4.1 ERMUSR 08-13-2019Elk River
Municipal Utilities
UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Employee Recognition Workgroup
MEETING DATE: AGENDA ITEM NUMBER:
August 13, 2019 4.1
SUBJECT:
Employee Recognition Workgroup Update
ACTION REQUESTED:
Direction on the Employee Recognition Program
BACKGROUND:
As a result of feedback on the Organizational Effectiveness Survey conducted in early 2019, an
Employee Recognition Workgroup was formed to address recognition within the company. The
committee consists of two managers and one employee from each department. The
Workgroup understood that recognition comes in all forms: performance based, from
supervisor to employee, peer to peer, employee anniversaries and milestones, etc. The
following is the scope that was identified for this workgroup:
• Review policy and legal restrictions related to public expenditures
• Discuss department perspectives on employee recognition
• Develop priorities and opportunities for improvements in employee recognition
• Discuss consistency requirements for program application for all departments
• Develop criteria to quantify and measure employee performance
• Develop employee recognition programs
• Discuss process for budgeting, Wage & Benefits Committee review, and commission
approval
• Establish workgroup's implementation and oversight process
• Annually review employee recognition programs, their success and delivered value
It is also understood by the Workgroup that proposed recognition initiatives that have a
financial or benefits impact would need to go through the budgeting process and require
commission approval.
DISCUSSION:
The Workgroup first met in July. To the members of the group, the idea of recognition that
would work for all departments, where everyone could be held to the same measurement
guidelines, was a daunting task. Every member had a different idea of the wide range of options
that could be presented and what the definition of recognition is. Some of the ideas discussed
during the Workgroup's initial brainstorming were outside this Workgroup's scope and more
appropriate for the Wage & Benefits Committee such as: change in work week to four 10 -hour
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days, more vacation time, flexible work hours, etc. The Workgroup had to establish a focus on
recognition within the scope of the initiative in order to be productive. After two meetings, the
group started concentrating on a program that positively affects everyone within the company,
while using a universal measurement: the employee anniversaries recognition program.
ERMU's Public Purpose Expenditure Policy highlights the different anniversaries that are
recognized and what that recognition is. Currently, employees receive plaques at 5 and 10 years
of service. At 20 years, employees would receive a jacket, and at 30 years, they would receive a
watch. Workgroup members received feedback from employees throughout the company that
the plaques were difficult to display for those that do not have a cubicle or office. With that in
mind, the members brainstormed different ways to recognize employees for hitting milestones.
Ideas ranged from setting a dollar amount for each milestone and allowing employees to
choose an item such as a branded sweatshirt, engraved Yeti cup, etc., to awarding a PTO day
that must be used within that milestone year.
A downfall of the item suggestion is that each item would be considered taxable to the
employee. The PTO day option has two benefits: it rewards those who have stayed with the
company long enough to be able to hit these milestones and entices others to stay longer.
Members of the group have received significant feedback that there are retention issues
between 1 and 5 years of employment. We pulled some data on employee turnover and of
those who have quit over the last 10 years (not including retirements or terminations), 13 of 19
employees have left within 1-4 years of employment.
The Workgroup also looked at more nominal ways to increase employee recognition within the
company such as: having a "Welcome Bandwagon" so new employees can get to know all of
the different departments, announcing everyone's anniversary date on that day/sending a card
thanking the employee for being here, having an opt -in option for employees throughout the
company to celebrate birthdays together, etc.
The Workgroup is looking for direction from the Commission on an avenue to pursue. The
Workgroup will then put together a more specific plan and present it to the Commission at a
later meeting.
ATTACHMENTS:
• ERMU Policy—A.19—Public Purchase Expenditure Policy — For Reference Only
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.1,
Elk River
Municipal Utilities
A.19 — Public Purpose Expenditure Policy
I.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.
De inition: 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.
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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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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
M
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.
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
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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