04-29-1996 HUCMy�
Regular Meeting
April 29, 1996
Commissioners Cornell, Gilmer, Ward and Ackland were present; Commissioner
Carls was absent; also present were Mgr. Kadrmas and Counsel Prochnow.
President Cornell called the meeting to order at 3:00 p.m.
The minutes of March 25, 1996 regular meeting were reviewed. A motion was
made by Commissioner Ackland, seconded by Commissioner Gilmer to approve the
minutes as written. Motion was unanimously carried.
Discussed bid for replacement compressor blades for G.E. MS 3002 (unit #8) which
was awarded to Lovegreen Turbine Services at the March 25, 1996 meeting.
These blades do not need to be replaced. A motion was made by Commissioner
Gilmer, seconded by Commissioner Ackland to cancel the bid for replacement
compressor blades which was awarded to Lovegreen Turbine Services in the
amount of $93,390. Motion was unanimously carried.
Discussed requisition for second stage high pressure turbine blades for unit #1
which was approved at the March 25, 1996 meeting. General Electric has stated
that the second stage blades on our unit may last 25,000 hours and do not need to
be replaced at this time. A motion was made by Commissioner Gilmer, seconded
by Commissioner Ackland to cancel the requisition for second stage high pressure
turbine blades for unit #1 to General Electric in the amount of $71,000. Motion was
unanimously carried.
The March payables were discussed. A motion was made by Commissioner
Ackland, seconded by Commissioner Gilmer to accept the March payables in the
amount of $1,867,155.34 (detailed listing in payables book). Motion was
unanimously carried.
Irene Vorbeck was at the meeting requesting gas service be installed at her
residence. Mrs. Vorbeck lives outside of Hutchinson city limits on Jefferson Street
South. Hutchinson Utilities has an existing main which extends outside of
Hutchinson city limits on Jefferson Street South. The Commission informed Irene
Vorbeck to contact the City Council to permit service outside the city limits without
annexation. The City Council had indicated to the Commission that providing city
services should be available to only city residents.
The 1996 year -to -date (thru March) financial and budget reports were reviewed.
A motion was made by Commissioner Ward, seconded by Commissioner Gilmer to
accept the financial and budget reports. Motion was unanimously carried.
Discussed suggested modifications to the electric power adjustment (copy attached). After
discussion, a motion was made by Commissioner Ward, seconded by Commissioner
Ackland to approve the modification to the electric power adjustment to be effective June
1, 1996 and to send a copy to the city council for action. Motion was unanimously carried.
Discussed the suggested gas rate increase of 3% for all gas rate classes. After
discussion, a motion was made by Commissioner Ackland, seconded by Commissioner
Gilmer to approve the 3% increase for all gas rate classes to be effective June 1, 1996 and
to send a copy to the city council for action. Motion was unanimously carried.
Mgr. Kadrmas presented a request for bids for Peak Shave facility upgrade - phase I. After
discussion, a motion was made by Commissioner Ackland, seconded by Commissioner
Ward to advertise for bids for Peak Shave facility upgrade - phase I. Motion was
unanimously carried.
Manager's Report:
1. Discussed Hutchinson Technology (education facility building) service territory
issue. Public Utilities Commission stated Hutchinson Utilities should cease serving
the facility or else compensate McLeod Coop. The matter will go to an
administrative law hearing.
Old Business: None
New Business:
The May regular meeting will be held on May 28, 1996 at 3:00 p.m.
There being no further business, a motion was made by Commissioner Ward, seconded
by Commissioner Ackland to adjourn the meeting at 4:20 p.m. Motion was unanimously
carried.
ATTEST ��.....•� -%'�
G. P. Cornell, President
Roger Gilmer, Secretary
MEMORANDUM
To: Commission Board
From: Clarence L Kadrmas
General Manager
Subject: Suggested Modifications to Electric Power Adjustment
Date: April 26, 1996
As discussed previously, this is the suggested modifications to the electric power
adjustment to be effective June 1, 1996.
POWER COST ADJUSTMENT
(Electric)
Power Cost Adjustment is based on the combined costs of fuel, lubricants, payroll
adjustment, transmission maintenance *, purchased power from outside suppliers, a fixed
amount of $125,000 per month for payment of the 1993 plant addition utility revenue
bond active until December 31, 2005 and maintenance of generating units*'" used in the
Hutchinson electrical generating stations.
