Loading...
04-27-2016 HUCMMINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, April 27, 2016 Call to order — 3:00 p.m. President Luhring called the meeting Luhring; Vice President Monty Morrow; Robert Wendorff; Attorney Marc Sebora; Absent: Secretary Mark Girard to order. Members present: President Donna Commissioner Anthony Hanson; Commissioner General Manager Jeremy Carter. Conflict of Interest Commissioner Hanson declared a conflict of interest in voting on the agenda item 2b, Ratify Payment of Bills, due to receiving a CIP rebate. 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills A motion was made by Commissioner Wendorff, seconded by Vice President Morrow to approve the Consent Agenda. Motion was unanimously carried. 3. Approve Financial Statements GM Carter presented the financial statements. After discussion, a motion was made by Commissioner Hanson, seconded by Commissioner Wendorff to approve the financial statements. Motion was unanimously carried. 4. Open Forum 5. Communication a. City Administrator — Matthew Jaunich L Street work scheduled next week on Milwaukee Avenue. ii. City Council approved a preliminary site plan for an 87 -unit apartment complex on the south side of Ridgewater College. b. Divisions i. Brenda Ewing — Nothing to report. Randy Blake — 1. Three production employees were sent to Houston for training on the LM 6000 engine. 2. Three General Electric representatives made a courtesy visit to introduce themselves as they explained there is restructuring going on in their company. iii. Dave Hunstad — 1. Working on a couple relocate projects. Collaborating with Nu -Telecom this week and next week. iv. Dan Lang — 1. Working on the capacity agreement with Jeremy Carter and Marc Sebora. v. Jared Martig - 1. Reviewing the BS & A software contract tomorrow. vi. John Webster - 1. The specific gravity meters are installed at the Fairfax and New Ulm interconnects. They are operational. Receiving prices for two to three additional meters. 2. On May 12, a bridge inspection firm is inspecting the pipe underneath the School Road bridge. 3. On May 12, United Natural Gas has a hearing with the PUC to decide whether they will be regulated or not which will determine if the Lafayette station project will take place this year. c. Legal — Attorney Sebora i. Nothing to report. d. General Manager — Jeremy Carter i. Working with Dan Lang on the capacity agreement. ii. Meeting tomorrow to review the BS & A software contract. iii. Working on the HUC investments. iv. Tracking the Legislative movement and providing the Board with updates. v. Will be continually updating the Board on the job compensation and Union information in the next couple months. 6. Policies a. Review Policies i. Sick Leave ii. Locating Customer's Underground Utilities — Electric iii. Temporary Service - Gas No changes were recommended at this time. b. Approve Changes i. Family & Medical Leave ii. Pregnancy & Parenting Leave iii. Sick/Vacation Leave Donation iv. Natural Gas Service Requirements & Charges A language change from Customer/HR Manager to human resources/payroll was recommended for the following policies: Family & Medical Leave; Pregnancy & Parenting Leave; and Sick/Vacation Leave Donation. The word "Fees" was added to the language in the Natural Gas Service Requirements & Charges policy. 2 After discussion, a motion was made by Vice President Morrow, seconded by Commissioner Hanson to approve the changes to the Family & Medical Leave; Pregnancy & Parenting Leave; Sick/Vacation Leave Donation; and Natural Gas Service Requirements & Charges. Motion was unanimously carried. (Changes attached.) 7. Unfinished Business a. Update on Pack Gas Discussions Marc Sebora spoke with New Ulm's City Attorney. They are waiting for their consulting firm's review. 8. New Business a. Approve Requisition #6669 for Plant 1 Heating System Randy Blake presented Requisition #6669 for Plant 1 Heating System in the amount of $57,200.00. After discussion, a motion was made by Commissioner Hanson, seconded by Vice President Morrow to approve Requisition #6669 for Plant 1 Heating System for $57,200.00. Motion was unanimously carried. (Requisition attached.) b. Discussion on Equipment and Fleet Replacement Program GM Carter gave a presentation on the proposed 2016 equipment and fleet program and timeline for Commission consideration. The Board commended HUC employees on their collaboration in putting the equipment and fleet program together. (Presentation attached.) 