09-28-2005 HUCM
Regular Meeting
September 28,2005
Members present: President Craig Lenz; Vice President Donald Walser; Secretary
David Wetterling; Commissioner Paul Ackland; Commissioner Steven Cook; General
Manager Michael Kumm; Attorney Marc Sebora
President Lenz called the meeting to order at 3:00 pm.
Vice President Walser made a motion to approve the minutes of the
August 31, 2005 Regular Meeting with a change to the second page, paragraph two,
bullet six: General funds transfer to City of Hutchinson - reQuested an additional 5%.
Secretary Wetterling seconded the motion and it passed unanimously.
Manager Kumm is meeting with R. W. Beck on October 6, 2005 to discuss the progress
on the cost of service study. They will deliver a presentation at the October
Commissioners meeting.
Manager Kumm will check into the payment of the MAPP Joint Membership Fee being
made to MMUA. Commissioner Ackland asked about the MMUA dues assessment.
Manager Kumm will check if this is a portion of the dues or the annual dues.
Commissioner Ackland asked if the wire transfer to the State of Minnesota was for sales
tax. Manager Kumm will verify if it is for sales tax and report back. Commissioner
Ackland made a motion to ratify the payment of bills in the amount of $3,339,828.70
(detailed listing in payable book). Vice President Walser seconded the motion and it
passed unanimously.
Jo-Max has completed their construction contract and has requested payment.
Changed:
Separated
paragraph.
The increase in revenue from late payment charges is due to the fact that we are now
following policy and charging a $15 processing fee for late payments made after the due
date. Previously we were excusing the fee if it was paid late but paid before we printed
the next month's bill. Aside from following policy, this will also help with our cash flow.
The Tartan Park project is completed and we will recapture those costs with the City
reimbursement. Extra boring was needed on the projects west of Adams Street and
east of Adams Street. Commissioner Ackland made a motion to approve the financial
statement and budget year to date. Secretary Wetterling seconded the motion and it
passed unanimously.
Danna Olson and Marvin Rothfusz were welcomed to the meeting. They represent a
group called Proactive Renewable Energy Action Team (PREACT). They gave a
presentation on renewable and sustainable energy, with emphasis on educating the
community and promoting actions to save energy. Being that they are a new group of
local McLeod County citizens, they are asking HUC for support in promoting clean
renewable energy and getting the word out to our customers as to what they can do to
lower their energy bills. PREACT e-mail (MarvinRothfusz)redfoot32@charter.net
Manager Kumm reported on the natural gas supply. The time diversity model that is in
place, and HUC's locked in base load price will bring savings for both HUC and HUC's
customers. The true cost avoidance will be roughly $2 million dollars or a 40% cost
avoidance. Reducing our commodity costs will benefit our customers as it will be less
cost to them.
Roberta Yates gave a presentation on efforts that are being pursued for the
Conservation Improvement Program. Home Energy Guides are available in the lobby
offering numerous tips on energy conservation. HUC's website offers Inspector Digby's
Energy Conservation Tips and each month there is an energy tip on all customer's utility
bills offering a useful tip ie:
July: Keep your air conditioner condenser free of debris.
August: Wash & dry only full loads of clothes. Line dry when possible.
September: Turn off lights, TV, computer equipment, etc. when not is use.
October: Clean or replace furnace filters regularly.
November: Vacuum the refrigerator coils. Position back coils at least 4" from
real wall.
December: Install aerating low-flow faucets and showerheads.
Other approaches being studied are placing ads in the newspaper offering tips such as
lowering your thermostat in the winter months when you're not at home and in the
evenings when sleeping; or turn up the air conditioner to 780 in the summer; or closing
the registers in rooms that you are not using.
Weatherization programs are also available where we could team up with Heartland
Community Action Agency and the CIP funds could be spent on low-income
households.
In continuing to be visible in the community, we will be participating in the Home Show
in February. About 18% of our customers are on the automatic payment plan and about
11 % on the budget payment plan. We want to promote public relations and we could do
this by offering programmable thermostats with the CIP funds or blankets for hot water
heaters or light bulbs as an incentive to go on the automatic payment or budget
payment plans.
Commissioner Cook suggested a booth at the McLeod County Fair as a viable means
of visibility.
We are sponsoring a program called "My Favorite Book". All first graders in all
Hutchinson's schools will receive one of these books, emphasizing communication and
values. Our sponsorship information is printed inside.
We have approximately $210,000 in CIP funds and although the tree program has been
beneficial in years past, we want to offer new programs that will benefit the community
also.
