03-25-2020 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, March 25, 2020
Cal I to order — 3:00 p.m.
President Don Martinez called the meeting to order. Members present: President Don
Martinez; Vice President Matt Cheney; Commissioner Monty Morrow; Commissioner
Anthony Hanson; GM Jeremy Carter; Attorney Marc Sebora
Absent: Secretary Robert Wendorff
Conflict of Interest
None
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Hanson, second by Commissioner Morrow to approve the
Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
GM Carter presented the Financial Statements. Although usages are down, both
Electric and Natural Gas Divisions are trending well. Due to the weather and
pandemic, projects for the year have not started yet. 2020 Main Street project is still
scheduled to start on April 13.
Motion by Commissioner Cheney, second by Commissioner Hanson 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— Absent
iii. Randy Blake, Production Manager — Absent
iv. John Webster, Natural Gas Division Director — Absent
v. Jared Martig, Financial Manager- Absent
c. Human Resources - Brenda Ewing — Absent
d. Legal — Marc Sebora —
i. Nothing to report for legal
ii. City Council meeting last night passed an ordinance affirming Emergency
Declaration by Mayor Forcier related to COVID-19. Main components of
the declaration are 1) that it implements the City's Emergency Response
Plan 2) gives the City leeway on purchasing ability and bidding laws and 3)
provides the City Administrator additional authority to be flexible with
employee's schedules and hiring temporary workers. In summary, the
declaration is to make sure the City is prepared for if and when the virus
would affect the City of Hutchinson.
GM Carter spoke of HUC's pandemic response and the various levels. One
item to note is that the community will not be officially notified if there is a
case in the City due to HIPPA and privacy laws. Management will continue
to monitor the situation and make necessary precautionary steps and
adjustments to staff if and when needed. Will be preparing a response to
the Department of Commerce since HUC is considered an essential
service. The response will consist of how HUC is staying essential and
what steps are being used to keep the power on and that gas keeps flowing.
Staff will continue to monitor and will inform the commissioners on next
steps.
Mr. Sebora noted that depending on how the pandemic evolves, meeting
structures may need to change to teleconferencing or video meeting. A
priority is to make sure everyone stays safe.
e. General Manager — Jeremy Carter
i. Focus right now is the Pandemic response.
ii. Operations are going as normal, contingencies plans are in place to keep
everything moving forward.
6. Policies
a. Review Policies
i. Section 3 of Exempt Handbook
ii. Section 3 of Non -Exempt Handbook
No changes recommended at this time.
b. Approve Changes
No changes recommended at this time.
7. Unfinished Business
a. Change ---Follow up conversations on Possible City Charter Amendment to
change the eligibility requirements to serve as a Hutchinson Utilities
Commissioner
Mr. Sebora recapped discussions that were held in December and January on
increasing the pool of possible commissioner candidates to serve on the Utilities
Commission by allowing owners of businesses to potentially serve as
commissioners. Since that time, the question has arisen as to how many of the five
commissioners this new category of qualification should apply to. The belief of the
overall feeling from the commission from past discussions was that one
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commissioner would be able to serve with this new qualification but an acti.Fa�,,,
number was never discussed at either of the other meetings.
VA
that it was one.
President w be one member. Mr,
b, , will forward
L
summaryGM Carter provided a aTransportation and Daily
agreementSwing Supply Agreement, 3M's current a
transportationThis agreement provides
Meter charges have been changed
to follow the Cost of Service Study.
Discussions were held on how the agreementsl
Commissionin the with the rate study.
President Martinez inquired if there was a concern from a legal standpoint on the
2-month lag. Mr. Sebora assured the
OW111MMIN NI*,
Package,GM Carter presented approval of requisition #8348 — Sauer WP45L Air
Compressor l o: d that 2
enoughinstrument air compressors are not
compressor,add a third r
times on all units. This item was budgeted in the CIP.
A motion by Commissioner Hanson, CheneyApprove Requisition ' 3Package.
carried unanimously.
Approve
c. #2 Grounding
Transformer.
GM Carter presented approval of amending the Advertisement for Bid on Plant
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Grounding Transformer. With the current business operations and people
working from home, Staff would like to extend the bid submittal date an additional
3 weeks to April 21. Staff believes extending the advertisement for bid date is a
better alternative than not receiving or receiving very few bid responses while
businesses are working through the circumstances surrounding the COVID-19
Pandemic.
A motion by Commissioner Hanson second by Commissioner Morrow to Approve
Amending the Advertisement for Bid on Plant #2 Grounding Transformer. Motion
carried unanimously.
d. Approve Amending the Advertisement for Bid on Plant #2 25/46.7 MVA
Transformer
GM Carter presented approval of amending the advertisement for bid on Plant #2
25/46.7 MVA Transformer. As stated above with the Advertisement for Bid on
Plant#2 Grounding Transformer, Staff would also like to extend the Advertisement
for Bid on Plant #2 25/46.7 MVA Transformer.
President Martinez questioned if 3 weeks for both Advertisement for Bids is
sufficient. GM Carter expressed that Staff believes 3 weeks is sufficient. Staff is
anticipating a slower lead time of about 9-12 months due to product supply but
would like to get the process moving. Will continue to do preparations of the pads
and getting the site prepared. Most of the construction costs will not happen until
2021.
A motion by Commissioner Cheney second by Commissioner Hanson to Approve
Amending the Advertisement for Bid on Plant #2 25/46.7 MVA Transformer.
Motion carried unanimously.
GM Carter added that additional information was received back from the
insurance claim on the transformers and this will be reviewed with the brokers
and the League tomorrow as to what is being covered and what is not. Will keep
the Commissioners up to date on the conversations.
GM Carter also mentioned that there is some legislation coming out on the 3rd
federal stimulus bill which might be applicable to HUC. One of the provisions is
on debt collectors providing essential services, utilities cannot disconnect power
or charge late fees. Another provision is that utilities cannot collect on past due
balances for 120 days after the pandemic has ceased, meaning if the pandemic is
over in July, HUC has to wait 4 months to start collecting on unpaid past due
balances. Just something that Staff and Commission Board need to be aware of.
Staff may need to come to the Board to see how uncollectables may need to be
addressed.
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Commissioner Hanson stated when and if tracking of the numbers start and if
noticing a trend that needs to be addressed to please let the Board know.
GM Carter agreed.
Adjourn
There being no further business, a motion by Commissioner Morrow, second by
Commissioner Hanson to adjoum the meeting at 3:36p.m. Motion carried
unanimously.,
ATTEST:
on Martinez, PLresident
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Robert Wendorff, S f Lary