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06-29-2011 HUCMRegular Meeting June 29, 2011 Members present: President Robert Hantge; Vice President Paul Nordin; Secretary Dwight Bordson; Commissioner Donald H. Walser; Commissioner Craig Lenz; Attorney Marc Sebora; General Manager Michael Kumm President Hantge called the meeting to order at 3:00 p.m. The minutes of the May 25, 2011 regular meeting were reviewed. A motion was made by Secretary Bordson, seconded by Vice President Nordin to approve the minutes as written. Motion was unanimously carried. The May 2011 payables were discussed. A motion was made by Secretary Bordson, seconded by Commissioner Lenz to ratify the payment of bills in the amount of $2,935,761.74 (detailed listing in payables book). Motion was unanimously carried. GM Kumm presented the May 2011 financial statements /budget year -to -date. After discussion, a motion was made by Commissioner Lenz, seconded by Secretary Bordson to approve the financial statements /budget year -to -date. Motion was unanimously carried. Jim Booty of HDR Engineering was welcomed to the meeting. HDR Engineering performed an analysis to compare the bids received for natural gas fire reciprocating internal combustion engine generator set and auxiliaries. Mr. Booty presented the bid tabulation summary consisting of three bids submitted by Jenbacher Gas Engine, Ltd., Rolls Royce Marine AS, and Wartsila North America, Inc., with a recommendation to award bid to Wartsila North America, Inc. After discussion, a motion was made by Secretary Bordson, seconded by Commissioner Walser to approve the bid tabulation for the natural gas fired reciprocating internal combustion engine generator set and auxiliaries from Wartsila North America, Inc. Motion was unanimously carried. (Bid tabulation summary attached.) GM Kumm presented City assessments to HUC for Industrial Boulevard SE reconstruction. Total for the four parcels is $84,145.80. GM Kumm recommended to pay the full amount prior to November 15, 2011. After discussion, a motion was made by Secretary Bordson, seconded by Commissioner Lenz to approve making payment in full in the amount of $84,145.80, prior to November 15, 2011, for the City assessments to HUC for Industrial Boulevard SE reconstruction. Motion was unanimously carried. (Assessments attached.) GM Kumm presented changes to exempt and non - exempt handbooks, section: travel expenses. This section was reviewed and changes recommended by staff due to the March 30 regular meeting where discussion was held proposing changes to clarify the tipping limit. After discussion, it was decided to table this section with a board recommendation to rewrite it to include mileage reimbursement, clarification on tipping and receipts, and the daily maximum. Staff will review and present recommended changes at the next commission meeting. GM Kumm presented changes to exempt and non - exempt handbooks, section: business related vehicle operation. Staff revised this section due to the changes made to travel expenses policy and to eliminate redundancy. After discussion, it was decided to table this section with a board recommendation to rescind this section and move some verbiage to the travel expenses policy. Staff will review and present recommended changes at the next commission meeting. GM Kumm presented changes to exempt and non - exempt handbooks, section: volunteer fire or rescue squad duty. Staff revised this section due to the changes made to business related vehicle operation policy. After discussion, it was decided to table this section with a board recommendation to rewrite it for clarification. Staff will review and present recommended changes at the next commission meeting. Jared Martig presented changes to policy on purchasing / credit cards / fixed assets. These changes reflect the title change from `accountant' to `financial manager', `Accounting' to `the financial manager', and an increase in company credit card purchase allowance from $2,000 to $5,000. A motion was made by Commissioner Lenz, seconded by Secretary Bordson to approve changes to the policy on purchasing / credit cards / fixed assets. Motion was unanimously carried. (Policy attached.) GM Kumm presented changes to the exempt and non - exempt handbooks, sections: wage and salary information; pay period, paydays; payroll deductions; and overtime. The