MINUTES OF THE COMBINED MEETING OF THE BOUNTIFUL CITY COUNCIL POWER COMMITTEE AND' THE BOUNTIFUL CITYI POWER COMMISSION  April 7,2020-8 8:00 a.m. Those in Attendance  5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 4J 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 40  Power Commission Jed Pitcher, Chairman Susan Becker* Dan Bell* John Cushing* David Irvine* Paul Summers* City Council/Mayor Randy Lewis, Mayor* Kendalynn Harris* City Administration Gary Hill, City Manager  Power Department Allen Johnson, Director Jay Christensen Alan Farnes* Jess Pearce* Luke Veigel* Recording Secretary Nancy Lawrence*  Richard Higginson, City Council Rep.  Galen Rasmussen, Assistant City Manager  *Attended electronically via Zoom, Meeting ID; #575098-928, in conformance with COVID-19  guidelines and restrictions. WELCOME  Chairman Pitcher called the meeting to order at 8:10 a.m., took roll call, and welcomed  those in attendance. Jay Christensen offered the invocation.  BUDGET PRESENTATION  Mr. Johnson welcomed the allendees and thanked them for their attendance. He noted that the staffhas worked for several months in preparing the FY 2021 Budget Overview and he thanked them for their hard work. He then turned the time to Jay Christensen toj present the proposed budget overview. Mr. Christensen narrated a PowerPoint presentation ofthe FY2 2021 proposed budget for Bountiful City Light & Power, balanced at $42,210,748. This proposed 2.0 % increase to Rates (with ai two-tier KWH rate system for residential customers)  budget, which is up $8,006,502, includes:  Increases to two Connection Fees No change tol Deposits Paying off the 2010 Bond ($9,350,000) systems; and  Continued emphasis on maintenance and upgrades oft transmission and distribution Proposed changes to Electric Rate Schedules and Electric Service Policies & Agreements  Page 1 of7    (PC/CC minutes. April 7,2020)  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  The bulleted categories above were then presented in greater detail, as follows. Operating Revenue is proposed at $28,342,893, up $142,136 with the proposed rate increase. This includes Electric Metered Sales of $25,108,154, up $208,154, and Air Products Income of$2,413,073, up $35,997, partially offset by Contribution in Aid to Construction of  $250,000, down $100,000 with fewer projects being done.  Personnel Services (included in Operating Expenses) is proposed at $4,849,728, up $211,960 and includes merit increases for 10 employees, a 2.0% Cola for all employees, an adjustment to Tier 2 retirement benefits, and a 6.0% increase for employee medical insurance.  There is noj proposed change in the number ofemployees.  Operations and Maintenance (also included in Operating Expenses), is proposed at $19,617,136, down by $(102,219). Major expense categories in this sub-section are Power Generation & Resources, Distribution, Street Lights, Special Equipment, Substation, and  Contingency.  Non-Operating Revenues & Expenses are proposed at ai net expense ofS(9,225,214), and are up $(8,707,595). This category includes bond principal and interest payments and the proposal toj pay off the 2010 Bond on 01 November 2020. Paying offthe bond at this time will  produce ai net financial gain. include the following:  Capital Expenditures, $4,320,000, are down by $(386,000) from the current year and $1,100,000 for buildings (security wall, paving, and landscaping) $200,000 for the Distribution system to begin remote meter collector system $30,000 Distribution Street Lights for 10: new street lights on Bountiful Blvd. $450,000 for a new double bucket truck and a tree trimming truck $1,500,000 to start rebuild of the NW Substation $550,000 to continue the upgrade of Feeder #575 along 3100 South $200,000 for upgrade oft the Distribution system for Feeder #272 (from the NW substation to 400 East and 11001 North $50,000 for the Distribution System on Stone Creek Property $40,000 for the Distribution System Feeder #373 East  $200,000 for the Distribution System to begin a study for aj photovoltaic system and  possible battery system.  Operating Transfers In (Out), is proposed at $10,881,420 net transfers in to the Power Department, and includes $13,392,235 from Retained Earnings (to pay off the 2010 Bond, the amortization of the San Juan power plant, and to fund several of the capital Expenditure  projects), and the $(2,510,815) transfer out to the general fund.  