12-29-1997 HUCMRegular Meeting
December 29,1997
Commissioners Ward, Gilmer Carls and Wetterling were present. Absent was
Commissioner Ackland. 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 November 24, 1997, regular meeting were discussed. Commissioner
Carls inquired about the pro rata check from Insurance Planners. Mgr. Kadrmas
explained that the excess liability has been canceled and we'll receive the check
after the first of the year. A motion was made by Commissioner Carls, seconded by
Commissioner Gilmer to approve the minutes as written. Motion was unanimously
carried.
The November payables were reviewed. A motion was made by Commissioner
Wetterling, seconded by Commissioner Gilmer to accept the payables in the amount
of $1,059,799.37(detailed listing in payables book). Motion was unanimously
carried.
The 1997 year- to-date (thru November) financial and budget reports were discussd.
Manager Kadrmas reported that because of the effects of El Nino, gas prices have
plummeted. Its about half the price as last year. Manager Kadrmas also mentioned
that our auditors will be here the week of January 26, 1998, to audit our books. A
motion was made by Commissioner Wetterling, seconded by Commissioner Carls
to accept the financial and budget reports. Motion was unanimously carried.
Don Nelson, Electric Distribution Superintendent and John Webster, Natural Gas
Distribution Superintendent presented their year -in- review reports. Manager
Kadrmas reported for the Power Production Department. (Reports attached.)
Manager Kadrmas presented requisition #10422 for flanged equimeter regulators
for the natural gas distribution department. After discussion, a motion was made by
Commissioner Carls, seconded by Commissioner Gilmer to approve the requisition
to Marshall W. Nelson & Associates, Inc. in the amount of $10,117.25. Motion was
unanimously carried.
Manager Kadrmas presented requisition #10426 for shielded power cable for the
electric distribution department. After discussion, a motion was made by
Commissioner Gilmer, seconded by Commissioner Wetterling to approve the
requisition to Burmeister Electric Company in the amount of $10,618.26. Motion was
unanimously carried.
Manager Kadrmas presented recommendation for 69 kV conduit system. (Bid tabulation
attached). After discussion, a motion was made by Commissioner Carls, seconded by
Commissioner Wetterling to award the bid to Juul Contracting Company in the amount of
$64,716.90. Motion was unanimously carried.
Before the following request for bids took place, Commission Board asked Counsel
Anderson if after explanation of each request for bids, one motion can be made to
advertise for all bids. Counsel Anderson said it can be done that way. Manager Kadrmas
presented the following requests for bids:
• Phase 2 Construction 190 PSIG Feeder Line
• 1998 Trencher Unit With Attachments And Trailer
• Synchronous Circuit Switcher
• 69 kV Capacitors
• Plant 1 Transformer Repair
After discussion of all requests, a motion was made by Commissioner Wetterling,
seconded by Commissioner Gilmer to advertise all requests for bids. Motion was
unanimously carried.
General Manager's Report
• Power Purchase And Sale Agreement with Enron Power Marketing has been
finalized, executed and returned.
• Present contract on Unit 9 is for four years with United Power Association.
• Reported on the progress of the new bridge on Fifth Avenue Southeast.
• Received a $30,000 check from Lovegreen Turbine Services toward the $106,000,
which is to be returned.
• Received a $52,000 rebate check from the City through the League of Minnesota
Cities regarding our property and casualty insurance.
Old Business: None
New Business:
Tree issue with United Power Association and property owner, Mr. Lindhorst.
There being no further business, a motion was made by Commissioner Wetterling,
seconded by Commissioner Gilmer to adjourn the meeting at 4 :35 pm. Motion was
unanimously carried.
ATTEST:
C
Ward, President
Mike Carls, Secretary
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HUTCHINSON UTILITIES
COMMISSION
NATURAL GAS DIVISION
ANNUAL DEPARTMENT REVIEW
JOHN C. WEBSTER
NATURAL GAS SUPERINTENDENT
DECEMBER 29, 1997
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DISTRIBUTION MAINTENANCE
1. DRS Replacement - Floor Care
Installed new District Regulator
Station. Previous station did
not meet DOT code. New station
provides additional capacity to
Texas Ave. and the northwest
quadrant of Hutchinson.
