01-25-2017 HUCCPMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, January 25, 2017
Call to order — 3:00 p.m.
Vice President Morrow called the meeting to order. Members present: Vice President
Monty Morrow; Secretary Mark Girard; Commissioner Anthony Hanson; Commissioner
Robert Wendorff; Attorney Marc Sebora; General Manager Jeremy Carter.
1. Conflict of Interest
Commissioner Hanson declared a conflict of interest in voting on agenda item 4f,
Designate Depositories for Utility Funds, as he is an employee of Citizens Bank &
Trust. Secretary Girard also declared a conflict of interest in voting on agenda item
4f, as he is a director for Citizens Bank & Trust.
2. Swearing in of New Commissioner — Don Martinez
Attorney Sebora swore in the newly elected commissioner, Don Martinez.
3. Re -Appoint Commissioners Monty Morrow and Mark Girard
Attorney Sebora re -appointed Monty Morrow and Mark Girard to the Hutchinson
Utilities Commission Board.
4. Commission Reorganization
Vice President Morrow called for the annual Commission reorganization.
a. A motion was made by Commissioner Hanson, seconded by Secretary Girard
to elect Monty Morrow to the position of president. Motion was unanimously
carried.
b. A motion was made by Commissioner Wendorff, seconded by Vice President
Morrow to elect Anthony Hanson to the position of vice president. Motion was
unanimously carried.
c. A motion was made by Commissioner Wendorff, seconded by Commissioner
Hanson to appoint Mark Girard as secretary. Motion was unanimously carried.
d. A motion was made by Commissioner Hanson, seconded by Secretary Girard
to appoint Marc Sebora as legal counsel. Motion was unanimously carried.
e. A motion was made by Commissioner Hanson, seconded by Vice President
Morrow to appoint Kim Koski as recording secretary. Motion was unanimously
carried.
f. A motion was made by Commissioner Wendorff, seconded by Commissioner
Martinez, to designate Citizens Bank & Trust, Wells Fargo Bank, Wells Fargo
Advisors, Home State Bank, Morgan Stanley and Cetera Investment Services
as depositories for utility funds. Motion was unanimously carried.
5. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
A motion was made by Commissioner Hanson, seconded by Commissioner
Wendorff to approve the Consent Agenda. Motion was unanimously carried.
6. Approve Financial Statements
Jared Martig presented the financial statements. GM Carter mentioned the net
income was 6% better than in the last few years. HUC is anticipating higher power
cost adjustments in 2017.
After discussion, a motion was made by Secretary Girard, seconded by
Commissioner Hanson to approve the financial statements. Motion was
unanimously carried.
7. Open Forum
8. Communication
a. City Administrator — Matthew Jaunich
i. Receiving bids for the 2017 School Road and Roberts Road projects.
ii. Working with potential developer for the proposed hotel at
Highways 7 and 15.
iii. The recreation center lobby and locker area are updated.
b. Divisions
i. Randy Blake —
1. Air permit for the LM6000 engine at Plant 2 is due in 2017.
2. MPCA is changing emissions reporting format from fiscal quarterly to
hourly.
3. Inspections went well from the new insurance company covering the
boiler machinery.
4. Working to finish a couple 2016 capital projects.
5. Training in the new operator at Plant 1.
ii. Dan Lang —
1. Nothing to report.
iii. Dave Hunstad —
1. There was an outage last Saturday on the east part of town. There were
7 outages in 2016. Next month, will discuss the outages for 2016, how
underground wire is replaced and HUC's plan on where we will be
replacing conductor moving forward.
iv. Jared Martig -
1. Auditors will be here next week.
2. BS&A will be onsite to work
February 9.
on the software February 7 through
v. John Webster -
1. HUC made some money from parking natural gas on the pipeline for a
gas marketer earlier this month.
