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12-22-2006 HUCM Regular Meeting December 22,2006 Members present: President Craig Lenz; Vice President Don Walser; Secretary David Wetterling; Commissioner Steven Cook; Commissioner Dwight Bordson; General Manager Michael Kumm; Attorney Marc Sebora. President Lenz called the meeting to order at 1 :00 pm. Commissioner Cook requested changes in the minutes of the November 29, 2006 regular meeting. Changes are on the second page: . paragraph four, fifth and sixth sentences, change to: 'Commissioner Cook asked if we received wind and hydro power from MRES. GM Kumm responded that we could buy wind but we are not in the right geographical region'. Eliminate the sentence: "After discussion Commissioner Cook feels he has a better understanding of the Big Stone II Project". . paragraph seven, third sentence, change to: 'City will be asked to adopt a similar resolution containing the same transfer formula.' Vice President Walser made a motion to approve the minutes of the November 29, 2006 regular meeting noting the requested changes. Secretary Wetterling seconded the motion and it passed unanimously. Secretary Wetterling made a motion to approve the minutes of the December 14, 2006 special meeting. Commissioner Bordson seconded the motion and it passed unanimously. Commissioner Bordson asked about the payment to City of Hutchinson - IT Support. Jan Sifferath explained this is a quarterly charge and it pays for Jackie Penke's salary. He also asked about the payment to David, Kristi, Mark Ahlquist - Easement. GM Kumm said this is part of the natural gas pipeline easement payment and that there are only three parcels left to take care of. And he asked about the payment to Slurpy's Backhoe Service - Land Leveling. John Webster explained this is for leveling the land after the natural gas pipeline was installed. Secretary Wetterling asked about the payment to Crow River Landscaping - Sod. Dave Hunstad reported that we hired them to repair/seed customers back yards after we had done digging to install underground service. Commissioner Cook asked about the payment to Process & Technology Solution - Programming Services. Jan said this is for our WINSTS and purchasing software. He also asked Jan what class she was taking regarding the payment to DeVry Inc. Jan explained the class is for Human Resource Management and she hopes to graduate a year from now. Vice President Walser asked about the payment to Celeritas Works LLC - CAER Updates. John explained this is for emergency response training on the natural gas side. He also asked about the payment to Apex Environmental Inc - Site Assessment Report Prep. Steve Lancaster explained this is for underground testing where our underground fuel tanks used to be. President Lenz asked about the CIP funds. Approximately $27,000 is what's left over from the program. It will be used at plant #1 to retrofit lighting to make it more energy efficient. It was reported that no more money is going out to customers. Secretary Wetterling made a motion to ratify the payment of bills in the amount of $2,702,149.43 (detailed listing in payable book). Commissioner Cook seconded the motion and it passed unanimously. GM Kumm presented the financial statements/budget year-to-date. The cash flow is doing extremely well. The benchmarks are very close to what was budgeted. Secretary Wetterling made a motion to approve financial statements/budget year-to-date. Vice President Walser seconded the motion and it passed unanimously. Brenda Ewing, Human Resource Manager, presented the combined HUC/City safety and health program. This has been adopted by the City Council at its November City Council Meeting and now needs to be approved by HUC. Attorney Sebora will incorporate a contractual safety compliance agreement into the program in order to meet all of OSHA's requirements, if we hire contractors to do work on our projects. After discussion, Commissioner Cook made a motion to approve the combined HUC/City Safety and Health Program. Commissioner Bordson seconded the motion and it passed unanimously. The 2007 budget was presented for approval. Secretary Wetterling made a motion to approve the 2007 budget. Commissioner Bordson seconded the motion and is passed unanimously. GM Kumm reported on the financial and operational benchmarks. Dave Hunstad and Dan Lang helped write reliability measures so MMUA could develop the software for APPA. The software reports outages greater than one minute (not planned outages). SAIDI = System Average Interruption Duration Index (Average interruption duration for customers served during a specific time peiod.) CAIDI = Customer Average Interruption Duration Index (Average length of an interruption, weighted by the number of customers affected, for customers interrupted during a specific time period.) SAIFI = System Average Interruption Frequency Index (Average number of times that a customer is interrupted during a specific time period.) President Lenz asked if it can report on the reasons for the outages. Dave said it can. Commissioner Cook asked if there are measures in place to correct the problems for the outages. Dave reported that this software monitors outages and collects data which tells us where improvements need to be made. Commissioner Cook asked about the return on net assets. GM Kumm reported that this benchmark reflects if rates need to be adjusted. The current ratio shows we are building cash. The debt to total assets shows us the trend is going in the correct direction. The times interest earned measures the payment of interest on our debt. The total net income is going up and possibly the rate stabilization fund will be full. If we can keep the power cost adjustment clause and the fuel cost adjustment clause at zero, we might be able to eliminate the fund. John Webster presented the time diversity model for purchasing natural gas. He reported we want to levelize the price, not necessarily beat it and he is very pleased with how well the model is working. GM Kumm reported that we do have storage on the pipeline and if gas is cheap enough, we can buy extra and store it or sell if off for a profit. President Lenz asked how much can be stored. John explained that 27,000 Dth can be stored at the interconnect pipe with Northern Border. If BP makes gas and stores it on our pipe, we get 50% when it's sold. This is in the new marketing contract. Requisition #002223 was presented for approval. This is 15 padmounted transformers for inventory for projects in 2007. Commissioner Cook made a motion to approve requisition #002223 to B & B Transformer, Inc. for 15 padmounted transformers. Commissioner Bordson seconded the motion and it passed unanimously. John Webster presented the 3M Firm Natural Gas Contract for approval. HUC has been working on this with 3M for many months. Commissioner Cook asked what was in place before this contract. We just had an agreement to keep it as is, even though there was no written contract in place. Once this is approved by the Commission board it will be forwarded to 3M. They will sign it, then it'll come back to the Commission for our signature. Vice President Walser made a motion to approve the 3M firm natural gas contract. Secretary Wetterling seconded the motion and it passed unanimously. President Lenz asked how long the contract is for. John explained it's good for one year and they had talked about an automatic extension, but because it took so long to arrive at this contract, we didn't want to experience the same length of time to add language. President Lenz asked that next time we consider a roll-over/extension clause as well as an escape clause. At the last commission meeting, Commissioner Cook mentioned that he has conflicts with the date of our regular commissioner's meeting. GM Kumm looked into whether or not there are any implications with the financials if we changed the meeting to the first Wednesday of the month; there are not. The payment of bills are ratified at the meetings. President Lenz asked if there would be a problem with the election of officers if we changed the date. That is not a problem either. John Webster explained that the bid opening for 'Installation and Retirement of Natural Gas Distribution Lines' is scheduled for January 3, 2007 with approval going before the board at it's regularly scheduled meeting on January 31, 2007. If there's no meeting in January, it will interfere with the progress of the work on the Highway 7 project. Commissioner Cook made a motion to change the regular monthly commission meetings to the first Wednesday of the month at 3:00 p.m. starting with the March meeting, with no meeting in February. Commissioner Bordson seconded the motion and it passed unanimously. Division reports Gas - John Webster . Requisition #002317 presented for approval. Relocate line, remove plastic pipe and install steel pipe instead of using temporary plastic pipe on top of ground while reconstructing Highway 7. Secretary Wetterling made a motion to approve requisition #002317 to Chicago Tube & Iron for 1,920' of steel pipe. Commissioner Bordson seconded the motion and it passed unanimously. . Installed relief valves on the pipeline in Trimont, MN Business - Jan Sifferath . Auditors will be here the last week in January. . Asked for authorization to allow GM Kumm to sign contract with AJ. Galagher for the business insurance, when the paperwork arrives. A motion was made by Commissioner Cook authorizing GM Kumm to sign the business insurance forms. Secretary Wetterling seconded the motion and it passed unanimously. . President Lenz asked about the cost our auditors charge. Jan said it's similar to last year - less than $15,000. Commissioner Cook asked if using the City's firm would be cheaper. President Lenz asked if we had gone out for bids. GM Kumm reported that we did not go out for bids. President Lenz suggested going out for bids next year and that a fresh pair of eyes sometimes is needed. Electric - Steve Lancaster . The lineman who was hired and in his 6-month probation period, has been let go, we have that position open again. President Lenz and Vice President Walser have completed GM Kumm's yearly review. President Lenz mentioned that he's spent a great deal of time with Kumm and Lenz feels Kumm has done an exceptionally good job. It's been a real eye opener to see how much Kumm has accomplished since his arrival to HUC. A copy of the performance review was presented to the Commissioners for their signatures. GM Kumm said any credit should be given to the directors and the employees for making it so easy for him to accomplish the tasks. Commissioner Cook asked how Kumm's raise is related to the HUC compensation plan. President Lenz explained that the review for the general manager deviates from the current compensation plan. Vice President Walser added that published wage information from other cities was taken into consideration when evaluating the general managers' salary. Commissioner Cook asked if compared to the employees increase using the current compensation plan, would GM Kumm get more of an increase. President Lenz explained that he would not. Commissioner Cook asked if it's always been the President and Vice President who have done