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12-26-2007 HUCMRegular Meeting December 26, 2007 Members present: President Donald H. Walser; Vice President David Wetterling; Secretary Dwight Bordson; Commissioner Craig Lenz; General Manager Michael Kumm; Attorney Marc Sebora. Member absent: Commissioner Robert Hantge President Walser called the meeting to order at 3:00 pm. The minutes of the November 28, 2007 regular meeting were reviewed. A motion was made by Vice President Wetterling, seconded by Secretary Bordson to approve the minutes as written. Motion was unanimously carried. A representative from FluiDyne Engineering Corp. dba Phoenix Solutions Company, was welcomed to the meeting. A presentation was given on `Plasma Gasification'. This is an alternative for producing energy. A bill, authored by Rep. Paul Thissen and Sen. Dan Larson, will be presented at the upcoming MN legislative session which will provide financial support for a demonstration of plasma gasification to electricity. HUC has been asked to be the host site for this demonstration. At this time Phoenix Solutions is asking for a letter of intent. The breakdown of the costs for this demonstration is: State of MN $2,500,000 Phoenix Solutions $ 500,000 HUC $1,000,000 Other Sources $1,000,000 (being determined) $5,000,000 After discussion it was decided that a letter of intent will be drafted and presented to the Commissioners at the HUC /City joint meeting on January 10, 2008 as an agenda item. A motion was made by Vice President Wetterling, seconded by Commissioner Lenz to draft a `letter of intent' to be presented at the next Commission meeting. Motion was unanimously carried. The November payables were discussed. A motion was made by Commissioner Lenz, seconded by Vice President Wetterling to ratify the payment of bills in the amount of $3,006,190.35 (detailed listing in payables book). Motion was unanimously carried. The financial statements /budget year -to -date were discussed. GM Kumm asked to move the medical insurance restricted fund to the catastrophic fund, as we are no longer self insured. A motion was made by Commissioner Lenz, seconded by Secretary Bordson to move the medical insurance restricted fund to the catastrophic fund. Motion was unanimously carried. GM Kumm asked to write -off the accrued medical fund, with 70% going to the electric division and 30% going to the gas division income statements. A motion was made by Regular Meeting December 26, 2007 Members present: President Donald H. Walser; Vice President David Wetterling; Secretary Dwight Bordson; Commissioner Craig Lenz; General Manager Michael Kumm; Attorney Marc Sebora. Member absent: Commissioner Robert Hantge President Walser called the meeting to order at 3:00 pm. The minutes of the November 28, 2007 regular meeting were reviewed. A motion was made by Vice President Wetterling, seconded by Secretary Bordson to approve the minutes as written. Motion was unanimously carried. A representative from FluiDyne Engineering Corp. dba Phoenix Solutions Company, was welcomed to the meeting. A presentation was given on `Plasma Gasification'. This is an alternative for producing energy. A bill, authored by Rep. Paul Thissen and Sen. Dan Larson, will be presented at the upcoming MN legislative session which will provide financial support for a demonstration of plasma gasification to electricity. HUC has been asked to be the host site for this demonstration. At this time Phoenix Solutions is asking for a letter of intent. The breakdown of the costs for this demonstration is: State of MN $2,500,000 Phoenix Solutions $ 500,000 HUC $1,000,000 Other Sources $1,000,000 (being determined) $5,000,000 After discussion it was decided that a letter of intent will be drafted and presented to the Commissioners at the HUC /City joint meeting on January 10, 2008 as an agenda item. A motion was made by Vice President Wetterling, seconded by Commissioner Lenz to draft a `letter of intent' to be presented at the next Commission meeting. Motion was unanimously carried. The November payables were discussed. A motion was made by Commissioner Lenz, seconded by Vice President Wetterling to ratify the payment of bills in the amount of $3,006,190.35 (detailed listing in payables book). Motion was unanimously carried. The financial statements /budget year -to -date were discussed. GM Kumm asked to move the medical insurance restricted fund to the catastrophic fund, as we are no longer self insured. A motion was made by Commissioner Lenz, seconded by Secretary Bordson to move the medical insurance restricted fund to the catastrophic fund. Motion was unanimously carried. GM Kumm asked to write -off the accrued medical fund, with 70% going to the electric division and 30% going to the gas division income statements. A motion was made by Vice President Wetterling, seconded by Secretary Bordson to write -off the accrued medical fund as discussed. Motion was unanimously carried. After further discussion, a motion was made by Vice President Wetterling, seconded by Commissioner Lenz to approve the financial statements/ budget year -to -date. Motion was unanimously carried. The HUC Data Practices Act and Public Records Request Policy, tabled from November 28, 2007 regular meeting, was tabled once more. GM Kumm presented updates and changes to the 2008 budget. After discussion, a motion was made by Commissioner Lenz, seconded by Secretary Bordson to approve the 2008 budget, noting the changes made by staff. Motion was unanimously carried. Brenda Ewing, Director of Human Resources, was welcomed to the meeting. Ms. Ewing presented the 2007 Pay Equity Report for approval. This report is submitted to the MN Department of Employee Relations indicating that HUC is in compliance with the pay equity requirements. A motion was made by Vice President Wetterling, seconded by Commissioner Lenz to approve the Pay Equity Report, adding the total payroll to the report once those figures become available. Motion was unanimously carried. Steve Lancaster, Director Electric Division, presented an advertisement for bids for 40' aerial man lift device with service body (replaces bucket truck). HUC will sell the old bucket truck per the HUC surplus property policy. A motion was made by Commissioner Lenz, seconded by Vice President Wetterling to approve the advertisement for bids for 40' aerial man lift device with service body. Motion was unanimously carried. Steve Lancaster, Director Electric Division, presented an advertisement for bids for 1/0 15kV URD primary conductor. This is for 30,000' of wire for 2008 construction projects. A motion was made by Commissioner Lenz, seconded by Secretary Bordson to approve the advertisement for bids for 1/0 15kV URD primary conductor. Motion was unanimously carried. GM Kumm presented the policy on tuition reimbursement that was tabled from the October 31 and November 28 regular meeting. Changes requested from the Board at