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02-26-2020 HUCCP HUTCHINSON UTILITIES COMMISSION AGENDA REGULAR MEETING February 26, 2020 3:00 p.m. 1. CONFLICT OF INTEREST 2. APPROVE CONSENT AGENDA a. Approve Minutes b. Ratify Payment of Bills 3. APPROVE FINANCIAL STATEMENTS 4. OPEN FORUM 5. COMMUNICATION a. City Administrator b. Divisions c. Human Resources d. Legal e. General Manager 6. POLICIES a. Review Policies i. Section 2 of Exempt Handbook ii. Section 2 of Non-Exempt Handbook b. Approve Changes i. Definitions Exempt & Non-Exempt ii. Violence In The Workplace Exempt & Non-Exempt iii. Promotions And Transfers Exempt & Non-Exempt iv. Flowers - Exempt & Non-Exempt 7. UNFINISHED BUSINESS 8. NEW BUSINESS a. Approve Requisition #8310 2020 Chevy Bolt EV b. Approve Requisition #8318 ChargePoint DC Fast Charging Station c. Review 2019 Annual Distributed Generation d. Approve Advertisement for Bids on Plant #2 Grounding Transformer e. Approve Advertisement for Bids on Plant #2 25/46.7 MVA Transformer f. Set a Special Meeting March 25, 2020 3:30pm Plant Tour 9. ADJOURN MINUTES Regular MeetingHutchinson Utilities Commission Wednesday, January 29, 2020 Call to order 3:00 p.m. President Don Martinez called the meeting to order. Members present: President Don Martinez; Vice President Matt Cheney; Secretary Robert Wendorff; Commissioner Monty Morrow; Commissioner Anthony Hanson; GM Jeremy Carter; Attorney Marc Sebora 1. Conflict of Interest Commissioner Hanson declared conflict of interest in voting on agenda item 3b Ratify Payment of Bills; there is a CIP payment to 235 Hassan LLC, which he is a part owner and agenda item 2f - Designate Depositories for Utility Funds, as he is an employee of Citizens Bank & Trust. Commissioner Hanson will be abstaining from both 3b and 2f agenda items. 2. Commission Reorganization President Martinez called for the annual Commission reorganization. Mr. Sebora stated that combination of a and b; President and Vice President can be made together. a. A motion made by Commissioner Hanson, second by Commissioner Morrow to elect Don Martinez to the position of president and Matt Cheney to the position of vice president. Motion unanimously carried. b. Motion made above c. A motion made by Commissioner Morrow, second by Commissioner Hanson to re-elect Robert Wendorff to the position of secretary. Motion unanimously carried. d. A motion made by Commissioner Cheney, second by Commissioner Wendorff to appoint Marc Sebora as legal counsel. Motion unanimously carried. e. A motion made by Commissioner Cheney, second by Commissioner Hanson to appoint Angie Radke as recording secretary. Motion unanimously carried. f. A motion made by Commissioner Wendorff, second by Commissioner Morrow to designate Citizens Bank & Trust, Wells Fargo Bank, Wells Fargo Advisors, Home State Bank, Morgan Stanley and Cetera Investment Services as depositories for utility funds. Motion unanimously carried. Commissioner Hanson abstained. 3. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Morrow, second by Commissioner Cheney to approve the Consent Agenda. Motion carried unanimously. Commissioner Hanson abstained. 1 4. Approve Financial Statements Mr. Martig presented the Financial Statements. In December 2018, GASB entries caused Salaries and Benefits to reflect a lower amount compared to December 2019, which was due to a $140K decrease in liabilities & expenses booked. This entry will still need to be made in 2019 and it appears PERA had another good investment year, which means there maybe another drop in the Salary & Benefits category in December 2019. GM Carter compared actual to budget numbers. For Electric Division, Customer Revenue was just under 96% of budget. Every class hit the budget projection by with the exception of the Industrial class. Industrial class came in at 87.7% of budget, which was due to 3M being down 4.3% and HTI down 16.5%. Sales for Resales came in at 94% of budget; $147K shortfall came from less sales related to the Transalta contract and MISO Energy sales because of the seasonable weather. MISO sales was budgeted at $225k and ended up coming in at $190K, again due to seasonable weather. Transmission expenses were significantly under budget, due to true ups that started in June with GRE reallocating and paying back over collection from the previous years within the GRE zone. The transmission rate went down approximately 25% from the budgeted rate at the beginning of the year, which was the largest impact as to why HUC came in under budget. The smaller part of this is production area, HUC was not generating as much due to loads being down which lead to not spending as much on fuel costs for the hedging program and servicing the Transalta contract. Gas Division trending well. GM Carter stated overall another good year from an Income Statement/PNL/ Balance Sheet standpoint. Some year-end adjustments still need to be completed but looking at combined year to date as an organization, Financials are at 5.9% on Net Income, which Industry Average is around 7%. Financially another strong year. GM Carter reviewed the Investment report. One of the federal agency step-up investments was called in December. Since then the Large Federal Agency $1.25K was called in January. Interest rates have dropped, so agencies are calling investments at 2%. Going forward there will no longer be Federal agencies on the Investment Report; these are being moved as they are paying better. Trying to keep Interest earnings coming in consistently. GM Carter reviewed Load duration curves. Motion by Commissioner Hanson, second by Commissioner Cheney to approve the financial statements. Motion carried unanimously. 5. Open Forum 6. Communication a. City Administrator Matthew Jaunich i. Entered into an agreement with the Civil Air Patrol Facility ii. Council did approve agreements with MN DOT on the Main Street project. Bids to go out the end of February. Anticipating construction early to mid- April. b. Divisions i. Dan Lang, Engineering Services Manager 2 1. Update on McLeod Sub capacitor bank project. Moving ahead. ii.Dave Hunstad, Electric Transmission/DistributionManager Nothing to report iii. Randy Blake, Production Manager 1. Added a couple of heaters to the bottom of the module on the Gas Turbine at Unit 1. iv. John Webster, Natural Gas Division Director Nothing to report v. Jared Martig, Financial Manager- 1. Auditors are here this week 2. Comparisons work paper on Sales for Resales for next month to compare year to year. c. Human Resources - Brenda Ewing Nothing to Report d. Legal Marc Sebora Nothing to report e. General Manager Jeremy Carter i. Finishing up 5-Year Budget Projections and the Wholesale Updated Financial Model. ii. Working on Legislative items. iii. Working through solar / EV project items iv. Looking at having a Strategic Planning meeting on an annual basis. 1. Dates available in April/May Angie will send email asking for available dates 2. Commissioners to think about survey questions 3. Follow up on Rate discussions. 7. Policies a. Review Policies i. Section 1 of Exempt Handbook ii. Section 1 of Non-Exempt Handbook No changes recommended at this time. b. Approve Changes i. IT Policy GM Carter reviewed the IT Policy. In the past, the City of Hutchinson and HUC have had individual policies. IT Director, Tom Kloss, has been working on consolidating and having more of a comprehensive IT Policy for both organizations. The policy was handed out separately since there is security and confidential information in the policy. Motion by Commissioner Cheney, second by Commissioner Morrow to approve the changes to the IT Policy. Motion carried unanimously. 8. Unfinished Business a. Follow up conversations on Possible City Charter Amendment to change the eligibility requirements to serve as a Hutchinson Utilities Commissioner 3 Mr. Sebora recapped discussions that were held last month on the initial conversation and possible change ofthe charter language to perhaps increase the pool of possible commissioner candidates to serve on the Utilities Commission by allowing owners of businesses to potentially serve as commissioners. Mr. Sebora amended the proposed language to add the rate-paying requirement. After sending the packet, it was noticed that a change was also needed in the language of Section 11.08 Removal of Commissioners, this change has been made and a revised document was sent. Discussions were held on the charter language and the consensus of the Commissioners was to slightly broaden the definition. Mr. Sebora will forward the conversations onto the Charter Commission for the April Meeting. New Business a. Approve Requisition #8255 WSB for 2020 Geohazard Program Mr. Webster presented Requisition #8255 WSB for 2020 Geohazard Program. The Natural Gas Division is required to perform a Geohazard Analysis on the HUC pipeline as required by DOT Pipeline Integrity Management Program. Phase 1 was conducted by WSB in 2019, which provided for the desktop modeling on the pipeline from New Ulm to Hutchinson. Motion by Commissioner Morrow, second by Commissioner Hanson to Approve Requisition #8255 WSB for 2020 Geohazard Program. Motion carried unanimously. b. Approve Requisition #8256 Energy Economics, Inc. for 2020 Sonic Nozzle Prover. Mr. Webster presented Requisition #8256 - Energy Economics, Inc. for 2020 Sonic Nozzle Prover. The current meter prover in the Natural Gas Division was purchased in 2000 and has been unsupported since 2004. The prover failed in November 2019 and service and repair parts are unavailable so the prover must be replaced. Energy Economics was the lowest bidder, is a local company in Dodge Center and makes very good equipment. A motion by Commissioner Cheney, second by Commissioner Wendorff to Approve Requisition #8256 Energy Economics, Inc. for 2020 Sonic Nozzle Prover. Motion carried unanimously. c. Approve Requisition #8263 Nelson Technologies, Inc. Mr. Webster presented Requisition #8263 Nelson Technologies, Inc. Would like 4 to purchase commercial and industrial rotary meters with electronic temperature compensation for inventory. This is a capital budget item in 2020. A motion by CommissionerHanson, second by CommissionerMorrowto Approve Requisition #8263 Nelson Technologies, Inc. Motion carried unanimously. d. Approve Requisition #8267- 2020 John Deere 310 SL Tractor Backhoe Mr. Hunstad presented Requisition #8267- 2020 John Deere 310 SL Tractor Backhoe. As part of H 2006 John Deere 310 Tractor Backhoe. A motion by Commissioner Morrow, second by Commissioner Cheney to Approve Requisition #8267- 2020 John Deere 310 SL Tractor Backhoe. Motion carried unanimously. e. Approve Requisition #8274 2020 Chevrolet 2500 HD 4.4 Work Truck Mr. Blake presented Requisition #8274 2020 Chevrolet 2500 HD 4.4 Work production department truck #990. Current truck was ½ ton; this new truck will be ¾ ton since HUC does a lot of hauling and should serve HUC adequately. A motion by Commissioner Wendorff, second by Commissioner Hanson to Approve Requisition #8274 2020 Chevrolet 2500 HD 4.4 Work Truck. Motion carried unanimously. f. Approve Requisition #8278 2020 Chevrolet 1500 Crew Cab 4x4 Work Cab. Mr. Blake presented Requisition #8278 2020 Chevrolet 1500 Crew Cab 4x4 Work tion department truck #542. New truck will also be ½ ton; no towing on this new vehicle is not needed. A motion by Commissioner Morrow, second by Commissioner Hanson to Approve Requisition #8278 2020 Chevrolet 1500 Crew Cab 4x4 Work Cab. Motion carried unanimously. g. Approve Requisition #8280 & #8281 Service Truck #574 Mr. Hunstad presented Requisition #8280 & #8281 Service Truck #574. As part 5 truck for the electric department. The purchase requires two separate requisitions, one for the cab/chassis and one for the service body. A motion by Commissioner Cheney, second by Commissioner Morrow to Approve Requisition #8280 & #8281 Service Truck #574. Motion carried unanimously. h. Approve Requisition #8285 Two Atlas Copco GA26 Rotary Screw Air Compressors Mr. Blake presented Requisition #8285 Two Atlas Copco GA26 Rotary Screw Air Compressors. After installation and commissioning of the new Caterpillar units 6 & 7, HUC discovered when running these two engines with the unit 5 Wartsila engine, there is insufficient instrument control air. The existing instrument air compressor came with the Wartsila purchase and is too small to support the equipment air load for 3 engines online at one time. A motion by Commissioner Morrow, second by Commissioner Cheney to Approve Requisition #8285 Two Atlas Copco GA26 Rotary Screw Air Compressors. Motion carried unanimously. i. Approve Requisition #8286 2020 Chevrolet Silverado MD 4WD Crew Cab and Chassis Mr. Webster presented Requisition #8286 2020 Chevrolet Silverado MD 4WD be replacing vehicle #357/2002 welding truck. A motion by Commissioner Hanson, second by Commissioner Wendorff to Approve Requisition #8286 2020 Chevrolet Silverado MD 4WD Crew Cab and Chassis. Motion carried unanimously. j. Approve Selling Surplus Vehicles Mr. Hunstad presented Selling of Surplus Vehicles. Looking at approval to sell surplus vehicles as replacements come in throughout the year. A motion by Commissioner Hanson, second by Commissioner Cheney to Approve Selling Surplus Vehicles. Motion carried unanimously. k. Approve Reliability Compliance Services Agreement Mr. Lang presented approval of Reliability Compliance Services Agreement. As a 6 as defined by NERC Reliability Standards. Currently, Great River Energy is now GRE has indicated to MRES they are no longer interested in performing the role for MRES and its members. ponsibilities from GRE to MRES and ensure HUC remains compliant with the NERC Reliability Standards. There is no cost to HUC. A motion by Commissioner Morrow, second by Commissioner Hanson to Approve Reliability Compliance Services Agreement. Motion carried unanimously. l. Approve Brownton Electric Meter Reading Agreement GM Carter presented the Brownton Electric Meter Reading Agreement. Currently HUC provides the Natural Gas readings for Brownton and now Brownton is requesting HUC to provide them with the monthly electric meter readings. This system. As part of this arrangement, the City of Brownton will be required to pay their pro-rated share of any sensus costs incurred because of the addition of the meters to our network. Costs would also cover an hour of customer service time to pull in the reads, convert the data into the format needed by Brownton, and send the data file back to do the billing function. This agreement will be renegotiated to are requested to change over time. After discussions, a motion by Commissioner Hanson, second by Commissioner Cheney to Approve Brownton Electric Meter Reading Agreement. Motion carried unanimously. v. Adjourn There being no further business, a motion by Commissioner Cheney, second by Commissioner Morrow to adjourn the meeting at 3:55p.m. Motion carried unanimously. __________________________ Robert Wendorff, Secretary ATTEST: _________________________ Don Martinez, President 7 HUTCHINSON UTILITIES COMMISSION COMBINED DIVISIONS FINANCIAL REPORT FOR JANUARY, 2020 January, 2020 MonthYear to Date 8.33% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Combined Division Customer Revenue$ 3,480,073 $ 3,892,245 $ (412,171)(10.6%)$ 3,480,073$ 3,892,245 $ (412,171)(10.6%)$ 35,819,1169.7% Sales for Resale$ 151,621$ 232,083 $ (80,461) (34.7%)$ 151,621$ 232,083$ (80,461)(34.7%)$ 3,007,2505.0% NU Transportation$ 83,178$ 82,475$ 7030.9%$ 83,178$ 82,475$ 7030.9%$ 898,640 9.3% Electric Division Transfer$ 55,440$ 54,982$ 4580.8%$ 55,440$ 54,982$ 4580.8%$ 665,283 8.3% Other Revenues$ 135,417$ 44,316$ 91,101205.6%$ 135,417$ 44,316$ 91,101205.6%$ 466,207 29.0% Interest Income$ 57,041$ 41,687$ 15,35336.8%$ 57,041$ 41,687$ 15,35336.8%$ 383,456 14.9% TOTAL REVENUES$ 3,962,770 $ 4,347,787 $ (385,017)(8.9%)$ 3,962,770$ 4,347,787 $ (385,017)(8.9%)$ 41,239,9529.6% Salaries & Benefits$ 611,366$ 577,282 $ 34,0845.90%$ 611,366$ 577,282$ 34,0845.9%$ 6,946,8808.8% Purchased Commodities$ 2,000,156 $ 2,375,583 $ (375,426)(15.8%)$ 2,000,156$ 2,375,583 $ (375,426)(15.8%)$ 19,252,47710.4% Transmission$ 137,865$ 184,234 $ (46,369) (25.2%)$ 137,865$ 184,234$ (46,369)(25.2%)$ 2,680,0005.1% Generator Fuel/Chem.$ 5,808$ 7,695$ (1,886)(24.5%)$ 5,808 $ 7,695$ (1,886)(24.5%)$ 825,875 0.7% Depreciation$ 327,083$ 327,083 $ -0.0%$ 327,083$ 327,083$ - 0.0%$ 3,925,0008.3% Transfers (Elect./City)$ 211,040$ 188,434 $ 22,60612.0%$ 211,040$ 188,434$ 22,60612.0%$ 2,532,4758.3% Operating Expense$ 218,765$ 241,711 $ (22,946) (9.5%)$ 218,765$ 241,711$ (22,946)(9.5%)$ 2,605,3138.4% Debt Interest$ 89,542$ 97,334$ (7,792)(8.0%)$ 89,542$ 97,334$ (7,792)(8.0%)$ 1,074,5078.3% TOTAL EXPENSES$ 3,601,626 $ 3,999,355 $ (397,729)(9.9%)$ 3,601,626$ 3,999,355 $ (397,729)(9.9%)$ 39,842,5279.0% NET PROFIT/(LOSS)$ 361,144$ 348,433 $ 12,7123.6%$ 361,144$ 348,433$ 12,7123.6%$ 1,397,42525.8% Combined Divisions - Financial/Operating Ratios JanuaryJanuaryYTD YTD 2020HUC 20202019Change20202019ChangeBudgetTarget Gross Margin %34.4%34.3%0.0%34.4%34.3%0.0%34.6%26% - 28% Operating Income Per Revenue $ (%)7.4%8.9%-1.5%7.4%8.9%-1.5%4.6%1%-4% Net Income Per Revenue $ (%):9.1%8.0%1.1%9.1%8.0%1.1%3.4%0%-1% Notes/Graphs: HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION FINANCIAL REPORT FOR JANUARY, 2020 January, 2020 MonthYear to Date 8.33% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Electric Division Customer Revenue$ 2,030,379$ 2,132,563 $ (102,184)(4.8%)$ 2,030,379$ 2,132,563 $ (102,184)(4.8%)$ 25,627,4487.9% Sales for Resale$ 151,621$ 232,083 $ (80,461)(34.7%)$ 151,621 $ 232,083 $ (80,461) (34.7%)$ 3,007,2505.0% Other Revenues$ 111,442$ 20,628$ 90,814 440.2%$ 111,442 $ 20,628$ 90,814440.2%$ 179,499 62.1% Interest Income$ 29,914 $ 22,620$ 7,29432.2%$ 29,914 $ 22,620$ 7,29432.2%$ 208,456 14.4% TOTAL REVENUES$ 2,323,357$ 2,407,894 $ (84,537)(3.5%)$ 2,323,357$ 2,407,894 $ (84,537) (3.5%)$ 29,022,6538.0% Salaries & Benefits$ 452,379$ 428,903 $ 23,476 5.5%$ 452,379 $ 428,903 $ 23,4765.5%$ 5,074,7598.9% Purchased Power$ 1,159,562$ 1,302,737 $ (143,174)(11.0%)$ 1,159,562$ 1,302,737 $ (143,174)(11.0%)$ 13,480,3328.6% Transmission$ 137,865$ 184,234 $ (46,369)(25.2%)$ 137,865 $ 184,234 $ (46,369) (25.2%)$ 2,680,0005.1% Generator Fuel/Chem.