1 2 3 4 5 6 7  MINUTES OF THE MEETING BOUNTIFUL CITY POWER COMMISSION September 26, 2023-8:00 a.m. Those in Attendance  OF THE  8 Power Commission 9 Paul C. Summers, Chairman 10 Susan Becker, Commissioner 11 Dan Bell, Commissioner 12 Richard Higginson, Councilman 13 David Irvine, Commissioner 14 John Marc Knight, Commissioner 15 Jed Pitcher, Commissioner  Power Department Allen Johnson, Director Dave Farnes Alan Farnes Tyrone Hansen Jess Pearce Luke Veigel Recording Secretary Nancy T.I Lawrence Visitors Gary Davis, City Resident Ron Mortensen, City Resident  16 17 18 19 20 21 22 WELCOME 23 25 27  Chairman Summers called the meeting to order at 8:00 a.m. and welcomed those in  24 attendance. The invocation was offered by Commissioner Bell.  26 MINUTES.June 27,2023  Minutes oft the regular meeting ofthel Bountiful Power Commission held August 22,  28 2023, were presented, and unanimously approved as written on ai motion made by 29 Commissioner Pitcher and seconded by Commissioner Bell. Commissioners Bell, Becker, 30 Irvine, Knight, Pitcher and Summers, and Councilman Higginson voted "aye". 32 BUDGET REFORT-YTARTODATE 1-MONTH PERIOD  31 33  Mr. Hansen presented a summarized Budget Report for the Fiscal Year-to-date 1-  34 Month period ending July 31 2023. Total revenues Year-to-Date were $3,108,362, below its 35 HAB by ($434,755). Majori items (below) their HABS were: Electric Metered Sales 36 (EMS), by (324,877), 10.1 percent below its HAB. This included the $600,000 estimate for 37 EMS to more accurately represent the Income Statement. Air Products was below its HAB 38 with an average load factor of59.7%, at $(25,935); Contribution in Aid to Construction was 39 below its HAB at $(38,424), which included the $7,000 line extension at 1227Lorien Court; 40 and Interest Income on. Investments was below its HAB by $(54,85), with July interest  41 allocation not yet posted.  42 43  Total Operating Expenses, YTD, were $3,256,949, above its HAB by ($9,164).  44 Major items (above) or below their HABs included: Power Expense was below by $473 45 with Power Generation being over by ($364,000) --gas sold at a loss--, and Power Resources 46 being $365,000 under; hydro transmission expense was also below its HAB by $11,847;  Page 1 of6    (PC, minutes September26, 2023)  1 Meters Expense was below its HAB by $11,043; Computer Expense was below its HAB by 2 $26,648; and the Transfer to the General Fund was below its HAB by $23,997 with lower 3 EMS. Expenses above the HAB were: Distribution Expense by $(16,459); Transformers 4 Expense by $(13,813); and Insurance Expense (which had been budgeted higher, but the  5 annual payment was still was over budget) by $(34,544).  6 7 9 10 13 14  Total Capital Expenditures YTD were $28,194 and included $28,000 for the 2055 Total Labor and Benefits was $311,746. As of22J July 2023 (the last pay period paid  8 South Main Townhomes.  11 ini the YTD period), 6.0% of$ $319,711 oft the TL&B could have been spent; the actual  12 TL&B was $7,965 below that target.  The Net Margin for the YTD was ($176,780), which included the $600,000 lower  15 EMS estimate, as revenues came in lower due to cooler summer temperatures. Total Cash & 16 Cash Equivalents were ai net $16,209,504 at month end, down ($237,459) from $16,446,964 17 at 30. June 2023, and ($236,495) below the $16,446,000 total reserved cash requirement. 18 Discussion followed related to the Cash Reserve requirement and it was noted that this 19 reserve is critical to the City in terms oft the bond rating. Mr. Johnson explained that, if 20 necessary, the City has two years to get back to the minimum reserve requirement; and he 21 also noted that he did not feel we were in an alarming position at this time. He said the rate 22 increase will assist in getting us back to where we need to be, which favors us both in 23 revenues and the formula which is used to establish the reserve amount.  