10-29-2008 HUCMRegular Meeting
October 29, 2008
Members present: President Donald H. Walser; Vice President David Wetterling;
Secretary Dwight Bordson; Commissioner Craig Lenz; Attorney Marc Sebora; General
Manager Michael Kumm
Member absent: Commissioner Robert Hantge
President Walser called the meeting to order at 3:00 p.m.
The minutes of the September 24, 2008 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.
GM Kumm presented the September 2008 payables. After discussion, a motion was
made by Commissioner Lenz, seconded by Secretary Bordson to ratify the payment of
bills in the amount of $4,029,708.73 (detailed listing in payables book). Motion was
unanimously carried.
Mark Schnobrich, City Forester, was welcomed to the meeting. Mr. Schnobrich thanked
the board for HUC’s donation of $30,000 for the Energy Tree Planting project. He gave
a presentation on how successful the 2008 program was for the City of Hutchinson. Of
the 384 trees planted, 233 were purchased with the donated funds from HUC. On our
behalf Mr. Schnobrich will submit the Tree Line USA application to the National Arbor
Day Foundation which will award HUC as a Tree Line USA Utility.
Mr. Schnobrich also talked about the Emerald Ash Borer insect that is causing a
disease in ash trees. He presented a vial of what the insect looks like and what to look
for if the insect has invaded any ash trees.
GM Kumm presented the financial statements/budget year-to-date. After 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.
GM Kumm also mentioned that the 2009 budget will be presented for discussion at the
November meeting, special meeting to review it in early December, then at the regular
December meeting for approval.
Changes to the policies and requirements booklet were presented. After discussion, it
was decided to re-do the section on ‘explanation of billing procedure’ to make it clearer
as it relates to late payment charges and dishonored check charges. This will come
back to the board at the November meeting.
GM Kumm presented the “Red Flags Rule” (Identity Theft Prevention Program). It is
required by the Federal Trade Commission (FTC) that government entities have a
procedure in place to stop the spread of identity theft. The effective date on this was
November 1, 2008, but a six-month delay was announced by the FTC. After discussion,
it was decided to bring to the board HUC’s internal procedures at the April Commission
meeting to show that HUC is in compliance by the May 2009 effective date.
GM Kumm presented the changes to our purchasing policy. Legislature has changed
the purchasing limit which allows us to change our formal bid process from $50,000 to
$100,000. After discussion a motion was made by Commissioner Lenz, seconded by
Secretary Bordson to approve the changes to our purchasing policy. Motion was
unanimously carried.
Discussion was held on changes at the HATS facility (Hutchinson Area Transportation
Services). Because of City budget issues, they are cutting back on services they
provide HUC. City will provide HUC with a list of services they will no longer provide and
HUC will develop specifications for these services and go out for bids. After discussion it
was decided that these specifications be presented at the November Commission
meeting for discussion. The changes at the HATS facility go into effect January 2009.
The November and December regular commissioner meeting dates were rescheduled.
A motion was made by Vice President Wetterling, seconded by Secretary Bordson to:
reschedule the November regular commission meeting for November 25, 2008 at
3:00 p.m.
reschedule the December regular commission meeting for December 30, 2008 at
3:00 p.m.
Also a special commission meeting was scheduled for December 15, 2008 at
3:00 p.m. to approve the 2009 budget.
Motion was unanimously carried.
A motion was made by Commissioner Lenz, seconded by Vice President Wetterling to
approve the recognition / holiday party scheduled for December 12, 2008 as an open
meeting. Motion was unanimously carried.
Division reports
Business – Jan Sifferath
Awarded contract for snow removal to L&J Tree Service – 2 year contract
th
Meeting scheduled with Drop & Go shipping on November 17 to see if he
can process our mailing of the utility billing statements.
HSA meeting held with employees
Construction of the new inventory building has stopped because of the
collapse of the building. Insurance companies will handle the matter of the
collapse; in the interim the carpenters will work on the skin on the CF
building.
Electric – Steve Lancaster
3/4 of the powerstats have been removed – should be completed by the
rd
3 week in November
New meter tech has been hired and is being trained on the removal of the
powerstats
Transformer work has been started
Gas – John Webster
Natural gas service line will go all the way out to Saint Anastasia’s
Cemetery on Highway 15 North.
Legal Update
Nothing to report
Unfinished Business
None
New Business
Integrated Resources Plan and Staffing Levels:
Discussion was held on the possibility of hiring a project manager as we get
closer to deciding what direction we will go in developing HUC renewable energy
plans.
