04-30-2025 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, April 30, 2025
Call to order — 3:00 p.m.
President Matt Cheney called the meeting to order. Members present: President Matt
Cheney; Commissioner Kathy Silvernale; Commissioner Tom Lambert; GM Jeremy
Carter; Attorney Marc Sebora:
Absent: Secretary Don Martinez; Vice President Troy Pullis
1. Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Lambert, second by Commissioner Silvernale to Approve
the Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
Mr. Martig presented the Financial Statements. Electric Division Generator fuels
were up in large part due to generators running in order to do RATA testing, which
also increased operating expenses. Natural Gas Division March net income
decreased due to HCP reimbursement of the interconnect station last year.
GM Carter reviewed the Electric and Natural Gas Divisions, both divisions are
trending at or above last year.
Motion by Commissioner Lambert, second by Commissioner Silvernale to Approve
the Financial Statements. Motion carried unanimously.
4. Open Forum
5. Communication
a. City Administrator— Matthew Jaunich —Absent
b. Divisions
i. Dan Lang, Engineering Services Manager —
1. Provided a Hutch Sub update.
2. Willmar line west through town with GRE, still on pace. Open
Houses are being planned. Will keep the Commission up to date
on when those will be held.
ii. Dave Hunstad, Electric Transmission/Distribution Manager — Nothing to
report
iii. Mike Gabrielson, Production Manager —
1. Provided update on Generator Testing at Plant 1.
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2. Stack Testing on Unit 5 last month did not pass. Staff is currently not
running Unit 5. Everything does function as it should but staff will be
running a retest in June.
iv. Jared Martig, Financial Manager- Nothing to report
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. Business Update sent out — please review
ii. Working through Draft Contracts with prospective customer
iii. Working on preliminary draft contract with New Ulm
iv. Tolling Agreement, Natural Gas Supply Prepaid Deal Update
6. Policies
a. Review Policies
i. Section 4 of Exempt Handbook
ii. Section 4 of Non -Exempt Handbook
No changes recommended at this time
b. Approve Changes
i. Compensation Plan (Exempt and Non -Exempt)
ii. Travel Expenses (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 to remove the word Director
from policies.
Motion by Commissioner Silvernale, second by Commissioner Lambert to
Approve Policy Changes. Motion carried unanimously.
7. Unfinished Business
8. New Business
a. Review of 2024 Annual Benchmarking Report
Mr. Hunstad presented the 2024 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
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the SAIDI, SAIFI, and CAIDI Summary along with where HUC ranks to others in
the region.
Commissioners thanked and congratulated Staff for the hard work.
b. Review of 2024 Safety Award of Excellence
Mr. Hunstad presented the 2024 Safety Award of Excellence. HUC has earned
the Diamond designation of the American Public Power Association Safety Award
of Excellence for safe operating practices in 2024.
c. Approve Req#010216 — Renegade Professional Services
GM Carter presented Approval of Req#010216 — Renegade Professional
Services. Renegade Energy Advisors (REA) has provided a proposal to assist
HUC and HCP in meeting annual Federal and State regulatory compliance items
for 2025. Annually under the purview of the Federal Department of
Transportations Office of Pipeline and Hazardous Materials Safety Administration,
HUC and HCP are required to assess and delineate the High and Moderate
Consequence Areas, perform a class location assessment, and update imagery
on an annual basis. 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 Lambert, second by Commissioner Silvernale to Approve
the Req#010216 — Renegade Professional Services. Motion carried unanimously.
d. Approval of City of Fairfax Natural Gas Facilities Maintenance Agreement
GM Carter presented Approval of City of Fairfax Natural Gas Facilities
Maintenance Agreement. The City of Fairfax has requested HUC to continue to
perform the maintenance on the natural gas transmission/distribution interconnect
and the line control facilities serving all customers to the East on Highway 19 and
the Cities of Fairfax and Gibbon effective April 1, 2025. The agreement is identical
to the 2024 agreement except for date changes and exhibit C moving to 15% to
match all other contracts.
Motion by Commissioner Lambert, second by Commissioner Silvernale to Approve
City of Fairfax Natural Gas Facilities Maintenance Agreement. Motion carried
unanimously.
e. Approval of Highland Park Industrial, LLC Natural Gas Transportation and
Commodity Purchase Agreement
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GM Carter presented Approval of Highland Park Industrial, LLC Natural Gas
Transportation and Commodity Purchase Agreement. Highland Park Industrial
LLC's current agreement expires on May 1, 2025 at 9 A.M. This agreement
provides transportation rights to Highland Park Industrial, LLC on Hutchinson's
facilities from May 1, 2025 at 9:00 A.M. through May 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 Silvernale, second by Commissioner Lambert to Approve
Highland Park Industrial, LLC Natural Gas Transportation and Commodity Purchase
Agreement. Motion carried unanimously.
Approve Req#010227 - School Road Bridge Project
GM Carter presented Approval of Req#010227— School Road Bridge Project.
Staff has received exhibit documents from SEH and is now currently working with
an engineering firm to initiate the application with the DNR to bore under the river
bottom a new main that will be reconnected to the distribution system on the
south side of school road bridge. Anticipated timeline will be this fall/winter which
is dependent on material lead times, permitting, and a boring company to do the
work.
Motion by Commissioner Silvernale, second by Commissioner Lambert to Approve
the Req#010227 — School Road Bridge Project. Motion carried unanimously.
g. Approve Req#010225 Phase 3 Tuck Pointing with Additional Brick Repair —
Plant 1
Mr. Gabrielson presented Approval of Req#010225 Phase 3 Tuck Pointing with
additional Brick Repair — Plant 1. Phase 3 is the final phase of the tuck pointing
project which is addressing the precast building on the east side of the plant. The
original 3rd phase of the project was a CAPX 2025 project. Since removing units 3
and 4 exhaust stacks, the brick that was behind those units is in poor condition
and needs to be repaired/replaced. The addition work was not part of the CAPX
for 2025.
Motion by Commissioner Lambert, second by Commissioner Silvernale to Approve
the Req#010225 Phase 3 Tuck Pointing with Additional Brick Repair — Plant 1.
Motion carried unanimously.
h. Set a Special Meeting for Cash Flow Projection Discussion
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GM Carter would like to table this discussion until all commissioners are present
to set a date. Another date to set is a joint meeting with City Council and EDA.
Commissioners will send availability to Ms. Radke along with topics the
Commission would like to add to the agenda.
9. Adjourn
There being no further business, a motion by Commissioner Silvernale, second by
Commissioner Lambert to adjourn the meeting at 3:35p.m. Motion carried
unanimously.
ATTEST.,
Matt Cheney, Preside
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`ikon Martinez, Secretary