2.4. ERMUSR 07/09/2019 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Michelle Canterbury—Executive Administrative Assistant
MEETING DATE: AGENDA ITEM NUMBER:
July 9, 2019 2.4
SUBJECT:
Procurement Policy
ACTION REQUESTED:
Approve the revised Procurement Policy.
BACKGROUND:
On December 12, 2017, the Commission adopted a Governance Policy on Procurement.The
policy, which sets forth its expectations for the General Manager concerning procurement of
supplies and services for ERMU, requires that management policies, procedures, and practices
for procurement are consistent with the most current version of or successor to Minnesota
Statute 471.345 Uniform Municipal Contracting Law.
DISCUSSION:
Since the adoption of the policy, the State Statute has increased the$100,000 threshold, which
is outlined in the governance procurement policy, from $100,000 to $175,000. At the May 12,
2019 Commission meeting, the Commission discussed updating the governance policy to reflect
the change, and expressed an interest in doing so.
For ease of not having to make any future changes to the dollar thresholds, staff initially
planned to revise the policy in such a way that the dollar amounts would not be included in the
policy. But after further consideration, staff determined that for the sake of transparency and
clarity, the dollar amounts should be included. Also, as any future changes to the State Statue
thresholds would have a reporting requirement to the Commission, it makes sense to bring the
policy back and make the updates at that time. The redlined copy of the policy is attached for
review.
FINANCIAL IMPACT:
None
ATTACHMENTS:
• Revised - ERMU Policy—G.4i4—Procurement Policy
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Elk River
Municipal Utilities COMMISSION POLICY
Section: Category:
Governance Delegation to Management Policies
Policy Reference: Policy Title:
G.4i4 Procurement
PURPOSE:
With this policy,the Commission sets forth its expectations for the General Manager concerning
procurement of supplies and services for ERMU.
POLICY:
The General Manager shall establish management policies,procedures, and practices for
procurement that are consistent with the requirements of the most current version of or successor to
Minnesota Statute 471.345 Uniform Municipal Contracting Law, and which implement and comply
with the following:
1. Contracts for procurement which are estimated to exceed$17540,000 in value shall be presented
to the Commission for specific approval.
12. Contracts for procurement with a value of less than$17500,000 do not require specific
Commission approval,but the General Manager shall report on the procurement to the
Commission at the next regular Commission meeting if the contract amount exceeds$25,000
and the item has not been previously approved by the Commission as part of the Business
Plan/Budget.
3. Contracts for procurement with a value of less than$25,000 may be entered into by the General
Manager or his/her designee without approval or reporting to the Commission,but shall be
reflected in ERMU's financial records.
In addition,the General Manager shall:
1. Designate specific delegated procurement authorities for selected ERMU managers and
employees,by position title,based on type of procurement,dollar value, or other appropriate
criteria.
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ERMU CommissionManagement Policy—G.4i.4 Procurement Policy
2. Keep complete and accurate records of all procurement contracts demonstrating compliance
with applicable legal and regulatory requirements,this Commission policy, and established
management policies,procedures and practices.
3. Inform the Commission, as soon as practical after discovery, of any material violations of this
policy,Minnesota law, or the conditions of a Commission contract approval.
POLICY HISTORY:
Adopted December 12, 2017
Revised July 9, 2019
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