6.2.B. SR 03-02-2009~i
City of
Elk -~
River
REQUEST FOR ACTION
To Item Number
Ci Council 6.2.B
Agenda Section Meeting Date Prepared by
Administration March 2, 2009 Lori ohnson, Ci Administrator
Item Description Reviewed by
Shared Personnel Agreement (Human Resources Agreement
with Elk River Municipal Utilities) Reviewed by
Action Requested
Consider the Shared Personnel Agreement by and between the City of Elk River and Elk River Municipal
Utilities (ERMU).
Back~round/Discussion
As part of Elk River Municipal Utilities reorganization, the ERMU Commission requested that the City
consider providing human resource services to ERMU. The City Council agreed in concept to provide
the services; however, in order to formalize the arrangement, the City Council and ERMU Commission
need to approve the attached Shared Personnel Agreement (Agreement) .outlining the provided services.
The Agreement states that the City will provide human resource services to ERMU as outlined in
attachment A. At this time, we do not anticipate this will be overly time consuming and, therefore, do not
plan to charge ERMU for use of City HR staff. We will, however, track the hours spent on human
resource functions fox ERMU and request that the agreement be amended in the future if the City is
committing a large number of hours or resources to ERMU to meet the obligations under this
Agreement.
This Agreement was drafted by Mark Mathison of Gray, Plant, and Mooty and has been reviewed by City
Attorney Peter Beck. The ERMU Commission approved this Agreement at its Commission meeting on
February 24.
Attachments
^ Shared Personnel Agreement
Action Motion by Second by Vote
Follow Up
S:\C:ouncil\],ori\2009\Shared Personnel Agreement UtiGties.doc
SHARED PERSONNEL AGREEMENT
THIS AGREEMENT made and entered into by and between the City of Elk River, Sherburne
County, State of Minnesota, (hereinafter referred to as the "City") 13065 Orono Parkway, Elk
River, Minnesota 55330, and Elk River Municipal Utilities, 13069 Orono Parkway, Minnesota,
55330 (hereinafter referred to as the "Utilities").
WITNESSETH
WHEREAS, the Utilities and City are both corporate bodies politic under the Laws of the State
of Minnesota; and
WHEREAS, both the City and the Utilities desire to enter into this Agreement through which
the City will share personnel for the provision of human resources services to the Utilities; and
WHEREAS, this Agreement is authorized and provided for by Minnesota Statue § 471.59.
NOW, THEREFORE, in consideration of the mutual undertaking and agreements hereinafter
set forth, the City and the Utilities agree as follows:
1. SERVICES TO BE PROVIDED. An employee or employees of the City's human
resources department will provide human resources services to the Utilities as described
in Attachment A. The City shall notify the Utilities as to which employee or employees
shall provide such services. Any City employee providing services to the Utilities will
continue, at all times, to be supervised, controlled, and directed by the City.
2. TERM OF THE AGREEMENT. The term of this Agreement shall be for one year from
the effective date of this Agreement. This Agreement shall be renewed each year
automatically for successive one year terms unless either party gives written notice to the
other of that party's intent not to renew this Agreement.
3. PAYMENT FOR SERVICES. The Utilities shall not be required to pay the City for
providing the services outlined on Attachment A. However, should the City determine
that it requires payment for services rendered, it shall notify the Utilities in writing and
this Agreement may be modified as outlined in Section 8B below.
4. CONTRACT ADMINISTRATION.
A. The City designates the City Administrator or her designee to represent the City in all
matters connected with the Agreement on behalf of the City.
B. The Utilities designates its General Manager, or his designee, to represent the Utilities
in all matters connected with this Agreement on behalf of the Utilities.
C. The City's designee shall be available at reasonable times upon reasonable notice to
confer with the General Manager of the Utilities. Whenever feasible, practical, and
not in conflict with mandated duties and responsibilities, the City shall endeavor to
provide the services agreed upon herein in accordance with the intent of the Utilities.
D. The Utilities and the City shall provide the full cooperation and assistance of its
officers, employees, and agents to each other in the performance of this Agreement.
5. RELATIONSHIP OF THE PARTIES. The parties agree that nothing herein contained is
intended or should be construed in any manner as creating or establishing the relationship
of co-partners or joint employers between the parties or as constituting either party as the
agent, representative or employee of the other for any purposes or in any manner
whatsoever.
The City, and through the City its employees, shall be independent contractors with
respect to all services performed for the Utilities under this Agreement. The personnel of
the City who engage in the performance of this Agreement shall not be considered
employees of the Utilities for purposes of wages, benefits, unemployment compensation
worker's compensation or any other employment related matters.
