04-27-2022 HUCMM7,1111114.9
Regular Meeting — Hutchinson Utilities Commission
Wednesday, April 27, 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; Commissioner Robert
Wenidorff; GM Jeremy Carter; Attorney Marc Sebora
Absent-, Commissioner Kathy Silv,ernale
1. Conflict of Interest
2. Approve Consent Agenj
a. Approve Minutes
b. Ratify Payment of Bi Ils
Mobon by Commissioner M�artinez, second by Commissioner Wendorff to approve
the Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
Mr. Martig presented the Financial Statements. Electric Division Net Loss increased
by $70,732 over March 2021. Increased operating expenses were due to nozzle
cleaning, testing and repairs along with down, payment on elevator repairs that were
approved at last month's meeting. Natural Gas Division, heating degree days were,
1,021 compared to 751 a year ago, which led to an increase in usage and revenue
as well as purchased gas.
G,M Carter noted Electric Division Generator Fuel is up year to date by 125% due to,
contracts and runniing in, January andl February to hedge against any spikes and
volatility in the market. GM Carter reviewed the Cash Designation Report. Ratios
and Benchmarks will be discussed at the Cost of Service Workshop that is being
planned for May/June.
Discussion was held on the impacts, of hedging.
�T- no , 1=0 r e anstrii, sevoini 011](11ISS1111, e
financial statements. Motion carried unanimously.
UMM9,7Mz=
S. Communication
a. City Administrator— Matthew Jaunich —
L Construction, Season - Rec Center, PD and Ice Arena
b. Divisions
L Dan Lang, Engineering Services Manager — Nothing to repo
ii. Dave Hunstad, Electric Transmission/Distribution Manager
1. Construction Season
iii. Mike Gabrielson, Production Manager —i Nothing to report
John Webster, Natural Gas Division Director —
1 . Working on pigging project with TD Williamson
2. Setting up pricing for Hutchinson transport customer
v. Jared Martig, Financial Manager-
1. Nothing to Report
c. Human Resources — Brenda Ewing- Nothing to Report
— Angie Radke
i . Currently have a position for a Welder/Servilce Person in the Natural Gas
Dept open, someone left the company.
ii. Will be sending out and email to the Commissioners on avai�lability for May
and the first 2 weeks, in June to have a Cost of Service Workshop.
d. Legal — Marc Sebora —
i. Nothing to Report
e. General Manager — Jeremy Carter
i. Legislative Update — most energy topics will be rolled into Energy & Tax
omnibus bills.
Ii. EV Infrastructure Build -Out Bill —i Dept of Energy, Transportation and EPA
will begin rolling out federal money anticipated to start in Q4 of this year.,
iii. Glimate Action Plan - Commissioners pilease provide feedback, thoughts
and questions.
6. Policies
a. Review Policies
i. Section 4 of Exempt Handbook
Section 4 of Non-Exemp,t Handbol
No changes recommended at this time.
b, Approve Changes
i. Travel Expenses Exempt & Non -Exempt
1, Meal Reimbursement maximum to, follow United States General
Services Administration Per Diann Rates by location.
Motion by Comm issioner Hanisoini, second by
the Travel Expenses P'oilicy for both Exempt
unanimously.
7. Unfinished Business
8. New Business
0 1
7MISIM0
a. Approval of HTl/TDK Natural Gas Transportation and Commodity Purchase
Agreement
Mr.' ebster provided the annual agreement with H'TIITDK Natural Gas
Transportation. This agreement provides transportation and commodity
purchasing rights, to HTItTDK on Hutchinson Utilities' facilities, for a one-year term.
2
There are no changes to the agreement from last year.,
MGM=
Mr. Lang presented approval of Req #009124 - 3M Substation Relay and RT,'NL-
Upgrades. The existing electro-mechanical relaying equipment is to be replaced
at the 3M Substation in 2022, An enigiinieering firm will be used to design the
protection system scheme for the substation and feeders, specify materials,
develop relay settings and commission the relays, along with designing and
specifying the material to replace the obisoilete Flex RTU and integrate with the
new relaying equipment.
Motion by Commiissioner Martinez, second by Commissioner Hanson to Approve
Req #009124 - 3M Substation Relay and RTU Upgrades, Motion, carried
unanimously.
Mr. Hunstad presented the 20,21 Annual Benchmarking Report. The report
focuses on distribution system reliability across the country and is customized to
each utility that participates in the APPA eReliability Tracker service. Mr. Huns,tad
reviewed where HUC ranks to others in the region.
Great job from Commissions.
