01-27-2021 HUCMMIN�UTES
•Aegular Meeting — Hutchinson Utilities Commission
Wednesday, January 27, 2021
Call to order — 3:00
President Don Martinez callled the meeting to order. Members present: President Don
Martinez-, Vice President Matt Cheney, Secretary Robert Wenidoirff; Commissioner
Anthony Hanson; GM Jeremy Carter-, Attorney Marc Sebora
Absent: Commissioner Monty Morrow
I Conflict of Interest
Commissioner Hanson declared', conflict of interest in voting on agenda item 2f -
Designate Depositories for Utility Funds, as he is an employee of Citizens Bank &
Trust. Commissioner Hanson will be abstaining from Agenda item 2f.
2. Commission Reorganization
President Martinez called for the annual Commission reorganization, Commission
will be combining items a, b and c.
A motion made by Commissioner Wendiorff, second by Commissioner Hanson
to elect Matt Cheney to the position of President, Anthony Hanson to the
position of Vice President and Don Martinez to the position of Secretary. Motion
unanimously carried.
fA motion made by Commissioner Wendorff, second by Commissioner Cheney
to designate Citizens, Bank & Trust, Wells Fargo Bank, Wells Fargo Advisors,
Home State Bank, Morgan Stanley and Cetera Investment Services as
depositories for utility funds. Motion unanimously carried. Commissioner
Hanson abstained.
3. Approve Consent Agen,
a. I
Approve Minutes
s b. Ratify Payment of Bill
ansoin, secw w w wI ssioner
Consent Agiendai. Motion carried unanimously.
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GM Carter reviewed the 202�Oi Load Duration Curve Contract Graph that was handed
out. Mr. Lang compares the percentage of baseload coo the overall load for
the year, which is done on a yearly basis, Conversations were held on the amount
of load that is locked up Into contracts.
Motion by Commissioner Cheney, second by Commissioner Wendorff to approve
the financial statements. Motion carried unan,imously.
5. Open Forum
6. Communication
a., City Administrator — Matthew J�aun,ich — Absent
b. Divisions
i. Dan Lang, Engineering Services Manager — Absent
iiDave Hunstad, Electric Transmissiobution Manager — Absent
Randy Blake, Production Manager — Absent
John Webster, Natural Gas Division Director — Absent
v. Jared g, Financial Manager-, Absent
c. Human Resources - Brenda Ewing — Absent
e, General Manager — Jeremy Carter
j. March is anticipated time frame for the Audit
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ii. Sent out Legislative updates
Iii. Sent out template on Citizen Survey; Commission please think about
framework and types of questions, Plan is to send out in Summer,
compile results and have complete by Strategic Planning meeting in the
Fall.
iv. MMUA Legislative Rally on February 10tI
v. APPA meeting coming up March 1 st and 2nd
Finishing up reviews on Staff
vii. Unit 6 has been fixed. A new OMD (Oil Mist Detection) system was
instal�leid 3 weeks ago. 'Unit 7 should be finished up today. However, a
pump seal in the water tower went bad'. Now Staff is waiting for the seal
to come in before running Unit 7. Once units have 1000 hours Staff will
sign off and warranty starts. Depreciation will start this year.
7. Policies
a,. Review Policies
I Section 1 opt Handbook
Section 1 of Non -Exempt Handbol
TWOT-IMOMIN1713-
9. New Business
GM Carter presented Requisition #8631 — 2021 Ram,35001 Cab and Chassis.
This, is a CIP item. Whena service person was added in the Natural Gas Divisiiior
a vehicle is now needed, This cab and chassis did; come in lower than what was
budgeted.
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Requisition #8631 — 20121 Ram 3500 Cab and Chassis., Motion carried
unanimously
GM Carter presented Requisition #8635 — Utility Service Body for 202111 Service
Vehicle. This is the 2nd half of the above truck.
1MY 05TI—on Cy —Commissioner eniey, secono UTCommissione GAL
Requisition #8635 — Utility Service Body for 20211 Service Vehicle. Motion carri
unanimously.
