Loading...
11-28-2012 HUCMMINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, November 28, 2012 Call to order — 3:00 p.m. President Bordson called the meeting to order. Members present: President Dwight Bordson; Vice President Craig Lenz; Secretary Leon Johnson; Commissioner Anthony Hanson; Commissioner Monty Morrow; Attorney Marc Sebora; General Manager Michael Kumm. Guest: Terry Davis (Hutchinson Leader) 1. Approve Minutes of October 31, 2012 Regular Meeting The minutes of the October 31, 2012 regular meeting were reviewed. A motion was made by Commissioner Morrow, seconded by Commissioner Hanson to approve the minutes. Motion was unanimously carried. 2. Summary of Closed Meeting Proceedings for the General Manager Performance Appraisal Held on October 31, 2012 President Bordson presented the Summary of Closed Meeting Proceedings for the General Manager Performance Appraisal. After discussion, a motion was made by Vice President Lenz, seconded by Secretary Johnson to approve the Summary of Closed Meeting Proceedings for the General Manager Performance Appraisal Held on October 31, 2012. Motion was unanimously carried. (Summary attached.) 3. Consideration for Approval of Employment Contract with General Manager, Mike Kumm President Bordson presented the Employment Contract with General Manager, Mike Kumm. After discussion, a motion was made by Secretary Johnson, seconded by Vice President Lenz to approve the Employment Contract with General Manager, Mike Kumm. Motion was unanimously carried. (Employment Contract attached.) 4. Ratify Payment of Bills for October 2012 The October 2012 payables were discussed. A motion was made by Vice President Lenz, seconded by Commissioner Hanson to ratify the payment of bills in the amount of $3,091,218.10. (detailed listing in payables book). Motion was unanimously carried. 5. Approve Financial Statements /Budget Year to Date GM Kumm presented the October 2012 financial statements /budget year -to -date. After discussion, a motion was made by Vice President Lenz, seconded by Commissioner Morrow to approve the financial statements /budget year -to -date. Motion was unanimously carried. 6. Approve Changes to Mission Statement GM Kumm presented the changes to the Mission Statement. These changes reflect the changes the Board requested. A motion was made by Commissioner 1 Hanson, seconded by Secretary Johnson to approve the changes to the Mission Statement. Motion was unanimously carried. (Changes attached.) 7. Approve Changes to Vision Statement 2 GM Kumm presented changes to Vision Statement 2. The Board discussed the need to create criteria to complete Strategic Objective 1: Attract Quality Candidates. The Board will discuss the criteria further in the December regular commission meeting. A motion was made by Secretary Johnson, seconded by Vice President Lenz to approve changes to Vision Statement 2. Motion was unanimously carried. (Vision Statement 2 attached.) 8. Discuss Changes to the HUC By -Laws Attorney Sebora presented the changes to HUC By -Laws: adding Section 6 — Cooperation with City, which addresses the invitation for City Administrator to attend HUC commission meetings along with implementing methods of sharing employees, equipment and other resources between City and HUC. The Board recommended adding verbiage "or designee" after each instance of "City Administrator." After discussion, a motion was made by Commissioner Hanson, seconded by Commissioner Morrow to add Section 6 — Cooperation with City to the existing HUC By -Laws with the Board recommended addition of "or designee" after each instance of "City Administrator." Motion was unanimously carried. (Changes attached.) 9. Discuss 2013 Budget GM Kumm gave a brief overview of the 2013 budget and invited the Commissioners to contact him with questions or suggested changes before the December special meeting. GM Kumm explained the focus for 2013 was to fill up the rate stabilization funds. 10. Schedule Special Commission Meeting for Approval of 2013 Budget Discussion was held to schedule a special meeting for the 2013 budget approval for Thursday, December 13 at Noon. A motion was made by Commissioner Hanson, seconded by Vice President Lenz to schedule a special meeting for the 2013 budget approval for Thursday, December 13 at Noon. Motion was unanimously carried. 11. Approve 2013 Dental Insurance Jan Sifferath presented the 2013 dental insurance options explaining securing insurance with Guardian would mean HUC would be fully insured instead of self - insured as in the past with Midwest Dental. Guardian also includes a benefit rollover which allows employees to roll over unused benefit dollars into future years with no cap. Staff recommends Guardian which would result in a decrease in premium for both single and family coverage. A motion was made by Commissioner Hanson, seconded by Vice President Lenz to approve Guardian as HUC's 2013 dental insurance provider. Motion was unanimously carried. (2013 Dental Options attached.) 12. Approve Changes to Long -Term Disability for Exempt Employees 2 Jan Sifferath presented changes to long -term disability for exempt employees only. After discussion, a motion was made by Secretary Johnson, seconded by Commissioner Hanson to approve changes to long -term disability for exempt employees. Motion was unanimously carried. (Changes attached.) 13. Approve 2012 Accounts Receivable Charge -Offs Jan Sifferath presented the 2012 accounts receivable charge -offs totaling $4,067.15, which is lower than previous years due to the Revenue Recapture program. After discussion, a motion was made by Vice President Lenz, seconded by Commissioner Morrow to approve the 2012 accounts receivable charge -offs. Motion was unanimously carried. (2012 Charge -Offs attached. 14. Approve HUC in Support of Rescinding Ordinance 132.25 GM Kumm explained the purpose of this ordinance does not exist anymore as there is already a State statute that covers the purpose of this ordinance. A motion was made by Vice President Lenz, seconded by Commissioner Hanson to approve support of rescinding Ordinance 132.25. Commissioner Morrow abstained from the voting because of a conflict of interest. Motion was carried. (Ordinance 132.25 attached.) 