4.4 ERMUSR 04-10-2018 4
Elk River �.
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Theresa Slominski - Finance & Office Manager
MEETING DATE: AGENDA ITEM NUMBER:
April 10, 2018 4.4
SUBJECT:
Public Purpose Expenditure Policy
ACTION REQUESTED:
Approve the revised Public Purpose Expenditure Policy
BACKGROUND:
A Public Purpose Expenditure Policy was adopted in 2011. The policy was revisited by
management, and it was decided to revamp the entire policy for verbiage relating to the
utility/Elk River Municipal Utilities (ERMU), and allow for an updated review from legal
counsel. Both Peter Beck and the law firm of Campbell Knutson have reviewed the policy.
DISCUSSION:
As mentioned above, the Public Purpose Expenditure Policy has not been revised since 2011 and
a review seemed warranted. Originally the policy was obtained from the City and modified for
ERMU applicability. Some of the items retained from the City policy were not necessary, some
additional items have been introduced since 2011, and some items longstanding in practice were
absent. Highlights of some of those items are: references to collective bargaining agreements
were removed as it is not applicable to ERMU; ERMU participation in the local parade(s) was
clarified; and the recognition provided to retiring employees was not identified in the policy, nor
was there policy for recognizing exiting commissioners. Other changes are largely semantics
and clarifying verbiage. A redlined copy and a clean final copy are included for your review.
ATTACHMENTS:
• ERMU Policy—A.19 Public Purpose Expenditure Policy—Redlined
• ERMU Policy—A.19 Public Purpose Expenditure Policy—Final Copy
Page 1 of 1
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Elk River -�-�
Municipal Utilities
A.19–Public Purpose Expenditure Policy
1.0 Policy
Pursuant to the statutes and laws of the State of Minnesota which regulate the expenditure of
public funds for public purposes,the Elk River Municipal Utilities (ERMU)believes it is
necessary and appropriate to provide assistance and guidance to the officials, employees,
and representatives of ERMUE1 er-to aid in the determination of when public funds
may be spent for a public purpose.
To provide that assistance and guidance, the ERMU Board of Commissioners hasElk River
Municipal Utilities adopted thisthese 1public purpose Expenditure Policyguideli es fort e
establishing -e€operating policies and procedures forte the appropriate expenditures
of public funds. , Tthe Utility Commission authorizes the General
Manager- ' ' •- D• - . . . .. • . . .. . _ . . ..•• . . ... -• - - - .. to establish
administrative policies and procedures that are consistent with this Policy.these guidelines
Definition: A public purpose expenditure is one which relates to the purpose for which the
Elk River Municipal Utilities exists_and the duties and responsibilities of Elk River,
2.0 Public Purpose Guidelines
A. Training and development programs for ERMU- ': - •. - • ' •- employees
serve a—public purpose when those training and development programs are directly related
to the performance of the employees'job-related duties and are directly related to the
programs/services for which ERMUility is responsible.
B. Payment of employee work-related expenses, including travel, lodging and meal
expenses, serves a public purpose when those expenses are necessarily incurred by
ERMUEIk River Municipal Utilities employees in connection with their actual work
assignments or official duties,and those expenses are directly related to the performance of
the governmental functions for which Elk River has responsibility.
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C. Appropriate safety and health programs for ERMUEIk River Municipal Utilities
employees serve a public purpose because they result in healthier and more productive
employees and reduce certain costs to ERMU customersthe rate payers of Elk River,
including various costs associated with workers compensation and disability benefit claims,
insurance premiums, and lost time from employee absences.
D. Public expenditures for appropriate Employee recognition and achievement awards for
ERMUEIk River Municipal Utilities employees are appropriate public expenditures and
serve a—public purpose because formally recognizing employees who make significant
contributions and demonstrate their commitment during the performance of their duties
results in higher morale and productivity among all ERMUEIk River Municipal Utilities
employees, and therefore helps ERMUthe Utility to fulfill its responsibilities efficiently and
more cost effectively.
