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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 khi i�4 a 111221 W t1WF=IA1--j 101 A I IMAM V It UIR11r, 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