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05-27-2020 HUCCP HUTCHINSON UTILITIES COMMISSION AGENDA REGULAR MEETING May 27, 2020 3:00 p.m. 1. CONFLICT OF INTEREST 2. APPROVE CONSENT AGENDA a. Approve Minutes b. Ratify Payment of Bills 3. APPROVE 2019 FINANCIAL AUDIT PRESENTATION BY BRENDA PARSLEY 4. APPROVE FINANCIAL STATEMENTS 5. OPEN FORUM 6. COMMUNICATION a. City Administrator b. Divisions c. Human Resources d. Legal e. General Manager 7. POLICIES a. Review Policies i. Section 5 of Exempt Handbook ii. Section 5 of Non-Exempt Handbook b. Approve Changes 8. UNFINISHED BUSINESS 9. NEW BUSINESS 10. ADJOURN MINUTES Regular MeetingHutchinson Utilities Commission Wednesday, April 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 Cheney declared conflict of interest in voting on agenda item 2b Ratify Payment of Bills; Redline Cheney will be abstaining. 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Hanson, second by Commissioner Morrow to approve the Consent Agenda. Motion carried unanimously. 3. Approve Financial Statements GM Carter presented the Financial Statements. First quarter of the year is trending the same as 2019. Electric Division has increased with it being a bit warmer than last year. Net loss decreased by $156,914 despite having consistent revenues. This is due mostly to lower purchased power and a large drop in transmission. Usage was up but revenue did not increase proportionately that same amount due to no power cost adjustment added for the first time since May 2018. In the Natural Gas Division, gas usage was down from the prior year due to a warmer March compared to 2019. Net profit is down by $112,807 but continuing to trend fairly well. Continuing to keep an eye on how the pandemic is affecting retail, commercial and residential. Staff is tracking weekly loads, as of now loads are tracking down 1-3%. April financials will show a better idea of the load classification breakout. Discussions were held on what HUC and surrounding communities are experiencing from customers. Staff will begin to track and provide a monthly report to watch the trend of how the pandemic is affecting HUC loads and receivables. Motion by Commissioner Cheney, second by Commissioner Wendorff to approve the financial statements. Motion carried unanimously. 4. Open Forum 5. Communication a. City Administrator Matthew Jaunich Absent b. Divisions 1 i. Dan Lang, Engineering Services Manager Absent ii.Dave Hunstad, Electric Transmission/DistributionManager Absent iii. Randy Blake, Production Manager Absent iv. John Webster, Natural Gas Division Director Absent v. Jared Martig, Financial Manager- Absent c. Human Resources - Brenda Ewing Absent d. Legal Marc Sebora i. Nothing to report e. General Manager Jeremy Carter i. HUC received RP3 Recognition and Safety Recognition. President Martinez recognized and thanked the Staff; this is a great reflection to HUC. ii. Legislative Update iii. Continuing to work on alternating half crew shifts. Will continue with this schedule until May 29. iv. Transformer bid update. May need to have a special meeting between now and the May meeting to reject all bids, there were multiple bids that had arithmetic errors and missing information. v. Insurance claim recap 6. Policies a. Review Policies i. Section 4 of Exempt Handbook ii. Section 4 of Non-Exempt Handbook No changes recommended at this time. b. Approve Changes i. Compensation Plan Exempt and Non Exempt Handbook GM Carter noted descriptions/roles have been updated, along with mirroring the plan that was approved by the Commission Board in 2019. A motion by Commissioner Hanson, second by Commissioner Cheney to Approve Policy changes. Motion carried unanimously. 7. Unfinished Business a. None 8. New Business a. Approve Requisition #8394 Utility Service Body for 2020 Welding Vehicle GM Carter presented Requisition #8394 Utility Service Body for 2020 Welding 2 Vehicle. In compliance with the 2020 Fleet Management Program, the Natural Gas Division is to replace vehicle #357. The Commission in the January 2020 meeting approved the purchase of the cab and chassis. A motion by Commissioner Morrow, second by Commissioner Hanson to Approve Requisition #8394 Utility Service Body for 2020 Welding Vehicle. Motion carried unanimously. b. Approve HTI/TDK Natural Gas Transportation and Commodity Purchase Agreement GM Carter presented HTI/TDK Natural Gas Transportation and Commodity Purchase Agreement. Staff did not have the needed information in place when the packet was completed last week. This agreement provides transportation and one-year term, keeping the terms similar to 3M. A motion by Commissioner Wendorff, second by Commissioner Cheney to Approve HTI/TDK Natural Gas Transportation and Commodity Purchase Agreement. Motion carried unanimously. vi. Adjourn There being no further business, a motion by Commissioner Morrow, second by Commissioner Hanson to adjourn the meeting at 3:42p.m. Motion carried unanimously. __________________________ Robert Wendorff, Secretary ATTEST: _________________________ Don Martinez, President 3 MINUTES SpecialMeetingHutchinson Utilities Commission Thursday, May 7, 2020 Call to order 7:30 a.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 The purpose of the special meeting is to Reject Bids on Plant #2 Grounding Transformer and 25/46.7 MVA Transformer, Approve Advertisement for Bids on Plant #2 Grounding Transformer and 25/46.7 MVA Transformer and Approve Construction Agreement between GRE and HUC for the McLeod Substation Capacitor Bank. GM Carter recapped that back in March the Commission approved to amend the date of the Advertisement for Bids on Plant #2 Grounding Transformer and Plant #2 25/46.7 MVA Transformer, due to the current business operations and people working from home. The extension was for an additional 3 weeks on the submittal date to be moved to April 21, with the extension of the date it was also stated that contractors did not need to come in house for a site inspection visit. Staff believed extending the advertisement for bid date was a better alternative than not receiving or receiving very few bid responses while businesses are working through the circumstances surrounding the COVID-19 Pandemic. By amending the Advertisement for Bids, this created two amendments that needed to be acknowledged, which is typical. For the MVA LTC Transformer, only 2 out of 7 acknowledged the date change. Aside of the amendments not being acknowledged there were bids that came in with arithmetic errors, a bid bond coming in late that was not addressed to HUC and one bid having no cost of the oil, which was left as a variable. For the Zig Zag Grounding Transformer 4 out of 5 came in correctly. HUC would like to reject all bids for Plant #2 Grounding Transformer and 25/46.7 MVA Transformer. Commissioner Morrow inquired if there would be any objection from the contractors that did complete the bids appropriately. Mr. Sebora stated that contractors may question, however it is stated multiple times throughout the document that HUC can reject all bids. GM Carter added even though we would be rebidding the transformers, there is a risk of not receiving bid bonds, arithmetic errors, some contractors leaving, new contractors may want to bid or bid amounts may change. Mr. Sebora stated an option going forward is to have Staff develop a checklist to include with the specifications document that is provided to contractors that may bid. This may eliminate errors going forward. Commissioner Hanson was concerned about A motion by Commissioner Hanson second by Commissioner Morrow to Approve Rejecting Bids on Plant #2 Grounding Transformer and 25/46.7 MVA Transformer. Motion carried unanimously. GM Carter presented Approval of Re-advertising for Bids on Plant #2 Grounding Transformer 1 and 25/46.7 MVA Transformer. This is the next step after rejection of the previous Bids that were received. Staff is looking to have the Advertisement of Bids in the paper starting May 13 and have the bid opening on May 27; this will push back the process by 4 weeks. Staff is anticipating 6-9 month lead times due to the COVID-19 pandemic. There is a concern from Staff when it comes to May-June 2021 to pull out the backup and when the new one is being built how long this may take. Staff would like to have this completed before the high loads so not to put load on other transformers. Staff does plan on prepping and having the area ready ahead of time, but will keep the Commission informed on any lead times that may be heard. A motion by Commissioner Cheney second by Commissioner Wendorff to Approve Advertisement for Bids on Plant #2 Grounding Transformer and 25/46.7 MVA Transformer Motion carried unanimously. GM Carter presented the HUC/GRE McLeod Substation Capacitor Bank Construction Agreement. Staff is recommending entering into an agreement with Great River Energy to design, construct, and commission the capacitor bank addition at the McLeod Substation for HUC. MISO is directing HUC to make this addition as part of the transmission upgrades required for the new generation installations planned throughout the MISO region. This is the last agreement that will need to be signed. In 2016, the transmission facilities assignment agreement was signed and in December 2019 the multi-party construction agreement between MRES, MISO and wind developers was brought to the Commission. Conversation were held on the reimbursement process to this project along with keeping wind A motion by Commissioner Hanson second by Commissioner Cheney to Approve HUC/GRE McLeod Substation Capacitor Bank Construction Agreement. Motion carried unanimously. GM Carter provided an MRES update on a diversified portfolio with wind and solar, offering more renewables. There being no further business, a motion by Commissioner Morrow, second by Commissioner Wendorff to adjourn the meeting at 8:09a.m. Motion carried unanimously. __________________________ Robert Wendorff, Secretary ATTEST: _________________________ Don Martinez, President 2 Government Auditing Standards Management's Responsibility for the Financial Statements Auditor's Responsibility Government Auditing Standards, Opinion Report on Partial Comparative Information Other Matters Required Supplementary Information Supplementary and Other Information Government Auditing Standards Government Auditing Standards, Government Auditing Standards Custodial Credit Risk Interest Rate Risk - Credit Risk - Concentration of Credit Risk: Custodial Credit Risk - Government Auditing Standards, Minnesota Legal Compliance Audit Guide for Cities, GOVERNMENT AUDITING STANDARDS Government Auditing Standards Government Auditing Standards. Government Auditing Standards Government Auditing Standards, Qualitative Aspects of Accounting Practices Qualitative Aspects of Accounting Practices Difficulties Encountered in Performing the Audit Corrected and Uncorrected Misstatements Disagreements with Management Management Representations Management Consultations with Other Independent Accountants Other Audit Findings or Issues Other Matters Postponement of the Effective Dates of Certain Authoritative Guidance, Hutchinson Utilities Commission AuditReport December31,2019 IndependentAuditorsReport tğŭĻƭЋЍʹ Financialstatementsaretheresponsibilityofthe management Ourresponsibilityistoexpressanopiniononthesefinancialstatements basedonouraudit ConductedauditinaccordancewithGenerallyAcceptedAuditing StandardsandGovernmentAuditingStandards Obtainreasonableassurancefinancialsarefreefrommaterial misstatement CźƓğƓĭźğƌƭƷğƷĻƒĻƓƷƭƚŅƷŷĻ/ƚƒƒźƭƭźƚƓğƩĻƦƩĻƭĻƓƷĻķŅğźƩƌǤźƓƚǒƩ ƚƦźƓźƚƓ 1 IndependentAuditorsReport(Contd) tğŭĻƭЋЍʹ RequiredSupplementaryInformation DiscussionandAnalysis(pages59) AdditionalRequiredSupplementaryInformation (pages3641) Internalcontrolletteronpages56and57 2 StatementofNetPosition 3 CashandInvestmentBalances $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 20152016201720182019 Operating$8,605,434$10,185,906$10,311,734$13,283,267$15,544,372 Restricted 2,567,9402,539,62517,983,7278,037,1303,575,572 Designated 4,034,7895,355,9285,716,0356,575,4686,841,236 4 StatementofRevenues,Expensesand ChangesinNetPosition 5 ElectricDivision $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 $(5,000,000) 20152016201720182019 TotalOperatingRevenues $26,802,066$27,148,511$27,656,979$28,745,389$27,982,592 TotalOperatingExpenses27,169,32127,406,18127,925,96228,635,90427,994,698 NetNonoperatingRevenues(Expenses) (201,467)52,536(8,337)(283,198)(239,498) 6 ElectricDivision $500,000 $300,000 $100,000 $(100,000) $(300,000) $(500,000) $(700,000) 20152016201720182019 ChangeinNet $(568,722)$(205,134)$(277,320)$(173,713)$(251,604) Position 7 RevenueperKWH 8 NaturalGasDivision $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 $(2,000,000) 20152016201720182019 TotalOperatingRevenues$11,341,497$11,358,212$12,378,636$12,747,746$12,409,516 TotalOperatingExpenses 9,134,5169,043,92310,126,0299,323,0049,848,199 NetNonoperatingRevenues(Expenses) (536,019)(269,688)(403,706)(192,296)(22,470) 9 NaturalGasDivision $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 20152016201720182019 ChangeinNetPosition$1,670,962$2,044,601$1,848,901$3,232,446$2,538,847 10 RevenueperMCF 11 Communications AccountingPractices DifficultiesEncountered CorrectedandUncorrectedMisstatements DisagreementswithManagement ManagementRepresentations ManagementConsultationswithOtherAccountants OtherAuditFindingsorIssues 12 GeneralRecommendations Crosstraining CapitalAssetAccounting GovernmentalAccountingStandardsBoardStatement No.95 13 QuestionsorComments? /ƚƓƷğĭƷźƓŅƚƩƒğƷźƚƓʹ BrendaParsley,CPA bparsley@cdscpa.com 3202353311 JustinMcGraw,CPA jmcgraw@cdscpa.com 3206937975 14 HUTCHINSON UTILITIES COMMISSION COMBINED DIVISIONS FINANCIAL REPORT FOR APRIL, 2020 April, 2020 MonthYear to Date 33.3% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Combined Division Customer Revenue$ 2,511,903 $ 2,662,640 $ (150,737)(5.7%)$ 12,109,588 $ 13,199,355 $ (1,089,767)(8.3%)$ 35,819,11633.8% Sales for Resale$ 150,740$ 171,304$ (20,564) (12.0%)$ 617,072$ 818,741$ (201,669)(24.6%)$ 3,007,25020.5% NU Transportation$ 82,524$ 82,635$ (111)(0.1%)$ 330,106$ 328,596$ 1,510 0.5%$ 898,64036.7% Electric Division Transfer$ 55,440$ 54,982$ 4580.8%$ 221,761$ 219,928$ 1,833 0.8%$ 665,28333.3% Other Revenues$ 34,855$ 43,650$ (8,795)(20.1%)$ 240,765$ 181,495$ 59,27032.7%$ 466,20751.6% Interest Income$ 34,049$ 40,052$ (6,004)(15.0%)$ 196,787$ 166,167$ 30,62018.4%$ 383,45651.3% TOTAL REVENUES$ 2,869,511 $ 3,055,263 $ (185,752)(6.1%)$ 13,716,079 $ 14,914,282 $ (1,198,203)(8.0%)$ 41,239,95233.3% Salaries & Benefits$ 554,473$ 504,543$ 49,9309.90%$ 2,171,875$ 2,092,686$ 79,1893.8%$ 6,946,88031.3% Purchased Commodities$ 1,359,986 $ 1,406,331 $ (46,345) (3.3%)$ 6,771,235$ 7,642,052$ (870,817)(11.4%)$ 19,252,47735.2% Transmission$ 172,472$ 204,935$ (32,463) (15.8%)$ 601,007$ 818,570$ (217,563)(26.6%)$ 2,680,00022.4% Generator Fuel/Chem.$ 21,081$ 8,902$ 12,179136.8%$ 56,774$ 86,136$ (29,362)(34.1%)$ 825,8756.9% Depreciation$ 327,083$ 327,083$ -0.0%$ 1,308,333$ 1,308,333$ -0.0%$ 3,925,00033.3% Transfers (Elect./City)$ 211,040$ 188,434$ 22,60612.0%$ 844,161$ 753,736$ 90,42612.0%$ 2,532,47533.3% Operating Expense$ 216,934$ 172,245$ 44,68925.9%$ 785,019$ 738,030$ 46,9896.4%$ 2,605,31330.1% Debt Interest$ 89,542$ 97,334$ (7,792)(8.0%)$ 358,169$ 389,335$ (31,167)(8.0%)$ 1,074,50733.3% TOTAL EXPENSES$ 2,952,611 $ 2,909,808 $ 42,8041.5%$ 12,896,575 $ 13,828,879 $ (932,304)(6.7%)$ 39,842,52732.4% NET PROFIT/(LOSS)$ (83,101)$ 145,455$ (228,556)(157.1%)$ 819,504$ 1,085,402$ (265,899)(24.5%)$ 1,397,42558.6% Combined Divisions - Financial/Operating Ratios AprilAprilYTD YTD 2020HUC 20202019Change20202019ChangeBudgetTarget Gross Margin %33.1%36.4%-3.3%34.7%33.8%0.8%34.6%26% - 28% Operating Income Per Revenue $ (%)-2.2%6.1%-8.3%5.9%8.3%-2.4%4.6%1%-4% Net Income Per Revenue $ (%):-2.9%4.8%-7.7%6.0%7.3%-1.3%3.4%0%-1% Notes/Graphs: HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION FINANCIAL REPORT FOR APRIL, 2020 April, 2020 MonthYear to Date 33.3% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Electric Division Customer Revenue$ 1,738,405$ 1,897,286$ (158,881)(8.4%)$ 7,513,225$ 7,898,770$ (385,545) (4.9%)$ 25,627,44829.3% Sales for Resale$ 150,740$ 171,304 $ (20,564)(12.0%)$ 617,072$ 818,741$ (201,669) (24.6%)$ 3,007,25020.5% Other Revenues$ 13,190$ 18,840$ (5,650) (30.0%)$ 166,729$ 74,050$ 92,679125.2%$ 179,49992.9% Interest Income$ 18,418$ 21,420$ (3,002) (14.0%)$ 103,969$ 89,042$ 14,92716.8%$ 208,45649.9% TOTAL REVENUES$ 1,920,753$ 2,108,849$ (188,096)(8.9%)$ 8,400,995$ 8,880,603$ (479,607) (5.4%)$ 29,022,65328.9% Salaries & Benefits$ 411,563$ 370,837 $ 40,72611.0%$ 1,620,935$ 1,550,375$ 70,5604.6%$ 5,074,75931.9% Purchased Power$ 937,802$ 987,904 $ (50,102)(5.1%)$ 4,139,049$ 4,555,553$ (416,505) (9.1%)$ 13,480,33230.7% Transmission$ 172,472$ 204,935 $ (32,463)(15.8%)$ 601,007$ 818,570$ (217,563) (26.6%)$ 2,680,00022.4% Generator Fuel/Chem.$ 21,081$ 8,902$ 12,179136.8%$ 56,774 $ 86,136$ (29,362) (34.1%)$ 825,8756.9% Depreciation$ 241,667$ 241,667 $ -0.0%$ 966,667$ 966,667$ -0.0%$ 2,900,00033.3% Transfers (Elect./City)$ 163,236$ 147,172 $ 16,06410.9%$ 652,942$ 588,687$ 64,25510.9%$ 1,958,82633.3% Operating Expense$ 151,557$ 126,704 $ 24,85319.6%$ 485,078$ 490,153$ (5,074)(1.0%)$ 1,654,94329.3% Debt Interest$ 44,471$ 46,555$ (2,083) (4.5%)$ 177,885$ 186,219$ (8,333)(4.5%)$ 533,65733.3% TOTAL EXPENSES$ 2,143,848$ 2,134,675$ 9,1730.4%$ 8,700,338$ 9,242,360$ (542,023) (5.9%)$ 29,108,39229.9% NET PROFIT/(LOSS)$ (223,095)$ (25,826) $ (197,269)763.9%$ (299,342)$ (361,758)$ 62,415(17.3%)$ (85,739)349.1% April, 2020 MonthYear to Date 33.3% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Electric Division Residential3,643,9703,499,068 144,902 4.14%15,746,54615,880,995 (134,449) (0.85%) 51,590,88930.5% All Electric188,418177,589 10,8296.10%1,094,4201,183,418 (88,998) (7.52%) 2,545,49743.0% Small General1,192,6491,422,183 (229,534)(16.14%)5,860,0866,298,663 (438,577) (6.96%) 18,956,24830.9% Large General5,771,9506,449,580 (677,630)(10.51%)24,274,62025,683,960 (1,409,340) (5.49%) 79,933,58330.4% Industrial9,574,0009,718,000 (144,000)(1.48%)38,223,00037,243,000 980,000 2.63% 129,279,66629.6% Total KWH Sold 20,370,987 21,266,420 (895,433)(4.21%) 85,198,672 86,290,036 (1,091,364)(1.26%) 282,305,88330.2% Financial/Operating Ratios AprilAprilYTD YTD 2020HUC 20202019Change20202019ChangeBudgetTarget Gross Margin %24.1%29.5%-5.5%26.6%25.4%1.2%28.7%24% - 28% Operating Income Per Revenue $ (%)-11.1%0.0%-11.0%-4.4%-3.1%-1.3%0.8%0%-5% Net Income Per Revenue $ (%):-11.6%-1.2%-10.4%-3.6%-4.1%0.5%-0.3%0%-5% Customer Revenue per KWH:$0.0853$0.0892-$0.0039$0.0878$0.0911-$0.0033$0.0903$0.0903 Total Power Supply Exp. per KWH:$0.0705$0.0692$0.0013$0.0703$0.0759-$0.0056$0.0728$0.0728 Notes/Graphs: Net Loss increased by $197,269 mostly due to decreased revenues. Usage was up in the residential class but down in the commercial classes. Over half the decrease in revenue can be attributed to no power cost adjustment in 2020 compared to the PCA bringing in an additional $105,517 in 2019. Sales for Resale of $150,740 consisted of $1,240 in market sales, $136,000 in capacity sales to SMMPA and $13,500 in capacity sales to AEP. April 2019 Sales for Resale of $171,304 consisted of $4,150 in market sales, $36,400 in monthly tolling fees from Transalta, $14,754 in Transalta energy sales, and $116,000 in capacity sales to SMMPA. April 2018 Sales for Resale of $265,443 consisted of $30,816 in market sales, $35,600 in Transalta tolling fees, $103,027 in Transalta energy sales, and $96,000 SMMPA capacity sales. Overall Purchased Power decreased by $50,102. MRES purchases decreased by $20 and market purchases/MISO costs decreased by $50,082. There was no power cost adjustment for April leaving the total at $249,141 YTD. Last year's power cost adjustment for April 2019 generated $105,517 in additional revenue for the month and $560,674 YTD. HUTCHINSON UTILITIES COMMISSION GAS DIVISION FINANCIAL REPORT FOR APRIL, 2020 April, 2020 MonthYear to Date 33.3% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Gas Division Customer Revenue$ 773,498$ 765,354$ 8,1441.1%$ 4,596,363 $ 5,300,585$ (704,223)(13.3%)$ 10,191,66845.1% Transportation$ 82,524$ 82,635 $ (111)(0.1%)$ 330,106$ 328,596 $ 1,5100.5%$ 898,640 36.7% Electric Div. Transfer$ 55,440$ 54,982 $ 4580.8%$ 221,761$ 219,928 $ 1,8330.8%$ 665,283 33.3% Other Revenues$ 21,665$ 24,810 $ (3,145)(12.7%)$ 74,036$ 107,445 $ (33,409)(31.1%)$ 286,708 25.8% Interest Income$ 15,630$ 18,632 $ (3,002)(16.1%)$ 92,817$ 77,125$ 15,692 20.3%$ 175,000 53.0% TOTAL REVENUES$ 948,758$ 946,413$ 2,3440.2%$ 5,315,083 $ 6,033,679$ (718,596)(11.9%)$ 12,217,29943.5% Salaries & Benefits$ 142,910$ 133,706$ 9,2056.9%$ 550,940$ 542,311 $ 8,6291.6%$ 1,872,12129.4% Purchased Gas$ 422,184$ 418,427$ 3,7570.9%$ 2,632,187 $ 3,086,499$ (454,312)(14.7%)$ 5,772,14545.6% Operating Expense$ 65,378$ 45,542 $ 19,83643.6%$ 299,941$ 247,878 $ 52,063 21.0%$ 950,370 31.6% Depreciation$ 85,417$ 85,417 $ -0.0%$ 341,667$ 341,667 $ -0.0%$ 1,025,00033.3% Transfers (City)$ 47,804$ 41,262 $ 6,54215.9%$ 191,219$ 165,048 $ 26,171 15.9%$ 573,649 33.3% Debt Interest$ 45,071$ 50,779 $ (5,708)0.0%$ 180,283$ 203,117 $ (22,833)(11.2%)$ 540,850 33.3% TOTAL EXPENSES$ 808,764$ 775,133$ 33,6314.3%$ 4,196,237 $ 4,586,519$ (390,282)(8.5%)$ 10,734,13539.1% NET PROFIT/(LOSS)$ 139,994$ 171,281$ (31,287) (18.3%)$ 1,118,846 $ 1,447,160$ (328,314)(22.7%)$ 1,483,16475.4% April, 2020 MonthYear to Date 33.3% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Gas Division Residential32,510,71333,320,832 (810,119) (2.43%)223,891,927258,760,708 (34,868,781)(13.48%) 422,479,00053.0% Commercial22,573,11924,659,973 (2,086,854)(8.46%)162,891,562185,016,789 (22,125,227)(11.96%) 331,731,00049.1% Industrial74,756,56566,307,737 8,448,82812.74%364,874,847365,108,704 (233,857)(0.06%) 803,079,00045.4% Total CF Sold 129,840,397 124,288,542 5,551,8554.47% 751,658,336 808,886,201 (57,227,865)(7.07%) 1,557,289,00048.3% Financial/Operating Ratios AprilAprilYTD YTD 2020HUC 20202019Change20202019ChangeBudgetTarget Gross Margin %51.9%52.3%-0.4%47.4%46.4%1.0%49.0%37%-42% Operating Income Per Revenue $ (%)16.2%20.3%-4.1%22.2%25.4%-3.2%13.8%11%-16% Net Income Per Revenue $ (%):15.4%19.0%-3.6%21.7%24.7%-3.0%12.6%6%-11% Contracted Customer Rev. per CF:$0.0035$0.0038-$0.0003$0.0037$0.0042-$0.0006$0.0040$0.0040 Customer Revenue per CF:$0.0088$0.0084$0.0004$0.0082$0.0083-$0.0001$0.0089$0.0089 