15. Declaring Recognition /Holiday Party on December 14, 2012 as an Open Meeting A motion was made by Vice President Lenz, seconded by Commissioner Hanson to declare the Recognition /Holiday party on December 14, 2012 as an open meeting. Motion was unanimously carried. 16. Discuss Date, Times and Potential Agenda Items for Joint Meeting with City Discussion held regarding 2013 joint meeting with City. Board will review last year's agenda items and discuss further in an upcoming regular meeting. 17. Reschedule December 26 Regular Commission Meeting to January 2, 2013 Discussion was held to reschedule December's regular meeting to January 2, 2013 at 3:00 p.m. A motion was made by Commissioner Hanson, seconded by Vice President Lenz to reschedule December's regular meeting to January 2, 2013 at 3:00 p.m. Motion was unanimously carried. 18. Approve Changes to Policies and Requirements Booklet GM Kumm presented changes to the policies and requirements booklet, sections: • Automatic Bill Payment Plan • Budget Payment Plan • Landlord Acknowledgement Staff recommended changes to Budget Payment Plan by adding "who have been at their present location for 12 months or greater." to the first sentence, due to past practice. No changes were recommended for sections Automatic Bill Payment Plan, and Landlord Acknowledgement. After further discussion, a motion was made by Secretary Johnson, seconded by Vice President Lenz to approve the changes to the policies and requirements booklet, sections: automatic bill payment 3 plan; budget payment plan; and landlord acknowledgement. Motion was unanimously carried. (Changes attached.) 19. Approve Changes to Exempt and Non - Exempt Handbooks GM Kumm presented changes to the exempt and non - exempt handbooks, sections: hiring; probationary period upon hiring; and temporary employees. No changes were recommended for sections hiring, and temporary employees. In section, probationary period upon hiring, staff recommended replacing "Commission" with "General Manager ", due to past practice. Also, in section probationary period upon hiring, the Board recommended changes to the second sentence to read: "During this qualifying period, the employee's Director, Manager or Supervisor should discuss with the employee, the employee's progress in becoming fully acquainted with the job and co- workers. A motion was made by Secretary Johnson, seconded by Commissioner Hanson to approve the changes to the exempt and non - exempt handbooks, section: probationary period upon hiring. Motion was unanimously carried. (Changes attached.) 20. Communication from the City Administrator City Administrator Carter was absent. 21. Division Reports Finance — Jared Martig Trane is working all week on conservation upgrades to HUC office building. Business — Jan Sifferath Working on end -of year benefit updates. Electric — Steve Lancaster Projecting to start unit 5 in a couple weeks. Conducting emissions and performance testing on January 7, 2013. GM Kumm reported HUC was awarded the capacity contract with Dairyland Power Cooperative. 22. Legal Update Nothing to report Unfinished Business Update from City Attorney on Patent for the Nodal Delivery in Energy Networks GM Kumm met with patent attorney and will examples of how HUC has used the model. Discussion Regarding Pre -Pay for Natural Gas GM Kumm reported no update. 10 Real -Time Auto - Suggestion for provide him a flow chart and Discuss Credit Card Payments Jan Sifferath is continuing to work on implementing a utility interchange agreement for HUC which will result in a substantial decrease in credit card processing fees. New Business Set Date for PILOT Discussion The Board requested this item be put on the December regular commission meeting agenda (rescheduled for January 2, 2013). After discussion, President Bordson requested GM Kumm bring alternative PILOT recommendations back to the Board. There being no further business, a motion was made by Commissioner Hanson, seconded by Vice President Lenz to adjourn the meeting at 5:18 p.m. Motion was unanimously carried. Dwight Bordson, President 5 Leon Johnson, Secretary MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, November 28, 2012 Call to order — 3:00 p.m. President Bordson called the meeting to order. Members present: President Dwight Bordson; Vice President Craig Lenz; Secretary Leon Johnson; Commissioner Anthony Hanson; Commissioner Monty Morrow; Attorney Marc Sebora; General Manager Michael Kumm. Guest: Terry Davis (Hutchinson Leader) 1. Approve Minutes of October 31, 2012 Regular Meeting The minutes of the October 31, 2012 regular meeting were reviewed. A motion was made by Commissioner Morrow, seconded by Commissioner Hanson to approve the minutes. Motion was unanimously carried. 2. Summary of Closed Meeting Proceedings for the General Manager Performance Appraisal Held on October 31, 2012 President Bordson presented the Summary of Closed Meeting Proceedings for the General Manager Performance Appraisal. After discussion, a motion was made by Vice President Lenz, seconded by Secretary Johnson to approve the Summary of Closed Meeting Proceedings for the General Manager Performance Appraisal Held on October 31, 2012. Motion was unanimously carried. (Summary attached.) 3. Consideration for Approval of Employment Contract with General Manager, Mike Kumm President Bordson presented the Employment Contract with General Manager, Mike Kumm. After discussion, a motion was made by Secretary Johnson, seconded by Vice President Lenz to approve the Employment Contract with General Manager, Mike Kumm. Motion was unanimously carried. (Employment Contract attached.) 4. Ratify Payment of Bills for October 2012 The October 2012 payables were discussed. A motion was made by Vice President Lenz, seconded by Commissioner Hanson to ratify the payment of bills in the amount of $3,091,218.10. (detailed listing in payables book). Motion was unanimously carried. 5. Approve Financial Statements /Budget Year to Date GM Kumm presented the October 2012 financial statements /budget year -to -date. After discussion, a motion was made by Vice President Lenz, seconded by Commissioner Morrow to approve the financial statements /budget year -to -date. Motion was unanimously carried. 6. Approve Changes to Mission Statement GM Kumm presented the changes to the Mission Statement. These changes reflect the changes the Board requested. A motion was made by Commissioner 1 Hanson, seconded by Secretary Johnson to approve the changes to the Mission Statement. Motion was unanimously carried. (Changes attached.) 