04-29-2020 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, April 29, 2020
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
Commissioner Cheney declared conflict of interest in voting on agenda item 2b
Ratify Payment of Bills; Redline Systems is on this month's payment of bills. Mr.
Cheney will be abstaining.
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. First quarter of the year is trending
the same as 2019. Electric Division has increased with it being a bit warmer than
last year. Net loss decreased by $156,914 despite having consistent revenues. This
is due mostly to lower purchased power and a large drop in transmission. Usage
was up but revenue did not increase proportionately that same amount due to no
power cost adjustment added for the first time since May 2018. In the Natural Gas
Division, gas usage was down from the prior year due to a warmer March compared
to 2019. Net profit is down by $112,807 but continuing to trend fairly well. Continuing
to keep an eye on how the pandemic is affecting retail, commercial and residential.
Staff is tracking weekly loads, as of now loads are tracking down 1-3%. April
financials will show a better idea of the load classification breakout.
Discussions were held on what HUC and surrounding communities are experiencing
from customers.
Staff will begin to track and provide a monthly report to watch the trend of how the
pandemic is affecting HUC loads and receivables.
Motion by Commissioner Cheney, second by Commissioner Wendorff 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 —
Nothing to report
e. General Manager — Jeremy Carter
i. HUC received RP3 Recognition and Safety Recognition. President Martinez
recognized and thanked the Staff; this is a great reflection to HUC.
ii. Legislative Update
iii. Continuing to work on alternating half crew shifts. Will continue with this
schedule until May 29.
iv. Transformer bid update. May need to have a special meeting between now
and the May meeting to reject all bids, there were multiple bids that had
arithmetic errors and missing information.
v. Insurance claim recap
6. Policies
a. Review Policies
i. Section 4 of Exempt Handbook
ii. Section 4 of Non -Exempt Handbook
No changes recommended at this time.
b. Approve Changes
i. Compensation Plan — Exempt and Non Exempt Handbook
GM Carter noted descriptions/roles have been updated, along with mirroring the plan
that was approved by the Commission Board in 2019.
A motion by Commissioner Hanson, second by Commissioner Cheney to Approve
Policy changes. Motion carried unanimously.
7. Unfinished Business
a. None
8. New Business
a. Approve Requisition #8394 — Utility Service Body for 2020 Welding Vehicle
GM Carter presented Requisition #8394 — Utility Service Body for 2020 Welding
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Vehicle. In compliance with the 2020 Fleet Management Program, the Natural
Gas Division is to replace vehicle #357. The Commission in the January 2020
meeting approved the purchase of the cab and chassis.
A motion by Commissioner Morrow, second by Commissioner Hanson to Approve
Requisition #8394 — Utility Service Body for 2020 Welding Vehicle. Motion
carried unanimously.
b. Approve HTI/TDK Natural Gas Transportation and Commodity Purchase
Agreement
GM Carter presented HTI/TDK Natural Gas Transportation and Commodity
Purchase Agreement. Staff did not have the needed information in place when
the packet was completed last week. This agreement provides transportation and
commodity purchasing rights to HTI/TDK on Hutchinson Utilities' facilities for a
one-year term, keeping the terms similar to 3M.
A motion by Commissioner Wendorff, second by Commissioner Cheney to
Approve HTI/TDK Natural Gas Transportation and Commodity Purchase
Agreement. Motion carried unanimously.
vi. Adjourn
There being no further business, a motion by Commissioner Morrow, second by
Commissioner Hanson to adjourn the meeting at 3:42p.m. Motion carried
unanimously.
Robert Wendorff, Secr
ATTEST: G
Don Martinez, President
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