Total Power Supply Exp. per CF:$0.0034$0.0035($0.0001)$0.0036$0.0039($0.0003)$0.0039$0.0039 Notes/Graphs: April 2020 numbers are very similar to April 2019 but we remain below 2019 levels due mostly to the much warmer 1st quarter 2020 compared to 2019. April's fuel cost credit adjustment was $1.05547/MCF totalling $63,253 for the month and $415,602 YTD. April 2019 credits totalled $89,910 for the month and $478,012 YTD. HUTCHINSONUTILITIESCOMMISSION BALANCESHEET-CONSOLIDATED APRIL 30, 2020 ElectricGasTotalTotal Net Change DivisionDivision20202019Total(YTD) Current Assets Cash 5,619,665.10 10,444,951.22 16,064,616.32 17,122,795.14 (1,058,178.82) 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 450,580.31 - 450,580.31 372,736.68 77,843.63 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 1,091,106.77 - 1,091,106.77 993,190.06 97,916.71 Bond Interest Payment 2012 - 831,604.16 831,604.16 821,262.50 10,341.66 Debt Service Reserve Funds 522,335.64 2,188,694.02 2,711,029.66 2,711,029.66 - Total Current Assets 12,127,910.82 1 5,490,375.01 27,618,285.83 2 8,224,594.65 (606,308.82) Receivables Accounts (net of uncollectible allowances) 1,940,543.75 1,016,936.50 2,957,480.25 2,987,435.36 (29,955.11) Interest 57,982.32 57,982.32 115,964.64 47,264.58 68,700.06 Total Receivables 1,998,526.07 1 ,074,918.82 3,073,444.89 3 ,034,699.94 38,744.95 Other Assets 1,479,218.41 457,925.33 1,672,824.66 Inventory 1,937,143.74 264,319.08 166,449.82 10,272.22 101,410.41 Prepaid Expenses 176,722.04 75,311.63 100,007.84 - Sales Tax Receivable 100,007.84 40,413.56 59,594.28 Deferred Outflows - Electric 219,249.00 - 219,249.00 494,053.00 (274,804.00) Deferred Outflows - Gas - 73,083.00 73,083.00 164,685.00 (91,602.00) 1,964,925.07 5 41,280.55 2,506,205.62 2 ,473,386.63 32,818.99 Total Other Assets Total Current Assets 16,091,361.96 1 7,106,574.38 33,197,936.34 3 3,732,681.22 (534,744.88) Capital Assets Land & Land Rights 690,368.40 3,899,918.60 4,590,287.00 4,590,287.00 - Depreciable Capital Assets 91,541,751.97 42,001,576.49 133,543,328.46 131,888,819.62 1,654,508.84 Accumulated Depreciation (58,867,048.94) (17,506,553.53) (76,373,602.47) (72,566,123.76) (3,807,478.71) Construction - Work in Progress 16,084,578.55 282,386.07 16,366,964.62 14,705,854.83 1,661,109.79 Total Net Capital Assets 49,449,649.98 2 8,677,327.63 78,126,977.61 7 8,618,837.69 (491,860.08) Total Assets 6 5,541,011.94 4 5,783,902.01 1 11,324,913.95 1 12,351,518.91 ( 1,026,604.96) HUTCHINSONUTILITIESCOMMISSION BALANCESHEET-CONSOLIDATED APRIL 30, 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 1,679,349.51 737,626.87 2,416,976.38 2,852,961.98 (435,985.60) Accrued Expenses Accrued Interest 222,356.77 225,354.16 447,710.93 486,669.27 (38,958.34) Accrued Payroll 49,130.75 16,997.24 66,127.99 131,732.02 (65,604.03) Total Current Liabilities 2,595,837.03 2 ,620,586.59 5,216,423.62 5 ,651,971.59 (435,547.97) 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 588,284.88 1,036,312.75 1,624,597.63 1,843,662.91 (219,065.28) Pension Liability - Electric 2,686,985.00 - 2,686,985.00 2,700,290.00 (13,305.00) Pension Liability - Electric OPEB 76,502.00 - 76,502.00 72,192.00 4,310.00 Pension Liability - Nat Gas - 895,662.00 895,662.00 900,097.00 (4,435.00) Pension Liability - Nat Gas OPEB - 25,501.00 25,501.00 24,064.00 1,437.00 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 550,772.00 - 550,772.00 804,800.00 (254,028.00) Deferred Outflows - Nat Gas - 183,591.00 183,591.00 268,267.00 (84,676.00) Total Long-Term Liabilities 19,769,038.28 1 3,396,008.82 33,165,047.10 3 5,777,454.77 (2,612,407.67) Net Position Retained Earnings 43,176,136.63 29,767,306.60 72,943,443.23 70,922,092.55 2,021,350.68 Total Net Position 43,176,136.63 2 9,767,306.60 72,943,443.23 7 0,922,092.55 2,021,350.68 Total Liabilities and Net Position 65,541,011.94 4 5,783,902.01 111,324,913.95 1 12,351,518.91 (1,026,604.96) Hutchinson Utilities Commission Cash-Designations Report, Combined 4/30/2020 Change in Financial Annual Balance, Balance, Cash/Reserve InstitutionCurrent Interest RateInterestApril 2020 March 2020 Position Savings, Checking, Investmentsvariesvariesvaries 27,618,285.83 27,391,657.78 226,628.05 Total Operating Funds 27,618,285.83 27,391,657.78 226,628.05 Combined Division - Total Funds 27,618,285.83 27,391,657.78 226,628.05 Restricted Funds: Debt Reserve RequirementsBond Covenants - sinking fund 1,922,710.93 1,558,168.73 364,542.20 Debt Reserve RequirementsBond Covenants -1 year Max. P & I 2,711,029.66 2,711,029.66 - Total Restricted Funds 4,633,740.59 4,269,198.39 364,542.20 Excess Reserves Less Restrictions, Combined 22,984,545.24 23,122,459.39 (137,914.15) Designated Funds: Operating ReserveMin 60 days of 2020 Operating Bud. 5,981,005.00 5,981,005.00 - Rate Stabalization Funds 1,101,886.92 1,105,731.50 (3,844.58) 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 12,900,083.92 12,903,928.50 (3,844.58) Excess Reserves Less Restrictions & Designations, Combined 10,084,461.32 10,218,530.89 (134,069.57) Financial/Operating Ratios YEYEYEYEYTDHUC 20162017201820192020Target Debt to Asset32.2%40.2%37.7%35.1%34.5%<50% Current Ratio3.063.363.935.195.42>2.0 RONA2.17%1.82%3.43%2.26%0.81%>0% Notes/Graphs: Change in Cash Balance (From 12/31/14 to 4/30/2020) Month End ElectricElec. ChangeNatural GasGas Change TotalTotal Change 4/30/2020 12,127,911 15,490,375 27,618,286 12/31/2019 12,124,142 3,769 13,837,040 1,653,335 25,961,181 1,657,104 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 4/30/2020 Change in Financial Annual Balance, Balance, Cash/Reserve InstitutionInterestApril 2020 March 2020 Position Current Interest Rate Operating Funds: Savings, Checking, Investmentsvariesvariesvaries 27,618,285.83 27,391,657.78 226,628.05 Total HUC Operating Funds 27,618,285.83 27,391,657.78 226,628.05 Electric Division - Total Funds 12,127,910.82 12,170,314.74 (42,403.92) Restricted Funds: Debt Restricted RequirementsBond Covenants - sinking fund 1,091,106.77 892,885.41 198,221.36 Debt Restricted RequirementsBond Covenants -1 year Max. P & I 522,335.64 522,335.64 - Total Restricted Funds 1,613,442.41 1,415,221.05 198,221.36 Excess Reserves Less Restrictions, Electric 10,514,468.41 10,755,093.69 (240,625.28) Designated Funds: Operating ReserveMin 60 days of 2020 Operating Bud. 4,367,899.00 4,367,899.00 - Rate Stabalization Funds$400K-$1.2K 450,580.31 454,424.89 (3,844.58) 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 9,262,022.31 9,265,866.89 (3,844.58) Excess Reserves Less Restrictions & Designations, Electric 1,252,446.10 1,489,226.80 (236,780.70) Financial/Operating Ratios YEYEYEYEYTDAPPA RatioHUC 201620172018201920205K-10K Cust.Target Debt to Asset Ratio (* w/Gen.)16.7%35.4%35.7%34.4%34.1%50.1%<50% Current Ratio3.574.363.635.415.492.43>2.0 RONA-0.4%-0.6%-0.3%-0.5%-0.5%NA>0% Notes/Graphs: Hutchinson Utilities Commission Cash-Designations Report, Gas 4/30/2020 Change in Financial Annual Balance, Balance, Cash/Reserve InstitutionCurrent Interest RateInterestApril 2020 March 2020 Position Operating Funds: Savings, Checking, Investmentsvariesvariesvaries27,618,285.8327,391,657.78226,628.05 Total HUC Operating Funds 27,618,285.83 27,391,657.78 226,628.05 Gas Division - Total Funds 15,490,375.01 15,221,343.04 269,031.97 Restricted Funds: Debt Restricted RequirementsBond Covenants - sinking fund 831,604.16 665,283.32 166,320.84 Debt Restricted RequirementsBond Covenants -1 year Max. P & I 2,188,694.02 2,188,694.02 - Total Restricted Funds 3,020,298.18 2,853,977.34 166,320.84 Excess Reserves Less Restrictions, Gas 12,470,076.83 12,367,365.70 102,711.13 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 8,832,015.22 8,729,304.09 102,711.13 Financial/Operating Ratios YEYEYEYEYTDHUC 20162017201820192020APGA RatioTarget Debt to Asset51.2%47.6%40.7%36.2%35.0%TBD<50% Current Ratio2.592.744.334.985.35TBD>2.0 RONA5.6%5.0%8.3%6.6%2.8%TBD>0% Notes/Graphs: HUTCHINSON UTILITIES COMMISSION Investment Report For the Month Ended April 30, 2020 InterestCurrentDate ofDate ofParCurrentPurchaseUnrealizedPremiumNext InstitutionDescriptionRateYTMPurchaseMaturityValueValueAmountGain/(Loss)(Discount)Call Date Wells FargoMoney Market0.010%0.010%NANA - 75,486.26 - - -N/A Wells FargoCD's1.700%1.700%02/21/202002/22/2022 245,000.00 249,576.60 245,000.00 4,576.60 -N/A Wells FargoCD's1.300%1.300%03/31/202009/30/2021 245,000.00 247,484.30 245,000.00 2,484.30 -N/A Wells FargoCD's1.900%1.900%08/21/201908/23/2021 174,000.00 177,051.96 174,000.00 3,051.96 -N/A Wells FargoCD's2.500%2.500%04/02/201904/05/2021 245,000.00 249,735.85 245,000.00 4,735.85 -N/A Wells FargoCD's1.250%1.250%04/08/202004/08/2021 245,000.00 246,876.70 245,000.00 1,876.70 -N/A Wells FargoCD's2.000%2.000%10/07/201912/31/2020 245,000.00 245,742.35 245,000.00 742.35 -07/07/2020 Wells FargoCD's2.000%2.000%01/30/202001/30/2024 245,000.00 246,021.65 245,000.00 1,021.65 -07/30/2020 Wells FargoCD's2.000%2.000%08/29/202008/22/2022 200,000.00 204,114.00 200,000.00 4,114.00 -09/29/2020 Wells FargoCD's1.700%1.700%12/30/201907/08/2020 60,000.00 60,154.80 60,000.00 154.80 -N/A Wells FargoCD's2.000%2.000%01/10/202001/24/2025 245,000.00 245,441.00 245,000.00 441.00 -07/10/2020 Wells FargoCD's2.100%2.100%01/30/202007/30/2024 245,000.00 246,095.15 245,000.00 1,095.15 -07/30/2020 Wells FargoCD's2.000%2.000%01/29/202001/29/2024 245,000.00 245,980.00 245,000.00 980.00 -07/29/2020 Wells FargoCD's1.700%1.700%01/31/202005/03/2021 245,000.00 247,952.25 245,000.00 2,952.25 -N/A Wells FargoCD's1.750%1.750%01/29/202007/29/2021 245,000.00 248,662.75 245,000.00 3,662.75 -N/A Broker Total25.6% 3,129,000.00 3,236,375.62 3,129,000.00 31,889.36 - Cetera Investment ServicesMoney Market0.100%0.100%N/AN/A - 84,687.21 - - -N/A Cetera Investment ServicesMunicipal Bonds2.995%2.073%03/07/201607/01/2020 250,000.00 250,862.50 260,835.21 (9,972.71) 10,835.21N/A Cetera Investment ServicesMunicipal Bonds2.750%1.881%03/07/201608/01/2020 250,000.00 250,642.50 259,820.00 (9,177.50) 9,820.00N/A Cetera Investment ServicesMunicipal Bonds2.300%1.715%12/11/201710/01/2020 100,000.00 100,538.00 101,595.00 (1,057.00) 1,595.00N/A Cetera Investment ServicesMunicipal Bonds2.875%2.121%04/29/201609/01/2021 250,000.00 253,585.00 259,467.50 (5,882.50) 9,467.50N/A Cetera Investment ServicesMunicipal Bonds3.751%2.399%04/29/201611/01/2021 250,000.00 256,557.50 267,330.00 (10,772.50) 17,330.00N/A Cetera Investment ServicesMunicipal Bonds3.139%2.190%12/11/201709/01/2021 300,000.00 306,327.00 310,116.00 (3,789.00) 10,116.00N/A Cetera Investment ServicesMunicipal Bonds3.436%3.436%12/20/201812/15/2021 50,000.00 48,520.50 45,155.00 3,365.50 (4,845.00) N/A Cetera Investment ServicesMunicipal Bonds2.655%2.208%12/11/201703/01/2022 300,000.00 307,506.00 305,314.92 2,191.08 5,314.92N/A Cetera Investment ServicesMunicipal Bonds3.000%3.118%12/20/201808/01/2022 50,000.00 51,773.50 50,377.67 1,395.83 377.67N/A Cetera Investment ServicesMunicipal Bonds3.633%3.116%12/20/201809/01/2022 250,000.00 262,015.00 257,217.48 4,797.52 7,217.48N/A Cetera Investment ServicesMunicipal Bonds3.240%3.240%11/17/201702/15/2023 80,000.00 76,584.00 69,633.48 6,950.52 (10,366.52) N/A Cetera Investment ServicesMunicipal Bonds3.650%3.004%12/20/201802/01/2023 250,000.00 263,460.00 256,165.00 7,295.00 6,165.00N/A Cetera Investment