07-27-2005 HUCM
Regular Meeting
July 27, 2005
Members present: Vice President Donald Walser; Secretary David Wetterling;
Commissioner Paul Ackland; Commissioner Steve Cook; General Manager Michael
Kumm.
Members absent: President Craig Lenz; Attorney Marc Sebora
Vice President Walser called the meeting to order at 3:00 pm.
Secretary Wetterling made a motion to approve the minutes of the June 29, 2005
Regular Meeting. Commissioner Cook seconded the motion and it passed unanimously.
Commissioner Ackland made a motion to ratify the payment of bills in the amount of
$3,242,192.14 (detailed listing in payable book). Secretary Wetterling seconded the
motion and it passed unanimously.
Manager Kumm discussed the positive relationship with MISO and the corrective
measures that are in place to recapture the energy bills. Commissioner Ackland made a
motion to approve the financial statement and budget year to date. Secretary Wetterling
seconded the motion and it passed unanimously.
The current position of meter reader is a contracted position and will be vacant in the
near future. HUC can bring the position back in-house in conjunction with City and
share the cost of reading all HUC's electric and gas meters, and City's water meters.
Commissioner Wetterling made a motion to authorize the hiring of a meter reader, upon
staff reviewing the economics of hiring a meter reader. Commissioner Cook seconded
the motion and it passed unanimously.
Commissioner Ackland made a motion to table the approval of the change in language
in the 0 & M Maintenance Agreement with GRE. Commissioner Cook seconded the
motion and it passed unanimously.
Manager Kumm discussed the fuel cost adjustment clause. The imbalances caused by
Northern Border Pipeline, New Ulm, and HUC's nominations vs. sold-on-system, have
been minimized and/or eliminated. We still need to perform a cost of service study;
negotiate contract with largest gas customer; establish a fuel cost adjustment
stabilization fund to correct the customer service imbalance; and modify spreadsheets.
Manager Kumm discussed the need for a cost of service study for both the electric and
gas divisions. It's been several years since the last study was performed. This will also
benefit the fuel cost adjustment clause. Commissioner Ackland made a motion to
approve the proposal from R W Beck for an electric and natural gas rate study.
Secretary Wetterling seconded the motion and it passed unanimously.
The amendments to the by-laws were discussed. Each commissioner's term shall
expire on December 31 st of the last year of that Commissioner's appointed term.
Commissioner Cook made a motion to approve the amendments to the By-Laws.
Commissioner Ackland seconded the motion and it passed unanimously.
Division reports:
Business division - Jan Sifferath
Working on cash-flow analysis
5-year forecast study
Panic button for account coordinators - purchase agreement signed - installed
next week
Electric division - Don Merkins
Conversions still going well
Services are going in
Projects started
Gas division - John Webster
Construction caught up - waiting for developers
Pipeline easements being signed
1 st condem nation hearing scheduled for August 16, 2005 in St. James
Digital camcorder recording of pipeline - visual survey of crops
Dustin Cross wants to do crop yield analysis
Legal reports:
None
Commissioner Ackland met with Manager Kumm for a performance review. Because of
President Lenz' absence, that review will be presented at the August meeting.
Old Business
None
New Business
None
Commissioner Ackland made a motion to adjourn the meeting at 5:20 pm.
Commissioner Cook seconded the meeting and it passed unanimously.
David Wetterling, Secretary
ATTEST
Craig Lenz, President
/%
Regular Meeting
July 27, 2005
Members present: Vice President Donald Walser; Secretary David Wetterling;
Commissioner Paul Ackland; Commissioner Steve Cook; General Manager Michael
Kumm.
Members absent: President Craig Lenz; Attorney Marc Sebora.
Vice President Walser called the meeting to order at 3:00 pm.
Secretary Wetterling made a motion to approve the minutes of the June 29, 2005
Regular Meeting. Commissioner Cook seconded the motion and it passed unanimously.
Commissioner Ackland made a motion to ratify the payment of bills in the amount of
$3,242,192.14 (detailed listing in payable book). Secretary Wetterling seconded the
motion and it passed unanimously.
