5.1 ERMUSR 03-13-2017 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:
March 13, 2017 5.1
SUBJECT:
Organizational Growth
DISCUSSION:
With the recent resignation of our Technical Services Superintendent,the leadership team and
staff have been working to develop a transition plan to cover responsibilities until that position
can be filled. We have historically run lean. This management position vacancy has exposed
weaknesses in our organizational structure. This is especially true with the highly significant
initiatives currently in process including: migration from Great River Energy(GRE)to
Minnesota Municipal Power Agency(MMPA) for wholesale power, electric service territory
acquisition growing the electric customer base by 20%over a five year period, and the
construction of a new 69kV/12.47kV Substation. In addition, ERMU is preparing for record
organic growth following over five years of minimal growth. Looking towards 2020 when
ERMU will have completed the electric service territory acquisition plan, it is anticipated that
there could be multiple retirements from leadership roles within the organization. It is critical
that ERMU begin to plan for this growth and retirements. There are likely short term actions that
will need to be taken as well as long term strategic planning.
During the February 23 leadership team introduction meeting held for ERMU's new
Commissioners, this issue came to the surface. Frustrations among the leadership team were
evident. Staffing levels are not where they need to be today in a few critical areas. Staff and
management have consistently done what it takes to get the job done and cover for areas of
inadequate resources. The underlying issues are not only staffing levels, but also compensation.
There are critical positions within ERMU that need to be addressed in the short term in order to
be competitive and retain current employees and incentivize employees to seek development and
promotion opportunities. And both staffing levels and the compensation plan need to be
addressed with a strategic view of the future.
ACTION REQUESTED:
Staff recommends conducting a review of the organizational structure, organization staffing
levels, and compensation plan.
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