 401-935- 08 154-000- 00 154-000- 00 154-000- 00 154-000- 00 401-874- 04 235-000- 00 235-000- 00 235-000- 00 Page 30/39 Amount 117.18 215.14 59.50 ** VOIDED ** 129.38 155.70 70.59 1,552.79 143.50 50.41 140.00 825.13 677.70 26.30 34.75 216.30 46.59 1,001.64 63.00 385.00 70.00 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Payee Description Account Dept Page 31/39 Amount Fund: 2 GAS 03/09/2022 GEN 75986 BROWN COUNTY RURAL ELECTRIC Utilities (Electric, Satellite 401-856- 05 208.64 03/09/2022 GEN 75987* C O P SHOP LLC DEP REFUND/APPLIED 235-000- 00 175.00 03/09/2022 GEN 75988* CALEB BEILKE OR CODY ROSALES DEP REFUND/APPLIED 235-000- 00 122.50 03/09/2022 GEN 75989 CENTURYLINK Utilities (Electric, Satellite 401-856- 05 63.52 03/09/2022 GEN 75990*4 CINTAS CORPORATION 4470 UNIFORMS & LAUNDRY 401-880- 04 207.67 UNIFORMS & LAUNDRY 401-880- 04 280.36 HECK GEN 75990 TOTAL FOR FUND 2: 488.03 03/09/2022 GEN 75991*4 CITY OF HUTCHINSON VEHICLE/EQUIPMENT FUEL -GAS 401-880- 04 998. 94 VEHICLES/EQUIPMENT FUEL-ADMIN 55/45 401-935- 08 51.27 HECK GEN 75991 TOTAL FOR FUND 2: 1,050.21 03/09/2022 GEN 75992* CORY ROBINSON DEP REFUND/APPLIED 235-000- 00 87.50 03/09/2022 GEN 75994 COUNTY OF MCLEOD Materials 402-892- 04 204.00 03/09/2022 GEN 75997* DANIEL TORCHIA DEP REFUND/APPLIED 235-000- 00 73.50 03/09/2022 GEN 75998* DARLENE STCYR OR MISTY RICE DEP REFUND/APPLIED 235-000- 00 105.00 03/09/2022 GEN 75999* DAVID GLASER DEP REFUND/APPLIED 235-000- 00 17.50 03/09/2022 GEN 76000* DOWNTOWN CLOTHING DEP REFUND/APPLIED 235-000- 00 175.00 03/09/2022 GEN 76002* ELIZABETH HOFFMANN DEP REFUND/APPLIED 235-000- 00 26.25 03/09/2022 GEN 76003 ELLENSON, RYAN Materials 401-856- 05 417.56 Materials 401-856- 05 35.05 Public Awareness - Material 401-856- 05 55.83 HECK GEN 76003 TOTAL FOR FUND 2: 508.44 03/09/2022 GEN 760054 ENERTECH 2O22 Public Awareness Program for 401-874- 04 2,172.67 2022 Public Awareness Program for 416-108- 04 260.43 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Payee Description Account Dept Page 32/39 Amount Fund: 2 GAS Operating & Maint-Brownton 416-108- 04 14.00 2022 Public Awareness Program for 401-856- 05 500.97 HECK GEN 76005 TOTAL FOR FUND 2: 2,948.07 03/09/2022 GEN 76006* FAMILY & COSMETIC GENTLE DENTISTRY DEP REFUND/APPLIED 235-000- 00 17.50 03/09/2022 GEN 76008* FIRST CHOICE FOOD & BEVERAGE BREAKROOM/RECOGNITION BANQUET 401-926- 08 86.00 03/09/2022 GEN 76009*4 GOPHER STATE ONE -CALL INC Materials 401-874- 04 14.17 Line - Outside Services 401-856- 05 2.70 HECK GEN 76009 TOTAL FOR FUND 2: 16.87 03/09/2022 GEN 760124 GROEBNER & ASSOCIATES INC Sensus 700 GM AMI Modules 107-381- 00 2, 481.00 TAX & FREIGHT 401-874- 04 222.98 HECK GEN 76012 TOTAL FOR FUND 2: 2,703.98 03/09/2022 GEN 76013* H & R BLOCK DEP REFUND/APPLIED 235-000- 00 105.00 03/09/2022 GEN 76016* HEIDI HOLM DEP REFUND/APPLIED 235-000- 00 21.00 03/09/2022 GEN 76017* HENNINGSGAARD, JENNA Cip - Residential 401-916- 07 50.00 03/09/2022 GEN 76019* HUTCHFIELD SERVICES INC Grounds - Outside Services 401-935- 08 955.93 03/09/2022 GEN 76020*4 HUTCHINSON LEADER Cip - Marketing 401-916- 07 110.25 Advertising/Printing 401-921- 08 170.18 HECK GEN 76020 TOTAL FOR FUND 2: 280.43 03/09/2022 GEN 76021 HUTCHINSON WHOLESALE SUPPLY CO Materials 401-874- 04 55.10 03/09/2022 GEN 76022* INNOVATIVE OFFICE SOLUTIONS Office Supplies 401-921- 08 28.60 03/09/2022 GEN 76024* JACQUE SCHMIT DEP REFUND/APPLIED 235-000- 00 42.00 03/09/2022 GEN 76026* JOELLE SCHLUETER DEP REFUND/APPLIED 235-000- 00 22.75 03/23/2022 03:09 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM 02/18/2022 - 03/23/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Fund: 2 GAS 03/09/2022 GEN 76027* JON SUEDBECK DEP REFUND/APPLIED 235-000- 00 03/09/2022 GEN 76028* JULIE JOHANSEN OR MIKE JOHANSEN DEP REFUND/APPLIED 235-000- 00 03/09/2022 GEN 76029* KEITH BRULLA DEP REFUND/APPLIED 235-000- 00 03/09/2022 GEN 76030* KEVIN HOLTZ DEP REFUND/APPLIED 235-000- 00 03/09/2022 GEN 76031* KNODEL, MIKE Cip - Residential 401-916- 07 03/09/2022 GEN 76032* KURT DAHLQUIST DEP REFUND/APPLIED 235-000- 00 03/09/2022 GEN 76033* LAURA WEIKLE OR NATHAN STOWMAN DEP REFUND/APPLIED 235-000- 00 03/09/2022 GEN 76034* LIEN, MIKE Cip - Residential 401-916- 07 03/09/2022 GEN 76035* M. R. AG INC DEP REFUND/APPLIED 235-000- 00 03/09/2022 GEN 76036* MARCO TECHNOLOGIES, LLC OFFICE SUPPLIES 401-921- 08 03/09/2022 GEN 76040* MEGAN HAAS DEP REFUND/APPLIED 235-000- 00 03/09/2022 GEN 76043 MILLER, MARLYS Cip - Residential 401-916- 07 03/09/2022 GEN 760454 MRC GLOBAL Yale Figure 515 Closure, Cap and Hub - 107-378- 00 TAX & FREIGHT 401-874- 04 HECK GEN 76045 TOTAL FOR FUND 2: 03/09/2022 GEN 76046* NATHANIEL SAUTER 03/09/2022 GEN 76047 NELSON TECHNOLOGIES INC 03/09/2022 GEN 76048* NICHOLAS TCHIDA 03/09/2022 GEN 76049 NORTHERN BORDER PIPELINE CO 03/09/2022 GEN 76050* NUVERA DEP REFUND/APPLIED 235-000- 00 Dresser P/N# 060726-060 400 ETC 402-892- 04 DEP REFUND/APPLIED 235-000- 00 LINE - OUTSIDE SERVICES -INTERCONNECT 401-856- 05 TELEPHONE 401-921- 08 Page 33/39 Amount 17.50 108.50 21.00 63.00 400.00 70.00 70.00 50.00 105.00 173.89 31.50 350.00 658.19 71.36 729.55 133.00 5,047.66 42.00 2,000.00 644.34 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Payee Description Account Dept Page 34/39 Amount Fund: 2 GAS 03/09/2022 GEN 7605114 OXYGEN SERVICE COMPANY INC Materials 401-874- 04 91.80 Materials 401-874- 04 68.44 HECK GEN 76051 TOTAL FOR FUND 2: 160.24 03/09/2022 GEN 76052* PAMELA COATHUP OR THOMAS COATHUP GET REFUND/APPLIED 235-000- 00 21.00 03/09/2022 GEN 76053* PHILIP BLAZINSKI GET REFUND/APPLIED 235-000- 00 17.50 03/09/2022 GEN 76054 PRO AUTO & TRANSMISSION REPAIR Vehicles - Material 402-895- 04 788.95 03/09/2022 GEN 76056* RELIANCE STANDARD LIFE -LIFE LTD INSURANCE-20o GAS 242-000- 00 391. 42 LIFE INSURANCE-20o GAS 242-000- 00 205.26 HECK GEN 76056 TOTAL FOR FUND 2: 596.68 03/09/2022 GEN 76057* RICK'S J & R REPAIR & RADIATOR GET REFUND/APPLIED 235-000- 00 616.00 03/09/2022 GEN 76058 RIGELMAN, RYAN Cip - Residential 401-916- 07 50.00 03/09/2022 GEN 76059* RIVER ROAD MGNT DBA FANTASTIC SAMS GET REFUND/APPLIED 235-000- 00 455.00 03/09/2022 GEN 76062* SALVATION ARMY GET REFUND/APPLIED 235-000- 00 87.50 03/09/2022 GEN 76063* SCOTT JASTER GET REFUND/APPLIED 235-000- 00 52.50 03/09/2022 GEN 76064* SHARON WERSAL GET REFUND/APPLIED 235-000- 00 21.00 03/09/2022 GEN 76065* SHARON WERSAL GET REFUND/APPLIED 235-000- 00 17.50 03/09/2022 GEN 76066* SHRED RIGHT OFFICE SUPPLIES -SHREDDING SERVICES 401-921- 08 4.26 03/09/2022 GEN 76067 SOUTH CENTRAL ELECTRIC ASS'N UTILITIES (ELECTRIC, SATELLITE 401-856- 05 33.00 03/09/2022 GEN 76068* STANDARD PRINTING & MAILING Office Supplies 401-921- 08 272.80 03/09/2022 GEN 76069* STEPHEN SWANSON GET REFUND/APPLIED 235-000- 00 35.00 03/09/2022 GEN 76070* STEVE KLAMMER GET REFUND/APPLIED 235-000- 00 31.50 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Payee Description Account Dept Page 35/39 Amount Fund: 2 GAS 03/09/2022 GEN 76071* TRANS LEASE/SERVICE AGREEMENTS 401-921- 08 341.31 03/09/2022 GEN 76073* UNITED PARCEL SERVICE MAIL SERVICES - UPS, FEDEX 401-921- 08 48.66 03/09/2022 GEN 76074* VAN IWAARDEN ASSOCIATES Misc Services 401-923- 08 540.00 03/09/2022 GEN 76075* VERIZON WIRELESS TELEPHONE 401-921- 08 418.87 03/09/2022 GEN 76077 WSB Project Management, Meetings & 401-856- 05 3,070.20 Line - Outside Services 401-856- 05 1.80 HECK GEN 76077 TOTAL FOR FUND 2: 3,072.00 03/15/2022 GEN 1034(E)* INVOICE CLOUD collection - Materials 401-903- 06 1,974.36 03/16/2022 GEN 1018(E)*4 VISA Vehicles - Material 402-895- 04 156.02 Vehicles - Material 402-895- 04 0.73 Office Supplies 401-921- 08 50.77 Training - Expense 401-930- 08 380.00 Grounds - Materials 401-935- 08 39.77 Grounds - Materials 401-935- 08 0.18 HECK GEN 1018(E) TOTAL FOR FUND 2: 627.47 03/18/2022 GEN 1029(E)*4 BP CANANDA ENERGY SOLUTIONS GAS FOR RETAIL 401-807- 04 1,781.80 GAS FOR RETAIL 401-807- 04 219,258.12 3M 401-807- 04 425,899.24 HTI 401-807- 04 47,744.12 UNG 401-807- 04 11,611.24 BROWNTON 401-807- 04 22,116.62 Utility Expenses - Water/Waste 401-930- 08 5,336.59 HECK GEN 1029(E) TOTAL FOR FUND 2: 733,747.73 03/18/2022 GEN 1030(E) PUBLIC ENERGY AUTHORITY OF Gas For Retail 401-807- 04 528,010.56 HTI 401-807- 04 168.00 HECK GEN 1030(E) TOTAL FOR FUND 2: 528,178.56 03/22/2022 GEN 1032(E)* MINNESOTA REVENUE State Sales Tax 242-000- 00 20,656.00 City Sales Tax 242-000- 00 1,460.00 COUNTY SALES TAX 242-000- 00 1, 460.00 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Payee Description Account Dept Page 36/39 Amount Fund: 2 GAS HECK GEN 1032(E) TOTAL FOR FUND 2: 23,576.00 03/23/2022 GEN 7608214 ACE HARDWARE Materials 401-874- 04 46.99 Power Equipment - Materials 402-895- 04 12.38 Misc Expenses 401-935- 08 26.03 HECK GEN 76082 TOTAL FOR FUND 2: 85.40 03/23/2022 GEN 76084*4 BORDER STATES ELECTRIC SUPPLY BRACKET, WALL MT RISER, 2", REFER TO 154-000- 00 179.68 NIPPLE, 3/4" X 3 1/2", BM, STD, SMLS, 154-000- 00 15.61 NIPPLE, 1" X 4", BM, STD, SMLS, TEE 154-000- 00 26.76 NIPPLE, 1" X 5", BM, STD, SMLS, TEE 154-000- 00 28.82 NIPPLE, 1/2"X 3", BM, STD, SMLS, TEE 154-000- 00 6.60 NIPPLE, 1" X 4 1/2", BM, STD, SMLS, TEE 154-000- 00 88.00 THREAD-0-LET, 1/4" X 2 1/2" X 1 1/4", 154-000- 00 51.76 VALVE, METER, 1", INS, LOCKWING, PLG 154-000- 00 125.24 VALVE, BALL, 1/4", BALON, LM - 02362, 154-000- 00 113.20 Natural Gas Inventory 154-000- 00 66.93 NIPPLE, 1/2" X 2", BM, STD, SMLS, TEE 154-000- 00 5.80 TEE, TAPPING, 2" X 3/4" IPS, SIR 11, 154-000- 00 329.20 TEE, TAPPING, 4" X 3/4" IPS, SIR 11, 154-000- 00 170.60 COUPLING, 3/4" IPS, EF, MDPE 154-000- 00 110.60 NIPPLE, 1/4" X 2", BM, STD, SMLS, TEE 154-000- 00 7.41 SALES TAX 401-874- 04 12.35 SALES TAX 401-874- 04 11.39 SALES TAX 401-874- 04 3.56 SALES TAX 401-874- 04 16.39 BATTERY, SIZE C 401-874- 04 93.60 SALES TAX 401-874- 04 50.89 BATTERY, SIZE D 401-874- 04 73.44 SALES TAX 401-874- 04 0.51 HECK GEN 76084 TOTAL FOR FUND 2: 1,588.34 03/23/2022 GEN 76086*4 CINTAS CORPORATION 4470 UNIFORMS & LAUNDRY 401-880- 04 207.67 UNIFORMS & LAUNDRY 401-880- 04 207.67 HECK GEN 76086 TOTAL FOR FUND 2: 415.34 03/23/2022 GEN 76087*4 CITY OF HUTCHINSON IT ADMIN AND SUPPORT 250 401-921- 08 693.55 Utility Expenses - Water/Waste 401-930- 08 7.05 Utility Expenses - Water/Waste 401-930- 08 403.69 03/23/2022 03:09 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee Fund: 2 GAS CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2022 - 03/23/2022 Description 03/23/2022 GEN 76088* CROW RIVER FLORAL 03/23/2022 GEN 76089 CRYSTEEL TRUCK EQUIPMENT 03/23/2022 GEN 76094* ECKHART, BRUCE 03/23/2022 GEN 76097 GROEBNER & ASSOCIATES INC HECK GEN 76087 TOTAL FOR FUND 2: Office Supplies Power Equipment - Materials Cip - Residential FREIGHT & SALES TAX Third Party Damage - Gas ATT30/35/57 REPAIR HP Refurb 2"-6" HECK GEN 76097 TOTAL FOR FUND 2: Account Dept 401-921- 08 402-895- 04 401-916- 07 401-874- 04 416-107- 04 416-108- 04 416-108- 04 Page 37/39 Amount 1,104.29 31.25 1,008.25 350.00 629. 17 487.09 3,232.42 7,129.02 03/23/2022 GEN 76098* HAGER JEWELRY INC Office Supplies 401-921- 08 8.98 03/23/2022 GEN 76099 HERZOG, EVA Cip - Residential 401-916- 07 25.00 03/23/2022 GEN 76100* HILLYARD/HUTCHINSON Grounds - Materials 401-935- 08 109.04 03/23/2022 GEN 76101* HOTSY EQUIPMENT OF MINNESOTA Grounds - Materials 401-935- 08 374.99 03/23/2022 GEN 76102* HUTCHINSON HEALTH Misc Expenses 401-935- 08 72.45 03/23/2022 GEN 76103* HUTCHINSON JAYCEES WATER CARNIVAL CIP - MARKETING 401-916- 07 312.50 03/23/2022 GEN 76104*4 HUTCHINSON WHOLESALE SUPPLY CO Power Equipment - Materials 402-895- 04 105.10 Power Equipment - Materials 402-895- 04 55.82 Power Equipment - Materials 402-895- 04 128.10 HECK GEN 76104 TOTAL FOR FUND 2: 289.02 03/23/2022 GEN 76105* INNOVATIVE OFFICE SOLUTIONS Office Supplies 401-921- 08 52.04 03/23/2022 GEN 76107* JOHNSON, NATE Cip - Residential 401-916- 07 400.00 03/23/2022 GEN 76108* JOSSART, PAUL Cip - Residential 401-916- 07 50.00 03/23/2022 GEN 76110 L & P SUPPLY COMPANY Power Equipment - Materials 402-895- 04 111.50 03/23/2022 03:09 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 38/39 User: JMartig CHECK DATE FROM 02/18/2022 - 03/23/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 2 GAS 03/23/2022 GEN 761114 MCLEOD COOPERATVIE POWER ASSN MISC EXPENSE -GAS LINE PUMP 401-880- 04 81.41 UTILITIES (ELECTRIC, SATELLITE -PIPELINE 401-856- 05 39.48 UTILITIES (ELECTRIC, SATELLITE-MCLEOD 401-856- 05 38.66 HECK GEN 76111 TOTAL FOR FUND 2: 159.55 03/23/2022 GEN 76112* MEDICA HEALTH INSURANCE 15% GAS 242-000- 00 9,237.39 03/23/2022 GEN 76115*4 NORTHERN STATES SUPPLY INC Materials 401-874- 04 28.07 03/23/2022 GEN 76116 NIL CONSTRUCTION CO Mains 107-367- 00 14,253.96 03/23/2022 GEN 76117 NIL CONSTRUCTION CO Electric Services - Material 416-105- 04 4,499.46 03/23/2022 GEN 76118*4 OXYGEN SERVICE COMPANY INC Materials 401-874- 04 52.06 03/23/2022 GEN 761194 PARADIGM LIAISON SERVICES, LLC Operating & Maint-Brownton 416-108- 04 610.00 Public Awareness - Material 401-856- 05 3,660.00 HECK GEN 76119 TOTAL FOR FUND 2: 4,270.00 03/23/2022 GEN 76120* PREMIUM WATERS INC OFFICE SUPPLIES -BOTTLED WATER 401-921- 08 1.00 03/23/2022 GEN 76121 PROFESSIONAL ENGINEERING SERVICES Materials 401-856- 05 18,975.00 03/23/2022 GEN 76123* RELIANCE STANDARD LIFE -LIFE LTD INSURANCE-20o GAS 242-000- 00 391.42 LIFE INSURANCE-20o GAS 242-000- 00 220.74 HECK GEN 76123 TOTAL FOR FUND 2: 612.16 03/23/2022 GEN 76128* SKOGLUND DIRKSEN, ARDIS Cip - Residential 401-916- 07 350.00 03/23/2022 GEN 76129 SPRINT Utilities (Electric, Satellite 401-856- 05 133.00 03/23/2022 GEN 76130* STANDARD PRINTING & MAILING Mail Services - Ups, Fedex 401-921- 08 18.76 03/23/2022 GEN 76135 VERIZON WIRELESS UTILITIES (ELECTRIC, SATELLITE-SCADA 401-856- 05 117.15 03/23/2022 GEN 76136* VIK'S LANDSCAPING & LAWN CARE, INC GROUNDS - OUTSIDE SERVICES 401-935- 08 916.85 03/23/2022 GEN 76137 WALTERS, TIM Cip - Residential 401-916- 07 25.00 03/23/2022 GEN 76138*4 WEST CENTRAL SANITATION INC UTILITY ESP - WATER/WASTE 45/55- 401-930- 08 217.85 03/23/2022 03:09 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 39/39 User: JMartig CHECK DATE FROM 02/18/2022 - 03/23/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 2 GAS Total for fund 2 GAS 2,909,664.52 TOTAL - ALL FUNDS 5,987,420.98 --INDICATES CHECK DISTRIBUTED TO MORE THAN ONE FUND '#'-INDICATES CHECK DISTRIBUTED TO MORE THAN ONE DEPARTMENT December 31, 2021 Independent Auditor's Report Pages 2-4: 9 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 (Contd) 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 36-43) 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 2021 2020 $ 30,558,392 $ 31,262,932 3,688,606 3,680,239 75,539,658 76,734,063 109, 786, 656 111, 677, 234 $ 111,960,984 $ 112,094,790 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Liabilities Current Liabilities $ 3,266,278 $ 3,098,734 Long -Term Liabilities 29,488,463 33,000,428 Total Liabilities 32,754,741 36,099,162 Deferred Inflows of Resources 2,721,857 164,556 Net Position Net Investment in Capital Assets Unrestricted Total Net Position Total Liabilities. Deferred Inflows of Resources and Net Position 53,543,167 52,270,140 22,941,219 23,560,932 76,484,386 75,831,072 $ 111,960,984 $ 112,094,790 Cash and Investment Balances ,,r 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 7n71 0n0n $ 44, 902, 853 $ 37, 980, 837 5,052,088 3,483,546 23, 251, 254 18, 424, 450 6,738,408 6,128, 047 2,398,712 2,278,129 4,431,549 3,893,094 1 Pr,7 1 ao 1 Pr,7 1 ao 1,163, 650 1, 906, 379 (510,336) 1,800,759 653,314 3,707,138 75,831,072 72,123,934 $ 76, 484, 386 $ 75, 831, 072 Electric Division ,,r Electric Division $1,600,000 $1,100,000 $600,000 $100,000 $(400,000) $(900,000) 2017 ■ Change in Net $(277,320) Position 2018 $(173,713) 2019 $ (251, 604) 2020 $1,588, 662 2021 $(534,429) CDS Revenue per KWH Year Ended December 31, 2021 Revenue Fbr Amount KWH Sold KWH CLASS Residential $ 5,742,436 53,638,433 $ 0.1071 All Electric 271,451 2,583,825 0.1051 Small General Service 1,875,538 17,994,115 0.1042 Large General Service 7,856,315 85,403,880 0.0920 Industrial 9,524,147 120,065,000 0.0793 Sale for Resale 4,221,535 19,706,000 0.2142 Street Lighting 137,710 97,742 1.4089 $ 29,629,132 299,488,995 0.0989 Year Ended December 31, 2020 Revenue Fbr 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 CDS Natural Gas Division $15, 500, 000 $13, 500, 000 $11, 500, 000 $9,500,000 $7,500,000 $5,500,000 $3,500,000 $1, 500,000 $ (500,000) onnnnnnm ........ ..... 2017 2018 2019 2020 2021 ■Total Operating Revenues $12,378,636 12,747,746 12,409,516 11,520,221 15,206,824 IN Total Operating Expenses 10,126,029 9,323,004 9,848,199 9,557,629 13,854,673 IIIIII Net Nonoperating Revenues (Expenses) (403,706) (192,296) (22,470) 155,884 (164,408) Natural Gas Division $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2017 2018 2019 2020 2021 ■ Change in Net Position $1,848,901 $3,232,446 $2,538,847 $2,118,476 $1,187,743 Revenue per MCF Year Ended December 31, 2021 Revenue Per Thousand Amount CF Sold MCF CLASS Residential $ 4,639,771 391, 997, 679 $ 11.8362 Commercial 3,469,964 302, 691, 207 11.4637 Large industrial 5,334,891 861,030,863 6.1959 $ 13, 444, 626 1, 555, 719, 749 $ 8.6421 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 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 Upcoming Government Auditing Standards Board Statement No. 87, Leases Questions or Comments? Contact information: Justin McGraw, CPA °irnc ira c,sc aac0irn 320-693-7975 HUTCHINSON UTILITIES COMMISSION MANAGEMENT LETTER DECEMBER 31, 2021 CONWAY, DEUTH & SCHMIESING, PLLP CPAS & ADVISORS LITCHFIELD, MINNESOTA This page intentionally left blank HUTCHINSON UTILITIES COMMISSION TABLE OF CONTENTS DECEMBER 31, 2021 gdeft Required Communications 1-3 Comparative Financial Data 4 Graphical Information 5-12 Schedule of Findings on Accounting Issues and Internal Controls 13 This page intentionally left blank 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, 2021. 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 12, 2022. 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 2021. 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. .O Box 570 y. w, y, • M.. 0 II i Litchfield Office 820 Sibley Ave N Utchfied, MIN 55355 (3 0) 693-7975 www.cdscpa.colirmf OfficeSartelt Ste 1 �rr � Members: American Institute of Certified Public Accountants, Minnesota Society of Certified 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 30, 2022. 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(,nu.