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07-27-1981 HUCMRegular Meeting July 27, 1981 All Commissioners were present, also present were Mgr. Alexander, Ruth Hakel, Ivan Larson and Counsel Peterson. The meeting was called to order at 2:00 p.m. by President Filk. The minutes and the June payables were considered. A motion was made by Commissioner Daggett, seconded by Commissioner Tracy to accept the minutes of the June Regular Meeting in their printed form. The motion was carried. A motion was made by Commissioner Tracy, seconded by Commissioner Daggett to accept the gas and electric divisions payable bills for June as presented. The motion was carried. President Filk commented on the financial report and commended staff for their efforts in compiling the other various reports on the Utility operation. Discussion took place on all of the presented reports. All reports indicated the high cost of operation and the low margin of profit. Mgr. Alexander reported on a meeting with General Electric representatives concerning the balance of their labor and repairs charges on #8 which is $160,221.86. He also reported that a meeting with Home Insurance Company was set for August 13, 1981, to settle the claim for unit #8. After discussion, a motion was made by Commissioner Daggett, seconded by Commissioner Tracy to approve a final settlement to General Electric in the amount of $160,221.86 for labor and repair of unit #8. The motion was carried. Mgr. Alexander reported that Hutch Industrial desired a meeting with the Commission concerning electric rates. A meeting was set for August 12, 1981, at 1:30 p.m. The regular monthly meeting of the Commission was changed from August 31 to August 27 at 9:30 a.m. Mgr. Alexander discussed a letter from Northern States Power relative to a tie with Hutchinson Utilities. He also had met with United Power Association relative to their tie with Hutchinson Utilities. They indicated that they would increase the capacity of the tie at their expense by next spring (1982). Mgr. Alexander reported that the contract for deed on the gas warehouse was being taken over by Roger Dummer of Barbdon Realty of Hutchinson, Minnesota. 1 1 1 Mgr. Alexander presented a suggested plan to cover underground installations. (Attached) After discussion, a motion was made by Commissioner Daggett, seconded by Commissioner Tracy to adopt the policy as presented subject to review on a yearly basis. The motion was carried. Underground Residential Services New Homes: All new homes constructed within the city limits shall have underground electric service. (Presently, new homes in areas that have overhead lines may have overhead electric service for $75.00.) Rate for underground service: $150.00 for 100 Amp service Excess over 100 Amp @ 50(,, Amp Conversion of overhead to underground: The individual customers who are upgrading the electrical service in their present homes or who desire underground instead of overhead service, shall be responsible for hiring an electrician to convert the meter entrance from overhead service to underground service. Hutchinson Utilities shall install the underground conductor from pole to house for $75.00 and furnish the new meter socket. In areas where Hutchinson Utilities Commission deems it necessary to convert overhead to underground service, the Utilities shall install all mainline primary and secondary feeders and equipment. Maps of the area to be converted shall be sent to all local electricians so that they may quote on the installation of underground conductors from Utility feeders and equipment to the homes involved and convert the homes from overhead to underground service. The successful quote shall then be divided by the total number of homes involved. Hutchinson Utilities Commission shall be reimbursed for one -half of this amount by each individual