MINUTES OF THE JOINT MEETING OF THE BOUNTIFUL CITY COUNCIL POWER COMMITTEE AND THE BOUNTIFUL CITY POWER COMMISSION 2 3 4 5 6 7 April 13,2021- - 8:00 a.m. Those in Attendance 8 Power Commission 9 Paul Summers, Vice-Chairman 10 Susan Becker* 11 Dan Bell* 12 Richard Higginson, City Council Rep. 13 David Irvine* 14 John Marc Knight 15 16 Mayer and City Council 17 Randy Lewis, Mayor 18 Kate Bradshaw, Councilwoman 19 Kendalyn Harris, Councilwoman 22 Gary Hill, City Manager* Power Department Allen Johnson, Director Jay Christensen Alan Farnes* Jess Pearce* Luke Veigel* Recording Secretary Nancy Lawrence 20 21 Other 24 25 Excused 27 30 31 WELCOME 32 34 invocation. 35 36 23 Galen Rasmussen, Assistant City Manager 26 Jed Pitcher, Power Commission, Chairman 29 COVID-19 guidelines and restrictions. 28 *Attended electronically via Zoom, Meeting #957-7316-2026, in conformance with Vice-Chairman Summers called the meeting to order at 8:00 a.m. and welcomed 33 those in attendance. Allen Johnson took roll call. Commissioner Summers offered the Mr. Johnson took ai few minutes to share with the group an' "event" that happened 37 yesterday in Bountiful. He showed a video of a teenager being Tescuedremoved" from the 38 top ofal BCL&P power pole. The young man (16: years old) had climbed the pole, threading 39 himselfthrough three energized lines, for the purpose oft taking aj photo from the top. The 40 Police Department contacted the Power Department, the lines were de-energized, and the 41 subject was brought safely down via a bucket truck. This resulted in an outage ofar rather 42 large area oft the City, but, thankfully and luckily, with no injuries. 43 45 44 BUDGET PRESENTATION Mr. Christensen presented the Bountiful City Power Department FY 2021-2022 46 Proposed Budget, balanced at $31,130,455 with no changes to rates, fees, or deposits. He Page 1of6 (PC minutes April 13, 2021) briefly reviewed that the department serves 17,1501 total customers, the composition of 2 power: resources, and the electrical system, which includes 6 substations, 42 miles of46KV 3 transmission lines, 87 miles of15KV overhead distribution lines, 120 miles of15KV 4 underground distribution lines, and 75 miles of street light circuits. The major roles and 5 critical functions of the department are to (1) ensure the safety ofeveryone that interacts with the system; (2) buy and generate electricity at economical prices; (3) deliver electricity 7 tor residential, commercial, and industrial customers; and (4) provide long-term reliable electric service, which is the product of long-term planning, budgeting, and project 9 completion. 10 11 The major fiscal year priorities are: (1) add a 3-person line crew and necessary 12 equipment, tools, and safety gear; (2) upgrade feeders #575, #576, #272, and #373; (3) begin 13 replacement and upgrade oft the Echo hydro's control system (a two-year project); and (4) 14 acquire power: resources to stabilize the cost of power and increase "green" and carbon-free 15 resources. 16 17 The proposed budget includes: Operating Revenue at $28,261,095, down $(81,798) 18 from the current year; Operating Expenses/Personne! Services at $5,291,294, up $581,850 19 (which includes the additional 3-man crew, COLA of2.0%, an increase in medical 20 insurance rates, merit increases for 14 employees, and market adjustments for 19 employees. 21 Total employees are proposed at 37 full-time (up 3) and 5 part-time. Commissioner 22 Summers asked if the department would be able to find three new employees (linemen) and 23 Mr. Johnson explained that they are hopeful of finding younger, less-experienced workers, 24 with the hope that current experienced employees who might otherwise leave the department 25 can be retained through the salary market adjustments proposed. 26 27 Continuing with the proposed budget, Operating Expenses/Operations and 28 Maintenance is at $20,166,256, up $650,143 and includes costs for natural gas, the Echo 29 Hydro major repair, power purchase from San Juan and UAMPS, and Distribution expenses. 30 Alan Farnes reviewed the proposed upgrade for the Echo hydro, noting that this year's 31 expenses are focused on engineering required to replace the 35-year-old control system. 32 The full upgrade will include programmable controller, breakers, relays, hydraulics, 33 synchronizers, and batteries and is scheduled for completion in the winter of 2023. 36 maintenance of the distribution system. He said there are 3,086 poles that need to be 37 replaced and with current resources, this will take 27 years. The poles needing to be 38 replaced are approximately 50 years old and will not last another 27 years. Consideration 39 was given tol hiring a contractor; however, that would be more costly than the option of 40 adding another crew. The 264,000 feet of bare concentric underground cable which was 41 installed from 19701 to 1986 has al life expectancy of20 years. With current resources, it 34 35 Mr. Pearce reviewed that an additional crew is needed toj provide on-going 42 would take an additional 20+ years to replace this cable. 