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HomeMy WebLinkAbout12 Consideration to approve a Troubleman position and hire two Journeyman AGENDA ITEM #12 Page 1 of 3 MEETING DATE: July 21, 2021 TO: Board of Directors FROM: Stephen Moore, Electric Operations Manager SUBJECT: Consideration to Approve the Troubleman Position APPROVED BY______________________________ Joe Horvath, Electric Utility Director/ Assistant General Manager RECOMMENDATION: A. Approve the addition of a Troubleman position at Wage Range 37. B. Approve the addition of a second Substation Lineman/Inspector at Wage Range 36. BACKGROUND: The District has identified opportunities to improve operational efficiencies by making changes to the crew structure and positions within the Electric Department. The Electric Department currently consist of the following outside crew assignments:  One (1) Service Crew consisting of 3 FTE’s;  Two (2) Line Crews consisting of 11 FTE’s; and  One (1) Substation Lineman/Inspector FTE. The Service Crew structure is a concept relevant to electric utilities of the past. Though some utilities continue to run Service Crews the District has found that it is inefficient and propose to eliminate this structure. Service Crews typically field customer calls for secondary (low-voltage) issues, attend customer construction meetings and perform connect/disconnect of customer services for various reason. Some inefficiencies include crews making multiple trips to the same address, trucks rolling with not enough personnel requiring crews to loan out crew members unexpectedly or too many persons arriving on a job site resulting in unproductive staff time. Staff proposes to reorganize existing outside crews to the following crew structure and job assignments:  One (1) Troubleman FTE;  Three (3) four person Line Crews consisting of 12 FTE’s; and  Two (2) Substation Lineman/Inspector FTE’s. This crew structure is shown on the attached organizational chart (Attachment 1). The Troubleman position will improve efficiencies by allowing Line Crews to complete customer installations in a single trip and increase crew productivity related to inspection, maintenance and construction of the electrical distribution system. The Troubleman position will also improve Page 2 of 3 efficiencies by properly assigning work to an experienced and capable independent Journeyman Lineman. The service crew vehicle will be reassigned to new Troubleman position. This position can independently perform such tasks as mark and locates, customer meetings, power trouble calls and smaller customer requested connect/disconnects. In early 2021, staff collaboratively worked with IBEW 1245 to develop and finalize the Troubleman job description, responsibilities and relevant wage range for the Board’s consideration. Changing from two Line Crews to three Line Crews will also allow the District to execute pole replacements and line extension projects more efficiently while creating staffing redundancies amongst the Line Crews. The addition of a third Line Crew requires a capital investment of a third Digger vehicle at an estimated cost of $400,000 and useful life of 15 years. Further, with long order lead times, the crew change necessitates the near-term rental of a Digger at cost estimate of $4,000 per month. Changing from one Substation Lineman/Inspector to two Substation Lineman/Inspectors will also improve efficiencies related to employee coverage, availability to meet the needs of our customers for inspections and substation maintenance and repairs while supporting the Line Crews as necessary for switching or other operations. OBJECTIVES AND GOALS: These items are in support of the following objectives and goals identified by the District: 1.05.020 Objectives: 6. Manage the District in an effective, efficient, and fiscally responsible manner. 1.05.030 Goals: 6.2. Employ a qualified and productive workforce. FISCAL IMPACT: No additional FTEs will be required for the proposed crew structure. The existing and proposed crew structure each contain 15 FTEs. However, the proposed crew structure will result in a slight increase to labor cost due to the Troubleman position at Wage Range 37 and having a second Substation Lineman/Inspector position. The increase in payroll cost is estimated to be $7,134 in wage labor, $1,712 in related overhead costs; for a total annual payroll cost impact of $8,846. Rental of a Digger has an estimated cost of $4,000 per month. Rental for remaining 5 months of 2021 equates to $20,000. This unplanned expense is more than offset by lower expenses in other areas of electric operations budget, excluding wildfire defensible space. The 1 month in 2022 of rental expense will be incorporated in 2022 Budget draft for Board approval. A Digger capital investment of $400,000 equates to a 0.5% increase in electric utility plant (gross fixed assets). Annually, with a 15 year useful life, the additional Digger will increase depreciation expense $26,667, which equates to 0.9% increase in annual depreciation expense. Per customer impact calculates as follows: $26,667 / 14,421 customers / 12 months = $0.15 cents per customer per month. The Digger capital investment will be incorporated in the 2022 capital expenditures plan (ordered with Board approval in 2021, receipt of vehicle and cash outflow in 2022). Page 3 of 3 ATTACHMENTS: Attachment 1 – Proposed Crew Structure