Mr. Christensen reviewed the 10-year Capital Plan, proposed at $31,670,000 total capital expenditures, noting that many of those projects will be started during the 2020-21 budget year. A lengthy discussion followed regarding the merits of paying off the 2010 bond, with the most significant being the future savings of approximately $1 million per year. There are  Page 2 of7    (PC/CC minutes April7,2020)  currently no plans to take on additional debt. Concerns about the Cash Flow projection were voiced and it was the general consensus that the plan, as presented, would be okay.  Thej proposed rate increase of2.0% on all monthly customer charges (with a two-tier KWH rate system for residential customers) was discussed in terms ofhow it impacts BCL&P customers, and rate comparisons with Rocky Mountain Power. It was noted that the increase in a base cost factor would provide more stability than attaching the increase to usage. Discussion followed with an exploration oftweaking the rate schedule to minimize any negative impact to low income customers. The proposal has almost zero impact on users up to 800 KWH and it still  5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 4J 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 40  provides for funding to maintain the system and plan for future resources.  Thej proposed budget addresses COVID 19 by allowing for re-allocation of personnel to maintain pandemic guidelines and still provide essential electrical services to the City and its  citizens.  In conclusion, Mr. Christensen stated that iti is the staffrecommendation to approve the proposed FY2021 Budget (as stated on page 1, lines 36-45). Councilman Higginson asked again about delaying paying off the bond, with concern regarding the Cash Flow. Following discussion, Mr. Hill said that he felt comfortable with the cash position ift the bond were to be paid offin FY 2021. Commissioner Pitcher asked about the timing ofai rate increase with regard to COVID-19 ramifications. Again Mr. Hill supported the proposed plan, noting that a small, consistent rate increase had been planned in to the budgeting process and is necessary to maintain ai reliable power resource for Bountiful residents. Even with the rate increase, Bountiful residents will enjoy a less expensive power resource, with prudent infrastructure maintenance included, and an annual contribution from the Power Department to the General  Fund of the City.  Commissioner Irvine made ai motion to approve the BCL&P Proposed FY 2021 Budget as presented and discussed, with the stipulation that at the end of May (and again in September if deemed necessary) the rate structure be re-visited just in case the economic uncertainty gets worse. Commissioner Cushing voiced approval of this motion and the motion was seconded by Commissioners Summers. Voting was unanimous with Commissioners Pitcher, Becker, Bell,  Cushing, Irvine, and Summers and Councilman Higginson voting "aye".  The City Council Power Committee then took action as follows: Councilwoman Harris made a motion to accept BCLP's Proposed FY 2012 Budget as presented and discussed. Mayor Lewis seconded the motion which carried unanimously with Councilpersons Higginson and  Harris and Mayor Lewis voting "aye".  The Joint Meeting concluded at 9:30 a.m., the City Council Power Committee was excused, and the BCL&P Power Commission continued its  regular meeting.  Page 3 of7    (PC/CC minutes. April 7,2020)  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  MINUTES - November 26, 2019 and February 18, 2020  Minutes of the regular meeting oft the Bountiful City Power Commission held November 26, 2019 were presented and unanimously approved on a motion made by Commissioner Summers and seconded by Commissioner Bell. Voting was unanimous with Commissioners Pitcher, Becker, Bell, Cushing, Irvine, Pitcher and Summers and Councilman Higginson voting  "aye".  Minutes oft the meeting of the Bountiful City Power Commission held February 18, 2020 were presented and approved, with the correction that Jed Pitcher was the Chairman ofthe subject meeting, not John Cushing. Councilman Higginson motioned for the approval and Commissioner Becker seconded the motion. Voting was unanimous with Commissioners Cushing, Becker, Bell, Irvine, Pitcher and Summers and Councilman Higginson voting BUDGET REPORT - YEAR-TO-DATE 8-MONTH PERIOD ENDED291 FEBRUARY Mr. Christensen presented the Budget Report for the Year-To-Date (YTD) 8-Month Period Ended 29 February 2020. Hei noted that July through January 2020 is final, and February 2020 is preliminary, though most line item YTD amounts will: not change from this report when  "aye".  2020  they are final.  