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04-27-2017 CCM HUC-COUNCIL JOINT MTGHUTCHINSON CITY COUNCIL JOINT WORKSHOP WITH THE HUTCHINSON UTILITIES BOARD MEETING MINUTES THURSDAY, APRIL 27, 2017 AT 7:30 AM CITY CENTER — COUNCIL CHAMBERS 1. Call to Order Mayor Forcier called the meeting to order at 7:30 a.m. Members present were: Council Member Mary Christensen, Council Member Steve Cook, Council Member Chad Czmowski, Council Member John Lofdahl, Commissioner Mark Girard, Commissioner Don Martinez; Commissioner Anthony Hanson; Commissioner Monty Morrow; Commissioner Bob Wendorf£ Staff present were: Matt Jaunich, Kent Exner, John Paulson, Jeremy Carter, Jared Martig, Steve Blake, Dave Hunstad, and Dan Lang. 2. Welcome/Introductions The group introduced themselves to each other. 3. State of the City Report Matt Jaunich, City Administrator, presented before the group. Mr. Jaunich provided a State of the City report to the group. Items covered included work force data, rental/housing data, new developments, current projects and business attraction initiatives. 4. State of the HUC Report a. Financial Position b. Policies Enacted c. Staffing, energy contracts, capacity contracts, gas contracts, etc. d. Industry/Expense Changes Jeremy Carter, HUC General Manager, presented before the group. Mr. Carter provided an update on HUC's financial position, enacted policies, operational changes and industry changes and cost drivers. 5. HUC Business Model Compared to other Municipal Utilities Mr. Carter reviewed HUC's business model compared to other municipal utilities. 6. Overview of Potential Projects a. Units 6 & 7 b. Solar Generation/Community Solar Garden Mr. Carter reviewed potential projects at HUC. These include installation of Generator Units 6 & 7 (9 -IO MW's/unit). HUC will finance the project through tax-exempt financing and cash balance, enter into a capacity contract with municipal buyer and HUC can use the energy at its discretion. Solar Generation/Community Solar Garden — Residential -based solar gardens — Council/HUC interested? Three business models considered: HUC finances project; Residents subscribe to panels; HUC finances some, residents finance some 7. HUC Cost of Service Study a. PILOT Payment RFP just went out for cost of service study which will help define the PILOT payment. 8. Any Additional Joint Partnerships? No discussion 9. Anything Else? No discussion 10. Adjournment (by 8:50 a.m.) Adjourned at 8:55 a.m. ATTEST: Gary T. Forcier Matthew Jaunich Mayor City Administrator