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06-30-1980 HUCMRegular Meeting June 30, 1980 All Commissioners were present, also present were Mgr. Alexander and Ruth Hakel. The meeting was called to order at 2:00 p.m. by President Quade. The minutes of the Regular Meeting of May 27, 1980 were presented. On a motion by Commissioner Filk, seconded by Commissioner Tracy the minutes were accepted as presented in their printed form. The motion carried. The minutes; of the Special Meeting of June 12, 1980 were presented. On a motion by Commissioner Filk, seconded by Commissioner Tracy the minutes were accepted as presented in their printed form. The motion carried. Mgr. Alexander reported on the following items: Presented and read a letter from Associated Consultants concerning a 3M co- generation unit. (Letter attached) After considerable discussion the Commission took the following position on the six questions posed: 1. 2. 3. 4. 5. 6. Yes Not able to answer until time of need Yes No Yes No Mgr. Alexander was instructed to convey the message to Associated Consultants who in turn would advise 3M Company. Reported that Don Swanson of Associated Consultants attended a WAPA meeting in Fargo on June 26, 1980. The general feeling seems to be no change in area now being served by WAPA. Reported nothing new in the litigation with Curtiss - Wright. Discussed having talked to Ted Odenwald of Willmar who indicated that his Commission would be calling a meeting with Hutch Utilities in the near future. Asked for aid from Associated Consultants concerning rebuilding a generator. Some quotes were in - waiting for one more. On a motion by Commissioner Filk, seconded by Commissioner Tracy Mgr. Alexander was instructed to proceed with the generator repair as soon as all quotes were in and had been evaluated by Associated Consultants. The motion carried. 1 Presented a letter from Douglas Thompson, a lawyer from St. Paul, Minnesota, in behalf of LeRoy and Esther Christensen and Willis and Audrey Miller regarding rate schedules for electric services. The Commission advised Mgr. Alexander to have our Counsel answer the letter. Distributed a brochure from Fern Engineering concerning modifying unit #9 to use gas as a fuel in addition to oil. The Commission was asked to study the proposal. Reported on an outage at Hutch Industrial due to underground problems. Action is being taken to correct the problem. Commissioner Filk asked if a check could or should be made of the existing overhead distribution within the City. Mgr. Alexander that this was part of the long range plan and would be completed in the next year or two. After discussion concerning sending other than the manager or Commissioners to conventions, Commissioner Filk suggested they should attend workshop instead. On a motion by Commissioner Filk, seconded by Commissioner Tracy to authorize Orville Kuiken to attend the American Public Gas Association convention in Boston, Massachusetts, August 17 thru August 20, 1980. The motion carried. The following bills were allowed: MUNICIPAL ELECTRIC PLANT Madden's Inn 9065 750.00 Apollo Piping Supply, Inc. 9066 1,198.79 Linda Squier 9067 14.32 Citizens Bank & Trust Company 9068 4,176.02 State Treasurer 9069 3,302.15 Great Plains Supply Company 9070 4.09 Central Petroleum Company 9071 81.82 Plaza OK Hardware 9072 113.41 James Stuhr 9073 12.96 Tom Pramann 9074 10.88 Ray Praught 9075 6.50 Colleen Shuft 9076 21.20 Dan Perrine 9077 42.40 Bruce Gilman 9078 21.30 Howard Dummer 9079 42.60 Robert Boettcher 9080 42.60 Hutchinson Util. - petty cash 9081 532.95 Computerworld 9082 30.00 Phillips Petroleum Company 9083 17.42 I. B. M. 9084 375.00 Clinton Tracy 9085 413.17 H. P. Quade 9086 120.25 Hutchinson Oil Company 