the reviews. Could more members be included even if it meant calling a closed/private meeting. Secretary Wetterling made a motion to approve the proposed salary increase. Commissioner Bordson seconded the motion and it passed unanimously. Commissioner Cook has some questions on the performance review. Legal Update: Attorney Sebora reported that City Council approved the formula for the transfer of funds. Old Business None New Business . Agenda for Joint Meeting on January 9, 2007: GM Kumm said Commissioner Cook sent an e-mail adding eight more items to the agenda. Commissioner Cook said he ran it by Gary Plotz and they thought it would be good information for the other council members. GM Kumm asked what he wanted discussed. Commissioner Cook explained just an update on the items would be informative. Commissioner Cook made a motion to approve the agenda for the joint meeting. Commissioner Bordson seconded the motion and it passed unanimously. . Commissioner Cook wants a better understanding of the approved health insurance plan. He feels it should be the same for both plans and asks for feedback from the other commissioners. Commissioner Cook feels that 20% of the total monthly premiums should be paid by all employees, not just the union employees. Vice President Walser explained that there are two categories of employees and we shouldn't expect the benefits to be the same, since expectations of staff are substantially different than that of the members in the bargaining unit. Commissioner Cook made a motion for non-union employees to pay 20% of the total monthly premiums and amend the approved contract. Motion dies for lack of a second. Secretary Wetterling made a motion to adjourn the meeting at 3:18 p.m. Commissioner Bordson seconded the motion and it passed unanimously. Secretary, ATTEST President, (70 Regular Meeting December 22, 2006 Members present: President Craig Lenz; Vice President Don Walser; Secretary David Wetterling; Commissioner Steven Cook; Commissioner Dwight Bordson; General Manager Michael Kumm; Attorney Marc Sebora. President Lenz called the meeting to order at 1:00 pm. Commissioner Cook requested changes in the minutes of the November 29, 2006 regular meeting. Changes are on the second page: • paragraph four, fifth and sixth sentences, change to: 'Commissioner Cook asked if we received wind and hydro power from MRES. GM Kumm responded that we could buy wind but we are not in the right geographical region'. Eliminate the sentence: "After discussion Commissioner Cook feels he has a better understanding of the Big Stone II Project ". • paragraph seven, third sentence, change to: 'City will be asked to adopt a similar resolution containing the same transfer formula.' Vice President Walser made a motion to approve the minutes of the November 29, 2006 regular meeting noting the requested changes. Secretary Wetterling seconded the motion and it passed unanimously. Secretary Wetterling made a motion to approve the minutes of the December 14, 2006 special meeting. Commissioner Bordson seconded the motion and it passed unanimously. Commissioner Bordson asked about the payment to City of Hutchinson — IT Support. Jan Sifferath explained this is a quarterly charge and it pays for Jackie Penke's salary. He also asked about the payment to David, Kristi, Mark Ahlquist — Easement. GM Kumm said this is part of the natural gas pipeline easement payment and that there are only three parcels left to take care of. And he asked about the payment to Slurpy's Backhoe Service — Land Leveling. John Webster explained this is for leveling the land after the natural gas pipeline was installed. Secretary Wetterling asked about the payment to Crow River Landscaping — Sod. Dave Hunstad reported that we hired them to repair /seed customers back yards after we had done digging to install underground service. Commissioner Cook asked about the payment to Process & Technology Solution — Programming Services. Jan said this is for our WINSTS and purchasing software. He also asked Jan what class she was taking regarding the payment to DeVry Inc. Jan explained the class is for Human Resource Management and she hopes to graduate a year from now. �J Vice President Walser asked about the payment to Celeritas Works LLC — CAER Updates. John explained this is for emergency response training on the natural gas side. He also asked about the payment to Apex Environmental Inc — Site Assessment Report Prep. Steve Lancaster explained this is for underground testing where our underground fuel tanks used to be. President Lenz asked about the CIP funds. Approximately $27,000 is what's left over from the program. It will be used at plant #1 to retrofit lighting to make it more energy efficient. It was reported that no more money is going out to customers. Secretary Wetterling made a motion to ratify the payment of bills in the amount of $2,702,149.43 (detailed listing in payable book). Commissioner Cook seconded the motion and it passed unanimously. GM Kumm presented the financial statements /budget year -to -date. The cash flow is doing extremely well. The benchmarks are very close to what was budgeted. Secretary Wetterling made a motion to approve financial statements /budget year -to -date. Vice President Walser seconded the motion and it passed unanimously. Brenda Ewing, Human Resource Manager, presented the combined HUC /City safety and health program. This has been adopted by the City Council at its November City Council Meeting and now needs to be approved by HUC. Attorney Sebora will incorporate a contractual safety compliance agreement into the program in order to meet all of OSHA's requirements, if we hire contractors to do work on our projects. After discussion, Commissioner Cook made a motion to approve the combined HUC /City Safety and Health Program. Commissioner Bordson seconded the motion and it passed unanimously. The 2007 budget was presented for approval. Secretary Wetterling made a motion to approve the 2007 budget. Commissioner Bordson seconded the motion and is passed unanimously. GM Kumm reported on the financial and operational benchmarks. Dave Hunstad and Dan Lang helped write reliability measures so MMUA could develop the software for APPA. The software reports outages greater than one minute (not planned outages). SAIDI = System Average Interruption Duration Index (Average interruption duration for customers served during a specific time peiod.) CAIDI = Customer Average Interruption Duration Index (Average length of an interruption, weighted by the number of customers affected, for customers interrupted during a specific time period.) SAIFI = System Average Interruption Frequency Index (Average number of times that a customer is interrupted during a specific time period.) l�J President Lenz asked if it can report on the reasons for the outages. Dave said it can. Commissioner Cook asked if there are measures in place to correct the problems for the outages. Dave reported that this software monitors outages and collects data which tells us where improvements need to be made. Commissioner Cook asked about the return on net assets. GM Kumm reported that this benchmark reflects if rates need to be adjusted. The current ratio shows we are building cash. The debt to total assets shows us the trend is going in the correct direction. The times interest earned measures the payment of interest on our debt. The total net income is going up and possibly the rate stabilization fund will be full. If we can keep the power cost adjustment clause and the fuel cost adjustment clause at zero, we might be able to eliminate the fund. John Webster presented the time diversity model for purchasing natural gas. He reported we want to levelize the price, not necessarily beat it and he is very pleased with how well the model is working. GM Kumm reported that we do have storage on the pipeline and if gas is cheap enough, we can buy extra and store it or sell if off for a profit. President Lenz asked how much can be stored. John explained that 27,000 Dth can be stored at the interconnect pipe with Northern Border. If BP makes gas and stores it on our pipe, we get 50% when it's sold. This is in the new marketing contract. Requisition #002223 was presented for approval. This is 15 padmounted transformers for inventory for projects in 2007. Commissioner Cook made a motion to approve requisition #002223 to B & B Transformer, Inc. for 15 padmounted transformers. Commissioner Bordson seconded the motion and it passed unanimously. John Webster presented the 3M Firm Natural Gas Contract for approval. HUC has been working on this with 3M for many months. Commissioner Cook asked what was in place before this contract. We just had an agreement to keep it as is, even though there was no written contract in place. Once this is approved by the Commission board it will be forwarded to 3M. They will sign it, then it'll come back to the Commission for our signature. Vice President Walser made a motion to approve the 3M firm natural gas contract. Secretary Wetterling seconded the motion and it passed unanimously. President Lenz asked how long the contract is for. John explained it's good for one year and they had talked about an automatic extension, but because it took so long to arrive at this contract, we didn't want to experience the same length of time to add language. President Lenz asked that next time we consider a roll- over /extension clause as well as an escape clause. At the last commission meeting, Commissioner Cook mentioned that he has conflicts with the date of our regular commissioner's meeting. GM Kumm looked into whether or not there are any implications with the financials if we changed the meeting to the first Wednesday of the month; there are not. The payment of bills are ratified at the meetings. President Lenz asked if there would be a problem with the election of officers if we changed the date. That is not a problem either. John Webster explained that the �a J) bid opening for 'Installation and Retirement of Natural Gas Distribution Lines' is scheduled for January 3, 2007 with approval going before the board at it's regularly scheduled meeting on January 31, 2007. If there's no meeting in January, it will interfere with the progress of the work on the Highway 7 project. Commissioner Cook made a motion to change the regular monthly commission meetings to the first Wednesday of the month at 3:00 p.m. starting with the March meeting, with no meeting in February. Commissioner Bordson seconded the motion and it passed unanimously. Division reports Gas — John Webster • Requisition #002317 presented for approval. Relocate line, remove plastic pipe and install steel pipe instead of using temporary plastic pipe on top of ground while reconstructing Highway 7. Secretary Wetterling made a motion to approve requisition #002317 to Chicago Tube & Iron for 1,920' of steel pipe. Commissioner Bordson seconded the motion and it passed unanimously. • Installed relief valves on the pipeline in Trimont, MN Business — Jan Sifferath • Auditors will be here the last week in January. • Asked for authorization to allow GM Kumm to sign contract with A.J. Galagher for the business insurance, when the paperwork arrives. A motion was made by Commissioner Cook