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06-28-2006 HUCM Regular Meeting June 28, 2006 Members present: President Craig Lenz; Vice President Donald Walser; Secretary David Wetterling; Commissioner Steven Cook; Commissioner Dwight Bordson; General Manager Michael Kumm Member absent: Attorney Marc Sebora President Lenz called the meeting to order at 3:00 pm. General Manager Kumm gave an update on items discussed from last month's meeting: the payment to Mid-Country Bank to replace a lost check was a rebate check made payable to Mid-Country Bank for energy conservation measures; the work order reports have been updated; and, we will receive the $30,000 medical fund adjustment in July. Secretary Wetterling made a motion to approve the minutes of the May 31, 2006 Regular Meeting. Vice-President Walser seconded the motion and it passed unanimously. Manager Kumm discussed the payment of bills. Vice President Walser asked about the payment to Ferguson Enterprises. This is related to the Highway 7 project. Commissioner Bordson had questions on our inventory control system. A 'preferred vendors' system is being evaluated where the vendor can inventory items for us. President Lenz asked about the payment to Great River Energy. This is final payment to do the re-splicing on the Luce Line Trail. Secretary Wetterling made a motion to ratify the payment of bills in the amount of $2,958,312.19 (detailed listing in payable book). Commissioner Bordson seconded the motion and it passed unanimously. General Manager Kumm explained the financial statements/budget year-to-date. In order to provide better communication to the board as it relates to the increase in wholesale electric costs, General Manager Kumm prepared a comparison showing these increased costs from 1999 to 2005. There will be a large medical claim coming through in the next month or two (with the $30,000 refund coming through in July). Vice President Walser made a motion to approve the financial statements and budget year to date. Secretary Wetterling seconded the motion and it passed unanimously. Discussion took place regarding the wording of the Parallel Generation Policy. Commissioner Cook made a motion to approve the Policy on Parallel Generation that was tabled from the May 31, 2006 regular meeting, noting the requested changes. Commissioner Bordson seconded the motion and it passed unanimously. Jan Sifferath presented the requested changes to the exempt employee handbook, tabled from the May 31, 2006, regular meeting. General Manager Kumm explained that we will be adding the benefit of reimbursing tuition fees to the non-exempt employees handbook. This has been a benefit that has been used in the past for all employees, but it was never stated as a benefit for the non-exempt employees. If this benefit is voted down during negotiations, it can be removed. But because this is a past practice, a precedent has been set, it needs to be included in the new handbook. Commissioner Cook and President Lenz noted some grammatical errors that will be corrected in the final document. Jan Sifferath will check with Attorney Sebora to see if there are any issues with the LMCIT as it relates to camera phone and/or cameras in general. Vice President Walser made a motion to Approve Changes to Exempt Employee Handbook that was tabled from the May 31, 2006 regular meeting, subject to changes to the final document made by Jan Sifferath and staff. Commissioner Cook seconded the motion and it passed unanimously. Jan Sifferath presented the New Non-Exempt Employees Handbook. With changes to be made to Section 2 and like changes from Exempt Employee Handbook, the final versions of both handbooks will be made available for the Commissioners. Secretary Wetterling made a motion to approve the New Non-Exempt Employee Handbook that was tabled from the May 31, 2006 regular meeting subject to noted changes. Commissioner Bordson seconded the motion and it passed unanimously. General Manager Kumm explained that because the approved Employee Handbooks include new policies on business related vehicle operations and travel expense, the two previous policies we have on file need to be rescinded. Vice President Walser made a motion to rescind Business Related Vehicle Operation and Travel Expenses Policies. Secretary Wetterling seconded the motion and it passed unanimously. General Manager Kumm presented Section 4 - Community Support of the Strategic Management Process. President Lenz asked if the Conservation Improvement Program (CIP) can be included in this section also, even though it is included in a previous section. And he [see minutes of July 26, 2006 Regular Meeting] Commissioner Cook asked if we could revisit with Mark Schnobrich and the Department of Commerce to discuss 'in direct' and 'direct' energy savings as it relates to the Tree Program for the 2006-2007 CIP program. Dave Hunstad discussed the quotes for 2006 underground conversions & re-conductor project. Jerrick Construction dissolved their company and consequently their contract was dissolved. We had to re-quote our prices and our recommendation is to award the quote to Stiele Construction. Secretary Wetterling made a motion to approve quote for 2006 Underground Conversions and Re-Conductor Project to Steile Construction. Commissioner Bordson seconded the motion and it passed unanimously. John Webster presented requisition 001923 for 24,500' of plastic pipe from Groebner & Associates Inc. Our inventory is getting low on 2" pipe and it's more economical to buy a truckload than a partial truckload. The 24,500' of pipe should last two to three years. President Lenz asked if there were multiple quotes and in the future include all quotes for a comparison. Commissioner Cook made a motion to approve Requisition #001923 for 24,500' Plastic Pipe from Groebner and Associates for $18,264.75. General Manager Kumm discussed the Sib-Ren-Fair Agreement. This agreement has been negotiated, signed, and needs to be ratified/approved at a public meeting [see minutes of July 26, 2006 Regular Meeting] hearing. Commissioner Cook made a motion to Ratify the Agreement with Sib-Ren-Fair and HUC. Vice President Walser seconded the motion and it passed unanimously. General Manager Kumm asked for authorization to execute the Interconnect Agreement with Xcel Energy. The transmission agreements will be sent to MISO and FERC for completion. Secretary Wetterling made a motion approving Authorization for General Manager Kumm to Execute Interconnect Agreement with Xcel Energy. Commissioner Cook seconded the motion and it passed unanimously. Division Reports Gas - John Webster Staying ahead of the Highway 7 project and renting vacuum excavating machine for 'pot holing' Electric - Dave Hunstad and Steve Lancaster Keeping up with Highway 7 project Outages: bad underground - fixed; contractor hit overhead transmission line on 3rd Ave NW - will be meeting to discuss safety issues Running #9, generating more Hiring people for positions that are coming available since Don Merkins' retirement - good internal people filling these positions Legal Update None Old Business None New Business Commissioner Cook asked if the truck that is for sale was offered to the City to purchase. The ad and sale of that truck was handled per our surplus policy. Commissioner Cook would like our preliminary budget provided in August and at the end of October the board could receive the first review of the 2007 budget. Vice President Walser made a motion to adjourn at 5:20 pm. Secretary Wetterling seconded the motion and it passed unanimously. David Wetterling, Secretary ATTEST Craig Lenz, President 0 Regular Meeting June 28, 2006 Members present: President Craig Lenz; Vice President Donald Walser; Secretary David Wetterling; Commissioner Steven Cook; Commissioner Dwight Bordson; General Manager Michael Kumm Member absent: Attorney Marc Sebora President Lenz called the meeting to order at 3:00 pm. General Manager Kumm gave an update on items discussed from last month's meeting: the payment to Mid - Country Bank to replace a lost check was a rebate check made payable to Mid - Country Bank for energy conservation measures; the work order reports have been updated; and, we will receive the $30,000 medical fund adjustment in July. Secretary Wetterling made a motion to approve the minutes of the May 31, 2006 Regular Meeting. Vice - President Walser seconded the motion and it passed unanimously. Manager Kumm discussed the payment of bills. Vice President Walser asked about the payment to Ferguson Enterprises. This is related to the Highway 7 project. Commissioner Bordson had questions on our inventory control system. A 'preferred vendors' system is being evaluated where the vendor can inventory items for us. President Lenz asked about the payment to Great River Energy. This is final payment to do the re- splicing on the Luce Line Trail. Secretary Wetterling made a motion to ratify the payment of bills in the amount of $2,958,312.19 (detailed listing in payable book). Commissioner Bordson seconded the motion and it passed unanimously. General Manager Kumm explained the financial statements /budget year -to -date. In order to providing better communication to the board as it relates to the increase in wholesale electric costs, General Manager Kumm prepared a comparison showing these increased costs from 1999 to 2005. There will be a large medical claim coming through in the next month or two (with the $30,000 refund coming through in July). Vice President Walser made a motion to approve the financial statements and budget year to date. Secretary Wetterling seconded the motion and it passed unanimously. Discussion took place regarding the wording of the Parallel Generation Policy. Commissioner Cook made a motion to approve the Policy on Parallel Generation that was tabled from the May 31, 2006 regular meeting, noting the requested changes. Commissioner Bordson seconded the motion and it passed unanimously. Jan Sifferath presented the requested changes to the exempt employee handbook, tabled from the May 31, 2006, regular meeting. General Manager Kumm explained that we will be adding the benefit of reimbursing tuition fees to the non - exempt employees handbook. This has been a benefit that has been used in the past for all employees, but it was never stated as a benefit for the non - exempt employees. If this benefit is voted down during negotiations, it can be removed. But because this is a past practice, a precedent has been set, it needs to be included in the new handbook. Commissioner Cook and President Lenz noted some grammatical errors that will be corrected in the final document. Jan Sifferath will check with Attorney Sebora to see if there are any issues with the LMCIT as it relates to camera phone and /or cameras in general. Vice President Walser made a motion to Approve Changes to Exempt Employee Handbook that was tabled from the May 31, 2006 regular meeting, subject to changes to the final document made by Jan Sifferath and staff. Commissioner Cook seconded the motion and it passed unanimously. Jan Sifferath presented the New Non - Exempt Employees Handbook. With changes to be made to Section 2 and like changes from Exempt Employee Handbook, the final versions of both handbooks will be made available for the Commissioners. Secretary Wetterling made a motion to approve the New Non - Exempt Employee Handbook that was tabled from the May 31, 2006 regular meeting subject to noted changes. Commissioner Bordson seconded the motion and it passed unanimously. General Manager Kumm explained that because the approved Employee Handbooks include new policies on business related vehicle operations and travel expense, the two previous policies we have on file need to be rescinded. Vice President Walser made a motion to rescind Business Related Vehicle Operation and Travel Expenses Policies. Secretary Wetterling seconded the motion and it passed unanimously. General Manager Kumm presented Section 4 - Community Support of the Strategic Management Process. President Lenz asked if the Conservation Improvement Program (CIP) can be included in this section also, even though it is included in a previous +-Commissioner section.',- asked if we could revisit with Mark Schnobrich and the Department of Cook Commerce to discuss 'in direct' and `direct' energy savings as it relates to the Tree Program for the 2006 -2007 CIP program. Dave Hunstad discussed the quotes for 2006 underground conversions & re- conductor project. Jerrick Construction dissolved their company and consequently their contract J was dissolved. We had to re -quote our prices and our recommendation is to award the quote to Stiele Construction. Secretary Wetterling made a motion to approve quote for 2006 Underground Conversions and Re- Conductor Project to Steile Construction. Commissioner Bordson seconded the motion and it passed unanimously. John Webster presented requisition 001923 for 24,500' of plastic pipe from Groebner & Associates Inc. Our inventory is getting low on 2" pipe and it's more economical to buy a truckload than a partial truckload. The 24,500' of pipe should last two to three years. President Lenz asked if there were multiple quotes and in the future include all quotes for a comparison. Commissioner Cook made a motion to approve Requisition #001923 for 24,500' Plastic Pipe from Groebner and Associates for $18,264.75. General Manager Kumm discussed the Sib -Ren -Fair Agreement. This agreement has been negotiated, signed, and needs to be ratified /approved at a public: hearing. Commissioner Cook made a motion to Ratify the Agreement with Sib -Ren -Fair and HUC. Vice President Walser seconded the motion and it passed unanimously. General Manager Kumm asked for authorization to execute the Interconnect Agreement with Xcel Energy. The transmission agreements will be sent to MISO and FERC for completion. Secretary Wetterling made a motion approving Authorization for General Manager Kumm to Execute Interconnect Agreement with Xcel Energy. Commissioner Cook seconded the motion and it passed unanimously. Division Reports Gas - John Webster Staying ahead of the Highway 7 project and renting vacuum excavating machine for `pot holing' Electric - Dave Hunstad and Steve Lancaster Keeping up with Highway 7 project Outages: bad underground - fixed; contractor hit overhead transmission line on 3rd Ave NW - will be meeting to discuss safety issues Running #9, generating more Hiring people for positions that are coming available since Don Merkins' retirement - good internal people filling these positions Legal Update None Old Business None New Business Commissioner Cook asked if the truck that is for sale was offered to the City to purchase. The ad and sale of that truck was handled per our surplus policy. Commissioner Cook would like our preliminary budget provided in August and at the end of October the board could receive the first review of the 2007 budget. Vice President Walser made a motion to adjourn at 5:20 pm. Secretary Wetterling seconded the motion and it passed unanimously. I_1 ng, Secretary �l Hutchinson Utilities Commission Parallel Generation (20 kW or less) — Net Energy Billing Effective In All territories served by Hutchinson Utilities Commission. 2. Availability Available for single -phase and three -phase customers where a part or all of the electrical requirements of the customer are supplied by the customer's generating facilities, where such facilities have a total generating capability of 20 kW or less, where such facilities are connected in parallel with the utility and where such facilities are approved by the utility. The budget payment plan will not be available to customers with parallel generation. 3. Rate The customer shall be billed monthly on a net energy basis and shall pay the fixed charge and energy charge specified in the rate schedule under which he is served. If, in any month, the customer's bill has a credit balance of $100 or less, the amount shall be credited to subsequent bills until a debit balance is reestablished. If the credit balance is more than $100, the utility shall reimburse the customer by check upon request. Monthly credits shall be computed by taking the net excess kilowatt -hours produced times the sum of the current (P -1) Rate schedule. (the average monthly cost of wholesale power to the City of Hutchinson). 4. Metering and Services Facilities A customer who is served under a regular rate schedule shall have any ratchet and /or other device removed from his meter to allow reverse power flow and measurement of net energy used. Customers eligible for net energy billing but with existing metering facilities equipped with ratchets or other devices preventing reverse registration (i.e. time -of -use metering facilities) may request that the utility install the necessary metering to permit such billing. 5. Customer Obligation See Sections 9 and 10. Customer -Owned Generation Systems (Greater than 20 kW) 1. Effective In All territories served by Hutchinson Utilities Commission. 2. Availability Available for single -phase and three -phase customers where a part or all of the electrical requirements of the customer are supplied by the customer's generating facilities, where such facilities have a total generating capability of greater than 20 kW and less than or equal to 100 KW, where such facilities are connected in parallel with the utility. Customers not desiring to sell energy under this rate have the right to negotiate a buy -back rate. The energy rate indicated below is the minimum for electrical energy. Customers with generating facilities greater than 100 kW can negotiate a buy -back rate. Should the utility be unwilling to pay the minimum rate for electrical energy, the utility shall agree to transport such electrical energy to another utility that will pay such minimum rate. The utility shall recover actual costs of such transportation from the generating customer. The budget payment plan will not be available to customers with parallel generation 3. Rate Customers shall receive monthly payments for all electricity delivered to the utility and shall be billed by the utility for metering and associated billing expenses specified in the latest rates of the wholesale supplier unless the latest rates of the wholesale supplier do not properly reflect avoided costs. In such event, the Commission, upon request, may determine appropriate rates. The utility shall have on file a copy of the latest customer -owned generation system rates for its wholesale supplier. 