1 2 3 4 5 6  MINUTES OF THE REGULAR MEETING OF' THE BOUNTIFUL CITY POWER COMMISSION November17,2020-8.00 a.m. Those in Attendance  7 Power Commission 8 Jed Pitcher, Chairman 9 Susan Becker* 10 Dan Bell* 11 John Cushing 13 David Irvine 14 Paul Summers* 15 16 Excused 17 Alan Farnes 18 20 19 guidelines and restrictions. 21 22 WELCOME 23 25 invocation. 26 28  Power Department Allen Johnson, Director Jay Christensen Jess Pearce* Luke Veigel* Recording Secretary Nancy Lawrence  12 Richard Higginson, City Council Rep.  19 *Attended electronically via Zoom, Meeting #913 6881 0857 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. Johnson offered the  27 MINUTES-OCTOCTOBER27,2020  Minutes oft the Regular Meeting of the Bountiful Power Commission held October  29 27,2020 were presented and following a brief discussion regarding the status oft the FEMA 30 reimbursement for wind damage, the minutes were unanimously approved as written on a 31 motion made by Councilman Higginson and seconded by Commissioner Irvine. 32 Commissioners Becker, Bell, Cushing, Irvine, Pitcher and Summers, and Councilman 35 BUDGET REPORT-YEAR-TO-DATE3-MONTH PERIOD ENDED 30  33 Higginson voted "aye". 36 SEPTEMBER 2020  34 37  Mr. Christensen reported that the Fiscal Year 2020 Budget Report is final as of  38 yesterday. The Fiscal Year-to-Date 3-Month Period Ended 30 September 2020 is also final. 39 He noted that changes have been made to the way that Air Products Income and UAMPS 40 power costs are posted to the general ledger, and EMS are recorded as an estimate on the 41 Income Statement. This results in these accounts being reported the second month after they 42 are earned or incurred. This change in recording has resulted in improved accuracy ofthe 43 financial statements and this budget report. This change is a 'work in progress' and further  44 changes will be made as needed.  45  Page 1 of5    (PC minutes November 17, 2020)  1  The 2010 Bond Principal ($720,000.00 annual payment) and Interest ($253,708.75  2 semi-annual payment) were: made on November 1, 2020. And the remaining balance, 3 $8,630,000, was paid off on! November 9, 2020. The corresponding Federal Interest 4 Expense subsidy of $107,432.97 is expected during November. This will bring the balance  5 for the 2010 Bond to $0.00.  6 7  Total revenues YTD were $9,072,664, above its historically allocated budget (HAB)  8 by $474,036. Major items above or (below) budget included: Electric Metered Sales, 9 $403,939; Air Products, $26,099; Street Light Income, $29,234; Interest Income on 10 Investments, which now includes interest income oni rate stabilization, $28,664; and  11 Contribution in Aid to Construction was below by $(29,881).  12 13  Total operating expenses YTD were $7,112,465, below its HAB by $483,626. Major  14 items below their HABs included: Power Cost Expense, $223,066, due to careful purchasing 15 and scheduling of power resources and selective use oft the three turbines; Computer 16 Expense, $66,886, as budgeted items have not yet been completed; Street Light Expense,  17 $44,149; and Transformer Expense, $38,238.  18 19 20 month. 21 22  Total Capital Expenditures YTD were $169,045 with no significant change from last Total Labor and Benefits Expense YTD (included in Operating Expenses YTD and  23 Capital Expenditures listed above) was $1,016,699. Asof19 September 2020, the last pay 24 period ini the YTD period, 22.1% or $1,045,109 of the TL&B could have been spent and the  25 actual was $28,410 below that target.  26 27 30 31  The Net Margin YTD was $1,791,153 with high EMS, low power costs, and low  28 capital expenditures. Mr. Christensen noted that this is expected tol be materially reduced in  29 future months with true ups ofnatural gas and windstorm costs.  Total cash and cash equivalents, $26,008,931, were down $(556,537) from fiscal  32 year end 2020, with major sources of difference including the $1,791,153 net margin, a 33 $(504,340) increase in accounts receivables; a $(1,429,499) decrease in accounts payable;  34 and other FYE 2020 changes.  35 36  The impact of paying off the bond was discussed as it relates to cash flow and Mr.  37 Christensen noted that both the City Manager and the City Finance Director have reviewed 38 the changes in Balance Sheet and Cash Flow Statement data for YTD and feel comfortable 39 with the net cash position of the City. The target for operating cash is to cover operating 40 costs for 180 days. It was suggested that the citizens bei made aware of the bond payoffand 41 this will be done via the weekly report and posting on Facebook and Twitter.  42 43  Following discussion, the Budget Report was accepted unanimously on a motion  44 made by Commissioner Irvine and seconded by Councilman Higginson. Commissioners 45 Becker, Bell, Cushing, Irvine, Pitcher and Summers, and Councilman Higginson voted  46 "aye".  Page 2 of5    (PC minutes November. 17, 2020)  1 3  2 PINEVIEW. ACCUSONIC FLOW METER CONSOLE  Mr. Veigel reported that BCL&P has two sets of Accusonic flow meter consoles at 4 the Pineview Hydro power plant which are outdated and for which parts are. no longer available. The flow meters are currently working, but ift they were to fail, with no ability to 6 repair them, the hydro could not be operated safely and there is a potential for flooding  7 downstream. 