02-23-1997 HUCM13
Regular Meeting
February 23, 1998
Commissioners Ward, Carts and Ackland were present. Absent was Commissioner
Wetteding. Also present were Manager Kadrmas and Counsel G. Barry Anderson.
President Ward called the meeting to order at 4:00 p.m.
Manager Kadrmas expressed his sorrow in the death of employee Walter D
Hombach, Power Production Superintendent, whose funeral was today at 10:00 a.m.
The position, left vacant by Walter's death, has been offered to Donald Merkins,
Electric Distribution Crew Chief, pending Commission approval.
The minutes of January 26, 1998 regular meeting were reviewed. A motion was
made by Commissioner Carls, seconded by Commissioner Ackland to approve the
minutes as written. Motion was unanimously carried.
The January payables were discussed. The annual dues for Minnesota Municipal
Utilities Association and Mid - Continent Area Power Pool were explained.
Commissioner Wetterling's appointment to the Commission Board is exempt from
a conflict of interest and is not a legal issue. A motion was made by Commissioner
Ackland, seconded by Commissioner Carls to accept the payables in the amount of
$1,093,335.02 (detailed listing in payables book). Motion was unanimously carried.
The 1998 year -to -date (January) financial and budget reports were discussed. The
effects of El -Nino has caused the sale of our natural gas to go down, adjustments
may be made accordingly. A motion was made by Commissioner Carts, seconded
by Commissioner Ackland to accept the financial and budget reports. Motion was
unanimously carried.
Votes were taken.
Aye - Commissioners Ward, Gilmer, Carls and Ackland
Nay - None
Manager Kadrmas and Daniel Geiger, Operations Supervisor, explained the
problems that caused the outage of February 1, 1998, causing Minnesota Mining &
Manufacturing a loss of $1.2 million in just the coating department. The outage may
have been prevented. In the future, communication will be better for all parties
involved, and the risk factors will be explained in depth to the people affected by any
risk and to the people involved working on the project.
Manager Kadrmas presented requisition #10530 (see attached) for directional boring
Highway 7 for 69 kV underground. After discussion, a motion was made by
Commissioner Carts, seconded by Commissioner Ackland to approve the requisition
to Northern Pipeline Construction, Lakeville, Minnesota, in the amount of $12,000.
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Motion was unanimously carried.
Votes were taken.
Aye - Commissioners Ward, Gilmer, Carls and Ackland
Nay - None
Manager Kadrmas presented recommendation for Phase 2 Construction 190 PSIG Feeder
Line (bid tabulation attached). After discussion, a motion was made by Commissioner
Gilmer, seconded by Commissioner Ackland to award the bid to Northern Pipeline
Construction, Lakeville, Minnesota, in the amount of $175,428. Motion was unanimously
carried.
Votes were taken.
Aye - Commissioners Ward, Gilmer, Carls and Ackland
Nay - None
Manager Kadrmas presented recommendation to reject all bids for 1998 Trencher Unit With
Attachments And Trailer (bid tabulation attached). Mgr. Kadrmas was not involved in putting
the specifications together. The specifications were written in such a way that a legal issue
could develop. Counsel Anderson agreed that the bids should be rejected. A motion was
made by Commissioner Carts, seconded by Commissioner Ackland to reject all bids and
rebid at a later time with better specifications. Motion was unanimously carried.
Votes were taken.
Aye - Commissioners Ward, Gilmer, Carls and Ackland
Nay - None
Manager Kadrmas presented a request for bids for Re- Roofing Power Plant #1 (see
attached). Our engineers, Associated Consultant Engineers, Inc, Plymouth, Minnesota, will
handle the bidding process. After discussion, a motion was made by Commissioner Gilmer,
seconded by Commissioner Ackland to advertise for bids. Motion was unanimously carried.
Votes were taken.
Aye - Commissioners Ward, Gilmer, Carls and Ackland
Nay - None
Manager Kadrmas reported on the Energy Conservation for 1997 and also the Energy
Conservation plan for 1998. City Center sent us a request for a grant of $25,000 for the
installation of an energy management system at the HATS facility. Manager Kadrmas and
Counsel Anderson said the original request was for the amount of $20,000 so if more is
needed that request should be on the agenda for the March meeting. A motion was made
by Commissioner Gilmer, seconded by Commissioner Carts to continue with the grant
program for residential customers.
Votes were taken.
Aye - Commissioners Ward, Gilmer, Carls and Ackland
Nay - None
Manager Kadrmas presented a list of uncoilectible accounts. After discussion, a motion was
made by Commissioner Carts, seconded by Commissioner Gilmer to authorize management
to charge off $4,301.37 (detailed listing on page 1,995 of February general journal). Motion
was unanimously carried.
