01-29-2014 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, January 29, 2014
Call to order — 3:00 p.m.
President Bordson called the meeting to order. Members present: President Dwight
Bordson; Vice President Anthony Hanson; Secretary Monty Morrow; Commissioner
Mark Girard; Commissioner Donna Luhring; Attorney Marc Sebora; Interim General
Manager John Webster.
1. Commission Reorganization
President Bordson called for the annual Commission reorganization.
A motion was made by Secretary Morrow, seconded by Commissioner Girard to
elect Anthony Hanson to the position of president. Motion was unanimously
carried.
A motion was made by Commissioner Girard, seconded by Vice President Hanson
to elect Monty Morrow to the position of vice president. Motion was unanimously
carried.
A motion was made by Vice President Hanson, seconded by Secretary Morrow to
appoint Mark Girard as secretary. Motion was unanimously carried.
A motion was made by President Bordson, seconded by Commissioner Luhring to
appoint Marc Sebora as legal counsel. Motion was unanimously carried.
A motion was made by President Bordson, seconded by Vice President Hanson to
appoint Kim Koski as recording secretary. Motion was unanimously carried.
A motion was made by Commissioner Luhring, seconded by Secretary Morrow, to
designate Citizens Bank & Trust as depository for utility funds. Motion was
unanimously carried. Vice President Hanson and Commissioner Girard abstained
from voting due to a conflict of interest.
A motion was made by Commissioner Luhring, seconded by Secretary Morrow to
designate Wells Fargo as depository for utility funds. Motion was unanimously
carried. Vice President Hanson and Commissioner Girard abstained from voting
due to a conflict of interest.
A motion was made by Commissioner Luhring, seconded by Secretary Morrow to
designate Home State Bank as depository for utility funds. Motion was
unanimously carried. Vice President Hanson and Commissioner Girard abstained
from voting due to a conflict of interest.
1
2. Approve Minutes of January 2, 2014 (December Regular Meeting)
The minutes of the January 2, 2014 regular meeting were reviewed. A motion was
made by Secretary Morrow, seconded by Vice President Hanson to approve the
minutes. Motion was unanimously carried.
3. Ratify Payment of Bills for December 2013
The December 2013 payables were discussed. After discussion, a motion was
made by Vice President Hanson, seconded by Commissioner Girard to ratify the
payment of bills in the amount of $4,644,565.02. (detailed listing in payables book).
Motion was unanimously carried.
4. Approve Financial Statements /Budget Year to Date
Jared Martig presented the December 2013 financial statements /budget year -to-
date.
Jared also discussed the results of the auditor's review of the MRES Big Stone II
project and the early final payment in June 2013 of amount owed for the project.
The auditors are requesting that HUC develop an amortization plan for the
payments. The Board discussed options on how to proceed with an amortization
schedule.
After discussion, a motion was made by Vice President Hanson, seconded by
Commissioner Girard to approve the financial statements /budget year -to -date.
Motion was unanimously carried.
5. Review Policies and Requirements Booklet
Interim GM Webster presented the policies and requirements booklet, sections:
• Minnesota Government Data Practices Act & Public Records Request
• Electric Service Requirements & Charges
• Temporary Service - Electric
No changes were recommended.
6. Approve Changes to Exempt and Non - Exempt Handbooks
Interim GM Webster presented changes to the exempt and non - exempt
handbooks, sections:
• Travel Expenses
• Worker's Compensation
• Vacation
• Holidays
The recommended changes were primarily for clean -up
In the Travel Expenses section, the Board requested removing the last paragraph
and bullet points in "Overnight Stays, Meals and Entertainment Expenses" on page
2 (exempt only) so the policy applies equally to all exempt employee positions.
After discussion, a motion was made by Commissioner Luhring, seconded by
Secretary Morrow to approve the changes to section Travel Expenses to include
2
the exclusion of the last paragraph and bullet points in "Overnight Stays, Meals
and Entertainment Expenses" on page 2 (exempt only). Motion was unanimously
carried. (Changes attached.)
