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06-28-2017 HUCCPHUTCHINSON UTILITIES COMMISSION AGENDA REGULAR MEETING June 28, 2017 3:00 p.m. 1. CONFLICT OF INTEREST 2. APPROVE CONSENT AGENDA a. Approve Minutes b. Ratify Payment of Bills 3. APPROVE FINANCIAL STATEMENTS 4. OPEN FORUM 5. COMMUNICATION a. City Administrator b. Divisions C. Legal d. General Manager 6. POLICIES a. Review Policies i. Delegation of Authority Policy ii. Hutchinson Utilities Commission iii. Establishing a New Electric/Natural Gas Account iv. Complaint/grievance procedures v. Employee Conduct b. Approve Changes i. 7. UNFINISHED BUSINESS a. Update on Pack Gas Discussions 8. NEW BUSINESS a. RP3 Designation by Hutchinson Utilities Commission b. 9. ADJOURN MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, May 24, 2017 Call to Order — 3:00 p.m. President Monty Morrow called the meeting to order at 3:00 p.m. Members present: President Monty Morrow; Vice President Anthony Hanson; Secretary Mark Girard; Commissioner Robert Wendorff; and Commissioner Don Martinez. Others present: General Manager Jeremy Carter; Attorney Marc Sebora. 1. Conflict of Interest None 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Finance Manager Jared Martig noted that some of the bills in the payment list were also included on the previous month list due to the software conversion. It was confirmed that all bills were paid only once. Motion by Girard, second by Martinez, to approve the Consent Agenda. Motion carried unanimously. 3. Approve 2016 Financial Audit — Presentation by Paul Harvego Paul Harvego with the Conway, Deuth & Schmiesing audit firm presented the 2016 Hutchinson Utilities Commission independent audit report. Mr. Harvego noted the changes in the report requirements due to Government Accounting Standards Board (GASB) requirements. Both the electric and natural gas divisions experienced an increase in revenues from 2015 to 2016. Mr. Harvego summarized the communications portion of the report and the general recommendations that consist of staff cross -training and capital asset accounting. Staff should be trained annually on the process to report fraud. Hanson questioned Mr. Harvego about the components of the prior period adjustments which include the pension adjustment and the New Ulm packed gas issue. Motion by Hanson, second by Girard to approve the 2016 Financial Audit. Motion carried unanimously. 4. Approve Financial Statements General Manager Carter presented the financial statements. With the software conversion in process, there are a number of notes to explain the statements generated by the new software. Mr. Carter also noted that the April 2017 utility bills included five fewer days, and this is reflected in the statements. Financial Manager Jared Martig noted that an electric power cost adjustment and a fuel cost adjustment credit have been applied to customers all four months in 2017. Motion by Wendorff, second by Martinez to approve the financial statements. Motion carried unanimously. 5. Open Forum 6. Communication a. City Administrator— Matt Jaunich i. Commercial and residential development is occurring all over the City, including a large residential apartment complex. ii. Denver Avenue SE should be open by the end of June. b. Divisions i. Dan Lang — Nothing to report ii. Dave Hunstad — Work is occurring on 3 commercial projects, the Roberts Rd and School Rd project, and 11 residential services iii. Randy Blake — Emissions testing will be held next week; the Plant 2 MPCA air permit is almost complete; work continues on the bid documents for units 6 and 7 and should be ready for distribution to the manufacturers, soon; finishing capital projects iv. John Webster — A meeting will be held with BP tomorrow regarding a prepaid gas purchasing program v. Jared Martig — New software is up and running except for the payroll module; the Account Coordinator position has been conditionally offered to a candidate; the interview process for the Administrative Coordinator is in process c. Legal — Marc Sebora i. Nothing to report. d. General Manager — Jeremy Carter i. Kick off meeting with HDR is pending; a meeting with HUC and the City to discuss the PILOT will be scheduled; and working on the cost of service study 7. Policies a. Review Policies i. Natural Gas Requirements and Placement ii. Natural Gas Service Work iii. Locating Customer's Underground Utilities — Gas No changes were recommended at this time. 2 b. Approve Changes i. Meter Testing — Gas The proposed changes are generally grammatical, and text has been added to make the policy more straightforward and clear. Motion by Hanson, second by Girard to approve the changes to the Natural Gas Meter Testing policy. The motion carried unanimously. 8. Unfinished Business a. Discussion on proposed Pipeline Imbalance settlement agreement with New Ulm Public Utilities Commission GM Carter noted that this liability has been on the HUC books for a year. New Ulm has provided a settlement agreement and they approved and signed the agreement at their meeting, yesterday. This will be on the Commission agenda in June. Heartland Corn is in the process of discussing their settlement agreement with HUC. Carter asked the Commission for any comments on the settlement agreement documents. Hanson asked if the settlement agreement amounts are what has been expected. It was confirmed that they are and that the agreement, when signed, will protect HUC from any future liability regarding this matter. Hanson recommended moving forward with approving the settlements if the Commission is comfortable doing so at today's meeting. The Commission indicated they will act on the settlement agreement. Motion by Hanson, second by Girard, to approve the New Ulm settlement agreement. Motion carried unanimously. 