There being no further business, a motion was made by Commissioner Lenz , seconded
by Secretary Bordson to adjourn the meeting at 4:30 p.m. Motion was unanimously
carried.
______________________
Dwight Bordson, Secretary
ATTEST:__________________________
Donald H. Walser, President
Regular Meeting
October 29, 2008
Members present: President Donald H. Walser; Vice President David Wetterling;
Secretary Dwight Bordson; Commissioner Craig Lenz; Attorney Marc Sebora; General
Manager Michael Kumm
Member absent: Commissioner Robert Hantge
President Walser called the meeting to order at 3:00 p.m.
The minutes of the September 24, 2008 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.
GM Kumm presented the September 2008 payables. After discussion, a motion was
made by Commissioner Lenz, seconded by Secretary Bordson to ratify the payment of
bills in the amount of $4,029,708.73 (detailed listing in payables book). Motion was
unanimously carried.
Mark Schnobrich, City Forester, was welcomed to the meeting. Mr. Schnobrich thanked
the board for RUC's donation of $30,000 for the Energy Tree Planting project. He gave
a presentation on how successful the 2008 program was for the City of Hutchinson. Of
the 384 trees planted, 233 were purchased with the donated funds from HUC. On our
behalf Mr. Schnobrich will submit the Tree Line USA application to the National Arbor
Day Foundation which will award HUC as a Tree Line USA Utility.
Mr. Schnobrich also talked about the Emerald Ash Borer insect that is causing a
disease in ash trees. He presented a vial of what the insect looks like and what to look
for if the insect has invaded any ash trees.
GM Kumm presented the financial statements /budget year -to -date. After 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.
GM Kumm also mentioned that the 2009 budget will be presented for discussion at the
November meeting, special meeting to review it in early December, then at the regular
December meeting for approval.
Changes to the policies and requirements booklet were presented. After discussion, it
was decided to re -do the section on 'explanation of billing procedure' to make it clearer
as it relates to late payment charges and dishonored check charges. This will come
back to the board at the November meeting.
GM Kumm presented the "Red Flags Rule" (Identity Theft Prevention Program). It is
required by the Federal Trade Commission (FTC) that government entities have a
procedure in place to stop the spread of identity theft. The effective date on this was
November 1, 2008, but a six -month delay was announced by the FTC. After discussion,
it was decided to bring to the board HUC's internal procedures at the April Commission
meeting to show that HUC is in compliance by the May 2009 effective date.
GM Kumm presented the changes to our purchasing policy. Legislature has changed
the purchasing limit which allows us to change our formal bid process from $50,000 to
$100,000. After discussion a motion was made by Commissioner Lenz, seconded by
Secretary Bordson to approve the changes to our purchasing policy. Motion was
unanimously carried.
Discussion was held on changes at the HATS facility (Hutchinson Area Transportation
Services). Because of City budget issues, they are cutting back on services they
provide HUC. City will provide HUC with a list of services they will no longer provide and
HUC will develop specifications for these services and go out for bids. After discussion it
was decided that these specifications be presented at the November Commission
meeting for discussion. The changes at the HATS facility go into effect January 2009.
The November and December regular commissioner meeting dates were rescheduled.
A motion was made by Vice President Wetterling, seconded by Secretary Bordson to:
• reschedule the November regular commission meeting for November 25, 2008 at
3 :00 p.m.
• reschedule the December regular commission meeting for December 30, 2008 at
3:00 p.m.
• Also a special commission meeting was scheduled for December 15, 2008 at
3:00 p.m. to approve the 2009 budget.
Motion was unanimously carried.
A motion was made by Commissioner Lenz, seconded by Vice President Wetterling to
approve the recognition / holiday party scheduled for December 12, 2008 as an open
meeting. Motion was unanimously carried.
Division reports
Business — Jan Sifferath
• Awarded contract for snow removal to L &J Tree Service — 2 year contract
• Meeting scheduled with Drop & Go shipping on November 171h to see if he
can process our mailing of the utility billing statements.
• HSA meeting held with employees
• Construction of the new inventory building has stopped because of the
collapse of the building. Insurance companies will handle the matter of the
collapse; in the interim the carpenters will work on the skin on the CF
building.
