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10-31-2018 HUCCPHUTCHINSON UTILITIES COMMISSION AGENDA REGULAR MEETING October 31st, 2018 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. Budget Payment Plan ii. Explanation of Billing Procedure iii. Disconnection of Residential Services by HUC iv. Disconnection of Commercial Services by HUC v. Vacation vi. Holidays vii. Life Insurance viii. Health/Dental Insurance ix. Disability Insurance x. Family & Medical Leave xi. Pregnancy & Parental Leave xii. Sick Leave xiii.Sick/Vacation Leave Donation b. Approve Changes 7. UNFINISHED BUSINESS a. None 8. NEW BUSINESS a. Approve Requisition #7746 — 2019 Ford F550 Chassis b. Approve HCP Reservation Agreement C. Approve Rescheduling the December Regular Commission Meeting to Wednesday, December 19, 2018 d. Award the Electrical Installation Bid to Quade Electric for Units 6 & 7 e. EDA Incubator Building Discussion f. Performance Pay Matrix Discussion 9. ADJOURN MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, September 26, 2018 Call to order — 3:00 p.m. Vice President Anthony Hanson called the meeting to order. Members present: Vice President Anthony Hanson; Secretary Robert Wendorff; Commissioner Don Martinez; Commissioner Matt Cheney; Attorney Marc Sebora: Absent: President Monty Morrow and GM Jeremy Carter Conflict of Interest 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Wendorff, second by Commissioner Martinez to approve the Consent Agenda. Motion carried unanimously. 3. Approve Financial Statements Jared Martig presented the financial statements. Overall net income increased by $13K mostly due to increased revenue from retail & wholesale sales and a reduction in transmission expense. Motion by Commissioner Martinez, second by Commissioner Cheney to approve the financial statements. Motion carried unanimously. 4. Open Forum 5. Communication a. City Administrator— Matthew Jaunich-Absent i. Dan Lang, Engineering Services Manager — Nothing to Report ii. Dave Hunstad, Electric Transmission/Distribution Manager — 1. Continuing to work on 2nd Ave project iii. Randy Blake, Production Manager - 1. Had the Electrical Installation Bid opening at 2pm today. Had four companies turn in bids. Look to have a Special Meeting in the next couple of weeks to Award Bid. iv. John Webster, Natural Gas Division Manager- Absent v. Jared Martig, Financial Manager- 1. Will be attending MRES Area Meeting in Alexandria October 24 c. Human Resources - Brenda Ewing — Absent d. Legal — Marc Sebora — Nothing to report e. General Manager — Jeremy Carter —Absent 6. Policies a. Review Policies i. Errors in Billing ii. Pay Periods, Paydays iii. Payroll Deductions iv. Overtime v. Compensation Plan vi. Travel Expenses No changes recommended at this time. b. Approve Changes Payment of Your Bill- As noted. Updated option number on automated phone system, updated language, and making customers aware that it is the responsibility of the customer to change/cancel credit/debit card information. All credit/debit card information is handled through 3rd party. Automatic Bill Payment Plan — As noted. Updated language and making customers aware that it is the responsibility of the customer to change/cancel credit/debit card information. iii. Worker's Compensation -Wording change Commissioner Hanson inquired what Staff has done to notify the customers of these changes. Mr. Martig noted that the website will be updated and Staff communicates the changes to the customers when they call. Motion by Commissioner Cheney, second by Commissioner Wendorff to approve the policy changes as recommended. Motion carried unanimously. 7. Unfinished Business 8. New Business a. Approve Requisition #007716 Braun Intertec Corp for Special Testing and Inspections. Mr. Blake presented Requisition #007716. In an effort to keep the building permit process flowing with no further delays, HUC took the responsibility of procuring the special testing and inspections portion of the project. Braun Intertec has done work for HUC in the past. Commissioner Martinez inquired if this is an expected cost in the project. Mr. Blake noted that is part of the overall project. After discussion, a motion by Commissioner Martinez, second by Commissioner Cheney to Approve Requisition #007716 Braun Intertec Corp for Special Testing and Inspections. Motion carried unanimously. 2 b. Cancel Requisition #007499 that was previously approved on March 28, 2018 and replace with Requisition #007717 for a 2018 Chevrolet Silverado. Mr. Hunstad presented requisition #007717. In compliance with the 2018 Fleet Management Program the Natural Gas Division is to replace vehicle #433, a 2006 Chevrolet 1500, 4WD w/utility body. This was originally approved in March 2018; however, this is no longer available. Valley Sales of Hutchinson has one available for purchase for $34,434.49; the estimated budget was $37K. After discussion, a motion by Commissioner Wendorff, second by Commissioner Cheney to approve canceling requisition #007499 and replace with Requisition #007717 for a 2018 Chevrolet Silverado. Motion carried unanimously. 9. Adjourn There being no further business, a motion by Commissioner Cheney, second by Commissioner Martinez to adjourn the meeting at 3:14p.m. Motion carried unanimously. Robert Wendorff, Secretary ATTEST: Monty Morrow, President 3 MINUTES Special Meeting — Hutchinson Utilities Commission Thursday, October 4, 2018 Call to order — 7:30 a.m. President Morrow called the meeting to order. Members present: President Monty Morrow; Vice President Anthony Hanson; Secretary Robert Wendorff; Commissioner Don Martinez; Commissioner Matt Cheney; General Manger Jeremy Carter; Attorney Marc Sebora Others present: Angie Radke. The purpose of the special meeting is to Award the Mechanical Installation Bid to Fagen Inc. for Units 6 & 7, Reject and Rebid all Electrical Installation Bids and to Approve Re - Advertising for Electrical Installation Bids. President Morrow asked the Commission if there was a motion to approve the Agenda. Motion by Commissioner Wendorff, second by Commissioner Hanson to approve the Agenda. Motion Carried unanimously. GM Carter presented the mechanical installation bid from Fagen Inc. The original estimated budget for this work along with the cooling tower upgrades was $3,558,224, which does not include the $51 K in HDR engineering services to design the upgraded system. Fagen Inc. came in as the lowest bidder with $3,376,037. An "Add Alternate Bid", was also provided by the various contractors as part of the mechanical contractor bid. If Caterpillar accepts the pricing from Fagen Inc., that amount will be part of Fagen's contract pricing through a change order, which will be reimbursed by Caterpillar. If Caterpillar does not accept the "Add Alternate Bid", they will be responsible for hiring their own contractor to do the work. Discussion was held about how the "Add Alternate Bid" could affect the project. GM Carter noted that once the bid is approved, the project can move forward. If Caterpillar approves the "Add Alternate Bid", there will be a change order created. If Caterpillar does not approve the "Add Alternate Bid", HUC does not have to do anything. GM Carter added if the bid is awarded, the contracts will be sent out and by mid next week HUC should receive the bonds and will ask the Commissioners for a Special Meeting to come back and approve the contract. After discussion, a motion by Commissioner Hanson, second by Commissioner Cheney to Award the Mechanical Installation Bid to Fagen Inc. for Units 6 & 7. Motion carried unanimously. GM Carter asked the Commission to Reject and Rebid all Electrical Installation Bids. HUC had an Advertisement for Bid to open sealed bids on September 26, 2018. When the information was sent to the contractors, the date of September 25, 2018 was given to them. Therefore, HDR had to issue addenda #2. However, the addenda was incorrectly labeled as #1. Now the contractors had two addenda's that are labeled #1. From a confusion and technical standpoint, HUC would like to reject and rebid all electrical installation bids. After discussion, a motion by Commissioner Martinez, second by Commissioner Cheney to Reject and Rebid all Electrical Installation Bids. Motion carried unanimously. GM Carter spoke on Re -Advertising forthe Electrical Installation Bids. The Advertisement for Bids would be in the paper for 10 days. This process will put the Electrical Installation behind by two weeks. Motion by Commissioner Hanson, second by Commissioner Wendorff to Approve Re - Advertising for Electrical Installation Bids. Motion carried unanimously. There being no further business, a motion by Commissioner Martinez, second by Commissioner Hanson to adjourn the meeting at 7:48p.m. Motion was unanimously carried. ATTEST: Monty Morrow, President Robert Wendorff, Secretary MINUTES Special Meeting — Hutchinson Utilities Commission Wednesday, October 10, 2018 Call to order — 7:30 a.m. President Morrow called the meeting to order. Members present: President Monty Morrow; Vice President Anthony Hanson; Secretary Robert Wendorff; Commissioner Matt Cheney; General Manger Jeremy Carter; Attorney Marc Sebora Absent: Commissioner Don Martinez Others present: Angie Radke The purpose of the special meeting is to Approve the Agreement/Contract to Fagen Inc. for the Mechanical Installation of Units 6 & 7. GM Carter thanked the Commission for getting together today and last week. GM Carter noted before the Commission is Fagen's full contract with the agreement. HUC has received the Certificate of Insurance along with the Performance and Payment Bonds and is asking the Commission to approve the Agreement/Contract to Fagen Inc for the Mechanical Installation of Units 6 & 7. The Commission asked Mr. Sebora if he felt comfortable with Contract. Mr. Sebora stated that he was. Motion by Commissioner Hanson, second by Commissioner Cheney to Approve the Agreement/Contract to Fagen Inc. for the Mechanical Installation of Units 6 & 7. Motion carried unanimously. Discussions were held about what the next steps will be. GM Carter stated that by the end of the month, Staff would look to have the Commission award the electrical installation bid and then the execution of the agreement/contract for the electrical installation bid shortly after. April 9, 2019 is still the due date to have mechanical and electrical installations complete so startup and commissioning can start. There will be daily monitoring on the project, as Staff will be there. There being no further business, a motion by Commissioner Wendorff, second by Commissioner Cheney to adjourn the meeting at 7:47a.m. Motion was unanimously carried. 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HwwHoH rt w x.11 o z z H H a Z 0 H H C7 H z H o H z a wn w a W a � q w z a a h w H w u O CW FA w O w a a � � � �3: a > o O O O O O O O M l.0 l.0 l.0 l.0 l.0 l.0 N N W W W W W W W W C7 C7 C7 C7 C7 C7 C7 C7 of of of of of of of of C) r1 r1 r1 r1 r1 r1 r1 r1 0 0 0 0 0 0 0 0 N N N N N N N N N N N N N N N l0 N O O O O O O O O w H H H H H H H H .W. HUTCHINSON UTILITIES COMMISSION COMBINED DIVISIONS FINANCIAL REPORT FOR SEPTEMBER, 2018 2018 2017 Di % Chnq 2018 2017 pi . Combined Division Customer Revenue $ 2,457,917 $ 2,523,355 $ (65,439) (2.6%) $ 27,138,210 $ 26,121,330 $ 1,016,880 Sales for Resale $ 233,698 $ 179,440 $ 54,258 30.2% $ 2,396,507 $ 1,631,291 $ 765,216 NU Transportation $ 86,024 $ 94,810 $ (8,786) (9.3%) $ 671,007 $ 667,277 $ 3,730 Electric Division Transfer $ 54,697 $ 54,308 $ 389 0.7% $ 492,274 $ 488,774 $ 3,500 Other Revenues $ 66,715 $ 38,238 $ 28,477 74.5% $ 470,079 $ 502,544 $ (32,465) Interest Income $ 36,882 $ 10,538 $ 26,344 250.0% $ 249,562 $ 105,670 $ 143,892 TOTAL REVENUES $ 2,935,933 $ 2,900,690 $ 35,243 1.2% $ 31,417,639 $ 29,516,886 $ 1,900,752 Chnq 75% of Year Full Yr Bud $ 35,763,605 Comp. % of Bud 75.9% 3.9% 46.9% $ 2,519,200 95.1% 0.6% $ 739440 90.7% 0.7% $ 656:366 75.0% (6.5%) $ 492,808 95.4% 136.2% $ 100,000 249.6% 6.4%1 $ 40,271,419 78.0% Salaries & Benefits $ 445,770 $ 451,743 $ (5,973) (1.32%) $ 4,369,185 $ 4,150,998 $ 218,187 5.3% $ 6,363,429 68.7% Purchased Commodities $ 1,256,965 $ 1,296,118 $ (39,153) (3.0%) $ 15,226,257 $ 14,783,961 $ 442,296 3.0% $ 19,600,000 77.7% Transmission $ 234,512 $ 243,293 $ (8,781) (3.6%) $ 1,927,785 $ 1,924,598 $ 3,187 0.2% $ 2,630,000 73.3% Generator Fuel/Chem. $ 76,138 $ 63,641 $ 12,498 19.6% $ 971,318 $ 769,502 $ 201,816 26.2% $ 992,082 97.9% Depreciation $ 325,667 $ 317,333 $ 8,333 2.6% $ 2,931,000 $ 2,856,000 $ 75,000 2.6% $ 3,908,000 75.0% Transfers (Elect./City) $ 158,986 $ 154,003 $ 4,984 3.2% $ 1,430,876 $ 1,386,023 $ 44,854 3.2% $ 1,907,835 75.0% Operating Expense $ 155,241 $ 158,853 $ (3,612) (2.3%) $ 1,417,549 $ 1,696,057 $ (278,508) (16.4%) $ 2,490,809 56.9% Debt Interest $ 103,551 $ 63,382 $ 40,169 63.4% $ 931,963 $ 570,441 $ 361,522 63.4% $ 1,280,863 72.8% TOTAL EXPENSES $ 2,756,831 $ 2,748,366 $ 8,465 0.3% $ 29,205,933 $ 28,137,580 $ 1,068,353 3.8% $ 39,173,018 74.6% NET PROFIT/(LOSS) $ 179,102 $ 152,324 $ 26,778 17.6%1 2,211,706 $ 1,379,306 $ 832,400 60.3% $ 1,098,401 201.4% September September YTD YTD 2018 HUC 2018 2017 Change 2018 2017 Change Budget Target Gross Margin % 36.9% 35.7% 1.2% 34.2% 32.3% 2.0% 32.2% IIIIIIIIIIII� Operating Income Per Revenue $ (%) 7.1% 6.0% 1.1% 8.5% 5.1% 3.4% 5.2% Net Income Per Revenue $ (%): 6.1% 5.3% 0.8% 7.0% 4.7% 2.4% 2.7% HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION