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05-26-1981 HUCMRegular Meeting May 26, 1981 All Commissioners were present, also present were Mgr. Alexander, Ruth Hakel, Ivan Larson, Wally Hombach and Counsel Peterson. The meeting was called to order at 2:00 p.m. by President Filk. A motion was made by Commissioner Daggett, seconded by Commissioner Tracy to accept the minutes of April 27, 1981 and the payable bills of February and March as presented in their printed form. Motion was carried. A motion was made by Commissioner Tracy, seconded by Commissioner Daggett to accept the minutes of the special meeting of May 5, 1981 as presented in their printed form. Motion was carried. A motion was made by Commissioner Daggett, seconded by Commissioner Tracy to accept the gas and electric divisions payable bills for April as presented. Motion was carried. President Filk opened the meeting with remarks concerning the various reports that staff had prepared. Ruth Hakel presented and explained the electric and gas divisions monthly income statement. She also presented the operating revenue for the electric division for the month of April. Commissioner Daggett suggested that the cost of production be shown on this report. He was assured it would be on future reports. , Mgr. Alexander brought up the subject of a rate increase for the electric division. After discussion, it was the consensus of opinion of the Commission that we were not ready to apply at this time. Mgr. Alexander presented the results of four months operation of the gas and electric divisions as it related to the budget. Considerable time was spent in analyzing each area. It was a general feeling that the budget was being followed except in the cases of adverse happenings. It was suggested that a report on the budget expenditure would be presented every three months. Wally Hombach, plant superintendent, reported on the condition of engine X67, stating that while the unit was down for bearings, it was discovered that cracks were appearing in the cylinder sleeves. He offered that since the engine is obsolete, parts had to be made. Considerable discussion took place concerning the problem. Suggestions were made to consider salvage companies as a source of supply. Commissioner Daggett offered to contact such an outlet and Supt. Hombach was instructed to search for alternate solutions and report to the Commission as soon as possible and no later than the regular meeting in June. A motion was made by Commissioner Daggett, seconded by Commissioner Tracy to pay General Electric $150,000 on account and that Mgr. Alexander formulate a letter outlining the problems we have experienced concerning services and to convey the message that complete settlement will be made when satis faction on the operation of #8 has been reached. Motion was carried. A motion was made by Commissioner Tracy, seconded by Commissioner Daggett to transfer $150,000 from the gas division to the electric division. Motion was carried. Mgr. Alexander reported that Home Insurance Company was seeking a settlement on repairs made on units 4 and 7. President Filk instructed Mgr. Alexander and Counsel Peterson to compose a letter requesting a settlement as of this date. Mgr. Alexander reported that the alarm system was installed and working. Mgr. Alexander reported that Northern Natural Gas has applied for a rate increase to be effective October 27, 1981. Counsel Arnold Berkeley of Washington, D.C. has filed an intervention on behalf of the Hutchinson Utilities. Mgr. Alexander presented a letter from Hutchinson Industrial requesting a meeting with the Commission