07-26-2023 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, July 26, 2023
Call to order — 3:00 p.m.
President Anthony Hanson called the meeting to order. Members present: President
Anthony Hanson; Secretary Don Martinez; Commissioner Robert Wendorff;
Commissioner Kathy Silvernale; Attorney Marc Sebora; GM Jeremy Carter
Absent: Vice President Matt Cheney
1. Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Martinez, second by Commissioner Wendorff to Approve
the Consent Agenda. Motion carried unanimously,
3. Approve Financial Statements
Mr. Martig presented the financial statements. Estimate on Transmission was high,
Electric Division Net Profit is $35K higher than statement.
GM Carter noted that Staff is continuing to watch consumption. GM Carter spoke of
the Power Cost Adjustment. Divisions are trending fairly consistent.
Motion by Commissioner Silvernale, second by Commissioner Martinez to Approve
the Financial Statements. Motion carried unanimously.
4. Open Forum
5. Communication
a. City Administrator —Matthew Jaunich —Absent
b. Divisions
i. Dan Lang, Engineering Services Manager — Nothing to report
ii. Dave Hunstad, Electric Transmission/Distribution Manager —Absent
iii. Mike Gabrielson, Production Manager —
1. American Masonry Restoration has been working at Plant 1 on the
tuckpointing. Should be completed in next 3-4 weeks
2. Unit 1 removal is on target for end of August
iv. John Webster, Natural Gas Division Director — Nothing to report
v. Jared Martig, Financial Manager —
1. Amy Rick started in Customer Service
c. Human Resources — Angie Radke — Absent
1 Jeremy Carter noted that Mike Lien started on the Natural Gas Meter Side
and Staff is in the process of hiring a Natural Gas Welder Service Person
d. Legal — Marc Sebora — Nothing to Report on legal side. From a City of
Hutchinson side —
1. City Council did approve at last night's meeting to go out for RFP's for the
sale of the old PD property, Emergency Operations Center and the vacant
adjacent lot to the PD.
2. Discussion was held on the Adult Use Cannabis Law that starts next week
e. General Manager — Jeremy Carter
i. EDA meeting recap — Discussion was held on procuring some of the land
next to Rite Way Conveyor
6. Policies
a. Review Policies
i. Section 6 of Exempt Handbook
ii. Section 6 of Non -Exempt Handbook
iii. Appendices of Exempt Handbook
iv. Appendices of Non -Exempt Handbook
b. Approve Changes
i. Appendix B — Exempt
Want to standardize and keep consistent with other policy updates that were
modified from 9 months' probation to 6 months' probation.
Motion by Commissioner Wendorff, second by Commissioner Silvernale to Approve
Policy Change. Motion carried unanimously.
7. Unfinished Business
8. New Business
a. Re -adopt the Data Practices Act & Public Records Request Policy
Mr. Sebora presented Re -adopt the Data Practices Act & Public Records Request
Policy. The State of Minnesota requires that political subdivisions like HUC adopt
a data practices policy, which guides both the HUC and members of the public in
obtaining information from HUC. State of Minnesota also requires that HUC adopt
the data practices policy annually prior to August 1. There are no changes.
A motion by Commissioner Silvernale, second by Commissioner Wendorff to Re-
adopt the Data Practices Act & Public Records Request Policy. Motion carried
unanimously.
b. Amend Advertisement for Bid — Hutchinson Substation 83 MVA Transformer
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Mr. Lang presented Amendment of Advertisement for Bid - Hutchinson Substation
83 MVA Transformer. Staff is requesting Board approval to extend the bid opening
date to Sept 7, 2023 at 2pm. This will allow bidders time to submit bids.
Motion by Commissioner Martinez, second by Commissioner Wendorff to Approve
Amendment of Advertisement for Bid - Hutchinson Substation 83 MVA Transformer.
Motion carried unanimously.
c. Approve Rate Changes for the Electric and Natural Gas Divisions
GM Carter thanked the Commission for taking the time and due diligence in looking
at all the rate information that was provided from Utility Financial Services. Many
considerations were discussed relating to ensuring the various components of how
HUC collects revenue through its monthly billing and how it aligns against the fixed
and variable costs of operation.
Based on the Cost of Service results and feedback from the Commission, attached
is a resolution for approval that would continue to move the various classes towards
the cost of service results and continue to align the various revenue components to
the operational cost components for the next 3 years for both Electric and Natural
Gas Divisions. If the resolution is approved, the rate design structures would be
presented to the City Council on August 8tn
Motion by Commissioner Martinez, second by Commissioner Wendorff to Approve
proposed Resolution 23-01 changing the Hutchinson Utilities Commission Rate
Structure for 2023, 2024 & 2025 for Electric and Natural Gas Divisions. Motion
carried unanimously.
Motion by Commissioner Silvernale, second by Commissioner Wendorff to Approve
proposed changes to the Contract Industrial Customers in the Natural Gas Division
as presented by UFS and GM Carter. Motion carried unanimously.
9. Adjourn
There being no further business, a motion by Commissioner Silvernale, second by
Commissioner Wendorff to adjourn the meeting at 3:31 p.m. Motion carried
unanimously.
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