11-08-1976 HUCMRegular Meeting
November 8, 1976
All Commissioners were present; also Mgr. Alexander, Ruth Hakel,
and Counsel Peterson.
The meeting was called to order by President Quade at 2 P.M.
The minutes of the Regular Meeting of October 12, 1976, were
read and approved as read.
The minutes of the Special Meeting of October 18, 1976, were
read and approved as read.
The motion was made by Commissioner Filk, seconded by Commissioner
Tracy, and carried, to allow the following bills:
Briggs- Morgan Legal Opinion $3,000.00
Carleton Beh Co. Fiscal Agency Services 12,500.00
Associated Consultants, Inc.
Engineering Services 12,345.07
Curtiss- Wright Corp. Estimate #2 666,900.00
Pittsburgh -Des Moines Estimate #4 7,200.00
A & B Electric Final Payment 1,789.15
Paul Lemke Estimate #6 12,952.80
Harold Scholz & Co. Estimate #1 32,400.00
Minn. Municipal Utili-
ties Association 1976 Special Assessment 450.00
Counsel Peterson presented a Retainer Agreement which included
a $2,400.00 annual charge for regular services. (Exceptions are
also included in the Agreement.) The motion was made by Commissioner
Filk, seconded by Commissioner Tracy, and carried, to accept the
Agreement as presented. Also approved was the amount of $2,334.00
for services rendered for the Bond Issue.
November 8, 1976
Hutchinson Utilities Commission
Hutchinson, MN 55350
Re: Retainer Agreement
Gentlemen:
Our office proposes to continue our attorney - client relationship
with the Commission on a retainer basis with the following terms.
Effective November 1, 1976, we will represent the Commission on a
regular retainer in the amount of $2400.00 annually. The months
of September and October will be paid at the previous rate of
$1500.00 annually or $125.00 per month. The new retainer would
be paid at periods preferable to the Commission.
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Resolution drawn up by MMUA adopting a transmission line and electric generation
facility policy.
(No physical resolution or policy attached to these minutes.)
Included in the regular retainer services would be all legal
work with only certain exceptions. The exceptions shall include
any litigation, bond issues, or other work which involves
extensive protracted time on our part. Any exceptions to the
retainer would be upon prior notice and agreement with the
Commission and would be billed to the Commission at our standard
prevailing hourly rate or by agreement.
It is understood that our present arrangement with respect to
the Worthington litigation shall continue.
Our office will maintain time records separating retainer work
from any exceptional work. Time records on the retainer will
be reviewed at least annually to determine if the time spent is
fair considering the retainer fee. We will make any adjustments
necessary on the retainer to fairly provide the services to the
Commission.
It is further understood that attorney- client relationship is
terminable by either party at any time.
Very truly yours,
PETERSON & GrILMER
By Richard A. Peterson
RAP /jes
President Quade presented a proposed resolution drawn up by the
Minnesota Municipal Utilities Association concerning adopting a
Transmission Line and Electric Generation Facility Policy. The motion
was made by Commissioner Tracy, seconded by Commissioner Filk,
and carried, to adopt the resolution as recommended.
Mgr. Alexander presented a new Circle -Hutch proposal which has been
presented to Circle Pines management for their ratification.
Mgr. Alexander presented an agreement establishing the Western
Minnesota Municipal Power Agency. Mgr. Alexander was instructed
to attend the next regular meeting of the organization to properly
evaluate the offering.
President Quade stated the fact that due to Bev Popp's illness
Ruth Hakel has been doing her work which requires much overtime.
After discussion it was the opinion of the Commission that Ruth
Hakel should have compensation for her overtime in the amount of
Bev Popp's salary until her return or replacement.
The following bills were allowed:
MUNICIPAL ELECTRIC PLANT
Natural Gas Division $ 10,000.00 -
Municipal Electric Plant - Petty Cash 299.90
Oppenheimer, Wolff, Foster, Shepard 4,981.23
Mrs. Fred Briggs 20.001\
Floor Care Supply Co. 42.35
M46
Ink Spots Inc.
130.00
Municipal Electric Plant - Petty Cash
138.23
Continental Safety Equipment
48.99
Williams Steel & Hardware
86.53
The Satterlee Company
15.10
Kemske Paper Co.
15.40
Northern States Supply Co.
85.99
Anderson, Lieser, & Thorsen
1,590.00
Earl Schlafge
45.89
The Hutchinson Leader
67.11
Allen Office Products Inc.