2. Comparing 2015 to 2016 natural gas annual lost and unaccounted for.
There was a 0.62% loss in 2015, with the loss going down to .53% in
2016 which resulted in a 14'/2% decrease in lost and unaccounted
natural gas.
vi. Brenda Ewing —
1. Nothing to report.
c. Legal — Attorney Sebora
i. Nothing to report.
d. General Manager — Jeremy Carter
i. Attending a couple webinars coming up on mission critical infrastructure.
ii. The next Power Plan stakeholders' meeting is on February 24.
iii. Items for discussion and presentation in the next couple months are:
reliability reporting, follow up to HUC's capital improvement and fleet
planning, HUC's renewable solar garden philosophy, and a review of the
wholesale generation model.
9. Policies
a. Review Policies
i. Identity Theft — Red Flag Program
ii. Minnesota Government Data Practices Act & Public Records Request
iii. Administration of Personnel Policies & Procedures
iv. Savings Clause
v. Equal Employment Opportunity
No changes were recommended at this time.
b. Approve Changes - None
10. Unfinished Business
a. Update on Pack Gas Discussions
GM Carter is waiting to hear from New Ulm's attorney regarding the direction to
go from here.
11. New Business
a. Approve Requisition 7001 for a Vacuum Excavation Machine
Dave Hunstad presented Requisition 7001 for a Vacuum Excavation Machine
in the amount of $40,467.15 for Trenchers Plus. A motion was made by
Commissioner Hanson, seconded by Secretary Girard to approve Requisition
7001 for a Vacuum Excavation Machine. Motion was unanimously carried.
(Requisition 7001 attached.)
3
b. Approve Requisition 7002 for a Tractor Loader Backhoe
Dave Hunstad presented Requisition 7002 for a Tractor Loader Backhoe in the
amount $61,827.19 for Lano Equipment Inc. A motion was made by
Commissioner Wendorff, seconded by Commissioner Martinez to approve
Requisition 7002 for a Tractor Loader Backhoe. Motion was unanimously
carried. (Requisition 7002 attached.)
c. Consideration and Approval of the 2017 Pay Equity Report
Brenda Ewing presented the 2017 Pay Equity Report for approval. The report is
a requirement of the State and is due every three years. The purpose of the
report is to make sure HUC meets State requirements on female job classes
versus male job classes. HUC is using the Springsted system which is a State
approved system. HUC is in compliance.
A motion was made by Commissioner Hanson, seconded by Secretary Girard
to approve the 2017 Pay Equity Report. Motion was unanimously carried. (2017
Pay Equity Report attached.)
d. Approve 3M CIP Rebate
Jared Martig presented the 3M CIP Rebate for $54,550.13. A motion was made
by Secretary Girard, seconded by Commissioner Hanson to approve the 3M
CIP Rebate. Motion was unanimously carried. (Rebate analysis attached.)
12. Adjourn
There being no further business, a motion was made by Commissioner Hanson,
seconded by Commissioner Wendorff to adjourn the meeting at 3:47 p.m. Motion
was unanimously carried.
ATTEST:
Monty M row, President
4
11WAle
M k Girard, Secretary
HUTCHINSON UTILITIES COMMISSION REQUEST FOR QUOTATION
Supplier: TRENCHER PLUS Ship To: HUTCHINSON UTILITIES COMMISSION Quotation No. 007001
2309 HWY 13 W
BURNSVILLE, MN 55337-0344
Phone: 952-890-6000
Fax: 952-890-4563
175 MICHIGAN ST SE
HUTCHINSON, MN 55350
Phone: 320-587-4746
Fax: 320-587-4721
Item #
D Part Num. Description
Request Date
Acct #
WO #
Unit Price Per
Item Total
1
1 (000-00000)
01/17/2017
1073960000
51701
37,864.00 Each
37.864.00
Line Remarks: State Contract Item #W-1960(5) Ring -O -Matic 550
Hi cfm Vaccum Excavation Machine with Heater. See Attached
Quote.
