06-09-2017 HUCM Special MeetingMINUTES
Special Meeting — Hutchinson Utilities Commission
Friday, June 9, 2017
Call to Order — 7:30 a.m.
President Monty Morrow called the meeting to order at 7:30 a.m. The purpose of the
special meeting is to consider the advertisement for bids for the units 6 and 7 generator
project. Members present: President Monty Morrow; Vice President Anthony Hanson;
Commissioner Robert Wendorff; and Commissioner Don Martinez. Commissioner Mark
Girard was absent. Others present: General Manager Jeremy Carter; Attorney Marc
Sebora.
1. Consideration of Advertisement for Bids for Units 6 and 7 Generator Project
General Manager Jeremy Carter presented information regarding the bid process for
the 9-10 megawatt natural gas fired reciprocating internal combustion engine
generator sets and auxiliaries, to be known as Units 6 and 7.
The Commission reviewed the bid documents that are provided to the bidders.
These include the Advertisement for Bid, the Final Bid Document, and the Final
Technical Data Sheet. Bids are required due to the scope and cost of the project as
Hutchinson Utilities (HUC) is a public entity. The bid documents and requirements
are in place to ensure we are providing the necessary specification information to
potential bidders and are receiving the information we require and need to consider
the bid and to put all bidders on an equal playing field. There is a required site visit
for all bidders to assist them in formulating a thorough and appropriate bid.
If approved, the bid notice will be forwarded, today, to the Hutchinson Leader the
official newspaper for proper advertisement. HUC will also directly send the bid
documents to 3 major manufacturers that are known to the HUC. These are
Wartsilla, Caterpillar and Rolls Royce. The efficiencies of all of these engines are
similar, but maintenance costs can differ.
Sealed bids for the two 9-10 megawatt natural gas fired reciprocating internal
combustion engine generator sets and auxiliaries are due no later than 2:00 p.m. on
Friday, July 14, 2017. The bids will be publicly opened and read aloud at 2:00 p.m.
on July 14 at the Hutchinson Utilities Commission offices.
It is anticipated that it will take staff approximately 30 days to properly and
thoroughly review the bids. It is likely that any request for action on accepting a bid
can be on the regular HUC meeting in August 2017.
There was some discussion regarding the differences of reciprocating engines and
gas turbines. The energy to be generated by the new engines will provide more
generating capacity and opportunity for additional revenues.
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GM Carter also noted that he is in contact with the HUC financial advisors regarding
financing for the project. It was inquired if the Hutchinson City Council is required to
sign off on or approve any financing. Staff will look into this, and at minimum, inform
the Hutchinson City Council of the project.
The bid documents are based on those that were used for the Unit 5 project and
have been reviewed by staff and legal counsel.
Motion by Hanson, second by Martinez, to approve the Advertisement for Bids for
Units 6 and 7 Generator Project. Motion carried unanimously.
2. Adjourn
There being no further business, a motion was made by Wendorff, second by
Martinez to adjourn the meeting at 7:48 a.m. Motion carried unanimously.
ATTEST
Monty Mo , President
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Mark Girard, Secretary