E. Public expenditures for food and refreshments associated with official ERMUEIk River
Municipal Utilities functions and meetings serve a public purpose when the provision of
food or refreshments is an integral part of an official ERMUEIk River Municipal Utilities
function, or the meeting or event occurs over a meal time and the provision of food or
refreshment is reasonably necessary to promote timely attendance and ensure meaningful
participation by the participants.
F. Public expenditures for appropriate community and customer outreach and similar
activities serve a public purpose when those expenditures are necessary for ERMUEIk River
to ensure the efficient operation of its programs/services, promote the
availability and use of ERMUUtility resources, and promote coordinated, cooperative
planning activities among and between the public and the private sectors.
3.0 Specific Programs and Expenditures
Every ERMU- ': - - ' ' •- expenditure;must be valid based upon the
public purpose for which it is expended. These line-items are approved annually by the
ERMUUtility Commission as a-part of the overall budget approval process.
The following items are deemed to meet the ERMUUtility Commission's definition of
public purpose expenditures
A. Meetings: Food/Meals/Refreshments
ERMUThe Elk River Municipal Utilities recognizes that situations in which ERMU
Utility business needs to be discussed can and do occur during meal hours (i.e.
luncheon meetings). In addition, there are public and employee meetings and events in
which reasonable refreshments may add to the success of the meeting and/or event and
create a more productive workforce. Meals are allowed at training or meetings only
when they are part of a meeting or training involving official ERMUlitility business,
and are reasonably necessary or productive to conduct the meeting over those meal
periods. and when it is the only practical time to meet.
The following items are deemed to meet the ERMUUtility Commission's definition of
public purpose expenditures in regards to food/meals/refreshments.
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1. Allowed at ERMUUtility meetings and events that have the purpose of
discussing official ERMU business.Utility issues. These meetings would normally
employees.
2. Allowed when they are part of the structured agenda for an offsite conference,
workshop, seminar, training session, or meeting in which the General ManagerUtilities
fester or a department head has authorized the employee to attend for training and
development purposes. This does not include routine staff meetings.
3. Allowed when they are part of a breakfast/lunch/dinner meeting for official
ERMUutility business when it is the only practical time to meet and when it involves
non-ERMUetility employee participants (i.e. business developers or business
representatives). Payment for fees relating to a special event, such as a Chamber of
Commerce event, may also be allowed when approved by the General
ManagerUtilities Director and when attendance is deemed to meet the public purpose
guidelines for community or customer outreach and marketing of ERMUthe Utility.
4. Allowed during non routine, official meetings of the Utility Commission, utility
committees, advisory boards/commissions, and taskforces.
5. Allowed where employees are participating in an ERMUa Utility
Commission sponsored or authorized special event or in an outside event as an
official representative of ERMUthe Utility.
6. Allowed for department sponsored meetings, conferences or workshops
where the majority of invited participants are not ERMUutility employees.
7. Cookies and coffee allowed for ERMUUtility employees' monthly safety
meetings sponsored by the Safety Committee.
8. Annual safety training lunch where lunch is provided at a minimal cost while
safety training is being held.
9. Coffee is provided by ERMUthe-utility for employees and guests at
ERMUity
buildings.
B. Alcoholic Beverages
The Elk River Municipal Utilities ERMU will not purchase or reimburse any
employee,
—Commission Member, volunteer, or agent for the purchase of alcoholic beverages.
C. Employee Recognition Program
ERMU - - ': :. _ ' ' •- recognizes the hard work and
service
—performed by ERMU the employees of the Elk River Municipal Utilities through a
formal
Employee Recognition Program. The ERMUUtility Commission believes the
benefits of
attracting, retaining and motivating employees through an Employee Recognition
Program support employee job satisfaction, which in turn impacts cooperation and
productivity. The result is to provide excellent public and customer service to better
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142
serve the interests of the citizens of the community.
grievance or arbitration provisions of any collective bargaining agreement.
