11-28-2007 HUCMRegular Meeting
November 28, 2007
Members present: President Donald H. Walser; Vice President David Wetterling;
Secretary Dwight Bordson; Commissioner Robert Hantge; General Manager Michael
Kumm; Attorney Marc Sebora
Member absent: Commissioner Craig Lenz
President Walser called the meeting to order at 3:00 p.m.
The minutes of the October 31, 2007 regular meeting were reviewed. A motion was
made by Commissioner Hantge, seconded by Secretary Bordson to approve the
minutes as written. Motion was unanimously carried.
The October payables were discussed. A motion was made by Secretary Bordson,
seconded by Commissioner Hantge to ratify the payment of bills in the amount of
$3,000,023.14 (detailed listing in payables book). Motion was unanimously carried.
The financial statements/budget year-to-date were discussed. GM Kumm pointed out
that the medical insurance issue from our self-insurance plan will probably be an
agenda item at the December meeting. After discussion, a motion was made by
Commissioner Hantge, seconded by Vice President Wetterling to approve the financial
statements/budget year-to-date. Motion was unanimously carried.
GM Kumm asked to table the memorandum of understanding with MRES, which was
tabled at the September 26 and October 31, regular meetings. More details will come
out in mid December and will come back to the board for approval. Vice President
Wetterling made a motion, seconded by Secretary Bordson to table the memorandum of
understanding with MRES. Motion was unanimously carried.
Attorney Sebora presented the data practices act and public records request policy.
Discussion was held regarding releasing specific customer account information, which
is private data. Attorney Sebora will add a section as it relates to releasing specific
customer account information. Another item discussed was GM Kumm authorizing the
Administrative Coordinator position as his back-up, for being responsible for
maintenance of HUC records. Also discussed was a section regarding labeling
information as being private data/confidential. Attorney Sebora will add requested
sections and bring this back to the board at the December commission meeting with
these modifications. Secretary Bordson made a motion, seconded by Commissioner
Hantge to table the HUC’s data practices act and public records request policy. Motion
was unanimously carried.
Steve Lancaster, Director Electric Division, presented requisition #002861 for unit #1
repair. This is corrective maintenance as there is internal damage to the LM6000 and it
needs to be repaired. After discussion, Vice President Wetterling made a motion,
seconded by Commissioner Bordson to approve requisition #002861 for unit #1 repair
from GE Package Power. Motion was unanimously carried.
The labor agreement between Hutchinson Utilities Commission and International
Brotherhood of Electrical Workers Local 949 was brought to the board for ratification.
After discussion, Vice President Wetterling made a motion, seconded by Commissioner
Bordson to ratify labor agreement between Hutchinson Utilities Commission and
International Brotherhood of Electrical Workers Local 949. Motion was unanimously
carried.
Attorney Sebora discussed the resolutions passed by City Council and its potential
impacts on HUC. Discussion was held regarding the ‘Guidelines for Electronic
Communications between Council Members in the City of Hutchinson; subparagraph:
Communication outside of Council meetings.’ Commissioner Hantge made a motion,
seconded by Commissioner Bordson to have Attorney Sebora formally communicate to
City Council and Councilperson Stotts to remove the third paragraph from this
ordinance as it relates specifically to Hutchinson Utilities Commission. Motion was
unanimously carried.
Discussion was held on HUC’s policy on tuition reimbursement, which was tabled from
October 31, 2007 regular meeting. Items discussed:
1. Establish a tuition cap.
A $6,000 cap was established.
2. If coursework, or tuition exceeds cap, then director will approach commission as
to waiving the cap. One of the criteria for waiving the cap, is if the coursework is
directly related to the employees position within the company, or if the degree the
employee is seeking is beneficial to the company—in other words, it would be
difficult to hire someone who already has that degree.
Tuition, registration fees and other course related fees would be reimbursed after
successful completion of a course. Reimbursement is contingent on receiving a
“pass” or minimum grade of “C”.
3. Employee study on their own time, this includes using HUC computers, this
should be done in accordance with the IT policy
.
Increase the time frame where the employee needs to remain with the company
4.
from its existing 12 months to 24 months.
Staff will draft a policy and present it at the December Commission meeting. Anyone
participating currently will be grandfathered in and the new policy would not affect them
for the duration of their existing course.
GM Kumm presented the 2008 budget. GM Kumm said there would be no need for a
rate change in 2008. GM Kumm discussed some changes that will need to be made
before it will be ready for approval. He will make the necessary changes discussed and
bring it back to the board for approval.
GM presented the gas supply contracts.
a. The MMGA – Participant Downstream Agreements: Several attorneys are working on
this agreement. A motion was made by Vice President Wetterling, seconded by
Commissioner Hantge to approve the MMGA – Participant Downstream Agreements.
