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08-31-2016 HUCMMINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, August 31, 2016 Call to order — 3:00 p.m. President Luhring called the meeting to order. Members present: President Donna Luhring; Secretary Mark Girard; Commissioner Anthony Hanson; Commissioner Robert Wendorff; Attorney Marc Sebora; General Manager Jeremy Carter. Absent: Vice President Monty Morrow 1. Conflict of Interest None 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills A motion was made by Commissioner Wendorff, seconded by Secretary Girard to approve the Consent Agenda. Motion was unanimously carried. 3. Approve Financial Statements Jared Martig presented the financial statements explaining the total power cost adjustment for the year was roughly $435,000. GM Carter commented RUC's largest customers are using less power in 2016. After discussion, a motion was made by Commissioner Hanson, seconded by Secretary Girard to approve the financial statements. Motion was unanimously carried. 4. Open Forum 5. Communication a. City Administrator — Matthew Jaunich i. Working on the 2017 preliminary budget. ii. The land purchase for the apartment complex project closed yesterday. The City will be accepting bids in mid-September for the road work. b. Divisions i. Dan Lang — 1. Continuing to generate a lot. ii. Randy Blake — 1. Starting to work on the 2017 budget. iii. Dave Hunstad — 1. It is taking longer than expected to complete projects due to the rain. 2. Met with the City for planning road projects. iv. Jared Martig - 1. Had a conference call yesterday with Tom Kloss and BS&A regarding the new software system. BS&A's timeline to go "live" is June or July 2017. v. John Webster - 1. Started up Lafayette interconnect yesterday. The skids will be in the end of October. Built a temporary run so customer could receive gas. HUC has started to customer for transportation. vi. Brenda Ewing — 1. Nothing to report. c. Legal — Attorney Sebora i. Nothing to report. d. General Manager — Jeremy Carter i. Working on the preliminary 2017 budget and capital expenditures. ii. Reviewing contracts HUC has with MRES. iii. Reviewing EPA information. 6. Policies a. Review Policies i. Personal Use of Utility Facilities & Equipment ii. Cold Weather Rule iii. Terminating Electric/Natural Gas Service by Customer iv. Definition of Your Bill No changes were recommended. b. Approve Changes i. Retirement The revisions were made to help clarify current practice and provide proper documentation for personnel files. ii. Deferred Compensation The revisions were made to clarify the proper contact location to enroll in the Deferred Compensation Plan. A motion was made by Commissioner Girard, seconded by Commissioner Hanson to approve the changes to the Retirement and Deferred Compensation policies. Motion was unanimously carried. (Changes attached.) K 7. Unfinished Business a. Update on Pack Gas Discussions GM Carter and John Webster met with New Ulm staff to discuss their calculations. HUC has sent recalculated numbers to Heartland Corn and New Ulm for their review. HUC is waiting to hear back from both parties. President Luhring proposed a separate meeting be scheduled the last week of September to discuss capital dollars, policies and procedures. 8. New Business a. Approve Union Contract (IBEW Local 949) GM Carter presented the IBEW Local 949 Union Contract dated July 31, 2016 through June 30, 2019, for approval. The Board had a special closed meeting to discuss strategies and proposals brought forward from the Union. There were some language changes made in the new contract. The Union has ratified the approved tentative agreement. After discussion, a motion was made by Commissioner Hanson, seconded by Commissioner Wendorff to approve the IBEW Local 949 Union Contract dated July 31, 2016 through June 30, 2019. Motion was unanimously carried. (Contract attached). b. Approve Fee for Capacitor Material Disposal GM Carter presented the quote from T & R Service for the disposal of capacitor material (hazardous waste). After discussion, a motion was made by Commissioner Hanson, seconded by Secretary Girard to approve the fee for capacitor material disposal. Motion was unanimously carried. (Quote attached.) c. Approve Resolution #1013 for Mutual Aid Agreement GM Carter presented Resolution #1013 for Mutual Aid Agreement. The Federal Emergency Management Agency (FEMA) will reimburse costs arising from a city or municipal utility assisting another city or utility with mutual aid assistance when there is a prior executed written agreement between the damaged party and the assisting party authorized by the governing board. Resolution #1013 authorizes participation in the MMUA Mutual Aid Program, directs execution of the Mutual Aid Agreement and establishes authority for setting rates for reimbursement. In 2007, HUC signed a Mutual Aid agreement with MMUA. However, the governing board now needs to authorize being a part of the Mutual Aid Program through a formal resolution which will require a new executed agreement as well. A motion was made by Secretary Girard, seconded by Commissioner Wendorff to approve Resolution #1013 for Mutual Aid Agreement. Motion was unanimously carried. (Resolution #1013 attached.) 3 9. Adjourn There being no further business, a motion was made by Commissioner Hanson seconded by Secretary Girard to adjourn the meeting at 3:36 p.m. Motion was unanimously carried. Mark Girard, Secretary ATTEST: C Donna Luhring,lsresident 4 EXEMPT RETIREMENT Any employee who elects to retire shall give the Employer sixty (60) days' written notice of date that employee intends to retire. NON-EXEMPT RETIREMENT Any employee who elects to retire shall give the Employer sixty (60) days' written notice of date that employee intends to retire. EXEMPT DEFERRED COMPENSATION After completion of probationary period, HUC offers a 457 deferred compensation plan, which allows employees to place a portion of their earnings through payroll deduction into a tax deferred investment program. Taxes on money set aside are deferred until the time the money is withdrawn. HUC does not contribute to this 457 deferred compensation plan. For enrollment information, see the GustemeF/Human Relations Manage contact oavroll. NON-EXEMPT DEFERRED COMPENSATION After completion of probationary period, HUC offers a 457 deferred compensation plan, which allows employees to place a portion of their earnings through payroll deduction into a tax deferred investment program. Taxes on money set aside are deferred until the time the money is withdrawn. HUC does not contribute to this 457 deferred compensation plan. For enrollment information, see the Gustemer�''. w ^� Rc!zt*=!: Manage K contact oavroll. LABOR AGREEMENT HUTCHINSON UTILITIES COMMISSION AND INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL 949 JULY 1, 2016 THROUGH JUNE 30, 2019 TABLE OF CONTENTS ARTICLE I PURPOSE OF AGREEMENT....................................................................1 ARTICLEI1 RECOGNITION..........................................................................................1 ARTICLE III DEFINITIONS.............................................................................................1 ARTICLE IV EMPLOYER SECURITY...........................................................................2 ARTICLE V UNION SECURITY....................................................................................2 ARTICLE VI EMPLOYER AUTHORITY........................................................................3 ARTICLE VII NON-DISCRIMINATION..........................................................................3 ARTICLE VIII SAVINGS CLAUSE....................................................................................3 ARTICLE IX GRIEVANCE PROCEDURE......................................................................3 ARTICLEX DISCIPLINE................................................................................................6 ARTICLEXI SENIORITY................................................................................................6 ARTICLE XII RIGHT TO SUBCONTRACT.....................................................................6 ARTICLEXIII HOLIDAYS.................................................................................................7 ARTICLEXIV