4.1 ERMUSR 01-14-2020
UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Troy Adams, P.E. General Manager
MEETING DATE: AGENDA ITEM NUMBER:
January 14, 2020 4.1
SUBJECT:
Annual Review of Committee Charters
ACTION REQUESTED:
No action required.
BACKGROUND:
In August 2017, the commission adopted a comprehensive manual of governance policies
based on the Carver Model of governance. Included in those governance policies is DƚǝĻƩƓğƓĭĻ
tƚƌźĭǤ D͵Ћŭ /ƚƒƒźƭƭźƚƓ /ƚƒƒźƷƷĻĻƭͲ which is attached for reference. This policy notes in
statement #5 that The Commission will review the committee charter and performance of any
standing committee at least annually to determine if changes are required or if the committee
DISCUSSION:
The annual review of the committee charters is an opportunity for the commission to review
the purpose for the committees and whether or not they are still needed. This also is an
opportunity for the commission to give direction to the committees. The schedule of this
annual review is intentionally prior to March when the commission appoints committee
members.
There are currently three commission-created committees: the Wage & Benefits Committee,
Financial Reserves & Investment Committee, and the Information Security Committee. These
three committee charters are attached for review and discussion.
ATTACHMENT:
Governance Policy - G.2g - Commission Committees
Governance Policy - G.2g1 - Wage & Benefits Committee Charter
Governance Policy - G.2g2 - Financial Reserves & Investment Committee Charter
Governance Policy - G.2g3 - Information Security Committee Charter
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COMMISSION POLICY
Section:Category:
GovernanceGovernance Policies
Policy Reference:Policy Title:
G.2gCommission Committees
PURPOSE:
With this policy, the Commission establishes and communicates its purposes and the means by
which it creates and empowers committees to assist the Commission in its work. This policy
applies to any group formed by Commission action, whether or not it is called a committee and
whether or not the group includes Commission members. It does not apply to committees formed
under the authority of the General Manager.
POLICY:
Commission committees, when created, will be used to reinforce the wholeness of the
Commission and never to interfere with the delegation of authority from the Commission to the
General Manager or to any officer of the Commission. Commission committees will not have
direct involvement with current management and staff employee functions.
Consistent with this general statement:
1.The Commission will use committees sparingly and only for as long as required to
accomplish its purposes. Committees may be appropriate in circumstances where the
Commission recognizes the need for more in-depth review of information and issues, and
where a committee is the best way to make effective and efficient use of available
Commission member expertise and time. Committees may also be appropriate where it is
necessary or desirable for the Commission to visibly demonstrate regulatory compliance or
accountability to its stakeholders (e.g. Financial Reserves and Investments Committee).
2.Committees ordinarily will assist the Commission in the following specific ways by:
a.Monitoring organization performance metrics and related information;
b.Preparing policy alternatives and their implications for Commission deliberation and
action;
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ERMU Commission Policy G.2g Commission Committees
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c. Determining the level of compliance with existing Commission policies and evaluating
the results of policy compliance or non-compliance.
3. When the Commission creates a committee, it will develop and approve by resolution a
written committee charter that sets forth the purposes, duration, expected outcomes,
leadership, membership, delegated authority, available resources, and other information
needed for the committee to function successfully. The General Manager will designate
management/staff committee members if so requested. The Commission, by majority vote,
will appoint Commission members to committees and remove or replace them, as
appropriate. The Commission, by majority vote, will also appoint, remove, and replace a
Committee Chair, Vice-Chair and any other positions of leadership that the Commission
determines appropriate.
4. The Commission recognizes that appointments to a Committee provide opportunities for
learning and Governance development. Accordingly, the Commission endeavors to appoint
Commission members to committee leadership positions who do not already hold a
Commission office.
5. The Commission will review the committee charter and performance of any standing
committee at least annually to determine if changes are required or if the committee is still
required.
6. Commission committees may not convene a meeting that includes a quorum of the
Commission.
7. Commission committees may not speak or act for the Commission except when formally
given such authority for specific and time-limited purposes. Expectations and authorities will
be carefully stated in order not to conflict with authority delegated to the General Manager or
Commission Chair.
8. Commission committees may not exercise authority over management and staff employees.
The General Manager is accountable to the whole Commission and is not required to obtain
approval of any Commission committee before taking an executive action.
9. Commission committees will avoid relating to or identifying with discrete parts of the
organization rather than the whole. A Commission committee that has helped the
Commission create policy on a particular subject will not be used to monitor organizational
performance on that same subject, except with specific Commission approval.
