03-01-2017 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, March 1, 2017
Call to order — 3:00 p.m.
President Monty Morrow called the meeting to order. Members present: President
Monty Morrow; Vice President Anthony Hanson; Secretary Mark Girard; Commissioner
Don Martinez; Attorney Marc Sebora; General Manager Jeremy Carter.
Absent: Commissioner Robert Wendorff
Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
A motion was made by Vice President Hanson, seconded by Secretary Girard to
approve the Consent Agenda. Motion was unanimously carried.
3. Approve Financial Statements
Jared Martig presented the financial statements. GM Carter noted two corrections:
1) the combined divisions statement, transmission percentage change column
should read 50.8%; and 2) the electric division statement, operating expense
percentage change column should read (15.2°/x). The overall net cost of power
including transmission costs from January 2016 through January 2017 increased
3%.
After discussion, a motion was made by Secretary Girard, seconded by
Commissioner Martinez to approve the financial statements. Motion was
unanimously carried.
4. Open Forum
5. Communication
a. City Administrator — Matthew Jaunich
i. In 2016, there were 30 new homes built in the city of Hutchinson.
b. Divisions
i. Randy Blake —
1. General Electric issued a new service bulletin for HUC's LM -6000
engine. The bulletin states that the engine will need to be removed from
the package and sent to Depot for NDT of the stages 3-9 HPC spools
before or at 2,940 starts.
ii. Jared Martig -
1. The BS&A software conversion "going live" date is scheduled for early
May 2017.
iii. John Webster -
1 . Tomorrow is the annual Damage Prevention meeting being held at the
Hutchinson Event Center.
2. Working on new DOT programs this spring.
3. Looking at upgrading industrial metering facilities.
4. Baseload contracts locked in at $4.00 through October 2019, $4.50 from
November 2019 through October 2021 and $4.535 from November 2021
through October 2026.
c. Legal — Attorney Sebora
i. Nothing to report.
d. General Manager — Jeremy Carter
i. Last Friday's stakeholder meeting was postponed to later this month.
ii. GM Carter presented a draft request for proposal (RFP) for a rate study.
GM Carter requested the Board review the RFP and provide feedback. He
also mentioned there is a subcommittee being proposed and asked if any
Board members would like to join. GM Carter explained most MRES
member municipal utilities utilize MRES for their rate studies. HUC is a
member of MRES and MRES provides rate studies to their members for
one-half the fee. MRES does rate studies for electric and water only. HUC
needs a study for natural gas as well; therefore, GM Carter may revise the
RFP to allow flexibility for multiple firm submissions. Discussion held
regarding the restructuring of HUC's current rate structure. The Board
decided to schedule a workshop to discuss further.
iii. Working on final numbers on a project to add Units 6 and 7. Working on
securing a 20 -year capacity contract to cover the majority of the cost of the
project. There will be multiple manufacturers in the running to bid for the
project. GM Carter suggested conducting a workshop to get the
commission's feedback on the feasibility of pursuing this project. The goal is
to have the engines operational by year end 2018 with the capacity
contracts starting in 2020.
iv. Working on the wholesale generation model.
6. Policies
a. Review Policies
i. Electric Service Requirements & Charges
ii. Temporary Service — Electric
iii. CIP Rebate Level of Authority
iv. Service Beyond City Limits of Hutchinson
v. Hiring
vi. Probationary Period Upon Hiring
vii. Temporary Employees
No changes were recommended at this time.
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b. Approve Changes
i. Purchasing Policy
The changes made were for clarification.
After discussion, a motion was made by Secretary Girard, seconded by Vice
President Hanson to approve the changes to the Purchasing Policy. Motion
was unanimously carried. (Changes attached.)
7. Unfinished Business
a. Update on Pack Gas Discussions
The two parties met February 10. Until they resolve how to reconcile the
unaccounted for natural gas portion beyond the Interconnect station, they are
not inclined to take any action to resolve RUC's pack gas part.
8. New Business
a. Approve Requisition #7019 for Purchase of a Specific Gravity Meter for
Station 1
John Webster presented Requisition #7019 for the purchase of a specific
gravity meter for Station 1 in the amount of $37,173.91. A motion was made by
Vice President Hanson, seconded by Secretary Girard to approve Requisition
#7019 for the purchase of a specific gravity meter for Station 1. Motion was
unanimously carried. (Requisition attached.)
b. Approve Requisition #7031 for the Lift and Service Body from ABM Equipment
for the New Bucket Truck
GM Carter presented Requisition #7031 for the lift and service body from ABM
Equipment for the new bucket truck in the amount of $86,291.94. A motion was
made by Secretary Girard, seconded by Commissioner Martinez to approve
Requisition #7031 for the purchase of a lift and service body from ABM
Equipment for the new bucket truck. Motion was unanimously carried.
(Requisition attached.)
c. Approve Requisition #7032 for the Cab/Chassis from Midway Ford for the New
Bucket Truck
GM Carter presented Requisition #7032 for the cab/chassis from Midway Ford
for the new bucket truck in the amount of $44,919.17. A motion was made by
Vice President Hanson, seconded by Commissioner Martinez to approve
Requisition #7032 for purchase of the cab/chassis from Midway Ford for the
new bucket truck. Motion was unanimously carried. (Requisition attached.)
d. Approve Requisition #7038 for Unit 8 Excitation/Voltage Control System
Randy Blake presented Requisition #7038 for Unit 8 excitation/voltage control
system in the amount of $106,714.70. A motion was made by Vice President
Hanson, seconded by Secretary Girard to approve Requisition #7038 for the
Unit 8 excitation/voltage control system. Motion was unanimously carried.
(Requisition attached.)
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e. Approve Requisition #7044 for the Dump Body from Crysteel Truck Equipment
GM Carter presented Requisition #7044 for the dump body from Crysteel Truck
Equipment in the amount of $12,963.09. A motion was made by Vice President
Hanson, seconded by Secretary Girard to approve Requisition #7044 for the
purchase of the dump body from Crysteel Truck Equipment. Motion was
unanimously carried. (Requisition attached.)
Approve Requisition #7045 for the Dodge Ram 5500 Chassis from Nelson Auto
Center
GM Carter presented Requisition #7045 for the Dodge Ram 5500 chassis from
Nelson Auto Center in the amount of $34,584.72. A motion was made by Vice
President Hanson, seconded by Commissioner Martinez to approve Requisition
#7045 for the purchase of the Dodge Ram 5500 chassis from Nelson Auto
Center. Motion was unanimously carried. (Requisition attached.)
g. Discuss City Ordinance 132.25 Utilities Service Interruption
Attorney Sebora presented the City Ordinance 132.25 Utilities Service
Interruption. In the early 2000's a city ordinance was enacted to make it
unlawful for any person with or without a permit or license to damage, break or
disrupt city utility services. This ordinance was enacted during a time with
increased construction and development not only by local contractors but by
contractors from outside the region and during a time of increased utility service
damage.
Since that time, fewer utility services have been hit or damaged and local
contractors are inquiring about the city abolishing this ordinance. Because this
is a city ordinance, only the city council can remove the ordinance. The City of
Hutchinson is asking Hutchinson Utilities for their feedback and viewpoint on
this as it relates to gas and electric services. The Commission Board supports
the ordinance be removed.
9. Adjourn
There being no further business, a motion was made by Secretary Girard,
seconded by Commissioner Martinez to adjourn the meeting at 3:59 p.m. Motion
was unanimously carried.
ATTEST:
Monty rrow, President
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Mark Girard, Secretary
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