MINUTES OF THE BOUNTIFUL CITY POWER COMMISSION January 28, 2020 - 8:00 a.m. Those in Attendance  5 6  7 Power Commission 8 John Cushing, Chairman 9 Susan Becker 10 Dan Bell 12 David Irvine 13 Jed Pitcher 14 Paul Summers 15 16 City Administration 17 Clinton Drake, City Attorney 18 19 WELCOME 20  Power Department Allen. Johnson, Director Jay Christensen Alan Farnes Dave Farnes Jess Pearce Shaun Stahle Luke Veigel Recording Secretary Nancy Lawrence  11 Richard Higginson, City Council Rep.  Chairman Cushing called the meeting to order at 8:00 a.m. and welcomed those in attendance,  21 recognizing specifically Councilman Richard Higginson who will serve as the City Council 22 representative on the Power Commission. Alan Farnes offered the invocation.  MINUTES- November 26, 2019  Minutes oft the regular meeting of the Bountiful City Power Commission held November 26,  26 2019 were presented and approval was tabled to the next meeting toj provide for an accurate correction  27 to be made (page 5 of6- Resource Update).  28 30  29 ELECTION FOR CHAIRMAN. AND VICE CHAIRMAN  Chairman Cushing said that he will continue to serve on the Power Commission and complete  31 his term, but he recommended that ai new chairman and vice chairman should be elected. Councilman 32 Summers noted that Chairman Cushing has done a fantastic job and has served for a long time. He then 33 made ai motion that Jed] Pitcher be elected to serve as chairman. Commissioner Irvine seconded the 34 motion. Commissioner Pitcher accepted the nomination based on the condition that the chairmanship be 35 rotated (term to be determined). Voting was unanimous with Commissioners Cushing, Becker, Bell,  36 Irvine, Pitcher, and Summers and Councilman Higginson voting "aye".  37 38 41 43 44,  Commissioner Pitcher nominated Paul Summers to serve as Vice Chairman. Commissioner Bell  39 seconded the motion and voting was unanimous. Commissioners Cushing, Becker, Bell, Irvine, Pitcher  40 and Summers and Councilman Higginson voted "aye". 42 HONOR COUNCILMAN KNIGHT  Councilman Knight was unable to attend the meeting. This Agenda item was postponed. BUDGET REPORT-) YEAR-TO-DATE 6-MONTH PERIOD ENDED 31, DECEMBER, 2019 Mr. Christensen presented the Budget Report for the Year-do-Date 6-Month Period Ended 31  Page 1of5    (PCminutes. Jamuary. 28, 2020)  December, 2019 and noted for Fiscal Year 2020 the months of. July through November 2019 are final, 2 and December 2019 is preliminary (though most line items YTD amounts will not change from this 3 report when they are final). Mr. Christensen briefly reviewed the practice oftracking budget via a 10- 4 year past history (Historically Allocated Budget, HAB) which gives ai more accurate perspective to  5 seasonal and delayed billing items.  6 7  Total revenues YTD were $14,832,198, below its HAB by $(659,631). Major items (below)  8 budget were Electric Metered Sales $(478,356), 3.5% below its HAB due to milder summer weather; 9 Air Products $(95,679) with al load factor of only 62.8%; and Contribution in Aid to Construction  10 $(124,748). 11 12  Total Operating Expenses YTD were $13,751,953, below. its HAB by $1,384,156. The major  13 items below its HAB were power costs, $1,224,229, and Computer Expense, $81,779, as budgeted items 14 have not yet been done. Major items (above) budget were Street Light Expense, $(209,906), with work 15 on budgeted projects primarily boring by third-party contractors; Substation expense, $(40,139) with 16 the unbudgeted, but needed $48,243 purchase of remote racking systems for arc flash safety for the 17 Central and SE: substations; and Office and Warehouse Expense temporarily above its HAB $(12,211),  18 with the $19,241 purchase and installation of audio/visual equipment.  19 20 23 24 27 28 30 31  Total Capital Expenditures YTD were $495,400 and included $240,369 for the Downtown Plaza,  21 $191,692 for the feeder #673 - #271 inter-tie, $35,862 for the late completion of the service body for 22 truck #5072, plus work on the NW substation, Feeder #575, the Holbrook pump, and street lights. 25 Capital Expenditures). As ofl December 14, 2019, this account was $75,283 below the target that could  Total Labor and Benefits Expenses YTD was $2,046,655 (included in Operating Expense and  26 have been spent at that time (45.8%).  