Manager Kumm informed the Commission Board that there was a misunderstanding
with our meter readers' intentions of reading meters. She does want to continue reading
electric and gas meters, and also wants to read City's water meters. HUC would
develop two contracts: 1) electric and gas meters and 2) water meters. HUC would
administer both contracts at a rate of $.30 per meter. We have discussed this with City
and it would be a great savings for them. Manager Kumm asked to table the approval of
the Meter Reader Labor Contract with AnneMarie Dammann until after we develop the
two contracts and review them with Attorney Sebora They would be brought before the
board at the October meeting for approval. A motion was made by Commissioner Cook
to table the approval of meter reader labor contract with AnneMarie Dammann.
Secretary Wetterling seconded the motion and it passed unanimously.
Division reports:
Business - Jan Sifferath
Still waiting on premium prices for health and dental
Waiting on quotes for reconstruction of the Consolidated Freightway building
Vending machines were installed
Electric - Don Merkins
Steel has arrived for making the pillars for Glencoe's McLeod Sub Station
Working on 2nd feed to HTI
Waiting for staking in the new developments
Em ission testing to start in October
Gas - John Webster
Crews are rebuilding regulators and reliefs at stations
Working on above ground maintenance
We have shipped supplies to Mobile Gas in Alabama for distribution to the
hurricane Katrina victims
Issues are being worked out with landowners on the pipeline
Lowered the distribution main on Golf Course Road
Installing new service lines
Presented public awareness training to emergency response officials in Gibbon
and Ormsby
Condemnation hearings are under way beginning in Martin and Watonwan
Counties
Hearing was held day of commission meeting at the Minnesota Court of Appeals
concerning the PUC's authority to regulate the HUC natural gas pipeline
Legal Update:
None
Old Business
City contribution to be on October's agenda
New Business
None
Vice President Walser made a motion to adjourn at 5:28 pm. Secretary Wetterling
seconded the motion and it passed unanimously.
David Wetterling, Secretary
ATTEST
Craig Lenz, President
�3
Regular Meeting
September 28, 2005
Members present: President Craig Lenz; Vice President Donald Walser; Secretary
David Wetterling; Commissioner Paul Ackland; Commissioner Steven Cook; General
Manager Michael Kumm; Attorney Marc Sebora.
President Lenz called the meeting to order at 3:00 pm.
Vice President Walser made a motion to approve the minutes of the
August 31, 2005 Regular Meeting with a change to the second page, paragraph two,
bullet six: General funds transfer to City of Hutchinson — requested an additional 5 %.
Secretary Wetterling seconded the motion and it passed unanimously.
Manager Kumm is meeting with R. W. Beck on October 6, 2005 to discuss the progress
on the cost of service study. They will deliver a presentation at the October
Commissioners meeting.
Manager Kumm will check into the payment of the MAPP Joint Membership Fee being
made to MMUA. Commissioner Ackland asked about the MMUA dues assessment.
Manager Kumm will check if this is a portion of the dues or the annual dues.
Commissioner Ackland asked if the wire transfer to the State of Minnesota was for sales
tax. Manager Kumm will verify if it is for sales tax and report back. Commissioner
Ackland made a motion to ratify the payment of bills in the amount of $3,339,828.70
(detailed listing in payable book). Vice President Walser seconded the motion and it
passed unanimously.
Changed:
Separated
Jo -Max has completed their construction contract and has requested payment. paragraph.
The increase in revenue from late payment charges is due to the fact that we are now
following policy and charging a $15 processing fee for late payments made after the due
date. Previously we were excusing the fee if it was paid late but paid before we printed
the next month's bill. Aside from following policy, this will also help with our cash flow.
The Tartan Park project is completed and we will recapture those costs with the City
reimbursement. Extra boring was needed on the projects west of Adams Street and
east of Adams Street. Commissioner Ackland made a motion to approve the financial
statement and budget year to date. Secretary Wetterling seconded the motion and it
passed unanimously.
Danna Olson and Marvin Rothfusz were welcomed to the meeting. They represent a
group called Proactive Renewable Energy Action Team (PREACT). They gave a
presentation on renewable and sustainable energy, with emphasis on educating the
community and promoting actions to save energy. Being that they are a new group of
local McLeod County citizens, they are asking HUC for support in promoting clean
renewable energy and getting the word out to our customers as to what they can do to
lower their energy bills. PREACT e -mail (Marvin Rothfusz) redfoot32(a?charter.net
Manager Kumm reported on the natural gas supply. The time diversity model that is in
place, and HUC's locked in base load price will bring savings for both HUC and HUC's
customers. The true cost avoidance will be roughly $2 million dollars or a 40% cost
avoidance. Reducing our commodity costs will benefit our customers as it will be less
cost to them.