FINANCIAL REPORT FOR SEPTEMBER, 2018 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIl l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l � Illlllllllllllllllllllllllllllllllllllllllllllllllllllllllll 75%of Year Comp. 2018 2017 2 . %Chna 2018 2017 2 . %Chna Full YrBud %of Bud Electric Division Customer Revenue $ 2,102,951 $ 2,128,896 $ (25,944) (1.2%) $ 19,552,906 $ 19,248,515 $ 304,390 1.6% $ 25,325,189 77.2% Sales for Resale $ 233,698 $ 179,440 $ 54,258 30.2% $ 2,396,507 $ 1,631,291 $ 765,216 46.9% $ 2,519,200 95.1% Other Revenues $ 39,406 $ 18,979 $ 20,427 107.6% $ 205,112 $ 289,155 $ (84,043) (29.1%) $ 208,800 98.2% Interest Income $ 19,835 $ 5,269 $ 14,566 276.4% $ 137,327 $ 52,835 $ 84,492 159.9% $ 50,000 274.7% TOTAL REVENUES $ 2,395,891 $ 2,332,584 $ 63,307 2.7% $ 22,291,852 $ 21,221,797 $ 1,070,055 5.0% $ 28,103,189 79.3% Salaries & Benefits $ 354,364 $ 357,542 $ (3,178) (0.9%) $ 3,441,842 $ 3,253,107 $ 188,734 5.8% $ 4,942,964 69.6% Purchased Power $ 1,082,093 $ 1,077,115 $ 4,978 0.5% $ 11,246,443 $ 10,821,387 $ 425,057 3.9% $ 14,000,000 80.3% Transmission $ 234,512 $ 243,293 $ (8,781) (3.6%) $ 1,927,785 $ 1,924,598 $ 3,187 0.2% $ 2,630,000 73.3% Generator Fuel/Chem. $ 76,138 $ 63,641 $ 12,498 19.6% $ 971,318 $ 769,502 $ 201,816 26.2% $ 992,082 97.9% Depreciation $ 241,667 $ 233,333 $ 8,333 3.6% $ 2,175,000 $ 2,100,000 $ 75,000 3.6% $ 2,900,000 75.0% Transfers (Elect./City) $ 128,224 $ 123,408 $ 4,816 3.9% $ 1,154,020 $ 1,110,674 $ 43,345 3.9% $ 1,538,693 75.0% Operating Expense $ 118,182 $ 106,083 $ 12,099 11.4% $ 949,954 $ 1,187,717 $ (237,764) (20.0%) $ 1,613,834 58.9% Debt Interest $ 47,376 $ 2,124 $ 45,252 2,130.6% $ 426,387 $ 19,116 $ 407,272 2,130.6% $ 606,763 70.3% TOTAL EXPENSES $ 2,282,557 $ 2,206,539 $ 76,017 3.4% $ 22,292,749 $ 21,186,102 $ 1,106,647 5.2% $ 29,224,336 76.3% 113,334 $ 126,045 $// (//12,7((((((10) (10.1%) $ (897) $ 35,695 $ ((366/,�5(9(((2) (102.5%) $ (1,121,147) 0.1% F }IR'(rK� llllllllllll 75% of Year Comp. ��NETPR�(�O��11��Fyy�I))I�T/(LOSS)$ (((((( � �R�*IN10#11 IW( lllllllllllllllll� ��11lll 2018 2017 2 . %Chna 2018 2017 2 . %Chna Full YrBud %of Bud Electric Division Residential 4,067,545 4,133,503 (65,958) (1.60%) 39,795,805 37,459,101 2,336,704 6.24% 50,432,797 78.9% All Electric 115,886 118,752 (2,866) (2.41%) 1,842,383 1,687,772 154,611 9.16% 2,611,705 70.5% Small General 1,477,252 1,436,670 40,582 2.82% 14,457,095 13,498,175 958,920 7.10% 17,085,853 84.6% Large General 6,787,950 6,748,480 39,470 0.58% 60,063,940 56,754,385 3,309,555 5.83% 79,262,499 75.8% Industrial 9,825,000 11,221,000 (1,396,000) (12.44%) 99,457,000 103,419,000 (3,962,000) (3.83%) 134,707,856 73.8% Total KWH Sold 22,273,633 23,658,405 (1,384,772) (5.85%) 215,616,223 212,818,433 2,797,790 1.31% 284,100,710 75.9% September September YTD YTD 2018 HUC 2018 2017 Change 2018 2017 Change Budget Target Gross Margin % 31.3% 30.4% 0.8% 26.4% 25.7% 0.8% 24.0% Operating Income Per Revenue $ (%) 5.0% 4.6% 0.4% 1.0% -0.8% 1.8% -2.0% ���IIIIIIIIIIIIIIII Net Income Per Revenue $ (%): 4.7% 5.4% -0.7% 0.0% 0.2% -0.2% -4.0% 0%-5% Customer Revenue per KWH: $0.0928 $0.0884 $0.0043 $0.0902 $0.0899 $0.0002 $0.0886 11llllllllllllllll� Total Power Supply Exp. per KWH: $0.0726 $0.0680 $0.0047 $0.0753 $0.0733 $0.0020 $0.0750 Overall net income decreased by $12,710 mostly due to the increased interest expense on new bonds. Sales for Resale of $233,698 consisted of $8,512 in market sales, $35,600 in the monthly tolling fee from Transalta, $73,586 in Transalta energy sales, and $116,000 in capacity sales to SMMPA. September 2017 Sales for Resale of $179,440 consisted of $11,379 in market sales, $34,400 in monthly tolling fees from Transalta, $37,661 in Transalta energy sales, and $96,000 in capacity sales to SMMPA. September 2016 Sales for Resale of $123,003 consisted of $11,105 in market sales, $34,400 in Transalta tolling fees, $10,998 in Transalta energy sales, and capacity sales to SMMPA for $66,500. Overall Purchased Power increased by $4,978. MRES purchases decreased by $8,293 and market purchases/MISO costs increased by $13,271. September power cost adjustment was $.00673/kwhr bringing in an additional $149,769 in revenue for the month and $1,308,217 YTD. Last year's power cost adjustment for September 2017 generated $80,220 in additional revenue for the month and $1,300,599 YTD. HUTCHINSON UTILITIES COMMISSION GAS DIVISION FINANCIAL REPORT FOR SEPTEMBER, 2018 l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l I IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII � l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l J 75% of Year Comp. 2018 2017 2 . %Chng 2018 2017 2 . %Chna Full YrBud %of Bud Gas Division Customer Revenue $ 354,965 $ 394,459 $ (39,494) (10.0%) $ 7,585,304 $ 6,872,815 $ 712,490 10.4% $ 10,438,416 72.7% Transportation $ 86,024 $ 94,810 $ (8,786) (9.3%) $ 671,007 $ 667,277 $ 3,730 0.6% $ 739,440 90.7% Electric Div. Transfer $ 54,697 $ 54,308 $ 389 0.7% $ 492,274 $ 488,774 $ 3,500 0.7% $ 656,366 75.0% Other Revenues $ 27,309 $ 19,259 $ 8,050 41.8% $ 264,967 $ 213,389 $ 51,578 24.2% $ 284,008 93.3% Interest Income $ 17,047 $ 5,269 $ 11,778 223.5% $ 112,235 $ 52,835 $ 59,400 112.4% $ 50,000 224.5% TOTAL REVENUES $ 540,042 $ 568,106 $ (28,064) (4.9%) $ 9,125,787 $ 8,295,090 $ 830,697 10.0% $ 12,168,230 75.0% Salaries & Benefits $ 91,406 $ 94,201 $ (2,795) (3.0%) $ 927,344 $ 897,891 $ 29,453 3.3% $ 1,420,465 65.3% Purchased Gas $ 174,872 $ 219,003 $ (44,131) (20.2%) $ 3,979,813 $ 3,962,574 $ 17,239 0.4% $ 5,600,000 71.1% Operating Expense $ 37,059 $ 52,770 $ (15,710) (29.8%) $ 467,595 $ 508,340 $ (40,745) (8.0%) $ 876,975 53.3% Depreciation $ 84,000 $ 84,000 $ - 0.0% $ 756,000 $ 756,000 $ - 0.0% $ 1,008,000 75.0% Transfers (City) $ 30,762 $ 30,594 $ 168 0.5% $ 276,856 $ 275,348 $ 1,508 0.5% $ 369,142 75.0% Debt Interest $ 56,175 $ 61,258 $ (5,083) 0.0% $ 505,575 $ 551,325 $ (45,750) JL12L $ 674,100 75.0% TOTAL EXPENSES $ 474,274 $ 541,827 $ (67,553) (12.5%) $ 6,913,184 $ 6,951,479 $ (38,294) (0.6%) $ 9,948,682 69.5% NET PROFIT/(LOSS) $ 65,768 $ 26,279 39,488 150.3% $ 2,212,603 $ $ 866688,9(((92 64.7% $ 2,219,548 99.7% ((( ���"rRih�*4�r�if�l'rN�Illllllllll lllhR1lll /$ p1,,,33443,611�(1� fOfiYih�rr�4illllllllllll lll 75% of Year Comp. 2018 2017 Di . %Chnq 2018 2017 Di . %Chnq Full YrBud %of Bud Gas Division Residential 8,602,704 7,047,826 1,554,878 22.06% 291,793,496 250,394,497 41,398,999 16.53% 449,582,000 64.9% Commercial 9,406,534 10,322,437 (915,903) (8.87%) 234,035,114 207,281,856 26,753,258 12.91% 420,183,000 55.7% Industrial 45,705,037 48,908,793 (3,203,756) (6.559/,) 619,762,386 604,750,191 15,012,195 2_48% 786,836,000 78.8% Total CF Sold 63,714,275 66,279,056 (2,564,781) (3.87%) 1,145,590,996 1,062,426,544 83,164,452 7.83% 1,656,601,000 69.2% September September YTD YTD 2018 HUC 2018 2017 Change 2018 2017 Change Budget Target Gross Margin % 63.3% 57.9% 5.4% 53.8% 49.5% 4.3% 51.4% IIIIIIIIIIIIIIIIIIIIIIII ���� Operating Income Per Revenue $ (%) 16.7% 11.6% 5.1% 27.2% 20.4% 6.8% 22.1% Net Income Per Revenue $ (%): 13.3% 4.8% 8.4% 25.3% 16.7% 8.6% �pyN�NNpNp�p�p�p�N� 18.8% ��MflIII�IIIIIIIIIIIIIIIIIyy Contracted Customer Rev. per CF: $0.0037 $0.0035 $0.0002 $0.0038 $0.0038 $0.0000 $0.0035pp�pp�pp��pp��pp�����ryry�I Customer Revenue per CF: $0.0103 $0.0129 -$0.0026 $0.0099 $0.0100 $0.0000 $0.0088IIIIIIIIII���II�'' Total Power Supply Exp. per CF: $0.0029 $0.0035 ($0.0006) $0.0036 $0.0038 ($0.0003) $0.0035 $0.0035 Natural Gas net income increased by $39,488 mainly due to lower purchased gas costs. The decrease in revenue can be attributed to an additional approximately $35,000 given back to customers that was calculated in error. That will be corrected in October. September's fuel cost credit adjustment was $3.48179/MCF totalling $77,067 for the month and $328,271 YTD. September 2017 credits totalled $32,080 for the month and $452,077 YTD. Current Assets UnrestrictedlUndesignated Cash Cash Petty Cash Designated Cash Capital Expenditures - Five Yr. CIP Payment in Lieu of Taxes Rate Stabilization - Electric Rate Stabilization - Gas Catastrophic Funds Restricted Cash Bond Interest Payment 2017 Bond Interest Payment 2012 Debt Service Reserve Funds Total Current Assets Receivables Accounts (net of uncollectible allowances) Interest Total Receivables Other Assets Inventory Prepaid Expenses Sales Tax Receivable Deferred Outflows - Electric Deferred Outflows - Gas Total Other Assets Total Current Assets Capital Assets Land & Land Rights Depreciable Capital Assets Accumulated Depreciation Construction - Work in Progress Total Net Capital Assets Total Assets HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED SEPTEMBER 30, 2018 Electric Gas Total Total Net Change Division Division 2018 2017 Total (YTD) 10,223,176.31 7,420,233.35 17,643,409.66 11,392,168.08 6,251,241.58 680.00 170.00 850.00 850.00 - 2,750,000.00 700,000.00 3,450,000.00 1,544,606.61 1,905,393.39 882,327.00 369,142.00 1,251,469.00 1,196,331.00 55,138.00 372,736.68 - 372,736.68 314,539.41 58,197.27 - 651,306.61 651,306.61 646,058.37 5,248.24 400,000.00 100,000.00 500,000.00 500,000.00 - 1,169,310.18 - 1,169,310.18 137,946.88 1,031,363.30 - 1,640,916.66 1,640,916.66 1,792,175.03 (151,258.37) 522,335.64 2,188,694.02 2,711,029.66 2,188,694.02 522,335.64 16,320,565.81 13,070,462.64 29,391,028.45 19,713,369.40 9,677,659.05 2,185,501.52 496,145.68 2,681,647.20 2,516,998.63 164,648.57 19,039.49 19,039.49 38,078.98 31,415.67 6,663.31 2,204,541.01 515,185.17 2,719,726.18 2,548,414.30 171,311.88 1,261,287.98 457,477.06 1,718,765.04 1,593,369.06 125,395.98 29,701.46 62,869.37 92,570.83 74,689.69 17,881.14 56,284.63 - 56,284.63 171,829.92 (115,545.29) 752,887.00 - 752,887.00 1,746,060.00 (993,173.00) - 250,962.00 250,962.00 582,020.00 (331,058.00) 2,100,161.07 771,308.43 2,871,469.50 4,167,968.67 (1,296,499.17) 20,625,267.89 14,356,956.24 34,982,224.13 26,429,752.37 8,552,471.76 690,368.40 3,899,918.60 4,590,287.00 4,591,691.75 (1,404.75) 89,600,141.91 41,294,704.69 130,894,846.60 128,039,624.85 2,855,221.75 (54,619,993.56) (15,762,585.00) (70,382,578.56) (67,187,826.70) (3,194,751.86) 11,538,586.70 312,965.61 11,851,552.31 1,512,087.75 10,339,464.56 47,209,103.45 29,745,003.90 76,954,107.35 66,955,577.65 9,998,529.70 67,834,371.34 44,101,960.14 111,936,331.48 93,385,330.02 18,551,001.46 HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED SEPTEMBER 30, 2018 Electric Gas Total Total Net Change Division Division 2018 2017 Total (YTD) Current Liabilities Current Portion of Long-term Debt Bonds Payable - 1,295,000.00 1,295,000.00 1,345,000.00 (50,000.00) Bond Premium - 185,608.32 185,608.32 185,608.32 - Accounts Payable 2,004,150.00 523,422.26 2,527,572.26 792,165.98 1,735,406.28 Accrued Expenses Accrued Interest 189,505.52 308,700.36 498,205.88 253,529.25 244,676.63 Accrued Payroll 86,870.63 24,511.84 111,382.47 98,787.28 12,595.19 Total Current Liabilities 2,280,526.15 2,337,242.78 4,617,768.93 2,675,090.83 1,942,678.10 Long -Term Liabilities Noncurrent Portion of Long-term Debt 2017 Bonds 16,675,000.00 - 16,675,000.00 - 16,675,000.00 2012 Bonds - 13,900,000.00 13,900,000.00 15,195,000.00 (1,295,000.00) 2003 Bonds - - - 465,000.00 (465,000.00) Bond Premium 2012 641,258.40 1,330,192.59 1,971,450.99 1,515,800.91 455,650.08 Pension Liability- Electric 3,083,440.00 - 3,083,440.00 4,226,202.00 (1,142,762.00) Pension Liability- Nat Gas - 1,027,813.00 1,027,813.00 1,408,734.00 (380,921.00) Accrued Vacation Payable 323,735.99 102,774.05 426,510.04 378,943.50 47,566.54 Accrued Severance 73,739.62 28,580.99 102,320.61 92,050.32 10,270.29 Deferred Outflows - Electric 794,370.00 - 794,370.00 569,910.00 224,460.00 Deferred Outflows - Nat Gas - 264,790.00 264,790.00 189,970.00 74,820.00 Total Long -Term Liabilities 21,591,544.01 16,654,150.63 38,245,694.64 24,041,610.73 14,204,083.91 Net Position Retained Earnings 43,962,301.18 25,110,566.73 69,072,867.91 66,668,628.46 2,404,239.45 Total Net Position 43,962,301.18 25,110,566.73 69,072,867.91 66,668,628.46 2,404,239.45 Total Liabilities and Net Position 67,834,371.34 44,101,960.14 111,936,331.48 93,385,330.02 18,551,001.46 Hutchinson Utilities Commission Cash -Designations Report, Combined 9/30/2018 Financial Institution Current Interest Rate Annual Interest Balance, September 2018 Balance, August 2018 Change in Cash/Reserve Position Savings, Checking, Investments varies Total Operating Funds varies varies 29,391,028.45 29,219,646.69 171,381.76 Debt Reserve Requirements Bond Covenants - sinking fund Debt Reserve Requirements Bond Covenants -1 year Max. P & I Total Restricted Funds 29,391,028.45 29,219,646.69 171,381.76 2,810,226.84 2,592,512.54 217,714.30 2,188,694.02 2,188,694.02 - 4,998,920.86 4,781,206.56 217,714.30 Operating Reserve Min 60 days of 2018 Operating Bud. 5,868,920.00 5,868,920.00 Rate Stabalization Funds 1,024,043.29 1,024,043.29 PILOT Funds Charter (Formula Only) 1,251,469.00 1,251,469.00 Catastrophic Funds Risk Mitigation Amount 500,000.00 500,000.00 Capital Reserves 5 Year CIP ( 2018-2022 Fleet & Infrastructure Maintenance) 3,450,000.00 3,450,000.00 Total Designated Funds 12,094,432.29 12,094,432.29 YE YE YE YE YTD HUC 2014 2015 2016 2017 2018 Target Debt to Asset 28.8% 32.0% 32.2% 40.8% 38.3% Current Ratio 2.26 2.52 3.06 5.73 6.16 RONA 0.05% 1.31% 2.17% 1.80% 2.19% Ftt� Change in Cash Balance (From 12131114 to 913012018) Month End Electric Elec. Change Natural Gas Gas Change Total Total Change 9/30/2018 16,320,566 13,070,463 