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09-05-2008 HUCMSpecial Meeting September 5, 2008 Members present: President Donald H. Walser; Secretary Dwight Bordson; Commissioner Hantge, General Manager Michael Kumm Members absent: Vice President David Wetterling; Commission Craig Lenz; Attorney Marc Sebora President Walser called the meeting to order at 8:00 a.m. The Indemnity Agreement with KC Companies, Inc. was presented. Attorney Sebora has reviewed agreement and inserted a hold harmless clause as it relates to soil conditions/deficiencypossible deficiency of soil corrections.If HUC is found to be at See fault for damages resulting from soil conditions/deficiency, HUC will be responsible for minutes of Sept. 24, the cost of both parties’legal bills. Likewise, if KC Companies, Inc is found to be at fault 2008 for damages other than soil conditions/deficiency, KC Companies, Inc. will be responsible for the cost of both parties’ legal bills. Chosen Valley Testing, Inc. has issued their soil analysis and the footings for the building have started and payment has been made to KC Companies, Inc. After further discussion, a motion was made by Commissioner Hantge, seconded by Secretary Bordson granting authorization to sign indemnity agreement with KC Companies, Inc. Motion was unanimously carried. Long term suppliers agreement with Border States was presented. This agreement will be in effect for one year and offers HUC better pricing on underground primary, underground secondary, overhead, specified streetlight and miscellaneous inventory items. After discussion a motion was made by Secretary Bordson, seconded by Commissioner Hantge to approve long term suppliers agreement with Border States. Motion was unanimously carried. Long term suppliers agreement with J. T. Services. This agreement will be in effect for one year and offers HUC better pricing on specified streetlight inventory items. After discussion a motion was made by Secretary Bordson, seconded by Commissioner Hantge to approve long term suppliers agreement with J. T. Services. Motion was unanimously carried. Unfinished Business None New Business Commissioner Hantge asked about the possibility of HUC being involved in providing natural gas for in-house vehicles as well as vehicles in the community that operate with natural gas. After discussion it was decided to include this topic in our business plan, look at the market in Hutchinson, then meet and decide what to do. There being no further business, a motion was made by Commissioner Hantge, seconded by Secretary Bordson to adjourn the meeting at 8:20 a.m. Motion was unanimously carried. ______________________ Dwight Bordson, Secretary ATTEST:_______________________ Donald H. Walser, President Special Meeting September 5, 2008 Members present: President Donald H. Walser; Secretary Dwight Bordson; Commissioner Hantge, General Manager Michael Kumm Members absent: Vice President David Wetterling; Commission Craig Lenz; Attorney Marc Sebora President Walser called the meeting to order at 8:00 a.m. (See minutes of 9- 24 -08) Added: possible deficiency of soil corrections The Inde nity Agreement with KC Companies, Inc. was presented. Attorney Sebora has revie d agreement and inserted a hold harmless clause as it relates to soil conditions 'If HUG us fetind to be at fault for damages Fesulting fFern sefl -condetmons/deficiency, I lUE) will bee responsible feF t ie eest of both paFties' legal bill& Likewise, if-KCr-Gofftpenies, Ine is found te be at fault for da-ma-gees 9theF than soil coma kvlf� paFtiera ' Chosen Valley Testing, Inc. has issued their soil analysis and the footings for the building have started and payment has been made to KC Companies, Inc. After further discussion, a motion was made by Commissioner Hantge, seconded by Secretary Bordson granting authorization to sign indemnity agreement with KC Companies, Inc. Motion was unanimously