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Votes were taken.
Aye - Commissioners Ward, Gilmer, Carls and Ackland
Nay - None
General Manager's Report
A. The employees required to wear the fire retardant clothing dislike the
NoMax Dupont product. They've tried out the Endura product and like
it much better, and want to switch; however, the Endura product will
only last about a year. (The NoMax product lasted about two years -
the Endura product is about half the price.) The employees will switch
to the Endura product but, request for authorization to change policy
at the manager's discretion, on the length of time before replacing fire
retardant clothing. A motion was made by Commissioner Carls,
seconded by Commissioner Ackland granting Mgr. Kadrmas discretion
on the length of time before replacing fire retardant clothing.
Votes were taken.
Aye - Commissioners Ward, Gilmer, Carls and Ackland
Nay - None
B. The American Public Power Association National Conference is
scheduled for June 15 - 17, 1998 in San Antonio, Texas. Mgr.
Kadrmas will be attending. If anyone else wants to attend, let
management know.
C. As mentioned earlier, the position of Power Production Superintendent
has been offered to and accepted by Donald Merkins. A motion was
made by Commissioner Ackland, seconded by Commissioner Gilmer
to accept Manager Kadrmas' recommendation to appoint Donald
Merkins as the new Power Production Superintendent effective March
2, 1998. Motion was unanimously carried.
Votes were taken.
Aye - Commissioners Ward, Gilmer, Carls and Ackland
Nay - None
D. Discussed the Highway 22 bridge on the Luce Line Trail. Will keep the
Commission informed.
Old Business: None
New Business: None
There being no further business, a motion was made by Commissioner Ackland, seconded
by Commissioner Gilmer to adjourn the meeting at 6:00 p.m. Motion was unanimously
carried.
Votes were taken.
Aye - Commissioners Ward, Gilmer, Carls and Ackland
Nay - None
ATTEST:
Ward, President
Mike Cads, Secretary
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ADVERTISEMENT FOR BIDS
FOR
RE- ROOFING POWER PLANT #1
FOR THE
HUTCHINSON UTILITIES COMMISSION
HUTCHINSON, MINNESOTA
PROJECT NO. 96170
1998
Notice is hereby given that the Hutchinson Utilities Commission of the City of Hutchinson,
Minnesota, hereinafter referred to as the Owner, will receive sealed Bids at the Owner's,
office, 225 Michigan Street Southeast in Hutchinson, Minnesota, until 10:00 a.m. on the
19' day of March, 1998, and will publicly open and read aloud such Bids on the following
improvement(s).
"APPROXIMATELY 6,500 SF ROOFING REMOVAL
AND RE- ROOFING WITH AN EPDM SYSTEM "
Proposals shall be properly endorsed and delivered in an envelope marked, "BIDS FOR
RE- ROOFING POWER PLANT #1 FOR THE HUTCHINSON UTILITIES COMMISSION,
HUTCHINSON, MINNESOTA, PROJECT NO. 96170,1998 " and shall be addressed to the
Owner at the address shown on the Proposal.
Proposals shall be submitted in triplicate 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.
Proposals shall be accompanied by a bid bond, cashier's check, or a certified check made
payable to the Owner 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 /maintenance
bond and a payment bond after their Bid shall have been accepted.
No Bidder may withdraw their 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 within its sole discretion may
award Contract(s) for the furnishing /construction of said improvement(s).
Payment for said improvements will be made in cash derived from available cash on hand
from revenue and such other sources as may be available to the municipal electric utility.
The city shall not incur any general obligation for said improvements. The Contract for the
furnishing of said improvements shall not constitute a general obligation of said city nor be
payable in any manner by taxation.
The successful Bidder will be required to furnish Bonds in an amount equal to 100% of the
Contract price, said bonds to be issued by a responsible surety approved by the Owner,
and shall guarantee the faithful performance of the Contract and the terms and conditions
therein contained, and save harmless the Owner from claims and damages as of any kind
caused by the operation of the Contractor and shall also guarantee the maintenance of the
improvement for a period of one year from and after final acceptance by the Owner.
The work shall be started and completed within the time stated in the
Specifications/Contractor's Proposal.
Specifications and Plans are on file at the Office of the Owner and Associated Consultants
Engineers, Inc., 3131 Fernbrook Lane North, Minneapolis, Minnesota 55447, upon
payment of Twenty Dollars ($20) per set (non - refundable) to defray handling costs.
The Owner reserves the right to reject any or all Proposals and to waive informalities.
Published upon order of the Owner.
By
Roger Gilmer, Vice President
Date A - ;? 3 - .16
ATTESTED
By �
Mike Carls, Secretary
Date /0-a A
�'
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