Orrville Utilities ORRVILLE UTILITIES 2O18. Annual Report

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1 Orrville Utilities ORRVILLE UTILITIES 2O18 Annual Report

2 Table of Contents Mission Statement...2 Mayor s Message...3 The Orrville Utilities Board...4 Director s Message...5 Electric Utility Department...6 Water Utility Department...9 Wastewater Utility Department...11 Technical Services...13 Utility Directory...Back Cover Orrville Utilities Annual Report

Mission Statement The Mission of the Department of Public Utilities Provide quality services in a timely and efficient manner to ensure Orrville continues to be an exceptional Community.

3 Mission Statement The Mission of the Department of Public Utilities Provide quality services in a timely and efficient manner to ensure Orrville continues to be an exceptional Community. To fulfill this mission, the City of Orrville is committed to: Attain the highest level of customer service. Achieve quality growth through economic development. Plan for the future needs of the Community. Ensure a safe work environment. Promote teamwork. Provide training, education, and recognition of employees. Maintain a responsible workforce. Public Power Benefits Our Community Citizens of this community receive electricity from a public power electric utility. What does that mean for you? Not-for-profit rates - Our utility works to provide essential electric service efficiently and at a reasonable cost to you. Local control - Through your elected officials and in public meetings, you have a voice in your utility s operations. Community ownership - Our electric system belongs to every citizen of our community, not to private owners. Orrville Utilities Annual Report

Mayor s Message Dave Handwerk, Mayor Dear Citizens of Orrville, 2018 was a busy year in Orrville, especially during the warm construction months. We had plenty of street improvement projects.

4 Mayor s Message Dave Handwerk, Mayor Dear Citizens of Orrville, 2018 was a busy year in Orrville, especially during the warm construction months. We had plenty of street improvement projects. On the City side, the Main Street resurfacing and concrete repair was by far the biggest job. This project got started a little later than planned so it did not all get finished. The downtown portion and south end of Main Street is complete. The north end will receive one more layer of asphalt in the spring when the weather breaks. Asphalt overlay was completed on South Walnut, East Paradise and East Chestnut and some other spot repairs were done around town. On the Utility side, a new water line construction job was started in late fall on West High Street from Crownhill Road to Main Street. This work will continue on through the winter of 2019 and in the summer High Street will be resurfaced. The Electric Distribution Department had to deal with summer storms and winter storms and both brought trees and power lines down. New Year s Eve and New Year s Day were spent restoring power and removing trees that had fallen under high winds. The heavy rains that came with the storms can also cause issues at the Wastewater plant. However, these are issues that generally happen every year and our City and Utility employees are always ready to take on each and every challenge. They are also ready to keep your electric on and your water and wastewater flowing. I hope you all have a safe healthy 2019, Dave Handwerk Mayor Dave Handwerk Orrville Utilities Annual Report

Public Utilities Board Michele Abel, President Russell Miller, Vice President Don McFarlin The Public Utilities Board was established

The five member board is appointed by the Mayor and serves a five year term with an optional second and third term.

abreast of critical utility issues. Many small communities throughout the state operate under this form of government.

5 Public Utilities Board Michele Abel, President Russell Miller, Vice President Don McFarlin The Public Utilities Board was established to act as the governing body in respect to developing rules and regulations for the operation of Orrville Utilities. The five member board is appointed by the Mayor and serves a five year term with an optional second and third term. Each member works very closely with the utility management team on providing the people and businesses of Orrville with exceptional service at a very low cost. The Board also maintains a strong communication link with City Council in recommending major utility expenditures and keeping council abreast of critical utility issues. Many small communities throughout the state operate under this form of government. It allows the City and Utilities to be flexible and responsive when dealing with issues confronting the Electric, Water, and Wastewater Utilities. Officers: President: Michele Abel Vice President: Russell Miller Committees: Finance/Policy: Michele Able (Chairperson) and Steve Combs Electric: Don McFarlin (Chairperson) and Paul Vance Personnel: Steve Combs (Chairperson) and Russell Miller Water: Russell Miller (Chairperson) and Michele Abel Wastewater: Paul Vance (Chairperson) and Don McFarlin Paul Vance Steve Combs Orrville Utilities Annual Report

Director s Message Jeff Brediger, Director of Utilities Dear Customers of Orrville Utilities, All Utilities again ended the year financially strong and well positioned to address the coming years.

