07-30-2014 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, July 30, 2014
Call to order — 3:00 p.m.
President Hanson called the meeting to order. Members present: President Anthony
Hanson; Vice President Monty Morrow; Commissioner Donna Luhring; Commissioner
Dwight Bordson; General Manager Jeremy Carter.
Members Absent: Secretary Mark Girard and Attorney Marc Sebora.
1. Approve Minutes of June 25, 2014 Regular Meeting
The minutes of the June 25, 2014 regular meeting were reviewed. A motion was
made by Vice President Morrow, seconded by Commissioner Luhring to approve
the minutes. Motion was unanimously carried.
2. Ratify Payment of Bills for June 2014
The June 2014 payables were discussed. After discussion, a motion was made by
Commissioner Bordson, seconded by Commissioner Luhring to ratify the payment
of bills in the amount of $2,981,451.05 (detailed listing in payables book). Motion
was unanimously carried.
3. Approve Financial Statements/Budget Year to Date
Jared Martig presented the June 2014 financial statements/budget year-to-date.
After discussion, a motion was made by Commissioner Luhring, seconded by
Commissioner Bordson to approve the financial statements/budget year-to-date.
Motion was unanimously carried.
4. Review Policies and Requirements Booklet
GM Carter presented the policies and requirements booklet, sections:
• Policies and Requirements Brochure
• Billing Policies
There were no initial changes; however, after discussion GM Carter recommended
striking and removing the section, Policies and Requirements Brochure as it is
outdated language and is redundant.
There were no recommended changes to billing policies.
A motion was made by Commissioner Bordson, seconded by Commissioner
Luhring to approve the changes to the policies and requirements booklet. Motion
was unanimously carried. (Changes attached.)
5. Approve Changes to Policies and Requirements Booklet
GM Carter presented changes to the policies and requirements booklet, section:
Hutchinson Utilities Commission
Changes were made for clean-up purposes and to add additional language taken
from the stricken agenda item #4, Policies and Requirements Brochure. A motion
was made by Commissioner Bordson, seconded by Vice President Morrow to
approve the changes to policies and requirements booklet. Motion was
unanimously carried. (Changes attached.)
6. Review Exempt and Non -Exempt Employee Handbooks
GM Carter presented exempt and non-exempt handbooks, sections:
• Required Clothing (Non -Exempt Only)
• Safety Glasses (Non -Exempt Only)
There were no initial changes; however, after discussion GM Carter recommended
adding the word 'generally' in the first paragraph of the section, Safety Glasses. A
motion was made by Commissioner Luhring, seconded by Commissioner Bordson
to approve changes to exempt and non-exempt employee handbooks. Motion was
unanimously carried. (Changes attached.)
7. Approve Changes to Exempt and Non -Exempt Employee Handbooks
GM Carter presented changes to the exempt and non-exempt employee
handbooks, sections:
• Jury Duty
• Smoking
• Small Hand Tools (Non -Exempt Only)
Changes made to sections, Jury Duty and Smoking were to add more descriptive
language reflecting Minnesota Statutes. Changes made to section, Small Hand
Tools (Non -Exempt Only) were made for clean-up purposes.
A motion was made by Vice President Morrow, seconded by Commissioner
Luhring to approve the changes to exempt and non-exempt handbooks. Motion
was unanimously carried. (Changes attached.)
8. Approve Exempt and Non -Exempt Employee Handbooks, Sections:
GM Carter presented exempt and non-exempt handbooks, sections:
• School Conference Leave
• Bone Marrow Donation Leave
These are two new policies added based on Minnesota Statutes. After discussion,
the Board tabled this agenda item for further review and changes.
9. Approve 2014 Accounts Receivable Charge -Offs
GM Carter presented the 2014 accounts receivable charge-offs explaining
anything older than 2008 needs to be charged off due to the six year Minnesota
Statute of Limitations. HUC has three options to collect outstanding balances: 1)
Charging a security deposit up front to offset any outstanding balance; 2) Securing
Revenue Recapture services; 3) Filing a judgment on a customer, if HUC deems
the outstanding balance is sizable enough.
2
After discussion, the Board requested GM Carter research if other utilities have a
judgment policy. A motion was made by Commissioner Luhring, seconded by
Commissioner Bordson to approve 2014 accounts receivable charge-offs. Motion
was unanimously carried. (Charge -Offs attached.)
10. Update on Joint Meeting Date with City (Commissioner Bordson)
Commissioner Bordson and Mayor Cook recommended Tuesday, August 26 at
4:00 p.m. for the joint meeting to be held in the City Council Chambers.
