01-27-1999 HUCMREGULAR MEETING
JANUARY 27, 1999
Present at the meeting were: President Michael Carls, Vice President Roger
Gilmer, Secretary Paul Ackland, Commissioner David Wetterling, Attorney Marc
Sebora, and General Manager Clarence Kadrmas.
President Michael Carls called the meeting to order at 3:13 p.m.
Secretary Ackland made a motion to accept the Minutes of December 30, 1998,
as written. Commissioner Wetterling seconded the motion which passed
unanimously.
After reviewing the bills, Secretary Ackland made a motion to ratify their payment
in the amount of $1,756,177.47 (detailed listing is in payable book). Seconded
by Commissioner Wetterling, the motion carried unanimously.
Commissioner Wetterling made a motion to accept the Financial Statement and
the Budget Year -to -Date information. Seconded by Secretary Ackland the
motion carried unanimously.
Secretary Ackland made a motion to accept the state bid for a 1999 truck #16.
Seconded by Commissioner Wetterling the motion carried unanimously.
Commissioner Wetterling made a motion to reject all bids for replacement of unit
#9. Seconded by Secretary Ackland, the motion carried unanimously.
After reviewing a letter, dated January 27, 1999, from Doug Gronli, Claims
Manager, League of Minnesota Cities, Vice President Gilmer made a motion to
accept their proposal for replacement of Unit #9 with equal or greater capacity
with the follow stipulations:
1. We obtain a letter from Hartford Insurance confirming their intention to insure
the unit.
2. The League of Minnesota Cities will assure us that the project be
accomplished in a workman like manner, to our satisfaction.
3. That the League of Minnesota Cities can assure Hutchinson Utilities
Commission that Natole Turbine Enterprises was capable of providing and
stand behind their twelve (12) month warranty as proposed..
The motion was seconded by Commissioner Wetterling, and carried
unanimously.
Commissioner Wetterling made a motion to call for bids for Truck #1, Conductor
500 MCM 15 kv, Conductor 1/0 15 kv, and the 1999 Underground Conversion
Project. Secretary Ackland seconded the motion which passed unanimously.
The commission reviewed quotes for 25 and 37 kva transformers. Vice
President Gilmer made a motion to accept the quote from RESCO for a quantity
of 22, 25 kva transformers, and a quantity of 12 transformers with a capacity of
37 kva. Seconded by Secretary Ackland, the motion carried.
Vice President Gilmer made a motion seconded by Secretary Ackland to ratify
the quote for addition work needed on #1 steam turbine. The motion carried
unanimously.
Power Production Superintendent, Don Merkins, and General Manager Kadrmas
presented drawings to the commission with a theory as to how oil got into the
Crow River last September. A series of events: uncharted drainage pipes, tile
crushed (by a local contractor), abandoned wells, and substantial rainfall, may
have been the cause. We were able to rule out a possible spill made by an
employee.
Manager Kadrmas reported that the LM6000 repair has cost $105,000 and at
time of completion may cost up to $125,000. The unbudgeted amount of
$125,000 will need to come from the catastrophic fund.
Manager Kadrmas expressed his concerns as to the need to revisit the
Emergency Plan for Hutchinson. Vice President Gilmer requested that Attorney
Sebora contact all appropriate entities to coordinate a meeting for that purpose
and report back to the commission. Attorney Sebora will contact the Hutchinson
Police Department to inquire on a request made to shut down Minnesota Mining
and Manufacturing.
Labor /Management meetings will be held every other month and union mediation
is scheduled for 10:00 a.m., February 12, 1999.
There being no further business of the commission, Vice President Gilmer made
a motion to adjourn, seconded by Commissioner Wetterling, the motion carried.
ATTEST
Michael Carls, President
Paul Ackland, Secretary
E;/
REGULAR MEETING
JANUARY 27, 1999
Present at the meeting were: President Michael Carls, Vice President Roger Gilmer,
Secretary Paul Ackland, Commissioner David Wetterling, Attorney Marc Sebora, and
General Manager Clarence Kadrmas.
President Michael Carls called the meeting to order at 3:13 p.m.
Secretary Ackland made a motion to accept the Minutes of December 30, 1998, as
written. Commissioner Wetterling seconded the motion which passed unanimously.
After reviewing the bills, Secretary Ackland made a motion to ratify their payment in the
amount of $1,756,177.47 (detailed listing is in payable book). Seconded by
Commissioner Wetterling, the motion carried unanimously.
Commissioner Wetterling made a motion to accept the Financial Statement and the
Budget Year -to -Date information. Seconded by Secretary Ackland the motion carried
unanimously.
