04-29-2020 HUCCP
HUTCHINSON UTILITIES COMMISSION
AGENDA
REGULAR MEETING
April 29, 2020
3:00 p.m.
1. CONFLICT OF INTEREST
2. APPROVE CONSENT AGENDA
a. Approve Minutes
b. Ratify Payment of Bills
3. APPROVE FINANCIAL STATEMENTS
4. OPEN FORUM
5. COMMUNICATION
a. City Administrator
b. Divisions
c. Human Resources
d. Legal
e. General Manager
6. POLICIES
a. Review Policies
i. Section 4 of Exempt Handbook
ii. Section 4 of Non-Exempt Handbook
b. Approve Changes
i. Compensation Plan: Exempt and Non-Exempt
7. UNFINISHED BUSINESS
a.
8. NEW BUSINESS
a. Approve Requisition #8394 Utility Service Body for 2020 Welding
Vehicle
9. ADJOURN
MINUTES
Regular MeetingHutchinson Utilities Commission
Wednesday, March 25, 2020
Call to order 3:00 p.m.
President Don Martinez called the meeting to order. Members present: President Don
Martinez; Vice President Matt Cheney; Commissioner Monty Morrow; Commissioner
Anthony Hanson; GM Jeremy Carter; Attorney Marc Sebora
Absent: Secretary Robert Wendorff
1. Conflict of Interest
None
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Hanson, second by Commissioner Morrow to approve the
Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
GM Carter presented the Financial Statements. Although usages are down, both
Electric and Natural Gas Divisions are trending well. Due to the weather and
pandemic, projects for the year have not started yet. 2020 Main Street project is still
scheduled to start on April 13.
Motion by Commissioner Cheney, second by Commissioner Hanson to approve the
financial statements. Motion carried unanimously.
4. Open Forum
5. Communication
a. City Administrator Matthew Jaunich Absent
b. Divisions
i. Dan Lang, Engineering Services Manager Absent
ii. Dave Hunstad, Electric Transmission/Distribution Manager Absent
iii. Randy Blake, Production Manager Absent
iv. John Webster, Natural Gas Division Director Absent
v. Jared Martig, Financial Manager- Absent
c. Human Resources - Brenda Ewing Absent
d. Legal Marc Sebora
i. Nothing to report for legal
ii. City Council meeting last night passed an ordinance affirming Emergency
Declaration by Mayor Forcier related to COVID-19. Main components of
1
the
Plan 2) gives the City leeway on purchasingability and bidding laws and 3)
provides the City Administrator additional authority to be flexible with
In summary, the
declaration is to make sure the City is prepared for if and when the virus
would affect the City of Hutchinson.
GM Carter pandemic response and the various levels. One
item to note is that the community will not be officially notified if there is a
case in the City due to HIPPA and privacy laws. Management will continue
to monitor the situation and make necessary precautionary steps and
adjustments to staff if and when needed. Will be preparing a response to
the Department of Commerce since HUC is considered an essential
service. The response will consist of how HUC is staying essential and
what steps are being used to keep the power on and that gas keeps flowing.
Staff will continue to monitor and will inform the commissioners on next
steps.
Mr. Sebora noted that depending on how the pandemic evolves, meeting
structures may need to change to teleconferencing or video meeting. A
priority is to make sure everyone stays safe.
e. General Manager Jeremy Carter
i. Focus right now is the Pandemic response.
ii. Operations are going as normal, contingencies plans are in place to keep
everything moving forward.
6. Policies
a. Review Policies
i. Section 3 of Exempt Handbook
ii. Section 3 of Non-Exempt Handbook
No changes recommended at this time.
b. Approve Changes
No changes recommended at this time.
7. Unfinished Business
a. Change---Follow up conversations on Possible City Charter Amendment to
change the eligibility requirements to serve as a Hutchinson Utilities
Commissioner
Mr. Sebora recapped discussions that were held in December and January on
increasing the pool of possible commissioner candidates to serve on the Utilities
Commission by allowing owners of businesses to potentially serve as
commissioners. Since that time, the question has arisen as to how many of the five
commissioners this new category of qualification should apply to. The belief of the
overall feeling from the commission from past discussions was that one
2
commissioner would be able to serve with this new qualification but an actual
number was neverdiscussed at either of the other meetings.
Discussions were held on the number of commissioners that would be able to serve
with this new qualification and the consensus of the Commissioners was that it would
be one commission member. Commissioners all agreed it was implied and assumed
that it was one.
President Martinez gave direction to Mr. Sebora that it would be one member. Mr.
Sebora will forward the number to the charter commission in April.
8. New Business
a. Approve and Daily Swing Supply Agreement
GM Carter
Swing Supply Agreement.
This agreement provides transportation r facilities
from March 1, 2020 through March 1, 2021. Meter charges have been changed
to follow the Cost of Service Study.
Discussions were held on how the agreements for 3M, HTI and Ohly will fall more
in the with the rate study.
President Martinez inquired if there was a concern from a legal standpoint on the
2-month lag. Mr. Sebora assured the Commission there was not.
A motion by Commissioner Morrow, second by Commissioner Hanson to Approve
Agreement. Motion
carried unanimously.
b. Approve Requisition #8348 Sauer WP45L Air Compressor Package
GM Carter presented approval of requisition #8348 Sauer WP45L Air
Compressor Package. Back in January, Mr. Blake had mentioned that 2
instrument air compressors are not enough to run 3 engines. Staff is looking to
add a third compressor, this will speed up the process and lower the overall run
times on all units. This item was budgeted in the CIP.
A motion by Commissioner Hanson, second by Commissioner Cheney to
Approve Requisition #8348 Sauer WP45L Air Compressor Package. Motion
carried unanimously.
c. Approve Amending the Advertisement for Bid on Plant #2 Grounding
Transformer.
GM Carter presented approval of amending the Advertisement for Bid on Plant #2
3
Grounding Transformer. With the current business operations and people
working from home, Staff would like to extend the bid submittal date an additional
3 weeks to April 21. Staff believes extending the advertisement for bid date is a
better alternative than not receiving or receiving very few bid responses while
businesses are working through the circumstances surrounding the COVID-19
Pandemic.
A motion by Commissioner Hanson second by Commissioner Morrow to Approve
Amending the Advertisement for Bid on Plant #2 Grounding Transformer. Motion
carried unanimously.
d. Approve Amending the Advertisement for Bid on Plant #2 25/46.7 MVA
Transformer
GM Carter presented approval of amending the advertisement for bid on Plant #2
25/46.7 MVA Transformer. As stated above with the Advertisement for Bid on
Plant#2 Grounding Transformer, Staff would also like to extend the Advertisement
for Bid on Plant #2 25/46.7 MVA Transformer.
President Martinez questioned if 3 weeks for both Advertisement for Bids is
sufficient. GM Carter expressed that Staff believes 3 weeks is sufficient. Staff is
anticipating a slower lead time of about 9-12 months due to product supply but
would like to get the process moving. Will continue to do preparations of the pads
and getting the site prepared. Most of the construction costs will not happen until
2021.
A motion by Commissioner Cheney second by Commissioner Hanson to Approve
Amending the Advertisement for Bid on Plant #2 25/46.7 MVA Transformer.
Motion carried unanimously.
GM Carter added that additional information was received back from the
insurance claim on the transformers and this will be reviewed with the brokers
and the League tomorrow as to what is being covered and what is not. Will keep
the Commissioners up to date on the conversations.
rd
GM Carter also mentioned that there is some legislation coming out on the 3
federal stimulus bill which might be applicable to HUC. One of the provisions is
on debt collectors providing essential services, utilities cannot disconnect power
or charge late fees. Another provision is that utilities cannot collect on past due
balances for 120 days after the pandemic has ceased, meaning if the pandemic is
over in July, HUC has to wait 4 months to start collecting on unpaid past due
balances. Just something that Staff and Commission Board need to be aware of.
Staff may need to come to the Board to see how uncollectables may need to be
addressed.
4
Commissioner Hanson stated when and if tracking of the numbers start and if
noticing a trend that needs to be addressed to please let the Board know.
GM Carter agreed.
iii. Adjourn
There being no further business, a motion by Commissioner Morrow, second by
Commissioner Hanson to adjourn the meeting at 3:36p.m. Motion carried
unanimously.
