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��i <br />Elk River <br />Municipal Utilities UTILITIES COMMISSION MEETING <br />TO: <br />FROM: <br />ERMU Commission <br />Mark Hanson — General Manager <br />MEETING DATE: <br />AGENDA ITEM NUMBER: <br />January 9, 2024 <br />5.2 <br />SUBJECT: <br />ERMU Clothing Allowance Update <br />ACTION REQUESTED: <br />Approve the new clothing allowance amount of $120 <br />BACKGROUND: <br />At the November 2023 commission meeting, the Commission directed staff to review the <br />clothing allowance program for potential adjustment. The employee handbook states: "For <br />Commissioners and employees other than regular field workers, the Utilities will provide a $75 <br />annual allowance for Utilities logo clothing." The $75 amount has been in place since the <br />clothing allowance program was implemented in August 2014. <br />DISCUSSION: <br />Staff reviewed employees' clothing expenditures beyond the allowance over the past several <br />years to determine a reasonable adjustment. Purchase records since 2020 show the average <br />personal expense paid by employees and commissioners is $22.35. In actuality, this translates <br />to roughly half the people paying $35-$50 out of pocket while others purchased right at the <br />allowance limit or slightly over. <br />Feedback received is that the current allowance only provides for the purchase of a single name <br />brand item (perceived as more durable). Setting the allowance at $120 would be sufficient to <br />provide two average items (such as a dress shirt or vest) or one larger item (such as a jacket). As <br />such, it is recommended that the clothing allowance be increased to $120. <br />Page 1 of 1 <br />72 <br />