9. New Business a. RP3 Designation by Hutchinson Utilities Commission Dave Hunstad noted this is the 10th consecutive year that HUC has been awarded this designation and that this designation is in place until 2020. HUC is recognized at the platinum level through the APPA. It was noted that this designation is used in the economic development marketing materials for commercial/industrial entities. b. Consideration of Approval of Requisition #007218 John Webster noted there is a need to replace Natural Gas facilities near School Rd and Roberts Rd intersection that serve the SW portion of the City. Improvements and updates are needed to provide for effective flow. Three bids/quotes were received. It is recommended that Q3 Contracting be awarded the bid. They have completed work for HUC, previously. Motion by Martinez, second by Wendorff to approve Requisition #007218. Motion carried unanimously. c. Consideration of Approval of the Cost of Service & Rate Design Study 3 Mr. Carter noted that there were four responses to the HUC RFP. Two of these are capable of doing only the study for the electric side of the business. Those that can do both sides are a firm HUC has worked with previously and Utility Financial Solutions. The Utility Financial Solutions proposal is more expensive than the other firm, but they can complete the work in 12 weeks, have a larger team and more resources assigned to this project, and will provide a fresh perspective on the project. The references for the consultant have been checked and are favorable. If approved, the kick-off meeting is tentatively scheduled for June 2, 2017. For proprietary reasons, the consultant will not meet the proposal requirement to provide an editable spreadsheet. Motion by Girard, second by Hanson to approve the Cost of Service and Rate Design Study. Motion carried unanimously. d. Consideration of Approval of the General Manager's Contract Renewal Marc Sebora provided information about the contract document. The contract renewal is required as the current contract runs out May 27, 2017. The proposed contract is open-ended with no sunset date, and includes new language that Mr. Carter will be subject to the provisions of the Exempt handbook for employee discipline. There is also a minor adjustment to the General Manager's salary as his salary determination for 2017 is subject to the provisions of the current Compensation Plan section of the HUC Exempt Employee Handbook. Hanson added that he had inquired if HUC is covered or protected with the on- going nature of the contract. Marc Sebora noted that Mr. Carter would be subject to the discipline provisions of the non-union policy. Wendorff asked if the contract contains language requiring notice to HUC from Mr. Carter if he chooses to resign. The contract notes a required 30 -day advance notice. Motion by Martinez, second by Hanson to approve the General Manager's employment contract. 10.Adjourn There being no further business, a motion was made by Girard, second by Wendorff to adjourn the meeting at 4:04 p.m. Motion carried unanimously. ATTEST: Monty Morrow, President 12 Mark Girard, Secretary MINUTES Special Meeting — Hutchinson Utilities Commission Friday, June 9, 2017 Call to Order — 7:30 a.m. President Monty Morrow called the meeting to order at 7:30 a.m. The purpose of the special meeting is to consider the advertisement for bids for the units 6 and 7 generator project. Members present: President Monty Morrow; Vice President Anthony Hanson; Commissioner Robert Wendorff; and Commissioner Don Martinez. Commissioner Mark Girard was absent. Others present: General Manager Jeremy Carter; Attorney Marc Sebora. 1. Consideration of Advertisement for Bids for Units 6 and 7 Generator Project General Manager Jeremy Carter presented information regarding the bid process for the 9-10 megawatt natural gas fired reciprocating internal combustion engine generator sets and auxiliaries, to be known as Units 6 and 7. The Commission reviewed the bid documents that are provided to the bidders. These include the Advertisement for Bid, the Final Bid Document, and the Final Technical Data Sheet. Bids are required due to the scope and cost of the project as Hutchinson Utilities (HUC) is a public entity. The bid documents and requirements are in place to ensure we are providing the necessary specification information to potential bidders and are receiving the information we require and need to consider the bid and to put all bidders on an equal playing field. There is a required site visit for all bidders to assist them in formulating a thorough and appropriate bid. If approved, the bid notice will be forwarded, today, to the Hutchinson Leader the official newspaper for proper advertisement. HUC will also directly send the bid documents to 3 major manufacturers that are known to the HUC. These are Wartsilla, Caterpillar and Rolls Royce. The efficiencies of all of these engines are similar, but maintenance costs can differ. Sealed bids for the two 9-10 megawatt natural gas fired reciprocating internal combustion engine generator sets and auxiliaries are due no later than 2:00 p.m. on Friday, July 14, 2017. The bids will be publicly opened and read aloud at 2:00 p.m. on July 14 at the Hutchinson Utilities Commission offices. It is anticipated that it will take staff approximately 30 days to properly and thoroughly review the bids. It is likely that any request for action on accepting a bid can be on the regular HUC meeting in August 2017. There was some discussion regarding the differences of reciprocating engines and gas turbines. The energy to be generated by the new engines will provide more generating capacity and opportunity for additional revenues. 5 GM Carter also noted that he is in contact with the HUC financial advisors regarding financing for the project. It was inquired if the Hutchinson City Council is required to sign off on or approve any financing. Staff will look into this, and at minimum, inform the Hutchinson City Council of the project. The bid documents are based on those that were used for the Unit 5 project and have been reviewed by staff and legal counsel. Motion by Hanson, second by Martinez, to approve the Advertisement for Bids for Units 6 and 7 Generator Project. Motion carried unanimously. 2. Adjourn There being no further business, a motion was made by Wendorff, second by Martinez to adjourn the meeting at 7:48 a.m. Motion carried unanimously. 