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4.3. ERMUSR 10-8-2019 Ji Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Employee Recognition Workgroup MEETING DATE: AGENDA ITEM NUMBER: October 8, 2019 4.3 SUBJECT: Employee Recognition Workgroup Update ACTION REQUESTED: Commission direction on the Years of Service Award Plan BACKGROUND: As a result of feedback from 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. The Workgroup has narrowed the focus to revamping the employee years-of-service awards. Currently, employees receive a plaque at 5 and 10 years, a jacket at 20 years and a watch at 30 years of service. The Workgroup has received feedback from employees that instead of a plaque, they would like an item that they are able to use to recognize their years of service. At the August commission meeting, the Workgroup presented a few different ways to accomplish that. The commission directed the Workgroup to come back with a more specific plan this month. Page 1 of 2 222 DISCUSSION: Similar to what the City of Elk River does for some of their service awards, the Workgroup focused on a dollar amount to be spent for each anniversary. We started from the top at 35 years and set that at the same dollar amount the City of Elk River uses as their top tier. We worked our way down from there. The following are the anniversary dates and associated dollar amounts we are proposing: • 1 Year: Refreshments for milestone employee and coworkers • 3 Years: $20 gift • 5 Years: $25 gift • 10 Years: $40 gift • 15 Years: $50 gift • 20 Years: $75 gift • 25 Years: $100 gift • 30 Years: $150 gift • 35 Years: $175 gift The Workgroup has worked with local vendors who have agreed to put together a "catalog" of items for employees to choose from within their anniversary amount. The item (if possible) would be engraved or embroidered with the employee's name and anniversary year. On an annual basis during the budgeting season, the Workgroup will review all upcoming anniversaries and the dollar amounts being used for each anniversary to determine the budgetary impact.This will be listed as a line item within the expense budget for the commission to review. With the employees we currently have, the proposed changes to the employee years-of-service awards program would have a $400 impact to the 2020 budget. If the commission supports the proposed Years of Service Award Plan as outlined above, the Public Purchase Expenditure Policy will be updated to reflect the change, and brought back for commission approval in November, to be effective in 2020. ATTACHMENTS: • ERMU Policy—A.19—Public Purchase Expenditure Policy— For Reference Only Page 2 of 2 223 // Elk River Municipal Utilities A.19—Public Purpose Expenditure Policy 1.0 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. Definition: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. 224 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 2 225 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 3 226 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 4 227 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 5 228 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 6 229