Total Revenues YTD were $19,509,365, below its historically allocated budget (HAB) by $(790,051). Major items (below) budget included: electric metered sales (EMS), below its HAB by $(656,836) or 3.7%; Air Products, below its HAB by $(102,235) with al load factor of 63.0%;  and Contribution in Aid to Construction, below its HAB by $(131,249).  Total Operating Expenses YTD were $18,302,305, below its HAB by $1,587,633. Major items (above) or below their HAB'si included: power costs, below its HAB by $1,286,171 with the lower EMS plus careful purchasing and scheduling of power resources; and distribution expense, below its HAB by $140,239 with work on budgeted projects. Street light expense was  above its HAB by $(162,840) with work on budgeted projects. Total Capital Expenditures YTD were $627,612.  The Net Margin YTD was $549,447, above its HAB by $502,049, with lower than budgeted power and other costs that more than offset lower than budgeted revenues. Total cash and cash equivalents were a net $26,897,370 at month end, up $850,167 from Following a brief discussion, Commissioner Irvine made ai motion to accept the Budget Report as presented. Commissioner Bell seconded the motion which carried unanimously. Commissioners Pitcher, Becker, Bell, Cushing, Irvine, and Summers and Councilman Higginson  $26,047,203 at 30. June 2019.  voted "aye".  Page 4 of7    (PC/CC minutes April7 17,2020)  ECHOT TURBINE REPAIR APPROVAL  Alan Farnes reported that Prime Machine should be completed with the reassembly of all three turbines by April 13th. A refurbished runner was installed in Unit 1 (the new runner that was ordered from China still does not have a delivery date). He said that the scope ofthe work done by Prime Machine has grown (due to the need to refurbish an old: runner and then remove it and replace it with the new: runner: next winter) and therefore additional work needs to be approved by the City Council. He reviewed the additional work that Prime Machine will do, ($475,302) as well as additional required work by other contractors ($133,163) and stated that the total project cost toi repair all three turbines will be approximately $1,227,232.  4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 45 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43  Itist the staff recommendation that the additional $475,302 for Prime Machine Inc. be approved. Following a short discussion, Commissioner Summers made ai motion to recommend tot the City Council that the additional expenses to Prime Machine Inc. be approved, as recommended. Commissioner Bell seconded the motion which carried unanimously. Commissioners Pitcher, Becker, Bell, Cushing, Irvine and Summers, and Councilman Higginson  voted "aye".  PACIFICORP 138 KV SUBSTATION EXPENSES  Alan Farnes reported that the 138 KV Substation rebuild project was substantially completed and fully operational in May 2019. However, we recently received an invoice from PacifiCorp for their engineering costs associated with the substation upgrade (as per our operating.agreement with them). They also had to remove a significant number of control cables that ran between our old control building and their control building and then install new control cables running from our new control building to their control building. This required a  significant amount of work by their Substation Technicians.  Itist the recommendation ofs stafft that this invoice in the amount of$31,205.15 be approved. Councilman Higginson made ai motion to recommend to the City Council payment of the PacifiCorp invoice, as presented. Commissioner Summers seconded the motion and voting was unanimous. Commissioners Pitcher, Becker, Bell, Cushing, Irvine and Summers, and Councilman Higginson voted "aye". It was noted that the total for this project came in under  budget.  TRANSFORMER BID PURCHASE  Mr. Pearce reviewed that our inventory of overhead and pad mount transformers is running low and bids were: received from two vendors for the needed transformers:  6ea. 37.51 KVA] pole mount 10 ea. 50 KVA pad mount 14 ea. 50 KVA pole mount 16 ea. 1501 KVA pad mount lea. 300 KVA pad mount lea. 500 KVA pad mount  Itis the recommendation ofs staff to accept the low bid from Anixter Power Solutions for ERMCO transformers at a total cost of $78,535.00. Commissioner Cushing made ai motion to recommend to the City Council that the bid from Anixter Power be approved as recommended.  Page 5 of7    (PC/CC minutes. April7,2020)  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  Commissioners Summers seconded the motion and voting was unanimous. Commissioners Pitcher, Becker, Bell, Cushing, Irvine and Summers, and Councilman Higginson voted "aye".  