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O,Dq U N z w N 04 a w q w z 0 x N w a 0 x 0 N q w N m H a N H q U w x 0 co w E� u U H q z H �k HUTCHINSON UTILITIES COMMISSION COMBINED DIVISIONS FINANCIAL REPORT FOR MAY, 2017 2017 2016 Diff. % Chna 2017 2016 Di %Chna Full Yr Bud % of Bud Combined Division May May YTD YTD 2017 HUC 2017 Customer Revenue $ 2,743,197 $ 2,411,582 $ 331,615 13.8% $ 15,118,250 $ 14,774,506 $ 343,744 2.3% $ 36,743,052 Sales for Resale $ 137,718 $ 118,073 $ 19,645 16.6% $ 651,069 $ 514,226 $ 136,843 26.6% $ 2,310,110 NU Transportation $ 71,126 $ 63,930 $ 7,195 11.3% $ 360,353 $ 317,649 $ 42,704 13.4% $ 734,878 Electric Division Transfer $ 54,308 $ 53,931 $ 378 0.7% $ 271,541 $ 269,653 $ 1,889 0.7% $ 651,700 Other Revenues $ 29,324 $ 60,346 $ (31,022) (51.4%) $ 311,079 $ 264,110 $ 46,969 17.8% $ 498,808 Interest Income $ 5,586 $ 6,806 $ (1,220) (17.9%) $ 56,623 $ 15,877 $ 40,746 256.6% $ 100,000 TOTAL REVENUES $ 3,041,259 $ 2,714,667 $ 326,591 12.0% $ 16,768,915 $ 16,156,020 $ 612,895 3.8% $ 41,038,548 Salaries & Benefits $ 390,473 $ 459,357 $ (68,884) (15.00%) $ 2,294,765 $ 2,429,772 $ (135,007) (5.6%) $ 6,005,227 Purchased Commodities $ 1,404,245 $ 1,267,355 $ 136,890 10.8% $ 8,700,911 $ 8,162,390 $ 538,520 6.6% $ 20,990,267 Transmission $ 198,838 $ 176,285 $ 22,553 12.8% $ 924,052 $ 701,819 $ 222,233 31.7% $ 2,550,000 Generator Fuel/Chem. $ 46,473 $ 24,885 $ 21,588 86.8% $ 143,771 $ 208,562 $ (64,791) (31.1%) $ 1,249,801 Depreciation $ 317,333 $ 313,000 $ 4,333 1.4% $ 1,586,667 $ 1,565,000 $ 21,667 1.4% $ 3,808,000 Transfers (Elect./City) $ 154,003 $ 138,613 $ 15,390 11.1% $ 770,013 $ 729,197 $ 40,815 5.6% $ 1,700,647 Operating Expense $ 246,182 $ 130,192 $ 115,990 89.1% $ 978,415 $ 866,463 $ 111,952 12.9% $ 2,583,006 Debt Interest $ 63,382 $ 67,676 $ (4,294) (6.3%) $ 316,912 $ 338,380 $ (21,469) LLa2L $ 760,588 TOTAL EXPENSES $ 2,820,930 $ 2,577,363 $ 243,567 9.5% $ 15,715,504 $ 15,001,584 $ 713,920 4.8% $ 39,647,536 NET PROFIT/(LOSS) $ 220,329 $ 137,304 $ 83,025 60.5%1 $ 1,053,411 $ 1,154,437 $ (101,025) (8.75%) $ 1,391,013 41.1% 28.2% 49.0% 41.7% 62.4% 56.6% 40.9% 38.2% 41.5% 36.2% 11.5% 41.7% 45.3% 37.9% 41.7% 39.6% 75.7% May May YTD YTD 2017 HUC 2017 2016 Change 2017 2016 Change Budget Target Gross Margin % 37.7% 36.4% 1.3% 33.5% 35.8% -2.3% 30.0% Y�IIII��II Operating Income Per Revenue $ (%) 8.3% 6.3% 2.1% 6.7% 8.3% -1.6% 4.5% Net Income Per Revenue $ (%): 7.2% 5.1% 2.2% 6.3% 7.1% -0.9% 3.4% 41.1% 28.2% 49.0% 41.7% 62.4% 56.6% 40.9% 38.2% 41.5% 36.2% 11.5% 41.7% 45.3% 37.9% 41.7% 39.6% 75.7% Electric Division Customer Revenue Sales for Resale Other Revenues Interest Income TOTALREVENLIES Salaries & Benefits Purchased Power Transmission Generator Fuel/Chem. Depreciation Transfers (Elect./City) Operating Expense Debt Interest TOTAL EXPENSES NET PROFIT/(LOSS) HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION FINANCIAL REPORT FOR MAY, 2017 ��U����������������������� �������������������������������������� 41.6% of Year Comp. 2017 2016 Diff. % Chna 2017 2016 Diff. % Chna Full Yr Bud % of Bud $ 2,182,349 $ 1,939,038 $ 243,311 12.5% $ 9,816,208 $ 9,658,666 $ 157,542 1.6% $ 25,185,461 39.0% $ 137,718 $ 118,073 $ 19,645 16.6% $ 651,069 $ 514,226 $ 136,843 26.6% $ 2,310,110 28.2% $ 11,075 $ 42,021 $ (30,946) (73.6%) $ 203,215 $ 160,251 $ 42,963 26.8% $ 280,200 72.5% $ 2,793 $ 3,403 $ (610) (17.9%) $ 28,312 $ 7,939 $ 20,373 256.6% $ 50,000 56.6% $ 2,333,935 $ 2,102,534 $ 231,401 11.0% $ 10,698,803 $ 10,341,081 $ 357,722 3.5% $ 27,825,771 38.4% $ 308,916 $ 356,351 $ (47,436) (13.3%) $ 1,796,705 $ 1,898,341 $ (101,635) (5.4%) $ 4,727,135 38.0% $ 1,119,727 $ 1,005,812 $ 113,914 11.3% $ 5,614,259 $ 5,232,285 $ 381,974 7.3% $ 14,208,043 39.5% $ 198,838 $ 176,285 $ 22,553 12.8% $ 924,052 $ 701,819 $ 222,233 31.7% $ 2,550,000 36.2% $ 46,473 $ 24,885 $ 21,588 86.8% $ 143,771 $ 208,562 $ (64,791) (31.1%) $ 1,249,801 11.5% $ 233,333 $ 225,000 $ 8,333 3.7% $ 1,166,667 $ 1,125,000 $ 41,667 3.7% $ 2,800,000 41.7% $ 123,408 $ 108,974 $ 14,434 13.2% $ 617,041 $ 568,357 $ 48,685 8.6% $ 1,333,516 46.3% $ 173,286 $ 92,748 $ 80,538 86.8% $ 709,459 $ 616,085 $ 93,374 15.2% $ 1,746,330 40.6% $ 2,124 $ 2,551 $ (427) (16.7%) $ 10,620 $ 12,755 $ (2,136) 16.7% $ 25,488 41.7% $ 2,206,105 $ 1,992,607 $ 213,498 10.7% $ 10,982,574 $ 10,363,203 $ 619,371 6.0% $ 28,640,313 38.3% S 127.830 S 109.927 S 17.902 16.3% S (283.771) S (22.122) S (261.649) 1.182.8% S (814.542) 34.8% ��U����������������������� �������������������������������������� May 41.6% of Year Comp. 2017 2016 Diff. % Chna 2017 2016 Diff. % Chna Full Yr Bud % of Bud Electric Division Budget Target Gross Margin % 32.0% 31.4% 0.6% 25.8% 29.1% -3.3% 22.5% Operating Income Per Revenue $ (%) Residential 4,253,360 3,478,716 774,644 22.27% 18,509,781 18,512,825 (3,044) (0.02%) 50,432,797 36.7% All Electric 151,946 122,076 29,870 24.47% 1,137,890 1,169,486 (31,596) (2.70%) 2,611,705 43.6% Small General 1,661,096 1,357,328 303,768 22.38% 7,166,011 7,099,883 66,128 0.93% 17,085,853 41.9% Large General 7,094,355 5,836,592 1,257,763 21.55% 28,974,249 29,285,339 (311,090) (1.06%) 79,262,499 36.6% Industrial 12,704,000 12,004,000 700,000 5.83% 54,145,000 55,143,000 (998,000) (1.81%) 134,707,856 40.2% Total KWH Sold 25,864,757 22,798,712 3,066,045 13.45%1 109,932,931 111,210,533 (1,277,602) (1.15%)l 284,100,710 38.7% Overall customer revenue & usage increased because of the additional April days billed in May due to the software conversion. Operating Expense is up for the month of May & YTD mainly due to the Software System installment payments. Sales for Resale of $137,718 consisted of $18,774 in market sales, $34,400 in the monthly tolling fee from Transalta, $18,044 in sales to Transalta, and $66,500 in capacity sales to SMMPA. May 2016 Sales for Resale of $118,073 consisted of $6,956 in market sales, $34,400 in the monthly tolling fee from Transalta, $34,717 in Transalta sales, and $42,000 in capacity sales to SMMPA. May 2015 Sales for Resale of $50,646 consisted of $888 in market