property owner. The membership fee for the Great Lakes Electric Consumer Association has been set at $150.00 with a yearly charge of $0.002 times megawatt hours sold plus $0.01 times number of connected meters. Counsel Peterson reported that he had been in touch with Larry Zelle of Robins, Zelle, Larson and Kaplan on the Curtiss - Wright litigation. He advised a meeting in the near future concerning terms of a settlement if the opportunity arose. The Commission feels that proceedings should go forward as rapidly as possible. Counsel Peterson stated that he had discussed the Home Insurance litigation concerning units #4 and #7 with Counsel Zelle. This matter will be resolved at the proposed meeting. The next item of business presented by Mgr. Alexander concerned profits and losses in the electric division. Ivan Larson and Ruth Hakel discussed the 3M account in detail with the Commission. The problem lies in the fact that in the first six months of 1981, the Utilities showed a loss. After lengthy discussion, staff was instructed to make a rate study of all rates and bring a proposal to the Commission. Commissioner Daggett felt that staff had to look at about a 10% increase in overall profit. This was in agreement with President Filk and Commissioner Tracy. On a motion by Commissioner Tracy, seconded by Commissioner Daggett, Mgr. Alexander and a Commissioner will attend the Midwest Gas Association meeting on August 23, 24 & 25, 1981, at Lake of the Ozarks in Missouri. The motion was carried. The following are June p ayab les : 1 JUNE PAYABLES - ELECTRIC WESCO Meter inventory, mdse. 3,769.91 H & C Electric Distribution inventory, mdse. 249.25 Graybar Electric Plant supplies 49.10 Burmeister Electric Meter inventory, wire, interconnection 5,231.63 project Border States Supply Mdse. 104.97 Pauline Bipes Meter reading 290.00 Mrs. Fred Briggs Rent 20.00 Brad Burich Mowing lawn 64.00 Citizens Bank & Trust Deposit to Bond Payment account 55,070.84 Colonial Life & Accident Accident insurance withheld 41.50 Eagle Signal Division Maint. water system 51.21 Fire Extinguisher Sales Misc. expense 86.00 Fresco Misc. truck expense 20.22 Hutch Util. Petty Cash Postage 625.23 Hutch Util. - util. bill Employee utility bills withheld 835.00 I. B. M. Corporation Maint. contract 349.00 Kearney Distribution misc. supplies 380.27 Kemske Paper Company Office supplies 9.68 Moorhead Machinery Maint. engine #2 1,324.11 Natural Gas Division Due to Natural Gas Division - May 452,571.32 accounts receivable Richard Peterson Legal retainer 400.00 Petty Cash Meter refunds & interest 186.30 Power Supply Company Maint. engine #8 108.80 Premier Fastener Co. Plant supplies 47.10 Quast Transfer Freight 23.17 Marge Schiro Meter reading 290.00 State Treasurer PERA withheld & expense 3,869.83 Citizens Bank & Trust Federal tax withheld 5,510.12 San Francisco Hilton Meeting expense 450.00 Continental Assurance Life insurance 203.33 Continental Assurance Life insurance 48.90 Mark Rieger Meter refund 11.92 Allen Monson 13.86 Doug Pribyl 28.98 Warren Re tzlaff 8.07 Tony Bushard 4.57 Harry Bachman Refund Overpayment 7.78 New York Life Insurance Medical insurance 6,888.31 American Freight System Freight 55.62 Barco Bearing Company Maint. Engine #7 82.42 Central Minn Comm. Truck radio repair 36.00 Cooper Energy Services Maint engine #7 2,603.36 Grayb ar Electric Distribution inventory, misc. exp. 1,249.42 I. B. M. Corporation Maint. contract 411.50 3M Company Maint. water system 89.82 Power Supply Company Maint. engine #8 90.24 Standard Printing Office supplies 69.50 Triplett Corporation Tool - Plant 82.43 Warners Industrial Plant supplies 92.87 R. H. Alexander Meeting - Quadna 96.59 Anderson Chemical Chemical inventory 4,856.48 Border States Supply Distribution inventory 148.55 Burmeister Electric Loop line 3,034.35 Cooper Energy Services