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06-29-2005 HUCM Regular Meeting June 29, 2005 Members present: President Craig Lenz; Vice President Donald Walser; Secretary David Wetterling: Commissioner Steven Cook; General Manager Michael Kumm; Attorney Marc Sebora Member absent: Commissioner Ackland. President Lenz called the meeting to order at 3:00 pm. Vice President Walser made a motion to approve the minutes of the May 25, 2005 Regular Meeting. Commissioner Cook seconded the motion and it passed unanimously. Secretary Wetterling made a motion to ratify the payment of bills in the amount of $2,750,907.95 (detailed listing in payable book). Vice President Walser seconded the motion and it passed unanimously. Secretary Wetterling made a motion to approve the financial statement and budget year to date. Vice President Walser seconded the motion and it passed unanimously. Hutchinson Utilities shares the general liability and automobile insurance policy with the City of Hutchinson. When City Council approves the insurance premium, which is a volume discount through the League of Minnesota Cities Insurance Trust, HUC will be notified as to the amount of our premium. Secretary Wetterling made a motion to approve renewal of Hutchinson Utilities general liability and automobile insurance. Commissioner Cook seconded the motion and it passed unanimously. Commissioner Cook will contact City personnel to get a better understanding of this insurance policy. General Manager Kumm presented HUC's mid-year report on goals for 2005: + Financial monitoring: A business plan is being developed and benchmarks have been identified. A policy has been drafted for cash management. A five-year financial forecast will be part of the business plan. Will develop and present 2006 budget. + Resolve legal issues: Some issues have been resolved regarding the condemnation proceedings with regard to the pipeline. We are waiting for the court date regarding the Public Utility Commission Regulation Issue. Legal and regulatory issues with MISO and FERC are complete. + Electrical supply issues: Big Stone 2 power plant project is complete. Will continue to explore joint action membership with MRES. Have developed a plan for downtown power plant. Contracts have been secured for long-term and intermediate term base load power supply. + Finish business plan + Complete reorganizing HUC: Meter Tech last position to fill, then will update organizational chart. + Develop and maintain a strong positive relationship between customers, labor and management: Will continue to send out the mid-month reports to commissioners. President Lenz commended Mike for the informational mid- month reports. Secretary Wetterling made a motion to approve changes to the "Explanation of Billing Procedures" section of the Policies and Requirements booklet. Vise President Walser seconded the motion and it passed unanimously. The wording only was changed to make it easier to read and understand. General Manager Kumm discussed the fuel cost adjustment clause. Problems have been discovered causing the fluctuations in the cost adjustment. HUC will send out requests for proposals to do a cost of service study for both the gas and electric divisions. A reallocation of rates may be necessary. This will be brought to the board for action at the July commission meeting. We will negotiate a new contract with our largest gas customer after the cost of service study is completed. That negotiating might start in September. This will be brought to the board for action at the July commission meeting. We will establish a fuel cost adjustment stabilization fund, providing a ceiling and a floor to that fund. This will be brought to the board for action at the July commission meeting. Imbalance problems have been realized and steps have been taken or are in place to work off those imbalances. Vice President Walser made a motion to approve the donation of our used computers to the local public schools. Secretary Wetterling seconded the motion and it passed unanimously. There is a resolution adopted by the City to donate computers and because there is a fee for proper disposal, we will donate them. The hard drives have been cleaned off. Hutchinson Utilities received a Safety Award from American Public Gas Association for our outstanding safety record for 2004. John Webster commended both the gas and electric divisions for their excellent job performances. Attorney Marc Sebora reported on changing the date of the Commission Board reorganization schedule to coincide with the Utility fiscal year, January to January. Each Commissioners term would be extended from September to January. Attorney Sebora will draft an amendment to the by-laws to reflect this change. Division reports: Electric division - Don Merkins