4.3 ERMUSR 03-12-2024��i
Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Tony Mauren — Governance & Communications Manager
MEETING DATE:
AGENDA ITEM NUMBER:
March 12, 2024
4.3
SUBJECT:
Annual Commissioner Orientation
ACTION REQUESTED:
None
BACKGROUND:
Commission Policy G.2d — Commission Member Role, Responsibilities, and Orientation
describes the role and responsibilities of commissioners operating as a governing body in
accordance with applicable law. The Commission also establishes its expectations for the
orientation of new commission members.
As stated in the policy, "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, an annual orientation program for new and existing commission members was
implemented in 2018.
This year's orientation will offer a presentation from Frontier Energy on updates to ERMU's
Conservation Improve Program as well as a review of the Commission Policy manual and
reference guide updates from the previous 12 months.
COMMISSIONER POLICY AND REFERENCE GUIDE UPDATES:
1. Updated Commission Policies
• G.2g1— Wage & Benefits Committee Charter
• G.2g2 — Financial Reserves and Investment Committee Charter
• G.2g3 — Information Security Committee Charter
• G.2g4— Dispute Resolution Committee Charter
• G.2i — Electronic Signature
• G.4f1— Employee Handbook
• G.4g1— Performance Metrics and Incentive Compensation Policy
Page 1 of 2
2. Updates to Commission Reference Guide
• 2024 Governance Agenda
• 2024 ERMU Organizational Chart
• 2024 ERMU Staff Roster - On file with the Governance Manager
• 2024 Utilities Commission Member Listing
• 2024 Utilities Commission Meeting Schedule
• 2024 Upcoming Events
• 2024 Travel Expense Guidelines for Commissioners
ATTACHMENTS:
• Summary Commission Policy and Reference Guide Updates for 2024
• Updated Policies and Reference Guide items listed above
Page 2 of 2
63
i=,-
Elk River
Municipal Utilities
SUMMARY COMMISSION POLICY AND REFERENCE GUIDE UPDATES FOR 2024
POLICY
G.2g1/2/3/4 —Wage & Benefit, Financial Reserves & Investment, Information Security, and Dispute
Resolution Committee Charters —January 9/February 13, 2024 — Language adjusted to clarify that all
meetings will be held in accordance with Open Meeting Law.
G.2i — Electronic Signature — August 8, 2023 — New policy to establish the use and acceptability of
electronic signatures for ERMU. With this policy's approval, ERMU offers electronic signatures of service
agreements on its website.
G.4f1— Employee Handbook —June 13, 2023 —The changes are:
• Revise Date in footer & on cover page.
• Revise Table of Contents and page numbers.
• Revise Section 13 - Commitment to a Drug and Alcohol -Free Workplace, related to adult -use
cannabis legalization.
• Revise Section 30 - On -Call, to update residency rule for on -call workers to include commute
time.
• Revise Section 33 - Lead Pay Differential, to update lineworker position title and add water
operator as a qualifying position.
• Revise Section 34 - Longevity Pay, to update when the bonus is paid out.
• Revise Section 43 - Paid Holidays, to add Juneteenth Day.
• Revise Section 44 - Employee Clothing, to update lineworker position title.
• Revise Section 45 - Health Care Savings Plan, to add the percentage of paid sick leave conversion
to HCSP at time of retirement.
• Revise Section 47 - Health Insurance Coverage, to reflect cost increase.
• Add Section 51- Short Term Disability, to reflect the new employee benefit.
Updates that will appear in the 2024 Employee Handbook to be presented at a future meeting:
• January 9, 2024 — The clothing allowance for commissioners and non -field staff was increased
from $75 to $120.
• November 14 — 2023 — Wage & Benefit Committee
o Updating the Bereavement Leave Policy to include more inclusive language for relations
that qualify for three days of leave and a one -day tier for aunts, uncles, and cousins.
o Adjustments to the Nightwork and Rest Time Policy to provide a two-hour minimum rest
time for nightwork occurring 10:00 p.m. to 6:00 a.m. and eight hours of rest time for
employees working four or more hours between the hours of 12:00 a.m. to 6:00
a.m.
X
o 2024 Vacation Accrual Schedule
0-3 yrs.
13 days
4-9 yrs.
16 days
10-11 yrs.
17 days
12-13 yrs.
19 days
14-15 yrs.
20 days
16-18 yrs.
22 days
19 yrs.
25 days
20-21 yrs.
26 days
22-23 yrs.
27 days
24+ yrs.
28 days
G.4g1— Performance Metrics and Incentive Compensation — December 12, 2023 — The potential
distribution for the 2024 year of measure was increased from 2.5% to 3% with the actual distribution to
occur in 2025.
REFERENCE GUIDE
2024 Governance Agenda —The Commission recommended moving the Annual Commission
Performance Evaluation from July to June to space out the agenda.
2024 Organizational Chart —The conservation & key accounts manager position is now a
conservation & key accounts specialist (vacant), reporting to the administrations director.
2024 ERMU Staff Roster — On file with the governance & communications manager.
2024 Utilities Commission Member Listing— No change for 2024. Provides contact information and
terms for commission members.
2024 Utilities Commission Meeting Schedule —The June 2024 meeting will be held on the first
Tuesday of the month at the regular time and place to ensure a quorum, with commissioners
expected to attend a conference. The August meeting will occur at the regular date and time but at
the field services building as the city will need the regular meeting room during the Primary Election.
All other meetings will occur at 3:30 p.m. on the second Tuesday of each month in the Uppertown
Conference Room.
2024 Upcoming Events — The Sherburne County Parade is scheduled for Saturday, July 20; The
Minnesota Municipal Power Agency Annual Meeting is scheduled for Tuesday, July 23 in Le Sueur,
MN; The Minnesota Municipal Utilities Association's Summer Conference is scheduled for August 19-
21 in Fargo/Moorhead.
2024 Travel Expense Guidelines —The only change is an increase in the business mileage
reimbursement rate from 65.5 cents to 67 cents.
65
��i
Elk River
Municipal Utilities
COMMISSION POLICY
Section:
Governance
Category:
Governance Policies
Policy Reference:
Policy Title:
G.2gl
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, the
Administrations Director, and the Operations Director. 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. Committee meetings may be open or
closed in accordance with Open Meeting Law.
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
Page 1 of 2
ERMU Commission Policy— G.2gl Wage & Benefits Committee Charter
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
Revised
February 14, 2023
Revised
January 9, 2024
Page 2 of 2
67
��i
Elk River
Municipal Utilities
COMMISSION POLICY
Section:
Governance
Category:
Governance Policies
Policy Reference:
Policy Title:
Financial Reserves & Investment
G.2g2
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 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. Committee meetings may be open or
closed in accordance with Open Meeting Law.
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.
SPECIFIC DUTIES:
Page 1 of 2
ERMU Commission Policy — G.2g2 Financial Reserves & Investment Committee Charter
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 Policies, 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 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 Manager, with the funds actually being transferred via a check produced by the AT
Specialist, and recorded in the check register detail presented at the regular Commission
meetings. Investments that mature shall be reinvested by the Finance 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 Management Investment Policy. In the event that the Finance
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 Policies and reserve
balances. The Committee may present options and make recommendations 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
Revised July 14, 2020
Revised January 9, 2024
Page 2 of 2
��i
Elk River
Municipal Utilities
COMMISSION POLICY
Section:
Governance
Category:
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 and the General Manager. The General
Manager will appoint three additional members, at least one of whom will be a manager and at
least one will be an information technology employee. From the City this committee shall
include a Councilmember and the City Administrator. The City Administrator will appoint three
additional members, at least one of whom will be a manager and at least one will be 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 its member annually. 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
Page 1 of 3
70
ERMU Commission Policy — G.2g3 Information Security Committee Charter
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,
the Committee action shall not be inconsistent with applicable laws and policies which regulate
the City of Elk River. Committee meetings may be open or closed in accordance with Open
Meeting Law.