151.63
Dr. M. J. Juffer
10.00
World Travel
340.00
Power Supply Company
264.90
Minnesota Valve & Fitting Co.
151.03
Simonson Lumver
107.15
Minnesota Electric Supply Co.
2,900.00
Maki
14.00
United Electric Corp.
85.00
Nations Business
39.75
Plowman's Inc.
42.70
Washington Iron Works Inc.
5,363.38
David F. Ruzicka
25.00
Marty's Roofing Co.
783.00
Zep Mfg. Co.
50.00
Zins Machining
181.50
Texgas Corp.
2.70
Myron Wigen Chevrolet Co.
9.50
Phillips Petroleum Co.
205.30
Pheoll Mfg. Co.
16.81
D. A. Schultz Co.
21.61
S. A. Nies
12.20
Wahl & Wahl
243.80
Totushek Trucking
38.00
Ed Rettman
438.75
Carr Flowers
5.50
Fresco
438.74
Hutchinson Utilities
435.10
Champion Auto Store
2.79
John Henry Foster Co.
49.15
Gustafson oil Company
24,485.36
Case Power and Equipment
502.96
Texaco Inc.
1,576.00
Texaco Inc.
5,746.25
Standard Oil Company
1,710.15
Blue Cross & Blue Shield
2,637.36
Charlie Lemke
10.00
Erickson Oil Products
526.22
Hutchinson Utilities
630.78
Gary Williams
14.82
City of Hutchinson
177.38
LJ
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Hutchinson Utilities
64,961.86
Barb Otto
1.37
Wayne Smith
19.14
Rodney Markgraf
20.82
Audrey Fussy
10.43
Kock's
88.40
Hydra Power
175.32
Citizens Bank & Trust
3.50
Worhtington Service Corp.
531.62
Cooper Energy Services
2,432.92
Williams Steel & Hardware
35.99
Hutchinson Farm Service
55.00
Dostal & Oleson Oil Co.
90.00
Municipal Electric Plant, Glencoe, MN
79.74
Hut chinson Wholesale Supply
90.82
G.T.C. Auto Parts
64.84
Wally's Tire Shop
458.00
Hutchinson Oil Co.
5.00
Farm & Home Distr. Co.
11.24
Anderson Interiors
4.58
Franzen's Hardware
28.88
Larson Communications
60.05
Moody Investors Service Inc.
1,500.00
Jeff Beach
21.30
Charleen Broberg Iverson
21.40
Michael Brygger
10.30
Frank C. Hayde
42.40
Dennis Heley
12.68
Pauline Henke
21.20
Aaron Hexum
21.20
Patricia Kauffmann
21.10
Gary Koering
40.20
Harold Lanning
20.20
Darwin Mathews
21.40
William H. Mitchell
20.20
Roland Nelson
40.40
Ralph Peterson
21.30.
Jeraldine Rohrbach
40.40
Roger Siemsen
20.10
Jean Vandrasek
21.20
Vietnamese Refugee Fund
20.30
Vietnamese Refugee Fund
20.20
Vietnamese Refugee Fund
40.40
Tom White
42.70
Lillian Winterfeldt
42.40
Sharon Wreed
42.80
LaSalle Cleaners
58.85
American'Linen Supply Co.
34.12
Westinghouse Electric Supply Co.
376.45
Sterling Electric Company
208.38
Patchin Fertilizer Services
38.50
QL
McMaster -Carr Supply Co.
170.05
Graybar Electric Co. Inc.
163.59
Crane Supply Co.
14.75
Calgon Corp.
1,068.00
Burmeister Electric Co.
859.99
Jahnke Red Owl
116.13
Plaza OK Hardware
96.32
IBM Corp.
370.06
Controlforms
55.60
Leef Bros. Inc.
120.77
American Public Power Assn.
215.00
Hutchinson Telephone Co.
627.85
F4mily Rexall Drug
17.88
Natural Gas Division
35,804.19
of " "
35,804.20
ff ►t ►,
35,8o4.20
Clinton Tracy
189.95
Airborne Freight Corp.
56.58
Donald M. Schimp
155.27
Pittsburgh -Des Moines Steel
58,482.00
Associated Consultants, Inc.
20,208.51
Associated Consultants, Inc.
36,153.81
Paul Lemke & Son
10,814.84
Curtiss - Wright Corp.