Motion was unanimously carried.
b. Participant Opinion – Gas Supply Contract: We do not have to act on this. Attorney
Sebora has reviewed this, agrees with it, and will put his opinion on letterhead.
c. Certificate with Respect to Qualifying Use: This explains how we will use the gas; it is
not for profit. All of the savings is intended to go back to our customers. A motion was
made by Vice President Wetterling, seconded by Commissioner Bordson approving and
authorizing the signing of the gas supply contracts. Motion was unanimously carried.
Division reports
Business – Jan Sifferath
With ratification of union contract, will start calculating back pay, taking into
consideration call-out pay.
Starting training on the new utility billing software – still plan to go live in April.
No final dollar amount on the business insurance. The League of MN Cities
Insurance Trust feels it should stay flat.
There are no issues with inventory; no stock-outs. The crews are very
satisfied.
Will be making changes to the Consolidated Freightways building.
Will be adding a new building for inventory with a new security system. Will be
built in three phases over two years, with phase one costing approximately
$550,000. A presentation will be given in February by Haugen Architecture.
Electric – Steve Lancaster
Engine overhaul will start December 10
Gas – John Webster
MMGA savings is 50¢ out to $1.00. Over 20 years it’s a savings of $7.3
million
Working with neighboring farmer Daryl Luthens on methane recovery.
North High Drive main relocation is complete.
th
Interviews for position of welder/serviceperson start November 29.
Started putting in service for the new Charter School.
Working with 3M on isolating a vibration on their equipment.
Progressing with the pandemic flu program.
Will have a presentation on serving gas outside city limits.
Working on a system model for gas distribution.
BP Gas Service Contract will be ready for December Commission meeting.
Had a gas leak at a residence on Jorgenson Street. We evacuated the home
and vented down the building. We found an old fuel line that’s not used any
more and there was no cap on it – gas leaked through into the home. Has
been corrected.
Legal Update
Attorney Sebora discussed HUC adopting a record retention policy.
Unfinished Business
None
New Business:
a. Holiday-Recognition Party December 7, 2007
Secretary Bordson made a motion, seconded by Commissioner Hantge to
declare the Holiday-Recognition Party scheduled for December 7, 2007 as an
open meeting.
b. Joint HUC/City Meeting
Scheduled for January 10, 2008 at the Event Center.
There being no further business, a motion was made by Commissioner Hantge,
seconded by Secretary Bordson to adjourn the meeting at 4:50 p.m. Motion was
unanimously carried.
_________________________________
Dwight Bordson, Secretary
ATTEST________________________________
Donald H. Walser, President
Regular Meeting
November 28, 2007
Members present: President Donald H. Walser; Vice President David Wetterling;
Secretary Dwight Bordson; Commissioner Robert Hantge; General Manager Michael
Kumm; Attorney Marc Sebora
Member absent: Commissioner Craig Lenz
President Walser called the meeting to order at 3:00 p.m.
The minutes of the October 31, 2007 regular meeting were reviewed. A motion was
made by Commissioner Hantge, seconded by Secretary Bordson to approve the
minutes as written. Motion was unanimously carried.
The October payables were discussed. A motion was made by Secretary Bordson,
seconded by Commissioner Hantge to ratify the payment of bills in the amount of
$3,000,023.14 (detailed listing in payables book). Motion was unanimously carried.
The financial statements /budget year -to -date were discussed. GM Kumm pointed out
that the medical insurance issue from our self- insurance plan will probably be an
agenda item at the December meeting. After discussion, a motion was made by
Commissioner Hantge, seconded by Vice President Wetterling to approve the financial
statements /budget year -to -date. Motion was unanimously carried.
GM Kumm asked to table the memorandum of understanding with MRES, which was
tabled at the September 26 and October 31, regular meetings. More details will come
out in mid December and will come back to the board for approval. Vice President
Wetterling made a motion, seconded by Secretary Bordson to table the memorandum of
understanding with MRES. Motion was unanimously carried.
Attorney Sebora presented the data practices act and public records request policy.
Discussion was held regarding releasing specific customer account information, which
is private data. Attorney Sebora will add a section as it relates to releasing specific
customer account information. Another item discussed was GM Kumm authorizing the
Administrative Coordinator position as his back -up, for being responsible for
maintenance of HUC records. Also discussed was a section regarding labeling
information as being private data /confidential. Attorney Sebora will add requested
sections and bring this back to the board at the December commission meeting with
these modifications. Secretary Bordson made a motion, seconded by Commissioner
Hantge to table the HUC's data practices act and public records request policy. Motion
was unanimously carried.
Steve Lancaster, Director Electric Division, presented requisition #002861 for unit #1
repair. This is corrective maintenance as there is internal damage to the LM6000 and it
needs to be repaired. After discussion, Vice President Wetterling made a motion,
seconded by Commissioner Bordson to approve requisition #002861 for unit #1 repair
from GE Package Power. Motion was unanimously carried.
The labor agreement between Hutchinson Utilities Commission and International
Brotherhood of Electrical Workers Local 949 was brought to the board for ratification.
