5.1. ERMUSR 05-12-2009Ji
Elk River -=
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
April 30, 2009
To: Elk River Municipal Utilities Commission
John Dietz
Jerry Gumphrey
Daryl Thompson
From: Troy Adams
5.1
Phone: 763.441.2020
Fax: 763.441.8099
Subject: Review and Consider Shared Personnel Agreement of City Public Works Director
With review and recommendations from the Utilities Commission and Management, The City of
Elk River has revised an agreement between the Utilities and the City for the sharing of the City
Public Works Director for supervision of the Water Superintendent. This revised agreement is
attached for the Commission's review and consideration.
SHARED PERSONNEL AGREEMENT BETWEEN THE CITY OF ELK RIVER
AND ELK RIVER MUNICIPAL UTILITIES (ERMU) REGARDING THE CITY'S
PUBLIC WORKS DIRECTOR AND ERMU'S WATER DEPARTMENT
THIS AGREEMENT ("Agreement") made and entered into by and between the City of
Elk River, ("City") 13065 Orono Parkway, Elk River, Minnesota 55330; and Elk River
Municipal Utilities ("Utilities") 13069 Orono Parkway, Elk River, Mirmesota, 55330.
WITNESSETH
WHEREAS, Utilities operates the City of Elk River electric and water utilities; and
WHEREAS, City operates and manages all other municipally owned infrastructure
within the City, including the public streets and sanitary sewer system; and
WHEREAS, much of the infrastructure for the City of Elk River water system is located
under public streets within right of way owned and managed by the City; and
WHEREAS, development and operation of that portion of the water system located
within public right of way requires careful coordination with and supervision by the City
Public Works Department; and
WHEREAS, management and operation of the water system also requires careful
coordination with the City Public Works Department, which manages the City's sanitary
sewer system; and
WHEREAS, City and Utilities agree that it will be more efficient, and the public interest
will be better served, by having the Water Superintendent under direct supervision of the
City Public Works Director and;
WHEREAS, City and Utilities desire to enter into this Agreement providing for
assistance with management of the City of Elk River Water System by the City Public
Works Director; and
WHEREAS, this Agreement is authorized and provided for by Minnesota Statutes §
471.59 and by Minnesota Statutes § 412.361, Subd. 5.
NOW, THEREFORE, in consideration of the mutual undertaking and agreements
hereinafter set forth, City and Utilities agree as follows:
1. SERVICES TO BE PROVIDED. The City Public Works Director, or such other City
employee or representative as the City Administrator or City Council shall designate,
shall provide to Utilities the Supervisory Services described in Attachment
A (" Supervisory Services"). Any City employee or representative providing Supervisory
Services to Utilities will continue, at all times, to be supervised, controlled, and directed
by the City. Any City employee or representative providing Supervisory services for the
Water Department would report as needed to the Elk River Municipal Utilities
Commission concerning any matters that deal with the Water Department.
2. RESPONSIBILITIES RETAINED BY UTILITIES. Utilities shall continue to operate
the City of Elk River Municipal Water Utility. The Supervisory Services to
be provided by City to Utilities shall be limited to the assistance with management,
supervisory, advisory, planning and budgeting services described in Attachment A.
Utilities shall retain all other responsibilities for operating the City Water Utility
including, but not limited to: employment and disciplinary authority of the personnel
necessary to operate the water system; acquisition, maintenance and disposition of the
land, equipment and materials necessary to operate the water system; establishing and
collecting water rates, fees and other charges; and adoption of policies, procedures and
rules for the operation of the water system.
3. 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 one party gives 60 days written notice
to the other of the first party's intent not to renew this Agreement.
4. PAYMENT FOR SERVICES. Utilities shall pay to City a monthly fee for the
Supervisory Services provided to Utilities. The monthly fee for the initial term of this
Agreement shall be $1,000. This fee will be reviewed by City and Utilities after six
months and adjusted up or down, based on hours worked for the Water Department by
the Public Works Director. The fee should also be reviewed on an annual basis.
5. CONTRACT ADMINISTRATION.
A. City designates its Public Works Director, or such other representative as the City
Administrator or City Council shall designate, to represent City in all matters
connected with this Agreement on behalf of City.
B. Utilities designates its Director of Operations, or such other representative as
the Utilities Board of Commissioners shall designate, to represent Utilities in all
matters connected with this Agreement on behalf of Utilities.
C. Each party's designee shall be available at reasonable times upon reasonable notice to
confer with the other party's designee. Whenever feasible, practical and not in
conflict with mandated duties and responsibilities, City shall endeavor to provide the
Supervisory Services in accordance with the intent of Utilities.
D. Utilities and City shall provide the full cooperation and assistance of its officers,
employees, and agents to each other in the performance of this Agreement.
6. 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.
City shall be an independent contractor with respect to all services performed for Utilities
under this Agreement. City personnel who engage in the performance of this Agreement
shall not be considered employees of Utilities for the purposes of wages, benefits,
unemployment compensation worker's compensation or any other employment related
matters.
Employees of Utilities shall not be or become, nor be considered or treated as, employees
of City for any purpose by virtue of this Agreement.
7. INDEMNIFICATION AND INSURANCE.
A. Each party agrees that it will be responsible for its own acts and the results thereof to
the extent authorized bylaw and shall not be responsible for the acts of the other
party and the results thereof. 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. City and Utilities each warrant that they are able to comply with the foregoing
indemnity requirement through an insurance or self-insurance program.
8. 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.
9. 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. The parties may from time to time make amendments or modifications to this
Agreement. Such changes, including any changes to the Supervisory Services, which are
mutually agreed upon by and between City and Utilities shall be effective when
incorporated in written amendments to this Agreement and approved by both City and
Utilities.
10. TERMINATION OF THE AGREEMENT. Either party may terminate this
Agreement by giving the other party sixty (60) days written notice of cancellation.
11. 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: Director of Operations
Elk River Municipal Utilities Commission
13069 Orono Parkway
P.O. Box 430
Elk River, MN 55330-0430
12. 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.
13. EFFECTIVE DATE. The parties agree that the effective date of this Agreement shall
be the day after this Agreement has been approved by both the City of Elk River City
Council and the Elk River Municipal Utilities Board of Commissioners.
CITY OF ELK RIVER
Stephanie Klinzing, Mayor
ATTEST:
Tina Allard, City Clerk
ELK RIVER MUNICIPAL UTILITIES
Date Troy Adams, P.E., Director of Operations
.Date John Dietz, Commission Chair
Attachment A
Services to be Provided to the Elk River Municipal Utilities
Water Department by City Public Works Director
- Advise Water Superintendent on all major Utilities Water Department operations
- Supervise the Utilities Water Superintendent, including conducting annual performance
review. The Director of Operations may sit in on the performance review but only as an
observer, not an active participant.
- Make recommendations to Utilities Board of Commissioners on Water Department
matters
- Assist the Water Superintendent with developing short and long range plans for capital,
consumption, expansion, and related water needs
- Assist Utilities with review, development and implementation of Water Department
policies and procedures
- Assist Water Superintendent in preparation, submission and administration of the
annual budget and capital improvement plan for Water Department