__________________________
Robert Wendorff, Secretary
ATTEST: _________________________
Don Martinez, President
5
HUTCHINSON UTILITIES COMMISSION
COMBINED DIVISIONS
FINANCIAL REPORT FOR MARCH, 2020
March, 2020 MonthYear to Date 25% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Combined Division
Customer Revenue$ 2,945,845 $ 3,129,182 $ (183,337)(5.9%)$ 9,597,685$ 10,536,715 $ (939,030)(8.9%)$ 35,819,11626.8%
Sales for Resale$ 164,788$ 196,708$ (31,920) (16.2%)$ 466,332$ 647,437$ (181,105)(28.0%)$ 3,007,25015.5%
NU Transportation$ 82,161$ 81,147$ 1,0141.2%$ 247,582$ 245,961$ 1,621 0.7%$ 898,64027.6%
Electric Division Transfer$ 55,440$ 54,982$ 4580.8%$ 166,321$ 164,946$ 1,375 0.8%$ 665,28325.0%
Other Revenues$ 29,811$ 44,801$ (14,990) (33.5%)$ 205,910$ 137,845$ 68,06549.4%$ 466,20744.2%
Interest Income$ 50,476$ 51,195$ (719)(1.4%)$ 162,738$ 126,115$ 36,62329.0%$ 383,45642.4%
TOTAL REVENUES$ 3,328,521 $ 3,558,015 $ (229,494)(6.5%)$ 10,846,568 $ 11,859,019 $ (1,012,451)(8.5%)$ 41,239,95226.3%
Salaries & Benefits$ 509,398$ 498,008$ 11,3902.29%$ 1,617,212$ 1,588,143$ 29,0691.8%$ 6,946,88023.3%
Purchased Commodities$ 1,598,068 $ 1,772,959 $ (174,891)(9.9%)$ 5,411,249$ 6,235,721$ (824,472)(13.2%)$ 19,252,47728.1%
Transmission$ 164,296$ 277,538$ (113,242)(40.8%)$ 428,535$ 613,635$ (185,100)(30.2%)$ 2,680,00016.0%
Generator Fuel/Chem.$ 17,792$ 41,327$ (23,535) (56.9%)$ 33,393$ 77,234$ (43,841)(56.8%)$ 825,8754.0%
Depreciation$ 327,083$ 327,083$ -0.0%$ 981,250$ 981,250$ -0.0%$ 3,925,00025.0%
Transfers (Elect./City)$ 211,043$ 188,434$ 22,60912.0%$ 633,122$ 565,302$ 67,82012.0%$ 2,532,47525.0%
Operating Expense$ 187,988$ 176,129$ 11,8596.7%$ 565,366$ 565,785$ (419) (0.1%)$ 2,605,31321.7%
Debt Interest$ 89,542$ 97,334$ (7,792)(8.0%)$ 268,627$ 292,002$ (23,375)(8.0%)$ 1,074,50725.0%
TOTAL EXPENSES$ 3,105,211 $ 3,378,812 $ (273,601)(8.1%)$ 9,938,754$ 10,919,072 $ (980,318)(9.0%)$ 39,842,52724.9%
NET PROFIT/(LOSS)$ 223,310$ 179,203$ 44,10724.6%$ 907,815$ 939,947$ (32,133)(3.4%)$ 1,397,42565.0%
Combined Divisions - Financial/Operating Ratios
MarchMarchYTD YTD 2020HUC
20202019Change20202019ChangeBudgetTarget
Gross Margin %35.7%31.9%3.8%35.1%33.2%1.9%34.6%26% - 28%
Operating Income Per Revenue $ (%)7.2%5.8%1.4%8.1%8.9%-0.8%4.6%1%-4%
Net Income Per Revenue $ (%):6.7%5.0%1.7%8.4%7.9%0.4%3.4%0%-1%
Notes/Graphs:
HUTCHINSON UTILITIES COMMISSION
ELECTRIC DIVISION
FINANCIAL REPORT FOR MARCH, 2020
March, 2020 MonthYear to Date 25% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Electric Division
Customer Revenue$ 1,885,496$ 1,853,310$ 32,1871.7%$ 5,774,820$ 6,001,484$ (226,664) (3.8%)$ 25,627,44822.5%
Sales for Resale$ 164,788$ 196,708 $ (31,920)(16.2%)$ 466,332$ 647,437$ (181,105) (28.0%)$ 3,007,25015.5%
Other Revenues$ 5,807 $ 14,798$ (8,991) (60.8%)$ 153,539$ 55,210$ 98,329178.1%$ 179,49985.5%
Interest Income$ 26,632$ 26,992$ (360)(1.3%)$ 85,551 $ 67,622$ 17,92926.5%$ 208,45641.0%
TOTAL REVENUES$ 2,082,724$ 2,091,807$ (9,084) (0.4%)$ 6,480,242$ 6,771,753$ (291,511) (4.3%)$ 29,022,65322.3%
Salaries & Benefits$ 385,051$ 368,622 $ 16,4294.5%$ 1,209,372$ 1,179,538$ 29,8342.5%$ 5,074,75923.8%
Purchased Power$ 980,083$ 1,025,202$ (45,120)(4.4%)$ 3,201,247$ 3,567,650$ (366,403) (10.3%)$ 13,480,33223.7%
Transmission$ 164,296$ 277,538 $ (113,242)(40.8%)$ 428,535$ 613,635$ (185,100) (30.2%)$ 2,680,00016.0%
Generator Fuel/Chem.$ 17,792$ 41,327$ (23,535)(56.9%)$ 33,393 $ 77,234$ (43,841) (56.8%)$ 825,8754.0%
Depreciation$ 241,667$ 241,667 $ -0.0%$ 725,000$ 725,000$ -0.0%$ 2,900,00025.0%
Transfers (Elect./City)$ 163,236$ 147,172 $ 16,06410.9%$ 489,707$ 441,515$ 48,19110.9%$ 1,958,82625.0%
Operating Expense$ 94,401$ 108,912 $ (14,511)(13.3%)$ 331,494$ 363,449$ (31,955) (8.8%)$ 1,654,94320.0%
Debt Interest$ 44,471$ 46,555$ (2,083) (4.5%)$ 133,414$ 139,664$ (6,250)(4.5%)$ 533,65725.0%
TOTAL EXPENSES$ 2,090,997$ 2,256,995$ (165,998)(7.4%)$ 6,552,161$ 7,107,685$ (555,524) (7.8%)$ 29,108,39222.5%
NET PROFIT/(LOSS)$ (8,273)$ (165,187)$ 156,914 (95.0%)$ (71,919)$ (335,932)$ 264,013(78.6%)$ (85,739)83.9%
March, 2020 MonthYear to Date 25% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Electric Division
Residential3,877,9903,892,722 (14,732) (0.38%)12,102,57612,381,927 (279,351) (2.26%) 51,590,88923.5%
All Electric243,874265,522 (21,648) (8.15%)906,0021,005,829 (99,827) (9.92%) 2,545,49735.6%
Small General1,445,2791,550,513 (105,234)(6.79%)4,667,4374,876,480 (209,043) (4.29%) 18,956,24824.6%
Large General6,308,5106,065,000 243,510 4.02%18,502,67019,234,380 (731,710) (3.80%) 79,933,58323.1%
Industrial10,144,0008,956,000 1,188,00013.26%28,649,00027,525,000 1,124,000 4.08% 129,279,66622.2%
Total KWH Sold 22,019,653 20,729,757 1,289,8966.22% 64,827,685 65,023,616 (195,931)(0.30%) 282,305,88323.0%
Financial/Operating Ratios
MarchMarchYTD YTD 2020HUC
20202019Change20202019ChangeBudgetTarget
Gross Margin %29.2%22.0%7.2%27.4%24.1%3.3%28.7%24% - 28%
Operating Income Per Revenue $ (%)0.2%-7.1%7.3%-2.3%-4.1%1.7%0.8%0%-5%
Net Income Per Revenue $ (%):-0.4%-7.9%7.5%-1.1%-5.0%3.9%-0.3%0%-5%
Customer Revenue per KWH:$0.0840$0.0876-$0.0036$0.0885$0.0917-$0.0032$0.0903$0.0903
Total Power Supply Exp. per KWH:$0.0659$0.0777-$0.0117$0.0702$0.0781-$0.0079$0.0728$0.0728
Notes/Graphs:
Net Loss decreased by $156,914 despite having consistent revenues. This is due mostly to lower purchased power and a large drop in transmission.
