01-25-2017 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, January 25, 2017
Call to order — 3:00 p.m.
Vice President Morrow called the meeting to order. Members present: Vice President
Monty Morrow; Secretary Mark Girard; Commissioner Anthony Hanson; Commissioner
Robert Wendorff; Attorney Marc Sebora; General Manager Jeremy Carter.
Conflict of Interest
Commissioner Hanson declared a conflict of interest in voting on agenda item 4f,
Designate Depositories for Utility Funds, as he is an employee of Citizens Bank &
Trust. Secretary Girard also declared a conflict of interest in voting on agenda item
4f, as he is a director for Citizens Bank & Trust.
2. Swearing in of New Commissioner — Don Martinez
Attorney Sebora swore in the newly elected commissioner, Don Martinez.
3. Re -Appoint Commissioners Monty Morrow and Mark Girard
Attorney Sebora re -appointed Monty Morrow and Mark Girard to the Hutchinson
Utilities Commission Board.
4. Commission Reorganization
Vice President Morrow called for the annual Commission reorganization.
a. A motion was made by Commissioner Hanson, seconded by Secretary Girard
to elect Monty Morrow to the position of president. Motion was unanimously
carried.
b. A motion was made by Commissioner Wendorff, seconded by Vice President
Morrow to elect Anthony Hanson to the position of vice president. Motion was
unanimously carried.
c. A motion was made by Commissioner Wendorff, seconded by Commissioner
Hanson to appoint Mark Girard as secretary. Motion was unanimously carried.
d. A motion was made by Commissioner Hanson, seconded by Secretary Girard
to appoint Marc Sebora as legal counsel. Motion was unanimously carried.
e. A motion was made by Commissioner Hanson, seconded by Vice President
Morrow to appoint Kim Koski as recording secretary. Motion was unanimously
carried.
f. A motion was made by Commissioner Wendorff, seconded by Commissioner
Martinez, to designate Citizens Bank & Trust, Wells Fargo Bank, Wells Fargo
Advisors, Home State Bank, Morgan Stanley and Cetera Investment Services
as depositories for utility funds. Motion was unanimously carried.
5. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
A motion was made by Commissioner Hanson, seconded by Commissioner
Wendorff to approve the Consent Agenda. Motion was unanimously carried.
6. Approve Financial Statements
Jared Martig presented the financial statements. GM Carter mentioned the net
income was 6% better than in the last few years. HUC is anticipating higher power
cost adjustments in 2017.
After discussion, a motion was made by Secretary Girard, seconded by
Commissioner Hanson to approve the financial statements. Motion was
unanimously carried.
7. Open Forum
8. Communication
a. City Administrator — Matthew Jaunich
i. Receiving bids for the 2017 School Road and Roberts Road projects.
ii. Working with potential developer for the proposed hotel at
Highways 7 and 15.
iii. The recreation center lobby and locker area are updated.
b. Divisions
i. Randy Blake —
1. Air permit for the LM6000 engine at Plant 2 is due in 2017.
2. MPCA is changing emissions reporting format from fiscal quarterly to
hourly.
3. Inspections went well from the new insurance company covering the
boiler machinery.
4. Working to finish a couple 2016 capital projects.
5. Training in the new operator at Plant 1.
ii. Dan Lang —
1. Nothing to report.
iii. Dave Hunstad —
1. There was an outage last Saturday on the east part of town. There were
7 outages in 2016. Next month, will discuss the outages for 2016, how
underground wire is replaced and RUC's plan on where we will be
replacing conductor moving forward.
iv. Jared Martig -
1. Auditors will be here next week.
2. BS&A will be onsite to work
February 9.
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on the software February 7 through
v. John Webster -
1 . HUC made some money from parking natural gas on the pipeline for a
gas marketer earlier this month.
2. Comparing 2015 to 2016 natural gas annual lost and unaccounted for.
There was a 0.62% loss in 2015, with the loss going down to .53% in
2016 which resulted in a 141/2% decrease in lost and unaccounted
natural gas.
vi. Brenda Ewing —
1. Nothing to report.
c. Legal — Attorney Sebora
i. Nothing to report.
d. General Manager — Jeremy Carter
i. Attending a couple webinars coming up on mission critical infrastructure.
ii. The next Power Plan stakeholders' meeting is on February 24.
iii. Items for discussion and presentation in the next couple months are:
reliability reporting, follow up to HUC's capital improvement and fleet
planning, HUC's renewable solar garden philosophy, and a review of the
wholesale generation model.
9. Policies
a. Review Policies
i. Identity Theft — Red Flag Program
ii. Minnesota Government Data Practices Act & Public Records Request
iii. Administration of Personnel Policies & Procedures
iv. Savings Clause
v. Equal Employment Opportunity
No changes were recommended at this time.
b. Approve Changes - None
10. Unfinished Business
a. Update on Pack Gas Discussions
GM Carter is waiting to hear from New Ulm's attorney regarding the direction to
go from here.
11. New Business
a. Approve Requisition 7001 for a Vacuum Excavation Machine
Dave Hunstad presented Requisition 7001 for a Vacuum Excavation Machine
in the amount of $40,467.15 for Trenchers Plus. A motion was made by
Commissioner Hanson, seconded by Secretary Girard to approve Requisition
7001 for a Vacuum Excavation Machine. Motion was unanimously carried.
(Requisition 7001 attached.)
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b. Approve Requisition 7002 for a Tractor Loader Backhoe
Dave Hunstad presented Requisition 7002 for a Tractor Loader Backhoe in the
amount $61,827.19 for Lano Equipment Inc. A motion was made by
Commissioner Wendorff, seconded by Commissioner Martinez to approve
Requisition 7002 for a Tractor Loader Backhoe. Motion was unanimously
carried. (Requisition 7002 attached.)
c. Consideration and Approval of the 2017 Pay Equity Report
Brenda Ewing presented the 2017 Pay Equity Report for approval. The report is
a requirement of the State and is due every three years. The purpose of the
report is to make sure HUC meets State requirements on female job classes
versus male job classes. HUC is using the Springsted system which is a State
approved system. HUC is in compliance.
A motion was made by Commissioner Hanson, seconded by Secretary Girard
to approve the 2017 Pay Equity Report. Motion was unanimously carried. (2017
Pay Equity Report attached.)
d. Approve 3M CIP Rebate
Jared Martig presented the 3M CIP Rebate for $54,550.13. A motion was made
by Secretary Girard, seconded by Commissioner Hanson to approve the 3M
CIP Rebate. Motion was unanimously carried. (Rebate analysis attached.)
12. Adjourn
There being no further business, a motion was made by Commissioner Hanson,
seconded by Commissioner Wendorff to adjourn the meeting at 3:47 p.m. Motion
was unanimously carried.
ATTEST• S.
Monty M row, President
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110,411 "'Li
M k Girard, Secretary