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11-29-2023 HUCMMINUTES Regular Meeting — Hutchinson Utilities Commissi Wednesd�ay, November 29, 2023 1 Call to order — 300 p.m. President Anthony H'anso�n called the meeting to order, Members present: President Anthony Hanson; Vice President Matt Cheney; Secretary Don Martinez-, Commissioner 1. Conflict of Interest 2. Approve Consent Agend? a. Approve Minutes b. Ratify Payment of Bi�ll�s Motion by Commissioner Martinez, second by Commissioner Wendorff to Approve the Consent Agenda, Motion carded unanimously. 3. Approve Financial Statements ffir. Martig presented t,he financial statements. Electric Division KWH sold increased from last year. Total Revenue and Expenses decreased from last year. Sales decreased in large part due to a Power Cost Adjustment in October 2022 but not in October 202i3. Natural Gas Division Total Revenue and Expenses both increased from last year. Mr. Martig also reviewed the Bond Payments that were made. Motion by Commissioner Silvernale, second by Commissioner Cheney to Approve the Financial Statements. Motion carded unanimiouisly, 3M9r-1M3= 5. Communication a. City Administrator— Matthew Jaunich — L Working on finalizing budgets ii. Truth and Taxation December 5th iii. Starting first phase of next year's construction projects PIERNM "M , i. Dan Lang, Engineering Services Manager — Nothing to report ii. Dave H�unstad, Bectric Transmission/Distribution Manager — Nothing to report iii. Mike Gabrieilson, Production Manager — Absent John Webster, Natural Gas Division Director — 1. Finalizing construction season 2. Heartland Corn station is almost complete., Headand Corn pipeline Is about 50%i complete. Pipeline is roughly 8 miles long v. Jared Martig, Financial Manager — 1. Auditors will be here week of January 22 c. Human Resources — Angie Radke I . Finalizing 2024 Benefits 2. Working on policies for review in December 11111l;iir� e. General Manager — Jeremy Carter 1, Union negations meeting next Friday, December 1 2. Finalizing budgets and Cap X 3. Starting to, work on Legislative priorities for the Legislative Session 6. Policies a. Review Policies i. CI Rebate Level of Authority ii, Delegation of Authority Policy iii. Financial Reserve Policy iv. Service Beyond City Limits of Hutchinson v. Surplus Property Policy 4. Approve Changes i. Payments of HUC Pa,yables ii,, Purchasing Policy/Credit Cards/Fixed Assets fl. Investment Policy iv, Petty Cash, — Exempt and Non-Exem:pt Yne criange, F, F In T ar afTA111.141777, =1(r?IFMnVioAcj7Ure( ii Cards/Fixed Assets Policy. Motion by Commissioner Cheiney, siecond by Commissioner Silveirnaile to Appro P I• I olicy Changes. Motion carried unanimously. 7. Unfinished Business 8. New Business Mr. Martig presented Approval of Non -Wavier Tort Liability Limits for General Liability Insurance, which is a requirement by the League of Minnesota Cities Insurance Trust. Staff is recommending to not waive the torte liability limits. Completion of the Wavier Form is done annually. In the past HIUC has not waived the municipal tort liimit. K Motion by Commissioner Martiniez,, second by Commissioner Wendorff to Approve Non -Waiver of Tort Liability Limits for General Liability Insurance. Motion carried unanimously, b. Approve Customer Uncollectable Write -Offs Mr. Marfig presented the Customer Uncollectabile Write -Offs, HUC is requesting to approve write-offs of $4,883.37. The amount is less than last year. Motion by Commissioner Silvernale, second by Commissioner Cheney to Approve Customer UnGollectable Write -Offs, Motion carried! unanimously, c. Approve Interconnect Agreement for, Heartland Corn Products Mr. Webster presented Approval of' Interconnect Agreement for Heartland Corn Products. Heartland Corn Products (HCP) is requesting that an interconnection be put in pilace between Hutchinson, Utilities' 12 natural gas pipeline and the 6" pipeline that HC�P is currently constructing in Sibley County. The attached agreement specifies construction and operational parameters that will ex�ilst between both parties at the interconnect station. w w oil go 11 1 p i!11 I I I � an a 6 a re I to"I ;*Tqffrm AA -9 11sruslitITAIRRI ME d. Approval of