NEW ULM — The New Ulm Public Utilities Commission approved a $1,250,476.78 bid from Hooper Corporation for the labor and material for the transmission pole replacement project. This project would resolve the two main issues related to the NUPU transmission system: woodpeckers and deteriorating wishbone structures.

Woodpeckers have damaged the river crossing poles behind the wash plane. This line of poles carries 100% of the city’s energy into the system. Woodpecker damage has been an ongoing issue for the last few years. This project would replace the current wood poles and conductor with steel and eliminate the woodpecker problem.

The wishbone structure along the old Water Street right-of-way carries 77% of New Ulm’s energy into the system, but the poles are over 50 years old. The cross arms and poles are deteriorating and in need of replacement.

Utility Engineer Dan Pirsig said the wishbone poles are beyond life expectancy. The poles damaged by woodpeckers have not reached life expectancy, but these poles are located in a less than ideal location.

Staff is recommending replacing these wood poles with steel poles. The cost of steel is higher than wood, but the steel would negate the woodpecker damage and rotting material in the future.

The project was budgeted for $700,000 which is significantly less than the bids for this project. The bids came in higher than expected. To fund the project, the department will delay the replacement of one $300,000 truck.

Pirsig said the timing of the project is important. A 20-year study indicated a new substation or improvements to the North Side Substation were needed in the next few years. This will be a major expense. The hope is to space out these larger cost projects.

The commissioners unanimously approved the project bid.

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The commission authorized the city manager to accept the proposal from HDR Engineering, Inc., to develop a study of the current market and provide a professional opinion for an energy and capacity market analysis, in the amount of $27,600.

The purpose of this study is to develop an informed opinion on potential cost savings related to energy capacity.

Recently, Heartland Consumer Powers District (HCPD) was able to participate in the re-powering of the Wessington Springs wind farm and has realized savings on their wind supply. HCPD offered New Ulm Public Utilities (NUPU) the chance to share in the savings if the PUC would extend a current 20-year contract another 10 years.

At this point in the contract discussions, a savings of approximately $500,000 per year for the remainder of the initial contract is being offered, with the commitment that NUPU would extend the contract to 2040.

Pirsig said the NUPU wanted to conduct a market study before committing to an extension with HCPD. HDR Engineering would provide an assessment of current contracts as well as the extension and an overview of the potential changes in clean energy requirements in Minnesota. This study will allow the staff and the Commission to make an informed decision on a contract extension.

The market study was unanimously approved by the commission.

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Commissioners authorize the city manager to accept the proposal from Power System Engineering, Inc., to develop plans and specifications, and to acquire and oversee the replacement of the transformer and bus differential electromechanical relays in the South Side Substation for $78,700.

This project is to replace the obsolete electromechanical relays for the bus differential and transformer in the South Side Substation. The current electromechanical relays have limited technicians with the skills to maintain and work on this old technology.

The relays will be replaced with Schweitzer Engineering Laboratories (SEL) relays which allow for greater data collection and easier maintenance.

In the future, the supervisory control and data acquisition (SCADA) system will tie directly into the SEL relays for instantaneous data collection.

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The commission received a report on a boiler operator trainee program. There currently is a shortage of First Class engineers to fill all the positions available in the industry. Due to the existing situation a boiler operator trainee program has been developed.

An applicant would need to obtain a Special Engineer’s license to apply. Once hired, the person would be trained in boiler operations and operating procedures, safety practices, etc. The applicant would be expected to proceed into the relief boiler operator position after obtaining the Second Class A or B license and one year of experience.

Once getting the Second Class A or B license, the utility can apply for a Provisional First Class license from the State of Minnesota and start the employee as a full-time relief or boiler operator.

The goal is to continue to get applicants for this position to progress through training to keep the Power Plant staffed.

Currently, there is one employee with the provisional license. Through this program, the hope is to find competent replacements for the future.

Big Ideas, Inc., in New Ulm was contacted to discuss staffing issues, and an informational video about job opportunities at the Power Plant was created. Big Ideas filmed two videos (one short, one long) that will be uploaded to YouTube, Facebook and the Big Ideas website. This video will also be available for students at local schools.

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The PUC accepted a quote from Schwickert’s TectaAmerica LLC for the wastewater control building boiler replacement for $73,910.

A $33,000 quote from GSM was authorized for the replacement of the flat roof on the east end of the Water Treatment Plant. This roof is 27 years old and has multiple leaks. The project was budgeted at $39,950.