The Program will include:
1. Annual Employee Customer Service Appreciation, in conjunction with the national
Customer Service Week recognition. Annually ERMUthe Utility will sponsor an
Employee Customer Service Appreciation for ERMUU employees. Appreciation
tokens will be distributed and a lunch or breakfast will be provided, at a modest expense
with prior General ManagerUtilities Director approval.
2. Recognition Plaques. ERMUThe Utility supports recognition plaques in recognition
of—years of service. ERMUThc employees shall receive a plaque thanking them for
their dedicated years of service to the community at 5 and 10 years of service.
3. Recognition Jackets and Watches. ERMUThe Utility supports recognition jackets
and watches in recognition of years of service. ERMUThe employees shall receive a
jacket thanking them for their dedicated years of service to the community at 20 years of
service, and a watch at 30 years of service.
4. Recognition Lamp. ERMU supports recognition of long term employees retiring
after a minimum of 20 years of service. ERMU employees shall receive a novelty meter
lamp with an engraved plate noting years of service.
D. Other Events
ERMUThe Utility supports other events that are planned and paid for by employees.
Examples
—of such events include holiday gatherings and monthly birthday recognition.
E. Refreshments and Food for Emergency Response Staff
Because emergency personnel are often called to perform for extended periods of time
where refreshments are important to duty performance, ERMU'.t�y personnel may be
provided refreshments or food when it is deemed appropriate by the General
ManagerUtilities Director to
assure the delivery of quality emergency response service.
F. Employee Training
ERMU •- - ' : - supports employee training and providesallews for
reasonable
—reimbursement of registration, tuition and travel expense for conferences, seminars,
workshops, and approved ERMUcity employment-related course work in accordance
with
—the ERMU- ': . .- - ' ' •- Personnel Policy.
The Personnel Policy also contains guidelines for an education reimbursement program.
Job related advanced education meets the public purpose guidelines of this Ppolicy.
G. Employee Wellness and Safety Programs
ERMUThe Utility Commission recognizes the importance of employee fitness and
health as it
relates to the overall work and life satisfaction of the employee and the impact on the
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ERMUUtilities health insurance program. As such, ERMUthe Utility Commission
supports the
Employee Wellness Program, which has been designed to educate employees on
fitness/health issues. Also, in an effort to promote wellness,the city maintains a fitness
room equipped with exercise equipment that is available to all ERMU staff 24/7.
The Utility also supports programs that-provide discounts to employees when participating
in Parks and Recreation wellness relates activities.
H. The Employee Safety Program
Programsrograms created by the Safety Committee to promote and retain a safe work
environment are supported by ERMUthe Elk River Municipal Utilities. Refer to Meetings:
Food/Meals/Refreshments
114. Membership and Dues
The ERMU Board of CommissionersUtility Commission has determined that ERMUthe
Utility will fund memberships and dues
for ERMUthe Utility, Commission Members;and its employees in professional
organizations
and Utility social and community organizations when the primary purpose is to promote,
advertise, improve or develop the ERMU'sUtility's resources and advantages and not
personal
interest or gain. Said memberships shall be approved by the General ManagerUtilities
Direetor.
JL. Membership in the Local Chamber of Commerce & Rotary
The ERMU Board of CommissionersUtility Commission has determined that it serves a
public purpose for ERMUthe Elk River
Municipal Utilities to maintain membership in the Elk River Chamber of Commerce and
Rotary as a means of promoting, advertising, improving, and developing the economic
resources and advantages of ERMUthe Utility.
K4. Donations to Organizations
The ERMU Board of Commissionerstemmissiefi has determined that it serves a
public purpose for ERMUthe Elk River
Municipal Utilities to purchase decorations, and candy for distribution at local parades
and similar community eventsduring the local high school
homecoming and county fair parades.