State Contract Bid item #W-196(5)
Total Costs --------------------$57864.00
less trade of 2007 Vac --------- $20000.00
Total cost ----------------------
$37864.00
Sales Tax (6.87596) ------------
$ 2,603.15
Total after Sales Tax---------
$40,476.15
Page 1 of 1
HUTCHINSON UTILITIES COMMISSION REQUEST FOR QUOTATION
Supplier: LANO EQUIPMENT INC. Ship To: HUTCHINSON UTILITIES COMMISSION Quotation No. 007002
3021 133rd St. W
SHAKOPEE, MN 55379
Phone: 612-282-4545
Fax:
175 MICHIGAN ST SE
HUTCHINSON, MN 55350
Phone: 320-587-4746
Fax: 320-587-4721
Item 9
Part Num. Description
Request Date
Acct #
WO 9
Unit Price
Per
Item Total
1
1
(000-00000)
Line Remarks: Kubota M62TLB See attached quote. 707899
01/17/2017
1073960000
51704
57,850.00
Each
57,850.00
Page 1 of 1
Compliance Report
Jurisdiction: Hutchinson Utilities Report Year: 2017
225 Michigan Street SE Case: 1 - 2016 Data (Private (Jur Only))
Hutchinson MN 55350
Contact: Jeremy Carter Phone: (320) 234-0505 E -Mail: jcarter@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 = 229.17 •
Male Female Balanced
All Job
Classes Classes Classes
Classes
# Job Classes
24 5 1
30
# Employees
41 6 4
51
Avg. Max Monthly
6,868.66 5,987.00
6,711.94
Pay per employee
45.83
20.00
II. STATISTICAL ANALYSIS TEST
A. Underpayment Ratio = 229.17 •
B. T-test Results
Degrees of Freedom (DF) = 45 Value of T = -0.407
a. Avg. diff. in pay from predicted pay for male jobs = $3
b. Avg. diff. in pay from predicted pay for female jobs = $58
III. SALARY RANGE TEST - 0.00 (Result is A divided by B)
A. Avg. # of years to max salary for male jobs = 3.75
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
13
4
b. # Below Predicted Pay
11
1
c. TOTAL
24
5
d. % Below Predicted Pay
45.83
20.00
(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
Degrees of Freedom (DF) = 45 Value of T = -0.407
a. Avg. diff. in pay from predicted pay for male jobs = $3
b. Avg. diff. in pay from predicted pay for female jobs = $58
III. SALARY RANGE TEST - 0.00 (Result is A divided by B)
A. Avg. # of years to max salary for male jobs = 3.75
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)
Hutchinson Utilities
Job Class Data Entry Verification List LGID 28
Case: 2016 Data
Job
Class
Nbr
Nbr
Class
Jobs
Min Mo
Max Mo
Yrs to Max
Yrs of Exceptional
Nbr
Title
Males
Females
Type
Points
Salary
Salary
Salary
Service Service Pay
1
Account Coordinator
0
2
F
163
$4,456.00
$4.456.00
0.00
6.00
2
Engineering Technician
2
0
M
220
$3,986.00
$5,475.00
4.00
0.00
3
Electric Meter Technician
1
0
M
220
$4,328.00
$5,770.00
2.00
0.00
4
Maintenance Mechanic
2
0
M
220
$4,313.00
$5,751.00
4.00
0.00
5
Natural Gas Meter Service
1
0
M
225
$4,328.00
$5,770.00
4.00
0.00
6
Welder/Serviceperson
2
0
M
240
$4,328.00
$5,770.00
4.00
0.00
7
Purchasing/Inventory Ager
1
0
M
243
$4,577.00
$6,180.00
0.00
18.00
8
Operations Engineer
8
0
M
260
$4,106.00
$5,865.00
4.00
0.00
9
Administrative Coordinator
0
1
F
270
$4,852.00
$6,550.00
0.00
7.00
10
Account Supervisor
0
1
F
270
$4,852.00
$6,550.00
0.00
23.00
11
Accountant
0
1
F
273
$4,852.00
$6,550.00
0.00
12.00
12
Maintenance Electrician
2
0
M
273
$4,504.00
$6,006.00
4.00
0.00
13
System Controller
3
1
B
275
$5,930.00
$6,193.00
2.00
0.00
14
Natural Gas Meter Crew C
1
0
M
290
$6,415.00
$6,415.00
0.00
19.00
15
Electric Lineperson
5
0
M
293
$4,768.00
$6,358.00
4.00
0.00
16
Energy Conservation Adm
1
0
M
310
$5,143.00
$6,943.00
0.00
15.00
17
Maintenance Crew Chief
2
0
M
315
$6,415.00
$6,415.00
0.00
21.00
18
Computer Systems Analys
0
1
F
330
$5,452.00
$7,360.00
0.00
40.00
19
Electric Meter Crew Chief
1
0
M
330
$6,437.00
$6,437.00
0.00
31.00
20
Operations Crew Chief
1
0
M
335
$6,415.00
$6,415.00
0.00
17.00
21
System Control Crew Chia
1
0
M
340
$6,834.00
$6,834.00
0.00
24.00
22
Distribution Crew Chief
1
0
M
348
$6,415.00
$6,415.00
0.00
9.00
23
Electric Crew Chief
2
0
M
360
$7,011.00
$7,011.00
0.00
17.00
24
Transmission Crew Chief
1
0
M
370
$6,415.00
$6,415.00
0.00
24.00
25
Electric Trans/Dist Manage
1
0
M
520
$7,296.00
$9,849.00
0.00
20.00
26
Production Manager
1
0
M
545
$7,296.00
$9,849.00
0.00
39.00
27
Financial Manager
1
0
M
560
$7,734.00
$10,440.00
0.00
9.00
28
Engineering Services Man.
