1 2 3 4 5 6  MINUTES OF THE REGULAR MEETING OF THE BOUNTIFUL CITY POWER COMMISSION September 22, 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 City Administration 17 Gary Hill, City Manager* 18 Clint Drake, City Attorney*  Power Department Allen Johnson, Director Jay Christensen* Alan Farnes* David Farnes* Jess Pearce* Luke Veigel* Recording Secretary Nancy Lawrence*  12 Richard Higginson, City Council Rep.  19 20 Visitors 22 25 26 WELCOME 27 29 the invocation. 30 32  21 Ron Mortensen, Utah Taxpayer Association 24 COVID-19 guidelines and restrictions.  23 *Attended electronically via Zoom, Meeting ID #941 6239 0435 in conformance with  Chairman Pitcher called the meeting to order at 8:05 a.m., Allen Johnson took roll  28 call, and Chairman Pitcher welcomed those in attendance. Commissioner Summers offered  31 MINUTES-AISISTISZPN  Minutes ofthe Regular Meeting oft the Bountiful Power Commission held August 25,  33 2020 were presented and unanimously approved as written on a motion made by 34 Commissioner Cushing and seconded by Commissioner Summers. Commissioners Becker, 35 Bell, Cushing, Irvine, Pitcher and Summers, and Councilman Higginson voted "aye 37 BUDGET REPORT-) YEAR-TO-DATE 1-MONTH PERIOD ENDED31.JULY2020 39 to the independent audit not yet being completed. The Fiscal Year-to-Date 1-Month Period 40 Ended 31 July 2020 is preliminary, but only missing the interest income on rate stabilization  36 38  Mr. Christensen reported that the Fiscal Year 2020 Budget Report is not yet final due  41 (which is not expected to materially affect the net margin).  42 43  Mr. Christensen then reviewed that ai new process is now being implemented for  44 recording Electric Metered Sales (EMS), Air Products, and UAMPS Power Costs, which 45 basically recognize a time delay oftwo months for the budget reports. Because the numbers 46 for these accounts are: not available until toward the end of the month, in the past the data for  Page 10 of5    (PC minutes September. 22, 2020)  these accounts has been estimated for budget reporting. Actual data will be used ini the 2 futurc, but this proccss will result in thc Budgct Rcport bcing dclaycd by two months. He 3 noted that this change ofr reporting is intended to improve the accuracy of the financial 4 statements and the Budget Report; he also pointed out that it is a "work inj progress" and 5 further changes will be made as needed. The 2010 Bond Principal and Interest contributions 6 are made to the bond cash account and fund the one annual principal payment and the two  7 semi-annual interest payments.  8 9  Total Revenues YTD were $2,948,062, below its historically allocated budget  10 (HAB) by $(145,042). Major items included: EMS, below its HAB by $(205,832); Air 11 Products, below its HAB by $(2,977); Street Light Income, above its HAB by $23,415; and  12 Interest Income on Investments, above its HAB by $41,190.  13 14 17 18 21 22 25 26 27 28  Total Operating Expenses YTD were $2,262,937, below its HAB by $345,357.  15 Major items included: power cost expense, below its HAB by $274,094; and computer  16 expense, below its HAB by $46,998.  Total Capital Expenditures YTD were $68,409 and included $26,748 for feeder  19 #575, an unbudgeted $24,991 for the Renaissance Center, and an unbudgeted $14,498 for  20 the 400 North pump.  Total Labor and Benefits (included in Operating Expenses YTD and Capital  23 Expenditures YTD was $272,694. Asof25. July 2020, 6.8% of $322,565 ofthe TL&B 24 could have been spent; the actual TL&B was $49,871 below that target.  The net margin for the YTD was $616,716 with low power costs. Inr response to questions from the group, Mr. Johnson acknowledged that the  29 expenses incurred during the wind storm (an additional approximate 5,000 man hours, plus 30 meals and rooms for the personnel who help us through the IPSA Mutual Aid agreement, 31 and 51 poles and 7,000 feet of wire, plus other related expenses) will wipe out our $600,000 32 margin. Chairman Pitcher asked if we would get assistance from FEMA. Mr. Johnson 33 indicated that it would depend on the total amount allocated for the County, but he thought it  34 would be a FEMA event.  35 36  Commissioner Irvine asked ift there were a way to pay additional performance  37 incentive pay for the line crews and he noted they had exhibited a Herculean effort and he 38 was hopeful that the City would approve an "above and beyond call duty pay" of $800 per 39 person. Mr. Johnson praised all employees who had participated in getting power restored. 40 Ity was also pointed out that other departments in the City had also felt the effects of the  41 windstorm and should be considered for additional pay.  42 43  Commissioner Irvine made a motion to accept the budget report, as presented.  44 Councilman Higginson seconded the motion and voting was unanimous. Commissioners 45 Becker, Bell, Cushing, Irvine, Pitcher and Summers, and Councilman Higginson voted  46 "aye".  Page 2 of5    (PC minutes September. 22, 2020)  1 3  2 WIND POWER POLES PURCHASE  Mr. Veigel reviewed that due to the damaging east wind event, iti is necessary to  4 order additional poles to replace our inventory and to meet the anticipated future needs to 5 repair and maintain the system. He noted that the cost to repair the system was not budgeted nor purchased in the typical bidding fashion but acquired via materials from Vendors stock  7 and from other cities.  