06-23-2021 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, June 23, 2021
Call to order — 3:00 p.m.
President Matt Cheney called the meeting to order. Members present: President Matt
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I . Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes,
b. Ratify Payment of Bills
Motion by Commissioner Martinez, second by Commissioner Wendorff to approve
the Consent Agenda, Motion carried, unanimously.
GM Carter presented the Financial Statements. Combined Divisions outstanding
receivables are up from last yearone contributing factor to this is switching to a new
credit card processor and customers not switching over payments right away.
Electric Division usage was up, for May with it being a warmer month. Total KWH
Sold up 3.,5% over last year. There was no Power Cost AdJustment for May 2021
HUC's market sales were higher which led to increased fuel cost�.
Natural Gas Division is fairly consistent. Rate stabilization is trendling up, curreM
balance is about $355K.
Commissioner Morrow inquired about the generation and if all the engines are ui�,
and running. GM Carter stated for the most part all are up and running, goiing
through some troubleshooting on oil issues for units 6 & 7 but Staff is working with
Caterpillar.
Motion by Commissioner Hanson, second by Commissioner Morroiw to approve the
financial statements,. Motion carried unanimously.
4. Open Forum
5. Communication
a. City Administrator — Matthew Jauni:lch —
i, Council awarded bids for new police station, work to start end of
July/Aug.
iL Apartments and town homes are all filling up. New Home construction
is down due to supplies
iiL M� ainstreet is starting to see new businesses
bi. Divisions
i. Dan L,ang, Engineering Services Manager —
1 . Capacitor Bank update - completed
Dave Hunstad, Electric Transmission/Distribution Manager —
1 Solar Project Update — project is moving faster than planned;
fence is being started
2. Community solar roof top projects are going up
3. Recoductor project update on south part of town,
4. Plant 2 sub uipdate - �ransformers are installed, working on
getting feeders back up looking at late June/early July. Relays
and controls need to be completed to get feeders back up looking
at late june/ea,rly July,, Energizing should be completed in late
August ' Randy Blake, Production Manager —
1 . Working in conjunction! with Dans group
2. Ulniit 7 update — Discussed gas composition related to oil issues
along with boosting the compression rati�oi. When compression
was boosted it changed the characteristics of the engine
internally and dynamically, Caterpiilllar promised to redo the
engines, which means 40 new pistonis, 40, new liners and 40 new
sets of rings at no cost to HUIC, Zie!gller will be here to start the
work in Oct. The 1 000hrs break in period will than start over,
3. Fi'lnishing up Capital projects,
4. Retiring at end of July — Commission thanked Randy for all the
years of service.
John Webster, Natural Gas Division Director — Absent
v. Ja;red Martig, Financial Manager- Absent
c. Human Resources - Brenda Ewing — Absent
BESHM
i. Compensation Study is moving forward
ii. Accountant interviews to start happening in next couple of weeks.
iii, Legislative Update —
1, Working on budget
2. Clean Energy for America Act
3, ERCOT conversations.
6. Policies
a. Review Poliiciies
L Section 6 of Exempt Handbook
Section 6 of Non -Exempt Handbook
7. Unfinished Business
a. Status of Governor's Salary Cap -
Mr. Sebora stated that there were no conversations on, this topic during the
Special Session. Commission will need to have conversations on, this, topic
regarding the GIVI's Compensation. Options are to have this topic on a future
agenda, discussions can be made on policy changes, have a 311J party contract
2
to adjust compensation, wait and see were salary cap lands but that is late for
the GM's review, or lastly do nothing. President Cheney looked to the
Commission for ideas. It was concluded that Mr. Cheney would speak with all
the Commissioners along with reaching out to Ms. Ewing.
Mr. Blake presented approval of requlisiti�on #8750- Plant I Forcler/Marty's
Roofing. The roof at Plant 1 is over 30 years old and needs to be replaced as
there are many leaks. Three quotes were received with the lowest bid being
Forcier/Marty's Roofing at $29,013.00. This is a 2021 capiital expenditure project
work order #12103, estimated budget was $40K.
GM Carter discussed the beginning steps of the Citizen Survey. A contract from
Polco was just received and sent to the Commissioners prior to the meeting. The
intenit was to have the Commission look at the pricing structure, the content itself
still needs to be reviewed by Staff and Mr. Sebora. Last year when a quote was,
received from NRC it came in just under $25K, which $25K was, budgeted. Since
than Piollco has now bought out NRC and created a different rate structure s,ystem
based on custoimizable surveys for the Energy Industry. These custornizable
surveys require a 2-year commitment structure, The first year it would cost HUC
open ended question and the subscription cost. The second year it would cost
HUC $19K; whiich is the subscription cost.
Conversations were held on the cost of the new pricing structure, if this is still the
right vendor to use and the timing of when this would be completed in relation to
the strategic planning meetinigi.
GM Carter will follow up with Polco on a few questions including pushing back the
second year along with looking for another company quote. Special meeting may
be needed for this, topic.
9. Adjouirn
There being no further business, a motion by Commissioner Wenidorff second by
Commissioner Hanson to adjourn the meeting at 3:59p,m, Motion carried
unanimously,,
E
Don Martinez, Secretary/,
ATTEST: 0 \J
Matt Cheney, President