05-18-2004 HUCM
Minutes
Special Hutchinson Utilities Commission
May 18,2004
7:00 p.m.
A special meeting of the Hutchinson Utilities Commission was called to order at 7:00 p.m. by
President Paul Ackland.
Members Present: Paul Ackland, Marlin Torgerson, Dave Wetterling, Don Walser, and Craig
Lenz
Others Present: General Manager Michael Kumm and City Attorney Marc Sebora
The severance package to be given to former Interim General Manager Patrick Spethman was
discussed. The Utilities' initial severance offer had been rejected. Attorney Sebora explained
that the Commission's options were increasing its offer, modifying its offer, or, in view ofMr.
Spethman's attorney's letter threatening litigation, meeting in closed session. It was discussed
that the Hutchinson Utilities Commission handbook, on page 19, provides that compensatory
time was not to be paid out to exempt employees upon separation from employment. Accrued
sick time and the provisions of the handbook that sick time be only paid out upon retirement, no
more than 1/3 of any amount over 240 hours, was discussed. It was mentioned that it is the
City's policy not to payout sick time in these types of cases.
The various possible causes of action outlined in the letter from Mr. Spethman's attorney were
discussed. Attorney Sebora stated that, in his opinion, the Commission had followed the
appropriate steps in the process and had done nothing wrong that would give rise to liability in a
lawsuit. He stated that Mr. Spethman had been informed from the beginning of the process of
hiring a new General Manager, and had been informed in 2003 that he might not be hired as the
General Manager. He had been given opportunity to apply and another, more qualified
candidate, was chosen. Motion by Commissioner Walser to limit any severance package to
payment of vacation time accrued. Second by Commissioner Wetterling. There was further
discussion about Mr. Spethman having rejected what the Commission considered to be a
generous offer, more than most people make in a year. The vote was called and the motion
passed unanimously.
Request by the Minnesota Environmental Quality Board for a soil study along the pipeline route
was discussed. Attorney Christopher Dietzen was present by telephone conference. He
recommended a settlement proposal summarized as: 1) soil study costs would be capped at
$50,000.00 and property owners required to sign release of any losses from the investigation; 2)
investigation would be conducted on land owned by non-settling landowners; 3) EQB would not
conduct investigation on property of owners who had settled their claims effective on or after
March 19,2003; 4) after discovery of significant and material violations of the EQB permit, no
further soil investigation would be conducted in 2004; 5) Commission and its consultants may
observe the study and be provided with soil samples for independent analysis, but may not
actively participate in the study; 6) the EQB will prepare a budget; 7) Commission does not
waive objections in the event litigation becomes necessary to resolve the differences between the
parties.
Commisioner Lenz made a motion to enter into the settlement agreement with the EQB,
Commissioner Torgerson seconded, the motion passed unanimously.
A motion was made to enter into closed session to consider the results of a Veteran's Preference
proceeding instituted by former employee John Gornik. After closed session discussion,
Commissioner Torgerson made a motion not to appeal the decision, seconded by Commissioner
Wetterling, passed unanimously.
At 8:07 p.m., Mr. Torgerson made a motion to adjourn the meeting, which was seconded by
Dave Wetterling. The motion passed