1 2 3 4 5 6  MINUTES OF THE REGULAR MEETING OF THE BOUNTIFUL CITY POWER COMMISSION February 23,2021 -8 8:00 a.m. Those in Attendance  7 Power Commission 8 Jed Pitcher, Chairman 9 Susan Becker* 10 Dan Bell* 12 Paul Summers 13 14 15 Excused 16 John Cushing, Power Commission 17 David Irvine, Power Commission 18 20 19 guidelines and restrictions. 21 22 WELCOME 23 25 invocation. 26 28  Power Department Allen Johnson, Director Jay Christensen Alan Farnes* Jess Pearce* Luke Veigel* Recording Secretary Nancy Lawrence  11 Richard Higginson, City Council Rep.  19 *Attended electronically via Zoom, Meeting #913-6593-8670 in conformance with COVID-  Chairman Pitcher called the meeting to order at 8:00 a.m., Allen Johnson took roll  24 call, and Chairman Pitcher welcomed those in attendance. Mr. Christensen offered the  27 MINUTES-NOVEMBER 17, 2020  Minutes of the Regular Meeting of the Bountiful Power Commission held January  29 26, 2021 were presented and unanimously approved as written on aj motion made by 30 Commissioner Summers and seconded by Councilman Higginson. Commissioners Becker, 31 Bell, Pitcher and Summers, and Councilman Higginson voted "aye".  32 34  33 HONOR JOHN CUSHING  Mr. Johnson announced that John Cushing will be stepping down as chairman and as  35 ar member oft the Power Commission. Mr. Cushing has served 15 years on the Power 36 Commission, and most currently has served as Chairman. Prior to that he was actively 37 involved for 12 years, as he first was affiliated with the City of Bountiful as a Councilman 38 and later as the City's mayor. Mr. Johnson said "he (Mr. Cushing) has been extremely 39 involved with public power for many years", noting that it would be impossible to measure 40 how much he has done for the City with public power. Chairman Pitcher said he has known 41 Mr. Cushing for 35 years and described him as "one outstanding individual, with 42 exceptional integrity", and stated that he will be greatly missed. Commissioner Summers 43 said he has been associated with. John since 1975: this association started as a neighborhood 44 friendship and has continued as John has been a significant mentor in community, 45 government, and church settings and is loved and appreciated more than words can express. 46 Councilman Higginson recalled an experience he had in the eastern US in an Amish  Page 1 of5    (PC minutes February 23, 2021)  community where John reached out to a young child and his family where the child had 2 been involved in an accident. Although a stranger to the family involved, Mr. Cushing 3 treated the child asi ifhis own with kind concern and personal interest. Although 4 Councilman Higginson had not previously known John, he said this was the beginning ofa 5 journey where he witnessed John's ability to provide detailed, focused solutions that make  6 things better for others - aj people person.  7 8  Mr. Cushing graciously acknowledged by praising the Power Commissioners for  9 their service and the expertise they bring to BCL&P. He noted that his mother served as 10 Bountiful City Treasurer and his experience with the City has been long and rewarding. He 11 recognized BCL&P as the flagship ofthe City and a great leader ofother Utah power 12 municipals. He expressed appreciation to Mr. Johnson for the similar journeys they have 13 had as individuals and the support that has come through their association with the City and 14 public power. Mr. Johnson thanked Mr. Cushing for the wonderful service he has given in 15 sO many different ways and presented him with plaques ofi recognition. Photographs were 18 BUDGET REPORT-YEARIODATE 6-MONTH PERIOD ENDED31  16 taken and Mr. Cushing was wished well for the coming years.  17 20 23 24  19 DECEMBER 2020  Mr. Christensen reported that the Fiscal Year 2020 Budget Report is final and the  21 independent audit has been completed. The Fiscal Year-to-date (YTD) six month period for  22 July through December 2020 is also final.  