ServicesMunicipal Bonds3.075%3.236%12/20/201806/01/2023 50,000.00 52,017.50 49,746.15 2,271.35 (253.85) N/A Cetera Investment ServicesMunicipal Bonds2.500%3.181%12/20/201808/01/2023 35,000.00 36,090.60 34,320.05 1,770.55 (679.95) N/A Cetera Investment ServicesMunicipal Bonds3.400%3.148%12/20/201811/01/2023 125,000.00 128,087.50 126,376.25 1,711.25 1,376.25N/A Cetera Investment ServicesMunicipal Bonds3.400%3.148%12/20/201811/01/2023 65,000.00 67,664.35 65,715.65 1,948.70 715.65N/A Cetera Investment ServicesMunicipal Bonds1.862%1.862%01/22/202011/01/2023 150,000.00 140,248.50 139,866.00 382.50 (10,134.00) N/A Cetera Investment ServicesMunicipal Bonds5.290%2.724%04/18/201906/01/2023 260,000.00 286,514.80 291,059.96 (4,545.16) 31,059.96N/A Cetera Investment ServicesMunicipal Bonds2.854%3.173%12/20/201802/01/2024 100,000.00 103,143.00 99,605.96 3,537.04 (394.04) N/A Cetera Investment ServicesMunicipal Bonds2.977%3.246%12/20/201803/15/2024 250,000.00 256,457.50 248,743.99 7,713.51 (1,256.01) N/A Cetera Investment ServicesMunicipal Bonds1.940%1.821%01/13/202005/01/2024 65,000.00 65,897.65 65,570.70 326.95 570.70N/A Cetera Investment ServicesMunicipal Bonds2.528%1.918%01/13/202012/01/2024 100,000.00 101,563.00 102,999.53 (1,436.53) 2,999.53N/A Cetera Investment ServicesMunicipal Bonds3.922%3.429%12/20/201812/01/2024 204,000.00 220,065.00 257,122.49 (37,057.49) 53,122.49N/A Cetera Investment ServicesMunicipal Bonds5.742%3.658%04/11/201908/01/2024 430,000.00 473,090.30 555,382.50 (82,292.20) 125,382.50N/A Cetera Investment ServicesMunicipal Bonds4.400%3.221%04/11/201907/01/2025 500,000.00 529,520.00 539,101.11 (9,581.11) 39,101.1107/01/2023 Cetera Investment ServicesMunicipal Bonds5.640%3.007%04/18/201908/15/2025 205,000.00 178,386.90 169,737.95 8,648.95 (35,262.05) N/A Cetera Investment ServicesMunicipal Bonds3.743%2.740%04/18/201909/15/2025 215,000.00 237,680.35 228,334.53 9,345.82 13,334.53N/A Cetera Investment ServicesMunicipal Bonds3.379%1.934%08/19/201910/01/2025 310,000.00 332,437.80 339,739.18 (7,301.38) 29,739.18N/A Cetera Investment ServicesMunicipal Bonds4.250%3.258%04/11/201901/01/2026 500,000.00 543,305.00 529,769.03 13,535.97 29,769.03N/A Cetera Investment ServicesMunicipal Bonds6.690%3.356%04/18/201904/15/2026 60,000.00 48,956.40 47,545.20 1,411.20 (12,454.80) N/A Cetera Investment ServicesMunicipal Bonds3.250%2.903%04/18/201908/01/2026 500,000.00 527,585.00 514,790.69 12,794.31 14,790.69N/A Cetera Investment ServicesMunicipal Bonds2.150%2.203%07/01/201912/01/2026 40,000.00 40,849.60 40,150.64 698.96 150.64N/A Cetera Investment ServicesMunicipal Bonds2.350%2.191%07/01/201912/01/2026 500,000.00 519,055.00 505,385.00 13,670.00 5,385.00N/A Cetera Investment ServicesMunicipal Bonds2.375%1.816%09/04/201912/01/2026 90,000.00 91,990.80 93,395.70 (1,404.90) 3,395.70N/A Cetera Investment ServicesMunicipal Bonds3.000%1.991%08/19/201902/01/2027 50,000.00 53,734.50 53,551.00 183.50 3,551.00N/A Cetera Investment ServicesMunicipal Bonds3.150%2.034%08/19/201903/15/2027 100,000.00 104,484.00 109,138.50 (4,654.50) 9,138.50N/A Cetera Investment ServicesMunicipal Bonds3.332%3.120%04/18/201904/15/2027 500,000.00 539,875.00 507,783.94 32,091.06 7,783.94N/A Cetera Investment ServicesMunicipal Bonds3.553%2.289%08/19/201905/01/2027 55,000.00 58,974.30 60,468.04 (1,493.74) 5,468.0405/01/2026 Cetera Investment ServicesMunicipal Bonds3.865%2.470%08/19/201905/01/2027 55,000.00 61,438.85 60,986.48 452.37 5,986.4805/01/2025 Cetera Investment ServicesMunicipal Bonds2.817%2.817%09/25/201910/01/2027 35,000.00 27,884.50 27,969.55 (85.05) (7,030.45) 05/01/2025 Cetera Investment ServicesMunicipal Bonds3.230%1.828%08/19/201905/15/2027 145,000.00 159,660.95 160,827.31 (1,166.36) 15,827.31N/A Cetera Investment ServicesMunicipal Bonds3.270%2.141%08/19/201903/15/2028 155,000.00 164,433.30 60,468.04 103,965.26 (94,531.96) 09/15/2027 Cetera Investment ServicesMunicipal Bonds2.974%2.574%11/07/201904/01/2028 75,000.00 78,933.00 77,253.00 1,680.00 2,253.00N/A Cetera Investment ServicesMunicipal Bonds3.140%2.004%08/19/201908/01/2028 500,000.00 536,850.00 547,105.00 (10,255.00) 47,105.0008/01/2027 Cetera Investment ServicesMunicipal Bonds3.000%1.942%08/19/201906/01/2029 115,000.00 125,341.95 125,961.80 (619.85) 10,961.80N/A Broker Total74.4% 8,919,000.00 9,405,275.61 9,278,998.18 41,590.22 359,998.18 TOTAL INVESTMENTS100.0%$ 12,048,000.00$ 12,641,651.23$ 12,407,998.18$ 73,479.58$ 359,998.18 PORTFOLIO BY PRODUCT TYPEMATURITY SCHEDULE 4/30/2020% of3/31/2020% ofMonthlyMaturityCurrent Value% Product TypeTotal ValueTotalTotal ValueTotalChangeLess than 1 year$1,564,726.1712.4% Money Market$160,173.471.3%$134,338.371.1%$25,835.101 - 2 years2,343,223.8618.5% CD's3,160,889.3625.0%3,143,391.3024.9%17,498.062 - 3 years857,946.506.8% Government Bonds0.000.0%0.000.0%0.003 - 4 years 1,562,225.4012.4% Municipal Bonds9,320,588.4073.7%9,361,716.9874.1%(41,128.58)4 - 5 years1,352,152.1010.7% TOTAL$12,641,651.23100.0%$12,639,446.65100.0%$2,204.585+ years4,961,377.2039.2% TOTAL$12,641,651.23100.0% υЍͲВЏЊͲЌАА aƚƓĻǤ ağƩƉĻƷ υЎͲЉЉЉͲЉЉЉ͵ЉЉ /5γƭ Њ͵Ќі ЋЎ͵Љі υЍͲЎЉЉͲЉЉЉ͵ЉЉ υЍͲЉЉЉͲЉЉЉ͵ЉЉ υЌͲЎЉЉͲЉЉЉ͵ЉЉ υЌͲЉЉЉͲЉЉЉ͵ЉЉ υЋͲЎЉЉͲЉЉЉ͵ЉЉ υЋͲЌЍЌͲЋЋЍ υЋͲЉЉЉͲЉЉЉ͵ЉЉ υЊͲЎЏЍͲАЋЏ υЊͲЎЏЋͲЋЋЎ υЊͲЌЎЋͲЊЎЋ υЊͲЎЉЉͲЉЉЉ͵ЉЉ υБЎАͲВЍА υЊͲЉЉЉͲЉЉЉ͵ЉЉ υЎЉЉͲЉЉЉ͵ЉЉ υЉ͵ЉЉ \[Ļƭƭ ƷŷğƓ ЊЊ Ώ Ћ ǤĻğƩƭЋ Ώ Ќ ǤĻğƩƭЌ Ώ Ѝ ǤĻğƩƭЍ Ώ Ў ǤĻğƩƭЎњ ǤĻğƩƭ DƚǝĻƩƓƒĻƓƷ .ƚƓķƭ aǒƓźĭźƦğƌ .ƚƓķƭ ǤĻğƩ Љ͵Љі АЌ͵Аі ELECTRIC DIVISION Operating Revenue April 2020 CLASSAMOUNTKWH$/KWH Street Lights$0.5410$0.05400 Electric Residential Service$374,461.353,643,970$0.10276 All Electric Residential Service$18,638.51188,418$0.09892 Electric Small General Service$118,366.431,192,649$0.09925 Electric Large General Service$518,343.955,771,950$0.08980 Electric Large Industrial Service$708,594.409,574,000$0.07401 Total$1,738,405.18 20,370,997$0.08534 Power Adjustment$0.00000 Rate Without Power Adjustment$0.08534 Electric Division Year-to-Date 2020 $ Amount2019 $ Amount2020 KWH/102019 KWH/10 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 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 APRIL 2020 CLASSAMOUNTMCF$/MCF Residential$292,979.0932,511$9.01169 Commercial$191,132.6422,573$8.46731 Large Industrial$41,085.334,708$8.72671 Large Industrial Contracts$248,300.6170,049$3.54467 Total$773,497.67129,841$5.95727 Fuel Adjustment-$1.06000 Rate Without Fuel Adjustment$7.01727 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 5 of Exempt Handbook ii. Section 5 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 5 EMPLOYEE BENEFITS V ACATION Exempt employees shall accrue paid vacation on the employment anniversary date according to the following schedule: bǒƒĬĻƩ ƚŅ ĻğƩƭ 9ƒƦƌƚǤĻķ ğĭğƷźƚƓ ч ЋЉ ŷƚǒƩƭ Њ ЍЉ ŷƚǒƩƭ ЋΏЏ БЉ ŷƚǒƩƭ АΏЊЉ ЊЋЉ ŷƚǒƩƭ ЊЊ ЊЋБ ŷƚǒƩƭ ЊЋ ЊЌЏ ŷƚǒƩƭ ЊЌ ЊЍЍ ŷƚǒƩƭ ЊЍ ЊЎЋ ŷƚǒƩƭ ЊЎ ЊЏЉ ŷƚǒƩƭ ЊЏ ЊЏБ ŷƚǒƩƭ ЊА ЊАЏ ŷƚǒƩƭ ЊБ ЊБЍ ŷƚǒƩƭ ЊВ ЊВЋ ŷƚǒƩƭ ЋЉ ğƓķ ǒƦ ЋЉЉ ŷƚǒƩƭ Vacation may be used after completion of the probationary period. Employees must receive prior approval of their vacation requests from their Director, Manager or Supervisor. A vacation request for more than one day must be submitted in person at least two workdays in advance. (For example, if an employee is scheduled to work Wednesday, Thursday, Monday and the employee wants to take Monday afternoon as vacation, the employee must submit a request in person by Wednesday afternoon.) An employee may carry over up to a maximum of one time their annual accrual of vacation into the next vacation year. Vacation year is defined as service anniversary to service anniversary. Each non-probationary full-time employee must use at least 40 hours of vacation leave each year. New employees who only receive 40 hours of vacation per year must use at least 20 hours of vacation leave each year. Employees who are on vacation and experience a disabling accident or illness may use sick leave instead of vacation upon providing their Director, Manager or Supervisor appropriate proof of the accident or illness. H OLIDAYS Employees are eligible for holiday pay effective immediately upon hire. HUC shall observe the following days as holidays: Martin Luther King Day Memorial Day Fourth of July Labor Day Thanksgiving Day Christmas Day If the holiday falls on a Sunday, the following Monday shall be the holiday. If the holiday falls on a Saturday, the preceding Friday shall be the holiday. If Christmas falls on a Tuesday, Wednesday, Thursday or Friday, then the preceding day shall be a Christmas Eve Day holiday. Additionally, there shall be two (2) floating holidays determined by mutual agreement between the employee and Director, Manager or Supervisor. If Christmas falls on a Saturday, Sunday, or Monday, there shall be no Christmas Eve Day holiday but there shall be three (3) floating holidays determined by mutual agreement between the employee and Director, Manager or Supervisor. Floating holidays must be used by the end of each calendar year. Employees shall be paid eight (8) hours straight time for each of the holidays. Temporary employees who work on a holiday shall be paid and shall not receive holiday pay for hours not worked. L IFE I NSURANCE HUC provides group term life insurance with accidental death and dismemberment for all full- time employees. HUC also offers voluntary term life insurance for all full-time employees. Information on life insurance is available through human resources/payroll. H EALTH/D ENTAL I NSURANCE HUC provides an opportunity for employees to participate in a group health (HSA)/dental insurance program. Employees are eligible for coverage the first of the month following hire date. Contact human resources/payroll for information regarding benefits and participation levels. Contact the human resources/payroll for information about continuation of health/dental insurance coverage after leaving. For those employees who participate in the high deductible family plan, HUC will contribute $4,000 annually into the HSA and for those employees participating in the high deductible single plan, HUC will contribute $2,000 annually into the HSA. Contributions are made in bi-weekly installments. Based on Internal Revenue Service rules, an employee must be an eligible individual to qualify for an HSA including generally having no other health coverage that is not a high deductible health plan. Veterans of the United States armed forces who receive medical benefits from the Veterans Administration (VA) or employees who are enrolled in TRICARE, which is health insurance available to active duty and retired service and reserve members and their dependents, are therefore not eligible to qualify for an HSA, but are eligible to participate in the high deductible health plan. A veteran who receives medical benefits from the Veterans Administration (VA) or employees who are enrolled in TRICARE who participate in the high deductible family plan, but who is/are not eligible to qualify for an HSA, shall receive $4,000 annually in two equal installments in lieu of said monies being deposited in an HSA. A veteran who receives medical benefits from the Veterans Administration (VA) or employees who are enrolled in TRICARE who participates in the high deductible single plan, but who is/are not eligible to qualify for an HSA, shall receive $2,000 annually in two equal installments