A motion was made by Vice President Hanson, seconded by Secretary Morrow to
approve the changes to section Worker's Compensation. Motion was unanimously
carried. (Changes attached.)
In the Vacation section, discussion was held regarding reviewing the vacation
hourly increments when the Union contract is open again in three years. A motion
was made by Vice President Hanson, seconded by Commissioner Luhring to
approve the changes to section Vacation. Motion was unanimously carried.
(Changes attached.)
In the Holidays section, the Board requested changing the word "will" to "shall" in
the non - exempt handbook to be consistent with the exempt handbook. After
discussion, a motion was made by Secretary Morrow, seconded by Vice President
Hanson to approve the changes to section Holidays. Motion was unanimously
carried. (Changes attached.)
7. Review Service Beyond City Limits of Hutchinson
Interim GM Webster presented the Service Beyond City Limits of Hutchinson
policy. No changes were recommended.
8. Approve Changes to Parallel Generation Policy (Tabled at the January 2,
2014 Regular Meeting)
Interim GM Webster presented the Parallel Generation Policy which was tabled in
the January 2, 2014 regular meeting. Attorney Sebora is assisting with working on
the insurance and staff is working on further changes to the policy. Policy tabled
until the February regular commission meeting.
9. Review CIP Rebate Level of Authority
Interim GM Webster presented the CIP rebate level of authority. This is part of
HUC's policy review process. No changes were recommended.
10. Discuss Industrial CIP Rebate
Nick Nelson presented two alternatives to remedy the 2013 Industrial CIP refund
issue. These recommendations were formed after receiving information from
MRES on qualifying projects that 3M had completed in 2013. The two alternatives
recommended are:
1. $15,000 to HTI (first come, first served) and the remaining $25,000 to 3M.
HUC had budgeted $40,000 for the 2013 industrial rebates.
2. $15,000 to HTI and up to $80,000 to 3M for projects completed in 2013. HUC
has justification for the larger amount regarding the 3M projects (this option is
$55,000 over HUC's 2013 budget of $40,000).
The Board requested it be clear that going over budget each year is not an option.
3
After discussion, a motion was made by Commissioner Girard, seconded by
Secretary Morrow to approve option #2, $15,000 to HTI and up to $80,000 to 3M
for projects completed in 2013. Motion was unanimously carried. President
Bordson abstained due to conflict of interest. (Handout attached.)
11. Discuss 3M Update: Anthony Hanson and Monty Morrow
Secretary Morrow reported they met with Dave Berg last week regarding the
industrial rate analysis. Dave Berg's analysis showed that 3M doing their own
generation has too great of an impact on HUC. HUC's goal is to retain 3M as a
demand customer. Plans are to meet with 3M again in a couple months.
12. Discuss Delegation of Authority
Discussion held regarding any need to modify this policy for Interim General
Manager. Attorney Sebora reported it does not need modification.
13. Discuss HUC Annual Breakfast Meeting Scheduled for Wednesday, April 9,
2014 at 7:00 a.m.
Discussion held regarding a change in format this year by bringing a speaker in
and having a roundtable discussion style meeting.
A motion was made by Vice President Hanson, seconded by Commissioner Girard
to approve HUC Annual Breakfast Meeting scheduled for Wednesday, April 9,
2014 at 7:00 a.m., as an open meeting. Motion was unanimously carried.
14. Approve Requisition #5680 for Purchase of Vehicles (Tabled at the
January 2, 2014 Regular Meeting)
Steve Lancaster presented requisition #5680 for purchase of vehicles in the
electric department. This is a State bid and is a 2014 budgeted item. A motion was
made by Vice President Hanson, seconded by Commissioner Luhring to approve
requisition #5680 for purchase of vehicles for $52,123.19 from Nelson GMC.