RI
GM Carter presented Requisition #8632 — RDO Veermeer Directional Drill. In
2014, HUC purchased a Vermeer Directional Drill along with a trailer, mixer and
water tank. This is H I main piece of equlipmenit for installing Electric and
Natural Gas services, averaging 17,000 boring feet per year. Staff has
determined the tra�iler, mixer', and water tank has operating Iffe and does not need
to be repIlaced at this time. ThereforeStaff is requesting to only replace the drill
itself along with drill rods and adapters, HUC will receive $53K in trade value for
I
the 20114 Vermeer Drill.
A motion by Commissioner Cheney, second by Commissioner Hanson, to,
Approve Requisition #8632 — RDO Veerimeer Directional Drill. Motion carneq
unanimously,
GM Carter presented Requisition #8636 — CEM Equipment. The operating permit
for Unit 1 gas turbine requires Staff to perform continuous emissions monitoringi.
The continuous emiissions monitoring systern (CEMS) currently has a data logger
to gather and store the emission information for reporting to EPA/MPCA. The
existing data logger is operated in conjunction with software from a company
called VIM'I. VIM has notified HUC the software will no longer be supported.
Besides the data logger, Data Acquisition Handling System (DAHS) is another
option that can; be used to accompliis,h data acquisition, Thiis type of system is,
used a,lmost exclusively in emission data collection systems in the Industry. Thiis
is a CIP item that was budgeted and did come in under budget.
11 I OW II�IJIIIIJII M IIIIIffl!711WIT!1IT some
e, Approve Requisition #8638- CE Power Plant 2 Transformer Pad December
Progress Billing.
A motion by Commissioner TTendorI second by Commissioner Cheney to
Approve Requisition #8638 - CE Power Plant 2 Transformer Pad December
Progress Billing. Motion carried unanimously.
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GM Carter presented the Interactive Photovoltaic System. GM Carter recapped
the conversations that were held at the january 13, 2021 special meeitinigi. At that
time discussions were held on the bid proposals, s,ize of array options and
cost/kwhir olf the various bid proposals. Based on those discussions, if the
Commission wouild o continue to move forward with a utility scale solar array,
Staff is recommending awarding the bid to Ziegler Power Systems for theiir
766KW CD solar array at a total installed cost of #976,967.00. Ziegler Power
Systems overall is the lowest project cost, is the most competitive project based
on cost/kwhr, does not fill the whole area but can be added to in the future and
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After discussions, a motion by Commissioner Cheney, second by Commissioner
Hanson to Approve Awarding the �Bid — Interactive Photovoltaic System to Ziegler
Power Systems. Motion carried unanimously.
catastrophic Tund trorn �w
the designation at any time.
A motion by Commissioner Hansonsecond by Commissioner Wendiorff to
Approve increasing the Catastrophic Reserve Fund to $1 Mi. Motion carried
unanimously.
Discussion was held on insurance; does Staff see more competition -carriers
coming in the future. Something for the Commission to think about is to hire an
engineering firm to do a risk assessment, an overal�l scope of the entire facility
and only insure a few items; which could reduce the premiums. Essenfially HUIC
would opic of'having a study/thought process to possibly s,elf-
insure should be put on a list for discussion in 2021.
h, Approve Amended Agreement with the City of Browntoin for Meter Readi
Services, I
GIVI Carter presented the Amended Agreement with the City of Browntoin for
Meter Reading Services. This is an amended agreement to now include reading
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the water meters.
i '11111 fill � 1 OTI C -TV
approve Amended Agiireement with the City of Brownton for Meter Reading
Services. Motion carried unanimously.
10. Adjourn
There being no further business, a motion by Commissioner Hanson, second by
Commissioner Cheney to adjourn the meeting at 3:58pm. Motion carried
unanimously.
ATTEST:
Matt Cheney, President
on
Don, Martinez, SecretarY�11'/