43 44 Ins summary, Mr. Pearce said that ai new 3-person line crew, with equipment, 45 materials, tools, and safety gear will increase the capacity to replace poles and underground 46 cable, will provide additional manpower for emergencies, be less expensive than a contract Page 2 of6 (PCminutes April 13, 2021) crew, and improve maintenance over the long term. He also noted that productivity will 2 increase with training and experience. He expressed appreciation to Mr. Hill and Shannon 3 Cottam for the help in performing ai market salary adjustment study. 4 5 Continuing with the proposed budget, Mr. Veigel reviewed Capital Expenditures 6 proposed at $1,848,000, down $2,472,000. He presented photographs ofe each project and 7 described the work that will be done. These upgrades include wood and steel poles, 8 overhead distribution cable, and underground improvements. Included in Capital 9 Expenditures is $200,000 for JRCA to evaluate site development options for the 10 Oftice/Warehouse site; maintenance and equipment vehicles at $398,000; and feeder 11 upgrades as follows: Feeder #575, $450,000; Feeder #272, $200,000; Feeder #576, 12 $140,000; Renaissance Distribution, $70,000; Feeder #373, $80,000; Stone Creek Phase 4 13 Distribution, $50,000; and $60,000 for Street Lights. 14 15 Continuing with the proposed budget, Mr. Christensen reviewed Operating 16 Transfers In of$2,562,235, as follows: $1,212,235 amortize San Juan power plant 17 intangible asset; $200,000 buildings security wall, paving, and landscaping; $200,000 18 Distribution Systems begin remote: meter collector system; $750,000 Echo hydro to begin 19 controls upgrade; $200,000 Distribution System Feeder #272 upgrade. Operating transfers 20 out to the general fund is budgeted at $(2,523,370), resulting in a net transfer into the Power 21 Department of$38,865. Mr. Christensen also reviewed the 10-year Capital Expenditures 22 plan of$36,038,000.00. 23 24 In summary, Mr. Christensen reported that iti is the staff recommendation to approve 25 the proposed balanced Fiscal Year 2022 budget in the amount of $31,130,455 (with no 26 changes to Rates, Fees, or Deposits). This proposed budget includes adding a 3-person line 27 crew and necessary equipment, and continues to emphasize maintenance and upgrades of 28 transmission, distribution, and street light systems. 29 30 Following a brief discussion, Commissioner Knight made ai motion to approve 31 BCLP's Proposed FY: 2022 Budget as presented and discussed to send to the Power 32 Committee. Councilman Higginson seconded the motion which carried unanimously. 33 Commissioners Becker, Bell, Irvine, Knight and Summers, and Councilman Higginson 34 voted "aye". 35 36 The Power Committee then voted to recommend approval oft the Proposed FY 2022 37 balanced budget on a motion made by Mayor Lewis and seconded by Councilwoman Harris. 38 Voting was unanimous withl Mayor Lewis and Councilpersons Harris and Higginson voting 39 "aye". 40 41 Commissioner Summers applauded the efforts ofl Mr. Johnson and the Power 42 Department staff for the successful operation oft the "complicated and expensive power 43 system", and acknowledged the great benefit it is to the citizens of Bountiful. In turn, Mr. 44 Johnson expressed gratitude for the support oft the elected officials and those in the past who 45 have led, guided, and supported this operation. Mayor Lewis then expressed appreciation Page 3 of6 (PC, minutes April 13, 2021) for the employees oft the Power Department and the great work that they do and the Power 2 Committee meeting was adjourned at 9:10 a.m. 3 4 5 7 6 MINUTES-MARCH 23,2021 Minutes of the Regular Meeting oft the Bountiful Power Commission held March 23, 2021 were presented and unanimously approved as written on ai motion made by 9 Commissioner Irvine and seconded by Commissioner Becker. Commissioners Becker, Bell, 10 Irvine, Knight and Summers, and Councilman Higginson voted "aye". 12 BUDGET REPORT-) YEAR-TO-DATE 8-MONTH PERIOD ENDED2 28 11 14 13 FEBRUARY 2021 Mr. Christensen presented the Budget Report for the Fiscal Year-to-date (YTD)8- 15 month period ended February 2021. He referred to the detailed report in the packet which 16 addresses the Historical Budget, FY 2021 estimates for Electric Metered Sales, Air Products, 17 and UAMPS Power Costs and the 20101 Bond and Interest Earned on Rate Stabilization. It 18 was noted that Wind Event Costs (September 8, 2020 event) were estimated at $700,838 and 19 includes labor, materials, equipment, and 3rd party costs for outside crews and contractors. 