5.4 ERMUSR 05-09-2017 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Troy Adams, P.E. —General Manager
MEETING DATE: AGENDA ITEM NUMBER:
May 9, 2017 5.4
SUBJECT:
Wage & Benefits Committee Update and Locator Position
ACTION REQUESTED:
Approve the addition of a second locator.
BACKGROUND:
The Wage & Benefits Committee (W&BC) was created to help the Commission develop and
maintain a pay plan structure and benefits package. The W&BC also helps the Commission with
succession planning and to review pay equity compliance. The W&BC evaluates and
recommends to the Commission. The W&BC does not have the authority to act without prior
Commission delegation of authority.
The W&BC presented staffing recommendations to the Commission at the April meeting. These
recommendations were approved by the Commission for immediate implementation.
DISCUSSION:
Here is an update on the W&BC action items approved by the Commission in April:
1. Hire two Lineworkers—These openings were posted with a closing date of Friday April 28.
Staff has reviewed the applications and interviews have been scheduled for the week of May
15. It is anticipated that these two hires will start in June. And as expected, one of our
Foremen has given formal notice to retire on June 26. His position will be backfilled
internally and result in some cascading internal promotions. So as planned, one of these two
new hire lineworks will be replenishing the resulting vacancy from this retirement. The
second will be an additional employee.
2. Change the Meter Reader position from part time to full time—This was implemented on
May 1.
3. Re-evaluate the Key Accounts Specialist position prior filling the vacancy— Staff has held a
number of meetings to strategize options on transitioning our load management conservation
programs to not require the use of"load control" appliance switching. Staff is working with
our rate consultant to vet the options we have developed. These will be presented to the
Commission at a future date. The intention is to have new conservation program options
approved by the Commission prior to the scheduled September electric service territory
transfer from Connexus Energy. This deadline also sets the schedule for the backfilling of the
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Key Accounts Specialist. This position will need to be filled prior to the service territory
transfer to help with the meter data and account analysis of the 450 customers being
transferred.
Related, but not an action item resulting W&BC recommendation was filling the vacant
Technical Service Superintendent position. This position was filled on April 28.
As discussed during the Commission meeting,these changes, because of the natural delay in
hiring, will result in a nearly net zero impact to the 2017 budget.
One additional item discussed during the W&BC meeting, and subsequently in the update to the
Commission, was the needed addition of a second locator. As stated at the April Commission
meeting, in 2009 ERMU had two full time locators. During the recession, one of the locators
applied for an internal promotion and became a Meter Technician. That second locator position
was not backfilled at that time. With the addition of the electric service territory transfers from
Connexus Energy and the recovery of the economy, the number of locates has increased. The
change in the Meter Reader position from part time to full time was intended to temporarily
create some internal relief so the Electric Technicians could provide backup support to the
Locator.
It was my recommendation, and that of the W&BC, to wait and see how this worked. One month
later, it is clear that this will not work. We currently have ERMU's one full time locator working
overtime. In addition, we have one Electric Technician working full time with overtime as a
locator. And, we have a second Electric Technician and water operators helping with locating.
Geographical coverage and the number of meets have played into the need for additional people
locating. This will not be sustainable. The upcoming meter work related to the electric service
territory transfer in September will require all of the Electric Technicians assistance. We do not
anticipate the number of locates to decrease enough prior to the transfer for staff to cover the
workload.
It is recommended that ERMU add a second locator position effective immediately.
FINANCIAL IMPACT:
The addition of a second locator position will have negative impact to the 2017 budget of
approximately $60,000 for wages and benefits. It is intended to fund this unbudgeted expense
through the significant above budget connection fees being recognized in 2017. Alternatively,
this could be funded from reserves for the remainder of 2017. This position would be
incorporated in the 2018 budget along with the additional Lineworker and the change is
employment status of the Meter Reader position.
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