1 2 3 4 5 6 7 8  MINUTES OF THE. JOINT MEETING OF THE THE BOUNTIFUL CITY COUNCIL POWER COMMITTEE AND THE BOUNTIFUL POWER COMMISSION  Aprill1,2023-8:00 a.m. Those in Attendance  9 Council Power Committee 10 Kendalyn Harris, Mayor 11 Richard Higginson, Councilman 12 Cecilee Price-Huish, Counciwoman 14 Power Commission 15 Paul C. Summers, Chairman 16 Susan Becker 17 Dan Bell 18 John Marc Knight 19 David Irvine 20 Jed Pitcher 21 22 Other  Power Department Allen Johnson, Director Alan Farnes David Farnes Tyrone Hansen Jess Pearce Luke Veigel Recording Secretary Nancy T.I Lawrence Visitor Gary Davis, City Resident  13  23 Jesse Bell, Councilman 24 Kate Bradshaw, Councilwoman 25 Gary Hill, City Manager 26 Galen Rasmussen, Assistant City Manager 27 28 WELCOME 29 31 33  Chairman Summers called the meeting to order at 8:00 a.m. and welcomed those in  30 attendance. The invocation was offered by Commissioner Bell.  32 MINUTES, FEBRUARY21.2023  Minutes of the regular meeting oft the Bountiful Power Commission held February  34 21,2023, were presented, and unanimously approved as written on a motion made by 35 Commissioner Pitcher and seconded by Councilman Higginson. Commissioners Becker, 36 Bell, Irvine, Knight, Pitcher and Summers and Councilman Higginson voted "aye".  37 39  38 BUDGET PRESENTATION  Mr. Hansen gave an overview of the proposed budget for Fiscal Year 2024, balanced  40 at $36,595,491. The budget includes a 15 percent rate increase, a $1.00 increase in the Pole 41 Attachment Fee, and minor changes of policy regarding security lights, residential 42 underground electric service, and decorative street lights. Bountiful City Light & Power 43 provides electrical power to approximately 15,616 residential customers, 1,654 commercial 44 customers, and one industrial customer (a total of1 17,271 customers).  45  Page 1of6    (PC minutes April 11, 2023)  Mr. Hansen reviewed the components oft the City'selectrical: system (substations,  2 transmission lines, overhead and underground distribution lines, and miles of street light 3 circuits. Resources are acquired from the Colorado River Storage Project (CRSP), 4 Intermountain Power Project (IPP), a natural gas fired power plant, two hydroelectric 5 projects, the Red Mesa Solar Project, and contracts from industry suppliers. He concluded 6 this portion ofl his presentation with ai review oft the major role and critical function oft the 7 department: (1)to ensure the safety of everyone that interacts with BCLP's electrical 8 systems; (2) to buy and generate electricity at economical prices; (3) to deliver electricity to 9 residential, commercial, and industrial customers; and (4) toj provide long-term reliable 10 electric service. The priorities for the: fiscal year include upgrading feeders, beginning 11 replacement and upgrading oft the hydro control systems; starting the engineering for the 12 rebuild oft the Northwest Substation; and acquiring power resources to stabilize the cost of  13 power and increase "green" and carbon-free resources.  14 15  Mr. Pearce continued the Budget presentation by reporting the very notable  16 achievement ofhaving no lost-time accidents for over 5 years (over 1,825 days with 17 70,000+ hours worked per year). The group expressed "major Kudos" for this remarkable 18 achievement - noting that during this time we experienced the 2020 wind storm and had as  19 many as 100 people working on some days.  20 21  Mr. Pearce reviewed the history ofrestoring outages for the past six years, and the  22 progress which is being made on distribution pole replacements. At the current rate, it will 23 take 23 years to replace the 2,804: remaining poles and many ofthose poles will not last that 24 long - documenting ai need to step up the pole replacement program. Underground 25 maintenance includes an aggressive plan to replace bare concentric cable with jacketed 26 cable. Again, this program needs to be accelerated to avoid potential major reliability 27 issues. The tree trimming program is supported by one in-house and two contract crews and 28 completes a city cycle approximately every four years. One of the major issues facing 29 maintenance and operation since Covid is supply chain and this has created ai need for  30 advance planning when ordering supplies and materials.  31 32  The proposed budget includes $2,335,000 (down $(569,500)) for Capital  33 Expenditures, based on a 10-year long-term plan. Mr. Veigel reviewed the proposed 34 upgrades for the Distribution System, hydro upgrades, and substation upgrades. Many of 35 these proposed expenses are: necessitated by outdated/aging equipment and are essential to 36 the reliability of our system. Mr. Pearce explained that $400,000 isi included to install a 6- 37 bay garage extension and replace three vehicles. He noted aj proposed increase of$1.00 38 (from $121 to $13) for the annual pole attachment fees will help in offsetting pole  39 maintenance and replacement costs.  