04-17-2023 Workshop (Joint Meeting with HUC)HUTCHINSON CITY COUNCIL
JOINT WORKSHOP WITH THE HUTCHINSON UTILITIES BOARD
MEETING MINUTES
MONDAY, APRIL 17, 2023 AT 2:00 P.M.
CITY CENTER — COUNCIL CHAMBERS
Call to Order
Mayor Forcier and HUC Chair Hanson called the meeting to order at 2:00 p.m. Members present
were: Council Member Dave Sebesta, Council Member Pat May, Council Member Chad
Czmowski, Council Member Tim Burley, Commissioner Kathy Silvernale, Commissioner Don
Martinez; Commissioner Anthony Hanson; Commissioner Matt Cheney; Commissioner Bob
Wendorf£ Other City and HUC staff were present: Matt Jaunich, Marc Sebora, Mike Stifter,
Tom Kloss, Jeremy Carter, Dave Hunstad, Mike Gabrielson, Jared Martig
2. Welcome/Introductions
3. Update on City Projects
Matt Jaunich, City Administrator, presented before the group. Mr. Jaunich provided updates on
City staffing (director new hires), the new police facility, growth planning study, housing study,
new apartment complex on Michael Court, Uptown Grand development, Family Dollar, Five
Below, sale of Event Center, citizen survey being distributed, and city sales tax that will be
expiring in 2026.
Discussion was held regarding growth areas in the city for both commercial and residential
development.
4. HUC's Current Business/Financial State
a. Inflation/Lead Times
b. Intensive CAPEX Next 5 Years — Substation & Generation Facility upgrades (Emphasis
on reliability)
c. HUC specifically tracks the return on the electric production cost center to ensure its still
viable for HUC to invest in generation assets
d. Minimal staff turnover
Jeremy Carter, HUC General Manager presented before the group. Mr. Carter provided a high-
level overview of HUC's financials, generation plants, substation improvements, capital projects,
maintenance items, and solar array project. HUC's energy reliability has been rated the top 1% in
the nation. Staffing levels have remained consistent.
5. 2040 Carbon -Free Regulations
Mr. Carter reviewed the regulations related to 2040 carbon -free requirements and how they apply
to HUC.
6. Discussion around HUC's rates
a. General industry benchmark comparisons
Mr. Carter reviewed where HUC sits competitively amongst classes with other industry
providers. Overall, HUC is doing very well and has very competitive rates.
b. Latest Cost of Service results
Mr. Carter explained when and how rate studies are conducted for HUC — which is approximately
every five years. HUC is meeting with their consultant on the current cost of service study this
Thursday, April 20th, at 2:00 p.m.
7. Natural Gas Projects on the Horizon
Mr. Carter provided updates on current customers and upcoming projects.
8. Update on Street Lighting Change out
Dave Hunstad spoke about an LED conversion project with the city's street lights. Currently
about half of the street lights have been converted and the other half will be completed in 2024-
2025.
9. City/HUC partnership in making Hutchinson "Electric Vehicle" ready
Mr. Carter explained that HUC is crafting a program related to electric vehicles both for
residential and commercial customers. The current electrical charger in place gets used often by
many users.
10. Does the City Council have anything they would like information/clarification on, or has the City
Council heard any comments or concerns from citizens?
11. Anything Else?
Burley asked how many customers are on the budget plan. Mr. Carter explained that 300-400
customers out of 6000 customers utilize the budget plan. The number of assisted customers has
increased since 2020 mainly due to federal funds that are available. Mr. Carter noted that the
majority of customers are very responsible bill payers.
Mr. Carter explained that HUC has its own generation but also can market and buy/sell off the
grid. This business model is very beneficial as HUC operates like an investor -owned company
but operates for the community.
Tours for both the City Council and the HUC Board will be arranged.
12. Adjournment
Motion by Czmowski, second by Burley, to adjourn at 3:30 p.m.
Motion by Cheney, second by Martinez, to adjourn at 3:30 p.m.
Motion carried unanimously.