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09-29-2010 HUCMRegular Meeting September 29, 2010 Members present: President Dwight Bordson; Vice President Robert Hantge, Secretary Craig Lenz; Commissioner Donald H. Walser; Commissioner Paul Nordin; Attorney Marc Sebora; General Manager Michael Kumm President Bordson called the meeting to order at 3:00 p.m. The minutes of the August 25, 2010 regular meeting were reviewed. A motion was made by Secretary Lenz, seconded by Commissioner Walser to approve the minutes as written. Motion was unanimously carried. The August 2010 payables were discussed. A motion was made by Vice President Hantge, seconded by Commissioner Nordin to ratify the payment of bills in the amount of $3,722,792.93 (detailed listing in payables book). Motion was unanimously carried. GM Kumm presented the August 2010 financial statements /budget year -to -date. After discussion, a motion was made by Secretary Lenz, seconded by Commissioner Nordin to approve the August 2010 financial statements /budget year -to -date. Motion was unanimously carried. John Webster presented the Century Avenue water tower lease agreement with City and the MNSCU access agreement with Ridgewater College. The Century Avenue water tower lease agreement with the City is the same as the Golf Course Road water tower lease agreement with City, allowing us to install antenna for the AMI project. The MNSCU access agreement with Ridgewater College is giving us authorization to go onto their property to install the necessary equipment to support the AMI project. A motion was made by Commissioner Walser, seconded by Secretary Lenz to approve the Century Avenue water tower lease agreement with City and to approve the MNSCU Access Agreement with Ridgewater College. Motion was unanimously carried. (Agreements attached.) The changes to the parallel generation policy, tabled from August 25, 2010 regular meeting, were tabled again. Attorney Sebora will review policy and present recommended language changes at the October meeting. GM Kumm presented the contract for parallel generation with Joseph Wassman. A motion was made by Vice President Hantge seconded by Commissioner Nordin by approve contract for parallel generation with Joseph Wassman. Motion was unanimously carried. (Contract attached.) GM Kumm presented changes to the exempt and non - exempt handbooks, sections: other employment — non exempt only; and employee groups — exempt and non - exempt. The change to the section `other employment' — non exempt only, is to add the word `supervisor' to the second sentence. A motion was made by Commissioner Walser, seconded by Secretary Lenz to approve the changes to the section `other employment' — non - exempt only. Motion was unanimously carried. (Changes attached.) The change recommended to the section `employee groups' — exempt and non - exempt is to rescind that policy. After discussion a motion was made by Secretary Lenz, seconded by Commissioner Walser to rescind the section, `employee groups' — exempt and non- exempt. Motion was unanimously carried. (Changes attached.) GM Kumm presented for review the exempt and non - exempt handbooks, sections: conflict of interest and discipline. The commission board recommended adding additional language to the section conflict of interest; with the last sentence to read: `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, unless the interest has been disclosed.' A motion was made by Commissioner Walser, seconded by Commissioner Nordin to approve the section conflict of interest, to both the exempt and non - exempt handbooks with the recommended additional language. Motion was unanimously carried. (Changes attached.) Also, the commission board recommended adding additional language to the section discipline; item Q to read: `Violations of the provisions of this Handbook, and / or policies.' A motion was made by Commissioner Walser, seconded by Secretary Lenz, to approve the section discipline to both the exempt and non - exempt handbooks with the recommended additional language added to item Q. Motion was unanimously carried. (Changes attached.) GM Kumm presented the equal employment opportunity — 1989 (Affirmative Action Plan) of the exempt and non - exempt handbooks. This is an outdated policy that has since been updated. A motion was made by Commissioner Nordin, seconded by Secretary Lenz to rescind the exempt and non - exempt handbooks section: equal employment opportunity — 1989 (Affirmative Action Plan). Motion was unanimously carried. GM Kumm presented the updated equal employment opportunity — 2010 (Affirmative Action Plan) of the exempt and non - exempt handbooks. This has been reviewed by staff and our attorney, Julie Flemming Wolf. A motion was made by Secretary Lenz, seconded by Vice President Hantge to approve the exempt and non - exempt handbooks section: equal employment opportunity — 2010 (Affirmative Action Plan). Motion was unanimously carried. (Policy attached.) GM Kumm presented changes to the policies and requirements booklet, section: definition of your bill. These changes represent what we currently practice in our billing department and are what our customers see on their billing statements. A motion was made by Secretary Lenz, seconded by Vice President Hangte to approve the changes to the policies and requirements booklet, section: definition of your bill. Motion was unanimously carried. (Changes attached.) GM Kumm presented for review the policies and requirements booklet, sections: terminating electric /natural gas service by customer and errors in billing. Staff is not recommending any changes to these policies. After review no changes were recommended by the board. Jan Sifferath presented the charge -offs for 2010. After discussion a motion was made by Vice President Hantge, seconded by Commissioner Walser to approve the charge - offs for 2010 (detailed listing on page 2771 of the September general journal.) Motion was unanimously carried. The discussion on HUC by -laws was tabled. Attorney Sebora will research the conflict between MN Statute number 471.425 and HUC by -laws, and will revise language to be presented at next commission meeting. John Webster presented requisitions #004167 for 2011 Chevrolet truck cab and chassis from Valley Sales of Hutchinson, Inc for $37,860.47; and requisition #004151 utility /service body, for the 2011 Chevrolet truck, from Crysteel Truck Equipment for $16,881.80. A motion was made by Vice President Hantge, seconded by Commissioner Nordin to approve both requisitions: #004167 for 2011 Chevrolet truck cab and chassis, and #004151 for utility /service body. Motion was unanimously carried. (Requisitions attached.) Division reports Gas — John Webster • Replacing