The 2010 Bond Principal ($720,000.00 annual payment) and Interest ($253,708.75  25 semi-annual payment) were made on November 1, 2020. And the remaining balance, 26 $8,630,000.00, was paid off on November 9, 2020, bringing the balance for the 2010 Bond 27 to $0.00. The corresponding Federal Interest Expense subsidy of$107,432.97 was received 28 on 21 January 2021. With the payoffoft the 2010 Bond, the $5,686,971.56 rate stabilization 29 cash wasi moved into Cash & Investments (operating cash), and the budget for interest 30 earned on rate stabilization was included with interest income on investments (operating 31 cash). All financial transactions related to the 2010 Bond are now completed.  32 33  It was noted that there were significant costs to the Power Department relative to the  34 high wind event on 8 September 2020. The current estimate for costs incurred is $700,900 35 and includes labor, materials, equipment, and 3rd party costs for outside crews and 36 contractors, (included in Operating Expenses and Labor Expenses). BCLP, Bountiful City, 37 and numerous other Utah government entities are in the process of filing a claim for 38 reimbursement from the Federal Emergency Management Agency (FEMA). Major 39 components of the $700,900 included: Labor, $221,881; Materials, $87,178; Equipment,  40 $94,638; and 3rd party and miscellaneous costs, $297,202.  41 42  Total Revenues YTD were $24,282,893, above its historically allocated budget  43 (HAB) by $455,125. Major items above their HABs included: Electric Metered Sales, 44 $395,047; Contribution in Aid to Construction, $44,492. Air Products income was below its  45 HAB $(51,288) with an average. load factor of 56.9 percent.  46  Page 2 of5    (PC, minutes February 23, 2021)  Total Operating Expenses YTD were $22,337,245, below its HAB by $630,358.  2 Major items below their HABs included: Power Cost Expense, $372,974, due to careful 3 purchasing and scheduling of power resources and selective use of the three lurbines; and 4 Street Light expense, $110,240. Distribution Expense was above its HAB by $(107,687) 5 and included $295,000 ofunbudgeted wind expense ($64,000 for materials plus $231,000  6 for 3rd party work).  7 8 11 12  Total Capital Expenditures YTD were $685,049 and included: $255,430 foran new  9 double bucket truck; $292,128 for Feeder #575; $31,015 for The Cottages on Main St.;  10 $24,991 for the Renaissance Center; and $24,021 for Feeder #272.  Total Labor and Benefits Expense YTD (included in YTD Operating Expenses and  13 Capital Expenditures above) was $2,268,962. As of31 December 2020, (the last pay: period 14 in the YTD period), 49.0% or $2,309,563 oft the TL&B could have been spent and the actual  15 TL&B was $40,601 below that target. 18 operating costs, and low capital expenditures.  16 17 19 20 23 24  The Net Margin YTD was $1,260,599 with high EMS, low power and other Total cash and cash equivalents, $17,604,202, were down $(8,961,266) from  21 $26,565,468 at 30. June 2020. The bond payoff was a significant factor in this decrease. It  22 is the goal oft the City to have 180 days of operating cash on hand.  Chairman Pitcher commented that the article in the City newsletter regarding the  25 bond payoff was well done and he called for a motion on the budget report. Councilman 26 Higginson motioned to accept the Budget Report, Commissioner Summers seconded the 27 motion and voting was unanimous. Commissioners Becker, Bell, Pitcher and Summers and  28 Councilman Higginson voted "aye". 30 DIRECTIONAL BORING BID APPROVAL  29 31  Mr. Veigel reviewed that there are four underground distribution circuits and nine  32 street light circuits in the system that need to have new conduit installed and repairs made. 33 Her referenced the projects in a slide presentation (photos were also included in the packet). 34 Five contractors were invited to bid and three responses were received. Itis the 35 recommendation of stafft to award the bid to the low bidder, Black and McDonald (Salt Lake 36 City) in the amount of $363,485. It was noted that references were checked and the 37 responses for this company were good. This project is included in the budget. 38 Commissioner Summers made a motion to recommend approval oft this bid to the City 39 Council. Councilman Higginson seconded the motion which carried unanimously. 