11. Communication from the Interim City Administrator
Interim City Administrator Sebora was absent.
12. Division Reports
Electric — Dave Hunstad
Nothing to report
Electric — Dan Lang
Nothing to report
Electric — Randy Blake
• Scheduling contractors for final 2014 and upcoming 2015 capital projects.
• Installing flags at plant 1.
Finance — Jared Martig
• Implementing Employee Self Service program for timecards.
Natural Gas — John Webster
• Purchased natural gas in July for November 2014 through October 2023 at
$5.07.
• Lowered average base load cost from $5.30 to $4.90.
• Met with Lafayette City council. They are interested in receiving natural gas
from HUC.
13. Legal Update
Attorney Sebora was absent.
Unfinished Business
• Discuss Separate Business Unit for Wholesale Business
o GM Carter met with Jared Martig to review preliminary numbers which will
be presented to the Commissioners in mid-August along with the
preliminary 2015 budget. The industrial rate discussion will take place as
well at that time.
• Discuss Industrial Rate Change — Electric
o GM Carter met with HUC staff to discuss alternative options to an industrial
rate change. GM Carter will be working on forecasting short-term, mid-term
and long-term scenarios to be presented in conjunction with the preliminary
2015 budget in mid-August.
• Discuss Compensation Study
3
o As GM Carter is working on the 2015 budgets, this item will be revisited in
approximately six weeks.
New Business
President Hanson mentioned GM Carter's employment contract included a 90 day
review. Therefore, GM Carter's first review should be scheduled in August.
There being no further business, a motion was made by Commissioner Bordson,
seconded by Commissioner Luhring to adjourn the meeting at 4:05 p.m. Motion was
unanimously carried.
ATTEST:
Anthony Hans n, Presid nt
4
Mar Girard, Secretary
HUTCHINSON UTILITIES COMMISSION
(Hereafter referred to as HUC)
A five -member Commission governs HUC. The Commission members are appointed by
the Mayor and the City Council to each serve a five-year term. The Commission meets
at 3:00 p.m. the last Wednesday of each month. The following policies are reviewed and
approved by the Commission and it reserves the right to make changes, and/or to adopt
new and amended policies, as it deems necessary from time to time. The Commission
also reserves the right to vary from its policyies in special circumstances.
HUC is a municipal utility that is owned by its citizens, through the City Council and its
political subdivision, the Hutchinson Utilities Commission.
F=meFgen-, phone RumbeF: 320 587 4745
Hours
Monday through Friday
7:30 a.m. to 4:00 p.m.
Address & Phone
225 Michigan Street SE
Hutchinson, MN 55350-1905
(320) 587-4746
Emergency Service
(320) 587-4745
Web Address
hutchinsonutilities.com
(Non -Exempt Only)
Safety Glasses
Employees must pay for their own examination (health insurance will covereg nerally 100% of
examination expense). Any supplier who can provide certificate that the glasses meet OSHA
requirements may fill the prescription. It is recommended that employees fill their prescriptions
at any optical department who accepts the Minnesota State Contract. Forms are available in the
business office.
NON-EXEMPT
JURY, WITNESS OR BOARD DUTY
A non exempt regular full-time and part-time employee called to jury duty will Feeei e his/he
replar- paywill
is he
larywill be granted paid leaves of absence. Employees are required to notiftheir
supervisor as soon as possible after receiving notice to report for jury. Such Eemployees on
jury duty will be required to turn over any compensation they receive for jury duty, minus
mileage reimbursement, to HUC in order to receive their regular wages for theep riod-endorse
their- Jµl' duty pµ,lent to 14UC e AVVJt for- allowable expenses a mil Time spent on jury
duty will not be counted as time worked in computing overtime. A., empl yee is expect a *�
r-epeFt to work for- whatever- pei4ien of the workday the employee is not aefing as J -
Employees excused or released from jury duty during their regular working hours will report to
their regular work duties as soon as reasonably possible or will take accrued vacation or
compensatory time to make up the difference.
Employees will be paid their regular wage to testify in court for HUC-related business or to serve
on a work-related board or committee which pays a per diem Any compensation received for
court appearances (e.g subpoena fees) or as meeting per diems arising out of or in connection
with HUC employment, minus mileage reimbursement must be turned over to HUC
Non -Exempt
Smoking
The HUC observes and supports the Minnesota Clean Indoor Air Act. All HUC buildings and
vehicles, in their entirety, shall be designated as tobacco free, meaning that smokingin n an f�
(through the use of tobacco products (pipes, cigars and cigarettes) or "vaping" with a -cigarettes
arg ettes
is prohibited while in a HUC facility or vehicle.
