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HomeMy WebLinkAbout11132023 Seward Electric Department Work Session Presentation Seward Electric Department N EHT STEPS AGENDA • Where we are • Where we need to be • How to get there W HERE WE A RE Miss ion: To make life better in the communities .� we serve through the safe and reliable delivery ' of competitively priced electricity. _rQ. Seward Electric utility is small, with less than _ 3,000 customers. We sell over 54 million h kilowatt hours a year to a wide variety of customers, including 3 industrial. In October 2023 , a ballot measure to sell the utility to Homer Electric failed. A referendum �— petition was also submitted, leading council to repeal the resolution to place the issue on the ballot effectively barring any utility sale from M the ballot for two years . •_ r � -M STAFFING Our current organizational chart is below. Two of the positions have been vacant for several months. General Manager Executive Assistant Power Ops Supervisor =Field Eng. t Ops (2) Linemen ( STAFFING Staffing and wages has been an ongoing issue with the Electric Department and the Finance Department with wages for non -union positions that are not competitive with the state. ( Finance manages utility billing) Electric General Manager Currently, the utility is managed through a services contract with Rob Montgomery that expires on Dec. 31, 2023. The job has been posted since July 18, 2023 with a Grade 12A salary at $39.86/hr or $79,720/year. Operations Supervisor The Operations Supervisor position has been vacant and posted since July 18, 2023 with a grade of 11A salary at $37.08 or $74,160 Bothjobs are posted on the city webpage, Facebook, State of Alaska job site and governmentjobs.com.We have not received any applicants in this time. For reference, Copper Valley Electric Authority serves just over 4,000 meters and their GM makes a base salary of $222,850/year while their Chief Plant Operator makes $ 150,066 base as of 2021. (As a nonprofit, all executive salaries for CVEA are available online via propublica.org.) Finance & Utility Billing The Finance Department manages the utility billing.A second utility desk position was vacant for the better part of three years before being unfunded to support the UtiliAssist contract to outsource billing.While the outsourcing onboarding has been going well, the workload in Finance for the billing is still high. STAFFING In addition to current positions, there is an ongoing need to create more positions to meet the growing demands on the utilit y and to provide better service. Below is a rough idea of what the Seward Electric Department's organizational chart could look like with all recommended positions added. Reminder,this is just a draft. General Manager Executive Assistant System Operations Manager Business Operations Manager Plant Ops Linemen (+1} Field Eng. G abilit Gov't Relation/Comms Cyber/Reliy Addition of 1 lineman Could be outsourced NEEDS 01 OV11 OV11 Administrative Operational Cybersecurity With the completion of Rob We're currently in good shape with Through Senate Bill 123,Alaska electric utilities will be mandated to meet Montgomery's contract on our lineman, plant operators, and future reliability and cybersecurity standards as developed through a newly 12/31/23,the city will need to fill field engineer staffing levels but formed Electric Reliability Organization (ERO).The effort to build the ERO and that role which includes drafting the Operations Manager position is outline these important standards began in 2019 and has been managed resolutions, customer relations and vacant and responsible for through the Railbelt Reliability Council (RRC). complaint resolution, • customer hookups/disconnects communications, HR activities, • power restoration In addition to developing reliability and cybersecurity standards,the RRC has power supply negotiations, budget • system upgrades/maintenance worked to identify needed expertise for positions to be created within the development, and more.This also • ROW clearing ERO and establish bylaws and other operating guidelines for the ERO and its includes having a strong voice in • inventory management board of directors.The RRC is currently seeking a CEO for the ERO as well as Railbelt issues and efforts. • permit oversight other key positions.The staffing of the ERO is expected to be completed in • Locates 2024, at which time the ERO will become fully functional. • Training • Safety HOW DO W E GET THERE ? Consulting contract with Matanuska Electric Association About MEA • Matanuska Electric Association, Inc., Alaska's oldest existing and second-largest electric cooperative, is owned and operated by its 55 ,600 members. MEA's service area covers more than 4,700 miles of power lines in Southcentral Alaska. • Mission: To provide safe reliable energy at reasonable rates with exceptional member service and commitment to the community we serve. HOW DO W E GET THERE ? Consulting contract with Matanuska Electric Association • A one-year contract with the option to extend for up to three years • Covers the management of management of Seward Electric • Gives us time to restructure and recruit positions, retool our utility • Budget for new positions would finance MEA contract Why MEA? • MEA is a non-profit co -op (management at cost) • Did not express interest in purchasing out utility • Familiar with Alaska and railbelt operations • They've done this for other utilities in the past - tenant of cooperative WHAT ' S NEXT ? Begin discussing contracts with MEA to bring before council for approval. • Guidance?