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3.0 ERMUSR 03-10-2020 Tuesday, January 14: • Annual Review of Committee Charters Tuesday, February 11: • Review Strategic Plan and 2019 Annual Business Plan results Tuesday, March 10: • Oath of Office • Election of Officers • Annual Commissioner Orientation and Review Governance Responsibilities and Role Tuesday, April 14: • Audit of 2019 Financial Report • Financial Reserves Allocations • Review 2019 Performance Metrics Tuesday, May 12: • Annual General Manager Performance Evaluation and Goal Setting Tuesday, June 9: • Tuesday, July 14: • Annual Commission Performance Evaluation • Review and Update Strategic Plan Tuesday, August 11: • Annual Business Plan – Review Proposed 2021 Travel, Training, Dues, Subscriptions, and Fees Budget Tuesday, September 8: • Annual Business Plan – Review Proposed 2021 Capital Projects Budget Tuesday, October 13: • Annual Business Plan – Review Proposed 2021 Expenses Budget Tuesday, November 10: • Annual Business Plan - Review Proposed 2021 Rates and Other Revenue • Adopt 2021 Fee Schedule • 2021 Stakeholder Communication Plan Tuesday, December 8: • Adopt 2021 Official Depository, Newspaper, and Regular Meeting Schedule • Adopt 2021 Governance Agenda • Adopt 2021 Annual Business Plan 2020 GOVERNANCE AGENDA 5 COMMISSION POLICY MANUAL 6 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY MANUAL TABLE OF CONTENTS GOVERNANCE Authority and Purpose Policies G.1a Bylaws G.1b Organizational Core Purpose G.1c Mission Statement G.1d Vision Statement G.1e Organizational Values G.1f Organizational Fundamentals G.1g 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 G.2a2 Street Light Installation and Maintenance – Memorandum of Understanding G.2a3 Repairs to Private Water Utility Line – Memorandum of Understanding 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 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 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 7 ERMU Commission Policy Manual Table of Contents ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 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 Privacy G.4e Core Customer Services G.4f Employee Interests G.4f1 Employee Handbook G.4f2 Controlled Substances G.4g Organization, Staffing, and Compensation G.4g1 Performance Metrics and Incentive Compensation G.4g1a Performance Metrics and Incentive Compensation Policy Score Card 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.4i5 Purchase Orders G.4i6 Public Purpose Expenditures 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 G.4k MMPA Relationship, Representative and Governance G.4l Protection of Assets G.4l1 Use and Disposal of Utility Property G.4l2 Inventory G.4l3 Mobile Device Guidelines G.4m Corporate Risk Management G.4n Legal and Regulatory Compliance G.4o Environmental Stewardship G.4o1 Water Use Restrictions G.4p External Communications G.4q Community Involvement G.4r Mutual Aid Results Policies G.5 Goals and Results 8 ______________________________________________________________________________ Page 1 of 4 COMMISSION POLICY Section: Category: Governance Authorities and Purpose Policies Policy Reference: Policy Title: G.1a Bylaws ARTICLE I – AUTHORITY Section 1. The Village of Elk River Water, Light, Power and Building Commission was created on July 11, 1947, by resolution adopted by the Village of Elk River Trustees. Section 2. Pursuant to Minnesota Statutes, Section 412.331, adopted in 1949, any water, light, power and building commission then in existence was required to thereafter operate as a public utilities commission under Minnesota Statutes, Sections 412.321 to 412.391. The Village of Elk River Water, Light, Power and Building Commission became Elk River Municipal Utilities. Section 3. Elk River Municipal Utilities is a public utilities commission operating pursuant to and subject to Minnesota Statutes, Sections 412.321 to 412.391 and Elk River City Code Sections 2-271 to 2-276. ARTICLE II – JURISDICTION Section 1. Elk River Municipal Utilities has jurisdiction over: A. The City of Elk River Municipal electric utility; and B. The City of Elk River water utility. ARTICLE III – COMMISSION MEMBERSHIP Section 1. Pursuant to Laws of Minnesota 2016, Chapter 97 – House File No. 2718, and Elk River City Code Section 2-271, the Elk River Municipal Utilities Commission shall consist of five members. No more than two members may also serve as City Council members. Section 2. Commissioners shall be appointed by the City Council to staggered terms. 9 ERMU Commission Policy – G.1a Bylaws ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 4 Section 3. Each Commissioner shall serve for a term of three years and until a successor is appointed and qualified. Section 4. Commissioners shall comply with the City’s conflict of interest ordinance, Elk River City Code Sections 2-131 to 2-135. Section 5. No member of the Commission shall receive a salary except as fixed by the City Council. ARTICLE IV – OFFICERS Section 1. The Commission shall annually choose a president from among its members. The president shall be designated the Chair of the Commission and shall perform such duties as shall be delegated to the Chair in the Commission’s adopted policies Section 2. The Commission may also annually appoint a Vice-Chair of the Commission who shall perform such duties as shall be delegated to the Vice-Chair in the Commission’s adopted policies. The Vice-Chair shall preside at meetings of the Commission if the Chair is absent. Section 3. The Commission shall also appoint a Secretary for an indefinite term. The Secretary need not be a member of the Commission and shall perform such duties as shall be delegated to the Secretary in the Commission’s adopted policies. Section 4. The Commission shall have the power to revoke a Commission member’s appointment as Chair or Vice-Chair, and appoint a replacement Chair or Vice Chair, if the Commission determines, by a vote of a majority of its members, to do so. The Commission shall also have the power to replace the Secretary at any time by a vote of the majority of its members. ARTICLE V – MEETINGS Section 1. The Commission shall hold at least one regular meeting each month, on the day and at the time designated by the Commission from time to time. Regular meetings shall be noticed as required by Minnesota Statutes. Section 2. The Commission may hold special meetings from time to time at the request of the Chair or the request of two other Commissioners. Special meetings shall be noticed as required by Minnesota Statutes. Section 3. A majority of the Commissioners shall constitute a quorum for the transaction of business, and the votes of a majority of the Commissioners present shall be sufficient to adopt any motion or resolution. The votes of members on any action shall be taken by ayes and nays recorded in the minutes. Section 4. Commission meetings are open to the public unless closed as authorized by Minnesota Statutes, and shall be governed by Roberts Rules of Order, latest revised edition, for 10 ERMU Commission Policy – G.1a Bylaws ______________________________________________________________________________ ______________________________________________________________________________ Page 3 of 4 all situations to which they apply and in which they are not inconsistent with these Bylaws, the Commission’s adopted Policies, and any special rules of order that the Commission may adopt.. ARTICLE VI – POWERS Section 1. The Commission shall have all of the powers enumerated in Minnesota Statutes, Section 412.361 and, except as provided in the Bylaws and the Commission’s adopted Policies, shall exercise those powers on its own behalf. ARTICLE VII – GENERAL MANAGER Section 1. The Commission shall have the power to appoint a General Manager, whose responsibilities, duties, limits of authority and accountability to the Commission shall be set forth in these Bylaws and as designated by the Commission from time to time in its adopted Policies. Section 2. The General Manager shall have the authority to implement the Commission’s powers under Minnesota Statutes, Section 412.361, Subds. 1 and 2 to enter into contracts for the operation of the utility and to employ all necessary help for the management and operation of the public utility, by entering into contracts and employing personnel consistent with the Commission’s adopted budget and pay plan. However, all contracts requiring public bidding, all contracts falling under Minnesota Statutes, Section 412.361, Subds. 3, 4 and 5, and all contracts required by the Commission’s adopted Policies to be approved by the Commission, shall be approved by the Commission. Section 3. If the position of the General Manager is vacant, the Commission may designate another to perform all or some of the General Manager’s duties. ARTICLE VIII – FINANCES, FUNDS AND REPORTS Section 1. The Commission shall maintain the funds, conduct the audits and make the reports required by Minnesota Statutes, Sections 412.371 and 412.381. ARTICLE IX – APPLICATION AND AMENDMENT Section 1. In the event that any provision of these Bylaws is or may be in conflict with the laws of any governmental body or power having jurisdiction over the Elk River Municipal Utilities Commission, or over the subject matter to which such provision of these Bylaws applies or may apply, such provision of these Bylaws shall be inoperative to the extent only that the operation thereof unavoidably conflicts with such law and shall in all other respects be in full force and effect. Section 2. These Bylaws may be amended by the Commission at any regular meeting by a majority vote of the entire Commission, provided the proposed amendment is on the agenda and made public no later than three days before the meeting. Section 3. In addition to these Bylaws, the Commission may adopt, from time to time, Governance Policies (adopted Policies) that are not inconsistent with these Bylaws. 11 ERMU Commission Policy – G.1a Bylaws ______________________________________________________________________________ ______________________________________________________________________________ Page 4 of 4 BYLAW HISTORY: Adopted June 13, 2017 12 ______________________________________________________________________________ Page 1 of 1 COMMISSION POLICY Section: Category: Governance Authority and Purpose Policies Policy Reference: Policy Title: G.1b Organizational Core Purpose PURPOSE: The purpose for organizational initiatives and goals is to produce desirable results. In order for any organization to be effective and maintain sustainable success, the organization must define its organizational core purpose. This core purpose then becomes the basis for establishing the criteria from which results and organization success are measured. Just as the economy, industry, and community evolve and change, the organizational core purpose must also evolve and change. The organization must establish and maintain a review process of their organizational core purpose for sustainable success. With this policy, the Commission commits that it will govern as a body in a manner consistent with its adopted mission statement, vision statement, organizational values, and organizational fundamentals. The Commission will also commit to govern as a body through policy development and initiative prioritization which are in alignment with adopted planning themes. The Commission acknowledges the importance for the development and support of the mission statement, vision statement, organizational values, organizational fundamentals, and planning themes to achieve the following: an environment of transparency; a clear line of sight from tasks through goals; and a work environment for meaningful work providing value to the community. The Commission also commits to engage in an ongoing review process of the organizations core purpose, to maintain organizational effectiveness and sustainable success. POLICY: The Commission will adopt and maintain relevant and sustainable organization core purpose documents including a mission statement, a vision statement, organizational values, organizational fundamentals, and planning themes. The Commission will govern ERMU in a manner consistent with these adopted documents outlining the organization’s core purpose. The Commission will review and update these documents as necessary at a minimum of once every five years through engaging with management and staff in a strategic planning process. POLICY HISTORY: Adopted May 9, 2017 13 ______________________________________________________________________________ Page 1 of 1 COMMISSION POLICY Section: Category: Governance Authority and Purpose Policies Policy Reference: Policy Title: G.1c Mission Statement PURPOSE: One of the key components in establishing an organizational core purpose is the development and ongoing support of a relevant mission statement. Through the development, adoption, and ongoing support of an organizational mission statement, the Commission establishes a guiding statement to communicate both internally and externally the day to day purpose for the organization’s existence. The mission statement then plays an important role in the development of policies and programs and serves as a guide for effective governance and operations. POLICY: The Commission adopts and commits to govern in a manner consistent with the following mission statement: Provide our customers with safe, reliable, cost effective and quality long term electric and water utility service. To communicate and educate our customers in use of utility services, programs, policies, and future plans. These products and services will be provided in an environmentally and financially responsible manner. POLICY HISTORY: Adopted May 9, 2017 14 ______________________________________________________________________________ Page 1 of 1 COMMISSION POLICY Section: Category: Governance Authority and Purpose Policies Policy Reference: Policy Title: G.1d Vision Statement PURPOSE: A vision statement is a key component in establishing an organizational core purpose. Through the development, adoption, and ongoing support of an organizational vision statement, the Commission establishes a guiding statement to communicate both internally and externally where the organization aspires to be. The vision statement then plays an important role in inspiring the employees to engage and help support the organization in achieving their goals. The vision statement also plays an important role in providing transparency in policy development and organization initiatives to the customers and the public. POLICY: The Commission adopts and commits to govern in a manner consistent with the following vision statement: Provide exceptional services and value to those we serve. POLICY HISTORY: Adopted May 9, 2017 15 ______________________________________________________________________________ Page 1 of 1 COMMISSION POLICY Section: Category: Governance Authority and Purpose Policies Policy Reference: Policy Title: G.1e Organizational Values PURPOSE: Governance and leadership style set the tone for organizational culture. With this policy, the Commission acknowledges the importance for establishing expectations for organizational values to guide policy development and organizational behavior. POLICY: The Commission adopts, as an expectation of organization operational behavior, and commits to govern in a manner consistent with the following organizational values: Value 1: Integrity – Honest, accountable and united in all that we do. Value 2: Quality – Services that reflect excellence, dependability and expertise. Value 3: Communication – Respectful and engaged interactions that are timely and clear. Value 4: Safety – A culture that protects our customers, employees and assets. Value 5: Competitive – Provide the best value for the services we deliver. POLICY HISTORY: Adopted May 9, 2017 Revised June 12, 2018 16 ______________________________________________________________________________ Page 1 of 1 COMMISSION POLICY Section: Category: Governance Authority and Purpose Policies Policy Reference: Policy Title: G.1f Organizational Fundamentals PURPOSE: The foundation to a building provides the structure stability to support the many components of the building, each of which service for different functions and combine to provide value and meaningful purpose. Similarly, organizational fundamentals serve as foundational concepts on which to build a company. These organizational fundamentals then align with and provide support and guidance for achieving the mission and vision of the organization. POLICY: The Commission adopts and commits to govern in a manner consistent with the following organizational fundamentals: Fundamental 1: Safety, Reliability, and Quality of Utility Services. Fundamental 2: Customer Service and Employee Development. Fundamental 3: Competitive Rates, and Financial and Organizational Health. POLICY HISTORY: Adopted May 9, 2017 Revised November 13, 2018 17 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Authority and Purpose Policies Policy Reference: Policy Title: G.1g Planning Themes PURPOSE: Providing transparency and a clear connection between the organizational mission and vision to initiative and task, is an important leadership guide to make sure resources are contributed towards meaningful work. Line of sight between mission and task also helps to create a positive work environment where employees can identify the value of their efforts in achieving the organizational goals. Planning themes are used to prioritize initiatives, schedule and budget required resources, and create a clear line of sight between mission and task. With this policy the Commission acknowledges the importance of planning in a manner consistent with the organizational mission and vision such that the organizations resources are being used responsibly for meaningful work. POLICY: The Commission adopts and commits to govern in a manner consistent with the following planning themes: Theme 1: Communication – Improve the effectiveness of our communications inside the organization, with our customers, and with the community. Theme 2: Personnel and Governance – Develop our most valuable and vulnerable assets….our commissioners, employees, leaders, and future leaders. Theme 3: Strategic Thinking – Create a culture of strategic thinking and ensure line of sight from mission to vision. Theme 4: Technology – Implement the prudent use of technology to improve efficiency and increase customer choice, communication, and value. Theme 5: Growth – Assess the growth curve to make decisions regarding organizational change. 18 ERMU Commission Policy – G.1g Planning Themes ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 Theme 6: Process, Measurement, and Financial Health – Improve processes and measurement to better determine and report efficiency and effectiveness of organization and to ensure financial and organizational health. POLICY HISTORY: Adopted May 9, 2017 19 ______________________________________________________________________________ Page 1 of 1 COMMISSION POLICY Section: Category: Governance Governance Policies Policy Reference: Policy Title: G.2 Commission Purpose PURPOSE: With this policy, the Commission commits that it will govern as a body that understands its obligations to the owners and other stakeholders of the ERMU electric and water utility enterprises. POLICY: The Commission’s principal purpose is to ensure that ERMU achieves appropriate results (See Results Policies) for its owners, customers, employees, and other stakeholders at an appropriate cost, while avoiding unacceptable actions and situations. POLICY HISTORY: Adopted May 9, 2017 20 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Governance Policies Policy Reference: Policy Title: G.2a Commission – City Council Relationship and Roles PURPOSE: With this policy, the Commission describes its role in relation to the Elk River City Council and the way in which it desires to interact with the City Council. POLICY: The Commission and the City Council share the responsibility for ensuring effective governance of ERMU for the benefit of the City, its citizens, and ERMU’s utility customers. The Commission desires to maintain a working relationship with the City Council that will enable both bodies to coordinate and carry out their separate responsibilities so that ERMU is governed with excellence. Although governed autonomously by the Commission, ERMU is part of the City of Elk River’s City government. This creates opportunities for bringing greater value to the stakeholders of both the City and ERMU through a hybrid of municipal utilities and city governance. It is the intent of the Commission to align its governance structures and processes with the city in ways that will realize opportunities for greater value. Consistent with the preceding, the Commission will: 1. Routinely monitor, evaluate, and strive to improve its performance, keeping the City Council informed in a thorough and timely manner about the effectiveness of the Commission’s governance with respect to the following: a. Compliance with legal and fiduciary responsibilities; b. Compliance with Commission-established Governance policies that are periodically reviewed and updated, and that set expectations for ERMU’s strategic and business results, governance, and management. 21 ERMU Commission Policy – G.2a Commission – City Council Relationship and Roles ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 2. Support ERMU’s active participation in the City’s Economic Development Authority (EDA), representing the interests of ERMU’s stakeholders and working to develop common goals for economic development. 3. Provide an opportunity for the City Council to meet jointly with the Commission at least once every three (3) years. The meeting will be held following completion of the annual independent financial audit. The focus of this joint meeting will be a report by the Commission to the Council of ERMU’s financial and operating results for the preceding fiscal year, along with an opportunity for the Council to provide input to the Commission on matters related to planning and budgeting for the next fiscal year. The Commission may request or recommend additional joint meetings for other specific purposes. 4. Develop, update as necessary, and provide to the Mayor and City Council documentation that is intended to ensure the appointment of qualified and committed ERMU Commissioners. Such documentation will include relevant knowledge and experience, core competencies, and character traits that are consistent with the Commission’s requirements and commitments to effective governance. The Commission’s expectation is that the City Council will use this information to appoint persons who are appropriately qualified and well-informed about the expectations for service as a Commissioner. 5. At least annually at the time of budgeting for the next fiscal year, consider ERMU’s financial condition with respect to voluntary payments in lieu of taxes (PILOT) and other donations of services from the ERMU utility enterprises to the City that are likely to have material financial consequences for both entities. The Commission will inform the City Council promptly of any material changes in the PILOT and other donations. Further, the Commission will use a process for determining PILOT and other financial donations to the City that is transparent, consistent with state and national benchmarking comparisons, forecasted and budgeted, and with a mutually understood methodology. In approving or allowing other donations such as labor, street lighting, and water for fire suppression, the Commission will subscribe to the philosophy that it is providing value to the community and not just shifting costs from one entity to the other. POLICY HISTORY: Adopted May 9, 2017 22 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Governance Policies Policy Reference: Policy Title: G.2a1 Payment in Lieu of Taxes and Other Donations to the City of Elk River PURPOSE: The success of ERMU is linked with the success of our community. And the success of our community is linked with the operation of our city government and ERMU. ERMU was purchased by the City of Elk River in 1945 and separate governance was created per State Statute in 1947. Although governed separately, ERMU is still an important component of our local government and our city services. It is typical for a municipal utility to provide a Payment in Lieu of Taxes (PILOT) and other donations to their city, regardless of a separation of governance. Although typical, this contribution should never inhibit ERMU’s ability to make repayment on debt, cause ERMU to become non-competitive, or inhibit needed investment in personnel or infrastructure which may hurt ERMU’s ability to meet the needs of their customers. For these reasons the PILOT and other donations should be reviewed at least once every five (5) years by the ERMU Commission. POLICY: The PILOT and other donations to the City of Elk River shall be as follows: 1. Payment in Lieu of Taxes (PILOT) – The PILOT transfer from Elk River Municipal Utilities to the City of Elk River shall be four percent (4%) of the revenues generated by ERMU’s electric customers within the corporate boundaries of the City of Elk River. 2. Donated Electricity – Elk River Municipal Utilities shall donate all electricity to the City of Elk River for street lights and signal lights. 3. Donated Water – Elk River Municipal Utilities shall donate water for use by the Elk River Fire Department (ERFD) for the purpose of extinguishing fires within the City of Elk River and other cities under contract with the ERFD. For the purpose of creating ice rinks for public/ non-enterprise use, ERMU shall donate water for use by the Elk River Parks Department. 23 ERMU Commission Policy – G.2a1 Payment in Lieu of Taxes and Other Donations to the City of Elk River ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 Elk River Municipal Utilities shall donate water for the use by the Elk River Streets Department for the use of street sweeping. 4. Donated Labor – Because of specialized skills and equipment, ERMU may be able to provide a better value to our community by donating labor to the City of Elk River. For example, ERMU has trained employees and the equipment to hang banners where the City does not. In this example, ERMU is able to provide this donated service to the City for less cost than a third party, creating greater value to our community. For such situations, ERMU shall donate labor to the City of Elk River, as appropriate, where a greater value is created for our community and where ERMU is not subjected to undue burden. In addition to hanging banners, other examples include: maintenance of street lighting, relamping signal lights, locating underground fiber optics and/or other facilities, administration costs associated with the billing of city franchise fees, installation of temporary lighting, relamping of city ball field lighting, installation and/or maintenance of city warning sirens, meter reading for wastewater, assistance with tree trimming, etc… POLICY HISTORY: Adopted December 6, 1994 Revised June 6, 2008 Revised July 2, 2013 Revised October 13, 2015 Revised January 1, 2016 Revised October 8, 2019 24 ERMU Commission Policy - G.2a2 Street Light Installation and Maintenance - Memorandum of Understanding 25 26 ERMU Commission Policy - G.2a3 Repairs to Private Water Utility Line - Memorandum of Understanding 27 28 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Governance Policies Policy Reference: Policy Title: G.2b Governing Style PURPOSE: With this policy, the Commission intends to establish and articulate an institutional philosophy and approach that will enable it to govern with excellence. POLICY: Commission Members, individually and collectively, will act in ways that visibly demonstrate the ERMU style of governance. Commission members will lead proactively and the Commission will enforce upon itself the discipline needed to govern effectively and consistently. Consistent with the preceding general statements: 1. The Commission will guide and inspire Management and staff employees toward a strategic vision through the thoughtful and proactive development of written policies that express clear expectations and shared accountability for results. 2. The Commission’s policies will reflect its statuary authority, effectively meeting its responsibilities while representing and balancing the sometimes competing interests of customers, the ERMU utility business enterprises, the City of Elk River, ERMU employees, and others who may be affected, either directly or indirectly, by ERMU’s decisions and actions. 3. The Commission will govern ERMU as the significant business enterprise that it is, enabling ERMU to provide quality services to its customers and prudent financial contributions to the City, while responsibly managing and sustaining its physical assets and financial resources. 4. The Commission, with support from the General Manager, will set its own agenda for governance and, to the greatest extent practical, will initiate its own policies. The Commission will consider and adopt policies in accordance with its stated Principles for 29 ERMU Commission Policy – G.2b Governing Style ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 Policy Development. The Commission will routinely review, evaluate and update its policies, as necessary. 5. By adopting and enacting its policies, the Commission will create and sustain a governance structure and processes in which the respective roles and accountabilities of the Commission and Management are clearly delineated, understood, and mutually supported. 6. The Commission will promote a sense of partnership, trust, and mutual respect among its individual members, with ERMU Management and staff employees, and with customers, City, and community interests to provide value to all stakeholders. 7. The Commission will establish and use a variety of methods to promote two-way communications and dialogue about ERMU’s future direction, accomplishments, and major challenges among its stakeholders. 8. The Commission will support the development of a values-based organization with high standards of professional conduct, interpersonal behaviors, and self-accountability for results. 9. The Commission will encourage mutual respect, open dialogue and expression of diverse viewpoints among Commission members and Management; the Commission will acknowledge and effectively handle disagreements, working toward consensus in its deliberations and decisions. 10. The Commission will support the hiring and retention of a capable General Manager, who will be responsible to the Commission for the management and operation of ERMU’s utility businesses. The Commission will also support the General Manager in creating an organization which attracts and retains capable management and staff employees, and develops leaders. 11. Commission members will devote appropriate attention, time and energy to govern effectively. They will understand their responsibilities and take advantage of opportunities for continuing education and development that improve their governance capabilities. 12. The Commission will seek to create a reputation that attracts qualified and dedicated persons to become Commission members. It will do this by building public understanding of its governance role, as well as the commitments and contributions of its individual members. 13. The Commission will periodically evaluate and discuss its policies and the performance of the ERMU organization in relation to those policies, with particular attention to the needs and expectations of its various stakeholders. POLICY HISTORY: Adopted May 9, 2017 30 ______________________________________________________________________________ Page 1 of 4 COMMISSION POLICY Section: Category: Governance Governance Policies Policy Reference: Policy Title: G.2c Agenda Planning PURPOSE: With this policy, the Commission establishes its expectations for a proactive governance process, expressed in terms of a forward-looking agenda of recurring governance functions. The Commission also establishes the process for determining the agenda for each regularly scheduled Commission meeting. POLICY: The Commission, with support from the General Manager, will prepare, distribute, and follow a governance agenda that spans the upcoming fiscal year. The Commission will update this agenda annually during the fourth quarter of each fiscal year. The Commission will review the agenda as a part of each regular Commission meeting. The Commission’s governance agenda will include a schedule of its recurring governance functions by month to facilitate the preparation of meeting agendas and the conduct of regular and special Commission meetings. Recurring governance functions include but are not limited to the following: consideration of stakeholder interests, policy review and development, strategic planning, approval of financial and business plans including budgets, organizational performance monitoring, internal and external audit reviews, General Manager performance planning and evaluation, governance evaluation and development, Commission Officer election, and committee appointments. The Commission will keep its governance agenda up-to-date and available to all Commission members, the Commission’s Legal Counsel, and the General Manager. The General Manager, with direction from the Commission, will also prepare and distribute, in a timely manner, a detailed agenda that provides for open communications and the orderly and efficient conduct of each regular Commission meeting, special Commission meeting and Commission work session. Agendas for regular Commission meetings will address items from the governance agenda, Commission actions required by law, and other appropriate business matters. Agendas for special Commission meetings and Commission work sessions will typically focus on a limited number of specific items that are best handled in those types of meetings. Consistent with the preceding: 31 ERMU Commission Policy – G.2c Agenda Planning ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 4 1. During the first quarter of each fiscal year (January - March): a. The Commission will elect officers at its March meeting, following the appointment of Commissioners by the City Council. b. The Commission and Management will review ERMU’s current Strategic Plan along with the results of the Annual Business Plan for the preceding fiscal year. 2. During the second quarter of each fiscal year (April-June): a. The Commission will consider and approve the external audit report as specified in the Governance Agenda. b. The Commission will review the financial reserves balances and related policy. The Commission shall take action as appropriate per policy. c. The Commission and Management will evaluate the Performance Matrix for the preceding fiscal year. d. The Commission will formally evaluate the performance of the General Manager. 3. During the third quarter of each fiscal year (July-September): a. The Commission will formally evaluate its own performance. Following this evaluation, the Commission, with the support from the General Manager, will arrange for governance education for the next fiscal year, including education related to the determination of desired results. b. The Commission and Management will begin its annual update of the Strategic Plan and Financial Plan for the succeeding five-year period. 4. During the fourth quarter of each fiscal year (October - December): a. The Commission will review and approve Management’s proposed five-year Capital Improvement Plan as well as its proposed Annual Business Plan with budget, rates, and fees for the next fiscal year. b. The Commission, in conjunction with Management, will determine the stakeholder communications plan and schedule for the next fiscal year. 5. The Commission will direct the General Manager to prepare and distribute the agenda for each regularly scheduled meeting as follows: a. The Commission Chair and the General Manager will discuss, at least monthly, approximately seven (7) days in advance of each regularly scheduled Commission 32 ERMU Commission Policy – G.2c Agenda Planning ______________________________________________________________________________ ______________________________________________________________________________ Page 3 of 4 meeting to develop a tentative agenda, including any items to be discussed in closed session. b. The tentative agenda and meeting packet of supporting materials will be distributed to Commission members and others approximately three (3) days in advance of the Commission meeting. Presentations and supplemental information items may be provided at the Commission meeting, c. The General Manager will ensure the posting of a meeting notice, along with the tentative agenda, in compliance with applicable law. d. Any Commission member or the General Manager may request additions, deletions or other changes to the agenda at the beginning of a regular meeting when the Commission Chair requests approval of the tentative agenda. Items requiring research or other advance preparation should be suggested for future meeting agendas. No items may be added to the agenda of special meetings and work sessions. e. Agendas for regular Commission meetings will be prepared in a consistent format as shown in the most current version of the Commission’s “Model Agenda”. Agenda items will be categorized by their nature, specifically identifying in order items that are presented: i. Governance – Includes agenda items: call meeting to order, pledge of allegiance, consider agenda, resolutions, and similar actions of governance. ii. Consent – Includes items that are considered routine. There may be questions asked for clarification, but typically these items have no discussion. The items on consent are presented for Commission consideration all together and by one motion. A Commission member may request before the motion to approve the “Consent” items that any item(s) be moved from “Consent” to “Business Action.” iii. Open Forum – This is an opportunity for public participation. Speakers will be required to state their name and address for public record. Items will be heard at the discretion of the Commission Chair. Items will be for discussion only; no action can be taken on the topic during that meeting. iv. Policy & Compliance – Policy review, policy development, and compliance monitoring. v. Business Action – Current business action requests and performance monitoring reports. vi. Business Discussion – This includes strategic planning, general updates, and informational reports. Topics may be tabled for future Business Action consideration. Will include an agenda item title “Future Planning” during which time any Commissioner or the General Manager may discuss and suggest items for placement on future meeting agendas. This agenda category will also include the item “Other Business” to provide additional flexibility for discussion of matters not specifically contemplated in advance or for agenda items that do not required Commission action and do not conform to any of the predetermined categories. 33 ERMU Commission Policy – G.2c Agenda Planning ______________________________________________________________________________ ______________________________________________________________________________ Page 4 of 4 f. The Commission prefers to introduce important decision items on the agenda at least one meeting before the meeting at which a decision is required. This is a preference but not a requirement. g. The Commission will include monitoring of the General Manager on a meeting agenda if monitoring reports show policy violations, or if policy criteria are to be debated. POLICY HISTORY: Adopted May 9, 2017 Revised December 11, 2018 34 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Governance Policies Policy Reference: Policy Title: G.2d Commission Member Role, Responsibilities, and Orientation PURPOSE: With this policy, the Commission describes the role and responsibilities of ERMU Commission members when acting in their capacity as a Commission in accordance with applicable law. The Commission also establishes its expectations for the orientation of new Commission members. POLICY: The Commissioners of ERMU act in the interests of customers, employees and other stakeholders. ERMU stakeholders expect the Commission to make policy decisions that ensure appropriate organizational performance as set forth in the Commission’s adopted Vision, Core Purpose, Mission, and Core Values. Consistent with this general statement: 1. The Commission will continuously create and enhance connections between ERMU and its stakeholders. 2. The Commission will produce, maintain and use written governing policies that, at the broadest levels, address each of the following categories of deliberation and decision- making. a. Authority and Purpose: Policies that recognize the Utilities’ and Commission’s right to exist, and authorities and policies to define organizational core purpose. b. Governance: Policies that specify how the Commission conceives, carries out and monitors its own tasks. c. Commission-Management Connection: How organizational authority is delegated, its proper use is monitored, and the General Manager is accountable for ERMU’s performance. 35 ERMU Commission Policy – G.2d Commission Member Role, Responsibilities, and Orientation ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 d. Delegation to Management: Limitations on executive authority that establish the prudence and ethics boundaries within which all executive activity and decisions must take place. e. Results: ERMU’s outcomes, impacts and benefits. 3. The Commission will measure and evaluate the General Manager’s performance against its Results and Delegation to Management policies. 4. Commission members will perform their responsibilities to protect and enhance the value of ERMU, exercising due diligence and using sound business judgment consistent with ERMU’s enabling legislation and other applicable laws. 5. The ERMU Commission is committed to excellent governance. This requires that individual Commissioners be well-informed about ERMU, its customers and stakeholders, the utility business, prudent financial management, and the Commission’s own governance structure and processes. Consistent with this commitment and Commission policies, the ERMU Commission will develop, implement and maintain current a formal orientation program for new Commission members. POLICY HISTORY: Adopted May 9, 2017 36 ______________________________________________________________________________ Page 1 of 3 COMMISSION POLICY Section: Category: Governance Governance Policies Policy Reference: Policy Title: G.2e Commission Member Conduct PURPOSE: With this policy, the Commission establishes its expectations for the ethical conduct and performance of ERMU Commission members. POLICY: The ERMU Commission commits itself to ethical, diligent, businesslike, and lawful conduct, including proper use of authority, performance of responsibilities, and appropriate good behavior. Consistent with this general statement: 1. Commission members are expected to be present, in person or electronically, at all regular and specially called meetings of the Commission, and any Commission committees to which they are assigned. 2. Commission members will properly prepare themselves to perform their assigned duties as Commission officers and members, and for effective Commission deliberation, decision- making, and representation in advance of all assigned meetings and other Commission- approved and Commission-related activities. 3. Commission members must, at all times, represent the interests of ERMU and its stakeholders. This accountability supersedes any conflicting loyalty such as advocacy to a personal cause or interest groups, and membership on other Commissions or employment in other organizations. 4. Commission members may not attempt to exercise individual authority over the organization except as explicitly set forth in Commission policies. 37 ERMU Commission Policy – G.2e Commission Member Conduct ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 3 a. A Commission member's interactions with the General Manager or with staff must reflect that there is no authority vested in individual Commission members except when explicitly authorized by the Commission. b. A Commission member's interactions with public, media or other entities must reflect the preceding limitation and the inability of any Commission member to speak for the Commission except to repeat explicitly stated Commission decisions or actions already taken. c. Commission members will not make individual judgments of the General Manager or staff performance, except through the process established by the Commission’s policy on Annual Evaluation of the General Manager. 5. Individual Commission members will never lead the public, media or staff to have the belief that the General Manager or any staff member is out of compliance with Delegation to Management Policies unless the Commission has made a formal determination of non- compliance. 6. Commission members will respect the confidentiality that is appropriate to issues and information of a sensitive nature. 7. Commission members are bound by, and will comply with, all State Statutes regarding conflicts of interest and Elk River City Code Sections 2-131 to 2-135. 8. In addition, Commission members will avoid any situation in which they stand to benefit individually through financial gain or influence. If such situations cannot be avoided, Commission members will disclose any known or potential conflicts, excuse themselves from any meeting during those times when the matter causing the conflict or potential conflict is under consideration, and abstain from any voting on the matter. 9. Depending on the circumstances, a Commission member may disclose any known or potential conflict to the Commission Chair, the General Manager, or ERMU’s Legal Counsel. Legal Counsel will be available to advise the Commission, individually or collectively, about potential conflicts. Generally, an individual Commission member will first approach the Commission Chair or the General Manager about a potential conflict. Legal Counsel is also available to advise individual Commissioners in confidence about potential conflicts. 