1 2 3 4 5 6  MINUTES OF THE REGULAR MEETING OF THE BOUNTIFUL BOUNTIFUL CITY POWER COMMISSION  June 23, 2020 - 8:00 a.m. Those in Attendance  7 Power Commission 8 Jed Pitcher, Chairman 9 Susan Becker* 10 Dan Bell 11 John Cushing 14 Paul Summers 15 16 City Administration 17 Tyson Beck, City Recorder 18 21 22 WELCOME 23 25 27  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. 13 David Irvine* (joined the meeting -8:30 a.m.)  19 *Attended electronically via Zoom, Meeting ID #925.3179.9849, in conformance with  20 COVID-19 guidelines and restrictions.  Chairman Pitcher called the meeting to order at 8:05 a.m., took roll call, and  24 welcomed those in attendance. Mr. Christensen offered the invocation.  26 MINUTES- MAY26,2020  Minutes of the Regular Meeting ofthe Bountiful Power Commission held May 26,  28 2020 were presented and Commissioner Cushing requested that a correction be made to 29 show that he attended in person, not via Zoom. There was also clarification needed on] page 30 4of5, line 18. Mr. Johnson suggested that these items be addressed, and approval ofthe 33 BUDGET REPORT-YFARTO-DATEIL-MONTH PERIOD ENDED 31 MAY2020 35 ended May 31, 2020. He noted that July 2019 through April 2020 is final, and May 2020 is 36 preliminary, though most line item YTD amounts will not change when they are final. The 37 2010 Bond's semi-annual interest payment of $253,708.75 was made on May 1,2 2020, and 38 on April 21, 2020 the corresponding Federal interest expense subsidy of$107,432.96 was  31 minutes be delayed until the next regular meeting.  32 34  Mr. Christensen presented the Budget Report for the Year-to-date 11 Month period  39 received. 40 41  On June 16, 2020, the following amendments were made to the FY 2020 budget:  42 Plant Equipment Repair Expense was increased by $2,000,000 to cover the previously 43 unbudgeted but needed: repairs to the two Titan Solar Turbines; Echo Hydro Expense was 44 increased by $1,500,000 to cover the previously unbudgeted but needed: repairs to all three 45 hydro turbines; and Use of] Retained Earnings Revenue was increased by $3,500,000 to 46 balance the FY 2020 budget. Mr. Christensen explained that no income was recorded in  Page 1of5    (PC minutes June 23, 2020)  BCLP's financial statements to offset the above expenses due to the State ofUtah's 2 Transparency reporting requirements that do not allow pseudo revenues to be used to 3 balance the budget. Although BCLP had sufficient cash to pay for these repairs, they will 4 still generate al loss for the FY2020 City's Consolidated Annual Financial Report. He 5 explained that there is al bit ofa disconnect" between budget reporting and GAAP 6 reporting: budget reporting allows for "pseudo income" such as. Retained Earnings (i.e., 7 cash) to be used as an income source to offset approved expenses; but GAAP accounting  8 does not allow the use of "pseudo income".  9 10  Tyson Beck, City Finance Director, led a discussion on budget reporting versus  11 GAAP reporting. He clarified that in GAAP reporting, a true revenue must be generated 12 within the current subject year; excess: revenues in the form of cash from previous years 13 cannot be reported as revenue. Moving forward, we. have two options: use pseudo revenue 14 (Retained Earnings, i.e., cash) to balance the current income statement budget report; or 15. leave the pseudo revenue out and the bottom line of the Income Statement reflect the true 16 bottom line for that period. Following discussion, it was the consensus ofthe Power 17 Commission to continue with using the "pseudo" revenue to balance the budget, asl has been 18 done in the past, with the logic that this is a better tool for management purposes. It was 19 acknowledged that this method requires more adjusting entries at the end oft the year. Mr.  20 Christensen expressed appreciation to Mr. Beck for his support.  21 22  Total revenues YTD were $25,544,856. below its historically allocated budget  23 (HAB) by $(1,165,458). Major items (below) their HABs included electric metered sales 24 (EMS),S(767,933) or 3.3% below its HAB; Air Products, $(329,350) below its HAB with 25 an average load factor of 60.7%; and Contribution in Aid to Construction, $(165,910) below 26 its HAB. Major items above their HABs included preliminary Interest Income on 27 Investments, $79,247 above its HAB, and Federal Grants Miscellaneous, $20,356, (ai new 28 general ledger line with no budget that shows BCLP's portion of the "Gun Range Fire"  29 reimbursement received by the City).  