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:
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.
Page 2 of 3
71
ERMU Commission Policy — G.2g3 Information Security Committee Charter
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
Revised
February 14, 2023
Revised
January 9, 2024
Page 3 of 3
72
Elk River
Municipal Utilities
COMMISSION POLICY
Section:
Governance
Category:
Governance Policies
Policy Reference:
Policy Title:
G.2g4
Dispute Resolution Committee Charter
PURPOSE:
The Dispute Resolution Committee exists to provide customers an alternative dispute resolution
option for circumstances which: require action beyond the authority assigned through the
Delegation to Management Policies, require policy creation, revision, or exception; have
exhausted the established utilities procedures and/or protocol; and involves customer protected
data for which the customer prefers addressing the issue through a meeting closed to the public.
For qualifying customer disputes, the Committee will provide: an informal hearing in
accordance with Open Meeting Law allowing the customers to communicate the concern; recess
and reconvene as needed to conduct appropriate research and/or deliberate; make a
determination within parameters established through the Commission Policies and within the
authorities delegated through this policy; and report and/or make recommendations to the
Commission as required.
MEMBERSHIP:
The Committee shall be comprised of five members, three appointed annually and two which vary
with each dispute. The three members appointed annually shall include two Commissioners and
the General Manager. At no time shall there be a quorum of the Commission on the Committee.
The Committee shall also include the director and the manager most directly involved in the
dispute.
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
Page 1 of 3
73
ERMU Commission Policy — G.2g4 Dispute Resolution Committee Charter
special rules of order that the Commission may adopt.
AUTHORITY:
Except as established in this Committee Charter, the authority of the Committee is limited to the
purpose of dispute resolution within the authorities delegated to management through the
Commission Policies, research related to customer disputes or complaints, and recommendations to
the Commission. The Committee, at the discretion and through formal action of the Commission,
may be empowered beyond the role as outlined in this policy such that it is consistent with the
Organizational Core Purpose policies and the Commission Committees policy.
SPECIFIC DUTIES:
After a formal request is submitted for a qualifying customer dispute, the
Committee will schedule a hearing, either in person or virtual, within a reasonable
amount of time.
2. Through the hearing, the Committee will allow the customer to communicate
relevant information and request dispute resolution which may require policy
creation, revision, or exemption.
3. The Committee is required to verify all information and data; and the Committee will
review the Customer's account history and other relevant information.
4. And as needed, the Committee shall research industry best practices related to the dispute.
The Committee is authorized to engage legal counsel for legal review and
recommendations.
6. The Committee will make a determination whether resolution can be provided within the
authorities assigned through this policy; and if so, the Committee will provide written
summary of the dispute and the authorized resolution for implementation by management.
7. When no action is taken by the Committee toward resolution, the Committee will determine
whether the request warrants further consideration by the Commission, in which case the
Committee will present a summary of the dispute to the Commission and a make
recommendation. In the event that no action is taken by the Committee, and the Committee
has determined that the dispute does not warrant further consideration or advancement to
the Commission, the Committee shall summarize their finding in a report to be provide to
the customer and placed on file.
8. The Committee shall record minutes of all Committee meetings. Committee meeting
minutes shall be subject to applicable data retention law and policies.
SCHEDULE:
The Committee shall meet on an as -needed basis.
Page 2 of 3
74
ERMU Commission Policy — G.2g4 Dispute Resolution Committee Charter
TERMINATION:
The Committee shall exist until at such time formal action of the Commission is taken to
dissolve the Committee.
POLICY HISTORY:
Adopted January 12, 2021
Revised February 14, 2023
Revised February 13, 2024
Page 3 of 3
75
Eli River
Municipal tilities
COMMISSION POLICY
Section:
Governance
Category:
Governance Policies
Policy Reference:
Policy Title:
G.2i
Electronic Signature
PURPOSE:
Elk River Municipal Utilities ("ERMU") continuously works to increase efficiencies and further
sustainability measures. ERMU's efforts include the reduction of printing and paper use, and
the increase in paperless forms of communication and approval processes. The purpose of this
policy is to establish procedures to allow the use of electronic or digital signatures in place of
handwritten (or "wet") signatures pursuant to Minnesota's Uniform Electronic Transactions Act
(Minn. Stat., Ch. 325L) ("the Act").
The State of Minnesota authorizes and encourages the use of electronic signatures by
governmental agencies, including municipalities commissions, and instrumentalities of
municipalities, as an efficient and cost-effective method of operations. Specifically, the State
requires government agencies to determine whether and to what extent they will use and accept
electronic signatures (Minn. Stat. § 325L.18). As more governmental services and forms are
offered online, agencies and municipalities need the ability and authority to review, comment
upon, approve, sign, and otherwise process these forms and information in a digital and paperless
medium.
The Minnesota Legislature codified this encouragement with the passage of the Act. The Act
provides the basis for electronic or digital signatures to be given the same legal recognition,
function, and weight as handwritten signatures in all circumstances outlined in the Act. The Act
applies to any electronic record or electronic signature created, generated, communicated,
received, or stored after August 1, 2000.
Under the Act, "electronic signature" means an electronic sound, symbol, or process attached to
or logically associated with a record and executed or adopted by a person with the intent to sign
the record. A record or signature may not be denied enforceability solely because it is in an
electronic form (Minn. Stat. § 325L.07 (a)). Further, if a law requires a record to be in writing,
an electronic record satisfies the law (Minn. Stat. § 325L.07(c)). If a law requires a signature, an
electronic signature satisfies the law (Minn. Stat. § 325L.07(d)).
Pagel of 3
76
ERMU Commission Policy — G.2i Electronic Signature
To recognize these efficiencies in ERMU operations, the Elk River Public Utilities Commission
("Commission") authorizes the use of electronic and/or digital signatures as a valid signature to
issue checks and other orders of public funds; and execute documents and agreements.
POLICY:
To the fullest extent permitted by law, ERMU may utilize electronic digital signatures as legally
binding and equivalent to handwritten signatures whenever feasible, prudent, and efficient.
This policy hereby adopts the Definitions of the Act (Minn. Stat. § 325L.02). This policy does
not apply to certain documents and transactions governed by the Uniform Commercial Code.
A legible and acceptable electronic signature should have the following components:
A. The name of the signer and is applied in a manner to execute or validate the document;
B. The typed or printed name of the signer below or adjacent to the signature when the
signature uses a digitized or scanned version of the signer's hand scribed signature or the
name is in a cursive font;
C. The signer's corporate, managerial, or partnership title as part of or adjacent to the digital
signature when the signer is signing on behalf of an organization or legal entity;
D. When required or capable, evidence of authentication of the signer's identity such as the
text "digitally signed by" along with the software provider's seal/watermark, date and
time of execution; or, have an authentication code or key identifying the software
provider; and,
E. A font, size and color density that is clearly legible and reproducible when reviewed,
copied and scanned into a black on white format.
PROCEDURES:
All legally binding electronic documents and agreements shall be executed in accordance with
the Uniform Electronic Transactions Act (UETA) and the Minnesota Act.
A. ERMU staff and appointed officials are authorized to accept and use electronic signatures
in all situations where requirement of a signature or approval is stated or implied. This
policy does not supersede situations where laws specifically require a written signature,
nor the specific signature policies of other government agencies.
B. ERMU staff and appointed officials are authorized to use electronic signatures for
documents, such as ERMU service agreements, purchase orders, expense reports, checks,
and other customary and routine documents that are electronically generated. Other
documents may be deemed appropriate by the General Manager or Commission
Attorney.
Page 2 of 3
77
ERMU Commission Policy — G.2i Electronic Signature
C. ERMU staff and appointed officials may utilize third party certification methods to
authenticate electronic or digital signatures with vendors, contractors, or other
government departments and agencies whenever prudent or at the direction of the
General Manager or Commission Attorney.
D. ERMU staff are authorized to use the signature field in Adobe or other similar electronic
signature tool as a means of signing the document electronically.
E. Electronic signatures must apply to individuals only, and not for roles, positions, or titles.
F. ERMU reserves the right to refuse to use or accept an electronic or digital signature that
does not comply with the Act or other applicable Minnesota Statutes.
G. ERMU will retain an electronic copy of all electronically signed documents and
agreements in accordance with the State Record Retention Policy.
RESPONSIBILITY AND AUTHORITY:
Administrative implementation of policy as permitted by the Act, the Minnesota Electronic
Authentication Act (Minn. Stat., Ch. 325K), and Minnesota Statutes §§ 47.41 and 47.42.
POLICY HISTORY:
Adopted August 8, 2023
Page 3 of 3
m
El lk Riv
Municipal Utilities
EMPLOYEE HANDBOOK
13069 Orono Parkway
ELK RIVER, MN 55330
June 2023
Office: 763-441-2020
June 2023
61847929v4
79
Table of Contents
RECEIPT AND ACKNOWLEDGMENT..................................................................... v
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 ofSexual and Other Forms ofHarassment...................................
6
ScopeofPolicy......................................................................................................
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
It.
WEAPONS PROHIBITED...............................................................................
it
12.
EMPLOYEE SAFETY......................................................................................
it
13.
COMMITMENT TO A DRUG AND ALCOHOL -FREE
WORKPLACE...................................................................................................
12
14.
EXPOSURE TO HAZARDOUS SUBSTANCES ...........................................
14
15.
SOLICITATION AND DISTRIBUTION........................................................
14
NonEmployees..................................................................................................
15
Employees...........................................................................................................
15
RelatedPolicies..................................................................................................
15
Violation of This Policy By an Employee.........................................................
15
16.
ELECTRONIC COMMUNICATIONS: INTERNET, E-MAIL, AND
SOCIALMEDIA...............................................................................................
16
General Guidelines Applicable to Electronic Communications,
Including Communications Over Social Media ..............................................
16
BandwidthConservation...................................................................................
18
17.
SUPPLEMENTAL EMPLOYMENT..............................................................
18
Fire Department Participation.........................................................................
18
18.
REPORT OF PERSONNEL CHANGES........................................................
19
19.
ATTENDANCE..................................................................................................19
20.
DISCIPLINE, DISMISSAL & LAY OFF .......................................................
19
Discipline.............................................................................................................
19
Probationand Dismissal...................................................................................
20
i
June 2023
61847929v4
:1
Layoff/Reduction in Force................................................................................ 20
21. JOB POSTING................................................................................................... 20
22. PERFORMANCE REVIEWS.......................................................................... 21
Performance Metrics Incentives....................................................................... 21
WAGESAND HOURS.................................................................................................. 21
23.
WORK HOURS, OVERTIME, AND COMPENSATORY TIME ...............
21
GeneralPolicy....................................................................................................
21
CompensatoryTime...........................................................................................
22
24.
EMPLOYEE CLASSIFICATIONS.................................................................
23
Regular Full -Time Employee............................................................................
24
RegularPart -Time Employee...........................................................................
24
RegularField Worker........................................................................................
24
ExemptEmployee..............................................................................................
24
NonExempt Employee......................................................................................
24
UtilitiesManager................................................................................................
24
TemporaryWorker...........................................................................................
25
25.
TIME REPORTING POLICY.........................................................................
25
GeneralPolicy....................................................................................................
25
RecordingTime..................................................................................................
25
Frequency...........................................................................................................
25
Time Deductions for Breaks.............................................................................
26
Ensuring Accuracy of Timekeeping Reports ..................................................
26
Special Note About Work Performed Outside of Scheduled Times
andPlaces...........................................................................................................
26
26.
REMOTE WORK POLICY.............................................................................
27
27.
FAIR PAY POLICY..........................................................................................
31
AllEmployees.....................................................................................................
31
Protection of Employee Rights.........................................................................
31
Record Your Time And Review Your Pay Stub .............................................
31
How to Raise a Question or Concern about your Pay or a Payroll
Deduction............................................................................................................
31
Regular Attendance is an Essential Job Function and Your
Attendance Record is a Performance Issue .....................................................
32
Non -Exempt Employees....................................................................................
32
On Call Time For Non -Exempt Employees.....................................................
33
ExemptEmployees.............................................................................................
33
Salary Basis of Compensation..........................................................................
33
Attendance and Recording Time for Exempt Employees ..............................
33
On Call Time For Exempt Employees.............................................................
33
Deductions from an Exempt Employee's Salary .............................................
34
ImportantDefinitions........................................................................................
34
Permissible Deductions from Salary................................................................
34
Impermissible Deductions from Salary...........................................................
35
Permissible Deductions from An Exempt Employee's Leave Bank ..............
35
ii
June 2023
61847929v4
m
Questions or Concerns about This Fair Pay Policy ........................................ 35
28. BREAKS FOR NURSING MOTHERS TO PUMP BREAST MILK .......... 35
29. CALL OUT TIME: REGULAR FIELD WORKERS .................................... 36
30. ON-CALL........................................................................................................... 36
RegularField Workers...................................................................................... 36
Required On -Call Rotation for Regular Field Workers ................................. 36
ResidencyRule................................................................................................. 36
ResponseTime................................................................................................. 36
TakeHome Vehicles........................................................................................ 37
Compensation for On -Call Time..................................................................... 37
Compensation for Actual Response Time ....................................................... 38
Callout time..................................................................................................... 38
OtherOn -Call Arrangements........................................................................... 38
Superintendents............................................................................................... 38
TakeHome Vehicles........................................................................................ 39
31.
ELECTRIC RE -CONNECT TIME.................................................................
39
32.
STORM PAY......................................................................................................
39
33.
LEAD PAY DIFFERENTIAL..........................................................................
39
34.
LONGEVITY PAY............................................................................................
40
35.
PAYCHECK DEDUCTIONS...........................................................................
41
36.
PAYCHECKS....................................................................................................
41
37.
NIGHTWORK REST TIME............................................................................
42
38.
TRAVEL AND TRAINING TIME..................................................................
42
BENEFITS...................................................................................................................... 44
39.
GENERAL BENEFITS.....................................................................................
44
40.
VACATION........................................................................................................44
41.