10. In support of ERMU’s standards of high ethical conduct, Commission members WILL NOT: a. Deceive, defraud, or mislead other ERMU Commission members, management, or staff members or those with whom ERMU has business or other relationships. b. Misrepresent ERMU in any negotiations, dealings, contracts, or agreements. 38 ERMU Commission Policy – G.2e Commission Member Conduct ______________________________________________________________________________ ______________________________________________________________________________ Page 3 of 3 c. Divulge or release any information of a confidential or proprietary nature relating to ERMU’s purpose, mission, plans, business strategies, or operational databases d. Use ERMU property, financial resources, or services of ERMU personnel for personal benefit. e. Obtain a personal advantage or benefit through the use of ERMU’s name, either directly or through relationships established by the General Manager, another Commission member, or any staff member. f. Accept individual gifts of any kind in connection with the Commission member’s relationship with ERMU. g. Withhold their best efforts to perform their duties to acceptable standards. h. Engage in unethical business practices of any type. i. Violate any applicable laws or ordinances. POLICY HISTORY: Adopted May 9, 2017 39 G.2e1 – Conflicts of Interest 1.0 Conflicts of Interest Prohibited The credibility of ERMU rests heavily upon the confidence which citizens have in ERMU officials and employees to render fair and impartial services to all citizens without regard to personal interest and/or political influence. Thus, ERMU officials and employees must scrupulously avoid any activity which suggests a conflict of interest between their private interests and ERMU responsibilities. Officials and employees of ERMU, or their family members, shall not engage or have financial interest in any business or other activity which could reasonably lead to a conflict of interest with the official’s or employee’s primary ERMU responsibilities. Family members of an official or employee shall be deemed to be the official’s or employee’s spouse, parents, children, siblings, father-in-law, mother-in-law, brothers-in-law, and sisters-in-law and the lineal descendants of any of them. 2.0 Contracts with ERMU Commissioners and Employees A. Prohibition No sale, lease or contract shall be entered into by or on behalf of ERMU in violation of Minnesota Statutes, Sections 471.87 – 471.89. B. Procedure Contracts which are permitted by Minnesota Statutes, Section 471.87 – 471.89 may be entered into, provided the requirements of those Statutes are met, including: 1) A determination is made that the contract price is as low as or lower than the price at which the commodity or services could be obtained elsewhere. 2) The ERMU Commission approves the contract by unanimous vote. 3) If an ERMU Commissioner is the interested officer, that Commissioner shall abstain from voting on the matter. 4) The ERMU Commission passes a resolution, in the form attached, setting out the essential facts, such as the nature of the officer’s or employee’s interest and the item or service to be provided, and stating that the contract price is as low or lower than could be found elsewhere. 5) Before the contract is approved, the interested officer or employee files an affidavit, in the form attached, with the General Manager that contains the following:  The name and office of the interested officer or employee.  An itemization of the commodity or services furnished. 40  The contract price.  The reasonable value.  The interest of the officer or employee in the contract.  That, to the best of the officer’s or employee’s knowledge and belief, the contract price is as low or lower than the price that could be obtained from other sources. 3.0 Examples of Prohibited Conflicts of Interest Examples of activities which are not in accordance with this policy include, but are not limited to, the following: 1. Acceptance by an ERMU official of any gift from an interested person in violation of Minnesota Statutes, Section 471.895; 2. Activities which require the official or employee to interpret ERMU policies or regulations when such activity involves matters with which the official or employee has business and/or family ties; 3. Consulting activities within the City of Elk River or the ERMU service territory if such consulting involves talents or skills primarily related to the official’s or employee’s ERMU work responsibilities; 4. Using an official’s or employee’s authority, influence or ERMU position for the purpose of private or personal financial gain; 5. The use of ERMU time, facilities, equipment or supplies for the purpose of private or personal financial gain; 6. Entering into a business transaction when it involves using confidential information gained in the course of employment; 7. Accepting other employment or public office where it will affect the official’s or employee’s independence of judgment or require use of confidential information gained as a result of ERMU duties; 8. Conducting personal business while working regularly scheduled hours; and 9. Accepting rebates or procuring any financial gain through the bidding process or employment of outside personnel. 4.0 Enforcement Any official or employee engaging in any activity involving either an actual or potential conflict of interest or having knowledge of such activity by another official or employee shall promptly report the activity to the ERMU General Manager or an ERMU Commission. The ERMU General Manager or Commission shall investigate the matter and make a determination as to whether or not an actual or potential conflict exists. If the ERMU General Manager or Commission determines a conflict exists, it shall be presumed that the continuation of the practice would be injurious to the effectiveness of the official or employee in carrying out his duties and responsibilities. In such cases the official or employee shall immediately terminate the conflicting activity or be subject to termination of employment or removal from office. Adopted June 12, 2012 Revised May 14, 2019 41 Resolution Authorizing Contract with an ERMU Commissioner or Employee (under Minn. Stat. §§ 471.88, subd. 5 and 471.89, subd.2) WHEREAS, ERMU desires to purchase the following . AND WHEREAS, is the of ERMU and will be financially interested in the contract; AND WHEREAS, it is determined that the contract price of $ is as low as, or lower than, the price at which the goods or services can be obtained elsewhere at this time; AND WHEREAS, the contract is not one that is required to be competitively bid; AND WHEREAS, has filed an affidavit of official interest as required under Minn. Stat. §§ 471.89 and the ERMU Conflict of Interest Policy; NOW BE IT RESOLVED, by the ERMU Commission, that ERMU staff is directed to make the above-mentioned purchase on behalf of ERMU from for a price of $ . THIS RESOLUTION passed and adopted this _____day of _______________, 20___, to comply with the provisions of Minn. Stat. §§ 471.87-.89 and the ERMU Conflicts of Interest Policy. Moved by Commissioner ________________, seconded by Commissioner__________________ The following voted in favor of said resolution:_______________________________________ The following voted against the same:_______________________________________________ The following abstained:__________________________________________________________ By Chair By General Manager 42 Affidavit of Official Interest in Claim (under Minn. Stat. §§ 471.88, subd. 5 and 471.89, subd. 3) STATE OF MINNESOTA ) COUNTY OF ) I, , being duly sworn state the following: 1) I am the of the Elk River Municipal Utilities. 2) On , the following goods or services were furnished by to ERMU: (specify the type of goods, merchandise, equipment or services that were purchased). 3) The contract price for such goods or services was $ and their reasonable value was $ . 4) At the time such goods/services were furnished to ERMU, I had the following personal financial interest in this contract: (specify the nature of the personal financial interest). To the best of my knowledge and belief the contract price is as low as, or lower than, the price at which the goods or services could be obtained from other sources. I further state that this affidavit constitutes a claim against ERMU for the contract price, that the claim is just and correct, and that no part of the claim has been paid. Subscribed and sworn to before me this day of , 20___. (Notary) GP:3186227 v1 43 ______________________________________________________________________________ Page 1 of 3 COMMISSION POLICY Section: Category: Governance Governance Policies Policy Reference: Policy Title: G.2f Commission Officer Roles, Responsibilities, and Succession PURPOSE: With this policy, the Commission communicates the functions for which ERMU’s officers are accountable and the limits of authority that the Commission delegates to its officers. POLICY: The offices of the ERMU Commission include a Chair, a Vice-Chair, and a Secretary. The Commission elects the Chair and Vice Chair to one-year terms each year during its regular meeting in the month of March. An officer’s term begins that day and expires without action of the Commission upon resignation or death of the officer or upon failure of the officer to comply with the criteria necessary to hold the office. An officer’s term is extended without action of the Commission until a successor is duly elected. Any Commission member is eligible for office at any time; however, a Commission member nominated for the position of Chair will normally have served at least one term as Vice-Chair. The office of Secretary is held by the General Manager; however, the General Manager may appoint another employee as Secretary, with the concurrence of the Commission. Chair The Chair is accountable to the Commission for the integrity of the Commission's governance process. The Commission authorizes the Chair to call and schedule special meetings, set its meeting agendas, preside over its meetings and, with limitations, represent the Commission to outside parties. The Commission expects the Chair to set and maintain a friendly and productive tone for all meetings, encouraging full participation of all Commission members, effective deliberation and decision-making, and constructive resolution of disagreements. More specifically: 1. The expected result of the Chair’s function is that the Commission behaves in a manner that is consistent with its own policies and in full compliance with those obligations that others, with legitimate authority, impose on it from outside the organization. The Chair, by planning 44 ERMU Commission Policy – G.2f Commission Officer Roles, Responsibilities, and Succession ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 3 the Commission’s governance and meeting agendas will ensure that the Commission addresses those matters which, according to Commission policy, clearly belong to the Commission to determine, not to the General Manager. The Chair, by presiding over Commission meetings, will ensure that deliberation and decision-making at Commission meetings will be fair, open, and thorough, but also timely, orderly, and to the point. 2. The authority of the Chair is limited to Commission decision-making that falls within areas covered by Commission policies on Governance and Commission-Management Connection, except where the Commission specifically delegates portions of this same authority to others. The Commission authorizes the Chair to use any reasonable interpretation of the provisions in these policies in the discharge of duties. a. The Commission empowers the Chair to call and schedule all special meetings, set all meeting agendas, and preside over all Commission meetings with all of the commonly accepted power of that position (e.g., Ruling, recognizing, handling disagreements and unacceptable behaviors, etc). b. The Commission empowers the Chair, exercising reasonable discretion, to control the conduct of all meetings. This includes, but is not limited to, determining the time to be devoted to any particular matter before the Commission, whether any person in attendance may address the Commission on any subject and the order or duration of any presentations or comments permitted, closure of discussion on any matter before the Commission, and expulsion of any person whose conduct is disruptive. The Commission may, by a motion and majority vote of the Commissioners present, overrule the Chair on decisions related to the conduct of meetings. c. For purposes of meeting management, the Commission adopts the Rules contained in the current edition of Robert's Rules of Order Newly Revised for all situations to which they are applicable and in which they are not inconsistent with ERMU’s bylaws, policies and any special rules of order that the Commission may adopt. d. The Commission authorizes the Chair to execute official documents on its behalf. e. The Commission empowers the Chair to organize the work of the Commission, and to assign specific tasks to Commission members and to Committees established by the Commission. Specifically, the Commission empowers the Chair to schedule and coordinate the annual process for performance planning and evaluation of the General Manager. f. The Chair has no authority to make decisions about policies created by the Commission within the Results and Delegations to Management policy areas. As a result, the Chair has no authority to supervise or direct the General Manager. g. The Chair may represent the Commission to outside parties in announcing Commission- stated positions and in stating decisions and interpretations of Commission policy within the areas delegated by the Commission. The Chair will report to the Commission, as 45 ERMU Commission Policy – G.2f Commission Officer Roles, Responsibilities, and Succession ______________________________________________________________________________ ______________________________________________________________________________ Page 3 of 3 soon as practical, any communications made on behalf of the Commission. Representation of the Commission to outside parties is subject to the following limitations: i. Communications must be consistent with ERMU’s core purpose, core values, and mission, and with the role and authority of the Commission as set forth by Commission policies. ii. Communications must, as far as practical, represent the collective wisdom or position of the Commission. iii. Communications must be limited to deliberations already conducted, actions taken, or decisions made. Communications must not be speculative in nature. h. The Chair may delegate the authority granted in this policy to others (e.g. Vice-Chair), but remains accountable for its use. Vice-Chair The principal function of the Commission Vice-Chair is to prepare for the office of Chair and to take over the functions of the Chair when the Chair is unavailable, or otherwise at the request of the Chair. Secretary The principal function of the Commission Secretary is to ensure that: 1. Notices of Commission meetings, meeting agendas, and supporting materials are prepared and distributed as required by Policy; 2. Appropriate written records of Commission meetings are prepared and distributed to all Commission members and the General Manager three (3) days prior to the next Commission meeting; 3. Resolutions and other official actions of the Commission are prepared and executed in proper form; and 4. Written records of Commission meetings, including resolutions and other official actions are archived in secure location(s) and disposed of in compliance with applicable laws and regulations. POLICY HISTORY: Adopted May 9, 2017 46 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Governance Policies Policy Reference: Policy Title: G.2g Commission 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; 47 ERMU Commission Policy – G.2g Commission Committees ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 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 48 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Governance Policies Policy Reference: Policy Title: G.2g1 Wage & Benefits Committee Charter 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 Robert’s Rules of Order Newly Revised for all situations to which they are applicable and are not inconsistent with ERMU’s bylaws, policies, and any 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 49 ERMU Commission Policy – G.2g1 Wage & Benefits Committee Charter ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 and recommendation such that it is consistent with the Organizational Core Purpose policies and the Commission Committees policy. 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 50 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Governance Policies Policy Reference: Policy Title: G.2g2 Financial Reserves & Investment Committee Charter 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 Robert’s Rules of Order Newly Revised for all situations to which they are applicable and are not inconsistent with ERMU’s bylaws, policies, and any 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 Purpose policies and the Commission Committees policy. 51 ERMU Commission Policy – G.2g2 Financial Reserves & Investment Committee Charter ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 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 an annual 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 52 ______________________________________________________________________________ Page 1 of 3 COMMISSION POLICY Section: Category: Governance Governance Policies Policy Reference: Policy Title: G.2g3 Information Security Committee Charter 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 (City) operations. Although governed autonomously, this shall be an advisory Committee to both the ERMU and the City. 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, a field manager, an administrative manager, and an information 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 ERMU’s Committee member representatives annually following the Commission election of officers during the March Regular Commission meeting. The Council shall appoint the City’s representatives annually in March. 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 Robert’s Rules of Order Newly Revised for all situations to which they are applicable and are not inconsistent with ERMU’s bylaws, policies, and any special rules of order that the Commission may adopt; and similarly, 53 ERMU Commission Policy – G.2g3 Information Security Committee Charter ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 3 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 the City. SPECIFIC DUTIES: 1. Policies and Procedures: Assist ERMU and the City 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 the City. 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-date perspective on related risks and industry’s best practice risk mitigation methods. 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 clear direction and unity in ERMU and City leadership teams’ support for approved 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. 54 ERMU Commission Policy – G.2g3 Information Security Committee Charter ______________________________________________________________________________ ______________________________________________________________________________ Page 3 of 3 TERMINATION: The Committee shall exist as a joint effort between ERMU and the City until at such time either the Commission or Council dissolve the joint nature of the Committee. POLICY HISTORY: Established August 8, 2017 Revised November 12, 2019 55 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Governance Policies Policy Reference: Policy Title: G.2h Independent Advisors to the Commission PURPOSE: The Commission expects to engage the services of independent advisors in order to effectively perform its functions. With this policy, the Commission establishes and communicates the purposes for which it may engage independent advisors and the process by which it engages those advisors. POLICY: Independent advisors are engaged to assist the Commission in its governance of ERMU. The Commission will engage independent advisors in the same manner that it expects management to engage independent professional service providers for other purposes. Only decisions of the Commission acting as a legally authorized decision-making body are binding on the independent advisors. Independent advisors; however, are expected to interact with the General Manager, management, and staff employees in the course of their work, and may have accountability to the General Manager. Consistent with this general statement: 1. The Commission may request and receive recommendations from the General Manager; however, the Commission will select its independent advisors and the independent advisors will have a direct reporting relationship and accountability to the Commission. 2. When engaging the services of any independent advisor, the Commission will comply with all applicable legal requirements, appropriate policies and procedures for requesting, receiving and evaluating proposals, and for contracting with professional service providers. Fees for the Commission’s independent advisors will be paid from the Commission’s budget account for Governance. 3. The Commission will engage the services of General Counsel to provide required or appropriate legal advice and assistance on all matters related to the functions and 56 ERMU Commission Policy – G.2h Independent Advisors to the Commission ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 responsibilities of the Commission (individually and collectively) and with respect to actions taken or contemplated by the Commission. General Counsel will also be available to the General Manager for legal advice and assistance to management. 4. The Commission will engage the services of a recognized certified public accountant to conduct required independent financial audits of records and accounts and to provide required or appropriate financial and accounting advice and assistance with respect to specific actions taken or contemplated by the Commission. 5. The Commission may engage the services of other independent advisors as may be required or appropriate to the effective discharge of its responsibilities. These other independent advisors may include: a. Financial advisors to provide required or appropriate financial advice and assistance related to financial planning, issuance of debt, cost recovery, and other specific actions taken or contemplated by the Commission. b. Special legal counsel to provide required or appropriate legal advice and assistance with respect to specific actions taken or contemplated by the Commission. c. Consulting engineers to provide required or appropriate engineering and technical advice and assistance with respect to specific actions taken or contemplated by the Commission. POLICY HISTORY: Adopted May 9, 2017 57 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Commission – Management Connection Policies Policy Reference: Policy Title: G.3 Commission – Management Roles PURPOSE: With this policy, the Commission describes the general nature of its working relationship with the General Manager and distinguishes its role as the governing body from the role of the General Manager, management and staff. POLICY: The Commission will work with the General Manager as a leadership team. The Commission’s principal role is to: 1. Hire a competent General Manager and support the General Manager by routinely engaging in collaborative performance planning and evaluation. 2. Develop and adopt policies for the governance of ERMU that set forth the results ERMU is to achieve and place limits on the authority of the General Manager to determine how those results are achieved. 3. Review and approve major plans, programs and budgets proposed by the General Manager (as required by the Commission’s Delegation to Management policies). 4. Routinely monitor organizational performance and accept accountability for that performance. The General Manager’s principal role, with the support of management and staff employees, is to: 1. Support the Commission in its development of policies. 2. Carry out the Commission’s policies. 58 ERMU Commission Policy – G.3 Commission – Management Roles ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 3. Keep the Commission fully informed about compliance with the Commission’s policies and the outcomes of those policies, including the achievement of results and the use of resources. 4. Manage and operate ERMU, accepting accountability for the performance of the organization in relation to the Commission’s policies. POLICY HISTORY: Adopted May 9, 2017 59 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Commission – Management Connection Policies Policy Reference: Policy Title: G.3a Controlling Authority PURPOSE: With this policy, the Commission affirms that its authority to direct the General Manager resides only in an official action supported by the affirmative vote of a majority of a quorum of the Commission members during either a regular or a called special meeting of the Commission. POLICY: Only decisions of the Commission acting as a legally authorized decision-making body are binding. Consistent with this general statement: 1. An individual Commission member or Commission committee cannot make decisions or recommendations, nor issue directives that are binding except in unusual instances when the Commission has acted to specifically authorize an individual Commission member or Commission committee to exercise such authority. This applies both during and outside of called meetings of the Commission. 2. When individual Commission members or Commission committees request information or assistance from management without first obtaining Commission authorization to do so, the General Manager may: a. Respond as requested, notifying all other Commission members of the request and the response provided. The General Manager may, at his or her sole discretion, provide copies to all other Commission members of any documents provided in the response. (Note: Other Commission members may request copies of any documents provided in the response and the General Manager is expected to provide them promptly). b. Refer the request to the Commission for consideration and direction before taking any action. The General Manager is not required to explain the basis for referring a request, but such basis could include a determination that the request may be sensitive or disruptive, or that it would require the expenditure of a material amount of staff time or funds that were not previously budgeted and scheduled for that purpose. (Note: the 60 ERMU Commission Policy – G.3a Controlling Authority ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 Commission member making a request for information may also refer it to the Commission for consideration and direction, if the General Manager did not respond to the satisfaction of the Commission member.) POLICY HISTORY: Adopted May 9, 2017 61 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Commission – Management Connection Policies Policy Reference: Policy Title: G.3b Delegation of Authority to the General Manager PURPOSE: With this policy, the Commission describes the manner in which it delegates authority to the General Manager. POLICY: The Commission will provide direction to management only through the General Manager or through a temporary successor authorized by the General Manager or the Commission for a specific length of time. Except in unusual circumstances, the Commission will give direction by means of Commission action recorded in meeting minutes, by resolution, or by written policy that prescribes the results to be achieved as well as the actions and consequences to be avoided. The Commission will allow the General Manager to use any reasonable interpretation of its recorded actions, resolutions, or written policies. Consistent with this general statement: 1. The Commission will develop Authority and Purpose Policies, and Results Policies outlining high level priorities and instructing the General Manager to achieve certain results using the resources of ERMU that are made available through the approved Annual Business Plan (with budget). 2. The Commission will develop Commission-Management Connections Policies that establish the respective roles and responsibilities of the Commission and the General Manager. 3. The Commission will develop Delegation to Management Policies that limit the methods the General Manager (and, by further delegation, management) may employ to achieve the results required by the Commission. 4. The Commission will develop its Results Policies and Delegation to Management Policies methodically and by subject area, beginning with the broadest level and moving to more 62 ERMU Commission Policy – G.3b Delegation of Authority to the General Manager ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 focused levels, at the Commission’s discretion. The Commission will determine the level of policy definition and specification so that, once approved, Commission members are comfortable allowing the General Manager to interpret each policy without the Commission’s involvement (unless the General Manager requests Commission involvement). 5. As long as the General Manager uses a reasonable interpretation of the Commission’s Authority and Purpose Policies, Results Policies, and Delegation to Management Policies, the General Manager is authorized to establish all other management policies, make all decisions, develop all processes and procedures, take all actions, and establish all practices. 6. The Commission may, from time to time, change its Results Policies and Delegation to Management Policies, to allow the General Manager more or less latitude with respect to policy interpretation, decisions and actions. The Commission; however, will not use policy in this manner to reduce the latitude allowed a General Manager in situations where the person in that position is new or performing at an unacceptable level. As long as any particular policy is in place, the Commission will respect and support the General Manager’s reasonable interpretations, decisions and actions. POLICY HISTORY: Adopted May 9, 2017 63 ______________________________________________________________________________ Page 1 of 1 COMMISSION POLICY Section: Category: Governance Commission – Management Connection Policies Policy Reference: Policy Title: G.3c General Manager Accountability PURPOSE: With this policy, the Commission affirms that the General Manager is the only person directly accountable to the Commission. POLICY: The General Manager is the Commission’s only formal connection to the ERMU organization and is the only person directly accountable to the Commission for operating results and operational conduct. Additionally, the General Manager is accountable only to the Commission. From the Commission’s perspective, the authority and accountability of ERMU management and staff employees is inseparable from the authority and accountability of the General Manager. Consistent with this general statement: 1. The Commission as a body and the Commission members individually will never give instructions (direct or implied) to anyone other than the General Manager. 2. The Commission as a body and the Commission members individually will refrain from evaluating, either formally or informally, the job performance of any employee other than the General Manager. POLICY HISTORY: Adopted May 9, 2017 64 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Commission – Management Connection Policies Policy Reference: Policy Title: G.3d Monitoring Performance of the General Manager PURPOSE: With this policy, the Commission describes the manner in which it will routinely monitor the performance of the General Manager. POLICY: The Commission will ensure that it routinely and thoroughly monitors the General Manager’s job performance. The performance of the General Manager will be measured by comparing ERMU’s accomplishments with the Commission’s Results Policies and by comparing ERMU’s operational conduct with the specific delegations and limits established by the Commission’s Delegation to Management Policies, and consistent with Authority and Purpose Policies. Consistent with this general statement: 1. Monitoring is the periodic review of objective, relevant, timely and accurate information that allows the Commission to determine the extent to which Commission policies are being carried out. Information that does not do this is not considered monitoring information and should not be a focus of the Commission. 2. The Commission will acquire the monitoring information it needs by either or both of the following methods: a. By internal report, in which the General Manager provides compliance information directly to the Commission. b. By external report, in which an objective external party, selected by the Commission, gathers information for the Commission. At the Commission’s discretion, the external party may also evaluate compliance with Commission policies and report this information to the Commission. 65 ERMU Commission Policy – G.3d Monitoring Performance of the General Manager ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 3. Regardless of the method(s) employed, the standard for compliance with any policy shall be whether or not the General Manager made a reasonable interpretation of the Commission policy being monitored following its adoption. 4. The Commission will regularly monitor compliance with Results Policies and Delegation to Management Policies according to the schedule approved by the Commission in its biennial Governance Agenda. The General Manager will recommend a schedule using monitoring methods and frequencies. The Commission may monitor a policy at any time by any method. POLICY HISTORY: Adopted May 9, 2017 66 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Commission – Management Connection Policies Policy Reference: Policy Title: G.3e General Manager Performance Planning and Evaluation PURPOSE: With this policy, the Commission describes the manner in which it will routinely establish performance expectations for and evaluate the performance of the General Manager. POLICY: During the second quarter of each fiscal year, the Commission will evaluate the General Manager’s performance for the preceding fiscal year and establish performance expectations for the next fiscal year. The General Manager’s performance will be evaluated by comparing the organization’s results and methods, as well as the General Manager’s personal performance and conduct in relation to Commission policies and other expectations, as established and communicated by the Commission for the time period that coincides with the immediately preceding fiscal year. The Commission will conduct its evaluation within the boundaries of the Commission’s policies and it’s Employment Agreement with the General Manager. The Commission is responsible for the performance of the General Manager and may evaluate the General Manager’s performance at any time the Commission determines that it is in the best interests of ERMU to do so. The evaluation of the General Manager will be based on: 1. ERMU’s operational performance and conduct in comparison to the Commission’s Results Policies and Delegation to Management Policies, and consistent with Authority and Purpose Policies. 2. ERMU’s operational and fiscal performance and conduct in comparison to the ERMU Strategic Plan, Annual Business Plan (with budget), Financial Plan, and any other critical success factors established by the Commission. The General Manager shall propose with each Annual Business Plan the specific performance criteria that represent his/her reasonable interpretation of the Commission’s performance expectations for the following fiscal year. The Commission and General Manager will discuss and agree in advance on the criteria to be used. 67 ERMU Commission Policy – G.3e General Manager Performance Planning and Evaluation ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 3. The General Manager’s personal performance and conduct in interactions with the Commission, the Commission’s independent advisors, customers, elected officials, employees, regulators, and representatives of other allied organizations or any other area deemed appropriate by the Commission and communicated to the General Manager. POLICY HISTORY: Adopted May 9, 2017 68 ______________________________________________________________________________ Page 1 of 1 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4 Corporate Limitations PURPOSE: With this policy, the Commission describes, at a high level, the limits that it places on the General Manager to determine the methods by which management and staff conform to Commission policies in the management and operation of ERMU. Other policies in this series place more specific limits on the prerogatives of the General Manager with respect to specific functions of management POLICY: The General Manager shall not cause or intentionally allow any practice, decision, action or circumstance within the ERMU organization that is unlawful, imprudent, or in violation of commonly accepted business and professional ethics. POLICY HISTORY: Adopted June 13, 2017 69 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4a Succession of Leadership PURPOSE: With this policy, the Commission intends to ensure ERMU’s continuity of leadership, both long- term and short-term. More specifically, the Commission intends to protect ERMU from the sudden loss of services by the General Manager, other executive managers, and any employee who performs functions that are critical to the organization. The Commission also intends to prepare employees at all levels of the organization for increasing leadership responsibilities. POLICY: The General Manager shall establish, and at all times maintain current, a short-term plan for executive leadership and critical function succession under which two or more of his/her direct reports are designated and prepared to temporarily assume the responsibilities of Acting General Manager on short notice. Consistent with this general statement, the General Manager shall: 1. Keep the Commission informed about the content of his/her short-term plan for executive leadership and critical function succession. The General Manager’s plan for executive leadership succession shall include the designation of a primary and secondary successor, both of whom are acceptable to the Commission, and a written position description for Acting General Manager 2. Keep the Commission informed about his/her availability to perform the duties of the General Manager. 3. Not be absent from ERMU’s offices and/or otherwise unavailable for communication with the Commission and other management employees for more than three (3) consecutive business days without first having designated a temporary successor and informing both the Commission and management employees of that designation. 70 ERMU Commission Policy – G.4a Succession of Leadership ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 4. Not allow the General Manager and both his/her primary and secondary designated successors to travel together in the same vehicle or other public or commercial form of conveyance. The primary successor shall immediately assume the responsibilities of Acting General Manager upon receiving information that the General Manager is unable to fulfill his/her responsibilities or has been absent from corporate headquarters and/or otherwise unavailable for more than three (3) consecutive business days without having designated his or her temporary successor. In such event, the Acting General Manager shall formally notify the Commission of his/her assumption of responsibilities, after which the Commission President shall convene a special meeting to confirm the appointment of the Acting General Manager and to either confirm or modify the position description for Acting General Manager. Additionally, the General Manager shall establish, and at all times maintain current, and effectively implement a long-term plan for leadership succession that is intended to: 1. Prepare all employees to grow in their leadership capabilities and responsibilities. 2. Ensure that the loss of services from any one employee does not impair the performance of the organization’s critical functions. 3. Identify capable and willing people for future critical leadership positions and intentionally develop them in their leadership competencies and responsibilities. 4. Identify and communicate to the Commission any critical human resource needs of the organization that are not adequately met with available resources, along with steps that he/she is taking to meet those needs. POLICY HISTORY: Adopted June 13, 2017 71 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4b Information and Support to the Commission PURPOSE: With this policy, the Commission communicates its expectations for information and support from the General Manager. POLICY: The General Manager shall not permit the Commission to be uninformed or unsupported in its work. Consistent with this general statement, the General Manager shall: 1. Inform the Commission in a timely manner about ERMU’s significant successes or shortcomings with respect to Commission policies, goals and other directives. 2. Submit timely, accurate, and understandable financial, operating and other monitoring data required by the Commission in a form that directly relates to the provisions of the Commission policies being monitored. (See Monitoring Performance of the General Manager Policy) 3. Report in a timely manner any actual or anticipated instance of management noncompliance with Commission policies. 4. Inform the Commission about significant events and situations that are directly relevant to the Commission’s policies, especially any changes which may materially alter assumptions that the Commission has used previously to establish policy and make other significant decisions. 5. Advise the Commission if, in the General Manager’s opinion, the Commission is not in compliance with its own Governance Policies and Commission-Management Connection 72 ERMU Commission Policy – G.4b Information and Support to the Commission ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 Policies, especially where Commission actions or behavior (individual or collective) are detrimental to the working relationship between the Commission and the General Manager. 6. Advise the Commission if, in the General Manager’s opinion, the Commission is unfocused in its work or out of step with ERMU’s strategic framework (vision, core purpose, core values, mission and strategic objectives) as stated in the Authority and Purpose Policies. 7. Bring before the Commission in a timely manner as many internal and external points of view, issues and alternatives as the Commission may need to deliberate effectively and make fully informed decisions. 8. Bring to the Commission, in support of the Commission’s deliberations and decision-making, the recommendation(s) of management, the rationale for those recommendations, and the process(es) by which those recommendations were developed. 9. Present information that is clear, concise, and in a form that differentiates among the purposes for which it is intended (i.e. monitoring, decision-making, business context, education, etc.). (See Agenda Planning Policy). 10. Provide appropriate methods and resources for official communications and other functions of the Commission, its officers, committees and independent advisors. 11. Communicate and work with the Commission as a whole, either directly or, as appropriate, through its officers and committees. 12. Supply for the agenda of any Commission meeting all matters that are required by law or contract to be approved by action of the Commission. POLICY HISTORY: Adopted June 13, 2017 73 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4c Strategic and Business Planning PURPOSE: With this policy, the Commission affirms the importance of strategic and business planning and sets forth its expectations for the General Manager in terms of the effective development, implementation, monitoring, and updating of the Commission’s approved Strategic Plan, Financial Plan and Business Plan/Budget. POLICY: The General Manager shall not allow ERMU to operate without the following Commission approved plans: 1. A Strategic Plan that provides strategic direction for a period of not less than five (5) future fiscal years in terms of high-level elements such as vision, core purpose, core values, mission, key result areas and broadly stated strategic objectives that are intended to achieve the organizational outcomes contained in the Commission’s Authority and Purpose Policies. 2. A Financial Plan covering not less than five (5) future fiscal years (see Financial Planning and Budgeting Policy). 3. A Business Plan/Budget that supports accomplishment of the Strategic Plan and sets forth specific operating and financial results in terms of elements such as actions and outcomes, budgeted financial and other resource requirements, and projected financial statements. Consistent with this general statement, the General Manager shall: 1. Provide the overall direction, leadership, education, and resources needed to engage the Commission, management employees, key staff employees, and other key stakeholders in an effective strategic planning process. 74 ERMU Commission Policy – G.4c Strategic and Business Planning ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 2. Present to the Commission for approval a recommended Strategic Plan, a recommended Financial Plan, and a recommended Business Plan/Budget, as well as any subsequent changes to the approved plans that are needed to keep them relevant and effective. The Strategic Plan, as approved by the Commission, will include the high-level elements identified above. Consistent with the strategic direction approved by the Commission, management will implement, monitor, and periodically report to the Commission the status of the Strategic Plan through the use of goals, action plans, and performance measures. The Strategic Plan, Financial Plan, and Business Plan shall not materially deviate from the Commission’s Authority and Purpose Policies. 