01-31-2024 HUCMMINLUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, January 31, 2024
Call to order — 3:00 p.m.
President Anthony Hanson called the meeting to order. Members present: Presi ent
Anthony Hanson; 'Vice President Matt Cheney; Secretary Don Martinez, Commissioner
Robert Wendorff; Commissioner Kathy Silvemalle; GM Jeremy Carter; Attorney Marc
Sebora
a. A motion made by Commissioner Cheney, second by Commissioner
Wendoriff to elect Dion Martinez to the positioin of President, Motion carried
unani'lmoiusl'y.
b. A motion made by Commissioner Martinez, second by Commissioner
Silverniale to elect Matt Cheney to the poon of Vice President. Motion
carried unanimously.
c. A motion made by Commissioner Wendorff , second by Commissioner
Martinez to elect Kathy Silvernale to the position, of Secretary. Motion carried
unanimously.
d. A motion made by Commissioner Silvernale, secondby Commissioner
Cheney to re -appoint Marc Sebora as legal counsel. Motiion carried
unanimously.
e. A motion made by Commissioner Martinez, second by, Commissioner
Wendorff re -appoint Angie Radke as recording secretary. Motion carried
unanimously.
President Hanson turned item 2f over to vice president Matt Cheney.
President Anthony Hanson will be abstaining from item 2f.
3. Approve Consent Agenda
a. Approve Minutes,
bRatify Payment of Bills
Motion by Commissioner Cheney, second! by Commissioner Silvernale to Approve
the Consent Agenda, Motion carried unanimously.
4. Approve Financial Statements
Mr. Martig presented the Financial Statements. December Financials are always
difficult to compare to previous years due to GASB and other year-end entries.
Salaries and Benefits hadl a large December 2023 decrease mostly due to a year-
end GASB entry for PERA Iliabillities. The 2023 entry has not been done yet as the
P,ERA report is not out yet. Another year-end entry that does not affect cash but is
required is a market to market adjustment to adjust the value of HUC investments.
GM Carter noted that financials are coming in as expected to the budgets.
Motion by Commissioner Silve,rnale, second by Commissioner Martinez to Approve
the Financial Statements. Motion carded unanimously.
5. Open Forum
6. Communication
a. City Administrator— Matthew Jaunich —
i. Nothing to Report
b. Divisions
i. Dan Lang, Engineering Services Manager — Nothing to report
ii. Dave Hunstad, Electric Transmission/Distribution Manager —
1. Provided an update on the 2 outages in the last couple of weeks. Staff
replaced some switches that had failed
iii. Mike Gabrielson, Production Manager —
1. Continuing to work on Unit 1
iv. John Webster, Natural Gas Division Director —
1. Provided Heartland Corn Project Update
v. Jared Martig, Fiinanicial Manager-
1. Auditors were here last week. Looking to have presentation in March
2. Will have Sales Tax audit update next month
c. Human Resources- Angie Radke -
i. Working on OSHA Logs
d. Legal — Marc Sebora —
i. Nothing to report
e. General Manager —Jeremy Carter
i. Met with Senator Gruenhagen and MRES today regarding Legislative
priorities coming up
ii. U,pdatinigi Cash Flow Models
iii. Provided LM6000 update
7. Policies
a. Review Policies
i. Section 1 of Exempt Handbook
ii. Section 1 of Non -Exempt Handbook
No changes recommended at this time.
9
8. Unfinished) Business
�4111111111111 I,
Mr. IHuinstad presented the Annual Solar Production for 2,0123. Staff is able to
calculate the cost savings from purchasing additional energy from MISO by
comparing the actual MISO hourly Locational Marginal Pricing (LMP) with the
hourly production of the array. For 2023, the, array generated 1,082,237 KWH
with a cost savings of $34,284.24. The array was anticipated to operate at a 14%
capacity factor, however for the first full 24 months the array is operating better
than expected with a capacity factor of 19.2%.
Mr. Hunstad presented Approval of Cogeneration and Small Power Production
Tariff. Municipal Utilities annually shall file for review and approval of a
cogeneration and small power production tariff with the governing body. Mr.
Hunstad reviewed Schedules 1: For facilities of 40KW or, less and Scheduile 4: for
facilities 40KW — 1 OOKW.
STITWFUF 77F =71
Approve Cogeneration and Small Power Production Tariff. Motion cam
unanimously. i
Mr. Hunstad reviewed the 2023 Distributed Energy Resources Generation Report.
The law requires municipal utilities that have adopted co -generation policies, to
review annually all net energy billed qualifying facilities. HUC has 18 active Solar
DER Co -generation facilities which consist of 13 Commercial, 4 Residential and 1
Utility owned.