PURCHASED VACATION TIME (PVT) .......................................................
45
42.
PAID SICK LEAVE..........................................................................................
46
43.
PAID HOLIDAYS.............................................................................................
47
44.
EMPLOYEE CLOTHING................................................................................
48
45.
HEALTH CARE SAVINGS PLAN.................................................................
49
46.
457 DEFERRED COMPENSATION..............................................................
50
Leave Credit In Lieu Of Compensation..........................................................
50
47.
HEALTH INSURANCE COVERAGE...........................................................
50
48.
DENTAL INSURANCE....................................................................................
51
49.
LONG-TERM DISABILITY............................................................................
51
50.
LIFE INSURANCE...........................................................................................
51
51.
SHORT TERM DISABILITY INSURANCE .................................................
51
52.
VISION INSURANCE.......................................................................................
52
53.
HOME COMPUTER LOAN POLICY...........................................................
52
54.
EDUCATIONAL ASSISTANCE.....................................................................
52
iii
June 2023
61847929v4
W
LEAVESOF ABSENCE............................................................................................... 54
55.
PARENTING LEAVE.......................................................................................
54
56.
MINNESOTA SICK FAMILY MEMBER OR SAFETY LEAVE ...............
55
57.
SCHOOL ACTIVITIES LEAVE POLICY .....................................................
56
58.
BONE MARROW AND ORGAN DONATION LEAVE ..............................
56
59.
NATIONAL GUARD AND RESERVE LEAVE ............................................
56
60.
MILITARY LEAVE FOR UNIFORMED SERVICE ....................................
57
61.
JURY/WITNESS DUTY LEAVE....................................................................
57
62.
PERSONAL LEAVE DAY...............................................................................
58
63.
BEREAVEMENT LEAVE...............................................................................
58
64.
GENERAL LEAVE...........................................................................................
58
65.
VOTING LEAVE; SERVICE AS ELECTION JUDGE ................................
58
66.
PAID LEAVE DONATION..............................................................................
59
RECEIPT AND ACKNOWLEDGMENT................................................................... 62
46703186v1
iv
June 2023
61847929v4
m
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.
Further, I understand that nothing in this Handbook creates a contract with specific terms
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
46703186v1
v
June 2023
Print or Type Name
Employee Signature
61847929v4
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. Further, to be clear, nothing in this
Handbook creates a contract with specific terms 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
June 2023
61847929v4
m
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.
l . 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
2
June 2023
61847929v4
0
pay, reinstatement, costs, attorneys' fees and other make whole relief In addition, the
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.
June 2023
61847929v4
m
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.)
l . 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.
4
June 2023
61847929v4
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, childbirth, or related health conditions.
An employee who believes that he or she requires an accommodation due to a disability,
pregnancy or childbirth 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.
5
June 2023
61847929v4
0
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 ofSexual and Other Forms ofHarassment
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:
0 a condition of employment; or
0 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:
0 a condition of employment; or
0 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:
0 use of offensive or demeaning terms that have sexual connotations;
6
June 2023
61847929v4
•A
telling suggestive jokes or stories and conversations about sexual
exploits, sexual preferences, and desires;
e 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
0 unwelcome and objectionable physical contact or physical proximity.
Scope ofPolicy
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.
June 2023
61847929v4
91
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:
l . 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.
8
June 2023
61847929v4
W
9. Negligence or improper conduct leading to damage of employer -owned or
customer -owned property.
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
9
June 2023
61847929v4
93
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
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 refusedfor 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
10
June 2023
61847929v4
M,
he or she has learned in the course of performing job duties that involve access to
confidential and private information about employees.
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,
11
June 2023
61847929v4
95
any Utilities manager or Director, the Human Resources Representative, or the relevant
public safety authority.
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. COMMITMENT TO A DRUG AND ALCOHOL -FREE WORKPLACE
The Utilities is committed to providing a safe, healthy, and productive drug and alcohol -
free workplace.
To promote this goal, employees and others are required to report to work in appropriate
mental and physical condition to perform their jobs in a satisfactory manner. Being under
the influence of alcohol or illegal drugs (as classified under federal, state, or local laws),
including marijuana, while on the job poses serious health and safety risks to employees
and members of the public/others, which is not tolerated. As a condition of employment
employees must adhere to the terms and conditions of this policy.
Prohibited Conduct
The Utilities expressly prohibits the following activities at any time that the employee or
other person is either (1) on the Utilities' facilities (whether or not the employee is working)
or (2) on duty or conducting Utilities business (either on or away from the Utilities'
12
June 2023
61847929v4
M
facilities) (the locations in (1) and (2) above are collectively referred to as the "Workplace"
under this policy):
• The use, abuse, or being under the influence of alcohol, illegal drugs, or other
impairing substances.
• The possession, sale, purchase, transfer, or transit of any illegal or unauthorized
drug, including prescription medication that is not prescribed to the employee or
drug -related paraphernalia.
• The illegal use or abuse of prescription drugs.
While the use of marijuana has been legalized under the laws of some states for medicinal
uses, it remains an illegal drug under federal law and its use in, and as it impacts, the
Workplace is prohibited by the Utilities' policy. The Utilities does not discriminate against
employees on the basis of their off -duty use of medical marijuana that is in compliance
with any applicable state marijuana law. However, employees may not consume or be
impaired by marijuana while in the Workplace, even if the employee has a valid
prescription for medical marijuana.
Nothing in this policy is meant to prohibit the appropriate use of over-the-counter
medication or other medication that is legally prescribed to the employee, to the extent that
it does not impair an employee's job performance or safety or the safety of others.
Employees who take over-the-counter medication or other medication legally prescribed
to the employee should inform their immediate supervisor if they believe the medication
may impair their job performance, safety, or the safety of others or if they believe they
need a reasonable accommodation before reporting to work while under the influence of
that medication. For more information on how to request a reasonable accommodation,
please refer to the Utilities' Reasonable Accommodation policy.
A violation of this policy is subject to disciplinary action, up to and including termination
of employment or contractual relationship, and/or required participation in a substance
abuse rehabilitation or treatment program as may be provided by applicable state law. Such
violations may also have legal consequences.
Utilities -Sponsored Events
From time to time, the Utilities may sponsor in -person or remote social or business -related
events at which alcohol is served and/or usage is permitted. This policy does not prohibit
the use or consumption of alcohol at such events. However, if employees choose to
consume alcohol at such events, they must do so responsibly and maintain their obligation
to conduct themselves properly and professionally at all times with colleagues and/or
current or prospective clients.
Workplace Searches and Inspections
In order to achieve the goals of this policy and maintain a safe, healthy, and productive
work environment, the Utilities reserves the right at all times to search employees at the
Workplace, as well as their surroundings and possessions, for substances or materials in
violation of this policy. This right extends to the search or inspection of clothing, desks,
bags, briefcases, containers, packages, boxes, lunch boxes, and any vehicles on or in the
13
June 2023
61847929v4
97
Workplace where prohibited items may be concealed. Employees should have no
expectation of privacy while in the Workplace, except in restrooms, locker rooms, or
dressing areas.
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' 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 workplace, 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
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.
14
June 2023
61847929v4
M
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.
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.
15
June 2023
61847929v4
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.
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, INCL UDING 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.
16
June 2023
61847929v4
100
• 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.
• 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.
17
June 2023
61847929v4
101
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 inay be subject to disciplinary
action including, but not limited to, written warnings, revocation of access
privileges and termination of einployinent.