3. Implement, if the Commission does not approve in a timely manner, the recommended Strategic Plan, Financial Plan, and Business Plan/Budget, as required to effectively manage the ERMU organization and utility enterprises. 4. Use the Strategic Plan as a guide and point of reference for preparing and updating the Financial Plan, Business Plan/Budget and other business management tools. 5. Communicate key elements of the Strategic Plan, Financial Plan, and Business Plan/Budget to ERMU’s Commission, customers, employees, and other stakeholders at appropriate intervals to keep them well-informed about ERMU’s operating environment, strategic direction and desired business and operational performance. 6. Report key business results and other operational outcomes to ERMU’s Commission, customers, employees, and other stakeholders at appropriate intervals, using the Strategic Plan and Business Plan/Budget as a point of reference. Note: The ERMU Commission has established strategic and business planning as an important part of its own Governance Agenda (see Agenda Planning Policy). During the first quarter of each fiscal year (January - March), the Commission will review the most current adopted version of ERMU’s Strategic Plan and Financial Plan, along with the results of the Business Plan/Budget for the preceding fiscal year. The Commission and Management will prepare, and the Commission will adopt an updated Strategic Plan and Business Plan/Budget before the end of each calendar year. During the second and third quarters of every third year, the Commission and Management will work together to re-develop, and the Commission will adopt a Strategic Plan for at least five (5) future fiscal years. Management will prepare, and the Commission will adopt during the fourth quarter (October – December) of each year a Business Plan/Budget that includes management’s revenue/expense budget and projections, including relevant assumptions for two (2) future fiscal years. POLICY HISTORY: Adopted June 13, 2017 75 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4d Customer Interests PURPOSE: With this policy, the Commission communicates its expectations for the General Manager’s understanding of customer needs and management/staff employee interaction with customers and customer representatives. POLICY: In all ERMU interactions with customers and customer representatives, the General Manager shall not intentionally allow situations, processes, actions, behaviors or attitudes that are unsafe, undignified, inattentive, disrespectful or unresponsive to customer needs and requests, or otherwise in conflict with the organizational values advocated by the Commission. (See Organizational Values Policy). Consistent with this general statement, the General Manager shall: 1. Keep the Commission and management/staff employees informed about customer expectations for and satisfaction with ERMU’s services and conduct. 2. Keep the Commission and management/staff employees informed about current and emerging customer needs that are relevant to ERMU’s core purpose and mission. 3. Provide relevant information to customers about ERMU services, using all appropriate media. 4. Keep customers reasonably informed about current and emerging issues, regulations, policies or practices that may affect their ERMU utility services and/or their use of those services. 5. Provide customers with convenient and secure access to their personal or business account information and to other information that will enable them to be informed and efficient 76 ERMU Commission Policy – G.4d Customer Interests ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 consumers of the services that ERMU provides. 6. Comply with all applicable legal and regulatory requirements for collecting, reviewing, transmitting, and storing customer information to protect it against improper access and use, damage or loss, and unauthorized destruction. (See Legal & Regulatory Compliance Policy). 7. Keep customers reasonably informed about potential service outages, emergency preparedness, safe use practices, and service restoration status. 8. Provide customers with various means to express their service needs, concerns, or ideas to ERMU. 9. Promptly handle identified customer issues and utilize a dispute resolution process, if necessary, through which any unresolved issues are brought to the attention of the Dispute Resolution Committee for resolution. POLICY HISTORY: Adopted July 11, 2017 77 G.4d1 – Customer Data Privacy 1.0 Customer Privacy Policy A. Elk River Municipal Utilities recognizes our responsibility to keep information about our customers secure and confidential. We are committed to using our best efforts to protect our customers’ private information and have taken the following steps to ensure that our customers’ privacy is protected. 2.0 Information We Collect A. Elk River Municipal is the sole owner of the information collected from our customers. We collect personally identifiable information, such as name, address, account number, phone number, financial information, social security number, email addresses, etc. that is required for business purposes. This information will be maintained as confidential business information for which access is strictly limited. We do not sell or rent any information to others. We do not disclose any non-public personal information about our customers to any, except as permitted by law. 3.0 Security A. We restrict access to non-public personal information about our customers to those employees who need to now specific information to provide products or services to our customers. Our employees are trained to respect customer privacy and to access customer information only when they have a business reason to know information. We maintain physical, electronic, and procedural safeguards that comply with federal standards to guard our customers’ non-public personal information. 4.0 Notification A. This policy will be provided to customers as requested. Changes to this privacy policy will occasionally be updated to reflect company and customer needs. Customers will only be notified of policy changes when the changes are substantial and affect current information collection and use policies as described above. 78 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4e Core Customer Services PURPOSE: With this policy, the Commission sets forth its expectations for the General Manager concerning core customer services and related business opportunities. POLICY: The ERMU Commission expects the General Manager to ensure that customers receive safe, reliable, cost effective and quality long term electric and water utility services that directly support ERMU’s core purpose and mission as stated in the Organizational Core Purpose Policy and Mission Statement Policy. ERMU’s “core customer services” are retail electric and water services. Consistent with this general statement, the General Manager shall: 1. Identify and keep the Commission informed about the full range of business opportunities that are reasonably available to ERMU for the provision of its core customer services, bringing appropriate recommendations to the Commission for consideration and approval. 2. Keep him/herself and others in the organization informed about electric and water services trends, technologies, and practices through independent research, membership in appropriate organizations, and participation in appropriate industry workshops, seminars, and other similar opportunities. 3. Actively participate in relevant associations and advocacy groups, and stay informed about the national, regional, and state electric power and water supply markets, market participants, market management, and related legal and regulatory initiatives that may directly affect the interests of ERMU customers. Work to mitigate regulatory risks by acting on behalf of the interests of ERMU and its customers. 79 ERMU Commission Policy – G.4e Core Customer Services ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 4. Maintain professional and productive relationships with utility service providers, regulators, professional experts and others with whom ERMU must collaborate to create and execute successful business opportunities. 5. Clearly articulate and consistently demonstrate a high value proposition for customers who receive ERMU’s core customer services. 6. Establish core customer service standards for reliability, cost, quality, regulatory compliance, and other factors important to ERMU’s customers. 7. Routinely monitor and keep the Commission informed about ERMU’s overall performance with respect to its core customer services standards, as well as ERMU’s business strategies and initiatives to improve those services. The General Manager is expected to look for and consider new business opportunities but shall not implement any new core customer services or pursue any related business opportunities without legal authority and clear direction to do so from the Commission- approved ERMU Strategic Plan, Annual Business Plan or specific authorization of the Commission. POLICY HISTORY: Adopted July 11, 2017 80 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4f Employee Interests PURPOSE: With this policy, the Commission sets forth its expectations for the General Manager concerning the employment, termination of employment, management, compensation and treatment of employees. POLICY: In all ERMU interactions with and among the employees of ERMU, the General Manager shall not intentionally allow situations, processes, actions, behaviors or attitudes that are unsafe, illegal, undignified, inattentive or unresponsive to employee needs or requests, or otherwise in conflict with the organizational values advocated by the Commission. (See Organizational Values Policy). Consistent with this general statement: 1. The General Manager shall not allow ERMU management or the Commission to be inadequately informed about, or fail to exercise reasonable judgment and discretion regarding appropriate and timely action on, any issue of material significance concerning employee safety and health, performance, satisfaction and morale, or employment policies and processes. 2. The General Manager shall not operate without an Employee Safety Manual. 3. The General Manager shall not operate without proactive management support for a safety culture that includes expected compliance with the Safety Manual, participation in ongoing safety training, consistent use of safe work practices and personal protective equipment, reporting of unsafe conditions and safety incidents/near misses, and accountabilities for safety at the organizational, work group, and individual level. 81 ERMU Commission Policy – G.4f Employee Interests ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 4. The General Manager shall not operate without documented employment policies, processes, and practices that have been adopted by the Commission and communicated to employees in the form of an ERMU Employee Handbook. 5. The General Manager shall exercise reasonable judgment and discretion to avoid operating ERMU in material contravention of the Commission-approved employment policies, processes, and practices or any applicable employment law or regulation. 6. The General Manager shall adopt a reasonable process for notifying employees of material changes to the ERMU Employee Handbook and other applicable employee policies. 7. The General Manager shall adopt a reasonable process for conducting and documenting annual employee performance planning and evaluation in a manner consistent with the nature of each employee’s duties. 8. Within the financial limitations of the budget approved by the Commission, the General Manager shall provide employees with safe working conditions, adequate facilities and equipment, and other support needed to enable high levels of employee performance, job satisfaction, and career development. 9. The General Manager shall not use methods of collecting, reviewing, transmitting, or storing employee information that fail to protect the information against improper access and use, damage or loss, or unauthorized destruction. POLICY HISTORY: Adopted August 8, 2017 82 January 2020 ERMU Commission Policy – G.4f1 ERMU Employee Handbook EMPLOYEE HANDBOOK 13069 Orono Parkway ELK RIVER, MN 55330 Office: 763-441-2020 83 i January 2020 Table of Contents RECEIPT AND ACKNOWLEDGMENT .................................................................... iv 1. IMPORTANT NOTICE ABOUT THIS HANDBOOK ................................... 1 PERSONNEL RECORDS................................................................................... 1 ACCESS TO PERSONNEL RECORDS ........................................................... 1 GENERAL WORKPLACE POLICIES ........................................................................ 4 2. OPEN DOOR POLICY ....................................................................................... 4 3. EQUAL EMPLOYMENT OPPORTUNITY .................................................... 5 4. DISABILITY ACCOMMODATION................................................................. 5 5. HARASSMENT PROHIBITED ......................................................................... 6 Definitions of Sexual and Other Forms of Harassment ................................... 6 Scope of Policy ...................................................................................................... 7 Procedure for Reporting Harassment ................................................................ 7 Confidentiality – No Retaliation ......................................................................... 8 Questions About This Policy ............................................................................... 8 6. BUSINESS CONDUCT ....................................................................................... 8 7. ETHICS, GIFTS AND CONFLICTS OF INTEREST ..................................... 9 8. EMPLOYMENT OF RELATIVES ................................................................... 9 9. WHISTLEBLOWERS ...................................................................................... 10 10. WAGE INFORMATION .................................................................................. 10 11. WEAPONS PROHIBITED ............................................................................... 11 12. EMPLOYEE SAFETY ...................................................................................... 11 13. DRUG TESTING ............................................................................................... 12 14. EXPOSURE TO HAZARDOUS SUBSTANCES ........................................... 12 15. SOLICITATION AND DISTRIBUTION........................................................ 13 Non-Employees ................................................................................................... 13 Employees ........................................................................................................... 13 Related Policies................................................................................................... 14 Violation of This Policy By an Employee ......................................................... 14 16. ELECTRONIC COMMUNICATIONS: INTERNET, E-MAIL, AND SOCIAL MEDIA ............................................................................................... 14 General Guidelines Applicable to Electronic Communications, Including Communications Over Social Media .............................................. 15 Bandwidth Conservation ................................................................................... 16 17. SUPPLEMENTAL EMPLOYMENT .............................................................. 16 Fire Department Participation ......................................................................... 17 18. REPORT OF PERSONNEL CHANGES ........................................................ 17 19. ATTENDANCE.................................................................................................. 17 20. DISCIPLINE, DISMISSAL & LAY OFF ....................................................... 18 Discipline ............................................................................................................. 18 Probation and Dismissal .................................................................................... 18 Layoff/Reduction in Force ................................................................................ 19 84 ii January 2020 21. JOB POSTING ................................................................................................... 19 22. PERFORMANCE REVIEWS .......................................................................... 19 Performance Metrics Incentives ....................................................................... 20 WAGES AND HOURS .................................................................................................. 20 23. WORK HOURS AND OVERTIME ................................................................ 20 24. EMPLOYEE CLASSIFICATIONS ................................................................. 20 Regular Full-Time Employee ............................................................................ 21 Regular Part-Time Employee ........................................................................... 21 Regular Field Worker........................................................................................ 21 Exempt Employee .............................................................................................. 21 Non-Exempt Employee ...................................................................................... 21 Utilities Manager ................................................................................................ 22 Temporary Worker ........................................................................................... 22 25. TIME REPORTING POLICY ......................................................................... 22 General Policy .................................................................................................... 22 Recording Time .................................................................................................. 22 Frequency ........................................................................................................... 23 Time Deductions for Breaks ............................................................................. 23 Ensuring Accuracy of Timekeeping Reports .................................................. 23 Special Note About Work Performed Outside of Scheduled Times and Places ........................................................................................................... 24 Working Remotely ............................................................................................. 24 26. FAIR PAY POLICY .......................................................................................... 24 All Employees ..................................................................................................... 25 Protection of Employee Rights ......................................................................... 25 Record Your Time And Review Your Pay Stub ............................................. 25 How to Raise a Question or Concern about your Pay or a Payroll Deduction ............................................................................................................ 25 Regular Attendance is an Essential Job Function and Your Attendance Record is a Performance Issue ..................................................... 26 Non-Exempt Employees .................................................................................... 26 On Call Time For Non-Exempt Employees ..................................................... 26 Exempt Employees ............................................................................................. 27 Salary Basis of Compensation .......................................................................... 27 Attendance and Recording Time for Exempt Employees .............................. 27 On Call Time For Exempt Employees ............................................................. 27 Deductions from an Exempt Employee’s Salary............................................. 27 Important Definitions ........................................................................................ 28 Permissible Deductions from Salary ................................................................ 28 Impermissible Deductions from Salary. .......................................................... 29 Permissible Deductions from An Exempt Employee’s Leave Bank. ............. 29 Questions or Concerns about This Fair Pay Policy ........................................ 29 27. CALL OUT TIME: REGULAR FIELD WORKERS .................................... 29 28. ON-CALL ........................................................................................................... 30 Regular Field Workers. ..................................................................................... 30 85 iii January 2020 Other On-Call Arrangements ........................................................................... 31 29. ELECTRIC RE-CONNECT TIME ................................................................. 33 30. STORM PAY ...................................................................................................... 33 31. LEAD PAY DIFFERENTIAL .......................................................................... 33 32. PAYCHECK DEDUCTIONS ........................................................................... 33 33. PAYCHECKS .................................................................................................... 34 34. NIGHTWORK REST TIME ............................................................................ 34 35. TRAVEL AND TRAINING TIME .................................................................. 34 BENEFITS ...................................................................................................................... 36 36. GENERAL BENEFITS ..................................................................................... 36 37. VACATION ........................................................................................................ 36 38. PURCHASED VACATION TIME (PVT)....................................................... 38 39. PAID SICK LEAVE .......................................................................................... 39 40. PAID HOLIDAYS ............................................................................................. 40 41. EMPLOYEE CLOTHING ................................................................................ 40 42. HEALTH CARE SAVINGS PLAN ................................................................. 41 43. 457 DEFERRED COMPENSATION .............................................................. 42 Leave Credit In Lieu Of Compensation........................................................... 42 44. HEALTH INSURANCE COVERAGE ........................................................... 43 45. DENTAL INSURANCE .................................................................................... 43 46. LONG-TERM DISABILITY ............................................................................ 43 47. LONG TERM CARE INSURANCE ................................................................ 43 48. LIFE INSURANCE ........................................................................................... 44 49. VISION INSURANCE....................................................................................... 44 50. HOME COMPUTER LOAN POLICY ........................................................... 44 51. EDUCATIONAL ASSISTANCE ..................................................................... 44 LEAVES OF ABSENCE ............................................................................................... 46 52. PARENTING LEAVE ....................................................................................... 46 53. MINNESOTA SICK FAMILY MEMBER OR SAFETY LEAVE ............... 47 54. SCHOOL ACTIVITIES LEAVE POLICY..................................................... 48 55. BONE MARROW AND ORGAN DONATION LEAVE .............................. 48 56. NATIONAL GUARD AND RESERVE LEAVE ............................................ 48 57. MILITARY LEAVE FOR UNIFORMED SERVICE.................................... 49 58. JURY/WITNESS DUTY LEAVE .................................................................... 49 59. PERSONAL LEAVE DAY ............................................................................... 50 60. BEREAVEMENT LEAVE ............................................................................... 50 61. GENERAL LEAVE ........................................................................................... 50 62. VOTING LEAVE; SERVICE AS ELECTION JUDGE ................................ 50 63. PAID LEAVE DONATION .............................................................................. 51 RECEIPT AND ACKNOWLEDGMENT ................................................................... 54 GP:4825-6370-3216 v3 86 iv January 2020 RECEIPT AND ACKNOWLEDGMENT (EMPLOYEE REFERENCE COPY) By signing this receipt, I acknowledge that I have received a copy of the Elk River Municipal Utilities Employee Handbook (the “Handbook”). This Handbook and the policies contained or referenced in the Handbook supersede and replace previously-issued handbooks, contrary oral or written statements of employment policy, and contrary employment practices. I understand that the Employee Handbook may be amended at any time, with or without notice. I understand that I do not have a protected property interest in my employment with the Utilities. I also understand that neither this Handbook nor any provision in it creates a contract of employment for any particular duration between the Utilities and me. I acknowledge that it is my responsibility to become and remain informed about the employment policies and practices of the Utilities and to abide by the rules, regulations, standards and policies of the Utilities, including those contained in this Handbook. I also understand that any violation by me of the Utilities’ rules, regulations, policies, practices, or standards is just cause for discipline, up to and including termination of my employment. Date Print or Type Name Employee Signature GP:4825-6370-3216 v3 87 1 January 2020 1. IMPORTANT NOTICE ABOUT THIS HANDBOOK This Employee Handbook sets forth general policies of the Elk River Municipal Utilities (the “Utilities”) and is intended to help you get to know the Utilities and your responsibilities. The Handbook applies to all Utilities employees. The Utilities Commission shall, in accordance with its statutory responsibility to manage the Utilities, be responsible for the maintenance and periodic revision of personnel policies, the Utilities’ personnel program, and this Handbook. The Utilities is committed to complying with all applicable law. If it comes to the attention of the Utilities that any provision of this Handbook is inconsistent with applicable law, the Utilities will comply with applicable law. Each employee of the Utilities is responsible to become and remain informed about the employment policies and practices of the Utilities and to abide by the rules, regulations, standards and policies of the Utilities, including those contained in this Handbook. This Handbook is designed to answer basic questions about the Utilities’ employment policies and procedures and to serve as a resource when you may need information. This Handbook cannot cover every situation, and the Utilities reserves the right to interpret and apply this Handbook and to address each situation as it determines appropriate. If you have any questions about the information in this Handbook, or if the Handbook does not appear to address your concern, please contact your immediate supervisor, another Utilities manager or Director, or the Utilities’ Human Resources Representative. No employee has a protected property interest in his or her employment with the Utilities, and nothing in or about this Handbook creates a contract of employment for any particular duration between the Utilities and any Employee. Violation of the Utilities’ rules, regulations, policies, standards or practices is just cause for discipline, up to and including termination of employment. PERSONNEL RECORDS Certain personnel records are required by law, and others are needed for the Utilities benefits and administrative purposes. Please be sure that all personal information in your file is accurate and up-to-date. If your personal information changes, please let Human Resources know. ACCESS TO PERSONNEL RECORDS Minnesota Law provides employees with certain rights relating to their personnel records. (See Minnesota Statutes Sections 181.960 to 181.965). The Utilities will comply with all requirements of the law. As a new or continuing employee of the Utilities you are put on notice of the following rights and remedies provided by Minnesota law. 88 2 January 2020 1. Employees, upon making a good faith written request, have the right to review their personnel record, as defined by the statute, up to once every six months. The record must be made available during the Utilities’ normal hours of operation, but not necessarily the employee's normal working hours, and at the employee's place of employment or other nearby location. The Utilities may require that the review be done in the presence of a Utilities representative. If employees so choose, they may make a written request for a copy of the personnel record which will be provided free of charge. 2. Former employees, upon making a good faith written request, have the right to receive a copy of their personnel record, as defined by the statutes, once each year after separation of employment for as long as the personnel record is maintained. The personnel records must be provided free of charge. 3. The Utilities must comply with the written request to review or provide a copy of the personnel records no later than seven working days after receipt of the written request, or no later than fourteen days after the receipt of the request if the personnel record is located outside of the state. 4. Employees and former employees have the right to submit a written position statement to the personnel record if the record contains any disputed information which the employee/former employee and the Utilities cannot agree to remove or revise. The written position statement may not exceed five written pages. The written position statement must be included along with the disputed information in the record for as long as the disputed information is maintained in the personnel record. A copy of the written position statement must also be provided to any other person who receives a copy of the disputed information from the Utilities after the written position statement is submitted. 5. If the Utilities and the employee have fully complied with the requirements related to disputed information, which are described in the paragraph immediately above, no communication by the employee or the Utilities of information contained in the personnel records may be made the subject of any common law civil action for libel, slander, or defamation, unless the Utilities communicates information with knowledge of its falsity or with reckless disregard of its falsity. 6. If the Utilities refuses to comply with the personnel record statutes, employees and former employees may bring a civil cause of action seeking to compel compliance and may recover actual damages plus costs for a violation of the statutes. In addition, the Minnesota Department of Labor & Industry can enforce the statutes and seek additional remedies and impose fines. 7. The Utilities may not retaliate against an employee for asserting the rights or seeking the remedies described above. Employers that retaliate against employees for exercising the rights or remedies described above may be liable for actual damages, back pay, reinstatement, costs, attorneys' fees and other make whole relief. In addition, the 89 3 January 2020 Minnesota Department of Labor & Industry may seek additional remedies and impose fines. 8. Information that properly belongs in the employee's personnel record, as defined in the statute, which is omitted from the personnel record provided by the Utilities to the employee may not be used by the Utilities in certain legal proceedings including administrative, judicial or quasi-judicial proceedings, unless the Utilities did not intentionally omit the information and the employee is given a reasonable opportunity to review the omitted information prior to its use. 90 4 January 2020 GENERAL WORKPLACE POLICIES 2. OPEN DOOR POLICY During your employment with the Utilities you may have certain concerns, such as an issue, suggestion, complaint, or question, about your job, your working conditions or some related matter. We strongly encourage you to raise any such concerns to Utilities management, so that we will have the benefit of your input on the matter and you will have the benefit of our best efforts to address any concerns you might have. In addition, you are required to report any conduct in the workplace or related to the Utilities that you believe is illegal, and to ask questions if you are not sure whether any particular conduct is legal or appropriate. Please also see the discussion under the Whistleblower Policy in this Handbook. Anyone who fails to report a known or suspected violation of law, regulation or internal policy may be considered to have committed an equally serious violation. That individual may be subject to corrective and/or disciplinary action, up to and including discharge. Under this Open Door Policy, we ask that you first raise any concern about your employment or the workplace with your immediate supervisor, if possible, and follow the steps below to have your concerns addressed. (Please note that issues of harassment should be addressed in accordance with the Utilities’ Harassment Policy in this Handbook.) 1. If you have any concern about any aspect of employment with the Utilities or with the Utilities’ business, please voice your concerns to your immediate supervisor as soon as possible. In most cases your immediate supervisor will be the person in the best position to address your concerns. The supervisor and the Utilities will make every effort to keep the matter confidential to the extent possible within the confines of the rights and obligations of you and the Utilities. 2. If for some reason you are not comfortable discussing your concerns with your immediate supervisor, choose another Utilities manager or Director with whom to discuss your concerns. Again, he/she will make every effort to keep the matter confidential to the extent possible. 3. Alternatively, or in addition, you may feel free to contact the Utilities’ Human Resources Representative. The Utilities strictly prohibits retaliation or reprisal of any kind against an employee who makes a good faith report regarding a known, or suspected, violation or concern regarding any law. 91 5 January 2020 3. EQUAL EMPLOYMENT OPPORTUNITY The Utilities pledges its best efforts to avoid discrimination against any employee or applicant for employment because of race, color, creed, religion, sex, sexual orientation, gender identity, age, national origin, marital status, familial status, pregnancy, genetic information, veteran status, status with regard to public assistance, disability, status as a patient enrolled in the state of Minnesota medical marijuana registry program or an enrolled patient's positive drug test for marijuana, or any other status that may be protected by state or federal law. The Utilities prohibits discrimination against and harassment of any employee or job applicant on the basis of protected class status. Employees who participate in discrimination in violation of this Policy are subject to discipline up to and including termination. Retaliation against any employee for making a good faith complaint under this Policy or for assisting with investigations of complaints made under this Policy is also strictly prohibited. Any person who feels that he/she has experienced discrimination or harassment in violation of law and/or this Policy should immediately contact his/her supervisor, the Human Resources Representative, and/or any Utilities manager or Director. Any manager or Director who receives a report under this policy is required to communicate the matter to the Human Resources Representative immediately. 4. DISABILITY ACCOMMODATION The Utilities is committed to providing reasonable accommodation, as appropriate, for qualified employees who have disabilities and for health conditions related to an eligible employee’s pregnancy, child-birth, or related health conditions. An employee who believes that he or she requires an accommodation due to a disability, pregnancy or child birth in order to perform the essential functions of his or her position should so advise his or her immediate supervisor, another Utilities manager or Director, or the Human Resources Representative. We ask that this request be made in writing. On receipt of a reasonable accommodation request, the Utilities will engage in an interactive process with the employee to determine if the employee is entitled to a reasonable accommodation and if one can be granted without creating an undue hardship for the Utilities. The Utilities reserves the right to request medical or other certification of the need for the accommodation in accordance with applicable law. Retaliation against any individual for making a good faith complaint under this Equal Employment Opportunity/Disability Accommodation policy, for opposing discrimination, or for participating in an investigation of any claim regarding discrimination or disability accommodation is strictly prohibited. 92 6 January 2020 If you feel that you have experienced such retaliation, you should follow the Reporting Procedure outlined above in the Open Door Policy. Any manager or Director who receives a report under this policy is required to communicate the matter to the Human Resources Representative immediately. 5. HARASSMENT PROHIBITED All Utilities employees have a right to work in an environment free from discrimination and intimidation, including harassment. The mission of the Utilities is best accomplished in an atmosphere of professionalism that in turn is supported by mutual respect and trust. The Utilities expects all employees to work toward this goal. Harassment based on a person’s race, color, creed, religion, national origin, sex, sexual orientation, gender identity, disability, age, marital status, genetic information, status with regard to public assistance, veteran status or any other protected class status may be unlawful and is strictly prohibited by the Utilities. Definitions of Sexual and Other Forms of Harassment Harassment consists of unwelcome conduct based on a person’s race, color, creed, religion, national origin, sex, sexual orientation, gender identity, disability, age, marital status, genetic information, status with regard to public assistance, veteran status, or any other protected class status that is interfering with your job performance, or creating an intimidating, hostile, or offensive work environment; or when submission to such conduct is: • a condition of employment; or • a basis for an employment decision affecting your job. One form of prohibited harassment is sexual harassment. Sexual harassment includes unwelcome sexual advances, requests for sexual favors, sexually motivated physical contact or other verbal or physical conduct or communication of a sexual nature that is interfering with your job performance, or creating an intimidating, hostile, or offensive work environment; or when submission to such conduct is made: • a condition of employment; or • a basis for an employment decision affecting your job. The Utilities prohibits sexual harassment of any type and in any form, including verbal, physical, and visual harassment. Some examples of conduct that may be sexual harassment include: • use of offensive or demeaning terms that have sexual connotations; 93 7 January 2020 • telling suggestive jokes or stories and conversations about sexual exploits, sexual preferences, and desires; • jokes, cartoons, pictures, objects or stories that have a sexual content; • threats, demands or suggestions that an employee’s work status, advancement or other terms and conditions of employment are contingent upon the employee’s toleration of or acquiescence to unwelcome sexual advances; • repeated, unwelcome sexual flirtations, propositions, or invitations to social engagements; or • unwelcome and objectionable physical contact or physical proximity. Scope of Policy The Utilities prohibits harassment of any type or form. This policy prohibits same sex harassment as well as harassment by members of the opposite sex. In addition, this policy prohibits sexual harassment and any other form of harassment by any individual, including Utilities managers, employees, co-workers, and third parties such as clients, elected officials, consultants, contractors or vendors who deal with the Utilities’ employees. Procedure for Reporting Harassment The Utilities wants to resolve any problems, but it can do so only if it is aware of them. The Utilities encourages any individual who believes he/she is being harassed to report any and all incidents of perceived harassment. If at any time you feel you are being harassed, you should immediately contact: your supervisor; and/or another Utilities manager or Director (including any superintendent of the Utilities or other representative as defined in Section 24 of this Handbook); and/or the Human Resources Representative. Any Utilities manager or Director or other person who receives a report under this policy is required to communicate the matter to the Human Resources Representative immediately. Your report of harassment may be oral or written; in either case, it is important that you state that your report is being made under this harassment policy, or that it concerns harassment. You may choose to whom you make the report; that choice, however, must be made from the list of individuals named above. 94 8 January 2020 The Utilities will promptly investigate harassment complaints as appropriate, and take other appropriate action. Any person who is found to have committed prohibited harassment will be subject to corrective action up to and including termination. Confidentiality – No Retaliation The Utilities will strive to protect the confidentiality of information the Utilities receives pursuant to this policy to the extent feasible and to the extent permitted by law. Retaliation against any individual for making a good faith complaint under this policy, for opposing harassment, or for participating in an investigation of any claim regarding harassment or inappropriate behavior is strictly prohibited. If you feel that you have experienced such retaliation, you should follow the Reporting Procedure outlined in this policy. Questions About This Policy Any questions about this policy or any related matter should be referred to the Human Resources Representative or any Utilities manager or Director. 6. BUSINESS CONDUCT In accepting employment with the Utilities, employees become its representatives to the public and are responsible for assisting and serving the customers for whom they work. An employee’s primary responsibility is to serve the customers of Elk River Municipal Utilities. The values of Elk River Municipal Utilities - ethics, open and honest communication, maintaining a positive workplace for employees, and serving customers – must guide our daily business activities. We strive for and take individual responsibility for ethical behavior – not only because it is the right thing to do, but also because it is a fundamental value in public services. Unacceptable conduct consists of any act or omission that, in the business judgment of Elk River Municipal Utilities, significantly departs from expected standards of behavior affecting the workplace. Some examples of unacceptable conduct include, but are not limited to: 1. Not performing assigned duties to the best of the employee’s ability at all times. 2. Not rendering prompt and courteous service to customers and the public at all times. 3. Not maintaining courtesy and professionalism towards other employees. 4. Unauthorized possession of Utilities property. 5. Falsifying timekeeping records or any other Utilities records. 6. Violating the Utilities’ work rules regarding alcohol and illegal drugs. 7. Violating the Utilities’ rules regarding Electronic Communications. 8. Fighting or threatening violence in the workplace. 9. Negligence or improper conduct leading to damage of employer-owned or customer-owned property. 95 9 January 2020 10. Insubordination or other disrespectful conduct, including failing to respond to warnings or directives to improve conduct or performance. 11. Violation of safety or health rules. 12. Sexual or other unlawful or unwelcome harassment. 13. Unauthorized possession of firearms or any object that could be considered a dangerous weapon (or other violation of the Utilities’ weapons policy). 14. Excessive absenteeism or any absence without reasonable notice. 15. Unauthorized disclosure of business secrets or confidential information. 16. Misuse of Utilities resources. 17. Any other behavior unacceptable to Utilities management or any conduct inconsistent with the policies in this Handbook or the rules, practices or standards of the Utilities. All employees have a personal responsibility to report any behaviors or practices that may constitute unacceptable conduct under this policy. Such conduct may risk our future success. If you have any concerns or questions, discuss them with the Human Resources Representative, your supervisor or any Utilities manager or Director. These concerns will be treated confidentially (to the extent possible) and with high priority. 