12-16-2020 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, December 16, 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;
Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Morrow, second by Commissioner Wendorff to approve
the Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
Mr. Martig presented the Financial Statements. Both divisions have stayed fairly
steady all year. HUC has not seen a large increase in Accounts Receivable like
other utilities have seen. There was not a Power Cost Adjustment for November
leaving the total PCA YTD at $500K. GM Carter reviewed operating expenses for
the year.
Motion by Commissioner Hanson, second by Commissioner Cheney to approve the
financial statements. Motion carried unanimously.
4. Open Forum
5. Communication
a. City Administrator — Matthew Jaunich — Absent
b. Divisions
i. Dan Lang, Engineering Services Manager — Absent
ii. Dave Hunstad, Electric Transmission/Distribution Manager — Absent
iii. Randy Blake, Production Manager — Absent
iv. John Webster, Natural Gas Division Director — Absent
v. Jared Martig, Financial Manager-
1. The front doors are closing for 30 minutes during lunch while the area is
operating at half-staff.
c. Human Resources - Brenda Ewing — Absent
d. Legal — Marc Sebora —
i. Nothing at this time
e. General Manager — Jeremy Carter
i. Downtown Main Street lights are not working properly. MN Dot has been
notified.
ii. Working on Year -End tasks
iii. Working on Preliminary Press Release for Carbon -Fee Community in 2021.
Please provide additions or changes by end of next week.
iv. Working through General Contract with Brownton on Electric & Water Meter
Reading Agreement.
v. Solar bids are in and have been reviewed. Would like to set up a Special
meeting in January for the Commission to review the information received.
vi. Pad excavating at Plant 2 has started. Waiting on soil test results.
vii. Legislative items are being sent out.
6. Policies
a. Review Policies
i. None at this time
No changes recommended at this time.
b. Approve Changes
i. None at this time
7. Unfinished Business
None
8. New Business
a. Approve Plant 2 Transfer Move
GM Carter presented Approval of Plant 2 Transfer Move. After the fire last year
at Plant 2, HUC installed a temporary transformer. HUC is now ready to prepare
the site for the new transformer that is scheduled for delivery in early 2021. The
temporary transformer was moved back into the storage area while the crane and
moving equipment were on site.
Motion by Commissioner Morrow, second by Commissioner Wendorff to Approve
Plant 2 Transfer Move. Motion carried unanimously.
b. Approve Customer Service Credit Card Vendor Change to Invoice Cloud
Mr. Martig presented Approval of Customer Service Credit Card Vendor Change
to Invoice Cloud. Mr. Martig provided background of the customer service credit
card processing company of Point & Pay which has been used since switching to
BS&A in 2017. At the time of BS&A implementation, Point & Pay was the only
option for live data into the software but since that time Invoice Cloud has added
that capability. Customer Service has received many complaints about the ease
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of Point & Pay leading HUC to the decision of switching over to Invoice Cloud.
Other complaints received are the frequent downtime that occurs along with failed
attempts from Point & Pay on customers utilizing the re -occurring credit card
payment option. Mr. Martig added that the City of Hutchinson has been using
Invoice for Cloud for 2 years. Now that HUC's contract is expiring, Staff would
like to move forward with Invoice Cloud. Invoice Cloud has a very customer
friendly interface. Invoice Cloud allows customers to use Apple Pay, Google Pay
and pay by text. Invoice Cloud has a proven track record of saving staff time by
increasing both paperless bills and automated payments. Mr. Martig stated that
the drawback to Invoice Cloud is cost. The cost would increase by an additional
$10,000 based on the current customer usage of the system. Overall, Staff
believes the increased cost is worth if for less hassle on both customers and staff.
After discussion, a motion by Commissioner Cheney, second by Commissioner
Hanson to Approve Customer Service Credit Card Vendor Change to Invoice
Cloud. Motion carried unanimously.
c. Approve Moving 2020 Pay Grid
GM Carter presented the Approval of Moving 2020 Pay Grid. GM Carter recapped
discussions that were held in previous months with the Commission. GM Carter
stated that HUC annually considers a market adjustment to the current pay grid
based on market statistics. GM Carter reviewed the statistical findings. Based on
the findings, the recommendation would be for the non -union pay grid for 2021 to
incorporate a 2% grid shift.
