02-28-2024 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, February 28, 2024
Call to order — 3:00 p.m.
President Don Martinez called the meeting to order. Members present: President Don
Martinez; Vice President Matt Cheney; Secretary Kathy Silvernale; GM Jeremy Carter;
Attorney Marc Sebora
Absent: Commissioner Anthony Hanson; Commissioner Robert WendorFf
1. Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Cheney, second by Commissioner Silvernale to Approve
the Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
Mr. Martig presented the Financial Statements. Revenues were down despite
increased usage due to Power Cost Adjustment (PCA) bringing in $216k a year ago
compared to zero dollars this year. PCA would have brought in $320k if HUC would
have been below the threshold in the rate stabilization fund. HUC is now below the
threshold so future PCA's can be expected.
GM Carter spoke of Sales for Resales with a new customer starting in January.
GM Carter reviewed the Industrial and Large General Classes for both Electric and
Natural Gas Divisions noting some facilities being down. Purchase Power and PCA
were also reviewed.
Motion by Commissioner Silvernale, second by Commissioner Cheney to Approve
the Financial Statements. Motion carried unanimously.
4. Open Forum
5. Communication
a. City Administrator — Matthew Jaunich —
i. Council authorized to go out forbids for lighting project at the VMF
ii. New grandstand was awarded for VMF.
iii. In the middle of Strategic Planning
b. Divisions
i. Dan Lang, Engineering Services Manager — Nothing to report
ii. Dave Hunstad, Electric Transmission/Distribution Manager — Nothing to
report
iii. Mike Gabrielson, Production Manager —
1. Tuck Pointing project to start soon
iv. John Webster, Natural Gas Division Director —
1. Pipeline Emergency Responder Training tomorrow
2. MNOPs Audit to start in the next couple of weeks
3. Provided Heartland Corn Project Update
v. Jared Martig, Financial Manager- Nothing to report
c. Human Resources — Angie Radke -
i. Working on a couple of Salary Surveys for surrounding areas
d. Legal — Marc Sebora —
i. Nothing to report
e. General Manager — Jeremy Carter
i. Q market survey
ii. Backfilling Positions - Customer Service Rep and Natural Gas Welder
Service Person
iii. Legislative Updates
iv. Cash Flow model - working on options moving forward
6. Policies
a. Review Policies
i. Section 2 of Exempt Handbook
ii. Section 2 of Non -Exempt Handbook
No changes recommended at this time.
b. Approve Changes
i. Equal Employment Opportunity Policy
Ms. Radke spoke to the changes on the Equal Employment Opportunity Policy.
The changes being made mirror the League of Minnesota EEO policy.
Motion by Commissioner Cheney, second by Commissioner Silvernale to
Approve the Policy Changes. Motion carried unanimously.
7. Unfinished Business
8. New Business
a. Approval of 3M Natural Gas Transportation and Daily Swing Supply
Agreement
Mr. Webster presented Approval of 3M's Natural Gas Transportation and Daily
Swing Supply Agreement. 3M's current agreement expires on March 1, 2024 at 9
A.M. This agreement provides transportation rights to 3M on Hutchinson's facilities
from March 1, 2024 at 9:00 A.M. through March 1, 2025 at 9:00 A.M. This
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agreement is identical to the 2023 agreement except for date changes and
increased monthly meter fee. All fees are in alignment with the rate realignment
structure proposed by the Commission for this customer.
Motion by Commissioner Silvernale, second by Commissioner Cheney to
Approve 3M Natural Gas Transportation and Daily Swing Supply Agreement.
Motion carried unanimously.
b. Approval of Natural Gas Facilities Maintenance Agreement — City of Fairfax
Mr. Webster presented Approval of Natural Gas Facilities Maintenance
Agreement — City of Fairfax. The City of Fairfax has requested HUC to continue
to perform the maintenance on the natural gas transmission/distribution
interconnect and the line control facilities serving all customers to the East on
Highway 19 and the Cities of Fairfax and Gibbon effective April 1, 2024.
Motion by Commissioner Cheney, second by Commissioner Silvernale to
Approve Natural Gas Facilities Maintenance Agreement to the City of Fairfax.
Motion carried unanimously.
c. Approval of HTI/TDK Amendment to Natural Gas Transportation Agreement
Mr. Webster presented Approval of HTI/TDK Amendment to Natural Gas
Transportation Agreement. HTI/TDK has been purchased by a holding company.
HUC needs to amend the agreement to allow bills to be sent to Highland Park
Industrial, LLC located in Denver, Colorado.
Motion by Commissioner Silvernale, second by Commissioner Cheney to
Approve HTI/TDK Amendment to Natural Gas Transportation Agreement. Motion
carried unanimously.
d. Approve Req#009834 — 2024 GMC 1500 Pickups
Mr. Lang presented Approval of Req#009834 — 2024 GMC 1500 Pickups.
Looking at replacing two 2014 GMC 1500 pickups for the Production Department,
per the fleet management schedule. Based on MN state bid pricing.
Motion by Commissioner Cheney, second by Commissioner Silvernale to
Approve Req#009834 — 2024 GMC 1500 Pickups. Motion carried unanimously.
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Ms. Radke presented Approval of Implementation of a Protective Safety Footwear
Policy. Currently a couple of departments do have safety footwear that is
required in the departments. However, the Safety Committee and MMUA Safety
Coordinator is recommending a formal policy to have all HUC Staff in the
following departments to have protective safety footwear; Electric Division,
Natural Gas Division, Plant Electricians, Production and Inventory. The budgeted
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Motion by Commissioner Silvernale, second by Commissioner Cheney to
Approve Implementing a Protective Footwear Policy. Motion carried unanimously.
in rOTITOWO I IT,
'M Carter started the conversation with the Non -Union Grid Movement. GM
Carter provided information on what a 5% grid movement would mean for non-
union employees. With the Union Contract passing at the January meeting that
included a 5% increase for union employees, Staff would like to bring to the
Commission an adjusted 5% grid movement for the non -union employees.
Discussion was held about mirroring the 5% Union increase to the non -union
employees. Commissioners stated that it does make sense to move and mirror
the 5% movement with the non -union employees and would like to Approve the
raising the Non -Union Pay Grid an additional 1 % to the 5% as presented by GM
Carter. Motion carried unanimously.
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Mr. Gabrielson presented Approval of Additional Costs of NSR Work for Unit 1.
The Commission has authorized GM Carter to approve up to $700k for NSR work
on Unit 1. Staff is now requesting an additional $300k for a total of $1 M in NSR
repairs.
Mr. Gabrielson also provided an overall update on the balance piston and mid -
shaft repair.
Discussion was held on the additional NSR work and the time frame.
Motion by Commissioner Silvernale, second by Commissioner Cheney to
A Ot 1. Motion carried unanimousIv.
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9. Adjourn
There being no further business, a motion by Commissioner Cheney, second by
Commissioner Silvernale to adjourn the meeting at 3:31 p.m. Motion carried
unanimously.
...-._Kathy-Silverrra L-, .S°euretary--°,
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ATTEST:'��
Don Martinez, President
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