$ 5,808$ 7,695$ (1,886) (24.5%)$ 5,808$ 7,695$ (1,886)(24.5%)$ 825,875 0.7% Depreciation$ 241,667$ 241,667 $ -0.0%$ 241,667 $ 241,667 $ -0.0%$ 2,900,0008.3% Transfers (Elect./City)$ 163,236$ 147,172 $ 16,064 10.9%$ 163,236 $ 147,172 $ 16,06410.9%$ 1,958,8268.3% Operating Expense$ 159,988$ 167,874 $ (7,885) (4.7%)$ 159,988 $ 167,874 $ (7,885)(4.7%)$ 1,654,9439.7% Debt Interest$ 44,471 $ 46,555$ (2,083) (4.5%)$ 44,471 $ 46,555$ (2,083)(4.5%)$ 533,657 8.3% TOTAL EXPENSES$ 2,364,977$ 2,526,835 $ (161,858)(6.4%)$ 2,364,977$ 2,526,835 $ (161,858)(6.4%)$ 29,108,3928.1% NET PROFIT/(LOSS)$ (41,620)$ (118,941)$ 77,321 (65.0%)$ (41,620)$ (118,941)$ 77,321(65.0%)$ (85,739)48.5% January, 2020 MonthYear to Date 8.33% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Electric Division Residential4,344,0254,452,209 (108,184)(2.43%)4,344,0254,452,209 (108,184) (2.43%) 51,590,8898.4% All Electric352,522388,529 (36,007) (9.27%)352,522388,529 (36,007) (9.27%) 2,545,49713.8% Small General1,668,9551,736,677 (67,722) (3.90%)1,668,9551,736,677 (67,722) (3.90%) 18,956,2488.8% Large General6,200,5406,772,660 (572,120)(8.45%)6,200,5406,772,660 (572,120) (8.45%) 79,933,5837.8% Industrial9,731,0009,656,000 75,0000.78%9,731,0009,656,000 75,000 0.78% 129,279,6667.5% Total KWH Sold 22,297,042 23,006,075 (709,033)(3.08%) 22,297,042 23,006,075 (709,033) (3.08%) 282,305,8837.9% Financial/Operating Ratios JanuaryJanuaryYTD YTD 2020HUC 20202019Change20202019ChangeBudgetTarget Gross Margin %25.6%27.4%-1.7%25.6%27.4%-1.7%28.7%24% - 28% Operating Income Per Revenue $ (%)-5.5%-4.3%-1.3%-5.5%-4.3%-1.3%0.8%0%-5% Net Income Per Revenue $ (%):-1.8%-4.9%3.1%-1.8%-4.9%3.1%-0.3%0%-5% Customer Revenue per KWH:$0.0911$0.0927-$0.0016$0.0911$0.0927-$0.0016$0.0903$0.0903 Total Power Supply Exp. per KWH:$0.0733$0.0751-$0.0018$0.0733$0.0751-$0.0018$0.0728$0.0728 Notes/Graphs: Net Loss decreased by $77,321 despite less revenues mostly due to lower purchased power and transmission expenses. Sales for Resale of $151,621 consisted of $2,121 in market sales, $136,000 in capacity sales to SMMPA and $13,500 in capacity sales to AEP. The Transalta contract was finished at the end of 2019. January 2019 Sales for Resale of $232,083 consisted of $427 in market sales, $36,400 in monthly tolling fees from Transalta, $79,256 in Transalta energy sales, and $116,000 in capacity sales to SMMPA. January 2018 Sales for Resale of $338,331 consisted of $17,649 in market sales, $35,600 in Transalta tolling fees, $189,082 in Transalta energy sales, and $96,000 SMMPA capacity sales. Overall Purchased Power decreased by $143,174. MRES purchases decreased by $33 and market purchases/MISO costs decreased by $143,141. January power cost adjustment was $.00675/kwhr bringing in an additional $150,844 in revenue for the month. Last year's power cost adjustment for January 2019 generated $200,493 in additional revenue for the month. HUTCHINSON UTILITIES COMMISSION GAS DIVISION FINANCIAL REPORT FOR JANUARY, 2020 January, 2020 MonthYear to Date 8.33% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Gas Division Customer Revenue$ 1,449,694 $ 1,759,682$ (309,988)(17.6%)$ 1,449,694 $ 1,759,682$ (309,988)(17.6%)$ 10,191,66814.2% Transportation$ 83,178$ 82,475 $ 7030.9%$ 83,178$ 82,475$ 7030.9%$ 898,640 9.3% Electric Div. Transfer$ 55,440$ 54,982 $ 4580.8%$ 55,440$ 54,982$ 4580.8%$ 665,283 8.3% Other Revenues$ 23,975$ 23,688 $ 2871.2%$ 23,975$ 23,688$ 2871.2%$ 286,708 8.4% Interest Income$ 27,126$ 19,067 $ 8,05942.3%$ 27,126$ 19,067$ 8,05942.3%$ 175,000 15.5% TOTAL REVENUES$ 1,639,414 $ 1,939,894$ (300,480)(15.5%)$ 1,639,414 $ 1,939,894$ (300,480)(15.5%)$ 12,217,29913.4% Salaries & Benefits$ 158,987$ 148,379 $ 10,6087.1%$ 158,987$ 148,379 $ 10,608 7.1%$ 1,872,1218.5% Purchased Gas$ 840,594$ 1,072,846$ (232,252)(21.6%)$ 840,594$ 1,072,846$ (232,252)(21.6%)$ 5,772,14514.6% Operating Expense$ 58,777$ 73,837 $ (15,060) (20.4%)$ 58,777$ 73,837$ (15,060)(20.4%)$ 950,370 6.2% Depreciation$ 85,417$ 85,417 $ -0.0%$ 85,417$ 85,417$ -0.0%$ 1,025,0008.3% Transfers (City)$ 47,804$ 41,262 $ 6,54215.9%$ 47,804$ 41,262$ 6,54215.9%$ 573,649 8.3% Debt Interest$ 45,071$ 50,779 $ (5,708)0.0%$ 45,071$ 50,779$ (5,708) (11.2%)$ 540,850 8.3% TOTAL EXPENSES$ 1,236,649 $ 1,472,520$ (235,870)(16.0%)$ 1,236,649 $ 1,472,520$ (235,870)(16.0%)$ 10,734,13511.5% NET PROFIT/(LOSS)$ 402,764$ 467,374 $ (64,610) (13.8%)$ 402,764$ 467,374 $ (64,610)(13.8%)$ 1,483,16427.2% January, 2020 MonthYear to Date 8.33% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Gas Division Residential75,845,36486,651,905 (10,806,541)(12.47%)75,845,36486,651,905 (10,806,541)(12.47%) 422,479,00018.0% Commercial55,336,39159,594,298 (4,257,907)(7.14%)55,336,39159,594,298 (4,257,907)(7.14%) 331,731,00016.7% Industrial104,425,261107,745,048 (3,319,787)(3.08%)104,425,261107,745,048 (3,319,787)(3.08%) 803,079,00013.0% Total CF Sold 235,607,016 253,991,251 (18,384,235)(7.24%) 235,607,016 253,991,251 (18,384,235)(7.24%) 1,557,289,00015.1% Financial/Operating Ratios JanuaryJanuaryYTD YTD 2020HUC 20202019Change20202019ChangeBudgetTarget Gross Margin %46.4%43.1%3.4%46.4%43.1%3.4%49.0%37%-42% Operating Income Per Revenue $ (%)25.2%25.3%0.0%25.2%25.3%0.0%13.8%11%-16% Net Income Per Revenue $ (%):25.4%24.6%0.7%25.4%24.6%0.7%12.6%6%-11% Contracted Customer Rev. per CF:$0.0038$0.0046-$0.0008$0.0038$0.0046-$0.0008$0.0040$0.0040 Customer Revenue per CF:$0.0079$0.0086-$0.0006$0.0079$0.0086-$0.0006$0.0089$0.0089 Total Power Supply Exp. per CF:$0.0036$0.0043($0.0006)$0.0036$0.0043($0.0006)$0.0039$0.0039 Notes/Graphs: Gas usage was down from the prior year due to a warmer January compared to 2019. The decrease in usage as well as larger fuel credits led to a drop of $64,610 in Net Profit. Heating degree days were down around 13%. January's fuel cost credit adjustment was $1.10618/MCF totalling $149,433 for the month. January 2019 credits totalled $94,996 for the month. HUTCHINSONUTILITIESCOMMISSION BALANCE SHEET - CONSOLIDATED JANUARY 31, 2020 ElectricGasTotalTotal Net Change DivisionDivision20202019Total (YTD) Current Assets Cash 6,192,574.99 9,777,291.87 15,969,866.86 17,317,071.38 (1,347,204.52) Petty Cash 680.00 170.00 850.00 850.00 - Capital Expenditures - Five Yr. CIP 2,750,000.00 700,000.00 3,450,000.00 3,450,000.00 - Payment in Lieu of Taxes 1,293,543.00 573,649.00 1,867,192.00 1,601,424.00 265,768.00 Rate Stabilization - Electric 372,736.68 - 372,736.68 372,736.68 - Rate Stabilization - Gas - 651,306.61 651,306.61 651,306.61 - Catastrophic Funds 400,000.00 100,000.00 500,000.00 500,000.00 - Bond Interest Payment 2017 696,442.69 - 696,442.69 697,275.97 (833.28) Bond Interest Payment 2012 - 332,641.64 332,641.64 328,987.49 3,654.15 Debt Service Reserve Funds 522,335.64 2,188,694.02 2,711,029.66 2,711,029.66 - Total Current Assets 12,228,313.00 1 4,323,753.14 26,552,066.14 2 7,630,681.79 (1,078,615.65) Receivables Accounts (net of uncollectible allowances) 2,009,998.42 1,714,273.61 3,724,272.03 4,136,022.34 (411,750.31) Interest 57,982.32 57,982.32 115,964.64 47,264.58 68,700.06 Total Receivables 2,067,980.74 1 ,772,255.93 3,840,236.67 4 ,183,286.92 (343,050.25) Other Assets Inventory 1,450,089.71 456,553.20 1,906,642.91 1,632,711.78 273,931.13 Prepaid Expenses 227,750.74 25,320.25 253,070.99 39,496.87 213,574.12 Sales Tax Receivable 90,811.31 - 90,811.31 33,624.73 57,186.58 Deferred Outflows - Electric 494,053.00 - 494,053.00 494,053.00 - Deferred Outflows - Gas - 164,685.00 164,685.00 164,685.00 - Total Other Assets 2,262,704.76 6 46,558.45 2,909,263.21 2 ,364,571.38 544,691.83 Total Current Assets 16,558,998.50 1 6,742,567.52 33,301,566.02 3 4,178,540.09 (876,974.07) Capital Assets Land & Land Rights 690,368.40 3,899,918.60 4,590,287.00 4,590,287.00 - Depreciable Capital Assets 90,203,357.03 41,684,214.28 131,887,571.31 131,887,622.18 (50.87) Accumulated Depreciation (58,313,050.89) (17,196,822.85) (75,509,873.74) (71,584,873.74) (3,925,000.00) Construction - Work in Progress 17,128,788.50 433,781.11 17,562,569.61 13,036,662.57 4,525,907.04 Total Net Capital Assets 49,709,463.04 2 8,821,091.14 78,530,554.18 7 7,929,698.01 600,856.17 Total Assets 6 6,268,461.54 4 5,563,658.66 1 11,832,120.20 1 12,108,238.10 ( 276,117.90) HUTCHINSONUTILITIESCOMMISSION BALANCE SHEET - CONSOLIDATED JANUARY 31, 2020 ElectricGasTotalTotal Net Change DivisionDivision20202019Total (YTD) Current Liabilities Current Portion of Long-term Debt Bonds Payable 645,000.00 1,455,000.00 2,100,000.00 1,995,000.00 105,000.00 Bond Premium - 185,608.32 185,608.32 185,608.32 - Accounts Payable 2,190,946.80 1,164,191.37 3,355,138.17 3,529,225.38 (174,087.21) Accrued Expenses Accrued Interest 88,942.69 90,141.64 179,084.33 194,667.69 (15,583.36) Accrued Payroll 88,533.57 31,584.27 120,117.84 186,392.77 (66,274.93) Total Current Liabilities 3,013,423.06 2 ,926,525.60 5,939,948.66 6 ,090,894.16 (150,945.50) Long-Term Liabilities Noncurrent Portion of Long-term Debt 2017 Bonds 15,405,000.00 - 15,405,000.00 16,050,000.00 (645,000.00) 2012 Bonds - 11,075,000.00 11,075,000.00 12,530,000.00 (1,455,000.00) Bond Premium 2012 596,649.12 1,082,714.83 1,679,363.95 1,898,429.23 (219,065.28) Pension Liability - Electric 2,700,290.00 - 2,700,290.00 2,700,290.00 - Pension Liability - Electric OPEB 72,192.00 - 72,192.00 72,192.00 - Pension Liability - Nat Gas - 900,097.00 900,097.00 900,097.00 - Pension Liability - Nat Gas OPEB - 24,064.00 24,064.00 24,064.00 - Accrued Vacation Payable 380,134.01 146,202.28 526,336.29 477,451.52 48,884.77 Accrued Severance 81,360.39 33,739.79 115,100.18 106,630.34 8,469.84 Deferred Outflows - Electric 804,800.00 - 804,800.00 804,800.00 - Deferred Outflows - Nat Gas - 268,267.00 268,267.00 268,267.00 - Total Long-Term Liabilities 20,040,425.52 1 3,530,084.90 33,570,510.42 3 5,832,221.09 (2,261,710.67) Net Position Retained Earnings 43,214,612.96 29,107,048.16 72,321,661.12 70,185,122.85 2,136,538.27 Total Net Position 43,214,612.96 2 9,107,048.16 72,321,661.12 7 0,185,122.85 2,136,538.27 Total Liabilities and Net Position 66,268,461.54 4 5,563,658.66 111,832,120.20 1 12,108,238.10 (276,117.90) Hutchinson Utilities Commission Cash-Designations Report, Combined 1/31/2020 Change in Financial Annual Balance, Balance, Cash/Reserve InstitutionInterestJanuary 2020 December 2019 Position Current Interest Rate Savings, Checking, Investmentsvariesvariesvaries 26,552,066.14 25,961,181.38 590,884.76 Total Operating Funds 26,552,066.14 25,961,181.38 590,884.76 Combined Division - Total Funds 26,552,066.14 25,961,181.38 590,884.76 Restricted Funds: Debt Reserve RequirementsBond Covenants - sinking fund 1,029,084.33 764,542.13 264,542.20 Debt Reserve RequirementsBond Covenants -1 year Max. P & I 2,711,029.66 2,711,029.66 - Total Restricted Funds 3,740,113.99 3,475,571.79 264,542.20 Excess Reserves Less Restrictions, Combined 22,811,952.15 22,485,609.59 326,342.56 Designated Funds: Operating ReserveMin 60 days of 2020 Operating Bud. 5,981,005.00 5,981,005.00 - Rate Stabalization Funds 1,024,043.29 1,024,043.29 - PILOT FundsCharter (Formula Only) 1,867,192.00 1,867,192.00 - Catastrophic FundsRisk Mitigation Amount 500,000.00 500,000.00 - Capital Reserves5 Year CIP ( 2020-2024 Fleet & Infrastructure Maintenance) 3,450,000.00 3,450,000.00 - Total Designated Funds 12,822,240.29 12,822,240.29 - Excess Reserves Less Restrictions & Designations, Combined 9,989,711.86 9,663,369.30 326,342.56 Financial/Operating Ratios YEYEYEYEYTDHUC 20162017201820192020Target Debt to Asset32.2%40.2%37.7%35.1%35.3%<50% Current Ratio3.063.363.935.194.87>2.0 RONA2.17%1.82%3.43%2.26%0.36%>0% Notes/Graphs: Change in Cash Balance (From 12/31/14 to 1/31/2020) Month End ElectricElec. ChangeNatural GasGas Change TotalTotal Change 1/31/2020 12,228,313 14,323,753 26,552,066 12/31/2019 12,124,142 104,171 13,837,040 486,713 25,961,181 590,885 12/31/2018 15,559,867 (3,435,725) 12,335,998 1,501,042 27,895,864 (1,934,683) 12/31/2017 23,213,245 (7,653,378) 10,702,689 1,633,309 33,915,934 (6,020,070) 12/31/2016 8,612,801 14,600,444 9,500,074 1,202,615 18,112,875 15,803,059 12/31/2015 6,170,790 2,442,011 9,037,373 462,701 15,208,163 2,904,712 12/31/2014 3,598,821 2,571,969 6,765,165 2,272,208 10,363,986 4,844,177 * 2017's Signifcant increase in cash balance is due to issuing bonds for the generator project. Hutchinson Utilities Commission Cash-Designations Report, Electric 1/31/2020 Change in Financial Annual Balance, Balance, Cash/Reserve InstitutionInterestJanuary 2020 December 2019 Position Current Interest Rate Operating Funds: Savings, Checking, Investmentsvariesvariesvaries 26,552,066.14 25,961,181.38 590,884.76 Total HUC Operating Funds 26,552,066.14 25,961,181.38 590,884.76 Electric Division - Total Funds 12,228,313.00 12,124,141.59 104,171.41 Restricted Funds: Debt Restricted RequirementsBond Covenants - sinking fund 696,442.69 598,221.33 98,221.36 Debt Restricted RequirementsBond Covenants -1 year Max. P & I 522,335.64 522,335.64 - Total Restricted Funds 1,218,778.33 1,120,556.97 98,221.36 Excess Reserves Less Restrictions, Electric 11,009,534.67 11,003,584.62 5,950.05 Designated Funds: Operating ReserveMin 60 days of 2020 Operating Bud. 4,367,899.00 4,367,899.00 - Rate Stabalization Funds$400K-$1.2K 372,736.68 372,736.68 - PILOT FundsCharter (Formula Only) 1,293,543.00 1,293,543.00 - Catastrophic FundsRisk Mitigation Amount 400,000.00 400,000.00 - Capital Reserves5 Year CIP ( 2020-2024 Fleet & Infrastructure Maintenance) 2,750,000.00 2,750,000.00 - Total Designated Funds 9,184,178.68 9,184,178.68 - Excess Reserves Less Restrictions & Designations, Electric 1,825,355.99 1,819,405.94 5,950.05 Financial/Operating Ratios YEYEYEYEYTDAPPA RatioHUC 201620172018201920205K-10K Cust.Target Debt to Asset Ratio (* w/Gen.)16.7%35.4%35.7%34.4%34.8%50.1%<50% Current Ratio3.574.363.635.414.932.43>2.0 RONA-0.4%-0.6%-0.3%-0.5%-0.1%NA>0% Notes/Graphs: Hutchinson Utilities Commission Cash-Designations Report, Gas 1/31/2020 Change in Financial Annual Balance, Balance, Cash/Reserve InstitutionInterestJanuary 2020 December 2019 Position Current Interest Rate Operating Funds: Savings, Checking, Investmentsvariesvariesvaries 26,552,066.14 25,961,181.38 590,884.76 Total HUC Operating Funds 26,552,066.14 25,961,181.38 590,884.76 Gas Division - Total Funds 14,323,753.14 13,837,039.79 486,713.35 Restricted Funds: Debt Restricted RequirementsBond Covenants - sinking fund 332,641.64 166,320.80 166,320.84 Debt Restricted RequirementsBond Covenants -1 year Max. P & I 2,188,694.02 2,188,694.02 - Total Restricted Funds 2,521,335.66 2,355,014.82 166,320.84 Excess Reserves Less Restrictions, Gas 11,802,417.48 11,482,024.97 320,392.51 Designated Funds: Operating ReserveMin 60 days of 2020 Operating Bud. 1,613,106.00 1,613,106.00 - Rate Stabalization Funds$200K-$600K 651,306.61 651,306.61 - PILOT FundsCharter (Formula Only) 573,649.00 573,649.00 - Catastrophic FundsRisk Mitigation Amount 100,000.00 100,000.00 - Capital Reserves5 Year CIP ( 2020-2024 Fleet & Infrastructure Maintenance) 700,000.00 700,000.00 - Total Designated Funds 3,638,061.61 3,638,061.61 - Excess Reserves Less Restrictions & Designations, Gas 8,164,355.87 7,843,963.36 320,392.51 Financial/Operating Ratios YEYEYEYEYTDHUC 20162017201820192020APGA RatioTarget Debt to Asset51.2%47.6%40.7%36.2%36.1%TBD<50% Current Ratio2.592.744.334.984.80TBD>2.0 RONA5.6%5.0%8.3%6.6%1.0%TBD>0% Notes/Graphs: HUTCHINSON UTILITIES COMMISSION Investment Report For the Month Ended January 31, 2020 InterestCurrentDate ofDate ofParCurrentPurchaseUnrealizedPremiumNext InstitutionDescriptionRateYTMPurchaseMaturityValueValueAmountGain/(Loss)(Discount)Call Date Wells FargoMoney Market0.840%0.840%NANA - 53,651.53 - - -N/A Wells FargoCD's2.550%2.550%08/21/201802/21/2020 245,000.00 245,151.90 245,000.00 151.90 -N/A Wells FargoCD's2.450%2.450%03/27/201903/27/2020 245,000.00 245,347.90 245,000.00 347.90 -N/A Wells FargoCD's1.900%1.900%08/21/201908/23/2021 174,000.00 174,605.52 174,000.00 605.52 -N/A Wells FargoCD's2.500%2.500%04/02/201904/05/2021 245,000.00 247,435.30 245,000.00 2,435.30 -N/A Wells FargoCD's2.000%2.000%04/07/201610/07/2021 245,000.00 245,169.05 245,000.00 169.05 -04/07/2020 Wells FargoCD's2.000%2.000%10/07/201912/31/2020 245,000.00 245,208.25 245,000.00 208.25 -04/07/2020 Wells FargoCD's2.000%2.000%01/30/202001/30/2024 245,000.00 245,490.00 245,000.00 490.00 -07/30/2020 Wells FargoCD's2.000%2.000%08/29/202008/22/2022 200,000.00 200,000.00 200,000.00 - -03/29/2020 Wells FargoCD's1.700%1.700%12/30/201907/08/2020 60,000.00 60,025.20 60,000.00 25.20 -N/A Wells FargoCD's2.000%2.000%01/10/202001/24/2025 245,000.00 245,215.60 245,000.00 215.60 -04/10/2020 Wells FargoCD's2.100%2.100%01/30/202007/30/2024 245,000.00 245,676.20 245,000.00 676.20 -07/30/2020 Wells FargoCD's2.000%2.000%01/29/202001/29/2024 245,000.00 245,470.40 245,000.00 470.40 -07/29/2020 Wells FargoCD's1.700%1.700%01/31/202005/03/2021 245,000.00 245,149.45 245,000.00 149.45 -N/A Wells FargoCD's1.750%1.750%01/29/202007/29/2021 245,000.00 245,294.00 245,000.00 294.00 -N/A Broker Total25.5% 3,129,000.00 3,188,890.30 3,129,000.00 6,238.77 - Cetera Investment ServicesMoney Market0.030%0.030%N/AN/A - 281.85 - - -N/A Cetera Investment ServicesMunicipal Bonds2.995%2.073%03/07/201607/01/2020 250,000.00 251,267.50 260,835.21 (9,567.71) 10,835.21N/A Cetera Investment ServicesMunicipal Bonds2.750%1.881%03/07/201608/01/2020 250,000.00 251,487.50 259,820.00 (8,332.50) 9,820.00N/A Cetera Investment ServicesMunicipal Bonds2.300%1.715%12/11/201710/01/2020 100,000.00 100,367.00 101,595.00 (1,228.00) 1,595.00N/A Cetera Investment ServicesMunicipal Bonds2.875%2.121%04/29/201609/01/2021 250,000.00 254,477.50 259,467.50 (4,990.00) 9,467.50N/A Cetera Investment ServicesMunicipal Bonds3.751%2.399%04/29/201611/01/2021 250,000.00 256,570.00 267,330.00 (10,760.00) 17,330.00N/A Cetera Investment ServicesMunicipal Bonds3.139%2.190%12/11/201709/01/2021 300,000.00 306,222.00 310,116.00 (3,894.00) 10,116.00N/A Cetera Investment ServicesMunicipal Bonds3.436%3.436%12/20/201812/15/2021 50,000.00 48,104.50 45,155.00 2,949.50 (4,845.00) N/A Cetera Investment ServicesMunicipal Bonds2.655%2.208%12/11/201703/01/2022 300,000.00 306,420.00 305,314.92 1,105.08 5,314.92N/A Cetera Investment ServicesMunicipal Bonds3.000%3.118%12/20/201808/01/2022 50,000.00 51,499.00 50,377.67 1,121.33 377.67N/A Cetera Investment ServicesMunicipal Bonds3.633%3.116%12/20/201809/01/2022 250,000.00 260,882.50 257,217.48 3,665.02 7,217.48N/A Cetera Investment ServicesMunicipal Bonds3.240%3.240%11/17/201702/15/2023 80,000.00 75,513.60 69,633.48 5,880.12 (10,366.52) N/A Cetera Investment ServicesMunicipal Bonds3.650%3.004%12/20/201802/01/2023 250,000.00 262,112.50 256,165.00 5,947.50 6,165.00N/A Cetera Investment ServicesMunicipal Bonds3.075%3.236%12/20/201806/01/2023 50,000.00 