40 Commissioners Becker, Bell, Pitcher and Summers and Councilman Higginson voted "aye".  41 43  42 TRANSFORMER BID APPROVAL  Mr. Pearce reviewed that the inventory of single-phase pad mount and overhead  44 transformers is running low, and we need to purchase more. to replenish. it. The transformers. 45 will be used to replace damaged or leaking transformers on the system and future  Page 3of5    (PC minutes February 23, 2021)  construction projects throughout the City. Three major contractors were asked to bid on the  2 following: 3 4 5 6 7 8  10 (ea.)25kva single phase Overhead 12 (ea.)37.kva single phase Overhead 10 (ea.) 50kva single phase Overhead 30 (ea.) 50kva single phase Underground pad Mount  Sealed bids were: received from all three companies and it is the recommendation of  9 staff to award the bid to Anixter Power Solutions - GEi in the amount of$104,606.00. 10 Although this was not the low bid, it offered the shortest delivery time of8-12 weeks. Mr. 11 Pearce reviewed that the bids were evaluated on purchase price, total owning costs, and 12 delivery time. He said that the delivery times for the two low bid transformers groups were 13 longer and the transformer inventory is too low to wait the approximately 4-5 months for 14 delivery. Commissioner Becker made a motion to recommend to the City Council that the 15 transformer bid be awarded to Anixter Power solutions-GE. Commissioner Bell seconded 16 the motion and voting was unanimous. Commissioners Becker, Bell, Pitcher and Summers 17 and Councilman Higginson voted "aye". Mr. Pearce thanked the Commission for their 18 support oft replenishing inventory, particularly with recognition of critical delivery time.  19 21  20 COVID UPDATE  Mr. Pearce reported that COVID procedures are continuing to be used (masks, social  22 distancing, temperature checks, etc.). There have been nine cases ofCovid in the Power 23 Department, and as ofy yesterday, everyone is back to work. Hej praised the staff for being 24 supportive of CDC guidelincs and stepping up to assist when work crews nceded to be  25 adjusted. 26 28  27 RESOURCE UPDATE  Mr. Johnson reviewed the three major power grids for North America and noted that  29 the state ofTexas has its own independent grid which is marketed wholesale to its 30 customers. This fact was devastating to Texas residents during the recent winter/ice storm 31 which basically disabled most ofthe State's resources and left customers at the mercy of 32 demand/supply rates in an unregulated market. This fact was also felt by BCL&P, but in a 33 much smaller way due to its hedge purchasing. Mr. Johnson displayed a slide which showed 34 aj power bill for a 9,000 sq. ft. apartment in Texas, totaling $5,717.90 for one month. 35 Discussion followed regarding the merits/problems of an unregulated market. 37 Thef following items were included in the packet, but not discussed ini the meeting:  36 38 40 41 42 43 44  39 POWER SYSTEMS OPERATIONS REPORT  a. December 2020 Resource Reports b.. January 2021 Lost Time/Safety Reports C.. January 2021 Public Relation Reports d. December 2020 Outage Reports  45 OTHER BUSINESS  Page 4 of5    (PC minutes February 23, 2021)  Mr. Johnson reported to the Commission that he will be meeting with the City  2 Council in a work session on April 27,2021 at 6:00 p.m. to make aj presentation on solar 3 power and associated rate considerations with net metering. He invited the Commissioners  4 to attend. 5 6  The APPAJune Conference (June 20-23, 2021) will be held live in Orlando. He  7 asked the Commissioners tol let him know ift they would like to attend. Commissioners 8 Summers, Becker, Bell, and Pitcher and Councilman Higginson said they would like to 9 attend. He noted that he thought the public power conference scheduled July 13 and 14 will  10 be virtual. 11 13 14 a.m. 15 16 ADJOURN 17 18 19 20 21  12 NEXT POWER COMMISSION  The next meeting ofthe Power Commission will bel held on March 23, 2021 at 8:00  The meeting adjourned at 9:15 a.m. by consensus.  A Jed Pitcher, CHAIRMAN  Page 5of5