Conversions are going well - working with the gas division Will be crossing the river Luce Line Trail is operational - lines are energized Gas division - John Webster Pipeline easements Gas leak - repaired cracked flange 2 day audit - went very well Operate & maintain 4 mile pipeline in Mankato - agreement drafted (will discuss as agenda item in July) Business division - Jan Sifferath Using old Consolidated Freightway building - putting in 2 garage doors "Panic Button" for account coordinators Trying to promote 'autopay' on utility bills City survey "Local Traffic Flow & Safety Questionnaire" with billing Legal reports: Attorney Sebora attended a workshop at the EOC "Table Top Exercises" (commended Dave Hunstad on his performance) Reported on pending cases Old Business: The rewording of the 0 & M Agreement is not in place yet. People have been on vacation, phone calls are missed. When it's all completed it'll come before the Board for approval. The new powerstat policy is not in place yet. Discussed requIring a deposit before customers get the new powerstat installed. When completed it'll be presented to the Board for approval. New Business: None Secretary Wetterling made a motion to adjourn the meeting at 5:06 pm. Vice President Walser seconded the motion and it passed unanimously. David Wetterling, Secretary ATTEST Craig Lenz, President Regular Meeting June 29, 2005 Members present: President Craig Lenz; Vice President Donald Walser; Secretary David Wetterling: Commissioner Steven Cook; General Manager Michael Kumm; Attorney Marc Sebora. Member absent: Commissioner Ackland. President Lenz called the meeting to order at 3:00 pm. Vice President Walser made a motion to approve the minutes of the May 25, 2005 Regular Meeting. Commissioner Cook seconded the motion and it passed unanimously. Secretary Wetterling made a motion to ratify the payment of bills in the amount of $2,750,907.95 (detailed listing in payable book). Vice President Walser seconded the motion and it passed unanimously. Secretary Wetterling made a motion to approve the financial statement and budget year to date. Vice President Walser seconded the motion and it passed unanimously. Hutchinson Utilities shares the general liability and automobile insurance policy with the City of Hutchinson. When City Council approves the insurance premium, which is a volume discount through the League of Minnesota Cities Insurance Trust, HUC will be notified as to the amount of our premium. Secretary Wetterling made a motion to approve renewal of Hutchinson Utilities general liability and automobile insurance. Commissioner Cook seconded the motion and it passed unanimously. Commissioner Cook will contact City personnel to get a better understanding of this insurance policy. General Manager Kumm presented HUC's mid -year report on goals for 2005: + Financial monitoring: A business plan is being developed and benchmarks have been identified. A policy has been drafted for cash management. A five -year financial forecast will be part of the business plan. Will develop and present 2006 budget. + Resolve legal issues: Some issues have been resolved regarding the condemnation proceedings with regard to the pipeline. We are waiting for the court date regarding the Public Utility Commission Regulation Issue. Legal and regulatory issues with MISO and FERC are complete. + Electrical supply issues: Big Stone 2 power plant project is complete. Will continue to explore joint action membership with MRES. Have developed a plan for downtown power plant. Contracts have been secured for long -term and intermediate term base load power supply. + Finish business plan + Complete reorganizing HUC: Meter Tech last position to fill, then will update organizational chart. (` + Develop and maintain a strong positive relationship between customers, labor and management: Will continue to send out the mid -month reports to commissioners. President Lenz commended Mike for the informational mid - month reports. Secretary Wetterling made a motion to approve changes to the "Explanation of Billing Procedures" section of the Policies and Requirements booklet. Vise President Walser seconded the motion and it passed unanimously. The wording only was changed to make it easier to read and understand. General Manager Kumm discussed the fuel cost adjustment clause. Problems have been discovered causing the fluctuations in the cost adjustment. HUC will send out requests for proposals to do a cost of service study for both the gas and electric divisions. A reallocation of rates may be necessary. This will be brought to the board for action at the July commission meeting. We will negotiate a new contract with our largest gas customer after the cost of service study is completed. That negotiating might start in