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05-08-2007 HUCMSpecial Meeting Public Hearing May 8, 2007 Members present: President Donald Walser; Vice President David Wetterling; Secretary Dwight Bordson; Commissioner Craig Lenz; Commissioner Robert Hantge; General Manager Michael Kumm; Attorney Marc Sebora. President Walser called the Public Hearing to order at 9:00 a.m. General Manager Kumm presented Resolution 1002, Approving and Authorizing Execution of the Minnesota Municipal Gas Agency Agreement. President Walser welcomed Mayor Steve Cook to the meeting. Mayor Cook was asking for clarification of the agreement. GM Kumm cautioned the Commission on the precarious nature of the ethanol industry, in that, until the plant is constructed and the gas is flowing, we should not forecast the receipt of payment for services and commodity provided. GM Kumm explained the benefits of bringing savings back in the cost of dollars for the rate payers. After further discussion Commissioner Hantge made a motion to close the public hearing. Secretary Bordson seconded the motion and it passed unanimously. Commissioner Lenz made a motion to approve Resolution 1002, Approving and Authorizing Execution of the Minnesota Municipal Gas Agency Agreement. Secretary Bordson seconded the motion and it passed unanimously. Attorney Sebora will forward a like resolution to City Council to adopt the same. GM Kumm presented three agreements with New Vision Cooperative, for discussion purposes only: Interconnect Agreement … build an interconnection between our natural gas pipeline and New Visions natural gas pipeline Transportation Capacity Agreement … provide firm transportation capacity Commodity Agreement … provide firm gas and transportation to the St. James Meter Station New Vision Cooperative would become a retail customer of HUC necessitating a change in the City Ordinance to provide service outside the city limits. Attorney Sebora will present ordinance changes to the City Council for approval. Commissioner Lenz made a motion to move into closed session at 9:33 a.m. Vice President Wetterling seconded the motion and it passed unanimously. Those in attendance for the closed meeting are: President Walser, Vice President Wetterling, Secretary Bordson, Commissioner Lenz, Commissioner Hantge, Attorney Sebora, General Manager Kumm, Recording Secretary Lin Madson, Human Resource Director Brenda Ewing, Attorney Susan Hansen with the Law Offices of Frank Madden & Associates, and Wayne Brede from Laumeyer & Associates. Vice President Wetterling made a motion to move from closed session back to open session at 10:38 a.m. Commissioner Lenz seconded the motion and it passed unanimously. There being no further business, Commissioner Lenz made a motion to adjourn the special meeting at 10:40 a.m. Vice President Wetterling seconded the motion and it passed unanimously. _________________________________ Dwight Bordson, Secretary ATTEST________________________________ Donald H. Walser, President Special Meeting Public Hearing May 8, 2007 Members present: President Donald Walser; Vice President David Wetterling; Secretary Dwight Bordson; Commissioner Craig Lenz; Commissioner Robert Hantge; General Manager Michael Kumm; Attorney Marc Sebora. President Walser called the Public Hearing to order at 9:00 a.m. General Manager Kumm presented Resolution 1002, Approving and Authorizing Execution of the Minnesota Municipal Gas Agency Agreement. President Walser welcomed Mayor Steve Cook to the meeting. Mayor Cook was asking for clarification of the agreement. GM Kumm cautioned the Commission on the precarious nature of the ethanol industry, in that, until the plant is constructed and the gas is flowing, we should not forecast the receipt of payment for services and commodity provided. GM Kumm explained the benefits of bringing savings back in the cost of dollars for the rate payers. After further discussion Commissioner Hantge made a motion to close the public hearing. Secretary Bordson seconded the motion and it passed unanimously. Commissioner Lenz made a motion to approve Resolution 1002, Approving and Authorizing Execution of the Minnesota Municipal Gas Agency Agreement. Secretary Bordson seconded the motion and it passed unanimously. Attorney Sebora will forward a like resolution to City Council to adopt the same. GM Kumm presented three agreements with New Vision Cooperative, for discussion purposes only: • Interconnect Agreement — build an interconnection between our natural gas pipeline and New Vision's natural gas pipeline • Transportation Capacity Agreement — provide firm transportation capacity • Commodity Agreement — provide firm gas and transportation to the St. James Meter Station New Vision Cooperative would become a retail customer of HUC necessitating a change in the City Ordinance to provide