12-29-1999 HUCMRegular Meeting
December 29, 1999
Members Present: President, Roger Gilmer; Vice President, Paul Ackland;
Commissioner, Douglas Ward; Commissioner Craig Lenz; General Manager
Kadrmas, and Attorney Marc Sebora.
President Gilmer called the meeting to order at 3:03 p.m.
Commissioner Ward made a motion, seconded by Vice President Ackland to
approve the minutes of November 24, 1999 with the revision that Vice President
Ackland was not in attendance. With that correction, the motion was approved.
Vice President Ackland made a motion, seconded by Commissioner Ward to
approve the minutes of the special meeting of December 9, 1999. The motion
was passed unanimously.
Vice President Ackland made a motion to ratify the payment of bills in the amount
of $1,406,025.18 (detailed listing is in payables book). Commissioner Lenz
seconded the motion which was unanimously approved.
After review of the financial statement and the budget year to date,
Commissioner Lenz made a motion to approve. Seconded by Commissioner
Ward the motion carried unanimously.
Commissioner Lenz made a motion to approve an Advertise for Bids for 1/0
Cable for Stock. Commissioner Ward seconded the motion which passed
unanimously.
Commissioner Ward made a motion seconded by Commissioner Lenz to
approve requisition #12691 from RESCO for a three -phase transformer for the
Walmart expansion. The motion carried.
Requisition #12686 from RESCO was approved with a motion by Commissioner
Ward and seconded by Commissioner Lenz. The motion was unanimous.
Vice President Ackland made a motion by approve a purchase from Ditch Witch
for a trencher replacing the 5010 with requisition #12757. Commissioner Lenz
seconded the motion, which carried unanimously.
Vice President Ackland made a motion to waive the $15.00 late fee for Elizabeth
Horrocks, seconded by Commissioner Ward the motion passed unanimously.
Commissioner Lenz made a motion to approve a transfer of $500,000.00 from
the expansion fund to the checking account. Vice President Ackland seconded
the motion which carried.
Commissioner Ward made a motion, seconded by Vice President Ackland to
approve requisition #12754 for the purchase of natural gas meters for stock.
Seconded by Vice President Ackland, the motion passed unanimously.
Vice President Ackland made a motion to approve the purchase of vehicles in
requisition numbers #12745, #12746, #12751, #12748, and #12747.
Commissioner Ward seconded the motion, which carried unanimously.
The City engineer, John Rodeberg requested $25,000.00 from the 2000 energy
conservation fund for an energy management system at the local H.A.T.S.
facility. Commissioner Ward made a motion for its approval. The motion was
seconded by Vice President Ackland and passed unanimously.
Commissioner Lenz made a motion to approve the bid from Mechanical Systems
Inc. for an emission monitoring system in the amount of $229,500.00. Seconded
by Commissioner Ward, the motion carried.
General Manager Kadrmas informed the Commission that expected delivery date
to Hutchinson for Unit #9 is still May 1St
Commissioner Lenz made a motion to begin condemnation proceedings for the
purchase of land on which to build the McLeod Substation. The motion was
seconded by Vice President Ackland and passed unanimously.
The steel for the building renovation should arrive next week. Construction is
proceeding smoothly.
Unit #1 has been tested and is ready for startup December 31St. We are holding
Deltak's invoice.
The Commission gave their approval to include a reminder stuffer for the 2000
Census along with our statements in March or April.
President Gilmer will attend the Labor /Management meeting on Wednesday,
January 5, 2000 at 9:00 a.m.
There being no further business, Vice President Ackland made a motion to
adjourn. Commissioner Ward seconded by motion which carried.
David Wetterling, Secretary
ATTEST
Roger Gilmer, President
Q(
Regular Meeting
December 29, 1999
Members Present: President, Roger Gilmer; Vice President, Paul Ackland;
Commissioner, Douglas Ward; Commissioner Craig Lenz; General Manager
Kadrmas, and Attorney Marc Sebora.
President Gilmer called the meeting to order at 3:03 p.m.
Commissioner Ward made a motion, seconded by Vice President Ackland to
approve the minutes of November 24, 1999 with the revision that Vice President
Ackland was not in attendance. With that correction, the motion was approved.
Vice President Ackland made a motion, seconded by Commissioner Ward to
approve the minutes of the special meeting of December 9, 1999. The motion
was passed unanimously.
Vice President Ackland made a motion to ratify the payment of bills in the amount
of $1,406,025.18 (detailed listing is in payables book). Commissioner Lenz
seconded the motion which was unanimously approved.
After review of the financial statement and the budget year to date,
Commissioner Lenz made a motion to approve. Seconded by Commissioner
Ward the motion carried unanimously.
Commissioner Lenz made a motion to approve an Advertise for Bids for 1/0
Cable for Stock. Commissioner Ward seconded the motion which passed
unanimously.
