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HomeMy WebLinkAbout2-25-2026 HUCCPHUTCHINSON UTILITIES COMMISSION AGENDA REGULAR MEETING February 25, 2026 3:00 p.m. 1. CONFLICT OF INTEREST 2. APPROVE CONSENT AGENDA a. Approve Minutes b. Ratify Payment of Bills 3. APPROVE FINANCIAL STATEMENTS 4. OPEN FORUM 5. COMMUNICATION a. City Administrator b. Divisions C. Human Resources d. Legal e. General Manager 6. POLICIES a. Review Policies i. Section 2 of Exempt Handbook ii. Section 2 of Non -Exempt Handbook b. Approve Changes i. Alcohol or Drugs (Exempt and Non -Exempt) 7. UNFINISHED BUSINESS 8. NEW BUSINESS a. Approval of 3M Natural Gas Transportation and Daily Swing Supply Agreement b. Approve Req#010514 - Cooling Tower Pipe Repair Plant #1 9. ADJOURN MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, January 28, 2026 Call to order — 3:00 p.m. President Matt Cheney called the meeting to order. Members present: President Matt Cheney; Secretary Don Martinez; Commissioner Kathy Silvernale; Commissioner Tom Lambert; GM Jeremy Carter; Attorney Marc Sebora 1. Conflict of Interest 2. Commission Reorganization a. A motion made by Commissioner Lambert, second by Commissioner Silvernale to elect Don Martinez to the position of President. Motion carried unanimously. b. A motion made by Commissioner Silvernale, second by Commissioner Martinez to elect Tom Lambert to the position of Vice President. Motion carried unanimously. c. A motion made by Commissioner Lambert, second by Commissioner Martinez to elect Matt Cheney to the position of Secretary. Motion carried unanimously. d. A motion made by Commissioner Martinez, second by Commissioner Silvernale to re -appoint Marc Sebora as legal counsel. Motion carried unanimously. e. A motion made by Commissioner Martinez, second by Commissioner Silvernale re -appoint Angie Radke as recording secretary. Motion carried unanimously. f. A motion made by Commissioner Martinez, second by Commissioner Lambert to designate Citizens Bank & Trust, Wells Fargo Bank, Wells Fargo Advisors, Home State Bank, Morgan Stanley and Cetera Investment Services as depositories for utility funds. Motion carried unanimously. 3. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Silvernale, second by Commissioner Lambert to Approve the Consent Agenda. Motion carried unanimously. 4. Approve Financial Statements GM Carter presented the Financial Statements. Auditors are here this week. December financials are always difficult to compare to previous years due to other year-end entries. The 2025 entry for pension Liability has not been completed yet as the report is not available for a few weeks. There is a new government pronouncement — governments must now report an estimate of what next year's sick payout is going to be. 1 Combined Division sales for resales surpassed year to date 2024. Electric Division consumption year to date was on budget. GM Carter reviewed the Power Cost Adjustment that was made in 2024 vs 2025. Natural Gas Division consumption year to date was also close to budget. GM Carter reviewed the Fuel Credit Adjustment for year 2024 vs 2025. Cash Balance, charts and investments were also reviewed. Motion by Commissioner Lambert, second by Commissioner Silvernale to Approve the Financial Statements. Motion carried unanimously. 5. Open Forum 6. Communication a. City Administrator— Matthew Jaunich — i. City Council approved Solar projects for City of Hutchinson ii. Elected officials are receiving a lot of feedback on the Data Center with miscommunication, concerns about blackouts, energy rates and water usage. b. Divisions i. Dan Lang, Engineering Services Manager — Nothing ii. Dave Hunstad, Electric Transmission/Distribution Manager- 1. Update on Solar projects that were approved 2. ElectriCities of North Carolina called for Mutual Aid event. 2 employees volunteered to take the Digger Truck to help. However, the ice storm that was predicted turned out to be snow so the employees came back. iii. Mike Gabrielson, Production Manager 1. LM6000 update iv. Jared Martig, Financial Manager- Absent v. Byron Bettenhausen - Absent c. Human Resources — Angie Radke - i. Working on OSHA Logs and Pay Equity d. Legal — Marc Sebora — i. Nothing to report e. General Manager — Jeremy Carter i. Business update ii. Working on Contracts iii. Winter Storm Fern update. The severe cold weather created a significant gas impact. GM Carter provided history on how the industry works for natural gas. 7. Policies a. Review Policies i. Section 1 of Exempt Handbook ii. Section 1 of Non -Exempt Handbook No changes recommended at this time. 2 b. Approve Changes i. Introduction ii. Definitions Ms. Radke spoke of the policy changes. Both policies listed above were updated to remove the word, Director. Additional changes to the Definitions policy included updating Administrative/HR title and to remove Computer Systems Analyst since that position is no longer at HUC, policies are still applicable. Motion by Commissioner Martinez, second by Commissioner Lambert to Approve Policy Changes. Motion carried unanimously. 8. Unfinished Business 9. New Business a. Review Annual Solar Production Mr. Hunstad presented the Annual Solar Production for 2025. Staff is able to calculate the cost savings by comparing the actual MISO hourly Locational Marginal Pricing (LMP) with the hourly production of the array. For 2025, the array generated 901,517 KWH with a cost savings of $38,588.20. The array was anticipated to operate at a 14% capacity factor, however for 2025 the array is operating better than expected with a capacity factor of 16.4%. b. Approve Cogeneration and Small Power Production Tariff President Matt Cheney will be abstaining from item 8b since President Matt Cheney has solar on his building. Mr. Hunstad presented Approval of Cogeneration and Small Power Production Tariff. Municipal Utilities annually shall file for review and approval of a cogeneration and small power production tariff with the governing body. Mr. Hunstad reviewed Schedules 1: For facilities of 40KW or less and Schedule 4: for facilities 40KW — 100KW. Motion by Commissioner Marintez, second by Commissioner Silvernale to Approve Cogeneration and Small Power Production Tariff. Motion carried unanimously. c. Review 2025 Distributed Energy Resources Generation Report Mr. Hunstad reviewed the 2025 Distributed Energy Resources Generation Report. The law requires municipal utilities that have adopted co -generation policies to 3 review annually all net energy billed qualifying facilities. HUC has 21 active Solar DER Co -generation facilities which consist of 13 Commercial, 7 Residential and 1 Utility owned. d. Approve Pay Equity Report Ms. Radke presented the consideration of Approval of the Pay Equity Report. HUC is required to submit a pay equity report every three years, and HUC will be reporting for 2025. Staff is happy to report that HUC is in compliance with the state requirements. The attached report must be approved by Hutchinson Utilities Commission and submitted to Minnesota Management and Budget (MMB) Department. The T-test Results value of Degrees of Freedom of 44 with a Value of T of -4.299 included in Section II of the Compliance Report is below the Value of T on the T-Test Table of 1.684 that is required to be in compliance. It is requested that the Commission accept and approve the enclosed report before it can be sent to the State by the end of January. A motion by Commissioner Silvernale, second by Commissioner Lambert to Approve the Pay Equity Report. Motion carried unanimously. e. Approve Change Order #2 — Hutchinson Substation Control Enclosure Modifications Mr. Lang presented Approval of Change Order #2 — Hutchinson Substation Control Enclosure Modifications. Change order issued to Electrical Power Products (EP2) for design modifications to the control enclosure for Hutchinson Substation project. A motion by Commissioner Martinez, second by Commissioner Silvernale to Approve. Motion carried unanimously. f. Approve Advertisement for Bids — Plant #1 Substation 115kV Transformer Mr. Lang presented Approval of Advertisement for Bids — Plant #1 Substation 115kV Transformer. Mr. Lang presented the Base Bid along with the Required Alternate Bid along with the background of the number of transformers and breakers that have been discussed for the Plant #1 Substation rebuild due to the Willmar 115kV line. A motion by Commissioner Silvernale, second by Commissioner Lambert to Approve Advertisement for Bids — Plant #1 Substation 115kV Transformer. 12 Motion carried unanimously. 10. Adjourn There being no further business, a motion by Commissioner Martinez, second by Commissioner Lambert to adjourn the meeting at 3:48p.m. Motion carried unanimously. 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U U .4 1 \ H H [� Ul N N U W N H H H U H H U ul Iq a 3 3 W 3 G cn W x x W p, N H +) CD Q O O x H O Ga W H x W W x .r1 � H O p0, (0 w w u a a O Q> u >> u u Q �D H z a x m O a w FT� w 04 w � Q O w z a Q a H w w CQ x w Z O O O O U W H a H H H H Q a > U H H x x .Y. U 04 H H n Z Q Q o a w 0 0 0 x a °w H w H O a a a �a w a O O N N N Q x H U 9 x U a W W a a W H W FG (0w z O W UHi H W O a a a H x w o m m O 04 04 04 � N N M oo Q Q oo oo oo oo oo oo oo oo oo oo oo oo U U .� x x U U Q0 .. � � W C7 W C7 W C7 W C7 W C7 W C7 W C7 W C7 W C7 W W E-i E-i H Z:7) O FC FC H -ri Ul J-) �-j N U) U U H H l0 i-1 r1 l) a' l0 l0 l0 l0 l0 l0 l0 l0 l0 Q Q N(0 'C'' (0 C7 N N N N N N N N N Z Z O x 0 Q O O O O O O O O O H H N f7 J-) N N N N N N N N N N N f-I U O ,D Q Cia O O O O O O O O O HUTCHINSON UTILITIES COMMISSION COMBINED DIVISIONS FINANCIAL REPORT FOR JANUARY, 2026 Combined Division Customer Revenue Sales for Resale NG Transportation Electric Division Transfer Other Revenues Interest Income TOTAL REVENUES Salaries & Benefits Purchased Commodities Transmission Generator Fuel/Chem. Depreciation Transfers (Elect./City) Operating Expense Debt Interest TOTAL EXPENSES NET PROFIT/(LOSS) 8.33% of Year Comp. 2026 2025 Di . %Chna 2026 2025 Di . %Chna Full Yr Bud %of Bud $ 4,991,163 $ 3,740,166 $ 1,250,997 33.4% $ 4,991,163 $ 3,740,166 $ 1,250,997 33.4% $ 40,209,447 12.4% $ 507,383 $ 337,574 $ 169,809 50.3% $ 507,383 $ 337,574 $ 169,809 50.3% $ 4,339,200 11.7% $ 168,061 $ 175,674 $ (7,613) (4.3%) $ 168,061 $ 175,674 $ (7,613) (4.3%) $ 2,037,588 8.2% $ 60,667 $ 60,639 $ 28 0.0% $ 60,667 $ 60,639 $ 28 0.0% $ 728,000 8.3% $ 40,366 $ 38,836 $ 1,530 3.9% $ 40,366 $ 38,836 $ 1,530 3.9% $ 573,955 7.0% $ 33,293 $ 67,397 $ (34,104) (50.6%) $ 33,293 $ 67,397 $ (34,104) (50.6%) $ 583,457 5.7% $ 5,800,933 $ 4,420,286 $ 1,380,647 31.2% $ 5,800,933 $ 4,420,286 $ 1,380,647 31.2% $ 48,471,647 12.0% $ 744,200 $ 647,952 $ 96,248 14.85% $ 744,200 $ 647,952 $ 96,248 14.9% $ 8,524,717 8.7% $ 3,799,349 $ 2,380,820 $ 1,418,530 59.6% $ 3,799,349 $ 2,380,820 $ 1,418,530 59.6% $ 20,816,157 18.3% $ 219,819 $ 187,114 $ 32,705 17.5% $ 219,819 $ 187,114 $ 32,705 17.5% $ 4,200,000 5.2% $ 136,640 $ 97,984 $ 38,656 39.5% $ 136,640 $ 97,984 $ 38,656 39.5% $ 2,008,656 6.8% $ 353,796 $ 349,473 $ 4,323 1.2% $ 353,796 $ 349,473 $ 4,323 1.2% $ 4,190,000 8.4% $ 222,552 $ 222,524 $ 28 0.0% $ 222,552 $ 222,524 $ 28 0.0% $ 2,670,626 8.3% $ 277,172 $ 349,831 $ (72,659) (20.8%) $ 277,172 $ 349,831 $ (72,659) (20.8%) $ 3,791,274 7.3% $ 38,805 $ 49,688 $ (10,883) (21.9%) $ 38,805 $ 49,688 $ (10,883) 21.9% $ 465,657 8.3% $ 5,792,333 $ 4,285,386 $ 1,506,947 35.2% $ 5,792,333 $ 4,285,386 $ 1,506,947 35.2% $ 46,667,087 12.4% $ 8,600 $ 134,899 $ (126,300) (93.6%)l 8,600 $ 134,899 $ (126,300) (93.6%) $ 1,804,560 0.5% January January YTD YTD 2026 HUC 2026 2025 Change 2026 2025 Change Budget Target Gross Margin %: 20.3% 28.6% -8.3% 20.3% 28.6% -8.3% 32.2% 26%- 28% Operating Income Per Revenue $ (%): -0.2% 2.3% -2.4% -0.2% 2.3% -2.4% 2.8% 1%-4% Net Income Per Revenue $ (%): 0.1% 3.1% -2.9% 0.1% 3.1% -2.9% 3.7% 1%-3% HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION FINANCIAL REPORT FOR JANUARY, 2026 , 833�6 of Year Comp. 2026 2025 Di . %Chna 2026 2025 Di %Chna FullYrBud %of Bud Electric Division Customer Revenue $ 2,201,210 $ 1,958,614 $ 242,595 12.4% $ 2,201,210 $ 1,958,614 $ 242,595 12.4% $ 27,471,918 8.0% Sales for Resale $ 507,383 $ 337,574 $ 169,809 50.3% $ 507,383 $ 337,574 $ 169,809 50.3% $ 4,339,200 11.7% Other Revenues $ 13,171 $ 15,573 $ (2,402) (15.4%) $ 13,171 $ 15,573 $ (2,402) (15.4%) $ 202,862 6.5% Interest Income $ 18,041 $ 35,093 $ (17,052) (48.6%) $ 18,041 $ 35,093 $ (17,052) (48.6%) $ 308,457 5.8% TOTAL REVENUES $ 2,739,805 $ 2,346,855 $ 392,950 16.7% $ 2,739,805 $ 2,346,855 $ 392,950 16.7% $ 32,322,437 8.5% Salaries & Benefits $ 551,366 $ 492,869 $ 58,497 Purchased Power $ 1,364,407 $ 1,177,783 $ 186,624 Transmission $ 219,819 $ 187,114 $ 32,705 Generator Fuel/Chem. $ 136,640 $ 97,984 $ 38,656 Depreciation $ 254,590 $ 251,641 $ 2,949 Transfers (Elect./City) $ 172,817 $ 172,789 $ 28 Operating Expense $ 189,033 $ 237,838 $ (48,805) Debt Interest $ 30,138 $ 32,771 $ (2,633) TOTAL EXPENSES $ 2,918,809 $ 2,650,789 $ 268,020 NET PROFIT/(LOSS) $ (179,004) $ (303,934) $ 124,930 11.9% $ 551,366 $ 492,869 $ 58,497 11.9% $ 6,178,442 15.8% $ 1,364,407 $ 1,177,783 $ 186,624 15.8% $ 13,035,315 17.5% $ 219,819 $ 187,114 $ 32,705 17.5% $ 4,200,000 39.5% $ 136,640 $ 97,984 $ 38,656 39.5% $ 2,008,656 1.2% $ 254,590 $ 251,641 $ 2,949 1.2% $ 3,060,000 0.0% $ 172,817 $ 172,789 $ 28 0.0% $ 2,073,802 (20.5%) $ 189,033 $ 237,838 $ (48,805) (20.5%) $ 2,553,967 (8.0%) $ 30,138 $ 32,771 $ (2,633) JLgL $ 361,657 $ 33,471,839 10.1% $ 2,918,809 $ 2,650,789 $ 268,020 10.1% (41.1%) $ (179,004) $ (303,934) $ 124,930 (41.1%) $ (1,149,402 8.9% 10.5% 5.2% 6.8% 8.3% 8.3% 7.4% 8.3% 8.7% 15.6% 4009KNIA 833% of Year Comp. 2026 2025 Di . %Chna 2026 2025 Di %Chna FullYrBud %of Bud Electric Division Residential 4,845,450 4,789,618 55,832 1.17% 4,845,450 4,789,618 55,832 1.17% 54,016,284 9.0% All Electric 380,895 383,307 (2,412) (0.63%) 380,895 383,307 (2,412) (0.63%) 2,281,979 16.7% Small General 1,553,120 1,822,806 (269,686) (14.80%) 1,553,120 1,822,806 (269,686) (14.80%) 17,753,235 8.7% Large General 7,781,970 6,202,050 1,579,920 25.47% 7,781,970 6,202,050 1,579,920 25.47% 92,221,607 8.4% Industrial 7,620,000 8,556,000 (936,000) (10.94%) 7,620,000 8,556,000 (936,000) (10.94%) 97,880,814 7.8% Total KWH Sold 22,181,435 21,753,781 427,654 1.97% 22,181,435 21,753,781 427,654 1.97%1 264,153,919 8.4% January January YTD YTD 2026 HUC 2026 2025 Change 2026 2025 Change Budget Target Gross Margin %: 22.0% 19.5% 2.5% 22.0% 19.5% 2.5% 24.7% 24%-28% Operating Income Per Revenue $ (%): -6.2% -13.3% 7.1% -6.2% -13.2% 7.1% -3.6% 0%- 1% Net Income Per Revenue $ (%): -6.5% -13.0% 6.4% -6.5% -13.0% 6.4% -3.6% 0%- 1% Customer Revenue per KWH: $0.0992 $0.0900 $0.0092 $0.0992 $0.0900 $0.0092 $0.1040 $0.1040 Total Power Supply Exp. per KWH: $0.0957 $0.0855 $0.0102 $0.0957 $0.0855 $0.0102 $0.0911 $0.0911 Net Loss decreased by $124,930 over January 2025. Revenues were up slightly in part due to the Power Cost Adjustment. Expenses were higher due to higher energy & transmission costs as well as fuel costs. Sales for Resale of $507,383 consisted of $276,383 in market sales, $98,000 in capacity sales to Rice Lake, $70,000 in capacity sales to AEP, and $63,000 in capacity sales to Nextera. January 2025 Sales for Resale of $337,574 included $92,324 in market sales, $98,000 in capacity sales to Rice Lake and $147,250 in capacity sales to AEP. January 2024 Sales for Resale of $430,551 consisted of $186,301 in market sales, $98,000 in capacity sales to Rice Lake and $146,250 in capacity sales to AEP. Overall Purchased Power increased by $186,624. MRES purchases increased by $42,388 and market purchases/MISO costs increased by $144,236. The average cost of MISO power was $86.90/mwh (3,271 mwh's purchased), compared to $37.35/mwh (3,091 mwh's purchased) in January 2025. January 2026 PCA was $.00721/kwhr bringing in an additional $158,944 for the month and YTD. There was no power cost adjustment for January 2025. Gas Division Customer Revenue Transportation Electric Div. Transfer Other Revenues Interest Income TOTAL REVENUES Salaries & Benefits Purchased Gas Operating Expense Depreciation Transfers (City) Debt Interest TOTAL EXPENSES NET PROFIT/(LOSS) HUTCHINSON UTILITIES COMMISSION GAS DIVISION FINANCIAL REPORT FOR JANUARY, 2026 8.33% of Year Comp. 2026 2025 2 %Chna 2026 2025 2 . %Chna Full YrBud %of Bud $ 2,789,953 $ 1,781,551 $ 1,008,402 56.6% $ 2,789,953 $ 1,781,551 $ 1,008,402 56.6% $ 12,737,529 21.9% $ 168,061 $ 175,674 $ (7,613) (4.3%) $ 168,061 $ 175,674 $ (7,613) (4.3%) $ 2,037,588 8.2% $ 60,667 $ 60,639 $ 28 0.0% $ 60,667 $ 60,639 $ 28 0.0% $ 728,000 8.3% $ 27,194 $ 23,262 $ 3,932 16.9% $ 27,194 $ 23,262 $ 3,932 16.9% $ 371,093 7.3% $ 15,253 $ 32,305 $ (17,052) (52.8%) $ 15,253 $ 32,305 $ (17,052) (52.8%) $ 275,000 5.5% $ 3,061,128 $ 2,073,431 $ 987,697 47.6% $ 3,061,128 $ 2,073,431 $ 987,697 47.6% $ 16,149,210 19.0% $ 192,834 $ 155,083 $ 37,751 24.3% $ 192,834 $ 155,083 $ 37,751 24.3% $ 2,346,275 8.2% $ 2,434,943 $ 1,203,037 $ 1,231,906 102.4% $ 2,434,943 $ 1,203,037 $ 1,231,906 102.4% $ 7,780,842 31.3% $ 88,139 $ 111,993 $ (23,854) (21.3%) $ 88,139 $ 111,993 $ (23,854) (21.3%) $ 1,237,307 7.1% $ 99,207 $ 97,833 $ 1,374 1.4% $ 99,207 $ 97,833 $ 1,374 1.4% $ 1,130,000 8.8% $ 49,735 $ 49,735 $ - 0.0% $ 49,735 $ 49,735 $ - 0.0% $ 596,824 8.3% $ 8,667 $ 16,917 $ (8,250) 0.0% $ 8,667 $ 16,917 $ (8,250) 48.8% $ 104,000 8.3% $ 2,873,525 $ 1,634,598 $ 1,238,927 75.8% $ 2,873,525 $ 1,634,598 $ 1,238,927 75.8% $ 13,195,248 21.8% $ 187,604 $ 438,833 $ (251,230) (57.2%) $ 187,604 $ 438,833 $ (251,230) (57.2%) $ 2,953,962 6.4% PO�i�(( (f��������������������� Ii �i I ����������� �ll�i��f��(���iii��������������� 8.33% of Year Comp. 2026 2025 2 . %Chnq 2026 2025 p %Chnq Full YrBud %of Bud Gas Division Residential 88,881,026 87,187,000 1,694,026 1.94% 88,881,026 87,187,000 1,694,026 1.94% 410,283,000 21.7% Commercial 62,539,263 60,594,768 1,944,495 3.21% 62,539,263 60,594,768 1,944,495 3.21% 317,957,000 19.7% Industrial 105,279,384 107,817,620 (2,538,236) (2.35%) 105,279,384 107,817,620 (2,538,236) (2.35%) 820,578,000 12.8% Total CF Sold 256,699,673 255,599,388 1,100,285 0.43%1 256,699,673 255,599,388 1,100,285 0.43%1 1,548,818,000 16.6% January January YTD YTD 2026 HUC 2026 2025 Change 2026 2025 Change Budget Target Gross Margin %: 18.8% 39.1% -20.2% 18.8% 39.1% -20.2% 47.7% 37%-40% Operating Income Per Revenue $ (%): 5.2% 20.0% -14.8% 5.2% 20.0% -14.8% 15.9% 8%-11% Net Income Per Revenue $ (%): 6.1% 21.2% -15.0% 6.1% 21.2% -15.0% 18.3% 7%-11% Contracted Customer Rev. per CF: $0.0098 $0.0068 $0.0030 $0.0098 $0.0068 $0.0030 $0.0069 Customer Revenue per CF: $0.0116 $0.0071 $0.0045 $0.0116 $0.0071 $0.0045 $0.0095 Total N.G. Supply Exp. per CF: $0.0096 $0.0048 $0.0047 $0.0096 $0.0048 $0.0047 $0.0053 Notes/Graphs: January Net Income decreased by $253,908. Increased revenues were offset by the high gas costs for January. January 2026 Fuel Cost Adjustment was $3.4133/MCF bringing in an additional $523,639 for the month & YTD. January 2025 Fuel Cost "Credit" Adjustment was $1.20667/MCF crediting customers $183,085 for the month & YTD. Current Assets UnrestrictedlUndesignated Cash Cash Petty Cash Designated Cash Capital Expenditures - Five Yr. CIP Payment in Lieu of Taxes Rate Stabilization - Electric Rate Stabilization - Gas Catastrophic Funds Restricted Cash Bond & Interest Payment 2017 Bond & Interest Payment 2012 Debt Service Reserve Funds Total Current Assets Receivables Accounts (net of uncollectible allowances) Interest Total Receivables Other Assets Inventory Prepaid Expenses Sales Tax Receivable Deferred Outflows - Electric Deferred Outflows - Gas Total Other Assets Total Current Assets Capital Assets Land & Land Rights Depreciable Capital Assets Accumulated Depreciation Construction - Work in Progress Total Net Capital Assets HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED JANUARY31, 2026 Electric Gas Total Total Net Change Division Division 2026 2025 Total (YTD) (8,510,992.12) 15,286,553.33 6,775,561.21 11,976,530.02 (5,200,968.81) 680.00 170.00 850.00 850.00 - 2,750,000.00 700,000.00 3,450,000.00 3,450,000.00 - 1,345,802.00 596,824.00 1,942,626.00 1,942,626.00 - 1,301,838.58 - 1,301,838.58 337,362.32 964,476.26 - 200,000.00 200,000.00 615,294.19 (415,294.19) 800,000.00 200,000.00 1,000,000.00 1,000,000.00 - 196,942.72 - 196,942.72 197,609.36 (666.64) - 364,000.00 364,000.00 363,833.30 166.70 1,175,000.00 2,072,000.00 3,247,000.00 3,255,256.00 (8,256.00) (940,728.82) 19,419,547.33 18,478,818.51 23,139,361.19 (4,660,542.68) 2,224,920.75 2,663,603.17 4,888,523.92 3,666,489.96 1,222,033.96 49,785.32 49,785.33 99,570.65 148,628.57 (49,057.92) 2,274,706.07 2,713,388.50 4,988,094.57 3,815,118.53 1,172,976.04 2,302,092.43 511,095.51 2,813,187.94 2,558,140.89 255,047.05 314,229.00 (167,685.42) 146,543.58 576,039.24 (429,495.66) 123,183.82 - 123,183.82 398,794.82 (275,611.00) 342,759.00 - 342,759.00 342,759.00 - - 114,253.00 114,253.00 114,253.00 - 3,082,264.25 457,663.09 3,539,927.34 3,989,986.95 (450,059.61) 4,416,241.50 22,590,598.92 690,368.40 3,899,918.60 95,282,730.84 45,149,321.56 (51,310,839.26) (23,480,603.63) 10,073,682.99 3,076.32 54,735,942.97 25,571,712.85 27,006,840.42 30,944,466.67 (3,937,626.25) 4,590,287.00 4,590,287.00 - 140,432,052.40 139,369,989.91 1,062,062.49 (74,791,442.89) (70,832,653.05) (3,958,789.84) 10,076,759.31 2,393,925.47 7,682,833.84 80,307,655.82 75,521,549.33 4,786,106.49 Total Assets 59,152,184.47 48,162,311.77 107,314,496.24 106,466,016.00 848,480.24 Current Liabilities Current Portion of Long-term Debt Bonds Payable Bond Premium Lease Liability - Solar Array Accounts Payable Accrued Expenses Accrued Interest Accrued Payroll Total Current Liabilities Long -Term Liabilities Noncurrent Portion of Long-term Debt 2017 Bonds 2012 Bonds Bond Premium 2012 Pension Liability- Electric Pension Liability - Electric OPEB Pension Liability - Nat Gas Pension Liability - Nat Gas OPEB Accrued Vacation Payable Accrued Severance Deferred Outflows - Electric Deferred Outflows - Nat Gas Total Long -Term Liabilities Net Position Retained Earnings Total Net Position HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED JANUARY31, 2026 Electric Gas Total Division Division 2026 820,000.00 19, 546.00 2,709,292.44 60,276.06 78,410.01 3,687,524.51 10,930,000.00 395,907.36 1,832,248.00 39,880.00 635,863.89 224,153.38 1,294,449.00 15,352,501.63 2,080,000.00 185,608.32 2,368,322.97 17,333.30 25,101.35 4,676,365.94 (30,935.09) 610,749.00 13,293.00 224,492.28 44,404.41 431,483.00 1,293,486.60 2,900,000.00 185,608.32 19, 546.00 5,077,615.41 77,609.36 103,511.36 8,363,890.45 10,930,000.00 364,972.27 1,832,248.00 39,880.00 610,749.00 13,293.00 860,356.17 268,557.79 1,294,449.00 431,483.00 16,645,988.23 Total Net Change 2025 Total (YTD) 2, 770, 000.00 130, 000.00 185,608.32 - - 19,546.00 4,189,914.27 887,701.14 99,376.01 (21,766.65) 93,211.91 10,299.45 7,338,110.51 1,025,779.94 11,750,000.00 (820,000.00) 2,080,000.00 (2,080,000.00) 584,037.55 (219,065.28) 1,832,248.00 - 39,880.00 - 610,749.00 - 13,293.00 - 739,330.02 121,026.15 245,721.73 22,836.06 1,294,449.00 - 431,483.00 - 19,621,191.30 (2,975,203.07) 40,112,158.33 42,192,459.23 82,304,617.56 79,506,714.19 2,797,903.37 40,112,158.33 42,192,459.23 82,304,617.56 79,506,714.19 2,797,903.37 Total Liabilities and Net Position 59,152,184.47 48,162,311.77 107,314,496.24 106,466,016.00 848,480.24 Hutchinson Utilities Commission Cash -Designations Report, Combined 1/31/2026 Financial Institution Current Interest Rate Annual Interest Balance, January 2026 Balance, December 2025 Change in Cash/Reserve Position Savings, Checking, Investments varies varies varies 18,478,818.51 18,558,767.46 (79,948.95) Total Operating Funds 18,478,818.51 18,558,767.46 (79,948.95) Debt Reserve Requirements Bond Covenants - sinking fund Debt Reserve Requirements Bond Covenants -1 year Max. P & I Total Restricted Funds Operating Reserve Rate Stabalization Funds PILOT Funds Catastrophic Funds Capital Reserves Total Designated Funds Min 60 days of 2026 Operating Bud. Charter (Formula Only) Risk Mitigation Amount 5 Year CIP (2026-2030 Fleet & Infrastructure Maintenance) 560,942.72 280,471.36 280,471.36 3,247,000.00 3,255,256.00 (8,256.00) 3,807,942.72 3,535,727.36 272,215.36 7,079,514.50 7,079,514.50 1,501,838.58 1,917,132.77 (415,294.19) 1, 942, 626.00 1, 942, 626.00 1, 000, 000.00 1, 000, 000.00 3,450,000.00 3,450,000.00 14,973,979.08 15,389,273.27 (415,294.19) YE YE YE YE YT0 2022 2023 2024 2025 2026 Debt to Asset 31.4% 28.6% 26.0% 22.3% 23.3% Current Ratio 4.47 4.48 3.67 3.10 2.73 RONA -1.38% 1.96% 2.63% 3.23% 0.01% HUC Target >0 Historical Change in Cash Balance Month End Electric Elec. Change Natural Gas Gas Change Total Total Change 1/31/2026 (940,729) 19,419,547 18,478,819 12/31/2025 (416,323) (524,406) 18,975,091 444,456 18,558,768 (79,949) 12/31/2024 6,134,710 (6,551,033) 17,717,453 1,257,638 23,852,164 (5,293,396) 12/31/2023 12,158,338 (6,023,628) 15,622,242 2,095,211 27,780,580 (3,928,416) 12/31/2022 11,633,212 525,126 15,450,554 171,688 27,083,766 696,815 12/31/2021 12,870,253 (1,237,041) 15,086,000 364,554 27,956,253 (872,487) 12/31/2020 14,239,233 (1,368,981) 15,019,173 66,827 29,258,406 (1,302,153) 12/31/2019 12,124,142 2,115,092 13,837,040 1,182,133 25,961,181 3,297,225 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 Significant increase in cash balance is due to issuing bonds for the generator project. Hutchinson Utilities Commission Cash -Designations Report, Electric 1/31/2026 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest January 2026 December 2025 Position �' Rr Savings, Checking, Investments varies varies varies 18,478,818.51 18,558,767.46 (79,948.95) Total HUC Operating Funds 18,478,818.51 18,558,767.46 (79,948.95) Debt Restricted Requirements Debt Restricted Requirements Total Restricted Funds Bond Covenants - sinking fund Bond Covenants -1 year Max. P & 1 196,942.72 1,175,000.00 1,371,942.72 98,471.36 1,183,256.00 1,281,727.36 98,471.36 (8,256.00) 90,215.36 Excess Reserves Less Restrictions, Electric (2,312,671.54) (1,698,050.47) (614,621.07) J11J! !!1 1 !1 J Operating Reserve Min 60 days of 2026 Operating Bud. 5,068,639.83 5,068,639.83 Rate Stabalization Funds $400K-$1.2K 1,301,838.58 1,301,838.58 PILOT Funds Charter (Formula Only) 1,345,802.00 1,345,802.00 Catastrophic Funds Risk Mitigation Amount 800,000.00 800,000.00 Capital Reserves 5 Year CIP (2026-2030 Fleet & Infrastructure Maintenance) 2,750,000.00 2,750,000.00 Total Designated Funds 11,266,280.41 11,266,280.41 Excess Reserves Less Restrictions & Designations, Electric (13,578,951.95) (12,964,330.88) (614,621.07) YE YE YE YE YTD APPA Ratio HUC 2022 2023 2024 2025 2026 5K-10K Cust. Target Debt to Asset Ratio (* w/Gen.) 34.8% 34.0% 33.9% 31.6% 32.2% 39.8% pp ppppp ryry NNNNNNNNNNNN Current Ratio 4.96 4.35 2.38 0.80 0.73 3.75 >2.0 RONA -4.2% -0.9% -2.1% 0.4% -0.3% NA >0% Hutchinson Utilities Commission Cash -Designations Report, Gas 1/31/2026 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest January 2026 December 2025 Position 51' Rr Savings, Checking, Investments varies varies varies 18,478,818.51 18,558,767.46 (79,948.95) Total HUC Operating Funds 18,478,818.51 18,558,767.46 (79,948.95) Debt Restricted Requirements Debt Restricted Requirements Total Restricted Funds Excess Reserves Less Restrictions, Bond Covenants - sinking fund Bond Covenants -1 year Max. P & 1 Gas 364,000.00 2,072,000.00 2,436,000.00 16,983,547.33 182,000.00 2,072,000.00 2,254,000.00 16,721,090.57 182,000.00 - 182,000.00 262,456.76 1 1 JJJ1 111 1 11 J J Operating Reserve Min 60 days of 2026 Operating Bud. 2,010,874.67 2,010,874.67 - Rate Stabalization Funds $200K-$600K 200,000.00 615,294.19 (415,294.19) PILOT Funds Charter (Formula Only) 596,824.00 596,824.00 Catastrophic Funds Risk Mitigation Amount 200,000.00 200,000.00 Capital Reserves 5 Year CIP (2026-2030 Fleet & Infrastructure Maintenance) 700,000.00 700,000.00 Total Designated Funds 3,707,698.67 4,122,992.86 (415,294.19) Excess Reserves Less Restrictions & Designations, Gas 13,275,848.66 12,598,097.71 677,750.95 YE YE YE YE YTD HUC 2022 2023 2024 2025 2026 AGA Ratio Target Debt to Asset 26.5% 21.0% 15.5% 10.6% 12.4% 35%-50% pp ppppp ryry NNNNNNNNNNNN Current Ratio 4.06 4.61 5.08 5.18 4.29 1.0-3.0 RONA 3.0% 6.2% 9.1% 7% 0.5% 2%-5% >1% Notes/Graphs: ELECTRIC DIVISION Operating Revenue January 2026 CLASS AMOUNT KWH /KWH Street Lights 25.40 466 $0.0545 Electric Residential Service $584,505.79 4,845,450 $0.1206 All Electric Residential Service $41,541.81 380,895 $0.1091 Electric Small General Service $182,272.69 1,553,120 $0.1174 Electric Large General Service $732,332.27 7,781,970 $0.0941 Electric Large Industrial Service $660,531.70 7,620,000 $0.0867 Total $2,201,209.66 22,181,901 $0.0992 Power Adjustment $0.00721 Rate Without Power Adjustment $0.09202 Electric Division Year -to -Date ® 2026 $ Amount ❑ 2025 $ Amount ® 2026 KWH110 ❑ 2025 KWH110 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Residential All Elec. Resid. Small Gen. Srv. Large Gen. Srv. Large Industrial Sales For Resale Total NOTE: This graph includes sales for resale (capacity and energy sales) but excludes street lights and security lights NATURAL GAS DIVISION Operating Revenue January 2026 CLASS AMOUNT MCF /MCF Residential $1,030,501.52 88,881 $11.5942 Commercial $717,868.53 62,539 $11.4787 Large Industrial $35,689.07 2,980 $11.9747 Large Industrial Contracts $1,005,894.31 102,299 $9.8329 Total $2,789,953.43 256,700 $10.8686 Fuel Adjustment $3.41000 Rate Without Fuel Adjustment $7.45855 Natural Gas Division Year -to -Date ❑ 2026 $ Amount ❑ 2025 $ Amount m 2026 MCF ❑ 2025 MCF 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Gas Residential Gas Commercial Large Industrial Large Industrial Total Contracts N N N N N O N N O N N N N N N N Z 6363 O O W- Z Z Z Z Z Z Z Z Z Z m Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z> Z Z Z Z � Z Z Z Z Z Z Z Z Z Z Z Z O O M M N O > O O O O O O N N o o N¢ W N N Q1 W o N Q1 V' N N C1 C1 V O o� o W 7 O o V C1 O W V W V C1 0 0 C C1 - M N a 'SOW C1 M C1 C o� u O W C1 O V' � W o W � u Coco W O M O 0 0 0 0 0 0 i O O O O W W o C1 0 0 0 0 0 0 0� O O O O W o W o 0 o W o 0 o I� O O o N 0 0 Wo V' V' V' M V' V' V' ' N W M O o C1 N o W N C1 O M W C1 O N W N O o I� M O 01 W I� O 01 I� C1 o I� M o F W � 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0, O O O O o 0 0 0 0 0 0 o W o 0 o i C1 W O O ONO C1 O V'O V'00000 V'O V'� W S W oC1 C10 W W OO W V I�OO W OMMI� �Q)� r � N N � WINO W OWOol�001�o CIVOMVI�oV'W000�0WNOC1WOW V'N VIA V'W� I� o' I� r N M V I� C1 I� V � W N M M o N � I� r V W V' M H O C1 W N o O E C1 M O C1 I� M I� N M V' W o I� N W I� V M W MOMI�C1 I� W ooMN V'I��oN��l�o vl�l�01��� W NvV' M N o o ONO W oNl� V' V OOMo C1N C1 W I�C1 V'oM W O W �O�C10o W I��OON V' C1�� V' V' C1 C1 W O MOIL V MO W M W M�I�OCIN MCIM OI�N W OC1NM W V No W C10 W C1 W M N V' V' V' O W C1 N W V' I� N V' O W N M C1 I� oqr W W M V' C1�V' W W V'MMMW WNI� oC1oWNo�WMNOOI�WOCIN WI�WCI��M MWN N IV (O o W �W W o N C1 VOMMQI C1MOW�NV'V'N I�VcO V'o oC10 M�NW v(O� W O O O o 0 C1 O V' O Lq O O O O O V' O q W W o C1 O W W O O V' q I� O O W O M M M V' C1 I� W N W � N I� O W O W O o I� O O r o C1 V' O M V' I� o o M 0 0 0 � O W I� O C1 WNW W N V' N V' W � I� N � � V' M O o�I� O oOW�oo��W MW WI�rWOC1WOMo�o�W WI��oW�C1 C1 V' OMW V' o M C1 I� V V'M C1 W2 C1W OI�M WCIWNV'MW W WOON000W V'I�WOV'O V'�N C1 ISM O N o� V' M N I- O o� o W N M M o N � I� r V W V' M- C1 O W N o V' O- C1 - M C1 W W W C1 N I� M N V O O M o M I� C1 I� WOO M N � W W Ooi r N o OM N ON o o o c o O OM O O oo O ON O o o W �2 0 o C1 O I� N o o V' N M O WOW W N o M W 0 0I� O W r M I� C1 o V' W N o o N o o C1 I� N M C1 C1 V' I� O r M O <M W O W M N C1 C1 V' W N W MOo�NNM N W V'C1 V'N O W CIN V'C1 W NM�C10 W cl �- W C- NMO W ' W o0 W W C1 V'o 'I: C1 V'WMWOOI�OV NWCI��WOI�WoV'o MI�WOWNMV'W WI�W OC1O W N V' C1 V M C1 o W W V C1 N O C1 V C1 V C1 M M o C1 C1 N o M I� M W N O C1 O V' V' W C1 M W o I� C1 C1 I� M N O W C1 V' I� C1 C1 N o V' O C1 W M C1 o I� O N C1 W W o N N W t o W N N W N O O O O O O O O O 000000000 O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O 0 0 0 0 o o 0 000000000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o o 0 O O O O O O O O 000000000 O O O O O O O O O O O O O O O O O O O O O O O O O O O OIO O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O M O o o 0.0 O o O o O O O O O O O O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o o 0 W W W W I� r r r W W W W W W I� W W W W W W W W W W W W W W W I� r r r r r r r r r r W W W W W W W W C1 C1 C1 C1 C1 C1 O N N M V' o N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N M M M M M M a O O O O O O O O O O O O O O O O O v O O O O O O O 000000000 O O O O O O O O O O O O O O O O O O O O O O O O O O O O v N N N N N N N N N N N N N N N N N N Q Q N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N O O Z Q1 Q1 O O W W N N_ O Q1 W I� N M Z Z N N N N N N N N N O N V' W Q1 N N W � o N I� W W N W I� o V' V' V' W I� W W NQIONNNNo V'NNN W I�Q10oo V' W I� W W OM V' W W ONQI QIN NON � V' V' V' V' V' V' M V' o� O M O C100 C1 NC10 C�'Q)Q)Q)C�'Q) C1M C1 C1��OC1�C1 C1��C10� V' V'Q)o V' V'o V'o N c c N C o N N N 0 N 0 0 N N 0 N N N N N N N N N N N N N O O O O O O O O O O O O O O O O O O O O O cc O O O 00 ... 