4. Minimum Charge The monthly minimum charge paid by the customer shall be the customer charge. 5. Power Factor The customer shall operate on a net power factor of not less than 94 percent. A power factor penalty will apply if the power factor drops below 94 percent. 2 Customer -Owned Generation Systems (Greater than 20 kW) continued 6. Negotiated Rates Customers with generation systems greater than 100 kW can negotiate a buy- back rate. Customers with generation systems greater than 20 kW and less than or equal to 100 kW have the right to negotiate a buy -back rate. The buy -back rate cannot be greater than the full, avoided cost. The following are the required procedure guidelines: a. The utility must respond to the customer -owned generating system within 30 days of the initial written receipt of the customer -owned generating system proposal and within 30 days of receipt of a subsequent customer - owned generating system proposal, b. The utility's rejection of the customer -owned generating system proposal must be accompanied by a counter -offer relating to the specific subject matter of the customer -owned generating system proposal, and C. If the utility is unable to respond to the customer -owned generating system proposal within 30 days it shall inform the customer -owned generating system of: 1) Specific information needed to evaluate the customer -owned generating system proposal. 2) The precise difficulty encountered in evaluating the customer - owned generating system proposal. 3) The estimated date that it will respond to the customer -owned generating system proposal. d. The Commission may become involved in the utility negotiations upon showing by either utility or the customer -owned generating system that a reasonable conclusion cannot be reached under the above guidelines. The Commission may provide a waiver to the guidelines and order new negotiation requirements so that a reasonable conclusion can be reached. e. A copy of all negotiated buy -back rates shall be given to the Commission. These rates shall not be effective until, approved by the Commission. 3 Customer -Owned Generation Systems (Greater than 20 kW) continued 7. Charges for Energy Supplied by the Utility Energy supplied by the utility to the customer shall be billed in accordance with the standard applicable rate schedules of the utility. 8. Maintenance Rate A customer -owned generation facility may be billed lower demand charges for energy purchased during scheduled maintenance provided written approval is obtained in advance from the utility. Demand charges other than "Distribution Demand" shall be prorated if maintenance is scheduled such that the utility does not incur additional capacity costs. Said probation shall be demand charge times the number of authorized days of scheduled maintenance divided by the number of days in the billing period. 9. Contract Required A contract is required between the utility and the customer -owned generation facility. The contract shall specify safety, system protection, and power quality rules that generators must comply with. Contracts with customer -owned generation facilities selling energy under the standard (non- negotiated) rate have no specific term or length. Contracts with customer -owned generation facilities selling energy under a negotiated rate shall contain performance requirements and be of sufficient length to ensure the utility avoids the costs for which the customer -owned generation facility has been paid. 10. Customer Obligation a. Metering Facilities The customer shall furnish, install and wire the necessary service entrance equipment, meter sockets, meter enclosure cabinets, or meter connection cabinets that may be required by the utility to properly meter usage and sales to the utility. b. Interconnection Costs The owner of the generating facility shall be required to pay all interconnection costs, incurred by the utility. The owner shall pay said costs, including financing costs, prior to the final service connection to the Hutchinson Utilities electrical system. 4 Customer -Owned Generation Systems (Greater than 20 kW) continued C. Insurance The customer shall keep in force liability insurance, of at least $300,000.00, against personal or property damage due to the installation, interconnection, and operation of its generating facility. d. Interconnection and Operation (Safety and Power Quality) Requirements Electric Service to a customer -owned electric generation installation may be disconnected for failure to comply with these requirements. 1) Interconnection of a generating facility with the utility system shall not be permitted until application has been made to and approval received from the electric utility. The utility may withhold approval only for good reason such as failure to comply with applicable utility or governmental rules or laws. The utility shall require a contract specifying reasonable technical connection and operating aspects for the parallel generating facility. 2) The utility may require that for each generating facility there is provided between the generator or generators and the utility system, a lockable load -break disconnect switch. For installations interconnected at greater 600 volts a fused cutout switch may be substituted, where practicable. The switches shall be accessible to the utility for the purpose of isolating the parallel generating facility from the utility system when necessary. 3) The utility shall require a separate distribution transformer for a customer having a generating facility where necessary, for reasons of public and employee safety or where the potential exists for the generating facility causing problems with the service of other customers. Ordinarily the requirement should not be necessary for an induction -type generator with a capacity of 5 kW or les, or other generating units of 10 kW or less that utilize line- connected inverters. 4) Where necessary, to avoid the potential for a facility causing problems with the service of other customers, the utility should limit the capacity and operating characteristics of single -phase motors. Ordinarily single -phase generators should be limited to a capacity of 10 kW or less. 4^+ Customer -Owned Generation Systems (Greater than 20 M) continued 5) The utility shall require that each generating facility have a system for automatically isolating the generator from the utility's system upon loss of the utility supply, unless the utility desires that the local generation be continued to supply isolated load. For synchronous and induction generators such protection against continued operation when isolated from the utility system will ordinarily consist of over - current protection, fuse or circuit breaker, plus a voltage or frequency controlled contactor which would automatically disconnect the unit whenever its output voltage or frequency drifted outside predetermined limits, such as plus or minus 10 percent of the rated values. Other suitable protective systems against abnormal voltages of frequencies may be accepted by the utility. 6) The utility shall require that the customer discontinue parallel generation operation when it so requests and the utility may isolate the generating installation from its system at times: During such times, Hutchinson Utilities Commission shall not be liable for revenue lost by the customer. a) When considered necessary to facilitate maintenance or repair of utility facilities. b) When considered necessary during system emergencies. c) When considered necessary during such times as the generating facility is operating in a hazardous manner, or is operating such that it adversely affects service to other customers or to nearby communication systems or circuits. 7) The owner of the generating facility shall be required to make the equipment available and permit entry upon the property by electric and communication utility personnel at reasonable times for the purposes of testing isolation and protective equipment, and evaluating the quality of power delivered to the utility's system; and testing to determine whether the local generating facility is the source of any electric service or communication systems problems. n. Customer -Owned Generation Systems (Greater than 20 kW) continued 8) The power output of the generating facility shall be maintained such that the frequency and voltage are compatible with normal utility service and do not cause that utility service to fall outside the prescribed limits of Commission rules and other standard limitations. 9) The generating facility shall be operated so that variations from acceptable voltage levels and other service impairing disturbances do not result in adverse effects on the service or equipment of other customers, and in a manner that does not produce undesirable levels of harmonics in the utility power supply. The customer agrees to disconnect the generating facility from the HUC distribution system or reimburse HUC for the cost of necessary system modifications if operation of the generating facility causes radio, television, internet, or electrical service interference to other customers, or interference with the operation of the HUC electrical system. 10) The owner of the generating facility shall be responsible for providing protection for the owner's installation equipment and for adhering to all applicable national, state and local codes. The design and configuration of certain generating equipment such as that utilizing line- commutated inverters sometimes requires an isolation transformer as part of the generating installation for safety and for protection of generating facilities. 11) Customer agrees to locate the generating facility so as to not interfere with the HUC distribution system. Customer agrees that the installation shall be in compliance with all applicable electric codes and the generating facility will be operated only after installation has been inspected and approved by appropriate authorities. Customer agrees to obtain all required permits, building and zoning information, and applicable inspections. 12) The customer agrees to reimburse HUC for any addition, modification, or replacement of any distribution components made necessary by the customer's installation. 13) Customer agrees to effectively install grounding and provide surge arrestor protection to prevent lightning damage to HUC distribution system. 7 Customer -Owned Generation Systems (Greater than 20 kW) continued 11. Utility Obligation a. Metering Facilities The utility shall own and install appropriate meter to record all flows of energy necessary to bill in accordance with the charges and credits of the rate schedule. b. Notice to Communication Firms Each electric utility shall notify telephone utility and cable television firms in the area when it knows that customer -owned generating facility is to be interconnected with its system. This notification shall be as early as practicable to permit coordinated analysis and testing in advance of interconnection, if considered necessary by the electric or telephone utility or cable television firm. 12. Right to Appeal The owner of the generating facility interconnected or proposed to be interconnected with a utility system may appeal to the Commission should any requirement of the utility service rules or the required contract be considered to be excessive or unreasonable. Such appeal will be reviewed and the customer notified of the Commission's determination. Contract for Parallel Generation facilities This contract is entered into Commission (hereafter called "Utility ") and (hereafter called "customer") RECITALS by Hutchinson Utilities The customer has installed electric generating facilities, consisting of rated at kilowatts of electricity, on property located at The customer is prepared to generate electricity in parallel with the Utility. The customer meets the requirements of the Utilities rules on parallel generation and any technical standards for interconnection the Utility has established that are authorized by those rules. The Utility is obligated under federal and Minnesota law to interconnect with the customer and to purchase electricity offered for sale by the customer. AGREEMENTS The customer and the Utility agree: 1: The Utility will sell electricity to the customer under the rate schedule in force for the class of customer to which the customer belongs. 2. Payment per KW for Energy delivered to HUC, in Excess of Energy Used by the customer. Es 3. The rates for sales and purchase of electricity may change over the time this contract is in force, due to actions of the Utility. The customer and the Utility agree that sales and purchases will be made under the rates in effect each month during the time this contract is in force. 4. The customer must operate its electric generating facilities within any rules, regulations, and policies adopted by the utility, which provide reasonable technical connection and operating specifications for the customer (Hutchinson Utility Commission's rules and regulations applicable to parallel generation are attached). 5. The customer will operate its electric generating facilities so that they conform to the national, state, and local electric and safety codes, and will be responsible for the costs of conformance. 6. The customer is responsible for the actual, reasonable costs of interconnection which are estimated to be $ The customer will pay the Utility in this way 7. The customer will give the Utility reasonable access to its property and electric generating facilities if the configuration of those facilities does not permit disconnection or testing from the Utility's side of the interconnection. If the Utility enters the customer's property, the Utility will remain responsible for its personnel. 8. The Utility may stop providing electricity to the customer during a system emergency. The Utility will not discriminate against the customer when it stops providing electricity or when it resumes providing electricity. 9. The Utility may stop purchasing electricity from the customer when necessary for the Utility to construct, install, maintain, replace, remove, investigate, or inspect equipment or facilities within its electrical system. The Utility will notify the customer before it stops purchasing electricity in this way. 10. The customer shall keep in force liability insurance, of at least $300,000.00, against personal or property damage due to the installation, interconnection, and operation of its generating facility. 11. This contract becomes effective when signed by the customer and the utility. This contract will remain in force until either the customer or the Utility gives written notice to the other that the contract is canceled. This contract will be canceled 30 days after notice is given. 