7. Approve Changes to Vision Statement 2 GM Kumm presented changes to Vision Statement 2. The Board discussed the need to create criteria to complete Strategic Objective 1: Attract Quality Candidates. The Board will discuss the criteria further in the December regular commission meeting. A motion was made by Secretary Johnson, seconded by Vice President Lenz to approve changes to Vision Statement 2. Motion was unanimously carried. (Vision Statement 2 attached.) 8. Discuss Changes to the HUC By -Laws Attorney Sebora presented the changes to HUC By -Laws: adding Section 6 — Cooperation with City, which addresses the invitation for City Administrator to attend HUC commission meetings along with implementing methods of sharing employees, equipment and other resources between City and HUC. The Board recommended adding verbiage "or designee" after each instance of "City Administrator." After discussion, a motion was made by Commissioner Hanson, seconded by Commissioner Morrow to add Section 6 — Cooperation with City to the existing HUC By -Laws with the Board recommended addition of "or designee" after each instance of "City Administrator." Motion was unanimously carried. (Changes attached.) 9. Discuss 2013 Budget GM Kumm gave a brief overview of the 2013 budget and invited the Commissioners to contact him with questions or suggested changes before the December special meeting. GM Kumm explained the focus for 2013 was to fill up the rate stabilization funds. 10. Schedule Special Commission Meeting for Approval of 2013 Budget Discussion was held to schedule a special meeting for the 2013 budget approval for Thursday, December 13 at Noon. A motion was made by Commissioner Hanson, seconded by Vice President Lenz to schedule a special meeting for the 2013 budget approval for Thursday, December 13 at Noon. Motion was unanimously carried. 11. Approve 2013 Dental Insurance Jan Sifferath presented the 2013 dental insurance options explaining securing insurance with Guardian would mean HUC would be fully insured instead of self - insured as in the past with Midwest Dental. Guardian also includes a benefit rollover which allows employees to roll over unused benefit dollars into future years with no cap. Staff recommends Guardian which would result in a decrease in premium for both single and family coverage. A motion was made by Commissioner Hanson, seconded by Vice President Lenz to approve Guardian as RUC's 2013 dental insurance provider. Motion was unanimously carried. (2013 Dental Options attached.) 12. Approve Changes to Long -Term Disability for Exempt Employees I Jan Sifferath presented changes to long -term disability for exempt employees only. After discussion, a motion was made by Secretary Johnson, seconded by Commissioner Hanson to approve changes to long -term disability for exempt employees. Motion was unanimously carried. (Changes attached.) 13. Approve 2012 Accounts Receivable Charge -Offs Jan Sifferath presented the 2012 accounts receivable charge -offs totaling $4,067.15, which is lower than previous years due to the Revenue Recapture program. After discussion, a motion was made by Vice President Lenz, seconded by Commissioner Morrow to approve the 2012 accounts receivable charge -offs. Motion was unanimously carried. (2012 Charge -Offs attached. 14. Approve HUC in Support of Rescinding Ordinance 132.25 GM Kumm explained the purpose of this ordinance does not exist anymore as there is already a State statute that covers the purpose of this ordinance. A motion was made by Vice President Lenz, seconded by Commissioner Hanson to approve support of rescinding Ordinance 132.25. Commissioner Morrow abstained from the voting because of a conflict of interest. Motion was carried. (Ordinance 132.25 attached.) 15. Declaring Recognition /Holiday Party on December 14, 2012 as an Open Meeting A motion was made by Vice President Lenz, seconded by Commissioner Hanson to declare the Recognition /Holiday party on December 14, 2012 as an open meeting. Motion was unanimously carried. 16. Discuss Date, Times and Potential Agenda Items for Joint Meeting with City Discussion held regarding 2013 joint meeting with City. Board will review last year's agenda items and discuss further in an upcoming regular meeting. 17. Reschedule December 26 Regular Commission Meeting to January 2, 2013 Discussion was held to reschedule December's regular meeting to January 2, 2013 at 3:00 p.m. A motion was made by Commissioner Hanson, seconded by Vice President Lenz to reschedule December's regular meeting to January 2, 2013 at 3:00 p.m. Motion was unanimously carried. 18. Approve Changes to Policies and Requirements Booklet GM Kumm presented changes to the policies and requirements booklet, sections: • Automatic Bill Payment Plan • Budget Payment Plan • Landlord Acknowledgement Staff recommended changes to Budget Payment Plan by adding "who have been at their present location for 12 months or greater." to the first sentence, due to past practice. No changes were recommended for sections Automatic Bill Payment Plan, and Landlord Acknowledgement. After further discussion, a motion was made by Secretary Johnson, seconded by Vice President Lenz to approve the changes to the policies and requirements booklet, sections: automatic bill payment �91 plan; budget payment plan; and landlord acknowledgement. Motion was unanimously carried. (Changes attached.) 19. Approve Changes to Exempt and Non - Exempt Handbooks GM Kumm presented changes to the exempt and non - exempt handbooks, sections: hiring; probationary period upon hiring; and temporary employees. No changes were recommended for sections hiring, and temporary employees. In section, probationary period upon hiring, staff recommended replacing "Commission" with "General Manager", due to past practice. Also, in section probationary period upon hiring, the Board recommended changes to the second sentence to read: "During this qualifying period, the employee's Director, Manager or Supervisor should discuss with the employee, the employee's progress in becoming fully acquainted with the job and co- workers. A motion was made by Secretary Johnson, seconded by Commissioner Hanson to approve the changes to the exempt and non - exempt handbooks, section: probationary period upon hiring. Motion was unanimously carried. (Changes attached.) 