12-28-1988 HUCMRegular Meeting
December 28, 1988
All Commissioners were present; also present were Mgr. Hakel,
Clarence Ka6rmas and Counsel Prochnow.
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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
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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.
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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.
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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.
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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.
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"lam- .» --C-•°
arence Kadrmas
HUTCHINSON UTILITIES
COMMISSION
Utiliti s Chairman