4.1 ERMUSR 01-10-2017 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:
January 10, 2017 4.1
SUBJECT:
Governance Manual Update
DISCUSSION:
Based on Commissioner and Staff input through surveys and discussion, our consultant John
Miner has developed drafts for the second two Governance Manual policies. These are attached
for review. The intention is to have the core Governance Manual ready for adoption in early
2017.
ACTION REQUESTED:
No action required at this time.
ATTACHMENTS:
• Draft G-1.4 Agenda Planning(annual agenda&meeting agendas)
• Draft G-1.8 Commission Committees (principles, structure, roles and responsibilities)
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DRAFT POLICY (01-05.17)
ELK RIVER MUNICIPAL UTILITIES - COMMISSION POLICY
Category: GOVERNANCE Title: AGENDA PLANNING
G
Date of Adoption: Policy Reference: G-1.4
Purpose &Summary:
With this policy, the Commission establishes its expectations for a proactive governance
process, expressed in terms of a forward-looking two year agenda of recurring governance
functions. The Commission also establishes the process for determining the agenda for each
regularly scheduled Commission meeting.
Policy:
The Commission, with support from the General Manager, will prepare, distribute, and follow a
governance agenda that spans two successive fiscal years. The Commission will prepare this
agenda annually during the fourth quarter of each fiscal year, and will review it as a part of each
regular Commission meeting. The Commission's governance agenda will include a schedule of
its recurring governance functions by month to facilitate the preparation of meeting agendas and
the conduct of regular and special Commission meetings. Recurring governance functions
include but are not limited to the following: consideration of stakeholder interests, policy review
and development, strategic planning, approval of financial and business plans including budgets,
organizational performance monitoring, internal and external audit reviews, General Manager
performance planning and evaluation, governance evaluation and development, Commission
Officer election, and committee appointments. The Commission will keep its two-year
governance agenda up-to-date and available to all Commission members, the Commission's
Legal Counsel, and the General Manager.
The Commission, with support from the General Manager, will also prepare and distribute, in a
timely manner, a detailed agenda that provides for open communications and the orderly and
efficient conduct of each regular Commission meeting, special Commission meeting and
Commission work session. Agendas for regular Commission meetings will address items from
the two-year governance agenda, Commission actions required by law, and other appropriate
business matters. Agendas for special Commission meetings and Commission work sessions
will typically focus on a limited number of specific items that are best handled in those types of
meetings.
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ERMU Commission Policy No. G-1.4 Agenda Planning
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Consistent with the preceding:
1. During the first quarter of each fiscal year (January - March):
1.1.The Commission will elect officers at its first meeting of the new fiscal year.
1.2.The Commission and Management will review ERMU's current Strategic Plan along
with the results of the Annual Business Plan for the preceding fiscal year.
1.3.The Commission will consider and approve the external audit report as specified in the
Governance Calendar.
2. During the second quarter of each fiscal year (April-June):
2.1.The Commission will formally evaluate the performance of the General Manager (See
Policy BMC 1.4 and Policy BMC-1.5).
2.2.The Commission and Management will begin its annual update of the Strategic Plan
and Financial Plan for the succeeding five-year period.
3. During the third quarter of each fiscal year (July-September):
3.1.The Commission will formally evaluate its own performance (See Policy G-1.10).
Following this evaluation, the Commission, with the support from the General
Manager, will arrange for governance education for the next fiscal year, including
education related to the determination of desired results.
4. During the fourth quarter of each fiscal year (October- December):
4.1.The Commission will review and approve Management's proposed Annual Business
Plan and Budget or the next two fiscal years.
4.2.The Commission, in conjunction with Management, will determine the stakeholder
communications plan and schedule for the next two fiscal years.
5. The Commission will prepare and distribute the agenda for each regularly scheduled
meeting as follows:
5.1.The Commission Chair and the General Manager will meet at least monthly
approximately seven (7) days in advance of each regularly scheduled Commission
meeting to develop a tentative agenda, including any items to be discussed in closed
session.
5.2.The tentative agenda and meeting packet of supporting materials will be distributed to
Commission members and others approximately six (6) days in advance of the
Commission meeting. Presentations and supplemental information items may be
provided at the Commission meeting,
5.3.The General Manager will ensure the posting of a meeting notice, along with the
tentative agenda, in compliance with applicable law.
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ERMU Commission Policy No. G-1.4 Agenda Planning
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5.4.Any Commission member or the General Manager may request additions, deletions or
other changes to the agenda at the beginning of a regular meeting when the
Commission Chair requests approval of the tentative agenda. Items requiring research
or other advance preparation should be suggested for future meeting agendas (see item
g below). No items may be added to the agenda of special meetings and work sessions.
