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04-27-1987 HUCMRegular Meeting April 27, 1987 Commissioner Daggett and Commissioner Lyke were present; also present were Mgr. Hakel, Jane Hodgins, Hutchinson Leader staff writer, Lon Roach from KDUZ and Sue Winter. President Daggett called the meeting to order at 1:00 P.M. The minutes of March 24, 1987 regular meeting were reviewed. Mgr. Hakel informed the Commission that transportation and rigging charges for the stator coils were included under warranty, payment was negotiated and the above items were included on purchase order 410701) sent to General Electric. Also in the future all budgets will be reviewed during the months of May and June and new or revised budgets will commence during the summer months. A motion was made by Commissioner Lyke, seconded by Commissioner Daggett to accept the minutes as written. Motion was unanimously carried. The March payables for both entities were discussed. A motion was made by Commissioner Lyke, seconded by Commissioner Daggett to accept the payables as presented. Motion was unanimously carried. At this time Commissioner Beatty arrived. Commissioner Daggett updated the Commission on the status of the Integrated Transmission Agreement. United Power Association has received lien waivers and documents from REA. United Power Association has to receive approval from SMMPA. Hutchinson Utilities would like agreement signed and in effect by May 1, 1987. Mgr. Hakel presented the March financial statements. Mgr. Hakel was instructed to write a letter to Robins, Zelle, Larson & Kaplan regarding the status of the Curtiss - Wright lawsuit and to report back to the Commission at the next meeting. A motion was made by Commissioner Beatty, seconded by Commissioner Lyke to accept the financial statements as presented. Motion was unanimously carried. Mgr. Hakel reviewed the first quarter electric and gas budgets. Wally Hombach presented generating plant report. Wally discussed installing crankshaft protective devices on units 2, 3, 4 and 7. It was suggested to remove the two 20,000 gallon underground fuel tanks located in front of the power plant. A motion was made by Commissioner Beatty, seconded by Commissioner Lyke to install crankshaft protective devices on either unit 3 or 4 this year. Motion was unanimously carried. t.j. Dave Schmidt of Associated discussed Hutchinson's loa will review Dave Schmidt's The study to include a ten future system planning. Consultants and "Butch" Wentworth J growth. The Commission and Mgr. Hakel fee proposal for a study (copy attached). year load growth projection and overall Manager's Report: 1. The Minnesota Municipal Utilities Association's summer meeting will be held in Brainerd, MN on June 21 - 24, 1987. 2. The May regular meeting will be held on May 26, 1987 at 1:00 p.m. and the June regular meeting will be held on June 24, 1987 at 1:00 P.M. 3. Purchased M -470 Vermeer from McLeod Co -op in the amount of $12,500. 4. Joan Limvere and Sue Winter will go to Litchfield Utilities on May 6 to review Power Manager software documentation to decide if Hutchinson Utilities should purchase Power Manager. 5. At a recent meeting with City Council and Utility members, ornamental street lighting was discussed. It was the consensus of opinion the City Council should set standards for future ornamental street lighting. Old Business: None New Business: None The following are March payables: AVASSOCIATED CONSULTANTS .m.r=NGir-jEERS, INC. REGISTERED PROFESSIONAL ENGINEERS 3131 FERNBROOK LANE NORTH MINNEAPOLIS, MINNESOTA 55441 612/559 -5511 April 23, 1987 Hutchinson Utility Commission 225 Michigan Street Hutchinson, MN 55350 Sbj: Electrical System Study Gentlemen: We wish to express our appreciation for the opportunity to prepare a proposal to review, study and make a report regarding certain aspects of your electrical system as requested by your Electrical Supt. Mr. M.D. Wentworth in his letter addressed to us dated April 2nd, 1987. We have prepared the