12-21-2022 HUCMI
MINUTES
-tynm�*n
Wednesday, December 21, 2022
Call to order — 3:001 p.m.
President Matt Cheney called the mee&g to order. Members present: President Matt
Cheiney; Vice President Anthony Hanson; Secretary Don Martinez; Comm I issioner Robert
Wendorff; Commissioner �Kathy Silvernale, G!M Jleremy Carter
1. Conflict ofl-fterest
2. Approve Consent Agenda
a. Approve Minutes
bof Bills
Motion by Commissioner Martinez, second by Commissioner Hanson to Approve
the Consent Agenda, Motion carried unanimously.
Mr. Martiig presented the financial statements. Electric Division net income
decreased by $77k over November 2021. Primary reason was the decrease in
revenue both, in customer revenue as well as sales, for resale. Gas Division net
income decreased by $59K mainly due to the increased purchased gas costs.
Commissioner Martinez inquired about the longs -term CDs at Wells Fargo and if there
are other re-iinvestment rate options.
the Financial Statements. Motion carried unianimously.
5. Communication
a. City Administrator— Matthew Jaunich; —
1. Snow Emergency declared for tonight
2. Finalizing budget/tax levy next week. Looking at a 3.3% tax levy increase
3. Anticipating Police Department construction to be completed by
March/April 2023
b. Divisions
i, Dan Lang, Engineering Services Manager — Absent
ii. Dave Hunstad, Electric Transmission/Distribution Manager —
1. Nothing to report
iii. Mike Gabrielson, Production Manager —
1. Tower piping wrapped up and is back in service.
2. Voltage Regulator at Unit 1 is scheduled to be installled 2nd week
of January
I Bid Opening this Friday for Unit 1 Oil Leak Repair and Depot
Service
iv. John Webster, Natural Gas, Division Director —
1. Working on End of Year
2. Heartland Corn easements are almost all in place and will be
moving forward
v. Jared Martig, Financial Manager —
1. Received a Sales Tax Audit — Looking to complete in February
c. Human Resources — Angie Radke — Nothing to Report
d. Legal — Marc Sebora — Absent
e. General Manager — Jeremy Carter
i. Wrapping up year end
ii. Spoke of the Fiscal Year 2023 Omnibus Spending Bill, which, did not include
spending for distribution transformers.
6. Policies
a. Review Policies
No changes recommended at this time.
b. Approve Changes
7. Unfinished Business
8. New Business
a. Approve 2023 Pay Grid
GM Carter presentedi for approval the 2023 Pay Grid. GM Carter reviewed the
statistical findings. GM Carter stated that HUC annually considers a market
adjustment to the current pay grid based on market statistics. Based on the findings,
the recommendation would be for the non -union pay grid for 2023 to incorporate a
4% grid shift; which wouild mirror the union contract. This also has the Administrative
Coordinator moving to an Administrative/HR Coordinator position.
Motion by Commissioner Hanson, second by Commissioner Silvernale to Approve
2023 Pay Grid. Motion carried unanimously.
b. Approve 2023 Budgets & CIP
GM Carter presented for approval the 2023 Budgets & CIP. At the November, 23
2022 Commission meeting a hiigh-level overview of the 2023 budgets were reviewed
and discussed in detail. Since that time, some additions and reductions have been
made on: the revenue/expense side of the 2023 electric & natural gas d�ivision
operating budgets reflected in the final budgets. The adjustments increase the P/L
2
N1 OCT MIN774'r4fFt
$64K, GRE 0 &M agreement expense of $10K and Equipment Insurance Premium
exp of a $106K.
Commissioner Hanson inquired about the changes in the deductibles and if
adjusting cash in designated funds to accommodate would be appropriate. Staff will
look into;.
There were no adjuistmenits on the CIP.
Commissioners thanked the Staff for, the hard work throughout the year.