Natural Gas Firm, Transportation Capacity Agreement with Heartland Corn Products OMMORM Moition by Commissioner Wendlorffsecond by Commissioner Martinez to ApproV4 �Iatural Gas Firm Transportation Capacity Agreement with Heartland Corn Product�q Motion, carried unanimously. e. Approval of Operating Agreement Heartland Corn Products Natural Gas Transmission Facilities Mr. Webster presented Approval of Operating Agreement Heartland Corn Products Natural Gas Transmission Facilities. Heartland Corn Products (HCP)1 has requested that HUC's Natural Gas Division perform all of the op;era,tion, and maintenance', as required by DOT, on the 6" high pressure natural gas pipeline that is currenitly being i�nstal�l�ed. The costs for developing all HCP specific manuals and programs, that are required for the operation and maiintenance of HCP"s piipeline as welil as the cost of implementing a Public Awareness Program, an EmiergeOfficial Liaison Program, Integrity Management, etc. will be borne by HCP. 3 Motion by Commissioner Silvernale, second by Commissioner Cheney to Approve Operating Agreement Heartland Corn Products Natural Gas Tranismiission Facilities. Motion carried ously. f . Approve Req#009,733 — Replace 2010 Dodge Dakota Mr. Hunstad presented Approval of Req#009733 Replace 2010 Dodge Dakota, As part of the Fleet Management Program the, 2010 Dodge Dakota is, due for repilacement. Original budget was to replace with a smaller truck, however there is nothing available on the State Contract. Staff is recommending a 20124 F-150 from the Minnesota State Contract for $44,500.92, which will result in an increase to budget of $9,500-92. Motion by Commissioner Cheney, second by Commissioner Silvernale to Approve Req#0;09733 — Replace 2010 Dodge Dakota. Motion carried unanimously. g. Approve Req#009734 — Replace 2012 Dodge Ram Mr, Hunstad presented Approval of Req#009734 — Replace 2011�2 Dodge Ram, As A,art#f-t'h6 Fidet 4"lanagenniant Pr-#,g*12 W#Ige Ram is4veftr reo4ace-mi&2't, Staff is recommending a 202i4 F-250 FTM24 from the Minnesota State Contract, 2023 budget was $55k, new replacement truck will be $4i9,784.09 which will result in a decrease to budget of $5,215.91. Motion by Commissioner Wendorff, second by Commissioner, Martinez to Approve Req#009734 — Replace 2012 Dodge Ram. Motion carried unanimously, h. Approve Req#OiO9735 City of Hutchinson LED Street Light Conversion Mr. Hunstad presented Approval of Req#0091735 —i City of Hutchinson LED Street Light Conversion. Requisition is for the third year of LED fixtures that are scheduled for delivery in February. Motion by Commissioner Silvernale, second by Commissioner Cheney to Approve Req#009735 — City of Hutchinson LED Street Light Conversion. Motion carried unanimously. President Hanson began the discussion, of Reappointment of Don Martinez to the I Hutchinson Utilities Commission. Commissioner Martinez is willing to be re- appointed for hissecond 5-year term. Motion by Commissioner Cheney, second by Commissioner Silvernale to Re- appoint Don Martinez to the Hutchinson Utilities Commission for a full 5-year term. Motion carried unanimously. 4 Attorney Marc Siebora will infoor that the Commission has recomimi:enid Commissioner Martinez to be re -appointed. Recommendation will go to the City Council in Dec,Zber. President Hanson discussed the Date for Performance Review of Hutchinson Utilities General Managiler. Per the General Manger's contract with Utilities, an annuail Performance Review is to be conducted. Generally, this, review has occurreid in December at the scheduled" Commission Meeting or it can occuir at a Special M�eeting, Ms. Radke noted that GIVI Carter •wouild have the opportunity to decide if it wouild be Commissioners have completed; and returned review forms, all results will be compiled for, discussion at the review. After discussion, GM Carter and Commissioners agreed to have the review at the regular re-schedulled Commission Meeting on December 20, 2023. Adjourn There being: no further business, a motion by Commissioner Martinez, second by Commissioner Cheney to adjourn, the meeting at 3:24p.m. Motion carried unanimously, ATTT: �,k4 Lky�j ES Anthony Hanson„ President 0 Prn ITIO N rr