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12-28-1988 HUCMRegular Meeting December 28, 1988 All Commissioners were present; also present were Mgr. Hakel, Clarence Ka6rmas and Counsel Prochnow. i President Daggett called the meeting to order at 1:00 p.m. The minutesllof November 28, 1988 regular meeting were reviewed. A motion wa made by Commissioner Lyke, seconded by Commissioner Cornell to accept the minutes as written. Motion was unanimously carried. The November payables for both entities were discussed. A motion was made by'Commissioner Cornell, seconded by Commissioner Lyke to accept the electric payables in the amount of $1,436,534.06 and gas pay,�bles in the amount of $359,159.51 (detailed listing in payables book). Motion was unanimously carried. A list of u collectible accounts was discussed. A motion was made by Commissioner Beatty, seconded by Commissioner Richards authorizing management to charge -off electric in the amount of $804.23 and gas in the amount of $140.37, totaling $944.60, detailed listing on pages 1436E and 673G of the December general journal. Motion was unanimously carried. Specificati ns for a cargo van (gas division vehicle) and a z ton, two wheel dive vehicle (manager's vehicle) were discussed. A motion was made by Commissioner Lyke, seconded by Commissioner Beatty to accept the specifications. Motion was unanimously carried. The policy on purchasing was discussed. A motion was made by Commissioner Beatty, seconded by Commissioner Richards to amend the policy on purchasing (amended copy attached and in policy handbook). i Motion was unanimously carried. "Butch" Wen worth, Wally Hombach and Ivan Larson reported on work comple ed in 1988. Tony Rude or United Power Association was welcomed to the meeting. The Fourth Amendment Agreement to the Integrated Transmission Agreement S pplemental Agreement was discussed. Certain conditions have not be n received from Northern States Power and Co- operative Power. Thi3 amendment would grant a six month extension to obtain the 3ame. A motion was made by Commissioner Lyke, seconded by Commissi ner Beatty to defer action on the extension enabling the Commission to further study the situation. Motion was unanimouslylcarried. Mgr. Hakel presented the November financial statements. A motion was made by Commissioner Beatty, seconded by Commissioner Cornell to accept the financial statements. Motion was unanimously carried. Manager's Report: 1. The results of the wellness program are: 29 will participate 12 will not participate The percentage of participation is 70 °b. 2. Discussed unit #9. A preventative maintenance manual will be assembled by staff. John Nixon will review the manual and will hold classes for our mechanics on unit #9 maintenance some time in the future. 3. A tentative agreement has been reached with Dakota Rail. After discussion, the Commission instructed Clarence Kadrmas to continue working with Dakota Rail and McLeod County Rail Authority. Old Business: Associated Consultants contract was reviewed. After discussion, a motion was made by Commissioner Lyke, seconded by Commissioner Beatty to execute the contract and authorizations. Motion was unanimously carried. The employment contract for Clarence Kadrmas was discussed. A motion was made by Commissioner Cornell, seconded by Commissioner Lyke to accept the employment contract as amended. Motion was unanimously carried. New Business: Clarence Kadrmas presented membership dues for National Society of Professional Engineers in the amount of $170. After discussion, a motion was made by Commissioner Lyke, seconded by Commissioner Cornell to pay the membership dues in the amount of $170. Motion was unanimously carried. There being no further business, the meepig,� adjourned at 3:53 p.m. omas B. Lyke, Sec etary ATTEST E. Daggett, Pr W- ent HUTCHINSON UTILITIES COMMISSION Policy on Purchasing State Statute 471:345 Hutchinson Ut lities Commission hereby adopts a general policy on the purchasing of,equipment, supplies and services. All purchasesishall require a written requisition and purchase order number given by the utility office. No employee shall purchase any item without upervisor permission. Emergency situations may require a deviation from this policy to insure electric and /or natural gas services to the customers of the Hutchinson Utilities. Joint purchas- ing of materials, supplies and services shall be considered with other departments only when net economic benefits can be seen. When a tie exists between low bids, preference will be given to a local supplier. For purchasesjwhen the estimate is more than $15,000: 1. The Hutchinson Utilities Commission will request permission to advertise for bids. 2. Specifica ions shall be made available to all prospective bidders. 