relative to rate structures. A meeting will be arranged. A motion was made by Commissioner Tracy, seconded by Commissioner Daggett to allow the manager and the Commissioners to attend the Minnesota Municipal Utilities Association meeting at Quadna on June 14 thru June 17, 1981. Motion was carried. Counsel Peterson reported on his meeting with Doherty, Rumble and Butler concerning their representation of the Hutchinson Utilities in litigation against Home Insurance Company for repairs on units 4 & 7. The Hutchinson Utilities Commission contend that they had no authorization to represent us. They plan to bill the Utilities Mgr. Alexander reported that a delegation from General Electric Company had been to see him this day, May 26, 1981. They were here seeking settlement for parts and services used in the repair of unit #8. Mgr. Alexander cited his dissatisfaction concerning the services performed by General Electric technicians. Supt. Hombach explained that there was still an existing problem of low oil pressure. He further stated that our local mechanics had found the apparent problem and would make repairs. Considerable discussion then took place on how the Home Insurance Company would finalize a settlement on unit #8 since the damage was caused accidentally. Mgr. Alexander recommended that General Electric be paid $150,000 as partial payment for parts and services rendered in the repair of unit #8. Balance to be paid when work is completed in a satisfactory manner. A motion was made by Commissioner Daggett, seconded by Commissioner Tracy to pay General Electric $150,000 on account and that Mgr. Alexander formulate a letter outlining the problems we have experienced concerning services and to convey the message that complete settlement will be made when satis faction on the operation of #8 has been reached. Motion was carried. A motion was made by Commissioner Tracy, seconded by Commissioner Daggett to transfer $150,000 from the gas division to the electric division. Motion was carried. Mgr. Alexander reported that Home Insurance Company was seeking a settlement on repairs made on units 4 and 7. President Filk instructed Mgr. Alexander and Counsel Peterson to compose a letter requesting a settlement as of this date. Mgr. Alexander reported that the alarm system was installed and working. Mgr. Alexander reported that Northern Natural Gas has applied for a rate increase to be effective October 27, 1981. Counsel Arnold Berkeley of Washington, D.C. has filed an intervention on behalf of the Hutchinson Utilities. Mgr. Alexander presented a letter from Hutchinson Industrial requesting a meeting with the Commission relative to rate structures. A meeting will be arranged. A motion was made by Commissioner Tracy, seconded by Commissioner Daggett to allow the manager and the Commissioners to attend the Minnesota Municipal Utilities Association meeting at Quadna on June 14 thru June 17, 1981. Motion was carried. Counsel Peterson reported on his meeting with Doherty, Rumble and Butler concerning their representation of the Hutchinson Utilities in litigation against Home Insurance Company for repairs on units 4 & 7. The Hutchinson Utilities Commission contend that they had no authorization to represent us. They plan to bill the Utilities for services to date since they have been informed that we do not desire their services. After some discussion, a motion was made by Commissioner Tracy, seconded by Commissioner Daggett stating that Richard A. Peterson be substituted for Doherty, Rumble and Butler effective immediately as attorney for the Commission in the lawsuit against Home Insurance