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
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 DepartmentParticipation
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
June 2023
61847929v4
102
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.
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
19
June 2023
61847929v4
103
• 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 inay be dismissed onlyfor cause, which inay
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.
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.
20
June 2023
61847929v4
104
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;
0 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
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, OVERTIME, AND COMPENSATORY TIME
General Policy
For purposes of timekeeping and overtime calculations, the regular workweek at the
Utilities runs from Tuesday through Monday.
21
June 2023
61847929v4
105
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.
Overtime & Overtime Compensation
Overtime is earned and compensated as follows.
All non-exempt employees earn overtime for all time worked in excess of forty (40) hours
during the workweek (Tuesday — Monday). Regular field workers earn overtime for
regular work performed in excess of eight (8) hours in a day.
Earned overtime will be compensated a rate equivalent to one and one-half times the
employee's regular rate of pay; except that time worked on Sundays and designated
Holidays will be compensated a rate equivalent to two times the employee's regular rate of
pay.
Generally, overtime compensation is paid directly to the employee on their regular payroll
check for the period in which the overtime is earned.
Alternatively, for up to 40 hours of earned overtime per year, non-exempt employees may
elect to receive and accrue Compensatory Time ("Comp Time") in lieu of direct overtime
pay. Comp Time is accrued and paid at the same rate as other earned overtime, i.e., at one
and a half times the employee's regular rate of pay; or two times the regular rate for time
worked on Sundays or designated holidays. Receipt and Use of Comp Time is explained
in more detail below.
Note. Further, if a field worker uses sick or vacation time during the regular eight -hour
day, this will not affect the earning of overtime for those hours worked in excess of the
regular workday. Also, when a field worker is mandated to start work prior to the normal
scheduled workday, 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; or two times the
regular rate for time worked on Sundays or designated holidays; or the employee may elect
to accrue Comp Time for the earned overtime as described below.
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 earn or receive overtime or, in turn, Comp Time.
Compensatory Time
Compensatory Time ("Comp Time") is paid time off for earned overtime in lieu of direct
pay. Comp Time is accrued at the rate of one and one-half hours (or, two hours for overtime
earned for work on Sundays or designated holidays) for each hour of overtime earned.
22
June 2023
61847929v4
106
Comp Time may be accrued and taken in lieu of direct overtime pay in accordance with
the following rules.
When an employee earns overtime they may elect to accrue Comp Time in lieu of
direct pay for the overtime.
Accrual of Comp Time is subject to a cap of 40 hours per calendar year. Once an
employee has accrued 40 hours of Comp Time in a calendar year, no further Comp
Time may accrue in that calendar year, even if the employee has used some or all
of the 40 hours previously accrued. Once the 40-hour cap is reached, all further
earned overtime will be paid directly on the paycheck for the period in which it is
earned.
When an employee elects Comp Time they will not receive any pay for the hour
of overtime worked on their paycheck for the period in which the overtime is
earned. Instead, the employee will accrue one and a half hours (or, two hours for
overtime earned for work on Sundays or designated holidays) of Comp Time to be
used at the employee's election within the calendar year before December 15.
Under no circumstances will Comp Time ever be forfeited. Accrued Comp Time
that has not been used by December 15 will be paid out in full on the last payroll
check of the calendar year. Under no circumstances will Comp Time carry over
to a following calendar year.
• In order to elect to accrue Comp Time in lieu of receiving direct overtime pay in
the current payroll period, an employee must mark their timesheet for "Comp
Time," clearly indicating the number of earned overtime hours they wish to accrue
as Comp Time in lieu of direct overtime pay.
In order to use Comp Time, employees are to follow the same procedures as apply
to other paid time off and leave requests, including making specific arrangements
with their supervisor. Use of Comp Time is subject at all times to the operating
needs of the Utilities.
If at the time an employee separates from employment with the Utilities they have
accrued unused Comp Time, all such Comp Time will be paid out at the hourly
pay rate the employee is earning at the time of separation.
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.
23
June 2023
61847929v4
107
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,
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 Employes 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 Employes 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 Employes 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.
24
June 2023
61847929v4
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,
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 workday, but timecards
25
June 2023
61847929v4
109
may be completed within the first hour of arriving at work on the subsequent workday.
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.
Time Deductions for Breaks
Field workers generally will receive one 15-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 ofSebeduled 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
26
June 2023
61847929v4
110
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.
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: Time Worked Remotely
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 the applicable provisions for exempt and
non-exempt employees of this Time Reporting Policy and the Fair Pay Policy below in
Section 27.
26. REMOTE WORK POLICY
Purpose
This policy governs the practice of working remotely, other than for field work, from
locations other than a Utilities facility, including an employee's home. Working remotely
is voluntary for the employee and at the sole discretion of Utilities management.
Elk River Municipal Utilities is committed to providing excellent customer service for our
customers, as well as attracting and retaining critical employee talent, increasing
productivity and efficiency and saving on workspace and costs. A remote work policy can
help provide these benefits. Working remotely should never be allowed to adversely affect
external or internal service or operational needs of the Utilities.
General Guidelines
Remote work as defined for this policy means working some or all scheduled hours and/or
performing some or all job duties from a location not on Utilities premises:
Working all scheduled hours off -site, or
Working some scheduled hours off -site and some on Utilities premises.
Employees may not access Utilities' systems or data remotely without first obtaining
written permission.
27
June 2023
61847929v4
ill
Regardless of location, a remote worker remains responsible for all job duties,
responsibilities and obligations associated with their position, even if such duties require
the employee to come into a Utilities facility while performing work remotely. Employees
and supervisors should seek to find solutions to maximize benefit to the Utilities and to the
employee.
Remote work arrangements will be considered by the Utilities on an individual, case -by -
case basis. A Remote Work Agreement form must be completed and approved by the
Supervisor and the employee before an employee will be permitted to begin a remote work
arrangement.
Because the primary focus of the Utilities is always on serving the needs of customers,
remote work arrangements may not be feasible for some positions. Field workers, in
particular, generally have duties that cannot be performed remotely. Remote work
arrangements may vary depending on the position and department. Supervisors are
responsible for determining remote work arrangements and schedules within their
departments, subject to the approval of the General Manager or their delegate.
The Utilities has sole discretion in considering an employee request to work remotely and
setting remote work policy for a particular department, employee group, or employee. In
exercising this discretion the Utilities may consider the following factors and guidelines
and any other relevant matters:
• The length of an employee's continuous, regular employment and degree of
success performing their job duties.
• Remote work requires the same focus on job duties as if the employee were in
the office; repeated interruptions from household members, pets or other
distractions may disqualify an employee from remote work.
• There must be adequate department coverage during all standard hours.
• There must be no adverse impact on internal or external customers.
• There must be no known safety issues associated with working remotely.
• There must not be any known security issues with technology or otherwise.
• Employees working under a Performance Improvement Plan are not eligible for
remote work.
• Internal and external customers must be given direction on who to contact in
the employee's absence if the employee is not available during all business
hours.
• A remote work schedule must not result in additional overtime for the
employee or co-workers.
• The employee will not be allowed to work outside the State of Minnesota
except when travelling on Utilities business or during time when the employee
is otherwise scheduled to be away from work.
• The Utilities may end an employee's remote work arrangement at any time.
