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01-29-2014 HUCMMINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, January 29, 2014 Call to order — 3:00 p.m. President Bordson called the meeting to order. Members present: President Dwight Bordson; Vice President Anthony Hanson; Secretary Monty Morrow; Commissioner Mark Girard; Commissioner Donna Luhring; Attorney Marc Sebora; Interim General Manager John Webster. 1. Commission Reorganization President Bordson called for the annual Commission reorganization. A motion was made by Secretary Morrow, seconded by Commissioner Girard to elect Anthony Hanson to the position of president. Motion was unanimously carried. A motion was made by Commissioner Girard, seconded by Vice President Hanson to elect Monty Morrow to the position of vice president. Motion was unanimously carried. A motion was made by Vice President Hanson, seconded by Secretary Morrow to appoint Mark Girard as secretary. Motion was unanimously carried. A motion was made by President Bordson, seconded by Commissioner Luhring to appoint Marc Sebora as legal counsel. Motion was unanimously carried. A motion was made by President Bordson, seconded by Vice President Hanson to appoint Kim Koski as recording secretary. Motion was unanimously carried. A motion was made by Commissioner Luhring, seconded by Secretary Morrow, to designate Citizens Bank & Trust as depository for utility funds. Motion was unanimously carried. Vice President Hanson and Commissioner Girard abstained from voting due to a conflict of interest. A motion was made by Commissioner Luhring, seconded by Secretary Morrow to designate Wells Fargo as depository for utility funds. Motion was unanimously carried. Vice President Hanson and Commissioner Girard abstained from voting due to a conflict of interest. A motion was made by Commissioner Luhring, seconded by Secretary Morrow to designate Home State Bank as depository for utility funds. Motion was unanimously carried. Vice President Hanson and Commissioner Girard abstained from voting due to a conflict of interest. 1 2. Approve Minutes of January 2, 2014 (December Regular Meeting) The minutes of the January 2, 2014 regular meeting were reviewed. A motion was made by Secretary Morrow, seconded by Vice President Hanson to approve the minutes. Motion was unanimously carried. 3. Ratify Payment of Bills for December 2013 The December 2013 payables were discussed. After discussion, a motion was made by Vice President Hanson, seconded by Commissioner Girard to ratify the payment of bills in the amount of $4,644,565.02. (detailed listing in payables book). Motion was unanimously carried. 4. Approve Financial Statements /Budget Year to Date Jared Martig presented the December 2013 financial statements /budget year -to- date. Jared also discussed the results of the auditor's review of the MRES Big Stone II project and the early final payment in June 2013 of amount owed for the project. The auditors are requesting that HUC develop an amortization plan for the payments. The Board discussed options on how to proceed with an amortization schedule. After discussion, a motion was made by Vice President Hanson, seconded by Commissioner Girard to approve the financial statements /budget year -to -date. Motion was unanimously carried. 5. Review Policies and Requirements Booklet Interim GM Webster presented the policies and requirements booklet, sections: • Minnesota Government Data Practices Act & Public Records Request • Electric Service Requirements & Charges • Temporary Service - Electric No changes were recommended. 6. Approve Changes to Exempt and Non - Exempt Handbooks Interim GM Webster presented changes to the exempt and non - exempt handbooks, sections: • Travel Expenses • Worker's Compensation • Vacation • Holidays The recommended changes were primarily for clean -up In the Travel Expenses section, the Board requested removing the last paragraph and bullet points in "Overnight Stays, Meals and Entertainment Expenses" on page 2 (exempt only) so the policy applies equally to all exempt employee positions. After discussion, a motion was made by Commissioner Luhring, seconded by Secretary Morrow to approve the changes to section Travel Expenses to include 2 the exclusion of the last paragraph and bullet points in "Overnight Stays, Meals and Entertainment Expenses" on page 2 (exempt only). Motion was unanimously carried. (Changes attached.) A motion was made by Vice President Hanson, seconded by Secretary Morrow to approve the changes to section Worker's Compensation. Motion was unanimously carried. (Changes attached.) In the Vacation section, discussion was held regarding reviewing the vacation hourly increments when the Union contract is open again in three years. A motion was made by Vice President Hanson, seconded by Commissioner Luhring to approve the changes to section Vacation. Motion was unanimously carried. (Changes attached.) In the Holidays section, the Board requested changing the word "will" to "shall" in the non - exempt handbook to be consistent with the exempt handbook. After discussion, a motion was made by Secretary Morrow, seconded by Vice President Hanson to approve the changes to section Holidays. Motion was unanimously carried. (Changes attached.) 