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09-26-2018 HUCCPHUTCHINSON UTILITIES COMMISSION AGENDA REGULAR MEETING September 26t', 2018 3:00 p.m. 1. CONFLICT OF INTEREST 2. APPROVE CONSENT AGENDA a. Approve Minutes b. Ratify Payment of Bills 3. APPROVE FINANCIAL STATEMENTS 4. OPEN FORUM 5. COMMUNICATION a. City Administrator b. Divisions C. Legal d. General Manager 6. POLICIES a. Review Policies i. Errors in Billing ii. Pay Periods, Paydays iii. Payroll Deductions iv. Overtime v. Compensation Plan vi. Travel Expenses b. Approve Changes i. Payment of Your Bill ii. Automatic Bill Payment Plan iii. Worker's Compensation 7. UNFINISHED BUSINESS a. None 8. NEW BUSINESS a. Approve Requisition #007716 to Braun Intertec Corp for Special testing and Inspections b. Cancel Requisition #007499 that was previously approved on March 28, 2018 and replace with Requisition #007717 for 2018 Chevrolet Silverado 9. ADJOURN MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, August 29, 2018 Call to order — 3:00 p.m. President Monty Morrow called the meeting to order. Members present: President Monty Morrow; Vice President Anthony Hanson; Commissioner Don Martinez; Commissioner Matt Cheney; General Manager Jeremy Carter; Attorney Marc Sebora: Absent: Secretary Robert Wendorff Conflict of Interest At this time, President Morrow noted that there would be an addition under New Business. Will be adding agenda 8g- Corval Settlement Agreement 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Hanson, second by Commissioner Martinez to approve the Consent Agenda. Motion carried unanimously. 5. Approve Financial Statements Jared Martig presented the financial statements. There were not a lot of changes. However would like to point out in the Electric Division year to date there is a difference of $43k from 2017 to 2018. This is due to having extra debt interest of $316K on the recently issued 2017B Bonds. GM Carter noted in the Electric Division, Generator/Fuel has increased by $145K through July. Offsetting that will be the Sales for Resales. A lot of this has to deal with the Transalta Contract. All energy sales are above 2017 with the exception of Industrial. Natural Gas Division is also comparable to 2017. In next month's Investment report, the Commission will see that there was a CD that was maturing in August, so that was reinvested for 18 months. After discussion, a motion by Commissioner Martinez, second by Commissioner Cheney to approve the financial statements. Motion carried unanimously. 6. Open Forum 7. Communication a. City Administrator— Matthew Jaunich i. The City is in the middle of working on projects; 2nd Ave Bridge will be done in September. Also, continuing to work on Century Ave. ii. Highfield Apartments are looking to start working on units 4 & 5 in September. iii. Received Application to have another commercial building added between Advanced Auto Parts and Goodwill. iv. Council just approved a TIF plan for Warrior Manufacturing to start this Fall. b. Divisions i. Dan Lang, Engineering Services Manager — Nothing to report ii. Dave Hunstad, Electric Transmission/Distribution Manager — 1. There were two outages last week; first outage was Monday at midnight a wire failure by Mid Country Bank affected businesses on Hwy 15 on the East Side, second outage was Wednesday that affected a Transformer at the City Center. 2. Projects are going well iii. Randy Blake, Production Manager - 1. All the equipment for Unit's 6 & 7 are here. The next step is to get a contractor. 2. Starting to work on 2019 quotes and budgets. 3. Working hard at both plants with being down one crew chief iv. John Webster, Natural Gas Division Manager- Nothing to report v. Jared Martig, Financial Manager- Nothing to report c. Human Resources - Brenda Ewing — absent d. Legal — Marc Sebora — Nothing to report e. General Manager — Jeremy Carter i. Sent out the Wholesale Generation Model for the Commissioners to review, which includes an income statement and a cash flow statement that Staff updates every year. This model is also updated to keep the Commissioners up to date on what types of business models are out there and how each model could potentially affect HUC's financial position. These models should show the Commissioners that as the market/industry changes whether or not HUC should stay in the generation model or if the model should change. If any of the Commissioners have any questions please feel free to stop in or call. It is important for the Commissioners to understand the Wholesale Generation Model. ii. Need to discuss this Fall the Performance Pay System with the Commissioners. The Compensation Study was done back in 2016; the structure was put in place as by grades but it was not finished down the path of putting in a Performance Based System. Would like to have a conversation with each of the Commissioners to make sure the understanding of the historical background is there. iii. Will be reviewing insurance coverages with Gallagher next Wednesday to make sure HUC has all proper coverages in place. Staff members will be present. iv. Will also be meeting with Rich Westlund on Health insurance renewals for 2019. HUC currently has over 50 employees, so anticipating that HUC will be moving back into a large group plan verses a small group plan. This is important for the Commission to know since large group plan premiums are based off health care utilization and community based claims significantly more compared to being in the small group plan, which HUC is currently in. Small group plans are not based on utilization. 2 v. Conversations to start in Oct about the 2019 Budget and CIP documents. Need to look at HUC's 5 year CIP. vi. Final COS documents were sent out to the Board. vii. Analysis on Transmission Rates for Natural Gas side - will be reviewing this with John. Looking at if HUC is charging a fair rate in town. viii. Had a due diligence call with John along with the Bond Council, attorneys, BP and PEAK for the Natural Gas Prepay contract. HUC is one of the larger participants, which is why Staff was on the call. The biggest piece of the conversation was to make sure HUC would be using the gas for the retail customers so that tax-exempt bonds can be issued. At this time, Commissioner Hanson thanked Jeremy, Jared and Randy for creating the Electric Production Profit and Loss statement. This is something the Commission has not had in the past and it is appreciated. 8. Policies a. Review Policies i. Cold Weather Rule ii. Terminating Electric/Natural Gas Service by Customer iii. Definition of Your Bill iv. Hours & Conditions of Employment v. Flextime Program — Exempt Only vi. Rest Periods vii. Meal Periods viii. Attendance/Tardiness ix. Use of Facilities during off -duty Hours- Non Exempt Only x. Inclement Weather No changes recommended at this time. b. Approve Changes No changes were made to the policies under review. 9. Unfinished Business 10. New Business a. Approve United Natural Gas Capacity Contract Mr. Webster reviewed the First Amendment to United Natural Gas/Lafayette Natural Gas Firm Transportation Capacity Agreement. United Natural Gas (UNG) would like to increase its firm natural gas transportation capacity on the HUC natural gas pipeline. UNG is selling more gas than what they have permission to transport. One of HUC's meters was damaged and UNG did pay for the repair. Through multiple conversations, Mr. Webster agreed to allow UNG to increase the capacity for October and November from 900DTH/Day to 1200DTH/Day along with increasing capacity for December through March to 1000DTH/Day. Along with increasing capacity, Mr. Webster would also like to allow UNG to exceed those levels when the grain dryers are running. During the months of October and November UNG is allowed to flow a maximum of 3 200 MCFH and/or 4,000 MCFD. Some accommodations were made to allow UNG to tier their contract levels agreeing that if they exceed the 1,200 DTH/day contracted level transport fees will be levied accordingly. Also need to point out on the first page of agreement it will read that this was `entered into this 29tn day of August, 2018, to be effective as of the 1st day of September, 2018'. Bottom line is that HUC would see a minimum of $6900K more a year depending on crop conditions. Commissioner Hanson inquired if this would affect the pipeline or other projects. Mr. Webster explained it would not. After discussion, a motion by Commissioner Hanson, second by Commissioner Cheney to approve United Natural Gas Capacity Contract. Motion carried unanimously. b. Approve Energy Conservation Rebate for Hutchinson Public School Mr. Martig presented the Energy Conservation Rebate for Hutchinson Public School. The new lights will save 189,163 kWh. The rebate amount is $31,860.00. Motion by Commissioner Hanson, second by Commissioner Martinez to approve Energy Conservation Rebate for Hutchinson Public School. Motion carried unanimously. c. Approve Requisition #007671- Blade Replacement Mr. Blake presented Requisition #007671-Blade Replacement. HUC's Unit 1 has a General Electric (GE) gas turbine that needs to have the stages 3-5HPC turbine blades replaced. These blades need to be replaced periodically since they take the most stress due to the airflow to the machine. HUC is looking to complete the work this Fall. GM Carter added that this was a capital item for the year that was budgeted. The estimated amount was $150K and Mr. Blake was able to get this significantly lower. After discussion, a motion by Commissioner Martinez, second by Commissioner Cheney to approve Requisition #007671- Blade Replacement. Motion carried unanimously. d. Approve Exception Agreement between HUC and MCPA Mr. Hunstad reviewed Exception Agreement between HUC and MCPA. This is in regards to L&P Supply located on South Grade Road that was annexed into the City in 2002 and became part of HUC's service territory. There was an agreement between HUC, MCPA and the property owner that would allow MCPA to continue to serve the property due to the design of the electric heating system in the building although there was not any documentation. Verizon now has an agreement to install a cell tower on the property and since it is located 12 within the City, there is question on who should serve the tower. Through conversations, all parties involved agree that the current property and cell tower would be served by MCPA. After discussion, a motion by Commissioner Hanson, second by Commissioner Cheney to approve Exception Agreement between HUC and MCPA. Motion carried unanimously. e. Approve HDR Change Order Request GM Carter presented the HDR Change Order Request. This is the second change order request for the Board to consider. The original contract language did state that $382K is HDR's best -estimated guess with all the different components that the project contains. As time has gone on and with CAT having to have to do redesign work on the front end and reengineering on the auxiliary equipment this has taken longer than anticipated. There has been a lot of communication and time spent back and forth so HDR had to request the first change order request of $262K to get the project through the June timeframe. When Staff received the June invoice, it had exceeded the contract - approved amount. GM Carter notified HDR of the invoice exceeding the contract amount and had HDR submit a second change order request. The change order request is for $182K. There was acknowledgment from HDR with the litigation process and this change order did not include any additional time HDR had to spend on the rebidding process. GM Carter noted that HDR was asked if this would be the final change order. HDR cannot assure this will be the last change order but it should be close and hopefully another change order is not needed. Staff and HDR are asking to have the Commission approve the change order. HUC is anticipating this change order should complete the project. Commissioner Hanson addressed his concern with the mismanagement of the bid. Commissioner Martinez agreed with Commissioner Hanson and questioned how they could spend double the amount of time on the project. Attorney Marc Sebora noted that there have been many conversations with GM Carter, and that all the same concerns have been brought forward. In the contract, it is written that HDR could give a 7-day notice and walk away. HUC needs to have the project completed in a timely fashion right now so there really is not a different solution. Commissioner Martinez asked what can be learned from this situation and is there a safe guard that can be put in place. Discussions were held about what has been done in the past with other projects and different ideas can be considered for what can be done in the future. President Morrow noted that change orders are not that uncommon. It does lay everything in perspective with this size of a project. There were many bumps along the way but Staff has done a great job. Commissioner Hanson inquired how much contingency is left GM Carter noted that there is about $280K left in budgeted contingency dollars, plus $300K left in bond proceeds. 