POLICY HISTORY:
Adopted May 9, 2017
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COMMISSION POLICY
Section:Category:
GovernanceGovernance Policies
Policy Reference:Policy Title:
G.2g1Wage & Benefits CommitteeCharter
PURPOSE:
The Wage and Benefits Committee exists to help the Commission develop and maintain a pay
plan structure and benefits package that are market competitive, help promote employee
retention, and to help the Commission make informed decisions which provide value to the
customers through fair labor expenses. This Committee also exists to help the Commission with
succession planning and review pay equity compliance.
MEMBERSHIP:
The Committee shall be comprised of two Commissioners, the General Manager, an
administrative manager, and a field service superintendent. At no time shall there be a quorum of
the Commission on the Committee.
The Commission shall appoint Committee members annually following the Commission election
of officers during the March Regular Commission meeting. The Commission shall also appoint
the Committee Chair at that time.
ROLE OF THE COMMITTEE CHAIR:
The primary role of the Committee Chair is to run the Committee meetings. The Committee will
adhere to the Current edition of for all situations to
which they are applicable and are not inconsis
special rules of order that the Commission may adopt. The Committee meetings may be open or
closed to employees at the discretion of the Committee Chair.
AUTHORITY:
Except as established in this Committee Charter, the authority of the Committee is limited to the
purpose of research and recommendation to the Commission. The Committee, at the discretion
and through formal action of the Commission, may be empowered beyond the role of research
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ERMU Commission Policy G.2g1Wage & Benefits Committee Charter
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and recommendation such that it is consistent with the Organizational Core Purposepolicies
and the Commission Committeespolicy.
SPECIFIC DUTIES:
1. At the request of the Commission, research and analyze topics related to employee
compensation and benefits.
2. Annually perform market benchmarking and evaluate wages. The Committee shall present
options and make recommendations regarding cost of living adjustments and pay plan
structure modifications to the Commission for their consideration.
3. Review insurance policies and evaluate policy renewals related to employee benefit
insurances.The Committee shall present options and make recommendations regarding these
insurance policies to the Commission for their consideration.
4. Evaluate wage and benefit requests from employees.Present and make recommendations to
the Commission as appropriate.
5. Review submittal information pertaining to pay equity compliance requirements and present
options and make recommendations to the Commission as appropriate.
6. Record minutes of Committee meetings. Committee meeting minutes shall be subject to
applicable data retention law and policies.
SCHEDULE:
At a minimum, the Committee shall meet on a quarterly basis.
TERMINATION:
The Committee shall exist until at such time formal action of the Commission is taken to
dissolve the Committee.
POLICY HISTORY:
Adopted May 9, 2017
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COMMISSION POLICY
Section:Category:
GovernanceGovernance Policies
Policy Reference:Policy Title:
Financial Reserves&Investment
G.2g2
CommitteeCharter
PURPOSE:
The Financial Reserves & Investment Committee exists to help the Commission develop and
maintain industry appropriate financial reserves and investment policies.
MEMBERSHIP:
The Committee shall be comprised of two Commissioners, the General Manager, and the
Finance & Office Manager. At no time shall there be a quorum of the Commission on the
Committee.
The Commission shall appoint Committee members annually following the Commission election
of officers during the March Regular Commission meeting. The Commission shall also appoint
the Committee Chair at that time.
ROLE OF THE COMMITTEE CHAIR:
The primary role of the Committee Chair is to run the Committee meetings. The Committee will
adhere to the Current edition of for all situations to
which they are applicable and are not inconsistent wit
special rules of order that the Commission may adopt. The Committee meetings may be open or
closed to employees at the discretion of the Committee Chair.
AUTHORITY:
Except as established in this Committee Charter, the authority of the Committee is limited to the
purpose of research and recommendation to the Commission. The Committee, at the discretion
and through formal action of the Commission, may be empowered beyond the role of research
and recommendation such that it is consistent with the Organizational Core Purposepolicies
and the Commission Committeespolicy.
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ERMU Commission Policy G.2g2Financial Reserves & Investment Committee Charter
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SPECIFIC DUTIES:
1. At the request of the Commission, research and analyze topics related to financial reserves
and investments.
2. On a periodic basis, the Committee will review the investment balances and the various
investment instruments for return, liquidity, and diversification. The Committee may present
options and make recommendations to the Commission for their consideration.
3. Annually, when the Commission designates the official depository for the year, it should
provide for the Finance & Office Manager to recommend that additional depositories be
designated for the purpose of investing funds.
