Humboldt Natural Gas Board Minutes

The Humboldt Natural Gas Board met in regular session on Thursday, September 8^th, 2005. The meeting was called to order by Chairman Jim Jarding at 7:13 p.m. Members present were Ritchy Griepp, Harvey Shumaker, Kira Schmeichel, and Lynn Froke.

The minutes of the August meeting were reviewed. A motion was made by Schmeichel and seconded by Froke to approve the minutes. The motion carried.

Rates paid for August usage was $8.1489 including transportation.

First of the month rate for September usage is $9.290 plus $0.8848 transportation.

Lock in rate for 12 months is $10.60 plus transportation, 18 months is $10.40 plus transportation and 24 months is $9.87 plus transportation.

The effects of the hurricane Katrina were discussed. After discussion and reviewing e-mails from Jeff McKinney from NorthWestern Energy, a motion was made by Froke and seconded by Griepp to table locking in gas until the next meeting. The motion carried.

The stick on calendars were discussed. They have been ordered from Goebel printing. The finance officer has not heard if they are completed yet. Goebel printing will be contacted. The color of the calendars was also discussed. The original colors were to be red with black lettering. The red back round only had white lettering as an option, so the calendars will be red with white lettering.

New service connections were discussed. The Humboldt Natural Gas Utility initially paid $430.00 toward a new house service hook ups, this excluded existing residences that did not hook up during the first two years that the system

was in existence. There have been existing houses in town that have showed interest in hooking up. The finance officer contacted MidAmerican Energy, Northwestern Energy, the City of Garretson, the City of Crooks and the City of Freeman to see what their policies were for new service hook ups and existing residences now requesting service hook up. MidAmerican Energy, Northwestern Energy, and the city of Crooks do not charge customers for new services. The City of Garretson pays $275.00 plus tax and the City of Freeman pays $250.00 towards new service installation. All service requests are honored in all locations, whether the service is brand new or an existing residence requesting service. After discussion, a motion was made by Schmeichel and seconded by Froke to continue to pay $430.00 toward new hookups including existing residences that currently do not have natural gas. The motion carried with Schmeichel, Froke, Griepp and Shumaker voting yes and Jarding opposing.

The meeting with MMUA on August 24^th was discussed. The finance officer attended the meeting with Troy Dahlin and Mike Willetts. MMUA provides the required Operator Qualification training to the Utility Manager, Finance Officers, and Fire Department. Items reviewed included first year progress, next years needs, regional training sessions, on-line training and cost for next year. The cost for 2006 will remain the same. For the Humboldt Gas Utility it will be $3300.00 to be paid quarterly.

Due to requirements of the Governmental Accounting Standards Board and GASB 34, all funds under the Town of Humboldt will now require that a budget be created for the year 2006. The finance officer submitted the proposed budget for the Natural Gas system for review. After review, discussion and a change made to professional services, the total proposed budget is $418,294.00. A motion was made by Griepp and seconded by Shumaker to recommend approval of the 2006 Natural Gas budget and submit the budget to the City Board for approval. The motion carried.

With no further business, a motion was made by Schmeichel and seconded by Griepp to adjourn the meeting at 7:50 p.m. The motion carried.

ATTEST: KRISTIE ELLIS

FINANCE OFFICER