5 After much discussion, a motion by Commissioner Hanson, second by Commissioner Cheney to approve HDR Change Order Request. Motion carried unanimously. Declare an Open Meeting for HUC's Annual Open House Being Held on Tuesday, October 9 from 4-00p.m. to 7-00p.m. Motion by Commissioner Martinez, second by Commissioner Hanson to approve Declaring an Open Meeting for HUC's Annual Open House Being Held on Tuesday, October 9 from 4-00p.m. to 7-00p.m. Motion carried unanimously. g. Corval Settlement Agreement GM Carter noted this is the final step in finishing the process. Attorney Marc Sebora reviewed the recent disagreement with Corval Constructors with the project. Both parties have agreed to settle their differences and give Corval $30K, which is the cost of the preparation of the bid. Both parties will waive any claims there may be against each other and start over with the rebid. Commissioner Hanson inquired if this amount is in accordance with the statutes of what is allowable and it is not considered a buyout. Attorney Marc Sebora noted that this amount is allowable and all invoices have been reviewed to make sure all were legitimate costs and that this is not a buyout. Motion by Commissioner Hanson, second by Commissioner Martinez to approve Corval Settlement Agreement. Motion carried unanimously. 11. Adjourn There being no further business, a motion by Commissioner Martinez, second by Commissioner Cheney to adjourn the meeting at 3:55p.m. Motion carried unanimously. Robert Wendorff, Secretary ATTEST: Monty Morrow, President 9 MINUTES Special Meeting — Hutchinson Utilities Commission Wednesday, September 19, 2018 Call to order — 7:00 a.m. President Morrow called the meeting to order. Members present: President Monty Morrow; Vice President Anthony Hanson; Secretary Robert Wendorff; Commissioner Don Martinez; Commissioner Matt Cheney; General Manger Jeremy Carter; Attorney Marc Sebora Others present: John Webster, Angie Radke. The purpose of the special meeting is the Execution of the Prepay Natural Gas Supply Contract. GM Carter reviewed the Prepay Natural Gas Supply contract. This process started back almost 2 years ago. The original conversations were for a 30-year, 25-cent discount. However, Staff did not feel it would meet the State Statutes. Many conversations were discussed on the wording of the document and it was decided that a 30-year contract was not the best fit for HUC. In June of 2018, Staff presented a Buyers Authorizing Resolution for Short -Term Natural Gas Prepay Deal. Commission approved this on June 27, 2018. Today, Staff would like to move forward with executing a Prepay Natural Gas Supply contract. GM Carter stated there was a due diligence call with himself, Mr. Webster, the Bond Council, attorneys, BP and PEAK for the Natural Gas Prepay Contract a couple of weeks ago. HUC is one of the top 20 participants, which is why Staff was part of the bond call. There are many participants that are committing to the 30-year contract, however HUC recommends the short-term contract at 6 years for a 6-cent discount. Before the Commission, is the Gas Supply Contract and Buyers Certificate. Attorney Marc Sebora will sign the Opinion Letter. These documents will execute HUC into the contract and states that HUC will pay for the gas when it is received and that HUC will honor the deal. The Delivery period will be April 1, 2019, through the earlier of November 24, 2024. Discussions were held on what cities are moving forward with the 30-year contract along with why the language of the contracts were suitable for them. After further discussion, a motion by Commissioner Martinez, second by Commissioner Hanson to approve the Execution of the Prepay Natural Gas Supply Contract. There being no further business, a motion by Commissioner Wendorff, second by Commissioner Cheney to adjourn the meeting at 7:13a.m. Motion was unanimously carried. 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Combined Division Customer Revenue $ 2,907,321 $ 2,838,314 $ 69,007 Sales for Resale $ 301,970 $ 196,950 $ 105,020 NU Transportation $ 85,117 $ 70,535 $ 14,582 Electric Division Transfer $ 54,697 $ 54,308 $ 389 Other Revenues $ 56,402 $ 58,438 $ (2,036) Interest Income $ 28,723 $ 11,870 $ 16,853 TOTAL REVENUES $ 3,434,230 $ 3,230,415 $ 203,815 Chnq 2018 $ 24,680,293 2017 $ 23,597,974 $ Di 1,082,319 % Chnq 4.6% 66.67% of Year Full Yr Bud $ 35,763,605 Comp. % of Bud 69.0% 2.4% 53.3% $ 2,162,808 $ 1,451,851 $ 710,957 49.0% $ 2,519,200 85.9% 20.7% $ 584,982 $ 572,466 $ 12,516 2.2% $ 739,440 79.1% 0.7% $ 437,577 $ 434,466 $ 3,111 0.7% $ 656,366 66.7% (3.5%) $ 403,365 $ 464,306 $ (60,942) (13.1%) $ 492,808 81.9% 142.0% $ 212,680 $ 95,132 $ 117,548 123.6% $ 100,000 212.7% 6.3% $ 28,481,706 $ 26,616,196 $ 1,865,510 7.0% $ 40,271,419 70.7% Salaries & Benefits $ 569,577 $ 471,686 $ 97,891 20.75% $ 3,923,416 $ 3,699,256 $ 224,160 6.1% $ 6,363,429 61.7% Purchased Commodities $ 1,663,148 $ 1,608,408 $ 54,740 3.4% $ 13,967,624 $ 13,487,843 $ 479,781 3.6% $ 19,600,000 71.3% Transmission $ 237,523 $ 289,042 $ (51,518) (17.8%) $ 1,651,141 $ 1,681,305 $ (30,164) (1.8%) $ 2,630,000 62.8% Generator Fuel/Chem. $ 180,028 $ 144,853 $ 35,174 24.3% $ 886,652 $ 705,862 $ 180,790 25.6% $ 992,082 89.4% Depreciation $ 325,667 $ 317,333 $ 8,333 2.6% $ 2,605,333 $ 2,538,667 $ 66,666 2.6% $ 3,908,000 66.7% Transfers (Elect./City) $ 158,986 $ 154,003 $ 4,984 3.2% $ 1,271,890 $ 1,232,020 $ 39,870 3.2% $ 1,907,835 66.7% Operating Expense $ 124,135 $ 159,220 $ (35,085) (22.0%) $ 1,228,580 $ 1,537,204 $ (308,624) (20.1%) $ 2,490,809 49.3% Debt Interest $ 103,551 $ 63,382 $ 40,169 63.4% $ 828,411 $ 507,058 $ 321,353 63.4% $ 1,280,863 64.7% TOTAL EXPENSES $ 3,362,615 $ 3,207,927 $ 154,688 4.8% $ 26,363,047 $ 25,389,214 $ 973,833 3.8% $ 39,173,018 67.3% NET PROFIT/(LOSS) $ 71,615 $ 22,488 $ 49,127 218.5%1 2,118,659 $ 1,226,982 $ 891,677 72.7% $ 1,098,401 192.9% August August YTD YTD 2018 HUC 2018 2017 Change 2018 2017 Change Budget Target Gross Margin % 29.5% 28.0% 1.5% 34.2% 31.9% 2.3% 32.2% �NNNNNNNNd� Operating Income Per Revenue $ (%) 3.3% 1.2% 2.1% 8.9% 5.0% 3.9% 5.2% IIII HM��������llNllNldl Net Income Per Revenue $ (%): 2.1% 0.7% 1.4% 7.4% 4.6°% 2 8°% 2.7% HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION FINANCIAL REPORT FOR AUGUST, 2018 2018 2017 2 . %Chng 2018 2017 2 . %Chna Full YrBud %of Bud Electric Division Customer Revenue $ 2,545,673 $ 2,438,635 $ 107,038 4.4% $ 17,449,954 $ 17,119,619 $ 330,335 1.9% $ 25,325,189 68.9% Sales for Resale $ 301,970 $ 196,950 $ 105,020 53.3% $ 2,162,808 $ 1,451,851 $ 710,957 49.0% $ 2,519,200 85.9% Other Revenues $ 14,570 $ 31,713 $ (17,143) (54.1%) $ 165,706 $ 270,176 $ (104,470) (38.7%) $ 208,800 79.4% Interest Income $ 15,756 $ 5,935 $ 9,820 165.5% $ 117,492 $ 47,566 $ 69,926 147.0% $ 50,000 235.0% TOTAL REVENUES $ 2,877,969 $ 2,673,233 $ 204,736 7.7% $ 19,895,961 $ 18,889,213 $ 1,006,748 5.3% $ 28,103,189 70.8% Salaries & Benefits $ 456,145 $ 370,563 $ 85,582 23.1% $ 3,087,478 $ 2,895,566 $ 191,912 6.6% $ 4,942,964 62.5% Purchased Power $ 1,462,569 $ 1,379,077 $ 83,492 6.1% $ 10,162,682 $ 9,744,272 $ 418,410 4.3% $ 14,000,000 72.6% Transmission $ 237,523 $ 289,042 $ (51,518) (17.8%) $ 1,651,141 $ 1,681,305 $ (30,164) (1.8%) $ 2,630,000 62.8% Generator Fuel/Chem. $ 180,028 $ 144,853 $ 35,174 24.3% $ 886,652 $ 705,862 $ 180,790 25.6% $ 992,082 89.4% Depreciation $ 241,667 $ 233,333 $ 8,333 3.6% $ 1,933,333 $ 1,866,667 $ 66,666 3.6% $ 2,900,000 66.7% Transfers (Elect./City) $ 128,224 $ 123,408 $ 4,816 3.9% $ 1,025,795 $ 987,266 $ 38,529 3.9% $ 1,538,693 66.7% Operating Expense $ 84,239 $ 103,774 $ (19,535) (18.8%) $ 805,527 $ 1,081,634 $ (276,107) (25.5%) $ 1,613,834 49.9% Debt Interest $ 47,376 $ 2,124 $ 45,252 2,130.6% $ 379,011 $ 16,992 $ 362,019 2,130.6% $ 606,763 62.5% TOTAL EXPENSES $ 2,837,772 $ 2,646,175 $ 191,597 7.2% $ 19,931,620 $ 18,979,563 $ 952,058 5.0% $ 29,224,336 68.2% NET PROFIT/(LOSSSSSS�)�))� 40,197 $ 27,058 $// 13,1(((((39 48.6% $ (35,660) $ (90,350) $ 544/,�69((((0 (60.5%) $ (1,121,147) 3.2% (((((($ �#1IIIIIIIIIII III11lllF�}IR'(rKllllllllllll �/ 66.67%of Year Comp. 2018 2017 2 . %Chna 2018 2017 2 . %Chna Full YrBud %of Bud Electric Division Residential 5,513,450 4,523,968 989,482 21.87% 35,728,260 33,325,598 2,402,662 7.21% 50,432,797 70.8% All Electric 155,126 129,604 25,522 19.69% 1,726,497 1,569,020 157,477 10.04% 2,611,705 66.1% Small General 1,860,112 1,590,142 269,970 16.98% 12,979,843 12,061,505 918,338 7.61% 17,085,853 76.0% Large General 8,153,890 7,165,390 988,500 13.80% 53,275,990 50,005,905 3,270,085 6.54% 79,262,499 67.2% Industrial 12,592,000 13,257,000 (665,000) (5.02%) 89,632,000 92,198,000 (2,566,000) (2.78%) 134,707,856 66.5% Total KWH Sold 28,274,578 26,666,104 1,608,474 6.03% 193,342,590 189,160,028 4,182,562 2.21% 284,100,710 68.1% August August YTD YTD 2018 HUC 2018 2017 Change 2018 2017 Change Budget Target Gross Margin % 24.5% 22.8% 1.7% 26.2% 25.1% 1.1% 24.0% Operating Income Per Revenue $ (%) 2.5% 0.3% 2.2% 0.9% -1.4% 2.3% -2.0% ���IIIIIIIIIIIIIIII Net Income Per Revenue $ (%): 1.4% 1.0% 0.4% -0.2% -0.5% 0.3% -4.0% 0%-5% Customer Revenue per KWH: $0.0900 $0.0915 -$0.0014 $0.0899 $0.0901 -$0.0002 $0.0886 11llllllllllllllll� Total Power Supply Exp. per KWH: $0.0765 $0.0768 -$0.0003 $0.0753 $0.0740 $0.0013 $0.0750 Overall net income increased by $13,139 mostly due to increased revenue from retail & wholesale sales and a reduction in transmission expense. Sales for Resale of $301,970 consisted of $14,960 in market sales, $35,600 in the monthly tolling fee from Transalta, $135,410 in Transalta energy sales, and $116,000 in capacity sales to SMMPA. August 2017 Sales for Resale of $196,950 consisted of $16,388 in market sales, $34,400 in monthly tolling fees from Transalta, $50,162 in Transalta energy sales, and $96,000 in capacity sales to SMMPA. August 2016 Sales for Resale of $326,746 consisted of $55,154 in market sales, $34,400 in Transalta tolling fees, $170,692 in Transalta energy sales, and capacity sales to SMMPA for $66,500. Overall Purchased Power increased by $83,492. MRES purchases decreased by $8,151 and market purchases/MISO costs increased by $91,643. August power cost adjustment was $.00686/kwhr bringing in an additional $193,817 in revenue for the month and $1,158,448 YTD. Last year's power cost adjustment for August 2017 generated $231,399 in additional revenue for the month and $1,220,380 YTD. HUTCHINSON UTILITIES COMMISSION GAS DIVISION FINANCIAL REPORT FOR AUGUST, 2018 2018 2017 2 . Gas Division Customer Revenue $ 361,648 $ 399,679 $ (38,032) Transportation $ 85,117 $ 70,535 $ 14,582 Electric Div. Transfer $ 54,697 $ 54,308 $ 389 Other Revenues $ 41,832 $ 26,724 $ 15,107 Interest Income $ 12,967 $ 5,935 $ 7,032 TOTAL REVENUES $ 556,261 $ 557,182 $ (921) Chna 2018 2017 2 . (9.5%) $ 7,230,339 $ 6,478,355 $ 751,984 20.7% $ 584,982 $ 572,466 $ 12,516 0.7% $ 437,577 $ 434,466 $ 3,111 56.5% $ 237,658 $ 194,130 $ 43,528 118.5% $ 95,188 $ 47,566 $ 47,622 (0.2%) $ 8,585,745 $ 7,726,984 $ 858,761 Salaries & Benefits $ 113,431 $ 101,123 $ 12,308 12.2% $ 835,938 $ 803,690 $ 32,248 Purchased Gas $ 200,578 $ 229,331 $ (28,752) (12.5%) $ 3,804,941 $ 3,743,571 $ 61,371 Operating Expense $ 39,896 $ 55,445 $ (15,550) (28.0%) $ 423,053 $ 455,570 $ (32,517) Depreciation $ 84,000 $ 84,000 $ - 0.0% $ 672,000 $ 672,000 $ Transfers (City) $ 30,762 $ 30,594 $ 168 0.5% $ 246,095 $ 244,754 $ 1,341 Debt Interest $ 56,175 $ 61,258 $ (5,083) 0.0% $ 449,400 $ 490,067 $ (40,666) TOTAL EXPENSES $ 524,842 $ 561,752 $ (36,909) (6.6%) $ 6,431,427 $ 6,409,652 $ 21,775 NET PROFIT/(LOSS) $ 31,418 $ (4,570) $ 35,988 (787.5%) $ 2,154,318 $ 1,317,332 $ 836,986 Chna 66.67% of Year Full Yr Bud $ 10,438,416 Comp. % of Bud 69.3% 11.6% 2.2% $ 739,440 79.1% 0.7% $ 656,366 66.7% 22.4% $ 284,008 83.7% 100.1% $ 50,000 190.49/8 11.1%1 $ 12,168,230 70.6% 4.0% $ 1,420,465 58.8% 1.6% $ 5,600,000 67.9% (7.1%) $ 876,975 48.2% 0.0% $ 1,008,000 66.7% 0.5% $ 369,142 66.7% 8.32L $ 674,100 $ 9,948,682 66.7% 64.6% 0.3% 63.5% $ 2,219,548 97.1% 66.67% of Year Comp. 2018 2017 Di %Chnq 2018 2017 Di %Chnq Full YrBud %of Bud Gas Division Residential 6,129,997 6,330,597 (200,600) (3.17%) 283,190,792 243,346,671 39,844,121 16.37% 449,582,000 63.0% Commercial 8,423,574 10,420,668 (1,997,094) (19.16%) 224,628,580 196,959,419 27,669,161 14.05% 420,183,000 53.5% Industrial 48,749,417 54,134,175 (5,384,758) (9.95%) 574,057,349 555,841,398 18,215,951 3.28% 786,836,000 73.0% Total CF Sold 63,302,988 70,885,440 (7,582,452) (10.70%) 1,081,876,721 996,147,488 85,729,233 8.61% 1,656,601,000 65.3% August August YTD YTD 2018 2017 Change 2018 2017 Change Gross Margin % 57.8% 54.1% 3.7% 53.2% 48.9% 4.3% Operating Income Per Revenue $ (%) 7.6% 5.6% 2.0% 27.9% 21.0% 6.9% Net Income Per Revenue $ (%): 6.3% -0.9% 7.1% 26.1% 17.6% 8.5% Contracted Customer Rev. per CF: $0.0036 $0.0036 $0.0000 $0.0038 $0.0038 $0.0000 Customer Revenue per CF: $0.0129 $0.0123 $0.0006 $0.0099 $0.0099 $0.0001 Total Power Supply Exp. per CF: $0.0034 $0.0034 ($0.0000) $0.0036 $0.0038 ($0.0003) 2018 HUC Budget Target NpNNMM 51.4% IIIIIIIIIIIIIIIIIIIIIIII �ppppppppppplppllNNIIMMI 22.1% �pIyII�IIIpIIpIIpIIpIIpIINII 18.8% ��lll�lllllllllllllllllyy $0.0035 $0.0088 $0.0035 $0.0035 Natural Gas net income increased by $35,988 mainly due to lower operating and commodity costs for the month and increases in misc. revenue. August's fuel cost credit adjustment was $1.77881/MCF totalling $32,949 for the month and $251,204 YTD. August 2017 credits totalled $29,086 for the month and $419,996 YTD. Approximately 54% of the increase in net profits year to date is a