29,391,028 12/31/2017 23,213,245 (6,892,679) 10,702,689 2,367,774 33,915,934 (4,524,906) 12/31/2016 8,612,801 14,600,444 9,500,074 1,202,615 18,112,875 15,803,059 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 * 2017's Signifcant increase in cash balance is due to issuing bonds for the generator project. Hutchinson Utilities Commission Cash -Designations Report, Electric 9/30/2018 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest September 2018 August 2018 Position Savings, Checking, Investments varies varies varies 29,391,028.45 29,219,646.69 171,381.76 Total HUC Operating Funds 29,391,028.45 29,219,646.69 171,381.76 Debt Restricted Requirements Bond Covenants - sinking fund Operating Reserve Min 60 days of 2018 Operating Bud. Rate Stabalization Funds $400K-$1.2K PILOT Funds Charter (Formula Only) Catastrophic Funds Risk Mitigation Amount Capital Reserves 5 Year CIP ( 2018-2022 Fleet & Infrastructure Maintenance) Total Designated Funds 1,169,310.18 1,115,687.55 53,622.63 4,387,223.00 4,387,223.00 372,736.68 372,736.68 882,327.00 882,327.00 400,000.00 400,000.00 2,750,000.00 2,750,000.00 8,792,286.68 8,792,286.68 Excess Reserves Less Restrictions & Designations, Electric 6,358fl968.95 6fl323fl369.68 35fl599.27 YE YE YE YE YTD APPA Ratio HUC 2014 2015 2016 2017 2018 5K-10K Cust. Target Debt to Asset Ratio (* w/Gen.) 7.4% 13.2% 16.1% 36.1% 35.2% 50.1% Current Ratio 2.48 2.95 3.57 10.70 7.97 2.43 �I�IIIIIIII��IIIIIIIIII RONA -3.1% -1.2% -0.4% -0.1% 0.0% NA >0% Hutchinson Utilities Commission Cash -Designations Report, Gas 9/30/2018 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest September 2018 August 2018 Position 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 Funds varies 29,391,028.45 29,219,646.69 171,381.76 29,391,028.45 29,219,646.69 171,381.76 1,640,916.66 1,476,824.99 164,091.67 2,188,694.02 2,188,694.02 - 3,829,610.68 3,665,519.01 164,091.67 Operating Reserve Min 60 days of 2018 Operating Bud. 1,481,697.00 1,481,697.00 Rate Stabalization Funds $200K-$600K 651,306.61 651,306.61 PILOT Funds Charter (Formula Only) 369,142.00 369,142.00 Catastrophic Funds Risk Mitigation Amount 100,000.00 100,000.00 Capital Reserves 5 Year CIP ( 2018-2022 Fleet & Infrastructure Maintenance) 700,000.00 700,000.00 Total Designated Funds 3,302,145.61 3,302,145.61 YE YE YE YE YTD HUC 2014 2015 2016 2017 2018 APGA Ratio Target Debt to Asset 55.6% 54.8% 51.5% 48.1% 43.1% TBD Current Ratio 2.07 2.17 2.59 2.72 4.40 TBD NN RONA 4.3% 4.7% 5.6% 5.0% 5.9% TBD 2 �2 �2 �2 �2 00000 O N N N N O O N N O EC . . . . . . . . . 7 7 U d N a o O O c 0- (D. 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T O M o N o CO V O (p � 7 R A c, r W N iO V N CNO CMO Cfl V CO I- O) ✓ � � I ~ C o N m Q U Y 0 F m N O E Q ~ o 0 d C - (D U a+ e C m O O D � C) (D E d o O C7 ELECTRIC DIVISION Operating Revenue September 2018 CLASS AMOUNT KWH /KWH Street Lights $0.44 8 $0.05500 Electric Residential Service $428,313.65 4,067,545 $0.10530 All Electric Residential Service $12,945.05 115,886 $0.11171 Electric Small General Service $152,478.73 1,477,252 $0.10322 Electric Large General Service $659,887.27 6,787,950 $0.09721 Electric Large Industrial Service $812,480.35 9,825,000 $0.08270 Total $2,066,105.49 22,273,641 $0.09276 Power Adjustment $0.00673 Rate Without Power Adjustment $0.08603 Electric Division Year -to -Date 02018$A--t 02017$A-nt ®2018 KWH110 02017KWH110 26,000,000 25,000,000 24,000,000 23,000,000 22,000,000 21,000,000 20,000,000 19,000,000 18,000,000 17,000,000 16,000,000 15,000,000 14,000,000 13,000,000 12,000,000 11,000,000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 IL Street Lights Residential All Elec. Small Gen. Large Gen. Large For Resale Total Resid. Srv. Srv. Industrial NOTE: Sales for resale includes capacity sales, market sales and Transalta sales. NATURAL GAS DIVISION Operating Revenue SEPTEMBER 2018 CLASS AMOUNT MCF /$ MCF Residential $90,309.38 8,603 $10.49743 Commercial $57,740.09 9,407 $6.13799 Large Industrial $206,915.64 45,705 $4.52720 Total $354,965.11 63,715 $5.57114 Fuel Adjustment-$0.00348 Rate Without Fuel Adjustment $9.05114 Natural Gas Division Year -to -Date ® 2018 $ Amount 132017 $ Amount ® 2018 MCF 132017 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 9T Gas Residential Gas Commercial Large Industrial Total Electric Production Work Order Descri t ion Materials 11708 Units 6 & 7 $ 14,369,702.00 $ 11801 Unit 8 Building Spancrete Joint Replacement 10,000.00 11802 Unit 1 Control Building Air Conditioning 15,000.00 11803 Plant 1 Cooling Tower Piping Replacement 350,000.00 11804 Soft Start Motor Controllers for Air Supply Fan 8,000.00 11805 Replace Stage 3-5 HPC Blades 150,000.00 11806 Unit 1 CEMS Data Logger 30,000.00 11807 Plant 1 Pipe Replacement Engineering 7,000.00 Total Total Percentage Labor Budgeted Actual Difference Com I eted - $ 14,369,702.00 $ 10,914,175.12 $ (3,455,526.88) 65% $ 10,000.00 - $ (10,000.00) $ 15,000.00 5,461.96 $ (9,538.04) 100% $ 350,000.00 - $ (350,000.00) 2,000.00 $ 10,000.00 10,565.96 $ 565.96 100% $ 150,000.00 - $ (150,000.00) $ 30,000.00 $ (30,000.00) $ 7,000.00 - $ (7,000.00) $ 14,939,702.00 $ 2,000.00 $ 14,941,702.00 $ 10,930,203.04 $ (4,011,498.96) Electric Distribution Work Total Total Percentage Order Description Materials, Labor Budgeted Actual Difference Comlleted 21801 Pole Repair or Replacement 15,000.00 - 15,000.00 - $ (15,000.00) 21802 Hutch Substation Roof Replacement 10,000.00 10,000.00 - $ (10,000.00) 21803 Station Equipment 10,000.00 10,000.00 19,415.38 $ 9,415.38 100% 21804 Duct for Reconductor 15,000.00 65,000.00 80,000.00 24,348.66 $ (55,651.34) 60% 21805 Uponer New Feed 85,000.00 50,000.00 135,000.00 33,603.81 $ (101,396.19) 70% 21806 Feeder 16 and 17 Reconductor 30,000.00 70,000.00 100,000.00 47,197.20 $ (52,802.80) 50% 21807 MITGI New Feed 80,000.00 35,000.00 115,000.00 60,058.60 $ (54,941.40) 75% 21808 New Developments 50,000.00 50,000.00 89,330.55 $ 39,330.55 75% 21809 Century Court Apartments 20,000.00 15,000.00 35,000.00 7,759.67 $ (27,240.33) 30% 21810 Century Avenue Trail Work Feeder 22 10,000.00 10,000.00 20,000.00 6,959.13 $ (13,040.87) 50% 21811 New Developments Transformers 50,000.00 50,000.00 15,208.96 $ (34,791.04) 50% 21812 Plant 14160 Generator Transformer Repl 70,000.00 5,000.00 75,000.00 $ (75,000.00) 21813 Transformer Replacements 40,000.00 14,000.00 54,000.00 6,354.30 $ (47,645.70) 25% 21814 Century Court Apartments 10,000.00 3,000.00 13,000.00 $ (13,000.00) 21815 Meters 30,000_.00 - 30,000.00 18,227.68 $ (11,772.32) 50% $mmm525,000.00 $ 267,000.00 $ 792,000.00 $ 328,463.94 $ (463,536.06) Administrative Total Work Order Description Budgeted 51801 Replace 2008 Super Duty Bucket Truck 140,000.00 51802 Replace 2007 Metering Van 25,750.00 51803 Replace 2006 Production Dodge Dakota 25,000.00 51804 Replace 2006 Ford F150 25,750.00 51805 Replace Vehicle #433 37,080.00 Total Percentage Actual Difference Com feted 140,000.00 23,887.64 1,862.36 100% 26,079.22 (1,079.22) 100% 26,079.22 (329.22) 100% 34,434.49 2,645.51 100% $ 253,580.00 $ 110,480.57 $ (143,099.43) Work Order Description 61801 Transmission Lateral to HCP - ROW Easements 61802 Transmission Lateral to HCP - Materials and Permits 61803 Lafayette Interconnect Metering Upgrade 61804 Locator 61805 Misc Developments and Improvements 61806 Regulator Station Improvements 61807 Service Lines 61808 Meters, AMI, and all Fittings 61809 Industrial Metering and Regulation Natural Gas Total Total Percentage Materials Labor Budgeted Actual Difference Completed $ 500,000.00 $ 4,200.00 $ 504,200.00 $ $ (504,200.00) 1,000,000.00 4,200.00 1,004,200.00 $ (1,004,200.00) 90,000.00 18,000.00 108,000.00 12,575.67 $ (95,424.33) 15% 6,000.00 - $ 6,000.00 7,674.16 $ 1,674.16 100% 125,000.00 28,000.00 $ 153,000.00 48,295.57 $ (104,704.43) 50% 15,000.00 4,900.00 $ 19,900.00 3.21 $ (19,896.79) 55,000.00 31,500.00 $ 86,500.00 57,195.53 $ (29,304.47) 60% 90,000.00 4,900.00 $ 94,900.00 81,877.42 $ (13,022.58) 80% 80,000.00 7,000.00 $ 87,000.00 105,344.05 $ 18,344.05 90% $ 1,961,000.00 $ 102,700.00 $ 2,063,700.00 $ 312,965.61 $ (1,750,734.39) HUTCHINSON UTILITIES COMMISSION 9T, Board Action Form iiiiiiiiiiiiiiiiiiiiiillillillillillillilliillillillillillillilliilliillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliilllI Agenda Item: Review Policies Presenter: Jeremy Carter Agenda Item Type: Time Requested (Minutes): 5 Review Policies Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA 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. Budget Payment Plan ii. Explanation of Billing Procedure iii. Disconnection of Residential Services by HUC iv. Disconnection of Commercial Services by HUC V. Vacation vi. Holidays vii. Life Insurance viii. Health/Dental Insurance ix. Disability Insurance X. Family & Medical Leave xi. Pregnancy & Parental Leave xii. Sick Leave xiii. Sick/Vacation Leave Donation BOARD ACTION REQUESTED: None Fiscal Impact: Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: RemainingCost: Budget Payment Plan A budget payment plan is available to residential customers who have been at their present location for a minimum of 12 continuous months. Procedures are in place for setting up and reviewing the budget payment plan calculation. Changes to the budget payment amount are made at the discretion of the Customer Service Department based on the customer's average bill from the previous 12 months. Customers will be notified, in writing, of any changes. A customer may concurrently participate in the budget payment plan by automatic bank payment plan or recurring credit cards. Explanation of Billing Procedure A bill for services is sent to the address provided by the customer approximately 3 to 5 days after the meters have been read. The customer has approximately 10 days to pay the bill in full by the stated due date. In accordance with state law, the City of Hutchinson and its related entities shall have 35 days to pay bills in full. Bills paid after the due date will incur the following charges: • A 1 % per month late payment charge on any unpaid balance. • A $15 processing fee. A late notice warning of pending disconnection is mailed to the customer and provides the customer with approximately 20 days to pay the bill or contact the Customer Service Department to make other arrangements. Examples of other arrangements may include establishing a budget payment plan or payments by other agencies on the customer's behalf. Failure to make payment by the stated due date and time will be considered a violation of the notice of pending disconnection. If full payment or other arrangements have not been made by the deadline, HUC personnel are sent to the meter location to disconnect utility services (see disconnection of services section). A notice will also be included on the next month's billing warning of pending disconnection. Customers should refer to previously sent disconnection letter for details of date and time of disconnection. IT IS THE CUSTOMER'S RESPONSIBILITY TO PAY BILLS ON TIME AND IN FULL. A dishonored payment will be assessed a $30 processing fee. A dishonored payment made to avoid disconnection, to get reconnected, or for a deposit for service will be assessed a $30 processing fee; plus: a. A $40 trip charge to deliver a door hanger, a notice advising the customer they have 24 hours to make the full notice payment. Acceptable forms of payment include cash, money order or credit card. b. A $40 trip charge to disconnect service if payment is not received in the form of cash, money order or credit card. C. A $40 trip charge to reconnect service with payment made in the form of cash, money order or credit card. IT IS THE CUSTOMER'S RESPONSIBILITY TO KEEP HUC FULLY ADVISED OF ANY CHANGE OF ADDRESS. Disconnection of Residential Services by HUC 1. Residential utility service shall be disconnected for any of the following reasons: • Failure to pay by the deadline on a delinquent account or failure to comply with the terms of the budget payment plan. • Failure to contact HUC to gain protection from disconnection under the Cold Weather Rule. • Failure to maintain the payment agreement established under the Cold Weather Rule. • Failure to comply with deposit requirement. • Failure to pay for merchandise or charges for non -utility service billed by HUC. • Payment of bill with a dishonored check. • Failure to provide authorized utility personnel access to utility equipment. • HUC shall disconnect residential utility service, without notice, where service has been reconnected without HUC's authorization. • HUC shall disconnect residential utility service, without notice, where it has reasonable evidence that utility service is being obtained by potentially unsafe devices or potentially unsafe methods that stop or interfere with the proper metering of the utility service. • HUC may disconnect residential utility service, without notice, where a dangerous condition exists for as long as the condition exists. • At the request of the property owner, as long as it's currently in owner's name. • At the request of the realtor/bank, as long as it's currently in their name. • If an account owner or property owner does not notify us, within three (3) business days following disconnection of service for non-payment, a final bill will be processed and the account will be closed. 2. HUC must have a Landlord Agreement on file acknowledging that landlord/owner will be responsible for all utility charges after the read-out date requested by a tenant. Failure of the landlord/owner to execute this form will lead to a shut off of services on the read-out date requested from tenant. 