03-01-2017 HUCCPMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, March 1, 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
Don Martinez; Attorney Marc Sebora; General Manager Jeremy Carter.
Absent: Commissioner Robert Wendorff
Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
A motion was made by Vice President Hanson, seconded by Secretary Girard to
approve the Consent Agenda. Motion was unanimously carried.
3. Approve Financial Statements
Jared Martig presented the financial statements. GM Carter noted two corrections:
1) the combined divisions statement, transmission percentage change column
should read 50.8%; and 2) the electric division statement, operating expense
percentage change column should read (15.2%). The overall net cost of power
including transmission costs from January 2016 through January 2017 increased
3%.
After discussion, a motion was made by Secretary Girard, seconded by
Commissioner Martinez to approve the financial statements. Motion was
unanimously carried.
4. Open Forum
5. Communication
a. City Administrator — Matthew Jaunich
i. In 2016, there were 30 new homes built in the city of Hutchinson.
b. Divisions
i. Randy Blake —
1. General Electric issued a new service bulletin for HUC's LM -6000
engine. The bulletin states that the engine will need to be removed from
the package and sent to Depot for NDT of the stages 3-9 HPC spools
before or at 2,940 starts.
Jared Martig -
1. The BS&A software conversion "going live" date is scheduled for early
May 2017.
iii. John Webster -
1 . Tomorrow is the annual Damage Prevention meeting being held at the
Hutchinson Event Center.
2. Working on new DOT programs this spring.
3. Looking at upgrading industrial metering facilities.
4. Baseload contracts locked in at $4.00 through October 2019, $4.50 from
November 2019 through October 2021 and $4.535 from November 2021
through October 2026.
c. Legal — Attorney Sebora
i. Nothing to report.
d. General Manager — Jeremy Carter
i. Last Friday's stakeholder meeting was postponed to later this month.
ii. GM Carter presented a draft request for proposal (RFP) for a rate study.
GM Carter requested the Board review the RFP and provide feedback. He
also mentioned there is a subcommittee being proposed and asked if any
Board members would like to join. GM Carter explained most MRES
member municipal utilities utilize MRES for their rate studies. HUC is a
member of MRES and MRES provides rate studies to their members for
one-half the fee. MRES does rate studies for electric and water only. HUC
needs a study for natural gas as well; therefore, GM Carter may revise the
RFP to allow flexibility for multiple firm submissions. Discussion held
regarding the restructuring of HUC's current rate structure. The Board
decided to schedule a workshop to discuss further.
iii. Working on final numbers on a project to add Units 6 and 7. Working on
securing a 20 -year capacity contract to cover the majority of the cost of the
project. There will be multiple manufacturers in the running to bid for the
project. GM Carter suggested conducting a workshop to get the
commission's feedback on the feasibility of pursuing this project. The goal is
to have the engines operational by year end 2018 with the capacity
contracts starting in 2020.
iv. Working on the wholesale generation model.
6. Policies
a. Review Policies
i. Electric Service Requirements & Charges
ii. Temporary Service — Electric
iii. CIP Rebate Level of Authority
iv. Service Beyond City Limits of Hutchinson
v. Hiring
vi. Probationary Period Upon Hiring
vii. Temporary Employees
No changes were recommended at this time.
2
b. Approve Changes
i. Purchasing Policy
The changes made were for clarification.
After discussion, a motion was made by Secretary Girard, seconded by Vice
President Hanson to approve the changes to the Purchasing Policy. Motion
was unanimously carried. (Changes attached.)
7. Unfinished Business
a. Update on Pack Gas Discussions
The two parties met February 10. Until they resolve how to reconcile the
unaccounted for natural gas portion beyond the Interconnect station, they are
not inclined to take any action to resolve HUC's pack gas part.
8. New Business
a. Approve Requisition #7019 for Purchase of a Specific Gravity Meter for
Station 1
John Webster presented Requisition #7019 for the purchase of a specific
gravity meter for Station 1 in the amount of $37,173.91. A motion was made by
Vice President Hanson, seconded by Secretary Girard to approve Requisition
#7019 for the purchase of a specific gravity meter for Station 1. Motion was
unanimously carried. (Requisition attached.)
b. Approve Requisition #7031 for the Lift and Service Body from ABM Equipment
for the New Bucket Truck
GM Carter presented Requisition #7031 for the lift and service body from ABM
Equipment for the new bucket truck in the amount of $86,291.94. A motion was
made by Secretary Girard, seconded by Commissioner Martinez to approve
Requisition #7031 for the purchase of a lift and service body from ABM
Equipment for the new bucket truck. Motion was unanimously carried.