1
0
M
585
$7,734.00
$10,440.00
0.00
16.00
29
Natural Gas Director
1
0
M
600
$8,198.00
$11,067.00
0.00
24.00
30
General Manager
1
0
M
760
$10,349.00
$14,810.00
0.00
3.00
Job Number Count: 30
16000
14000
12000
10000
W
8000
6000
4000
Predicted Pay Report for Hutchinson Utilities
Case: 2016 Data
1/20/2017
100 200 300 400 500 600 700 800
Points
* Male Jobs E Female Jobs 0 Balanced Jobs Predicted Pay
--- Line Continuation (Min) ---Line Continuation (Max)
Page 1 of 2
■
100 200 300 400 500 600 700 800
Points
* Male Jobs E Female Jobs 0 Balanced Jobs Predicted Pay
--- Line Continuation (Min) ---Line Continuation (Max)
Page 1 of 2
Job
Nbr
Job Title
Nbr
Males
Predicted Pay Report for Hutchinson Utilities
Case: 2016 Data
Nbr Total Job
Females Nbr Type
Job
Points
Max Mo
Salary
Predicted
Pay
1/20/2017
Pay
Difference
1
Account Coordinator
0
2
2
Female
163
$4,456.00
$5,362.35
($906.35)
2
Engineering Technician
2
0
2
Male
220
$5,475.00
$5,678.91
($203.91)
3
Electric Meter Technician
1
0
1
Male
220
$5,770.00
$5,678.91
$91.09
4
Maintenance Mechanic
2
0
2
Male
220
$5,751.00
$5,678.91
$72.09
5
Natural Gas Meter Service
1
0
1
Male
225
$5,770.00
$5,706.77
$63.23
6
Welder/Serviceperson
2
0
2
Male
240
$5,770.00
$5,796.87
($26.87)
7
Purchasing/Inventory Agent
1
0
1
Male
243
$6,180.00
$5,824.46
$355.54
8
Operations Engineer
8
0
8
Male
260
$5,865.00
$5,990.98
($125.98)
9
Administrative Coordinator
0
1
1
Female
270
$6,550.00
$6,089.06
$460.94
10
Account Supervisor
0
1
1
Female
270
$6,550.00
$6,089.06
$460.94
11
Accountant
0
1
1
Female
273
$6,550.00
$6,106.39
$443.61
12
Maintenance Electrician
2
0
2
Male
273
$6,006.00
$6,106.39
($100.39)
13
System Controller
3
1
4
Balanced
275
$6,193.00
$6,124.95
$68.05
14
Natural Gas Meter Crew Chief
1
0
1
Male
290
$6,415.00
$6,229.50
$185.50
15
Electric Lineperson
5
0
5
Male
293
$6,358.00
$6,255.59
$102.41
16
Energy Conservation Administra
1
0
1
Male
310
$6,943.00
$6,424.07
$518.93
17
Maintenance Crew Chief
2
0
2
Male
315
$6,415.00
$6,429.36
($14.36)
18
Computer Systems Analyst
0
1
1
Female
330
$7,360.00
$6,564.05
$795.95
19
Electric Meter Crew Chief
1
0
1
Male
330
$6,437.00
$6,564.05
($127.05)
20
Operations Crew Chief
1
0
1
Male
335
$6,415.00
$6,598.35
($183.35)
21
System Control Crew Chief
1