9. Adjourn There being no further business, a motion was made by Vice President Morrow, seconded by Commissioner Hanson to adjourn the meeting at 3:54 p.m. Motion was unanimously carried. Monty Yorrow, Vice President ATTEST: - t/ &- '15'onna Luhring, President 3 Exempt FAMILY AND MEDICAL LEAVE (FMLA) Pursuant to the Family and Medical Leave Act, employees are allowed up to 12 weeks unpaid leave during a 12 -month period for the following reasons: • Birth or care of the newborn child of the employee • Placement with the employee of a child for adoption or foster care • Serious health condition of the employee that makes the employee unable to perform the functions of the position of such employee • In order to care for an employee's dependent child, spouse, or parent suffering from a serious health condition • Any qualifying exigency arising out of the fact that the spouse, or a son, daughter or parent of the employee is on active duty, or has been notified of an impending call or order to active duty) in the Armed Forces in support of a contingency operation. Up to twenty-six (26) weeks of protectect leave per twelve (12) month period shall be granted to all eligible employees for the following reasons: • An eligible employee who is the spouse, son, daughter, parent, or next of kin of a covered service member shall be entitled to a total of 26 workweeks of leave during a twelve (12) month period to care for the service member. The leave described in this paragraph shall only be available during a single twelve (12) month period. • A covered service member is defined as a member of the Armed Forces, including a member of the National Guard or Reserves, who is undergoing medical treatment, recuperation, or therapy, is otherwise in outpatient status, or is otherwise on the temporary disability retired list, for a serious injury or illness. The term "serious injury or illness", in the case of a member of the Armed Forces, including a member of the National Guard or Reserves, means an injury or illness incurred by the member in the line of duty on active duty in the Armed Forces that may render the member medically unfit to perform the duties of the member's office, grade, rank, or rating. Spouses employed by HUC, both in regular positions, are jointly entitled to a combined total of 12 work weeks of family leave for the birth and care of a newborn child, for placement of a child for adoption or foster care, and to care for a parent who has a serious health condition. Spouses are entitled to a combined total of 26 weeks during a single twelve (12) month period to care for an eligible service member. During the single twelve (12) month period, an eligible employee shall be entitled to a combined total of 26 work weeks of total leave allowed under the FMLA. To be eligible for FMLA, the employee must have worked at least one year for HUC and worked at least 1,040 hours during the previous 12 months. In order to receive FMLA, the employee must request the leave by providing human resources/pavrol[the -Custem^4l=ID MaRageF 30 -day's notice prior to the requested starting date of the leave. If 30 -day's notice is not possible, the employee must provide as much notice as possible. The Guste eFHR Mama^•Human resources/pavroll shall provide the employee a "Medical Certificate" which must be completed by the employee's physician and returned to the . usteme A4 MaAageFhuman resources/gavroll. Pursuant to the FMLA, HUC may request a second opinion from another medical provider at HUC's expense. If the second opinion is different from the employee's physician's opinion, HUC shall seek a third opinion at HUC's expense. The third opinion shall prevail. HUC may require that a request for leave related to active duty or call to active duty be supported by a certification issued by the health care provider of the service member being cared for by the employee. The 12 weeks of available FMLA extend over 12 months. To determine whether the employee has any FMLA remaining, the GustemeFIHR Manage-human resources/gavroll shall review the 12 months preceding the request for FMLA. An employee may use the 12 weeks of FMLA intermittently over the 12-month period if necessary and may take the leave in increments of one hour or more. HUC may require a medical certificate attesting to the employee's fitness for duty prior to return to work. The fitness for duty report must be based on the particular health condition(s) for which the leave was approved and must