result of building the rate stabilization fund back up at the beginning of 2018 Current Assets UnrestrictedlUndesignated Cash Cash Petty Cash Designated Cash Capital Expenditures - Five Yr. CIP Payment in Lieu of Taxes Rate Stabilization - Electric Rate Stabilization - Gas Catastrophic Funds Restricted Cash Bond Interest Payment 2017 Bond Interest Payment 2012 Debt Service Reserve Funds Total Current Assets Receivables Accounts (net of uncollectible allowances) Interest Total Receivables Other Assets Inventory Prepaid Expenses Sales Tax Receivable Deferred Outflows - Electric Deferred Outflows - Gas Total Other Assets Total Current Assets Capital Assets Land & Land Rights Depreciable Capital Assets Accumulated Depreciation Construction - Work in Progress Total Net Capital Assets Total Assets HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED AUGUST 31, 2018 Electric Gas Total Total Net Change Division Division 2018 2017 Total (YTD) 10,187,577.04 7,502,165.16 17,689,742.20 11,780,745.00 5,908,997.20 680.00 170.00 850.00 850.00 - 2,750,000.00 700,000.00 3,450,000.00 1,602,160.54 1,847,839.46 882,327.00 369,142.00 1,251,469.00 1,196,331.00 55,138.00 372,736.68 - 372,736.68 314,539.41 58,197.27 - 651,306.61 651,306.61 646,058.37 5,248.24 400,000.00 100,000.00 500,000.00 500,000.00 - 1,115,687.55 - 1,115,687.55 125,406.25 990,281.30 - 1,476,824.99 1,476,824.99 1,629,250.02 (152,425.03) 522,335.64 2,188,694.02 2,711,029.66 2,188,694.02 522,335.64 16,231,343.91 12,988,302.78 29,219,646.69 19,984,034.61 9,235,612.08 2,705,892.47 482,645.53 3,188,538.00 2,802,479.12 386,058.88 19,039.49 19,039.49 38,078.98 31,415.67 6,663.31 2,724,931.96 501,685.02 3,226,616.98 2,833,894.79 392,722.19 1,217,737.70 445,852.88 1,663,590.58 1,600,031.73 63,558.85 65,534.62 65,639.04 131,173.66 14,841.33 116,332.33 51,665.05 - 51,665.05 170,277.69 (118,612.64) 752,887.00 - 752,887.00 1,746,060.00 (993,173.00) - 250,962.00 250,962.00 582,020.00 (331,058.00) 2,087,824.37 762,453.92 2,850,278.29 4,113,230.75 (1,262,952.46) 21,044,100.24 14,252,441.72 35,296,541.96 26,931,160.15 8,365,381.81 690,368.40 3,899,918.60 4,590,287.00 4,591,691.75 (1,404.75) 89,599,922.57 41,294,704.69 130,894,627.26 128,038,921.42 2,855,705.84 (54,378,326.89) (15,678,585.00) (70,056,911.89) (66,870,493.33) (3,186,418.56) 11,386,088.42 293,319.91 11,679,408.33 1,357,922.86 10,321,485.47 47,298,052.50 29,809,358.20 77,107,410.70 67,118,042.70 9,989,368.00 68,342,152.74 44,061,799.92 112,403,952.66 94,049,202.85 18,354,749.81 HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED AUGUST 31, 2018 Electric Gas Total Total Net Change Division Division 2018 2017 Total (YTD) Current Liabilities Current Portion of Long-term Debt Bonds Payable - 1,295,000.00 1,295,000.00 1,345,000.00 (50,000.00) Bond Premium - 185,608.32 185,608.32 185,608.32 - Accounts Payable 2,592,746.51 582,718.95 3,175,465.46 1,668,611.99 1,506,853.47 Accrued Expenses Accrued Interest 142,129.14 252,525.32 394,654.46 190,146.95 204,507.51 Accrued Payroll 85,406.31 24,047.16 109,453.47 86,453.16 23,000.31 Total Current Liabilities 2,820,281.96 2,339,899.75 5,160,181.71 3,475,820.42 1,684,361.29 Long -Term Liabilities Noncurrent Portion of Long-term Debt 2017 Bonds 16,675,000.00 - 16,675,000.00 - 16,675,000.00 2012 Bonds - 13,900,000.00 13,900,000.00 15,195,000.00 (1,295,000.00) 2003 Bonds - - - 465,000.00 (465,000.00) Bond Premium 2012 644,046.48 1,345,659.95 1,989,706.43 1,531,268.27 458,438.16 Pension Liability- Electric 3,083,440.00 - 3,083,440.00 4,226,202.00 (1,142,762.00) Pension Liability- Nat Gas - 1,027,813.00 1,027,813.00 1,408,734.00 (380,921.00) Accrued Vacation Payable 323,735.99 102,774.05 426,510.04 378,943.50 47,566.54 Accrued Severance 73,739.62 28,580.99 102,320.61 92,050.32 10,270.29 Deferred Outflows - Electric 794,370.00 - 794,370.00 569,910.00 224,460.00 Deferred Outflows - Nat Gas - 264,790.00 264,790.00 189,970.00 74,820.00 Total Long -Term Liabilities 21,594,332.09 16,669,617.99 38,263,950.08 24,057,078.09 14,206,871.99 Net Position Retained Earnings 43,927,538.69 25,052,282.18 68,979,820.87 66,516,304.34 2,463,516.53 Total Net Position 43,927,538.69 25,052,282.18 68,979,820.87 66,516,304.34 2,463,516.53 Total Liabilities and Net Position 68,342,152.74 44,061,799.92 112,403,952.66 94,049,202.85 18,354,749.81 Hutchinson Utilities Commission Cash -Designations Report, Combined 8/31/2018 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest August 2018 July 2018 Position Savings, Checking, Investments varies varies Total Operating Funds Debt Reserve Requirements Bond Covenants - sinking fund Debt Reserve Requirements Bond Covenants -1 year Max. P & I Total Reserve Requirement varies 29,219,646.69 28,687,909.40 531,737.29 29,219,646.69 28,687,909.40 531,737.29 2,592,512.54 2,374,798.24 217,714.30 2,188,694.02 2,188,694.02 - 4,781,206.56 4,563,492.26 217,714.30 Operating Reserve Min 60 days of 2018 Operating Bud. 5,868,920.00 5,868,920.00 Rate Stabalization Funds 1,024,043.29 1,024,043.29 PILOT Funds Charter (Formula Only) 1,251,469.00 1,251,469.00 Catastrophic Funds Risk Mitigation Amount 500,000.00 500,000.00 Capital Reserves 5 Year CIP ( 2018-2022 Fleet & Infrastructure Maintenance) 3,450,000.00 3,450,000.00 Total Earmarked Funds 12,094,432.29 12,094,432.29 YE YE YE YE YTD HUC 2014 2015 2016 2017 2018 Target Debt to Asset 28.8% 32.0% 32.2% 40.8% 38.6% Current Ratio 2.26 2.52 3.06 5.73 5.62 RONA 0.05% 1.31% 2.17% 1.80% 2.10% Ftt� Change in Cash Balance (From 12131114 to 813112018) Month End Electric Elec. Change Natural Gas Gas Change Total Total Change 8/31/2018 16,231,344 12,988,303 29,219,647 12/31/2017 23,213,245 (6,981,901) 10,702,689 2,285,614 33,915,934 (4,696,287) 12/31/2016 8,612,801 14,600,444 9,500,074 1,202,615 18,112,875 15,803,059 12/31/2015 6,170,790 2,442,011 9,037,373 462,701 15,208,163 2,904,712 12/31/2014 3,598,821 2,571,969 6,765,165 2,272,208 10,363,986 4,844,177 * 2017's Signifcant increase in cash balance is due to issuing bonds for the generator project. Hutchinson Utilities Commission Cash -Designations Report, Electric 8/31/2018 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest August 2018 July 2018 Position Savings, Checking, Investments varies varies varies 29,219,646.69 28,687,909.40 531,737.29 Total HUC Operating Funds 29,219,646.69 28,687,909.40 531,737.29 Debt Restricted Requirements Bond Covenants - sinking fund Operating Reserve Min 60 days of 2018 Operating Bud. Rate Stabalization Funds $400K-$1.2K PILOT Funds Charter (Formula Only) Catastrophic Funds Risk Mitigation Amount Capital Reserves 5 Year CIP ( 2018-2022 Fleet & Infrastructure Maintenance) Total Designated Funds 1,115,687.55 1,062,064.92 53,622.63 4,387,223.00 4,387,223.00 372,736.68 372,736.68 882,327.00 882,327.00 400,000.00 400,000.00 2,750,000.00 2,750,000.00 8,792,286.68 8,792,286.68 Excess Reserves Less Restrictions & Designations, Electric 6,323fl369.68 5fl952flO44.53 371fl325.15 YE YE YE YE YTD APPA Ratio HUC 2014 2015 2016 2017 2018 5K-10K Cust. Target Debt to Asset Ratio (* w/Gen.) 7.4% 13.2% 16.1% 36.1% 35.7% 50.1% Current Ratio 2.48 2.95 3.57 10.70 6.61 2.43 �I�IIIIIIII��IIIIIIIIII RONA -3.1% -1.2% -0.4% -0.1% -0.1% NA >0% Hutchinson Utilities Commission Cash -Designations Report, Gas 8/31/2018 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest August 2018 July 2018 Position Savings, Checking, Investments varies varies Total HUC Operating Funds Debt Restricted Requirements Bond Covenants - sinking fund Debt Restricted Requirements Bond Covenants -1 year Max. P & I Total Restricted Requirements varies 29,219,646.69 28,687,909.40 531,737.29 29,219,646.69 28,687,909.40 531,737.29 1,476,824.99 1, 312, 733.32 164,091.67 2,188,694.02 2,188,694.02 - 3,665, 519.01 3,501,427.34 164,091.67 Operating Reserve Min 60 days of 2018 Operating Bud. 1,481,697.00 1,481,697.00 Rate Stabalization Funds $200K-$600K 651,306.61 651,306.61 PILOT Funds Charter (Formula Only) 369,142.00 369,142.00 Catastrophic Funds Risk Mitigation Amount 100,000.00 100,000.00 Capital Reserves 5 Year CIP ( 2018-2022 Fleet & Infrastructure Maintenance) 700,000.00 700,000.00 Total Earmarked Funds 3,302,145.61 3,302,145.61 YE YE YE YE YTD HUC 2014 2015 2016 2017 2018 APGA Ratio Target Debt to Asset 55.6% 54.8% 51.5% 48.1% 43.1% TBD Current Ratio 2.07 2.17 2.59 2.72 4.42 TBD NN RONA 4.3% 4.7% 5.6% 5.0% 5.7% TBD cococococo O O O O O O N N N N O O 000, O 0 EC . . . . . . . . . 7 0 U d N a o Ln O O O Ln 0 O O L, N N 0 Ln N coS O M CO O I` M CO Ln N O Ln 0 0 a N O O) CO M CO N a CO � V V I� O) C d � � R 7 (� O O O O O O O O C O O 888888C y O OOOOOOOC y 15 O O O O O O O O C O O O O O O O O C M= E N N N N N N N N C a Q NM LUV OCOoo— N Ln O) CO O O O 2 8 V O O L!C N O O I— N o M I— c N co O) co coLn Ln N O C o V V V V m CO o o c Ln N N N N M M N N c N N N N N N N N C O O O O O O O O O C V O O O O O O O O C M O O O O O O O O C V O O O O O O O O C M O O O O O O O O C CO L(i L(i L(i L(i L(i L(i O L(i L( N N N N N N N N C Q Q Q Q Q Q Q Q Q Q Q Q Q Q z z z z z z z z z z z z z z W CO — 0 0 0 O O O N O O O O COMNOOOOOOMOCOO r 0 V 0 0 0 N I` O CO V 0 N O O O M N V I� CO M O) W O M N O CO CO CO V M M Ln O Ln Cl) CO O O) CO M O) � O 0 — O �CO CO � N M LD O CO O colcolcolO O O N O O O O CO CO N N O O O Lon O O O) O Lon O r Ni . 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V LU CO N M O V > Co Co Co o I� N = C(O N O W O N ` I— — W `� (6 (1) N a+ J u+ N J N M V N a n N O O O O O O O O O O O O N N O O O O O O N O O O O O O N O O O O O O N O O O O O O N O O O O O O N O O O O O O N O O O O O O N m >' N 'L" d O O N O O o N O N O 10 a y N I— O O) M M I-- N M O O) O O V V r R O) M LO M Ny ''...I O L � U � o � e N � o 0 0 0 0 o O O R CO N � � O � o V M O 0o CO N O _ e\e N m L N V M N 3 R NV O O N W,. N > c' N V o O fz N L] o 0 0 0 0 Q R n N N O o N O N O S,.,. M Ln CO N f� .'. M ' ON O M R M O n O V N> N N ii,` R L LN LN Cfl V CO I— � � I ~ C o N m Q U Y 0 F m (D O E Q ~ m 0 d C — (D U a+ e O ry O O D � U U E d o O C7 ELECTRIC DIVISION Operating Revenue August 2018 CLASS AMOUNT KWH /KWH Street Lights $0.38 7 $0.05429 Electric Residential Service $558,459.97 5,513,450 $0.10129 All Electric Residential Service $16,328.50 155,126 $0.10526 Electric Small General Service $187,821.88 1,860,112 $0.10097 Electric Large General Service $773,939.58 8,153,890 $0.09492 Electric Large Industrial Service $1,009,123.12 12,592,000 $0.08014 Total $2,545,673.43 28,274,585 $0.09003 Power Adjustment $0.00686 Rate Without Power Adjustment $0.08317 Electric Division Year -to -Date 02018$A--t 02017$A-t ®2018 KWH110 02017KWH110 23,000,000 22,000,000 21,000,000 20,000,000 19,000,000 18,000,000 17,000,000 16,000,000 15,000,000 14,000,000 13,000,000 12,000,000 11,000,000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 IL 2,000,000 1,000,000 0 Street Lights Residential All Elec. Small Gen. Large Gen. Large For Resale Total Resid. Srv. Srv. Industrial NOTE: Sales for resale includes capacity sales, market sales and Transalta sales. NATURAL GAS DIVISION Operating Revenue AUGUST 2018 CLASS AMOUNT MCF /$ MCF Residential $78,268.53 6,130 $12.76811 Commercial $72,189.82 8,424 $8.56954 Large Industrial $211,189.18 48,749 $4.33217 Total $361,647.53 63,303 $5.71296 Fuel Adjustment-$0.00178 Rate Without Fuel Adjustment $7.49296 Natural Gas Division Year -to -Date ® 2018 $ Amount 132017 $ Amount ® 2018 MCF 132017 MCF 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 6w-i 9T Gas Residential Gas Commercial Large Industrial Total eReliability I Monthly Statistics Page 1 of 6 Monthly Report - Hutchinson Utilities Hutchinson Utilities Commission Commission Year Minimum duration Substation 2018 Month Maximum duration Circuit 08 - August - ! Annual Report? Top-level Cause Remove Major Events? 0 Yes —Usc e 6e .-®-.m C_"J No https://reliability.publicpower.org/reports/monthly/utility/9l /?year=2018&month=8&is_an... 9/20/2018 eReliability I Monthly Statistics Page 2 of 6 IEEE 1366 Statistics Metric Aug 2018 Aug 2017 SAI DI 6.328 0.599 SAI F I 0.0463 0.00666 CAIDI 136.558 90 ASAI 99.9853% 99.9986% Momentary Interruptions 0 0 Sustained Interruptions 3 1 Circuit Ranking - Worst Performing Ranked by Outage Count Circuit Substation Fdr#14 Plant 1 Fdr#18 Plant 1 Ranked by Customer Interruptions Circuit Substation Fdr#18 Plant 1 Fdr#14 Plant 1 Number of Outages 2 1 Customer Interruptions 228 103 Ranked by Customer Minutes of Duration Circuit Substation Customer Minutes of Duration Fdr#18 Plant 1 26,904 Fdr#14 Plant 1 18,297 https://reliability.publicpower.org/reports/monthly/utility/9l /?year=2018&month=8&is_an... 9/20/2018 eReliability I Monthly Statistics Page 3 of 6 https://reliability.publicpower.org/reports/monthly/utility/9l /?year=2018&month=8&is_an... 9/20/2018 eReliability I Monthly Statistics Page 4 of 6 Historical Monthly SAIDI Chart 40 — ................. mm. m...mmm. m.m ...... ....... ...... ...... ..- ... 35 l 'Monthly SAIDI :Average of monthl SAIDI values 30 25 20 15 10 5 0 ...._._ ��� _ � .mm...... �..MMMMm....... Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018 2018 2018 Historical Monthly SAIFI Chart 1.0 0.8 0.6 0.4 0.2 SAIFI values 0.0 1 ._—.. — ., w .. Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018 2018 2018 https://reliability.publicpower.org/reports/monthly/utility/91 /?year=2018&month=8&is_an... 9/20/2018 eReliability I Monthly Statistics Page 5 of 6 Causes Ranked by Count Cause Electrical Failure Equipment Damage Causes Ranked by Duration Cause Electrical Failure Equipment Damage Count Duration 41,016 4,185 https://reliability.publicpower. org/reports/monthly/utility/9l /?year=2018&month=8&is_an... 9/20/2018 eReliability I Monthly Statistics Page 6 of 6 Top 3 Outages for the Month Customers Customer Minutes of Address Interrupted Duration Interruption Start Date 95 Academy 228 118 26,904 08/08/2018 Lane NW 201 Main St S. 72 196 14,112 08/20/2018 111 Hassan St 31 135 4,185 08/22/2018 SE Total Customers Affected for the Month: Average Customers Affected per Outage: 331 110.333333 https:llreliability.publicpower.org/reports/monthly/utility/9l /?year=2018&month=8&is_an... 9/20/2018 Electric Production Work Order Descrip ion Materials 11708 Units 6 & 7 $ 14,369,702.00 $ 11801 Unit 8 Building Spancrete Joint Replacement 10,000.00 11802 Unit 1 Control Building Air Conditioning 15,000.00 11803 Plant 1 Cooling Tower Piping Replacement 350,000.00 11804 Soft Start Motor Controllers for Air Supply Fan 8,000.00 11805 Replace Stage 3-5 HPC Blades 150,000.00 11806 Unit 1 CEMS Data Logger 30,000.00 11807 Plant 1 Pipe Replacement Engineering 7,000.00 Total Total Percentage Labor Budgeted Actual Difference Com Jp eted - $ 14,369,702.00 $ 10,827,733.23 $ (3,541,968.77) 65% $ 10,000.00 - $ (10,000.00) $ 15,000.00 5,461.96 $ (9,538.04) 30% $ 350,000.00 - $ (350,000.00) 2,000.00 $ 10,000.00 10,565.96 $ 565.96 100% $ 150,000.00 - $ (150,000.00) $ 30,000.00 - $ (30,000.00) $ 7,000.00 - $ (7,000.00) $ 14,939,702.00 $ 2,000.00 $ 14,941,702.00 $ 10,843,761.15 $ (4,097,940.85) Electric Distribution Work Total Total Percentage Order Descri„to„n Materials Labor Bu; meted Actual Difference Com,oleted 21801 Pole Repair or Replacement 15,000.00 15,000.00 - $ (15,000.00) 21802 Hutch Substation Roof Replacement 10,000.00 10,000.00 - $ (10,000.00) 21803 Station Equipment 10,000.00 10,000.00 19,415.38 $ 9,415.38 100% 21804 Duct for Reconductor 15,000.00 65,000.00 80,000.00 7,836.18 $ (72,163.82) 15% 21805 Uponer New Feed 85,000.00 50,000.00 135,000.00 33,377.15 $ (101,622.85) 70% 21806 Feeder 16 and 17 Reconductor 30,000.00 70,000.00 100,000.00 34,674.29 $ (65,325.71) 25% 21807 MITGI New Feed 80,000.00 35,000.00 115,000.00 60,058.60 $ (54,941.40) 75% 21808 New Developments 50,000.00 50,000.00 89,118.40 $ 39,118.40 75% 21809 Century Court Apartments 20,000.00 15,000.00 35,000.00 7,759.67 $ (27,240.33) 30% 21810 Century Avenue Trail Work Feeder 22 10,000.00 10,000.00 20,000.00 5,032.75 $ (14,967.25) 50% 21811 New Developments Transformers 50,000.00 50,000.00 15,175.55 $ (34,824.45) 25% 21812 Plant 14160 Generator Transformer Repl 70,000.00 5,000.00 75,000.00 $ (75,000.00) 21813 Transformer Replacements 40,000.00 14,000.00 54,000.00 6,354.30 $ (47,645.70) 15% 21814 Century Court Apartments 10,000.00 3,000.00 13,000.00 $ (13,000.00) 21815 Meters 30,000.00 �� - 30,000.00 18,227.68 $ (11,772.32) 50% $ 525,000.00 $ 267000.00 ,,,y $ 792000.00 $ 297029.95 $ (494,970.0.......... .05) Administrative Total Work Order Description Budgeted 51801 Replace 2008 Super Duty Bucket Truck 140,000.00 51802 Replace 2007 Metering Van 25,750.00 51803 Replace 2006 Production Dodge Dakota 25,000.00 51804 Replace 2006 Ford F150 25,750.00 51805 Replace Vehicle #433 37,080.00 $ 253,580.00 Total Percentage Actual Difference Completed 140,000.00 23,887.64 1,862.36 100% 26,079.22 (1,079.22) 100% 26,079.22 (329.22) 100% 37,080.00 $ 76,046.08 $ (177,533.92) Natural Gas Work Total Total Percentage Order De„s,,,crlp;ion Materials Labor Budgeted Actual Difference Comlroleted 61801 Transmission Lateral to HCP - ROW Easements $ 500,000.00 $ 4,200.00 $ 504,200.00 $ $ (504,200.00) 61802 Transmission Lateral to HCP - Materials and Permits 1,000,000.00 4,200.00 1,004,200.00 $ (1,004,200.00) 61803 Lafayette Interconnect Metering Upgrade 90,000.00 18,000.00 108,000.00 12,510.03 $ (95,489.97) 10% 61804 Locator 6,000.00 - $ 6,000.00 7,674.16 $ 1,674.16 100% 61805 Misc Developments and Improvements 125,000.00 28,000.00 $ 153,000.00 44,881.34 $ (108,118.66) 40% 61806 Regulator Station Improvements 25,000.00 4,900.00 $ 19,900.00 3.21 $ (19,896.79) 61807 Service Lines 55,000.00 31,500.00 $ 86,500.00 47,145.90 $ (39,354.10) 60% 61808 Meters, AMI, and all Fittings 90,000.00 4,900.00 $ 94,900.00 79,849.52 $ (15,050.48) 80% 61809 Industrial Meteringand Regulation g 80,000.00 7,000DO _... $ 87,000 00 101, 255 75 $ 14,255.75 90% $ 1,961,000.00 $ 102,700.00 $ 2,063,700.00 $ 293,319.91 $ (1,770,380.09) OS HUTCHINSON UTILITIES COMMISSION 9T, Board Action Form iiiiiiiiiiiiiiiiiiiiiillillillillillillilliillillillillillillilliilliillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliilllI Agenda Item: Review Policies Presenter: Jared Martig Agenda Item Type: Time Requested (Minutes): 5 Review Policies Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: As part of HUC's standard operating procedures, a continual policy review is practiced. This month, the following policies were reviewed and no changes are recommended on these policies at this time: i. Errors in Billing ii. Pay Periods, Paydays iii. Payroll Deductions iv. Overtime V. Compensation Plan vi. Travel Expenses BOARD ACTION REQUESTED: None Fiscal Impact: Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: RemainingCost: Errors in Billing Overcharged customer accounts will be credited on the next statement or refunded on the final billing. Overcharges may only be refunded within one year of the billing error occurrence. Undercharged customer accounts may be billed for a correction within one year of the billing error occurrence and may be billed on a separate invoice, with an explanation of charges. EXEMPT PAY PERIOD, PAYDAYS All employees are paid every other Thursday for the two -week period ending the preceding Sunday at 12:00 midnight. Should a payday fall on a holiday, paychecks/direct deposits will be available the preceding day. NON-EXEMPT PAY PERIOD, PAYDAYS All employees are paid every other Thursday for the two -week period ending the preceding Sunday at 12:00 midnight. Should a payday fall on a holiday, paychecks/direct deposits will be available the preceding day. EXEMPT PAYROLL DEDUCTIONS HUC is required to deduct federal and state income taxes, Social Security tax, and any court - ordered deductions such as child support from paychecks/direct deposits. HUC is also required to deduct the employee's contribution to the Public Employee Retirement Association (PERA). Other deductions may be made from a paycheck/direct deposit such as deferred compensation, and insurance premiums. These payroll deductions may be made only with the employee's written consent. NON-EXEMPT PAYROLL DEDUCTIONS HUC is required to deduct federal and state income taxes, Social Security tax, and any court - ordered deductions such as child support from paychecks/direct deposits. HUC is also required to deduct the employee's contribution to the Public Employee Retirement Association (PERA). Other deductions may be made from a paycheck/direct deposit such as union dues, deferred compensation, and insurance premiums. These payroll deductions may be made only with the employee's written consent. EXEMPT OVERTIME Exempt employees may earn compensatory time on an hour -for -hour basis for all hours worked in excess of 40 hours per week. Exempt employees must use their compensatory time by December 31 of the year in which it is earned or it will be forfeited. Accrued compensatory time shall not be paid out to exempt employees upon separation from employment. NON-EXEMPT OVERTIME See Union Contract. EXEMPT COMPENSATION PLAN The Hutchinson Utilities Commission (HUC) has considered the existing positions for HUC and the current economic conditions. For each position there shall be a title, job description, and a pay scale level assigned. This plan covers all regular full-time, exempt positions/employees only. Plan Objectives To establish and maintain a compensation plan that enables HUC to be highly competitive within our defined industry. To lead or exceed the market in attracting and retaining qualified, reliable and motivated employees who are committed to quality and excellence for those we serve. To ensure, subject to the financial condition of HUC, that employees receive fair and equitable compensation in relation to their individual contributions to HUC's success. To follow the principles of pay equity in establishing and maintaining pay relationships among positions. To ensure program flexibility necessary to meet changing economic, competitive, technological, and regulatory conditions encountered by HUC. To balance compensation and benefit needs with available resources. Open Salary Range HUC shall adopt an Open Salary Range compensation plan that will allow for maximum flexibility since there are not defined or pre -calculated "steps". Employee movement is based solely on performance. The open salary range concept rewards good and exceptional performers and advances employees to the market rate more quickly. Allocation of New Positions When a new position is created for which no appropriate description exists or when the duties of an existing position are sufficiently changed so that no appropriate description exists, the Commission, after recommendation of the Customer/HR Manager, shall cause an appropriate job description -specification to be written for said position. Pay Scales Pay scales will be adjusted on an annual basis in accordance with adjustments made in the labor agreement. Exempt Employees Each position will have a nine -month probationary period. After satisfactory completion of the probationary period, an increase may be granted as warranted by the annual performance appraisal. Thereafter, consideration for increases will be given annually at the first of the year. The General Manager reserves the discretion to adjust individual rates as required. The Commission will determine any pay increase for the General Manager. Consideration for market adjustment will be made each January 1. The General Manager shall maintain the discretion to hire at any point based on the qualifications, experience, market conditions or other relevant factors, to secure the best candidate for the position. Performance Evaluations For all regular full-time employees, a performance appraisal or evaluation will be made on an annual basis. An evaluation made by the employee's director, manager or supervisor shall be submitted in writing to the employee and the General Manager. All evaluations will be forwarded to the Customer/HR Manager for filing in the employee files. Evaluations shall be based upon the performance of the individual in the position measured against established job performance criteria. Such criteria may include level of knowledge, skills, ability, quality of work, personal work traits, compliance with established HUC or departmental rules and regulations or any other criteria that is indicative of performance. The performance appraisal process is the application of performance standards to past performance. In appraising an employee, these are the basic levels of performance: 5 — Outstanding — Performance is exceptional in all areas and is recognizable as being far superior to others. 4 — Exceeds Job Requirements — Results clearly exceed most positions requirements. Performance is of high quality and is achieved on a consistent basis. 3 — Meets Job Requirements — Competent and dependable level of performance. Meets performance standards of the job. 2 — Needs Improvement — Performance is deficient in certain area(s). Improvement is necessary. 1— Unsatisfactory — Results are generally unacceptable and require immediate improvement. Results - The results of the exempt employee's evaluation will normally have the following effect on his/her salary per the following Merit Increase Guide: Oto1.0— 0% 1.1 to 1.99 — Straight 1% increase 2.0 to 2.75 — -1% of Union % increase 2.76 to 3.5 — Union % increase 3.51 to 4.25 — +1% of Union % increase 4.26 to 5.0 — +2% of Union % increase Market Conditions Notwithstanding any language to the contrary, HUC retains the right to deviate from the pay plan when, in the sole judgment of the Commission, market conditions or other circumstances dictate such a decision. Market conditions are defined as the availability of a particular position. Eligible employees include all non -represented employees except those who have been subject to disciplinary action per the HUC Employee Handbook as follows: An additional consequence of disciplinary action more severe than oral reprimand will be the permanent loss of the January 1 market adjustment in the calendar year following such disciplinary action. This will occur unless the Director in charge and the General Manager decide otherwise. Annual Market Adjustment Consideration On an annual basis, a market survey will be reviewed. As a result of the current year marketplace, an additional increase may be deemed necessary. The General Manager maintains final approval responsibility for salary increases. Any market adjustment on January 1 of any year shall be separate and apart from the individual merit increases. In determining a recommendation for an annual market adjustment, the General Manager shall consider, at least the following information: 1. U.S. and Minneapolis/St. Paul consumer -priced index changes (CPIU & CPIW) 2. Social Security calculation of cost of living increase 3. Unemployment rate 4. Employee turnover rate 5. Area wage survey 6. Legislative growth factor constraints 7. Bargaining Unit Increase Modification of the Plan HUC reserves the right to modify any or all of the components or to vary from any of the components of the Compensation Plan at its discretion and at any time. Review of the Plan It is recommended that HUC's Customer/HR Manager annual review and maintain its Position Classification Plan. As deemed necessary, the Customer/HR Manager would recommend any changes to the Commission. It is further recommended that a comprehensive review be completed every five years. NON-EXEMPT COMPENSATION PLAN Performance Evaluations For all regular full-time employees, a performance appraisal or evaluation will be made on an annual basis. An evaluation made by the employee's director, manager, or supervisor will be submitted in writing to the employee and the General Manager. All evaluations will be forwarded to the Customer/HR Manager for filing in the employee files. Evaluations shall be based upon the performance of the individual in the position measured against established job performance criteria. Such criteria may include level of knowledge, skills, ability, quality of work, personal work traits, compliance with established HUC or departmental rules and regulations or any other criteria that is indicative of performance. The performance appraisal process is the application of performance standards to past performance. In appraising an employee, these are the basic levels of performance: 5 — Outstanding — Performance is exceptional in all areas and is recognizable as being far superior to others. 