in lieu of said monies being deposited in an HSA. D ISABILITY I NSURANCE HUC pays the entire premium of a long-term disability insurance policy for all employees. Information on disability insurance is available through human resources/payroll. F AMILY AND M EDICAL L EAVE (FMLA) Pursuant to the Family and Medical Leave Act, employees are allowed up to 12 weeks unpaid leave during a 12-month period for the following reasons: Birth or care of the newborn child of the employee Placement with the employee of a child for adoption or foster care Serious health condition of the employee that makes the employee unable to perform the functions of the position of such employee serious health condition Any qualifying exigency arising out of the fact that the spouse, or a son, daughter or parent of the employee is on active duty, or has been notified of an impending call or order to active duty) in the Armed Forces in support of a contingency operation. Up to twenty-six (26) weeks of protected leave per twelve (12) month period shall be granted to all eligible employees for the following reasons: An eligible employee who is the spouse, son, daughter, parent, or next of kin of a covered service member shall be entitled to a total of 26 workweeks of leave during a twelve (12) month period to care for the service member. The leave described in this paragraph shall only be available during a single twelve (12) month period. A covered service member is defined as a member of the Armed Forces, including a member of the National Guard or Reserves, who is undergoing medical treatment, recuperation, or therapy, is otherwise in outpatient status, or is otherwise on the temporary the case of a member of the Armed Forces, including a member of the National Guard or Reserves, means an injury or illness incurred by the member in the line of duty on active duty in the Armed Forces that may render the member medically unfit to perform the duties Spouses employed by HUC, both in regular positions, are jointly entitled to a combined total of 12 work weeks of family leave for the birth and care of a newborn child, for placement of a child for adoption or foster care, and to care for a parent who has a serious health condition. Spouses are entitled to a combined total of 26 weeks during a single twelve (12) month period to care for an eligible service member. During the single twelve (12) month period, an eligible employee shall be entitled to a combined total of 26 work weeks of total leave allowed under the FMLA. To be eligible for FMLA, the employee must have worked at least one year for HUC and worked at least 1,040 hours during the previous 12 months. In order to receive FMLA, the employee must request the leave by providing human resources/payroll 30-- is not possible, the employee must provide as much notice as possible. Human resources/payroll physician and returned to human resources/payroll. Pursuant to the FMLA, HUC may request a third opinion shall prevail. HUC may require that a request for leave related to active duty or call to active duty be supported by a certification issued by the health care provider of the service member being cared for by the employee. The 12 weeks of available FMLA extend over 12 months. To determine whether the employee has any FMLA remaining, human resources/payroll shall review the 12 months preceding the request for FMLA. An employee may use the 12 weeks of FMLA intermittently over the 12-month period if necessary and may take the leave in increments of one hour or more. to work. The fitness for duty report must be based on the particular health condition(s) for which the leave was approved and must address whether the employee can perform the essential functions of his/her regular position. child or parent shall be required to use vacation or sick leave concurrent with the FMLA. HUC shall continue to pay its contribution toward health and dental insurance while an employee is on FMLA. The employee shall be required to continue payment of the employee portion of the premiums during the leave. If the employee fails to pay their portion of the premiums, HUC may terminate their insurance coverage subject to COBRA requirements. At the end of FMLA, an employee shall be returned to his/her former position or an equivalent position. For more information on FMLA, see human resources/payroll. P REGNANCY AND P ARENTING L EAVE Pursuant to the Minnesota Pregnancy and Parenting Act, employees who have worked for HUC for at least twelve (12) months and average at least twenty (20) hours per week are entitled to take an unpaid leave of absence. Female employees are eligible for prenatal care, or incapacity due to pregnancy, childbirth, or related health conditions as well as a biological or adoptive parent in conjunction with the birth or adoption of a child are eligible for up to twelve (12) weeks of unpaid leave and must begin within twelve (12) months of the birth or adoption of the child. In the case where the child must remain in the hospital longer than the mother, the leave must begin within twelve (12) months after the child leaves the hospital. Eligible employees must provide thirty (30) days written notice to human resources/payroll of their desire to take parental leave. Employees are required to use their paid leave banks, such as sick leave or vacation. If the employee is also eligible for FMLA, the pregnancy and parenting leave under this section and FMLA shall run concurrently. The employee is entitled to return to work in the same position and at the same rate of pay the employee was receiving prior to commencement of the leave. Group insurance coverage will remain available while the employee is on leave pursuant to the Pregnancy and Parenting Leave Act, but the employee will be responsible for the entire premium unless otherwise provided in this policy (i.e., where leave is also FMLA qualifying). For employees on an FMLA absence as well, the employer contributions toward insurance benefits will continue during the FMLA leave absence. REASONABLE UNPAID WORK TIME FOR NURSING MOTHERS Nursing mothers will be provided reasonable unpaid break time to express milk for nursing her om view and free from intrusion from coworkers and the public and includes access to an electrical outlet, where the nursing mother can express milk in private. REASONABLE ACCOMMODATIONS TO AN EMPLOYEE FOR HEALTH CONDITIONS RELATING TO PREGNANCY HUC will attempt to provide a female employee who requests reasonable accommodation with the following for her health conditions related to her pregnancy or childbirth. aƚƩĻ ŅƩĻƨǒĻƓƷ ƩĻƭƷƩƚƚƒͲ Ņƚƚķ ğƓķ ǞğƷĻƩ ĬƩĻğƉƭͳ {ĻğƷźƓŭͳ \[źƒźƷƭ ƚƓ ƌźŅƷźƓŭ ƚǝĻƩ ЋЉ ƦƚǒƓķƭ ğƓķΉƚƩ ĻƒƦƚƩğƩǤ ƷƩğƓƭŅĻƩ Ʒƚ ğ ƌĻƭƭ ƭƷƩĻƓǒƚǒƭ ƚƩ ŷğǩğƩķƚǒƭ ƦƚƭźƷźƚƓͲ ƭŷƚǒƌķ ƚƓĻ ĬĻ ğǝğźƌğĬƌĻ͵ Unless such accommodations impose an undue hardship, HUC will engage in an interactive S ICK L EAVE 1. Sick leave shall be granted to all probationary and non-probationary employees at a rate of eight (8) hours per month. 2. Sick leave may be granted for absence from duty due to personal illness, or for the illness of an immediate family (See Definitions) member on the same terms the employee is able to use sick leave benefits for their own illness, including appointments for necessary medical, dental or eye care, legal quarantine, or brief emergency situation (not to exceed one day) in the immediate family (See Definitions). 3. Sick leave cannot be accumulated beyond 720 hours. After the accumulation of 720 hours, a payback of one-third of the amount over 720 hours shall be made annually on or about February 1. 4. Upon retirement or death before retirement, a payback of one-third of the amount over 240 hours shall be made. If the employee resigns or is dismissed, the above payment shall not be made. In case of death during employment, the unused sick leave shall be paid to his/her estate on the same percentage as above. 5. Requests for sick leave consideration in case of other emergency situations may be brought to the Director, Manager or Supervisor. 6. A maximum of five days funeral leave may be allowed when necessary in the case of death in the immediate family (See Definitions). 7. If an employee becomes ill and must stay home from work, he/she shall notify their Director, Manager or Supervisor before their work day begins. 8. If an employee becomes ill during his/her regular work day, they shall notify their Director, Manager or Supervisor that it is necessary to leave due to illness. 9. Employees may be required to submit a medical certificate for any sick leave, at the discretion of the Director, Manager or Supervisor. 10. The use or claim of sick leave for a purpose not authorized may be cause for disciplinary action. 11. For the purpose of accumulating additional vacation or sick leave, an employee using earned vacation or sick leave is considered to be in a paid or working status. 12. benefits. 13. An employee who is determined to be eligible for workers compensation benefits during Employee Handbook. 14. HUC shall comply with the Family and Medical Leave Act, the Minnesota Parental Leave Act and the Americans with Disabilities Act. 15. Safety leave. Employees are authorized to use sick leave for reasonable absences for themselves or immediate family (See Definitions) who are providing or receiving assistance because they, or a relative, is a victim of sexual assault, domestic abuse, or stalking. Safety leave for those listed in any calendar year. After accrued sick leave has been exhausted, vacation leave may be used upon approval of the General Manager, to the extent the employee is entitled to such leave. S ICK/V ACATION L EAVE D ONATION The HUC recognizes that a catastrophic illness and/or serious health condition of an employee or immediate family member (spouse or dependent child) may deplete an empl leave (sick/vacation/compensatory time). This policy is meant to provide employees with the option of assisting fellow employees at such a time. HUC employees having accrued sick or vacation leave shall be allowed to donate a portion of such accrued leave to fellow employees experiencing a catastrophic illness and/or serious health child(ren). A catastrophic illness and/or serious health condition includes but is not limited to, heart attack, stroke, organ transplant, or other life threatening illness or debilitating condition as The donation of leave from one employee to another shall be subject to the following terms and conditions. 1. An employee is only eligible to receive donated leave for time lost from normal work hours due to a life threatening disease or condition as defined above. 2. An employee shall be eligible to receive donated leave only after the employe sick, vacation, and compensatory time have been exhausted. 3. All requests to receive donated leave must be in writing to human resources/payroll and must be accompanied by supporting medical data. No full time employee shall be allowed to receive more than a total of twenty (20) work days or 160 hours of donated leave per single major life threatening disease or condition unless requested and approved by the General Manager. There is no limit on catastrophic events per year. 4. An employee may only use donated leave up to the time of eligibility for a long-term disability benefit (if applicable), or for the maximum number of days allowed to be donated, whichever occurs first. 