MINUTES OF THE REGULAR MEETING OF THE THE BOUNTIFUL CITY POWER COMMISSION  2 3 4 5 6  January 25, 2022-8 8:05 a.m. Those in Attendance  7 Power Commission 8 Jed Pitcher, Chairman 9 Susan Becker 10 Dan Bell  Power Department Allen Johnson, Director Jay Christensen Alan Farnes, via Zoom Jess Pearce Luke Veigel Recording Secretary Nancy Lawrence  11 Richard Higginson, City Council Rep. 12 David Irvine, via Zoom 13 John Marc Knight, via Zoom 14 Paul Summers 15 16 17 18 WELCOME 19 22 24  Chairman Pitcher called the meeting to order at 8:05 a.m. and welcomed those in  20 attendance. He acknowledged that the meeting was being broadcast via Zoom, Meeting ID: 21 8193420 3453; Passcode: 054209. Mr. Christensen offered the invocation.  23 NUTPS-ROYPIBRINET  Minutes oft the regular meeting ofthe Bountiful Power Commission held November  25 23, 2021, were presented, and unanimously approved as amended on ai motion made by 26 Councilman Higginson and seconded by Commissioner Becker. Commissioners Becker, 27 Bell, Irvine, Pitcher and Summers, and Councilman Higginson voted "aye".  28 30  29 ELECTION FOR CHAIRMAN- VICECHAIRMAN  Mr. Johnson congratulated both Dan Bell and Jed Pitcher who were unanimously  31 voted in for another 4-year term on the Power Commission beginning January 2022. He 32 then stated that it was time to elect ai new chairman and vice chairman for the Power 33 Commission and he opened the floor for nominations, with a reminder that Commissioner 34 Pitcher (current chairman) and Commissioner Summers (current vice-chairman) could be 35 voted in to these positions. Commissioner Pitcher declined this nomination, and several 36 other attempts were made to nominate new officers, but these motions failed for lack of 37 action and withdrawal of the nominations. Commissioner Irvine made the recommendation 38 to declare Commissioner Summers as chairman and Commissioner Becker as vice chairman 39 by acclamation. Mr. Johnson recognized this as a substitute motion and Councilman 40 Higginson seconded the motion. Commissioner Pitcher was recognized for his lengthy 41 service on the Power Commission (30 years). The meeting continued under the direction  42 and action oft the newly elected Chairman, Paul Summers.  43 44 45  Page 1 of5    (PCI minutes. January 25, 2022)  BUDGET REPORT-Y YEAR-TO-DATE: 5-MONTH PERIOD ENDNG30  2 NOVEMBER, 2021  3  Mr. Christensen presented the Budget Report for the Fiscal Year-to-date 5-Month  4 period ended 30 November 2021, noting that it is final. He reviewed that Bountiful City 5 Light and Power received a $473,348 partial payment from the Federal Emergency 5 Management Agency (FEMA), based on a lot of documentation from of costs identified for 7 the September 8, 2020 high wind event. This amount did not include some labor and equipment items that are still being reviewed, nor did iti include the damage to the yellow  9 storage shed which has not yet been resolved.  10 11  Total Revenues YTD were $13,005,309, above its historically allocated budget  12 (HAB) by $176,649. Major items above their HABS included: Electric Metered Sales, 13 above its HAB by $240,585 or 2.1%; Air Products, above its HAB with ai n average load 14 factor of61.6% (up from 60.3% for this time last year); and Street Light income, above its 15 HAB by $14,608 because of billing delays in the. July's of prior years. Contribution in Aid 16 to Construction was below its HAB by $(84,203); and Interest Income was below its HAB 17 by $(16,572) as the average interest yield at 0.84% was slightly lower than the 1.0%  18 budgeted. 19 20  Total Operating Expenses YTD were $10,840,517, below its HAB by $(62,265)  21 due to the following major items: power cost expense $(233,592) was above its HAB with 22 strong Electric Metered Sales and high market prices over peak; Insurance Expense was 23 above its HAB by $(43,403) due to a higher-than-norma annual payment. All other 24 expense accounts were below their HAB's, and Mr. Christensen noted that none of thesc  25 accounts were out of line with budget.  