7. ETHICS, GIFTS AND CONFLICTS OF INTEREST Utilities employees shall not use their official position for personal gain, engage in any business or transaction or have a financial interest, direct or indirect, which is in conflict with the proper performance of their official duties. Utilities employees must scrupulously avoid any activities that suggest a conflict of interest between their private interests and Utilities responsibilities. Employees shall not accept, either directly or indirectly, any money, property, gift, gratuity, reward, loan, fee, discount, or special consideration or special accommodation from any vendor or potential vendor to the Utilities or the City of Elk River, or that arises from or is offered because of their employment or any activity connected with their employment with the Utilities. 8. EMPLOYMENT OF RELATIVES It is generally the policy of the Utilities not to employ relatives or cohabitants of current employees or Utilities Commissioners. The purpose of this policy is to prevent conflicts of interest, the appearance of such conflicts, undue influence over an individual’s employment, and distraction from workplace productivity and safety. Occasional exceptions may be made to this general policy for legitimate business reasons in the discretion of the Utilities; provided, however, that in no event will relatives or cohabitants be permitted to be in a direct reporting relationship at the Utilities. “Relative” for purposes of this policy includes parent, marital or non-marital domestic spouse, sibling, child and step-child, grandparent, grandchild, parent-in-law, a person for whom the employee is a 96 10 January 2020 legal guardian, first cousin, sibling-in-law, son/daughter-in-law, niece/nephew, and aunt/uncle. 9. WHISTLEBLOWERS Pursuant to Minn. Stat. § 181.932, Elk River Municipal Utilities will not discharge, discipline, threaten, or otherwise discriminate against, or penalize an employee regarding the employee’s compensation, terms, conditions, location, or privileges of employment because: a. The employee, or a person acting on behalf of any employee, in good faith, reports a violation or suspected violation of any federal or state law or rule adopted pursuant to law to the Utilities or to any governmental body or law enforcement official; b. The employee is requested by a public body or office to participate in an investigation, hearing, inquiry; or c. The employee refuses the Utilities’ order to perform an action that the employee has an objective basis in fact to believe violates any State or Federal law or rule regulation adopted pursuant to law and the employee informs the Utilities that the order is being refused for that reason. The Utilities will make reasonable efforts to preserve as confidential the identity of an employee making a report under this policy to the extent feasible and consistent with applicable law. Any Utilities manager or Director who receives a report under this policy is required to communicate the matter to the Human Resources Representative immediately. Employees shall not make any statements or disclosures pursuant to this section knowing that they are false or that they are in reckless disregard of the truth. This section does not permit disclosures that would violate federal or state law or diminish or impair the right of any person to the continued protection of confidentiality or communications provided by common law. 10. WAGE INFORMATION Employees working for the Utilities, or living, in Minnesota have the right, under Minn. Stat. §181.172, to choose to disclose their own wages and to discuss another employee’s wages that have been voluntarily disclosed by that employee. In addition, regardless of location, employees who are not managers or supervisors also have these rights. An employee does not, however, have the right to disclose to a competitor of the Utilities or to any other person any wage information regarding other employees of the Utilities that he or she has learned in the course of performing job duties that involve access to confidential and private information about employees. 97 11 January 2020 The Utilities shall not require an employee to agree to give up his or her wage disclosure rights as a condition of employment, to sign any document that purports to deny an employee his or her wage disclosure rights, or take any retaliatory or other adverse employment action against an employee for exercising his or her wage disclosure rights. A copy of Minn. Stat. §181.172 can be obtained from Human Resources. §181.172 permits a civil cause of action for a violation of the statute and, in any such action, the court may, if found appropriate, order job reinstatement, back pay, restoration of lost service credit, and the expungement of adverse records. 11. WEAPONS PROHIBITED Elk River Municipal Utilities prohibits all employees from carrying or possessing firearms or other weapons while acting in the course and scope of their employment for the Utilities. Carrying or possessing firearms or weapons in Utilities vehicles is also prohibited. This policy extends to any situation in which employees are acting in the course and scope of their employment including while utilizing personal vehicles or attending work-related training. However, it is not a violation of this policy to lawfully carry a firearm in a personal vehicle that is lawfully encased and secured. Employees may be disciplined for violations of this policy up to and including termination of employment. A narrow exception is made to this policy, which is applicable only in connection with attendance at the Minnesota Municipal Utilities Underground School (“MMUA Underground School”) or the Minnesota Municipal Utilities Overhead School (“MMUA Overhead School”). Both of these events are held at the MMUA Training Center in Marshall, MN. An employee is not prohibited from carrying or possessing a firearm or other appropriate weapon in a situation where, in connection with his or her Utilities employment, the employee is using a Utilities vehicle while attending MMUA Underground School or MMUA Overhead School --- if and only if the employee’s participation in the MMUA Underground School or MMUA Overhead School includes a hunting or target-shooting activity, and provided that the employee is otherwise lawfully permitted to carry and possess a firearm. This exception applies only for the duration of the specific MMUA event and the period of the employee’s travel to and from the event. 12. EMPLOYEE SAFETY Safety is of paramount importance to the Utilities. All employees and managers must follow the regulations and laws of the State of Minnesota and rules of the Utilities governing the safety of employees and the public. If employees have questions or concerns about issues affecting safety, they should immediately discuss them with their supervisor, any Utilities manager or Director, the Human Resources Representative, or the relevant public safety authority. 98 12 January 2020 Employees are required to report accidents resulting in personal injuries and/or vehicle, equipment, or property damage to their supervisor immediately. Personal Injuries. Immediately report to your supervisor all accidents and injuries occurring within the course of your employment. The supervisor shall submit a First Report of Injury and a Supervisor’s Report of Injury Form to the Human Resources Representative within twenty-four (24) hours of receiving such report from you. - Vehicle, equipment, or property damage accidents. Immediately report to your supervisor all damage to Utilities property. The supervisor should submit documentation regarding the incident to the Utilities’ Finance Manager within twenty-four (24) hours of the time of the damage or accident. A copy of the Minnesota Motor Vehicle Accident Report must be submitted for all vehicle accidents. The Utilities will provide necessary safety equipment to employees. This may include: • One pair of safety glasses at the time of employment. The employee shall provide the correct prescription for the safety glasses. • The Utilities will pay the cost of new safety lenses, upon a change in the prescription. If needed, frames will be replaced as needed contingent upon supervisor approval. • Safety glasses that are broken or damaged while the employee is on the job will be replaced by the Utilities. 13. DRUG TESTING Applicants and Utilities employees are subject to certain kinds of drug testing in accordance with applicable law and Utilities policy. Separate policies are maintained for CDL drivers and for other employees and are distributed at the start of employment and periodically throughout employment. Copies of the Utilities’s drug testing policies are available upon request from Human Resources and the Administrations Director. 14. EXPOSURE TO HAZARDOUS SUBSTANCES Any employee routinely exposed to hazardous substances or harmful physical agents as defined in the Minnesota Employee Right to Know Act (MINN. STAT. § 182.675) shall be trained before being assigned or reassigned work exposing the employee to such substances or agents and shall be given training annually thereafter. Training shall include an explanation of how and where information about hazards is stored in the work place, how the hazards are labeled, and where to obtain specific information. The supervisor (or other designee) shall provide for such training and for compliance with the Minnesota Employee Right to Know Act, including the establishment of specific policies to insure compliance with the state law and regulations. An employee acting in good faith has the right to refuse 99 13 January 2020 to work under conditions which the employee reasonably believes present an imminent danger of death or serious physical harm to the employee. 15. SOLICITATION AND DISTRIBUTION The Utilities intends to establish and maintain a safe and productive business environment and to prevent interference with the work of its employees. This policy prohibits solicitation and the distribution of literature on Utilities property by non-employees. In addition, this policy addresses the limited circumstances under which solicitation and the distribution of literature on Utilities property by employees will be permitted, and it addresses the wearing and display of items, posting material on Utilities bulletin boards, and certain uses of the Utilities’ computer, email, and other resources. The term solicitation means any oral or electronic communication that encourages, advocates, demands, or requests any position or action or contribution of money, time, effort, personal involvement or membership in any organization or the sale or purchase of any merchandise or service. The term distribution means posting, handing out, or otherwise distributing any written material in hard copy. Non-Employees Non-employees of the Utilities are strictly prohibited from engaging on Utilities premises in: i) trespassing; ii) the solicitation of any person; and iii) the distribution of any written material. Any violation or attempted violation of this policy by a non-employee should be reported immediately to the on-site supervisor. Employees Employees are prohibited from solicitation, for any purpose, during the working time of any employee involved in making or receiving the solicitation. Employees are prohibited from distribution of written material in any work area at all times. Employees are also prohibited from distributing written material anywhere during the working time of any employee actively engaged in the distribution. This policy does not prohibit an employee from performing solicitation or distribution in a non-work area on behalf of a third party that is not engaged in commercial, for-profit, or political activity, provided the employee has received the advance approval of the on-site supervisor to engage in such solicitation or distribution. 100 14 January 2020 Related Policies • Utilities Bulletin Boards. The Utilities in its discretion may permit employees to distribute written material by posting on Utilities bulletin boards in accordance with this policy, provided that any material for such posting must be reviewed and approved in advance by a Utilities manager or Director, who may consult with the Human Resources Representative before making a decision whether or not to allow the posting. • Solicitation and Distribution on Utilities Computer and E-Mail Systems. Employees and non-employees are prohibited from using Utilities computer systems and other property and resources, including the Utilities e-mail system, for solicitation or distribution, except in connection with a Utilities-sponsored activity or, with advance approval of the on-site supervisor, on behalf of a third party that is not engaged in commercial, for-profit, or political activity. Violation of This Policy By an Employee Any employee in violation of this policy will be subject to disciplinary action up to and including discharge. 16. ELECTRONIC COMMUNICATIONS: INTERNET, E-MAIL, AND SOCIAL MEDIA This policy covers all types of electronic communications. All Utilities computers, software, servers, computer systems, cell phones and telephone systems and other electronic services arranged for by the Utilities (“Electronic Communications Systems” or “ECS”) are the property of the Utilities and are intended and expected to be used for Utilities business. While occasional use of these systems for personal, non-business use is acceptable, employees must demonstrate a sense of responsibility and may not abuse such privileges. Communications of any kind by a Utilities employee over the Utilities’ ECS, whether work-related or personal, is subject to monitoring and review by the Utilities at any time, with or without notice or permission. Employees should have no expectation of privacy in the use of these systems. The use of passwords on these systems does not mean that messages stored on them are private or confidential, either from the Utilities or others. This policy covers all usage and communications by employees in, on or over the Utilities’ Electronic Communications Systems, including e-mail, voice-mail, Internet and social media, whether such usage or communications are from the Utilities’ offices or from a remote location. This policy also covers electronic communications not done in, on, or over the Utilities’ ECS but in which the employee identifies himself or herself as a Utilities employee. Violations of this policy may result in discipline, up to and including termination. 101 15 January 2020 All communications sent by employees over the Utilities’ ECS must be respectful in tone and professional. Communications over the Utilities’ ECS may not be used for transmitting, retrieving or storing any communications of a discriminatory or harassing nature, derogatory to an individual or group, obscene, or which are of a defamatory or threatening nature. Such communications should not be used for “chain letters” or for any purpose which is illegal or against Utilities policy. Employees must respect other people’s electronic communications. Employees may not obtain unauthorized access to another’s e-mail or voice-mail messages, except pursuant to direction from a Utilities manager or Director for the purposes specified above. Employees may not use the e-mail or voice-mail systems in a way that causes congestion on the systems or that significantly interferes with another employee’s ability to use the systems. GENERAL GUIDELINES APPLICABLE TO ELECTRONIC COMMUNICATIONS, INCLUDING COMMUNICATIONS OVER SOCIAL MEDIA • In general, the Utilities encourages the use of e-mail and other available electronic communications with residents, consultants, and others as a means of providing services more effectively and efficiently. Internet e-mail is provided and is intended for the Utilities’ business use. • Tact counts. • Humor might not work. Attempts at humor in electronic communications are especially difficult to carry off successfully, so be careful and “when in doubt, leave it out.” Take extra steps to make your intent clear in written communications. • Never gossip, don’t provide confidential personal information about yourself or someone else, and refrain from emotional responses. • Do not communicate with residents, consultants or others using e-mail without first obtaining their consent to email communication. Employees at all times must use discretion in communicating sensitive information and should select communications methods that will protect the confidential and/or sensitive nature of such information. • Communications over the Utilities’ ECS may be identifiable and attributable to the Utilities. Do not send electronic communications that you would not send, or would not be authorized to send, over Utilities letterhead. • The Utilities’ ECS may not be used to participate in social media or other electronic forums except for approved Utilities business, professional development, or business development purposes. 102 16 January 2020 • The Utilities’ ECS may not be used to access pornographic or obscene material or other offensive or inappropriate content. • Internet access is provided primarily for you to retrieve information. Do not use the ECS to post information, comments or statements, except for prior-approved Utilities business, professional development or Utilities business development purposes. • An Internet site may request information about you in order to build a user profile or mailing list. Refuse any such requests when using the Utilities’ ECS. Respond “no” to any suggested download, upgrade, or enhancement of software. Do not make any purchases or access a web site that charges a fee, except for approved Utilities business purposes. • Employees may not send electronic communications over the ECS that attempt to hide the identity of the sender or that represent the sender as someone else or someone from a different Utilities or a company. • Employees must respect all copyrights and intellectual property rights of others’ materials, and may not copy, retrieve, modify or forward copyrighted, patented or trademarked materials except as permitted by the owner or as a single copy for reference use only. • Internet and other ECS usage is not confidential. The Utilities receives detailed monthly reports on Internet usage by individual employees and the Utilities’ software tracks each Internet site you visit. Bandwidth Conservation The Utilities uses the Internet for a number of key Utilities functions. To ensure sufficient bandwidth to perform these functions, the Utilities has implemented a variety of bandwidth conservation measures. These measures include blocking websites that have no instructional or administrative value. Employees may not use Internet radio stations for casual listening and/or background music. Employees may not download music or video files from the Internet. Employees who violate any of the guidelines may be subject to disciplinary action including, but not limited to, written warnings, revocation of access privileges and termination of employment. 17. SUPPLEMENTAL EMPLOYMENT The Utilities does not restrict employees from engaging in outside employment. However, the Utilities expects regular full-time employees to consider Utilities work their primary employment. No Utilities employee may engage in outside employment that interferes 103 17 January 2020 with the performance of his/her duties with the Utilities, that represents a conflict of interest, or that may influence or bias an employee’s job related decision making ability. The Utilities will not change an employee’s work hours to facilitate the scheduling of any outside employment. If a supervisor believes an employee’s outside employment is detrimental to the Utilities and his/her position, the employee may be asked to discontinue the outside employment. If an employee is asked to discontinue outside employment and fails to do so, he/she may be subject to discipline up to and including termination. Fire Department Participation Employees are allowed to participate as a part-time paid firefighter in a Fire Department. A non-exempt employee will be allowed to respond to fire calls as approved and determined by his/her department supervisor, based on the work assignments and responsibilities of the employee and department. Non-exempt employees responding to fire calls during scheduled work hours will need to use vacation time for time away from work, and exempt employees need to use vacation time or make-up time for the same scenario. An employee may not respond to fire calls while on-call for the Utilities. 18. REPORT OF PERSONNEL CHANGES The Utilities attempts to maintain complete and accurate personnel information on its employees. It is the responsibility of each employee to notify the office of the Utilities when changes occur, including: • Name (through marriage or otherwise); • Address; • Beneficiaries for life insurance and retirement; • Telephone number; • Person to contact in case of emergency; or • Other changes which may affect benefits coverage. 19. ATTENDANCE Regular attendance is an essential function of every job with the Utilities. Every Utilities employee has an important role to play in maintaining a productive workplace. Therefore, it is essential that all employees report to work as scheduled every day. Unsatisfactory attendance, including reporting late to work and leaving work early may result in disciplinary action up to and including discharge. If an employee must be absent from work for any reason, other than approved time off, the employee must notify his/her immediate supervisor at least thirty (30) minutes prior to the start of his/her normal working hours. If an emergency prevents the employee from notifying his/her supervisor at such time, the employee must call his/her immediate supervisor as soon as possible during the workday. 104 18 January 2020 20. DISCIPLINE, DISMISSAL & LAY OFF Discipline. The Utilities retains the right to take disciplinary and other action as it believes appropriate to manage employee performance and workplace conduct. The type and level of discipline imposed will be at the Utilities’ discretion based upon the nature and severity of the issue and the circumstances as a whole. Examples of discipline and other action that may be taken to manage performance and workplace conduct include, but are not limited to: • Documented Coaching and Counseling • Oral reprimand • Written reprimand • Performance Improvement Plan • Suspension • Demotion • Termination. Discipline and other action may be used in any order or combination in the discretion of the Utilities. In some cases, one or more disciplinary actions will be taken before termination; in other cases, termination will be immediate. While the Utilities strives for consistency, the level of discipline taken in any given case does not establish a controlling precedent for future circumstances. Probation and Dismissal. All new employees shall be on probation for a period of one hundred eighty (180) days. Continued employment during this period shall rest solely with the discretion of the Utilities Commission. After that period, the employee shall attain regular status subject to the following: Employees on regular status may be dismissed only for cause, which may include, but is not limited to, the following: Conduct in violation of or inconsistent with Utilities policy, including but not limited to any and all policies set forth in this Handbook; conduct or language that is improper or inappropriate in the discretion of the Utilities; insubordination; failure to do the work assigned in a manner satisfactory to the Utilities; dishonesty or stealing; and the sale, transfer of, or possession, or being under the influence, of intoxicating beverages or controlled or mood altering substances while on the job. Layoff/Reduction in Force. The Utilities reserves the right and sole discretion to eliminate positions and/or reduce the hours associated with a position for any legitimate business reason, with or without cause. 105 19 January 2020 21. JOB POSTING As position vacancies occur at the Utilities, the position’s job description will be posted in a prominent location to inform employees of the vacancy. Employees in good standing that wish to be considered for the position are encouraged to contact the appropriate decision-maker(s) indicated on the posting. The Utilities may also advertise the vacancy to attract external candidates. The Utilities retains all its managerial rights and has the sole discretion to decide which candidate is best qualified to fill a vacant position, whether or not the candidate is a current Utilities employee. 22. PERFORMANCE REVIEWS An employee’s immediate supervisor or department head normally will conduct a performance review on an annual basis. Employee performance, however, may be coached or reviewed formally or informally at any time. Performance reviews are an opportunity for employees, management, and the Utilities to assess an individual’s job performance and to assure the continuing improvement of every employee’s performance. The performance review system is designed to: • Ensure that quality services are provided to the public at the least possible cost; • Motivate and develop employees to their fullest potential; • Clarify roles and mutual expectations of supervisors and employees; • Promote open and ongoing communication between employees at all levels, including feedback from subordinates to supervisors; and • Assist in determination of whether employees are meeting the performance standards for their position. The performance review will usually be documented in writing as well as delivered orally to the employee in person. Completed performance review forms should be signed by the employee and the supervisor or other Utilities manager, Director or other representative delivering the review to the employee. These completed forms are generally maintained in the employee’s personnel file. Performance Metrics Incentives The Utilities uses a Performance Metrics Incentive system to annually award performance- based compensation to eligible employees (those currently employed who are in good 106 20 January 2020 standing). An employee must remain employed by the Utilities at the time such award is to be made in order to receive the incentive. WAGES AND HOURS 23. WORK HOURS AND OVERTIME For purposes of timekeeping and overtime calculations, the regular workweek at the Utilities runs from Tuesday through Monday. Non-exempt employees are paid on the basis of hours worked. Exempt employees are paid on a salary basis; their compensation is not based on the number of hours they work. All non-exempt employees will be paid for their time worked in excess of forty (40) hours during the workweek (Tuesday – Monday) at a rate of one and one-half times the employee’s regular rate of pay. In addition, regular field workers will be paid for regular work performed in excess of eight (8) hours in a day at a rate of one and one-half times the employee’s regular rate of pay. Further, if a field worker uses sick or vacation time during the regular eight hour day, this will not affect the application of overtime rate for those hours worked in excess of the regular work day. Also, when a field worker is mandated to start work prior to the normal scheduled work day, the hours worked outside of the regular scheduled workday will be paid at a rate of one and one-half time the employee’s regular rate of pay. Two times a non-exempt employee’s regular rate will be paid for time worked on Sundays and designated Holidays. The eight hour and double time provisions above do not apply to travel and training time spent away from the regular workplace, but the forty hour overtime pay provision does apply in all cases where an employee is engaged in activity related to and/or required in connection with his or her Utilities employment. Exempt employees are salaried and do not receive overtime. 24. EMPLOYEE CLASSIFICATIONS The following definitions are provided to assist employees in understanding their employment classification and benefits eligibility. Although employees generally will be classified as one of the following, they should be aware that their classification may change at any time as the Utilities considers appropriate. All employees are designated as either non-exempt or exempt from federal and state wage and hour laws. Non-exempt employees are covered by specific provisions of the wage and hour laws, including overtime pay. Exempt employees are excluded from specific provisions of the wage and hour laws, including the overtime provisions. Generally, 107 21 January 2020 exempt employees are engaged in managerial, professional, administrative, or executive positions and are paid on a salaried basis. It is our policy to fully comply with federal and state wage and hour laws. In keeping with this commitment, we will pay exempt employees their full salary (or salary plus vacation to equal the amount of the full salary) for any workweek in which they perform work, regardless of the number of days or hours worked, subject only to deductions that are permitted by law. Full day deductions from pay that are permitted by law include, for example, deductions for personal time off, sick days before or after eligibility for paid sick leave, or for infractions of written workplace conduct rules including but not limited to any rule or policy set forth in this Handbook. Full or partial day deductions may be made from the salaries of exempt employees for infractions of safety rules of major significance and in certain other limited circumstances. Employees are classified according to the following definitions: Regular Full-Time Employee. A regular full-time employee typically works 40 or more hours per week, and is not classified as a temporary worker. Regular Part-Time Employee. A regular part-time employee typically works fewer than 40 hours per week, and is not classified as a temporary worker. Regular Field Worker. An employee whose regular assigned position involves performing a significant portion of his or her work outside of the Utilities’ physical facilities. Exempt Employee. An employee whose duties result in exclusion of the employee’s work from coverage under the minimum wage and/or overtime provisions of the wage and hour laws. Non-Exempt Employee. An employee whose duties result in coverage of the employee’s work under the minimum wage and/or overtime provisions of the wage and hour laws. Utilities Manager. Any employee of the Utilities, or other individual identified by the Commission, who is a Utilities supervisor, superintendent, manager, director, representative or other individual who is generally identified to employees by Utilities policy, practice or communication as having managerial, supervisory, or administrative authority to act on behalf of the Utilities, regardless of whether such authority is limited or subject to the authority of others in the Utilities’ organizational structure. Temporary Worker. A temporary worker typically is hired for a specific period of time. Generally, temporary workers are hired as interim replacements, to supplement the work force, and/or to assist with specific projects. Temporary workers often will be informed of an estimated duration of their assignment, 108 22 January 2020 although either the worker or the Utilities may end the work relationship at any time. Temporary work that continues beyond an estimated duration in no way implies a change in the worker’s status. Temporary workers retain their temporary status unless and until they are specifically notified by the Utilities of a change. 25. TIME REPORTING POLICY General Policy The goal of the time reporting system is the accurate and timely reporting of time worked (by job or account) and time off (by category). This is essential for (1) guaranteeing that employees are paid correctly and that their leave accumulations are accurate, (2) monitoring actual performance against budgetary goals, and (3) ensuring labor costs are properly reported. Each employee is responsible for the accurate submission of his or her own personal time reporting, and each supervisor is responsible for reviewing the employee’s compliance with this time reporting policy. Recording Time Non-exempt employees are required to record and submit the following on their timecard: • Amount of Time Worked in increments of the nearest one-quarter hour; • Description of the activities performed during the time worked; • Identification of the account to be charged (accounting system designation); and • The work order(s) to which the time applies (as appropriate). The purpose of the description of activities during the time worked is to document for employee performance and client accountability purposes how an employee’s work time was spent. Work orders are utilized for specific projects to track time and labor for billing purposes, or capitalization projects. Frequency Non-exempt employees are required to fill out their timecards daily. It is preferred that employees fill out their timecards at the end of each completed work day, but timecards may be completed within the first hour of arriving at work on the subsequent work day. This is not intended to conflict with payroll deadlines for paperwork. Timecards may be checked periodically throughout the pay period for completeness and accuracy. It is understood that timecards must be available for, and are subject to review/audit by, the employee’s supervisor at any time. 109 23 January 2020 Time Deductions for Breaks Field workers generally will receive one fifteen minute paid break in the morning and one in the afternoon; and will receive a 30 minute unpaid lunch break during each shift. Office employees receive a 60 minute break for lunch, 30 minutes of which is paid in lieu of having two fifteen minute breaks, morning and afternoon. The other 30 minutes of the office employees’ 60 minute lunch break is unpaid. Please see below under “Ensuring Accuracy of Timekeeping Reports” for important information about pay practices affecting unpaid lunch breaks. Ensuring Accuracy of Timekeeping Reports Non-exempt employees are responsible for, and must take steps to ensure, the accuracy and completeness of time reporting data collected. This is critically important because the Utilities relies on such submissions in carrying out its duty to properly pay wages and other forms of compensation. Furthermore, knowingly submitting or approving inaccurate time reporting data is a violation of policy and may subject the person to disciplinary action. PLEASE NOTE: By submitting time reporting data a non-exempt employee is attesting to the accuracy of the time data reflected on the timecard and/or in the report. PLEASE NOTE FURTHER: Because of the regularity of our break and work schedules, the Utilities automatically deducts scheduled unpaid lunch breaks. If an employee does not receive the 30 minute unpaid lunch break on any given shift, the Utilities will pay you for that 30 minutes. We can do so, however, only if you notify us that you did not get your break. It is your responsibility to provide this notice to your supervisor. A pattern of not taking unpaid lunch breaks may subject an employee to discipline; but it will never result in the Utilities failing or refusing to pay for such time. Special Note About Work Performed Outside of Scheduled Times and Places Each non-exempt employee must accurately record and properly report all time spent performing work for the Utilities, regardless of the location where such work is performed. Employees generally should not perform work at times or places outside of the times and places they are scheduled to work by the Utilities. If a need for work outside of scheduled times or places is, or should be, anticipated, the employee should seek permission to perform such work from Utilities management in advance, and if permission is not secured in advance such work should generally not be performed. Performing work outside of scheduled and approved times and places may result in discipline; it shall not under any circumstances, however, result in an employee not being paid for time spent performing Utilities work. In the case of a non-exempt employee who is on call, the on call stipend paid to the employee covers all compensation due for calls taken as to which there is no call out. 110 24 January 2020 If unanticipated, time-sensitive, or urgent work needs to be performed at times and/or places outside of those scheduled by the Utilities, the non-exempt employee should perform only so much of the work as is necessary to address the immediate need. Regardless of whether work is anticipated or of an urgent nature, and regardless of whether advance permission has been received to do such work or not, all time spent by a non- exempt employee actually performing Utilities work must be accurately recorded and properly reported to Utilities management. Further to the Special Note above: Working Remotely Non-exempt employees who wish to work remotely (other than field employees whose normal duties entail working away from the Utilities’ offices) must first obtain written permission from management to do so. Employees may not access Utilities’ systems or data without first obtaining such permission. Any and all time worked remotely, including time spent accessing Utilities systems or data for the benefit of the employer, must be recorded and reported to the Utilities in order to assure proper compensation, in accordance with this Time Reporting Policy and the Fair Pay Policy below in Section 26. 26. FAIR PAY POLICY Elk River Municipal Utilities (referred to in this Fair Pay Policy as the “Employer” or the “Utilities”) is committed to fair compensation for its employees as explained in this Fair Pay Policy. Specifically, it is the policy and practice of the Employer to accurately compensate employees and to do so in compliance with all applicable state and federal laws. The Utilities will never knowingly fail or refuse to pay an employee the full amount of compensation to which he or she is entitled by law for work performed on behalf of the Utilities. ALL EMPLOYEES Protection of Employee Rights The Employer will protect the right of each employee to receive compensation according to the law. Violations of this Fair Pay Policy, whether by a managerial or non-managerial employee, may result in disciplinary action, if appropriate under the circumstances, up to and including termination of employment. The Employer will not tolerate or allow any form of retaliation against individuals who report alleged or suspected violations of this policy or who cooperate in the Employer’s investigation of such reports. Retaliation is unacceptable, and any form of retaliation in violation of this policy will result in disciplinary action, up to and including termination. 111 25 January 2020 Record Your Time And Review Your Pay Stub To ensure that you are paid properly for all time worked and that no improper deductions are made, you must record correctly all work time and review your paychecks promptly to identify and to report all errors. The Employer makes every effort to ensure that its employees are paid correctly. Occasionally, however, inadvertent mistakes can happen. When mistakes happen, the Employer will promptly make any corrections necessary to provide you with the pay to which you were entitled and as otherwise required by law. To assist the Employer in its efforts, please review your pay stub when you receive it to make sure it is correct. If you believe a mistake has occurred or if you have any questions, please use the following procedure. How to Raise a Question or Concern about your Pay or a Payroll Deduction If you have questions about your pay or any deduction from your pay, please immediately contact your supervisor/manager. If you believe your paycheck has been subjected to an improper deduction or that the pay you have received does not accurately reflect the compensation you are entitled to for your work, you should immediately report the matter to your supervisor/manager, the Finance Manager, or the Payroll Specialist. The Employer will fully investigate every such report, including by reviewing appropriate time and payroll records and interviewing persons responsible for payroll and/or payroll deductions. If you have been paid incorrectly or if the Employer determines that a deduction was improperly made, the Employer will reimburse you as promptly as possible, which will be no later than two pay periods from the time you report the suspected problem. The individual(s) responsible for the error will be investigated further to determine if the error was an isolated incident or whether instead it may be part of a pattern of conduct that requires further action on the part of the Employer. Regular Attendance is an Essential Job Function and Your Attendance Record is a Performance Issue Regular attendance is an essential function of jobs with the Employer. The failure of any employee, whether exempt or non-exempt, to perform according to the Employer’s expectations, including any failure by an employee to meet the Employer’s attendance standards, may result in disciplinary action up to and including termination of employment. For these and other reasons, it is important for employees to accurately record the time they work for the Employer. NON-EXEMPT EMPLOYEES If you are classified as a non-exempt employee, the Employer relies on your use of the timekeeping software to maintain an accurate record of the total hours you work each day. The timekeeping software is designed to reflect all regular and overtime hours worked, any 112 26 January 2020 absences, late arrivals, early departures and meal breaks. If any error or inaccuracy occurs in connection with your use of the timekeeping software it is your responsibility to notify your supervisor/manager to correct the error or inaccuracy. When you receive each pay check, please verify immediately that you were paid correctly for all regular and overtime hours worked during each work week. You should not work any hours that are not scheduled or requested of you by the Employer unless you are authorized to do so by your supervisor. Do not start work early, finish work late, work during a meal break or perform any other extra or overtime work unless you are authorized to do so and you record such time on your time card. Non-exempt employees are strictly prohibited from performing any “off-the-clock” work. “Off-the-clock” work means work you perform but fail to report on your time card. Any employee who fails to report or inaccurately reports hours worked will be subject to disciplinary action, up to and including termination. It is a violation of the Employer’s policy for any employee to falsify a time card, or to alter another employee’s time card. It is also a serious violation of Employer policy for any employee or manager to instruct another employee to incorrectly or falsely report hours worked or alter another employee’s time card to under-report or over-report hours worked. If any manager or employee instructs you to either (1) incorrectly or falsely under-report or over-report your hours worked, or (2) alter another employee’s time records to inaccurately or falsely report that employee’s hours worked, you should report the situation immediately to the Payroll Specialist, the Finance Manager, or your supervisor/manager. On Call Time For Non-Exempt Employees Non-exempt employees in certain positions may be scheduled to be on call for duty of various kinds. Compensation for time spent on call by non-exempt employees is generally subject to applicable state and federal law and to the terms of any governing union contract. Similarly, compensation for time spent actually working is paid according to applicable state and federal law and to the terms of any governing union contract. EXEMPT EMPLOYEES Salary Basis of Compensation If you are classified as an exempt employee, you will receive a salary that is intended to compensate you for all hours worked for the Employer. This salary will be established at the time of hire or when you become classified as an exempt employee. While your salary may be subject to review and modification from time to time, such as during salary review times, the salary will be a predetermined amount that will not be subject to deductions for variations in the quantity or quality of the work you perform. Attendance and Recording Time for Exempt Employees Although exempt employees are paid on a salary basis and not by the hour, all exempt employees are nevertheless required to record all time spent working for the Employer. 113 27 January 2020 This is important for a variety of reasons, but it is not for the purpose of paying an exempt employee other than on a salary basis. For payroll purposes, the regular workweek for exempt employees of the Employer is defined as the week running from Tuesday morning at 12:00 a.m. to the following Monday evening at 11:59 p.m. The regular business workday for exempt employees is generally from 7:00 a.m. to 3:30 p.m. or 8:00 a.m. to 4:30 p.m., unless a manager, Director, or supervisor has specified other expectations or arrangements. The Employer generally expects that an exempt employee will work forty or more hours in each workweek. Exempt employees are required to meet the Employer’s attendance standards, which the Employer sets in its discretion. On Call Time For Exempt Employees Exempt employees who are assigned on-call duty or pager duty do not receive additional pay for that duty. The Employer may, from time to time in its discretion, choose to assign certain credit or rewards to exempt employees for performing such duty. Deductions from an Exempt Employee’s Salary The Employer does not permit any payroll deduction unless it is approved by the Finance Manager. Deductions from an exempt employee’s salary will only be made in good faith and in compliance with applicable law. No manager or other employee of the Employer has the authority to order any deductions from an exempt employee’s salary without the approval of the General Manager. Federal and state law limit the deductions that may be made from the salary of an exempt employee. The Employer intends to fully and strictly comply with these limitations. Please note that these limitations concern the amount of gross salary received on the paycheck; but these are different from any limitation on deductions from an employee’s leave bank. Further explanation of how this works follows below. Important Definitions. A deduction from salary is a deduction that results in a lower gross pay amount on an employee’s paycheck. A deduction from a leave bank does not result in a lower gross pay amount on an employee’s paycheck, but, rather, reduces the balance in the employee’s leave account; or, in other words, reduces the amount of an employee’s accrued and unused vacation or sick leave. Permissible Deductions from Salary. 