07-31-2013 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, July 31, 2013
Call to order — 3:00 p.m.
Vice President Johnson called the meeting to order. Members present: Vice President
Leon Johnson; Secretary Monty Morrow; Commissioner Anthony Hanson; General
Manager Michael Kumm. Members absent: President Bordson; Commissioner Lenz;
Attorney Marc Sebora.
1. Approve Minutes of: June 26, 2013 Regular and July 10, 2013 Special
Meetings
The minutes of the June 26, 2013 regular meeting and the July 10, 2013 special
meeting were reviewed. GM Kumm presented a correction to the `Call to Order'
time on the July 10, 2013 special meeting minutes to be 7:03 a.m. instead of 9:03
a.m. After discussion, a motion was made by Commissioner Hanson, seconded by
Secretary Morrow to approve the June 26, 2013 regular and July 10, 2013 special
meeting minutes, as amended. Motion was unanimously carried.
2. Approve Vice President Leon Johnson's Resignation
Vice President Johnson presented his resignation which will be effective
September 1, 2013. A motion was made by Secretary Morrow, seconded by
Commissioner Hanson to approve Vice President Johnson's resignation. Motion
was unanimously carried. (Resignation attached.)
3. Ratify Payment of Bills for June 2013
The June 2013 payables were discussed. A motion was made by Commissioner
Hanson, seconded by Secretary Morrow to ratify the payment of bills in the amount
of $5,283,859.26 (detailed listing in payables book). Motion was unanimously
carried.
4. Approve Financial Statements /Budget Year to Date
Jared Martig presented the June 2013 financial statements /budget year -to -date.
After discussion, a motion was made by Vice President Johnson, seconded by
Secretary Morrow to approve the financial statements /budget year -to -date. Motion
was unanimously carried.
5. Approve HUC New Commissioner Matrix
GM Kumm presented the final draft of the new commissioner matrix. Discussion
held regarding HUC's use of the matrix as a tool to assist in the selection process
of new commissioners. A motion was made by Vice President Johnson, seconded
by Commissioner Hanson to approve the new commissioner matrix to use as a tool
in the selection process. Motion was unanimously carried. (Matrix attached.)
6. Approve Delegation of Authority Policy
GM Kumm presented the Delegation of Authority policy which was revised from a
draft policy Attorney Sebora previously presented. After discussion, a motion was
1
made by Commissioner Hanson, seconded by Secretary Morrow to approve the
Delegation of Authority policy. Motion was unanimously carried. (Policy attached.)
7. Approve Assignment of New Commissioner Subcommittee
After discussion of suggested subcommittee members, a motion was made by
Secretary Morrow, seconded by Vice President Johnson to assign President
Bordson and Commissioner Hanson as members of the new commissioner
subcommittee. Motion was unanimously carried.
8. Approve Assignment of 3M Generation Subcommittee
After discussion of suggested subcommittee members, a motion was made by
Vice President Johnson, seconded by Secretary Morrow to assign Commissioner
Hanson and Secretary Morrow as members of the 3M generation subcommittee.
Motion was unanimously carried.
9. Review Policies and Requirements Booklet
GM Kumm presented the policies and requirements booklet, sections:
• Deposit Requirement — Residential
• Deposit Requirement — Commercial /Industrial
• Terminating Electric /Natural Gas Service by Customer
No changes recommended for sections: deposit requirements — residential and
terminating electric /natural gas service by customer.
After discussion regarding the changes to the deposit requirement -
commercial /industrial, the Board tabled agenda #9 until the August regular
commission meeting.
10. Approve Changes to Exempt and Non - Exempt Handbooks
GM Kumm presented changes to the exempt and non - exempt handbooks,
sections:
• Definitions
• Solicitation on Utility Premises
• Employee Gifts
• Flowers
The change to section: definitions was to add "adult child" to the definition of
Immediate Family, due to the change in law. The changes made to section:
solicitation on utility premises was for clarification as it is what HUC currently
practices. No recommended changes to section: employee gifts. The changes
made to section: flowers were for clean -up purposes only.
A motion was made by Commissioner Hanson, seconded by Secretary Morrow to
approve the changes to the exempt and non - exempt handbooks. Motion was
unanimously carried. (Changes attached.)
P�
11. Approve Requisition #5482 — Replacement of Boiler Tubes at Plant 2
Steve Lancaster presented requisition #5482 — replacement of boiler tubes at plant
2. This project was not budgeted for 2013. The boiler deteriorated so needs to be
replaced. After discussion, a motion was made by Vice President Johnson,
seconded by Secretary Morrow to approve requisition #5482 — replacement of
boiler tubes at plant 2 by Lund Machine Works. Motion was unanimously carried.
(Requisition attached.)
12. Discussion on Purchasing Strategies for Unit 6
This agenda item was tabled until the August regular commission meeting due to
Attorney Sebora's absence.
