12-28-2011 HUCMRegular Meeting
December 28, 2011
Members present: President Robert Hantge; Commissioner Donald H. Walser;
Commissioner Craig Lenz; Attorney Marc Sebora; General Manager Michael Kumm
Members absent: Secretary Dwight Bordson and Vice President Paul Nordin
President Hantge called the meeting to order at 3:00 p.m.
Agenda item #4: Common Cup — Electrical Disconnect was moved to agenda item #2;
Agenda item #2: Ratify Payment of Bills was moved to agenda item #3; and
Agenda item #3: Approve Financial Statements /Budget Year -to -Date was moved to
agenda item #4.
The minutes of November 30, 2011 regular meeting, December 5, 2011 special meeting
and December 15, 2011 special meeting were reviewed. A motion was made by
Commissioner Walser, seconded by Commissioner Lenz to approve the minutes of
November 30, 2011 regular meeting, December 5, 2011 special meeting and
December 15, 2011 special meeting as written. Motion was unanimously carried.
President Hantge welcomed guest, Bev Bonte of Common Cup. Bev explained
Common Cup's mission to provide financial resources to those in need. Common Cup
provides help one time to a customer in need of no more than 75% of their bill at a $100
cap. The Hutchinson Utilities Commission disconnect and reconnect fees are $40 each.
Bev requested Hutchinson Utilities consider options in helping offset the disconnect and
reconnect fees as the $100 Common Cup donation mostly goes towards paying the
fees and not the customer's original outstanding utility bill. After discussion, the Board
recommended GM Kumm meet with Bev regarding her request and to discuss options.
The November 2011 payables were discussed. A motion was made by Commissioner
Lenz, seconded by Commissioner Walser to ratify the payment of bills in the amount of
$2,793,595.67 (detailed listing in payables book). Motion was unanimously carried.
GM Kumm presented the November 2011 financial statements /budget year -to -date
explaining overall it's been a very good year. A motion was made by Commissioner
Lenz, seconded by Commissioner Walser to approve the financial statements /budget
year -to -date. Motion was unanimously carried.
President Hantge presented GM Kumm's 2011 performance review. Commissioner
Walser noted there were also comments solicited from the Commissioners in addition to
the coworkers for the performance review. A motion was made by Commissioner Lenz,
seconded by Commissioner Walser to adopt GM Kumm's 2011 performance review.
Motion was unanimously carried. (Performance Review attached.)
Jan Sifferath presented the write off of bad debts at a total of $3,378.75. The write offs
have significantly decreased since 2008. A motion was made by Commissioner Lenz,
seconded by Commissioner Walser to approve the write off of bad debts at a total of
$3,378.75. Motion was unanimously carried. (Write Off List attached.)
GM Kumm presented the changes to the policy on payments of Hutchinson Utilities
Commission payables. This policy is reviewed yearly at the request of HUC auditors. In
addition to updating the year, the verbiage `or HUC Financial Manager' was added to
the second paragraph. After discussion, a motion was made by Commissioner Walser,
seconded by Commissioner Lenz to approve the changes to the policy on payments of
Hutchinson Utilities Commission payables. Motion was unanimously carried. (Policy
attached.)
GM Kumm presented the parallel generation policy. This is a part of the ongoing policy
review and no changes were recommended. (Policy attached.)
GM Kumm presented policies and requirements booklet, sections: inserts with utility
bills; inaccessible utility equipment /meters; and identity theft — "red flag program ". No
changes were recommended.
GM Kumm presented changes to exempt and non - exempt handbooks, sections: training
and education assistance; and workplace accommodation. Recommended changes
were made to clean up verbiage for consistency. After discussion, a motion was made
by Commissioner Walser, seconded by Commissioner Lenz to approve changes to the
exempt and non - exempt handbooks, sections: training and education assistance; and
workplace accommodation. Motion was unanimously carried. (Changes attached.)
GM Kumm presented change order No. W -002 to Wartsila contract. After discussion, a
motion was made by Commissioner Lenz, seconded by Commissioner Walser to
approve change order No. W -002 to Wartsila contract. Motion was unanimously carried.
(Change order attached.)
GM Kumm presented the bid tabulation for medium voltage metal -clad switchgear — unit
5. After discussion, a motion was made by Commissioner Walser, seconded by
Commissioner Lenz to approve the bid tabulation for medium voltage metal -clad
switchgear — unit 5 from E. A. Pedersen. Motion was unanimously carried. (Bid
tabulation attached.)
President Hantge presented requisition #004711 for a 2012 Dodge Durango for General
Manager, from Dodge of Burnsville in the amount of $27,174.04. After discussion, a
motion was made by Commissioner Lenz, seconded by Commissioner Walser to
approve requisition #004711 for a 2012 Dodge Durango for General Manager, from
Dodge of Burnsville in the amount of $27,174.04. Motion was unanimously carried.
(Requisition attached.)
Division Reports
Finance — Jared Martig
• Due to year -end reports, financials for January commission meeting may be
e- mailed separate from packet.
Natural Gas — John Webster
• Working with the EPA regarding their response to HUC's greenhouse gas
report dealing with CO2 emissions.