10 12. This contract contains all the agreements made between the customer and the Utility. The customer and the Utility are not responsible for any agreements other than those stated in this contract. THE CUSTOMER AND THE UTILITY HAVE READ THIS CONTRACT AND AGREE TO BE BOUND BY ITS TERMS. AS EVIDENCE OF THEIR AGREEMENT, THEY HAVE EACH SIGHNED THIS CONTRACT BELOW ON THE DATE WRITTEN AT THE BEGINNING OF THIS CONTRACT. Customer Date: 1 Li 11 HUTCHINSON UTILITIES COMMISSIOM 0 Date: 1 HUTCHINSON UTILITIES COMMISSION Revised June 2006 EXEMPT EMPLOYEE HANDBOOK TABLE OF CONTENTS SECTION 1— INTRODUCTION What is Hutchinson Utilities Commission 4 Purpose of this Handbook 5 Definitions 5 SECTION 2 — ADMINISTRATION OF PERSONNEL POLICIES & PROCEDURES Savings Clause 7 Equal Employment Opportunity 7 Hiring Procedures 7 Probationary Period Upon Hiring g Temporary Employees g Promotions and Transfers g Layoffs 9 Voluntary Leave of Absence 9 Employment of Relatives 9 Membership /Dues /Conventions 9 Personnel Records Access and Data Privacy 10 Complaint/Grievance Procedure 10 Employee Conduct 11 Discipline 11 Conflict of Interest 13 Other Employment 13 Employee Groups 14 License Requirements for Utility Vehicle Operation 14 Smoking 14 Alcohol or Drugs 14 Firearms 14 Offensive Behavior /Sexual Harassment 15 Retirement 15 Resignation 16 Solicitation on Utility Premises 16 Employee Gifts 16 Flowers 16 Business Related Vehicle Operation 16 Community Advertising 17 Petty Cash 18 SECTION 3 — HOURS AND CONDITIONS OF EMPLOYMENT Flextime Program 19 Rest Periods 19 Meal Periods 19 Attendance/Tardiness 19 Time Clocks 20 Report for Work 20 Use of Facilities During Off -Duty Hours 20 Inclement Weather 20 Use of Telephones and E -mail 20 Personal Visitors and U.S. Mail 21 SECTION 4 — WAGE AND SALARY INFORMATION Pay Period, Paydays 22 2 Payroll Deductions 22 Overtime 22 Compensation Plan 22 Travel Expenses 25 Worker's Compensation 26 SECTION 5 — EMPLOYEE BENEFITS Vacation 27 Holidays 27 Life Insurance 28 Health/Dental Insurance 28 Disability Insurance 28 Family and Medical Leave (FMLA) 28 Parental Leave 29 Sick Leave 30 Training and Education Assistance 30 Workplace Accommodation 31 Unpaid Extended Leave of Absence 31 Family Death 31 Emergency Leave 32 Military Leave 32 Jury Duty 32 Volunteer Fire or Rescue Squad Duty 32 Retirement Program 32 Deferred Compensation 32 Personal Use of Utility Facilities and Equipment 32 Employee Recognition Compensation 33 SECTION 6 — HEALTH AND SAFETY Accidents and Injuries 34 Unsafe Conditions or Practices 34 Employee Right -To -Know 34 APPENDICES Appendix A — Acknowledgement 35 Appendix B — New Employee Acknowledgement 36 Appendix C — Temporary Employee Acknowledgement 37 3 Section I INTRODUCTION We are pleased to welcome you to the Hutchinson Utilities Commission. This Handbook has been prepared to familiarize you with our operating policies and procedures as well as your responsibilities as an employee. We hope you will find your work interesting and rewarding. When you become an employee of Hutchinson Utilities Commission, you represent Hutchinson Utilities to our customers and the general public. We should strive to show the best image possible. Should you have any questions regarding policies or procedures, kindly talk with your Director, Manager or Supervisor. WELCOME TO HUTCHINSON UTILITIES COMMISSION WHAT IS HUTCHINSON UTILITIES COMMISSION The Municipal Electric Light Plant was established in 1935 as a result of a special election authorizing the establishment of a new generating plant and distribution system through a bond issue of $250,000 to pay for the construction. The vote was 1,187 for and 128 against. Contracts were awarded for the construction of a new power plant building at the intersection of State Highways 7 and 15. The contract included three (3) 625 hp 430 kw diesel generating units, switchboard, a complete distribution system and other auxiliary equipment. On November 28 1936, construction was completed and by January of 1937, over 600 customers were connected. By the end of March, the system was serving 1,171. The City Charter was amended in 1935 to create a Utilities Commission to manage and operate the system. In 1960, the City constructed a natural gas distribution system, buying natural gas from Northern Natural Gas Company, and selling it to the citizens of Hutchinson and the surrounding rural area. Natural gas is also used in firing the dual generating units of the light plant. Since 1936, the Hutchinson Utilities Commission, consisting of three (3) qualified voters of the City of Hutchinson, has operated the Municipal Electric Plant and the Natural Gas Distribution System. It was established by Section 17 of the City Charter that the Commissioners be appointed by the City Council, one (1) every two years, for a six year term. No Commissioner can serve more than two (2) successive terms. The Commission elects a President, Vice President, and Secretary. In November of 1987, the City Charter was amended to expand the Utilities Commission to a five (5)- member board. Each Commissioner's term will be five (5) years and no Commissioner can serve more than two (2) successive terms. n The City Charter gives the Commission full, absolute and exclusive control of and power over the City Light and Power Plant and the Natural Gas Distribution System. The Commission hires a General Manager to manage the day -to -day operation of the Utilities. The Hutchinson Utilities Commission has, for many years, made substantial cash contributions to the General Fund of the City of Hutchinson from surplus earnings of both the electric and gas divisions of the Utilities. Hutchinson Utilities Commission has provided and will continue to provide to its customers, electricity and natural gas at the lowest possible cost. Purpose of this Handbook The contents of this Employee Handbook are for information only. The Hutchinson Utilities Commission does not intend to create a contract by the publication and issuance of this Handbook and under no circumstances is it to be construed as a contract of employment. The Commission reserves the right to change the policies and procedures in this Handbook at any time without notice. Definitions In this Handbook, the following terms shall have the meanings as listed below: "Commission' ' means the Hutchinson Utilities Commission. "Essential employees" means power plant operators, system controllers, line workers, and natural gas service workers. "Exempt employees" means executive, professional and administrative employees as those terms are defined in the Fair Labor Standards Act ( "FLSA ") and who are not subject to the minimum wage and overtime provisions of the FLSA. "General Manager" means the Chief Executive of Hutchinson Utilities who is appointed by the Commission. "Immediate family" means spouse or significant other, parent, stepparent, guardian, child, stepchild, sibling, grandparent, grandchild, and any in -law. "Non- exempt employees" are employees who are generally paid hourly and are subject to the minimum wage and overtime provisions of the FLSA. "Regular full -time employee" means an employee who has been appointed to an authorized, budgeted position who is not temporary or probationary and who is regularly scheduled to work 40 hours during a work week. Generally, regular full -time employees are eligible for Utility benefit programs subject to the terms, conditions and limitations of each benefit program. "Seniority" means length of consecutive employment as a regular full -time employee with Hutchinson Utilities. 5 "Staff personnel" means Director of Electric Division, Director of Natural Gas Division, Business Manager, Manager of Electric Production, Manager of Electric Distribution, Manager of Technical Services and Accounts Supervisor. "Temporary employee" means an employee who may work up to 40 hours per week but for a maximum of 24 weeks per year, even if not consecutive weeks. Temporary positions are eligible for legally mandated benefits such as Social Security but are ineligible for Utility benefit programs. "Utility" and "Utilities" means Hutchinson Utilities. "Working days" means Monday through Friday. 0 Section 2 ADMINISTRATION OF PERSONNEL POLICIES AND PROCEDURES 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 past practice, in which case the Union 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 Refer to HUC Affirmative Action Plan adopted June 1989 Hiring Procedures It is the Commission's policy to hire qualified applicants through internal employee promotion and external recruitment if appropriate. Notice of all vacancies or positions shall be posted ten (10) working days within all Utility departments and also advertised externally where appropriate. All applications must be submitted to the General Manager no later than the final day for closing of applications. The appropriate Director shall review applicant qualifications and develop criteria to determine eligibility, assuring compliance with the Veterans Preference law. The Director shall arrange for interviews of qualified applicants. If there are fewer than three (3) applicants, the hiring process shall be referred to the General Manager. In addition to interviews, the hiring process may include any of the following: • Abilities, skills or job knowledge tests. All such tests must be job - related and must be administered to all applicants. 7 • Examination of the applicant's criminal conviction history. Applicants will be provided a list of probable and mandatory disqualifying convictions. • Examination of the applicant's driving record for those positions requiring operation of Utility vehicles. Applicants will be provided a list of probable and mandatory disqualifying convictions. • Contact of employment references. • Verification of education or training. • A medical examination may be required after a job offer has been extended to an applicant that is conditioned upon the applicant passing the medical examination. The medical examination must be job - related and aimed at determining whether the applicant is fit for employment in a particular position. The General Manager shall send the successful applicant a letter confirming the terms of employment. 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 all Commissioners. Final interviews for Director positions will be conducted by the General Manager and the President of the Commission. Probationary Period Upon Hiring A newly hired exempt employee shall serve a nine (9) month probationary period during which the employee shall have the opportunity to demonstrate abilities and work performance. During this qualifying period, the employee should discuss progress with the employee's Director, Manager or Supervisor and become fully acquainted with the job and co- workers. The Commission 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 Director or Manager must inform the General Manager of the desire to employ a temporary worker longer than 14 weeks. Promotions and Transfers The Commission 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 employees shall serve a six (6) month probationary period during which time the promoted employee may be placed back in the employee's previous job classification at the sole discretion of the Staff Personnel, without loss of seniority. We encourage employees to discuss their career plans and goals with their Director, Manager or Supervisor. Layoffs The Utility retains its right to eliminate positions within the organization if the Commission deems it appropriate to do so. If a layoff occurs, the Utility 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 The Utilities 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 a Utilities employee, a Commission member, a Hutchinson City Council member or other City employees and officials. Any Utilities employee who extends such preferential treatment is subject to discipline. No two members of an immediate family may work within the same Utilities department. No member of the immediate family of the General Manager or a current member of the Commission may be employed by the Utilities. A former Commission member may not be hired as an employee of the Utilities for two years after the end of the Commissioner's term in office. Employment relationships in existence prior to adoption of this policy may be continued. Membership/Dues /Conventions Employees are encouraged to join and participate in professional and technical associations, which are expected to enhance job performance. The Utilities will pay the Association dues if membership relates directly to an employee's job with the Utilities. The appropriate Staff Personnel must approve payment of membership dues. The General Manager must approve attendance at association meetings, conventions or annual meetings. Attendance shall be limited to one major conference per year. This limitation does not apply to workshops, seminars and courses, which the Utility directs employees to attend. The Utility will pay the attendance fee for pre - approved meetings and expenses incurred. 0I I J C Personnel Records Access and Data Privacy Employee records are maintained by the Business Manager. Information necessary to administer employee benefits and payroll and to complete required Federal and State reports are included in the personnel file. Examples of this data are: home address, off -duty telephone number, social security number, date of birth, person to notify in case of emergency, insurance and retirement beneficiaries, wage history, job category and department. Also included as personnel data are any commendations, evaluations and records of discipline. Most personnel data is classified as private data and cannot be released without the employee's written permission. Public data include: employee name, employee job titles, wage /salary history and dates of employment. Current information is necessary for proper administration of compensation and employee benefits. Employees must notify the Business Manager of any change in home address, number of withholding exemptions, beneficiary designations or any other change that would affect employment status. Any employee wishing to review his/her personnel file should contact the Business Manager to arrange a time to review the file. Only management personnel with a need to know may review an individual's personnel file. 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 Director, Manager or Supervisor, the employee may choose to file a written grievance. The grievance must be filed with the appropriate Staff Personnel within ten (10) working days after the incident - giving rise to the grievance. The Staff Personnel 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 Staff Personnel's response, the employee may file the grievance with the General Manager within five (5) days of the Staff Personnel'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 Commission. The 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. 10 Employee Conduct All Utility 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. Utility 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 Utility 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 the Utilities. • 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, Utility 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 demand a hearing or use the grievance procedure with respect to any disciplinary action believed to be unjust or disproportionate to the alleged offense. The General Manager, Director 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 11 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 the Utilities reason for termination. If requested, the Utilities 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 Utility 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, 12 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 Utility 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 - utility work related matters during work hours. O Violation of the utility'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 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 utility 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 utility employees, brings or tends to bring discredit to the utility, 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 utility time or property Y Refusal, during working hours, to submit to a Breathalyzer or other drug test required by law. Z Anyone who punches a timeclock for another employee. Conflict of Interest Employees must notify their Director of any direct or indirect financial interest they have in any contract with the Utility or any interest they have in a contractor supplying the Utility. Any employee with such a financial interest may not work on any Utility project or make any decision concerning a Utility project involving the employee's outside financial interest. Other Employment An employee's position at the Utility must take precedence over any other job an employee holds. Employees must inform their Director, Manager or Supervisor of any work they perform - for profit outside of the Utility position to ensure there is no conflict of interest between the Utility job and the outside employment. Also, employees are expected to be mentally alert and 13 physically able to perform their Utility jobs. Employees may not work on their outside employment while on duty with the Utility nor may any Utility property or equipment be used to conduct such business at any time. Employee Groups Employees are not prohibited from joining nor can employees be coerced into joining an employee group. No member of an employee group may solicit membership or conduct business or hold meetings while on duty. License Requirements for Utility Vehicle Operation An employee whose job requires operating a motor vehicle must possess a valid Minnesota Driver's License with necessary endorsements in order to conduct Utility business. If an employee's driver's license is suspended, revoked, or cancelled, the employee must immediately inform the employee's Director, Manager or Supervisor who must inform the General Manager. The General Manager shall take appropriate action including discharge, suspension, or demotion to a position that does not require vehicle operation. An acceptable driving record is a condition of employment if operation of a vehicle is an essential part of an employee's job. The Utility will annually check the status of employees' driver's licenses for those positions that require driving. Smoking Smoking is prohibited in all buildings and vehicles of the Utilities. Smoking is only permitted outside of the Utilities' facilities at designated locations. These designated locations will be marked by the placement of a Utility approved ashtray. Alcohol or Drugs Possession or consumption of alcohol or controlled substances is prohibited while on -duty or on/in any Utility 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. All Utility employees required to maintain a Commercial Drivers 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 Total Compliance Solutions Drug and Alcohol Plan as administered by Hutchinson Utilities Commission. Firearms Employees are not permitted to possess firearms or ammunition in any of the Utilities buildings, vehicles, and construction sites or while attending Utilities business - related activities off site. Such possession of firearms or ammunition may subject an employee to disciplinary action. 14 Offensive Behavior /Sexual Harassment It is the Utility's policy to maintain a work environment free from offensive behavior and sexual harassment. Offensive behavior includes any unwelcome conduct. 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 Any employee who feels he /she is being subjected to offensive or discriminatory behavior of any kind is encouraged to express their objection to the behavior and should also report the behavior to their immediate Staff Personnel. In addition to reporting the incident to Utility representatives, 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 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, the Utility will take appropriate corrective action. Retaliation against any person who files a complaint or participates in an investigation is expressly prohibited. Retirement Any employee who elects to retire shall give the Employer sixty (60) days notice of date that employee intends to retire. 