2. DRS Installation - N. High Dr. Installation of District Regulator
Station on N. High Dr. to allow
Hutchinson Utilities to serve
additional customers with natural
gas at distribution pressure.
3
0
5
TBS No. 2 Design and installation of Town
Border Station No. 2 allows
Hutchinson Utilities to adequately
serve 3M and the future growth
of Hutchinson with a continuous
supply of natural gas.
Metering Facilities
Hutchinson Technology. Inc
Approximately 10 meter sets
were built or rebuilt in 1997. All
meter sets that require a meter
larger than a 425 cfh diaphragm
meter receive a fully welded set.
Due to HTI's building expansion,
Hutchinson Utilities was required
to retire 990 ft. of 3" steel
distribution main. 1000 ft. of 4"
plastic main and 580 ft. of 2"
plastic service line was installed
[1
6. _Minnesota Mining and
Manufacturing
7. Hutchinson Schools
to relocate the upgraded
metering facilities.
1165 ft. of 6" high density
polyethylene distribution main
was installed to serve 3M's
building expansion. A 2" service
line was installed to serve a small
Thermal Oxidizer, a 4" service
line was installed to serve a large
Thermal Oxidizer, and a 4"
service line was installed to serve
the Focus Annex. The metering
facilities to the Focus Annex were
relocated in December due to a
mistake made by 3M.
Metering facilities were upgraded
at the Park Elementary School,
the High School, the Middle
School, and West Elementary
School due to building upgrades.
Department Of Transportation Mandated Maintenance,Programs
The following DOT mandated operations and maintenance programs were
completed in 1997 by the natural gas department;
192.465 External Corrosion Control - Monitoring
192.609 Class Location Study
192.625 Odorization of Natural Gas
192.705 Transmission Lines - Patrolling
192.706 Transmission Lines - Leakage Surveys
1
:1
192.721
192. 723
192.739
192.741
192.743
192.745
192.747
192.459
192.501
Distributio Systems - Patrolling
Distributio i Systems - Leakage Surveys
- Business District
- Distribution System
Inspection and Testing of Pressure Limiting and
Regulating Stations
Inspection and Testing of Telemetering and
Recording tations
Testing of elief Valves
Valve Main enance - Transmission System
Valve Maintenance - Distribution System
External Corrosion Control
System Pressure Test Requirements
of Dia hraw and R
The Natural Gas Dept. at Hutchi son Utilities Commission currently
performs all residential through i dustrial meter testing in- house. Prior to
1993 all meters larger than residential size were intested and calibrated
by an outside firm.
The Natural Gas Department tes ed th
meters in 1997:
Residential (Diaphr gm)
Commercial (Diaph agm)
Commercial /Industr al
(Rota )
e following quantity, by class, of
320 meters
53 meters
45 meters
Midwest Regional Gas Task Force Association
The MRGTFA is an alliance of small Minnesota and Wisconsin natural
gas utilities. Quarterly meetings are conducted to protect the interests of
Hutchinson Utilities, it's generation facilities, and its customers. Northern
Natural Gas declined on filing their rate case in 1997. Northern is
mandated by the FERC to file before March 1, 1998. The Natural Gas
Superintendent from Hutchinson Utilities Commission was nominated to
serve as the vice - chairman of this association in 1998.
NISB (New, Innovative Solutions for Business)
Northern Natural Gas began initiating a revenue process redesign in
1996. Northern began this process by involving their customers, both
large and small natural gas utilities, natural gas marketers, producers,
and end users.
Several "brainstorming" meetings were held in Kansas City with the end
result the nomination of a small board of advisors, the NISB board. The
Natural Gas Superintendent from Hutchinson Utilities was elected to
represent all of the small natural gas utilities on Northern Natural's
system.