Business — Jan Sifferath
Nothing to report
Legal Update
Attorney Sebora reported on a presentation given by tenKsolar at last night's City
Council meeting regarding a proposed solar energy project for the City's
wastewater treatment plant. A special City meeting will take place next
Wednesday, January 4 at 5:30 regarding the proposed solar energy project.
Unfinished Business
None
New Business
None
On behalf of the Hutchinson Utilities Commission, President Hantge presented
Commissioner Walser with a plaque and meter lamp in appreciation for his 11 years of
service to the Commission.
President Hantge welcomed Leon Johnson as the new Commissioner starting January
2012.
There being no further business, a motion was made by Commissioner Lenz, seconded
by Commissioner Walser to adjourn the meeting at 4:02 p.m. Motion was unanimously
carried.
ATTEST:
Dwight Bordson, President
Leon Johnson, Secretary
Regular Meeting
December 28, 2011
Members present: President Robert Hantge; Commissioner Donald H. Walser;
Commissioner Craig Lenz; Attorney Marc Sebora; General Manager Michael Kumm
Members absent: Secretary Dwight Bordson and Vice President Paul Nordin
President Hantge called the meeting to order at 3:00 p.m.
Agenda item #4: Common Cup — Electrical Disconnect was moved to agenda item #2;
Agenda item #2: Ratify Payment of Bills was moved to agenda item #3; and
Agenda item #3: Approve Financial Statements /Budget Year -to -Date was moved to
agenda item #4.
The minutes of November 30, 2011 regular meeting, December 5, 2011 special meeting
and December 15, 2011 special meeting were reviewed. A motion was made by
Commissioner Walser, seconded by Commissioner Lenz to approve the minutes of
November 30, 2011 regular meeting, December 5, 2011 special meeting and
December 15, 2011 special meeting as written. Motion was unanimously carried.
President Hantge welcomed guest, Bev Bonte of Common Cup. Bev explained
Common Cup's mission to provide financial resources to those in need. Common Cup
provides help one time to a customer in need of no more than 75% of their bill at a $100
cap. The Hutchinson Utilities Commission disconnect and reconnect fees are $40 each.
Bev requested Hutchinson Utilities consider options in helping offset the disconnect and
reconnect fees as the $100 Common Cup donation mostly goes towards paying the
fees and not the customer's original outstanding utility bill. After discussion, the Board
recommended GM Kumm meet with Bev regarding her request and to discuss options.
The November 2011 payables were discussed. A motion was made by Commissioner
Lenz, seconded by Commissioner Walser to ratify the payment of bills in the amount of
$2,793,595.67 (detailed listing in payables book). Motion was unanimously carried.
GM Kumm presented the November 2011 financial statements /budget year -to -date
explaining overall it's been a very good year. A motion was made by Commissioner
Lenz, seconded by Commissioner Walser to approve the financial statements /budget
year -to -date. Motion was unanimously carried.
President Hantge presented GM Kumm's 2011 performance review. Commissioner
Walser noted there were also comments solicited from the Commissioners in addition to
the coworkers for the performance review. A motion was made by Commissioner Lenz,
seconded by Commissioner Walser to adopt GM Kumm's 2011 performance review.
Motion was unanimously carried. (Performance Review attached.)
Jan Sifferath presented the write off of bad debts at a total of $3,378.75. The write offs
have significantly decreased since 2008. A motion was made by Commissioner Lenz,
seconded by Commissioner Walser to approve the write off of bad debts at a total of
$3,378.75. Motion was unanimously carried. (Write Off List attached.)
GM Kumm presented the changes to the policy on payments of Hutchinson Utilities
Commission payables. This policy is reviewed yearly at the request of HUC auditors. In
addition to updating the year, the verbiage 'or HUC Financial Manager' was added to
the second paragraph. After discussion, a motion was made by Commissioner Walser,
seconded by Commissioner Lenz to approve the changes to the policy on payments of
Hutchinson Utilities Commission payables. Motion was unanimously carried. (Policy
attached.)
GM Kumm presented the parallel generation policy. This is a part of the ongoing policy
review and no changes were recommended. (Policy attached.)
GM Kumm presented policies and requirements booklet, sections: inserts with utility
bills; inaccessible utility equipment/meters; and identity theft — "red flag program ". No
changes were recommended.
GM Kumm presented changes to exempt and non - exempt handbooks, sections: training
and education assistance; and workplace accommodation. Recommended changes
were made to clean up verbiage for consistency. After discussion, a motion was made
by Commissioner Walser, seconded by Commissioner Lenz to approve changes to the
exempt and non - exempt handbooks, sections: training and education assistance; and
workplace accommodation. Motion was unanimously carried. (Changes attached.)
GM Kumm presented change order No. W -002 to Wartsila contract. After discussion, a
motion was made by Commissioner Lenz, seconded by Commissioner Walser to
approve change order No. W -002 to Wartsila contract. Motion was unanimously carried.
(Change order attached.)