Electric — Steve Lancaster
• 3/4 of the powerstats have been removed — should be completed by the
3 d week in November
• New meter tech has been hired and is being trained on the removal of the
powerstats
• Transformer work has been started
Gas — John Webster
• Natural gas service line will go all the way out to Saint Anastasia's
Cemetery on Highway 15 North.
Legal Update
Nothing to report
Unfinished Business
None
New Business
Integrated Resources Plan and Staffing Levels:
Discussion was held on the possibility of hiring a project manager as we get
closer to deciding what direction we will go in developing HUC renewable energy
plans.
There being no further business, a motion was made by Commissioner Lenz, seconded
by Secretary Bordson to adjourn the meeting at 4:30 p.m. Motion was unanimously
carried.
ATTEST: E—t,7--V 1 ja,tl�
Donald H. Walser, President
7
Dwight ordson, Secretary
t
1
CITY OF HUTCHINSON
Year 2008
Energy Tree Planting Report
WHAT A DIFFERENCE A TREE MAKES!
Sponsored by:
j Hutchinson Utilities Commission
Hutchinson, Minnesota
Summary
The Year 2008 was the 14th season that trees have been planted for energy
conservation in Hutchinson. Each tree that is planted is added to our tree
inventory system, allowing us to monitor the trees over time. Replacements
are done for any tree that does not make it through the f irst year. This
program is made available to all residents who have property meeting the
requirements for energy trees.
A total of 384 trees were planted or distributed this year from the
downtown area to new residential developments. We were able to reach 32
homes with 50 energy trees. 233 trees were actually planted utilizing Utility
Commission dollars, while the other trees were procured via Airport funds
and Developer funds. All planting costs, along with additional costs for
concurrent Tree Inventory data collection, were covered with Utility Grant
Dollars.
The Hutchinson Utilities Commission's support for the Year 2008 Energy
Tree Planting Project was the catalyst by which the City of Hutchinson is
able to continue a community forestry program. Cities across the state are
beginning to realize that the planting of trees, along with the shading of
homes and streets by way of planting trees, is a positive local endeavor.
The Hutchinson City Tree Board and the citizens of Hutchinson thank you
for your cooperative participation in improving the lives of residents here
and statewide by setting an example of how to do environmental
improvement through energy tree planting.
The Forestry Department again worked cooperatively with the Hutchinson
school district to conduct an Arbor Day program at Park Elementary School,
which involved 3rd grade classes. They attended a lyceum where songs were
sung and seedlings were distributed to all students while promoting the
benefits of trees and the community forest. Immanuel Lutheran, Maplewood
Academy, New Discovery, St. Anastasia, and Word of Life schools were
recipients of some of the 551 White Spruce seedlings distributed this year
from the Utility Commission.
t
I
PLANTING TREES
IS A CONTINUAL PROJECT!
F.
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THIS IS WHY WE PLANT TREES!
f BECAUSE THERE LS A
CONTINUAL NEED!
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Tree Expenses / Distribution
Item
67 Hardwods
166 Hardwoods
551 Seedlings
Bachman's Wholesale
Bailey's Nursery
Itasca Greenhouse
Utilities Funds
Public Facilities & Rights -of -Way
Energy Trees on private property
Seedlings given to 3rd graders
Other Funds
Airport
Public Facilities & Rights -of -Way
Developments
Total
Cost
$ 5,286.30
$ 8,505.84
$ 513.72
$13,792.14
(Trees — 43% of costs)
183 trees
50 trees
551 seedlings
784
32 trees
86 trees
33 trees
151
935 trees /seedlings
Planting Personnel Contracted $ 8,921.50
Planting & Post Planting Care Staff & Part -time help $ 8,968.50
Tree Inventory collection $17,890.00
(Personnel — 56% of costs)
Compost Facility Tree Mulch / Compost $ 0.00
(Compost — % of costs)
(Used mulch generated by chipping)
Equipment T- Posts, Arbor Tie $ 0.00
(Equipment — % of costs)
(Reused posts from trees in existing inventory)
Grand Total $31,682.14
Average Cost per Tree (planted, mulched, staked) $ 135.97
C�
s
�1
HUTCHINSON UTILITIES COMMISSION
I Identity Theft Prevention Program
Effective November I, 2008
1
I. PROGRAM ADOPTION
The Hutchinson Utilities Commission ( "HUC ") developed this Identity Theft
Prevention Program ( "Program ") pursuant to the Federal Trade Commission's Red
Flags Rule ( "Rule "), which implements Section 114 of the Fair and Accurate Credit
Transactions Act of 2003. 16 C.F.R. 681.2. This Program was developed with
oversight and approval of the Program Administrator (defined below). After
consideration of the size and complexity of HUC's operations and account systems,
and the nature and scope of HUC's activities, the Program Administrator determined
that this Program was appropriate for HUC and therefore approved this Program on
October 20, 2008.