authorizing GM Kumm to sign the business insurance forms. Secretary Wetterling seconded the motion and it passed unanimously. • President Lenz asked about the cost our auditors charge. Jan said it's similar to last year — less than $15,000. Commissioner Cook asked if using the City's firm would be cheaper. President Lenz asked if we had gone out for bids. GM Kumm reported that we did not go out for bids. President Lenz suggested going out for bids next year and that a fresh pair of eyes sometimes is needed. Electric — Steve Lancaster • The lineman who was hired and in his 6 -month probation period, has been let go, we have that position open again. President Lenz and Vice President Walser have completed GM Kumm's yearly review. President Lenz mentioned that he's spent a great deal of time with Kumm and Lenz feels Kumm has done an exceptionally good job. It's been a real eye opener to see how much Kumm has accomplished since his arrival to HUC. A copy of the performance review was presented to the Commissioners for their signatures. GM Kumm said any credit should be given to the directors and the employees for making it so easy for him to accomplish the tasks. Commissioner Cook asked how Kumm's raise is related to the HUC compensation plan. President Lenz explained that the review for the general manager deviates from the current compensation plan. Vice President Walser added that published wage information from other cities was taken into consideration when evaluating the general managers' salary. Commissioner Cook asked if compared to the employees increase using the current compensation plan, would GM Kumm get more of an increase. President Lenz explained that he would not. Commissioner Cook asked if it's always been the President and Vice President who have done the reviews. Could more members be included even if it meant calling a closed /private meeting. Secretary Wetterling made a motion to approve the proposed salary increase. Commissioner Bordson seconded the motion and it passed unanimously. Commissioner Cook has some questions on the performance review. Legal Update: Attorney Sebora reported that City Council approved the formula for the transfer of funds. Old Business None New Business • Agenda for Joint Meeting on January 9, 2007: GM Kumm said Commissioner Cook sent an e-mail adding eight more items to the agenda. Commissioner Cook said he ran it by Gary Plotz and they thought it would be good information for the other council members. GM Kumm asked what he wanted discussed. Commissioner Cook explained just an update on the items would be informative. Commissioner Cook made a motion to approve the agenda for the joint meeting. Commissioner Bordson seconded the motion and it passed unanimously. • Commissioner Cook wants a better understanding of the approved health insurance plan. He feels it should be the same for both plans and asks for feedback from the other commissioners. Commissioner Cook feels that 20% of the total monthly premiums should be paid by all employees, not just the union employees. Vice President Walser explained that there are two categories of employees and we shouldn't expect the benefits to be the same, since expectations of staff are substantially different than that of the members in the bargaining unit. Commissioner Cook made a motion for non -union employees to pay 20% of the total monthly premiums and amend the approved contract. Motion dies for lack of a second. I� 9C) Secretary Wetterling made a motion to adjourn the meting at 3:18 p.m. Commissioner Bordson seconded the motion and it passed unanimopsiy. n a 'd Wetterling, Secretary ATTEST aig Le r nt 1 Memorandum TO: Hutchinson Utilities ommission FROM: Brenda K. Ewing, H n Resources Director RE: City of Hutchinson Hutchinson Utilities Commission Safety and Health Program Document DATE: November 20, 2006 Attached is the general Safety and Health Program document related to the combined City of Hutchinson and Hutchinson Utilities Commission Employee Safety Program. The document identifies the basic components of the Safety Program. This is the first in a number of safety program related documents that will be presented to the City Council and Hutchinson Utilities Commission for review and adoption. As a point of information, the Hutchinson City Council did adopt the program document at its regular meeting on November 14, 2006. Your consideration and adoption of the document is requested. If you have any questions, I will be attending the November 29 Hutchinson Utilities Commission meeting. Encl. r SAFETY AND HEALTH PROGRAM City of Hutchinson Hutchinson Utilities I Commission November /December 2006 OSHA /Safety Assistance 9/04 1`1 Model Program - 1 City of Hutchinson & Hutchinson Utilities Commission Endorsement of Safety and Health Program Department(s) Applicable Approving Authority Date Approved City Center (Admin., Building Enf., EDA, Engineering, Finance, IT, Legal, Motor Vehicle, Planning) Hutchinson City Council November 2006 Creek Side Compost Hutchinson City Council November 2006 Fire Hutchinson City Council November 2006 Liquor Hutch Hutchinson City Council November 2006 PRCE Hutchinson City Council November 2006 Police Hutchinson City Council November 2006 Public Works Hutchinson City Council November 2006 Water & Wastewater Hutchinson City Council November 2006 HUC (Admin., Business, Accounts) Hutchinson Utilities Commission December 2006 Electric Division Hutchinson Utilities Commission December 2006 Natural Gas Division Hutchinson Utilities Commission December 2006 Production Division Hutchinson Utilities Commission December 2006 LL:mc OSHA/Safety Assistance 9/04 Model Program - � IFICAP1 City of Hutchinson & Hutchinson Utilities Commission Approval of Safety and Health Program cu7s OSHA/Safety Assistance 9/04 /// RA16111 18 Model Program - / / / / (, _Q Steven W. Cook, Mayor Gary D. Plotz, City Administrator LCra,E�,, Hui- n H#ii' ' s Commission President Michael Kumm, General Manager cu7s OSHA/Safety Assistance 9/04 /// RA16111 18 Model Program - / / / / (, I VISION STATEMENT The City of Hutchinson Safety Committee will provide a forum for participation for all City employees. The personal safety and health of each City employee and the public is of primary importance and the prevention of occupationally induced injuries and illnesses is our priority. CL:mc OSHA/Safety Assistance 9/04 Model Program - Niivrf 1 MISSION STATEMENT This Committee, with the support of all employees and elected and appointed officials, is committed to providing a safe work environment and to strive for zero accidents throughout the workplace through policies, training, education and communication. City of Hutchinson & Hutchinson Utilities Commission Lu7sOSHA/Safety Assistance 9(04 //�//��/11I,I/, Model Program - RI VIR �I Commitment "To provide each and every employee with a safe and healthy place of employment." Responsibilities The City and Hutchinson Utilities shall: 1. Provide visible and financial support to the safety and health program. 2. Establish and communicate those policies, programs, procedures, and practices necessary to protect employee safety and health. 3. Identify and communicate safety and health related goals and objectives. 4. Provide human and material resources necessary to implement and manage safety and health related policies, programs, procedures, goals, and objectives. 5 Assign accountability for the implementation of safety and health related policies, programs, procedures, goals, and objectives. 6. Ensure that managers and supervisors observe all safety and health related policies and procedures. T� OSHA/Safety Assistance 9/04 ,j /Ul /I.n Model Program V�2VVIN Membership and Rules Order 1. The safety committee shall consist of: • An employee from each work unit (department). • A first -line supervisor. • A member of upper management. • A non - voting technical advisor, as required. 2. Safety committee members shall serve indefinite terms. • Employee representatives shall be appointed /elected by their peers. Upon reorganization, employees shall be given the opportunity to request to serve on the committee. • First -line supervisors shall rotate terms on the safety committee. 3. The safety committee shall elect a chair person, a vice chair person, and secretary. 4. The safety committee shall establish rules of order. 5. The safety committee shall establish and post goals and objectives. 6. The safety committee shall hold monthly meetings. • Meeting dates and agendas shall be posted in advance. 7. The safety committee secretary shall take and post meeting minutes. 8. Safety committee minutes shall be maintained on file at City Center. T �{ OSHA/Safety Assistance 9/04 /J��//� /�;I, I� 7 Model Program - / INGI FF1I1 C' 11 �J Implementation Tools The safety committee shall: 1. Meet (and conduct associated functions) during normal working hours with employees in pay status. 2. Be allocated adequate and appropriate funds per year for operating expenses and completion of stated goals and objectives. 3. Be authorized to spend budgeted funds on safety and health related improvements, with City /HUC approval. Accountability The safety committee shall prepare an annual report. The report shall be submitted to the City and Hutchinson Utilities Commission and be posted for employee review. The report shall include: 1. A summary of progress made in meeting stated goals and objectives. 2. An analysis of accidents and injuries (including close - calls) that identifies recurrent hazards and means of prevention. 3. An analysis of safety inspections that identifies recurrent hazards and means of prevention. 4. Specific recommendations for the elimination of work place safety and health hazards. 5. Goals and objectives for the coming year. LC OSHA/Safety Assistance 9/04 Model Program - N NivrIC COMPLIANCE POLICY `All personnel shall perform assigned work in accordance with established safety and health related policies, procedures, and work practices. Failure to observe safety and health related policies shall result in disciplinary actions as per established polices and agreements. " CT �/( OSHA/Safety Assistance 9/04 7 7 Model Program - 1 COMPLIANCE POLICY "Work place safety requires a team effort and is a shared responsibility. All personnel shall be required to perform assigned work in accordance with established safety and health related policies, procedures, and work practices. Compliance with safety and .health related policies, procedures, and work practices shall be assessed during annual performance reviews and shall be a factor in promotions and the assignment of other benefits. Serious and /or recurrent violations of established safety and health related policies, procedures, and work practices shall result in disciplinary action up to and including termination." LMC �y OSHA/Safety Assistance 9/04 Model Program - mill, 796IFF& 111111F. 1 r- 1. Personal Exposure Monitoring Personal exposure monitoring shall be conducted to evaluate employee exposure to work place hazards (e.g. noise and airborne contaminates) as required by applicable regulations and work place hazards. Form. SP -7 (or an equivalent) shall be used to record the results of personal exposure monitoring. The employee with whom personal exposure monitoring was conducted shall be informed of the results as required by applicable regulations. • All affected managers, supervisors, and employees shall also be informed of the results of personal exposure monitoring in accordance with employee confide ^tia!Ity restrictions. Human Resources shall maintain all employee personal exposure records. Employees shall have access to their exposure records, and upon request said records shall be released to the employee's personal physician. Said records shall also be released to the employee's designated representative in accordance with applicable OSHA restrictions and procedures. 