only recommended change is section: payroll deductions — exempt only; deleting the words `union dues,' in the last paragraph. After discussion, the board recommended replacing `Optional' with `Other' in the last paragraph in both exempt and non - exempt, sections: payroll deduction. The board also recommended replacing `paycheck' with `paycheck /direct deposit' in both exempt and non - exempt, sections: pay period, paydays; and payroll deductions. A motion was made by Vice President Nordin, seconded by Secretary Bordson to approve the changes to the exempt and non - exempt handbooks, sections: pay period, paydays; and payroll deductions. Motion was unanimously carried. (Changes attached.) GM Kumm discussed the natural gas purchase for a fixed price of $5.26 for October 2011 through November 2013. GM Kumm gave an update on MISO transmission. HUC has been approved with MISO; awaiting agreement between Xcel Energy and Great River Energy. GM Kumm discussed the Tree Power Program between the City of Hutchinson and Hutchinson Utilities Commission. Division Reports Electric — Steve Lancaster Nothing to report Business — Jan Sifferath • Discussed possible State shutdown and how that may affect customers paying bills. Board recommended to monitor and report back at next meeting. • Update on PILOT on billing statement; few customer questions only for clarification Finance — Jared Martig • City finished landscaping at the HUC inventory building Legal Update Nothing to report Unfinished Business GM Kumm gave update on HUC emergency response trailer budgeted for 2011. New Business Nothing to report There being no further business, a motion was made by Secretary Bordson, seconded by Vice President Nordin to adjourn the meeting at 4:50 p.m. Motion was unanimously carried. ATTEST: Robert Hantge, President Dwight Bordson, Secretary Regular Meeting June 29, 2011 Members present: President Robert Hantge; Vice President Paul Nordin; Secretary Dwight Bordson; Commissioner Donald H. Walser; Commissioner Craig Lenz; Attorney Marc Sebora; General Manager Michael Kumm President Hantge called the meeting to order at 3:00 p.m. The minutes of the May 25, 2011 regular meeting were reviewed. A motion was made by Secretary Bordson, seconded by Vice President Nordin to approve the minutes as written. Motion was unanimously carried. The May 2011 payables were discussed. A motion was made by Secretary Bordson, seconded by Commissioner Lenz to ratify the payment of bills in the amount of $2,935,761.74 (detailed listing in payables book). Motion was unanimously carried. GM Kumm presented the May 2011 financial statements /budget year -to -date. After discussion, a motion was made by Commissioner Lenz, seconded by Secretary Bordson to approve the financial statements /budget year -to -date. Motion was unanimously carried. Jim Booty of HDR Engineering was welcomed to the meeting. HDR Engineering performed an analysis to compare the bids received for natural gas fire reciprocating internal combustion engine generator set and auxiliaries. Mr. Booty presented the bid tabulation summary consisting of three bids submitted by Jenbacher Gas Engine, Ltd., Rolls Royce Marine AS, and Wartsila North America, Inc., with a recommendation to award bid to Wartsila North America, Inc. After discussion, a motion was made by Secretary Bordson, seconded by Commissioner Walser to approve the bid tabulation for the natural gas fired reciprocating internal combustion engine generator set and auxiliaries from Wartsila North America, Inc. Motion was unanimously carried. (Bid tabulation summary attached.) GM Kumm presented City assessments to HUC for Industrial Boulevard SE reconstruction. Total for the four parcels is $84,145.80. GM Kumm recommended to pay the full amount prior to November 15, 2011. After discussion, a motion was made by Secretary Bordson, seconded by Commissioner Lenz to approve making payment in full in the amount of $84,145.80, prior to November 15, 2011, for the City assessments to HUC for Industrial Boulevard SE reconstruction. Motion was unanimously carried. (Assessments attached.) GM Kumm presented changes to exempt and non - exempt handbooks, section: travel expenses. This section was reviewed and changes recommended by staff due to the March 30 regular meeting where discussion was held proposing changes to clarify the tipping limit. After