regulator set on School Road South • Will having training October 12 -14 on the AMI metering system • Have had inquiries on pipeline from landowners buying property • There have been no issues with drain tiles along the pipeline due to all the rain fall. Financial — Jared Martig • Progressing with financial software conversion — should be ready for first payroll in January 2011 Electric — Steve Lancaster • Working on the wiring for the new transformer downtown • Running an ad to sell the failed transformer Business — Jan Sifferath • 5t" annual open house scheduled for October 7t" from 4:00 p.m. to 7:00 p.m. • Still waiting on the signed labor agreement contract • Will be working with Sue Winter and LOGIS on the billing side of parallel generation • Working with Rich Westlund on medical increase • Working with Midwest Dental Benefits on the dental increase Legal Update Nothing to report Unfinished Business Approve agreement with RW Beck to conduct a rate study (tabled from August 25, 2010, regular meeting) Nothing was discussed New Business Electrical transmission arrangement: GM Kumm will present a recommendation at the October meeting to become a Transmission Owner Member in MISO. President Bordson gave an update on the PILOT program: GM Kumm has prepared an analysis and HUC is working on a long term strategic and capital plan that would benefit both HUC and City, without raising the rates. No date has been set to meet with City. There being no further business, a motion was made by Vice President Hantge, seconded by Secretary Lenz to adjourn the meeting at 4:56 p.m. Motion was unanimously carried. ATTEST: Dwight Bordson, President Craig Lenz, Secretary Regular Meeting September 29, 2010 Members present: President Dwight Bordson; Vice President Robert Hantge, Secretary Craig Lenz; Commissioner Donald H. Walser; Commissioner Paul Nordin; Attorney Marc Sebora; General Manager Michael Kumm President Bordson called the meeting to order at 3:00 p.m. The minutes of the August 25, 2010 regular meeting were reviewed. A motion was made by Secretary Lenz, seconded by Commissioner Walser to approve the minutes as written. Motion was unanimously carried. The August 2010 payables were discussed. A motion was made by Vice President Hantge, seconded by Commissioner Nordin to ratify the payment of bills in the amount of $3,722,792.93 (detailed listing in payables book). Motion was unanimously carried. GM Kumm presented the August 2010 financial statements /budget year -to -date. After discussion, a motion was made by Secretary Lenz, seconded by Commissioner Nordin to approve the August 2010 financial statements /budget year -to -date. Motion was unanimously carried. John Webster presented the Century Avenue water tower lease agreement with City and the MNSCU access agreement with Ridgewater College. The Century Avenue water tower lease agreement with the City is the same as the Golf Course Road water tower lease agreement with City, allowing us to install antenna for the AMI project. The MNSCU access agreement with Ridgewater College is giving us authorization to go onto their property to install the necessary equipment to support the AMI project. A motion was made by Commissioner Walser, seconded by Secretary Lenz to approve the Century Avenue water tower lease agreement with City and to approve the MNSCU Access Agreement with Ridgewater College. Motion was unanimously carried. (Agreements attached.) The changes to the parallel generation policy, tabled from August 25, 2010 regular meeting, were tabled again. Attorney Sebora will review policy and present recommended language changes at the October meeting. GM Kumm presented the contract for parallel generation with Joseph Wassman. A motion was made by Vice President Hantge seconded by Commissioner Nordin by approve contract for parallel generation with Joseph Wassman. Motion was unanimously carried. (Contract attached.) GM Kumm presented changes to the exempt and non - exempt handbooks, sections: other employment — non exempt only; and employee groups — exempt and non - exempt. The change to the section `other employment' — non exempt only, is to add the word `supervisor' to the second sentence. A motion was made by Commissioner Walser, seconded by Secretary Lenz to approve the changes to the section `other employment' — non - exempt only. Motion was unanimously carried. (Changes attached.) The change recommended to the section 'employee groups'— exempt and non - exempt is to rescind that policy. After discussion a motion was made by Secretary Lenz, seconded by Commissioner Walser to rescind the section, `employee groups' — exempt and non- exempt. Motion was unanimously carried. (Changes attached.) GM Kumm presented for review the exempt and non - exempt handbooks, sections: conflict of interest and discipline. The commission board recommended adding additional language to the section conflict of interest; with the last sentence to read: `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, unless the interest has been disclosed.' A motion was made by Commissioner Walser, seconded by Commissioner Nordin to approve the section conflict of interest, to both the exempt and non - exempt handbooks with the recommended additional language. Motion was unanimously carried. (Changes attached.) Also, the commission board recommended adding additional language to the section discipline; item Q to read: `Violations of the provisions of this Handbook, and / or policies.' A motion was made by Commissioner Walser, seconded by Secretary Lenz, to approve the section discipline to both the exempt and non - exempt handbooks with the recommended additional language added to item Q. Motion was unanimously carried. (Changes attached.) GM Kumm presented the equal employment opportunity — 1989 (Affirmative Action Plan) of the exempt and non - exempt handbooks. This is an outdated policy that has since been updated. A motion was made by Commissioner Nordin, seconded by Secretary Lenz to rescind the exempt and non - exempt handbooks section: equal employment opportunity — 1989 (Affirmative Action Plan). Motion was unanimously carried. GM Kumm presented the updated equal employment opportunity — 2010 (Affirmative Action Plan) of the exempt and non - exempt handbooks. This has been reviewed by staff and our attorney, Julie Flemming Wolf. A motion was made by Secretary Lenz, seconded by Vice President Hantge to approve the exempt and non - exempt handbooks section: equal employment opportunity — 2010 (Affirmative Action Plan). Motion was unanimously carried. (Policy attached.) GM Kumm presented changes to the policies and requirements booklet, section: definition of your bill. These changes represent what we currently practice in