Manager Kumm discussed the positive relationship with, MISO and the corrective
measures that are in place to recapture the energy bills. Commissioner Ackland made a
motion to approve the financial statement and budget year to date. Secretary Wetterling
seconded the motion and it passed unanimously.
The current position of meter reader is a contracted position and will be vacant in the
near future. HUC can bring the position back in -house in conjunction with City and
share the cost of reading all RUC's electric and gas meters, and City's water meters.
Commissioner Wetterling made a motion to authorize the hiring of a meter reader, upon
staff reviewing the economics of hiring a meter reader. Commissioner Cook seconded
the motion and it passed unanimously.
Commissioner Ackland made a motion to table the approval of the change in language
in the O & M Maintenance Agreement with GRE. Commissioner Cook seconded the
motion and it passed unanimously.
Manager Kumm discussed the fuel cost adjustment clause. The imbalances caused by
Northern Border Pipeline, New Ulm, and HUC's nominations vs. sold -on- system, have
been minimized and /or eliminated. We still need to perform a cost of service study;
negotiate contract with largest gas customer; establish a fuel cost adjustment
stabilization fund to correct the customer service imbalance; and modify spreadsheets.
Manager Kumm discussed the need for a cost of service study for both the electric and
gas divisions. It's been several years since the last study was performed. This will also
benefit the fuel cost adjustment clause. Commissioner Ackland made a motion to
approve the proposal from R W Beck for an electric and natural gas rate study.
Secretary Wetterling seconded the motion and it passed unanimously.
0
The amendments to the by -laws were discussed. Each commissioner's term shall
expire on December 31St of the last year of that Commissioner's appointed term.
Commissioner Cook made a motion to approve the amendments to the By -Laws.
Commissioner Ackland seconded the motion and it passed unanimously.
Division reports:
Business division — Jan Sifferath
Working on cash -flow analysis
5 -year forecast study
Panic button for account coordinators —
next week
Electric division — Don Merkins
Conversions still going well
Services are going in
Projects started
purchase agreement signed — installed
Gas division — John Webster
Construction caught up — waiting for developers
Pipeline easements being signed
1 st condemnation hearing scheduled for August 16, 2005 in St. James
Digital camcorder recording of pipeline — visual survey of crops
Dustin Cross wants to do crop yield analysis
Legal reports:
None
Commissioner Ackland met with Manager Kumm for a performance review. Because of
President Lenz' absence, that review will be presented at the August meeting.
Old Business
None
New Business
None
Commissioner Ackland made a motion to adjourn the metiiqg at 5:20 pm.
Commissioner Cook seconded the meeting and it passed unanim usl . /-I
ATTE�
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"IULAHVED
JUL U 6 2005
July 5, 2005
Mr. Mike Kumm
General Manager
Hutchinson Utilities Commission
225 Michigan St. SE
Hutchinson, MN 55350
Subject: Proposal for Electric and Natural Gas Rate Study
Dear Mike:
In response to your request, we are sending you this letter proposal to perform a cost -of- service
and rate design study for the Electric and Gas Divisions (Divisions) of Hutchinson Utilities
(Hutchinson). The design of new retail electric and gas rates will be based on two principal
components of the study. The first is the examination of the revenue requirements for both
Divisions. This will be performed to determine any overall revenue adjustments that are
necessary. The second component of the study, the cost of service analysis, is performed to
determine the allocated cost of providing service to each class of customers in the two Divisions.
The results of the cost of service study are used to determine the relative levels of revenues
collected from each class of customers as well as for designing individual components of the
retail rates. These components will be utilized in the electric and gas rate design.
Our proposal also includes performing an analysis to unbundle the costs of each Division. In
this analysis, costs will be broken into components to reflect such cost categories as gas /power
supply, transmission, distribution and customer services, or other categories as will be
determined. These unbundled costs will provide utility management with information that is
useful in assessing how changes in the industry could potentially affect Hutchinson.