40 41  Mr. Pearce also reviewed a concern regarding a current maintenance policy for  42 underground security lights. There are approximately 161 lights oft this nature and he 43 explained the issues associated with the City providing maintenance for theses lights, which 44 are basically parking lot lights. When it is necessary to repair/replace the underground wire, 45. costs can become prohibitive where there are: retaining walls, driveways, etc. that are 46 disturbed. Itis proposed that the City will continue to repair a 200 amp or smaller service  Page 2 of6    (PC, minutes April I1, 2023)  I (2) times before it becomes thel homeowner'sr responsibility for repairs. After (2) repairs 2 have been made, the City will temporarily connect power and the owner will have 30 days to 3 make repairs. Landscaping, concrete, retaining walls, sod, etc., will be the homeowner's 4 responsibility. The proposed budget also provides that noi new decorative light poles will be 5 installed except for a 4-block downtown Main Street area. Itist the current policy that all  6 replacement bulbs are LED.  7 8  Mr. Hansen opened a discussion on. Resources and Mr. Johnson reviewed the costing  9 structure OfUAMPS Unplanned Pool Pricing, noting a variance of4 % cents to 11 cents for 10 the month ofDecember 2022. This resource is used to cover gaps in firm resources and is 11 monitored hourly by the dispatchers and Mr. Johnson. Several charts were reviewed which 12 showed the projected resources for the coming year, the cost oft those resources and the need 13 for a rate increase. A minimum rate increase of15 percent is recommended, and will be 14 considered for approval by the City Council on May 9, 2023. Several oft the commissioners 15 voiced concern that this may not be enough to maintain the contingency that has been set in 16 the past. Discussion followed regarding Operating Revenues, proposed at $33,861,930, up 17 from the past year by $4,933,857. This includes Electric Metered Sales at $30,152,560 18 (with the 15% rate increase) and Air Products Income at $2,669,814, also with the 15% rate 19 increase, and a 62% estimated load factor (which is subject to change).  20 21  Mr. Hansen continued with a review of proposed Operating Expenses: Personnel  22 Services at $5,304,293; and Operations and Maintenance at $25,748,750, up $6,084,776; 23 Net Operating Transfers In (Out) at $(816,384). The 10-year Capital Plan includes 24 $37,985,000 for the next ten years. This includes rebuilds of substations, transmission 25 system rebuilds and reconductoring, upgrades to the distribution and street light systems, 26 replacement of the No. 1 turbine at the Plant, control systems for Echo and PineView 27 hydro's, and ongoing vehiclelequipment replacement program. He said iti is the staff 28 recommendation that approval be given to aj proposed total balanced budget of$36,595,491 29 which includes: 15%1 rate increase, increase Pole Attachment Fee from $12 to $13, change 30 ins security light policy, residential Underground Electric Service Policy, and Decorative 31 Street Light Policy. Itis also recommended that approval by the City Council of rates, fees, 32 and policy changes on May 9, 2023 be effective for. June 1, 2023 usage.  33 34  Mr. Johnson noted that a public hearing will be set for. June 13th to open the current  35 fiscal year budget and to make the necessary transfers to cover shortfalls in the current year. 36 He suggested that another rate increase would be needed next year to start building reserves 37 back up. The Council and Commissioners thanked the Power Department Staff for their 38 report and for their outstanding efforts on behalfoft the City. Commissioner Knight made a 39 motion to approve Bountiful City Light and Power Proposed Fiscal Year 2024 Budget, as 40 presented and discussed, and send it to the Power Committee including:  41 42 43 44 45 46  15% rate increase effective June 1, 2023 Annual Pole attachment fee increase from $12 to$13 Security Light Policy Change Residential Underground Policy Change Decorative Street Light Policy Change.  Page 3of6    (PCminutes April 11, 2023)  1 Commissioner Becker seconded the motion which carried unanimously. Commissioners 2 Becker, Bell, Knight, Irvine, Pitcher, and Summers, and Councilman Higginson voted  3 "aye". 4 5 8 9 10 11 12 13 16 17 19 10:03 a.m. 20 22  The matter was then referred to the City Council Committee for approval. Mayor  6 Harris made a motion to BCLP's proposed FY: 2024 budget, as presented and discussed, and  7 send it to the City Council including:  15% rate increase effective. June 1,2023 Annual Pole attachment fee increase from $12to$13 Security Light Policy Change Residential Underground Policy Change Decorative Street Light Policy Change.  14 Councilwoman Cecilee Price-Huish seconded the motion which carried unanimously. 15 Councilpersons Higginson, Price-Huish, and Mayor Harris voted "aye".  