I 2 3 4 5 6  MIINUTES OF THE REGULAR MEETING OF THE THE BOUNTIFUL CITY POWER COMMISSION  November. 23, 2021 -8 8:00 a.m. Those in Attendance  7 Power Commission 8 Jed Pitcher, Chairman 9 Susan Becker 10 Dan Bell 12 David Irvine 13 14 Absent 15 John Marc Knight 16 Paul Summers, Excused 17 18 WELCOME 19 21 23  Power Department Allen Johnson, Director Jay Christensen Alan Farnes David Farnes Jess Pearce Luke Veigel Recording Secretary Nancy Lawrence  11 Richard Higginson, City Council Rep.  Chairman Pitcher called the meeting to order at 8:00 a.m. and welcomed those in  20 attendance. Commissioner Becker offered the invocation.  22 MINUTES-0 OCTOBER 26, 2021  Minutes ofthe regular meeting ofthe Bountiful Power Commission held October 26,  24 2021, were presented, and unanimously approved as corrected on a motion made by 25 Commissioner Becker and seconded by Commissioner Irvine. Commissioners Becker, Bell, 28 BUDGET REPORT - YEAR-TO-DATE 3-MONTH PERIOD ENDNG SEPTEMBER 31 Month period ended 30 September 2021, noting that it is final. Chairman Pitcher asked if 32 there was any new information on the wind event and Mr. Christensen responded "No". 35 (HAB) by $301,578. Major items included: Electric Metered Sales, above its HAB by 36 $322,944 or 4.1%; Air Products, above its HAB by $15,519 with an average load factor of 37 64.3% (up slightly from 62.2% for this time last year); and Contribution in Aid to 38 Construction, below its HAB by $(52,404) with little work done YTD.  26 Irvine, and Pitcher, and Councilman Higginson voted "aye".  27 29 30, 2021 30 33 34  Mr. Christensen presented the Budget Report for the Fiscal Year-to-date (YTD): 3-  Total Revenues YTD were $8,910,452, above its historically allocated budget  39 40  Total Operating Expenses YTD were $7,413,610, above its HAB by $(341,996).  41 Power cost expense was above its HAB by $(476,928) with the higher EMS and high market 42 prices, while most of the other expenses were under their HAB and were not out ofline with  43 their budgets. 44 45  Total Capital Expenditures YTD were $114,794 and included $90,281 for BCLP's  46 share ofthe City's new car wash facilities. Ini response to a question from the Commission,  Page 10 of5    (PC minutes November. 23, 2021)  Mr. Christensen explained that this new: facility is shared by several departments, including  2 Police, Parks, Streets, and Power.  3 4  Total Labor and Benefits Expense YTD (included in Operating Expenses YTD  5 and Capital Expenditures listed above) was $1,030,393. As of18 September 2021 (the last 6 pay period paid in the YTD period), 19.7% or $1,043,762 oft the TL&B budget could have  7 been spent; the actual TL&B was $13,370 below that target.  8 9 11 power costs. 12 13 16 17  Thel Net Margin YTD was $1,382,047 at month end with high EMS (including the  10 conservative estimate), and many low operating expenses were partially offset by high  Total cash and cash equivalents were ai net $19,664,446 at month end, down  14 $(142,933) from $19,807,379 as of30. June 2021. Mr. Christensen noted that we are 15 $2,522,446 above the required restricted cash balance of$17,142,000.  Following al brief discussion about operating costs, Mr. Johnson said that we are  18 doing our best to avoid a rate increase and could delay capital expenditures tol help balance 19 the budget to offset rising power costs. Commissioner Irvine motioned to accept the Budget 20 Report, Commissioner Bell seconded the motion and voting was unanimous. 21 Commissioners Becker, Bell, Irvine, and Pitcher, and Councilman Higginson voted "aye". 24 Fiscal Year Ended June 30, 2021" was given to each Commissioner, and Mr. Christensen 25 briefly reviewed the parts of this report that relate to the Bountiful City Light and Power 26 department. He noted that the City received an Unqualified Opinion (pp 1-2) on the report, 27 the best that can be given. He called attention to the headings on page 3 (Financial 28 Highlights), page 4 (Proprietary Funds), page 5 (Government-wide Overall Financial 29 Analysis - with comparison of governmental activities vs business-type activities), and 30 pages 7 and 8 (change in net position, government VS business-type activities).  22 23  A copy of the "Bountiful City, Utah Annual Comprehensive Financial Report for the  31 32  Beginning on page 12 and continuing on pages 13 and 14, under the heading  33 "Financial Analysis of Business-type Activities", ai more detailed analysis was given. The 34 Light and Power fund was: featured under the first bullet on page 12, second arrow under #2, 35 and on the graphs on page 14. Page 20 features a table of Capital Asset Current Fiscal Year  36 Additions and includes Light and Power assets.  