2. Occupational Medicine Results from the occupational medicine program shall be used to evaluate any potential adverse health effects from employee exposure to harmful work environments and /or agents. Said determinations shall be made by the occupational medicine physician and communicated to the City and Hutchinson Utilities Commission in accordance with restrictions imposed by patient/physician confidentiality. Hazard assessments shall be conducted by a qualified individual (e.g. a person who has, by extensive knowledge, training, and experience, successfully demonstrated the ability to solve or resolve problems relating to the subject matter, the work, or project) and shall directly involve work unit supervisors and employees. The results of hazard assessments shall be communicated to affected managers, supervisors, and employees and the safety committee. LC OSHA/Safety Assistance 9/04 Model Program - N, 15VIVII &I I HAZARD ELIMINATION /CONTROL Policy Where practical and feasible safety and health hazards shall be eliminated rather than controlled. Implementation Tools Four methods shall be used to correct work .place safety and health hazards. Hazard Elimination When practical and feasible, work place safety and health hazards shall be eliminated by changing processes, materials, and /or procedures in lieu of other control measures. 2. Engineering Controls Effective engineering controls shall be the preferred method to control safety and health hazards that can not be eliminated by changing processes, materials, and /or procedures. Engineering controls 1 implemented by the City and Hutchinson Utilities Commission include, but i may not be limited to: • Ventilation and exhaust. • Guards and barricades. • Installation of sound absorbing materials. • Interlocks and other safety devices. i • Installation of enclosures /devices that isolate employees from hazards. • Redesigning of work stations /areas. �j�/( OSHA/Safety Assistance 9/04 /��1/1/�,I� { 7 Model Program - N'PrIVI/1 3. Administrative Controls Administrative controls shall be used to control work place safety and health hazards when appropriate and feasible. Administrative controls implemented by the City and Hutchinson Utilities Commission include, but may not be limited to: • Modifying work schedules to reduce employee exposure to toxic materials and /or hot environments. • Implementing safety and health related policies, procedures, and work practices, including OSHA required safety and health programs. Where applicable, OSHA required safety and health programs implemented by the City and Hutchinson Utilities Commission include, but may not be limited to: Hazard Communication Program. Personal Protective Equipment Procedures. Respiratory Protection Program. Hearing Conservation Program. Hazardous Energy Control (Lockout/Tagout) Program. Permit - Required Confined Spaces Program. �. Fire Prevention /Emergency Action Plan. Infection Control Plan. II I LusOSHA/Safety Assistance 9/04 Model Program - 4 • Providing employees with, information and training ap, required by applicable regulations, work place hazards, and employee job duties. Employee information and training includes, but may not be limited to: Posted signs that warn employees of work place safety and health hazards. Material Safety Data Sheets (MSDS) available for hazardous chemicals to which employees may be exposed. =:> New employee safety training and instruction. In service training of existing employees. Job briefings. => Toolbox and tailgate safety talks. Personal Protective Equipment When safety and health hazards can not be eliminated or controlled by other means, employees will be provided with and required to wear suitable personal protective equipment. Personnel protective equipment including, but not limited to, hardhats, protective eye wear, gloves, and protective footwear shall be selected, inspected, used, and cared -for in accordance with applicable regulations and the manufacture's instructions. Personal protective equipment provided to employees includes, but may not be limited to, • Safety goggles • Gloves • Ear plugs • Hard hats • Chaps • Reflective vests Employees shall be responsible for the proper inspection, use, and maintenance of assigned personal protective equipment. OSHA/Safety Assistance 9/04 h� Model Program - i L D FACILITY MAINTENANCE Policy Scheduled maintenance shall be used so far as practical and feasible to insure the safety, reliability, and availability of structures, equipment, and vehicles. Implementation Tools Facility Maintenance Structures, equipment, and vehicles shall be inspected and maintained in accordance with applicable regulations, codes, and manufacturer's instructions. 1 It is the goal of the City and Hutchinson Utilities Commission to maintain structures, equipment, and vehicles through scheduled .and planned maintenance. To facilitate planned maintenance and the reporting of items in need of repair the City and Hutchinson Utilities Commission have established work order systems. I' All personnel shall use the systems to report items in need of maintenance or repair. Maintenance and inspection records shall be maintained on file as require by applicable regulations. I All replacement equipment and parts shall meet or exceed OM (original manufacture's) specifications. 2. Housekeeping Maintaining a clean and sanitary work place is a shared responsibility and requires a team effort. To accomplish this goal, housekeeping procedures and assignments have been established. Housekeeping procedures and assignments shall be posted at all City and Hutchinson Utilities Commission work locations. L C OSHA/Safety Assistance 9/04 Model Program - .fAffIgRy ACCIDENT INVESTIGATION AND RECORD ANALYSIS Policy Accidents and injuries can reoccur unless root causes are identified and corrected. All accidents and 'injuries (including close - calls) shall be investigated to identify root cause and appropriate corrective measures. Implementation Tools 1. Records Management The city shall maintain and periodically review the following records. Record Maintained By /Location Employee Personal Exposure Records Human Resources — city center & HUC office Employee Medical Records Human Resources — city center & HUC Office Employee Training Records Human Resources -- city center Reports Of Accidents /Injuries Human Resources - city Center & HUC Office OSHA 300 log Human Resources - city center & HUC office Safety Inspection Reports /Audits Human Resources - city center Accident Investigations Human Resources - City center Canceled Confined Space Permits Affected Departments i Lockout/Tagout Work Plans Affected Departments Lockout/Tagout Inspections Affected Departments Maintenance Records Affected Departments L�1 OSHA/Safety Assistance 9/04 //////��///1 /r Is C Model Program - /I////YI/4 2. Reporting of Accidents and Close -calls Employees are required to report all accidents and injuries (including close - calls or near accidents) to their work unit supervisor. OSHA recordable injuries shall be reported to Human Resources. Human Resources shall be responsible for reporting and recording OSHA recordable injuries (including the processing of workers' compensation claims and compilation of the OSHA 300 log) in accordance with applicable regulations. It shall be the responsibility of the City Administrator, HUC General Manager, and /or the Human Resources Director to report fatalities and accidents, which, result in the hospitalization of three (3) or more - employees, to the nearest OSHA office within 8 hours. 3. Accident/injury Investigation Work unit supervisors shall be responsible for promptly investigating all accidents and injuries (including close - calls /near accidents) to identify root cause and appropriate corrective actions. Figure 2 may be used to provide general guidance for determining root cause and appropriate corrective actions. Work unit supervisors shall communicate the results of all investigations to p I, affected managers, supervisors, employees, and the safety committee. 4. Analysis. of Accidents and Injuries i The safety committee shall record and analyze information and statistics ol accidents and injuries (including close - calls /near accidents) to identify recurrent hazards The safety committee shall communicate it's analysis (including any recommendations) to the city, supervisors, and employees. C7T�-{ OSHA/Safety Assistance 9/04 /��I! /I �� a l.. Model Program - •��„AVyl ode. "� �y Policy OCCUPATIONAL MEDICINE , Employee health and well being shall be monitored through an occupational medicine program. Results of the program shall be used to determine employee fitness for duty and to identify and evaluate any medical effects resulting from work place safety and health hazards. Implementation Tools The Hutchinson Medical Center has been designated as the primary facility to provide occupational medicine services -to the City of Hutchinson and Hutchins.