Secretary Ackland made a motion to accept the state bid for a 1999 truck #16.
Seconded by Commissioner Wetterling the motion carried unanimously.
Commissioner Wetterling made a motion to reject all bids for replacement of unit #9.
Seconded by Secretary Ackland, the motion carried unanimously.
After reviewing a letter, dated January 27, 1999, from Doug Gronli, Claims Manager,
League of Minnesota Cities, Vice President Gilmer made a motion to accept their
proposal for replacement of Unit #9 with equal or greater capacity with the follow
stipulations:
1. We obtain a letter from Hartford Insurance confirming their intention to insure the
unit.
2. The League of Minnesota Cities will assure us that the project be accomplished in a
workman like manner, to our satisfaction.
3. That the League of Minnesota Cities can assure Hutchinson Utilities Commission
that Natole Turbine Enterprises was capable of providing and stand behind their
twelve (12) month warranty as proposed..
The motion was seconded by Commissioner Wetterling, and carried unanimously.
Commissioner Wetterling made a motion to call for bids for Truck #1, Conductor 500
MCM 15 kv, Conductor 1/0 15 kv, and the 1999 Underground Conversion Project.
Secretary Ackland seconded the motion which passed unanimously.
6 v(
The commission reviewed quotes for 25 and 37 kva transformers. Vice President
Gilmer made a motion to accept the quote from RESCO for a quantity of 22, 25 kva
transformers, and a quantity of 12 transformers with a capacity of 37 kva. Seconded by
Secretary Ackland, the motion carried.
Vice President Gilmer made a motion seconded by Secretary Ackland to ratify the quote
for addition work needed on #1 steam turbine. The motion carried unanimously.
Power Production Superintendent, Don Merkins, and General Manager Kadrmas
presented drawings to the commission with a theory as to how oil got into the Crow
River last September. A series of events: uncharted drainage pipes, tile crushed (by a
local contractor), abandoned wells, and substantial rainfall, may have been the cause.
We were able to rule out a possible spill made by an employee.
Manager Kadrmas reported that the LM6000 repair has cost $105,000 and at time of
completion may cost up to $125,000. The unbudgeted amount of $125,000 will need to
come from the catastrophic fund.
Manager Kadrmas expressed his concerns as to the need to revisit the Emergency Plan
for Hutchinson. Vice President Gilmer requested that Attorney Sebora contact all
appropriate entities to coordinate a meeting for that purpose and report back to the
commission. Attorney Sebora will contact the Hutchinson Police Department to inquire
on a request made to shut down Minnesota Mining and Manufacturing.
Labor /Management meetings will be held every other month and union mediation is
scheduled for 10:00 a.m., February 12, 1999.
There being no further business of the commission, Vice President Gilmer made a
motion to adjourn, seconded by Commissioner Wetterling, the motion carried.
ATTEST 01;agt1 O
Michael Carls, President
4'-� i
Paul Ackland, Secretary
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ADVERTISEMENT FOR BIDS
FOR
"1999" UNDERGROUND CONVERSION PROJECT
HUTCHINSON UTILITIES COMMISSION
HUTCHINSON, MINNESOTA
Notice is hereby given that the Hutchinson Utilities Commission of the City of
Hutchinson, Hutchinson, Minnesota, hereinafter referred to as the Owner, will receive
sealed Bids at the Hutchinson Utilities office until 10:30 a.m. on the 18th day of February,
1999, and will publicly open and read aloud such Bids on the following work:
"1999 Underground Conversion Project"
Proposals shall be properly endorsed and delivered in an envelope marked,
"1999 Underground Conversion Project" and shall be addressed to: Hutchinson Utilities
Commission of the City of Hutchinson, 225 Michigan Street, Hutchinson, Minnesota 55350.
All proposals shall be submitted in duplicate on the Bidder's own letterhead in
facsimile of the Proposal Form enclosed in the Specifications, or by utilizing the Proposal
Form enclosed with the Specifications by typing the official name of the Bidder at the top
of the form.
Each proposal shall be accompanied by a Bid Bond, made payable to the
Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota, in the
amount of five per cent (5 %) of the Bid, as a guarantee that the Bidder will enter into the
proposed Contract after their Bid has been accepted.
The successful Bidder shall furnish a Performance Bond in an amount equal to one
hundred per cent (100 %) of the Contract price to the Owner prior to the approval of the
Contract.
No Bidder may withdraw his Bid or Proposal for a Period of thirty (30) days after date
of opening of Bids.
At the aforementioned time and place, or at such later time and Place as the Owner
then may fix, the Owner will act upon Proposals received and with its sole discretion may
award Contract(s) for the furnishing of said work.
