Subd. 1. Establishment. A Public Utilities Commission is hereby established. As hereinafter provided, the Commission shall be responsible for the development, production, purchase and distribution of electricity and such other utility services as the City Council may direct.
Subd. 2. Membership. The Public Utilities Commission shall be composed of five members, each to be appointed by the Mayor and who shall serve staggered three-year terms. All terms shall begin and expire on the second Tuesday in January. Any three shall constitute a quorum.
Subd. 3. Officers and Meetings. The Public Utilities Commission shall, at its first meeting in January of each year, elect from among its members a Chairperson, a Vice-Chairperson and a Secretary. The Commission shall adopt its own rules and procedures with the approval of the Council. The Public Utilities Commission shall meet not less than once each month and at other and further times as may be deemed necessary or at the call of the Chairperson of the Commission. The Commission shall determine the date and time of meetings. The Commission shall keep an accurate record of all the activities of the Commission. The Commission may designate the person as it may desire, either a member or otherwise, as the clerk thereof and he or she shall be responsible for the preparation and keeping of minutes of all meetings. A copy of all such minutes shall be furnished to the Council as soon as reasonably possible after the date of a meeting.
Subd. 4. Compensation. The members of the Public Utilities Commission may be paid at a rate established by resolution of the City Council.
Subd. 5. Powers and Duties. The duties and responsibilities of the Public Utilities Commission are as follows.
A. General Powers. The Commission, subject to the conditions hereinafter expressed, shall have the general supervision of the electric utilities now and hereafter owned by the city and shall be charged with the operation thereof and with power to do any or all acts and things that shall be necessary, convenient or desirable in order to operate, maintain, enlarge, extend, preserve and promote an orderly and economic administration of the electric utility system.
B. Use of Rights-of-Way. The Commission may use the ground over, under or along any road, railroad, highway, street, sidewalk, thoroughfare, alley or waterway in the operation of the Utilities Department, but shall, in all cases and subject to the general regulations of the city, cause the surface of the public way to be restored to its usual condition.
C. Rates and Charges. The Commission shall recommend to the City Council rates and charges to be charged for electricity and other utilities sold and services rendered by the Department. Rates and charges shall be sufficient to pay for all operating and maintenance expenses of utility operations and all bond interest and redemption costs of the utility operations. The Commission may require reasonable deposits as security for the payment of charges for utility services and may provide for the return of the deposits when satisfactory credit has been established.
D. Budgetary Responsibilities. The Commission shall annually, on or before September 1, prepare an annual budget for the operations of the Department and furnish a copy thereof to the City Council for its review and approval as part of the city budgetary process. Upon approval of the budget, the Commission shall have the authority to authorize the payment of the ordinary and necessary expenses of operating the Public Utilities Department prior to approval by the Council, to enter into contracts, leases or other agreements on behalf of the Public Utilities for which the accounting system shows an obligation in an expense budget or encumbrance for the amount of the contract liability; however, the Commission shall not exceed total budgeted expenditures without approval of corresponding budget amendments by the City Council. Notwithstanding the foregoing requirement, excess expenditures related to purchased power contractual obligations shall not require a corresponding budget amendment when there exists other unencumbered balances of appropriations which may be transferred to cover the excess expenditure. Periodically throughout the fiscal year, the Commission shall submit a report to the Council showing the actual revenues and expenditures as compared to the estimates of the approved budget for the Department, and any additional supporting statements or schedules deemed necessary and desirable by the Council to make a clear and informative presentation of the financial position of the Public Utilities.
E. Promotion Expenditures. So long as the expenditure is consistent with the approved annual budget, the Commission may authorize reasonable expenditures to advertise and otherwise promote the use of the services of the Department and to acquaint the public with the operations, programs and planned expansion of the Department.
F. Selection of Superintendent. The Commission shall assist with the selection of the Public Utilities Superintendent in the event of a vacancy and with the concurrence of the City Council fix the salary and other compensation of the Superintendent.
G. Staffing Plan. The Commission shall develop and recommend its adoption by the Council a staffing plan deemed necessary for the administration and operation of the Public Utilities Department. Upon its adoption, the Commission shall have the authority to create such departments and divisions for the administration of the affairs of the Department as it may deem necessary and from time to time alter their duties and organization and to hire all departmental employees in a manner consistent with the approved staffing plan.
H. Pay Plan. The Commission shall develop and recommend its adoption by the Council a pay plan for all public utilities employees. Upon its adoption, the Commission shall have the authority to set the wages and salaries of all employees of the Department in a manner consistent with the approved pay plan.
I. Bylaws and Rules. To adopt bylaws and rules for the conduct of its affairs including the election, assumption of duties and definition of responsibilities of officers and committees, with such rules and bylaws being subject to the approval of the Council.
J. Surplus Funds. To invest surplus funds of the Electric Utilities Fund in a manner consistent with existing city investment policies. The Commission shall periodically submit a report to the City Council in such form or format, along with any additional supporting statements or schedules, deemed necessary and desirable to make a clear and informative presentation of its investment decisions.
