03-06-1986 HUCM/ D -}�-
Special Meeting
March 6, 1986 7 O'clock
The meeting was called to order by Commissioner Daggett at 7 A.M.
Present at meeting were Commissioners Daggett, Beatty, and Lyke.
Manager Alexander was also present.
Commissioner Daggett inquired as to 'the status of the decision to
go to the City Council and request a change in the fuel adjustment
clause. Mgr. Alexander stated the Commission had authorized going
to the City Council at the last regular meeting of the Hutchinson
Utilities Commission.
Commissioner Daggett tnen initiated discussion concerning the gas
budget expressing concern that the profit margin is projected to
fall below our 5% target. Commissioner Daggett questioned why there
was a budget increase in the salaries in the Gas Division in view of
the fact that Orville Kuixen's salary is eliminated. Mar. Alexander
suggested looking at the budget work sheets to see if there is an
error. Mgr. Alexander further St atFC that. tt 7 e $24,000. L L it
em
included in account 2 -101 -395 should not have been included in this
budyet. The elimination of this item would ilm rove the profit
picture sign! _ficaritV. _
A discussion of the current rrar:et price of gas followed. Mgr.
Alexander was directed Lo Uriny liiiuiir tiori to the Coriraission
regarding lower priced gas. Mgr. Alexander mentioned that we have a
lack of fiexability in buyinq other qas due to our contract with
Noithern Natural Gas. Cortwissioner Daggett directed Mgr. Alexander to
go to northern Natural Gas and ask for the 15% reduction allowed in our
contract due to the lose. of 31 as a gas (ustc;m %r. Mgr. Alexander said
he would get a letter from M.J. Sams, of the 3M Co., saying that 3M
won't be buying gas.
Tile proposed contract with the United Power Association concerning
the Nelson River Project was discussed. Mgr. Alexander said that Mr.
Tony Rude, of the United Power Association, asked why the Hutchinson
Utilities had riot electea to join t1ic Central Power Agency. Mgr.
Ale:,ander directed Mr'. Dori Swanson, of Associated Consultants, to
contact Mr. Rude and qet an explanation of Mr. Rude's position
regarding the membership of the Hutchinson Utilities Commission in
the Agency. Following that contact Mr. Swanson is to write a letter
to the Hutchinson Utilities Commission outlining the advantages, to
both the Utility and the United Power Association, gained by membership
of the Utility in the Agency.
Mgr. Alexander said lie would invite Mr. Rude to a meeting of the
Commission so that Mr. Rude could be directly questioned.
In another matter Mgr. Alexander suggested investigating cc- generation
with 3M. Mgr. Alexander considers co- generation an advantage because
he feels the Utility could sell more gas to 3M.
Next a discussion of current hiring practices in place at the
Hutchinson Utilities ensued. Commissioner Lyke presented the
following resolution for consideration by the Commission:
Every appointment to the Hutchinson Electric and Gas Utility
shall be made by appointing authority on the basis of merit
and fitness for the position. When required by law or by the
Utility or Utility Commission, merit and fitness shall be
ascertained by written, oral, or other examinations designed
to evaluate the ability of the candidate to discharge the
position for which the examination is held. No member of a
manager's or department head's immediate family shall be
appointed as a subordinate within the Utility. In no case
shall an immediate relative of an incumbent Utility Commissioner
be appointed to the service of the Utility.
Discussion of the context of the proposed policy and how it might
relate to the hiring of Mgr. Alexander's son, Mr. Todd Alexander,
followed. The question was raised as to whether or not the lineman
and gas construction position had been posted as specified by our
union contract. Mgr. Alexander said that the jobs had not been
posted. Mgr. Alexander said that Mr. Wally Hombach would not release
either of the two ndividlzals who would be most gtla].i_fied to fill the
positions. Also Mgr. Alexander said that Mr. Hcmbach would not allow
the operators to leave. Mgr. Alexander further stated that Mr. Hombach
would not release any diesel mechanics, in addition to which, Mgr.
Alexander felt that the operators and mechanics would not request the
positions because they are lower paying.
Mgr. Alexander said that he had talked to Randy Blake and "the welder"
and neither was interested in the positions. Consequently, Mgr.
Alexander felt there wasn't any need to post the positions because all
interested parties had been contacted..
Mgr. Alexander went on to say that Mr. Wentworth had been in contact
with Jackson Area Vocational Technical Institute, and that J.A.V.T.I.
didn't have anyone that they would recommend for the lineman position.
Commissioner Daggett asked what Mr. Todd Alexander's title would be as
an employee of the Hutchinson Utilities. Mgr. Alexander said that
Mr. Todd Alexander would be a laborer starting at $8.53 per hour and
the groundman would start at 85% of a lineman's rate.
Commissioner Daggett said he would like a legal interpretation of the
City Ordinance before making a decision concerning hiring policy.
Commissioner Daggett asked what action the Commission should take at
this time. Commissioner Beatty stated that he wished to talk to Hazel
Sitz and Counsel Richard Peterson before making a decision.
Commissioner Lyke stated that the hiring practices in use at the
Hutchinson Utilities can lead, and may have led to abuse.
A Special Meeting was set for March 11, 1986 at 11 o'clock A.M. in
the Commission Room at the Hutchinson Utilities to further consider
the hiring practices of the Utility before placing the groundman
and the gas construction crewman on the payroll.
The meeting was adjourned at 8:45 a.m.
ter_
ATTEST ;
E. Daggett, P e ident
I
/ D 7 --} ZcL&