address whether the employee can perform the essential functions of his/her regular position. An employee on FMLA for serious illness of the employee, the employee's spouse, dependent child or parent shall be required to use vacation or sick leave concurrent with the FMLA. HUC shall continue to pay its contribution toward health and dental insurance while an employee is on FMLA. The employee shall be required to continue payment of the employee portion of the premiums during the leave. If the employee fails to pay their portion of the premiums, HUC may terminate their insurance coverage subject to COBRA requirements. At the end of FMLA, an employee shall be returned to his/her former position or an equivalent position. For more information on FMLA, see the rcustemeFMR Manage human resources/gavroll. Non -Exempt FAMILY AND MEDICAL LEAVE (FMLA) Pursuant to the Family and Medical Leave Act, employees are allowed up to 12 weeks unpaid leave during a 12 -month period for the following reasons: • Birth or care of the newborn child of the employee • Placement with the employee of a child for adoption or foster care • Serious health condition of the employee that makes the employee unable to perform the functions of the position of such employee • In order to care for an employee's dependent child, spouse, or parent suffering from a serious health condition • Any qualifying exigency arising out of the fact that the spouse, or a son, daughter or parent of the employee is on active duty, or has been notified of an impending call or order to active duty) in the Armed Forces in support of a contingency operation. Up to twenty-six (26) weeks of protected leave per twelve (12) month period shall be granted to all eligible employees for the following reasons: • An eligible employee who is the spouse, son, daughter, parent, or next of kin of a covered service member shall be entitled to a total of 26 workweeks of leave during a twelve (12) month period to care for the service member. The leave described in this paragraph shall only be available during a single twelve (12) month period. • A covered service member is defined as a member of the Armed Forces, including a member of the National Guard or Reserves, who is undergoing medical treatment, recuperation, or therapy, is otherwise in outpatient status, or is otherwise on the temporary disability retired list, for a serious injury or illness. The term "serious injury or illness", in the case of a member of the Armed Forces, including a member of the National Guard or Reserves, means an injury or illness incurred by the member in the line of duty on active duty in the Armed Forces that may render the member medically unfit to perform the duties of the member's office, grade, rank, or rating. Spouses employed by HUC, both in regular positions, are jointly entitled to a combined total of 12 work weeks of family leave for the birth and care of a newborn child, for placement of a child for adoption or foster care, and to care for a parent who has a serious health condition. Spouses are entitled to a combined total of 26 weeks during a single twelve (12) month period to care for an eligible service member. During the single twelve (12) month period, an eligible employee shall be entitled to a combined total of 26 work weeks of total leave allowed under the FMLA. To be eligible for FMLA, the employee must have worked at least one year for HUC and worked at least 1,040 hours during the previous 12 months. In order to receive FMLA, the employee must request the leave by providing theGustere64414 MaeageFhuman resources/oavroll 30 -day's notice prior to the requested starting date of the leave. If 30 - day's notice is not possible, the employee must provide as much notice as possible. The Gwsteme64414 MaeageFHuman resourceshavroll shall provide the employee a "Medical Certificate" which must be completed by the employee's physician and returned to theGusteme4l=IR Manage human resources/Davroll. Pursuant to the FMLA, HUC may request a second opinion from another medical provider at RUC's expense. If the second opinion is different from the employee's physician's opinion, HUC shall seek a third opinion at HUC's expense. The third opinion shall prevail. HUC may require that a request for leave related to active duty or call to active duty be supported by a certification issued by the health care provider of the service member being cared for by the employee. The 12 weeks of available FMLA extend over 12 