MINUTES OF THE REGULAR MEETING OF THE BOUNTIFUL CITY POWER COMMISSION  May 26, 2020 - 8:00 a.m. Those in Attendance  4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22  Power Commission Jed Pitcher, Chairman Susan Becker* Dan Bell* John Cushing Paul Summers City Administration Gary Hill, City Manager 19 guidelines and restrictions. WELCOME  Power Department Allen. Johnson, Director Jay Christensen Alan Farnes* David Farnes* Jess Pearce* Luke Veige!* Recording Secretary Nancy Lawrence*  Richard Higginson, City Council Rep. David Irvine* (joined the meeting -8:30a.m.)  *Attended electronically via Zoom, Meeting ID #982.8219.5117, in conformance with COVID-  Chairman Pitcher called the meeting to order at 8:05 a.m., took roll call, and welcomed  those in attendance. John Cushing offered the invocation.  26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44,  MINUTES-, APRIL7,2020  Minutes of the. Joint Meeting oft the Bountiful City Council and Power Commission held April 7, 2020 were presented and unanimously approved as written on ai motion made by Commissioner Summers and seconded by Councilman Higginson. Commissioners Becker, Bell, Cushing, Pitcher and Summers and Councilman Higginson voted "aye". BUDGET REPORT- YEAR-TO-DATE 10-MONTH PERIOD ENDED 30 APRIL2020 Mr. Christensen presented the Budget Report for the Year-To-Date 10-Month Period Ended 30 April 2020. He noted that the months of. July 2019 through March 2020 were final,  and April 2020 was preliminary.  Total revenues YTD were $23,663,952, below its HAB by $(911,559). Major items (below) budget included: electric metered sales (EMS) was S(37,137)or3.496 below its historically allocated budget (HAB); Air Products income was $(155,566) below its HAB due to an average load factor of 60.6%; and Contribution in Aid to Construction was $(119,547) below its HAB. Mr. Christensen explained that Air Products did not run in April, but the report shows  income because there is a one-month delay in reporting.  Total Year to Date Operating Expenses was $24,113,003, below: its HAB by $359,878. Major items below their HAB'sincluded: power cost expense was $(736,294) above its HAB as the unbudgeted but needed repairs to the power plant turbines and to the Echo hydro more than  Pagelof5        (PC minutes May 26, 2020)  offset the lower EMS and the careful purchasing and scheduling of power resources; and street light expense was $(139,650) above its HAB with work on budgeted projects, primarily boring by third-party contractors. Major items below their HAB's included: distribution expense was $150,340 below its HAB with work on budgeted projects; computer expense was $85,884 below its HAB as budgeted items have not yet been done; and the transfer to the General Fund expense  5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22  was $102,720 below its HAB with the lower EMS.  Total Capital Expenditures YTD were $823,084 and included $403,758 for the Downtown Plaza, $161,692 for the feeder #673 -i #271 inter-tie, $97,985 for a new vacuum  trailer, and several other budgeted expenditures.  Total Labor and Benefits Expense YTD was $3,602,328. As of18 April 2020, 80.3% of the TL&B budget could have been spent; the actual TL& B was $120,593 below that target. The Net Margin YTD was $(1,272,136), below its HAB by $(1,654,471), due to the unbudgeted repairs to the power plant turbines (inj power costs), the unbudgeted Echol hydro repairs, and the lower than budgeted revenues. Mr. Christensen noted that this below budget number will most likely not recover this year and will necessitate re-opening the budget and  transferring money from Retained Earnings tol balance the budget.  Total cash and cash equivalents were ai net $25,337,247 at month end, down $(709,956) Following a briefdiscussion, Commissioner Cushing made ai motion to accept the Budget Report as presented. Councilman Higginson seconded the motion which carried unanimously. Commissioners Pitcher, Becker, Bell, Cushing, Irvine, and Summers and Councilman Higginson  from $26,047,203 at 30. June 2019.  26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 AA,  voted "aye".  POWER RATE DISCUSSION  Mr. Christensen reviewed the proposed changes to power rates, noting that it was designed to provide a more stable base and yet not penalize residential customers. There is a proposed overall 2.0% increase to rates, consisting ofa $2.00 increase to all monthly customer charges and various changes to KW demand and KWH energy charges. There is alsoa restructuring oft the KWH: rate for residential customers from a one-tiered system to ai two-tier system based on usage (Tier 1: 01 to 4001 KWH; and Tier 2: Over 4001 KWH). He reviewed tables which showed a comparison of] BCL&P and Rocky Mountain Power rates with break-even usage  points for both winter and summer billing.  Commissioner Becker voiced concern about whether or not the proposed newi rates would penalize larger families. She stated that she would like for Bountiful to be a "family friendly" community. Mr. Johnson pointed out that the increase in usage usually does not rest on the number of people in the house, but the more "widgets" that are added and features that are used.  Basic electrical applications for a household will remain quite constant.  Page 2 of5    (PC minutes May 26, 2020)  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46  2010 BOND DISCUSSION  Mr. Christensen reviewed that the $9,350,000 20101 Bond can be paid off on November 1, 2020 and result in net savings ofa approximately $1 million per year for FY2 2022, FY 2023, and FY2 2024. He reviewed the net payments scheduled for FY 2021 (ifwe elect to not pay off the bond) and noted that BCLP has no plans to take on additional debt. He reviewed a cash flow chart (FY2020-1 FY2031) that demonstrated Projected Ending Cash relative to the minimum cash AA- rating, which would be a key factor if we did not pay off the bond. However, without  ab bond, the matter of! bond ratings becomes mute.  