VACATIONS..............................................................................................7 ARTICLEXV SICK LEAVE..............................................................................................8 ARTICLEXVI CALL IN PAY.............................................................................................9 ARTICLE XVII HOURS OF WORK - OVERTIME...........................................................10 ARTICLE XVIII SHIFT DIFFERENTIAL...........................................................................11 ARTICLE XIX PROTECTIVE CLOTHING AND EQUIPMENT....................................11 ARTICLE XX HEALTH AND DISABILITY INSURANCE...........................................12 ARTICLE XXI RESIGNATION.........................................................................................12 ARTICLE XXII LEAVE OF ABSENCE.............................................................................12 i Table of Contents (cont.) ARTICLE XXIII FUNERAL LEAVE...................................................................................13 ARTICLE XXIV PAY DAY..................................................................................................14 ARTICLE XXV STAND BY................................................................................................14 ARTICLE XXVI JURY DUTY.............................................................................................14 ARTICLE XXVII RETIREMENT..........................................................................................14 ARTICLE XXVIII DURATION...............................................................................................14 ARTICLE XXIX HOURLY WAGE SCHEDULE AND APPRENTICESHIP SCALES ..... 14 ARTICLE XXX PROBATION.............................................................................................15 ARTICLE XXXI WAIVER....................................................................................................15 EXHIBIT "A" WAGE SCHEDULE..................................................................................16 EXHIBIT `B" APPRENTICESHIP SCALES...................................................................18 MEMORANDUM OF AGREEMENT (Four 10 Hour Work Schedule) ..19 LETTER OF AGREEMENT (HSA Contribution)....................................22 LETTER OF AGREEMENT (Standby Pay).............................................24 MEMORANDUM OF AGREEMENT (Health Care Savings Plan)......... 25 ii ARTICLE I PURPOSE OF AGREEMENT This AGREEMENT is entered into as of July 1, 2016, between HUTCHINSON UTILITIES COMMISSION, hereinafter called the EMPLOYER, and the INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL 949, hereinafter called the UNION. It is the intent and purpose of this AGREEMENT to achieve and maintain sound, harmonious, and mutually beneficial working and economic relations between the parties hereto; and to put in writing: 1.1 A grievance procedure, and 1.2 The terms and conditions of employment. 1.3 Subject to the EMPLOYER'S Affirmative Action Plan, seniority shall be the determining criterion for promotions and transfers provided qualifications and abilities among employees are equal. ARTICLE II RECOGNITION 2.1 The EMPLOYER recognizes the UNION as the exclusive representative of an appropriate bargaining unit consisting of. all employees of the Hutchinson Utilities Commission except: (1) supervisory and confidential employees; (2) part-time employees whose service does not exceed the lesser of 14 hours per week or 35 percent of the normal work week in the employee's appropriate unit and; (3) employees whose positions are basically temporary or seasonal in character and; (a) are not for more than 67 working days in any calendar year; or (b) are not for more than 100 working days in any calendar year and the employees are under the age of 22, are full-time students enrolled in a nonprofit or public educational institution prior to being hired by the employer, and have indicated, either in an application for employment or by being enrolled at an educational institution for the next academic year or term, an intention to continue as students during or after their employment. 2.2 In the event the EMPLOYER and the UNION are unable to agree as to the inclusion of a new modified job class, the issue shall be submitted to the Bureau of Mediation Services for determination. ARTICLE III DEFINITIONS 3.1 UNION: The International Brotherhood of Electric Workers, Local 949. 3.2 UNION MEMBER: A member of the International Brotherhood of Electrical Workers, Local 949. 3.3 EMPLOYER: The Hutchinson Utilities Commission. 3.4 UNION OFFICER: Officer elected or appointed by the International Brotherhood of Electrical Workers, Local 949. 3.5 OVERTIME: Work performed at the express authorization of the EMPLOYER in excess of the employee's scheduled shift. 3.6 SCHEDULED SHIFT: A consecutive period including paid rest breaks. 3.7 FULL-TIME EMPLOYEE: An employee who is regularly scheduled to work forty (40) hours per week. 3.8 PART-TIME EMPLOYEE: An employee who is regularly scheduled to work less than forty (40) hours per week. ARTICLE IV EMPLOYER SECURITY The UNION agrees that during the life of this AGREEMENT that the UNION will not cause, encourage, participate in or support any strike, slow -down or other interruption of or interference with the normal functions of the EMPLOYER. ARTICLE V UNION SECURITY 5.1 The EMPLOYER shall deduct from the wages of employees who authorize such a deduction in writing an amount necessary to cover monthly UNION dues. Such monies shall be remitted as directed by the UNION. UNION to supply authorization cards. 5.2 The UNION shall designate employees from the bargaining unit to act as a steward and an alternate and shall inform the EMPLOYER in writing of such choice and changes in the position of steward and/or alternate. 5.3 The EMPLOYER shall make space available on the employee bulletin board for posting UNION notice(s) and announcement(s). 5.4 The UNION agrees to indemnify and hold the EMPLOYER harmless against any and all claims, suits, orders or judgments brought or issued against the EMPLOYER as a result of any action taken or not taken by the EMPLOYER under the provision of the ARTICLE. 2 ARTICLE VI EMPLOYER AUTHORITY 6.1 The EMPLOYER retains the full and unrestricted right to operate and manage all employees, facilities, and equipment, provided, however, that employer's operation of equipment shall not result in loss of regularly scheduled hours to employee; to establish functions and programs; to set and amend budgets; to determine the utilization of technology; to establish and modify the organizational structure; to select, direct, and determine the number of personnel; to establish work schedules, and to perform any inherent managerial functions not specifically limited by the AGREEMENT. 6.2 Any matter or policy, whether or not considered to be a term and condition of employment, not specifically established or modified by this AGREEMENT shall remain solely within the discretion of the EMPLOYER to modify, establish, or eliminate; provided, however, that prior to any such modification, establishment, or elimination, the EMPLOYER shall meet and confer with employees to exchange views and concerns. ARTICLE VII NON-DISCRIMINATION The EMPLOYER and the UNION agree that no employee shall be discriminated against under the provisions of the AGREEMENT on any basis prohibited by law. ARTICLE VIII SAVINGS CLAUSE If any provision of the AGREEMENT is declared by proper legislative, administrative or judicial authority to be unlawful, unenforceable or not in accordance with applicable Civil Service rules, or law, all other provisions of this AGREEMENT shall remain in full force and effect for the duration of this AGREEMENT. ARTICLE IX GRIEVANCE PROCEDURE 9.1 DEFINITION OF A GRIEVANCE A grievance is defined as a dispute or disagreement as to the interpretation or application of the specific terms and conditions of this AGREEMENT. 9.2 UNION REPRESENTATIVE The EMPLOYER will recognize REPRESENTATIVES designated by the UNION as the grievance representatives of the bargaining unit having the duties and responsibilities established by this ARTICLE. The UNION shall notify the EMPLOYER in writing of the names of such UNION REPRESENTATIVES and their successors when so designated as provided by 5.2 of this AGREEMENT. 