discussion, it was decided to table this section with a board recommendation to rewrite it to include mileage reimbursement, clarification on tipping and receipts, and the daily maximum. Staff will review and present recommended changes at the next commission meeting. GM Kumm presented changes to exempt and non - exempt handbooks, section: business related vehicle operation. Staff revised this section due to the changes made to travel expenses policy and to eliminate redundancy. After discussion, it was decided to table this section with a board recommendation to rescind this section and move some verbiage to the travel expenses policy. Staff will review and present recommended changes at the next commission meeting. GM Kumm presented changes to exempt and non - exempt handbooks, section: volunteer fire or rescue squad duty. Staff revised this section due to the changes made to business related vehicle operation policy. After discussion, it was decided to table this section with a board recommendation to rewrite it for clarification. Staff will review and present recommended changes at the next commission meeting. Jared Martig presented changes to policy on purchasing / credit cards / fixed assets. These changes reflect the title change from `accountant' to 'financial manager', 'Accounting' to 'the financial manager', and an increase in company credit card purchase allowance from $2,000 to $5,000. A motion was made by Commissioner Lenz, seconded by Secretary Bordson to approve changes to the policy on purchasing / credit cards / fixed assets. Motion was unanimously carried. (Policy attached.) GM Kumm presented changes to the exempt and non - exempt handbooks, sections: wage and salary information; pay period, paydays; payroll deductions; and overtime. The only recommended change is section: payroll deductions — exempt only; deleting the words `union dues,' in the last paragraph. After discussion, the board recommended replacing `Optional' with `Other' in the last paragraph in both exempt and non - exempt, sections: payroll deduction. The board also recommended replacing 'paycheck' with `paycheck/direct deposit' in both exempt and non - exempt, sections: pay period, paydays; and payroll deductions. A motion was made by Vice President Nordin, seconded by Secretary Bordson to approve the changes to the exempt and non - exempt handbooks, sections: pay period, paydays; and payroll deductions. Motion was unanimously carried. (Changes attached.) GM Kumm discussed the natural gas purchase for a fixed price of $5.26 for October 2011 through November 2013. GM Kumm gave an update on MISO transmission. HUC has been approved with MISO; awaiting agreement between Xcel Energy and Great River Energy. GM Kumm discussed the Tree Power Program between the City of Hutchinson and Hutchinson Utilities Commission. Division Reports Electric — Steve Lancaster Nothing to report Business — Jan Sifferath • Discussed possible State shutdown and how that may affect customers paying bills. Board recommended to monitor and report back at next meeting. • Update on PILOT on billing statement; few customer questions only for clarification Finance — Jared Martig • City finished landscaping at the HUC inventory building Legal Update Nothing to report Unfinished Business GM Kumm gave update on HUC emergency response trailer budgeted for 2011. New Business Nothing to report There being no further business, a motion was made by Secretary Bordson, seconded by Vice President Nordin to adjourn the meeting at 4:50 p.m. Motion was unanimously carried. r wi ht B son, Secretary ATTEST: Ro tge, President a E H 9r goal e x t a�� _ = i o� 121 k MITo m' I �- I-otx - -�— - - r - -- -I -- �- - all L Q I a: OIL a OI — °o, O °o °o 0 0 C b °° o o. o 0101 O o a O a 0 0 a 0 a 0 O i A m i n x Z'.y ti:O +m N a0l�i sail 00 V i g N . I 3 1 I I l i I II - -I IN oI � m } - -J � o E ° °0101 oo: c t� o H ow I ' _ W °o I I v °o_ o$ � i °o o f ° • 1° 'o oo m �' I m I, m m� m a m o. 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E o c! pmp Z o cs El-o u u 1-4 1 3: c. u o a x 1 .1 1 I o go I c 8 I 2 v t 0 E Z E El L. u of la s oN c > ml 3 01 0 z x I c Ld A,!