R. W. Beck personnel involved in this project will primarily include Mr. David Berg, Project
Manager, and Ms. Theresa Kervin, Rate Analyst. Kevin Favero, who has been working with
Hutchinson over the past year, and Ms. Catherine Elder, R. W. Beck's most senior natural gas
expert, will also be available as technical consultants to the project.
We look forward to the prospect of continuing our working relationship with Hutchinson.
Please do not hesitate to call me if you have any questions regarding this proposal.
Scope of Services
R. W. Beck, upon authorization from Hutchinson Utilities Commission (Commission), will
perform a cost of service and unbundled rate study for the Electric Division and the Gas
Division. The services provided in connection with this assignment will include the following
tasks for both Divisions: analysis of historical operating results, development of future revenues
and revenue requirements, a cost -of- service analysis, an evaluation of the unbundled cost of
serving each customer classification and the design of proposed new rates. The proposed Study
Period for this project is 2005 -2009.
00-00000-60407-53111 000022 1 PA004712 Hutchinson \Gas & Elec Rate Study Proposal\B 1586- Proposal letterl.doc
1380 Corporate Center Curve, Suite 305 St. Paul, MN 55121 Phone (651) 994 -8415 Fax(651)994-8396 0
Mr. Mike Kumm
July 5, 2005
Page 2
Task 1 Data Compilation
At the end of this Section, we have provided an initial list of data necessary to develop a
projection of revenue requirements and to perform the analysis to determine allocation factors,
cost of service and rate design. This list will allow Hutchinson staff to begin locating and
compiling the necessary data to move the Study along smoothly. Upon receipt of this data, R.
W. Beck will organize the material and create computer files that will be used in the various
types of analyses needed in this study.
Revenue Requirements. Development of the revenue requirements will include review of annual
historical and budgeted operating expenses, the cost of additions to the system anticipated by the
Division and any other financial obligations of the Commission, such as return on investment
and dividend and the impact on transfers to the City. The data, to be provided by the Divisions
and reviewed by the Project Team, shall cover the most recent five years (the most recent year is
considered the "Test Year ").
Allocation Data. The data required to complete the study includes monthly billing and accounting
data related to the Divisions' retail electric and natural gas operations: peak demand, monthly
sales volumes by class (kWh or MCF) and number, size and type of customers for each retail
rate class and data related to any contract customers.
Task 2 Project Kick -Off Meeting and Data Review
R. W. Beck will spend one day in Hutchinson at its office to participate in a project kick -off
meeting. During this meeting, R. W. Beck and Hutchinson staff will discuss:
• The goals of both Divisions for their services and retail rates.
• Information provided to R. W. Beck from Task 1.
• Project approach to meet each Division's goals regarding philosophy of service
offerings, overall pricing, large customer issues and Fuel Cost or Power Cost Adjustment
calculations.
• Terms of gas service to 3M Corporation and how best to reflect this gas service in the
cost -of- service analysis, rate design and other aspects of this study.
Task 3 Develop Pro Forma
R. W. Beck will develop pro forma operating results and cash reserves showing each Division's
forecasted revenues and expenses for a 5 year study period ( "Study Period "). These pro formas
will reflect our forecast of purchased gas or purchased/generated power and transportation
expenses, which will be based on our forecast of retail sales. We will also forecast other
operating expenses and capital improvements, based on historical expenses and discussions with
Hutchinson staff. Revenues will reflect forecasted sales at current rates plus revenues
anticipated under the Gas Division's Fuel Cost Adjustment or the Electric Division's Power
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Mr. Mike Kumm
July 5, 2005
Page 3
Cost Adjustment rates. The pro formas will be created to examine each Division's return on net
assets.
Task 4 Review 3M Corporation Gas Service Contract
R. W. Beck will review the current contract for gas service provided by Hutchinson to 3M
Corporation. Based on the Gas Division's goals and concerns discussed in Task 2, R. W. Beck
will provide recommendations on renegotiation of the contract terms.
Task 5 Perform Cost -of- Service Analysis
For each Division, R. W. Beck will analyze Test Year expenses and classify them into
appropriate categories. The service characteristics of the customer classes will be used as the
basis for allocating the classified costs to each class. Allocated costs by class will be compared
to the Test Year revenues by class to determine the adjustments needed to match revenues from
each class to the costs of providing service to that class.