51,800.50 49,746.15 2,054.35 (253.85) N/A Cetera Investment ServicesMunicipal Bonds2.500%3.181%12/20/201808/01/2023 35,000.00 35,957.25 34,320.05 1,637.20 (679.95) N/A Cetera Investment ServicesMunicipal Bonds3.400%3.148%12/20/201811/01/2023 125,000.00 129,853.75 126,376.25 3,477.50 1,376.25N/A Cetera Investment ServicesMunicipal Bonds3.400%3.148%12/20/201811/01/2023 65,000.00 67,523.95 65,715.65 1,808.30 715.65N/A Cetera Investment ServicesMunicipal Bonds1.862%1.862%01/22/202011/01/2023 150,000.00 139,494.00 139,866.00 (372.00) (10,134.00) N/A Cetera Investment ServicesMunicipal Bonds5.290%2.724%04/18/201906/01/2023 260,000.00 287,016.60 291,059.96 (4,043.36) 31,059.96N/A Cetera Investment ServicesMunicipal Bonds2.854%3.173%12/20/201802/01/2024 100,000.00 103,838.00 99,605.96 4,232.04 (394.04) N/A Cetera Investment ServicesMunicipal Bonds2.977%3.246%12/20/201803/15/2024 250,000.00 259,962.50 248,743.99 11,218.51 (1,256.01) N/A Cetera Investment ServicesMunicipal Bonds1.940%1.821%01/13/202005/01/2024 65,000.00 65,567.45 65,570.70 (3.25) 570.70N/A Cetera Investment ServicesMunicipal Bonds2.528%1.918%01/13/202012/01/2024 100,000.00 102,413.00 102,999.53 (586.53) 2,999.53N/A Cetera Investment ServicesMunicipal Bonds3.922%3.429%12/20/201812/01/2024 204,000.00 220,181.28 257,122.49 (36,941.21) 53,122.49N/A Cetera Investment ServicesMunicipal Bonds5.742%3.658%04/11/201908/01/2024 430,000.00 476,121.80 555,382.50 (79,260.70) 125,382.50N/A Cetera Investment ServicesMunicipal Bonds4.400%3.221%04/11/201907/01/2025 500,000.00 544,025.00 539,101.11 4,923.89 39,101.1107/01/2023 Cetera Investment ServicesMunicipal Bonds5.640%3.007%04/18/201908/15/2025 205,000.00 181,824.75 169,737.95 12,086.80 (35,262.05) N/A Cetera Investment ServicesMunicipal Bonds3.743%2.740%04/18/201909/15/2025 215,000.00 233,309.40 228,334.53 4,974.87 13,334.53N/A Cetera Investment ServicesMunicipal Bonds3.379%1.934%08/19/201910/01/2025 310,000.00 330,574.70 339,739.18 (9,164.48) 29,739.18N/A Cetera Investment ServicesMunicipal Bonds4.250%3.258%04/11/201901/01/2026 500,000.00 539,195.00 529,769.03 9,425.97 29,769.03N/A Cetera Investment ServicesMunicipal Bonds6.690%3.356%04/18/201904/15/2026 60,000.00 51,574.80 47,545.20 4,029.60 (12,454.80) N/A Cetera Investment ServicesMunicipal Bonds3.250%2.903%04/18/201908/01/2026 500,000.00 526,260.00 514,790.69 11,469.31 14,790.69N/A Cetera Investment ServicesMunicipal Bonds2.150%2.203%07/01/201912/01/2026 40,000.00 40,326.40 40,150.64 175.76 150.64N/A Cetera Investment ServicesMunicipal Bonds2.350%2.191%07/01/201912/01/2026 500,000.00 512,735.00 505,385.00 7,350.00 5,385.00N/A Cetera Investment ServicesMunicipal Bonds2.375%1.816%09/04/201912/01/2026 90,000.00 91,052.10 93,395.70 (2,343.60) 3,395.70N/A Cetera Investment ServicesMunicipal Bonds3.000%1.991%08/19/201902/01/2027 50,000.00 53,222.00 53,551.00 (329.00) 3,551.00N/A Cetera Investment ServicesMunicipal Bonds3.150%2.034%08/19/201903/15/2027 100,000.00 108,747.00 109,138.50 (391.50) 9,138.50N/A Cetera Investment ServicesMunicipal Bonds3.332%3.120%04/18/201904/15/2027 500,000.00 538,635.00 507,783.94 30,851.06 7,783.94N/A Cetera Investment ServicesMunicipal Bonds3.553%2.289%08/19/201905/01/2027 55,000.00 59,187.15 60,468.04 (1,280.89) 5,468.0405/01/2026 Cetera Investment ServicesMunicipal Bonds3.865%2.470%08/19/201905/01/2027 55,000.00 59,599.10 60,986.48 (1,387.38) 5,986.4805/01/2025 Cetera Investment ServicesMunicipal Bonds2.817%2.817%09/25/201910/01/2027 35,000.00 27,603.10 27,969.55 (366.45) (7,030.45) 05/01/2025 Cetera Investment ServicesMunicipal Bonds3.230%1.828%08/19/201905/15/2027 145,000.00 158,054.35 160,827.31 (2,772.96) 15,827.31N/A Cetera Investment ServicesMunicipal Bonds3.270%2.141%08/19/201903/15/2028 155,000.00 167,820.05 60,468.04 107,352.01 (94,531.96) 09/15/2027 Cetera Investment ServicesMunicipal Bonds2.974%2.574%11/07/201904/01/2028 75,000.00 78,737.25 77,253.00 1,484.25 2,253.00N/A Cetera Investment ServicesMunicipal Bonds3.140%2.004%08/19/201908/01/2028 500,000.00 538,040.00 547,105.00 (9,065.00) 47,105.0008/01/2027 Cetera Investment ServicesMunicipal Bonds3.000%1.942%08/19/201906/01/2029 115,000.00 125,458.10 125,961.80 (503.70) 10,961.80N/A Broker Total74.5% 8,919,000.00 9,330,915.78 9,278,998.18 51,635.75 359,998.18 TOTAL INVESTMENTS100.0%$ 12,048,000.00$ 12,519,806.08$ 12,407,998.18$ 57,874.52$ 359,998.18 PORTFOLIO BY PRODUCT TYPEMATURITY SCHEDULE 1/31/2020% of12/31/2019% ofMonthlyMaturityCurrent Value% Product TypeTotal ValueTotalTotal ValueTotalChangeLess than 1 year$1,452,788.6311.6% Money Market$53,933.380.4%$23,166.470.2%$30,766.911 - 2 years2,023,027.3216.2% CD's3,135,238.7725.0%2,153,113.7617.5%982,125.012 - 3 years818,801.506.5% Government Bonds0.000.0%1,024,795.008.3%(1,024,795.00)3 - 4 years 1,294,742.5510.3% Municipal Bonds9,330,633.9374.5%9,126,269.4674.0%204,364.474 - 5 years1,964,465.8315.7% TOTAL$12,519,806.08100.0%$12,327,344.69100.0%$192,461.395+ years4,965,980.2539.7% TOTAL$12,519,806.08100.0% /5γƭ aƚƓĻǤ ağƩƉĻƷυЍͲВЏЎͲВБЉ υЎͲЉЉЉͲЉЉЉ͵ЉЉ ЋЎ͵Љі Љ͵Ѝі υЍͲЎЉЉͲЉЉЉ͵ЉЉ υЍͲЉЉЉͲЉЉЉ͵ЉЉ υЌͲЎЉЉͲЉЉЉ͵ЉЉ υЌͲЉЉЉͲЉЉЉ͵ЉЉ υЋͲЎЉЉͲЉЉЉ͵ЉЉ υЋͲЉЋЌͲЉЋА υЊͲВЏЍͲЍЏЏ υЋͲЉЉЉͲЉЉЉ͵ЉЉ υЊͲЍЎЋͲАБВ υЊͲЎЉЉͲЉЉЉ͵ЉЉ υЊͲЋВЍͲАЍЌ υБЊБͲБЉЋ υЊͲЉЉЉͲЉЉЉ͵ЉЉ υЎЉЉͲЉЉЉ͵ЉЉ υЉ͵ЉЉ DƚǝĻƩƓƒĻƓƷ .ƚƓķƭ \[Ļƭƭ ƷŷğƓ ЊЊ Ώ Ћ ǤĻğƩƭЋ Ώ Ќ ǤĻğƩƭЌ Ώ Ѝ ǤĻğƩƭЍ Ώ Ў ǤĻğƩƭЎњ ǤĻğƩƭ Љ͵Љі ǤĻğƩ aǒƓźĭźƦğƌ .ƚƓķƭ АЍ͵Ўі ELECTRIC DIVISION Operating Revenue January 2020 CLASSAMOUNTKWH$/KWH Street Lights$2.5647$0.05447 Electric Residential Service$461,533.634,344,025$0.10625 All Electric Residential Service$34,585.17352,522$0.09811 Electric Small General Service$172,104.321,668,955$0.10312 Electric Large General Service$590,207.466,200,540$0.09519 Electric Large Industrial Service$771,946.259,731,000$0.07933 Total$2,030,379.39 22,297,089$0.09106 Power Adjustment$0.00675 Rate Without Power Adjustment$0.08431 Electric Division Year-to-Date 2020 $ Amount2019 $ Amount2020 KWH/102019 KWH/10 2,600,000 2,400,000 2,200,000 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Street LightsResidentialAll Elec.Small Gen.Large Gen.LargeFor Resale Total Resid.Srv.Srv.Industrial NOTE: Sales for resale includes capacity sales, market sales and Transalta sales. NATURAL GAS DIVISION Operating Revenue JANUARY 2020 CLASSAMOUNTMCF$/MCF Residential$600,108.5275,845$7.91230 Commercial$434,218.5655,336$7.84695 Large Industrial$30,798.663,461$8.89877 Large Industrial Contracts$384,568.14100,964$3.80896 Total$1,449,693.88235,606$6.15304 Fuel Adjustment-$1.11000 Rate Without Fuel Adjustment$7.26304 Natural Gas Division Year-to-Date 2020 $ Amount2019 $ Amount2020 MCF2019 MCF 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Gas ResidentialGas CommercialLarge IndustrialLarge Industrial Total Contracts HUTCHINSON UTILITIES COMMISSION Board Action Form Agenda Item: Review Policies Presenter: Agenda Item Type: Jeremy Carter Review Policies Time Requested (Minutes): 5 Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As part of HUC's standard operating procedures, a continual policy review is practiced. This month, the following policies were reviewed and no changes are recommended on these policies at this time: i. Section 2 of Exempt Handbook ii. Section 2 of Non-Exempt Handbook BOARD ACTION REQUESTED: None Fiscal Impact: Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: EXEMPT SECTION 2 ADMINISTRATION OF PERSONNEL POLICIES The Commission approves personnel policies intending uniform administration of personnel matters of the Utilities. The Commission may supplement, amend and/or rescind the policies to assure that they will remain practical, useful and current. In approving personnel policies, the Commission has made every effort to be as reasonable and practical as possible. Final responsibility for the enforcement of the policies shall rest with the Commission. The Commission however, has delegated to the General Manager the responsibility and authority for the enforcement of all personnel policies. The General Manager, in turn, delegates certain responsibilities and authority to the Staff as deemed advisable in order to carry out the personnel policies. The General Manager, however, remains accountable to the Commission. If the Commission has not clearly delegated its authority in a certain manner, the Commission retains authority to determine the appropriate action. These personnel policies govern all Utilities employees and apply to all cases except where a policy contained herein conflicts with a Union Contract, or other employment contract, or past practice, in which case the Union Contract, or other employment contract, or past practice shall govern. S AVINGS C LAUSE If any provision of this Handbook is declared by proper legislative, administrative or judicial authority to be unlawful, unenforceable or not in accordance with applicable Civil Service rules, or law, all other provisions of this Handbook shall remain in full force and effect for the duration of this Handbook. E QUAL E MPLOYMENT O PPORTUNITY HUC is committed to providing equal opportunity in all areas of employment, including, but not limited to recruitment, hiring, demotion, promotion, transfer, recruitment, selection, lay-off, disciplinary action, termination, compensation and selection for training. In accordance with Minnesota State Statute 363A, HUC will not discriminate against any employee or job applicant on the basis of race, color, creed, religion, national origin, ancestry, sex, sexual orientation, disability, age, marital status, genetic information, status with regard to public assistance, veteran status, familial status, or local human rights commission activity. H IRING to hire qualified applicants through internal employee promotion and external recruitment if appropriate. The General Manager has the authority to hire all employees and must approve all hiring recommendations. Final interviews for the General Manager position will be conducted by the Commissioner Board with the assistance of the Human Resources Director. Final interviews for Director positions will be conducted by the General Manager, President of the Commission and Human Resources Director. P ROBATIONARY P ERIOD U PON H IRING A newly hired exempt employee shall serve a nine (9) month probationary period during which the employee shall have the opportunity to demonstrate abilities and work performance. During this qualifying period, the Director, Manager or Supervisor should discuss with the employee, the -workers. The General ithout notice and without cause at any time during the probationary period. The General Manager may choose to extend an New full-time employees are required to sign the acknowledgement in Appendix B when they begin employment. T EMPORARY E MPLOYEES Temporary employees are required to sign the acknowledgement in Appendix C when they begin employment. The General Manager must approve employment of a temporary worker for longer than 14 consecutive weeks. The responsible Director or Manager must inform the General Manager of the desire to employ a temporary worker longer than 14 weeks. L AYOFFS HUC retains its right to eliminate positions within the organization if the Commission deems it V OLUNTARY L EAVE OF A BSENCE HUC may request employees to voluntarily take a leave of absence without pay for a specified period of time. E MPLOYMENT OF R ELATIVES No applicant or employee shall receive preferential consideration because of his/her relationship to an HUC employee, a Commission member, a Hutchinson City Council member or other City employees and officials. Any HUC employee who extends such preferential treatment is subject to discipline. Immediate family members may be employed by HUC provided there is no direct report relationship. No member of the immediate family of the General Manager or of a current member of the Commission may be employed by HUC. A former Commission member may not be hired as an employee of HUC for two years after the M EMBERSHIP/D UES/C ONVENTIONS Employees are encouraged to join and participate in professional and technical associations, which are expected to enhance job performance. HUC will pay the association dues if membership relates of membership dues. The General Manager must approve attendance at association meetings and/or conventions. Attendance shall be limited to one major conference per year. This limitation does not apply to workshops, seminars and courses, which HUC directs employees to attend. HUC will pay the attendance fee for pre-approved meetings and expenses incurred. D ATA P RACTICES A DVISORY Employee records are maintained by Human Resources (or the Administrative Coordinator). Personnel data is retained in personnel files, finance files, and benefit/medical files. Information is used to administer employee salary and benefit programs, process payroll, complete state and federal reports, document employee performance, etc. Employees have the right to know what data is retained, where it is kept, and how it is used. All employee data will be received, retained, and disseminated according to the Minnesota Government Data Practices Act. Media Requests: All HUC employees have a responsibility to help communicate accurate and timely information to the public in a professional manner. Requests for private data or information te department. Any employee who identifies a mistake in reporting should bring the error to the General Manager utilities role or in a personal capacity, employees must comply with all laws related to trademark, copyright, software use, etc. With the exception of routine events and basic information that is readily available to the public, all requests for interviews or information from the media are to be routed through the General Manager. No HUC employee is authorized to speak on behalf of HUC without prior authorization from the General Manager or his designee. Media requests include anything intended to be published or viewable to others in some form such as television, radio, newspapers, newsletters, social media sites, and web sites. When responding to media requests, employees should follow these steps: 1. If the request is for routine or public information (such as a meeting time or agenda) provide the information and notify the General Manager of the request. 2. If the request is regarding information about HUC personnel, potential litigation, controversial issues, an opinion on a HUC matter, or if an employee is unsure if the estion, forward the request to the General Manager. An that issue. Let me take some basic information and submit your request to the appropriate person who will get bac All news releases concerning HUC personnel will be the responsibility of the General Manager. When/if the General Manager authorizes a staff person to communicate on behalf of HUC in interviews, publications, news releases, on social media sites, and related communications, employees must: Identify themselves as representing HUC. Account names on social media sites must be clearly connected to HUC and approved by the General Manager. All information must be respectful, professional and truthful. Corrections must be issued when needed. belong in official statements. One exception is communications related to promoting a service. Employees need to notify the General Manager if they will be using their personal technology (cell phones, home computer, cameras, etc.) for HUC business. Employees should be aware that the data transmitted or stored may be subject to the Data Practices Act. It is important for HUC employees to remember that the personal communications of employees may reflect on HUC, especially if employees are commenting on HUC business. The following guidelines apply to personal communications including various forms such as social media (Facebook, Twitter, blogs, YouTube, etc.), letters to the editor of newspapers, and personal endorsements. Remember that what you write is public, and will be so for a long time. It may also be spread to large audiences. Use common sense when using email or social media sites. It is a good idea to refrain from sending or posting information that you would not want your boss or other employees to read, or that you would be embarrassed to see in the newspaper. HUC expects its employees to be truthful, courteous and respectful towards supervisors, co-workers, citizens, customers and other persons associated with HUC. Do not engage in name-calling or personal attacks. If you publicize something related to HUC business, identify yourself and use a disclaimer HUC resources, working time, or official positions cannot be used for personal profit or business interests, or to participate in personal political activity. Personal social media account name or email names should not be tied to HUC. C OMPLAINT/G RIEVANCE P ROCEDURE complaints and grievances. An employee may grieve any alleged violation of a written or verbal policy or procedure, disciplinary action other than an oral reprimand, or unsafe practice. Prior to initiating a grievance, an employee must discuss the complaint with the immediate Supervisor. If the complaint cannot be resolved informally through such discussion with the Director, Manager or Supervisor, the employee may choose to file a written grievance. The grievance must be filed with the Human Resources Director within ten (10) working days after the incident-giving rise to the grievance. The Human Resources Director shall attempt to resolve the grievance and shall provide the employee a written response no later than five (5) working days following receipt of the grievance. If the employee is dissatisfied with the Human Resource ievance with the General Manager within five the complaint or grievance and shall provide the employee a written response not later than five (5) days following the receipt of the complaint. grievance before the Hutchinson Utilities Commission. The Hutchinson Utilities Commission may choose to appoint an independent hearing officer to hear the grievance. An employee presenting a complaint or grievance shall not be subject to retaliation or reprisal. E MPLOYEE C ONDUCT All HUC employees are expected to conduct themselves in a manner that creates a work environment enabling employees to work effectively and to promote positive customer relations. HUC employees are required to adhere to the following standards of conduct while on the job. To behave in a courteous, business-like manner and to comply with HUC policies and work rules. Refrain from any and all action, which may be detrimental to the safety or work of other employees