carried. Long term suppliers agreement with Border States was presented. This agreement will be in effect for one year and offers HUC better pricing on underground primary, underground secondary, overhead, specified streetlight and miscellaneous inventory items. After discussion a motion was made by Secretary Bordson, seconded by Commissioner Hantge to approve long term suppliers agreement with Border States. Motion was unanimously carried. Long term suppliers agreement with J. T. Services. This agreement will be in effect for one year and offers HUC better pricing on specified streetlight inventory items. After discussion a motion was made by Secretary Bordson, seconded by Commissioner Hantge to approve long term suppliers agreement with J. T. Services. Motion was unanimously carried. Unfinished Business None New Business Commissioner Hantge asked about the possibility of HUC being involved in providing natural gas for in -house vehicles as well as vehicles in the community that operate with natural gas. After discussion it was decided to include this topic in our business plan, look at the market in Hutchinson, then meet and decide what to do. There being no further business, a motion was made by Commissioner Hantge, seconded by Secretary Bordson to adjourn the meeting at 8:20 a.m. Motion was unanimously carried. Dwight EJ6rd s n, Secretary ATTEST: Donald H. Walser, President 1 INDEMNITY AGREEMENT _ THIS INDEMNITY AGREEMENT (the "Agreement ") is made and entered into this ,5 day of September, 2008, by and between THE CITY OF HUTCHINSON by and through the HUTCHINSON UTILITIES COMMISSION ( "Commission ") and KC COMPANIES, INC. ( "KC "). The parties recite and declare as follows: A. KC has entered into an agreement with the Commission to construct a storage building for use by the Hutchinson Utilities Commission in Hutchinson, Minnesota consisting of a one story slab on grade building, loading dock and associated parking area (the "Project "). B. It has come to the attention of KC and the Commission that soils located on the property on which the Project ( "Project Property ") is to be constructed include organic silt, soft clay and saturated material which may not be capable of supporting the Project, which may result in settling, cracking and deflection of the building causing uneven settling. C. KC has obtained advice from Independent Testing Technologies, Inc., which recommends removal of a substantial amount of soil under the building, footings, loading dock and parking area. D. The Commission has reviewed the recommendation of Independent Testing Technologies, Inc. and does not wish to proceed with its recommendations for correction of the soil. E. The Commission has retained Chosen Valley Testing, Inc., which has reviewed the soil conditions of the Project Property and has made recommendations which do not require removal of a substantial amount of soil. F. KC is concerned with the suitability of the recommendations of Chosen Valley Testing, Inc. and the Commission wishes to provide assurances to KC so it may proceed with construction of the Project utilizing the recommendations of Chosen Valley Testing, Inc. G. As an inducement by the Commission to KC and as a condition precedent to KC proceeding with construction of the Project, the Commission has offered to indemnify and hold KC harmless from certain claims described in this Agreement. NOW, THEREFORE, in consideration of KC's proceeding with construction of the Project, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. The Commission hereby agrees to indemnify and hold KC harmless including each of KC's officers, directors, employees, agents, shareholders and attorneys and their respective successors and assigns, from and against any and all liability, loss, costs, damage and expense resulting from, related to or arising out of the soil conditions and possible deficiency of soil corrections