02-23-2022 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, February 23, 2022
Call to order — 3:00 p.m.
President Matt Cheney called the meeting to order. Members present: President Matt
Cheney; Vice President Anthony Hanson; Secretary Don Martinez; GM Jeremy Carter,
Attorney Marc Seb,ora
1. Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Martinez, second by Commissioner Hanson to: approve th'-w
Consent Agenda, Mofion carried uinanimouslIy.
3. Approve Financial Statements
Mr. Martig presented the Financial Statements. Statements are similar to last year.
Both Electric and Natural Gas Division, customer revenues increased but was offset
by the increase in expenses,, which were due to the colder weather.
GM Carter went back and reviewed the December 2021 HUC targets and made
adjustments to be more in line with the 2022 budget.
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looking at the current glide paths and considering any adjustments that will need to
be made.
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5. Communication
a. City Administrator — Matthew Jaunich —
L Nothing to Report
b. Divisions
i. Dan Lang, Engineering Services Manager — Nothing to report
iii. Dave Hunstad, Electric Transmission/Distribution Manager — Nothing
report
iii. Mike Gabriels,on, Production Manager —
1. Working with Evap Tech on Cooling Tower at Plant 1 to determine if any
structural repairs need to be done. Once information is received may
need to go out for public bid.
2. Will be working on pricing to retube auxiliary boiler at Plant 2
3. CAT has been here for last 2 days, testing on 6 & 7 engines. Engines
will need to run for 1000 and then test oil consumption.
iv. John Webster, Natural Gas Division Director — Absent
v. Jared Martig, Financial Manager - Nothing to report
c. Human Resources — Brenda Ewing/Angie Radke -
i. Nothing to Report
d. Legal — Marc Sebora —
i. Nothing to Report
e. General Manager — Jeremy Carter
i. May have some redistricting with the latest numbers coming out from the
State; which may create a change in the local representatives.
Commissioner Hanson inquired about the additional graphs that were included in
the financials. Mr. Lang reviewed the graphs along with speaking to the Load
Duration Curve and Base Load Contracts.
8. Policies
a. Review Policies
i. Section 2 of Exempt Handbook
ii. Section 2 of Non -Exempt Handbook
No changes recommended at this time.
b. Approve Changes
i. After Hours Reconnection Policy- Mr. Martig noted since Meter Staff is
working until 5pm this time adjustment will allow extra time for customers
to pay.
Motion by Commissioner Hanson, second by Commissioner Martinez to approve the
After Hours Reconnection Policy. Motion carried unanimously.
7. Unfinished Business
8. New Business
a. Review 2021 Annual Distributed Generation
Mr. Hunstad presented the 2021 Annual Distributed Generation Resources
Annual Report information. The report tracks the power generated from the solar
systems that are delivered to the customer, what is sold back to HUC, and what is
the net chargelcredit for the customer. Every year HUC is required by state law to
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present this report to HUC's governing board. Each year this needs to be
evie,wed. HUC has 12 systems total for 2021 . No applications for 20e
been received.
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Mr. Hunistad presented the Approval of Cogeneration and Small Power
Production Annual Tariff Fifing. Municipal Utilities annually shall file for review
and approval of a cogeneration and small power production tariff with the
governing bodad reviewed Scheduiles 1: For facilities of 40KW or
less and Schedule 4: for facilities 40KW — 1 OiOKW.
Motion by Commissioner Martinezsecond by Commissioner Hanson to Approve
C
iff ogeneration and Small Power Production Annual TariI Filing. Motion carried
unanimously.
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GM Carter provided a summary of the 3M"s Natural Gas Transportation and Daiily
Swing Supply Agreement. 3M's current agreement expires on March 1, 2022 at 9
A.M. This agreement provides transportation, rights to 3M on Hutchinson's facilities
from March 1, 20,22 at 9:00 A.M. through, March 1, 2023 at 9�00 A.M. This
agreement is identical to the 2021. All fees are in alignment with the rate
realignment structure proposed by the Commission for this customer. G,M Carter
noted based on Cost of Service Study that will be done later in the year, this may
change in the future.
earned unanimously.
Mr. Gabrielson presented the approval of Req# 009022 — Air Stack Emission
Testing Plant 1 & 2. Every 2-5 years HUC needs to perform testing on the
exhaust stacks at both plant 1 & 2 for the air permit. This year all the units a
d�ue in April. Total of Compliance Testing at Plant 1 and Compliance and PS-1
Testing at Plant 2 are $3i9,600.00.
A motion by Commissioner Martinez, second by Commissioner Hanson to
Approve Req# 009022 — Air Stack Emission Testing Plant 1 & 2. Motion carded
unanimously.
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e. Approve Req# 008997- Unit 1 LM6000 Fuel Nozzles
Mr. Gabrielson presented the approval of Req# 008997 — Unit 1 LM6000 Fuel
Nozzles. Every year 10 fuel nozzles are removed from Unit 1 and are sent for
inspection. Following the cleaning, inspection, and testing it is then determined
what repairs need to be completed. This year all 10 fuel nozzles need major
overhaul.
A motion by Commissioner Hanson, second by Commissioner Martinez Approve
Req# 008997 — Unit 1 LM6000 Fuel Nozzles. Motion carved unanimously.
f. Rescind Advertisement for Bid: In -Line Inspection of 12" Lateral Natural Gas
Pipeline
GM Carter presented the rescinding of Advertisement for Bid: In -Line Inspection
of 12" Lateral Natural Gas Pipeline. Originally Staff went out for quotes, however
the quotes suggested that Bids would be needed. Based on the 2 bids received
at the Feb 14 Bid Opening, both were well under the $175K and 1 of the bids did
not have all the required documentation. Knowing the cost of the project will be
under the $175K, Staff would like to go out for quotes for this project instead and
by doing so may receive additional interest in the project. May need to have
special meeting within the next two weeks to approve a quote.
A motion by Commissioner Martinez, second by Commissioner Hanson to
Rescind Advertisement for Bid: In -Line Inspection of 12" Lateral Natural Gas
Pipeline. Motion carried unanimously.
g. Approve Req# 008920 — City of Hutchinson LED Street Light Conversion
Mr. Hunstad presented Approval of Req# 008920 — City of Hutchinson LED Street
Light Conversion. During the 2021 Strategic Planning process Commissioners
and Staff agreed to fund materials and labor for the City of Hutchinson 8-year
LED Street Light Conversion Project. HUC will purchase and install an average
of 275 LED fixtures per year. Requisition #008920 is for the first year of LED
fixtures that are scheduled for delivery in March. This is looking to be a 5-6 Year
plan.
A motion by Commissioner Hanson, second by Commissioner Martinez to
Approve Req# 008920 — City of Hutchinson LED Street Light Conversion. Motion
carried unanimously.
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9. Adjourn
There being no further business, a motion by Commissioner Martinez, second by
Commissioner Hanson to adjourn the meeting at 3.2 p.m. Motion carried
unanimiouisly,
,N
Darn Martinez, Secretary
ATTEST;
Matt Cheney, President
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