3. For all items mentioned in number 1 and 2 above, a disconnect/reconnect fee shall be applied. The disconnect/reconnect fee is as follows: • A $40 trip charge to disconnect. • A $40 trip charge to reconnect, payment shall be made with cash, money order or credit card during regular business hours. • After hours reconnection will follow the After Hours Reconnection Policy. 4. In the event that the customer pays after the deadline given on the disconnect letter, and the payment is processed before physical disconnection, a $40 Removal from Disconnect List Fee will be applied to their account. 5. If a realtor/bank requests to have service reconnected for one day in order to perform an inspection, a $40 trip charge to reconnect and a $40 disconnect charge will be applied. 6. In the event of unauthorized use of, or tampering with the equipment of HUC, a tampering charge of $100 will be assessed to the customer's account. The appropriate law enforcement agency will be notified. HUC reserves the right to charge the customer for the cost of repairs to the equipment of HUC. 7. A dishonored payment will be assessed a $30 processing fee. 8. A dishonored payment to avoid disconnection, orto get reconnected, will be assessed a $30 processing fee; plus: • A $40 trip charge to deliver a door hanger, giving customer 24 hours to make payment good with cash, money order or credit card. 9. HUC is not required to furnish residential service under conditions requiring operation in parallel with Backup generating equipment connected to the customer's system if such operation is hazardous or may interfere with its own operations or service to other customers or operation as a condition or rendering service under such circumstances. FAILURE TO RESPOND TO THE DISCONNECT NOTICE SET FORTH ON THE BILL OR FAILURE TO PAY FOR SERVICES RENDERED BY HUC MAY RESULT IN THE DISCONNECTION OF SERVICES TO THE PROPERTY WITHOUT ANY ADDITIONAL NOTICE TO THE CUSTOMER. IT IS THE CUSTOMER'S RESPONSIBILITY TO PAY FOR SERVICES RENDERED AND TO ADVISE HUC OF ANY CHANGE IN ADDRESS. NEITHER HUC NOR THE CITY OF HUTCHINSON, NOR ANY OF THE AGENTS, EMPLOYEES OR REPRESENTATIVES OF THE CITY OF HUTCHINSON OR HUC, WILL BE RESPONSIBLE FOR ANY DAMAGES OR CLAIMS INCURRED AS A RESULT OF THE DISCONNECTION OF SERVICES. Residential utility service may not be disconnected or refused for any of the following reasons: • Delinquency in payment for services by a previous occupant of the premises to be served. • Failure to pay for a different rate classification of utility service. • Failure to pay the account of another customer as guarantor thereof. • Failure to pay charges arising from any underbilling occurring more than 1 year prior to the current billing and due to any misapplication of rates or faulty metering. • If a customer is on the Budget Payment Plan and has a credit balance on account. Disconnection of Commercial Services by HUC 1. Commercial utility service shall be disconnected for any of the following reasons: • Failure to pay by the deadline on a delinquent account. • Failure to comply with deposit requirement. • Failure to pay for merchandise or charges for non -utility service billed by HUC. • Payment of bill with a dishonored check. • Failure to provide authorized HUC personnel access to utility equipment. • HUC shall disconnect commercial utility service, without notice, where service has been reconnected without HUC's authorization. • HUC shall disconnect commercial utility service, without notice, where it has reasonable evidence that utility service is being obtained by potentially unsafe devices or potentially unsafe methods that stop or interfere with the proper metering of the utility service. • HUC may disconnect commercial utility service, without notice, where a dangerous condition exists for as long as the condition exists. • At the request of the property owner, as long as it's currently in owner's name. • At the request of the realtor/bank, as long as it's currently in their name. 2. HUC must have a Landlord Agreement on file acknowledging that landlord/owner will be responsible for all utility charges after the read-out date requested by a tenant. Failure of the landlord/owner to execute this form will lead to a shut off of services on the read-out date requested from tenant. 3. For all items mentioned in number 1 and 2 above, a disconnect/reconnect fee shall be applied. The disconnect/reconnect fee is as follows: • A $40 trip charge to disconnect. • A $40 trip charge to reconnect, payment shall be made with cash, money order or credit card during regular business hours. • After hours reconnection will follow the After Hours Reconnection Policy. 4. In the event that the customer pays after the deadline given on the disconnect letter, and the payment is processed before physical disconnection, a $40 Removal from Disconnect List Fee will be applied to their account. 5. If a realtor/bank requests to have service reconnected for one day in order to perform an inspection, a $40 trip charge to reconnect and a $40 disconnect charge will be applied. 6. In the event of unauthorized use of, or tampering with the equipment of HUC, a tampering charge of $100 will be assessed to the customer's account. The appropriate law enforcement agency will be notified. HUC reserves the right to charge the customer for the cost of repairs to the equipment of HUC. 7. A dishonored payment will be assessed a $30 processing fee. 8. A dishonored payment made to avoid disconnection, or to get reconnected, will be assessed a $30 processing fee; plus: • A $40 trip charge to deliver a door hanger, giving customer 24 hours to make payment good with cash, money order or credit card. 9. HUC is not required to furnish commercial service under conditions requiring operation in parallel with Backup generating equipment connected to the customer's system if such operation is hazardous or may interfere with its own operations or service to other customers or operation as a condition or rendering service under such circumstances. FAILURE TO RESPOND TO THE DISCONNECT NOTICE SET FORTH ON THE BILL OR FAILURE TO PAY FOR SERVICES RENDERED BY HUC MAY RESULT IN THE DISCONNECTION OF SERVICES TO THE PROPERTY WITHOUT ANY ADDITIONAL NOTICE TO THE CUSTOMER. IT IS THE CUSTOMER'S RESPONSIBILITY TO PAY FOR SERVICES RENDERED AND TO ADVISE HUC OF ANY CHANGE IN ADDRESS. NEITHER HUC NOR THE CITY OF HUTCHINSON, NOR ANY OF THE AGENTS, EMPLOYEES OR REPRESENTATIVES OF THE CITY OF HUTCHINSON OR HUC, WILL BE RESPONSIBLE FOR ANY DAMAGES OR CLAIMS INCURRED AS A RESULT OF THE DISCONNECTION OF SERVICES. Commercial utility service may not be disconnected or refused for any of the following reasons: • Delinquency in payment for services by a previous occupant of the premises to be served. • Failure to pay for a different rate classification of utility service. • Failure to pay the account of another customer as guarantor thereof. • Failure to pay charges arising from any underbilling occurring more than 1 year prior to the current billing and due to any misapplication of rates or faulty metering. EXEMPT SECTION 5 — EMPLOYEE BENEFITS VACATION Exempt employees shall accrue paid vacation on the employment anniversary date according to the following schedule: Number of Years Employed Vacation 20 hours 1 40 hours 2-6 80 hours 7-10 120 hours 11 128 hours 12 136 hours 13 144 hours 14 152 hours 15 160 hours 16 168 hours 17 176 hours 18 184 hours 19 192 hours 20 and up 200 hours Vacation may be used after completion of the probationary period. Employees must receive prior approval of their vacation requests from their Director, Manager or Supervisor. A vacation request for more than one day must be submitted in person at least two workdays in advance. (For example, if an employee is scheduled to work Wednesday, Thursday, Monday and the employee wants to take Monday afternoon as vacation, the employee must submit a request in person by Wednesday afternoon.) An employee may carry over up to a maximum of one time their annual accrual of vacation into the next vacation year. Vacation year is defined as service anniversary to service anniversary. Each non -probationary full-time employee must use at least 40 hours of vacation leave each year. New employees who only receive 40 hours of vacation per year must use at least 20 hours of vacation leave each year. Employees who are on vacation and experience a disabling accident or illness may use sick leave instead of vacation upon providing their Director, Manager or Supervisor appropriate proof of the accident or illness. NON-EXEMPT SECTION 5 — EMPLOYEE BENEFITS VACATION See Union Contract. EXEMPT HOLIDAYS Employees are eligible for holiday pay effective immediately upon hire. HUC shall observe the following days as holidays: • New Year's Day • Martin Luther King Day • President's Day • Memorial Day • Fourth of July • Labor Day • Veteran's Day • Thanksgiving Day • Christmas Day If the holiday falls on a Sunday, the following Monday shall be the holiday. If the holiday falls on a Saturday, the preceding Friday shall be the holiday. If Christmas falls on a Tuesday, Wednesday, Thursday or Friday, then the preceding day shall be a Christmas Eve Day holiday. Additionally, there shall be two (2) floating holidays determined by mutual agreement between the employee and Director, Manager or Supervisor. If Christmas falls on a Saturday, Sunday, or Monday, there shall be no Christmas Eve Day holiday but there shall be three (3) floating holidays determined by mutual agreement between the employee and Director, Manager or Supervisor. Floating holidays must be used by the end of each calendar year. Employees shall be paid eight (8) hours straight time for each of the holidays. Temporary employees who work on a holiday shall be paid at the employee's regular base pay rate and shall not receive holiday pay for hours not worked. NON-EXEMPT HOLIDAYS Employees are eligible for holiday pay effective immediately upon hire. HUC shall observe the following days as holidays: • New Year's Day • Martin Luther King Day • President's Day • Memorial Day • Fourth of July • Labor Day • Veteran's Day • Thanksgiving Day • Christmas Day If the holiday falls on a Sunday, the following Monday shall be the holiday. If the holiday falls on a Saturday, the preceding Friday shall be the holiday. If Christmas falls on a Tuesday, Wednesday, Thursday or Friday, then the preceding day shall be a Christmas Eve Day holiday. Additionally, there shall be two (2) floating holidays determined by mutual agreement between the employee and Director or Manager. If Christmas falls on a Saturday, Sunday, or Monday, there shall be no Christmas Eve Day holiday but there shall be three (3) floating holidays determined by mutual agreement between the employee and Director or Manager. Floating holidays must be used by the end of each calendar year. Employees shall be paid eight (8) hours straight time for each of the holidays. However, those employees governed by the Memorandum of Agreement, must comply with section 13.2 of that Agreement. Temporary employees who work on a holiday shall be paid at the employee's regular base pay rate and shall not receive holiday pay for hours not worked. EXEMPT LIFE INSURANCE HUC provides group term life insurance with accidental death and dismemberment for all full- time employees. HUC also offers voluntary term life insurance for all full-time employees. Information on life insurance is available through human resources/payroll. NON-EXEMPT LIFE INSURANCE HUC provides group term life insurance with accidental death and dismemberment for all full- time employees. HUC also offers voluntary term life insurance for all full-time employees. Information on life insurance is available through human resources/payroll. EXEMPT HEALTH/DENTAL INSURANCE HUC provides an opportunity for employees to participate in a group health (HSA)/dental insurance program. Employees are eligible for coverage the first of the month following hire date. Contact human resources/payroll for information regarding benefits and participation levels. Contact the human resources/payroll for information about continuation of health/dental insurance coverage after leaving. For those employees who participate in the high deductible family plan, HUC will contribute $4,000 annually into the HSA and for those employees participating in the high deductible single plan, HUC will contribute $2,000 annually into the HSA. Contributions are made in bi-weekly installments. 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. 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, but are eligible to participate in the high deductible health plan. A veteran who receives medical benefits from the Veterans Administration (VA) or employees who are enrolled in TRICARE who participate in the high deductible family plan, but who is/are not eligible to qualify for an HSA, shall receive $4,000 annually in two equal installments in lieu of said monies being deposited in an HSA. 