(Requisition attached.)
c. Approve Requisition #7032 for the Cab/Chassis from Midway Ford for the New
Bucket Truck
GM Carter presented Requisition #7032 for the cab/chassis from Midway Ford
for the new bucket truck in the amount of $44,919.17. A motion was made by
Vice President Hanson, seconded by Commissioner Martinez to approve
Requisition #7032 for purchase of the cab/chassis from Midway Ford for the
new bucket truck. Motion was unanimously carried. (Requisition attached.)
d. Approve Requisition #7038 for Unit 8 Excitation/Voltage Control System
Randy Blake presented Requisition #7038 for Unit 8 excitation/voltage control
system in the amount of $106,714.70. A motion was made by Vice President
Hanson, seconded by Secretary Girard to approve Requisition #7038 for the
Unit 8 excitation/voltage control system. Motion was unanimously carried.
(Requisition attached.)
3
e. Approve Requisition #7044 for the Dump Body from Crysteel Truck Equipment
GM Carter presented Requisition #7044 for the dump body from Crysteel Truck
Equipment in the amount of $12,963.09. A motion was made by Vice President
Hanson, seconded by Secretary Girard to approve Requisition #7044 for the
purchase of the dump body from Crysteel Truck Equipment. Motion was
unanimously carried. (Requisition attached.)
Approve Requisition #7045 for the Dodge Ram 5500 Chassis from Nelson Auto
Center
GM Carter presented Requisition #7045 for the Dodge Ram 5500 chassis from
Nelson Auto Center in the amount of $34,584.72. A motion was made by Vice
President Hanson, seconded by Commissioner Martinez to approve Requisition
#7045 for the purchase of the Dodge Ram 5500 chassis from Nelson Auto
Center. Motion was unanimously carried. (Requisition attached.)
g. Discuss City Ordinance 132.25 Utilities Service Interruption
Attorney Sebora presented the City Ordinance 132.25 Utilities Service
Interruption. In the early 2000's a city ordinance was enacted to make it
unlawful for any person with or without a permit or license to damage, break or
disrupt city utility services. This ordinance was enacted during a time with
increased construction and development not only by local contractors but by
contractors from outside the region and during a time of increased utility service
damage.
Since that time, fewer utility services have been hit or damaged and local
contractors are inquiring about the city abolishing this ordinance. Because this
is a city ordinance, only the city council can remove the ordinance. The City of
Hutchinson is asking Hutchinson Utilities for their feedback and viewpoint on
this as it relates to gas and electric services. The Commission Board supports
the ordinance be removed.
9. Adjourn
There being no further business, a motion was made by Secretary Girard,
seconded by Commissioner Martinez to adjourn the meeting at 3:59 p.m. Motion
was unanimously carried.
ATTEST:
Monty rrow, President
n
Mark Girard, Secretary
HUTCHINSON UTILITIES COMMISSION REQUISITION FORM
Supplier: MICRO MOTION INC Ship To: HUTCHINSON UTILITIES COMMISSION Requisition No. 007019
7070 WINCHESTER CIRCLE
BOULDER, CO 80301-3501
Phone: 612-670-5640
Fax:
175 MICHIGAN ST SE
HUTCHINSON, MN 55350
Phone: 320-587-4746
Fax: 320-587-4721
Item #
D
Part Num. Description
Request Date
Acct #
WO #
Unit Price
Per
Item Total
1
1
(000-00000)
Line Remarks: Micro Motion PN SGM3AAAAC2131 EZZX_27452,
SGM Gas Specific Gravity and Gas Energy Meter
Ni -
Span
C&
Alum in
um
Multiva
riable
Trans
mitter
07/03/
1073690100
61705
33,045.00
Each
33,045.00
Intergr
2017
al
Mount.
Samp
le
Condit
ioning
Syste
M,
316
Insulat
ed
Housi
ng
with a
115
VAC
Heater
(NA-
�ge 1 of 2
Item #
D
Part Num. Description
Request Date
Acct #
WO #
Unit Price
Per
Item Total
284-
10),
Press
ure
Regul
ator,
Coale
scing
Filter,
Roto
Meter,
Barrier
S,
Valves
, Wall -
Mount
Bracke
is with
SGM3
AAAA-
B-
zzx.
Per
Propo
sal
Numb
er:
10102
66-2
2
1
(000-00000)
07/03/2017
1073690100
61705
1,630.00
Each
1,630.00
Line Remarks: 3098SG/SGM Startup Assistance. Per Proposal
Number: 1010266-2
Sales Tax 2,383.91
Special Charges 115.00
Total 37.173.91
Requisitioned By: WEBSTER, JOHN Date: 01/30/2017
Approved By: Date:
Page 2 of 2
HUTCHINSON UTILITIES COMMISSION REQUISITION FORM
Supplier: ABM EQUIPMENT AND SUPPLY Ship To: HUTCHINSON UTILITIES COMMISSION Requisition No. 007031
332 2ND ST NE 175 MICHIGAN ST SE
HOPKINS, MN 5543-8337 HUTCHINSON, MN 55350
Phone: 952-938-5451 Phone: 320-587-4746
Fax: 952-938-0159 Fax: 320-587-4721
Item #
Part Num. Description Request Date
Acct # Wo # Unit Price
Per
Item Total
1
1
(000-00000) 02/07/2017
1073920000 51703 80,741.00
Each
80,741.00
Line Remarks: State Contract item #116754 VST -40-1
telescoping/articulating ariel platform lift with fiberglass service
body. per quote# 012017-028-03
Sales Tax 5,550.94
Special Charges 0.00
Total 86, 291.94
Requisitioned By: HUNSTAD, DAVE Date: 02/07/2017
Approved By: Date:
Page 1 of 1
HUTCHINSON UTILITIES COMMISSION REQUISITION FORM
Supplier: MIDWAY FORD COMMERCIAL FLEET & B DVERNMF]UF UMN UTILITIES COMMISSION Requisition No. 007032
2777 N. SNELLING AVE 175 MICHIGAN ST SE
ROSEVILLE, MN 55113 HUTCHINSON, MN 55350
Phone: 651-343-5212 Phone: 320-587-4746
Fax: Fax: 320-587-4721
Item #
Part Num. Description
Request Date
Acct #
WO #
Unit Price
Per
Item Total
1
1
(000-00000)
02/07/2017
1073920000
51703
44,919.17
Each
44,919.17
Line Remarks: State contract bid #109281 Ford F550 4X4 super
cab 84" CA DRW XL X51-1 per quote from Midway Ford.
