09-25-2024 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, September 25, 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
Troy Pullis; GM Jeremy Carter; Attorney Marc Sebora
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 Pullis to Approve the
Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
Mr. Martig presented the Financial Statements. Balance Sheet Electric Division cash
is down $2.6M which consists of $2.1 for the GE engine and $320K for the Altec
Digger Derrick. Mr. Martig reviewed the different Electric Division operating
expenses that pertained to the $60K increase. Mr. Martig also stated the PCA was
over recorded but this will be made up next month, MRES had a change in billing.
GM Carter reviewed consumption year over year along with investment earnings.
Motion by Commissioner Hanson, second by Commissioner Cheney to Approve the
Financial Statements. Motion carried unanimously.
4. Open Forum
5. Communication
a. City Administrator— Matthew Jaunich —
i. Street projects are completed
ii. VMF lighting project is completed
iii. Potential housing developments coming to town
b. Divisions
i. Dan Lang, Engineering Services Manager —
1. Nothing to report
ii. Dave Hunstad, Electric Transmission/Distribution Manager —
1. Nothing to report
iii. Mike Gabrielson, Production Manager —
1. Unit 1 Update
iv. Jared Martig, Financial Manager-
1. Computer Analysist retired
c. Human Resources — Angie Radke -
i. Natural Gas Division Manager position was posted a few weeks ago
ii. Natural Gas Division Crew Chief internal position has been posted
d. Legal — Marc Sebora — Nothing to report
e. General Manager — Jeremy Carter
i. Finalized 3M volumes and pricing for years 2025 and 2026
ii. MNOPS Audits have been finalized and all compliance reports have been
received.
iii. TVC gap analysis with Renegade will be discussed in New Business
iv. Updating 4 Brownton contracts, which will be in place for 5 years
v. Meeting with Senator Gruenhagen and Representative Gillman on Oct 2nd
regarding upcoming legislative format and topics in the energy industry
vi. Bright Energy Choices Program update
vii. Hutchinson high school electricity class came last week to have a tour of
the Production facility
viii. Received some competitive capacity pricing
ix. Working on 2025 Cap X and operating Budget
6. Policies
a. Review Policies
i. Electric Service Requirements and Changes
ii. Temporary Service
iii. Temporary Service in Case of Underground Failure
iv. Electric Meter Placement
v. Sealing of Meters
vi. Meter Testing
vii. Right -of -Way Clearing
viii. Tree Removal or Trimming
ix. Locating Customers' Underground Utilities
No changes recommended at this time.
b. Approve Changes
i. Security Light Rental — Rate to Furnish and Maintain Fixture
ii. Rate Schedule — Electric
iii. Rate Schedule — Natural Gas
Ms. Radke spoke of the policy changes to match what was approved by the
City Council and Commission in 2023.
Motion by Commissioner Pullis, second by Commissioner Hanson to Approve
Policy Changes. Motion carried unanimously.
7. Unfinished Business
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a. Approve Amendment #1 to the Heartland Corn Operating Agreement
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GM Carter presented Approval of Amendment #1 to the Heartland Corn
Operating Agreement. HUC entered into an O&M agreement with Heartland Corn
Products (HCP) November 2023 to maintain and operate a new transmission
facility that started flowing gas in January 2024. Since that time, a distribution line
(farm tap) owned by HCP has been added to transmission line. HCP is asking
HUC to maintain and operate that distribution facility currently in place on a time
and materials basis. Amendment #1 adds the distribution facility to the
Transmission Facility O&M agreement.
Motion by Commissioner Cheney, second by Commissioner Hanson to Approve
Amendment #1 to the Heartland Corn Operating Agreement. Motion carried
unanimously.
b. Award Contract for Hutchinson Substation Voltage Transformers to Border
States
Mr. Lang presented Approval of Awarding Contract for Hutchinson Substation
Voltage Transformers to Border States. Five bids were received at the bid
opening on August 14th. After reviewing the bids, Staff and DGR Engineering are
recommending awarding the contract to Border States for a total contract price of
$114,991.32.
Motion by Commissioner Hanson, second by Commissioner Pullis to Award
Contract for Hutchinson Substation Voltage Transformers to Border States.
Motion carried unanimously.
c. Award Contract for Hutchinson Substation Potential Transformers to Border
States
Mr. Lang presented Approval of Awarding Contract for Hutchinson Substation
Potential Transformers to Border States. Five bids were received at the bid
opening on August 14th. After reviewing the bids, Staff and DGR Engineering is
recommending awarding the contract to Border States for a total contract price of
$95,197.52.
Motion by Commissioner Pullis, second by Commissioner Cheney to Award
Contract for Hutchinson Substation Potential Transformers to Border States.