20. Communication from the City Administrator City Administrator Carter was absent. 21. Division Reports Finance — Jared Martig • Trane is working all week on conservation upgrades to HUC office building. Business — Jan Sifferath • Working on end -of year benefit updates. Electric — Steve Lancaster • Projecting to start unit 5 in a couple weeks. Conducting emissions and performance testing on January 7, 2013. GM Kumm reported HUC was awarded the capacity contract with Dairyland Power Cooperative. 22. Legal Update Nothing to report Unfinished Business • Update from City Attorney on Patent for the Nodal Delivery in Energy Networks GM Kumm met with patent attorney and will examples of how HUC has used the model. • Discussion Regarding Pre -Pay for Natural Gas GM Kumm reported no update. in Real -Time Auto - Suggestion for provide him a flow chart and • Discuss Credit Card Payments Jan Sifferath is continuing to work on implementing a utility interchange agreement for HUC which will result in a substantial decrease in credit card processing fees. New Business • Set Date for PILOT Discussion The Board requested this item be put on the December regular commission meeting agenda (rescheduled for January 2, 2013). After discussion, President Bordson requested GM Kumm bring alternative PILOT recommendations back to the Board. There being no further business, a motion was made by Commissioner Hanson, seconded by Vice President Lenz to adjourn the meeting at 5:18 p.m. Motion was unanimously carried. ATTEST: DWghl Bor on, President 5 HUTCHINSON UTILITIES COMMSSION SUMMARY OF CLOSED MEETING PROCEEDINGS GENERAL MANAGER ANNUAL PERFORMANCE REVIEW SESSION October 31, 2012 On October 31, 2012 the Hutchinson Utilities Commission closed its meeting at 4:23 p.m. to conduct the annual performance review for the General Manager, Michael Kumm. Individuals present included Commission President Dwight Bordson, Commission Vice President Craig Lenz, Commission Secretary Leon Johnson, Commissioner Anthony Hanson, Commissioner Monty Morrow, General Manager Michael Kumm and City Attorney Marc Sebora. Mr. Kumm exercised his right to close the proceedings to the public. Motion by Vice President Lenz, second by Commissioner Hanson, to close the meeting at 4:23 p.m. The motion passed unanimously. The Commission then proceeded into a closed session. The Commission reviewed with Mr. Kumm his performance for the period of November 30`h, 2011 through October 31, 2012. Mr. Kumm's performance in the following categories was reviewed by the Commission: Organizational Management, Fiscal /Business Management, Program Development, Relationship & Communication with the Commission, Long -Range Planning, and Relationship with Public & Outside Organizations. The appraisal system allows an individual to be rated on the scale of ratings range including Unsatisfactory (1), Needs Improvement (2), Meets Job Requirements (3), Exceeds Job Requirements (4), and Outstanding (5). The consensus of the Commission is that Mr. Kumm's cumulative performance for the review period was found to "meet job requirements" on the ratings scale with an overall appraisal score of 3.4. The Commission considered recommendations for General Manager tasks /goals for 2013. These include: 0 Formulate a succession plan for the General Manager's position Motion by Commissioner Hanson, seconded by Secretary Johnson, to increase the general manager's salary by 1.796% to $170,000.00 and to offer Mr. Kumm a contract on those terms. A roll call vote was taken as follows: Commissioner Hanson — aye, Secretary Johnson —aye, President Bordson — aye, Vice President Lenz —aye, Commissioner Morrow — nay. The motion passed. Motion by Vice President Lenz, second by Commissioner Hanson, to open the closed proceedings. The motion passed unanimously. Motion by Secretary Johnson, second by Commissioner Hanson, to adjourn the meeting at 5:17 p.m. The motion passed unanimously. Hutchinson Utilities Commission General Manager Employment Agreement Introduction This Agreement made and entered into this 1st day of December, 2012, by and between the Hutchinson Utilities Commission, a Minnesota Municipal Corporation, (hereinafter called "Employer ") and Michael L. Kumm, (hereinafter called "Employee ") both of whom agree as follows: Section 1: Term The term of this agreement shall be for an initial period of one (1) year from December 1, 2012, to November 30, 2013. For a period of three months after the date of this agreement, Employee and Employer shall have the right to request modifications to this agreement, subject to approval of the other party. Section 2: Compensation The Employer agrees to pay Employee an annual base salary of $170,000.00 as conditioned upon any leave credit in lieu of compensation policy enacted by the Commission. Section 3: Vehicle Use Employee shall be entitled to the use of a utilities vehicle for business related purposes. Section 4: Employer's Policies Except as set out in this agreement, Employee shall abide by all of Employer's rules, regulations and policies. In a like manner, Employee shall be entitled to all other benefits available to Employers' exempt employees. Hu 'nson Utilities Commission Dwi ordson, President Attest: Leon Johnson, cretary Michael L. Kumm, General Manager Mission The Hutchinson Utilities Commission will provide economical, reliable electric and natural gas and related services within our service territory and the Midwest, while contributing the economic vitality of- to the City of Hutchinson, . Values We value the concepts of local control, innovativeness, flexibility in our decision making, and conduct our business in an environmentally responsible manner. We value our community our customers and our employees. We value an employee friendly workplace, provide skills training, and provide a safe work environment. Vision Statement Two — Leadership and Governance As a publicly owned enterprise in a competitive environment, the Utilities is a role model for the public sector with its streamlined form of governance. While the city maintains ultimate ownership eel, the utilities and its board have autonomy for the critical operation and policy decisions that are necessary for competitive success. Hutchinson Utilities Commission has the eafned -this freedom to pursue courses of action as required within broad policy guidelines. Strategic Objective 1: Attract quality candidates. Assure individuals appointed to public power boards have the time, background and commitment to make effective contributions to utility governance. Measurement: Current biographies of Commissioner on HUC Web -site Strategic Objective 2: Educate policymakers. Provide sufficient orientation, information and education to permit board and council members to perform their jobs competently. Particularly since HUC has term limits, ready information on roles, responsibilities, issues, the value of the utility, and utility performance will help to maximize and ensure new policymakers capabilities and effectiveness. Assure governing bodies meet legal requirements and adhere to utility policies and procedures, including: open meetings and records laws, audit and purchasing requirements, conflict -of- interest statutes, meetings procedures and utility policies. Assure boards and councils understand their roles and responsibilities (and how they differ from management's) and regularly examine procedures to assure governing boards are operating efficiently. Measurement: Formal Orientation Program, Annual Meeting Calendar, Weekly Staff meeting minutes sent to commissioners, Joint meeting between HUC and Commission, Up to date policies, 360 Degree feedback for Commissioners(every five years), 360 Degree feedback for Management(every five years), Current Position Descriptions for Commissions and Officers of Hutchinson Utilities Commission. Strategic Objective 3: Run quality meetings. Meetings must be run effectively and efficiently, streamlining processes to avoid unnecessary burdens on the public's and policymaker's time. Measurement: Regularly scheduled meeting no longer than two hours. Vision Statement Two — Leadership and Governance As a publicly owned enterprise in a competitive environment, the Utilities is a role model for the public sector with its streamlined form of governance. While the city maintains ultimate ownership eefAfel, the utilities and its board have autonomy for the critical operation and policy decisions that are necessary for competitive success. Hutchinson Utilities Commission has the earned -this freedom to pursue courses of action as required within broad policy guidelines. Strategic Obiective 1: Attract quality candidates. Assure individuals appointed to public power boards have the time, background and commitment to make effective contributions to utility governance. Tasks: 1. Commission should communicate to the City Council the need for orderly transition as it relates to Commission appointments. 2. The Commission should communicate the need to formalize the application process for commissioner appointments, by ensuring the individual has the skill set that conform to the needs of HUC. 3. Encourage commissioners to keep resumes and backgrounds up to date. • Management annually distribute biography on web -site to commissioners for potential updates. 4. Continue to have commissioners backgrounds published on HUC web -site. Strategic Objective 2: Educate policymakers. Provide sufficient orientation, information and education to permit board and council members to perform their jobs competently. Particularly since HUC has term limits, ready information on roles, responsibilities, issues, the value of the utility, and utility performance will help to maximize and ensure new policymakers capabilities and effectiveness. Assure governing bodies meet legal requirements and adhere to utility policies and procedures, including: open meetings and records laws, audit and purchasing requirements, conflict -of- interest statutes, meetings procedures and utility policies. Assure boards and councils understand their roles and responsibilities (and how they differ from management's) and regularly examine procedures to assure governing boards are operating efficiently. Strategy 1. Keep Hutchinson Utility Commissioners informed on operations at Hutchinson Utilities, so the commission can communicate this information to its stakeholders, and if necessary, seek their input. Tasks: 1. Continue with formal orientation program for newly appointed Commissioners. 2. Continue with the annual Hutchinson Utilities Commission meeting calendar 3. Continue with publishing minutes from weekly staff meetings to the commission. 4. Maintain numerical performance indicators, so the commission can provide this information to the key stakeholders. The performance indicators come in various forms, such as financial, operational, reliability, etc. 5. Continue with an annual joint meeting between the City Council and the Hutchinson Utilities Commission. 6. Continue with formal policy review. A schedule has been prepared and is being followed. At least one policy will be reviewed at every commission meeting, at the end of 2 -1/2 years all policies will have been reviewed, then the policy review repeats itself. The formal policy review is done for a couple of reasons, one is to ensure our policies are kept up to date, and the second is to remind the commission of the HUC policies, so they can evaluate and modify as necessary. 7. Continue with Managements review form of Commissioners. This should be done every five years. (2005, 2010, 2015, etc.) 8. Continue with Employee review form of Management. This should be done every five years (2005, 2010, 2015, etc.), and results of the review provided to the Commission. 9. Continue strategic planning discussions with management and commission. Strategy 2. Ensure commissioners are educated on the rules and responsibilities of being a commissioner. Ta.k-;- 1. Ensure a copy of the policies the Commission deal with on a routine basis are made available and accessible to the commissioners. Copy in the Boardroom Electronically Establish an intranet, accessible outside of the City /HUC internal network. 2. Maintain the open meeting law and also public record policy. These policies will be reviewed in accordance with the policy review schedule. 3. Establish policy for Special Commissioner meetings, and closed commissioner meetings. 4. Ensure the City is provided with a copy of the financials, financial performance metrics, HUC agenda, and a copy of the minutes from the previous meeting. The intent of providing this information is so those items can be distributed to the City Council. 