02-26-2025 HUCMMINUTES
Regular Meeting - Hutchinson Utilities Commission
Wednesday, February 26, 2025
Call to order - 3:00 p.m.
President Matt Cheney called the meeting to order. Members present: President Matt
Cheney; Vice President Troy Pullis; Secretary Don Martinez; GM Jeremy Carter; Attorney
Marc Sebora
Absent: Commissioner Kathy Silvernale and Commissioner Tom Lambert
Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Martinez, second by Commissioner Pullis to Approve the
Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
Mr. Martig presented the Financial Statements. Electric Division net loss decreased
by $210k over January 2024. Customer usage and revenues were up but offset by
lower market sales. Industrial class usage shows a reduction in kwhr's due to usage
being based on 32 days in 2025 versus 33 days in 2024. Overall Purchased Power
increased by approximately $75k, which is made up of MRES purchases increasing
by -$40k and market purchases/MISO costs increasing by -$35K.
GM Carter reviewed the Power Cost Adjustment and how it relates to the Rate
Stabilization fund. GM Carter spoke of the Cash Designation Reports and
Investments which are being kept short for now.
Motion by Commissioner Pullis, second by Commissioner Martinez to Approve the
Financial Statements. Motion carried unanimously.
4. Open Forum
5.
6. Communication
a. City Administrator - Matthew Jaunich -
i. Spring street projects
ii. New development mostly on housing side
b. Divisions
i. Dan Lang, Engineering Services Manager -
1. Update on McLeod Sub capacitor bank circuit breaker failure in
November. Sending remaining two breakers back to Siemens for
inspection, per their request.
ii. Dave Hunstad, Electric Transmission/Distribution Manager - Nothing to
report
iii. Mike Gabrielson, Production Manager — Nothing to report
iv. Jared Martig, Financial Manager-
1. Continuing to work on audit
c. Human Resources — Angie Radke -
i. Working on Natural Gas Manager position
d. Legal — Marc Sebora —
i. Nothing to report
e. General Manager — Jeremy Carter
i. Update on Prepaid deal
ii. Starting general conversations regarding New Ulm Contract
iii. APPA Public Power week is happening now in DC. One of the conversation
points is Tax -Exempt financing
iv. Working on a project related to Renewable Natural Gas.
v. Following House Filing 845
vi. Will be meeting with CEO of McLeod Coop along with Mr. Hunstad
tomorrow
7. 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. Hiring (Exempt and Non -Exempt)
ii. Probationary Period Upon Hiring (Exempt and Non -Exempt)
iii. Temporary Employees (Exempt and Non -Exempt)
iv. Promotions and Transfers (Exempt and Non -Exempt)
v. Complaint/Grievance Procedure (Non -Exempt)
vi. Discipline (Exempt and Non -Exempt)
vii. Conflict of Interest (Exempt and Non -Exempt)
viii. Other Employment (Exempt and Non -Exempt)
ix. License Requirements for Utility Vehicle Operation (Exempt and Non -
Exempt)
x. Violence in the Workplace (Exempt and Non -Exempt)
A. Offensive Behavior/Sexual Harassment (Exempt and Non -Exempt)
xii. Flowers (Exempt and Non -Exempt)
xiii. Petty Cash (Exempt and Non -Exempt)
Ms. Radke spoke of the policy changes. There are no substance changes to the
policies, all policies are still applicable. Changes are mostly to clean up
language.
Motion by Commissioner Pullis, second by Commissioner Martinez to Approve
Policy Changes. Motion carried unanimously.
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8. Unfinished Business
9. New Business
a. Approval of 3M Natural Gas Transportation and Daily Swing Supply
Agreement
GM Carter presented Approval of 3M's Natural Gas Transportation and Daily
Swing Supply Agreement. 3M's current agreement expires on March 1, 2025 at 9
A.M. This agreement provides transportation rights to 3M on Hutchinson's
facilities from March 1, 2025 at 9:00 A.M. through March 1, 2026 at 9:00 A.M.
This agreement is identical to the 2024 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 Martinez, second by Commissioner Pullis to Approve
3M Natural Gas Transportation and Daily Swing Supply Agreement. Motion
carried unanimously.
b. Approve Req#010128 —Generator Testing Units 5, 6, and 7
Mr. Gabrielson presented Approval of Req#010128 Generator Testing Units 5, 6,
and 7. Every 5 years it is required to complete testing on the generators to
ensure the generators are with manufacturing specs. The testing demonstrates
proper performance and safeguards the insurability and premium discounts for
maintaining HUC's fleet.
A motion by Commissioner Pullis, second by Commissioner Martinez to Approve
Req#010128 Generator Testing Units 5, 6, and 7. Motion carried unanimously.
c. Approve Req#010157 — Modifications to Side Stream Filter Plant 1 Installation
Mr. Gabrielson presented Approval of Req#010157 Modifications to Side Stream
Filter Plant 1 Installation. Attached is a change order to the 2024 CAPX Side
Stream Filter and Pump Replacement project at Plant 1. The change order is to
fix how the side stream filter pot is tied to the system. The reconfiguration will
enhance and ensure a more constant head PSI on the system to ensure it works
as designed.
A motion by Commissioner Pullis, second by Commissioner Martinez to Approve
Req#010157 Modifications to Side Stream Filter Plant 1 Installation. Motion
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carried unanimously.
d. Approve Hutchinson Substation Construction Contract
Mr. Lang presented Approval of Hutchinson Substation Construction Contract.
Staff and DGR Engineering are recommending to enter into a purchase
agreement with Hydaker-Wheatlake Co. for Hutchinson Substation construction
improvements for a contracted price of $6,931,556.12. Construction is scheduled
to start Spring 2025 through Fall of 2026.
Mr. Sebora has reviewed the contract.
A motion by Commissioner Martinez, second by Commissioner Pullis to Approve
Hutchinson Substation Construction Contract. Motion carried unanimously.
10. Adjourn
There being no further business, a motion by Commissioner Martinez, second by
Commissioner Pullis to adjourn the meeting at 3:27p.m. Motion carried unanimously.
Don Martinez, Secretary
ATTEST:LL-11111Q,
Matt Cheney, President
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