MINUTES OF THEJOINT MEETING OF THE THE BOUNTIFUL CITY POWER COMMISSION AND THE CITY COUNCIL POWER BUDGET COMMITTEE  2 3 4 5 6 7  April 26, 2022 - 8:00 a.m. Those in Attendance  8 Power Commission 9 Susan Becker, Acting Chairman 10 Dan Bell* 11 Richard Higginson, City Council Rep 12 David Irvine** 13 John Marc Knight 14 Jed Pitcher 15  Power Department Allen Johnson, Director Alan Farnes David Farnes Tyrone Hansen Jess Pearce Luke Veigel Recording Secretary Nancy Lawrence  16 City Council Power Committee 17 Kendalyn Harris, Mayor 18 Cecilee Price-Huish 20 Other City Officials 21 Kate Bradshaw, Councilwoman 22 Millie Bahr, Councilwoman 23 Gary Hill, City Manager  19  24 Galen Rasmussen, Assistant City Manager 25 26 Excused 27 Paul Summers, Commissioner 28 30. **Attended via Cell Phone 31 32 WELCOME 33 36 38  29 *Attended via Zoom Meeting Meeting ID #849-3181-8719  Chairwoman Becker called the Power Commission meeting to order at 8:00 a.m. and  34 welcomed those in attendance. Councilman Higginson then called the Council Power 35 Budget Committee to order. An invocation was offered by Councilman Higginson.  37 HIDGEIPRESENTATON  Mr. Hansen reported that the proposed total balanced budget for the Power  39 Department FY 2022-2023 is $30,601,221, which includes a 3 percent rate increase, but no 40 changes to Fees or Deposits. Bountiful City Light and Power (BCL&P) provides electrical 41 power to approximately 17,244 total customers (15,585 residential, 1,658 commercial, and 1 42 industrial). The total system includes six substations, 42 miles of 46KV transmission lines, 43 901 miles of15KV overhead distribution lines, 130: miles of15KV underground distribution  44 lines, and 75 miles of street light circuits.  45  Pagelof7    (PC minutes. April 26, 2022)  1  Mr. Hansen then reviewed the power resources, which include Colorado River  2 Storage Project, Intermountain Power Project, San Juan power plant, the city owned and 3 operated natural gas-fired power plant, two city owned and operated hydroelectric projects, 4 and contracts from industry suppliers. He also noted that the major roles and critical 5 functions which drive the budget are: safety ofeveryone who interacts with BCLP's 6 electrical systems; to buy and generate at economical prices; reliable delivery to all electrical 7 customers. The priorities for the coming fiscal year are: Add a 3-person line crew and 8 necessary equipment (this item was ini the 2021-22 budget, but was not accomplished and is 9 being moved to the 2022-23 budget); upgrade feeders #574, #576, #274, and #373; begin 10 replacement and upgrade of] Echo control system; begin engineering for the Northwest 11 Substation rebuild; and acquire power resources to stabilize the cost ofp power and increase  12 "green" and carbon-free resources.  13 14  Mr. Pearce reviewed the history of BCL&P Department safety and training, noting  15 that there have been no lost-time accidents over the past four years, ai remarkable record 16 with consideration of 70,000 hours worked per: year. He reviewed the training which is 17 done regularly and reported that the BCL&P is Department ofLabor certified. Photographs 18 ofdifferent types ofv working situations related to outage restoration were shown and it was 19 noted that the system reliability on a 5-year average was .9999984 percent! 22 underground) systems, particularly as they relate to the budget and the  20 21  Mr. Pearce reviewed the transmission and distribution (both overhead and  23 maintemancehreplacement program. Discussion followed regarding the future outlook for 24 poles that need tol be replaced and issues related to supply chain. Some vendors are not 25 accepting any orders until 2024 and delivery times vary from 6 months to 50 weeks, when 26 orders are accepted. Many supply items have increased dramatically in cost with wire prices 27 increasing by approximately 35 percent. Mr. Pearce also discussed the tree trimming 28 program, which consists ofc one in-house and two contract tree crews. With three crews 29 working, it is the goal to complete one rotation through the City every three years. Diamond 30 Tree Experts has been awarded the bid for the two contract crews for the FY 2022-23 budget  31 year. 32 33  Mr. Veigel reviewed the Distribution System/ Feeder upgrades included in the  34 Budget under Capital Expenditures, as follows: Feeder #272/273, $131,000; Feeder #574, 35 $687,500; Feeder #576, $263,000; Renaissance Distribution, $70,000; Feeder #373, 36 $80,000; and Stone Creek Phase 41 Distribution, $50,000. He noted that the Stone Creek  37 project will be reimbursed to the City by the developer.  