06-29-2016 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, June 29, 2016
Call to order — 3:00 p.m.
President Luhring called the meeting to order. Members present: President Donna
Luhring; Vice President Monty Morrow; Secretary Mark Girard; Commissioner Anthony
Hanson; Commissioner Robert Wendorff; Attorney Marc Sebora; General Manager
Jeremy Carter.
Conflict of Interest
None
President Luhring requested Agenda Item 8g, 2015 CIP Update, be moved up. Nick
Nelson presented the 2015 Conservation Improvement Plan which is done on an annual
basis. (CIP update attached.)
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
A motion was made by Vice President Morrow, seconded by Commissioner
Hanson to approve the Consent Agenda. Motion was unanimously carried.
3. Approve Financial Statements
Jared Martig presented the financial statements. After discussion, a motion was
made by Secretary Girard, seconded by Commissioner Wendorff to approve the
financial statements. Motion was unanimously carried.
4. Open Forum
5. Communication
a. City Administrator — Matthew Jaunich
L The City is in the process of closing a deal on an 87 unit apartment
complex by Ridgewater College.
ii. Negotiations continue for the hotel being built on Highway 7.
iii. Work on the aquatic center has started.
b. Divisions
L Randy Blake —
1. Attended Midwest Turbine Users Group meeting a couple weeks ago.
ii. Dave Hunstad —
1. Working on the new aquatic center this week.
2. Continuing to work on road projects.
3. The second outage of the year occurred on Monday night on the
Northwest part of town.
iii. Jared Martig -
1. Nothing to report.
iv. John Webster -
1. Working on the Lafayette interconnect project.
2. Minnesota Municipal Gas Association is looking at a potential 30 year
prepay deal for natural gas. It would not impact any of the base load gas
HUC has already purchased.
v. Brenda Ewing —
1. Nothing to report.
c. Legal — Attorney Sebora
i. Nothing to report.
d. General Manager — Jeremy Carter
i. Continuing to work on the CIP information.
ii. Meeting tomorrow with the director of member services of MRES. She is
visiting other utilities as well to discuss any concerns and what areas MRES
can help with.
iii. Attended Clean Power stakeholder meeting this week. We discussed the
rate based modeling, how the emissions credit would work and how the
market would be established.
iv. Preparing for HUC Union negotiations.
6. Policies
a. Review Policies
i. Emergency Leave
ii. Military Leave
iii. Establishing a New Electric/Natural Gas Account
No changes were recommended.
b. Approve Changes
i. Unpaid Extended Leave of Absence
The changes recommended were made for clarification.
ii. Family Death
The changes recommended were made for clarification.
iii. Hutchinson Utilities Commission
The changes recommended were made for clarification.
iv. Delegation of Authority
The changes recommended were made for clarification.
A motion was made by Commissioner Hanson, seconded by Vice President
Morrow to approve the changes to Unpaid Extended Leave of Absence,
2
Family Death, Hutchinson Utilities Commission, and Delegation of Authority.
Motion was unanimously carried. (Changes attached.)
7. Unfinished Business
a. Update on Pack Gas Discussions
GM Carter explained they received a summary report from the City of New Ulm
that was prepared by the consultant New Ulm hired. We requested from New
Ulm that they provide the detailed calculations behind the summary report
which we have not received yet. Attorney Sebora has followed up with their
attorney to get this information.
8. New Business
a. Approve Purchase of Horizontal Filter Skid for Lafayette Natural Gas
Interconnect Station
Hutchinson Utilities must install natural gas filtering equipment in the Lafayette
Interconnect Station to ensure that the natural gas delivered is free of debris.
Hutchinson Utilities solicited bids from S&S Technical, Inc., Nelson
Technologies, Inc. and R. W. Lyall & Company, Inc. for the horizontal filter skid.
After discussion, a motion was made by Commissioner Hanson, seconded by
Vice President Morrow to approve the purchase of horizontal filter skid for the
Lafayette Natural Gas Interconnect Station. Motion was unanimously carried.
b. Approve Coriolis Meter Skid with Building for Lafayette Natural Gas
Interconnect Station
In order to transport natural gas for Greater Minnesota Gas
Transmission/United Natural Gas, Hutchinson Utilities' Natural Gas Division
must construct an interconnect station at the delivery point. This station will be
directly adjacent to the natural gas pipeline on 350th Street, County Road 1,
approximately 4.5 miles west of Lafayette, Minnesota. Hutchinson Utilities
solicited bids from S&S Technical, Inc., Nelson Technologies, Inc. and R. W.
Lyall & Company, Inc. for the Coriolis meter skid with building.
After discussion, a motion was made by Vice President Morrow, seconded by
Secretary Girard to approve the Coriolis meter skid with building for the
Lafayette Natural Gas Interconnect Station. Motion was unanimously carried.
c. Approve RTU Building for Lafayette Natural Gas Interconnect Station
Hutchinson Utilities must install a RTU building, electronics building, in the
Lafayette Interconnect Station. Hutchinson Utilities solicited bids from S&S
Technical, Inc., Nelson Technologies, Inc. and R. W. Lyall & Company, Inc. for
the RTU building. Nelson Technologies, Inc. included cost of pressure
transmitter, temperature transmitter, platinum RTD sensor and manifold to the
cost of RTU building. Remaining bidders assigned costs to the Coriolis meter
skid with building. Nelson Technologies, Inc. has the lowest overall total cost for
the entire project, fastest delivery time and Hutchinson Utilities' current pipeline
skids have been fabricated by Energy Meter Systems. Energy Meter Systems
is currently represented by Nelson Technologies, Inc.
3
All expenses incurred by Hutchinson Utilities for the Lafayette Interconnect
Station shall be reimbursed by Greater Minnesota Gas Transmission.
After discussion, a motion was made by Secretary Girard, seconded by
Commissioner Wendorff to approve the purchase of the RTU building for
Lafayette Natural Gas Interconnect Station. Motion was unanimously carried.
(Bid Comparison and backup information attached.)
d. Approve Operating Agreement, Natural Gas Facilities — Heartland Corn
Products
Heartland Corn Products has requested that the Natural Gas Division of
Hutchinson Utilities Commission commence performing the operation and
maintenance, as required by the Department of Transportation, of the natural
gas facilities at their manufacturing site at 53331 State Highway 19, Winthrop,
Minnesota.
The natural gas facilities currently consist of an 8 inch Sensus auto correcting
turbine meter, a Mercury pressure and temperature correcting device, dual
monitoring regulator runs, dual inlet line filters, valving equipment as well as
above and below ground piping. This facility will be operated with a separate
operator identification number requiring compliance with all Department of
Transportation mandated programs such as Public Awareness, Drug and
Alcohol Testing, Integrity Management, leakage surveys, annual valve
inspection and maintenance, annual regulator inspection and maintenance, etc.
A motion was made by Secretary Girard, seconded by Vice President Morrow
to approve the Operating Agreement, Natural Gas Facilities — Heartland Corn
Products. Motion was unanimously carried. (Bid comparison and backup
information attached.)
e. Approve HUC Compensation Plan
GM Carter presented the Springsted consultant's revision on the compensation
plan recommendations. Some changes the consultant recommended were an
open based performance system with a minimum, midpoint, and maximum
grade range versus the step based system, pay adjustments to make sure
positions stay at a market competitive rate, use of the SAFE System, and a
2016 pay grid. GM Carter requested the Board approve accepting the
compensation study as presented along with approving the recommendations
on position classifications, pay grades, the on-going use of the SAFE System to
classify positions, and the 2016 pay grid.
After discussion, a motion was made by Commissioner Hanson, seconded by
Secretary Girard to approve the HUC Compensation Plan.
f. Approve Property and Liability Insurance
Jared Martig presented the 2016 property and liability insurance through the
League of Minnesota Cities Insurance Trust in the amount of $75,676. HUC did
not receive other quotes as it is rare to find a company that is cheaper. A
4
motion was made by Vice President Morrow, seconded by Secretary Girard
(Property and Liability Insurance Invoice attached.)
g. 2015 CIP Update (This agenda item was moved after agenda item Conflict of
Interest)
9. Adjourn
There being no further business, a motion was made by Commissioner Hanson,
seconded by Commissioner Wendorff to adjourn the meeting at 3:45 p.m. Motion
was unanimously carried.
Mark Girard, Secretary
ATTEST:la,4t Gt
Donna Luhring, President
5
2013-2015 Hutchinson CIP
Electric recap.
The total 1.5% kWh savings goal for the year, which is the most important goal of
the Minnesota CIP program, most utilities are struggling with to achieve. In 2015,
HUC saved 0.5% for a total of 1,562,981.00 total kWh. That is down from 2014 by
1,615,787.00 kWh. The reason for the decline is many industrial and commercial
customers did not do as many projects this past year. The trend is that the "low
hanging fruit" projects have all been completed. HUC was able to meet our goal
of 0.2% spending on low income families having spent 0.4%. HUC does see
decent savings from low income homes due to the ability to claim savings from
the weatherization of the home. HUC is not able to do the same on non -low
income homes. HUC spent more in 2015 than in 2014 by $6,944. That put HUC at
a 1.0% spending on total CIP expenditures. As a secondary goal of the CIP '
program, the state wants utilities to spend at a minimum 1.5% of their gross
operating revenues, but in doing so, those projects also must show kWh savings
attached to the project. By doing so, it limits utilities from spending money to
meet the spending requirement without trying to achieve the primary goal of
kWh savings.
Gas recap.
The total savings in 2015 on the gas report is a 1.1% annual savings. That is down
by 0.4% from 2014. The total MCF savings for the 2015 report is 17,491 MCF,
which is down 6,312 MCF from the prior year. In 2014, HUC saved 23,803 MCF.
HUC will meet the low income program goal of .2% with a spending of 0.4%.
Similar to the electric side, there are very good savings on the weatherization of
the homes on the low-income housing side that HUC is not able to claim on the
normal residential side. HUC did meet the 1.5% spending requirement on the gas
side but the state looks at the MCF savings as the number one priority.
Totals - Hutchinson Utilities Commission (MRES Member)
N ow WON
$225,719
$236,903
$243,847
"I M-UMORROMMO-0019JONAWN
0.9%1
0.9%1
1.0%
,
j #dj,
$225,719
$236,903 I
$243,847
� _
4'tl,07,A'OJ
t M9
57.8%1
62.2%1
66.5%
0.3%1
$12,9841
$11,8241
$18,498
A*,, As"7& eorlti'Ag,�
I v
ow, kowix VIA
0.2%1
0.2%1
0.4%
Oimldh011 Ii, I,
0 es -I
$200,000 1
$o
$0
nr41Ait riqljpq6lValen Sa V16gs,"IkW 61,
01
01
0
01
01
0
�j� �,,Peman 'Mcle,Savings At Generator (kwh�]
2,194,6701
3,178,7681
1,562,981
`
ditiia Savin` '
P�kWh)
2,194,6701
3,178,7681
1,562,981
E'n"'e-,r"!"gl,y"S",,a*,i'es: 1
0.8%1
1.1%1
0.5%
spend i'ni"&"*S-a'v'in'g's'Ga"s!"-,',,'�.,.,'.,"'?-:,,-'�
�201 ctua irs
10'Ekpend"
P, it'6res,4I
$67,955
$125,161
$182,725
EX'"end to esu /," 'Wi U"IsQ qOR:-
0.5%1
1.3%1
1.55
Tota ow ncome'1"
fi�end6res"
$10,330
$9,473
$18,964
e"i4mr6As bp"e"r-kinig Revenue,,:
0.2%1
0.3%1
0.45
g,
6,5251
23,8031
17,49:
4 nualbier
0.4%j
1.5%1
1.15
Exempt
UNPAID EXTENDED LEAVE OF ABSENCE
The General Manager may grant an employee's request for an extended leave of absence without pay.
The unpaid leave of absence shall be a minimum length of one month and a maximum length of six
months. Employees on an extended leave of absence for one month or longer which is not governed by
the FMLA, are required to pay the full cost of any health, long-term disability or life insurance premium
during the leave of the absence. Employees on unpaid leave of absence shall not earn vacation and sick
leave.
No employee shall be granted a leave of absence in order to accept a different position with another
employer. Acceptance of a full-time position with another employer shall be deemed a resignation of
the employee's position with HUC.
Non -Exempt
UNPAID EXTENDED LEAVE OF ABSENCE
The General Manager may grant an employee's request for an extended leave of absence without pay.
The unpaid leave of absence shall be a minimum length of one month and a maximum length of six
months. Employees on an extended leave of absence for one month or longer which is not governed by
the FMLA, are required to pay the full cost of any health, long-term disability or life insurance premium
during the leave of the absence. Employees on unpaid leave of absence shall not earn vacation and sick
leave.
No employee shall be granted a leave of absence in order to accept a different position with another
employer. Acceptance of a full-time position with another employer shall be deemed a resignation of
the employee's position with HUC.
Exempt
FAMILY DEATH
Employees may take a leave of absence with pay in the event of a death in the employee's immediate
family. Time allowed with pay for exempt employees may not exceed five (5) days per family member.
The paid time off will not be deducted from the employee's paid leave banks.
If an employee is called to participate in the funeral services for the death of a person who is not a
member of the employee's immediate family, an employee will receive four hours paid leave of
absence.
Non -Exempt
FAMILY DEATH
See Union Contract.
HUTCHINSON UTILITIES COMMISSION
(Hereafter referred to as HUC)
A five -member Commission governs HUC. The Commission members are appointed by the
Mayor and the City Council to each serve a five-year term. The Commission meets at 3:00 p.m.
the last Wednesday of each month. The following policies are reviewed and approved by the
Commission and it reserves the right to make changes, and/or to adopt new and amended
policies, as it deems necessary from time to time. The Commission also reserves the right to
vary from its policies in special circumstances.
HUC is a municipal utility that is owned by its citizens, through the City Council and its political
subdivision, the Hutchinson Utilities Commission.
Public / Customer Hours
Monday through Friday
7:30 a.m. to 4:00 p.m.
Address & Phone
225 Michigan Street SE
Hutchinson, MN 55350-1905
(320) 587-4746
Emergency Service
(320) 587-4745
Web Address
www.hutchinsonutilities.com
Adopted July 31, 2013
Amended June 29, 2016
Delegation of Authority
From time to time the General Manager will be absent.
When the situation warrants, every effort to contact the General Manager will be
made. If contacting the General Manager is unsuccessful and the situation still
exists, the General Manager's full authority will be g+v,-R delegated to the Dior
of the Natural Gas Division Director.
If contacting the Director is unsuccessful and the situation still exists, the General
Manager's full authority is gike delegated to the Department Managers;
Transmission and Distribution, Engineering Services, Production,
Financial/Customer Service. Once Authority has been delegated, the General
Manager will be informed of anv actions taken or decisions made the decici„nc by
the respective director or managers made.
LAFAYETTE INTERCONNECT STATION
FILTER SKID, METER SKID AND ELECTRONIC BUILDING
HORIZONTAL FILTER SKID
CORIOLIS METER SKID W/BUILDING
RTU BUILDING
SUB -TOTAL
SHIPPING
PACKAGING AND LOADING
START-UP OF CORIOLIS & SG METERS
TOTAL
DELIVERY
NOTES
INELSON/EMS I R.W. LYALL I S&S TECHNICAL
$37,754.40
$98,999.73
$17,368.05
$154,122.18
$1,975.00
INCLUDED
$156,097.18
$28,095.00
$125,175.00
$10,419.00
$163,689.00
INCLUDED
INCLUDED
$49,580.00
$182,150.00
$37,750.00
INCLUDED I '1'200/DAY
ALL EXPE
$163,689.00 $269,905.00
PLUS SHIPPING &
START-UP
12 WKS FOLLOWING
14 - 16 WKS LEAD TIME + 3
DRAWING APPROVAL
4 WKS ASSM
INSTALLING SALON
SKIDS NOT DESIGNED TO
BALL VALVES DUE
HUC
TO PAST EXPERIENCE
REQUESTED/REQUIRED
WITH AOP VALVES
MAOP
4 WKS DRAWING
APPROVAL + 10 -
12 WKSTO
SHIPMENT
HUTCHINSON UTILITIES COMMISSION
LAFAYETTE INTERCONNECT
REQUEST FOR PROPOSAL FOR THE FOLLOWING:
HORIZONTAL FILTER, 3,600 MCF/D
TAG: LAFAYETTE INTERCONNECT
A. SKID MOUNTED
B. ASME CODE
C. FULL PORT, BALL VALVES
D. RADIOGRAPHIC PIPING TO API -1 104
E. HYDROTEST PIPING TO 2220 PISG FOR 4 HOURS MINIMUM
F. MTRs
G. CAD DRAWINGS
H. ONE COAT OF SHOP PRIMER AND ONE COAT WHITE ENAMEL PAINT.
I. ANSI 600
J. SKID INLET PIPING — 4"
K. SKID OUTLET PIPING — 4"
L. FILTER MAKE — NOWATA
M. FILTER MODEL — GZAC 1 C 144W3CJN
N. VALVES — AOP (WHEELS ON ALL VALVES 4" AND LARGER, LOCKING HANDLES
ON ALL VALVES SMALLER THAN 4)
0. XYLAN COATED STUDS AND NUTS (ALL) — NOT PAINTED
2. CORIOLIS METER SETTING W/BYPASS, BLOCK VALVES, PRESSURE AND TEMPERATURE
CORRECTION, FISHER FLOW -BOSS FLOW COMPUTER WITH LIVE SPECIFIC GRAVITY
CORRECTION, 0.5 — 150 MCFH
TAG: LAFAYETTE INTERCONNECT
A. SKID MOUNTED
B. METER BUILDING W/HEAT TO ENCLOSE METER SKID
C. FULL PORT, BALL VALVES
D. RADIOGRAPHIC PIPING TO API -1 104
E. HYDROTEST PIPING TO 2220 PISG FOR 4 HOURS MINIMUM
F. MTRS
G. CAD DRAWINGS
H. ONE COAT OF SHOP PRIMER AND ONE COAT WHITE ENAMEL PAINT.
I. ANSI 600
J. FLOW CALIBRATION
K. HUTCHINSON UTILITIES WILL PURCHASE AND INSTALL RTU
L. MINIMUM FLOW — 25 CFH
M. MAXIMUM FLOW — 150 MCFH
N. METERING AT 950 PSIG TYPICAL
0. PRESSURE MONITORING
P. ACCEPTABLE ACCURACY AT MINIMUM FLOW: 99 — 10 1 %
Q. DUAL METER RUNS (IF REQUIRED) ACTUATORS AND ASSOCIATED
EQUIPMENT/SOFTWARE INCLUDED ON SKID.