5. Maintain the job description, or a list of Commissioner's rules and responsibilities. This will be reviewed at the time of the General Managers review. Strategic Objective 3: Run quality meetings. Board and council meetings must be run effectively and efficiently, streamlining processes to avoid unnecessary burdens on the public's and policymaker's time. Tasks: 1. The General Manager will prepare, review and submit the agenda to the presiding officer. The presiding officer of the upcoming commission meeting will always review and approve agenda prior to its distribution to the rest of the commissioners. 2. Presiding Officer of the upcoming commission meeting will know and understand items on the agenda to ensure focus is placed on agenda item issues. 3. As problems are identified management staff will always prepare and present a recommended solution. 4. When preparing an agenda, try to ensure the meeting will last no longer than two hours. BY - LAWS Vkmmended November OF HUTCHINSON UTILITIES COMMISSION HUTCHINSON, MINNESOTA ARTICLE I Office of Commission SECTION - 1 The office of the Hutchinson Utilities Commission is located at 225 Michigan Street, Hutchinson, Minnesota. ARTICLE II Meetings Section - 1 Regular meetings of the Hutchinson Utilities Commission will be held at 3:00 p.m. on the last Wednesday of each month at the utility office. Section - 2 Special and emergency meetings of the Hutchinson Utilities Commission may be called at any time by the President or by any two Commissioners to be held at the Commissioner's room or at such place or places as the Commissioners may from time to time designate. Section - 3 Notice of all special and emergency meetings of the Hutchinson Utilities Commission shall comply with public 1 meeting laws and each Commissioner shall be notified by telephone or by letter. Section - 4 A majority of the Commissioners shall constitute a quorum for the transaction of business, and the votes of a majority of the Commissioners present, shall be sufficient to adopt any motion or resolution. The votes of members on any action shall be taken by ayes and nays and recorded in the minutes. ARTICLE III Commissioners, Officers and Employees SECTION - 1 The Hutchinson Utilities Commission, by resolution, shall appoint a General Manager and such other employees as it shall deem necessary, who shall hold their offices for such term and shall exercise such powers and perform such duties as shall be determined from time to time by the Commission. SECTION - 2 The Hutchinson Utilities Commission, upon recommendation of the General Manager and the filing of applications, shall appoint all staff employees of the Hutchinson Utilities. SECTION - 3 Each member of the Hutchinson Utilities Commission shall be entitled to be reimbursed for his actual and 2 necessary traveling and hotel expenses incurred whenever it shall be necessary for him to travel outside the City of Hutchinson in carrying out his duties, which travel may be required of him by law or by vote or resolution of the Commission. The compensation of members and amounts due them as reimbursement for expenses shall be paid at the end of each month upon itemized statements duly verified. SECTION - 4 Any officer, agent or employee elected or appointed by the Commission may be removed at any time by the Commission. SECTION - 5 The salaries of all officers, agents and employees of the Commission shall be fixed by the Commission. SECTION - 6 The President shall preside at all meetings at which he is present. In the absence of the President, the Vice President shall assume all of his duties. He shall make such reports to the Council as are required of the Commission and shall perform such other duties as are incident to his office or are properly required of him. SECTION - 7 The Secretary shall sign, execute or acknowledge with the President, all instruments authorized by the Commission and shall perform such other duties as prescribed 3 from time to time by the Commission or as are incident to his office. SECTION - 8 OFFICERS The officers of the commission shall be a President and Vice President. SECTION - 9 ELECTION AND TENURE The Commission shall annually elect the officers of the commission at its January meeting. Such elected officers will assume their offices the first day of February. Each officer shall hold office for a one- year term and until such officer's successor is elected. There shall be a limit of two successive terms that an officer may serve. SECTION - 10 TERMS OF COMMISSIONERS The appointment and length of service of each Commissioner shall be set forth in the Hutchinson City Charter. Each Commissioner's term shall expire on December 31St of the last year of that Commissioner's appointed term except, Commissioner shall continue in office until their successor has been appointed and qualified. El ARTICLE IV Appointive Officers of Hutchinson Utilities Commission SECTION - 1 GENERAL MANAGER A. The General Manager shall be the chief executive officer of Hutchinson Utilities Commission. He /she shall be chosen by the Commission on the basis of their executive and administrative qualifications for the supervision and direction of all operations and business of Hutchinson Utilities properties. All other things being equal, the Commission shall appoint as General Manager a person with experience in construction, operation and management of public utilities. No member of the Commission shall, during the time for which appointed or within two years thereafter, be chosen as General Manager. In case of absence or disability of the General Manager, the Commission shall designate an appropriate replacement to perform the duties of the office during such absence or disability. B. The General Manager shall have full charge and control of the construction of all work under the jurisdiction of the Commission, the maintenance and operation thereof, and the 5 administration of the business affairs of the Commission. The powers of the General Manager shall be: 1. To see that these By -Laws and all rules and regulations of the Commission are enforced. 2. To see that the operation, construction and maintenance of the Hutchinson Utilities properties conform to all provisions of the City Charter. 