II. PROGRAM PURPOSE AND DEFINITIONS
A. Fulfilling requirements of the Red Flags Rule
Under the Red Flag Rule, every financial institution and creditor is required to establish
an "Identity Theft Prevention Program" tailored to its size, complexity and the nature of
its operation. Each program must contain reasonable policies and procedures to:
1. Identity relevant Red Flags for new and existing covered accounts and incorporate
those Red Flags into the Program;
2. Detect Red Flags that have been incorporated into the Program;
3. Respond appropriately to any Red Flags that are detected to prevent and mitigate
Identity Theft; and
4. Ensure the Program is updated periodically, to reflect changes in risks to
customers or to the safety and soundness of the credit from Identity Theft.
B. Red Flags Rule definitions used in this Program
The Red Flags Rule defines "Identity Theft" as "fraud committed using the identifying
information of another person" and a "Red Flag" as a pattern, practice, or specific activity
that indicates the possible existence of Identity Theft.
According to the Rule, a municipal utility is a credit subject to the Rule requirements.
The Rule defines credits "to include finance companies, automobile dealers, mortgage
brokers, utility companies, and telecommunications companies. Where non - profit and
government entities defer payment for goods or services, they, too, are to be considered
creditors."
All HUC's accounts that are individual utility service accounts held by customers of
HUC whether residential, commercial or industrial are covered by the Rule. Under the
Rule, a "covered account" is:
1. Any account HUC offers or maintains primarily for personal, family or household
purposes, that involves multiple payments or transactions; and
2. Any other account HUC offers or maintains for which there is a reasonably
foreseeable risk to customers or to the safety and soundness of HUC from Identity
Theft.
"Identifying information" is defined under the Rule as "any name or number that may be
used, alone or in conjunction with any other information, to identify a specific person,"
including: name, address, telephone number, social security number, date of birth,
government issued driver's license or identification number, alien registration number,
government passport number, employer or taxpayer identification number, unique
electronic identification number, computer's Internet Protocol address, or routing code.
III. IDENTIFICATION OF RED FLAGS
In order to identify relevant Red Flags, HUC considers the types of accounts that it
offers and maintains, the methods it provides to open its accounts, the methods it
provides to access its accounts, and its previous experiences with Identity Theft.
HUC identifies the following red flags, in each of the listed categories:
A. Notifications and Warnings From Credit Reporting Agencies
Red Flags
1) Report of fraud accompanying a credit report;
2) Notice or report from a credit agency of a credit freeze on a customer or
applicant;
3) Notice or report from a credit agency of an active duty alert for an applicant; and
4) Indication from a credit report of activity that is inconsistent with a customer's
usual pattern or activity.
B. Suspicious Documents
Red Flags
1) Identification document or card that appears to be forged, altered or inauthentic;
2) Identification document or card on which a person's photograph or physical
description is not consistent with the person presenting the document;
3) Other document with information that is not consistent with existing customer
information (such as if a person's signature on a check appears forged); and
4) Application for service that appears to have been altered or forged.
C. Suspicious Personal Identifying Information
Red Flays
1) Identifying information presented that is inconsistent with other information the
customer provides (example: inconsistent birth dates);
2) Identifying information presented that is inconsistent with other sources of
information (for instance, an address not matching an address on a credit report);
3) Identifying information presented that is the same as information shown on other
applications that were found to be fraudulent;
4) Identifying information presented that is consistent with fraudulent activity (such
as an invalid phone number or fictitious billing address);
5) Social security number presented that is the same as one given by another
customer;
6) An address or phone number presented that is the same as that of another person;
7) A person fails to provide complete personal identifying information on an
application when reminded to do so (however, by law social security numbers
must not be required); and
8) A person's identifying information is not consistent with the information that is
on file for the customer.