last month's Commission meeting have been incorporated into the new policy. After further discussion and a request of clarification, a motion was made by Commissioner Lenz, seconded by Secretary Bordson to approve the policy on tuition reimbursement, incorporating the request of clarification. Motion was unanimously carried. GM Kumm asked Jan Sifferath to make the necessary changes. John Webster, Director Gas Division, presented the BP Gas Service Agreement. Our attorney, Tom Gorack, has reviewed this agreement to make sure it is in compliance with MMGA. His suggestions have been incorporated in the addendum. A motion was made by Vice President Wettering, seconded by Commissioner Lenz to approve the BP Gas Service Agreement. Motion was unanimously carried. John Webster presented the' Northern Natural Gas Service Agreements: Contract 21279 and Contract 102733. These contracts are renewed every five years. After discussion, a motion was made by Commissioner Lenz, seconded by Vice President Wetterling to approve Northern Natural Gas Service Agreements: Contract 21279 and Contract 102733. Motion was unanimously carried. John Webster presented the 3M Service Agreement. This is an annual agreement and it is similar to the agreement we've had with 3M since the mid 60's. After discussion, a motion was made by Vice President Wetterling, seconded by Secretary Bordson to approve the 3M Service Agreement. Motion was unanimously carried. Jan Sifferath, Business Manager, presented the Midwest Dental Benefits Insurance. There is no premium increase and they will waive any increase in administrative fees for contract year 2008. A motion was made by Vice President Wetterling, seconded by Secretary Bordson to approve Midwest Dental Benefits Insurance. Motion was unanimously carried. Jan Sifferath presented the business insurance. Overall there is a decrease of $5,000. After discussion, a motion was made by Commissioner Lenz, seconded by Secretary Bordson to approve the business insurance. Motion was unanimously carried. Commissioner Lenz excused himself from the remainder of the meeting because of a previous commitment. Steve Lancaster presented requisition #002872 for ten 50 KVA padmounted transformers. These are inventory items. A motion was made by Secretary Bordson, seconded by Vice President Wetterling to approve requisition #002872 for ten 50 KVA padmounted transformers from Resco. Motion was unanimously carried. Division reports Gas — John Webster • Presented 3rd party damage review for 2007 • Presented future policy on service beyond city limits of Hutchinson Business — Jan Sifferath • In January HUC will retrofit lighting at Park Towers • Still doing training on new billing software • Auditors will be here end of January • Trane Heating Systems has been working on our heating system — working on developing a 2 -year maintenance agreement with them • Looking into our voluntary life plan and our short term disability policies — newer employees have questions Electric — Steve Lancaster • Unit 1 is back up and running Legal Update None Unfinished Business Approve Memorandum of Understand with MIRES (tabled from September 26, October 31, and November 28 regular meetings) New Business Commissioners were provided with a report on GM Kumm's evaluation. A motion was made by Secretary Bordson, seconded by Vice President Wetterling to accept GM Kumm's evaluation report and the associated recommendations. Motion was unanimously carried. There being no further business, a motion was made by Vice President Wetterling, seconded by Secretary Bordson to adjourn the meeting at 4:57 p.m. Motion was unanimously carried. Dwight Bordson, Secretary ATTEST o H. Walser, President 1 PHOENIX solutions co 6 Plasma Energy Corporation 12/06/07 Hutchinson Utilities Commission 225 Michigan ST SE Hutchinson, MN 55350 Attn: M. Kumm, General Manager Re: HUC as host of Demo of Plasma Gasification to Electricity 3324 Winpark Drive Minneapolis, MN 55427 • USA Telephone: 763.544.2721 Fax: 763.546.5617 www.phoenixsolutionsco.com Phoenix Solutions Co. is working to get a bill through the upcoming MN legislative session that will provide financial support for a demonstration of plasma gasification 4 electricity. The bill is presently authored by Rep. Paul Thissen as HF167. Sen. Dan Larson is the senate author as SF171. The bills were originally filed in the last session and we hope to get action in the session which begins, Feb. 12, '08. We have had several meetings this past fall with legislators who will be key to action. Rep. Alice Hausmann of St. Paul, who chairs the committee that will act on the '08 bonding bill, has suggested that the bonding bill could be a logical vehicle for action. Phoenix Solutions proposes that state money be provided to cover 50% of the cost of the demonstration of plasma gasification using renewable feedstock for production of electricity so that: a) Data is collected and made available to MN EPA about the air emissions and water discharges from this equipment that applies plasma technology. This in turn will allow the data to be used in permit applications. 50 YEARS AND GOING STRONG Thanks to our Customers, Employees, Suppliers b) Data is collected that characterizes the Syngas. This will allow appropriate decisions to be made by utilities about the use of gas turbines and combined cycle generating systems with Syngas from MN Renewable fuels. Very importantly, characterization will provide information necessary to the design of microbial cellulosic ethanol systems. Minnesota — made systems from plasma to ethanol. The bonding bill provides money to Minn. government units, commissions, etc. for specific projects. Monies for these projects are provided to the state by bonds that are sold by the state. We anticipate that the state will provide 50% of the demo cost. Phoenix Solutions Co. proposes that HUC be the site of the demo project. We propose that the demo project funds of $5,000,000 be provided as follows: State of MN $2,500,000 Phoenix Solutions $ 500,000 HUC $1,000,000 Other Sources (being determined) $1,000,000 $5,000,000 We estimate that these funds will be expended as follows: 1. Purchase from Phoenix Solutions Co. of the demo unit which will convert approximately 2,200 #'s /hr of renewable fuel such as wood chips, corn stover RDF to 1,600 scfm synthetic gas (hydrogen + carbon monoxide) with a heat content of approximately 145 BTU /scf. 50 YEARS AND GOING STRONG Thanks to our Customers, Employees, Suppliers $3,000,000 LJ 1 f 2. Purchase by HUC of the installation of the demo unit Additional Equipment for Emission control and electric generation Services and supplies for operation of the demo unit and associated equipment from HUC and Phoenix Solutions Co. for 5 campaigns Instrumentation and supplies for data logging Total � 11 111 $ 700,000 $ 600,000 200,000 $5,000,000 HUC can expect to have the use of the installed demo unit and the additional equipment for