as has been recommended by Chosen Valley Testing, Inc., including all obligation, responsibility, risk, damage, cost of remediation, repair and replacement to any portion of the Project including, but not limited to damage to KC's completed work arising out of settling, uneven settling, deflection, cracking and moisture infiltration which may undermine the structural integrity of the Project. The indemnity and hold harmless provided by the Commission to KC includes all of its subcontractors and the insurers of KC and the subcontractors. The Commission further waives the right to require correction of KC's work or to make any breach of warranty claim arising out of or related to the soil conditions on the Project Property. 2. The Commission's obligations under this Agreement will not be terminated, released, discharged, extinguished or otherwise affected by any other agreement between the Commission and KC and this Agreement may be enforced by KC at any time. 3. This Agreement shall be binding upon the successors and assigns of the Commission and shall inure to the benefit of KC and its successors and assigns. 4. The release indemnification and hold harmless provisions of this agreement shall be void and of no effect unless and until any and all claims for loss or liability arising out of this project have been determined by the District Court of McLeod County, Minnesota, to be the result of and caused by the soil conditions and possible deficiency of soil corrections made to the property. If the Court determines damages were incurred due to soil conditions /deficiency of soil corrections, Hutchinson Utilities Commission shall be responsible for the costs of both parties' respective attorneys, agents, experts and other witnesses and other persons, firms or corporations hired or retained by each party. If the Court determines damages were incurred by something other than soil conditions /deficiency of soil corrections, KC shall be responsible for the costs of both parties' respective attorneys, agents, experts and other witnesses and other persons, firms or corporations hired or retained by each party. — f h IN WITNESS WHEREOF, the parties have executed this Agreement this day of September, 2008. COMMISSION HUTCHINSON UTILITIES COMMISSION By C Donald Walser Its President 4 By Michael Kumm Its General Manager PA KC KC COMPANIES, INC. Kent Marthaler Its President 1 0 s ® TM Document G701 -2001 Change Order PROJECT (Name and address): Hutchinson Utilities 2008 Facility Addition 225 Michigan St SE Hutchinson, MN 55350 TO CONTRACTOR (Name and address): KC Companies, Inc 734 First St S Waite Park, MN 56387 CHANGE ORDER NUMBER: 001 DATE: August 27, 2008 ARCHITECT'S PROJECT NUMBER: 0804 CONTRACT DATE: June 04, 2008 CONTRACT FOR: General Construction OWNER: ❑ ARCHITECT: L►r CONTRACTOR: ❑ FIELD: ❑ OTHER: ❑ THE CONTRACT IS CHANGED AS FOLLOWS: (Include, where applicable, any undisputed amount attributable to previously executed Construction Change Directives) Proposal Request #2 Provide site drainage at pavement areas (add $16,894.00) Proposal Request #3 Provide soil correction per Chosen Valley Testing (add $13,910.00) Proposal Request #4 Provide fill at building area prior to ftg. /fndn. excavation per Chosen Valley Testing (add $4,400) The original Contract Sum was $ 574,466.00 The net change by previously authorized Change Orders $ 0.00 The Contract Sum prior to this Change Order was $ 574,466.00 The Contract Sum will be increased by this Change Order in the amount of $ 35,204 The new Contract Sum including this Change Order will be $ 609,670.00 The Contract Time will be increased by five ( 5 ) days. The date of Substantial Completion as of the date of this Change Order therefore is December 7, 2008 NOTE: This Change Order does not include changes in the Contract Sum, Contract Time or Guaranteed Maximum Price which have been authorized by Construction Change Directive until the cost and time have been agreed upon by both the Owner and Contractor, in which case a Change Order is executed to supersede the Construction Change Directive. NOT VALID UNTIL SIGNED BY THE ARCHITECT, CONTRACTOR AND OWNER. Haugen Architecture, Inc. KC Companies, Inc Hutchinson Utilities Commision of the City of Hutchinson ARCHITECT (Firm name) CONTRACTOR (Firm name) OWNER (Firm name) 13 Washington Ave West, Suite 203, 734 First St S, Waite Park, MN 56387 225 Michigan St. SE, Hutchinson, MN Hutchinson, MN 55350 55350 ADD:1L ADDRESS A RESS jj.