8 9  Itis the recommendation ofs stafft to purchase two new consoles which cost $21,170  10 each, plus $8,460 for onsite support for a total of $50,800. The delivery for the flow meters 11 is4t to 6 weeks, which should provide adequate time to get them installed prior to the 2021 12 generation season. Commissioner Cushing made ai motion to recommend to the City 13 Council that this purchase be approved. Councilman Higginson seconded the motion and 14 voting was unanimous. Commissioners Becker, Bell, Cushing, Irvine, Pitcher and  15 Summers, and Councilman Higginson voted "aye". 17 UAMPS STEELSOLAR PROJECT  16 18  Mr. Johnson reviewed that the Power department has been working to secure a utility  19 size solar power project for several years. We now have an opportunity purchase 16.15% 20 (6,4591 kW) ofthe 401 MW output from the "Steel Solar Project" which isi in Box Elder 21 county. The transmission rights have been secured and the power will be delivered as a 22 network resource under UAMPS' Transmission Service Operating Agreement (TSOA). The 23 term oft the power purchase agreement would be 25 years and would be a flat price for the 24 entirety oft the contract. The purchase price is competitive with other solar projects of the 25 same size. The commercial operation date is anticipated to be December 31, 2022.  26 27 30 31  This project would allow BCL&P to increase our renewable energy portfolio for the  28 entire city and will need to be backed up by the existing Power Department power plant to  29 provide power to residents in the afternoons and evenings.  It is the recommendation ofs stafft to approve moving forward with this project via  32 approval ofai resolution. Commissioner Becker noted that Box Elder County has given 33 approval for the project and the county will be receiving revenue from the developer for this  34 and one other project to be in Box Elder County.  35 36  Commissioner Irvine made a motion that the Power Commission recommend to the  37 City Council approval of] Resolution 2020-21, entitled A RESOLUTION AUTHORIZINGTHE 38 STEEL SOLAR PROJECT TRANSACTION SCHEDULE UNDER THE MASTER FIRM POWER SUPPLY 39 AGREEMENT WITH UTAH ASSOCIATED MUNICIPAL POWER SYSTEMS; ANDI RELATED MATTERS. 40 Councilman Higginson seconded the motion and voting was unanimous. Commissioners 41 Becker, Bell, Cushing, Irvine, Pitcher and Summers, and Councilman Higginson voted  42 "aye". 43 45  44 2021 MEETING CALENDAR 46 meetings in calendar year 2021, as follows:  Mr. Johnson presented a proposed Meeting Schedule for the Power Commission  Page 3 of5    (PC, minutes November 17, 2020)  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20  January 26, 2021 February 23, 2021 March 23, 2021 April 6, 2021 May 25, 2021 June 29, 2021 July 2021 August 24, 2021 September 28, 2021 October 26, 2021 November 16, 2021 IPA Annual Meeting December 2021  Tuesday, 8:00 a.m. Tuesday, 8:00 a.m. Tuesday, 8:00: a.m. (Dependent on CC budget schedule) Tuesday, 8:00 a.m. Tuesday, 8:00 a.m. No. PC meeting Scheduled Tuesday, 8:00 a.m. Tuesday, 8:00 a.m. Tuesday, 8:00 a.m. Tuesday, 8:00a.m. December 7,2 2021 No PCmecting Scheduled  Tuesday, 8:00 a.m. Joint PC and CC budget meeting  APPA National Conference June 20-23, 2021; Chicago, IL UAMPS Annual Meeting August 15-17, 2021; Squaw Valley  UAMPS Annual Meeting December 15, 2021  Following al brief discussion, Commissioner Irvine made a motion to approve the  21 Proposed meeting schedule, as presented. Councilman Higginson seconded the motion and 22 voting was unanimous. Commissioners Becker, Bell, Cushing, Irvine, Pitcher and 25 Thefollowing items were included ini the packet, but not discussed in the meeting:  23 Summers, and Councilman Higginson voted "aye".  24 26 28 29 30 31 32 33 34 35 37  27 POWER SYSTEMS OPERATIONS REPORT  a. September 2020 Resource Reports b. October 2020 Lost Time/Safety Report C. October 2020 Public Relations Report d. October 2020 Outage Reports  36 OTHER BUSINESS  Mr. Pearce reported to the Commission the COVID practices which have been  38 adopted per State mandates. The only exception toi masks at this time are crew members 39 who are working outside and where fire resistant apparel is required. One employee has 40 COVID and is in quarantine. Tracking established that no other employees were in contact  41 during the contagious phase.  42 43 45  Mr. Johnson noted that the upcoming IPA meeting will be virtual, and he asked the  44 commissioners to let him know: ift they wanted to bei included.  Page 4 of5    (PC minutes November 17, 2020)  1  Commissioner Summers asked for updated information regarding the UAMPS  2 Carbon Free project. Mr. Johnson reported on other cities that had dropped offthe list and 3 that it was his understanding that subscriptions are still under 100: mW. The potential for 4 future participation was also discussed, should the subscription level go up.  5 7 9 meeting. 10 11 ADJOURN 12  6 NEXT POWER COMMISSION  The next meeting of the Power Commission is scheduled for January 26, 2021.  8 Depending on conditions of the pandemic, Allen Johnson will confirm the format oft the  The meeting adjourned at 8:45 a.m. on ai motion made by Councilman Higginson and  13 seconded by Commissioner Cushing. Voting was unanimous with Commissioners 14 Becker, Bell, Cushing, Irvine, Pitcher, and Summers, and Councilman Higginson voting  15 "aye". 16 17 18 19  G Jed Pitcher, CHAIRMAN  Page 5 of5