Idaho Falls Utility Board Meetings

April 13, 2017 The City Council of the City of Idaho Falls met in Special Meeting (Idaho Falls Power Board), Thursday, April 13, 2017, at Idaho Falls Power Conference Room, 140 S. Capital, Idaho Falls, Idaho at 8:00 a.m. Call to Order and Roll Call: There were present: Mayor Rebecca L. Noah Casper Councilmember Thomas Hally Councilmember David M. Smith Councilmember Barbara Ehardt Councilmember Ed Marohn Councilmember John B. Radford Absent: Councilmember Michelle Ziel-Dingman Also present: Jackie Flowers, Idaho Falls Power Director Bear Prairie, Idaho Falls Power Assistant Manager Mindy Moore, Human Resources Analyst Randy Fife, City Attorney Kathy Hampton, City Clerk Mayor Casper called the meeting to order at 8:02 a.m. and turned the meeting to Idaho Falls Power staff for the following agenda items: Idaho Falls Power Service Policy and Commercial Vehicle Charging Program: Mr. Prairie stated an in-depth review of the Idaho Falls Power (IFP) Service Policy is performed on an annual basis. He indicated IFP has been approached by customers for vehicle charging stations. The proposed policy specifies the customer would be responsible to install the pedestal concrete pad base, conduit and wire, or conduit and wire for a wall mount location. Locations of the charging station would require approval by IFP. IFP would own all charging stations and staff would perform standard maintenance and service to the charging station, including cleaning the connector, testing the voltage level and system functionality, and related minor work. The customer would be responsible for paying electricity costs as well as a service charge, ~$15-25/month. It was recommended the Building Department be aware of possible charging stations installation to incorporate during any new construction. Brief discussion followed regarding smart charger(s) and the associated cost(s). Mr. Prairie reviewed the current charging station that was set up/programmed by IFP staff. Brief general discussion followed. Mr. Prairie expressed his concerns for any liability in the event of an unforeseen incident during vehicle charging but he indicated, under the proposed policy, the customer would assume any liability. Possible next steps could include installation of charging stations to residential customers. It was noted this policy would have no impact to the current Tesla charging station. Power Supply Scheduling and Staffing Update: Director Flowers stated as of March 2017, two (2) UAMPS (Utah Associated Municipal Power Systems) schedulers who scheduled BPA (Bonneville Power Administration) Slice (real time, day ahead, and 3-10 day forecasting) and ran the TEA (The Energy Authority) hydro optimizer were no longer at UAMPS. These particular staff members worked under the direction of Mr. Prairie. This loss of staff increased the single point of failure in power supply for IFP. Director Flowers reviewed the following options: Short-term (less than one (1) year): TEA was immediately dispatched as a fall-back resource to handle IFP’s Slice scheduling.  The optimization work they are performing limits UAMPS functionality to only real-time scheduling  More frequent coordination with IFP on resource planning  IFP is working to bring new Power Supply Dispatcher up-to-speed, anticipated to take 6-8 months  IFP/UAMPS are discussing cost mitigation in short term as TEA fees are estimated at $25,000/month 1  April 13, 2017  Not a long-term solution due to cost and service schedules (other Slicers have different load profiles) Mid-term (one-10 years): IFP proposes to build bench depth internally for Slice optimization and other power scheduling, a priority for the utility since Council decision in June 2016 to stay with the Slice product.  The Power Supply Dispatcher position (approved by Council in this fiscal year) is currently undergoing aggressive training  IFP will request an additional position in the FY18 budget for a Power Supply Analyst  Overall power scheduling strategy will be set by the Assistant General Manager acting as Power Supply Manager o Power Supply Analyst will run optimizer for scheduling plans 3-10 days out o Power Supply Dispatcher will handle day-ahead planning and oversee real-time scheduling, as well as other IFP dispatch duties o UAMPS will retain only real-time scheduling functions as it relates to the Slice product. IFP is currently in discussion with UAMPS to finalize this arrangement. Long-term: The BPA contract will expire in 2027. Discussion has already commenced with respect to future products and viability of BPA. Whether IFP continues as a BPA customer or whether IFP opts to more directly deal with market or other resources, under this proposed path forward IFP will have good depth built in power supply scheduling to be prepared for this potential supply transition. General discussion followed regarding current change market conditions, river/water supply and the potential economic impact. It was noted a decision will be required in the near future to ensure the energy needs are being met. After further brief discussion, it