114 28 January 2020 Absent contrary state law requirements or a specific employment contract executed by a duly authorized representative of the Employer, the salary of an exempt employee may be reduced for any of the following reasons: • Full day absences for personal reasons. • Full day absences for sickness or disability (which absence may otherwise be paid through any sick time benefits available to the salaried employee, if any). • Full day disciplinary suspensions for infractions of the Employer’s written policies and procedures. • Full day disciplinary suspensions for violations of workplace safety rules of major significance. • To offset amounts received as payment for jury and witness fees or military pay. • The first or last week of employment in the event the employee works less than a full week. The salary of an exempt employee may also be reduced for certain types of deductions such as the employee’s portion of health, dental or life insurance premiums; state, federal or local taxes, social security; or, voluntary contribut ions to a Section 457 retirement plan. Impermissible Deductions from Salary. In any work week in which an exempt employee performs any work, the exempt employee’s salary amount will not be reduced for any of the following reasons, although, as explained further in more detail below, the employee’s leave bank may be reduced for these reasons, in some circumstances: • Partial day absences for personal reasons, sickness or disability. • Absence because the facility is closed on a scheduled work day. • Absences for jury duty, attendance as a witness, or military leave in any week in which you have performed any work. • Any other deductions prohibited by state or federal law. Permissible Deductions from An Exempt Employee’s Leave Bank. Federal and state law permit the Employer to reduce an exempt employee’s accrued vacation or sick balance for full or partial day absences for personal reasons, 115 29 January 2020 sickness or disability. Deduction for the use of such leave time will not be made from the exempt employee’s salary, but from the exempt employee’s leave bank. Questions or Concerns about This Fair Pay Policy If you have questions or concerns about this Fair Pay Policy, please contact your supervisor/manager, any Director, or Human Resources. 27. CALL OUT TIME: REGULAR FIELD WORKERS Regular field workers who are asked to report for work outside their regular working hours shall be paid a minimum of two (2) hours each time they report for work. Scheduled work contiguous to normal working hours shall not be subject to this two (2) hour minimum reporting pay obligation. However, if a regular field worker reports for work before or remains after the regular eight (8) hour work day, or works on a Saturday, Sunday or Holiday, he/she will be paid at the applicable overtime rate for each hour worked over eight in a day, or on a Sunday or Holiday, as applicable. Such reporting and overtime pay is not applicable to situations involving travel or training time away from the regular workplace except where the employee’s total working time for the workweek exceeds 40 hours, in which case the 40 hour overtime provision will apply. Work performed for which an employee does not report to a particular work site, such as work that can be performed on a laptop computer from a non-work site, shall not be subject to this two hour minimum reporting pay obligation. This policy does not apply to employees other than regular field workers. 28. ON-CALL Regular Field Workers. Required On-Call Rotation for Regular Field Workers. Regular field workers (including linepersons, water operators, and other specifically trained field workers) are subject to a residency rule. These same workers are also subject to required participation in a scheduled on-call rotation. Apprentices may be excluded from the on-call rotation for up to one year from their date of hire, per management discretion. The on-call rotation is scheduled in one (1) week blocks. Residency Rule. The residency rule applies to the regular field workers who may be required to serve on-call. The residency rule is that these employees must live within a twenty (20) mile radius of the power plant. 116 30 January 2020 Response Time. The following guidelines on response time apply to regular field workers in the on-call rotation schedule on a 24-hours-a-day, seven-days-a-week basis during the workers’ scheduled on-call weeks. • While on-call, workers must remain within the 20 mile residency radius. • While on-call, workers are expected to make immediate telephone contact in response to a call. • While on-call, workers are expected to urgently report to a site of need within a reasonable time, which will vary depending on the identified reason for the call. Depending on the need an on-call worker may find it necessary to call in a field partner to assist in providing appropriate and timely call response. Take Home Vehicles. Regular field workers who are part of the scheduled on-call rotation will be provided a company vehicle to take home for the exclusive purpose of responding to calls about Utilities business during the on-call block. Compensation for On-Call Time. Time spent on-call by regular field workers is not working time. In recognition of this on-call service, however, nominal compensation is paid. Weekly Compensation for Workers in an On-Call Rotation. For workers in a regular on-call rotation, compensation of twelve (12) hours at the worker’s base rate of pay is paid, which covers an entire one (1) week block of on-call service. This compensation covers all time spent on call during the on call week, including phone or other remote triage work as to which there is no call out. Pro Rata Compensation for Workers Performing Back-Up On-Call Service. Workers not in a regular on-call rotation may be designated and required to serve on-call on a back- up basis. Such workers who serve on-call for less than a full week at a time will be compensated for their on-call service on a pro rata basis for each day of on-call service, at the daily rate of 1/7 of 12 hours times the worker’s base rate of pay. Workers not in a regular on-call rotation who serve on call, upon designation, for a full week will receive compensation on the same basis as do workers who are in an on-call rotation. 117 31 January 2020 When a recognized paid holiday falls within the on-call block covered by the worker (whether a week or portion thereof), eight (8) comp time hours will be awarded as additional on-call compensation. Compensation for Actual Response Time. Time spent actually responding to a call that is received while a worker is serving on-call, however, is working time, and is therefore paid based on an employee’s regular rate of pay. Call out time. When an employee is on-call, the Utilities’ policy on call out time pay still applies, in accordance with the terms of that policy. Other On-Call Arrangements. Certain employees other than regular field workers, namely, the Operations Director, Electric Superintendent and the Water Superintendent, are subject to call response requirements for emergency preparedness and/or customer service purposes. The Operations Director, Electric Superintendent and the Water Superintendent are not subject to the residency rule that applies to regular field service workers. Superintendents. Electric Superintendent. The Electric Superintendent is required to be available to triage or respond on an as-needed basis to emergency calls 24 hours a day, seven days a week without rotation. Such on-call time and availability is not working time. The Electric Superintendent is not required to remain within the residency radius and does not receive additional compensation for on-call time or for actual response time. The call out time policy does not apply to the Electric Superintendent. The Electric Superintendent shall arrange for another qualified Utilities employee to be on call: 1) during his or her scheduled vacation periods; 2) when it is necessary for the Electric Superintendent to use accrued sick leave. Water Superintendent. The Water Superintendent is required to be available to triage or respond on an as-needed basis to emergency calls 24 hours a day, seven days a week without rotation. Such on-call time and availability is not working time. The Water Superintendent is not required to remain within the residency radius and does not receive additional compensation for on-call time or for actual response time. The call out time policy does not apply to the Water Superintendent. The Water Superintendent shall 118 32 January 2020 arrange for another qualified Utilities employee to be on call: 1) during his or her scheduled vacation periods; 2) when it is necessary for the Water Superintendent to use accrued sick leave. Operations Director. The Operations Director is required to be available to triage or respond on an as-needed basis to emergency calls 24 hours a day, seven days a week without rotation. Such on-call time and availability is not working time. The Operations Director is not required to remain within the residency radius and does not receive additional compensation for on-call time or for actual response time. The call out time policy does not apply to the Operations Director. The Operations Director shall arrange for another qualified Utilities employee to be on call: 1) during his or her scheduled vacation periods; 2) when it is necessary for the Operations Director to use accrued sick leave. Take Home Vehicles. Based on the expectation that they will regularly be available to respond in a timely and appropriate manner to calls about Utilities business outside of regular business hours, the Operations Director, the Electric Superintendent and the Water Superintendent, are provided Utilities vehicles to take home. These vehicles are subject to the Utilities’ Use and Disposal of Utility Property policy and may only be used for the exclusive purpose of responding to calls about Utilities business. 29. ELECTRIC RE-CONNECT TIME Regular field workers performing electric re-connects at times other than during their scheduled work hours will be paid in accordance with the general policy on Call Out Time for Regular Field Workers. 30. STORM PAY Employees assigned to work at another utilities distribution system to assist with restoration following a storm, will receive time and one-half (1.5) times their regular rate of pay for all such hours worked, except hours worked on Sunday or an Elk River Municipal Utilities recognized Holiday, which shall be paid at two (2.0) times the employee’s regular rate of pay. The Utilities will use its best efforts to rotate and distribute these assignments equally with priority on maintaining proper staffing levels at Elk River Municipal Utilities. 119 33 January 2020 31. LEAD PAY DIFFERENTIAL An employee who is currently a lineman shall assume the duties of a lead lineman when the lead lineman is absent from a crew, provided that only the most senior lineman on a crew shall assume the lead lineman’s duties. The lineman assuming such duties shall receive a rate differential equal to 3% of the applicable rate of pay times the number of hours worked during which the lineman assumed such lead duties. The rate differential provided in this policy applies during both regular scheduled work hours and after hours. During after-hours call out, as well as at any other time, this rate differential will be paid only when the crew is full and the lead lineman is absent. 32. PAYCHECK DEDUCTIONS By law, the Utilities is required to withhold federal and state taxes, FICA and PERA from an employee’s pay. The Utilities also has a Health Care Savings Plan with mandatory participation and will withhold applicable amounts from an employee’s pay. In addition, other deductions may be made upon authorization of a participating employee including the following: a. Employee share of health insurance g. World Vision b. Credit Union h. United Way c. PERA life insurance d. 457 contributions e. Flexible benefits f. Computer Loans up to $1,200.00 (12 month term) 33. PAYCHECKS Employees are paid every two weeks. The pay period begins every other Tuesday at 12:00 a.m. and ends every other following Monday at 11:59 p.m. Payday is the Friday immediately following the end of the pay period. Employees are responsible for their paychecks upon receipt. Direct deposit is preferred but a check is available to employees upon request. 34. NIGHTWORK REST TIME The Utilities will provide a regular field worker with one hour paid rest time for each hour worked between 10:00 p.m. and 6:00 a.m., excluding work performed during such window on Saturday or Sunday. The worker must make arrangements with his or her supervisor before taking such rest time. This nightwork rest time shall be taken during the next scheduled work shift. If the supervisor does not release the worker to take this nightwork 120 34 January 2020 rest time, all hours worked by the worker on the next scheduled shift shall be paid at one and one half times the worker’s base rate of pay. It is the employee’s responsibility to notify the supervisor and obtain approval prior to taking the rest time. It is also the employee’s responsibility to take the nightwork rest time if it is approved by the supervisor. The employee’s failure to take approved nightwork rest time shall result in forfeit ure of such rest time. Nightwork rest time does not apply and is not paid in connection with travel or training time away from the regular workplace. 35. TRAVEL AND TRAINING TIME Employees are paid for time spent in training related to their position with the Utilities, which must be approved in advance by the supervisor. Employees will be paid for their time spent traveling in the following circumstances. 1. When a non-exempt employee is engaged in travel which keeps the employee away from home overnight and which cuts across a regular workday; 2. When a non-exempt employee travels to a special one-day work assignment in another city that does not require an overnight stay; 3. When a non-exempt employee spends time traveling as part of the employer’s principal activity; 4. When a non-exempt employee spends time traveling between home and work in “call back” or “emergency” situations; and 5. When a non-exempt employee performs work during travel. Overtime (at one and a half times the regular rate of pay) will be paid in connection with training or travel time only when, and to the extent, that an employee’s total compensated hours in a workweek exceed 40. The eight hour and double time provisions of the Utilities’ wage and hour policy do not apply to days involving work-related travel or training. 121 35 January 2020 BENEFITS 36. GENERAL BENEFITS This handbook provides a brief description of benefits available to eligible employees. The descriptions provided here are not intended to be comprehensive and all questions regarding eligibility and benefit levels should be directed to your supervisor so the specific plan documents can be reviewed for an answer. The plan documents govern any inconsistencies between these documents and the information provided here. Benefits and eligibility requirements are subject to change, and such changes may not be reflected in this description. The Utilities expects to offer its benefit plans for the foreseeable future, but it reserves the right, in its sole discretion, to change, modify or eliminate them at any time, except to the extent prohibited by law. 37. VACATION All regular full-time employees shall accrue vacation according to the following schedule: Years of Service to Utilities Since Most Recent Date of Hire Accrual Rate Per Year Accrued Per Pay Period 0 – 3 years 10 days 3.08 hours per pay period 4 years 12 days 3.69 hours per pay period 5 years 13 days 4.0 hours per pay period 6-9 years 15 days 4.62 hours per pay period 10 years 16 days 4.92 hours per pay period 11 years 17 days 5.23 hours per pay period 12 years 18 days 5.54 hours per pay period 122 36 January 2020 13 years 19 days 5.85 hours per pay period 14-18 years 20 days 6.15 hours per pay period 19 + years 25 days 7.69 hours per pay period Vacation days accrue each pay period as shown in the table above. Paid vacation may be taken as soon as it is accrued. Accrual rates change, as applicable, on an employee’s anniversary date. Example: If an employee’s start date was July 1, 2016, the new accrual rate would start July 1, 2019. If an employee is on leave and using vacation on a basis of less than the regular eight hour day, and so not receiving full vacation pay for each day, the accrual is calculated on a pro rata basis. Regular part-time employees accrue paid vacation under this schedule on a pro rata basis. Temporary and seasonal employees are not eligible for paid vacation. Employees must request time off for vacation as far in advance as feasible. When possible, employees will be granted vacation time of their choice. However scheduling of vacation time is subject to the operating needs of the Utilities. Unused vacation days may be carried over from year-to-year, but only to a limited extent, as follows. Unused vacation carryover will be limited to the number of hours accrued during the previous year. Accrued vacation days beyond the carryover limit are lost. For example, if an employee with 2 years of service has accrued but not used 15 vacation days by the end of the pay period containing his or her anniversary date, he or she will only be permitted to carryover 10 days to the next year. Paid vacation may not be used for the purpose of extending an employee’s active employment with the Utilities or for retaining a full-time equivalency percentage that is not based on an employee’s actual planned and scheduled working time. Employees who voluntarily end their employment and who give the Utilities proper (generally at least two-weeks) notice shall be paid out for the amount of earned but unused vacation time in their account as of the date of separation, provided they sign and do not rescind an agreement releasing claims arising out of their employment, in a form prescribed by the Utilities. Employees involuntarily terminated by the Utilities for any reason other than lack of work shall not be paid out any unused vacation time. Employees who retire immediately eligible to claim their pension and who give the Utilities proper notice (generally at least two-weeks) shall have 100% of unused vacation time 123 37 January 2020 converted into cash and deposited into their Post Employment Health Care Savings account, but only on the condition that they sign and do not rescind an agreement releasing claims arising out of their employment, in a form prescribed by the Utilities. The Operations Director, Electric Superintendent and Water Superintendent accrue paid vacation at the rate set forth above and are generally subject to this Vacation policy; but they each shall also receive an additional 40 hours of paid vacation per year, the balance of which will be paid out at their respective then-current base rates of pay if not used by the end of the year. No such balance may be carried over from year to year. 38. PURCHASED VACATION TIME (PVT) Upon starting employment and during each annual open enrollment period, an employee may purchase up to 40 hours of additional paid vacation time. If an employee decides to purchase vacation time, the employee pays for the hours on a pre-tax basis. The cost of the purchased vacation time will be deducted equally from each paycheck over the course of the year and paid out at the rate in effect upon payout. Vacation is purchased in one-hour increments with a minimum purchase of eight hours and a maximum purchase of 40 hours. Per IRS regulations, the purchased vacation time can only be used once the employee’s entire accrued vacation time has been exhausted. Purchased vacation hours must be used in the calendar year in which they are purchased. Any purchased vacation hours that have not been used before the second to last pay period end date of the calendar year will automatically be paid out in the last pay check of the calendar year in which the vacation time was purchased, at the rate in effect at the time of payout and subject to withholding at the supplemental tax rate. Therefore, purchased vacation time will not be available for use in any year after mid-December. Upon separation from employment, if purchased vacation time used exceeds the cost of such purchase that has been deducted up to that time, the employee must pay the difference back to ERMU. However, if the employee has remaining purchased vacation time that has not been used, it will be paid out to the employee upon separation. New employees are allowed to buy purchased vacation time based on their benefit eligibility date, as listed in the chart below. Benefit Eligibility Date Maximum PVT Hours Eligible for Purchase January – March 40 Hours April – May 32 Hours June – July 24 Hours August – September 16 Hours October – November 8 Hours December 0 Hours 124 38 January 2020 39. PAID SICK LEAVE Regular full-time employees accrue sick leave at the rate of 3.69 hours per pay period (approximately 8 hours per month). If an employee is on leave and using sick leave less than the regular 8 hour day, and so not receiving full pay, the accrual is calculated on a pro rata basis. Regular part-time employees accrue sick leave pro rata based on the full-time accrual rate. Temporary and seasonal employees are not eligible for sick leave. Sick leave may be used for illness and for visits to a health care provider (including any visit that would qualify for reimbursement under IRS Flexible Health Care Spending Accounts guidelines, which include, for example, medical doctors, dentists and optometrists). Sick leave may be used to cover illness or visits of the employee or the employee’s child or another “covered relative” as defined below, or for purposes of parenting leave in accordance with Minnesota law. To be a “covered relative” under this policy an individual must have same residence address as the employee and must receive substantially all of his or her financial support from the employee. Sick leave may also be used when an employee’s daycare facility is closed due to sickness. Docu mentation from a health care provider may be requested by the Utilities in its sole discretion. Misuse of paid sick leave may result in disciplinary action. In addition, an employee’s sick time can also be used for a “safety leave” for covered relatives for the purpose of providing or receiving assistance due to sexual assault, domestic abuse or stalking. See also Minnesota Sick Family Member or Safety Leave, Section No. 53, below. Sick leave may not be used for the purpose of extending an employee’s active employment with the Utilities or for retaining a full-time equivalency percentage that is not based on an employee’s actual planned and scheduled working time. Employees are required to notify their immediate supervisor at least thirty (30) minutes prior to the start of their regular working hours if they intend to be absent from work. If an emergency prevents the employee from notifying his/her supervisor at such time, the employee is expected to call as soon as possible during the work day. Employees are also required to keep their supervisors informed of their condition and anticipated return to work. An employee attempting to use sick time for reasons other than those explicitly permitted in this policy will be subject to disciplinary action up to and including termination. A doctor’s certification of the need for sick leave in accordance with this policy shall be required if an employee is absent more than four (4) days or if abuse of sick leave is suspected by the employee’s immediate supervisor, a Utilities manager, Director, or the Human Resources Representative. In some circumstances, an employee may be requested to submit to a medical examination by an appropriate health care provider to confirm whether the employee is fit for duty. In such a circumstance, the Utilities may select the health care provider to conduct the examination. 125 39 January 2020 Unused sick leave will not be paid out in wages upon termination of employment, but in some circumstances is subject to limited conversion under the Health Care Savings Plan policy found elsewhere in this Handbook. 40. PAID HOLIDAYS Regular full-time employees will be paid for eight (8) hours at their base wage rate for each of the following holidays: New Years Day Veterans Day Martin Luther King Day Thanksgiving Day Presidents Day Friday following Thanksgiving Day Memorial Day Christmas Eve Day Independence Day Christmas Day Labor Day Eligible part-time employees will receive paid holidays on the same basis as regular full - time employees, except that holiday pay will be pro-rated according to the number of hours worked. If the holiday falls on a Saturday, the preceding Friday will be observed. If the holiday falls on a Sunday, the following Monday will be observed as a holiday. Employees will not receive holiday pay for any holiday that falls during any leave of absence. 41. EMPLOYEE CLOTHING It is required that employees wear clothing items specified by the Utilities for their position and activity during working time. For regular field workers potentially exposed to electric hazards, the Utilities will provide an initial issue of five fire retardant long sleeved shirts, five fire retardant pants, and five fire retardant tee shirts per outside employee exposed to electric hazards. A second set of five fire retardant long sleeved shirts, five fire retardant pants, and five fire retardant tee shirts will be issued after the probationary period. As an alternative option, one fire retardant hooded fleece may be substituted for two fire retardant long-sleeved shirts and/or one sweatshirt may be substituted for two long-sleeved shirts. Field Supervisors may substitute logoed fire retardant dress shirts for fire retardant uniform shirts. Provided clothing may also include: lineman’s climbing boots, summer work boots, rubber boots, rubber overshoes, insulated winter boots, and coveralls (used for maintenance on trucks). The Utilities will issue a check to the supplier for the covered items. For Commissioners and employees other than regular field workers, the Utilities will provide a $75 annual allowance for Utilities logo clothing. 126 40 January 2020 On an annual basis, the Utilities will replace worn out items that have been provided by the Utilities. Worn out items should be turned in to the Utilities. The Utilities will also provide and replace the following as necessary in the Utilities’ discretion: fire retardant lined and unlined bib overalls, fire retardant lined parka and hood, fire retardant lined bomber jacket, and hats with the appropriate emblems and identification. Upon the end of employment with the Utilities, an employee must return all Utilities - logoed clothing items that were issued to him or her that were paid for by the Utilities.. 42. HEALTH CARE SAVINGS PLAN Utilities’ employees participate in the Minnesota Post Employment Health Care Savings Plan (HCSP) established under Minn. Stat. § 352.98 and as outlined in the Minnesota State Retirement System’s Trust and Plan Documents. All funds collected by the employer on behalf of the employee will be deposited into the employee’s Post Employment Health Care Savings Plan account. General participation rules are outlined below, for a complete guide regarding benefits, use, and eligibility see the plan’s documents. 1. Employees are required to contribute to the Post Employment Health Care Savings Plan. These funds will be deposited after each pay period. The contribution shall be based on the following structure: There will be four groups, concurrent with the pay plan. The four groups are Office, Field Workers, Line Workers, and Management. All groups shall participate in contributions as follows: a. Employees with fewer than 10 years of service are required to contribute 1% of their gross wages. b. Employees with fewer than 20 years of service and at least 10 years of service are required to contribute 2% of their gross wages. c. Employees with at least 20 years of service are required to contribute 3% of their gross wages. 2. Employees who have accrued over 960 hours of sick time will have 50% of those hours converted to cash and deposited in their Post Employment Health Care Savings account. The conversion will take place once a year at the end of December. 3. Employees who voluntarily end their employment and who give the Utilities proper (generally at least two-weeks) notice, and employees whose employment ends involuntarily because of lack of work, will have 50% of unused sick leave, up to a maximum of 120 days, converted into cash and deposited into their Post Employment Health Care Savings account provided they sign and do not rescind an agreement releasing claims arising out of their employment, in a form prescribed by the Utilities. Employees involuntarily 127 41 January 2020 terminated by the Utilities for any reason other than lack of work shall not be eligible to receive such conversion. No contributions will be accepted by the Plan on behalf of an employee after the death of the employee. 4. Employees who retire immediately eligible to claim their pension and who give the Utilities proper notice (generally at least two-weeks) shall have 100% of unused vacation time converted into cash and deposited into their Post Employment Health Care Savings account, but only on the condition that they sign and do not rescind an agreement releasing claims arising out of their employment, in a form prescribed by the Utilities. 43. 457 DEFERRED COMPENSATION The Utilities will match funds contributed by employees, up to a maximum contribution of $2,500.00. These plans are administered by the Minnesota State Deferred Compensation Plan and/or Wenzel & Associates’ John Hancock Plan. Employees in the Management Pay Group are eligible for an additional employer matching (dollar for dollar) contribution up to 2.5% of the manager’s annual base salary, conditioned on the individual providing the Utilities with authorization for the necessary payroll deduction and subject to applicable legal limits to such contributions. All Utilities employees are subject to Minnesota law capping public employee salaries based on the Governor’s salary. Certain definitions and exclusions apply from time to time to the calculation of salaries under that cap, including, for example, vacation and sick leave allowances. Leave Credit In Lieu Of Compensation. Each employee will be paid that portion of the employee’s assigned salary that is permitted by law to be paid. An employee whose salary and other forms of compensation exceed the amount permitted by law to be paid is entitled to receive paid leave time in lieu of that portion of the salary that exceeds the amount permitted by law to be paid. The amount of such paid leave credit will be calculated using the employee’s annual rate of pay established pursuant to the applicable compensation policy and plan. The Commission and the General Manager are each authorized to establish the assigned salary using the provisions of this policy and the compensation plan established by the Commission. Further information about this Leave Credit is available from management or Human Resources upon request. For more information about the Utilities’ benefit plans consult the summary plan descriptions that have been distributed to each employee, additional copies of which are also available upon request. 128 42 January 2020 44. HEALTH INSURANCE COVERAGE For eligible employees who regularly work 30 hours per week, and enroll in a health insurance plan provided by the Utilities, the Utilities will pay seventy-five percent (75%) of the monthly premium per employee/family for health insurance. The Utilities currently offers a Health Savings Account-related plan. Plans and plan designs may change from time to time. The amount of the monthly premium for a health insurance plan over and above 75% of the total monthly premium for health care coverage is the responsibility of the employee. Employees should consult the Summary Plan Descriptions of the available plans for details regarding coverage and eligibility. A copy of these descriptions will be provided to employees and is available upon request. 45. DENTAL INSURANCE Eligible employees who regularly work at least 30 hours per week and who enroll in the Utilities’ dental insurance plan, the Utilities will pay seventy-five percent (75%) of the monthly premium per employee/family for dental insurance. Any monthly premium over and above 75% of the dental coverage is the responsibility of the employee. Employees should consult the Summary Plan Description for details regarding coverage and eligibility. A copy of this description will be provided to employees and is available upon request. 46. LONG-TERM DISABILITY A Long-Term Disability Plan is provided to eligible employees who regularly work at least 30 hours per week. Schedule amount: 60% of Monthly Earnings subject to a maximum amount of $5,000.00 per month. Employees must be employed for two (2) months to qualify for coverage. Employees should consult the Summary Plan Description for details regarding coverage and eligibility. A copy of this description will be provided to employees and is available upon request. 47. LONG TERM CARE INSURANCE Long Term Care Insurance is available to employees, at the employee’s election and expense, upon application and approval by the insurance provider. Employees should consult the Summary Plan Description for details regarding coverage and eligibility. A copy of this description will be provided to employees and is available upon request. 48. LIFE INSURANCE Life insurance is provided to each employee at a rate of Two and One Half times (2½) the employee’s annual salary, to a maximum of $85,000.00. Employees should consult the 129 43 January 2020 Summary Plan Description for details regarding coverage and eligibility. A copy of this description will be provided to employees and is available upon request. 49. VISION INSURANCE Eligible employees who regularly work at least 30 hours per week are eligible to enroll in the Utilities’ vison insurance plan. The monthly premium for vision coverage is the responsibility of the employee. Employees should consult the Summary Plan Description for details regarding coverage and eligibility. A copy of this description will be provided to employees and is available upon request. 50. HOME COMPUTER LOAN POLICY In an effort to encourage all employees to develop and improve their computer skills, employees may purchase a home computer per the following guidelines. 1. The purchased computer and software shall be new, not reconditioned, not used. 2. The purchased computer shall be used in the employee’s home. 3. Employee must provide a receipt reflecting the purchase of this computer. 4. The Utilities will provide an interest-free loan for the purchase of this computer up to $1,200.00, for a term not to exceed 12 months. 5. Employee will repay the computer loan to the Utilities in not more than 25 equal installment payments authorized and made through payroll deduction, upon the employee’s election by signed authorization form. 6. Employee must maintain ownership and possession of the computer for the duration of the loan term. 7. If the employee leaves the Utilities before the loan is paid back in full, the Utilities will withhold the outstanding portion of the loan from the employee’s final paychecks (including any check for unused and unpaid benefits) as authorized by the employee in the authorization form signed at the time the loan is made. 51. EDUCATIONAL ASSISTANCE The Utilities will provide financial assistance to eligible employees for pre-approved courses that are job related, lead to a job-related degree, or are within areas beneficial to the Utilities in its discretion and pursuant to this policy. With regard to education required by the Utilities or in connection with a Utilities-approved apprenticeship training program, check with a Utilities manager or Director. 1. All full-time Utilities employees with at least three months of continuous employment are potentially eligible for reimbursement under this policy. 2. The Utilities may pay up to 100% reimbursement of the costs for tuition, registration, fees, books and course required materials after successful completion 130 44 January 2020 of a pre-approved course. Courses must be at accredited colleges, universities, or vocational schools or be short courses conducted by recognized professional training organizations. 3. A course may be approved if: a) It is directly related to the employee’s work for the Utilities. b) It is required by a program of study leading to a degree that is directly related to the employee’s work for the Utilities. c) It will improve the employee’s work for the Utilities. d) It is expected to be completed within a time acceptable to the Utilities. 4. This policy will not cover recreational or personal interest courses. 5. Prior to registration, the employee must have full approval for the course from Utilities’ management designated as having approval authority for such matters. 6. The Utilities reserves the right to disapprove educational assistance requests and to amend or eliminate this policy from time to time in its discretion. 7. Total reimbursements to an employee during the academic year may not exceed $3,000. 8. Not eligible for reimbursement are costs of: a) late fees and fees due to an employee error b) meals, transportation, lodging, insurance, etc. 9. If an employee is eligible for education assistance from any outside source (e.g.: G.I. Bill, grants, scholarships, etc.), the employee must apply for any assistance first and request the balance through this Education Assistance Policy. 10. Termination of employment prior to completion of a course will disqualify the employee for educational assistance. 11. Courses not satisfactorily completed within the time expected or otherwise acceptable to the Utilities will not receive reimbursement but must instead be paid for by the employee. 12. Course attendance and preparation must take place outside of scheduled work hours and must not jeopardize the employee’s work performance. 13. Employees will be paid for any time used in attending courses for which they are required by the Utilities to attend. All tuition and fees for such course will be paid for by the Utilities. 131 45 January 2020 LEAVES OF ABSENCE The Utilities provides leaves of absence according to the following policies. Unless otherwise indicated, all leaves of absence are unpaid. However, employees taking unpaid leave are required to concurrently use any paid vacation or other paid time they have available concurrently with their unpaid leave, beginning with using accrued paid vacation time. An employee requesting a leave of absence must complete a Request for Leave of Absence form. Forms for requesting a leave of absence are available from the Human Resources Representative. When possible, advance notice of a leave should be provided to an employee’s supervisor so work schedules can be adjusted accordingly. 52. PARENTING LEAVE Under the Minnesota Parental Leave Act, a Minnesota employee who has worked for the Utilities for at least 12 months and who has worked at least one-half (1/2) time during the twelve (12) months preceding a leave is entitled to take up to twelve (12) weeks of unpaid leave as follows: • An eligible biological or adoptive parent make take such leave for the birth or adoption of a child; and • An eligible female employee may take such leave for prenatal care or incapacity due to pregnancy, childbirth, or related health conditions. An employee requesting parental leave must give the Utilities at least thirty (30) days advance notice of the start and end dates of the requested leave, unless such notice is not possible due to legitimate unanticipated factors in which case as much notice as is possible should be given. For a leave for the birth or adoption of a child, the leave must begin within either 12 months of the birth or adoption or, if the child must remain in the hospital longer than the mother, within 12 months of the child leaving the hospital. Insurance benefits will continue during the leave, but the employee must pay his or her portion of the premiums during the leave and will be required to reimburse the Company for premiums paid by the Company during the leave if the employee does not return to work following the leave. If any employee is eligible for parental leave under both the FMLA and the MN Parental Leave Act, the parental leave time taken under the Company’s FMLA leave policy will run concurrently with time taken under this policy. 132 46 January 2020 If you are eligible for both unpaid MN parental leave and any paid vacation or long-term disability insurance, you must use this paid time off or salary continuation benefit during any MN parental leave period up to the amount needed to cover the entire parenting leave. Following leave under this policy, an employee will be reinstated to his or her same job or one with comparable duties, hours, and pay. 53. MINNESOTA SICK FAMILY MEMBER OR SAFETY LEAVE A Minnesota employee who has worked for the Utilities for at least 12 months and who has worked at least one-half (1/2) time during the past twelve (12) months may use his or her accrued sick time to care for the employee’s sick or injured child, stepchild, foster child, adopted child, adult child, spouse, sibling, parent, parent-in-law, stepparent, grandparent, or grandchild (including a biological, step, foster, or adopted grandchild) for reasonable times as the employee’ s attendance may be necessary. This type of leave is referred to as a “Sick Family Member Leave”. In addition, a Minnesota employee who has worked for the Utilities for at least 12 months and who has worked at least one-half (1/2) time during the past twelve (12) months may use his or her accrued sick time to receive assistance or provide assistance to the employee’s child, stepchild, foster child, adopted child, adult child, spouse, sibling, parent, parent-in-law, stepparent, grandparent, or grandchild (including a biological, step, foster, or adopted grandchild) because of domestic abuse (as defined in Minn. Stat. §518B.01), sexual assault (as defined in Minn. Stat. §§609.342, 609.3453, or 609.352), or stalking (as defined in §Minn. Stat. 609.749). This type of leave is referred to as a “Safety Leave.” Eligible employees are limited to using a maximum of 160 hours of sick time in any 12- month period for a Safety Leave or for a Sick Family Member Leave resulting from the illness of or injury to the employee’s adult child, spouse, sibling, parent, parent-in-law, stepparent, grandparent, or grandchild. Sick time under this policy must be used in the same manner as the employee would use the sick time for his/her own illness. Please note that, if an employee is also eligible for FMLA leave to care for a sick family member, FMLA leave and Minnesota sick leave time will run concurrently. 54. SCHOOL ACTIVITIES LEAVE POLICY Employees who have worked at least one-half time during the preceding twelve months are entitled to up to 16 hours leave during any 12-month period to attend school conferences or classroom activities related to the employee’s child, provided the conferences or classroom activities cannot be scheduled during non-work hours. If an employee’s child receives child care services or attends a pre-kindergarten regular or special education program, the employee may use the leave time to attend a conference, or 133 47 January 2020 activity related to the employee’s child, or to observe and monitor the services and program, provided the conference, activity or observation cannot be scheduled during non-work hours. When the need for leave under this section is foreseeable, the employee must provide reasonable prior notice of the leave to his or her immediate supervisor and make a reasonable effort to schedule the leave so as not to unduly disrupt Utilities business. Regular paid sick leave may not be used for purposes of this school activities leave. 55. BONE MARROW AND ORGAN DONATION LEAVE Employees who work an average of twenty (20) or more hours per week who seek to undergo a medical procedure to donate bone marrow or an organ or partial organ will be granted up to forty (40) hours of paid leave. Regular sick leave need not be used when this Bone Marrow and Organ Donation Leave policy is applicable to the circumstances. The Utilities may require verification by a health care provider of the purpose and length of each leave requested by the employee pursuant to this policy. 