�i y , 2011 MAY 24, 2011 Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350 -2522 320 - 587- 5151/Fax 320 -234 -4240 Hutchinson Utilities ASSESSMENT HEARING: 06114/2011 225 Michigan St SE HEARING TIME: 6:00 PM Hutchinson MN 55350 LOCATION: HUTCHINSON CITY CENTER PRELIMINARY NOTICE - 2011 IMPROVEMENTS ASSESSMENT ROLL NO. 5098 LETTING NO. 2 1PROJECT NO. 11 -02 ACCOUNT NO. 5 COUNTY PARCEL NO. 23 257 0010 CITY PARCEL NO. 05- 116 -29 -04 -0110 PROPERTY ADDRESS: 230 Eastgate Dr SE PROPERTY DESCRIPTION: Lot 1, Blk 1, Second Addition to Hutchinson Industrial District STREET ASSESSMENT (356.98 FF - 132.00 FF Credit = 224.98 FF @ $60.00 /FF): $13,498.80 TOTAL ASSESSMENT: $1498.80 L2/P11 -02: Industrial Boulevard SE Reconstruction by roadway reconstruction, curb and gutter, draintile installation, bituminous surfacing, stormwater /.drainage improvements, water main /services, sanitary sewer main /services, street lighting, landscaping, restoration and appurtenances; and L2/P11 -03: Energy Park Wear Course Placement by bituminous surfacing and appurtenances. NOTES: ASSESSMENT COSTS HAVE BEEN CALCULATED BASED ON THE CITY'S ASSESSMENT POLICYAND ESTABLISHED WITHIN THE 2011 CITY FEE SCHEDULE. THEA TTACHED NOTICE OFHEARING ONPROPOSEDASSESSMENTSTA TES "THE RA TE OFINTEREST THAT WILL APPLYIS 10 PERCENT (PLUS OR MINUS) PER YEAR.,, THEACTUAL INTEREST RATE WILL BE DETERMINED IN LATE SUMMER (AUGUST /SEPTEMBER) AT THE TIME BONDS ARE SOLD. YOU WILL RECEIVE A FINAL ASSESSMENT NOTICE BY OCTOBER 14TH 2011 STATING THE ACTUAL INTEREST RATE, WHICH WILL BE 1% OVER THE RATE OF THE BOND. DEPENDING ONCHANGES IN THE ECONOMY, THE RATE IS EXPECTED TO BE BETWEEN S% AND 7 %. YOUR PAYMENT OPTIONS ARE. - FULL OR PARTIAL PAYMENT WITHOUT INTEREST BY NOVEMBER 15TH, 2011. - AFTER NOVEMBER 15TH, 2011 THE ASSESSMENTS ARE CERTIFIED TO TAX ROLL AND WILL RUN FOR TEN (1 0) YEARS, WITH INTEREST ACCRUING. THE FIRST YEAR'S INTEREST IS FOR 14 MONTHS (NOV. 2011 THROUGH DECEMBER 2012). - DEFERMENT IS AVAILABLE FOR PROPERTY OWNERS MEETING INCOME GUIDELINES, WHO ARE 1. OVER 65 YEARS OF AGE, OR 2. DISABLED, OR 3. A MEMBER OF THE MINNESOTA NATIONAL GUARD (OR OTHER MILITARY RESERVES) ORDERED INTO ACTIVE MILITARY SERVICE IF IT WOULD BE A HARDSHIP FOR THAT PERSON TO MAKE THE PAYMENTS. - Printed on recycled paper - Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350 -2522 320 - 587- 5151/Fax 320 - 2344240 W 2 6 MAY 24, 2011 2011 Hutchinson Utilities ASSESSMENT HEARING: 06/14/2011 225 Michigan St SE = -.__ _ HEARING TIME: 6:00 PM Hutchinson MN 55350 -- _ _ LOCATION: HUTCHINSON CITY CENTER PRELIMINARY NOTICE - 2011 IMPROVEMENTS ASSESSMENT ROLL NO. 5098 LETTING NO. 2 /PROJECT NO. 11 -02 ACCOUNT NO. 6 COUNTY PARCEL NO. 23 256 0031 CITY PARCEL NO. 05- 116 -29 -04 -0100 PROPERTY ADDRESS: 1096 Industrial Blvd SE PROPERTY DESCRIPTION: Lot 5 & Vacated 4th Ave SE Adjacent, Blk 2, Hutchinson Industrial District STREET ASSESSMENT (493.00 FF - FF Credit = 493.00 FF @ $60.00/FF): $29,580.00 TOTAL ASSESSMENT: ?.9.580.00 1-2/P11 -02: Industrial Boulevard SE Reconstruction by roadway reconstruction, curb and gutter, draintile installation, bituminous surfacing, stormwater /.drainage improvements, water main /services, sanitary sewer main /services, street lighting, landscaping, restoration and appurtenances; and L2/P11 -03: Energy Park Wear Course Placement by bituminous surfacing and appurtenances. NOTES: ASSESSMENT COSTS HAVE BEEN CALCULATED BASED ON THE CITY'S ASSESSMENT POLICYAND ESTABLISHED WITHIN THE 2011 CITY FEE SCHEDULE. THE ATTACHED NOTICE OF HEARING ONPROPOSED ASSESSMENTSTA TES "THE RATE OFINTEREST THAT WILL APPLYIS 10 PERCENT (PLUS OR MINUS) PER YEAR. " THEACTUAL INTEREST RATE WILL BE DETERMINED IN LATE SUMMER (AUGUST /SEPTEMBER) AT THE TIME BONDS ARE SOLD. YOU WILL RECEIVE A FINAL ASSESSMENT NOTICE BY OCTOBER 14TH 2011 STATING THE ACTUAL INTEREST RATE, WHICH WILL BE I % OVER THE RATE OF THE BOND. DEPENDING ON CHANGES IN THE ECONOMY, THE RATE IS EXPECTED TO BE BETWEEN 5% AND 7% YOUR PAYMENT OPTIONS ARE: - FULL OR PARTIAL PAYMENT WITHOUT INTEREST BY NOVEMBER 15TH, 2011. - AFTER NOVEMBER 15TH, 2011 THE ASSESSMENTS ARE CERTIFIED TO TAX ROLL AND WILL RUN FOR TEN (10) YEARS, WITH INTEREST ACCRUING. THE FIRST YEAR'S INTEREST IS FOR 14 MONTHS (NOV. 2011 THROUGH DECEMBER 2012). - DEFERMENT IS AVAILABLE FOR PROPERTY OWNERS MEETING INCOME GUIDELINES, WHO ARE 1. OVER 65 YEARS OF AGE, OR 2. DISABLED, OR 3. A MEMBER OF THE MINNESOTA NATIONAL GUARD (OR OTHER MILITARY RESERVES) ORDERED INTO ACTIVE MILITARY SERVICE IF IT WOULD BE A HARDSHIP FOR THAT PERSON TO MAKE THE PAYMENTS. Printed on recycled paper - Ed Hutchinson Utilities 225 Michigan St SE Hutchinson MN 55350 MAY 2 5 2011 Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350 -2522 320 - 587- 5151/Fax 320 - 2344240 MAY 24, 2011 ASSESSMENT HEARING: 0611412011 HEARING TIME: 6:00 PM LOCATION: HUTCHINSON CITY CENTER PRELIMINARY NOTICE - 2011 IMPROVEMENTS ASSESSMENT ROLL NO. 5098 LETTING NO. 2 /PROJECT NO. 11 -02 ACCOUNT NO. 4 COUNTY PARCEL NO. 23 256 0050 CITY PARCEL NO. 05- 116 -29 -04 -0060 PROPERTY ADDRESS: 225 Michigan St SE PROPERTY DESCRIPTION: Lot 7, Blk 2, Hutchinson Industrial District STREET ASSESSMENT (460.00 FF - 132.00 FF Credit = 328.00 FF @ $60.00 /FF): $19,680.00 TOTAL ASSESSMENT: L2/P11 -02: Industrial Boulevard SE Reconstruction by roadway reconstruction, curb and gutter, draintile installation, bituminous surfacing, stormwater /.drainage improvements, water main /services, sanitary sewer main /services, street lighting, landscaping, restoration and appurtenances; and L2/P11 -03: Energy Park Wear Course Placement by bituminous surfacing and appurtenances. NOTES: ASSESSMENT COSTS HAVE BEEN CALCULATED BASED ON THE CITY'S ASSESSMENT POLICYAND ESTABLISHED WITHIN THE 2011 CITY FEE SCHEDULE. THEATTACHED NOTICE OFHEARINGONPROPOSEDASSESSMENTSTATES "THERATEOFINTEREST THAT WILL APPLYIS 10 PERCENT (PLUS OR MINUS) PER YEAR. " THE ACTUAL INTEREST RATE WILL BE DETERMINED IN LATE SUMMER (AUGUST /SEPTEMBER) AT THE TIME BONDS ARE SOLD. YOU WILL RECEIVE A FINAL ASSESSMENT NOTICE BY OCTOBER 14TH 2011 STATING THE ACTUAL INTEREST RATE, WHICH WILL BE 1 % OVER THE RATE OF THE BOND. DEPENDING ONCHANGES IN THE ECONOMY, THE RATE IS EXPECTED TO BE BETWEEN S% AND 7 %. YOUR PAYMENT OPTIONS ARE. - FULL OR PARTIAL PAYMENT WITHOUT INTEREST BY NOVEMBER 15TH, 2011. - AFTER NOVEMBER 15TH, 2011 THE ASSESSMENTS ARE CERTIFIED TO TAX ROLL AND WILL RUN FOR TEN (10) YEARS, WITH INTEREST ACCRUING. THE FIRST YEAR'S INTEREST IS FOR 14 MONTHS (NOV. 2011 THROUGH DECEMBER 2012). - DEFERMENT IS AVAILABLE FOR PROPERTY OWNERS MEETING INCOME GUIDELINES, WHO ARE OVER 65 YEARS OF AGE, OR 2. DISABLED, OR 3. A MEMBER OF THE MINNESOTA NATIONAL GUARD (OR OTHER MILITARY RESERVES) ORDERED INTO ACTIVE MILITARY SERVICE IF IT WOULD BE A HARDSHIP FOR THAT PERSON TO MAKE THE PAYMENTS. - Printed on recycled paper - C Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350 -2522 320 - 587- 5151/Fax 320 -234 -4240 2 6 2011 MAY 24, 2011 Hutchinson Utilities ASSESSMENT HEARING: 06/14/2011 225 Michigan St SE HEARING TIME: 6:00 PM Hutchinson MN 55350 LOCATION: HUTCHINSON CITY CENTER PRELIMINARY NOTICE - 2011 IMPROVEMENTS ASSESSMENT ROLL NO. 6098 LETTING NO. 2 /PROJECT NO. 11 -02 ACCOUNT NO. 7 COUNTY PARCEL NO. 23 256 0036 CITY PARCEL NO. 05- 116 -29 -03 -0010 PROPERTY ADDRESS: 1106 Industrial Blvd SE PROPERTY DESCRIPTION: N69' of Lot 2 & Lot 3 & 1/2 Vacated Superior St SE Adjacent, Blk 3, Hutchinson Industrial District STREET ASSESSMENT (496.45 FF - 140.00 FF Credit = 356.45 FF @ $60.00 /FF): $21,387.00 TOTAL ASSESSMENT: $27 L2/P11 -02: Industrial Boulevard SE Reconstruction by roadway reconstruction, curb and gutter, draintile installation, bituminous surfacing, stormwater /.drainage improvements, water main /services, sanitary sewer main/services, street lighting, landscaping, restoration and appurtenances; and L2/P11 -03: Energy Park Wear Course Placement by bituminous surfacing and appurtenances. NOTES: ASSESSMENT COSTS HAVE BEEN CALCULATED BASED ON THE CITY'S ASSESSMENT POLICYAND ESTABLISHED WITHIN THE 2011 CITY FEE SCHEDULE. THEATTACHED NOTICE OFHEARING ONPROPOSED ASSESSMENTSTA TES "THE RATE OFINTEREST THAT WILL APPLYIS 10 PERCENT (PLUS OR MINUS) PER YEAR " THEACTUAL INTERESTRATE WILL BE DETERMINED IN LATE SUMMER (AUGUST /SEPTEMBER) AT THE TIME BONDS ARE SOLD. YOU WILL RECEIVE A FINAL ASSESSMENT NOTICE BY OCTOBER 14TH 2011 STATING THE ACTUAL INTEREST RATE, WHICH WILL BE I % OVER THE RATE OF THE BOND. DEPENDING ON CHANGES IN THE ECONOMY, THE RATE IS EXPECTED TO BE BETWEEN 5% AND 7%. YOUR PAYMENT OPTIONS ARE. - FULL OR PARTIAL PAYMENT WITHOUT INTEREST BY NOVEMBER 15TH, 2011. - AFTER NOVEMBER 15TH, 2011 THE ASSESSMENTS ARE CERTIFIED TO TAX ROLL AND WILL RUN FOR TEN 00) YEARS, WITH INTEREST ACCRUING. THE FIRST YEAR'S INTEREST IS FOR 14 MONTHS (NOV. 2011 THROUGH DECEMBER 2012). - DEFERMENT IS AVAILABLE FOR PROPERTY OWNERS MEETING INCOME GUIDELINES, WHO ARE OVER 65 YEARS OF AGE, OR 2. DISABLED, OR 3. A MEMBER