sales, $34,400 in in Transalta tolling fees, and $15,358 in sales to Transalta. Overall Purchased Power increased by $113,914. MIRES purchases increased by $46,803 and market purchases increased by $67,111 The power cost adjustment for May 2017 was $.00173/kwhr bringing in an additional $44,311 of revenue for the month and $557,376 for the year. Last year's power cost adjustments through May of 2016 generated $180,955 in additional revenue. May May YTD YTD 2017 HUC 2017 2016 Change 2017 2016 Change Budget Target Gross Margin % 32.0% 31.4% 0.6% 25.8% 29.1% -3.3% 22.5% Operating Income Per Revenue $ (%) 5.1% 4.6% 0.4% -3.9% -0.5% -3.3% -3.0% Net Income Per Revenue $ (%): 5.5% 5.2% 0.2% -2.7% -0.2% -2.4% -2.9% III Customer Revenue per KWH: $0.0844 $0.0851 -$0.0007 $0.0890 $0.0865 $0.0024 $0.0881 II Total Power Supply Exp. per KWH: $0.0611 $0.0628 -$0.0017 $0.0713 $0.0656 $0.0057 $0.0758 Overall customer revenue & usage increased because of the additional April days billed in May due to the software conversion. Operating Expense is up for the month of May & YTD mainly due to the Software System installment payments. Sales for Resale of $137,718 consisted of $18,774 in market sales, $34,400 in the monthly tolling fee from Transalta, $18,044 in sales to Transalta, and $66,500 in capacity sales to SMMPA. May 2016 Sales for Resale of $118,073 consisted of $6,956 in market sales, $34,400 in the monthly tolling fee from Transalta, $34,717 in Transalta sales, and $42,000 in capacity sales to SMMPA. May 2015 Sales for Resale of $50,646 consisted of $888 in market sales, $34,400 in in Transalta tolling fees, and $15,358 in sales to Transalta. Overall Purchased Power increased by $113,914. MIRES purchases increased by $46,803 and market purchases increased by $67,111 The power cost adjustment for May 2017 was $.00173/kwhr bringing in an additional $44,311 of revenue for the month and $557,376 for the year. Last year's power cost adjustments through May of 2016 generated $180,955 in additional revenue. HUTCHINSON UTILITIES COMMISSION GAS DIVISION FINANCIAL REPORT FOR MAY, 2017 % Chna 1 2017 2016 Diff. 18.7% $ 5,302,042 2017 2016 Diff. Gas Division $ 317,649 $ 42,704 0.7% $ 271,541 Customer Revenue $ 560,848 $ 472,544 $ 88,304 Transportation $ 71,126 $ 63,930 $ 7,195 Electric Div. Transfer $ 54,308 $ 53,931 $ 378 Other Revenues $ 18,249 $ 18,325 $ (76) Interest Income $ 2,793 $ 3,403 $ (610) TOTAL REVENUES $ 707,324 $ 612,133 $ 95,191 Salaries & Benefits $ 81,557 $ 103,006 $ (21,448) Purchased Gas $ 284,518 $ 261,543 $ 22,975 Operating Expense $ 72,896 $ 37,444 $ 35,453 Depreciation $ 84,000 $ 88,000 $ (4,000) Transfers (City) $ 30,594 $ 29,639 $ 955 Debt Interest $ 61,258 $ 65,125 $ (3,867) TOTAL EXPENSES $ 614,824 $ 584,756 $ 30,068 NET PROFIT/(LOSS) $ 92,499 $ 27,377 $ 65,122 % Chna 1 2017 2016 Diff. 18.7% $ 5,302,042 $ 5,115,840 $ 186,202 11.3% $ 360,353 $ 317,649 $ 42,704 0.7% $ 271,541 $ 269,653 $ 1,889 (0.4%) $ 107,864 $ 103,859 $ 4,006 (17.9%) $ 28,312 $ 7,939 $ 20,373 15.6% $ 6,070,112 $ 5,814,939 $ 255,173 (20.8%) $ 498,059 $ 531,431 $ (33,372) 8.8% $ 3,086,652 $ 2,930,105 $ 156,547 94.7% $ 268,956 $ 250,379 $ 18,577 (4.5%) $ 420,000 $ 440,000 $ (20,000) 3.2% $ 152,971 $ 160,841 $ (7,869) 0.0% $ 306,292 $ 325,625 $ (19,333) 5.1% $ 4,732,930 $ 4,638,381 $ 94,549 237.9%1 $ 1,337,182 $ 1,176,558 $ 160,624 Notes/Graphs: Net Profits increased by $65,122 in the gas division due to increased sales revenue and only a slight increase in gas expenses due to the overall restructured contracted gas pricing. The fuel credit adjustment for May 2017 was $2.49919/MCF providing credits to the customers totalling $113,901 for the month and $310,593 for the year. Fuel credit adjustments totalled $44,625 through May 2016. 41.696 of Year Comp. % Chna Full Yr Bud % of Bud 3.6% $ 11,557,591 45.9% 13.4% $ 734,878 49.0% 0.7% $ 651,700 41.7% 3.9% $ 218,608 49.3% 256.6% $ 50,000 56.6% 4.4% $ 13,212,777 45.9% (6.3%) $ 1,278,092 39.0% 5.3% $ 6,782,224 45.5% 7.4% $ 836,676 32.1% (4.5%) $ 1,008,000 41.7% (4.9%) $ 367,131 41.7% 5.9% $ 735,100 41.7% 2.0% $ 11,007,223 43.0% 13.7%1 S 2.205.554 60.6% Notes/Graphs: Net Profits increased by $65,122 in the gas division due to increased sales revenue and only a slight increase in gas expenses due to the overall restructured contracted gas pricing. The fuel credit adjustment for May 2017 was $2.49919/MCF providing credits to the customers totalling $113,901 for the month and $310,593 for the year. Fuel credit adjustments totalled $44,625 through May 2016. 41.6% of Year Comp. May 2017 2016 Diff. % Chna 2017 2016 Diff. % Chna Full Yr Bud % of Bud Gas Division Change Budget Target Gross Margin % 57.0% 54.0% 3.0% 47.1% 47.8% -0.7% 46.2% �1111����111111� Residential 20,808,110 14,413,092 6,395,018 44.37% 223,354,343 225,415,131 (2,060,788) (0.91%) 449,582,000 49.7% Commercial 17,923,243 11,270,737 6,652,506 59.02% 167,540,025 160,071,508 7,468,517 4.67% 420,183,000 39.9% Industrial 59,305,888 50,563,211 8,742,677 17.29% 398,684,269 374,837,924 23,846,345 6.36% 786,836,000 50.7% Total CF Sold 98,037,241 76,247,040 21,790,201 28.58%1 789,578,637 760,324,563 29,254,074 3.85%1 1,656,601,000 47.7% Notes/Graphs: Net Profits increased by $65,122 in the gas division due to increased sales revenue and only a slight increase in gas expenses due to the overall restructured contracted gas pricing. The fuel credit adjustment for May 2017 was $2.49919/MCF providing credits to the customers totalling $113,901 for the month and $310,593 for the year. Fuel credit adjustments totalled $44,625 through May 2016. May May YTD YTD 2017 HUC 2017 2016 Change 2017 2016 Change Budget Target Gross Margin % 57.0% 54.0% 3.0% 47.1% 47.8% -0.7% 46.2% �1111����111111� Operating Income Per Revenue $ (%) 19.3% 12.0% 7.3% 25.5% 24.4% 1.1% 20.6% Net Income Per Revenue $ (%): 13.5% 4.6% 8.8% 22.5% 20.6% 1.9% 17.0% Contracted Customer Rev. per CF: $0.0036 $0.0033 $0.0003 $0.0040 $0.0033 $0.0007 $0.0041 Customer Revenue per CF: $0.0090 $0.0120 -$0.0030 $0.0095 $0.0101 -$0.0006 $0.0096 Total Power Supply Exp. per CF: $0.0030 $0.0036 ($0.0006) $0.0040 $0.0039 $0.0001 $0.0042 Notes/Graphs: Net Profits increased by $65,122 in the gas division due to increased sales revenue and only a slight increase in gas expenses due to the overall restructured contracted gas pricing. The fuel credit adjustment for May 2017 was $2.49919/MCF providing credits to the customers totalling $113,901 for the month and $310,593 for the year. Fuel credit adjustments totalled $44,625 through May 2016. Current Assets UnrestrictedlUndesignated Cash Cash Petty Cash Designated Cash Capital Expenditures - Current Yr Payment in Lieu of Taxes Rate Stabilization - Electric Rate Stabiliation - Gas Catastrophic Funds Restricted Cash Bond Interest Payment 2003 Bond Interest Payment 2012 Debt Service Reserve Funds Total Current Assets Receivables Accounts (net of uncollectible allowances) Interest Total Receivables HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED MAY 31, 2017 Electric Gas Total Total Net Change Division Division 2017 2016 Total (YTD) 6,479,215.63 5,619,023.75 12,098,239.38 9,954,455.41 2,143,783.97 680.00 170.00 850.00 850.00 - 926,471.57 1,489,054.41 2,415,525.98 1,238,158.33 1,177,367.65 829,200.00 367,131.00 1,196,331.00 1,305,256.00 (108,925.00) 314,539.41 - 314,539.41 549,599.53 (235,060.12) - 646,058.37 646,058.37 581,064.65 64,993.72 400,000.00 100,000.00 500,000.00 500,000.00 - 87,784.36 - 87,784.36 72,652.85 15,131.51 - 1,140,474.99 1,140,474.99 775,375.22 365,099.77 - 2,188,694.02 2,188,694.02 2,188,694.02 - 9,037,890.97 11,550,606.54 20,588,497.51 17,166,106.01 3,422,391.50 1,944,627.06 660,434.22 2,605,061.28 2,449,625.55 155,435.73 22,224.58 9,191.09 31,415.67 - 31,415.67 1,966,851.64 669,625.31 2,636,476.95 2,449,625.55 186,851.40 Other Assets Inventory 1,164,971.87 410,080.77 1,575,052.64 1,529,138.22 45,914.42 Prepaid Expenses (8,317.68) 28,679.51 20,361.83 38,989.82 (18,627.99) Sales Tax Receivable 156,792.69 - 156,792.69 135,750.85 21,041.84 Deferred Outflows- Electric 1,746,060.00 - 1,746,060.00 388,200.00 1,357,860.00 Deferred Outflows - Gas - 582,020.00 582,020.00 129,400.00 452,620.00 Total Other Assets 3,059,506.88 1,020,780.28 4,080,287.16 2,221,478.89 1,858,808.27 Total Current Assets 14,064,249.49 13,241,012.13 27,305,261.62 21,837,210.45 5,468,051.17 Capital Assets Land & Land Rights 690,368.40 3,899,918.60 4,590,287.00 4,590,287.00 - Depreciable Capital Assets 89,040,627.70 41,261,970.45 130,302,598.15 129,510,003.63 792,594.52 Accumulated Depreciation (51,172,591.86) (14,745,901.36) (65,918,493.22) (62,308,667.19) (3,609,826.03) Construction - Work in Progress 536,294.25 7,254.64 543,548.89 231,451.93 312,096.96 Total Net Capital Assets 39,094,698.49 30,423,242.33 69,517,940.82 72,023,075.37 (2,505,134.55) Total Assets 53,158,947.98 43,664,254.46 96,823,202.44 93,860,285.82 2,962,916.62 Current Liabilities Current Portion of Long-term Debt Bonds Payable Bond Premium Accounts Payable Accrued Expenses Accrued Interest Accrued Payroll Total Current Liabilities Long -Term Liabilities Noncurrent Portion of Long-term Debt 2003 Bonds 2012 Bonds Bond Premium 2012 Pension Liability- Electric Pension Liability- Nat Gas Accrued Vacation Payable Accrued Severance Deferred Outflows - Electric Deferred Outflows - Nat Gas Total Long -Term Liabilities Net Position Retained Earnings Total Net Position HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED MAY 31, 2017 Electric Gas Total Division Division 2017 125,000.00 3,505,688.71 (0.05) 44,181.92 3,674,870.58 465,000.00 4,226,202.00 286,389.60 66,478.09 569,910.00 5,613,979.69 1,220,000.00 185,608.32 1,502,570.66 0.10 55, 540.44 2,963,719.52 15,195, 000.00 1,577,670.35 1,408,734.00 92,553.90 25,572.23 189,970.00 18,489,500.48 1,345,000.00 185,608.32 5,008,259.37 0.05 99,722.36 6,638,590.10 465,000.00 15,195, 000.00 1,577,670.35 4,226,202.00 1,408,734.00 378,943.50 92,050.32 569,910.00 189,970.00 24,103,480.17 Total 2016 1,285,000.00 185,608.32 4,073,591.57 0.08 293,224.54 5,837,424.51 590,000.00 16,415,000.00 1,763,278.67 2,775,239.00 925,080.00 356,049.33 90,772.86 396,226.00 132,076.00 23,443,721.86 43,870,097.71 22,211,034.46 66,081,132.17 64,579,139.45 43,870,097.71 22,211,034.46 66,081,132.17 64,579,139.45 Net Change Total (YTD) 60,000.00 934,667.80 (0.03) (193,502.18) 801,165.59 (125,000.00) (1,220,000.00) (185,608.32) 1,450,963.00 483,654.00 22, 894.17 1,277.46 173,684.00 57,894.00 659,758.31 1, 501, 992.72 1,501,992.72 Total Liabilities and Net Position 53,158,947.98 43,664,254.46 96,823,202.44 93,860,285.82 2,962,916.62 Hutchinson Utilities Commission Cash -Designations Report, Combined 5/30/2017 Savings, Checking, Investments Total Operating Funds Debt Reserve Requirements Debt Reserve Requirements Total Reserve Requirement Operating Reserve Rate Stabalization Funds PILOT Funds Catastrophic Funds Capital Reserves Total Earmarked Funds varies varies varies 20,588,497.51 20,476,799.97 111,697.54 20, 588,497.51 20,476,799.97 111,697.54 Bond Covenants -sinking fund 877,328.07 877,328.07 Bond Covenants -1 year Max. P & 1 2,188,694.02 2,188,694.02 3,066,022.09 3,066,022.09 Min 60 days of 2017 Operating Bud. Charter Risk Mitigation Amount 5 Year CIP ( 2017-2021 Fleet & Infrastructure Maintenance) 5,973,256.00 5,973,256.00 960,597.78 960,597.78 1,196, 331.00 1,196, 331.00 Change in 500,000.00 Financial 3,450,000.00 12,080,184.78 Balance, Balance, Cash/Reserve 31.8% Institution Current Interest Rate Annual Interest May 2017 April 2017 Position 0.05% 1.31% 2.17% 1.25% 11,550,607 20,588,498 Savings, Checking, Investments Total Operating Funds Debt Reserve Requirements Debt Reserve Requirements Total Reserve Requirement Operating Reserve Rate Stabalization Funds PILOT Funds Catastrophic Funds Capital Reserves Total Earmarked Funds varies varies varies 20,588,497.51 20,476,799.97 111,697.54 20, 588,497.51 20,476,799.97 111,697.54 Bond Covenants -sinking fund 877,328.07 877,328.07 Bond Covenants -1 year Max. P & 1 2,188,694.02 2,188,694.02 3,066,022.09 3,066,022.09 Min 60 days of 2017 Operating Bud. Charter Risk Mitigation Amount 5 Year CIP ( 2017-2021 Fleet & Infrastructure