12-30-1996 HUCM5F
Regular Meeting
December 30, 1996
All Commissioners were present. Also present was Manager Kadrmas.
President Ward called the meeting to order at 3:00 p.m.
The minutes of November regular meeting were reviewed. Commissioner Carls
discussed the addition of wording of the $20,000 contribution in 1997 for the
Hutchinson Tree Board. A motion was made by Commissioner Carts, seconded by
Commissioner Cornell to approve the minutes as amended to paragraph seven of
the November Minutes, with the addition of this sentence, "with the funds coming
from the Energy Conservation Fund ". Motion was unanimously carried.
Counsel G. Barry Anderson arrived at 3:25 p.m.
The November payables were discussed. A motion was made by Commissioner
Cornell, seconded by Commissioner Carls to accept the payables in the amount of
$1,322,229.76 (detailed listing in payables book). Motion was unanimously carried.
The 1996 year -to -date (thru November) financial and budget reports were
reviewed. A motion was made by Commissioner Ackland, seconded by
Commissioner Gilmer to accept the financial and budget reports. Motion was
unanimously carried.
"Butch Wentworth ", Electric Superintendent and John Webster, Natural Gas
Superintendent, were present to update the Commission on work their departments
accomplished in 1996. Mgr. Kadrmas gave the power production report (reports
attached.)
The General Manager's Report was given next.
Presented a call for bids for 1997 Service Truck. A motion was made by
Commissioner Ackland, seconded by Commissioner Carls to advertise call
for bids.
Presented a call for bids for 15 KV Cable for Feeders 15 & 16. A motion was
made by Commissioner Cornell, seconded by Commissioner Gilmer to
advertise call for bids.
• Presented a call for bids for 15 KV Cable for Stock. A motion was made by
Commissioner Cornell, seconded by Commissioner Gilmer to advertise call
for bids.
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Counsel Anderson discussed the arbitration with Deltak and asked for a special closed
meeting granting him the authority in asking for a specific amount at the arbitration
hearing. After discussion, a motion was made by Commissioner Cornell, seconded by
Commissioner Carls to call a Special closed meeting for December 31, 1996 at 8:00 a.m.
to discuss the arbitration hearing. Counsel Anderson will notify the media.
Old Business: None
New Business:
President Ward presented Manager Kadrmas' performance review. After
discussion, a motion was made by Commissioner Cornell, seconded by
Commissioner Ackland to have Mgr. Kadrmas chose between a 4.5% salary
increase, or a one time bonus payment of $5,000 with no increase to his base
salary. Motion was unanimously carried.
Commissioner Ackland informed the Board that 3M is sending him to Wisconsin for
a four -month period for job - related issues, which will cause his absence from future
Commissioners Meetings. After discussion it was decided that meetings can be
changed to accommodate his schedule. Counsel Anderson will check with the City
Charter regarding policies for absences from Commissioners Meetings.
There being no further business, a motion was made by Commissioner Carls, seconded
by Commissioner Cornell to adjourn the meeting at 5:45 p.m. Motion was unanimously
carried.
ATTEST:
D glas Ward, President
Mike Carls, Secretary
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HUTCHINSON UTILITIES
COMMISSION
NATURAL GAS DIVISION
ANNUAL DEPARTMENT REVIEW
JOHN C. WEBSTER
NATURAL GAS SUPERINTENDENT
DECEMBER 30, 1996
I
NATURAL GAS DIVISION
1996
YEAR IN REVIEW
TOTAL 2" PLASTIC MAIN 5805 FT
TOTAL 4" PLASTIC MAIN 4750 FT
MAIN EXTENSIONS
1.
Lakewood Estates
950 ft. of 2" plastic main
500 ft. of 4" plastic main
2.
Sunset St./
1040 ft. of 2" plastic main
Cleveland Ave.
3.
McDonald Dr.
1160 ft. of 2" plastic main
4.
Floor to Ceiling
700 ft. of 2" plastic main
5.
Industrial Blvd./
1400 ft. of 4" plastic main
Eastgate Dr.