OF THE MINNESOTA NATIONAL GUARD (OR OTHER MILITARY RESERVES) ORDERED INTO ACTIVE MILITARY SERVICE IF IT WOULD BE A HARDSHIP FOR THAT PERSON TO MAKE THE PAYMENTS. Printed on recycled paper - PUBLICATION NO. 7879 NOTICE OF HEARING ON PROPOSED ASSESSMENT ASSESSMENT ROLL NO. SA -5098 LETTING NO.2/PROJECT NO. 11 -02 $11 -03 TO WHOM IT MAY CONCERN: Notice is hereby given that the City Council will meet at 6:00 P.M. on the 14th day of June 2011, in the Council Chambers at City Hall at Hutchinson, Minnesota, to consider and possibly adopt the proposed assessment for the improvement of: L2/P11 -02: Industrial Boulevard SE Reconstruction by roadway reconstruction, curb and gutter, draintile installation, bituminous surfacing, stormwater /.drainage improvements, water main /services, sanitary sewer main /services, street lighting, landscaping, restoration and appurtenances; and L2/P11 -03: Energy Park Wear Course Placement by bituminous surfacing and appurtenances. Adoption by the Council of the proposed assessment against abutting property may occur at the hearing. This assessment is proposed to be payable in equal annual installments extending over a period of ten years, the first of the installments to be payable on or before the first Monday in January 2012, and will bear interest at the rate of 10 percent (plus or minus) per annum from the date of the adoption of the assessment resolution. To the first installment shall be added interest on the entire assessment from the November 1, 2011 until December 31, 2012. To each subsequent installment when due shall be added interest for one year on all unpaid installments. You may at anytime prior to certification of the assessment to the County Auditor, pay the entire assessment on such property, with interest accrued to the date of payment, to the City Administrator. No interest shall be charged if the entire assessment is paid by November 15th, 2011. You may, at anytime thereafter, pay to the City Administrator the entire amount of the assessment remaining unpaid, with interest accrued to December 31 st of the year in which such payment is made. Such payment must be made before November 17th or interest will be charged through December 31 st of the succeeding year. If you decide not to prepay the assessment before the date given above, the rate of interest that will apply is 10 percent (plus or minus) per year. The right to partially prepay the assessment shall be until November 15, 2011. The proposed assessment is on file for public inspection at the City Administrator's Office. The total amount of the proposed assessment is $122,455.20. Written or oral objections will be considered at the meeting. No appeal may be taken as to the amount of an assessment unless a signed, written objection is filed with the City Administrator prior to the hearing or presented to the presiding officer at the hearing. The Council may, upon such notice, consider any objection to the amount of a proposed individual assessment at an adjourned meeting upon such further notice to the affected property owners as it deems advisable. If an assessment is contested or there is an adjourned hearing, the following procedure will be followed: The City will present its case first by calling witnesses who may testify by narratives or by examination, and by the introduction of exhibits. After each witness has testified, the contesting party will be allowed to ask questions. This procedure will be repeated with each witness until neither side has further questions. PUBLICATION NO. 7879 ASSESSMENT ROLL NO. SA -5098 LETTING NO.2/PROJECT NO. 11 -02 & 11 -03 PAGE 2 After each witness has testified, the contesting party will be allowed to ask questions. This procedure will be repeated with each witness until neither side has further questions. 2. After the City has presented all its evidence, the objector may call witnesses or present such testimony as the objector desires. The same procedure for questioning of the City's witnesses will be followed with the objector's witnesses. 3. The objector may be represented by counsel. 4. Minnesota rules of evidence will not be strictly applied; however, they may be considered and argued to the Council as to the weight of items of evidence or testimony presented to the Council. 5. The entire proceedings will be tape- recorded. 