5. A full time employee may donate no more than sixteen (16) hours of leave per calendar year to a single fellow employee. This shall not be construed to prohibit donating sixteen (16) hours per year to additional employees. Leave donation shall be calculated using time and not an equivalent cash amount. 6. An employee who is donating and/or vacation leave balance. A written request to donate leave must be made to human resources/payroll on forms designated by HUC for that purpose. All donations made shall be kept confidential. 7. The General Manager shall have the right to deny use of donated leave or limit its use if it is determined to be in the best interests of HUC. requested employee as part of the payroll function. Donated time shall be processed and used by the date of submission until the eligible amount of donated leave is reached. Contributions of leave hours exceeding the eligible amount shall be returned to the donating employee, and shall not be transferred. Donated hours shall be used in the order they are received. T RAINING AND E DUCATION A SSISTANCE HUC encourages its employees to seek individual and career development through job-related training and education. HUC provides financial assistance for successful completion of qualifying programs and courses. Tuition, registration fees and other course-related fees would be reimbursed after successful completion of a course. To apply for education assistance, employees must submit a request to their Director, Manager, or Supervisor no later than five working days prior to registration. The Director, Manager or Supervisor and the General Manager must approve the course, seminar, or program. Only courses that are job-related and provide potential for career advancement with HUC are eligible for reimbursement. The following criteria must be met: The maximum amount of reimbursement will be $6,000 per calendar year. If coursework or tuition exceeds this amount, then the Director or General Manager will approach the Commission to request a waiver. To request a waiver, the coursework must be directly related to seeking is beneficial to the company; in other words, it would be difficult to hire someone who already has that degree. Employee must study on their own time. Use of HUC computers is allowed in accordance with the IT policy. An employee must remain employed at HUC for twenty-four (24) calendar months after completion of a course, or must repay HUC all reimbursements received for the course. W ORKPLACE A CCOMMODATION HUC shall make workplace accommodations in accordance with state and federal law. An employee who believes he or she qualifies for a reasonable accommodation under the Americans with Disabilities Act (ADA) shall submit a request for accommodations to the General Manager. HUC shall engage in an interactive process with employees who request accommodation in order to identify the specific physical and mental abilities and limitations as they relate to essential job functions; barriers to the performance of essential job functions; and how these barriers could be overcome with reasonable accommodation. The employee may be requested to provide written docum request for accommodation. If an employee refuses to provide such written documentation and/or sign an authorization allowing HUC to contact the healthcare provider, HUC will evaluate the evaluating potential accommodations, determine which, if any, potential accommodations present an undue hardship to HUC or the department in which the employee works. U NPAID E XTENDED L EAVE OF A BSENCE pay. The unpaid leave of absence shall be a minimum length of one month and a maximum length of six months. Employees on an extended leave of absence for one month or longer which is not governed by the FMLA, are required to pay the full cost of any health, long-term disability or life insurance premium during the leave of the absence. Employees on unpaid leave of absence shall not earn vacation and sick leave. No employee shall be granted a leave of absence in order to accept a different position with another employer. Acceptance of a full-time position with another employer shall be deemed a resignation F AMILY D EATH immediate family. Time allowed with pay for exempt employees may not exceed five (5) days per If an employee is called to participate in the funeral services for the death of a person who is not a absence. E MERGENCY L EAVE The General Manager may approve time off without pay to an employee who has no vacation or M ILITARY L EAVE HUC shall comply with Minnesota statutes relating to military leave. J URY, W ITNESS OR B OARD D UTY A regular full-time and part-time employee called to jury duty will be granted paid leaves of absence. Employees are required to notify their supervisor as soon as possible after receiving notice to report for jury duty. Such employees will be required to turn over any compensation they receive for jury duty, minus mileage reimbursement, to HUC in order to receive their regular wages for the period. Time spent on jury duty will not be counted as time worked in computing overtime. Employees excused or released from jury duty during their regular working hours will report to their regular work duties as soon as reasonably possible or will take accrued vacation or compensatory time to make up the difference. Employees will be paid their regular wage to testify in court for HUC-related business or to serve on a work-related board or committee which pays a per diem. Any compensation received for court appearances (e.g. subpoena fees) or as meeting per diems arising out of or in connection with HUC employment, minus mileage reimbursement, must be turned over to HUC. V OLUNTEER F IRE OR R ESCUE S QUAD D UTY In the event of an HUC emergency, the General Manager reserves the right to retain essential employees from Hutchinson volunteer fire or rescue squad duties or require employees to return to their HUC duties and assist the operation of HUC. HUC employees who are called out as members of the Hutchinson volunteer fire or rescue squad while on duty with HUC will be paid up to four hours regular pay while on the emergency call. S CHOOL C ONFERENCE L EAVE Any employee who has worked half-time or more may take unpaid leave for up to a total of sixteen (16) hours during any 12-month period to attend school conferences or classroom school), provided the conference or school related activities cannot be scheduled during non- work hours. When the leave cannot be scheduled during non-work hours and the need for the leave is foreseeable, the employee must provide reasonable prior notice of the leave and make a reasonable effort to schedule the leave so as not to disrupt unduly the operations of HUC. Employees may choose to use vacation leave hours or compensatory time for this absence, but are not required to do so. B ONE M ARROW/O RGAN D ONATION L EAVE Employees working an average of 20 or more hours per week must be granted paid leave, not to exceed 40 hours unless agreed to by HUC, to undergo medical procedures to donate bone marrow and length of the leave requested. If there is a medical determination that the employee does not qualify as a bone marrow or organ donor, the paid leave of absence granted to the employee prior to that medical determination is not forfeited. R ETIREMENT P ROGRAM HUC is a member of the State Public Employees Retirement Associati participates in the federal FICA (Social Security) program. Full-time employees must become members of PERA effective the date of employment. Both HUC and the employee contribute to PERA. Information on PERA is available from Human Resources. D EFERRED C OMPENSATION After completion of probationary period, HUC offers a 457 deferred compensation plan, which allows employees to place a portion of their earnings through payroll deduction into a tax deferred investment program. Taxes on money set aside are deferred until the time the money is withdrawn. HUC does not contribute to this 457 deferred compensation plan. For enrollment information, contact payroll. P ERSONAL U SE OF U TILITY F ACILITIES AND E QUIPMENT No employee may use HUC facilities or equipment for personal use. R ECOGNITION P OLICY - S ERVICE A WARDS AND R ETIREMENT G IFTS Objective Service awards and retirement gifts are provided to recognize and reward employees for service with the company. Awards are granted without regard to position or salary. Scope of Policy Full-time, active employees are eligible for a service award for every five (5) years of service completed. The service awards may increase in value based on longevity, per the table listed in Service Award Procedures below. Service Credit Service credit for service awards will count from the first day an individual is considered a full- time employee of HUC and continue while the employee remains on full-time, active status. If an individual has a break in service, their service credit may resume accumulating when they return to full-time status, depending on the nature of the break. Service Award Procedures HUC will inform the individual employee of their eligibility for a service award. Eligible employees may select a gift card in the amount noted on the table below. Employee will receive a Certificate of Appreciation signed by the General Manager and presented to them at the Recognition Banquet. Gift cards must be for personal, tangible property and may not be redeemed for cash. Amount Years of Service $50 5 Years $100 10 Years $125 15 Years $150 20 Years $175 25 Years $200 30 Years $250 35 Years $300 40 Years Retirement Recognition Procedures Retirees have the option of a potluck luncheon in their honor. A gift from HUC valued at no greater than $300 will be given to the retiree. The immediate supervisor will be responsible for coordinating the purchase of the gift. NON-EXEMPT SECTION 5 EMPLOYEE BENEFITS V ACATION See Union Contract. H OLIDAYS Employees are eligible for holiday pay effective immediately upon hire. HUC shall observe the following days as holidays: Martin Luther King Day Memorial Day Fourth of July Labor Day Thanksgiving Day Christmas Day If the holiday falls on a Sunday, the following Monday shall be the holiday. If the holiday falls on a Saturday, the preceding Friday shall be the holiday. If Christmas falls on a Tuesday, Wednesday, Thursday or Friday, then the preceding day shall be a Christmas Eve Day holiday. Additionally, there shall be two (2) floating holidays determined by mutual agreement between the employee and Director or Manager. If Christmas falls on a Saturday, Sunday, or Monday, there shall be no Christmas Eve Day holiday but there shall be three (3) floating holidays determined by mutual agreement between the employee and Director or Manager. Floating holidays must be used by the end of each calendar year. Employees shall be paid eight (8) hours straight time for each of the holidays. However, those employees governed by the Memorandum of Agreement, must comply with section 13.2 of that Agreement. and shall not receive holiday pay for hours not worked. L IFE I NSURANCE HUC provides