15 Resignation Employees leaving employment with the Utilities 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 Staff Personnel 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 Utility property, and equipment including keys, security devices, clothing and small hand tools provided by the Utility. Solicitation on Utility Premises Salespersons offering merchandise not related to Utility business are prohibited from soliciting during normal working hours. Employees are discouraged from soliciting other employees and acceptance of an employee's offer is not mandatory for maintaining employment. Employees shall not provide another employee's home telephone number or address 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, employee's spouse, mother, father, child of an employee, flowers /plant will be sent at Utility 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 Directors, for retirees, consultants, Commission members or others. who provide significant service to the Utilities. Business Related Vehicle Operation This section applies to transporting employees for seminars, conferences and mutual aid. Air travel: If commercial travel carriers are used, it shall be at "standard class ". An employee is responsible for transportation to /from Minneapolis /St. Paul airports. If an employee uses a personal vehicle for transportation to the airports, the employee will be reimbursed for mileage at the current IRS mileage reimbursement rate. Staff Personnel must provide prior approval for any other mode of transportation such as taxi or shuttle. Only employees' expenses will be prepaid, charged, or reimbursed at cost. Hotel rooms at conventions or seminar sites are approved accommodations. Meals will be limited to a maximum of $50 /day including meal tips. This is a maximum not an allowance, and receipts must be filed with the expense report. 16 Rental vehicles may be used only with the prior approval of Staff Personnel or the General Manager. Road trip: If it is appropriate for the employee to drive instead of fly, the employee shall use a Utilities vehicle if one is available. If the employee wishes to use a personal vehicle, the employee shall be reimbursed for mileage at the current IRS mileage reimbursement rate. Staff Personnel must provide prior approval for any other mode of transportation such as taxi or rental vehicle. The employee is responsible for any traffic or parking citations the employee receives while operating a vehicle on Utility business. The Utility is not liable for damage to personally owned vehicles used for Utility business. The Utility may request proof of insurance from employees who use privately owned vehicles while conducting Utility business. Employees who drive Utility vehicles home may use the vehicles only for Utility business purposes. An itemized travel and entertainment expense report shall be filled out, with room receipts attached and all other receipts attached where possible. The expense report must state the type of expense (meal, travel, etc.) the date, and business purpose. The number of persons and a list of guests must be provided. Reimbursement is limited to employees and business related guests' expenses and must be directly related to business and reasonable. This report shall be turned into your Director or General Manager for approval. Requests for an expense account advance are allowed for travel of two or more days. Expense account advances must be reconciled with actual expenses as soon as possible. An expense account advance shall not exceed $200.00. While on out -of -town, overnight travel on Utility business, reasonable long- distance personal phone calls will be reimbursed. Employees who are members of the Hutchinson Fire Department may use a Utility vehicle to travel to the fire station to respond to a call when the firefighter is on the job with the Utility at the time of the call. If the firefighter is at the Utility center complex, the firefighter must use a personal vehicle to respond to the call. Community Advertising Hutchinson Utilities Commission will contribute up to $50, for Community Event advertising, which will promote energy conservation programs. Contributions will be available until the $300 annual fund is depleted. Contributions may be solicited once a year per organization. The software format requested must be compatible with the Utilities in -house software. 17 Petty Cash Petty cash funds are kept with the Accountant. The petty cash fund will be used to reimburse payment up to $25.00. Any expenditure over $25.00 will be reimbursed by check. Receipts must be attached to a complete 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. Section 3 HOURS AND CONDITIONS OF EMPLOYMENT Staff Personnel will establish work schedules, subject to the General Manager's approval. The regular workweek is five 8 -hour working days with two consecutive days off. The normal workweek is Monday through Friday, except as otherwise established by Staff Personnel based on the customers' and Department's needs. The Utilities office hours are as follows: Regular hours are 8:00 a.m. to 5:00 p.m. Monday through Friday. Summer hours from Memorial Day through Labor Day are 7:30 a.m. to 4:00 p.m. Monday through Friday. Flextime Program The Utilities' flextime program allows exempt employees to start and end the workday one -half hour earlier than the regular starting and quitting times. Flextime also allows exempt employees to take a one -half hour or a one -hour unpaid lunch period. Exempt employees may make changes in their flextime schedule once per month subject to approval by Staff Personnel or Directors based on the customers' and Department's needs. Rest Periods Employees may take one 15- minute paid rest period during each four -hour work period. Rest periods are taken during the second and third hours and between the sixth and seventh hours of the workday. During the summer, the afternoon rest period shall be taken when the Director deems it appropriate. Rest periods shall not be cumulative and shall not be utilized to compensate for other absences. Meal Periods Employees receive an unpaid meal period either one -half hour or one -hour long for a shift lasting at least six hours. Meal periods shall not be cumulative and shall not be utilized to compensate for other absences. Attendance/Tardiness Employees are expected to work or use approved leave for all their scheduled hours. Unsatisfactory attendance including reporting late, quitting early or excessive absenteeism shall be cause for disciplinary action. An employee anticipating being late for any reason, must contact his/her Director, Manager or Supervisor as far in advance as possible. Employees are also required to report to their Director, Manager or Supervisor if they are ill and unable to continue working. If an employee is ill and cannot report to work, the employee must notify his/her Director, Manager or Supervisor before the scheduled start of the workday. 19 Time Clocks All workers paid on an hourly basis will use time clocks. Employees must clock in/out at these times: • Beginning a work shift • End of Shift • Anytime an employee leaves the utilities facilities for other than work - related purposes. • Staff Personnel may require time clocks to be used at additional times at their discretion. Anyone who punches the timeclock for another employee will be disciplined up to an including discharge. Report for Work Employees are not allowed in Utilities facilities more than 20 minutes prior to their scheduled start time. Exceptions will only be made with prior written approval of a Director. Use of Facilities During Off -Duty Hours Employees are not allowed on -site during off -duty hours without prior approval of a Director. Inclement Weather If inclement weather causes an employee to arrive late or leave the job early, the employee must use vacation time, compensatory time or time without pay for the portion of the scheduled shift the employee did not work. If the General Manager determines it is necessary to close the Utilities offices due to weather, all employees will be paid their regular pay. Essential employees will be required to remain on -duty, however, they will be given comparable time off at a later date. If an essential employee living within the limits of the City of Hutchinson cannot get to the job site due to inclement weather, a Utility vehicle or snowplow will be dispatched to pick up the essential employee. Use of Telephones and E -mail Customer Service. Please be courteous and tactful when dealing with Utility customers and business partners so they enjoy dealing with our employees and the Utility. When receiving a call, answer promptly, explain to the caller when leaving the line, return to the line promptly, transfer calls only when necessary, give tactful explanations for a coworker's absence from the office and take accurate messages. When placing a call, plan the call in advance making sure of the number and identify yourself, including your position with the Utility. Personal Calls. During working hours employees are expected to keep the number and length of personal calls to a minimum. Any personal long distance calls should be made by calling card. If this is not possible, the long distance call must be reported to the accountant and the Utilities must be reimbursed the cost of personal long distance calls. 20 E -Mail. See the City of Hutchinson Information Technology Policy (HUC Edition). Cell Phones. Cell phones provided to employees by the Utility remain the property of the Utility. Personal calls on the cell phones must be reimbursed to the Utility the same as long distance. Personal Visitors and U.S. Mail Employees are discouraged from having personal mail delivered to the Utilities office. All incoming mail is sorted and routed at the office. Employees may not prepare personal letters during work hours. Employees are discouraged from inviting personal visitors to the office during work hours. Employees should escort personal visitors away from the work area. Time spent on personal visits will be considered part of a rest period or lunch period. 1 L 21 Section 4 WAGE AND SALARY INFORMATION Pay Period, Paydays All employees are paid every other Thursday for the two -week period ending the preceding Sunday at 12:00 midnight. Should a payday fall on a holiday, paychecks will be available the preceding day. Payroll Deductions The Utilities are required to deduct federal and state income taxes, Social Security tax, and any court- ordered deductions such as child support from paychecks. The Utilities are also required to deduct the employee's contribution to the Public Employee Retirement Association (PERA). Optional deductions may be made from a paycheck such as union dues, deferred compensation, and insurance premiums. These payroll deductions may be made only with the employee's written consent. Overtime Exempt employees may earn compensatory time on an hour - for -hour basis for all hours worked in excess of 40 hours per week, and all hours worked on a weekend except on holidays, for which compensatory time shall be earned at a rate of 1 and %2 times the base pay rate for each hour worked. Exempt employees must use their compensatory time within 6 months of earning it or it will be forfeited. Accrued compensatory time shall not be paid out to exempt employees upon separation from employment. Compensation Plan The Hutchinson Utilities Commission has considered the existing positions for Hutchinson Utilities and the current economic conditions. For each position there shall be a title; and there shall be shown examples of work which are illustrative of duties of positions, as well as requirements as to knowledge, abilities and skills necessary for performance of the work; and a statement of experience and training desirable for recruitment into a position. This plan covers all regular full -time, non -union positions /employees only. Plan Objectives To establish and maintain a compensation plan that enables Hutchinson Utilities to be highly competitive within our defined industry. To lead or exceed the market in attracting and retaining qualified, reliable and motivated employees who are committed to quality and excellence for those we serve. To ensure, subject to the financial condition of Hutchinson Utilities, that employees receive fair and equitable compensation in relation to their individual contributions to Hutchinson Utilities' success. 22 To follow the principles of pay equity in establishing and maintaining pay relationships among positions. To ensure program flexibility necessary to meet changing economic, competitive, technological, and regulatory conditions encountered by Hutchinson Utilities Commission. To balance compensation and benefit needs with available resources. Open Salary Range Hutchinson Utilities Commission shall adopt an Open Salary Range compensation plan that will allow for maximum flexibility since there are not defined or pre - calculated "steps ". Employee movement is based solely on performance. The open salary range concept rewards good and exceptional performers and advances employees to the market rate more quickly. Allocation of New Positions When a new position is created for which no appropriate description exists or when the duties of an existing position are sufficiently changed so that no appropriate description exists, the Commission, after recommendation of the Human Resources Director, shall cause an appropriate job description - specification to be written for said position. Pay Grades Exempt Employees Each position will have a nine -month probationary period. After satisfactory completion of the probationary period, an increase may be granted as warranted by the annual performance appraisal. Thereafter, consideration for increases will be given annually at the first of the year. The General Manager reserves the discretion to adjust individual rates as required. The Commission will determine any pay increase for the General Manager. Consideration for market adjustment will be made each January 1. The General Manager shall maintain the discretion to hire at any point based on the qualifications, experience, market conditions or other relevant factors, to secure the best candidate for the position. Performance Evaluations For all regular full -time employees, a performance appraisal or evaluation will be made on an annual basis. An evaluation made by the employee's supervisor shall be submitted in writing to the employee and the General Manager. All evaluations will be forwarded to the Business Manager for filing in the employee files. Evaluations shall be based upon the performance of the individual in the position measured against established job performance criteria. Such criteria may include level of knowledge, skills, ability, quality of work, personal work traits, compliance with established Hutchinson Utilities Commission or departmental rules and regulations or any other criteria that is indicative of performance. 23 The performance appraisal process is the application of performance standards to past performance. In appraising an employee, these are the basic levels of performance: 5 — Outstanding — Performance is exceptional in all areas and is recognizable as being far superior to others. 4 — Exceeds Job Requirements — Results clearly exceed most positions requirements. Performance is of high quality and is achieved on a consistent basis. 3 — Meets Job Requirements — Competent and dependable level of performance. Meets performance standards of the job. 2 — Needs Improvement — Performance is deficient in certain area(s). Improvement is necessary. 1— Unsatisfactory — Results are generally unacceptable and require immediate improvement. Results The results of the exempt employee's evaluation will normally have the following effect on his/her salary per the following Merit Increase Guide: 0 to 1.0 — 0% 1.1 to 1.99 — Straight I% increase 2.0 to 2.75 — -1% of Union % increase 2.76 to 3.5 — Union % increase 3.51 to 4.25 — +1% of Union % increase 4.26 to 5.0 — +2% of Union % increase Market Conditions Notwithstanding any language to the contrary, the Hutchinson Utilities Commission retains the right to deviate from the pay plan when, in the sole judgment of the Commission, market conditions or other circumstances dictate such a decision. Market conditions are defined as the availability of a particular position. For example: Electrical Engineer. If the market were experiencing a low number of electrical engineers, we would pay our engineer more in an attempt to keep him employed with us. Eligible employees include all non - represented employees except those who have been subject to disciplinary action per the Hutchinson Utilities Employee Handbook as follows: An additional consequence of disciplinary action more severe than oral reprimand will be the permanent loss of the January 1 market adjustment in the calendar year following such disciplinary action. This will occur unless the Director in charge and the General Manager decide otherwise. Annual Market Adjustment Consideration On an annual basis, a market survey will be reviewed. As a result of the current year marketplace, an additional increase may be deemed necessary. The General Manager maintains final approval responsibility for salary increases. 