6. At the close of presentation of evidence, the objector may make a final presentation to the Council based on the evidence and the law. No new evidence may be presented at this point. An owner may appeal an assessment to District Court pursuant to Minnesota Statutes Section 429.081 by serving notice of the appeal upon the Mayor or City Administrator within 30 days after the adoption of the assessment and filing such notice with the District Court within ten days after service upon the Mayor or City Administrator. Under Minnesota Statutes, Section 435.193 to 435.195, the Council may, in its discretion, defer the payment of this special assessment for any homestead property owned by a person 65 years of age or older for whom it would be a hardship to make the payments. When deferment of the special assessment has been granted and is terminated for any reason provided in that law, all amounts accumulated, plus applicable interest, become due. Any assessed property owner meeting the requirements of the law and the resolution adopted under it, may within 30 days of the confirmation of the assessment, apply to the City Clerk, for the prescribed form for such deferral of payment of this special assessment on his property. Jeremy J. Carter, City Administrator City of Hutchinson, Minnesota PUBLISHED IN THE HUTCHINSON LEADER ON WEDNESDAY, MAY 25TH, 2011 AND WEDNESDAY, JUNE 1ST, 2011. Amended jURe 30, 2 Amended June 29, 2011 POLICIES 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 $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 $25,000 and $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 up to $25,000: 1. General Manager authorized to approve purchases up to $25,000. 2. For purchases of $5,000 - $25,000, the Hutchinson Utilities Commission staff will solicit written, informal quotations from at least two (2) suppliers and tabulate the results. 3. Staff will recommend acceptance of the lowest responsible quote to the General Manager for approval. For purchases up to $5,000: Directors are authorized to approve requisitions via the WIN -STS 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 will approve all item requests prior to purchasing the item. 2. Receipts will be given to each Division Director 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. For purchases up to $1,000: Managers are authorized to approve requisitions via the WIN -STS System for purchases requiring a purchase order number. If purchase order numbers are not required, each department may use their assigned credit card. 1. Department manager will approve all item requests prior to purchasing item. 2. Receipts will be given to each department 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 department 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 toAsseUnt+eg the financial manager. CREDIT CARDS A purchase by credit card must comply with all statutes and rules applicable to Hutchinson Utilities Commission (HUC) purchases. Credit card purchases must comply with the following requirements: Minn. Stat. 412.271, subd. 2 and 471.38, subd.1. Claims presented to HUC for payment must be in writing and itemized. Bills from credit card companies do not contain the detail necessary to satisfy these requirements; therefore, HUC must retain invoices and itemized receipts for items charged to a credit card. The Office of the State Auditor strongly urges local government units to develop a comprehensive credit card use policy to avoid misappropriation of funds or other misuse of the credit card. The following are authorized to make credit card purchases on behalf of HUC: General Manager Electric Division Director Natural Gas Division Director Customer /Human Relations Manager Electric Transmission /Distribution Manager Production Manager Engineering Services Manager Purchasing Agent Company purchases up to $2;0805,000 are allowed to be made with a credit card. No personal purchases are to be made with the credit card. Receipts will be given to each Division Director /Manager as items are purchased to initial, assign appropriate account numbers and give a description of the item purchased. The receipt then gets forwarded to the aGGOuntant financial manager. The financial manager will keep a file for each Division until monthly credit card statements are received and reconciled. The aCGOuntant.financial manager has the authority to approve and question all credit card