MINUTES OF THE REGULAR MEETING OF THE THE BOUNTIFUL CITY POWER COMMISSION  2 3 4 5 6  June 29,2021 - 8:00 a.m. Those in Attendance  7 Power Commission 8 Jed Pitcher, Chairman 9 Susan Becker 10 Dan Bell 12 David Irvine 13 Paul Summers 14 15 Absent 17 18 WELCOME 19 21 23  Power Department Allen Johnson, Director Jay Christensen Alan Farnes Jess Pearce Luke Veigel Recording Secretary Nancy Lawrence  11 Richard Higginson, City Council Rep.  16 John Marc Knight, Commissioner  Chairman Pitcher called the meeting to order at 8:00 a.m. and welcomed those in  20 attendance. Commissioner Becker offered the invocation.  22 MINUTIS-MAY25201  Minutes oft the regular meeting oft the Bountiful Power Commission held May 25,  24 2021 were presented and unanimously approved as written on a motion made by 25 Commissioner Summers and seconded by Commissioner Becker. Commissioners Becker, 26 Bell, Irvine, Pitcher and Summers, and Councilman Higginson voted "aye". 28 BUDGET REPORT - YEAR-TO-DATE 10-MONTH PERIOD ENDED3 30  27 29 APRIL2021 30  Mr. Christensen presented the Budget Report for the Fiscal Year-to-date (YTD) 10-  31 Month period ended 30. April 2021 and is final. It was noted that wind event costs have not 32 been changed since the last report and we are waiting to hear from FEMA regarding the next  33 step. 34 35  Total revenues YTD were $32,920,579, above its HAB by $320,287. Major ritems  36 above or (below) budget included: Electric Metered Sales, above its HAB by $354,477 or 37 1.7% percent; and Contribution in Aid to Construction, above its HAB by $106,214 as a 38 result ofs several major projects. Air Products income was below its HAB by $(192,457) with  39 an average load factor of52.4% percent.  40 41  Total operating expenses YTD were $29,363,781, below its HAB by $1,909,384.  42 Major items included: Power Cost Expense, below its HAB by $1,184,454 due to careful 43 purchasing and scheduling of power resources and selective use of the three turbines; 44 Substation Expense, below its HAB by $173,278, due to timing differences; and Street Light 45 expense, below its HAB by $106,317. The transfer to the general fund was below its HAB 46 by $102,917as it did not include the EMS cstimatc but it is trucd up at the end of the year.  Page 1of4    (PC minutes. June 29, 2021)  Distribution Expense was above its HAB by $(20,353) and inçluded $295,452 of  2 unbudgeted wind expense.  3 4  Total capital expenditures YTD were $721,290. Major items, excluding labor,  5 included: $255,430 for a new double bucket truck; $293,024 for feeder #575; $32,129 for 5 The Cottages on Main St.; $24,991 for the Renaissance Center; $24,726 for feeder #272; 7 $22,568 for the Stone Creek project; $15,509 for 500 W. Orchard; and $14,498 for the 400  8 North Pump. 9 10  Total Labor and Benefits Expense YTD (included in Operating Expenses YTD and  11 Capital Expenditures listed above) was $3,735,302. Asof 17 April 2021, (the last pay 12 period in the YTD period), 79.7% or $3,754,653 oft the TL&B could have been spent and the  13 actual TL&B was $19,351 below that target.  14 15 17 18 20 21  The Net Margin YTD was $2,835,507 due tol low power costs, high EMS, and low Total cash and cash equivalents, $19,446,002, were down $(7,119,467) from Following a brief discussion, Councilman Higginson motioned to accept the Budget  16 other operating costs.  19 $26,565,468 on 30 June 2020.  22 Report, Commissioner Irvine seconded the motion and voting was unanimous. 23 Commissioners Becker, Bell, Irvine, Pitcher and Summers, and Councilman Higginson  24 voted "aye". 25 27  26 TRANSFORMER BID APPROVAL  Mr. Veigel reported that the inventory of pad mount transformers is running low, and  28 we need to purchase some to replenish it. The transformers will be used to replace damaged 29 or leaking transformers on the system and future construction projects throughout the City. 30 Bid requests were sent to three (3) major suppliers for the purchase of single phase 31 transformers as follows: (30) ea. 50 kva pad mount transformers; (10) ea. 37.5 kva single 32 overhead; and (10) ea. 50 kva single overhead. Staffr recommends that the bids from Anixter 33 Power Solutions for the Ermco overhead transformers be approved for $34,880. This is the 34 next to low bid but has an 8-week lower delivery time. It is also recommended that the pad 35 mount transformers from Irby be approved for $62,850 because those transformers are in 36 stock. Commissioner Summers motioned to support the staff recommendation for purchase 37 of the transformers, as presented. Commissioner Bell seconded the motion and voting was 38 unanimous with Commissioners Becker, Bell, Irvine, Pitcher and Summers and Councilman  39 Higginson voting "aye". 41 BORING QUOTE APPROVAL  40 42  Mr. Veigel explained that Black and McDonald has been contracted to do directional  43 boring and install conduit on several projects throughout the city and it is proposed that two 44 additional bore projects be added to this contract. The additional projects are streetlight bores 45 for burned up streetlights, located at 3001 East and 500 South and 325 West 10001 North. Black 46 and McDonald have submitted a quote to perform this work in the amount of $23,815.00. It  Page 2 of4    (PCminutes. June 29, 2021)  ist the recommendation of staff to accept this quote, bringing the total contract to $365,866.00. 