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03-30-2022 HUCMMINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, March 30, 2022 Call to order — 3001 p.m. President Matt Cheney called the meeting to order. Members present: President Matt & Schimiesing Audit F'irm Absent: Commissioner KathySilvernale 1. Conflict of Interest 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bill�s Motion by Commissioner Martinez, second by Commissioner Hanson to Approve the Consent Agenda, Motion carried unanimously. 3. Approve 2021 Financial Audit — Presentation by Justin McGraw Justin McGraw with Conway, Deuth & Schmiesing Audit Firm presented the 2021 Hutchinson Utilities Commission Independent Audit Report, Mr. McGraw also provided Financial statement packets that show more detail along with, how the review went. Mr. McGraw stated the audit was conducted in accordance with the ,Generally Accepted Auditing Standards and Government Auditing Standards. The financial statements of'the Commission are presented fairly in the firms' opinion. Mr. McGraw reviewed the Statement of Net Position. Assets did decrease in 2021 with liabilities also decreasing, Overall Net Position did increase in 2021, which is the trend over the last several years. Mr. McGraw reviewed the Cash and' Investment Balances. Mr. McGraw reviewed the Electric and ons Operating Revenues ?nd �Expenses. Motion by Commissioner Hanson, second by Commissioner Wendoirff to Approve the 20,21 Financial Audit. Motion carried unanimously. W7TrT"T-r1M Mr. Martig presented the Financial Statements. The main difference between February 2021 and February 2022 is the Power Cost Adjustment, For the Electric Division, Power Cost Adjustment in February 2022 brought in an additional $137k for the month/$2431< YTD; February 2021 brought in $468K for the month/$673K YTD. For the Natural Gas Division, there was no fuel cost adjustment for February 20,22; February 2021 fuel cost adjustment totaled $1.1 M for the month. GM Carter noted in the Natural Gas Division the usage, CF's, sold is the highest since 2013. Motion by Commissioner Wendorff, second by Commissioner Martinez to approve the financial statemenits, Motion carried uniainimously. P 10 1115-0177 M A = 6. Comm uin icat�ion a. City Administrator — Matthew Jaunich — L Ready for Construction Season; West of Rec Center, Storm water proje PD and Ice Arena. b. Divisions iDan Lang, Engineering Services Manager — Nothing to report ii. Dave Hunstad�, Electric Transmission/Distribution Manager —Absent ill. Mike Gabrielson, Production Manager — 1 , Emission Stack Testling at Plant 1 this week, Plant 2 wfll be next wee John Webster, Natural Gas Division Director — Nothing to report v. Jared Martig, Financial Manager- !. PILOT will be going up 2 % in 2023 c. Human Resources — Brenda Ewing- Absent /Angie Radke - Nothing to Report d. Legal — Marc Sebora — i. Nothingto Report e. General Manager — Jeremy Carter iBusiness Updates were sent out. ii. Start looking at calendars- Would like to have a Cost of Service Study Workshop solon, process to start in June, final determination iin August, presented at Council in Sept and then adjust rates for October if needed, Currently working on Bench marking ratios for Electric and Gas Divisionsi. fil. Legislative Update, — This Legislative Session has been a little quiieter. One of the topics is to reimburse customers aloinig with municipalities through tax credits and direct municipal reimbursements from the polar vortex last year, iv, Climate Action Plan discussion 7. Policies a. Review Policies i. Section 3 of Exempt Handbook Section 3 of Non -Exempt Handbook N i. Deferred Compensation — These are employee sponsored plans, Stari does not think it is applicable to complete a probation period Purchasing Policy — Looking to add credit cards for the Production Crew Chiefs Motion by Commissioner Hanson, second by Commissioner Wendorff to Approve Changes to the Deferred Compensation and Purchasing Policy, Motion carried' unanimously. [.Irjlflofm : MEMO= 01=1 M�r, Webster presented Approval of Requisition #009080 — 2022 Residential Meters. Thle Natural Gas Division, has a need for additional residential diaphrag meters to replace the 1970's era meters that are being removed, retired, along with new construction. Although, Groebrier's is the lowest price, the delivery dat- is excessive. Staff is recommending ordering the meters through KGMI. This is "I Motion by Commissioner Martinez, second by Commissioner Wendor-6 to Approve Requisition #009080 — 20,22 Residential Meters to KGM. Motion carried unanimously. Mr. Gabrielson presented Approval of Requisition #009087 — Plant 1 Elevator Upgrades. Per the state inspection of Plant I elevator, it was found that there are several code requirements that are needed. The attached summary will bring the elevator up to current code. The annual safety inspections are covered under the TILE service contract that is now in place. This is a 2022 budget item. Motion by Commissioner Hanson, second by Commissioner Martinez to Approve Requisition #009,087 — Plant 1 Elevator Upgrades., Motion carried unanimously. I'Mil MEN, iw i I i ill •i ii I Iiii l GM Carter presented Approval of Requisition #009088 — ChargePoint DC Fast Charging Station., HUC is looking into installing a second Electric Vehicle DC Fast Charging station for public use. The first ChargePoint DC Fast Charging Station that was installed in November 2020 is located by the river'. Talking with the City, the best location for the second station looks to be in the Recreation Center parking lot. This is a 2022 budget itern. K! Motion by Commissioner Wendorff, second by Commissioner Hanson to Apipro Requisition #i009088 — ChargePoint DC Fast Charging Station. Motion carried unanimously. I dl, Approve Natural Gas Facilities Maintenance Agreement — City of Fairfax Mr. Webster presented the Natural Gas Facilities Maintenance Agreement with the City of Fairfax. The City of Fairfax has requested HUC to continue performing the maintenance of the natural gas transmission/distribution facilities. The term of the Agreement is for one year. The only changes to last year's contract are the dates. A motion by Commissioner Martinez, second by Commissioner Hanson to Approve the Natural Gas Facilities Maintenance Agreement — City of Fairfax. Motion carried unanimously. e. Request to Sell 5MVA Transformer for Generator #3 GM Carter presented the Request to Sell 5MVA Transformer for Generator #3, Staff will be decommissioning Generator #3 at Plant 1 and the existing 5MVA step up, transformer that was used for the generator will, no longer be needed. The transformer is only 2 years old and still has warranty left. Staff would like to try and sell direct and will advertise the transformer to MMUA, APPA, and MREA members, Staff will look to recover the initial purchase costs and sell the transformer for $96K. A motion by Commissioner Hanson, second by Commissioner Wendorff to Approve the; Sale of the 5MVA Transformer for Generator #3. Motion carned unanimously. 10. Adjourn There being no further business, a motion by Commissioner Wendorff , second by Commissioner Martinez to adjourn the meeting at 3:49p.m. Motion carried unanimously. ATTEST: � LLL M m tt Cheney, President 4 --bon Martinez, Secretary,""