GM Kumm presented the bid tabulation for medium voltage metal -clad switchgear — unit
5. After discussion, a motion was made by Commissioner Walser, seconded by
Commissioner Lenz to approve the bid tabulation for medium voltage metal -clad
switchgear — unit 5 from E. A. Pedersen. Motion was unanimously carried. (Bid
tabulation attached.)
President Hantge presented requisition #004711 for a 2012 Dodge Durango for General
Manager, from Dodge of Burnsville in the amount of $27,174.04. After discussion, a
motion was made by Commissioner Lenz, seconded by Commissioner Walser to
approve requisition #004711 for a 2012 Dodge Durango for General Manager, from
Dodge of Burnsville in the amount of $27,174.04. Motion was unanimously carried.
(Requisition attached.)
Division Reports
Finance — Jared Martig
• Due to year -end reports, financials for January commission meeting may be
e- mailed separate from packet.
Natural Gas — John Webster
• Working with the EPA regarding their response to RUC's greenhouse gas
report dealing with CO2 emissions.
Business — Jan Sifferath
Nothing to report
Legal Update
Attorney Sebora reported on a presentation given by tenKsolar at last night's City
Council meeting regarding a proposed solar energy project for the City's
wastewater treatment plant. A special City meeting will take place next
Wednesday, January 4 at 5:30 regarding the proposed solar energy project.
Unfinished Business
None
New Business
None
On behalf of the Hutchinson Utilities Commission, President Hantge presented
Commissioner Walser with a plaque and meter lamp in appreciation for his 11 years of
service to the Commission.
President Hantge welcomed Leon Johnson as the new Commissioner starting January
2012.
There being no further business, a motion was made by Commissioner Lenz, seconded
by Commissioner Walser to adjourn the meeting at 4:02 p.m. Motion was unanimously
carried.
LY Johnson, Secretary
I r M19
Bo on, President
From: Paul Nordin
To: Hutchinson Utilities Commission
Re: Annual review of General Manager Mike Kumm
Fellow Commissioners:
Previously you directed Commissioner Dwight Bordson and me to conduct an appraisal of General
Manager Mike Kumm's performance during the current calendar year. As has been the custom in
previous years we would like to show in the public record of the December regular meeting of the
Hutchinson Utilities Commission that such an appraisal was conducted.
Commissioner Bordson and I met with Mr. Kumm November 8, 2011. Prior to this date comments were
solicited from Mr. Kumm's coworkers regarding his performance in the areas of administration,
leadership, interpersonal skills, communication, motivation, self management, and organizational
knowledge and strategy.
Mr. Kumm's appraisal consisted of a summary of feedback received as well as our comments.
Commissioners, we find that Mr. Kumm's performance in the current calendar year satisfactorily meets
or exceeds our overall expectations.
We respectfully ask that you adopt these findings as Mr. Kumm's performance review for 2011.
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Amended December 29, 2010
Policy on Payments of Hutchinson Utilities Commission Payables
The Hutchinson Utilities Commission Accountant and Financial Manager are
hereby authorized to issue warrant(s) drawn from the proper funds.
(Resolution 153 was amended on March 25, 2009 and reads as follows):
Resolution 153 authorizes HUC Accountant or HUC Financial Manager to
transfer funds by wire or other electronic means.
Claims shall be paid upon proper presentation during the year 20 2012.
This policy shall be reviewed on an annual basis.
Amended November 30, 2010
Hutchinson Utilities Commission
Parallel Generation (40 kW or less) — Net Energy Billing
1. Effective In
All territories served by Hutchinson Utilities Commission.
2. Availability
Available for single -phase and three -phase customers where a part or all of the
electrical requirements of the customer are supplied by the customer's
generating facilities, where such facilities have a total generating capability of 40
kW or less, where such facilities are connected in parallel with the utility and
where such facilities are approved by the utility.
The budget payment plan will not be available to customers with parallel
generation.
3. Rate
The customer shall be billed monthly on a net energy basis and shall pay the
fixed charge and energy charge specified in the rate schedule under which he is
served. If, in any month, the customer's bill has a credit balance of $100 or less,
_the amount shall be credited to subsequent bills until a debit balance is
reestablished. If the credit balance is more than $100, the utility shall reimburse
the customer by check upon request. Monthly credits shall be computed by
taking the net excess kilowatt-hours produced times the sum of the current (P -1)
Rate schedule. (the average monthly cost of wholesale power to the City of
Hutchinson).
4. Metering and Services Facilities
A customer who is served under a regular rate schedule shall have any ratchet
and /or other device removed from his meter to allow reverse power flow and
measurement of net energy used. Customers eligible for net energy billing but
with existing metering facilities equipped with ratchets or other devices
preventing reverse registration (i.e. time -of -use metering facilities) may request
that the utility install the necessary metering to permit such billing.
5. Customer Obligation
See Sections 9 and 10.
1
Customer -Owned Generation Systems (Greater than 40 kW)
1. Effective In
All territories served by Hutchinson Utilities Commission.
