1 2 3 4 5 6  MINUTES OF THE MEETING OF THE THE BOUNTIFUL CITY POWER COMMISSION August 23, 2022-8 8:00 a.m. Those in Attendance  7 Power Commission 8 Paul C. Summers, Chairman 9 Susan Becker 10 Dan Bell 11 David Irvine 12 John Marc Knight 13 Jed Pitcher 14 15 Excused 17 18 WELCOME 19 21 23  Power Department Allen Johnson, Director Alan Farnes Tyrone Hansen Jess Pearce Luke Veigel Recording Secretary Nancy T. Lawrence  16 Richard Higginson, City Council Rep  Chairman Summers called the Power Commission meeting to order at 8:00 a.m. and  20 welcomed those in attendance. The invocation was offered by Commissioner Becker.  22 MINUTES.June! 28, 2022  Minutes of the: regular meeting oft the Bountiful Power Commission held June 28,  24 2022, were presented, and unanimously approved as written on ai motion made by 25 Commissioner Becker and seconded by Commissioner Irvine. Commissioners Becker, Bell, 28 BUDGET REPORT-YEARIODATE 12-MONTH PERIOD ENDNG3 30J JUNE 2022 30 Month period ended 30. June 2022, noting that it is preliminary. He reviewed the process of 31 using an estimate for Electric Metered Sales only, as part oft the fiscal year end process and 32 noted that the EMS estimate of $600,000.00 for July has been removed from this budget 33 report. (Air Products income, UAMPS power costs, and natural gas costs have been posted 34 to the correct month in the general ledger, which eliminated the need to use estimates for 35 them). He also explained that the FYE: 2022 receivable from FEMA of$24,121.07 for the 36 2020 Wind Event was written off because some of the original calculations submitted were  26 Irvine, Knight, Pitcher and Summers voted "aye".  27 29  Mr. Hansen presented a summarized Budget Report for the Fiscal Year-to-date 12-  37 mis-stated. 38 39  Total Revenues YTD were $28,320,626.00, below its HAB by $(2,848,694). The  40 following items were (below) their HAB as follows: Electric Metered Sales - $(78,1640); 41 Air Products Income $(4,795); Contribution in Aid to Construction $(167,955); and  42 Interest Income $(32,787).  43 44  Total Operating Expenses year-to-date were $27,541,133, below its HAB by  45 $1,780,187. Major items (above) the HABs were: Power Cost Expense - $(858,885), which 46 included high market prices in December and January and major repairs to the Echo Hydro  Page 10 of5    (PC minutes August. 23, 2022)  inN March; transmission expense $(21,043); Insurance Expense $(43,549); and 2 Amortization oft the Craig-Mona Line $(83,872), which had not been budgeted. Major 3 items below their HAB budget were Distribution Expense $516,692; Substation Expense  4 $256,427; and Contingency Expense $715,475.  5 6  Total Capital Expenses year-to-date were $$1,250,406 and included: $90,281 for  7 BCLP's share oft the City's new car wash facilities; $195,480 for a new tree trimming truck; 8 $728,260 for Feeder #575 and $230,541 for Feeder #272. Total Labor & Benefits YTD 9 expenses was $4,731,118. As of30. June 2022 (thel last pay period paid in the YTD period), 10 100% oft the TL&B budget - $5,291,294 - could have been spent; the actual TL&B was 11 $560,176 below that target. The Net Margin YTD was ($470,912), as on-budget revenues 12 plus many low operating expenses were partially offset by high power costs Total Cash and 13 Cash Equivalents were a net $20,862,630 at month end. After al briefd discussion 14 Commissioner Pitcher motioned to accept the Budget Report. Commissioner Bell seconded 15 the motion and voting was unanimous. Commissioners Becker, Bell, Irvine, Knight, Pitcher  16 and Summers voted "aye".  17 19  18 500 KVA TRANSFORMER PURCHASE. APPROVAL  Mr. Pcarcc revicwed with thc group that transformcrs continuc to bc hard to  20 purchase and the lead time is a critical factor in keeping an adequate inventory. He said 21 there are currently two 500 KVA transformers in inventory, and one oft those will be used 22 for the Renaissance project. In an effort to maintain minimum inventory, invitations to bid 23 were sent out to two major suppliers and only one was able to provide a bid. Itis the 24 recommendation of stafft to accept the bid from IRBY-ABB for one 500 KVA 208/120 25 three phase pad mounted transformer at a total cost of $29,850. Delivery is quoted at 56-58 26 weeks. Commissioner Knight motioned to support the recommendation of staff, 27 Commissioner Becker seconded the motion and voting was unanimous. Commissioners 28 Becker, Bell, Irvine, Knight, Pitcher and Summers voted "aye". 