Smoking of any kind, including pi ep s, cigars, cigarettes, vaping with e -cigarettes and the use of
chewing tobacco is prohibited for employees while on duty. Employees 18 and over are allowed
to smoke only during their breaks and lunch, and only in areas designated for that purpose.
EXEMPT
JURY, WITNESS OR BOARD DUTY
A nen-exempt-regular full-time and part-time employee called to jury duty will r-eeeivehWh
ill be granted paid leaves of absence. Employees are required to notify their
supervisor as soon as possible after receiving notice to report for jury duty. Such Eemployees on
jur-y duty will be required to turn over any compensation they receive for jury, minus
mileage reimbursement, to HUC in order to receive their regular wages for theep riod.-efiderse
their- jury duty pa ,.. ent to HUG o ept f allowable expenses ra mil Time spent on jury
duty will not be counted as time worked in computing overtime. An employee is erripeete
Employees excused or released from jury duty during, their regular working hours will report to
their regular work duties as soon as reasonably possible or will take accrued vacation or
compensatory time to make up the difference.
Employees will be paid their re lgu ar wage to testify in court for HUC-related business or to serve
on a work-related board or committee which pays a per diem. Any compensation received for
court appearances (e.g. subpoena fees) or as meeting per diems arising out of or in connection
with HUC employment, minus mileage reimbursement, must be turned over to HUC.
Exempt
Smoking
The HUC observes and supports the Minnesota Clean Indoor Air Act. All HUC buildings and
vehicles, in their entirety, shall be designated as tobacco free, meaning that smokingin •n an f�
(through the use of tobacco products (pipes, cigars and cigarettes) or "vapinjg" with a -cigarettes
arg ettes
is prohibited while in a HUC facility or vehicle.
Smoking of any kind, including pipes, cigars,garettes, vaping with e -cigarettes and the use of
chewing tobacco is prohibited for employees while on duty. Employees 18 and over are allowed
to smoke only during their breaks and lunch, and only in areas designated for that purpose.
(NON-EXEMPT ONLY)
Small Hand Tools
Effeek=e januafy 1, 2004 the Utilities-HUC shall furnish the hand tools specified by the Director
or Manager as necessary to perform the employee's job duties. The UtilitiesHUC will replace
any small tools damaged or broken on the job. The damaged hand tool must be turned into the
employee's Director or Manager. It is the responsibility of the employee to replace any missing
hand tools.
2014 Charge Offs
7/24/2014
CUST. #
ACCOUNT #
AMT. OWING
ELECTRIC
NAT. GAS REASON FOR
LAST
CHARGE OFF
ACTIVITY DATE
10129
400120
1319.87
1319.87
Bankruptcy
4/17/2009
17325
310071
487.50
487.50
Bankruptcy
7/5/2005
38983
420424
131.47
131.47
Bankruptcy
7/17/2012
31871
470104
133.01
133.01
Bankruptcy
4/30/2009
69487
20000
1914.57
1914.57
Bankruptcy
12/26/2012
70836
470150
334.15
334.15
Bankruptcy
4/7/2014
437000
51128
1419.36
242.19
1177.17 Bankruptcy
3/25/2014
280360
44534
201.05
$184.21
_
16.84 Bankruptcy
4/11/2014
TOTAL BANKRUPTCY
$ 5,940.98
$ 4,746.97
$ 1,194.01
23310
214114
$113.31
$113.31
Deceased
12/16/2013
59416
40565
$258.89
$99.59
$159.30 Deceased
4/29/2014
TOTAL DECEASED
$372.20
$212.90
$159.30
27216
300270