-M. Utilities Commission To facilitate an effective occupational medicine program, the City and HUC shall provide Hutchinson Medical Center with information about work place safety and health hazards, employee job duties, and applicable regulations. As required by work place safety and health hazards and applicable regulations, Hutchinson Medical Center shall perform initial and periodic medical examinations and tests to evaluate employee health and fitness for duty. Hutchinson Medical Center and /or Human Resources shall communicate the results of medical procedures and tests to the employees. In accordance with physician /patient confidentiality restrictions, Human Resources shall communicate pertinent employee medical information to employees and only those other individuals who have an appropriate reason to know or have legal access to the information. The City and HUC shall maintain applicable employee medical records. Employees shall have access to their medical records, and upon request, said records shall be released to the employee's personal physician. Said records shall also be released to the employee's designated representative in accordance with applicable OSHA restrictions and procedures. OSHA/Safety Assistance 9/04��V; l�ll� Model Program - r -7 CONTRACTOR SAFETY Policy Qualified Contractors It is the policy of the City and Hutchinson Utilities Commission to retain only qualified contractors that have a demonstrable record'of employee safety and health and regulatory compliance. Contractor Duties The contractor shall be responsible for initiating, maintaining, and supervising safety and health related policies, programs, and work practices in connection with the performance of contractual work. The contractor's safety and health program shall be in compliance with all applicable regulations and shall provide a level of employee protection that is equal to or greater than safety and health related .policies, procedures, and work practices implemented by the City and Hutchinson Utilities Commission The contractor shall be responsible for furnishing all safety and health related equipment necessary for the completion of contracted work. Duties to Subcontractors The contractor shall be responsible for communicating safety and health related information to subcontractors and shall ensure that subcontractors initiate, maintain, and supervise safety and health related polices, programs, and work practices while performing subcontracted work. i i Imminent Danger The City and Hutchinson Utilities Commission reserves that right to suspend contracted work, if said work exposes the employees of either city or HUC or the contractor to imminent danger. Lu7sOSHA/Safety Assistance 9/04 /f�/I/1 /I �G Model Program - �V�Vy� Implementation Tools Exchange of Safety and Health Related Information Prior to the beginning of contracted work, the project manager /inspector and the contractor's job site supervisor shall exchange and review applicable safoty and health related information, procedures, and practices. The information exchange /review shall include, but may not be limited to: 1. Hazardous materials (including lead and asbestos containing materials) present in the host city's work place and to which the contractor's employees might be exposed. Information provided to the contractor shall include, but may not be limited to. • Identity and nature of hazardous materials. •. - Potential health hazards. • Protective measures. • Location of Material Safety Data Sheets (MSDS). 2. Hazardous materials brought into the host City's and/or Hutchinson Utilities Commission's work place by the contractor (including any subcontractors). Information provided to the City and /or HUC shall include, but may not be limited to. • Identity and nature of hazardous materials. • Potential health hazards. • Protective measures. • Location of Material Safety Data Sheets (MSDS) Lus OSHA/Safety Assistance 9 /04 Model Program - i� 1 i I EMPLOYEE INFORMATION Policy Employees shall be provided with adequate and effective safety and health related information. Implementation Tools Employee Rights Under the Occupational Safety and Health Act Employees will be informed of their rights under the Occupational Safety and Health Act by posting the "OSHA Poster." The OSHA poster shall be posted at all primary work locations and at City Center and the Hutchinson Utilities Commission main facility. 2. Work Place Injuries and Illnesses Employees shall be informed of work place injuries and illness by posting of the OSHA 300 A Log for the previous year between February 1 and April 30 of each year. The OSHA 300 A Log shall be posted at City Center j and the Hutchinson Utilities Commission main office facility. 3. Access to Safety and Health Related Information Employees shall be provided access to safety and health related information, including but not limited to; OSHA standards, Material Safety Data Sheets, and safety and health related policies and procedures. Safety and health related information shall be available for employee review at their respective departments. Human Resources shall be responsible for posting (or making available) the above information. Cu7s OSHA/Safety Assistance 9/04 //�/I/leI A, Model Program - / / /��V�� 4. Access to Medical Records Employee, medical records are maintained on file at City Center or the Hutchinson Utilities Commission main facility. Employees are to contact Human Resources to access and review their medical records. Upon request, medical records shall be released to the employee's private physician. 5. Access to Personal Exposure Records Employee exposure records shall be maintained and are on file at City Center or the Hutchinson Utilities Commission main facility. Employees are to contact Human Resources to access and review their exposure records. Upon request exposure records shall be released to the employee's private physician. Said records shall also be relep.sed to the employee's designated representative in accordance with applicable OSHA restrictions and procedures. 6. Access to Training Records Employee training records shall be maintained and are on file at City Center. Employees are to contact Human Resources to access and review their training records. 1 7. Warming Signs, Labels, and Tags Appropriate signs, labels, and tags shall be used to communicate work -place hazards and safety and health related information. Some examples follow: • Danger signs and tags - shall be used in major hazard situations j where an immediate hazard presents a threat of death or serious injury. • Caution signs and tags - shall be used in minor hazard situations! where a non - immediate or potential hazard or unsafe practice j presents a lesser threat of employee injury. • Warning signs and tags - shall be used to represent a hazard level between "caution" and "danger". • Safety Instruction Signs - shall only be used to communicate safety and health related information. C27SOSHA/Safety Assistance 9/04 Model Program - C EMPLOYEE TRAINING Policy All employees shall be provided with effective safety training and instruction as required by work place hazards, employee job duties, and applicable regulations. First -line supervisors shall evaluate the effectiveness of training by observing employee work practices and compliance with established safety and health related policies, procedures, and practices. First -line supervisors shall take appropriate actions to correct skill and knowledge deficiencies. Implementation Tools 1. New Employees All new employees shall be provided with effective safety training and instructions as required by work place hazards, the employee's job duties, and applicable regulations. The training shall be completed before new employees perform assigned work. New employee safety training and instruction shall include, but may not be limited to: • Information on safety and health related policies, procedures, and practices. • Instruction on the identity and nature of work place safety and health hazards, including hazard control procedures and practices. • Instruction on specific job duties including safe work practices. ii • Instruction on emergency procedures. The training will be documented and kept on file at City Center hMC OSHA/Safety Assistance 9/04 Model Program - 2. In- Service Training of Existing Employees All existing employees shall receive topical and refresher training as required by: • Applicable regulations. The introduction of new hazards. Procedural changes. Work practice deficiencies. In- service training will be scheduled on a monthly basis. Attendance will be taken and maintained on file at City Center. 3. Toolbox and Tailgate Safety Talks 'Work unit supervisors shall conduct frequent toolbox and tailgate safety talks to communicate: Topical safety and health related information. • Work- specific hazards and hazard control procedures (job briefings). • Hazards associated with non - routine tasks. 4. Training Effectiveness Shall be Evaluated by: • Work place safety inspections. • Employee compliance with established policies, procedures, and work practices. First -line supervisors shall be primarily responsible for evaluating the effectiveness of employee training. Feed back will be requested by safety committee as appropriate. TT ��,{{ OSHA/Safety Assistance 9/04 //�//p /`IQ 1.a1`"1� Model Program - / IVIZU,1111 EMERGENCY PREPAREDNESS Policy The City and Hutchinson Utilities Commission shall be prepared for all reasonably foreseeable work place emergencies. Implementation Tools 1. Fire and Emergency Prevention The City and Hutchinson Utilities Commission has established specific procedures and responsibilities to prevent fires and other emergencies in a fire and emergency prevention plan. 2. Emergency Equipment and Egress Emergency equipment, including but not limited to; exits and exit ways, fire extinguishers, first aid kits, emergency eye wash stations, emergency showers, and emergency lights shall be installed, inspected, and maintained in accordance with applicable regulations. Procedures for the inspection and maintenance of emergency equipment are established in the Fire and Emergency Prevention Plan. 3. Employee Emergency Action Plan j Procedures to be followed by employees in the event of a fire or other work place emergency are established in the Employee Emergency Actio Plan. OSHA/Safety Assistance 9/04 1 rMl. Model Program - ��%�� 9 5. Employee Training Employees shall be trained for assigned emergency response actions and duties in accordance with applicable regulations. The information and training includes, but may not be limited: • Actions and duties established in the emergency action plan. • Fire prevention and the use of portable fire extinguishers. • CPR and first aid. Job classifications required to be trained in CPR/first aid include and may be added to by the City and HUC at any time: ( Sworn Police Personnel ) ( Firefighters ) ( Water & Wastewater Operators ) ( Natural Gas Operation Personnel.) ( Electric Line Crew members ) ( Lifeguards ) �' Emergency Response j The following agencies have been designated to respond to an emergency at City and Hutchinson Utilities facility locations: Fire Department: 911 Hospital /Ambulance: 9 Police: 911 Local emergency response agencies shall be informed of work place safety and health hazards in accordance with applicable regulations. The local fire department has toured the facility, and has developed a pre- emergency plan. The preplan is available for employee review at the Hutchinson Fire Station. T j�(��II OSHA/Safety Assistance 9/04 //�, .1.17 Model Program - /I / /� /Yl/1 1 ANNUAL PROGRAM AUDIT Policy The effectiveness of the safety and health program shall be assessed by an annual audit. Implementation Tools The safety committee shall perform an annual audit of the safety and health program. The audit shall be conducted in January of each year. The goal of the audit shall be to improve overall program effectiveness by identifying specific needs and deficiencies. Specific recommendations for improving the program shall be made through updated goals and objectives. Form SP -9 (or an equivalent) shall be used to complete the audit. The safety committee shall communicate the results of the audit to the city, supervisors, and employees. hMC OSHA/Safety Assistance 9/04 Model Program - &11 I, I� Employee Copy City of Hutchinson /Hutchinson Utilities Commission Affidavit of Receipt I (print name) have seen and been given the Safety and Health Program Document dated November /December 2006, and will work to ensure that the policies included are carried out in a proper manner. Signature Date 1/2007 'j Employe Copy City of Hutchinson /Hutchinson Utilities Commission Affidavit of Receipt j I (print name) have seen and been given the Safety and Health Program Document dated November /December 2006, and will work to ensure that the policies included