our billing department and are what our customers see on their billing statements. A motion was made by Secretary Lenz, seconded by Vice President Hangte to approve the changes to the policies and requirements booklet, section: definition of your bill. Motion was unanimously carried. (Changes attached.) GM Kumm presented for review the policies and requirements booklet, sections: terminating electric /natural gas service by customer and errors in billing. Staff is not recommending any changes to these policies. After review no changes were recommended by the board. Jan Sifferath presented the charge -offs for 2010. After discussion a motion was made by Vice President Hantge, seconded by Commissioner Walser to approve the charge - offs for 2010 (detailed listing on page 2771 of the September general journal.) Motion was unanimously carried. The discussion on HUC by -laws was tabled. Attorney Sebora will research the conflict between MN Statute number 471.425 and HUC by -laws, and will revise language to be presented at next commission meeting. John Webster presented requisitions #004167 for 2011 Chevrolet truck cab and chassis from Valley Sales of Hutchinson, Inc for $37,860.47; and requisition #004151 utility /service body, for the 2011 Chevrolet truck, from Crysteel Truck Equipment for $16,881.80. A motion was made by Vice President Hantge, seconded by Commissioner Nordin to approve both requisitions: #004167 for 2011 Chevrolet truck cab and chassis, and #004151 for utility /service body. Motion was unanimously carried. (Requisitions attached.) Division reports Gas — John Webster • Replacing regulator set on School Road South • Will having training October 12 -14 on the AMI metering system • Have had inquiries on pipeline from landowners buying property • There have been no issues with drain tiles along the pipeline due to all the rain fall. Financial — Jared Martig • Progressing with financial software conversion — should be ready for first payroll in January 2011 Electric — Steve Lancaster • Working on the wiring for the new transformer downtown • Running an ad to sell the failed transformer Business — Jan Sifferath • 5th annual open house scheduled for October 7t" from 4:00 p.m. to 7:00 p.m. • Still waiting on the signed labor agreement contract • Will be working with Sue Winter and LOGIS on the billing side of parallel generation • Working with Rich Westlund on medical increase • Working with Midwest Dental Benefits on the dental increase Legal Update Nothing to report Unfinished Business Approve agreement with RW Beck to conduct a rate study (tabled from August 25, 2010, regular meeting) Nothing was discussed New Business Electrical transmission arrangement: GM Kumm will present a recommendation at the October meeting to become a Transmission Owner Member in MISO. President Bordson gave an update on the PILOT program: GM Kumm has prepared an analysis and HUC is working on a long term strategic and capital plan that would benefit both HUC and City, without raising the rates. No date has been set to meet with City. There being no further business, a motion was made by Vice President Hantge, seconded by Secretary Lenz to adjourn the meeting at 4:56 p.m. Motion was unanimously carried. Craig Lenz, Secretary ATTEST: Dwiynt 4rdson, President WATER TOWER LEASE AGREEMENT THIS WATER TOWER LEASE AGREEMENT (the Agreement) made on this _ day of , 2010 by and between Hutchinson Utilities Commission having an office at 225 Michigan Street SE, Hutchinson, MN 55350, hereinafter sometimes called "Lessee ", and the City of Hutchinson having an office at 111 Hassan Street SE, Hutchinson, MN 55350 hereinafter called "Lessor ". The State of Minnesota, by and through the Board of Trustees of Minnesota State Colleges and Universities, on behalf of Ridgewater College, is the owner ( "Owner ") of the real property where the Lessor's City water tower is located. For good and valuable consideration, the parties agree as follows: 1. Leased Premises. (a) The Lessor owns a water tower capable of supporting antenna(s) and transmission lines(s) (`the Tower ") and space in the base of the Tower located at 2 Century Avenue SE, Hutchinson, MN. (b) Lessor agrees to provide space on its Tower for Lessee to mount one antenna and transmission lines for such wireless transmitting purposes. It is agreed that Lessee or subcontractor, in a position and manner mutually agreeable to Lessor and Lessee, will mount the antennas and transmission lines. Also, all antennas and associated hardware shall be painted the color of the tank, unless painting renders the antenna inoperable. See Exhibit "A" for antennas, transmission lines, and height specifications. Lessor shall have no obligation to maintain the above equipment in good operating condition. Lessor shall have the obligation to maintain the Tower and associated property. 2. Access. Lessor, subject to approval by the Owner, agrees to provide Lessee with the necessary access for electrical service and telephone service. It is the Lessee's responsibility to pay for provision and use of any utility service. 3. Rent. (a) Lessee agrees to allow Lessor to use the installed communications equipment for Lessor's use for water / waste water advanced metering infrastructure (AMI). In consideration of this opportunity, Lessor will waive payment of annual rent, and any other fees the Lessor would normally charge under this type of an agreement. (b) If Lessor uses Lessee's communication equipment for Lessor's AMI, Lessor shall pay its pro -rata share of the future operational costs, and all equipment / upgrade costs of Lessee's equipment. 4. Lessee's Use. (a) Lessee desires to make use of Lessor's water tower all as set forth more fully in this Agreement, to make such transmission for wireless transmitting purposes. 1 of 9 (b) Lessee represents that it shall, prior to installation of its equipment, obtain in effect all necessary licenses to transmit wireless signals from this location for wireless transmitting purposes, and has obtained all necessary permits, approvals and agreements from the Owner. (c) Lessor agrees to provide to Lessee space in the base of the Tower in Lessors property controlled by Lessor at 2 Century Avenue SE, Hutchinson, MN, for Lessee to locate equipment to be operated by Lessee for such wireless transmitting purposes. Lessor and Lessee shall determine the location of such space jointly. See Exhibit `B ". Lessee agrees to provide and maintain such equipment, which, it is agreed, shall operate on various non - interfering frequencies. See Exhibit "A ". (d) Lessee shall not be responsible to correct interference to any third parties' equipment installed after the effective date of this Agreement unless interference is a direct result of a malfunction in or modification made to Lessee's equipment. (e) Lessee shall have the right to provide, through a telephone company, or others any lines necessary for Lessee's operation. Such lines, when installed on the property of Lessor, shall be installed on a routing acceptable to both parties. (f) To the extent of Lessor's own legally binding agreements with the Owner, Lessee shall have access to the site at all times. Keys shall be stored at an on -site lock box. Keys shall not be duplicated. Lessee shall notify Lessor twenty -four (24) hours in advance, except in an emergency, and Lessor's approval thereof shall not be unreasonably withheld or delayed. 