6.
Pleasant Acres Apts.
360 ft. of 2" plastic) main
1000 ft. of 4" plastic main
7.
1030 Hwy. 7 West
300 ft. of 2" plastic main
8.
California St./
1850 ft. of 4" plastic main
Texas Ave.
9.
Arizona St./
575 ft. of 2" plastic main
Carolina Ave.
10.
13th Ave. NW
720 ft. of 2" plastic main
TOTAL 2" PLASTIC MAIN 5805 FT
TOTAL 4" PLASTIC MAIN 4750 FT
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DISTRIBUTION MAINTENANCE
1. Ridgewater College Rebuilt meter set. Regulate
upstream, TC meter, downsize.
Meets DOT requirements.
Original meter set was not
designed to compensate for
temperature. Also assumed that
the incoming system pressure
was absolutely constant. Meter
set did not contain a relief valve
to protect the downstream
system, the college.
2. Peak Shave Facility Installation of LP pumping
system, pneumatic valve
operators, upgrading tanker
unloading station, fire control
system, replacement of tank
relief valves.
3. Border Station #1 Replacement of 10" emergency
station outlet valve. Required a
contractor to perform a 10" tap
and stop, entire town was
operated on a 4" temporary
bypass for approximately 6
hours.
4. Metering Facilities Approximately 16 meter sets
were built or rebuilt in 1996. All
meter sets that require a meter
larger than a 425 cfh diaphragm
meter receive a fully welded set.
f
5. Country Kitchen This meter set was rebuilt due to
several reasons. The contractor
required that the service line be
relocated, the meter set was
originally fabricated with screwed
fittings, and the original meter set
did not compensate for the
flowing gas temperature.
6. Burns Manor This meter set was rebuilt for
several reasons. The original
meter set was not designed to
compensate for the temperature
of the gas. The meter set did not
meet code, relief valves were not
in place. The original set was
fabricated with screwed fittings,
potentials for leaks.
Department Of Transportation Mandated Maintenance Programs
The following DOT mandated operations and maintenance programs were
completed in 1996 by the natural gas department;
192.465 External Corrosion Control - Monitoring
192.609 Class Location Study
192.625 Odorization of Natural Gas
192.705 Transmission Lines - Patrolling
192.706 Transmission Lines - Leakage Surveys
192.721 Distribution Systems - Patrolling
t1
f'
LA
192. 723 Distribution Systems - Leakage Surveys
- Business District
- Distribution System
192.739 Inspection and Testing of Pressure Limiting and
Regulating Stations
192.741 Inspection and Testing of Telemetering and
Recording Stations
192.743 Testing of Relief Valves
192.745 Valve Maintenance - Transmission System
192.747 Valve Maintenance - Distribution System
192.459 External Corrosion Control
192.501 System Pressure Test Requirements
Calibration and Testing of Diaphragm and Rotary Meters
The Natural Gas Dept. at Hutchinson Utilities Commission currently
performs all residential through industrial meter testing in- house. Prior to
1993 all meters larger than residential size were intested and calibrated
by an outside firm.
The Natural Gas Department tested the following quantity, by class, of
meters in 1996:
Residential (Diaphragm)
Commercial (Diaphragm)
Commercial /Industrial
(Rotary)
360 meters
60 meters
70 meters
Non - Temperature Compensated Metering
At this time, 12 meter sets remain throughout the natural gas system that
were originally fabricated to not compensate for gas temperature. Gas
temperature is predominately colder than 60° F., causing the loss of
revenue to Hutchinson Utilities. The Natural Gas Dept. is currently
rebuilding non - compensated meter sets as time permits. Larger accounts
are given priority.
Energy Conservation Grant Program
The 1995 -96 and 1996 -97 Energy Conservation Grant Programs were
managed by the Natural Gas Superintendent. These programs issued
approximately $55,000 in grants in 1995 -96 and will issue approximately
$70,000 in grants in 1996 -97.