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IIII y � � VVVVVVVVVVVVVVVVVVVVVVVVV VUVUVUVVVVVVVVVVVVVVVVVVVVV � 0 V �I�I�IIIII�,JI I IIII ~ � v Ui I'I IIII o ¢ m � o Y C U o m 0 R Y - ` U n O C) O D C �C)cD� HUTCHINSON UTILITIES COMMISSION 9T, Board Action Form iiiiiiiiiiiiiiiiiiiiiillillillillillillilliillillillillillillilliilliillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliilllI Agenda Item: Review Policies Presenter: Angie Radke Agenda Item Type: Time Requested (Minutes): 5 Review Policies Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: As part of HUC's standard operating procedures, a continual policy review is practiced. This month, the following policies were reviewed and no changes are recommended on these policies at this time: i. Section 2 of Exempt Handbook ii. Section 2 of Non -Exempt Handbook BOARD ACTION REQUESTED: None Fiscal Impact: Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: EXEMPT SECTION 2 — ADMINISTRATION OF PERSONNEL POLICIES The Commission approves personnel policies intending uniform administration of personnel matters of the Utilities. The Commission may supplement, amend and/or rescind the policies to assure that they will remain practical, useful and current. In approving personnel policies, the Commission has made every effort to be as reasonable and practical as possible. Final responsibility for the enforcement of the policies shall rest with the Commission. The Commission however, has delegated to the General Manager the responsibility and authority for the enforcement of all personnel policies. The General Manager, in turn, delegates certain responsibilities and authority to the Staff as deemed advisable in order to carry out the personnel policies. The General Manager, however, remains accountable to the Commission. If the Commission has not clearly delegated its authority in a certain manner, the Commission retains authority to determine the appropriate action. These personnel policies govern all Utilities employees and apply to all cases except where a policy contained herein conflicts with a Union Contract, or other employment contract, or past practice, in which case the Union Contract, or other employment contract, or past practice shall govern. SAVINGS CLAUSE If any provision of this Handbook is declared by proper legislative, administrative or judicial authority to be unlawful, unenforceable or not in accordance with applicable Civil Service rules, or law, all other provisions of this Handbook shall remain in full force and effect for the duration of this Handbook. EQUAL EMPLOYMENT OPPORTUNITY HUC is committed to providing equal opportunity in all areas of employment, including, but not limited to recruitment, hiring, demotion, promotion, transfer, selection, lay-off, disciplinary action, termination, compensation and selection for training. In accordance with Minnesota State Statute 363A, HUC will not discriminate against any employee or job applicant on the basis of race (including traits associated with race, including, but not limited to, hair texture and hair styles such as braids, locs and twists), color, creed, religion, national origin, ancestry, sex, sexual orientation, gender identity, or gender expression, disability, age, marital status, genetic information, status with regard to public assistance, veteran status, familial status, or membership on a local human rights commission. HIRING It is the Commission's policy to hire qualified applicants through internal employee promotion and external recruitment if appropriate. The General Manager has the authority to hire all employees and must approve all hiring recommendations, Final interviews for the General Manager position will be conducted by the Commissioner Board with the assistance of the Administrative/HR Coordinator. Final interviews for Manager positions will be conducted by the General Manager, and Administrative/HR Coordinator. PROBATIONARY PERIOD UPON HIRING A newly hired exempt employee shall serve a six (6) month probationary period during which the employee shall have the opportunity to demonstrate abilities and work performance. During this qualifying period, the Manager or Supervisor should discuss with the employee, the employee's progress in becoming fully acquainted with the job and co-workers. The General Manager can terminate a probationary employee's employment without notice and without cause at any time during the probationary period. The General Manager may choose to extend an employee's probation period up to a maximum of three months. New full-time employees are required to sign the acknowledgement in Appendix B when they begin employment. TEMPORARY EMPLOYEES Temporary employees are required to sign the acknowledgement in Appendix C when they begin employment. The General Manager must approve employment of a temporary worker for longer than 14 consecutive weeks. The responsible Manager must inform the General Manager of the desire to employ a temporary worker longer than 14 weeks. PROMOTIONS AND TRANSFERS HUC encourages individual advancement by providing opportunities for promotion and transfer as positions become available. Job vacancies shall be posted ten (10) working days. Employees desiring to be considered for the position must provide a letter of interest to the appropriate staff person by the deadline stated on the posting. All promoted and transferred employees shall serve a six (6) month trial period during which time the promoted or transferred employee may be placed back in the employee's previous job classification if a position is available and at the sole discretion of the Employer, without loss of seniority. We encourage employees to discuss their career plans and goals with their Manager. LAYOFFS HUC retains its right to eliminate positions within the organization if the Commission deems it appropriate to do so. If a layoff occurs, RUC will provide four weeks' notice to affected employees. Layoffs will be based on skill, knowledge, utility needs and also employee's seniority. VOLUNTARY LEAVE OF ABSENCE HUC may request employees to voluntarily take a leave of absence without pay for a specified period of time. EMPLOYMENT OF RELATIVES No applicant or employee shall receive preferential consideration because of his/her relationship to an HUC employee, a Commission member, a Hutchinson City Council member or other City employees and officials. Any HUC employee who extends such preferential treatment is subject to discipline. No member of a department head's immediate family shall be a direct report to the department head. No member of the General Manager's immediate family shall be a direct report to the General Manager. A former Commission member may not be hired as an employee of HUC for two years after the end of the Commissioner's term in office. MEMBERSHIP/DUES/CONVENTIONS Employees are encouraged to join and participate in professional and technical associations, which are expected to enhance job performance. HUC will pay the association dues if membership relates directly to an employee's job with HUC. The appropriate Staff Personnel must approve payment of membership dues. The General Manager must approve attendance at association meetings, conferences, and/or conventions. HUC will pay the attendance fee for pre -approved meetings and expenses incurred. DATA PRACTICES ADVISORY Employee records are maintained by Administrative/HR Coordinator. Personnel data is retained in personnel files, finance files, and benefit/medical files. Information is used to administer employee salary and benefit programs, process payroll, complete state and federal reports, document employee performance, etc. Employees have the right to know what data is retained, where it is kept, and how it is used. All employee data will be received, retained, and disseminated according to the Minnesota Government Data Practices Act. Media Requests: All HUC employees have a responsibility to help communicate accurate and timely information to the public in a professional manner. Requests for private data or information outside of the scope of an individual's job duties should be routed to the appropriate department. Any employee who identifies a mistake in reporting should bring the error to the General Manager or other appropriate staff. Regardless of whether the communication is in the employee's official utilities role or in a personal capacity, employees must comply with all laws related to trademark, copyright, software use, etc. With the exception of routine events and basic information that is readily available to the public, all requests for interviews or information from the media are to be routed through the General Manager. No HUC employee is authorized to speak on behalf of HUC without prior authorization from the General Manager or his designee. Media requests include anything intended to be published or viewable to others in some form such as television, radio, newspapers, newsletters, social media sites, and web sites. When responding to media requests, employees should follow these steps: l . If the request is for routine or public information (such as a meeting time or agenda) provide the information and notify the General Manager of the request. 2. If the request is regarding information about HUC personnel, potential litigation, controversial issues, an opinion on a HUC matter, or if an employee is unsure if the request is a "routine" question, forward the request to the General Manager. An appropriate response would be "I'm sorry, I don't have the full information regarding that issue. Let me take some basic information and submit your request to the appropriate person who will get back to you as soon as he/she can." Then ask the media representative's name, questions, deadline and contact information. All news releases concerning HUC personnel will be the responsibility of the General Manager. When/if the General Manager authorizes a staff person to communicate on behalf of HUC in interviews, publications, news releases, on social media sites, and related communications, employees must: ✓ Identify themselves as representing HUC. Account names on social media sites must be clearly connected to HUC and approved by the General Manager. ✓ All information must be respectful, professional and truthful. Corrections must be issued when needed. ✓ Personal opinions generally don't belong in official statements. One exception is communications related to promoting a service. ✓ Employees need to notify the General Manager if they will be using their personal technology (cell phones, home computer, cameras, etc.) for HUC business. Employees should be aware that the data transmitted or stored may be subject to the Data Practices Act. It is important for HUC employees to remember that the personal communications of employees may reflect on HUC, especially if employees are commenting on HUC business. The following guidelines apply to personal communications including various forms such as social media (Facebook, Twitter, blogs, YouTube, etc.), letters to the editor of newspapers, and personal endorsements. ✓ Remember that what you write is public, and will be so for a long time. It may also be spread to large audiences. Use common sense when using email or social media sites. It is a good idea to refrain from sending or posting information that you would not want your boss or other employees to read, or that you would be embarrassed to see in the newspaper. ✓ HUC expects its employees to be truthful, courteous and respectful towards supervisors, co-workers, citizens, customers and other persons associated with HUC. Do not engage in name-calling or personal attacks. ✓ If you publicize something related to HUC business, identify yourself and use a disclaimer such as, "I am an employee of HUC. However, these are my own opinions and do not represent those of HUC." ✓ HUC resources, working time, or official positions cannot be used for personal profit or business interests, or to participate in personal political activity. ✓ Personal social media account name or email names should not be tied to HUC. COMPLAINT/GRIEVANCE PROCEDURE It is the Commission's policy to provide an equitable process which employees may use to advance complaints and grievances. An employee may grieve any alleged violation of a written or verbal policy or procedure, disciplinary action other than an oral reprimand, or unsafe practice. Prior to initiating a grievance, an employee must discuss the complaint with the immediate Supervisor. If the complaint cannot be resolved informally through such discussion with the Manager or Supervisor, the employee may choose to file a written grievance. The grievance must be filed with the Administrative/HR Coordinator within ten (10) working days after the incident - giving rise to the grievance. The Administrative/HR Coordinator shall attempt to resolve the grievance and shall provide the employee a written response no later than five (5) working days following receipt of the grievance. If the employee is dissatisfied with the Administrative/HR Coordinator's response, the employee may file the grievance with the General Manager within five (5) days of the Administrative/HR Coordinator's response. The General Manager shall attempt to resolve the complaint or grievance and shall provide the employee a written response not later than five (5) days following the receipt of the complaint. If dissatisfied with the General Manager's response, the employee may request a hearing on the grievance before the Hutchinson Utilities Commission. The Hutchinson Utilities Commission may choose to appoint an independent hearing officer to hear the grievance. An employee presenting a complaint or grievance shall not be subject to retaliation or reprisal. EMPLOYEE CONDUCT All HUC employees are expected to conduct themselves in a manner that creates a work environment enabling employees to work effectively and to promote positive customer relations. HUC employees are required to adhere to the following standards of conduct while on the job. • To behave in a courteous, business -like manner and to comply with HUC policies and work rules. • Refrain from any and all action, which may be detrimental to the safety or work of other employees or to the goals of HUC. • To communicate openly and honestly with management, other employees, and the public. • To share responsibility for personal development and growth. • To continually strive for excellence in work product and habits. DISCIPLINE In general, HUC employees shall be subject to disciplinary action for failing to fulfill their duties and responsibilities, including observance of work rules approved by the Commission. It is the policy of the Commission to administer discipline fairly, without discrimination, and for just cause. The employee may use the grievance procedure with respect to any disciplinary action believed to be unjust or disproportionate to the alleged offense. The General Manager, or Manager shall investigate any allegation on which disciplinary action might be based before disciplinary action is taken. The Commission supports the concept of progressive discipline but expressly reserves the right to impose various levels of discipline depending on the nature of the offense. Staff Personnel may impose oral and written reprimands. Only the General Manager may impose a suspension without pay, letter in lieu of suspension, demotion, or discharge. Notices of oral reprimand, written reprimand, suspension without pay, demotion, or discharge will be documented in written form and will state the reason(s) for the action taken. The employee shall be provided with a copy of each such notice and a copy shall be retained in the employee's personnel file. The following are examples of disciplinary action but do not constitute an exclusive list of possibilities and may be taken in any order or not used at all. These examples and their descriptions are not intended to create a contract or obligation on management's part. A Oral reprimand. An oral notice advising an employee of inappropriate conduct and expected corrective action. B Written reprimand. A written notice advising an employee of inappropriate conduct. A written reprimand should describe in detail the behavior to be corrected, describe past actions taken by the supervisor to correct the problem, give direction and orders for the future including timetables and goals for improvement when appropriate, and specify consequences of repeating the inappropriate behavior. The employee will be given a copy of the reprimand and sign the original acknowledging receipt of the reprimand. The signature of the employee does not signify agreement with the reprimand. The reprimand will be placed in the employee's personnel file. C Prior to the suspension or as soon after as possible, the employee will be notified in writing of the reason for the suspension and its length. There are two forms of suspension: suspension as discipline and suspension pending investigation. An employee receiving a suspension as discipline may not be paid, may not accrue vacation, holiday or sick leave benefits during the suspension, and may not use paid time while suspended. An employee suspended pending investigation of allegations will have a copy of each written statement placed in the personnel file and will be paid during the investigation. If the allegations prove false, the statement will be removed. An employee placed on investigatory suspension should be notified as quickly as reasonably possible of the action taken regarding employment. D Demotion. Placement of an employee in a lower level position. E Discharge. The General Manager may discharge any employee, but if the employee has completed the probationary period, a dismissal will be made only for just cause. A dismissed employee will be notified by the previous posting of a summary of Minnesota Statute Sections 181.931 to 181.935 or by furnishing the terminated employee a copy of those statutes at termination that the employee has a right to make a written request for HUC reason for termination. If requested, HUC will provide reasons, in writing, within five working days. This notice will also contain a statement indicating that the employee may respond to the charges both orally and in writing and may appear personally before the official having authority to make or recommend the final decision. An adequate reason or "just cause" for a disciplinary action will include, but not be limited to, evidence of any of the following: A Incompetence or inefficiency in the performance of duties. B Negligence or carelessness in the performance of duty, such as in the handling or control of municipal property, equipment, or funds and failure to observe safety rules and regulations. C Offensive or inappropriate conduct or language toward Utilities employees or other persons. D Failure to obey any lawful and reasonable direction given by an employee's supervisor or the appointing authority. E Acceptance of a fee, gift, or other valuable item or benefit in the course of, or as a result of, the employee's work. This limitation is not intended to prohibit the acceptance of articles of negligible value, which are distributed generally, or to prohibit employees from accepting social courtesies, which promote good public relations. This prohibition is intended to prevent or discourage relationships, which may be