months. To determine whether the employee has any FMLA remaining, the Gusteme4"�- Managefhuman resources/Davroll shall review the 12 months preceding the request for FMLA. An employee may use the 12 weeks of FMLA intermittently over the 12 -month period if necessary and may take the leave in increments of one hour or more. HUC may require a medical certificate attesting to the employee's fitness for duty prior to return to work. The fitness for duty report must be based on the particular health condition(s) for which the leave was approved and must address whether the employee can perform the essential functions of his/her regular position. An employee on FMLA for serious illness of the employee, the employee's spouse, dependent child or parent shall be required to use vacation or sick leave concurrent with the FMLA. HUC shall continue to pay its contribution toward health and dental insurance while an employee is on FMLA. The employee shall be required to continue payment of the employee portion of the premiums during the leave. If the employee fails to pay their portion of the premiums, HUC may terminate their insurance coverage subject to COBRA requirements. At the end of FMLA, an employee shall be returned to his/her former position or an equivalent position. For more information on FMLA, see the GUStO"^^'4V14 PAanageFhuman resources/r)avroll. EXEMPT PREGNANCY AND PARENTING LEAVE Pursuant to the Minnesota Pregnancy and Parenting Act, employees who have worked for HUC for at least twelve (12) months and average at least twenty (20) hours per week are entitled to take an unpaid leave of absence. Female employees are eligible for prenatal care, or incapacity due to pregnancy, childbirth, or related health conditions as well as a biological or adoptive parent in conjunction with the birth or adoption of a child are eligible for up to twelve (12) weeks of unpaid leave and must begin within twelve (12) months of the birth or adoption of the child. In the case where the child must remain in the hospital longer than the mother, the leave must begin within twelve (12) months after the child leaves the hospital. Eligible employees must provide thirty (30) days written notice to the GUsteMeFF HD Manage human resources/oavroll of their desire to take parental leave. Employees are required to use their paid leave banks, such as sick leave or vacation. If the employee is also eligible for FMLA, the pregnancy and parenting leave under this section and FMLA shall run concurrently. The employee is entitled to return to work in the same position and at the same rate of pay the employee was receiving prior to commencement of the leave. Group insurance coverage will remain available while the employee is on leave pursuant to the Pregnancy and Parenting Leave Act, but the employee will be responsible for the entire premium unless otherwise provided in this policy (i.e., where leave is also FMLA qualifying). For employees on an FMLA absence as well, the employer contributions toward insurance benefits will continue during the FMLA leave absence. REASONABLE UNPAID WORK TIME FOR NURSING MOTHERS Nursing mothers will be provided reasonable unpaid break time to express milk for nursing her child for one year after the child's birth. HUC will provide a room (other than a bathroom) as close as possible to the employee's work area, that is shielded from view and free from intrusion from coworkers and the public and includes access to an electrical outlet, where the nursing mother can express milk in private. REASONABLE ACCOMMODATIONS TO AN EMPLOYEE FOR HEALTH CONDITIONS RELATING TO PREGNANCY HUC will attempt to provide a female employee who requests reasonable accommodation with the following for her health conditions related to her pregnancy or childbirth. • More frequent restroom, food and water breaks; • Seating; • Limits on lifting over 20 pounds and/or Temporary transfer to a less strenuous or hazardous position, should one be available. Unless such accommodations impose an undue hardship, HUC will engage in an interactive process with respect to an employee's request for a reasonable accommodation. NON-EXEMPT PREGNANCY AND PARENTING LEAVE Pursuant to the Minnesota Pregnancy and Parenting Act, employees who have worked for HUC for at least twelve (12) months and average at least twenty (20) hours per week are entitled to take an unpaid leave of absence. Female employees are eligible for prenatal care, or incapacity due to pregnancy, childbirth, or related