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4.1 ERMUSR 10-10-2017 Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Troy Adams,P.E. - General Manager MEETING DATE: AGENDA ITEM NUMBER: October 10, 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 three 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.4o Environmental Stewardship • G.4p External Communications • G.4q Community Involvement For the proposed External Communications policy,there are requirements which have not been developed yet; a data practices policy, a records management policy, and a communications policy. These downstream polices will take additional time to develop. This will be further discussed during the 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. Staff intends to present the final seven sub-polices for Commission consideration at the November Commission meeting. FINANCIAL IMPACT: None Page 1 of 2 41 ATTACHMENTS: • Proposed ERMU Policy-G.4o—Environmental Stewardship • Proposed ERMU Policy—G.4p—External Communications • Proposed ERMU Policy—G.4q—Community Involvement • ERMU Governance Policy Manual Table of Contents—For Reference Only Page 2 of 2 42 Elk River Municipal Utilities COMMISSION POLICY Section: Category: Governance Delegation to Management Policy Reference: Policy Title: G.4o Environmental Stewardship PURPOSE: With this policy,the Commission sets forth its expectations for the General Manager concerning ERMU's environmental stewardship. POLICY: ERMU will make decisions and manage its operations with appropriate consideration of the environmental consequences and will encourage and enable customers to make wise use of the utility services that ERMU provides.Consistent with this general statement and as allowed by the Commission through the approved business plan and budget,the General Manager shall develop and implement policies,procedures,and programs that: 1. Provide customers with educational materials,programs,products, and other resources that promote and support the efficient consumption of energy and water. 2. Ensure that ERMU facilities are designed, constructed, operated, and maintained in compliance with applicable environmental laws,regulations, and permit requirements. (See Legal&Regulatory Compliance Policy). 3. Contribute to the visual appeal of the ERMU service area by maintaining and,where prudent and cost effective,enhancing the appearance of its facilities. 4. Support those customers who desire to produce on their premises,purchase from ERMU,or sell to ERMU electricity that is derived from recognized renewable resources.Note: ERMU will negotiate renewable energy customer contracts in good faith with the assistance of the Minnesota Municipal Power Agency(MMPA)and within the legal imitations of ERMU's contracts with MMPA, and consistent with state law. 5. Minimize the waste produced from its operations and reuse or recycle its waste products where prudent and cost-effective. Page 1 of 2 43 ERMU Commission Policy—G.4o Environmental Stewardship 6. Support ERMU leadership in promoting and participating in community dialogue about environmental issues and values associated with the planning, construction, operation, and maintenance of its facilities. POLICY HISTORY: Adopted Month, Day, Year Page 2 of 2 44 Elk River Municipal Utilities COMMISSION POLICY Section: Category: Governance Delegation to Mangement Policy Reference: Policy Title: G.4p External Communications PURPOSE: With this policy,the Commission sets forth its expectations for the General Manager concerning ERMU's external communications. POLICY: The Commission expects the General Manager,or an authorized designee of the General Manager,to be the point of contact for communications between ERMU and external interests including the news media,state or federalgovernmental and regulatory bodies,and the elected or appointed leaders of governmental jurisdictions in which ERMU operates. Such designation does not preclude the Commission Chair(or other Commission officer or member specifically designated by the Commission)from speaking on behalf of the Commission concerning matters of Commission policy or Commission action. The Commission expects all external communications to be reasonably consistent,timely, accurate, and clearly stated,with appropriate protection of any information that has been designated as confidential. Consistent with the above general statement,the General Manager shall: 1. Protect information that has been designated confidential,except in those situations where the release of such information has been explicitly authorized by the Commission or required by law or regulation, including the Minnesota Data Practices Act(Minnesota Statutes,Chapter 13). 2. Adopt appropriate management policies andprocedures to ensure that ERMU management and staff are fully aware of their individual responsibilities and limitations with respect to information management and external communications. These policies will include a data practices policy; a records management policy; and a communications policy. Page 1 of 2 45 ERMU Commission Policy—G.4p External Communications Note: See Commission Member Role,Responsibilities, and Orientation; Commission Member Conduct; and Commission Officer Roles,Responsibilities and Succession for related policy provisions concerning external communications by Commission Members and Commission Officers. POLICY HISTORY: Adopted Month, Day, Year Page 2 of 2 46 Elk River Municipal Utilities COMMISSION POLICY Section: Category: Governance Delegation to Management Policy Reference: Policy Title: G.4q Community Involvement PURPOSE: With this policy,the Commission establishes its expectations for the General Manager with respect to ERMU's engagement with the communities that it serves. POLICY: The General Manager shall be responsive to community needs,and values by communicating proactively with community leaders and by maintaining a strong community presence in support of the Commission's Authority and Purpose Policies. Consistent with this general statement,the General Manager shall: 1. Develop, implement,monitor,and improve community engagement strategies and programs that align with ERMU's business objectives and are aimed at improving the quality of life in the various,communities that ERMU serves. 2. Promote the economic vitality of the ERMU service area. 3. Promote Commission approved economic development incentives, special rates, or terms and conditions for utility services, as described in ERMU's customer service rules, regulations and rate tariffs. 4. Encourage and support employee volunteerism that supports ERMU's community involvement strategies and programs within the various communities served by ERMU. 5. Inform appropriate community leaders and customers of ERMU's community engagement strategies and programs and their benefits. POLICY HISTORY: Adopted Month, Day, Year Page 1 of 1 47 Elk River �. Municipal Utilities COMMISSION POLICY MANUAL TABLE OF CONTENTS GOVERNANCE Authority and Purpose Policies G.1 a By-Laws G.lb Organizational Core Purpose G.lc Mission Statement G.ld Vision Statement G.le Organizational Values G.1 f Organizational Fundamentals G.lg 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 48 ERMU Commission Policy Manual Table of Contents G.4d Customer Interests G.4e Core Customer Services G.4f Employee Interests G.4g Organization, Staffing, and Compensation 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 MN Municipal Power 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 49