construed as evidence of favoritism, coercion, unfair advantage, or collusion. Employees may accept food and refreshments in such instances as a luncheon, dinner meeting, or inspection tour in conjunction with HUC business. F Conviction of a crime, which affects or relates to the performance of assigned duties. G Using, threatening or attempting to use, political influence or unethical pressure to influence a decision on a promotion, transfer, leave of absence, increased compensation, other benefit, or any other matter in which the employee has an interest. Unethical pressure includes offers of gifts or other special benefits, coercion, collusion, threats of blackmail, requests for favoritism, and use of unfair advantage. H Absence from work without prior approval in accordance with this policy. I During assigned work schedules, (1) consuming or being under the influence of alcoholic beverages, (2) having the odor of an alcoholic beverage on the breath, or (3) consuming or being under the influence of a controlled substance, other than one prescribed by a physician, which does not impair the ability to perform assigned duties. J Tardiness or abuse of sick leave privileges. K Theft of public property, pilferage, or other unauthorized use or taking of property. L Sexual harassment. M Discrimination against or harassment of any HUC employee at any time, or any other person during work hours, based on race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, veterans status, disability, or age. N Performance of personal or other non-HUC work related matters during work hours. O Violation of the HUC's equal employment plan. P Engaging in a conflict of interest or performing public duties in a situation where the employee has a conflict of interest. Q Violations of the provisions of this Handbook and/or policies. R Horseplay, loafing or sleeping on the job. S Proven dishonesty in the performance of duties. T Acts or threats of physical violence directed toward HUC employees. U Unauthorized use or release of confidential, sensitive or privileged information. V As a supervisor, knowingly permitting another employee to violate this policy or other work rules. W Acting or failing to act in a manner not otherwise specified that tends to lower discipline or morale among HUC employees, brings or tends to bring discredit to the HUC, its employees, or that adversely affects the prompt, courteous and efficient provisions of public services. Freedom of speech protected by the First Amendment shall not be a basis for discipline. X Unauthorized possession or use of firearms or hazardous materials on HUC time or property. Y Refusal, during working hours, to submit to a Breathalyzer or other drug test required by law. CONFLICT OF INTEREST Employees must notify their Manager of any direct or indirect financial interest they have in any contract with HUC, any interest they have in a contractor supplying HUC, or any such interest they may have with any entity competing with HUC, and all such notifications shall be forwarded to the General Manager. Any employee with such a financial interest may not work on any HUC project or make any decision concerning an HUC project involving the employee's outside financial interest, unless the interest has been disclosed, and deemed acceptable by HUC management. INTELLECTUAL PROPERTY Assignment: All inventions that are: (a) developed using equipment, supplies, facilities or trade secrets of HUC; or (b) result from work performed by an employee of HUC; or (c) relate to the HUC's current or anticipated business and business models, will be the HUC's sole and exclusive property and are hereby assigned by the employee to HUC. If necessary, the employee will assist HUC in the prosecution and issuance of patents, copyrights and other proprietary rights necessary to protect inventions that are developed. Disclosure: While employed by HUC, the employee will promptly inform HUC of the full details of all inventions, discoveries, improvements and innovations, whether or not patentable, copyrightable or otherwise protectable, that the employee conceives, completes or reduces to practice (whether jointly or with others) and which: (a) relate to HUC's present or prospective business, or actual or anticipated business and business models; or (b) result from any work that the employee does using any equipment, facilities, materials, trade secrets or personnel of HUC; or (c) result from, or are suggested by, any work that the employee may do for HUC. The employee will inform HUC within 30 days of the adoption of this policy of all previous inventions, improvements or discoveries actually made or copyright registration or patent applications filed prior to the incorporation of this policy. Inventions, improvements or discoveries not made known to HUC within 30 days of the adoption of this policy shall be deemed to have been made while this policy was in effect. Confidentiality: From time to time, HUC may develop, and employees may have exposure to, formulas, programs, devices, techniques or processes that have been designated by HUC as confidential or proprietary information of HUC. The employee shall not directly or indirectly disclose, furnish, or make accessible to any person or other entity any confidential or proprietary information of HUC that the employee developed or obtained while the employee was employed by HUC. As required by Minnesota law, this policy does not apply to an invention for which no equipment, supplies, facility or trade secret information of HUC was used and which was developed entirely on the employee's own time and (1) does not relate (a) directly to the business of HUC or (b) to HUC's actual or demonstrably anticipated research or development, or (2) which does not result from any work performed by the employee for HUC. OTHER EMPLOYMENT An employee's position at HUC must take precedence over any other job an employee holds. Employees must inform their Manager of any work they perform for profit outside of HUC's position to ensure there is no conflict of interest between the HUC j ob and the outside employment, and all such notifications shall be forwarded to the General Manager. Also, employees are expected to be mentally alert and physically able to perform their Utility jobs. Employees may not work on their outside employment while on duty with HUC nor may any HUC property or equipment be used to conduct such business at any time. LICENSE REQUIREMENTS FOR UTILITY VEHICLE OPERATION Prior to hire date as an WC employee, the candidate's driving record is evaluated and must be approved. This is a condition of employment if operation of a vehicle is an essential part of an employee's job. An employee whose job requires operating a motor vehicle must possess a valid Minnesota Driver's License with necessary endorsements in order to conduct WC business. If an employee's driver's license is suspended, revoked, or cancelled during employment with HUC, the employee must immediately inform the employee's Manager or Supervisor who must inform the General Manager. The General Manager shall take appropriate action up to and including discharge. SMOKING The HUC observes and supports the Minnesota Clean Indoor Air Act. All HUC buildings and vehicles, in their entirety, shall be designated as tobacco free, meaning that smoking in any form (through the use of tobacco products (pipes, cigars and cigarettes) or "vaping" with e-cigarettes is prohibited while in a HUC facility or vehicle. Smoking of any kind, including pipes, cigars, cigarettes, vaping with e-cigarettes and the use of chewing tobacco is prohibited for employees while on duty. Employees 18 and over are allowed to smoke only during their breaks and lunch, and only in areas designated for that purpose. Per City of Hutchinson ordinance, smoking is prohibited in public places and places of work and within 15 feet of entrances, exists, open windows and ventilation intakes of public places and places of work. VIOLENCE IN THE WORKPLACE HUC strives to ensure a healthy and productive working environment. In that regard, safety and security are of the utmost importance. HUC will enforce zero tolerance for any acts of physical assault or threats of bodily harm in the performance of work duties, wherever those duties are performed. Policy on Violence HUC views aggressive and/or violent behavior as disruptive and contrary to the development and maintenance of a safe, productive and supportive work environment. Such behavior is not tolerated. Employees who exhibit such behavior will be held accountable under the policy and work rules, as well as local, state, and federal law. All threats and acts of aggression or violent behavior should be taken seriously and addressed immediately. Such threats or acts include, but are not limited to: • Harming or threatening to harm any employee or visitor; • Damaging or threatening to damage property or the property of any employee or visitor; • Unlawfully possessing a firearm, ammunition, weapon or incendiary device on HUC property, vehicles, construction sites or while attending HUC business -related activities off site; • Engaging in stalking behavior of any employee. Accountability All personnel are responsible for notifying their immediate supervisor, or in the absence of their supervisor, another member of the management staff of any threats that they have witnessed, received, or have been told that another person has witnessed or received. Even without an actual threat, personnel should also report any behavior they have witnessed which they regard as threatening or violent, when that behavior is job related or might be carried out on a public site, or is connected to municipal employment. Employees are responsible for making this report regardless of the relationship between the aggressor and the individual to whom the threat or threatening behavior was directed. Directive Any person who makes substantial threats, exhibits threatening behavior, or engages in violent acts against employees, visitors, guests, or other individuals while on HUC property shall be removed from the premises as quickly as safety permits and shall remain off HUC premises pending the outcome of an investigation. Law enforcement should be utilized to remove individuals who are perceived as a threat. HUC will initiate an appropriate response which may include, but is not limited to, suspension and/or termination of any business relationship, reassignment of job duties, suspension or termination of employment and/or criminal prosecution of the person or persons involved. Employees and supervisors should work together to identify and report situations or locations where there is a potential for physical assault or threat of bodily harm. Employees should record specific incidents, behaviors or conversations that may indicate a potential for violence. Documentation should be forwarded to their Manager. In instances where their supervisor is the source of potential violence, documentation should be forwarded to the next level of management with a copy to Human Resources. Supervisors must carefully review and assess information provided by employees or other sources. Appropriate precautions should be taken based on the specific situation. For example: If a problem situation or location is identified, it should be communicated to other employees who are likely to become involved in the situation or come in contact with the location. Individuals applying for a restraining order must provide their supervisor and Human Resources with a copy of the petition used to seek the order, and a copy of any temporary and permanent protective restraining order which is subsequently granted. Human Resources will monitor and evaluate the violence reports on an ongoing basis and will submit program reports to the General Manager when requested. OFFENSIVE BEHAVIOR/SEXUAL HARASSMENT It is HUC's policy to maintain a work environment free from offensive behavior and sexual harassment. Offensive behavior may include such actions as: rudeness, angry outbursts, inappropriate humor, vulgar obscenities, name calling, disrespectful language, or any other behavior regarded as offensive to a reasonable person. A violation of this policy is subject to discipline up to and including discharge. One specific kind of illegal behavior is sexual harassment. Sexual harassment includes unwelcome sexual advances, requests for sexual favors, sexually motivated physical conduct or other verbal or physical conduct or communication of a sexual nature when: 1. submission to that conduct or communication is made a term or condition of obtaining employment; or 2. submission to or rejection of that conduct or communication by an individual is used as a factor in a decision affecting that individual's employment; or 3. that conduct or communication has the purpose or effect of substantially interfering with an individual's employment or creating an intimidating, hostile, or offensive employment environment. Examples of conduct that violate this policy include, but are not limited to: • Repeated offensive sexual flirtations, unwelcome advances, propositions or invitations; or • Unwelcome repeated comments, jokes, displays, or suggestions of a sexual nature; or • Objectionable physical contact, including touching • In summary, sexual harassment is the unwanted, unwelcome and repeated action of an individual against another individual, using sexual overtones as a means of creating stress. Any employee who feels he/she is being subjected to offensive or discriminatory behavior of any kind or employees who are aware of such behavior is/are encouraged to express their objection to the behavior and should also immediately report the behavior to their immediate Supervisor, Department Manager, the Administrative/HR Coordinator, or the General Manager. In addition, the employee may also file a complaint with the Minnesota Department of Human Rights and the EEOC. A person must file a complaint with the Minnesota Department of Human Rights within one year of the incident and file a complaint with the EEOC within 300 days of the incident. Staff Personnel who receives an offensive behavior or discrimination complaint shall inform the General Manager and Human Resources of the complaint as soon as possible. The General Manager must ensure an appropriate and prompt investigation of the complaint. If the investigation substantiates the complaint, HUC will take appropriate corrective action. Strict confidentiality is not possible in all cases of sexual harassment as the accused has the right to answer charges made against them; particularly if discipline is a possible outcome. Reasonable efforts will be made to respect the confidentiality of the individuals involved, to the extent possible. Any employee who makes a false complaint or provides false information during an investigation may be subject to disciplinary action, up to and including termination. Retaliation against any person who files a complaint or participates in an investigation is expressly prohibited. Retaliation includes, but is not limited to, any form of intimidation, reprisal or harassment. Any individual who retaliates against a person who testifies, assists, or participates in an investigation may be subject to disciplinary action up to and including termination. RETIREMENT Any employee who elects to retire shall give the Employer sixty (60) days' written notice of date that employee intends to retire. RESIGNATION Employees leaving employment with HUC in good standing will be paid any accrued unused vacation. To leave employment in good standing, an employee should provide written notice of resignation to Supervisor or Manager at least 10 working days prior to the resignation effective date. The General Manager may waive this requirement for good cause. A terminating employee must also return all HUC property, and equipment including keys, security devices, clothing and small hand tools provided by HUC. SOLICITATION ON UTILITY PREMISES Salespersons offering merchandise not related to HUC business are prohibited from soliciting during normal business hours. Employees are discouraged from soliciting other employees. Brochures and/or pamphlets are allowed to be put out in the breakroom for voluntary participation. Employees shall not provide another employee's contact information to a salesperson without the employee's consent. EMPLOYEE GIFTS Employees are not required to make a contribution for a gift or grant a favor for another employee. FLOWERS In the event of the death of a full-time or part-time employee or employee's immediate family, flowers/plant will be sent at HUC expense without delay to the appropriate funeral home. Information needed: Funeral Home Address Date to Send Flowers Similar consideration may be given, at the discretion of the General Manager, or Managers, for retirees, consultants, Commission members or others who provide significant service to HUC. PETTY CASH Petry cash funds are kept with the Accountant. The petty cash fund will be used to reimburse payment up to $50.00. Any expenditure over $50.00 will be reimbursed by check. Itemized receipts must be attached to a completed petty cash slip whenever possible. An employee may obtain an advance of petty cash by completing a petty cash slip and reconciling the advance with the actual amount as soon as possible. Non -Exempt SECTION 2 — ADMINISTRATION OF PERSONNEL POLICIES The Commission approves personnel policies intending uniform administration of personnel matters of