08-28-2019 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, August 28, 2019
Call to order — 3:00 p.m.
President Don Martinez called the meeting to order. Members present: President Don
Martinez; Vice President Matt Cheney; Secretary Robert Wendorff; Commissioner Monty
Morrow; Commissioner Anthony Hanson; GM Jeremy Carter; Attorney Marc Sebora
Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Wendorff, second by Commissioner Morrow to approve
the Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
GM Carter presented the Financial Statements. Electric Division Purchase Power
was down relative to last year even though HUC purchased 9% more off the market
due to Unit 8 being down. Usage was up slightly but revenue was still down due to
a lower PCA. Overall tracking consistent. In the Natural Gas Division, Commercial
Class is up 98%; hospital accounted for the additional usage. Mr. Webster is
working with the hospital to see why there may be higher usage/peaks. Overall
tracking as expected. On the Investment Report, a CD that matured in August was
reinvested. In addition, a U.S. Treasury Bill came due August 15 and has been
reinvested.
After discussion, a motion by Commissioner Hanson, second by Commissioner
Cheney to approve the financial statements. Motion carried unanimously.
4. Open Forum
5. Communication
a. City Administrator — Matthew Jaunich — Absent
b. Divisions
i. Dan Lang, Engineering Services Manager — Absent
ii. Dave Hunstad, Electric Transmission/Distribution Manager —
1 . Finishing up conductor project
2. Working on South Grade Road project
iii. Randy Blake, Production Manager —
1. Interpol Laboratories is on site working on emission testing. Unit 7 is
completed and Unit 6 should be completed today.
2. Caterpillar will be starting 150 hour run on Units 6 & 7 in a couple of
weeks.
3. New employee to start Friday
iv. John Webster, Natural Gas Division Manager- Nothing to report
v. Jared Martig, Financial Manager- Absent
c. Legal — Marc Sebora — Nothing to Report
d. Human Resources - Brenda Ewing — Absent
e. General Manager — Jeremy Carter
i. Strategic Planning meeting at 9am tomorrow at SWIF
ii. Had a meeting last week with a customer to talk about different
Interconnection Process tracks
iii. Legislative topics to be talked about tomorrow
6. Policies
a. Review Policies
i. Hutchinson Utilities Commission
ii. Establishing a New Electric/Natural Gas Account
iii. Deposit Requirement — Residential
iv. Deposit Requirement — Commercial/Industrial
v. Terminating Electric/Natural Gas Service by Customer
vi. Definition of Your Bill
vii. Errors in Billing
viii. Payment of Your Bill
ix. Automatic Bill Payment Plan
x. Budget Payment Plan
A. Explanation of Billing Procedure
xii. Minnesota Cold Weather Rule
No changes recommended at this time.
b. Approve Changes
No changes made to the policies under review.
7. Unfinished Business
8. New Business
a. Declare an Open Meeting for HUC Open House being held on Tuesday,
October 8 from 4:OOp.m. to 7:OOp.m.
GM Carter asked to set the meeting.
A motion by Commissioner Morrow, second by Commissioner Hanson to Declare
an Open Meeting for HUC Open House being held on Tuesday, October 8 from
4:OOp.m. to 7:OOp.m. Motion carried unanimously.
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b. Authorize Retiring Engine Unit #8 from HUC's Fleet
GM Carter presented continuation item of Engine Unit #8 from the Special
meeting that was held Tuesday, August 20. Options discussed for unit 8 were; 1)
Repair the unit to keep it serviceable in addition to noting the upcoming 5-year
CIP cost, 2) Retire the unit, or 3) look for a used engine comparable to unit 8.
After careful consideration of HUC operating business model, the MISO markets
future forecast climate, the addition of new units 6 & 7, and the continued current
fleet of HUC's other engines staff recommends retiring the unit. GM Carter
proposes the Commission Board to take formal action on this today.
A motion by Commissioner Cheney, second by Commissioner Hanson to Authorize
Retiring Engine Unit #8 from HUC's Fleet. Motion carried unanimously.
9. Adjourn
There being no further business, a motion by Commissioner Morrow, second by
Commissioner Wendorff to adjourn the meeting at 3:14p.m. Motion carried
unanimously.
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