• There may be other or additional considerations when an employee with a
qualifying disability requests remote work as a reasonable accommodation. The
2s
June 2023
61847929v4
112
Utilities will follow its Reasonable Accommodations Policy and consider such
requests on a case by case basis.
Employees and supervisors may consider various types of scheduling options for
efficiency and productivity in remote work arrangements, including:
• Entire weeks on site or working remotely.
• Certain days on site; remaining days working remotely.
• Whether to have entire teams of employees on site on the same day(s) on a
regular basis.
Employees should expect to remain flexible as to their days and hours for work onsite and
at remote locations in accordance with the particular duties of their job and the needs of
the Utilities. Remote work arrangements remain subject at all times to change by the
Utilities.
Work Hours, Calendars and Meetings
An employee with a remote work arrangement must agree to be accessible by phone, virtual
computer software and email as needed during their scheduled working time. Depending
on the employee's position and the needs of the Utilities, the work schedule may include
core hours during which the employee must be available or the schedule may include
greater flexibility for the employee to work outside the Utilities' normal business hours.
Non-exempt remote workers (those who are classified as not exempt from the overtime
requirements of the Fair Labor Standards Act (FLSA)) are required to record all hours
worked in a manner designated by the Utilities as discussed in Sections 25 and 27 of this
Handbook. Overtime during a remote work arrangement is subject to the same
requirements for approval in advance as all other overtime.
Exempt employees, (those who are classified as exempt from the overtime requirements of
the FLSA must follow the Utilities' applicable payroll and timekeeping policies as
discussed in Sections 25 and 27 of this Handbook and are generally accountable for their
normal work week hours.
All remote workers must use sick, vacation or compensatory time to cover periods of time
off in accordance with the Utilities' normal policies.
Remote workers are responsible for keeping their electronic calendars up to date and
accessible to anyone in the Utilities during all scheduled work hours. Appointments for
doctor or other private appointments can be marked as "private" or "personal time out of
office." Please include travel time as needed to help others schedule meetings.
Remote workers must attend all required meetings, including those which normally would
be held on a remote workday, and are also responsible for obtaining information from
29
June 2023
61847929v4
113
optional meetings when such meetings impact their work with the Utilities. Supervisors
are responsible for setting expectations for their work teams regarding whether meeting
attendance will be in -person, remote or hybrid, considering these guidelines:
• Meetings of a sensitive, highly interactive, or complex nature are best held
entirely in -person (e.g., brainstorming, troubleshooting, project "kick-off'
meetings, performance reviews, disciplinary meetings).
• In -person business meetings with others may not be held in an employee's
home.
Work Environment and Technology
For employees with a remote work arrangement, the employee must establish an
appropriate work environment to avoid problems associated with safety or poor
ergonomics. The Utilities will not be responsible for costs associated with initial setup of
an employee's remote office such as remodeling, furniture, lighting, repairs, or
modifications to the office space. Employees will be offered appropriate guidance in setting
up a workstation designed for safe, comfortable work.
The Utilities may provide employees with appropriate technology (e.g., computer,
monitor(s), docking station, mouse, keyboard, headset) for one location, either on -site at
Utilities officers or off -site. Employees who work in a hybrid remote work arrangement
(both on and off site) are responsible for providing the technology required to work
remotely effectively and efficiently. This includes a reliable internet connection. All
Utilities -owned equipment must be returned upon termination of the remote work
arrangement or at termination of employment.
The Utilities will supply the employee with the appropriate office supplies (pens, paper,
etc.) for their assigned job responsibilities, which the employee must pick up on site. An
employee may be required to come into the office in order to perform some duties such as
mailing, scanning and photocopying.
The Utilities may not provide reserved on -site office space for employees with remote work
arrangements.
Utilities Employment Policy and Benefits Coverage
The Utilities' normal policies and procedures (for example, computer use, data practices,
respectful workplace, outside employment, etc.) apply to employees working remotely.
Employees should ask their supervisors if they have any questions about whether or how a
particular Utilities policy applies to a remote work environment.
An employee working remotely is generally covered by the Utilities' Workers'
Compensation insurance while acting in the course and scope of employment and must
report any injury to their supervisor as soon as possible.
30
June 2023
61847929v4
114
27. 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.
Record Your Time And Review Your Pav 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.
31
June 2023
61847929v4
115
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
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
32
June 2023
61847929v4
116
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.
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.
33
June 2023
61847929v4
117
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.
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.
34
June 2023
61847929v4
118
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 contributions
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 workday.
• 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,
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.
28. BREAKS FOR NURSING MOTHERS TO PUMP BREAST MILK
Employees who need to express breast milk for their infant child _during the twelve (12)
months following the birth of the child will be provided with reasonable break times for
this purpose each day, as long as such breaks do not unduly disrupt company operations.
As far as possible, such breaks must run concurrently with regular break times otherwise
provided; and must be arranged so that the requirements of the job can be adequately met
by other staff on duty. It is not necessary for an employee to clock out for such breaks
unless regular unpaid meal break time is being used; the Utilities will not reduce the
compensation of any employee as a result of taking lactation breaks.
Employees needing time to express breast milk should contact their supervisor to inform
them of the need and discuss an appropriate private location. For lactation breaks
Employees will be provided an appropriate private (non -bathroom) space with an electrical
outlet that is shielded from view and free from intrusion.
35
June 2023
61847929v4
119
29. 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 workday, 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.
30. 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 or thirty minute commute of the power plant.
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.
36
June 2023
61847929v4
120
• While on -call, workers must remain within the 20-mile
residency radius or a 30 minute commute of the power
plant.
• 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 fourteen (14) 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 14 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.
When a recognized paid holiday falls within the on -call block
covered by the worker (whether a week or portion thereof), eight
(8) vacation time hours will be awarded as additional on -call
compensation.
37
June 2023
61847929v4
121
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
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.
38
June 2023
61847929v4
122
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.
31. 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.
32. 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.
33. LEAD PAY DIFFERENTIAL
An employee who is currently a lineworker shall assume the duties of a lead lineworker
when the lead lineworker is absent from a crew, provided that only the most senior
39
June 2023
61847929v4
123
lineworker on a crew shall assume the lead lineworker's duties. The lineworker 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 lineworker assumed such lead duties.
The rate differential provided in this policy for lineworkers 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 lineworker
is absent.
An employee who is currently a water operator shall qualify for and assume the duties of
a lead water operator when he/she performs general functions of the lead water operator,
such as providing work direction for the other water operators in the absence of both the
water superintendent and water operations foreperson. The water operator 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 water operator assumed such lead duties.
The rate differential provided in this policy for water operators 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 directed by the water operations
foreperson or water superintendent.
34. LONGEVITY PAY
The Utilities values long term dedicated service by Employees. Beginning on January 1,
2022, a Longevity Bonus will be paid to qualifying eligible employees based on their years
of service according to the schedule below. The purpose of the Longevity Bonus is to
recognize the service of Employees that work for the Utilities long-term.
Regular full-time and regular part-time Employees are eligible for a Longevity Bonus when
they qualify as set forth in this Section.
