09-19-2018 HUCM Special MeetingMINUTES
Special Meeting — Hutchinson Utilities Commission
Wednesday, September 19, 2018
Call to order — 7:00 a.m.
President Morrow called the meeting to order. Members present: President Monty
Morrow; Vice President Anthony Hanson; Secretary Robert Wendorff; Commissioner Don
Martinez; Commissioner Matt Cheney; General Manger Jeremy Carter; Attorney Marc
Sebora
Others present: John Webster, Angie Radke.
The purpose of the special meeting is the Execution of the Prepay Natural Gas Supply
Contract.
GM Carter reviewed the Prepay Natural Gas Supply contract. This process started back
almost 2 years ago. The original conversations were for a 30-year, 25-cent discount.
However, Staff did not feel it would meet the State Statutes. Many conversations were
discussed on the wording of the document and it was decided that a 30-year contract was
not the best fit for HUC. In June of 2018, Staff presented a Buyers Authorizing Resolution
for Short -Term Natural Gas Prepay Deal. Commission approved this on June 27, 2018.
Today, Staff would like to move forward with executing a Prepay Natural Gas Supply
contract. GM Carter stated there was a due diligence call with himself, Mr. Webster, the
Bond Council, attorneys, BP and PEAK for the Natural Gas Prepay Contract a couple of
weeks ago. HUC is one of the top 20 participants, which is why Staff was part of the bond
call. There are many participants that are committing to the 30-year contract, however
HUC recommends the short-term contract at 6 years for a 6-cent discount. Before the
Commission, is the Gas Supply Contract and Buyers Certificate. Attorney Marc Sebora
will sign the Opinion Letter. These documents will execute HUC into the contract and
states that HUC will pay for the gas when it is received and that HUC will honor the deal.
The Delivery period will be April 1, 2019, through the earlier of November 24, 2024.
Discussions were held on what cities are moving forward with the 30-year contract along
with why the language of the contracts were suitable for them.
After further discussion, a motion by Commissioner Martinez, second by Commissioner
Hanson to approve the Execution of the Prepay Natural Gas Supply Contract.
There being no further business, a motion by Commissioner Wendorff, second by
Commissioner Cheney to adjourn the meeting at 7:13a.m. Motion was unanimously
carried.
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