Idaho Falls Utility Board Meetings

December 7, 2017 The City Council of the City of Idaho Falls met in Special Meeting (Idaho Falls Power Board), Thursday, December 7, 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 Ed Marohn Councilmember John B. Radford Councilmember Michelle Ziel-Dingman Councilmember David M. Smith Absent: Councilmember Barbara Ehardt Also present: Jackie Flowers, Idaho Falls Power Director Mindy Moore, Human Resources Analyst Jim Francis, Councilmember-Elect Randy Fife, City Attorney Kathy Hampton, City Clerk Mayor Casper called the meeting to order at 8:04 a.m. Mayor Casper reminded the Councilmembers of the upcoming Utah Associated Municipal Power Systems (UAMPS) and Idaho Consumer Owned Utilities Association (ICUA) meetings. She believes the ICUA meeting may be beneficial for all Councilmembers-Elect to attend. Following brief discussion, there was consensus of the current Council for those Councilmembers-Elect to attend ICUA. Idaho Falls Power (IFP) Strategic Plan Acceptance: Director Flowers presented the Strategic Plan and reviewed the five (5) areas of focus for the Strategic Plan: Customer, Financial, Growth, Reliability, and, Workforce. She stated these are very broad topics as the Strategic Plan continues to be a working document. She reviewed an example of an action plan, indicating the action plan is still being populated based on the strategic planning session specifics and goals being set as part of the performance evaluation. Brief discussion followed regarding Threats and the specific need to potentially identify BPA as a threat due to contract changes and pricing. The group decided that the SWOT (Strengths, Weaknesses, Opportunities, Threats) and areas of focus will continue to evolve. It was then moved by Councilmember Hally, seconded by Councilmember Marohn, to accept the Strategic Plan. Roll call as follows: Aye – Councilmembers Radford, Smith, Marohn, Dingman, Hally. Nay – none. Motion carried. Idaho Falls Power Board Policy and Board Training Plan Approvals: Director Flowers stated Board goals include three (3) Council/Board policies statements with a deadline of calendar year end. The first policy, Payment in Lieu of Taxes (PILOT), has been completed. She reviewed the policy purpose, the policy statement, and policy procedures, including ICUA, UAMPS, and American Public Power Association (APPA) meetings. It was noted actual meeting dates and times for Power Board Meetings will need to be established by the new Council. Following brief discussion, there were minor edits to the Idaho Falls Power Board Policy. It was then moved by Councilmember Hally, seconded by Councilmember Marohn, to accept the Idaho Falls Power Policy as presented. Roll call as follows: Aye – Councilmembers Radford, Hally, Smith, Marohn, Dingman. Nay – none. Motion carried. Director Flowers briefly reviewed the Training Plan. She noted when training occurs on behalf of IFP, this travel expense is included within the IFP budget. Following brief discussion, it was moved by Councilmember Hally, 1  December 7, 2017 seconded by Councilmember Marohn, to accept the Idaho Falls Training Plan as presented. Roll call as follows: Aye – Councilmembers Hally, Smith, Dingman, Marohn, Radford. Nay – none. Motion carried. Public Utility Market-based Compensation Strategy Discussion: Director Flowers stated this item has been an ongoing area of focus for several years. Per previous discussions with Council, IFP has continued to develop a market-based compensation process for utility-wide implementation which is needed to attract and maintain key employees with substantial investment to train. Discussion followed regarding the difficulty of recruitment. Director Flowers briefly reviewed High Demand Jobs, Personnel Trends, and the Disjointed Compensation Strategy – Step & Grade (20 employees), Union (38 employees), and Non-classified (14 employees) – data that was reviewed in January as part of the year end report. Ms. Moore reviewed the compensation process including the min, mid, and max ranges based on factors of job knowledge, responsibility, difficulty of work, and work environment. Director Flowers stated IFP is hopeful for Council implementation support and to apply this process in early January 2018 after the next Cayenta conversion test. Discussion followed regarding pay for performance and inflation increases. It was then moved by Councilmember Hally, seconded by Councilmember Marohn, to accept the Market Based Compensation as presented by IFP in conjunction with Human Resources and to make the decision based on connection and integration with Cayenta. Roll call as follows: Aye – Councilmembers Radford, Hally, Smith, Marohn, Dingman. Nay – none. Motion carried. Capital Projects in Progress or Development Discussion: 15th Street Substation – Director Flowers stated bids for this project were based on prequalification. This project will take the substation offline for approximately six (6) months during the rebuild. Construction will begin in spring 2018. MicroGrid – Director Flowers stated a physical microgrid/blackstart test (in case of emergency) has been occurring at the present time with a manual start. The goal is to understand physical limitations to concept, what technology could be added to mitigate limitations, and determine future investment. Test results will be discussed with the Idaho National Laboratory (INL). Broadway – Director Flowers stated this project qualifies for waiver due to redevelopment/infill. She reviewed estimates for IFP including material, labor and fiber costs. IFP staff is collecting data to consider an overall underground project in the downtown area. She is hopeful to review the concept with the downtown association in spring 2018. IFP could potentially recover the labor costs through the contribution mechanisms. INL – Director Flowers stated there is a recent agreement with Battelle Energy Alliance (BEA) for new buildings with costs being recovered based on their trigger of a large single load negotiated rate. Battelle has an EPC contract with JE Dunn that includes trench work for other utilities. At a future Council meeting, IFP will be requesting Council to recognize JE Dunn as the sole sources vendor, in the amount of $344,652.20, to complete the electrical and fiber trench work in conjunction with other trench work to save costs. Given that Battelle is paying the costs to JE Dunn and the costs of IFP’s work through the negotiated rate, IFP