5. Lessor's Use. (a) Lessor reserves the right to inspect any installations made by Lessee. Lessee shall pay for inspectors hired by the Lessor to watch the installation of Lessee's equipment. If according to the inspectors or the Lessor, changes to the installation plan or procedures or that repairs need be made Lessee shall do so. (b) Nothing contained in this Agreement shall prohibit or restrict Lessor from entering into agreements with other parties for the provision of space for mounting of transmission lines and antennas or the rental or lease thereof, subject to approval by Owner, and provided that such provision of space for mounting of transmission lines and antennas for the rental or lease thereof will not interfere with the uses granted to Lessee herein or with Lessor's own legally binding agreements with the Owner. It is recognized the Lessor has established a user priority in its other leases; the Lessee agrees that the following priorities of use, in descending order, shall apply in the event of communication interference, emergency public safety needs, or other conflict while this Agreement is in effect, and Lessee's use shall be subordinate accordingly: 2 of 9 1. Owner, Lessor and its agents which includes Hutchinson Utilities Commission; 2. Public safety agencies, including law enforcement, fire, and ambulance services, that are not part of the Lessor; 3. Other governmental agencies where use is not related to public safety; 4. Government- regulated entities whose antennae offer a service to the general public for a fee, in a manner similar to a public utility, such as long distance and cellular telephone, not including radio or television broadcasters; and 5. Pre - existing tenants. 6. Permits. Lessee agrees that it shall, prior to the installation of its equipment, obtain and maintain in effect during the term of this Agreement, all licenses and permits necessary for the operation of its equipment. 7. Maintenance. (a) In the event that the Lessor maintains, paints, or repairs any portion of the water tower where the Lessee has equipment, the Lessee agrees to accommodate the maintenance, painting or repairs by moving such equipment so as to allow unrestricted access to the maintenance, paint job or repair. (b) Lessor will notify Lessee at least forty -five (45) days in advance of the date when the water tower is scheduled to be painted, repaired, rebuilt or scheduled for general maintenance. The parties will cooperate to determine which of the following two options will be used to address the impact of the Lessee's equipment. On the cost of painting or repairing the water tower: 1) shortly before the painting date, Lessee will place a temporary antenna array on a crane parked near the site. The Lessee will then remove the antennas from the water tower array. The Lessee will then remove the antennas from the water tower and painting or repair will proceed. Once the painting or repair is finished, Lessee will then re -attach the antennas where they were and will have them painted to match the newly repaired / painted water tower, unless painting renders the antenna inoperable. All costs incurred in removing the antennas, placement of the temporary array, reattaching and painting the antennas shall be the sole responsibility of the Lessee. 2) The contractor will bid on the cost of painting / repairing the tower without the Lessee's equipment present. The contractor will then bid on the cost of painting / repairing the Tower with the Lessee's equipment left in place. The contractor will then proceed to paint / repair the tower with the Lessee's equipment left in place. The Lessee will reimburse the Lessor for the difference between the two bids. 8. Defense & Indemnification. 3 of 9 (a) It is understood and agreed that there is no guarantee or warranty whatsoever by Lessor concerning the performance or coverage resulting from Lessee's use of said Tower and associated facilities. (b) Lessee warrants that its installations and all work by Lessee shall cause no damage to the Tower or to any property of Lessor or Owner. Lessee shall indemnify, protect, defend, and hold harmless Lessor and Owner from and against any damages to property of Lessor or property of Owner which may arise out of or caused by any act of Lessee, or its agents or which may arise out of or caused by the maintenance, presence, use, or removal of any equipment owned or provided by Lessee and will pay Lessor the amounts necessarily spent by Lessor in repairing or replacing such property or equipment Lessee so damaged. Lessee shall indemnify, protect, defend and hold harmless Lessor and Owner from and against any and all losses, claims, lawsuits, judgments, and demands whatsoever, including the cost of investigation and attorney' charges, which may arise out of or be caused by any negligence of Lessee or by the maintenance, presence, use, or removal of any equipment owned or provided by Lessee; provided, however, that Lessee will not be responsible for any damage to any property owned or provided by Lessor or for any loss of business of any nature whatsoever suffered by Lessor resulting from fire, windstorms, lightning or any act of God, or resulting from any loss of electric power not caused by the negligence of Lessee or any its employees. (c) Lessor will not be responsible for any damage to any property owned or provided by Lessee or for any loss of business or damages of any nature whatsoever suffered by Lessee resulting from fires, lightning, windstorm, or any act of God, or resulting from any loss of electric power or not caused by the negligence of Lessor or of its employees. "LESSOR'S" and Owner's liability, in the event of any loss or damages of any nature caused by the negligence of Lessor or of its employees, shall not extend beyond the amount of any physical damages to Lessee's equipment caused by such negligence. (d) Lessee shall maintain insurance in amounts no less than the amounts required under the Municipal Tort Claims Act, Minn. Stat. § §466 et. al. (e) (right of distress is not available in Minnesota) 9. Terms & Lease Termination. (a) This Agreement shall become effective on , 2010, if not previously terminated by Lessor or Lessee in accordance with the provisions hereof, and subject always to Owner's termination rights as set forth in Lessor's legal agreements with Owner, and shall continue in effect for a term of five (5) years. Notwithstanding anything herein to the contrary, either party may, at any time after the initial term of this Agreement, give the other 365 days notice of its intention to cancel this Agreement. This 365 day notice shall be written and delivered as called in the "NOTICES" to address(es) listed herein. If the parties agree to cancel the Agreement, Lessee must have its equipment removed in its entirety by the end of the 365 day notice period, unless other mutually agreed to arrangement are put in place. 