Motion carried unanimously.
d. Award Contract for Hutchinson Substation Control Enclosure
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Mr. Lang presented Approval of Awarding Contract for Hutchinson Substation
Control Enclosure. One bid which was expected because of the specialized
product was received at the bid opening on September 1 1th. After reviewing the
bid, Staff and DGR Engineering are recommending awarding the contract to
Electrical Power Products for a total contract price of $1,550,035.00. Price did
come in as expected.
Motion by Commissioner Hanson, second by Commissioner Pullis to Award
Contract for Hutchinson Substation Control Enclosure and Relay Panels to
Electrical Power Products. Motion carried unanimously.
e. Approve Contract for Hutchinson Substation 11 5kV and 69kV Group Operated
Switches to SEECO
Mr. Lang presented Approval of Contract for Hutchinson Substation 11 5kV and
69kV Group Operated Switches to SEECO. Last month the Commission
approved to Award the Contract to SEECO, now Staff and DGR Engineering are
recommending to enter into a purchase agreement with SEECO for 11 5kV and
69kV group operated switches to be installed at the Hutchinson Substation for a
contracted price of $456,476.04.
Motion by Commissioner Cheney, second by Commissioner Pullis to Approve
Contract for Hutchinson Substation 11 5kV and 69kV Group Operated Switches to
SEECO. Motion carried unanimously.
f. Approve Contract for Hutchinson Substation Steel Materials to Galvanizers
Mr. Lang presented Approval of Contract for Hutchinson Substation Steel
Materials to Galvanizers. Last month the Commission approved to Award the
Contract to Galvanizers, now Staff and DGR Engineering are recommending to
enter into a purchase agreement with Galvanizers for steel and steel poles to be
installed at the Hutchinson Substation for a contracted price of $667,137.02.
Motion by Commissioner Hanson, second by Commissioner Cheney to Approve
Contract for Hutchinson Substation Steel Materials to Galvanizers. Motion carried
unanimously.
g. Approve Req#1 0011 — HTI Substation Relays
Mr. Lang presented Approval of Req#1 0011 HTI Substation Relays. Staff is
looking to replace aging and unsupported equipment. Upgrade is part of 2024
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capital improvement project.
Motion by Commissioner Pullis, second by Commissioner Cheney to Approve
Req#1 00 11 to Pro -Tech Power Sales for the purchase of Schweitzer relays for
the HTI Substation. Motion carried unanimously.
h. Approve Req#01 0031 — Side Stream Filter and Pump Replacement Plant 1
Mr. Gabrielson presented Approval of Req#0110031 Side Stream Filter and Pump
Replacement Plant 1. Staff purchased Tower water pumps back in June to
replace the old Allis Chalmers pumps. Pioneer Power will demo the old pumps
and bases and install new bases along with the pumps purchased in June.
Pioneer Power will also provide a side stream filter assembly to help with
removing contaminates from the cooling tower water before flowing into the plate
coolers for units 5, 6 and 7. Pioneer Power will complete all fabrication work to
the piping to ensure appropriate hook ups. HUC Staff will complete electrical
work to hook up the new tower water pumps. Filter and pumps are part of the
2024 capital improvement project.
Motion by Commissioner Cheney, second by Commissioner Pullis to Approve
Req#0100311 Side Stream Filter and Pump Replacement Plant 1. Motion carried
unanimously.
L Approve Req#01 0033 — Renegade Professional Services
GM Carter presented Approval of Req#010033 Renegade Professional Services.
Renegade Energy Advisors (REA) has been providing Staff with outside
consulting services to assist HUC 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). In addition, REA has been working on
HLIC's manuals and programs to stay in compliance with the changing
regulations.
HUC is now required under PHMSA to perform a Traceable, Verifiable, &
Complete (TVC) Gap Analysis on the transmission line to ensure proper
documentation and record keeping to substantiate HUC is in compliance with the
Maximum Annual Operating Pressure (MAOP) of the system related to HCA,
MCA, and Class 3 & 4 segments of the transmission line. It is also anticipated
starting in 2025 Distribution facilities will be required to provide the same GAP
analysis related to many of the transmission line requirements to ensure HUC as
an operator is operating the system safely and not over pressurizing the system.
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REA has provided a proposal to assist HUC in meeting these upcoming
requirements. HUC has budgeted for the portion of costs associated with HUC's
transmission and distribution line. HCP and Brownton will be responsible for their
portion of the costs in order to stay in compliance with the current or anticipated
requirements going into effect in 2025.
Motion by Commissioner Pullis, second by Commissioner Cheney to Approve
Req#010033 Renegade Professional Services. Motion carried unanimously
9. Adjourn
There being no further business, a motion by Commissioner Cheney, second by
Commissioner Hanson to adjourn the meeting at 3:43p.m. Motion carried
unanimously.
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y�ki/ Kath'er6hale, Secretary
ATTEST:
At i '—D-on Martinez, President nr
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