20 Bountiful City, BCLP, and numerous other Utah government entities are in the process of 21 filing a claim for reimbursement from the Federal Emergency Management Agency 22 (FEMA). 23 24 Total revenues YTD were $28,839,189, above its HAB by $293,300. Major items 25 above or (below) budget included: Electric Metered Sales, above its historically allocated 26 budget (HAB) by $362,176; and Air Products income, below its HAB by $(171,634) with an 27 average load factor of51.8 percent. (Additional detail inj packet report). 28 29 Total operating expenses YTD were $25,905,022, below its HAB by $1,387,133. 30 Major items below their HABs included: Power Cost Expense, below by $759,042, due to 31 careful purchasing and scheduling ofj power resources and selective use oft the three turbines; 32 Street Light expense, below by $131,388; and Substation Expense, below by $140,877, due 33 to timing differences. (Additional detail in packet report). 34 35 Total Capital Expenditures YTD were $685,642 and included major items (excluding 36 labor) of$ $255,430 for a new double bucket truck; $292,128 for feeder #575; $32,129 for 37 The Cottages on Main St. $24,991 for the Renaissance Center; $24,021 for feeder #272; 38 $15,509 for 500 W. Orchard; and $14,498 for the 4001 N. Pump. 39 40 Total Labor and Benefits Expense YTD (included in Operating Expenses YTD and 41 Capital Expenditures listed above) was $3,013,252. Asof201 February 2021, (the last pay 42 period in the YTD period), 64.4% or $3,032,108 of the TL&B could have been spent and the 43 actual TL&B was $18,856 below that target. 44 45 The Net Margin YTD was $2,248,526 with high EMS, low power costs, and low 46 other operating costs. Page 4 of6 (PCI minutes. April 13, 2021) 1 2 5 6 Total cash and cash equivalents, $19,496,910, were down $(7,068,558) from 3 $26,565,468 at 30. June 2020. The Net Margin and the bond payoff were significant factors 4 in this item. Itis the goal oft the City to have 180 days of operating cash on hand. 7 Report, Commissioner Bell seconded the motion and voting was unanimous. 8 Commissioners Becker, Bell, Irvine, Knight and Summers and Councilman Higginson voted Following a brief discussion, Councilman Higginson motioned to accept the Budget 9 "aye". 10 12 11 TRANSFORMER PURCHASE APPROVAL. Mr. Veigel reviewed that the inventory ofthree phase pad mount transformers is 13 running low and needs to be replenished. The transformers willl be used to replace 14 transformers that have been used on our system. Invitations to bid were sent to two major 15 suppliers and it is recommended by staff that the low bid from Anixter Power Solutions (Salt 16 Lake City) in the amount of $43,238 (with an 18-20 week delivery) be approved. Thel bid 17 includes: 18 19 20 21 22 1( (ea) 75 KVA 120/208 three phase pad mount 1( (ea) 150 KVA 120/208 three phase pad mount 2 (ea) 300 KVA 120/208 three phase pad mount Commissioner Becker motioned to accept the recommendation of staff to award the 23 bid to Anixter Power Solutions (ERMCO) for four (4) transformers for the sum of $43,238; 24 and to recommend this purchase to the City Council. Commissioner Irvine seconded the 25 motion and voting was unanimous. Commissioners Becker, Bell, Irvine, Knight and Summers, 26 and Councilman Higginson voted "aye". 27 29 28 COVIDUPDATE Mr. Pearce reported that the Department continues to maintain a status quo posture 30 related to COVID. There are currently no infections and numerous employees have received 31 or are in the process of getting their vaccination. He noted that the City Council will have a 32 Work Session to discuss future City protocol related to COVID. 33 35 37 39 41 42 43 44 45 34 RESOURCE UPDATE Mr. Johnson noted that no UAMPS-related meetings have been held and he will have 36 more information at the next Power Commission meeting. 38 The following items were included in the packet, but not discussed ini the meeting: 40 POWERSYSTEMS! OPERATIONS REPORT a. February 2021 Resource Reports b. March 2021 Lost' Time/Safety Reports c. March 2021 Public Relation Reports d. February 2021 Outage Reports 46 OTHER BUSINESS Page 5of6 (PC minutes. April 13, 2021) 1 3 4 5 7 8 9 ADJOURN 10 13 14 15 16 17 Mr.. Johnson reminded the Commissioners of the work meeting with the City Council The APPA. June Conference (June 20-23, 2021) will be held live in Orlando, Florida. The next meeting of the Power Commission will be held on May 25, at 8:00 a.m. The meeting adjourned at 9:20 a.m. on ai motion by Councilman Higginson and 2 on April 27, 2021 for the purpose of discussing solar metering and invited them to attend. 6 NEXT POWER COMMISSION 11 seconded by Commissioner: Becker. Voting was unanimous with Commissioners Becker, 12 Bell, Irvine, Knight and Summers and Councilman Higginson voting "aye". Paul Summers, VICE CHAIRMAN GAEN Page 6 of6