& j, Der c irrzi Sii , �� CONWAY, DEUTH & SCHMIESING, PLLP CPAS & ADVISORS LITCHFIELD, MINNESOTA March 30, 2022 3 This page intentionally left blank 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 2017 2018 2019 2020 2021 $ 5,341,820 $ 5,601,482 $ 5,638,725 $ 5,692,685 $ 6,013,887 9,050,034 9,523,924 9,566,730 8,911,119 9,731,853 10,778,629 10,218,577 9,667,324 8,963,654 9,524,147 147,484 147,470 147,456 141,886 137,710 2,171,853 3,071,099 2,773,852 2,709,012 4,221,535 27,489,820 28,562,552 27,794,087 26,418,356 29,629,132 167,159 182,837 188,505 42,260 66,897 27,656,979 28,745,389 27,982,592 26,460,616 29,696,029 15,062,252 15,680,416 14,272,870 13,172,097 14, 708,086 12,863, 710 13,017,890 13, 721,828 13,344, 732 15,176,444 27,925,962 28,698,306 27,994,698 26,516,829 29,884,530 (8,337) (283,198) (239,498) 1,644,875 (345,928) $ (277,320) $ (236,115) $ (251,604) $ 1,588,662 $ (534,429) $ 3,937,048 $ 4,139,639 $ 3,981,709 $ 3,663,453 $ 4,639,771 3,019,230 3,070,904 2,974,834 2,597,225 3,469,964 3,842,863 3,870,184 3,679,891 3,539,863 5,334,891 10,799,141 11,080,727 10,636,434 9,800,541 13,444,626 1,579,495 1,667,019 1,773,082 1,719,680 1,762,198 12,378,636 12,747,746 12,409,516 11,520,221 15,206,824 6,883,154 6,084,090 5,961,040 5,588,511 9,830,566 3,242,875 3,259,715 3,887,159 3,969,118 4,024,107 10,126,029 9,343,805 9,848,199 9,557,629 13,854,673 (403,706) (192,296) (22,470) 155,884 (164,408) Change in Net Position $ 1,848,901 $ 3,211,645 $ 2,538,847 $ 2,118,476 $ 1,187,743 HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION Operating Revenues & Expenses and Net Nonoperating Revenues (Expenses) $35,000,000 530 $30,000,000 $27,656,979 $28,698,306 $27,982,592 $27,994,698 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 $ (8, 337) $ (283,198) $ (239, 498) $345, 928) -$5,000,000 2017 2018 2019 2020 2021 BTotal Operating Revenues ®Total Operating Expenses ®Net Nonoperating Revenues (Expenses) $28,745,389 $29,696,029 $29,884 $26,460,616 $26,516,829 $27,925,962 $1,644,875 Change in Net Position $2,000,000 $1,588,662 $1,500,000 $1,000,000 $500,000 $0 $ (277, 320) $ (236,115) $ (251, 604) -$500,000 $ (534, 429) -$1,000,000 2017 2018 2019 2020 2021 BChange in Net Position 5 $28,745,389 $29,696,029 $29,884 $26,460,616 $26,516,829 $27,925,962 $1,644,875 Change in Net Position $2,000,000 $1,588,662 $1,500,000 $1,000,000 $500,000 $0 $ (277, 320) $ (236,115) $ (251, 604) -$500,000 $ (534, 429) -$1,000,000 2017 2018 2019 2020 2021 BChange in Net Position 5 Change in Net Position $2,000,000 $1,588,662 $1,500,000 $1,000,000 $500,000 $0 $ (277, 320) $ (236,115) $ (251, 604) -$500,000 $ (534, 429) -$1,000,000 2017 2018 2019 2020 2021 BChange in Net Position 5 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 2017 2018 2019 2020 2021 ■Residential ®General Service 0Industrial Purchased Power & Fuel Costs Compared to Total Sales $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 2017 2018 2019 2020 2021 BPurchased Power - Electric ®Total Electric Sales HUTCHINSON UTILITIES COMMISSION ANALYSIS OF OPERATIONS ELECTRIC DIVISION YEARS ENDED DECEMBER 31, 2021 AND 2020 The Statement of Revenues and Expenses set forth the results of the operations in detail for the years ended December 31, 2021 and 2020. Operating revenues, kilowatt hours (KWH) sold, and average revenue per kilowatt hour sold by class of service are as follows: Year Ended December 31, 2021 Revenue Per Amount KWH Sold KWH CLASS Residential $ 5,742,436 $ 53,638,433 $ 0.1071 All Electric 271,451 2,583,825 0.1051 Small General Service 1,875,538 17,994,115 0.1042 Large General Service 7,856,315 85,403,880 0.0920 Industrial 9,524,147 120,065,000 0.0793 Sale for Resale 4,221,535 19,706,000 0.2142 Street Lighting 137,710 97,742 1.4089 $ 29,629,132 299,488,995 $ 0.0989 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 7 HUTCHINSON UTILITIES COMMISSION ANALYSIS OF OPERATIONS ELECTRIC DIVISION YEARS ENDED DECEMBER 31, 2021 AND 2020 KWH Sold 97,742 Street Lighting 95,141 19,706,000 Sale for Resale g 746,000 Industrial Large General Service Small General Service All Electric Residential Street Lighting Sale for Resale Industrial Large General Service Small General Service All Electric Residential 17, 994,115 IN 17, 672, 005 2,583,825 2,619,180 $53,638,433 $53,026,200 120,065,000 116,965,000 85,403,880 0 50,000,000 100,000,000 150,000,000 200,000,000 2021 KWH Sold 02020 KWH Sold Average $/KWH $1.4089 $1.4913 $0.2142 $0.3097 $0.0793 $0.0766 $0.0920 $0.0909 $0.1042 $0.1000 $0.1051 $0.1000 $0.1071 $0.1024 I.00 $0.50 $1.00 $1.50 $2.00 2021 Revenue Per KWH 02020 Revenue Per KWH $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 HUTCHINSON UTILITIES COMMISSION NATURAL GAS DIVISION Operating Revenues & Expenses and Net Nonoperating Revenues (Expenses) $15, 206, 824 $13, 854, $12, 378, 636 $12, 747, 746 $12, 409, 516 $11,520,221 $10,126, 029 $9, 343, 805 $9, 848,199 $9, 557, 629 $155, 884 LLM $(403,706) $(192,296) $(22,470) $(16, -$2,000,000 2017 2018 2019 2020 2021 BTotal Operating Revenues ®Total Operating Expenses ®Net Nonoperating Revenues (Expenses) 373 408) Change in Net Position $3, 500, 000 $3,211,645 $3, 000, 000 $2,538,847 500, 000 $2, $2,118, 476 $1,848,901 000, 000 $2, $1,500,000 $1,187, 743 $1,000,000 $500,000 $0 2017 2018 2019 2020 2021 BChange in Net Position I HUTCHINSON UTILITIES COMMISSION NATURAL GAS DIVISION Major Revenue by Source $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2017 2018 2019 2020 2021 BResidential ®Commercial 0Industrial Purchased Gas Compared to Total Sales $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8, 000, 000 $6, 000, 000 $4, 000, 000 $2, 000, 000 $0 2017 2018 2019 2020 2021 ■Purchased Power - Gas ®Total Gas Revenues 10 HUTCHINSON UTILITIES COMMISSION ANALYSIS OF OPERATIONS NATURAL GAS DIVISION YEARS ENDED DECEMBER 31, 2021 AND 2020 The Statement of Revenues and Expenses set forth the results of the operations in detail for the years ended December 31, 2021 and 2020. Operating revenues, cubic feet sold, and average revenue per thousand cubic feet sold by class of service are as follows: Year Ended December 31, 2021 Revenue Per Thousand Amount CF Sold MCF CLASS Residential $ 4,639,771 $ 391,997,679 $ 11.8362 Commercial 3,469,964 302,691,207 11.4637 Large Industrial 5,334,891 861,030,863 6.1959 $ 13,444,626 1,555,719,749 $ 8.6421 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 11 HUTCHINSON UTILITIES COMMISSION ANALYSIS OF OPERATIONS NATURAL GAS DIVISION YEARS ENDED DECEMBER 31, 2021 AND 2020 CF Sold 861,030,863 Large Industrial 878,793,137 302,691,207 Commercial 309,545,384 391,997,679 Residential 406,278,411 p V13 a°° Epp 4p0 �°p 000 6p° a°° 0°° ap° P°° 9°p N pp° °°° M2021 CF Sold M2020 CF Sold Average $/MCF $6.1959 Large Industrial $4.0281 $11.4637 Commercial $8.3904 $11.8362 Residential $9.0171 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 M2021 Revenue per 1000 MCF M2020 Revenue Per 1000 MCF 12 This page intentionally left blank HUTCHINSON UTILITIES COMMISSION SCHEDULE OF FINDINGS ON ACCOUNTING ISSUES AND INTERNAL CONTROLS DECEMBER 31, 2021 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. UPCOMING GOVERNMENT ACCOUNTING STANDARDS BOARD STATEMENT NO. 87, LEASES The Governmental Accounting Standards Board (GASB) issued Statement No. 87, Leases, to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by govern ments.This Statement establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. The Statement is effective for fiscal years beginning after June 15, 2021. We recommend that management of the Commission begin the process of evaluating the impact of implementation of this standard. Changes may be necessary to your financial records and it will benefit the Commission to begin this process now. If requested, Conway, Deuth and Schmiesing, PLLP will assist in the implementation. These services will be billed separate from, and in addition to, your annual audit engagement fees. Please contact us with any questions. 13 HUTCHINSON UTILITIES COMMISSION AUDITED FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION DECEMBER 31, 2021 CONWAY, DEUTH & SCHMIESING, PLLP CPAS & ADVISORS LITCHFIELD, MINNESOTA This page intentionally left blank HUTCHINSON UTILITIES COMMISSION TABLE OF CONTENTS DECEMBER 31, 2021 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 14-35 36 37 38 39-43 44 45 46-47 48 49-51 52 53-55 HUTCHINSON UTILITIES COMMISSION TABLE OF CONTENTS DECEMBER 31, 2021 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 REP 57-58 59 HUTCHINSON UTILITIES COMMISSION ORGANIZATIONAL DATA DECEMBER 31, 2021 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: Matt Cheney President Anthony Hanson Vice President Don Martinez Secretary Monty Morrow Commissioner Robert Wendorff Commissioner This page intentionally left blank INDEPENDENT AUDITOR'S REPORT Members of the Hutchinson Utilities Commission Hutchinson, Minnesota Report on the Audit of the Financial Statements Opinions 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, 2021 and the related notes to the financial statements, which collectively comprise the Commission's basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the business -type activities of the Commission, as of December 31, 2021, and the respective changes in financial position, and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Commission, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Report on Partial Comparative Information We have previously audited the Commission's 2020 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated March 31, 2021. In our opinion, the partial comparative information presented herein as of and for the year ended December 31, 2020 is consistent, in all material respects, with the audited financial statements from which it has been derived. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. Sart�ell Office Ste 0 W www,cdscpa.c rn Members: American Institute of Certified Public Accountants, Minnesota Society of Certified Public Accountants In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Commission's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit 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 Commission's internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Commission's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. 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 is the responsibility of management and, 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 Information Our audit was conducted for the purpose of forming opinions 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 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such 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. The 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. Other Information Management is responsible for the other information included in the annual report. The other information comprises the organizational data section but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 30, 2022 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. (,t7U&J, Z)k ar ,;&sl , 7'� CONWAY, DEUTH & SCHMIESING, PLLP CPAS & ADVISORS LITCHFIELD, MINNESOTA March 30, 2022 4 This page intentionally left blank REQUIRED SUPPLEMENTARY INFORMATION This page intentionally left blank HUTCHINSON UTILITIES COMMISSION MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2021 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 informatior 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 $158,398,640 in 2021 from $155,497,559 in 2020. Capital assets increased $2,901,081 primarily because of upgrades and improvements to the generating plant and distribution systems as well as equipment purchases. Operating revenues increased and operating income decreased from 2020 by $6,922,016 and $742,729, respectively. Operating expenses increased from 2020 by $7,664,745. The primary increase in operating revenues was due to an increase in electric and gas sales in 2021, which increased by $3,210,776 and $3,644,085, respectively, from 2020. The primary area of the increase in operating expenses was due to an increase in purchased power/gas expenses caused by higher market pricing. 5 HUTCHINSON UTILITIES COMMISSION MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2021 Significant Transactions In 2021, the Commission transferred $1,867,192 per agreement to the City of Hutchinson. Condensed Financial Statements A summary of the Statement of Net Position is presented in Table 1. Table 1 Condensed Statement of Net Position 2021 2020 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 Total Liabilities, Deferred Inflows of Resources and Net Position $ 30,558,392 $ 31,262,932 $ 3,688,606 3,680,239 75,539,658 76,734,063 109,786,656 111,677,234 2,174,328 417,556 $ 111,960,984 $ 112,094,790 $ $ 3,266,278 $ 3,098,734 $ 29,488,463 33,000,428 _ 32,754,741 36,099,162 2,721,857 164,556 Increase Decrease) (704,540) 8,367 (1,194,405) (1,890,578) 1,756,772 33,8 167,544 (3,511,965) (3,344,421) 2,557,301 53,543,167 52,270,140 1,273,027 22,941,219 23,560,932 (619,713) 76,484,386 75,831,072 653,314 $ 111,960,984 $ 112,094,790 A 33,8 HUTCHINSON UTILITIES COMMISSION MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2021 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 2021 2020 (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 $ 44,902,853 $ 37,980,837 $ 6,922,016 39,307,654 32,181,364 7,126,290 4,431,549 3,893,094 538,455 43,739,203 36,074,458 7,664,745 1,163,650 1,906,379 (742,729) (510,336) 1,800,759 (2,311,095) 653,314 3,707,138 (3,053,824) 75,831,072 72,123,934 3,707,138 $ 76,484,386 $ 75,831,072 $ 653,314 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 2021 Budget Analysis is presented in Table 3. 7 HUTCHINSON UTILITIES COMMISSION Budgetary Highlights (Cont'd) MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2021 Table 3 Condensed Budget Analysis 2021 Budget 2021 Actual Over (Under) Operating Revenues $ 40,723,971 $ 44,902,853 $ 4,178,882 Operating Expenses Cost of Operations 34,799,364 39,307,654 4,508,290 Depreciation Expense 4,100,000 4,431,549 331,549 Total Operating Expenses 38,899,364 43,739,203 4,839,839 Operating Income (Loss) 1,824,607 1,163,650 (660,957) Nonoperating Revenues (Expenses) (482,043) (510,336) (28,293) Change in Net Position 1,342,564 653,314 (689,250) Net Position, Beginning of Year 75,831,072 75,831,072 Net Position, End of Year $ 77,173,636 $ 76,484,386 $ (689,2 Actual operating revenues were $4,178,882 over budgeted revenues while operating income (loss) was under budget by $660,957. The actual operating revenues for the Commission had a variance of approximately 10.26% from budgeted operating revenues. Operating expenses were $4,839,839 more than budgeted. Purchased Power and Gas for Generation expenses were higher than budgeted due to rising Natural Gas prices. The Natural Gas Fund had more operating expenses than budgeted for in Purchased Natural Gas and less expenses than budgeted in all other departments. 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 2021. 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 $158,398,640 in 2021. This is an increase of $2,901,081 from 2020. Refer to Note 5 of the Notes to the Financial Statements for the Commission's 2021 capital asset activity. At year-end, the Commission had $24,240,000 in bonds outstanding and $718,397 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. 0 HUTCHINSON UTILITIES COMMISSION MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2021 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 2022 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 but is starting to budget for higher prices. 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 2022 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. 0 This page intentionally left blank BASIC FINANCIAL STATEMENTS This page intentionally left blank HUTCHINSON UTILITIES COMMISSION STATEMENT OF NET POSITION DECEMBER 31, 2021 WITH PARTIAL COMPARATIVE AMOUNTS AS OF DECEMBER 31, 2020 2021 2020 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Assets Current Assets Cash and Investments $ 24,267,648 $ 25,578,167 Receivables Accounts Receivable (Net of Allowance for Doubtful Accounts of $73,427 and $80,591, Respectively) 3,824,441 3,471,561 Interest Receivable 94,416 97,986 Sales Tax Receivable 140,776 124,247 Inventory 2,184, 064 1,961,383 Prepaid Items 47,047 29,588 Total Current Assets 30,558,392 31,262,932 Noncurrent Assets Restricted Assets Cash and Investments 3,688,606 3,680,239 Capital Assets Assets Not Being Depreciated 4,627,845 4,994,239 Other Capital Assets, Net of Depreciation 70,911,813 71,739,824 Net Capital Assets 75,539,658 76,734,063 Total Noncurrent Assets 79,228,264 80,414,302 Total Assets 109,786,656 111,677,234 Deferred Outflows of Resources 2,174,328 417,556 Total Assets and Deferred Outflows of Resources $ 111,960,984 $ 112,094,790 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Liabilities Current Liabilities Accounts Payable $ 2,586,056 $ 2,294,443 Customer Deposits 313,551 425,065 Accrued Expenses Interest 75,075 82,542 Salaries Payable 291,596 296,684 Total Current Liabilities 3,266,278 3,098,734 Long -Term Liabilities Net Pension Liability 2,959,420 4,034,943 Total OPEB Liability 125,549 112,072 Other Long -Term Liabilities Due Within One Year 2,678,822 2,488,308 Other Long -Term Liabilities Due in More Than One Year 23,724,672 26,365,105 Total Long -Term Liabilities 29,488,463 33,000,428 Total Liabilities 32,754,741 36,099,162 Deferred Inflows of Resources 2,721,857 164,556 Net Position Net Investment in Capital Assets 53,543,167 52,270,140 Unrestricted 22,941,219 23,560,932 Total Net Position 76,484,386 75,831,072 Total Liabilities, Deferred Inflows of Resources and Net Position $ 111,960,984 $ 112,094,790 See Accompanying Notes to the Financial Statements 10 HUTCHINSON UTILITIES COMMISSION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION YEAR ENDED DECEMBER 31, 2021 WITH PARTIAL COMPARATIVE AMOUNTS FOR THE 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 NET POSITION, END OF YEAR See Accompanying Notes to the Financial Statements 11 2021 2020 $ 29,629,132 $ 26,418,356 13,444,626 9,800,541 1,829,095 1,761,940 44,902,853 37,980,837 4,281,812 2,924,639 770,276 558,907 23,251,254 18,424,450 319,384 340,060 3,265,170 2,549,963 74,405 21,001 1,805,124 1,820,744 625,625 613,203 437,379 442,142 211,321 340,934 2,398,712 2,278,129 4,431,549 3,893,094 1,867,192 1,867,192 43,739,203 36,074,458 1,163,650 1,906,379 43,804 737,924 (38,938) 177,632 164,760 1,686,800 85,318 54,616 219,065 219,066 (984,345) (1,075,279) (510,336) 1,800,759 653,314 3,707,138 75,831,072 72,123,934 $ 76,484,386 $ 75,831,072 HUTCHINSON UTILITIES COMMISSION STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2021 WITH PARTIAL COMPARATIVE AMOUNTS FOR THE 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 12 2021 2020 $ 42,609,364 $ 36,205,588 1,812,566 1,726,284 (34,414,191) (27,625,292) (5,099,449) (4,766,135) 4,908,290 5,540,445 125,822 1,864,432 (3,269,717) (1,739,468) 117,891 58,194 (2,240,000) (2,100,000) (991,812) (1,082,279) (6,383,638) (4,863,553) 47,374 755,902 (1,302,152) 3,297,226 29,258,406 25,961,180 $ 27,956,254 $ 29,258,406 $ 24,267,648 $ 25,578,167 3,688,606 3,680,239 $ 27,956,254 $ 29,258,406 HUTCHINSON UTILITIES COMMISSION STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2021 WITH PARTIAL COMPARATIVE AMOUNTS FOR THE 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 See Accompanying Notes to the Financial Statements 13 2021 2020 $ 1,163,650 $ 1,906,379 4,431,549 3,893,094 (274,004) (239,563) 12,487 6,897 (352,880) 6,277 (16,529) (35,656) (222,681) (85,767) (17,459) 48,277 291,613 (79,578) (111,514) (19,586) (5,088) 71,856 9,146 67,815 $ 4,908,290 $ 5,540,445 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021 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, deferred outflows of resources, liabilities, deferred inflows of resources, 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 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021 NOTE 1. 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 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021 NOTE 1. 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 in excess of FDIC Insurance. 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. HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021 NOTE 1. 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, 2021 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 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021 NOTE 1. 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 $104,569. 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 NOTE 1 NOTE 2 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021 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, 2020, from which the partial information was derived. 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 Money Market Accounts Petty Cash Total Deposits $ 14,084,438 86,437 850 $ 14,171,725 20 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021 NOTE 2. DEPOSITS AND INVESTMENTS (Cont'd) B. INVESTMENTS The Commission had the following investments: Interest Rate Risk Fair Value Maturity Date Municipal Bonds $ 9,711,149 1-13 years FHLB Bonds 1,690,500 1-5 years Brokered Certificates of Deposit 2,382,880 1-5 years Total Investments $ 13,784,529 The Municipal Bonds had a variety of ratings. The FHLB Bonds were rated AAA. The Brokered 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 $ 9,711,149 $ $ 9,711,149 $ FHLB Bonds 1,690,500 1,690,500 Brokered Certificates of Deposit 2,382,880 2,382,880 Total Investments $ 13,784,529 $ 2,382,880 $ 11,401,649 $ 0 The following is a summary total of deposits and investments: Deposits (Note 2.A.) $ 14,171,725 Investments (Note 2.B.) 13,784,529 Total Deposits and Investments $ 27,956,254 Deposits and investments are presented in the basic financial statements as follows: Current Assets Cash and Investments $ 24,267,648 Noncurrent Assets Restricted Assets Cash and Investments 3,688,606 Total Deposits and Investments $ 27,956,254 21 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021 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. $ 2,367,865 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. 1,320,741 Total Cash and Investments - Restricted $ 3,688,606 The following items have been designated by the Commission for the following purposes: Rate Stabilization - Electric $ 364,336 Rate Stabilization - Gas 601,271 Payment in Lieu of Taxes 1,867,192 Catastrophic 1,000,000 Expansion and Development Reserve Account Funds designated for the expansion and development of the utility. 3,450,000 60 Days Operating Cash 6,432,490 Total Cash and Investments - Designated $ 13,715,289 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, 2021 NOTE 4. INVENTORY Inventory consists of the following: Electric Division Fuel Oil and Lubricants $ 92,623 Plant Systems Material 6,070 Engine Parts 892,632 Distribution Materials 533,962 Transformers 152,575 Total Electric Division 1,677,862 Natural Gas Division Fittings 202,632 Transmission Line Gas 303,570 Total Natural Gas Division 506,202 Total Inventory $ 2,184,064 23 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021 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 4,030,760 403,951 1,627,994 (1,994,388) 37,557 4,994,239 1,627,994 (1,994,388) 4,627,845 Structures and Improvements 132,995,012 1,364,953 134,359,965 Equipment 17,299,676 2,271,158 (368,636) 19,202,198 Software 208,632 208,632 Total Capital Assets, Being Depreciated 150,503,320 3,636,111 (368,636) 153,770,795 Less Accumulated Depreciation for Structures and Improvements 67,448,389 3,822,987 71,271,376 Equipment 11,148,179 607,048 (336,063) 11,419,164 Software 166,928 1,514 168,442 Total Accumulated Depreciation 78,763,496 4,431,549 (336,063) 82,858,982 Total Capital Assets, Being Depreciated, Net 71,739,824 (795,438) (32,573) 70,911,813 Net Capital Assets $ 76,734,063 $ 832,556 $ (2,026,961) $ 75,539,658 Depreciation expense was charged to the following functions Electric Division $ 3,334,286 Natural Gas Division 1,097,263 Total Depreciation Expense $ 4,431,549 24 HUTCHINSON UTILITIES COMMISSION NOTE 6 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021 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 $ 9,510,000 12/01 /2037 14, 730, 000 1,445,097 718,397 $ 26,403,494 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 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 2,080,000 104,000 820,000 361,656 2027-2031 4,535,000 1,368,508 2032-2036 5,250,000 660,407 2037 1,145,000 35,782 $ 9,510,000 $ 1,339,400 $ 14,730,000 $ 4,176,977 25 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021 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 $ 11,075,000 $ 15,405,000 1,664,162 709,251 Ending Due Within Additions Reductions Balance One Year $ (1,565,000) $ 9,510,000 $ 1,730,000 (675,000) 14,730,000 700,000 (219,065) 1,445,097 219,065 448,885 (439,739) 718,397 29,757 $ 28,853,413 $ 448,885 $ (2,898,804) $ 26,403,494 $ 2,678,822 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 $ 10,849,400 $ 2,047,650 $ 13,444,626 18,906,977 1,182,856 29,629,132 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. KPI HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021 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 2021 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. 