38 39  Alan Farnes presented additional capital upgrades, as follows: Echo hydro controls  40 upgrade to replace 35-year old control system, with engineering only included in this budget 41 at $420,000. This will be a 3-year project. The Northwest Substation will be re-built and the 42 design phase isi included in this year's budget - $615,000. This total project is estimated to 43 cost $ 3%to 4 million. Iti is necessary because of outdated equipment for which 44 repair/maintenance parts are no longer available and the design of the low bus is a safety 45 hazard. Capital expenditures of $2,904,500 is up $1,056,500 from the 2021-22 budget, 46 including the office and warehouse at $200,000 to evaluate site development options and  Page 2 of7    (PCminutes April 26, 2022)  M&E Vehicles at $188,000. Three vehicles were included in the 2021-22 budget, but  2 postponed due to not being available from the supplier(s).  3 4  Mr. Farnes reviewed power resources currently used and discussed how these  5 resources are being impacted by current factors - drought, supply chain, and the move 6 toward renewable resources. In summary, hydro power is down, natural gas pricing is high, 7 coal availability is low, market power is high, the Enchant resource has an undetermined 8 availability date, and solar projects have been delayed. All of these factors have a negative  9 impact on our resources.  10 11  Mr. Hansen reported that Operating Revenues are budgeted at $28,928,073, up  12 $666,978, with major increases coming from Electric Metered Sales at $25,820,799, up 13 $587,104 with a 3 percent rate increase and 0.2 percent growth. Air Products Income at 14 $2,255,0181 is up $75,962 with the 3 percent rate increase and an estimated 59 percent load 15 factor. Commissioner Pitcher asked how BCL&P budgeted rates compare with Rocky 16 Mountain rates. Mr. Hansen briefly explained the differences between the billing rate 17 structures of BCL&P and Rocky Mountain Power, and said that with the rate increase, 18 BCL&P's1 rates are still lower by 1.94 percent. Commissioner Pitcher asked how Bountiful 19 customers will be informed of the rate increase and discussion followed. In addition to the 20 rate increase being part oft the presentation at the budget hearing, it was suggested that an 21 insert be included in the utility billing statements which explains the change ofr resources 22 brought on by the drought - which is beyond our control- - and the change of allocation from  23 the Colorado River Storage Project, our basic load resource.  24 25  Operating Expenses Personnel Services is proposed at $5,370,241, up $78,947,  26 supports the additional 3-man crew, (moved forward from the 2021-22 budget), a3.0 27 percent cost ofliving adjustment, 4 percent increase for medical insurance, and merit  28 increases for eligible employees.  29 30  Operating Expenses Operations and Maintenance at $19,654,900 is down $(511,356)  31 due to a decrease in power purchased from CRSP and San Juan; however this decrease is 32 offset by an additional power purchased from UAMPS which is up $1,423,403 to replace the 33 CRSP and San Juan power; Power purchases from IPP which is up $660,908; and 34 Distribution is up $55,380 with material for the new: 3-man crew.  35 36  Net Operating Transfers at ($1,216,080) includes $1,266,000 transfer in Use of  37 Retained Earning and $(2,582,080) transfer (out) to the General Fund. The 10-year Capital 38 Plan of $36,849,500 includes NW and NE substation rebuilds, plus new: feeders, upgrades to 39 the transmission and distribution systems, street light system upgrades, and upgrades for the 40 control systems for Echo and PineView hydros (as noted earlier in the presentation), and  41 replacement ofthel No. 1 turbine at the Power Plant.  42 43  Ins summary, Mr. Hansen said it is the recommendation of staff to accept the  44 proposed FY 2023 budget, balanced at $30,601,221, which includes a 3 percent rate 45 increase, adds a 3-person line crew w/necessary equipment, and continued emphasis on 46 maintenance and upgrades oftransmission, distribution, and street light systems.  Page 3 of7    (PC minutes April 26, 2022)  Commissioner Pitcher asked what impact the proposed budget has on cash. Mr. Johnson 2 said that cash will still be above the 6-month average $18 million. Commissioner Pitcher 3 motioned to recommend approval of the proposed 2022-23 budget, as presented. 4 Commissioner Knight seconded the motion and voting was unanimous. Commissioners 5 Becker, Bell, Irvine, Knight and Pitcher, and Councilman Higginson voted "aye".  6 7  On behalf ofthe Council Power Committee, Councilwoman Price-Huish made a  8 motion to accept the recommendation of the Power Commission and approve the Proposed 9 FY2 2022-2023 Budget, as presented, and specifically to approve the 3 percent rate increase. 