attached proposal wherein we offer to review and study the present interconnection facilities, the 13.8KV trunk feeders and loop, changes to the distribution system such as converting overhead to underground and the possibility of reducing purchased energy cost with centralized load control. This study will be quite comprehensive because of the size of the improvements anticipated in Mr. Wentworth's letter. The studies will address concerns in addition to those that are listed in Mr. Wentworth's letter as our experience as shown in the past that all aspects of any major expansion could be reviewed and considered. One such aspect would be whether additional loops to bring large blocks of power around and to remote areas of the city of Hutchinson should be 69KV, or 34.5KV. Other considerations to other portions of the study will be considered as outlined in the attached proposal. We hope this proposal will provide you with the necessary informa- tion such that you may make an intelligent decision as to whether or not studies should be made for the concerns of your electrical superintendent. If there are any questions, we will be present to discuss this proposal at your next commission meeting. DPS /da Enclosure Yours truly, ASSOCIATED CONSULTANTS ENGINEERS, INC. David Sc midt, v PROPOSAL FOR STUDIES OF HUTCHINSON MUNICIPAL ELECTRIC UTILITY SYSTEM OF HUTCHINSON, MINNESOTA BY ASSOCIATED CONSULTANTS ENGINEERS, INC. REGISTERED PROFESSIONAL ENGINEERS 3131 FERNBROOK LANE NORTH MINNEAPOLIS, MINNESOTA 55441 APRIL 23, 1987 CONTENTS SUBJECT PAGE System Capacity and Limitations 1 Looping Distribution System 0 Improvements of Existing Distribution System 3 Load Management 4 Summation 5 �1 SYSTEM CAPACITY AND LIMITATIONS Bottlenecks Our Study will review the existing interconnection substations where transformation occurs. There are two such substations - one at plant one and one at plant two. We will address the space limitations and costs of bringing additional energy through the substation at Plant 1 and also at Plant 2. We will investigate the necessities of either enlarging these substations or adding an additional substation at another site. We will project future requirements and list advantages and disadvantages of expansions at all locations reviewed. We will investigate the limitations of trunk lines between substations, the limitations of the capacity of bustie transformations, such as the transformation from 13.8 KV to 4.16 KV. We will review such things as reliability, capacity, limitations of the largest block of power that can be transferred for a given voltage and maximum practical trunk line. This study will address item no. 1 in Mr. Wentworth's letter dated 4/2/87. Estimated Cost . . . . . . . . . . . . . . . . . . . . . . . .$10,000.00 - 1 - 0 LOOPING DISTRIBUTION SYSTEM This Study will review the limitations of your present loop system along with improvements suggested between Plant 1 and the western area of Hutchinson near the bridge by the Happy Chef Cafe. We will review the esthetics considerations of the different voltages available for future loops of your system. These voltages will be restricted to 69 KV, 34.5 KV and 13.8 KV. We will discuss and list costs of underground versus overhead for the voltages considered along with costs. We will also discuss the cost and esthetics of future distribution lines and the possibility of integrating present loop lines into the distribution system in the future with larger future loops. This study will cover item no. 2 of Mr. Wentworth's letter dated 412187. The Estimated Price of this Study will be . . . . . . . . $1,000.00 - 2 - IMPROVEMENTS OF EXISTING DISTRIBUTION SYSTEM This Study will review conversions of the areas essentially limited to the downtown business area from the existing voltage to a higher voltage, that is from 4.16 KV to 13.8 KV. We will review the existing facilities and any limitations that might require upgrading or enlarging transformers serving customers and their associated