3. Bids will be opened at a public bid opening. Date will be set in the advertise ent for bids. 4. The staff llwill review bids and recommend to the Hutchinson Utili- ties Commission to accept the lowest responsible bidder meeting speci- fications. 5. Hutchinso Utilities Commission will enter into a contract with the lowest bi der. For purchaseslbetween $10,000 and $15,000: 1. The Hutch informal quote results. 2. Staff wil For purchases inson Utilities Commission staff will solicit written, tions from at least three (3) suppliers and tabulate the � recommend acceptance of the lowest quote. between $5,000 and $10,000: 1. The Hutchinson Utilities Commission staff will informal quot tions from at least two (2) suppliers results. 2. Staff wil [1 solicit written, and tabulate the recommend acceptance of the lowest quote. For purchases lless than $5,000: 1. The staff will solicit informal quotations from at least two (2) sources. 2. The General Manager and Administrative Director shall have the authority or delegate the authority to authorize acceptance of the lowest bidder. I I EMPLOYMENT CONTRACT IS AGREEMENT is made this o�� � day of December, 1988 by andlbetween the Hutchinson Utilities Commission (hereinafter "HUC ") and Clarence Kadrmas (hereinafter "Kadrmas ") on the following terms and conditions: EREAS, HUC has retained the services of Kadrmas for the past three months as a management consultant and, WHEREAS, HUC desires to employ Kadrmas as the acting General Manahger for the Hutchinson Utilities; and, EREAS, both parties desire to have the employment agreement reduced to writing. NOW, THEREFORE, in mutual consideration hereof, the parties make) the following agreement: 1. DUTIES: Kadrmas shall be employed as General Manager for the Hutchinson Utilities. He shall have responsibility to carry out the day to day activities of the Utility business, and such other duties as HUC shall deem as the responsibility of the General Ma ager. Kadrmas shall be responsible to HUC for all ac ivities performed on behalf of the Hutchinson Utilities. 2. TE M: This agreement of employment shall commence De ember 26, 1988 and terminate December 31, 1989, un ess sooner terminated by the provisions hereinbelow se forth. 3. CO PENSATION: The salary for the position of General Ma ager for the year 1989 shall be $50,800. In ad ition Kadrmas will be provided a vehicle by HUC to be used for business purposes only, including travel to an from work. �J I 4. ADDITIONAL BENEFITS: In addition to the compensation referred to in Paragraph 3, Kadrmas shall be entitled to such other benefits as provided to Hutchinson Utility Employees, including but not limited to, c mprehensive medical coverage, long term disability coverage, accidental death coverage, vacation time, and a life insurance policy comparable to that offered to other HUC employees. 5. ADDITIONAL CONDITIONS: Kadrmas agrees that his position as General Manager of the Hutchinson Utilities stall be his sole employment during normal business hours. Kadrmas agrees he will not be involved in any consulting or contracting work at any time during the term of this agreement. HUC agrees Kadrmas may utilize his skills during non - business hours for casual work in the electrical field or other ventures. However, under no circumstances will Kadrmas allow this casual work to be conducted during normal business h�nflict urs, nor shall he allow such work to create a c of interest with his employment by HUC. 6. TERMINATION: This contract may be terminated by HUC u der the following circumstances: a b. C, d. e, f, Gross misconduct by Kadrmas in the performance of his duties as General Manager. Disability that renders Kadrmas unable to perform substantially all of his duties for more than (90) days. The death of Kadrmas. The violations of any other terms or conditions of this agreement. Mutual consent of the parties. Should HUC deem it in the best interest of the Hutchinson Utilities to terminate this agreement for reasons other than those listed under paragraphs a through a above. In such instance HUC shall provide Kadrmas a (30) day notice. Further, HUC shall provide a severance pay to Kadrmas the balance of the payment due pursuant to this agreement. Such payments shall be in the same amounts and at the same times as if Kadrmas continued his employ through the end of this agreement. There will be no severance payments for termination under paragraphs a through e above. 61 rl J 1 7. R ;NEWAL: This agreement can be renewed, extended, m dified or amended only in writing and executed by both parties. 8. B ;LADING EFFECT: This agreement shall be binding upon t e heirs, executors and assigns of the parties. Wherefore, we have hereunto set our hands the year and date first above mentioned. 3 r � "lam- .» --C-•° arence Kadrmas HUTCHINSON UTILITIES COMMISSION Utiliti s Chairman