R. INLET PIPING — 4"
S. OUTLET PIPING — 4"
T. VALVES — AOP (WHEELS ON ALL VALVES 4" AND LARGER, LOCKING HANDLES
ON ALL VALVES SMALLER THAN 4")
U. XYLAN COATED STUDS AND NUTS (ALL) — NOT PAINTED
3. ELECTRONICS BUILDING
A. SIZE: 6'x 6' TYPICAL
B. HEAT AND COOL
NELSON TECHNOLOGIES, INC.
9701 Valley View Road, Eden Prairie, MN 55344 - (952) 835-1895 - Fax (952) 835-4614
NELSON TECHNOLOGIES QUOTATION
Quoted To,
Hutchinson Utilities
225 Michigan Street, SE
Hutchinson, MN 55350
Attn, John Webster
ItemI Qty
No.
Description
RTU BUILDING
RTU Building Skid Design:
4'x 6' RTU desert tan building mounted on a 4'
channel iron x 8' skid. Customer to procure and
install Flow Computer.
Major Components:
(1) 2668 Commercial Steel Insulated Door with
Panic Hardware and Half Glass
(1) 12" x 12" Bulkhead for tubing coming in;
locate on back wall in center.
(2) 12" x 12" louvered vents (One high, One
low).
Floor and walls will be insulated with spray foam
insulation.
Interior walls will be 29 Ga. preformed sheet
metal.
3' Mesal Shelf installed next to Din Rail for
customer to install flow computer
Floor will be raised pattern (checkered steel).
(1) AC / Heat Pump - 8000 BTU cooling - 3850
BTU Heating - Friedrich Model EP08G11
(1) 12 Lug - 100 amp main — Load center with (2)
20 amp SP Breakers
(1) Universal Junction box installed inside to stub
out to load center
Date:
5/161'16
Quotation:
50616-1778MACIWi
Application:
Lafayette Skids
Location:
Hutchison, MN
Requisition:
Mike Nelson
F.O.B.:
Origination
Terms:
Net 10 Days
Page:
i of 5
Unit Total Estimated
Price Price ( Ship Date
$17,868.05
$17,368.05
Piping:
NONE
General:
MicroMotion Startups for Coriolis meters,
FloBoss and Specific Gravity Meter included.
lr Prest;e'ranstnitEar
MOO,
1_,.11
2TCi4 1;lAlAD1iKSM5B4
IW D' 'c
M 00iB�t21i0 30T26E5VIR11
I atiifold PW 0306RT22BA11
Testing:
NONE
METER SKID
Station Design:
8'x 10' Coriolis Meter building consisting of two
meter runs complete with actuated tube switching
valves, and one 4" bypass run. Meters, valves,
actuators, specific gravity meter, and FioBoss
described below.
Desert tan color
(2) 3070 Doors w/ Half Glass and Panic
Hardware
(1)12" x 18" Bulkhead for tubing & Electrical
Stub out; located on 8' back wall upper comer
(2) 12" X 12" louvered vents (One high, One low)
Floor and walls will be insulated with spray foam
insulation.
Interior walls will be 29 Ga. Preformed sheet
metal.
Skid will be 6" Channel Iron; 12' long —
Floor will be raised pattern (checkered steel).
Major components:
(2)'/V Coriolis Meters;
CMFS010M319JFA2WCZZ &
CWSOSOM319NFA2EKZZ
(2) Transmitters
5700I12AB2AZZZZAZZZTGMV
(1) Specific Gravity Me er w/ Enclosure
ETOIT'EMMX 25532
(1) Fisher Flo Boss- FS 107E/107ABB1/C3
Includes RS232 Module, 6 pt IO Module, 6 pt
DO Relay Module and Gas Control MGRV3
FB107.
(2)'/s" Swagelok actuated tube switching ball
valves complete with solenoid and limit switch
(2) Supply gas systems for tube switching valves
$98,999.73
$98,999.73
(1)12" x 24" Catco CGA 120 volt heater
complete with HP and LP regulators with 120
volt on/off switch
(2) 4" 600# Balon Full Port Floating Ball valves
(4) 2" 600# Baton Full Port Floating Ball Valves
Piping:
4" inlet 600 # ANSI RFFE Flange
4" outlet 600 # ANSI RFFE Flange
4" inlet header
4" outlet header
4" bypass run
(2) 2" meter runs
(7) Y4" Tot SS Balon Ball Valve installed
(2) W' Tol SS Balon Ball Valve installed
(1) W Tol SS Balon Ball Valve installed
Tubing, wiring and EMT conduit as required.
Teflon blue coated studs and nuts
Piping and skid painted white (one coat shop
primer and one coat of enamel paint)
Supports included for pipe and gas supply
systems
General:
None
Testing:
Hydro test piping to 2220 psig for 4 hours
X-ray piping to API 1104
MTR's provided
FLUER SKID
Filter Skid Design:
Skid mounted Nowata Horizontal Filter skid
complete with 4" inlet and outlet flanges and 3"
filter connections and 4" bypass. Complete with
8'Wide x12' Long; 6" 8.2# channel iron skid
with floorplate.
Major components:
(1) Nowata horizontal dry gas filter (part #
GZAC3C144W3CDN
(1) Case of 4 filter elements (part # NFG 336)
4" cone strainer (installed)
(1) 4" ANSI 600 Full Port Gear Operated Balon
Floating ball valve
(2) 3"ANSI 600# Full Port Lever Operated Balon
Floating ball valves
Piping:
4" inlet 60L#ANSRFFEI Flange
4" outlet6# ANSI RFFE Flange
4" inlet header
4" outlet header
4" bypass run
(3)'W Tol SS Balon Ball Valve installed
Teflon blue coated studs and nuts
Piping and skid painted white (one coat shop
primer and one coat of enamel paint)
$37,754.40
$37,754.40
General:
None
Testing:
Hydro test piping to 2220 psig for 4 hours
X-ray piping to API 1104
MTR's provided
Individual Freight Charge per skid:
$658.34 x 3= $1,975.00
(All skids can fit on one truck)
Please note: Prices are Contingent upon
the purchase of all 3 Skids at same time
NOTE:
1) Current Delivery: 12 weeks ARO and After
Approval Drawings - Based on 10 Week
Delivery of Specific Gravity Meter Assy.
2) Availability Subject to Review at Time of
Order.
3) All Above Materials Subject to Prior Sales.
4) Prices Valid for 30/Days
5) Terms NET 30 Days
6) Customer Responsible for Unloading and
Setting Building on Site
•--continued----________
ALL LEAD
TAOS
SUBJECT TO
PRIOR SALE
NOTE:
If this quotation should turn into an order please
address and send purchase order to the following:
Nelson Technologies
9701 Valley View Road
Eden Prairie, MN 55344
Fax 952-835-4614
mcarlsonCameltechinc.com
Remit To address is the following:
Nelson Technologies
9701Valley View Road
Eden Prairie, MN 55344
Fed ID # 41-1829593
Note: Any returns will be accepted solely at the
discretion of Nelson Technologies and/or the
manufacturer. Restock fee may apply.
i
All orders placed by you, and any shipment made by
Nelson Technologies, Inc. as a result of such order, shall be
subject to the terms and conditions above, as well as the
standard Terms and Conditions of Nelson Technologies, Inc.
attached hereto, notwithstanding any inconsistent or
additional terms that may be embodied in your purchase
order
minimum Tax Not
Purchase Included
Order
$1125.00
$ales Representative:
Signature
Prices Firm for
30 Days
,Ir
NELSON TECHNOLOGIES, INC.
Terms and Conditions
I. Definitions. _`Buyer" shall mean the party purchasing Products pursuant to these Terms and
Conditions. "Company" shall mean Nelson Technologies, Inc. a Minnesota corporation.
"Products" shall mean the products manufactured by third parties and resold or otherwise
provided by Company to Buyer pursuant to a Company quotation and these Terms and
Conditions.
Z. Contract of Sale. All Products are offered for sale by Company subject to the prices and other
terms specified in (a) the applicable Company Quotation, proposal or pricelist, and (b) these
Terms and Conditions, all of which are subject to the correction of clerical errors. A Buyer's
purchase order, written or verbal, shall constitute an acceptance of the offerto sell. Any
inconsistent, additional or different terns contained in a Buyer's request for quotation or
purchase order j"Additional Terms") are hereby rejected by Company.
3. Pricing. All pricing is valid for 30 days from date of original quotation. All prices are subject to
change due to errors and omissions. Prices quoted for blanket orders are subject to review at
intervals mutually agreed upon prior to blanket order acceptance.
4. Taxes. All prices quoted are exclusive of federal, state and municipal taxes. Buyer shall be liable
for all sales, use and other taxes (whether local, state or federal) imposed on the sale or
provision of Products and/or services to Buyer hereunder.
S. Shipment Terms. All Products are shipped FOB point of origination, freight prepaid and added to
invoice. All title to and risk of loss in the Products shall pass to Buyer upon shipment.
6. Payment Terms. Buyer shall pay all invoices within thirty (30) days of the date of invoice.
Company may require full or partial payment prior to shipment of any Products provided
hereunder. Company reserves the right to establish credit limits for Buyer. Any Invoices not
disputed in good faith by Buyer which Buyer does not pay within the time provided in these
Terms and Conditions shall bear interest at the lower of (i) one and a half percent (1.5%) per
month up to a maximum of eighteen percent (18%) per year; or (ii) the highest rate permitted
by applicable law. Should Buyer become delinquent in payment of sums due hereunder,
Company shall not be obligated to continue performance.
7. Packaging. Company reserves the right to select the manner in which Products are packaged.
Quoted prices include regular packaging. Special requirements for packaging may be subject to
additional charge.
S. Delivery and Acceptance of Products. Shipping dates quoted by Company are made In good
faith and are not guaranteed; Company reserves the right to extend shipping dates as it deems
necetary in its sole discretion, without liabili to Buyer. In the absence
of shipping instructions
from buyer, Company will use its discretion a to the selection of shippi services and routings.
Installation of Products is the responsibility of the Buyer unless quoted separately. Shipment
discrepancies or Products received damaged must be reported to Company within 30 days of
receipt of shipment.
9. Force Majeure. if Company becomes unable, either wholly or in part, by an event of Force
Majeure, to fulfill its obligations under these Terms and Conditions, the obligations affected by
the event of Force Majeure will be suspended during the continuance of that inability. Company
will take reasonable steps to mitigate the Force Majeure. "Force Majeure" means an event
beyond the reasonable control of Company, including acts of God, hurricane, flood, volcano,
tsunami, tornado, storm, tempest, mudslide, vandalism, illegal or unauthorized radio frequency
interference, strikes lockouts, or other industrial disturbance, unavailability of Products from the
manufacturer, acts of public enemies, wars, blockades, insurrections, riots, epidemics,
commission or agency of the United States or any States, any arrests and restraints, civil
disturbances and explosions.
10. Cancellation. Orders submitted to Company may not be canceled or amended, or deliveries
deferred, by Buyer except with Company prior written consent, and then only upon terms as
shall be acceptable to Company. Custom or specialty products are non-refundable.
11. Returns. No Products may be returned for credit or repair without prior written authorization of
Company or applicable manufacturer. Authorized return shipments must be returned in good
condition in accordance with the Instruction in the Return Material Authorization (RMA), must
be accompanied by a packing slip, including the applicable RMA, and must have a transportation
charges prepaid. Correspondence concerning all returned Products must be addressed to the
Companies Corporate office. Company reserves the right to charge a service fee of 30% or more,
determined by the product in question, of invoiced Product price to cover all inspections,
testing, handling and restocking.
12. Warranties. Company does not warrant or guarantee Products sold by Company. Company's
sole responsibility with respect to warranties of products is to make a bona fide effort to
transferto Buyer, the manufacturer's warranty where available. Company expressly disclaims
any and all other representations and warranties, express, implied or otherwise, including
without limitation, warranties as to fitness for a particular purpose, merchantability, non-
infringement and title.
13. Limitation of Liability.
a) Company's aggregate liability in any and all causes of action arising under, out of or in
relation to these terms and conditions, its negotiation, performance, breach or termination
(collectively "CAUSES OF ACTION") shall not exceed the total amount paid by buyer to
company under these terms and conditions. This is so whether the causes of action are in
tort, including, without limitation, negligence or strict liability, in contract, under statute or
otherwise.
b) As a separate and independent limitation on liability, Company's liability shall be limited to
direct damages, company shall not be liable for (1) any indirect, incidental, special or
consequential damages; nor (11) Any revenue or profits lost by buyer or its affiliates from any
end user irrespective of whether such lost revenue or profits is categorized as direct damages
or otherwise.
c) The Imitations on liability set forth in these Terms and Conditions are fundamental
ind ements to Company en4ring into these Terms and Conditions. They apply
unconditionally and in all respects. They are to be interpreted broadly so as to give Company
the maximum protection permitted under law.
14.' Confidentiality. Buyer shall (and shall cause its employees and contractors to) keep all Company Confidential
Information strictly confidential and shall not disclose it to any third party or use it, except to the extent reasonably
required to perform and enforce these Terms and Conditions or as required under applicable law, court order or
regulation. As used herein, "Company Confidential Information" means any and all non-public information of
Company. Notwithstanding the foregoing, Company Confidential Information shall not include: (i) any information
that is in the public domain other than due to Buyers breach of these Terms and Conditions; (ii) any information in
the possession of the Buyer without restriction prior to disclosure by Company; or (til) any information
independently developed by the Buyer without reliance on or access to the information disclosed hereunder by
Company.
15. Governing Law and Dispute Resolution. These Terms and Conditions shall be governed by, construed and
enforced in accordance with the laws of the State of Minnesota, without regard to conflicts of law principles. Any
and all disputes arising under, out of, or in relation to these Terms and Conditions or its performance j"Disputes")
shall first be resolved by the parties attempting mediation in Minnesota. If the dispute is not resolved by the
parties within sixty (60) days of the commencement of the mediation, it shall be litigated in the state or federal
courts located in the State of Minnesota. To the maximum extent permitted by law, the parties agree t o a bench
trial and that there shall be no jury in any disputes.
16. Severability. In the event any provision of these Terms and Conditions is held to be void, unlawful or otherwise
unenforceable, that provision will be severed from the remainder of the Agreement, and replaced automatically
by a provision containing terms as nearly like the void, unlawful, or unenforceable provision as possible; and the
Agreement, as so modified, will continue to be in full force and effect.
17. Non -Waiver. Failure or delay of Company to exercise a right or power under these Terms and Conditions shall
not operate as a waiver thereof, nor shall any single or partial exercise of a power preclude any other future
exercise thereof.
Version 1.0392015
John Webster
From: Mike Nelson <MNelson@neltechinc,com>
Sent: Thursday, May 12, 2016 7:54 AM
To: John Webster `
Subject: RE: Meter Skid - P&T Transmitters
John:
The pressure and temperature transmitters were not included in the quotation. Although the original spec called out
pressure and temperature correction we were thrown off by the inclusion of the Coriolis meter transmitters and did not
add the separate pressure and temperature transmitters. I now realize that the Coriolis transmitters only transmit their
own signal and are not used for P&T. EMS is sending me the additional wording and pricing for the P&T transmitters
today or tomorrow depending on how quickly Rosemount responds. My apologies for the confusion. Thank you for
pointing this out.
Sincerely,
Michael Nelson
Nelson Technologies, Inc.
Office: 952-835-1895
Cell: 612-860-2007
Fax: 952-835-4614
Visit us at www.neitechinc.com,
From: John Webster f maiito:JWebstereci.hutchinson.mn.usj
Sent: Wednesday, May 11, 201612:01 PM
To: Mike Nelson (mnelsonOneltechinc.com) <mnelson0neltechinc.com>
Subject: Meter Skid
MIKE,
r
I DO NOT SEE WHERE YOUR METER SKID SPECIFIES THE PRESSURE AND TEMPERATURE MONITORING
DEVICES. MAY I ASSUME THEY ARE INCLUDED IN THE PRICE BUT NOT SPECIFICALLY CALLED OUT?
JOHN C. WEBSTER — RGDP
DIRECTOR — NATURAL GAS DIVISION
HUTCHINSON UTILITIES COMMISSION
320-234-0507
320-583-9123 - CELIJ
i��HUBBELL
6LYALL
May 11, 2016
To: Hutchinson Utilities Commission
From: R.W. Lyall & Company, Inc.