enclosures. All facilities that can be utilized with a higher voltage will be listed and reviewed. Any conversion in one specific area will be affecting other areas and this inter - relation between one voltage system and another voltage system will be discussed. In particular the limitations as to backfeeding from one feeder to another or looping two feeders together to add reliability will be reviewed and discussed. We will discuss overhead versus underground for the different voltages and will list costs for each type of construction reviewed and discussed. This portion of the Study will cover the two items numbered 3 and 4 in Mr. Wentworth's letter dated 4/2/87 Studying River Crossings . . . $1,000.00 For Item No. 4 Feasibility of Converting East and West side of Main Street to a higher voltage . . . . . . . . . . . . . . . . . . . . . . . . $1,000.00 Total Estimated Cost for this portion of the Study . . . . . . . . $2,000.00 LOAD MANAGEMENT The fifth item in Mr. Wentworth's letter was the estimated amount of summer peak load which could be shed by controlling the air conditioning load. This much information could be furnished at no cost utilizing information obtained in the Studies listed above. If you are to proceed with this item alone it would be somewhere in the neighborhood of $1,000.00. A load management study should be more complete than the estimation of the amount that could be shed by controlling the air conditioning units. If an accurate estimate was to be made, a survey would have to be taken of all air conditioning and other interruptible units within the city. This has been done in other cities, and one way is accomplished with drafting a questionnaire that is included with all the bills sent out at several monthly billings. It takes several interrogations, as people fail to respond to them if only one month has mailings. A questionnaire should explain something about load management and ask the customers if they would be interested in a more economical rate if you chose to purchase power for interruptible loads at a lower rate or if they would be interested in helping the City on a voluntary basis keeping all their rates low by volunteering to have their air conditioner and other interruptible loads controlled. Along with a statement of this kind, a questionnaire would include whether or not they have a unit, the size of the unit and what they estimate this unit runs per year. Some units run many hours and some only run a few hours a year. By getting customer input a more accurate estimate can be made. A load management report would look into the financial advantages of having load management and the different types of load management available, both centrally controlled and voluntarily controlled. A report of this type also discusses rates and the effect of rates in encouraging people to participate in a load management program. A Study of this type would cost approximately . . . . . . . . $5,000.00 - 4 - SUMMATION The costs as listed above are broken down per Mr. Wentworth's letter. You might choose to have only one study made and each cost reflects the cost of conducting each study individually. If all of the studies are combined or one or two are combined the cost will be less. As an example, if all the studies were made there would be considerable savings. The total Estimated Cost would be . . . . . . . . . . . . . $13,500.00 - 5 - f MARCH PAYABLES - ELECTRIC Jerome J. Hoikka Refund - Overpayment 21.18 Dan Lyons Meter deposit & interest 50.44 Tom Case 81.02 Dawn Rauch 62.66 John Booth 133.95 Nick Stoiaken 69.73 Petty Cash Meeting expense - S utka, Krueger 158.80 Continental Assurance Co. Life insurance 47.60 Citizens Bank & Trust Co. Payroll deposit plan 7,051.69 Firstate Federal Savings Payroll deposit plan 4,360.79 First National Bank Payroll deposit plan 644.68 Citizens Bank & Trust Co. Federal tax, FICA withheld & exp. 8,770.38 PERA PERA withheld & expense 3,965.50 ICMA Retirement Corp. Employee deferred comp withheld 956.00 Putnam Fund Dist. Employee deferred comp withheld 25.00 A C X Corporation Truck maintenance 62.89 American Family Life Employee insurance withheld 128.40 American Payment Centers Rent 66.00 Citizens Bank & Trust Deposit to Contribution Account 25,000.00 City of Hutchinson Contribution to City 75,000.00 Colonial Life & Accident Employee insurance withheld 156.10 Electronic Center, Inc. Plant supplies 2.80 Graybar Electric Co. Supplies 121.20 Hillyard Floor Care Supply Building maint. 