'WIN" I I I I I I � Ili �i NARROW! i
10 1-101110 =Izillllil I I I I I � I Ili
Mlr. Hunstad presented Approval of Req#009794 — Trencher/Plow Service
Machine Replacement. HUC is due to replace the 2007 Ditch, Witch 420SX
trencher/plow service machine per the fleet replacement schedule. Staff is
recommending the 2024 Vermeer PTX40 which is part of the S,ourcewell
Cooperative Purchasing Contract for State and Local Governments. Quote also
includes a trade in value of $17,500 for the 2007 Ditch Witch. Sales tax will be
paid separately once the Vermeer PTX40 is delivered.
K
A motion by Commissioner Wendorff, second by Commissioner Cheney to
carded unanimously.
11! 111 61VI!!!1111�11111111111 I N
I re PI I . ; I M- 17111m Im
Mr. Lang presented the End of Year Energy Summaries. Summary charts show
how 2023 went as far as load usage, costs, and where it came from compared to
previous years.
HLIC Energy Graph shows 20 years of data and what the cost of energy is. The
key line would be the green line which is roughly the wholesale cost, buying from
MISO, MIRES and what is being generated.
System Load Average MWh chart compares, current 2023 year to last 2 years.
Load Duration Curve shows how MRES contract is working. Still going well.
Annual Generation (MWh) chart shows 2�O years of information. 2023 shows the
amount of generation that is being generated by the plants.
Annual System Load chart has been trending down.
f. Approval of �Req#009793 — Task Order #8 — HTI Substation Relay and RTU
Upgrades
Ms. Lang presented Approval of Req#OOi9793 — Task Order #8 — HTI Substation
Relay and RTU Upgrades. Similar to past substation upgrades an engineering
firm (DGR) will be used to design the protection system scheme for the substation
and feeders, specify materials, develop relay settings, and commission the relays.
DGR will also design and specify the materials to replace the obsolete llex RTU
and integrate with the new relaying eqIuiipm,ent, Staff will procure and install the
equipment.
Approve Req#009793 — Task Order #8 — HTI Substation Relay and RTU
Upgrades,. Motion carried unanimously. I
III I I' I, Ii IIIII I R IIIIF I I I III I I IiI I I I Imp I I I
I WFIE-117-1-1K.- -1113julism
Mr. Lang presented Approval of Hutchinson Substation Circuit Breaker
Advertisement for Bids. Staff i's requesting approval to advertise for bids for
115kV and (I circuit breakers to be installed at the Hutchinson Substation as
part of the 11 5kV expansion project. Looking at a 2-year lead time frame,
FAI
A motion by Commissioner, Silv,ernale, second by Commissioner Wendorff to
Approve Hutchinson Substation Circuit Breaker Advertisement for Bids. Motion
carried unanimously.
9h. Approve Phase 2 Plant 1 Tuck Pointing
Mr. Glabrielson presented Approval of Phase 2 Plant I Tuck Pointing. Phase one
was completed in 2023. Phase 2 will, consist of tuck pointing and sealing the
south side of the plant and the north and south switch gear buildings. In 2025,
Staff is, looking to complete phase 3. Total project cost when complete will be
$341,9108.
Mr. Gab,rielson presented Approval of Phase 4 Plant 1 Cool�ing Tower. Phase 4 is
the final phase of the Cooling Tower Repair Project and will consist of
replacement of west and middle fan blades and all 3 fan stacks. Looking to
complete in the Spring with the Tuck Pointing project.
A motion by Commissioner Cheney, second by Commissioner Wendorff to
A
I pprove Phase 4 Plant 1 Cooling Tower. Motioni, carried unanimously.
9j. Approve Union Contract January 1, 2024 — December 311, 2026
GM Carter presented Approval of Union Contract January 1, 2024 — December
31, 2026. A redlined version was sent to the Commissioners to see changes.
The union and management sub -committees met a couple of times to discuss
and negotiate the tentative terms and conditions of a new contract upon final
approval by the union and board of commissioners. On January 9111, the union
members ratified the tentative terms and conditions of the contract document
which is in the commission packet. In years past the contract has been ratified by
the end of the year but a tentative agreement was not met by both sides. GM
Carter thanked Commissioner Cheney and Silvernale for being a part of the
committee. Ms. Radke wiill be working with the State on the HCSP portion.
A motion by Commissioner Martinez, second by Commissioner Sillivernale to
Approve Union Contract January 1, 2024 — December 31, 20126. Motion carried
unanimously.
5
Ms. Radke presented Approval; of Sick, Holiday and Family Death Poilicies. With
'the approval of the, union contract, these polices need to be updated in the
Exempt and Non -Exempt Handbooks.
1,0. Adjourn
There being no further business, a motion by Commissioner Cheney, second by
Commiissioner Martinez to adjourn the meeting at 3:46p.m. Motion carried
unanimously.
ATTEST-
VMartinez„ President
0
11141VIL14,1111
Kathy SilArnale, Secretary