30 1100 URD CABLE PURCHASE APPROVAL  29 31  Mr. Pearce explained that the inventory of1100 URS Primary Cable as ai result of  32 planned projects this summer and the inventory needs to be replaced. The cable is a single 33 source item and Irby Electric Supply is the only vendor in the state ofUtah. Mr. Pearce had 34 al length of cable that he showed to the group. The cable has a 40-year warranty and has 35 demonstrated an 80-year life span. An invitation to bid was submitted to Irby and iti is the 36 recommendation of staff to award the bid as follows: three reels (or 4,095 feet) of1100 37 URD cable at $11.75/ft. for a total cost of$48,116.25. Commissioner Irvine motioned to 38 support the staff and recommended to City Council that this bid be accepted. Commissioner 39 Knight seconded the motion and voting was unanimous. Commissioners Becker, Bell,  40 Irvine, Knight, Pitcher and Summers voted "aye". 42 PME-11 SWITCHGEAR APPROVAL  41 43  Mr. Pearce reported that two underground dead front PME-11 switchgear are  44 scheduled to be installed this summer/fall. One oft these switchgears are always kept in 45 inventory as a backup for emergencies. This gear is a single source item, and a quote was 46 requested from Irby Electric, the only available vendor. The price for the two PME-11  Page 2 of5    (PC minutes August 23, 2022)  switchgear, fuse holders, and the fiber Crete basement is $40,562.00. This switchgear is part 2 ofal budgeted upgrade and will be placed into inventory until iti isi installed on the system. It 3 iss staff recommendation to purchase from Irby for the sum of $40,562.00. Commissioner 4 Pitcher motioned to support the staff recommendation to the City Council for this switchgear 5 purchase. The motion was seconded by Commissioner Bell and voting was unanimous. Commissioners Becker, Bell, Irvine, Knight, Pitcher and Summers voted "aye".  7 9  8 DIRECTIONAL BORING APPROVAL  Mr. Veigel explained that while doing system maintenance, there is an area on the  10 distribution system where the underground cables are direct buried. These cables are over 11 40; years old and can'tbe upgraded without digging or boring in a new conduit. There is 12 also an additional street light circuit which has failed this summer. To: minimize the 13 inconvenience to residents and limit the restoration of property, a quote has been requested 14 from Down Under Construction for directional boring services. (This company is currently 15 working in the City doing work that was previously approved). The additional work 16 consists ofal Distribution System Project and a Streetlight Project bore to install a single 17 conduit for 900 total linear feet. Mr. Veigel noted that the new lines will be installed in the 18 park strip. Approval is being requested to add $30,190 to an existing bid with Down Under 19 Construction (previously approved in the amount of $288,777). The additional add-on will  20 bring the total contract to a sum of $318,967.  21 22  This request has been reviewed by the Power Department staff and the City  23 Manager, and it is staff recommendation to approve an additional $30,190. Following a 24 briefdiscussion, Commissioner Becker motioned to support the recommendation ofs staff for 25 approval of an additional $30,190 for two underground projects to bei included in the bid of 26 Down Under Construction. Commissioner Pitcher seconded the motion which carried 27 unanimously with Commissioners Becker, Bell, Irvine, Knight, Pitcher and Summers voting  28 "aye". 29 31  30 RED MESA REVISED CONTRACT APPROVAL  Mr. Johnson reviewed that in an effort to secure a utility size solar power project for  32 the City, the City Council approved Resolution #2019-08, approving the Firm Power Supply 33 Agreement for the Red Mesa Project. This project as pert the power sales agreement has 34 claimed a force majeure due to supply chain problems re: forced labor in China. 35 Additionally, the project was no longer finançeable at the original contract price. UAMPS 36 had an option to walk away from the contract due to an anticipatory breach of contract. 