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, 2021 NOTE 8. DEFINED BENEFIT PENSION PLANS - STATEWIDE (Cont'd) B. BENEFITS PROVIDED (Cont'd) GERP Benefits: Benefit increases are provided to benefit recipients each January. The postretirement increase is 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. 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 2021 and 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, 2021, were $376,462. The Commission's contributions were equal to the required contributions as set by state statute. D. PENSION COSTS GERP Pension Costs: At December 31, 2021, the Commission reported a liability of $2,959,420 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 $90,354. The net pension liability was measured as of June 30, 2021, 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, 2020, through June 30, 2021, relative to the total employer contributions received from all of PERA's participating employers. The Commission's proportion share was 0.0693 percent at the end of the measurement period and 0.0673 percent for the beginning of the period. 28 HUTCHINSON UTILITIES COMMISSION NOTE 8 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021 DEFINED BENEFIT PENSION PLANS - STATEWIDE (Cont'd) D. PENSION COSTS (Cont'd) Commission's Proportionate Share of the Net Pension Liability $ 2,959,420 State of Minnesota's Proportionate Share of the Net Pension Liability Associated With the Commission 90,354 Total $ 3,049,774 The following changes in plan provisions occurred during 2021: There were no provision changes during the measurement period. For the year ended December 31, 2021, the Commission recognized pension expense of $248,628 for its proportionate share of GERP's pension expense. In addition, the Commission recognized an additional $7,290 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, 2021, 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 Deferred Deferred Outflows of Inflows of Resources Resources $ 17,001 $ 90,264 1,806,960 62,825 2,567,381 159,042 1,387 185,816 $ 2,168,819 $ 2,721,857 The $185,816 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, 2022. 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 2022 $ (61,410) 2023 17,588 2024 4,028 2025 (699,060) 29 HUTCHINSON UTILITIES COMMISSION NOTE 8 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021 DEFINED BENEFIT PENSION PLANS - STATEWIDE (Cont'd) E. LONG-TERM EXPECTED RETURN ON INVESTMENT 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 33.50% International Equity 16.50% Fixed Income 25.00% Private Markets 25.00% 100.00% F. ACTUARIAL METHODS AND ASSUMPTIONS 5.10% 5.30% 0.75% 5.90% The total pension liability in the June 30, 2021, actuarial valuation was determined using an individual entry -age normal actuarial cost method. The long-term rate of return on pension plan investments used in the determination of the total liability is 6.5 percent. This assumption is based on a review of inflation and investments return assumptions from a number of national investment consulting firms. The review provided a range of return investment return rates deemed to be reasonable by the actuary. An investment return of 6.5 percent was deemed to be within that range of reasonableness for financial reporting purposes. Inflation is assumed to be 2.25 percent for the General Employees Plan. Benefit increases after retirement are assumed to be 1.25 percent for the General Employees Plan. Salary growth assumptions in the General Employees Plan range in annual increments from 10.25 percent after one year of service to 3.0 percent after 29 years of service and 6.0 percent per year thereafter. Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table. The tables are adjusted slightly to fit PERA's experience. Actuarial assumptions for the General Employees Plan are reviewed every four years. 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 became effective with the July 1, 2020 actuarial valuation. 30 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021 NOTE 8. DEFINED BENEFIT PENSION PLANS - STATEWIDE (Cont'd) F. ACTUARIAL METHODS AND ASSUMPTIONS (Cont'd) The following changes in actuarial assumptions occurred in 2021: GERP The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. G DISCOUNT RATE The discount rate used to measure the total pension liability in 2021 was 6.50 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. H. 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 5.50% $ 6,035,707 Current Discount Rate 6.50% 2,959,420 1% Higher 7.50% 435,140 I. 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. 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. 31 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021 NOTE 10. PUBLIC EMPLOYEES DEFINED CONTRIBUTION PLAN Four Commissioners of the Hutchinson Utilities Commission are covered by the Defined Contribution Plan, a multiple -employer deferred compensation plan administered by PERA. The Defined Contribution Plan is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes five percent of salary which is matched by the elected official's employer. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives two percent of employer contributions and twenty-five hundredths of one percent (0.25 percent) of the assets in each member's account annually. Total contributions made by the Commission during the year were: Contribution Amount Percentage of Covered Payroll Employee Employer Employee Employer Required Rate Commissioners $ 1,056 $ 1,056 5.00% 5.00% 5.00% NOTE 11. 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 Commission's commercial insurance plans. There are 51 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 $125,549 was measured as of December 31, 2020, 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, 2021. 32 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021 NOTE 11. OTHER POST -EMPLOYMENT BENEFITS (OPEB) PLAN (Cont'd) C. CHANGES IN TOTAL OPEB LIABILITY Changes in the total OPEB liability were as follows: Total OPEB Liability Balance at December 31, 2020 $ 112,072 Changes for the year Service Cost 7,345 Interest 3,222 Changes of Assumptions or Other Inputs 7,429 Benefit Payments (4,519) Net Changes in Total OPEB Liability 13,477 Balance at December 31, 2021 $ 125,549 Changes of assumptions and other inputs reflect a change in the discount rate from 2.75% in 2020 to 2.00% in 2021. 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 (1.00%) or 1-percentage-point higher (3.00%) than the current discount rate: Total OPEB Liability 1.0% Decrease 1.0% Increase in Discount Discount Rate in Discount Rate (1.00%) (2.00%) Rate (3.00%) $ 135,759 $ 125,549 $ 115,696 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: 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%) Total OPEB Liability $ 108,897 $ 125,549 $ 145,159 33 HUTCHINSON UTILITIES COMMISSION NOTE 11 NOTE 12 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021 OTHER POST -EMPLOYMENT BENEFITS (OPEB) PLAN (Cont'd) D. OPEB EXPENSE, DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RELATED TO OPEB For the year ended December 31, 2021, the Commission recognized OPEB expense of $12,487. At December 31, 2021, the Commission reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Contributions Paid Subsequent to Measurement Date $ 5,509 $5,509 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, 2022. E. ACTUARIAL METHODS AND ASSUMPTIONS The total OPEB liability in the December 31, 2020 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 2.00% 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, 2020 valuation were based on the results of an actuarial experience study for the period January 1, 2020—December 31, 2020. MAJOR CUSTOMERS The Electric Division derived approximately 49.59% of utility revenue from the top five major customers. The Natural Gas Division derived approximately 43.77% of its utility revenue from the top five major customers. 34 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021 NOTE 13. 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 14. 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. NOTE 15. DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES 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 16. COVID-19 Deferred Deferred Outflows of Inflows of Resources Resources $ 2,168,819 $ 2,721,857 5,509 $ 2,174,328 $ 2,721,857 In March 2020, the World Health Organization declared the novel coronavirus disease (COVID-19) a pandemic, and the United States declared a national emergency. Various governmental measures to control the spread of the virus have been implemented throughout the country, including temporary closure of businesses, restrictions on travel, and other limitations on the conduct of business. The pandemic is disrupting supply chains and affecting production and sales across a range of industries. The continued spread of the coronavirus globally could have an effect on the comission's business, net position, and results of operations in the next year. 35 REQUIRED SUPPLEMENTARY INFORMATION This page intentionally left blank HUTCHINSON UTILITIES COMMISSION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY DECEMBER 31, 2021 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, 2021 0.0693% $ 2,959,420 $ 90,354 $ 3,049,774 $ 5,043,405 60.47% 87.00% 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 36 HUTCHINSON UTILITIES COMMISSION SCHEDULE OF EMPLOYER CONTRIBUTIONS DECEMBER 31, 2021 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 12/31/2021 $ 376,462 $ 376,462 $ $ 5,019,493 7.50% 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 37 HUTCHINSON UTILITIES COMMISSION SCHEDULE OF CHANGES IN THE COMMISSION'S TOTAL OPEB LIABILITY DECEMBER 31, 2021 Measurement Date 12/31 /2020 12/31 /2019 12/31 /2018 12/31 /2017 Service Cost $ 7,345 $ 5,994 $ 6,199 $ 5,475 Interest 3,222 3,982 3,391 3,379 Differences Between Expected and Actual Experience (10,484) Changes in Assumptions or Other Inputs 7,429 11,924 (3,843) 4,199 Benefit Payments (4,519) (1,347) Net Change in Total OPEB Liability 13,477 10,069 5,747 13,053 Total OPEB Liability - Beginning of Year 112,072 102,003 96,256 83,203 Total OPEB Liability - End of Year $ 125,549 $ 112,072 $ 102,003 $ 96,256 Covered Employee Payroll $ 4,896,460 $ 4,733,716 $ 4,488,568 $ 4,206,868 Total OPEB Liability as a % of Covered Employee Payroll 2.56% 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 38 This page intentionally left blank HUTCHINSON UTILITIES COMMISSION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2021 NOTE 1. CHANGES IN PLAN PROVISIONS A. GENERAL EMPLOYEE RETIREMENT PLAN (GE 2021 Changes: There have been no changes since the prior valuation. 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 Changes: 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 Changes: 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. 39 HUTCHINSON UTILITIES COMMISSION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2021 NOTE 1. CHANGES IN PLAN PROVISIONS (Cont'd) A. GENERAL EMPLOYEE RETIREMENT PLAN (GERP) (Cont'd) 2016 Changes: There have been no changes since the prior valuation. 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 2021 Changes: No changes. 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) 2021 Changes: The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. 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%. 40 HUTCHINSON UTILITIES COMMISSION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2021 NOTE 2. CHANGES IN ACTUARIAL ASSUMPTIONS (Cont'd) A. GENERAL EMPLOYEE RETIREMENT PLAN (GERP) (Cont'd) 2020 Changes: (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. 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. 41 HUTCHINSON UTILITIES COMMISSION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2021 NOTE 2. CHANGES IN ACTUARIAL ASSUMPTIONS (Cont'd) A. GENERAL EMPLOYEE RETIREMENT PLAN (GERP) (Cont'd) 2017 Changes: (Cont'd) 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. 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 2021 Changes: The discount rate was changed from 2.75% to 2.00% based on the updated 20-year municipal bond rates. 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. 42 HUTCHINSON UTILITIES COMMISSION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2021 NOTE 2. CHANGES IN ACTUARIAL ASSUMPTIONS (Cont'd) B. OTHER POST -EMPLOYMENT BENEFITS (OPEB) PLAN NOT ADMINISTERED IN A TRUST (Cont'd) 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 This page intentionally left blank SUPPLEMENTARY INFORMATION This page intentionally left blank HUTCHINSON UTILITIES COMMISSION COMBINING STATEMENT OF NET POSITION DECEMBER 31, 2021 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Assets Current Assets Cash and Investments Receivables Accounts Receivable (Net of Allowance for Doubtful Accounts of $38,182 and $35,245, 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 11,552,577 $ 12,715,071 $ 24,267,648 2,205,367 1,619,074 3,824,441 47,208 47,208 94,416 140,776 140,776 1,677,862 506,202 2,184,064 32,876 14,171 47,047 15,656,666 14,901,726 30,558,392 1,320,741 2,367,865 3,688,606 709,468 3,918,377 4,627,845 47,427,926 23,483,887 70,911,813 48,137,394 27,402,264 75,539,658 49,458,135 29,770,129 79,228,264 65,114, 801 44, 671, 855 109, 786, 656 1,630,746 543,582 2,174,328 $ 66,745,547 $ 45,215,437 $ 111,960,984 $ 1,613,259 $ 972,797 $ 2,586,056 203,808 109,743 313,551 40,071 35,004 75,075 217,757 73,839 291,596 2,074,895 1,191,383 3,266,278 2,219,565 739,855 2,959,420 94,162 31,387 125,549 755,040 1,923,782 2,678,822 15,030,783 8,693,889 23,724,672 18,099,550 11,388,913 29,488,463 20,174,445 12,580,296 32,754,741 2,041,393 680,464 2,721,857 34,195,612 19,347,555 53,543,167 10,334,097 12,607,122 22,941,219 44,529,709 31,954,677 76,484,386 $ 66,745,547 $ 45,215,437 $ 111,960,984 44 HUTCHINSON UTILITIES COMMISSION COMBINING SCHEDULE OF REVENUES AND EXPENSES YEAR ENDED DECEMBER 31, 2021 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 $ 29,629,132 $ $ 29,629,132 13,444,626 13,444,626 66,897 1,762,198 1,829,095 29,696,029 15,206,824 44,902,853 4,281,812 4,281,812 770,276 770,276 13,420,688 9,830,566 23,251,254 319,384 319,384 3,042,702 222,468 3,265,170 67,769 6,636 74,405 1,037,734 767,390 1,805,124 408,867 216,758 625,625 240,193 197,186 437,379 107,256 104,065 211,321 1,560,020 838,692 2,398,712 3,334,286 1,097,263 4,431,549 1,293,543 573,649 1,867,192 29,884,530 13,854,673 43,739,203 (188,501) 1,352,151 1,163,650 21,850 21,954 43,804 (40,569) 1,631 (38,938) 108,497 56,263 164,760 37,150 48,168 85,318 33,457 185,608 219,065 (506,313) (478,032) (984,345) (345,928) (164,408) (510,336) (534,429) 1,187,743 653,314 45,064,138 30,766,934 75,831,072 NET POSITION, END OF YEAR $ 44,529,709 $ 31,954,677 $ 76,484,386 45 HUTCHINSON UTILITIES COMMISSION SCHEDULE OF DIVISIONS CASH FLOWS YEAR ENDED DECEMBER 31, 2021 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 $ 29,406,139 $ 13,203,225 $ 42,609,364 50,368 1,762,198 1,812,566 (22,372,806) (12,041,385) (34,414,191) (4,423,743) (675,706) (5,099,449) 2,659,958 2,248,332 4,908,290 67,928 57,894 125,822 (3,000,018) (269,699) (3,269,717) 69,723 48,168 117,891 (675,000) (1,565,000) (2,240,000) (508,563) (483,249) (991,812) (4,113,858) (2,269,780) (6,383,638) ►lt�:klc�►It�Lt�'� fACrIV ("I ,3bZ,33 /) ou, "I = ("I ,3UZ, "I �Z) 14,235,655 15,022,751 29,258,406 $ 12,873,318 $ 15,082,936 $ 27,956,254 $ 11,552,577 $ 12,715,071 $ 24,267,648 1,320,741 2,367,865 3,688,606 $ 12,873,318 $ 15,082,936 $ 27,956,254 HUTCHINSON UTILITIES COMMISSION SCHEDULE OF DIVISIONS CASH FLOWS YEAR ENDED DECEMBER 31, 2021 Electric 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 Natural Gas $ (188,501) $ 1,352,151 $ 1,163,650 3,334,286 1,097,263 4,431,549 (205,503) (68,501) (274,004) 9,365 3,122 12,487 (150,509) (202,371) (352,880) (16,529) (16,529) (176,189) (46,492) (222,681) (4,348) (13,111) (17,459) 130,399 161,214 291,613 (72,484) (39,030) (111,514) (4,936) (152) (5,088) $ 2,659,958 $ 2,248,332 $ 4,908,290 47 HUTCHINSON UTILITIES COMMISSION STATEMENT OF NET POSITION ELECTRIC DIVISION DECEMBER 31, 2021 WITH PARTIAL COMPARATIVE AMOUNTS AS OF DECEMBER 31, 2020 2021 2020 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Assets Current Assets Cash and Investments $ 11,552,577 $ 12,914,748 Receivables Accounts Receivable (Net of Allowance for Doubtful Accounts of $38,182 and $44,325, Respectively) 2,205,367 2,054,858 Interest Receivable 47,208 48,993 Sales Tax Receivable 140,776 124,247 Inventory 1,677, 862 1,501,673 Prepaid Items 32,876 28,528 Total Current Assets 15,656,666 16,673,047 Noncurrent Assets Restricted Assets Cash and Investments 1,320,741 1,320,907 Capital Assets Assets Not Being Depreciated 709,468 1,029,194 Other Capital Assets, Net of Depreciation 47,427,926 47,475,041 Net Capital Assets 48,137,394 48,504,235 Total Noncurrent Assets 49,458,135 49,825,142 Total Assets 65,114,801 66,498,189 Deferred Outflows of Resources 1,630,746 313,166 Total Assets and Deferred Outflows of Resources $ 66,745,547 $ 66,811,355 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Liabilities Current Liabilities Accounts Payable $ 1,613,259 $ 1,482,860 Customer Deposits 203,808 276,292 Accrued Expenses Interest 40,071 42,321 Salaries Payable 217,757 222,693 Total Current Liabilities 2,074,895 2,024,166 Long -Term Liabilities Net Pension Liability 2,219,565 3,026,207 Total OPEB Liability 94,162 84,054 Other Long -Term Liabilities Due Within One Year 755,040 729,759 Other Long -Term Liabilities Due in More Than One Year 15,030,783 15,759,614 Total Long -Term Liabilities 18,099,550 19,599,634 Total Liabilities 20,174,445 21,623,800 Deferred Inflows of Resources 2,041,393 123,417 Net Position Net Investment in Capital Assets 34,195,612 33,854,162 Unrestricted 10, 334,097 11,209,976 Total Net Position 44,529,709 45,064,138 Total Liabilities, Deferred Inflows of Resources and Net Position $ 66,745,547 $ 66,811,355 48 HUTCHINSON UTILITIES COMMISSION DETAILED SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BUDGET AND ACTUAL - ELECTRIC DIVISION YEAR ENDED DECEMBER 31, 2021 WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2020 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 2021 9n9n Over (Under) Budget Actual Budget Actual $ 5,922,326 $ 6,013,887 $ 91,561 $ 5,692,685 9,632,941 9,731,853 98,912 8,911,119 9,748,821 9,524,147 (224,674) 8,963,654 137,332 137,710 378 141,886 3,360,000 4,221,535 861,535 2,709,012 28,801,420 29,629,132 827,712 26,418,356 88,800 56,300 (32,500) 31,443 11,000 10,597 (403) 10,817 99,800 66,897 (32,903) 42,260 28,901,220 29,696,029 794,809 26,460,616 1,155,453 1,089,780 (65,673) 1,137,796 660,873 558,662 (102,211) 553,438 81,616 387,090 305,474 72,042 140,752 239,868 99,116 137,920 498,624 1,287,398 788,774 336,158 682,550 682,550 665,283 23,000 36,464 13,464 22,002 3,242,868 4,281,812 1,038,944 2,924,639 10,000 8,636 (1,364) 18,208 442,410 507,500 65,090 339,139 181,000 254,140 73,140 201,560 633,410 770,276 136,866 558,907 3,876,278 5,052,088 1,175,810 3,483,546 12,888,000 13,420,688 532,688 12,835,939 49 HUTCHINSON UTILITIES COMMISSION DETAILED SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BUDGET AND ACTUAL - ELECTRIC DIVISION YEAR ENDED DECEMBER 31, 2021 WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2020 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 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 2021 9n9n Over (Under) Budget Actual Budget Actual $ 214,719 $ 282,784 $ 68,065 $ 303,460 1,000 (1,000) 36,600 36,600 36,600 252,319 319,384 67,065 340,060 3,200,000 2,845,628 (354,372) 2,136,904 175,000 197,074 22,074 187,870 3,375,000 3,042,702 (332,298) 2,324,774 115,283 67,769 (47,514) 9,767 3,490,283 3,110,471 (379,812) 2,334,541 665,880 354,930 (310,950) 426,167 419,218 392,313 (26,905) 392,723 83,393 121,724 38,331 127,873 54,905 25,331 (29,574) 22,307 125,000 143,436 18,436 117,282 1,348,396 1,037,734 (310,662) 1,086,352 51,490 27,878 (23,612) 16,175 172,691 218,522 45,831 218,812 21,497 32,519 11,022 14,748 86,827 100,402 13,575 104,880 59,031 29,546 (29,485) 44,889 391,536 408,867 17,331 399,504 1,739,932 1,446,601 (293,331) 1,485,856 26,030 5,101 (20,929) 4,553 175,013 159,571 (15,442) 150,840 12,159 12,159 11,870 5,500 1,253 (4,247) 23,567 68,849 61,655 (7,194) 61,088 1,500 454 (1,046) 688 276,892 240,193 (36,699) 252,606 50 HUTCHINSON UTILITIES COMMISSION DETAILED SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BUDGET