06-27-2018 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, June 27, 2018
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 Robert Wendorff; Commissioner
Mark Girard; Commissioner Don Martinez; General Manager Jeremy Carter; Attorney
Marc Sebora
Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Wendorff, second by Commissioner Girard to approve the
Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
Jared Martig presented the financial statements. Customer revenue is down due to
switching software in April of last year; May of 2017 had five extra billing days. Mr.
Martig also noted that cash is down $2.2M and will be going down every month due
to paying the generator bills.
GM Carter noted HUC had no power cost adjustment (PCA) for May 2018. Total
PCA's for 2018 brought in an extra $466,036 YTD. Investment report dropped $7M
due to not reinvesting the bond proceeds but having it come into HUC's bank
account to make payments on the generator project. Otherwise trending well
through May on both Natural Gas and Electric Divisions.
Motion by Commissioner Hanson, second by Commissioner Martinez to approve the
financial statements. Motion carried unanimously.
4. Open Forum
5. Communication
a. City Administrator — Matthew Jaunich
i. 2"d Ave Bridge project is looking to finish the end of August.
ii. Century project will be starting in July.
b. Divisions
i. Dan Lang, Engineering Services Manager — Absent
ii. Dave Hunstad, Electric Transmission/Distribution Manager —
1. For the monthly outage report there was nothing to report for May
2. Working on Projects in-between rain.
3. Working with Uponor on their project
iii. Randy Blake, Production Manager -
1. Generators arrived at Duluth ports last night at 6pm. Unloading as of 8am
today.
2. Installation bid opening is Monday July 2"d at 2pm
iv. John Webster, Natural Gas Division Manager- Absent
v. Jared Martig, Financial Manager-
1. Audit is complete. Looking to have a special meeting in July.
2. Working with BS&A on inventory testing.
c. Human Resources - Brenda Ewing — Nothing to Report
d. Legal — Marc Sebora — Nothing to report
e. General Manager — Jeremy Carter
i. APPA conference went well. Topics of discussion were cyber security,
customer service, merging technology that is coming out and grid reliability;
learning to prioritize in case of natural disaster.
ii. Reviewing COS executive reports. Sent back remarks and should hear back
in couple of weeks.
iii. Continuing to go back and forth with Heartland Corn on Reservation
Agreement.
iv. Will be looking to schedule a Special meeting in July for Awarding bid on units
6 & 7 Installation bid and Advertising for Bid for Units 6 & 7 Electrical
Installation.
6. Policies
a. Review Policies
i. Establishing a New Electric/Natural Gas Account
ii. Complaint/Grievance Procedure
iii. Employee Conduct
iv. Discipline
v. Conflict of Interest
vi. Intellectual Property (Exempt only)
vii. Other Employment
No changes recommended at this time.
b. Approve Changes
i. Delegation of Authority Policy- as noted, cleaning up language
ii. Hutchinson Utilities Commission- as noted, adjusted our website from last
outage by revamping the call tree.
Motion by Commissioner Girard, second by Commissioner Martinez to approve the
policy changes as recommended. Motion carried unanimously.
7. Unfinished Business
8. New Business
a. Declare Surplus Vehicles
2
GM Carter discussed disposing of vehicles as part of HUC's Fleet
Management program. Staff is asking Commission for authorization to dispose
of surplus vehicles so that when the new vehicles approved for purchase earlier
in the year arrive the old vehicles can be sent to auction. Approximate value
for auction is $48,000.
A motion by Commissioner Hanson, second by Commissioner Girard to
approve Declare Surplus Vehicles. Motion carried unanimously.
b. Approval of Buyers Authorizing Resolution for the Short -Term Natural Gas
Prepay Deal
GM Carter presented the Approval of Buyers Authorizing Resolution for Short -
Term Natural Gas Prepay Deal. The contract attached in the packet is for
reference purposes at this point in relation to approval of the resolution.
Approving the resolution does not tie HUC into any sort of agreement at this
point. Passing the resolution just keeps HUC moving forward in the process of
coming to mutual terms on an actual contract. The actual contract might come
in September.
After discussion, a motion by Commissioner Hanson, second by Commissioner
Girard to approve Buyers Authorizing Resolution for the Short -Term Natural
Gas Prepay Deal. Motion carried unanimously.
c. Approval of Requisition #7618 to Provide for Purchase of Natural Gas
Diaphragm Meters
GM Carter presented the Approval of Requisition #7618 to Provide for
Purchase of Natural Gas Diaphragm Meters. Natural Gas Division is in need
for additional residential diaphragm meters to replace the 1960's meters being
removed as well as for new construction for a cost of $57K. The budgeted
amount was $90K. These purchases are part of the meter replacement
program in the Natural Gas Division.
A motion by Commissioner Girard, second by Commissioner Martinez to
approve Requisition #7618 to Provide for Purchase of Natural Gas Diaphragm
Meters. Motion carried unanimously.
At this time the Commissioners, Mr. Sebora and Staff congratulated Commissioner
Mark Girard on his 5 years of service on the Commission Board.
9. Adjourn
There being no further business, a motion by Commissioner Girard, second by
Commissioner Hanson to adjourn the meeting at 3:25p.m. Motion carried
unanimously.
3
ATTEST•
onty M rrow, President