Commissioner Bell asked again about the wisdom of paying the bond off early and Mr. Johnson said the major reason for the early pay-off would be the savings in interest expense paid. Mr. Hill added that a 6-month cash on hand balance should be enough to fund an average year's expenses, and we will still have that even with paying offt the bond. Commissioner Becker said  that she felti it makes total sense toj pay off the bond early.  COVID 19) DISCUSSION  Mr. Pearce reviewed the department's scheduling which has been used for COVID 19, but stated that employees are back to regular schedule and using face masks when interacting with the general public. Social distancing is used when necessary, and outside visitors are encouraged to call or use email. He reviewed the impact ofCOVID 19 on our accounts receivable for both commercial customers (107 with balances more than 31 days past due/ $13,980) and residential customers (1,176 with balances more: than 31 days past due/ /$82,507). City Hall has started sending out late notices, but no disconnects are being done and aj process  has been developed to assist with late payments.  Mr. Hill reported that, based on a conversation with the City Council, shut offs will not be done on customers who can demonstrate they have had a negative effect from COVID,  starting next week.  ECHO/PINEVIEW PROJECT UPDATE-I DISCUSSION  Alan Farnes showed pictures of the new equipment (purchased from Germany) which has been installed at the Pineview hydro station, as well as additional modifications which were made to this equipment by Prime Machine. The vault where this equipment is located is approximately 20-25 feet deep and the lid to the vault is 1-ft. thick. Mr. Farnes showed slides of the location and explained the process of getting the new equipment installed. Thel hydro was  ready to run on. April 15 and is currently producing 700 to 900 KWH.  Mr. Farnes explained that repairs on Units 1 and 3 at Echo hydro are completed and running. When Unit 2 was tested, it was running hot and it was found that al bearing needed to be refurbished. He showed pictures of the faulty bearing and explained the process of repairing it. The cost for this extra work was approximately $16,000. Itisl hoped that all three units will  be working in the next 1-1/2 weeks. Echo is currently producing 1.71 MW.  DIRECTIONAL BORINGI UPDATE  Mr. Veigel reported that bids were requested several weeks ago for the directional boring projects. Americom was awarded the bid and are doing an excellent job. He explained a street  Page 3 of5    (PC minutes May 26, 2020)  map (3100 South Orchard Drive area between 625 West and 500 West) which depicted three different kinds of work: street lights, feeders, and distribution lines. Once the lines have been bored, Wasatch Electric will pull and terminate the wire for the street lights. The feeder and distribution lines are currently being worked on. Two new street light projects were identified on 900 East and 2000 South which we will get bids on from Americom on and do later.  5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22  RESOURCE UPDATE  Mr. Johnson reported that the IPP project is still moving forward. Itis a little behind schedule, but iti is anticipated that IPP will be converted to gas for the summer of2025. California is attempting tol be ready to use hydrogen (along with the salt domes) to fully move  away from gas.  Another resource that UAMPS is looking at is a solar project near Tooele which is projected to come in under $.03 per KWH. There will be another update on that coming up next  month.  He said there has been an executive session on the carbon-free nuclear project, but the details were somewhat confusing. Itisrelated tol Department of] Energy (DOE) not willing to operate the first unit for the first 10 years. He reviewed Bountiful's position. There will be another Zoom meeting in one week and they will go over the details again and this project will Thefollowing items were included in the packet, but not discussed. ini the meeting:  be reviewed again in our Power Commission meeting in June.  POWERSYSTEMS OPERATIONS REPORT  26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 AA,  a. March Resource Report b. April 2020 Lost Time/Safety Report C. April 2020 Public Relations Report d. March and April 2020 Outage Reports  OTHER BUSINESS  Chairman Pitcher asked ift the BCL&P budget has been affected by COVID 19 and Mr. Hill noted that the COLA will most likely be eliminated city-wide. He noted that some other City departments will have other reductions, but this department has not included any other cuts. There is a contingency plan, ifneeded to be implemented later in the year, to reduce costs by 5  and/or 10 percent.  Information regarding the UAMPS August meeting will be forthcoming.  NEXT POWER COMMISSION  Page 4 of5    (PC, minutes May 26, 2020)  1 2 3 4 5 6 7 8 9 10 11 12 13 14  The next meeting of the Power Commission meeting is scheduled for. June 23, 2020. Depending on conditions oft the pandemic, Allen Johnson will confirm the format oft the meeting.  ADJOURN  The meeting adjourned at 9:30 a.m. on a motion made by Commissioner Summers and seconded by Commissioner Cushing. Voting was unanimous with Commissioners Pitcher, Becker, Bell, Cushing, Irvine and Summers, and Councilmgp-ligginson voting "aye".  r Jed Pitcher, CHAIRMAN  Page 5 of5