5.5. ERMUSR 02-09-2016 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams, P.E.—General Manager
John Dietz—Chair
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
February 9, 2016 5.5
SUBJECT:
Use and Disposal of Utility Property Policy
BACKGROUND:
In 2008 the Utilities Commission directed staff to draft a policy for the use and disposal of utility
property. This policy was adopted by the Commission on December 22,2009.
DISCUSSION:
The intent of the policy was to ensure transparency to the public for the use and disposal of
utility property. One of the requirements for this policy is to publish any item that that would be
for sale by the utility in the official newspaper. There are times when the cost to run an ad may
exceed the value of the item for sale. There are also items, such as old electric distribution
equipment or water distribution equipment which will have no market in the demographic of the
typical circulation of the official newspaper. After review and recommendation of legal counsel,
staff is recommending an option for posting those items on the Utilities' website and that a
threshold be established for a negotiated sale that is consistent with the established spending
authority of the department managers.
ACTION REQUESTED:
Staff request commission approval of the revised Use and Disposal of Utility Property Policy.
ATTACHMENTS:
• Proposed Policy Revision—P.15—Use and Disposal of Utility Property.
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Elk River
Municipal Utilities
P.15—Use and Disposal of Utility Property
1.0 Personal 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.
2.0 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, negotiated sale, 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/or the Utilities website and will be posted at the
Utilities}'-s office as set forth below.. •. . •• . . • - -• . •• • • .• . 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, 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.
• Excess Utility property determined to have a value of$5,000 or less, may be
disposed of by negotiated sale after posting a request for offers on the Utilities
website and at the Utilities office for a least 5 business days.
• 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.
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Unauthorized removal of Utility property or its conversion to personal use may result in
discipline up to and including termination.
3.0 Use of Utility Vehicles
Utility-owned vehicles are 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 necessary 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, 2011
Revised February 9, 2016
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