9087 7.50 United Power Association 9088 81.72 Hutchinson Util. - petty cash 9089 298.86 A,,SSOCIATED 1111CONSULTANTS REGISTERED PROFESSIONAL ENGINEERS 3131 FERNBROOK LANE NORTH I MINNEAPOLIS, MINNESOTA 55441 al 1 f 012/55 ®-5511 Mr. Rufus Alexander, Director Hutchinson Utilities Hutchinson, Minnesota 55350 Dear Alex: Inc. RFC 1111 :ILIN 2 %`11 June 19, 1980 RE: 3 -M Co- Generation Unit Dave Schmidt and I met at 3 -M's office with the following 3 -M people: Tom Landsberger, Mech. Engineer Ray Rozycki, Mech. Engineer Jim Curnow, Elec. Engineer Wayne Pitmon, Division Engineer Joe Pribyl, Division Engineer A. LaSala, Elec. Engineer Duane Pechacek, Elec. Engineer They said they were investigating the possibility of installing a 2,600 KW or 4,000 KW combustion turbine electrical generating unit with waste heat recovery equipment. The following questions were in their mind. 1. What is the Hutchinson Utility's position on this. 2. Would firm gas be available and at what price. 3. Would they be charged an electrical demand charge and at what cost. 4. While the electrical capabilities above would match their minimum electrical and heat requirements, would the Utility buy excess electrical energy if a larger co- generation unit was installed. 5. What electrical requirements would be necessary to parallel with City system. 6. If the installation of co- generation equipment by 3 -M proves unfeasible, would the Utility consider installing such a system at or near 3 -M? Would the utility consider joint ownership with 3 -M? Our answers to each of the following were: 1. Without the benefit of Study the City would prefer to install such equipment themselves and sell electricity and heat to 3 -M; how- ever the Commission has an open mind and are ready to investigate the various possibilities. Mr. Rufus Alexander, Director Hutchinson Utilities PAGE 2 ,;tune 19, 1980 Any gas cost quoted would, of course, he adjustable. 3. It would be necessary for the Utility to charge demand charges for electrical back -up probably on 100% annual ratchet. 4. We felt the question of 3 -M selling electricity to the City would be a policy setting action and we would take the question to the Utility. 5. Dave advised it would not be difficult for 3 -M to electrically parallel with the Utility's system, but not without installation cost. 6. We advised the Utility was interested in investigating the feasibility of installing a co- generation unit and selling elec- tricity and heat to 3 -M from the Unit or a combination of each whereby 3 -M might buy and maintain the waste heat boiler and the Utility the electrical generating unit. Following a discussion of the foregoing WE' said we would get back to Mr. Jim Curnow for a future meeting after the Hutchinson Utilities Commission and Staff has had a chance to study and discuss the issue. DES /cak 1 Very truly yours, ASSOCIATED CONSULTANTS, INC. teeth", Donald E. Swanson 2. Firm gas would have to be allocated by Northern Natviral (although co- generation could reduce 3 -M's present gas use) which would involve 100% firm gas to 3 -M as opposed to the Utility's flexibility of using part interruptible. This would result in lower fuel cost if the Utility owned and operated the unit. Any gas cost quoted would, of course, he adjustable. 3. It would be necessary for the Utility to charge demand charges for electrical back -up probably on 100% annual ratchet. 4. We felt the question of 3 -M selling electricity to the City would be a policy setting action and we would take the question to the Utility. 