24 25  Commissioner Pitcher asked about the Accounts Receivable footnote ofa $199,455  26 decrease in Accounts Receivable. Mr. Johnson explained that UAMPS credits our bill at the 27 end oft the year for anything we. have over-paid. Wel had a credit of $435,000 from UAMPS 28 which was recognized at the end of2023. Commissioner Pitcher made a motion to accept 29 the Budget Report, as presented. Councilman Higginson seconded the motion and voting 30 was unanimous. Commissioners Becker, Bell, Irvine, Knight, Pitcher and Summers, and  31 Councilman Higginson voted "aye".  32 34  33 CABLE PULLING TRAILER PURCHASE APPROVAL  Mr. Pearce reviewed that the 2023-24 Fiscal Year budget includes the purchase ofa  35 new cable pulling trail. This unit will replace Unit #5913, a 1990 cable puller that is 36 unreliable and we are not able to obtain replacement parts when necessary. Mr. Pearce 37 noted that this unit will be vital ini the replacement ofapproximately 250,000 feet ofbare 38 concentric cable left on the underground system and will be used to install new cables 39 throughout the City. Bid specifications were sent to two vendors. Itis the recommendation 40 ofs staff that we approve the low bid from Hee's Enterprises, Inc. for a Condux puller in the 41 amount of$197,000.00. Delivery time is 8 weeks. It was noted that the cable will most 42 likely not be installed until next spring; however the industry has indicated that there will be 43 a7 percent rate increase in January 2024. Therefore, purchasing now will result in a saving 44 ofapproximately $15,000. Commissioner Irvine made a motion to recommend to the City 45 Council approval of this equipment, at this time. Commissioner Bell seconded the motion  Page 2 of6    (PC minutes September26, 2023)  and voting was unanimous. Commissioners Becker, Bell, Irvine, Knight, Pitcher and  2 Summers, and Councilman Higginson voted "aye". 4 ANIXTER TRANSFORMER PURCHASE APPROVAL  3 5  Mr. Pearce presented a request to purchase 23 transformers (20 ea. 100 kva single phase pad; 2 ea. 300 kva three phase pad; and 1 ea. 500 kva three phase pad). He noted that 7 transformers continue to bel hard toj purchase and their lead times are ai factor in keeping an 8 adequate inventory. Three vendors responded to the bid request and it is the 9 recommendation ofs staff to approve the bid from Anixter Power Solutions (for GE 10 transformers) in the amount of $227,098.00. This was the high bid, based on a delivery time 11 of26-28 weeks. (The two other qualifying bids had a delivery time of50 -1 114 weeks). 12 Bids were evaluated on both the purchase price and the delivery. Mr. Pearce noted that 13 almost 1/3 of these new transformers have been identified to go out on1 the system. 16 transformers (considering the long lead time for delivery). Following discussion, it was 17 noted that the 1001 kva transformers are the ones critical to inventory and others could be 18 considered later. Commissioner Knight made a motion to recommend approval of the 19 Anixter Power Solutions bid ini the amount of$227,098.00. Commissioner Becker seconded 20 the motion and voting was unanimous with Commissioners Becker, Bell, Irvine, Knight,  14 15  Councilman Higginson asked about also approving the bid from Irby for Howard  21 Pitcher and Summers, and Councilman Higginson voting "aye". 23 LED POST TOP FIXTURE PURCHASE APPROVAL  22 24  Mr. Pearce presented ai request for approval toj purchase 200 LED post-top light  25 fixtures to replace the existing high-pressure sodium and mercury pole top streetlights on 26 our system. He explained that this will lower both our power costs and the maintenance cost 27 tor maintain the system. Invitations to bid were sent to two suppliers and it is the 28 recommendation ofs staff to accept the low bid from Anixter Power Solutions (Salt Lake 29 City) in the amount of $71,956.00. Delivery is quoted at 5-6 weeks. He said that the 30 fixtures will bej put ini inventory and billed our when they go into the system. (It was noted 31 that in the past a "purple-ish" light was mistakenly delivered tol Bountiful - and these 32 fixtures will not be purple). Commissioner Becker made ai motion to: recommend to the City 33 Council that the bid from Anixter Power Solutions for 200 (ea.)LED Multi-volt Post Top 34 Fixtures in the amount of $71,956.00 be approved. Councilman Higginson seconded the 35 motion and voting was unanimous. Commissioners Becker, Bell, Irvine, Knight, Pitcher,  36 and Summers, and Councilman Higginson voted "aye". 