4 — Exceeds Job Requirements — Results clearly exceed most positions requirements. Performance is of high quality and is achieved on a consistent basis. 3 — Meets Job Requirements — Competent and dependable level of performance. Meets performance standards of the job. 2 — Needs Improvement — Performance is deficient in certain area(s). Improvement is necessary. 1— Unsatisfactory — Results are generally unacceptable and require immediate improvement. EXEMPT TRAVEL EXPENSES Business Related Vehicle Operation Travel within the State shall be by HUC vehicle if possible. If a HUC vehicle is not available for in -State travel, or is not practical to use, then an employee may seek approval from Director or Manager to use a personal vehicle for transportation. The following rules shall apply: • The employee shall be reimbursed for mileage at the current IRS mileage reimbursement rate. • HUC is not liable for damage to personally owned vehicles used for HUC business. • HUC may request proof of insurance from employees who use personally owned vehicles on HUC business. • Travel to and from events should be by the most direct route possible. • Employees are expected to return in a timely manner. Travel outside of the State must be approved by the employee's Director or Manager. If it is appropriate to drive, the employee shall follow the same rules as travel within the State. Whether a HUC vehicle, or a personal vehicle is used, the employee is responsible for any traffic or parking citations the employee receives while operating such vehicle on HUC business. Employees who drive a HUC vehicle home may use the vehicle only for HUC business purposes. Employees who are members of the Hutchinson Fire Department or Rescue Squad may use a HUC vehicle to travel to the fire station to respond to a call when the firefighter or rescue squad member is on the job with HUC at the time of the call. If the firefighter or rescue squad member is at HUC, they must use a personal vehicle to respond to the call. Air Travel and Rental Vehicles It is recognized that air travel may be a necessary part of conducting business for HUC. In the circumstances of air travel, the following rules shall apply: • Commercial carriers shall be used. • Tickets should be at "standard" or "coach" class. • Travel to and from the airports shall follow the Business Related Vehicle Operation section. • Travel outside of the State must be approved by the employee's Director or Manager. • Only employee's air travel expenses shall be prepaid, charged, or reimbursed at cost. Rental vehicles may be used when traveling outside of the State. Reservations of a rental vehicle shall be made at the same time air travel is arranged. Renting a vehicle must be approved by the employee's Director or Manager. Overnight Stays, Meals and Entertainment Expenses Hotel reservations shall be made prior to the employee leaving for out of town travel. The following items shall apply to overnight stays: • Hotel accommodations for the employee must be approved by the employee's Director or Manager. • In the event the employee is traveling on HUC business and experiences inclement weather, to the extent that it is not safe to travel, or the employee is not able to travel due to some circumstance that is beyond their control, then no prior approval for hotel accommodations are necessary. • Hotel rooms at convention or seminar sites are approved accommodations. • Reimbursement is limited to employees and business related guests, and must be directly related to business. The following shall apply to expenses associated with meals: • Meals shall be limited to a maximum of $50 per day, including meal tips. The $50 per day is a maximum and not an allowance. • Meal reimbursement is limited to employees. • Expenses associated with alcoholic beverages shall not be reimbursed. Expense Report An expense report shall be filled out for all reimbursement requests for purchases using personal funds. Unsupported expenses using personal funds shall not be reimbursed by HUC. An expense report shall also be filled out for all company travel purchases. Unsupported expenses on an HUC credit card shall be reimbursed to HUC by the employee. The expense report must state the type of expense (meal, travel, hotel, etc.), the date and the business purpose. Alcohol is not a reimbursable expense. It is the employee's responsibility to obtain an itemized receipt. The expense report shall be approved by your Director, Manager, or Supervisor before submitting to the Financial Manager. NON-EXEMPT TRAVEL EXPENSES Business Related Vehicle Operation Travel within the State shall be by HUC vehicle if possible. If a HUC vehicle is not available for in -State travel, or is not practical to use, then an employee may seek approval from Director or Manager to use a personal vehicle for transportation. The following rules shall apply: • The employee will be reimbursed for mileage at the current IRS mileage reimbursement rate. • HUC is not liable for damage to personally owned vehicles used for HUC business. • HUC may request proof of insurance from employees who use personally owned vehicles on HUC business. • Travel to and from events should be by the most direct route possible. • Employees are expected to return in a timely manner. Travel outside of the State must be approved by the employee's Director or Manager. If it is appropriate to drive, the employee shall follow the same rules as travel within the State. Whether a HUC vehicle, or a personal vehicle is used, the employee is responsible for any traffic or parking citations the employee receives while operating such vehicle on HUC business. Employees who drive a HUC vehicle home may use the vehicle only for HUC business purposes. Employees who are members of the Hutchinson Fire Department or Rescue Squad may use a HUC vehicle to travel to the fire station to respond to a call when the firefighter or rescue squad member is on the job with HUC at the time of the call. If the firefighter or rescue squad member is at HUC, they must use a personal vehicle to respond to the call. Air Travel and Rental Vehicles It is recognized that air travel may be a necessary part of conducting business for HUC. In the circumstances of air travel, the following rules shall apply: • Commercial carriers shall be used. • Tickets should be at "standard" or "coach" class. • Travel to and from the airports shall follow the Business Related Vehicle Operation section. • Travel outside of the State must be approved by the employee's Director or Manager. • Only employee's air travel expenses will be prepaid, charged, or reimbursed at cost. Rental vehicles may be used when traveling outside of the State. Reservations of a rental vehicle shall be made at the same time air travel is arranged. Renting a vehicle must be approved by the employee's Director or Manager. Overnight Stays and Meals Hotel reservations shall be made prior to the employee leaving for out of town travel. The following items shall apply to overnight stays: • Hotel accommodations for the employee must be approved by the employee's Director or Manager. • In the event the employee is traveling on HUC business and experiences inclement weather, to the extent that it is not safe to travel, or the employee is not able to travel due to some circumstance that is beyond their control, then no prior approval for hotel accommodations are necessary. • Hotel rooms at convention or seminar sites are approved accommodations. • Reimbursement is limited to employees and business related guests, and must be directly related to business. The following shall apply to expenses associated with meals: • Meals shall be limited to a maximum of $50 per day, including meal tips. The $50 per day is a maximum and not an allowance. • Meal reimbursement is limited to employees. • Expenses associated with alcoholic beverages will not be reimbursed. Expense Report An expense report shall be filled out for all reimbursement requests for purchases using personal funds. Unsupported expenses using personal funds will not be reimbursed by HUC. An expense report shall also be filled out for all company travel purchases. Unsupported expenses on an HUC credit card shall be reimbursed to HUC by the employee. The expense report must state the type of expense (meal, travel, hotel, etc.), the date and the business purpose. Alcohol is not a reimbursable expense. It is the employee's responsibility to obtain an itemized receipt. The expense report shall be approved by your Director, Manager, or Supervisor before submitting to the Financial Manager. OS HUTCHINSON UTILITIES COMMISSION 9T, Board Action Form iiiiiiiiiiiiiiiiiiiiiillillillillillillilliillillillillillillilliilliillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliilllI Agenda Item: Approve Policy Changes Presenter: Jared Martig Agenda Item Type: Time Requested (Minutes): 5 App Changes to Policies Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: As part of HUC's standard operating procedures, a continual policy review is practiced. The following revisions to the policies below are recommended. i. Payment of Your Bill ii. Automatic Bill Payment Plan iii. Worker's Compensation BOARD ACTION REQUESTED: Approve Policy Changes Fiscal Impact: Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: RemainingCost: Payment of Your Bill Payments are due by the date indicated on the statement. Payment Locations • HUC business office at 225 Michigan Street Southeast • Drop box at either the HUC business office or Hutchinson City Center Payment Methods • Cash, check or money order • automated phone system at (320)587-4746, Option #23 with VISA/MasterCard/ Discover/E-check • automatic bank payment plan(Savings/Checking Account) • online at www.hutchinsonutilities.com • online reoccurring credit card payment When paying in any manner other than cash, no change will be given. No second party or post-dated checks will be accepted and checks will not be held. Aug 466lhGRGF9d linuelllid payment due to nonsuffi6enl funds or oUher 6rcuimslances is treated as a non-payment. If notification of the s_hGR��,e4 linuelllid payment is received by HUC, the customer will be charged a $30 processing fee. It IlDeyling Ihsy ureeeeuriJind cre6t/delzslit card, Uhe custorner uneeds to eeneell Uh 61, credit/delzslt card liimimedlietelly iit Uiere has Il)een an address ell ange. Iheun Uiere lie e ell ange in Uhe crediit/dellzslit card linforumellion Uhet lie used for reoccurring Deyu en1s, Uhe customer dill �,)e reqUired to update Uhe systeiim wuUh Uhe new cre t 6z)s �t card lintori anion For billing questions, contact HUC customer service via e-mail at HUCbilling@ci.hutchinson.mn.us. Automatic Bill Payment Plan Customers may authorize automatic bill payment through ACH withdrawals from a checking/savings account, or with the use of a credit/debit card. These payments are withdrawn on the date the bill is due. (Ih: nler add new ppDaragrph) To authorize the withdrawals or automatic payment from a cIhecklng/savings account, the customer must complete an Authorization fer Autemat:::1aYR4eRt. form, Whli lhh lis available at the HUC' ° business office or on the HUC website. L.. a uUh orz�c autornaLc Dayimenl WUI a reoccurring rc lit/deL)lt card, vl§t UIh e Ih....W If ppDayling Ihsy reoccuriJing rcy'lt/delL)s t card, His custorner uneeds to canc6� Uh 61, rcy'lit/deL)lt card liu a cy'Iat6y lif ilh ere Ih a Ih)een an address 6Ih ange. Ihcun ilh ere lis a 6Ih ange in His cre6t/deL)lt card infori aLon Hhat lis usedfor reoccurring payments, UIh e customer WHl �,)e uregUircd to update Uhe systeiim WUh His new cre t eL)s �t card unf ri aIli n Sc.ff ing