6 Director s Message Jeff Brediger, Director of Utilities Dear Customers of Orrville Utilities, All Utilities again ended the year financially strong and well positioned to address the coming years. We continue to focus our attention on promoting economic development, investing in utility infrastructure, providing competitive services and strengthening relationships with all of our customers. The Power Plant successfully fulfilled its new role operating during peak periods. Our ability to generate at full capacity during crucial times off-set $7M of the $8.4M in transmission fees that continue to escalate annually. We are required to pay the owners and operators of the grid, which we are more dependent on since the changes imposed by the EPA in 2017, to bring in the energy from our projects. The Power Plant generated 9% of the energy (57% less than last year), Fremont gas plant 39%, 24% was purchased from the market, Prairie St. 12%, hydro projects 14%, 1% from the Blue Creek wind project and 1% from the two new solar sites. By the end of 2019, about 20% of our energy will come from renewables. We will continue to evaluate existing generation resources and explore new generation and power purchase agreements to meet your long-term needs. We will begin work on a second transmission tie to the grid to enhance reliability. The Water & Wastewater utilities continued to meet EPA requirements and we are positioned to provide quality service while investing in the future. We will complete the replacement of the water main on High St., refurbish the west water tower and begin upgrades to the Wastewater plant to handle high flow events with the goal of reducing back-ups. Orrville Utilities will continue to provide our community with reliable, exceptional services that are timely, environmentally responsible and competitively priced. We re glad to be part of the continuing success that makes living and doing business in Orrville so beneficial. It is our pleasure to serve you as we work to improve our community and businesses. Sincerely, Jeff Brediger Jeff Brediger Orrville Utilities Annual Report

Electric Utility Department Dean Kallenborn Electric Utility Manager Dick Smith Distribution Superintendent This year has been a continuation of transitioning from a baseload plant to a peak shaving

7 Electric Utility Department Dean Kallenborn Electric Utility Manager Dick Smith Distribution Superintendent This year has been a continuation of transitioning from a baseload plant to a peak shaving facility. The plant was brought from cold stand-by to on line loaded conditions dozens of times throughout the year without incident to plant personnel or equipment. The starts were for a variety of reasons; training, testing, equipment freeze prevention, transformer maintenance, and peak shaving operation. The peak shaving operation has saved the utility customers millions of dollars this past year in PJM Capacity and AEP Transmission costs. All of the high demand peaks that occurred during the year were successfully met by plant operations. All seven power plant maintenance workers that had job changes to power plant Technicians were trained, and passed their testing for Stationary Steam Engineers licenses issued by the State of Ohio. Units #10 and #11 had scheduled five year Generator electrical testing and visual inspections completed this year. Preliminary engineering and purchase of new voltage control units for these two generators was completed with anticipated installation to take place in the spring of The three coal units were tested and passed particulate permit limits in the fall; the natural gas unit was tested and passed its permitted NOx limit in the spring. Two solar fields went into commercial operation early in the year without incident. Projects completed in 2018: Work force development and transitioning. Commercial Operation of Solar fields. Emissions tests were successfully completed on all four combustion boilers. Transformer T1 tap changer oil filtering and visual inspection. Upcoming projects in 2019: Continuation of work force development. Voltage control replacement on electrical Generators. Continued evaluation of 2nd tie-point, base load projects and peaking projects. Orrville Utilities Annual Report

8 Electric Utility Department Dean Kallenborn Electric Utility Manager Dick Smith Distribution Superintendent Electric Utility Department Operating Income and Expense Report 3 - Year Summary Description Electric Utility Operating Revenue $33,659,500 $35,209,681 $35,744,435 Electric Utility Operating Expenses Administrative and General Payroll $821,861 $860,250 $783,244 Technical Services Payroll $515,158 $589,730 $526,980 Production - Operational Payroll $1,211,229 $1,760,172 $1,804,238 Production - Maintenance Payroll $1,276,486 $1,118,172 $1,304,731 Distribution - Maintenance Payroll $1,067,250 $1,081,387 $984,225 Other Administrative and General $522,625 $347,183 $370,447 Other Production - Operational $546,938 $736,458 $1,720,569 Purchased Power $20,279,344 $17,730,269 $12,603,063 Coal $864,110 $1,438,459 $6,539,541 Natural Gas $1,205,735 $2,570,167 $336,381 Other Production - Maintenance $509,178 $955,246 $2,323,507 Other Distribution - Maintenance $499,756 $475,199 $358,136 Total Operating Expenses $29,319,670 $29,662,692 $29,655,062 Debt Service $0 $0 $0 Transfers $5,676,305 $3,324,863 $6,568,729 Orrville Utilities Annual Report