power production for the rest of its useful life. Phoenix Solutions Co. will have the use of the data and proposes to be able to bring prospective future owners to tour the unit, etc. Phoenix Solutions has been advised by Rep. Thissen that we should try to have our host site partner identified by early January, so that they can be written into the legislation. Accordingly, if this project is of interest to HUC, I ask that you provide a letter of intent expressing your interest and willingness to commit when legislation is in committee. FluiDyne Engineering Corp. dba Phoenix Solutions Co. is a MN Corp. with a distinguished 55 year record of business in Minn. The Co. has its corporate office in Crystal, MN and its extensive test facilities in Hutchinson, MN where we are an electric customer of Hutchinson Utilities Commission. The Minnesota payroll of Phoenix Solutions exceeds $1,800,000 annually and the Co. is a strong exporter of plasma equipment. The plasma gasification demonstration program we are proposing will be of substantial advantage to Hutchinson and its area and to the entire state of Minn. 50 YEARS AND GOING STRONG Thanks to our Customers, Employees, Suppliers To Hutchinson, in that it will start the region toward cellulosic ethanol using corn stover now an economically neglected agricultural waste. Also, it will provide data that gives a sound planning base for HUC to plan renewable fuels. For the state of Minnesota by providing date about plasma gasification emissions and its characterization for use as a gas turbine fuel and as a feedstock for microbial production of ethanol (celulosic ethanol). I expect that a firm declaration will be needed in March '08. Phoenix Solutions appreciates your interest and I will be pleased to visit and discuss this project with your staff, your board or if you like, community leaders. S J. Leonard Frame, Chairman 50 YEARS AND GOING STRONG Thanks to our Customers, Employees, Suppliers 1 C"1%11 �a E y a w 4- O cn ,� s c� > cn = _O CD 0 .0 >' U) .N C 4- � � m � .� i O uj L. to V � m E 0 W W p> U O 0 UQ oZ o� 0 W� o� a a � z 3 V c y g Z W� O� Z V o 04 [Ai O o� d F w A O N Ax u c �F a ca Ia. F O z 1 i4 1 1 o 04 [Ai O o� d F w A O N Ax u c �F a ca Ia. F O z [1 LJ� iJ 1 I I `� . '. �"' �.'r ��� +�� i � -' � I LJ I , 0 � J4� 1 J C i i I Send completed report to: Pay Equity Coordinator Department of Employee Relations 200 Centennial Building 658 Cedar Street (651) 259-3761 (Voice) St, Paul, MN 55155-1603 (651) 282,2699 (TOD) Part A: Jurisdiction Identification Jurisdiction' Hutchinson Utilities 225 Michigan Street SE Hutchinson, MN 55350 Contact: Human Resources Director Brenda Ewing Fax,. 3202344240 Email: bewing&l.hutchinson.mn.us Part S. Official Verification The job evaluation system used measured skill, effort responsibility and working conditions and the same systern was used for all classes of employees. ..... .... .. .. .. ... .. ........ The system used was: IC o n$ u I t a n t System --- (Specify � -w I .. . .......... . .......... Describe: -.66- n-*'s-u'lt-a*n'f Hay Guide Ghart : . .... ........ ............ . ...... . ....... .......... 0 Health Insurance benefits for male and female classes of comparable value have been evaluated and: ere is no difference and I ie 16 ckiiiiii—zir-e not at 6�cliia—avantaqe. 0 F] Information in this report is complete and accurate, 0 FJ-' The report includes all classes of employees over which the, , jurisdiction has final budgetary approval authority, Part 0: Total Payroll ......... . .... .......... ........ .......... is the annual payroll for the calendar year just ended December 31 I Department Use Only 0 Postmark Date of Report Jurisdiction ID Number Jurisdiction Type: Phone; (320) 234-4213 AT& W No salary ranges/performance differences. Leave blank unless BOTH of the following apply: a. Jurisdiction does not have a salary range for any job class. b. Upon request, jurisdiction will supply documentation showing that inequities between male and female classes are due to performance difference.s. Note: Do not include any documentation regarding performance with this form. An official notice has been posted at-, Hutchinson Utilities Commission Mein Office, (prominent location) informing employees that the I Pay Equity Implementation Report has been filed and is available able to employees upon request- A copy of the; notice has been sent to each exclusive representative, if any, and also to the public library. The report was approved by: Hutchinson Utilities Commission (governing body.) SMEMOM= Jurisdictiow Hutchinson Utilities 225 Michigan Street SE Contact; Brenda Ewing Human Resources Director 12/20/2007 Phone: (320) 234-4213 The statistical analysis, salary range and exceptional service pay test results are shown below. Part I is general inforrilation from your pay equity Report data. Parts 11, 111 and IV give you the test results, For more detail on each test, refer to the guidebook. 1. GENERAL JOB CLASS INFORMATION *AResult is % of Male: classes below predicted pay divided by % of female classes below predicted pay) T -TIEST RESULTS Degrees of reedom (DF) = 60 Value of T 0.239 a, AV% Jiff, in pay, from predicted pay for male jobs = 433 b. Avgi: diff. in pay from predicted pay for female jobs 471 Ill. SALARY RANGE TEST = 192.31 % (Result is A divided by 8) A. Avg, # of years to max salary for male jobs = Male Female Balanced All Job Classes Classes Classes class" # Job Classes 20 4 1 25 # Employees 47 4 56 Avg. Max. Monthly 1 Pay per Employee $ 4,644.09, $4,232.60 $4,907.77 III. STATISTICAL ANALYSIS TEST 1Vl016 Female A. UNDERPAYMENT RATIO _'130'0 Classes Classes a, # at or above Predicted Pay 7 2 b. # Below Predicted Pay 13 C. TOTAL 20 4 d, % Below Predicted Pay 65-00 50.00 (1) divided by r, = d) *AResult is % of Male: classes below predicted pay divided by % of female classes below predicted pay) T -TIEST RESULTS Degrees of reedom (DF) = 60 Value of T 0.239 a, AV% Jiff, in pay, from predicted pay for male jobs = 433 b. Avgi: diff. in pay from predicted pay for female jobs 471 Ill. SALARY RANGE TEST = 192.31 % (Result is A divided by 8) A. Avg, # of years to max salary for male jobs = 3;85. 13. Avg.,:# of years to max salary for female Jobs 2,00 IV. EXCEPTIONAL SERVICE PAY TEST 040 A. % of male classes receiving ESP 0.00 B. %of female classes receiving ESP 4.00 * (if 20% or less, test result will be 0.00) [l I 0 0) .0 " 0 g a a a ,0"10100288888 O'cocip4moo ti C!,RRRROIRq* q' at+s 0 ti U� V) 4 to to to 4, f S; N, �! 00 qti a t- of In 3 1,; 1 N cm N 4m co co 2 C4 a 2 2 a 2 a a a a 2 2 a a 2 a a M LL a a a a U 0 0 0 m Zi V) V W) to lti co fm U,) .Cris 11 Predicted Pay Report for Hutchinson Utilities 226 Michigan Stroot SE Case, HUC - December 2007 Job Total Nbr 4obs Title I Administrative Coordinator 2 customer Siervicle Rep 3 Operating:Engineer it 4 Purchasing Agent 5 Inventory Agent 6 Energy Conservation Admin 7 Operating, Englneer I 6 Meter Technician 11 9 Lineporson It 10 :Wewer/Serviceperson it 11 Accountant 12 Uneparson I I 1 14 Welde'r/SeNtwotson I is 'System Controller I 10 Maintenance Mechanic I 17 Maintenance O'ectriclan. 