1 2 3 4 5 6  MINUTES OF THE REGULAR MEETING OF THE THE BOUNTIFUL CITY POWER COMMISSION  March 22, 2022-8:00 a.m. Those in Attendance  7 Power Commission 8 Susan Becker, Acting Chairman 9 Dan Bell 10 Richard Higginson, City Council Rep 11 David Irvine 12 John Marc Knight 13 Jed Pitcher 14 15 16 Visitors 17 Julie Christensen 18 Tyson Beck 19 20 Excused 21 Paul Summers, Commissioner 22 23 WELCOME 24 26 28  Power Department Allen Johnson, Director Jay Christensen Alan Farnes David Farnes Jess Pearce Luke Veigel Tyrone Hansen Recording Secretary Nancy Lawrence  Chairman Becker called the meeting to order at 8:00 a.m. and welcomed those in  25 attendance. Commissioner Bell offered the invocation.  27 MINUTES- FEBRUARY22.2022  Minutes of the regular meeting of the Bountiful Power Commission held February  29 22, 2022, were presented, and unanimously approved on a motion made by Commissioner 30 Pitcher and seconded by Councilman Higginson. Commissioners Becker, Bell, Irvine, 33 BUDGET REPORT - YEAR-TO-DATE 7-MONTH PERIOD ENDNG 31 JANUARY 36 period ended 31 January 2022, noting that it is final. Total Revenues YTD were 37 $17,544,607 below its HAB by $(58,061). Major items above their HABs were Electric 38 metered sales, above by $50,334 at 0.3% above; and Sundry Revenues which was above its 39 HAB with the collection of $19,430 of various system damage billings in November and 40 January which Dave Farnes has followed up on, and the sale of$17,828 of scrap metal in  31 Knight and Pitcher, and Councilman Higginson voted "aye".  32 34 2022 35  Mr. Christensen presented the Budget Report for the Fiscal Year-to-date 7-Month  41 January primarily from Feeder #575.  42 43  Revenues below its HAB were Contribution in Aid to Construction which was below  44 its HAB by $(118,109). This was the result of four projects which have not been completed. 45 Interest Income was also below its HAB by $(29,538) due to al lower YTD interest yield  46 0.98% actual VS 1.0% budgeted.  Page 1of5    (PC minutes March 22, 2022)  1 2 3  Total Operating Expenses YTD were $15,652,790, above its HAB by $(323,482)  4 due to the following major items: power cost expense, above its HAB $(895,068) with 5 strong Electric Metered Sales and high market prices over peak. Transformers Expense was above its HAB by $(14,606) due to high market prices and an effort to replenish inventory 7 for future needs. He credited Jim Hadlow for being pro-active in acquiring transformers, noting that he has found "opportunities" toj purchase when the market norm was that 9 companies were. not taking orders, or based on a one-year- delivery date.  10 11  Total Capital Expenditures YTD were $1,034,088 and included: $92,906 for BCLP's  12 share of the City'sr new car wash facilities; $195,480 for ai new tree trimming truck; 13 $726.808 for Feeder #575; and $18,894 for Feeder #272. (This includes $616,000 paid to  14 Black and McDonald for Feeder #575).  15 16  Total Labor and Benefits Expense YTD (included in Operating Expenses YTD and  17 Capital Expenditures listed above) was $2,724,262. As of22. January 2022 (the last pay 18 period paid in the YTD period), 56.4% or $2,986,319 ofthe' TL&B budget could have been  19 spent; the actual TL&B was $262,058 below that target 22 operating expenses were partially offset by high power costs.  20 21 23 24  The Net Margin YTD was $857,729, as on-budget revenues plus many low  Total cash and cash equivalents were ai net $20,477,832 at month end, up $670,453  25 from $19,807,379 on 30. June 2021, and $3,335,832 above the $17,142,000 total reserved 26 cashi requirement. He noted that inventory costs have gone up in a pro-active step of  27 acquiring materials when we can.  28 29  Commissioner Pitcher asked ifv we would need to re-state the budget and Mr.  30 Christensen affirmed that it would be re-opened in May. Mr. Johnson said that he estimated 31 that power costs would be approximately $2 million over budget. Because