01-13-2021 HUCM Special Meeting�MINUTES
Special Meeting — Hutchinson Utilities Commissi
Wednesday, January 13i, 2021 1
Call to order — 7:00 a.m.
President Martinez called the meeting to order. Members present: President Dion
Martinez, Vice President Maft Cheney; Secretary Robert Wendoirff; Commissioner Monty
Morrow; Commissioner Anthony Hanson; ISM Jeremy Carter; Attorney Marc Sebora;
Others present: Dave Hunstaid, Angie Radke
The purpose of the special mieeting is to discuss, and review the Solar Array Bid
Proposals.
GM Carter recognized and thanked the Commission, for meeting this morning. ISM Cartd!5"
on! the Solar Array Bid materials that were received. Bids were received from 8, differe
companies, of the 8 companies,, 3 companies provided 2 different proposals, and
companies provided 4 different proposals. Overall, 17 proposals were received. The
was one unresponsive bidder; no bid bond was received. I
GM Carter reviewed the tabulation sheet listing all the different proposals received., Th'..
tabulation sheet breaks out the system size, bid amount�, estimated annual output kwh,
dollar/watt installed, system loss and materials used. In general, all bids received are
using similar types of material. Some of the panelsi being used may have miolre-
degradation than others, but all are fairly similar projects with similar output. All small and
large array proposals received do meet the miin,imu;m bid specs of 1,100,000 kWh/AC
annually.
Commissioner Hanson inquired about what Rochester has, done. GM Carter state,10
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Rochester does have smaller scale solar in addition to a purchase power structure!! b
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from a municipal direct ownership of an array no other municipal in this area has this ty
of scale. Marshal, and Sioux Falls are also working on solar arrays In conjunction,
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Commission on the size and then it needs to be determined what to do with thie excess
power.
Commissioner Hanson asked for clarification on if the community is askinig/wanting solar,
Mr. Huinst�ad stated not for additional cost�, however somie homeowners are looking into
solar to receive tax credits. Commissioner Hanson inquired about the Ziegler small array
bid; If HUC does go with the smaller array, can HUC go back and add more panels, if so
what will be the additional cost and does, it have to be the same panels that were used in
the originail purchase. Mr. Hunstaid stated as, fair as cost, solaould hit a plateau
at some time, when that will be is unknown, Any of the systems HUC chooses should
accommodate adding on in, the future, but this wiill be confirmed after the meeting,.
President Martinez inquiired about reliability on cloudy days, GM Carter stated that the
history of weather patterns for the specific location. However, every year wiill provide a
variation in overall output based on the weather.
The Commission looked to Mr. Sebora on thoughts about the Solar project,
Mr. Sebora stated if HUC would accept the small array project, adding on at a later date
would give HUC negotiating power, this would not be something that would have to go
out for bid.
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Discussions were held on the Zeigler smaller array project. It has the lowest project ca"I
and is the most competitive project basedi on cost/li This array configuration als
does not encroach on the N�atural Gas easement area and has plenty of space f providing future solar array additions if needed. The Ziegler array allso does not use thl-
quarry rock anchoring system.
GIVI Carter discussed the project cost, whiich comes in around 3.66 cents/kwhr. Staff
recommending initial consideration on providing a rate to, the EDA/City around 5.00
c:ents/kwhir. This would provide a savings on an annual basis to both the EDA and City
?.long with providinig dolilars to HUC for on-goingi operation, and maintenance over the
lifetime of the system. Thie 5.00! cents,/kwhr rate would provide a 38%-44% energy
cost savings based on the 2022 retail rates approved by the Commission that go into
effect 10/11/2021,
Discussions were held on moving forward with the smaller array project and how to fund
the project. GM Carter stated Commission can award the bid at the January Commission
Meeting, HUIC will 'thein need to receive the contract and review,, Once the reviewal
process is complete the Commission will need to approve the contract. This proce&�
could take two months. From there the project will be in the que for the deve,lopers to
start moving forward.
KA
Robert Wendorff
'A retary —
ATTEST:
Don Martinez, President,,'