37 38  The Financial Statements for Proprietary Funds include columns for Light and Power  39 and are on pages 31 through 36: the Statement ofNet Position (Balance Sheet) shows Total 40 Assets and Deferred Outflows for BCLP of$68,839,361; the Statement of Revenues, 41 Expenses, and Changes inl Net Position (Income Statement) shows a Change in Net Position 42 for BCLPofS1,517,627; and the Statement of Cash Flows shows the Cash and Cash  43 Equivalents Ending Balance for BCLP of $9,063,985.  44 45  In the "Notes to the Financial Statements" beginning on page 39, BCL&P was  46 included in: Note #7 "Intangible Asset - Power Projects, and Related Contracts" on page 51;  Page 2 of5    (PC, minutes November. 23, 2021)  Note #10 "Long-Term Debt" onj page 52; Note #18: "Commitments and Contingencies" on 2 page 68; and Note #2.2. "Fund Balance and Net Position" on page 70 which discusses the  3 City's minimum unrestricted net position policy.  4 5  Lastly, the Light and Power Fund was included in the Statistical Section in Table 2  6 "Changes in Net Position" on page 99, Table 10 "Light and Power Charges for Services" on 7 page 109, Table 19 "Capital Assets Statistics by Function" onj page 118, and Table 20  8 "Operating Indicators by Program / Function" onj page 119.  9 10  Chairman Pitcher asked what share of the audit was paid by the Light and Power  11 Department, and discussion followed about the audit. Councilman Higginson noted that the 12 current auditors (Keddington and Christensen, LLC) have been used for ai number of years 13 and their knowledge of the acoumting/management systems oft the City is considered a great  14 asset. 15 16 18 20  Mr. Johnson noted at this point that Jay Christensen will be retiring in January and  17 he was praised by Chairman Pitcher as being a great asset to the department.  19 SOLAR UPDATE  Mr. Christensen referenced the Solar Customer Production & Usage Report for the  21 meeting, noting that a fourth category "Net Metering Hybrid" will bei included on future 22 reports. He said that the report has changed very little since the last meeting, with a total of 23 245 solar customers, 6 of which are commercial. The report lists Total Lost Revenue for the 24 year at $193,376.00, with average lost revenue per customer per year at $789.29.  25 27  26 TRANSFORMER BID APPROVAL  Mr. Pearce reported that our inventory of overhead and pad mount transformers is  28 running low, and bids were requested for 90 transformers (30 ea. 251 kva single phase 29 overhead, 30 ea. 50 kva single phase overhead, and 30 ea. 501 kva single phase pad mount). 30 Hei noted that transformers have been very difficult to obtain and have long delivery times. 33 recommendation that the second to low bid from Irby -1 for ABB and PPI transformers be 34 approved for $215,700.00, with a delivery date of25-2 28 weeks. The low bid was 35 $212,490.0, with a 40-45-week delivery date. He noted that "normal" delivery is 12-18 36 weeks. Commissioner asked why the costs are SO high and Mr. Pearce suggested that iti is 37 due to the steel market affected by Covid, as well as supply and demand. Discussion 38 followed about costs and delivery times affected by Covid and Mr. Pearce said that the 39 trucks which should have been delivered this month haven'teven been built yet. 40 Commissioner Bell made ai motion to recommend purchasing the transformers from Irby, as 41 presented by staff. Commissioner Becker seconded the motion and voting was unanimous. 42 Commissioners Becker, Bell, Irvine, and Pitcher, and Councilman Higginson voted "aye".  31 32  Bids were received from three vendors (one was not complete) and it is the staff  43 45  44 COVID UPDATE  Mr. Pearce reported that the single biggest problem related to COVID is Supply  46 Chain issues. One employee is currently out with COVID. He said that COVID has also  Page 3 of5    (PC, minutes November 23, 2021)  affected hiring a tree trimmer. An offer was made for aj prospective employee, who is now 2 in quarantine for COVID. Mr. Pearce said that about 75 percent oft the department has been  3 vaccinated (line crews are about 50j percent).  4 6  5 RESOURCE UPDATE  Mr. Johnson reported that IPP repowering was still on schedule for June 2025;  7 however, there has been continuing discussion from Los Angeles, and it could be that they 8 will discontinue the repowering projeçt. The next meeting (December 131) should supply 9 more information and continuance ofthe project by the municipals is being considered but 10 considered very slim. IfLos Angeles walks away from the project, there will be significant 11 dismantling costs that the cities will face. Continuance ofthe project is dependent on coal 12 which has become a significant issue due to coal contracts and complications with railroad  13 delivery. 