07-25-2012 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, July 25, 2012
Call to order — 3:00 p.m.
President Bordson called the meeting to order. Members present: President Dwight
Bordson; Secretary Leon Johnson; Commissioner Monty Morrow; Commissioner
Anthony Hanson; Attorney Marc Sebora; General Manager Michael Kumm. Member
absent: Vice President Craig Lenz.
1. Approve Minutes of: June 25, 2012 Special Meeting and June 27, 2012
Regular Meeting
The minutes of the June 25, 2012 special meeting were discussed. GM Kumm
wanted to publicly thank Jared Martig for providing the case study for the bond
refinance savings. A motion was made by Secretary Johnson, seconded by
Commissioner Hanson to approve the minutes. Motion was unanimously carried.
The minutes of the June 27, 2012 regular meeting were discussed. The Board
received a request from Mayor Steve Cook to amend the minutes to include the
following verbiage at the end of the unfinished business item "Discuss City
Administrator / Ex- Officio HUC Board Member ": `, and that the ex- officio would
serve when a council member is not serving as a member of the commission. Also,
at the end of the July 10th council meeting the Council did discuss possibly
changing the City Charter to remove the Council's ability to appoint a council
member to HUC and the Council unanimously felt it was important to retain that
right.' A motion was made by Commissioner Morrow, seconded by Commissioner
Hanson to approve the amended minutes. Motion was unanimously carried.
2. Ratify Payment of Bills for June 2012
The June 2012 payables were discussed. A motion was made by Secretary
Johnson, seconded by Commissioner Morrow to ratify the payment of bills in the
amount of $3,790,771.24 (detailed listing in payables book). Motion was
unanimously carried.
3. Approve Financial Statements /Budget Year to Date
GM Kumm presented the June 2012 financial statements /budget year -to -date.
After discussion, a motion was made by Commissioner Hanson, seconded by
Secretary Johnson to approve the financial statements /budget year -to -date. Motion
was unanimously carried.
4. Review Policies and Requirements Booklet
GM Kumm presented policies and requirements booklet, sections: Hutchinson
Utilities Commission; policies and requirements brochure; and establishing a new
electric /natural gas account. This is part of our policy review and no changes are
requested at this time.
1
5. Approve Changes to Exempt and Non - Exempt Handbooks
GM Kumm presented changes to the exempt and non - exempt handbooks,
sections: jury duty; volunteer fire or rescue squad duty; and retirement program.
The changes were made to clean up verbiage. A motion was made by Secretary
Johnson, seconded by Commissioner Hanson to approve the changes to the
exempt and non - exempt handbooks, sections: jury duty; volunteer fire or rescue
squad duty; and retirement program. Motion was unanimously carried. (Changes
attached.)
6. Approve After Hours Reconnection Policy
At the June 27 regular commission meeting, GM Kumm presented a draft of the
After Hours Reconnection Policy recommended by staff for the Board to review.
The Board suggested changing `and from 9:00 p.m. to 7:30 a.m.' to `nor from 9:00
p.m. to 7:30 a.m.' The Board also added the sentence `Payments must be made
prior to reconnecting utilities.' to the last paragraph. After discussion, the Board
tabled the policy and until the next regular commission meeting.
7. Approve Requisition #4986 for Installation of Hutchinson Utilities' Brownton
Interconnect Facilities
John Webster presented requisition #4986 for installation of Hutchinson Utilities'
Brownton interconnect facilities from Q3 Contracting in the amount of $36,013.
After discussion, a motion was made by Commissioner Morrow, seconded by
Secretary Johnson to approve requisition #4986 for installation of Hutchinson
Utilities' Brownton interconnect facilities from Q3 Contracting in the amount of
$36,013. Motion was unanimously carried. (Requisition attached.)
8. Division Reports
Finance — Jared Martig
Nothing to report
Gas — John Webster
• This afternoon, there was a natural gas line hit on 5t" Avenue which was the
first incident this year. No injuries were reported.
• 100% reimbursement received from FEMA for damaged facilities in the July
2011 storm.
• Thursday evening's presentation meeting with City of Brownton cancelled;
United Farmers Cooperative was not prepared yet.
• Purchased another strip of natural gas for an 8 -year deal at $5.04 from
November 2013 to October 2021.
Electric — Steve Lancaster
Nothing to report
2
9. Legal Update
As a follow up to the June 27, 2012 regular commission meeting, Attorney Sebora
reported back to the Board with a draft of changes to the HUC By -Laws by adding
a section called, "Cooperation with City." This section addresses: 1) the City
Administrator attending all commission meetings; and 2) shared services between
the City of Hutchinson and Hutchinson Utilities Commission. The Board will review
the changes to the HUC By -Laws and discuss them in the next regular commission
meeting.
Attorney Sebora also drafted a shared services contract between the City and
HUC. The contract is being reviewed by City directors and will then be forwarded
to HUC for review and approval.
Unfinished Business
• Discuss Potential Capacity Sale
GM Kumm gave an update on selling capacity to an interested party.