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/are not eligible to qualify for an HSA, shall receive $2,000 annually in two equal installments in lieu of said monies being deposited in an HSA. NON-EXEMPT HEALTH/DENTAL INSURANCE HUC provides an opportunity for employees to participate in a group (HSA)/dental insurance program. Employees are eligible for coverage the first of the month following hire date. Contact human resources/payroll for information regarding benefits and participation levels. Contact human resources/payroll for information about continuation of health/dental insurance coverage after leaving. See Union Contract. EXEMPT DISABILITY INSURANCE HUC pays the entire premium of a long-term disability insurance policy for all employees. Information on disability insurance is available through human resources/payroll. NON-EXEMPT DISABILITY INSURANCE HUC pays the entire premium of a long-term disability insurance policy for all employees. Information on disability insurance is available through human resources/payroll. EXEMPT FAMILY AND MEDICAL LEAVE (FMLA) Pursuant to the Family and Medical Leave Act, employees are allowed up to 12 weeks unpaid leave during a 12-month period for the following reasons: • Birth or care of the newborn child of the employee • Placement with the employee of a child for adoption or foster care • Serious health condition of the employee that makes the employee unable to perform the functions of the position of such employee • In order to care for an employee's dependent child, spouse, or parent suffering from a serious health condition • Any qualifying exigency arising out of the fact that the spouse, or a son, daughter or parent of the employee is on active duty, or has been notified of an impending call or order to active duty) in the Armed Forces in support of a contingency operation. Up to twenty-six (26) weeks of protected leave per twelve (12) month period shall be granted to all eligible employees for the following reasons: • An eligible employee who is the spouse, son, daughter, parent, or next of kin of a covered service member shall be entitled to a total of 26 workweeks of leave during a twelve (12) month period to care for the service member. The leave described in this paragraph shall only be available during a single twelve (12) month period. • A covered service member is defined as a member of the Armed Forces, including a member of the National Guard or Reserves, who is undergoing medical treatment, recuperation, or therapy, is otherwise in outpatient status, or is otherwise on the temporary disability retired list, for a serious injury or illness. The term "serious injury or illness", in the case of a member of the Armed Forces, including a member of the National Guard or Reserves, means an injury or illness incurred by the member in the line of duty on active duty in the Armed Forces that may render the member medically unfit to perform the duties of the member's office, grade, rank, or rating. Spouses employed by HUC, both in regular positions, are jointly entitled to a combined total of 12 work weeks of family leave for the birth and care of a newborn child, for placement of a child for adoption or foster care, and to care for a parent who has a serious health condition. Spouses are entitled to a combined total of 26 weeks during a single twelve (12) month period to care for an eligible service member. During the single twelve (12) month period, an eligible employee shall be entitled to a combined total of 26 work weeks of total leave allowed under the FMLA. To be eligible for FMLA, the employee must have worked at least one year for HUC and worked at least 1,040 hours during the previous 12 months. In order to receive FMLA, the employee must request the leave by providing human resources/payroll 30-day's notice prior to the requested starting date of the leave. If 30-day's notice is not possible, the employee must provide as much notice as possible. Human resources/payroll shall provide the employee a "Medical Certificate" which must be completed by the employee's physician and returned to human resources/payroll. Pursuant to the FMLA, HUC may request a second opinion from another medical provider at HUC's expense. If the second opinion is different from the employee's physician's opinion, HUC shall seek a third opinion at HUC's expense. The third opinion shall prevail. HUC may require that a request for leave related to active duty or call to active duty be supported by a certification issued by the health care provider of the service member being cared for by the employee. The 12 weeks of available FMLA extend over 12 months. To determine whether the employee has any FMLA remaining, human resources/payroll shall review the 12 months preceding the request for FMLA. An employee may use the 12 weeks of FMLA intermittently over the 12-month period if necessary and may take the leave in increments of one hour or more. HUC may require a medical certificate attesting to the employee's fitness for duty prior to return to work. The fitness for duty report must be based on the particular health condition(s) for which the leave was approved and must address whether the employee can perform the essential functions of his/her regular position. An employee on FMLA for serious illness of the employee, the employee's spouse, dependent child or parent shall be required to use vacation or sick leave concurrent with the FMLA. HUC shall continue to pay its contribution toward health and dental insurance while an employee is on FMLA. The employee shall be required to continue payment of the employee portion of the premiums during the leave. If the employee fails to pay their portion of the premiums, HUC may terminate their insurance coverage subject to COBRA requirements. At the end of FMLA, an employee shall be returned to his/her former position or an equivalent position. For more information on FMLA, see human resources/payroll. NON-EXEMPT FAMILY AND MEDICAL LEAVE (FMLA) Pursuant to the Family and Medical Leave Act, employees are allowed up to 12 weeks unpaid leave during a 12-month period for the following reasons: • Birth or care of the newborn child of the employee • Placement with the employee of a child for adoption or foster care • Serious health condition of the employee that makes the employee unable to perform the functions of the position of such employee • In order to care for an employee's dependent child, spouse, or parent suffering from a serious health condition • Any qualifying exigency arising out of the fact that the spouse, or a son, daughter or parent of the employee is on active duty, or has been notified of an impending call or order to active duty) in the Armed Forces in support of a contingency operation. Up to twenty-six (26) weeks of protected leave per twelve (12) month period shall be granted to all eligible employees for the following reasons: • An eligible employee who is the spouse, son, daughter, parent, or next of kin of a covered service member shall be entitled to a total of 26 workweeks of leave during a twelve (12) month period to care for the service member. The leave described in this paragraph shall only be available during a single twelve (12) month period. • A covered service member is defined as a member of the Armed Forces, including a member of the National Guard or Reserves, who is undergoing medical treatment, recuperation, or therapy, is otherwise in outpatient status, or is otherwise on the temporary disability retired list, for a serious injury or illness. The term "serious injury or illness", in the case of a member of the Armed Forces, including a member of the National Guard or Reserves, means an injury or illness incurred by the member in the line of duty on active duty in the Armed Forces that may render the member medically unfit to perform the duties of the member's office, grade, rank, or rating. Spouses employed by HUC, both in regular positions, are jointly entitled to a combined total of 12 work weeks of family leave for the birth and care of a newborn child, for placement of a child for adoption or foster care, and to care for a parent who has a serious health condition. Spouses are entitled to a combined total of 26 weeks during a single twelve (12) month period to care for an eligible service member. During the single twelve (12) month period, an eligible employee shall be entitled to a combined total of 26 work weeks of total leave allowed under the FMLA. To be eligible for FMLA, the employee must have worked at least one year for HUC and worked at least 1,040 hours during the previous 12 months. In order to receive FMLA, the employee must request the leave by providing human resources/payroll 30-day's notice prior to the requested starting date of the leave. If 30-day's notice is not possible, the employee must provide as much notice as possible. Human resources/payroll shall provide the employee a "Medical Certificate" which must be completed by the employee's physician and returned to human resources/payroll. Pursuant to the FMLA, HUC may request a second opinion from another medical provider at HUC's expense. If the second opinion is different from the employee's physician's opinion, HUC shall seek a third opinion at HUC's expense. The third opinion shall prevail. HUC may require that a request for leave related to active duty or call to active duty be supported by a certification issued by the health care provider of the service member being cared for by the employee. The 12 weeks of available FMLA extend over 12 months. To determine whether the employee has any FMLA remaining, human resources/payroll shall review the 12 months preceding the request for FMLA. An employee may use the 12 weeks of FMLA intermittently over the 12-month period if necessary and may take the leave in increments of one hour or more. HUC may require a medical certificate attesting to the employee's fitness for duty prior to return to work. The fitness for duty report must be based on the particular health condition(s) for which the leave was approved and must address whether the employee can perform the essential functions of his/her regular position. An employee on FMLA for serious illness of the employee, the employee's spouse, dependent child or parent shall be required to use vacation or sick leave concurrent with the FMLA. HUC shall continue to pay its contribution toward health and dental insurance while an employee is on FMLA. The employee shall be required to continue payment of the employee portion of the premiums during the leave. If the employee fails to pay their portion of the premiums, HUC may terminate their insurance coverage subject to COBRA requirements. At the end of FMLA, an employee shall be returned to his/her former position or an equivalent position. For more information on FMLA, see human resources/payroll. EXEMPT PREGNANCY AND PARENTING LEAVE Pursuant to the Minnesota Pregnancy and Parenting Act, employees who have worked for HUC for at least twelve (12) months and average at least twenty (20) hours per week are entitled to take an unpaid leave of absence. Female employees are eligible for prenatal care, or incapacity due to pregnancy, childbirth, or related health conditions as well as a biological or adoptive parent in conjunction with the birth or adoption of a child are eligible for up to twelve (12) weeks of unpaid leave and must begin within twelve (12) months of the birth or adoption of the child. In the case where the child must remain in the hospital longer than the mother, the leave must begin within twelve (12) months after the child leaves the hospital. Eligible employees must provide thirty (30) days written notice to human resources/payroll of their desire to take parental leave. Employees are required to use their paid leave banks, such as sick leave or vacation. If the employee is also eligible for FMLA, the pregnancy and parenting leave under this section and FMLA shall run concurrently. The employee is entitled to return to work in the same position and at the same rate of pay the employee was receiving prior to commencement of the leave. Group insurance coverage will remain available while the employee is on leave pursuant to the Pregnancy and Parenting Leave Act, but the employee will be responsible for the entire premium unless otherwise provided in this policy (i.e., where leave is also FMLA qualifying). For employees on an FMLA absence as well, the employer contributions toward insurance benefits will continue during the FMLA leave absence. REASONABLE UNPAID WORK TIME FOR NURSING MOTHERS Nursing mothers will be provided reasonable unpaid break time to express milk for nursing her child for one year after the child's birth. HUC will provide a room (other than a bathroom) as close as possible to the employee's work area, that is shielded from view and free from intrusion from coworkers and the public and includes access to an electrical outlet, where the nursing mother can express milk in private. REASONABLE ACCOMMODATIONS TO AN EMPLOYEE FOR HEALTH CONDITIONS RELATING TO PREGNANCY HUC will attempt to provide a female employee who requests reasonable accommodation with the following for her health conditions related to her pregnancy or childbirth. • More frequent restroom, food and water breaks; • Seating; • Limits on lifting over 20 pounds and/or Temporary transfer to a less strenuous or hazardous position, should one be available. Unless such accommodations impose an undue hardship, HUC will engage in an interactive process with respect to an employee's request for a reasonable accommodation. NON-EXEMPT PREGNANCY AND PARENTING LEAVE Pursuant to the Minnesota Pregnancy and Parenting Act, employees who have worked for HUC for at least twelve (12) months and average at least twenty (20) hours per week are entitled to take an unpaid leave of absence. Female employees are eligible for prenatal care, or incapacity due to pregnancy, childbirth, or related health conditions as well as a biological or adoptive parent in conjunction with the birth or adoption of a child are eligible for up to twelve (12) weeks of unpaid leave and must begin within twelve (12) months of the birth or adoption of the child. In the case where the child must remain in the hospital longer than the mother, the leave must begin within twelve (12) months after the child leaves the hospital. Eligible employees must provide thirty (30) days written notice to human resources/payroll of their desire to take parental leave. Employees are required to use their paid leave banks, such as sick leave or vacation. If the employee is also eligible for FMLA, the pregnancy and parenting leave under this section and FMLA shall run concurrently. The employee is entitled to return to work in the same position and at the same rate of pay the employee was receiving prior to commencement of the leave. Group insurance coverage will remain available while the employee is on leave pursuant to the Pregnancy and Parenting Leave Act, but the employee will be responsible for the entire premium unless otherwise provided in this policy (i.e., where leave is also FMLA qualifying). For employees on an FMLA absence as well, the employer contributions toward insurance benefits will continue during the FMLA leave absence. REASONABLE UNPAID WORK TIME FOR NURSING MOTHERS Nursing mothers will be provided reasonable unpaid break time to express milk for nursing her child for one year after the child's birth. HUC will provide a room (other than a bathroom) as close as possible to the employee's work area, that is shielded from view and free from intrusion from coworkers and the public and includes access to an electrical outlet, where the nursing mother can express milk in private. REASONABLE ACCOMMODATIONS TO AN EMPLOYEE FOR HEALTH CONDITIONS RELATING TO PREGNANCY HUC will attempt to provide a female employee who requests reasonable accommodation with the following for her health conditions related to her pregnancy or childbirth. • More frequent restroom, food and water breaks; • Seating; • Limits on lifting over 20 pounds and/or Temporary transfer to a less strenuous or hazardous position, should one be available. Unless such accommodations impose an undue hardship, HUC will engage in an interactive process with respect to an employee's request for a reasonable accommodation. EXEMPT SICK LEAVE 1. Sick leave shall be granted to all probationary and non -probationary employees at a rate of eight (8) hours per month. 2. Sick leave may be granted for absence from duty due to personal illness, or for the illness of an immediate family (See Definitions) member on the same terms the employee is able to use sick leave benefits for their own illness, including appointments for necessary medical, dental or eye care, legal quarantine, or brief emergency situation (not to exceed one day) in the immediate family (See Definitions). 3. Sick leave cannot be accumulated beyond 720 hours. After the accumulation of 720 hours, a payback of one-third of the amount over 720 hours shall be made annually on or about February 1. 4. Upon retirement or death before retirement, a payback of one-third of the amount over 240 hours shall be made. 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 percentage as above. 5. Requests for sick leave consideration in case of other emergency situations may be brought to the Director, Manager or Supervisor. 6. A maximum of five days funeral leave may be allowed when necessary in the case of death in the immediate family (See Definitions). 7. If an employee becomes ill and must stay home from work, he/she shall notify their Director, Manager or Supervisor before their work day begins. 8. If an employee becomes ill during his/her regular work day, they shall notify their Director, Manager or Supervisor that it is necessary to leave due to illness. 9. Employees may be required to submit a medical certificate for any sick leave, at the discretion of the Director, Manager or Supervisor. 10. The use or claim of sick leave for a purpose not authorized may be cause for disciplinary action. 11. For the purpose of accumulating additional vacation or sick leave, an employee using earned vacation or sick leave is considered to be in a paid or working status. 12. Employees that are injured while engaged in after hours' employment of others or while self employed, shall not be covered under HUC's Sick Leave Policy, or Worker's Compensation benefits. 13. An employee who is determined to be eligible for workers compensation benefits during absence from duty shall receive such benefits pursuant to "Worker's Compensation" in the Employee Handbook. 14. HUC shall comply with the Family and Medical Leave Act, the Minnesota Parental Leave Act and the Americans with Disabilities Act. 15. Safety leave. Employees are authorized to use sick leave for reasonable absences for themselves or immediate family (See Definitions) who are providing or receiving assistance because they, or a relative, is a victim of sexual assault, domestic abuse, or stalking. Safety leave for those listed, other than the employee and the employee's child, is limited to 160 hours in any calendar year. After accrued sick leave has been exhausted, vacation leave may be used upon approval of the General Manager, to the extent the employee is entitled to such leave. NON-EXEMPT SICK LEAVE 1. Sick leave shall be granted to all probationary and non -probationary employees at a rate of eight (8) hours per month. 2. Sick leave may be granted for absence from duty due to personal illness, or for the illness of an immediate family (See Definitions) member on the same terms the employee is able to use sick leave benefits for their own illness, including appointments for necessary medical, dental or eye care, legal quarantine, or brief emergency situation (not to exceed one day) in the immediate family (See Definitions). 3. Sick leave cannot be accumulated beyond 720 hours. After the accumulation of 720 hours, a payback of one-third of the amount over 720 hours shall be made annually on or about February 1. 4. Upon retirement or death before retirement, a payback of one-third of the amount over 240 hours shall be made. 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 percentage as above. 5. Requests for sick leave consideration in case of other emergency situations may be brought to the Director, Manager or Supervisor. 6. A maximum of five days funeral leave may be allowed when necessary in the case of death in the immediate family (See Definitions). 7. If an employee becomes ill and must stay home from work, he/she shall notify their Director, Manager or Supervisor before their work day begins. 8. If an employee becomes ill during his/her regular work day, they shall notify their Director, Manager or Supervisor that it is necessary to leave due to illness. 9. Employees may be required to submit a medical certificate for any sick leave, at the discretion of the Director, Manager or Supervisor. 10. The use or claim of sick leave for a purpose not authorized may be cause for disciplinary action. 11. For the purpose of accumulating additional vacation or sick leave, an employee using earned vacation or sick leave is considered to be in a paid or working status. 12. Employees that are injured while engaged in after hours' employment of others or while self employed, shall not be covered under HUC's Sick Leave Policy, or Worker's Compensation benefits. 13. An employee who is determined to be eligible for workers compensation benefits during absence from duty shall receive such benefits pursuant to "Worker's Compensation" in the Employee Handbook. 14. HUC shall comply with the Family and Medical Leave Act, the Minnesota Parental Leave Act and the Americans with Disabilities Act. 15. Safety leave. Employees are authorized to use sick leave for reasonable absences for themselves or immediate family (See Definitions) who are providing or receiving assistance because they, or a relative, is a victim of sexual assault, domestic abuse, or stalking. Safety leave for those listed, other than the employee and the employee's child, is limited to 160 hours in any calendar year. After accrued sick leave has been exhausted, vacation leave may be used upon approval of the General Manager, to the extent the employee is entitled to such leave. EXEMPT SICKNACATION LEAVE DONATION The HUC recognizes that a catastrophic illness and/or serious health condition of an employee or immediate family member (spouse or dependent child) may deplete an employee's available paid leave (sick/vacation/compensatory time). This policy is meant to provide employees with the option of assisting fellow employees at such a time. HUC employees having accrued sick or vacation leave shall be allowed to donate a portion of such accrued leave to fellow employees experiencing a catastrophic illness and/or serious health condition suffered by the employee, the employee's spouse, or the employee's dependent child(ren). A catastrophic illness and/or serious health condition includes but is not limited to, heart attack, stroke, organ transplant, or other life threatening illness or debilitating condition as defined by a physician's diagnosis. The donation of leave from one employee to another shall be subject to the following terms and conditions. 1. An employee is only eligible to receive donated leave for time lost from normal work hours due to a life threatening disease or condition as defined above. 2. An employee shall be eligible to receive donated leave only after the employee's accrued sick, vacation, and compensatory time have been exhausted. 3. All requests to receive donated leave must be in writing to human resources/payroll and must be accompanied by supporting medical data. No full time employee shall be allowed to receive more than a total of twenty (20) work days or 160 hours of donated leave per single major life threatening disease or condition unless requested and approved by the General Manager. There is no limit on catastrophic events per year. 4. An employee may only use donated leave up to the time of eligibility for a long-term disability benefit (if applicable), or for the maximum number of days allowed to be donated, whichever occurs first. 5. A full time employee may donate no more than sixteen (16) hours of leave per calendar year to a single fellow employee. This shall not be construed to prohibit donating sixteen (16) hours per year to additional employees. Leave donation shall be calculated using time and not an equivalent cash amount. 6. An employee who is donating paid leave must do so from the employee's accrued sick and/or vacation leave balance. A written request to donate leave must be made to human resources/payroll on forms designated by HUC for that purpose. All donations made shall be kept confidential. 7. The General Manager shall have the right to deny use of donated leave or limit its use if it is determined to be in the best interests of HUC. Donated leave shall be subtracted from the donor's accumulated balance and added to the requested employee as part of the payroll function. Donated time shall be processed and used by the date of submission until the eligible amount of donated leave is reached. Contributions of leave hours exceeding the eligible amount shall be returned to the donating employee, and shall not be transferred. Donated hours shall be used in the order they are received. NON-EXEMPT SICKNACATION LEAVE DONATION The HUC recognizes that a catastrophic illness and/or serious health condition of an employee or immediate family member (spouse or dependent child) may deplete an employee's available paid leave (sick/vacation/compensatory time). This policy is meant to provide employees with the option of assisting fellow employees at such a time. HUC employees having accrued sick or vacation leave shall be allowed to donate a portion of such accrued leave to fellow employees experiencing a catastrophic illness and/or serious health condition suffered by the employee, the employee's spouse, or the employee's dependent child(ren). A catastrophic illness and/or serious health condition includes but is not limited to, heart attack, stroke, organ transplant, or other life threatening illness or debilitating condition as defined by a physician's diagnosis. The donation of leave from one employee to another shall be subject to the following terms and conditions. 1. An employee is only eligible to receive donated leave for time lost from normal work hours due to a life threatening disease or condition as defined above. 2. An employee shall be eligible to receive donated leave only after the employee's accrued sick, vacation, and compensatory time have been exhausted. 3. All requests to receive donated leave must be in writing to human resources/payroll and must be accompanied by supporting medical data. No full time employee shall be allowed to receive more than a total of twenty (20) work days or 160 hours of donated leave per single major life threatening disease or condition unless requested and approved by the General Manager. There is no limit on catastrophic events per year. 4. An employee may only use donated leave up to the time of eligibility for a long-term disability benefit (if applicable), or for the maximum number of days allowed to be donated, whichever occurs first. 