-, W 1 BY (Signature) BY (Signature) � 1::& 1, BY (Signature) Jim Haugen Jeff Baggenstoss Don Walser, President (Typed name) (Typed name) (Typed name) August 27, 2008 September 5, 2008 DATE DATE DATE f AIA Document G701TM — 2001. Copyright © 1979, 1987, 2000 and 2001 by The American Institute of Architects. All rights reserved. WARNING: This AIA' Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA" Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 13:55:36 on 08/27/2008 under Order No. 1000368608_1 which expires on 8/22/2009, and is not for resale. User Notes: (2381466488) "m ICI Builders & Developers Website: KCCom ponies Inc.com WAITE PARK 734 First Street South Waite Park, MN 56387 Phone: 320/217 -2640 Fax: 320/217 -2642 CROSSLAKE P.O. Box 217 Crosslake, MN 56442 Phone: 218/692 -6640 Fax: 218/692-6642 Fully Insured & Bonded MN Builder Lic. #20517204 Experience Quality Building Better Communities August 5, 2008 Mr. Jim Haugen Haugen Architecture, Inc. 13 Washington Avenue West, Suite 203 Hutchinson, MN 55350 RE: 2008 Facility Addition Hutchinson Utilities Hutchinson, MN KCCI Proposal Request #2 REVISED Dear Mr. Haugen: Please see our cost proposal for providing site drainage due to the existing soil conditions. This cost includes furnishing and installing 1,320 lineal feet of 4" perforated drain tile piping w /sock that will be connected to the existing three (3) catch basins and the new 10" storm sewer. This cost also includes a 24" x 24" 1 -1/2" diameter rock bed for the pipe to be placed. This cost was calculated per the owner's request. 1 Builders & Developers Website: KCCompanies Inc.com WAITE PARK 734 First Street South Waite Park, MN 56387 J Phone: 320/217 -2640 Fax: 320/217 -2642 CROSSLAKE P.O. Box 217 Crosslake, MN 56442 Phone: 218/692 -6640 Fax: 218/692-6642 Fully Insured & Bonded MN Builder Lic. #20517204 Experience Quality Building Better Communities Services 01030 Supervision Labor: 16 Hours @ $30 /Hr: $ 480.00 02200 Excavation: Juul Contracting: $14,726.00 Subtotal $ 15,206.00 Contractors 10% Overhead & Profit: $ 1,521.00 Additional Bond Requirement: 167.00 Total $ 16,894.00 Two (2) additional working days will be required to complete this change. Please review the above information and advise our office as to your decision. If accepted, please sign, date and return this proposal back to our office as soon as possible, so that we may proceed. Sincerely, Jeff Baggenstoss Vice President of Operations KC Companies, Inc. Owner's Acceptance Printed Name Date Position JUUL CONTRACTING COMPANY www.juulcontracting.com (320) 587- 2989/Call #320 -683 -8749 Fax (320) 587 -0954 �/ BAV Address ` -- CHANGE ORDIF atom DA .Joe NAME I LOCATION JOB DESCRIPTION• �"' // fp..L �4i . S ���/J % ��. 00 IV /c. Zz�cy.y u 2 7 `` � W10� X- Z'DEOT9 LQ so,/'-0-00 THIS ESTIMATE IS FOR COMPLETMO THE JOB AS OESCRISED ABOVE_ R IS BASED ON OUR EVALUATION AND DOES NOT INCLUDE MATT PRICE INCREASES OR ADORIONAL LABOR AND MATERIALS WHICH MAY HE REQUIRED SHOULD UN - OR=EEN MOM AS OR ADVERSE WEATHER CONDITIONS ARJSE AFTER THE WORK HAS STARTED. YOU WILL BE INVOICED WHEN THE JOB IS COMPLETED. PAYMENT IS DUE UPON REiCFJPT OF THE INVOICF- FINANCE CHAmE OF 1 129E PER MONTH, [ANNUAL FEE OF 189]. WILL BE CHARGED ON OUTSTANDING BALANCES OF MORE THAN 30 DAYS TO 39Vd WOO 9NIlOV81NOO -inn 0960-- L85 - -0ZE Lb :ST 8002 /bt /L0 