01-17-2014 HUCMMINUTES
Special Meeting — Hutchinson Utilities Commission
Friday, January 17, 2014
The meeting was called to order in open session at 10:00 a.m.
Members present: President Dwight Bordson; Vice President Anthony Hanson;
Secretary Monty Morrow; Commissioner Donna Luhring; Commissioner Mark Girard;
Attorney Marc Sebora.
Guests: Brenda Ewing, Human Resources Director
Closed Session
1. Closed session under Minn. Stat. 13D.03 for the purpose of considering
strategy for labor negotiations and to discuss and review labor negotiation
proposals relating to the position of General Manager.
Those persons in attendance for the closed session were:
A. All Hutchinson Utilities Commissioners;
B. City Attorney Marc Sebora;
C. City of Hutchinson Human Resource Director Brenda Ewing
D. City of Hutchinson Administrative Assistant Melissa Starke
Motion by Hanson, second by Girard, to convene into closed session at 10:01
a.m. Motion carried unanimously.
Motion by Luhring, second by Hanson to reconvene into open session at 10:07
a.m. Motion carried unanimously.
Open Session
2. Discussion of General Manager's contract.
Motion by Luhring, second by Hanson, with Morrow abstaining, to not renew
General Manager Kumm's contract and to end his relationship with the utilities
effective immediately, however have him paid the remaining portion of his
contract which ends January 31, 2014. City Attorney Marc Sebora and Human
Resources Director Ewing will see that Mr. Kumm's access is ended
immediately. Motion carried unanimously.
3. Items from the floor.
Industrial rate analysis was discussed. President Bordson noted he will be
abstaining from discussion due to a conflict of interest.
A discussion was held into possible rate adjustments or the implementation of
other internal controls that may be necessary to implement should 3M decide to
undertake a program to generate its own electricity.
Vice President Hanson and Secretary Morrow have served on a subcommittee to
complete an industrial rate analysis, mainly due to 3M's plan to consider
providing their own power. 3M had requested a rate analysis be completed for
them to determine the use of a generator for their own power. The subcommittee
of Hanson and Morrow has also met with 3M to talk about possible
improvements to the utilities CIP program.
Hanson and Morrow will be having future meetings with 3M personnel to talk
about the impact of HUC's current rate structure and how it affects 3M's
profitability.
City Attorney Marc Sebora reminded the commissioners that if there is a change
of rates in the future that final approval for all of rate changes need to be made
by the Hutchinson City Council according to the Hutchinson City Charter.
Commissioner Luhring asked if General Manager Kumm will have the option to
resign prior to the expiration of his contract. City Attorney Sebora explained that
if that is requested by the employee, the HUC would consider it. Attorney Sebora
also mentioned that Mr. Kumm has indicated that he is an honorably discharged
veteran. However, generally, the Veterans' Preference Act does not apply to
managers /supervisors. Mr. Kumm will be served with a Veterans Preference
Notice so that the proper process is followed.
Commissioner Luhring asked how management of the HUC would be handled in
the interim. President Bordson suggested contacting John Webster, Director of
Natural Gas Operations, to see if he would fill the GM role in the interim.
Bordson suggested recessing this meeting until next Tuesday and then continue
the meeting to formally appoint Webster as interim GM. Bordson explained his
reasoning of considering Webster.
General discussion was held regarding potential sick time pay out, vacation time
pay out, etc.
Vice President Hanson asked the procedure should GM Kumm or other
employees contact Commissioners about the nonrenewal of the contract.
Attorney Sebora explained that letters will be prepared that will go out to
employees and the City Council. Should Commissioners receive inquiries about
the GM position the Commission will refer all inquiries to Marc Sebora, City
Attorney.
President Bordson noted that at the continued meeting next week, he would like
to discuss the appointment of an interim GM and the process used in recruiting a
new GM.
Vice President Hanson suggested that the HUC meet with employees of the
company to review the direction of the HUC and announce the interim GM.
Bordson and Hanson can handle the communication meeting as President and
Vice President. Luhring asked if compensation should be considered for the
interim GM. Luhring also asked if a compensation study has been completed by
HUC. Attorney Sebora noted that MMUA has completed a salary study, however
a third party compensation study has not been completed. The Commission
conferred that if Webster would request additional compensation, the HUC would
discuss it and consider it. Bordson requested that when Ewing presents next
week, that a history of the last recruitment effort be presented. Ewing's
recommendation on how to provide additional information to HUC staff should
also be presented.
Industrial CIP rebates for 2013. President Bordson noted he will abstain from
discussion. Commissioner Luhring stated that she has requested information
from staff but has not received what she has requested, therefore it is difficult for
her to make a decision. Vice President Hanson explained the pool of CIP dollars
is $450,000. Funds can be used for human resources, marketing and other
things and then excess funds go into rebate programs or other conservation
effort projects. Hanson would like to ensure that the 2014 CIP rebate dollars are
allocated correctly and then that model used for the 2013 requests. That would
ensure that rebates are allocated fairly and the users receive the rebates as they
should. 3M and others will continue to do conservation efforts, however they
should be receiving proper rebates. The consensus of the Commission was to
take the 2014 CIP model and use it for the 2013 rebate program. This will be
discussed at the regular HUC meeting on January 29, 2014.
General discussion was held regarding the purchase of a drilling machine.
President Bordson reminded the Commission that the recessed meeting will
include appointing John Webster as Interim GM if he accepts. In addition, the
request is that Brenda Ewing, Human Resources Director, will present on the
past recruitment process for the GM position and the best way to communicate to
HUC employees on leadership changes.
