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6.1.A. ERMUSR 04-15-2015 Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager John Dietz—Chair Al Nadeau—Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: April 14, 2015 6.1a SUBJECT: Staff Updates—General Manager DISCUSSION: • This month in the history of Elk River Municipal Utilities: On April 11, 1944, Elk River holds special election to buy electric utility. #acenturyofservice Voters of Elk River Favor Public Owned Electric System, Authorized Council to go Into Power and Light Business at Special Election Tuesday The voters of Elk River decided in favor of a municipally owned electric light business, and have authorized the village council to take necessary steps for acquiring the local distribution line and possibly the power plant. Less that have the qualified voters of Elk River exercised their right to express their opinion in the matter at the special election Tuesday, a total of 269 ballots being cast, 195 in favor of the proposition and 74 against. This was more than the necessary two thirds required to carry the proposition. Just what the next step of acquiring the local system will be is not known, and is left with the village council. It is believed most of the voters favor the acquisition of the distribution system alone, if possible and the purchase of electricity on the line from Northern States of the REA. The bond issue is set for a total of$70,000, which is believed large enough to acquire the complete power plant and distribution system if necessary and to make the necessary improvements in the system and the hydro power dam to maintain the plant and the level of Lake Orono. It is understood the REA would still like to negotiate for the purchase of the hydro- plant for use as an auxiliary for its lines and would then be in a position to furnish Elk River with current on the line when the village takes over the distribution system. The REA would also be able to negotiate to take over the Zimmerman and Dayton franchises. UN Page P O w E 0 E 0 0 1 age l of 4 NATURE Reliable Public Power Provider POWERED To SEavE 138 Mass Meeting Held Monday The mass meeting called for Monday night to discuss the issues involved in the special election was well attended, about 100 citizens being present. The meeting was conducted by Glenn Davidson, Mayor. The proposition before the people was explained in an able and thorough manner by R. K. Wilson, chairman of the civic affairs committee of the Commercial Club. He pointed out the need for the village to take some action at once and urged the voters to give the village council a vote of confidence so that it may go ahead and make the best kind of a deal possible. Mayor Davidson read and answered the circular sent out Monday by the local power company, and Leo Scherf, who was formerly on the power commission at Ada, Minn., pointed out the advantages of a municipally owned distribution system in that town. Mr. Richardson,power engineer employed by the village council, gave his figures on the actual value of the local power plant and distribution system and the necessity for improvements to the dam, the power plant and the distribution system. The meeting was afterwards turned into a round table discussion of the present situation and questions were asked and answered, bringing out the advantages of the municipally owned system. —Sherburne County Star News, April 11, 1944 • The Board of Directors of the Minnesota Municipal Power Agency(MMPA)met on March 24, 2015. At the meeting,the Agency approved a 78 MW wind energy purchase agreement with Black Oak Wind, LLC. Upon the successful completion of this project, MMPA would either own or have under contract renewable resources sufficient to meet nearly all of its requirement to have 25% of its total 2025 energy supply come from renewable sources. The Board also received an update on the Agency's 2015 Energy Education program, which is expected to reach over 2,500 fourth grade students from more than 30 schools in all twelve MMPA member communities. The Board also approved the installation of a solar energy facility at its Faribault Energy Park plant. The Board also continued its planning discussions focused on renewable energy. • On April 6, I chaired the MMUA Solar/DG Task Force meeting in Plymouth, MN. Tom Sagstetter is also participating in the task force with me. The task force is working to develop the municipal approach to solar. The areas of focus include: Education; Development of model ordinance, interconnection agreement, and standard technical requirements; Demonstration projects,project costs, and project production data; and Rate design. • I am attending the Connexus Energy Annual Meeting the morning of April 14. Y C Page 2 of 4 Ii .tii1 Reliable Public Power Provider P O V W E K E D T O S V E 139 • We have had significant time invested into personnel over the past month which leads to a lot of human resources time in the upcoming month: • Interviews for the vacant Water Operator position were held on April 8. • The Plant Operator/Mechanic position is currently vacant. That position's essential job duties include responsibility for the operation and maintenance of the diesel engines/generators as well as operation and maintenance of the Lake Orono Dam as ERMU's designated dam tender. Another essential function of this position includes working as a bore rig operator and assisting the Lead Bore Rig operator with installation of underground cable. Over the past years, we have implemented cross training for the operation of the diesel engines/generators and the operation of the dam. It is unlikely in the current EPA climate that our diesel power plant will operate as anything but emergency reserve. Because of this, the cross training that we had done has provided the depth we need to operate those engines in an emergency. Also, assistance in operation of the bore rig and frost trenching have become substantially more that 50%of this positions normal duties. This has led us to post for a Bore Rig Operator to fill the vacant Plant Operator/Mechanic position. By focusing on the primary essential function of operating a bore rig, we hope to hire a highly experienced operator to help with the upcoming electric service territory acquisition. For major maintenance or repairs of the diesel engines/generators, we would contract with specialists. This posting was expedited due to critical schedule of labor relating to the underground feeder project that has started ramping up. This project is bringing a feeder from the Waco Substation located at Zebulon Street and Co Rd 35 to the Sherburne County Government Center. The Bore Rig Operator position rates at a paygrade step 6, which is a lower hourly wage than a Plant Operator/Mechanic position which rates at a paygrade step 8. This is an approximate $12,000 annual difference. • Interviews for the vacant Customer Service Representative and Purchasing Specialist positions will be conducted in April. • Posting for the vacated Lineworker position will be open through April 24. This position has been open since Lead Lineworker Ed Zurn left in fall of 2014. This vacancy was held open until the next class of lineworker schools graduated. This vacant position will be filled with an entry level apprentice lineworker and not a journeyman lineworker in a Lead Lineworker position. • We have posted the Technical Services Superintendent position which will be vacated at the end of June with Wade Lovelette's upcoming retirement. This was budgeted for a 6 month overlap with Wade, which is not going to happen. We are looking to hire as soon as possible to maximize the overlap. Prior to Wade being in this position, this • Y 111 Page 3 of IPOIVER.ED NA °U E Reliable Public Power Provider P O W E R E D T O S E R V E 140 position's minimum job requirements included an engineering degree or equivalent experience. We have added this requirement back into the job description. Depending on the experience of the candidate selected, we will re-evaluate what expertise is needed for the budgeted addition of a Field Engineer. It is likely that the Field Engineer position will then evolve with essential functions shifting towards web based mapping. This position's hire would be delayed until the new Technical Services Superintendent is assimilated into ERMU and can help assess the department needs. • Page 4 of 4 r0-111EFIED D 1 ATURE Reliable Public Power Provider P O W E R E D T o S E R V E 141