Engine inventory #7 583.97 Eugene Daggett Meeting - Quadna 308.83 Fluid Mechanics Inc. Engine inventory #1 24.98 Four Seasons Services Cup inserts 33.40 General Electric Supply Meter inventory 836.86 H & C Electric Supply Mdse. box inventory 75.34 J. B. House Counselors New meter room 39.00 McMaster -Carr Supply Tools 12.42 Dr. L. V. Manther Safety glasses - Curt Dahl 92.00 Miller Sales Company Engine inventory #7 11.74 Millerbernd Mfg. Co. Mdse. 1,794.00 Northern States Supply Plant supplies 17.36 Paper Service Company Plant supplies 79.80 Petersen - Wisdorf Inc. Distribution inventory 392.54 Plowman's Truck maint. 3.00 Power Supply Company Engine maint. all engines 560.80 Premier Fastener Co. Tool 19.54 Quast Transfer Inc. Freight 23.15 Sterling Electric Co. Plant supplies 79.18 Clinton Tracy Meeting - Quadna 326.45 United Electric Corp. Engine maint. #7 2.16 W E S C 0 Meter inventory, transformer 251.71 inventory Zep Mfg. Plant supplies 651.50 Zins Machining Maint. engine #7 178.00 Leeds & Northrup Maint. Engine #9 21.66 Citizens Bank & Trust Federal tax withheld 5,148.54 State Treasurer PERA withheld & expense 3.776.73 State Treasurer FICA withheld & expense 6,858.94 Commissioner of Revenue State tax withheld 4,118.30 Pamida Coffee filters 9.90 Sterling Electric Co. Mdse., plant supplies 27.92 H & C Electric Distribution inventory, box 1,752.91 inventory, mdse., misc. Vincent Brass & Alum. Maint. water system 351.20 Hutch Utilities Collection expense 179.22 City of Hutch Refund - Payment applied to wrong 34.21 bill Air Hydraulic Systems Engine maint. #8 332.39 Albrecht Oil Gasoline 94.74 Allen Office Products Office supplies 12.79 American Air Filter Engine inventory #9 260.68 American Linen Supply Laundry 58.48 American Welding Supply Plant supplies 35.85 Amoco Oil Company Gasoline 15.56 Anderson- Waalen Int. Paint - meter room 8.80 Apollo Piping Supply Misc. supplies 67.83 Associated Consultants Engineering Services 8,254.89 Border States Supply Distribution inventory 1,708.55 Brinkman Studio Film, photo 93.30 Burmeister Electric Distribution inventory 294.10 Central MN Comm. Radio repair 21.00 City of Hutchinson Water bill 183.34 Coast -To -Coast Misc. supplies 5.69 Commissioner of Revenue Sales tax 11,883.05 Cooper Energy Services Engine inventory #7 365.10 Culligan Water Cond. Misc. expense 16.20 Dostal & Oleson Oil ' Plant supplies 225.50 Electric Motor Co. Mis c. 3.50 Fabricare Cleaners Laundry 282.50 Family Rexall Drug Office supplies 33.45 Farm & Home Misc. - distribution 18.85 Farmers Elevator Rock - grounds 245.76 Felska's Auto Service Truck maint. 52.79 Forbe's Auto Center Truck maint. 98.81 General Electric Supply Meter inventory 187.96 W. W. Grainger Inc. Maint. engine #9 13.06 Graybar Electric Meters 484.32 H & C Electric Distribution inventory 1,191.00 Harris Machinery Co. Simplex jack 858.00 Home Bakery Rolls 382.08 Hutch Mfg. & Sales Maint. Plant 67.48 Hutch Telephone Co. Telephone 1,214.62 HU Employee Fund Employee fund withheld 117.00 HU - utility bills 211,423.18 Interdepartmental Labor 1,154.96 Engines 209,603.94 Plant usage 86.60 Center usage 577.68 Hutch Wholesale Plant supplies, tools, truck 193.33 maint. IBEW Local 949 Union dues withheld 460.76 Ink Spots Inc. Office supplies 78.00 J. C. Penney Company Uniforms 835.49 Jahnke's Red Owl Coffee 147.56 Junker Sanitation Refuse charge 76.00 Kato. Tool & Equip. Cable cutter - distribution 142.93 L & P Supply Company Truck maint. 34.71 Richard Larson Repair roof at Utility Center 1,466.91 Leef Bros. Laundry 158.95 Mankato Business Prod. Office supplies 153.08 Minnesota Hallowell Shelves 99.51 MN Municipal Util Assn. Registration 160.00 Moorhead Machinery Maint. engine #2 9,649.80 Paper Service Company Plant supplies 138.51 Power Supply Company Plant supplies 214.77 Precision Castweld Engine inventory X61, 3 & 5 3,560.00 Quast Transfer Freight 33.63 Rockite Silo Distribution expense 3.60 Rutz Plumbing Meter covers 110.00 Simonson Lumber New meter room 36.10 Sorenson Farm Supply Tool rental 25.09 United Power Assn. Purchased Power for June 126,978.33 Vincent Brass & Alum Accessory plant equip. 