03-23-2017 HUCM Special MeetingMINUTES
Special Meeting — Hutchinson Utilities Commission
Thursday. March 23, 2017
Call to order — 7:00 a.m.
President Morrow called the meeting to order. Members present: President Monty
Morrow; Vice President Anthony Hanson; Secretary Mark Girard; Commissioner Robert
Wendorff; Commissioner Don Martinez; General Manager Jeremy Carter
Others present: Jared Martig, Dave Hunstad, Dan Lang, and Kim Koski.
The purpose of the special meeting was to conduct a workshop to discuss Units 6 and 7
generation project.
GM Carter presented an overview on the proposed generation project of installing two
new units at Plant 1 (Units 6 and 7) at 9 to10 megawatts per unit along with a general
timeline for the project. HUC would utilize tax-exempt financing along with entering into
a capacity contract with municipal buyers which would cover the majority of the project
cost. The estimated project cost is $16 million to $18 million to be financed over 20
years. GM Carter emphasized these are best estimates and the final costs of the project
will be based on bid specifications and line item quoting by various vendors.
(Presentation attached.)
GM Carter stated there would be an out clause in the capacity contracts effective until
December 2017 to allow an out if HUC decides before then that the project is not
feasible. There would be approximately $700,000 of unrecoverable costs if the project
does not move forward.
After considering the concerns and benefits to HUC regarding this project, the Board
sees the generator project as viable.
GM Carter will put together additional analysis to bring back to the Board.
There being no further business, a motion was made by Vice President Hanson,
seconded by Secretary Girard to adjourn the meeting at 8:53 a.m. Motion was
unanimously carried.
ji
WrkJ Girard, Secretary
ATTEST:
Monty orrow, President