13. Communication from the City Administrator
City Administrator Carter was absent.
GM Kumm mentioned City Administrator Carter emailed him a resolution in
regards to the PILOT which will be distributed to the PILOT committee for their
review. The resolution will be presented at the next regular commission meeting for
approval.
14. Division Reports
Finance — Jared Martig
Nothing to report
Natural Gas — John Webster
• Purchased natural gas for November 2013 through October 2022 at a fixed
price of $4.96.
• Update on City of Brownton project —
o Attending construction meetings
• As of today, all 2 inch pipe will be installed
• Met with Sue Winter and Brownton help desk clerk to assist with billing
and customer service process
• Week of August 12 is expected service -to- customer date
Business — Jan Sifferath
• New Infinity.Link test system will be starting Monday, August 5.
Electric — Steve Lancaster
• The title 5 air permit for plant 1 is up for renewal.
• MPCA visited plant 1 today and it went well.
15. Legal Update
Attorney Sebora was absent.
Unfinished Business
• Discuss Separate Business Unit for Wholesale Business
Nothing to report
3
• Discuss Pre -Pay for Natural Gas
Nothing to report
• PILOT Committee Recommendation
Nothing to report
New Business
GM Kumm reported he and John Webster met with Great Minnesota Gas last
week regarding a potential capacity sale.
GM Kumm also reported there will be two electric distribution projects taking place
in the next year; Energy Park and Harmony River, at a cost of approximately
$150,000. HUC will flip other projects to cover this cost.
There being no further business, a motion was made by Commissioner Hanson,
seconded by Secretary Morrow to adjourn the meeting at 3:44 p.m. Motion was
unanimously carried.
Monty Morrow, Secretary
ATTEST:
Leon Johns , Vice President
n
Kim Koski
From: Dwight Bordson [Dwight.Bordson @hti.htch.com]
Sent: Tuesday, July 09, 2013 10:56 AM
To: Kim Koski
Subject: Fw: Resignation
Please put this on the agenda for next month
Thank you
Dwight Bordson
Hutchinson Technology
Corporate Director of Material's & Facilities
Direct # 320 - 587 -1453
Mobile # 320 - 223 -1997
- - - -- Forwarded by Dwight Bordson /ESBU /HUT /HTI on 07/09/2013 10:56 AM - - - --
From Igiohnson(d.)mmm.com
To: Dwight Bordson <Dwight. Bordson(a)hti. htch.com>
Cc: Anthony Hanson <anthonyh(c)cbhutch.com >, "Craig Lenz (Clenz(Wagsystem son line. com)" <Clenz(cilagsystemsonline.com >, Marc Sebora
< msebora(a�ci.hutchinson.mn.us >, Monty Morrow <montvmorrow(@nu- telecom.net>
Date: 07/09/2013 10:53 AM
Subject Resignation
Good morning Dwight,
This e -mail is my formal resignation from the duties of Commissioner for the Hutchinson Utilities Commission effective
September 1st, 2013. By resigning I hope to mitigate any conflict of interest, or potential conflict of interest that could
arise between myself as an employee of 3M company and as Commissioner with HUC with the potential generation of
electricity by 3M company.for internal consumption of electricity.
It has been a pleasure to be part of such a prestigious board serving the community of Hutchinson, MN.
Thank you!
Leon Johnson
C_71
Leon G. Johnson I Plana Engineering Manager
3M Hutchinson Manufacturing Site
3M Hutchinson, 915 Adams St. SE I Hutc;lirlsorl, MN 55350
?�,, i nqn j 9 080 F 1 rmne:
IgjohnsonCcbmmm.com www.3M.com
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Adopted July 31, 2013
Delegation of Authority
From time to time the General Manager will be absent.
When the situation warrants, every effort to contact the General Manager will be
made. If contacting the General Manager is unsuccessful and the situation still
exists, the General Manager's full authority will be given to the Directors of
Electric Division and /or Natural Gas Division.
If contacting the Directors is unsuccessful and the situation still exists the General
Manager's full authority is given to the Department Managers; Transmission and
Distribution, Engineering Services, Production, Financial, and Customer
Service /HR. Once Authority has been delegated, the General Manager will be
informed of the decisions the respective managers made.
EXEMPT
DEFINITIONS
In this Handbook, the following terms shall have the meanings as listed below:
"Commission" means the Hutchinson Utilities Commission.
"Essential employees" means power plant operators, system controllers, line workers, and natural gas
service workers.
"Exempt employees" means executive, professional and administrative employees as those terms are
defined in the Fair Labor Standards Act ( "FLSA ") and who are not subject to the minimum wage and
overtime provisions of the FLSA.
"General Manager" means the Chief Executive of Hutchinson Utilities who is appointed by the
Commission.
"Immediate family" means spouse or significant other, parent, stepparent, guardian, child, stepchild,
adult child, sibling, grandparent, grandchild, and any in -law.