163.32 Hutchinson Utilities Employee utility bills withheld 675.00 IBM Corp. Maint. service 257.58 MN Electric Supply Co. Mdse. 24.01 Natural Gas Division Due to Natural Gas Division 428,939.18 Account Receivable Richard Peterson Legal retainer 400.00 Petty Cash Postage 858.40 PERA Employee insurance withheld 18.00 Scientific Columbus, Inc. Meter expense 1,565.72 U.S. Postal Service Stamps 110.00 United Electric Co. Plant supplies 158.80 Warner Industrial Supply Plant supplies 40.75 Burmeister Electric Co. Supplies 30.02 American Test Center Test & inspection of equipment 1,700.00 Hillyard Floor Care Supply Coffee filters 15.95 MN Pollution Control Agency Annual Fee 175.00 Putnam Fund Dist. Employee deferred comp withheld 25.00 ICMA Retirement Corp. Employee deferred comp withheld 956.00 CNA Life insurance 216.36 Graybar Electric Co. Meter inventory 3,161.28 Woodmen Accident & Life Medical insurance 5,293.49 Lincoln National Life Employee insurance withheld 26.00 UPA Station equipment maint. 163.00 Michael Wegscheid Meter deposit & interst 61.28 City of Hutchinson Insurance premium 7,507.00 First Trust Co., Inc. 1986 Bond Issue - initial fee 885.50 PERA PERA withheld & expense 3,947.12 MARCH - ELECTRIC Commissioner of Revenue Citizens Bank & Trust Co. Firstate Federal Savings Citizens Bank & Trust Co. First National Bank MN Electric Supply Co. Graybar Electric Co. Scientific Columbus Petersen - Wisdorf, Inc. MN Electric Supply Graybar Electric Co. Abbott Electronics Allen Office Products American Linen Supply American Welding Supply Associated Consultants Charles Bailly & Co. Border States Electric Brandon Tire Brooklyn Center Welding Burmeister Electric Co. Cash Wise Central Eyewear Dist. Central MN Communications Commissioner of Revenue Connie's Custom Paint Copy Equipment, Inc. County Market Crow River Press, Inc. Culligan Water Conditioning Ditch Witch of MN Dostal & Oleson Oil Electronic Center, Inc. Erickson Oil Products Fabricare Cleaners Family Rexall Drug Farm & Home Distributing Forbes Auto Stores G. T. C. Auto Parts Gobal Equipment Co. H & C Electric Supply Hillyard Floor Care Supply Hutchinson Co -op Hutchinson Fire & Safety Hutch Util - Emp. Fund Hutch Utilities Hutch Wholesale Supply IBM Corp. State tax withheld Federal tax, FICA withheld & Payroll deposit plan Payroll deposit plan Payroll deposit plan Dist. inv., supplies, mdse. Dist. inv. Meter inv. Dist. inv., box inv. Dist. inv. Supplies, truck maint. Dispatch center exp. Office supplies Laundry Plant supplies, supplies Engineering fees Audit Supplies Truck maint. Maint. of plant equip. Supplies Rolls Safety Glasses Radio maint. Sales tax Truck maint. Office supplies Coffee & cookies Office supplies Plant supplies Power operated equip. maint. Plant supplies Supplies Plant supplies Laundry Office supplies Supplies Truck maint. Plant supplies, truck & power operated equipment maint. Supplies - safety Station equip., tools Plant supplies Plant supplies Extinguisher recharge Employee fund withheld Usage, plant & center Plant supplies, truck & power operated equip. maint., mdse paint Office supplies exp 4,433.74 8,699.22 4,227.94 6,938.97 746.71 524.93 1,527.11 23,079.77 15,682.88 119.07 486.00 86.26 83.72 64.92 275.84 630.50 6,235.62 95.42 249.19 676.00 126.57 48.99 77.15 180.33 18,458.49 175.00 175.17 245.95 288.25 12.15 228.44 107.17 17.23 8.00 66.50 4.43 26.81 44.80 171.21 522.69 93.33 97.25 12.50 38.10 96.00 3,245.52 2,733.24 165.00 r- I [1 I I MARCH - ELECTRIC IBEW Local 949 Union dues withheld 492.28 Ideal Shoe Shop Building maint. 