2. Availability
Available for single -phase and three -phase customers where a part or all of the
electrical requirements of the customer are supplied by the customer's
generating facilities, where such facilities have a total generating capability of
greater than 40 kW and less than or equal to 100 KW, where such facilities are
connected in parallel with the utility. Customers not desiring to sell energy under
this rate have the right to negotiate a buy -back rate.
The energy rate indicated below is the minimum for electrical energy. Customers
with generating facilities greater than 100 kW can negotiate a buy -back rate.
Should the utility be unwilling to pay the minimum rate for electrical energy, the
utility shall agree to transport such electrical energy to another utility that will pay
such minimum rate. The utility shall recover actual costs of such transportation
from the generating customer.
The budget payment plan will not be available to customers with parallel
generation
3. Rate
Customers shall receive monthly payments for all electricity delivered to the utility
and shall be billed by the utility for metering and associated billing expenses
specified in the latest rates of the wholesale supplier unless the latest rates of the
wholesale supplier do not properly reflect avoided costs. In such event, the
Commission, upon request, may determine appropriate rates. The utility shall
have on file a copy of the latest customer -owned generation system rates for its
wholesale supplier.
4. Minimum Charge
The monthly minimum charge paid by the customer shall be the customer
charge.
5. Power Factor
The customer shall operate on a net power factor of not less than 94 percent. A
power factor penalty will apply if the power factor drops below 94 percent.
2
Customer -Owned Generation Systems (Greater than 40 kW) continued
6. Negotiated Rates
Customers with generation systems greater than 100 kW can negotiate a buy-
back rate.
Customers with generation systems greater than 40 kW and less than or equal to
100 kW have the right to negotiate a buy -back rate. The buy -back rate cannot be
greater than the full, avoided cost.
The following are the required procedure guidelines:
a. The utility must respond to the customer -owned generating system within
30 days of the initial written receipt of the customer -owned generating
system proposal and within 30 days of receipt of a subsequent customer -
owned generating system proposal,
b. The utility's rejection of the customer -owned generating system proposal
must be accompanied by a counter -offer relating to the specific subject
matter of the customer -owned generating system proposal, and
C. If the utility is unable to respond to the customer -owned generating system
proposal within 30 days it shall inform the customer -owned generating
system of:
1) Specific information needed to evaluate the customer -owned
generating system proposal.
2) The precise difficulty encountered in evaluating the customer -
owned generating system proposal.
3) The estimated date that it will respond to the customer -owned
generating system proposal.
d. The Commission may become involved in the utility negotiations upon
showing by either utility or the customer -owned generating system that a
reasonable conclusion cannot be reached under the above guidelines.
The Commission may provide a waiver to the guidelines and order new
negotiation requirements so that a reasonable conclusion can be reached.
e. A copy of all negotiated buy -back rates shall be given to the Commission.
These rates shall not be effective until, approved by the Commission.
3
Customer -Owned Generation Systems (Greater than 40 kW) continued
7. Charqes for Energy Supplied by the Utility
Energy supplied by the utility to the customer shall be billed in accordance with
the standard applicable rate schedules of the utility.
8. Maintenance Rate
A customer -owned generation facility may be billed lower demand charges for
energy purchased during scheduled maintenance provided written approval is
obtained in advance from the utility. Demand charges other than "Distribution
Demand" shall be prorated if maintenance is scheduled such that the utility does
not incur additional capacity costs. Said probation shall be demand charge times
the number of authorized days of scheduled maintenance divided by the number
of days in the billing period.
M
Customer -Owned Generation Systems (Less than 40KW and Greater than 40KW)
9. Contract Required
A contract is required between the utility and the customer -owned generation
facility. The contract shall specify safety, system protection, and power quality
rules that generators must comply with. Contracts with customer -owned
generation facilities selling energy under the standard (non- negotiated) rate have
no specific term or length. Contracts with customer -owned generation facilities
selling energy under a negotiated rate shall contain performance requirements
and be of sufficient length to ensure the utility avoids the costs for which the
customer -owned generation facility has been paid.
10. Customer Obligation
a. Metering Facilities
The customer shall furnish, install and wire the necessary service
entrance equipment, meter sockets, meter enclosure cabinets, or meter
connection cabinets that may be required by the utility to properly meter
usage and sales to the utility.
b. Interconnection Costs
The owner of the generating facility shall be required to pay all
interconnection costs, incurred by the utility. The owner shall pay said
costs, including financing costs, prior to the final service connection to the
Hutchinson Utilities electrical system.
C. Insurance Hold Harmless and Government Approval
The customer shall keep in force liability insurance, of at least
$300,000.00, against personal or property damage due to the installation,
interconnection, and operation of the customer's generating facility. The
customer shall provide proof of insurance to the utility on an annual basis.
The management of the utility, in its discretion, may require that the
customer post a bond or other type of security in an amount it deems
necessary to protect the assets of the utilities' system from damage
arising out of the operation of the customer's system.
The customer will hold the utility harmless and indemnify the utility from all
claims of damage whatsoever.
The customer is responsible for obtaining all governmental permits and
approvals.
5
d. Interconnection and Operation (Safety and Power Quality) Requirements
Electric Service to a customer -owned electric generation installation may
be disconnected for failure to comply with these requirements.