Monthly teleconferences are held amongst all of the members on the
NISB board to ensure that the best interests of all involved are served.
Training Attendance - Natural Gas Department
Steve Sturges MGA Leak Detection Seminar
MGA Distribution Roundtable
Wayne Barreth MGA Leak Detection Seminar
MGA Annual Gas Operations
Conference
Jon Hombach MGA Annual Gas Operations
Conference
Dexter Klitzke MGA Annual Gas Operations
Conference
John Webster MNOPS 1997 Spring Conference
MGA Distribution Roundtable
The Natural Gas Division began in house training utilizing the Midwest
Gas Association's "Operator Qualification Training Course" in 1997 in
preparation for the yet to be mandated, Operator Qualification Training
ruling from the DOT.
1
POWER PRODUCTION DIVISION
1997
YEAR IN REVIEW
1997 was a busy year for both of this divisions Operations and Maintenance Departments. With a
47% increase in total generation over 1996, the teardown inspection of Unit # 1 s gas turbine and
various other projects.
UNIT #1- Completed its third year of commerical operation. It was operated 5013 hours and
produced 188,783 Mega -watts of electricity. Total operating time on the gas turbine is 15,572
hours and on the steam turbine is 12,285 hours.
This past spring, the LM6000 was disassembled. The high pressure turbine blades were replaced,
along with the stage 3 LPC shrods, bushings and stage 4 bumbers. The combuster, was also
inspected and found to be in excellant condition.
In November, the new Whitaker fuel system was installed.
Also, maint., continuing work on the 40GPM Demineralizer System.
UNIT #8- Was operated for 1071 hours this year.
The unit was overhaul in 1996, Since that time, we have had a problem with the #2 bearing
temperture. In March, we hired a GE Field Engineer, to supervise our personnel changing out the
units inlet guide vanes. During that time, it was discovered that the orfice in the #2 bearings
cooling air line was in the wrong location ( the orginal contractor, had missed this).
The above orfice correction has improved our temperture problem. But, we are planning on
revisiting the #2 bearing area, this coming March, 1998.
PROJECTS IN PROGRESS:
1. PLANT #1 MAIN TRANSFORMER REPLACEMENT. The new 37MVA transformer was
ordered. Completion date is March, 98,
2. HTI SUBSTATION, planning and ordering material stage. Construction is scheduled to start in
April, 98 with a completion date of July, 1998.
3. 69KV SWITCHING STATION. The new Breaker has been ordered. Completion date is early
summer, 1998.
OTHER:
PLANT #1 WELLHOUSE- was demolished
3M TRANSFORMER- bushing leaks were repaired
HOSTED THE MMUA DIESEL WORKSHOP
COMPLETED THE ABORT GROUND FUEL OIL TANKS INSPECTIONS. As per, MPCA
requirements
neat page>
ONGOING:
MAINTENANCE and PREVENTATIVE MAINTENANCE
INHOUSE TRAINING PROGRAMS
SCHOOLS/ SEMINAR ATTENDANCE
FYI:
The Operations Departments, System Controllers, issued approximately 2600 Powerstat Cards in
1997, during the weekday evenings and on weekends.
Attached, you'll find a 1996/97 comparison graph and figures, as per the total generation
produced.