Electric Utility Department Dean Kallenborn Electric Utility Manager Dick Smith Distribution Superintendent Fund Cash Balances Electric Utility Department Operating Statistics Report 3 - Year Summary

9 Electric Utility Department Dean Kallenborn Electric Utility Manager Dick Smith Distribution Superintendent Fund Cash Balances Electric Utility Department Operating Statistics Report 3 - Year Summary Description System Sales (retail), kwh 308,865, ,439, ,918,354 Total Revenues $34,453,100 $41,806,046 $42,427,041 Gross Generation, kwh 34,960,226 89,313, ,052,875 Wholesale Sales, kwh 32,480,000 74,135, ,600,000 Wholesale Revenues $2,062,090 $2,315,444 $4,278,258 Total Expenses $35,344,523 $36,745,749 $38,011,858 Revenue $7,623,667 $16,354,040 $9,460,410 Replacement and Improvement $2,938,463 $2,913,372 $2,883,645 Utility Reserve $30,252,997 $25,348,385 $20,077,457 Total Fund Balance $40,815,127 $44,615,797 $32,936,619 Transfer of Surplus $5,676,305 $3,324,863 $6,568,729 Coal Burned, tons 9,299 16, ,136 Natural Gas Burned, MCF 247, , ,390 Peak System Demand, kw 63,060 58,860 59,560 Orrville Utilities Annual Report

10 Water Utility Department Todd Fetty Superintendent The Orrville Water Department treated an average of 1.5 million gallons of water per day in The department continues to produce a high quality of water while meeting or exceeding all EPA requirements. The Orrville water system has approximately 3,200 residential services and 350 commercial and industrial customers. The major focus for the upcoming year will be to maintain production requirements. Projects completed in 2018: Distribution system upgrades: - Upgraded the service lines and taps on various streets around town. - Replaced water mains and valves on Main Street. - Eliminated an old water main on Crownhill Road. - Started the W. High Street Water Line Replacement Project. Ongoing preventative maintenance programs including: - Roadway valve maintenance. - Water meter maintenance. - Fire hydrant maintenance. - Distribution system flushing. Upcoming projects in 2019: Ongoing preventative maintenance programs including: - Distribution system flushing. - Roadway valve maintenance. - Water meter maintenance. - Fire hydrant maintenance. Continue with the distribution system upgrade program. Clean and recondition three production wells. Finish replacing the water main on W. High Street from Main St. to Crownhill Rd. Paint the West Water Tower. Had three of our production wells cleaned and rebuilt the pumps and motors. Replaced the Carbon Dioxide feeders at the water plant. Orrville Utilities Annual Report

Water Utility Department Todd Fetty Superintendent Water Utility Department Operating Income and Expense Report 3 - Year Summary Description 2018 2017 2016 Water Utility Operating Revenue $3,267,950

11 Water Utility Department Todd Fetty Superintendent Water Utility Department Operating Income and Expense Report 3 - Year Summary Description Water Utility Operating Revenue $3,267,950 $2,968,178 $3,346,504 Water Utility Operating Expenses Administrative and General Payroll $323,118 $320,857 $301,821 Production - Operational Payroll $384,219 $376,889 $420,854 Production - Maintenance Payroll $168,214 $166,742 $169,695 Distribution - Maintenance Payroll $174,396 $156,987 $165,698 Other Administrative and General $114,756 $119,249 $99,659 Other Production - Operational $495,644 $450,561 $625,811 Other Production - Maintenance $75,973 $37,436 $384,070 Other Distribution - Maintenance $30,555 $50,341 $37,196 Total Operating Expenses $1,766,875 $1,679,062 $2,204,804 Debt Service $738,933 $543,178 $841,364 Transfers $30,555 $36,000 $572,145 Orrville Utilities Annual Report

Wastewater Utility Department Robert Auten Superintendent In 2018 our Wastewater Division treated 898 million gallons of residential, industrial and commercial wastewater.