or to the goals of HUC. To communicate openly and honestly with management, other employees, and the public. To share responsibility for personal development and growth. To continually strive for excellence in work product and habits. D ISCIPLINE In general, HUC employees shall be subject to disciplinary action for failing to fulfill their duties and responsibilities, including observance of work rules approved by the Commission. It is the policy of the Commission to administer discipline fairly, without discrimination, and for just cause. The employee may use the grievance procedure with respect to any disciplinary action believed to be unjust or disproportionate to the alleged offense. The General Manager, Director or Manager shall investigate any allegation on which disciplinary action might be based before disciplinary action is taken. The Commission supports the concept of progressive discipline but expressly reserves the right to impose various levels of discipline depending on the nature of the offense. Staff Personnel may impose oral and written reprimands. Only the General Manager may impose a suspension without pay, letter in lieu of suspension, demotion, or discharge. Notices of oral reprimand, written reprimand, suspension without pay, demotion, or discharge will be documented in written form and will state the reason(s) for the action taken. The employee shall personnel file. The following are examples of disciplinary action but do not constitute an exclusive list of possibilities and may be taken in any order or not used at all. These examples and their descriptions A Oral reprimand. An oral notice advising an employee of inappropriate conduct and expected corrective action. B Written reprimand. A written notice advising an employee of inappropriate conduct. A written reprimand should describe in detail the behavior to be corrected, describe past actions taken by the supervisor to correct the problem, give direction and orders for the future including timetables and goals for improvement when appropriate, and specify consequences of repeating the inappropriate behavior. The employee will be given a copy of the reprimand and sign the original acknowledging receipt of the reprimand. The signature of the employee does not signify agreement with the reprimand. The reprimand C Prior to the suspension or as soon after as possible, the employee will be notified in writing of the reason for the suspension and its length. There are two forms of suspension: suspension as discipline and suspension pending investigation. An employee receiving a suspension as discipline may not be paid, may not accrue vacation, holiday or sick leave benefits during the suspension, and may not use paid time while suspended. An employee suspended pending investigation of allegations will have a copy of each written statement placed in the personnel file and will be paid during the investigation. If the allegations prove false, the statement will be removed. An employee placed on investigatory suspension should be notified as quickly as reasonably possible of the action taken regarding employment. D Demotion. Placement of an employee in a lower level position. E Discharge. The General Manager may discharge any employee, but if the employee has completed the probationary period, a dismissal will be made only for just cause. A dismissed employee will be notified by the previous posting of a summary of Minnesota Statute Sections 181.931 to 181.935 or by furnishing the terminated employee a copy of those statutes at termination that the employee has a right to make a written request for HUC reason for termination. If requested, HUC will provide reasons, in writing, within five working days. This notice will also contain a statement indicating that the employee may respond to the charges both orally and in writing and may appear personally before the official having authority to make or recommend the final decision. evidence of any of the following: A Incompetence or inefficiency in the performance of duties. B Negligence or carelessness in the performance of duty, such as in the handling or control of municipal property, equipment, or funds and failure to observe safety rules and regulations. C Offensive or inappropriate conduct or language toward Utilities employees or other persons. D the appointing authority. E Acceptance of a fee, gift, or other valuable item or benefit in the course of, or as a result s work. This limitation is not intended to prohibit the acceptance of articles of negligible value, which are distributed generally, or to prohibit employees from accepting social courtesies, which promote good public relations. This prohibition is intended to prevent or discourage relationships, which may be construed as evidence of favoritism, coercion, unfair advantage, or collusion. Employees may accept food and refreshments in such instances as a luncheon, dinner meeting, or inspection tour in conjunction with HUC business. F Conviction of a crime, which affects or relates to the performance of assigned duties. G Using, threatening or attempting to use, political influence or unethical pressure to influence a decision on a promotion, transfer, leave of absence, increased compensation, other benefit, or any other matter in which the employee has an interest. Unethical pressure includes offers of gifts or other special benefits, coercion, collusion, threats of blackmail, requests for favoritism, and use of unfair advantage. H Absence from work without prior approval in accordance with this policy. I During assigned work schedules, (1) consuming or being under the influence of alcoholic beverages, (2) having the odor of an alcoholic beverage on the breath, or (3) consuming or being under the influence of a controlled substance, other than one prescribed by a physician, which does not impair the ability to perform assigned duties. J Tardiness or abuse of sick leave privileges. K Theft of public property, pilferage, or other unauthorized use or taking of property. L Sexual harassment. M Discrimination against or harassment of any HUC employee at any time, or any other person during work hours, based on race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, veterans status, disability, or age. N Performance of personal or other non-HUC work related matters during work hours. O Violation of the HUC P Engaging in a conflict of interest or performing public duties in a situation where the employee has a conflict of interest. Q Violations of the provisions of this Handbook and/or policies. R Horseplay, loafing or sleeping on the job. S Proven dishonesty in the performance of duties. T Acts or threats of physical violence directed toward HUC employees. U Unauthorized use or release of confidential, sensitive or privileged information. V As a supervisor, knowingly permitting another employee to violate this policy or other work rules. W Acting or failing to act in a manner not otherwise specified that tends to lower discipline or morale among HUC employees, brings or tends to bring discredit to the HUC, its employees, or that adversely affects the prompt, courteous and efficient provisions of public services. Freedom of speech protected by the First Amendment shall not be a basis for discipline. X Unauthorized possession or use of firearms or hazardous materials on HUC time or property. Y Refusal, during working hours, to submit to a Breathalyzer or other drug test required by law. C ONFLICT OF I NTEREST Employees must notify their Director or Manager of any direct or indirect financial interest they have in any contract with HUC, any interest they have in a contractor supplying HUC, or any such interest they may have with any entity competing with HUC, and all such notifications shall be forwarded to the General Manager. Employees who do not report to a Director or Manager shall directly notify the General Manager. Any employee with such a financial interest may not work outside financial interest, unless the interest has been disclosed, and deemed acceptable by HUC management. I NTELLECTUAL P ROPERTY Assignment: All inventions that are: (a) developed using equipment, supplies, facilities or trade secrets of HUC; or (b) result from work performed by an employee of HUC; or hereby assigned by the employee to HUC. If necessary, the employee will assist HUC in the prosecution and issuance of patents, copyrights and other proprietary rights necessary to protect inventions that are developed. Disclosure: While employed by HUC, the employee will promptly inform HUC of the full details of all inventions, discoveries, improvements and innovations, whether or not patentable, copyrightable or otherwise protectable, that the employee conceives, completes or reduces to practice (whether jointly or with others) and which: (a) relate to HUC's present or prospective business, or actual or anticipated business and business models; or (b) result from any work that the employee does using any equipment, facilities, materials, trade secrets or personnel of HUC; or (c) result from, or are suggested by, any work that the employee may do for HUC. The employee will inform HUC within 30 days of the adoption of this policy of all previous inventions, improvements or discoveries actually made or copyright registration or patent applications filed prior to the incorporation of this policy. Inventions, improvements or discoveries not made known to HUC within 30 days of the adoption of this policy shall be deemed to have been made while this policy was in effect. Confidentiality: From time to time, HUC may develop, and employees may have exposure to, formulas, programs, devices, techniques or processes that have been designated by HUC as confidential or proprietary information of HUC. The employee shall not directly or indirectly disclose, furnish, or make accessible to any person or other entity any confidential or proprietary information of HUC that the employee developed or obtained while the employee was employed by HUC. As required by Minnesota law, this policy does not apply to an invention for which no equipment, supplies, facility or trade secret information of HUC was used and which was developed entirely on the employee's own time and (1) does not relate (a) directly to the business of HUC or (b) to HUC's actual or demonstrably anticipated research or development, or (2) which does not result from any work performed by the employee for HUC. O THER E MPLOYMENT loyee holds. Employees must inform their Director or Manager of any work they perform for profit outside of employment, and all such notifications shall be forwarded to the General Manager. Employees who do not report to a Director or Manager shall directly inform the General Manager. Also, employees are expected to be mentally alert and physically able to perform their Utility jobs. Employees may not work on their outside employment while on duty with HUC nor may any HUC property or equipment be used to conduct such business at any time. L ICENSE R EQUIREMENTS FOR U TILITY V EHICLE O PERATION Prio approved. This is a condition of employment if operation of a vehicle is an essential part of an An employee whose job requires operating a motor vehicle must possess a valid Minnesota must immediately inform the e General Manager. The General Manager shall take appropriate action up to and including discharge. S MOKING The HUC observes and supports the Minnesota Clean Indoor Air Act. All HUC buildings and vehicles, in their entirety, shall be designated as tobacco free, meaning that smoking in any form -cigarettes is prohibited while in a HUC facility or vehicle. Smoking of any kind, including pipes, cigars, cigarettes, vaping with e-cigarettes and the use of chewing tobacco is prohibited for employees while on duty. Employees 18 and over are allowed to smoke only during their breaks and lunch, and only in areas designated for that purpose. Per City of Hutchinson ordinance, smoking is prohibited in public places and places of work and within 15 feet of entrances, exists, open windows and ventilation intakes of public places and places of work. A LCOHOL OR D RUGS Possession or consumption of alcohol or controlled substances is prohibited while on-duty or on/in any HUC equipment or property. An employee who reports to work incapacitated or whose performance is impaired through the use of alcohol or controlled substances is subject to disciplinary action up to and including discharge. All HUC erform a maintenance or emergency function on a natural gas pipeline regulated by 49 CFR Parts 192, 193 or 195 must comply with the Total Compliance Solutions Drug and Alcohol Plan as administered by HUC. O FFENSIVE B EHAVIOR/S EXUAL H ARASSMENT harassment. Offensive behavior may include such actions as: rudeness, angry outbursts, inappropriate humor, vulgar obscenities, name calling, disrespectful language, or any other behavior regarded as offensive to a reasonable person. A violation of this policy is subject to discipline up to and including discharge. One specific kind of illegal behavior is sexual harassment. Sexual harassment includes unwelcome sexual advances, requests for sexual favors, sexually motivated physical conduct or other verbal or physical conduct or communication of a sexual nature when: 1. submission to that conduct or communication is made a term or condition of obtaining employment; or 2. submission to or rejection of that conduct or communication by an individual is used as a 3. that conduct or communication has the purpose or effect of substantially interfering with environment. Examples of conduct that violate this policy include, but are not limited to: Repeated offensive sexual flirtations, unwelcome advances, propositions or invitations; or Unwelcome repeated comments, jokes, displays, or suggestions of a sexual nature; or Objectionable physical contact, including touching In summary, sexual harassment is the unwanted, unwelcome and repeated action of an individual against another individual, using sexual overtones as a means of creating stress. Any employee who feels he/she is being subjected to offensive or discriminatory behavior of any kind or employees who are aware of such behavior is/are encouraged to express their objection to the behavior and should also immediately report the behavior to their immediate Supervisor, Department Manager or Director (if not the immediate supervisor), the Human Resources Director, or the General Manager. In addition, the employee may also file a complaint with the Minnesota Department of Human Rights and the EEOC. A person must file a complaint with the Minnesota Department of Human Rights within one year of the incident and file a complaint with the EEOC within 300 days of the incident. Staff Personnel who receives an offensive behavior or discrimination complaint shall inform the General Manager and Human Resources of the complaint as soon as possible. The General Manager must ensure an appropriate and prompt investigation of the complaint. If the investigation substantiates the complaint, HUC will take appropriate corrective action. Strict confidentiality is not possible in all cases of sexual harassment as the accused has the right to answer charges made against them; particularly if discipline is a possible outcome. Reasonable efforts will be made to respect the confidentiality of the individuals involved, to the extent possible. Any employee who makes a false complaint or provides false information during an investigation may be subject to disciplinary action, up to and including termination. Retaliation against any person who files a complaint or participates in an investigation is expressly prohibited. Retaliation includes, but is not limited to, any form of intimidation, reprisal or harassment. Any individual who retaliates against a person who testifies, assists, or participates in an investigation may be subject to disciplinary action up to and including termination. R ETIREMENT that employee intends to retire. R ESIGNATION Employees leaving employment with HUC in good standing will be paid any accrued unused vacation. To leave employment in good standing, an employee should provide written notice of resignation to Supervisor or Manager at least 10 working days prior to the resignation effective date. The General Manager may waive this requirement for good cause. A terminating employee must also return all HUC property, and equipment including keys, security devices, clothing and small hand tools provided by HUC. S OLICITATION ON U TILITY P REMISES Salespersons offering merchandise not related to HUC business are prohibited from soliciting during normal business hours. Employees are discouraged from soliciting other employees. Brochures and/or pamphlets are allowed to be put out in the breakroom for voluntary participation. E MPLOYEE G IFTS Employees are not required to make a contribution for a gift or grant a favor for another employee. P ETTY C ASH Petty cash funds are kept with the Accountant. The petty cash fund will be used to reimburse payment up to $25.00. Any expenditure over $25.00 will be reimbursed by check. Itemized receipts must be attached to a complete petty cash slip whenever possible. An employee may obtain an advance of petty cash by completing a petty cash slip and reconciling the advance with the actual amount as soon as possible. NON-EXEMPT SECTION 2 ADMINISTRATION OF PERSONNEL POLICIES The Commission approves personnel policies intending uniform administration of personnel matters of the Utilities. The Commission may supplement, amend and/or rescind the policies to assure that they will remain practical, useful and current. In approving personnel policies, the Commission has made every effort to be as reasonable and practical as possible. Final responsibility for the enforcement of the policies shall rest with the Commission. The Commission however, has delegated to the General Manager the responsibility and authority for the enforcement of all personnel policies. The General Manager, in turn, delegates certain responsibilities and authority to the Staff as deemed advisable in order to carry out the personnel policies. The General Manager, however, remains accountable to the Commission. If the Commission has not clearly delegated its authority in a certain manner, the Commission retains authority to determine the appropriate action. These personnel policies govern all Utilities employees and apply to all cases except where a policy contained