4of9 (b) Subject to termination as set forth in Section 9 (a) herein, and subject always to Owner's termination rights, Lessee shall have the option to renew this Agreement, for three (3) additional five (5) year periods, each commencing on the day following the termination date of the prior term, upon Lessee's written notice of intent to renew at least 60 days before the end of the current term, whereupon this renewal term shall commence on the day following the termination date of the prior term. If Lessee shall fail to provide written notice of renewal at least 60 days before the end of the current term, the Agreement shall terminate at the end of the current term. (c) Upon any failure of Lessee to perform any obligation required hereunder, or if Lessee does not have in effect any license required for its operation hereunder, Lessor may terminate Lessee's rights under this Agreement by giving thirty(30)days written notification by certified US mail, return receipt requested, to lessee at its address set forth below. If Lessee fails to cure any such default within such period, then the termination shall become effective at the end of said thirty (30) days. Lessee may terminate Agreement if it is unable to obtain or maintain any license permit of other approval for its operations at the site, or if the site becomes undesirable for its operation for technological reasons, such as irresolvable signal interference. Failure by Lessor to enforce or insist upon compliance with any of the terms or conditions of this Agreement shall not constitute a waiver or relinquishment by Lessor of any such terms or conditions. (d) Upon any termination of this Agreement or any termination of Lessee's rights under this Agreement, Lessee shall immediately remove its transmitter and any other property owned by it from the premises of Lessor. If not removed, Lessor shall have the right to remove them at the cost and expense to Lessee and without any liability therefore. 10. Assignment. This Agreement is not transferrable or assignable to any other entity. 11. FCC Rules. Pursuant to FCC rules whereby one party may be assigned as the party responsible for conforming to all FCC requirements regarding obstruction marking and lighting of antenna structures we hereby confirm the designation of Lessor as the responsible licensee. This does not supersede any other requirement or obligations defined in FCC rules. 12. Notices. All notices, requests, demands, renewals, and other communications hereunder shall be in writing and shall be deemed given if personally delivered, sent by an overnight courier providing proof of service, or mailed, certified mail, return receipt requested, to the following addresses: If to Lessee: 5 of 9 Hutchinson Utilities Commission 225 Michigan St. SE Hutchinson, MN 55350 (320)587 -4746 Attention: General Manager With a copy to: Hutchinson Utilities Commission 225 Michigan St. SE Hutchinson, MN 55350 (320)587 -4746 Attn: Legal Department If to Lessor: City of Hutchinson 111 Hassan St. SE Hutchinson, MN 55350 (320)587 -5151 Attn: City Administrator With a copy to Owner: Minnesota State Colleges and Universities Office of the Chancellor 30 7`h Street East, Suite 350 St. Paul, MN 55101 -7804 Attn: Real Estate Services Ridgewater College Hutchinson Campus 2 Century Avenue SE Hutchinson, MN 55350 Attn: Vice President, Finance and Operations 13. Authority. Each of the individuals executing this lease on behalf of the tenant or landlord represents to the other party that such individual is authorized to do so by requisite action or the corporate policies of each respective party to this lease and the parties hereto recognize and acknowledge the validity of said authority. 14. Complete Lease. This Agreement constitutes the entire Agreement of the parties hereto and supersedes any and all offers, negotiations and agreements. Any modification of or amendment to this Agreement must be in writing and executed by both parties. 6 of 9 LESSOR: LESSEE: 7 of 9 CITY OF HUTCHINSON Gary D. Plotz Its: Administrator HUTCHINSON UTILITIES COMMISSION By pr a,4�4 6�1� Dwight B61dson Its: President By Ro tge Its: Vice President OWNER CONSENT: 8 of 9 State of Minnesota, by and through the Board of Trustees of Minnesota State Colleges and Universities consents to this Lease Agreement between the City of Hutchinson and Hutchinson Utilities Commission. LM Its: Date: STATE OF MINNESOTA ) )SS COUNTY OF MCLEOD ) The foregoing instrument was acknowledged before me this day of , 2010, by Gary Plotz, the City Administrator of the City of Hutchinson on behalf of the corporation. Notary Public STATE OF MINNESOTA )SS COUNTY OF MCLEOD ) The foregoing instrument was acknowledged before me thi4,7144 day of sz , 2010, by Dwight Bordson, the President and Robert Hantge, the Vice President of the Hut hinson Utilities Commission on behalf of the corporation. LINDA L. �AADW otary Public WrARY PI�LIt'. MElORA �r CWAL t1. Jft !t. Rot; 9 of 9 Minnesota STATE COLLEGES & UNIVERSITIES ACCESS AGREEMENT This Agreement is made this day of , 2010, by and between State of Minnesota, by and through the Board of Trustees of Minnesota State Colleges and Universities, on behalf of Ridgewater College - Hutchinson ( "Licensor "), and Hutchinson Utilities Commission ( "Licensee "), a Municipal Utility located at 225 Michigan Street SE, Hutchinson, MN. RECITALS A. Licensor is the Owner of the Ridgewater College campus (the "Property "), as identified and further described on the sketch of area on the attached Exhibit A. B. Licensee seeks the right to come on to Licensor's property to undertake installation activity for wireless transmitting purposes, which shall include obtaining all necessary licenses to transmit wireless signals from this location and mounting one antenna, transmission lines, and cabinetry with base on the City of Hutchinson's water tower located on the Property. C. Licensor shall allow Licensee to mount one antenna and transmission lines for advanced metering infrastructure (AMI) wireless transmissions, for electric /natural gas meter reading purposes, on the City of Hutchinson's water tower. Licensor shall allow Licensee to have access for such purpose, and for no other purpose whatsoever NOW, THEREFORE, it is agreed as follows. 