5. A full time employee may donate no more than sixteen (16) hours of leave per calendar year to a single fellow employee. This shall not be construed to prohibit donating sixteen (16) hours per year to additional employees. Leave donation shall be calculated using time and not an equivalent cash amount. 6. An employee who is donating paid leave must do so from the employee's accrued sick and/or vacation leave balance. A written request to donate leave must be made to human resources/payroll on forms designated by HUC for that purpose. All donations made shall be kept confidential. 7. The General Manager shall have the right to deny use of donated leave or limit its use if it is determined to be in the best interests of HUC. Donated leave shall be subtracted from the donor's accumulated balance and added to the requested employee as part of the payroll function. Donated time shall be processed and used by the date of submission until the eligible amount of donated leave is reached. Contributions of leave hours exceeding the eligible amount shall be returned to the donating employee, and shall not be transferred. Donated hours shall be used in the order they are received. HUTCHINSON UTILITIES COMMISSION�� Board Action Form 'Ylkll'M1'k Agenda Item: Approve Re .7746 for a 2019 Ford F550 Chassis pp Req .7746 Dave Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As part of our Fleet Management program HUC will be replacing a 2008 40' Bucket Truck. The Truck Chassis was ordered with purchase order 7482 on the State Bid in March of 2018. We were notified that the 2018's are no longer available and now need to purchase the 2019. The State Bid price for the 2019 is $53,410.27, an increase of $402.42. We have $140,000.00 budgeted in 2018 for both the Ariel Lift and the Cab/Chassis. The State Contract bid price for the Ariel lift with fiberglass body is $90,407.00 plus tax and was ordered with PO 7487 on March 7 2018. The new State Contract bid price for the Cab/Chassis is $53410.27 Includes taxes and fees. The total cost will be $ 143,817.27. We are looking to cancel PO 7482 for the 2018 F550 and Approve Req 7746 for the 2019 F550. I have attached the previous PO 7482 and the new Req. 7746 BOARD ACTION REQUESTED: Cancel PO 7482 for 2018 Ford Chassis and Approve Req.7746 for 2019 Ford F550 chassis. Fiscal Impact: 53,410.27 Included in current budget: Yes Budget Change: Yes PROJECT SECTION: Total Project Cost: Remaining Cost: %rom z HUTCHINSON UT'IIILIIT'IIIE'S MIDWAY FORD COMMERCIAL 2777 N SNELLING AVE ROSEVILLE, MN 55113 Note Description: 2019 F550 Chassis PURCHASE REQUISITION HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 Date Requisition No. 10/08/2018 007746 Required by: 10/31/2018 Requested by: dhunstad Item No. Part No. Description Qty Unit Due Date Unit Price Ext. Amount FORD F550 CHASSIS - MFG. PART: 1 1.00 EA $50,159.750 $50,159.75 Total: 50,159.75 Tax 3250.52 Total 53410.27 Date Printed: 10/08/2018 Requisitioned By: dhunstad Page: 1/1 Midway Ford Commercial Fleet and Government Sales 2777 N. Snelling Ave. Roseville MN 55113 C-119 Contract # 135919 2019 F-550 4x4 Super Cab- 84" CA DRW XL X5H Automatic Transmission Dual Front Air Bags AM/FM Radio Tilt Wheel 40/20/40 Vinyl Front Seat 4-Wheel ABS Brakes Air Conditioning 225/7009.5 All Season Tires Travis Swanson 651-343-5212 tswanson(c_rosevillemidwayfordecom Front Tow Hooks Rubber Floor Covering Black Bumper 6.8L V10 Options Code Price Select 6.7L Diesel 99T $8,289 x Limited Slip 4.88 Axle X8L $332 x 19,500 GVWR 68M $1,063 x Brake Controller 52B $249 x Exterior Colors Code Select Power Equipment Group 90L $841 x Blue Jeans Metallic N1 Cloth 40/20/40 Seat is $92 x Race Red PQ Back-up Alarm 76C $128 x Caribou Metallic LQ Running Boards 18B $409 x Shadow Black G1 Traction Tires TGB $197 x Magnetic Metallic J7 7500 Front End 67P $263 x Ingot Silver Metallic UX PTO 62R $257 x Oxford White Z1 x Upfitter Interface 18A $272 x Rear View Camera Prep 872 $381 x Remote Start 76S $231 x Extended Service Contracts Cost Select Cruise Control 525 $216 x WeatherTech Mats(Front) $110 x Front Seat Covers $399 x OCR 98R $231 x Option Total $13,960 You must have a active FIN code to participate in this purchase contract : FIN code # Purchase Order required prior to order placement PO # Base Price Totals Options Price Totals Extended Warranty Transit Impr Excise Tax Tax Exempt Lic 6.5% Sales Tax Document fee Sub total per vehicle Number of Vehicles $36,048.00 $13,960.00 $51.75 $3,250.52 $100.00 $53,410.27 1 Name of Organization Address Grand Total for all units $53,410.27 City, State, Zip Acceptance Signature Contact Person/ Phone # Print Name and Title Date Contact's e-mail address and fax # 't"M71te• HUTCHINSON PURCHASE REQUISITION UTILITIES HUTCHINSON UTILITIES COMMISSION � 225 MICHIGAN ST SE {ow o'� r1'r 1 t F HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 MIDWAY FORD COMMERCIAL 2777 N SNELLING AVE ROSEVILLE, MN 55113 Note: Description: 2018 Ford F-550 84" CA DRW XL X5H Date Requisition No. 02/15/2018 007482 Required by: Requested by: dhunstad Item No. part No. Description Qty Unit Due Date Unit Price Ext. Amount 2018 FORD F-550 DRW XL X5H - 1 MFG. PART: 1.00 EA $49,779.750 $49,779.75 Total ,. ,779.75 Date Printed: 02/20/2018 Requisitioned By: dhunstad Page: 1/1' Midway Ford Commercial Fleet and Government Sales 2777 N. Snelling Ave. Roseville MN 55113 c-119 contract # 135919 2018 F-560 4x4 Super Cab- 84" CA DRW XL X5H Automatic Transmission Dual Front Air Bags AM/FM Radio Tilt Wheel 40/20/40 Vinyl Front Seat 4-Wheel ABS Brakes Air Conditioning 225/70r19.5 All Season Tires Travis Swanson 651-343-5212 Front Tow Hooks Rubber Floor Covering Black Bumper 6.8L V10 Options Code Price Select 6.7L Diesel 99T $8,175 x Limited Slip 4.88 Axle X8L $332 x 19,500 GVWR 68M $1,063 x Exterior Colors Code Select Brake Controller 52B $249 x Blue Jeans Metallic N1 Power Equipment Group 90L $841 x Race Red PQ Cloth 40/20/40 Seat 1S $92 x Caribou Metallic LQ Back-up Alarm 76C $128 x Shadow Black G1 Running Boards 18B $409 x Magnetic Metallic J7 Traction Tires TGB $197 x Ingot Silver Metallic UX 7500 Front End 67P $263 x Oxford White Z1 x PTO 62R $257 x Upfitter Interface 18A $272 x Rear View Camera Prep 872 $381 x Extended Service Contracts Cost Select Remote Start 76S $231 x Cruise Control 525 $216 x WeatherTech Mats(Front) $110 x Front Seat Covers $399 x Option Total $13,615 You must have a active FIN code to participate in this purchase contract: FIN code # 1 Purchase Order required prior to order placement PO # Base Price Totals Options Price Totals Extended Warranty Transit Impr Excise Tax Tax Exempt Lic 6.5% Sales Tax Document fee Sub total per vehicle Number of Vehicles $36,048.00 $13,615.00 $41.75 $3,228.10 $75.00 $53,007.85 1 Name of Organization Address Grand Total for all units $53,007.85 City, State, Zip Acceptance Signature Contact Person/ Phone # Print Name and Title Date Contact's e-mail address and fax # HUTCHINSON UTILITIES COMMISSION���� Board Action Form �'Ylkll'M1'k� Agenda Item: Approval of Natural Gas Firm Capacity Reservation Agreement Presenter: John Webster Agenda Item Type: Time Requested (Minutes): 1 New Business Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Heartland Corn Products (HCP) wishes to reserve firm natural gas capacity on the Hutchinson pipeline in the amount of 15,000 Dth/Day for 365 days per year commencing on November 1, 2018 through November 1, 2024. On, or before, November 1, 2024 HCP shall have the right to elect to convert the reserved capacity to firm transportation capacity to transport on the Hutchinson pipeline up to 15,000 Dth/day. This agreement provides HCP with the ROFR should Hutchinson Utilities receive an offer from a third party for firm transportation capacity that would impact Hutchinson Utilities' ability to guarantee to HCP the reserved capacity under this agreement. BOARD ACTION REQUESTED: Approval of Natural Gas Firm Capacity Reservation Agreement Fiscal Impact: $125,004 Annual Revenue Included in current budget: No Budget Change: No PROJECT SECTION: Total Project Cost: Remaining Cost: Natural Gas Firm Capacity Reservation Hutchinson Utilities Commission Heartland Corn Products John Webster 10/24/2018 142264174.2 NATURAL GAS FIRM CAPACITY RESERVATION AGREEMENT THIS NATURAL GAS FIRM CAPACITY RESERVATION AGREEMENT ("Agreement") is made and entered into on this day of October, 2018, to be effective as of the 1 st day of November, 2018 ("Effective Date"), by and between Heartland Corn Products ("HCP") with offices located at 53331 State Highway 19, Post Office Box A, Winthrop, Minnesota, 55396 and Hutchinson Utilities Commission ("Hutchinson") a Minnesota municipal utility located at 225 Michigan St. SE, Hutchinson, Minnesota, 55350. HCP and Hutchinson shall hereinafter sometimes be referred to separately as "Party" or jointly as "Parties." WITNESSETH: WHEREAS, Hutchinson owns and operates an approximately 89-mile intrastate natural-gas pipeline that interconnects with Northern Border Pipeline Company's interstate pipeline near Trimont, Minnesota and extends to Hutchinson, Minnesota ("Hutchinson Pipeline"); WHEREAS, HCP owns and operates an ethanol facility near Winthrop, Minnesota, which receives natural gas transported on the Hutchinson Pipeline through a third party; WHEREAS, HCP desires to reserve long-term firm capacity on the Hutchinson Pipeline until such time as Hutchinson and HCP enter into a Firm Transportation Capacity Agreement; WHEREAS, Hutchinson has the capability to provide HCP with reserved long term firm capacity and to transport natural gas on behalf of HCP in the future upon HCP's election pursuant to a Firm Transportation Capacity Agreement at a location agreeable to Hutchinson and HCP ; NOW THEREFORE, in consideration of the premises and mutual covenants and conditions contained in this Agreement, Hutchinson and HCP agree as follows: 1. Character Of Service. a. Firm Natural Gas Ca Tacit � Reservation -- Hutchinson shall provide to HCP reserved fret natural gas capacity on the Hutchinson Pipeline in the amount of 15,000 Dth per day for 365 days per year ("Reserved Ca acil: "), 2 1422641742 commencing on the Effective Date and continuing through the Term of this Agreement. The Parties acknowledge and agree that this Agreement does not provide HCP the right to transport volumes on the Hutchinson Pipeline. Instead, this Agreement RESERVES the Reserved Capacity for HCP's future use. b. Firm �Trans l)ortation Cag achy.. A re�r�eement -- On or before November 1, 2024, HCP shall have the right to elect to convert the Reserved Capacity to firm transportation capacity to transport on the Hutchinson Pipeline up to 15,000 Dth per day by providing Hutchinson with three (3) months prior written notice of its election ("Election Notice"). Upon receipt of RCP's Election Notice, HCP and Hutchinson agree to negotiate in good faith the terms and conditions of a Firm Transportation Capacity Agreement based on the following principles: 1. Transl)ortation CgpAcity: Maximum Daily Quantity (MDQ) of up to 15,000 Dth/day on a firm basis. 2. Contract Term: HCP and HUC will mutually agree to a term of no less than twenty (20) years in duration. 3. Rates: Pricing shall consist of a monthly reservation charge and a transportation charge per Dth based on published rates in Hutchinson's Rate Schedules in effect for all pipeline only transportation customers of Hutchinson if Hutchinson produces such a schedule and in the event no such schedule is published based on Hutchinson's current market based rate for customers of similar capacity needs of HCP in effect at the time HCP provides the Election Notice, but at no worse rate in effect for any pipeline -only customer on the Hutchinson pipeline. 2. Term The term of this Agreement will commence on the Effective Date and will remain in effect until the earlier of (i) the effective date of a Firm Transportation Capacity Agreement between the Parties, (ii) termination of this Agreement pursuant to Section 6, or (iii) November 1, 2024 at 9:00 AM CCT ("Term"). 142264174.2 3. Rates. Rates For Service -- The following charges shall apply to the Reserved Capacity to be provided to HCP by Hutchinson: Reservation Charge. Reservation Charge - $10,417 per Month, based on Reserved Capacity of 15,000 Dth/day. 4. Billing And Payment. a. Billing -- Hutchinson shall provide an invoice to HCP or its agent by the fifteenth day of the month preceding the month in which service is rendered by Hutchinson showing the amounts owing for Reserved Capacity. b. Payment -- Payment is due from HCP on or before the fifteenth day following the date the invoice is issued by Hutchinson. If the amount due is not paid on or before the due date, a late payment charge of one and one-half percent per month, or the legally authorized maximum interest rate, whichever is lower, shall be applied to the unpaid balance and shall be added to the next monthly invoice. C. Good Faith Dilute -- If HCP, in good faith, disputes the amount of any invoice rendered by Hutchinson, or any part thereof, HCP shall pay the full amount of the invoice. Hutchinson shall promptly provide in writing to HCP supporting documentation acceptable in industry practice to support the amount invoiced, and HCP shall promptly provide to Hutchinson in writing the basis for any dispute, including supporting documentation acceptable in industry practice. In the event the Parties are unable to resolve such dispute, either party may pursue any remedy available by law or in equity to enforce its rights pursuant to this provision. 