Maintenance) 5,973,256.00 5,973,256.00 960,597.78 960,597.78 1,196, 331.00 1,196, 331.00 500,000.00 500,000.00 3,450,000.00 3,450,000.00 12,080,184.78 12,080,184.78 YE YE YE YE YTD 2013 2014 2015 2016 2017 Debt to Asset 29.7% 28.8% 32.0% 32.2% 31.8% Current Ratio 2.08 2.26 2.52 3.06 3.25 RONA 0.80% 0.05% 1.31% 2.17% 1.25% HUC Target Notes/Graphs: Change in Cash Balance (From 12/31/14 to5/31/2017) Month End Electric Elec. Change Natural Gas Gas Change Total Total Change 5/31/2017 9,037,891 11,550,607 20,588,498 12/31/2016 8,612,801 425,090 9,500,074 2,050,533 18,112,875 2,475,623 12/31/2015 6,170,790 2,442,011 9,037,373 462,701 15,208,163 2,904,712 12/31/2014 3,598,821 2,571,969 6,765,165 2,272,208 10,363,986 4,844,177 Hutchinson Utilities Commission Cash -Designations Report, Electric 5/30/2017 Debt Restricted Requirements Bond Covenants -sinking fund 62,703.10 62,703.10 Operating Reserve Min 60 days of 2017 Operating Bud. 4,306,719.00 Change in Financial Balance, Balance, Cash/Reserve Institution Current Interest Rate Annual Interest May 2017 April 2017 Position r r i r � r iii rirr y�y0/� r MIF/rr�1Yf�R}��'f�1�'rh?�IiR'������((fffllllllllllllllllllll��� Risk Mitigation Amount 400,000.00 400,000.00 Savings, Checking, Investments varies varies varies 20,588,497.51 20,476,799.97 111,697.54 Total HUC Operating Funds 20,588,497.51 20,476,799.97 111,697.54 Debt Restricted Requirements Bond Covenants -sinking fund 62,703.10 62,703.10 Operating Reserve Min 60 days of 2017 Operating Bud. 4,306,719.00 4,306,719.00 Rate Stabalization Funds $400K -$1.2K 314,539.41 314,539.41 PILOT Funds Charter 829,200.00 829,200.00 Catastrophic Funds Risk Mitigation Amount 400,000.00 400,000.00 Capital Reserves 5 Year CIP ( 2017-2021 Fleet & Infrastructure Maintenance) 2,750,000.00 2,750,000.00 Total Designated Funds Current Ratio 2.77 8,600,458.41 8,600,458.41 YE YE YE YE APPA Ratio APPA Ratio HUC 2013 2014 2015 2016 w/10-50% Gen 5K -10K Cust. Target Debt to Asset Ratio 8.0% 7.4% 13.2% 16.1% 61.0% 29.5% III Current Ratio 2.77 2.48 2.95 3.57 NA 1.81 RONA -2.7% -3.1% -1.2% -0.4% NA NA >0% Notes/Graphs: Hutchinson Utilities Commission Cash -Designations Report, Gas 5/30/2017 Savings, Checking, Investments varies varies Total HUC Operating Funds Debt Restricted Requirements Bond Covenants -sinking fund Debt Restricted Requirements Bond Covenants -1 year Max. P & I Total Restricted Requirements varies 20,588,497.51 20,476,799.97 111,697.54 20, 588,497.51 20,476,799.97 111,697.54 814,624.97 814,624.97 2,188,694.02 2,188,694.02 3,003,318.99 3,003,318.99 Operating Reserve Min 60 days of 2017 Operating Bud. 1,666,537.00 1,666,537.00 Rate Stabalization Funds $200K -$600K Change in 646,058.37 Financial Charter 367,131.00 Balance,"April Catastrophic Funds Cash/Reserve 100,000.00 Institution Current Interest Rate Annual Interest May 2017 700,000.00 Position f(r 3,479,726.37 3,479,726.37 2.59 TBD TBD Savings, Checking, Investments varies varies Total HUC Operating Funds Debt Restricted Requirements Bond Covenants -sinking fund Debt Restricted Requirements Bond Covenants -1 year Max. P & I Total Restricted Requirements varies 20,588,497.51 20,476,799.97 111,697.54 20, 588,497.51 20,476,799.97 111,697.54 814,624.97 814,624.97 2,188,694.02 2,188,694.02 3,003,318.99 3,003,318.99 Operating Reserve Min 60 days of 2017 Operating Bud. 1,666,537.00 1,666,537.00 Rate Stabalization Funds $200K -$600K 646,058.37 646,058.37 PILOT Funds Charter 367,131.00 367,131.00 Catastrophic Funds Risk Mitigation Amount 100,000.00 100,000.00 Capital Reserves 5 Year CIP ( 2017-2021 Fleet & Infrastructure Maintenance) 700,000.00 700,000.00 Total Earmarked Funds Current Ratio 1.31 3,479,726.37 3,479,726.37 YE YE YE YE HUC 2013 2014 2015 2016 APGA Ratio APGA Ratio Target Debt to Asset 58.6% 55.6% 54.8% 51.5% TBD TBD <50% Current Ratio 1.31 2.07 2.17 2.59 TBD TBD RONA 5.8% 4.3% 4.7% 5.6% TBD TBD W N L t i 2 C L v U ' 2 � QQQQoo^o QQQQQQQ ZZ ZZ�� � O ZZZZZZZ N I ry N izz O O O 0 0 0 0 0 0 N O O M M O O N M O M N 1- O O M MNV r (O M O N W W- (O V M M V O O) (0 M O) 1: (0 (0 N (O 000000000 0 M Oln OOIn M 000000 N N M 0 O V O N M N O O M M LOM N O) O) O) M O N M CO M O O M N N 1- N M N N OO O) O) I- V 00 V (O I- M r- V O M M M M S (O . V N W O) OO O W Co O) 0 O) O) M ') 0000000000 0000000O0 0 0 0 0 0 99999999 O N O O M M 0 0 N 00000000 O LO O L O1- 1- 0 0 M 00000000 O M N, N (O M O N O O 0 0 0 0 0 0 O 0 0 0 0 M V M LQ V M M M M M OO M O0O)00 O) 1-(O (O V V V V V (O O N (O M O M M (O I- (O N N N N N N M O 004 N M N N N N O M N 0 0 M O LO O O M M 0000000 O N N M V M (001- 0 OOOOOIn M O M M M V M r M 7 0 M O O O M N r O N N OO OO (\I MM r-00 O) OO O) M M M W V O M M M M 0 M V (O M LO LO LO 01i 01i Oi Oi OD 0 (O LO V M 1- (O O V V V V V M O) O M M O M M M (O M N N N N N N V O O N N M N N N N O M N 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 010 990.000000 0 . . . . . 0 O 0 0 0 0 0 0 0 0 O 000000010 000000000 0000000 O 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 O oouiuimoom 0 00000000 V V V V V 0 O N M O O M M M M O N N N N N N M O O N N M N N N N 1 O OD OD OD OD W M O O W W O 00000000 0000000 0 o N N N N N N N N O o N N N N N N N O 0001'- 1'-(O 1' -Ln O N N N N O N N� 0 0 0 0 0 0 O N N N 0 0 0 M O 00 0 0 0000-00- 00000-0 0 00 0 0 0 0 0 0 0 0 0 0 0 0 000 0 0 0 0 0 3333333 N N N N N N N N N N N N N N N Izz Izz 00 1zz 1zz 1zz 6 1zz Izz Izz oO 6 6 6 � 77 77 77 O O O � N0 00 N N N N N N 6 V6 M O M M M V V V O 000000 0- 000000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o O O O O O M O M O O O V 0 O 0 M M O) M O) O r Wr 00 O) N O O) O N O W r W M (O N 0 0 0 0 0 0 0 0 0 0 0 0 0 ( 0 00000000 Oln 000000 In O M M M O O) "(000 r M O N O O M O O) r W W r O N- -- N NN - N M LO (n n v} F Z W m O N N N NN N N F -0-0 C C C C C C y0 w Z e V O) O O M O U U -2-2-2-2-2-2-Y a Y J N N N N N J J m m ~ 3 3 3 3 3 3 3 U U U U U LL LL LL 0 N N N O 0) 0) 0) 0) 0) 0) 0) C C C C C C C 0 0 0 0 0 0 0S N N N N N N N O) O) O) O) O) O) O) 0) C C C C C C C N N N N N N N N LL LL LL LL LL LL LL LL (6 (6 (6 (6 (6 (6 (6 U U U U U U U ti > o ri + '^ N d� 0 0 0 0 0 0 0 n v} v (O M M O N O e V O) O O M O O N N N O O . 