26 27 30 31  Total Capital Expenditures YTD were $414,261, including $92,906 for BCLP's  28 share of the City's new car wash facilities; $195,480 forai new tree trimming truck;  29 $106,981 for feeder #575; and $18,894 for feeder #272.  Total Labor and Benefits Expense YTD (included in Operating Expenses YTD and  32 Capital Expenditures listed above) was $1,771,898. Asof13 November 2021 (the last pay 33 period paid in the YTD period), 32.9% of$1,739,604 oft the TL&B could have been spent;  34 the actual TL&B was $(32,295)slightly above that target.  35 36  The Net Margin YTD was $1,750,531, as high EMS (including the conservative  37 EMS estimate) and many low operating expenses were partially offset by high power costs. 38 Hei noted that this margin is expected to decrease significantly with high power costs in 39 December and January and the completion of the feeder #575 project.  40 41 44 45  Total cash and cash equivalents were ai net $22,077,918 at month end, up $2,270,539  42 from $19,807,379 at 30. June 2021, and $4,935,918 above the $17,142,000 total reserved  43 cash requirement.  Following al briefdiscussion about operating costs, Mr. Johnson said that we are  46 doing our best to avoid/delay ai rate increase and could delay capital expenditures to help  Page 2 of5    (PC minutes January 25, 2022)  balance the budget to offset rising power costs. Commissioner Pitcher motioned to accept 2 the Budget Report, Councilman Higginson seconded the motion and voting was unanimous. 3 Commissioners Becker, Bell, Irvine, Pitcher, and Summers, and Councilman Higginson  4 voted "aye". 5 7  6 ECHOTHRUST BEARING MODIFICATION  Alan Farnes reported that last October, Integrated Power Services was. hired to  8 remanufacture the thrust bearings for all three turbine generators at the Echo hydroelectric 9 power plant. While they were: removing the thrust bearings, they identified some additional 10 maintenance work and quoted a cost of $28,821.00 for this additional work. Iti is the staff 11 recommendation to approve the additional repair work quote from Integrated Power 12 Services. Ifapproved, this will bring the total cost for the thrust bearing repairs at Echo to 13 $290,689. Commissioner Pitcher made ai motion to approve the $28,821.00 quote, 14 Commissioner Becker seconded the motion and voting was unanimous. Commissioners 15 Becker, Bell, Irvine, Pitcher, and Summers, and Councilman Higginson voted "aye".  16 18  17 TRANSFORMER BID APPROVAL  Mr. Pearce reviewed that transformers are beginning to be hard to purchase and their  19 lead times are becoming ai factor in keeping an adequate inventory (in March 2021, there 20 was an 18-week delivery, and the cost was approximately 20% less). It was determined that 21 we needed to order 2 (ea) 300 KVA three phase transformers now to replace inventory that 22 we anticipate using to for system repair and maintenance in the next couple of months. Bid 23 requests were sent to three (3) major suppliers and one bid was received from Anixter Power 24 Solution - for Ermco transformers in the amount of $32,900 with a 40-45-week delivery. 25 (He noted that there is as much as a 2-year lead time on some transformers and some 26 companies will not take an order because they are hesitant to quote a price based on the  27 volatility of the market).  28 29  Discussion followed regarding the supply chain problems associated with Covid, and  30 Mr. Pearce reviewed that our inventory was built up in anticipation of procurement issues. 31 Councilman Higginson thanked the staff for their forward-thinking approach in keeping 32 folks with electrical power in Bountiful. He then made a motion to approve the bid for2 33 transformers from Anixter for the sum of $32,900. Commissioner Pitcher seconded the  34 motion and voting was unanimous. 