• Discuss Credit Card Payments
GM Kumm discussed working on restricting credit card payments to residential
customers only and no commercial or industrial customers as it is costing HUC
a substantial amount of money in processing fees. Commissioner Hanson
suggested looking into the recent lawsuit settlement which would allow
businesses to charge customers an extra fee for paying with a credit card. GM
Kumm will have staff research and report back to the Board at the next regular
commission meeting.
• Discussion Regarding Pre -Pay for Natural Gas
GM Kumm and John Webster continue to work on pre -pay for natural gas
which would result in an annual savings of approximately $135,000.
• Schedule Strategic Planning Meeting
In June's regular commission meeting, President Bordson requested
Commissioners submit strategic planning discussion items to Kim Koski and
GM Kumm. The items have been compiled and grouped together in one
document. A motion was made by Secretary Johnson, seconded by
Commissioner Hanson to schedule Wednesday, August 29 from 8:00 a.m. to
11:00 a.m. for a strategic planning workshop with the location to be determined.
Motion was unanimously carried.
• Intellectual Property Committee — Patent
President Bordson discussed HUC pursued getting the rights for the statistical
model back from the software company. The patent study has been turned over
to Attorney Sebora to manage accordingly and work with David Fairbairn of
Kinney & Lange Law Firm. A motion was made by Secretary Johnson,
seconded by Commissioner Hanson to enter into an agreement with David
Fairbairn of Kinney & Lange Law Firm to work with Attorney Sebora on the
patent study.
3
• Policy on Disposal of Surplus Property
Commissioner Hanson inquired about the update on the changes on this policy.
Jared Martig and Attorney Sebora are meeting next week to work on the policy.
The changes will then be presented to the Board for approval.
New Business
There being no further business, a motion was made by Commissioner Hanson,
seconded by Commissioner Morrow to adjourn the meeting at 4:08 p.m. Motion was
unanimously carried.
ATTEST:
Dwight Bordson, President
12
Leon Johnson, Secretary
MINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, July 25, 2012
Call to order — 3:00 p.m.
President Bordson called the meeting to order. Members present: President Dwight
Bordson; Secretary Leon Johnson; Commissioner Monty Morrow; Commissioner
Anthony Hanson; Attorney Marc Sebora; General Manager Michael Kumm. Member
absent: Vice President Craig Lenz.
1. Approve Minutes of: June 25, 2012 Special Meeting and June 27, 2012
Regular Meeting
The minutes of the June 25, 2012 special meeting were discussed. GM Kumm
wanted to publicly thank Jared Martig for providing the case study for the bond
refinance savings. A motion was made by Secretary Johnson, seconded by
Commissioner Hanson to approve the minutes. Motion was unanimously carried.
The minutes of the June 27, 2012 regular meeting were discussed. The Board
received a request from Mayor Steve Cook to amend the minutes to include the
following verbiage at the end of the unfinished business item "Discuss City
Administrator / Ex- Officio HUC Board Member ": `, and that the ex- officio would
serve when a council member is not serving as a member of the commission. Also,
at the end of the July 10th council meeting the Council did discuss possibly
changing the City Charter to remove the Council's ability to appoint a council
member to HUC and the Council unanimously felt it was important to retain that
right.' A motion was made by Commissioner Morrow, seconded by Commissioner
Hanson to approve the amended minutes. Motion was unanimously carried.
2. Ratify Payment of Bills for June 2012
The June 2012 payables were discussed. A motion was made by Secretary
Johnson, seconded by Commissioner Morrow to ratify the payment of bills in the
amount of $3,790,771.24 (detailed listing in payables book). Motion was
unanimously carried.
3. Approve Financial Statements /Budget Year to Date
GM Kumm presented the June 2012 financial statements /budget year -to -date.
After discussion, a motion was made by Commissioner Hanson, seconded by
Secretary Johnson to approve the financial statements /budget year -to -date. Motion
was unanimously carried.
4. Review Policies and Requirements Booklet
GM Kumm presented policies and requirements booklet, sections: Hutchinson
Utilities Commission; policies and requirements brochure; and establishing a new
electric /natural gas account. This is part of our policy review and no changes are
requested at this time.
1
5. Approve Changes to Exempt and Non - Exempt Handbooks
GM Kumm presented changes to the exempt and non - exempt handbooks,
sections: jury duty; volunteer fire or rescue squad duty; and retirement program.
The changes were made to clean up verbiage. A motion was made by Secretary
Johnson, seconded by Commissioner Hanson to approve the changes to the
exempt and non - exempt handbooks, sections: jury duty; volunteer fire or rescue
squad duty, and retirement program. Motion was unanimously carried. (Changes
attached.)
6. Approve After Hours Reconnection Policy
At the June 27 regular commission meeting, GM Kumm presented a draft of the
After Hours Reconnection Policy recommended by staff for the Board to review.
The Board suggested changing `and from 9:00 p.m. to 7:30 a.m.' to `nor from 9:00
p.m. to 7:30 a.m.' The Board also added the sentence 'Payments must be made
prior to reconnecting utilities.' to the last paragraph. After discussion, the Board
tabled the policy and until the next regular commission meeting.