67.50 Ink Spots, Inc. Office supplies 130.00 Junker Sanitation Refuse service 84.40 Lakes Gas Co. Gas 105.20 Leef Bros., Inc. Laundry 43.41 Joan Limvere Consulting services 771.25 MMUA Safety instruction 450.00 Plaza Hardware & Gifts Supplies, bldg. maint., truck exp. 92.03 Plowman's, Inc. Truck maint. 9.56 Quade Electric Plant supplies, bldg. maint. 47.35 Quill Corporation Office supplies 170.44 Road Machinery & Supplies Power operated equip. maint. 16.21 Sam's Tire Service Truck maint. 25.00 Simonson Lumber Bldg. maint., supplies 14.06 Sorenson Farm Supply Power operated equip. maint. 15.18 T & R Electric Supply Station equipment 520.00 The Texwipe Co. Office supplies 29.83 Tippecanoe Press, Inc. Office supplies 89.99 Twin City Testing Turbine Oil Testing 2,025.00 Welders Supply Co. Plant supplies 25.38 Yale cordage, Inc. Supplies 133.47 Petty Cash Meter deposit & interest 1,115.43 Mike Beasley I 159.00 Dave Bentz 21.10 Erickson Auto Sales 159.00 Eugene Gudmundson 106.50 Jeff Hartwig 22.40 Hemmah Freight 159.00 Gary Kotlarz 42.60 Mr. Movies 159.00 Katherine Quast 159.00 Heidi Sachs 21.20 Jean Zelinka s 159.00 i Hutch Utilities Due to Natural Gas Division 2,271.92 Labor UPS Freight charges 68.20 Hutchinson Telephone Co. Telephone 1,362.93 Great Plains Supply Bldg. maint., fuel oil system 854.41 maint. AMEX Life Assurance Employee insurance withheld 98.08 MN Benefit Assn. Employee insurance withheld 10.00 Honda of Hutchinson Equipment maint. 798.00 Petty Cash Supplies, meeting exp., truck maint 69.45 General Trading Co. Plant supplies, bldg. maint. 653.75 Sterling Electric Co. Plant supplies 116.31 Midwest Asphalt Corp. Fuel oil system maint. 88.29 Dakota Rail Lease 40.00 UPA Purchased Power 484,906.43 Coast to Coast Plant supplies, bldg. maint., 85.47 equip. maint. Medical Insurance MARCH - ELECTRIC MARCH PAYABLES - GAS 1,549.69 Putnam Fund Dist. Employee deferred comp withheld 150.00 ICMA Retirement Corp. Employee deferred comp withheld 100.00 PERA PERA withheld & expense 763.11 Citizens Bank & Trust Co. Federal tax, FICA withheld & exp 1,711.64 Continental Assurance Co. Life insurance 14.00 American Family Life Employee insurance withheld 22.10 Apollo Piping Supply Meter expense 34.91 Colonial Life & Accident Employee insurance withheld 36.50 Firstate Federal Savings Due to C/D Account 500.00 Hutch Utilities Employee utility bills withheld 445.00 PERA Employee insurance withheld 9.00 Hutch Utilities Payroll deposit plan 2,925.40 PERA PERA withheld & expense 761.17 Commissioner of Revenue State tax withheld 874.58 Citizens Bank & Trust Federal tax, FICA withheld & exp 1,704.89 Putnam Fund Dist. Employee deferred comp withheld 150.00 ICMA Retirement Corp. Employee deferred comp withheld 100.00 CNA Life insurance 63.64 Apollo Piping Supply Inv., mains 72.25 First National Bank Transfer to savings 100,000.00 Hutch Utilities Payroll deposit plan 2,840.87 Apollo Piping Supply Inv. 380.81 Perfection Corp. Inv. 1,930.50 Plexco - Fairfield Inv. 258.87 Phillips Driscopipe, Inc. Inv. 132.00 Ogston's, Inc. Inv. 4,700.10 North Star Gas Products Inv. 4,140.28 M.V. Markin & Co. Inv. 1,374.11 Apollo Piping Supply Inv. 86.97 American Meter Co. Meter inv. 73.51 Charles Bailly & Co. Audit 3,585.06 Hutch Util - Emp. Fund Employee fund withheld 15.00 Hutch Utilities Usage peak shaving plant 111.14 IBEW Local 949 Union dues withheld 128.00 Lakes Gas Co. Gas 130.32 MN Student Section Asnt. Mains & service exp 120.00 Norton McMurray Mfg. Maint. of mains 78.22 Vermeer Sales & Service Power operated equip. maint. 23.80 Hutch Utilities Due to Municipal Electric Plant 1,952.43 Labor MARCH - GAS Hutch Utilities Due to Municipal Electric Plant 15,246.89 March expense Circle Hutch Utility Purchased gas 279,012.03 Medical Insurance 344.96 There being no further business, a motion was made by Commissioner Beatty, seconded by Commissioner Lyke to adjourn the meeting at 3:30 p.m. ATTEST 1 E. Daggett, r sident Thomas B. Lyke, Secretary