are carried out in a proper manner. Signature Date 1/2007 Financial/Operational Performance Metrics — reviewed monthly Positive Cash Flow —Both Combined Income Statement and Combined Balance Sheet • This is a measurement of how well Utilities Staff manages the budget. This should be reviewed monthly. Realistic cash flow numbers are established at budget time between the Utility Commissioners and Staff of HUC. Gross Margin — Electric Income Statement; Gas Income Statement • Electric —this calculation is performed to monitor power acquisition expenses to total revenue. This should be calculated at budget time, and should also be reviewed monthly. Gas —this calculation is performed to monitor gas acquisition expenses to total revenue. This should be calculated at budget time, and should also be reviewed monthly. Operating Income per Revenue Dollar — Electric Income Statement; Gas Income Statement • Electric —this calculation is performed to monitor total operation expenses to total operating revenue. This should be calculated at budget time, and should also be reviewed monthly. • Gas — this calculation is performed to monitor total operation expenses to total operating revenue. This should be calculated at budget time, and should also be reviewed monthly. Net Income per Revenue Dollar— Electric Income Statement; Gas Income Statement • Electric this calculation is performed to monitor total operating and non- operating expenses to total operating and non - operating revenue. This should be calculated at budget time, and should also be reviewed monthly. • Gas— this calculation is performed to monitor total operating and non - operating expenses to total operating and non - operating revenue. This should be calculated at budget time, and should also be reviewed monthly. Current Ratio--Combined Utilities Balance Sheet This benchmark is a measure of the utilities short-term liquidity, that is the ability to pay its bills. This ratio takes a snapshot of the utilities liquidity at a point in time and will vary considerably at other times during the year. This benchmark is useful when establishing a cash management policy. This should be reviewed monthly. Financial/Operational Performance Metrics— reviewed annually RONA — Electric Income Statement to Net Electric Utility Assets; Gas Income Statement to Net Gas Utility Assets — useful on an annual basis. This benchmark reflects if rates are sufficiently set. This benchmark should be used with Cash Flow to properly identify if rate increases /decreases are needed. This should be reviewed annually. Revenue (by rate class) per KWHR —this benchmark examines rates of comparable utilities. This should be reviewed annually. Revenue (by rate class) per CF— this benchmark examines rates of comparable utilities. This should be reviewed annually. Debt to Total Assets — Combined Utilities Balance Sheet • This benchmark measures the utilities ability to meet its current and long -term liabilities based on the availability of assets. This should be reviewed annually, and also prior to issuing debt. 1 C I UAOMe�NOUf COONN f�OM0 M. -U') � UQ 0! cl! OUDMMCOM(V lQUl1CT'c0 O v aO 00 0 0 0 CO M �-�-�NN-CV N cu � ER E9 69 E9 Eg EA E!3 69 69 EJ3 Ef3 OMOOONa0ho0N0 lf) tf) N r h � lf) 00 Un 0 ICI. -m 01- -00 LO 000 �0 4 MOCO000(D LO 'It 1:11 — Cl! hd t`O LO 0m It O Cl) N000m ��CAOCOC�UAr mu')O ��ON V- Nr00f, -M O 69 (f? E9 Ef} 6R 69 69 64 K) 69 69 64 1� ..r ml a� m �w O O U) V) c c co cc LL L F- F- 0 yLI M- (1) L- cc co V Ci) O ++ O � O � O � O � O � O � O � O � O - O O 0Lo0)lnd'a0Lf)"T O \\ O � V- N N4t�.606oi66�N c O N N N N N N M M M M W N cu } 0 U ff1 0 0 0 0 0 0 0 0 0 O O N Uf) 6.t CO N 00 m NNcM(MMCOM- Ji tCDce) T 2 U wL w W W p 0 0 0 0 0 0 0 0 0 0 'O o N 'It O 00 N N 0) T` O c o cu r-: W6T`T`o666 WCO 0 N N N N N N N N N N V N O c } W U V O o \° W f- , M M, O O o M ' Ln O M 0 00 00 0 0 'd' h CN N N N N N N N N O 2 L L cc _ O �LL2Q - 5 ,Q()OZ0 1� ..r ml a� m �w O O U) V) c c co cc LL L F- F- 0 yLI M- (1) L- cc co V Ci) O ++ O � O � O � O � O � O � O � O � O - O O 0Lo0)lnd'a0Lf)"T O \\ O � V- N N4t�.606oi66�N c O N N N N N N M M M M W N cu } 0 U ff1 0 0 0 0 0 0 0 0 0 O O N Uf) 6.t CO N 00 m NNcM(MMCOM- Ji tCDce) T 2 U wL w W W p 0 0 0 0 0 0 0 0 0 0 'O o N 'It O 00 N N 0) T` O c o cu r-: W6T`T`o666 WCO 0 N N N N N N N N N N V N O c } W U V O o \° W f- , M M, O O o M ' Ln O M 0 00 00 0 0 'd' h CN N N N N N N N N O 2 O O O N L L D >+ O f2 +. > U 'O cu �LL Q < W 0 Z 0 m § ? m�oG \9P.:cl / /�2ƒC� �y co ƒq R "t f¢\f/ � / / Mu # =c O¥rwa »r«aak f / 0 \ I .pn ¥ # #ngRGo $w w9#=aogaa b » @ 2 / k m� cu =3 5= U/ 0 0 -)L3 < .7 me «m0Z0 % >T t 2K w I G M ¥ B 0 W� k (D m d � � * �6wooak6=aa $ 7 k / cu // ƒLf) r--*gn&gq04 e� .4 ww4 'owo \ — — qq - -q qq k § a) m � � f Bw t @i / / / / / / / / /// _/ � nclgoq $� q §kdaddRRd%aa 0 k % $ ¢ƒ e b 0 v \ 3 f ƒ // #o o w- - ekCRr— & as 0 � k 9 / b� (/0EE k\ /k c u m� 0 -) L3 <I� -5 «m0z0 3 § ? m�oG \9P.:cl / /�2ƒC� �y co ƒq R "t f¢\f/ � / / Mu # =c O¥rwa »r«aak f / 0 \ I .pn ¥ # #ngRGo $w w9#=aogaa b » @ 2 / k m� cu =3 5= U/ 0 0 -)L3 < .7 me «m0Z0 % >T t 2K w I G M ¥ B 0 W� k (D m 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 Current Ratio - -A higher number is better, data is through 2005, 2006 is projected —this is a measure of a utility to pay its bills. Huc is addressing this by increasing its level of cash. 01 01 00 00 00 0� oti o0 0°` (& 0a �o No �o �o �o �yo �yo ,yo �yo �yo �yo �0�. �a 000Q�o� r `L Apo ® Current Ratio Notes: In Feb. 2006 a rate stabilization fund was established for both the Natural Gas and Electric Udwas In January 2006, the Natural Gas Division became responsible for making the entire P 6 I Payment for the plpeNe, In Janrsry 2006, the Electric Division began paying a transportation large of approximately $1,100,000 amusly. This is equivalent to appmnnataly 60 % of to P 81 paymerd for the plpal ne. The transportation expense was rolled into the electric rate structure As oondemnstion proceedings come to an and, we plan on transferring the balance of the fads in the raewable and replecemsnt fund ($269,000) New allocatlors ware used for common aopersm for both the electric and natural gas Lou". Street frghilg navamra was added Inic the aleobie Income wtarront, atldglonly the InsurMle the City was Increased by the same exact amount. The Contribution to the City was placed W a differml account, which Y for PILOT. Summary 2007 BudaeI Electric Gas Combined 7006 7007 2006 2907 20" 7097 Est haste Badger X$dW to Budget Fathowe Budget OPERATING REVENUES 28,332,239.99 28,591,548.40 $ 12,800,000.00 $ 12,283,271.00 $ 40,932,239.99 $ 40,874,819.40 Less: Cost of Goods 20,808297.89 21,169,813.71 S 10,377,603.99 $ 9.889,822.48 $ 30,983,901.88 $ 31,059.636.19 Other Operating Revenue 241,762.82 218,000.00 S 1,757,609.80 $ 1,800,000.00 S 1,999,362.42 $ 2,018,000.00 Operating Expense 5,090271.31 5,504,877,01 S 1,628,483.18 $ 2,658,432.96 $ 0,718,764.49 $ 8,363,309.90 Income from Operations 2,877,423.61 2,134,867.68 2,353,522.43 1,336,016.68 $ 5,230,948.04 $ 3,469,87326 Operating Income % -age 10.16% 7.47% 18.68% 10.87% 12.78% 8.49% Other Income(not) $ 896,608.88 $ 787,000.00 $ 284,000.55 $ 133,300.00 $ 1,170,747.41 $ 920,300.00 ImermUAmort of Debt $ 3,230.12 $ - $ 1,159,55126 $ 1,140,15126 $ 1,162,881.36 $ 1,140,161.26 Contribution to Chy- Roadway Lighting $ - $ - $ - $ - $ - $ - Contribution to CBy-in 2007 this is an operating expense $ 715.522.60 $ S 306.652.50 $ $ 1,022,176.00 $ Net Income $ 3 045 357.85 S 2.021.857.68 $ 1.171.27922 S 328164.32 S 4.216.037.07 3,250.022.00 Calculaban of PILOT Contribution to Chy-In 2007 is PayrnwA in lirel of tastes to Chy S 715,522.50 $ 725.521.31 $ 306,852.50 $ 351,663.95 $ 1,022,175.00 S 1,077,184.05 Contribution to City-to pay for roadway Bghti g(not rewlnbad In 06) $ $ 128292.35 S $ $ $ 128,292.35 Total PILOT $ 715,522.50 $ 863,813.66 $ 306,652.60 $ 35103.35 S 1.022,175.00 $ 1,205.477.01 4SiroL.4s?E.nkus�fta< Fees for Servioe -Legal $ 27,462.00 $ 28,000.00 $ 2,067.03 S 12,000.00 $ 29,529.04 $ 40,000.00 Fees for Service- Ai— Resources $ 17,828.10 $ 35,000,00 $ 1,341.90 E 15,000.00 $ 19,170.00 $ 50,000.00 Fees for Service -IT $ 61,511.77 $ 50,400.00 $ 4,620.91 S 21,600.00 S 66,141.68 s 72,000.00 Tree Pining E $ 22,600.00 S S 7,500.00 $ S 30.000.00 $ 106,001.87 S 113,400.00 5 8,038.85 S 48,600.00 $ 114,840.71 $ 162,000.00 Total Other Contributions Iota_ ]Papnem to C, 3 822,324.37 $ 967,213.66 $ 314,691.35 S 400,263.35 S 1,137.015.72 S 1,367,4'/7.tl1 Average Rate Base (RONA) $ 44,360,723.32 $ 39,144,178.00 $ 33,174,207.82 $ 36,340,717.00 S 77,643,931.14 $ 74,484,895.00 Rate of Return 6.49% 5.45% 7.09% 3.78% 6.75% 4.66% Sources of Funds: Operating Income $ 2,134,857.60 $ 1,336,016.68 3,409,87326 Depreciation and Amortization Expense S 2,019,557.95 S 922,253.00 2,941,810.95 Other Sources of Funds S 883.000.00 146,300.00 1.028,300.00 Total Sources of Funds $ 5,037,415.63 2,402,668.68 7,430,98421 Uses of Fund. Capital Expenditures $ 2,133,775.00 $ 1,318,075.00 $ 3,461,850.00 Debt Service Bonds $ - $ 2,135,15126 $ 2,135,15128 Other Uses of Funds $ $ $ Total Uses of Funds $ 2,133,775.00 3,453,220.26 5,587 ,001.28 Cash Flow S 2,903,640.63 S (1.050.667.68) $ 1 852 902.95 Beginning Year Restricted Fund. Fuzee Expansion and Devebpmerd $ 259,000.00 Medical Insurance Fund $ 100,000,00 Rate Stabilization Funs $ 111051000.00 Bond and Interest Payment Fund $ 216,000.00 Notes: Total Restricted Funds $ 1,680,000.00 1. The Ending Year Cash Available for use will Increase, Beginning Your Cash In Benk(Caeh available for use): S 3.600.000.00 lhovever, tot Fuzee Expansion and Development Fund will Total Cash at Beginning of Year 6,180,000.00 hake a zero balance. Cash Flow 2007 1,852,982.95 Total Cash at End of Your 7,032,962.95 2. In addition, It Is very Btdy tied additional raerdrled furls End Your Restricted Funds: will be eetab9Mad during calendar year 2007, as a Future Expansion and Development $ - consequence the cash avallable for use at year eM will Medical Insurance Fund $ 100.000.00 decrease substantially. Bond and Interest Payment Fund $ 220.000.00 End Your Cash In Ban Cash available for use- Includes rata stab. furl : 8.712.982.95 Notes: In Feb. 2006 a rate stabilization fund was established for both the Natural Gas and Electric Udwas In January 2006, the Natural Gas Division became responsible for making the entire P 6 I Payment for the plpeNe, In Janrsry 2006, the Electric Division began paying a transportation large of approximately $1,100,000 amusly. This is equivalent to appmnnataly 60 % of to P 81 paymerd for the plpal ne. The transportation expense was rolled into the electric rate structure As oondemnstion proceedings come to an and, we plan on transferring the balance of the fads in the raewable and replecemsnt fund ($269,000) New allocatlors ware used for common aopersm for both the electric and natural gas Lou". Street frghilg navamra was added Inic the aleobie Income wtarront, atldglonly the InsurMle the City was Increased by the same exact amount. The Contribution to the City was placed W a differml account, which Y for PILOT. 