Subject: RTU Building
16875 W. Ryerson Rd.
New Berlin, WI 53151
800-535-9255
The pricing for the RTU Building per the specifications provided is $10,419 each. The building is a
Parkline self -framing steel building. The size is 6'8" x 8' with R1 insulation in the walls and floor and
R19 in the ceiling. Interior is formed steel wall panels. Building exterior to be tan and interior to be
white. Building will have light installed and HVAC for heating and cooling.
If you have any questions or require additional information do not hesitate to contact us.
Best Regards,
Jim Miller Greg Szajna
Large Fabrication Sales Inside Sales
262408-1163 262-784-8180
imillerAMb all.com gszainaQ)xwl aly l.com
Or BURNDY' an" wlkOY FB=2= JYMPM 6dreaker, 6TYMj
16875 W. Ryerson Rd.
6LYALL New Berlin, WI 53151
800-535-9255
Date: May 20, 2016
To: Hutchinson Utilities Commission
From: RW Lyall & Company, Inc.
Subject: Lafayette Interconnect
The pricing for the pieces of the Lafayette Interconnect per the specifications provided are as follows:
Filter Station $28,095 and Meter Station $125,175. All components of the station will be skid mounted
with a 1440 psig MAOP. The meter station is designed with a 2" header before the Coriolis meters to
allow the meters to be installed with a minimal amount of tubing required. The control valves on each
meter are installed along with two pressure transducers and one temperature transducer. Everything is
wired to a cabinet but there is not a PLC installed or programed because we assume that you would want
to duplicate what you are already using and not pay for programing time. The Gravity meter is installed
and wired to power and into the control box inside the building.
The price listed includes all Materials, Fabrication, Assembly, Testing, Painting and Transportation for
the unit described. Upon receipt of purchase order RW Lyall will create manufacturing drawings of all
the items and submit them for approval. Listed below are the components that the quote is based on if
different manufactures or options are preferred quote will be adjusted as necessary.
Notes:
1. Prices include all miscellaneous materials required.
2. Approval Drawings — Available within three weeks of receipt of PO.
3. Identification — All units are uniquely serial numbered to MTR and test results,
4. Testing — 100% X -Ray identified to joint and 4 hour hydrostatic test at 1.5 times (2220 psi) the
system MAOP (1440 psi). That is the MAOP of the filter housing.
5. Welding — API -1104 and AWS 9.1 Certified Welders as required — Qualified weld procedures
and test certifications available upon request.
6. Meters — Emersion Micromotion CMFSO1OM319JFA2ECZZ and CMFS050M319NFA2EKZZ
each with 5700 Tranmitters 12AB2AZZZZAZZZTGMV with start-up installed
7. Transducers — (2) Rosemount 3051 Pressure trandsducers and (1) 3144 Temperature Transducer
8. Gravity Meter— Emerson ETOITEMMX_25532 with start-up installed
9. PLC — FloBoss 107E.
10. Coating — Standard finish for the pipe and skid is Amershield2 Urethane topcoat in White over
Amerlock Il Epoxy Primer.
11. Valves — 3" & 4" valves are AOP full port trunnion valves with wheels on 4" valve.
12. Carbon Steel Fittings & Pipe — All Domestic suppliers API 5L X-42 standard wall pipe and
Grade B Fittings.
13. Sldd—W6x15 I-beam skid with fixed height pipe stands. With I" tread plate floor.
14. Buildin — Parkline Self -framing steel buil ng Size 8"' x 16' with R13 insulation in the walls
and floo , and R19 in the ceiling. Interior is (formed steel wall panels. B '(ding exterior to be Tan
and Interior to be white. Building will have light installed.
15. Electrical — Interior of building will be Class 1 Div 2 and have the lights and instruments wired
to a junction box outside the building. Inside the wall instrumentation will be wired to a box for
installing the PLC. PLC and programing is not included.
O BURNDY sMs-a_aw WIkeyMR 6a5Breaker. OLYALL
HUBBELL
41
LYALL
16875 W. Ryerson Rd.
New Berlin, WI 53151
800-535-9255
16. Stainless Tubing — 1/2" Swagelok instruments tubing and valve.
17. Payment Terms — Net 30.
18. Lead Time - Building lead time is 13-15 weeks plus an additional 2-3 weeks for assembly.
We look forward to growing our relationship with Hutchinson Utilities Commission. If you have any
questions or require additional information please do not hesitate to contact me.
Best Regards,
Jim Miller
Large Fabrication Sales
(262)408-1163
jmiller@rwlyall.com
+ BURMW aMPLO' w'kGY
. A N
e
GasBreaker. �.
�p YEAR ANNIVERSARY
PROPOSAL: SST6-038 R1
PREPARED FOR: John Webster
Director Natural Gas Division
PROJECT NAME: Filter/Meter Skids - Low Flow Interconnect Station
PREPARED BY: Pete Singleton
VP Strategic Markets
pete@skidsolutions.com
This proposal is valid for 30 days from 5/17/2016
S&S Technical, Inc.
Office: 678-867-7024 / Fax: 678-867-7138
1900 Grassland Parkway Alpharetta, GA 30004
Wjvw.skidsolutions com
st&s
T a C'H N I C,& L PROPOSAL SST6-038 Rl 5/17/2016
ENGINEERING ( FABRICATION j AUTOMATION
John Webster
Director Natural Gas Division
Thank you for the opportunity to provide you with a proposal for your Low Flow Interconnect
Station Meter and Filter Skids project.
The following proposal is based upon the specifications provided and our understanding of the
application per our conversations with you. Based upon those specifications and conversations,
we believe this to be a value added solution which will exactly meet your needs. As you continue
to develop the project, please feel free to contact S&S Technical for any clarification you may
need. We are committed to provide you the information necessary to bring your project to a
successful conclusion.
This proposal includes the general equipment requirements, terms/conditions and pricing and we
encourage you to reference these as the project progresses. Note that all shipping will be Ex -
Works Alpharetta, Georgia and unless explicitly stated those costs are not included in this project
quotation.
We are looking forward to working with you.
Should you have any questions feel free to contact us.
Sincere Regards,
Pete Singleton
VP Strategic Markets
S & S Technical, Inc.
K
&s
rE C H N 1 C A L PROPOSAL SST6-038 R1 5/17/2016
ENGINEERING I FABRICATION I AUTOMATION
Application Details:
Dual Run Meter Skid
Solution Details:
Mechanical
• Skid frame - powder coated per S&S Technical standard paint specs
• Eight (8) 600# 90's
• Four (4) 4" Tees
• Twenty (20) 4" flanges
• Eight (8) 4" valves
• 4" piping
• Two (2) Coriolis flow meters
• One (1) Fisher Flow Boss Computer
• All skid wiring and conduit
• Junction box
• X-ray
3
S &s
rEC'MNICAL
ENGINEERING I FABRR:ATMUTAUTOMATION
Application Details:
6'x 6' Building with HVAC
Solution Details:
Mechanical
• Heat/Air equipment sized for building
• All electrical
• Junction box
• Building with insualted walls
2
PROPOSAL SST6-038 Rl � 5/17/2016
S &s
iT'ECHNIC/&L
ENGINEERING] FABRICATION IAUTOMATION
Application Details:
Filter Skid
PROPOSAL SST6-038 R
Solution Details:
Mechanical
• Skid frame - powder coated per S&S Technical standard paint specs
• Two (2) 4" 90's
• Two (2) 4" Tees
• Three (3) 4" valves
4" piping
• Nowata Filter
• X-ray
5 I
5/17/2016
S &S
r E C•H N I C A L PROPOSAL SST6-038 R1 5/17/2016
ENGINEERING f FABRICATION j AUTOMATION
Testing:
• All system piping will be fabricated, welded, assembled and tested per ASME B31.3 unless
otherwise specified by customer
• The system's operation will be simulated as much as practical before it leaves S&S Technical's
facility.
• If testing above and beyond S&S Technical's standard procedures and QC documentation is
required, the client must notify S&S Technical prior to issuing a purchase order as there may be
additional expenses required to accommodate the client's specific test procedures.
Documentation:
• P&ID (Unless customer supplied)
• Mechanical CAD Drawings (Unless customer supplied)
• Electrical CAD Drawings and Schematics (Unless customer supplied)
• All component instructions and maintenance manuals - provided on CD of Record - (1) copy
Note to Buyer:
• The Investment and Delivery Summary on the following pages provides important information
on Drawings, Fabrication, and Project Sign -off. It is in the interest of the Buyer to read this
information in its entirety.
0
s &s
T E CH N I C A L PROPOSALS!
ENGINEERING FABRICATION t AUTOMATION
INVESTMENT
Dual Run Meter Skid
Filter Skid
6' x 6' Building with HVAC
DELIVERY
i-038 Rl (5/17/2016
$182,150.00
$49.580.00
$37,750.00
APPROVAL DRAWINGS:
• P&ID for review and approval - (1) week after approved order
• Mechanical & Electrical approval drawings - (2)-(3) weeks after approved P&ID
EQUIPMENT SHIPMENT:
• (10-12) weeks from receipt of approved drawings.
Shipping
• Ex -Works - Alpharetta, GA USA
Packaging and Loading of Trucks
• $425.00
st&js
T e C'H N I C A L PROPOSAL SST6-038 R1 5/17/2016
ENGWEEMNG ( FMMCAMN r AUTO&%MN
Commissioning Spares: �..___..
• None required
2 -Year Operating Spares
• To be provided after approved drawings
Startup and Commissioning:
• $1,200.00 per day plus expenses billed at cost for air travel, meals, accommodations, ground
transportation.
8 j
i
S&IS
T E C`H N I C,& L PROPOSAL SST6-038 R1 5/17/2016
EN *&MNG j r-MR"noN j wtownoN
STANDARDS & C
„ APABILI7TES
Mechanical Engineering:
• AutoCad
• SOLIDWORKS 31) Design
• PEA (Finite Element Analysis)
• Flow calculations and Simulation
• Pump/ compressor/ meter/piping flow rate analysis
• Structural Calculations
• Pump/ Compressor sizing
• Plant Layout
Electrical Engineering:
• AutoCad Electrical
• Control and Automation
• PLC
• HMI
• Programming
• Allen Bradley
• Siemens
• Control Panel Design
• Control Panel Construction
• UL508A Certified
Fabrication:
• Structural Welding per AWS D1 Structural Welding Code
• Process Piping per ASME B31 Code for Pressure Piping
• Welders Certified to AWS and ASME Sec IX
• Machine Shop
• Chart Recorded Hydrostatic pressure testing
• ( 20 Tn overhead crane lifting capacity I
• Carb�an Steel, Stainless Steel, Aluminum, Specialty Alloys, IPlastics;
9 I
s`-'mss
TECHNICAL PROPOSAL SST6-038 R1 5/17/2016
ENGINEERING ( FABRICATION j AUTOMATION
Investment and Delivery
livery Summary.
Seller° is S&S Technical, Inc. "Buyer" is the entity to which Seller's Offer or Quotation is made, or the entity
purchasing Goods and/or Services from Seller.
Pricing includes: All in-house engineering, labor, and testing fees. Should a Factory Acceptance Test (FAT) be
requested, scheduling will be made with adequate time to allow all parties to be present.
Terms & Conditions Overview: Below are highlights of Sellers Terms & Conditions (T&C). The complete T&C are
attached to this document for your review and may expand each section below. Upon receipt of a purchase order based
upon this quotation indicates to Seller that Buyer has read and agrees to the a// T&C contained herein.
Proposal Valid: Thirty (30) days. This Quote is based upon information supplied from Buyer as of this date. Changes to
the quote price may be required if: a) further information is received from Buyer that was not originally available, or b) the
quote converts to an ordered project and additional Buyer specifications become available that changes the project
scope. Seller will make every effort to work with the Buyer to ensure all documentation Is available prior to the
completion of the quote.
Payment Terms (see full terms on following page): All payments are to be made in U.S. Dollars only. All payments
are net Thirty (30) days. Project invoicing will occur on the following progress payment schedule: 25% upon receipt of
purchase order, 45% upon approved drawings OR upon approval to purchase materials, 20% upon completion of
fabrication, 10% upon shipment. Shipping fees will be included in the final invoice.
Drawings: Drawings consist of a written system description, MID and general arrangement CAD drawings. Seller will
provide an initial set of MID and General Arrangement drawings, submitted for customer approval (Rev 00) upon which
the Buyer may comment and redline as needed. A following drawing revision (Rev 01), reflecting Buyer comments, will
be submitted for final Buyer approval. Drawing revisions requested after the submittal of Rev 01 may have associated
fees that will be billed to the Buyer at an hourly rate specific to that project. In cases where the Buyer provides a written
description of the system and/or MID approved for construction and/or general arrangement drawings approved for
construction Seller will not recreate these documents unless it is explicitly requested and quoted as a separate line item.
Fabrication: Upon receipt of Buyer signed and approved drawings, fabrication will begin (drawings must have signature,
no electronic approval will be accepted). Changes made to components originally included in the quote may delay
fabrication based on vendor availability. Seller will make Buyer aware of lead times and obtain Buyer acknowledgement
(electronic notifications are acceptable).
Project Sign -off. Seller requires a Buyer representative to issue a sign off for the units) prior to release for shipment.
Seller strongly recommends that a Buyer representative be present for the FAT. In lieu of a Buyer representative being
present, the Buyer may sign off on the system after review of detailed photos of the equipment that will be supplied by
Seller. After sign off, Seller will not be responsible for any cost associated with Buyer equipment modifications or travel
to site associated with such request. Seller will fully support any requested Buyer changes and will provide the Buyer
with a proposal for any on site support and/or cost for any changes or modifications to the equipment.
Restocking Fees: Changes to components by Buyer, once ordered based on earlier approval, will incur restocking fees.
All fees will be billed to the Buyer along with any related project management fees, at the time they occur and must be
paid prior to shipment of the project.
Cancellation Fees: if the Buyer cancels the order for any reason other than Seller's breech, the cancellation fee
schedule is the indicated percent of the full purchase order amount as follows: 25% prior to release of a proved
drawings, 35% after approved drawing have b en released for fabrication, 75"/o if major material purchase has lcurred,
100% at start of production, 110% after completion— equipment will be scrapped and disposed of.
Tax: This price does not include any state or local taxes. Any applicable state or local taxes will be handled directly by
the client.
10
S &s
T a C'H N I C A L PROPOSAL SST6-038 R1 5/17/2016
ENMNEERMGI FABRICATION I AuMMATION
TERMS AND CONDITIONS OF SUPPLY OF GOODS AND SERVICES -
The following Terms and Conditions shall apply to and be incorporated into any transaction entered by and between Seller and Buyer.
Such terms and conditions are hereby incorporated Into Seller's Quotation and Invoice to Buyer, and in the event that Buyer's
purchase order, acceptance or other transactional document executed by Buyer should conflict with these terms and conditions, the
provisions of these Terms and Conditions of Supply of Goods and Services shall control.
1. DEFINITIONS: "Seller" is S&S Technical, Inc. "Buyer" Is the entity to which Seller's Offer or Quotation is made, or the entity
purchasing Goods and/or Services from Seller. "Goods" means the products, components, and parts offered assembled,
manufactured or sold by Seiler and included In Seller's Offer and/or Buyer's Order. "Services' means Support Services offered or
rendered by Seller. "Order" means Buyer's purchase order or other document evincing acceptance of Seller's Offer. All references to
"terms and conditions" herein mean and Include (a) these "Terms and Conditions of Supply of Goods and Services", (b) Seller's
Special Terms and Conditions, if applicable, and (c) any other terms and conditions mutually agreed by the Parties in writing, in
accordance with Section 3 herein. Seller and Buyer are sometimes referred to herein individually as a "Party' and jointly as the
"Parties".
2. ENTIRE AGREEMENT: Except as otherwise reflected in a contract regarding the subject matter hereof which has been executed
by authorized representatives of Buyer and Seiler, the terms and conditions which govem the sale of the goods and the supply of
services are limited to the provisions specified herein. Formation of any contract is expressly made conditional on Buyer's assent to
these terms and the terms of Seller's quotation, which constitute the sole, entire, and exclusive agreement between Buyer and Seller
in this transaction and supersede all prior discussions, proposals, negotiations, representations and agreements. Seller shall not be
bound by any additional, different or inconsistent terms in Buyer's purchase order or other documents from Buyer, and shipment of
goods or the provision of services pursuant to a purchase order of Buyer that contains additional, different or inconsistent terms does
not constitute acceptance of such terms. No conditions, understandings or agreements purporting to waive, modify or vary the terms
hereof will be binding unless hereafter made in writing and signed by an authorized representative of each party. Buyer may not
assign its rights or delegate its duties hereunder without the prior written consent of Seller.
3. PRICE AND PAYMENT TERMS: Unless otherwise agreed in writing by a duly authorized representative of Seller, all prices are
quoted in U.S. Dollars, and all invoices Issued by Seller and payments made by Buyer shall be in U.S. Dollars. Subject to Seller's
prior written credit approval, payment terms for domestic Orders are net thirty (30) days from date of Seller's invoice. Terms for
payment for domestic Orders are 25% due upon purchase order receipt, 450A due upon approval of drawings for fabrication or upon
approval to purchase materials, 20% upon completion of fabrication, 10% upon approval to ship. Any shipping fees will be Included in
the final invoice. Unless otherwise agreed in writing by a duly authorized representative of Seller, payment terms for international
Orders shall be either cash in advance by wire transfer, or by an irrevocable letter of credit confirmed with Seller's bank. Buyer hereby
waives any right of setoff against amounts due Buyer from Seller. All amounts due to Seller but not paid by Buyer on the due date
shall bear interest payable at a rate equal to one and one-half percent (1.5%) of the outstanding balance per month. Interest shall
accrue on past due amounts as of the date on which such amounts become due until the date Seller receives payment from Buyer.