10 Mayor Harris seconded the motion and voting was unanimous. Mayor Harris, 11 Councilwoman Price-Huish, and Councilman Higginson voted "aye".  12 13  Members ofthe Council Power Committee expressed appreciation to the Power  14 Department staff for theiri insight, forward planning, and dedication. The budget review 15 portion oft the meeting adjourned at 9:24 a.m. on ai motion from Committee member Harris  16 and seconded by Committee member Price-Huish.  17 19  18 MINUTES-) March 22,2022  Minutes oft the regular meeting of the Bountiful Power Commission held March 22,  20 2022, were presented, and unanimously approved as corrected on ai motion made by 21 Commissioner Pitcher and seconded by Councilman Higginson. Commissioners Becker, 22 Bell, Irvine, Knight and Pitcher, and Councilman Iligginson voted' "aye". 24 BUDGET REPORT - YEAR-TO-DATE 8-MONTH PERIOD ENDNG28  23 26  25 FEBRUARY2022  Mr. Hansen presented the Budget Report for the Fiscal Year-to-date 8-Month period  27 ended 28 February 2022, noting that it is final. Total Revenues YTD were $19,736,128, 28 below its HABI by $(38,086). Major items above their HABs were Electric metered sales, 29 above by $96,809 at 0.6% above; and Sundry Revenues which was above its HAB with the 30 collection of $19,430 of various system damage billings in November and January which 31 Dave Farnes has followed up on, and the sale of$17,828 of scrap metal in January primarily  32 from Feeder #575.  33 34 37 38 39  Revenues below its HAB were Contribution in Aid to Construction which was below  35 its HAB by $(123,922). This was the result of four projects which have not been completed. 36 Air Products income was below its HAB by $(19,981) with an average load factor of 58.0%.  Total Operating Expenses YTD were $17,456,066, above its HAB by $(43,077)  40 due to the following major items: power cost expense, above its HAB $(835,208) with 41 strong Electric Metered Sales and high market prices over peak. Operating Expenses below 42 budget included Distribution Expense by $300,505; Substation Expense by $88,088; and  43 Meters Expense by $77,214.  44  Page 4 of7    (PC minutes. April 26, 2022)  1 4 5  Total Capital Expenditures YTD were $1,038,160 and included: $92,906 for  2 BCLP's share of the City's new car wash facilities; $195,480 for a new tree trimming truck;  3 $724,156 for Feeder #575; and $18,894 for Feeder #272.  Total Labor and Benefits Expense YTD (included in Operating Expenses YTD and  6 Capital Expenditures listed above) was $3,069,382. Asof19 February 2022 (the last pay 7 period paid in the YTD period), 64.1% or $3,392,227 ofthe TL&B budget could have been  8 spent; the actual TL&B was $322,845 below that target 11 operating expenses were partially offset by high power costs.  9 10 12 13  The Net Margin YTD was $1,241,903, as on-budget revenues plus many low Total cash and cash equivalents were a net $21,977,515 at month end, up  14 $2,170,136 from $19,807,379 on 30 June 2021, and $4,835,515 above the $17,142,000 total 15 reserved cash requirement. A major use ofc cash at month end compared to fiscal year-end 16 2021 was an increase of $(311,285) in inventories (T&Dinventory from $1,952,502 to 17 $2,247,631). Following al brief discussion, Commissioner Knight motioned to accept the 18 Budget Report. Councilman Higginson seconded the motion and voting was unanimous. 19 Commissioners Becker, Bell, Irvine, Knight and Pitcher, and Councilman Higginson voted  20 "aye". 21 23  22 POWER POLE PURCHASE APPROVAL  Mr. Pearce reported that our inventory of power poles is running low and needs tol be  24 replenished. He explained the pole bid specifications (Western red or yellow cedar butt 25 treated) with 20 (ea.)35' class 3 poles, 25 (ea.) 45' class 3 poles, and 5 (ea.) 45'class 1 26 poles. This is a single source bid as Stella-Jones, Tacoma, Washington is the only vendor 27 able to bid butt treated poles. The butt treated poles are preferred because they are easier to 28 climb and due many oft the ones on our system are in back yards where climbing is required. 29 Itis the staffrecommendation to approve the quote for 50 butt treated poles from Stella 30 Jones for the total sum of $42,270.00. Councilman Higginson made a motion to recommend 31 approval oft the Stella-Jones bid, as presented by staff. Commissioner Knight seconded the 32 motion which carried unanimously. Commissioners Becker, Bell, Irvine, Knight and Pitcher  33 and Councilman Higginson voted "aye". 