03-27-2024 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, March 27, 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; Commissioner Anthony Hanson; Commissioner
Robert Wendorff; GM Jeremy Carter; Attorney Marc Sebora; Justin McGraw with
Conway, Deuth & Schmiesing Audit Firm
Absent: Secretary Kathy Silvernale
1. Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Cheney, second by Commissioner Hanson to Approve the
Consent Agenda. Motion carried unanimously.
3. Approve 2023 Financial Audit — Presentation by Justin McGraw
Justin McGraw with Conway, Deuth & Schmiesing Audit Firm presented the 2023
Hutchinson Utilities Commission Independent Audit Report. Mr. McGraw also
provided Financial statement packets that show more detail along with how the
review went. Mr. McGraw stated the audit was conducted in accordance with the
Generally Accepted Auditing Standards and Government Auditing Standards. The
financial statements of the Commission are presented fairly in the firms' opinion. Mr.
McGraw reviewed the Statement of Net Position. Total Assets decreased in 2023
with liabilities decreasing as well. Mr. McGraw reviewed the Cash and Investment
Balances.
Mr. McGraw reviewed the Electric and Natural Gas Divisions Operating Revenues
and Expenses.
Mr. McGraw summarized the Communications portion of the report and the General
Recommendations that consist of continuing to watch the Earned Sick and Safe
Time Law as the law continues to evolve. Mr. McGraw stated the audit went well and
the Staff was very helpful.
Motion by Commissioner Hanson, second by Commissioner Wendorff to Approve
the 2023 Financial Audit. Motion carried unanimously.
4. Approve Financial Statements
Mr. Carter presented the Financial Statements. GM Carter spoke of the Rate
Stabilization fund and how it effects the Customer Revenue. Expenses are tracking
consistent.
Motion by Commissioner Cheney, second by Commissioner Wendorff to Approve
the Financial Statements. Motion carried unanimously.
5. Open Forum
6. Communication
a. City Administrator — Matthew Jaunich — Absent
b. Divisions
i. Dan Lang, Engineering Services Manager —
1. Working with Staff and Miso on Unit 1 capacity
ii. Dave Hunstad, Electric Transmission/Distribution Manager — Nothing to
report
iii. Mike Gabrielson, Production Manager —Absent
iv. John Webster, Natural Gas Division Director —
1. 1 sc MNOPs Audit — passed. Will be back in June for Fields and Records
Audit
President Martinez and the Commission thanked Mr. Webster for his many
years of service and that his dedication and hard work is appreciated.
v. Jared Martig, Financial Manager- Absent
c. Human Resources — Angie Radke -
i. Working on a couple of Job Postings- Welder Service Person and Account
Coordinator
d. Legal — Marc Sebora —
i. Nothing to report
e. General Manager — Jeremy Carter
i. Provided a VMF Lighting Bid Opening Update from the City
ii. Regional MMUA Meeting to be held on June 6
iii. MMUA Legislative Rally was canceled due to weather but did have virtual
Legislative Updates
iv. Thanked John Webster for his years of service and leadership in the Natural
Gas Division. Thanked Commissioner Wendorff for his years of Service on
the Commission Board.
7. Policies
a. Review Policies
i. Section 3 of Exempt Handbook
ii. Section 3 of Non -Exempt Handbook
No changes recommended at this time.
8. Unfinished Business
9. New Business
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a. Award Contract for Hutchinson Substation 115kV and 69kV Circuit Breakers
Mr. Lang presented Awarding the Contract for Hutchinson Substation 115kV and
69kV Circuit Breakers. On March 13th, HUC had a Bid opening for the circuit
breakers. Three bids were received. After reviewing the bid proposals, Staff and
DGR Engineering are recommending awarding the bid to Border States for a total
contract price of $760,936.17. Border States would be furnishing circuit breakers
manufactured by Siemens.
Motion by Commissioner Hanson, second by Commissioner Cheney to Approve
Awarding the Contract for Hutchinson Substation 115kv and 69kV Circuit
Breakers as recommended. Motion carried unanimously.
b. Approve Req#009860 — Purchase of Cooling Tower Recirculating Pumps
Plant 1
GM Carter presented Approval of Req#009860- Purchase of Cooling Tower
Recirculating Pumps Plant 1. The current pumps running the cooling tower were
originally installed when Unit 3 and 4 were new back in 1968. The pumps are
wearing out and parts are no longer available or supported. Staff is
recommending replacing the pumps for a total of $52,460.72. HUC had budgeted
$60k.
Motion by Commissioner Wendorff, second by Commissioner Cheney to Approve
Req#009860 — Purchase of Cooling Tower Recirculating Pumps Plant 1. Motion
carried unanimously.
c. Approve Req#009861 — Renegade Professional Services Agreement
GM Carter presented Approval of Req#009861 — Renegade Professional
Services Agreement. Renegade Energy Advisors (REA) provided a proposal to
assist HUC and HCP in meeting annual Federal and State regulatory compliance
items. HUC and HCP are required annually to assess and delineate the HCA and
MCA areas and perform a class location assessment under the Federal
Department of Transportations Office of Pipeline and Hazardous Materials Safety
Administration (PHMSA). HUC has budgeted for the portion of costs associated
with HUC's transmission line. HCP will be responsible for the portion of costs in
order to stay in compliance with the transmission line they now currently own.
Motion by Commissioner Hanson, second by Commissioner Wendorff to Approve
Req#009861 — Renegade Professional Services Agreement. Motion carried
unanimously.
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d. LM6000 Update
GM Carter provided an LM6000 Update. There are 3 options available on the
LM6000. 11 Option; Staff is still waiting to hear the results of current midshaft on
NDT testing and possible recoating that is needed. If midshaft can be recoated
what possible concerns will there be. 2"d Option; if current midshaft is not an
option, there is an after market midshaft that can be purchased for an additional
cost and can be ready in about 8 weeks. 3rd Option; PA Engine Exchange.
Option 1 and 2 are running in parallel right now, Staff is waiting to hear more
information on the 2 options.
Discussion was held on engine exchange with air permitting, warranty, insurance,
costs up front, and what HUC would get for current engine.
Commission would like to know more about equipment coverage and Duty to
Warn.
Conversations were held on all 3 options and the future of the unit.
A few items for Staff to check into are 1) Is a Bid opening required for the PA
Engine 2) Staff to calculate a breakeven amount to have option 3 pay for itself
and 3) Insurance updates.
Ms. Radke will send an email about availability on having a Special Meeting.
10. Adjourn
There being no further business, a motion by Commissioner Wendorff, second by
Commissioner Cheney to adjourn the meeting at 4:09p.m. Motion carried
unanimously.
Kathy Sirernale, Secretary
ATTEST;
on Martinez, President
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