AND ACTUAL - ELECTRIC DIVISION YEAR ENDED DECEMBER 31, 2021 WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2020 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 Payment in Lieu of Taxes 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 2021 gn9n Over (Under) Budget Actual Budget Actual $ 73,086 $ 42,343 $ (30,743) $ 40,848 263,195 64,913 (198,282) 196,433 336,281 107,256 (229,025) 237,281 505,050 492,700 (12,350) 494,674 264,901 246,646 (18,255) 251,846 127,981 91,928 (36,053) 98,403 333,338 328,326 (5,012) 194,883 95,276 90,778 (4,498) 131,252 106,000 97,650 (8,350) 97,831 15,000 4,483 (10,517) 8,459 15,836 15,894 58 15,953 5,500 6,160 660 2,416 72,000 68,621 (3,379) 58,447 74,557 116,834 42,277 94,754 1,615,439 1,560,020 (55,419) 1,448,918 3,000,000 3,334,286 334,286 2,804,539 1,293,543 1,293,543 1,293,543 28,768,967 29,884,530 1,115,563 26,516,829 132,253 (188,501) (320,754) (56,213) 175,000 21,850 (153,150) 368,962 (70,000) (40,569) 29,431 79,987 108,497 108,497 1,667,727 37,150 37,150 31,158 33,456 33,457 1 33,457 (508,357) (506,313) 2,044 (536,416) (369,901) (345,928) 23,973 1,644,875 $ (237,648) (534,429) $ (296,781) 1,588,662 45,064,138 43,475,476 S 44.529.709 S 45.064.138 51 HUTCHINSON UTILITIES COMMISSION STATEMENT OF NET POSITION NATURAL GAS DIVISION DECEMBER 31, 2021 WITH PARTIAL COMPARATIVE AMOUNTS AS OF DECEMBER 31, 2020 2021 2020 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Assets Current Assets Cash and Investments $ 12,715,071 $ 12,663,419 Receivables Accounts Receivable (Net of Allowance for Doubtful Accounts of $35,245 and $36,266, Respectively) 1,619,074 1,416,703 Interest Receivable 47,208 48,993 Inventory 506,202 459,710 Prepaid Items 14,171 1,060 Total Current Assets 14,901,726 14,589,885 Noncurrent Assets Restricted Assets Cash and Investments 2,367,865 2,359,332 Capital Assets Assets Not Being Depreciated 3,918,377 3,965,045 Other Capital Assets, Net of Depreciation 23,483,887 24,264,783 Net Capital Assets 27,402,264 28,229,828 Total Noncurrent Assets 29,770,129 30,589,160 Total Assets 44,671,855 45,179,045 Deferred Outflows of Resources 543,582 104,390 Total Assets and Deferred Outflows of Resources $ 45,215,437 $ 45,283,435 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Liabilities Current Liabilities Accounts Payable $ 972,797 $ 811,583 Customer Deposits 109,743 148,773 Accrued Expenses Interest 35,004 40,221 Salaries Payable 73,839 73,991 Total Current Liabilities 1,191,383 1,074,568 Long -Term Liabilities Net Pension Liability 739,855 1,008,736 Total OPEB Liability 31,387 28,018 Other Long -Term Liabilities Due Within One Year 1,923,782 1,758,550 Other Long -Term Liabilities Due in More Than One Year 8,693,889 10,605,490 Total Long -Term Liabilities 11,388,913 13,400,794 Total Liabilities 12,580,296 14,475,362 Deferred Inflows of Resources 680,464 41,139 Net Position Net Investment in Capital Assets 19,347,555 18,415,978 Unrestricted 12,607,122 12,350,956 Total Net Position 31,954,677 30,766,934 Total Liabilities, Deferred Inflows of Resources and Net Position $ 45,215,437 $ 45,283,435 60 HUTCHINSON UTILITIES COMMISSION DETAILED SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BUDGET AND ACTUAL - NATURAL GAS DIVISION YEAR ENDED DECEMBER 31, 2021 WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2020 2021 2020 Over (Under) Budget Actual Budget Actual OPERATING REVENUES Utility Revenues Residential $ 3,884,607 $ 4,639,771 $ 755,164 $ 3,663,453 Commercial 2,896,448 3,469,964 573,516 2,597,225 Industrial 3,323,445 5,334,891 2,011,446 3,539,863 Total Utility Revenues 10,104,500 13,444,626 3,340,126 9,800,541 Other Operating Revenues Gas Transportation Contract - New Ulm 998,904 1,058,042 59,138 1,042,274 Transportation - Electric Division 682,550 682,550 665,283 Penalties/Fees 36,797 21,606 (15,191) 12,123 Total Other Operating Revenues 1,718,251 1,762,198 43,947 1,719,680 Total Operating Revenues 11,822,751 15,206,824 3,384,073 11,520,221 OPERATING EXPENSES Purchased Natural Gas 5,538,340 9,830,566 4,292,226 5,588,511 Transmission Operations Supervision and Engineering 144,250 125,698 (18,552) 129,661 Other 127,500 96,770 (30,730) 95,528 Total Operations 271,750 222,468 (49,282) 225,189 Maintenance Supervision and Engineering 1,812 1,331 (481) 1,787 Other 45,000 5,305 (39,695) 9,447 Total Maintenance 46,812 6,636 (40,176) 11,234 Total Transmission 318,562 229,104 (89,458) 236,423 Distribution Operations Supervision and Engineering 239,709 211,079 (28,630) 158,338 Other Employee Benefits 422,208 361,452 (60,756) 338,005 Mains and Services 182,000 128,895 (53,105) 188,590 Meters 10,000 22,988 12,988 9,854 Other 58,200 42,976 (15,224) 39,605 Total Operations 912,117 767,390 (144,727) 734,392 Maintenance Mains and Services 240,805 141,692 (99,113) 148,323 Meters 26,280 15,624 (10,656) 12,377 Other Equipment 161,306 59,442 (101,864) 52,999 Total Maintenance 428,391 216,758 (211,633) 213,699 Total Distribution 1,340,508 984,148 (356,360) 948,091 53 HUTCHINSON UTILITIES COMMISSION DETAILED SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BUDGET AND ACTUAL - NATURAL GAS DIVISION YEAR ENDED DECEMBER 31, 2021 WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2020 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) 2021 2020 Over (Under) Budget Actual Budget Actual $ 21,297 $ 4,355 $ (16,942) $ 3,656 129,886 130,982 1,096 122,877 9,000 10,456 1,456 10,283 4,500 577 (3,923) 2,175 56,331 50,445 (5,886) 49,982 1,575 371 (1,204) 563 222,589 197,186 (25,403) 189,536 24,362 42,342 17,980 40,847 142,364 61,723 (80,641) 62,806 166,726 104,065 (62,661) 103,653 351,861 395,810 43,949 395,464 96,834 80,642 (16,192) 98,182 55,994 48,667 (7,327) 41,080 50,738 75,553 24,815 50,491 100,065 36,864 (63,201) 52,345 40,000 58,496 18,496 60,419 55,000 35,582 (19,418) 37,077 10,558 10,597 39 10,636 5,000 2,944 (2,056) 2,209 48,000 59,344 11,344 34,572 55,973 34,193 (21,780) 46,736 870,023 838,692 (31,331) 829,211 1,100,000 1,097,263 (2,737) 1,088,555 573,649 573,649 573,649 10,130,397 13,854,673 3,724,276 9,557,629 1,692,354 1,352,151 (340,203) 1,962,592 54 HUTCHINSON UTILITIES COMMISSION DETAILED SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BUDGET AND ACTUAL - NATURAL GAS DIVISION YEAR ENDED DECEMBER 31, 2021 WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2020 2021 2020 Over (Under) Budget Actual Budget Actual NONOPERATING REVENUES (EXPENSES) Interest Income $ 175,000 $ 21,954 $ (153,046) $ 368,962 Merchandise and Contract Work, Net 10,500 1,631 (8,869) 97,645 Miscellaneous Income 56,263 56,263 19,073 Gain (Loss) on Disposal of Assets 48,168 48,168 23,458 Bond Premium 185,608 185,608 185,609 Interest Expense (483,250) (478,032) 5,218 (538,863) Total Nonoperating Revenues (Expenses) (112,142) (164,408) (52,266) 155,884 Change in Net Position $ 1,580,212 1,187,743 $ (392,469) 2,118,476 NET POSITION, BEGINNING OF YEAR 30,766,934 28,648,458 NET POSITION, END OF YEAR $ 31,954,677 $ 30,766,934 55 COMPLIANCE SECTION This page intentionally left blank 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, 2021, 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 30, 2022. 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 c�on� compliance. Accordingly, this communication is not suitable for any other purpose. CONWAY, DEUTH & SCHMIESING, PLLP CPAS & ADVISORS LITCHFIELD, MINNESOTA March 30, 2022 56 Ste 110 Sart�ett, MN w, 377 :1M 8621337 Members: 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, 2021, 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 30, 2022. 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) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions 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. 57 Morris Office 401 Atlantic Ave Morris, MAN 56267' (320) 589-2602 www.citscpa,corn Litchfield Office 820 Siibley Ave N Litchfield, MN 55355 (320) 693-7 '75 Sartelt Office Ste M Members: Arnerican Insfitute of Certified Public Accountants, Minnesota Sodety of Certified Public Accountants Report on 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. CONWAY, DEUTH & SCHMIESING, PLLP CPAS & ADVISORS LITCHFIELD, MINNESOTA March 30, 2022 58 HUTCHINSON UTILITIES COMMISSION Finding Reference SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS DECEMBER 31, 2021 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, 2022 Combined Division Customer Revenue Sales for Resale NU Transportation Electric Division Transfer Other Revenues Interest Income TOTALREVENUES Salaries & Benefits Purchased Commodities Transmission Generator Fuel/Chem. Depreciation Transfers (Elect./City) Operating Expense Debt Interest TOTAL EXPENSES NET PROFIT/(LOSS) 2022 2021 Di %Chng 1 2022 2021 Di %Chng I Full YrBud %of Bud $ 3,773,601 $ 6,451,601 $ (2,678,000) $ 276,231 $ 256,531 $ 19,700 $ 87,775 $ 83,480 $ 4,295 $ 59,724 $ 56,879 $ 2,844 $ 34,593 $ 30,841 $ 3,752 $ 46,861 $ 49,130 $ (2,270) $ 4,278,785 $ 6,928,463 $ (2,649,678) (41.5%)l $ 7,846,974 $ 9,700,699 $ (1,853,725) (19.1%)l $ 37,355,080 7.7% $ 554,749 $ 501,858 $ 52,891 10.5% $ 3,692,000 5.1% $ 176,261 $ 168,960 $ 7,301 4.3% $ 1,010,124 5.0% $ 119,447 $ 113,758 $ 5,689 5.0% $ 716,383 12.2% $ 67,446 $ 66,442 $ 1,004 1.5% $ 479,700 (4.6%) $ 82,768 $ 80,855 $ 1,913 2.4% $ 383,456 (38.2%) $ 8,847,646 $ 10,632,574 $ (1,784,928) (16.8%) $ 43,636,743 21.0% 15.0% 17.4% 16.7% 14.1% 21.6% 20.3% $ 529,729 $ 508,516 $ 21,213 4.17% $ 1,142,518 $ 1,080,840 $ 61,678 5.7% $ 7,270,807 15.7% $ 2,261,970 $ 5,841,531 $ (3,579,561) (61.3%) $ 4,765,549 $ 7,761,681 $ (2,996,132) (38.6%) $ 19,927,587 23.9% $ 158,443 $ 185,654 $ (27,211) (14.7%) $ 383,272 $ 406,086 $ (22,813) (5.6%) $ 3,325,000 11.5% $ 130,910 $ 100,015 $ 30,895 30.9% $ 264,710 $ 106,502 $ 158,208 148.5% $ 1,219,698 21.7% $ 378,711 $ 367,156 $ 11,555 3.1% $ 757,421 $ 734,342 $ 23,079 3.1% $ 4,400,000 17.2% $ 215,323 $ 212,479 $ 2,844 1.3% $ 430,646 $ 424,957 $ 5,689 1.3% $ 2,583,875 16.7% $ 182,165 $ 167,841 $ 14,324 8.5% $ 532,795 $ 401,741 $ 131,054 32.6% $ 3,367,066 15.8% $ 75,076 $ 83,542 $ (8,467) (10.1%) $ 150,151 $ 167,084 $ (16,933) 10.1% $ 900,907 16.7% $ 3,932,326 $ 7,466,732 $ (3,534,406) (47.3%) $ 8,427,062 $ 11,083,233 $ (2,656,171) (24.0%) $ 42,994,940 19.6% $ 346,459 $ (538,269) $ 884,728 (164.4%) $ 420,584 $ (450,659) $ 871,243 (193.3%) $ 641,803 65.5% February February YTD YTD 2022 2021 Change 2022 2021 Change Gross Margin %: 31.2% 6.0% 25.2% 29.8% 14.9% 14.8% Operating Income Per Revenue $ (%): 8.5% -7.8% 16.2% 5.0% -4.1% 9.1% Net Income Per Revenue $ (%): 8.1% -7.8% 15.9% 4.8% -4.2% 9.0% 2022 HUC Budget Target 32.6% W iiiiiii!I 2.2% 1.5% HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION FINANCIAL REPORT FOR FEBRUARY, 2022 2022 2021 Di %Chna 2022 2021 Di . %Chna Full YrBud %of Bud Electric Division Customer Revenue $ 1,949,124 $ 2,278,974 $ (329,850) (14.5%) $ 3,970,443 $ 4,163,661 $ (193,218) (4.6%) $ 25,325,244 15.7% Sales for Resale $ 276,231 $ 256,531 $ 19,700 7.7% $ 554,749 $ 501,858 $ 52,891 10.5% $ 3,692,000 15.0% Other Revenues $ 12,012 $ 12,561 $ (548) (4.4%) $ 15,471 $ 29,892 $ (14,421) (48.2%) $ 188,599 8.2% Interest Income $ 24,824 $ 25,664 $ (840) (3.3%) $ 44,172 $ 43,145 $ 1,027 2.4% $ 208,456 21.2% TOTAL REVENUES $ 2,262,193 $ 2,573,730 $ (311,538) (12.1%) $ 4,584,836 $ 4,738,556 $ (153,721) (3.2%) $ 29,414,299 15.6% Salaries & Benefits $ 397,675 $ 374,788 $ 22,887 6.1% $ 857,221 $ 802,148 $ 55,074 6.9% $ 5,319,511 16.1% Purchased Power $ 1,018,735 $ 1,320,391 $ (301,656) (22.8%) $ 2,081,002 $ 2,407,083 $ (326,080) (13.5%) $ 12,297,526 16.9% Transmission $ 158,443 $ 185,654 $ (27,211) (14.7%) $ 383,272 $ 406,086 $ (22,813) (5.6%) $ 3,325,000 11.5% Generator Fuel/Chem. $ 130,910 $ 100,015 $ 30,895 30.9% $ 264,710 $ 106,502 $ 158,208 148.5% $ 1,219,698 21.7% Depreciation $ 287,381 $ 276,324 $ 11,058 4.0% $ 574,763 $ 552,678 $ 22,085 4.0% $ 3,300,000 17.4% Transfers (Elect./City) $ 167,519 $ 164,674 $ 2,844 1.7% $ 335,038 $ 329,349 $ 5,689 1.7% $ 2,010,226 16.7% Operating Expense $ 117,778 $ 107,978 $ 9,800 9.1% $ 396,019 $ 255,380 $ 140,639 55.1% $ 1,928,042 20.5% Debt Interest $ 40,071 $ 43,321 $ (3,250) (7.5%) $ 80,143 $ 86,643 $ (6,500) 7.5% $ 480,857 16.7% TOTAL EXPENSES $ 2,318,513 $ 2,573,145 $ (254,632) (9.9%) $ 4,972,168 $ 4,945,868 $ 26,300 0.5% $ 29,880,860 16.6% NET PROFIT/(LOSS) $ (56,320) $ 585 $ (56,906) (9,722.5%) $ (387,332) $ (207,311) $ (180,021) 86.8% $ (466,561) 83.0% 2022 2021 Di %Chna 2022 2021 Di . %Chna Full YrBud %of Bud Electric Division Residential 4,147,503 4,210,637 (63,134) (1.50%) 8,938,579 8,628,784 309,795 3.59% 54,152,764 16.5% All Electric 362,038 353,532 8,506 2.41% 782,615 686,806 95,809 13.95% 2,641,117 29.6% Small General 1,502,756 1,503,358 (602) (0.04%) 3,182,939 3,000,284 182,655 6.09% 18,688,349 17.0% Large General 6,475,160 6,382,140 93,020 1.46% 13,196,430 12,781,370 415,060 3.25% 83,253,310 15.9% Industrial 8,622,000 8,789,000 (167,000) (1.90%) 17,796,000 17,598,000 198,000 1.13% 122,088,679 14.6% Total KWH Sold 21,109,457 21,238,667 (129,210) (0.61%)l 43,896,563 42,695,244 1,201,319 2.81%1 280,824,218 15.6% February February YTD YTD 2022 HUC 2022 2021 Change 2022 2021 Change Budget Target Gross Margin %: 27.7% 25.0% 2.7% 25.5% 24.5% 0.9% 29.2% Operating Income Per Revenue $ (%): -1.8% 0.3% -2.1% -7.7% -4.1% -3.6% -0.7% Net Income Per Revenue $ (%): -2.5% 0.0% -2.5% -8.4% -4.4% -4.1% -1.6% Customer Revenue per KWH: $0.0923 $0.1073 -$0.0150 $0.0904 $0.0975 -$0.0071 $0.0902 Total Power Supply Exp. per KWH: $0.0766 $0.0896 -$0.0130 $0.0771 $0.0825 -$0.0054 $0.0736 $0.0736 Net Loss increased by $56,906 over February 2021. Customer Revenue decreased as well as the related expenses of purchased power and transmission. These decreases can be explained by a small decrease in usage as well as costs associated with the Texas cold spell in 2021 that led to higher costs that were passed on to customers. Generator fuels had a fairly large increase due to increased run time even though gas prices were lower in 2022. Sales for Resale of $276,231 consisted of $31,981 in market sales, $98,000 in capacity sales to Rice Lake and $146,250 in capacity sales to AEP. February 2021 Sales for Resale of $256,531 included $12,281 in market sales, $146,250 in capacity sales to AEP, and $98,000 in capacity sales to Rice Lake. February 2020 Sales for Resale of $149,923 consisted of $423 in market sales, $136,000 in capacity sales to SMMPA, and $13,500 in capacity sales to AEP. Overall Purchased Power decreased by $301,656. MRES purchases decreased by $25,468 and market purchases/MISO costs decreased by $276,188. Power Cost Adjustment for February 2022 was $.00648/kwhr bringing in an additional $137,066 for the month and $243,139 YTD. Last year's power cost adjustment for February 2021 brought in $468,397 for the month and $673,497. HUTCHINSON UTILITIES COMMISSION GAS DIVISION FINANCIAL REPORT FOR FEBRUARY, 2022 2022 2021 Di %Chng 2022 2021 Di . %Chna Full YrBud %of Bud Gas Division Customer Revenue $ 1,824,477 $ 4,172,627 $ (2,348,150) (56.3%) $ 3,876,531 $ 5,537,038 $ (1,660,507) (30.0%) $ 12,029,836 32.2% Transportation $ 87,775 $ 83,480 $ 4,295 5.1% $ 176,261 $ 168,960 $ 7,301 4.3% $ 1,010,124 17.4% Electric Div. Transfer $ 59,724 $ 56,879 $ 2,844 5.0% $ 119,447 $ 113,758 $ 5,689 5.0% $ 716,383 16.7% Other Revenues $ 22,581 $ 18,280 $ 4,301 23.5% $ 51,975 $ 36,550 $ 15,425 42.2% $ 291,101 17.9% Interest Income $ 22,036 $ 23,466 $ (1,430) (6.1%) $ 38,596 $ 37,710 $ 886 2.3% $ 175,000 22.1% TOTAL REVENUES $ 2,016,592 $ 4,354,733 $ (2,338,140) (53.7%) $ 4,262,810 $ 5,894,017 $ (1,631,207) (27.7%) $ 14,222,444 30.0% Salaries & Benefits $ 132,054 $ 133,728 $ (1,674) (1.3%) $ 285,296 $ 278,692 $ 6,604 2.4% $ 1,951,296 14.6% Purchased Gas $ 1,243,235 $ 4,521,140 $ (3,277,905) (72.5%) $ 2,684,546 $ 5,354,598 $ (2,670,052) (49.9%) $ 7,630,061 35.2% Operating Expense $ 64,387 $ 59,863 $ 4,524 7.6% $ 136,776 $ 146,361 $ (9,585) (6.5%) $ 1,439,024 9.5% Depreciation $ 91,329 $ 90,832 $ 497 0.5% $ 182,658 $ 181,664 $ 995 0.5% $ 1,100,000 16.6% Transfers (City) $ 47,804 $ 47,804 $ - 0.0% $ 95,608 $ 95,608 $ 0 0.0% $ 573,649 16.7% Debt Interest $ 35,004 $ 40,221 $ (5,217) 0.0% $ 70,008 $ 80,442 $ (10,433) 13.0% $ 420,050 16.7% TOTAL EXPENSES $ 1,613,813 $ 4,893,588 $ (3,279,775) (67.0%) $ 3,454,894 $ 6,137,365 $ (2,682,471) (43.7%) $ 13,114,080 26.3% NET PROFIT/(LOSS) $ 402,779 $ (538,855) $ (174.7%)l 807,916 $ (2�y43,348) $ 1,051,264 (432.0%) $ 1,108,364 72.9% pp p941,,634 16.67%of Year Comp. 2022 2021 Di . %Chng 2022 2021 Di . %Chng Full YrBud %ofBud Gas Division Residential 79,767,502 77,779,389 1,988,113 2.56% 172,200,941 147,258,838 24,942,103 16.94% 439,919,000 39.1% Commercial 57,690,253 57,245,415 444,838 0.78% 123,522,018 106,109,941 17,412,077 16.41% 347,946,000 35.5% Industrial 103,030,318 103,357,677 (327,359) (0.329/,) 219,419,937 203,159,319 16,260,618 8.009/c 1 873,587,000 25.1% Total CF Sold 240,488,073 238,382,481 2,105,592 0.88%1 515,142,896 456,528,098 58,614,798 12.84%1 1,661,452,000 31.0% February February YTD YTD 2022 HUC 2022 2021 Change 2022 2021 Change Budget Target Gross Margin %: 35.2% -5.2% 40.3% 34.5% 7.3% 27.2% 39.9% 37%-40% Operating Income Per Revenue $ (%): 20.1% -12.5% 32.6% 19.0% -4.1% 23.0% 8.2% IIIIIIIIIIIIII Net Income Per Revenue $ (%): 20.0% -12.4% 32.3% 19.0% -4.1% 23.1% 7.8% IIIIIIIIIIIIII Contracted Customer Rev. per CF: $0.0062 $0.0186 -$0.0124 $0.0062 $0.0114 -$0.0052 $0.0056 Customer Revenue per CF: $0.0085 $0.0167 -$0.0082 $0.0085 $0.0127 -$0.0042 $0.0088 $0.0088 Total Power Supply Exp. per CF: $0.0053 $0.0190 ($0.0137) $0.0053 $0.0118 ($0.0065) $0.0050 $0.0050 February 2022 net income increased by $941,634. Revenues and purchased gas were both down due to the Texas situation in February 2021. There was no fuel cost credit adjustment for February 2022 and also zero YTD. February 2021 fuel cost adjustment totalled $1,100,197 for the month and $1,106,185 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, 2022 Electric Gas Total Division Division 2022 Total Net Change 2021 Total (YTD) 5,897,110.56 11,217,861.13 17,114,971.69 18,361,446.92 (1,246,475.23) 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 - 364,336.05 - 364,336.05 333,806.28 30,529.77 - 576,827.46 576,827.46 200,306.61 376,520.85 800,000.00 200,000.00 1,000,000.00 1,000,000.00 - 995,213.97 - 995,213.97 995,714.08 (500.11) - 537,512.46 537,512.46 511,912.50 25,599.96 522,335.64 2,188,694.02 2,711,029.66 2,711,029.66 - 12,623,219.22 15,994,714.07 28,617,933.29 29,432,258.05 (814,324.76) 2,081,334.63 1,979,408.64 4,060,743.27 6,760,444.41 (2,699,701.14) 47,207.51 47,207.50 94,415.01 97,985.30 (3,570.29) 2,128,542.14 2,026,616.14 4,155,158.28 6,858,429.71 (2,703,271.43) 1,744,909.15 509,970.37 2,254,879.52 1,984,155.96 270,723.56 328,760.21 61,744.87 390,505.08 271,541.60 118,963.48 146,173.28 - 146,173.28 95,261.58 50,911.70 1,630,746.00 - 1,630,746.00 313,166.00 1,317,580.00 - 543,582.00 543,582.00 104,390.00 439,192.00 3,850,588.64 1,115,297.24 4,965,885.88 2,768,515.14 2,197,370.74 18,602,350.00 19,136,627.45 37,738,977.45 39,059,202.90 (1,320,225.45) 690,368.40 3,899,918.60 4,590,287.00 4,590,287.00 - 111,114,999.08 42,656,015.41 153,771,014.49 150,532,501.02 3,238,513.47 (64,261,615.98) (19,354,785.96) (83,616,401.94) (79,497,838.83) (4,118,563.11) 32,448.50 36,388.83 68,837.33 1,471,346.71 (1,402,509.38) 47,576,200.00 27,237,536.88 74,813,736.88 77,096,295.90 (2,282,559.02) 66,178,550.00 46,374,164.33 112,552,714.33 116,155,498.80 (3,602,784.47) 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, 2022 Electric Gas Total Division Division 2022 700,000.00 1,657,077.41 120,214.05 124,024.55 2,601,316.01 14,030,000.00 526,947.12 2,219,565.00 94,162.00 431,660.51 91,639.00 2,041,393.00 19,435,366.63 1,730,000.00 185,608.32 1,425,311.15 105,012.49 42,971.23 3,488,903.19 7,780,000.00 696,030.83 739,855.00 31,387.00 163,481.47 31,615.85 680,464.00 10,122,834.15 44,141,867.36 32,762,426.99 44,141,867.36 32,762,426.99 2,430,000.00 185,608.32 3,082,388.56 225,226.54 166,995.78 6,090,219.20 14,030,000.00 7,780,000.00 1,222,977.95 2,219,565.00 94,162.00 739,855.00 31,387.00 595,141.98 123,254.85 2,041,393.00 680,464.00 29,558,200.78 76,904,294.35 76,904,294.35 Total 2021 2,240,000.00 185,608.32 7,220,561.02 249,626.50 176,427.61 10,072,223.45 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 75,380,409.68 75,380,409.68 Net Change Total (YTD) 190,000.00 (4,138,172.46) (24, 399.96) (9,431.83) (3,982,004.25) (700,000.00) (1,730,000.00) (219,065.28) (806,642.00) 10,108.00 (268,881.00) 3,369.00 10,277.61 (1,132.22) 1,917,976.00 639,325.00 (1,144,664.89) 1,523,884.67 1,523,884.67 Total Liabilities and Net Position 66,178,550.00 46,374,164.33 112,552,714.33 116,155,498.80 (3,602,784.47) Hutchinson Utilities Commission Cash -Designations Report, Combined February 28, 2022 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest February 2022 January 2022 Position Savings, Checking, Investments varies Total Operating Funds Debt Reserve Requirements Debt Reserve Requirements Total Restricted Funds Operating Reserve Rate Stabalization Funds PILOT Funds Catastrophic Funds Capital Reserves Total Designated Funds varies varies 28,617,933.29 27,954,750.14 663,183.15 Bond Covenants - sinking fund Bond Covenants -1 year Max. P & I Min 60 days of 2022 Operating Bud. Charter (Formula Only) Risk Mitigation Amount 5 Year CIP (2022-2026 Fleet & Infrastructure Maintenance) 