67,500.00
Pittsburgh -Des Moines Steel
38,988.00
H. P. Quade
88.95
Minn. -Wis. Truck Lines
63.75
Westinghouse Electric Corp.
3,186.50
United Electric Corp.
2,001.88
4 Seasons Services
23.95
Calgon Corp.
125.41
NASSU
8.50
Union Oil Co. of CA
18.16
Duluth Filter Co.
394.50
United Electric Co.
819.00
Twin City Testing
45.00
Remmele Engineering Inc.
3,296.00
Northern S ates Supply Inc.
4.88
Postmaster's
30.00
Home Bakery
203.20
United Power Assn.
50,997.22
IBM Corp.
2,918.00
Myron Wigen Chevrolet Co.
97.85
United Electric Corp.
402.00
Paul Lemke & Son
128.80
Peterson & Gilmer
12$.30
The Bond Buyer
388.50
Natural Gas Division
14,500.00
McLeod Coop. Power Assn.
8.98
R. H. Alexander
6.99
R. H. Alexander
150.00
Phillips Petroleum Co.
15.53
M
November 8, 1976
Hutchinson Utilities Commission
225 Michigan Street
Hutchinson, MN 55350
Re: Gas Rates to Electric Division
Gentlemen:
On September 23, 1976, the Commission agreed that the Gas
Division raise the charge for natural gas to the Electric
Division from S.01 to $.06 per MCF, subject to an approving
legal opinion.
It is my opinion that the increase is legally proper.
The Hutchinson City Charter establishing the Commission, and
setting the rules by which they are to operate, makes no
provision with respect to standards for determining the rates
charged for gas or electricity. The only impediment to rates
established by the Commission is the right of the Hutchinson
City Council to veto the rate increase within an appropriate
period of time following notice to them.
A fuel adjustment provision in the rate structure for both
gas, and electric customers has been established by the Utilities
Commission and has been processed through the City Council.
The fuel adjustment provision to electric customers provides
for adjustments "based upon the combined costs of fuel burned
in the Hutchinson electrical generating stations and purchased
power from outside suppliers." There is no reference with
respect to "fuel burned" as to whether the fuel is purchased
from a third party or purchased from the Gas Division of the
Hutchinson Utilities Commission.
Separate funds and accounting are set up for the Gas Division
and the Electric Division. Consequently, any gas supplied to
the Electric Division comes from the Gas Division, and separ-
ate accounting is maintained.
The. rate for gas charged by the Gas Division to the Electric
Division would not appear to have any legal significance with
respect to the City Charter provisions, since there is no
standard by which the Commission is to establish rates to be
charged to the ultimate consumers.
Consequently, it is my opinion that it is legally proper for
the Gas Division to raise the charge for natural gas to the
Electric Division from S.01 to $.06 per MCF.
Very truly yours,
PETERSON & GILMER
By Richard A. Peterson
RAP /jes
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Junker S«nitation Service
14.00
Western Union Telegram Co.
34.31
Big Bear, Inc.
20.88
Coast to Coast Stores
5.79
Burlington Northern
90.00
Orville Kuiken
83.11
Washington Iron Works Inc.
3,500.34
Linda Norell
8.88
Earl Schlafge
20.25
American Welding Supplies Inc.
83.56
Randy Hanson
6.37
Texaco Inc.
832.00
Hutchinson Utilities
250.80
Minn. -Wis. Truck Lines
14.00
NATURAL GAS DIVISION
120,070.37
R. E. Young
165.00
Citizens Bank & Trust
537.00
Aetna Variable Life Ins.
20.00
First National Bank
4,139.60
Hutchinson Utilities
156.47
Aladdin Industries
17.68
American Meter Division
89.58
Mueller Co.
150.34
Fisher Controls Co.
228.74
Anderson, Lieser, & Thorsen
895.00
Lorraine Lindeman, McLeod Co. Treas.
1,196.92
Orville Kuiken
13.00
IBEW Local 949
16.75
Leeds & Northrup
900.99
Circle -Hutch Utility Board
120,070.37
McLeod Coop. Power Assn.
17.32
Citizens Bank & Trust Co.
335.80
Minn. -Wis. Truck Lines
15.66
The meeting adjourned at 4:30 P.M.
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Regular Meeting
December 17, 1976
All Commissioners were present; also Mgr. Alexander, Ruth Hakel,
and Dennis McGill.