1. License. Licensee shall have the right to mount one antenna, transmission lines, and cabinetry with base for electric /natural gas AMI wireless transmission purposes on the City of Hutchinson's water tower, consistent with the terms and conditions herein, including plans as shown on the Water Tower Lease Agreement, attached as Exhibit B. 2. Installation Term. Licensee shall complete its installation activity, as set forth in Exhibit B of this Access Agreement, by November 30, 2010. 3. Consideration. In consideration for this license, Licensee shall pay to Licensor a one -time, non - refundable license fee of $1.00. 4. Mode of Access. Before Licensee may enter into Licensor's property pursuant to this Agreement, Licensee shall consult with Licensor, which shall have sole discretion to direct Licensee concerning access routes and methods, including setting any special access terms and conditions for heavy equipment, motor vehicles, or machinery used by the authorized persons. Licensor shall also have sole discretion to specify locations for storage of all materials and equipment and parking arrangements for vehicles of any of the authorized persons while those persons have access to Licensor's property pursuant to this Agreement. 5. Nonassignable. This license is personal to the Licensee. It is not assignable, and any attempt to assign this license will terminate the license. 6. Terminable at Will. This agreement is terminable by either party at will by the giving of actual notice to the other party. Licensee shall at its sole cost and expense restore the Property to the condition that existed prior to work commencing. 7. Notices: All notices provided for in this Lease Agreement shall be sent to the respective party at its address herein below by either certified mail, return receipt requested, or overnight delivery such as FedEx and Express Mail. Notice shall be deemed given when deposited. Notices to Licensor shall be addressed as follows: Licensor: Ridgewater College Hutchinson Campus 2 Century Avenue SE Hutchinson, MN 55350 Attn: Vice President, Finance and Operations With a copy to: Minnesota State Colleges & Universities 30 E. 7t' Street, Suite 350 St. Paul MN 55101 Attn: Real Estate Services Notices to Licensee shall be addressed as follows: Licensee: Hutchinson Utilities Commission 225 Michigan Street SE Hutchinson, MN 55350 -1905 Attn: John Webster 8. Insurance and Liability. a. Insurance. It shall be the duty of Licensor and Licensee, including its contractors, subcontractors and/or agents, to maintain insurance or self - insurance on their own property, both real and personal, and for any Work conducted on the Property. Prior to the commencement of Work, Licensee shall provide Licensor satisfactory evidence of the applicable insurance coverage as described in the attached Exhibit C for work to be completed by its contractors, subcontractors or other vendor. Such insurance shall be required. Notwithstanding anything apparently to the contrary in this Agreement, Licensor and Licensee hereby release one another and their respective partners, officers, employees and property manager from any and all liability or responsibility to the other or anyone claiming through or under them by way of subrogation or otherwise for loss or damage covered by said insurance, even if such loss or damage shall have been caused by the fault or negligence of the other party, or anyone for whom such party may be responsible. b. Liability. Licensor and Licensee agree that each party will be responsible for its own acts and the results thereof to the extent authorized by law and shall not be responsible for the acts of any others and the results thereof. Licensor's liability shall be governed by the provisions of the Minnesota Tort Claims Act, Minnesota Statutes, Section 3.736, and other applicable law. Licensee's liability shall be governed by the Municipal Tort Claims Act, Minnesota Statutes, Section § §466 et. al. c. Insurance. Licensee shall, at its own expense, obtain, carry and keep in full force commercial general liability insurance or self - insurance against any liability or claim for personal injury, wrongful death or property damage for which the party is responsible to the Licensor under this Agreement or by law, with financially responsible insurers authorized to transact insurance business in the State of Minnesota, with a combined single limit of not less than the liability maximums found in the Municipal Tort Claims Act. Such insurance may be written by additional premises endorsement on any master policy of insurance which may cover other property; provided that the insurer shall provide a schedule to Licensor showing that the coverage provided by such policy shall (a) meet the requirements of this Agreement; (b) not be reduced by any claims made with respect to other properties; and (c) be in such amount as will preclude the insureds from being held to be co- insurers. Licensee shall provide to Licensor a certificate of insurance evidencing such coverage. 9. Lease With City. Licensee shall enter into a lease with the City of Hutchinson in a form substantially similar to the Water Tower Lease Agreement contained in attached Exhibit D that will govern the ongoing operation of the improvement. 10. Environmental Covenants. Licensee shall not store, locate, generate, produce, process, treat, transport, incorporate, discharge, emit, release, deposit or dispose of any hazardous substance in, upon, under, over or from the premises or any property owned by Licensor in violation of any environmental law, shall not permit any hazardous substance to be stored, located, generated, produced, processed, treated, transported, incorporated, discharged, emitted released, deposited or disposed of or to escape therein, thereupon, thereunder, thereover or therefrom in violation of any environmental law, shall cause all hazardous substances to properly remove therefrom and properly disposed of in accordance with all applicable environmental laws, shall not install or permit to be installed any underground storage tank therein or thereunder in violation of any environmental law, and shall comply with all other environmental laws which are applicable to the premises or any property owned by Licensor. The Licensee shall indemnify Licensor against, shall hold Licensor harmless from, and shall reimburse Licensor for any and all claims, demands, judgments, penalties, liabilities, costs, damages and expenses, including court costs and attorney's fees directly or indirectly incurred by Licensor (prior to trial, at trial and on appeal) in any action against or involving Licensor resulting from any breach of the foregoing covenants. The foregoing representations, warranties and covenants of this Section shall be deemed continuing covenants, representations and warranties for the benefit of Licensor, and shall survive the termination of this Agreement. 