5.3. ERMUSR 11-15-2011Elk River
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 5 5 3 30-0430
UTILITIES COMMISSION MEETING
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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 5.3
SUBJECT:
Review and Consider Pro osed Use and Dis osal of Utili Pro ert Polic Revisions
BACKGROUND:
In late 2008, the [Jtilitics Commission gave staff direction to update and/or create a number of policies.
This included creating a new policy to address the use and disposal of utility property. In 2009 a Use and
Disposal of Utility Property was adopted by the Utilities Commission.
DISCUSSION:
The intent of this policy was to regulate the use and disposal of utility property to safeguard against
misuse or conflict of interest. In this policy there is specific language that addresses the disposal of items
that have become obsolete, damaged or unnecessary. The policy allows items, where there is a disposal
cost to the Utilities, to be given to the general public or employees. This exemption for these items is
absolute and specific to utility poles, cross arms, wood chips, and wood cable reels.
From time to time it has been noted that there are other items that have a disposal cost to the Utilities, but
are not specified under this exemption in the policy including but not limited to: overhead electrical
system components junked out during system improvement projects and cardboard boxes from supplies.
These items could be given to the general public or employees, meet the intent of the policy, and save the
Utilities the disposal cost. These items in addition to those previously listed as exemptions in this policy
could be given or sold to the general public or employees at the discretion and accountability of
management.
FINANCIAL IMPACT:
The approval of this proposed policy revision would not create additional cost to the Utilities, but would
rather reduce disposal costs.
ACTION REQUESTED:
Staff recommends approval of the proposed Use and Disposal of Utility Property Policy revisions.
ATTACHMENTS:
• Proposed Elk River Municipal Utilities Use and Disposal of Utility Property Policy Revisions -
dated November 15, 2011
Elk Ri
Municipal Utilities
7.3 USE AND DISPOSAL OF UTILITY PROPERTY
Persona[ Use
All Utility property and equipment is publicly owned. Utility-owned equipment and facilities are
not available for personal use by employees except as explicitly authorized in this or other Utility
policies. Personal use of all Utility vehicles, machinery, tools, and other equipment is strictly
prohibited.
Disposal
From time to time, Utility property becomes obsolete, is damaged, or is not needed. Such
equipment will be disposed of by the Utility through salvage, trade, or public auction. If it is
determined that a sale or auction is the best way to dispose of property, a notice must be
advertised in the official newspaper and will be posted at the Utility's office and other locations
as deemed appropriate. The appropriate department head will determine the minimum price for
each item to be sold.
• In no instance will anything of value within the scope of this policy (i.e.,
Utility property that becomes obsolete, damaged, or unnecessary) be given
away free to anyone including employees; except that in the case of used and
unwanted utility poles, cross arms, wood chips, er-wood cable reels, or other
items where there is a disposal cost, the Utility may in its discretion offer such
items to the general public for a nominal price or at no charge, and nothing in
this policy shall be interpreted to prohibit employees from accessing any such
offer on the same terms and to the same extent as the general public.
• An employee may purchase no more than one motor vehicle from the Utility
or another Elk River political subdivision in any 12 month period.
• Employees involved in the auction or process pertaining to the administration
and collection of sealed bids, or negotiating trade values are prohibited from
purchasing Utility property.
Unauthorized removal of Utility property or its conversion to personal use may result in
discipline up to and including termination.
Use of Utility Vehicles
Utility-owned vehicles aze to be used only by Utility employees for official Utility business.
Employees who drive or may be required to drive Utility vehicles and equipment are responsible
for maintaining a safe driving record and for observing all traffic laws. Seat belts must be
properly used at all times. Drivers must carry a current, valid driver's license that is adequate for
the type of vehicle being driven. Any employee who operates a Utility vehicle without a valid
driver's license will be subject to disciplinary action up to and including termination.
Passengers may be carried only when necessazy to conduct Utility business and/or when their
transportation via Utility vehicle is in the best interests of the Utility. Utility vehicles may not be
used to travel from work to an employee's residence for rest or lunch breaks without prior Utility
approval. Utility employees conducting official Utility business out of town (conventions,
meetings, etc.) may carry family members as passengers if such accompaniment does not
interfere with the best interests of the Utility and it has been approved by their department head.
Adopted December 22, 2009 Revised November 15. 201 I