Midwest Regional Gas Task Force Association
The MRGTFA is an alliance of small Minnesota and Wisconsin natural
gas utilities. Quarterly meetings are conducted to protect the interests of
Hutchinson Utilities, it's generation facilities, and its customers. The rate
case filed by Northern Natural Gas in 1995 was settled in the late fall of
1996. The outcome was that NNG was to return to the original rates that
were in place before the rate case was originally filed. This resulted is a
tremendous cost savings to Hutchinson Utilities. However, Northern does
have the right to re -file before March of 1998.
NISB (New, Innovative Solutions for Business)
Northern Natural Gas began initiating a revenue process redesign in
1996. Northern began this process by involving their customers, both
large and small natural gas utilities, natural gas marketers, producers,.
and end users.
Several "brainstorming" meetings were held in Kansas City with the end
result the nomination of a small board of advisors, the NISB board. The
Natural Gas Superintendent from Hutchinson Utilities was elected to
I
represent all of the small natural gas utilities on Northern Natural's
system.
Monthly teleconferences are held amongst all of the members on the
NISB board to ensure that the best interests of all involved are served.
Training Attendance - Natural Gas Department
Ron Swenson Appalachian Underground Corrosion
Short Course
Wayne Barreth Appalachian Underground Corrosion
Short Course
John Webster MNOPS 1995 Fall Conference
In -house training provided to the Natural Gas Department by
Superintendent.
POWER PRODUCTION DEPARTMENT
1996
Year In Review
UNIT #1- Completed its second season of operation on October 25th. It has operated for 3,808 hours
and produced 134,709 Mega -watts of electricity.
This winter (96/97), the LM6000 will be disassembled and updated with new High Pressure, 2 "d Stage
Blades. There may be additional items replaced (nozzle assemblies, bushings, combustor, etc.),
depending upon what's found once engine is disassembled. Also, plans are to upgrade the units fuel
system.
All of the above work will be -preformed by Hutchinson Utility personnel, under the supervision of
Stewart & Stevenson and General Electric field engineers.
UNIT #1, 40 GPM DEMINERALIZER SYSTEM (WATER INJECTION) - A Decarbonator was recently
installed. Although testing won't be completed until this coming spring, the decarbonator is designed
to remove the Carbon Dioxide from the city water and in return, the demineralizers will produce larger
quantities of water (meet or exceed the original installers specifications). If all goes as planned, the
40 GPM System should not only handle the Water Injection, but also Plant # 2's Boiler Water Make-
up, thus eliminating the need for the 10 GPM R &O, Demineralizer Systems. The 10 GPM system can
then be sold. HUC should recoup their costs for the - Decerbonator -installation. HUC should then #have
half the operation & maintenance expenses, plus see a significant decrease in chemical costs.
UNIT #8, GAS TURBINE, MAJOR OVERHAUL - Was started in February 1996. As of now, the unit
has been disassembled and assembled three (3) times. The unit is still not operational as per
manufacturers specifications.
The contractor has exhausted all ideas of correcting the problem and has left the site. The parts
vendor insists that all parts are correct. We believe the problem is the angle of degrees associated
with the newly installed INLET GUIDE VANES. Hutch Utilities has ordered a new set of I.G.V.s from
General Electric. Once received (January 1997), General Electric will oversee HUC personnel install
and conduct run -up tests. The contractor and vendor will be invited to witness the installation and run
tests.
ONGOING:
- Maintenance and Preventative maintenance.
- Training programs for Plant Operators and System Controllers.
Walter Hombach
Power Production Superintendent
ecember 26, 1996
C: Clarence Kadrmas
HUC- Commissioners
ADVERTISEMENT FOR BIDS
FOR
1997 SERVICE TRUCK
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 10:00 A. -M. on the 14th day-of January 1997, and will
publicly open and read aloud such Bids on the following work and equipment:
"1997 Service Truck"
Proposals shall be properly endorsed and delivered in an envelope marked, "1997
Service Truck "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.
No Bidder may withdraw -his Bid or P -roposal 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 Contracts) for the furnishing of said equipment.
The work shall be started within ten (10) days after award of Contract(s).
