4.3. ERMUSR 07/09/2019 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Theresa Slominski — Finance & Office Manager
MEETING DATE: AGENDA ITEM NUMBER:
July 9, 2019 4.3
SUBJECT:
Use and Disposal of Utility Property Policy
ACTION REQUESTED:
Approve the revised Use and Disposal of Utility Property Policy
BACKGROUND:
We have a well-defined policy for disposal of equipment once it is no longer of value to ERMU.
The policy allows for items to go to auction or, in some circumstances, be made available to the
general public. The intent of the policy was to create transparency when items are disposed of,
and when made available to the general public that employees are included in the category of
the general public.
DISCUSSION:
The current Use and Disposal of Utility Property Policy allows for items are to be disposed of
when they are no longer of value to ERMU but does not take into account potential donation of
those items to another entity. ERMU is a member of Minnesota Municipal Utilities Association
(MMUA) and regularly sends employees to their training facility in Marshall, Minnesota. This
training facility, as well as other trade schools, could utilize some of our discarded equipment
for training purposes.This would benefit our utility as well as other participating MMUA
members in the state. We would like to amend the policy to allow for donation options, with
the intent to be transparent.
Attached for reference is the proposed revision to the Use and Disposal of Utility Property
Policy.
FINANCIAL IMPACT:
None
ATTACHMENTS:
• Revised—ERMU Policy—P.15—Use and Disposal of Utility Property
Page 1 of 1
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Elk River
Municipal Utilities
P.15—Use and Disposal of Utility Property
1.0 Personal Use
All Utility property and equipment is publicly owned. Utility-owned equipment and facilities are
not available for personal use by employees except as explicitly authorized in this or other Utility
policies. Personal use of all Utility vehicles, machinery, tools, and other equipment is strictly
prohibited.
2.0 Disposal
From time to time, Utility property becomes obsolete, is damaged, or is not needed. Such
equipment will be disposed of by the Utility through salvage, trade, negotiated sale, or public
auction. If it is determined that a sale or auction is the best way to dispose of property, a notice
must be advertised in the official newspaper and/or the Utilities website and will be posted at the
Utilities office as set forth below. The appropriate department head will determine the minimum
price for each item to be sold.
• In no instance will anything of value within the scope of this policy (i.e.,
Utility property that becomes obsolete, damaged, or unnecessary) be given
away free to anyone including employees;
• Except that in the case of used and unwanted utility poles, cross arms,
wood chips, wood cable reels, or other items where there is a disposal
cost, the Utility may in its discretion offer such items to the general public
for a nominal price or at no charge, and nothing in this policy shall be
interpreted to prohibit employees from accessing any such offer on the
same terms and to the same extent as the general public;
• Except that in the case of used and unwanted utility poles, other
infrastructure materials such as reclosers or fuses, meters, etc., the Utility
may in its discretion donate the items to training facilities, such as
Minnesota Municipal Utilities Association Training Center or other trade
schools.
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• Excess Utility property determined to have a value of$5,000 or less, may be
disposed of by negotiated sale after posting a request for offers on the Utilities
website and at the Utilities office for a least 5 business days.
• An employee may purchase no more than one motor vehicle from the Utility
or another Elk River political subdivision in any 12 month period.
• Employees involved in the auction or process pertaining to the administration
and collection of sealed bids, or negotiating trade values are prohibited from
purchasing Utility property.
Unauthorized removal of Utility property or its conversion to personal use may result in
discipline up to and including termination.
3.0 Use of Utility Vehicles
Utility-owned vehicles are to be used only by Utility employees for official Utility business.
Employees who drive or may be required to drive Utility vehicles and equipment are responsible
for maintaining a safe driving record and for observing all traffic laws. Seat belts must be
properly used at all times. Drivers must carry a current, valid driver's license that is adequate for
the type of vehicle being driven. Any employee who operates a Utility vehicle without a valid
driver's license will be subject to disciplinary action up to and including termination.
Passengers may be carried only when necessary to conduct Utility business and/or when their
transportation via Utility vehicle is in the best interests of the Utility. Utility vehicles may not be
used to travel from work to an employee's residence for rest or lunch breaks without prior Utility
approval. Utility employees conducting official Utility business out of town (conventions,
meetings, etc.) maycarryfamilymembers as passengers if such accompaniment does not
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interfere with the best interests of the Utility and it has been approved by their department head.
Adopted December 22, 2009
Revised November 15, 2011
Revised February 9, 2016
Proposed revision July 9, 2019
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