04-26-2017 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, April 26, 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
Robert Wendorff; Commissioner Don Martinez; General Manager Jeremy Carter;
Attorney Marc Sebora.
1. Conflict of Interest
None
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
A motion was made by Secretary Girard, seconded by Commissioner Wendorff to
approve the Consent Agenda. Motion was unanimously carried.
At this time, the Board thanked Kim Koski for her years of service with HUC.
3. Approve Financial Statements
GM Carter presented the financial statements
President Hanson, seconded by Commissioner
statements. Motion was unanimously carried.
4. Open Forum
5. Communication
a. City Administrator — Matthew Jaunich
i. Busy construction season this year.
b. Divisions
i. Randy Blake —
1. Nothing to report.
ii. John Webster -
. A motion was made by Vice
Martinez to approve the financial
1. Had a meeting with contractors regarding steel work being done on
School Road.
2. Met with Greater Minnesota Gas and United Natural Gas to discuss their
need for additional capacity at the Lafayette Station.
3. Spoke with Heartland Corn this afternoon regarding the settlement and
the additional meter module they will need.
iii. Dave Hunstad -
1. Started spring projects.
I.
iv. Dan Lang -
1. Nothing to report.
c. Legal — Attorney Sebora
i. GM Carter's contract expires before May's regular commission meeting. A
special meeting may need to be set for approval of GM Carter's new
contract.
d. General Manager — Jeremy Carter
i. A joint meeting with the City will take place at 7:30 a.m. tomorrow at the City
Center.
ii. The BS&A system final data extract is scheduled for tonight with the "go
live" date on May 1, 2017. Manager training will be held tomorrow.
iii. There will be a notice in the May billing that HUC is moving to a new billing
system.
iv. May's bill will have 26 days of meter reading versus 30 days and June's bill
will have 35 days instead due to the software conversion.
v. Attending a few upcoming webinars.
vi. Will be reviewing administrative coordinator and account coordinator job
applications.
Policies
a. Review Policies
i. Employment of Relatives
ii. Tree Removal or Trimming
iii. Locating Customer's Underground Utilities — Electric
iv. Temporary Service - Gas
No changes were recommended at this time.
b. Approve Changes
i. Natural Gas Service Requirements & Charges
The proposed changes were to simplify the process and encourage multi-
family, commercial and industrial development in Hutchinson. HUC staff
proposes a revised installation fee for multi -family, commercial and
industrial service installations and also adding a definition to "Service Line
Length". This modification provides for not penalizing a customer in the
case when the distribution main is located on the opposite side of the road.
Excess flow valve language reflects current Department of Transportation
code.
After discussion, a motion was made by Vice President Hanson, seconded
by Secretary Girard to approve the changes to Natural Gas Service
Requirements and Charges. Motion was unanimously carried. (Changes
attached.)
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7. Unfinished Business
a. Update on Pack Gas Discussions
HUC received the draft settlement agreement and is in the process of reviewing
it.
8. New Business
a. Certificate of Excellence in Reliability
Dave Hunstad explained the Certificate of Excellence received by HUC is
recognition for reliability showing HUC consistently outperforms the electric
industry national average.
b. Discussion on Units 6 and 7
GM Carter discussed two options as project timelines:
1) Traditional - hiring an engineering firm to develop detailed bid specification
documents for engine manufacturers to bid on, publically advertising for
proposals, opening bids from engine manufacturers for the project, once the
engine manufacturer is chosen a second set of bid documents with the engine
specifications will be developed and will go out for the projects ancillary
services. This option is less risky and has a longer timeline.
2) General Contractor - put preliminary bid specifications out to bid and hire a
general contractor responsible for putting together a turnkey project. These bids
will be less detailed on the specifications which will result in less accurate bids.
This option is more risky but has a more condensed timeline.
GM Carter requested feedback from the Board regarding the two options. After
discussion, the Board chose the traditional option.
c. Approve Capacity Confirmation and Supplementary Agreements
GM Carter presented both agreements for approval. These agreements are for
the sale of capacity from HUC to Rice Lake Utilities in years 2020 through
2040.
After discussion, a motion was made by Vice President Hanson, seconded by
Secretary Girard to approve the Capacity Confirmation and Supplementary
Agreements. Motion was unanimously carried. (Agreements attached.)
d. Approve Agreement with HDR, Inc.
GM Carter presented the Agreement between HUC and HDR Engineering, Inc.
Hutchinson Utilities Commission has been discussing adding two new units to
the downtown facility backed by a significant monetary capacity agreement.
The addition of these two new units to HUC's engine fleet will provide added
benefits and continued flexibility to HUC's business operations in the near and
long-term future. In order to move ahead with a formal bidding process for this
type of project an engineering firm will need to be hired that can design bid and
specification documents that will be supplied to the various engine
manufacturers and ancillary services contractors with which to bid on. In
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addition, project management and bid document oversight will also be a part of
the scope of work provided by the engineering firm HDR. The agreement
provides a complete scope of work, cost, and anticipated time -line to complete
the engineering services and installation/commissioning of the two new
engines.
After discussion, a motion was made by Secretary Girard, seconded by Vice
President Hanson to approve the Engineering Services Agreement with HDR.
Motion was unanimously carried. (Agreements attached.)
e. Approve Requisition 7078 to Provide for Purchase of Natural Gas Diaphragm
Meters with AMI Modules; John Webster presented Requisition 7078 for
approval to provide for purchase of natural gas diaphragm meters with AMI
modules. This is to further reduce the lost and unaccounted for natural gas at
Hutchinson Utilities. The Natural Gas Division is attempting to replace the
oldest six years of active meters in the system. As of April 1, 357 meters remain
to be removed from service from the original manufactured years of 1960
through 1965. In order to comply with Hutchinson Utilities' self-imposed meter
testing program, 76 additional meters must be removed from the manufactured
years 1966 through 2012. In order to replace the 357 oldest meters in service,
Hutchinson Utilities is required to purchase 300 additional meters, with AMI
modules, for working inventory.
A motion was made by Commissioner Martinez, seconded by Commissioner
Wendorff to approve Requisition 7078 to provide for purchase of natural gas
diaphragm meters with AMI modules. Motion was unanimously carried.
(Requisition 7078 attached.)
9. Adjourn
There being no further business, a motion was made by Vice President Hanson,
seconded by Secretary Girard to adjourn the meeting at 4:03 p.m. Motion was
unanimously carried.
ATTEST
Monty Porrow, President
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Mark Oirard, Secretary