There being no further business, a motion was made by Commissioner Luhring,
seconded by Commissioner Morrow, to recess the meeting to January 21, 2014,
at 10:00 a.m. at City Center. Motion was unanimously carried.
Dwight Bordson opened the recessed meeting at 10:00 a.m. on January 21,
2014.
First discussion item was noting that John Webster had accepted the assignment
of interim general manager.
Motion by Hanson, second by Morrow, to appoint John Webster as Interim
General Manager. Motion carried unanimously.
Second discussion item was having Brenda Ewing, Human Resources Director,
provide an overview of the recruitment process used in the past when filling the
General Manager position.
Brenda Ewing, Human Resources Director, distributed information and the
position description used for the recruitment process used in 2004, the last time
the general manager was hired. It took several months at that time to fill the
position. The information distributed included the employment ads, the
application packet and job description. Ms. Ewing also distributed employment
packets used for other director positions with the City. Ms. Ewing is suggesting
to advertise for the position externally. During the last recruitment efforts, the
position was open for approximately 3 -4 weeks. One thing for the Commission to
consider is also including a supplemental set of questions to be included with the
application packet, which will also include the application and resume. The
supplemental questionnaire could include just a few questions to get a feel for
the applicant's philosophy on certain areas of the position. Ms. Ewing asked that
the Commission review the job description and determine if any changes need to
be made, as well as reviewing the salary range and qualifications area. The
salary range is typically included in the position profile, at a minimum. Vice
President Hanson asked the procedure used in conjunction with HUC staff. Ms.
Ewing explained that with all HUC positions, Ms. Ewing and her staff administer
the recruitment and hiring process. Ms. Ewing explained that with the last GM
recruitment process, she reviewed all the applications for minimum qualifications
and then forwarded to a two -panel subcommittee from the HUC and then the
finalist interviews were conducted with the full Commission. The Commission
can determine if they would like the full Commission involved with the interview
process and, if so, at what stage they would like to be involved. Ms. Ewing noted
that a search firm could be utilized if the Commission would like to, however the
City has not used search firms in their recruitment efforts.
President Bordson commented that he would like the search to begin as soon as
possible, therefore he asked the Commission to review all information and get
back to Ms. Ewing by the end of the week. The Commission asked Mr. Webster
and Steve Lancaster, Director of the Electrical Division, to review the position
description and provide feedback to Ms. Ewing. President Bordson then asked
Ms. Ewing to provide the updated description and position profile to the
Commissioners for any final comments before the position is advertised. The
Commission noted that they would like all applications submitted to Ms. Ewing.
Mr. Sebora distributed some information provided by MMUA on general
managers' compensation. Mr. Sebora will distribute the entire survey to the
Commissioners for them to review, which will include salaries for positions other
than general managers. Secretary Morrow asked that staff provide information
on the governor's salary cap. Discussion was held the best way to establish the
salary range. Ms. Ewing suggested including the full salary range in the position
profile, but also including the starting salary range.
General discussion was held whether or not the position would be a contract
position. Pros and cons were discussed. Discussion was held on the details to
be included in a contract. Contractual language will be finalized when a
candidate is selected.
Ms. Ewing will notify the IBEW as a courtesy and good faith effort of the open
GM position and notification of the interim GM position.
President Bordson summarized that the Commission will review the position
description and advertisements, Ms. Ewing will be the main contact, the full
salary range will be published and all this done by the end of this week so that
the recruitment effort can begin next week. The position application packet will
include 3 -5 supplemental questions. Ms. Ewing will screen applications, the
subcommittee will review to select interview candidates and discussion will be
held as to who will interview candidates.
Discussion was held on whether or not to appoint a two - person subcommittee to
work with Ms. Ewing on recruitment/interview efforts for the GM position. The
direction of the Commission was to allow the entire Commission to view
applications at separate time and rank/score them prior to interviews being held.
Motion by Girard, second by Hanson, to appoint Bordson and Luhring to
subcommittee to conduct first -round interviews for GM position. Motion carried
unanimously.
President Bordson noted that he and Vice President Hanson have scheduled
employee meetings today beginning at 11:30 a.m. to review the management
change at HUC. A meeting will be held with the Director of the Electrical Division
and the management team and then with all employees.
Marc Sebora commented that Mr. Kumm is eligible for his vacation pay since he
is leaving in good standing. Discussion was held on how vacation time is carried
over. Commissioner Luhring requested that the Commission be allowed to see
how the former GM's vacation leave was calculated. The final payout for Mr.
Kumm will be considered at the regular HUC meeting on January 29, 2014.
President Bordson commented that the vacation accrual policy should be
reviewed and ensured management members are in compliance.
Mr. Webster disclosed to the commission that he has an outside consulting
business called Natural Gas, LLC. It is in no way associated with HUC. He
conducts his work out of state and on his own time. Attorney Sebora commented
that the Commission should get as much information as possible from Webster
on this consulting business to ensure that it in no way interferes with Mr.
Webster's performance of HUC business or is a conflict of interest. Mr. Webster
explained that most of the work is done out of state but there are some projects
in Minnesota, specifically in Round Lake and in Cloquet. Discussion was held on
ensuring annual certifications are completed by employees on HUC policies.
With no further business to discuss, motion by Hanson, second by Luhring, to
adjourn at 11:10 a.m. Motion carried unanimously.
Monty Morrov/, Secretary
ATTEST:
Dwight Bordson, President