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10-30-2024 HUCMReg Wednesday, October 30, MINUTES Call to order — „1 p President Don Martinez called the meeting to order. Members present: President D Martinez; Vice President Matt Cheney; Secretary Kathy Silvernale; Commission Anthony Hanson; Commissioner Troy Pullis; GM Jeremy Carter; Attorney Marc Seboral ® Conflict of Interest 2. Approve Consent b. Ratify Payment of j ., Approve ApproveMotion by Commissioner Cheney, second by Commissioner Pullis to Consent Agenda. Motion carried unanimously. DivisionGM Carter presented the Financial Statements. Electric budgeteddecreased by $115k over September 2023; which included a $125k to the City of Hutchinson for the School Road sewer project that was Usagethe industrial and Commercial classes. GM Carter noted that r' l Gas GM Carter reviewed investments along with Cap Motion by Commissioner Silvernale, second by Commissioner Hanson to Approve the Financial Statements. Motion carried unanimously. ® Communication as City Administrator Matthew aunlc I. Nothing to report bo Divisions I. Dan Lang, Engineering Services Manager 1. Nothing to report Ii, Dave Huns a 9 Electric Transmission/Distribution Manager 1. GRE plans to upgrade the existing Transmission line, that runs from Hutchinson to Willmar, to 115KV, We will also plan to upgrade our Plant 1 substation to 11KV to align with this project. III. Mike Gabrielson, Production Manager m Unit 1 Update Iv, Jared Martig, Financial Manager- Absent c. Human Resources Angie a internal1. Will be having Natural Gas Meter Crew Chief interviews this week. All 2. Will be conducting interviews next week *, Natural r Manager position employees3. Finalizing 2025 Benefits. Looking to have an Open Enrollment meeting for d, 4. Reminder that the Commissioners will need to set a date and time for the General Manager annual review, which can be a separate date or in conjunction with the December regular Commission meeting. After discussion GM Carter and Commissioners agreed to have the review at the regular re -scheduled Commission Meeting on December 18, 2024 em General Manager — Jeremy Carter I. Working on budget and CIP iia NG Interviews iii® Working on CPl Data ivm Balifield Lightingis completee t ® Policies a. Review Policies I. Natural Gas Service Requirements & Charges ii® Temporary Service ® Natural Gas iii® Natural Gas Meter Requirements & Placement ivm Meter Testing — Natural va Natural Gas Service Work via Locating Customer's Underground Utilities® Natural b Approve Changes None E: 1 [ 7 r011VIT1=1 w GM Carter presented Approval of Natural Gas Com City of Brownton. HUC entered into an original Brownton to supply them natural gas that commenced on August 1, 2013. That *ite-tt uivs for -an original Qeriod of 9gears ending2022. As of approveto revised 5-year agreement Brownton to continue 9 includes 1) Contract Agreement); 2) Notification of contract continuance- Decreasing from 1 year to 3 months, and 3) Discussion of Future Operations: Decreases from 2 years to 6 months prior to the end of the contract. Motion by Commissioner Hanson, second by Commissioner Cheney to Approve Natural Gas Commodity Agreement with the City of Brownton. Motion carried Pill 1117i GM Caner presented Approval of Natural (gas Firm Transportation Capacity Agreement with the City of Brownton. Same type of changes as above with the Commodity Agreement, however this agreement also includes Transportation Charge Adjustment that moves from August 1 to November 1 Firm Transportation Capacity Agreement with the City of Brownton. Motion carried unanimously. GM Carter presented Approval of Brownton, Contract date has been updated to a 5-year term. Additional changes include increases to the monthly routine charge, hourly operator labor rate and non -routine work. d. Approve Contract for Hutchinson Substation Control Enclosure ElectricalMr. Lang presented Approval of Contract for Hutchinson Substation Control Enclosure. Last month the Commission approved to Award the Contract to oweructsnowStaff and DGR Engineering enclosure and relay panels to be installed at the Hutchinson Substation. recommending to enter into a purchase agreement with EP2 for a control w - rP Lang presented Approval of Req Rebuild —Amendmentr - The amendmentprovided by DGR Engineering outlines the responsibilities and associated costs for additional work required due to modifications encountered during tdesign M, cespecifically line and storm water improvements. Motion by Commissioner Silvernale, second by Commissioner Pullis to Approve Req#10057 Hutchinson Substation 11 5kV Rebuild Amendment #2. Motion carded After Mr. Gabrielson presented Approval of Awarding Contract for Control System Upgrade Wartsila Unit #5. Two bids were received at the bid opening on Oct 1 st. are recomme' awarding the contract to Wartsila for a total contract price of $513,000. Commissioner Motion by Commissioner Pullis, second by Awarding Contract to Wartsil1 for : #5. Motion carried unanimously. GIVI Carter discussion on free/renewable free/renewablepower supply mix along with providing some context between the old guidelines the new guidelines. Currently HUC is 34% Carbon Free. GM Carter provided 5 *ptions to discuss. Option#1 would meet the current MN 2040 Carbon Renewable Energy Standards with a cost of $68K to buy REC's for 25% of HUC's 'fit, The new guidelines also require the retirementon an legislativelyannual basis. Option #1 S Option #2 is currently the budgeted 2024 amount that +' Neutral under the previous guidelines. il Conversations were held on all 5 options, the cost if spread out during the years, past surveys from the community, and HUC's portfolio. Motion by Commissioner Hanson, second by Commissioner Pullis for Option #3 and include REC costs in Power Supply Cost. Motion carries on a 4-1 vote of the e Approve Setting a Special Budget Workshop meeting t 2 m an November 27, 224 Ms. Radke presented Approval of Setting a Special Budget Workshop Meeting at 2pm on November 27, 2024. Based on Commissioner feedback that was received Specialfrom the Commissioners, Staff would like to set a Budget Workshop Meeting at 2pm on November 27, 2024 before the regular scheduled Commission unanimously. Motion by Commissioner Pullis, second by Commissioner Cheney to Approve Setting a Special Budget Workshop meeting at 2pm on November 27, 2024. Motion carried i. Approve Rescheduling the December 25, 2024 Regular Commission Meeting to December 18, 2024. Ms. Radke presented Approval of Rescheduling the December 25, 2024 Regular Commission Meeting to December 18, 2024. Based on the feedback that was received from the Commissioners, Staff would like to reschedule the December 25, 2024 regular Commission Meeting to December 18, 2024 at 3pm. 91 RKNIToM lWlF �1;,.� X%Tjar uurnrrlM=I., Hanson s, Adjourn There being.r ,business, a motion by Commissioner nsecond by Commissioner Pullis to adjourn the meeting at ,,;, Motion i r vir.ale, Secretary ATTEST 'cirr kiiinez, President X,