24 Any market adjustment on January 1 of any year shall be separate and apart from the individual merit increases. In determining a recommendation for an annual market adjustment, the General Manager shall consider, at least the following information: 1. U.S. and Minneapolis /St. Paul consumer priced index changes (CPIU & CPIW) 2. Social Security calculation of cost of living increase 3. Unemployment rate 4. Employee turnover rate 5. Area wage survey 6. Legislative growth factor constraints 7. Bargaining Unit Increase Modification of the Plan The Hutchinson Utilities Commission reserves the right to modify any or all of the components or to vary from any of the components of the Compensation Plan at its discretion and at any time. Review of the Plan It is recommended that the Hutchinson Utilities Commission hire a consultant to assist in an adoption of a Position Classification Plan, which would be reviewed annually by the Human Resources Director. As deemed necessary, the Human Resources Director would recommend any changes to the Commission. It is further recommended that a comprehensive review be completed every three years. Travel Expenses Travel within the State will be by Utilities vehicle if possible. Travel to and from events should be by the most direct route possible. Employees are expected to return in a timely manner during regular business hours. If commercial travel carriers are used, it shall be at "standard class." Only employees' expenses will be prepaid, charged, or reimbursed at cost. Hotel rooms at conventions or seminar sites are approved accommodations. Meals will be limited to a maximum of $50 /day including meal rips. This is a maximum, not an allowance, and receipts must be filed with the expense report. Rental vehicles may be used only with the prior approval of Staff Personnel. An itemized travel and entertainment expense report shall be filled out, with room receipts attached and all other receipts attached where possible. The expense report must state the type of expense (meal, travel, etc.) the date, and business purpose. The number of persons and a list of guests must be provided. Reimbursement is limited to employees and business related guests' expenses and must be directly related to business and reasonable. This report shall be turned into the Accountant. ..11 n 11� Requests for an expense account advance are allowed for travel of two or more days. Expense account advances must be reconciled with actual expenses as soon as possible. An expense account advance shall not exceed $200.00. While on out -of -town, overnight travel on Utility business, reasonable long- distance personal phone calls will be reimbursed. Worker's Compensation An employee who is injured on the job or becomes ill due to job - related reasons is eligible for worker's compensation benefits. The Utility's worker's compensation insurance provider will pay the employee approximately 2/3 of the weekly wage or salary lost due to injury or illness and the Utility will pay the additional 1/3 for up to 120 work days. Thereafter, the employee may use accrued sick leave, vacation leave, or compensatory time to pay the additional 1/3 lost wage or salary. PERA and FICA are not deducted from the worker's compensation portion of the paycheck. 26 Section 5 EMPLOYEE BENEFITS Vacation Exempt employees shall accrue paid vacation on the employment anniversary date according to the following schedule: Number of Years Employed Vacation 1/2 20 hours 1 40 hours 2 80 hours 7 120 hours 11 128 hours 12 136 hours 13 144 hours 14 152 hours 15 160 hours 16 168 hours 17 176 hours 18 184 hours 19 192 hours 20 200 hours Vacation may be used after completion of the probationary period. Employees must receive prior approval of their vacation requests from their Director, Manager or Supervisor. Vacation will not be granted if it unduly interferes with crew work, causes overtime pay to meet coverage requirements. A vacation request for more than one day must be submitted in person at least two workdays in advance. (For example, if an employee is scheduled to work Wednesday, Thursday, Monday and the employee wants to take Monday afternoon as vacation, the employee must submit a request in person by Wednesday afternoon.) An employee may carry over up to a maximum of one time their annual accrual of vacation into the next vacation year. Each permanent full -time employee must use at least 40 hours of vacation leave each year. Employees who are on vacation and experience a disabling accident or illness may use sick leave instead of vacation upon providing their Director, Manager or Supervisor appropriate proof of the accident or illness. Holidays Employees are eligible for holiday pay effective immediately upon hire. The Utilities will observe the following days as holidays: 27 • New Year's Day • Martin Luther King Day • President's Day 0 Memorial Day • Fourth of July Labor Day • Veteran's Day • Thanksgiving Day • Christmas Day If the holiday falls on a Sunday, the following Monday shall be the holiday. If the holiday falls on a Saturday, the preceding Friday shall be the holiday. If Christmas falls on a Tuesday, Wednesday, Thursday or Friday, then the preceding day shall be a Christmas Eve Day holiday. Additionally, there shall be two (2) floating holidays determined by mutual agreement between the employee and Director, Manager or Supervisor. If Christmas falls on a Saturday, Sunday, or Monday, there shall be no Christmas Eve Day holiday but there shall be three (3) floating holidays determined by mutual agreement between the employee and Director, Manager or Supervisor. Employees will be paid eight (8) hours straight time for each of the holidays. Temporary employees who work on a holiday will be paid at the employee's regular base pay rate and will not receive holiday pay for hours not worked. Life Insurance The Utilities provide group term life insurance with accidental death and dismemberment for all full -time employees. Information on life insurance is available in the Business Division. Health/Dental Insurance The Utilities provide an opportunity for employees to participate in a group health/dental insurance program. Employees are eligible for coverage the first of the month following hire date. Contact the Business Manager for information regarding benefits and participation levels. For information about continuation of health/dental insurance coverage after leaving Disability Insurance The Utilities pay the entire cost of a long -term disability insurance policy for all staff employees. Information on disability insurance is available through the Business Manager. Family and Medical Leave (FMLA) Pursuant to the Family and Medical Leave Act, employees are allowed up to 12 weeks unpaid leave during a 12 -month period for the following reasons: • Birth or adoption of a dependent child • Serious health condition of the employee • Convalescent care for an employee's dependent child, spouse, or parent suffering from a serious health condition To be eligible for FMLA leave, the employee must have worked at least one year for the Utility and worked at least 1,250 hours during the previous 12 months. In order to receive the FMLA leave, the employee must request the leave by providing the employee's Director, Manager or Supervisor 30 -days notice prior to the requested starting date of the leave. If 30 -days notice is not possible, the employee must provide the Director, Manager or Supervisor as much notice as possible. The Director, Manager or Supervisor will inform the General Manager of the request as soon as possible. The General Manager will provide the employee a "Medical Certificate" which must be filled out by the employee's physician and returned to the General Manager. Upon receipt of the necessary medical information, the General Manager will determine whether the employee will receive the FMLA leave. Pursuant to the FMLA, the Utility may request a second opinion from another medical provider at the Utility's expense. If the second opinion is different from the employee's physician's opinion, the Utility will seek a third opinion at the Utility's expense. The third opinion shall prevail. The 12 weeks of available FMLA leave extend over 12 months. To determine whether the employee has any FMLA leave remaining, the General Manager will look back over the 12 months preceding the request for FMLA leave. An employee may use the 12 weeks of FMLA leave intermittently over the 12 -month period if necessary and may take the leave in increments of one -hour or more. An employee on FMLA leave for serious illness of the employee, the employee's spouse, dependent child or parent will be required to use vacation or sick leave concurrent with the FMLA leave. The Utility will continue to pay its contribution toward health insurance while an employee is on FMLA leave. At the end of FMLA leave, an employee shall be returned to his/her former position or an equivalent position. For more information on FMLA leave, see the Business Manager. Parental Leave Pursuant to the Minnesota Parental Leave Act, employees who have worked for the Utility for at least 12 months and average forty (40) hours per week may take six (6) weeks unpaid leave for the birth or adoption of a child. This leave must begin within six weeks after the birth or adoption. Eligible employees must provide thirty (30) days written notice to the General Manager of their desire to take parental leave. Employees may use their paid leave banks, such as sick leave or vacation, but they are not required to do so. If the employee is also eligible for FMLA leave, the parental leave under this section and the FMLA leave will run concurrently. W Sick Leave Sick leave may be granted only for absence from duty because of personal illness, or, after completion of probationary period, for the illness of an immediate family member on the same terms the employee is able to use sick leave benefits for the employee's own illness, including appointments for necessary medical, dental or eye care, legal quarantine, or brief emergency situation (not to exceed one day) in the immediate family. Requests for sick leave consideration in case of other emergency situations may be brought to the Director. In addition, a maximum of five days sick leave may be allowed when necessary in the case of death in the immediate family. Effective January 1, 2004 sick leave shall be granted to all probationary and non - probationary employees. For full -time exempt employees, sick leave shall be granted according to the following schedule: 1. Sick leave shall accrue at eight hours per month, up to a maximum of 720 hours. After the accumulation of 720 hours, a payback of one -third of the amount over 720 hours will be made annually on or about February 1. No further payment will be made on termination of employment. 2. On retirement or upon death before retirement, a payback of one -third of the amount over 240 hours will be made. If the employee resigns or is dismissed, the above payment shall not be made. In case of death during employment, the unused sick leave shall be paid to his estate on the same ratio as above. 3. Any employee who is determined to be eligible for workers compensation benefits during absence from duty will receive such benefits in lieu of a portion of the sick leave benefit for the first 120 days of absence from duty. To be eligible for sick leave with pay, an employee shall report as soon as possible to the Director, Manager or Supervisor the reason for the absence and keep them informed of the condition. An employee may be required to submit a medical certificate for any sick leave, at the discretion of the Director, Manager or Supervisor. Using or claiming sick leave for a purpose not authorized in this section may be cause for disciplinary action. For the purpose of accumulating additional vacation or sick leave, an employee using earned vacation or sick leave is considered to be working. Employees, who are injured while engaged in after hours' employment of others or while self - employed, shall not be covered under the Utility's Sick Leave Policy outlined. Training and Education Assistance The Commission encourages its employees to seek individual and career development through job - related training and education. The Commission provides financial assistance for successful completion of qualifying programs and courses. Tuition, registration fees and other course - related fees would be reimbursed after successful completion of a course. To apply for education assistance, employees must submit a request to their Director, Manager, or Supervisor no later than five working days prior to registration. The Director, Manager or Supervisor and the General Manager must approve the course, seminar, or program. Only courses that are job- ill related and provide potential for career advancement with the Utilities are eligible for reimbursement. An employee must remain employed at the Utilities for twelve (12) calendar months after completion of a course, or must repay to the Utilities all reimbursements received for the course. Workplace Accommodation The Utility shall make workplace accommodations in accordance with state and federal law. An employee who believes he or she qualifies for a reasonable accommodation under the Americans with Disabilities Act (ADA) shall submit a request for accommodations to the General Manager. The Utility shall engage in an interactive process with employees who request accommodation in order to identify the specific physical and mental abilities and limitations as they relate to essential job functions; barriers to the performance of essential job functions; and how these barriers could be overcome with reasonable accommodation. The employee may be requested to provide written documentation from a healthcare provider relating to the employee's medical condition and request for accommodation. If an employee refuses to provide such written documentation and/or sign an authorization allowing the Utility to contact the healthcare provider, the Utility will evaluate the employee's request based on the information available to the Utility. The Utility shall, in the process of evaluating potential accommodations, determine which, if any, potential accommodations present an undue hardship to the Utility or the department in which the employee works. Unpaid Extended Leave of Absence The General Manager may grant an employee's request for an extended leave of absence without pay. The unpaid leave of absence shall be a minimum length of one month and a maximum length of six months. Employees on an extended leave of absence for one month or longer which is not governed by the FMLA, are required to pay the cost of any health, long -term disability or life insurance during the leave of the absence. Employees on unpaid leave of absence shall not earn vacation and sick leave. No employee shall bee granted a leave of absence in order to accept a different position with another employer. Acceptance of a full -time position with another employer shall be deemed a resignation of the employee's position with the Utilities. Family Death Employees may take a leave of absence with pay in the event of death in the employee's immediate family. Time allowed with pay for exempt employees may not exceed five (5) days per family member. The paid time off will not be deducted from the employee's paid leave banks. If an employee is called to participate in the funeral services for the death of a person who is not a member of the employee's immediate family, an employee will receive four hours paid leave of absence. 31 1 Emerizency Leave The General Manager may approve time off without pay to an employee who has no vacation or compensatory time available, if in the General Manager's discretion, the employee is experiencing an emergency requiring the employee's attention. Military Leave The Utilities shall comply with Minnesota statutes relating to military leave. Jury Duty An exempt employee called to jury duty will receive his/her regular pay. Employees on jury duty must endorse their jury duty payment to the Utilities except for allowable expenses and mileage. An employee is expected to report to work for whatever portion of the workday the employee is not acting as a juror. Volunteer Fire or Rescue Squad Dutv If the General Manager determines a situation is an emergency, essential employees who are also members of either the volunteer fire or rescue squad, will be asked to return to their Utility duties and assist the operation of the Utilities even beyond normal working hours. Utility employees who are called out as members of the volunteer fire or rescue squad while on duty with the Utility will be paid up to four hours regular salary while on the emergency call. Retirement Program The Utilities is a member of the State Public Employees Retirement Association ( "PERA") and also participates in the federal FICA (Social Security) program. Full -time employees must become members of PERA effective the date of employment. Both the Utility and the employee contribute to PERA. Information on PERA is available in the Business Division. Deferred Compensation The Utilities offers a 457 deferred compensation plan, which allows employees to place a portion of their earnings through payroll deduction into a tax deferred investment program. Taxes on money set aside are deferred until the time the money is withdrawn. The Utilities does not contribute to this 457 deferred compensation plan. For enrollment information, see the Business Division. Personal Use of Utility Facilities and Equipment No employee may use Utility facilities or equipment for personal use. 32 Employee Recomition Compensation In addition to any monetary remuneration that an employee may receive as part of their employment with the Hutchinson Utilities Commission and other benefits listed in this employee handbook, the employee and a guest shall be entitled to attend any annual employee recognition banquet, as compensation, sponsored by the Hutchinson Utilities Commission. Employees may also be recognized for their loyalty and years of service to Hutchinson Utilities Commission and may receive items in recognition of their years of service at the annual employee recognition banquet not to exceed the following amounts: Amount Years of Service $50 5 Years $100 10 Years $125 15 Years $150 20 Years $175 25 Years $200 30 Years $250 35 Years 33 Section 6 HEALTH AND SAFETY The Utility is very concerned about the safety of its employees and the public the Utility serves. All employees are required to follow all Utility safety rules and make the safety of themselves, their co- workers, and the public a priority. To encourage a safe