Motion by Commissioner Hanson, second by Commissioner Morrow to Approve
Moving 2020 Pay Grid. Motion carried unanimously.
d. Approve 2021 Budgets & CIP
GM Carter presented for approval the 2021 Budgets & CIP. At the November 25,
2020 Commission meeting a high-level overview of the 2021 budgets were
reviewed and major changes 2020 to 2021 were discussed in detail. Since that
time, some additions and reductions have been made on the expense side of the
2021 operating budgets and are reflected in the final budgets. These changes
include machinery/boiler insurance(increase of $138,152), Bright Energy Choices
Program(increase of $78,000), furniture upgrades(increase of $6,400) and
Distribution Study(decrease of $5,000). Discussions were held on the
machinery/boiler insurance increase. Staff did anticipate an increase but not by
that dollar amount. GM Carter stated that there were no changes on the 5-Year
CIP.
After discussion, a motion by Commissioner Wendorff, second by Commissioner
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Cheney to Approve 2021 Electric and Natural Gas Division Operating Budgets &
5 Year CIP. Motion carried unanimously.
Commissioner Hanson noted that the 2021 Budgets and CIP were very well
thought out and presented along with being consistent with the expectations of
the Commission. The Commissioners agreed.
e. Conduct the Performance Review of Hutchinson Utilities Commission General
Manager Pursuant to Minnesota Statute 13D.05 Subd. 3(a)
President Martinez introduced the agenda item, the General Manager's annual
performance review. President Martinez advised GM Carter that he has the option
to have the performance review conducted as either an open session or a closed
session of the Utility Commission. GM Carter indicated his decision to have the
review as part of a closed session.
President Martinez entertained a motion to go into closed session to conduct the
twelve-month (annual) performance review as permitted under Minnesota Statute
13D.05, Subdivision 3(a). Motion by Commissioner Morrow, second by
Commissioner Cheney to go into closed session to conduct the General Manager's
performance review. The motion passed unanimously. The Commission then
proceeded into a closed session at 3:47 p.m.
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Hutchinson Utilities Commission
Summary of Closed Meeting Proceedings
General Manager Performance Appraisal
Wednesday, December 16, 2020
On December 16, 2020, the Hutchinson Utilities Commission conducted a closed meeting for
the annual performance appraisal for General Manager, Jeremy Carter. Individuals present
included General Manager Jeremy Carter, Commission Members Don Martinez, Monty
Morrow, Anthony Hanson, Bob Wendorff, and Matt Cheney, City Attorney Marc Sebora, and
City of Hutchinson Human Resources Director Brenda Ewing. Mr. Carter exercised his right to
close the proceedings to the public as permitted under Minnesota Statute 13D.05, Subdivision
3(a).
Motion by Morrow, second by Cheney to go into closed session to conduct the General
Manager's performance review. The motion passed unanimously. The Commission then
proceeded into a closed session at 3:47 p.m.
The Commission reviewed Mr. Carter's performance for the current calendar year. The review
is required per the terms of the employment contract in place between the Hutchinson Utilities
Commission and General Manager Carter.
Mr. Carter's performance was evaluated in the following areas: Organizational Management,
Fiscal/Business Management, Program Development, Relationship & Communication with the
Commission, Long -Range Planning, and Relationships with Public & Outside Organizations. The
consensus of the Commission is that Mr. Carter's cumulative performance for the review period
was found to be 4.10 on the rating scale of 0 — 5, and, per the Hutchinson Utilities Commission,
is outstanding on the ratings scale.
The employment contract between Hutchinson Utilities and Mr. Carter indicates that salary
increases for the General Manager are subject to the provisions of the Compensation Plan
section of the Hutchinson Utilities Commission Exempt Employee Handbook.
Motion by Cheney, second by Hanson to close the closed session. The motion passed
unanimously. The Commission moved back into open session at 4:45 p.m.
Motion by Cheney, second by Hanson to increase General Manager Jeremy Carter's annual
salary to the salary cap of $180,927.00. Cheney amended the motion. Motion to establish the
aggregate review score of 4.10 and to increase the general manager's annual salary to
$180,927.00, the governor's salary cap figure. Hanson seconded the amended motion. The
motion carried unanimously.
Motion to adjourn by Morrow, second by Wendorff. The motion carried unanimously, and the
meeting adjourned at 4:48 p.m.
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ATTEST: �a ,
Don Martinez, President