Walter Hombach
Power Production Superintendent
December 26, 1997
CC: Clarence Kadrmas
HUC- Commissioners
Total Generation
Unit #1
Unit #2
Unit #3
Unit #4
Unit #5
Unit #6
Unit #7
Unit #8
Unit #9
Total MW Sold
Capacity Sales
Capacity Purchases
" 1997 Figures through November
Total Generation
Unit #1
Unit #2
Unit #3
Unit #4
Unit #5
Unit #6
Unit #7
Unit #8
Unit #9
Total Generation
1996
MW
Fuel Cost
Cost/MW
136607
$2,105,925.24
$15.42
134709
$2,050,980.05
$15.23
2
$133.89
$66.95
613
$13,135.01
$21.43
696
$21,188.97
$30.44
2
$460.59
$230.30
1
$84.31
$84.31
282
$9,215.49
$32.68
274
$7,549.66
$27.55
28
$3,177.27
$113.47
MW
Revenue
Cost/MW
17981
$302,073.00
$16.80
$44,000.00
$500,000.00
Total Generation
0
Generation Fuel Cost
y
0
U
m
O
50 100 150 200
MW
Thousands
0 1 2 3 4
I Dollars
Millions
I11111 1996
01997
N
d
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m
0
F
Total Sales
■ 1996
■ 1997
0 10 20 30 40 50
Dollars
Thousands
01996
N 1997
1997'
MW
Fuel Cost
Cost/MW
200339
$3,495,990.73
$17.45
188783
$3,136,496.49
$16.61
14
$186.91
$13.35
571
$18,544.47
$32.48
109
$4,776.43
$43.82
1
$132.52
$132.52
2
$36.99
$18.50
225
$7,921.67
$35.21
9258
$234,064.63
$25.28
1376
$93,830.62
$68.19
MW
Revenue
Cost/MW
39966
$688,663.55
$17.23
$254,000.00
$0.00
0
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ADVERTISEMENT FOR BIDS
FOR
PHASE 2 CONSTRUCTION
190 PSIG FEEDER LINE
HUTCHINSON UTILITIES COMMISSION
HUTCHINSON, MINNESOTA
Notice is hereby given that the Hutchinson Utilities Commission of the City of
Hutchinson, Hutchinson, Minnesota, hereinafter referred to as the Owner, will receive
sealed Bids at the Hutchinson Utilities office until on the day of , 1998,
and will publicly open and read aloud such Bids on the following work and equipment:
"PHASE 2 CONSTRUCTION -190 PSIG FEEDER LINE"
Proposals shall be properly endorsed and delivered in an envelope marked,
"PHASE 2 CONSTRUCTION - 190 PSIG FEEDER LINE" and shall be addressed to:
Hutchinson Utilities Commission of the City of Hutchinson, 225 Michigan Street,
Hutchinson, Minnesota 55350.
All proposals shall be submitted in duplicate on the Bidder's own letterhead in
facsimile of the Proposal Form enclosed in the Specifications, or by utilizing the Proposal
Form enclosed with the Specifications by typing the official name of the Bidder at the top
of the form.
Each proposal shall be accompanied by a Bid Bond, made payable to the
Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota, in the
amount of five per cent (5 %) of the Bid, as a guarantee that the Bidder will enter into the
proposed Contract and provide a Performance Bond after his Bid shall have been
accepted.
The successful Bidder shall fumish a Performance Bond in an amount equal to one
hundred per cent (100 %) of the Contract price to the Owner prior to the approval of the
Contract.
No Bidder may withdraw his Bid or Proposal for a Period of thirty (30) days after date
of opening of Bids.
At the aforementioned time and place, or at such later time and Place as the Owner
then may fix, the Owner will act upon Proposals received and with its sole discretion may
award Contract(s) for the furnishing of said equipment.
The work shall be started within ten (10) days after award of Contract(s).
Specifications and Plans are available at the Office of the Hutchinson Utilities, 225
Michigan Street, Hutchinson, Minnesota 55350.
The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson,
Minnesota reserves the right to reject any and all bids.
