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4.2 ERMUSR 08-13-2019Elk River Municipal Util'ties UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Troy Adams, P. E. —General Manager MEETING DATE: AGENDA ITEM NUMBER: August 13, 2019 4.2 SUBJECT: Policy Manual Initiative Implementation Overview ACTION REQUESTED: None BACKGROUND: In 2017, the commission worked with staff and a consulting firm to develop governance polices based on the Carver Model governance style. The previous polices were left in place redundant with the new policies. An initiative was created to develop a migration plan for relevant old policies to become part of the new policy manual, confirm delegation of authority to management for old policies that are not governance, and to eliminate or remove documents that are not policy. DISCUSSION: Now that staff and the commission have had a full calendar year of operations and governance under the new commission policies, staff has reviewed the old policies. And, a plan has been developed to systematically work through the old policies. The big picture plan is to: • Split into two policy books: commission and management. The intent is to separate things that are clearly operational/procedural from things that are clearly policy/governance. The items that are blended would need to be rewritten to separate between commission and management. • Work with legal counsel; bring back to commission for action. • The goal is to complete this process by early 2020. Staff would bring back multiple items for commission action every month until the initiative is complete. A color coded overview of the implementation plan is attached. ATTACHMENT: • Commission Policy Manual and Management Policy Manual Implementation Overview Page 1 of 1 67 Elk River Municipal Utilities Implementation Key -Delete Flimepatp Move Policy - Tand-Itone Polis RC-ITwvv-: Not Needed - Remove COMMISSION POLICY MANUAL AND MANAGEMENT POLICY MANUAL IMPLEMENTATION OVERVIEW August 2019 GOVERNANCE Authority and Purpose Policies G. la Bylaws G.1b Organizational Core Purpose G.1c Mission Statement G.1d Vision Statement G.1e Organizational Values G. If Organizational Fundamentals G. Ig Planning Themes Governance Policies G.2 Commission Purpose G.2a Commission - City Council Relationship and Roles G.2a1 Payment in Lieu of Taxes (PILOT) and Other Donations to the City of Elk River (Moved from A.17) Aft to, &vr-tkjn G.2a2 Street Light Installation and Maintenance - Memorandum of Understanding (Moved from E.10) G.2a3 Payment of Private Water Line Connection and Repair Costs - Memorandum of Understanding (Moved from W.6) G.2b Governing Style G.2c Agenda Planning G.2d Commission Member Role, Responsibilities and Orientation G.2e Commission Member Conduct G.2e1 Conflicts of Interest (Moved from P.5) G.2f Commission Officer Roles, Responsibilities and Succession G.2g Commission Committees G.2g1 Wage & Benefits Committee Charter G.2g2 Financial Reserves and Investment Committee Charter G.2g3 Information Security Committee Charter (A.24a) Page 1 of 6 ERMU Commission Policy Manual Table of Contents G.2h Independent Advisors to the Commission Commission — Management Connection Policies G.3 Commission - Management Roles G.3a Controlling Authority G.3b Delegation of Authority to the General Manager G.3c General Manager Accountability G.3d Monitoring Performance of the General Manager G.3e General Manager Performance Planning and Evaluation Delegation to Management Policies G.4 Corporate Limitations G.4a Succession of Leadership G.4b Information and Support to the Commission G.4c Strategic and Business Planning G.4d Customer Interests G.4d1 Customer Data Privacy4294ey (Moved from A.18) G.4e Core Customer Services G.4e1 Service Policies (Moved from A.1) G.4f Employee Interests G.01 ERMU Employee Handbook (Moved from P.1) G.02 Controlled Substances Pp.