38 PINEVIEW GENERATOR REPAIR APPROVAL  37 39  Alan Farnes reviewed that last July the generator at the Pineview Hydroelectric  40 power plant tripped offline. Sidewinders, a company that specializes in generator 41 maintenance, was hired and a temporary repair was made. It was also recommended that a 42 more permanent repair would need to be made after the Pineview plant was no longer 43 generating for the summer season. Sidewinders has provided a quote ($39,790) to complete 44 the permanent replacement oft thc cntirc wire between the exciter and the rotor. This quote 45 also includes cleaning, painting, and testing the stator, and cleaning, painting, and testing the 46 rotor. Mr. Farnes referred to colored photos of the exciter and rotor and the proposed work.  Page 3 of6    (PC minutes September26, 2023)  1  Iti is the recommendation of stafft to approve the Sidewinder quote. Commissioner  2 Knight made a motion that the Power Commission recommend to the Cily Council thal this 3 quote be approved. Councilman Higginson seconded the motion and voting was unanimous. 4 Commissioners Becker, Bell, Irvine, Knight, Pitcher, and Summers, and Councilman 5 Higginson voted "aye". Sidewinders will be available in November to do this work which  6 will take approximately six (6) days.  7 9  8 RESOLUTION 2021-14STEELSOLAR APPROVAL  Mr. Johnson reviewed that the proposal to secure a utility size solar power project  10 has been worked on for several years, and in] November 2020, we secured at twenty-five (25) 11 year power purchase agreement with Steel Solar, LLC. He briefly reviewed these previous 12 actions with regard to this project: (1) the City Council approved Resolution #1010-22 to 13 approve the power sales contract through UAMPS for 16.15% oft the 40,000 kW output from 14 the "Steel Solar Project"; and (2) the City Council approved Resolution 2022-11 on July 12, 15 2022, amending the contract because Steel Solar claimed ai force majeure due to supply 16 chain problems as it related to not using forced labor in China, and the revised contract 17 purchase price for the project went from $31.35/per megawatt hour to $34.66/per MWH for  18 the 25 years. 19 20  The developer oft this project, D.E. Shaw Renewable Investments (DESRI) has now  21 requested a change in the current PPA to allow them to take advantage of production tax 22 credits and associated financing bascd on PTCS. This option was not available until now 23 and DESRI and UAMPS have agreed on contract changes which will require approval ofa 24 Second Amended PPA. Mr. Johnson reviewed the basic points of] Res. No. 2023-14,A 25 RESOLUTIONAUTHORIZING THE STEEL SOLAR IA PROJECT, SECOND. AMENDED 26 AND. RESTATED TRANSACTION: SCHEDULE UNDER THE. MASTER. FIRM POWER 27 SUPPLFAGREEMENT WITH UTAHA ASSOCIATED MUNICIPA POWER SYSTEMS; AND  28 RELATED. MATTER.  29 30  Based on an analysis ofthis second amendment and our desire toj participate in a  31 utility size solar project, it is the recommendation of staff to approve the Steel Solar 1A 32 Project Resolution, "Authorizing the Steel Solar 1A Project Second Amended and Restated 33 Transaction Schedule", and to approve Resolution #2023-14, and authorize the Mayor to 34 sign on behalf ofthe City. Hei noted that this project will allow us to increase our renewable 35 energy portfolio for the entire city. The project will need to be backed up by the existing 36 Power Department' s power plant to provide power to residents in the afternoons and 37 evenings. The transmission rights for this project have been secured, the price is 38 competitive ($34.66/mWh) with other solar projects of the same size and includes both 39 energy and renewable energy credits (RECs). The Second Amended PPA does not raise or 40 change the Contract Price. Following discussion, Commissioner Pitcher made ai motion to 41 support the staffrecommendation and to send a positive recommendation to the City 42 Council to approve the Steel Solar 1A Project Resolution AUTHORIZING THE STEEL 43 SOLAR 1A PROJECT SECOND AMENDED AND RESTATED TRANSACTION 44 SCHEDULE", and approve Resolution #2023-14, and to authorize the Mayor to sign on 45 behalfofthe City. Commissioner Irvine seconded the motion which carried unanimously.  