The meeting was called to order at 1:30 P.M. by President Quade.
The Minutes of the Regular Meeting of November 8, 1976, were read
and approved as read.
Dennis McGill of Anderson, Lieser, and Thorsen, at the request of
Mgr. Alexander, explained the financial condition of the Hutchinson
Utilities. He reported the need to borrow.
After discussion on the General Electric Turbine breakdown and the
costs incurred, a motion was made by Commissioner Tracy, seconded
by Commissioner Filk, and carried, to pay the General Electric Co.
$368,563.62 for services and repairs to date. Mgr. Alexander was
instructed to set -up a suitable payment schedule with General
Electric.
Mgr. Alexander reported on the Curtiss - Wright project in respect
to the amount paid and the amount owed. After.dis.ucssion a motion
was made by Commissioner Filk, seconded by Commissioner Tracy,
and carried, to pay the following bills:
Associated Consultants $15,179.66
H.K. Scholz Company Est. #2 & 3 116,370.00
Curtiss - Wright Corp. Est. #3 & 4 1,471,497.30.
Paul Lemke Est. #7 3,600.-00
Mgr. Alexander reported costs to repair #2 Generator. General
Electric Company had a low bid of $23,778.00. No action was taken.
Mgr. Alexander reported on Liability Insurance forPublic Officials
and Employees in that we have been covered under a policy held
jointly with the City of Hutchinson. It was reported that the City
had dropped the coverage in April of 1976. Mgr. Alexander was in-
structed to investigate the matter further.
Mgr. Alexander reported that he is doing research on Group Insurance.
Mgr. Alexander presented a request from Hutchinson Growth Inc. to
purchase a 33' x 530' portion of land on our South line for the sum
of $300.00. On a motion by Commissioner Filk, seconded by Commis-
sioner Tracy, and carried, we agreed to purchase the said piece of
property for $300.00 if indeed it is offered to us by Hutchinson
Growth.
After discussion on pole purchase from U.P.A. a motion was made by
Cormissioner Tracy, seconded by Commissioner Filk, and carried, to
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make the purchase as proposed provided easements can be readily
transferred or acquired.
The motion was made by Commissioner Filk, seconded by Com-
missioner Tracy, and carried, to purchase a 1968 Van
(Ser. No. 6S158P124078) from Wm. James Auto Inc. This
unit would be purchased for $800.00; it is the unit originally
traded to Wm. James Auto Inc. on a new truck bid.
The following bids were allowed:
MUNICIPAL ELECTRIC PLANT
First National Bank
$10,000.00
Home Bakery
184.00
Mrs. Fred Briggs
20.00
Natural Gas Division
29,787.03
Natural Gas Division
29,787.03
Natural Gas Division (void)
Rufus Alexander
199.65
American Welding Supplies
67.82
Blue Cross & Blue Shield
3,384.76
Farm & Home Distributing
36.11
Central Contractors Supply
1,095.00
Brown Boveri Corp.
500.32
AMP Special Industries
17.03
Hutchinson Cleaners
26.50
The Hutchinson Leader
24.00
Allen Office Products
319.00
Carr Flowers
57.10
Gibson
33.52
Cooper Energy Services
585.57
Continental Safety Equipment
64.68
Electric Power Door
38.92
Jordan B alve Company
280.00
Hutchinson Farm Service
55.00
N.A.S.S.U.
8.50
Treinen Bushel, Inc.
32.00
Lamberts Standard Service
6.50
Manzel
3.41
Floor Care Supply Co.
54.56
Kemske Paper Co.
35.85
Louise Anderson
42.60
Appliance Service Shop
15.10
Brad Bonniwell
22.58
Bernard Farley
21.20
Susan Fors
42.60
Betty Frassel
21.20
John Grundmeyer Estate
20.90
Ronald Kern
42.40
Dennis McCoy
21.20
75
Ron Rusch
Barbara Saari
Agnes Sitz
Richard Soenen
Bruce Vogt
Brian Wendlandt
Michael Frericks
Karen Kletscher
Roger Meier
LaSalle Cleaners
McCormick Impl. Co.
Kemske Paper Co.
Standard Printing Co.
Am. Linen Supply Co.
Northern States Supply
McMaster -Carr Supply
First National Bank of Mpls.
Fidelity Bank & Trust Co.