was consensus of the Council to add the Power Supply Analyst position as soon as possible. Hydropower Plant Staffing Update: Director Flowers stated the Hydro Mechanic Foreman retired in March 2017 after 42 years of service. The budgetary plan included holding the foreman position in order to fill an apprentice position. She reviewed additional hydro mechanic staffing indicating 4 (four) staff members are currently, or will be, eligible to retire within the next seven (7) years. She indicated there is adequate budget to hire two (2) apprentices which will allow more contact time between the apprentices and the pending journeymen retirements. Councilmember Smith believes the IFP apprentice training program should be expanded to other electric utilities. Brief discussion followed. Director Flower stated IFP has significant FERC (Federal Energy Regulatory Commission) inspections in the current year and IFP would prefer to have a foreman available for the June 2017 inspection. Staff has identified funds in the budget to advance that hiring of the foreman prior to the FERC activities. She reviewed staff positions for the following fiscal year, anticipating an extended opportunity for IFP apprentices to work closely with the mechanics. Director Flowers reminded the Council that approximately 20% of the Gem State budget is paid by PAC (PacifiCorp) to reflect the output from Gem State that they receive each summer. She indicated power plants are typically under expended in their budget(s). FY18 Budget Discussion: Payment in Lieu of Taxes Policy and Pay Plan Design: Director Flowers indicated Councilmember Smith, following attendance at APPA (American Public Power Association) meetings, has expressed a desire to memorialize board policies. She stated a similar process has under been underway at IFP over the previous 10 years with respect to internal procedures. This has been a great succession planning tool for the utility and could provide continuity as changes in Council seats occur. Director Flowers proposed a format similar to the IFP procedure format for Council policies be followed. She presented a draft policy document related to setting payment in lieu of taxes (PILOT). The draft format included a few minor adjustments that she reviewed with Council: not including “fee for service” in the transfers, not including maintenance costs for street lights and traffic signalization systems as those items are on the IFP asset registry, and reviewed the language related to the percent contribution formulas. She also reviewed the projected PILOT calculation for FY18 noting declining revenues and the impact they will have. Traffic fund contributions for FY18 are being assessed in coordination with Public Works. After brief discussion, it was determined a PILOT policy will be adopted by the Council in the future and that will be the process going forward. Councilmember Smith requested policies be included in the power board training packet. 2  April 13, 2017 Director Flowers stated IFP is working with HR staff (conversation began in 2015) to develop a comprehensive utility compensation strategy based on market as there is currently a disjoined compensation practice for IFP employees. It is anticipated to complete development of a utility-wide scale based on market for implementation in January 2018 with adoption of policy before year end. She indicated transitioning to a January implementation time frame aligns IFP for evaluations and future pay for performance. This will also allow wages to be reviewed prior to cost of service analysis to be included in the analysis. There being no further business, it was moved by Councilmember Smith, seconded by Councilmember Marohn, to adjourn the meeting at 9:20 a.m. and move into Executive Session. The Executive Session has been called pursuant to the provisions of Idaho Code Section 74-206(1(c) To conduct deliberations concerning labor negotiations or to acquire an interest in real property which is not owned by a public agency, and not to reconvene into regular board meeting. Roll call as follows: Aye – Councilmembers Smith, Hally, Radford, Ehardt, Marohn. Nay – none. Motion carried. The City Council of the City of Idaho Falls met in Special Council Meeting (Executive Session), Thursday, April 13, 2017, in the Idaho Falls Power Conference Room located at 140 S. Capital in Idaho Falls, Idaho at 9:32 a.m. There were present: Mayor Rebecca L. Noah Casper Councilmember David M. Smith Councilmember Ed Marohn Councilmember Thomas Hally Councilmember Barbara Ehardt Councilmember John B. Radford Also present: Jackie Flowers, Idaho Falls Power Director Bear Prairie, Idaho Falls Power Assistant Manager Mindy Moore, Human Resources Analyst Randy Fife, City Attorney The Executive Session has been called pursuant to the provisions of Idaho Code Section 74-206(1(c) To conduct deliberations concerning labor negotiations or to acquire an interest in real property which is not owned by a public agency. There being no further business, the meeting adjourned at 10:00 a.m. s/ Kathy Hampton s/ Rebecca L. Noah Casper CITY CLERK MAYOR 3