2 Following a brief discussion, Councilman Higginson made a motion to recommend approval 3 of the addition to the contract, as presented and recommended by staff. Commissioner 4 Summers seconded the motion which carried unanimously. Commissioners Becker, Bell, 5 Irvine, Pitcher and Summers and Councilman Higginson voted' "aye". 7 XCHOTRANSMISSIONI LINE UPDATE/REPAIR APPROVAL/UPDATE 9 hydro-electric plant on the Echo Dam was recently damaged by a wildfire. Because our 10 department does not have the equipment necessary to reach the site and make the necessary 11 repairs (due to thet terrain), al large excavator was used by Hunt Electric. (Hunt Electric owned 12 the first excavator ofthis model in the United States, and it is one of three being used in the  6 8  Mr. Pearce reviewed that the City's 46KV line which runs from the city limits to the  13 US). 14 15  Due to the timing of repairs (replacement of a 70-ft. tangent pole and one span of  16 conductor) and the lack ofwater ini the Echo reservoir, June 8, 2021 was the last day we were 17 able to generate power from the Echo hydro. There is not enough water to generate the rest  18 oft the year. 19 20  Mr. Pearce included photographs oft the damages and explained the repairs that were  21 necessary. Hunt Electric and our crews completed all the restoration work on June 15, 2021. 22 The cost for Hunt Electrict to supply the labor and equipment to change the polei is $19,110.58.  23 This amount is under $20,000.00 and SO does not need approval.  24 26  25 COVID UPDATE  Mr. Pearce reported that our COVID status is about the same as last month (about 66  27 percent of BCL&P employees have been vaccinated) and it is estimated that when all 28 employees who are willing to get vaccinated have received their shots, that number will be 70 29 percent). Per City policy, if an employee is in the process of getting vaccinated, they are 30 eligible for 80 hours ofs sick leave for COVID - different from: regular City sick leave.  31 33  32 RESOURCE SOLAR RATE UPDATE/APPROVAL  Mr. Johnson reported that the San Juan plant is still scheduled to be shut down June  34 2022. The Enchant Project is taking San Juan over. Iti is anticipated that production will start 35 in July 2022. Draft contracts for this project are projected to be available by July 2021; 36 however, the carbon capture function at this plant has been delayed until 2025. The Muddy 37 Creek project (wasted heat from Kern River) is still in the preliminary stage, and we are 38 working on an agreement with Kern River. The Red Mesa Solar project will most likely be 39 delayed until July 2022 and the Steel project is currently reported to be on schedule (June  40 2022). 41 42  Power purchases are billed on an hourly time period, and the rate is market driven. A  43 demand charge is included with all power (including our behind the meter plant generation). 44 Mr. Johnson referred to line graphs to define power costs for June, comparing June 2020 to 45 June 2021 and pointed out that the higher temperatures have resulted in losses for power 46 purchased. He noted that use of the generation at the power plant has helped considerably in  Page 3 of4    (PC minutes. June. 29, 2021)  I reducing the deficit, as well as the practice of pre-schedulingnedging He said that the plant  2 has saved several million dollars just this month.  3 4  The proposed solar projects (Red Mesa and Steel Solar LLC) were reviewed, and Mr.  5 Johnson noted that the projected average cost for Red Mesa is 2.966 cents/kwh; the projected 6 average cost for Steel Solar is 3.145 cents/kwh. The average solar delivered cost (including 7 transmission costs and losses) is 3.87 cents/kwh. Mr. Johnson reviewed monthly customer 8 examples of solar total production for net metering customers and the excess which the City 9 purchases, which demonstrates that solar customers are being subsidized by the other 10 customers in the city. In discussion which followed, it was noted that we (BCL&P) are a 11 business and should run like a business without subsidizing customers. Mr. Johnson 12 concurred with this theory, but also pointed out that supporting solar customers and by 13 including solar in our portfolio provides green credits which we are required to have. Hes said 14 that we will continue discussion of the solar resource and rate schedule and the nuclear 15 resource at the next meeting. (Commissioner Bell was excused at 9:13 a.m.; Commissioner 18 Thef following items were included in the packet, but not discussed in the meeting:  16 Becker was excused at 9:20.)  17 19 21 22 23 24 25 27 29 31 32 a.m. 33 34 ADJOURN 35 38 39 40 41  20 POWER SYSTEMS OPERATIONS REPORT  a. April 2021 Resource Reports C. May 2021 Public Relation Reports d. May 2021 Outage Reports  b.) May 2021 Lost Time/Safety Reports (There was a brief discussion on this item).  26 OTHER BUSINESS 28 Masks will be required. 30 NEXT POWER COMMISSION  The UAMPS member conference will be held in Squaw Valley August 15-17,2021.  The next meeting oft the Power Commission will bel held on August 24, 2021, at 8:00  The meeting adjourned at 9:30 a.m. on a motion by Commissioner Summers and  36 seconded by Commissioner Irvine. Voting was unanimous with Commissioners Irvine,  37 Pitcher and Summers, and Councilman Higginson voting "aye".  CHAIRMAN    Page 4 of4