Company. That Mgr. Alexander be authorized to negotiate any fee or expenses due Doherty, Rumble and Butler, subject to final approval of the Commission. Motion was carried. Mgr. Alexander reported that Rolls Royce representatives are coming to gather more information. The following are April payables: FJ I[] APRIL PAYABLES - ELECTRIC Richard Peterson Petty Cash Redman Travel Region 6E Comm. Action Marge Schiro Anderson Chemical Border States Elect. Colonial Life Continental Safety Equip. Cooper Energy Services H & C Electric The Harco Corp. I. B. M. Corp. Ingersoll -Rand Company K -Mac Air Freight Minn. Bearing Co. Northern States Supply Peterson - Wisdorf Inc. Quast Transfer Standard Oil United Electric Corp. Waldor Pump & Equip. W E S C 0 Continental Assurance Redman Travel R. H. Alexander Craig Hardel Allen Quas t Reg Schindler Lyle Hoff Sergie Febles Citizens Bank & Trust State Treasurer Petty Cash Orville Kuiken Steven Birdsall H. W. Filk Credit Bureau Clinton Tracy A & B Electric Bill Breitkreutz Life insurance Continental Assurance Medical insurance New York Life Insurance Rent American Payment Centers Meter reading Pauline Bipes Rent Mrs. Fred Briggs Lease Burlington Northern Deposit to Bond Payment Acct. Citizens Bank & Trust Meeting expense Eugene Daggett Employees utility bills w/h Hutch Utilities - U.B. Due to Gas - Accounts Natural Gas Division Richard Peterson Petty Cash Redman Travel Region 6E Comm. Action Marge Schiro Anderson Chemical Border States Elect. Colonial Life Continental Safety Equip. Cooper Energy Services H & C Electric The Harco Corp. I. B. M. Corp. Ingersoll -Rand Company K -Mac Air Freight Minn. Bearing Co. Northern States Supply Peterson - Wisdorf Inc. Quast Transfer Standard Oil United Electric Corp. Waldor Pump & Equip. W E S C 0 Continental Assurance Redman Travel R. H. Alexander Craig Hardel Allen Quas t Reg Schindler Lyle Hoff Sergie Febles Citizens Bank & Trust State Treasurer Petty Cash Orville Kuiken Steven Birdsall H. W. Filk Credit Bureau Clinton Tracy A & B Electric Bill Breitkreutz Life insurance 203.33 Medical insurance 7,618.00 Rent 45.00 Meter reading 290.00 Rent 20.00 Lease 25.00 Deposit to Bond Payment Acct. 55,070.84 Meeting expense 107.29 Employees utility bills w/h 869.34 Due to Gas - Accounts 593,753.27 Receivable for March Legal retainer 200.00 Meter refunds & interest 275.01 Meeting expense - B. Daggett 218.00 Overpayment of bill 81.71 Meter reading 290.00 Chemical inventory 4,179.32 Distribution inventory 234.56 Accident insurance withheld 53.50 Plant supplies 34.53 Engine inventory #1 & V, 51,058.26 Engine maint. #7 Meter room, mdse. 447.46 Loop line 2,638.50 Maint. charge 760.50 Maint. #8 4,531.00 Freight 49.50 Maint. Engine #1 6.96 Plant supplies 51.74 Loop line 866.13 Freight 172.68 Gasoline 10,300.89 Misc. - Plant 8.09 Engine inventory #8, Maint. #8 24.23 Distribution inventory 199.63 Life insurance 48.90 Meeting expense 2,369.00 Meetings - Mpls., Chicago 285.27 Meter refund & interest 31.90 I 3.48 8.29 2.49 10.83 Federal tax withheld 5,153.64 PERA withheld & expense 3,773.74 Postage 621.30 Meeting expense 194.26 Probeye, pump, etc. 5,720.00 Meeting expense - Anoka 60.74 Subscriber fee 107.50 Meeting expense - Anoka 137.54 Misc. distribution expense 42.00 Roof repair 500.00 R. H. Alexander Meeting expense - Anoka 263.09 Minn Mun. Util. Assn. Registration - Meeting Anoka 176.00 Citizens Bank & Trust Federal tax withheld 5,607.92 State Treasurer PERA withheld & expense 3,934.69 Hutchinson Utilities Collection expense 358.25 State Treasurer FICA withheld & expense 6,873.16 United Airlines Air freight 299.15 Beverly