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Debt to Total Assets - -a lower number is better. HUC is addressing this by raising its level of cash, so we reduce our need of borrowing money. This ratio is a measure of utilty's ability to meet its current and long term liabilities based on its assets. Nq $Z3 M4 Of ,q,q °°° ■ Debt to Total Assets MM 7.00 M. 11 611iff 4.00 3.00 2.00 1.00 Times Interest Earned, a higher number is better —in 2006 we will exceed the benchmark. This ratio measures the ability of a utility to cover interest charges and is indicative of the safety margin to lenders. ti ti ti ti ti ti G CO ZZ CP O ti ®Times Interest Earned $4,500,000.00 $4,000,000.00 $3,500,000.00 $3,000,000.00 $2,500,000.00 $2,000,000.00 $1,500,000.00 $1,000,000.00 $500,000.00 Total Net Income 1999 2000 2001 2002 2003 2004 2005 2006 2007 Forecast Budget • Natural Gas • Electric $6,000,000.00 $5,000,000.00 $4,000,000.00 $3,000,000.00 L 0 0 $2,000,000.00 $1,000,000.00 $(1,000,000.00) Operating Income Chart Year ■Operating Income Natural Gas • Operating Income Electric [1 1 Fuel /Power Cost Adjustment Year 2006 Date Gas Electric Jan 2006 $.00099 $.00000 Feb 2006 $.00000 $.00000 Mar 2006 $.00000 $.00000 Apr 2006 $.00000 $.00000 May 2006 ($.00253) $.00000 June 2006 ($.00170) $.00000 July 2006 ($.00291) $.00000 Aug 2006 ($.00060) $.01062 Sept 2006 $.00000 $.00612 Oct. 2006 $.00000 $.00000 Nov 2006 $.00000 $.00000 Dec 2006 APPENDIX - Definitions System Average Interruption Frequency Index (Sustained Interruptions) — This is defined as the average number of times that a customer is interrupted during a specified time period. It is determined by dividing the total number of customers interrupted in a time period by the average number of customers served. The resulting unit is "interruptions per customer ". SAM = Total Number of Customer Interruptions Total Number of Customers Served System Average Interruption Duration Index — This is defined as the average interruption duration for customers served during a specified time period. It is determined by summing the customer - minutes off for each interruption during a specified time period and dividing the sum by the average number of customers served during that period. The unit is minutes. This index enables the utility to report how many minutes customers would have been out of service if all customers were out at one time. SAIDI = Customer Interruption Durations Total Number of Customers Served Customer Average Lntemtption Duration Index — This is defined as the average length of an interruption, weighted by the number of customers affected, for customers interrupted during a specific time period. It is calculated by summing the customer minutes off during each interruption in the time period and dividing this sum by the number of customers experiencing one or more sustained interruptions during the time period. The resulting unit is minutes. The index enables utilities to report the average duration of a customer outage for those customers affected. CAM = Customer Interruption Durations Total Number of Customer Interruptions [--I Page 10 of 11 Event 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 HUC Reliability Statistics for 2006 Event ID 111 113 114 124 125 127 128 131 134 136 135 138 139 179 181 184 SAIFI = Customers Interrupted Total Customers Served SAIDI = Customer Interruption Duration Total Customers Served CAIDI = Customer Interruption Duration Customers Interrupted Comparison to Public Utilities: SAIFI = SAIDI = CAI IDI = 2006 HUC 0.42 8.14 19.56 Number of Outage Customers Duration Interrupted (min) 8 39 800 7 10 155 1 75 4 47 1 60 200 41 10 105 5 40 5 15 200 8 100 43 500 16 800 14 200 44 5 90 1 20 1 53 100 60 2951 2951 7092 57733 7092 57733 2951 Customer Interruption Duration 312 5600 1550 75 188 60 8200 1050 200 75 1600 4300 8000 11200 8800 450 20 53 6000 57733 0.42 interruptions per customer /year 8.14 min /year 19.56 min 2002 Midwest Nation 0.85 3.24 50.13 65.09 55.64 65.91 1 C 2006 Investor Owned Reliability Goals Xcel SAIFI CAIDI Bemidji Work Center SAIDI SAIFI CAIDI Metro East 121.14 1.19 101.39 Metro West 152.86 1.36 112.44 Northwest 106.03 1.06 99.68 Southeast 98.72 0.96 103.11 Interstate 1.6 56.3 MN Power Work Center SAIDI SAIFI CAIDI Winnebago 65.27 0.91 72.04 Albert Lea 67.75 0.93 73.17 Otter Tail Work Center SAIDI SAIFI CAIDI Bemidji 70 1.25 56 Crookston 80 1.55 52 Fergus Falls 80 1.35 59.3 Milbank 115 2.1 55 Morris 90 1.55 58 Wahpeton 90 1.6 56.3 MN Power SAIDI SAIFI CAIDI 143.19 1.19 120.45 1 0 HUTCHINSON UTILITIES COMMISSION NATURAL GAS RISK MANAGEMENT PROGRAM 2006 VENTURA FOM PRICE HUC PROGRAM PRICE FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER $5.9000 $6.8867 $4.0500 $6.2700 $7.4000 $7.8678 $7.9200 $7.9956 $5.4400 $6.7333 $6.3800 $7.0467 $6.7500 $7.1700 $6.2000 $6.9867 $6.2900 $7.0167 $5.3500 $6.7033 ,JANUARY $9.9700 $7.7833 $7.5800 $7.4317 $2.1867 $0.1483 - $0.4200 - $0.7867 - $0.7267 -$1.3533 - $1.2933 - $0.6667 - $0.9867 - $2.2200 - $0.4678 - $0.0756 MONTHLY SYSTEM VOLUMES (DTH) 130,688 141,432 112,655 55,754 38,743 27,967 22,682 27,994 34,024 70,311 97,471 53,373 AVG. GAS DAILY DAILY PRICE $7.8984 $7.1829 $6.1456 $6.2042 $5.5498 $5.7842 $5.7119 $6.8432 $4.6832 $5.7253 $7.2023 $7.6071 AVG. MONTHLY SYSTEM PRICE $8.5309 $7.4067 $7.1102 $7.0152 $6.9430 $6.3195 $6.2561 $8.3776 $6.0104 $6.2989 $7.7895 $7.9643 - 0.002.53 - (};001 U ), 029 7 -0':00060 O.CQ�J000 0:00000 0.0000.0 ($'S PER CUBIC FOOT) HUGBP RISK MANAGEMENT PROGRAM V."' HUC Pdm Nov-05 7.1 3121900 $12.1000 Du. b Mak.l Price HUC e6cted p grcOese Gds mnbect at V-W. R. d Mmih Dec-05 10.656 $97700 $0.7700.. Jan-06 12056 590700 w,97m Feb-06 11,200 37970 37.6150 M-06 10'111 $5 7600 $72608 Purchssed 02/1605 -$7.25 Frmd Priee Apr-06 5,833 $2000 $725015:': PucMsed02fIW6 -5725 Food Prke May-0e 3.422 $.2000 $7.2506Purd=W02 /1606 -S725 Fbed Prke Jun-06 2411 X3500 $7.2505 Purdaad 02/1609 -$725 Fb dPrim Jul-06 2178 $5.4400 8725M. PueMed 021506 -$725 Rwd Pdm Aug-00 217 $6360 #26M,Pud..dd02 WI -$725 HwdPdm Sep-06 Z333 $6.0000 '$1:2500 Purdi.W02H606- S72 ed 5Fb Pdm 001-06 4.922 $40wo .'02500;:: Puaeod 0211608 -6715 Fbad Pd. Nov-06 7,m0 67.4000 DOC-06 10.$6 ;WAM Jan -07 12056 Feb-07 11200 Mar -07 10.111, Apr -07 5A33 May -07 3,422 J-07 2,411 Jul-07 2,7. Aug -07 2175 Sep-07 2959 , Oct-07 4A21 „'• 74905 Fbu PAr 551674 T-h. t Products Used Nov-05 V.W. HUC Price Nov -04 MIN 57.6900 $7.0700 D-04 31.067 $6.0000 $Q.QW Jan05 36.167 $8.0600 $6.5650 - Feb-05 33,600 $6.0600 .$.5760. Mer-05 30,333 $5:8100 $64400 Apr-05 17,wo $6.8300 $6.9600 May-05 10.207 $0.7300 $9000.. Jun-05 7233 $5.8000 $4850. Ju405 6,533 $5.6100 $8.7000 AUg-05 6.533 $8.6900 $8.4800. Sep-05 7.000 $9.2800 $7wmo.: 001 -05 14,167 $10:7800. VAM 56733 224.70 W% Per1GpetkV Seep Capped .1$7.07 17.500 588300 57.4300 Emc,aed m 0'23/2004 17,500 $5 e300 $8380 Vmb4a HUC Price NOV-05 16.40"1y1 S121$0 $79500 D-05 21,3y, $.7700 $1.06M J-06 J06 2 1 swoo $79500: Feb-00 22400 67moo .. 670500 Mare 20,221 $.31KIC '56.9000'' Apr-06 11.687 562000 May-08 6.644 $2000 i8A74 _ Jun-0B 1.822 563500. J,A-06 4,3$ x.4460- ".tle2!9(1:.. Aug-05 4S$ $3800. 5..1150:': SWa W 4.657 $9600: Od -05 Od-0B 0.644 .$4.0$00 -.. 55.5300 tiA00 30%PerScbaaq $asp Cappd d 67.00 E- dm W2YM 224,700 Fb d Pr $638 d Venture Varese HUC Prke T,T00 87,.100(1 471109 - 10..58 -- 37,929m ". sail$ ; rjlA�47 1056 V-t- HUC Price /1.206 15,41M $121800 517500. Nov-05 10,111 NOV-05 7,700 $12:1800 $72500 0.X3 21,311 507700 $7.7500. D-05 3,1x2 Dec-05 Jun-w 2411 24.111 399700 $7.7560: J"7 2.176 Jan-06 Aug -07 217 22.400 67.5800 $7.8850:: 880.07 22,400 37.5wo $797811 - 0cw Mar-06 20222 $.7500 57.2580:. Mar-06 746700 X17 p0Salpe5r0CRpedat$.71 Esmbd -9 2004 V."' HUC Pdm Nov-05 7.1 3121900 $12.1000 Du. b Mak.l Price HUC e6cted p grcOese Gds mnbect at V-W. R. d Mmih Dec-05 10.656 $97700 $0.7700.. Jan-06 12056 590700 w,97m Feb-06 11,200 37970 37.6150 M-06 10'111 $5 7600 $72608 Purchssed 02/1605 -$7.25 Frmd Priee Apr-06 5,833 $2000 $725015:': PucMsed02fIW6 -5725 Food Prke May-0e 3.422 $.2000 $7.2506Purd=W02 /1606 -S725 Fbed Prke Jun-06 2411 X3500 $7.2505 Purdaad 02/1609 -$725 Fb dPrim Jul-06 2178 $5.4400 8725M. PueMed 021506 -$725 Rwd Pdm Aug-00 217 $6360 #26M,Pud..dd02 WI -$725 HwdPdm Sep-06 Z333 $6.0000 '$1:2500 Purdi.W02H606- S72 ed 5Fb Pdm 001-06 4.922 $40wo .'02500;:: Puaeod 0211608 -6715 Fbad Pd. Nov-06 7,m0 67.4000 DOC-06 10.$6 ;WAM Jan -07 12056 Feb-07 11200 Mar -07 10.111, Apr -07 5A33 May -07 3,422 J-07 2,411 Jul-07 2,7. Aug -07 2175 Sep-07 2959 , Oct-07 4A21 „'• 74905 Fbu PAr 551674 T-d.2 Products Used Nov-05 T,e 3Producs Used D-05 10 555 $9 7700 - $8.7300 Jars -06 Vendee HUCPrbe Feb-0e VmWre HUC Price Mar 10 10111 $6.7500 $57800. Nov -04 23,100 578400 j7A3w NoVO4 23,100 .UAW $8SM Jun-06 2411 $.9590 " $7306. Dec-04 31,087 $88000 - 37.4175 Dec -04 31.957. $6.0000 583800 . ". Sep-05 2333 $5MW,- $.1900'.'. J-05 an 36,167 $60800 :372375 Jen -O 36,167 6.: 0600 56.3800 M.y607 Vaara HIICPrb. Feb-05 33,600 $00000 372425 - Feb-o5 33,600 '580600 38.3600:. Jan-07 1295. -' 523440:: Mar -05 30,333 $58100 $1.1750: Mar -05 30333 $58100 SB 3880 Apr -07 56733 Apr 05 17.500 588300 57.4300 Ap,05 17,500 $5 e300 $8380 JW -07 217 . ' 37J1109: May -05 10.267 $67300 $74050 May-05 10,267 $67300 $63800 0"7 46722 - AA Jun 05 7.233 $.8000 $7.4075. Jun-05 7,M3 $8800 38:3800 e..Adm02mvw Jul -05 8,533 $5.5loo $795Sw J61.05 6,533 $5.5100 $3800 Aug -O 6,533 $68900 27.4450 Aug -05 6.533 38.0000 583860: Sep: 7,000 $0.2900 21.6300 SeP-05 7,000 S9.2w0 $89600: -. Oct -05 14,467 $10.7800 - :$7.5300 Od -05 14,467 810.78110 $3800 224,70 25% p odp.*V Seep Capped M $7.63 224,700 Fb d Pr $638 d Venture Etmauled m 10/1312004 E..ut d m 10/2604 Vmbre HUC Prke Vmkre HUC Pnm V-t- HUC Price N-05 15,41M $121800 517500. Nov-05 15,400 $127000 482500 NOV-05 7,700 $12:1800 $72500 Deo-05 21,311 507700 $7.7500. D-05 21,311 $0.7700 $021500 Dec-05 10656 30.7700 672500 Jan -06 24.111 399700 $7.7560: JBn-06 24.111 - .10,9700 582509: Jan-06 120$ $9.9700 $7257: Feb-06 22.400 67.5800 $7.8850:: Feb-M 22,400 37.5wo $797811 Feb-06 'two 57.SW VT-"w Mar-06 20222 $.7500 57.2580:. Mar-06 202n $6.7s00 67.5000.. Mar-06 10.111 58.7500 572508:. Apr-06 11,687 $2000 869750:'. Apr-06 11.657 '$2000 572290::: Apr-06 5033 38.1000 672300: May-06 8.844 $2900 SIAW Mey-06 6,BN " $52000 672700.: May-06 3,422 $2000 IFT.M Jun -06 4,822 $.3500 -. J-06 4,822 - $.3500 368000: J-05 2411 $5.3500 37.2500: Jul-06 .18.4310 4,358 $ ,39.6650: -. Jul-06 4.356: $5.4400 ,36."M Juwo 217 $5.4400 #7XSW:. Aug-08 "4100 4,3$ SOMW 5736§0:- Aug46 4.356 .:$.3800 `:4,A150.:: Aug-06 2178 $535" 37. 2498 -:, S.P-w 4.667 $.0000 fbffi�:" Sep-06 4.667 102i5000 .,;7AM :,. Sep-W 2993 $.0000 672800: Od-06 OA44 $1.0500 X353000: Od-06 9,844 $4,0300 i$e:1$0::'. Oct-06 4.882 .$4.0500 '81.2506 -; 10,000 6l1%P +6cbeMq Saap Gaped al57.]5 140.800 59%PrBdptlYq SY/i CSppedi$25 74900 Pbrd Prker f725 A, VanMa Emcubd m 10RUAD04 E om*d m 10282004 Esc1Ad 0�05 Verdun Hl1G Prlm Nov-06 V.,t- HUCPdm 7,700 STAN JOW Nov-00 Ver1Wa HUC Pd. 7700'3$4000 N-06 Dao-0B 7.700 474000 %51.67(188: 1018$ 5792119 D-W 101$6 193n0 wil29D:! Dec-W lama wj= J07 12056 Jert07 72056. 38"7 12056 Feb-07 11209 Feb-07 71.2M Feb-07 Mar-07 11,17 10,111 (1.6786 Mar-07 10.111 Mar 07 10.111 Apr 07 SA33 547106:: APf -07 6.039 Apr -07 56739 - -: May-07 3.422 16.2700- May-07 3,422 Mey6O7 8,422 Jun-07 2411 567109; Jun-07 2411 Jun-07 2411 '.. JUI-07 217 $47490' Ju407 217 Jul-07 z17 Aug-07 217 $67440, Aug-07 217 Au�7 2,�7 Sop07 2%33- _bi40o' -_ Sep -07 Oct-07 2?