7. Review Service Beyond City Limits of Hutchinson Interim GM Webster presented the Service Beyond City Limits of Hutchinson policy. No changes were recommended. 8. Approve Changes to Parallel Generation Policy (Tabled at the January 2, 2014 Regular Meeting) Interim GM Webster presented the Parallel Generation Policy which was tabled in the January 2, 2014 regular meeting. Attorney Sebora is assisting with working on the insurance and staff is working on further changes to the policy. Policy tabled until the February regular commission meeting. 9. Review CIP Rebate Level of Authority Interim GM Webster presented the CIP rebate level of authority. This is part of HUC's policy review process. No changes were recommended. 10. Discuss Industrial CIP Rebate Nick Nelson presented two alternatives to remedy the 2013 Industrial CIP refund issue. These recommendations were formed after receiving information from MRES on qualifying projects that 3M had completed in 2013. The two alternatives recommended are: 1. $15,000 to HTI (first come, first served) and the remaining $25,000 to 3M. HUC had budgeted $40,000 for the 2013 industrial rebates. 2. $15,000 to HTI and up to $80,000 to 3M for projects completed in 2013. HUC has justification for the larger amount regarding the 3M projects (this option is $55,000 over HUC's 2013 budget of $40,000). The Board requested it be clear that going over budget each year is not an option. 3 After discussion, a motion was made by Commissioner Girard, seconded by Secretary Morrow to approve option #2, $15,000 to HTI and up to $80,000 to 3M for projects completed in 2013. Motion was unanimously carried. President Bordson abstained due to conflict of interest. (Handout attached.) 11. Discuss 3M Update: Anthony Hanson and Monty Morrow Secretary Morrow reported they met with Dave Berg last week regarding the industrial rate analysis. Dave Berg's analysis showed that 3M doing their own generation has too great of an impact on HUC. HUC's goal is to retain 3M as a demand customer. Plans are to meet with 3M again in a couple months. 12. Discuss Delegation of Authority Discussion held regarding any need to modify this policy for Interim General Manager. Attorney Sebora reported it does not need modification. 13. Discuss HUC Annual Breakfast Meeting Scheduled for Wednesday, April 9, 2014 at 7:00 a.m. Discussion held regarding a change in format this year by bringing a speaker in and having a roundtable discussion style meeting. A motion was made by Vice President Hanson, seconded by Commissioner Girard to approve HUC Annual Breakfast Meeting scheduled for Wednesday, April 9, 2014 at 7:00 a.m., as an open meeting. Motion was unanimously carried. 14. Approve Requisition #5680 for Purchase of Vehicles (Tabled at the January 2, 2014 Regular Meeting) Steve Lancaster presented requisition #5680 for purchase of vehicles in the electric department. This is a State bid and is a 2014 budgeted item. A motion was made by Vice President Hanson, seconded by Commissioner Luhring to approve requisition #5680 for purchase of vehicles for $52,123.19 from Nelson GMC. Motion was unanimously carried. (Requisition attached.) 15. Approve Requisition #5714 for Purchase of a Vehicle for Natural Gas Department Interim GM Webster presented requisition #5714 to replace his vehicle in the natural gas department. Received three bids: Jay Malone Motors, Nelson GMC (State bid) and Litchfield Chrysler Center. Interim GM Webster recommended purchasing from Jay Malone Motors as they are local. A motion was made by Secretary Morrow, seconded by Vice President Hanson to approve requisition #5714 for purchase of a vehicle for Natural Gas Department for $30,400.59 from Jay Malone Motors. Motion was unanimously carried. (Requisition attached.) 16. Communication from the City Administrator City Administrator Carter was absent. 17. Division Reports Natural Gas — John Webster 4 • Annual residential natural gas rate comparison handed out. RUC's rates have not changed since 2006. HUC's goal is to keep rates flat in the natural gas division. • HUC has nine contracts which were pre - purchased three years ago. Natural gas market has gone upside down. Because HUC has a pipeline this doesn't affect HUC operationally or financially. We were able to prevent the high cost of $53 for natural gas as system control lowered HUC's nomination as much as possible. The system control personnel has done a great job keeping the nominations going. • Met with Jan Sifferath and Rich Westlund on Monday regarding insurance. Setting up a meeting with the Union to get the conversation started on future insurance rates. President Bordson requested to keep the employees apprised of what's going on. • There is renewed interested in natural gas for those customers