workplace, The Commission has adopted the APPA — Utilities Safety Handbook. All non - exempt employees are required to read the APPA safety handbook. Compliance with the APPA is "mandatory and is considered a requirement for employment ". (Pp. 20 and 23 APPA Safety Handbook). Accidents and Injuries Employees must immediately report to a Director, Manager or Supervisor all accidents and injuries that occur during the course of employment with the Utility. The Supervisor must fill out and sign an accident report. See Business Manager for form. Pursuant to Minnesota Law, the Utilities, in conjunction with the City of Hutchinson, has established a joint labor- management safety committee that investigates or reviews all accidents to identify causes of the accidents and suggest ways to prevent reoccurrence of the accident. The safety committee may request to interview any employee involved in an accident or any employee who may have knowledge of an accident. All employees are required to cooperate with the safety committee. Unsafe Conditions or Practices Employees are required to report to a Director, Manager or Supervisor any unsafe conditions or practices they observe, including failure of a co- worker to follow safety rules or procedures. Employee Right -To -Know Minnesota's Employee Right -to -Know law requires the Utility to inform employees when they may be exposed to hazardous substances, harmful physical agents, or infectious agents. The Utility has adopted a written Employee Right -to -Know program. The Utility has evaluated and reevaluates the work sites to determine the presence of hazardous substances. Employees should become familiar with the location of MSDS sheets in their work area. OIJ ACKNOWLEDGEMENT I, acknowledge that I have received a copy of the Hutchinson Utilities Employee Handbook and that I am responsible for being familiar with its contents. I understand the Hutchinson Utilities Employee Handbook does not create a contract between Hutchinson Utilities and me. I also understand that Hutchinson Utilities may revise the contents of the Employee Handbook at its discretion. Date: Employee's Signature 35 n i I, ( "the Commission ") as Appendix B NEW EMPLOYEE ACKNOWLEDGEMENT have been hired by the Hutchinson Utilities Commission I acknowledge that I will serve a nine (9) month probationary period, ending the day of , 20 , unless the General Manager extends my probation a maximum of three (3) additional months. I understand that until my probationary period is completed, the Commission may terminate me at any time and without cause. Date: Employee's Signature 411 Appendix C TEMPORARY EMPLOYEE ACKNOWLEDGEMENT I, , have been hired by the Hutchinson Utilities Commission ("the Commission ") as , which is a temporary position. I acknowledge that this position will not exceed six (6) months and the Commission may terminate it without cause at any time. I also understand I accrue no rights to reappointment to this position if it becomes open again in the future. I understand as a temporary employee, I am not entitled to any benefits, and that I may be terminated from the position at any time and without cause. Date: 37 Employee's Signature k 1 HUTCHINSON UTILITIES COMMISSION Revised June 2006 NON - EXEMPT EMPLOYEE HANDBOOK TABLE OF CONTENTS SECTION I — INTRODUCTION What is Hutchinson Utilities Commission 4 Purpose of this Handbook 5 Definitions 5 SECTION 2 — ADMINISTRATION OF PERSONNEL POLICIES & PROCEDURES Savings Clause 7 Equal Employment Opportunity 7 Hiring Procedures 7 Probationary Period Upon Hiring g Temporary Employees g Promotions and Transfers g Layoffs 9 Voluntary Leave of Absence 9 Employment of Relatives 9 Personnel Records Access and Data Privacy 9 Complaint/Grievance Procedure 10 Employee Conduct 10 Discipline 10 Conflict of Interest 12 Other Employment 13 Employee Groups 13 License Requirements for Utility Vehicle Operation 13 Smoking 13 Alcohol or Drugs 13 Firearms 13 Offensive Behavior /Sexual Harassment 14 Retirement 14 Resignation 15 Solicitation on Utility Premises 15 Employee Gifts 15 Flowers 15 Business Related Vehicle Operation 15 Community Advertising 16 Petty Cash 17 SECTION 3 — HOURS AND CONDITIONS OF EMPLOYMENT Rest Periods 18 Meal Periods 18 Attendance/Tardiness 18 Time Clocks 18 Report for Work 18 Use of Facilities During Off -Duty Hours 19 Inclement Weather 19 Use of Telephones and E -mail 19 Personal Visitors and U.S. Mail 19 SECTION 4 — WAGE AND SALARY INFORMATION Pay Period, Paydays 20 Payroll Deductions 20 Overtime 20 2 Compensation Plan Travel Expenses Worker's Compensation SECTION 5 — EMPLOYEE BENEFITS Vacation Holidays Life Insurance Health/Dental Insurance Family and Medical Leave (FM LA) Parental Leave Sick Leave Workplace Accommodation Unpaid Extended Leave of Absence Family Death Emergency Leave Military Leave Jury Duty Volunteer Fire or Rescue Squad Duty Retirement Program Deferred Compensation Personal Use of Utility Facilities and Equipment Required Clothing Small Hand Tools Employee Recognition Compensation SECTION 6 — HEALTH AND SAFETY Accidents and Injuries Unsafe Conditions or Practices Employee Right -To -Know Safety Glasses APPENDICES Appendix A — Acknowledgement Appendix B — New Employee Acknowledgement Appendix C — Temporary Employee Acknowledgement Appendix D — Acknowledgement 20 21 21 22 22 23 23 23 24 24 24 25 25 25 25 25 25 25 26 26 26 26 26 27 27. 27 27 28 29 30 31 3 I " Section 1 INTRODUCTION We are pleased to welcome you to the Hutchinson Utilities Commission. This Handbook has been prepared to familiarize you with our operating policies and procedures as well as your responsibilities as an employee. We hope you will find your work interesting and rewarding. When you become an employee of Hutchinson Utilities Commission, you represent Hutchinson Utilities to our customers and the general public. We should strive to show the best image possible. Should you have any questions regarding policies or procedures, kindly talk with your Director or Manager. WELCOME TO HUTCHINSON UTILITIES COMMISSION WHAT IS HUTCHINSON UTILITIES COMMISSION The Municipal Electric Light Plant was established in 1935 as a result of a special election authorizing the establishment of a new generating plant and distribution system through a bond issue of $250,000 to pay for the construction. The vote was 1,187 for and 128 against. Contracts were awarded for the construction of a new power plant building at the intersection of State Highways 7 and 15. The contract included three (3) 625 hp 430 kw diesel generating units, switchboard, a complete distribution system and other auxiliary equipment. On November 28 1936, construction was completed and by January of 1937, over 600 customers were connected. By the end of March, the system was serving 1,171. The City Charter was amended in 1935 to create a Utilities Commission to manage and operate the system. In 1960, the City constructed a natural gas distribution system, buying natural gas from Northern Natural Gas Company, and selling it to the citizens of Hutchinson and the surrounding rural area. Natural gas is also used in firing the dual generating units of the light plant. Since 1936, the Hutchinson Utilities Commission, consisting of three (3) qualified voters of the City of Hutchinson, has operated the Municipal Electric Plant and the Natural Gas Distribution System. It was established by Section 17 of the City Charter that the Commissioners be appointed by the City Council, one (1) every two years, for a six year term. No Commissioner can serve more than two (2) successive terms. The Commission elects a President, Vice President, and Secretary. In November of 1987, the City Charter was amended to expand the Utilities Commission to a five (5)- member board. Each Commissioner's term will be five (5) years and no Commissioner can serve more than two (2) successive terms. 4 The City Charter gives the Commission full, absolute and exclusive control of and power over the City Light and Power Plant and the Natural Gas Distribution System. The Commission hires a General Manager to manage the day -to -day operation of the Utilities. The Hutchinson Utilities Commission has, for many years, made substantial cash contributions to the General Fund of the City of Hutchinson from surplus earnings of both the electric and gas divisions of the Utilities. Hutchinson Utilities Commission has provided and will continue to provide to its customers, electricity and natural gas at the lowest possible cost. Purpose of this Handbook The contents of this Employee Handbook are for information only. The Hutchinson Utilities Commission does not intend to create a contract by the publication and issuance of this Handbook and under no circumstances is it to be construed as a contract of employment. The Commission reserves the right to change the policies and procedures in this Handbook at any time without notice. Definitions In this Handbook, the following terms shall have the meanings as listed below: "Commission" means the Hutchinson Utilities Commission. "Essential employees" means power plant operators, system controllers, line workers, and natural gas service workers. "Exempt employees" means executive, professional and administrative employees as those terms are defined in the Fair Labor Standards Act ( "FLSA ") and who are not subject to the minimum wage and overtime provisions of the FLSA. "General Manager" means the Chief Executive of Hutchinson Utilities who is appointed by the Commission. "Immediate family" means spouse or significant other, parent, stepparent, guardian, child, stepchild, sibling, grandparent, grandchild, and any in -law. "Non- exempt employees" are employees who are generally paid hourly and are subject to the minimum wage and overtime provisions of the FLSA. "Regular full -time employee" means an employee who has been appointed to an authorized, budgeted position who is not temporary or probationary and who is regularly scheduled to work 40 hours during a work week. Generally, regular full -time employees are eligible for Utility benefit programs subject to the terms, conditions and limitations of each benefit program. "Seniority" means length of consecutive employment as a regular full -time employee with Hutchinson Utilities. 61 "Staff personnel" means Director of Electric Division, Director of Natural Gas Division, Business Manager, Manager of Electric Production, Manager of Electric Distribution, Manager of Technical Services and Accounts Supervisor. "Temporary employee" means an employee who may work up to 40 hours per week but for a maximum of 24 weeks per year, even if not consecutive weeks. Temporary positions are eligible for legally mandated benefits such as Social Security but are ineligible for Utility benefit programs. "Utility" and "Utilities" means Hutchinson Utilities. "Working days" means Monday through Friday. 0 Section 2 ADMINISTRATION OF PERSONNEL POLICIES AND PROCEDURES 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 past practice, in which case the Union 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 Refer to HUC Affirmative Action Plan adopted June 1989 Hiring Procedures It is the Commission's policy to hire qualified applicants through internal employee promotion and external recruitment if appropriate. Notice of all vacancies or positions shall be posted ten (10) working days within all Utility departments and also advertised externally where appropriate. All applications must be submitted to the General Manager no later than the final day for closing of applications. The appropriate Director shall review applicant qualifications and develop criteria to determine eligibility, assuring compliance with the Veterans Preference law. The Director shall arrange for interviews of qualified applicants. If there are fewer than three (3) applicants, the hiring process shall be referred to the General Manager. In addition to interviews, the hiring process may include any of the following: • Abilities, skills or job knowledge tests. All such tests must be job - related and must be `. administered to all applicants. 7 • Examination of the applicant's criminal conviction history. Applicants will be provided a list of probable and mandatory disqualifying convictions. • Examination of the applicant's driving record for those positions requiring operation of Utility vehicles. Applicants will be provided a list of probable and mandatory disqualifying convictions. • Contact of employment references. • Verification of education or training. • A medical examination may be required after a job offer has been extended to an applicant that is conditioned upon the applicant passing the medical examination. The medical examination must be job - related and aimed at determining whether the applicant is fit for employment in a particular position. The General Manager shall send the successful applicant a letter confirming the terms of employment. 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 all Commissioners. Final interviews for Director positions will be conducted by the General Manager and the President of the Commission. 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 employee should discuss progress with the employee's Director or Manager and become fully acquainted with the job and co- workers. The Commission 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 Director or Manager must inform the General Manager of the desire to employ a temporary worker longer than 14 weeks. Promotions and Transfers The Commission 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 employees shall serve a six (6) month probationary period during which time the promoted employee may be placed back in the employee's previous job classification at the sole discretion of the Staff Personnel, without loss of seniority. We encourage employees to discuss their career plans and goals with their Director or Manager. Layoffs The Utility retains its right to eliminate positions within the organization if the Commission deems it appropriate to do so. If a layoff occurs, the Utility 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 The Utilities 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 a Utilities employee, a Commission member, a Hutchinson City Council member or other City employees and officials. Any Utilities employee who extends such preferential treatment is subject to discipline. No two members of an immediate family may work within the same Utilities department. No member of the immediate family of the General Manager or a current member of the Commission may be employed by the Utilities. A former Commission member may not be hired as an employee of the Utilities for two years after the end of the Commissioner's term in office. Employment relationships in existence prior to adoption of this policy may be continued. Personnel Records Access and Data Privacy Employee records are maintained by the Business Manager. Information necessary to administer employee benefits and payroll and to complete required Federal and State reports are included in the personnel file. Examples of this data are: home address, off -duty telephone number, social security number, date of birth, person to notify in case of emergency, insurance and retirement beneficiaries, wage history, job category and department. Also included as personnel data are any commendations, evaluations and records of discipline. Most personnel data is classified as private data and cannot be released without the employee's written permission. Public data include: employee name, employee job titles, wage /salary history and dates of employment. Current information is necessary for proper administration of compensation and employee benefits. Employees must notify the Business Manager of any change in home address, number of withholding exemptions, beneficiary designations or any other change that would affect employment status. 9 Any employee wishing to review his/her personnel file should contact the Business Manager to arrange a time to review the file. Only management personnel with a need to know may review an individual's personnel file. See Union Contract. Complaint/Grievance Procedure Employee Conduct All Utility 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. Utility 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 Utility 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 the Utilities. • 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, Utility 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 demand a hearing or use the grievance procedure with respect to any disciplinary action believed to be unjust or disproportionate to the alleged offense. The General Manager, Director 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. 10 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 the Utilities reason for termination. If requested, the Utilities 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 11 r 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 Utility 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 Utility 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 - utility work related matters during work hours. O Violation of the utility'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 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 utility 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 utility employees, brings or tends to bring discredit to the utility, 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 utility time or property Y Refusal, during working hours, to submit to a Breathalyzer or other drug test required by law. Z Anyone who punches a timeclock for another employee. Conflict of Interest Employees must notify their Director of any direct or indirect financial interest they have in any contract with the Utility or any interest they have in a contractor supplying the Utility. Any employee with such a financial interest may not work on any Utility project or make any decision concerning a Utility project involving the employee's outside financial interest. 