04-24-2024 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, April 24, 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; Commissioner
Anthony Hanson; Commissioner Troy Pullis; GM Jeremy Carter; Attorney Marc Sebora;
Swearing in of Commissioner Troy Pullis
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 Financial Statements
Mr. Martig presented the Financial Statements. Electric Division consistent from last
year March 2023. Natural Gas Division Net Income increased by $611 k due to billing
Heartland Corn $752k for the interconnect station reimbursement. Customer
Revenues were down due to decreased usage in large part due to warmer weather.
GM Carter spoke of the market prices along with the Pipeline Imbalance. GM Carter
reviewed Investments.
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. City Projects to start next week
ii. Council has accepted bids for VMF ballfield on grandstand and
lighting. Should be completed by Nov 1 st
b. Divisions
i. Dan Lang, Engineering Services Manager — Absent
ii. Dave Hunstad, Electric Transmission/Distribution Manager —
1. Dan is down at Plant 1 working on relay project
2. Starting construction season
3. Provided Outage update
iii. Mike Gabrielson, Production Manager
1. Tuck Pointing to be completed in the next 2 weeks
2. Final Phase of Cooling tower will be completed next week
iv. Jared Martig, Financial Manager-
1. Account Coordinator position update
c. Human Resources — Angie Radke -
i. Working on Welder Service Person and Account Coordinator positions,
along with new Commissioner Troy Pullis
d. Legal — Marc Sebora —
i. Nothing to report
e. General Manager — Jeremy Carter
i. Legislative Update
ii. Working with Heartland Corn and Crew Chiefs on lateral pigging project that
needs to be completed
iii. Conference Call with BP discussing additional prepaid deal
6. Policies
a. Review Policies
i. Section 4 of Exempt Handbook
ii. Section 4 of Non -Exempt Handbook
No changes recommended at this time.
7. Unfinished Business
8. New Business
a. Approval of Highland Park Industrial, LLC Natural Gas Transportation and
Commodity Purchase Agreement
GM Carter presented Approval of Highland Park Industrial, LLC Natural Gas
Transportation and Commodity Purchase Agreement. This agreement was
originally the HTI/TDK agreement. Last month the agreement was updated to the
name change of Highland Park Industrial, LLC. This agreement provides
transportation and commodity purchasing rights to Highland Park Industrial, LLC
on Hutchinson Utilities' facilities for a 1-year term.
Motion by Commissioner Hanson, second by Commissioner Silvernale to
Approve Highland Park Industrial, LLC Natural Gas Transportation and
Commodity Purchase Agreement. Motion carried unanimously.
b. Review of 2023 Annual Benchmarking Report
Mr. Hunstad presented the 2023 Annual Benchmarking Report. The report focuses
on distribution system reliability across the country and is customized to each utility
that participates in the APPA eReliability Tracker service. Mr. Hunstad reviewed
K
the SAIDI, SAIR, and CAIDI Summary along with where HUC ranks to others in
the region.
Commissioners thanked and congratulated Staff for the hard work.
c. Approve Req#009876 — Vacuum Excavation Machine
Mr. Hunstad presented Approval of Req#009876 — Vacuum Excavation Machine.
HUC is due to replace the 2014 Vactron Vacuum Excavation Machine per the
fleet replacement schedule. Staff is recommending Ring-O-Matic 550 Jet Vac
Vacuum Excavation System from Trenchers Plus. The 550 Jet Vac is part of the
Minnesota State Cooperative Purchasing Contract for State and Local
Governments. 2024 Budget was $95k. Total cost of 550 Jet Vac will be
$73,784.87 after trade in, tax, license and registration.
Motion by Commissioner Cheney, second by Commissioner Hanson to Approve
Req#009876 — Vacuum Excavation Machine. Motion carried unanimously.
d. Approve Sale of Surplus Equipment
Mr. Hunstad presented Approval of Sale of Surplus Equipment. HUC is starting
to receive trucks and equipment that were ordered over the last two years and are
looking for approval to sell the surplus on GovDeals.com as the new trucks and
equipment arrive. Staff is also looking for approval to sell and or dispose of
obsolete materials from the Gas and Electric Division.
Motion by Commissioner Silvernale, second by Commissioner Cheney to
Approve Sale of Surplus Equipment. Motion carried unanimously.
e. LM6000 Update
GM Carter provided an LM6000 Update. GM Carter reviewed the 3 options that
were available at March's Commission meeting along with providing an update to
the 3 options. 1 st Option; using current midshaft that was going out for NDT
testing and possible recoating - update to this option is that NDT testing cannot
be completed because the midshaft needs to be polished, if the midshaft is
polished it will reduce the thickness of the splines on the midshaft making it
inoperable. 2nd Option; there is an aftermarket midshaft that can be purchased
for an additional cost and can be ready in about 8 weeks - update to this option is
that HUC will pay $650k for the aftermarket midshaft and go down the same path
as option 1. 3rd Option; PA Engine Exchange - update to this option is the
proposal is only good through April; however, Staff has not received the proposal
yet. Also, some of HUC's parts on the current engine are in better shape than the
3
new PA Engine and GE would like to use HUC's parts in the PA Engine
Exchange. There would be a 2-year warranty on this option.
Conversations were held on the 3 options along with the insurability of the options
and Duty to Warn.
Additional conversations will be held with Hartford Steam. Staff is looking to set
up a call to see if an inspection could be done soon to help make the decision
with the options that are available.
Ms. Radke will send an email about availability on having a Special Meeting in the
next 2 weeks. GM Carter will send out an updated Electric Production P&L.
9. Adjourn
There being no further business, a motion by Commissioner Cheney, second by
Commissioner Silvernale to adjourn the meeting at 3:55p.m. Motion carried
unanimously.
ATTEST:
Don Martinez, President
n
K thy SilVernale, Secretary