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4.1 ERMUSR 07-11-2017 Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Troy Adams, P.E. - General Manager MEETING DATE: AGENDA ITEM NUMBER: July 11, 2017 4.1 SUBJECT: Delegation to Management Policies ACTION REQUESTED: Adopt the proposed Delegation to Management Policies. BACKGROUND: In 2016 the Commission approved contracting with Collaboration Unlimited to update and develop core governance policy. The decision to implement and the schedule for completion were largely based on two factors. First, the existing policy book and by-laws had not been reviewed or updated on a routine basis. Second, with the March 2017 expansion for the ERMU Commission from three to five members it was determined to be beneficial to develop and update core governance policy to serve as a guide for the expanded Commission. The work was divided into two phases, the first being the core governance policies and the second addressing the development of delegation to management policies. DISCUSSION: Presented for consideration are the next two delegation to management policies that our consultant John Miner has developed. Staff worked with ERMU's legal counsel to review the proposed delegation to management policies. The results of that review are reflected in the following proposed policies: • G.4d Customer Interests • G.4e Core Customer Services With only the first six policies of Phase 2 developed, there are gaps and overlap in policy. These gaps and overlaps are intended to be resolved as the Commission reviews and considers policy updates and revisions throughout this project. It is the intention to bring policy back for consideration at every Commission meeting. The remaining policies to be developed in the delegation to management are reflected in the tentative table of contents which is attached for reference. FINANCIAL IMPACT: None ATTACHMENTS: • Proposed ERMU Policy—G.4d—Customer Interests Page 1 of 2 160 • Proposed ERMU Policy—G.4e—Core Customer Services • ERMU Governance Policy Manual Table of Contents—For Reference Only Page 2 of 2 161 Elk River Municipal Utilities COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4d Customer Interests PURPOSE: With this policy, the Commission communicates its expectations for the General Manager's understanding of customer needs and management/staff employee interaction with customers and customer representatives. POLICY: In all ERMU interactions with customers and customer representatives,the General Manager shall not intentionally allow situations,processes,actions,behaviors or attitudes that are unsafe, undignified,inattentive, disrespectful or unresponsiveto customer needs and requests, or otherwise in conflict with the organizational values advocated by the Commission. (See Organizational Values Policy). Consistent with this general statement,the General Manager shall: 1. Keep the Commission and management/staff employees informed about customer expectations for and satisfaction with ERMU's services and conduct. 2. Keep the Commission and management/staff employees informed about current and emerging customer needs that are relevant to ERMU's core purpose and mission. 3. Provide relevant information to customers about ERMU services, using all appropriate media. 4. Keep customers reasonably informed about current and emerging issues,regulations,policies or practices that may affect their ERMU utility services and/or their use of those services. 5. Provide customers with convenient and secure access to their personal or business account information and to other information that will enable them to be informed and efficient Page 1 of 2 162 ERMU Commission Policy— G.4d Customer Interests consumers of the services that ERMU provides. 6. Comply with all applicable legal and regulatory requirements for collecting, reviewing, transmitting, and storing customer information to protect it against improper access and use, damage or loss, and unauthorized destruction. (See Legal& Regulatory Compliance Policy). 7. Keep customers reasonably informed about potential service outages, emergency preparedness, safe use practices, and service restoration status. 