Buyer shall also be liable to Seller for any expenses incidental to collection of past due amounts, including reasonable attorneys' fees
and court costs.
4. TAXES: Any tax, duty or other governmental charge upon the sale and/or shipment of the goods and/or provision of services
herein specified or hereafter imposed by federal, state, provincial or local authorities shall be added to the quoted price and paid by
Buyer.
5. DELIVERY, TITLE, and RISK OF LOSS: Product shipment dates are based upon Self's reasonable judgment, are subject to
production limitations and factory schedules, and are not guaranteed. Unless agreed otherwise by Seller in writing, all domestic
shipments shall be delivered F.O.B. at Seller's shipping dock. Ali shipments to locations outside the United States shag be arranged
by the Buyer, in accordance with any local, state, federal or international codes or laws. Risk of loss and title to Goods shall pass upon
such delivery. If Seller prepays shipping, insurance, or other related charges, Buyer agrees to reimburse Self promptly for such
charges. i
6. ;MODIFICATION: No modification) or changes tj Buyer's Order shall be binding unless and until Sellier consents to such
modifications In writing. As a result of any such modification, Seller may modify the price, payment terms and time of production and
delivery in its sole discretion.
ll I
s6js
TECHNICAL PROPOSAL SST6-038 Rl 5/17/2016
ENGINEERING I FA13WATION l AUTOMATION
7. WARRANTIES: Seller warrants that all Goods delivered under Buyer's Order shall be free from defects in material and
workmanship for a period of eighteen (18) months from the date of original shipment, or one (1) year from the date of installation,
whichever first occurs. Seller warrants all Support Services for sixty (60) days from completion unless otherwise mutually agreed by
independent Service contract This warranty shall not apply to Goods that, upon examination by Seller, are found to have been (a)
mishandled, misused, abused, or damaged by Buyer or others, (b) altered from their original state, (c) repaired without Seller's prior
written approval, or (d) stored, installed, operated, or maintained in a manner inconsistent with Seller's Instructions. Buyer shall
promptly notify Seller of any non-conformance or defects in Goods, and provide Seller a reasonable opportunity to Inspect such
Goods. Equipment obtained from third parties shall bear the warranty of their manufacturer. This warranty shall not apply to defects
attributed to normal wear and tear. Seller, at Its sole option, may either repair or replace defective Goods, In the case of deficient
Support Services, Seller may re -provide such Support Service. Such repair, replacement, credit, and re -performance by Seiler shall
be Buyer's sole remedy for defective Goods and Support Services. Under no circumstances is Seller liable for recall, retrieval,
removal, dismantling, re -installation, redeployment, or re -commissioning of any defective Goods or any costs associated therewith
Including. The warranty period for repaired or replaced Goods or re -provided Support Services shall be the unexpired portion of the
original warranty period. THESE EXPRESS WARRANTIES, INCLUDING THE REMEDIES SET FORTH HEREIN, ARE EXCLUSIVE
AND ARE IN LIEU OF ANY AND ALL OTHER WARRANTIES, EXPRESS OR IMPLIED. NO WARRANTY OF MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE IS INTENDED OR GIVEN. IN THE CASE OF GOODS OTHER THAN THOSE OF
SELLER'S OWN MANUFACTURE, SELLER MAKES NO WARRANTIES, EXPRESS, STATUTORY, OR IMPLIED.
8. REMEDIES OF BUYER: Buyer's exclusive remedy is expressly limited, at Seller's option, to replacement of (at the F.O.B. shipping
point) or repayment of the price paid for, the goods or services with respect to which damages are claimed. Failure by Buyer to give
notice of claim within 30 days from the date of delivery or provision of services, or the date fixed for delivery or provision of services,
as the case may be, will constitute a waiver by Buyer of all claims of any kind arising as a result of such delivery, non-delivery or late
delivery.
9.INDEMNIFICATION: Each Party (the 'Indemnifying Party') agrees to indemnify, defend, and hold harmless the other Party, its
officers, directors, and employees (the "Indemnified Party") from and against any and all liabilities, losses, expenses, liens, claims,
demands, and causes of action ("Claims") for death, personal injury, or property damage arising out of any negligent act or omission
of the Indemnifying Party In the performance of Buyer's Order, except to the extent such Claims are contributed to by (a) the
negligence or willful misconduct of the Indemnified Party or of any third parties. Buyer agrees to indemnify, defend, and hold harmless
Seller, its officers, directors, and employees for any and all Claims, including Claims asserted by third parties, related to any Goods
manufactured or Services performed in whole or in part to Buyer's designs or attributed to equipment, Information, or materials
furnished by Buyer to Seller. The Indemnified Party agrees to (a) notify the Indemnifying Party in writing of any Claims as soon as
reasonably practicable, (b) allow the Indemnifying Party to control the defense of any such Claim and related settlement negotiations,
and (c) reasonably cooperate with the Indemnifying Party in such defense.
10. LIMITATION OF LIABILITY: Any Liability for consequential and incidental damages is expressly disclaimed. Seller's liability in all
events is limited to, and shall not exceed, replacement of the product or the purchase price paid for such product.
11. CANCELLATION: If the buyer cancels the order for any reason other than Seller's breech, the cancellation fee schedule is the
indicated percent of the full purchase order amount as follows: 25% prior to release of approved drawings, 35% after approved
drawing have been released for fabrication, 75% if major material purchase has occurred, 100% at start of production, 110% after
completion— equipment will be scrapped and disposed of.
12. COMPLETE AGREEMENT: These Terms and Conditions of Supply of Goods and Services (including Seller's Special Terms and
Conditions, as applicable) and Buyer's Order (as accepted by Seller In accordance with the terms herein), including any applicable
specifications, statement of work, or other applicable documents constitute the entire agreement between the Parties and supersede
any prior oral or written agreements, commitments, understandings, or communications with respect to the subject matter of Buyer's
Order.
13. FORCE MAJEURE: Any delay or failure of Seller to perform its obligati sunder Buyer's Order shall be excused if such delay or
fall re is the result of an briforeseeable event or occurrence beyond th reasonable con iof Seller, and without its fault or
negligence, including,ut not limited to, acts of God, actions by any go ental authority,) terrorism, fires, floods, windstorms,
explosions, riots, natural disasters, wars, sabotage, labor problems (including lockouts, strikes, and slowdowns), Inability to obtain
Powe', utilities, materials, labor, equipment, transportation, or court injunction.
12
st&s
TECHNICAL
ENGINEERING I FABRICATION I AUTOMATION
PROPOSAL SST6-038 Rl
5/17/2016
14.SEVERABILITY: If any term, condition, or provision herein is invalid, ineffective, or unenforceable under present or future laws,
then the remainder of the terms, conditions, and provisions shall remain in full force and effect, and shall in no way be affected,
impaired, or invalidated.
15.WAIVER; REMEDIES; COSTS: None of the Sections, terms, conditions, or provisions herein shall be waived by any act or
knowledge on the part of Seller, except by written instrument signed by a duly authorized representative of Seller. The waiver by
Seller of any term, condition, provision, or right hereunder or the failure to enforce at any time any of the terms and conditions herein,
or any rights with respect thereto, is not a continuing waiver or a waiver of any other rights, or of any material breach or failure of
performance of Buyer. The remedies herein reserved or created for Seller shall be cumulative, and additional to any other or further
remedies provided at law or in equity. Seller may remedy any breach of the terms or conditions hereof without waiving the breach
remedied, or without waiving any other prior or subsequent breach. Buyer shall pay all Seller's costs and expenses, including
attorney's fees, incurred by Seller in exercising any of its rights or remedies hereunder or enforcing any of the terms or conditions
hereof.
16. ASSIGNMENT: Neither Party may assign, delegate, sublicense, or transfer, whether by operation of law or otherwise, their
obligations or rights hereunder without the other Party's written consent and any assignment, delegation, sublicense, or transfer (a)
without such written consent is void and of no effect and, (b) If consent is given, shall be binding upon, and inure to the benefit of the
successors and assigns of the Parties. Notwithstanding any provision of these terms and conditions, Seiler may, without Buyer's
consent, subcontract work to be performed under Buyer's Order or assign Buyer's Order to a parent, subsidiary, or affiliate company
of Seller. In addition, without securing such prior consent, Seller shall have the right to assign Buyer's Order to any successor, by way
of merger or consolidation, or the acquisition of substantially all of the entire business and assets of Seiler relating to the subject
matter of Buyer's Order, provided that such successor shall expressly assume all of the assignor's obligations and liabilities under
Buyer's Order, and provided further that Seller shall remain liable and responsible to Buyer for the performance and observance of all
such obligations.
17. APPLICABLE LAW AND ARBITRATION: The construction of these terms and conditions of sale and the rights and obligations of
the parties hereunder WILL BE GOVERNED BY THE LAWS OF THE STATE OF GEORGIA, excluding any choice of law rules which
may direct the application of the laws of any other Jurisdiction. Neither the orders, nor the rights and obligations of Seller and Buyer
arising from these terms and conditions, will be governed by the provisions of the United Nations Convention on Contracts for the
International Sales of Goods, application of which is hereby excluded pursuant to Article 6 thereof. The parties shall attempt to resolve
any dispute, controversy, or claim arising under or relating to Seller's Offer or Buyer's Order, or to a material breach, Including Its
Interpretation, performance, or termination. If the Parties are unable to resolve such dispute, either Party may refer the dispute to
arbitration. The arbitration shall be conducted In English and In accordance with the Commercial Rules of the American Arbitration
Association, which shall administer the arbitration and act as appointing authority. The arbitration, including the rendering of the
decision and/or award, shall take place in Forsyth County, Georgia, United States of America, and shall be the exclusive forum for
resolving the dispute, controversy, or claim. The arbitrator shall make the final determination as to any discovery disputes between the
Parties. Examination of witnesses by the Parties and by the arbitrator shall be permitted. A written transcript of the hearing shall be
made and furnished to the Parties. The cost of this transcript shell be borne equally by the Parties. The award or decision of the
arbitrator shall state the reasons upon which the award or decision is based, and shall be final and binding upon the Parties. The
prevailing Party shall be entitled to compensation for the expense of the arbitration, including, but not limited to, the award of
attorneys' fees, at the discretion of the arbitrator. Both Parties waive their right to any appeal under any system of law. The award
shall be enforceable before any court of competent Jurisdiction upon the application to such court by either Party. The arbitrator shall
have no authority to award any of the types of damages excluded hereunder, and shall be so instructed by the Parties.
13
John Webster
From: Pete Singleton <Pete@skidsolutions.com>
Sent: Thursday, March 03, 2016 2:48 PM
To: John Webster
Subject: RE: S&S Technical - filter / meter skids Form Submission - Request a Quote
Attachments: SST6-038.pdf
John,
Please find the proposal for your project. If we can help with the job let me know. I appreciate the opportunity. We did
look and agree the dual run Coriolis meters will perform better in this instance.
Pete
From: John Webster f1
1MAI oiJWebster�ci.hutchin a 11?IJs�us]
.�. ..,,
Sent: Thursday, February 18, 201610:46 AM
To: Pete Singleton <Pete0skidsolutions.com>
Subject: RE: S&S Technical - filter/ meter skids Form Submission - Request a Quote
PETE,
I HAVE A DRAWING OF THE FILTER SKID. DOESN'T HAVE TO BE EXACTLY THE SAME BUT WE ALREADY
HAVE 5 OF THESE IN PLACE. 1 HAVE ENCLOSED DRAWINGS OF A PRVVIOUS CORIOLIS METER SKID THAT
HLrrCHINSON UTILITIES HAS INSTALLED. THIS IS A SINGLE RUN SET AND DOES NOT HAVE THE
ACTUATORS INSTALLED.
HOPE THESE HELPI I
JOHN' i/9/EBSTER
RGDP
DIRECTOR NATURAL GAS DIVISION
HUTCHINSON UTILITIES
(320) 234.0507 OFFICE
(320) 583-9323 MOBILE
(320) 587-4721 FAX
From: Pete Singleton �mailbo:Peteftskldsolutiorrs
Sent: Thursday, February 18, 2016 9:14 AM
To: John Webster
Subject: Re: S&S Technical - filter / meter skids Form Submission - Request a Quote
John
Do you have any drawings of this system we can have?
Pete Singleton
VP Strategic Markets
S&S Technical
Mobile: +1770.864.7909
Main: +1678.867.7024
E-mail: petetaIskidsolutions.com
On Feb 12, 2016, at 1:35 PM, John Webster <JWebster(@ci.hutchinson.mn.us> wrote:
PETE,
HUTCHINSON UTILITIES WILL BE INSTALLING A LOW FLOW INTERCONNECT STATION THIS
SUMMER. I HAVE ATTACHED INFORMATION REGARDING THE FILTER SKID, METERING SKID
AND ELECTRONICS BUILDING THAT WE REQUIRE. WE HAVE LOOKED AT THE FLOW RATES
AND AM THINKING THIS WILL REQUIRE DUAL CORIOLIS RUNS TO MAINTAIN CUSTODY
TRANSFER ACCURACY AT LOW FLOWS. NOT SURE THAT AN ULTRASONIC WILL HANDLE
THIS.
PLEASE TAKE A LOOK AT THE ENCLOSED SPECS AND LET ME KNOW IF YOU NEED
ADDITIONAL INFORMATION.
THANK YOU,
.JOHN WEBSTER
RGDP
DIRECTOR NATURAL GAS DIVISION
HUTCHINSON UTILITIES
(320) 234-0507 OFFICE
(320) 583.9323 MOBILE
(320) 587-4721 FAx
From: Pete Singleton fmalito:Pe skidsclluHons.comI
Sent: Friday, February 12, 20161:29 PM
To: John Webster
Subject: S&S Technical - filter / meter skids Form Submission - Request a Quote
John,
This is Pete Singleton at S&S. I have your inquiry below and be happy to help. Do you have any other
details you can share at this point? Be glad to give you a call when it makes sense. Wanted to let you
know we have the inquiry.
Pete Singleton
dmage001.png>
Pete Singleton / VP Strategic Markets
(0): 678-867-7024 ext: 231
(C): 770-864-7909
(E): �t ;skidsolutions.com.
www.skidsotutions.com
S&S Technical Inc.
1900 Grassland Parkway
Alpharetta, GA. 30004
This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to
whom they are addressed. if you have received this email in error please notify the system manager. This message
contains confidential information and is intended only for the individual named. if you are not the named addressee
you should not disseminate, distribute or copy this e-mail. Please notify the sender immediately by e-mail if you have
received this e-mail by mistake and delete this e-mail from your system. If you are not the intended recipient you are
notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is
strictly prohibited.
Reply -To: Jwebsterrifti.hutchinson.mn.us
Company Name: Hutchinson Utilities
Contact Name: John Webster
Phone Number: (320) 234-0507
Email Address: iwebstertMci.hutchinson.mn.us
Industry: Pumping and Metering
Message: I am in need of pricing on a filter skid and a metering skid for a natural gas pipeline
interconnect station.
(Sent via LPG NGL-Truck&Railcar LoadiniZIUnloadinv; Transloadine Solutions. LACT Units.
Meterinrr.Skids. Chemical Meterine/Feed)
<Scanned from a Xerox multifunction device.pdf>
3
HUTCHINSON UTILITIES COMMISSION REQUISITION FORM
Supplier: NELSON TECHNOLOGIES INCORPORA111OTo: HUTCHINSON UTILITIES COMMISSION Requisition No. 006709
9701 VALLEY VIEW ROAD 175 MICHIGAN ST SE
EDEN PRAIRIE, MN 55344 HUTCHINSON, MN 55350
Phone: 952-835-1895 Phone: 320-587-4746
Fax: 952-8354614 Fax: 320-587-4721
I Item # I 0tv. I (Part Num.) Description
1 I 1 1(000-00000)
Line Remarks: RTU Building Skid, Insulated Floor and Walls,
Interior Walls, Insulated Steel Door with Panic Hardware,
Bulkhead for Tubing Entrance, with AC/Heat, Load Center,
MicroMotion Startups for Coriolis Meters, FlowBoss Flow
computer, MicroMotion Specific Gravity Meter, Includes Scalable
Pressure Transmitter, Temperature Transmitter, Platinum RTD
Sensor.