service outside the city limits. Attorney Sebora will present ordinance changes to the City Council for approval. Commissioner Lenz made a motion to move into closed session at 9:33 a.m. Vice President Wetterling seconded the motion and it passed unanimously. Those in attendance for the closed meeting are: President Walser, Vice President Wetterling, Secretary Bordson, Commissioner Lenz, Commissioner Hantge, Attorney Sebora, General Manager Kumm, Recording Secretary Lin Madson, Human Resource Director Brenda Ewing, Attorney Susan Hansen with the �I Law Offices of Frank Madden & Associates, and Wayne Brede from Laumeyer & Associates. Vice President Wetterling made a motion to move from closed session back to open session at 10:38 a.m. Commissioner Lenz seconded the motion and it passed unanimously. There being no further business, Commissioner Lenz made a motion to adjourn the special meeting at 10:40 a.m. Vice President Wetterling seconded the motion and it passed unanimously. ATTEST Lia— LiL,, Donald H. Walser, President Q4t, Lt &V Jvr' Dwight Bordson, Secretary RESOLUTION 1002 Adopted May 8, 2007 RESOLUTION OF HUTCHINSON UTILITIES COMMISSION RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF MINNESOTA MUNICIPAL GAS AGENCY AGREEMENT WHEREAS, the Hutchinson Utilities Commission is duly authorized to engage in the local distribution and sale of gas; and WHEREAS, the Hutchinson Utilities Commission desires to join with other Municipal Gas Systems for the purpose of establishing a municipal gas agency to secure reliable sources of gas as provided for in Minnesota Statutes, Sections 453A.01 through 453A.12 (the "Act'); and WHEREAS, there has been presented to the Hutchinson Utilities Commission a form of agreement which, if entered into between the Hutchinson Utilities Commission and other Municipal Gas Systems named therein, would establish the Minnesota Municipal Gas Agency (the "Agency'), a municipal gas agency pursuant to the Act; and WHEREAS, the public notice of this meeting has been given as required by the Act. NOW, THEREFORE BE IT RESOLVED, AS FOLLOWS: The Hutchinson Utilities Commission approves entering into an agreement entitled "Agency Agreement," with such other Municipal Gas Systems as are named therein, such agreement to be effective as of the date when executed by all of the Municipal Gas Systems named therein, substantially in the form submitted to this meeting for the purposes of establishing and becoming a member of such Agency; and The Hutchinson Utilities Commission appoints Mr. Michael L. Kumm to act as its Initial Representative in the exercise of its powers in respect of the Agency; and, The aforementioned agreement shall be executed by Mr. Michael L. Kumm or Mr. John C. Webster for and on behalf of the Hutchinson Utilities Commission after the names of the Initial Representatives of the Hutchinson Utilities Commission and other Municipal Gas Systems entering into the agreement have all been inserted in the agreement. HUTCHINSON UTILITIES COMMISSION Of the CITY OF HUTCHINSON, MINNESOTA By ATTEST: By CRA-I G tur COMMIS ER ".:!k! Lis, Signature DONALD H WALSER Name (Printed) PRESIDENT Title RESOLUTION NO. 13190 RESOLUTION CONCURRING IN APPROVAL AND AUTHORIZATION OF EXECUTION OF MINNESOTA MUNICIPAL GAS AGENCY AGREEMENT WHEREAS, the Hutchinson Utilities Commission (hereinafter referred to as the "Governing Body ") has been empowered by law, city charter, or by resolution of the city council (the "City Council ") of the City of Hutchinson, Minnesota (the "City ") to establish and regulate rates and charges for the distribution of gas within the City; and WHEREAS, the City, acting through the Governing Body, has by resolution approved and authorized execution of an agreement to establish and make the City a member of the Minnesota Municipal Gas Agency and appointed the Hutchinson Utilities Commission Initial Representative to such Agency pursuant to Minnesota Statutes, Sections 453A.01 through 453A.12 (the "Act "); and WHEREAS, the Act provides that the aforementioned resolution of the Governing Body will become adopted by the City only upon the concurrence of the City Council of the City. NOW, THEREFORE BE IT RESOLVED that the City Council concurs in the resolution passed by the Governing Body to approve and authorize execution of an agreement entitled "Agency Agreement," with such other Municipal Gas Systems as are named therein, such agreement to be effective as of the date when executed by all of the Municipal Gas Systems named therein, for the purpose of [establishing and] becoming a member of said Agency and the appointment of the Hutchinson Utilities Commission Initial Representative as provided for therein. CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA (Seal) ATTEST: By By Signa re Signature i By {� Name (Printed) [Mayor] 4z�, Title