group term life insurance with accidental death and dismemberment for all full- time employees. HUC also offers voluntary term life insurance for all full-time employees. Information on life insurance is available through human resources/payroll. H EALTH/D ENTAL I NSURANCE HUC provides an opportunity for employees to participate in a group (HSA)/dental insurance program. Employees are eligible for coverage the first of the month following hire date. Contact human resources/payroll for information regarding benefits and participation levels. Contact human resources/payroll for information about continuation of health/dental insurance coverage after leaving. See Union Contract. D ISABILITY I NSURANCE HUC pays the entire premium of a long-term disability insurance policy for all employees. Information on disability insurance is available through human resources/payroll. F AMILY AND M EDICAL L EAVE (FMLA) Pursuant to the Family and Medical Leave Act, employees are allowed up to 12 weeks unpaid leave during a 12-month period for the following reasons: Birth or care of the newborn child of the employee Placement with the employee of a child for adoption or foster care Serious health condition of the employee that makes the employee unable to perform the functions of the position of such employee use, or parent suffering from a serious health condition Any qualifying exigency arising out of the fact that the spouse, or a son, daughter or parent of the employee is on active duty, or has been notified of an impending call or order to active duty) in the Armed Forces in support of a contingency operation. Up to twenty-six (26) weeks of protected leave per twelve (12) month period shall be granted to all eligible employees for the following reasons: An eligible employee who is the spouse, son, daughter, parent, or next of kin of a covered service member shall be entitled to a total of 26 workweeks of leave during a twelve (12) month period to care for the service member. The leave described in this paragraph shall only be available during a single twelve (12) month period. A covered service member is defined as a member of the Armed Forces, including a member of the National Guard or Reserves, who is undergoing medical treatment, recuperation, or therapy, is otherwise in outpatient status, or is otherwise on the temporary the case of a member of the Armed Forces, including a member of the National Guard or Reserves, means an injury or illness incurred by the member in the line of duty on active duty in the Armed Forces that may render the member medically unfit to perform the duties Spouses employed by HUC, both in regular positions, are jointly entitled to a combined total of 12 work weeks of family leave for the birth and care of a newborn child, for placement of a child for adoption or foster care, and to care for a parent who has a serious health condition. Spouses are entitled to a combined total of 26 weeks during a single twelve (12) month period to care for an eligible service member. During the single twelve (12) month period, an eligible employee shall be entitled to a combined total of 26 work weeks of total leave allowed under the FMLA. To be eligible for FMLA, the employee must have worked at least one year for HUC and worked at least 1,040 hours during the previous 12 months. In order to receive FMLA, the employee must request the leave by providing human resources/payroll 30-ior to the requested starting date of the leave. If 30- is not possible, the employee must provide as much notice as possible. Human resources/payroll physician and returned to human resources/payroll. Pursuant to the FMLA, HUC may request a third opinion shall prevail. HUC may require that a request for leave related to active duty or call to active duty be supported by a certification issued by the health care provider of the service member being cared for by the employee. The 12 weeks of available FMLA extend over 12 months. To determine whether the employee has any FMLA remaining, human resources/payroll shall review the 12 months preceding the request for FMLA. An employee may use the 12 weeks of FMLA intermittently over the 12-month period if necessary and may take the leave in increments of one hour or more. to work. The fitness for duty report must be based on the particular health condition(s) for which the leave was approved and must address whether the employee can perform the essential functions of his/her regular position. endent child or parent shall be required to use vacation or sick leave concurrent with the FMLA. HUC shall continue to pay its contribution toward health and dental insurance while an employee is on FMLA. The employee shall be required to continue payment of the employee portion of the premiums during the leave. If the employee fails to pay their portion of the premiums, HUC may terminate their insurance coverage subject to COBRA requirements. At the end of FMLA, an employee shall be returned to his/her former position or an equivalent position. For more information on FMLA, see human resources/payroll. P REGNANCY AND P ARENTING L EAVE Pursuant to the Minnesota Pregnancy and Parenting Act, employees who have worked for HUC for at least twelve (12) months and average at least twenty (20) hours per week are entitled to take an unpaid leave of absence. Female employees are eligible for prenatal care, or incapacity due to pregnancy, childbirth, or related health conditions as well as a biological or adoptive parent in conjunction with the birth or adoption of a child are eligible for up to twelve (12) weeks of unpaid leave and must begin within twelve (12) months of the birth or adoption of the child. In the case where the child must remain in the hospital longer than the mother, the leave must begin within twelve (12) months after the child leaves the hospital. Eligible employees must provide thirty (30) days written notice to human resources/payroll of their desire to take parental leave. Employees are required to use their paid leave banks, such as sick leave or vacation. If the employee is also eligible for FMLA, the pregnancy and parenting leave under this section and FMLA shall run concurrently. The employee is entitled to return to work in the same position and at the same rate of pay the employee was receiving prior to commencement of the leave. Group insurance coverage will remain available while the employee is on leave pursuant to the Pregnancy and Parenting Leave Act, but the employee will be responsible for the entire premium unless otherwise provided in this policy (i.e., where leave is also FMLA qualifying). For employees on an FMLA absence as well, the employer contributions toward insurance benefits will continue during the FMLA leave absence. REASONABLE UNPAID WORK TIME FOR NURSING MOTHERS Nursing mothers will be provided reasonable unpaid break time to express milk for nursing her l provide a room (other than a bathroom) as from coworkers and the public and includes access to an electrical outlet, where the nursing mother can express milk in private. REASONABLE ACCOMMODATIONS TO AN EMPLOYEE FOR HEALTH CONDITIONS RELATING TO PREGNANCY HUC will attempt to provide a female employee who requests reasonable accommodation with the following for her health conditions related to her pregnancy or childbirth. More frequent restroom, food and water breaks; Seating; Limits on lifting over 20 pounds and/or Temporary transfer to a less strenuous or hazardous position, should one be available. Unless such accommodations impose an undue hardship, HUC will engage in an interactive S ICK L EAVE 1. Sick leave shall be granted to all probationary and non-probationary employees at a rate of eight (8) hours per month. 2. Sick leave may be granted for absence from duty due to personal illness, or for the illness of an immediate family (See Definitions) member on the same terms the employee is able to use sick leave benefits for their own illness, including appointments for necessary medical, dental or eye care, legal quarantine, or brief emergency situation (not to exceed one day) in the immediate family (See Definitions). 3. Sick leave cannot be accumulated beyond 720 hours. After the accumulation of 720 hours, a payback of one-third of the amount over 720 hours shall be made annually on or about February 1. 4. Upon retirement or death before retirement, a payback of one-third of the amount over 240 hours shall be made. If the employee resigns or is dismissed, the above payment shall not be made. In case of death during employment, the unused sick leave shall be paid to his/her estate on the same percentage as above. 5. Requests for sick leave consideration in case of other emergency situations may be brought to the Director, Manager or Supervisor. 6. A maximum of five days funeral leave may be allowed when necessary in the case of death in the immediate family (See Definitions). 7. If an employee becomes ill and must stay home from work, he/she shall notify their Director, Manager or Supervisor before their work day begins. 8. If an employee becomes ill during his/her regular work day, they shall notify their Director, Manager or Supervisor that it is necessary to leave due to illness. 9. Employees may be required to submit a medical certificate for any sick leave, at the discretion of the Director, Manager or Supervisor. 10. The use or claim of sick leave for a purpose not authorized may be cause for disciplinary action. 11. For the purpose of accumulating additional vacation or sick leave, an employee using earned vacation or sick leave is considered to be in a paid or working status. 12. ent of others or while self benefits. 13. An employee who is determined to be eligible for workers compensation benefits during absence from duty shall receive such benefit Employee Handbook. 14. HUC shall comply with the Family and Medical Leave Act, the Minnesota Parental Leave Act and the Americans with Disabilities Act. 15. Safety leave. Employees are authorized to use sick leave for reasonable absences for themselves or immediate family (See Definitions) who are providing or receiving assistance because they, or a relative, is a victim of sexual assault, domestic abuse, or stalking. Safety leave for those listed in any calendar year. After accrued sick leave has been exhausted, vacation leave may be used upon approval of the General Manager, to the extent the employee is entitled to such leave. S ICK/V ACATION L EAVE D ONATION The HUC recognizes that a catastrophic illness and/or serious health condition of an employee or immediate family member (spouse or dependent child) may deplete an emplo leave (sick/vacation/compensatory time). This policy is meant to provide employees with the option of assisting fellow employees at such a time. HUC employees having accrued sick or vacation leave shall be allowed to donate a portion of such accrued leave to fellow employees experiencing a catastrophic illness and/or serious health child(ren). A catastrophic illness and/or serious health condition includes but is not limited to, heart attack, stroke, organ transplant, or other life threatening illness or debilitating condition as The donation of leave from one employee to another shall be subject to the following terms and conditions. 