September. This will be brought to the board for action at the July commission meeting. We will establish a fuel cost adjustment stabilization fund, providing a ceiling and a floor to that fund. This will be brought to the board for action at the July commission meeting. Imbalance problems have been realized and steps have been taken or are in place to work off those imbalances. Vice President Walser made a motion to approve the donation of our used computers to the local public schools. Secretary Wetterling seconded the motion and it passed unanimously. There is a resolution adopted by the City to donate computers and because there is a fee for proper disposal, we will donate them. The hard drives have been cleaned off. Hutchinson Utilities received a Safety Award from American Public Gas Association for our outstanding safety record for 2004. John Webster commended both the gas and electric divisions for their excellent job performances. Attorney Marc Sebora reported on changing the date of the Commission Board reorganization schedule to coincide with the Utility fiscal year, January to January. Each Commissioners term would be extended from September to January. Attorney Sebora will draft an amendment to the by -laws to reflect this change. Division reports: Electric division — Don Merkins Conversions are going well — working with the gas division Will be crossing the river Luce Line Trail is operational — lines are energized Gas division — John Webster Pipeline easements Gas leak — repaired cracked flange 2 day audit — went very well Operate & maintain 4 mile pipeline in Mankato — agreement drafted (will discuss as agenda item in July) Business division — Jan Sifferath Using old Consolidated Freightway building — putting in 2 garage doors "Panic Button" for account coordinators Trying to promote 'autopay' on utility bills City survey "Local Traffic Flow & Safety Questionnaire" with billing Legal reports: Attorney Sebora attended a workshop at the EOC "Table Top Exercises" (commended Dave Hunstad on his performance) Reported on pending cases Old Business: The rewording of the O & M Agreement is not in place yet. People have been on vacation, phone calls are missed. When it's all completed it'll come before the Board for approval. The new powerstat policy is not in place yet. Discussed requiring a deposit before customers get the new powerstat installed. When completed it'll be presented to the Board for approval. New Business: None Secretary Wetterling made a motion to adjourn the meeting at 5:06 pm. Vice President Walser seconded the motion and it passed unanimously. ATTEST raig Lenz r dent /S Proposed changes to HUC's Policies and Requirements booklet "EXPLANATION OF BILLING PROCEDURE" section A bill for services is sent to the address provided by the customer approximately 1 te-3 3 to 5 days after the meters have been read. The customer then has approximately 10 days to pay the bill in full on the due date. Bills paid after the due date will incur the following charges: • a 1 % per month late payment charge on any unpaid balance. • A _$15 processing fee for payments received after the due date. An NSF charge will also be assessed if a check is returned to us for non - sufficient funds: plus: a. Trip charge to deliver a door hanger, giving customer 24 hours to make check good. b. Trip charge to disconnect. C. Trip charge to reconnect after payment has been received. A oustomer with an inadequate payment histery, inoluding but not limited te payments, diSGenneGilen fnr nonpayment isGe'nn eGtionn fe +ss anGe of a non_GUffinient Ghe& ever the last 12 menths, may also be $16 f� eXGuse l if the GUStnmer icy late for the first time after one yeaF of cn_time 0 HUG FeseFves the right in its diSGretien te impose the 1 However, per rne late payment nh^rge desnrihed above ,uaa+ payment n At the bottom of the next monthly bill and by separate letter, a late notice warning of pending disconnection is geneFall given which allows the customer approximately 10 -20 days to pay the bill or contact the Customer Service Department to make other arrangements. Examples of other arrangements may include agreement to a budget plan or payments by other agencies. Failure to make payment by the stated date and time will be considered a violation of the notice of pending disconnection. If full payment or other arrangements have not been made by the deadline, HUC personnel are sent to the meter location to disconnect utility services fernenpayment (see disconnection of services section). HUG is not-a nredit agennae v��m a - czg�i -rri� • IT IS ALWAYS YS THE CUSTOMER'S RESPONSIBILITY TO PAY BILLS 4N A TIMELY MANNER- ON TIME AND IN FULL. UNLESS GTHERWIc� AGREED. • IT ALSO IS THE CUSTOMER'S RESPONSIBILITY TO KEEP HUC FULLY ADVISED OF ANY CHANGE OF ADDRESS.