the Utilities. The Commission may supplement, amend and/or rescind the policies to assure that they will remain practical, useful and current. In approving personnel policies, the Commission has made every effort to be as reasonable and practical as possible. Final responsibility for the enforcement of the policies shall rest with the Commission. The Commission however, has delegated to the General Manager the responsibility and authority for the enforcement of all personnel policies. The General Manager, in turn, delegates certain responsibilities and authority to the Staff as deemed advisable in order to carry out the personnel policies. The General Manager, however, remains accountable to the Commission. If the Commission has not clearly delegated its authority in a certain manner, the Commission retains authority to determine the appropriate action. These personnel policies govern all Utilities employees and apply to all cases except where a policy contained herein conflicts with a Union Contract, or other employment contract, or past practice, in which case the Union Contract, or other employment contract, or past practice, shall govern. SAVINGS CLAUSE If any provision of this Handbook is declared by proper legislative, administrative or judicial authority to be unlawful, unenforceable or not in accordance with applicable Civil Service rules, or law, all other provisions of this Handbook shall remain in full force and effect for the duration of this Handbook. EQUAL EMPLOYMENT OPPORTUNITY HUC is committed to providing equal opportunity in all areas of employment, including, but not limited to recruitment, hiring, demotion, promotion, transfer, selection, lay-off, disciplinary action, termination, compensation and selection for training. In accordance with Minnesota State Statute 363A, HUC will not discriminate against any employee or job applicant on the basis of race (including traits associated with race, including but not limited to, hair texture and hair styles such as braids, locs and twists), color, creed, religion, national origin, ancestry, sex, sexual orientation, gender identity, or gender expression, disability, age, marital status, genetic information, status with regard to public assistance, veteran status, familial status, or membership on a local human rights commission. HIRING It is the Commission's policy to hire qualified applicants through internal employee promotion and external recruitment if appropriate. The General Manager has the authority to hire all employees and must approve all hiring recommendations, Final interviews for the General Manager position will be conducted by the Commissioner Board with the assistance of the Administrative/HR Coordinator. Final interviews for Manager positions will be conducted by the General Manager, and Administrative/HR Coordinator. PROBATIONARY PERIOD UPON HIRING A newly hired non-exempt employee shall serve a six (6) month probationary period during which the employee shall have the opportunity to demonstrate abilities and work performance. During this qualifying period, the Manager or Supervisor should discuss with the employee, the employee's progress in becoming fully acquainted with the job and co-workers. The General Manager can terminate a probationary employee's employment without notice and without cause at any time during the probationary period. The General Manager may choose to extend an employee's probation period up to a maximum of three months. New full-time employees are required to sign the acknowledgement in Appendix B when they begin employment. TEMPORARY EMPLOYEES Temporary employees are required to sign the acknowledgement in Appendix C when they begin employment. The General Manager must approve employment of a temporary worker for longer than 14 consecutive weeks. The responsible Manager must inform the General Manager of the desire to employ a temporary worker longer than 14 weeks. PROMOTIONS AND TRANSFERS HUC encourages individual advancement by providing opportunities for promotion and transfer as positions become available. Job vacancies shall be posted ten (10) working days. Employees desiring to be considered for the position must provide a letter of interest to the appropriate staff person by the deadline stated on the posting. All promoted and transferred employees shall serve a six (6) month trial period during which time the promoted or transferred employee may be placed back in the employee's previous job classification if a position is available and at the sole discretion of the Employer, without loss of seniority. We encourage employees to discuss their career plans and goals with their Manager. LAYOFFS HUC retains its right to eliminate positions within the organization if the Commission deems it appropriate to do so. If a layoff occurs, HUC will provide four weeks' notice to affected employees. Layoffs will be based on the Utility's skill and knowledge needs and also employee's seniority. VOLUNTARY LEAVE OF ABSENCE HUC may request employees to voluntarily take a leave of absence without pay for a specified period of time. EMPLOYMENT OF RELATIVES No applicant or employee shall receive preferential consideration because of his/her relationship to an HUC employee, a Commission member, a Hutchinson City Council member or other City employees and officials. Any HUC employee who extends such preferential treatment is subject to discipline. No member of a department head's immediate family shall be a direct report to the department head. No member of the General Manager's immediate family shall be a direct report to the General Manager. A former Commission member may not be hired as an employee of HUC for two years after the end of the Commissioner's term in office. DATA PRACTICES ADVISORY Employee records are maintained by Administrative/HR Coordinator. Personnel data is retained in personnel files, finance files, and benefit/medical files. Information is used to administer employee salary and benefit programs, process payroll, complete state and federal reports, document employee performance, etc. Employees have the right to know what data is retained, where it is kept, and how it is used. All employee data will be received, retained, and disseminated according to the Minnesota Government Data Practices Act. Media Requests: All HUC employees have a responsibility to help communicate accurate and timely information to the public in a professional manner. Requests for private data or information outside of the scope of an individual's job duties should be routed to the appropriate department. Any employee who identifies a mistake in reporting should bring the error to the General Manager or other appropriate staff. Regardless of whether the communication is in the employee's official utilities role or in a personal capacity, employees must comply with all laws related to trademark, copyright, software use, etc. With the exception of routine events and basic information that is readily available to the public, all requests for interviews or information from the media are to be routed through the General Manager. No HUC employee is authorized to speak on behalf of HUC without prior authorization from the General Manager or his designee. Media requests include anything intended to be published or viewable to others in some form such as television, radio, newspapers, newsletters, social media sites, and web sites. When responding to media requests, employees should follow these steps: 3. If the request is for routine or public information (such as a meeting time or agenda) provide the information and notify the General Manager of the request. 4. If the request is regarding information about HUC personnel, potential litigation, controversial issues, an opinion on a HUC matter, or if an employee is unsure if the request is a "routine" question, forward the request to the General Manager. An appropriate response would be "I'm sorry, I don't have the full information regarding that issue. Let me take some basic information and submit your request to the appropriate person who will get back to you as soon as he/she can." Then ask the media representative's name, questions, deadline and contact information. All news releases concerning HUC personnel will be the responsibility of the General Manager. When/if the General Manager authorizes a staff person to communicate on behalf of HUC in interviews, publications, news releases, on social media sites, and related communications, employees must: ✓ Identify themselves as representing HUC. Account names on social media sites must be clearly connected to HUC and approved by the General Manager. ✓ All information must be respectful, professional and truthful. Corrections must be issued when needed. ✓ Personal opinions generally don't belong in official statements. One exception is communications related to promoting a service. ✓ Employees need to notify the General Manager if they will be using their personal technology (cell phones, home computer, cameras, etc.) for HUC business. Employees should be aware that the data transmitted or stored may be subject to the Data Practices Act. It is important for HUC employees to remember that the personal communications of employees may reflect on HUC, especially if employees are commenting on HUC business. The following guidelines apply to personal communications including various forms such as social media (Facebook, Twitter, blogs, YouTube, etc.), letters to the editor of newspapers, and personal endorsements. ✓ Remember that what you write is public, and will be so for a long time. It may also be spread to large audiences. Use common sense when using email or social media sites. It is a good idea to refrain from sending or posting information that you would not want your boss or other employees to read, or that you would be embarrassed to see in the newspaper. ✓ HUC expects its employees to be truthful, courteous and respectful towards supervisors, co-workers, citizens, customers and other persons associated with HUC. Do not engage in name-calling or personal attacks. ✓ If you publicize something related to HUC business, identify yourself and use a disclaimer such as, "I am an employee of HUC. However, these are my own opinions and do not represent those of HUC." ✓ HUC resources, working time, or official positions cannot be used for personal profit or business interests, or to participate in personal political activity. ✓ Personal social media account name or email names should not be tied to HUC. COMPLAINT/GRIEVANCE PROCEDURE See Union Contract. EMPLOYEE CONDUCT All HUC employees are expected to conduct themselves in a manner that creates a work environment enabling employees to work effectively and to promote positive customer relations. HUC employees are required to adhere to the following standards of conduct while on the job. • To behave in a courteous, business -like manner and to comply with HUC policies and work rules. • Refrain from any and all action, which may be detrimental to the safety or work of other employees or to the goals of HUC. • To communicate openly and honestly with management, other employees, and the public. • To share responsibility for personal development and growth. • To continually strive for excellence in work product and habits. DISCIPLINE In general, HUC employees shall be subject to disciplinary action for failing to fulfill their duties and responsibilities, including observance of work rules approved by the Commission. It is the policy of the Commission to administer discipline fairly, without discrimination, and for just cause. The employee may use the grievance procedure with respect to any disciplinary action believed to be unjust or disproportionate to the alleged offense. The General Manager, or Manager shall investigate any allegation on which disciplinary action might be based before disciplinary action is taken. The Commission supports the concept of progressive discipline but expressly reserves the right to impose various levels of discipline depending on the nature of the offense. Staff Personnel may impose oral and written reprimands, and may send an employee home for the remainder of a shift without pay. Only the General Manager may impose a suspension without pay, letter in lieu of suspension, demotion, or discharge. Notices of oral reprimand, written reprimand, suspension without pay, demotion, or discharge will be documented in written form and will state the reason(s) for the action taken. The employee shall be provided with a copy of each such notice and a copy shall be retained in the employee's personnel file. The following are examples of disciplinary action but do not constitute an exclusive list of possibilities and may be taken in any order or not used at all. These examples and their descriptions are not intended to create a contract or obligation on management's part. A Oral reprimand. An oral notice advising an employee of inappropriate conduct and expected corrective action. B Written reprimand. A written notice advising an employee of inappropriate conduct. A written reprimand should describe in detail the behavior to be corrected, describe past actions taken by the supervisor to correct the problem, give direction and orders for the future including timetables and goals for improvement when appropriate, and specify consequences of repeating the inappropriate behavior. The employee will be given a copy of the reprimand and sign the original acknowledging receipt of the reprimand. The signature of the employee does not signify agreement with the reprimand. The reprimand will be placed in the employee's personnel file. C Prior to the suspension or as soon after as possible, the employee will be notified in writing of the reason for the suspension and its length. There are two forms of suspension: suspension as discipline and suspension pending investigation. An employee receiving a suspension as discipline may not be paid, may not accrue vacation, holiday or sick leave benefits during the suspension, and may not use paid time while suspended. An employee suspended pending investigation of allegations will have a copy of each written statement placed in the personnel file and will be paid during the investigation. If the allegations prove false, the statement will be removed. An employee placed on investigatory suspension should be notified as quickly as reasonably possible of the action taken regarding employment. D Demotion. Placement of an employee in a lower level position. E Discharge. The General Manager may discharge any employee, but if the employee has completed the probationary period, a dismissal will be made only for just cause. A dismissed employee will be notified by the previous posting of a summary of Minnesota Statute Sections 181.931 to 181.935 or by furnishing the terminated employee a copy of those statutes at termination that the employee has a right to make a written request for HUC reason for termination. If requested, HUC will provide reasons, in writing, within five working days. This notice will also contain a statement indicating that the employee may respond to the charges both orally and in writing and may appear personally before the official having authority to make or recommend the final decision. An adequate reason or "just cause" for a disciplinary action will include, but not be limited to, evidence of any of the following: A Incompetence or inefficiency in the performance of duties. B Negligence or carelessness in the performance of duty, such as in the handling or control of municipal property, equipment, or funds and failure to observe safety rules and regulations. C Offensive or inappropriate conduct or language toward Utilities employees or other persons. D Failure to obey any lawful and reasonable direction given by an employee's supervisor or the appointing authority. E Acceptance of a fee, gift, or other valuable item or benefit in the course of, or as a result of, the employee's work. This limitation is not intended to prohibit the acceptance of articles of negligible value, which are distributed generally, or to prohibit employees from accepting social courtesies, which promote good public relations. This prohibition is intended to prevent or discourage relationships, which may be construed as evidence of favoritism, coercion, unfair advantage, or collusion. Employees may accept food and refreshments in such instances as a luncheon, dinner meeting, or inspection tour in conjunction with HUC business. F Conviction of a crime, which affects or relates to the performance of assigned duties. G Using, threatening or attempting to use, political influence or unethical pressure to influence a decision on a promotion, transfer, leave of absence, increased compensation, other benefit, or any other matter in which the employee has an interest. Unethical pressure includes offers of gifts or other special benefits, coercion, collusion, threats of blackmail, requests for favoritism, and use of unfair advantage. H Absence from work without prior approval in accordance with this policy. I During assigned work schedules, (1) consuming or being under the influence of alcoholic beverages, (2) having the odor of an alcoholic beverage on the breath, or (3) consuming or being under the influence of a controlled substance, other than one prescribed by a physician, which does not impair the ability to perform assigned duties. J Tardiness or abuse of sick leave privileges. K Theft of public property, pilferage, or other unauthorized use or taking of