1) Interconnection of a generating facility with the utility system shall
not be permitted until application has been made to and approval
received from the electric utility. The utility may withhold approval
only for good reason such as failure to comply with applicable utility
or governmental rules or laws. The utility shall require a contract
specifying reasonable technical connection and operating aspects
for the parallel generating facility.
2) The utility may require that for each generating facility there is
provided between the generator or generators and the utility
system, a lockable load -break disconnect switch. For installations
interconnected at greater 600 volts a fused cutout switch may be
substituted, where practicable. The switches shall be accessible to
the utility for the purpose of isolating the parallel generating facility
from the utility system when necessary.
3) The utility shall require a separate distribution transformer for a
customer having a generating facility where necessary, for reasons
of public and employee safety or where the potential exists for the
generating facility causing problems with the service of other
customers. Ordinarily the requirement should not be necessary for
an induction -type generator with a capacity of 5 kW or less, or other
generating units of 10 kW or less that utilize line- connected
inverters.
4) Where necessary, to avoid the potential for a facility causing
problems with the service of other customers, the utility should limit
the capacity and operating characteristics of single -phase motors.
Ordinarily single -phase generators should be limited to a capacity
of 10 kW or less.
5) The utility shall require that each generating facility have a system
for automatically isolating the generator from the utility's system
upon loss of the utility supply, unless the utility desires that the local
generation be continued to supply isolated load. For synchronous
and induction generators such protection against continued
operation when isolated from the utility system will ordinarily consist
of over - current protection, fuse or circuit breaker, plus a voltage or
frequency controlled contactor which would automatically
disconnect the unit whenever its output voltage or frequency drifted
to
outside predetermined limits, such as plus or minus 10 percent of
the rated values.
Other suitable protective systems against abnormal voltages of
frequencies may be accepted by the utility.
6) The utility shall require that the customer discontinue parallel
generation operation when it so requests and the utility may isolate
the generating installation from its system at times: During such
times, Hutchinson Utilities Commission shall not be liable for
revenue lost by the customer.
a) When considered necessary to facilitate maintenance or
repair of utility facilities.
b) When considered necessary during system emergencies.
c) When considered necessary during such times as the
generating facility is operating in a hazardous manner, or is
operating such that it adversely affects service to other
customers or to nearby communication systems or circuits.
7) The owner of the generating facility shall be required to make the
equipment available and permit entry upon the property by electric
and communication utility personnel at reasonable times for the
purposes of testing isolation and protective equipment, and
evaluating the quality of power delivered to the utility's system; and
testing to determine whether the local generating facility is the
source of any electric service or communication systems problems.
8) The power output of the generating facility shall be maintained such
that the frequency and voltage are compatible with normal utility
service and do not cause that utility service to fall outside the
prescribed limits of Commission rules and other standard
limitations. V
9) The generating facility shall be operated so that variations from
acceptable voltage levels and other service impairing disturbances
do not result in adverse effects on the service or equipment of other
customers, and in a manner that does not produce undesirable
levels of harmonics in the utility power supply. The customer
agrees to disconnect the generating facility from the HUC
distribution system or reimburse HUC for the cost of necessary
system modifications if operation of the generating facility causes
radio, television, internet, or electrical service interference to other
7
customers, or interference with the operation of the HUC electrical
system.
10) The owner of the generating facility shall be responsible for
providing protection for the owner's installation equipment and for
adhering to all applicable national, state and local codes. The
design and configuration of certain generating equipment such as
that utilizing line- commutated inverters sometimes requires an
isolation transformer as part of the generating installation for safety
and for protection of generating facilities.
11) Customer agrees to locate the generating facility so as to not
interfere with the HUC distribution system. Customer agrees that
the installation shall be in compliance with all applicable electric
codes and the generating facility will be operated only after
installation has been inspected and approved by appropriate
authorities. Customer agrees to obtain all required permits, building
and zoning information, and applicable inspections.
12) The customer agrees to reimburse HUC for any addition,
modification, or replacement of any distribution components made
necessary by the customer's installation.
13) Customer agrees to effectively install grounding and provide surge
arrestor protection to prevent lightning damage to HUC distribution
system.
11. Utility Obligation
a. Meterinq Facilities
The utility shall own and install appropriate meter to record all flows of
energy necessary to bill in accordance with the charges and credits of the
rate schedule.
b. Notice to Communication Firms
Each electric utility shall notify telephone utility and cable television firms
in the area when it knows that customer -owned generating facility is to be
interconnected with its system. This notification shall be as early as
practicable to permit coordinated analysis and testing in advance of
interconnection, if considered necessary by the electric or telephone utility
or cable television firm.
n
12. Right to Appeal
The owner of the generating facility interconnected or proposed to be
interconnected with a utility system may appeal to the Commission should any
requirement of the utility service rules or the required contract be considered to
be excessive or unreasonable. Such appeal will be reviewed and the customer
notified of the Commission's determination.