9.3 PROCESSING OF A GRIEVANCE 9.31 Whenever any employee or small group of employees have a grievance, they shall meet on an informal basis with the employees or employee's immediate supervisor in an attempt to resolve the grievance within ten (10) days after the grievance occurred or ten (10) days after the employee(s), through the use of reasonable diligence, should have had knowledge of the occurrence that gave rise to the grievance. 9.32 If the grievance is not resolved within fifteen (15) days of the first informal meeting, the grievance may be reduced to writing by the exclusive representative and served upon the Utilities Manager. Service must be made within fifteen (15) days of the last informal meeting. 9.4 Grievance presented to management shall be discussed and answered in writing by management within fifteen (15) calendar days after a grievance meeting has been held. 9.5 Appeals by the UNION from the EMPLOYER'S decision shall be presented to the EMPLOYER within fifteen (15) calendar days. 9.6 WAIVER If a grievance is not presented within the time limits set forth above, it shall be considered "waived." If a grievance is not appealed to the next step within the specified time limit or any agreed extension thereof, it shall be considered settled on the basis of the EMPLOYER'S last answer. If the EMPLOYER does not answer a grievance or an appeal thereof within the specified time limits, the UNION may elect to treat the grievance as denied at that step and immediately appeal the grievance to the next step. The time limit in each step may be extended by mutual agreement of the EMPLOYER and the UNION in each step. 9.7 The disposition of grievance presented in writing shall be endorsed by the appropriate UNION and EMPLOYER representative. 9.8 Grievances which cannot be adjusted by the parties may be referred to arbitration by the UNION. Such referral shall be in writing and made within the ten (10) calendar days after the EMPLOYER'S answer or termination of the time limit for the EMPLOYER'S answer. 9.9 The EMPLOYER and employee Representative shall endeavor to select a mutually acceptable arbitrator to hear and decide the grievance. If the EMPLOYER and the employee Representative are unable to agree on an arbitrator, they may request a list of five (5) names from the Bureau of Meditation Services. The parties shall alternately strike names from the list of five (5) arbitrators until only one (1) remains. n 9.10 The remaining Arbitrator shall hear and decide the grievance. If the parties are unable to agree on who shall strike the first name, the question shall be decided by the flip of the coin. 9.11 ARBITRATOR'S AUTHORITY 9.111 The arbitrator shall have no right to amend, modify, nullify, ignore, add to, or subtract from, the terms and conditions of this AGREEMENT. The arbitrator shall consider and decide only the specific issue(s) submitted in writing by the EMPLOYER and the UNION, and shall have no authority to make a decision on any other issue not so submitted. 9.112 The arbitrator shall be without power to make decisions contrary to, or inconsistent with, or modifying or varying in any way the application of laws, rules, or regulations having the force and effect of law. The arbitrator's decision shall be submitted in writing thirty (30) days following close of the hearing or the submission of briefs by the parties, whichever be later, unless the parties agree to an extension. The decision shall be binding on both the EMPLOYER and the UNION and shall be based solely on the arbitrator's interpretation or application of the express terms of this AGREEMENT and to the facts of the grievance presented. 9.113 The fees and expenses of the arbitrator's services and proceedings shall be borne equally by the EMPLOYER and the UNION; provided, if the grievance is clearly decided in favor of the UNION or the EMPLOYER, then the losing party shall be responsible for all the arbitrator's fees and expenses. Each party shall be responsible for compensating its own representatives and witnesses. If either party desires a verbatim record of the proceedings, it may cause such a record to be made, providing it pays for the record. If both parties desire a verbatim record of the proceedings, the cost shall be shared equally. 9.12 ELECTION OF REMEDIES If as a result of the written EMPLOYER'S response in step two, the grievance remains unresolved, and if the grievance involves the suspension, demotion or discharge of an employee who has completed the required probationary period, the grievance may be appealed either to the next step of this grievance procedure or to a procedure such as Veterans Preference. If appealed to any procedure other than the next step of this grievance procedure, the grievance is not subject to the arbitration procedure set forth in this ARTICLE. The aggrieved employee shall indicate in writing which procedure is to be utilized, arbitration as set forth in this ARTICLE or another appeal procedure, and shall sign a statement to the effect that the choice of any other hearing precludes the aggrieved employee from making a subsequent appeal to arbitration as provided in this ARTICLE. 5 An employee pursuing a statutory remedy under the jurisdiction of the United States Equal Employment Opportunity Commission is not precluded from also pursuing an appeal under this grievance procedure. If a court of competent jurisdiction rules contrary to Board of Governors or if Board of Governors is judicially or legislatively overruled, this paragraph shall be deleted. ARTICLE X DISCIPLINE Employees that have completed the required probationary period shall be disciplined or discharged only for just cause. The UNION shall have the right to challenge the propriety of a written reprimand, suspension or dismissal of an employee who has completed the initial probationary period in accordance with ARTICLE IX, GRIEVANCE PROCEDURE. ARTICLE XI SENIORITY 11.1 Seniority is defined as an employee's length of continuous service. 11.2 The EMPLOYER shall maintain and post the seniority dates of employment as of January 1, each calendar year. Employee shall have thirty (30) days to challenge posting. 11.3 Subject to the EMPLOYER'S Affirmative Action Plan, seniority shall be the determining criterion for layoffs provided qualifications and abilities among employees are equal. Laid off employees shall have recall rights for two (2) years. Employees notified by registered mail at the employee's last known address shall have ten (10) working days to return to work or lose recall rights. Regular employees on layoff shall be recalled in order of seniority. 11.4 Job vacancies shall be posted for ten (10) working days. Employees desiring to be considered must so indicate within the posting period. All promoted employees shall serve a six (6) month probationary period during which the promoted employee may be placed back in the employee's previous job classification at the sole discretion of the EMPLOYER without loss of seniority. ARTICLE XII RIGHT TO SUBCONTRACT Nothing in this AGREEMENT shall prohibit or restrict the right of the EMPLOYER from subcontracting work performed by employees covered by this AGREEMENT providing no layoff shall occur for lack of work. 2 ARTICLE XIII HOLIDAYS 13.1 The following days are paid holidays: New Year's Day Labor Day Martin Luther King Day Veteran's Day President's Day Thanksgiving Day Memorial Day Christmas Fourth of July 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; and, in addition, there shall be two (2) floating holidays determined by mutual agreement between management and employee. If Christmas Day falls on a Saturday, Sunday or Monday, then there shall be no Christmas Eve Day holiday but there shall be three (3) floating holidays determined. 13.2 In order to qualify for the eight (8) hours of straight time holiday pay, for the holiday not worked, it is required that the employee shall work the last scheduled work day or shift prior to the first scheduled work day following the holiday, unless employee is absent before or after a holiday for such reasons as vacation, sick leave, jury duty or death in immediate family. ARTICLE XIV VACATIONS 14.1 Full-time employees shall receive vacation time with pay according to the following schedule: Years Emnloved Vacation Years Emnloved Vacation After 6 months 20 hours 14 152 hours 1 40 hours 15 160 hours 2 80 hours 16 168 hours 7 120 hours 17 176 hours 11 128 hours 18 184 hours 12 136 hours 19 192 hours 13 144 hours 20 200 hours 14.2 Vacation time will be scheduled with mutual agreement between employee and EMPLOYER. 