28,617,933.29 27,954,750.14 663,183.15 1,532,726.43 1,255,150.90 277,575.53 2,711,029.66 2,711,029.66 - 4,243,756.09 3,966,180.56 277,575.53 6,432,490.00 6,432,490.00 941,163.51 942,656.53 (1,493.02) 1,867,192.00 1,867,192.00 1, 000, 000.00 1, 000, 000.00 3,450,000.00 3,450,000.00 13,690,845.51 13,692,338.53 (1,493.02) YE YE YE YE YTD HUC 2018 2019 2020 2021 2022 Target Debt to Asset 37.7% 34.9% 32.3% 30.8% 31.7% Current Ratio 3.93 5.11 5.67 5.22 5.14 RONA 3.16% 2.25% 3.62% 0.41% 0.42% Change in Cash Balance (From 12131114 to 212812022) Month End Electric Elec. Change Natural Gas Gas Change Total Total Change 2/28/2022 12,623,219 15,994,714 28,617,933 12/31/2021 12,870,253 (247,034) 15,086,000 908,714 27,956,253 661,680 12/31/2020 14,239,233 (1,368,981) 15,019,173 66,827 29,258,406 (1,302,153) 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 February 28, 2022 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest February 2022 January 2022 Position Savings, Checking, Investments varies varies varies 28,617,933.29 27,954,750.14 663,183.15 Total HUC Operating Funds 28,617,933.29 27,954,750.14 663,183.15 Debt Restricted Requirements Debt Restricted Requirements Total Restricted Funds Bond Covenants - sinking fund Bond Covenants -1 year Max. P & 1 995,213.97 522,335.64 1,517,549.61 896,809.28 522,335.64 1,419,144.92 98,404.69 - 98,404.69 Excess Reserves Less Restrictions, Electric 11,105,669.61 11,073,360.88 32,308.73 Operating Reserve Min 60 days of 2022 Operating Bud. 4,430,143.33 4,430,143.33 - Rate Stabalization Funds $400K-$1.2K 364,336.05 364,336.05 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 (2022-2026 Fleet & Infrastructure Maintenance) 2,750,000.00 2,750,000.00 Total Designated Funds 9,638,022.38 9,638,022.38 - Excess Reserves Less Restrictions & Designations, Electric 1,467,647.23 1,435,338.50 32,308.73 YE YE YE YE YTD APPA Ratio HUC 2018 2019 2020 2021 2022 SK-10K Cust. Target Debt to Asset Ratio (* w/Gen.) 35.7% 34.1% 32.6% 32.2% 33.3% 50.1% Current Ratio 3.63 5.26 6.18 5.70 5.94 2.43 RONA -0.3% -0.4% 2.5% -1.2% -0.6% NA >0% Hutchinson Utilities Commission Cash -Designations Report, Gas February 28, 2022 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest February 2022 January 2022 Position Savings, Checking, Investments varies varies Total HUC Operating Funds uzz;xilivision I`111111``111111```11`11`` Debt Restricted Requirements Bond Covenants - sinking fund Debt Restricted Requirements Bond Covenants -1 year Max. P & I Total Restricted Funds Operating Reserve Rate Stabalization Funds PILOT Funds Catastrophic Funds Capital Reserves Total Designated Funds varies 28,617,933.29 27,954,750.14 663,183.15 28,617,933.29 27,954,750.14 663,183.15 Min 60 days of 2022 Operating Bud. $200K-$600K Charter (Formula Only) Risk Mitigation Amount 5 Year CIP ( 2022-2026 Fleet & Infrastructure Maintenance) 537,512.46 358,341.62 179,170.84 2,188,694.02 2,188,694.02 - 2,726,206.48 2,547,035.64 179,170.84 2,002,346.67 2,002,346.67 576,827.46 578,320.48 (1,493.02) 573,649.00 573,649.00 200,000.00 200,000.00 700,000.00 700,000.00 4,052,823.13 4,054,316.15 (1,493.02) YE YE YE YE YTD HUC 2018 2019 2020 2021 2022 APGA Ratio Target Debt to Asset 40.7% 36.1% 32.0% 28.8% 29.4% TBD Current Ratio 4.33 4.96 5.18 4.79 4.55 TBD RONA 8.3% 6.4% 5.3% 2.9% 2.0% TBD HUTCHINSON UTILITIES COMMISSION Investment Report For the Month Ended February 28, 2022 Interest Current Date of Date of Par Current Purchase Unrealized Premium Next Institution Description Rate YlM Purchase Maturity Value Value Amount Gain/(Loss) (Discount) Call Date Wells Fargo Money Market 0.010 % 0.010 % NA NA - 15,797.35 - - - N/A Wells Fargo FHLB 0.300% 0.587% 01/29/2021 01/29/2026 295,000.00 283,680.85 295,000.00 (11,319.15) - 07/29/2022 Wells Fargo FHLB 0.300% 0.525% 02/09/2021 02/09/2026 470,000.00 451,425.60 470,000.00 (18,574.40) - 08/09/2022 Wells Fargo FHLB 0.300% 1.432% 04/29/2021 04/29/2026 400,000.00 391,768.00 400,000.00 (8,232.00) - 06/29/2022 Wells Fargo FHLB 0.650% 1.069% 06/30/2021 06/30/2026 300,000.00 290,016.00 300,000.00 (9,984.00) - 03/30/2022 Wells Fargo FHLB 0.500 % 1.281 % 09/30/2021 09/30/2026 250,000.00 242,770.00 250,000.00 (7,230.00) - 03/30/2022 Wells Fargo CD's 1.600 % 1.600 % 02/23/2022 02/24/2025 245,000.00 243,596.15 245,000.00 (1,403.85) - N/A Wells Fargo CD's 2.000% 2.000% 08/29/2020 08/22/2022 200,000.00 201,126.00 200,000.00 1,126.00 - 03/29/2022 Wells Fargo CD's 0.300% 0.300% 01/08/2021 01/08/2024 245,000.00 239,788.85 245,000.00 (5,211.15) - N/A Wells Fargo CD's 0.450 % 0.450 % 04/14/2021 04/15/2024 245,000.00 239,208.20 245,000.00 (5,791.80) - 08/14/2022 Wells Fargo CD's 0.550 % 0.550 % 08/02/2021 08/05/2024 245,000.00 238,532.00 245,000.00 (6,468.00) - N/A Wells Fargo CD's 1.100% 1.100% 01/31/2022 01/31/2025 245,000.00 240,266.60 245,000.00 (4,733.40) - 07/31/2022 Wells Fargo CD's 1.000 % 1.000 % 05/19/2021 05/19/2026 245,000.00 236,170.20 245,000.00 (8,829.80) - N/A Wells Fargo CD's 1.000 % 1.000 % 07/28/2021 07/28/2026 245,000.00 234,675.70 245,000.00 (10,324.30) - N/A Wells Fargo CD's 1.050 % 1.050 % 08/08/2021 08/25/2026 238,000.00 228,891.74 238,000.00 (9,108.26) - N/A Wells Fargo CD's 1.000% 1.207% 07/31/2021 07/13/2028 245,000.00 231,473.55 245,000.00 (13,526.45) 06/13/2022 Broker Total 29.3% 4,113,000.00 4,009,186.79 4,113,000.00 (119,610.56) - Cetera Investment Services Money Market 0.010 % 0.010 % N/A N/A - 36,988.28 - - - N/A Cetera Investment Services Municipal Bonds 2.655% 2.208% 12/11/2017 03/01/2022 300,000.00 300,000.00 305,314.92 (5,314.92) 5,314.92 N/A Cetera Investment Services Municipal Bonds 3.000% 3.118% 12/20/2018 08/01/2022 50,000.00 50,341.50 50,377.67 (36.17) 377.67 N/A Cetera Investment Services Municipal Bonds 3.650% 3.004% 12/20/2018 02/01/2023 250,000.00 254,430.00 256,165.00 (1,735.00) 6,165.00 N/A Cetera Investment Services Municipal Bonds 3.240% 3.240% 11/17/2017 02/15/2023 80,000.00 79,186.40 69,633.48 9,552.92 (10,366.52) N/A Cetera Investment Services Municipal Bonds 3.075% 3.236% 12/20/2018 06/01/2023 50,000.00 50,927.50 49,746.15 1,181.35 (253.85) N/A Cetera Investment Services Municipal Bonds 5.290% 2.724% 04/18/2019 06/01/2023 260,000.00 271,806.60 291,059.96 (19,253.36) 31,059.96 N/A Cetera Investment Services Municipal Bonds 2.500% 3.181 % 12/20/2018 08/01/2023 35,000.00 35,302.40 34,320.05 982.35 (679.95) N/A Cetera Investment Services Municipal Bonds 3.400% 3.148% 12/20/2018 11/01/2023 125,000.00 128,278.75 126,376.25 1,902.50 1,376.25 N/A Cetera Investment Services Municipal Bonds 3.400% 3.148% 12/20/2018 11/01/2023 65,000.00 66,704.95 65,715.65 989.30 715.65 N/A Cetera Investment Services Municipal Bonds 2.854% 3.173% 12/20/2018 02/01/2024 100,000.00 102,045.00 99,605.96 2,439.04 (394.04) N/A Cetera Investment Services Municipal Bonds 2.977% 3.246% 12/20/2018 03/15/2024 250,000.00 256,402.50 248,743.99 7,658.51 (1,256.01) N/A Cetera Investment Services Municipal Bonds 1.940% 1.821 % 01/13/2020 05/01/2024 65,000.00 65,262.60 65,570.70 (308.10) 570.70 N/A Cetera Investment Services Municipal Bonds 5.742% 3.658% 04/11/2019 08/01/2024 275,000.00 291,227.75 302,390.00 (11,162.25) 27,390.00 N/A Cetera Investment Services Municipal Bonds 2.528% 1.918% 01/13/2020 12/01/2024 100,000.00 101,737.00 102,999.53 (1,262.53) 2,999.53 N/A Cetera Investment Services Municipal Bonds 3.922% 3.429% 12/20/2018 12/01/2024 204,000.00 214,616.16 208,181.10 6,435.06 4,181.10 N/A Cetera Investment Services Municipal Bonds 4.400% 3.221 % 04/11/2019 07/01/2025 500,000.00 521,550.00 539,101.11 (17,551.11) 39,101.11 07/01/2023 Cetera Investment Services Municipal Bonds 5.640% 3.007% 04/18/2019 08/15/2025 205,000.00 187,591.40 169,737.95 17,853.45 (35,262.05) N/A Cetera Investment Services Municipal Bonds 3.743% 2.740% 04/18/2019 09/15/2025 215,000.00 227,414.10 228,334.53 (920.43) 13,334.53 N/A Cetera Investment Services Municipal Bonds 3.379% 1.934% 08/19/2019 10/01/2025 310,000.00 323,667.90 339,739.18 (16,071.28) 29,739.18 N/A Cetera Investment Services Municipal Bonds 5.600% 1.186% 07/28/2020 12/01/2025 45,000.00 51,093.90 55,250.55 (4,156.65) 10,250.55 N/A Cetera Investment Services Municipal Bonds 4.250% 3.258% 04/11/2019 01/01/2026 500,000.00 538,190.00 529,769.03 8,420.97 29,769.03 N/A Cetera Investment Services Municipal Bonds 2.420% 1.175% 10/06/2020 03/01/2026 100,000.00 100,941.00 106,734.28 (5,793.28) 6,734.28 N/A Cetera Investment Services Municipal Bonds 1.609% 1.124% 09/24/2020 04/01/2026 285,000.00 277,957.65 292,370.10 (14,412.45) 7,370.10 N/A Cetera Investment Services Municipal Bonds 6.690% 3.356% 04/18/2019 04/15/2026 60,000.00 54,279.00 47,545.20 6,733.80 (12,454.80) N/A Cetera Investment Services Municipal Bonds 5.900 % 1.451 % 07/28/2020 06/15/2026 75,000.00 84,768.75 93,741.75 (8,973.00) 18,741.75 N/A Cetera Investment Services Municipal Bonds 0.000% 1.415% 08/13/2020 07/01/2026 100,000.00 90,322.00 92,037.00 (1,715.00) (7,963.00) N/A Cetera Investment Services Municipal Bonds 3.250% 2.903% 04/18/2019 08/01/2026 500,000.00 520,530.00 514,790.69 5,739.31 14,790.69 N/A Cetera Investment Services Municipal Bonds 2.150% 2.203% 07/01/2019 12/01/2026 40,000.00 39,258.00 40,150.64 (892.64) 150.64 N/A Cetera Investment Services Municipal Bonds 1.664% 1.150% 08/27/2020 09/01/2026 225,000.00 218,830.50 231,696.00 (12,865.50) 6,696.00 N/A Cetera Investment Services Municipal Bonds 2.375% 1.816% 09/04/2019 12/01/2026 90,000.00 91,449.00 93,395.70 (1,946.70) 3,395.70 N/A Cetera Investment Services Municipal Bonds 2.350% 2.191 % 07/01/2019 12/01/2026 500,000.00 497,825.00 505,385.00 (7,560.00) 5,385.00 N/A Cetera Investment Services Municipal Bonds 3.000% 1.991 % 08/19/2019 02/01/2027 50,000.00 52,537.00 53,551.00 (1,014.00) 3,551.00 N/A Cetera Investment Services Municipal Bonds 3.150% 2.034% 08/19/2019 03/15/2027 100,000.00 104,518.00 109,138.50 (4,620.50) 9,138.50 N/A Cetera Investment Services Municipal Bonds 3.332% 3.120% 04/18/2019 04/15/2027 500,000.00 525,995.00 507,783.94 18,211.06 7,783.94 N/A Cetera Investment Services Municipal Bonds 3.865% 2.470% 08/19/2019 05/01/2027 55,000.00 58,430.90 60,986.48 (2,555.58) 5,986.48 05/01/2025 Cetera Investment Services Municipal Bonds 3.553% 2.289% 08/19/2019 05/01/2027 55,000.00 57,666.95 60,468.04 (2,801.09) 5,468.04 05/01/2026 Cetera Investment Services Municipal Bonds 3.230% 1.828% 08/19/2019 05/15/2027 145,000.00 153,149.00 160,827.31 (7,678.31) 15,827.31 N/A Cetera Investment Services Municipal Bonds 1.925% 1.719% 11/23/2021 06/01/2027 310,000.00 302,088.80 313,447.46 (11,358.66) 3,447.46 Make -Whole Call Cetera Investment Services Municipal Bonds 1.861 % 1.254% 06/07/2021 07/01/2027 410,000.00 401,832.80 412,336.71 (10,503.91) 2,336.71 N/A Cetera Investment Services Municipal Bonds 3.000% 3.101 % 05/18/2020 09/01/2027 65,000.00 67,706.60 69,180.58 (1,473.98) 4,180.58 09/01/2025 Cetera Investment Services Municipal Bonds 2.817% 2.817% 09/25/2019 10/01/2027 35,000.00 30,050.30 27,969.55 2,080.75 (7,030.45) 05/01/2025 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 Cetera Investment Services Municipal Bonds 1.415% 1.793% 11/23/2021 03/01/2028 100,000.00 95,008.00 98,088.31 (3,080.31) (1,911.69) N/A Cetera Investment Services Municipal Bonds 3.270 % 2.141 % 08/19/2019 03/15/2028 155,000.00 162,911.20 170,805.09 (7,893.89) 15,805.09 09/15/2027 Cetera Investment Services Municipal Bonds 2.974% 2.574% 11/07/2019 04/01/2028 75,000.00 75,534.00 77,253.00 (1,719.00) 2,253.00 N/A Cetera Investment Services Municipal Bonds 2.125% 1.904% 11/23/2021 06/01/2028 110,000.00 107,169.70 111,525.06 (4,355.36) 1,525.06 N/A Cetera Investment Services Municipal Bonds 2.547% 1.240% 08/10/2021 07/01/2028 125,000.00 125,946.25 136,101.16 (10,154.91) 11,101.16 N/A Cetera Investment Services Municipal Bonds 3.140% 2.004% 08/19/2019 08/01/2028 500,000.00 525,145.00 547,105.00 (21,960.00) 47,105.00 08/01/2027 Cetera Investment Services Municipal Bonds 3.000% 2.199% 05/19/2020 08/15/2028 90,000.00 93,537.00 95,401.80 (1,864.80) 5,401.80 08/15/2025 Cetera Investment Services Municipal Bonds 1.692% 1.813% 11/24/2021 10/01/2028 180,000.00 172,413.00 179,188.74 (6,775.74) (811.26) N/A Cetera Investment Services Municipal Bonds 3.000% 1.942% 08/19/2019 06/01/2029 115,000.00 121,693.00 125,961.80 (4,268.80) 10,961.80 N/A Cetera Investment Services Municipal Bonds 4.000% 3.214% 03/22/2021 09/01/2031 60,000.00 63,270.00 64,292.00 (1,022.00) 4,292.00 09/01/2024 Cetera Investment Services Municipal Bonds 3.500% 2.699% 11/23/2021 02/01/2033 50,000.00 51,583.00 54,390.44 (2,807.44) 4,390.44 02/01/2025 Cetera Investment Services Municipal Bonds 3.250% 2.655% 08/19/2019 06/01/2029 75,000.00 78,032.25 79,860.31 (1,828.06) 4,860.31 02/01/2025 Cetera Investment Services Municipal Bonds 3.125% 2.303% 11/23/2021 10/01/2034 50,000.00 52,353.50 54,773.69 (2,420.19) 4,773.69 04/01/2027 Cetera Investment Services Municipal Bonds 3.125% 2.456% 11/23/2021 02/01/2035 50,000.00 52,112.00 54,236.11 (2,124.11) 4,236.11 02/01/2026 Broker Total 70.7% 9,419,000.00 9,661,608.84 9,780,651.20 (156,030.64) 361,651.20 TOTAL INVESTMENTS 100.0% Product Type 2/28/2022 Total Value % of Total 1/31/2022 Total Value % of Total Monthly Change Maturity Current Value Less than 1 year $937,869.53 1-2years 894,854.05 % 6.9 % 6.5% El Money Market $52,785.63 0.4% $11,500.86 0.1% $41,284.77 CD's 2,333,728.99 17.1% 2,363,177.87 17.2% (29,448.88) 2-3years 1,890,848.96 13.8% Government Bonds 1,659,660.45 12.1% 1,672,933.20 12.2% (13,272.75) 3 - 4 years 2,584,613.75 18.9% Municipal Bonds 9,624,620.56 70.4% 9,694,029.95 70.5 % 69,409.39 4 - 5 years 3,652,989.54 26.7% TOTAL $13,670,795.63 100.0% $13,741,641.88 100.0% ($70,846.25) 5+ years 3,709,619.80 27.1% TOTAL $13,670,795.63 100.0% Money Market $4,000,000.00 0.4% � CD's $3,652,990 $3,709,620 IIVm^ $3,500,000.00 „ $3,000,000.00 ......... ......... ........_ ......... ....._ ............. $2,584,614 $2,500,000.00 ,. $2,000,000.00 .. ......... ........ $1,890,849 .. .... ......... i ........ ......... .. .... ......... r. $1, 500, 000.00 .... $937,870 $89,4, 854 $1,000,000.00 $500 000.00 .._ Municipal Bonds Government Bonds $0.00 .,r ......,, r ......... r ........ r........ .....r.... .........r .................� ,. 704% 12.1% Less than i 2years 2-3years 3-4 years 4 Syears 5+years year ELECTRIC DIVISION Operating Revenue February 2022 CLASS AMOUNT KWH /KWH Street Lights $20.71 380 $0.05450 Electric Residential Service $459,563.96 4,147,503 $0.11080 All Electric Residential Service $35,150.46 362,038 $0.09709 Electric Small General Service $159,240.44 1,502,756 $0.10597 Electric Large General Service $600,941.47 6,475,160 $0.09281 Electric Large Industrial Service $694,207.24 8,622,000 $0.08052 Total $1,949,124.28 21,109,837 $0.09233 Power Adjustment $0.00648 Rate Without Power Adjustment $0.08585 Electric Division Year -to -Date M2022$A--t 02021$A--t ■2022KWH110 02021 KWH110 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Ell Street Lights Residential All Elec. Small Gen. Large Gen. Large For Resale Total Resid. Srv. Srv. Industrial NOTE: Sales for resale includes capacity sales and market sales. NATURAL GAS DIVISION Operating Revenue FEBRUARY 2022 CLASS AMOUNT MCF /$ MCF Residential $677,466.55 79,768 $8.49296 Commercial $497,278.28 57,690 $8.61983 Large Industrial $35,264.19 4,252 $8.29355 Large Industrial Contracts $614,467.90 98,778 $6.22070 Total $1,824,476.92 240,488 $7.58656 Fuel Adjustment $0.00000 Rate Without Fuel Adjustment $7.58656 Natural Gas Division Year -to -Date ® 2022 $ Amount 0 2021 $ Amouni ■ 2022 MCF 132021 MCF 6,000,000 5,500,000 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 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 ,c�,« Board Action Form 'AlUTlt Agenda Item: Approve Policy Changes Jeremv Carter App Changes to Policies es BACKGROUND/EXPLANATION OFAGENDA ITEM: As part of HUC's standard operating procedures, a continual policy review is practiced. The following revisions to the policies below are recommended. Deferred Compensation Purchasing Policy BOARD ACTION REQUESTED: Approve Policy Changes EXEPMT DEFERRED COMPENSATION --peFiiiJ, HUC offers a 457 deferred compensation plan, which allows employees to place a portion of their earnings through payroll deduction into a tax deferred investment program. Taxes on money set aside are deferred until the time the money is withdrawn. HUC does not contribute to this 457 deferred compensation plan. For enrollment information, contact payroll. NON-EXEMPT DEFERRED COMPENSATION --peFiiiJ, HUC offers a 457 deferred compensation plan, which allows employees to place a portion of their earnings through payroll deduction into a tax deferred investment program. Taxes on money set aside are deferred until the time the money is withdrawn. HUC does not contribute to this 457 deferred compensation plan. For enrollment information, contact payroll. Amended !Vlarcti 30, 2022 I'-Iber_24;,_-2024- POLICY ON PURCHASING State Statute 471.345 Hutchinson Utilities Commission hereby adopts a general policy on the purchasing of equipment, supplies and services. Inventory Agent is authorized to create requisitions and approve purchase orders for purchases associated with Hutchinson Utilities' standard inventory part numbers, which are based on set order points and order quantities. If requirements exceed current order quantities, either an approved Bill of Materials or an approved requisition will be required. All other purchases shall require supervisor permission. Emergency situations may require a deviation from this policy to ensure electric and/or natural gas services to the customers of the Hutchinson Utilities. Joint purchasing of materials, supplies and services shall be considered with other departments only when net economic benefits can be achieved. When a tie exists between low bids, preference will be given to a local supplier. For purchases when the estimate is more than $175,000: 1. The Hutchinson Utilities Commission will authorize permission to advertise for bids. 2. Specifications shall be made available to all prospective bidders. 3. Bids will be opened at a public bid opening. Date will be set in the advertisement for bids. 4. The staff will review bids and may recommend to the Hutchinson Utilities Commission to accept the lowest responsible bidder meeting specifications. 5. Hutchinson Utilities Commission will enter into a contract with the responsible bidder. For purchases between $25,000 and $175,000: 1. The Hutchinson Utilities Commission staff will solicit written, informal quotations from at least two (2) suppliers, if possible, and tabulate the results. 2. Fuel purchases for electrical generation is an exception, for additional exceptions refer to Minnesota Statutes 2017, 471.345 Uniform Municipal Contracting Law. 3. Staff will evaluate the quotes and, in its discretion, determine which quotation is most suitable for HUC and make a recommendation thereon to the commission. 4. Hutchinson Utilities Commission will approve the quote. For purchases up to $25,000- 1 . General Manager authorized to approve purchases up to $25,000. 2. For purchases of $5,000 - $25,000, the Hutchinson Utilities Commission staff may solicit written, informal quotations from at least two (2) suppliers and tabulate the results or, in the alternative purchase equipment, supplies or services on the open market. 3. Staff will recommend acceptance of purchases of $5,000 - $25,000 to the General Manager for approval. For purchases up to $5,000: Directors, Managers, and the City Attorney are authorized to approve requisitions via the purchasing software for purchases requiring a purchase order number. If purchase order numbers are not required each department may use their assigned credit card. 1. Directors, Managers, or the City Attorney will approve all item requests prior to purchasing the item. 2. Receipts will be given to each Director, Manager, or City Attorney as items are purchased to initial, assign appropriate account number and give a description of the item purchased; then forward to Accounting. 