1 2 3 4 5 6  MINUTES OF THE REGULAR MEETING OF THE BOUNTIFUL CITY POWER COMMISSION  March 23, 2021 - 8:00 a.m. Those in Attendance  7 Power Commission Jed Pitcher, Chairman 9 Susan Becker* 10 Dan Bell* 12 David Irvine* 13 Paul Summers 14 15 Other 16 John Marc Knight 17 20 21 WELCOME 22 24 the invocation. 25 27  Power Department Allen Johnson, Director Jay Christensen Alan Farnes* Jess Pearce* Luke Veigel* Recording Secretary Nancy Lawrence  11 Richard Higginson, City Council Rep.  18 *Attended electronically via Zoom, Meeting #936-3022-4901, in conformance with  19 COVID-19 guidelines and restrictions.  Chairman Pitcher called the meeting to order at 8:00 a.m., Allen Johnson took roll  23 call, and Chairman Pitcher welcomed those in attendance. Commissioner Summers offered  26 MINUTES-February 23,2021  Minutes oft the Regular Meeting oft the Bountiful Power Commission held February  28 23, 2021 were presented and unanimously approved as corrected on a motion made by 29 Councilman Higginson and seconded by Commissioner Summers. Commissioners Becker, 30 Bell, Irvine, Pitcher and Summers, and Councilman Higginson voted "aye". 32 BUDGET REPORT - YEAR-TO-DATE 7-MONTH PERIOD ENDED 31JANUARY 35 January 202lis final. He noted that the 2010 Bond principal and interest payments were 36 paid off as ofN November 2020 and the corresponding Federal interest expense subsidy of 37 $107,432.07 (reduced by 5.9% from the original $114,168.94) was received on 21 January 38 2021. With the payoff oft the 2010 Bond, the $5,686,971.56 rate stabilization cash was 39 moved to Cash & Investments (operating cash), and the budget for interest earned on rate 40 stabilization was included with interest income on investments (operating cash).  31 33 2021 34  Mr. Christensen reported that Fiscal Year-to-date (YTD) 2021 for. July 2020 through  41 42 45 46  The current estimate of Wind Event Costs (which were incurred in September 2020)  43 of$700,900 included: labor - $221,881; materials $87,178; equipment - $94,638; and 3rd  44 party and miscellaneous costs - $297,202.  Page 1 of4    (PC minutes March 23, 2021)  1  Total revenues YTD were $26,653,096, above its historically allocated budget  2 (HAB) by $295,209. Major items above or (below) budget included: Electric Metered 3 Sales, above its HAB by $288,743; Air Products income, below its HAB by $(108,770) with 4 an average load factor of 54.3 percent; and Contribution in Aid to Construction, above its 5 HAB by $56,104. Commissioner Summers asked what the impact would be to BCLPifAir Products were to close. Mr. Johnson explained that the scheduling for Air Products and the 7 rate they are charged take into consideration the fact that their load factor is unpredictable 8 and therefore, the impact to BCL&P would be minimal. However, he noted that Air 9 Products pays a 61 percent franchise tax to the City which would be ofmore consequence. 12 Major items (above) or below their HABs included: Power Cost Expense, below its HAB by 13 $511,837, due to careful purchasing and scheduling of power resources and selective use of 14 the three turbines; Street Light expense, below its HAB by $119,261; and Substation 15 Expense, below its HAB by $95,594 due to timing differences. Distribution Expense was 16 above its HAB by $(83,710) and included $295,000 ofu unbudgeted wind expense ($64,000  10 11  Total operating expenses YTD were $24,211,598, below its HAB by $938,856.  17 for materials plus $231,000 for 3rd party work).  18 19  Total Capital Expenditures YTD were $685,049 (the same as December 2020) and  20 included significant expenses as follows: $255,430 for ai new double bucket truck; $292,128 21 for Feeder #575; $31,015 for The Cottages on Main St. $24,991 for the Renaissance Center;  22 and $24,021 for Feeder #272.  23 24  Total Labor and Benefits Expense YTD (included in Operating Expenses YTD and  25 Capital Expenditures listed above) was $2,663,877. Asc of23 January 2021, (the last pay 26 period in the YTD period), 56.7% or $2,670,835 oft the TL&B could have been spent and the 27 actual TL&B was $6,958 (which included overtime during the wind event) below that target.  28 29 31 32 35 36  The Net Margin YTD was $1,756,450 with high EMS, low power costs, and low Total cash and cash equivalents, $18,054,804, were down $(8,510,664) from  30 capital expenditures.  33 $26,565,468 at 30. June 2020. The bond payoff was a significant factor in this item. Itis  34 the goal oft the City tol have 180 days of operating cash on hand.  Following al briefdiscussion, Commissioner Summers motioned to accept the Budget  37 Report, Councilman Higginson seconded the motion and voting was unanimous. 38 Commissioners Becker, Bell, Irvine, Pitcher and Summers and Councilman Higginson voted  39 "aye". 40 42  41 ECII ENGINEERING ERVICESAPPROVAL  Alan Farnes reviewed that last January, Electrical Consultants Inc. (ECI) was. hired to  43 produce a complete set of electronic drawings for the No. 4 (Southeast) Substation. Since 44 then, there are: several system upgrades at the same substation that need to be completed which 45 will require some engineering and design support, as well as some extensive drafting updates. 