7 14.3 Earned vacation shall be paid at the time of an employee's termination. 14.4 Employees who are on vacation, upon proof of a disabling accident or disabling illness, shall have their vacation time cease; and they shall be placed on sick leave with the remaining vacation to be rescheduled at a later date. 14.5 An employee may carry over up to forty (40) hours of accrued vacation into the subsequent year. If the Employer determines that due to workload, an employee cannot utilize sufficient accrued vacation, by mutual agreement between the employee and the Employer, a temporary extension beyond the 40 hour maximum may be granted. ARTICLE XV SICK LEAVE 15.1 Full-time employees, upon completion of their probationary period, shall be granted eight (8) hours per month of sick leave. Such leave cannot be accumulated beyond 720 hours. Thereafter, after the accumulation of 720 hours a pay back of 1/3 of the amount over 720 hours will be made annually on or about February 1. An employee will retroactively receive sick leave time accrued. 15.2 Employees may be required to present evidence satisfactory to the Employer of inability to work due to illness or accident. 15.3 Employees must adopt such remedial measures as may be commensurate with his disability and permit such reasonable examination and inquiries by the EMPLOYER'S medical representative or other suitable representative as, in the EMPLOYER'S judgment, may be necessary to ascertain employee's condition. 15.4 If an employee becomes ill and must stay home from work, he/she shall notify the supervisor before the work day begins. 15.5 If an employee becomes ill during the regular work day, he/she shall notify the supervisor that it is necessary to leave due to illness. 15.6 Benefits under this plan will be reduced by any future benefits provided by any law, Social Security Benefit, or Unemployment Insurance so as to prevent duplication of benefits, should the various benefits provided under the above mentioned laws or agencies be interpreted to pay an allowance in lieu of an employee's wage when he is off work due to illness or injury. 15.7 No sick leave credit will be accrued while an employee is away from work due to leave of absence, sickness, or disability; nor will sick leave pay be allowed during leaves of absence or during layoffs except as provided in paragraphs below. 15.8 Sick leave pay credit shall cease on the day preceding the day on which the employee retires under the Retirement Plan. If an employee becomes ill or is injured while on vacation, which vacation is scheduled to end on the date of employee's retirement, then the scheduled vacation time is counted on vacation; and if the disability continues beyond the scheduled time of the vacation, the sick leave pay (any remaining sick leave credit) will begin on the first consecutive scheduled working day after the end of the scheduled vacation. 15.9 Employees who are injured while engaged in after hours employment of others or while self-employed, shall not be covered under the EMPLOYER'S Sick Leave Policy outlined. 15.10 The Commission agrees to comply with the following Worker's Compensation regulations. If employees of the department have, at the time of compensative injury, accumulated credits under their vacation or sick leave plan, the Commission will provide for the payment of their full gross salary during the period of disability, providing all payments as made under Worker's Compensation shall be retained by the employee. However, the additional payments made to the employee over and above that paid by Worker's Compensation shall not exceed the amount of credits which an employee is entitled to from such vacation or sick leave accumulated by said employee and the employee's vacation or sick leave account shall be charged only with the difference between Worker's Compensation payment and his regular salary. 15.11 A disability leave of absence for up to two (2) years shall be granted to any employee at such time as he had exhausted all of his accumulated sick leave benefits and in the event his illness or disability continues after such time. Upon request by the EMPLOYER at reasonable intervals, the employee shall furnish a doctor's certificate certifying as to employee's inability to return to work because of such illness or disability. 15.12 Upon retirement, or upon death before retirement, employees shall be paid for any unused sick leave which has been accumulated in the amount of 1/3 of the amount over 240 hours. If the employee resigns or is dismissed, the above payment shall not be made. In case of death during employment, the unused sick leave shall be paid to his/her estate on the same ratio as above. 15.13 The Employer shall comply with the Family and Medical Leave Act, the Minnesota Parental Leave Act and the Americans with Disabilities Act. ARTICLE XVI CALL IN PAY Employees who have been called in for emergency work after completing their regular shift shall be guaranteed a minimum of two (2) hour's pay at the applicable overtime rate. It is understood that this call-in provision is not an extension of the regular work day and requires the employee to make an additional trip for the EMPLOYER. It is further understood that an employee may be 6 called out more than once during a given two (2) hour period. The minimum call -out shall not apply to calls two (2) hours before the regular starting time. ARTICLE XVII HOURS OF WORK - OVERTIME 17.1 The regular workweek shall begin at 12:01 a.m. on MONDAY and terminate at 12:00 p.m. midnight on SUNDAY. The regular work period for all employees other than shift workers shall be five (5) consecutive eight (8) hour days beginning on Monday and ending on Friday for a total of forty (40) hours per week. The regular daytime hours for other than shift workers and custodians shall be between 7:30 a.m. and 4:00 p.m., with one-half (1/2) hour for lunch. The regular hours of work for shift workers engaged in performing the classification of work where service is required twenty-four (24) hours per day and seven (7) days per week, shall be as follows: Shift workers shall work in accordance with a posted working schedule of a combination of days on duty with two (2) or three (3) days off in such a way that over a period of a calendar year, a shift worker will work no more than an average of forty (40) hours per workweek. Customer Service Representatives shall work 7:30 a.m. to 4:00 p.m. year round. 17.2 Any shift worker requesting time off for personal reasons must make arrangements with a fellow employee to relieve them. Other employees requesting time off for personal reasons will be subject to payroll deduction for the amount of time taken off. Time off for personal reasons is subject to permission by the department head or designee. 17.3 When it is required that employees continue work two (2) hours after the regular quitting time, they shall be furnished a meal at the EMPLOYER'S expense as soon as possible thereafter, and at intervals of not more than six (6) hours thereafter, while they continue to work. Meals eaten at home will not be paid for the employee by the EMPLOYER. 17.4 If an employee works four (4) or more hours overtime and is released from work, six (6) hours shall elapse before the employee returns to work without loss of a regular work day's pay. 17.5 It is understood that because of the nature of the municipal utility business, work schedules may be established by the EMPLOYER. The regular working hours may be changed by EMPLOYER by twenty-four (24) hour advance notice to employee. 17.6 Overtime at time and one-half rates shall be paid for all hours worked in excess of eight (8) hours per day or forty (40) hours per week except that shift workers shall be compensated at overtime rates for all hours worked in excess of their regular posted schedule. 17.7 Employees, other than shift workers, required to work on a recognized holiday shall receive double time for all hours worked. 