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HomeMy WebLinkAbout5-27-2026 HUCMMINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, May 27, 2026 Call to order — 3:00 p.m. President Don Martinez called the meeting to order. Members present: President Don Martinez; Secretary Matt Cheney; Vice President Tom Lambert; Commissioner Kathy Silvernale; GM Jeremy Carter; Attorney Marc Sebora Others Present: Mayer Gary Forcier, City Council Member Pat May 1. Conflict of Interest 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Lambert, second by Commissioner Cheney to Approve the Consent Agenda. Motion carried unanimously. 3. Approve Financial Statements Mr. Martig presented the Financial Statements. Electric Division Net Profit decreased by $198K over April 2025. Customer revenue and usage increased but total revenues were still down due to less generation sales. Transmission costs are higher and will continue to be all year. Natural Gas Division Net Income increased by $18k. Usage and revenues increased compared to April 2025. Increased revenue was offset by higher purchased gas and employee costs. Operating expenses were also higher due to backhoe repairs and sandblasting and painting stations. GM Carter highlighted the electric usage which is trending above relative to last year. GM Carter touched on the impact of the cold winter snap earlier in the year. Cost of Service Study update was provided. Balance sheet was also reviewed. Motion by Commissioner Cheney, second by Commissioner Silvernale to Approve the Financial Statements. Motion carried unanimously. 4. Open Forum Jeremy Lee, spoke of quality of life, cooling system and noise concerns. Jeremy stated it is important to ask questions, listen carefully and think long term. Brittany Eckstein, raised concerns of water health and the expansion of data centers in the community. Jeremy Lee asked if he could provide his questions in email form and get responses. GM Carter welcomed the questions and has also been responding to other residents' emails as he receives them. GM Carter stated that HUC has a vested interest in this community as well. GM Carter provided an update on the Data Center being an air-cooled system and not a glycol system. General discussion was also held about communication to the public President Martinez stated that once a construction plan has been put in place there are approvals that have to be made, followed and monitored, which also includes relying on the State and EPA to do their process as well. President Martinez and GM Carter also addressed the question of future scale and growth to what has been approved now. GM Carter discussed the infrastructure requirements and capacity for the community, and the local region and that proper review, coordination and planning has been done to ensure no capacity or transmission concerns would exist. In addition, this region has limited transmission capacity that would limit the size of data center growth. In addition, GM Carter discussed the characteristics of the new rate class. General discussion was held on other data centers and how it compares to the Data Center coming to Hutchinson. President Martinez thanked the people at the open forum for coming and discussing their concerns and asking questions. General discussion was also held on the use of fans and now possibly noise and air pollution. It was noted that all individuals can contact GM Carter with additional questions 5. Communication a. City Administrator— Matthew Jaunich — i. Construction season - Edmonton project could be completed by middle of June. ii. Provided update on demolition of Jurgenson Hotel b. Divisions i. Dan Lang, Engineering Services Manager — 1. Working on Plant 1 Transformer Agreement ii. Dave Hunstad, Electric Transmission/Distribution Manager - Absent iii. Mike Gabrielson, Production Manager 1. GE was on site 2 weeks ago to remove Unit 1 iv. Byron Bettenhausen, Natural Gas Manager - 1. Construction season 2. Interviews this week for open Welder/Service position 3. Just completed MNOPS 2025 Audit which went well. Thanked the Commission for supporting Staff on tasks that needed to be completed throughout the year. 2 4. CIS Survey on the next 20 miles of the transmission pipeline is starting today in St James v. Jared Martig, Financial Manager — Nothing to Report c. Human Resources — Angie Radke - i. Continuing to work on the Welder/Service Person open position ii. Continuing to work on Compensation Study d. Legal — Marc Sebora — i. Nothing to report e. General Manager — Jeremy Carter i. Finishing up contracts in the Natural Gas department. ii. MRES will be out next week for annual survey iii. Webinars coming up regarding Prepay 6. Policies a. Review Policies i. Section 5 of Exempt Handbook ii. Section 5 of Non -Exempt Handbook No changes recommended at this time. 7. Unfinished Business 8. New Business a. Approve Natural Gas Custody Transfer Agreement with 3M Mr. Bettenhausen presented Approval of Natural Gas Custody Transfer Agreement with 3M. HUC needs to put in place a Custody Transfer Agreement with 3M to delineate the custody transfer point of infrastructure by each party located at each meter set. The agreement ensures both parties acknowledge the responsibilities set forth for the ownership, maintenance, measuring and monitoring of the natural gas facilities. Motion by Commissioner Silvernale, second by Commissioner Cheney to Approve Natural Gas Custody Transfer Agreement with 3M. Motion carried unanimously. b. Approve Natural Gas Maintenance Agreement with City of Fairfax Mr. Bettenhausen presented Approval of Natural Gas Maintenance Agreement with the City of Fairfax. The maintenance agreement with the City of Fairfax has been updated to reflect the new contract terms as well as provide revisions to the routine work performed by HUC. 3 Motion by Commissioner Cheney, second by Commissioner Lambert to Approve Natural Gas Maintenance Agreement with City of Fairfax. Motion carried unanimously. c. Approve Amendment #2 to the Heartland Corn Reservation Agreement GM Carter presented Approval of Amendment #2 to the Heartland Corn Reservation Agreement. GM Carter reviewed the Firm Capacity Reservation Agreement that was entered into on December 20, 2023, along with the first amendment. At this time, Heartland Corn is requesting to convert an additional 1000 Dth's/day from the reservation agreement to the firm transportation agreement. Motion by Commissioner Silvernale, second by Commissioner Cheney to Approve Amendment #2 to the Heartland Corn Reservation Agreement. Motion carried unanimously. d. Approve Amendment #2 to the Heartland Corn Firm Transportation Agreement President Martinez stated this is the 2"d part of the Heartland Corn Agreements which is converting an additional 1000 Dth's/day from the Reservation Agreement to the Firm Transportation Agreement. Motion by Commissioner Cheney, second by Commissioner Lambert to Approve Amendment #2 to the Heartland Corn Firm Transportation Agreement. Motion carried unanimously. 9. Adjourn There being no further business, a motion by Commissioner Lambert, second by Commissioner Cheney to adjourn the meeting at 3:37p.m. Motion carried unanimously. 4altt Cheney, Secretary ATTEST:, Ig Don Martinez, Presid t 4