Motion was unanimously carried. (Requisition attached.)
15. Approve Requisition #5714 for Purchase of a Vehicle for Natural Gas
Department
Interim GM Webster presented requisition #5714 to replace his vehicle in the
natural gas department. Received three bids: Jay Malone Motors, Nelson GMC
(State bid) and Litchfield Chrysler Center. Interim GM Webster recommended
purchasing from Jay Malone Motors as they are local. A motion was made by
Secretary Morrow, seconded by Vice President Hanson to approve requisition
#5714 for purchase of a vehicle for Natural Gas Department for $30,400.59 from
Jay Malone Motors. Motion was unanimously carried. (Requisition attached.)
16. Communication from the City Administrator
City Administrator Carter was absent.
17. Division Reports
Natural Gas — John Webster
4
• Annual residential natural gas rate comparison handed out. RUC's rates have
not changed since 2006. HUC's goal is to keep rates flat in the natural gas
division.
• HUC has nine contracts which were pre - purchased three years ago. Natural
gas market has gone upside down. Because HUC has a pipeline this doesn't
affect HUC operationally or financially. We were able to prevent the high cost of
$53 for natural gas as system control lowered HUC's nomination as much as
possible. The system control personnel has done a great job keeping the
nominations going.
• Met with Jan Sifferath and Rich Westlund on Monday regarding insurance.
Setting up a meeting with the Union to get the conversation started on future
insurance rates. President Bordson requested to keep the employees apprised
of what's going on.
• There is renewed interested in natural gas for those customers who currently
have propane due to high prices of propane.
Finance — Jared Martig
• Working with the auditors.
Electric — Steve Lancaster
• Handed out electric rate comparisons for 2012 -2013 for all rate classes. HUC
has continued to have stable rates.
• Maintenance Crew Chief position opened due to retirement. No one has
responded to the internal posting yet.
• General Electric at HUC to do training on the new control system and
troubleshooting an issue with it.
• Steve reported the Wartsila engine is working well for HUC.
18. Legal Update
Nothing to report
Unfinished Business
• Discuss Separate Business Unit for Wholesale Business
o In another month, Jared will have information on this.
• Discuss Pre -Pay for Natural Gas
o Interim GM Webster mentioned prepays are put on hold until natural gas
prices change.
• Discuss Joint Meeting with City
o President Bordson is waiting for a response from Mayor Cook on
coordinating a date for the joint meeting.
New Business
• John Webster presented the Pay Equity Report for Board approval. This report
is required by the State to be performed once every three years. HUC is
certified and in good standing. Motion was made by Vice President Hanson,
seconded by Commissioner Girard to approve the Pay Equity Report. Motion
unanimously carried. (Pay Equity Report attached.)
5
• Commissioner Luhring referred to an email she received regarding the point
grade conversion for HUC salaries. She questioned whether there needs to be
a subcommittee to review the policies and procedures for the compensation
plan. Attorney Sebora stated the HUC bylaws state all salaries of employees
need to be approved by the Board.
President Bordson requested a market comparison be considered. Interim GM
Webster reported he met with Jan Sifferath and Wayne Brede last week
regarding an exempt employee market comparison. Attorney Sebora had a
conference call with MMUA today who is receiving a salary survey from
municipal utilities to go into the mix of salaries. Jared Martig stated he has the
MMUA study and will email it to the Board.
Further discussion was held regarding creating a subcommittee to review the
Compensation Plan along with reviewing the benchmark market studies HUC is
to receive. This committee would then make salary range recommendations. A
motion was made by President Bordson, seconded by Secretary Morrow to
appoint Commissioner Luhring and Commissioner Girard to the compensation
subcommittee. Motion unanimously carried.
• Attorney Sebora requested the Board approve a pay range to include in the
hiring process of a new HUC general manager. After discussion, a motion was
made by Vice President Hanson, seconded by Commissioner Girard to approve
a salary range of $98,000 to $162,245 (Governor's Salary Cap for 2014).