10 17.8 Shift workers required to work on the actual holiday shall receive holiday pay plus double time. Shift workers required to work on the observed holiday shall receive holiday pay plus regular straight time pay. By mutual agreement between EMPLOYER and employee, shift workers shall have the option of scheduling a day off in lieu of a holiday rather than receiving overtime pay. 17.9 All overtime shall be distributed as nearly equal as practicable among the employees in the respective classifications in each department. 17.10 Employees shall not be required to take time off for overtime worked or to be worked. 17.11 Shift workers will not be allowed overtime for work performed on Sundays when such work is performed on their regular shift. Employees other than shift workers, required to work overtime on a Sunday, shall receive double time. The shift worker's second day off shall be considered equivalent to Sunday, and they shall receive double time for overtime worked on that day. 17.12 An employee temporarily assigned to a higher paid classification shall receive the rate of pay for such higher classification for all hours worked during the entire period of such assignment, providing that the employee works a minimum of four (4) hours or more. 17.13 All hours worked in response to a MMUA coordinated mutual -aid request will be paid additional premium pay at the rate of half the regular straight time hourly rate of pay for a normal eight hour shift Monday through Friday regardless of time of day. Regular overtime shall be paid and double time shall be paid for hours worked on Sundays and holidays in accordance with Article XVII. ARTICLE XVIII SHIFT DIFFERENTIAL A shift differential of 3.0% of the employee's regular hourly rate shall be paid for hours 4:00 p.m. to 12:00 midnight. A shift differential of 3.5% of the employee's regular hourly rate shall be paid for hours from 12:00 a.m. to 8:00 a.m. A shift differential will not be allowed for time not worked such as vacation, sick leave, etc. ARTICLE XIX PROTECTIVE CLOTHING AND EQUIPMENT The EMPLOYER will provide all required safety clothing and equipment. An amount not to exceed $200 per year will be allowed toward uniform wearing apparel of Customer Service employees. The items of uniform wearing apparel eligible for the reimbursement shall be agreed upon between employees and the General Manager. 11 The Employer will provide each Operator with uniforms. ARTICLE XX HEALTH AND DISABILITY INSURANCE Effective January 1, 2011 all employees shall be covered by the high deductible health plan with an HSA account. The EMPLOYER shall contribute eighty percent (80%) of the premium cost for the high deductible health insurance plan provided by the EMPLOYER for single coverage. For each eligible employee who selects family coverage, the EMPLOYER shall contribute eighty percent (80%) of the premium cost for family coverage in the high deductible health insurance plan. The remaining twenty percent (20%) of the premium for single and family insurance coverage shall be paid by the EMPLOYEE through payroll deduction. The Employer shall contribute $4,000 annually to employees who select family coverage and $2,000 annually for employees who select single coverage into the HSA. Said payments are made on a prorata monthly basis. The Employer shall pay the premium for a long-term disability plan with a 90 day elimination period. In the event the health insurance provisions of this Agreement fail to meet the requirements of the Affordable Care Act and its related regulations or cause the Employer to be subject to a penalty, tax or fine, the Union and the Employer will meet immediately to bargain over alternative provisions so as to comply with the Act and avoid any penalties, taxes or fines for the Employer. ARTICLE XXI RESIGNATION An employee may resign at any time, and when so resigning, must give at least two (2) weeks notice of his intention in order to give the EMPLOYER time to fill the vacancy. Resignation shall be filed with the Utility Manager. Upon resignation, the employee shall forfeit all seniority. Any vacation leave due an employee when he resigns will be paid. ARTICLE XXII LEAVE OF ABSENCE 22.1 Leave of absence with pay may be granted by the General Manager to permit an employee or department head to attend professional meetings, conferences or trade schools that are in the interest of the EMPLOYER or other justifiable reasons. No overtime will be paid while an employee is attending such meetings or conventions. Each day's attendance shall be considered as an eight (8) hour straight time pay day. Leave of absence without pay may be granted by the EMPLOYER Manager when requested by a regular employee when such a leave is deemed to be justified. Such leaves may be granted when due to extended illness, the accumulated sick leave has been used 12 up, for the extension of vacation time where circumstances will permit, or other similar purposes. 22.2 Employees who are members of a Reserve Force of the USA or of this State and who are ordered by the appropriate authorities to attend a training program or perform other duties under the supervision of the USA or of this State, shall be granted leave time up to a maximum of fifteen (15) days per year, with pay. 22.3 Any employee who enters into active service in the Armed Forces of the USA while in the service of the EMPLOYER shall be granted a leave of absence, without pay, for the period of military service. The employee shall be entitled to be reinstated to the position he vacated or any equivalent position provided he files a written request with EMPLOYER within ninety (90) days after completion of military service. 22.4 No leave of absence shall be granted for the purpose of looking for a new job or other similar reason, and any industrial employment without the sanction of the Utility Manager during any leave of absence shall automatically cause a forfeiture of seniority rights. 22.5 Employees whose duties permit may be allowed to absent themselves with pay (provided they receive no compensation for such services) for the purpose of participating in duties of a Public Governmental organization, at the discretion of the Manager. Attendance at any UNION meeting during working hours will not be permitted without the written approval of the Utilities Manager. ARTICLE XXIII FUNERAL LEAVE 23.1 Employees may be allowed up to forty (40) hours leave paid by the EMPLOYER at the employee's straight time rate for the purpose of attending a funeral of a member of the employee's immediate family. Funeral leave days will not be deducted from sick leave. The employee's immediate family is defined as: spouse, significant other, parent, step- parent, guardian, child, step -child, sibling, grandparent, grandchild and any in-law. It is understood that payment under the above provisions is only for a day or days when the employee was scheduled to work and would have worked except for the death of such relative. 23.2 If an employee is called for pallbearers service, or to drive a car for a funeral, leave of absence will be granted for a period necessary, limited to four (4) hours, to perform this service- without loss of pay, provided the employee received no compensation for such service. 13 ARTICLE XXIV PAY DAY Pay days will be bi-weekly on Thursday following the end of the regular pay period. When pay day falls on holidays, employees shall receive their pay on Wednesday. ARTICLE XXV STAND BY Employees who are required to provide weekly standby shall receive nine (9) hours' pay at time and one-half in addition to overtime worked. ARTICLE XXVI JURY DUTY When a regular full-time employee has been called upon for jury duty by either the State or Federal Courts, and has been absent from work because of such jury service, he shall be paid his regular salary by the Commission with the understanding that at the time of completion of his jury service, he shall present his jury service checks to the department; and that the amount of such checks, less the amount included for traveling expenses, shall be deducted from their next regular pay check. ARTICLE XXVII RETIREMENT 27.1 Any employee who elects to retire shall give the EMPLOYER sixty (60) days notice of date that employee intends to retire. ARTICLE XXVIII DURATION This AGREEMENT shall be effective July 1, 2016, through June 30, 2019, subject to the right on the part of the EMPLOYER or the UNION to open or terminate this AGREEMENT by written notice to the other party no later than sixty (60) days prior to the expiration of this AGREEMENT. ARTICLE XXIX HOURLY WAGE SCHEDULE AND APPRENTICESHIP SCALES Hourly wages shall be paid according to attached Exhibits "A" and `B". 