05-29-2019 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commissior
Wednesday, May 29:, 2019
'Call to orde,r — 3:010 p.m.
President Don Martinez called the meeting to order, Members, present: President Don
Martinez; Vice President Matt Cheney-, Secretary Robert Wendorlf; Commissioner Monty
Morrow; Commissioner Anthony Hanson; GM Jeremy Carter
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2, Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Hanson, second by Commissioner Cheney to approve the
Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
GM Carter presented the financial statements. Electric Division Net Loss decreas,
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by $74,043 moistly due to a decrease in generation and purchased! power. KW
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sold for industrial saw a reduction in loads, which is due to 3M efficiency and H
ramping down. HUIC will continue to watch loads and if loads, continue to fall for 1
months HUC may re -class. Large General KWH increased by 9,600K due
Upionor.
Mr. Martig added Naturail Gas net income decreased by $87,862, which is mo
diue to lower customer revenue with decreased usage. Purchased Gas sj,
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decreased due to lower usage.
GM Carter reviewed the Investment Report. 'Two US treasury bills came dlue, th
money was reinvested into 9 new Municipal Bonds.
After discussiions, a motion, by Commissioner Morrow, second by Commissioner
Hanson to approve the financial statements. Motion carried unanimously.
5. Communication
a. City Administrator— Matthew Jauniich —
i. 5th, Ave construction will be starting June 7
ii. Council awarded bill for UponorTTDK road to start this summer
ifl. Rate schedule for water/sewer
iv. Patching pot holes
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ii. Dave Hunstad, Electric Transmission/Distribution Manager —
1 Had an outage last week by, Cash Wise. Will be finlishi!ng repair work
this week.
2. Working on 5th Ave project
3. Working on RP3 application
Randy Blake, Production Manager —
1 . Received Plant I air permit
2. Emissions testing results look good
3. Completed testing on cooling tower, however, there were leaks, Fag
Inc. me permanent repairs.
4. Caterpillar will be removing all the Conex box containers soon
5. Lube oil was received and instal ; led in both eng
6ines
. Quado e Electric is here this week pulling the last f the wires
7. Looking to start engines around June loth I
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v. John Webster, Natural Gas Division Manager-
1 . Repairing a two-inch steel line by the old KFC building that was hit
2. Working on 5 th Ave project
Working on receiving qotes from contractors for Prince of Pea
relocation. I
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e. GenieraIl Manager — Jeremy Carter
i. Continuing to work on Financial modeling
Working through Strategic Planning
Coordinating a 2nd Union sub -committee meeting
Legislative updates - No significant changes for municipal utilities
6Policies
a, Review Policies
Section 5 of Exempt Handbook
I Section 5 of Non -Exempt Handbook
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GM Carter presented approving the Bid! for Unit #8 Control System Replacement.
HLIC recently advertised for bids to replace, a, portion of the! genset con,trol system
due to obsolescence of replacement parts and support. Having bidding
requirementsHUC Staff would recommend awarding the Unit #8 Control System,
Replacement project to Petrotech, Inc. for $215,512.00, which, is within the 2019
budget of $305,000.
Mr. Webster presented the 2nd Amendment to Natural Gas Transportation
Agreement — TDK/HTL Mr. Webster noted that conversations have been held
with TDK/HT1 the last few months to assist in controlling the natural gas
commodity costs. The impact to HUC would be minimal and Mr. Webster would
work with TDK/HTI to procure and manage all natural gas contracts.
After discussion, a motion by Commissioner Cheney, second by, Commissioner
Morrow to Approve 2nd Amendment to Natural Gas Transportation Agreement —
TDK/HTI. Motion carried unanimously.
9. Adjourn
There being no further business, a motion by Commissioner Cheney,, second by
Commissioner Hanson to adjourn the meeting at 3:29p.m. Motion carried
unanimously.
Robert Wendorff, "ary
ian ATTEST:
Martinez, President
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