14 15 17 schedule. 18 19  The Red Mesa solar project is still looking like it could be delayed until August 2022  16 due to unavailability of solar panels. The Steel solar project is currently reported tol be on  San Juan is still scheduled to be shut down June 2022, but picked up by the Enchant  20 project, scheduled to start production in July 2022. Wel have until the first oft the year to 21 commit on this project. The Muddy Creek project is still active, and they are still working  22 on an agreement with Kern River.  23 24  CRSP supplics 60 pcrcent of our energy in the winter and this winter (due to low  25 water levels) we are only seeing 48 percent oft this resource; the average loss to all 26 customers is 46 percent. In addition to receiving less oft this resource, the energy cost has 27 incrcased from $11.79 to $12.39 per. Kwh. We are also experiencing an increase in capacily 28 from $5.01 to $5.25 KW. Mr. Johnson said that hel has purchased an additional $405,2291 to 29 make up: for the CRSP deficiency, plus there will be an added cost of$169,550 for gas to 30 run the Plant. Hej presented more data about gas costs for December and January and 31 purchase/recall options for winter. He noted that gas prices will ease off after February. He 32 alerted the Commission that it is most likely that we will need to open the budget at the end 33 oft the year. In response to a question from Councilman Higginson, Mr. Johnson said that 34 we are buying power ini the middle ofthe night (or in other words, we are short power at all 35 time). He also noted that it will take at least two years to regain the energy that wel have lost  36 from the CRSP resource.  37 38 40  39 3100 SOUTH PROJECTUPDATE  Mr. Veigel reported that the last steel pole was set on 3100 South yesterday morning.  41 Inr response to a question from the Commission, he said that the contractor, Black and 42 McDonald, was very good to work with. He showed slides oft the project as it was being 43 constructed, showing hole depth and width and pole placement (using time-lapse 44 photography). Some of the poles were set in place via dropping them down through 45 energized lines. The weight oft the heaviest pole was 10,000 pounds (most poles weigh 46 between 9,000 and 10,000 pounds, each). The total cost for the poles was around  Page 4 of5    (PC, minutes November. 23, 2021)  $100,000.00. He said there are just ai few small things left to be done to complete the 2 project. It: should be done by the end ofnext week. Mr. Johnson estimated that the total  3 cost of the project will be approximately $1.5+ million. 5 CALENDAR/UAMPS ANNUAL MEETING  4 6  Mr. Johnson noted that the 2022 Calendar had been formally approved in the Power  7 Commission meeting last month. However, he wanted to call attention to the UAMPS 8 Annual meeting which will be held December 15, 2021, from 9: a.m. to 1 p.m. at the Marriott 9 Hotel in Salt Lake City, together with al banquet that night. The Power Commissioners (and 10 their guest) are invited to attend those meetings and he asked that they RSVPifthey would  11 like to attend. 12 14  13 IPA ANNUAL MEETING  Mr.J Johnson reviewed that the IPA. Annual Meeting will be held December 7, 2021,  15 from 91 through lunch and he asked the Commissioners to let him knowi ifthey wanted to 16 attend. (He clarified that the UAMPS member meeting, to be held in Logan in August, is  17 the meeting where routine business takes place.)  18 19. 22 24 26 27 28 29 30 32 35 37 38 8:00 a.m. 39 40 ADJOURN 41 44 45 46  Ifthe Commissioners are interested in attending the APPA National Conference in  20 Nashville, Tennessee in June, and also interested in attending the Grand '01 Opry, it would 21 be wise to make these arrangements early - in January - to take advantage of better seating. 23 The following items were included in the packet, but not discussed ini the meeting:  25 POWER SYSTEMS OPERATIONS REPORT  a. September 2021 Resource Reports b. October 2021 Lost Time/Safety Reports c. October 2021 Public Relation Reports d. September 2021 Outage Reports  31 OTHER BUSINESS  Mr.. Johnson reviewed that the BCL&P Christmas Party will be held December 10,  33 2021. He expressed appreciation for the Commissioners and said hel hoped they would be  34 able to attend the party. He asked them to RSVP Pat Wood ASAP.  36 NEXT POWER COMMISSION  The next meeting of the Power Commission will be held on January 25,2022, at  The meeting adjourned at 9:35 a.m. on ai motion by Commissioner Irvine and  42 seconded by Commissioner Becker. Voting was unanimous with Commissioners Becker,  43 Bell, Irvine, and Pitcher, and Councilman Higginson yoting "ayes.  7 Jed Pitcher, CHAIRMAN  Page 5of5