14 ARTICLE XXX PROBATION Effective the first day of the first payroll period following the Utility Commission adoption of this AGREEMENT, new employees shall be considered to be on probation for the first six (6) months of continuous employment. During the probationary period, the EMPLOYER may dismiss such employees. Such action shall not be subject to the grievance or arbitration provisions of this AGREEMENT. Upon completion of the probationary period of employment, an employee shall have their seniority date established retroactive to their first date of continuous employment. ARTICLE XXXI WAIVER This AGREEMENT represents the complete and total AGREEMENT between the parties. Any and all prior AGREEMENTS, practices, policies, rules and regulations regarding terms and conditions of employment, to the extent inconsistent with the provisions of the AGREEMENT, are hereby superseded. IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT on the _ day of 2016. FOR HUTCHINSON UTILITIES COMMISSION President Secretary 15 FOR INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL NO 949 President Business Manager EXHIBIT "A" Electric Division 16 7/1/16 1/1/17 7/1/1/7 1/1/18 7/1/18 1/1/19 Maintenance Electrician I $34.65 $35.34 $36.05 $36.77 $37.51 $38.26 Maintenance Electrician Il $33.19 $33.85 $34.53 $35.22 $35.92 $36.64 Crew Chief - Maintenance $37.01 $37.75 $38.51 $39.28 $40.07 $40.87 Maintenance Mechanic I $33.18 $33.84 $34.52 $35.21 $35.91 $36.63 Maintenance Mechanic II $31.59 $32.22 $32.86 $33.52 $34.19 $34.87 Groundsperson I 7/1/16 1/1/17 7/1/17 1/1/18 7/1/18 1/1/19 Crew Chief/Systems Controller $39.43 $40.22 $41.02 $41.84 $42.68 $43.53 System Controller I $35.73 $36.44 $37.17 $37.91 $38.67 $39.44 System Controller II $34.21 $34.89 $35.59 $36.30 $37.03 $37.77 Crew Chief/Operations Engineer $37.01 $37.75 $38.51 $39.28 $40.07 $40.87 Operations Engineer I $33.18 $33.84 $34.52 $35.21 $35.91 $36.63 Operations Engineer H $31.59 $32.22 $32.86 $33.52 $34.19 $34.87 16 7/1/16 1/1/17 7/1/17 1/1/18 7/1/18 1/1/19 Crew Chief - Electric Dept. $40.45 $41.26 $42.09 $42.93 $43.79 $44.67 Lineperson I $36.68 $37.41 $38.16 $38.92 $39.70 $40.49 Lineperson II $33.71 $34.38 $35.07 $35.77 $36.49 $37.22 Engineering Technician I $31.95 $32.59 $33.24 $33.90 $34.58 $35.27 Engineering Technician Il $30.66 $31.27 $31.90 $32.54 $33.19 $33.85 Groundsperson I $29.51 $30.10 $30.70 $31.31 $31.94 $32.58 Groundsperson II $28.46 $29.03 $29.61 $30.20 $30.80 $31.42 7/1/16 1/1/17 7/1/17 1/1/18 7/1/18 1/1/19 Crew Chief - Electric Meter Dept. $37.14 $37.88 $38.64 $39.41 $40.20 $41.00 Electric Meter Technician I $33.29 $33.96 $34.64 $35.33 $36.04 $36.76 Electric Meter Technician 11 $31.95 '$32.59 $33.24 $33.90 $34.58 $35.27 16 Crew Chief - Gas Dept. Welder Serviceperson I Welder Serviceperson II Gas Meter Service I Gas Meter Service II Natural Gas Division 7/1/16 1/1/17 7/1/17 1/1/18 7/1/18 1/1/19 $37.01 $37.75 $38.51 $39.28 $40.07 $40.87 $33.29 $33.96 $34.64 $35.33 $36.04 $36.76 $31.95 $32.59 $33.24 $33.90 $34.58 $35.27 $33.29 $33.96 $34.64 $35.33 $36.04 $36.76 $31.95 $32.59 $33.24 $33.90 $34.58 $35.27 Customer Services Division 7/1/16 1/1/17 7/1/17 1/1/18 7/1/18 1/1/19 Maintenance Engineer/Meter Reader $24.28 $24.77 $25.27 $25.78 $26.30 $26.83 Customer Service Representative $25.71 $26.22 $26.74 $27.27 $27.82 $28.38 17 EXHIBIT "B" Schedule No. 4 — 4 Years Operating Engineer II Maintenance Mechanic Maintenance Electrician Lineperson Engineering Technician Electric Meter Technician Welder/Serviceperson Meter Repair/Service Schedule No. 2 — 2 Years Meter Reader Customer Service Rep. System Controller II Schedule No. 1— 1 Year Groundsperson Maintenance Engineer Movement through apprenticeship schedule shall be at discretion of Employer. If an employee is accelerated through the schedule, written notice to the Union shall be provided by the employer. 18 HUTCHINSON UTILITIES COMMISSION APPRENTICESHIP SCALES Schedule Schedule Schedule Schedule No. 4 No. 3 No. 2 No. 1 1 st 6 months I 75.0% I 80.0% I 90.0% I 90.0% 2nd 6 months I 77.5% I 82.5% I 92.5% I 95.0% 3rd 6 months I 80.0% I 85.0% I 95.0% 4th 6 months ' 82.5% I 87.5% I 97.5% I 5th 6 months I 85.0% I 90.0% 6th 6 months I 87.5% I 92.5% I I 7th 6 months I 90.0% I I 8th 6 months I 92.5% I Schedule No. 4 — 4 Years Operating Engineer II Maintenance Mechanic Maintenance Electrician Lineperson Engineering Technician Electric Meter Technician Welder/Serviceperson Meter Repair/Service Schedule No. 2 — 2 Years Meter Reader Customer Service Rep. System Controller II Schedule No. 1— 1 Year Groundsperson Maintenance Engineer Movement through apprenticeship schedule shall be at discretion of Employer. If an employee is accelerated through the schedule, written notice to the Union shall be provided by the employer. 18 MEMORANDUM OF AGREEMENT This Memorandum of Agreement is entered into between Hutchinson Utilities Commission (hereafter "Employer") and the International Brotherhood of Electrical Workers, Local 949 (hereafter "Union") relating to the implementation of a four (4) ten (10) hour day work schedule. WHEREAS, the Employer and the Union are parties to a Collective Bargaining Agreement effective July 1, 2016 through June 30, 2019; and WHEREAS, the Employer and the Union desire to enter into an agreement to implement a four (4) day/ten (10) hour work schedule for bargaining unit members other than customer service and shift workers. NOW, THEREFORE, the parties hereto have executed this Memorandum of Agreement as follows: 1. Effective July 1, 2016 through June 30, 2019, Employer and Union agree to implement a four (4) day/ten (10) hour work schedule for all employees in the bargaining unit excluding customer service and shift workers. 2. For the duration of this Memorandum of Agreement, the specific provisions set forth herein shall supersede any conflicts with the provisions as set forth in the 2016-2019 Collective Bargaining Agreement 3. The specific application of the four (4) day/ten (10) hour work schedule shall be as follows: a. The work schedule shall extend from Monday through Friday. The work day will be covered by alternating the employees to work a forty (40) hour work week by working four (4) days a week, either Monday through Thursday or Tuesday through Friday. 19 b. The routine and the days which employees will work will be at the discretion of the director/managers of the particular divisions but will follow a rotating schedule. C. The work day will commence no earlier than 6:30 a.m. and will extend no later than 5:00 p.m., with a 30 minute lunch break. Any work performed prior to 6:30 a.m. or after 5:00 p.m., Monday through Friday, will be classified as beyond normal working hours and will be handled on an overtime basis. d. Sick leave will continue to be accumulated on an eight hour per month basis and will be utilized on an hourly basis. Therefore, if an employee is absent due to illness for an entire work day, the employee will be utilizing ten (10) hours of sick leave for that day. e. Vacations, comp time and floating holidays when taken on a scheduled 10 -hour work day will be utilized accordingly. Floating holidays will be counted as an eight hour period plus an employee may elect to utilize two hours from a floating holiday or comp time to make up the time for that day. Vacations will be scheduled on a 10 -hour day so that vacations can be taken for a 40 hour week. Comp time will also be taken accordingly. Vacations, comp time and floating holidays will be treated on an hourly basis. f. Scheduled holidays will be taken on the days that they are scheduled in the Collective Bargaining Agreement on an eight hour basis. The remainder of the week will be completed by working three 10 -hour days resulting in a total of 38 hours. In such instances, the two hours of time may be made up during the work week, taken from a floating holiday, or taken from comp time. In addition, the employee may elect not to make up the time. g. On-call compensation will begin on Thursday at 5:00 p.m. and conclude at 6:30 a.m. the following Thursday. Employees will continue to receive the same on- call compensation as set forth in the current Collective Bargaining Agreement. h. For the duration of this Memorandum of Agreement compensatory time bank of up to 50 hours a year shall be established. Employees may accrue and use compensatory time throughout the course of a year as long as said compensatory time does not exceed 50 hours. Employees may carry over 50 hours of compensatory time from one calendar year to the next. For the duration of this Memorandum of Agreement, employees will be compensated for overtime for all hours worked beyond the ten (10) hour day or forty (40) hour work week. j. For the definition of a "day" in the Funeral Leave article, a "day" shall mean ten (10) hours for employees working the ten (10) hour work schedule. 