Usage was up but revenue did not increase proportionately that same amount because there was NO power cost adjustment added for the first time
since May 2018.
Sales for Resale of $164,788 consisted of $15,288 in market sales, $136,000 in capacity sales to SMMPA and $13,500 in capacity sales to AEP. March 2019 Sales for
Resale of $196,708 consisted of $9,109 in market sales, $36,400 in monthly tolling fees from Transalta, $35,199 in Transalta energy sales, and $116,000 in capacity
sales to SMMPA. March 2018 Sales for Resale of $149,520 consisted of $6,297 in market sales, $35,600 in Transalta tolling fees, $11,623 in Transalta energy sales,
and $96,000 SMMPA capacity sales.
Overall Purchased Power decreased by $45,120. MRES purchases increased by $15 and market purchases/MISO costs decreased by $45,135.
There was no power cost adjustment for March leaving the total at $249,141 YTD.
Last year's power cost adjustment for March 2019 generated $51,482 in additional revenue for the month and $455,158 YTD.
HUTCHINSON UTILITIES COMMISSION
GAS DIVISION
FINANCIAL REPORT FOR MARCH, 2020
March, 2020 MonthYear to Date 25% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Gas Division
Customer Revenue$ 1,060,349$ 1,275,872$ (215,523)(16.9%)$ 3,822,865 $ 4,535,231$ (712,366)(15.7%)$ 10,191,66837.5%
Transportation$ 82,161$ 81,147 $ 1,0141.2%$ 247,582$ 245,961 $ 1,6210.7%$ 898,640 27.6%
Electric Div. Transfer$ 55,440$ 54,982 $ 4580.8%$ 166,321$ 164,946 $ 1,3750.8%$ 665,283 25.0%
Other Revenues$ 24,004$ 30,003 $ (5,999)(20.0%)$ 52,371$ 82,635$ (30,264)(36.6%)$ 286,708 18.3%
Interest Income$ 23,844$ 24,204 $ (360)(1.5%)$ 77,187$ 58,493$ 18,694 32.0%$ 175,000 44.1%
TOTAL REVENUES$ 1,245,797$ 1,466,208$ (220,410)(15.0%)$ 4,366,326 $ 5,087,266$ (720,940)(14.2%)$ 12,217,29935.7%
Salaries & Benefits$ 124,347$ 129,386$ (5,039)(3.9%)$ 407,840$ 408,605 $ (765)(0.2%)$ 1,872,12121.8%
Purchased Gas$ 617,986$ 747,757$ (129,771)(17.4%)$ 2,210,002 $ 2,668,072$ (458,069)(17.2%)$ 5,772,14538.3%
Operating Expense$ 93,587$ 67,217 $ 26,37039.2%$ 233,872$ 202,336 $ 31,536 15.6%$ 950,370 24.6%
Depreciation$ 85,417$ 85,417 $ -0.0%$ 256,250$ 256,250 $ -0.0%$ 1,025,00025.0%
Transfers (City)$ 47,807$ 41,262 $ 6,54515.9%$ 143,415$ 123,786 $ 19,629 15.9%$ 573,649 25.0%
Debt Interest$ 45,071$ 50,779 $ (5,708)0.0%$ 135,213$ 152,338 $ (17,125)(11.2%)$ 540,850 25.0%
TOTAL EXPENSES$ 1,014,214$ 1,121,817$ (107,604)(9.6%)$ 3,386,592 $ 3,811,387$ (424,794)(11.1%)$ 10,734,13531.5%
NET PROFIT/(LOSS)$ 231,584$ 344,390$ (112,807)(32.8%)$ 979,733$ 1,275,879$ (296,146)(23.2%)$ 1,483,16466.1%
March, 2020 MonthYear to Date 25% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Gas Division
Residential48,066,95559,999,023 (11,932,068)(19.89%)191,381,214225,439,876 (34,058,662)(15.11%) 422,479,00045.3%
Commercial34,295,85143,480,571 (9,184,720)(21.12%)140,318,443160,356,816 (20,038,373)(12.50%) 331,731,00042.3%
Industrial86,047,80589,367,378 (3,319,573)(3.71%)290,118,282298,800,967 (8,682,685)(2.91%) 803,079,00036.1%
Total CF Sold 168,410,611 192,846,972 (24,436,361)(12.67%) 621,817,939 684,597,659 (62,779,720)(9.17%) 1,557,289,00039.9%
Financial/Operating Ratios
MarchMarchYTD YTD 2020HUC
20202019Change20202019ChangeBudgetTarget
Gross Margin %46.8%46.3%0.6%46.4%45.4%1.1%49.0%37%-42%
Operating Income Per Revenue $ (%)19.1%24.5%-5.4%23.5%26.3%-2.8%13.8%11%-16%
Net Income Per Revenue $ (%):19.3%24.4%-5.1%23.1%25.8%-2.7%12.6%6%-11%
Contracted Customer Rev. per CF:$0.0036$0.0042-$0.0006$0.0037$0.0043-$0.0006$0.0040$0.0040
Customer Revenue per CF:$0.0088$0.0085$0.0003$0.0081$0.0083-$0.0002$0.0089$0.0089
Total Power Supply Exp. per CF:$0.0038$0.0040($0.0002)$0.0037$0.0040($0.0003)$0.0039$0.0039
Notes/Graphs:
Gas usage was down from the prior year due to a warmer March compared to 2019. The decrease in usage led to a drop of $112,807 in Net Profit.
Heating degree days were down around 25% again this month compared to 2019. Overall heating degree days are down 16% for the 1st quarter.
March's fuel cost credit adjustment was $.6118/MCF totalling $53,733 for the month and $352,349 YTD.
March 2019 credits totalled $95,527 for the month and $388,102 YTD.