AUG-'27-2008(WED) 10;50 (FRX)2512126 P.0021005 Builders & Developers Website: KCComponleslnc.com WAITE PARK 734 First Street South Waite Park MN 56387 Phone: 320/217 -2640 Fax: 320/217 -2642 CROSSLAKE P©. Box 217 Crosslake, MN 56442 Phone- 218/692-6640 Fa>c 218/692 -6642 Fully Insured & Bonded MN Builder Lic. #20517204 Experience I,i arity BuiVing Better Communities August 5, 2008 Mr, Jim Haugen Haugen Architecture, Inc. 13 Washington Avenue West, Suite 203 Hutchinson, MN 55350 RE., 2008 Facility Addition Hutchlnson Utilities Hutchinson, MN KCCI Proposal Request #3 — Amendment (From previously approved PR#3) Dear Mr. Haugen: Please see our cost proposal for providing soil correction services based upon recommendations by Haugen Architecture, Inc,, letter dated July 31, 2008, and the owner's testing agency, Chosen Valley Testing, Inc., letter dated July 29, 2008. This cost Includes soil corrections and testing of the sub - footings at the loading dock area, approximately 45' long x 6' wide, along the South side of the building using engineered rock fill material for backfill and compaction, sheet rolling and compaction of the excavated footing cavity before placement of footings, testing of sheet rolled existing soils below sub- footings along the whole perimeter of the building and sheet roll /test of paved areas prior to placement of 6" aggregate base and 6" of concrete pavement. Geo- textile fabric was not Included for the paved area. AUG= 27- 2008(WED) 10;50 (FAX)2512126 P.003 /005 I Builders & Developers Website; Momponiesinc.com WAITE PARK 734 First Street South Waite Park, MN 56387 Phone: 320/217 -2640 Fax: 320/217.2642 CROSSLAKE PO. Box 217 Crosslake, MN 56442 Phone: 218/692-6640 Fax: 218/692 -6642 Fully Insured & Bonded MN Builder Lic. #20517204 Experience QtyAty Buiiding Better Communfries This cost does not Include any additional soil corrections of poor soils encountered for footings, building pad area and sub base (sub -cut) areas of the paved areas that may or may not be encountered during excavation. Furthermore, the "Floating" of the building area and paved areas as recommended by Chosen Valley Testing, Inc., Is not typical construction practices; therefore the Owner Will Accept All Responsibility and Risk of potential settling of foundations /building structures and /or cracking of concrete surfaces that are a result of these conditions, Therefore, KC Companies, Inc., will not be held responsible for any damages, removals, replacement and /or repairs of any sort as a result of this acceptance by the owner of the "Floating" of the soils for the building and paved areas. All compaction testing of the existing soils will be compacted to a minimum density of 95% of cohesion soil materials per specifications and as recommended by Chosen Valley Testing, Inc. This cost was calculated per the Owner /Architect request. Services 01030 Supervision Labor: 24 Hours @ $30 /Hr: $ 720.00 02200 Excavation: Juul Contracting; S11,800.0 Subtotal $ 12,520.00 Contractors 10% Overhead & Profit: $ 1,252.00 Additional Bond Requirement: 138.00 Total $ 13,910.00 Three (3) additional working days will be required to complete this change. Please review the above Information and advise our office as to your decision, If accepted, please sign, date and return this proposal back to our office as soon as possible, so that we may proceed. RU6= 27- 2008(WED) 10 :50 (FRX)2512126 P -004 /005 Builders & Developers, Website: KCComponles Inc.com WAITE PARK 734 First Street South Waite Park, MN 56387 Phone: 3201217 -2640 Fax 320/217 -2642 CROSSLAKE P.O. Box 217 Crosslake, MN 56442 Phone: 218/692-6640 Fa>c 218/692 -6642 Fully Insured & Bonded MN Builder Lic. #20517204 Experience k 1Qtyartty Buf0in,q Better Communities Sincerely, Jeff Baggenstoss Vice President of Operations KC Companies, Inc, Owner's Acceptance Date Printed Name Position Attachments: Haugen Architecture, Inc., letter dated July 31, 2008 Chosen Valley Testing, Inc,, letter dated July 29, 2008 Cc: Jan Sifferath, Hutchinson Utilities Commission RUG= 27- 2008(WED) 10:50 r�.05•Z008t1UE) 11:19 08/05/2008 88112 370-'597''0954 y, CTINQ COMPANY .IUU�• CONTRA V,,,,,„ �,,�uulaontmoun9•com 13701 559.29191Coll Four 19to1 �.09i4 (FAX)2512126 (F00f-lif164 JUUL CONTRACTING COM jog DUSCKIPMONS P. 005/005 PAGE: 01 CHANGE ORDER +. 