5.2. ERMUSR 11-15-2011Elk River =_
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
UTILITIES COMMISSION MEETING
ruwEnEa er N
~A~V~~
P O`~VERED T O S ERVE
Phone: 763.441.2020
Fax: 763.441.5099
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams, P.E. -Utilities Director
John Dietz -Chair
Daryl Thompson -Vice Chair
AI Nadeau -Trustee
MEETING DATE: AGENDA ITEM NUMBER:
November 15, 2011 5,2
SUBJECT:
Review and Consider Pro osed Public S endin Polic Revisions
BACKGROUND:
The Commission adopted a Public Purpose Expenditure Policy in 2006, when the City adopted
theirs. The policy was adopted to be in line with the limitations of public spending and was
mirrored to the City's policy, presenting great alignment with the City, yet without reflecting the
differences between the two entities. The policy should to be updated to better reflect the
business of the Utilities and still align with the City.
DISCUSSION:
Much of the policy pertained to items that impacted the City, and not necessarily the Utilities.
Items like a Volunteer Recognition Dinner, and meals for election night were incorporated into
our policy, yet were not applicable. Other items specific to the utilities, like Customer Service
Week, and our years-of-service recognition items were not included, and (in hindsight) should
have been.
After discussing with legal counsel, changes were made to reflect the practices of the utilities and
are presented for your review and approval.
ACTION REQUESTED:
Staff requests the Commission approve revisions to Public Purpose Expenditure Policy.
ELK RIVER MUNICIPAL UTILITIES
PUBLIC PURPOSE EXPENDITURE POLICY
POLICY
Pursuant to the statutes and laws of the State of Minnesota which regulate the expenditure of
public funds for public purposes, the Elk River Municipal Utilities believes it is necessary
and appropriate to provide assistance and guidance to the officials, employees, and
representatives of Elk River to aid in the determination of when public funds maybe spent
for a public purpose.
To provide that assistance and guidance, the Elk River Municipal Utilities adopted these
public purpose guidelines for the establishment of operating policies and procedures and the
appropriate expenditures of public funds. Based on these guidelines, the Utility Commission
authorizes the Utilities Director, appointed officials and appointed department heads to
establish administrative policies and procedures that are consistent with these guidelines and
the adopted Utility policies which implement these guidelines.
De znition: A public purpose expenditure is one which relates to the purpose for which the
Elk River Municipal Utilities exists and the duties and responsibilities of Elk River,
appointed officials, employees, and other representatives.
PUBLIC PURPOSE GUIDELINES
1. Training and development programs for Elk River Municipal Utilities employees serve a
public purpose when those training and development programs are directly related to the
performance of the employees' job-related duties and are directly related to the
programs/services for which the Utility is responsible.
2. Payment of employee work-related expenses, including travel, lodging and meal
expenses, serves a public purpose when those expenses are necessarily incurred by Elk
River Municipal Utilities employees in connection with their actual work assignments or
official duties and those expenses are directly related to the performance of the
governmental functions for which Elk River has responsibility.
3. Appropriate safety and health programs for Elk River Municipal Utilities employees
serve a public purpose because they result in healthier and more productive employees and
reduce certain costs to the rate payers of Elk River, including various costs associated with
workers compensation and disability benefit claims, insurance premiums, and lost time from
employee absences.
4. Public expenditures for appropriate Elk River Municipal Utilities employee serve a
public purpose because formally recognizing employees who make significant contributions
and demonstrate their commitment during the performance of their duties results in higher
morale and productivity among all Elk River Municipal Utilities employees, and therefore
helps the Utility to fulfill its responsibilities efficiently and more cost effectively.
5. Public expenditures for food and refreshments associated with official Elk River
Municipal Utilities functions serve a public purpose when the provision of food or
refreshments is an integral part of an official Elk River Municipal Utilities function and the
provision of food or refreshment is necessary to ensure meaningful participation by the
participants.
6. Public expenditures for appropriate community and customer outreach and similar
activities serve a public purpose when those expenditures are necessary for Elk River
Municipal Utilities to ensure the efficient operation of its programs/services, promote the
availability and use of Utility resources, and promote coordinated, cooperative planning
activities among and between the public and the private sectors.
SPECIFIC PROGRAMS AND EXPENDITURES
Every Elk River Municipal Utilities expenditure; must be valid based upon the public
purpose for which it is expended. These line-items are approved annually by the Utility
Commission as a part of the overall budget approval process.
The following items are deemed to meet the Utility Commission definition of public
purpose expenditures.
Meetings: Food/Meals/Refreshments
The Elk River Municipal Utilities recognizes that situations in which Utility business
needs to be discussed can and do occur during meal hours (i.e. luncheon meetings). In
addition, there are public and employee meetings and events in which reasonable
refreshments may add to the success of the meeting and/or event and create a more
productive workforce. Meals are allowed at training or meetings only when they are part
of a meeting or training involving official utility business and when it is the only practical
time to meet.
The following items are deemed to meet the Utility Commission definition of public
purpose expenditures in regards to food/meals/refreshments.
a. Allowed at Utility meetings and events that have the purpose of discussing Utility
issues. These meetings would normally have apre-planned agenda and would
involve predominately non-utility employees.
b. Allowed when they are part of the structured agenda for an offsite conference,
workshop, seminar, training session, or meeting in which the Utilities Director or a
department head has authorized the employee to attend for training and development
purposes. This does not include routine staff meetings.
a Allowed when they are part of a breakfast/lunch/dinner meeting for official utility
business when it is the only practical time to meet and when it involves non-utility
employee participants (i.e. business developers or business representatives). Payment
for fees relating to a special event, such as a Chamber of Commerce event, may also
be allowed when approved by the Utilities Director and when attendance is deemed to
meet the public purpose guidelines for community or customer outreach and
marketing of the Utility.
d. Allowed during non-routine, official meetings of the Utility Commission, utility
committees, advisory boards/commissions, and taskforces.
e. Allowed where employees are participating in a Utility Commission sponsored
or authorized special event or in an outside event as an official representative
of the Utility.
f. Allowed for department sponsored meetings, conferences or workshops where
the majority of invited participants are not utility employees.
g. Cookies and coffee allowed for Utility employees' monthly safety meetings
sponsored by the Safety Committee.
h. Annual safety training lunch where lunch is provided at a minimal cost while
safety training is being held.
j. Coffee is provided by the utility for employees and guests at utility buildings.