who currently have propane due to high prices of propane. Finance — Jared Martig • Working with the auditors. Electric — Steve Lancaster • Handed out electric rate comparisons for 2012 -2013 for all rate classes. HUC has continued to have stable rates. • Maintenance Crew Chief position opened due to retirement. No one has responded to the internal posting yet. • General Electric at HUC to do training on the new control system and troubleshooting an issue with it. • Steve reported the Wartsila engine is working well for HUC. 18. Legal Update Nothing to report Unfinished Business • Discuss Separate Business Unit for Wholesale Business o In another month, Jared will have information on this. • Discuss Pre -Pay for Natural Gas o Interim GM Webster mentioned prepays are put on hold until natural gas prices change. • Discuss Joint Meeting with City o President Bordson is waiting for a response from Mayor Cook on coordinating a date for the joint meeting. New Business • John Webster presented the Pay Equity Report for Board approval. This report is required by the State to be performed once every three years. HUC is certified and in good standing. Motion was made by Vice President Hanson, seconded by Commissioner Girard to approve the Pay Equity Report. Motion unanimously carried. (Pay Equity Report attached.) 5 • Commissioner Luhring referred to an email she received regarding the point grade conversion for HUC salaries. She questioned whether there needs to be a subcommittee to review the policies and procedures for the compensation plan. Attorney Sebora stated the HUC bylaws state all salaries of employees need to be approved by the Board. President Bordson requested a market comparison be considered. Interim GM Webster reported he met with Jan Sifferath and Wayne Brede last week regarding an exempt employee market comparison. Attorney Sebora had a conference call with MMUA today who is receiving a salary survey from municipal utilities to go into the mix of salaries. Jared Martig stated he has the MMUA study and will email it to the Board. Further discussion was held regarding creating a subcommittee to review the Compensation Plan along with reviewing the benchmark market studies HUC is to receive. This committee would then make salary range recommendations. A motion was made by President Bordson, seconded by Secretary Morrow to appoint Commissioner Luhring and Commissioner Girard to the compensation subcommittee. Motion unanimously carried. • Attorney Sebora requested the Board approve a pay range to include in the hiring process of a new HUC general manager. After discussion, a motion was made by Vice President Hanson, seconded by Commissioner Girard to approve a salary range of $98,000 to $162,245 (Governor's Salary Cap for 2014). Motion was unanimously carried. • Interim GM Webster thanked all utility employees who have worked so hard this January to keep utilities running in Hutchinson and Brownton during bad weather conditions. President Bordson suggested HUC provide a recognition gathering for all employees and let the Board know the date. There being no further business, a motion was made by Vice President Hanson, seconded by Commissioner Luhring to adjourn the meeting at 4:46 p.m. Motion was unanimously carried. Mark Girard, Secretary ATTEST: Oaf� Anthony Hans n, Preside t R EXEMPT Travel Expenses Business Related Vehicle Operation Travel within the State w44-shall be by Utility -HUC vehicle if possible. The Fines ShaI If a y -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 w4 —shall be reimbursed for mileage at the current IRS mileage reimbursement rate. • T"T„t- UtilityHUC is not liable for damage to personally owned vehicles used for U#4ty HUC business. • The k444-yHUC may request proof of insurance from employees who use personally owned vehicles on y -HUC business. • Travel to and from events should be by the most direct route possible. • Employees are expected to return in a timely manner. Travel outside of the State must be approved by the employee's Director or Manager. If it is appropriate to drive, the employee shall follow the same rules as travel within the State. Whether a y -HUC vehicle is used or a personal vehicle is used, the employee is responsible for any traffic or parking citations the employee receives while operating a--such vehicle on Utility-ILUC business. Employees who drive a HUC may- vehicle home may use the vehicle only for 4t&y -HUC business purposes. Employees who are members of the Hutchinson Fire Department or Rescue Squad may use a Utility 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 the U#4t-ytLUC at the time of the call. If the firefighter or rescue squad member is at the -UtilityHUC r^ ^teF eemp 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 tie yHUC. In the circumstances of air travel, the following rules shall apply: • Commercial carriers shall be used. • Tickets should be at "standard" or "coach" class. • Travel to and from the airports shall follow the Business Related Vehicle Operation section. • Travel outside of the State must be approved by the employee's Director or Manager. • Only employee's air travel expenses wiN -shall be prepaid, charged, or reimbursed at cost. 