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01-27-1997 HUCMl© Regular Meeting January 27, 1997 All Commissioners were present. Also present were Manager Kadrmas and Counsel G. Barry Anderson. President Ward called the meeting to order at 3:00 p.m. The minutes of December 30, 1996 regular meeting were reviewed. A motion was made by Commissioner Gilmer, seconded by Commissioner Ackland to approve the minutes as written. Motion was unanimously carried. The minutes of December 31, 1996 special meeting were reviewed. A motion was made by Commissioner Cornell, seconded by Commissioner Ackland to approve the minutes as written. Motion was unanimously carried. The December payables were discussed. A motion was made by Commissioner Ackland, seconded by Commissioner Carls to accept the payables in the amount of $1,506,710.36 (detailed listing in payables book). Motion was unanimously carried. The 1996 year -to -date (thru December) financial and budget reports were reviewed. A motion was made by Commissioner Cornell, seconded by Commissioner Gilmer to accept the financial and budget reports. Motion was unanimously carried. Mgr. Kadrmas presented recommendation on quotations for 1997 Service Truck - Chassis (bid tabulation attached). After discussion, a motion was made by Commissioner Cornell, seconded by Commissioner Ackland to award the bid to Plowman's, Inc. in the amount of $21,879. Motion was unanimously carried. Mgr. Kadrmas presented recommendation on quotations for 1997 Service Truck - Body (bid tabulation attached). After discussion, a motion was made by Commissioner Cornell, seconded by Commissioner Gilmer to award the bid to ABM Equipment and Supply Inc. in the amount of $35,281. Motion was unanimously carried. Mgr. Kadrmas presented recommendation on quotations for 15 KV Cable For Feeders 15 & 16 (bid tabulation attached). After discussion, a motion was made by Commissioner Ackland, seconded by Commissioner Carls to award the bid to RESCO in the amount of $71,174.06. Motion was unanimously carried. Mgr. Kadrmas presented recommendation on quotations 15 KV Cable For Stock (bid tabulation attached). After discussion, a motion was made by Commissioner Cornell, seconded by Commissioner Carls to award the bid to WESCO in the amount of $48,600. Motion was unanimously carried. Mr. Norman Zachow, a resident of Hutchinson, was welcomed to the meeting. He expressed his disapproval of our turning his power off at his rental property at 106 Second Avenue Southwest, and then having to pay a $40 fee to have a plumber re -light the pilot light on that furnace. Our policy was explained to Mr. Zachow that when a tenant informs us they're moving out and wants the account taken out of their name, power will be disconnected if we do not have a signed landlord agreement from the landlord in order for us to put the account back into the landlord's name, thus preventing disconnection. Mr. Zachow was informed that if he would sign the 'landlord agreement', the power would not be disconnected again. He said he'd look over the agreement again, but asked for reimbursement of the $40 because he feels we should have called him and informed him of the disconnection. After discussion, a motion was made by Commissioner Cornell, seconded by Commissioner Gilmer to credit Mr. Zachow's account the amount of $40, after he signs and returns the Landlord Agreement. Motion was unanimously carried. Commission asked Counsel Anderson to look into our policy and the liability of disconnecting in the winter time. Mgr. Kadrmas discussed the MN Department of Public Service /Energy Conservation & Load Management Programs. Mgr. Kadrmas will contact the MN Department of Public Service and ask for a 30 day extension from the February 1 ' deadline to file the 1997 plan, at which time the auditors will have completed our audit. The Commission asked Mgr. Kadrmas to research the possibility of the Utilities keeping 15 percent. It was decided to submit a proposal at the February meeting to modify the existing program and to offer monetary value for installing high efficiency furnaces and high efficiency air conditioners. General Manager's Report: The LM6000 will be taken apart and will be down for about three weeks. Should be back around March 1, 1997. The inlet guide vanes have been reordered for Unit #8. Should be here around the middle of February. It might be about $30,000 to finish the job. Counsel Anderson discussed the Indian Oil settlement agreement as follows: Indian, et al would receive $15,000 in lieu of plugging. Indian, et al will retain the existing 320 CMI pumping unit and Arrow 106 engine on the Thomas #2. M Indian, et al agree to release it current leasehold position in Section 16. Plaintiffs agree to dismiss their action against Indian and its et als. The Commission Board asked if the `average annual adjustment' could be calculated and shown on the operating revenue report. Old Business: Counsel Anderson asked the Commission for a motion, as a matter of routine, to approve documentation of the settlement regarding the arbitration with Deltak - Fischback- Gagnon. The check has been issued. After discussion a motion was made by Commissioner Gilmer, seconded by Commissioner Cornell to approve the documentation of the $75,000 settlement check. Counsel Anderson updated the Commission on the Coster issue. Coster may agree to a settlement. • Discussion took place regarding the absence of Commissioner Ackland from meetings while he's in Wisconsin. The Commission will work around his schedule and at the February 24th meeting, the March meeting date will be re- scheduled. All monthly meetings through June will be re- scheduled month by month. May's meeting date of May 26' is Memorial Day Holiday, so that meeting has been re- scheduled for Tuesday, May 27th. President Ward will not be able to attend February's Commissioners Meeting. Counsel Anderson checked into the By -Laws and found an informal ruling stating that if a Commissioner misses three meetings in a year, he's out, but that is not in the City Charter. New Business: • Commissioner Ackland asked if he could be removed from the City of Hutchinson Planning Commission because he has to use vacation to attend both the Planning Commission Board Meetings and the Utilities Commission Meetings. After discussion a motion was made by Commissioner Ackland, seconded by Commissioner Gilmer to have Counsel Anderson draft a letter to the City Council with the recommendation of removing the mandatory appointment of a Hutchinson Utilities Commissioner to serve on the City of Hutchinson Planning Commission Board. Motion was unanimously carried. President Ward will check into why Commissioner Ackland has been instructed to use vacation to attend either meeting. E There being no further business, a motion was made by Commissioner Ackland, seconded by Commissioner Cornell to adjourn the meeting at 4:55 p.m. Motion was unanimously carried. ATTEST: TUQlas Ward, President I � V ii Mike Carls, Secretary J I u