purchases in so far as the policy applies. The full amount of the statement must be paid each month. FIXED ASSET CAPITALIZATION The Hutchinson Utilities Commission (HUC) will regard fixed assets as capitalized when all of the following criteria are met: (1) Assets purchased, built or leased have useful lives of one year or more. (2) The cost of the asset (including installation) is $5,000 or more. Multiple assets whose cost is less than $5,000 but the aggregate requestor total is $5,000 or more are capitalized. (3) The cost of repairing or renovating the asset is $5,000 or more and prolongs the life of the asset. HUC will regard the purchase of software programs as fixed assets subject to the above capitalization policy, and will amortize over an estimated useful life of 3 years. Costs associated with software maintenance and customer support are considered expenditures and will not be capitalized. Other Considerations: (1) REPAIR is an expenditure that keeps the property in ordinary efficient operating condition. The cost of the repair does not add to the value or prolong the life of the asset. All repair expenditures are charged to the appropriate department and fund. (2) IMPROVEMENTS are expenditures for additions, alterations and renovations that appreciably prolong the life of the asset, materially increase its value or adapt it to a different use. Improvements of the nature are capitalized. Examples of Repairs vs. Improvements Repairs= Expend itures All items -life less than one year All items under $5,000 Property maintenance, wall repair Replacement of machine parts to keep machine in normal operating condition Property restoration (rebuilding) for normal operations Existing building repairs Replacement of small sections of wiring, pipes or light fixtures Patching walls, minor repairs of floors, painting, etc. Patching driveways Improvements= Capitalized Assets Life of more than one year All items $5,000 or more Property rebuilding Replacement of machine parts that prolong the useful life Property restoration for something different or better Building regulation conformity Major replacement of wiring, lighting, pipes or sewer Installation of floor, wall, roof, wall covering, etc. New driveway or major repair Cleaning drapery, carpet, furniture New drapery, carpets, furniture Depreciation Method — Straight Line over the following useful lives: Buildings 35 -60 years Transmission Plant (electric) 20 -35 years Distribution Plant (electric) 20 -35 years Building Improvement 15 -30 years Transmission Plant (gas) 10 -45 years Distribution Plant (gas) 10 -45 years Generation Plant 10 -30 years General Plant 5 -10 years Vehicles 5 -10 years Office Equipment 3 -5 years Computer Equipment 3 -5 years EXEMPT SECTION 4 — WAGE AND SALARY INFORMATION PAY PERIOD, PAYDAYS All employees are paid every other Thursday for the two -week period ending the preceding Sunday at 12:00 midnight. Should a payday fall on a holiday, paychecks /direct deposits will be available the preceding day. NON - EXEMPT SECTION 4— WAGE AND SALARY INFORMATION PAY PERIOD, PAYDAYS All employees are paid every other Thursday for the two -week period ending the preceding Sunday at 12:00 midnight. Should a payday fall on a holiday, paychecks /direct deposits will be available the preceding day. EXEMPT PAYROLL DEDUCTIONS The Utilities are required to deduct federal and state income taxes, Social Security tax, and any court- ordered deductions such as child support from paychecks /direct deposits. The Utilities are also required to deduct the employee's contribution to the Public Employee Retirement Association (PERA). Opti Other deductions may be made from a paycheck/direct deposit such asp, deferred compensation, and insurance premiums. These payroll deductions may be made only with the employee's written consent. NON - EXEMPT PAYROLL DEDUCTIONS The Utilities are required to deduct federal and state income taxes, Social Security tax, and any court- ordered deductions such as child support from paychecks /direct deposits. The Utilities are also required to deduct the employee's contribution to the Public Employee Retirement Association (PERA). Optional Qther deductions may be made from a paycheck/direct deposit such as union dues, deferred compensation, and insurance premiums. These payroll deductions may be made only with the employee's written consent.