7. Approve Requisition #4986 for Installation of Hutchinson Utilities' Brownton
Interconnect Facilities
John Webster presented requisition #4986 for installation of Hutchinson Utilities'
Brownton interconnect facilities from Q3 Contracting in the amount of $36,013.
After discussion, a motion was made by Commissioner Morrow, seconded by
Secretary Johnson to approve requisition #4986 for installation of Hutchinson
Utilities' Brownton interconnect facilities from Q3 Contracting in the amount of
$36,013. Motion was unanimously carried. (Requisition attached.)
8. Division Reports
Finance — Jared Martig
Nothing to report
Gas — John Webster
• This afternoon, there was a natural gas line hit on 5t" Avenue which was the
first incident this year. No injuries were reported.
• 100% reimbursement received from FEMA for damaged facilities in the July
2011 storm.
• Thursday evening's presentation meeting with City of Brownton cancelled;
United Farmers Cooperative was not prepared yet.
• Purchased another strip of natural gas for an 8 -year deal at $5.04 from
November 2013 to October 2021.
Electric — Steve Lancaster
Nothing to report
2
9. Legal Update
As a follow up to the June 27, 2012 regular commission meeting, Attorney Sebora
reported back to the Board with a draft of changes to the HUC By -Laws by adding
a section called, "Cooperation with City." This section addresses: 1) the City
Administrator attending all commission meetings; and 2) shared services between
the City of Hutchinson and Hutchinson Utilities Commission. The Board will review
the changes to the HUC By -Laws and discuss them in the next regular commission
meeting.
Attorney Sebora also drafted a shared services contract between the City and
HUC. The contract is being reviewed by City directors and will then be forwarded
to HUC for review and approval.
Unfinished Business
• Discuss Potential Capacity Sale
GM Kumm gave an update on selling capacity to an interested party.
• Discuss Credit Card Payments
GM Kumm discussed working on restricting credit card payments to residential
customers only and no commercial or industrial customers as it is costing HUC
a substantial amount of money in processing fees. Commissioner Hanson
suggested looking into the recent lawsuit settlement which would allow
businesses to charge customers an extra fee for paying with a credit card. GM
Kumm will have staff research and report back to the Board at the next regular
commission meeting.
• Discussion Regarding Pre -Pay for Natural Gas
GM Kumm and John Webster continue to work on pre -pay for natural gas
which would result in an annual savings of approximately $135,000.
• Schedule Strategic Planning Meeting
In June's regular commission meeting, President Bordson requested
Commissioners submit strategic planning discussion items to Kim Koski and
GM Kumm. The items have been compiled and grouped together in one
document. A motion was made by Secretary Johnson, seconded by
Commissioner Hanson to schedule Wednesday, August 29 from 8:00 a.m. to
11:00 a.m. for a strategic planning workshop with the location to be determined.
Motion was unanimously carried.
• Intellectual Property Committee — Patent
President Bordson discussed HUC pursued getting the rights for the statistical
model back from the software company. The patent study has been turned over
to Attorney Sebora to manage accordingly and work with David Fairbairn of
Kinney & Lange Law Firm. A motion was made by Secretary Johnson,
seconded by Commissioner Hanson to enter into an agreement with David
Fairbairn of Kinney & Lange Law Firm to work with Attorney Sebora on the
patent study.
3
• Policy on Disposal of Surplus Property
Commissioner Hanson inquired about the update on the changes on this policy.
Jared Martig and Attorney Sebora are meeting next week to work on the policy.
The changes will then be presented to the Board for approval.
New Business
There being no further business, a motion was made by Commissioner Hanson,
seconded by Commissioner Morrow to adjourn the meeting at 4:08 p.m. Motion was
unanimously carried.
Leon Johnson, Secretary
ATTEST ' �''
D g B dson, President
51
EXEMPT
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 -HUC 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
In the event of an HUC emergency, the General Manager reserves the right to retain
essential employees from Hutchinson volunteer fire or rescue squad duties or require
employees to return to their HUC duties and assist the operation of the Utilitie HUC.
HUC employees who are called out as members of the Hutchinson volunteer fire or
rescue squad while on duty with HUC will be paid up to four hours regular pay while on
the emergency call.
RETIREMENT PROGRAM
The Utilities HUC 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
Ut+l+t) - HUC and the employee contribute to PERA. Information on PERA is available +4
the BUSiRess n;vusuen.from the Customer /Human Relations Manaaer.
NON - EXEMPT
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 �+— ties—HUC 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
In the event of an HUC emergency, the General Manager reserves the right to retain
essential employees from Hutchinson volunteer fire or rescue squad duties or require
employees to return to their HUC duties and assist the operation of the I tilitie HUC.
HUC employees who are called out as members of the Hutchinson volunteer fire or
rescue squad while on duty with HUC will be paid up to four hours regular pay while on
the emergency call.
RETIREMENT PROGRAM
The Utilities HUC 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-HUC and the employee contribute to PERA. Information on PERA is available in
the B swnes6 Dives! rom the Customer /Human Relations Manager.
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