Net Margin YTD was $584,845, above its HAB by $517,955, with lower than budgeted power Mr. Christensen noted that Total cash and cash equivalents were ai net $26,862,895 at month end,  29 and other costs that more than offset lower than budgeted revenues.  32 up $815,692 from June 30, 2019 year end. He also mentioned that this positive cash position will offset 33 upcoming repair expenses at the hydro and the power plant. Following a brief discussion, 34 Commissioner Pitcher motioned to approve the Budget Report, as presented. Commissioner Irvine 35 seconded the motion and voting was unanimous, with Commissioners Cushing, Becker, Bell, Irvine,  36 Pitcher, and Summers, and Councilman Higginson voting "aye".  37 38 40 42  Mr. Johnson reported that we have been going through the Fitch bond revue and received their  39 preliminary rating (AA-). Thisi is the same rating given by Standard and Poor's.  41 VACUUMTRAILER EXCAVATOR APPROVAL  Mr. Pearce reviewed that the 2019-20 budget included the purchase of a new double buck truck,  43 which has been ordered but will not be delivered until August 2020 (in the next budget year). In order 44 to level out capital expenditures it is requested that the staff be granted permission to purchase a new 45 vacuum excavator thal had been previously identified in the 2022-2023 budget. This equipment will 46 make it possible to work up to 100 feet away from the unit and have good suction and will be  Page 2of5    (PC, minutes. January 28, 2020)  particularly helpful with backyard installations and excavation while repairs are: made on the system. Bids were: requested from two vendors and it is staff recommendation to approve the bid from Vermeer Rocky Mountain for a total price of $97,984.90. (The original budget included a truck, approximately $200,000, which will not be needed with this piece ofe equipment, thus saving approximately $100,000). 5 Commissioner Irvine motioned to recommend purchase oft the Vacuum Trailer Excavator, 6 Commissioner Becker seconded the motion and voting was unanimous. Commissioners Cushing, 7 Becker, Bell, Irvine, Pitcher, and Summers, and Councilman Higginson voted "aye".  8 10  9 TRANSFORMER PURCHASE APPROVAL  Mr. Veigel reported that our inventory of 5001 KVA pad mounted transformers is running  11 extremely low and it is the recommendation ofs staffto purchase two new transformers fori inventory. 12 Thej purchase price each for the transformers is $12,520.00. The recommended vendor is Anixter Power 13 Solutions (where these transformers are in stock, allowing for the purchase without a 16-week delivery 14 date. The total cost for the two transformers is $25,040. Commissioner Summers motioned to 15 recommend purchase oft two 500 KVA pad mounted transformers, as presented. Commissioner Pitcher 16 seconded the motion and voting was unanimous. Commissioners Cushing, Becker, Bell, Irvine, Pitcher,  17 and Summers, and Councilman Higginson voted "aye". 19 ECHO & POWER PLANT REPAIR UPDATES  18 20  Alan Farnes narrated a slide presentation which featured the Echo turbine repair project currently  21 inj progress. He noted that permission was given by the Water Users to take both penstocks out of 22 service at the same time, thus allowing us to disassemble Unit 1 and complete the sand blasting and recoating of that unit at the same time Units 2 and 3 were done. (Because this process creates a great deal ofmess, this has been a great time-saver). Units 2 and 3 are scheduled to be reassembled starting February 3, and they should be back together in about 3 weeks. (Two ofthe old turbine runners were on 26 display in the parking area east oft the office building). These turbine wheels were put in service about 27 34 years ago; it is not known why they developed cracks or what the ramifications would have been if 28 they were not repaired. However, it was: felt that repair oft the equipment was prudent toj provide 29 reliability oft the system and would cost less than potential problems ifr repairs were: not made.  30 31 33 34 36 38  Mr. Farnes also reported that repair oft the two Titan turbines is scheduled to start February 18th At the request oft the Commission, the staff was asked to prepare a course in "Electrical 101"to  32 and is anticipated to take two to three weeks.  35 explain the basics ofe electricity. 