56. NATIONAL GUARD AND RESERVE LEAVE Any officer or employee of the Utilities who is a member of the National Guard or other reserve unit is entitled to a leave of absence from public office or employment without loss of pay, seniority status, efficiency rating, vacation leave, sick leave, or oth er benefits for the time that he/she is engaged with the reserve in training or active service so long as such leave does not exceed a total of fifteen (15) days in any calendar year. Such leave will be allowed only in cases where the required military or naval service is satisfactorily performed. Such leave will not be allowed unless the officer or employee: • Returns to the public position immediately on being relieved from such military or naval service and not later than the expiration of the time herein limited for such leave; or • Is prevented from returning to Utilities employment by physical or mental disability or other cause not due to the officer’s or employee’s own fault; or • Is required by proper authority to continue in such military or naval service beyond the time herein limited for such leave. 57. MILITARY LEAVE FOR UNIFORMED SERVICE Except as provided otherwise in the National Guard and Reserve Leave Policy above, employees who are members of, apply to perform, or have an obligation to perform service in a uniformed service will be granted an unpaid leave of absence to perform such service. Military leave requests shall be made to the immediate supervisor. The term “uniformed 134 48 January 2020 service” means the Armed Forces, the Army National Guard and the Air National Guard when engaged in active duty, active duty for training, initial active duty for training, inactive duty training, full-time National Guard duty, the commissioned corps of the Public Health Service, and any other category of persons designated by the President in time of war or emergency. As soon as an employee is informed of the dates of the military training, he or she should notify his or her supervisor and request a leave of absence, even if he or she has not yet received written orders. In the case of an employee whose period of military service is less than 31 days, an employee must report back to his or her job at the first regularly scheduled shift after the completion of military service and the time required for return from the place of military service to the place of civilian employment. An employee called to active duty for more than 30 days, but less than 181 days, must report back to his or her job not more than 14 days after the completion of his or her military service. An employee called to active duty for more than 180 days must report back to his or her job not more than 90 days after the completion of his or her military service. This Policy is not intended to preclude leave with pay as may be provided in the National Guard and Reserve Leave Policy above. 58. JURY/WITNESS DUTY LEAVE Employees will be allowed a leave of absence pursuant to state statute without restriction or sanction when called for jury duty. • An employee performing jury duty or subpoenaed as a witness in court or voluntarily serving as a witness on behalf of the Utilities in a case in which the Utilities is a party will receive the difference between his/her regular rate of pay and the amount received as juror or witness up to the maximum allowed by state or federal law. • The employee must notify his/her supervisor and complete a leave of absence form within 48 hours of receiving call for jury duty. • An employee excused or released from jury duty during his/her regular work hours must report to his/her supervisor immediately thereafter. • Time spent on jury duty will not count as time worked in computing overtime. 59. PERSONAL LEAVE DAY Each January 1st, every regular employee will be credited with one day of paid personal leave, which will be available to be taken during the next 12 months, with the scheduling approval of management. This day, if unused, will not be carried over from year to year, and it is not paid out or converted upon separation from employment. 135 49 January 2020 60. BEREAVEMENT LEAVE A leave of absence, with pay and fringe benefits may be granted to a regular full-time employee for a maximum of three (3) days in the event of the death of a spouse, child, parent, brother, sister, grandparent, grandchild, or parent-in-law, brother-in-law, sister-in- law, grandparents-in-law, step-parents, step-siblings and step-children. 61. GENERAL LEAVE The Utilities recognizes that circumstances of a unique personal nature may cause an employee to seek time off without pay. The Utilities may, at its sole discretion, grant unpaid personal leaves of absence to employees (“General Leave”). Approval is required of the employee’s immediate supervisor and the General Manager before General Leave will be granted. In no event will General Leave be granted for longer than ninety (90) days, unless special approval is received from the General Manager. Vacation and sick leave will not accrue during a General Leave. Further, the employee on General Leave will not be eligible for holiday pay during the leave. The Utilities will not contribute to the cost of insurance premiums for an employee on General Leave. Employees are expected to return from General Leave when the reason for the leave expires. Employees who take a General Leave have no right to reinstatement. 62. VOTING LEAVE; SERVICE AS ELECTION JUDGE Under Minnesota Statutes Section 204C.04, employees who are eligible to vote in an election to fill a vacancy in the office of United States Senator, United States Representative, State Senator or State Representative, or a presidential primary have the right to be absent from work for the time necessary to vote and return to work on the day of that election without penalty or deduction from salary or wages because of the absence. The Utilities will not abridge or interfere with this right. The Utilities will provide an employee with paid time off to serve as an election judge, provided that the employee gives the Utilities at least 20 days’ advance written notice. The Utilities will reduce the employee’s pay by the amount the employee is paid to serve as an election judge. 63. PAID LEAVE DONATION With the written consent of the Utilities’s General Manager or Finance Manager, employees wishing to do so may voluntarily donate accrued paid leave time that is presently available for use as sick leave by the donor employee to a co-worker who is experiencing a major or catastrophic life event in the form of a medical emergency, loss of 136 50 January 2020 a family member, or other extraordinary circumstance (subject to management approval) necessitating time off from work for which the receiving employee has insufficient paid time off available. Examples of such a life event include, but are not limited to, a heart attack, stroke, organ transplant, or other medical condition of the employee or a family member for whose care the employee bears substantial responsibility. An employee will be eligible to receive and use donated paid leave only if the following conditions are satisfied: 1. The receiving employee must submit a request for paid leave donation in the form prescribed by the Utilities. 2. The receiving employee’s request for leave must be based on medical need to be absent from the workplace that is supported by documentation from a health care provider. 3. There is a reasonable expectation based on a treating provider’s documentation that the receiving employee will return to work within a reasonable time following any leave of absence unless the employee qualifies for long term disability insurance benefits. 4. The receiving employee is currently eligible to accrue sick leave under the Utilities’s policies. 5. The receiving employee has exhausted all of the employee’s own paid leave time including all sick, vacation, compensatory, and other paid time. 6. The sick leave taken by the receiving employee will not be subject to income replacement by disability or workers compensation insurance. The following additional conditions apply to leave donation under this policy: 1. The total amount of paid leave donated to any individual employee in any rolling twelve month period measured backward from the employee’s most recent request for leave donation may not exceed 240 hours. 2. Donation of paid leave is permanent and final and cannot be rescinded. Donated paid leave may not be transferred back to the donor under any circumstances. If the donated paid leave is not used by the receiving employee it is forfeited by all parties. 3. Donated paid leave time may be used by the receiving employee only for purposes of the medical leave necessitated by the catastrophic life event supporting leave donation under this policy. 137 51 January 2020 4. Donated paid leave may be used by the receiving employee only for work time actually and necessarily missed due to the leave taken for the purpose set forth in the leave request submitted under this policy, and for no other purpose. 5. Donated paid leave may be used by the receiving employee only to replace the employee’s normal work hours lost, up to a maximum of the receiving employee’s FTE (measured as of the date on which the leave begins). 6. Donated paid leave must be used by the receiving employee concurrently with any applicable unpaid leave available to the receiving employee. 7. Donated paid leave must be used during the leave taken for the purpose submitted in the leave request under this policy. 8. Donated paid leave not used the leave as described in No. 7, above, will be forfeited by the recipient. 9. All donations must be made in increments of eight (8) hours subject to a limit of 16 hours per donor to a particular recipient per year. Leave donation must be in one of the following configurations: i) a total of eight hours of sick leave; ii) a total of eight hours of vacation; iii) a total of sixteen hours, with eight hours being vacation and eight hours being sick leave; or iv) a total of sixteen hours, with sixteen hours being vacation time. 10. The donor employee must complete a leave donation form prescribed by the Utilities in order to donate paid leave. 11. When used by the receiving employee, donated paid leave will be paid at the receiving employee’s current rate of pay. 12. The donation of paid leave time will permanently decrease the amount of accrued unused paid leave in the donor’s paid leave account(s) and thereafter will not be counted or used by the donor or the Utilities for any purpose. For the avoidance of doubt, this means, among other things, that donated paid leave time does not qualify to be counted as unpaid sick leave for purposes of any severance pay calculation. 13. The Utilities will treat the identity of donor employees under this policy as private and confidential information. 14. This policy applies on a prorated basis to part-time employees eligible to accrue and receive paid leave time. GP:4825-6370-3216 v3 138 52 January 2020 RECEIPT AND ACKNOWLEDGMENT (EMPLOYER COPY: MUST BE SIGNED AND RETURNED TO MANAGEMENT) By signing this receipt, I acknowledge that I have received a copy of the Elk River Municipal Utilities Employee Handbook (the “Handbook”). This Handbook and the policies contained or referenced in the Handbook supersede and replace previously- issued handbooks, contrary oral or written statements of employment policy, and contrary employment practices. I understand that the Employee Handbook may be amended at any time, with or without notice. I understand that I do not have a protected property interest in my employment with the Utilities. I also understand that neither this Handbook nor any provision in it creates a contract of employment for any particular duration between the Utilities and me. I acknowledge that it is my responsibility to become and remain informed about the employment policies and practices of the Utilities and to abide by the rules, regulations, standards and policies of the Utilities, including those contained in this Handbook. I also understand that any violation by me of the Utilities’ rules, regulations, policies, practices, or standards is just cause for discipline, up to and including termination of my employment. Date Print or Type Name Employee Signature GP:4825-6370-3216 v3 139 G.4f2 – Controlled Substances 1.0 Drug and Alcohol Policy and Procedures The abuse of drugs and alcohol is a nationwide problem which affects persons of every age, race and gender. The Elk River Municipal Utilities recognizes that work performance and safety problems are created when employees use or abuse illegal drugs and/or alcohol. Elk River Municipal Utilities has established the following policy on drug and alcohol testing provisions. 2.0 Purpose The purpose of this policy is to provide written guidelines in compliance with Minn. Stat. 181.950-181.957 for requesting or requiring employees or job applications to undergo drug and/or alcohol testing. Elk River Municipal Utilities prohibits the possession, consumption, sale, transfer, or “being under the influence” of alcohol or illegal drugs during employment. Further, employees are prohibited from being at work under the influence of drugs or alcohol, including those prescribed by a doctor that may in any way adversely affect an employee’s alertness, coordination, reaction, response, or the safety of others. 3.0 Coverage All employees of Elk River Municipal Utilities are covered by this policy. All applicants, and persons currently employed by Elk River Municipal Utilities may be required to take a drug and alcohol test. 4.0 Objectives A. To create a safe and healthy environment for all employees to work in. B. To provide professional, efficient services to the public with employees utilizing their full potential. C. To reduce the costs directly and indirectly associated with substance abuse in our workplace. D. To assure fairness and equality in the administration of this policy. E. To set forth the procedures for the administration and implementation of this program. 140 5.0 Duty Elk River Municipal Utilities does not have a legal duty to request or require drug or alcohol testing. 6.0 Applicability The Elk River Municipal Utilities may request or require alcohol and/or drug testing of the following individuals and under the following circumstances: A. Job applicants for positions requiring pre-employment physical. Testing will not be required until a job offer has been made. B. Employees who, during assigned work schedules, the employer has reasonable suspicion to believe that the employee: 1. Is under the influence of drugs or alcohol; 2. Has violated the employer’s written work rules prohibiting the use, possession, sale, or transfer of drugs or alcohol while the employee is working or whole the employee is on the employer’s premises or operating the employer’s vehicle, machinery, or equipment, provided the work rules are in writing and contained in the employer’s written drug and alcohol testing policy. 3. Has sustained a personal injury, as that term is defined in Minnesota Statutes section 176.011, subdivision 16, Workers Compensation, or has caused another employee to sustain a personal injury; or 4. Has caused a work-related accident or was operating or helping to operated machinery, equipment, or vehicles involved in a work-related accident. C. Employees who have been referred by the Elk River Municipal Utilities for chemical dependency treatment or evaluation or who are participating in a chemical dependency treatment program under an employee benefit plan, in which case the employee may be requested to undergo drug and alcohol testing without prior notice during the evaluation or treatment period and for a period of up to two (2) years following completion of any prescribed chemical dependency treatment program. D. Should any employee or employees feel that they have reasonable suspicion to believe that their supervisor is under the influence of drugs or alcohol, they should contact another supervisor, General Manager, or any member of the Elk River Municipal Utilities Commission. 141 7.0 Requirements and Procedure A. Elk River Municipal Utilities will post and maintain a notice in appropriate and conspicuous locations at its facilities that this policy has been adopted and that copies are available for inspection at a specified location. B. All personal injuries sustained while working for Elk River Municipal Utilities, and all work-related accidents will be reported to an on-duty supervisor by the person involved in the injury or accident and/or witness to the injury or accident. If no supervisor is on duty at the time, one will be called at home. The notified supervisor will then determine whether to request drug/alcohol testing of the injured person, the person causing the injury, or the person involved or causing a work-related accident. Any employee tested under this section of the policy may be suspended, pending further investigation. C. When a supervisor determines that an employee should be tested, the employee will be told that in the supervisor’s opinion, the employee appears to be impaired and in a state unfit to work. The employee may request another supervisor to be present during the discussion. During this discussion, the employee shall be asked if he/she has been drinking alcohol or has taken legal or illegal drugs. A written record of the questions and the employee’s replies and actions will be maintained. D. The employee has the right to refuse testing. Refusal will result in disciplinary action taken against the employee. E. In the event an employee agrees to testing, regardless of whether the employee admits or denies taking legal or illegal drugs, the supervisor will explain that the employee will be driven to the designated medical facility where the testing/screening will be administered. The employee will NOT be allowed to drive to or from the designated facility on his/her own accord. 8.0 Rights of Employees and Job Applicants to Refuse Testing A. Applicants. IF a job applicant refuses to submit to an alcohol and/or drug test, any offer of employment will be withdrawn and the individual will not be considered for employment by Elk River Municipal Utilities. B. Employees. Employees have the right to refuse to submit to alcohol and/or drug testing. Employees or prospective employees, who refuse to provide a specimen, or have adulterated a specimen, will be dismissed. 9.0 Employee/Job Applicant Rights After A Test A. Within three (3) days after receiving notification of a positive test result, an individual may submit any information to explain the result and request in writing a confirmatory retest of the original sample at the employee’s or job applicant’s own expense. 142 B. An employee or job applicant may request and receive from Elk River Municipal Utilities a copy of the drug or alcohol result report. 10.0 Effect of Positive Test A. Applicants. If a job applicant tests positive on a test for alcohol and /or drugs, other than medications prescribed by a physician, any offer of employment will be withdrawn and the individual will not be considered for employment by Elk River Municipal Utilities. B. Employees. Employees, who test positive for alcohol and/or drugs for the first time, will be given the opportunity to enter an approved drug and/or alcohol counseling or rehabilitation program at the individual’s expense or through the employer’s health care provider. Elk River Municipal Utilities will consult with a substance abuse professional before approving a program. Employees who refuse to enter or fail to complete a program may be dismissed. Employees who elect to enter a program may be placed on probation for up to two (2) years by Elk River Municipal Utilities. The probation will not affect the employee’s use of sick leave or vacation. During probation period, the employee will be required to submit to unannounced follow-up alcohol and/or drug testing. Failure to comply with this requirement or a positive test result during the probation period will result in immediate dismissal. Upon successful completion of the probationary period with negative test results during that period, the employee will be reinstated employment status. Employees who have once tested a confirm positive will be terminated if they test a confirmed positive at a later date. Adopted December 9, 1997 143 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4g Organization, Staffing, and Compensation PURPOSE: With this policy, the Commission sets forth the responsibilities of the General Manager with respect to the ERMU organization structure, staffing levels and position-based compensation practice. POLICY: The Commission expects the General Manager to continuously evaluate the human resource needs of ERMU and to advise the Commission regarding the organization structure, staffing levels, position-based compensation practice, and use of contracted services that will best achieve the organizational results set forth in the Goals and Results Policy, the Strategic Plan, and the Annual Business Plan/Budget. As set forth in the approved Policy establishing the Commission’s Wage & Benefits Committee, the General Manager will keep the Committee fully informed and the Committee will periodically advise the Commission about the organization’s human resource needs. The General Manager’s responsibilities shall include: 1. Presenting to the Wage & Benefits Committee, at least annually and in conjunction with the Commission’s review and approval of the Annual Business Plan/Budget, an Organization and Staffing Plan detailing overall staffing levels and organizational structure. 2. Presenting to the Wage & Benefits Committee, at least annually and in conjunction with the Commission’s review and approval of the Annual Business Plan/Budget, an Employee Compensation and Benefits Plan. The Employee Compensation and Benefits Plan shall set forth market-competitive compensation ranges and benefits for each authorized permanent position in the ERMU organization. Included in the Employee Compensation and Benefits Plan which is presented for Commission approval shall be the Wage & Benefits Committee’s recommendation of Cost Of Living Adjustment (COLA). 144 ERMU Commission Policy – G.4g Organization, Staffing, and Compensation ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 3. Presenting for Commission approval, as part of the Annual Business Plan, a Budget that will support the staffing and contracted services levels described in items 2 and 3 above. 4. Upon approval by the Commission of the Annual Business Plan, Budget, Organizational Chart and Employee Compensation and Benefits Plan, managing ERMU and its staffing and contracted services at the budgeted levels, with appropriate allowance for changes in workload requirements and the limitations of the market for qualified employees and contracted services. The General Manager shall assign specific responsibilities to the positions approved, shall designate the employees that fill specific positions and their compensation, and shall engage contracted services as provided in approved ERMU Policies. 5. If the Commission fails to timely approve the Annual Business Plan, Budget or Employee Compensation and Benefits Plan, managing ERMU and its workforce as necessary to serve ERMU’s customers within projected revenues. 6. Considering the evolving utility industry, the changing expectations of ERMU’s customers and stakeholders, advances in technology, relevant employment/service markets and other factors that impact ERMU’s workforce requirements and its ability to meet those requirements. 7. Maintaining current and accurate organization charts that identify all authorized management and staff positions and their reporting relationships as well as the status of those positions (occupied or vacant). 8. Maintaining current and accurate position descriptions or equivalent documentation of the qualifications, accountabilities, and working conditions for each authorized permanent or temporary position in the ERMU organization. POLICY HISTORY: Adopted August 8, 2017 145 G.4g1 – Performance Metrics and Incentive Compensation 1.0 Purpose and Summary The successful performance of the ERMU is measured in terms of the Utilities’ ability to meet our strategic goals and mission. By improving our efficiency and level of performance in meeting our strategic goals and mission we can improve the delivery of value to our customers. To create incentives for employees to take personal responsibility for accomplishment of the Utilities’ strategic goals and mission, the Utilities has established a Utilities Performance Metrics-based Incentive Compensation system (“UPMIC”). Through UPMIC the employees of ERMU will have an opportunity, as a group, to earn annual incentive compensation for each qualifying employee by contributing individually to the overall success of ERMU on a daily basis. Under UPMIC, either all qualifying employees will earn an incentive compensation distribution in a given year, or none will. And not only will incentive compensation under UPMIC in that sense be an all or nothing proposition each year, but there will be an equal percentage share basis for all on which the incentive compensation will be paid out if earned. This appropriately reflects the reality that we all succeed, or fall short, together as a team. To administer the UPMIC and measure objectively the level of performance that must be achieved for qualifying employees to earn incentive compensation, the attached UMPIC Performance Metrics Policy Score Card (“Score Card”) has been created. The Score Card will be subject to revision annually based on the performance metrics adopted by the Commission annually for the coming year (“Performance Metrics”). By tracking and measuring the Performance Metrics and creating incentive for employees to achieve the goals the Metrics embody, the Utilities believes it will be better able to focus efforts and resources on becoming more efficient and successful in meeting our strategic goals and mission and delivering improved value to our customers. 2.0 Utilities Performance Metrics Score Card As reflected on the Score Card, the Performance Metrics are divided into the following three categories: Safety, Reliability and Quality of Utility Services; Workforce Development; and 146 Financial Goals. These categories are used to characterize the overall strategic goals and mission of ERMU. Under the Performance Metrics, these three main categories are then divided into various weighted factors, or sub-categories. These sub-categories, their percentage weight, and the goal or target for each, shall be established by the Utilities Commission annually. The Performance Metrics as adopted are reflected in the attached Score Card. As discussed above, the Performance Metrics and thus the Score Card are subject to modification and adoption by the Commission annually, which will normally occur during the Utilities’ budgeting process. 3.0 Utilities Performance Incentive Compensation Distribution Criteria Under the UMPIC a Performance-Based Compensation Incentive, if earned, will be distributed to Qualifying Employees annually. The total amount available to be earned by Utilities employees as a Performance Based Compensation Incentive each year will be an amount up to 2% of the Utilities’ total gross wages paid to Qualifying Employees during the Measurement Period. The measuring period used to calculate how much, if any, of the Performance-Based Compensation Incentive the Utilities employees have earned will be the calendar year (the “Measurement Period”). After the Measurement Period is complete and the Commission has received its audit in the spring of the year following the Measurement Period, the Performance Metrics will be applied to determine whether the Performance-Based Compensation Incentive has been earned for the Measurement Period. In doing so, the performance of the Utilities in each sub-category will be reviewed. If the sub-category performance meets or exceeds the established goal, the sub-category will be scored with the designated percentage that will contribute to a total Performance Metrics Multiplier to be used as a factor in calculating the distribution earned, if any, as shown in the Score Card (“Multiplier”). The Multiplier has a maximum factoring effect of 100%. The Multiplier is used to determine how much, if any, of the amount established by the Commission for the UMPIC Performance-Based Compensation Incentive has been earned in the Measurement Period. (For example if the Multiplier equals 100%, the distribution would equal 2%. If the Multiplier equals 75%, the distribution would equal 1.5%.) In other words, the amount established by the Commission may be earned on an annual basis by the group of Qualifying Employees (as defined below in Section 4.0) in whole, in part, or not at all. After the Multiplier is calculated on the Score Card, the Performance Based Compensation Incentive earned, if any, will be distributed to Qualifying Employees. The total amount to be distributed as the Performance Based Compensation Incentive will be the product of: a) the Multiplier; and b) 2% of the Utilities’ total gross wages paid to Qualifying Employees during the Measurement Period. The percentage of the Performance Based Compensation Incentive awarded to each Qualifying Employee will be based on the gross wages of each Qualifying Employee during the Measurement Period. To each Qualifying Employee, the distribution would be allocated in a lump sum equal to the product of: a) the Multiplier; and b) 2% of that employee’s gross wages paid during the Measurement Period. (For example, if a Qualifying Employee’s gross wages earned during the Measurement Period were equal to $50,000 and the Multiplier was equal to 100%, the total distribution to that employee would be equal to: $50,000 x 2% x 100% = $1,000.) 147 If the Utilities’ margins are negative due to sudden and unforeseen material changes to the industry or customer base, the Commission reserves the right to withhold distribution of the Performance Based Compensation Incentive in any given year. 4.0 Employee Qualifications and Distribution of the Incentive Compensation An employee of the Utilities will be eligible for participation in the Performance Metrics Incentive Compensation distribution if the employee meets the following eligibility requirements and is therefore a “Qualifying Employee” for purposes of this policy. a. The employee is in good standing with the Utilities. An employee would not be eligible while on disciplinary probation or a performance improvement action plan. b. The employee was a Full Time or Part Time employee during the Measurement Period. Seasonal, and Temporary employees are not eligible. The UMPIC Performance Based Compensation Incentive distribution will be made to Qualifying Employees on the first payroll date after the thirty day period following the date on which the Commission formally receives its annual auditor’s report in an open meeting. Adopted December 12, 2012 Revised January 14, 2020 GP:3300714 v4 148 Elk River Municipal Utilities G.4g1a - Performance Metrics and Incentive Compensation Policy Score Card - 2020 Category Percent Sub-Category Sub-Percent Goal Score Awarded Multiplier Percentage Water Quality Standards 5 Meet Requirements Lead and Copper quality 5 90th percentile Bacteria Detection 5 0 positive samples CAIDI 5 <120 Min SAIDI 5 <90 Min SAIFI 5 < 0.5 Line Loss 5 <5% Water Loss 5 <12% Clean Energy Choice Program Participation 5 +15 Employee Turnover 10 < 7.5% Participation in Recommended and Mandatory Trainings 10 > 95% Margins/Net Profit 20 > Budget Reserves 10 > Target Inventory Accuracy 5 > 95% Total Multiplier: Adopted December 12, 2012 Revised October 11, 2016 Revised December 17, 2019 Safety, Reliability and Quality of Utility Services 40 Workforce Development 25 Financial Goals 35 149 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4h Financial Planning and Budgeting PURPOSE: With this policy, the Commission affirms the importance of financial planning and budgeting and sets forth its expectations for the General Manager in terms of the effective development, implementation, monitoring, and updating of the Commission’s approved Financial Plan and Business Plan/Budget. (See Strategic and Business Planning Policy) POLICY: The General Manager will propose for Commission approval a Financial Plan that supports the Strategic Plan and provides credible projections of expenses and revenues (in major categories), reserve fund balances, and key financial ratios for not less than five (5) future fiscal years. The General Manager will propose for Commission approval a Business Plan/Budget for each fiscal year that is reasonably consistent with the projections contained in the Commission’s approved Financial Plan. Within the financial limits established by the Commission through its approved Financial Plan and Business Plan/Budget, the General Manager shall provide adequate resources for the effective execution of the Strategic Plan and for the accomplishment of the specific operating and financial results contained in the Business Plan/Budget. Consistent with this general statement, the General Manager shall implement financial planning and budgeting that: 1. Is based on credible assumptions about variables that are likely to affect ERMU’s future financial performance. 2. Includes credible projections of revenues, expenses, cash flow, mandatory and discretionary reserve funds, fund balances, and key financial ratios for a period of at least five (5) future fiscal years. 150 ERMU Commission Policy – G.4h Financial Planning and Budgeting ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 3. Includes credible projections of capital expenditures and borrowing needs. 4. Includes credible revenue requirements and general retail rate adjustment needs. 5. Recognizes the need for appropriate adjustments or contingencies that may arise during implementation as a result of changed conditions and unexpected events. 6. Clearly communicates the connection between planned expenditures of resources and the expected business results as identified in the Strategic Plan and the Business Plan/Budget. 7. Does not violate the Commission’s policy on Financial Condition and Transactions. 8. Provides financial support for the Commission’s activities in the amount that is needed for the Commission to fulfill its statutory duties and to govern with excellence. POLICY HISTORY: Adopted August 8, 2017 151 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4i Financial Condition and Transactions PURPOSE: With this policy, the Commission sets forth its expectations for the General Manager concerning ERMU’s financial condition and transactions. POLICY: The General Manager shall not intentionally cause or allow ERMU’s financial condition to become precarious or to materially deviate from the Financial Plan or Business Plan/Budget. The General Manager shall not allow financial transactions to occur outside of the boundaries established by other applicable provisions of the Commission’s governance policies. The General Manager shall not allow financial reporting that fails to comply with applicable standards for governmental accounting. Consistent with this general statement, the General Manager shall: 1. Provide monthly financial reports to the Commission which accurately and adequately describe ERMU’s financial condition. 2. Provide quarterly financial report presentations which discuss any material changes (1% or greater of annual revenues or expenditures for each utility enterprise) to the projections for the balance of the fiscal year including any appropriate remedial actions. 3. Not allow the cumulative expenditure of funds during a fiscal year to exceed by more than $1 million the amounts that have been allocated through the approved capital and operating budgets without prior approval by the Commission in the form of a budget amendment. 4. Advise the Commission of any individual project expenditure in excess of 10% above the approved budgeted amount. 152 ERMU Commission Policy – G.4i Financial Condition and Transactions ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 5. Not reallocate an amount greater than $500,000 among line items in the approved capital and operating budgets without prior approval by the Commission in the form of a budget amendment. 6. Advise the Commission of any financial transaction or event deemed by the General Manager to have a substantial impact on ERMU’s financial condition. 7. Not take any financial action that violates bond covenants or otherwise jeopardizes ERMU’s ability to obtain favorable bond ratings. 8. Not allow working capital and other designated reserves to fall below the levels established in the Financial Plan. 9. Make payroll and pay other financial obligations in a timely way. 10. Collect or otherwise resolve receivables. 11. Implement internal policies and procedures that comply and ensure timely accounting and reporting of financial condition and transactions in accordance with legal or regulatory requirements, and generally accepted industry practices. 12. Not acquire, encumber, or dispose of real property without approval of the Commission. POLICY HISTORY: Adopted August 8, 2017 153 ______________________________________________________________________________ Page 1 of 1 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4i1 Investments PURPOSE: With this policy, the Commission sets forth its expectations for the General Manager concerning the investment of ERMU funds. POLICY: The General Manager shall not allow investments of ERMU funds that conflict with the requirements of applicable federal, state, and local laws and regulations governing the investment of public funds (Including Minnesota Statutes Chapter 118A. Deposit and Investment of Local Public Funds). Management responsibility for the investment program is hereby delegated to the General Manager, acting under the guidance of the Financial Reserves and Investment Committee Charter. The General Manager shall prepare for Commission approval and, upon approval, implement a Management Investment Policy that sets forth ERMU’s policy, standard of prudence, objectives, delegation of authority, suitable investments, internal controls, performance standards and reporting requirements for ERMU investments. In addition, the General Manager shall inform the Commission routinely about ERMU’s investment performance, the content and application of the Management Investment Policy, and other investment matters that support the Commission in meeting its fiduciary requirements. POLICY HISTORY: Adopted December 12, 2017 154 ______________________________________________________________________________ Page 1 of 1 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4i2 Financial Reserves PURPOSE: With this policy, the Commission sets forth its expectations for the General Manager concerning the maintenance of ERMU’s financial reserves. POLICY: The General Manager shall ensure that ERMU maintains cash reserves for its electric and water utility enterprises that are reasonable, prudent and necessary to: 1. Meet or exceed the requirements of all bond covenants 2. Demonstrate to rating agencies and investors that ERMU’s utility enterprises are credit worthy 3. Provide liquidity that is adequate, along with other risk-management measures, to ensure ongoing operation of the utility systems 4. Stabilize revenue requirements and customer rates 5. Manage the level of debt by funding a portion of the capital investments In addition, the General Manager shall prepare for Commission approval and, upon approval, implement a Management Financial Reserves Policy that sets forth the designated reserve funds to be maintained, along with their purposes and methods for determining appropriate target levels and requirements for internal controls, monitoring and reporting. Designated reserve funds may include, but are not limited to reserves restricted for debt service and unrestricted designated reserves. POLICY HISTORY: Adopted December 12, 2017 155 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4i3 Debt Issuance and Payment PURPOSE: With this policy, the Commission sets forth its expectations for the General Manager concerning Debt Issuance and Payment. This policy is subsidiary to the Financial Condition and Transactions Policy, and relates to Financial Planning and Budgeting Policy, and Cost Allocation and Recovery Policy. POLICY: The General Manager, when preparing ERMU’s Financial Plan and Business Plan/Budget for Commission approval, shall consider and present the benefits and costs of borrowing funds in relation to the benefits and costs of using income and revenues to secure adequate funding for infrastructure and operations. Factors to be considered and communicated to the Commission include, but are not limited to: revenue requirements, reserve fund balances, the cost of borrowing, the competitiveness of ERMU’s rates and charges for services, the desired relationship between those who will receive benefit from the borrowed funds and those who will pay for retirement of the debt, and ERMU’s overall financial condition and bond rating. Factors contributing to a favorable financial condition and bond rating include, but are not limited to: a consistent record of compliance with bond covenants, achievement of key financial ratios, determination of revenue requirements, establishment of adequate rates and charges for services, and compliance with generally accepted accounting and financial reporting practices. In addition, the General Manager shall: 1. Establish, as a part of any recommendation for the issuance of revenue bonds, adequate provisions for setting aside and pledging the income and revenue of the utility enterprise for which the bonds are issued into a separate and special fund to be used in the payment of the principal and interest on the revenue bonds. 2. Ensure that the income and revenues pledged for the bonds are allocated and deposited in conformity with the provisions of the revenue bond documents. 156 ERMU Management Policy – G.4i.3 Debt Issuance and Payment ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 3. Implement all necessary measures to assure that all required payments of principal and interest on the bonds are paid when due. 4. Monitor the accounts established under any bond documents to ensure that adequate funds are maintained therein, and recommend for approval by the Commission any transfer of funds required or permitted by the applicable law for the prudent operation of the utility. POLICY HISTORY: Adopted December 12, 2017 157 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4i4 Procurement PURPOSE: With this policy, the Commission sets forth its expectations for the General Manager concerning procurement of supplies and services for ERMU. POLICY: The General Manager shall establish management policies, procedures, and practices for procurement that are consistent with the requirements of the most current version of or successor to Minnesota Statute 471.345 Uniform Municipal Contracting Law, and which implement and comply with the following: 1. Contracts for procurement which are estimated to exceed $175,000 in value shall be presented to the Commission for specific approval. 2. Contracts for procurement with a value of less than $175,000 do not require specific Commission approval, but the General Manager shall report on the procurement to the Commission at the next regular Commission meeting if the contract amount exceeds $25,000 and the item has not been previously approved by the Commission as part of the Business Plan/Budget. 3. Contracts for procurement with a value of less than $25,000 may be entered into by the General Manager or his/her designee without approval or reporting to the Commission, but shall be reflected in ERMU’s financial records. In addition, the General Manager shall: 1. Designate specific delegated procurement authorities for selected ERMU managers and employees, by position title, based on type of procurement, dollar value, or other appropriate criteria. 158 ERMU Commission Policy – G.4i.4 Procurement Policy ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 2. Keep complete and accurate records of all procurement contracts demonstrating compliance with applicable legal and regulatory requirements, this Commission policy, and established management policies, procedures and practices. 3. Inform the Commission, as soon as practical after discovery, of any material violations of this policy, Minnesota law, or the conditions of a Commission contract approval. POLICY HISTORY: Adopted December 12, 2017 Revised July 9, 2019 159 G.4i5 – Purchase Orders 1.0 Purchase Order Policy In an effort to enhance documentation of purchasing materials and/or services, the following procedures shall be implemented: A. Any purchased item(s) or service(s) over $5,000.00 must have a pre-approved purchase order number. The Supervisor of the department will initiate the purchasing process by securing quotations or asking the Purchasing Specialist to secure quotations before the actual item is purchased. The General Manager or his designee will sign all purchase orders. A minimum of two quotations shall be required. B. Items or services under $5,000.00 may be purchased upon authorization of the Supervisor. C. Routine items such as office supplies, hardware, and small automatic parts will not require a purchase order at places of business where an account is established. The Supervisor must authorize purchase and he/she or employee must sign receipt at the place of business and submit such a receipt to the Purchasing Specialist. Revised April 9, 2013 160 G.4i6 – Public Purpose Expenditures 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. 161 2 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 162 3 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 163 4 tokens will be distributed and a lunch or breakfast will be provided, at a modest expense with prior General Manager approval. 2. ERMU supports recognizing years of service. The Employee Recognition Workgroup has identified the following milestones for recognition:  1 Year  3 Years  5 Years  10 Years  15 years  20 Years  25 Years  30 Years  35 Years Annually, the Employee Recognition Workgroup will review all upcoming anniversaries and recognition items that will be available for employee selection. The Workgroup will then include a program line item in the budget for ERMU Commission review and approval. 3. 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 164 5 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 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. 