LK Clothing and Other Sundry Items
ERMU eEmployees may receive T-shirts, and other sundry items of nominal value
($5.00)when
these items are made available to the general public, or if these items are determined by
the General Manager Utility Director to be important to the successful involvement of
employees in
special ERMUUtility sponsored or Utility supported events (i.e. National Night Out,
etc.).
Employees may be supplied with uniforms, clothing, boots and other gear necessary for
the performance of their job.
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Mb. Marketing Items
The yERMU Board of Commissioners has determined that it serves a public
purpose for ERMUthe Elk River
Municipal Utilities to distribute items of a nominal nature for the purpose of educating or
promoting ERMUU�tility provided programs such as water and energy conservation, and
electrical safety.
NM. Sympathy Gifts
The cost of flowers or other similar items as a sign of sympathy shall not be paid for with
ERMU-1}y
public funds.
ON. Gifts for Employees, Consultants and Others
ERMUThe Utility shall not pay for gifts to employees, consultants, or similar persons
working
with or for the ERMUU .
P. Recognition Plaques for Commissioners
ERMU supports recognition plaques in recognition of years of service. ERMU
Commissioners shall receive a plaque thanking them for their dedicated years of service
upon completion of their service on the Board.
4.0 Conclusion
The ERMU Board ofy Commissioners reserves the right to not fund any item of
expenditure described in this Ppolicy. No provision of this PPolicy, or its administration,
shall be construed as being a benefit or condition of employment by or for any employee of
ERMUthe Utility, nor is any provision of this Policyresolutien to be considered a provision
of the ERMU'sUtility's Personnel Policy.
The ERMU Board of CommissionersElk Rivcr Municipal Utilities has determined that the
above expenditures are valid expenditures and serve a public purpose.
Adopted November 15,2011
Revised,Anril 10.2018
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4*--
„
Elk River
Municipal Utilities
A.19—Public Purpose Expenditure Policy
1.0 Policy
Pursuant to the statutes and laws of the State of Minnesota which regulate the expenditure of
public funds for public purposes, Elk River Municipal Utilities (ERMU) believes it is
necessary and appropriate to provide assistance and guidance to officials, employees, and
representatives of ERMU to aid in the determination of when public funds may be spent for
a public purpose.
To provide that assistance and guidance, the ERMU Board of Commissioners has adopted
this Public Purpose Expenditure Policy establishing operating policies and procedures for
the appropriate expenditure of public funds. The Utility Commission authorizes the General
Manager to establish administrative policies and procedures that are consistent with this
Policy.
Definition:A public purpose expenditure is one which relates to the purpose for which Elk
River Municipal Utilities exists.
2.0 Public Purpose Guidelines
A. Training and development programs for ERMU employees serve a public purpose when
those training and development programs are directly related to the performance of the
employees'job-related duties and are directly related to the programs/services for which
ERMU is responsible.
B. Payment of employee work-related expenses, including travel, lodging and meal
expenses, serves a public purpose when those expenses are necessarily incurred by
ERMU employees in connection with their actual work assignments or official duties,
and those expenses are directly related to the performance of the governmental functions
for which Elk River has responsibility.
C. Appropriate safety and health programs for ERMU employees serve a public purpose
because they result in healthier and more productive employees and reduce certain costs
to ERMU customers, including various costs associated with workers compensation and
disability benefit claims, insurance premiums, and lost time from employee absences.
146
D. Employee recognition and achievement awards for ERMU employees are appropriate
public expenditures and serve a public purpose because formally recognizing employees
who make significant contributions and demonstrate their commitment during the
performance of their duties results in higher morale and productivity among all ERMU
employees, and therefore helps ERMU to fulfill its responsibilities efficiently and more
cost effectively.