By
oug Ward, President
ATTESTED
By, 7) to
Mike Carls, Secretary
Date / � '�nl 5�- 7
ADVERTISEMENT FOR BIDS
FOR
1998 TRENCHER UNIT WITH ATTACHMENTS AND TRAILER
HUTCHINSON UTILITIES COMMISSION
HUTCHINSON, MINNESOTA
Notice is hereby given that the Hutchinson Utilities Commission of the City of
Hutchinson, Hutchinson, Minnesota, hereinafter referred to as the Owner, will receive
sealed Bids at the Hutchinson Utilities office until on the day of ,
1998, and will publicly open and read aloud such Bids on the following work and
equipment:
"1998 TRENCHER UNIT WITH ATTACHMENTS AND TRAILER"
Proposals shall be properly endorsed and delivered in an envelope marked,
111998 TRENCHER UNIT WITH ATTACHMENTS AND TRAILER" and shall be addressed
to: Hutchinson Utilities Commission of the City of Hutchinson, 225 Michigan Street,
Hutchinson, Minnesota 55350.
All proposals shall be submitted in duplicate on the Bidder's own letterhead in
facsimile of the Proposal Form enclosed in the Specifications, or by utilizing the Proposal
Form enclosed with the Specifications by typing the official name of the Bidder at the top
of the form.
Each proposal shall be accompanied by a Bid Bond, made payable to the
Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota, in the
amount of five per cent (5 %) of the Bid, as a guarantee that the Bidder will enter into the
proposed Contract after his bid has been accepted.
No Bidder may withdraw his Bid or Proposal for a Period of thirty (30) days after date
of opening of Bids.
At the aforementioned time and place, or at such later time and Place as the Owner
then may fix, the Owner will act upon Proposals received and with its sole discretion may
award Contract(s) for the furnishing of said equipment.
The work shall be started within ten (10) days after award of Contract(s).
Specifications and Plans are available at the Office of the Hutchinson Utilities, 225
Michigan Street, Hutchinson, Minnesota 55350.
The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson,
Minnesota reserves the right to reject any and all bids.
By &LW,15�1
Doug W d, President
Date /09- i? �? 7
ATTESTED
Mike Carls, Secretary
Date
1
ADVERTISEMENT FOR BIDS
FOR
SYNCHRONOUS CIRCUIT SWITCHER
HUTCHINSON UTILITIES COMMISSION
HUTCHINSON, MINNESOTA
Notice is hereby given that the Hutchinson Utilities Commission of the City of
Hutchinson, Hutchinson, Minnesota, hereinafter referred to as the Owner, will receive
sealed Bids at the Hutchinson Utilities office until 10:00 a.m. on the 20th day of
January, 1998, and will publicly open and read aloud such Bids on the following work and
equipment:
"SYNCHRONOUS CIRCUIT SWITCHER"
Proposals shall be properly endorsed and delivered in an envelope marked,
"SYNCHRONOUS CIRCUIT SWITCHER" and shall be addressed to: Hutchinson Utilities
Commission of the City of Hutchinson, 225 Michigan Street, Hutchinson, Minnesota 55350.
All proposals shall be submitted in duplicate on the Bidder's own letterhead in
facsimile of the Proposal Form enclosed in the Specifications, or by utilizing the Proposal
Form enclosed with the Specifications by typing the official name of the Bidder at the top
of the form.
Each proposal shall be accompanied by a Bid Bond, made payable to the
Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota, in the
amount of five per cent (5 %) of the Bid, as a guarantee that the Bidder will enter into the
proposed Contract after his Bid shall have been accepted.
No Bidder may withdraw his Bid or Proposal for a Period of thirty (30) days after date
of opening of Bids.
At the aforementioned time and place, or at such later time and Place as the Owner
then may fix, the Owner will act upon Proposals received and with its sole discretion may
award Contract(s) for the furnishing of said equipment.
The work shall be started within ten (10) days after award of Contract(s).
Specifications and Plans are available at the Office of the Hutchinson Utilities,
225 Michigan Street, Hutchinson, Minnesota 55350.
The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson,
Minnesota reserves the right to reject any and all bids.