165 6 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 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 Revised November 12, 2019 166 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4j Cost Allocation and Recovery PURPOSE: With this policy, the Commission sets forth its expectations for the General Manager concerning cost allocation and recovery of costs for ERMU’s core customer services (See Core Customer Services Policy). POLICY: The General Manager shall operate ERMU in accordance with the Financial Plan (See Financial Planning and Budgeting Policy). Consistent with this general statement, the General Manager shall: 1. Annually report to the Commission on the performance and adequacy of ERMU’s rates, fees, and charges for utility services with respect to revenue requirements, provide an updated projection of revenue and revenue requirements in the Financial Plan (See Financial Planning and Budgeting Policy), and recommend an appropriate plan for rate adjustments as needed. 2. Provide, at least once every ten (10) years or sooner at Management or Commission discretion, and in conjunction with development of the Financial Plan, a full cost-of-service rate study for each of ERMU’s core customer services which fairly allocates costs among customer classes, provides for sufficient revenues, demonstrates that recommended rates are just and reasonable, and provides for competitive positioning with nearby service providers. 3. Recommend any new or adjusted rates, fees, or charges to the Commission for consideration and approval. 4. Implement any Commission-approved rates, fees, charges (or changes to same), provide adequate advance public notice and information to affected customers. 167 ERMU Commission Policy – G.4j Cost Allocation and Recovery ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 5. Apprise the Commission of and recommend any changes to existing cost-of-service allocation methods or practices concerning rates, fees, or charges that are inconsistent with good and accepted utility practice. POLICY HISTORY: Adopted August 8, 2017 168 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4j1 Rates and Charges for Electric Service PURPOSE: With this policy, the Commission sets forth its expectations for the General Manager concerning the establishment of rates and charges for ERMU’s electric services, as well as the dissemination of information that customers and their agents require to be fully informed about the conditions under which ERMU provides those services (See also Cost Allocation and Recovery Policy). POLICY: The General Manager shall prepare for Commission approval and, upon approval, implement electric service tariffs that apply to the services provided to every designated customer class. Each tariff shall be public, kept current, and shall include, but not be limited to, the following information: 1. Availability of service 2. Special conditions 3. Fixed rate components 4. Variable rate components 5. Power Cost Adjustment (PCA) 6. Minimum bill 7. Terms of payment 8. Special provisions (if any) In addition, the General Manager shall: 1. Recommend rates that are developed from accurate cost accounting data, and the application of cost allocation factors and rate structures that are based on accepted electric utility cost-of- service ratemaking principles. Rates and charges for electric service shall be uniform between 169 ERMU Commission Policy – G.4j.1 Rates and Charges for Electric Service ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 those customers located within the corporate limits of the City of Elk River and those who are not. 2. Prepare for Commission approval and, upon approval, implement a current schedule of fees and charges for related services that are not part of any published rate tariff. 3. Provide information and consultation that allows customers and customer agents to identify and apply for the rate tariff and type of service that result in the most favorable cost and conditions of service for the customer. 4. Make available to customers and their agents, at least annually, a current copy of the rate tariffs that are in effect. POLICY HISTORY: Adopted December 12, 2017 170 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4j2 Rates and Charges for Water Service PURPOSE: With this policy, the Commission sets forth its expectations for the General Manager concerning the establishment of rates and charges for ERMU’s water services, as well as the dissemination of information that customers and their agents require to be fully informed about the conditions under which ERMU provides those services (See also Cost Allocation and Recovery Policy). POLICY: The General Manager shall prepare for Commission approval and, upon approval, implement water service tariffs that apply to the services provided to every designated customer class. Each tariff shall be public, kept current, and shall include, but not limited to, the following information: 1. Availability of service 2. Special conditions 3. Special charges 4. Rates and Rate Tier Definitions 5. Minimum bill 6. Terms of payment 7. Special provisions (if any) In addition, the General Manager shall: 1. Recommend rates that are developed from accurate cost accounting data and the application of cost allocation factors and rate structures that are based on accepted electric utility cost-of- service ratemaking principles. 2. Prepare for Commission approval and, upon approval, implement a current schedule of fees and charges for related services that are not part of any published rate tariff. 171 ERMU Commission Policy – G.4j.1 Rates and Charges for Water Service ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 3. Provide information and consultation that allows customers and customer agents to identify and apply for the rate tariff and type of service that result in the most favorable cost and conditions of service for the customer. 4. Make available to customers and their agents, at least annually, a current copy of the rate tariffs that are in effect. POLICY HISTORY: Adopted December 12, 2017 172 1 G.4j3 – Customer Deposits 1.0 Policy In order to protect all customers from those customers who default on their accounts, customer accounts may be subject to this deposit with Elk River Municipal Utilities (ERMU). Deposit Required: All residential, commercial and industrial customers of ERMU will be required to submit a deposit in the acceptable form set forth below subject to the exceptions set forth below. In addition, existing customers who have been disconnected by ERMU for non-payment of amounts due shall be required to submit a deposit in addition to all amounts owed before service will be reconnected. Existing customers who are establishing a new account or adding an additional account are also subject to the deposit policy. Failure to submit the required deposit at the time of application for commercial accounts, or when due for residential accounts, shall be cause for ERMU to immediately terminate service. Amount of Deposit: Residential Customers: The amount required to be deposited for residential services shall be: $100 for apartments $100 for water and sewer service $150 for electric service $250 for all services Commercial Customers: The amount required to be deposited for commercial and industrial services shall generally be equal to two times ERMU’s estimate of the customer’s highest monthly utility bill. For commercial and industrial customers on the non-demand rate, the minimum deposit will be $250. For customers on the demand electric rate, the minimum deposit will be $1,000. ERMU may increase or decrease the security deposit based on assessment of risk. 173 2 Form of Deposit: The deposit shall be in the form of a cash deposit or an irrevocable letter of credit. If in the form of an irrevocable letter of credit, the letter of credit shall be renewed at least 30 days prior to its expiration. Failure to renew a letter of credit will result in the letter of credit being drawn on and the cash recovered from the letter of credit being held by ERMU as a cash deposit. If ERMU is not able to draw on the letter of credit, the customer shall submit a cash deposit prior to expiration of the letter of credit. Failure to submit the required deposit shall be cause for immediate termination of service by ERMU. Receipt for Deposit: At the time the deposit is made ERMU will furnish the customer with a written receipt specifying the conditions, if any, the deposit will be diminished upon return. Return of Deposit: Any deposit received by ERMU shall be returned to the customer within 45 days of termination of service, provided that the customer has paid in full all amounts due on the account. If the customer has not paid in full within 30 days of the termination of service, the deposit will be applied to any outstanding amounts owed by the customer to ERMU. If the deposit exceeds the amount due, the balance will be returned to the customer. If the deposit is not sufficient to cover the amount due, the customer shall remain liable to ERMU for the balance and shall pay the balance due within 15 days of notice from ERMU. ERMU reserves the right to use reasonable legal means to collect amounts due. Interest on Deposits: Interest shall be paid on all deposits in excess of $20 at the rate established by Minnesota Statutes. ERMU may, at its option, pay the interest at intervals it chooses, but at least annually, by direct payment or as a credit on the customer’s account. Submission of and Exceptions to Deposit Requirement: A. Residential Customers. Residential customers may submit the required deposit at the time service is requested, or have the deposit billed with the customer’s first bill for services provided. Failure to pay a deposit when billed shall be cause for ERMU to immediately terminate service. ERMU may, in its discretion, waive the required deposit for residential customers if the customer consents to ERMU’s collection of credit history data on the customer, the customer’s credit score is above 90 percent probability of non-default, and the customer has no history of disconnection for non payment to ERMU, and no history of late payments to ERMU two times in 12 months. B. Commercial and Industrial Customers. All commercial and industrial customers will complete an application for service that identifies the individual or business entity that will be entering into a service agreement and will pay an application fee per the fee schedule. All commercial and industrial customers shall submit the required deposit and enter into a service agreement 174 3 with ERMU prior to the time service is desired. The service agreement shall be an agreement on the part of the individual or business entity to make payment of all amounts billed by ERMU for electric, water and sewer services, and to be liable for any default or non-payment of amounts billed by ERMU. ERMU may, in its discretion, reduce or increase the required deposit for commercial and industrial customers if a service agreement is executed by the customer, the customer has provided ERMU with sufficient information to allow ERMU to analyze the credit risk of the individual or business entity executing the service agreement, and ERMU, in its sole discretion, determines to reduce or increase the deposit required based on its analysis. Adopted 3/9/2010 Revised 2/14/2012 Revised 6/16/2015 Revised 2/9/2016 Revised 1/9/2018 GP:2740880 v4 175 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4k Minnesota Municipal Power Agency Relationship, Representation, and Governance PURPOSE: With this policy, the Commission sets forth its expectations for the General Manager concerning the relationship between Elk River Municipal Utilities (ERMU) and the Minnesota Municipal Power Agency (MMPA). By ERMU accepting the provisions of the Agency Agreement and By-Laws of MMPA through Resolution 13-5, and as parties to a full- requirements Power Sales Agreement and Membership Agreement, ERMU and MMPA have long-term obligations to each other with respect to wholesale power supply and delivery in which MMPA is the service provider and ERMU is the member. As parties to these agreements, ERMU represents the interests of its electric customers and the City of Elk River as one of MMPA’s Member communities. ERMU also participates in the governance of MMPA through its representation on MMPA’s Board of Directors. POLICY: The ERMU General Manager shall be ERMU’s representative on the MMPA Board of Directors and a Commissioner shall serve as the alternate representative. The General Manager shall ensure that ERMU’s contractual and working relationships with MMPA are handled in a collegial manner and with diligent attention to ERMU’s best interests when ERMU is acting as an MMPA customer, and to balance the best interests of MMPA when ERMU is acting as an MMPA member. The General Manager shall make every reasonable effort to prevent the relationship between ERMU and MMPA from becoming contentious or unproductive. Consistent with this general statement, the General Manager shall: 1. Support MMPA by providing the staff time and other resources that may be reasonably requested by MMPA in connection with its services to and ongoing business relationship with ERMU as a customer. 176 ERMU Commission Policy – G.4k MMPA Relationship, Representation, and Governance ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 2. Make available to MMPA the leadership, staff support, and other resources of ERMU as determined necessary to support ERMU’s interests as a member-owner while also ensuring that such support to MMPA does not jeopardize ERMU’s own needs and interests independent of MMPA. 3. Communicate routinely about MMPA and its relationship with ERMU to the Board, employees, customers, and other stakeholders. POLICY HISTORY: Adopted September 12, 2017 177 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4l Protection of Assets PURPOSE: With this policy, the Commission sets forth its expectations for the General Manager concerning the protection of ERMU’s assets. POLICY: The General Manager shall not allow ERMU’s assets to be unprotected, inappropriately used or disposed of, inadequately maintained, or placed at undue risk. Consistent with this general statement, the General Manager shall: 1. Maintain comprehensive security program, property insurance program and loss prevention program which adequately protect ERMU from significant damage or loss to its corporate assets including, but not limited to, physical assets, real property, rights-of-way, corporate image or credibility, intellectual property, and information. 2. Not allow any investment of ERMU funds that violates State of Minnesota law, any provision of ERMU’s bond indentures (as adopted and amended), or the provisions of any present or future Commission-approved investment policy (See Investments Policy). 3. Implement and maintain management policies and procedures that establish effective and sufficient controls with appropriate checks and balances, including separation of duties, which are regularly tested for adequacy and compliance. Functions that require such management policies and procedures include, but are not limited to designation of banking signatories and transactions, cash management, accounting, and procurement of goods and services. 4. Maintain a comprehensive physical asset inspection and proactive maintenance program consistent with accepted utility industry practice. 178 ERMU Commission Policy – G.4l Protection of Assets ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 5. Maintain comprehensive operating procedures aimed at safeguarding equipment and preventing improper wear and tear consistent with accepted utility industry practice. 6. Maintain a corporate records management program to safeguard paper and electronic files from loss, significant damage, or improper disposition in accordance with applicable laws and regulations (See Legal and Regulatory Compliance Policy). 7. Maintain competitive positions or business arrangements that safeguard’s the business purpose and financial return of ERMU’s assets. POLICY HISTORY: Adopted September 12, 2017 179 G.4l1 – 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. 180  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.) may carry family members as passengers if such accompaniment does not 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 Revised July 9, 2019 181 G.4l2 – Inventory 1.0 General Policy The Utility has supplies and equipment that is utilized for electric and water infrastructure construction and maintenance. Inventory management is an important operational issue because it affects capital requirements, costs and customer service. 2.0 Recording Inventory Use Employees that utilize inventory are required to accurately record its use as follows:  Determine/estimate items needed to perform the particular project/day’s work;  Remove required items from inventory stock;  Transfer items to vehicle being used to travel to the project/work site;  Upon completion of the project/day’s work, record inventory items used on the inventory sheet to be turned in for record keeping; and  Return any unused items to inventory stock in a timely manner. 3.0 Regular Counts On at least an annual basis, inventory counts are to be performed and a reconciliation of any discrepancies completed to account for all inventory used and inventory still in stock. Because there are inventory items that justify more careful planning and attention, such items will be reviewed with higher frequency. Significant items (as identified by purchasing and management) including items costing over $1,000 per piece or high risk items (such as wire with high salvage values) will be counted quarterly. A reconciliation will be performed for any discrepancies to account for all inventory used and inventory still in stock. 182 4.0 Equipment There is equipment that is not in inventory but which is necessary for the completion of electric and water infrastructure construction and maintenance. Items such as chain saws, power drills, crimping tools, etc. are resource investments that need to be managed. A listing of these items, with the quantity and location of each item, will be maintained and periodically reviewed for accountability. Computers, specifically, are one of the items for which such an itemized list is to be maintained and periodically reviewed. The minimum review period will be quarterly. 5.0 Ensuring Accuracy Employees are responsible for and must take steps to ensure the accuracy and completeness of inventory reporting data. In addition, employees that utilize and transport inventory must take necessary steps to safeguard such inventory from loss or theft. When an employee submits inventory reporting data, he or she is attesting to the accuracy of the data. Knowingly submitting or approving inaccurate inventory reporting data or careless reporting such data is a violation of policy and may subject the person to appropriate disciplinary action. Adopted December 22, 2009 183 G.4l3 – Mobile Device Guidelines 1.0 Purpose and Summary These guidelines pertain to ERMU employees and Utilities Commissioners who are issued a device purchased by the ERMU. The purpose of these guidelines is to outline the responsibilities and care required for utilities-issued iPad or tablet devices. The devices are intended to be utilized by ERMU staff and Utilities Commissioners for the purpose of enhancing meeting workflow, reducing the use of paper agenda packet materials, improve staff efficiency, and to improve the timeliness of Utilities Commission, staff, and customer communication. 2.0 Utilities Use Issued devices are intended for professional use. ERMU does not maintain loaner devices, so users will be responsible for conducting meetings without a device in the event of a lost or misplaced device.  Devices shall be maintained in a suitably charged state during work hours.  Inappropriate media may not be used as a screensaver or background photo.  Devices will be secured with a minimum eight (8) digit numeric pass code.  Sound shall be muted at all times unless needed for instructional purposes.  Personally-owned music, games and apps may only be present on ERMU-issued device when using a personal Apple ID iTunes account.  In case a device is restored to its original condition, the user is responsible for restoring any personal content.  ERMU is not responsible for backing up personal related content.  Users may save work locally on the device. It is strongly recommended that users utilize the ERMU-designated online storage technology.  Information stored on the iPad or tablet device could be classified as public, private, or other data and is governed by the Minnesota Government Data Practices Act (MN Statute Chapter 13) and must be treated accordingly. 184  Staff and Utilities Commissioners should retain information stored on the iPad or tablet device in keeping with ERMU policies and procedures per the General Records Retention Schedule. 3.0 Personal/Home Use The iPad or tablet device is a powerful computing tool. ERMU-issued devices may be taken home provided the use is consistent with the Email/Internet portion found in the ERMU Employee Handbook as well as any other relevant ERMU policy. Failure to adhere to ERMU policies shall result in the revocation of such use privilege.  Users are allowed to connect devices to non-city wireless networks.  While instruction and advice may be offered, ERMU is not responsible for home network use or support.  It is the policy of ERMU to maintain the right to access and disclose any and all messages communicated through electronic means when ERMU-issued equipment is used. Regardless of the intent of the message (business or personal), any employee involved has no right to privacy, or to the expectation of privacy, concerning the content of any message or the intended destination of any message when using ERMU-issued equipment. 4.0 iPad Care Users will be held responsible for the maintenance and care of assigned communication devices.  Keep batteries charged and ready for use at meetings.  Clean the view screen with a soft, dry cloth or anti-static cloth as needed.  Do not lean or place anything on the screen that may cause damage.  Utilize the protective case at all times.  When not in use, store in a secure location. Never leave in an unlocked car or any other theft-prone area.  Immediately report lost stolen, malfunctioning or damaged devices to ERMU.  Stolen devices must be reported immediately to the local authorities.  Consult with ERMU before connecting or syncing devices to another computer. 5.0 Application Software All software applications purchased and installed by ERMU must remain on the device in a usable condition and be accessible at all times. Users are responsible for personal software applications and are responsible for installation and backup.  Software purchased by ERMU will be done through an ERMU Apple ID iTunes or similar account.  Users are allowed to purchase and download personal applications providing they are not profane, obscene or offensive to others.  ERMU is not responsible for the loss of any personal software applications when the device is updated, tested with diagnostic tools or restored to its original state. 185  Storage space needed for ERMU applications will take precedence over space used for personal items. 6.0 Acknowledgement All Utilities Commissioners and ERMU staff who are assigned an iPad or tablet device shall be provided a copy of these guidelines and shall acknowledge receipt and understanding of the provisions outlined herein. The guidelines may be updated as needed. I agree that I will use the ERMU-issued iPad or tablet device in accordance with the specifics outlined in this user agreement. I also understand that use of an ERMU asset is a privilege that may be revoked at any time. Printed Name: ___________________________________ Signature: _______________________________________ Date: ___________________________________________ Adopted May 14, 2013 186 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4m Corporate Risk Management PURPOSE: With this policy, the Commission sets forth its expectations for the General Manager concerning ERMU’s corporate risk management. POLICY: The General Manager shall not allow ERMU to operate without a corporate risk management program which both identifies and assesses the risks which ERMU faces, and then prudently manages and mitigates risks which could negatively affect achievement of the Results Policies. Consistent with the preceding general statement, the General Manager shall: 1. Conduct, at least once every five (5) years, a risk identification and assessment that describes significant risks in terms of the cause or type and estimates ERMU’s exposure to each including the potential range of financial loss (See Protection of Assets Policy). 2. Maintain, communicate and enforce an active risk management, mitigation and reporting program, including policies and practices. 3. Prudently protect ERMU, the Commission, management, and staff from claims of liability. 4. Protect ERMU against significant risks of loss using prudent levels of insurance coverage (See Protection of Assets Policy). 5. Maintain and comply with the Financial Reserve Policy (See Reserve Funds Policy) in conjunction with the Annual Business Plan. 6. Maintain an emergency/disaster preparedness and business restoration plan that is reviewed annually and adjusted as needed to cover changing risks and business requirements. 187 ERMU Commission Policy – G.4m Corporate Risk Management ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 7. Engage competent legal counsel and maintain sufficient staff resources, internal review procedures, and controls to avoid imprudent contractual and legal risks (See Legal and Regulatory Compliance Policy). 8. Engage competent legal counsel/regulatory consultants and maintain sufficient staff resources and internal review procedures and controls to avoid regulatory risks due to non- compliance with applicable present and proposed future regulations (See Legal and Regulatory Compliance Policy). POLICY HISTORY: Adopted September 12, 2017 188 ______________________________________________________________________________ Page 1 of 1 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4n Legal and Regulatory Compliance PURPOSE: With this policy, the Commission sets forth its expectations for the General Manager concerning ERMU’s compliance with laws and regulations that are applicable to ERMU. POLICY: The General Manager shall not cause or intentionally allow any practice, decision, action or circumstance within the ERMU organization that is unlawful or in violation of any applicable regulation. Consistent with this general statement, the General Manager shall: 1. Keep the Commission informed of legal and regulatory developments that could potentially impact ERMU and its operations, either positively or negatively 2. Retain the services of legal counsel and/or regulatory consultants and use such services as required to obtain timely and accurate advice and counsel on existing and proposed laws and regulations that are or may be applicable to ERMU. 3. Inform the Commission and the Commission’s legal counsel of any known, suspected, or potential material violations of this policy as soon as practical after they are discovered. 4. Advise the Commission of appropriate responses to any known, suspected, or potential material violations of this policy based on advice from legal counsel, regulatory consultants, and ERMU management or staff. POLICY HISTORY: Adopted September 12, 2017 189 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policy Reference: Policy Title: G.4o Environmental Stewardship PURPOSE: With this policy, the Commission sets forth its expectations for the General Manager concerning ERMU’s environmental stewardship. POLICY: ERMU will make decisions and manage its operations with appropriate consideration of the environmental consequences and will encourage and enable customers to make wise use of the utility services that ERMU provides. Consistent with this general statement and as allowed by the Commission through the approved business plan and budget, the General Manager shall develop and implement policies, procedures, and programs that: 1. Provide customers with educational materials, programs, products, and other resources that promote and support the efficient consumption of energy and water. 2. Ensure that ERMU facilities are designed, constructed, operated, and maintained in compliance with applicable environmental laws, regulations, and permit requirements. (See Legal & Regulatory Compliance Policy). 3. Contribute to the visual appeal of the ERMU service area by maintaining and, where prudent and cost effective, enhancing the appearance of its facilities. 4. Support those customers who desire to produce on their premises, purchase from ERMU, or sell to ERMU electricity that is derived from recognized renewable resources. Note: ERMU will negotiate renewable energy customer contracts in good faith with the assistance of the Minnesota Municipal Power Agency (MMPA) and within the legal limitations of ERMU’s contracts with MMPA, and consistent with state law. 5. Minimize the waste produced from its operations and reuse or recycle its waste products where prudent and cost-effective. 190 ERMU Commission Policy – G.4o Environmental Stewardship ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 6. Support ERMU leadership in promoting and participating in community dialogue about environmental issues and values associated with the planning, construction, operation, and maintenance of its facilities. POLICY HISTORY: Adopted October 10, 2017 191 Adopted 5-19-1998 G.4o1 – Water Use Restrictions 1.0 Procedure A. Until further notice, a sprinkling ban has been declared in Elk River. No sprinkling is allowed from 10:00 A.M. to 6:00 P.M. B. Those with even addresses may sprinkle before 10:00 A.M. and after 6:00 P.M. on the even days and those with odd numbered addresses may sprinkle before 10:00 A.M. and after 6:00 P.M. on odd numbered days. 192 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Mangement Policy Reference: Policy Title: G.4p External Communications PURPOSE: With this policy, the Commission sets forth its expectations for the General Manager concerning ERMU’s external communications. POLICY: The Commission expects the General Manager, or an authorized designee of the General Manager, to be the point of contact for communications between ERMU and external interests including the news media, state or federal governmental and regulatory bodies, and the elected or appointed leaders of governmental jurisdictions in which ERMU operates. Such designation does not preclude the Commission Chair (or other Commission officer or member specifically designated by the Commission) from speaking on behalf of the Commission concerning matters of Commission policy or Commission action. The Commission expects all external communications to be reasonably consistent, timely, accurate, and clearly stated, with appropriate protection of any information that has been designated as confidential. Consistent with the above general statement, the General Manager shall: 1. Protect information that has been designated confidential, except in those situations where the release of such information has been explicitly authorized by the Commission or required by law or regulation, including the Minnesota Data Practices Act (Minnesota Statutes, Chapter 13). 2. Adopt appropriate management policies and procedures to ensure that ERMU management and staff are fully aware of their individual responsibilities and limitations with respect to information management and external communications. These policies will include a data practices policy; a records management policy; and a communications policy. 193 ERMU Commission Policy – G.4p External Communications ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 Note: See Commission Member Role, Responsibilities, and Orientation; Commission Member Conduct; and Commission Officer Roles, Responsibilities and Succession for related policy provisions concerning external communications by Commission Members and Commission Officers. POLICY HISTORY: Adopted October 10, 2017 194 ______________________________________________________________________________ Page 1 of 1 COMMISSION POLICY Section: Category: Governance Delegation to Management Policy Reference: Policy Title: G.4q Community Involvement PURPOSE: With this policy, the Commission establishes its expectations for the General Manager with respect to ERMU’s engagement with the communities that it serves. POLICY: The General Manager shall be responsive to community needs and values by communicating proactively with community leaders and by maintaining a strong community presence in support of the Commission’s Authority and Purpose Policies. Consistent with this general statement, the General Manager shall: 1. Develop, implement, monitor, and improve community engagement strategies and programs that align with ERMU’s business objectives and are aimed at improving the quality of life in the various communities that ERMU serves. 2. Promote the economic vitality of the ERMU service area. 3. Promote Commission approved economic development incentives, special rates, or terms and conditions for utility services, as described in ERMU’s customer service rules, regulations and rate tariffs. 4. Encourage and support employee volunteerism that supports ERMU’s community involvement strategies and programs within the various communities served by ERMU. 5. Inform appropriate community leaders and customers of ERMU’s community engagement strategies and programs and their benefits. POLICY HISTORY: Adopted October 10, 2017 195 G.4r – Mutual Aid 1.0 Elk River Municipal Utilities Mutual Aid Policy A. In the event if a natural disaster or catastrophic event resulting in the compromise of water or electric utilities outside Elk River Municipal Utilities’ service territory, Elk River Municipal Utilities may be contacted through utility associations, utility companies or cities to provide assistance. This request for assistance may be that of labor or equipment resources. At the discretion of the Utility Management, resources may be dispatched in such a way as to not compromise Elk River Municipal Utilities or their customers. Adopted February 24, 2009 196 ______________________________________________________________________________ Page 1 of 1 COMMISSION POLICY Section: Category: Governance Results Policies Policy Reference: Policy Title: G.5 Goals and Results PURPOSE: Well defined organizational core purpose policies are essential to establish goals, set criteria for organizational benchmarking and measurement, and ultimately produce desirable results. POLICY: The Commission will annually establish goals for the organization that are consistent with the Strategic Plan, Annual Business Plan (with budget) and Financial Plan. The Commission will annually review the results. POLICY HISTORY: Adopted May 9, 2017 197 UTILITIES COMMISSION Reference Guide ERMUMN.COM | 763.441.2020 | 13069 ORONO PARKWAY | PO BOX 430 | ELK RIVER, MN 55330-0430 198 ERMUMN.COM | 763.441.2020 | 13069 ORONO PARKWAY | PO BOX 430 | ELK RIVER, MN 55330-0430 OUR MISSION OUR VISION OUR VALUES OUR FUNDAMENTALS To provide our customers with safe, reliable, cost-effective and quality long-term electric and water utility services. To communicate and educate our customers in the use of utility services, programs, policies and future plans. These products and services will be provided in an environmentally and financially responsible manner. Provide exceptional services and value to those we serve. Honest, accountable and united in all that we do. Services that reflect excellence, dependability and expertise. Respectful and engaged interactions that are timely and clear. A culture that protects our customers, employees, and assets. Provide the best value for the services we deliver. Safety, Reliability and Quality of Utility Services. Customer Service and Employee Development. Competitive Rates, and Financial and Organizational Health. INTEGRITY QUALITY COMMUNICATION SAFETY COMPETITIVE 199 ERMUMN.COM | 763.441.2020 | 13069 ORONO PARKWAY | PO BOX 430 | ELK RIVER, MN 55330-0430 OUR PLANNING THEMES Improve the effectiveness of our communications inside the organization, with our customers and with the community. Develop our most valuable and vulnerable assets - our commissioners, employees, leaders, and future leaders. Create a culture of strategic thinking and ensure line of sight from mission to vision. Implement the prudent use of technology to improve efficiency and increase customer choice, communication and value. Assess the growth curve to make decisions regarding organizational change. Improve processes and measurement to better determine and report efficiency and effectiveness of organization and to ensure financial and organizational health. THEME 6 | PROCESS, MEASUREMENT AND FINANCIAL HEALTH THEME 1 | COMMUNICATION THEME 2 | PERSONNEL AND GOVERNANCE THEME 3 | STRATEGIC THINKING THEME 4 | TECHNOLOGY THEME 5 | GROWTH 200 Electric & Water Customers Utilities Commission General Manager Operations Director Water Superintendent Lead Water Operator Water Operator Water Operator Technical Services Superintendent GIS/Mapping Technician Electrical Technician / Electrician Electrical Technician Locator Locator Meter Reader Electric Superintendent Line Crew Foreperson Lead Lineworker Lineworker Lead Lineworker Lineworker Lead Lineworker Lineworker Lead Lineworker Lineworker Lead Lineworker Lineworker Field Crew Foreperson Lead Bore Rig Operator Bore Rig Operator Inventory & Procurement Foreperson HR Manager (Future) Executive Administrative Manager Communications & Admin Coordinator Engineering Manager IT/OT Technician Administrations Director Finance Manager Accountant AP/PR Specialist Customer Service Manager Billing Specialist Credit & Collections Specialist Customer Service Representative Customer Service Representative Customer Service Representative Customer Service Representative Conservation & Key Accounts Manager Organizational Structure February 11, 2020 45 FTE 201 Utilities Commission Members Paul Bell Email: pbell@ermumn.com Term Expires: 02/28/21 John Dietz, Utilities Chair Council Representative Email: jdietz@ermumn.com Term Expires: 02/28/22 Al Nadeau Email: anadeau@ermumn.com Term Expires: 02/28/23 Mary Stewart Email: mstewart@ermumn.com Term Expires: 02/28/22 Matt Westgaard Council Representative Email: mwestgaard@ermumn.com Term Expires: 02/28/23 202 ERMU Website and Employee Intranet Commissioners can access the most recent commission meeting minutes and packets on ERMU’s website. In addition, Commissioners also have access to ERMU’s Employee Intranet that houses the most up-to-date Policy Book. The following is a step-by-step guide on how to access commission meeting documents and the policy book. Access ERMU Commission Meeting Minutes and Packets  Log onto our website at www.ermumn.com  Click  Residential Button  Click  About Us  Click → Either Commission Meetings to access Meeting Packets or Commission Meeting Minutes to access Minutes  Scroll to the exact meeting date you are looking for and click on it  For prior commission meeting minutes, packets or resolutions, please visit the City of Elk River’s Laserfiche WebLink Access ERMU Policy Book  Log onto our website at www.ermumn.com  Click  Residential Button  Click  About Us  Click → Employee Intranet Login  You will then be prompted to sign into your account with your email address and password  Hover over Policy Book and click on the section you would like to view  Then click on the policy you would like to view 203 N:\Public Bodies\Handbooks\Laserfiche Weblink Instructions.docx Laserfiche WebLink Laserfiche WebLink is a user-friendly public portal to Laserfiche. WebLink hosts city, board and commission documents such as minutes, agendas, staff reports, resolutions, ordinances, planning items, etc., in a Laserfiche repository to an intranet or the Internet in read-only form. How Do I Access Laserfiche? There are two ways to access Laserfiche. 1)Directly at http://web1-elkr.ci.elk-river.mn.us/weblink8/Browse.aspx?dbid=1. 2)By visiting the city’s website at www.ElkRiverMN.gov. Hover over Services and Select Agendas and Meeting Materials. From that page, select Laserfiche. This will bring you to the Laserfiche Weblink. Access ERMU Commission Meeting Minutes, Packets and Resolutions Click →City Government folder Click →Boards and Commissions folder Click →Utilities Commission folder Click →Minutes, Packets, or the Resolutions folder you would like to access. Click →Year you would like to access. Scroll to the exact meeting date you are looking for and click on it. All the documents for that meeting packet will be listed in the right window pane. Click on the document you would like to open. They are listed by Item #. Item 1.0 typically is the agenda. The image format of the document will appear. Browse Tab-Click on this tab when you are in a document and you want to go back and open another document. Hit your browser’s back button to return to the Browse screen in Weblink. 204 N:\Public Bodies\Handbooks\Laserfiche Weblink Instructions.docx Search Tab-An overview of this function and the numerous ways to use it are provided on the search page when you open it up. Below is a sample copy of what the search screen will look like along with an explanation of some features. Three image formats are available when viewing documents using the Laserfiche Weblink: 1) PDF Format PDF This is the best format to view and print documents, but it requires Adobe Acrobat Reader be installed on your computer. This is a free tool from Adobe and can be downloaded from www.adobe.com. To view and print: 1.Click on the PDF icon PDF A window will open asking what page numbers to print. Choose the appropriate options and choose “Download & Print.” 2.To print the entire document, or multiple pages, click the print button and choose the appropriate options. 3.The document will open in either Adobe Reader or Adobe Acrobat. Use those buttons to manipulate and print the document. The names of the buttons on the toolbar will be displayed as you place your cursor over them. Do Not Use The Internet Browser Toolbar at the Top of Your Computer for Printing.) 205 N:\Public Bodies\Handbooks\Laserfiche Weblink Instructions.docx Icon Definitions Previous Page Next Page PDF Download document and print to a PDF file Always use this button to print a readable copy of the document. Pan Zoom and Pan Zoom In Zoom Out Fit Page Fit Width Hit your browser’s back button to exit the document and return to the Browse screen in Weblink. 2) Image Format (not recommended for printing) View Image(s) Allows you to view the document as an image. Each time you open a document in Weblink, your document opens on your screen as an image. If you print an image format of the document, your document will be fuzzy. 3) Text Format View Plain Text Allows you to view plain text only in order to copy and paste words only. Use this format if you wish to copy and paste text into another software program. The document can be printed in this view; however, there will be no formatting and it will look different from the original image. 206 N:\Public Bodies\Handbooks\Open Meeting Law.doc OPEN MEETING LAW The open meeting law applies to “any committee, subcommittee, department, board, or commission” of the city. With certain statutory exceptions, all board and commission meetings must be open to the public. Meetings may be closed only if closure is expressly authorized by statute or permitted by the attorney-client privilege. A meeting is a gathering of a majority of the members of a board or commission at which official business is discussed. It is not necessary that action be taken for a gathering to constitute a meeting. Serial meetings between groups of less than a quorum that are used to deliberate matters in order to avoid open meeting law requirements may also be found to be a violation, depending on the facts in the case. To understand how a serial meeting occurs, imagine that board member A talks to board member B about a city issue, board member B talks to board member C about that issue, and C talks to A. Serial meetings can occur through written correspondence, telephone calls, email, or through social media. See the enclosed Guidelines for Electronic Communications Between Members of Council, Commissions and Boards for additional information. Scheduling of meetings with the staff liaison will help prevent conflict with other groups over meeting times when public participation is particularly desired and could help prevent open meeting law violations. Intentional violations subject an individual to personal liability in the form of a civil penalty up to $300. 