property. L Sexual harassment. M Discrimination against or harassment of any HUC employee at any time, or any other person during work hours, based on race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, veterans status, disability, or age. N Performance of personal or other non-HUC work related matters during work hours. O Violation of the HUC's equal employment plan. P Engaging in a conflict of interest or performing public duties in a situation where the employee has a conflict of interest. Q Violations of the provisions of this Handbook and/or policies. R Horseplay, loafing or sleeping on the job. S Proven dishonesty in the performance of duties. T Acts or threats of physical violence directed toward HUC employees. U Unauthorized use or release of confidential, sensitive or privileged information. V As a supervisor, knowingly permitting another employee to violate this policy or other work rules. W Acting or failing to act in a manner not otherwise specified that tends to lower discipline or morale among HUC employees, brings or tends to bring discredit to the HUC, its employees, or that adversely affects the prompt, courteous and efficient provisions of public services. Freedom of speech protected by the First Amendment shall not be a basis for discipline. X Unauthorized possession or use of firearms or hazardous materials on HUC time or property. Y Refusal, during working hours, to submit to a Breathalyzer or other drug test required by law. CONFLICT OF INTEREST Employees must notify their Manager of any direct or indirect financial interest they have in any contract with HUC, any interest they have in a contractor supplying HUC, or any such interest they may have with any entity competing with HUC, and all such notifications shall be forwarded to the General Manager. Any employee with such a financial interest may not work on any HUC project or make any decision concerning an HUC project involving the employee's outside financial interest, unless the interest has been disclosed, and deemed acceptable by HUC management. OTHER EMPLOYMENT An employee's position at HUC must take precedence over any other job an employee holds. Employees must inform their Manager of any work they perform for profit outside of HUC's position to ensure there is no conflict of interest between the HUC j ob and the outside employment. All such notifications shall be forwarded to the General Manager. Also, employees are expected to be mentally alert and physically able to perform their Utility jobs. Employees may not work on their outside employment while on duty with HUC nor may any HUC property or equipment be used to conduct such business at any time. LICENSE REQUIREMENTS FOR UTILITY VEHICLE OPERATION Prior to hire date as an WC employee, the candidate's driving record is evaluated and must be approved. This is a condition of employment if operation of a vehicle is an essential part of an employee's job. An employee whose job requires operating a motor vehicle must possess a valid Minnesota Driver's License with necessary endorsements in order to conduct WC business. If an employee's driver's license is suspended, revoked, or cancelled during employment with HUC, the employee must immediately inform the employee's Manager or Supervisor who must inform the General Manager. The General Manager shall take appropriate action up to and including discharge. SMOKING The HUC observes and supports the Minnesota Clean Indoor Air Act. All HUC buildings and vehicles, in their entirety, shall be designated as tobacco free, meaning that smoking in any form (through the use of tobacco products (pipes, cigars and cigarettes) or "vaping" with e-cigarettes is prohibited while in a HUC facility or vehicle. Smoking of any kind, including pipes, cigars, cigarettes, vaping with e-cigarettes and the use of chewing tobacco is prohibited for employees while on duty. Employees 18 and over are allowed to smoke only during their breaks and lunch, and only in areas designated for that purpose. Per City of Hutchinson ordinance, smoking is prohibited in public places and places of work and within 15 feet of entrances, exists, open windows and ventilation intakes of public places and places of work. VIOLENCE IN THE WORKPLACE HUC strives to ensure a healthy and productive working environment. In that regard, safety and security are of the utmost importance. HUC will enforce zero tolerance for any acts of physical assault or threats of bodily harm in the performance of work duties, wherever those duties are performed. Policy on Violence HUC views aggressive and/or violent behavior as disruptive and contrary to the development and maintenance of a safe, productive and supportive work environment. Such behavior is not tolerated. Employees who exhibit such behavior will be held accountable under the policy and work rules, as well as local, state, and federal law. All threats and acts of aggression or violent behavior should be taken seriously and addressed immediately. Such threats or acts include, but are not limited to: • Harming or threatening to harm any employee or visitor; • Damaging or threatening to damage property or the property of any employee or visitor; • Unlawfully possessing a firearm, ammunition, weapon or incendiary device on HUC property, vehicles, construction sites or while attending HUC business -related activities off site; • Engaging in stalking behavior of any employee. Accountability All personnel are responsible for notifying their immediate supervisor, or in the absence of their supervisor, another member of the management staff of any threats that they have witnessed, received, or have been told that another person has witnessed or received. Even without an actual threat, personnel should also report any behavior they have witnessed which they regard as threatening or violent, when that behavior is job related or might be carried out on a public site, or is connected to municipal employment. Employees are responsible for making this report regardless of the relationship between the aggressor and the individual to whom the threat or threatening behavior was directed. Directive Any person who makes substantial threats, exhibits threatening behavior, or engages in violent acts against employees, visitors, guests, or other individuals while on HUC property shall be removed from the premises as quickly as safety permits and shall remain off HUC premises pending the outcome of an investigation. Law enforcement should be utilized to remove individuals who are perceived as a threat. HUC will initiate an appropriate response which may include, but is not limited to, suspension and/or termination of any business relationship, reassignment of job duties, suspension or termination of employment and/or criminal prosecution of the person or persons involved. Employees and supervisors should work together to identify and report situations or locations where there is a potential for physical assault or threat of bodily harm. Employees should record specific incidents, behaviors or conversations that may indicate a potential for violence. Documentation should be forwarded to their Manager. In instances where their supervisor is the source of potential violence, documentation should be forwarded to the next level of management with a copy to Human Resources. Supervisors must carefully review and assess information provided by employees or other sources. Appropriate precautions should be taken based on the specific situation. For example: If a problem situation or location is identified, it should be communicated to other employees who are likely to become involved in the situation or come in contact with the location. Individuals applying for a restraining order must provide their supervisor and Human Resources with a copy of the petition used to seek the order, and a copy of any temporary and permanent protective restraining order which is subsequently granted. Human Resources will monitor and evaluate the violence reports on an ongoing basis and will submit program reports to the General Manager when requested. OFFENSIVE BEHAVIOR/SEXUAL HARASSMENT It is HUC's policy to maintain a work environment free from offensive behavior and sexual harassment. Offensive behavior may include such actions as: rudeness, angry outbursts, inappropriate humor, vulgar obscenities, name calling, disrespectful language, or any other behavior regarded as offensive to a reasonable person. A violation of this policy is subject to discipline up to and including discharge. One specific kind of illegal behavior is sexual harassment. Sexual harassment includes unwelcome sexual advances, requests for sexual favors, sexually motivated physical conduct or other verbal or physical conduct or communication of a sexual nature when: 4. submission to that conduct or communication is made a term or condition of obtaining employment; or 5. submission to or rejection of that conduct or communication by an individual is used as a factor in a decision affecting that individual's employment; or 6. that conduct or communication has the purpose or effect of substantially interfering with an individual's employment or creating an intimidating, hostile, or offensive employment environment. Examples of conduct that violate this policy include, but are not limited to: • Repeated offensive sexual flirtations, unwelcome advances, propositions or invitations; or • Unwelcome repeated comments, jokes, displays, or suggestions of a sexual nature; or • Objectionable physical contact, including touching • In summary, sexual harassment is the unwanted, unwelcome and repeated action of an individual against another individual, using sexual overtones as a means of creating stress. Any employee who feels he/she is being subjected to offensive or discriminatory behavior of any kind or employees who are aware of such behavior is/are encouraged to express their objection to the behavior and should also immediately report the behavior to their immediate Supervisor, Department Manager, the Administrative/HR Coordinator, or the General Manager. In addition, the employee may also file a complaint with the Minnesota Department of Human Rights and the EEOC. A person must file a complaint with the Minnesota Department of Human Rights within one year of the incident and file a complaint with the EEOC within 300 days of the incident. Staff Personnel who receives an offensive behavior or discrimination complaint shall inform the General Manager and Human Resources of the complaint as soon as possible. The General Manager must ensure an appropriate and prompt investigation of the complaint. If the investigation substantiates the complaint, HUC will take appropriate corrective action. Strict confidentiality is not possible in all cases of sexual harassment as the accused has the right to answer charges made against them; particularly if discipline is a possible outcome. Reasonable efforts will be made to respect the confidentiality of the individuals involved, to the extent possible. Any employee who makes a false complaint or provides false information during an investigation may be subject to disciplinary action, up to and including termination. Retaliation against any person who files a complaint or participates in an investigation is expressly prohibited. Retaliation includes, but is not limited to, any form of intimidation, reprisal or harassment. Any individual who retaliates against a person who testifies, assists, or participates in an investigation may be subject to disciplinary action up to and including termination. RETIREMENT Any employee who elects to retire shall give the Employer sixty (60) days' written notice of date that employee intends to retire. RESIGNATION Employees leaving employment with HUC in good standing will be paid any accrued unused vacation. To leave employment in good standing, an employee should provide written notice of resignation to Supervisor or Manager at least 10 working days prior to the resignation effective date. The General Manager may waive this requirement for good cause. A terminating employee must also return all HUC property, and equipment including keys, security devices, clothing and small hand tools provided by HUC. SOLICITATION ON UTILITY PREMISES Salespersons offering merchandise not related to HUC business are prohibited from soliciting during normal business hours. Employees are discouraged from soliciting other employees. Brochures and/or pamphlets are allowed to be put out in the breakroom for voluntary participation. Employees shall not provide another employee's contact information to a salesperson without the employee's consent. EMPLOYEE GIFTS Employees are not required to make a contribution for a gift or grant a favor for another employee. FLOWERS In the event of the death of a full-time or part-time employee, or employee's immediate family, flowers/plant will be sent at HUC expense without delay to the appropriate funeral home. Information needed: Funeral Home Address Date to Send Flowers Similar consideration may be given, at the discretion of the General Manager or Managers, for retirees, consultants, Commission members or others who provide significant service to HUC. PETTY CASH Petry cash funds are kept with the Accountant. The petty cash fund will be used to reimburse payment up to $50.00. Any expenditure over $50.00 will be reimbursed by check. Itemized receipts must be attached to a completed petty cash slip whenever possible. An employee may obtain an advance of petty cash by completing a petty cash slip and reconciling the advance with the actual amount as soon as possible. HUTCHINSON UTILITIES COMMISSION Board Action Form �rre tit' Agenda Item: Approve Policy Changes Presenter: Angie Radke Agenda Item Type: Time Requested (Minutes): 5 Approve Policy Changes Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: As part of HUC's standard operating procedures, a continual policy review is practiced. The following revisions to the policies below are recommended. i. Drug and Alcohol (Exempt and Non -Exempt) BOARD ACTION REQUESTED: Approve Policy Changes Fiscal Impact: Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: EXEMPT ALCOHOL OR DRUGS Possession or consumption of alcohol or controlled substances is prohibited while on -duty or on/in any HUC equipment or property. An employee who reports to work incapacitated or whose performance is impaired through the use of alcohol or controlled substances is subject to disciplinary action up to and including discharge. All HUC employees required to maintain a Commercial Driver's License (CDL), and/or perform a maintenance or emergency function on a natural gas pipeline regulated by 49 CFR Parts 192, 193 or 195 must comply with the pIotEfl Gefflpliafiee S0 k44*i Drug and Alcohol Plan as administered by HUC. NON-EXEMPT ALCOHOL OR DRUGS Possession or consumption of alcohol or controlled substances is prohibited while on -duty or on/in any HUC equipment or property. An employee who reports to work incapacitated or whose performance is impaired through the use of alcohol or controlled substances is subject to disciplinary action up to and including discharge. All HUC employees required to maintain a Commercial Driver's License (CDL), and/or perform a maintenance or emergency function on a natural gas pipeline regulated by 49 CFR Parts 192, 193 or 195 must comply with the pIotEfl Gefflpliafiee S0 k44*i Drug and Alcohol Plan as administered by HUC HUTCHINSON UTILITIES COMMISSION ^I'�xP61Tti'°" Board Action Form Agenda Item: Approval of Ws Natural Gas Transportation and Daily Swing Supply Agreement Presenter: Jeremy Carter Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: 3M currently transports base load and daily swing supplies of natural gas on Hutchinson Utilities' transmission and distribution systems. 3M's current agreement expires on March 1, 2026 at 9 A.M.. This agreement provides transportation rights to 3M on Hutchinson's facilities from March 1, 2026 at 9:00 A.M., through March 1, 2027 at 9:00 A.M.. This Agreement is identical to the 2025 Agreement with the exception of the increased monthly meter fee based on the approved rate schedule by the commission. All fees are in alignment with the rate realignment structure approved by the Commission for this customer. BOARD ACTION REQUESTED: Approval of the 3M's Natural Gas Transportation and Daily Swing Supply Agreement Fiscal Impact: Approx. $706,000 Included in current budget: No Budget Change: Yes PROJECT SECTION: Total Project Cost: Remaining Cost: 226 Nchigan Street SE Hutchinson Hutchinson, MN 55350-1905 320-587-4746 f Fax 320-587-4721 1 Utilities Commission www,hutchinsonutilities.com fare % Putting All of Our Energy into Serving You AGREEMENT THIS AGREEMENT IS MADE BY AND BETWEEN HUTCHINSON UTILITIES COMMISSION, HEREINAFTER "HUC" AND MINNESOTA MINING AND MANUFACTURING CO., HEREINAFTER "3M", ON THE FOLLOWING TERMS AND CONDITIONS. WHEREAS, 3M DESIRES TO PURCHASE, AND HUC SHALL PROVIDE, FIRM NATURAL GAS TRANSPORTATION AND DAILY NATURAL GAS COMMODITY SWING SUPPLY FOR USE AT 3M'S HUTCHINSON NORTH AND SOUTH PLANTS; AND, WHEREAS, 3M DOES ACKNOWLEDGE THAT HUC WILL, IN RELIANCE UPON THIS AGREEMENT, ENTER INTO AN AGREEMENT TO PROVIDE FIRM NATURAL GAS TRANSPORTATION AND DAILY NATURAL GAS COMMODITY SWING SUPPLY. NOW, THEREFORE. IN CONSIDERATION OF THE FOREGOING AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES MAKE THE FOLLOWING AGREEMENT: HUC SHALL PROVIDE, AND 3M SHALL ACCEPT, FIRM NATURAL GAS TRANSPORTATION AND DAILY NATURAL GAS COMMODITY SWING SUPPLY COMMENCING MARCH 1, 2026, AT 9:00 A.M. AND TERMINATING ON MARCH 1, 2027, AT 9:00 A.M. I . HUTCHINSON'S SOLE OBLIGATION UNDER THIS AGREEMENT IS TO PROVIDE FIRM NATURAL GAS TRANSPORTATION AND DAILY NATURAL GAS COMMODITY SWING SUPPLY TO 3M. 2. 