11 IS Maintenance Mechanic I 19 Maintenance Mechanic 11 20 Managers 21 Computer Systems Analyst 22 Crew Chiefs 23 Account Supervisor 24 Division directors 25 General ManageT Male Female Total Pay. EMPI Empl Empt Sex 0 1 1 F 0 2 2 F 3 0 3 M 0 1 1 F 208 0 1 M 208 0 1 M 208 0 6 M 208 $4,114.00 $4,347.17 $-23317 248 0 1 M 2 0 2 M 1 0 1 M 5 0 5 M '1 0 1 M %2 0 2 M 4 0 4 M 1 K19246 I M 282 $4279.00 1 M 282 0 1 M 2 0 2 M 342 $6,500,00 4 B 342 $5,166-00 I F IG 0 10 M 1 0 1 M 2 0 2 M 1 0 1 M Page 1 of 1 12/2012007 Work Max MO, PrOdleted Pay. Points Salary Pay Difference 123 $4,211.00 $3',08800 $223.00 123 $3,310.00 $3,988.00 $-678 00 123 $3,988,.00 $3,988.00 $0,00 208 $5,1615.60 $4;347.1"7 $818.83 208 56,166,00 $4,347;11 $618,83 208 $6�,166,0.0 $4,347.17 $a-ItO 208 $4,192.00 $4x347.17 $- 15ft17 208 $4,114.00 $4,347.17 $-23317 248 $4,340.00 $4,347,17 .$-7.17 208 $4,114.00 $4,347.17 $-233.17 245 $5,186:00 $4,168,77 $797:23 245 $4i567100 $4;368.77 $1198;23 246 $41284.60 $4,368,77 $-64-77 ZAS $4,284.00 $4,368.77 $ 44.77 262 $4,3$3.00 $4, 009,90 $,-225,99 202 K19246 k606.919 5-416.09 282 $4279.00 $41,606,99 $-32R .09 282 $4,119100 K608.99 282 $3,988400 $4,608,99 $-620.99 342 $6,500,00 $5,206,()0 $1,29440 342 $5,166-00 $5,208:00 $40.00 342 $5,210-00 $5,206,00 $4.00 342 $5,166.00 $5,206.00 S-40.00 479 $8,333,00 $8;108.37 $124,63 M VOWOO $16,809.70 $42170 I � L I LL a oc vz fueles IN] 'a 00 fueles IN] 'a Advertisement for Bids for ONE (1) 40 FOOT AERIAL MAN LIFT DEVICE WITH SERVICE BODY Hutchinson Utilities Commission Hutchinson, Minnesota Notice is hereby given that the Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota, hereinafter referred to as the Owner, will receive sealed Bids at the Hutchinson Utilities office until 10:00 a.m. on the 14th day of January, 2008, and will publicly open and read aloud such Bids on the following work and equipment: "ONE (1) 40 FOOT AERIAL MAN LIFT DEVICE WITH SERVICE BODY" Proposals shall be properly endorsed and delivered in an envelope marked, "ONE (1) 40 FOOT AERIAL MAN LIFT DEVICE WITH SERVICE BODY" and shall be addressed to: Hutchinson Utilities Commission of the City of Hutchinson, 225 Michigan Street SE, Hutchinson, Minnesota 55350. All proposals shall be submitted in duplicate on the Bidder's own letterhead in facsimile of the Proposal Form enclosed in the Specifications, or by utilizing the Proposal Form enclosed with the Specifications by typing the official name of the Bidder at the top of the form. No Bidder may withdraw his Bid or Proposal for a Period of thirty (30) days after date of opening of Bids. At the aforementioned time and place, or at such later time and Place as the Owner then may fix, the Owner will act upon Proposals received and with its sole discretion may award Contract(s) for the furnishing of said equipment. Specifications are available at the Office of the Hutchinson Utilities, 225 Michigan Street, Hutchinson, Minnesota 55350. The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota reserves the right to reject any and all bids, or bid irregularities. B DONALD H. WALSER President Date ti 2, C C ATTESTED By IGHT BORDSON , Secretary Date 2 -:2 L, Advertisement for Bids for 1/0 15kV URD PRIMARY CONDUCTOR Hutchinson Utilities Commission Hutchinson, Minnesota Notice is hereby given that the Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota, hereinafter referred to as the Owner, will receive sealed Bids at the Hutchinson Utilities office until 11:00 a.m. on the 14th day of January, 2008, and will publicly open and read aloud such Bids on the following equipment: "1/0 15kV URD PRIMARY CONDUCTOR" Proposals shall be properly endorsed and delivered in an envelope marked "1/0 15kV URD PRIMARY CONDUCTOR" and shall be addressed to: Hutchinson Utilities Commission of the City of Hutchinson, 225 Michigan Street SE, Hutchinson, Minnesota 55350. All proposals shall be submitted in duplicate on the Bidder's own letterhead. No Bidder may withdraw his Bid or Proposal for a Period of thirty (30) days after date of opening of Bids. At the aforementioned time and place, or at such later time and Place as the Owner then may fix, the Owner will act upon Proposals received and with its sole discretion may award Contract(s) for the furnishing of said equipment. Specifications and Plans are available at the Office of the Hutchinson Utilities, 225 Michigan Street, Hutchinson, Minnesota 55350. The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota reserves the right to reject any and all bids, or bid irregularities. By -Q AJ JLS -V DONALD H. WALSER , President Date ^� ATTESTED DWIGHT RDSON , Secretary Date -.--�- -p� -7 C Training and Education Assistance The Commission encourages its employees to seek individual and career development through job - related training and education. The Commission provides financial assistance for successful completion of qualifying programs and courses. Tuition, registration fees and other course - related fees would be reimbursed after successful completion of a course. To apply for education assistance, employees must submit a request to their Director, Manager, or Supervisor no later than five working days prior to registration. The Director, Manager or Supervisor and the General Manager must approve the course, seminar, or program. Only courses that are job - related and provide potential for career advancement with the Utilities are eligible for reimbursement. The following criteria must be met: • The maximum amount of reimbursement will be $6,000 per calendar year. If coursework or tuition exceeds this amount, then the Director or General Manager will approach the Commission to request a waiver. To request a waiver, the coursework must be directly related to the employee's position within the company, or if the degree the employee is seeking is beneficial to the company; in other words, it would be difficult to hire someone who already has that degree. • Reimbursement is contingent on receiving a "pass" or minimum grade of "C ". • Employee must study on their own time. Use of HUC computers is allowed in accordance with the IT policy. • An employee must remain employed at the Utilities for twenty four (24) calendar months after completion of a course, or must repay to the Utilities all reimbursements received for the course. NATURAL GAS SERVICES ADDENDUM This Natural Gas Services Addendum ( "Services Addendum ") dated December 19, 2007 supplements, amends and is subject to a Base Contract for Sale and Purchase of Natural Gas between BP Canada Energy Marketing Corp ( "BP ") and Hutchinson Utilities Commission, City of Hutchinson, Minnesota ( "Hutchinson "), dated January 1, 2004, pursuant to which BP delivers and sells Gas to Hutchinson (`Base Contract"). Gas Supply Services. 