Task 6 Develop Unbundled Costs and Revenues
For each Division, Test Year expenses by class will be unbundled into different functional
categories. Typical functional categories are: gas or power supply, transmission, distribution
and customer services. Functional categories most appropriate for each Division will be
determined after discussion with Division staff. Examination of unbundled costs will provide
additional information as we work with the Divisions to design new rates.
Task 7 Prepare Initial Report
R. W. Beck will prepare an initial report of the findings to date and submit it to Hutchinson staff
for review.
Task 8 Planning Meeting with Staff
R. W. Beck will meet with Hutchinson staff to review the study results to date and to identify
what, if any, changes are to be made to existing retail electric and gas rates.
Task 9 Design Rates and Rate Comparison
Based on the results of the above meeting, R. W. Beck will design proposed new electric and
gas rates for each customer rate class and prepare a presentation comparing typical monthly bills
under existing and proposed rates for customers in each rate class. R. W. Beck will identify
changes that enhance each Division's financial integrity and recover costs in an equitable
manner. Consideration will be given in the gas rate design to the gas service provided to 3M
Corporation. Street light rates will be developed that recover the cost of supplying electricity to
the City owned street lights. The Fuel Cost Adjustment base rate and methodology will be
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Mr. Mike Kumm
July 5, 2005
Page 4 ■
reviewed and updated, and the benefits of establishing a Gas Rate Stabilization Fund will be
discussed. The Power Cost Adjustment will be examined in a similar manner.
Task 10 Prepare Preliminary Report
R. W. Beck will prepare a written report describing the planning and analyses undertaken in the
study. The report will include recommended new rates for each rate class in the Electric and
Gas Divisions, as necessary. Estimated operating results at proposed rates will be shown for
each Division. R. W. Beck will provide an electronic copy (pdf form) of this preliminary report
to Hutchinson for review and comment. Five hard copies will also be provided, if requested.
Task 11 Present Preliminary Report To Utilities Commission
R. W. Beck will meet with representatives of Hutchinson and the Utilities Commission and, if
requested, participate at the same time in a Public Informational Meeting to present the
preliminary report and to answer any questions regarding the study.
Task 12 Submit Final Report
Based on comments received from Hutchinson staff and from the meeting with the Utilities
Commission, R. W. Beck will finalize the report and submit 10 copies to Hutchinson.
Task 13 Present Final Report To Utilities Commission
R. W. Beck will meet with representatives of Hutchinson and the Utilities Commission to
present the final report and to answer any questions regarding the study.
Task 14 Present Final Report To City Council
R. W. Beck will meet with the City Council and, if requested, participate at the same time in a
Public Informational Meeting to present the final report and to answer any questions regarding
the study.
Meetings
This scope includes five meetings in Hutchinson with the two Divisions:
• Task 2 —Project Kick -Off with Hutchinson personnel
• Task 8 — Planning Meeting with Hutchinson personnel
• Task 11— Preliminary Study Presentation to Utilities Commission
• Task 13 — Final Study Presentation to Utilities Commission
• Task 14 — Final Study Presentation to City Council
00-00000-60407-53111000022 1 PA004712 Hutchinson \Gas & Elec Rate Study ProposaW31586- Proposal letterl.doc
Mr. Mike Kumm
July 5, ""
Page 5
Additional Services
R. W. Beck is available to provide assistance in planning contract negotiations with 3M
Corporation or to participate in actual contract negotiations. These and any other requested
services not included in the Scope of Services described above will be provided based on the
actual cost of labor and expenses.
Schedule
A chart outlining the tasks to be completed has been included on the following page. The
schedule is assumed to begin July 18. Based on our discussions, we plan to complete the study
and present the results to the City Council in early October. If a more expedited schedule is
needed, we can adjust our project schedule to accommodate your needs, providing the
information we need to complete the study is made available on an expedited basis.