7 i1 -Q mom i J� 011,OCIITION 1 r 0 of _ e I a n ev�LUAM4 P440 oo� nar y IuK TNT cos .0 Balm= Alt Brwul� ua�aoeew µe FM CWKX" TM �0e MOW PMT 11* WOW W j �' � IR 0►IS UPON �� �T1NN io F1W�1� Q� � 111111 � YOU is MR of 1� MVI �1WIA� ON Ol1TSfAN�IN4 wJ�t�c.� 1 1 1 1 r, RUG- 06- 2008(WED) 11:36 (FAX)2512126 P. 002/004 i CONIPANTE4, IhC. i i ;� i '' : i 1•:I Webs€te; KCCompaniesimc,com WAITE PARK 734 First Street South Waite Park, MN 56387 Phone; 320/217 -2640 Far. 320/217.2642 CROSSLAKE PO Box 217 Crosslake, MN 56442 Phone: 218/692 -6640 Fax: 218/692 -6642 Fully Insured & Bonded MN Builder Lie. #20517204 Exyerlence gyaCiry BuiVing Better Communities August 5, 2008 Mr, Jim Haugen Haugen Architecture, Inc. 13 Washington Avenue West, Suite 203 Hutchinson, MN 55350 RE: 2008 Facility Addition Hutchinson Utilities Hutchinson, MN KCCi Proposal Request #4 Dear Mr. Haugen: Please see our cost proposal for providing additional excavation services that were not included with Proposal Request Number #3 to complete the building pad construction as discussed this morning at the site by Boog, of Juul Construction, Jason Pelowski, of KC Companies, Inc., Jim Haugen, of Haugen Architecture, Inc„ .and Jan 5ifferath and Jason Sturges of Hutchinson Utilities Commission, This work Includes backfllllng and compaction of existing material In the previously excavated footing/foundation trench and re- excavating the footing /foundation trench as discussed and agreed to at the site this morning after all material passes compaction at a minimum of 95% compaction of cohesion materials, 'HUG-06-2008(WED) 11:37 (FAX)2512126 P. 003/004 Builders & Developers Website; Momponleslnc.com WAITE PARK 734 First Street South Waite Park MN 56387 Phone: 320/217 -2640 Fax: 3201217 -2642 CROSSLAKE P.O. Box 217 Cnosslake, MN 56442 Phone: 218/692 -6640 Fax 2181692 -6642 Fully Insured & Bonded MN Builder Lle. #20517204 6?"fe?bG8 rfty Buf(ding Better Commu -Me s Services 02200 Excavation: Juul Contracting: $3,960.00 Subtotal $ 3,960.00 Contractors 10% Overhead & Profit; $ 396.00 Additional Bond Requirement: S 44.00 Total $ 4,400.00 No additional working days and /or supervision will be required to complete this change if this request can be approved asap. Please review the above Information and advise our office as to your decision. If accepted, please sign, date and return this proposal back to our office as soon as possible, so that we may proceed. Vice President of Operations KC Companies, Inc. Owner's Acceptance pate Printed Name Ciii Position e4^4rQ n"JL' 1 T .m AUG- H- 2008(WEN 11.37 (FAX)2512126 P. 0o4 /004 08/06/2006 10:21 320 - -SR7- -0964 JUUL CONTRACTING COMPANY www, juuloo mtraoting. com (320) 807•,M81 ON 032040 s741 FOX (380) 5874"04 JLILJL CONTRACTING COM WAGE 01 CHANGE ORDER > who =i ,0 THM W"UA^M LS FM COMPLEMO TW sloe AS OMMM AGM. IT 18 BASED ON cuts WAWATI N AND DOES NOT INCLUDE MATER PFWR YOBS OitAd QXWAL LA9M AM MA'{Sti" VtlF M MAY IW WO $N'iUW UNFOMEEN PRCl1LEM9 ORAWNtlE WEATtERCONOMONSAMNAFMIMVVMMMITARUD YOU ww. e� NWacEI� Vlfi �i i11!! das 1Qi CV�AA+LN1 �a PAVMl r Z DI.Z UM R WWf CF YM (1NV01 X f INS OMW o!" ! lg% PgR MOM f ANNUAL F8E OP 18%I WLL M C AMW 4N dl WANN4 ON AMM CR Ni1t911'E'f11M$C V AYL To: Commissioners Mike Kumm Marc Sebora From: Roberta Yates Purchasing Agent Subject: Long Term Supplier Agreement Date: September 2, 2008 have reviewed the quotations for five subclasses of inventory items for the Electric Division. Based on total cost, past performance and continuous efficiency