04-24-1989 HUCMRegular Meeting
April 24, 1989
All Commissioners were present; also present were Mgr. Kadrmas,
Counsel P ochnow and Mayor Ackland.
President Daggett called the meeting to order at 1:00 p.m.
The minutes of March 27, 1989 regular meeting were reviewed. A
motion was made by Commissioner Cornell, seconded by Commissioner
Beatty to',accept the minutes as written. Motion was unanimously
carried.
The March i payables for both entities were
was made y Commissioner Beatty, seconded
to accept electric payables in the amount
gas payab�es in the amount of $389,249.02
payables book). Motion was unanimously c
discussed. A motion
by Commissioner Lyke
of $1,335,962.91 and
(detailed listing in
arried.
Mgr. Kadrmas presented a joint powers agreement for the MMUA Gas
Task Force defense group. After discussion, a motion was made
by Commis loner Cornell, seconded by Commissioner Richards to
approve tie joint powers agreement (copy attached). Motion
was unanimously carried.
A list of 1989 Utility charge rates for equipment and labor
(copy attached) was reviewed. A motion was made by Commissioner
Beatty, seconded by Commissioner Lyke to accept the 1989 Utility
charge rates. Motion was unanimously carried.
Discussedliadministrative director position.
and Cornell interviewed two applicants and
the position to Thomas Diemer. A motion we
Beatty, s e=nded by Commissioner Lyke authc
to enter iegotiations with Thomas Diemer fc
administr ative director.
Commissioners Daggett
recommended offering
s made by Commissioner
rizing Mgr. Kadrmas
r the position of
The 1989 year -to -date (ending March 31, 1989) financial and
budget reports were reviewed.
1
NO
Manager's Report:
1. Requested increasing the computer equipment budget by
$3,200 to purchase two Epson Equity le's. A motion was
made by Commissioner Beatty, seconded by Commissioner
Lyke to increase the computer equipment budget by $3,200
and to decrease the landscaping and parking lot budget
by $3,200. Motion was unanimously carried.
2. Updated the Commission on Circle -Hutch Utility Board.
3. President Daggett signed Minnesota Department of
Transportation relocation agreement - Highway 22 bridge.
Old Business:
In regard to the Simons /Dummer contract for deed on the natural
gas warehouse, Counsel Prochnow informed the Commission June 1
has been set to close.
The Commissioners table has been ordered.
New Business:
The May regular meeting will be held on May 30 at 1:00 p.m.
There being no further business, a motion was made by Commissioner
Cornell, seconded by Commissioner Beatty to adjourn the meeting
at 2:10 p.m. Motion was unanimously carried.
10 FAFZ.WJWfM
- Thomas B. -,N
r
ATTEST
rz,�
E. Daggett, (E ident
I
`U 16 1989
Agreement
and between th
AGREEMENT
made this ash day of A920 � 1989, by
e MINNESOTA MUNICIPAL UTILITIES ASSOCIATION, a
Minnesota non - profit corporation ("MMUA") and Austin, Circle
Pines, Hibbing, Hutchinson, New Ulm, Owatonna, Two Harbors and
Virginia (tree "Cities ").
WHEREAS, the Cities have determined to monitor, intervene
and participa a in certain rate cases involving determination of
the wholesale commodity and transmission rates charged by
Northern Natu al Gas Company ("NNGC"), which proceedings are
presently pending before the Federal Energy Regulatory
Commission (tie "FERC Proceedings ") and, in order to pursue such
FERC Proceed
other consult,
WHEREAS,
activities of
proceedings i
assessments f
therefrom,
ngs, have engaged legal counsel and may engage
nts; and
he Cities desire the MMUA to coordinate the
the Cities, to allocate the costs of such
the manner provided herein, to collect
om them and to pay the fees and costs arising
NOW, THEREFORE, in consideration of the mutual undertakings
of the partie .it is agreed, as follows:
1. The sties, and each of them, do hereby appoint the
MMUA to act i their place and stead with respect to the
following are s of activity:
a. ITo engage legal counsel and other consultants on
their behalf;
1
I
L-A
b. To allocate the costs and expenses of the
foregoing and such other related costs as may be necessary
and appropriate among the cities (as provided herein); and
C. To collect and receive payments from the Cities
for payme t to said parties and to MMUA on their behalf.