we. have a 32 positive margin at this time and other areas are within budget, we will need to address 33 approximately $6-700,000 over budget for the department as a whole. He also noted that the 34 Feeder 575 project was a large portion of expenses and is now complete. The budget will be 35 adjusted to use capital equipment expenditures (trucks ordered but still do not have a "build" 36 date),thus reducing capital expenditures. Followingas short discussion, Commissioner 37 Pitcher motioned to accept the budget report, Commissioner Bell seconded the motion and 38 voting was unanimous. Commissioners Becker, Bell, Knight, Irvine, and Pitcher and  39 Councilman Higginson voted "aye".  40 41  At this time, it was noted that Mr. Christensen will be retiring in April and he (Mr.  42 Christensen) introduced Tyrone Hansen who has been selected as the new 43 analyst/accountant for the Power Department. Mr. Christensen stated that he was very 44 pleased that Mr. Hansen had accepted the position and said that "he is what II had hoped 45 for". Mr. Hansen gave a briefr review ofhis past experience- - 17 years with HCA - and said  46 he was happy to be working ini the City where he lives.  Page 2 of5    (PC minutes March 22, 2022)  DIAMOND TREE EXPERTS BID APPROVAL  2  Mr. Pearce reviewed that we currently have three (3) tree crews that perform  3 powerline right-of-way clearance throughout our system: one in-house Bountiful City crew, 4 and two crews that are currently contracted by Asplundh Tree Experts. He said that Asplundh's contract ends on. June 30, 2022, and they were asked for aj proposal fora contract extension. They proposed a 24% rate increase over their current rates. Due to the 7 substantial rate increase, we: felt it necessary to go out tol bid: for the tree trimming contract. Five contractors participated in the bidding process, and it is the recommendation ofs staffto 9 award the bid to Diamond Tree Experts, low bidder, at the rate of$1150.75/hour for Crew 10 A1 and $150.75/hour for Crew A2. Tree trimming is funded from the Distribution budget. 13 power line clearance right-of-way tree trimming at $150.75 per hour or ai total of $627,120 14 per year. The contract also provides for multiple 12-month extensions at ai negotiated price 15 increase not to exceed a 4% increase per year on labor and equipment. In response to 16 questions from the Commissioners, Mr. Pearce said that Diamond has been in business for 17 20-plus years and are qualified and certified for power line clearance; they also maintain a 18 large fleet ofe equipment. Commissioner Irvine made a motion to recommend approval of 19 the low bid from Diamond Tree Experts, as presented. Commissioner Knight seconded the 20 motion and voting was unanimous. Commissioners Becker, Bell, Irvine, Knight, and  11 12  The bid specifications provide for at three-year contract effective July 1, 2022, for the  21 Pitcher, and Councilman Higginson voted "aye".  22 23  Councilman Higginson asked ifthe contract with Black and McDonald was finished  24 and how did they do. Mr. Pearce reported that they are done and that they did a fantastic 25 job. He said he would not hesitate to hire them again. Mr. Pearce then gave a briefreport 26 onl how difficult iti is to get materials needed for power line construction and repair, 27 including conduit, transformers, wire, poles, insulators-with a 2-year delivery date; and 28 trucks that no longer offer government pricing and have 2-year build dates.  29 31  30 ENCHANT POWERSALESAGREEMENT  Mr. Johnson reported that a sales agreement for the Enchant project is getting closer  32 and negotiation on reclamation and decommissioning fees is currently being worked on. It 33 is anticipated that the Enchant project could start production by October 2022, subject to 34 contract approval, with the carbon capture provision to be delayed until 2025. Itis 35 anticipated that the San Juan (coal)project (which is currently scheduled to shut down June 36 30, ,2022) will be extended through September 2022, subject to FERC approval. This would 37 be on the condition that Unit 1 would be temporarily shut down and Unit 4 would continue 38 to operate. Itis very possible that costs could go higher -3 3.5or 4 cents - but this help  39 offset the loss ofCRSP. 