08-01-2018 HUCM Special MeetingMINUTES
Special Meeting — Hutchinson Utilities Commission
Wednesday, August 1, 2018
Call to order —10:00 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: Peter Mikhail with Kennedy -Graven, Chris Novak with Corval, and Angie
Radke.
The purpose of the special meeting is to have a closed session pursuant to Minn. Stat. §
13D.05, Subd. 3(b), for attorney -client privileged communications concerning Corval
Constructors, Inc, v. City of Hutchinson and Hutchinson Utilities Commission along with
discussing bid award and bid process for the Plant 1 Units 6 & 7 Installation Project.
President Morrow asked the Commission if there was a motion to approve the Agenda.
Motion by Commissioner Wendorff, second by Commissioner Hanson to approve the
Agenda. Motion carried unanimously.
Motion by Commissioner Hanson, second by Commissioner Martinez to close the
meeting to discuss pursuant to Minn. Stat. § 13D.05, Subd. 3(b), for attorney -client
privileged communications concerning Corval Constructors, Inc. v. City of Hutchinson and
Hutchinson Utilities Commission. Motion carried unanimously. The meeting closed at
10:02a.m.
Members present for the closed session: President Monty Morrow; Vice President
Anthony Hanson; Secretary Robert Wendorff; Commissioner Don Martinez;
Commissioner Matt Cheney; General Manager Jeremy Carter; Attorney Marc Sebora;
Peter Mikhail with Kennedy -Graven
Motion by Commissioner Martinez, second by Commissioner Wendorff to move from
closed meeting back to open meeting. Motion was unanimously carried. The meeting
was reopened at 10:15a.m.
Commissioner Morrow asked GM Carter and Marc Sebora to provide a brief synopsis of
what to do going forward. GM Carter discussed HUC has Resolution 18-04 (Attached) to
rescind bid award to Fagen, reject all bids, and re -bid the Plant 1 units 6 & 7 Installation
Project. HUC would like to 1) rescind Fagen's Inc previously awarded bid as they did not
acknowledge receipt of Addendum No. M-2 in its bid making Fagen's bid nonresponsive
to the material terms of the bid invitation 2) HUC would like to reject all bids for the Plant
1 Units 6 & 7 Installation Project and rebid; the original bid documents provided
discretionary items to the bidders which did not allow a fair basis for comparing bid
proposals. HUC and HDR need to revise the bid documents before rebidding and 3)
Commission shall prepare a revised invitation for bids to ensure sufficient fairness in the
process, and shall rebid the Plant 1 Units 6 & 7 Installation Project. HUC will be asking
the Commission to re -advertise the installation portion of the project and move forward
from there.
Mr. Sebora noted that sums it up. Mr. Sebora added key components need to be
addressed, the bid specifications need to be fair to everyone that is going to bid.
President Morrow asked if there were any questions from commissioners.
There being no additional questions or discussions a motion by Commissioner Hanson,
second by Commissioner Martinez to adopt resolution 18-04. Motion carried
unanimously.
Resolution 18-04 is adopted.
President Morrow asked GM Carter what the timeline would be. GM Carter noted that
HUC would like to move forward in a week to 10 days. Within this timeframe, HUC and
HDR will be working on cleaning up the documents, and making sure all discretionary
items are no longer in the documents. This process will also help with electrical bids.
After changes have been made to the documents, Staff will ask the Commission to set a
Special Meeting to approve Advertisement of Bids for Installation. The bid process will
take 30 days. Even though we have done this process before, HUC still needs to have
equal opportunity to allow ample time for companies to review and send in bids. After 30
days, the bids will be opened and reviewed to make sure all specifications have been
meet. Once bids have been reviewed, Staff will ask the Commission to have a Special
Meeting to Award the Bid. After the bid is awarded, Staff and HDR will review the contract.
This review process will make sure all specifications and contract language has been met
and is correct along with making sure all bonds have been received. Once the contract
has been reviewed, Staff will ask the Commission to have a Special Meeting to Approve
the Contract. For the Electrical contract, Staff will start moving forward about 2-3 weeks
after Advertisement of bids on Mechanical portion has been started. This will give
electrical contractors an idea on who may be bidding on the mechanical portion.
GM Carter inquired if there were any questions on the timeline.
Commissioner Hanson asked if there was anything to gain with having both mechanical
and electrical bids going at the same time.
GM Carter noted that a concern by having both mechanical and electrical at same time
is there may not be a real solid date on when mechanical work will be done. Also,
electrical contractors may want to know who they will be working with. GM Carter added,
the engines need to be certified to the MISO market by August 30 this year for planning
year June 1, 2020-May 31, 2021. GM Carter also added this gives Staff additional time
to work on the natural pipeline now, Staff held back a little bit due to the foundation work.
HUC still wants to continue with same timeframe, do a good job, and not rush a complex
process. These are all critical projects; mechanical and electrical. If there are other
thoughts, Staff can discuss.
President Morrow appreciated the summary and asked the Commissioners to look at their
schedules and try to be open for a Special Meeting to come.
There being no further business, a motion by Commissioner Wendorff, second by
Commissioner Cheney to adjourn the meeting at 10:33a.m. Motion was unanimously
carried.
ATTEST:
Monty M row, President
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