Project Milestones
Kick -Off Meeting July 18, 2005
Planning Meeting August 25, 2005
Submit Preliminary Report September 14, 2005
Present Preliminary Report to Commission September 21, 2005
Present Final Report to Commission September 28, 2005
Present Final Report to City Council October 10, 2005
Compensation
We propose that, upon submission of monthly invoices, Hutchinson pay R. W. Beck, Inc. an
amount equal to the actual hours of services furnished multiplied by R. W. Beck's current hourly
rates. Additionally, Hutchinson will reimburse R. W. Beck monthly, at cost or then current rates
for all expenses directly chargeable to services furnished.
R. W. Beck proposes to provide the scope of services outlined above for a total compensation
not to exceed $46,000.
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Mr. Mike Kumm
July 5, 2005
Page 6
Information to Be Furnished By Hutchinson
Electric Division
The Electric Division will assist R. W. Beck by providing the following:
1. Power Cost Adjustment (PCA): base rate, method of calculation, PCA rate for each month
in 2004 and year -to -date 2005, PCA revenues for each month in 2004 and year -to -date
2005.
2. For 2000 through year -to -date 2005, the following items:
a. Annual electric consumption by rate schedule
b. Monthly electric consumption by rate schedule, 2004 and YTD 2005 only
c. Annual billing demand by rate schedule for each demand billed class
d. Monthly billing demand by rate schedule, 2004 and YTD 2005 only
e. Average number of customers by rate schedule
f. Total system retail kWh sales, including all rate schedules
g. Total electric system requirements and losses
h. Monthly system peak demands
i. Annual revenues by rate schedule, segregated by demand and energy billing, where
appropriate.
3. Copies of all rate schedules covering 2000 through 2005.
4. Scheduled capital expenditures for 2005 through 2009, and the intended method of funding
such expenditures.
5. Annual Division financial reports for 2000 -2004 and YTD 2005 actual expenses.
6. Annual Division budgets for 2005 — 2009, as available.
7. A list of electric service provided free of charge or at a discount for 2004.
8. Copies of monthly electric bills during 2004 for each of the Division's 10 largest customers.
9. A detail of any special allocations of Division capital or operating expenditures to
individual customers or customer classes, and the basis for such allocations.
10. Identification of any anticipated major load additions for 2005 through 2009.
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Mr. Mike Kumm
July 5, 2005
Page 7
11. Method of determining transfers to the City.
12. Copies of monthly bills from Hutchinson's wholesale electric provider(s) for 2004.
13. Copies of current contracts covering wholesale electric purchases.
14. Copies of the wholesale electric rate schedules.
15. Listing of Division plant -in- service and 2004 depreciation schedule.
16. Information on current debt service for the Division and any planned debt for 2005-
2009.
17. Identification of any customer receiving service at the primary level or receiving a
discount for transformer ownership.
18. Number of street light fixtures for each wattage.
Information to Be Furnished By Hutchinson
Gas Division
The Gas Division will assist R. W. Beck by providing the following:
1. Fuel Cost Adjustment (FCA): base rate, method of calculation, FCA rates for each month in
2004 and year -to -date 2005, FCA revenues for each month in 2004 and year -to -date 2005.
2. For 2000 through year -to -date 2005, the following items:
a. Annual natural gas consumption by rate schedule
b. Monthly natural gas consumption by rate schedule, 2004 and YTD 2005 only
c. Contract demand by rate schedule
d. Annual billing demand by rate schedule, if available
e. Monthly billing demand by rate schedule, 2004 and YTD 2005 only
f. Average number of customers by rate schedule
g. Total natural gas system sales
h. Total natural gas system requirements and losses
i. Annual revenues by rate schedule.
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Mr. Mike Kumm
July 5, 2005
Page 8
3. Copies of all rate schedules covering 2000 through 2005.
4. Scheduled capital expenditures for 2005 through 2009, and the intended method of funding
such expenditures.
5. Annual Division financial reports for 2000 -2004 and YTD 2005 actual expenses.
6. Annual Division budgets for 2005 — 2009, as available.
7. A list of natural gas service provided free of charge or at a discount for 2004.
8. Copies of monthly gas bills during 2004 for each of the Division's 10 largest customers.
9. A detail of any special allocations of Division capital or operating expenditures to
individual customers or customer classes, and the basis for such allocations.