�g-Policy (Moved from P.6) G.4f3 Wad and Tablet Device Guidelines (Moved from P.12) G.4g Organization, Staffing, and Compensation G.4g1 Performance Metrics and Incentive Compensation R44c-y (Moved from P.13) G.4g1a Performance Metrics and Incentive Compensation Score Card (Moved from P.13a) G.4h Financial Planning and Budgeting G.4i Financial Condition and Transactions G.4i1 Investments G.4i2 Financial Reserves G.4i3 Debt Issuance and Payment G.4i4 Procurement G.4i4 Purchase Orders Relicy(Moved from A.20) G.4i5 Public Purpose Expenditures y (Moved from A.19) Page 2 of 6 *8 ERMU Commission Policy Manual Table of Contents G.4j Cost Allocation and Recovery G.4j1 Rates and Charges for Electric Service G.4j2 Rates and Charges for Water Service G.4j3 Customer Deposits Pokey`(Moved from A.6) G.4k MMPA Relationship, Representative and Governance G.41 Protection of Assets G.411 Use and Disposal of Utility Property (Moved from P.15) G.412 Inventory °(Moved from P.11) G.4m Corporate Risk Management G.4n Legal and Regulatory Compliance G.4o Environmental Stewardship G.4o1 Water Use Restrictions (Moved from W.9) G.4p External Communications G.4q Community Involvement G.4r Mutual Aid Policy (Moved from E.5) Results Policies G.5 Goals and Results Page 3 of 6 70 ERMU Commission Policy Manual Table of Contents 1.18 RGSi .1:} conq Dispersed Generation Program 5 14 Tenlp(xar), Fectr!c 5erv:ce AgreerpeJA S. IS ''N tef Curing[ lan Pernllt PA G.;+er;a fGF Glething Repla,.,,., eRt (Include in Employee Handbook) r g CRAflir+, .,f Wores+ Pelir;w (Moved to G.2e1) P CR-DFugPolicSestiens Ing (Move to G.4f2) Gd-, � tieRal AssistaRr.e-Remy (Duplicate, also in Handbook} P 10 W,,..,.,,, r,,.,,nu +oro,,:,, . (Include in Employee Handbook) PAI Inver+„r., Pali.. , (nn.,yed to Q412) P42 iPadI and- Tah:et Peviee G61ide:iRes (Moved to G.02) P43 PeFfeFFAaRee MetFirs and lReelptive r,.., .meatier Peri,.,, (Moved to G.4g1) Page 4 of 6 71 ERMU Commission Policy Manual Table of Contents D 13a ❑ f_ _n MetF _s and Inre+n+i,_o Cemn^nsati^^ k,._ ^ Card (Moved to G.4g1a) 1 SeFViees D.,Iiei^e (Moved to G.4e1) � -P olaeehe.lde,r (Redundant, Included in A.17) A. c G+Istem^r ne pe si+ Poky (Move to G.4j3) r I 1 �'; T r_pr 13:0. A i y acquisition.) 1if ,:Eli r31:'.'.'�'.c•I'li�fli.l A. 1:7 rayrtcr+''nrr'rcavrfTaxes -(-PIrcQT-) and OtteD v i a+•i v i S c o c h c c�+y ...f. -CI.L..Wye.-F (Moved to G.2a) A 1$ PFiVaGy D.,riG., (Moved to G.4d1) A.19 D..hlie PuFlaese Cvnnndi+„re, Pokey (Moved to G.4i5) A.29 D„r„hase QFd Peliey (Moved to G.44) Az2 Retu med WR Paid Items s y (Redundant, Incorporate into A.1) 24 flA-.Rage Rt Gemmitteee• De.l-iey (+^ he developed), r . 2—ri-SeGUrity Cvmrm•++c c rh a Fc c r(Moved to G.2g3) Sections will be cut and included in new commission policy G.4e1 Page 5 of 6 72 ERMU Commission Policy Manual Table of Contents E.5 Mutual Aid P94W (Moved to C.4r) Included inPAS) E.7 al Po4ef-(Redunclant, F'ONE&M (Move to G.2a2) � o,7prr'x/o»ann'noworPj-od:ronn E. -- c^ P�"unL-J| w Sections will becut and included innew commis ok»npolicy G4el Mpmor I.A 1. 6- -h Payment and Assessme-At of the Costs te RepaiF Private Utility Liges W.9 Water Use Restrictions (Moved to G.4ol) Page 6 of 6 73 M