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6.1.a. ERMUSR 02-09-2016 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: February 9, 2016 6.1a SUBJECT: Staff Updates—General Manager DISCUSSION: • The Board of Directors of the Minnesota Municipal Power Agency(MMPA)met on January 26, 2016 in Shakopee, Minnesota. At the meeting,the Board reviewed 2015 performance. Actual rates for 2015 were 3% lower than budget. The Board approved an updated investment policy for MMPA which expanded the list of permissible investments to explicitly include qualifying commercial paper and bankers acceptances. The Minnesota Pollution Control Agency issued an environmental assessment worksheet and a finding that no environmental impact statement is needed for MMPA's 46 Megawatt Shakopee distributed generation project. The 8 MW Buffalo solar project has applied to Wright County for a conditional use permit. • The MMUA Legislative Rally in St. Paul is scheduled for Tuesday, April 19. There will be the day at the capitol followed by a reception for the legislators. This event was changed from a Thursday to a Tuesday this year to help improve legislator attendance. If any of the Commissioners are interested in attending,please let me know as soon as possible. • This last month management held an internal planning session to discuss long term strategy, leadership development, and processes to manage larger projects encompassing multiple departments in a more efficient manner. With multiple retirements from the management team and the added management team positions over the past few years, this was an ideal time to"build the team."This is important to establish before we continue to grow through electric service territory transfer and organic growth. P~D / EDED BY ® Page 1 of 2 NATURE Reliable Public Power Provider P OWERED T O S ERV E 124 One of the goals was to align our internal processes to provide clear line of sight from our mission statement to task. In other words,we worked to define and focus how our multiple services align to provide value through quality of life utility services to our community. Another goal was to establish criteria on how to prioritize projects for our 5 year capital projects projections and determine when projects are presented for Commission approval through the budgeting process. These criteria will help to quantify and objectify the process of prioritization. We also are looking to develop large project management processes to improve efficiency in the sharing of information and coordination between multiple departments. Examples of when this project management methodology would prove beneficial are for projects like our recent billing/accounting software conversion and the electric service territory transfer. We are excited to focus on development and value. As these processes are developed, they will be integrated into the way we work day to day. And to be clear, we are not adding work but rather refining the methods of how we communicate, document, prioritize, and evaluate existing work. And,therefore, this is not adding cost to the day to day operation of the Utilities. This should create an opportunity for all staff to grow professionally with an end goal of providing higher value of services to our community. As ERMU grows, so does the value we can provide to the community. E7 IiiIüii Page2of2 E Reliable Public Power Provider POWERED T o SERVE 125