E. Public expenditures for food and refreshments associated with official ERMU functions
and meetings serve a public purpose when the provision of food or refreshments is an
integral part of an official ERMU function, or the meeting or event occurs over a meal
time and the provision of food or refreshment is reasonably necessary to promote timely
attendance and meaningful participation by the participants.
F. Public expenditures for appropriate community and customer outreach and similar
activities serve a public purpose when those expenditures are necessary for ERMU to
ensure the efficient operation of its programs/services, promote the availability and use
of ERMU resources, and promote coordinated, cooperative planning activities among
and between the public and the private sectors.
3.0 Specific Programs and Expenditures
Every ERMU expenditure must be valid based upon the public purpose for which it is
expended. These line-items are approved annually by the ERMU Commission as part of
the overall budget approval process.
The following items are deemed to meet the ERMU Commission's definition of public
purpose expenditures:
A. Meetings - Food/Meals/Refreshments
ERMU recognizes that situations in which ERMU business needs to be discussed can
and do occur during meal hours (i.e. luncheon meetings). In addition, there are public
and employee meetings and events in which reasonable refreshments may add to the
success of the meeting and/or event and create a more productive workforce. Meals
are allowed at training or meetings only when they are part of a meeting or training
involving official ERMU business, and are reasonably necessary or productive to
conduct the meeting over those meal periods.
The following items are deemed to meet the ERMU Commission's definition of
public purpose expenditures in regards to food/meals/refreshments:
1. Allowed at ERMU meetings and events that have the purpose of discussing
official ERMU business.
2. Allowed when they are part of the structured agenda for an offsite conference,
workshop, seminar, training session, or meeting which the General Manager or a
department head has authorized the employee to attend for training and
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147
development purposes. This does not include routine staff meetings.
3. Allowed when they are part of a breakfast/lunch/dinner meeting for official
ERMU business when it is the only practical time to meet and when it involves
non-ERMU employee participants (i.e. business developers or business
representatives). Payment for fees relating to a special event, such as a Chamber
of Commerce event, may also be allowed when approved by the General Manager
and when attendance is deemed to meet the public purpose guidelines for
community or customer outreach and marketing of ERMU.
4. Allowed during official meetings of the Utility Commission, utility committees,
advisory boards/commissions, and taskforces.
5. Allowed where employees are participating in an ERMU sponsored or
authorized special event, or in an outside event as an official
representative of ERMU.
6. Allowed for department sponsored meetings, conferences or workshops
where the majority of invited participants are not ERMU employees.
7. Cookies and coffee allowed for ERMU employees' monthly safety
meetings sponsored by the Safety Committee.
8. Annual safety training lunch where lunch is provided at a minimal cost
while safety training is being held.
9. Coffee is provided by ERMU for employees and guests at ERMU
buildings.
B. Alcoholic Beverages
ERMU will not purchase or reimburse any employee, Commission Member,
volunteer, or agent for the purchase of alcoholic beverages.
C. Employee Recognition Program
ERMU recognizes the hard work and service performed by ERMU employees
through a formal Employee Recognition Program. The ERMU Commission believes
the benefits of attracting, retaining and motivating employees through an Employee
Recognition Program support employee job satisfaction, which in turn impacts
cooperation and productivity. The result is to provide excellent public and customer
service to better serve the interests of the citizens of the community.
The Program will include:
1. Annual Employee Customer Service Appreciation, in conjunction with the
national Customer Service Week recognition. Annually ERMU will sponsor an
Employee Customer Service Appreciation for ERMU employees. Appreciation
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tokens will be distributed and a lunch or breakfast will be provided, at a modest
expense with prior General Manager approval.
2. Recognition Plaques. ERMU supports recognition plaques in recognition of
years of service. ERMU employees shall receive a plaque thanking them for their
dedicated years of service to the community at 5 and 10 years of service.
3. Recognition Jackets and Watches. ERMU supports recognition jackets and
watches in recognition of years of service. ERMU employees shall receive a
jacket thanking them for their dedicated years of service to the community at 20
years of service, and a watch at 30 years of service.