I Request Date I Acct # I WO # I Unit Price I Per I Item Total I
108/01/2016 11073690100 161601 I 17,368.05 I Each I 17,368.05 I
Requisitioned By: WEBSTER, JOHN
Approved By:
Sales Tax 1,194.05
Special Charges 0.00
Total 18,562.10
Date: 05/09/2016
Date:
Page 1 of 1
HUTCHINSON UTILITIES COMMISSION REQUISITION FORM
Supplier. NELSON TECHNOLOGIES INCORPORATE9To: HUTCHINSON UTILITIES COMMISSION Requisition No. 006710
9701 VALLEY VIEW ROAD 175 MICHIGAN ST SE
EDEN PRAIRIE, MN 55344 HUTCHINSON, MN 55350
Phone: 952-835-1895 Phone: 320-587-4746
Fax: 952-835-4614 Fax: 320-587-4721
Item #I cxv. I (Part Num.) Description
1 I 1 I (000-00000)
Line Remarks: Meter Skid, Dual Meter Runs, Actuated Tube
Switching Valves, 4" Bypass Run. Two (2) Doors with Panic
Hardware, Bulkhead for Tubing and Electrical Stub -out, Two (2)
Louvered Vents, Walls and Floor Spray Insulated, Two (2) Coriolis
Meters, 0.10" and 0.50", Two (2) Transmitters, Specific Gravity
Meter w/Enclosure, Fisher Flo Boss Flow computer, Two (2) 1/2"
Actuated Tube Switching Ball Valves Complete with Solenoid and
Limit Switch, Supply Gas System for Tube Switching Valves, 120
volt Heater Complete with HP and LP Regulators, 4" Inlet 600
ANSI RFFE, 4" Outlet 600 ANSI RFFE, 4" Inlet Header, 4" Outlet
Header, 4" Bypass Run, Ten (10) SS 114", 112" and 314" Ball Valves
Installed, Tubing, Wiring, and EMT Conduits as Required. Teflon
Blue coated Studs and Nuts, Piping and Skid Painted White (One
coat Shop Primer and One Coat of Enamel Paint), Supports
Included for Pipe and Gas Supply System Hydro Test Piping to
2220 psig for 4 Hours, X -Ray all Piping to API 1104, MTR's
Provided.
Reauest Date I Acct # I WO # I Unit Price I Per I Item Total
108/01/2016 11073690100 161601 I 98,999.73 I Each ( 98,999.73
Page 1 of 2
HUTCHINSON UTILITIES COMMISSION REQUISITION FORM
Supplier: NELSON TECHNOLOGIES INCORPORATEDTo: HUTCHINSON UTILITIES COMMISSION Requisition No. 006710
9701 VALLEY VIEW ROAD 175 MICHIGAN ST SE
EDEN PRAIRIE, MN 55344 HUTCHINSON, MN 55350
Phone: 952-835-1895 Phone: 320-587-4746
Fax: 952-835-4614 Fax: 320-587-4721
Sales Tax 6,806.23
Special Charges 0.00
Total 105,806.00
Requisitioned By: WEBSTER, JOHN Date: 05/09/2016
Approved By: Date:
Page 2 of 2
HUTCHINSON UTILITIES COMMISSION REQUISITION FORM
Supplier: NELSON TECHNOLOGIES INCORPORATE DTO: HUTCHINSON UTILITIES COMMISSION Requisition No. 006711
9701 VALLEY VIEW ROAD 175 MICHIGAN ST SE
EDEN PRAIRIE, MN 55344 HUTCHINSON, MN 55350
Phone: 952-835-1895 Phone: 320-587-4746
Fax. 952-835-4614 Fax: 320-587-4721
item # I Qty. I (Part Num.) Description
1 1 1 j(000-00000)
Line Remarks: Filter Skid, Nowata Horizontal Fitter, 4" Inlet and
Outlet Flanges, 3" Filter Connections and 4" Bypass. Nowata
Horizontal Dry Gas Filter (GZAC3C144W3CDN), Cone Strainer
Installed in Bypass Run, 4" Inlet 600 ANSI RFFE, 4" Outlet 600
ANSI RFFE, 4" Inlet Header, 4" Outlet Header, 4" Bypass Run,
Three 1/2" SS Ball Valves Installed, Teflon Blue Coated Studs and
Nuts, Piping and Skid Painted White (One Coat Shop Primer and
One Coat of Enamel Paint) Hydro Test All Piping to 2220 psig for
4 Hours, x -Ray Piping to API 1104, MTR"s Provided.
I Request Date I Acct # I WO # I Unit Price I Per I Item Total I
108/0112016 11073690100 161601 1 37,754.40 1 Each ' 37,754.40 1
Requisitioned By: WEBSTER. JOHN
Approved By:
Sales Tax 2,595.62
Special Charges 0.00
Total 40,350.02
Date: 05/09/2016
Date:
Page 1 of 1
HUTCHINSON UTILITIES COMMISSION
OPERATING AGREEMENT
NATURAL GAS FACILITIES
Heartland Corn Products
06/29/2016
This document sets forth the terms and conditions of service for operation and maintenance of
Heartland Corn Product's natural gas metering, regulating and fuel line facilities provided to
Heartland Corn Products by Hutchinson Utilities Commission.
NATURAL GAS FACILITIES OPERATING AGREEMENT
THIS NATURAL GAS FACILITIES OPERATING AGREEMENT ("Agreement") is
made and entered into on this 29th day of June, 2016, by and between Heartland Corn Products
("Owner") with offices located at 53331 State Highway 19, P.O. Box A, Winthrop, Minnesota,
55396 and Hutchinson Utilities Commission ("Operator") a Minnesota municipal utility located
at 225 Michigan St. SE, Hutchinson, Minnesota, 55350. Owner and Operator shall hereinafter
sometimes be referred to separately as "Party" or jointly as "Parties."
WITNESSETH:
WHEREAS, Owner has constructed or is constructing the Natural Gas Facilities (as
hereinafter defined);
WHEREAS, Owner desires to retain Operator to operate the Natural Gas Facilities on
behalf of Owner, and Operator is willing to provide said services on the terms and conditions set
forth herein.
NOW, THEREFORE, in consideration of the premises, mutual covenants, conditions and
agreements herein contained the parties hereto, intending to be legally bound, hereby agree as
follows:
ARTICLE I: DEFINED TERMS
Section 1.1 Definitions.
The defined terms used in this Agreement shall, unless the context otherwise requires, have the
meanings specified in this Article I.
"Agreement" means this Natural Gas Facilities Operating Agreement, as the same may
from time to time be amended with written consent of Owner and Operator.
"Business Day" means any day except Saturday, Sunday or Federal Reserve Bank
Holidays.
"Commencement Date" shall mean "Nine a.m. Central Clock Time" on July 1, 2016.
"Emergency" means any suspected or actual abnormal condition that has already caused,
(*aanana and Mainlenanx Agrcemean 1
Namm, r— Fnilili.
H -11l d Cam Fmdw,
Jahn Welwa
or represents an imminent threat to cause, Facility failure or damage, danger to or loss of
life, pollution, or any hazardous condition.
"Facility" or "Facilities" means the natural gas metering and regulation equipment
belonging to Owner, including all apparatuses and fuel lines thereto, located at the
terminus of the Fairfax pipeline facilities, at the Owner's site.
"Gas" shall mean natural gas, manufactured, artificial or synthetic gas, or any mixture or
combination thereof.
"Gas Day" shall mean a period beginning and ending at 9:00 a.m., Central Clock Time.
The reference date for any day shall be the date of the beginning of such day.
"Governmental Authority" means (i) the United States of America, (ii) any state, county,
parish, municipality or other governmental subdivision within the United States of
America, and (iii) any court or tribunal or any governmental department, commission,
board, bureau, agency or other instrumentality of the United States of America or of any
state, county, parish, municipality or other governmental subdivision within the United
States of America.
"Law" means any applicable statute, law, ordinance, regulation, rule, ruling, order,
decree, writ, injunction, judgment or other official act of or by any Governmental
Authority.
"Monthly Operating Fee" means the fee for Operator performing operations of the
Facilities and Routine Work.
"Operations" means all work or services required to be furnished or performed by
Operator pursuant to this Agreement.
"Operator" means Hutchinson Utilities Commission and its permitted successors and
assigns hereunder.
"Owner" means Heartland Corn Products and its permitted successors and assigns
hereunder.
Operno ona and Maintenanm Agrecment
N.t—: C.ae F-hnes
HcoAand Co. Pr dum,
John Wchcttt
"Permits" means all licenses, permits, certificates, orders, approvals and authorizations of
any Governmental Authority necessary for or obtained in connection with operation of
the Facilities or performance of the Operations.
"Person" means any individual, firm, corporation, partnership, joint venture, association,
trust or other entity or organization, including a government or political subdivision or an
agency or instrumentality thereof.
"Routine Work" includes day-to-day operations, maintenance, testing and repair included
in the Monthly Operating Fee and more particularly defined in Exhibit C of this
Agreement.
"Non -Routine Work" includes work not included in the Monthly Operating Fee, but shall
be provided on an as -needed basis. Said services and fees are set forth in Exhibit D.
"Year" or "year" means a period of 12 consecutive months commencing with July 1 and
ending on the following June 30.
Section 1.2 References. Gender. Number.
Unless the context requires otherwise, all references in this Agreement to an "Article," "Section"
or "Subsection" shall be to an Article, Section or Subsection of this Agreement, and the words
"this Agreement," "hereof," "hereunder," "herein," "hereby," or words of similar import shall
refer to this Agreement as a whole and not to a particular Article, Section, subsection, clause or
other subdivision hereof. Whenever the context requires, the words used herein shall include the
masculine, feminine and neuter gender, and the singular and the plural.
ARTICLE II: RESPONSIBILITIES OF OPERATOR
Section 2.1 General Resoonsibilities.
(a) General.
Operator is hereby appointed to perform the Operations according to prudent practices
generally followed by the gas pipeline industry under similar circumstances. To the
Gpuatians and Maintenance Agrmnot
Natural Gas Foeihtics
Hcanland Coca N dw,
.John Wdwa
extent necessary to carry out its duties hereunder, Operator certifies that it is qualified
under the Operator Qualification Program as required by the federal Department of
Transportation and the Minnesota Office of Pipeline Safety. Operator shall provide
Owner with the services required for the operation, testing, maintenance and repair of the
Facilities as more fully described below and in Exhibit C and D. Owner and Operator
shall have unrestricted access to the Facilities. It is expressly understood and agreed that
in the performance of its obligations under this Agreement, Operator is and shall at all
times be an independent contractor. Operator, as an independent contractor, shall be
solely responsible for its employees and equipment. Owner acknowledges that the
Operations are dependent upon Owner providing Operator access to the Facilities.
(b) Routine Work.
On and after the Commencement Date, Operator shall perform or cause to be performed
all Routine Work for the Facilities, including but not limited to, operation, repair,
improvement, maintenance, alteration, inspection, testing, protection and other operations
and activities with respect to the Facilities as are reasonably necessary to maintain the
Facilities in a "first-class operating condition" in accordance with the federal safety and
maintenance standards promulgated under 49 CFR Part 192 and the regulations of the
Minnesota Office of Pipeline Safety. The Routine Work is described in greater detail in
Exhibit C.
(c) Non -Routine Work.
.Operator will perform all Non -Routine Work as to the Facilities, in accordance with this
Section. Operator will recommend Non -Routine Work as described in Exhibit D
attached hereto when, in Operator's opinion, the condition of the Facilities might impair
reliability, or when it is otherwise deemed necessary or preferable, consistent with
prudent practices generally followed by the gas pipeline industry under similar
circumstances ("Recommended Non -Routine Work"). Operator will notify and provide
recommendations to Owner as soon as practical after identifying the need for
Recommended Non -Routine Work. Owner will review and act on Operator's
Opcmunns and Mamtcnanx AZm ntmt 4
Natural Lias Facilities
Harland Cnnt Pmd m
lnhn Wd.1"
Recommended Non -Routine Work as soon as practical after notification. Owner will not
unreasonably withhold or delay its approval of any reasonable Operator Recommended
Non -Routine Work concerning a condition affecting the Facilities that might impair the
reliability or safety of the Facilities. In the event that Owner fails to approve Operator
Recommended Non -Routine Work, then Operator shall bear no responsibility or liability
whatsoever for any claims, losses, costs, expenses, demands, fines, personal injury, or
property damage arising from or related to the Facilities connected with such
Recommended Non -Routine Work.
(d) Emergency Work.
Operator will perform all Emergency maintenance and repair of the Facilities consistent
with prudent practices generally followed by the gas pipeline industry under similar
circumstances. Operator will notify Owner of any Emergency condition affecting the
Facilities promptly after Operator learns of such condition and will consult with Owner,
as far as practical, concerning the actions that are necessary. If Owner fails to respond or
if Operator is otherwise unable to consult with Owner, the Operator shall take those
actions that Operator believes are necessary consistent with prudent utility practices and
will contact Owner as soon as possible after the fact.
(e) Scheduling.
To the extent reasonably possible, the performance of repair or maintenance that affects
the operations of the Facilities shall be scheduled to be performed only at times
acceptable to Owner. Except for Emergency or unplanned work, in the event it is
necessary to either interrupt or curtail the gas supply or to otherwise impose abnormal
operating conditions on the Facilities, Owner shall be notified in advance and an
agreement must be reached as to the time scheduled for such work.
(f) Work by Others.
If any part of the Operations is dependent upon the quality and completeness of work
performed under another contract unrelated to Operator, Operator shall not be responsible
(Mvalnmc and Maimcnanm Agrmmal
Natural frac Facilid.
Hcanland Conn PradnaR
Jahn Wetw"
if the work performed under the other contract is defective or unsuitable and such
condition affects the timing, scheduling or quality of the Operations performed by
Operator hereunder.
Section 2.2 Personnel.
Operator may employ or, contract for, the services of and be responsible for the supervision of
Persons (including consultants and professional, service or other organizations) reasonably
required by Operator to perform the Operations in an efficient and prudent manner. The number
of Persons used by Operator in conducting the Operations, their hours of work and their
compensation for services performed shall be determined by Operator. All employees and other
personnel provided by Operator pursuant to this Agreement shall be the employees or
independent contractors of Operator and in no event shall such employees or other personnel be
deemed employees or contractors of Owner. On or before the Commencement Date, Operator
shall designate to Owner in writing a representative who shall be authorized to act on behalf of
Operator as to the Operations and with whom Owner may consult at all reasonable times.
Operator may change its representative by written notice to Owner.
Section 2.3 Operator Warranties.
Operator warrants and represents to Owner as follows: Operator shall perform the Operations,
and shall require all contractors, subcontractors and materialmen furnishing labor, material or
services for the Operations to perform their services and carry out their responsibilities, in a
diligent, safe and efficient manner in accordance with good workmanlike and prudent practices
generally followed by the gas pipeline industry under similar circumstances, but such practices
shall not be less than as may be specifically required by this Agreement. In carrying out such
responsibilities, Operator shall comply, and shall use its reasonable efforts to require all
contractors, subcontractors and materialmen to comply, with all Laws of Governmental
Authorities having jurisdiction. All policies and procedures to be developed by Operator
hereunder shall be available to Owner for its review at Operator's office during normal business
hours.
(1Fcmtinna and Maintenance Agreement /
Nalaml faa Funhnca b
",."[and Com Frndncta
John W.W.
THESE WARRANTIES ARE EXCLUSIVE AND GIVEN IN LIEU OF ALL OTHER
WARRANTIES WHETHER STATUTORY, EXPRESS, OR IMPLIED (INCLUDING ANY
IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, NONINFRINGEMENT OF THIRD PARTY INTELLECTUAL PROPERTY
RIGHTS, OR ANY WARRANTY ARISING FROM A COURSE OF DEALING, USAGE, OR
TRADE PRACTICE).
Section 2.4 Owner Warranties.
Owner warrants and represents to Operator that the information it supplies to Operator upon
which the Operations may be based is true and correct to the best of Owner's knowledge.
Section 2.5 Monthly Fee for Routine Work.
With respect to each calendar month from and after the Commencement Date, Owner shall pay
to Operator the Monthly Operating Fee for performing such Routine Work.
The Parties shall review the Monthly Operating Fee on an annual basis, starting on July 1, 2017
and on each July 1 thereafter, and reserve the right to modify the fees upon mutual agreement.
Section 2.6 Comnensation for Non -Routine Work.
Except for any non -routine expenditure that results from Operator's breach of this Agreement,
negligence, or willful misconduct, Owner shall bear the cost of any direct out-of-pocket
expenditure reasonably incurred by Operator for Non -Routine Work performed in connection
with the Facilities, including labor and materials, plus Operator's overhead of 10 percent (10%)
of such costs. Any Non -Routine Work that is in excess of $500.00 per event and that is not the
result of an Emergency, will be reviewed and approved by the Owner in advance, subject to
Section 2.1(c). "Non -Routine Work" is defined in more detail in Exhibit D attached hereto.
Section 2.7 Payment.
On or before the fifteenth (15th) day of each calendar month, Operator shall render an
invoice to Owner indicating all fees payable under this Agreement for the preceding
Operations and Maintenance Agreement
Nannal fisc Facilities 7
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calendar month. Payment is due from Owner on or before the fifteenth day following the
date the bill is issued by Operator. A late payment charge of one and one-half percent per
month, or the legally authorized maximum interest rate, whichever is lower, shall be
levied on any unpaid balances.
Section 2.8 Owner Duties.
Owner shall fully cooperate with Operator in performing Operations. Owner hereby
grants Operator the non-exclusive right to access and use the Facilities, for purposes of
and subject to the terms of this Agreement.
ARTICLE III: TRANSFERS OF RESPONSIBILITIES OF OPERATOR
Transfer of Responsibilities.