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 employee's Director or Manager. Overnight Stays, Meals and Entertainment Expenses Hotel reservations w4l -shall be made prior to the employee leaving for out of town travel. The following items shall apply to overnight stays: • Hotel accommodations for the employee must be approved by the employee's Director or Manager. • In the event the employee is traveling on Utility 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 w4l- -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 w&shall not be reimbursed. , - N- Expense Report An expense report shall be filled out for all reimbursement requests for purchases using personal funds. Unsupported expenses using personal funds w41 -shall not be reimbursed by HUC. An expense report shall also be filled out for all company eF^4�4t rave I 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 business purpose. Alcohol is not a reimbursable expense. It is the employee's responsibility to obtain an itemized receipt. The expense report shall be approved by your Director, Manager, or Supervisor before submitting to the Financial Manager. Worker's Compensation An employee who is injured on the job or becomes ill due to job - related reasons is eligible for worker's compensation benefits. The ',�, 'fsHUC's worker's compensation insurance provider w4�shall pay the employee approximately 2/3 of the weekly gross wage or salary lost due to injury or illness and the- Ut+44yHUC w l�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 from the worker's compensation portion of the paycheck. SECTION 5 - EMPLOYEE BENEFITS Vacation Exempt employees shall accrue paid vacation on the employment anniversary date according to the following schedule: Number of Years Employed Vacation 20 hours 1 40 hours 2 80 hours 7 120 hours 11 128 hours 12 136 hours 13 144 hours 14 152 hours 15 160 hours 16 168 hours 17 176 hours 18 184 hours 19 192 hours 20 200 hours Vacation may be used after completion of the probationary period. Employees must receive prior approval of their vacation requests from their Director, Manager or Supervisor. A vacation request for more than one day must be submitted in person at least two workdays in advance. (For example, if an employee is scheduled to work Wednesday, Thursday, Monday and the employee wants to take Monday afternoon as vacation, the employee must submit a request in person by Wednesday afternoon.) An employee may carry over up to a maximum of one time their annual accrual of vacation into the next vacation year. Vacation year is defined as service anniversary to service anniversary. Each permanent full -time employee must use at least 40 hours of vacation leave each year. New employees who only receive 40 hours of vacation per year must use at least 20 hours of vacation leave each year. Employees who are on vacation and experience a disabling accident or illness may use sick leave instead of vacation upon providing their Director, Manager or Supervisor appropriate proof of the accident or illness. Holidays Employees are eligible for holiday pay effective immediately upon hire. ' The ',,,�- �sHLIC Wi4 shall observe the following days as holidays: • New Year's Day • Martin Luther King Day • President's Day • Memorial Day • Fourth of July • Labor Day • Veteran's Day • Thanksgiving Day • Christmas Day If the holiday falls on a Sunday, the following Monday shall be the holiday. If the holiday falls on a Saturday, the preceding Friday shall be the holiday. If Christmas falls on a Tuesday, Wednesday, Thursday or Friday, then the preceding day shall be a Christmas Eve Day holiday. Additionally, there shall be two (2) floating holidays determined by mutual agreement between the employee and Director, Manager or Supervisor. If Christmas falls on a Saturday, Sunday, or Monday, there shall be no Christmas Eve Day holiday but there shall be three (3) floating holidays determined by mutual agreement between the employee and Director, Manager or Supervisor. Floating holidays must be used by the end of each calendar year. Employees w&shall be paid eight (8) hours straight time for each of the holidays. Temporary employees who work on a holiday w44l -shall be paid at the employee's regular base pay rate and w41.4-shall not receive holiday pay for hours not worked. NON - EXEMPT Travel Expenses Business Related Vehicle Operation Travel within the State w4l_-shall be by y --HUC vehicle if possible. T"^ f^fle-VARg Fules sha! apply` 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. • The „HUC is not liable for damage to personally owned vehicles used for Ut4ity HUC business. • The " 4tyt UC may request proof of insurance from employees who use personally owned vehicles on Utility HUC business. • Travel to and from events should be by the most direct