Krueger Data entry expense 17.50 Hutchinson Utilities Due to Natural Gas Division - 7,072.39 Interest Petty Cash Postage, office supplies, gas, 279.31 etc. Citizens Bank & Trust Deposit to savings 100,000.00 Peterson - Wisdorf Distribution inventory 242.26 Norman Equip. Company Plant supply inventory, 180.54 Maint. unit #2 H & C Electric Distribution inventory 53.34 General Electric Supply Meter inventory, transformer 8,002.32 inventory, distribution inv. Fluid Mechanics Engine inventory #1 1,390.07 Border States Elect. Transformer inventory 14,906.57 Burmeister Electric Co. Meter inventory, meter exp. 1,802.79 W E S C 0 Transformer inventory, Plant 174.60 supplies Sterling Electric Distribution inventory, Plant 1,549.71 supplies St. Regis Paper Company Distribution inventory 2,440.00 A & B Electric Misc. - Plant 10.93 Albrecht Oil Company Gasoline 193.80 Allen Office Products Office supplies 30.79 American Linen Supply Laundry 65.06 American Welding Supplies Plant supplies 36.50 Amoco Oil Company Gasoline 25.79 Anderson- Waalen Interiors Paint - new meter room 170.82 Apollo Piping Supply Building maint. 171.94 Betker Construction Repair roof sheathing 139.57 Big Bear Inc. Truck maint. 1.56 Chromalox faint. engine #2 833.80 Coast -To -Coast Plant supplies 21.12 Coca -Cola Bottling Dry ice - maint. engine #7 13.00 Commissioner of Revenue Sales tax 13,240.36 Continental Safety Equip. Safety glass 22.13 Culligan Water Condition Misc. expense - Plant 8.10 Curtis 1000 Inc. Office supplies 369.80 Ed Davis Business Mach. Office supplies 38.50 Ditch Witch of Minnesota Truck maint. 9.55 Dover Corp. Engine mains. #7 2,099.53 Duane's Lock Repair Keys 170.50 Duro -Test Corp. Plant supplies 75.24 Exline Inc. Engine maint. #7 6,220.95 Fabricare Cleaners Family Rexall Drug Laundry Office supplies 337.00 16.90 Farm & Home Distributing Truck maint., Plant supplies 25.02 Farmers Elevator Misc. - Distribution 3.45 Forbes Auto & Service Truck maint. 825.02 Four Seasons Services Cup inserts 33.40 G. T. C. Auto Parts Plant supplies 20.99 Gamble Store New meter room 13.50 General Trading Co. Tools, plant supplies, misc. 155.84 Grayb ar Electric Engine maint. #3, 4, 7 80.18 The Harco Corp. Freight 249.32 H. A. Holden Inc. Plant supplies 64.13 Home Bakery Rolls 357.40 Hutch Util Empl Fund Employee fund withheld 117.00 Hutch Utilities - U.B. Engines 144,419.92 148,721.31 Plant & Utility 1,303.03 Center Interdepart Labor 2,998.36 Hutch Wholesale Plant supplies, maint. eng. #8, 178.53 Truck maint. I B E W Local 949 Union dues withheld 460.76 Jahnke's Red Owl Coffee 269.60 Junker Sanitation Refuse sewer 86.00 K -Mac Air Freight Freight 37.50 Kemske Paper Company Office supplies 18.81 L & P Supply Company Truck maint. 24.06 Leef Bros. Laundry 223.56 McLeod County Landfill Misc. expense 4.00 Metal Craft Inc. Mdse. 72.72 Millerbernd Mfg. Mdse. 72.40 MN Valve & Fitting Co. Plant supplies 33.11 Multi Amp Corp. Meter expense 478.12 Northern States Supply Plant supplies 21.91 Paper Service Company Plant supplies 63.54 Patchin Fertilizer Fertilizer 110.00 Petty Cash Meter refunds & interest 270.40 Plaza OK Hardware Meter room, plant supplies 38.81 Popp Electric Remove one service from 430.77 Albrecht's Power Process Equip. Maint. water system 1,192.75 Quade's Plant supplies 16.25 Quast Transfer Freight 31.56 Rutz Plumbing Maint. water system 121.85 Simonson Lumber New meter room 246.34 Snap -On Tools Corp. Misc. - Plant 80.00 Sorenson Farm Supply Truck maint. 50.69 Standard Register Co. Office supplies 1,074.76 Standard Solvents Co. Plant supplies 160.75 Swanke Motors Truck maint. 