35 1100 URD CABLE PURCHASE APPROVAL  34 36  Mr. Pearce explained that 1100 URD primary cable is also running low and needs to  37 be purchased to replenish inventory. The cable to be purchased is a 600 ampj jacketed cable 38 with one third neutral with a 40-year warranty. It is manufactured by Okonite and is a single 39 source item, sold by Irby Electric Supply. Staffrecommends: the approval oft the quote for 40 20,800 feet of1100 URD cable from Irby Electrical Supply for the total sum of $211,264.00 41 ($10.205/ft.). Commissioner Knight made ai motion to support the staff recommendation. 42 Councilman Higginson seconded the motion and voting was unanimous. Commissioners 43 Becker, Bell, Irvine, Knight and Pitcher, and Councilman Higginson voted "aye".  44  45 POWER TRANSFORMER PURCHASE APPROVAL  Page 5of7    (PC minutes. April 26, 2022)  1  Mr. Pearce explained that transformers are beginning to bel hard to purchase and their  2 lead times are becoming a factor in keeping an adequate inventory. Spccifications and an 3 invitation to bid were sent out to three (3) major suppliers, two ofwhich responded. Itis the 4 recommendation of staff to accept the low bid of $62,190: for 301 transformers--15 (ea.).37.5 5 KVA single phase Overhead and 15 (ea.) 50 KVA single phase Overhead-- from 6 Wesco/Anixter Power Solutions. Delivery is quoted at 15-25 weeks. The transformers 7 will be placed in inventory until needed. (Prior to Covid, the normal delivery time was 3 8 months). Commissioner Pitcher motioned to approve the purchase of the 30 transformers 9 from Wesco, as presented. Councilman Higginson seconded the motion. Voting was 10 unanimous with Commissioners Becker, Bell, Irvine, Knight, and Irvine, and Councilman  11 Higginson voling "aye".  12 14  13 DIRECTIONAL BORING BID APPROVAL  Mr. Veigel reported that there are several underground distribution circuits and  15 streetlight circuits throughout the system that need tol have ai new conduit, wire, and lights 16 inslalled. To minimize the inconvenience to residents and limit the restoration of property, 17 bids have been requested from contractors to install these conduits using directional boring. 18 He said there are three Distribution system projects and two Streetlight projects, and that 19 each bore consists of1 to 3 conduits, with 6,1001 total linear feet. Bids were requested from 20 five contractors and three responded. Iti is staff recommendation to approve the low bid 21 from Down Under Construction ofNorth Salt Lake in the amount of $288,777.00. The 22 work is identified int the FY 2021-22 budget and is within budget. Thc projccts will bc 23 funded from three different accounts: 575 Feeder Upgrade, 272/273 Feeder Upgrade, 24 Distribution and Streetlight. Commissioner Pitcher made ai motion to support the staff 25 recommendation and award the bid to Down Under Construction, as presented. Councilman 26 Higginson seconded the motion which carried unanimously. Commissioners Becker, Bell,  27 Irvine, Knight and Pitcher, and Councilman Higginson voted "aye".  28 30  29 ENCHANT POWER SALES AGREEMENT  Mr. Johnson explained that it was anticipated that the Enchant Power Sales  31 Agreement would be finalized and ready for consideration at this meeting. However, issues 32 related to reclamation and de-commissioning associated with the transmission from the San 33 Juan to the Enchant project are still being worked out. Iti is anticipated that this resource will  34 be available by November. 36: RESOURCE UPDATE  35 37  Commissioner Becker asked how our resources rank ini terms ofleast costly up to  38 most expensive. Mr. Johnson said the hydros are the cheapest and included in the base load. 39 However the reduction of CRSP allotment due to the drought has critically impacted power 40 cost expense. Solar is ranked next, but is not a firm source. San Juan and IPP, our: firm 41 resources, come next, and purchasing on1 the market to cover peak is the most expensive. 42 Discussion followed regarding the anticipated use oft these resources for the coming budget 15 Thefollowing items were included in the packet, but not discussed ini the meeting.  43 year. 44 46  Page 6 of7    (PC minutes. April 26, 2022)  POWER SYSTEMS OPERATIONS REPORT a. February 2022 Resource Reports b. March 2022 Lost' Time/Safety Reports C.N March 2022 Public Relation Reports d. February 2022 Outage Reports  2 3 4 5 6 8 9 11 12 a.m. 13 14 ADJOURN 15 18 19 20 21  7 OTHER BUSINESS  None  10 NEXTPOWER COMMISSION  The next meeting oft the Power Commission will be held on May 24, 2022, at 8:00  The meeting adjourned at 10:00 a.m. on a motion by Councilman Higginson and  16 seconded by Commissioner Knight. Voting was unanimous with Commissioners Becker, 17 Bell, Irvine, Knight, and Pitcher, and Councilman Higginson voting "aye".  Mserbeckes Susan Becker, ACTING CHAIRMAN  Page 7of7