8 9  Itisre recommended that approval be given to purchase 20 35-foot poles and 2645-  10 foot poles from McFarland Cascade for the sum of $30,068.00. Commissioner Cushing 11 made ai motion to approve this purchase, as recommended. Commissioner Summers 12 seconded the motion and voting was unanimous. Commissioners Becker, Bell, Cushing, 13 Irvine, Pitcher and Summers, and Councilman Higginson voted "aye".  14 16  15 EAST WIND DISCUSSION  Mr. Pearce narrated a slide show of photos taken of damages incurred during the  17 recent windstorm. He noted that because the trees were full ofl leaves, the damage was 18 considerably worse than when branches are bare. Many very large trees were blown down 19 and/or lost significant branches. The weight oft the branches on power lines then caused 20 power poles to break. He referenced sites which were extremely dangerous for our crews to 21 be working in because oft the pressure on the power lines. Our crews first responded at 22 approximately 3:00 a.m. Tuesday morning and worked almost around the clock' until late  23 afternoon on Saturday, September 12th.  24 25  Mr. Johnson pointed out that it took longer to get customers back on line during this  26 event because there were sO many damages on lines which served individual homes, as 27 opposed to main lines where one repair can restore the power to a larger number of 28 customers. He also noted that many customers have been delayed in getting power due to 29 the high demand on contractors and suppliers for personal property damage.  30 31  Mr. Pearce said that although many employees were working 15-18-23-hour days,  32 there were only two injuries (a minor cut on the hand and a rolled ankle). He praised the 33 line crews and tree trimming crews and the backup from all department personnel in 34 coordinating and assisting with repairs. It was noted that an AMI system would be helpful 35 ini identifying every service that has lost power, and would also make meter reading and 36 billing more efficient. There are currently three line crews and one in-house tree trimming 37 crew. The permanent addition of one more line crew would be helpful for on-going  38 maintenance of our system.  39 40  Mr. Pearce pointed out that sincel line crews across the State train through IPSA,  41 their protocols are similar and results in efficiency and safety while working together via the 42 Mutual Aid Agreement. He again expressed appreciation for the superior work ethic of 43 BCL&P employees and the support that this department receives from the Commission.  44  Page 3 of5    (PC minutes September 22, 2020)  1  Chairman Pitcher requested that Councilman Higginson follow up with the proposal  2 forac onc-time bonus for thc cmployees who participated in the windstorm repairs, as well as 4 The following items were included in the packet, but not discussed in the meeting:  3 the possibility for FEMA assistance.  5 7 8 9 10 11 12 13 14 16  6 POWER SYSTEMS OPERATIONS REPORT  a. July 2020 Resource Reports b. August 2020 Lost Time/Safety Report C. August 2020 Public Relations Report d. July 2020 Outage Reports  15 UAMPS CARBON FREE PROJECT  Mr. Johnson reported that there have been ongoing meetings regarding the UAMPS  17 Carbon Free Project, with major items of discussion being the subscription level and 18 finances. The DOE award for the project has been delayed because UAMPS had to 19 resubmit the application. DOE was asking for additional information on NuScale and their 20 ability to make aj profit on modules 2-12. DOE is going through the process and their new 21 estimated timeline is to make the award the first part ofOctober. Mr. Johnson noted that,  22 without the DOE award, involvement with this project makes no sense.  23 24  He said that the UAMPS Project Management Committee (PMC) has also put the  25 Development Agreement, Development Cost Reimbursement Agreement, and the Interim 26 PMC budget on hold contingent to the DOE. award being made. Based on these extensions, 27 UAMPS has extended the Withdrawa/Reduction period to the end of October. This will  28 allow us more time to make our: final decision on the project.  29 30  Discussion followed regarding the subscriptions of other public utilities in Utah and  31 it was: noted that as entities drop out, the cost/share for BCL&P increases. Ifthis project is 32 not cost effective, it would make more sense toj pull back resources from the IPP project to 33 cover our demand. In general, the group expressed support for the NuScale project, 34 contingent on favorable subscription levels of other entities and support from the DOE. Mr. 35 Johnson said that the next Power Commission meeting is October 27th, and we will have to  36 make an official recommendation to the City Council that night.  37 39 40 42 44 the meeting. 45 46 ADJOURN  38 OTHER BUSINESS  None.  41 NEXTPOWER COMMISSION  The next meeting oft the Power Commission meeting is scheduled for October 27,  43 2020. Depending on conditions of the pandemic, Allen Johnson will confirm the format of  Page 4 of5    (PC, minutes September. 22, 2020)  1 4 5 6  The meeting adjourned at 9:45 a.m. on a motion made by Commissioner Summers  2 and seconded by Commissioner Irvine. Voting was unanimous with Commissioners Pitcher, 3 Becker, Bell, Cushing, Irvine and Summers, and Councilman Higginsen voting "aye".  DE JedPitcher, CHAIRMAN  Page 5 of5