Page 4 of6    (PC minutes September26, 2023)  Commissioners Becker, Bell, Irvine, Knight, Pitcher, and Summers, and Councilman  2 Higginson voted "aye". 4 RESOURCE UPDATE  3 5  Mr. Johnson reported that Lake Powell is still below the spillway by 1261 feet (which  6 is 84 feet above the penstock intake level. The current storage of 8.8: million acre-feet is 7 38% oft the reservoir capacity (down about half-way from full). The current CRSP rate will 8 be effective through year 2023 and will stay in effect for twoi more years, which is good 9 news. There will also be no: rate change with WAPA ($5.25/kW-month, and $12.36/mWh. 10 Echo and Pineview are currently operating with great water levels and expect to run both  11 hydro'st through the winter, weather dependent.  12 13  Mr. Johnson recommended that we do not become involved with the Sunny Side  14 Coal project (located near Price, Utah. We would need to commit to a flat rate of $71.25 15 from October until December, 2026 and this would put us in al long position most months. 16 He said we would be better off to buy power at ai more expensive rate, just when there is a 17 need. Solar power has been reviewed (see above) and recommended for continued 18 consideration. This will necessitate adoption oft the Resolution as noted.  19 20  Another future power option is the geothermal project through UAMPS which is  21 located near Fallon, Nevada. This 5: mW option would be available starting in 2027 with a 22 25-year PPA. The Lila Mine (coal) is still not producing coal, and amount and timing is 23 unknown. Hunter (through UAMPS) has not been scheduled from October November. 24 The IPP resource is also dependent on coal and is limited due to delivery issues and the 25 legislative pressures on repowering. There are currently two units operating through 26 October and our summer season ended September 2, 2023. We have not recalled any ofthis 27 resource for winter 2023-24, but have called back 14 mW's for summer 2024. He reviewed 28 State legislative attempts to disband the IPA Board and put IPP under the 29 supervision/contro. of the Public Service Commission. He noted that our representatives 30 support IPP as currently governed and that he anticipates a "very interesting" legislative 31 session. The effort to convert the IPP project to gas is still underway and the $750 million  32 bonding was completed August 2023.  33 34 36 agreement. 37 39 41 43 44 45 46  See information regarding the CFPP, a solar resource, previously discussed, above.  35 He said that subscription is still a major issue and that wel have signed a non-disclosure  38 Commissioner Bell was excused at this time - 9:16 p.m.  40 Thej following items were included in the packet, but not discussed in the meeting:  42 POWER SYSTEMS OPERATIONS) REPORT  a.July 2023 Resource Reports b. August 2023 Lost Time/Safety Reports C. August 2023 Public Relation Reports d.July 2023 Outage Reports  Page 5of6    (PC minutes September26, 2023)  2 OTHER BUSINESS  3 6 8 9 a.m. 10 11 ADJOURN 12  Commissioner Irvine referenced the presentation which was made in the Seattle  4 conference regarding cash flow and how it will impact cash flow. Mr. Johnson said that we  5 will schedule a discussion of this item ini the November meeting.  7 NEXT POWER COMMISSION  The next meeting oft the Power Commission will bel held on October 24, 2023.at 8:00  The meeting adjourned at 9:20 a.m. on a motion by Councilman Higginson and  13 seconded by Commissioner Pitcher. Voting was unanimous with Commissioners Becker, 14 Irvine, Knight, Pitcher and Summers, and Councilman Higginson voting "aye". 15 Commissioner Bell had been excused from the meeting at 9:16 a.m. and was not included in  16 the vote. 17 18 19 20 21  Paul C. Summers, CHAIRMAN CP  Page 60 of6