"Non- exempt employees" are employees who are generally paid hourly and are subject to the minimum
wage and overtime provisions of the FLSA.
"Regular full -time employee" means an employee who has been appointed to an authorized, budgeted
position who is not temporary or probationary and who is regularly scheduled to work 40 hours during a
work week. Generally, regular full -time employees are eligible for Utility benefit programs subject to the
terms, conditions and limitations of each benefit program.
"Seniority" means length of consecutive employment as a regular full -time employee with Hutchinson
Utilities.
"Staff personnel" means Director of Electric Division, Director of Natural Gas Division, Customer /Human
Relations Manager, Manager of Electric Production, Manager of Electric Transmission /Distribution,
Manager of Engineering Services, Finance Manager, Accountant, Administrative Coordinator, Purchasing
Agent, Inventory Agent, Computer Systems Analyst, Energy Conservation Administrator, and Accounts
Supervisor.
"Temporary employee" means an employee who may work up to 40 hours per week but for a maximum
of 24 weeks per year, even if not consecutive weeks. Temporary positions are eligible for legally
mandated benefits such as Social Security but are ineligible for Utility benefit programs.
"Utility" and "Utilities" means Hutchinson Utilities.
"Working days" means Monday through Friday.
NON- EXEMPT
DEFINITIONS
In this Handbook, the following terms shall have the meanings as listed below:
"Commission" means the Hutchinson Utilities Commission.
"Essential employees" means power plant operators, system controllers, line workers, and natural gas
service workers.
"Exempt employees" means executive, professional and administrative employees as those terms are
defined in the Fair Labor Standards Act ( "FLSA ") and who are not subject to the minimum wage and
overtime provisions of the FLSA.
"General Manager" means the Chief Executive of Hutchinson Utilities who is appointed by the
Commission.
"Immediate family" means spouse or significant other, parent, stepparent, guardian, child, stepchild,
adult child, sibling, grandparent, grandchild, and any in -law.
"Non- exempt employees" are employees who are generally paid hourly and are subject to the minimum
wage and overtime provisions of the FLSA.
"Regular full -time employee" means an employee who has been appointed to an authorized, budgeted
position who is not temporary or probationary and who is regularly scheduled to work 40 hours during a
work week. Generally, regular full -time employees are eligible for Utility benefit programs subject to the
terms, conditions and limitations of each benefit program.
"Seniority" means length of consecutive employment as a regular full -time employee with Hutchinson
Utilities.
"Staff personnel" means Director of Electric Division, Director of Natural Gas Division, Customer /Human
Relations Manager, Manager of Electric Production, Manager of Electric Distribution, Manager of
Technical Services, Finance Manager, Accountant, Administrative Coordinator, Purchasing Agent,
Inventory Agent, Computer Systems Analyst, Energy Conservation Administrator, and Accounts
Supervisor.
"Temporary employee" means an employee who may work up to 40 hours per week but for a maximum
of 24 weeks per year, even if not consecutive weeks. Temporary positions are eligible for legally
mandated benefits such as Social Security but are ineligible for Utility benefit programs.
"Utility" and "Utilities" means Hutchinson Utilities
"Working days" means Monday through Friday.
EXEMPT
SOLICITATION ON UTILITY PREMISES
Salespersons offering merchandise not related to —HUC business are prohibited from soliciting
during normal W0Fl(i ►g— business hours. Employees are discouraged from soliciting other employees.
Brochures and /or pamphlets are allowed to be put out in the breakroom for voluntary participation
. Employees shall
not provide another employee's contact information to a salesperson without the employee's consent.
FLOWERS
In the event of the death of a full -time or part -time employee, employee's spouse, mother, father, child
of an employee, flowers /plant will be sent at -HUC expense without delay to the appropriate
funeral home.
Information needed:
Funeral Home
Address
Date to Send Flowers
Similar consideration may be given, at the discretion of Directors, for retirees, consultants, Commission
members or others who provide significant service to the Util+tiesHUC.
NON - EXEMPT
SOLICITATION ON UTILITY PREMISES
Salespersons offering merchandise not related to —HUC business are prohibited from soliciting
during normal business hours. Employees are discouraged from soliciting other employees_
Brochures and /or pamphlets are allowed to be put out in the breakroom for voluntary participation
and aeeeptance of an employee's 94er 05; not ffl.andateFy f9F maintaining . Employees shall
not provide another employee's contact information to a salesperson without the employee's consent.
FLOWERS
In the event of the death of a full -time or part -time employee, employee's spouse, mother, father, child
of an employee, flowers /plant will be sent at -HUC expense without delay to the appropriate
funeral home.
Information needed:
Funeral Home
Address
Date to Send Flowers
Similar consideration may be given, at the discretion of Directors, for retirees, consultants, Commission
members or others who provide significant service to Nhe lftif+t+esHUC.
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