Roberta Yates gave a presentation on efforts that are being pursued for the
Conservation Improvement Program. Home Energy Guides are available in the lobby
offering numerous tips on energy conservation. RUC's website offers Inspector Digby's
Energy Conservation Tips and each month there is an energy tip on all customer's utility
bills offering a useful tip ie:
July: Keep your air conditioner condenser free of debris.
August: Wash & dry only full loads of clothes. Line dry when possible.
September: Turn off lights, TV, computer equipment, etc. when not is use.
October: Clean or replace furnace filters regularly.
November: Vacuum the refrigerator coils. Position back coils at least 4" from
real wall.
December: Install aerating low -flow faucets and showerheads.
Other approaches being studied are placing ads in the newspaper offering tips such as
lowering your thermostat in the winter months when you're not at home and in the
evenings when sleeping; or turn up the air conditioner to 780 in the summer; or closing
the registers in rooms that you are not using.
Weatherization programs are also available where we could team up with Heartland
Community Action Agency and the CIP funds could be spent on low- income
households.
In continuing to be visible in the community, we will be participating in the Home Show
in February. About 18% of our customers are on the automatic payment plan and about
11 % on the budget payment plan. We want to promote public relations and we could do
this by offering programmable thermostats with the CIP funds or blankets for hot water
heaters or light bulbs as an incentive to go on the automatic payment or budget
payment plans.
Commissioner Cook suggested a booth at the McLeod County Fair as a viable means
of visibility.
We are sponsoring a program called "My Favorite Book ". All first graders in all
Hutchinson's schools will receive one of these books, emphasizing communication and
values. Our sponsorship information is printed inside.
We have approximately $210,000 in CIP funds and although the tree program has been
beneficial in years past, we want to offer new programs that will benefit the community
also.
Manager Kumm informed the Commission Board that there was a misunderstanding
with our meter readers' intentions of reading meters. She does want to continue reading
electric and gas meters, and also wants to read City's water meters. HUC would
develop two contracts: 1) electric and gas meters. and 2) water meters. HUC would
administer both contracts at a rate of $.30 per meter. We have discussed this with City
and it would be a great savings for them. Manager Kumm asked to table the approval of
the Meter Reader Labor Contract with AnneMarie Dammann until after we develop the
two contracts and review them with Attorney Sebora. They would be brought before the
board at the October meeting for approval. A motion was made by Commissioner Cook
to table the approval of meter reader labor contract with AnneMarie Dammann.
Secretary Wetterling seconded the motion and it passed unanimously.
Division reports:
Business — Jan Sifferath
Still waiting on premium prices for health and dental
Waiting on quotes for reconstruction of the Consolidated Freightway building
Vending machines were installed
Electric — Don Merkins
Steel has arrived for making the pillars for Glencoe's McLeod Sub Station
Working on 2nd feed to HTI
Waiting for staking in the new developments
Emission testing to start in October
Gas — John Webster
Crews are rebuilding regulators and reliefs at stations
Working on above ground maintenance
We have shipped supplies to Mobile Gas in Alabama for distribution to the
hurricane Katrina victims
Issues are being worked out with landowners on the pipeline
Lowered the distribution main on Golf Course Road
Installing new service lines
Presented public awareness training to emergency response officials in Gibbon
and Ormsby
Condemnation hearings are under way beginning in Martin and Watonwan
Counties
Hearing was held day of commission meeting at the Minnesota Court of Appeals
concerning the PUC's authority to regulate the HUC natural gas pipeline
C
Legal Update:
None
Old Business
City contribution to be on October's agenda
New Business
None
Vice President Walser made a motion to adjourn at 5:28 pm. Secretary Wetterling
seconded the motion and it passed unanimously.
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' MARKETING PLAN
2006
1. OBJECTIVE
HUC will promote consumer and industry awareness of energy conservation and
its positive effect on the environment.
A. STRATEGY
1. HUC will promote reducing our customer's consumption of electricity
and natural gas by the efficient use of energy resources.
B. TACTICS
1. Education (Home Show, Pamphlets, Incentives)
2. Low Income /Renter Weatherization Programs
3. Residential /Commercial Weatherization Programs
' II. OBJECTIVE
Build and maintain positive relationships with the public.
A. STRATEGY
1. Improve communication and public relations with the community
2. Inform the public of our policies, activities, programs and
accomplishments
3. Understand the attitudes and concerns of the customer
B. TACTICS
1. Education (Home Show, Presentations, Articles)
2. Encourage Residents to Sign On to Budget and Auto Pay Programs
3. Sponsor "My Favorite Book" Program
G:Drive,CIP, Marketing Plan 9/2006