HUTCHINSONUTILITIESCOMMISSION
BALANCESHEET-CONSOLIDATED
MARCH 31, 2020
ElectricGasTotalTotal Net Change
DivisionDivision20202019Total(YTD)
Current Assets
Cash 5,856,445.80 10,342,240.09 16,198,685.89 17,853,458.74 (1,654,772.85)
Petty Cash 680.00 170.00 850.00 850.00 -
Capital Expenditures - Five Yr. CIP 2,750,000.00 700,000.00 3,450,000.00 3,450,000.00 -
Payment in Lieu of Taxes 1,293,543.00 573,649.00 1,867,192.00 1,601,424.00 265,768.00
Rate Stabilization - Electric 454,424.89 - 454,424.89 372,736.68 81,688.21
Rate Stabilization - Gas - 651,306.61 651,306.61 651,306.61 -
Catastrophic Funds 400,000.00 100,000.00 500,000.00 500,000.00 -
Bond Interest Payment 2017 892,885.41 - 892,885.41 894,552.03 (1,666.62)
Bond Interest Payment 2012 - 665,283.32 665,283.32 657,170.83 8,112.49
Debt Service Reserve Funds 522,335.64 2,188,694.02 2,711,029.66 2,711,029.66 -
Total Current Assets 12,170,314.74 1 5,221,343.04 27,391,657.78 2 8,692,528.55 (1,300,870.77)
Receivables
Accounts (net of uncollectible allowances) 1,989,881.43 1,208,052.64 3,197,934.07 3,458,362.62 (260,428.55)
Interest 57,982.32 57,982.32 115,964.64 47,264.58 68,700.06
Total Receivables 2,047,863.75 1 ,266,034.96 3,313,898.71 3 ,505,627.20 (191,728.49)
Other Assets
1,453,313.08 453,032.97 1,678,830.42
Inventory 1,906,346.05 227,515.63
177,023.52 22,664.59 132,601.10
Prepaid Expenses 199,688.11 67,087.01
93,968.95 -
Sales Tax Receivable 93,968.95 39,574.41 54,394.54
Deferred Outflows - Electric 219,249.00 -
219,249.00 494,053.00 (274,804.00)
Deferred Outflows - Gas - 73,083.00
73,083.00 164,685.00 (91,602.00)
1,943,554.55 5 48,780.56 2,492,335.11 2 ,509,743.93 (17,408.82)
Total Other Assets
Total Current Assets 16,161,733.04 1 7,036,158.56 33,197,891.60 3 4,707,899.68 (1,510,008.08)
Capital Assets
Land & Land Rights 690,368.40 3,899,918.60 4,590,287.00 4,590,287.00 -
Depreciable Capital Assets 91,541,416.78 42,001,576.49 133,542,993.27 131,888,336.69 1,654,656.58
Accumulated Depreciation (58,625,382.27) (17,421,136.86) (76,046,519.13) (72,239,040.42) (3,807,478.71)
Construction - Work in Progress 15,941,732.70 253,442.38 16,195,175.08 14,037,736.61 2,157,438.47
Total Net Capital Assets 49,548,135.61 2 8,733,800.61 78,281,936.22 7 8,277,319.88 4,616.34
Total Assets 6 5,709,868.65 4 5,769,959.17 1 11,479,827.82 1 12,985,219.56 ( 1,505,391.74)
HUTCHINSONUTILITIESCOMMISSION
BALANCESHEET-CONSOLIDATED
MARCH 31, 2020
ElectricGasTotalTotal Net Change
DivisionDivision20202019Total(YTD)
Current Liabilities
Current Portion of Long-term Debt
Bonds Payable 645,000.00 1,455,000.00 2,100,000.00 1,995,000.00 105,000.00
Bond Premium - 185,608.32 185,608.32 185,608.32 -
Accounts Payable 1,621,338.12 879,023.23 2,500,361.35 3,731,425.63 (1,231,064.28)
Accrued Expenses
Accrued Interest 177,885.41 180,283.32 358,168.73 389,335.41 (31,166.68)
Accrued Payroll 90,258.86 30,373.95 120,632.81 111,502.47 9,130.34
Total Current Liabilities 2,534,482.39 2 ,730,288.82 5,264,771.21 6 ,412,871.83 (1,148,100.62)
Long-Term Liabilities
Noncurrent Portion of Long-term Debt
2017 Bonds 15,405,000.00 - 15,405,000.00 16,050,000.00 (645,000.00)
2012 Bonds - 11,075,000.00 11,075,000.00 12,530,000.00 (1,455,000.00)
Bond Premium 2012 591,072.96 1,051,780.11 1,642,853.07 1,861,918.35 (219,065.28)
Pension Liability - Electric 2,686,985.00 - 2,686,985.00 2,700,290.00 (13,305.00)
Pension Liability - Electric OPEB 76,502.00 - 76,502.00 72,192.00 4,310.00
Pension Liability - Nat Gas - 895,662.00 895,662.00 900,097.00 (4,435.00)
Pension Liability - Nat Gas OPEB - 25,501.00 25,501.00 24,064.00 1,437.00
Accrued Vacation Payable 380,134.01 146,202.28 526,336.29 477,451.52 48,884.77
Accrued Severance 81,360.39 33,739.79 115,100.18 106,630.34 8,469.84
Deferred Outflows - Electric 550,772.00 - 550,772.00 804,800.00 (254,028.00)
Deferred Outflows - Nat Gas - 183,591.00 183,591.00 268,267.00 (84,676.00)
Total Long-Term Liabilities 19,771,826.36 1 3,411,476.18 33,183,302.54 3 5,795,710.21 (2,612,407.67)
Net Position
Retained Earnings 43,403,559.90 29,628,194.17 73,031,754.07 70,776,637.52 2,255,116.55
Total Net Position 43,403,559.90 2 9,628,194.17 73,031,754.07 7 0,776,637.52 2,255,116.55
Total Liabilities and Net Position 65,709,868.65 4 5,769,959.17 111,479,827.82 1 12,985,219.56 (1,505,391.74)
Hutchinson Utilities Commission
Cash-Designations Report, Combined
3/31/2020
Change in
Financial Annual Balance, Balance, Cash/Reserve
InstitutionCurrent Interest RateInterestMarch 2020 February 2020 Position
Savings, Checking, Investmentsvariesvariesvaries 27,391,657.78 27,308,891.61 82,766.17
Total Operating Funds 27,391,657.78 27,308,891.61 82,766.17
Combined Division - Total Funds 27,391,657.78 27,308,891.61 82,766.17
Restricted Funds:
Debt Reserve RequirementsBond Covenants - sinking fund 1,558,168.73 1,293,626.53 264,542.20
Debt Reserve RequirementsBond Covenants -1 year Max. P & I 2,711,029.66 2,711,029.66 -
Total Restricted Funds 4,269,198.39 4,004,656.19 264,542.20
Excess Reserves Less Restrictions, Combined 23,122,459.39 23,304,235.42 (181,776.03)
Designated Funds:
Operating ReserveMin 60 days of 2020 Operating Bud. 5,981,005.00 5,981,005.00 -
Rate Stabalization Funds 1,105,731.50 1,024,043.29 81,688.21
PILOT FundsCharter (Formula Only) 1,867,192.00 1,867,192.00 -
Catastrophic FundsRisk Mitigation Amount 500,000.00 500,000.00 -
Capital Reserves5 Year CIP ( 2020-2024 Fleet & Infrastructure Maintenance) 3,450,000.00 3,450,000.00 -
Total Designated Funds 12,903,928.50 12,822,240.29 81,688.21
Excess Reserves Less Restrictions & Designations, Combined 10,218,530.89 10,481,995.13 (263,464.24)
Financial/Operating Ratios
YEYEYEYEYTDHUC
20162017201820192020Target
Debt to Asset32.2%40.2%37.7%35.1%34.5%<50%
Current Ratio3.063.363.935.195.44>2.0
RONA2.17%1.82%3.43%2.26%0.89%>0%
Notes/Graphs:
Change in Cash Balance (From 12/31/14 to 3/31/2020)
Month End ElectricElec. ChangeNatural GasGas Change TotalTotal Change
3/31/2020 12,170,315 15,221,343 27,391,658
12/31/2019 12,124,142 46,173 13,837,040 1,384,303 25,961,181 1,430,476
12/31/2018 15,559,867 (3,435,725) 12,335,998 1,501,042 27,895,864 (1,934,683)
12/31/2017 23,213,245 (7,653,378) 10,702,689 1,633,309 33,915,934 (6,020,070)
12/31/2016 8,612,801 14,600,444 9,500,074 1,202,615 18,112,875 15,803,059
12/31/2015 6,170,790 2,442,011 9,037,373 462,701 15,208,163 2,904,712
12/31/2014 3,598,821 2,571,969 6,765,165 2,272,208 10,363,986 4,844,177
* 2017's Signifcant increase in cash balance is due to issuing bonds for the generator project.
