12-20-2017 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, December 20, 2017
Call to Order — 3:00 p.m.
In the absence of President Monty Morrow, Vice President Anthony Hanson called the
meeting to order at 3:00 p.m. Members present: Vice President Anthony Hanson;
Commissioner Robert Wendorff; and Commissioner Don Martinez. Secretary Mark
Girard was absent. Others present: General Manager Jeremy Carter; Attorney Marc
Sebora.
1. Conflict of Interest
There were no conflicts of interest noted.
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Wendorff, second by Commissioner Martinez to approve
the Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
General Manager Carter and Jared Martig presented the financial statements.
Jared Martig noted with the early meeting that there were a few estimates used.
Everything is on track for the Electric Division. Gas Division shows a decrease from
last year of $51 k, however there was a $236k payment received on the Lafayette
improvements in Other Revenues in November 2016.
General Manager Carter noted the Electric Division cash increased due to receiving
$17M in bond proceeds. Electric Division is fairly consistent. General Manager
Carter also mentioned there was a 37% increase in heating days.
Jared Martig mentioned that there was $13M invested in short-term bonds.
Motion by Commissioner Martinez, second by Commissioner Wendorff to approve
the financial statements. Motion carried unanimously.
4. Open Forum -none
5. Communication
a. City Administrator — Matt Jaunich- Absent
b. Divisions
i. Dan Lang, Engineering Services Manager —Absent
ii. Dave Hunstad, Electric Transmission/Distribution Manager — Starting on hotel
site and will be setting up temporary power this week
iii. Randy Blake, Production Manager — Continuing to work on units 6 & 7. Have
some building modifications coming up; concrete foundation has to be cut-
down and recapped, remove walls at Plant 1, remove old Tower water pump
bases, replace underground 16 -inch pipes to 20 -inch. These projects will all
be coming forth. Will be going out to get local bids to remove walls. Also
working hard at Unit 8 to get the exciter project done for year-end.
iv. John Webster, Natural Gas Division Manager- End of year
v. Jared Martig, Financial Manager —End of year.
c. Brenda Ewing, Human Resources — Nothing to report
d. Legal — Marc Sebora — Nothing to report
e. General Manager — Jeremy Carter
i. Working on year-end. Auditors will be here January 29
ii. Will be having an on-site Cost of Service Study presentation January 17 at
3:30pm. Have extended an invitation to Matt Jaunich and City Council to
attend. Location is yet to be determined.
iii. Met with the PILOT committee this week. Made some minor wording
changes to the amended draft resolution and the revisions were sent to the
commission.
iv. Next month need to look at reorganization and elect new officers
v. Finished up benefits.
6. Policies
a. Review Policies
i. Purpose of this Handbook
ii. Surplus Property Policy (every 3 years)
b. Approve Changes
i. Section 1 — Introduction — as noted, adding clarity
ii. Definitions — as noted, more current with terminology
iii. Payments of HUC Payables — as noted, amending dates every year.
Motion by Commissioner Wendorff, second by Commissioner Martinez, to approve
the policy changes as recommended. Motion carried unanimously.
7. Unfinished Business
a. Update of Pack Gas Discussions
Mr. Sebora noted there is nothing new from Heartland Corn. There has also
been turnover at Nu -Ulm so there may be delays. Expecting to take longer.
8. New Business
a. Approve 2018 Budget
Mr. Carter spoke about the 2018 Budget. Mr. Carter pointed out in the Budget
packet on page 71, 2016 is listed as a budget, these numbers are actual not budget
I••
numbers. Last month Mr. Martinez mentioned to revisit the depreciation numbers,
this was reviewed and has now been increased by $100k.
Commissioner Hanson inquired about the 2018 pilot transfer. Mr. Carter noted the
pilot would increase over the next 3 years phasing in a 4.5% increase.
After further discussion, Mr. Carter looked at the commission for feedback on the
presentation budget book. Last year there were more spreadsheets. This year it
was designed to be more readable.