W
Contract for Parallel Generation facilities
This contract is entered into
Commission (hereafter called "Utility ") and
(hereafter called "customer ")
The customer has
located at
RECITALS
by Hutchinson Utilities
installed electric generating facilities, consisting of
rated at kilowatts of electricity, on property
The customer is prepared to generate electricity in parallel with the Utility.
The customer meets the requirements of the Utilities rules on parallel generation and
any technical standards for interconnection the Utility has established that are
authorized by those rules.
The Utility is obligated under federal and Minnesota law to interconnect with the
customer and to purchase electricity offered for sale by the customer.
AGREEMENTS
The customer and the Utility agree:
1. The Utility will sell electricity to the customer under the rate schedule in force for
the class of customer to which the customer belongs.
2. Payment per KWH for Energy delivered to HUC, in Excess of Energy Used by the
customer.
$ see, #3 in Parallel Generation (40KW or less).
3. The rates for sales and purchase of electricity may change over the time this
contract is in force, due to actions of the Utility. The customer and the Utility
agree that sales and purchases will be made under the rates in effect each
month during the time this contract is in force.
4. The customer must operate its electric generating facilities within any rules,
regulations, and policies adopted by the utility, which provide reasonable
technical connection and operating specifications for the customer (Hutchinson
Utility Commission's rules and regulations applicable to parallel generation are
attached).
W]
5. The customer will operate its electric generating facilities so that they conform to
the national, state, and local electric and safety codes, and will be responsible for
the costs of conformance.
6. The customer is responsible for the actual, reasonable costs of interconnection
which are estimated to be $ The customer will pay the Utility in this
way
7. The customer will give the Utility reasonable access to its property and electric
generating facilities if the configuration of those facilities does not permit
disconnection or testing from the Utility's side of the interconnection. If the Utility
enters the customer's property, the Utility will remain responsible for its
personnel.
8. The Utility may stop providing electricity to the customer during a system
emergency. The Utility will not discriminate against the customer when it stops
providing electricity or when it resumes providing electricity.
9. The Utility may stop purchasing electricity from the customer when necessary for
the Utility to construct, install, maintain, replace, remove, investigate, or inspect
equipment or facilities within its electrical system. The Utility will notify the
customer before it stops purchasing electricity in this way.
10. The customer shall keep in force liability insurance, of at least $300,000.00,
against personal or property damage due to the installation, interconnection, and
operation of customer's generating facility and shall provide annual proof of the
insurance to the Utility. To protect the assets of the Utility's system, the customer
shall provide to the Utility security in the form of a in the
amount of $ . The customer agrees to indemnify and hold
harmless the Utility from all claims whatsoever arising from customer's
generating system.
11. This contract becomes effective when signed by the customer and the utility. This
contract will remain in force until either the customer or the Utility gives written
notice to the other that the contract is canceled. This contract will be canceled 30
days after notice is given.
12. This contract does not serve as an approval of the customer's generating system
for planning, zoning or permit purposes. The customer shall have the
responsibility to obtain proper approval and permits from the City of Hutchinson
or other governmental entities pertaining to the construction and operation of the
customer's generating system.
IF
13. This contract contains all the agreements made between the customer and the
Utility. The customer and the Utility are not responsible for any agreements other
than those stated in this contract.
THE CUSTOMER AND THE UTILITY HAVE READ THIS CONTRACT AND AGREE
TO BE BOUND BY ITS TERMS. AS EVIDENCE OF THEIR AGREEMENT, THEY
HAVE EACH SIGNED THIS CONTRACT BELOW ON THE DATE WRITTEN AT
THE BEGINNING OF THIS CONTRACT.
Customer
In
Date:
12
HUTCHINSON UTILITIES COMMISSION
go
Date:
EXEMPT
TRAINING AND EDUCATION ASSISTANCE
The Commission encourages its employees to seek individual and career development
through job - related training and education. The Commission provides financial
assistance for successful completion of qualifying programs and courses. Tuition,
registration fees and other course - related fees would be reimbursed after successful
completion of a course. To apply for education assistance, employees must submit a
request to their Director, Manager, or Supervisor no later than five working days prior to
registration. The Director, Manager or Supervisor and the General Manager must
approve the course, seminar, or program. Only courses that are job - related and provide
potential for career advancement with the UtilitiesHUC are eligible for reimbursement.
The following criteria must be met:
• The maximum amount of reimbursement will be $6,000 per calendar year. If
coursework or tuition exceeds this amount, then the Director or General Manager
will approach the Commission to request a waiver. To request a waiver, the
coursework must be directly related to the employee's position within the
company, or if the degree the employee is seeking is beneficial to the company;
in other words, it would be difficult to hire someone who already has that degree.
• Reimbursement is contingent on receiving a "pass" or minimum grade of "C ".
• Employee must study on their own time. Use of HUC computers is allowed in
accordance with the IT policy.
• An employee must remain employed at the Ut�iesHUC for twenty -four (24)
calendar months after completion of a course, or must repay to the- Wiliti HUC
all reimbursements received for the course.