4 142264174.2 d. Right To Inspect -- A Party shall have the right, at its own expense, upon reasonable notice and at reasonable times, to examine and audit and to obtain copies of the relevant portion of the books, records, and telephone recordings of the other party only to the extent reasonably necessary to verify the accuracy of any statement, charge, payment, or computation made under this Agreement. This right to examine, audit, and to obtain copies shall not be available with respect to proprietary information not directly relevant to transactions under this Agreement. e. Finality -- All invoices and billings shall be conclusively presumed final and accurate and all associated claims for under- or overpayments shall be deemed waived unless such invoices or billings are objected to, in writing, with adequate explanation and/or documentation, within two years after the initial billing date for the invoice or bill in dispute. 5. Conditions of Service. Finn Capacity Requirement -- Hutchinson hereby represents and warrants that it has sufficient firm capacity to (i) provide the Reserved Capacity to HCP pursuant to the terms of this Agreement for the Term of this Agreement, and (ii) to provide HCP with firm transportation capacity pursuant to a Firm Transportation Capacity Agreement upon receiving HCP's Election Notice. 6. Right of First Refusal If during the term of this Agreement and any time prior to receipt of an Election Notice, Hutchinson receives a Bona -Fide Offer from a third party for firm transportation capacity and providing the third party with such transport capacity would impact its ability to guarantee to HCP the Reserved Capacity under this Agreement, Hutchinson shall first offer the firm transportation capacity to HCP on the same terms and conditions as are offered to the third party. HCP shall have 30 days upon receipt of the offer in which to accept said offer. If HCP accepts the offer, the Parties shall enter into a Firm Transportation Capacity Agreement on the 5 142264174.2 terms and conditions offered to the third party. A "Bona Fide Offer" means an offer by an unrelated third party for firm transportation capacity in an arm's length transaction, which offer is in writing, signed by the offeror, who must be financially capable of carrying out the terms of the offer, in a form legally enforceable against the offeror, and binding the offeror to utilize firm transportation capacity from Hutchinson. If HCP does not accept, in writing, said offer within 30 days, Hutchinson shall be free to accept the third -party offer. If such accepted third party offer is for the entire amount of the Reserved Capacity, upon a written agreement being executed with the third -party this Agreement shall terminate without any further obligation of either Party. In the event that the accepted third -party is less than the Reserved Capacity amount, HCP shall retain its right of first refusal for that portion of the Reserved Capacity not subject to the accepted third party offer and this Agreement shall continue in force and effect, except that the Reservation Charge set forth in Section 3 of this Agreement shall be reduced by a pro rata amount of the accepted third party offer (e.g., if the accepted third party offer is for 7,500 Dth, then the Reserved Capacity and Reservation Charge shall be reduced by 50%). Hutchinson shall utilize GASWorkS,TM a Windows based steady-state network modeling tool designed to assist the engineering professional analyze and design distribution, gathering, transmission, and plant piping systems, to model the Hutchinson Pipeline in making the determination of the impact of any third party capacity request. Hutchinson shall utilize sound engineering practices when determining the minimum delivery pressure allowed at the terminus of the Hutchinson pipeline. If Hutchinson does not enter into an agreement with the third party on said terms and conditions and close the transaction within 180 days, Hutchinson's right to sell the transportation capacity to the third party shall expire and the procedures described in this Section shall again be applicable. rol 142264174.2 7. Laws Reulations and Orders. a. AM)licable_Law. Service under this Agreement is subject to all present and future valid laws, orders, rules, and regulations issued by any federal, state, or local authority having jurisdiction over the matters set forth herein. b. Chang,e__inww_RegL lation. It is understood by HCP that it is economically feasible for Hutchinson to enter into this Agreement to with HCP upon the terms and conditions set forth herein due to the fact that Hutchinson is an unregulated municipal utility. If at any time any of the activities covered under this Agreement become subject to regulation by the Public Utilities Commission of the State of Minnesota or any other state or federal agency, Hutchinson shall have the option, at its sole discretion to pass all reasonable and verifiable costs incurred directly as a result of such regulation of the Hutchinson Pipeline, to HCP for the Term of this Agreement 8. Miscellaneous Provisions. a. Assi iunent. Excen)t as provided below. neither Party may assiLui this Agreement without the prior written consent of the other Part which consent shallITITITnotITITITbe unreasonably withheld conditioned orIT.jk!l d- rovided that ariy assignee shall ex ressb,assqme the assi nor'svobll ations under this Agreement unlessotherwiseagreed by the other Part_ b. Declaration Of Invalidity -- If any provision of this Agreement is determined to be invalid, void, or unenforceable by any court or other entity having jurisdiction, such determination shall not invalidate, void, or make unenforceable any other provision, agreement or covenant of this Agreement; and the parties agree to negotiate in good faith a replacement to such invalid, void or unenforceable provision and/or any other amendments as may be necessary to ensure that the Agreement as a whole reflects the original intentions of the parties. 7 142264174.2 No Continuinvo,, Waiver ­ No waiver of any breach of this Agreement shall be field to be a waiver of any other or subsequent breach. d. Limitation On..A. reement -- The Parties expressly acknowledge an. d agree that it is neither the purpose of this Agreement nor their :intent to create a partnership, joint venture contract or company, association or -trust, fiduciary relationship or partnership between them. Except as expressly provided herein, neither Party shall. have any authority to act for or assume any obligations, or responsibilities on behalf of, the other Party. e. Complete Agregmeg ­ This Agreement sets forth all understandings between the parties as of the effective data; herein. Any prior contracts, understandings and representations, whether oral or written, relating to -the matters addressed in this Agreement are merged into and superseded by this Agreement. This Agreement may be amended only by a writing executed by both Parties. f. Governin 6 Law -- The interpretation and perfon. nance of this Agreement shall be governed by the laws of Minnesota, excluding, however, any conflict of laws rule that would apply the law of another jurisdiction. 9. Confidentiality Required -----:Neither Party shall disclose directly or indirectly without the prior written consent of the other party the tonnes of this Agreement to a third party except (i) in order to comply -wiffi any applicable law, legal process, order, regulation or exchange rule; (ii) to the extent necessary for the enforcement of this Agreement; and (iii) to the extent necessary to implement and perform this Agreement. Each Party shall notify the other party of any demand or proceeding of -which it is aware which may result in disclosure of the terms of this Agreement (other than as permitted hereunder) and use reasonable efforts to prevent or limit the disclosure. The Parties shall be entitled to all remedies available at law or in equity to enforce or seek relief in connection with this confidentiality obligation.. The terms off' this Agreement shall be kept confidential by the M RDWAMM Parties hereto for two years from the expiration or termination of this Agreement. In the event that disclosure is required by a governmental body or applicable law, the Party subject to such requirement may disclose the material terms of this Agreement to the extent so required, but shall promptly notify the other Party, prior to disclosure, and shall cooperate (consistent with the disclosing Party's legal obligations) with the other Party's efforts to obtain protective orders or similar restraints with respect to such disclosure at the expense of the other Party. h. Authority To Enter Agreement -- Each Party to this Agreement represents and warrants that it has full and complete authority to enter into and perform this Agreement. Each person who executes this Agreement on behalf of either party represents and warrants that it has full and complete authority to do so and that such party will be bound thereby. No Third PjaL y Beneficiary -- There is no third party beneficiary to this Agreement. 9 142264174.2 WHEREFORE, the Parties have executed this Agreement through their duly authorized representatives effective as of the date specified above HUTCHINSON UTILITIES HEARTLAND CORN PRODUCTS COMMISSION By: By: Name: Title: Date: Witness: Date: 10 Name: Gary Anderson Title: CEO %'0 Date: 0/24/2018 Witness: ' Date: 142264174.2 HUTCHINSON UTILITIES COMMISSION���� Board Action Form �'Ylkll'M1'k� Agenda Item: Award Bid for Electrical Contracting work on Units 6 & 7 Presenter: Jeremy Carter Agenda Item Type: Time Requested (Minutes): 10 New Business Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As part of the installation and completion of unit 6 & 7 an electrical contracting company needs to be hired to provide the electrical engineering expertise to complete this portion of the project. The original estimated budget for this work was $1,575,000. Only 1 contractor provided a re -bid proposal based on the re -bid time lines. Quade Electric proposed a re -bid amount for this portion of the project at $396,730 which is significantly under the estimated budget amount. Staff and HDR recommend awarding the bid to Quade Electric. Once the bid is awarded a final contract will need to be approved along with the contractor putting in place a Certificate of Insurance, performance bond, and payment bond. BOARD ACTION REQUESTED: Approve Awarding Bid to Quade Electric Fiscal Impact: $396,730 Included in current budget: Yes Budget Change: PROJECT SECTION: Total Project Cost: $16,886,405 Remaining Cost: October 23, 2018 Mr. Jeremy Carter General Manager Hutchinson Utilities Commission 225 Michigan St. SE Hutchinson, MN 55350 RE: Bid Summary Plant 1 Units 6 & 7 Electrical Installation (Re -Bid) Dear Mr. Carter We have reviewed the bid proposal for the Plant 1 Units 6 & 7 Electrical Installation (Re -Bid) submitted 22 October 2018. A single Contractor, Quade Electric, Inc. submitted the single bid in the amount of $396,730.00. A summary of the bid analysis is attached for your review and use. Of note is the single exception to the technical specifications concerning variable frequency Drives. We recommend that this be accepted. Quade Electric, Inc. is considered to be an experienced and capable Contractor for the work anticipated. Given the analysis, HDR recommends the Plant 1 Units 6 & 7 Electric Installation Re -Bid be awarded to Quade Electric, Inc. in the Amount of $396,730.00. Please let me know if there are questions or concerns with this recommendation. Very Truly Yours, HDR Engineering, Inc. James W. Booty, PE Project Manager Encl: Plant 1 Units 6 & 7 Electrical Installation Re -Bid Analysis C: R. Blake M. Hansen D. Olsen M. Zuehls hdrilimo.coi i 701 Xenua Avenue SOLOt''LOe 6001`hrineapofis, MIN 55416 3636 (763) 591 5400 Plant 1 Units 6 7 Electrical Installation Re -Bid Analysis Fallen, Inc. E-2 Electrical Quade Electric ** Address 501 West Hwy. 212 15895 Highway 7 E 1162 Highway 7 E. City, State Granite Falls, MN Hutchinson, MN Hutchinson, MN Zip Code 56241 55350 55350 Contact Eric Johnson Mark Dobmeier Mark Muckenhirn Title CEO Estimator Phone 320.564.5257 320.552.2515 320.587.3030 E-mail Contact ILjo n s ni!, fap,.eninc'.rcun rn�arl<rl;,xr_2r_ler_trical.r_ ......... OM rnar:l<�, r.{�.i.arl.g elearI, orrii NO BID No Bid LUMPSUM (BASEBID) $396,730.00 A_ General Conditions LO Mobilization/Demobilization $5,000.00 2.0 Bonds & Insurance $5,000.00 3.0 Permits & Licenses $0.00 4.0 Field Office $1,500.00 B Grounding System $14,000.00 C HVAC Systems $28,000.00 D Power system $338,230.00 E Checkout, Start-up & Commissioning $5,000.00 g Unit Pricing $0.00 $396,730.00 Comparison - Unit Prices to LUMP SUM $0.00 EVALUATED LUMP SUM $396,730.00 R Addenda: E-1 N/A N/A N/A E-2 N/A N/A N/A S_ Attachments: Security -Bid Bond N/A N/A 5% 00 45 00 EO Statement N/A N/A Yes 00 45 37 (EOS Form) N/A N/A Yes N/A N/A Conceptual NTP date N/A N/A not stated Anticipated Completion- Begin Startup & Commissioning N/A N/A 12-Apr-19 ** Indicates Bid clarifications 1.0 VFD Drives for the supply and exhaust fana are ABB Model ACH 550-PDR series 2018.10.23 HDR 1of1