Employees of the Utilities shall not be or become, nor be considered or treated as,
employees of the City for any purpose by virtue of the sharing of personnel services or
the delegation of authority established by, or any other aspect of, this Agreement.
6. INDEMNIFICATION AND INSURANCE.
A. Each party agrees that it will be responsible for its own acts and the results thereof to
the extent authorized by law and shall not be responsible for the acts of the other
party and the results thereof. Regardless of the City's provision of services under this
Agreement, the Utilities bears ultimate responsibility for all of the Utilities' duties of
legal compliance with respect to employment-related matters or any other matters.
Each party agrees to indemnify the other in accordance with its responsibilities. The
City's and the Utilities' liability is governed by Minnesota Statutes, Chapter 466.
B. The City and Utilities each warrant that they are able to comply with the foregoing
indemnity requirement through an insurance or self-insurance program.
7. SUCCESSORS, SUBCONTRACTING AND ASSIGNMENTS. The parties agree not to
assign, subcontract, transfer or pledge this contract and/or the services to be performed
hereunder whether in whole or in part, nor assign any monies due or to become due to
them hereunder without prior written consent of the other party.
8. AMENDMENTS AND MODIFICATIONS.
A. The parties agree and understand that the entire Agreement between the parties is
contained herein and that this Agreement supersedes all oral agreements and
negotiations between the parties relating to the subject matter hereof. All items
referred to in this Agreement are incorporated or attached and are deemed to be part
of this Agreement.
B. Unless provided to the contrary herein, the parties may from time to time make
amendments or modifications to this Agreement. Such changes, including any
adjustments in the level of service or the fee or lack thereof for services, which are
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mutually agreed upon by and between the City and the Utilities shall be effective
when incorporated in written amendments to this Agreement and approved by both
the City and the Utilities.
9. TERMINATION OF THE AGREEMENT. Either party may terminate this Agreement
by giving the other party sixty (60) days written notice of cancellation.
10. NOTICES. Any notice or demand which must be given or made to a party hereto under
the terms of this Agreement or any statute or ordinance governing the same shall be in
writing, and shall be sent by certified mail or courier addressed as follow:
CITY: City Administrator
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
UTILITIES: General Manager
Elk River Municipal Utilities
13069 Orono Parkway
Elk River, MN 55330
11. MINNESOTA LAWS GOVERN. The laws of the State of Minnesota shall govern all
questions and interpretations concerning the validity and construction of this Agreement
and the legal relations between the parties and performance under this Agreement.
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12. EXECUTION DATE. The parties agree that the execution date of this Agreement shall
be the first date on which the Agreement has been fully executed by all of the
representatives whose signatures are to appear below.
CITY OF ELK RIVER
Stephanie Klinzing, Mayor
ATTEST:
Tina Allard, City Clerk
Date
ELK RIVER MUNICIPAL UTILITIES
Vance Zehringer, Interim General Manager
Date
GP:2518610 V2
Commission Chair
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Attachment A
The City will provide services under this Agreement as described in this Attachment A. The
City shall provide an employee or employees (hereinafter the "HR Staff') to serve as a primary
point of contact for Utilities managers and employees with respect to employment and human
resources issues. In providing such services, the HR Staff will work with the Utilities' designee
and, as appropriate, may raise issues directly with Members of the Utilities Commission.
Specifically, the HR Staff shall provide the following services to the Utilities:
1. Be a primary designated recipient for, and attend to the processing of, work-related
reports, complaints, grievances and workplace concerns of any kind made by employees
of the Utilities;
2. Manage employment dispute resolution processes for the Utilities;
3. Assist the Utilities management in facilitating and completing performance reviews with
all employees as requested by the Utilities;
4. Manage employee discipline and termination decisions and processes, working with the
Utilities managers in the same manner that the City's human resource staff works with
City managers with respect to City personnel;
5. Assist the Utilities with pay equity compliance administration and reporting as requested
by the Utilities;
6. To the extent the HR Staff has actual knowledge of federal and state law changes that
may affect the Utilities employee handbook, the HR Staff will notify the Utilities of such
changes to assist the Utilities with its legal compliance. The HR Staff may recommend
that such policy changes be placed on the agenda for a future Utilities Commission
meeting for approval; and
7. Provide other general human resources functions as needed.
The Utilities will retain the following functions, but the HR Staff Member may provide guidance
uponxequest of the Utilities, on matters such as:
1. Administration of the Utilities' benefits and payroll;
2. Administration of employee recruiting and selection process;
3. Employee orientation and training (including continuing management training); and
4. Employment recordkeeping and Data Practices management.
The designees of the City and the Utilities may, from time to time, confer and clarify these
services.
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