health conditions as well as a biological or adoptive parent in conjunction with the birth or adoption of a child are eligible for up to twelve (12) weeks of unpaid leave and must begin within twelve (12) months of the birth or adoption of the child. In the case where the child must remain in the hospital longer than the mother, the leave must begin within twelve (12) months after the child leaves the hospital. Eligible employees must provide thirty (30) days written notice to the G.,AWAeF HR Manage human resourcesbavroll of their desire to take parental leave. Employees are required to use their paid leave banks, such as sick leave or vacation. If the employee is also eligible for FMLA, the pregnancy and parenting leave under this section and FMLA shall run concurrently. The employee is entitled to return to work in the same position and at the same rate of pay the employee was receiving prior to commencement of the leave. Group insurance coverage will remain available while the employee is on leave pursuant to the Pregnancy and Parenting Leave Act, but the employee will be responsible for the entire premium unless otherwise provided in this policy (i.e., where leave is also FMLA qualifying). For employees on an FMLA absence as well, the employer contributions toward insurance benefits will continue during the FMLA leave absence. REASONABLE UNPAID WORK TIME FOR NURSING MOTHERS Nursing mothers will be provided reasonable unpaid break time to express milk for nursing her child for one year after the child's birth. HUC will provide a room (other than a bathroom) as close as possible to the employee's work area, that is shielded from view and free from intrusion from coworkers and the public and includes access to an electrical outlet, where the nursing mother can express milk in private. REASONABLE ACCOMMODATIONS TO AN EMPLOYEE FOR HEALTH CONDITIONS RELATING TO PREGNANCY HUC will attempt to provide a female employee who requests reasonable accommodation with the following for her health conditions related to her pregnancy or childbirth. • More frequent restroom, food and water breaks; • Seating; • Limits on lifting over 20 pounds and/or Temporary transfer to a less strenuous or hazardous position, should one be available.•-------- Forma Unless such accommodations impose an undue hardship, HUC will engage in an interactive process with respect to an employee's request for a reasonable accommodation. ExEMrT SICK/VACATION LEAVE DONATION The HUC recognizes that a catastrophic illness and/or serious health condition of an employee or immediate family member (spouse or dependent child) may deplete an employee's available paid leave (sick/vacation/compensatory time). This policy is meant to provide employees with the option of assisting fellow employees at such a time. HUC employees having accrued sick or vacation leave shall be allowed to donate a portion of such accrued leave to fellow employees experiencing a catastrophic illness and/or serious health condition suffered by the employee, the employee's spouse, or the employee's dependent child(ren). A catastrophic illness and/or serious health condition includes but is not limited to, heart attack, stroke, organ transplant, or other life threatening illness or debilitating condition as defined by a physician's diagnosis. The donation of leave from one employee to another shall be subject to the following terms and conditions. 1. An employee is only eligible to receive donated leave for time lost from normal work hours due to a life threatening disease or condition as defined above. 2. An employee shall be eligible to receive donated leave only after the employee's accrued sick, vacation, and compensatory time have been exhausted. 3. All requests to receive donated leave must be in writing to the Gwsteme.4WR Manage human resources/Davroll and must be accompanied by supporting medical data. No full time employee shall be allowed to receive more than a total of twenty (20) work days or 160 hours of donated leave per single major life threatening disease or condition unless requested and approved by the General Manager. There is no limit on catastrophic events per year. 4. An employee may only use donated leave up to the time of eligibility for a long-term disability benefit (if applicable), or for the maximum number of days allowed to be donated, whichever occurs first. 