K. Imprest Fund. To establish an imprest fund, not to exceed $1,000 per month, for the payment of the expenses in cash for any proper claim against the public utilities which is impractical to pay in any other manner except that no claim for salary of any employee shall be made from the accounts.
L. Accounts Receivable Policy. To develop and recommend its adoption by the Council a delinquent and uncollectible accounts receivable policy. Upon its adoption by the Council, the Commission shall have the power to implement such a policy, including the write-offs of uncollectible accounts.
Subd. 6. Approval of Claims and Disbursements. Except for payroll and contracts authorized by the Council, no money shall be drawn from the Electric Utilities Fund nor shall any obligation for the expenditure of money be incurred except as authorized herein.
A. Preparation of Claims List. Before any city disbursement may be drawn and issued for payment of claims, bills, invoices and other demands or obligations payable from the Public Utilities Fund, except for payroll and contracts authorized by the Council, the Public Utilities Superintendent or by some other employee to be designated by him or her, shall audit and examine all claims or other requests for payment presented against the public utilities for payment after the same have been examined and approved by the appropriate administrative official or department head. If he or she concurs in the finding that a claim is due and owing, and if funds are available, he or she may authorize payment of the same. The Public Utilities Superintendent shall thereafter prepare a list of disbursements to be presented for approval by the Public Utilities Commission, who may authorize payment prior to City Council approval.
B. Action by the Council. At least monthly, the Public Utilities Superintendent will present to the Council for ratification a register of payments listing all disbursements that have been made since the previously ratified register of payments. In the event a demand or claim is made against the Public Utilities which is not included within the current annual budget, the Public Utilities Superintendent shall present the individual requested disbursement, accompanied by invoice and explanation, to the Council for individual Council approval. If, upon review, the City Council disapproves any claims previously paid, the City Administrator and the Mayor shall jointly cause the disapproved claims to be recognized as receivables of the city and pursue collection diligently until the amounts disapproved are collected or until the Council is satisfied and approves the claims. Nothing in this section shall restrict the Council's right and privilege to review any specific demand or claim, warrant or invoice or other financial records which are part of the public utilities's official business records.
Subd. 7. Selection of Professional Consultants. The provisions of this section shall be followed whenever the Public Utilities Department requires the services of a professional consultant. For the purposes of this subdivision, a "professional consultant" means any individual, organization, firm, group, association, corporation, partnership, joint venture or combination thereof that provides professional services.
A. Consultant Selection. The Commission shall select a consultant for recommendation to the Council for approval after discussions with one or more professional consultants regarding the scope and purpose of the proposed project. The selection of the professional consultant shall be based upon criteria adopted by the Commission. The criteria shall generally include consideration of the consultant's experience, capability, reputation, familiarity with the type of project, quality of work, budget control ability, existing workload, professional credentials and upon the intuitive opinion of the interview(s).
B. City Council Action. The Commission shall submit its recommendation along with a negotiated consulting agreement for the professional consultant's compensation to the City Council. The City Council shall accept or reject the Commission's recommendation. If accepted, the Council shall authorize the Public Utilities Superintendent and Commission Chairperson to enter into and execute the consulting agreement on behalf of the city. If the Council rejects the Commission's recommendation, negotiations with that consultant shall be terminated and the Council may direct the Commission to recommend another consultant.
Subd. 8. Contracts. The term "contract" means any agreement creating a legal relationship between the city and another person or entity or any amendment thereto.
A. Authorization by City Council Required. Except as otherwise provided herein, any contract intended for the purchase, lease or rental of supplies, material, equipment or services, must be in writing and authorized by the City Council before becoming effective and binding upon the city.
B. Authorization by City Council Not Required. The Public Utilities Commission shall be authorized to enter into and execute on behalf of the city the following contracts without individual approval of each contract by the City Council, so long as the contract is consistent with the approved annual budget for the Public Utilities Department, and the Public Utilities Department's liability under the contract does not exceed available fund balances:
1. Contracts for purchase of goods, supplies, materials, postage or equipment;
2. Lease agreements for materials, supplies and equipment;
3. Maintenance contracts;
4. Sale of unneeded property which has been certified for disposition, with such sale or disposition to be made in the best interest of the city;
5. Other routine agreements where no expenditure is involved;
6. Emergency contracts. The term "emergency" means a set of unforeseen circumstances that either:
a. Presents a real, immediate threat to the proper performance of essential functions; or
b. May result in material loss or damage to property, bodily injury or loss of life if immediate action is not taken. The Public Utilities Superintendent shall promptly provide to the City Council a copy of any such contract.
7. Contracts of a "continuing nature" for the operation of programs and services approved in the annual budget or for a schedule of payments, including, but not limited to, multiple-year personal service contracts which have been expressly approved by the City Council do not require subsequent annual approvals; provided that, the contract is listed specifically as a line item in the annual budget.
C. Authority to Sign Contracts. All contracts which do not require prior authorization by the Council pursuant to Subd. 8.B.7. above shall be executed on behalf of the Public Utilities Department by the Commission Chairperson and the Public Utilities Superintendent.
(Ord. 54, Third Series, passed 12-5-2000)