The Council Power Committee all expressed appreciation for the dedication and  18 professionalism of the Power Department and this portion oft the meeting adjourned at  21 BUDGET REPORT - YEAR1 TODATE 8-MONTH PERIOD  Mr. Hansen presented a summarized Budget Report for the Fiscal Year-to-date 8-  23 Month period ending February 28, 2023. Total Revenues YTD were $21,923,405, above its 24 HAB by $1,677,092. Major items above budget were: Electric Metered Sales, at 25. $1,076,451, above budget by 6%; Air Products income, at $253,848, above budget with an 26 average load factor of74.3% for the YTD period, compared to 56.6% for this time last year; 27 Contribution in Aid to Construction is above its HAB by $123, 427; and Interest Income on 28 Investments above its HAB by $204,562, with February interest allocation of $94,000. 31 Major items (above) budget included Power Costs Expense at ($5,669,930), above its HAB 32 by ($5.6M); Credit Card Merchant Fees of($10,297; Insurance Expense at ($45,876), and  29 30  Total Operating Expenses YTD were $22,537,249, above the HAB by ($4,800,473).  33 Transfer to the General Fund Expense at ($26,589).  34 35 38 39  Total Capital Expenditures YTD were $693,751 and included: $432,000 for Feeder  36 574; $135,000 for Feeder 576; $49,000 for Renaissance; $35,000: for the Renaissance MRI;  37 and $17,000 for the Main Street MRI.  Labor and Benefits Expense YTD (included in Operating Expenses YDT and Capital  40 Expenditures YTD presented above) was $3,018,383. As of18 February 2023, 63.8%or 41 $3,428,126 oft the total Labor and Benefits budget could have been spent; the actual TL&B  42 was $409,744 below that target.  43 44  The Net Margin YTD was ($1,307,595), as above-budget revenues and many below-  45 budget operating expenses weren'te enough to overcome the high power costs. The total 46 Cash and Cash Equivalents were at ai net $20,472,919 at month end, up $78,005 from  Page 4 of6    (PC, minutes. April 11, 2023)  $202,394,914 at 30. June 2022 and $5,364,919 above the $15,108,000 total reserved cash  2 requirement. 3 4  Following al briefdiscussion, Commissioner Pitcher made ai motion to accept the  5 Budget Report for the Year-to-Date 8-Month Period as presented. Councilman Higginson 6 seconded the motion and voting was unanimous. Commissioners Becker, Bell, Irvine, 7 Knight, Pitcher, and Summers, and Councilman Higginson voted "aye".  8 9 11  10 POWER POLE PURCHASE APPROVAL  Mr. Pearce presented ai request to purchase 78 poles (1535-foot, 6 40-foot, 4245-  12 foot Class 3, and 15 45-foot Class 1 Western Red Cedar poles. He said this is a single 13 source bid as the vendor, Stella-Jones, is still the only vendor able to bid butt treated poles. 14 The bid from Stella-Jones, Tacoma, Washington, has been reviewed by the Power 15 Department staffand the City Manager and is recommended for approval for the total sum 16 of$98,982. Commissioner Pitcher made a motion to recommend to the City Council that 17 the bid from Stella-Jones, be approved, as presented. Councilman Higginson seconded the 18 motion and voting was unanimous. Commissioners Becker, Bell, Irvine, Knight, Pitcher,  19 and Summers, and Councilman Higginson voted "aye". 21 EATON ENGINEERING APPROVAL  20 22 24 26  Mr.. Johnson reported that necessary information to move forward with hydro  23 engineering has not yet been obtained and this item was tabled. 25 DIRECTIONAL BORING BID APPROVAL  Mr. Pearce reviewed that we have an underground distribution circuit and two  27 streetlight circuits that need to have an underground conduit installed sO that new wire can 28 bei installed. A request for bids was sent to five contractors and it is recommended the bid 29 be awarded to Americom Technology, Inc. from Murray in the amount of209,935.00. The 30 work will include installation of one Distribution System project and two Streetlight Project 31 sites, with ai total of 3,400 linear feet oft boring. Councilman Higginson motioned to 32 recommend approval ofthis bid to the City Council. Commissioner Irvine seconded the 33 motion and voting was unanimous. Commissioners Becker, Bell, Irvine, Knight, Pitcher, 36 Thefollowing items were included in the packet, but not discussed in the meeting:  34 and Summers, and Councilman Higginson voted "aye".  35 37 39 40 41 42 43 44 45 46  38 POWER SYSTEMS OPERATIONS REPORT  a. February 2023 Resource Reports b. March 2023 Lost Time/Safety Reports C. March 2023 Public Relation Reports d. February 2023 Outage Reports  Page 5of6    (PC, minutes. April 11, 2023)  OTHER BUSINESS  2 4 penstocks. 5 7 8 a.m. 9 10 ADJOURN 11 14 15 16 17  Forinformation only, Mr. Johnson reported that the Echo hydro has been shut down  3 due to water releases necessary to management oft the reservoir) causing vibration oft the  NEXT POWER COMMISSION  The next meeting of the Power Commission will bel held on May 23, 2023, at 8:00  The meeting adjourned at 10:15 a.m. on ai motion by Commissioner Pitcher and  12 seconded by Commissioner Bell. Voting was unanimous with Commissioners Becker, Bell, 13 Irvine, Knight, Pitcher, and Summers and Councilman Higginson voting "aye".  Paul C. Summers, CHAIRMAN GRepleser  Page 6 of6