Commissioner Hanson noted that he had talked with President Morrow and
Secretary Girard and they are both pleased with the budget.
Motion by Commissioner Martinez, second by Commissioner Wendorff, to approve
the 2018 Budget. Motion carried unanimously.
b. Approve Moving 2018 Pay Grid
Mr. Carter spoke about moving the 2018 Pay Grid. Every year inflation is
considered so it can be determined if the pay grid is accurate. Brenda looked at
indexes and it is recommended moving the pay grid 2%. This move does not affect
performance but keeps up with the industry, inflation, and proper organizational
structure.
Mrs. Ewing noted the pay study was completed a couple years ago and this needs
to be reviewed every few years.
Commissioner Hanson inquired the timing for this to take place. Mr. Carter replied
the 1St quarter in 2018.
Motion by Commissioner Wendorff, second by Commissioner Martinez, to approve
Moving the 2018 Pay Grid. Motion carried unanimously.
c. Conduct the Performance Review of Hutchinson Utilities Commission General
Manager.
Vice President Hanson introduced the agenda item, the General Manager's annual
performance review. Hanson advised General Manager Jeremy Carter that he has
the option to have the performance review conducted as either an open session or a
closed session of the Utility Commission. Mr. Carter indicated his decision to have
the review as part of a closed session.
Commissioner Hanson entertained a motion to go into closed session to conduct the
twelve-month (annual) performance review as permitted under Minnesota Statute
13D.05, Subdivision 3(a). Motion by Commissioner Martinez, second by
Commissioner Wendorff to go into closed session to conduct the General Manager's
performance review. The motion passed unanimously. The Commission then
proceeded into a closed session at 3:32 p.m.
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Hutchinson Utilities Commission
Summary of Closed Meeting Proceedings
General Manager Performance Appraisal
Wednesday, December 20, 2017
On December 20, 2017, the Hutchinson Utilities Commission conducted a closed meeting for
the annual performance appraisal for General Manager, Jeremy Carter. Individuals present
included General Manager Jeremy Carter, Commission Members Anthony Hanson, Don
Martinez and Bob Wendorff, City Attorney Marc Sebora, and City of Hutchinson Human
Resources Director Brenda Ewing. Commissioners Monty Morrow and Mark Girard were
absent. Mr. Carter exercised his right to close the proceedings to the public as permitted under
Minnesota Statute 13D.05, Subdivision 3(a).
Motion by Martinez, second by Wendorff to go into closed session to conduct the General
Manager's performance review. The motion passed unanimously. The Commission then
proceeded into a closed session at 3:32 p.m.
The Commission reviewed Mr. Carter's performance for the current calendar year. The review
is required per the terms of the employment contract in place between the Hutchinson Utilities
Commission and General Manager Carter.
Mr. Carter's performance was evaluated in the following areas: Organizational Management,
Fiscal/Business Management, Program Development, Relationship & Communication with the
Commission, Long -Range Planning, and Relationships with Public & Outside Organizations. The
consensus of the Commission is that Mr. Carter's cumulative performance for the review period
was found to be 4.31 on the rating scale of 0 — 5, and, per the Hutchinson Utilities Commission,
is exceeding job requirements on the ratings scale.
The employment contract between Hutchinson Utilities and Mr. Carter indicates that
salary increases for the General Manager are subject to the provisions of the Compensation
Plan section of the Hutchinson Utilities Commission Exempt Employee Handbook.
Motion by Wendorff, second by Martinez to approve a 2018 salary of $158,921.98, or a 6%
annual increase of $8,995.58 over the 2017 salary. Motion carried unanimously.
Motion by Martinez, second by Wendorff to close the closed session. The motion passed
unanimously. The Commission proceeded into open session at 4:30 p.m.
Motion to adjourn by Wendorff, second by Martinez. The motio carried u nimously, and the
meeting adjourned at 4:31 p.m.
ar Girard, Secretary
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ATTEST:
Monty Morrow, Vieesident