EXEMPT
WORKPLACE ACCOMMODATION
The - Uti1ity1jUQ shall make workplace accommodations in accordance with state and
federal law. An employee who believes he or she qualifies for a reasonable
accommodation under the Americans with Disabilities Act (ADA) shall submit a request
for accommodations to the General Manager. The — Utility HUC shall engage in an
interactive process with employees who request accommodation in order to identify the
specific physical and mental abilities and limitations as they relate to essential job
functions; barriers to the performance of essential job functions; and how these barriers
could be overcome with reasonable accommodation. The employee may be requested
to provide written documentation from a healthcare provider relating to the employee's
medical condition and request for accommodation. If an employee refuses to provide
such written documentation and /or sign an authorization allowing the AgityHUC to
contact the healthcare provider, the t UC will evaluate the employee's request
based on the information available to the —U yHUC. T "it -HUC shall, in the
process of evaluating potential accommodations, determine which, if any, potential
accommodations present an undue hardship to the— +tyHUC or the department in
which the employee works.
NON - EXEMPT
TRAINING AND EDUCATION ASSISTANCE
The Commission encourages its employees to seek individual and career development
through job - related training and education. The Commission provides financial
assistance for successful completion of qualifying programs and courses. Tuition,
registration fees and other course - related fees would be reimbursed after successful
completion of a course. To apply for education assistance, employees must submit a
request to their Director, Manager, or Supervisor no later than five working days prior to
registration. The Director, Manager or Supervisor and the General Manager must
approve the course, seminar, or program. Only courses that are job - related and provide
potential for career advancement with the UtilitiesHUC are eligible for reimbursement.
The following criteria must be met:
• The maximum amount of reimbursement will be $6,000 per calendar year. If
coursework or tuition exceeds this amount, then the Director or General Manager
will approach the Commission to request a waiver. To request a waiver, the
coursework must be directly related to the employee's position within the
company, or if the degree the employee is seeking is beneficial to the company;
in other words, it would be difficult to hire someone who already has that degree.
• Reimbursement is contingent on receiving a "pass" or minimum grade of "C ".
• Employee must study on their own time. Use of HUC computers is allowed in
accordance with the IT policy.
• An employee must remain employed at the "sHUC for twenty -four (24)
calendar months after completion of a course, or must repay to the Wtiliti HUC
all reimbursements received for the course.
NON - EXEMPT
WORKPLACE ACCOMMODATION
The UtifityffiUQ shall make workplace accommodations in accordance with state and
federal law. An employee who believes he or she qualifies for a reasonable
accommodation under the Americans with Disabilities Act (ADA) shall submit a request
for accommodations to the General Manager. The— Util+tyHUC shall engage in an
interactive process with employees who request accommodation in order to identify the
specific physical and mental abilities and limitations as they relate to essential job
functions; barriers to the performance of essential job functions; and how these barriers
could be overcome with reasonable accommodation. The employee may be requested
to provide written documentation from a healthcare provider relating to the employee's
medical condition and request for accommodation. If an employee refuses to provide
such written documentation and /or sign an authorization allowing the Jti1it ,HUC to
contact the healthcare provider, the ti4tyFHUC will evaluate the employee's request
based on the information available to the hi*HUC. Thy- U*i'HUC shall, in the
process of evaluating potential accommodations, determine which, if any, potential
accommodations present an undue hardship to the UtftHUC or the department in
which the employee works.
CHANGE ORDER No. W -002
Date of Issuance: 15 December 2011 Effective Date:
Project: Engine Generator Set Owner: Hutchinson Utilities Owner's Contract No.:
Procurement Commission
Wartsila Project: P0803765 Quotation — Q0801707A4R Effective Date of Contract: September 14, 2011
Contractor: Wartsila North America, Inc. Engineer's Project No.: 155503 -002
The Contract Documents are modified as follows upon execution of this Change Order:
Description:
Delete one (1), 3,000 gallon cooling water surge tank as described in Exhibit A (A2.5) and Exhibit B (A2.5)
Decrease $6,100.00 battery system upgrade, Increase $3,000.00
Attachments (list documents supporting change):
Battery system upgrade for three (3) engine operation.
CHANGE IN CONTRACT PRICE: CHANGE IN CONTRACT TIMES:
Original Contract Price: riginal Contract Times: [] Working days ❑Calendar ys
bstantial completion (days or date):
$8,290,024.00 Rea or final payment (days or date):
[grease] Decrease from previously approved [Increase] rease] from previously approve hange Orders
Change Order No. W -001: No. to N/A
Substantial comp lion (days):
$440,000.00 Ready for final pa t (days):
Contract Price prior to this Change Order: Contract Times prior to this h e Order:
Substantial completion (da r date): _
$7,850,024.00 Ready for final paymen days o ate): _
[Incfease] Decrease of this Change Order: [increase] [Decrease of this Change O er:
Substantial co etion (days or date): _
$3,100.00 Ready for fqQ payment (days or date): _
Contract Price incorporating this Change
Order: Xeady mes with all approved Change Orders:
al completion (days or date):
$7,846,924.00 r final payment (days or date):
REC LADED: [ ACCEPTED: % ACCEPTE
ByJ:5 ` r By: i�G1c'�dl� ( -,.,_ By:
gineer (Authorized Signature) Owner (Authorized Signature) C tr for (Authorized Signature)
Da December 2011 Date: I Z- z 8° I Date: Dec- 20, 201 t
Approved by Funding Agency (if applicable):
N/A Date: - --
HUC EG Set Procurement
Battery System Changes to be incorporated inito Change order W -002
Booty, Jim
From: jukka.kuitunen @wartsila.com
Sent: Sunday, December 18, 2011 11:03 AM
To: Booty, Jim
Cc: slancaster @ci.hutchinson.mn.us; Anna.Jarowicz @wartsila.com
Subject: FW: DC System
Changes to 24VDC- system from 1 to 3- engines:
Rectifiers: from N +1 to N +2
Rectifier output: from 100A to 150A
More output MCB's: 4x40A, 4x20A and 2x1 0A
Capacity of VRLA batteries: from 500Ah to 800Ah
Bigger fused switch for batteries: from 100A to 200A
Regards
Jukka Kuitunen
Wartsila North America Inc.