1. BP agrees to deliver and sell and Hutchinson agrees to purchase and receive Firm Gas (baseload) in accordance with the following terms: a. All monthly Firm Gas baseload will be priced based on market conditions at the time Hutchinson makes their monthly Firm Gas baseload purchases. Hutchinson will have the flexibility to purchase monthly firm baseload gas by month or mul&month purchases. b. Hutchinson shall have a choice of pricing mechanisms including but not limited to; monthly index, daily index, fixed price, and various structured products, for supply purchases from BP, subject to any applicable credit requirements being satisfied. 2. Except as may otherwise be agreed by the Parties and subject to paragraph 1, provided that Hutchinson advises BP of its requirement for any Day not less than twenty four (24) hours prior to the start of the Day, BP will sell and deliver Firm (Variable Quantity) Gas to Hutchinson from the Northern Natural or Northern Border systems, after taking into account Firm ( Baseload) Quantities delivered pursuant to paragraph 1(a), up to the level of Hutchinson's firm takeaway entitlement from Northern Natural or Northern Border ( "Firm Variable Gas "). Except as otherwise agreed, Hutchinson shall pay for Firm Variable Gas delivered on each Day at the applicable price, as published for the Day by platt's "Gas Daily" in its "Daily Price Survey ($/MMBtu)" for " Northern, Ventura" "Midpoint" (gaily Index "), plus $0.0075/Dth. If Hutchinson requests that BP deliver Firm Variable Gas less than twenty four (24) hours prior to the start of any Day, BP's obligation to deliver such Gas shall be on a reasonable commercial efforts basis only. Hutchinson shall pay for Firm Variable Gas delivered on each Day at Daily Index for the delivery Day, plus $0.12 /dth. 3. If, not less than twenty four (24) hours prior to the start of any Day, Hutchinson requests that BP repurchase Firm (Fixed quantity) or Firm (Variable Quantity) Gas delivered by BP during that Day that is excess to Hutchinson's requirements, BP shall re- purchase such Gas from Hutchinson. BP shall pay Hutchinson for any such Gas at Daily Index for the delivery Day, minus $0.01 /dth. If, within twenty four (24) hours prior to the start of any Day, Hutchinson requests that BP repurchase Firm (Fixed Quantity) or Firm (Variable Quantity) Gas delivered by BP during that Day that is excess to Hutchinson's requirements, BP will re- purchase such Gas from Hutchinson on a reasonable commercial efforts basis. BP shall pay Hutchinson for any such Gas at Daily Index for the delivery Day, minus $0.12 /dth. 4. Subject to Hutchinson's obligations in paragraph 1, nothing in this Services Addendum precludes Hutchinson from purchasing its Gas requirements from third parties, including third party supply purchases from Minnesota Municipal Gas Agency. 5. Except in circumstances where it is not reasonably possible to do so, BP shall confirm each purchase and sale transaction undertaken pursuant to this Services Addendum by sending Hutchinson a Transaction Confirmation in accordance with the confirmation procedure of the Base Contract. Management Services. 6. During the term of this Addendum, BP shall provide the following Gas management services ( "Management Services ") to Hutchinson: (a) acting as agent for Hutchinson in respect of the operation of Hutchinson's Northern Natural TF contracts #21279 and #102733 ( "NN Contracts ") for the remaining term thereof, to include, without limitation, preparing and submitting all daily, monthly and real time change nominations. (b) acting as agent for Hutchinson in the negotiation of transportation/storage discounts; (c) providing Hutchinson with timely copies of all nominations made or communicated by BP pursuant to (a); monitoring receipts of daily Gas supplies and Hutchinson's daily consumption of Gas and defining related imbalances; (d) providing Hutchinson with confirmation services on NBPL related to third party shippers delivering to the NBPL/Hutchinson Pipeline Interconnect. (e) assisting Hutchinson in managing and optimizing on- system Gas inventories and resolving system imbalances; (f) providing Hutchinson with relevant current and historical Gas industry market information to assist Hutchinson in making cost effective Gas purchasing decisions; (g) as requested by Hutchinson, assisting Hutchinson in analyzing and solving problems relating to supply procurement, transportation, dispatching and accounting; (h) subject to applicable credit requirements being satisfied and any further contractual documentation that may be required, providing Hutchinson with financial risk management and structured products with respect to gas purchased by Hutchinson from BP or any other third party; (i) advising Hutchinson in a timely manner of any critical day events on pipeline systems or any other industry developments or circumstances of which BP has become aware that may have a material effect on the supply or transportation of Gas to Hutchinson; (j) providing Hutchinson with 24 -hour, seven days per week toll free 888 telephone access to a BP employee that will receive and implement any supply adjustments requested by Hutchinson and are acceptable to the requirements of the relevant Transporter; and, (k) maintaining ongoing familiarity with the terms of any necessary documentation, including contracts and material amendments that may occur from time to time, relating to the services to be provided hereunder and any pipeline tariffs applicable to the Hutchinson's operations, ( "Supporting Documentatiod'), and using all reasonable efforts to assist Hutchinson in achieving maximum benefit in respect thereof. 2 Optimization of Linepack on Hutchinson S stem. 7. BP may optimize any line pack available on the Hutchinson transmission system. The availability of line pack shall be determined in accordance with parameters determined by Hutchinson. Any optimization revenues earned shall be equally shared between the parties. Hutchinson Obligations. 