05-27-2015 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, May 27, 2015
Call to order — 3:00 p.m.
President Hanson called the meeting to order. Members present: President Anthony
Hanson; Vice President Donna Luhring; Secretary Mark Girard; Commissioner Monty
Morrow; Attorney Marc Sebora; General Manager Jeremy Carter.
Members absent: Commissioner Dwight Bordson
Guests: City of Lafayette — Norman Langhoff, City Council Member and Al Fox,
Superintendent of Utilities
Approve Minutes of April 29, 2015
The minutes of the April 29, 2015 regular meeting were reviewed. GM Carter noted
to delete Commissioner Monty Morrow from the "Call to order" list as he was
absent. A motion was made by Vice President Luhring, seconded by Secretary
Girard to approve the minutes of the April 29, 2015 regular meeting with the
amended change. Motion was unanimously carried. (Changes attached.)
President Hanson welcomed Norman Langhoff and Al Fox from the City of Lafayette,
who were present to request the Commission consider HUC provide natural gas
services to the City of Lafayette.
The City of Lafayette has approximately 200 residential and 34 commercial customers.
Norman commented partnering with HUC would be the best fit for the City of Lafayette.
He also mentioned the City of Klossner may be interested too.
John Webster explained there are three options available to the City of Lafayette to
receive natural gas:
1) The City of Lafayette would form a municipal natural gas utility, HUC
would transport, sell commodity, operate and maintain the system for
them. The City of Lafayette would pay to build the system.
2) Greater Minnesota Gas would pipe the entire city, tap into HUC's pipeline
to receive natural gas and transport at their expense to serve the
residents. With this option, the customer would likely be billed a surcharge
to pay for the system. Greater Minnesota Gas would like to put a hot tap
on HUC's pipeline south of the current block valve site to be able to serve
the countryside and the community of Klossner.
3) HUC would expand HUC's natural gas distribution system into the City of
Lafayette. HUC would own, operate and maintain the system. Customers
would be billed on HUC's rate schedule.
After discussion, John Webster recommended HUC consider supplying natural gas to
the City of Lafayette as it could be valuable revenue in the grain drying seasons with the
City of Klossner being interested.
2. Ratify Payment of Bills for April 2015
The April 2015 payables were discussed. After discussion, a motion was made by
Commissioner Morrow, seconded by Secretary Girard to ratify the payment of bills
in the amount of $2,193,027.31 (detailed listing in payables book). Motion was
unanimously carried.
3. Approve Financial Statements/Budget Year to Date
GM Carter presented the April 2015 financial statements/budget year-to-date.
After discussion, a motion was made by Secretary Girard, seconded by Vice
President Luhring to approve the financial statements/budget year-to-date. Motion
was unanimously carried.
President Hanson inquired when the 2015 budget revision would be presented to
the Board. GM Carter responded it would be presented at the June or July regular
commission meeting.
4. Review Policies
GM Carter presented the policies, sections:
• Meter Testing
• Natural Gas Service Work
• Locating Customer's Underground Utilities
• Employee Handbooks — License Requirements for Utility Vehicle Operation
• Employee Handbooks — Smoking
• Employee Handbooks — Alcohol or Drugs
No changes were recommended.
5. Approve Requisition #6322 for Hoist/Trolley Controls for the Crane in the
West Engine Room
Randy Blake presented the requisition #6322 explaining he is recommending
approval as replacement parts are non-existent and there are also safety concerns
with the current configuration. Randy received four quotes for the project.
After discussion, a motion was made by Secretary Girard, seconded by
Commissioner Morrow to approve Requisition #6322 for Hoist/Trolley Controls for
the Crane in the West Engine Room for $26,326.00. Motion was unanimously
carried. (Requisition attached.)
6. Review of the Horizontal Drilling Machine
Dave Hunstad presented information on how the horizontal drill performed in 2014,
explaining the payback for the machine was reduced from 4.85 years to 2.99
years.