GM Carter presented approval of the Cost of Service & Rate Design Study with
UFS, Looking to have the Commission approve the process to get HIUC on the
schedule with UFS. This is a budgeted item. Inquired with other agencies as
well, however there was not room on the schedules to fit HUC in. It is also
anticipated other agencies would be significantly higher; UIFS was the lowest cost
5 years ago and has only raised the fees, $2K since that time. The other
advantage to HUC, is UFS has done the Cost of Service, & Rate Design Study in
the past; no learning curve and will be a smoother process. Since the last study,
there are more items for the Commission to consider; one main focus would be
the different types of rate schedules that include: Time of Use (TOU) rates,
Standby rates, Interruptible rates and RN�G rates. Discussions will need to be held
K
at the Cost of Service workshop on the different types of Rate schedules
available, what Staff is seeing and hearing from the customers and how to phase
in the different types of rates that are available. Havingi a workshop will help
provide information to UFS on what direction HIUC is headed towards in the
future.
Discussions were held on the different types of Rate schedules, that are available,
A motion by Commissioner Hanson, second by Commissioner Wendorff to
I
Approve the Cost of Service & Rate Design Study with UFS. Motion ca,rried
unanimously.
e. Approve Disposal of Surplus Assets at Plant #1 — Units 3, 4 and 8 along with
Diesel Fuel and Tank
Mr. Gabrielson presented the approval of Disposal of Surplus Assets at Plant #1 -
Units, 3, 4 and 8 along with Diesel Fuel and Tank., Engines 3, 4 and 8 have all
been decommissioned. Diesel: Fuel was only used in engines 3 and 4, since
those are decommissioned there is no use for the diesel fuel and tank. Did
inquire on what the costs could be for the demolition of the units and pricing came
back around $625K-$700K. GM Carter noted that Board approval to sell these
items is needed but timing for these will happen at different times. Staff would
also try to sell parts off the units to other Utilities before scrapping. Major removal
of the units will be part of the COS study, aIong with discussing new opportunities
that may be available and factoring all information into the -year CIP. The first
step is to have Commission approval to dispose of the assets which will then be
followed up with a better time line of when or how the items, will be disposed/sold.
A motion by Commissioner Wendorff, second by Commissioner Hanson to
Approve Disposal of Surp�us Assets at Plant #1 — Units 3, 4 and 8 along with
Diesel Fuel and Tank. Motion carried unanimously.
REENP =4--
Mr. Webster presented the approval of Req #009144- Purchase of Replacement
for Truck 130. In compliance with the 2020 Fleet Management Program the
Natural Gas Division is, to replace vehicle #130 which is a 2011 Chevrolet
Silveradlo 2500 HD 44 cab and chassis with: a utility body. The replacement cab
and chassis that is being recommend by Staff is a 20122/23 GMIC,Sierra 3 00,
SR', 44, Crew Cab,, Cab and Chassis. Right now, buying a, vehicle has been
hard. GM is taking orders on a limited quantity of vehicles in production,
Therefore, HUC felt it was prudent to enter into a contract with GMC for
production. The price for the vehicle is subject to change once the prices are
4
announced for the 2023 vehicles, which should be in late May. The price listed is
based on 2022 pricing.
A motion by Commissioner Martinez, second by Commissioner Hanson to
Approve R,eq #009144- Purchase of Replacement for Truck 130. Motion carried
unanimously.
iil� 10111
Mr. Webster presented the approval of Req #009145- Purchase of Replacement
for Truck 948, In compliance with the 202,0 Fleet Management Program the
Natural Gas Division is to replace vehicle #948 which is, a 201�O Chevrolet
Silverado, 25001 HD 44 cab and chassis, with a utility body. The replacement cab,
and chiassis thait is being recommend by Staff is a 2022/23 GiMC Sierra 3500,
S,RW, 4x4, Crew Cab, Cab and Chassis. Right now, buying a vehicle has been
hard. GM is taking orders on a limited quantity of vehicles in producfion.
Therefore, HUC felt it was prudent to enter into a contract with GIVIC for
production, The price for the vehicle is subject to change once the prices are
announced for the 2023 vehicles, which should be in late May.
A motion by Commissioner Martinez, second bommiss,ioner Wendorff to
Approve Req# 0091145 — Purchase Replacement for Truck 948. Mofion carried
unanimousl�y,
9. Adjourn
There being no further business, a motion by Commissioner Hanson, second by
Commissioner Weindorff to adjourn the meeting at 3:42p.mi. Motion carried
unanimously.
Doan Martinez, Secretary
r\
MATTEST: JAP�j P "I
Matt Cheney, President
M