8. Hutchinson shall: (a) as relevant, and as requested by BP, provide BP with required Supporting Documentation, including, without limitation, information, as required, in respect of any third party supply, including, without limitation, the name and particulars of each third party, the third party Duns number and any applicable upstream contract numbers; however, notwithstanding the foregoing, Hutchinson shall not be required to produce or provide to BP any of the following documents: (1) the Prepaid Gas Purchase and Sale Agreement between the Midwest Consortium of Municipal Utilities and Morgan Stanley Capital Group inc., a Delaware Corporation ( "MSCG "), and any successors and /or assignees of those entities; (2) the Gas Supply Contract between the Minnesota Municipal Gas Authority and the Midwest Consortium of Municipal Utilities, and any successors or assignees of those entities; (3) the Gas Supply Contract between the Minnesota Municipal Gas Authority and Hutchinson, and any successors and assignees of those entities; and (4) any attachments, exhibits, amendments, addendum, additions to, modifications of, or any other witing or document of any type pertaining to the foregoing documents; (b) provide BP with all required information related to third party shippers imbalances on the Hutchinson Pipeline for BP to manage the NBPL OBA and optimize the Hutchinson Pipeline Linepack; (c) take all actions in a timely manner required to designate BP as its agent to the extent necessary to enable BP to provide Management Services; and, (d) subject to paragraph 10, be responsible for all demand, commodity and other charges pursuant to the NN Contracts. Service Fees. 9. During the term of this Service Addendum, for each MMBtu of Gas purchased by Hutchinson from a third party supplier and delivered to Hutchinson in a month, Hutchinson shall pay BP a third party supply handling fee of $0.01/MMBtu ( "Supply Handling Fee "). Penalties and Forfeitures. 10. BP and Hutchinson shall work together to minimize any penalties or forfeitures that may arise in respect of Hutchinson transportation for which BP provides Management Services. Each party shall be responsible for Imbalance Charges that result from the actions, errors or omissions of that party. BP shall not be responsible for Imbalance Charges to the extent that BP acts reasonably on information provided by Hutchinson or on instructions from Hutchinson. BP shall be liable for Imbalance Charges incurred as a result of BP failing to nominate, schedule and/or confirm the quantity Gas in accordance with Hutchinson's instructions and published Transporter standards and agrees to pay any unauthorized Gas usage charges incurred by reason of BP's failure to perform Management Services in accordance with the terms of this Services Addendum. Term 11. This Services Addendum shall be in effect during the period of January 1, 2008 through December 31, 2010, and shall continue on a year by year basis thereafter unless terminated on not less than ninety (90) days prior written notice given by one party to the other, to have effect at the end of any such annual period; provided that any obligation to make payment hereunder shall survive the termination of this Services Addendum. This Services Addendum supersedes and replaces in its entirety the Services Addendum between the parties with an initial term of January 1, 2007 through December 31, 2007, which is hereby terminated effective end of day December 31, 2007. Conflict 12. In the event of a conflict between the provisions of this Services Addendum and the Base Contract, the provisions of this Services Addendum shall govern. INTENDING TO BE LEGALLY BOUND, the parties have executed this Services Addendum as an addendum to the Base Contract through their duly authorized representatives effective as of the date specified above. BP Canada Energy Marketing Corp. L-02 Name: Title: Confirmed as of the date first above written: Hutchinso Utilities Commission By: Name: r1 i— ,( j r 2 1'�7 f S v Title: �, 4 Northern Natural Gas •r:onueMe,w expiovxoidxoscous�xv Northern Natural Gas Company Amendment to TF Throughput Service Agreement Date: 11/30/2007 Shipper Name: HUTCHINSON UTILITY COMMISSION Contract No.: 21279 (Agreement) Amendment No.: 25 WHEREAS, the Agreement provides that if no notice to terminate the Agreement has been received by Northern twelve (12) months prior to the termination date of the Agreement, a quantity equal to the Total Aggregate MDQ under the Agreement will be automatically rolled over for a term equal to the original term of the Agreement. No notice to terminate was received by Northern; therefore, the entitlement will be extended as set forth herein. NOW THEREFORE, the Agreement is amended as follows: 1. The volume, term, and/or point provisions are amended as follows: a. The term of the Agreement is extended through 10/31/2013. b. The contract maximum daily quantities, primary receipt and delivery points, and terms are set forth on Appendices "A" and 'B." c. The Appendices to the Agreement are deleted in their entirety and the Appendices "A" and "B" attached hereto and incorporated herein by reference are substituted therefor. All references to Appendix "A" or Appendix "B" shall be deemed to refer to the Appendices attached hereto. 2. The parties agree that a facsimile or other electronic version of this document, when properly executed and transmitted, shall be considered for all purposes to be an original document, and shall be deemed for• all purposes to be signed and constitute a binding agreement. The entire agreement must be faxed or transmitted to Northern. Upon Northern's acceptance and execution, an executed copy will be returned via FAX to the number appearing on the faxed offer or such other number as directed or otherwise electronically transmitted. 3. This Agreement, as amended, constitutes the entire agreement between the parties with respect to the subject matter of this Agreement and shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. No promises, agreements or- warranties additional to this Agreement other than as may be contained in Northern's FERC Gas Tariff will be deemed to be a part of this Agreement nor will any alteration, amendment or- modification be effective unless confirmed in writing by the parties. The effective date of this Amendment is 11/01/2008. Except as amended herein, all provisions of the Agreement are hereby confirmed by the parties to be and remain in full force and effect. NORTHERN NATURAL GAS COMPANY By: Gary Hoogeveen Title: VP Customer Service Date: 11/30/2007 HUTCHINSON UTILITY COMMISSION By: "'t'% Title: P Q s i ae_ -t Date: n N N N O� r. N N l� C G C z z z a � U � Q� ch a .c � � w O O U 1O 1� v a M r, N _O °o C H a 0 U U N A 'ab a 0 0 i �I o a > r. Y� A o wl � u N �Y A N W O N a 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C. 0 0 0 o 0 0 0 ,.4 ..4 N O N 0 a O O O O 0 0 0 0 °o °0 00 00 IS) H d a A d O z O A V w A f# 0 L CIO A x � o b o N O N 0 a N N N O O O N t� o O O O O O O O O z z z U � aoi e o o a 0 o � S 0 a A 0 0 0 0 0 0 0 o e O O O � H � 0 �H F o M Ia z CIO N o O w 0 00 w a w 0 a Northern Natural Gas � 4iMM11pCN1lxFlOY NttMxO] tOMMNY Northern Natural Gas Company Amendment to TFX Throughput Service Agreement Date: 12/18/2007 Shipper Name: HUTCHINSON UTILITY COMMISSION Contract No,.: 102733 (Agreement) Amendment No..: 16 WHEREAS, the entitlement on this Agreement terminates 10/31/2008.. Shipper desires to extend the Agreement for five (5) years at the maximum tariff rates in accordance with the Right of First Refusal (ROFR) process set forth in Northern's FERC Gas Tariff. NOW THEREFORE, the Agreement is amended as follows: 1. The volume, term, and/or point provisions are amended as follows: a. The term of the Agreement is extended through 10/31/2011 b. The contract maximum daily quantities, primary receipt and delivery points, and terms are set forth on Appendices "A" and "B." c. The Appendices to the Agreement are deleted in their entirety and the Appendices "A" and "B" attached hereto and incorporated herein by reference are substituted therefor. All references to Appendix "A" or Appendix "B" shall be deemed to refer to the Appendices attached hereto. 