5. Dave advised it would not be difficult for 3 -M to electrically parallel with the Utility's system, but not without installation cost. 6. We advised the Utility was interested in investigating the feasibility of installing a co- generation unit and selling elec- tricity and heat to 3 -M from the Unit or a combination of each whereby 3 -M might buy and maintain the waste heat boiler and the Utility the electrical generating unit. Following a discussion of the foregoing WE' said we would get back to Mr. Jim Curnow for a future meeting after the Hutchinson Utilities Commission and Staff has had a chance to study and discuss the issue. DES /cak 1 Very truly yours, ASSOCIATED CONSULTANTS, INC. teeth", Donald E. Swanson Linda Squier 9090 14.07 Citizens Bank & Trust Company 9091 4,142.40 State Treasurer 9092 3,279.76 Warner's Industrial Supplies 9093 172.09 Culligan Water Conditioning 9094 68.85 United Building Centers 9095 46.08 Pauline Bipes 9096 231.75 Citizens Bank & Trust Company 9098 20,900.00 Citizens Bank & Trust Company 9099 135,000.00 Riebe Sod Company Inc. 9100 236.50 General Trading Company 9101 33.60 G. M. W. Inc. 9102 60.20 Central Petroleum Company 9103 256.82 Rockite Silo Inc. 9104 8.12 Franklin A. Boller 9105 16.80 Sterling Electric Company 9106 158.50 Sterling Electric Company 9107 62.78 Right 0 -Way Air Freight 9108 51.70 Returned Checks 9999 705.41 A & B Electric 4218 5.70 ASTM Standards for Materials 4219 2.32 Air Hydraulic Systems, Inc. 4220 27.41 Albrecht Oil Company 4221 138.03 Allen Office Products, Inc. 4222 75.15 American Air Filter Company, Inc. 4223 59.30 American Linen Supply 4224 51.32 American Welding Supplies Inc. 4225 55.95 Amoco Oil Company 4226 90.06 Anderson Chemical Company 4227 2,406.36 Apollo Piping Supply, Inc. 4228 42.23 Border States Electric Supply Co. 4229 4,933.87 Mrs. Fred Briggs 4230 20.00 Burmeister Electric Company 4231 2,046.30 Business Products Inc. 4232 33.61 Calgon Corporation 4233 6,017.38 Citizens Bank & Trust Company 4234 54,525.00 Citizens Bank & Trust Company 4235 26,284.00 Coast -To -Coast 4236 69.13 Commissioner of Revenue 4237 12,395.06 Commissioner of Revenue 4238 3,535.26 Colonial Life & Accident Ins. 4239 87.00 Cooper Energy Services 4240 293.52 Data Documents, Inc. 4241 86.31 Diesel Service Company 4242 37.20 Duro Test Corporation 4244 507.48 The Ecological Chemical Company 4245 200.36 V. W. Eimicke Associates Inc. 4246 18.63 Elvin Safety Supply Inc. 4247 201.03 Ernest Gage Company 4248 72.89 Fabricare Cleaners of Hutch 4249 177.00 Family Rexall Drug 4250 10.39 Farm & Home Distributing 4251 7.20 H. W. Filk 4252 300.00 Fire Extinguisher Sales -Sery 4253 35.90 Floor Care Supply Company 4254 6.89 John Henry Foster Company 4255 214.49 .SA Four Seasons Services, Inc. 4256 33.40 Fresco 4257 61.30 G. T. C. Auto Parts 4258 72.90 Gamble Store 4259 8.26 General Electric Supply Company 4260 75.48 General Trading Company 4261 418.96 Graybar Electric Company Inc. 4262 402.07 H & C Electric Supply 4263 251.16 Hagar Jewelry 4264 12.90 Hall's Safety Equipment Company 4265 147.67 Hanson Pump Service Company 4266 274.00 Heikes Hardware Hank 4267 2.84 Helwig Carbon Products, Inc. 4268 167.12 Home Bakery 4269 395.88 The Hutchinson Leader 4270 93.24 Hutchinson Telephone Company 4271 877.07 Hutchinson Util. Employees Fund 4272 111.00 Hutchinson Util. - petty cash 4273 354.02 Hutchinson Util. - utility bills 4274 175,440.13 I B E W Local 949 4275 364.46 Ink Spots, Inc. 4276 14.50 - Jahnke's Red Owl 4277 158.05 Jensen Tools & Alloys 4278 24.50 Junker Sanitation Service 4279 65.00 Juul Contracting Company 4280 38.08 Kato Tool & Equipment Company 4281 78.25 Kemske Paper Company 4282 210.00 Kjos Our Own Hardware 4283 20.59 Leef Bros., Inc. 4284 120.28 McLeod County Sanitary Landfill 4285 8.50 McMaster -Carr Supply Company 4286 44.32 Miller, Miller & Mac, Inc. 4287 55.40 Miller Sales Company 4288 38.01 Minnesota Hallowell 4289 366.72 