Council debates charter changes to create Board of Public Utilities, narrows options for board size and authority

At a council study session, council members and staff continued refining proposed charter amendments that would reorganize governance of Independence’s electric utility and set parameters for how the city could use utility resources for economic development.

City Manager (Speaker 2) opened the meeting by framing the session as a follow-up to an Oct. 27 study session focused on charter sections 3.12–3.25, and staff walked council through revised language covering definitions, board composition, hiring authority, procurement, sale restrictions and economic-development uses of utility funds.

The most immediate point of consensus was flexibility on board size. Staff and councilors discussed locking the Board of Public Utilities at seven members or allowing a range of seven to nine so the city could recruit outside expertise as the utility grows. Joe (staff), who walked the group through the draft, summarized the practical compromise: “So 7 to 9. Let’s do that.”

Councilors pressed for a requirement that the board’s majority be vested in people affected directly by the utility — proposals included a majority of registered voters within Independence, a majority of utility subscribers, or a hybrid definition (subscriber or resident/worker/property owner). Several members said requiring a majority of utility customers would reduce political risk when the amendment goes to voters. As one councilor (Speaker 10) put it: “I don’t wanna be able to use the utility to go build an office building,” emphasizing a desire to limit unrestricted commercial use of utility funds.

The draft also would change term structure: members would serve three-year terms (instead of four) and could serve three consecutive terms (nine years total) before taking a one-year break. Board-member nominations would come from the board by majority vote and final appointments would be made by majority vote of the City Council.

On management, the draft replaces the older “comptroller” phrasing with a utility director. Under the proposal the Board of Public Utilities would hire and fire the electric utility director, while other electric department employees would remain city employees subject to the city’s personnel policies and day-to-day administration by the city manager. Staff emphasized those operational ties would be preserved: the director remains a department head and the utility will still follow procurement and personnel rules.

Procurement and purchasing authority drew particular attention. Councilors said the city needs flexibility to move quickly on high-cost equipment and construction without repeatedly returning to council for approvals — a concern underscored by recent multi-hundred-thousand-dollar quotes that have changed between approval and purchase — but they also agreed major procurements and bond issuances should remain subject to policy and council oversight.

A heavily debated element was whether the electric utility can be used for economic development. The draft allows the utility to engage in pilot programs, targeted rate structures, or initiatives that benefit the utility and community, but councilors asked for clear safeguards and for most incentive or tax-exemption actions (for example, Chapter 100 incentives or special rate riders) to come back to council for approval. Staff agreed to tighten the language and to draft policy-level safeguards that would accompany any charter amendment.

Councilors also clarified that language barring sale of the electric utility is intended to stop sale of the whole operating enterprise; routine real estate or equipment conveyances would still follow council procedures and state law where required.

On timing, staff said the group is not ready for an April ballot. Councilors and staff discussed August or November as targets, with several members favoring August; staff will bring draft ballot language and options for public engagement to the next round. The council directed staff to prepare clearer charter language first, then ballot language and a town-hall engagement plan with the Public Utility Advisory Board (PUAB).

Next procedural steps: staff will return with multiple drafting options that tighten economic-development safeguards, clarify membership and majority rules, and propose procurement thresholds; council scheduled a follow-up roundtable for Tuesday, Jan. 13, at 10:00 a.m. to continue deliberations.

The study session closed with staff and council agreeing to refine the charter text and to prepare plain-language ballot-language options and public meetings prior to placing any amendment before voters.