$ - 46722 Od-07 .: {,322 c2 Oct -07 46712 74900 Fbed Priw�$ At Ventea 76,900 Cater- $�9W672(1 Fa$S75 pr.,a.a 74900 tD1i P�6ebraEq ass Gaped 4$7.62 -74 EsMed00r2BO5 PraNm MMlnbSOW�a*s a achpnM E-.c dm 101%200/ V."' HUC Pdm Nov-05 7.1 3121900 $12.1000 Du. b Mak.l Price HUC e6cted p grcOese Gds mnbect at V-W. R. d Mmih Dec-05 10.656 $97700 $0.7700.. Jan-06 12056 590700 w,97m Feb-06 11,200 37970 37.6150 M-06 10'111 $5 7600 $72608 Purchssed 02/1605 -$7.25 Frmd Priee Apr-06 5,833 $2000 $725015:': PucMsed02fIW6 -5725 Food Prke May-0e 3.422 $.2000 $7.2506Purd=W02 /1606 -S725 Fbed Prke Jun-06 2411 X3500 $7.2505 Purdaad 02/1609 -$725 Fb dPrim Jul-06 2178 $5.4400 8725M. PueMed 021506 -$725 Rwd Pdm Aug-00 217 $6360 #26M,Pud..dd02 WI -$725 HwdPdm Sep-06 Z333 $6.0000 '$1:2500 Purdi.W02H606- S72 ed 5Fb Pdm 001-06 4.922 $40wo .'02500;:: Puaeod 0211608 -6715 Fbad Pd. Nov-06 7,m0 67.4000 DOC-06 10.$6 ;WAM Jan -07 12056 Feb-07 11200 Mar -07 10.111, Apr -07 5A33 May -07 3,422 J-07 2,411 Jul-07 2,7. Aug -07 2175 Sep-07 2959 , Oct-07 4A21 „'• 74905 Fbu PAr 551674 Vw"a HUC Prinz Nov-05 7.700 $121000 : $573110. D-05 10 555 $9 7700 - $8.7300 Jars -06 12056 $.9700 - se.nm Feb-0e 11.200 $7.6800 $.7300 Mar 10 10111 $6.7500 $57800. Apr-06 5533 $52000::567300 - May-0e 9422 $2900.. $57310 Jun-06 2411 $.9590 " $7306. Jul-w 2178 $5.4400 $6"3900 Aug-06 2178 $$96:." $.7300. Sep-05 2333 $5MW,- $.1900'.'. Od-06 4,821 $40500- .'.857300.. Apr -07 74900 Fiord Pdmat$.73AtVmlura 5.73154062M M.y607 Vaara HIICPrb. N.V06 7.700. $74000 Dec-W 19.x55 67A7a6 � 675110': Jan-07 1295. -' 523440:: Feb-07 11.200 {73tD0 Mar -07 will ? 2121107$- Apr -07 56733 Vey-07 3.422 ;$73100. AM-07 2411 ST31w, JW -07 217 . ' 37J1109: Aug-07 2,179 Sep-07 26733 0"7 46722 - AA 741M FWdPdmat$TAt AtVankea Eaculed 0620105 V."' HUC Pdm Nov-05 7.1 3121900 $12.1000 Du. b Mak.l Price HUC e6cted p grcOese Gds mnbect at V-W. R. d Mmih Dec-05 10.656 $97700 $0.7700.. Jan-06 12056 590700 w,97m Feb-06 11,200 37970 37.6150 M-06 10'111 $5 7600 $72608 Purchssed 02/1605 -$7.25 Frmd Priee Apr-06 5,833 $2000 $725015:': PucMsed02fIW6 -5725 Food Prke May-0e 3.422 $.2000 $7.2506Purd=W02 /1606 -S725 Fbed Prke Jun-06 2411 X3500 $7.2505 Purdaad 02/1609 -$725 Fb dPrim Jul-06 2178 $5.4400 8725M. PueMed 021506 -$725 Rwd Pdm Aug-00 217 $6360 #26M,Pud..dd02 WI -$725 HwdPdm Sep-06 Z333 $6.0000 '$1:2500 Purdi.W02H606- S72 ed 5Fb Pdm 001-06 4.922 $40wo .'02500;:: Puaeod 0211608 -6715 Fbad Pd. Nov-06 7,m0 67.4000 DOC-06 10.$6 ;WAM Jan -07 12056 Feb-07 11200 Mar -07 10.111, Apr -07 5A33 May -07 3,422 J-07 2,411 Jul-07 2,7. Aug -07 2175 Sep-07 2959 , Oct-07 4A21 „'• 74905 Fbu PAr 551674 Nov-06 Vee9aa HUCPrIm j Deo-0e vin HUC PdM NOV-0e 7,70 67AO60 MW NOV-06 7,700 57.4ow MW De006 10,a$ 679200 $9.4500' Dec06 10,M 57970 ;$,4600.: Jan-07 rose Jan-07 12056 Fe"7 11.200 Feb-07 11200 Ma07 10,111 Mer -07 10.111 Ap07 5A33 Apr -07 5,aw M.y607 3.422 May-07 3,422 Jun-07 2411 Ju.-07 2411 JuW7 2178 Jul-07 217 Aug-07 z,m, Aug -07 217 SsP-07 2793 Sep-07 2.333 Oct-07 1,622 - Oct-07 46722 ..,x " : 71670050%Pedklaa1np Sloop Cppdat 211.00 7/ 900 Ea% ParSdpeW,p SYwp CWPWN$ll.00 F .ubd 7(122100 e..Adm02mvw Nov-06 VerAae HUC Pam 7,7110 $24000 MW j Deo-0e 106759 57.4280 - X0909" Jan-07 12066 3e9wo -: Feb-07 11200 546103_, Mar -07 15111 , 9.8.1460: Apr -07 s,033 i0, Or00:: Msy07 Jun-07 3.422 2411 j" Ep34pD': JUW7 217. �aGJywp -: Aug-07 Sap-07 217 2333 3a9490 Oct-07 74.900 Fbed Pam at $0.04 At Venkae E -A.d WWM V4rM IN/C Price ^t/arrkea IIllC pryCe V.A- HM Pd. Va HUCPrise j V.0- Salt. Pdp. j j V rd- M)CPdm j I Venkaa WON. 1 1 t40v-07 a7roV ` - Prks Deo-07 106758 . Nov -07 7700 _ Der.07 wAw, -y DtK,07 186756 ! De0-07 10,X6 r i i Dao07 10X9 ! ! D-07 10� I 1 N-07 77W,11. •" Nov07 T,7o .� , Dap-07 w.e$ Deo07 10.X6 F_ Jane 126756 "rvw � aL J.r, -o6 ,zow s J.,48 72.85. i J.n-06 ,1675. `',s i i Jeno6 121. i i Jan-06 12.056 Jar.oe ,2.059 JarF08 120$ �' 4 Feb08 0200 Feb.06 116710 ,� F4,6.OB 71200 S Feb-OB 11200 Feb-0e „200 Fsb4)e 77200 Feb-08 11255 FebJ>8 ,1210 Feb08 116710 ,fit' Mer-08 10,11 `` Mer478 18,11 I MW-08 10,111 ,,- 1 1 Msr-08 101,1 ' ,. 1 i Mer-08 10121 1 1 Mar-08 10.711 Mef478 10.111 mw-oe 10111 ir# % 3 Y _3 ! se's,. ^yc t . -✓ P 6 '' sAu ' Mr-0e 5.6$ Mar-OB 1044, .� > Apr S.m3 °-*�f ,;3 r o� .;q," m i aAaa # }� }>4:: i 1 am` i iM� Apr-08 66773 3 Apr 6.X3 € . Me 3471 �r 2'05 2122. Me 8.{72 34II Mayes 3.472 Mey-08 67422 "' ' JII DB 2411 Y`. Jull-06 2411 i AIRW 2.411 - I 1 JurF06 2{,1 > i 1 Jurt08 0� Jun-0B z {t, Jarr48 zst, Jun-08 241,E `."'i< JuF08 2.17. J z,7r �ro r -: J,IOB 2.17 5 z /tt a r� j i i Jur,-06 76771 Jul -OB 2.,7 f.- JuF08 2.,7 Jtd-OB 2.,7 ;, y.i' x 2'77 .n - Ix y i i �-W 2.17 i i r i i zt7 Ag-08 2.17 Aug-08 2./7 Aug-0e 2.173 Jld-0e 2. ,7 S*p4D8 2= Aug-OB 217 -* Aug4)8 2.m L z ax >~`a«.. .7 i ` i .. *` . �y i 1 2.$3 i i SeP-08 2.883 � ' °It i i -PO 2a� BaPpg zmg �,�,};, SeP-08 26785 � ,'` -+. Oct-0e 4x2, s�'' .., t od-08 {6772,., ..,, ._. Od-08 46772 �. . -1.,.. Od-0B 46722 -- J..'Y, Od-0B {6722 OCt-06 4,X1 i Oct-08 4X2 Od-08 46772;1 , t 3, x ,. a TIP(10 7 {6700 3 74.900 OQ-08 46772 7,9(10 FkvPrkadat67A0 AtV4Mae 74,000 Se%P.Sat+Ea $Yap Cappedt81095 74,w050%ParidpaaO Swap Oappd .10095 1 7 {900 Fled Pdmat50wAeVaAn 1 1 - 1 Y 74900 Fbed PAmet$S4AtV.A- 74,900 40kV rob- F>enrld d t$?S Ex=ftdm081 M Em bd m 822006 6embd(1827Ae '2806 - _- ._.._.._. .- _.._.._ - _.- _.._ -s e.. ..... - E .Ub.d 09 VerAUa HUC PAm '1 1 Ve1,Yee HUC Prke � � � _�_-- _ - - -_• Versa HUC Prim - -� -j 1 ._.�_�� Wiri HIIC Prb .• �- 1 �- ��_ -._�.- VaAUe HUC Prke •�� •�- •_.�_�•_•• Vaebe HUC Prim 1 VaMre HUC Prke_ 1 I Ver,era HUC Prke 1 Npv-08 77x0 ",` NoVOB 7.76 ° "` Nov-08 7700 Nov-08 T,7W 1 Nov-08 7,700 �':- NovOB 777:° Noy-ft 7700,; '�"r° i i -. 1' 1 1 n'°S 5�v 1 1Nov-08 7.700 N5v08 770 s' � ^-�,- j n I I Oeo41B wASO; 1 1 Dso4% 101.8. �"? t 's . Oso08 106756 . Dso-08 w.Xe . Dspoe 1067$ . Dec .08 ,eA$:~ Do.-0e wow 0.9-03 wASe� Deo08 w67$�,� ":; Jr1-0o 12.656 �'� JW49 ,26756 �. i JarHOD 1210$ �-.�� i JanOB ,20$ i Jsn47e ,2.o$ ,Jen41e lzosa Jan-0B 120$ , : Feb-0D 1,200 .r 1,,26(1 ,Feb -oe 1,.70(1 .. F4-0e ,120(1 F�ib-0a ylo . 1 ',�- Feb-W 11J3m. .. Fb-0O 1120(1 _ m ..�� Feb-0B 11,011 y' Fab41a 11200 '`:'' t y' 1 Mer-0e 10111 WPM 10.111 Mere 10111 " Mare 10,111 y ``'+ I Mre 10,11 ;aY- 119 3 a 6° 1#! 5x9 r - 475 6109 s.x POB 9,613 Mar-0B 10111 r . r-W SAM 1 1 Apr-0e 5,833`:• $? I 1 Apr-0o SA33 c I 1 Apra $67$3 a 'a`. 1 I Mr f I 1 Apr-09 1 1 AP 1 1 Apr -09 5.X3 Apr-0$ 6, w g -,,--- 1 M '- Me 8,182.9 May-09 SIn • May-06 8422. z. y ' Mey438 3482 ' May-00 8422. `.. ' Mey-0& a,422� r; s • Mey4)B 8.{72 May4N 8.472 w , May-09 8.422 1,1 1 t Jun-09 2471 i 1 I Jun09 tat, m x 1 1 JurWD 2{,1 1 1 ha, 0p 2{t, ! ! Jurr-09 2411 1 t i 1 1 Jun-09 2411 .Jun -OB 2411 Jv,-0e 21st , June 2.441 Jul-OB 217.', �` �� Jul 2173 '' i j J� 273_ i i JuFOB 277/ `. I 1 277 1 Aug-0D 2173 1 1 6719-09 217 Alls JuFOe 217 - i Ju409 2,7y I 1 ,,. I 1 sm 2.,7 tike JuF08 217 AErg -00 2.114'- i Aug-00 217 Aug-00 2.$,"K 6719'00 zt7 i Au9-0V 2.17k' i i 273 ��'' Sap-0e 2.839 ,x SsP-05 2.383 Se s 1 wf,�, j I 5.04)0 zA33;:- ;3. 1 ! $ems 2.6733 sy a. Sep-0e 7x3 y fi P� zxs �.._, 1 ! 1 ! p-0a 2.$3 8sp-0e 2,64 "r`Y ¢+ -09 2.67$ S,wk' ; `: OU-09 46772 %; oche 1.8x2 -", .: ,. i Od-0B {6727 `0 i Od-00 46711, i Od Oe 127 -.. i Oct-09 1.X2.,_ ra,., v 1 7980 7 /9(10 08-05 71672x. ,.,�� " 08.06 41.2.2 Od-09 46722 c�. A..- ✓�'1'i: 1 74.000 74900 74.$00 7 {,500 t0liPil.*-S,w GWpedr$0.e5 ! 74900 Fbed Pd d$9MAtVanea ! 74 _ EX=Aedaemt06 1 r I January 2006 1 11 September 2006 ii 1 October 2006 I' C O LL z L_O 1p^ yI CJ W w z O ro y O V W H J H z O z V 2 M N N N O O z c O Y .j v z O O V U) U) W U) �U) 2 I-ti zaz�� 0 00000 V) U)TT z =zNN (� =MM =N =ati H a z V z a, 0 W 14 N O O U. U) 2 co z N 'T CO X I-- Oz_�c zm�� a O Q 0 N m 0 LL ('L I a� Q CL O V a. 0) .0 V a a� w H m U) ca r a (D rn ZK C CL 0o aD (' 0) C CO)o yj O E� �C; � N O N c J � � O - 0 LO O 0 " O rn L m xL cn L� U r m ao co O 0 N N N O M O N `- � rn cm cu m a Y w 0 0 z w Ctf ¢ CL 00 O W F- ¢ � U m N m o a w Q ;VSGNINS4 firnit1Es AGREEMENT Hutchinson THIS AGREEMENT is made by and between Hutchinson Utilities Utilities Commission, hereinafter "HUC" and Minnesota Mining and Commission Manufacturing Co., Hereinafter "3M ", on the following terms and conditions. 225 Michigan Street WHEREAS, 3M desires to purchase, and HUC would provide, Hutchinson, Minnesota Firm Gas for use at 3M's Hutchinson North and South Plants; and, 55350 WHEREAS, 3M, does acknowledge that HUC will, in reliance upon this Agreement, enter into an agreement to provide Firm Gas and Transportation. NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties make the following Agreement: HUC shall provide, and 3M shall accept, Firm Gas commencing January 1, 2007, at 9:00 a.m. and terminating on January 1, 2008, at 9:00 a.m. 1. 3M shall pay HUC by the following schedule during the term of this Agreement: (All rates expressed as $ /Dth.) Flow Through All Gas Meters Commodity Index Transportation $0-45 $0.85 Craig Lenz President Monthly Peak Donald Walser Day Demand $9.00immBtu $0.00 Vice President David Wetteding Secretary Steven Cook 2. Hutchinson agrees to provide daily swing supply to 3M Commissioner at the applicable price, as published for the day by Dwight Bordson Platt's "Gas Daily' in its "Daily Price Survey ($ /Dth)" for Commissioner "Northern, Ventura" "Midpoint" ( "Daily Index ") Michael Kumm plus /minus $0.01. Swing supply is defined as supply General Manager increases or decreases, from contracted levels, nominated at least 24 hours prior to the start of the gas Tel 320 - 587 -4746 day. Fax 320 - 587 -4721 3. Hutchinson shall provide 3M with real -time balancing, based on the following: • Best Efforts Realtime Swing nominated less than 24 hours prior to the end of the gas day on a best efforts basis, priced at the applicable price, as published for the day by Platt's "Gas Daily" in its "Daily Price Survey ($ /Dth)" for "Northern, Ventura" "Midpoint" ( "Daily Index "), plus /minus $0.15. 4. 3M shall provide to HUC, by the end of the15th day of the month prior to gas flow, the baseload level of natural gas required for the following month. In the event HUC has not received the baseload nomination from 3M by the end of the 15th day of the month prior to the gas flow, HUC shall nominate the current month's baseload level for the following month. 5. During the term of this Agreement, HUC shall not be liable for stoppage of flow on the pipeline, Northern Border Pipeline Company equipment failure, or any other force majeure which affects the flow of gas to the HUC Border Stations, or any act of God which interrupts flow of gas on the pipeline. 6. This Agreement sets forth all terms agreed upon between the parties, and no prior oral or written agreements shall be binding. This Agreement shall not be altered, amended or modified except as in writing and executed by both parties. Dated: Dated: Hutchinson Utilities Commission By: Minnesota Mining & Manufacturing By: 1 O LL z O V� D a W w _O ,V) ,A vC_I G O V W _F J_ P n z O T_Z i V D r M N O O O z c 0 j a� z _O N N C ♦O V W ui W 10 � U) z ZCY a` O OODOD y(2N '919 z Z z N N (� = M M F- C D N m 0 x 2 N X a' I O C]. t z LL N CD �ZM'T 'T O o LO (� 000 co LLLI ) Q. 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