Motion was unanimously carried.
• Interim GM Webster thanked all utility employees who have worked so hard this
January to keep utilities running in Hutchinson and Brownton during bad
weather conditions. President Bordson suggested HUC provide a recognition
gathering for all employees and let the Board know the date.
There being no further business, a motion was made by Vice President Hanson,
seconded by Commissioner Luhring to adjourn the meeting at 4:46 p.m. Motion was
unanimously carried.
Mark Girard, Secretary
ATTEST: Oaf�
Anthony Hans n, Preside t
R
EXEMPT
Travel Expenses
Business Related Vehicle Operation
Travel within the State w44-shall be by Utility -HUC vehicle if possible. The Fines ShaI
If a y -HUC vehicle is not available for in -State travel, or is not practical to use, then an
employee may seek approval from Director or Manager to use a personal vehicle for
transportation. The following rules shall apply:
• The employee w4 —shall be reimbursed for mileage at the current IRS mileage
reimbursement rate.
• T"T„t- UtilityHUC is not liable for damage to personally owned vehicles used for U#4ty
HUC business.
• The k444-yHUC may request proof of insurance from employees who use personally
owned vehicles on y -HUC business.
• Travel to and from events should be by the most direct route possible.
• Employees are expected to return in a timely manner.
Travel outside of the State must be approved by the employee's Director or Manager. If it is
appropriate to drive, the employee shall follow the same rules as travel within the State.
Whether a y -HUC vehicle is used or a personal vehicle is used, the employee is responsible
for any traffic or parking citations the employee receives while operating a--such vehicle on
Utility-ILUC business.
Employees who drive a HUC may- vehicle home may use the vehicle only for 4t&y -HUC
business purposes.
Employees who are members of the Hutchinson Fire Department or Rescue Squad may use a
Utility HUC vehicle to travel to the fire station to respond to a call when the firefighter or rescue
squad member is on the job with the U#4t-ytLUC at the time of the call. If the firefighter or
rescue squad member is at the -UtilityHUC r^ ^teF eemp they must use a personal vehicle to
respond to the call.
Air Travel and Rental Vehicles
It is recognized that air travel may be a necessary part of conducting business for tie
yHUC. In the circumstances of air travel, the following rules shall apply:
• Commercial carriers shall be used.
• Tickets should be at "standard" or "coach" class.
• Travel to and from the airports shall follow the Business Related Vehicle Operation
section.
• Travel outside of the State must be approved by the employee's Director or Manager.
• Only employee's air travel expenses wiN -shall be prepaid, charged, or reimbursed at
cost.
Rental vehicles may be used when traveling outside of the State. Reservations of a rental
vehicle shall be made at the same time air travel is arranged. Renting a vehicle must be
approved by the employee's Director or Manager.
Overnight Stays, Meals and Entertainment Expenses
Hotel reservations w4l -shall be made prior to the employee leaving for out of town travel. The
following items shall apply to overnight stays:
• Hotel accommodations for the employee must be approved by the employee's Director
or Manager.
• In the event the employee is traveling on Utility business and experiences
inclement weather, to the extent that it is not safe to travel, or the employee is not able
to travel due to some circumstance that is beyond their control, then no prior approval
for hotel accommodations are necessary.
• Hotel rooms at convention or seminar sites are approved accommodations.
• Reimbursement is limited to employees and business related guests, and must be
directly related to business.
The following shall apply to expenses associated with meals:
• Meals w4l- -shall be limited to a maximum of $50 per day, including meal tips. The $50
per day is a maximum and not an allowance.
• Meal reimbursement is limited to employees.
• Expenses associated with alcoholic beverages w&shall not be reimbursed.
, - N-
Expense Report
An expense report shall be filled out for all reimbursement requests for purchases using
personal funds. Unsupported expenses using personal funds w41 -shall not be reimbursed by
HUC.