$383.61
$383.61
Uncollectible
3/1/2007
51450
340019
$105.10
$105.10
Uncollectible
11/27/2007
27188
370615
$392.91
$392.91
Uncollectible
11/26/2006
5908
260246
$124.72
$124.72
Uncollectible
11/6/2007
35399
161085
$116.08
$116.08
Uncollectible
11/24/2006
30128
70440
$291.12
$291.12
Uncollectible
11/6/2006
56938
60205
$193.87
$193.87
Uncollectible
12/22/2006
4004
30710
$43.30
$43.30
Uncollectible
11/30/2006
11851
420466
$157.28
$157.28
10/31/2006
25788
110990
$566.04
$566.04
_Uncollectible
Uncollectible
11/21/2005
53305
470070
$293.65
$293.65
Uncollectible
11/23/2005
56364
121571
$701.94
$701.94
_ _
Uncollectible
11/21/2006
3640
70805
$51.24
$51.24
Uncollectible
11/4/2006
57603
50717
$11.13
$11.13
Uncollectible
1/8/2007
63896
130509
$31.76
$31.76
Uncollectible
3/22/2007
49455
190025
$336.81
$336.81
Uncollectible
11/28/2006
45738
190595
$168.23
$168.23
Uncollectible
9/5/2006
25585
130488
$233.87
$233.87
Uncollectible
11/21/2005
55797
120285
$576.78
$576.78
Uncollectible
11/21/2006
7021
260220
$150.57
$150.57
Uncollectible
10/31/2005
65639
420179
$53.35
$53.35
Uncollectible
10/31/2006
23198
370612
$467.81
$467.81
Uncollectible
3/28/2007
27622
320306
$692.06
$692.06
Uncollectible
11/27/2007
23800
300311
$519.41
$519.41
Uncollectible
11/27/2007
51898
320226
$396.78
$396.78
Uncollectible
3/27/2007
61929
350622
$28.17
$28.17
Uncollectible
11/23/2007
32263
350446
$44.49
$44.491
Uncollectible
11/24/2006
4613
60050
$209.96
$209.96
Uncollectible
10/9/2007
61362
370904
$37.49
$37.49
Uncollectible
11/21/2005
11606
30915
$184.32
$184.32
Uncollectible
11/30/2006
50750
460338
$378.77
$378.77
Uncollectible
10/31/2007
28518
210642
$580.26
$580.26
IUncollectible
11/29/20_05
52633
370604
$287.50
$287.50
Uncollectible
11/26/2006
2014 Charge Offs
7/24/2014
CUST. #
ACCOUNT #
AMT. OWING ELECTRIC
NAT. GAS REASON FOR
LAST
CHARGE OFF
ACTIVITY DATE
35168
260294
$69.92
$69.92
Uncollectible
11/1/2006
3850
470076
$54.31
$54.31
Uncollectible
9/1/2006
33810
40255
$834.89
$834.89
Uncollectible
11/28/2007
26642
162011
$104.67
$104.67
Uncollectible
11/24/2006
59262
161097
$278.97
$278.97
Uncollectible
11/27/2007
5474
130487
$198.41
$198.41
Uncollectible
11/21/2005
26565
80675
$2,460.58
$2,460.58
Uncollectible
11/28/2005
8855
310185
$153.20
$153.20
Uncollectible
10/28/2006
54103
452508
$106.09
$106.09
Uncollectible
11/23/2005
62251
121340
$226.27
$226.27
Uncollectible
11/21/2007
15876
420553
$142.75
$142.75
Uncollectible
10/31/2007
32417
120300
$880.70
$880.70
Uncollectible
11/28/2006
48027
2905821
_
$397.07
$397.07
Uncollectible
11/1/2006
8218
130504
$148.95
$148.95
Uncollectible
11/21/2005
_ 56420
420432
$262.45
$262.45
Uncollectible
3/1/2007
55328
121454
$138.04
$138.04
Uncollectible
11/22/2006
11333
300105
$779.68
$779.68
Uncollectible
11/26/2006
63357
160470
$203.96
$203.96
Uncollectible
11/24/2006
53179
470362
$47.85
$47.85
Uncollectible
10/22/2007
30744
130492
$371.33
$371.33
Uncollectible
11/21/2005
26495
20280
$523.47
$523.47
Uncollectible
11/28/2006
5138
370817
$213.93
$213.93
Uncollectible
11/22/2006
65079
350487
$518.56
$518.56
Uncollectible
11/28/2005
35903
280415
$256.97
$256.97
Uncollectible
11/5/2006
32571
280585
$582.53
$582.53
Uncollectible
11/5/2006
23002
10315
$338.01
$338.01
Uncollectible
4/20/2007
55867
80445
$398.43
$398.43
Uncollectible
11/1/2005
26831
320203
$174.00
$174.00
Uncollectible