36 COVID UPDATE  35 37  Mr. Pearce reported that since our last Power Commission meeting, seven (7)  38 employees have either had Covid or been exposed toi it, thus affecting their work status. No 39 one was extremely sick or hospitalized. Within the Department we are following 40 CDC/Davis County guidelines. We are allowing fully vaccinated exposed persons to come 41 to work. Persons who test positive are isolated for 5 days and then wear ai mask for five 42 days when they come back to work. A short discussion followed regarding personal  43 experiences with Covid. 45 RESOURCE UPDATE  44  Page 3 of5    (PC minutes. January 25, 2022)  1  Mr. Johnson reported that in addition to CRSP resources being restricted and more  2 expensive, another major blow by the restriction oft this resource is the loss of ability to 3 schedule power with very little patterning ability compared to what we have had in the past. 4 He suggested that Lake Powell will not recover for at least two years. He did note that Echo  5 and Pineview (smaller reservoirs) can come back sooner.  6 7 10 11  The Red Mesa solar project will be delayed due to Covid - they cannot get panels.  8 The STEEL solar project should be on line in December oft this year. However, because 9 they are blending two projects, they are exploring the option of delaying six months. 12 the November report, and nol hybrid net metering customers. The current report is basically 13 the same as our previous meeting. Mr. Pearce reported that there are 20 applications in 14 limbo who are asking for hybrid net metering. Most customers are going back to net  At this point, Mr. Christensen reported that Bountiful has 246: solar customers, as of  15 metering. 16 17  Mr. Johnson then reported that the San Juan project is scheduled to shut down June  18 30, 2022. The Enchant project is still a coal-fired project, taking over the San Juan resource 19 and using a grant from the Federal Government to do carbon capture. Wel have made a 15- 20 year agreement with them to get 10 Mw of power from them at 3.5 cents at the bus or 4.5 21 cents delivered. He then reviewed the basics of this agreement. Ifthis project comes 22 through, it will make a positive impact on our resource package and our budget.  23 24  UAMPS is still working on1 the Muddy Creek project (reclaiming power from the  25 Kern River pipeline), but it is not moving very quickly. The IPP project has been adversely 26 affected by Senate Bill 2002. This created issues related to using coal and an attempt to 27 force Utah customers to purchase Utah gas VS Wyoming gas. Mr. Johnson discussed in 28 length the issues related to IPP and the fact that the loss ofthis resource could result in being 29 $2 million over budget this year. This makes it quite likely that we will be looking at a rate  30 increase for the fiscal year beginning 01 July 2022.  31 33  32 2022 CALENDAR  Mr. Johnson brought attention to the 2022 Calendar Year Power Commission  34 meetings which had previously been approved and noted that the date for the joint meeting 35 oft the City Council and Power Commission to discuss the budget has been changed to April 36 26, 2022, at 8:00 a.m. This meeting was previously scheduled for April 10, 2022. 38 Thefollowing items were included in the packet, but not discussed in the meeting:  37 39 41 42 43 44 45 46  40 POWER SYSTEMS OPERATIONS REPORT  a. October-November 2021 Resource Reports b. December 2021 Lost Time/Safety Reports C. December 2021 Public Relation Reports d. November 2021 Outage Reports  Page 4 of5    (PC, minutes. January 25, 2022)  OTHER BUSINESS None  2 3 4 6 7 8:00a.m. 8 9 ADJOURN 10 13 14 15 16  5 NEXT POWER COMMISSION  The next meeting ofthe Power Commission will be held on February 22, 2022, at  The meeting adjourned at 9:30 a.m. on a motion by Commissioner Becker and  11 seconded by Councilman Higginson. Voting was unanimous with Commissioners Becker, 12 Bell, Irvine, Pitcher, and Summers,andc Councilman Higginson,voting "aye".  ARE Paul Summers, CHAIRMAN  Page 5 of5