12 Wastewater Utility Department Robert Auten Superintendent In 2018 our Wastewater Division treated 898 million gallons of residential, industrial and commercial wastewater. Three hundred and forty five tons of Bio-solids were land applied to agricultural fields, returning their nutrients to the soil. Our facility is currently operating at approximately 80% of its rated capacity. We continue to maintain our facility and collection system to assure reliable wastewater service to Orrville s residents, businesses and industries. Meeting the requirements of our OEPA discharge permit, in the most cost efficient manner possible, continues to be our primary objective. Nine employees operate and maintain our wastewater treatment plant, lift stations and more than 42 miles of sanitary sewers. Projects completed in 2018: Replaced burner, controls and turbulators on Plant Boiler. Cleaned Sludge Lagoon 1. Upcoming projects in 2019: Install new High Flow Lift Station. Apply for new NPDES (Discharge) Permit. Orrville Utilities Annual Report

Wastewater Utility Department Robert Auten Superintendent Wastewater Utility Department Operating Income and Expense Report 3 - Year Summary Description 2018 2017 2016 Wastewater Utility Operating

13 Wastewater Utility Department Robert Auten Superintendent Wastewater Utility Department Operating Income and Expense Report 3 - Year Summary Description Wastewater Utility Operating Revenue $2,250,500 $2,125,457 $2,412,957 Wastewater Utility Operating Expenses Administrative and General Payroll $325,400 $324,537 $302,027 Treatment - Operational Payroll $533,778 $528,256 $497,425 Treatment - Maintenance Payroll $262,355 $241,337 $321,938 Collection - Maintenance Payroll $50,337 $46,738 $61,940 Other Administrative and General $75,971 $102,421 $97,830 Other Treatment - Operational $216,740 $216,578 $359,759 Other Treatment - Maintenance $147,953 $161,084 $119,485 Other Collection - Maintenance $24,153 $36,802 $6,906 Total Operating Expenses $1,636,687 $1,657,753 $1,767,310 Debt Service $0 $0 $0 Transfers $413,246 $436,782 $384,540 Orrville Utilities Annual Report

14 Technical Services Department Technical Services Don Duffy Manager The Technical Services department provides a variety of critical services in support of the three Utilities as well as providing IT services to the entire organization. Technical Services is comprised of the following groups: Geographic Information Systems (GIS) GIS is responsible for the development and maintenance of the Utility mapping systems. GIS systems link information contained in a database to system maps, providing intelligent maps to the user. All three Utilities utilize GIS products and services in their efforts. GIS responds to call before you dig requests as well as providing inspection services for water and wastewater construction projects to assure adherence to codes and specifications. Information Technologies (IT) IT is responsible for maintaining the computer network, Internet, the application, storage, backup and file servers, workstations, printers and all back office support for the business systems for the entire organization. Instrumentation and Controls (I&C) This group is responsible for maintaining the instrumentation and control systems for the power plant as well as assisting with the water and wastewater utilities. Telecommunications This group is responsible for the installation and maintenance of our fiber optic network, network copper cabling, and the installation and maintenance of wireless internet equipment. Projects completed in 2018: GIS Group Made transition to ERSI GIS software. Began the implementation of the new fiber ERSI software. Updated department job descriptions to reflect current duties. Continued with advanced ESRI training. Continued to archive old documents. IT Group Provided continued support for the implementation of the new ERP software. Provided support for security cameras throughout the City. Provided support for IT audit being performed by the State. Implemented a new tape backup library. Instrumentation Replaced VFD controls for two cooling towers. Telecommunications Training for new employee. Working to bring documentation up to current state requirements. Orrville Utilities Annual Report

Technical Services Department Technical Services Don Duffy Manager Upcoming projects in 2019: GIS Department Provide land data to

Water Line Improvement project. IT Department Providing continued support for the ERP system.

Telecommunications Train new hire Add metering connections to industrial customers as required.

15 Technical Services Department Technical Services Don Duffy Manager Upcoming projects in 2019: GIS Department Provide land data to new ERP system. Evaluate GPS unit for possible replacement. Performing inspection services for High St. Water Line Improvement project. IT Department Providing continued support for the ERP system. Provide support for the annual state audit. Provide assistance in conducting network and computer systems security audit. Telecommunications Train new hire Add metering connections to industrial customers as required. Enhance documentation of the field equipment. Instrumentation Provide continued I&C support for the plant. Continue to enhance control system security. Replace Water Purification system controls. Orrville Utilities Annual Report

16 Contact Information Director of Utilities Jeff Brediger N. Main Street Electric Utility Manager Dean Kallenborn Perry Street Superintendent of Electric Distribution Dick Smith Perry Street Superintendent of Water Utility Todd Fetty Mineral Spring Street Superintendent of Wastewater Utility Bob Auten N. Main Street Manager of Technical Services Don Duffy Perry Street Office of Orrville Economic Development Mike Hedberg N. Main Street Billing Office W. Water Street

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