11/26/2006
21280
310240
$559.90
$559.90
Uncollectible
11/26/2006
31857
30675
$244.97
$244.97
Uncollectible
11/30/2006
45500
370624
$729.46
$729.461
Uncollectible
11/26/2006
40474
30385
$88.80
$88.80
Uncollectible
11/30/2006
28756
340017
$388.91
$388.91
Uncollectible
11/22/2006
25018
470003
$204.17
$204.17
Uncollectible
Uncollectible
4/6/2007
11/23/2005
43701 470094 $111.49 $111.49
40306
140615
$602.17
$602.17
Uncollectible
11/1/2006
8288
121453
$96.00
$96.00
Uncollectible
11/21/2007
15673
40087
$169.26
$169.26
Uncollectible
7/7/1998
15673
40090
$463.49
$463.49
Uncollectible
10/31/2007
15673
40092
$81.76
$81.76
Uncollectible
7/3/1998
34699
310160
$41.97
$41.97
Uncollectible
11/26/2006
4760
120380
$340.39,
$340.39
Uncollectible
11/22/2005
59626
130492
$207.20
$207.20
Uncollectible
8/10/2006
10528
30865
$1,321.19
$1,321.19
Uncollectible
11/28/2007
6202
300270
$175.96
$175.96
Uncollectible
8/3/2006
23744
31130
$900.96
$900.96
Uncollectible
11/28/2007
31570
470181
$169.21
$169.21
Uncollectible
11/25/2006
44583
340042
$157.26
$157.26
Uncollectible
7/18/2006
49819'
120605
$290.21
$290.21
Uncollectible
11/26/2007
63119
120495
-$499.531
$499.53
1 Uncollectible
11/26/2007
2014 Charge Offs
7/24/2014
CUST. #
ACCOUNT #
AMT. OWING
ELECTRIC
NAT. GAS REASON FOR
LAST
CHARGE OFF
ACTIVITY DATE
8757
70405
$450.70
$450.70
Uncollectible
11/4/2007
55776
300450
$691.45
$691.45
Uncollectible
11/26/2006
19845
420006
$84.54
$84.54
Uncollectible
11/30/2007
62538
60300
$43.64
$43.64
Uncollectible
11/4/2005
38850
420333
$146.06
$146.06
Uncollectible
10/31/2005
28455
300040
$857.16
$857.16
Uncollectible
11/27/2007
11767
460337
$378.45
$378.45
Uncollectible
10/29/2005
41237
310165
$420.94
$420.94
Uncollectible
11/23/2005
11774
210705
$199.89
$199.89
Uncollectible
11/28/2006
47418
121419
$229.95
$229.951Uncollectible
11/24/2006
60060
191023
$63.63
$63.63
_
Uncollectible
11/30/2005
22568
340300
$68.23
$68.23
Uncollectible
11/24/2006
25347
90340
$511.77
$511.77
Uncollectible
11/2/2007
56868
470190
$384.75
$384.75
Uncollectible
11/23/2005
5873
340017
$323.36
$323.36
Uncollectible
11/27/2007
32319
160616
$153.06
$153.06
Uncollectible
4/22/2007
39221
212000
$37.79
$37.79
Uncollectible
8/30/2006
29533
60645
$151.12
$151.121
Uncollectible
4/21/2007
23968
130030
$73.40
$73.40
_
Uncollectible
11/28/2005
56875
60645
$42.64
$42.64
Uncollectible
4/20/2007
55461
420373
$52.98
$52.98
Uncollectible
11/9/2007
16128
310129
$205.20
$205.20
Uncollectible
11/23/2005
35217
420381
$129.79
$129.79
Uncollectible
10/31/2005
46151
371055
$131.36
$131.36
Uncollectible
11/28/2007
52899
320120
$79.47
$79.47
Uncollectible
11/23/2005
21315
30010
$50.00
$50.00
Uncollectible
11/30/2006
17997
20200
$78.15
$78.15
Uncollectible
11/28/2006
31213
130488
$293.32
$293.32
Uncollectible
11/22/2006
48566
350469
$54.71
$54.71
Uncollectible
11/28/2005
38493
130497
$67.39
$67.39
Uncollectible
11/21/2005
56581
121350
$283.15
$283.15
Uncollectible
1/25/2006
21707
300270
$375.10
$375.10
Uncollectible
11/26/2006
29722
420426
$152.85
$152.85
Uncollectible
7/26/2007
44660
30990
$179.35
$179.35
Uncollectible
11/30/2006
TOTAL UNCOLLECTIBLE
$34,965.98
$34,965.98
GRAND TOTAL
$41,279.16
$39,925.85
$1,353.31
Total for EOY 2012
$4,067.15
Total for EOY 2011
$9,417.64
Total for EOY 2010
$ 34,405.86
Total for EOY 2009
$ 14,156.63
Total for EOY 2008
$ 21,609.86