D. Suspicious Account Activity or Unusual Use of Account
Red Flags
1) Change of address for an account followed by a request to change the account
holder's name:
2) Payments stop on an otherwise consistently up -to -date account;
3) Account used in a way that is not consistent with prior use (example: very high
activity);
4) Mail sent to the account holder is repeatedly returned as undeliverable;
5) Notice to HUC that a customer is not receiving mail sent by HUC;
6) Notice to HUC that an account has unauthorized activity;
7) Breach in HUC's computer system security; and
8) Unauthorized access to or use of customer account information.
E. Alerts from Others
Red Flag
1) Notice to HUC from a customer, identity theft victim, law enforcement or other
person that it has opened or is maintaining a fraudulent account for a person
engaged in Identity Theft.
IV. DETECTING RED FLAGS
A. New Accounts
In order to detect any of the Red Flags identified above associated with the opening
of a new account, HUC personnel will take the following steps to obtain and verify
the identity of the person opening the account:
Detect
1) Require certain identifying information such as name, date of birth, residential or
business address, principal place of business for an entity, driver's license or other
identification;
2) Verify the customer's identity (for instance, review a driver's license or other
identification card);
3) Review documentation showing the existence of a business entity; and
4) Independently contact the customer.
B. Existing Accounts
In order to detect any of the Red Flags identified above for an existing account,
HUC personnel will take the following steps to monitor transactions with an account:
Detect
1) Verify the identification of customers if they request information (in person, via
telephone, via facsimile, via email);
2) Verify the validity of requests to change billing addresses; and
3) Verify changes in banking information given for billing and payment purposes.
V. PREVENTING AND MITIGATING IDENTITY THEFT
In the event HUC personnel detect any identified Red Flags, such personnel shall take
one or more of the following steps, depending on the degree of risk posed by the Red
Flag:
Prevent and Mitigate
1) Continue to monitor an account for evidence of Identity Theft;
2) Contact the customer;
3) Change any passwords or other security devices that permit access to accounts:
4) Not open a new account;
5) Close an existing account;
6) Reopen an account with a new number;
7) Notify the Program Administrator for determination of the appropriate step(s) to
take;
8) Notify law enforcement; or
9) Determine that no response is warranted under the particular circumstances.
Protect customer identifying information
In order to further prevent the likelihood of identity theft occurring with respect to
HUC accounts, HUC will take the following steps with respect to its internal operating
procedures to protect customer identifying information:
1) Ensure that its website is secure or provide clear notice that the website is not
secure;
2) Ensure complete and secure destruction of paper documents and computer files
containing customer information:
3) Ensure that office computers are password protected and that computer screens
lock after a set period of time;
4) Keep offices clear of papers containing customer information;
5) Request only the last 4 digits of social security numbers (if any);
6) Ensure computer virus protection is up to date; and
7) Require and keep only the kinds of customer information that are necessary for
utility purposes.
VI. PROGRAM UPDATES
This Program will be periodically reviewed and updated to reflect changes in risks to
customers and the soundness of HUC from Identity Theft. At least every year, the
Program Administrator will consider HUC's experience with Identity Theft situation,
changes in Identity Theft methods, changes in Identity Theft detection and prevention
methods, changes in types of accounts HUC maintains and changes in HUC's business
arrangements with other entities. After considering these factors, the Program
Administrator will determine whether changes to the Program, including the listing of
Red Flags, are warranted. If warranted, the Program Administrator will update the
Program or present the Utility Commission with his or her recommended changes and the
Utility Commission will make a determination of whether to accept, modify or reject
those changes to the Program.
VII. PROGRAM ADMINISTRATION
A. Oversight
Responsibility for developing, implementing and updating this Program lies with an
Identity Theft Committee for HUC. The Committee is headed by a Program
Administrator who may be the head of HUC or his or her appointee. Two or more other
individuals appointed by the head of HUC or the Program Administrator comprise the
remainder of the committee membership. The Program Administrator will be responsible
for the Program administration, for ensuring appropriate training of HUC staff on the
Program, for reviewing any staff reports regarding the detection of Red Flags and the
steps for preventing and mitigating Identity Theft, determining which steps of prevention
and mitigation should be taken in particular circumstances and considering periodic
changes to the Program.
B. Staff Training and Reports
HUC staff responsible for implementing the Program shall be trained either by or
under the direction of the Program Administrator in the detection of Red Flags, and the
responsive steps to be taken when a Red Flag is detected.
C. Service Provider Arrangements
In the even HUC engages a service provider to perform an activity in connection with
one or more accounts, HUC will take the following steps to ensure the service
provider performs its activity in accordance with reasonable policies and procedures
designed to detect, prevent, and mitigate the risk of Identity Theft.