After discussion, Vice President Wetterling made a motion, seconded by Commissioner
Bordson to ratify labor agreement between Hutchinson Utilities Commission and
International Brotherhood of Electrical Workers Local 949. Motion was unanimously
carried.
Attorney Sebora discussed the resolutions passed by City Council and its potential
impacts on HUC. Discussion was held regarding the `Guidelines for Electronic
Communications between Council Members in the City of Hutchinson; subparagraph:
Communication outside of Council meetings.' Commissioner Hantge made a motion,
seconded by Commissioner Bordson to have Attorney Sebora formally communicate to
City Council and Councilperson Stotts to remove the third paragraph from this
ordinance as it relates specifically to Hutchinson Utilities Commission. Motion was
unanimously carried.
Discussion was held on RUC's policy on tuition reimbursement, which was tabled from
October 31, 2007 regular meeting. Items discussed:
1. Establish a tuition cap.
A $6,000 cap was established.
2. If coursework, or tuition exceeds cap, then director will approach commission as
to waiving the cap. One of the criteria for waiving the cap, is if the coursework is
directly related to the employees position within the company, or if the degree the
employee is seeking is beneficial to the company —in other words, it would be
difficult to hire someone who already has that degree.
Tuition, registration fees and other course related fees would be reimbursed after
successful completion of a course. Reimbursement is contingent on receiving a
"pass" or minimum grade of "C ".
3. Employee study on their own time, this includes using HUC computers, this
should be done in accordance with the IT policy.
4. Increase the time frame where the employee needs to remain with the company
from its existing 12 months to 24 months.
Staff will draft a policy and present it at the December Commission meeting. Anyone
participating currently will be grandfathered in and the new policy would not affect them
for the duration of their existing course.
GM Kumm presented the 2008 budget. GM Kumm said there would be no need for a
rate change in 2008. GM Kumm discussed some changes that will need to be made
before it will be ready for approval. He will make the necessary changes discussed and
bring it back to the board for approval.
GM presented the gas supply contracts.
a. The MMGA — Participant Downstream Agreements: Several attorneys are working on
this agreement. A motion was made by Vice President Wetterling, seconded by
Commissioner Hantge to approve the MMGA — Participant Downstream Agreements.
Motion was unanimously carried.
b. Participant Opinion — Gas Supply Contract: We do not have to act on this. Attorney
Sebora has reviewed this, agrees with it, and will put his opinion on letterhead.
c. Certificate with Respect to Qualifying Use: This explains how we will use the gas; it is
not for profit. All of the savings is intended to go back to our customers. A motion was
made by Vice President Wetterling, seconded by Commissioner Bordson approving and
authorizing the signing of the gas supply contracts. Motion was unanimously carried.
Division reports
Business — Jan Sifferath
• With ratification of union contract, will start calculating back pay, taking into
consideration call -out pay.
• Starting training on the new utility billing software — still plan to go live in April.
• No final dollar amount on the business insurance. The League of MN Cities
Insurance Trust feels it should stay flat.
• There are no issues with inventory; no stock -outs. The crews are very
satisfied.
• Will be making changes to the Consolidated Freightways building.
• Will be adding a new building for inventory with a new security system. Will be
built in three phases over two years, with phase one costing approximately
$550,000. A presentation will be given in February by Haugen Architecture.
Electric — Steve Lancaster
• Engine overhaul will start December 10
Gas — John Webster
• MMGA savings is 50¢ out to $1.00. Over 20 years it's a savings of $7.3
million
• Working with neighboring farmer Daryl Luthens on methane recovery.
• North High Drive main relocation is complete.
• Interviews for position of welder /serviceperson start November 29tH
• Started putting in service for the new Charter School.
• Working with 3M on isolating a vibration on their equipment.
• Progressing with the pandemic flu program.
• Will have a presentation on serving gas outside city limits.
Working on a system model for gas distribution.
BP Gas Service Contract will be ready for December Commission meeting.
Had a gas leak at a residence on Jorgenson Street. We evacuated the home
and vented down the building. We found an old fuel line that's not used any
more and there was no cap on it — gas leaked through into the home. Has
been corrected.
Legal Update
Attorney Sebora discussed HUC adopting a record retention policy.
Unfinished Business
None
New Business:
a. Holiday- Recognition Party December 7, 2007
• Secretary Bordson made a motion, seconded by Commissioner Hantge to
declare the Holiday- Recognition Party scheduled for December 7, 2007 as an
open meeting.
b. Joint HUC /City Meeting
• Scheduled for January 10, 2008 at the Event Center.
There being no further business, a motion was made by Commissioner Hantge,
seconded by Secretary Bordson to adjourn the meeting at 4:50 p.m. Motion was
unanimously carried.
.G IIi��� >�.�-
ATTEST J, ,- � ,
Donald H. Iser, President
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