herein conflicts with a Union Contract, or other employment contract, or past practice, in which case the Union Contract, or other employment contract, or past practice, shall govern. S AVINGS C LAUSE If any provision of this Handbook is declared by proper legislative, administrative or judicial authority to be unlawful, unenforceable or not in accordance with applicable Civil Service rules, or law, all other provisions of this Handbook shall remain in full force and effect for the duration of this Handbook. E QUAL E MPLOYMENT O PPORTUNITY HUC is committed to providing equal opportunity in all areas of employment, including, but not limited to recruitment, hiring, demotion, promotion, transfer, recruitment, selection, lay-off, disciplinary action, termination, compensation and selection for training. In accordance with Minnesota State Statute 363A, HUC will not discriminate against any employee or job applicant on the basis of race, color, creed, religion, national origin, ancestry, sex, sexual orientation, disability, age, marital status, genetic information, status with regard to public assistance, veteran status, familial status, or local human rights commission activity. H IRING and external recruitment if appropriate. The General Manager has the authority to hire all employees and must approve all hiring recommendations. Final interviews for the General Manager position will be conducted by the Commissioner Board with the assistance of the Human Resources Director. Final interviews for Director positions will be conducted by the General Manager, President of the Commission and Human Resources Director. P ROBATIONARY P ERIOD U PON H IRING A newly hired non-exempt employee shall serve a six (6) month probationary period during which the employee shall have the opportunity to demonstrate abilities and work performance. During this qualifying period, the Director, Manager or Supervisor should discuss with the employee, the oming fully acquainted with the job and co-workers. The General at any time during the probationary period. The General Manager may choose to extend an robation period up to a maximum of three months. New full-time employees are required to sign the acknowledgement in Appendix B when they begin employment. T EMPORARY E MPLOYEES Temporary employees are required to sign the acknowledgement in Appendix C when they begin employment. The General Manager must approve employment of a temporary worker for longer than 14 consecutive weeks. The responsible Director or Manager must inform the General Manager of the desire to employ a temporary worker longer than 14 weeks. L AYOFFS HUC retains its right to eliminate positions within the organization if the Commission deems it seniority. V OLUNTARY L EAVE OF A BSENCE HUC may request employees to voluntarily take a leave of absence without pay for a specified period of time. E MPLOYMENT OF R ELATIVES No applicant or employee shall receive preferential consideration because of his/her relationship to an HUC employee, a Commission member, a Hutchinson City Council member or other City employees and officials. Any HUC employee who extends such preferential treatment is subject to discipline. Immediate family members may be employed by HUC provided there is no direct report relationship. No member of the immediate family of the General Manager or of a current member of the Commission may be employed by HUC. A former Commission member may not be hired as an employee of HUC for two years after the D ATA P RACTICES A DVISORY Employee records are maintained by Human Resources (or the Administrative Coordinator). Personnel data is retained in personnel files, finance files, and benefit/medical files. Information is used to administer employee salary and benefit programs, process payroll, complete state and federal reports, document employee performance, etc. Employees have the right to know what data is retained, where it is kept, and how it is used. All employee data will be received, retained, and disseminated according to the Minnesota Government Data Practices Act. Media Requests: All HUC employees have a responsibility to help communicate accurate and timely information to the public in a professional manner. Requests for private data or information outside of Any employee who identifies a mistake in reporting should bring the error to the General Manager or other appropriate staff. Regardless of whether the communication i utilities role or in a personal capacity, employees must comply with all laws related to trademark, copyright, software use, etc. With the exception of routine events and basic information that is readily available to the public, all requests for interviews or information from the media are to be routed through the General Manager. No HUC employee is authorized to speak on behalf of HUC without prior authorization from the General Manager or his designee. Media requests include anything intended to be published or viewable to others in some form such as television, radio, newspapers, newsletters, social media sites, and web sites. When responding to media requests, employees should follow these steps: 3. If the request is for routine or public information (such as a meeting time or agenda) provide the information and notify the General Manager of the request. 4. If the request is regarding information about HUC personnel, potential litigation, controversial issues, an opinion on a HUC matter, or if an employee is unsure if the that issue. Let me take some basic information and submit your request to the deadline and contact information. All news releases concerning HUC personnel will be the responsibility of the General Manager. When/if the General Manager authorizes a staff person to communicate on behalf of HUC in interviews, publications, news releases, on social media sites, and related communications, employees must: Identify themselves as representing HUC. Account names on social media sites must be clearly connected to HUC and approved by the General Manager. All information must be respectful, professional and truthful. Corrections must be issued when needed. communications related to promoting a service. Employees need to notify the General Manager if they will be using their personal technology (cell phones, home computer, cameras, etc.) for HUC business. Employees should be aware that the data transmitted or stored may be subject to the Data Practices Act. It is important for HUC employees to remember that the personal communications of employees may reflect on HUC, especially if employees are commenting on HUC business. The following guidelines apply to personal communications including various forms such as social media (Facebook, Twitter, blogs, YouTube, etc.), letters to the editor of newspapers, and personal endorsements. Remember that what you write is public, and will be so for a long time. It may also be spread to large audiences. Use common sense when using email or social media sites. It is a good idea to refrain from sending or posting information that you would not want your boss or other employees to read, or that you would be embarrassed to see in the newspaper. HUC expects its employees to be truthful, courteous and respectful towards supervisors, co-workers, citizens, customers and other persons associated with HUC. Do not engage in name-calling or personal attacks. If you publicize something related to HUC business, identify yourself and use a disclaimer However, these are my own opinions and do not HUC resources, working time, or official positions cannot be used for personal profit or business interests, or to participate in personal political activity. Personal social media account name or email names should not be tied to HUC. C OMPLAINT/G RIEVANCE P ROCEDURE See Union Contract. E MPLOYEE C ONDUCT All HUC employees are expected to conduct themselves in a manner that creates a work environment enabling employees to work effectively and to promote positive customer relations. HUC employees are required to adhere to the following standards of conduct while on the job. To behave in a courteous, business-like manner and to comply with HUC policies and work rules. Refrain from any and all action, which may be detrimental to the safety or work of other employees or to the goals of HUC. To communicate openly and honestly with management, other employees, and the public. To share responsibility for personal development and growth. To continually strive for excellence in work product and habits. D ISCIPLINE In general, HUC employees shall be subject to disciplinary action for failing to fulfill their duties and responsibilities, including observance of work rules approved by the Commission. It is the policy of the Commission to administer discipline fairly, without discrimination, and for just cause. The employee may use the grievance procedure with respect to any disciplinary action believed to be unjust or disproportionate to the alleged offense. The General Manager, Director or Manager shall investigate any allegation on which disciplinary action might be based before disciplinary action is taken. The Commission supports the concept of progressive discipline but expressly reserves the right to impose various levels of discipline depending on the nature of the offense. Staff Personnel may impose oral and written reprimands, and may send an employee home for the remainder of a shift without pay. Only the General Manager may impose a suspension without pay, letter in lieu of suspension, demotion, or discharge. Notices of oral reprimand, written reprimand, suspension without pay, demotion, or discharge will be documented in written form and will state the reason(s) for the action taken. The employee shall personnel file. The following are examples of disciplinary action but do not constitute an exclusive list of possibilities and may be taken in any order or not used at all. These examples and their descriptions are not intended to create a contract or obligation on man A Oral reprimand. An oral notice advising an employee of inappropriate conduct and expected corrective action. B Written reprimand. A written notice advising an employee of inappropriate conduct. A written reprimand should describe in detail the behavior to be corrected, describe past actions taken by the supervisor to correct the problem, give direction and orders for the future including timetables and goals for improvement when appropriate, and specify consequences of repeating the inappropriate behavior. The employee will be given a copy of the reprimand and sign the original acknowledging receipt of the reprimand. The signature of the employee does not signify agreement with the reprimand. The reprimand C Prior to the suspension or as soon after as possible, the employee will be notified in writing of the reason for the suspension and its length. There are two forms of suspension: suspension as discipline and suspension pending investigation. An employee receiving a suspension as discipline may not be paid, may not accrue vacation, holiday or sick leave benefits during the suspension, and may not use paid time while suspended. An employee suspended pending investigation of allegations will have a copy of each written statement placed in the personnel file and will be paid during the investigation. If the allegations prove false, the statement will be removed. An employee placed on investigatory suspension should be notified as quickly as reasonably possible of the action taken regarding employment. D Demotion. Placement of an employee in a lower level position. E Discharge. The General Manager may discharge any employee, but if the employee has completed the probationary period, a dismissal will be made only for just cause. A dismissed employee will be notified by the previous posting of a summary of Minnesota Statute Sections 181.931 to 181.935 or by furnishing the terminated employee a copy of those statutes at termination that the employee has a right to make a written request for HUC reason for termination. If requested, HUC will provide reasons, in writing, within five working days. This notice will also contain a statement indicating that the employee may respond to the charges both orally and in writing and may appear personally before the official having authority to make or recommend the final decision. t not be limited to, evidence of any of the following: A Incompetence or inefficiency in the performance of duties. B Negligence or carelessness in the performance of duty, such as in the handling or control of municipal property, equipment, or funds and failure to observe safety rules and regulations. C Offensive or inappropriate conduct or language toward Utilities employees or other persons. D the appointing authority. E Acceptance of a fee, gift, or other valuable item or benefit in the course of, or as a result articles of negligible value, which are distributed generally, or to prohibit employees from accepting social courtesies, which promote good public relations. This prohibition is intended to prevent or discourage relationships, which may be construed as evidence of favoritism, coercion, unfair advantage, or collusion. Employees may accept food and refreshments in such instances as a luncheon, dinner meeting, or inspection tour in conjunction with HUC business. F Conviction of a crime, which affects or relates to the performance of assigned duties. G Using, threatening or attempting to use, political influence or unethical pressure to influence a decision on a promotion, transfer, leave of absence, increased compensation, other benefit, or any other matter in which the employee has an interest. Unethical pressure includes offers of gifts or other special benefits, coercion, collusion, threats of blackmail, requests for favoritism, and use of unfair advantage. H Absence from work without prior approval in accordance with this policy. I During assigned work schedules, (1) consuming or being under the influence of alcoholic beverages, (2) having the odor of an alcoholic beverage on the breath, or (3) consuming or being under the influence of a controlled substance, other than one prescribed by a physician, which does not impair the ability to perform assigned duties. J Tardiness or abuse of sick leave privileges. K Theft of public property, pilferage, or other unauthorized use or taking of property. L Sexual harassment. M Discrimination against or harassment of any HUC employee at any time, or any other person during work hours, based on race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, veterans status, disability, or age. N Performance of personal or other non-HUC work related matters during work hours. O P Engaging in a conflict of interest or performing public duties in a situation where the employee has a conflict of interest. Q Violations of the provisions of this Handbook and/or policies. R Horseplay, loafing or sleeping on the job. S Proven dishonesty in the performance of duties. T Acts or threats of physical violence directed toward HUC employees. U Unauthorized use or release of confidential, sensitive or privileged information. V As a supervisor, knowingly permitting another employee to violate this policy or other work rules. W Acting or failing to act in a manner not otherwise specified that tends to lower discipline or morale among HUC employees, brings or tends to bring discredit to the HUC, its employees, or that adversely affects the prompt, courteous and efficient provisions of public services. Freedom of speech protected by the First Amendment shall not be a basis for discipline. X Unauthorized possession or use of firearms or hazardous materials on HUC time or property. Y Refusal, during working hours, to submit to a Breathalyzer or other drug test required by law. C ONFLICT OF I NTEREST Employees must notify their Director or Manager of any direct or indirect financial interest they have in any contract with HUC, any interest they have in a contractor supplying HUC, or any such interest they may have with any entity competing with HUC, and all such notifications shall be forwarded to the General Manager. Any employee with such a financial interest may not work on outside financial interest, unless the interest has been disclosed, and deemed acceptable by HUC management. O THER E MPLOYMENT Employees must inform their Director or Manager of any work they perform for profit outside of employment. All such notifications shall be forwarded to the General Manager. Also, employees are expected to be mentally alert and physically able to perform their Utility jobs. Employees may not work on their outside employment while on duty with HUC nor may any HUC property or equipment be used to conduct such business at any time. L ICENSE R EQUIREMENTS FOR U TILITY V EHICLE O PERATION approved. This is a condition of employment if operation of a vehicle is an essential part of an An employee whose job requires operating a motor vehicle must possess a valid Minnesota ring employment with HUC, the employee General Manager. The General Manager shall take appropriate action up to and including discharge. S MOKING The HUC observes and supports the Minnesota Clean Indoor Air Act. All HUC buildings and vehicles, in their entirety, shall be designated as tobacco free, meaning that smoking in any form (through the use of tobacco products (-cigarettes is prohibited while in a HUC facility or vehicle. Smoking of any kind, including pipes, cigars, cigarettes, vaping with e-cigarettes and the use of chewing tobacco is prohibited for employees while on duty. Employees 18 and over are allowed to smoke only during their breaks and lunch, and only in areas designated for that purpose. Per City of Hutchinson ordinance, smoking is prohibited in public places and places of work and within 15 feet of entrances, exists, open windows and ventilation intakes of public places and places of work. A LCOHOL OR D RUGS Possession or consumption of alcohol or controlled substances is prohibited while on-duty or on/in any HUC equipment or property. An employee who reports to work incapacitated or whose performance is impaired through the use of alcohol or controlled substances is subject to disciplinary action up to and including discharge. All HUC employees required to mainta a maintenance or emergency function on a natural gas pipeline regulated by 49 CFR Parts 192, 193 or 195 must comply with the Total Compliance Solutions Drug and Alcohol Plan as administered by HUC