Motion by Commissioner Hanson second by Commissioner Wendorff to Approve
202�3 Budgets & CIIP. Motion carded unanimously
c:. Approve Cancellation of PO#008631 — 2021 Ram 3500 Cab & Chassis
Mr,. Webster presented Approval, of Cancellation of POi#008631 — 2021 Ram, 35OiO
Cab & Chassis. The Commission approved the purchase of the 2021 Ram 35010
Cab & Chassis on January 28,, 2021 and the manufacturer has not accepted the
order to establish a build date. A utility, body was, also purchased for the vehicle in
2021 and is currently waiting to be installed. The purchased utility body can only be
installed on a Dodge/Ram or Ford cab and chassis due to the axle dimensions. Staff
recommends that the order be cancelled and allowed to purse a cab and chassis
through other channels.
Motion by Commiissioner Martinez, second by Commissioner Hanson to Approve
Cancellation of POi#OiO8631 — 2021 Ram, 3500 Cab & Chassis. Motion carried
unanimously.
N. Approve Req#0094quipment Utility Body
Mr. Webster presented Approval of Req#009402 — ABM Equipment Utility Body.
and all labor required for the installation oO2�2/23 GMC 3i5,010 which is currently
on order, The utility body is being ordered through the Minnesota State Purchasing
Programi.
Motion by Commissioner Hanson, second by, Commissioner Silvernale toApprove
Req#0094012 — ABM Equipment Utility Body. Motion carried unainimously
ei. Approve Req#009403 — DUIALDRAW Paint Booth
Mr. Webster presented Approval of Req#009403 — DUALDRAW Paint Booth. In
accordance with the report provided by the M,MUA Safety Team on October 1, 2021
noting that the current shoip-bpaint booth does not meet the requirements
fume removal system. Based on the specifications of the two units that were found�,
the Marathon unit is $1�01K cheaper however, it does not compare to what
K
DALDRAW offers with the construction and safety specs. Staff recommends the
unit that is provided by DUAL,DRAW.
Motion by Commissioner Wendorff, second by Commissioner Silvernale to Approve
Req#00940!3 — DUALD,RAW Paint B,00th, Motion carried unanimously,
f. Approve Transmission Facilities Assignment Agreement - MRES
GM Carter presented the Approval of the Transmission Facilities Assignment
Agreement —MRES. This is a supplemental w® to the Transmission Facilities
Assignment Agreement (T'FAA) with Missouri River Energy Services (MRESSy
entered into on October 31�, 20,16. The purpose of the agreement is to, declare the
new eq�uiipment that is to be added to the Hutchinson Substation in the upcoming
years and include it in the TFAA. Mr. Sebora has also reviewed the agreement,
Motion by Commissioner Hanson, second by Commissioner Martinez to Approve
Conduct the Performance Review of Hutchinson Utilities Commission General
Manager Pursuant to Minnesota Statute 13D,O�5 Subid. 3(a)
W
President Cheney introduced the agienda item, the General Manager's annuR
performance review. President Cheney aded GM Carter that he has the option
have the performance review conducted as either an open session or a cloiis
session of the Utility Commission. GM Carter indicated his decision to have t
review as part of a closed session.
President Cheney entertained a motion to go into closed session to conduct the
twel�ve-miointhi (annual) performance review as permitted under Minnesota Statute
13D,.05, Subdivision 3(a). Motion, by Commissioner Martinez, second by
Commissioner Hanson 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 3,42 p.m.
4
Hutchinson Utilities Commission
Summary of Closed Meeting Proceedings
General Manager Performance Appraisal
Wednesday, December 21, 2022,
On December 21, 2022, 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 Matt Cheney, Anthony Hanson, Don
Martinez, Bob Wendorff, and Kathy Silvernale, and Administrative Coordinator Angie RaclIke. Mr.
Carter exercised his right to close the proceedings to the public as permitted under Minnesota
Statute 13D.05, Subdivision 3(a),.
Motion by Martinez, second by Hanson 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 3:42 p.m.
The Commiiss,ion 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 4,29 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 Wendoff, second by Martinez to close the closed session. The motion passed
unanimously. The Commission moved back into open session! at 4:32 pm.
Motion by Hanson, second by Silvernale to establish the aggregate review score of 4.29 to
increase General Manager Jeremy Carter's annual salary to $197,572.28. The motion carried
unanimously.
Motion to adjourn by Martinez, second by Wendorff. The motion carried unanimously, and the
meeting adjourned at 4:34 p.m.
te
'bon Martinez, Secretary
ATTEST: N°, adt
Matt Cheney, President
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