37 However, finding ai replacement would result in an increased cost and up to fivey years delay 38 due to transmission restrictions and equipment availability. Therefore, it is proposed that 39 the term oft the power purchase agreement would be 25 years commencing on the revised 40 commercial operation date (COD) which is anticipated to be March 2023, but no later than 41 September 2023. The purchase price for the project is $37.00/per megawatt hour (MWH)  42 for 25 years, which includes all of the renewable energy credits.  43 44  Mr. Johnson said this amended agreement (via Resolution 2022-13) will allow us to  45 increase our renewable energy portfolio for the entire City. It will need to be backed up by 46 the existing Power Department's power plant toj provide power to residents in the afternoons  Page 3of5    (PC minutes August 23, 2022)  I and evenings. Iti is the recommendation ofs staff for the City Council to approve Resolution 2 2022-13, entitled "A RESOLUTION AUTHORIZING THE RED! MESA TAPAHA 3 SOLAR PROJECT AMENDED AND RESTATED TRANSACTION SCHEDULE 4 UNDER THE POWER SUPPLY AGREEMENT WITH UTAH ASSOCIATED 5 MUNICIPAL POWER SYSTEMS; AND RELATED MATTERS, and authorize the 6 Mayor to sign the amended Red Mesa Tapaha Solar Firm Power Supply Agreement 7 Transaction Schedule. Commissioner Pitcher motion to recommend approval of] Resolution No. 2022-13 to the City Council and to also recommend authorization for the Mayor to sign 9 the amended Agreement (as stated above). Commissioner Irvine seconded the motion which 10 carried unanimously. Commissioners Becker, Bell, Irvine, Knight, Pitcher and Summers  11 voted "aye". 12 13 RESOURCEUPDATE 14  Mr. Johnson said that ifE BCL&P wanted to get back in the Carbon Free Project it  15 would be possible, but there would be no voting rights. He discussed concerns with the 16 subscription levels, noting that Energy Northwest had planned to be aj partner, but are now 17 developing their own project. PacifiCorp will also be doing their own. Without a more 18 positive picture of subscribers, costs could be very high. Commissioner Summers 19 acknowledged that costs are ai major issue; however, he noted that some day we will need 20 that power and its affordability is not the only factor to consider. He recommended that we 21 continue to keep in touch with this as a potential future resource. Commissioner Summers  22 excused himself from the meeting at this time. (9:07a.m.)  23 24  The project is planned for a 40-year period, with two 20-year extensions. He noted  25 that NuScale will be making aj presentation and giving tours on October 11 and 12 26 (Corvallis, Oregon) and asked if any oft the Commissioners would be interested in going. If  27 so, he said he would need tol know soon.  28 29 32 33  The Enchant project is experiencing some decommissioning issues, as well as mine  30 reclamation issues. This is slowing down the shutdown process. San Juan is in the process 31 ofshutting down now and they will need to have a decision by the end of September. 34 however, duc to low watcr lcvels, it will be 3 -4 years to recover to where we have been. In 35 the meantime, we can expect to see higher rates and less availability. Commissioner Becker 36 asked ifthere was concern about getting power for this winter and he said "No", the concern 37 is cost. Al brief discussion followed regarding costs rising and how the rate structure would  As the drought continues, there will be continued changes with the CRSP resource-  38 be impacted. 39 40 43 44 45 46  The meeting adjourned at 9:30 p.m. on a motion made and seconded by  41 Commissioners Irvine and Bell, respectively. Voting was unanimous with Commissioners  42 Becker, Bell, Irvine, Knight, and Pitcher voting "aye".  Page 4 of5    (PC, minutes. August 23, 2022)  1 2 3 5 7 8 9 10 11 13 14 16 17 8:00a.m. 18 19 ADJOURN 20 23 24 25  4 Thej following items were included ini the packet, but not discussed in the meeting:  6 POWER SYSTEMS OPERATIONS REPORT  a.. May-June 2022 Resource Reports b.. June 2022 Lost Time/Safety Reports C.. June 2022 Public Relation Reports d.. June 2022 Outage Reports  12 OTHER BUSINESS  None  15 NEXT POWER COMMISSION  The next meeting oft the Power Commission will be held on September 27, 2022, at  The meeting adjourned at 9:30 a.m. on ai motion by Commissioner Irvine and  21 seconded by Commissioner Bell. Voting was unanimous with Commissioners Becker, Bell,  22 Irvine, Knight, Pitcher, and Summers voting "ayes  Paul C. Summers, CHAIRMAN PASAp  Page 5of5