2. The patties agree that a facsimile or other electronic version of this document, when properly executed and transmitted, shall be considered for all purposes to be an original document, and shall be deemed for all purposes to be signed and constitute a binding agreement. The entire agreement must be faxed or transmitted to Northern. Upon Northern's acceptance and execution, an executed copy will be returned via FAX to the number appearing on the faxed offer or such other number as directed or otherwise electronically transmitted. 3. This Agreement, as amended, constitutes the entire agreement between the parties with respect to the subject matter of this Agreement and shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. No promises, agreements or warranties additional to this Agreement other than as may be contained in Northern's FERC Gas Tariff will be deemed to be a part of this Agreement nor will any alteration, amendment or modification be effective unless confirmed in writing by the parties. The effective date of this Amendment is 11/01/2008. Except as amended herein, all provisions of the Agreement are hereby confirmed by the parties to be and remain in full force and effect. NORTHERN NATURAL GAS COMPANY By: Gary Hoogeveen Title: VP Customer Service Date: 12/18/2007 HUTCH SON UTILITY COMMISSION Y Title: , r e k t Date: M V1 �O M M r+ l� M N M O l� G G O zzz a� }N k N U a � V Q � � k :d Q w z 0 0 U O U N a M 0 N M O O 00 °o N O A N 0 U U N A 'eb 0 II o s. u .o U d ,A bA O O wl � w N A � w y A I N W O N a @ A 2 b R k k k 7 % 2 / A ) ) k � § k $ k/ k / k f $ � § ■ @ ■ @ $ . @ ■ 9 ■ E m @ m / @ 2 $ R m R m E ■ R £ R m R ■ E m n % � £ R m R @ @ tn a m R R R ■ 2 m a kn � 7 V @ \ / / 2 GO § « R E / > § k \ � n % � £ M U1 �O M M � l� M N M O t� O O C z z z 4Y U � aai on a "o w A A m O 9 o a a tn W) kn Q O O k to o � tn 0 M 0 tn � h kn te) in 0 0 0 n h te) h � � 0 F �a H� o � F" O x N � o p to a � w 0 a O W M 9 U � M N O N-j• 0 r. •1 U W o a a tn W) kn Q O O k to o � tn 0 M 0 tn � h kn te) in 0 0 0 n h te) h � � 0 F �a H� o � F" O x N � o p to a � w 0 a eeWN brIlIT1E$ Hutchinson Utilities Commission AGREEMENT THIS AGREEMENT is made by and between Hutchinson Utilities Commission, hereinafter "HUC" and Minnesota Mining and Manufacturing Co., Hereinafter "3M ", on the following terms and conditions. WHEREAS, 3M desires to purchase, and HUC would provide, Firm Gas for use at 3M's Hutchinson North and South Plants; and, WHEREAS, 3M does acknowledge that HUC will, in reliance upon 225 Michigan Street this Agreement, enter into an agreement to provide Firm Gas and Hutchinson Transportation. Minnesota 55350 WHEREAS, 3M does acknowledge that rates shall be adjusted according to any change in the CPI -U from the previous full calendar year; provided, however, that such charge shall never be less than $0.85. CPI -U shall mean the annual average Consumer Price Index — All Urban Consumers as published by the United States Department of Labor, Bureau of Statistics, Washington, D.C. 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, 2008, at 9:00 a.m. and terminating on January 1, 2009, at 9:00 a.m. 3M shall pay HUC by the following schedule during the term of this Agreement: (All rates expressed as $ /Dth) Flow Through All Gas Meters Tel 320- 587 -4746 Fax 320 - 587 -4721 Commodity Index Donald Walser President Transportation $0.88 (Adjusted for CPI -U change from 2006 to David Wetterling 2007) Vice President Monthly Peak Dwight Bordson Day Demand $0.00 /MMBtu Secretary Craig Lenz Commissioner 2. Hutchinson agrees to provide daily swing supply to 3M Robert Hantge at the applicable price, as published for the day by Platt's Commissioner "Gas Daily" in its "Daily Price Survey ($ /Dth)" for "Northern, Michael Kumm Ventura" "Midpoint" ( "Daily Index ") plus /minus $0.01. Swing General Manager supply is defined as supply increases or decreases, from Tel 320- 587 -4746 Fax 320 - 587 -4721 contracted levels, nominated at least 24 hours prior to the start of the gas day. 3. Hutchinson shall provide 3M with real -time balancing, based on the following: Best Efforts Realtime Swing nominated less than 24 hours prior to the end of the gas day on a best efforts basis, priced at the applicable price, as published for the day by Platt's "Gas Daily" in its "Daily Price Survey ($ /Dth)" for "Northern, Ventura" "Midpoint" ( "Daily Index "), plus /minus $0.15. 4. Payment is due from 3M on or before the tenth day following the date the bill is issued by HUC. 5. 3M shall provide to HUC, by the end of the15th day of the month prior to gas flow, the base load level of natural gas required for the following month. In the event HUC has not received the base load 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 base load level for the following month. 6. 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. 7. 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: L-4— 2 6, f� 7 Dated: Hutchin.s6p Utilities Commission B: Y YV eS r �)e k Minnesota Mining & Manufacturing By: I I August 31, 2007 Jan Sifferath Hutchinson Utilities 225 Michigan Street SE Hutchinson, MN 55350 RE: Hutchinson Utilities MDB Group Number 308 Contract Term: January 1, 2008 — December 31, 2008 Dear Jan: Midwest Dental Benefits has been pleased to provide dental benefits to your employees for this past coverage year. We look forward to the renewal of your dental program for the above noted Contract Effective Date. In reviewing Hutchinson Utilities experience for this past year, we have determined the budget projections currently established do not need to be adjusted for the next contract year. Using the most recent 12 months of paid claims experience (through August 2007) we are projecting paid claims of $39,590.00 for 2008. The corresponding funding rates may remain at the current $30.50 for single coverage and $74.70 for family coverage. Midwest Dental Benefits appreciates your business and will waive any increase in administrative fee for the next contract year. Any changes made to rates or plan design will become effective on January 1, 2008. If you would like to renew your contract with Midwest Dental Benefits for the next contract year, please sign and date below. If you would like to take a look at changing your current plan design, please give me a call and we can discuss some options. We thank you for your business and look forward to servicing the fine employees of Hutchinson Utilities for the next contract period. Sincerely, App ved by: Michelle Hilger Director of Sales and Marketing Dated: (✓—�, '� �, D 0 Property Equipment Breakdown - LMCIT Equipment Breakdown - AIG Jurisdictional /loss control inspection fee Inland Marine Crime Included Municipal Liability Commercial Auto Workers' Compensation before audit Petrofund Included Open Meeting Law Compensation Agreement (3 yr. 2007- 08 -09) Grand Total $35,885 $793 $65,064 $7,125 $2,438 $78,448 $8,079 $47,056 $1,251 $20,000 $278,149 $43,455 $837 $64,400 $7,125 $2,334 Included $75,521 $7,087 $51,097 Included $1,196 $20,000 $273,052 Note: Workers' Compensation premium is subject to change at the time of audit based on actual exposures. G 0 LL Z _0 W Z 0 U) G v W H _J I— Z ''0^ vI T_Z i V ti N 00 N O O O z C O • �J G 0 L) W _W M F' � LA J r 1- �C9Z 2 r-� ZZti^ Z 0 aU)1i°n _Z Z Z N N () M C7 V G V N F- C N M c m =N =a u.. 6 F- a r CO O r O O O tG cO c (Y) ((O O (6 cc r W o OD co 0w .. co m c Lu00L'Y wo.Aa� L .Q Q 'Z) vJ O � o O O H LO O E d CL cu U W y O V O . O CL c D V O ao 0 LO o Oo cr7 N O 0 N O u.i co a- 0 0 v 00 y CO d � d Z � � Y 1 LO U) z I O LO 00 0 O N N 0 N N O O El- -S N O N O O LO r r 00 N ED m X �U H � CZ U) � O � ^I O N � � N � d Y W c6 f6 p � � H N W LU a W cn J � o J U) a z Z O _ p m U N >. m Z o CL Vice President Wetterling, seconded by Secretary Bordson to write -off the accrued medical fund as discussed. Motion was unanimously carried. After further discussion, a motion was made by Vice President Wetterling, seconded by Commissioner Lenz to approve the financial statements/ budget year -to -date. Motion was unanimously carried. The HUC Data Practices Act and Public Records Request Policy, tabled from November 28, 2007 regular meeting, was tabled once more. GM Kumm presented updates and changes to the 2008 budget. After discussion, a motion was made by Commissioner Lenz, seconded by Secretary Bordson to approve the 2008 budget, noting the changes made by staff. Motion was unanimously carried. Brenda Ewing, Director of Human Resources, was welcomed to the meeting. Ms. Ewing presented the 2007 Pay Equity Report for approval. This report is submitted to the MN Department of Employee Relations indicating that HUC is in compliance with the pay equity requirements. A motion was made by Vice President Wetterling, seconded by Commissioner Lenz to approve the Pay Equity Report, adding the total payroll to the report once those figures become available. Motion was unanimously carried. Steve Lancaster, Director Electric Division, presented an advertisement for bids for 40' aerial man lift device with service body (replaces bucket truck). HUC will sell the old bucket truck per the HUC surplus property policy. A motion was made by Commissioner Lenz, seconded by Vice President Wetterling to approve the advertisement for bids for 40' aerial man lift device with service body. Motion was unanimously carried. Steve Lancaster, Director Electric Division, presented an advertisement for bids for 1/0 15kV URD primary conductor. This is for 30,000' of wire for 2008 construction projects. A motion was made by Commissioner Lenz, seconded by Secretary Bordson to approve the advertisement for bids for 1/0 15kV URD primary conductor. Motion was unanimously carried. GM Kumm presented the policy on tuition reimbursement that was tabled from the October 31 and November 28 regular meeting. Changes requested from the Board at last month's Commission meeting have been incorporated into the new policy. After further discussion and a request of clarification, a motion was made by Commissioner Lenz, seconded by Secretary Bordson to approve the policy on tuition reimbursement, incorporating the request of clarification. Motion was unanimously carried. GM Kumm asked Jan Sifferath to make the necessary changes. John Webster, Director Gas Division, presented the BP Gas Service Agreement. Our attorney, Tom Gorack, has reviewed this agreement to make sure it is in compliance with MMGA. His suggestions have been incorporated in the addendum. A motion was made by Vice President Wettering, seconded by Commissioner Lenz to approve the BP Gas Service Agreement. Motion was unanimously carried. John Webster presented the Northern Natural Gas Service Agreements: Contract 21279 and Contract 102733. These contracts are renewed every five years. After discussion, a motion was made by Commissioner Lenz, seconded by Vice President Wetterling to approve Northern Natural Gas Service Agreements: Contract 21279 and Contract 102733. Motion was unanimously carried. John Webster presented the 3M Service Agreement. This is an annual agreement and it is similar to the agreement we've had with 3M since the mid 60's. After discussion, a motion was made by Vice President Wetterling, seconded by Secretary Bordson to approve the 3M Service Agreement. Motion was unanimously carried. Jan Sifferath, Business Manager, presented the Midwest Dental Benefits Insurance. There is no premium increase and they will waive any increase in administrative fees for contract year 2008. A motion was made by Vice President Wetterling, seconded by Secretary Bordson to approve Midwest Dental Benefits Insurance. Motion was unanimously carried. Jan Sifferath presented the business insurance. Overall there is a decrease of $5,000. After discussion, a motion was made by Commissioner Lenz, seconded by Secretary Bordson to approve the business insurance. Motion was unanimously carried. Commissioner Lenz excused himself from the remainder of the meeting because of a previous commitment. Steve Lancaster presented requisition #002872 for ten 50 KVA padmounted transformers. These are inventory items. A motion was made by Secretary Bordson, seconded by Vice President Wetterling to approve requisition #002872 for ten 50 KVA padmounted transformers from Resco. Motion was unanimously carried. Division reports Gas — John Webster • Presented 3rd party damage review for 2007 • Presented future policy on service beyond city limits of Hutchinson Business — Jan Sifferath • In January HUC will retrofit lighting at Park Towers • Still doing training on new billing software • Auditors will be here end of January • Trane Heating Systems has been working on our heating system — working on developing a 2 -year maintenance agreement with them • Looking into our voluntary life plan and our short term disability policies — newer employees have questions Electric — Steve Lancaster • Unit 1 is back up and running Legal Update None Unfinished Business Approve Memorandum of Understand with MIRES (tabled from September 26, October 31, and November 28 regular meetings) New Business Commissioners were provided with a report on GM Kumm's evaluation. A motion was made by Secretary Bordson, seconded by Vice President Wetterling to accept GM Kumm's evaluation report and the associated recommendations. Motion was unanimously carried. There being no further business, a motion was made by Vice President Wetterling, seconded by Secretary Bordson to adjourn the meeting at 4:57 p.m. Motion was unanimously carried. ATTEST Donald H. Walser, President Dwight Bordson, Secretary