10. Identification of any anticipated major load additions for 2005 through 2009.
11. Method of determining transfers to the City.
12. Copies of monthly bills from Hutchinson's wholesale gas provider(s) for 2004 covering all
commodity, transportation and storage expenses.
13. Copies of current contracts covering purchase of natural gas commodities, transportation
and storage services.
14. Copies of the wholesale natural gas rate schedules.
15. Listing of Division plant -in- service and 2004 depreciation schedule.
16. Information on current debt service for the Division and any planned debt for 2005-
2009.
17. Current contract terms and at least two years of historical sales to 3M Corporation
L---J
00-00000-60407-53111000022 1 PA004712 Hutchinson \Gas & Elec Rate Study Proposal\B1586- Proposal letterl.doc
Mr. Mike Kumm
July" ""
Page 9
If this proposed scope of services meets with your approval, we can perform these services
under the signed Professional Services Agreement (PSA) between Hutchinson Utilities and
R. W. Beck, dated July 7, 2004. There is an approval signature block below for you to authorize
R. W. Beck to provide these services. Please return one signed copy of this authorization to me.
Please contact me if you have any questions.
Sincerely,
R. BECK
David A. Berg, P.E.
Principal and Senior
Approved:
&4
Hutchinson Utilities Commission
00-00000-60407-53111000022 1 PA004712 Hutchinson \Gas & Elec Rate Study Proposal\B1586- Proposal letterl.doc
Mr. Mike Kumm
July 5, 2005
Page 9
If this proposed scope of services meets with your approval, we can perform these services
under the signed Professional Services Agreement (PSA) between Hutchinson Utilities and
R. W. Beck, dated July 7, 2004. There is an approval signature block below for you to authorize
R. W. Beck to provide these services. Please return one signed copy of this authorization to me.
Please contact me if you have any questions.
Sincerely,
OVINE
David A. Berg, P.E.
Principal and Senior
Approved:
Hutchinson Utilities Commission
Michael L. Kumm, General Manager
00-00000-60407-53111000022 1 PA004712 Hutchinson \Gas & Elec Rate Study Proposal\B1586- Proposal letterl.doc
Resolution 170
As per resolution #1000 adopted 11 -29 -06
Numbering resolutions from 1936 — 2006
For search purposes only
A RESOLUTION AMENDING ARTICLE III, SECTIONS 9 AND 10 OF THE
HUTCHINSON UTILITIES COMMISSION BY -LAWS TO DEFINE THE
TERMS OF SERVICE OF COMMISSION MEMBERS
WHEREAS, the Hutchinson City Charter contains provisions for the appointment
of the Commissioners of the Hutchinson Utilities Commission and sets for the duration of
the fiscal year of the Hutchinson Utilities Commission as the calendar year; and,
WHEREAS, the By -laws of the Hutchinson Utilities Commission require a
reorganization meeting of the Hutchinson Utilities Commission in September of each
year; and,
WHEREAS, the appointments of all,other City officers, boards and commissions
occur in January of each year; and,
WHEREAS, to bring the By -laws and practices of the Hutchinson Utilities
Commission into conformity of the schedule of appointments with the remainder of the
City of Hutchinson,
NOW, THEREFORE, BE IT RESOLVED BY THE HUTCHINSON UTILITIES
COMMISSION:
THAT the amendments to Article III, Sections 9 and 10 of the Hutchinson
Utilities Commission Bylaws, as attached as Exhibit A hereto, are hereby adopted.
Adopted by the Hutchinson Utilities Commission this 27th day of July, 2005.
ATTEST:
Vice President
C
BY -LAWS
OF
HUTCHINSON UTILITIES COMMISSION
HUTCHINSON, MINNESOTA
ARTICLE I
Office of Commission
SECTION - 1 The office of the Hutchinson Utilities
Commission is located at 225 Michigan Street, Hutchinson,
Minnesota.