128.60 Welders Supply Co. Plant supplies 40.51 W E S C 0_ Distribution inventory 107.80 Wigen Chevrolet Co. Beverly Krueger H. W. Filk Clint Tracy Tradex - Sammons Petty Cash Petty Cash Vera Ziemer Keith Schroeder Ronald Monson Vernon Meyer Darla Markgraf Orla Lange LeRoy Kuhl Mary Konerza Vernetta Hintz Mrs. Mary Dostal Catherine Doring Paula Dank Drahos Thomas Cook McGraw- Edison Service R. H. Alexander Plaza OK Hardware Warner Industrial Supply General Trading Co. United Airlines Cooper Energy Services Chicago Tube & Iron Co. Ditch Witch Sterling Electric Co. H & C Electric Truck maint. Office expense Meeting expense San Francisco Meeting expense Engine inventory maint. #7 Meter refunds & Postage, office misc. - Quadna, - San Francisco #7, engine interest supplies, gas, Meter refund & interest Engine maint. #3 Meeting expense Plant supplies, misc. Plant supplies Plant supplies, mdse. Freight supplies mis c. Engine maint. & inventory #7 Engine maint. #7 Truck maint. Distribution inventory Distribution inventory JUNE PAYABLES - GAS American Meter Division E. J. Brooks Brad Burich Colonial Life First National Bank First State Federal Fisher Controls HU - utility bills State Treasurer Citizens Bank & Trust American Freight System Harris Pine Mills Orville Kuiken Fisher Controls Matheson Gas Products Meter maint. Meter maint. Meter maint. Accident insurance withheld Deposit to Incremental Pricing account Deposit to Savings Contract for Deed Regulator inventory Employee utility bills withheld PERA withheld & expense Federal tax withheld Freight Paint meters Meeting expense - Omaha Regulator inventory Misc. expense 195.13 92.50 470.55 60.50 920.75 159.28 198.39 21.30 42.60 42.40 22.40 21.30 21.30 21.30 21.30 21.30 21.20 21.30 22.40 21.30 32,900.00 254.21 40.80 10.73 498.52 7.00 140,000.00 344.73 206.30 306.40 871.10 25.29 66.52 54.00 12.00 32,055.88 L11 /1 163.01 309.00 789.16 1,148.48 26.32 273.00 125.40 1,164.23 141.00 I 1 1 1 1 Hutch Utilities Chas. Olson & Sons Citizens Bank & Trust State Treasurer State Treasurer City of Hutchinson Fisher Controls Albrecht Oil American Welding Supply Apollo Piping Supply Circle Pines Utility Circle -Hutch Utility Coast -To -Coast Forbes' Auto Service Heikes Hardware Hank Hoffman Plumbing HU Employee Fund HU - utility bills Hutch Wholesale I B E W Local 949 McLeod Coop Power Assn. Minvalco Inc. Martin Narr Northern Natural Gas Commissioner of Revenue Petty Cash Plaza OK Hardware General Trading Co. Mueller Company The Tapecoat Company Due to Municipal Electric Plant - 8,640.66 May expense Truck maint. Federal tax withheld PERA withheld & expense FICA withheld & expense Contribution Freight Gasoline Misc. expense Fittings inventory Purchased Gas for June Purchased gas for June Maint. of meters Maint. of trucks Truck maint. Truck maint. Employee fund withheld Interdepartmental labor, electric usage at peak shaving Maint. trencher, misc. Union dues withheld Electric usage at Peak Shaving 44.14 1,113.02 768.55 1,164.66 62,500.00 35.87 81.61 47.30 35.12 26.07 350,239.28 26.88 28.81 16.94 2.35 24.00 2,525.87 Fittings inventory Mowing Purchased gas for June State tax withheld Collection expense, office supplies Truck maint, meter maint. Misc. supplies Fittings inventory Mains & services 47.30 76.00 28.65 188.67 56.00 115.45 817.56 12.40 58.88 61.90 398.96 528.86 There being no further business, a motion was made by Commissioner Tracy, seconded by Commissioner Daggett to adjourn the meeting at 6:05 p.m. The motion was carried. ATTEST' {, H. W. Filk, President sue/ Clinton Tracy, Secretary