By 12,2
Doug d, President
Date ,r',? 29 - 9 7
ATTESTED
By 1 2? At,
Mike Carls, Secretary
Date /'� -'R 9-
1
ADVERTISEMENT FOR BIDS
FOR
69 kV CAPACITORS
HUTCHINSON UTILITIES COMMISSION
HUTCHINSON, MINNESOTA
Notice is hereby given that the Hutchinson Utilities Commission of the City of
Hutchinson, Hutchinson, Minnesota, hereinafter referred to as the Owner, will receive
sealed Bids at the Hutchinson Utilities office until 10:30 a.m. on the 20t day
of January, 1998, and will publicly open and read aloud such Bids on the following work
and equipment:
"69 W CAPACITORS"
Proposals shall be properly endorsed and delivered in an envelope marked,
"69 W CAPACITORS" and shall be addressed to: Hutchinson Utilities Commission of the
City of Hutchinson, 225 Michigan Street, Hutchinson, Minnesota 55350.
All proposals shall be submitted in duplicate on the Bidder's own letterhead in
facsimile of the Proposal Form enclosed in the Specifications, or by utilizing the Proposal
Form enclosed with the Specifications by typing the official name of the Bidder at the top
of the form.
Each proposal shall be accompanied by a Bid Bond, made payable to the
Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota, in the
amount of five per cent (5 %) of the Bid, as a guarantee that the Bidder will enter into the
proposed Contract after his Bid shall have been accepted.
No Bidder may withdraw his Bid or Proposal for a Period of thirty (30) days after date
of opening of Bids.
At the aforementioned time and place, or at such later time and Place as the Owner
then may fix, the Owner will act upon Proposals received and with its sole discretion may
award Contract(s) for the furnishing of said equipment.
The work shall be started within ten (10) days after award of Contract(s).
Specifications and Plans are available at the Office of the Hutchinson Utilities,
225 Michigan Street, Hutchinson, Minnesota 55350.
The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson,
Minnesota reserves the right to reject any and all bids.
n
Doug Wji rd, President
Date
ATTESTED
ray 1aA J==::�
Mike Carls, Secretary
Date %,27 q 7
0
ADVERTISEMENT FOR BIDS
FOR
PLANT 1 TRANSFORMER REPAIR
HUTCHINSON UTILITIES COMMISSION
HUTCHINSON, MINNESOTA
Notice is hereby given that the Hutchinson Utilities Commission of the City of
Hutchinson, Hutchinson, Minnesota, hereinafter referred to as the Owner, will receive
sealed Bids at the Hutchinson Utilities office until 11:00 a.m. on the 20' day of
January, 1998, and will publicly open and read aloud such Bids on the following work and
equipment:
"PLANT 1 TRANSFORMER REPAIR"
Proposals shall be property endorsed and delivered in an envelope marked,
"PLANT 1 TRANSFORMER REPAIR" and shall be addressed to: Hutchinson Utilities
Commission of the City of Hutchinson, 225 Michigan Street, Hutchinson, Minnesota 55350.
All proposals shall be submitted in duplicate on the Bidder's own letterhead in
facsimile of the Proposal Form enclosed in the Specifications, or by utilizing the Proposal
Form enclosed with the Specifications by typing the official name of the Bidder at the top
of the form.
Each proposal shall be accompanied by a Bid Bond, made payable to the
Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota, in the
amount of five per cent (5 %) of the Bid, as a guarantee that the Bidder will enter into the
proposed Contract after his Bid shall have been accepted.
No Bidder may withdraw his Bid or Proposal for a Period of thirty (30) days after date
of opening of Bids.
At the aforementioned time and place, or at such later time and Place as the Owner
then may fix, the Owner will act upon Proposals received and with its sole discretion may
award Contract(s) for the furnishing of said equipment.
The work shall be started within ten (10) days after award of Contract(s).
Specifications and Plans are available at the Office of the Hutchinson Utilities,
225 Michigan Street, Hutchinson, Minnesota 55350.
The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson,
Minnesota reserves the right to reject any and all bids.
By LW4 k�J�J
Doug 7", President
Date /'�- e? 9 9 7
ATTESTED
By /'? J4�'
Mike Carls, Secretary
Date / (i- q
1