If the above combined costs have increased or decrease, each monthly electrical bill shall
be increased or decreased from the base of $.0345 per KWH by $.00011 per KWH for
each $.00010 per KWH.
Computations of power adjustment shall be made monthly. The resultant adjustment, if
any, shall be applicable for the month.
*Maintenance is defined as the average monthly cost for the previous six months.
* *Maintenance is defined as the average monthly cost for the previous half year that
exceeds $14,000 per month.
MEMORANDUM
To: Commission Board
From: Clarence L Kadrmas
General Manager
Subject: Gas Rate Increase
Date: April 26, 1996
As discussed previously, the suggested gas rate increase is 3% for all rate classes. This
would be effective June 1, 1996.
JuL 2 4 1996
CITY COUNCIL MINUTES - MAY 14, 1996
(a) CONSIDERATION OF REVISED CEMETERY POLICIES AND PRICE
Utilities Manager Clarence Kadrmas requested a three percent gas rate increase to be
effective June 1, 1996. He reported that the last change in City rate was 11 years ago,
and it was a decrease. Mr. Kadrmas commented that Hutchinson's current rate of
$3.03 per thousand cubic feet is well below the state average of $4.70. He stated
that although the amount of gas sold has stayed the same, the fixed costs have
increased. The rate increase is expected to generate $200,000 in revenue.
Following discussion, Council Member Mlinar moved to approve the gas rate
increase of 3% and to adopt Resolution No. 10682. Motion seconded by Council
Member Peterson and unanimously carried.
(e) CONSIDERATION OF REQUEST TO TEMPORARILY CLOSE HUTCHINSON
MUNICIPAL AIRPORT DURING EVENING HOURS ON AUGUST 16-20,1996
FOR DOOLEY AIR SHOW AT MCLEOD COUNTY FAIR
Following discussion, Council Member Peterson moved to approve the request,
seconded by Council Member Craig and unanimously carried.
4
STRUCTURE
Engineer Rodeberg commented on the changes to the cemetery policy and prices and
recommended approval of the revised policies and price structure.
Following discussion, Council Member Mlinar moved to approve the revised
cemetery policies and price structure, seconded by Council Member Peterson and
unanimously carried.
(b)
CONSIDERATION OF MERGER OF TRIAX MIDWEST ASSOCIATES AND DD
CABLE (MIDWEST CABLEVISION)
Following discussion, Council Member Mlinar moved to authorize the retention of
Attorney Thomas D. Creighton to review the cable franchise transfer. Motion
seconded by Council Member Peterson and unanimously carried.
(c)
CONSIDERATION OF MODIFYING ELECTRIC POWER ADJUSTMENT
IN ELECTRIC RATE, EFFECTIVE JUNE 1, 1996
Clarence Kadrmas, Hutchinson Utilities Manager, reported that the lease with a North
/month lease
Dakota power plant had expired. Therefore, the $125,000 payment
would be adjusted as payment toward the principal and interest on the new bond.
It was reported that this adjustment will have no impact on the customers and will not
change the current electrical cost.
Following discussion, Council Member Craig moved to approve the electric power
adjustment and to adopt Resolution No. 10681. Motion seconded by Council
Member Peterson and unanimously carried.
(d)
CONSIDERATION OF ADJUSTING GAS RATE BY THREE PERCENT
ACROSS THE BOARD, EFFECTIVE JUNE 1, 1996
Utilities Manager Clarence Kadrmas requested a three percent gas rate increase to be
effective June 1, 1996. He reported that the last change in City rate was 11 years ago,
and it was a decrease. Mr. Kadrmas commented that Hutchinson's current rate of
$3.03 per thousand cubic feet is well below the state average of $4.70. He stated
that although the amount of gas sold has stayed the same, the fixed costs have
increased. The rate increase is expected to generate $200,000 in revenue.
Following discussion, Council Member Mlinar moved to approve the gas rate
increase of 3% and to adopt Resolution No. 10682. Motion seconded by Council
Member Peterson and unanimously carried.
(e) CONSIDERATION OF REQUEST TO TEMPORARILY CLOSE HUTCHINSON
MUNICIPAL AIRPORT DURING EVENING HOURS ON AUGUST 16-20,1996
FOR DOOLEY AIR SHOW AT MCLEOD COUNTY FAIR
Following discussion, Council Member Peterson moved to approve the request,
seconded by Council Member Craig and unanimously carried.