3M SHALL PAY HUC BY THE FOLLOWING SCHEDULE DURING THE TERM OF THIS AGREEMENT: FLOW THROUGH A NATURAL GAS METERS TRANSPORTATION $0.47/DTH (TRANSMISSION - $0.20/DTH) (DISTRIBUTION - $0.27/DTH) METER FEE $1,034/METER (5 METERS) MONTHLY PEAK DAY DEMAND $9.00/MCF 3. HUC SHALL TRANSPORT ALL 3M QUANTITIES FROM THE HUC PIPELINE TRIMONT/TRIMONT RECEIPT POINT TO THE HUTCHINSON 3M NORTH AND SOUTH PLANTS LOCATED IN HUTCHINSON, MINNESOTA. HUTCHINSON AGREES TO PROVIDE DAILY SWING SUPPLY TO 3M AT THE APPLICABLE PRICE, AS PUBLISHED FOR THE DAY BY PLATT'S "GAS DAILY" IN ITS "DAILY PRICE SURVEY ($/DTH)" FOR "NORTHERN, VENTURA" "MIDPOINT" ("DAILY INDEX") PLUS/MINUS $0.01 . SWING SUPPLY IS DEFINED AS SUPPLY INCREASES OR DECREASES, FROM CONTRACTED LEVELS, NOMINATED AT LEAST 24 HOURS PRIOR TO THE START OF THE GAS DAY. 4. HUTCHINSON SHALL PROVIDE 3M WITH REAL-TIME BALANCING, BASED ON THE FOLLOWING: BEST EFFORTS REALTIME SWING NOMINATED LESS THAN 24 HOURS PRIOR TO THE END OF THE GAS DAY ON A BEST EFFORTS BASIS, PRICED AT THE APPLICABLE PRICE, AS PUBLISHED FOR THE DAY BY PL4TT'S "GAS DAILY" IN ITS "DAILY PRICE SURVEY ($/DTH)" FOR "NORTHERN, VENTURA" "MIDPOINT" ("DAILY INDEX"), PLUSIMINUS $0.1 5. 5. 3M SHALL PROVIDE TO HUC, BY THE END OF THE 1 5TH DAY OF THE MONTH PRIOR TO GAS FLOW, THE BASE LOAD LEVEL OF NATURAL GAS REQUIRED FOR THE FOLLOWING MONTH. IN THE EVENT HUC HAS NOT RECEIVED THE BASE LOAD NOMINATION FROM 3M BY THE END OF THE 15TH DAY OF THE MONTH PRIOR TO THE GAS FLOW, HUC SHALL NOMINATE THE CURRENT MONTH'S BASgLOAD LEVEL FOR THE FOLLOWING MONTH 6. DURING THE TERM OF THIS AGREEMENT, HUC SHALL NOT BE LIABLE FOR STOPPAGE OF FLOW ON THE PIPELINE, NORTHERN BORDER PIPELINE COMPANY EQUIPMENT FAILURE, OR ANY OTHER FORCE MAJEURE WHICH AFFECTS THE FLOW OF GAS TO THE HUC BORDER STATIONS, OR ANY ACT OF GOD WHICH INTERRUPTS FLOW OF GAS ON THE PIPELINE. 7. PAYMENT IS DUE FROM 3M ON OR BEFORE THE TENTH DAY FOLLOWING THE DATE THE BILL IS ISSUED BY HUC. 8. THE INITIAL TERM FOR SERVICE UNDER THIS AGREEMENT IS ONE (1) YEAR. 3M MUST NOTIFY HUC IN WRITING THREE (3) MONTHS PRIOR TO THE EXPIRATION OF THE TERM IF 3M DESIRES TO CONTINUE SERVICE UNDER THIS AGREEMENT. IF 3M HAS COMPLIED WITH ALL TERMS OF THIS AGREEMENT, AND HAS NO OUTSTANDING ARREARAGES, 3M MAY, UPON WRITTEN NOTICE PROVIDED TO HUG THREE (3) MONTHS PRIOR TO THE EXPIRATION OF THE CURRENT TERM, EXTEND THIS AGREEMENT FOR A MUTUALLY AGREED -UPON PERIOD. IF A TERM FOR THE EXTENSION CANNOT BE AGREED UPON BY 3M AND HUTCHINSON, THE PARTIES AGREE TO A MINIMUM TERM OF (1) YEAR. IF SUCH TIMELY NOTICE IS NOT PROVIDED BY 3M, HUC IS NOT OBLIGATED TO RENEW SERVICE FOR 3m. REPRESENTATIVES OF HUC AND 3M SHALL MEET APPROXIMATELY (2) MONTHS PRIOR TO THE EXPIRATION DATE OF THE INITIAL TERM OF THIS AGREEMENT TO DISCUSS FUTURE OPERATIONS. THIS AGREEMENT SETS FORTH ALL TERMS AGREED UPON BETWEEN THE PARTIES, AND NO PRIOR ORAL OR WRITTEN AGREEMENTS SHALL BE BINDING. THIS AGREEMENT SHALL NOT BE ALTERED, AMENDED OR MODIFIED EXCEPT AS IN WRITING AND EXECUTED BY BOTH PARTIES. HUTCHINSON UTILITIES MINNESOTA MINING & COMMISSION MANUFACTURING BY: BY: 0I�L NAME: NAME: �jlCl�l TITLE: COMMISSION PRESIDENT TITLE: DATE: DATE: BY: NAME: TITLE: DATE: HUTCHINSON UTILITIES COMMISSION ^I'�xP61Tti'°" Board Action Form Agenda Item: Approve Req 010514 Cooling Tower Pipe Repair Plant 1 Presenter: Mike Gabrielson Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The cooling tower at Plant 1 has developed a water leak under ground on the 20" return line to the cooling tower. GPRS came out and scanned the pipe and located the area of the leak. Rosnow Industrial is the contractor that will be fixing the underground leak on the return pipe. BOARD ACTION REQUESTED: Approve Req 010514 Cooling Tower Pipe Repair Plant 1 Fiscal Impact: $83,000 Included in current budget: No El Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: IHI UT iU H II HI S U HII UT'IIILIITIIIE'S a I(,� ii'JG 11�p Ili II I! � �a II ii';� If1i ROSNOW INDUSTRIAL LLC. 8808 FARMSTEAD COURT MONTICELLO, MN 55362 Note Description: Cooling Tower Pipe Repair Plant 1 PURCHASE REQUISITION HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 Date Requisition No. 02/18/2026 010514 Required by: Requested by: mgabrielson Item No. part No. Description Qty Unit Due Date Unit Price Ext. Amount COOLING TOWER PIPE REPAIR PLANT 1 - MFG. PART: 1 1.00 EA 03/20/2026 $83,000.000 $83,000.00 Total: 83,000.00 Date Printed: 02/18/2026 Requisitioned By: mgabrielson Page: 1/1 JOB SUMMARY REPORT Order Number: Work Order #866148 job Date: Jan 7, 2026 4:59:00 PM Customer: 166214 HUTCHINSON Billing Address: HUTCHINSON UTILITIES UTILITIES COMMISSION COMMISSION 225 Michigan St SE Hutchinson MN 55350 United States Jobsite Location 44 4th Avenue Northeast, Hutchinson, Minnesota 55350 Work Order Number Work Order #866148 Job Number PO Number GPRS Project Manager: Cody Exner Thank you for using GPRS on your project. We appreciate the opportunity to work with you. If you have questions regarding the results of this scanning, please contact the lead GPRS project manager on this project. The following equipment was used on this project: • Underground GPR Antenna: This GPR Antenna uses frequencies ranging from 250 MHz to 450 MHz and is mounted in a stroller frame that rolls over the surface. Data is displayed on a screen and marked in the field in real time. The surface needs to be reasonably smooth and unobstructed to obtain readable scans. Obstructions such as curbs, landscaping, and vegetation will limit the efficacy of GPR. The total effective scan depth can be as much as 8' or more with this antenna but can vary widely depending on the soil conditions and composition. Some soil types, such as clay, may limit maximum depths to 3' or less. As depth increases, targets must be larger to a detected, and non-metallic targets can be challencling to locate. The depths provided should always be treated as estimates as their accuracy can be affected by multiple Tactors. For more information, please visit: Link • EM Pipe Locator: Electromagnetic Pipe and Cable Locator. Detects electromagnetic fields. Used to actively trace conductive pipes and tracer wires, or passively detect power and radio signals traveling along conductive pipes and utilities. For more information, please visit: Link • Leak Noise Amplification: A leak noise amplification system will be used to listen for leak noise at various contact points (valves, hydrants, etc.) in order to identify a general location of a potential water leak. This same system can also be used with a ground microphone in order to attempt to pinpoint the leak from the surface. Its effectiveness depends on a variety of factors such as pipe size and material, water pressure, leak size, soil type, and noise interference from traffic, machinery, etc. If found, a potential leak will be marked on the surface and documented as needed. For more information, please visit: Link • Leak Noise Correlator: The Leak Noise Correlator consists of sensors placed on water system contact points. The device will process sound signals between the contact points to provide a position of the leak between the two points. The Leak Noise Correlator's accuracy depends on the feasibility of locating the pipe and requires accurate information from the client regarding pipe attributes such as size and material. For more information, please visit: Link 1 of 4 JOB SUMMARY REPORT LEAK DETECTION Client Provided Drawings Yes Scope of Work Locate leak on a low pressure supply and return lines for a cooling tower. Roughly PSI was 5 on return and 17 on the supply. Line was made of steel and 18" thick Leak Job Type Locate Total Length of Pipe Reviewed 200 ft Pipe Material - Unknown/Other Quantity of Contact Points 2 (Hydrants, Valves, Meter Pits, etc.) Approximate GPR Effective Depth (ft) 4 Total Quantity of Leaks Detected 1 Supplementary Leak Report? No Leak Location Method - Leak Noise Amplification System (DXMic/S30) Leak Ground Type - Pavement/asphalt Limitations Encountered - Unable to correlate (low SNR reading - Not enough contact points - Unable to add contact points via ground rods) - Ambient noise near the leak Marking Medium - Spray Paint Results Notes - [ ] Leak was presumably on the return line after inspection. - [ ] This was presumed due to return line coming out of the side of the cooling tower about a foot - [ ] Correlations on both lines did not detect any leaks along the line. Probably due to the lower PSI along this lines - [ ] Ground mic was used along the line and loudest signal was heard roughly at the 90 on the return line where it comes up to the cooling tower. - [ ] No other utilities where found within the area of concern and these water lines in question where roughly 4-5 feet deep. 2 of 4 Jobsite Photo #1 Jobsite Photo #2 JOB SUMMARY REPORT 3 of 4 JOB SUMMARY REPORT • • • Contact Information Contact Name Mike Gabrielson Email mgabrielson@hutchinsommn.gov httD://www.aDrsinc.com/termsandconditions.htmi 4 of 4 Rosnow Industrial US, Job #RI-1010 ROS,NOW INDUSTRIAL LLC TIME AND MATERIALS PROJECT CONTRACT AGREEMENT "N HS CON'I'RA(,,,,r made (his Ist ckkv of' February, 2026 by arid between Rosnow Industrial, LLC., hercinaller called the Contractor, and Hutchinson Utilities Commissionhereinaller called the Owner, for the construction of the Hutebinion Utilities Cooling Tower Repairs. For the conNideration hercinaller narned, the Contractor agrees with the Owner, as follows: The contractor agrees to perform the work according to the conditions, ol7tbe Contract, to the satisfaction or the Owner.The Contract consists, of this Agreement between Owner arid Contractor, product, submittal information. other docurnents listed in this Agreement arid Modifications issued afler execution of this Agreement and are as I'lilly a part of the C.,,ontracl as, if attached to this Agreetnent or repeated herein. ARTICLE 1. WORK: A. 'The Contractor a grees to furnish all labor, material, skill and equipment necessary or required and to perform all the work necessaj�y to complete their scope of work defined here in this contract All labor perforrrw d on -site and deliveries to lheJobsile must be performed by qualified personnel, Scope of Work: All cooling tower piping repairs as described in the Rosnow Industrial "utchinson Cooling Tower Repairs project proposal attachment. The contractor .,hall perform the above -mentioned work in strict compliance to ASTM, OSH&,and industry stan(hirds,. General summary of work to be performed as follows, A. Excavation of the existing 20" pipe to make repairs. Backfill the excavation after repairs are completed. Remediation, of the asphalt as weather permits. B. Removal and replacement of the existing chain link fencing as necessary to perform the work. C. Repair of a 20" carbon steel pipe. This includes replacing, up to 21' of pipe, (1) 90 degree elbow, (1) slip on flange, and (4) 20" welds. D. Restoration of the wooden spray boxes where they were broken when the pipe shifted. L Temporary fencing around the work area to limit access to construction personnel. V Temporary batbroom facilities. G. General coordination between the Owner and any subcontractors. ARTICLE 2.11ME: A. The Contractor agrees to begin work of this contract. as soon as the pro,icct is ready or within seven (7) calendar days alter being notified in writing by the Owner (No work to be started by the Contractor until all requircd insurance certificates are on life at the Owners office). This contract will be void if insurance requirements are not met or lapse. B, To complete the %vork of ibis contract inaccordance with a standard construction schedutc. CThat in case the Contractor shall fail to complete or diligently proceed with this Contract within the time herein provided for, the Owner upon (7) calendar days' notice in wrifing to the Contractor shall have the riglit to uike over this Contract and complete the scope of this Contract, either through its own eniployees or through a contractor or subcontractor of its. choice, and to charge the cost thereofto the Contractor. In case of del'ault on part of the Contractor under terms of this Contract, the material, of the Contractor shall remain on theJob for use of the Owner in completing the work covered by this Contract. D. The Owner agrees that as standard construction schedule shall be based upon an eight (8) hour working clays, five (5) days per week Monday Friday. Ifin the event the Owner determines it is necessary to increase the rate of construction beyond a nonna] construclion selledule, Owner shall submit written notice to lbe Contractor. Contractor has, five (5) business days to submit to Owner a written proposal detailing changes in the Contract or Contract budget for the Owner to review. An executed agreement between the Owner and Contractor is required before any increase in the rate of conStrUdiOn that inay require a change in Contract or Contract budget. ARTICLE 3. CLEAN-UP; A. Contractor shall at all finics keep the project free from accuTnulations of waste materials or rubbish caused by Contractor'.,,-, ciriployces or scope of work., and at the completion (if the work each day, shall remove all rubbish from and about the building arid shall leave his area of work broom clean. At completion ofalork rerrurive all tools,scaffolding, surplus inaterials, etc. and brooin Qtuan his area ofwork and wipe surfaces of material installed to a dirt free condition, free of stains, films, ,in(] similar foreign substances. IfContractor fitils to keep the proJect clean of their contract work debris, the Owner will give Contractor one (1) warning in writing, If Contractor continues to fall to keep the project clean, the Owner shall charge Contractor lbr labor required 10 Perform Such cleaning duties on behalf of the Contractor. ']'his amount for this cleaning dirty will be deducted frorn the amount duc the Contractor. B, Contractor shall provide a dumpster to dispose of their project rubbish and debris. The owner shall make an area avai table on site for the clumpster that will not create unreasonable distances or pathways to dispose of rubbish or debris. C, Owner shall provide and area for Contractor to store tools or equipment that, are required throughout the pnjml. Thi% includes a parking, area for cornpany supplied work vehicles, cquipmem, traiicrs,and storage facilities. AR TIC LE, 4. S A F ET V A N D OA U LITY CO N'TROL - A. The Contractor shall take all safety PIVCaUtiouS with respect to his work, shall comply vvith all safety measures initiated by the Page I of 3 0wner, required by the Contract Documents and with all applicable laws, OSIIA standards, ordinances, rules, regulations and lawful orders or any public authority for the safety of persons or property. B. To guarantee the Contract work against all defects in material or workmanship for a period of one (1), year from the date of acceptance of the Project by the Owner. Cllat in case the Contractor shall fail to correct, replace and / or re-executc I'dulty or defective work done and/or materials furnished under this Contract, when and if required by the Owner, or shall fail to complete or diligently proceed with this Contract within the time herein provided for, the Owner upon seven (7) calendar days' notice in writing to the Contractor shall have the right to correct, replace and/or re -execute, such faulty or defective work, or to take haver this Contract and complete sante either through its own, employees or through a contractor or subcontractor of its choice, and to charge the cost thereof to the Contractor. 1). The Contractor accepts responsibility for all damage caused by the Contractor, to clean all surfaces soiled by the Contractor, and to protect the work performed by the Contractor, it being understood that the:; standards orprolection shall not be less than those required by law, and to be responsible for any detective or improper work or material cause(] by its failure to do so. If any dispulearises between the Contractor and Owner as to responsibility for itern(s) damage, the dispute shall be settled via, written agreement between the Contractor and the Owner. ARTICLE 5. ASSIGNMENT & ACCEPTANCE OF WORK: A. To employ no person whose employment oil or in connection with this Contract may be objectionable to the Owner anti to remove any such person when objected to by the Owner, all upon reasonable grounds. 11. If any part of the Contractor's work depends for proper execution or results upon the work or the Owner or any other contractor, the Contractor shall inspect and promptly report to the Owner any apparent discrepancies or detects in such work that renders it unsuitable For such proper execution and results. failure of the Contractor to inspect and/or report shall constitute an acceptance of the work performed prior and the Contractor finds it fit and proper to receive theirwoth. I ARTICLE 6. EXTRAS (CHANGE REQIIESTS): A. No deviations from the work- specified in the contract will be perinitted anclJoradditional costs incurred by the contractor will not be reimbursed without prior wr_itten ff)proval horn the Owner's company officer. Contractor trust give notice to the Owner of call claims for extras, promptly in writing, or within the time allowed in the change request. 