Hutchinson Utilities Commission
Cash-Designations Report, Electric
3/31/2020
Change in
Financial Annual Balance, Balance, Cash/Reserve
InstitutionInterestMarch 2020 February 2020 Position
Current Interest Rate
Operating Funds:
Savings, Checking, Investmentsvariesvariesvaries 27,391,657.78 27,308,891.61 82,766.17
Total HUC Operating Funds 27,391,657.78 27,308,891.61 82,766.17
Electric Division - Total Funds 12,170,314.74 12,434,316.21 (264,001.47)
Restricted Funds:
Debt Restricted RequirementsBond Covenants - sinking fund 892,885.41 794,664.05 98,221.36
Debt Restricted RequirementsBond Covenants -1 year Max. P & I 522,335.64 522,335.64 -
Total Restricted Funds 1,415,221.05 1,316,999.69 98,221.36
Excess Reserves Less Restrictions, Electric 10,755,093.69 11,117,316.52 (362,222.83)
Designated Funds:
Operating ReserveMin 60 days of 2020 Operating Bud. 4,367,899.00 4,367,899.00 -
Rate Stabalization Funds$400K-$1.2K 454,424.89 372,736.68 81,688.21
PILOT FundsCharter (Formula Only) 1,293,543.00 1,293,543.00 -
Catastrophic FundsRisk Mitigation Amount 400,000.00 400,000.00 -
Capital Reserves5 Year CIP ( 2020-2024 Fleet & Infrastructure Maintenance) 2,750,000.00 2,750,000.00 -
Total Designated Funds 9,265,866.89 9,184,178.68 81,688.21
Excess Reserves Less Restrictions & Designations, Electric 1,489,226.80 1,933,137.84 (443,911.04)
Financial/Operating Ratios
YEYEYEYEYTDAPPA RatioHUC
201620172018201920205K-10K Cust.Target
Debt to Asset Ratio (* w/Gen.)16.7%35.4%35.7%34.4%33.9%50.1%<50%
Current Ratio3.574.363.635.415.732.43>2.0
RONA-0.4%-0.6%-0.3%-0.5%-0.1%NA>0%
Notes/Graphs:
Hutchinson Utilities Commission
Cash-Designations Report, Gas
3/31/2020
Change in
Financial Annual Balance, Balance, Cash/Reserve
InstitutionCurrent Interest RateInterestMarch 2020 February 2020 Position
Operating Funds:
Savings, Checking, Investmentsvariesvariesvaries27,391,657.7827,308,891.6182,766.17
Total HUC Operating Funds 27,391,657.78 27,308,891.61 82,766.17
Gas Division - Total Funds 15,221,343.04 14,874,575.40 346,767.64
Restricted Funds:
Debt Restricted RequirementsBond Covenants - sinking fund 665,283.32 498,962.48 166,320.84
Debt Restricted RequirementsBond Covenants -1 year Max. P & I 2,188,694.02 2,188,694.02 -
Total Restricted Funds 2,853,977.34 2,687,656.50 166,320.84
Excess Reserves Less Restrictions, Gas 12,367,365.70 12,186,918.90 180,446.80
Designated Funds:
Operating ReserveMin 60 days of 2020 Operating Bud. 1,613,106.00 1,613,106.00 -
Rate Stabalization Funds$200K-$600K 651,306.61 651,306.61 -
PILOT FundsCharter (Formula Only) 573,649.00 573,649.00 -
Catastrophic FundsRisk Mitigation Amount 100,000.00 100,000.00 -
Capital Reserves5 Year CIP ( 2020-2024 Fleet & Infrastructure Maintenance) 700,000.00 700,000.00 -
Total Designated Funds 3,638,061.61 3,638,061.61 -
Excess Reserves Less Restrictions & Designations, Gas 8,729,304.09 8,548,857.29 180,446.80
Financial/Operating Ratios
YEYEYEYEYTDHUC
20162017201820192020APGA RatioTarget
Debt to Asset51.2%47.6%40.7%36.2%35.3%TBD<50%
Current Ratio2.592.744.334.985.17TBD>2.0
RONA5.6%5.0%8.3%6.6%2.4%TBD>0%
Notes/Graphs:
HUTCHINSON UTILITIES COMMISSION
Investment Report
For the Month Ended March 31, 2020
InterestCurrentDate ofDate ofParCurrentPurchaseUnrealizedPremiumNext
InstitutionDescriptionRateYTMPurchaseMaturityValueValueAmountGain/(Loss)(Discount)Call Date
Wells FargoMoney Market0.380%0.380%NANA - 65,261.72 - - -N/A
Wells FargoCD's1.700%1.700%02/21/202002/22/2022 245,000.00 246,646.40 245,000.00 1,646.40 -N/A
Wells FargoCD's1.300%1.300%03/31/202009/30/2021 245,000.00 244,997.55 245,000.00 (2.45) -N/A
Wells FargoCD's1.900%1.900%08/21/201908/23/2021 174,000.00 175,470.30 174,000.00 1,470.30 -N/A
Wells FargoCD's2.500%2.500%04/02/201904/05/2021 245,000.00 248,072.30 245,000.00 3,072.30 -N/A
Wells FargoCD's2.000%2.000%04/07/201610/07/2021 245,000.00 245,046.55 245,000.00 46.55 -04/07/2020
Wells FargoCD's2.000%2.000%10/07/201912/31/2020 245,000.00 245,041.65 245,000.00 41.65 -04/07/2020
Wells FargoCD's2.000%2.000%01/30/202001/30/2024 245,000.00 245,791.35 245,000.00 791.35 -07/30/2020
Wells FargoCD's2.000%2.000%08/29/202008/22/2022 200,000.00 202,596.00 200,000.00 2,596.00 -09/29/2020
Wells FargoCD's1.700%1.700%12/30/201907/08/2020 60,000.00 60,113.40 60,000.00 113.40 -N/A
Wells FargoCD's2.000%2.000%01/10/202001/24/2025 245,000.00 245,289.10 245,000.00 289.10 -04/10/2020
Wells FargoCD's2.100%2.100%01/30/202007/30/2024 245,000.00 245,884.45 245,000.00 884.45 -07/30/2020
Wells FargoCD's2.000%2.000%01/29/202001/29/2024 245,000.00 245,766.85 245,000.00 766.85 -07/29/2020
Wells FargoCD's1.700%1.700%01/31/202005/03/2021 245,000.00 246,168.65 245,000.00 1,168.65 -N/A
Wells FargoCD's1.750%1.750%01/29/202007/29/2021 245,000.00 246,506.75 245,000.00 1,506.75 -N/A
Broker Total25.4% 3,129,000.00 3,208,653.02 3,129,000.00 14,391.30 -
Cetera Investment ServicesMoney Market0.100%0.100%N/AN/A - 69,076.65 - - -N/A
Cetera Investment ServicesMunicipal Bonds2.995%2.073%03/07/201607/01/2020 250,000.00 249,767.50 260,835.21 (11,067.71) 10,835.21N/A
Cetera Investment ServicesMunicipal Bonds2.750%1.881%03/07/201608/01/2020 250,000.00 250,707.50 259,820.00 (9,112.50) 9,820.00N/A
Cetera Investment ServicesMunicipal Bonds2.300%1.715%12/11/201710/01/2020 100,000.00 100,495.00 101,595.00 (1,100.00) 1,595.00N/A
Cetera Investment ServicesMunicipal Bonds2.875%2.121%04/29/201609/01/2021 250,000.00 255,310.00 259,467.50 (4,157.50) 9,467.50N/A
Cetera Investment ServicesMunicipal Bonds3.751%2.399%04/29/201611/01/2021 250,000.00 257,427.50 267,330.00 (9,902.50) 17,330.00N/A
Cetera Investment ServicesMunicipal Bonds3.139%2.190%12/11/201709/01/2021 300,000.00 307,305.00 310,116.00 (2,811.00) 10,116.00N/A
Cetera Investment ServicesMunicipal Bonds3.436%3.436%12/20/201812/15/2021 50,000.00 48,536.00 45,155.00 3,381.00 (4,845.00) N/A
Cetera Investment ServicesMunicipal Bonds2.655%2.208%12/11/201703/01/2022 300,000.00 309,003.00 305,314.92 3,688.08 5,314.92N/A
Cetera Investment ServicesMunicipal Bonds3.000%3.118%12/20/201808/01/2022 50,000.00 51,955.50 50,377.67 1,577.83 377.67N/A
Cetera Investment ServicesMunicipal Bonds3.633%3.116%12/20/201809/01/2022 250,000.00 263,052.50 257,217.48 5,835.02 7,217.48N/A
Cetera Investment ServicesMunicipal Bonds3.240%3.240%11/17/201702/15/2023 80,000.00 74,548.80 69,633.48 4,915.32 (10,366.52) N/A