up, Ih ang� inn and canc6Hlng reoccuriJing rcy'lit/deL)lt card liunf rimaLi n can ony Ih,sc The customer will receive their monthly utility billing statement showing the payment amount to be withdrawn. The customer may contact the HUC Customer Service Department before the amount is withdrawn to dispute the billing or with any questions. The customer will have approximately 10 days to review their bill before the money is withdrawn. If a customer's payment is dishonored for two consecutive months, the customer will be removed from the automatic payment plan and so notified. A service charge of $30 will be assessed to the customer's account for each dishonored payment occurrence. EXEMPT WORKER'S COMPENSATION An employee who is injured on the job or becomes ill due to job -related reasons is eligible for worker's compensation benefits. HUC's worker's compensation insurance provider shall pay the employee approximately 2/3 of the weekly gross wage or salary lost due to injury or illness and HUC shall pay the additional 1/3 of the weekly gross wage for up to 120 work days. Thereafter, the employee may use accrued sick leave, vacation leave, or compensatory time to pay the additional 1/3 lost wage or salary. PERA and FICA are not deducted from the worker's compensation portion of the paycheck. NON-EXEMPT WORKER'S COMPENSATION An employee who is injured on the job or becomes ill due to job -related reasons is eligible for worker's compensation benefits. HUC's worker's compensation insurance provider will pay the employee approximately 2/3 of the weekly gross wage or salary lost due to injury or illness and HUC siudl will pay the additional 1/3 of the weekly gross wage for up to 120 work days. Thereafter, the employee may use accrued sick leave, vacation leave, or compensatory time to pay the additional 1/3 lost wage or salary. PERA and FICA are not deducted from the worker's compensation portion of the paycheck. HUTCHINSON UTILITIES COMMISSION���� Board Action Form �'Ylkll'M1'k� Agenda Item: Approve Req #007716 to Braun Intertec Corp for Special Testing and Inspections Presenter: Randy Blake Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The City of Hutchinson building/zoning department requires special testing of installed concrete and steel structures which are part of the mechanical installation of our new units 6 and 7. Braun Intertec was hired by HUC back in 2012 to perform a geo-technical evaluation of the construction area when unit 5 was installed so they have a unique understanding of the site. In an effort to keep the building permit process flowing with no further delays, I have taken on the responsibility of procuring the special testing and inspections portion due to not having a contractor chosen at this time. This cost is part of the overall project. BOARD ACTION REQUESTED: Approve Requisition #007716 to Braun Intertec Corporation for special testing and inspections Fiscal Impact: $28,019.00 Included in current budget: Yes Budget Change: No PROJECT SECTION: Total Project Cost: $28,019.00 Remaining Cost: 0 %rom z HUTCHINSON UT'IIILIIT'IIIE'S Note PURCHASE REQUISITION HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 BRAUN INTERTEC CORPORATION 11001 HAMPSHIRE AVE S MINNEAPOLIS, MN 55438 Description: Date Requisition No. 09/11 /2018 007716 Required by: Requested by: RBlake Item No. Part No. Description Qty Unit Due Date Unit Price Ext. Amount SPECIAL TESTING AND INSPECTIONS UNIT 6&7 - SPECIAL TESTING AND INSPECTIONS 1 FOR UNITS 6 AND 7 MECHANICAL 1.00 EA 12/10/2018 $28,019.000 $28,019.00 INSTALLATION PER QUOTE # QTB085187 BY RICHARD FRITZ MFG. PART: Total: 28,019.00 Date Printed: 09/11/2018 Requisitioned By: RBlake Page: 1/1 Braun Intertec Corporation Phone: 952.995.2000 Ihn IYw 11001 Hampshire Avenue S Fax: 952.995.2020 INTERTE(,� Minneapolis, MN 55438 Web: braunintertec.com The Science You Build On. September 5, 2018 Mr. Randy Blake Hutchinson Utilities Commission 225 Michigan St. SE Hutchinson, MN 55350 Re: Proposal for Special Inspection and Testing Services HUC Plant 1 Units 6 & 7 Installation 44 4th Avenue NE Hutchinson, Minnesota Dear Mr. Blake: Proposal QTB085187 Braun Intertec Corporation is pleased to submit this proposal to provide special inspections and testing services for the HUC Plant in Hutchinson, Minnesota. We have completed the geotechnical evaluation, so we have a unique understanding of the site and construction challenges. We can aid the construction team by applying this experience and transferring our knowledge developed during the design phase which will provide professional continuity to the construction. Our work on the project to date gives us familiarity with the project team and design development which allows us to understand some of the considerations used when developing the projects design. Our Understanding of Project We understand this project will include the construction of 2 new Caterpillar 9.75 MW gen-sets. Available Information This proposal was prepared using the following documents and information. ■ Project plans and specifications prepared by HDR Engineering, Inc., dated August 22, 2018. ■ Special Inspection and Testing Schedule prepared by City of Hutchinson. ■ A geotechnical report, BL-11-06483A, prepared by Braun Intertec Corporation, dated April 12, 2012. k/k/t 0t", Hutchinson Utilities Commission Proposal QTB085187 September 5, 2018 Page 2 Project Approach and Staff Qualifications Special Inspections Braun Intertec has adopted the International Code Council (ICC) Model Program for Special Inspection to develop the guiding principles for our special inspection program. This model was selected because it was designed by the ICC to assist owners, contractors and building officials in the understanding, administration and enforcement of the special inspection requirements of the International Building Code (IBC). Currently, there are ICC certifications for soils, reinforced concrete, structural masonry, pre- tension/post-tension (pre -stressed) concrete, spray -applied fireproofing, structural steel and bolting, and structural welding. Qualifications and Experience ICC certified special inspectors will provide special inspections. An ICC certified special inspector is one who has successfully demonstrated their ability to understand the IBC, construction practices and how to read and understand construction documents. Through experience and examination, our ICC certified special inspectors have demonstrated their ability to provide special inspection services. Inspections and Reporting Our special inspectors summarize the nature, extent and results of special inspection activities at the time they are performed on Special Inspection Daily Report forms submitted electronically to the general contractor's on -site personnel for review and records. These records can also be transmitted electronically to others who may want to review these documents on an agreed upon schedule. When unresolved discrepancies are noted, we will document the issues and work with the design and construction team to bring them to resolution. Special inspection final reports will be prepared and submitted upon completion as required by the requirements of the IBC. Communications Braun Intertec special inspectors will communicate the results of their inspections to the contractor and our supervising engineer each day special inspections are performed. We strive to have our special inspectors develop a working relationship with the project's structural engineer -of -record. We may attempt contact with the structural engineering consultant periodically to review the work being performed and to request clarifications and direction on any item that may require it. Construction Materials Testing Qualified technicians working under the direction of a professional engineer will provide the services. Experience and certification information is available upon request once we are provided with schedule information. Concrete technicians assigned to the project are ACI Concrete Field Testing Technician — Grade I certified to conduct the required concrete testing. Soil technicians are certified to use a nuclear gauge for soil density testing, so test results can be determined on site and evaluated once the required laboratory testing is completed. Field test results will be verbally reported daily to the general contractor on site, with written field and laboratory reports distributed shortly after. Hutchinson Utilities Commission Proposal QTB085187 September 5, 2018 Page 3 Scope of Services Services are performed under the direction of a licensed professional engineer, on a periodic basis, depending on the construction schedule and when they are requested by the general contractor. After reviewing available information to determine compliance with project plans and/or specifications, other design or construction documents, and applicable ASTM and other industry standards, our scope of services for the project will be limited to the tasks defined below. Soil Related Services Observe and evaluate the soils exposed in the bottoms of excavations to determine if the soils are similar to those encountered with the geotechnical evaluation and suitable for support of foundations. Our engineer can provide consultation for conditions that appear to differ from the geotechnical evaluation. Test compacted fill placed below slabs, in utility trenches, and in areas for which compaction specifications have been provided, to determine if the relative compaction was achieved. Engineering oversight and review of the services provided. Deep Foundations Related Services ■ Observe installation of drilled shafts on a continuous basis. Engineering oversight and review of the services provided. Concrete Related Services ■ Observe concrete reinforcement placement. ■ Sample and test the plastic concrete for slump, air content, temperature and prepare test cylinders for laboratory compressive strength testing with ACI level 1 field technicians. We will perform concrete testing on structural items as required by the IBC. ■ Observe the concrete placement and test sample preparation. ■ Perform laboratory compressive strength testing of the concrete samples. ■ Observe the installation of post -installed anchors on a periodic basis. Structural Steel Related Services ■ Observe and test the structural steel welded and bolted connections in the field. ■ Observe and test the metal decking connections for orientation, sidelap fasteners, the hold down connections. ■ Observe and test the precast concrete welded or bolted connections. ■ Observe and document the installation of the base plate anchor bolts. Engineering Consulting and Project Communication and Reporting Services ■ Provide engineering consulting services, review test results and observations reports, and prepare required final reports. ■ Management, including scheduling of our field personnel and communication with the contractor, owner, building official, and design team. Hutchinson Utilities Commission Proposal QTB085187 September 5, 2018 Page 4 Transmit results to the project team on weekly basis to the contractor, owner, building official, fabricators and design team. Basis of Scope of Work The costs associated with the proposed scope of services were estimated using the following assumptions. If the construction schedule is modified or the contractor completes the various phases of the project at different frequencies or durations than shown in this proposal, we may need to adjust the overall cost accordingly. The scope of work and number of trips required to perform these services are as shown in the attached table. Notable assumptions in developing our estimate include: ■ This project will begin in the fall of 2018. ■ Assumptions regarding the number of trips for special inspections and testing are outlined in the attached cost estimate table. As the contractor's schedule becomes available and designs are finalized, please review this proposed scope of work to determine if the project's needs and budget will be met. ■ Concrete placements for the drilled shafts will be observed throughout the duration by our technician. ■ The inspection of the reinforcement associated with structural concrete will be performed immediately prior to testing of the concrete with no additional trips or time incurred. ■ We assume that the drilled shafts will be installed at a rate of 2 per day. ■ We assume the structural steel fabricator will be AISC certified and review of quality control manual or inspections of the fabrication shop are not required. If this assumption is not correct, please call us and we will provide a cost estimate for the fabrication shop inspections. ■ No special site specific training or gear is required to complete our scope of services. ■ Parking will be available on site for our vehicles. ■ You, or others you may designate, will provide us with current and approved plans and specifications for the project. Modification to these plans must also be sent to us so we can review their incorporation into the work. ■ We will require a minimum of 24 hours' notice for scheduling inspections for a specific time. Shorter than 24 hours' notice may impact our ability to perform the requested services, and the associated impacts will be the responsibility of others. Cost We will furnish the services described in this proposal