3. Accounting will keep a file for each department until monthly credit card statements are received and reconciled. Petty cash may be used for purchases less than $25.00. Employees may make local purchases with prior approval from their Director/Manager. The employee has the option of using a HUC credit card, paying cash for the item, if less than $25.00, and being reimbursed from petty cash, or making the purchase at a local retailer with whom we have an account established. All receipts must to be turned in to the appropriate Director/Manager to initial, assign appropriate account number and then forward to the financial manager. CREDIT CARDS A purchase by credit card must comply with all statutes and rules applicable to Hutchinson Utilities Commission (HUC) purchases. Credit card purchases must comply with the following requirements: Minn. Stat. 412.271, subd. 2 and 471.38, subd.1. Claims presented to HUC for payment must be in writing and itemized. Bills from credit card companies do not contain the detail necessary to satisfy these requirements; therefore, HUC must retain invoices and itemized receipts for items charged to a credit card. The Office of the State Auditor strongly urges local government units to develop a comprehensive credit card use policy to avoid misappropriation of funds or other misuse of the credit card. The following are authorized to make credit card purchases on behalf of HUC: General Manager Natural Gas Director Electric Transmission/Distribution Manager Production Manager Engineering Services Manager Inventory Agent Administrative Coordinator Fl l a ins Qe ir°ao ir° Crew e Chief Ialiiretlein since Crew Chief Company purchases are allowed to be made with a credit card following all HUC spending limit requirements. No personal purchases are to be made with the credit card. Receipts will be given to each department Director/Manager as items are purchased to initial, assign appropriate account numbers and give a description of the item purchased. The receipt then gets forwarded to the financial manager. The financial manager will keep a file for each department until monthly credit card statements are received and reconciled. The financial manager has the authority to approve and question all credit card purchases in so far as the policy applies. The full amount of the statement must be paid each month. FIXED ASSET CAPITALIZATION The Hutchinson Utilities Commission (HUC) will regard fixed assets as capitalized when all of the following criteria are met- 1 . Assets purchased, built or leased have useful lives of one year or more. 2. The cost of the asset (including installation) is $5,000 or more, or work order infrastructure assets whose cost is less than $5,000 individually but the aggregate total is $5,000 or more. 3. The cost of repairing or renovating the asset is $5,000 or more and prolongs the life of the asset. Costs associated with purchasing and implementing software, software maintenance and customer support are considered expenditures and will not be capitalized. Other Considerations: 1. REPAIR is an expenditure that keeps the property in ordinary efficient operating condition. The cost of the repair does not add to the value or prolong the life of the asset. All repair expenditures are charged to the appropriate department and fund. 2. IMPROVEMENTS are expenditures for additions, alterations and renovations that appreciably prolong the life of the asset, materially increase its value or adapt it to a different use. Improvements of the nature are capitalized. Examples of Repairs vs. Improvements Repairs=Expenditures All items -life less than one year All items under $5,000 Property maintenance, wall repair Replacement of machine parts to keep machine in normal operating condition Property restoration (rebuilding) for normal operations Existing building repairs Replacement of small sections of wiring, pipes or light fixtures Patching walls, minor repairs of floors, painting, etc. Patching driveways Improvements=Capitalized Assets Life of more than one year All items $5,000 or more Property rebuilding Replacement of machine parts that prolong the useful life Property restoration for something different or better Building regulation conformity Major replacement of wiring, lighting, pipes or sewer Installation of floor, wall, roof, wall covering, etc. New driveway or major repair Cleaning drapery, carpet, furniture New drapery, carpets, furniture Depreciation Method — Straight Line over the following 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 HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Approve Requisition 009080 to KGM Presenter: John Webster Agenda Item Type: Time Requested (Minutes): 2 New Business Attachments,: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The Natural Gas Division has a need for additional residential diaphragm meters to replace the 1970's era meters being removed, and retired, as well as for new construction. KGM - $27,298.00 Delivery: 1 Week Groebner's - $25,032.00 Delivery: 70 Weeks Due to the excessive delivery from Groebner's, Hutchinson Utilities is requesting that the requisition to KGM be approved. Monies are in place in the Natural Gas Division's 2022 capital budget for this purchase. BOARD ACTION REQUESTED: Approval of requisition number 009080. Fiscal impact: $27,298.00 + Tax Included in current budget: Yes Budget Change: No PROJECT SECTION: Total Project Cost: Remaining Cost: HUTCHINSON UTILITIES ra,�itiaa° oni,initIIIEwasrioI'll KGM PO BOX 472063 TULSA, OK 74147 Note Description: Residential Meters PURCHASE REQUISITION HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 Date Requisition No. 03/09/2022 009080 Required by: Requested by: brusch Item No. part No. Description Qty Unit Due Date Unit Price Ext. Amount AMERICAN AC-250TC, 20LT CONNECTIONS, 5# - CASE, 2' AND 1/2' ODOMETER INDEX, 1 "PRICE INCLUDES CITY BADGE NUMBER 200.00 EA 03/23/2022 $136.490 $27,298.00 AND 2 RIVETS". STARTING BADGE NUMBER B7572, REF. QUOTE #30552 MFG. PART: Total: 27,298.00 Date Printed: 03/11/2022 Requisitioned By: brusch Page: 1/1 KOOINS GINS MEASUREMENT WILNAT, ANC 18661 178th Street Tonganoxie, KS 66086 Phone: (913) 728-2500 !M) Fax: (913) 728-2510 Name / Address HUTCHINSON UTILITIES ATTN: ACCOUNTS PAYABLE 225 MICHIGAN STREET SE HUTCHINSON, MN 55350 huc-ap@ci-hutchinson.mn.us Quote ......................................................................................................................................... Date Quote # 2/17/2022 30552 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Phone # Fax # E-mail Web Site (913) 728-2500 (913) 728-2510 NHernandez@kgmgas.com kgmgas.com John Webster From: Troy Dahlin <tdahlin@groebner.com> Sent: Wednesday, March 2, 2022 11:44 AM To: John Webster Subject: Fwd: Residential Meters I RTERIIP' AL EIVIAflIALERI"": This message originated from outside the City of Hutchinson email system. Unless you recognize the sender and know the content, DO NOT click links or open attachments. John Here is the quote with badges on the meters. Currently the lead time is 70 weeks. Sent from my iPhone Begin forwarded message: From: Ben Feuerborn <BFeuerborn@groebner.com> Date: March 2, 2022 at 11:13:44 AM CST To: John Nylin <JNylin@groebner.com>, Troy Dahlin <tdahlin@groebner.com> Subject: RE: Residential Meters Yes, it is 70 weeks currently. Thanks! Ben Feuerborn a Product Manager - Measurement GROEBNER a 19935 West 1615t Street, Suite A e Olathe, KS 66062 m: 913-304-4338 a o: 913-384-1510 e This e-mail, and any files transmitted with it, is confidentlaI and is intended solely for the use of the addressee. If you are not the addressee, please delete this e-mail from your system. Any use of this e-mail by unintended recipients is strictly prohibited. GROEBNER does not accept liability for any errors or omissions which arise as a result of electronic transmission. From: John Nylin <JNylin@groebner.com> Sent: Wednesday, March 2, 2022 11:13 AM To: Troy Dahlin <tdahlin@groebner.com> Cc: Ben Feuerborn <BFeuerborn@groebner.com> Subject: RE: Residential Meters Troy: Here is the revised quote with the adder for the badges. If they want badge numbers then this item is not able to ship from our stock in Rogers, MN. Ben, would you be able to estimate the lead time from Sensus? John Nylin • Inside Sales GROEBNER • 21801 Industrial Blvd. • Rogers, MN 55374 m: 612-964-5679 • o: 612-930-0900 • f. 612-930-0930 GROUP �4 5'06114 This e-mail, and any files transmitted with it, is confidential and is intended solely for the use of the addressee. If you are not the addressee, please delete this e-mail from your system. Any use of this e-mail by unintended recipients is strictly prohibited. GROEBNER does not accept liability for any errors or omissions which arise as a result of electronic transmission. From: Troy Dahlin <Lallrlliu�t rumrcu��b> Sent: Wednesday, March 2, 2022 10:31 AM To: John Nylin <jy> Cc: Ben Feuerborn <.BIC:=elie rborn.groe bner.corn> Subject: FW: Residential Meters John We need to requote this for Hutchinson with badging per Ben F. below. THANKS Troy Dahlin • Territory Manager GROEBNER • 21801 Industrial Blvd. • Rogers, MN 55374 m: 612-246-8126 • o: 612-930-0900 • t 612-930-0930 This e-mail, and any files transmitted with it, is confidential and is intended solely for the use of the addressee. If you are not the addressee, please delete this e-mail from your system. Any use of this e-mail by unintended recipients is strictly prohibited. GROEBNER does not accept liability for any errors or omissions which arise as a result of electronic transmission. From: Ben Feuerborn <I li eriier'bc,)rn@gu Qc,13rne. r.c:)i > Sent: Wednesday, March 2, 2022 8:51 AM To: Troy Dahlin <tdalhUn ' aroebner.coirp Subject: RE: Residential Meters Let's add $2.50 to be safe from our side per meter. J said the price for a badge is going up for us. This is for a standard metal badge that will say customer name and then they would need to specify the badge # ranges on their PO to us. Thanks! Ben Feuerborn a Product Manager - Measurement GROEBNER • 19935 West 16151 Street, Suite A • Olathe, KS 66062 m: 913-304-4338 • o: 913-384-1510 • go This e-mail, and any files transmitted with it, is confidential and is intended solely for the use of the addressee. If you are not the addressee, please delete this e-mail from your system. Any use of this e-mail by unintended recipients is strictly prohibited. GROEBNER does not accept liability for any errors or omissions which arise as a result of electronic transmission. From: Troy Dahlin <dh411111il @ Sent: Tuesday, March 1, 2022 2:50 PM To: Ben Feuerborn <IIIi::jJl.u':':IIIJ..u°°„um re) ., r ibneir cotn> Subject: FW: Residential Meters Ben Looks like they want the badge pricing! THANKS Troy Dahlin • Territory Manager GROEBNER • 21801 Industrial Blvd. • Rogers, MN 55374 m: 612-246-8126 • o: 612-930-0900 • f: 612-930-0930 This e-mail, and any files transmitted with it, is confidential and is intended solely for the use of the addressee. If you are not the addressee, please delete this e-mail from your system. Any use of this e-mail by unintended recipients is strictly prohibited. GROEBNER does not accept liability for any errors or omissions which arise as a result of electronic transmission. From: John Webster <J" "63"s' is lll'l ut' „IIImint"'m iinillil miin.g y> Sent: Tuesday, March 1, 2022 2:49 PM To: Troy Dahlin rJ�; . ,, hBlur„ Subject: RE: Residential Meters W IR AL..,LY DC) NEED "1[,¢":.;b I-IA.'VrE ` 111.'. SOIN BADGE, �J C "B�„ 17 l..I"' DP (0) 2„34-5J;7 (;° 20) 583-9323 MOB11L Y,IVEB' q"EW�IIr P I HLI"F(..',H1NS(XII-11S_In' .........,..m.m........ 22 I I :1°-III":'IAN S,i, SE l-°fl&.D°'I"a...IIN:I" ON, Sul1'"J 55�.' 50 From: Troy Dahlin ��� rl�dIII �ul�u� ,. ,, ,, ," ln> Sent: Tuesday, March 1, 2022 2:41 PM To: John Webster <Ilk',Iil°:.".I.uwlllapl.u:u uliluiirlr"m„.> Subject: RE: Residential Meters EXTERNAL I'.I AIL. ALERT: This message originated from outside the City of Hutchinson email system. Unless you recognize the sender and know the content, DO NOT click links or open attachments. John It would be an additional cost plus it would come direct from SENSUS which would mean delivery date of August 2023. The original quote assumed delivery from our inventory. Let me know which way you want to go. THANKS Troy Dahlin • Territory Manager GROEBNER - 21801 Industrial Blvd. • Rogers, MN 55374 m: 612-246-8126 • o: 612-930-0900 • f: 612-930-0930 This e-mail, and any files transmitted with it, is confidential and is intended solely for the use of the addressee. If you are not the addressee, please delete this e-mail from your system. Any use of this e-mail by unintended recipients is strictly prohibited. GROEBNER does not accept liability for any errors or omissions which arise as a result of electronic transmission. From: John Webster <np ehst : @Ihutchinso nirnrin. OV> Sent: Tuesday, March 1, 2022 11:10 AM To: Troy Dahlin <tdn0:liiuliiu�ulgair:�o�m�nn> Subject: Residential Meters TROY, I HAVE ATTACHED A QUOTE THAT I RECEIVED FROM GROEBNER'S FOR RESIDENTIAL METERS. IS IT POSSIBLE TO GET "HUTCHINSON SPECIFIC" SERIAL BADGES ADDED TO THE METERS? IF SO, WHAT WOULD BE THE ADDITIONAL COST? THANK YOU JOHN C. WEBS R — EIT, RGDP DIRECTOR — NATURAL GAS DIVISION (320) 234-0507 (320) 583-9323 MOBILE ➢ I' 13S1..'I':l=u� �1..°1.1L.1'.1."�"';�H1N � �1'°�V1" 14.G0V HUTCHINSON UTILITIES^ ^ 225 MICHIGAN ST SE HUTCHINSON, MN 55350 GROEBNER Bill To Hutchinson Util. Comm _ 225 MICHIGAN ST SE Gust # HUTCHINSON, MN 55350-1905 256 p To I HUTCHINSON UTILITIES 175 MICHIGAN ST SE HUTCHINSON, MN 55350-1935 Quote 02/18/22 03/20/22 Remit To GROEBNER 21801 INDUSTRIAL BLVD ROGERS, MN 55374-9575 Phone: (800)638-8322 JAN Ship Point, Via GROEBNER - MN Division BEST WAY SlsRepin/Qut 87 / 34m Ln Product # And Descrition Ordered By: Jason Sturges 1 R275TCDR-20LT METER R275TC 20 LT 1 /2' 2' TH DIR RD TEMP COM 5 xk "Serial # to be on meter carton" PLEASE INCLUDE BADGE NUMBERS w/PO 1 Lines Total ty Quantity Qty Unit I Price d Backordered UM Price I um 200 EA 125.16 EA Total Taxes Quote Total 117648-00 RFQ 9049 1 _ Net 25 Days Freight Terms Description Prepay/Add Amount 25032.00 25032.00 1971.27 27003.27 Print Time: 03102/2211:09* Customer Copy Page 1 of 1 HUTCHINSON UTILITIES COMMISSION B Board Action Form mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Req # 009087 Plant 1 Elevator Upgrades Presenter: Mike Gabrielson Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Per the state inspection of the Plant 1 elevator, it was found that there are several code requirements that are needed. The attached summary from TK Elevator Corporation (TKE) will bring the elevator up to current code. The annual safety inspections will be covered under the TKE service contract that is now in place. Two other companies were contacted to provide quotes, one company would not commit to the scope of work and there was no response back from a third company. $73,000.00 is Budgeted for 2022 BOARD ACTION REQUESTED: Approve Req# 009087 Fiscal Impact: $51,566.26 Included in current budget: Yes Budget Change: No PROJECT SECTION: Total Project Cost: Remaining Cost; HUTCHINSON UTILITIES ra,�itiak° tt ni'i ni'it II Ewa s�io ni TK ELEVATOR CORPORATION PO BOX 933004 ATLANTA, GA 31193-3004 Note PURCHASE REQUISITION HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 Description: Plant 1 Elevator Required Corrections Per State of MN Date Requisition No. 03/10/2022 009087 Required by: Requested by: mgabrielson Item No. part No. Description Qty Unit Due Date Unit Price Ext. Amount REPAIR WORK PER STATE OF MN CODE REQUIRE - 1 MFG. PART: 1.00 EA 04/19/2022 $51,566.260 $51,566.26 Total: 51,566.26 Date Printed: 03/28/2022 Requisitioned By: mgabrielson Page: 1/1 10/14/2021 HUTCHINSON UTILITIES COMMISSION 225 Michigan St Hutchinson, MN 55350 RE: Hydraulic Elevator ID# ELV-96239 Site: Hutchinson Utility Commission Plant 1 44 4th Ave NE Hutchinson, MN 55350 Dear Sir or Madam: I performed an inspection on the elevator -related device at the above site. The required corrections, which were identified during the inspection, are listed on the following page. Within 60 days from the date on this letter: You must complete the listed corrections and call the number below for a follow-up inspection. o GR ­- for items that cannot be completed within 60 days, submit a compliance plan to my attention at the address listed at the bottom of this letter or to the email address listed below. o Compliance plans MUST include the anticipated completion date for items not yet corrected. Failure to make these corrections or submit a compliance plan could result in your elevator -related device being placed out of service. If you have any questions regarding this letter, please contact me. Sincerely, Brian Harren I Elevator Code Rep Construction Codes and Licensing I Elevator Inspections (651) 247-3757 1 brian.j.harren@state.mn.us 443 Lafayette Road N., St. Paul, MN 55155 • (651) 284-5005 • www.dli.mn. oovv An Equal Opportunity Employer ELEVATOR INSPECTION REPORT The following items were identified as being non -compliant with the adopted rules, standards or statutes for regulated elevator related devices. CORRECTION ITEMS: ASME A17.1- 2.27.1.1; Means of two way communication shall be provided and shall function on both normal and battery power. Repair the following with regards to two way communications:provide the proper means. ASME A17.3 - 3.4.5(a); Car lights must be provided with a minimum of two lamps. ASME A17.3 - 3.11.1; Provide as needed the emergency alarm to function on both normal and battery back-up power. ASME A17.3; Cylinders shall have a Safety bulkhead or double wall cylinder. Provide the Require documentation of the safety bulkhead. MN 1307.0067 subpart 9; Elevator personnel box with keys. Provide the following:box and lunar key MN 1307.0090 Subpart 2; Conditions for continued use for existing elevators. Repair or Add the following in the pit illumination of 10Fc and GFCI as needed. 443 Lafayette Road N., St. Paul, MN 55155 • (651) 284-5005 • www.dli.mn. oovv An Equal Opportunity Employer ASME A17.1 - 8.6.1.4.1(a); Provide maintenance control program records. ASME A17.1 - 8.6.1.2.1; A maintenance control program is required. ASME A17.1 - 8.9.1; Code data plate; Install Code Data Plate. Applicable code year is: ASME A17.1 - 8.6.5.14; Category 1 hydraulic tests are due. ASME A17.1 8.6.11.5; Written procedures for passenger evacuation required. ASME A17.1 - 8.6.1.6.5; Class ABC fire extinguisher required in machine room or control space. Repair Work Order HUTCHINSON UTILITIES Purchaser: Hutchinson Utilities Address: 225 Michigan St SE Hutchinson, MN 55350-1905 Location: HUTCHINSON UTILITIES Address: Hwy 7 £r Main St Hutchinson, MN 55350 December 06, 2021 Purchaser authorizes TK Elevator Corporation (referred to as "TK Elevator' hereafter) to perform the following work on the equipment and at the location described above, in exchange for the sum of Fifty One Thousand Five Hundred Sixty Six Dollars and Twenty Six Cents ($51,566.26) inclusive of all applicable sales and use taxes pursuant to the terms and conditions contained in this Work Order (the "Work Order"). Summary: 1 / US65382 Hydraulic Cylinder Code Requirement 1 / US65382 Emergency Light and Alarm Bell Code Requirement 1 / US65382 ADA Phone Code Requirement 1 / US65382 Elevator Personnel Only Box Code Requirement For further information, please see a detailed Scope of Work on the pages that follow. Recommended by Service Technician: Brett Louden In the event you have any questions regarding the content of this Work Order please contact me at +1 612 3022014. We appreciate your consideration. Regards, Melvin Smith TK Elevator Corporation 40 -- 51st Way NE Ste 300 Minneapolis MN 55421 melvin.smith@tkelevator.com 1+1 612 3022014 Notice: No permits or inspections by others are included in this work, unless otherwise indicated herein. Delivery and shipping is included. All work is to be performed during regular working days and hours as defined in this Work Order unless otherwise indicated herein. 2021-2-1198638 1 ACIA-1XAMX84 1 December 06, 2021 Repair Work Order Scope of Work Hydraulic Cylinder Replacement TK Elevator proposes to furnish the necessary labor and materials to replace the existing cylinder with an ASME A17.1 Code compliant cylinder with a sealed cylinder and protection liner on the elevator in the above referenced building. SCOPE OF WORK: • Erect safety/sight barricades, lay protective floor covering around work areas. • Suspend and secure (two methods) the elevator in the uppermost portion of hoistway. • Hydraulic fluid shall be removed from the cylinder and stored in approved containers. • Remove existing cylinder from the ground and dispose of properly. • Remove hazardous debris from inside of present well casing and store in approved containers (See Special conditions). • Install protective PVC (polyvinyl chloride) casing. • Install new hydraulic cylinder with double bulkhead bottom made of steel pipe compliant with Elevator Safety Code ASME Code A17.1 - 2004 and the same I.D. and O.D. size as existing cylinder with new jack head. • Attach hydraulic plunger to the platen plate on underside of elevator and properly align. • Install new jack seal and gasket (new head provided with cylinder) • Provide new hydraulic fluid to the elevator hydraulic system and test for normal operation. • Readjust valve, if required, to achieve proper operation. • Perform Full Load Safety Test in the presence of state approved Elevator Inspector • Disassemble and remove materials, tools and supplies and provide general clean-up. • Return elevator to service. This work requires us to pull and file a permit with the State of Minnesota Elevator Inspections Department. Upon completion of the project, a representative of the state elevator inspection department may inspect the elevator. If additional work is required following the inspection, it will be agreed upon separately. Special Conditions: 1. The quoted price is based upon the existing jack hole is plumb and cased or jacketed to prevent hole collapse once the existing jack is removed. The jack hole is clear of rock, water, concrete, debris or any other underground condition which hinders us from freely pulling the existing jack or installing the new jack or which alters the method required to complete the project. If we encounter such conditions, we will notify you immediately and upon execution of a change order, it is agreed that all additional work will be performed on a time and material basis, based on standard billing rates, until the conditions which have caused the delay have been overcome. 