An expense report shall also be filled out for all company eF^4�4t rave I purchases.
Unsupported expenses on an HUC credit card shall be reimbursed to HUC by the employee.
The expense report must state the type of expense (meal, travel, hotel, etc.), the date and the
business purpose. Alcohol is not a reimbursable expense. It is the employee's responsibility to
obtain an itemized receipt. The expense report shall be approved by your Director, Manager, or
Supervisor before submitting to the Financial Manager.
Worker's Compensation
An employee who is injured on the job or becomes ill due to job - related reasons is eligible for
worker's compensation benefits. The ',�, 'fsHUC's worker's compensation insurance provider
w4�shall pay the employee approximately 2/3 of the weekly gross wage or salary lost due to
injury or illness and the- Ut+44yHUC w l�shall pay the additional 1/3 of the weekly gross wage for
up to 120 work days. Thereafter, the employee may use accrued sick leave, vacation leave, or
compensatory time to pay the additional 1/3 lost wage or salary. PERA and FICA are not
deducted from the worker's compensation portion of the paycheck.
SECTION 5 - EMPLOYEE BENEFITS
Vacation
Exempt employees shall accrue paid vacation on the employment anniversary date
according to the following schedule:
Number of Years
Employed
Vacation
20 hours
1
40 hours
2
80 hours
7
120 hours
11
128 hours
12
136 hours
13
144 hours
14
152 hours
15
160 hours
16
168 hours
17
176 hours
18
184 hours
19
192 hours
20
200 hours
Vacation may be used after completion of the probationary period. Employees must receive
prior approval of their vacation requests from their Director, Manager or Supervisor.
A vacation request for more than one day must be submitted in person at least two workdays in
advance. (For example, if an employee is scheduled to work Wednesday, Thursday, Monday
and the employee wants to take Monday afternoon as vacation, the employee must submit a
request in person by Wednesday afternoon.)
An employee may carry over up to a maximum of one time their annual accrual of vacation into
the next vacation year. Vacation year is defined as service anniversary to service anniversary.
Each permanent full -time employee must use at least 40 hours of vacation leave each year.
New employees who only receive 40 hours of vacation per year must use at least 20 hours of
vacation leave each year.
Employees who are on vacation and experience a disabling accident or illness may use sick
leave instead of vacation upon providing their Director, Manager or Supervisor appropriate
proof of the accident or illness.
Holidays
Employees are eligible for holiday pay effective immediately upon hire. '
The ',,,�- �sHLIC Wi4
shall observe the following days as holidays:
• New Year's Day
• Martin Luther King Day
• President's Day
• Memorial Day
• Fourth of July
• Labor Day
• Veteran's Day
• Thanksgiving Day
• Christmas Day
If the holiday falls on a Sunday, the following Monday shall be the holiday. If the holiday falls on
a Saturday, the preceding Friday shall be the holiday.
If Christmas falls on a Tuesday, Wednesday, Thursday or Friday, then the preceding day shall be
a Christmas Eve Day holiday. Additionally, there shall be two (2) floating holidays determined by
mutual agreement between the employee and Director, Manager or Supervisor. If Christmas
falls on a Saturday, Sunday, or Monday, there shall be no Christmas Eve Day holiday but there
shall be three (3) floating holidays determined by mutual agreement between the employee
and Director, Manager or Supervisor. Floating holidays must be used by the end of each
calendar year.
Employees w&shall be paid eight (8) hours straight time for each of the holidays.
Temporary employees who work on a holiday w44l -shall be paid at the employee's regular base
pay rate and w41.4-shall not receive holiday pay for hours not worked.
NON - EXEMPT
Travel Expenses
Business Related Vehicle Operation
Travel within the State w4l_-shall be by y --HUC vehicle if possible. T"^ f^fle-VARg Fules sha!
apply`
If a -HUC vehicle is not available for in -State travel, or is not practical to use, then an
employee may seek approval from Director or Manager to use a personal vehicle for
transportation. The following rules shall apply:
• The employee will be reimbursed for mileage at the current IRS mileage reimbursement
rate.