Regular full-time employees are eligible to receive a Longevity Bonus once each time they
qualify by reaching a milestone anniversary date in accordance with the following
schedule:
Milestone: Years of Service Lon Pay PayPay Amount
8 years
12 years
16 years
20 years
24 years
28 years
32 years
40
June 2023
$1,550
$2,025
$2,100
$2,125
$2,300
$3,000
$3,000
61847929v4
124
Regular part-time employ are eligible to receive a Longevity Bonus once each time
they qualify by reaching a milestone anniversary date in accordance with the following
schedule:
Milestone: Hours of Service Longevity Bonus Amount
16,640
$1,550
24,960
$2,025
33,280
$2,100
41,600
$2,125
49,920
$2,300
58,240
$3,000
66,560
$3,000
A Longevity Bonus is paid in one lump sum within 60 days of the anniversary date on
which the Employee reaches the relevant milestone. Qualifying Employees who are
eligible for a Longevity Bonus will be invited to the monthly Commission meeting in the
month of their anniversary date, where the Commission Chair and the Employee's manager
will present the Longevity Bonus paycheck to the Employee(s).
Because longevity pay is considered supplemental income by the Internal Revenue Service,
22% will be withheld in taxes from the employee's longevity pay during check processing.
35. 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. Coniputer Loans up to $1,200.00 (12 month term)
36. 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.
41
June 2023
61847929v4
125
Employees are responsible for their paychecks upon receipt. Direct deposit is preferred
but a check is available to employees upon request.
37. 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
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 forfeiture 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.
38. 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.
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.
42
June 2023
61847929v4
126
43
June 2023
61847929v4
127
BENEFITS
39. 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. Further, to be clear, nothing in the Benefits sections or elsewhere in this
Handbook creates a contract with specific terms between the Utilities and any employee.
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.
40. VACATION
All regular full-time employees shall accrue vacation according to the following schedule:
Years of Service Accrued Per Pav Period Accrued Per Year
0-4
3.70 hours
12 days
5
4.00 hours
13 days
6-9
4.62 hours
15 days
10
4.93 hours
16 days
11
5.24 hours
17 days
12
5.54 hours
18 days
13
5.85 hours
19 days
14-15
6.16 hours
20 days
16-18
6.77 hours
22 days
19
7.70 hours
25 days
20-21
8.00 hours
26 days
22-23
8.31 hours
27 days
24+
8.62 hours
28 days
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, 2021.
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.
44
June 2023
61847929v4
128
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, and employees terminated involuntarily by the
Utilities for reasons other than an ethics violation, fi^aud, theft, or other egregious
misconduct, 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 an ethics violation, fraud, theft, or
other egregious misconduct 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
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.
41. 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
45
June 2023
61847929v4
129
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 paycheck 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
42. PAID SICK LEAVE
Regular full-time employees accrue sick leave at the rate of 3.70 hours per pay period
(approximately 8 hours per month or 12 days per year). 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
46
June 2023
61847929v4
130
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. Documentation 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. 55, 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 workday. 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.
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.
43. PAID HOLIDAYS
Regular full-time employees who are non-exempt will be paid for eight (8) hours at their
base wage rate for each of the following holidays:
New Years Day Labor Day
Martin Luther King Day Veterans Day
47
June 2023
61847929v4
131
Presidents Day
Thanksgiving Day
Memorial Day
Friday following Thanksgiving Day
Juneteenth Day
Christmas Eve Day
Independence Day
Christmas Day
Eligible part-time employees who are non-exempt 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.
Exempt employees are permitted to observe the designated holidays above without
reduction of their salary.
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.
44. 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: lineworker'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.
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.
48
June 2023
61847929v4
132
45. 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
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.
49
June 2023
61847929v4
133
46. 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 Creditln 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.
47. 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 a majority of the premium
charged, and will set the employee share of the premium for each level of coverage
available. The Utilities current group health insurance allows the Utilities to offer a Health
Savings Account -related plan. Plans, plan designs, and employee share of premiums may
change from time to time. The amount of the monthly premium for a health insurance plan
50
June 2023
61847929v4
134
that is the responsibility of the employee is currently as follows. Premiums and employee
shares are subject to change from time to time.
COVERAGE MONTHLY EMPLOYEE SHARE
• Employee $109
• Employee + 1 $218
• Family $328
Employees should consult the applicable Summary Plan Description (SPD) for details
regarding coverage and eligibility. A copy of the SPD will be provided to employees and
is available upon request.
48. 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.
49. 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.
50. LIFE INSURANCE
Life insurance is provided to each employee at a rate of Two and One Half times (21/2) the
employee's annual salary, to a maximum of $85,000.00. 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.
51. SHORT TERM DISABILITY INSURANCE
A Short -Term Disability Plan is provided to eligible employees who regularly work at
least 30 hours per week. Scheduled benefit amount: 60% of weekly earnings subject to a
maximum amount of $1,000.00 per week. Employees may qualify for this benefit after a
51
June 2023
61847929v4
135
fourteen day elimination period with a maximum coverage amount up to eleven weeks.
Employees should consult the Summary Plan Description ("SPD") for details regarding
coverage and eligibility. A copy of this SPD will be provided to employees and is
available upon request.
52. VISION INSURANCE
Eligible employees who regularly work at least 30 hours per week are eligible to enroll in
the Utilities' visors 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.
53. 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.
54. 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.
All full-time Utilities employees with at least three months of continuous
employment are potentially eligible for reimbursement under this policy.
52
June 2023
61847929v4
136
2. The Utilities may pay up to 100% reimbursement of the costs for tuition,
registration, fees, books and course required materials after successful completion
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.
53
June 2023
61847929v4
137
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.
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.
55. 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.
54
June 2023
61847929v4
138
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.
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.
56. 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. §51813.01),
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 Family Member Leave time will run
concurrently.
55
June 2023
61847929v4
139
57. 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
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.
58. 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.
59. 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 other 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
56
June 2023
61847929v4
140
• Is required by proper authority to continue in such military or naval
service beyond the time herein limited for such leave.
60. 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
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.
61. 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.
57
June 2023
61847929v4
141
62. 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.
63. 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.
64. 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.
65. 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
ss
June 2023
61847929v4
142
Utilities will reduce the employee's pay by the amount the employee is paid to serve as an
election judge.
66. PAID LEAVE DONATION
With the written consent of the Utilities' General Manager or Finance Manager, employees
wishing to do so may voluntarily donate accrued paid leave time that is presently available
for use 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 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.
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 and vacation
under the Utilities' 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. 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 paid sick leave; ii)
a total of eight hours of vacation; iii) a total of sixteen hours, with eight hours being
59
June 2023
61847929v4
143
vacation and eight hours being paid sick leave; iv) a total of sixteen hours, with
sixteen hours being paid sick leave; v) a total of sixteen hours, with sixteen hours
being vacation time.
2. The donor employee must complete a Paid Leave Donation Form prescribed by
the Utilities in order to donate paid leave.
3. 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.
4. The Utilities will set a deadline for donations of paid leave to the receiving
employee ("Donation Deadline"). No donations of paid leave will be accepted in
response to the receiving employee's Request for Paid Leave Donation after the
Donation Deadline.
5. The Utilities will set a date on which submitted donations of paid leave will
become final and effective ("Donation Effective Date"). The Donation Effective
Date shall be no more than ten business days after the deadline for donations to the
receiving employee.
6. Before the Donation Effective Date, if Paid Leave Donation Forms are submitted
for a total amount of leave that is more than the number of hours requested by the
employee in the Paid Leave Donation Request Form, or for more than the
maximum total donation of 240 hours, the Utilities will pro rate donations to the
maximum allowed, among all employees submitting a Paid Leave Donation Form
for the receiving employee and will notify all such employees in writing of such
pro rating and the final number of hours from their Paid Leave Donation Form that
will be donated to the receiving employee on the Donation Effective Date.