Cetera Investment ServicesMunicipal Bonds3.650%3.004%12/20/201802/01/2023 250,000.00 264,602.50 256,165.00 8,437.50 6,165.00N/A
Cetera Investment ServicesMunicipal Bonds3.075%3.236%12/20/201806/01/2023 50,000.00 52,543.00 49,746.15 2,796.85 (253.85)
N/A
Cetera Investment ServicesMunicipal Bonds2.500%3.181%12/20/201808/01/2023 35,000.00 36,247.75 34,320.05 1,927.70 (679.95)
N/A
Cetera Investment ServicesMunicipal Bonds3.400%3.148%12/20/201811/01/2023 125,000.00 128,056.25 126,376.25 1,680.00 1,376.25N/A
Cetera Investment ServicesMunicipal Bonds3.400%3.148%12/20/201811/01/2023 65,000.00 67,993.25 65,715.65 2,277.60 715.65N/A
Cetera Investment ServicesMunicipal Bonds1.862%1.862%01/22/202011/01/2023 150,000.00 140,584.50 139,866.00 718.50 (10,134.00) N/A
Cetera Investment ServicesMunicipal Bonds5.290%2.724%04/18/201906/01/2023 260,000.00 288,160.60 291,059.96 (2,899.36) 31,059.96N/A
Cetera Investment ServicesMunicipal Bonds2.854%3.173%12/20/201802/01/2024 100,000.00 102,956.00 99,605.96 3,350.04 (394.04) N/A
Cetera Investment ServicesMunicipal Bonds2.977%3.246%12/20/201803/15/2024 250,000.00 257,777.50 248,743.99 9,033.51 (1,256.01) N/A
Cetera Investment ServicesMunicipal Bonds1.940%1.821%01/13/202005/01/2024 65,000.00 65,212.55 65,570.70 (358.15) 570.70N/A
Cetera Investment ServicesMunicipal Bonds2.528%1.918%01/13/202012/01/2024 100,000.00 104,003.00 102,999.53 1,003.47 2,999.53N/A
Cetera Investment ServicesMunicipal Bonds3.922%3.429%12/20/201812/01/2024 204,000.00 221,629.68 257,122.49 (35,492.81) 53,122.49N/A
Cetera Investment ServicesMunicipal Bonds5.742%3.658%04/11/201908/01/2024 430,000.00 476,117.50 555,382.50 (79,265.00) 125,382.50N/A
Cetera Investment ServicesMunicipal Bonds4.400%3.221%04/11/201907/01/2025 500,000.00 548,060.00 539,101.11 8,958.89 39,101.1107/01/2023
Cetera Investment ServicesMunicipal Bonds5.640%3.007%04/18/201908/15/2025 205,000.00 179,288.90 169,737.95 9,550.95 (35,262.05) N/A
Cetera Investment ServicesMunicipal Bonds3.743%2.740%04/18/201909/15/2025 215,000.00 230,940.10 228,334.53 2,605.57 13,334.53N/A
Cetera Investment ServicesMunicipal Bonds3.379%1.934%08/19/201910/01/2025 310,000.00 335,134.80 339,739.18 (4,604.38) 29,739.18N/A
Cetera Investment ServicesMunicipal Bonds4.250%3.258%04/11/201901/01/2026 500,000.00 546,425.00 529,769.03 16,655.97 29,769.03N/A
Cetera Investment ServicesMunicipal Bonds6.690%3.356%04/18/201904/15/2026 60,000.00 52,697.40 47,545.20 5,152.20 (12,454.80) N/A
Cetera Investment ServicesMunicipal Bonds3.250%2.903%04/18/201908/01/2026 500,000.00 530,270.00 514,790.69 15,479.31 14,790.69N/A
Cetera Investment ServicesMunicipal Bonds2.150%2.203%07/01/201912/01/2026 40,000.00 41,046.80 40,150.64 896.16 150.64N/A
Cetera Investment ServicesMunicipal Bonds2.350%2.191%07/01/201912/01/2026 500,000.00 521,670.00 505,385.00 16,285.00 5,385.00N/A
Cetera Investment ServicesMunicipal Bonds2.375%1.816%09/04/201912/01/2026 90,000.00 92,434.50 93,395.70 (961.20) 3,395.70N/A
Cetera Investment ServicesMunicipal Bonds3.000%1.991%08/19/201902/01/2027 50,000.00 54,023.50 53,551.00 472.50 3,551.00N/A
Cetera Investment ServicesMunicipal Bonds3.150%2.034%08/19/201903/15/2027 100,000.00 108,821.00 109,138.50 (317.50) 9,138.50N/A
Cetera Investment ServicesMunicipal Bonds3.332%3.120%04/18/201904/15/2027 500,000.00 530,950.00 507,783.94 23,166.06 7,783.94N/A
Cetera Investment ServicesMunicipal Bonds3.553%2.289%08/19/201905/01/2027 55,000.00 58,643.75 60,468.04 (1,824.29) 5,468.0405/01/2026
Cetera Investment ServicesMunicipal Bonds3.865%2.470%08/19/201905/01/2027 55,000.00 62,322.70 60,986.48 1,336.22 5,986.4805/01/2025
Cetera Investment ServicesMunicipal Bonds2.817%2.817%09/25/201910/01/2027 35,000.00 27,946.80 27,969.55 (22.75) (7,030.45)
05/01/2025
Cetera Investment ServicesMunicipal Bonds3.230%1.828%08/19/201905/15/2027 145,000.00 158,411.05 160,827.31 (2,416.26) 15,827.31N/A
Cetera Investment ServicesMunicipal Bonds3.270%2.141%08/19/201903/15/2028 155,000.00 163,923.35 60,468.04 103,455.31 (94,531.96) 09/15/2027
Cetera Investment ServicesMunicipal Bonds2.974%2.574%11/07/201904/01/2028 75,000.00 79,329.75 77,253.00 2,076.75 2,253.00N/A
Cetera Investment ServicesMunicipal Bonds3.140%2.004%08/19/201908/01/2028 500,000.00 539,405.00 547,105.00 (7,700.00) 47,105.0008/01/2027
Cetera Investment ServicesMunicipal Bonds3.000%1.942%08/19/201906/01/2029 115,000.00 125,980.20 125,961.80 18.40 10,961.80N/A
Broker Total74.6% 8,919,000.00 9,430,793.63 9,278,998.18 82,718.80 359,998.18
TOTAL INVESTMENTS100.0%$ 12,048,000.00$ 12,639,446.65$ 12,407,998.18$ 97,110.10$ 359,998.18
PORTFOLIO BY PRODUCT TYPEMATURITY SCHEDULE
3/31/2020% of2/29/2020% ofMonthlyMaturityCurrent Value%
Product TypeTotal ValueTotalTotal ValueTotalChangeLess than 1 year$1,040,463.428.2%
Money Market$134,338.371.1%$96,968.100.8%$37,370.271 - 2 years2,830,490.0022.4%
CD's3,143,391.3024.9%3,138,111.1424.7%5,280.162 - 3 years856,755.306.8%
Government Bonds0.000.0%0.000.0%0.003 - 4 years 1,565,877.0512.4%
Municipal Bonds9,361,716.9874.1%9,480,860.2774.6%(119,143.29)4 - 5 years1,358,136.2810.7%
TOTAL$12,639,446.65100.0%$12,715,939.51100.0%($76,492.86)5+ years4,987,724.6039.5%
TOTAL$12,639,446.65100.0%
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ELECTRIC DIVISION
Operating Revenue
March 2020
CLASSAMOUNTKWH$/KWH
Street Lights$0.7113$0.05462
Electric Residential Service$393,781.253,877,990$0.10154
All Electric Residential Service$23,332.29243,874$0.09567
Electric Small General Service$140,162.661,445,279$0.09698
Electric Large General Service$558,121.086,308,510$0.08847
Electric Large Industrial Service$734,670.4010,144,000$0.07242
Total$1,850,068.39 22,019,666$0.08402
Power Adjustment$0.00000
Rate Without Power Adjustment$0.08402
Electric Division Year-to-Date
2020 $ Amount2019 $ Amount2020 KWH/102019 KWH/10
7,200,000
7,000,000
6,800,000
6,600,000
6,400,000
6,200,000
6,000,000
5,800,000
5,600,000
5,400,000
5,200,000
5,000,000
4,800,000
4,600,000
4,400,000
4,200,000
4,000,000
3,800,000
3,600,000
3,400,000
3,200,000
3,000,000
2,800,000
2,600,000
2,400,000
2,200,000
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
Street LightsResidentialAll Elec.Small Gen.Large Gen.LargeFor Resale Total
Resid.Srv.Srv.Industrial
NOTE: Sales for resale includes capacity sales, market sales and Transalta sales.