4. On behalf of the Commission and Committee, new Investments will be authorized by the
Finance & Office Manager, with the funds actually being transferred via a check produced by
the A/P Specialist, and recorded in the check register detail presented at the regular
Commission meetings. Investments that mature shall be reinvested by the Finance & Office
Manager. All investing will be transacted working with the investment firm(s) or bank(s) for
the best rate of return within the constraints of the ERMU Investment Policy. In the event
that the Finance & Office Manager is unable to conduct the above investment
responsibilities, the General Manager has the authority to act in his/her absence.
5. On a periodic basis, the Committee will review the Financial Reserves Policy and reserve
balances. The Committee may present options and make recommendations regarding
modification of the Financial Reserves Policy to the Commission for their consideration.
SCHEDULE:
At a minimum, the Committee shall meet on anannual basis.
TERMINATION:
The Committee shall exist until at such time formal action of the Commission is taken to
dissolve the Committee.
POLICY HISTORY:
Adopted May 9, 2017
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MANAGEMENT POLICY
Section:Category:
Management Administration Policies
Policy Reference:Policy Title:
A.24aInformation SecurityCommitteeCharter
PURPOSE:
Information security is managing risks to the confidentiality, integrity, and availability of
information using administrative, physical, and technical controls.
The Information Security Committee exists to help develop and maintain industry appropriate
information security policies and oversight. Because of shared hardware and resources,there
exists an overlap and shared risk for ERMU and the City of Elk River operations. So although
governed autonomously, this shall be an advisory Committee to both the ERMUand the City
of Elk River
MEMBERSHIP:
This Committee shall be comprised of equal representation from ERMU and the City. From
ERMU this committee shall include: a Commissioner, the General Manager, the field manager,
an administrative manager, and aninformation technology employee. From the City this
committee shall include: a Councilmember, the City Administrator, a field manager, an
administrative manager, and an information technology employee. At no time shall there be a
quorum of the Commission or the Council on the Committee.
The Commission shall appoint Committee member representatives annually following
the Commission election of officers during the March Regular Commission meeting. The
The Committee shall elect a
chair annually. The General Manager and the City Administrator shall serve as the authorized
reporting representatives for their respective governing bodies.
ROLE OF THE COMMITTEE CHAIR:
The primary role of the Committee Chair is to run the Committee meetings and act as committee
secretary. The Committee will adhere to the Current edition of
Revised
bylaws, policies, and any special rules of order that the Commission may adopt; and similarly,
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ERMU Management Policy A.24a Information Security Committee Charter
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the Committee action shall not be inconsistent with applicable laws and policies which regulate
the City of Elk River. The Committee meetings may be open or closed to employees at the
discretion of the Committee Chair.
AUTHORITY:
Except as established in this Committee Charter, the authority of the Committee is limited to the
purpose of research and recommendation to ERMU and City leadership teams.
SPECIFIC DUTIES:
1. Policies and Procedures:Assist ERMU and City leadership in the development of
information security related policies.Review effectiveness of information security policy
implementations. Identify and recommend how to handle non-compliance. Assist with the
development of information security related procedures, standards, guidelines, and baselines
to the ERMU and City leadership teams. At least annually, provide timely reports including
recommendations regarding effectiveness of polices and procedures to ERMU and City
leadership teams.
2. Risk Assessment:Review industry appropriate information security trends to maintain an up-
to-
Identify significant threats and vulnerabilities. Assess the adequacy and coordination of the
implementation of information security controls. Recommend methodologies and processes
for information security. Evaluate ongoing related legal and regulatory compliance changes.
Review incident information and recommend follow-up actions. At least annually, provide
timely reports including recommendation regarding risks assessment to ERMU and City
leadership teams.
3. Budget Development:Develop data needed for thorough evaluation of proposed information
security initiatives for budget preparation and consideration. Information shall include
options, risk evaluation, resource requirements, implementation timelines, and costs. At least
annually and coordinating with their respective budgeting process schedules, provide timely
reports regarding information security initiatives proposed for consideration to ERMU and
City leadership teams.
4. Education and Awareness:Function as an information security program champion providing
roved security
initiatives and policies. Develop and implement plans and programs to maintain information
security awareness. Promote information security education, training, and awareness
throughout ERMU and the City.
SCHEDULE:
At a minimum, the Committee shall meet on an annual basis.
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ERMU Management Policy A.24a Information Security Committee Charter
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TERMINATION:
The Committee shall exist as a joint effort between ERMU and the City until at such time either
the General Manager or the City Administrator dissolve the joint nature of the Committee.
POLICY HISTORY:
Established August 8, 2017
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