06-24-2020 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, June 24, 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
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Wendorff, second by Commissioner Hanson to approve
the Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
GM Carter presented the Financial Statements. On the Electric Division, net loss
increased by $189,455 mostly due to decreased revenues. Usage was up in the
residential class but down in the commercial classes. About 35% of the decrease
in revenue can be attributed to no power cost adjustment in 2020 compared to the
PCA bringing in an additional $74K in 2019. On the Natural Gas Division, May 2020
financial numbers are very similar to May 2019 but HUC remains below 2019
consumption levels due to a much warmer first quarter in 2020.
Motion by Commissioner Cheney, second by Commissioner Morrow 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. Keeping up on projects and catching up on maintenance.
ii. EV Charger is ready to go. Looking at possibly a July install date but
dependent on street project.
iii. Unpaid collectable balance update. Energy Assistance agencies are being
used.
iv. Looking for approval of the Continuity of Operations Plan during the July
Commission meeting.
v. Would like to have a Solar Discussion with each of the Commissioners within
the next few weeks. Please look at schedules to arrange a time to meet.
vi. Uponor is interested in the Bright Energy Solutions program. Discussions
need to be held on if HUC should roll out the program to all customers.
vii. Reviewed Transformer Insurance.
Angie to send out email on schedules for the next week or two.
6. Policies
a. Review Policies
i. Section 6 of Exempt Handbook
ii. Section 6 of Non -Exempt Handbook
No changes recommended at this time.
b. Approve Changes
No changes recommended at this time.
7. Unfinished Business
a. None
8. New Business
a. Approve Requisition #8444 — Plant #2 Substation Circuit Breakers
GM presented Requisition #8444 - Plant #2 Substation Circuit Breakers. HUC is
looking to purchase three 13.8kV roll -in replacement circuit breakers made by
ABB for the Plant #2 Substation. The ABB circuit breakers will replace the
existing GE circuit breakers, which have been in service for 35-40 years and have
had mechanical problems in the recent past. HUC has periodically been
replacing breakers at the Plant #1 & Plant #2 substations with the same ABB
breakers due to the specific retrofit compatibility with the GE `Magne-Blast'
breaker and switchgear. WESCO is the regional distributor for ABB and the sole
supplier for these retrofit breakers as to why HUC has only received the one
quote. This breaker replacement was included in the 2020 CIP budget as part of
the Plant #2 Substation project.
2
Motion by Commissioner Cheney, second by Commissioner Hanson to Approve
Requisition #8444 — Plant #2 Substation Circuit Breakers. Motion carried
unanimously.
b. Approve 3M CIP Rebate for 2019 Qtr. 2-4 & 2020 Qtr. 1
GM Carter presented 3M CIP Rebates for 2019 Qtr. 2-4 & 2020 Qtr. 1, 3M
Rebate for 2019 Qtr 2-4 in the amount of $53,197.85 with a savings of 395.5KW
and 6,980 MCF. 3M Rebate for 2020 Qtr 1 in the amount of $26,586.68, with a
savings of 393.9KW and no MCF
Conversations were held on the timing of the 3M Rebates, comparison to past
quarters and the CIP Energy Saving Goals that are in place.
Motion by Commissioner Morrow, second by Commissioner Cheney to Approve 3M
CIP Rebate for 2019 Qtr. 2-4 & 2020 Qtr. 1. Motion carried unanimously.
c. 2019 Review of CIP
GM Carter reviewed 2019 CIP Review. The State of Minnesota added a goal of
achieving an annual energy savings of 1.5% of retail sales of electricity and gas
through conservation and energy efficiency programs beginning in 2010 and
continuing each year going forward.
d. Approve Awarding the Bid — 25/46.7 MVA Transformer
GM Carter presented Awarding the 25/46.7 MVA Transformer Bid. CE Power &
Staff are recommending awarding the bid to Virginia Transformer based on the
review of the bid proposals. The replacement transformer was not part of the
approved 5-year CIP budget, but was identified as a separate project to be
completed over the next two years. Staff estimates the transformer replacement
costs at $850,000. The actual bid amount before, losses are factored in or
discounts is $786,606.
Discussions were held on the familiarity of the company, quality of products and
loss load and dates of a possible special meeting if needed.
Motion by Commissioner Hanson, second by Commissioner Wendorff to Approve
Awarding the Bid — 25/46.7 MVA Transformer. Motion carried unanimously.
e. Approve Awarding the Bid — Grounding Transformer
3
GM Carter presented Awarding the Grounding Transformer Bid. CE Power & Staff
are recommending awarding the bid to Virginia Transformer based on the review of
the three bid proposals that were received. The replacement transformer was not
part of the approved 5-year CIP budget, but was identified as a separate project to
be completed over the next two years. The actual bid amount before losses are
factored in or discounts is $265,750.
Commissioner Manson inquired if there are any potential legal issues on n 19
honoring the bid to Pennsylvania Trans with being the lower bid, reason bein.R
Pennsylvania Trans would only honor if large bid was accepted as well. Mr. Sebog
q-tated there are no legal issues. M
GM Carter reviewed HUC's Preparedness Plan that is based on Gov. Tim Wal
executive Order 20-74. All employers need to have a plan to combat the spre
of COVID-19. If approved by the Board, Staff will distribute to employees and
post. I
Motion by Commissioner Hanson, second by Commissioner Cheney to Appro".'"I
Adopting Preparedness Plan. Motion carried unanimously.
Adjourn
There being no further business, a motion by Commissioner Cheney, second by
Commissioner Wendorff to adjourn the meeting at 3:50p.m. Motion carried
ATTEST
Don Martinez, Presidek-
4