11. Prevailing Hours of Labor and Prevailing Wage Rates. All Contractors and Subcontractors shall conform to the labor laws of the State of Minnesota and all other laws, ordinances, and legal requirements affecting their work in Minnesota. Pursuant to Minnesota Statutes 177.43, "(1) no laborer or mechanic employed directly on the project site by the contractor or any subcontractor, agent, or other person doing or contracting to do all or part of the work of the project, is permitted or required to work more hours than the prevailing hours of labor unless paid for all hours, in excess of the prevailing hours at a rate of at least 1 -1/2 times the hourly basic rate of pay; and (2) a laborer or mechanic may not be paid a lesser rate of wages than the prevailing wage rate in the same or most similar trade or occupation in the area," Public policy is stated in Minnesota Statute 177.41 as follows: "It is in the public interest that public buildings and other public works be constructed and maintained by the best means and highest quality of labor reasonably available and that persons working on public works be compensated according to the real value of the services they perform. It is therefore the policy of this state that wages of laborers, workers, and mechanics on projects financed in whole or part by state funds should be comparable to wages paid for similar work in the community as a whole." Nothing in this Contract shall be construed as prohibiting the Contractor or Subcontractor paying; the negotiated wage rate. To facilitate compliance pursuant to the Statute, prevailing wage rates, prevailing hours of labor, and hourly basic rates of pay are prepared for different trades for each county from which labor for said project would be secured. Prevailing wage rates, prevailing hours of labor and hourly basic rates of pay shall be obtained from the Minnesota Department of Labor and Industry. Prevailing wage rates, prevailing hours of labor, and hourly basic rates must be posted in at least one conspicuous place for the information of the employees working on the Project. 12. Governing Laws. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota, without giving effect to principles of conflict of laws. 13. Data Practices Act. To the extent that Licensee has access to the private, nonpublic, or confidential data of Licensor, Licensee agrees to comply with the requirements of the Minnesota Government Data Practices Act (Minnesota Statutes, Chapter 13) in fulfilling the terms of this Agreement. Licensee agrees to indemnify, release, and hold Licensor, its officers, agents, and employees, and the Board of Trustees of MnSCU, and their successors and assigns, harmless from all claims arising out of, resulting from, or in any manner attributable to any violation of any provision of the Minnesota Government Data Practices Act, including legal fees and disbursements paid or incurred to enforce this provision of this Agreement. In the event that Licensee enters into contracts or subcontracts for any or all of the work to be performed for the Project under this Agreement, Licensee shall retain responsibility under the terms of this section for such work. Such indemnification and hold harmless obligation shall not apply to incidental, indirect, special or consequential damages, or for lost profits, savings or revenues or any kind, whether or not Licensee has been advised of the possibility of such damages. 14. Modification. This Amendment may be supplemented, amended or modified only by the mutual agreement of the parties. No supplement, modification or amendment of this Amendment shall be binding unless it is in writing and signed by both parties. 15. Representations. Licensee represents warrants that it is fully and properly authorized to enter into this Agreement, and can make and bind the Licensee to the terms as described herein. 16. Entire Agreement. This Amendment, together with the Agreement, constitutes the final, complete and exclusive statement of the agreement between the parties pertaining to their subject matter and supersedes any and all prior and contemporaneous understandings or agreements of the parties. Except with respect to the changes effected by this Amendment, the Lease Agreement continues to remain in full force and effect. The remainder of this page has been intentionally left blank. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as this day of , LICENSOR: State of Minnesota, by and through the Board of Trustees of Minnesota State Colleges & Universities on behalf of Ridgewater College — Hutchinson. Its: Date: LICENSEE: Hutchinson Utilities Commission By: Its: Date:, 30, ,IV/ zP EXHIBIT A Ridgewater Community and Technical College Hutchinson Main Campus Institution Buildings 1 - Main Building 2 - Maintenance Building 3 - NDT Shelter Water Tower L _ Master Ptan Boundary Owned Property Q Building Roof Top President's Office Kandiyoh O M � ter CTC - Campus Address: 2 Century Ave SE Hutchinson, MN 55350 Ridgewater CTC . Hutchinson McLeod ■ As of June 30, 2010 .17 ` : This map was created for display Sources: McLeod County, i purposes only. It should not be used Ridgewater Community and Minnesota for accurate measurements or where Technical College Master RUNI VERITIES a survey is required. Plan (2005), USDA FSA (2009). Institution Buildings 1 - Main Building 2 - Maintenance Building 3 - NDT Shelter Water Tower L _ Master Ptan Boundary Owned Property Q Building Roof Top President's Office Kandiyoh O M � ter CTC - Campus Address: 2 Century Ave SE Hutchinson, MN 55350 Ridgewater CTC . Hutchinson McLeod ■ v b 4 S Z jo I a2LId S IIEIIHXFI F a W Y g t Z JO Z 32t'd S ,LIHIHXFI EXHIBIT C — General Insurance Reauirements The Licensee shall not commence work under the contract until they have obtained all the insurance described below and the State of Minnesota has approved such insurance All policies shall remain in force and effect throughout the term of the Contract. POLICY REQUIREMENTS 1. Workers' Compensation Insurance A. Statutory Compensation Coverage B. Coverage B — Employers Liability with limits of not less than: $100,000 Bodily Injury by Disease per Employee $500,000 