20 4. This Memorandum of Agreement represents the complete and total agreement between the parties. IN WITNESS WHEREOF, the parties have caused this Memorandum of Agreement to be executed this day of FOR HUTCHINSON UTILITIES COMMISSION President Secretary 21 , 2016. FOR INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL 949 President Business Manager LETTER OF AGREEMENT This Letter of Agreement is entered into between the Hutchinson Utilities Commission (hereafter "Utility") and the International Brotherhood of Electrical Workers, Local No. 949 (hereafter "Union"). WHEREAS, the Utility and the Union are parties to a collective bargaining agreement; and; WHEREAS, Article XX, Health and Disability Insurance, sets forth the Utility's contribution toward the single and family premium cost for the high deductible insurance plan with an HSA. It provides that employees participating in the high deductible family plan will receive $4,000 annually into the HSA and employees participating in the high deductible single plan will receive $2,000 annually into the HSA. WHEREAS, based on Internal Revenue Service rules, an employee must be an eligible individual to qualify for an HSA including generally having no other health coverage that is not a high deductible health plan. WHEREAS, veterans of the United States armed forces who receive medical benefits from the Veterans Administration (VA) or employees who are enrolled in TRICARE, which is health insurance available to active duty and retired service and reserve members and their dependents, are therefore not eligible to qualify for an HSA. NOW, THEREFORE, the parties hereto agree as follows: 1. Effective January 1, 2011, a veteran who receives medical benefits from the Veterans Administration (VA) or employees who are enrolled in TRICARE who participates in the high deductible family plan, but who is not eligible to qualify for a HSA, shall receive $4,000 annually in two equal installments in lieu of said monies being deposited in a HSA. 2. Effective January 1, 2011, a veteran who receives medical benefits from the Veterans Administration (VA) or employees who are enrolled in TRICARE who participates in the high deductible single plan, but who is not eligible to qualify for a HSA, shall receive $2,000 annually in two equal installments in lieu of said monies being deposited in a HSA. This Letter of Agreement represents the full and complete agreement between the parties regarding this matter. 22 IN WITNESS WHEREOF, the parties have caused this Letter of Agreement to be executed this day of , 2016. FOR THE UNION: Date Date Date 23 FOR THE UTILITY: Date Date Date LETTER OF AGREEMENT This Letter of Agreement is entered into between the Hutchinson Utilities Commission (hereafter "Utility") and the International Brotherhood of Electrical Workers, Local No. 949 (hereafter "Union"). WHEREAS, the Utility and the Union are parties to a collective bargaining agreement; and; WHEREAS, the Utility and the Union agreed to discuss accruing and using Comp time for standby pay hours; NOW, THEREFORE, the parties hereto agree as follows: 1. Employees may accrue standby hours as Comp time on a voluntary basis for any or all of the weekly standby hours. 2. Either the Utility or the Union may rescind the above agreement with thirty (30) days written notice to other party. 3. Either the Utility or the Union may request an annual review of this Letter of Agreement, or a review prior to rescinding the agreement pursuant to #2 above; such request shall not be denied. 4. This Letter of Agreement represents the full and complete agreement between the parties regarding this matter. IN WITNESS WHEREOF, the parties have caused this Letter of Agreement to be executed this day of , 2016. FOR THE UNION: FOR THE UTILITY: Date Date Date Date Date Date 24 MEMORANDUM OF AGREEMENT HEALTH CARE SAVINGS PLAN This Memorandum of Agreement is entered into between the Hutchinson Utilities Commission (hereafter "Employer") and International Brotherhood of Electrical Workers, Local 949 (hereafter "Union"). WHEREAS, the Employer and the Union are parties to a collective bargaining agreement; and WHEREAS, the members of the Union bargaining unit are eligible to participate in the Minnesota Post Employment Health Care Savings Plan (hereafter "Post Employment Health Care Savings Plan" or "HCSP") established under Minnesota Statutes, Section 352.98 and as outlined in the Minnesota State Retirement System's Trust and Plan Documents. NOW, THEREFORE, the Employer and the Union agree as follows: 1. All funds collected by the Employer on the behalf of the employee will be deposited into the employee's Post Employment Health Care Savings Plan account. 2. All retiring employees eligible for the payment of sick leave outlined in Article XV, Section 15.12 of the contract will contribute to the Post Employment Health Care Savings Plan as follows: 100% of employee sick leave retirement severance to the HCSP. 3. All employees eligible for a retirement incentive severance payment outlined in the 2015 Hutchinson Utilities Incentive Program and any subsequent Programs will contribute to the Post Employment Health Care Savings Plan as follows: 100% of employee retirement incentive severance payment based on years of service to the HCSP. 100% of the retirement severance payment representing the cost of one week of Employer provided health and dental insurance premium for each year of employment and 100% of the retirement severance payment in the amount equal to six (6) months of Employer provided health and dental insurance premiums to the HCSP. 100% of the payment of an additional sick leave severance payout offered per the retirement incentive program. 4. Retiring is defined as ceasing to actively work in the full-time position with Hutchinson Utilities Commission to which the employee is appointed and is immediately thereafter eligible to receive pension payments from the Public Employees Retirement Association. 25 5. This Memorandum will take effect on the date of its execution and shall remain in effect for the duration of the 2016-2019 Collective Bargaining Agreement and for a minimum period of two (2) years as required by the MSRS. 6. No Employer contribution shall be made to the Post Employment Health Care Savings Plan, and the Employer shall have no responsibility or liability for management or disbursement of any funds remitted to the Plan. 7. This Memorandum of Agreement represents the complete and total agreement between the parties. IN WITNESS WHEREOF, the parties have caused this Memorandum of Agreement to be executed this day of , 2016. FOR HUTCHINSON UTILITIES COMMISSION President Vice President 26 FOR INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL 949 Business Representative From: T & R Service Company August 2, 2016 PO Box 197 To: Hutchinson Utilities Colman SD 57017 225 Michigan St EPA ID#: SDD980951370 Hutchinson MN 55350-1940 PROPOSAL This proposal by T & R Service Company to Hutchinson Utilities is for the purposes of disposing of the customer's non -PCB capacitor(s). Whereas T & R Service will perform disposal work for Hutchinson Utilities in accordance with the following: A. T & R Service will dispose of the customer's non -PCB capacitors (see attached list) for $9.00 per pound. B. All non -PCB capacitors will be incinerated at an EPA approved disposal facility. T & R Service will transport and take title and responsibility for non -PCB capacitors received from the customer. After disposal, certificates of disposal will be sent to the customer. C. A hazardous waste manifest will be used for disposal material. This form will provide certification to the customer at each step of the disposal procedure. D. A certificate of insurance for T & R Service Company