ARTICLE II
Meetings
Section - 1 Regular meetings of the Hutchinson Utilities
Commission will be held at 3:00 p.m. on the last Wednesday of each
month at the utility office.
Section - 2 Special and emergency meetings of the Hutchinson
Utilities Commission may be called at any time by the President or
by any two Commissioners to be held at the Commissioner's room or
at such place or places as the Commissioners may from time to time
designate.
1
Section - 3 Notice of all special and emergency meetings of
the Hutchinson Utilities Commission shall comply with public
meeting laws and each Commissioner shall be notified by telephone
or by letter.
Section - 4 A majority of the Commissioners shall constitute
a quorum for the transaction of business, and the votes of a
majority of the Commissioners present, shall be sufficient to adopt
any motion or resolution. The votes of members on any action shall
be taken by ayes and nays and recorded in the minutes.
ARTICLE III
Commissioners, Officers and Employees
SECTION - 1 The Hutchinson Utilities Commission, by
resolution, shall appoint a General Manager and such other
employees as it shall deem necessary, who shall hold their offices
for such term and shall exercise such powers and perform such
duties as shall be determined from time to time by the Commission.
SECTION - 2 The Hutchinson Utilities Commission, upon
recommendation of the General Manager and the filing of
applications, shall appoint all staff employees of the Hutchinson
Utilities.
2
SECTION - 3 Each member of the Hutchinson Utilities
Commission shall be entitled to be reimbursed for his actual and
necessary traveling and hotel expenses incurred whenever it shall
be necessary for him to travel outside the City of Hutchinson in
carrying out his duties, which travel may be required of him by law
or by vote or resolution of the Commission.
The compensation of members and amounts due them as
reimbursement for expenses shall be paid at the end of each month
upon itemized statements duly verified.
SECTION - 4 Any officer, agent or employee elected or
appointed by the Commission may be removed at any time by the
Commission.
SECTION - 5
The salaries of all officers, agents and
employees of the Commission shall be fixed by the Commission.
SECTION - 6 The President shall preside at all meetings at
which he is present. In the absence of the President, the Vice
President shall assume all of his duties. He shall make such
reports to the Council as are required of the Commission and shall
perform such other duties as are incident to his office or are
properly required of him.
SECTION - 7 The Secretary shall sign, execute or acknowledge
with the President, all instruments authorized by the Commission
and shall perform such other duties as prescribed from time to time
by the Commission or as are incident to his office.
SECTION - 8 OFFICERS The officers of the commission shall be
a President and Vice President.
SECTION - 9 ELECTION AND TENURE The Commission shall annually
elect the officers of the commission at its January meeting. Such
elected officers will assume their offices the first day of
February. Each officer shall hold office for a one -year term and
until such officer's successor is elected. There shall be a limit
of two successive terms that an officer may serve.
SECTION - 10 TERMS OF COMMISSIONERS The appointment and
length of service of each Commissioner shall be set forth in the
Hutchinson City Charter. Each Commissioner's term shall expire on
December 31St of the last year of that Commissioner's appointed
term. Commissioners shall continue in office until their successor
has been appointed and qualified.
ARTICLE IV
Appointive Officers of
Hutchinson Utilities Commission
SECTION - 1 GENERAL MANAGER
A. The General Manager shall be the chief executive officer of
Hutchinson Utilities Commission. He /she shall be chosen by the
Commission on the basis of their executive and administrative
qualifications for the supervision and direction of all
operations and business of Hutchinson Utilities properties.
All other things being equal, the Commission shall appoint as
General Manager a person with experience in construction,
operation and management of public utilities, No member of the
Commission shall, during the time for which appointed or
within two years thereafter, be chosen as General Manager. In
case of absence or disability of the General Manager, the
Commission shall designate an appropriate replacement to
perform the duties of the office during such absence or
disability.
B. The General Manager shall have full charge and control of the
construction of all work under the jurisdiction of the
Commission, the maintenance and operation thereof, and the
administration of the business affairs of the Commission. The
powers of the General Manager shall be:
5
1. To see that these By -Laws and all rules and regulations of
the Commission are enforced.