1. An employee is only eligible to receive donated leave for time lost from normal work hours due to a life threatening disease or condition as defined above. 2. An employee shall be eligible to receive donated leave only after the employee sick, vacation, and compensatory time have been exhausted. 3. All requests to receive donated leave must be in writing to human resources/payroll and must be accompanied by supporting medical data. No full time employee shall be allowed to receive more than a total of twenty (20) work days or 160 hours of donated leave per single major life threatening disease or condition unless requested and approved by the General Manager. There is no limit on catastrophic events per year. 4. An employee may only use donated leave up to the time of eligibility for a long-term disability benefit (if applicable), or for the maximum number of days allowed to be donated, whichever occurs first. 5. A full time employee may donate no more than sixteen (16) hours of leave per calendar year to a single fellow employee. This shall not be construed to prohibit donating sixteen (16) hours per year to additional employees. Leave donation shall be calculated using time and not an equivalent cash amount. 6. and/or vacation leave balance. A written request to donate leave must be made to human resources/payroll on forms designated by HUC for that purpose. All donations made shall be kept confidential. 7. The General Manager shall have the right to deny use of donated leave or limit its use if it is determined to be in the best interests of HUC. Donated leave shall be subtracted fr requested employee as part of the payroll function. Donated time shall be processed and used by the date of submission until the eligible amount of donated leave is reached. Contributions of leave hours exceeding the eligible amount shall be returned to the donating employee, and shall not be transferred. Donated hours shall be used in the order they are received. T RAINING AND E DUCATION A SSISTANCE HUC encourages its employees to seek individual and career development through job-related training and education. HUC provides financial assistance for successful completion of qualifying programs and courses. Tuition, registration fees and other course-related fees would be reimbursed after successful completion of a course. To apply for education assistance, employees must submit a request to their Director, Manager, or Supervisor no later than five working days prior to registration. The Director, Manager or Supervisor and the General Manager must approve the course, seminar, or program. Only courses that are job-related and provide potential for career advancement with HUC are eligible for reimbursement. The following criteria must be met: The maximum amount of reimbursement will be $6,000 per calendar year. If coursework or tuition exceeds this amount, then the Director or General Manager will approach the Commission to request a waiver. To request a waiver, the coursework must be directly related to t seeking is beneficial to the company; in other words, it would be difficult to hire someone who already has that degree. Employee must study on their own time. Use of HUC computers is allowed in accordance with the IT policy. An employee must remain employed at HUC for twenty-four (24) calendar months after completion of a course, or must repay HUC all reimbursements received for the course. W ORKPLACE A CCOMMODATION HUC shall make workplace accommodations in accordance with state and federal law. An employee who believes he or she qualifies for a reasonable accommodation under the Americans with Disabilities Act (ADA) shall submit a request for accommodations to the General Manager. HUC shall engage in an interactive process with employees who request accommodation in order to identify the specific physical and mental abilities and limitations as they relate to essential job functions; barriers to the performance of essential job functions; and how these barriers could be overcome with reasonable accommodation. The employee may be requested to provide written docume request for accommodation. If an employee refuses to provide such written documentation and/or sign an authorization allowing HUC to contact the healthcare provider, HUC will evaluate the evaluating potential accommodations, determine which, if any, potential accommodations present an undue hardship to HUC or the department in which the employee works. U NPAID E XTENDED L EAVE OF A BSENCE pay. The unpaid leave of absence shall be a minimum length of one month and a maximum length of six months. Employees on an extended leave of absence for one month or longer which is not governed by the FMLA, are required to pay the full cost of any health, long-term disability or life insurance premium during the leave of the absence. Employees on unpaid leave of absence shall not earn vacation and sick leave. No employee shall be granted a leave of absence in order to accept a different position with another employer. Acceptance of a full-time position with another employer shall be deemed a resignation F AMILY D EATH See Union Contract. E MERGENCY L EAVE The General Manager may approve time off without pay to an employee who has no vacation or M ILITARY L EAVE HUC shall comply with Minnesota statutes relating to military leave. J URY, W ITNESS OR B OARD D UTY A regular full-time and part-time employee called to jury duty will be granted paid leaves of absence. Employees are required to notify their supervisor as soon as possible after receiving notice to report for jury duty. Such employees will be required to turn over any compensation they receive for jury duty, minus mileage reimbursement, to HUC in order to receive their regular wages for the period. Time spent on jury duty will not be counted as time worked in computing overtime. Employees excused or released from jury duty during their regular working hours will report to their regular work duties as soon as reasonably possible or will take accrued vacation or compensatory time to make up the difference. Employees will be paid their regular wage to testify in court for HUC-related business or to serve on a work-related board or committee which pays a per diem. Any compensation received for court appearances (e.g. subpoena fees) or as meeting per diems arising out of or in connection with HUC employment, minus mileage reimbursement, must be turned over to HUC. V OLUNTEER F IRE OR R ESCUE S QUAD D UTY In the event of an HUC emergency, the General Manager reserves the right to retain essential employees from Hutchinson volunteer fire or rescue squad duties or require employees to return to their HUC duties and assist the operation of HUC. HUC employees who are called out as members of the Hutchinson volunteer fire or rescue squad while on duty with HUC will be paid up to four hours regular pay while on the emergency call. S CHOOL C ONFERENCE LEAVE Any employee who has worked half-time or more may take unpaid leave for up to a total of sixteen (16) hours during any 12-month period to attend school conferences or classroom ending secondary school), provided the conference or school related activities cannot be scheduled during non- work hours. When the leave cannot be scheduled during non-work hours and the need for the leave is foreseeable, the employee must provide reasonable prior notice of the leave and make a reasonable effort to schedule the leave so as not to disrupt unduly the operations of HUC. Employees may choose to use vacation leave hours or compensatory time for this absence, but are not required to do so. B ONE M ARROW/O RGAN D ONATION L EAVE Employees working an average of 20 or more hours per week must be granted paid leave, not to exceed 40 hours unless agreed to by HUC, to undergo medical procedures to donate bone marrow or to donate an organ or partial organ. and length of the leave requested. If there is a medical determination that the employee does not qualify as a bone marrow or organ donor, the paid leave of absence granted to the employee prior to that medical determination is not forfeited. R ETIREMENT P ROGRAM also participates in the federal FICA (Social Security) program. Full-time employees must become members of PERA effective the date of employment. Both HUC and the employee contribute to PERA. Information on PERA is available from Human Resources. D EFERRED C OMPENSATION After completion of probationary period, HUC offers a 457 deferred compensation plan, which allows employees to place a portion of their earnings through payroll deduction into a tax deferred investment program. Taxes on money set aside are deferred until the time the money is withdrawn. HUC does not contribute to this 457 deferred compensation plan. For enrollment information, contact payroll. P ERSONAL U SE OF U TILITY F ACILITIES AND E QUIPMENT No employee may use HUC facilities or equipment for personal use. R EQUIRED C LOTHING HUC will provide employees required uniforms and safety clothing at no cost to the employee. This clothing may differ by Department. See Staff Personnel for a list of the clothing HUC will provide to those employees. All clothing issued to employees by HUC may only be worn while the employee is on-duty for HUC. Failure to wear flame resistant clothing at the appropriate times is a violation of HUC policy and will subject the employee to discipline. S MALL H AND T OOLS HUC shall furnish the hand tools specified by the Director or Manager as necessary to perform the of the employee to replace any missing hand tools. R ECOGNITION P OLICY S ERVICE A WARDS AND R ETIREMENT G IFTS Objective Service awards and retirement gifts are provided to recognize and reward employees for service with the company. Awards are granted without regard to position or salary. Scope of Policy Full-time, active employees are eligible for a service award for every five (5) years of service completed. The service awards may increase in value based on longevity, per the table listed in Service Award Procedures below. Service Credit Service credit for service awards will count from the first day an individual is considered a full- time employee of HUC and continue while the employee remains on full-time, active status. If an individual has a break in service, their service credit may resume accumulating when they return to full-time status, depending on the nature of the break. Service Award Procedures HUC will inform the individual employee of their eligibility for a service award. Eligible employees may select a gift card in the amount noted on the table below. Employee will receive a Certificate of Appreciation signed by the General Manager and presented to them at the Recognition Banquet. Gift cards must be for personal, tangible property and may not be redeemed for cash. Amount Years of Service $50 5 Years $100 10 Years $125 15 Years $150 20 Years $175 25 Years $200 30 Years $250 35 Years $300 40 Years Retirement Recognition Procedures Retirees have the option of a potluck luncheon in their honor. A gift from HUC valued at no greater than $300 will be given to the retiree. The immediate supervisor will be responsible for coordinating the purchase of the gift.