207 Page 1 of 2 Guidelines for Electronic Communications Between Members of Council, Commissions and Boards These guidelines apply to all members of the city council and all members of council and city committees, commissions, sub-committees, etc. in the City of Elk River. For purposes of these guidelines, reference to councilmembers includes members of all other city committees and groups subject to the Open Meeting Law. Reference to the council shall include all such groups and meetings. For purposes of these guidelines, “electronic means” means email, instant messaging, chatrooms, social media, microblogs and related electronic conversation. For purposes of these guidelines, “staff” means the administrator, city clerk, or his/her designee. These guidelines apply regardless of whether the councilmember is using a city-provided email address and account, his/her personal email address or account, or one provided by his/her employer; and to all social media accounts to which a councilmember posts. Meeting materials Electronic communication of meeting materials should generally be conducted in a one-way communication from a city staff person to the council. Councilmembers may receive agenda materials, background information, and other meeting materials via email attachment or other electronic means (such as file sharing) from city staff. If a councilmember has questions or comments about materials received, s/he should inquire via electronic means directly back to staff. A councilmember should not copy other committee members on his/her inquiry. If the clarification is one of value to other councilmembers, staff may send follow-up materials or information to the council. Materials relating to agenda items of a meeting must also be made available to the public at the meeting. Communication during council meetings Councilmembers should not communicate with one another via electronic means during a public meeting. Councilmembers should not communicate with any member of city staff via electronic means during a public meeting. Councilmembers should not communicate with the public via electronic means during a public meeting. Communication outside of council meetings Councilmembers should generally act with caution when using electronic means to communicate with one another, being mindful of the Minnesota Open Meeting Law. 208 Page 2 of 2 N:\Public Bodies\Handbooks\Electronic Communications.docx  If a councilmember wishes to share information with other members, s/he should do so through staff. The councilmember may request staff to distribute materials to others. The communication should not invite response to or discussion between any councilmembers, including replies to the person making the distribution request. This should be considered a method for providing one-way information to other members of the council. Again, remember that materials relating to agenda items for city business must be provided to the public at the meeting.  If a councilmember wishes to address only one other member through electronic means on any topic related to city business, s/he can do so directly but should be mindful of the following: o One-to one communication is ideal. o The recipient of an electronic message or inquiry should reply only to the sender, should not copy others on the reply, and should not forward the original communication to other councilmembers. o The sender of an electronic message should not forward or copy the recipient’s reply to any other councilmember. o Neither the recipient nor sender should publish such correspondence on any blogs or other social media site unless it is part of an official communication of the whole of the Council, and part of the city-managed electronic communication strategy.  If a councilmember receives an electronic communication from any source related to city business and distributed to multiple councilmembers (i.e. an email sent to the entire council from a member of the public; or an email sent to three council members from a local business), s/he should reply only to the sender. The reply should not be copied to all the original distribution or forwarded to any other councilmember.  If a councilmember receives listserv distributions, electronic newsletters, or participates in electronic discussion forums, chatrooms, or on Facebook, Twitter or blogs where other councilmembers are also likely to participate, the councilmember should not reply to any distribution or comment so that the reply is copied to the entire distribution group, or any part of the group that might include other councilmembers. The councilmember should instead respond only to the sender of any message or inquiry. Classification and retention of electronic communications  Regardless of whether electronic communication by a councilmember is taking place on a city-provided computer, home computer or other computer system, classification of information as public, private or other is governed by the Minnesota Government Data Practices Act (Minn. Stat. Chapt. 13) and should be treated accordingly.  Councilmembers should retain electronic communications in keeping with city policies and procedures, whether such communication takes place on a city-provided computer, home computer or other computer system. 209 DATA PRACTICES LAW The Minnesota Government Data Practices Act (MGDPA) is a series of state laws that attempt to balance the public’s right to know what their government is doing, individuals’ right to privacy in government data created, and maintained about them, and the government’s need to function responsibly and efficiently. The Data Practices Law governs all data maintained by a public entity. There are three classifications of data: 1. Public – Accessible to anyone; 2. Private/non-public – Accessible to the person who is the subject of the Data and to the governmental entity; and 3. Confidential/protected non-public – Accessible only to the governmental entity. The identity of individuals who register complaints concerning violations of state laws or local ordinances concerning the use of real estate/real property is confidential data. Data pertaining to members of boards and commissions is public governmental data: 1. Names of board and commission members are public. 2. Residential address. 3. Either a telephone number or electronic email address where the member can be reached, or both at the request of the appointee. Every city in Minnesota must comply with the MGDPA. Government data means all data collected, created, received, maintained, or disseminated by the city regardless of its physical form, storage media, or conditions of use. This includes data one receives or creates in the capacity of board member. The Act presumes that all government data are public and are accessible by the public for inspection and copying unless there is a federal law, state statute, or temporary classification of data that provides differently. Since the data a person collects, creates, receives, maintains, or disseminates in the capacity of board member is government data, a board member may wish to be careful about where the data is created, collected, etc. Government data can be easily, even accidentally, created at home or work that is both public and subject to a retention schedule and the board member may be required to produce the data if it is requested. Also, board members may wish to take care in what they say in their official capacity within emails or even text messages. There are significant civil penalties for willfully releasing private and confidential data and for willfully refusing to release public data. 210 CONFLICT OF INTEREST Conflict of interest questions arise periodically and can become complex. Generally, a legal conflict of interest occurs when you, as a member of a Commission, are slated to vote on a matter involving you and/or a business owned by you or a member of your family by blood or marriage. You could have a conflict of interest when the outcome could be economically advantageous to you, or to a member of your family, or to a business owned in whole or in part by you or a member of your family. In such cases, you have a responsibility to disclose this information to the Commission you serve and abstain from any discussion and/or vote on this matter. In addition to the above-mentioned situations, all Commission members must be aware of situations in which there is an appearance of conflict of interest. In some cases – such as an individual’s alliance to an organization or group – a matter may be pending before the Commission which will not benefit you or a family member, but may leave doubt as to that member’s ability to make an objective determination. Although there may not be any legal preemption from voting under such circumstances, discretion should prevail. The following points relating to conflict of interest are excerpts taken from ERMU Commission Policy - G.2e Commission Member Conduct: •Commission members are bound by, and will comply with, all State Statutes regarding conflicts of interest and Elk River City Code Sections 2-131 to 2-135. •In addition, Commission members will avoid any situation in which they stand to benefit individually through financial gain or influence. If such situations cannot be avoided, Commission members will disclose any known or potential conflicts, excuse themselves from any meeting during those times when the matter causing the conflict or potential conflict is under consideration, and abstain from voting in that matter. •Depending on the circumstances, a Commission member may disclose any known or potential conflict to the Commission Chair, the General Manager, or ERMU's Legal Counsel. Legal Counsel will be available to advise the Commission, individually or collectively, about potential conflicts. Generally, an individual Commission member will first approach the Commission Chair or the General Manager about a potential conflict. Legal Counsel is also available to advise the individual Commissioners in confidence about potential conflicts. 211 Utilities Commission Meeting Schedule2020 S M T W T F S S M T W T F S S M T W T F S S M T W T F S 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 5 6 7 8 9 10 11 5 6 7 8 9 10 11 5 6 7 8 9 10 11 4 5 6 7 8 9 10 12 13 14 15 16 17 18 12 13 14 15 16 17 18 12 13 14 15 16 17 18 11 12 13 14 15 16 17 19 20 21 22 23 24 25 19 20 21 22 23 24 25 19 20 21 22 23 24 25 18 19 20 21 22 23 24 26 27 28 29 30 31 26 27 28 29 30 26 27 28 29 30 31 25 26 27 28 29 30 31 S M T W T F S S M T W T F S S M T W T F S S M T W T F S 1 1 2 1 1 2 3 4 5 6 7 2 3 4 5 6 7 8 3 4 5 6 7 8 9 2 3 4 5 6 7 8 8 9 10 11 12 13 14 9 10 11 12 13 14 15 10 11 12 13 14 15 16 9 10 11 12 13 14 15 15 16 17 18 19 20 21 16 17 18 19 20 21 22 17 18 19 20 21 22 23 16 17 18 19 20 21 22 22 23 24 25 26 27 28 23 24 25 26 27 28 29 24 25 26 27 28 29 30 23 24 25 26 27 28 29 29 30 31 30 31 S M T W T F S S M T W T F S S M T W T F S S M T W T F S 1 2 3 4 5 6 7 1 2 3 4 5 6 1 2 3 4 5 1 2 3 4 5 8 9 10 11 12 13 14 7 8 9 10 11 12 13 6 7 8 9 10 11 12 6 7 8 9 10 11 12 15 16 17 18 19 20 21 14 15 16 17 18 19 20 13 14 15 16 17 18 19 13 14 15 16 17 18 19 22 23 24 25 26 27 28 21 22 23 24 25 26 27 20 21 22 23 24 25 26 20 21 22 23 24 25 26 29 30 31 28 29 30 27 28 29 30 27 28 29 30 31 Holidays Jan 1 - New Year's Day Nov 11 - Veterans Day Jan 20 - Martin Luther King Jr. Day Nov 26 - Thanksgiving Feb 17 - Presidents' Day Nov 27 - Day after Thanksgiving May 25 - Memorial Day Dec 24 - Christmas Eve July 4 - Independence Day Dec 25 - Christmas Day Sept 7 - Labor Day Commission meetings are held at Elk River Muncipal Utilities, 13069 Orono Parkway, Elk River, MN, unless otherwise posted. March June September December NOTE: ALL DATES ARE SUBJECT TO CHANGE Commission meetings are held the second Tuesday of each month and begin at 3:30 p.m. January April July October February May August November 212 MMPA Annual Meeting - To Be Determined. MMUA Summer Conference - August 24 - 26, 2020 - Cragun’s Resort 2020 UPCOMING EVENTS 213 1/1/2020 Travel Expense Guidelines for Commissioners Meals Food allowances are actual expenditures for meals and gratuity, excluding alcoholic beverages. When employees travel and incur expenses to be reimbursed for meals, please use the following guidelines for spending. This spending amount is based on the IRS established “per diem” amounts for general spending of travelling individuals. Itemized receipts must be submitted for reimbursement. When travelling for the entire day, the maximum to be reimbursed per day is $55. That can be distributed as $10 for breakfast, $20 for lunch, and $25 for dinner. This distribution per day is variable, as long as the maximum is not exceeded. For example, if $5 is spent on breakfast, $30 could be spent on dinner. If there are multiple days involved, the distribution per days is also variable. For example, if $45 is spent one day, $65 could be spent the next day. If you are travelling for a partial day, and only one or two meals are involved, please u se the guideline amounts per meal: $10 for breakfast, $20 for lunch, and $25 for dinner. If you are at an event where the meal is provided and included in the fee for the event, please have that meal unless there are extenuating circumstances why you cannot (such as allergies to certain foods.) Additionally, the IRS has established per diems for specific geographic areas of high cost. High cost areas are $76 per day, versus $55. So the per diem amount is different for Washington, DC (a designated high cost area) than Elk River, MN. If you are travelling to areas outside of Minnesota, and are concerned you may be visiting a high cost area, please feel free to visit the IRS website for a listing of these areas. Mileage The 2020 business mileage reimbursement rate is 57.5 cents per mile. Compensation Members of the Commission representing ERMU at meetings/conferences that are in addition to the commission meetings will receive a $75 per day stipend. 214 COMMONLY USED ACRONYMS A 1.ABS – Accounting and Business Solutions – National Information Solutions Cooperative (NISC) accounting software used by ERMU. 2.AC – Alternating Current – A flow of electric charge that alternates directions in a repetitive pattern 60 times per second. AC is the current distributed to homes and businesses. An advantage to AC is that it is relatively easy to change the voltage of the power with a transformer. This allows generators to send high voltages over long distances, making AC the cost-effective method for transmission. 3.AMI – Advanced Metering Infrastructure – An integrated system of smart meters, communications networks, and data management systems that enables two -way communication between utilities and customers. 4.AMR – Automatic Meter Reading – The technology to automatically collect consumption, diagnostic, and status data from water or electric metering devices and transfer that data to a central database for billing, troubleshooting, and analyzing. 5.APPA – American Public Power Association – The voice of not-for-profit, community- owned utilities that power 2,000 towns and cities nationwide. Represents public power before the federal government to protect the interests of the more than 49 million people that public power utilities serve, and the 93,000 people they employ. An advocate and adviser on electricity policy, technology, trends, training, and operations. 6.AWWA – American Water Works Association – An international, nonprofit, scientific and educational society dedicated to providing total water solutions assuring the effective management of water. Founded in 1881, the Association is the largest organization of water supply professionals in the world. B 7.BES – Bulk Electric System – The electrical generation resources, transmission lines, interconnections with neighboring systems, and associated equipment used to operate at voltages of 100kV or higher. 8.BNSF – Burlington Northern Santa Fe Corporation – A North American freight transportation company, with a rail network of 32,500 route miles in 28 states and 215 ELK RIVER MUNICIPAL UTILITIES COMMONLY USED ACRONYMS Page 2 of 15 three Canadian provinces, averaging 1,500 trains per day. Created in 1995 after a merger between Burlington Northern, Inc. and Santa Fe Pacific Corporation. C 9.CAIDI – Customer Average Interruption Duration Index – A measurement representing the weighted average length of an interruption for customers affected during a specific time period. The formula to determine this average is: CAIDI = sum of all minutes off for interruptions lasting more than 5 minutes divided by the total number of customers that experienced an interruption. 10.CapX2020 – Capital Expansion 2020 – A joint initiative of 10 transmission-owning utilities in Minnesota and the surrounding region formed to plan, upgrade , and expand the electric transmission grid to ensure continued reliable and affordable service. In 2017, CapX2020 successfully completed an 800-mile, nearly $2 billion grid expansion in the Upper Midwest. The projects included four 345-kV transmission lines in Minnesota, North Dakota, South Dakota, and Wisconsin and a 230-kV transmission line in northern Minnesota. ERMU purchased transmission assets through one of the 10 participants, Central Minnesota Municipal Power Agency. 11.CC&B – Customer Care & Billing – National Information Solutions Cooperative (NISC) billing software used by ERMU. 12.CDL – Commercial Driver’s License – A license required to drive commercial motor vehicle such as tractor trailers, semi-trucks, dump trucks, and passenger buses. There are three classes of CDLs that determine the kinds of vehicles you’re permitted to drive: Class A, Class B, and Class C. CDL classification is also determined by the vehicle's gross vehicle weight rating. 13.CIP – Conservation Improvement Program – A program that assists households and businesses with conserving energy, reducing carbon dioxide emissions, and lessening the need for new utility infrastructure. CIP is funded by ratepayers and administered by electricity and natural gas utilities through programs and rebates. It is overseen by the Minnesota State Department of Commerce. 14.CMMPA – Central Minnesota Municipal Power Agency – A joint power agency established in 1987. Upstream CAPX2020 participant through which ERMU purchased transmission assets. CMMPA is ERMU’s agent filing their annual Midcontinent Independent System Operator (MISO) “Attachment O” report . 15.CMPAS – Central Municipal Power Agency/Services – Pronounced “compass.” Serves as a public power joint action agency providing power management and utility services for its electric utility members and affiliates. Provides energy management and consulting services to 12 public power members and 8 affiliates in MN and IA. 216 ELK RIVER MUNICIPAL UTILITIES COMMONLY USED ACRONYMS Page 3 of 15 An agent of the Central Minnesota Municipal Power Agency, CMPAS oper ates as a project-oriented, partial or full-requirements agency. 16. COLA – Cost of Living Adjustment – An increase in income that keeps up with the cost of living. Increases may be based on several factors including applicable competitive job markets, the Consumer Price Index (CPI), and financial position. 17. CON – Certificate of Need – A legal request that Minnesota’s utilities must file with the MnPUC for a proposed acquisition, expansion, or creation of a facility. Applicants must be able to show that the proposed change supports reliable and efficient services, that there is not a more prudent reasonable alternative, that it will not threaten the natural or social environment, and that it meets oth er state and federal regulations. 18. COOP – Cooperative Electric Utility – Member-owned, not-for-profit utilities governed by an elected board of directors. Co-ops are found in most states but are most prevalent in the Midwest and Southeast. 19. COU – Consumer Owned Utility – Another description for municipal and cooperative utilities, which are owned by those who use their services. 20. CPI – Consumer Price Index – A measure of the average change over time in the prices paid by consumers for common goods and services, such as food, clothing, shelter, and transportation fees. It is calculated by the U.S. Bureau of Labor Statistics 21. CRC – Cooperative Response Center – Afterhours call center located in Austin, MN, used by ERMU. D 22. DC – Direct Current – A flow of electric charge that does not change direction. Direct current was supplanted by alternating current (AC) for distribution purposes in the late 1880s because it was then uneconomical to transform it to the high voltages needed for long-distance transmission. Batteries, fuel cells, and solar cells all produce DC; current always flows in the same direction between the positive and negative terminals. 23. DG – Distributed Generation – A term for electricity generated from sources, often renewable energy sources, near the point of use instead of centralized generation sources from power plants. Solar panels installed on rooftops, fuel-cells, diesel generators, some geothermal plants, or micro-turbines are common examples. These are smaller than utility scale generation schemes and thus offer much more flexibility in how they are deployed. They can be used to power a single home or large enough to provide electricity for a whole community. 217 ELK RIVER MUNICIPAL UTILITIES COMMONLY USED ACRONYMS Page 4 of 15 24. DOE – Department of Energy – A cabinet-level department of the United States Government with responsibilities that include the nation's nuclear weapons program, nuclear reactor production for the United States Navy, energy conservation, energy-related research, radioactive waste disposal, and domestic energy production. 25. DSM – Demand Side Management –The planning, implementing, and monitoring of activities that educate and encourage consumers to modify their level and pattern of electric usage to meet the utility’s energy and demand goals. These activities reduce demand, creating better cost and distribution management. They also enhance customer experience through real-time notifications from the utility. E 26. EAC – Energy Adjustment Clause – A forward-looking rates system used by the Minnesota Municipal Power Agency (MMPA) to help match the timing of revenues and expenses. MMPA reviews projected costs at the start of each month and sets rates to members accordingly. This helps reduce the lag between costs and revenue. 27. EAP – Emergency Action Plan – Procedures to respond to citywide emergencies and or disasters. In Elk River, the Fire Chief serves as the Director of Emergency Management and is responsible for establishing the plan which is carried out by key decisions makers who would convene in the Emergency Operations Center. 28. EIA – Energy Information Administration –The statistical and analytical agency within the U.S. Department of Energy. The EIA collects, analyzes, and disseminates independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy and its interaction with the economy and the environment. 29. EMF – Electromagnetic Field – EMFs are a combination of an electric field and a magnetic field; a stationary charge produces only an electric field, while a moving charge also creates a magnetic field. 30. EOC – Emergency Operations Center – A multi-agency communications and coordination center. The facility provides a central point for directing operational and administrative support during large-scale disaster responses in Elk River. The center is located in the basement of Fire Station #2, next to city hall. 31. EPA – Environmental Protection Agency – An agency established in 1970 to consolidate federal research, monitoring, standard-setting, and enforcement activities that support environmental protections. 218 ELK RIVER MUNICIPAL UTILITIES COMMONLY USED ACRONYMS Page 5 of 15 32. EV – Electric Vehicle – Vehicles which exclusively use an electrically charged battery pack to power the motor, as opposed to hybrid or plug-in hybrid vehicles which incorporate internal combustions engines. F 33. FERC – Federal Energy Regulatory Commission – An independent Federal agency that regulates the interstate transmission of electricity, natural gas, and oil. FERC also reviews proposals to build liquefied natural gas (LNG) terminals and interstate natural gas pipelines, as well as licensing hydropower projects. G 34. G&T – Generation & Transmission Utility – Providers of wholesale power to distribution utilities through their own generation or by purchasing power on behalf of the distribution members. 35. GIS – Geographic Information System – A system for gathering, managing, and analyzing data. GIS analyzes spatial location and organizes layers of information into visualizations using maps and 3D scenes. 36. GPM – Gallons Per Minute – A unit of measurement used to quantify the amount of water that is able to move through a device in one minute. 37. GPS – Global Positioning System – A U.S.-owned utility that provides users with positioning, navigation, and timing services. This system consists of three segments: the space satellite segment, the control station segment, and the user/ receiver segment. The U.S. Air Force develops, maintains, and operates the space and control segments. 38. GRE – Great River Energy - A not-for-profit wholesale electric power cooperative which provides electricity to 28 member-owner distribution cooperatives. ERMU received wholesale power from GRE through Connexus Energy until October 1, 2018. H 39. Hz – Hertz – The derived unit of frequency in the International System of Units (SI), one hertz equals one cycle per second. It is named after Heinrich Rudolf Hertz, the first person to provide conclusive proof of the existence of electromagnetic waves. As related to the electric industry in the U.S., the electric grid operates at 60Hz, or 60 cycles of alternating current per second. 219 ELK RIVER MUNICIPAL UTILITIES COMMONLY USED ACRONYMS Page 6 of 15 I 40. IT – Information Technology – The technology involving the development, maintenance, and use of computer systems, software, and networks for the processing and distribution of data. 41. IOU – Investor Owned Utility – Large electric distributors that are governed by a board of directors elected by stockholders. They exist to make a profit for investors while serving the public. Capital is raised through stock sales, taxable bonds, and through operating revenues. IOUs are most prevalent in heavily populated areas on the East and West coasts. 42. IPD - Implicit Price Deflator - The ratio of the current-dollar value of a series, such as gross domestic product (GDP), to its corresponding chained-dollar value, multiplied by 100. The Bureau of Economic Analysis publishes implicit price deflators for GDP, related components, and Gross National Product in National Income and Product Accounts. The IPD is used for the calculation of the loss of revenue LOR payment in the 2015 Electric Service Territory Transfer Agreement with Connexus Energy. J 43. JTS – Job Training & Safety Program –Training for utility personnel in the safety- related work practices and technical skills necessary to install, operate, and maintain the electric power system. K 44. KPI – Key Performance Indicator – Indicators of progress toward an intended result. KPIs focus on strategic and operational improvements, create an analytical basis for decision making, and assist in focusing efforts. 45. kW – Kilowatt – A unit of power, equal to 1000 watts. 46. kWh – Kilowatt Hour – a unit of energy, equivalent to the energy transferred or expended in one hour by one kilowatt of power. L 47. LED – Light-Emitting Diode – A light source which uses semiconductors and electroluminescence to create light rather than requiring energy to heat a filament. LED light bulbs generally have lower energy consumption, longer lifetime, improved physical robustness, and smaller size than incandescent bulbs. 220 ELK RIVER MUNICIPAL UTILITIES COMMONLY USED ACRONYMS Page 7 of 15 48. LF – Load Factor –A percentage that shows customers how effectively they use electricity over an entire period in relation to their peak demand. LF is calculated by taking the actual kilowatt-hours used in a period and dividing it by the potential maximum kilowatt-hours established by their peak demand. The higher the percentage the more closely peak demand represents actual usage, thus the more effectively a customer is using electricity. 49. LM – Load Management – An opt-in program where customers allow a utility to restrict their usage of electricity during peak demand periods when the cost is high. In exchange for this, these customers typically receive a lower rate when they do use electricity. 50. LNG – Liquefied Natural Gas – Natural gas that has been cooled to a liquid state, about -260 degrees Fahrenheit, for shipping and storage. The volume of natural gas in its liquid state is about 600 times smaller than its volume in its gaseous state. This process makes it possible to transport natural gas to places pipelines do not reach and to use it as a transportation fuel. 51. LOR – Loss of Revenue – A component for compensating an electric provider for territory acquired by another electric provider. ERMU makes an annual LOR payment to Connexus for the electricity used by the customers we acquired from them. A payment is made for each of the areas acquired for ten years after the acquisition date. It is calculated based on the kwh used multiplied by a mill rate that is indexed every year. More generally, a LOR occurs when a company makes less from operations than expected due to external and internal factors. M 52. MIC – Member Information Conference – National Information Solutions Cooperative’s annual member conference. 53. Mill – Mill Rate – One tenth of one cent. This is the term used for the electric service territory loss of revenue (LOR) rate calculation which is calculated on energy sales. 54. MISO – Midcontinent Independent System Operator – An independent, not-for- profit organization that delivers safe, cost-effective electric power across 15 U.S. states and the Canadian province of Manitoba. MISO provides reliable operation of the bulk power transmission system and collaborates with all stakeholders to create cost-effective and innovative solutions for the ever-changing electric industry. MISO operates one of the world’s largest energy markets with more than $29 billion in annual gross market energy transactions. 55. MMPA – Minnesota Municipal Power Agency – An all-requirements wholesale power provider which supplies 12 Minnesota member communities with competitively priced, reliable and sustainable energy. The Agency is owned by its 221 ELK RIVER MUNICIPAL UTILITIES COMMONLY USED ACRONYMS Page 8 of 15 member cities and governed by a Board of Directors with representatives from each community. Elk River began taking power from MMPA on October 1, 2018. 56. MMTG – Midwest Municipal Transmission Group – A group formed by Iowa, Minnesota, and Illinois municipal utilities to advocate for the recognition of existing municipal transmission ownership, as well as seek new ownership opportunities. MMTG is governed by a volunteer board of directors from its me mbership. 57. MMUA – Minnesota Municipal Utilities Association – A nonprofit corporation representing the interests of the state’s 100+ municipal electric and natural gas utilities. MMUA was formed in 1931 and provides a wide variety of services to its members. 58. MNPUC – Minnesota Public Utilities Commission – The regulating body for electric, natural gas, and telephone services in the state. The Commission consists of five commissioners appointed by the governor to six-year, staggered terms. Its mission is to create and maintain a regulatory environment that ensures safe, adequate, and efficient utility services at fair, reasonable rates consistent with State telecommunications and energy policies. 59. MOU – Memorandum of Understanding – An agreement between two parties that is not legally binding, but which outlines the responsibilities of each of the parties to the agreement. An MOU is often the first step toward creating a legally binding contract. 60. MREA – Minnesota Rural Electric Association – A non-profit member service organization representing electric cooperatives in the state of Minnesota. MREA assists with safety compliance, education and training, as well as government affairs. It is divided into seven districts and governed by a fourteen-member board of directors. 61. MRO – Medical Review Officer – A licensed physician who is responsible for receiving and reviewing laboratory results generated by an employer's drug testing program. They also evaluate medical explanations for certain drug test results. The officer acts as an independent and impartial advocate for the accuracy and integrity of the drug testing process. 62. MRWA – Minnesota Rural Water Association – A non-profit association governed by a board of directors with full-time staff trained to offer professional on-site technical assistance and training to water and wastewater system personnel in managerial, financial, and operation and maintenance of systems, as well as source water protection. 63. Muni – Municipal Utility – Publicly-owned, not-for-profit utilities governed by the city council or an appointed commission. Capital is typically raised through operating 222 ELK RIVER MUNICIPAL UTILITIES COMMONLY USED ACRONYMS Page 9 of 15 revenues or sale of tax-exempt bonds. Various safety and service issues are regulated by the state Public Utilities Commission or federal government. 64. MW – Megawatt – A unit for measuring power that is equivalent to one million watts or 1,000 kilowatts. 65. MWh – Megawatt Hour – A unit of measurement equal to one million watts, or 1,000 kilowatts, of electricity used continuously for one hour. N 66. NERC – North American Electric Reliability Corporation – A not-for-profit international regulatory authority whose mission is to assure the effective and efficient reduction of risks to the reliability and security of the grid. NERC develops and enforces Reliability Standards; annually assesses seasonal and long‐term reliability; monitors the bulk power system through system awareness; and educates, trains, and certifies industry personnel. NERC is the electric reliability organization for North America, subject to oversight by the Federal Energy Regulatory Commission. 67. NISC – National Information Solutions Cooperative – An information technology (IT) company that develops and supports software and hardware solutions for their member-owners who are primarily utility cooperatives and telecommunications companies across the nation. Provides advanced, integrated IT solutions for consumer and subscriber billing, accounting, engineering & operations, as well as many other leading-edge IT solutions. ERMU became a member in 2015. 68. NMPA – Northern Municipal Power Agency – A not-for-profit joint action agency established in 1976, NMPA is the energy supplier for 12 municipal utilities in eastern North Dakota and northwestern Minnesota. 69. NRECA – National Rural Electric Cooperative Association – A national service organization that represents the interests of electric cooperatives, public power districts, and public utility districts in the United States. 70. NSP – Northern State Power Company - A regulated investor-owned electric and natural gas utility holding company based in Minneapolis, Minnesota that is now a subsidiary of Xcel Energy. O 71. OMS – Outage Management System – A computer-aided systems used by electric distributors to identify outages and provide real-time alerts on the status of repairs. OMS records the history of outages and continuously updates data. OMS usually 223 ELK RIVER MUNICIPAL UTILITIES COMMONLY USED ACRONYMS Page 10 of 15 works in tandem with GIS or customer information systems and call handling systems such as interactive voice response. 72. OSHA – Occupational Safety and Health Administration – Created through the Occupational Safety and Health Act of 1970, OSHA works to ensure safe and healthful working conditions by setting and enforcing standards, and by providing training, outreach, education, and assistance. 73. OSI – Open Systems International, Inc. – An automation software company headquartered in Medina, MN, which provides the Supervisory Control and Data Acquisition (SCADA) software used by ERMU and Great River Energy (GRE). 74. OT – Operational Technology – Hardware and software that detects or causes a change, through the direct monitoring and/or control of industrial equipment, assets, processes, and events. Common applications for utilities are transformers, substations, sensors, valves, pumps, etc. P 75. PCA – Power Cost Adjustment – A charge or credit to a customer’s bill that reflects the increasing or decreasing price of purchased power from a wholesale provider. 76. PF – Power Factor – The ratio of the power drawn from a source to the power that is consumed. PF is usually expressed in a percentage, the higher the percentage the more efficient the system. Lost power commonly occurs in the creation heat or vibrations. 77. PILOT – Payment In Lieu Of Taxes – A payment made to compensate a government for some or all of the property tax revenue lost due to tax exempt ownership or use of real property. 78. PMA – Power Marketing Administration – A network of four federal administrations that operate electric systems and sell the electrical output of federally owned and operated hydroelectric dams to 33 states. Those administrations are the Bonneville Power Administration, the Western Area Power Administration, the Southeastern Power Administration, and the Southwestern Power Administration. 79. PPA – Purchased Power Agreement – The contract between an electricity generator and a buyer who intends to use or distribute the electricity. 80. PPE – Personal Protective Equipment – Equipment worn to minimize exposure to hazards that cause serious workplace injuries and illnesses. These injuries and illnesses may result from contact with chemical, radiological, physical, electrical, mechanical, or other workplace hazards. PPE may include gloves, safety glasses and shoes, earplugs or muffs, hard hats, respirators, coveralls, vests, and full body suits. 224 ELK RIVER MUNICIPAL UTILITIES COMMONLY USED ACRONYMS Page 11 of 15 81. PSE – Power Systems Engineering, Inc. – A full-service consulting firm for electric utilities, independent power producers. They also serve commercial and industrial electric users which includes distribution cooperatives, generation and transmission cooperatives, investor-owned utilities, municipal utilities, public utility districts, and industry associations. 82. PUC – Public Utilities Commission – A governmental agency in a particular jurisdiction that regulates the commercial activities of electric, natural gas, telecommunications, water, railroad, rail transit, and/or passenger transportation companies. 83. PUD – Public Utilities District – Community-owned, locally regulated utilities that are formed by a vote of the people. PUDs are run by an elected, board of commissioners. 84. PURPA – Public Utility Regulatory Policies Act – A federal act passed in 1978 to encourage conservation, efficiency, equitable rates, and expanding domestic energy sources. PURPA established a new class of generating facilities known as “qualifying facilities” which typically either utilize primarily renewable energy or make use of the thermal energy that is a biproduct of normal generation. 85. PV – Photovoltaic – PV devices generate electricity directly from sunlight via an electronic process that occurs naturally in certain types of material, called semiconductors. Electrons in these materials are freed by solar energy and can be induced to travel through an electrical circuit, powering electrical devices or sending electricity to the grid. 86. PVB – Pressure Vacuum Breaker – A type of backflow prevention device used to protect the water supply from contamination. The PVB is the most common, and economical type of whole-system backflow preventor. This type of assembly is typically used in residential irrigation applications. Q 87. QF – Qualifying Facility – A designation for power generating facilities established by the Public Utility Regulatory Policies Act (PURPA). Qualifying Facilities typically fall into two categories. A small power production facility is 80 MW or less with a primary energy source that is renewable (hydro, wind or solar), biomass, waste, or geothermal. A cogenerational facility produces electricity and another form of useful thermal energy (such as heat or steam) in a way that is more efficient than the separate production of both forms of energy. ERMU’s landfill-gas-to-electric plant is also a QF. 225 ELK RIVER MUNICIPAL UTILITIES COMMONLY USED ACRONYMS Page 12 of 15 R 88. REC – Renewable Energy Credit or Certificate – The instrument that electricity consumers use to substantiate renewable electricity use claims. Because energy from different sources enters the same grid, a REC is used to represent the property rights to the environmental, social, and other non-power attributes of renewable electricity generation. 89. RES – Renewable Energy Standard – A requirement established in individual states for utility companies to source a certain amount of the energy they generate or sell from renewable sources. 90. RFI – Request For Information – A solicitation document used to obtain general information about products, services, or suppliers. It is an information request, not binding on either the supplier or the purchaser, and is often used prior to specific requisitions for items. 91. RFP – Request For Proposal – A document that announces and provides details about a project, as well as solicits bids from contractors who may be selected to complete the project. 92. RICE – Reciprocating Internal Combustion Engine – An engine that uses reciprocating pistons to convert heat energy into mechanical work 93. ROW – Right Of Way – A legal right of passage that allows someone the right to travel across property owned by someone else. Land within the right-of-way is reserved for public use. This may be used for public streets, sidewalks, alleys, utilities, etc. 94. RP3 – Reliable Public Power Provider – An American Public Power Association electric utility designation based on industry-recognized leading practices in four important disciplines: Reliability, Safety, Workforce Development, and System Improvement. ERMU has held the RP3 designation since 2012. 95. RPZ – Reduced Pressure Zone – Is a type of backflow prevention device used to protect the water supply from contamination. RPZs are the most secure and reliable of all backflow prevention. This device is typically used in commercial applications. 96. RUS – Rural Utilities Service –Programs from the U.S. Department of Agriculture that help utility providers in rural areas maintain and expand infrastructure, facilities, and services. 226 ELK RIVER MUNICIPAL UTILITIES COMMONLY USED ACRONYMS Page 13 of 15 S 97. SAIDI – System Average Interruption Duration Index – A reliability indicator used by electric utilities which tracks the average outage duration for each customer during a specific period, typically a year. 98. SAIFI – System Average Interruption Frequency Index – A reliability indicator used by electric utilities which tracks the average number of interruptions that a customer would experience during a specific period, typically a year. 99. SCADA – Supervisory Control and Data Acquisition – A control system architecture that uses computer networked data communications and graphical user interfaces for high-level process supervisory management. ERMU utilizes SCADA systems to monitor well production and water tower levels on the water distribution system as well as feeders and substation devices on the electric system. 100. SEL – Schweitzer Engineering Laboratories – A private company that provides design, manufacture, supply, and support of products and services for power systems. These products assist in protection, monitoring, control, automation, communications and metering. 101. SMMPA – Southern Minnesota Municipal Power Agency – A not-for-profit joint action agency created in 1977 operating an energy mix of renewable, coal, and natural gas-fired generation to provide electricity to 18 member utilities and 119,000 customers. 102. SPCC – Spill Prevention, Control and Countermeasure Plan – Regulations created by the U.S. Environmental Protection Agency to help facilities prevent a discharge of oil into navigable waters or adjoining shorelines. The regulations require certain facilities to develop and implement plans, procedures, methods, and equipment requirements. 103. SWOT – Strengths, Weaknesses, Opportunities, Threats – A strategic planning technique used by groups or organizations to assess their strengths, weaknesses, opportunities, and threats. This analysis is intended to assist in the preliminary stages of the planning process to identify objectives as well as internal and external factors that are favorable and unfavorable to achieving the objective. T 104. TOU – Time Of Use Rates – Rate structures put in place to incentivize customers to consume energy during times when the cost of generating electricity is cheap, and to disincentivize energy consumption when the cost of generating electricity is high. 227 ELK RIVER MUNICIPAL UTILITIES COMMONLY USED ACRONYMS Page 14 of 15 U 105. USG – Utility Service Group – An engineering subdivision of Great River Energy. Until they were closed by GRE, ERMU used USG for engineering services including substation design, fuse coordination studies, fault current studies, and equipment specifications. 106. UPA – United Power Association – A power provider for Elk River Municipal Utilities (ERMU) until 1999 when it merged with the Cooperative Power Association to become Great River Energy, which provided power to ERMU until 2018. V 107. V – Volt – The Standard International unit of electric potential or electromotive force. W 108. W – Watt – A unit of power in the International System of Units used to quantify the rate of energy transfer. 109. WAPA – Western Area Power Administration – One of four power marketing administrations within the U.S. Department of Energy whose role is to market and transmit wholesale electricity from multi-use water projects. WAPA brings electricity from hydropower plants to its service area, encompassing a 15-state region, including western Minnesota. 110. WHE – Wright-Hennepin Cooperative Electric Association – A member-owned, not- for-profit electric utility that provides power to rural Wright County and western Hennepin County. The cooperative began in 1937 and currently serves over 50,000 electric accounts. It is headquartered in Rockford, MN. 111. WM – Waste Management, Inc. – A trash removal and recycling pickup service. WM also operates the Elk River Landfill which is the location of the Landfill Gas to Energy plant owned by ERMU. X 112. Xcel – Excel Energy, Inc. – A regulated, investor-owned electric and natural gas delivery company with four utility subsidiaries. They serve 3.6 million electric and 2 million natural gas customers across parts of Minnesota, North Dakota, and South Dakota (Northern States Power Company-Minnesota); Wisconsin and Michigan (Northern States Power Company- Wisconsin), Colorado (Public Service Company of Colorado); and Texas and New Mexico (Southwestern Public Service Company). 228 ELK RIVER MUNICIPAL UTILITIES COMMONLY USED ACRONYMS Page 15 of 15 Y 113. YTD – Year To Date – In accounting, the cumulative balance of revenue, expense, gain, loss, etc. for the period between January 1 (typically) and the current date. Z 114. Z – Impedance – The measure of the opposition that a circuit presents to a current when a voltage is applied. 229