Commissioner Ward made a motion seconded by Commissioner Lenz to
approve requisition #12691 from RESCO for a three -phase transformer for the
Walmart expansion. The motion carried.
Requisition #12686 from RESCO was approved with a motion by Commissioner
Ward and seconded by Commissioner Lenz. The motion was unanimous.
Vice President Ackland made a motion by approve a purchase from Ditch Witch
for a trencher replacing the 5010 with requisition #12757. Commissioner Lenz
seconded the motion, which carried unanimously.
Vice President Ackland made a motion to waive the $15.00 late fee for Elizabeth
Horrocks, seconded by Commissioner Ward the motion passed unanimously.
Commissioner Lenz made a motion to approve a transfer of $500,000.00 from
the expansion fund to the checking account. Vice President Ackland seconded
the motion which carried.
�?a
Commissioner Ward made a motion, seconded by Vice President Ackland to
approve requisition #12754 for the purchase of natural gas meters for stock.
Seconded by Vice President Ackland, the motion passed unanimously.
Vice President Ackland made a motion to approve the purchase of vehicles in
requisition numbers #12745, #12746, #12751, #12748, and #12747.
Commissioner Ward seconded the motion, which carried unanimously.
The City engineer, John Rodeberg requested $25,000.00 from the 2000 energy
conservation fund for an energy management system at the local H.A.T.S.
facility. Commissioner Ward made a motion for its approval. The motion was
seconded by Vice President Ackland and passed unanimously.
Commissioner Lenz made a motion to approve the bid from Mechanical Systems
Inc. for an emission monitoring system in the amount of $229,500.00. Seconded
by Commissioner Ward, the motion carried.
General Manager Kadrmas informed the Commission that expected delivery date
to Hutchinson for Unit #9 is still May 1St.
Commissioner Lenz made a motion to begin condemnation proceedings for the
purchase of land on which to build the McLeod Substation. The motion was
seconded by Vice President Ackland and passed unanimously.
The steel for the building renovation should arrive next week. Construction is
proceeding smoothly.
Unit #1 has been tested and is ready for startup December 31St. We are holding
Deltak's invoice.
The Commission gave their approval to include a reminder stuffer for the 2000
Census along with our statements in March or April.
President Gilmer will attend the Labor /Management meeting on Wednesday,
January 5, 2000 at 9:00 a.m.
There being no further business, Vice President Ackland made a motion to
adjourn. Commissioner Ward seconded by Ft o ion which carried.
Davlo,Wetterlin4, Secretary
ATTEST 4`' °-'
Roger ilmer, President
ADVERTISEMENT FOR BIDS
FOR
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 10:00 on the 20th day of January,
2000, and will publicly open and read aloud such Bids on the following work and
equipment:
"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 and provide a Performance Bond after his Bid shall have 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 eserves the right to reject any and all bids.
'1
Roger mer, President
Date December 29, 1999
ATTESTED
By e'� l A.—J
David Wet ng- Secretary
Paul Ackland, Vice President
Date December 29, 1999
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-iutc'ii son ,; "gin .X5350
December 10 ,1999
' o:H, tchinson :11tilitiles %Com- mission
I had planned to present a complaint at the next Commission
meeting on December 29,as su- Bested by personnel at the util-
ities office,but as I will.be out of town then,I am sending
this letter.
I --"eel that the penalty assessed on zy ` overabe will is ex -.
cessive,and unduly severe. ',.y payment was only a day late,though
I concede that it may not have been received at the office until
the second day.
?hen I r entioned this to the f.)erson at the futilities office,he
pointed out that my 'iuqust,1999 payment also was late.i hese are
my only offenses in 31 years of service. I pointed out that the
information on the back of the billstates that a oenalty of 1;
will be charted,xhich it ivas,and the followin7, sentence states
that "an administratative fee of X15. may be assessed: Vince it
is appakently an arbitrary choice,I asked on what basis the "ad-
ministrative fee "is char: ed,and was told that if a customer has
two late payments in a year,that penalty is char,,ed. I don't find
that policy stated anywhere in the information on the back of the
bill.
I am not objecting, to 'oeing.:)enalizrd for late payment,but in view
of the generally sympathetic and user friendly attitude displayed
by the utilities commossion,the ;unitive attitude expressed in this
situation surprises and disappoints me.
I think it would be fairer if :
1. The penalty were assessed on a daily basis,perhaps,so that the
later the payment,the greater the penalty.
2. If,indeed it is established policy to assess the '15.penalty
if there are two late payments in a year,that information should
be included in the payment and penalty information on the back of
the bill,or even more prominently brou?ht to the attention of your
customers.The vagueness of the wording as it now stands does
dive the impression that it is an arbitrary decision,
Very truly yours,
D M C
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ASSOCIATED
A%%�JKL CONSULTANTS
ENGINEERS, INC.