4. Recognition Lamp. ERMU supports recognition of long term employees retiring
after a minimum of 20 years of service. ERMU employees shall receive a novelty
meter lamp with an engraved plate noting years of service.
D. Other Events
ERMU supports other events that are planned and paid for by employees. Examples of
such events include holiday gatherings and monthly birthday recognition.
E. Refreshments and Food for Emergency Response Staff
Because emergency personnel are often called to perform for extended periods of time
where refreshments are important to duty performance, ERMU personnel may be
provided refreshments or food when it is deemed appropriate by the General Manager to
assure the delivery of quality emergency response service.
F. Employee Training
ERMU supports employee training and provides for reasonable reimbursement of
registration, tuition and travel expense for conferences, seminars, workshops, and
approved ERMU employment-related course work in accordance with the ERMU
Personnel Policy. The Personnel Policy also contains guidelines for an education
reimbursement program. Job related advanced education meets the public purpose
guidelines of this Policy.
G. Employee Wellness Program
ERMU recognizes the importance of employee fitness and health as it relates to the
overall work and life satisfaction of the employee and the impact on the ERMU health
insurance program. As such, ERMU supports the Employee Wellness Program, which
has been designed to educate employees on fitness/health issues. Also, in an effort to
promote wellness,the city maintains a fitness room equipped with exercise equipment
that is available to all ERMU staff 24/7.
H. Employee Safety Program
Programs created by the Safety Committee to promote and retain a safe work
environment are supported by ERMU. Refer to Meetings: Food/Meals/Refreshments
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I. Membership and Dues
The ERMU Board of Commissioners has determined that ERMU will fund memberships
and dues for ERMU Commission Members and employees in professional organizations
and social and community organizations when the primary purpose is to promote,
advertise, improve or develop the ERMU's resources and advantages and not personal
interest or gain. Said memberships shall be approved by the General Manager.
J. Membership in the Local Chamber of Commerce &Rotary
The ERMU Board of Commissioners has determined that it serves a public purpose for
ERMU to maintain membership in the Elk River Chamber of Commerce and Rotary as a
means of promoting, advertising, improving, and developing the economic resources and
advantages of ERMU.
K. Donations to Organizations
The ERMU Board of Commissioners has determined that it serves a public purpose for
ERMU to purchase decorations, and candy for distribution at local parades and similar
community events.
L. Clothing and Other Sundry Items
ERMU employees may receive T-shirts, and other sundry items of nominal value when
these items are made available to the general public, or if these items are determined by
the General Manager to be important to the successful involvement of employees in
special ERMU sponsored or supported events (i.e. National Night Out, etc.).
M. Marketing Items
The ERMU Board of Commissioners has determined that it serves a public purpose for
ERMU to distribute items of a nominal nature for the purpose of educating or promoting
ERMU provided programs such as water and energy conservation, and electrical safety.
N. Sympathy Gifts
The cost of flowers or other similar items as a sign of sympathy shall not be paid for
with ERMU funds.
O. Gifts for Employees, Consultants and Others
ERMU shall not pay for gifts to employees, consultants, or similar persons working with
or for the ERMU.
P. Recognition Plaques for Commissioners
ERMU supports recognition plaques in recognition of years of service. ERMU
Commissioners shall receive a plaque thanking them for their dedicated years of service
upon completion of their service on the Board.
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150
4.0 Conclusion
The ERMU Board of Commissioners reserves the right to not fund any item of expenditure
described in this Policy. No provision of this Policy, or its administration, shall be
construed as being a benefit or condition of employment by or for any employee of ERMU,
nor is any provision of this Policy to be considered a provision of the ERMU's Personnel
Policy.
The ERMU Board of Commissioners has determined that the above expenditures are valid
expenditures and serve a public purpose.
Adopted November 15,2011
Revised,April 10,2018
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