2. With respect to the FERC Proceedings, the Cities agree
that a total udget of Fifty Thousand ($50,000) is hereby
approved and ratified (the 'IFERC Proceeding Budget "). The
allocation of the FERC Proceedings Budget among the Cities, as
agreed to by each of them, is as hereinafter provided:
Name of City Percentage Dollar Amount
Austin 28.5% $14,274.22
Circle Pines 2.6% $ 1,284.60
Hibbing 4.4% $ 2,222.50
Hutchinson 12.3% $ 6,135.90
New Ulm 27.7% $13,861.76
Owatonna 18.9% $ 9,471.94
Two Harbors 3.2% $ 1,581.97
Virginia 2.3% $ 1,167.10
3. With respect to the services of MMUA as provided herein
and its reaso able costs and expenses related thereto, the
Cities agree that a total of Six Thousand Dollars ($6,000) for
the period ending December 31, 1989 (the "MMUA Budget ") is
hereby approved and ratified. Each of the Cities agrees that
the amounts die for the MMUA Budget shall be allocated equally
among them, each of the Cities' allocation equalling one -eight
(1/8) of the total.
F
4. Each of the Cities agrees to timely pay to the MMUA
invoices as r ndered by the MMUA in accordance with the FERC
Budget and th MMUA Budget and the allocation as set forth in
Sections 2 an 3 above. If, for any reason, any one of the
Cities shall of make the payment due the MMUA as agreed herein,
then the rema ning Cities shall be jointly and severally liable
to the MMUA. Payment shall be made to the MMUA not later than
thirty (30) days from receipt of invoice from MMUA.
5. Each of the Cities does hereby represent to MMUA that
its participation in the energy proceedings before FERC and the
execution of this Agreement have been duly authorized by its
governing body.
6. Each of the Cities does hereby represent to MMUA that
they have col ectively appointed and authorized Chuck Schmitz of
New Ulm and I an Larson of Hutchinson, as a committee of two, to
coordinate an communicate their instructions to their legal
counsel and c nsultants engaged in the FERC proceedings.
Therefore, th Cities do hereby authorize the MMUA to act in
accordance wi h the directions of that committee (or any other
committee sub equently appointed by them) and to rely upon the
instructions f that committee without further inquiry or
responsibilit on the part of MMUA.
7. The ities do hereby jointly and severally indemnify
and hold harmless the MMUA from any and all claims that may be
made against he MMUA by reason of its performance pursuant to
this Agreemen , including any costs and expenses of litigation
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and reason---- attorneys fees and costs, unless MMUA shall act
in violation of the specific terms of this Agreement or
otherwise, in the performance of the services described herein,
is grossly negligent or is guilty of willful misconduct.
8. This Agreement does not authorize the Cities (or any
one of them, or the committee appointed by the Cities) to act on
behalf of MMUA, to obligate MMUA or to utilize the name of MMUA
in any fashio without the prior, written consent of MMUA.
9. This Agreement may be terminated upon written notice by
i
MMUA or by the Cities (in which case the notice shall be
executed by each of the Cities). Said notice shall be effective
thirty (30) days following certified mailing, return receipt
requested, postage prepaid. Termination of this Agreement shall
not relieve the Cities of their obligations under this Agreement
for (a) costs and expenses incurred prior to the effective day
of the notice in the manner provided in Section 4 hereof or (b)
their covenants in Section 7 hereof.
Upon termination, MMUA shall pay all costs and expenses
incurred prior thereto, invoice the Cities for any amounts
remaining due or if, any surplus funds are held by MMUA, refund
such surplus to each City in accordance with the allocations
provided in Sections 2 and 3.
10. This Agreement may be signed in counterpart copies,
each of which, when taken together with all, shall be deemed one
agreement.
4
IN WITNES;
Agreement as <
t
i
WHEREOF, the parties have duly executed this
f the day and year first written above.
MINNE UNI P UTILITIES ASSOCIATION
C < --
,0.-G
By
Its
��
The CITY OF �r--y?
5
[-A
HUTCHINSON UTILITIES COMMISSION
Charge Rates
Equipment Rental Charges
All equipment, except air compressor, must have an operator.
Air Compressor
$20.00
per
hour
Trencher
20.00
per
hour (Plus 5c per foot)
Davis
Digz -A
1
Welder
40.00
per
hour
Tracto
& Backhoe
40.00
per
hour
Pneuma
opher
50.00
per
hour
(with
compressor)
Bucket
Truck #2
40.00
per
hour
Ladder
Truck #5
40.00
per
hour
Digger
#3
40.00
per
hour
Dump Tlluck
(Truck
40.00
per
hour
Fault
ocating Equipment
20.00
per
hour
Operat
r Labor for above
25.00
per
hour