• The „HUC is not liable for damage to personally owned vehicles used for Ut4ity
HUC business.
• The " 4tyt UC may request proof of insurance from employees who use personally
owned vehicles on Utility HUC business.
• Travel to and from events should be by the most direct route possible.
• Employees are expected to return in a timely manner.
Travel outside of the State must be approved by the employee's Director or Manager. If it is
appropriate to drive, the employee shall follow the same rules as travel within the State.
Whether a -y-HUC vehicle is used or a personal vehicle is used, the employee is responsible
for any traffic or parking citations the employee receives while operating a--such vehicle on
Utility-IIUC business.
Employees who drive a HUC U#4ty- vehicle home may use the vehicle only for y -HUC
business purposes.
Employees who are members of the Hutchinson Fire Department or Rescue Squad may use a
Utility HUC vehicle to travel to the fire station to respond to a call when the firefighter or rescue
squad member is on the job with the HUC at the time of the call. If the firefighter or
rescue squad member is at the yHUC eenteF eemp they must use a personal vehicle to
respond to the call.
Air Travel and Rental Vehicles
It is recognized that air travel may be a necessary part of conducting business for t#e
Ut4ityHUC. In the circumstances of air travel, the following rules shall apply:
• Commercial carriers shall be used.
• Tickets should be at "standard" or "coach" class.
• Travel to and from the airports shall follow the Business Related Vehicle Operation
section.
• Travel outside of the State must be approved by the employee's Director or Manager.
• Only employee's air travel expenses will be prepaid, charged, or reimbursed at cost.
Rental vehicles may be used when traveling outside of the State. Reservations of a rental
vehicle shall be made at the same time air travel is arranged. Renting a vehicle must be
approved by the employee's Director or Manager.
Overnight Stays and Meals
Hotel reservations w4 -shall be made prior to the employee leaving for out of town travel. The
following items shall apply to overnight stays:
• Hotel accommodations for the employee must be approved by the employee's Director
or Manager.
• In the event the employee is traveling on Utility—HUC business and experiences
inclement weather, to the extent that it is not safe to travel, or the employee is not able
to travel due to some circumstance that is beyond their control, then no prior approval
for hotel accommodations are necessary.
• Hotel rooms at convention or seminar sites are approved accommodations.
• Reimbursement is limited to employees and business related guests, and must be
directly related to business.
The following shall apply to expenses associated with meals:
• Meals w41--shall be limited to a maximum of $50 per day, including meal tips. The $50
per day is a maximum and not an allowance.
• Meal reimbursement is limited to employees.
• Expenses associated with alcoholic beverages will not be reimbursed.
Expense Report
An expense report shall be filled out for all reimbursement requests for purchases using
personal funds. Unsupported expenses using personal funds will not be reimbursed by HUC.
An expense report shall also be filled out for all company eF^4�.„t ea-F4travel purchases.
Unsupported expenses on an HUC credit card shall be reimbursed to HUC by the employee.
The expense report must state the type of expense (meal, travel, hotel, etc.), the date and the
business purpose. Alcohol is not a reimbursable expense. It is the employee's responsibility to
obtain an itemized receipt. The expense report shall be approved by your Director, Manager, or
Supervisor before submitting to the Financial Manager.
Worker's Compensation
An employee who is injured on the job or becomes ill due to job - related reasons is eligible
for worker's compensation benefits. The -Uti HUC's worker's compensation insurance
provider will pay the employee approximately 2/3 of the weekly gross wage or salary lost
due to injury or illness and the W4I+t HUC will pay the additional 1/3 of the weekly gross
wage for up to 120 work days. Thereafter, the employee may use accrued sick leave,
vacation leave, or compensatory time to pay the additional 1/3 lost wage or salary. PERA
and FICA are not deducted from the worker's compensation portion of the paycheck.