Lee Career Apparel
Franzen's Hardware
Hutchinson Oil Company
Central McGowan
Jahnke's Red Owl
Brinkman Studios
Case Power & Equipment
Hutchinson Telephone Co.
R. E. Young
Hutchinson Utilities
Sbrenson Farm Supply
G. F. Nemitz Sons
Rockite Silo Inc.
Family Rexall
Simonson Lumber
Rutz Plumbing & Heating
G.T.G. Auto Parts
Twin City Testing & Engr.
Plowman's Inc.
Burmeister Electric
Radar Engineers
Calgon Corporation
General Electric Corp.
United Electric Co.
McMaster -Carr Supply
Graybar.Electric Co.
Sterling Electric Co.
WESCO
Satterlee Co.
Williams Steel & Hardware Co.
Power Supply Co.
Minn. Municipal Utilities
(void)
) .
42.40
21.20
21.20
11.40
21.70
21.20
23.19
5.75
13.44
41.92
10.66
15.20
64.05
33.17
75.54
115.43
262,103.'85
36,360.66
444.70
4.98
3.50
76.99
111.00
4.40
347.75
764.28
30.00
448.12
12.50
6.00
139/28
47.41
14.47
37.50
5,4.00 -
176.90
596.65
16.OQ
17.80
1,176.00
290.70
44.94
235.65
198.17
830.66
64.73
181.08
450.00
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Washington Iron Works
Paul Lemke & Son
A & B Electric
Pittsburgh -Des Moines Steel Co.
Curtiss- Wright Corp.
Associated Consultants Inc.
Carleton D. Beh Co.
Briggs & Morgan
Gustafson Oil Co.
Standard Oil Co.
State Treasurer, Soc. Sec.
Hutchinson Utilities
Hutchinson Utilities
Oakite Products
Northwestern National Bank
First National Bank
Kenwood Designs
Gustafson Oil Co.
Hutch Iron & Metal Co.
Junker Sanitation Services
4 SEasons Services Inc.
Harold K. Scholz Co.
Hutchinson Utilities
Hutchinson Area United Fund
Hutchinson Wholesale Supply
Plaza OK Hardware
United Media Services Inc.
Hutchinson Telephone Co.
Larson Communications
AMOCO Oil Co.
Goodin Company
The Satterlee Co.
of MPLS
Leef Bros.
McLeod Coop Power Assn.
IBM
Peterson & Gilmer
United Power Assn.
Standard Oil Co.
HAVTI - Farm Mechanics
Hutchinson Utilities Commission
gilbert Boldt
Franklin A. Boller
Roger Neiland
McLeod Coop. Power Assn.
City of Hutchinson
Commissioner of Personnel
Central District Services
Texgas Corp.
Hutchinson Utilities
Natural Gas Division
Federal Communications
314.32
12,952.80
1,789.15
7,200.00
666,900.00
12,345.07
12,500.00
3,000.00
27,759.15
35,151.83
4,596.26
641.49
13,052.08
141.90
53,091.25
19,787.03
21.26
35,224.69
20.35
14.00
23.95
32,400.00
256.41
48.00
340.14
83.70
69.95
14.00
406.20
477.75
12.79
33.40
93.11
17.60
2,948.00
2,344.00
99,871.32
4,257.00
19.53
9.92
50.00
22.40
11.66
8.93
., :18,. 06
117,42. .
46.64
3.88
287.24
24,000.00
4.00
Lgxoj
Christopher Trucking 45.60
Standard Oil Co. 49,790.89
Monica Salonek 5.99
Natural Gas Division
Fist National Bank
4,139.60
Citizens Bank & Trust Co.
321.82
Energy Economics, Inc.
.217.45
American Meter Division
732.90
Crane Supply Co.
872.94
Hutchinson Utilities
159.45
Natural Gas Division
2.00
Krasen, Inc.
2.40
Crane Supply Co.
855.04
Sid Harvey's
23.29
Mueller Co.
183.70
Citizens Bank & Trust Co.
44,016.88
Natural Gas Division
37.90
Citizens Bank & Trust Co.
315.10
McLeod Coop Power Assn.
5.00
McLeod Coop Power Assn.
12.25
American Meter Division
31.19
Circle -Hutch Utility Board
97,401.86
Citizens Bank & Trust Co.
327.60
Hutchinson Utilities Commission
12,000.00
There being no further business, the:::meeting adjourned at 4 P.M.
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