processes, I am recommending that HUC enter into a long term supplier agreement with Border States Electric for underground primary, underground secondary, overhead, specified streetlight and electric miscellaneous inventory items. am also recommending HUC enters into a long term supplier agreement with JT Services for specified streetlight inventory items. In an attempt to reduce inventory levels, increase the efficiency of placing orders, eliminate the redundant quoting process and reduce lead times, I am suggesting that approval for each inventory requisition no longer be required by management. Each department budgets annually for these items based on previous year's expenditures and each department may review expenditures throughout the year. Long Term Supplier Agreement Parties: This Agreement is made between Border States Electric (BSE) and Hutchinson Utilities Commission (HUC), and shall be effective as of the date of execution by both parties. Purpose: This Agreement is to confirm that BSE will provide specified products or materials referenced in the Awarded Parts Listing to HUC at the quoted price. In turn, HUC agrees to purchase these products from BSE for a period of one year unless, in the opinion of Hutchinson Utilities Commission, supplier cannot meet reasonable delivery dock dates. Term: The term of this Agreement will be for a period of one year, commencing on date of execution by both parties. The term of this Agreement will be extended automatically, in increments of one year, unless either party gives written notice of termination no less than thirty (30) days prior to expiration for the then - current term. Termination: Either party may terminate Agreement at any time, without cause, with thirty (30) days written notification. Amendments: The Part List may be amended or added to at any time by written agreement between HUC and Supplier. Items may be removed from the Part List at anytime by HUC with written notification. Price changes based on raw material price will be reviewed periodically and the parties will determine whether a price increase or decrease is appropriate. Explanations for price increases will be documented and given to HUC. Inventory: Supplier will maintain adequate inventory to supply parts and product to HUC. HUC will not be required to purchase a specified amount of inventory from the supplier during this Agreement. In cases of Agreement termination, obsolescence, or discontinued usage of a part, HUC will not be responsible for supplier inventories unless part was built to HUC prints. Supplier shall report current stock status of items on Part List to HUC as requested. Upon request, HUC will provide supplier approximate usage of parts, thereby enabling the supplier to be in a reasonable position to meet purchase order quantities. Delivery: Supplier shall normally ship parts from stock within two or three working days after ordered or released unless otherwise requested and agreed. Supplier agrees to achieve and maintain a 98% on time delivery percentage by end of second quarter of Agreement. If a delivery is not expected to be made on- time, supplier will notify HUC and will take all reasonable steps at its own cost to expedite delivery. If a delivery is not made on -time or if notice is given that a delivery is expected to be late, HUC may cancel the order immediately by delivering notice of the cancellation to supplier. If a delivery is not on time and is canceled by HUC, HUC will be free to purchase the late products from a third party. Cost Reduction: Parties will meet for quarterly reviews throughout the year. Discussions will include identifying cost reduction ideas and goals. Date Date AY, Signature Signature J_'- Printed Name Printed Name 176 h,� (� Title Title ()gyre s r'd �-- , j Company Company /(l1.