REGISTERED PROFESSIONAL ENGINEERS
3131 FERNBROOK LANE NORTH
MINNEAPOLIS, MINNESOTA 5544L5323
612/559 -5511
FAX 612/559 -5514
WEB SITE: www.acengineers.com
E -MAIL: acei @pciink.com
December 29, 1999
Mr. Clarence Kadrmas
Hutchinson Utilities Commission
225 Michigan Street SE
Hutchinson, MN 55350
Subject: Acid Rain Continuous Emissions Monitoring System (CEMS)
Project 98474
Dear Clarence:
Attached is a copy of the bid tabulation for the above subject project. Also attached is a
distribution list for the bid advertisement and a list of plan holders.
While it is unfortunate that only one bid was received, there are not many CEMS suppliers
presently operating in the US utility market. Two of the plan holders inquired about the
possibility of delaying the bid date, indicating an interest in the project.
The bid that was received fell within ten percent of the engineer's estimate. Although there
were no other bidders, the threat of competition resulted in a good bid.
The bidder, Mechanical Systems, Inc. (MSI) provided a very complete proposal, with two
pages of clarification and a list of the spare parts they propose to supply. MSI has
extensive experience with CEMS for both utility and industrial applications. I received very .
favorable MSI recommendations from both Rochester Public Utilities and the personnel at
NSP's Cottage Grove turbine plant. I also received favorable comments (off the record)
about MSI from an MPCA staff member.
The Hutchinson Utilities Commission may elect to rebid the project. There is no guarantee,
however, that lower bids will be received. In addition, it seems very important to have the
CEMS installed and operating when the turbine begins full production next year. If offered
a contract within the next two weeks, MSI can install the system by the end of March 2000.
Based on the above, ACEI recommends that Hutchinson award a contract to MSI for the
Base Bid Item I. Upon awarding the contract, ACEI will complete the Acid Rain Monitoring
Plan, using the equipment configuration proposed by MSI. The EPA will review the
Monitoring Plan. If the EPA requires CEMS for the LM6000 turbine bypass stack, or for
the Frame 5 replacement turbine, Hutchinson will already have established a cost for these
system additions under Alternates 1 and 2 to Bid Item I.
Very truly yours,
ASSOCIATED CONSULTANTS ENGINEERS, INC.
Steven S. Schreurs, P.E.
SSS /da
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December X 1999
ASSOCIATED CONSULTANTS ENGINEERS, INC.
3131 FERNBROOK LANE NORTH, SUITE 204
MINNEAPOLIS, MN 55447
The Advertisement for Bids for "A CONTINUOUS EMISSION MONITORING SYSTEM
FOR HUTCHINSON UTILITIES COMMISSION, PROJECT NO. 98474,1999" was sent to
the following CEMS contractors:
Altech Environmental
2623 Kaneville Court
Geneva, IL 60134
Campbell -Sevey
15350 Minnetonka Blvd.
Minnetonka, MN 55345
Forney Corporation
3405 Wiley Post Road
Carrollton, TX 75006
KVB Enertec, Inc.
30191 Avenida De Las Banderas
Suite B
Rancho Santa
Margarita, CA 97688
Mechanical Systems, Inc.
480 Progress Way
Sun Prairie, WI 53590
Professional Const. Services
718 South Montana Street
Mitchell, SD 57301
Spectrum Systems
3410 W. Nine Mile Rd.
Pensacola, FL 32526
Construction Update Plan Room
221 Park Street
Des Moines, IA 50309
F.W. Dodge Corp.
7600 Parklawn Avenue, Suite 352
Minneapolis, MN 55435
F.W. Dodge Corp.
11422 Miracle Hills Drive
Omaha, NE 68154
Master Builders of Iowa
221 Park Street
Des Moines, IA 50303
Minneapolis Builders Exchange
1123 Glenwood Ave. N.
Minneapolis, MN 55405
Omaha Builders Exchange
4255 Sou_ th 94' Street
Omaha, NE 68127
Clarence Kadrmas
Hutchinson Utilities
225 Michigan St. SE
Hutchinson, MN 55350
ASSOCIATED CONSULTANTS ENGINEERS, INC.
3131 FERNBROOK LANE NORTH, SUITE 204
MINNEAPOLIS, MN 55447
The following is a list of the plan holders for A CONTINUOS EMISSION MONITORING
SYSTEM FOR HUTCHINSON UTILITIES COMMISSION, HUTCHINSON, MN, PROJECT
NO. 98474,1999:
Mr. Clarence Kadrmas
Hutchinson Utilities
225 Michigan St. SE
Hutchinson, MN
Mechanical Systems
480 Progress Way
Sun Prairie, W1,53590
Campbell -Sevey
15350 Minnetonka Blvd.
Minnetonka, MN 55345
Spectrum Systems, Inc.
3410 W. Nine Mile Rd.
Pensacola, FL 32526 -7808
Ishrat Siddiqui
Forney Corp.
3405 Wiley Post Rd.
Carrollton, TX 75006
Minneapolis Builders Exchange
1123 Glenwood
Minneapolis, MN 55405