2. For the purpose of providing this estimate, we assume no unusual conditions as outlined in Item 1 above. If necessitated by unusual conditions, a proposal for additional labor and materials shall be submitted to Purchaser for approval prior to performance of additional work. Thyssen Krupp shall not be responsible for delays due to such causes. 3. Purchaser will be notified immediately of any circumstances that will require more than the allotted time and materials provided in this proposal. Written authorization will be required for any labor or materials required beyond this original proposal amount. 4. All labor estimates included herein are based upon work being performed during regular working days and hours of the trade (M-F,8:00 a.m. to 4:30 p.m). Work performed at other times will be in addition to the price indicated herein. 1. This proposal includes the State Five Year Full Load Test. If the load test discloses any deficiencies in the operation of the equipment tested, an additional proposal will be submitted for your approval for work needed to put the specific equipment in proper condition and in compliance with the above mentioned specifications. Thyssen Krupp Elevator will exercise caution and care in performing this repair and tests, but will not be responsible for damage done to the building and/or equipment while performing this work. 2. Purchaser agrees to furnish suitable parking area with standard truck access. In addition to upgrading hydraulic cylinder we will also install following code items: We will provide and install an emergency communication device inside elevator cab. New unit will be the ADA handsfree type programmed to call our 24-hour monitoring service. The building is responsible for providing clean, live, dedicated phone line prior ro scheduling our work. Unit will be integrated with normal and battery back-up power. We will provide and install an emergency light and alarm bell assembly inside the elevator cab. Unit will be integrated with normal and battery back-up power. We will provide and install Elevator Personnel Only box and applicable keys in elevator equipment room. 2021-2-1198638 1 ACIA-1XAMX84 1 December 06, 2021 Repair Work Order • We will provide and install Code Data Plate on elevator control panel in equipment room. All material provided shall be manufactured and installed in accordance with the ASME A17.1 safety code for elevators and escalators. Payment Terms 50% of the price set forth in this Work Order will be due and payable as an initial progress payment within 10 days from TK Elevator's receipt of a fully executed copy of this Work Order. This initial progress payment will be applied to any applicable project management, permits, engineering, drawings and material procurement. Material will be ordered once this payment is received and the parties have both executed this Work Order. The remaining 50% of the price set forth in this Work Order and any fully executed change orders shall be due and payable at the time TK Elevator commences the work described in the Work Order. TK Elevator's receipt of this final payment is a condition precedent to TK Elevator's return of the equipment described in this Work Order to the full operation and use and Purchaser agrees to waive any and all claims to such operation and use until such time as that payment is made in full. Purchaser agrees that TK Elevator shall have no obligation to complete any steps necessary to provide Purchaser with full use and operation of the affected elevator(s) until such time as TK Elevator has been paid 100% both of the price reflected in this Work Order and for any other work performed by TK Elevator or its subcontractors in furtherance of this Work Order. Purchaser agrees to waive any and all claims to the turnover and/or use of that equipment until such time as those amounts are paid in full. TK Elevator reserves the right to assign payments owed to TK Elevator under this Work Order. Work order price: $51,566.26 Initial progress payment: (50%) $25,783.13 Total due upon completion: (50%) $25,783.13 2021-2-1198638 1 ACIA-1XAMX84 1 December 06, 2021 Repair Work Order Terms and Conditions TK Elevator does not assume any responsibility for any part of the vertical transportation equipment other than the specific components that are described in this Work Order and then only to the extent TK Elevator has performed the work described above. No work, service, examination or liability on the part of TK Elevator is intended, implied or included other than the work specifically described above. It is agreed that TK Elevator does not assume possession or control of any part of the vertical transportation equipment and that such remains Purchaser's exclusively as the owner, lessor, lessee, possessor, or manager thereof. Unless otherwise stated herein, TK Elevator's performance of this Work Order is expressly contingent upon Purchaser securing permission or priority as required by all applicable governmental agencies and paying for any and all applicable permits or other similar documents. It is agreed that TK Elevator's personnel shall be given a safe place in which to work. TK Elevator reserves the right to discontinue its work in the location above whenever, in its sole opinion, TK Elevator believes that any aspect of the location is in any way unsafe until such time as Purchaser has demonstrated, at its sole expense, that it has appropriately remedied the unsafe condition to TK Elevator's satisfaction. Unless otherwise agreed, it is understood that the work described above will be performed during regular working days and hours which are defined as Monday through Friday, 8:00 AM to 4:30 PM (except scheduled union holidays). If overtime is mutually agreed upon, an additional charge at TK Elevator's usual rates for such work shall be added to the price of this Work Order. In consideration of TK Elevator performing the work described above Purchaser, to the fullest extent permitted by law, expressly agrees to indemnify, defend, save harmless, discharge, release and forever acquit TK Elevator, its employees, officers, agents, affiliates, and subsidiaries from and against any and all claims, demands, suits, and proceedings made or brought against TK Elevator, its employees, officers, agents, affiliates and subsidiaries for loss, property damage (including damage to the equipment which is the subject matter of this Work Order), personal injury or death that are alleged to have been caused by Purchaser or any others in connection with the presence, use, misuse, maintenance, installation, removal, manufacture, design, operation or condition of the vertical transportation equipment that is the subject of this Work Order, or the associated areas surrounding such equipment. Purchaser's duty to indemnify does not apply to the extent that the loss, property damage (including damage to the equipment which is the subject matter of this Work Order), personal injury or death is determined to be caused by or resulting from the negligence of TK Elevator and/or its employees. Purchaser recognizes, however, that its obligation to defend TK Elevator and its employees, officers, agents, affiliates and subsidiaries under this clause is broader and distinct from its duty to indemnify and specifically includes payment of all attorney's fees, court costs, interest and any other expenses of litigation arising out of such claims or lawsuits. Purchaser expressly agrees to name TK Elevator along with its officers, agents, affiliates and subsidiaries as additional insureds in Purchaser's liability and any excess (umbrella) liability insurance policy(ies). Such insurance must insure TK Elevator, along with its officers, agents, affiliates and subsidiaries for those claims and/or losses referenced in the above paragraph, and for claims and/or or losses arising from the negligence or legal responsibility of TK Elevator and/or its officers, agents, affiliates and subsidiaries. Such insurance must specify that its coverage is primary and non-contributory. Purchaser hereby waives the right of subrogation. TK Elevator shall not be liable for any loss, damage or delay caused by acts of government, labor, troubles, strikes, lockouts, fire, explosions, theft, riot, civil commotion, war, malicious mischief, acts of God, or any cause beyond its control. TK Elevator Corporation shall automatically receive an extension of time commensurate with any delay regarding the work called for in this Work Order. Should loss of or damage to TK Elevator's material, tools or work occur at the location that is the subject of this Work Order, Purchaser shall compensate TK Elevator therefor, unless such loss or damage results solely from TK Elevator's own acts or omissions. If any drawings, illustrations or descriptive matter are furnished with this Work Order, they are approximate and are submitted only to show the general style and arrangement of equipment being offered. Work Order. Purchaser shall bear all cost(s) for any reinspection of TK Elevator's work due to items outside the scope of this Work Order or for any inspection arising from the work of other trades requiring the assistance of TK Elevator. Purchaser expressly agrees to waive any and all claims for consequential, special or indirect damages arising out of the performance of this Work Order and specifically releases TK Elevator from any and all such claims. A service charge of 1.5% per month, or the highest legal rate, whichever is less, shall apply to delinquent accounts. In the event of any default of any of the payment provisions herein, Purchaser agrees to pay, in addition to any defaulted amount, any attorney fees, court costs and all other expenses, fees and costs incurred by TK Elevator in connection with the collection of that defaulted amount. Purchaser agrees that this Work Order shall be construed and enforced in accordance with the laws of the state where the vertical transportation equipment that is the subject of this Work Order is located and consents to jurisdiction of the courts, both state and Federal, of that as to all matters and disputes arising out of this Work Order. Purchaser further agrees to waive trial by jury for all such matters and disputes. The rights of TK Elevator under this Work Order shall be cumulative and the failure on the part of the TK Elevator to exercise any rights given hereunder shall not operate to forfeit or waive any of said rights and any extension, indulgence or change by TK Elevator in the method, mode or manner of payment or any of its other rights shall not be construed as a waiver of any of its rights under this Work Order. In the event any portion of this Work Order is deemed invalid or unenforceable by a court of law, such finding shall not affect the validity or enforceability of any other portion of this Work Order. This Work Order shall be considered as having been drafted jointly by Purchaser and TK Elevator and shall not be construed or interpreted against either Purchaser or TK Elevator by reason of either Purchaser or TK Elevator's role in drafting same. In the event Purchaser's acceptance of the work called for in this Work Order is in the form of a purchase order or other kind of document, the provisions, terms and conditions of this Work Order shall exclusively govern the relationship between TK Elevator and Purchaser with respect to the work described herein. 2021-2-1198638 1 ACIA-1XAMX84 1 December 06, 2021 4 Repair Work Order Acceptance This Work Order is submitted for acceptance within 30 days from the date executed by TK Elevator. Purchaser's acceptance of this Work Order will constitute exclusively and entirely the agreement for the work herein described. All prior representations or agreements regarding this work, whether written or verbal, will be deemed to be merged herein, and no other changes in or additions to this Work Order will be recognized unless made in writing and properly executed by both parties. No agent or employee of TK Elevator shall have the authority to waive or modify any of the terms of this Work Order without the written approval of an authorized TK Elevator manager. This Work Order specifically contemplates work outside the scope of any other contract currently in effect between the parties; any such contract shall be unaffected by this Work Order. To indicate acceptance of this work order, please sign and return one (1) original of this agreement to the branch address shown below. Upon receipt of your written authorization and required materials and/or supplies, we shall implement the work called for in this Work Order. By: By: (Signature of Authorized Individual) (Signature of Branch Representative) Rick Horneck (Print or Type Name) Branch Manager (Print or Type Title) (Date of Acceptance) (Date of Execution) Please contact _______________________________________ to schedule work at the following phone number _________________ 2021-2-1198638 1 ACIA-1XAMX84 1 December 06, 2021 5 Hutchinson Utilities 225 Michigan St SE Hutchinson MN, 55350-1905 December 06, Immediate ACIA-1XAMX84 2021 Total Contract Price: Down Payment: $51,566.26 (50%) $25,783.13 For inquiries regarding your contract or services provided by TK Elevator, please contact your local account manager at +1 612 3022014. To make a payment by phone, please call 770-261-0022 with the reference information provided below. Current and former service customers can now pay online at: https://secure.biIltrust.com/thyssenkruppelevator/ig/one-time-payment Thank you for choosing TK Elevator. We appreciate your business. Please detach the below section and provide along with payment. ------------------------------------------------------------------- Customer Name: Hutchinson Utilities Remit To: Location Name: HUTCHINSON UTILITIES TK Elevator Customer Number: 48496 Ca Box 3796 Carol Stream, IL Quote Number: 2021-2-1198638 60132-3796 Reference ID: ACIA-1XAMX84 Remittance $25,783.13 Amount: 2021-2-1198638 1 ACIA-1XAMX84 1 December 06, 2021 Repair Completion Notice to be signed atjob completion Date: Building Name: HUTCHINSON UTILITIES Repair Job #: Street Address: Hwy 7 £r Main St City State, Zip: Hutchinson, MN 55350 Dear , Thank you for allowing us the opportunity to perform the repair job listed above. We have completed the work as outlined in job # and the unit is now up and running. You will receive a final bill for this work shortly. We hope your experience was exceptional and look forward to serving you in the future. If you have any questions about the repair work or your service agreement, please check one of the boxes under "Follow -Up Request" and the appropriate person will contact you soon. Customer Name: Name: Melvin Smith Print or Type Name Print or Type Name Customer Signature: Signature: Signature of Authorized Individual Signature of Authorized Individual Title: Title: Account Manager Print or Type Title Print or Type Title Date: Date: Date of acceptance Customer Email: Customer Email If you would like a manager or department representative to contact you, please check one of the following: ❑ Sales Department ❑ Service Department ❑ Branch Manager ❑ Repair Department Phone Number Comments: 2021-2-1198638 1 ACIA-1XAMX84 1 December 06, 2021 HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: ChargePoint DC Fast Charging Station Presenter: Dave Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments,: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: HUC will install a second Electric Vehicle DC Fast Charging station for Public use. Staff chose to go with ChargePoint for three main reasons. 1) State Contract Pricing 2) We currently have a ChargePoint DC Fast Charger in service since Nov. 2020. 3) Allows us to have one platform for monitoring residential and commercial EV charging. Recommend approving requisition #9088 for $51,019.00 to Carbon Day EV Charging state contract: State of MN contract 195941 E-108 The 2022 Budget is $60,000.00. BOARD ACTION REQUESTED: Approve Req 9088 Fiscal Impact: 51,019.00 Included in current budget: Yes Budget Change: No PROJECT SECTION: Total Project Cost: Remaining Cost: HUTCHINSON UTILITIES ra,�itiaa° oni'initIIIEwasrioI'II CARBON DAY AUTOMOTIVE 163 S WHEELING RD WHEELING, IL 60090 Note PURCHASE REQUISITION HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 Description: DC Fast Charger CPE250-Dual Cord 62.5KW Date Requisition No. 03/10/2022 009088 Required by: Requested by: dhunstad Item No. part No. Description Qty Unit Due Date Unit Price Ext. Amount CPE250-DUAL CORD DC 62.5KW COMBO - DCFC 62.5KW WITH DUAL CORD CHARGER COMBO AND CHADEMO CONNECTORS 1 5 YEAR DATA PLAN 1.00 EA $51,019.000 $51,019.00 2 YEARS ASSURE PLAN SITE COMMISSIONING SHIPPING MFG. PART: Total: 51,019.00 Date Printed: 03/10/2022 Requisitioned By: dhunstad Page: 1/1 -c h a rg e oi pIIIIIIIIIIIIIIIIIIIIIIII uuumouuuuuuuuum �Q� Ipl iomouummll mminpl �V� umnylll � pp�r mumoll ilnimni°I141Vr, �!N°umollQllln � nomolul luuuuuouul°°°I �� � � Y � uuuu����� �lniiillN�� '���Olniiill��� 1 uuuuuuuuuuuuuuuuu .nil hlloimmm� Illlmmum� �IluuomiooIluuouuoo uuuuuuuuuuuuu 1��Ulumm 11 IOuumm III" I lii Ilf aJ III l I lii Gi III Uii W rd iii li ii g IIhi Ilf.: iii ii iu III 'I'll", "I ChargePoint Express 250 Datasheet I'll, I [(c iil 11"'I The order codes below represent specific product configurations. Other product options are available. Please contact ChargePoint Sales for information and order codes. Cbud ar'iid Software ChargePoint Cloud Plan Please contact ChargePoint sales ............. 7 "M ................................................................................ ....................................................... ChargePoint Assure — Prepaid Assure Plan for one Power Module. EXPRESS-ASSUREn' Express 250 requires 2x EXPRESS-ASSUREn to cover the two Power Modules and the CPE250 station. ChargePoint Assure — Assure Plan for one Power Module and EXPRESS-ASSUREn-COMMIT' invoiced annually. Express 250 requires 2x EXPRESS-ASSUREn to cover the two Power Modules and the CPE250 station ....................................................................................................................................................................................................... . Station Activation and Configuration CPSUPPORT-ACTIVE All CPE250 stations require a cloud plan. ' Substitute desired years of service (1, 2, 3, 4, or 5 years) for n Grdeu Code ChargePoint, Inc. I Copyright@ 2019 2 of 5 ChargePoint Express 250 Datasheet III' ') I 2 1 ......... . . .. .. ') I ` X�' rcloss 50 S��' (110(,";J� f�k;at,Jx I S Stafiar'ii it Input Rating 400V AC, 3-phase, 96A, 50 Hz 480V AC, 3-phase, 80A, 60 Hz Wiring L1, L2, L3, Neutral & Earth Stafiar'ii 0i j t j t Max Output Power 62.5 kW Output Voltage, Charging 200-1,000V DC Max Output Current 156A Max Modules per Station 2 �ahred Stafior"ii Oi� it Paired Max Output Power 125 kW Paired Max Output Current CCS1: 174A CCS2: 200A CHAdeMO; US- 140A, EU: 125A �:��:�ower" III ob jIIe Max Output Power per Module 31.25 kW Max Output Current per Module 78 A Stafior"ii jr"iicfior"i4I hr'iiterfaces Max Connector Types per Up to two different connector types per station Station Supported Connector Types CHAdeMO, CCS 1 (SAE J 1772 TM Combo), CCS2 (I EC 61851-23) Cable Length with Swing Arm Full Horizontal Reach: 4.27m (14')* Driver Interaction Display Full -color 254 mm (10 in) LCD display for driver interaction Top Display Full -color 508 mm (20 in) LED display for notifications Authentication RFID: ISO 15693, ISO 14443, NEMA EVSE 1.2-2015 (UR) Tap to Charge (NFC on Apple & Android) Plug and Charge: IEC 15118-1 Remote: Mobile and in vehicle (if supported by vehicle) Horizontal reach to typical vehicle charging port: 3.76m (12'4") ChargePoint, Inc. I Copyright@ 2019 3 of 5 ChargePoint Express 250 Datasheet eati ir"es Local Area Network 2.4 GHz and 5 GHz WiFi (802.11 b/g/n) Wide Area Network 4G LTE (fall back to 3G GSM) Supported Communication OCPP Protocols Service and Maintenance Remote system monitoring, diagnostic, and proactive maintenance Ma II""ii age II 11 II e ""ii t jII es Dynamic Power Management Allows a fixed maximum power output per station or lets the system dynamically manage the power distribution per station Remote Energy Management Manage output power via the ChargePoint Admin Portal, API, and Open ADR 2.Ob VEN Safety &""iid 0I",)&rafioi""i4I :��Rath""Ilgs Vehicle Safety Communication CHAdeMO — JEVS G1 04 over CAN, CCS1 — SAE J1 772 over PLC and CCS2 — IEC 61851-23 Plug -out Detection Power terminated per JEVS G1 04 (CHAdeMO), SAE J2931 (CCS1) and ............... IEC 61851-23 (CCS2) ........... Station Enclosure Rating Type 3R, IP54 Station Impact Rating IK10 ............... Safety Compliance UL and cUL listed: complies with UL 2202, UL 2231-1, UL 2231-2, CSA 107.1 CE marking: complies with IEC 62196, IEC 61851 Station Surge Protection I Tested to IEC 6100-4-5, Level 5 (6 kV @ 3,000A). In geographic areas subject to frequent thunder storms, supplemental surge protection at the ............... service panel is recommended. EMC Compliance U.S.: FCC part 15 Class A; EU: EN5501 1, EN55022 and IEC61000-4 Power Module Conversion > 95% Efficiency Power Factor 0.99 at full load Harmonics ............................ iTHD < 5% (Complies with IEEE 519 Requirements) -,""I'll" ............... ........... Power Module Cooling Liquid Cooling Technology Operational Altitude Operating Temperature -30°C to 50°C (-22°F to 122°F) Storage Temperature -40°C to 50°C (-40°F to 122°F) Operating Humidity Up to 95% @ 50°C (122°F) non -condensing ChargePoint, Inc. I Copyright@ 2019 4 of 5 ChargePoint Express 250 Datasheet (..,,,a e I�""" e Ir" II c S,,,)e d ChargePoint, Inc. reserves the right to alter product offerings and specifications at any time without notice, and is not responsible for typographical or graphical errors that may appear in this document coIf' tafl>t (Js �,,,,,�„, Visit chargepoint.com Call +1.408.705.1992 Email sales@chargepoint.com ChargePoint, Inc. 240 East Hacienda Avenue Copyright© 2019 ChargePoint, Inc. All rights reserved. CHARGEPOINT is a U.S. Campbell, CA 95008-6617 USA registered trademark/service mark, and an EU registered logo mark of +1.408.841.4500 or ChargePoint, Inc. All other products or services mentioned are the trademarks, +1.877.370.3802 US and Canada toll -free service marks, registered trademarks or registered service marks of their respective owners. June 2019. chargepoint.com ChargePoint, Inc. I Copyright© 2019 5 of 5 QUOTE January 27, 2022 Mr. Dave Hunstad Hutchinson Utility NA020112 225 Michigan St. SE Hutchinson, MN 55350 320-234-0508 dhunstad@ci.hutchinson.nm.us CPE250-Dual Cord DC 62 51KW Charger with Combo and CHAdeMO connectors 2 Years Parts and Labor Warranty REFERENCE: State of MN contract 195941 E-108 CARBON lioow 'lll°HIJIIPriIIIIN m000000000000000000000000000000000000000000i Model Number Description QTY Price Per Station Total Price Charge Point CPE250-625-CCs1-200A-CHD 62.5 KW 1XCCS1-200A and 1XCHAdeM0 Cable 1 (I-IsL $40,800) $36,720 $36,720 5 Year Enterprise Cloud Plan Reference Page 2 of Quote for Explanation 1 $4,799 $4,799 CPE250-Commissioning Reference Page 2 of Quote for Explanation 1 $900 $900 2 Years Assure Reference Page 2 of Quote for Explanation 1 $8,000 $8,000 CPE250-CMT-IMPERIAL Concrete Mounting Template 1 $0 $0 CPSUPPORT-ACTIVE Initial Activation and Configuration Reference Page 2 of Quote for Explanation 1 Included $0 $0 Shipping Shipping 1 I 1 $600 $600 Amount IDue Total cost before installation 1 $51,019 Signature Ship to: Date CARBOII . niry 1 Initial Station Activation and Configuration Service includes activation of cloud services and configuration of radio groups, connections, access control, visibility control, pricing, reports and alerts. INCLUDED Enterprise Cloud Plan available in prepay options: Annual fee includes: Secure network connection, station inventory, 24-7 Driver support, Host Support, Session Data and Analytics Fleet Vehicle Management and Integration, Fleet access control, Valet dashboard. Time of Use -varying Power Management (Circuit, panel, site sharing), scheduled charging, Driver access control, Pricing and automatic funds collection, Waitlist, Videos, Meter data and advanced analytics, Building energy management system API, Real time DC dynamic power management Occupancy detection, Predictive maintenance and diagnostics. 1 year $1,199 2 years $2,279 3 years $3,239 4 years $4,079 5 years $4,799 CPE250-Commissioning. $900 On -Site Validation of cellular coverage, electrical capacity, transformers, panels, breakers, wiring and station installation meets all ChargePoint published requirements. On station activation and assist ChargePoint to complete final activation. Optional Programs: Assure Warranty optional extended Parts and Labor Warranty - Commission required. 1 year $4,200 2 years $8,000 3 years $11,100 4 years $13,600 5 years $15,500 ** Other Standard Terms and Conditions Invoice Terms: 50% due upon placement of order and balance due 30 days after shipment of product. Issue payment to CD LLC ChargePoint 1 year parts warranty applies for all products. Warranty will be between purchaser and ChargePoint. Prices are confidential and expire: February 26, 2022 l Sioaez ;518 50;5U508 oolos@carloonday,com "Ih 3 S. Wheeling 1113d. Wheeling 1111 60090 VisilC, i":;° i. r Wel „!, itr„e: https.ldcarbondayevcharging,coml HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Approval of Natural Gas Facilities Maintenance Agreement - City of Fairfax Presenter: John Webster 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 continue performing the maintenance, as required by DOT, of the natural gas transmission/distribution metering, regulating, odorizing, water bath heater and line control facilities serving Heartland Corn Products and the Cities of Fairfax and Gibbon effective April 1, 2022. 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 03/08/2022 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 CAS FACILITIES MAINTENANCE AGREEMENT THIS NATURAL GAS FACILITIES MAINTENANCE AGREEMENT ("Agreement") is made and entered into on. this 30th day of March, 2022, 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'T es." I ESSETH: 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, 2022. "Emergency" means any suspected or actual abnormal condition that has already caused, Op—tims and Maiwwm w Agri mt 1 Na1-1 Gas FniGtles Cityof Faidaz John Wdbat 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 I 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. ®paations and Meiat®¢nee Agr=wt Na=4 Gas Facilities Cityoff Fairfax John Wel iw "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, firm, corporation, partnership, joint venture, association, trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. "Routine World" includes day-to-day maintenance, testing and repair and more particularly defined in Exhibit C of this Agreement. "Non -Routine World" 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. "Year" or "year" means a period of 12 consecutive months commencing with April 1 and ending on the following March 31. Section 1.2 References, Gender, Number. Unless the context requires otherwise, all references in this Agreement to an "Article," "Section" or "Subsection" shall 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 herein shall include the masculine, feminine and neuter gender, and the singular and the plural. ARTICLE II: RESPONSIBILITIES OF OPERATOR Section 2.1 General Responsibilities. (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 Op—tioos and Maiutmmw Ag, e 1 3 Nat-- Gas F.dfifl s Cityof Fairfax Joh. wd to 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. Opaatioas and Maiotwaacc Agrwl Natwal Gas Facilities City of Favfn John Websta 4 Owner will notify Operator after Owner learns of any Emergency condition affecting the 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 perfortnance of repair or maintenance that affects the operations of the Facilities shall be scheduled to be performed 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 ed under the other contract is defective or unsuitable and such condition affects the timing, scheduling or quality of the Operations perfonned 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 determined by Operator. All employees and other personnel provided by Operator pursuant to this ogre . ent shall be the employees ployees or independent contractors of Operator and in no event shall such employees ployees or other personnel be deemed employees or contractors of Owner. On or before the Commencement Date, Operator shall Operations and Mainly m Ag—eat Natttrxl Gas Facilities City of Fairfax John Wd51a 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". Operations and Mainta mAgremmt Natural On Facilities Cityof Fairfax Jul. Welsta The Parties shall review the Fees for Routine Work on an annual basis, starting on February 1, 2023 and on each February I thereafter, and reserve the right to modify the fees upon mutual MMEM Section 2.6 QqmAensatio!1 for Non Routine Work. j- 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 "l)". . Any Non Routine Work that is in excess of $500.00 per event and that is not the result or 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 Payment. On or before the fifteenth (15th) 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 the non-exclusive right to access and use the Facilities, for purposes of and sub�iect to the terms of this Agreement. ARTICLE III: TRANSFERS OFRESPONSIBIII TIES OF OPERATOR Section 3.1 Transfer of (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 Oporai— and I&it on . . Agmnent Natural G. Facilities City of Fairfax Jahn woller 0 ......mm 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 Operator's Insurance. Operator shall procure and maintain in full force and effect at the Operator's cost, the following insurance coverage: Gpaalims and Mmmmm Agrmt Natural Gas Fadlitim City afFairfax Jahn 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) Commercial general liability insurance with completed operations coverage for claims alleging bodily injury including death and damage to property of others, with a combined single limit of $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 per occurrence and in the aggregate. Section Other Insurance Red ments. w_wwwwµµµµ 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 additional insureds hereunder be given thirty (30) days' advance notice of cancellation or material change. Within thirty (30) days of the date of this Agreement, each Party shall famish to the other Party certificates as evidence showing that the insurance policies to be carried in accordance with this provision have been obtained. Section, 4.4 Maximum mmLiabilit". Operator's maximum liability is limited to a combined single limit of $1,500,000 by Minnesota Statute. Section 5.1 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 famish security, Operations and Mainteaam Agre eat Natural Gas Facihtis City of Fairfax John Webster 0 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 5.2 Force Mq ure 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., , Assigninent by Owner. Owner may not assign all or any part of its rights or obligations under this Agreement without prior written consent of Operator. Opaalims and Maitit s =Agr-t 1O Nalmal Gas Facilities City of Fairfax John wd is Section 6.2 Assinent by Operator. 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 Termination. Upon failure by either Party in the performance of any provision, condition or requirement 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 Termination. Termination 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 Gpaalio and Maim... Ap-1 Nal—I G. Facilities City of Fairfax Joho wd to 11 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. w. Section w...8..,.2...................Entire A eement. 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 Opaaioas and Mai®t®anm AVce wt 12 NatuW Gas Facilities City of Fairfax John Welsta .... .. ......... . ........ . . . .......... . 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 5539655332 Attention: Nicholas Johnson City Administrator E-Mail: Admin@fairfax-mn.gov Telephone No.: 507-426-7255 Hutchinson Utilities Commission 225 Michigan St. SE Hutchinson, Minnesota 55350 Attention: John Webster E-Mail: jEgb,,t, ,(�i),(,,i..]hi.utc�hin.son.riin.,,Rjs ­­­­....... - — — -- -- - - ­- -- - -- ---------------- - Telephone No.: 320-234-0507 Fax No.: 320-587-4721 Section 8.4 Successors and Assipj& 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 of the Parties hereto and their respective successors and assigns. Section 8.5 Headins, 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 terrn or provision of this Agreement on the part of such other Opp —lion and Maim— Agr�mf Nm—1 Gas hdfifi. 13 City .Fairfax J.b. W.I. ............ ........ Party 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.w9wwwwwww 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 Ind liendent Contractor; No Partnership. 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. Opaati.ns and Maintenance Ag—ent 14 Nature] Gas Facilities City of Fairfax John Wetsta Section 8.11 Data Practices Act. The Parties acknowledge that Operator is subject to Minnesota Government Data Practices 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 from unlawful 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 terms of this section shall survive the termination of this Agreement. Section 8.12 News Releases. News releases concerning the Maintenance 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 of 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 of the announcement or statement. Section 8.13 Authority to Enter A, Treement. Each party to this Agreement represents and warrants that it has full and complete authority to enter into and perform 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. Opaati— d M.Wl—. Ag—I Nat—1 Oas F-IiiIi. 15 City of Fairfax Inhn Wdrsw ..................m,.,.,..m.,.,.......,.,.....,....,......................................... n..,....,,...... ...._.....,..,.................. ,,,,........._..,— . . . . . . . ............. . ..... . . ....... . . ............ . . . . . . . . .. ......... .................. Section 8.14 Alternative Disl2pjq 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 Coljg-tqmgs- 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 Opastions and Maintenam Ag—est 16 Natmal Gas Faeffitics City of Fairfax John Webta . . . ............ ......... . ....... .... . . . .............. . . . . . . ......................... . . . .......... - profits), resulting from any utility equipment, malfunction or failure occurring during the to of this Agreement, except such claims or liability directly resulting from the negligent acts or omissions of Operator. Section 9.2 [ndernnification by 0- erator. Subject to Section 2.1 (c), Operator shall defend, protect, indemnify, and hold harmless Owner, and its members, directors, officers, employees and agents frorn 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 Operator, its agents, employees, representatives, or contractors, or from the failure of Operator, its agents, employees, representatives, or contractors to perform its obligations under this Agreement and in compliance with all applicable Laws. This indemnity in 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, famished to Operator or its assignees or subcontractors, in connection with any work performed by Operator hereunder. Section 9.3 No Co. sec ential Damamps 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 gr Amtrent Natural Gas Facilities17 City offairfa. John Webstu 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: OMatio and Ma.I..—Ag—wt 1 Nat-- Gas Facifid. City of Fairfax John A'6gs CITY OF FAIRFAX By. Name:,. wil�tD�G ! e d/llY� Title: Date: Witness: Date: Witness: Date: This Exhibit "A" is attached to and made part of that certain Maintenance Agreement — Natural Gas Facilities (the "Agreernenf') by and between City of Fairfax ("Owner") and Hutchinson Utilities Commission ("Clrerator"). OPERA,rOR'S PAYMEN'r iNs'nuicrioNs: For the purpose of this Agreement, Owner shall make all payments provided in the Agreement to Operator via Check to the fbilowing: 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 party natural gas operator shall operate their respective pipeline facilities connected to the Facilities. EXHIBIT "C" This ]Exhibit "C" is attached to and made part of that certain Maintenance Agreement — Natural Gas Facilities (the "Areemernt") by and between City of ]Fairfax ("Owner") and Hutchinson 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 e of the work berg er on- ned multiplied by the number ail"hours required by the employee(s) to complete Maintenance work.. for Owner. Hours required to complete Maintenance includes travel time from Operators' work center tojob site including return trip to Operator's work canter. Operator morn overtime rate 60/houur Operator vehicle hourly rate .... 47/houur All materials shall be charged at a cost Maus 10% to cover all inventory and purchasing fees. COMPLETELIST OF ROUTINE ITEMS: A. Maintenance, Repair and Security I . Perform routine station meter testing and calibration Maintain, test and repair all station and high pressure block valves 3. Maintain, test and repair regulators 4. Maintain and repair station lime heater 5. Maintain and repair, station odorizer 6. Maintain the cleanliness and environmental soundness of the Facilities 7. Make mechanical repair 8. Perfibrin preventative maintenance 9. Respond to emergency calls during HUC standard work hours (6e30 AM to 5,00 :1PM, Monday through Friday), except to the extent response to an emergency requires additional personnel l that are not on duty during said emergency and/or additional outside contractors B. Legal and Regulatory Compliance I . Maintain.DOT System records . Maintain Training I CET 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" 5 This Exhibit "D" 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"). NON -ROUTINE WORK EXAMPLE, OF NON ROUTINE ITEMS: Expense ** After -hours, holidays, weekends emergency response Cost -1.- 80% 2. Additional personnel as my be required during emergencies Cost 1 80% Additional contractors as may berequired during emergencies Cost + 50% 4. Any and all other items relevant to the .metering and regulation facility operation and maintenance that are neither listed above nor included in 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, All labor 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, HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Request for sale of 51VIVA transformer for Generator #3 Presenter: Dave Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments,: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Staff will be decommissioning Generator #3 at Plant 1, the existing 51VIVA step up transformer that was used for this generator will no longer be needed. HUC purchased the transformer in 2019 for $89,830.00 plus tax. Since the transformer is only 2 years old and still has warranty left, Staff will look to recover the initial purchase costs and sell it for $96,000.00. Attached: The original quote from T&R Electric. The original PO We will advertise the transformer to MMUA, APPA, and MREA members. BOARD ACTION REQUESTED: Sale of 51VIVA transformer Fiscal Impact: Included in current budget: Yes Budget Change: No PROJECT SECTION: Total Project Cost: Remaining Cost: MO. v HUTCHINSON UTILITIES PURCHASE ORDER HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 SUPPLIER VENDOR: 001420 T & R ELECTRIC SUPPLY CO INC 308 SW 3RD ST PO BOX 180 COLMAN, SD 57107 SHIP TO: Hutchinson Utilities Commission 175 Michigan Street SE Hutchinson, MN 55350 email: huc-ap@ci.hutchinson.mn.us DATE P.O. No. 06/27/2019 I 007984 Supllier Phone: (800) 843-7994 Fax: (605) 534-3861 Email: CHRIS@TRELECTRIC.COM Terms - N30 Ship Via - BILL TO: Hutchinson Utilities Commission 225 Michigan Street SE Hutchinson, MN 55350 email: huc-ap@ci.hutchinson.mn.us Item No. No. Description Qty Unit Due Date Unit Price Lead Time Ext. Amount 1 5 MVA STEP UP TRANSFORMER - 1.00 EA 89,830.00 00 89,830.00 MFG. PART: W.O. NUM: NONE RCVD QTY & DATE: Acct: 1-00-107-362-0000-21903 89,830.00 Subtotal $89,830.00 Sales Tax (6.875%) $6,175.81 Freight $0.00 Total $96,005.81 Date Printed: 08/21/2020 Requisitioned By: dhunstad Page: 1/1 Tine Transformer Peoplea MR191111 When, Every Minute Counts II IIa;wNtwan 0 0 iu 0 a rliueu R. SD 57017 IPhoup ;~OOO�7994 nluotsi(q'nlla1r�nw r d,fu^'^a.:Cpa w 1"ee5 34111Sht Date: May 20, 2019 Contact: Dave Hunstad Company: Hutchinson Utilities Commission ITEM 1: Product Type: Rem anufactured/Rewind Job Type: Sale Transformer Type: Power Class Substation Manufacturer: T&R SPECIFICATIONS: KVA: 5000/5600 PHASE: 3 Cooling Class: ONAN Temperature Rise: 55/65 High Voltage: 13800Y/7970 Low Voltage: 4160Y/2400 HV BIL Rating: 110 kV BIL LV BIL Rating: 75 kV BIL Taps: 2 - 2.5 % taps above and below Impedance: Standard Insulating Fluid: Mineral Oil Hertz: 60 Winding Material: New Copper HV & LV Winding Design Rectangular Layer Tank Enclosure: Welded Cover w/ inspection cover Weld on cooling radiators Ground Pads Sealed Tank Design Bushinas: High Voltage: New WARCO 110kV BIL Bushings Side Mounted (ATC/Flange) Low Voltage: New WARCO 75kV BIL Bushings Side Mounted (ATC/Flange) 'HO/XO Bushing Separate (Not Common) Protection: CT's & Arresters not included in this quote - can be provided as an adder upon request. Accessories: New Qualitrol Liquid Temperature gauge New Qualitrol Liquid level gauge New Qualitrol Pressure/vacuum gauge with bleeder New Cover mounted pressure relief device (PRD) New Drain Valve with sampler 'Please notify T&R of any additional accessories requested. Switchina: New 5-Position no-load tapchanger Paint Color: ANSI 70 Quantity: 1 PRICE: $89,830 Each Warranty: Three Years Shipment: 16-18.5 Weeks (ARo) FOB: Included Terms: Net 30 Adders: None Exceptions: None Additional Notes: 1 This quote is valid for 30 days. Please see attached for warranty information; T&R's terms and conditions will apply. 2 This unit is subject to prior sale. 3 Freight terms may vary on each particular order depending upon size and shipping destination. Shipping is included in this quote. 4 T&R does not provide crane service, field assembly, or field testing and these items are not included in this quote. 5 Payment term of Net 30 days is subject to credit approval at time of order. 6 If approval drawings are required please add 4 Weeks to our quoted lead time. 7 This transformer quoted is a remanufactured unit and will be built to the speciafications included in this quote and our build document. If you have any addidtional questions or need any additional information please call me at 800-843-7994. Sincerely, Gary Bowen Sales Repersentative