12 Other Employment An employee's position at the Utility must take precedence over any other job an employee holds. Employees must inform their Director or Manager of any work they perform for profit outside of the Utility position to ensure there is no conflict of interest between the Utility job and the outside employment. 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 the Utility nor may any Utility property or equipment be used to conduct such business at any time. Employee Groups Employees are not prohibited from joining nor can employees be coerced into joining an employee group. No member of an employee group may solicit membership or conduct business or hold meetings while on duty. License Requirements for Utility Vehicle Operation An employee whose job requires operating a motor vehicle must possess a valid Minnesota Driver's License with necessary endorsements in order to conduct Utility business. If an employee's driver's license is suspended, revoked, or cancelled, the employee must immediately inform the employee's Director or Manager who must inform the General Manager. The General Manager shall take appropriate action including discharge, suspension, or demotion to a position that does not require vehicle operation. An acceptable driving record is a condition of employment if operation of a vehicle is an essential part of an employee's job. The Utility will annually check the status of employees' driver's licenses for those positions that require driving. Smoking Smoking is prohibited in all buildings and vehicles of the Utilities. Smoking is only permitted outside of the Utilities' facilities at designated locations. These designated locations will be marked by the placement of a Utility approved ashtray. Alcohol or Drugs Possession or consumption of alcohol or controlled substances is prohibited while on -duty or on/in any Utility 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. All Utility employees required to maintain a Commercial Drivers 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 Total Compliance Solutions Drug and Alcohol Plan as administered by Hutchinson Utilities Commission. Firearms Employees are not permitted to possess firearms or ammunition in any of the Utilities buildings, vehicles, and construction sites or while attending Utilities business- related activities off site. Such possession of firearms or ammunition may subject an employee to disciplinary action. 13 Offensive Behavior /Sexual Harassment It is the Utility's policy to maintain a work environment free from offensive behavior and sexual harassment. Offensive behavior includes any unwelcome conduct. 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 Any employee who feels he /she is being subjected to offensive or discriminatory behavior of any kind is encouraged to express their objection to the behavior and should also report the behavior to their immediate Staff Personnel. In addition to reporting the incident to Utility representatives, 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 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, the Utility will take appropriate corrective action. Retaliation against any person who files a complaint or participates in an investigation is expressly prohibited. Retirement Any employee who elects to retire shall give the Employer sixty (60) days notice of date that employee intends to retire. 14 Resignation Employees leaving employment with the Utilities 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 Staff Personnel 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 Utility property, and equipment including keys, security devices, clothing and small hand tools provided by the Utility. Solicitation on Utility Premises Salespersons offering merchandise not related to Utility business are prohibited from soliciting during normal working hours. Employees are discouraged from soliciting other employees and acceptance of an employee's offer is not mandatory for maintaining employment. Employees shall not provide another employee's home telephone number or address 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, employee's spouse, mother, father, child of an employee, flowers /plant will be sent at Utility 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 Directors, for retirees, consultants, Commission members or others who provide significant service to the Utilities. Business Related Vehicle Operation This section applies to transporting employees for seminars, conferences and mutual aid. Air travel: If commercial travel carriers are used, it shall be at "standard class ". An employee is responsible for transportation to /from Minneapolis /St. Paul airports. If an employee uses a personal vehicle for transportation to the airports, the employee will be reimbursed for mileage at the current IRS mileage reimbursement rate. Staff Personnel must provide prior approval for any other mode of transportation such as taxi or shuttle. Only employees' expenses will be prepaid, charged, or reimbursed at cost. Hotel rooms at conventions or seminar sites are approved accommodations. Meals will be limited to a maximum of $50 /day including meal tips. This is a maximum not an allowance, and receipts must be filed with the expense report. 15 Rental vehicles may be used only with the prior approval of Staff Personnel or the General Manager. Road trip: If it is appropriate for the employee to drive instead of fly, the employee shall use a Utilities vehicle if one is available. If the employee wishes to use a personal vehicle, the employee shall be reimbursed for mileage at the current IRS mileage reimbursement rate. Staff Personnel must provide prior approval for any other mode of transportation such as taxi or rental vehicle. The employee is responsible for any traffic or parking citations the employee receives while operating a vehicle on Utility business. The Utility is not liable for damage to personally owned vehicles used for Utility business. The Utility may request proof of insurance from employees who use privately owned vehicles while conducting Utility business. Employees who drive Utility vehicles home may use the vehicles only for Utility business purposes. An itemized travel and entertainment expense report shall be filled out, with room receipts attached and all other receipts attached where possible. The expense report must state the type of expense (meal, travel, etc.) the date, and business purpose. The number of persons and a list of guests must be provided. Reimbursement is limited to employees and business related guests' expenses and must be directly related to business and reasonable. This report should be turned into your Manager. Requests for an expense account advance are allowed for travel of two or more days. Expense account advances must be reconciled with actual expenses as soon as possible. An expense account advance shall not exceed $200.00. While on out -of -town, overnight travel on Utility business, reasonable long- distance personal phone calls will be reimbursed. Employees who are members of the Hutchinson Fire Department may use a Utility vehicle to travel to the fire station to respond to a call when the firefighter is on the job with the Utility at the time of the call. If the firefighter is at the Utility center complex, the firefighter must use a personal vehicle to respond to the call. Community Advertising Hutchinson Utilities Commission will contribute up to $50, for Community Event advertising, which will promote energy conservation programs. Contributions will be available until the $300 annual fund is depleted. Contributions may be solicited once a year per organization. The software format requested must be compatible with the Utilities in -house software. 16 Petty Cash Petty cash funds are kept with the Accountant. The petty cash fund will be used to reimburse payment up to $25.00. Any expenditure over $25.00 will be reimbursed by check. Receipts must be attached to a complete 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. i 17 1 See Union Contract Section 3 HOURS AND CONDITIONS OF EMPLOYMENT Rest Periods Employees may take one 15- minute paid rest period during each four -hour work period. Rest periods are taken during the second and third hours and between the sixth and seventh hours of the workday. During the summer, the afternoon rest period shall be taken when the Director deems it appropriate. Rest periods shall not be cumulative and shall not be utilized to compensate for other absences. Meal Periods Employees receive an unpaid meal period of one -half hour for a shift lasting at least six hours. Meal periods may not be cumulative and may not be utilized to compensate for other absences. Attendance/Tardiness Employees are expected to work or use approved leave for all their scheduled hours. Unsatisfactory attendance including reporting late, quitting early or excessive absenteeism shall be cause for disciplinary action. An employee anticipating being late for any reason, must contact his/her Director or Manager as far in advance as possible. Employees are also required to report to the Director or Manager if they are ill and unable to continue working. If an employee is ill and cannot report to work, the employee must notify his/her Director or Manager before the scheduled start of the workday. Time Clocks All workers paid on an hourly basis will use time clocks. Employees must clock in/out at these times: • Beginning a work shift • End of Shift • Anytime an employee leaves the utilities facilities for other than work - related purposes. • Staff Personnel may require time clocks to be used at additional times at their discretion. Anyone who punches a timeclock for another employee will be disciplined up to an including discharge. Report for Work Employees are not allowed in Utilities facilities more than 20 minutes prior to their scheduled start time. Exceptions will only be made with prior written approval of a Director. Use of Facilities During Off -Duty Hours Employees are not allowed on -site during off -duty hours without prior approval of a Director. Inclement Weather If inclement weather causes an employee to arrive late or leave the job early, the employee must use vacation time, compensatory time or time without pay for the portion of the scheduled shift the employee did not work. If the General Manager determines it is necessary to close the Utilities offices due to weather, all employees will be paid their regular pay. Essential employees will be required to remain on -duty, however, they will be given comparable time off at a later date. If an essential employee living within the limits of the City of Hutchinson cannot get to the job site due to inclement weather, a Utility vehicle or snowplow will be dispatched to pick up the essential employee. Use of Telephones and E -mail Customer Service. Please be courteous and tactful when dealing with Utility customers and business partners so they enjoy dealing with our employees and the Utility. When receiving a call, answer promptly, explain to the caller when leaving the line, return to the line promptly, transfer calls only when necessary, give tactful explanations for a coworker's absence from the office and take accurate messages. When placing a call, plan the call in advance making sure of the number and identify yourself, including your position with the Utility. Personal Calls. During working hours employees are expected to keep the number and length of personal calls to a minimum. Any personal long distance calls should be made by calling card. If this is not possible, the long distance call must be reported to the accountant and the Utilities must be reimbursed the cost of personal long distance calls. E -Mail. See the City of Hutchinson Information Technology Policy (HUC Edition). Cell Phones. Cell phones provided to employees by the Utility remain the property of the Utility. Personal calls on the cell phones must be reimbursed to the Utility the same as long distance. Personal Visitors and U.S. Mail Employees are discouraged from having personal mail delivered to the Utilities office. All incoming mail is sorted and routed at the office. Employees may not prepare personal letters during work hours. Employees are discouraged from inviting personal visitors to the office during work hours. Employees should escort personal visitors away from the work area. Time spent on personal visits will be considered part of a rest period or lunch period. 19 Section 4 WAGE AND SALARY INFORMATION Pay Period, Paydays All employees are paid every other Thursday for the two -week period ending the preceding Sunday at 12:00 midnight. Should a payday fall on a holiday, paychecks will be available the preceding day. Payroll Deductions The Utilities are required to deduct federal and state income taxes, Social Security tax, and any court- ordered deductions such as child support from paychecks. The Utilities are also required to deduct the employee's contribution to the Public Employee Retirement Association (PERA). Optional deductions may be made from a paycheck such as union dues, deferred compensation, and insurance premiums. These payroll deductions may be made only with the employee's written consent. Overtime See Union Contract. Compensation Plan Performance Evaluations For all regular full -time employees, a performance appraisal or evaluation will be made on an annual basis. An evaluation made by the employee's Manager will be submitted in writing to the employee and the General Manager. All evaluations will be forwarded to the Business Manager for filing in the employee files. Evaluations shall be based upon the performance of the individual in the position measured against established job performance criteria. Such criteria may include level of knowledge, skills, ability, quality of work, personal work traits, compliance with established Hutchinson Utilities Commission or departmental rules and regulations or any other criteria that is indicative of performance. The performance appraisal process is the application of performance standards to past performance. In appraising an employee, these are the basic levels of performance: 5 — Outstanding — Performance is exceptional in all areas and is recognizable as being far superior to others. 4 — Exceeds Job Requirements — Results clearly exceed most positions requirements. Performance is of high quality and is achieved on a consistent basis. 3 — Meets Job Requirements — Competent and dependable level of performance. Meets performance standards of the job. 20 2 — Needs Improvement — Performance is deficient in certain area(s). Improvement is necessary. 1— Unsatisfactory — Results are generally unacceptable and require immediate improvement. Travel Expenses Travel within the State will be by Utilities vehicle if possible. Travel to and from events should be by the most direct route possible. Employees are expected to return in a timely manner during regular business hours. If commercial travel carriers are used, it shall be at "standard class." Only employees' expenses will be prepaid, charged, or reimbursed at cost. Hotel rooms at conventions or seminar sites are approved accommodations. Meals will be limited to a maximum of $50 /day including meal tips. This is a maximum, not an allowance, and receipts must be filed with the expense report. Rental vehicles may be used only with the prior approval of Staff Personnel. An itemized travel and entertainment expense report shall be filled out, with room receipts attached and all other receipts attached where possible. The expense report must state the type of expense (meal, travel, etc.) the date, and business purpose. The number of persons and a list of guests must be provided. Reimbursement is limited to employees and business related guests' expenses and must be directly related to business and reasonable. This report shall be turned into the Accountant. Requests for an expense account advance are allowed for travel of two or more days. Expense account advances must be reconciled with actual expenses as soon as possible. An expense account advance shall not exceed $200.00. While on out -of -town, overnight travel on Utility business, reasonable long - distance personal phone calls will be reimbursed. Worker's Compensation An employee who is injured on the job or becomes ill due to job - related reasons is eligible for worker's compensation benefits. The Utility's worker's compensation insurance provider will pay the employee approximately 2/3 of the weekly wage or salary lost due to injury or illness and the Utility will pay the additional 1/3 for up to 120 work days. Thereafter, the employee may use accrued sick leave, vacation leave, or compensatory time to pay the additional 1/3 lost wage or salary. PERA and FICA are not deducted from the worker's compensation portion of the paycheck. U, 21 Section 5 EMPLOYEE BENEFITS Vacation See Union Contract. Vacation may be used after completion of the probationary period. Employees must receive prior approval of their vacation requests from their Director or Manager. Vacation will not be granted if it unduly interferes with crew work, causes overtime pay to meet coverage requirements. A vacation request for more than %2 day must be submitted in person at least two workdays in advance. (For example, if an employee is scheduled to work Wednesday, Thursday, Monday and the employee wants to take Monday afternoon as vacation, the employee must submit a request in person by Wednesday afternoon.) An employee may carry over up to a maximum of one time their annual accrual of vacation into the next vacation year. Each permanent full -time employee must use at least 40 hours of vacation leave each year. Employees who are on vacation and experience a disabling accident or illness may use sick leave instead of vacation upon providing their Director or Manager appropriate proof of the accident or illness. Holidays Employees are eligible for holiday pay effective immediately upon hire. The Utilities will observe the following days as holidays: • New Year's Day • President's Day • Memorial Day • Fourth of July • Labor Day • Veteran's Day • Thanksgiving Day • Christmas Day If the holiday falls on a Sunday, the following Monday shall be the holiday. If the holiday falls on a Saturday, the preceding Friday shall be the holiday. If Christmas falls on a Tuesday, Wednesday, Thursday or Friday, then the preceding day shall be a Christmas Eve Day holiday. Additionally, there shall be two (2) floating holidays determined by mutual agreement between the employee and Director or Manager. If Christmas falls on a Saturday, Sunday, or Monday, there shall be no Christmas Eve Day holiday but there shall be three (3) floating holidays determined by mutual agreement between the employee and Director or Manager. 