for an estimated fee of $28,019. A tabulation showing hourly and unit rates associated with our proposed scope of services is attached. To the extent possible, units and hours were reviewed with representatives of the contractor to determine if time frames are consistent with their expectations for completing the various activities. The actual cost of our services will be based on the actual units or hours expended to meet the requirements of the project documents. Hutchinson Utilities Commission Proposal QTB085187 September 5, 2018 Page 5 This cost estimate was developed with the understanding that the scope of services defined herein will be required and requested during our normal work hours of 7:00 a.m. to 4:00 p.m., Monday through Friday. Services that we are asked to provide to meet the project requirements or the contractor's construction schedule outside our normal work hours will be invoiced using an overtime rate factor. The factor for services provided outside our normal work hours or on Saturday will be 1.25 times the normal hourly rate for the service provided. The factor for services provided on Sunday or legal holidays will be 1.5 times the normal hourly rate for the service provided. We have not included premiums for overtime; however, we recommend that allowances and contingencies be made for overtime charges based on conversations with the contractor. You will be billed only for services provided on a time and material basis. Because our services are directly controlled by the schedule and performance of others, the actual cost may vary from our estimate. Invoices for our services will be based on the actual number of hours provided for the project and the units tested. It is difficult to project all of the services and the quantity of services that may be required for any project. If services are required that are not discussed above, we will provide them at the rates shown in the attached table or, if not shown, at our current Schedule of Charges. We will invoice you on a monthly basis. General Remarks We will be happy to meet with you to discuss our proposed scope of services further and clarify the various scope components. We appreciate the opportunity to present this proposal to you. After reviewing this proposal, please sign and return one copy to our office as notification of acceptance and authorization to proceed. If anything in this proposal is not consistent with your requirements, please let us know immediately. Braun Intertec will not release any written reports until we have received a signed agreement. Also, ordering services from Braun Intertec constitutes acceptance of the terms of this proposal (including the attached General Conditions). The proposed fee is based on the scope of services described and the assumption that our services will be authorized within 30 days and that others will not delay us beyond our proposed schedule. Hutchinson Utilities Commission ProposalQTB085187 September 5, 2018 Page 6 We include the Braun Intertec General Conditions, which provide additional terms and are a part of our agreement. To have questions answered or schedule a time to meet and discuss our approach to this project further, please contact Richard Fritz at 651.487.3245 (rfritz@braunintertec.com) or Dan Martin at 952.995.2227 (dmartin@braunintertec.com). Sincerely, BRAUN INTERTEC CORPORATION Richard J. Fritz, PE Project Engineer Daniel E. Martin Principal — Senior Project Manager Attachments: Cost Estimate Table General Conditions — CMT (1/1/18) The proposal is accepted. We will reimburse you in accordance with this agreement, and you are authorized to proceed: Authorizer's Firm Authorizer's Signature Authorizer's Name (please print or type) Authorizer's Title Date BRAUN Project Proposal INTERTEC QTB085187 HUC Plant 1 Units 6 & 7 Installation =,!,ci-eYou Build 0. Client: Work Site Address: Service Description: Hutchinson Utilities Commission 44 4th Avenue NE Construction Materials Testing Randy Blake Hutchinson, MN 55350 225 Michigan St SE Hutchinson, MN 55350 (320)234-0551 Description Quantity Units Unit Price Extension Activity 1.1 Cast -in -Place Foundations Observations & Testing (Drilled Shafts/Auger-Cast Piles) $9,300.00 240 Observations, Piles & Piers 100.00 Hour 88.00 $8,800.00 Work Activity Detail Qty Units Hrs/Unit Extension Drilled Shafts Observations 10.00 Trips 10.00 100.00 1861 CMT Trip Charge 10.00 Each 50.00 $500.00 Activity 1.2 Deep Foundations Summary Report $1,596.00 126 Project Engineer 6.00 Hour 158.00 $948.00 128 Senior Engineer 2.00 Hour 168.00 $336.00 238 Project Assistant 4.00 Hour 78.00 $312.00 Phase 1 Total: '$10,896,00 Activity 2.1 Soil Observations and Testing $1,870.00 206 Excavation Observations 4.00 Hour 88.00 $352.00 Work Activity Detail Qty Units Hrs/Unit Extension Foundation Excavations 1.00 Trips 4.00 4.00 128 Senior Engineer 1.00 Hour 168.00 $168.00 1861 CMT Trip Charge 3.00 Each 50.00 $150.00 207 Compaction Testing - Nuclear 12.00 Hour 78.00 $936.00 Work Activity Detail Qty Units Hrs/Unit Extension Utility Backfill 3.00 Trips 4.00 12.00 1.308 Nuclear moisture -density meter charge, per hour 12.00 Each 22.00 $264.00 Activity 2.2 Concrete Observations and Testing $9,432.00 260 Concrete Observations 25.00 Hour 88.00 $2,200.00 Work Activity Detail Qty Units Hrs/Unit Extension Post -Installed Anchor Observations 4.00 Trips 3.00 12.00 Grade Beams 1.00 Trips 1.00 1.00 Drilled Piers 10.00 Trips 1.00 10.00 Structural Slabs 2.00 Trips 1.00 2.00 261 Concrete Testing 39.00 Hour 78.00 $3,042.00 Work Activity Detail Qty Units Hrs/Unit Extension Grade Beams 1.00 Trips 3.00 3.00 Drilled Piers 10.00 Trips 3.00 30.00 Structural Slabs 2.00 Trips 3.00 6.00 1364 Compressive strength of concrete cylinders (ASTM C 39), per 65.00 Each 28.00 $1,820.00 specimen Work Activity Detail Qty Units Hrs/Unit Extension Grade Beams 1.00 Set 5.00 5.00 Drilled Piers 10.00 Set 5.00 50.00 Structural Slabs 2.00 Set 5.00 10.00 09/05/2018 03:34 PM Page 1 of 2 BRAUN Project Proposal INTERTEC QTB085187 HUC Plant 1 Units 6 & 7 Installation =,!,ci—eYou Build 0. 2.78 Concrete Cylinder Pick up 15.00 Hour 78.00 $1,170.00 Work Activity Detail Qty Units Hrs/Unit Extension Cylinder Pickup 6.00 Trips 2.50 15.00 1861 CMT Trip Charge 24.00 Each 50.00 $1,200.00 Activity 2.3 Structural Steel and Fireproofing Observations and Testing $2,629.00 605 ICC Structural Steel Technician 23.00 Hour 98.00 $2,254.00 Work Activity Detail Qty Units Hrs/Unit Extension Welding, Framing, Bolting 5.00 Trips 4.00 20.00 NDE Final Report 1.00 Each 3.00 3.00 1664 NDE Trip charge 5.00 Each 75.00 $375.00 Activity 2.4 Project Management, Engineering Review, Oversight $3,192.00 2318 Project Assistant 8.00 Hour 78.00 $624.00 126 Project Engineer 12.00 Hour 158.00 $1,896.00 128 Senior Engineer 4.00 Hour 168.00 $672.00 Phase 2 Total. $17,123.00^, Proposal Total: 1 $28,019.00 09/05/2018 03:34 PM Page 2 of 2 General Conditions Construction Material Testing and Special Inspections Section 1: Agreement 1.1 Our agreement with you consists of these General Conditions and the accompanying written proposal or authorization ("Agreement'). This Agreement is the entire agreement between you and us. It supersedes prior agreements. It may be modified only in a writing signed by us, making specific reference to the provision modified. 1.2 The words "you," "we," "us," and "our" include officers, employees, and subcontractors. 1.3 In the event you use a purchase order or other documentation to authorize our scope of work ("Services"), any conflicting or additional terms are not part of this Agreement. Directing us to start work prior to execution of this Agreement constitutes your acceptance. If, however, mutually acceptable terms cannot be established, we have the right to terminate this Agreement without liability to you or others, and you will compensate us for fees earned and expenses incurred up to the time of termination. Section 2: Our Responsibilities 2.1 We will provide Services specifically described in this Agreement. You agree that we are not responsible for services that are not expressly included in this Agreement. Unless otherwise agreed in writing, our findings, opinions, and recommendations will be provided to you in writing. You agree not to rely on oral findings, opinions, or recommendations without our written approval. 2.2 In performing our professional services, we will use that degree of care and skill ordinarily exercised under similar circumstances by reputable members of our profession practicing in the same locality. If you direct us to deviate from our recommended procedures, you agree to hold us harmless from claims, damages, and expenses arising out of your direction. If during the one year period following completion of Services it is determined that the above standards have not been met and you have promptly notified us in writing of such failure, we will perform, at our cost, such corrective services as may be necessary, within the original scope in this Agreement, to remedy such deficiency. Remedies set forth in this section constitute your sole and exclusive recourse with respect to the performance or quality of Services. 2.3 We will reference our field observations and sampling to available reference points, but we will not survey, set, or check the accuracy of those points unless we accept that duty in writing. Locations of field observations or sampling described in our report or shown on our sketches are based on information provided by others or estimates made by our personnel. You agree that such dimensions, depths, or elevations are approximations unless specifically stated otherwise in the report. You accept the inherent risk that samples or observations may not be representative of things not sampled or seen and further that site conditions may vary over distance or change over time. 2.4 Our duties do not include supervising or directing your representatives or contractors or commenting on, overseeing, or providing the means and methods of their services unless expressly set forth in this Agreement. We will not be responsible for the failure of your contractors, and the providing of Services will not relieve others of their responsibilities to you or to others. 2.5 We will provide a health and safety program for our employees, but we will not be responsible for contractor, owner, project, or site health or safety. 2.6 You will provide, at no cost to us, appropriate site safety measures as to work areas to be observed or inspected by us. Our employees are authorized by you to refuse to work under conditions that may be unsafe. 2.7 Unless a fixed fee is indicated, our price is an estimate of our project costs and expenses based on information available to us and our experience and knowledge. Such estimates are an exercise of our professional judgment and are not guaranteed or warranted. Actual costs may vary. You should allow a contingency in addition to estimated costs. Section 3: Your Responsibilities 3.1 You will provide us with prior environmental, geotechnical and other reports, specifications, plans, and information to which you have access about the site. You agree to provide us with all plans, changes in plans, and new information as to site conditions until we have completed Services. 3.2 You will provide access to the site. In the performance of Services some site damage is normal even when due care is exercised. We will use reasonable care to minimize damage to the site. We have not included the cost of restoration of damage in the estimated charges. 3.3 If we notify you that radiographic or gamma ray equipment or other nuclear testing or measuring device will be used, you will be responsible for the cooperation of your employees and your contractors in observing all radiation safety standards. 3.4 You will notify us of any knowledge or suspicion of the presence of hazardous or dangerous materials present on any work site. If we observe or suspect the presence of contaminants not anticipated in this Agreement, we may terminate Services without liability to you or to others, and you will compensate us for fees earned and expenses incurred up to the time of termination. 3.5 The time our field personnel spend on the job site depends upon the scheduling of the work we are observing or testing. You agree that any changes in scheduling may result in additional costs and agree to pay for those services at the rates listed in our cost estimate. 3.6 You agree to include us as an indemnified party in your contracts, if any, for work by others on the project, protecting us to the same degree as you are protected. You agree to list us as an Additional Insured under your liability insurance policies and to require subrogation be waived against us and that we will be added as an Additional Insured on all policies of insurance, including any policies required of your contractors or subcontractors, covering any construction or development activities to be performed on the project site. Section 4: Reports and Records 4.1 Unless you request otherwise, we will provide our report(s) in an electronic format. 