route possible. • Employees are expected to return in a timely manner. Travel outside of the State must be approved by the employee's Director or Manager. If it is appropriate to drive, the employee shall follow the same rules as travel within the State. Whether a -y-HUC vehicle is used or a personal vehicle is used, the employee is responsible for any traffic or parking citations the employee receives while operating a--such vehicle on Utility-IIUC business. Employees who drive a HUC U#4ty- vehicle home may use the vehicle only for y -HUC business purposes. Employees who are members of the Hutchinson Fire Department or Rescue Squad may use a Utility 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 the HUC at the time of the call. If the firefighter or rescue squad member is at the yHUC eenteF eemp 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 t#e Ut4ityHUC. In the circumstances of air travel, the following rules shall apply: • Commercial carriers shall be used. • Tickets should be at "standard" or "coach" class. • Travel to and from the airports shall follow the Business Related Vehicle Operation section. • Travel outside of the State must be approved by the employee's Director or Manager. • Only employee's air travel expenses will be prepaid, charged, or reimbursed at cost. 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 employee's Director or Manager. Overnight Stays and Meals Hotel reservations w4 -shall be made prior to the employee leaving for out of town travel. The following items shall apply to overnight stays: • Hotel accommodations for the employee must be approved by the employee's Director or Manager. • In the event the employee is traveling on Utility—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 w41--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 eF^4�.„t ea-F4travel 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 business purpose. Alcohol is not a reimbursable expense. It is the employee's responsibility to obtain an itemized receipt. The expense report shall be approved by your Director, Manager, or Supervisor before submitting to the Financial Manager. Worker's Compensation An employee who is injured on the job or becomes ill due to job - related reasons is eligible for worker's compensation benefits. The -Uti HUC's worker's compensation insurance provider will pay the employee approximately 2/3 of the weekly gross wage or salary lost due to injury or illness and the W4I+t HUC will 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 from the worker's compensation portion of the paycheck. SECTION 5 - EMPLOYEE BENEFITS Vacation See Union Contract. Holidays Employees are eligible for holiday pay effective immediately upon hire. T",,,�- 't*PCHUC WW shall observe the following days as holidays: • New Year's Day • Martin Luther King Day • President's Day • Memorial Day • Fourth of July • Labor Day • Veteran's Day • Thanksgiving Day • Christmas Day If the holiday falls on a Sunday, the following Monday shall be the holiday. If the holiday falls on a Saturday, the preceding Friday shall be the holiday. If Christmas falls on a Tuesday, Wednesday, Thursday or Friday, then the preceding day shall be a Christmas Eve Day holiday. Additionally, there shall be two (2) floating holidays determined by mutual agreement between the employee and Director or Manager. If Christmas falls on a Saturday, Sunday, or Monday, there shall be no Christmas Eve Day holiday but there shall be three (3) floating holidays determined by mutual agreement between the employee and Director or Manager. Floating holidays must be used by the end of each calendar year. Employees shall be paid eight (8) hours straight time for each of the holidays. However, those employees governed by the Memorandum of Agreement, must comply with section 13.2 of that Agreement. Temporary employees who work on a holiday shall be paid at the employee's regular base pay rate and w&shall not receive holiday pay for hours not worked. We have received info from MIRES on qualifying projects that 3M has done in the year of 2013. After meeting with Anthony last week in regard to the 3M rebate amount we can recommend two options 1) $15,000 to HTI (first come first served) and the remaining $25,000 to 3M. We had budgeted $40,000 to the Industrial rebates for 2013. 2) $15,000 to HTI and up to $80,000 to 3M for projects completed in 2013. We have justification for the larger amount regarding the 3M projects. (This option is $55,000 above our 2013 budget of $40,000) If they approve the $$$ we need to have authorization to pay the $$$ 0 00 co LA 0 O Z C O 6 a) w _N CL Q 3 U) I.i. 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The job evaluation system used measured skill, effort responsibility and working conditions and the same system was used for all classes of employees. The system used was: Description: Consultant system - grading 2. Health Insurance benefits for male and female classes of comparable value have been evaluated and: pass Part C: Total Payroll L4,201,093 7 is the annual payroll for the calendar year just ended December 31. 