11, That the Owner shall have the right to order in writing the omission or addition of any pails of the work or materials as omitted from or added to tile C,oruract by the Owner, that fair adjustments shall be made in the Contract price for such ornitted or added work or materials. (7. Contractorsball have the right and authority to purchase, install, and charge liar Time and Materials as necessary to complete the work scope, described, in this Agreement. Work outside of the work scope described in this contract shall be defined as an extraand will require a written agreement as described above. ARTICLE 7. INSURANCE AND PERMITS - A. The Conti -actor agrees to obtain mid pay for the following insurance convcrges: Work, itien's Compensation, Public Liability, property Damage, and any other insurance coverage which may be necessary as required by the Owner or State Law (See 0"werrequirements). ('.'okitractoralso agrees to furnish tile Owner satisfactory evidence, that it has complied with this paragraph, and to obtain and furnish to the Owner an undertaking by the insurance company issuing each such policy that such policy will not be cancelled except after fifteen ( l5) days' notice to the Owner of its intention to dcm so. I'lle Contractor agrees to assume entire responsibility and liability, to the fidlest extent permitted by hov, for all darnages or injury to all persons, whether employees or otherwise. and to all property, arising out ofil, resulting from or in aniy manner connected with, the execution of the work provided for in this Contract or occurring Or resulting from die use by the Contractor, their agents or employees, of materials, equipment, or property., whether the same be owned, by the Owner, the (.3ontractor, as Subcontractor or third parties and tile Contractor, to the fullest extent permitted by law, agrees to indemnify and save hatinless the Owner, their agents and employees i'rom all such claims including, without limiting generality of the foregoing, claims for which the Owner may be claimed to bc, liable and legal fecs and disbursements paid or inclarred to enforce like provisions of this paragraph and the Contractor ftirther agrees to obtain, maintain and pay, for such general lhibilily insurance coverage and enclorsernents as will insure the provisions of this paragraph. I lowever, this provisioyn shall not require the Contractor to indemnify [lie Owner or their employees or agents against the consequences of their own negligence. B. Contractor to save harmless the Owner from all tosses or damage (including without limiting generality of the foregoing, legal fees mid disbursements paid or incurred by the Owner to enforce the provisions of ibis paragraph) occasioned by the failure or the Contractor to carry out the provisions orthis Contract. C. Contractor will obtain and pay for license and, permits needed to perform their scope of work. Contractor will be solely responsible for the quality and control of work that is covered under its license and/or pertnit. ARTICLE . PAYMENTS: A. Contractor to pay for all materials, skills, labor., and equipment used or in conjunction with the performance of this Conti -act. when and Lis bills or claims therefore become due, and to save and protect the Project and the Owner from all claims arid inecharkies hens can account thereof, and to furnish satisfactory evidence to line Owner, that (lie Contractor has complied with the above Te(JUirefu011tS. This Provision $flail not be construed as a waiver rigid of the Contractor to file and enforce at lien claim against the Owner in the event of then Owner's failure to pay tile Contractor. B. Monthly invoices based oil the actual incurred expenses of labor wages and materials (including materials, equipment rentals', subcontractor expenses„ and other expenses incurred that are not labor wages) plus Contractor's markup will be submitted by the Contractor and received by the Owner on or before the 10,h of the mokith, for work corripleted in the pi-eviowmonai. Said invoices; shall be paid as follows: Invoices submitted by the Contractor to be paid within (30) days by Owner and after the Contractor shall have completed his work to the full safiL,fl`action of tile Owner. Contractor shall make available at the request of the Owner daily labor records that indicate the, number cif hours employees performed work for the project and a summary of the work performed during those hours. CThe failure of the Owner to make payments as and when herein provided shale entitle the Contractor to suspend all work and shipments Page 2 of 3 during the continuance of such default on the part of the Owner, D. If notification of any clahns have been made against the Contractor arising out oflabor or materhils furnished on the project oil account of any actions car failures to act by the Contractor in perfomiance ofth is Contnact, the Owner may, withhold rrorn such amounts otherwise due or to become due bereander a sum adequate cover said claims and any costs or expenses arising or to arise in connection therewith pending legal settlement thereof. E. Paynients due the Contractor by the Owner that are delinquent over 30 days From the payment clue date shall be subject, 14) kill applicable laws and regulations including,, but not limited to, mechanics liens. ARTICLE , 9. ATTACHM ENTS: A. Owners insurance certificate requirenients B. Rosnow Industr4d I futchinson Cooling Tower Repairs project, proposal IN CONSall: ERA,rION W H EREOF, the Owner agrees to enter a Contract with the Contactor that will be billed based on actual time and rnaterials expenses incurred phis ContrActor markup not 14.) exceed L'ighty three Mousand dollars and 00/100 Dollars (S83,000.00) I , Fhe Owner and the Contractor forthernscivos, their successors, executors, adnlinistr�,,aors and assigns, hereby agree to the roll perl'ormance of the covenants herein conwinc& IN WITNFISS W1 IEIU.,,,OF, they have executed this agreement on the day and year first above below. CONTRACTOR OWNER SICIllSIGNATURE BY 13Y TITLE DATF' Please sign and return to- Rosnow Industrial LLC, 88018 I"annstead Court- Monticello. MN 55362 Page 3 o0 Attachment #1 Coverages and Limits: The Contractor shall provide insurance to include a minimum of the following coverages and associated limits: Coverage 1. Worker's Compensation Employer's Liability 2. Comprehensive General Liability - Combined Single Limit 3. Automobile Liability - Combined Single Limit 4. Umbrella (Excess) Liability Limits Statutory $500,000 each Employee $500,000 each disease $500,000 each accident $1,000,000 each occurrence $2,000,000 aggregate $1,000,000 each occurrence $2,000,000 each occurrence B. Additional Insured: The Owner shall be named as an additional insured under the prime Contractor's insurance policies and the Owner and Engineer shall be listed as an additional insured on all certificates of insurance. Owner: Hutchinson Utilities Commission its employees and officials 225 Michigan St SE Hutchinson, MN 55350-1905 Attachment #2 4 R 0 S N Old„ III I,'1 J D l,w) "'l 16 SeY II A IL.... I III 8808 Farmstead Court Monticello MN 55362 (612) 804-0969 Project Proposal .JIpdate ' 2/1 "7/2()26 Project: Hutchinson Utilities Condenser Water Prepared For: Mike Gabrielson, Production Pipe Repairs Address: 44 Fourth Ave. NE Hutchinson, MN 55350 Prepared By: Hunter Rosnow, Owner Manager Phone: (612) 804-0969 Email: hunter.rosnow@rosnowindustrial.com Scope of Work: Rosnow Industrial is to furnish material and/or labor as needed to repair a suspected leak in the 20" cooling tower water return line according to the notes below. All work shall be performed in accordance with the contract specifications, details, drawings, notes, current codes, and regulations by the authority having jurisdiction. All permits, consumables, and other necessary equipment are included as applicable in this proposal. Notes: -Project Scope: This proposal is prepared as a budget for "Time and Materials, Not to Exceed". The work scope this budget number was prepared is based on the following work scope. Civil work: Rosnow Industrial will provide labor, equipment, and materials needed to excavate the 20" steel pipe from 90-degree bend at base of the cooling tower return pipe up to 10' past the next horizontal 90-degree bend. Restoration of asphalt (up to 20' x 20') is included and based on spring/summer conditions. Mechanical work: Rosnow Industrial will provide labor, equipment, and materials to replace up to 21' of 20" standard wall pipe, one 20" 90 fitting, and one 20" flange. The existing 20" riser will be moved back to its proper position and sealed to the tower. The wooden spray boxes will be repaired as needed. -Work scope outside of the scope described above will require a change order signed and approved by both Rosnow Industrial and the Owner. -This proposal is for normal working hours 7:00am-3:30pm Monday through Friday. Work required to be performed outside of the normal working hours will be subject to overtime rates and double time rates as applicable. -Net 30 invoices will be sent monthly. -This quote is valid for 30 days. Work to be completed prior to May 1, 2026. -One year warranty provided on all parts and labor. Warranty statement will be included with final project closeout documents. -Rosnow Industrial reserves the right to review and amend any contractual agreement prior to its execution. 11 III::^ a g Attachment #i 2 R 0 S N Old„ II D 1.) 0�"'1 16 S" l A IG.... 1II1 C Other Exclusions: 8808 Farmstead Court Monticello MN 55362 1. Temporary cooling tower piping. 2. Contaminated/ polluted soil cleanup. (612) 804-0969 Time and Materials, Not to Exceed: $83,000 Hunter Rosnow -Owner Proposal Date February 17, 2026 "1evlsiloin l Vkjiiruairy 12, 2026. ltcslsed date curur((: ir1in oirig1iiial pir(( Ijcsal date oil: Jlainuairy10 2020 to read a urn:: a ur. y '16, 2026. y III'�ur.(:'wlj sal °t .... csuisuicur� IIC ^Ilk7�iur.::�sur. 11, 020� . csuisc�: III'��ur.(:wlll'��s�s date �sur�::�sur.y "16, 2026 t allow°'Ile ljilc ur.eAewcd wlUIAn °Uie'110.day sccclllptaiiicc whir dow at a ui-nee lun0 oin III ^Ijiiu uair.y 20, 2026. 21 III::^ a g CORVAL 1° ROL JP January 27, 2026 Mr. Mike Gabrielson Production Manager Hutchinson Utilities Commission 225 Michigan St. SE Hutchinson, MN 55350 Cooling tower piping repair- replace: Quote #312113 On behalf of Corval Constructors, Inc., I would like to thank you for the opportunity as well as express our desire and intention to be your Contractor for the project listed Cooling tower piping repair- replace project This proposal includes labor, material, and equipment for the project based on the following: • Documents: o Project walkthrough with Hutchinson Utilities representative Install Budget Pricing.....................................................................................$148,650.00 Due to material shortages and market volatility, Corval reserves the right to update proposal pricing and/or schedule. To ensure your team understands our pricing, we have included the following clarifications: Piping: • Labor for demo and install of new piping and water box and pipe readjust. • Excavation of ditch with trench boxes • Hydro Excavations around utilities as needed • Aggregates and dump fees. • Crane for rigging • City permit included • 2 weeks of ground thawing included • Site traffic control, sawcut, removal, and replacement of bituminous material • All material as needed for project • Fabrication as needed Clarifications/Exclusions: • We have assumed reasonable site access for our equipment, trucks, and deliveries. • Bond for project excluded for the work next to the Hwy. • Overtime is excluded • Corval onsite supervision will be either OSHA 10 or OSHA 30 trained. • Liquidated damages are excluded. • A performance and payment bond is not included in this proposal. • Dedicated on -site safety and QC personnel are not included in this proposal. • This proposal is subject to reaching a mutually acceptable contract. Please feel free to contact me with any questions. Sincerely, Damen Lobinsky Project Manager/ Estimating/ Account Manager 612.986.7474 // �.2.lJi sl6cy. � c ry .l..9.rq �..1 ..::. ..:Y CORVAL CONSTRUCTORS, INC. 11633 EUSTIS STREET, ST. PAUL, MN 551081 P 651-645-0451 1 WWW.CORVALGROUP.COM CORVAL GROLJP CORVAL CONS 7 IWC MRS, )'t C CQIRVAICUMIII IIIRUC III GIRS, IIIIIIYC CORVAL CONSTRUCTORS, INC. 11633 EUSTIS STREET, ST. PAUL, MN 551081 P 651-645-0451 1 WWW.CORVALGROUP.COM CORVAL 1° ROL JP ACCEPTANCE AGREEMENT By signing below, Customer authorizes Corval Constructors, Inc. to perform the Scope of Work as proposed above subject to the following Terms and Conditions. This Acceptance Agreement shall be binding on both parties until a mutually acceptable contract is executed, if any. TERMS AND CONDITIONS 1. The Acceptance Agreement Amount will be the amount proposed by Corval Constructors, Inc. 2. Customer agrees to make payments to Corval Constructors, Inc. within (30) calendar days from the date of each invoice. If the duration of the Scope of Work is greater than one month, invoices for work completed will be submitted to the Customer on a monthly basis. 3. Customer will provide Corval Constructors, Inc. reasonable access to the work areas, including the use of existing facilities and utilities by Corval Constructors, Inc. and its subcontractors. 4. Corval Constructors, Inc. shall not be liable to the Customer for any delay, loss or damage caused in whole or in part by the unavailability of machinery, equipment, or materials; strikes, lockouts, or other labor unrest; riots, wars, or other civil unrest; acts of God, fire, theft or malicious acts; corrosion, normal wear and tear or any other cause beyond the control of Corval Constructors, Inc. 5. This Acceptance Agreement shall be governed, interpreted and enforced under the laws of the State of Minnesota. 6. Customer may order changes in the Scope of the Work upon the mutual agreement of an equitable adjustment in the Acceptance Agreement Amount. 7. The schedule for the performance of the Scope of Work shall be established by the mutual agreement of both parties and shall be binding on both parties. 8. Corval Constructors, Inc. shall maintain insurance of such types and in such amounts as is commercially reasonable in connection with its Work hereunder and will provide Customer a Certificate of Insurance evidencing such coverage upon request. Corval Constructors, Inc.'s liability shall be limited to available insurance proceeds. Building owner is to carry fire, property and other necessary insurance. Building owner is to provide safe work area with free access to carry out above work. 9. The Customer is responsible for all asbestos, lead and other hazardous material testing, removal, and subcontractors. 10. Upgrading of existing systems to meet the most current codes is limited to the scope of work detailed above. 11. All Work shall be performed during normal workday (7:00 am to 3:30 pm M-F) on straight time unless otherwise noted. 12. Drain down and refilling of piping systems by others unless noted above. 13. On all accounts over (30) days, Customer agrees to pay all reasonable collection fees and/or attorney fees. All accounts past due are subject to interest at the maximum legal rate. 14. This Proposal is valid for (30) calendar days. This Proposal is further conditioned upon either the execution of the following Acceptance Agreement or the execution of a mutually acceptable contract. This Proposal shall be considered incorporated by reference, whether attached or not, to any subsequent contract, purchase order or agreement. 15. Market Condition Alert: Due to volatile market conditions, all material quotes have limited validly, which may be subject to price increases passed along to Customer. Authorized Signature Date Printed Name Title CORVAL CONSTRUCTORS, INC. 11633 EUSTIS STREET, ST. PAUL, MN 551081 P 651-645-0451 1 WWW.CORVALGROUP.COM PIONEER il>� POWER, INC. MECHANICAL CONTRACTORS January 23rd 2026 Hutchinson Utilities Commission 225 Michigan St SE Hutchinson, MN 55350 Subject: Cooling Tower return line repairs Mike, 2500 Ventura Drive Woodbury, MN 55125 Phone: (651) 488-5561 Fax: (651) 488-2652 www.pioneerpower.com We propose to furnish the labor, material, and supervision to perform the referenced scope of work with the following clarifications: 1. Our price is based on working (8) hours a day and (5) days a week Monday through Friday. 2. Scope of work to include partial removal of fence and one post, remove the vertical pipe to remove weight from the system. Then we will remove the asphalt and excavation to expose the underground pipe. We will then identify the pipe leak and make repairs as required and patch pipe paint as required (pricing only covers up to the replacement of elbow and make (2) 20" field welds if necessary). If pipe needs to be replaced, that is not covered. We will then repair the spreader boxes and pull the pipe back in. After that is complete, we will put the vertical pipe back in place then properly backfill and compact, patch asphalt and reinstall fence. 3. Pioneer Power Inc. offers a standard (1) year warranty on the installation. 4. Invoices will be Net 30 days and will be submitted monthly with a 1-1/2% finance charge per month on balances over 30 days. Inclusions: • Labor • Material as needed • Fence Removal/Reinstallation • Crane • Shoring • Temporary Fencing • Aerial Lift • Asphalt patch • Excavation • Rebuild spreader boxes • Sales Tax Exclusions: • Lockout/Tag Out • Permit • NDE • Overtime • Testing An Equal Opportunity Employer Sincerely, A� Ethan Faber Project Manager An Equal Opportunity Employer