4.2 Our reports, notes, calculations, and other documents and our computer software and data are instruments of our service to you, and they remain our property. We hereby grant you a license to use the reports and related information we provide only for the related project and for the purposes disclosed to us. You may not transfer our reports to others or use them for a purpose for which they were not prepared without our written approval. You agree to indemnify, defend, and hold us harmless from claims, damages, losses, and expenses, including attorney fees, arising out of such a transfer or use. 4.3 If you do not pay for Services in full as agreed, we may retain work not yet delivered to you and you agree to return to us all of our work that is in your possession or under your control. 4.4 Electronic data, reports, photographs, samples, and other materials provided by you or others may be discarded or returned to you, at our discretion, unless within 15 days of the report date you give us written direction to store or transfer the materials at your expense. Section 5: Compensation 5.1 You will pay for Services as stated in this Agreement. If such payment references our Schedule of Charges, the invoicing will be based upon the most current schedule. An estimated amount is not a firm figure. You agree to pay all sales taxes and other taxes based on your payment of our compensation. Our performance is subject to credit approval and payment of any specified retainer. 5.2 You will notify us of billing disputes within 15 days. You will pay undisputed portions of invoices upon receipt. You agree to pay interest on unpaid balances beginning 30 days after invoice dates at the rate of 1.5% per month, or at the maximum rate allowed by law. 5.3 If you direct us to invoice a third party, we may do so, but you agree to be responsible for our compensation unless the third party is GC-CMT Page 1 of 2 creditworthy (in our sole opinion) and provides written acceptance of all terms oft his Agreement 5.4 Your obligation to pay for Services under this Agreement is not contingent on your ability to obtain financing, governmental or regulatory agency approval, permits, final adjudication of any lawsuit, your successful completion of any project, receipt of payment from a third party, or any other event. No retainage will be withheld. 5.5 If you do not pay us in accordance with this Agreement, you agree to reimburse all costs and expenses for collection of the moneys invoiced, including but not limited to attorney fees and staff time. 5.6 You agree to compensate us in accordance with our Schedule of Charges ifwe are asked or required to respond to legal process arising out of a proceeding related to the project and as to which we are not a party. 5.7 If we are delayed by factors beyond our control, or if project conditions or the scope or amount of work changes, or if changed labor conditions result in increased costs, decreased efficiency, or delays, or if the standards or methods change, we will give you timely notice, the schedule will be extended for each day of delay, and we will be compensated for costs and expenses incurred in accordance with our Schedule of Charges. 5.8 If you fail to pay us in accordance with this Agreement, we may consider the default a total breach of this Agreement and, at our option, terminate our duties without liability to you or to others, and you will compensate us for fees earned and expenses incurred up to the time of termination. 5.9 In consideration of our providing insurance to cover claims made by you, you hereby waive any right to offset fees otherwise due us. Section 6: Disputes, Damage, and Risk Allocation 6.1 Each of us will exercise good faith efforts to resolve disputes without litigation. Such efforts will include, but not be limited to, a meeting(s) attended by each party's representative(s) empowered to resolve the dispute. Before either of us commences an action against the other, disputes (except collections) will be submitted to mediation. 6.2 Notwithstanding anything to the contrary in this Agreement, neither party hereto shall be responsible or held liable to the other for punitive, indirect, incidental, or consequential damages, or liability for loss of use, loss of business opportunity, loss of profit or revenue, loss of product or output, or business interruption. 6.3 You and we agree that any action in relation to an alleged breach of our standard of care or this Agreement shall be commenced within one year of the date of the breach or of the date of substantial completion of Services, whichever is earlier, without regard to the date the breach is discovered. Any action not brought within that one year time period shall be barred, without regard to any other limitations period set forth by law or statute. We will not be liable unless you have notified us within 30 days of the date of such breach and unless you have given us an opportunity to investigate and to recommend ways of mitigating damages. You agree not to make a claim against us unless you have provided us at least 30 days prior to the institution of any legal proceeding against us with a written certificate executed by an appropriately licensed professional specifying and certifying each and every act or omission that you contend constitutes a violation of the standard of care governing our professional services. Should you fail to meet the conditions above, you agree to fully release us from any liability for such allegation. 6.4 For you to obtain the benefit of a fee which includes a reasonable allowance for risks, you agree that our aggregate liability for all claims will not exceed the fee paid for Services or $50,000, whichever is greater. If you are unwilling to accept this allocation of risk, we will increase our aggregate liability to $100,000 provided that, within 10 days of the date of this Agreement, you provide payment in an amount that will increase our fees by 10116, but not less than $500, to compensate us for the greater risk undertaken. This increased fee is not the purchase of insurance. 6.5 You agree to indemnify us from all liability to others in excess of the risk allocation stated herein and to insure this obligation. In addition, all indemnities and limitations of liability set forth in this Agreement apply however the same may arise, whether in contract, tort, statute, equity or other theory of law, including, but not limited to, the breach of any legal duty or the fault, negligence, or strict liability of either party. 6.6 This Agreement shall be governed, construed, and enforced in accordance with the laws of the state in which our servicing office is located, without regard to its conflict of laws rules. The laws of the state of our servicing office will govern all disputes, and all claims shall be heard in the state or federal courts for that state. Each of us waives trial byjury. 6.7 No officer or employee acting within the scope of employment shall have individual liability for his or her acts or omissions, and you agree not to make a claim against individual officers or employees. Section 7: General Indemnification 7.1 We will indemnify and hold you harmless from and against demands, damages, and expenses of others to the comparative extent they are caused by our negligent acts or omissions or those negligent acts or omissions of persons for whom we are legally responsible. You will indemnify and hold us harmless from and against demands, damages, and expenses of others to the comparative extent they are caused by your negligent acts or omissions or those negligent acts or omissions of persons for whom you are legally responsible. 7.2 To the extent it may be necessary to indemnify either of us under Section 7.1, you and we expressly waive, in favor of the other only, any immunity or exemption from liability that exists under any worker compensation law. Section 8: Miscellaneous Provisions 8.1 We will provide a certificate of insurance to you upon request. Any claim as an Additional Insured shall be limited to losses caused by our negligence. 8.2 You and we, for ourselves and our insurers, waive all claims and rights of subrogation for losses arising out of causes of loss covered by our respective insurance policies. 8.3 Neither of us will assign or transfer any interest, any claim, any cause of action, or any right against the other. Neither of us will assign or otherwise transfer or encumber any proceeds or expected proceeds or compensation from the project or project claims to any third person, whether directly or as collateral or otherwise. 8.4 This Agreement may be terminated early only in writing. You will compensate us for fees earned for performance completed and expenses incurred up to the time of termination. 8.5 If any provision of this Agreement is held invalid or unenforceable, then such provision will be modified to reflect the parties' intention. All remaining provisions of this Agreement shall remain in full force and effect. 8.6 No waiver of any right or privilege of either party will occur upon such party's failure to insist on performance of any term, condition, or instruction, or failure to exercise any right or privilege or its waiver of any breach. GC-CMT Revised 1/1/2018 Page 2 of 2 �•,pyQ� Special Structural Testing and Inspection Program Summary Schedule Project Name HUC Plant 1 Units 6&7 Installation Location 44 4th Ave. NE Hutchinson, MN 55350 Project No. 10059265 Permit No. (1) Technical (2) Description (3) Type of Inspector (4) Specific Report Frequency (5) Assigned Form (6) Section Article 33 63 29 1705.8 Drilling -Cast in place piers SI-T Continuous 33 63 29 1705.8 Rein£ -Cone. Quan./Placement SI-T Continuous 03 21 00 1705.3 Slab Reinf-Placement SI-T Periodic 03 21 00 1705.3 Cast in Place Anchorage SI-T Periodic 03 21 00 1705.3 Mix Dsgn/Sample/slump & air TA Continuous 03 21 00 1705.3 Post Install Anchorage SI-T Periodic 05 1200 1705.11 High Strength Bolting SI-T Periodic 05 1200 OIS105 1705.11 Welded -Moment Connections SI-T Periodic Note: This schedule shall be filled out and included in a Special Structural Testing and Inspection Program. (If not otherwise specified, assumed program will be "Guidelines for Special Inspection & Testing" as contained in the State Building Code and as modified by the state adopted IBC.) A complete specification -ready program can be downloaded directly by visiting CASE/MN at www.ceem.org (1) Permit No. to be provided by the Building Official (2) Referenced to the specific technical scope section in the program (3) Use descriptions per 2012 IBC Chapter 17, Section 1704 as adopted Minnesota State Building Code. (4) Special Inspector — Technical (SIT); Special Inspector — Structural (SIS) (5) Weekly, monthly, per test/inspection, per floor, etc. (6) Name of Firm contracted to perform services ACKNOWLEDGEMENTS (Each appropriate representative shall sign below) Owner: Firm: Hutchinson Utilities Commission Date: Contractor: Firm: Date: Architect: Firm: HDR Engineering, Inc Date: SER: Firm: HDR Engineering, Inc. Date: SI-S: Firm: Date: TA: Firm: Date: F: Firm: Date: If requested by engineer/architect of record or building official, the individual names of all prospective special inspectors and the work they intend to observe shall be identified as an attachment. Legend: SER = Structural Engineer of Record SI-T = Special Inspector — Technical TA = Testing Agency SI-S = Special Inspector — Structural F = Fabricator Accepted for the building Department By Date: HUTCHINSON UTILITIES COMMISSION�� Board Action Form 'Ylkll'M1'k Agenda Item: Approve Requisition No. 007717 for 2018 Chevrolet Silverado Presenter: Dave Hunstad Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: In compliance with the 2018 Fleet Management Program the Natural Gas Division is to replace vehicle No. 433, a 2006 Chevrolet 1500, 4WD w/utility body. The replacement vehicle that is being recommended by Hutchinson Utilities Commission is a 2018 Chevrolet Silverado 3500HD, 4WD Double Cab. The existing utility body in use on vehicle No. 433 will be installed on the new vehicle being purchased. This vehicle was originally ordered on the State Bid, purchase order No. 007499. The purchase order was placed on March 29, 2018. The dealer has recently communicated with HUC that 2018's are no longer available, 2019 engines are currently not being built and once the engine build begins a limited number of vehicles will be produced. HUC wishes to cancel purchase order 007499 and place purchase order 007717 with Valley Sales of Hutchinson. The state bid total price was $32,913.95. The total price through Valley Sales of Hutchinson is $34,434.49 This is part of the Fleet Management Program. The estimated budget was $37K, which BOARD ACTION REQUESTED: Cancellation of purchase order 007499 and approval of purchase order 007717 Fiscal Impact: $34,434.49 Included in current budget: Yes Budget Change: PROJECT SECTION: Total Project Cost: $39,770.49 Remaining Cost:-3,770.49 HUTCHINSON UTILITIES emrommicsi01t Note: PURCHASE REQUISITION HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 VALLEY SALES OF HUTCHINSON INC 525 HIGHWAY 7 E PO BOX 697 HUTCHINSON, MN 55350 Description: Date Requisition No. 09/11/2018 007717 Required by: Requested by: JWebster Item Part No. Description oty Unit Due Date Unit Price Ext. Amount No. 2018 CHEVROLET 350OHD DOUBLE CAB 4X4 1 000-00000 TRUCK. VIN 1GC5KYCGOJZ298294. 1.00 EA 09/11/2018 $32,119.000 $32,119.00 MFG. PART: TAS, LICENSE & FEES - MFG. PART: 2 000-00000 1.00 EA 09/11/2018 $2,315.490 $2,315.49 Total 34,434.49 Date Printed: 09/20/2018 Requisitioned By: JWebster Page: 1/1