STEEL POLE PURCHASE  Mr. Veigel reported that 29 new poles (7 ofv which are steel) are needed as part oft the complete rebuild of Feeder 575 on 3100 South between Orchard Drive and 400. East. An invitation to bid for the 7 steel poles was sent out to five vendors and three responded. Itis the recommendation of staff to accept the low bid of$169,000: for seven (7) 24-inch steel poles. Discussion followed regarding the need for steel poles VS wood (wood poles are 18" in diameter) and VS a 30-inch steel pole, Mr. Veigel explained that the objective is to use aj pole strong enough to hold up better to a car collision, and yet minimize blocking vision. The more narrow aj pole is at its base, the thicker the steel will be. Commissioner Summers made ai motion tor recommend approval ofthe bid from MICA Steelworks, Inc. in the amount of $169,000.00 and Commissioner Cushing seconded the motion which carried unanimously. Commissioners Pitcher, Becker, Bell, Cushing, Irvine and Summers, and Councilman Higginson voted "aye".  DIRECTIONAL BORING BID APPROVAL  Mr. Veigel reviewed that there are several underground distribution circuits and streetlight circuits throughout the system that need tol have new conduit installed and repairs made. These projects are designed to increase the system reliability, provide additional capacity and back up to the system, add additional lights to Bountiful Blvd., and to repair existing lights that no longer work. To minimize the inconvenience to residents and limit the restoration of property, bids have been requested from contractors to install these conduits using directional  boring.  Bids were received from four contractors and it is the recommendation of stafft to award the bid to Americom Technology, Inc. (low bidder) int the amount of $261,077. This work is included in the FY 2019-20 budget. Following a short discussion, Commissioner Bell motioned to recommend to the City Council that the bid be awarded to Americom Technology, Inc., as presented. Commissioner Becker seconded the motion and voting was unanimous. Commissioners Pitcher, Becker, Bell, Cushing, Irvine and Summers, and Councilman Higginson  voted "aye". PLANT UPDATE  Alan Farnes reported that the two Titan turbines at the Power Plant have been repaired and are now available for operation. Solar Turbines submitted a quote of $2,280,610.06 for this project, but! have invoiced us for $1,697,144.46, for a total savings of $583,465.60. The bulk of this savings was the result of our Power Plant staffa assisting with the work, thereby reducing the  labor from Solar Turbines, Inc. included ini the initial bid.  Mr. Farnes also gave an update on repair work which is being done at the Pineview Hydro plant. He explained that two actuators had failed, and two new actuators were ordered from Germany in November. They arrived in March and it is hoped that they will be re-installed and ready to run the first part ofnext week. The cost oft this project is just over $35,000 and was  approved last November.  Page 6 of7    (PCICCminutes April 7,2020)  RESOURCE UPDATE  Mr. Johnson reported that there is nothing new: from UAMPS - they will be operating The trip to Corvallis to view the proposed nuclear project has been cancelled and will be  and our contracted power has not been changed.  5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22  re-scheduled.  The following items were included in the packet, but not discussed in the meeting:  POWER SYSTEMS OPERATIONS REPORT a. January and February Resource Report b. February 2020 Lost Time/Safety Report C. February 2020 Public Relations Report d. February 2020 Outage Reports  OTHER BUSINESS  The. APPA national conference has not been cancelled, but Mr. Johnson suggested that Commissioner Becker reported that in a department meeting at her work, it was noted that Standard and Poor's and Goldman Sachs sources had predicted a more optimistic outlook  airlines reservations not be made at this point.  26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 AA  about the economy.  NEXT POWER COMMISSION  The next meeting of the Power Commission meeting is scheduled for May 26, 2020. Depending on conditions of the pandemic, Allen Johnson will confirm whether or not the  meeting will be held; and in which format.  ADJOURN  The meeting adjourned at 10:00 a.m. on ai motion made by Commissioner Summers and seconded by Commissioner Cushing. Voting was unanimous with Commissioners Pitcher, Becker, Bell, Cushing, Irvine and Summers, and Councilmankijgginson voting "aye".  C  Jed Pitcher, CHAIRMAN  Page 7 of7