5.5.Agendas for regular Commission meetings will be prepared in a consistent format as
shown in the most current version of the Commission's "Model Agenda". Agenda items
will be categorized by their nature, specifically identifying in order items that are
presented (a) for Commission action at the present meeting; (b) for Commission action at
a future meeting; (c) as information for monitoring policy compliance; (d) for policy review
and development; (e) as information for monitoring performance; and (f) as general
information for business context or education. Each agenda also includes an item
category designated as "Other Business" to provide additional flexibility for discussion of
matters not specifically contemplated in advance or for agenda items that do not require
Commission action and do not conform to any of the predetermined categories.
5.6. Items for Commission action at a regularly scheduled meeting may be identified as
"consent action" or "discussion and action". "Consent action" items are presented for
Commission action all together and without discussion. A Commission member may
request before the motion to approve the "consent action" items that any item(s) placed
as "consent action" be changed to "discussion and action".
5.7.Commission members are expected to ask questions and make suggestions about an
agenda item by communicating with the Commission Chair as soon as practical after
receiving the tentative agenda. The agenda for each regularly scheduled meeting will
include an item titled "Future Planning" during which time any Commission member or
the General Manager may discuss and suggest items for placement on future meeting
agendas in accordance with Policy BMC-1.1 (Controlling Authority).
5.8.The Commission prefers to introduce important decision items on the agenda at least
one meeting before the meeting at which a decision is required. This is a preference but
not a requirement.
5.9.The Commission will include monitoring of the General Manager on a meeting agenda if
monitoring reports show policy violations, or if policy criteria are to be debated
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ELK RIVER MUNICIPAL UTILITIES - COMMISSION POLICY
Category: GOVERNANCE Title: COMMISSION COMMITTEES
G
Date of Adoption: Policy Reference: G-1.8
Purpose & Summary: With this policy, the Commission establishes and communicates its
purposes and the means by which it creates and empowers committees to assist the
Commission in its work. This policy applies to any group formed by Commission action, whether
or not it is called a committee and whether or not the group includes Commission members. It
does not apply to committees formed under the authority of the General Manager.
Policy:
Commission committees, when created, will be used to reinforce the wholeness of the
Commission and never to interfere with the delegation of authority from the Commission to the
General Manager or to any officer of the Commission. Commission committees will not have
direct involvement with current management and staff employee functions.
Consistent with this general statement:
1. The Commission will use committees sparingly and only for as long as required to
accomplish its purposes. Committees may be appropriate in circumstances where the
Commission recognizes the need for more in-depth review of information and issues, and
where a committee is the best way to make effective and efficient use of available
Commission member expertise and time. Committees may also be appropriate where it
is necessary or desirable for the Commission to visibly demonstrate regulatory
compliance or accountability to its stakeholders (e.g. Audit Committee).
2. Committees ordinarily will assist the Commission in either or both of two specific ways: (1)
by preparing policy alternatives and their implications for Commission deliberation and
action, and (2) by determining the level of compliance with existing Commission policies
and evaluating the results of policy compliance or non-compliance.
3. When the Commission creates a committee, it will develop and approve by resolution a
written charter that sets forth the purposes, duration, expected outcomes, leadership,
membership, delegated authority, available resources, and other information needed for
the committee to function successfully. The General Manager will designate
management/staff committee members if so requested. The Commission, by majority
vote, will appoint Commission members to committees and remove or replace them, as
appropriate. The Commission, by majority vote, will also appoint, remove, and replace a
Committee Chair, Vice-Chair and any other positions of leadership that the Commission
determines appropriate.
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ERMU Commission Policy No. G-1.8 Commission Committees
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4. The Commission recognizes that appointments to a Committee provide opportunities for
learning and Governance development. Accordingly, the Commission endeavors to
appoint Commission members to committee leadership positions who do not already hold
a Commission office.
5. The Commission will review the charter and performance of any standing committee at
least annually to determine if changes are required or if the committee is still required.
6. Commission committees may not speak or act for the Commission except when formally
given such authority for specific and time-limited purposes. Expectations and authorities
will be carefully stated in order not to conflict with authority delegated to the General
Manager or Commission Chair.
7. Commission committees may not exercise authority over management and staff
employees. The General Manager is accountable to the whole Commission and is not
required to obtain approval of any Commission committee before taking an executive
action.
8. Commission committees will avoid relating to or identifying with discrete parts of the
organization rather than the whole. A Commission committee that has helped the
Commission create policy on a particular subject will not be used to monitor
organizational performance on that same subject, except with specific Commission
approval.
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