Alcoholic Beverages
The Elk River Municipal Utilities will not purchase or reimburse any employee,
Commission Member, volunteer, or agent for the purchase of alcoholic beverages.
Employee Recognition Program
The Elk River Municipal Utilities Commission recognizes the hard work and service
performed by the employees of the Elk River Municipal Utilities through a formal
Employee Recognition Program. The Utility Commission believes the benefits of
attracting, retaining and motivating employees through an Employee Recognition
Program support employee job satisfaction, which in turn impacts cooperation and
productivity. The result is to provide excellent public and customer service to better
serve the interests of the citizens of the community.
No provisions of this policy, or its administration, shall be subject to review under the
grievance or arbitration provisions of any collective bargaining agreement.
The Program will include:
1. Annual Employee Customer Service Appreciation, in conjunction with the national
Customer Service Week recognition. Annually the Utility will sponsor an Employee
Customer Service Appreciation for Utility employees. Appreciation tokens will be
distributed and a lunch or breakfast will be provided, at a modest expense with prior
Utilities Director approval.
2. Recognition Plaques. The Utility supports recognition plaques in recognition of years
of service. The employee shall receive a plaque thanking them for their dedicated years of
service to the community at 5 and 10 years of service.
3. Recognition Jackets and Watches. The Utility supports recognition jackets and watches
in recognition of years of service. The employee shall receive a jacket thanking them for
their dedicated years of service to the community at 20 years of service, and a watch at 30
years of service.
Other Events
The Utility supports other events that are planned and paid for by employees. Examples of
such events include holiday gatherings and monthly birthday recognition.
Refreshments and Food for Emergency Response Staff
Because emergency personnel are often called to perform for extended periods of time
where refreshments are important to duty performance, utility personnel may be provided
refreshments or food when it is deemed appropriate by the Utilities Director to assure the
delivery of quality emergency response service.
Employee Training
The Utility Commission supports employee training and allows for reasonable
reimbursement of registration, tuition and travel expense for conferences, seminars,
workshops, and approved city employment-related course work in accordance with the
Elk River Municipal Utilities Personnel Policy.
The Personnel Policy also contains guidelines for an education reimbursement~rogram.
Job related advanced education meets the public purpose guidelines of this policy.
Employee Wellness and Safety Programs
The Utility Commission recognizes the importance of employee fitness and health as it
relates to the overall work and life satisfaction of the employee and the impact on the
Utilities health insurance program. As such, the Utility Commission supports the
Employee Wellness Program, which has been designed to educate employees on
fitness/health issues. Also, in an effort to promote wellness, the city maintains a fitness
room equipped with exercise equipment that is available to all staff 24/7.
The Utility also supports programs that provide discounts to employees when participating
in Parks and Recreation wellness related activities.
The Employee Safety Program and programs created by the Safety Committee to promote
and retain a safe work environment are supported by the Elk River Municipal Utilities.
Refer to Meetings: Food/Meals/Refreshments
Membership and Dues
The Utility Commission has determined that the Utility will fund memberships and dues for
the Utility, Commission Members, and its employees in professional organizations and
Utility social and community organizations when the primary purpose is to promote,
advertise, improve or develop the Utility's resources and advantages and not personal
interest or gain. Said memberships shall be approved by the Utilities Director.
Membership in the Local Chamber of Commerce& Rotary
The Utility Commission has determined that it serves a public purpose for the Elk River
Municipal Utilities to maintain membership in the Elk River Chamber of Commerce and
Rotary as a means of promoting, advertising, improving, and developing the economic
resources and advantages of the Utility.
Donations to Organizations
The Utility Commission has determined that it serves a public purpose for the Elk River
Municipal Utilities to purchase candy for distribution during the local high school
homecoming and county fair parades.
Clothing and Other Sundry Items
Employees may receive T-shirts, and other sundry items of nominal value ($5.00) when
these items are made available to the general public or if these items are determined by the
Utility Director to be important to the successful involvement of employees in special
Utility sponsored or Utility supported events (i.e. National Night Out, etc.). Employees may
be supplied with uniforms, clothing, boots and other gear necessary for the performance of
their job.
Marketing Items
The Utility Commission has determined that it serves a public purpose for the Elk River
Municipal Utilities to distribute items of a nominal nature for the purpose of educating or
promoting Utility provided programs such as water and energy conservation, and electrical
safety.
Sympathy Gifts
The cost of flowers or other similar items as a sign of sympathy shall not be paid for by
public funds.
Gifts for Employees, Consultants and Others
The Utility shall not pay for gifts to employees, consultants, or similar persons working with
or for the Utility.
CONCLUSION
The Utility Commission reserves the right to not fund any item of expenditure described in
this policy. No provision of this policy, or its administration, shall be construed as being a
benefit or condition of employment by or for any employee of the Utility, nor is any
provision of this resolution to be considered a provision of the Utility's Personnel Policy.
The Elk River Municipal Utilities has determined that the above expenditures are valid
expenditures and serve a public purpose.