NATURAL GAS DIVISION
Operating Revenue
MARCH 2020
CLASSAMOUNTMCF$/MCF
Residential$425,933.5648,067$8.86125
Commercial$295,818.9034,296$8.62546
Large Industrial$46,476.405,417$8.57973
Large Industrial Contracts$292,119.7280,631$3.62292
Total$1,060,348.58168,411$6.29620
Fuel Adjustment-$0.61000
Rate Without Fuel Adjustment$6.90620
Natural Gas Division Year-to-Date
2020 $ Amount2019 $ Amount2020 MCF2019 MCF
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Gas ResidentialGas CommercialLarge IndustrialLarge Industrial Total
Contracts
#KeepingYourLightsOn
Recognized for reliable
electric service in 2019
#CommunityPowered
Recognized by @PublicPowerOrg
AVERAGE #OUTAGE TIME
All U.S.
electric
utilities*
minutes
a year
13
minutes
a year
#PublicPower
Hutchinson
=
Utilities
Commission
Reliable
Power
* When there are NO major events
225 Michigan Street SE
H utchinson
Hutchinson, MN 55350-1905
U tilities
320-587-4746 | Fax 320-587-4721
www.hutchinsonutilities.com
C ommission
Putting All of Our Energy into Serving You
Contact: Tobias Sellier, American Public Power Association MediaRelations@PublicPower.org
Jeremy Carter, General Manger Hutchinson Utilities Commission 320-587-4746
HUTCHINSON UTILITIES COMMISSION RECOGNIZED
FOR RELIABLE ELECTRIC SERVICE TO THE COMMUNITY
Hutchinson, MN 4/20/20 Hutchinson Utilities Commission has received national recognition for
achieving exceptional electric reliability in 2019. The recognition comes from the American Public Power
Association, a trade group that represents more than 2,000 not-for-profit, community-owned electric
utilities.
The Association helps electric utilities track power outage and restoration data through its subscription-
based eReliability Tracker service and then compares the data to national statistics tracked by the U.S.
Energy Information Administration for all types of electric utilities.
Community-owned public power utilities have an excellent record when it comes to reliability said the
Senior Director of Energy and Environmental Services Alex Hofmann.
Nationwide, the average public power customer has their lights out for less than half the time, compared
to other types of utilities.
We are proud to receive this recognition. It is a testament to the hard work of all our staff to ensure that
the lights stay on for all our customers, Jeremy Carter, General Manager at Hutchinson Utilities
Commission.
The American Public Power Association has offered the RP3 designation for 15 years now. The
Association is the voice of not-for-profit, community-owned utilities that power 49 million people in
2,000 towns and cities nationwide. The Association advocates and advises on electricity policy,
technology, trends, training, and operations.
225 Michigan Street SE
H utchinson
Hutchinson, MN 55350-1905
U tilities
320-587-4746 | Fax 320-587-4721
www.hutchinsonutilities.com
C ommission
Putting All of Our Energy into Serving You
For information: Tobias Sellier, American Public Power Association, 202-467-2927
Jeremy Carter, Hutchinson Utilities Commission GM, 320-587-4745
HUTCHINSON UTILITIES COMMISSION HONORED WITH NATIONAL AWARD
FOR OUTSTANDING SAFETY PRACTICES
WASHINGTON, D.C., April 20, 2020 Hutchinson Utilities Commission has earned the American
safe operating practices in 2019. The utility
st
earned 1 Place award in the category for utilities with 76,591 worker-hours of annual worker exposure.
Brandon Wylie, Chair of the Safety Committee and Director of Training & Safety at
Electric Cities of Georgia,
Technical Conference, held in Kansas City, Missouri.
Strong safety programs are essential to ensuring that electric utility employees are informed and trained
on safe work proceduresWyliethat protecting the
safety of their employees is a top priority
More than 335 utilities entered the annual Safety Awards, which is the highest number of entrants in the
history of the program. Entrants were placed in categories according to their number of worker-hours and
ranked based on the most incident-free records during 2019. The incidence rate, used to judge entries, is
based on the number of work-related reportable injuries or illnesses and the number of worker-hours
during 2019, as defined by the Occupational Safety and Health Administration (OSHA).
is proud of its Jeremy Carter, General Manager of
Hutchinson Utilities CommissionThis award is a testament to the hard work that goes into ensuring that
our team members go home safe to their families every day
The Safety Awards have been held annually for the last 60 years. The American Public Power
Association is the voice of not-for-profit, community-owned utilities that power 2,000 towns and cities
nationwide.
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
Review Policies
Presenter: Agenda Item Type:
Jeremy Carter
Review Policies
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
As part of HUC's standard operating procedures, a continual policy review is practiced.
This month, the following policies were reviewed and no changes are recommended on
these policies at this time:
i. Section 4 of Exempt Handbook
ii. Section 4 of Non-Exempt Handbook
BOARD ACTION REQUESTED:
None
Fiscal Impact:
Included in current budget: Budget Change:
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
EXEMPT
SECTION 4 WAGE AND SALARY INFORMATION
P AY P ERIOD, P AYDAYS
All employees are paid every other Thursday for the two-week period ending the preceding Sunday
at 12:00 midnight. Should a payday fall on a holiday, paychecks/direct deposits will be available
the preceding day.
P AYROLL D EDUCTIONS
HUC is required to deduct federal and state income taxes, Social Security tax, and any court-
ordered deductions such as child support from paychecks/direct deposits. HUC is also required to
ssociation (PERA).
Other deductions may be made from a paycheck/direct deposit such as deferred compensation, and
consent.
O VERTIME
Exempt employees may earn compensatory time on an hour-for-hour basis for all hours worked in
excess of 40 hours per week. Exempt employees must use their compensatory time by December
31 of the year in which it is earned or it will be forfeited. Accrued compensatory time shall not be
paid out to exempt employees upon separation from employment.
T RAVEL E XPENSES
Business Related Vehicle Operation
Travel within the State shall be by HUC vehicle if possible.
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 shall be reimbursed for mileage at the current IRS mileage reimbursement
rate.
HUC is not liable for damage to personally owned vehicles used for HUC business.
HUC may request proof of insurance from employees who use personally owned vehicles
on HUC business.
Travel to and from events should be by the most direct route possible.
Employees are expected to return in a timely manner.
appropriate to drive, the employee shall follow the same rules as travel within the State.
Whether a HUC vehicle, or a personal vehicle is used, the employee is responsible for any traffic
or parking citations the employee receives while operating such vehicle on HUC business.
Employees who drive a HUC vehicle home may use the vehicle only for HUC business purposes.
Employees who are members of the Hutchinson Fire Department or Rescue Squad may use a 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 HUC at the time of the call. If the firefighter or rescue squad member is at HUC,
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 HUC. In the
circumstances of air travel, the following rules shall apply:
Commercial carriers shall be used.
Travel to and from the airports shall follow the Business Related Vehicle Operation
section.
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
Overnight Stays, Meals and Entertainment Expenses
Hotel reservations shall be made prior to the employee leaving for out of town travel. The
following items shall apply to overnight stays:
Manager.
In the event the employee is traveling on 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 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 shall 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 shall not be reimbursed by HUC.
An expense report shall also be filled out for all company travel 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
obtain an itemized receipt. The expense report shall be approved by your Director, Manager, or
Supervisor before submitting to the Financial Manager.
W ORKERS C OMPENSATION
An employee who is injured on the job or becomes ill due to job-related reasons is eligible for
worker
employee approximately 2/3 of the weekly gross wage or salary lost due to injury or illness and
HUC 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
compensation portion of the paycheck.
NON-EXEMPT
SECTION 4 WAGE AND SALARY INFORMATION
P AY P ERIOD, P AYDAYS
All employees are paid every other Thursday for the two-week period ending the preceding Sunday
at 12:00 midnight. Should a payday fall on a holiday, paychecks/direct deposits will be available
the preceding day.
P AYROLL D EDUCTIONS
HUC is required to deduct federal and state income taxes, Social Security tax, and any court-
ordered deductions such as child support from paychecks/direct deposits. HUC is also required to
ssociation (PERA).
Other deductions may be made from a paycheck/direct deposit such as union dues, deferred
compensation, and insurance premiums. These payroll deductions may be made only with the
O VERTIME
See Union Contract.
T RAVEL E XPENSES
Business Related Vehicle Operation
Travel within the State shall be by HUC vehicle if possible.
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.
HUC is not liable for damage to personally owned vehicles used for HUC business.
HUC may request proof of insurance from employees who use personally owned vehicles
on HUC business.
Travel to and from events should be by the most direct route possible.
Employees are expected to return in a timely manner.
appropriate to drive, the employee shall follow the same rules as travel within the State.
Whether a HUC vehicle, or a personal vehicle is used, the employee is responsible for any traffic
or parking citations the employee receives while operating such vehicle on HUC business.