5. A full time employee may donate no more than sixteen (16) hours of leave per calendar year to a single fellow employee. This shall not be construed to prohibit donating sixteen (16) hours per year to additional employees. Leave donation shall be calculated using time and not an equivalent cash amount. 6. An employee who is donating paid leave must do so from the employee's accrued sick and/or vacation leave balance. A written request to donate leave must be made to the Gusteffle4 R ManageFhuman resources/Davroll on forms designated by HUC for that purpose. All donations made shall be kept confidential. 7. The General Manager shall have the right to deny use of donated leave or limit its use if it is determined to be in the best interests of HUC. Donated leave shall be subtracted from the donor's accumulated balance and added to the requested employee as part of the payroll function. Donated time shall be processed and used by the date of submission until the eligible amount of donated leave is reached. Contributions of leave hours exceeding the eligible amount shall be returned to the donating employee, and shall not be transferred. Donated hours shall be used in the order they are received. NON-EXEMPT SICKIVACATION LEAVE DONATION The HUC recognizes that a catastrophic illness and/or serious health condition of an employee or immediate family member (spouse or dependent child) may deplete an employee's available paid leave (sick/vacation/compensatory time). This policy is meant to provide employees with the option of assisting fellow employees at such a time. HUC employees having accrued sick or vacation leave shall be allowed to donate a portion of such accrued leave to fellow employees experiencing a catastrophic illness and/or serious health condition suffered by the employee, the employee's spouse, or the employee's dependent child(ren). A catastrophic illness and/or serious health condition includes but is not limited to, heart attack, stroke, organ transplant, or other life threatening illness or debilitating condition as defined by a physician's diagnosis. The donation of leave from one employee to another shall be subject to the following terms and conditions. 1. An employee is only eligible to receive donated leave for time lost from normal work hours due to a life threatening disease or condition as defined above. 2. An employee shall be eligible to receive donated leave only after the employee's accrued sick, vacation, and compensatory time have been exhausted. 3. All requests to receive donated leave must be in writing to the Gust ^.duo ManageFhuman resources/oavroll and must be accompanied by supporting medical data. No full time employee shall be allowed to receive more than a total of twenty (20) work days or 160 hours of donated leave per single major life threatening disease or condition unless requested and approved by the General Manager. There is no limit on catastrophic events per year. 4. An employee may only use donated leave up to the time of eligibility for a long-term disability benefit (if applicable), or for the maximum number of days allowed to be donated, whichever occurs first. 5. A full time employee may donate no more than sixteen (16) hours of leave per calendar yea to a single fellow employee. This shall not be construed to prohibit donating sixteen (16) h urs per year to additional employees. Leave donation shall be calculated using time and not an equivalent cash amount. 6. An employee who is donating paid leave must do so from the employee's accrued sick an /or vacation leave balance. A written request to donate leave must be made to tM-Gusteme HF, A4aPaWhuman resources/oavroll on forms designated by HUC for that purpose. All donati ns made shall be kept confidential. 7. The General Manager shall have the right to deny use of donated leave or limit its use if t is determined to be in the best interests of HUC. Donated leave shall be subtracted from the donor's accumulated balance and added to the requested employee as part of the payroll function. Donated time shall be processed and used by the date of submission until the eligible amount of donated leave is reached. Contributions of leave hours exceeding the eligible amount shall be returned to the donating employee, and shall not be transferred. Donated hours shall be used in the order they are received. Natural Gas Service Requirements and Charges HUC shall not install any facilities until all affected properties are within 6 inches of final grade. New Service Installations Fees Single -family residential service — % inch $200.00 Commercial, Industrial, Multi-family