4.2 ERMUSR 12-11-2018 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Troy Adams, P.E.—General Manager
MEETING DATE: AGENDA ITEM NUMBER:
December 11, 2018 4.2
SUBJECT:
Agenda Planning Policy and the Annual Governance Agenda
ACTION REQUESTED:
• Adopt the revised G.2c Agenda Planning Policy.
• Adopt the 2019 Governance Agenda.
BACKGROUND:
In May 2017,the commission adopted a comprehensive manual of governance policies based on
the Carver Model of governance. Included in those governance policies is a policy on agenda
planning.
DISCUSSION:
Governance Policy G.2c Agenda Planning was adopted by the commission to establish its
"expectations for a proactive governance process, expressed in terms of a forward-looking two
year agenda of recurring governance functions." In addition,the rolling two year agenda creates
transparency for the occurrence of the most critical responsibilities of the commission.
When developed,the rolling two year agenda requirement was a discussion point. It was
questioned whether a two year forward-looking agenda was needed or if an annual agenda would
suffice. Our third party consultant recommended we try the two agenda to see how it works. In
application of the new governance policy, staff recommends changing the two year requirement
to a one year annual requirement.
There are two additional changes proposed for the policy. First, staff recommends adding item
2b on page two of the policy regarding the financial reserves policy and reserve balances. This
language is consistent with practice.
Second, staff recommends adding item 3b on the page two of the policy regarding strategic
planning. Management currently performs a strategic planning session in January and July every
year. The results from those sessions end up in the Annual Business Plan(budget and capital
project 5-year forecast). Staff is recommending adding a commission requirement to participate
in that process during the third quarter every year. The reason for this change is to have the
commission engage in the visioning part on the strategic planning process in addition to having
final approval of the Annual Business Plan in December. The proposed revisions are reflected in
the attached policy for commission consideration.
Attached for discussion and commission approval is a proposed 2019 Governance Agenda.
Page 1 of 2
53
ATTACHMENTS:
• Proposed Revision to ERMU Commission Policy—G.2c—Agenda Planning
• 2019 ERMU Governance Agenda
Page 2 of 2
54
Elk River
Municipal Utilities COMMISSION POLICY
Section: Category:
Governance Governance Policies
Policy Reference: Policy Title:
G.2c Agenda Planning
PURPOSE:
With this policy,the Commission establishes its expectations for a proactive governance process,
I 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 succcssivcthe upcoming fiscal years. The Commission will
update this agenda annually during the fourth quarter of each fiscal year by removing the current
year, updating the next year, and adding the following year. The Commission will review the
agenda 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 General Manager,with direction from the Commission,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 twe-year-governance agenda, Commission actions required by law, and other appropriate
business matters.Agendas for special Commission meetings and Commission work sessions will
Page 1 of 4
55
ERMU Commission Policy—G.2c Agenda Planning
typically focus on a limited number of specific items that are best handled in those types of
meetings.
Consistent with the preceding:
1. During the first quarter of each fiscal year(January - March):
a. The Commission will elect officers at its March meeting, following the appointment of
Commissioners by the City Council.
b. 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.
2. During the second quarter of each fiscal year (April-June):
a. The Commission will consider and approve the external audit report as specified in the
Governance CalendarAgenda.
a:b. The Commission will review the financial reserves balances and related policy. The
Commission shall take action as appropriate per policy.
lb:c.The Commission and Management will evaluate the Performance Matrix for the
preceding fiscal year.
e:d.The Commission will formally evaluate the performance of the General Manager.
d. 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):
a. The Commission will formally evaluate its own performance. 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.
b. The Commission and Management will begin its annual update of the Strategic Plan and
Financial Plan for the succeeding five-year period.
4. During the fourth quarter of each fiscal year(October- December):
a. The Commission will review and approve Management's proposed five-year Capital
Improvement Plan as well as its proposed Annual Business Plan with budget-mi.,rates,,
and fees for the next fiscal year.
b. The Commission, in conjunction with Management,will determine the stakeholder
communications plan and schedule for the next fiscal year.
Page 2 of 4
56
ERMU Commission Policy— G.2c Agenda Planning
5. The Commission will direct the General Manager to prepare and distribute the agenda for
each regularly scheduled meeting as follows:
a. The Commission Chair and the General Manager will discuss, 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.
b. The tentative agenda and meeting packet of supporting materials will be distributed to
Commission members and others approximately three (3) days in advance of the
Commission meeting. Presentations and supplemental information items may be provided
at the Commission meeting,
c. The General Manager will ensure the posting of a meeting notice, along with the tentative
agenda, in compliance with applicable law.
d. 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. No items may be added to
the agenda of special meetings and work sessions.
e. 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:
i. Governance—Includes agenda items: call meeting to order, pledge of allegiance,
consider agenda, resolutions, and similar actions of governance.
ii. Consent—Includes items that are considered routine. There may be questions
asked for clarification, but typically these items have no discussion. The items on
consent are presented for Commission consideration all together and by one
motion. A Commission member may request before the motion to approve the
"Consent" items that any item(s) be moved from "Consent" to "Business Action."
iii. Open Forum—This is an opportunity for public participation. Speakers will be
required to state their name and address for public record. Items will be heard at
the discretion of the Commission Chair. Items will be for discussion only; no
action can be taken on the topic during that meeting.
iv. Policy& Compliance—Policy review, policy development, and compliance
monitoring.
v. Business Action—Current business action requests and performance monitoring
reports.
vi. Business Discussion—This includes strategic planning, general updates, and
informational reports. Topics may be tabled for future Business Action
consideration. Will include an agenda item title "Future Planning" during which
Page 3 of 4
57
ERMU Commission Policy—G.2c Agenda Planning
time any Commissioner or the General Manager may discuss and suggest items
for placement on future meeting agendas. This agenda category will also include
the item"Other Business"to provide additional flexibility for discussion of
matters not specifically contemplated in advance or for agenda items that do not
required Commission action and do not conform to any of the predetermined
categories.
f. 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.
g. 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.
POLICY HISTORY:
Adopted May 9, 2017
Revised December 11. 2018
Page 4 of 4
58
Elk River
Municipal Utilities 2019 GOVERNANCE AGENDA
Tuesday, January 8: Tuesday, February 12:
• Annual Review of Committee Charters • Review Strategic Plan and 2018 Annual
Business Plan results
Tuesday, March 12: Tuesday, April 9:
• Oath of Office • Annual Commissioner Orientation and Review
• Election of Officers Governance Responsibilities and Role
• Audit of 2018 Financial Report
• Financial Reserves Allocations
• Review 2018 Performance Metrics
Tuesday,May 14: Tuesday,June 11:
• Annual General Manager Performance •
Evaluation and Goal Setting
Tuesday, July 12: Tuesday,August 13:
• Annual Commission Performance Evaluation • Annual Business Plan—Review Proposed 2020
• Review and Update Strategic Plan Travel, Training, Dues, Subscriptions, and Fees
Budget
Tuesday, September 10: Tuesday, October 8:
• Annual Business Plan—Review Proposed 2020 • Annual Business Plan—Review Proposed 2020
Capital Projects Budget Expenses Budget
Tuesday,November 12: Tuesday, December 10:
• Annual Business Plan- Review Proposed 2020 • Adopt 2020 Official Depository,Newspaper,
Rates and Other Revenue and Regular Meeting Schedule
• Adopt 2020 Fee Schedule • Adopt 2020 Governance Agenda
• 2020 Stakeholder Communication Plan • Adopt 2020 Annual Business Plan
59