8. Provide customers with various means to express their service needs, concerns, or ideas to ERMU. 9. Promptly handle identified customer issues and utilize a dispute resolution process, if necessary,through which any unresolved issues are brought to the attention of the Dispute Resolution Committee for resolution. POLICY HISTORY: Adopted Month, Day, Year Page 2 of 2 163 Elk River Municipal Utilities COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4e Core Customer Services PURPOSE: With this policy, the Commission sets forth its expectations for the General Manager concerning core customer services and related business opportunities. POLICY: The ERMU Commission expects the General Manager to ensure that customers receive safe, reliable, cost effective and quality long term electric and water utility services that directly support ERMU's core purpose and mission as stated in the Organizational Core Purpose Policy and Mission Statement Policy. ERMU's"core customer services" are retail electric and water services. Consistent with this general statement,the General Manager shall: 1. Identify and keep the Commission informed about the full range of business opportunities that are reasonably available to ERMU for the provision of its core customer services, bringing appropriate recommendations to the Commission for consideration and approval. 2. Keep him/herself and others in the organization informed about electric and water services trends,technologies, and practices through independent research,membership in appropriate organizations, and participation in appropriate industry workshops, seminars, and other similar opportunities. 3. Actively participate in relevant associations and advocacy groups, and stay informed about the national,regional, and state electric power and water supply markets,market participants, market management, and related legal and regulatory initiatives that may directly affect the interests of ERMU customers. Work to mitigate regulatory risks by acting on behalf of the interests of ERMU and its customers. Page 1 of 2 164 ERMU Commission Policy—G.4e Core Customer Services 4. Maintain professional and productive relationships with utility service providers,regulators, professional experts and others with whom ERMU must collaborate to create and execute successful business opportunities. 5. Clearly articulate and consistently demonstrate a high value proposition for customers who receive ERMU's core customer services. 6. Establish core customer service standards for reliability, cost, quality,regulatory compliance, and other factors important to ERMU's customers. 7. Routinely monitor and keep the Commission informed about ERMU's overall performance with respect to its core customer services standards, as well as ERMU's business strategies and initiatives to improve those services. The General Manager is expected to look for and consider new business opportunities but shall not implement any new core customer services or pursue any related business opportunities without legal authority and clear direction to do so from the Commission- approved ERMU Strategic Plan, Annual Business Plan or specific authorization of the Commission. POLICY HISTORY: Adopted Month, Day, Year Page 2 of 2 165 Elk River Municipal Utilities COMMISSION POLICY MANUAL TABLE OF CONTENTS GOVERNANCE Authority and Purpose Policies G.1 a Bylaws G.1b Organizational Core Purpose G.1 c Mission Statement G.1 d Vision Statement G.le Organizational Values G.1 f Organizational Fundamentals G.1 g Planning Themes Governance Policies G.2 Commission Purpose G.2a Commission—City Council Relationship and Roles G.2b Governing Style G.2c Agenda Planning G.2d Commission Member Role, Responsibilities and Orientation G.2e Commission Member Conduct G.2f Commission Officer Roles, Responsibilities and Succession G.2g Commission Committees G.2g1 Wage & Benefits Committee Charter G.2g2 Financial Reserves and Investment Committee Charter G.2h Independent Advisors to the Commission Commission—Management Connection Policies G.3 Commission- Management Roles G.3a Controlling Authority G.3b Delegation of Authority to the General Manager G.3c General Manager Accountability G.3d Monitoring Performance of the General Manager G.3e General Manager Performance Planning and Evaluation Delegation to Management Policies G.4 Corporate Limitations G.4a Succession of Leadership G.4b Information and Support to the Commission G.4c Strategic and Business Planning Page 1 of 2 166 ERMU Commission Policy Manual Table of Contents G.4d Customer Interests G.4e Core Customer Services G.4f Employee Interests G.4g Organization and Staffing G.4h Financial Planning and Budgeting G.4i Financial Condition and Transactions G.4i 1 Investments G.4i2 Reserve Funds G.4i3 Debt Issuance and Payment G.4i4 Procurement G.4j Cost Allocation and Recovery G.4j 1 Rates & Charges for Electric Services G.4j2 Rates & Charges for Water Services G.4k Joint-Action Agency Relationship, Representative and Governance G.41 Protection of Assets (physical property, information, cash, investments) G.4m Corporate Risk Management G.4n Legal &Regulatory Compliance G.4o Environmental Stewardship G.4p External Communications (public, legislative, allied organizations) G.4q Community Involvement Results Policies G.5 Goals and Results Page 2 of 2 167