41 RESOURCE UPDATE 44 tol bring back 10 mW.  40 42 45  Mr. Johnson continued the resource update by noting that in June we will need to  43 determine if we want to bring IPP back in for the winter. He said he is hoping for the ability  Page 3of5    (PC, minutes March 22, 2022)  1 4 5 7 8  The Red Mesa Solar project will be delayed due to availability of solar panels and  2 will not begin commercial operation until January 2023. (This project is also impacted with  3 increased costs and there is discussion for aj possible rate increase). 6 availability ofs solar panels. Itis currently anticipated tol be at 12mW.  The Steel project will be delayed until approximately June 2023 due to lack of The Muddy Creek project is contingent on working out an agreement with Kern  9 River. There will be ai meeting on this Thursday to discuss pricing and the amount of power 10 required for the FERVO geothermal project. IPP: repowering is still scheduled to be online 11 June 2025, Coal delivery is a major problem, and iti is anticipated that only one unit can be 12 used this summer due to lack ofc coal. A brief discussion followed regarding the action oft the 13 State legislature and the advisory committee which was appointed to monitor the issues  14 associated with IPP.  15 16 18 19 21  Mr. Johnson reviewed recent actions ofthe State legislature, and the posture of  17 neighboring states that are involved with the IPP project and al brief discussion followed.  20 RECOGNIZEJAY CHRISTENSEN RETIRING  Mr. Johnson reviewed that Mr. Christensen came to BCL&P in 2000, when Enron  22 had impacted the budget dramatically, leaving a "red ink" bottom line oni monthly budget 23 reports noting that it was a challenging time for financial accountability. He expressed 24 appreciation for his diligence and honesty as he professionally fulfilled his duties.  25 26  Mr. Christensen said this has been the best jobl he has every had, making it difficult  27 to leave. However, he said "it is time to spend time with my wife, focus on church service, 28 traveling, reading, and musical performing". He then read the letter which was given to Mr. 29 Johnson announcing his plan to retire wherein he expressed appreciation for being part ofa 30 great team. He said hel knew ofr no place where he could have had this same opportunity and 31 expressed sincere appreciation for his co-workers at BCL&P, other Bountiful City staff, and 32 the Power Commission. The Commissioners each expressed their appreciation for Jay's 33 dedicated, professional service and wished him well in his new endeavors. 35 Thefollowing items were included. in the packet, but not discussed in the meeting:  34 36 38 39 40 41 42 44  37 POWER SYSTEMS OPERATIONS REPORT  a. January 2022 Resource Reports b. February 2022 Lost Time/Safety Reports c.February 2022 Public Relation Reports d. January 2022 Outage Reports  43 OTHER BUSINESS  Commissioner Irvine noted that the Commission members should give themselves: a  45 pat on1 the back for their good judgement in selecting the current vice-chairman for the group 46 and he thanked Commissioner Becker: for her expertise in chairing this meeting.  Page 4 of5    (PC, minutes March 22, 2022)  NEXT POWER COMMISSION  2 3 a.m. 4 5 ADJOURN 6 9 10 11 12  The next meeting of the Power Commission will be held on April 26, 2022, at 8:00  The meeting adjourned at 9:05 a.m. on ai motion by Councilman Higginson and  7 seconded by Commissioner Bell. Voting was unanimous with Commissioners Becker, Bell,  8 Irvine, Knight, and Pitcher, and Councilman Higginson voting "aye".  hsant Becker Susan Becker, ACTING CHAIRMAN  Page 5of5