4
RESOLUTION NO. 10681
THIS RESOLUTION is made and entered into this 14th day of May,
1996 by the Hutchinson City Council.
RECITALS:
1. The Hutchinson Utilities Commission has requested an
adjustment in the electric power rates charged by the City of
Hutchinson;
2. It appeared to the City Council for the City of Hutchinson
that such adjustment is justified and in the best interests of the
residents of the City of Hutchinson;
NOW THEREFORE, BE IT RESOLVED that the City Council for the
City of Hutchinson does hereby approve the electric power
adjustment requested by the Hutchinson Utilities Commission and
authorizes the Hutchinson Utilities Commission to adjust rates in
accordance with the recommendation of the Hutchinson Utilities
Commission.
Attest:
`�a �- Gary D. Plot
City Administrator
CITY OF HUTCHIN ON
By:
ar in Tor erso -
Mayor
RESOLUTION NO. 10682
THIS RESOLUTION is made and entered into this 14th day of May,
1996 by the Hutchinson City Council.
RECITALS:
1. The Hutchinson Utilities Commission has requested an
adjustment in the gas rates charged by the City of Hutchinson;
2. It appeared to the City Council for the City of Hutchinson
that such adjustment is justified and in the best interests of the
residents of the City of Hutchinson;
NOW THEREFORE, BE IT RESOLVED by the City Council for the City
of Hutchinson that, based upon the recommendation of the Hutchinson
Utilities Commission and Hutchinson Utilities Manager Clarence
Kadrmas, that the gas rate increase of three percent (3%) be
effective immediately with implementation of said rate increase to
be governed by the usual and customary procedures of the Hutchinson
Utilities Commission.
Attest:
CA
Gary DIJP16tzLj
City Administrator
CITY OF HUTCHIIJSON
By:
Marlin To n
Mayor
ADVERTISEMENT FOR BIDS
FOR
PEAK SHAVE FACILITY UPGRADE - PHASE I
HUTCHINSON UTILITIES COMMISSION
HUTCHINSON, MINNESOTA
Notice is hereby given that the Hutchinson Utilities Commission of the City of
Hutchinson, Minnesota, hereinafter referred to as the Owner, will receive sealed Bids at
the Hutchinson Utilities office until 1:00 p.m. on the 15th day of May, 1996, and will publicly
open and read aloud such Bids on the following work and equipment:
"PEAK SHAVE FACILITY UPGRADE - PHASE I"
Proposals shall be properly endorsed and delivered in an envelope marked, "PEAK
SHAVE FACILITY UPGRADE - PHASE I" and shall be addressed to: Hutchinson Utilities
Commission of the City of Hutchinson, 225 Michigan Street, Hutchinson, Minnesota 55350.
All proposals shall be submitted in duplicate on the Bidder's own letterhead in
facsimile of the Proposal Form enclosed in the Specifications, or by utilizing the Proposal
Form enclosed with the Specifications by typing the official name of the Bidder at the top
of the form.
Each Proposal shall be accompanied by a Bid Bond, made payable to the
Hutchinson Utilities Commission of the City of Hutchinson, Minnesota, in the amount of five
percent (5 %) of the Bid, as a guarantee that the Bidder will enter into the proposed
Contract and provide a Performance Bond after his Bid shall have been accepted.
The successful Bidder shall furnish a Performance Bond in an amount equal to one
hundred percent (100 %) of the Contract price to the Owner prior to the approval of the
Contract.
No Bidder may withdraw his Bid or Proposal for a period of thirty (30) days after
date of opening of Bids.
At the aforementioned time and place, or at such later time and place as the Owner
then may fix, the Owner will act upon Proposals received and with its sole discretion may
award Contract(s) for the furnishing of said equipment.
The work shall be started within thirty (30) days after award of Contract(s).
Specifications and Plans are available at the Office of the Hutchinson Utilities, 225
Michigan Street, Hutchinson, Minnesota 55350. The Hutchinson Utilities Commission of
the City of Hutchinson, Minnesota, reserves the right to reject any and all bids.
By -/,) P �
G. P. Cornell, President
Date /-/- 2, z — ?6
ATTESTED
By
Roger Gilmer, Secretary
Date I -a9--` %(o
u