3. To see that all supplies and materials are purchased according to the policies on purchasing. 4. To attend all meetings of the Hutchinson Utilities Commission, to submit reports of the affairs of the Hutchinson Utilities Commission and to participate in the discussion of all matters coming before the Commission. S. To serve as the Attorney -in -Fact of the Hutchinson Utilities Commission pursuant to any general or specific Power of Attorney or other agency document adopted by the Hutchinson Utilities Commission by a resolution of the Commission. 6. To keep the Commissioners advised as to the financial condition and future needs of the department, and to prepare and submit an annual budget, and to furnish quarterly budgets to the Commission. 7. To prepare or cause to be prepared, all plans and specifications for the construction of the works of the Commission. 8. To devote his entire time to the business of the Commission. 9. To prepare or have prepared for presentation to the Commission for its consideration, approval, rules and regulations as follows: A. Information and requirements for electrical service. B. Information and requirements for natural gas service. C. Management policy in relation to employees compensation. D. Manual of accounting instructions. 10. To perform such other and additional duties as the Commission may require. 7 SECTION - 2 The duties of all other appointees and employees shall be prescribed from time to time by the General Manager with approval of the Commission. ARTICLE V Certain Rules, Regulations and Procedures of Hutchinson Utilities Commission SECTION - 1 ACCOUNTING A. The books and accounts of the Commission shall be kept in so far as practicable in conformity with the uniform system of accounts as prescribed by the Federal Energy Regulatory Commission and so as to facilitate the annual reporting of all transactions of the Commission funds. 1. The present value of the electric system shall be taken as the actual historical cost of the property in use and useful in the production and distribution of electrical energy. 2. The present value of the natural gas system shall be taken as the actual historical cost of the property in use and useful in the distribution of natural gas. Ez SECTION - 2 RATES A. General - The Commission shall fix rates for electrical energy and natural gas service to the ultimate consumer without discrimination between consumers of same class, and no rate shall be charged or practice adopted which will grant a discriminatory rate, rebate or other special concession to any consumer served by the Hutchinson Utilities Commission. It is specifically understood that the City is a consumer within the meaning of this section and further it is specifically understood that the natural gas division is a consumer of the electric department within the meaning of this section. B. Electric Rates - The Commission shall fix such rates for electricity furnished to consumers as will secure revenues sufficient to pay all salaries and wages of all officers and employees in the electric department; to cover the cost of all material and supplies used in the operation of the plant; to cover the cost of all repairs; to cover all miscellaneous expenses; to pay all interest charges upon all indebtedness of the Commission created for the purpose of purchasing, improving or extending the electric system, to provide for a contribution to the City in lieu of taxes, and to provide a sinking fund sufficient for the purpose of paying off such indebtedness at maturity and establish restricted funds based on good business judgment. C. Natural Gas Rates - The Commission shall fix such rates for natural gas furnished to consumers as will secure revenues sufficient to pay all salaries and wages of all officers and employees in the natural gas division; to cover the cost of all repairs; to cover all miscellaneous expenses; to pay all interest charged upon all indebtedness of the Commission created for the purpose of purchasing, improving, or extending the natural gas system to provide for a contribution to the City in lieu of taxes, and to provide a sinking fund sufficient for the purpose of paying off such indebtedness at maturity and establish restricted funds based on good business judgment. D. The contribution to the City in lieu of taxes shall be an amount equal to 2.75 percent of the total operating revenue of the Hutchinson Utilities Commission as determined by the second preceding year' financial audit of the Hutchinson Utilities Commission. The contribution in lieu of taxes 10 shall be paid to the City each year in four quarterly installments. SECTION - 3 ELECTRIC RATES AND REGULATIONS The Commission shall adopt and amend, from time to time, rules and regulations pertaining to electric service to consumers and customer relations. SECTION - 4 NATURAL GAS RULES AND REGULATIONS The Commission shall adopt and amend, from time to time, rules and regulations pertaining to natural gas service to consumers and customer relations. SECTION - 5 POLICY AS TO EMPLOYEES The Commission shall adopt and amend, from time to time, rules and regulations in respect to labor and employment policy. In the selection of staff employees, information shall be submitted to the Commission prior to consideration for employment by the Commission. SECTION - 6 COOPERATION WITH CITY A. As an enterprise fund of the City of Hutchinson, it is important that the Hutchinson Utilities Commission work closely with the City in order to maximize resources and to minimize costs to taxnavers and rateoavers. In order to 11 accomplish this, the Commission shall employ methods to facilitate communication with the Hutchinson City Council and to the use of each entities' resources through methods which include, but are not limited to: 1. The attendance and participation of the Hutchinson City Administrator, or designee, at all Commission meetings. This is to be facilitated by inviting input of the City Administrator, or designee, on various topics, particularly those which impact the City and, in turn, obtaining information from the City Administrator, or designee, as to City activities that affect the Utilities. In addition, each Utilities meeting agenda shall contain a section entitled "Communication from the Citv Administrator" 2. Whenever possible, the General Manager shall meet with the City Administrator, or designee, to