(a) Upon the expiration of this Agreement or the removal of Operator under Section 7.2, the
Operator shall assign, transfer and deliver to the Person selected by Owner to succeed
Operator (or to such other Persons as Owner shall direct) (1) possession and control of
the Facilities and all Operations and (2) to the extent requested by Owner, all contracts,
warranties, operating and maintenance manuals, designs, drawings, operational plans,
proprietary information and operational rights obtained or entered into by Operator
exclusively with respect to the Facilities or exclusively in connection with the
Operations, in each case without giving rise to any penalty, charge, restriction, lien,
security interest, encumbrance, cancellation, termination, acceleration or change in terms
not previously approved by Owner. Operator shall fully cooperate with Owner in transfer
of Operations hereunder to Owner or a successor operator designated by Owner. Upon
termination, Operator shall return to Owner all original records and any materials
purchased by Operator and paid for by Owner, such as pretested pipe, valves and other
miscellaneous materials and supplies.
(b) As soon as practicable after the date on which the Operator is required to transfer its
responsibilities as provided in Article III (a), Owner may conduct an audit and inventory
of the Facilities and all of Owner's assets and properties operated, managed or controlled
by Operator. Such audits and inventory shall be used in the return of and the accounting
Operalions and Mainlcnan" AWMMCnl
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for the Facilities and Owner's properties and assets by Operator for the purposes of the
transfer of responsibilities under Article III. All costs and expenses incurred in
connection with such audits and inventory shall be borne by Owner.
ARTICLE IV: INSURANCE,
Section 4.1 Owner's Insurance.
Owner shall procure and maintain in full force and effect, at the Owner's cost, all risk property
insurance in an amount equal to the full insurable value of the Facilities.
Section 4.2 Operator's Insurance.
Operator shall procure and maintain in full force and effect at the Operator's cost, the following
insurance coverage:
(a) Worker's Compensation and Employer's Liability insurance in accordance with the laws
of Minnesota with limits for Employer's Liability of $1,500,000 per accident or disease,
aggregate as disease.
(b) Business automobile liability insurance covering owned, non -owned and hired vehicles
with minimum combined single limits for bodily injury and property damage for any
single loss of $2,000,000.
(c) Commercial general liability insurance with completed operations coverage for claims
alleging bodily injury including death and damage to property of others, with a combined
single limit of $2,000,000 for bodily injury and property damage per occurrence and
$3,000,000 in the aggregate.
(d) Excess liability insurance for claims alleging bodily injury including death and damage to
property with a combined single limit of $5,000,000 for bodily injury and property
damage per occurrence and in the aggregate.
Section 4.3 Other Insurance Requirements.
Each Party shall be listed as an additional insured with respect to the insurance coverage required
under this Article IV. All insurance policies shall be endorsed to provide that all insureds and
Opaalinns and Mamlcnanm Aarm-1 9
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additional insureds hereunder be given thirty (30) days' advance notice of cancellation or
material change. Within thirty (30) days of the date of this Agreement, each Party shall furnish
to the other Party certificates as evidence showing that the insurance policies to be carried in
accordance with this provision have been obtained.
Section 4.4 Maximum Liabilitv.
Operator's maximum liability is limited to a combined single limit of $1,500,000 by Minnesota
Statute.
ARTICLE V: FORCE MAJEURE
Section 5.1 Performance Excused.
If any Party is rendered unable, wholly or in part, by force majeure to carry out its obligations
under this Agreement, other than the obligation to make money payments or to furnish security,
that party shall give to all other parties prompt written notice of the force majeure with
reasonably full particulars concerning it; and thereupon, the obligations of the party giving
notice, so far as they are affected by the force majeure, shall be suspended during, but no longer
than, the continuance of the force majeure. The party claiming force majeure shall notify the
other parties of the force majeure situation within a reasonable time after the occurrence of the
facts relied on and shall keep all parties informed of all significant developments. Such notice
shall give reasonably full particulars of said force majeure, and also estimate the period of time,
which said party will probably require to remedy the force majeure. Force Majeure does not
relieve the operator of the contractual responsibilities to operate the Facilities; provided that, the
Facilities can be operated utilizing reasonable and safe methods. The affected party shall use all
reasonable diligence to remove the force majeure situation as quickly as practicable in an
economic manner. The requirement that any force majeure shall be remedied with all reasonable
dispatch, shall not require the settlement of strikes, lockouts or other labor difficulty by the party
involved, contrary to its wishes; how all such difficulties shall be handled shall be entirely within
the discretion of the party concerned.
Opemli—and Mamlcnanm Agrc wl 1 0
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Ncnnland Com 14oduda
John W.1.1a
Section 5.2 Force Maicure Defined.
The term "force imajeure", as here employed, shall mean an act of God, strike, lockout or other
industrial disturbance, act of the public enemy, war, blockade, public riot, lightning, fire, storm,
flood, earthquake, explosion, governmental action, governmental delay, restraint or inaction,
unavailability of equipment and any other cause, whether of the kind specifically enumerated
above or otherwise, which is not reasonably within the control of the party claiming suspension.
ARTICLE VI: ASSIGNMENT
Section 6.1 Assignment by Owner.
Owner may not assign all or any part of its rights or obligations under this Agreement without
prior written consent of Operator.
Section 6.2 Assisnment by Ooerator.
Operator may not assign all or any part of its rights or obligations under this Agreement without
the prior written consent of Owner. Such approvals shall not be unreasonably delayed, withheld
or conditioned.
ARTICLE VII: TERM
Section 7.1 Term.
This Agreement shall become effective on the Commencement Date and shall continue in force
and effect until "Nine a.m. Central Clock Time" on July 1, 2017, and year-to-year thereafter,
subject to termination.
(a) Owner shall notify Operator in writing ninety (90) days prior to the expiration date of this
Agreement as to Owner's desire for Operator to continue operations of the Facility.
Operator shall respond in writing to Owner within thirty (30) days of receipt of Owner's
notice and on or before sixty (60) days prior to the expiration of this Agreement
regarding the Operator's desire to continue as Operator.
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Section 7.2 Default and Termination.
Upon failure by either Party in the performance of any provision, condition or requirement
herein, the other Party may give notice in writing to the defaulting party specifying the default.
Unless such default is cured within thirty (30) days following receipt of such notice to the
defaulting Party, or if such default is susceptible of being cured and such cure cannot be
completed with such thirty (30) days period, then if the cure thereof is not undertaken promptly
upon receipt of such notice and diligently prosecuted thereafter, this Agreement may be
terminated within sixty (60) days of the date of the notice claiming default was written at the
option of the Party serving such notice of default.
Section 7.3 Effect of Termination.
Termination of this Agreement shall not relieve either Party from any obligation including
payments due for Operations as provided in this Agreement, accruing to the date of such
termination or relieve any Party of any liability for its breach of this Agreement. Article III shall
survive any termination of this Agreement.
ARTICLE VIII: MISCELLANEOUS
Section 8.1 Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of the State of
Minnesota without reference to the choice or conflict of law, rules or principals thereof which
would refer the matter to the laws of another jurisdiction.
Each Party shall abide by the Laws of any Governmental Authorities with jurisdiction over the
matters of this Agreement, as may be amended from time to time.
Section 8.2 Entire Agreement.
This Agreement and the Schedules and Exhibits hereto contain the entire agreement between the
Parties with respect to the subject matter hereof and there are no agreements, understanding,
representations or warranties between the parties other than those set forth or referred to herein.
(Dcmians and Mawcaancc Agrccrn m 12
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Section 8.3 Notices.
Except as otherwise specifically provided, all notices authorized or required between the Parties
by any of the provisions of this Agreement, shall be in writing, in English and delivered in
person or by registered mail or by courier service or by any electronic means of transmitting
written communications that provides confirmation of complete transmission, and addressed to
such Parties as designated below. The originating notice given under any provision of this
Agreement shall be deemed delivered only when received by the Party to whom such notice is
directed, and the time for such Party to deliver any notice in response- to such originating notice
shall run from the date the originating notice is received. The second or any response notice
shall be deemed delivered when received. "Received", for purposes of this Section with respect
to written notice delivered pursuant to this Agreement, shall be actual delivery of the notice to
the address of the Party to be notified, specified in accordance with this Section. Each Party
shall have the right to change its address at any time and/or designate that copies of all such
notices be directed to another Person at another address, by giving written notice thereof to all
other Parties.
Heartland Corn Products
53331 State Highway 19
P.O. Box A
Winthrop, MN 55396
Attention: Tim Miller
E -Mail: timm@heartlandcorn.com
Telephone No.: 507-647-5000
Hutchinson Utilities Commission
225 Michigan St. SE
Hutchinson, Minnesota 55350
Attention: John Webster
E -Mail: jwebster@ci.hutchinson.mn.us
Fax No.: 320-587-4721
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Section 8.4 Successors and Assigns.
Subject to the restrictions and requirements on assignment and transfer contained in this
Agreement, this Agreement shall be binding upon and inure to the benefit of the Parties hereto
and their respective successors and assigns.
Section 8.5 Headings.
The headings to Articles, Sections and other subdivision of this Agreement are inserted for
convenience of reference only and will not affect the meaning or interpretation of this
Agreement.
Section 8.6 Amendments and Waivers.
This Agreement may not be modified or amended except by an instrument or instruments in
writing, signed by all Parties. Any Party may, only by an instrument in writing, waive
compliance by another Party hereto with any term or provision of this Agreement on the part of
such other Party hereto to be performed or complied with. The waiver by any Party of a breach
of any term or provision of this Agreement shall not be construed as a waiver of any subsequent
breach.
Section 8.7 Schedules and Exhibit.
All Schedules and Exhibits to this Agreement are hereby incorporated by reference.
Section 8.8 Agreement for the Parties' Benefit Only.
This Agreement is not intended to confer upon any Person not a party hereto or a permitted
successor or assign of a Party any rights or remedies hereunder, and no Person, other than the
Parties or a permitted successor or assign thereof, is entitled to rely on any covenant or
agreement contained herein.
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John W.Niff
Section 8.9 Severabilitv.
If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced
by any rule of law or public policy, all other conditions and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal substance of the
transactions contemplated hereby is not affected in any adverse manner to any party. Upon such
determination that any term or other provision is invalid, illegal or incapable of being enforced,
the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the
original intent of the parties as closely as possible in an acceptable manner to the end that the
transactions contemplated hereby are fulfilled to the extent possible.
Section 8.10 Independent Contractor; No Partnership.
Operator shall perform its duties and obligations hereunder as an independent contractor, and
nothing contained herein shall be deemed to create a relationship of employer/employee,
master/servant, agency, partnership or joint venture. This Agreement is not intended to create,
and shall not be construed to create, a relationship of partnership or an association for profit
between Operator and Owner.
Section 8.11 Data Practices Act.
The Parties acknowledge that Hutchinson is subject to Minnesota Government Data Practices
Act, Minnesota Statutes, Chapter 13 (the "Act"), including limiting public access to trade secret
and other protected data. Each Party agrees to defend, indemnify, and hold harmless the other
Party, its officials, officers, agents, employees, contractors, and subcontractors from any claims
resulting from unlawful disclosure and/or use of such protected data. Heartland Corn Products
agrees to promptly notify Hutchinson if Heartland Corn Products receives a request to access the
terms of this Agreement, and to cooperate with Hutchinson if Hutchinson seeks a protective
order, at Hutchinson's expense. Heartland Corn Products agrees to promptly notify Hutchinson
if Heartland Corn Products becomes aware of any potential claim, or facts giving rise to potential
claims, under the Act. The terms of this section shall survive the termination of this Agreement.
spun inns and Mainlcnancc Agr=cni 1
Nalural fins Faoiliti.
Heartland Corn Produces
John Webster
Section 8.12 News Releases.
News releases concerning the Operations or the Facilities shall only be made in accordance with
the following guidelines, subject to the requirements of applicable laws and governmental rules
and regulations:
No public announcement or statement shall be issued by Operator unless prior to its release
Owner has been furnished with a copy of such statement or announcement and the reasonable
approval of the Owner has been obtained. Where a public announcement or statement becomes
necessary or desirable because of an Emergency as a result of activities arising under this
Agreement, Operator is authorized to issue and make such announcements or statements without
prior reasonable approval of the Owner, but shall promptly furnish Owner with a copy of the
announcement or statement.
Section 8.13 Authoritv to Enter Agreement.
Each party to this Agreement represents and warrants that it has full and complete authority to
enter into and perform this Agreement. Each person who executes this Agreement on behalf of
either party represents and warrants that it has full and complete authority to do so and that such
party will be bound thereby.
Section 8.14 Alternative Dispute Resolution.
Whenever the Parties disagree on the interpretation or enforcement of this Agreement, or upon
calculations or payments, then upon written request of either Party, representatives with
settlement authority for each Party shall meet in person and confer in good faith to resolve the
dispute. If the Parties are unable to resolve the dispute, they shall submit their dispute to
mediation pursuant to the Minnesota Civil Mediation Act. If the dispute is not resolved by
mediation, the Parties may invoke their legal remedies available at law.
Section 8.15 Counterparts.
This Agreement may be executed in counterparts, and each executed counterpart shall have the
same force and effect as an original instrument.
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ARTICLE IX: LIABILITY; INDEMNITY
Section 9.1 Indemnification by Owner.
Owner shall defend, protect, indemnify, and hold harmless Operator, and its members, directors,
officers, employees and agents from and against all liability, claims, liens, costs, expenses,
demands, fines or other actions imposed by any Governmental Agency with jurisdiction, suits
and causes of action of every kind and character arising in favor of any third party on account of
personal injuries or death, or damages to property (including without limitation claims for
pollution and environmental damage) in any way directly resulting from the negligent acts or
omissions of the Owner, its agents, employees, representatives, or contractors, or from the failure
of Owner, its agents, employees, representatives, or contractors to perform its obligations under
this Agreement and in compliance with all applicable Laws. This indemnity includes Owner's
agreement to pay all costs of defense, including without limitation attorneys' fees, incurred by
any person or party indemnified herein.
Owner acknowledges that utility equipment malfunction or failure may occur notwithstanding
the inspection, maintenance, and repair work performed hereunder, and hereby indemnifies,
releases, and holds Operator harmless from any claim or liability, and any direct or indirect
damages claimed or actually suffered (including, without limitation, consequential damages and
loss of profits), resulting from any utility equipment malfimction or failure occurring during the
term of this Agreement, except such claims or liability directly resulting from the negligent acts
or omissions of Operator.
Section 9.2 Indemnification by Operator.
Subject to Section 2.1 (c), Operator shall defend, protect, indemnify, and hold harmless Owner,
and its members, directors, officers, employees and agents from and against all liability, claims,
liens, costs, expenses, demands, fines or other actions imposed by any Governmental Agency
with jurisdiction, suits and causes of action of every kind and character arising in favor of any
third party on account of personal injuries or death, or damages to property (including without
limitation claims for pollution and environmental damage) in any way directly resulting from the
negligent acts or omissions of Operator, its agents, employees, representatives, or contractors, or
from the failure of Operator, its agents, employees, representatives, or contractors to perform its
Operalmntand Maine mm Ag—cal 1
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obligations under this Agreement and in compliance with all applicable Laws. This indemnity
includes Operator's agreement to pay all costs of defense, including without limitation attorneys'
fees, incurred by any person or party indemnified herein.
Operator agrees that the obligations of indemnification herein include, but are not limited to,
liens by third parties against Owner and its property because of labor, services, materials, or any
other subject of lien, fiirnished to Operator or its assignees or subcontractors, in connection with
any work performed by Operator hereunder.
Section 9.3 No Consequential Damages
Under no circumstances shall either Party hereto be liable to the other hereunder for indirect,
special, consequential or similar damages, or for loss of profits.
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WHEREFORE, the Parties have executed this Agreement in two (2) duplicate originals
by their duly authorized, respective officers, effective as of the date specified above.
HUTCHINSON UTILITIES
COMMISSION
By;
Name: Donna L.uhrina
Title: Commission President
Date:
Witness:
,I.
Date:
Operattons and W n— m Agmment 19
Natural Gaa Fxtlnia
11-11and Corn N dud%
John Wchatcr
HEARTLAND CORN PRODUCTS
By: (15_
Name:"G
Title: C-&�
Date:
Witness:
Date:
EXHIBIT "A"
This Exhibit "A" is attached to and made part of that certain Operating Agreement — Natural Gas
Facilities (the "Agreement") by and between Heartland Corn Products ("Owner") and
Hutchinson Utilities Commission ("Operator").
OPERATOR'S PAYMENT INSTRUCTIONS:
For the purpose of this Agreement, Owner shall make all payments provided in the Agreement to
Operator via Check to the following:
Hutchinson Utilities Commission
225 Michigan St SE
Hutchinson, Minnesota 55350
EXHIBIT "B"
This Exhibit "B" is attached to and trade part of that certain Operating Agreement — Natural Gas
Facilities (the "Agreement") by and between Heartland Corn Products ("Owner") and
Hutchinson Utilities Commission ("Operator").
Owner has constructed (or will construct) and own the natural gas facilities, including all
appurtenances thereto, ("Facility" or "Facilities") serving Heartland Corn Products, Winthrop,
Minnesota.
Each interconnected third party natural gas operator shall operate their respective pipeline
facilities connected to the Facilities.
EXHIBIT "C"
This Exhibit "C" is attached to and made part of that certain Operating Agreement — Natural Gas
Facilities (the "Agreement") by and between Heartland Corn Products ("Owner") and
Hutchinson Utilities Commission ("Operator").
ROUTINE WORK
Monthly Fee: $500.00
All materials shall be charged at a cost plus 10% to cover all inventory and purchasing fees.