7. Discuss Commissioner Matrix
President Hanson explained Commissioner Bordson's term expires at the end of
December 2015. HUC needs to start the succession planning process for his
vacant position. The Commissioners have filled out a matrix to help in making
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recommendations and to decide what required skill sets are needed. After these
are compiled they will be presented to Mayor Forcier for consideration.
8. Discuss Board Action Form, Financial Statement Presentation, and Agenda
Format
GM Carter presented the board action form, financial statement presentation and
new agenda format which have been created to assist in the future communication
and process flow for the commission meeting packets. GM Carter sought feedback
from the Commissioners on these documents.
The Board commended GM Carter on the style of the financial statement
presentation and decided all formats should be used starting with the June regular
commission meeting packet.
9. Approve Language for Minnesota State Retirement System (MSRS)
a. Memorandum of Agreement between HUC and IBEW Local 949
b. Amendment to HUC's Exempt Employee Handbook to Authorize a Health Care
Savings Plan (HCSP) with the Minnesota State Retirement System (MSRS)
Brenda Ewing presented a memorandum of understanding for the HUC Union
employees and an amendment to HUC's employee handbook for exempt
employees explaining they lay out what monies would be going into the healthcare
savings plans both on a tax free basis when used for eligible medical expenses.
The memorandum between HUC and IBEW Local 949 has been reviewed by the
Union counsel. There is no cost to HUC to implement these plans. They will also
be available for employees not only for the retiree incentive but other employees
which retire in the future. If there is an incentive offered in the future, this plan
would still be in place.
After Board approval, both documents will be submitted to MSRS for their
approval.
After discussion, a motion was made by Vice President Luhring, seconded by
Secretary Girard to approve the language for Minnesota State Retirement System
(MSRS). Motion was unanimously carried. (Memorandum and Amendment
attached.)
10. Communication from the City Administrator
City Administrator Jaunich reported:
• City Council approved the first phase of an outdoor waterpark.
• City Council approved a conditional use permit for an apartment complex
across from the Century 9 movie theater.
11. Division Reports
GM Carter
• Federal Level Update — tentatively, the EPA ruling will take place mid -summer
and the State plan by summer of 2016.
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• State Level Update — the Governor vetoed the major jobs and energy bill.
• Three HUC employees accepted the early retirement incentive package. One
position may be filled internally and the other two positions will not be
backfilled as HUC will adjust operationally.
Electric — Dan Lang
Nothing to report
Electric — Randy Blake
• There will be a couple of roofing projects coming up.
• Working on a ventilation project for Unit 8 boiler area.
Electric — Dave Hunstad
• Working on Golf Course Road project.
Natural Gas — John Webster
• Tying in two pieces of main behind the golf course so the main feeds can be
shut down for the Heritage Road addition.
• Working with a major customer today who is looking at buying long-term gas
supply at a fixed price. Will continue to work with them over the next couple
months.
• As part of the early retirement, a crew chief position will be vacant which has
been posted internally.
• There were 63 customer letters sent out to solicit those interested in natural
gas service in the Bernhagen area. HUC has had 12 positive responses so
far.
Finance — Jared Martig
• Working with customer service with the replacement of Infinity.Link which is
the interface used for online customer bill pay on HUC's web site.
12. Legal Update
The City Council approved the grant agreement with Xcel Energy for the solar
project at the wastewater plant. This requires an interconnect agreement between
HUC and the City of Hutchinson which will be up for consideration at next month's
regular meeting.
Unfinished Business
None
New Business
GM Carter mentioned the strategic planning meeting will take place sometime in
late August or September.
President Hanson mentioned GM Carter's 12 -month review will be scheduled at
the June's regular meeting.
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There being no further business, a motion was made by Commissioner Morrow,
seconded by Secretary Girard to adjourn the meeting at 4:22 p.m. Motion was
unanimously carried.
ATTEST. &4vm']�. -�- L
Anthony Ha son, President
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Mark Girard, Secretary