Employees who drive a HUC vehicle home may use the vehicle only for HUC business purposes.
Employees who are members of the Hutchinson Fire Department or Rescue Squad may use a 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 HUC at the time of the call. If the firefighter or rescue squad member is at HUC,
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 HUC. In the
circumstances of air travel, the following rules shall apply:
Commercial carriers shall be used.
Travel to and from the airports shall follow the Business Related Vehicle Operation
section.
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
Overnight Stays and Meals
Hotel reservations shall be made prior to the employee leaving for out of town travel. The
following items shall apply to overnight stays:
Manager.
In the event the employee is traveling on 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 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 travel 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
obtain an itemized receipt. The expense report shall be approved by your Director, Manager, or
Supervisor before submitting to the Financial Manager.
W ORKERS C OMPENSATION
An employee who is injured on the job or becomes ill due to job-related reasons is eligible for
the employee approximately 2/3 of the weekly gross wage or salary lost due to injury or illness
and HUC 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 fr
compensation portion of the paycheck.
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
Approve Policy Changes
Presenter: Agenda Item Type:
Jeremy Carter
App Changes to Policies
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
As part of HUC's standard operating procedures, a continual policy review is
practiced. The following revisions to the policies below are recommended.
i. Compensation Plan; Exempt and Non-Exempt
BOARD ACTION REQUESTED:
Approve Policy Changes
Fiscal Impact:
Included in current budget: Budget Change:
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
EXEMPT
C OMPENSATION P LAN
The Hutchinson Utilities Commission (HUC) has considered the existing positions for HUC and
the current economic conditions.
For each position there shall be a title, job description, and a pay scale level assigned.
This plan covers all regular full-time, exempt positions/employees only.
Plan Objectives
To establish and maintain a compensation plan that enables HUC to be highly competitive
within our defined industry.
To lead or exceed the market in attracting and retaining qualified, reliable and motivated
employees who are committed to quality and excellence for those we serve.
To ensure, subject to the financial condition of HUC, that employees receive fair and equitable
To follow the principles of pay equity in establishing and maintaining pay relationships among
positions.
To ensure program flexibility necessary to meet changing economic, competitive,
technological, and regulatory conditions encountered by HUC.
To balance compensation and benefit needs with available resources.
Open Salary Range
HUC shall adopt an Open Salary Range compensation plan that will allow for maximum flexibility
since there are not defined or pre-
performance. The open salary range concept rewards good and exceptional performers and
advances employees to the market rate more quickly.
Allocation of New Positions
When a new position is created for which no appropriate description exists or when the duties of
an existing position are sufficiently changed so that no appropriate description exists, the
Commission, after recommendation of the General Manager/HR Customer/HR Manager, shall
cause an appropriate job description-specification to be written for said position.
Pay Scales
Pay scales will be adjusted on an annual basis in accordance with adjustments made in the
labor agreement.
Exempt Employees
Each position will have a nine-month probationary period. After satisfactory completion
of the probationary period, an increase may be granted as warranted by the annual
performance appraisal. Thereafter, consideration for increases will be given annually at the
first of the year. The General Manager reserves the discretion to adjust individual rates as
required. The Commission will determine any pay increase for the General Manager.
Consideration for market adjustment will be made each January 1.
The General Manager shall maintain the discretion to hire at any point based on the qualifications,
experience, market conditions or other relevant factors, to secure the best candidate for the
position.
Performance Evaluations
For all regular full-time employees, a performance appraisal or evaluation will be made on an
submitted in writing to the employee and the General Manager. All evaluations will be
forwarded to Human Resources the Customer/HR Manager for filing in the employee files.
Evaluations shall be based upon the performance of the individual in the position measured
against established job performance criteria. Such criteria may include level of knowledge,
skills, ability, quality of work, personal work traits, compliance with established HUC or
departmental rules and regulations or any other criteria that is indicative of performance.
The performance appraisal process is the application of performance standards to past
performance. In appraising an employee, these are the basic levels of performance:
5 Outstanding Performer Performance is exceptional in all areas and is recognizable as
being far superior to others.
4 Exceeds Expectations Job Requirements Results clearly exceed most positions
requirements. Performance is of high quality and is achieved on a consistent basis.
3 Solid Performer Meets Job Requirements Competent and dependable level of
performance. Meets performance standards of the job.
2 Needs Improvement Performance is deficient in certain area(s). Improvement is
necessary.
1 Unsatisfactory Results are generally unacceptable and require immediate improvement.
Results - ly have the following
effect on his/her salary per the following Merit Increase Guide below. The percent increase
given to an employee within a certain performance score range will be based on where the
Commission:
0 to 1.0 0%
1.1 to 1.99 Straight 1% increase
2.0 to 2.75 -1% of Union % increase
2.76 to 3.5 Union % increase
3.51 to 4.25 +1% of Union % increase
4.26 to 5.0 +2% of Union % increase
Performance Score: % Increase Range:
0 to 1.0 0% - 0%
1.1 to 2.0 0% - 2%
2.1 to 3.0 1% - 5%
3.1 to 4.0 2% - 6%
4.1 to 5.0 3% - 7%
Market Conditions
Notwithstanding any language to the contrary, HUC retains the right to deviate from the pay
plan when, in the sole judgment of the Commission, market conditions or other circumstances
dictate such a decision. Market conditions are defined as the availability of a particular
position.
Eligible employees include all non-represented employees except those who have been subject
to disciplinary action per the HUC Employee Handbook as follows:
An additional consequence of disciplinary action more severe than oral reprimand will be the
permanent loss of the January 1 market adjustment in the calendar year following such
disciplinary action. This will occur unless the Director in charge and the General Manager
decide otherwise.
Annual Market Adjustment Consideration
On an annual basis, a market survey will be reviewed. As a result of the current year
marketplace, an additional increase may be deemed necessary. The General Manager maintains
final approval responsibility for salary increases.
Any market adjustment on January 1 of any year shall be separate and apart from the individual
merit increases. In determining a recommendation for an annual market adjustment, the
General Manager shall consider, at least the following information:
1. U.S. and Minneapolis/St. Paul consumer-priced index changes (CPIU & CPIW)
2. Social Security calculation of cost of living increase
3. Unemployment rate
4. Employee turnover rate
5. Area wage survey
6. Legislative growth factor constraints
7. Bargaining Unit Increase
Modification of the Plan
HUC reserves the right to modify any or all of the components or to vary from any of the
components of the Compensation Plan at its discretion and at any time.
Review of the Plan
General Manager/HR Customer/HR Manager annual review
and maintain its Position Classification Plan. As deemed necessary, the General Manager/HR
Customer/HR Manager would recommend any changes to the Commission. It is further
recommended that a comprehensive review be completed every five years.
N ON-E XEMPT
C OMPENSATION P LAN
Performance Evaluations
For all regular full-time employees, a performance appraisal or evaluation will be made on an
submitted in writing to the employee and the General Manager. All evaluations will be
forwarded to Human Resources the Customer/HR Manager for filing in the employee files.
Evaluations shall be based upon the performance of the individual in the position measured
against established job performance criteria. Such criteria may include level of knowledge,
skills, ability, quality of work, personal work traits, compliance with established HUC or
departmental rules and regulations or any other criteria that is indicative of performance.
The performance appraisal process is the application of performance standards to past
performance. In appraising an employee, these are the basic levels of performance:
5 Outstanding Performer Performance is exceptional in all areas and is recognizable as
being far superior to others.
4 Exceeds Expectations Job Requirements Results clearly exceed most positions
requirements. Performance is of high quality and is achieved on a consistent basis.
3 Solid Performer Meets Job Requirements Competent and dependable level of
performance. Meets performance standards of the job.
2 Needs Improvement Performance is deficient in certain area(s). Improvement is
necessary.
1 Unsatisfactory Results are generally unacceptable and require immediate improvement.
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
Approval of Requisition 008394, Utility Service Body for 2020 Welding Truck
Presenter:Agenda Item Type:
Jeremy Carter
New Business
Time Requested (Minutes):
3
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
BOARD ACTION REQUESTED:
Approval of Requisition 008394
Fiscal Impact:$61,299.95
Included in current budget: Budget Change:
Yes
Yes
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
($22,682.59)
$115,382.59