Natural Gas Division 4290 359,514.51 Northern States Supply Inc. 4291 104.13 Northwestern National Bank 4292 102,279.00 Oakite Products, Inc. 4293 98.63 Pamida, Inc. 4294 6.97 Paper Service Company 4295 101.40 Duane Peterson Company 4296 381.64 Richard A. Peterson 4297 305.00 Plowman's Inc. 4298 7.50 Power Process Equipment, Inc. 4299 98.44 Power Supply Company 4300 572.79 Power Systems 4301 400.56 Premier Fastener Company 4302 63.00 Quade's - 4303 64.47 H. P. Quade 4304 300.00 Region 6E Community Action 4305 270.28 Simonson Lumber 4306 120.02 Dr. Channing R. Smith 4307 77.00 Sorenson Farm Supply 4308 131.75 The Standard Register Company 4309 944.77 State of NN - Social Security 4310 5,435.90 Stewart Paint Mfg. Company 4311 494.50 Swanke Motors Inc. 4312 90.50 Tippecanoe Press Inc. 4313 31.05 Clinton Tracy 4314 300.00 Truck Sign Service 4315 229.01 Uniforms Unlimited 4316 30.90 United Power Association 4317 59,868.46 W.D. Enterprises 4318 24.75 Wally's Tire Shop 4319 35.00 Westburne Supply Inc. 4320 462.00 W E S C 0 4321 1,341.06 Wigen Chevrolet Company 4322 5.15 Zep Manufacturing Company 4323 700.10 Bell & Howell Electronics 4324 263.65 Blue Cross & Blue Shield 4326 5,326.48 Burmeister Electric Company 4327 10.47 Ed Davis Business Machines 4328 99.95 Elvin Safety Supply Inc. 4329 9.68 John Fluke Mfg. Company, Inc. 4330 31.47 General Electric Supply Company 4331 9,584.81 Grayb ar Electric Company Inc. 4332 62.14 H & C Electric Supply 4333 719.03 Hanson Pump Service Company 4334 36.00 Hutchinson Wholesale Supplies 4335 229.80 I. B. M. 4336 319.00 J. C. Penney Company 4337 138.75 Paper Service Company 4338 73.97 H. R. Peterson Company 4339 47.49 Power Supply Company 4340 275.24 Right 0 -Way Air Freight 4341 33.50 Marge Schiro 4342 265.00 Sterling Electric Company 4343 1,013.40 T & R Electric Supply Company 4344 570.00 Welders Supply Company 4345 9.24 W E S C 0 4346 957.96 World Travel 4347 508.00 NATURAL GAS DIVISION R. E. Young ' 1 2096 165.00 Apollo piping Supply, Inc. 2098 51,157.65 Citizens Bank & Trust Company 2099 869.18 State Treasurer 2100 638.30 Juncewski Masonry 2101 113525.00 Mueller Company 2102 75.75 The Tapecoat Company 2103 871.20 Plaza OK Hardware 2104 75.17 G. M. W. Inc. 2105 71.81 Circle -Hutch Utility Board 2106 301,114.30 Circle Pines Utility 2107 111.00 Hansen Gravel & Fill 2109 40.00 Krasen Plumbing & Heating 2110 1,387.36 Hutchinson Wholesale Supplies 2111 94.18 Mueller Company 2112 212.41 Wallace & Tiernan 2113 23,173.15 Fisher Controls Company 2114 388.70 World Travel 2115 540.00 Hutchinson Farm Service 2116 14.25 Citizens Bank & Trust Company 2117 927.06 State Treasurer 2118 661.31 Citizens Bank & Trust Company 2119 100,000.00 P & B- Constructors, Inc. 2120 16,211.30 Allen Office Products, Inc. 840 625.00 American Freight System 841 52.22 American Welding Supplies Inc. 842 15.40 Arps Division of Chromalloy 843 404.52 Big Bear, Inc. 844 65.18 City of Hutchinson 845 128.00 Commissioner of Revenue 846 683.64 Colonial Life & Accident Ins. 847 12.00 Farmers Elevator Association 848 4.00 First State Federal Savings 849 500.00 Fisher Controls Company 850 1,855.04 G. T. C. Auto Parts 851 1.56 Gas Supply Inc. 852 33.45 General Trading Company 853 33.60 Hutchinson Iron & Metal 854 7.95 Hutchinson Util. Employees Fund 855 21.00 Hutchinson Util. - petty cash 856 58.63 Hutchinson Util. - utility bills 857 2,695.64 I B E W Local 949 858 66.00 Juul Contracting Company 859 55.12 McLeod Cooperative Power Assn. 860 53.13 Mueller Company 861 824.12 Rockite Silo Inc. 862 5.92 Southside Auto Body 863 570.00 State of NN - Social Security 864 836.86 Wigen Chevrolet Company 865 8.65 There being no further business, the meeting adjourned at 4:00 p.m. ATT Clinton Tracy, Secretary