O FFENSIVE B EHAVIOR/S EXUAL H ARASSMENT harassment. Offensive behavior may include such actions as: rudeness, angry outbursts, inappropriate humor, vulgar obscenities, name calling, disrespectful language, or any other behavior regarded as offensive to a reasonable person. A violation of this policy is subject to discipline up to and including discharge. One specific kind of illegal behavior is sexual harassment. Sexual harassment includes unwelcome sexual advances, requests for sexual favors, sexually motivated physical conduct or other verbal or physical conduct or communication of a sexual nature when: 4. submission to that conduct or communication is made a term or condition of obtaining employment; or 5. submission to or rejection of that conduct or communication by an individual is used as a 6. that conduct or communication has the purpose or effect of substantially interfering with environment. Examples of conduct that violate this policy include, but are not limited to: Repeated offensive sexual flirtations, unwelcome advances, propositions or invitations; or Unwelcome repeated comments, jokes, displays, or suggestions of a sexual nature; or Objectionable physical contact, including touching In summary, sexual harassment is the unwanted, unwelcome and repeated action of an individual against another individual, using sexual overtones as a means of creating stress. Any employee who feels he/she is being subjected to offensive or discriminatory behavior of any kind or employees who are aware of such behavior is/are encouraged to express their objection to the behavior and should also immediately report the behavior to their immediate Supervisor, Department Manager or Director (if not the immediate supervisor), the Human Resources Director, or the General Manager. In addition, the employee may also file a complaint with the Minnesota Department of Human Rights and the EEOC. A person must file a complaint with the Minnesota Department of Human Rights within one year of the incident and file a complaint with the EEOC within 300 days of the incident. Staff Personnel who receives an offensive behavior or discrimination complaint shall inform the General Manager and Human Resources of the complaint as soon as possible. The General Manager must ensure an appropriate and prompt investigation of the complaint. If the investigation substantiates the complaint, HUC will take appropriate corrective action. Strict confidentiality is not possible in all cases of sexual harassment as the accused has the right to answer charges made against them; particularly if discipline is a possible outcome. Reasonable efforts will be made to respect the confidentiality of the individuals involved, to the extent possible. Any employee who makes a false complaint or provides false information during an investigation may be subject to disciplinary action, up to and including termination. Retaliation against any person who files a complaint or participates in an investigation is expressly prohibited. Retaliation includes, but is not limited to, any form of intimidation, reprisal or harassment. Any individual who retaliates against a person who testifies, assists, or participates in an investigation may be subject to disciplinary action up to and including termination. R ETIREMENT that employee intends to retire. R ESIGNATION Employees leaving employment with HUC in good standing will be paid any accrued unused vacation. To leave employment in good standing, an employee should provide written notice of resignation to Supervisor or Manager at least 10 working days prior to the resignation effective date. The General Manager may waive this requirement for good cause. A terminating employee must also return all HUC property, and equipment including keys, security devices, clothing and small hand tools provided by HUC. S OLICITATION ON U TILITY P REMISES Salespersons offering merchandise not related to HUC business are prohibited from soliciting during normal business hours. Employees are discouraged from soliciting other employees. Brochures and/or pamphlets are allowed to be put out in the breakroom for voluntary participation. E MPLOYEE G IFTS Employees are not required to make a contribution for a gift or grant a favor for another employee. P ETTY C ASH Petty cash funds are kept with the Accountant. The petty cash fund will be used to reimburse payment up to $25.00. Any expenditure over $25.00 will be reimbursed by check. Itemized receipts must be attached to a complete petty cash slip whenever possible. An employee may obtain an advance of petty cash by completing a petty cash slip and reconciling the advance with the actual amount as soon as possible. HUTCHINSON UTILITIES COMMISSION Board Action Form Agenda Item: Approve Policy Changes Presenter: Agenda Item Type: Jeremy Carter App Changes to Policies Time Requested (Minutes): 5 Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As part of HUC's standard operating procedures, a continual policy review is practiced. The following revisions to the policies below are recommended. i. Definitions - Exempt & Non-Exempt Handbook ii. Violence In The Workplace - Exempt & Non-Exempt Handbook iii. Promotions And Transfers Exempt & Non-Exempt Handbook iv. Flowers Exempt & Non-Exempt Handbook BOARD ACTION REQUESTED: Approve Policy Changes Fiscal Impact: Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: EXEMPT V IOLENCE IN THE W ORKPLACE HUC strives to ensure a healthy and productive working environment. In that regard, safety and security are of the utmost importance. HUC will enforce zero tolerance for any acts of physical assault or threats of bodily harm in the performance of work duties, wherever those duties are performed. Policy on Violence HUC views aggressive and/or violent behavior as disruptive and contrary to the development and maintenance of a safe, productive and supportive work environment. Such behavior is not tolerated. Employees who exhibit such behavior will be held accountable under the policy and work rules, as well as local, state, and federal law. All threats and acts of aggression or violent behavior should be taken seriously and addressed immediately. Such threats or acts include, but are not limited to: Harming or threatening to harm any employee or visitor; Damaging or threatening to damage property or the property of any employee or visitor; Unlawfully possessing a firearm, ammunition, weapon or incendiary device on HUC property, vehicles, construction sites or while attending HUC business-related activities off site; Engaging in stalking behavior of any employee. Accountability All personnel are responsible for notifying their immediate supervisor, or in the absence of their supervisor, another member of the management staff of any threats that they have witnessed, received, or have been told that another person has witnessed or received. Even without an actual threat, personnel should also report any behavior they have witnessed which they regard as threatening or violent, when that behavior is job related or might be carried out on a public site, or is connected to municipal employment. Employees are responsible for making this report regardless of the relationship between the aggressor and the individual to whom the threat or threatening behavior was directed. Directive Any person who makes substantial threats, exhibits threatening behavior, or engages in violent acts against employees, visitors, guests, or other individuals while on HUC property shall be removed from the premises as quickly as safety permits and shall remain off HUC premises pending the outcome of an investigation. Law enforcement should be utilized to remove individuals who are perceived as a threat. HUC will initiate an appropriate response which may include, but is not limited to, suspension and/or termination of any business relationship, reassignment of job duties, suspension or termination of employment and/or criminal prosecution of the person or persons involved. Employees and supervisors should work together to identify and report situations or locations where there is a potential for physical assault or threat of bodily harm. Employees should record specific incidents, behaviors or conversations that may indicate a potential for violence. Documentation should be forwarded to their Manager/Director. In instances where their supervisor is the source of potential violence, documentation should be forwarded to the next level of management with a copy to the Customer/HR Manager Human Resources. Supervisors must carefully review and assess information provided by employees or other sources. Appropriate precautions should be taken based on the specific situation. For example: If a problem situation or location is identified, it should be communicated to other employees who are likely to become involved in the situation or come in contact with the location. Individuals applying for a restraining order must provide their supervisor and the Customer/HR Manager Human Resources with a copy of the petition used to seek the order, and a copy of any temporary and permanent protective restraining order which is subsequently granted. The Customer/HR Manager Human Resources will monitor and evaluate the violence reports on an ongoing basis and will submit program reports to the General Manager when requested. P ROMOTIONS AND T RANSFERS HUC encourages individual advancement by providing opportunities for promotion and transfer as positions become available. Job vacancies shall be posted ten (10) working days. Employees desiring to be considered for the position must provide a letter of interest to the appropriate staff person by the deadline stated on the posting. All promoted and transferred employees shall serve a six (6) month probationary trial period during which time the promoted or transferred employee may be placed back in the em previous job classification if a position is available and at the sole discretion of the Staff Personnel Employer, without loss of seniority. We encourage employees to discuss their career plans and goals with their Director or Manager. F LOWERS In the event of the death of a full-time or part-time employee , flowers/plant will be sent at HUC expense without delay to the appropriate funeral home. Information needed: Funeral Home Address Date to Send Flowers Similar consideration may be given, at the discretion of the General Manager, Directors, or Managers, for retirees, consultants, Commission members or others who provide significant service to HUC. N ON-E XEMPT V IOLENCE IN THE W ORKPLACE HUC strives to ensure a healthy and productive working environment. In that regard, safety and security are of the utmost importance. HUC will enforce zero tolerance for any acts of physical assault or threats of bodily harm in the performance of work duties, wherever those duties are performed. Policy on Violence HUC views aggressive and/or violent behavior as disruptive and contrary to the development and maintenance of a safe, productive and supportive work environment. Such behavior is not tolerated. Employees who exhibit such behavior will be held accountable under the policy and work rules, as well as local, state, and federal law. All threats and acts of aggression or violent behavior should be taken seriously and addressed immediately. Such threats or acts include, but are not limited to: Harming or threatening to harm any employee or visitor; Damaging or threatening to damage property or the property of any employee or visitor; Unlawfully possessing a firearm, ammunition, weapon or incendiary device on HUC property, vehicles, construction sites or while attending HUC business-related activities off site; Engaging in stalking behavior of any employee. Accountability All personnel are responsible for notifying their immediate supervisor, or in the absence of their supervisor, another member of the management staff of any threats that they have witnessed, received, or have been told that another person has witnessed or received. Even without an actual threat, personnel should also report any behavior they have witnessed which they regard as threatening or violent, when that behavior is job related or might be carried out on a public site, or is connected to municipal employment. Employees are responsible for making this report regardless of the relationship between the aggressor and the individual to whom the threat or threatening behavior was directed. Directive Any person who makes substantial threats, exhibits threatening behavior, or engages in violent acts against employees, visitors, guests, or other individuals while on HUC property shall be removed from the premises as quickly as safety permits and shall remain off HUC premises pending the outcome of an investigation. Law enforcement should be utilized to remove individuals who are perceived as a threat. HUC will initiate an appropriate response which may include, but is not limited to, suspension and/or termination of any business relationship, reassignment of job duties, suspension or termination of employment and/or criminal prosecution of the person or persons involved. Employees and supervisors should work together to identify and report situations or locations where there is a potential for physical assault or threat of bodily harm. Employees should record specific incidents, behaviors or conversations that may indicate a potential for violence. Documentation should be forwarded to their Manager/Director. In instances where their supervisor is the source of potential violence, documentation should be forwarded to the next level of management with a copy to the Customer/HR Manager Human Resources. Supervisors must carefully review and assess information provided by employees or other sources. Appropriate precautions should be taken based on the specific situation. For example: If a problem situation or location is identified, it should be communicated to other employees who are likely to become involved in the situation or come in contact with the location. Individuals applying for a restraining order must provide their supervisor and the Customer/HR Manager Human Resources with a copy of the petition used to seek the order, and a copy of any temporary and permanent protective restraining order which is subsequently granted. The Customer/HR Manager Human Resources will monitor and evaluate the violence reports on an ongoing basis and will submit program reports to the General Manager when requested. P ROMOTIONS AND T RANSFERS HUC encourages individual advancement by providing opportunities for promotion and transfer as positions become available. Job vacancies shall be posted ten (10) working days. Employees desiring to be considered for the position must provide a letter of interest to the appropriate staff person by the deadline stated on the posting. All promoted and transferred employees shall serve a six (6) month probationary trial period during which time the promoted or transferred employee may be placed back in the em previous job classification if a position is available and at the sole discretion of the Staff Personnel Employer, without loss of seniority. We encourage employees to discuss their career plans and goals with their Director or Manager. F LOWERS In the event of the death of a full-time or part-time employee, , flowers/plant will be sent at HUC expense without delay to the appropriate funeral home. Information needed: Funeral Home Address Date to Send Flowers Similar consideration may be given, at the discretion of the General Manager, Directors, or Managers, for retirees, consultants, Commission members or others who provide significant service to HUC. E XEMPT D EFINITIONS In this Handbook, the following terms shall have the meanings as listed below: controllers, line workers, and natural gas service workers. wage and overtime provisions of the FLSA. Commission. , or significant other, parent, stepparent, guardian, child, adult, adult child, stepchild, sibling, grandparent, grandchild, and any in-law, and a significant others . - the minimum wage and overtime provisions of the FLSA. - budgeted position who is not temporary or probationary and who is regularly scheduled to work 40 hours during a work week. Generally, regular full-time employees are eligible for Utility benefit programs subject to the terms, conditions and limitations of each benefit program. -time employee with Hutchinson Utilities. irector, Production Manager, Electric Transmission/Distribution Manager, Engineering Services Manager, Financial Manager, Accountant, Administrative Coordinator, Purchasing / Inventory Agent, Computer Systems Analyst, Energy Conservation Administrator, and Accounts Supervisor. maximum of 24 weeks per year, even if not consecutive weeks. Temporary positions are eligible for legally mandated benefits such as Social Security but are ineligible for Utility benefit programs. N ON-E XEMPT D EFINITIONS In this Handbook, the following terms shall have the meanings as listed below: gas service workers. wage and overtime provisions of the FLSA. Commission. , or significant other, parent, stepparent, guardian, child, adult, adult child, stepchild, sibling, grandparent, grandchild, and any in-law, and a significant others . - minimum wage and overtime provisions of the FLSA. - budgeted position who is not temporary or probationary and who is regularly scheduled to work 40 hours during a work week. Generally, regular full-time employees are eligible for Utility benefit programs subject to the terms, conditions and limitations of each benefit program. -time employee with Hutchinson Utilities. means Natural Gas Director, Production Manager, Electric Transmission/Distribution Manager, Engineering Services Manager, Financial Manager, Accountant, Administrative Coordinator, Purchasing / Inventory Agent, Computer Systems Analyst, Energy Conservation Administrator, and Accounts Supervisor. maximum of 24 weeks per year, even if not consecutive weeks. Temporary positions are eligible for legally mandated benefits such as Social Security but are ineligible for Utility benefit programs. HUTCHINSON UTILITIES COMMISSION Board Action Form Agenda Item: ApproveRequisition#8310for2020ChevyBoltEV Presenter:Agenda Item Type: Dave Time Requested (Minutes): 5 Attachments: BACKGROUND/EXPLANATION OF AGENDA ITEM: HUCwillberemovingthe2008ChevyTahoeandreplacingitwithaChevyBoltall ElectricVehicle. TheStateBidContractnumberfortheChevyBoltis#169038. The2020budgetis$40,000.00.Thisalsoincludesmoneytowrapthevehicleto promoteEV'swhichwillbedoneatalaterdate. Werecommendpurchasingthe2020ChevyBoltrequisition#8310fromRangerChevy. BOARD ACTION REQUESTED: Approve Requisition#8310 Fiscal Impact: 32,407.15 Included in current budget: Budget Change: No PROJECT SECTION: Total Project Cost: Remaining Cost: RANGER GM 1502 E HOWARD ST CONTACT PERSON MN HIBBING, MN 55746 FLEET MGR CONTRACT # 169038 218-263-7576 fax BOB O'HARA 800-894-7579 218-349-8955 ITEM # 1/21/2020 CRS-1 \\ BASE MODEL 2020 CHEVROLET BOLT EV 1FB48$ 27,850.00 option cost COMFORT & CONV PKG (incl heated driver & passenger seat + heated steering 488.40 X WPU$488.40 wheel) DRIVER CONFIDENCE PKG (incl lane change alert, blind zone and cross traffic 435.60 X WPR$435.60 alert) 660.00 DC FAST CHARGINGX CBT$660.00 DRIVER CONVIDENCE ii (incl automatic emergency braking, lane keep assist,forward collision alert, following 435.00 WPX- distance indicator, front pedestian braking) ALL WEATHER F&R FLOOR MATS 123.20 VAV- 96.80 ALL WEATHER REAR CARGO MAT VLI- INTERIOR PROTECTION PKG (incl all 184.80 X PDH$184.80 weather floor mats and cargo mat) 92.40 TIRE INFLATOR KIT SD4- EXTRA 110 V CHARGING CORD 470.80 5XB- 101.20 UNIVERSAL TABLET HOLDER - ALUMINUM SILL PLATES 110.00 SG1- 240 Volt Charger 32 Amp (gm accesory)(requires special 240 volt plug 675.00 X DLR1$675.00 in) QTY 166.00 ADDITIONAL KEYS 0 DLR2$0.00 N/A COLORS STD x GAZ G7Q NIGHTFALL GRAY INCL GAZ SUMMIT WHITE GRAY CLOTH H02 INCL GB8 MOSAIC BLACK GN0 SLATE GRAY $ 30,293.80 GD1 KINETIC BLUE add 347.60 GPJ CAJUN RED add 347.60 GNC OASIS BLUE GLL CAYENNE ORANGE add 347.6 0.065 MN STATE SALES TAX @6.5% X $1,969.10 144.25 TAX EXCEMPT PLATES TITLE & TRANS X$144.25 20.00 TRANSIT TAX - $ - $ 32,407.15 QTY TOTAL AMOUNT $ 32,407.15 1 contact name DAVE HUNSTAD customer HUTCHINSON UTILITIES address 225 Michigan St SE city, ST zip Hutchinson MN 55350 phone #(320) 583-9330 email address dhunstad@ci.hutchinson.mn.us PO # FACTORY ORDER NUMBER HUTCHINSON UTILITIES COMMISSION Board Action Form Agenda Item: ChargePointDCFastChargingStation Presenter:Agenda Item Type: Dave NewBusiness Time Requested (Minutes): 5 Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: HUCwillinstallanElectricVehicleDCFastChargingstationforPublicuse.Wechose togowithChargePointforthreemainreasons. 