Cell. 713- 504 -7216
From: Booty, Jim
To: Jarowicz, Anna; slancaster (a)ci.hutchinson.mn.us
Sent: Fri Dec 16 23:47:512011
Subject: RE: DC System
Anna
The description below is from Exhibit B A.8.3. When providing for 3 Engines how will this change. More chargers,
increased Ah, additional breakers, additional monitoring,...? jwb
Each DC system for engine control consists of:
Battery set
Type Maintenance free sealec
Capacity Approxi
Voltage (DQ
Charger(s) in N- PI configuration
Incl.
Battery main switch
DC system monitoring unit
Miniature circuit breakers for CSC feeders
HUC CO W -002
Iof3
Battery System Changes to be incorporated inito Change order W -002
From: Anna.JarowiczOwartsila.com [ mailto :Anna.JarowiczC@wartsila.coml
Sent: Friday, December 16, 2011 1:48 PM
To: Booty, Jim; slancaster(&ci.hutchinson.mn.us
Subject: RE: DC System
Jim,
Is the description below adequate?
Description:
Increase capacity of DC System for engine and auxiliary control from supporting one engine as defined in Exhibit B
(Section A8.3) to supporting three engines.
Cost:
$3000.00
BR,
AJ
From: Booty, Jim [mailto:Jim.BootyCa)hdrinc.coml
Sent: Friday, December 16, 2011 1:24 PM
To: Jarowicz, Anna; slancaster (abci.hutchinson.mn.us
Subject: RE: DC System
Anna
We will accept your suggestion. For the preparation of the CO please provide a brief description of the change (Size,
Quantity etc.) with a $$ amount and we will incorporate it into CO W -002 and reissue.
Alternatively if the information asked for is not available we'll make 2 Changes Orders. Jwb
From: Anna.Jarowicz(a)wartsila.com [ mai Ito: Anna.Jarowicz(abwartsila.coml
Sent: Friday, December 16, 2011 10:24 AM
To: Booty, Jim; slancaster anci.hutchinson.mn.us
Subject: HUC: DC System
Importance: High
Steve and Jim,
We are getting prepared to order the DC system (batteries). In the process we asked for a system for 1 engine and also
for 3 engines. The difference in price is $3,000.
HUC CO W -002 2 of 3
Battery System Changes to be incorporated inito Change order W -002
I would recommend to go with the system that is capable of supporting 3 engines, this way you would not have to spend
extra money and time with your extensions. This decision is up to you.
We do have a credit to give you for the surge tank but we could combine the two changes together and give you a credit
of $3100.
Please let me know what you think.
Best Regards,
Anna jarowiez
Wartsila north america, inc.
W Tel: +1 281 233 6214
J Mob: +1713 304 6522
0 E -mail: anna.iarowicz @wartsila.com
This email (including attachments) is confidential, maybe legally privileged, and is intended solely for the use of the intended addressee. If you suspect that you have
received this email by mistake, please promptly notify the sender by telephone or by return email and destroy all copies of this email. Please note that reading,
disclosing, or any other kind of processing of this email by anyone else but the intended addressee is strictly prohibited and may also be unlawful.
HUC CO W -002
3of3
rVII 11,
Hutchinson Utilities Commission
Bid Tabulation for
Medium Voltage Metal -Clad Switchgear -Unit 5 Bids
December 20, 2011
V
Recommend: E. A Pederse
Bid Item 1
Bid Item 2
Total
E.A Pedersen
$136,410.00
$36,221.00
$172,631.00
Harold K Stoltz Co
$158,025.00
$34,125.00
$192,150.00
Quade Electric
$183,340.00
$63,480.00
$246,820.00
Wesco (Shallbetter)
$210,500.00
$46,400.00
$256,900.00
E2 Electric Service Inc.
$213,798.92
$56,326.00
$270,124.92
Wesco (ABB)
$163,990.00
$116,000.00
$279,990.00
Myers Power Products, Inc
$138,159.00
No Bid
Incomplete
Opend By:
SCE
Date:
Witness
GL
Date:
I / 2 /a O T
V
Recommend: E. A Pederse
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