will be provided to the customer. Estimated Make Serial # PCB Content Weight (lbs) Price Per Unit Seven (7) crates of non -PCB capacitors <2 7032 pounds $9.00 per pound TOTAL ESTIMATED CHARGE: .............................. $ 63,288.00 T & R Service Company hereby submits this proposal to Hutchinson Utilities. Name Title Date Hutchinson Utilities he by accepts thi��sal � &.R Service Company. Name Z tC ( c /4"( Title �A ! A,' 6101 � / Date L- 1 310 W Hwy 34 800-843-7995 PO Box 197 Colman SD 57017 Fax 605-534-3717 www.trservice.com AV2 AFINFIFARWA?f Minnesota Municipal Utilities Association August 15, 2016 Dear MMUA Member: 3025 Harbor Lane N I Suite 400 Plymouth, MN 55447-5142 Phone 763.551.1230 1 Toll Free 800.422.0119 (MN) Fax 763,551.0459 www,mmua.org I am writing today regarding our Mutual Aid (disaster response) program. The Federal Emergency Management Agency (FEMA) will not reimburse costs arising from a city or municipal utility assisting another city/utility unless there is a prior, written agreement between the damaged party and the assisting party. This requirement Is stipulated in policy update 9523.6 [Mutual Aid Agreements for Public Assistance]. There is no provision for reimbursement for mutual aid when there is no formal written agreement. Two document] are required for this program: Mutual Aid Agreement and Resolution. We do not have one or more of these documents on file for your utility. D If you have ,copies of both slgned/approved documents in your files, please forward the copies at your earliest convenience. D If you don't have copies of both documents, we will need a new Agreement and a new Resolution. Please see the enclosed Mutual Aid Agreement and a model Resolution. The Resolution authorizes participation in the MMUA Mutual Aid Program, directs execution of the Mutual Aid Agreement and establishes authority for setting rates for reimbursement. I urge you to consider adoption of a resolution by your utility's governing body: - If your city is a statutory city and has a utility commission, the governing body is the commission; - If your city is a statutory city without a commission, the governing body is the city council; - If your city is a charter city, you will need to review your charter to determine if the city council or a commission is the governing body; you may consider seeking approval of both. It is important to note that the Mutual Aid Agreement does not obligate you for your city/utility to provide mutual aid, it merely clears the deck for receipt of FEMA reimbursement should you assist another city/utility, etc., and federal disaster assistance funds become available. Once the Resolution is Approved Please email, fax or mail a signed/dated copy of the Resolution as adopted and a copy of the newly executed Mutual Aid Agreement to MMUA. Our goal is for 100% participation by Minnesota's electrical utilities, however if you do not intend to submit a Resolution/Mutual Aid Agreement, I would appreciate written notification. Thank you for your prompt attention to this matter, Sincerely, Mike Willetts Director of Training & Safety P.S. We can accept your signed Resolution and Agreement at any time, however to be considered eligible under FEMA, tbgsa must be on file before an ocCrrence, HUTCHINSON UTILITIES COMMISSION RESOLUTION NO. 1013 MUTUAL AID AGREEMENT WHEREAS, the Hutchinson Utilities Commission ("HUC"), in the City of Hutchinson, Minnesota, operates and maintains a municipal electric and gas utility; WHEREAS, HUC wishes to cooperate with other cities which own and operate utility systems and other publicly owned utility organizations ("Publicly Owned Utilities"); WHEREAS, HUC is a member of the Minnesota Municipal Utilities Association ("MMUA") and MMUA has developed a program to encourage and foster mutual aid between and among Publicly Owned Utilities in the event of disasters and emergencies; WHEREAS, the Federal Emergency Management Agency ("FEMA") has established a rule which provides that FEMA will reimburse mutual aid costs for a particular disaster or emergency only if mutual aid participants have signed a written agreement prior to that disaster or emergency; WHEREAS, prudent and appropriate charges should be established from time to time which may be paid to HUC for its provision of mutual aid services and which may be paid to other Publicly Owned Utilities which may provide mutual assistance to City; NOW THEREFORE BE IT RESOLVED BY HUTCHINSON UTILITIES COMMISSION OF THE CITY OF HUTCHINSON: 1. The General Manager is hereby authorized and directed to execute and deliver the MMUA Mutual Aid Agreement (attached hereto) and such other documents and agreements as may be necessary to implement HUC's participation in the MMUA Mutual Aid Program and to qualify for FEMA reimbursement of mutual aid costs. 2. The managing staff of HUC shall establish reasonable rates for reimbursement of its labor and equipment costs as contemplated in FEMA rules, and periodically revise such rates as necessary. Page 2, Resolution 1013 3. HUC may on a voluntary basis provide mutual aid assistance to other Publicly Owned Utilities if management determines (a) the reliability and performance of RUC's utility system(s) and the public health and safety of RUC's customers will not be materially or adversely affected, (b) the other Publicly Owned Utility has executed the MMUA Mutual Aid Agreement (or an agreement substantially similar in form and content) and (c) the other Publicly Owned Utility has established rates of reimbursement of HUC's labor and equipment costs which are reasonably comparable to those established by HUC. Adopted by the Hutchinson Utilities Commission this 31' day of August 2016. ATTEST: Mark Girard Donna Luhring Secretary President MUTUAL AID AGREEMENT In consideration of the mutual commitments given herein, each of the Signatories to this Mutual Aid Agreement agrees to render aid to any of the other Signatories as follows: 1.) Reauest for aid. The Requesting Signatory agrees to make its request in writing to the Aiding Signatory within a reasonable time after aid is needed and with reasonable specificity. The Requesting Signatory agrees to compensate the Aiding Signatory as specified in this Agreement and in other agreements that may be in effect between the Requesting and Aiding Signatories, 2.) Discretionary renderina of aid. Rendering of aid is entirely at the discretion of the Aiding Signatory. The' agreement do render aid is expressly not contingent upon a declaration of a major disaster or emergency by the federal government or upon receiving federal funds. 3.) Invoice to the Reauestin2 Sienatorv. Within 90 days of the return to the home work station of all labor and equipment of the Aiding Signatory, the Aiding Signatory shall submit to the Requesting'Signatory an invoice of all charges related to the aid provided pursuant to this Agreement. The invoice shall contain only charges related to the aid provided pursuant to this Agreement. 4.) saes to the ReqUO&LSignatory. Charges to the Requesting Signatory from the Aiding Signatory shall be as follows: a.) Labor force. Charges for labor force shall be in accordance with the Aiding Signatory's standard practices, b.) EQWP—melit. Charges for equipment, such as bucket trucks, digger derricks, and other special equipment used by the Aiding Signatory, shall be at the reasonable and customary rates for such equipment in the Aiding Signatory's location. c.) Transportation. The Aiding Signatory shall transport needed personnel and equipment by reasonable and customary means and shall charge reasonable and customary rates for such transportation. d.) Meals. lodaing and other related expenses. Charges for meals, lodging and other expenses related to the provision of aid pursuant to this Agreement shall be the reasonable and actual costs incurred by the Aiding Signatory. 5.) Counterparts. The Signatories may execute this Mutual Aid Agreement in one or more counterparts, with each counterpart being deemed an original Agreement, but with all counterparts being considered one Agreement. 6.) Execution. Each party hereto has read, agreed to and executed this Mutual Aid Agreement on the date indicated. Date 1/ -14 Entity l utchi nson Uti 1 i ti qs Commission By Title/t E'er1� Return to: Minnesota Municipal Utilities Association, 3025 Harbor Lane North, Suite 400, Plymouth, MN 55447.