implement methods of sharing employees, equipment and other resources between the City and Utilities. This may be accomplished through a written agreement between the Utilities and the City, if necess 12 Section — 6 Cooperation with City. A. As an enterprise fund of the City of Hutchinson it is important that the Hutchinson Utilities Commission work closely with the City in order to maximize resources and to minimize costs to taxpayers and ratepayers. In order to accomplish this, the Commission shall employ methods to facilitate communication with the Hutchinson City Council and to the use of each entities' resources through methods which include, but are not limited to: 1. The attendance and participation of the Hutchinson City Administrator at all Commission meetings. This is to be facilitated by inviting input of the City Administrator on various topics particularly those which impact the City and, in turn, obtaining information from the City Administrator as to City activities that affect the Utilities. In addition, each Utilities meeting agenda shall contain a section entitled "Communication from the City Administrator ". 2. Whenever possible, the General Manager shall meet with the City Administrator to implement methods of sharing employees, equipment and other resources between the City and Utilities. This may be accomplished through a written agreement between the Utilities and the City, if necessary. Z _O U) a m O U W p H Z O _Z U H Z O F- CL O J H Z W D M r O N Z ° N + + O O Q 69 O ~w a> m \O J o o Q 00 Q o o ° I Q v> O Z O Z W O m 0 o0 � 00 LO J U Z 100-01 00 Co M 00 E9 69 6R Z O QH 0 0 o O o o c o 00 It �� Q O O O co 0) o00 000 000 6q V> O � w Q = C) O O 0 O N M O w ° ° O o w co ° rn 00 LO LO 69 P �- J (n Q W cl J Q N w o o o Q O O Q o o o LO O (D I- Z �Q O 69 O O Z Z O O 000 COO 000 6 W 69 6 9 Q!) 0 O 7 N E 0 m X r E co 3 E 0 y N a O U U 0 V (6 s - 0 °c 0 c n a�i c ai 0 E cu a m 2 O Q w a a w IL o LO o Lo ti N 0 0 N � t 0 0 v co I- o ° N + + O O 69 O ~w a> m \O J d r m C O L Un, LL 0� Q O� W d W O m U) W � C J U Z 100-01 Z x � C� \ Q � � � O U Cf) W � � D z O C/) Z_ 2 U � � 2 � � � Q m_ D � � W � � 2 O � � C) C%4 /w m e 0 0 CL E \ w E \ 2 2 w \ \ 0 / o C) / / \ \ 3 = c w \ < ƒ m m i \ < ƒ U0 m k \ e = 2 r \ \ § » 04 % / n ° / # o r @ / m » � � I= — \ $ I D � :E 0 E 7 a c / e % 0 § � R % E co § " � 2 ° 2 D § \ £ E E 7 0 CL ƒ % § E « @ \ 2 E w I $ o § m \ @ k a m e m w : o > { 0 § 0 7 < < / k w/ / f z 3 z 0 » » Z c o e 2 S / \ 2 C < z Cl) ƒ k C / = 0 ` 6 g >1 . 2 $ ° < < ƒ U) d ' S S / 0 z z 0 § D _ $ ® ® U) > » m 2 n 0 w z 0 Q » 0 L E \ \ \ \ : 0 to 7 § § < 2 C) w & / / 2 \ \ o \ c CD Cl) ~ LU=) \ _ / W z \ < < % co k E \ \ 0 � \ oW— / f \ z \ � I= — \ $ I D � :E 0 E 7 a c / e % 0 § � R % E co § " � 2 ° 2 D § E E E 7 0 CL ƒ % § E « @ \ 2 E w I $ o § m \ @ k a m e m w : o > { 0 W 0 J J I U N O N i i w N N Co O N N N N I- co r r O T- T- T- T- a-- O O x 0000000 O O 00 ❑C��C�oNMO N N N N N N N N N N N O� QI�OLO-0 NN �- F- V Q LL o LL LL 0 Z w a) a) 02 w r aao.aaaa N Qa 2 2 2 2 2 2 2 co co Lu 0 p 8 V C C C C C C C U U � f0 N N f0 fC C6 N a) a) C C m m m m m m in ❑ 0 V)0000 00 O 00 O M M Q0 U O CN 0 O 0 a 0 0 0 0 N 0 00 0 O 0 0 00 0 O O cm 00 400, F- M M to vlr Q Z 4 Cn V I,- O000)M M co CC) IV N N () : O v: ti P M O N DO Il O 00 O O MOOCAO�O 00 t N Il- N O O N CMS- 1-0ON�N O I-N O x'00 N 00 co U N O ti O N r �- M 69 64 r CO CO 64 iR V? M M W Ch 44 fA J W fA i� I,- OOOmM0 "r 0) It M 00 00 11l0 co IV 00 O 1n v: Co-TI�I�CA� ON C6 Z m 6 r m (D � 0 OD N fl- N 0) 1- 1� r- M — GOON I`OT— � F- 04 O IV �� 00 N co CO C r.1n,CD LO QN�LO- O �Efl iMR fiJr CAT Q y fA 40 CA W 2 5 O;rn Z N o m b 0 0 0 7 � te- C N N N W a) 0) U (D az 0 �- o 0 o c -a 4 W W W a M N 0 22 in Lo ca v.y J O�,O y N¢ m mnsa y�� �n a U 20 `L- cmom��oo `L a) 0 o00 U U» U o W" J F- F- F- F- O O 0 0 0 0 O O Q O 0 0 0 O � T- O 0 z Z Cl) 0 0 O Co w O Co Co N N N N F- o Z U Q a Q ul� O N C M N N O M � M 0o 0o N _ 00 END MM mlgr COOP- �M,M cM NCO OM U § 132.25 UTILITIES SERVICE INTERRUPTION. It shall be unlawful for any person who, with or without a permit or license from the city, to cause a line break or interruption in service of any gas, electric, water, sewer, telephone, telecommunications or other utility service line through excavation, or for severing or damaging an unmarked utility or negligently severing or damaging a marked utility. This section shall not apply to private landowners who cause service disruptions or line breaks which affect their property only. ('89 Code, § 10.47) (Ord. 02 -308, passed 5- 28 -02; Am. Ord. 03 -352, passed 8- 12 -03) Penalty, see § 10.99 Budget Payment Plan A budget payment plan is available for residential customers who have been at their present location for 12 months or greater. Procedures are in place for setting up and reviewing the budget payment plan calculation. Changes are made at the discretion of the Customer Service Department based on the customer's average bill from the previous 12 months. Customer will be notified of any changes. The budget payment plan and automatic bank payment plan can be done at the same time. EXEMPT 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 Director, Manager or Supervisor should discuss with the employee, the employee's progress with the Tmrpley e's DireGt0F OF Manager and bete e in becoming fully acquainted with the job and co- workers. The Gemmiooiep General Manager can terminate a probationary employee's employment without notice and without cause at any time during the probationary period. The General Manager may choose to extend an employee's probation period up to a maximum of three months. New full -time employees are required to sign the acknowledgement in Appendix B when they begin employment. NON - EXEMPT 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 Director, Manager or Supervisor should discuss with the employee, the employee's progress with employee's DireGtnr Or Manager and hoGnmo in becoming fully acquainted with the job and co- workers. The General Manager can terminate a probationary employee's employment without notice and without cause at any time during the probationary period. The General Manager may choose to extend an employee's probation period up to a maximum of three months. New full -time employees are required to sign the acknowledgement in Appendix B when they begin employment.