22 In accordance with Minnesota Statutes, the Utility daily operation shall be closed on Martin Luther King Day. Employees will be paid eight (8) hours straight time for each of the holidays. However, those employees governed by the Memorandum of Agreement, must comply with section 13.2 of that Agreement. Temporary employees who work on a holiday will be paid at the employee's regular base pay rate and will not receive holiday pay for hours not worked. Life Insurance The Utilities provide group term life insurance with accidental death and dismemberment for all full -time employees. Information on life insurance is available in the Business Division. Health /Dental Insurance The Utilities provide an opportunity for employees to participate in a group health/dental insurance program. Employees are eligible for coverage the first of the month following hire date. Contact the Business Manager for information regarding benefits and participation levels. For information about continuation of health/dental insurance coverage after leaving Utility employment, see the Business Manager Family and Medical Leave (FMLA) Pursuant to the Family and Medical Leave Act, employees are allowed up to 12 weeks unpaid leave during a 12 -month period for the following reasons: • Birth or adoption of a dependent child • Serious health condition of the employee • Convalescent care for an employee's dependent child, spouse, or parent suffering from a serious health condition To be eligible for FMLA leave, the employee must have worked at least one year for the Utility and worked at least 1,250 hours during the previous 12 months. In order to receive the FMLA leave, the employee must request the leave by providing the employee's Director or Manager 30 -days notice prior to the requested starting date of the leave. If 30 -days notice is not possible, the employee must provide the Director or Manager as much notice as possible. The Director or Manager will inform the General Manager of the request as soon as possible. The General Manager will provide the employee a "Medical Certificate" which must be filled out by the employee's physician and returned to the General Manager. Upon receipt of the necessary medical information, the General Manager will determine whether the employee will receive the FMLA leave. Pursuant to the FMLA, the Utility may request a second opinion from another medical provider at the Utility's expense. If the second opinion is different from the employee's physician's opinion, the Utility will seek a third opinion at the Utility's expense. The third opinion shall prevail. 23 The 12 weeks of available FMLA leave extend over 12 months. To determine whether the employee has any FMLA leave remaining, the General Manager will look back over the 12 months preceding the request for FMLA leave. An employee may use the 12 weeks of FMLA leave intermittently over the 12 -month period if necessary and may take the leave in increments of one -hour or more. An employee on FMLA leave for serious illness of the employee, the employee's spouse, dependent child or parent will be required to use vacation or sick leave concurrent with the FMLA leave. The Utility will continue to pay its contribution toward health insurance while an employee is on FMLA leave. At the end of FMLA leave, an employee shall be returned to his/her former position or an equivalent position. For more information on FMLA leave, see the Business Manager. Parental Leave Pursuant to the Minnesota Parental Leave Act, employees who have worked for the Utility for at least 12 months and average forty (40) hours per week may take six (6) weeks unpaid leave for the birth or adoption of a child. This leave must begin within six weeks after the birth or adoption. Eligible employees must provide thirty (30) days written notice to the General Manager of their desire to take parental leave. Employees may use their paid leave banks, such as sick leave or vacation, but they are not required to do so. If the employee is also eligible for FMLA leave, the parental leave under this section and the FMLA leave will run concurrently. See Union Contract. Sick Leave Workplace Accommodation The Utility shall make workplace accommodations in accordance with state and federal law. An employee who believes he or she qualifies for a reasonable accommodation under the Americans with Disabilities Act (ADA) shall submit a request for accommodations to the General Manager. The Utility shall engage in an interactive process with employees who request accommodation in order to identify the specific physical and mental abilities and limitations as they relate to essential job functions; barriers to the performance of essential job functions; and how these barriers could be overcome with reasonable accommodation. The employee may be requested to provide written documentation from a healthcare provider relating to the employee's medical condition and request for accommodation. If an employee refuses to provide such written documentation and/or sign an authorization allowing the Utility to contact the healthcare provider, the Utility will evaluate the employee's request based on the information available to the Utility. The Utility shall, in the process of evaluating potential accommodations, determine which, if any, potential accommodations present an undue hardship to the Utility or the department in which the employee works. 24 Unpaid Extended Leave of Absence The General Manager may grant an employee's request for an extended leave of absence without pay. The unpaid leave of absence shall be a minimum length of one month and a maximum length of six months. Employees on an extended leave of absence for one month or longer which is not governed by the FMLA, are required to pay the cost of any health, long -term disability or life insurance during the leave of the absence. Employees on unpaid leave of absence shall not earn vacation and sick leave. No employee shall bee granted a leave of absence in order to accept a different position with another employer. Acceptance of a full -time position with another employer shall be deemed a resignation of the employee's position with the Utilities. See Union Contract. Family Death Emergency Leave The General Manager may approve time off without pay to an employee who has no vacation or compensatory time available, if in the General Manager's discretion, the employee is experiencing an emergency requiring the employee's attention. Military Leave The Utilities shall comply with Minnesota statutes relating to military leave. Jury Duty A non - exempt employee called to jury duty will receive his/her regular pay. Employees on jury duty must endorse their jury duty payment to the Utilities except for allowable expenses and mileage. An employee is expected to report to work for whatever portion of the workday the employee is not acting as a juror. Volunteer Fire or Rescue Squad Duty If the General Manager determines a situation is an emergency, essential employees who are also members of either the volunteer fire or rescue squad, will be asked to return to their Utility duties and assist the operation of the Utilities even beyond normal working hours. Utility employees who are called out as members of the volunteer fire or rescue squad while on duty with the Utility will be paid up to four hours regular salary while on the emergency call. Retirement Program The Utilities is a member of the State Public Employees Retirement Association ( "PERA ") and rt also participates in the federal FICA (Social Security) program. Full -time employees must become members of PERA effective the date of employment. Both the Utility and the employee contribute to PERA. Information on PERA is available in the Business Division. 25 Deferred Compensation The Utilities offers a 457 deferred compensation plan which allows employees to place a portion of their earnings through payroll deduction into a tax deferred investment program. Taxes on money set aside are deferred until the time the money is withdrawn. The Utilities does not contribute to this 457 deferred compensation plan. For enrollment information, see the Business Division. Personal Use of Utility Facilities and Equipment No employee may use Utility facilities or equipment for personal use. Required Clothing The Utility will provide employees required uniforms and safety clothing at no cost to the employee. This clothing may differ by Department. See Staff Personnel for a list of the clothing the Utility will provide to those employees. All clothing issued to employees by the Utility may only be worn while the employee is on -duty for the Utility. Failure to wear flame resistant clothing at the appropriate times is a violation of the Utilities policy and will subject the employee to discipline. Small Hand Tools Effective January 1, 2004 the Utilities shall furnish the hand tools specified by the Director as necessary to perform the employee's job duties. The Utilities will replace any small tools damaged or broken on the job. The damaged hand tool must be turned into the employee's Director. It is the responsibility of the employee to replace any missing hand tools. Employee Recognition Compensation In addition to any monetary remuneration that an employee may receive as part of their employment with the Hutchinson Utilities Commission and other benefits listed in this employee handbook, the employee and a guest shall be entitled to attend any annual employee recognition banquet, as compensation, sponsored by the Hutchinson Utilities Commission. Employees may also be recognized for their loyalty and years of service to Hutchinson Utilities Commission and may receive items in recognition of their years of service at the annual employee recognition banquet not to exceed the following amounts: Amount Years of Service $50 5 Years $100 10 Years $125 15 Years $150 20 Years $175 25 Years $200 30 Years $250 35 Years 26 Section 6 HEALTH AND SAFETY The Utility is very concerned about the safety of its employees and the public the Utility serves. All employees are required to follow all Utility safety rules and make the safety of themselves, their co- workers, and the public a priority. To encourage a safe workplace, The Commission has adopted the APPA — Utilities Safety Handbook. All non - exempt employees are required to read the APPA safety handbook. Compliance with the APPA is "mandatory and is considered a requirement for employment ". (Pp. 20 and 23 APPA Safety Handbook). Accidents and Iniuries Employees must immediately report to a Director or Manager all accidents and injuries that occur during the course of employment with the Utility. The Manager must fill out and sign an accident report. See Business Manager for form. Pursuant to Minnesota Law, the Utilities, in conjunction with the City of Hutchinson, has established a joint labor - management safety committee that investigates or reviews all accidents to identify causes of the accidents and suggest ways to prevent reoccurrence of the accident. The safety committee may request to interview any employee involved in an accident or any employee who may have knowledge of an accident. All employees are required to cooperate with the safety committee. Unsafe Conditions or Practices Employees are required to report to a Director or Manager any unsafe conditions or practices they observe, including failure of a co- worker to follow safety rules or procedures. Employee Right -To -Know Minnesota's Employee Right -to -Know law requires the Utility to inform employees when they may be exposed to hazardous substances, harmful physical agents, or infectious agents. The Utility has adopted a written Employee Right -to -Know program. The Utility has evaluated and reevaluates the work sites to determine the presence of hazardous substances. Employees should become familiar with the location of MSDS sheets in their work area. Safety Glasses Employees must pay for their own examination (health insurance will cover 80% of examination expense). Any supplier who can provide certificate that the glasses meet OSHA requirements may fill the prescription. It is recommended that employees fill their prescriptions at any optical department who accepts the Minnesota State Contract. 27 ACKNOWLEDGEMENT 1, acknowledge that I have received a copy of the Hutchinson Utilities Employee Handbook and that I am responsible for being familiar with its contents. I understand the Hutchinson Utilities Employee Handbook does not create a contract between Hutchinson Utilities and me. I also understand that Hutchinson Utilities may revise the contents of the Employee Handbook at its discretion. Date: Employee's Signature Appendix B NEW EMPLOYEE ACKNOWLEDGEMENT I, , have been hired by the Hutchinson Utilities Commission ( "the Commission ") as . I acknowledge that I will serve a six (6) month probationary period, ending the day of 20 the General Manager extends my probation a maximum of three (3) additional months. I understand that until my probationary period is completed, the Commission may terminate me at any time and without cause. Date: Employee's Signature 29 1 Appendix C TEMPORARY EMPLOYEE ACKNOWLEDGEMENT I, , have been hired by the Hutchinson Utilities Commission ( "the Commission ") as , which is a temporary position. I acknowledge that this position will not exceed six (6) months and the Commission may terminate it without cause at any time. I also understand I accrue no rights to reappointment to this position if it becomes open again in the future. I understand as a temporary employee, I am not entitled to any benefits, and that I may be terminated from the position at any time and without cause. Date: �J Employee's Signature 30 Appendix D ACKNOWLEDGEMENT I, acknowledge that I have received a copy of the APPA- Utilities Safety Handbook and that I am responsible for being familiar with its contents. I understand I must follow all safety rules and regulations in the APPA Safety Handbook and any other safety rules adopted by Hutchinson Utilities. Date: Employee's Signature 31 ( I POLICY UPDATE TO BUSINESS RELATED VEHICLE OPERATION June 1, 2001 The following is the update to the policy regarding transportation of employees for the following purposes: a) Training Seminars b) Conferences c) Mutual Aid If air travel is required, employee(s) shall be responsible for their transportation to /from the airport. If employee utilizes a personal vehicle, he /she shall be reimbursed at current IRS rates. Prior approval must be received from the Department Manager for any other modes of transportation (i.e. taxi, shuttles). If the Department Manager deems it necessary for the employee(s) to drive to the above - mentioned events, the following options are available: 1) if available, the Department Manager shall provide a HUC vehicle, or 2) if no HUC vehicle is available, employee shall provide his /her own transportation. If employee uses a personal vehicle he /she shall be reimbursed at current IRS rates. Prior approval must be received from the Department Manager for any other modes of transportation (i.e. taxi, shuttles). Travel Expenses Travel within the State will be by Utilities vehicle if possible. Travel to and from events should be by the most direct route possible. Employees are expected to return in a timely manner during regular business hours. If commercial travel carriers are used, it shall be at "standard class." Only employees' expenses will be prepaid, charged, or reimbursed at cost. Hotel rooms at conventions or seminar sites are approved accommodations. Meals will be limited to a maximum of $50 /day including meal tips. This is a maximum not an allowance, and receipts must be filed with the expense report. Rental vehicles may be used only with the prior approval of Staff Personnel or the General Manager. An itemized travel and entertainment expense report shall be filled out, with room receipts attached and all other receipts attached where possible. The expense report must state the type of expense (meal, travel, etc.) the date, and business purpose. The number of persons and a list of guests must be provided. Reimbursement is limited to employees and business related guests' expenses and must be directly related to business and reasonable. This report shall be turned into the Business Division. Requests for an expense account advance are allowed for travel of two or more days. Expense account advances must be reconciled with actual expenses as soon as possible. An expense account advance shall not exceed $200.00. While on out -of -town, overnight travel on Utility business, reasonable long - distance personal phone calls will be reimbursed. Rev. 8/27/03 20 aw+ we w. 3 O W — 'm u m � �, � a p p m ° 9 S ? m� N b '< g p N � O a °f o � c O o e CL »o 0 .0 a� m � m m v H 1a y? F 2 S S m Z e �g S 3 � m �a 0. O e 0 n o P O O r °ySWS' m C 6 a ti H H P a M N fig � z ro e � 5-°°188' 0O n� °vys d 5�rPW� U O $ O 7 $ A W H 0 0 0 o n r. 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