service Time and Material Expense HUC shall furnish and install the underground service line. The underground service line to the meter is the property of HUC. Excess flow valves shall be installed on all new single -family residential services lines. All new natural gas consumer-owned fuel lines, downstream of the metering facilities, must be pressure tested, prior to the gas meter being set. The test must be verified by an approved inspector. No structures or buildings shall be located over underground natural gas lines. In the event a service line/distribution main has been built over by a customer, the natural gas facilities must be relocated to a location approved by HUC. The customer shall be responsible for all costs involved in relocating these facilities. No service line valve or any portion of the natural gas metering facilities may be buried. The customer shall be responsible for all costs incurred in raising all facilities. Installation of Natural Gas Service Lines — November 1 through March 31 Final determination on installation of natural gas service lines shall be made by HUC HUTCHINSON UTILITIES COMMISSION REQUISITION FORM Supplier: B&C PLUMBING & HEATING Ship To: HUTCHINSON UTILITIES COMMISSION Requisition No. 006669 15 MONROE STREET SE 175 MICHIGAN ST SE HUTCHINSON, MN 55350 HUTCHINSON, MN 55350 Phone: 320-234-6900 Phone: 320-587-4746 Fax: 320-587-0384 Fax: 320-587-4721 Item # I Qty. I (Part Num.) Description I Request Date I Acct # I WO # I Unit Price I Per Item Total 1 1 (000-00000) 05/30/2016 1073410000 11602 57,200.00 Each 57,200.00 Line Remarks: LABOR AND MATERIALS TO SUPPLY GAS FIRED HYDRONIC HEATING BOILER SYSTEM FOR PLANT 1 HEATING AS PER SPECS BY RANDY BLAKE Sales Tax 0.00 Special Charges 0.00 Total 57,200.00 Requisitioned By: BLAKE, RANDY Date: 04/0712016 Approved By: Date: Page 1 of 1 Hutchinson Utilities Commission 225 Michigan Street SE Hutchinson, Minnesota 55350-1905 PLANT 1 HEATING SYSTEM UPGRADE Bid Specification Labor and materials to install a new boiler heating system at the Hutchinson Utilities Power plant 1. Bids to include all piping, pumps, controls, complete boiler installation and operational training. Materials and equipment to be furnished Two- IBC SL 80-399K BTU 95.7% AFUE wall mounted condensing boilers (or equivalent) to be piped in primary/secondary configuration with NPT hydro separator, RPZ on boiler fill line. ANSI flange kits, valves, and hardware. All boiler gas piping„ venting, and terminations kits. Two boiler pumps to be sized as needed for proper operation of the existing and future load. One variable speed system ,pump. Expansion tank sized for the application. Low water cut-outs and high limit cut offs per code. All controls as needed for 2 boiler control. All safety controls for above listed equipment. Five — 25,000 BTU HB series Beacon Morris horizontal hydronic unit heaters (or equivalent) Three — 75,000 BTU HV series Beacon Morris vertical hydronic unit heaters (or equivalent) System piping to be all copper with unions and shut-off valves at each unit heater. Piping mains to be sized to add future unit heater loads. One thermostat for upper level and one for the lower level. System to include provisions for adding chemical treatment on line. Donna Luhring President Monty Morrow Send bids by email to: rblake@i.hutchinson.mn.us Vice President Mark Girard Secretary Anthony Hanson Commissioner Robert Wendorff Commissioner Jeremy Carter General Manager Tel 320-587-4746 Fax 320-587-4721 �V�CNINSO,�, Hutchinson UtilitiesCommission UTI L IT1ES 2016 Equipment/Fleet Presentation Wednesday, April 27th, 2016 3:00 p.m. OThemes of Presentation ❑ Review the Equipment/Fleet process ❑ Discuss prioritization of Equipment & Fleet, Infrastructure o Provide current overview of HUC's equipment & fleet ❑ Discuss the current valuations &approach to an Equipment/Fleet Program ❑ Discuss a potential funding mechanism and the internal accounting for an Equipment/Fleet program. ❑ Solicit Commission Feedback on the preliminary presented program 0 HUC's Equipment/Fleet Process ❑ Put together one current comprehensive inventory list Type of equipment, year current & future replacement value, estimated useful life ana estimated Y replacement year Adjusted future costs by inflation ❑ Prioritized the equipment/fleet o Critical, Very Important, Important, Future Consideration o Discussed buying., leasing, used, replacement timeframes, reallocatin equipment to different areas, downsizing