The Hutchinson Utilities Commission of the City of Hutchinson,
Hutchinson, Minnesota reserves the right to reject any and all bids.
By
Presid t
Date /,0?- - ?[D
ATTESTED
By Ih `
Secretary
Date 12-/3
i
ADVERTISEMENT FOR BIDS
FOR
15 KV CABLE FOR FEEDERS 15 AND 16
MUNICIPAL ELECTRIC UTILITIES
HUTCHINSONY MINNESOTA
Notice is hereby given that the Hutchinson Utilities Commission of
the City of Hutchinson, Hutchinson, Minnesota, hereinafter referred to as the
Owner, will receive sealed Bids at the Hutchinson utilities office until 10 :30 a.m.
on the 14' day of January 1997, and will publicly open and read aloud such Bids
on the following work and equipment:
"15KV CABLE FOR FEEDERS 15 AND 16"
Proposals shall be properly endorsed and delivered in an envelope
marked, 15 KV CABLE FOR FEEDERS 15 AND 16" and shall, be addressed to:
Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson,
Minnesota 5535Q.
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, Hutchinson,
Minnesota, in the amount of five per -cent {5 %) of the Bid, -as a guarantee that
the Bidder will enter into the proposed 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 ten (10) 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 a# Hutchinson,
Hutchinson, Minnesota reserves the right to reject any and all bids.
By
Preside
Date �� ��� 7Co
ATTESTED
By /n --
Secretary
Date 12.
Ij
ADVERTISEMENT FOR B4{DS
FOR
15 KV CABLE FOR STOCK
MUNICIPAL ELECTRIC UTILITIES
HUTCHINSON, WNNESOTA
Notice is hereby liven that the Hutchinson Utilities Commission of
the City of Hutchinson, Hutchinson, Minnesota, hereinafter referred to as the
Owner, will receive -sealed Bids at the Hutchinson A#tA ies -office until 11:-00 a.-m.
on the 14' day of January 1997, and will publicly open and read aloud such Bids
on the following work and - equiprent:
15 KV CABLE FOR STOCK"
Proposals shall be properly endorsed and delivered in an envelope
marked, 15 KV CABLE FOR STOCK" and shall be addressed to: Hutchinson
Utilities Commission of the City of Hutchinson, 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 Proposat 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, Hutchinson,
Minnesota, in the amount of five per cent (5 %) of the Bid, as a guarantee that
the Bidder will enter into the proposed Contract.
No Bidder -may withdraw his Bid or Proposal fora 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 ten (1 -0) bays after award of
Contract(s).
Specifications and Plans are available at the Office of the Hutchinson
Utilities, 225 Michigan Street, Hutchinson, Minnesota 55350.
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 &A 0/J)'7-"J
IL- '4�
Presi nt
Date /oil- 3/" f6
ATTESTED
By
Secretary
Date 12 ` - / � / Ag
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Recommendations for 1997 Service Truck - Chassis
Following are my recommendations regarding the bids on the "1997 Service Truck"
Cab & Chassis
Myron Wigen Motor Co. bid $21,435.00
However they can not supply two items of the specifications:
A "limited slip differential" that we have on the present service vehicle and which
I feel is an economical alternative to 4WD due to the weight of the truck.
2 A "towing package" which in my understanding provides a wiring harness for
electric brakes and trailer lights, heavy duty flasher and etc.
Plowman's Inc bid $21,879.00
Plowman's took no exceptions to any line item of the specifications.
It is my recommendation that we accept Plowman's bid.
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Recommendations for the 1997 Service Truck - Body
Following are my recommendations regarding the bids on the "1997 Service Truck"
Service Body and Aerial Device
We received five bids. Following are the companies that met all specifications and
their bids:
ABM Equipment and Supply Inc.
Truck Utilities Mfg. Co.
Companies that did not meet specifications:
Altec Industries Inc.
Dueco Inc.
Reach Equipment
It is my recommendation that we accept ABM's bid.
$35,281.00
$36,959.00
$34,000.00
$37,645.00
$42,558.00
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