COMPLETE LIST OF ROUTINE ITEMS:
A. Maintenance, Repair and Security
1. Perforrn all day-to-day operations and maintenance of the Facilities
2. Maintain, test and repair all valves
3. Perform continuing surveillance of the Facilities and provide valve security
4. Maintain, test and repair regulators
5. Maintain the cleanliness and environmental soundness of the Facilities
6. Make minor mechanical repair
7. Perform preventative maintenance
8. Respond to service calls, including emergencies, during HUC standard work hours
(6:30 AM to 5:00 PM, Monday through Friday), except to the extent response to an
emergency requires additional personnel that are not on duty during said emergency
and/or additional outside contractors
S. Legal and Regulatory Compliance
1. DOT regulatory agency reporting
2. Maintain DOT System records
3. Maintain Training & DOT Operator Qualification Program and records
4. Maintain Anti -Drug and Alcohol compliance programs
5. Provide line locating and one call response services, including documentation, as
requested by Owner
6. Maintain membership in Gopher State One -Call Program
7. Develop and maintain operating procedures, maintenance procedures, and training
plans and procedures to be followed for Operations, and ensure procedures and plans
are available for review by Owner in Operator's office during normal business hours
EXHIBIT "C", continued
8. Perform all DOT mandated audits and inspections at required frequency
9. Develop and maintain Emergency Response Plan, Operation & Maintenance Manual,
Operator Qualification Plan, Public Awareness Program, Control Room Management
Plan, and Distribution Integrity Management Program, including annual updates
10. Prepare all necessary reports related to field operations of the Facilities for applicable
Governmental Authorities
11. Reporting to Owner any notices of violations of any Laws or Permit provisions
12. Develop any other plans, reports, and other documents as may be required by any
Governmental Authority with jurisdiction over the Facilities
13. Otherwise maintain the Facilities' and Operations' ongoing compliance with all Laws
and Permits
C. Monitoring and Testing
1. Read Heartland Corn Products' meter/s on a daily basis.
2. Provide cathodic protection monitoring, maintenance, documentation, and
recordkeeping for the Facilities
3. Witness third party meter calibrations at the request of Owner.
4. Perform routine field level monitoring of metering and regulation facility operations
5. Perform internal and external corrosion inspections
6. Perform monthly odorization monitoring
7. Perform atmospheric corrosion surveys
8. Perform routine line patrols
9. Perform distribution leakage surveys
10. Maintain proper documentation on all inspections, tests and calibrations
D. Community Relations
1. Facilitate annual damage prevention training meeting for excavation contractors
2. Develop and implement Community Awareness Programs, including, but not limited
to, membership in Minnesota Community Awareness Emergency Response program
3. Act as public liaison with appropriate emergency responders and public officials
EXHIBIT "C", continued
F. Other
1. Maintain in force and effect, and require all contractors (and their subcontractors)
performing services for the benefit of Owner to maintain in force and effect,
insurance of the types and in the amounts specified by Owner.
2. Undertake all reasonable efforts to keep the Facilities, all contracts relating to the
Operations, and all property and rights of Owner free and clear of any and all liens,
encumbrances, security interests, charges, claims and restrictions arising out of or on
account of the Operations
3. Maintain 24-hour emergency telephone number
4. Procure and furnish all materials, equipment, services, supplies, labor and supervision
necessary to carry out Operator's responsibilities under this Agreement.
EXHIBIT "D"
This Exhibit "D" is attached to and made part of that certain Operating Agreement — Natural Gas
Facilities (the "Agreement") by and between Heartland Corn Products ("Owner") and
Hutchinson Utilities Commission ("Operator").
NON -ROUTINE WORK
EXAMPLE OF NON -ROUTINE ITEMS: Expense **
1.
Perforrn routine meter testing and calibration
Cost + 10%
2.
Perforin routine pressure and temperature
correcting instrument testing and calibration
Cost + 10%
3.
Painting
Cost + 10%
4.
Retirement of Facilities
Cost + 10%
5.
Engineering Studies (as required)
Cost + 10%
6.
After -hours, holidays, weekends emergency response
Cost + 10%
7.
Additional personnel as my be required
during emergencies
Cost + 10%
8.
Additional contractors as may be required
during emergencies
Cost + 10%
9.
Fees for Public Awareness Program
Materials
Cost + 10%
10.
Fees associated with Community
Awareness Emergency Response Program
Cost + 10%
11. Any and all other items relevant to the
metering and regulation facility operation and
maintenance that are neither listed above
nor included in the attached Exhibit C. Cost + 10%
EXHIBIT "W', continued
** "Expense", as referenced above, shall be the cost of materials, equipment and third
party labor to complete the applicable work or project. Operator shall invoice such cost plus
10%. In addition thereto, Operator shall charge $60.00 per man-hour. All vehicles and
equipment shall be charged by the amount reflected in the following table
Labor and Eauinment Rates (ner Hour)
AIR COMPRESSOR
$42.00
WELDER
$52.00
BACKHOE
$80.00
MINI EXCAVATOR
$70.00
VEHICLE
$47.00
OPERATOR
$60.00
Springsted Incorporated
380 Jackson Street, Suite 300
Saint Paul, MN 55101-2887
4 A -0r j n g t e d Tel: 651-223-3000
p Fax: 651-223-3002
www.springsted.com
June 28, 2016
Mr. Jeremy Carter
General Manager
Hutchinson Utilities Commission
225 Michigan Street SE
Hutchinson, MN 55350
Re: Classification and Compensation Study Summary
Dear Mr. Carter:
Springsted Incorporated is pleased to provide the Hutchinson Utilities Commission with the completed
Classification and Compensation Study.
The Hutchinson Utilities Commission retained Springsted Incorporated to conduct a Classification and
Compensation Study in the fall of 2015. The Study represents a thorough review of the internal
relationships of Utilities positions based on current job responsibilities and job requirements, a thorough
market analysis of equivalent positions in comparable organizations and development of a proposed
compensation plan to ensure internal equity and market competitiveness of Utility positions.
A compensation system provides the framework for determining how employees will be paid. As a
general rule, most organizations conduct comprehensive classification and compensation studies
approximately every five to seven years ensuring their ability to hire and retain qualified employees and
that internal relationships are equitable. The external market comparison is important because it ensures
that the compensation plan is adequate to attract new employees and retain existing employees.
Conducting periodic reviews of internal and external comparability of an organizations compensation
program will assist in maintaining a long-term compensation program and in recruiting and retaining
qualified, experienced employees.
Market Survey. The comprehensive compensation and benefits survey included 32 Utility positions.
Forty-two public and private utilities in Minnesota, Iowa, South Dakota and Wisconsin, listed below,
were selected to participate in the survey. Information was received from 22 organizations.
• Alexandria Light and Power
• Austin Utilities
• Blue Earth Light and Water
• Brainerd Public Utilities
• City of Buffalo
• City of Chaska
• City of Duluth
• Elk River Municipal Utilities
• City of Fairmont
• Grand Rapids Public Utilities
• Marshall Municipal Utilities
• McLeod Cooperative
• Meeker Cooperative
• Moorhead Public Service
• City of New Ulm
• City of North St. Paul
• Owatonna Public Utilities
• Rochester Public Utilities
Public Sector Advisors
• City of St. Peter
• Shakopee Public Utilities Commission
Willmar Municipal Utilities
Worthington Public Utilities
• Alliant Energy
• CenterPoint Energy
• Great River Energy
• MN Power
• Xcel Energy
• Ames Municipal Utilities
• Cedar Falls Utilities
• Indianola Municipal Utilities
• Muscatine Power and Light
• Waverly Light and Power
• City of South Sioux City
• Brookings Municipal Utilities
• City of Pierre
• City of Vermillion
• Watertown Municipal Utilities
• Kaukauna Utilities
• Marshfield Utilities
• Menasha Utilities
• Shawano
• Municipal Utilities
Wisconsin Rapids Waterworks &
Lighting Commission
The survey participants were selected based on their similarity to the Hutchinson Utilities Commission,
geographic location and comparability of positions to Hutchinson Utilities Commission positions. The
organizations in bold are the entities in which we were able to gather salary information. Survey
respondents were asked to provide information only on those Hutchinson Utilities Commission positions
which they considered to be comparable to positions in their organizations. Therefore, survey
respondents did not provide data for every position surveyed.
Survey Results. Of the 32 positions included in the survey, the information for 25 of the positions was
included in the overall analysis. Seven positions were not included in the analysis as the information
collected was either incomplete or inconsistent. On average the salary ranges of Utility positions are
consistent with the market average. It should be noted that not all positions at the Utility have salary
ranges so for comparison purposes, the actual wages of those positions are compared to the average
maximum salaries. Minimum salaries are 2.03% above the average minimum salaries, midpoint wages
of the surveyed positions are, on average, .20% below the market and the maximum and actual salaries
on average are 1.97% below the market. For comparison purposes, wages which are within 5% above or
below the market average, dependent on the organizations pay philosophy regarding market relationship,
are considered to be competitive, which indicates that, on average, the Utility's wages are considered to
be consistent with the market, however, there are some positions which fall more than 5% above and
below the average. A summary of the survey results is in Appendix I.
Compensation Philosophy. A pay philosophy guides the design of a compensation system and answers
key questions regarding pay strategy. It generally takes a comprehensive, long term focus and explains
the compensation program's goals and how the program supports the employer's long-range strategic
goals. Without a pay philosophy, compensation decisions tend to be viewed from a short-term tactical
standpoint apart from the organization's overall goals.
Market competitiveness and internal equity are among the most important areas addressed in a pay
philosophy. An organization's desired market position involves defining the market and identifying where
the organization wants to be positioned within that market. Market position should balance what it takes to
attract new employees and retain skilled employees (in other words, eliminate higher pay as the reason
employees leave the organization) with the organization's financial resources. Internal equity expresses an
organization's desire to provide comparable pay to positions with comparable duties and responsibilities.
A pay philosophy should be developed that establishes a compensation program based on individual
employee performance as a key feature of the pay philosophy. Therefore, we emphasize references to
performance in the pay philosophy discussion. As part of the study, it is recommended that the Utility
consider these concepts in the adoption of a formal pay philosophy:
• Providing fair and equitable rates of pay to employees
• Defining the Utility's market area
• Developing a system that establishes a "market rate" for each position and states the minimum wage
and maximum rates that the Utility will pay individuals within a position
• Establishing rates of pay that allow the Utility to compete successfully for new employees within its
market area
• Establishing a market position that is fiscally responsible with public resources
• Ensuring that pay rates for existing employees are based on individual performance that meets or
exceeds expectations and reflects changing economic conditions
• Developing a compensation system that allows employees to progress through the pay range as long
as their performance consistently meets expectations
• Developing pay administration policies and procedures that ensure their consistent application
between departments
• Ensuring that the compensation program is understandable to employees, supervisors, managers,
the Utility Council and the public
Defining and Evaluating Job Classes. Employees in each Utility position completed Position
Analysis Questionnaires (PAQs). Supervisors reviewed the PAQs and provided information for each
position. Employees and supervisors both responded to questions regarding education and experience
requirements, various job factors affecting positions, working conditions and the physical requirements
of each job in compliance with the Americans with Disabilities Act (ADA).
With the completion of the review of the PAQs completed by employee's and supervisor's, a review of
current job descriptions along with input regarding changes to job descriptions and interviews with
Utility employees, each Utility position was evaluated utilizing the SAFE job evaluation system based on
the current job responsibilities and job requirements. The factors considered in determining the relative
value of classifications are:
• Training and Ability
• Level of Work
• Physical Demands
• Independence of Actions
• Supervision Exercised
• Experience Required
• Human Relations Skills
• Working Conditions/Hazards
• Impact on End Results
Development of the Utility's Compensation Plan. The process of developing a salary schedule draws
from the results of the salary survey along with the internal relationships of positions within the Utility.
The first step in designing a compensation plan is to create a salary curve using the salary survey data for
the Utility's positions and the corresponding job evaluation point factors for each position. This data
produced the salary curve shown below. Any given point on the salary curve identifies where the market
salary rate and the job evaluation point factors intersect.
160,000
140,000
120,000
100,000
80,000
m
r'n 60,000
40,000
20,000
y-14149x+276481Hutchinson Utilities Commission
R- = 0 9736 Compensation Survey
0!
0 100 200 300 400 500 600 700 800
SAFE Total Points (x)
The recommended compensation plan was designed by establishing 22 pay grades with a 6 percent
spread between pay grades. The midpoint of each pay grade generally corresponds with the market as
defined by the salary survey. The compensation plan is designed as an open range system with a defined
minimum, midpoint and maximum salary which provides flexibility for the Utilities Commission in the
hiring rate for employees and in individual employee movement within the pay schedule based on factors
determined by the Commission. There is a 35% spread between the minimum and the maximum of each
pay range. Each position was then assigned to the appropriate salary grade in the salary schedule based on
the job evaluation points of the position. The recommended compensation plan and position and grade
assignment for the Hutchinson Utilities Commission can be found in Appendix II of this report.
It is recommended that as part of this compensation plan, individual employee movement within the range
be based on individual employee performance. Employees should receive increases based on their level of
performance.
An established performance evaluation includes ongoing training of the system ensuring that supervisors
in all departments consistently apply performance standards. When compensation is based on
performance, employees look for assurance that managers will honestly evaluate performance and not
inflate ratings in order to obtain a higher salary for particular employees. Generally, such systems
provide for a review by the Utility Manager's Office to provide a mechanism that helps supervisors
apply performance standards consistently for all employees.
When pay is based on performance, the evaluation system often provides for reviews at six or 12 month
intervals, so employees know how supervisors view their performance and have the opportunity to
improve performance and their prospect for a pay increase. Employees who have satisfactory or better
performance evaluations should expect annual wage increases.
Implementation. To implement the proposed wage schedule employees will move onto the scale based
on the relationship of their current wage to the proposed range for their position. Of the Utility's 51 full-
time employees, 48 have a current wage which falls within the range assigned to their position. Based on
the past performance of employees we assumed an average of 4% increase for the 48 employees for
illustrative purposes of the cost of implementation of the study recommendations. This cost could vary
dependent on the actual performance evaluation rating of employees. The cost to move these 47
employees onto the'proposed compensation plan is $138,803.75 which is 3.51% of the Utility's total
payroll. Three employees have a current wage which falls above the proposed maximum for their
position. These 3 employees will receive lump sum payments based on performance.
# of Staff I Current Salary Proposed Salary Difference I % Increase
otals f 511 $ 3,951,147.20 $ 4,089,950.95 , $ 138,803.75 1 3.51%
Employ ee Below Min 1 01 $ - $ - Is - 0
Employee Within Range ( 481 $ 3,634,217.60$ 3,773,021.35 $ 138,803.75 3.82%
Employee Above Max f 31 $ 316,929.60 1 $ 316,929.60 $ -
On -Going Administration. After initial implementation is achieved, the Utility will need to develop
administration procedures that provide for annual salary adjustments based on market and economic
conditions and adjustments that recognize individual performance.
Employee Adjustments. Employees will move through the wage schedule based on and performance
factors and other factors as determined by the Utilities Commission.
Base adjustments. In subsequent years it will be necessary for the Utility to adjust the salary schedules
based on cost of living and other factors such as recruitment and retention issues. The Utility can establish a
guideline for determining annual base adjustments. For example, the Utility could base its adjustment on
the Consumer Price Index (CPI). The Utility could also contact comparable jurisdictions to find out what
percentage adjustment they are making to their pay scales as a second level of verification of the pay range
adjustment. This would also ensure that the Utility maintains marketability among comparable regional
organizations.
If the CPI for example, is 3.0 a 3.0 percent increase would be applied to the pay scale. In addition,
employees would move to the next step of the wage schedule on their anniversary date, based on satisfactory
performance. By making this base adjustment to all employee salaries, the Utility ensures that employees
will not again fall behind the market.
Summary. The Utility's current compensation plan, on average is consistent with the market. A review
of the internal relationships of positions within the Utility indicates that there were some inequities
amongst comparable positions. The study recommendations will ensure the Utility's compensation plan
is internally consistent and equitable and competitive with the market.
Please contact me if you have any questions.