equipment fleet, point purchases, operational changes ... etc ❑ Identified the annual funding requirements Based off estimated replacement year, estimated.repIacement cost in that year, minus trade -ii -n'7 -sales price of old equipment Estimated trade-in/resale values on current equipment ❑ Manggement leveled off the funding requirements to create a consistent forward looking program. �HUC'sPrioritization Rating r/LIT1E ❑ Priority 1: Critical Projects currently underway or projects/equipment that are considered essential to HUC's operatio s, and should not be elayed beyond the year. requested. Failure to fund these protects%quipment c uld serious) jeopardize HUC s ability to provide service reliability to the customers and/or expose HyUC to a potential liability and negative legal exposure. ❑ Priority 2: Very Important Projects or equipment that are needed by HUC to improve or maintain operations, and to delay would cause deterioration or further deterioration of current operation and7or level of service to the customers of HUC. These should not be delayed beyond the year requested. ❑ Priority 3: Important a Projectsor equipment th-at are -needed -by -HU(- tn improve or maintain operations, and should be done as soon as funds can reasonably be made available. ❑ Priority 4: Future Consideration Projects or equipment which are desirable, but needing further study and may need to be funded to maintain operations, safety, or infrastructure desired within the community �utCNINSO,�. d RUC's Current Equipment & Fleet Inventor Y UTI L 171ES ❑ 22 Light Vehicles/Equipment o Transportation/light operational trucks (16) o Metering truck & van (2) o Forklift (1) o Scissor Lift (1) 13 Fuel Truck (1) o Air Compressor (1) ❑ 26 Heavy Vehicles/Equipment o Vactrons (2) o Drill (1) o Skidsteers (2) o Freightliner Bucket truck (1) o Bucket/service trucks (2) o N.G. Welding Trucks (2) o Dump trucks (2) o Trencher/Plow (1) 13 Mini Excavator (1 ) o Tractor/Backhoe (3) o Heavy Duty Forklifts (2) 13 Service Trucks (4) 13 Main Plow/Service Plow (2) 13 International 4900 Altec - Heavy Truck (1) HUC's Current Inventory Valuation ❑ Total Equipment/Fleet (48) Current Est. Replacement Costs - $2,125,000 ❑ Light Equipment/Fleet (22) Current Est. Replacement Costs - $544,000 (~26%) ❑ Heavy Equipment/Fleet (26) Current Est. Replacement Costs - $1,581,000 (-74%) Estimated Trade-in or Resale Value (Model) Light Equipment — 10% of Current Replacement Value (CRV) Heavy Equipment — 20% of CRV Trade-in/Sales Value will fluctuate based on type of equipment, condition, market cond itions..etc HUC's 2017 Anticipated E&F Inventory ❑ 2016 Equipment Sales ($75,000) 2000 Plow —estimated sales value: $25,000 (H) D 2000 Case 660 Trencher/Plow —Est. sales value: $15,000 (H) D 1988 John Deere Tractor/Backhoe —Est. sales value: $15,000 (H) D 1999 New Holland Skidsteer — Est. sales value: $15,000 (H) v 2006 Chevrolet truck —Est. sales value: $5,000 (L) ❑ 2017 Equipment & Fleet Inventory 21 "Light" vehicles/equipment (-1) 23 "Heavy" vehicles/equipment (sell -4, add +1) Newly added equipment: Estimated at $25,000 ® Leave residual beginning cash balance for replacement of current equipment and fleet starting in 2017. cxIwsoy �0 Fleet/Equip. Expense by Priority Classification V>/LITIES $275,000 $250,000 $225,000 $200,000 $1.75,000 $150,000 $125, 000 $100,000 $75,000 $50,000 $25�, 000 s- 2017 20M 2019 2020 2021 2022 2023 2024 2025 2016 Average IIIIIIII1 0fdcal IIIIIIII VeryImportant /mpo►tant iiiiiiii 1OTAL —Linear (TOTAL) 39 Mi $275,000 $250,000 $215,000 $200,000 $175,000 $150,000 $125,000 $100,000 $75,000 $50,91M $25,000 Fleet/Equipment Annual Funding 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Average Fleet Expenses Trade -In Value- Annual Funding —Linear (Annual Funding) 4 ��ZCNINSO,�. Commission Considerations UT/LITIES ❑ 2016 Plan Sell 5 pieces of equipment/vehicles Designate cash proceeds for the purchase of 1 new piece of equipment in 2017 & keep residual cah balance from the sale of the equipment for replacement of current equipment fleet inventory ❑ 2017 Plan Replace 4 pieces of current equipment/fleet inventory (-$166,500) ❑Annual funding level of $150K - $175K annually for Fleet/Equipment Replacement Program ❑ Commission Designated cash balance Could change at the discretion of the commission Trade-in or direct sales of equipment or fleet would go into this designated program for future replacements ��ZCHINSO,�. Hutchinson Utilities OT�LITIES Discussion or Questions?