Specifications and Plans are available at the Office of the Hutchinson Utilities, 225
Michigan Street, Hutchinson, Minnesota 55350.
The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson,
Minnesota reserves the right to reject any and all bids.
gy
Mike Carls, President
Date
ATTESTED
By P---P
Paul Ackland, Secretary
Date JA-w
t
ADVERTISEMENT FOR BIDS
FOR
INSULATED AERIAL/CHASSIS; TRUCK #1
HUTCHINSON UTILITIES COMMISSION
HUTCHINSON, MINNESOTA
Notice is hereby given that the Hutchinson Utilities Commission of the City of
Hutchinson, Hutchinson, Minnesota, hereinafter referred to as the Owner, will receive
sealed Bids at the Hutchinson Utilities office until 10:30 a.m. on the 23rd day of February,
1999, and will publicly open and read aloud such Bids on the following equipment:
"Insulated Aerial /Chassis; Truck #1"
Proposals shall be properly endorsed and delivered in an envelope marked,
"Insulated Aerial /Chassis; Truck #1" and shall be addressed to: Hutchinson Utilities
Commission of the City of Hutchinson, 225 Michigan Street, Hutchinson, Minnesota 55350.
All proposals shall be submitted in duplicate on the Bidder's own letterhead in
facsimile of the Proposal Form enclosed in the Specifications, or by utilizing the Proposal
Form enclosed with the Specifications by typing the official name of the Bidder at the top
of the form.
Each proposal shall be accompanied by a Bid Bond, made payable to the
Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota, in the
amount of five per cent (5 %) of the Bid, as a guarantee that the Bidder will enter into the
proposed Contract after their Bid has been accepted.
No Bidder may withdraw his Bid or Proposal for a Period of thirty (30) days after date
of opening of Bids.
At the aforementioned time and place, or at such later time and Place as the Owner
then may fix, the Owner will act upon Proposals received and with its sole discretion may
award Contract(s) for the furnishing of said equipment.
The work shall be started within ten (10) days after award of Contract(s).
Specifications and Plans are available at the Office of the Hutchinson Utilities, 225
Michigan Street, Hutchinson, Minnesota 55350.
The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson,
Minnesota reserves the right to reject any and all bids.
By LIAL- 11 Mike Carls, President
Date 1
ATTESTED
By ., t:2
Z7
Paul Ackland, Secretary
Date / "a 1' 27
ADVERTISEMENT FOR BIDS
FOR
500 MCM 15 KV CABLE FEEDERS #16 / #22
HUTCHINSON UTILITIES COMMISSION
HUTCHINSON, MINNESOTA
Notice is hereby given that the Hutchinson Utilities Commission of the City of
Hutchinson, Hutchinson, Minnesota, hereinafter referred to as the Owner, will receive
sealed Bids at the Hutchinson Utilities office until 10:30 a.m. on the 17th day of February,
1999, and will publicly open and read aloud such Bids on the following material.
"500 mcm 15 kv Cable Feeders #16 / #22"
Proposals shall be properly endorsed and delivered in an envelope marked,
"500 mcm 15 kv Cable Feeders #16 / #22" and shall be addressed to: Hutchinson Utilities
Commission of the City of Hutchinson, 225 Michigan Street, Hutchinson, Minnesota 55350.
All proposals shall be submitted in duplicate on the Bidder's own letterhead in
facsimile of the Proposal Form enclosed in the Specifications, or by utilizing the Proposal
Form enclosed with the Specifications by typing the official name of the Bidder at the top
of the form.
Each proposal shall be accompanied by a Bid Bond, made payable to the
Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota, in the
amount of five per cent (5 %) of the Bid, as a guarantee that the Bidder will enter into the
proposed Contract after their Bid has been accepted.
No Bidder may withdraw his Bid or Proposal for a Period of thirty (30) days after date
of opening of Bids.
At the aforementioned time and place, or at such later time and Place as the Owner
then may fix, the Owner will act upon Proposals received and with its sole discretion may
award Contract(s) for the furnishing of said material.
Specifications and Plans are available at the Office of the Hutchinson Utilities, 225
Michigan Street, Hutchinson, Minnesota 55350.
The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson,
Minnesota reserves the right to reject any and all bids.