37 SYSTEM PROBLEM UPDATE  Mr. Pearce reported that wel have had some system issues. Five poles have burned (caught on  39 fire) since Thanksgiving. Thisi is caused by hairline cracks that you can'tseei in the insulators which 40 then allow an electrical charge to catch the poles on: fire. Some ofthe poles that have burned were 41 replaced within the last ten years. The older insulators on the system (and we have thousands of these) 42 were made of porcelain; the new ones are made of polymer. We are looking for a testing device that can 43 be used to locate faulty insulators. We will continue to apprise the Commission regarding this issue in  4 the future.  OLARINSTALIATIONS UPDATE  Page 30 of5    (PC minutes. January. 28, 2020)  1  Mr. Christensen reported that there are currently at total of223 solar customers (including  2 residential and commercial net metering, and residential feed-in tariff) and the total lost revenue to date 3 is $172,020.00. In response to a question from Commissioner Becker, Mr. Christensen confirmed that 4 there is less lost revenue, proportionately, from feed-in tariff customers. The average lost revenue, 5 customer, is $786.64/net metering residential customers; $1,739.97/net metering commercial customers; per 6 and $372.0residential feed-in tariff customers. Commissioner Irvine asked ifi it has been determined 7 how long the system will continue to take these losses. Mr. Johnson indicated that small losses will 8 continue for this budget year; when new solar resources come on line in 18 months, stronger  9 adjustments will be made.  10 11 12 the meeting. 13 14 RESOURCE UPDATE 15 18 19  Chairman Cushing was excused at this time and Commissioner Pitcher assumed chairmanship of  Mr. Johnson reported that there will be another off-ramp for the NuScale project in March 2020  16 and the City will need to make a decision by that time as to its commitment with NuScale. Ifwe in 17 thc project, it will require IIU actions from the City; but ifv we want out, it will require a Resolution. stay 20 discussion has focused on building the new project (which would be obligated to absorb de- 21 commissioning costs oft the old plant). However, the IPP power is necessary for operation oft the  Riverside and Anaheim, California have considered getting out of the IPA project, but new  22 transmission line to California.  23 24 27 29 32 34 36 37 38 39 40 41 42 43 44 45  Councilman Higginson asked ifnumbers were available to help ini making a decision. Mr.  25 Johnson said that until the NuScale project has firm numbers, the basis for a decision on future resources  26 will be based on (1) keeping rates low; or (2) going 100 percent green.  28 2020 CALENDAR UPDATE  Mr. Johnson said hei included a copy ofthe 2020 Power Commission Schedule, which includes  30 conferences and UAMPS and IPA meetings, because he needs to make reservations for the APPA 31 National Conference (to be held in Long Beach, California June 6-10, 2929) as soon as possible. 33 Thefollowing items were included in the packet, but not discussed in the meeting:  35 POWER SYSTEMS OPERATIONS REPORTS  a. October & November 2019 Resource Reports  b. November & December 2019 Lost Time Related Injuries/Safety Report  C. November & December 2019 Public Relations Report D.N November & December 2019 Outage Reports  46 OTHER BUSINESS  Page 4of5    (PCI minutes. January. 28, 2020)  Mr. Johnson noted that Chairman Cushing was recently honored as the Appointed Official ofthe Year through UAMPS; and the City was honored as recipicnt ofthe UAMPS System Improvement  Award for the work which was completed on the 138 Substation.  5  Commissioner Pitcher asked ifa anything was coming up in the State House or Senate that needed  6 to be monitored related to public power. Mr. Johnson noted HB661 regarding wildfires could impact the 7 City and needed to be monitored. Anotheri issue, which would involve the City indirectly through 8 UAMPS, relates to the Craig tol Mona transmission line and includes REA's, Western, and other  9 providers. 10 12 14 15 ADJOURN 16 19 20 21  11 NEXT POWER COMMISSION 13 the month than normal). at 8:00 a.m.  The next meeting of the Power Commission will be on February 18, 2020 (one week earlier in  The meeting adjourned at 9:35 a.m. on a motion made and seconded by Commissioners  17 Summers and Bell, respectively. Voting was unanimous with Commissioners Becker, Bell, Irvine,  18 Pitcher and Summers, and Councilman Higginson voting "aye".  John    Page 50 of5