0 0 o o c r m C a J mrn v 000 rn m f6 V O) 0o O) N M O O O W> M 00 N LO r V O O r O M O N U N Qi (6 m u)N M V M 0) ' + J N M V M ti W a m m D 0o o 0 0 0 O o o 6 o o o o o o o o o o o o o o o o o N O ri ri w w 4* oo o s o u0i ci O O 04 04 W ttm (R N N N N off° O ♦+ C C f6 LO LO EH y o o o � U m 0 v v 0 0 0 0 o N ,,. O O V Loo G e F N M V O r co m a AL O O M O L O M M M r u a v O N V r V 3 ER (O O) 00 oc (O 00 N W W' N i cli N 1- N N M r Nr- O O N 0 F f` cy 0 r o 0 0 0 0 O M M V O O V M O O N M V O J �...., O O M O w O M M O (O v 7 ER O N V 0'g O) (O r (O N i O I%; co r N 1- M N O O r r N 0 W N U I ~ N o m o Q U 1 a) O Com a � (6 0) _ 0 � E N ~ c m O 2 E.� d N 0) .2 rn O o 3 E m U (7 E `ow o C7 ELECTRIC DIVISION Operating Revenue May 2017 CLASS AMOUNT KWH /KWH Street Lights $0.54 10 $0.05400 Electric Residential Service $417,156.89 4,253,360 $0.09808 All Electric Residential Service $15,158.94 151,946 $0.09977 Electric Small General Service $158,383.21 1,661,096 $0.09535 Electric Large General Service $637,717.48 7,094,355 $0.08989 Electric Large Industrial Service $953,931.92 12,704,000 $0.07509 Total $2,182,348.98 25,864,767 $0.08438 Power Adjustment $0.00173 Rate Without Power Adjustment $0.08265 Electric Division Year -to -Date 02017$Amount 02016$Amount M2017KWH/10 02016 KWH/10 12,000,000 11,500,000 11,000,000 10,500,000 10,000,000 9,500,000 9,000,000 8,500,000 8,000,000 7,500,000 7,000,000 6,500,000 6,000,000 5,500,000 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Street Lights Residential All Elec. Small Gen. Large Gen. Large For Resale Total Resid. Srv. Srv. Industrial NOTE: Sales for resale includes capacity sales, market sales and Transalta sales. NATURAL GAS DIVISION Operating Revenue May 2017 CLASS AMOUNT MCF /MCF Residential $170,360.13 20,808 $8.18724 Commercial $118,798.65 17,923 $6.62828 Large Industrial $271,689.37 59,306 $4.58114 Total $560,848.15 98,037 $5.72078 Fuel Adjustment -$0.00250 Rate Without Fuel Adjustment $8.22078 Natural Gas Division Year -to -Date ® 2017 $ Amount o 2016 $ Amount ® 2017 MCF o 2016 MCF 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Gas Residential Gas Commercial Large Industrial Total t|�; k | ) 8 )0 01 7 J� §/_ �k a k }�c4 f,0—a,,======Q ¥q)E k/ 0 (5 C/ #2-° r7 77� #t{e )�F-) j k r� � r� �\\� \ol q/- <<< @ C14 C14 § C14 C14 C\L kCIL 2 -LL LL _ ) /E (U)� / LU / LU / \ r «_ _/< —®`f!/j/] : ƒ //)/}}7333/ \ § = am»e=w=== \ \ � G E ] t|�; k | ) 8 )0 01 7 J� §/_ �k a k }�c4 ¥q)E k/ cl) / (5 C/ #2-° r7 77� #t{e )�F-) j k � r� �\\� \ol q/- <<< @ k/ r� C14 C14 C14 C14 C\L kCIL r \ \ \ \ E ] e e ] e \_±))_ 0— \\\\\\ 0—}U) U) \�\ \\{\�\\\F co co .2 / / / / / / / / / / / / / / / / / / / U') \ 4 0 _ \ _\ \ ] )0_/ \ r %t5 \E2 \ 0 U) R 3 \j///§` _ ��\\\\\\ \\ / )\ / ))2222// Electric Production Work Total Total Percentage Order Description Materials Labor Budgeted Actual Difference Completed 11701 Plant 1 Door & Window Replacement $ 150,000.00 $ 20,000.00 $ 170,000.00 $ - $ (170,000.00) 0% 11702 Unit #8 Field Breaker/Voltage Control 95,000.00 5,000.00 $ 100,000.00 56,180.22 $ (43,819.78) 50% 11703 Unit #8 Boiler Non -Return Valve 40,000.00 1,000.00 $ 41,000.00 4,924.73 $ (36,075.27) 5% 11704 Plant 1 Alarm Panel Upgrade 10,000.00 6,000.00 $ 16,000.00 - $ (16,000.00) 0% 11705 Unit #1 Control System Batteries 8,500.00 - $ 8,500.00 1,816.97 $ (6,683.03) 0% 11706 Plant 1 Electrical Panel Upgrades 10,000.00 - $ 10,000.00 172.20 $ (9,827.80) 0% 11707 Unit #1 Gas Valve Upgrade - - $ - 57,959.49 $ 57,959.49 25% 11708 Unit #1 Gas Valve Upgrade - - $ - 288,788.50 $ 288,788.50 25% $ 163,500.00 $ 12,000.00 $ 175,500.00 $ 409,842.11 $ 234,342.11 Work Order Description 21701 Pole Repair or Replacement 21702 Hutch Substation Roof Replacement 21703 Station Equipment 21704 Poless, Towers, Fixtures N Hwy 15 Fdr 12A 21705 Right of Way Clearing 21706 Duct for Reconductor 21707 Reconductor Feeder 17 21708 Reconductor Feeder 16 21709 Hutchinson High School 21710 New Developments 21711 Hutchinson High School 21712 Transformer Replacements 21713 New Developments 21714 Meters Electric Distribution Total Total Percentage Materials Labor Budgeted Actual Difference Completed 15,000.00 - 15,000.00 - $ (15,000.00) 0% 10,000.00 - 10,000.00 - $ (10,000.00) 0% 10,000.00 - 10,000.00 - $ (10,000.00) 0% 10,000.00 5,000.00 15,000.00 - $ (15,000.00) 0% 2,500.00 2,500.00 - $ (2,500.00) 0% 20,000.00 65,000.00 85,000.00 70,646.78 $ (14,353.22) 0% 45,000.00 45,000.00 90,000.00 16,105.35 $ (73,894.65) 0% 20,000.00 25,000.00 45,000.00 - $ (45,000.00) 0% 35,000.00 25,000.00 60,000.00 2,636.32 $ (57,363.68) 0% 50,000.00 - 50,000.00 9,127.64 $ (40,872.36) 0% 25,000.00 1,000.00 26,000.00 7,810.14 $ (18,189.86) 0% 40,000.00 10,000.00 50,000.00 - $ (50,000.00) 0% 50,000.00 - 50,000.00 2,131.97 $ (47,868.03) 0% 30,000.00 - 30,000.00 4,148.88 $ (25,851.12) 5% $ 360,000.00 $ 178,500.00 $ 538,500.00 $ 112,607.08 $ (425,892.92) Work Order Description 51701 Vactron 51702 F550 Dump Truck 51703 F550 Super Duty Bucket Truck 51704 Tractor Backhow 51705 Lift Administrative Total Total Percentage Budgeted Actual Difference Completed 60,000.00 37,864.00 22,136.00 0% 30,000.00 - 30,000.00 0% 130,000.00 - 130,000.00 0% 60,000.00 61,827.19 (1,827.19) 0% 17,000.00 16,733.20 $ (266.80) 100% $ 297,000.00 $ 116,424.39 $ (180,575.61) Total Labor Budgeted 3,000.00 $ 503,000.00 $ 3,000.00 $ 503,000.00 $ 10,000.00 $ 210,000.00 15,000.00 $ 45,000.00 1,000.00 $ 41,000.00 5,000.00 $ 20,000.00 3,000.00 $ 18,000.00 20,000.00 $ 75,000.00 3,500.00 $ 73,500.00 3,500.00 $ 23,500.00 - $ 5,000.00 Total Actual Difference 1,404.75 $ (501,595.25) - $ (503,000.00) 226.50 $ (209,773.50) 80,460.92 $ 35,460.92 157.69 $ (40,842.31) 163.39 $ (19,836.61) - $ (18,000.00) 24,010.66 $ (50,989.34) 5,694.68 $ (67,805.32) 8,087.68 $ (15,412.32) - $ (5,000.00) $ 1,450,000.00 $ 67,000.00 $ 1,517,000.00 $ 120,206.27 $ (1,396,793.73) Percentage Completed 0% 0% 0% 0% 0% 0% 0% 10% 5% 0% 0% Natural Gas Work Order Description Materials 61701 Transmission Lateral to HCP - ROW Easements $ 500,000.00 $ 61702 Transmission Lateral to HCP - Materials and Permits $ 500,000.00 $ 61703 Interconnect Station - Hanska 200,000.00 61704 Misc Developments and Improvements 30,000.00 61705 Specific Gravity Meter - Hutchinson 40,000.00 61706 SCADA Equipment - Hanska 15,000.00 61708 Regulator Station Improvements 15,000.00 61709 Service Lines 55,000.00 61710 Meters, Regulators, AMI Modules 70,000.00 61711 Industrial Metering and Regulation 20,000.00 61712 Gas Detection Equipment 5,000.00 Total Labor Budgeted 3,000.00 $ 503,000.00 $ 3,000.00 $ 503,000.00 $ 10,000.00 $ 210,000.00 15,000.00 $ 45,000.00 1,000.00 $ 41,000.00 5,000.00 $ 20,000.00 3,000.00 $ 18,000.00 20,000.00 $ 75,000.00 3,500.00 $ 73,500.00 3,500.00 $ 23,500.00 - $ 5,000.00 Total Actual Difference 1,404.75 $ (501,595.25) - $ (503,000.00) 226.50 $ (209,773.50) 80,460.92 $ 35,460.92 157.69 $ (40,842.31) 163.39 $ (19,836.61) - $ (18,000.00) 24,010.66 $ (50,989.34) 5,694.68 $ (67,805.32) 8,087.68 $ (15,412.32) - $ (5,000.00) $ 1,450,000.00 $ 67,000.00 $ 1,517,000.00 $ 120,206.27 $ (1,396,793.73) Percentage Completed 0% 0% 0% 0% 0% 0% 0% 10% 5% 0% 0% HUTCHINSON UTILITIES COMMISSION���� Board Action Form �'Ylkll'M1'k� Agenda Item: Policies Review Presenter: Jeremy Carter Agenda Item Type: Time Requested (Minutes): 5 Review Policies Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As part of HUC's standard operating procedures, a continual policy review is practiced. This month, the following policies were reviewed and no changes are recommended on these policies at this time: I. Delegation of Authority II. Hutchinson Utilities Commission III. Establishing a New Electric/Natural Gas Account IV. Complaint/Grievance Procedures V. Employee Conduct BOARD ACTION REQUESTED: None Fiscal Impact: Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: Delegation of Authority From time to time the General Manager will be absent. When the situation warrants, every effort to contact the General Manager will be made. If contacting the General Manager is unsuccessful and the situation still exists, the General Manager's full authority will be delegated to the Natural Gas Division Director. If contacting the Director is unsuccessful and the situation still exists= the General Manager's full authority is delegated to the Department Managers; Transmission and Distribution, Engineering Services, Production, Financial/Customer Service. Once Authority has been delegated, the General Manager will be informed of any actions taken or decisions made by the respective director or managers. 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 policies 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. Public/Customer 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 www.hutchinsonutilities.com Establishing a New Electric/Natural Gas Account New services and meters are read or installed only during normal business hours. A new service installation requires a 24-hour notice. COMPLAINT/GRIEVANCE PROCEDURE It is the Commission's policy to provide an equitable process which employees may use to advance complaints and grievances. An employee may grieve any alleged violation of a written or verbal policy or procedure, disciplinary action other than an oral reprimand, or unsafe practice. Prior to initiating a grievance, an employee must discuss the complaint with the immediate Supervisor. If the complaint cannot be resolved informally through such discussion with the Director, Manager or Supervisor, the employee may choose to file a written grievance. The grievance must be filed with the Human Resources Director within ten (10) working days after the incident -giving rise to the grievance. The Human Resources Director shall attempt to resolve the grievance and shall provide the employee a written response no later than five (5) working days following receipt of the grievance. If the employee is dissatisfied with the Human Resource Director's response, the employee may file the grievance with the General Manager within five (5) days of the Human Resource Director's response. The General Manager shall attempt to resolve the complaint or grievance and shall provide the employee a written response not later than five (5) days following the receipt of the complaint. If dissatisfied with the General Manager's response, the employee may request a hearing on the grievance before the Hutchinson Utilities Commission. The Hutchinson Utilities Commission may choose to appoint an independent hearing officer to hear the grievance. An employee presenting a complaint or grievance shall not be subject to retaliation or reprisal. COMPLAINT/GRIEVANCE PROCEDURE NON-EXEMPT See Union Contract. EMPLOYEE CONDUCT All HUC employees are expected to conduct themselves in a manner that creates a work environment enabling employees to work effectively and to promote positive customer relations. HUC employees are required to adhere to the following standards of conduct while on the job. • To behave in a courteous, business -like manner and to comply with HUC policies and work rules. • Refrain from any and all action, which may be detrimental to the safety or work of other employees or to the goals of HUC. • To communicate openly and honestly with management, other employees, and the public. • To share responsibility for personal development and growth. • To continually strive for excellence in work product and habits. EMPLOYEE CONDUCT NON-EXEMPT All HUC employees are expected to conduct themselves in a manner that creates a work environment enabling employees to work effectively and to promote positive customer relations. HUC employees are required to adhere to the following standards of conduct while on the job. • To behave in a courteous, business -like manner and to comply with HUC policies and work rules. • Refrain from any and all action, which may be detrimental to the safety or work of other employees or to the goals of HUC. • To communicate openly and honestly with management, other employees, and the public. • To share responsibility for personal development and growth. • To continually strive for excellence in work product and habits.