0
1
Male
340
$6,834.00
$6,622.09
$211.91
22
Distribution Crew Chief
1
0
1
Male
348
$6,415.00
$6,660.18
($245.18)
23
Electric Crew Chief
2
0
2
Male
360
$7,011.00
$6,693.04
$317.96
24
Transmission Crew Chief
1
0
1
Male
370
$6,415.00
$6,791.02
($376.02)
25
Electric Trans/Dist Manager
1
0
1
Male
520
$9,849.00
$9,717.29
$131.71
26
Production Manager
1
0
1
Male
545
$9,849.00
$10,081.57
($232.57)
27
Financial Manager
1
0
1
Male
560
$10,440.00
$10,299.79
$140.21
28
Engineering Services Manager
1
0
1
Male
585
$10,440.00
$10,664.07
($224.07)
29
Natural Gas Director
1
0
1
Male
600
$11,067.00
$10,882.29
$184.71
30
General Manager
1
0
1
Male
760
$14,810.00
$14,765.20
$44.80
Job Number Count: 30
Page 2 of 2
Surplus Equipment/Trailers/Vehicles
Year Make
Sold
1988 John Deere 310C Tractor/Backhoe
$
10,301.00
1999 New Holland Skid Steer
$
10,000.00
2000 Case 660 Trencher/Backhoe
$
10,101.00
2005 T -12T Towmaster Trailer
$
4,000.00
2005 Dodge Dakota Light Truck
$
6,500.00
Trailer
$
230.00
Fisher Controls
$
40.00
Total Revenue received
$
41,172.00
To be sold Spring 2017
Estimated Value
2000 Ditch Witch 8020 Plow/Backhoe
$
20,000.00
2000 FT- -20 Felling Trailer
$
8,000.00
2005 Dodge Dakota
$
6,500.00
2002 Ford F 550 Dump Truck
$
8,000.00
Total Estimated
$
42,500.00
3M Custom Projects 2016
ECRP-18
ECRP-19
ECRP-20
MMBTU GAS/MCF Saved
Total MCF Savinas
841
MMBTU
KWH Saved
ECRP-1
394
115,399.00
ECRP-2
172
50,380.00
ECRP-3
115
33,737.00
ECRP-4
167
48,921.00
ECRP-5
803
92,798.00
ECRP-6
197
72,300.00
ECRP-7
629
173465
ECRP-8
240
70,462.00
ECRP-9
1963
561,709
ECRP-10
262
73,755.00
ECRP-11
59
17315
ECRP-12
625
102,159
ECRP-13
ECRP-14
234
68,496
ECRP-15
307
90,000
ECRP-16
234
65,700
ECRP-17
1704
130,699
ECRP-18
ECRP-19
96
26,899
ECRP-20
609
1,567
ECRP-18
ECRP-19
ECRP-20
MMBTU GAS/MCF Saved
Total MCF Savinas
841
KW Savings
ECRP-1
192
ECRP-2
126
ECRP-3
ECRP-4
ECRP-5
ECRP-6
ECRP-7
ECRP-8
ECRP-9
72
ECRP-10
ECRP-11
ECRP-12
11.7
ECRP-13
ECRP-14
9.6
ECRP-15
ECRP-16
7.5
ECRP-17
14.9
ECRP-18
ECRP-19
ECRP-20
MMBTU GAS/MCF Saved
Total MCF Savinas
841
820
197
192
130
126
480 468
1606
1,702,963.00 $ 17,029.63 KWH SAVINGS TOTAL
115.7
$ 34,710.00 KW SAVINGS TOTAL
$ 17,029.63 KWH SAVINGS TOTAL
$ 2,810.50 MCF Savings Total
$ 54,550.13 TOTAL REBATE