►tCt.I k50— (,1 1(1tics no1M 1-, . Long Term Supplier Agreement 915108 ry 1 1 W O c a� V N O O i0 N LO (D C CO N N •- E d t1 'i V V F- CL 4) N N i L � d� _ R am Q L N O V Cl) W N O (D Q E OU C L Ch � �' M 6FT 0) M M Efi OR rn M b Y O N m L = Q. p N 0 V N N _ E �O, O Q R7 0 &w O = = N m = O . a 0 I_ v, W _ � O C) is N .F+ L Q E 0 ID E Q 0 Q E 0 E�,o Q E 0 v) � =�=0m0.0 °C0 c c m> E c c c a.0c >dE°.bgcmEE) �, p-N ° 0�- Cl) E ° d O N O N > d O a CO) > O- fn i. M 0 E U W ow .0=�Q �• dm oa`�mr G. Q. E —'E=o _ O " d W E .°.� QV r' O = O 0 0 0 UQcA20 N 4 C v o rn CV v M W C � M M M ou 'L. d IL co .� _ o = o c N L cq > > O Q� w O c a� N O O (D C N N •- E d t1 'i V V CL 4) N N L � d� _ R am Q L N O O N m L = Q. p N 0 V N N _ E �O, O Q R7 0 &w O = = N m = O . a 0 t t _ � � is N .F+ L ID 0 (D E�,o �0Eca= v) w �° =�=0m0.0 °C0 c or- tm0) m> E Sao a.0c >dE°.bgcmEE) �, p-N ° 0�- Cl) E ° d O N O N > d O a CO) > O- fn i. M 0 E U W ow .0=�Q �• dm oa`�mr G. Q. E —'E=o _ O " d N N E .°.� QV c V M N QJ O = m C 0 0 0 UQcA20 O 0== y F- 00M0NF- C v o Long Term Supplier Agreement Parties: This Agreement is made between JT Services and Hutchinson Utilities Commission (HUC), and shall be effective as of the date of execution by both parties. Purpose: This Agreement is to confirm that JT Services will provide specified products or materials referenced in the Awarded Parts Listing to HUC at the quoted price. In turn, HUC agrees to purchase these products from JT Services for a period of one year unless, in the opinion of Hutchinson Utilities Commission, supplier cannot meet reasonable delivery dock dates. Term: The term of this Agreement will be for a period of one year, commencing on date of execution by both parties. The term of this Agreement will be extended automatically, in increments of one year, unless either party gives written notice of termination no less than thirty (30) days prior to expiration for the then - current term. Termination: Either party may terminate Agreement at any time, without cause, with thirty (30) days written notification. Amendments: The Part List may be amended or added to at any time by written agreement between HUC and Supplier. Items may be removed from the Part List at anytime by HUC with written notification. Price changes based on raw material price will be reviewed periodically and the parties will determine whether a price increase or decrease is appropriate. Explanations for price increases will be documented and given to HUC. Inventory: Supplier will maintain adequate inventory to supply parts and product to HUC. HUC will not be required to purchase a specified amount of inventory from the supplier during this Agreement. In cases of Agreement termination, obsolescence, or discontinued usage of a part, HUC will not be responsible for supplier inventories unless part was built to HUC prints. Supplier shall report current stock status of items on Part List to HUC as requested. Upon request, HUC will provide supplier approximate usage of parts, thereby enabling the supplier to be in a reasonable position to meet purchase order quantities. Delivery: Supplier shall normally ship parts from stock within two or three working days after ordered or released unless otherwise requested and agreed. Supplier agrees to achieve and maintain a 98% on time delivery percentage by end of second quarter of Agreement. If a delivery is not expected to be made on- time, supplier will notify HUC and will take all reasonable steps at its own cost to expedite delivery. If a delivery is not made on -time or if notice is given that a delivery is expected to be late, HUC may cancel the order immediately by delivering notice of the cancellation to supplier. If a delivery is not on time and is canceled by HUC, HUC will be free to purchase the late products from a third party. Cost Reduction: Parties will meet for quarterly reviews throughout the year. Discussions will include identifying cost reduction ideas and goals. 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