7. On the Donation Effective Date the Utilities will transfer all paid leave donations
that are indicated collectively on the Paid Leave Donations Forms submitted,
prorated, if necessary, in accordance with this policy, to the account of the
receiving employee; and will reduce the corresponding account balances of the
donating employees accordingly.
8. Donation of paid leave is permanent and final as of the Donation Effective Date
and cannot be rescinded thereafter. Donated paid leave may not be transferred
back to the donor after the Donation Effective Date under any circumstances. If
the donated paid leave is not used by the receiving employee it is forfeited by all
parties.
9. 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.
60
June 2023
61847929v4
144
10. 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.
11. 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).
12. Donated paid leave must be used by the receiving employee concurrently with any
applicable unpaid leave available to the receiving employee.
13. Donated paid leave must be used during the leave taken for the purpose submitted
in the leave request under this policy.
14. Donated paid leave not used as described in this policy will be forfeited by the
recipient.
15. When used by the receiving employee, donated paid leave will be paid at the
receiving employee's current rate of pay.
16. 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.
17. The Utilities will treat the identity of donor employees under this policy as private
and confidential information.
18. This policy applies on a prorated basis to part-time employees eligible to accrue
and receive paid leave time.
46703186v1
61
June 2023
61847929v4
145
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. Further, I understand that nothing in this Handbook creates a contract with specific
terms 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
62
June 2023
Print or Type Name
Employee Signature
61847929v4
146
��i
Elk River
Municipal Utilities
COMMISSION POLICY
Section:
Governance
Category:
Delegation to Management Policies
Policy Reference:
Policy Title:
Performance Metrics and Incentive
GAgl
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 UMMIC
Performance Metrics Policy Scorecard ("Scorecard") has been created. The Scorecard 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.
Page 1 of 3
147
ERMU Commission Policy — G.4g 1 Performance Metrics and Incentive Compensation
2.0 UTILITIES PERFORMANCE METRICS SCORECARD
As reflected on the Scorecard, the Performance Metrics are divided into the following three
categories: Safety, Reliability and Quality of Utility Services; Workforce Development; and
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 Scorecard. As discussed above, the Performance
Metrics and thus the Scorecard 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 UPMIC 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
3% 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 Scorecard ("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 UPMIC Performance -Based Compensation Incentive has been earned in the
Measurement Period. (For example if the Multiplier equals 100%, the distribution would equal
3%. If the Multiplier equals 75%, the distribution would equal 2.25%.) 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 Scorecard, 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) 3% of the Utilities' total gross wages paid to Qualifying Employees during the
Measurement Period.
Page 2 of 3
HM
ERMU Commission Policy— G.4g1 Performance Metrics and Incentive Compensation
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) 3% 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 3% x 100% _
$1,500.)
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 UPMIC 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.
GP:3300714 v4
POLICY HISTORY:
Adopted December 12, 2012
Revised January 14, 2020
Revised December 13, 2022, effective January 1, 2023
Revised December 12, 2023, effective January 1, 2024
Page 3 of 3
149
Tuesday, January 9:
Tuesday, February 13:
• Annual Review of Committee Charters
• Review Strategic Plan and 2023 Annual Business
Plan Results
Tuesday, March 12:
Tuesday, April 9:
• Oath of Office
• Audit of 2023 Financial Report
• Election of Officers
• Financial Reserves Allocations
• Annual Commissioner Orientation and Review
• Review 2023 Performance Metrics
Governance Responsibilities and Role
Tuesday, May 14:
Tuesday, June 4:
• Annual General Manager Performance
• Annual Commission Performance Evaluation
Evaluation and Goal Setting
Tuesday, July 9:
Tuesday, August 13:
• Review and Update Strategic Plan
• Annual Business Plan — Review Proposed 2025
Travel, Training, Dues, Subscriptions, and Fees
Budget
Tuesday, September 10:
Tuesday, October 8:
• Annual Business Plan — Review Proposed 2025
• Annual Business Plan — Review Proposed 2025
Capital Projects Budget
Expenses Budget
Tuesday, November 12:
Tuesday, December 10:
• Annual Business Plan - Review Proposed 2025
• Adopt 2025 Official Depository and Delegate
Rates and Other Revenue
Authority for Electronic Funds Transfers
• Adopt 2025 Fee Schedule
• Designate Official 2025 Newspaper
• 2025 Stakeholder Communication Plan
• Approve 2025 Regular Meeting Schedule
• Adopt 2025 Governance Agenda
• Adopt 2025 Annual Business Plan
150
Elk Rive
Municipal Utilities
2024 Organizational Chart
Last Updated March 1, 2024
46 of 47 FTE
Eng L-g AM.
151
Utilities Commission Members
Paul Bell
Email: pbell@ermumn.com
Term Expires: 02/28/27
John Dietz, Utilities Chair
Council Representative
Email: jdietz@ermumn.com
Term Expires: 02/28/25
Mary Stewart
Email: mstewart@ermumn.com
Term Expires: 02/28/25
Matt Westgaard
Council Representative
Email: mwestgaard@ermumn.com
Term Expires: 02/28/26
Nick Zerwas
Email: nzerwas@ermumn.com
Term Expires: 02/28/26
152
2024
Janu
February
S
M
T
W
T
F
S
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
181
191
201
211
221
231
24
251
261
271
281
29
March
S
M
T
W
T
F
S
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
171
181
191
201
211
221
23
241
251
261
271
281
291
30
31
Utilities Commission Meeting Schedule
April F July
May
S
M
T
W
T
F
S
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30E
-H
June
S
M
T
W
T
F
S
1
2
3
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
261
271
28
29
30
August
S
M
T
W
T
F
S
1
2
3
4
5
6
7
8
9
10
11
12
14
15
16
17
18
19
20
21
22
23
24
251
26
27
281
291
30
31
September
S
M
T
W
T
F
S
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
291
30
NOTE: ALL DATES ARE SUBJECT TO CHANGE
I October I
November
S
M
T
W
T
F
S
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
December
S
M
T
W
T
F
S
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
301
31
Commission meetings are held the second Tuesday of each month and begin at 3:30 p.m.
Commission meetings are held at Elk River City Hall, 13065 Orono Parkway, Elk River, MN, unless otherwise posted.
.The June meeting will be held on the first Tuesday of the month to ensure a quorum with commissioners expected to attend a conference.
The August meeting will be held at 1435 Main Street, Elk River, MN as the regular location will be used for the Primary Election.
Holidays
Jan 1 - New Year's Day
Jan 15 - Martin Luther King Jr. Day
Feb 19 - Presidents' Day
May 27 - Memorial Day
June 19-Juneteenth
July 4 - Independence Day
Sept 2 - Labor Day
Nov 11- Veterans Day
Nov 28 - Thanksgiving
Nov 29 - Day after Thanksgiving
Dec 24 - Christmas Eve
Dec 25 - Christmas Day
153
Sherburne County Parade
July 20, 2024
MMPA Annual Meeting
July 23, 2024 - Le Sueur, MN
MMUA Summer Conference
August 19-21, 2024 - Fargo/Moorhead
154
Elk Riv
Municip
al Utilities
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 use 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 2024 business mileage reimbursement rate is 67 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.
155