Sales Tax 0.00
Special Charges 0.00
Total 44,919.17
Requisitioned By: HUNSTAD, DAVE Date: 02/07/2017
Approved By: Date:
Page 1 of 1
HUTCHINSON UTILITIES COMMISSION REQUISITION FORM
Supplier. BASLER ELECTRIC C/O MC SALES Ship To: HUTCHINSON UTILITIES COMMISSION Requisition No. 007038
12470 STATE ROUTE 143 175 MICHIGAN ST SE
HIGHLAND, IL 62249-1074 HUTCHINSON, MN 55350
Phone: 608-835-5761 Phone: 320-587-4746
Fax: Fax: 320-587-4721
Item #
Part Num. Description
Request Date
Acct #
WO #
Unit Price
Per
Item Total
1
1
(000-00000)
10/01/2017
1073440000
11702
19,970.00
Each
19,970.00
Line Remarks: EXCITER/FIELD BREAKER/VOLTAGE CONTROL
SYSTEM REPLACEMENT -per QUOTE# 866658 - PAYMENT
SCHEDULE 20% FOR INITIAL DRAWINGS FOR REVIEW
2
1
(000-00000)
10/01/2017
1073440000
11702
29,955.00
Each
29,955.00
Line Remarks: PAYMENT SCHEDULE 30% - FINAL DESIGN
DRAWINGS
3
1
(0004)0000)
10/01/2017
1073440000
11702
49,925.00
Each
49,925.00
Line Remarks: PAYMENT SCHEDULE - 50% - EQUIPMENT
ARRIVAL AT PLANT 1
Sales Tax 6,864.69
Special Charges 0.00
Total 106,714.70
Requisitioned By: BLAKE, RANDY Date: 02/14/2017
Approved By: Date:
Page 1 of 1
HUTCHINSON UTILITIES COMMISSION REQUISITION FORM
Supplier: CRYSTEEL TRUCK EQUIPMENT Ship To: HUTCHINSON UTILITIES COMMISSION Requisition No. 007044
P O BOX 733 175 MICHIGAN ST SE
LAKE CRYSTAL, MN 56055-073 HUTCHINSON, MN 55350
Phone: 507-726-6041 Phone: 320-587-4746
Fax: 507-726-2984 Fax: 320-587-4721
Item 9 Q
Part Num. Description Request Date Acct # WO #
Unit Price
Per
Item Total
1 1
(000-00000) 02/21/2017 1073920000 51702
12,129.21
Each
12,129.21
Line Remarks: 2017 State Bid 765-9'#116762 Quote by Bob
Chicos for Tipper Box and Hoist Package to be installed on a
2017 Dodge Ram 5500.
Sales Tax 833.88
Special Charges 0.00
Total 12,963.09
Requisitioned By: HUNSTAD, DAVE Date: 02/21/2017
Approved By: Date:
Page 1 of 1
HUTCHINSON UTILITIES COMMISSION REQUISITION FORM
Supplier: NELSON GMC
2228 COLLEGE WAY
PO BOX 338
FERGUS FALLS, MN 56538-0338
Phone: 218-739-2283
Fax: 218-739-6021
Ship To: HUTCHINSON UTILITIES COMMISSION Requisition No. 00704
175 MICHIGAN ST SE
HUTCHINSON, MN 55350
Phone: 320-587-4746
Fax: 320-587-4721
Item #
Q Part Num. Description
Request Date
Acct # WO #
Unit Price
Per
Item Total
1
1 (000-00000)
02/21/2017
1073920000 51702
34,584.72
Each
34,584.72
Line Remarks: 2017 Dodge Ram 5500 Regular Cab 4WD 60" CA
per quote#HutchinsonUt DPOL63
Sales Tax 0.00
Special Charges 0.00
Total 34, 584.72
Requisitioned By: HUNSTAD, DAVE Date: 02/21/2017
Approved By:
Date:
Page 1 of 1