1) Require, by contract, that service providers have such policies and
procedures in place; and
2) Require, by contract, that service providers review HUC's Program and
report any Red Flags to the Program Administrator.
D. Specific Program Elements and Confidentiality
For the effectiveness of Identity Theft prevention Programs, the Red Flag Rule
envisions a degree of confidentiality regarding HUC's specific practices relating to
Identity Theft detection, prevention and mitigation. Therefore, under this Program,
knowledge of such specific practices is to be limited to the Identity Theft Committee
and those employees who need to know them for purposes of preventing Identity
Theft. Because this Program is to be adopted by a public body and thus publicly
available, it would be counterproductive to list these specific practices here.
Therefore, only the Program's general red flag detection, implementation and
prevention practices are listed in this document.
1
NEW ACCOUNTS
Red Flag:
Detect whether fraud is
Being attempted or
committed:
Prevent or mitigate
Detected fraud:
ID picture doesn't match
person
Request additional ID
Do not open account
ID information doesn't
match person
Request additional ID
Do not open account
ID does not look authentic
Request additional ID
Do not open account
ID looks doctored
Request additional ID
Do not open account
Using a suspicious name
Request additional ID
Do not open account
Applicant request that bill
be sent to address different
from where service is
received.
Verify that customer is
connected to billing address
(But be aware of the state's
"Safe at Home" program)
Do not open account
Credit report contains fraud
warning, credit freeze
notice or active duty alert
This may be an automatic
fraud detection Red Flag
Notify Program
Administrator; if warranted,
notify law enforcement
Bill payment made under
name other than that on
utility account
Request proof of residence
(other bills, etc.)
Close account
1
1
1
1
1
EXISTING ACCOUNTS
Red Flag:
Detect whether fraud is
being committed:
Mitigate detected fraud:
Non - payment of previously
current account
Call customer phone
number on file
Discontinue service; close
account
Utility service utilized after
known move -out with no
change of customer notice
received by HUC
Call customer phone
number on file
Discontinue service; close
account
Bill payment made under a
name other than name on
utility account
Call customer phone
number on file
Discontinue service; close
account
POLICIES Amended October 29, 2008
POLICY ON PURCHASING
State Statute 471:345
Hutchinson Utilities Commission hereby adopts a general policy on the purchasing of
equipment, supplies and services.
All purchases shall require supervisor permission. Emergency situations may require a
deviation from this policy to insure electric and /or natural gas services to the customers
of the Hutchinson Utilities. Joint purchasing of materials, supplies and services shall be
considered with other departments only when net economic benefits can be seen.
When a tie exists between low bids, preference will be given to a local supplier.
For purchases when the estimate is more than $50,000 $100,000:
1. The Hutchinson Utilities Commission will request permission to advertise for bids.
2. Specifications shall be made available to all prospective bidders.
3. Bids will be opened at a public bid opening. Date will be set in the advertisement
for bids.
4. The staff will review bids and recommend to the Hutchinson Utilities Commission
to accept the lowest responsible bidder meeting specifications.
5. Hutchinson Utilities Commission will enter into a contract with the responsible
bidder.
For purchases between $15,000 and $50,000 $100,000:
1. The Hutchinson Utilities Commission staff will solicit written, informal quotations
from at least three (3) suppliers and tabulate the results.
2. Fuel purchases for electrical generation is an exception, for additional exceptions
refer to Minnesota Statutes 2003, 471.345 Uniform Municipal Contracting Law
3. Staff will recommend acceptance of the lowest responsible quote.
4. Hutchinson Utilities Commission will approve the quote.
For purchases between $1,000 and $15,000:
1. The Hutchinson Utilities Commission staff will solicit written, informal quotations
from at least two (2) suppliers and tabulate the results.
2. Staff will recommend acceptance of the lowest responsible quote to the General
Manager for approval.
For purchases of $1,000 or less:
Directors are authorized to approve requisitions via the WINS Software System for
purchases requiring a purchase order number.
If purchase order numbers are not required each Division may use their assigned credit
card.
1. Division Director /Manager will approve all item requests prior to purchasing the
item.
2. Receipts will be given to each Division Director /Manager as items are purchased
to initial, assign appropriate account number and give a description of the item
purchased; then forward to Accounting.