is interested in minimizing their redundant costs. Sandy Downs – Director Flowers reviewed property ownership and long-term development/infrastructure needs, including reconstruction of the current roadway. She stated IFP acquired the property in 2009. A land swap could occur between IFP and the Parks and Recreation Department as the governing body is the same for both entities. Director Flowers indicated a developer in close proximity expressed concern for a substation. Additionally, there are other City needs in the area – including the long term plan for the road which will be a main arterial and potential desire to reduce or eliminate the curves. Therefore, conversation has occurred regarding relocating the substation to the site currently occupied by the archery range. This construction would take approximately five (5) years. Director Flowers indicated there is preference to move forward with a Conditional Use Permit (CUP) which would allow adequate time to secure a new location for the archery range, possibly near the Gem State Kids Fishing Pond. The Gem State Kids Fishing Pond area, approximately ten (10) acres, was reviewed. Director Flowers stated the Federal Energy Regulatory Commission (FERC) license would allow this use as a recreational area. Council concurred that the relocation of the archers should be pursued. Councilman Radford expressed interest in retaining the portion of the Gem Lake Kids fishing pond that is northeast of the pond in its current state because of its unique beauty. He was supportive of the archers occupying the property to the west of the pond and believed it would be a desirable site for 2  December 7, 2017 them. Council asked Director Flowers to pursue discussions with the archers and prepare the CUP request for the Sandy Downs site the archers currently occupy. International Brotherhood of Electrical Workers (IBEW) Contract and Vacation/Sick Leave Discussion: Director Flowers stated the IBEW Contract includes approximately 38 employees. The recently amended policy does not affect these employees. She indicated agreeing to the policy will result in inclusion of the policy as an exhibit. She stated a misunderstanding had previously occurred regarding changes to the vacation/sick policy and she prefers one policy overall. Mayor Casper believes signing a Letter of Understanding (LOU) would be adequate as IBEW is signed annually. Director Flowers stated that the draft LOU in the packet had not yet been reviewed by the appropriate IBEW personnel. Following brief discussion there was consensus of the Council to extend the policy as is to the union with a January 1, 2018 implementation date, as well as proceeding with the LOU. Peer-to-Peer Safety Initiative Discussion: Director Flowers stated IFP continues to make good progress to enhance the safety culture although she indicated one area that has presented itself as a weakness and potential liability are the varying “work habits” associated with rubber gloving and sleeving. She believes the varying perspectives on the right way and that general practice has slipped from the Occupation Safety and Health Administration (OSHA) best practice. Director Flowers proposed rubber glove certification for all lineman which will be conducted by the Northwest Lineman College based out of Meridian. She reviewed the training requirements/course description, stating total costs for training = $84,000 for 16 Tradesmen and 4 Foreman. This training would occur in May 2018 with a six-month follow-up. Director Flowers believes this would be a good investment as journeyman employees have little continuing education and this training would also send a message that IFP is committed to safety. She reviewed a possible budget allocation. Council was agreeable to including this item will be included on a Council Meeting agenda before year end. Federal and State Legislative Activities Update: Director Flowers briefly reviewed Municipal Bonds, Tax Credit Bonds, Build America Bonds, Stadium Bonds, and Nuclear Production Tax Credits. She stated the Federal Communications Commission (FCC) is working on notice of proposed rule-making, which reduced pole attachment fees. She also reviewed electrical generation and transmission which continues to reinforce issues in the State with building transmission. Director Flowers stated there will be legislation requests to advance the Small Modular Reactor (SMR). She believes a UAMPS lobbyist is working the concept with leadership. Director Flowers will be presenting on the Chamber whitepaper associated with these two items at the December 14 meeting. Director Flowers stated IFP staff are tracking the Idaho Department of Environmental Quality (DEQ) draft plan for the Volkswagen (VW) settlement money ($14.2m for Idaho). She indicated points seem to be stacked for those areas with air quality nonattainment issues and/or population issues which do not include Bonneville County. She indicated conversation is continuing regarding pursuing bus fleet conversions. Utility Billing System Updates: Director Flowers stated there were errors in the new rates that were mailed in all October and some November commercial electric bills. The bills did not include the rate change which was effective October 1, 2018 for demand charge for commercial customers. Director Flowers indicated the Municipal Services Department sent letters indicating the correction will occur in the December billing. Due to this error, the charging station letter to commercial customers is being delayed, possibly until spring 2018. Fiber Optic Network Plan Update: Director Flowers stated IFP continues to evaluate options and staff has been in conversation with Huntsville Tennessee (new Google model) personnel regarding a technology plan for smart grid modernization for fiber advancement. Director Flowers indicated the communication element will be critical and believes IFP will be good at building the infrastructure. She stated IFP is looking at a business model, possibly similar to the new Google model but with citywide coverage. She also stated future discussion with the new Council will include timeframe, private financing, and partnership. General discussion followed. 3  December 7, 2017 There being no further business, it was moved by Councilmember Marohn, seconded by Councilmember Hally, that the meeting adjourn at 11:19 a.m. which motion passed following a unanimous vote. s/ Kathy Hampton s/ Rebecca L. Noah Casper CITY CLERK MAYOR 4