46 (This will result in some cost savings to do the engineering and drafting while ECI is  Page 2 of4    (PC minutes. March 23, 2021)  developing the new electronic drawing set). The additional work includes replacing the two 2 existing 46kV oil circuit breakers (1970's vintage) with two new gas insulated breakers, 3 upgrading the existing 2032 communications processor with a new 3530 communications processor, installing ai new SEL-2440 DPAC, and installing a bus differential relay. Some of ) this equipment has already been purchased and the remaining equipment purchase will not be as significant expenditure. The total additional cost toj provide this service is $93,984. Itis the 7 staff recommendation to approve the additional engineering services from ECI for the 8 additional amount of $93,984 for the total sum oft the ECI contract to be $169,984.  9 10  In response to a question from Commissioner Summers, Mr. Farnes explained that the  11 controls on the new breakers are different, requiring new drawings. He also pointed out that 12 thei improvements willj provide additional information for alarms which will be individualized. 13 The existing drawings are 20+ years old. Commissioner Summers motioned that the Power 14 Commission recommend to the City Council the approval ofthis expenditure, as presented. 15 Commissioner Becker seconded the motion which carried unanimously. Commissioners 16 Becker, Bell, Irvine, Pitcher, and Summers, and Councilman Higginson voted "aye".  17 19  18 1100 URD CABLE PURCHASE APPROVAL  Mr. Pearce reported that the inventory of11001 URD Primary cablei is running low and  20 needs tol be replenished. The cable will be used on several feeder upgrade projects this spring 21 and summer, including the feeder relocation on 1100 North Main and the rebuilding off feeder 22 675 on3100South. He said iti is the staffrecommendation to approve the sole source bid from 23 Codale Electric Supply for 15,600 feet of 1100 URD cable in the amount of $123,552.00. 24 Councilman Higginson motioned toi recommend approval ofthis purchase to the City Council, 25 as presented. Commissioner Bell seconded the motion and voting was unanimous. 26 Commissioners Becker, Bell, Irvine, Pitcher, and Summers, and Councilman Higginson voted  27 "aye". 28 29 COVID UPDATE 30  Mr. Pearce reported that there has been a total ofnine employees who have had Covid  31 and that some had worse symptoms than others. The department is following Covid 32 guidelines for social distancing, masks, and cleaning protocols. All employees have been 33 encouraged to get vaccinated and about 80 percent want to get their vaccines. Mr. Johnson 34 indicated that, as a department, Covid precautions will continue to be practiced until a safe  35 environment is comfortably achieved. 37 RESOURCE UPDATE  36 38 41 42  Mr. Johnson reported that the closing date for the San Juan power plant is. June 2022  39 and they are currently down for their last maintenance. Iti is their goal to keep running for 18  40 months to use up their coal supply.  The repowering of IPP is moving forward with the majority of the work being  43 completed by the Operating Agent and the Los Angeles group. The natural gas plant should 44 be coming online in 2025. They are currently operating the coal plant at a 50% load factor  45 and the existing coal inventory before the plant shuts down in 2025.  46  Page 3 of4    (PC, minutes March. 23, 2021)  1  The plan for the hydro plants is currently focused on a drought emergency schedule.  2 The dam tender at Echo, Marv Myer, will be retiring this spring and that facility will be 3 operated by Weber Basin staffhoused at their Wanship facilities. Echo is currently six feet 4 above the level to be shut down in the fall, and therefore will not be scheduled very much. 7 The following items were included in the packet, but not discussed in the meeting:  5 Pineview's resource is a scheduled a little longer in the season.  6 8 10 11 12 13 14 16 18 19  9 POWER SYSTEMS OPERATIONS REPORT  a.. January 2021 Resource Reports b.) February 2021 Lost Time/Safety Reports c. February 2021 Public Relation Reports d.. January 2021 Outage Reports  15 OTHER BUSINESS  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.  17 on. April 27, 2021 for the purpose of discussing solar metering and invited them to attend. 20 Commissioners Summers, Becker, Bell, and Pitcher and Councilman Higginson said they 21 would like to attend. He will make reservations at the Hiatt Hotel where the conference is  22 being held. 23 24  The Power Commission will meet jointly with the City Council on April 13, for the  25 purpose ofreviewing the proposed FY 2021-2022 budget for the Power Department. 26 Commissioner Pitcher said hel has a conflict that day and will need to be excused. He 27 requested that Commissioner Summers serve as Chairman Pro Tempore for that meeting. 28 He asked for a brief summary of the proposed budget, as currently seen by Department staff, 29 and Mr. Johnson shared highlights of the budget, which does not include any rate increases,  30 but includes ongoing maintenance, three new employees, and equipment.  31 33 34 35 ADJOURN 36 39 40 41 42  32 NEXT POWERCOMMISSION  The next meeting of the Power Commission will bel held on April 13, at 8:00 a.m. The meeting adjourned at 8:55 a.m. on a motion by Councilman Higginson and  37 seconded by Commissioner Summers. Voting was unanimous with Commissioners Becker, 38 Bell, Irvine, Pitcher and Summers and Councilman Higginson voting "aye".  Pitcher, CHAIRMAN  C  Page 4 of4