Respectfully submitted,
OgAA 8 041ttonea
Ann S. Antonsen, Vice President
Consultant
APPENDIX I
Market Survey Information
Salary Survey Summary
I Numberof L Avera a
Average
I Minimum Salary
I Midpoint Salary
I
Maximum Salary
Position Surveyed
1 Respondents YOS
Midooint
I Lowest I
Highest I Average
I Lowest
I Highest
I Lowest
{ Highest I
Average
- Admmstratve Coordmaix
I 11
I 913 1
58,880 21
I 41,366 00 1
58.690 00 I 50,086 62
I 50 611 00
I 71,267 00
I 58 962 00
I 83,844 00 1
67,531 33
IDNU
General Manager
I 18
1 13.50 I
144,336.96
1 98,86240 1
144,393.60 1119,405.40 1126,761.00
I 183,268.80
1140,119.00
i 222,144.00 1
166,770.64
1Electric Crew Chief
I 20
I 20.24 I
78,960 67
I 61,971.00 I
76,794.00 I 69,024.52
I 70,532 80
I 86,382.50
1 75,067.20
I 100,753 0 1
87,732.04
lEleclre Lineperson
I 22
I 11.99 I
67,326.84
147,206.00 1
70,096.00 157,461.36
I 55,536 00
1 79,029.50
I 63,866.00
1 92,976.00 1
76,872.12
IElectric Transmission/DistibufonManager
I 16
1 25.03 I
100,043.12
171,615.00 l
98,327.00 184,845.02
185,06160
1 119,277.60
1 92,367.00
1144,580.80 1
115,241.22
Engineering Technician
I 14
1 9.76 1
59,845.99
1 45,718.00 I
61,644 00 152,185.14
I 52,988.00
1 70,860 00
1 56,201.60
I 80,076.00 1
67,188 31
Electric Meter Crew Chief
I 9
I 19.00 {
75,76612
153,414.40 I
78,624.00 166,395.05
I 67,444.00
1 83,792.50
1 71,427.00
1 94,702.00 1
84,266.23
Electric Meter Technician
I 13
I 15.80 1
59,294.26
1 43,166.00 I
59,259.00 152,591.69
I 51,799.50
1 68,009.50
1 59,550.40
1 79,123.00 1
66,661.80
Engineering Services Manager
I 10
I 13.71 I
104,024.64
I 75,187.00 1100,462.00
187,202.30
I 93,007.00
1 124,100.00
1 99,248.00
1 147,738.00 1
120,846.98
Maintenance Eiecincian
I 10
I 13.93 I
70,414.50
153,934.00 1
73,882.00 1 65,295.33
1 65,447.00
I 76,481.50
1 63,665.70
1 83,324.80 1
75,075 34
DNU-SvstDm Control Crew Chief
I 3
1 2500 I
75,903.50
I 56,012 00 I
72,883.00 I 64,447.50
I 68.014.50
I 83.792 50
I 80 017 00
1 94 702 00 1
87,359 50
DN1.1-SystemContoller
I 4
I 1950 I
73,02878
I 55,27100 1
80,30700 161,35200
{ 64,48250
I 99,20150
1 73,69400
1 118,960 1
84,70557
I 15
I 11.13 I
49,879.47
135,412.00 I
46,925.00 143,417.17
I 41,314.00
I 55,727.00
I 45,635.20
I 65,561.00 I
55,950.04
IAccountCoordinabr
A=unt$UD8rvisor
I 14
1 14.50 1
69,649.68
1 50,401.00 I
72,201.00 161,068 28
162,950.50
I 79,329.50
1 70,428.80
I 93,329.00 I
78,231.08
Accountant
I 16
I 10.63 I
64,786.46
149,171 00 I
62,524.80 154,232.00
160,678 00
I 71,844.00
I 71,386.00
I 84,110.00 I
75,100.20
Computer Systems Analyst
I 11
I 15.56 I
69,078.76
1 49,970.00 1
70,466.00 158,992 89
I 60,678.00
I 79,300.00
I 69,451.00
I 94,405.00 I
79,164.63
[Energy Conservation Admlmstabr
I 10
I 11.19 I
72,891.00
I 57,648.00 I
65,981.00 160,847 00
169,177.50
I 76,978.00
I 80,707.00
I 87,975.00 I
84,935.00
1 Financial Manager
I 17
1 10.09 1
103,360.99
I 69,295.00 1
97,884.80 185,899.72
I 85,024.00
I 119,277.60
1 100,547.00
1 144,580.80 1
120,631.05
IPurchasinghrivenbry Agent
I 15
1 18.33 1
65,60000
I 44,096.00 I
64,195.00 153,972.80
I 53,539.00
I 79,300.00
1 62,98200
I 94,879.00 I
77,064.00
(Crew Chief- Nalural Gas Distibufon
I 5
I 20.00 1
73,969.89
I 65,330 00 I
72,342.00 169,403.55
I 72,342.00
I 79,329.50
I 65,832.00
I 93,329.00 I
77.235.93
ICrewChief- NaturalGasMetaring/Regulafon
1 3
I 17.00 I
74,092.03
162,812.00 I
72,384.00 167,598.00
172,384.00
I 76,271.50
I 72,384.00
I 89,731.00 I
80,350.33
IDNU - Crew Chief- NatralGasTransmssion
I
I I
I I
I
I
I
I
1 I
IMeter Repair/Serviceperson
1 5
I 20.78 I
I I
I
I
I
I 67,683.00
1 70,928.00 1
69,003.02
DNU - Natural Gas Dwecbr
I 5
I 29.38 I
86,38417
I 65.330 00 I
75,187,0 I 71,364 33
I 79,329.50
I 93,984.50
I 93,32900
I 112,78200 1
101,404 00
IWelder/Service Person
I 5
I 13.00 I
57,617.46
142224.00 I
50,232.00 147,592.47
I 51,272.00
I 58,715.50
I 60,320.00
I 73,070.40 1
67,897.49
IDNU - Crew Chief- Maintenance
I 3
I 15.50 I
71,160 27
I 56.638 40 I
67,591,0 I 62,493 80
1 60,860.80
I 79,065 50
1 65,083 20
1 94,879.00 1
79,826 73
DNU - Crew Chief- Operations
I 4
1 24.50 I
74.578 55
I 47,174 40 I
80,307 00 1 62,284 95
I 57,283 20
I 99201.50
I 67,121 60
I 118,096,0 1
8687215
I Maintenance Mechanic
I 4
I 13.98 I
61,046 02
I 46,092.80 1
60,603.00 1 53,347.90
I 55,962.40
I 68,178.50
I 62,29600
I 75,754.00 1
67,719.70
10perafons Engineer
I
I I
I I
1
I
I
I
I I
I Production Manager
I 4
I 23.92 1
101,471.25
1 80,307.00 I
82,993.0 1 81,650 00
I 99,201.50
I
1103,741.00
I
1 118,096.00
I
I 1124,489.00 I
I I
121,292.50
I
(Averages
I
I 9.63
I I
1 16.02 1
I I
I I
1 1
I I
I
1
I
1
I
1
I
1
I
1 1
I I
I
IDNU - dd not use survey mbrmaton
I
I
I I
I I
1
I
I
I
I I
I
Hutchinson. MN Utilities Information
Position Surveved
I
Min I
Diff I
% I
Mid I Diff I
% I
Max I
Diff I
%
DNU - Administrative Coordinator
I
58,304.00 1
1
1
67,751.00 1
I
1
77198.00 1
I
I General Manager
I
122.290.001
2,884.601
2.36%1
142,105.001 (2,23196)1
-1.57%1
161.920.001
(4,85064)1
-3.00'
1 Electric Crew Chief
I
I
I
I
I
I
1
82,492.80 1
(5,239 24)1
-6.35,
[BecticLineperson
I
I
I
I
I
I
1
74,796.801
(2,075.32)1
-2.77'
1
82.379.001
(2,46602)1
-2.99%1
95,724.501 (4,31862)1
-4.51%1
109,070.001
(6,171.22)1
-5.66,
IEledricTransmissiorUDiisiributonManager
Engineering Technician
I
I
I
I
I
I
1
65,145.601
(2,04271)1
-3.14'
1 Eleatic Meier Crew Chief
I
I
I
I
I
I
1
75,732.80 1
1
1Electric Meter Technician
I
I
I
I
I
1
1
67,891.20 1
1,229.40 1
1.81'
Services Manager
1
86,538.001
(66430)1
-0.77%1
100,565.501 (3,45914)1
-3.44%1
114,593.001
(6,253.98)1
-5.46'
�Engineering
Maintenance Electrician
I
I
I
I
I
I
I
70.657.60 1
1
IDNU-Svstem Control Crew Chief
I
I
1
1
1
I
I
80,12.80 1
I
I DNU-Svstem Controller
I
I
I
I
I
I
I
72.862 40 1
I
IAccountCoordinabr
1
47,193.121
1
1
49,814.961
1
1
52,436.801
i
1AccpuntSupervisor
1
58,304.001
(2,764.28)1
-4.74%1
67,751.001 (189868)1
-2.80%1
77,198.001
(1,033.08)1
-1.34'
(Accountant
I
58,304.00 1
4.072.00 1
6.98%1
67.751.00 1
2,964.54 1
4.38%1
77,198.00 1
2,097.80 1
2.72'
[Computer Systems Analyst
I
71,039.00 1
12,046.11 1
16.96%1
82,542.50 1 13,463.74
1
16.31%1
94,D46.00 1
14,881.37 1
15.82
IEnergy Conservation Administrator
1
71,039.00 1
10.192.00 1
14.35%1
82,542.50 1
9,651.50 1
11.69%1
94,046.00 1
9,111.00 1
9.69'
IFinandaiManager
1
82,379.001
(3,52072)1
-4.27%1
95,724.501 (7,63649)1
-7.98%1
109,070.001
(11,56105)1
-10.60'
Purchasing/Inventory Agent
I
58,304.00 1
4,331.20 1
7.43%1
67,751.00 1
2,151.00 1
3.17%1
77,198.001
134.00 1
0.17'
(Crew Chief- Natural Gas Distibufon
I
I
I
I
1
1
1
75,462.40 1
(1,773.53)1
-2.35'
(Crew Chief- Natural Gas Metering/Regulation
I
I
I
I
I
I
1
75,462.40 1
(4,887 93)1
-6.48'
IDNU - Crew Chief- Natural Gas Transmssion
1
1
1
1
1
1
I
75,462.40 I
I
1[MeierRepair/Serviceperson
I
I
I
I
I
I
1
67,891.201
(1,111.82)1
-1.64'
IDNU - Natural Gas Director
1
122,290.00 1
1
1
142,105.00 1
1
1
161,920.00 1
1
wvelder/ServicePerson
I
i
I
I
I
I
1
67,891.201
(6.29)1
-0.01,
IDNU - Crew Chief - Maintenance
I
I
1
1
I
I
I
75,462.40 I
I
DNU - Crew Chief- Operations
I
I
I
I
1
1
I
75,463.20 I
I
I Maintenance Mechanic
I
I
I
I
I
I
1
67,662.40 1
(57 30)1
-0.08'
(Operators Engineer
I
I
I
I
I
1
1
67,662.40 1
1
Production Manager
I
82,379.001
729.001
0.88%1
95,724.501 (5,74675)1
-6.00%1
109,070.001
(12,222.50)1
-11.21,
(Averages
1
I
1
1
1
1,649.93 1
1
2.03% 1
1
1 (318.88)
1
1
1
•0.20% 1
1
1
1
(1,901.82) 1
-1.97%
DNU - did notuse survey information
I
I
I
I
I
I
I
I
I
APPENDIX II
Compensation Plan and Position and Grade Assignment
Compensation Plan
105,190.781
111,502.231
118,192.36
125,283.90
132,800.94
140,768.99
149,215.13
158,168.04
167,658.12
177,717.61
10
% Between Grades:
6%
Range:
35.0'./0.
Starting
midpoint:)
45,500
"Grade
Salary Range
Pts
Min I
Mid 1
01-1135
1 1 1
38,723.401
45,500.001
1361-1154
1 2 1
41,046.811
48,230.001
1551-1174
1 3 1
43,509.621
51,123.801
1751-1195
1 4 1
46,120.191
54,191.231
1961-1217
1 5 1
48,887.411
57,442.701
2181-1241
1 6 1
51,820.651
60,889.261
2421-1267
1 7 1
54,929.891
64,542.621
2681-1295
1 8 1
58,225.681
68,415.181
2961-1325
1 9 1
61,719.221
72,520.091
3261-1357
1 10 1
65,422.381
76,871.291
3581-1391
1 11 1
69,347.721
81,483.571
3921-1427
1 12 1
73,508.581
86,372.581
4281-1465
1 13 1
77,919.101
91,554.941
4661-1505
1 14 1
82,594.241
97,048.241
5061-1545
1 15 1
87,549.901
102,871.131
5461-1585
1 16 1
92,802.891
109,043.401
5861-1625
1 17 1
98,371.071
115,586.001
6261-1665
1 18 1
104,273.331
122,521.161
6661-1705
1 19 1
110,529.731
129,872.431
7061-1745
1 20 1
117,161.511
137,664.781
7461-1785
1 21 1
124,191.201
145,924.661
7861-1825
1 22 1
131,642.681
154,680.141
105,190.781
111,502.231
118,192.36
125,283.90
132,800.94
140,768.99
149,215.13
158,168.04
167,658.12
177,717.61
10
Position and Grade Assignment
11
Proposed Range
IPointslbepartment
€Division
ITItle I
Grade
I Min I Mid I Max
r 163iririance
IN/A
lAceount CQdrdinator 1
3
1 43,509 621 51,123.801 58,737.981
r 2201Production
IN/A
Maintenance Mechanic 1
6
1 51,820.651 60,889.261 69,957.88
r 220IEngineering
IN/A
I Electric Meter Techn ician 1
6
1 51,820.651 60,889.261 69,957.88
r 220{Electric
IN/A
IEnKineeringTechnician 1
6
1 51,820.651 60,889261 69,957.88
r 2251NaturalGas
INCA
IMeterRepair/Serviceverson 1
6
1 51,820651 60,889.261 69,95788
r 240INatural Gas
IN/A
1Welder/Service Person 1
6
1 51,820.651 60,889.261 69,95788
r 2431Finance
IN/A
(Purchasing/Inventory Agent 1
7
1 54,929891 64,542621 74,155.351
r 260IProduction
IN/A
10perations Engineer 1
7
1 54,929.891 64,542621 74,155.35
r 270IFinance
IN/A
lAccount Supervisor 1
8
1 58,225.681 68,415.181 78,60467
r 2701Administration
IN/A
lAdministrative Coordinator 1
8
1 58,225.681 68,415.181 78,604.67
r 2731Finance
IN/A
1Accountant 1
8
1 58,225681 68,415.181 78,604.67
r 2731FngmeennR
IN/A
IMaintenance Electrician 1
8
1 58,225.681 68,415.181 78,604.67
r 2751FngineerinR
IN/A
I System Controller 1
8
1 58,225.681 68,415.181 78,60467
r 2901 Natural Gas
IN/A
ICrew Chief- Metering 1
8
1 58,225 681 68,415.181 78,604 67
r 2931Electric
IN/A
lElectricLineperson 1
8
1 58,225681 68,415.181 78,60467
r 310IFinance
IN/A
IFnergyConservation Administrator 1
9
1 61,719.221 72,520091 83,320951
r 3151Production
IN/A
ICrew Chief -Maintenance 1
9
1 61,719.221 72,520091 83,320.951
r 330IFinance
IN/A
I Computer Systems Analyst 1
10
1 65,422381 76,871.291 88,320211
r 3301EngineerinR
IN/A
I Electric Meter Crew Chief 1
10
1 65,422.381 76,871.291 88,320.21
r 3351Production
IN/A
ICrew Chief -Operations 1
10
1 65,422.381 76,871.291 88,320.21
r 340IFngineering
IN/A
ISys tem ControICrewChief 1
10
1 65,422.381 76,871291 88,320.21
r 348INatural Gas
IN/A
ICrew Chief - Distribution 1
10
1 65,422.381 76,871.291 88,320.21
r 3601 Electric
IN/A
IElectric Crew Chief I
11
1 69,347.721 81,483 571 93,619.42
r 3701 Natural Gas
IN/A
ICrew Chief -Transmission I
11
1 69,347.721 81,483.571 93,619.42
r 5201Electric
IN/A
(Electric Transmission/Distribution Manager 1
15
1 87,549.901 102,871.131 118,192.36
r 5451Production
IN/A
IProduction Manager 1
15
1 87,549 901102,871.131118,192 36
r 560IFinance
IN/A
I Financial Manager 1
16
1 92,802 891109,043.401125,283 90
r 5851Ergineering
IN/A
IEngineering Services Manager 1
16
1 92,802.891 109,043.401 125,283.90
r 6001 Natural Cas
IN/A
(Natural Gas Director 1
17
1 98,371 071 115,586.001 132,800 94
r 7601Administration
IN/A
IGeneral Manager 1
21
1 124,191.201145,924.661167,658 121
11
O
L, A U E OF
MINNESOTA
CITIES
LEAGUE OF MN CITIES INSURANCE TRUST (0011)
C/O BERKLEY RISK ADMIN.CO.,LLC
222 SOUTH NINTH STREET
SUITE 2700
MINNEAPOLIS MN 55402-3332
612-766-3000 FAX: 612-766-3281
Agent 00842
ARTHUR. J GALLAGHER RISK
MANAGEMENT SERVICES INC
3600 AMERICAN BLVD S #500
BLOOMINGTON MN 55431-1069
INVOICE #: 53207
PREMIUM NOTICE
Invoice Date: 5/22/16
Due Date: 06/19/16
Bill To
HUTCHINSON UTILITIES
COMMISSION
225 MICHIGAN ST SE
HUTCHINSON MN 55350-2522
Type of Coverage: MUNICIPALITY
Convenant Number CMC 38641
Covered Party: HUTCHINSON UTILITIES
Payment Plan Selected: ANNUAL PAY PLAN
DUE DATE AMOUNT DUE END.DATE DESCRIPTION
6/19/16 75, 676.00 PREMIUM
Total: $75,676.00
Payment/Adjustment
Applied: $.00
Total: $75,676.00
Coverage Period: 1/01/16 To 1/01/17
------------------------------
PLEASE RETURN THIS PORTION WITH YOUR CHECK MADE PAYABLE TO:,
LEAGUE OF MN CITIES INSURANCE TRUST (0011)
C/O BERKLEY RISK ADMIN.CO.,LLC
P.O. BOX 581517
MINNEAPOLIS MN 55458-1517
612-766-3000 FAX: 612-766-3281
Type of Coverage: MUNICIPALITY
Covenant Number: CMC 38641
Coverage Period: 1/01/16 To 1/01/17
Covered Party: HUTCHINSON UTILITIES
INVOICE #: 53207
DUE DATE: 06/19/16
UNPAID BALANCE: 75,676.00
AMOUNT DUE: 75,676.00