3. Accounting will keep a file for each Division until monthly credit card statements
are received and reconciled.
Petty cash may be used for purchases less than $25.00.
Employees may make local purchases with prior approval from their
Director /Manager. The employee has the option of using a HUC credit card, paying
cash for the item, if less than $25.00, and being reimbursed from petty cash, or
making the purchase at a local retailer with whom we have an account established.
All receipts must to be turned in to the appropriate Director /Manager to initial, assign
appropriate account number and then forward to Accounting.
1
Notes from Meeting with John Olson on October 22 2008
Re: Change at HATS Facility
Items addressed are inventory, DOT Inspections and Maintenance
1.
HATS will continue to sell fuel, so nothing should change in that regard
2.
Justin Witte will continue to do DOT Inspections on HUC vehicles, in addition,
he will be trained to operate equipment at the HATS Facility, so he will be able to
conduct DOT Inspections on trailers, and potentially other HUC owned
equipment.
3.
Jason will identify inventory items that HATS currently takes care of, and will
address inventory as it relates to equipment owned by HUC, for example, filters,
pressure switches for air compressors, etc. HATS facility will sell the items they
currently have in inventory to HUC at cost.
4.
As much as is practicable, we will try to use the State bid for tires, batteries, etc.
5.
John Olson will provide a list of items for the maintenance that was conducted by
HATS for the last couple of years. He will have this completed within a couple of
weeks. He will give this information to both John and Steve, and they will
compile a list to arrive at a volume of work that will be needed on HUC owned
equipment. This information will be used to develop a specification and will be
provided to Roberta.
6.
Roberta will use the specs developed by John and Steve and will go out to various
vendors for quotes for the necessary volume of work. We will go out for quotes
for this work on an annual basis. Roberta will review the vendors the people
involved prior to going out for quotes.
7.
It is possible we will need to amend our Purchasing Policy prior to awarding the
work. We want to amend the purchasing policy where we will be able to go out
for quotes up to the $100,000 limit versus the present $50,000 limit. If we do not
amend the policy, it will end up being unduly burdensome, and it is likely the
formal process could end up costing HUC additional money due to the formalities
involved. The policy could be amended at the November Commission meeting.
8.
Each department will be responsible for their own recordkeeping for the vehicles.
An Excel spreadsheet will likely be used. The spreadsheet will also include costs
of maintenance for each vehicle.
9.
The Natural Gas Division will be responsible for maintaining the spreadsheet for
other equipment, such as trenchers, backhoes, etc. The Natural Gas Division will
keep track of the work involved in doing this, and if it ends up becoming
burdensome, then we will amend the work procedure and/or reassign the work as
necessary.
10.
The timeline for the above work will be, amend the purchasing policy at
November Commission meeting, approve the vehicle maintenance contract at the
December Commission meeting, develop spreadsheets by end of year, and
identify inventory items by end of year.
1
1
1
Integrated Resource Plan Summary Table
Energy Conservation Requirement 2007 Legislation)— conservation requirements are
1.5 % of retail sales.
Annual retail sales are approximately 320,000,000 KWHR's
1.5 % of 320,000,000 KWHR's = 4,800,000 KWHR's
520 KW x 24 hrs per day x 365 days per year = 4,555,200 KWHR's
The above requirements are programmed into HUC's CIP program using both direct and
also indirect energy savings.
Base load energy requirements are 35 MW
Base load energy sources are Coal, Nuclear, or Large Hydro. For HUC circumstances,
the only viable alternative for acquiring base load is through Coal. This will be done
through a Joint Action Agency, like MRES, since HUC does not have the financial
resources, and /or human resources for such a plant.
Existing Natural Gas Generation
Existing Natural Gas Generation is approximately 105 MW. This will be used primarily
for peaking purposes, and also for hedging the price of natural gas conversion to
electricity with the MISO market.
Renewable Energy
Assuming Minnesota allows the construction of a coal base power plant, and also
assuming HUC can remain successful in keeping its partnership relationship with its Joint
Action Agency (MRES), then twenty five percent of its energy resources will need to
come from renewable resources. The way the law is written is that an individual
municipal is not required to construct renewable energy resources, however, the Joint
Action providing energy to the municipal utility is required to have twenty five percent
coming from renewable energy resources.
Using wind as the benchmark, then approximately 23 MW of nameplate wind would
have to be constructed.
The following pages illustrate an implementation schedule to comply with the 25 x 25
law.
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