SECTION 5 - EMPLOYEE BENEFITS
Vacation
See Union Contract.
Holidays
Employees are eligible for holiday pay effective immediately upon hire. T",,,�- 't*PCHUC WW
shall observe the following days as holidays:
• New Year's Day
• Martin Luther King Day
• President's Day
• Memorial Day
• Fourth of July
• Labor Day
• Veteran's Day
• Thanksgiving Day
• Christmas Day
If the holiday falls on a Sunday, the following Monday shall be the holiday. If the holiday falls on
a Saturday, the preceding Friday shall be the holiday.
If Christmas falls on a Tuesday, Wednesday, Thursday or Friday, then the preceding day shall be
a Christmas Eve Day holiday. Additionally, there shall be two (2) floating holidays determined by
mutual agreement between the employee and Director or Manager. If Christmas falls on a
Saturday, Sunday, or Monday, there shall be no Christmas Eve Day holiday but there shall be
three (3) floating holidays determined by mutual agreement between the employee and
Director or Manager. Floating holidays must be used by the end of each calendar year.
Employees shall be paid eight (8) hours straight time for each of the holidays. However,
those employees governed by the Memorandum of Agreement, must comply with section 13.2
of that Agreement.
Temporary employees who work on a holiday shall be paid at the employee's regular base
pay rate and w&shall not receive holiday pay for hours not worked.
We have received info from MIRES on qualifying projects that 3M has
done in the year of 2013. After meeting with Anthony last week in
regard to the 3M rebate amount we can recommend two options
1) $15,000 to HTI (first come first served) and the remaining $25,000
to 3M. We had budgeted $40,000 to the Industrial rebates for
2013.
2) $15,000 to HTI and up to $80,000 to 3M for projects completed in
2013. We have justification for the larger amount regarding the
3M projects. (This option is $55,000 above our 2013 budget of
$40,000)
If they approve the $$$ we need to have authorization to pay the $$$
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Pay Equity Implementation Report
Part A: Jurisdiction Identification
Jurisdiction: Hutchinson Utilities Commision
contact: Jan Sifferath
Part B: Official Verification
Phone: (320) 234 -0540
1. The job evaluation system used measured skill, effort
responsibility and working conditions and the same
system was used for all classes of employees.
The system used was:
Description: Consultant system - grading
2. Health Insurance benefits for male and female classes of
comparable value have been evaluated and:
pass
Part C: Total Payroll
L4,201,093 7
is the annual payroll for the calendar year just ended
December 31.
1/25/2012
Jurisdiction Type: Utility Commission
jsifferath @ci.hutchinson.mn.us
E -Mail:
3. An official notice has been posted at:
Main Office
(prominent location)
informing employees that the Pay Equity
Implementation Report has been filed and is
available to employees upon request. A copy of the
notice has been sent to each exclusive
representative, if any, and also to the public library.
The report was approved by:
Hutchinson Utilities Commission
(go ning body)
(chief elected official)
President
(title)
✓® Checking this box indicates the following:
- signature of chief elected official
- approval by governing body
- all information is complete and accurate,
and
- all employees over which the jurisdiction has
final budgetary authority are included
Date Submitted: 1/30/14
Compliance Report
Jurisdiction: Hutchinson Utilities
225 Michigan Street SE
Hutchinson MN 55350
Report Year: 2014
Case: 1 - 2013 DATA (Shared (Jur and MMB))
Contact: Jan Sifferath Phone: (320) 234 -0540 E -Mail: jsifferath @ci.hutchinson.mn.us
The statistical analysis, salary range and exceptional service pay test results are shown below. Part I is general information
from your pay equity report data. Parts II, III and IV give you the test results.
For more detail on each test, refer to the Guide to Pay Equity Compliance and Computer Reports.