30 31  Total Year to Date Operating Expenses were $25,848,758, above its HAB by  32 $2,744,269. Major items (above) or below budget included: power cost expense (including 33 the now budgeted repairs to the power plant turbines and to the Echo hydro), $2,317,914 34 below its HAB with the lower EMS; street light expense, $(133,015) above its HAB; 35 transfer to the general fund expense, $107,302 below its HAB with the lower EMS; meters 36 expense, $49,461 below its HAB; transformers expense, $38,272 below its HAB; and  37 SCADA expense, $36,352 below its HAB.  38 39 41 42 45  Total Capital Expenditures YTD were $910,127 and included $462,173 for the Total Labor and Benefits Expense YTD was $3,928,405. AsofMay 16, 2020 (the  40 Downtown Plaza, and $161,692 for the feeder #673 -#271 inter-tie.  43 last pay period in the YTD period), 87.9% or $4,078,695 oft the TL&B budget could have  44 been spent; the actual TL&B was $150,290 below that target.  Page 2 of5    (PC minutes. June 23, 2020)  1 3 4  The Net Margin YTD was $(1,214,029) due to the repairs to the power plant Total cash and cash equivalents were a net $25,296,869 at month end, down  2 turbines, the repairs to the Echo hydro, and lower than budgeted revenues.  5 $(750,334) from $26,047,203 at 30 June 2019. Mr. Christensen noted that the major (uses) 6 ofcash at month end were: Net margin YTD, $(1,214,029); an increase in Accounts 7 Receivables of $(36,931); and a decrease ini net accounts payableofs.434,772).  8 9  Following a brief discussion, Commissioner Summers made a motion to accept the  10 Budget Report as presented. Councilman Higginson seconded the motion which carried 11 unanimously. Commissioners Pitcher, Becker, Bell, Cushing, Irvine, and Summers and  12 Councilman Higginson voted "aye". 14 DIRECTIONAL BORING UPDATE  13 15  Mr. Veigel reviewed that Americom Tech, Inc. has been working on several boring  16 conduit projects throughout the City. We would like to add three additional bore projects for 17 them to complete while they are ini the City. The additional projects include a distribution 18 system bore with 1-3" conduit on 3100 South and Orchard Drive, and two additional 19 streetlight bores for the burned up streetlights (one at 900 East 2050 South and one at 98 20 East 2000 South, both with 1-2" conduits. (Maps are included in the packet). We requested 21 al bid from Americom, and they responded with a bid price of $60,270. This has been 22 reviewed by and the Power Department Staff and City Manger and comes with their 23 recommendation for approval. Following a briefdiscussion Councilman Higginson made a 24 motion to accept the bid quote from Americom, as presented. Commissioner Irvine 25 seconded the motion and voting was unanimous. Commissioners Pitcher, Becker, Bell, 26 Cushing, Irvine, and Summers, and Councilman Higginson voted "aye".  27 29  28 TREE TRIMMINGTRUCK PURCHASE  Mr. Pearce reported that the BCL&P 2020-21 budget includes the purchase ofai new  30 aerial lift tree trimming truck. This unit will replace a 2008 Ford 750 and is requested due to 31 constant maintenance and mechanical issues with the older truck. A: single bid was requested 32 from Mountain States Industrial Services which can build the new unit under the State bid 33 contract. The new unit will consist ofa 2021 Freightliner M2-106 cab and chassis, a 65' 34 working height Versalift aerial boom with a single man platform and an Arbor Tech 35 Forestry chip body. The bid on this unit was $195,480, which was $10,000 under budget. 38 reported that there is one in-house 3-man tree trimming crew and two 3-man contract crews 39 with Asplundh. He said that Asplundh has given excellent service and the current contract 40 extends for one more year. With the three tree trimming crews, it takes about 3 to 3 % years 41 to completely get through the whole city, plus do the "notes" or individual property requests 42 where the tree growth comes back more quickly. Following discussion, Commissioner 43 Summers made a motion to: recommend approval of the tree trimming truck purchase from 44 Mountain States Industrial Services in the amount of $195,480, with al lead time of180- - 45 240 days. Councilman Higginson seconded the motion and voting was unanimous.  36 37  Chairman Pitcher asked about the status of contract tree trimming and Mr. Pearce  Page 3 of5    (PC, minutes. June 23, 2020)  Commissioners Pitcher, Becker, Bell, Cushing, Irvine, and Summers, and Councilman  2 Higginson voted "aye". 4 COVID-19 DISCUSSION  3 5  Mr. Pearce reported that the department has done well at keeping healthy and following COVID guidelines. Face masks are currently being worn (except for working 7 crews who are outside and where the face masks fog protective eye-wear. He said the department is working on getting additional thermometers and are in a good situation for  9 cleaning/disinfecting supplies and face masks.  