1)StateContractPricing 2)Wecurrentlyofferrebatesforin-homechargepointchargerthroughourBrightEnergy Solutionsprogram. 3)AllowsustohaveoneplatformformonitoringresidentialandcommercialEVcharging. Recommendapprovingrequisition#8318for$49,930.00toCarbonDayAutomotive statecontractnumber92522. The2020Budgetis$75,000.00thatalsoincludesinstallationmaterialsandlabor. BOARD ACTION REQUESTED: ApproveReq8318-ChargePointDCFastChargingStation Fiscal Impact: $49,930.00 Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: HUTCHINSON UTILITIES COMMISSION Board Action Form Agenda Item: DistributedGeneration2019Report Presenter:Agenda Item Type: Dave NewBusiness Time Requested (Minutes): 5 Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: TheLawrequiresMunicipalUtilitiesthathaveadoptedCogenerationpoliciestoreview annuallyallNetEnergybilledqualifyingfacilities. HUChas4activeSolarcognerationfacilitiesonoursystem. System1----------400KWGroundMount System2------------80KWRoofTop System3-----------10KWRoofTop System4-----------10KWRoofTop Attached: HUCCogenerationPolicy HUCCogenerationRules HUC2019ActiveCogenerationTotals BOARD ACTION REQUESTED: None Fiscal Impact: Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: Hutchinson Utilities Commission Policy Regarding Distributed Energy Resources and Net Metering To establish the application procedure and qualification criteria for all customers for the delivery, interconnection, metering and purchase of electricity from distributed energy resource facilities and to comply with applicable laws and rules governing distributed energy resources. The utility recognizes its obligation to provide interconnection to eligible qualifying facilities and will comply with all applicable laws and rules governing distributed energy resources. For purposes of this policy, the following terms have the meanings given them: A. Average retail energy rate - the average of the retail energy rates, exclusive of special rates based on income, age, or energy conservation, according to the applicable rate schedule of the utility for sales to the class of customer of which the customer/qualifying facility belongs. B. Avoided costs - the incremental costs to the utility of electric energy or capacity or both which, but for the purchase from the qualifying facility, the utility would generate itself or purchase from another source. C. Contract - the written agreement between the customer/qualifying facility and the utility, as established in the utility Interconnection of Cogeneration and Small Power Production. D. Distributed energy resource (DER) - a distributed generation system incorporated with or without an electric storage system. E. Interconnection application - the form to be used by the customer to submit its formal request for interconnection to the utility and which shall be substantially similar in form to that contained in the Distributed Energy Resources Interconnection Process adopted by the utility. F. Interconnection rules - any applicable rules developed in accordance with Minnesota Statutes §§216B.164 and 216B.1611. This includes the utilityRules Governing Interconnection of Cogeneration and Small Power Production. It also includes the utility Distributed Energy Resources Interconnection Process which includes its Simplified Process, Fast Track Process, and Study Process as well as the technical requirements incorporated therein or any future technical requirements adopted by the utility. G. Measured capacity - for purposes of determining capacity, it shall be measured based on the highest fifteen (15) minute average demand of the unit in any one billing period. H. Net metering/net billing - the process whereby the customer and the utility compensate each other based on the difference in the amount of energy each sells to the other at the net metered facility. I. Net metered facility - an electric generation facility constructed for the purpose of offsetting energy use through the use of renewable energy or high efficiency generation sources with a capacity of less than 40 kilowatts that has elected in writing to be compensated for excess generation through net metering/net billing. J. Total generator nameplate capacity - the nominal voltage (V), current (A), maximum active power (kWac), apparent power (kVA), and reactive power (kvar) at which a distributed energy resource (DER), is capable of sustained operation. For a qualifying facility with multiple units, the total generator capacity is equal to the s nameplate rating in the qualifying facility. 1 with the utility similar device settings or adjustments as identified in IEEE 1547. The customer must fully, accurately and completely disclose in its interconnection application to the utility, the technical specifications for any capacity limiting device contemplated and the customer shall furnish the utility with any factory manuals or other similar documents requested from the utility regarding such limiting or other control devices which factor into the calculation of total generator capacity. K. Qualifying facility - a cogeneration or small power production facility which satisfies the conditions established in Code of Federal Regulations, title 18, part 292. The qualifying facility must be owned by a customer of the utility and located in the utility service area. L. Utility Hutchinson Utilities Commission. In the event an inconsistency exists between terms in this policy and those established by applicable statute, rule or court order, then the definition so established shall supersede the definition used in this policy and shall govern. All customers are eligible for distributed generation, interconnection with the utility's distribution system and application of net metering upon the following terms and conditions. 1. The customer must meet the eligibility requirements set forth in the federal Public Utility Regulatory Policies Act of 1978 (PURPA) *18 C.F.R. 292.303, 292.304 and Minnesota's distributed generation laws. Minn. Stat. §216B.164. 2. The customer shall complete, sign and return to utility either the Interconnection Application or the Simplified Process Application in the form prescribed in the utility Distributed Energy Resources Interconnection Process. The application shall be approved by the utility prior to the customer beginning the project. The customer signature on the application indicates the customer shall follow the steps outlined in the u interconnection rules. 3. The customer shall enter into a written contract with the utility using the uniform contract contained in the utility Interconnection of Cogeneration and Small Power Production. 4. The qualifying facility shall pay the utility for all reasonable costs of interconnection including those costs outlined in Minnesota Statute 216B.164, the utilityDER Interconnection Process, and the State of Minnesota Interconnection Technical Requirements. 5. The qualifying facility total generator nameplate capacity shall be less than 40 kW and the facility shall operate at a measured capacity of less than 40 kW at all times to qualify for net metering/net billing or roll over credit compensation. 6. The utility may limit the capacity and operating characteristics of qualifying facility single phase generators in a manner consistent with the utility limitations for single phase motors, when necessary to avoid a qualifying facility from causing problems with the service of other customers. 7. The utility may require the qualifying facility to discontinue parallel generation operations when necessary for system safety. 2 8. The power output from the qualifying facility must be maintained so that frequency and voltage are compatible with normal utility service and do not cause that service to fall outside the prescribed limits of interconnection rules and other standard limitations. 9. The qualifying facility shall keep in force liability insurance against personal or property damage due to the installation, interconnection, and operation of its electric generating facilities. The amount of insurance coverage shall be the maximum amount of said insurance for a qualifying facility or net metered facility as outlined in the utility Interconnection Process. 10. Failure of the qualifying facility to operate its distributed energy resource at a measured capacity below the 40 kW AC capacity limit established by Minn. Stat. §216B.164, Sub. 3 and as contemplated by this policy, shall result in the following. The utility will notify the customer/qualifying facility of the fact that its generating equipment has failed to operate below the 40 kW AC maximum capacity and will provide the customer/qualifying facility with the date, time and kW reading that substantiate this finding. 11. The utility shall compensate the customer/qualifying facility for all metered electricity produced by said qualifying facility during the thirty (30) day period during which the failure occurred, at the utility's wholesale power supplier's avoided cost rate. 12. The utility shall continue to pay the customer/qualifying facility for subsequent electricity produced and delivered pursuant to the contract, at the utility's wholesale power supplier's avoided cost rate until: 1. The problem with the generator that caused it to operate at or above the statutory maximum capacity has been remedied; and 2. The utility has been provided documentation adopted by a Minnesota Professional Engineer that confirms the problem with the generator has been remedied. 13. Any customer account eligible for net metering/net billing is not eligible for any other load management discounts unless agreed to by the utility. 14. Payment for the purchase of the qualifying facility payment to the customer within fifteen (15) days of the billing date, whichever is selected and indicated in the contract. 15. The customer must be, and continue to be, current with payment on its electric account with utility. 16. The customer must not enter into any arrangement that violates the utility to provide electric service in its service area under Minnesota Statutes §§216B.37-44. 17. In the event that the distributed generator fails to meet the requirements of this policy for a total distributed generation capacity of less than 40 kW AC, and fails to satisfy the corrective requirements set forth in Section 12 above, then the utility will have the right to (1) cancel the contract with the owner of the qualifying facility, and (2) enter into a new contract with the owner of the qualifying facility that, among other changes, adjusts the qualifying facilityity and specifies avoided cost pricing for the qualifying facility. To the extent that the utility does not have the obligation to make purchases from qualifying facilities of 40 kW or greater due to transfer of the obligation to the utility's wholesale supplier that has been approved by the Federal Energy Regulatory Commission, the new agreement will be between the utility's wholesale supplier and the 3 qualifying facility. In either case, the utility (and, as applicable, the utility's wholesale supplier) and the owner of the qualifying facility will cooperate in the transition from the form of contract set forth in the utilityRules Governing Interconnection of Cogeneration and Small Power Production to a new form of contract appropriate to a qualifying facility with a capacity of 40 kW or greater. 18. Fully executed interconnection contracts for distributed energy resources may be canceled in the event the distributed energy resource fails to interconnect to the utility distribution system within twelve (12) months of signing of the interconnection contract by the qualifying facility and the utility. 4 Rules Governing the Interconnection of Cogeneration and Small Power Production Facilities with Hutchinson Utilities Commission Part A. DEFINITIONS Subpart 1. Applicability. For purposes of these rules, the following terms have the meanings given them below. Subp. 2. Average retail utility energy rate. "Average retail utility energy rate" means, for any class of utility customer, the quotient of the total annual class revenue from sales of electricity minus the annual revenue resulting from fixed charges, divided by the annual class kilowatt-hour sales. The computation shall use data from the most recent 12- month period available. Subp. 3. Backup power. "Backup power" means electric energy or capacity supplied by the utility to replace energy ordinarily generated by a qualifying facility's own generation equipment during an unscheduled outage of the facility. Subp. 4. Capacity. "Capacity" means the capability to produce, transmit, or deliver electric energy, and is measured by the number of megawatts alternating current at the point of common coupling between a qualifying facility and the utility's electric system during a 15-minute interval period. Subp. 5. Capacity costs. "Capacity costs" means the costs associated with providing the capability to deliver energy. The utility capital costs consist of the costs of facilities from the utility and the ed to generate, transmit, and distribute electricity and the fixed operating and maintenance costs of these facilities. Subp. 6. Customer. "Customer" means the person named on the utility electric bill for the premises. Subp. 7. Energy. "Energy" means electric energy, measured in kilowatt-hours. Subp. 8. Energy costs. "Energy costs" means the variable costs associated with the production of electric energy. They consist of fuel costs and variable operating and maintenance expenses. Subp. 9. Firm power. "Firm power" means energy delivered by the qualifying facility to the utility with at least a 65 percent on-peak capacity factor in the month. The capacity factor is based upon the qualifying facility's maximum metered capacity delivered to the utility during the on-peak hours for the month. Subp. 10. Governing body. Hutchinson Utilities Commission. Subp. 11. Interconnection costs. "Interconnection costs" means the reasonable costs of connection, switching, metering, transmission, distribution, safety provisions, and administrative costs incurred by the utility that are directly related to installing and maintaining the physical facilities necessary to permit interconnected operations with a qualifying facility. Costs are considered interconnection costs only to the extent that they exceed the costs the utility would incur in selling electricity to the qualifying facility as a nongenerating customer. Subp. 12. Interruptible power. "Interruptible power" means electric energy or capacity supplied by the utility to a qualifying facility subject to interruption under the provisions of the utility's tariff applicable to the retail class of customers to which the qualifying facility would belong irrespective of its ability to generate electricity. Subp. 13. Maintenance power. "Maintenance power" means electric energy or capacity supplied by 1 a utility during scheduled outages of the qualifying facility. Subp. 14. On-peak hours. "On-peak hours" means either those hours formally designated by the utility as on-peak for ratemaking purposes or those hours for which its typical loads are at least 85 percent of its average maximum monthly loads. Subp. 15. Point of distributed energy resource (DER) connection. "Point of DER connection" means the point where the qualifying facility's generation system, including the point of generator output, is connected to the Subp. 16. Purchase. "Purchase" means the purchase of electric energy or capacity or both from a qualifying facility by the utility. Subp. 17. Qualifying facility. "Qualifying facility" means a cogeneration or small power production facility which satisfies the conditions established in Code of Federal Regulations, title 18, part 292. The initial operation date or initial installation date of a cogeneration or small power production facility must not prevent the facility from being considered a qualifying facility for the purposes of this chapter if it otherwise satisfies all stated conditions. The qualifying facility must be owned by a Customer and located in the utility service area. Subp. 18. Sale. "Sale" means the sale of electric