I. GENERAL JOB CLASS INFORMATION
II. STATISTICAL ANALYSIS TEST
A. Underpayment Ratio = 102.31 *
Male
Female Balanced All Job
Classes
Classes Classes Classes
# Job Classes
26
7 0 33
# Employees
50
8 0 58
Avg. Max Monthly
26
7
Pay per employee
6,153.87
5,456.43 6,057.67
II. STATISTICAL ANALYSIS TEST
A. Underpayment Ratio = 102.31 *
B. T -test Results
LDegrees of Freedom (DF) = 56 Value of T = 2.197
a. Avg. diff. in pay from predicted pay for male jobs = ($118)
b. Avg. diff. in pay from predicted pay for female jobs = ($701)
III. SALARY RANGE TEST = 0.00 (Result is A divided by B)
A. Avg. # of years to max salary for male jobs = 3.60
B. Avg. # of years to max salary for female jobs = 0.00
IV. EXCEPTIONAL SERVICE PAY TEST = 0.00 (Result is B divided by A)
A. % of male classes receiving ESP 0.00
B. % of female classes receiving ESP 0.00
*(If 20% or less, test result will be 0.00)
Male
Female
Classes
Classes
a. # At or above Predicted Pay
7
2
b. # Below Predicted Pay
19
5
c. TOTAL
26
7
d. % Below Predicted Pay
73.08
71.43
(b divided by c = d)
*(Result is % of male classes below predicted
pay divided by % of female classes
below predicted pay.)
B. T -test Results
LDegrees of Freedom (DF) = 56 Value of T = 2.197
a. Avg. diff. in pay from predicted pay for male jobs = ($118)
b. Avg. diff. in pay from predicted pay for female jobs = ($701)
III. SALARY RANGE TEST = 0.00 (Result is A divided by B)
A. Avg. # of years to max salary for male jobs = 3.60
B. Avg. # of years to max salary for female jobs = 0.00
IV. EXCEPTIONAL SERVICE PAY TEST = 0.00 (Result is B divided by A)
A. % of male classes receiving ESP 0.00
B. % of female classes receiving ESP 0.00
*(If 20% or less, test result will be 0.00)
BACKGROUND
The documents submitted for approval are required every three years for each governmental
agency in Minnesota. Minnesota Management and Budget administers the law and summarizes
the program with the following:
The Local Government Pay Equity Act (LGPEA) of 1984 (M.S. 471.991 to 471.999)
required local governments to "establish equitable compensation relationships" by
December 31, 1991. Other common terms for "equitable compensation relationships"
are "comparable worth" or "pay equity." Compliance must be maintained and
jurisdictions are periodically evaluated. Jurisdictions are on a three -year reporting cycle
with approximately 500 jurisdictions reporting each year.
The purpose of the law is "to eliminate sex -based wage disparities in public employment
in this state." Equitable compensation relationships are achieved when "the
compensation for female- dominated classes is not consistently below the compensation
for male- dominated classes of comparable work value... within the political subdivision. "'
Most positions within the Hutchinson Utilities Commission are reportable. Employees, who
occupy positions that do not qualify as `public employees' under the Public Employee Labor
Relations Act, (PELRA) are not reportable.
This Pay Equity Implementation Report is ready for final submission upon a successful vote.
WHEREAS
Hutchinson Utilities Commission is subject to the reporting provisions of The Local Government
Pay Equity Act (LGPEA) of 1984 (M.S. 471.991 to 471.999);
WHEREAS
The 2014 submission has been prepared and presented to the Hutchinson Utilities
Commission's governing board.
WHEREAS
The 2014 submission is due on or before 01/31/2014;
THEREFORE
The Hutchinson Utilities Commission approves the submission and authorizes the signing of the
implementation report.
4/—
MOTION:
SECOND:
' http : / /www.beta.mmb.state.mn.us /doc /comp /pay- equity /payequity.pdf