32.60 Tri- County Water Condition Misc. expense 19.50 Uniforms Unlimited Uniforms 247.05 W. D. Enterprise Truck maint. 9.50 Welders Supply Plant supplies 40.01 Zep Manufacturing Plant supplies 90.00 Republic Airlines Freight 375.65 Kenneth Schultz Meter refund & interest 42.60 Wanda Roth 42.60 Kyle Olson 22.50 Vincent McGraw Dale Herrmann Kevin Evenson Kevin Compton Mark Benton Sylvia Ahl DuWayne Abel Radisson South Hotel American Freight System Apollo Piping Supply Burlington Northern Cooper Energy Services Dale Tile Company Dostal & Oleson Oil Co. S. A. Nies General Electric Co. Heikes Hardware Hank Hutch Co -op Hutch Telephone Co. Mankato Business Products Price Electric Sears United Power Assn. Colonial Life First National Bank First State Federal Meter refund & interest i School Expense Freight Plant Supply inventory Lease Engine inventory #7, maint #7 New meter room Plant supplies Misc. expense Plant supply inventory Building maint. Fork lift maint. Telephone Office supplies New meter room, mdse. Plant supplies Purchased Power for April APRIL PAYABLES - GAS Hutch Utilities - U.B. Ralph's Garage Apollo Piping Supply Case Power & Equip. First National Bank Fisher Controls Company Hutch Iron & Metal Minvalco Inc. Peerless Mfg. Company Transport Clearings Citizens Bank & Trust State Treasurer Apollo Piping Supply Orville Kuiken Steven Birdsall Credit Bureau Citizens Bank & Trust State Treasurer Hutchinson Utilities State Treasurer Accident insurance withheld Deposit to Incremental Pricing Account Deposit to Contract for Deed Account Employees utility bills w/h Truck Maint. Fittings inventory Truck Maint. Deposit to Contribution Account Regulator inventory Maint. of Mains Mdse. Station equip. - City Gate Freight Federal tax withheld PERA withheld & expense Fittings inventory Meetings expense Probeye pump, etc. Subscriber fee Federal tax withheld PERA withheld & expense Due to Municipal Electric Plant - Prior expense FICA withheld & expense 42.60 21.20 21.20 42.40 21.30 21.30 42.40 48.15 34.63 582.83 25.00 8,849.36 252.00 109.20 9.60 599.44 29.32 10.00 1,266.08 57.12 79.77 4.41 151,949.70 12.00 37,087.00 500.00 244.00 19.59 64.30 15.44 20,900.00 95.89 72.00 87.41 2,800.00 131.29 1,088.06 750.54 4,325.16 194.25 5,720.00 107.50 1,058.94 758.22 8,507.95 1,096.34 1 1 C Clinton Tracy, Secretary ATTEST r �Z_ H. W. Filk, President 1 The Tapecoat Company Torch 91.53 Petty Cash School & meeting expense 16.05 Fisher Controls Regulator inventory 752.49 Apollo Piping Supply Fittings inventory, misc. 3,563.87 expense Albrecht Oil Gasoline 118.13 American Welding Supply Misc. expense 24.10 Arnold Berkeley Legal fees 2,027.17 Circle Hutch Utility Gas Purchased 365,807.60 Commissioner of Revenue State tax withheld 775.66 Duane's Lock Repair Misc. expense 307.00 Farm & Home Distributing Truck maint. 9.06 Fisher Controls Regulator inventory 752.49 General Trading Company Truck maint. 17.08 Great Plains Industrial Mains 205.62 Harpel Bros. Truck maint. 5.60 Hutch Utilities Elec. usage - Peak Shaving 2,774.52 Hutch Wholesale Truck maint., misc. supplies 71.84 I B E W Local 949 Union dues withheld 76.00 Krasen Plumbing Meters 3.27 McLeod Co -op Power Elec. usage - Border Station 59.60 Plaza OK Hardware Truck maint. 8.96 Standard Register Office supplies 144.88 Wigen Chevrolet Truck maint. 2.20 Guy Speaker Misc. supplies 17.67 Hutch Co -op Wally's Tire Shop Truck maint. Truck maint. 5.00 14.50 Circle -Hutch Utility Purchased Gas 3,943.06 There being no further business, a motion was made by Commissioner Tracy, seconded by Commissioner Daggett to adjourn at 5:00 p.m. C Clinton Tracy, Secretary ATTEST r �Z_ H. W. Filk, President 1