10 11  Chairman Pitcher asked what the impact on the accounts receivable from electric  12 customers has been, and commercial and residential changes were discussed. Overall, the 13 figures are better this month than last month. Commissioner Becker noted that another  14 impact financially is from a decrease in sales tax. 16 ECHO PINEVIEW PROJECT UPDATE 19 install it this fall when the water is shut down.  15 17 20 21 22 24  Alan Farnes reported that all three units at Echo are operational and running. The  18 new: runner hasl been shipped from China and should bel here by next week. We will plan to  Pineview is running well and should be in good shape for the rest oft the summer. Regarding the carbon-free power project, Mr. Johnson reported that we. have been in  23 RESOURCE UPDATE  25 executive sessions at least once a week for the past month and are at a point where we: must 26 make another decision. Itis hoped that more information will be available (from executive 27 sessions) next week. BCL&P initially signed up for 5 MW of power and it was supposed to 28 be on line in 2027. The on-line date has been pushed to 2029 and at a cost (based on 2018 29 dollars) ofs $55 per MWH. We signed up later for the Jump program, based on the premise 30 that the Department of Energy would be absorbing all capital costs and operate the project 31 for the first 10 years. The Department of Energy has changed its plan ofinvolvement and 32 now wants toj put money in, but ownership would be effective at the time the project  33 becomes operational.  34 35  Mr. Johnson reviewed the financing and subscription timetable and said that, based  36 on current information, BCL&P would need to decide as to ouri involvement within the next 37 60 to 90 days. At the present time, Mr. Johnson said he is concerned about whether the 38 project is viable, based on current subscription commitments. He said hei is hopeful of 39 having concrete information in July and it would be helpful to: meet with the Council  40 regarding this project.  41 42  Mr. Johnson reviewed that the Red Mesa solar project (25-year life span) is moving  43 forward and we. have signed up for 6MW; and UAMPS is looking at another solar project in 44 Tooele county that could be another resource for us. Although the sun is not as strong in 45 this area, there would not be transmissions concerns that come with projects further away. 46 This would also be a 25-year contract and at a cost of $.031 per KWH. He suggested that  Page 4 of5    (PC minutes. June 23, 2020)  there could be a way ofmaking this a high-load product. He asked: fors support from the  2 Commission to sign up for another 51 MW ofe energy ini this project. 5 being up and down, and record-breaking temperatures.  3 4 6 8 10 11 12 13 14 15 16 17 18 19 21  Discussion followed regarding the unusual scheduling or power due to Air Products  7 Thej following items were included ini the packet, but not discussed in the meeting:  9 POWER SYSTEMS OPERATIONS REPORT  a. April Resource Report b. May 2020 Lost Time/Safety Report C. May 2020 Public Relations Report d. May 2020 Outage Reports  20 OTHER BUSINESS  Mr. Johnson reported that the UAMPS meetings scheduled August 17 and 18 will be  22 in Zoom format. Chairman Pitcher asked about other meetings previously scheduled and 23 Mr. Johnson said that all meetings have been cancelled, except the annual IPP meeting in 24 December and the UAMPS annual meeting. (And it was noted that they might still be  25 cancelled). 26 27  Commissioner Irvine reviewed that he has had communication with Bountiful  28 citizens regarding the carbon free power project and he feels strongly that we need tol have 29 an effective public relations component inj place tol help the community understand the facts 30 ofthis possible project. A briefd discussion followed, and Mr. Johnson said he would get 31 back to Commissioner Irvine regarding this concern. It was suggested that a public hearing  32 could be held on an informal basis. 34 NEXT POWER COMMISSION  33 35 37 the meeting. 38 39 ADJOURN 40  The next meeting oft the Power Commission meeting is scheduled for August 25,  36 2020. Depending on conditions of the pandemic, Allen Johnson will confirm the format of  The meeting adjourned at 9:17 a.m. on a motion made by Commissioner Cushing  41 and seconded by Commissioner Summers. Voting was unanimous with Commissioners 42 Pitcher, Becker, Bell, Cushing, Irvine and Summers, and Councilmar)ligginson voting  43 "aye". 44 45 46  f  Page 5of5