Bodily Injury by Disease Aggregate $100,000 Bodily Injury by Accident 2. Automobile Liabilitv Insurance A. Minimum Limits of Liability: $2,000,000 — Per Occurrence - Bodily Injury and Property Damage Combined Single Limit B. Coverages: • Owned Automobile • Non -owned Automobile • Hired Automobile 3. General Liabilitv Insurance A. Minimum Limits of Liability: $2,000,000 — Per Occurrence $2,000,000 — Annual Aggregate $2,000,000 — Annual Aggregate applying to Products /Completed Operations B. Coverages: X Premises and Operations Bodily Injury and Property Damage X Personal & Advertising Injury X Blanket Contractual X Products and Completed Operations X Other; if applicable, please list X State of Minnesota named as Additional Insured 4. Professional Liabilitv/Miscellaneous Liability Insurance Coverage for negligent acts, errors or omissions arising out of the performance of professional services included in the contract. A. Minimum Limits of Liability: $2,000,000 — Per claim or event $2,000,000 — Annual Aggregate B. Any deductible will be the sole responsibility of the Licensee and may not exceed $50,000 without the approval of the State. C. The retroactive or prior acts date of such coverage shall not be after the effective date of this contract. Additional Insurance Conditions • Licensee's policy(ies) shall be primary insurance to any other valid and collectible insurance available to the State of Minnesota with respect to any claim arising out of the contractor's performance under this contract. Page 1 of 2 • Licensee's policy(ies) will provide the State of Minnesota with thirty (30) days advance written notice of cancellation. • Licensee is responsible for payment of contract related insurance premiums and deductibles. • If Licensee is self - insured, a Certification of Self - Insurance must be attached. • Licensee's policy(ies) shall include legal defense fees in addition to the liability policy limits, with the exception of 4. above. • Licensee shall obtain insurance policy(ies) from insurance company(ies) having an "AM Best" rating of A- (minus), Financial Size Category of VII or better, and authorized to do business in the State of Minnesota. • An Umbrella or Excess Liability insurance policy may be used to supplement the Licensee's policy limits to satisfy the full policy limits required by the Contract. Page 2 of 2 Contract for Parallel Generation facilities This contract is entered into September 29, 2010, by Hutchinson Utilities Commission (hereafter called "Utility ") and Joseph Wassman (hereafter called "customer ") RECITALS The customer has installed electric generating facilities, consisting of Grid Tied Photovoltaic System rated at 0_1 kilowatts of electricity, on property located at 573 Grove Street Southwest Hutchinson Minnesota 55350 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 KWH for Energy delivered to HUC, in Excess of Energy Used by the customer. $0.054 /kwhr see, #3 in Parallel Generation (40KW or less). 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). iii 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 $40. The customer will pay the Utility in this way: HUC will invoice Joseph Wassman. 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. HUC will notify Joseph Wassman with a phone call. 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. 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. 0, 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 SIGNED THIS CONTRACT BELOW ON THE DATE WRITTEN AT THE BEGINNING OF THIS CONTRACT. Custome,----,-2 By /z Date: % — 17— 16 3 HUTC SON UTILITIES COMMISSION By Date: / , NON - EXEMPT 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 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 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. I WN-A M 12 1 NON - EXEMPT EXEMPT 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, unless the interest has been disclosed. NON - EXEMPT 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 unless the interest has been disclosed. EXEMPT 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 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, 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 and/or policies. R Horseplay, loafing or sleeping on the job. S Proven dishonesty in the performance of duties. T Acts or threats of physical violence directed toward 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 time clock for another employee. NON - EXEMPT 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. 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 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 and /or policies. R Horseplay, loafing or sleeping on the job. S Proven dishonesty in the performance of duties. T Acts or threats of physical violence directed toward 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. 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O O >, V N O O L C m o }' m � � m Co .5 c v a� m CL c c 2 �t c cc O Q O U a) t O E .0 a) Q O C N Q () 0) C cn N U O a LO W a) C t U ca co a) Q. O O L N L a� Y O EJ c� cu N -a O U N C C cu c E cu N L Q cm O � ca 5 3 S H ) L X Q E O O cu -0 C6 cu cn cu U .O cm C N Y C C' O 6i O O O C 0 cn _7 C C. O a) O to N N O E c6 O > C. >, U `C L O Q. -a O "7 C O i ca o rn O Y .' 3 v t6 C 0 U 3 "a > C' U -0 U N L U O (CS =3 'O 0 a + ca 7 ca cQ L E OL O 0 C .� .Q c E E 3 0 -2 O C) L > co) 'O i co O O C -C 70 -0 3: N Co «� 5 - — N m •C N M c6 �C a) N N O L rn c c E a) cc ' m t U -O > i 3 (a a) .. c 0 E c` N o (D cm +O' Q Q. N :3 Rf E O m J "a cm C a) Y 3 Q. I C O a) U cli C f� c ca U CD O U C L ,U co > -c CU N .-. •« O L N 3 M co cm L (� Q% �d - V O M cu cu Q CO C CU .0 a) O N M -0 U o o C a cu CL � o c o O FD v- C O :3 a) m O cu v N C N N O N a) N c O O N -0 Q- C c X O E N a) - L C O 4- O O cn c c CD t +� co N E 3 O ca N N C C - �O a) E O A c6 = N L C C fl. N 'D O N 'O O O. 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Z 0 CL E w = T •L m CC G N m Q G) LL Q � Z Q _ a 0 T Z 0 �. E = O W C � 0 m 7+ Q f0 Q Qi Q Q. Z Q E w Q _ a v m o O X H w Q Cn LL W h n> 4J N Qi f0 y O r-1 Ln 00 r l ri N 00 tO .y N d LQ E- W Gl cu m 41 O M ri 111 00 ri ri N 00 E W cu 0 L tw 4) N M 41 N C Q 0 (n � Ln bO O O 0) L O O O Oi O O O O O 0 N T T 91 00 ri M 00 0 IT R* d• Ith Ln ri r-I Ln N N a� O O O N N L r_ N iz v N Qi I- Y m (V N Q O o C LO v 000 E 0 M L v a° v �, V V� Q ,• 41 0 m 3 Ln I c o O c C7 0 C _N O co O .N C L r i Q U N L U 'y o A Cl) cv c� = o Q 0) O N N ca d� ca � �Rf CU C O O Z. �+ U N � cm cu Q Q V Q O N 0) N � Y n t- kn Itt M N IC tn M N r-I V-1 - 19 3 O �O L J2 d N N O O O r O O O O O O C Z 3 a d 'L o 0 O 3 m Z •> ti � Q o 0 o Do 0 N w sT sr M It c O O O O O O O O O O O O O O O O O O O O O O +. 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