1/25/2012 Jurisdiction Type: Utility Commission jsifferath @ci.hutchinson.mn.us E -Mail: 3. An official notice has been posted at: Main Office (prominent location) informing employees that the Pay Equity Implementation Report has been filed and is available to employees upon request. A copy of the notice has been sent to each exclusive representative, if any, and also to the public library. The report was approved by: Hutchinson Utilities Commission (go ning body) (chief elected official) President (title) ✓® Checking this box indicates the following: - signature of chief elected official - approval by governing body - all information is complete and accurate, and - all employees over which the jurisdiction has final budgetary authority are included Date Submitted: 1/30/14 Compliance Report Jurisdiction: Hutchinson Utilities 225 Michigan Street SE Hutchinson MN 55350 Report Year: 2014 Case: 1 - 2013 DATA (Shared (Jur and MMB)) Contact: Jan Sifferath Phone: (320) 234 -0540 E -Mail: jsifferath @ci.hutchinson.mn.us The statistical analysis, salary range and exceptional service pay test results are shown below. Part I is general information from your pay equity report data. Parts II, III and IV give you the test results. For more detail on each test, refer to the Guide to Pay Equity Compliance and Computer Reports. I. GENERAL JOB CLASS INFORMATION II. STATISTICAL ANALYSIS TEST A. Underpayment Ratio = 102.31 * Male Female Balanced All Job Classes Classes Classes Classes # Job Classes 26 7 0 33 # Employees 50 8 0 58 Avg. Max Monthly 26 7 Pay per employee 6,153.87 5,456.43 6,057.67 II. STATISTICAL ANALYSIS TEST A. Underpayment Ratio = 102.31 * B. T -test Results LDegrees of Freedom (DF) = 56 Value of T = 2.197 a. Avg. diff. in pay from predicted pay for male jobs = ($118) b. Avg. diff. in pay from predicted pay for female jobs = ($701) III. SALARY RANGE TEST = 0.00 (Result is A divided by B) A. Avg. # of years to max salary for male jobs = 3.60 B. Avg. # of years to max salary for female jobs = 0.00 IV. EXCEPTIONAL SERVICE PAY TEST = 0.00 (Result is B divided by A) A. % of male classes receiving ESP 0.00 B. % of female classes receiving ESP 0.00 *(If 20% or less, test result will be 0.00) Male Female Classes Classes a. # At or above Predicted Pay 7 2 b. # Below Predicted Pay 19 5 c. TOTAL 26 7 d. % Below Predicted Pay 73.08 71.43 (b divided by c = d) *(Result is % of male classes below predicted pay divided by % of female classes below predicted pay.) B. T -test Results LDegrees of Freedom (DF) = 56 Value of T = 2.197 a. Avg. diff. in pay from predicted pay for male jobs = ($118) b. Avg. diff. in pay from predicted pay for female jobs = ($701) III. SALARY RANGE TEST = 0.00 (Result is A divided by B) A. Avg. # of years to max salary for male jobs = 3.60 B. Avg. # of years to max salary for female jobs = 0.00 IV. EXCEPTIONAL SERVICE PAY TEST = 0.00 (Result is B divided by A) A. % of male classes receiving ESP 0.00 B. % of female classes receiving ESP 0.00 *(If 20% or less, test result will be 0.00) BACKGROUND The documents submitted for approval are required every three years for each governmental agency in Minnesota. Minnesota Management and Budget administers the law and summarizes the program with the following: The Local Government Pay Equity Act (LGPEA) of 1984 (M.S. 471.991 to 471.999) required local governments to "establish equitable compensation relationships" by December 31, 1991. Other common terms for "equitable compensation relationships" are "comparable worth" or "pay equity." Compliance must be maintained and jurisdictions are periodically evaluated. Jurisdictions are on a three -year reporting cycle with approximately 500 jurisdictions reporting each year. The purpose of the law is "to eliminate sex -based wage disparities in public employment in this state." Equitable compensation relationships are achieved when "the compensation for female- dominated classes is not consistently below the compensation for male- dominated classes of comparable work value... within the political subdivision. "' Most positions within the Hutchinson Utilities Commission are reportable. Employees, who occupy positions that do not qualify as `public employees' under the Public Employee Labor Relations Act, (PELRA) are not reportable. This Pay Equity Implementation Report is ready for final submission upon a successful vote. WHEREAS Hutchinson Utilities Commission is subject to the reporting provisions of The Local Government Pay Equity Act (LGPEA) of 1984 (M.S. 471.991 to 471.999); WHEREAS The 2014 submission has been prepared and presented to the Hutchinson Utilities Commission's governing board. WHEREAS The 2014 submission is due on or before 01/31/2014; THEREFORE The Hutchinson Utilities Commission approves the submission and authorizes the signing of the implementation report. 4/— MOTION: SECOND: ' http : / /www.beta.mmb.state.mn.us /doc /comp /pay- equity /payequity.pdf