By nj:�L 0 C�L'�
Mike Carls, President
Date ( -->--7 c� 1
ATTESTED
B Y 4—j
Paul Ackland, Secretary
Date 1-12 I ?I
ADVERTISEMENT FOR BIDS
1/0 15 kv CABLE FOR STOCK
HUTCHINSON UTILITIES COMMISSION
HUTCHINSON, MINNESOTA
Notice is hereby given that the Hutchinson Utilities Commission of the City of
Hutchinson, Hutchinson, Minnesota, hereinafter referred to as the Owner, will receive
sealed Bids at the Hutchinson Utilities office until 10:30 a.m. on the 17th day of February,
1999, and will publicly open and read aloud such Bids on the following material:
"1 /0 15 kv Cable for Stock"
Proposals shall be properly endorsed and delivered in an envelope marked,
"1/0 15 kv Cable for Stock" and shall be addressed to: Hutchinson Utilities Commission of
the City of Hutchinson, 225 Michigan Street, Hutchinson, Minnesota 55350.
All proposals shall be submitted in duplicate on the Bidder's own letterhead in
facsimile of the Proposal Form enclosed in the Specifications, or by utilizing the Proposal
Form enclosed with the Specifications by typing the official name of the Bidder at the top
of the form.
Each proposal shall be accompanied by a Bid Bond, made payable to the
Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota, in the
amount of five per cent (5 %) of the Bid, as a guarantee that the Bidder will enter into the
proposed Contract after their Bid has been accepted.
No Bidder may withdraw his Bid or Proposal for a Period of thirty (30) days after date
of opening of Bids.
At the aforementioned time and place, or at such later time and Place as the Owner
then may fix, the Owner will act upon Proposals received and with its sole discretion may
award Contract(s) for the furnishing of said material.
Specifications and Plans are available at the Office of the Hutchinson Utilities, 225
Michigan Street, Hutchinson, Minnesota 55350.
The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson,
Minnesota reserves the right to reject any and all bids.
Y
KkL (2 JD�
Mike Carls, President
Date f -- --� c
ATTESTED B
By
Paul Ackland, Secretary
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1.M.C.
January 27, 1999
Clarence Kadrmas
Hutchinson Public Utility Manger
City of Hutchinson
111 Hassan St. SE
Hutchinson MN 55350 -2522
Re: Trust Member:
Coverage Term:
Covenant No.:
Type of Coverage:
C /Occurrence:
1/27/99 1:04: PAGE 1/2 RightFAX
City of Hutchinson
Hutchinson Utilities Commission
12/1/97 -98
CMC 18001
Boiler and Machinery
8/26/98
Location of Loss: Unit Number 9 at 1100 Industrial Boulevard
Dear Mr. Kadrmas:
Sent this date via
Facsimile, 320- 587 -4721
This letter follows up my recent written communication to you, my telephone conversation with you of January
27, 1999, as well as our meeting in your offices on January 21, 1999. In an effort to bring about a conclusion to
the loss referenced above, LMCIT is providing to you and your Board, an offer to replace the unit with a 25
MW /33,000HP Gas Turbine Engine (GE5002C). It includes:
► Reuse of the brush generator, Lube System and Liquid Fuel Modules;
► New Inlet Plenum and Filtration;
► New Exhaust Plenum and Stack;
► New Enclosures for GT and Access;
► New Foundation(s);
► New Control System;
► Transportation; and
► Installation and Start-Up.
We anticipate the completion time is 6 to 7 months. The offer includes LMCIT's retention of the damaged unit.
The company installing the equipment is Natole Turbine Enterprises; they are providing a 12 month warranty after
Installation and Start-Up. We reserve our rights to substitute the GT Unit with another similar or equivalent unit
to what existed pre-loss in the event we are not able to actually secure the units we have been discussing with you.
l
1.M.C.
Trust Member:
Type of Coverage:
C /Occurrence:
Location of Loss:
page 2
1/27/99 1:04: PAGE 2/2
City of Hutchinson
Hutchinson Utilities Commission
Boiler and Machinery
8/26/98
Unit Number 9 at 1100 Industrial Boulevard
RightFAX
In the alternative, LMCIT will pay cash to the Trust Member in the amount of $4,000,000. That sum includes
some partial anticipated interruption of business type expenses.
All offers are subject to the applicable deductibles. You have already incurred some expenses at our request; we
will reimburse you for those and any future expenses we request that you incur as respects this loss. We
understand that should you elect to accept the offer for replacement of the unit, that the city is receiving a dual
fuel unit, and that a natural gas fuel line with correct pressure brought to within 5 feet of the enclosure will be
installed at your expense. We will handle the hook-up of that line to the unit.
We look forward to your response as soon as possible.
Respectfully,
Doug Gronli
Claims Manager
DG /clw /=cnn;s.wm
C.C.
Dennis Potter
Insurance Planners
PO Box 68
Hutchinson MN 55350
Darin Richardson
Berkley Risk Services
Please distribute to other involved parties
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