energy or capacity or both by the utility to a qualifying facility. Subp. 19a. Standby charge. "Standby charge" means the charge imposed by the utility upon a qualifying facility for the recovery of costs for the provision of standby services necessary to make electricity service available to the qualifying facility. Subp. 19b. Standby service. "Standby service" means the service to potentially provide electric energy or capacity supplied by the utility to a qualifying facility greater than 40 kW. Subp. 20. Supplementary power. "Supplementary power" means electric energy or capacity supplied by the utility which is regularly used by a qualifying facility in addition to that which the facility generates itself. Subp. 21. System emergency. "System emergency" means a condition on the utility's system which is imminently likely to result in significant disruption of service to customers or to endanger life or property. Subp. 22. Utility. "Utility" means Hutchinson Utilities Commission. Part B. SCOPE AND PURPOSE The purpose of these rules is to implement certain provisions of Minnesota Statutes, §216B.164; the Public Utility Regulatory Policies Act of 1978, United States Code, title 16, §824a-3; and the Federal Energy Regulatory Commission regulations, Code of Federal Regulations, title 18, part 292. These rules shall be applied in accordance with their intent to give the maximum possible encouragement to cogeneration and small power production consistent with protection of the ratepayers and the public. Part C. FILING REQUIREMENTS 2 Annually the utility shall file for review and approval, a cogeneration and small power production tariff with the governing body. The tariff must contain schedules 1 4. SCHEDULE 1. Schedule 1 shall contain the calculation of the average retail utility energy rates to be updated annually. SCHEDULE 2. Schedule 2 shall contain all standard contracts to be used with qualifying facilities, containing applicable terms and conditions. SCHEDULE 3. Schedule 3 shall contain the utility's adopted interconnection process, safety standards, technical requirements for distributed energy resource systems, required operating procedures for interconnected operations, and the functions to be performed by any control and protective apparatus. SCHEDULE 4. Schedule 5 shall contain the estimated average incremental energy costs by seasonal, peak and off- Schedule 4 shall also contain the net annual avoided capacity costs, if any, stated per kilowatt-hour and averaged over the on- capacity purchases are first avoided. Both the average incremental energy costs and net annual avoided capacity costs shall be increased by a factor equal to 50 percent of the utility and the electric energy. Part D. AVAILABILITY OF FILINGS All filings shall be maintained at the utility's general office and any other offices of the utility where rate tariffs are kept. The filings shall be made available for public inspection during normal interconnection procedures and application form on the utility website, if practicable, or at the utility office. Part E. REPORTING REQUIREMENTS Annually the utility shall report to the governing body for its review and approval an annual report including information in subparts 1-3. The utility shall still comply with other federal and state reporting of distributed generation to federal and state agencies expressly required by statute. Subpart 1. Summary of average retail utility energy rate. A summary of the qualifying facilities that are currently served under average retail utility energy rate. Subp. 2. Other qualifying facilities. A summary of the qualifying facilities that are not currently served under average retail utility energy rate. Subp. 3. Wheeling. A summary of the wheeling undertaken with respect to qualifying facilities. 3 Part F. CONDITIONS OF SERVICE Subpart 1. Requirement to purchase. The utility shall purchase energy and capacity from any qualifying facility which offers to sell energy and capacity to the utility and agrees to the conditions in these rules. Subp. 2. Written contract. A written contract shall be executed between the qualifying facility and the utility. Part G. ELECTRICAL CODE COMPLIANCE Subpart 1. Compliance; standards. The interconnection between the qualifying facility and the utility must comply with the requirements in the most recently published edition of the National Electrical Safety Code issued by the Institute of Electrical and Electronics Engineers. The interconnection is subject to subparts 2 and 3. Subp. 2. Interconnection. The qualifying facility is responsible for complying with all applicable local, state, and federal codes, including building codes, the National Electrical Code (NEC), the National Electrical Safety Code (NESC), and noise and emissions standards. The utility shall require proof that the qualifying facility is in compliance with the NEC before the interconnection is made. The qualifying facility must obtain installation approval from an electrical inspector recognized by the Minnesota State Board of Electricity. Subp. 3. Generation system. The qualifying facility's generation system and installation must comply with the American National Standards Institute/Institute of Electrical and Electronics Engineers (ANSI/IEEE) standards applicable to the installation. Part H. RESPONSIBILITY FOR APPARATUS The qualifying facility, without cost to the utility, must furnish, install, operate, and maintain in good order and repair any apparatus the qualifying facility needs in order to operate in accordance with schedule 3. Part I. TYPES OF POWER TO BE OFFERED; STANDBY SERVICE Subpart 1. Service to be offered. The utility shall offer maintenance, interruptible, supplementary, and backup power to the qualifying facility upon request. Subp. 2. Standby service. The utility shall offer a qualifying facility standby power or service at the Part J. DISCONTINUING SALES DURING EMERGENCY The utility may discontinue sales to the qualifying facility during a system emergency, if the discontinuance and recommencement of service is not discriminatory. Part K. RATES FOR UTILITY SALES TO A QUALIFYING FACILITY Rates for sales to a qualifying facility are governed by the applicable tariff for the class of 4 electric utility customers to which the qualifying facility belongs or would belong were it not a qualifying facility. Such rates are not guaranteed and may change from time to time at the discretion of the utility. Part L. STANDARD RATES FOR PURCHASES FROM QUALIFYING FACILITIES Subpart 1. Qualifying facilities with 100-kilowatt capacity or less. For qualifying facilities with capacity of 100 kilowatts or less, standard purchase rates apply. The utility shall make available four types of standard rates, described in parts M, N, O, and P. The qualifying facility with a capacity of 100 kilowatts or less must choose interconnection under one of these rates, and must specify its choice in the written contract required in part V. Any net credit to the qualifying facility must, at its option, be credited to its account with the utility or returned by check or comparable electronic payment service within 15 days of the billing date. The option chosen must be specified in the written contract required in part V. Qualifying facilities remain responsible for any monthly service charges and demand charges specified in the tariff under which they consume electricity from the utility. Subp. 2. Qualifying facilities over 100-kilowatt capacity. A qualifying facility with more than 100- kilowatt capacity has the option to negotiate a contract with the utility or, if it commits to provide firm power, be compensated under standard rates. Subp. 3. Grid access charge. A qualifying facility shall be assessed a monthly grid access charge to arrangement. The additional charge shall be reasonable and appropriate for the class of customer based on the most recent cost of service study defining the grid access charge. The cost of service study for the grid access charge shall be made available for review by the customer of the utility upon request. Part M. AVERAGE RETAIL UTILITY ENERGY RATE Subpart 1. Applicability. The average retail utility energy rate is available only to customer-owned qualifying facilities with capacity of less than 40 kilowatts which choose not to offer electric power for sale on either a time-of-day basis, a simultaneous purchase and sale basis or roll-over credit basis. Subp. 2. Method of billing. The utility shall bill the qualifying facility for the excess of energy supplied by the utility above energy supplied by the qualifying facility during each billing period according to the utility's applicable retail rate schedule. Subp. 3. Additional calculations for billing. When the energy generated by the qualifying facility exceeds that supplied by the utility to the customer at the same site during the same billing period, the utility shall compensate the qualifying facility for the excess energy at the average retail utility energy rate. Part N. SIMULTANEOUS PURCHASE AND SALE BILLING RATE Subpart 1. Applicability. The simultaneous purchase and sale rate is available only to qualifying 5 facilities with capacity of less than 40 kilowatts which choose not to offer electric power for sale on average retail utility energy rate basis, time-of-day basis or roll- over credit basis. Subp. 2. Method of billing. The qualifying facility must be billed for all energy and capacity it consumes during a billing period according to the utility's applicable retail rate schedule. Subp. 3. Compensation to qualifying facility; energy purchase. The utility shall purchase all energy which is made available to it by the qualifying facility. At the option of the qualifying facility, its entire generation must be deemed to be made available to the utility. Compensation to the qualifying facility must be the energy rate shown on schedule 4. Subp. 4. Compensation to qualifying facility; capacity purchase. If the qualifying facility provides firm power to the utility, the capacity component must be the s net annual avoided capacity cost per kilowatt-hour averaged over all hours shown on schedule 4, divided by the number of hours in the billing period. If the qualifying facility does not provide firm power to the utility, no capacity component may be included in the compensation paid to the qualifying facility. Part O. TIME-OF-DAY PURCHASE RATES Subpart 1. Applicability. Time-of-day rates are required for qualifying facilities with capacity of 40 kilowatts or more and less than or equal to 100 kilowatts, and they are optional for qualifying facilities with capacity less than 40 kilowatts. Time-of-day rates are also optional for qualifying facilities with capacity greater than 100 kilowatts if these qualifying facilities provide firm power. Subp. 2. Method of billing. The qualifying facility must be billed for all energy and capacity it consumes during each billing period according to the utility's applicable retail rate schedule. Subp. 3. Compensation to qualifying facility; energy purchases. The utility shall purchase all energy which is made available to it by the qualifying facility. Compensation to the qualifying facility must be the energy rate shown on schedule 4. Subp. 4. Compensation to qualifying facility; capacity purchases. If the qualifying facility provides firm power to the utility, the capacity component must be the capacity cost per kilowatt shown on schedule 4 divided by the number of on-peak hours in the billing period. The capacity component applies only to deliveries during on-peak hours. If the qualifying facility does not provide firm power to the utility, no capacity component may be included in the compensation paid to the qualifying facility. Part P. ROLL-OVER CREDIT PURCHASE RATES Subpart 1. Applicability. The roll-over credit rate is available only to qualifying facilities with capacity of less than 40 kilowatts which choose not to offer electric power for sale on average retail utility energy rate basis, time-of-day basis or simultaneous purchase and sale basis. Subp. 2. Method of billing. The utility shall bill the qualifying facility for the excess of energy supplied by the utility above energy supplied by the qualifying facility during each billing period according to the utility 6 Subp. 3. Additional calculations for billing. When the energy generated by the qualifying facility exceeds that supplied by the utility during a billing period, the utility shall apply the excess kilowatt hours as a credit to the next billing period kilowatt hour usage. Excess kilowatt hours that are not offset in the next billing period shall continue to be rolled over to the next consecutive billing period. Any excess kilowatt hours rolled over that are remaining at the end of each calendar year shall cancel with no additional compensation. Part Q. CONTRACTS NEGOTIATED BY CUSTOMER A qualifying facility with capacity greater than 100 kilowatts must negotiate a contract with the utility setting the applicable rates for payments to the customer of avoided capacity and energy costs. Subpart 1. Amount of capacity payments. The qualifying facility which negotiates a contract under part Q must be entitled to the full avoided capacity costs of the utility. The amount of capacity payments will be determined by the Subp. 2. Full avoided energy costs. The qualifying facility which negotiates a contract under part Q must be entitled to the full avoided energy costs of the utility. The costs must be adjusted as appropriate to reflect line losses. Part R. WHEELING distribution system and choose to sell the output of the qualifying facility to any other utility, must pay any appropriate wheeling charges to the utility. Within 15 days of receiving payment from the the payment less the charges it has incurred and its own reasonable wheeling costs. Part S. NOTIFICATION TO CUSTOMERS Subpart 1. Contents of written notice. Following each annual review and approval by the utility of the cogeneration rate tariffs the utility shall furnish in the monthly newsletter or similar mailing, written notice to each of its customers that the utility is obligated to interconnect with and purchase electricity from cogenerators and small power producers. Subp. 2. Availability of information. The utility shall make available to all interested persons upon request, the interconnection process and requirements adopted by the utility, pertinent rate schedules and sample contractual agreements. Part T. DISPUTE RESOLUTION In case of a dispute between a utility and a qualifying facility or an impasse in the negotiations between them, either party may request the governing body to determine the issue. Part U. INTERCONNECTION CONTRACTS 7 Subpart 1. Interconnection standards. The utility shall provide a customer applying for and requirements. Subp. 2. Existing contracts. Any existing interconnection contract executed between the utility and a qualifying facility with capacity of less than 40 kilowatts remains in force until terminated by mutual agreement of the parties or as otherwise specified in the contract. The governing body has assumed all dispute responsibilities as listed in existing interconnection contracts. Disputes are resolved in accordance with Part T. Subp. 3. Renewable energy credits; ownership. Generators own all renewable energy credits unless other ownership is expressly provided for by a contract between a generator and the utility. Part V. UNIFORM CONTRACT The form for uniform contract that shall be used between the utility and a qualifying facility having less than 40 kilowatts of capacity is as shown in subpart 1. Subpart 1. Uniform Contract for Cogeneration and Small Power Production Facilities. (See attached contract form.) 8 All DG (Cogeneration) Usage Month (Billed Total KWH Delivered to Total KWH Delivered to Electric Energy Sold Back to Net KWH Billed to Next Month)HUCCustomerHUC (KWH)Customer January 2019687272,8190272,132 February 2019348275,9350275,587 March 20192,535251,781560249,246 April 20195,378277,784443272,406 May 20196,325233,550314227,225 June 20194,778188,0020183,224 July 20194,785224,0700219,285 August 20195,270167,4330162,163 September 20193,480207,5780204,098 October 20193,429240,012151236,583 November 20191,352169,0920167,740 December 2019265230,5270230,262 ƚƷğƌƭЌБͲЏЌЋЋͲАЌБͲЎБЌЊͲЍЏБЋͲЏВВͲВЎЊ DG (Cogeneration) - Under 40 KW Usage Month (Billed Total KWH Delivered to Total KWH Delivered to Electric Energy Sold Back to Net KWH Billed to Next Month)HUCCustomerHUC (KWH)Customer January 20195876,05905,472 February 20192785,55505,277 March 201911854,8815603,696 April 201912584,2244432,966 May 201913953,7502842,355 June 20199484,52203,574 July 20199055,76004,855 August 201915403,87302,333 September 201911303,31802,188 October 201914692,7621511,293 November 20196822,88202,200 December 20192653,61703,352 ƚƷğƌƭЊЊͲЏЍЋЎЊͲЋЉЌЊͲЍЌБЌВͲЎЏЊ HUTCHINSON UTILITIES COMMISSION Board Action Form Agenda Item: Plant#2GroundingTransformer-AdvertisementforBids Presenter:Agenda Item Type: J.Carter NewBusiness Time Requested (Minutes): 5 Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: StaffisrequestingBoardapprovaltoadvertiseforbidstoreplacethePlant#2grounding transformerwhichwasdestroyedinSept2019. HUCwillreceivesealedbidsattheHutchinsonUtilitiesofficeuntil2pmonMarch31, 2020andthenpubliclyopenandreadaloudsuchBidsonthefollowingequipment: "Plant28.0MVAZIGZAGGroundingTransformer" BOARD ACTION REQUESTED: Approveadvertisementforbids-Plant#2GroundingTransformer Fiscal Impact: $0 Included in current budget: Budget Change: Yes No PROJECT SECTION: Total Project Cost: Remaining Cost: A Qualus Power Services Company A Qualus Power Services Company HUTCHINSON UTILITIES COMMISSION Board Action Form Agenda Item: Plant#225/46.7MVATransformer-AdvertisementforBids Presenter:Agenda Item Type: J.Carter NewBusiness Time Requested (Minutes): 5 Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: StaffisrequestingBoardapprovaltoadvertiseforbidstoreplacethemainPlant#2 transformerwhichwasdestroyedinSept2019. HUCwillreceivesealedbidsattheHutchinsonUtilitiesofficeuntil2pmonMarch31, 2020andthenpubliclyopenandreadaloudsuchBidsonthefollowingequipment: "Plant225/46.7MVALTCTransformer" BOARD ACTION REQUESTED: Approveadvertisementforbids-Plant#225/46.7MVATransformer Fiscal Impact: $0 Included in current budget: Budget Change: Yes No PROJECT SECTION: Total Project Cost: Remaining Cost: A Qualus Power Services Company A Qualus Power Services Company