2. To see that the operation, construction and maintenance of
the Hutchinson Utilities properties conform to all
provisions of the City Charter.
3. To see that all supplies and materials are purchased
according to the policies on purchasing.
4. To attend all meetings of the Hutchinson Utilities
Commission, to submit reports of the affairs of the
Hutchinson Utilities Commission and to participate in the
discussion of all matters coming before the Commission.
5. To keep the Commissioners advised as to the financial
condition and future needs of the department, and to
prepare and submit an annual budget, and to furnish
quarterly budgets to the Commission.
6. To prepare or cause to be prepared, all plans and
specifications for the construction of the works of the
Commission.
7. To devote his entire time to the business of the
Commission.
8. To prepare or have prepared for presentation to the
Commission for its consideration, approval, rules and
regulations as follows:
A. Information and requirements for electrical service.
6
LJ
B.
C.
D.
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Information and requirements for natural gas service.
Management policy in relation to employees
compensation.
Manual of accounting instructions.
perform such other and additional duties as the
emission may require.
SECTION - 2 The duties of all other appointees and employees
shall be prescribed from time to time by the General Manager with
approval of the Commission.
ARTICLE V
Certain Rules, Regulations and Procedures of
Hutchinson Utilities Commission
SECTION - 1 ACCOUNTING
A. The books and accounts of the Commission shall be kept in so
far as practicable in conformity with the uniform system of
accounts as prescribed by the Federal Energy Regulatory
Commission and so as to facilitate the annual reporting of all
transactions of the Commission funds.
1. The present value of the electric system shall be taken as
the actual historical cost of the property in use and
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useful in the production and distribution of electrical
energy.
2. The present value of the natural gas system shall be taken
as the actual historical cost of the property in use and
useful in the distribution of natural gas.
SECTION - 2 RATES
General - The Commission shall fix rates for electrical energy
and natural gas service to the ultimate consumer without
discrimination between consumers of same class, and no rate
shall be charged or practice adopted which will grant a
discriminatory rate, rebate or other special concession to any
consumer served by the Hutchinson Utilities Commission. It is
specifically understood that the City is a consumer within the
meaning of this section and further it is specifically
understood that the natural gas division is a consumer of the
electric department within the meaning of this section.
B. Electric Rates - The Commission shall fix such rates for
electricity furnished to consumers as will secure revenues
sufficient to pay all salaries and wages of all officers
and employees in the electric department; to cover the
cost of all material and supplies used in the operation of
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the plant; to cover the cost of all repairs; to cover all
miscellaneous expenses; to pay all interest charges upon
all indebtedness of the Commission created for the purpose
of purchasing, improving or extending the electric system,
to provide for a contribution to the City in lieu of
taxes, and to provide a sinking fund sufficient for the
purpose of paying off such indebtedness at maturity and
establish restricted funds based on aood business
judgement.
C. Natural Gas Rates - The Commission shall fix such rates
for natural gas furnished to consumers as will secure
revenues sufficient to pay all salaries and wages of all
officers and employees in the natural gas division; to
cover the cost of all repairs; to cover all miscellaneous
expenses; to pay all interest charged upon all
indebtedness of the Commission created for the purpose of
purchasing, improving, or extending the natural gas
system, and to provide a sinking fund sufficient for the
purpose of paying off such indebtedness at maturity and
establish restricted funds based on good business
judgement.
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SECTION - 3 ELECTRIC RATES AND REGULATIONS The Commission
shall adopt and amend, from time to time, rules and regulations
pertaining to electric service to consumers and customer relations.
SECTION - 4 NATURAL GAS RULES AND REGULATIONS The Commission
shall adopt and amend, from time to time, rules and regulations
pertaining to natural gas service to consumers and customer
relations.
SECTION - 5
POLICY AS TO
EMPLOYEES The Commission shall
adopt and amend,
from time to
time, rules and regulations in
respect to labor
and employment
policy. In the selection of staff
employees, information shall be
submitted to the Commission prior
to consideration
for employment
by the Commission.
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