MINUTES OF THE BOUNTIFUL CITY POWER COMMISSION October 22, 2019-8:00 a.m. Those in Attendance  4 5 6  7 Power Commission 8 John Cushing, Chairman 9 Susan Becker 10 Dan Bell 11 Jed Pitcher 12 Paul Summers 13 14 City Administration 15 Gary Hill, City Manager 16 Clinton Drake, City Attorney 19 David Irvine, Commissioner  Power Department Allen Johnson, Director Jay Christensen Alan Farnes Dave Farnes Jess Pearce Shaun Stahle Luke Veigel Recording Secretary Nancy Lawrence  17 18 Excused 21  20 John Marc Knight, City Council Representative  22 WELCOME  Chairman Cushing called the meeting to order at 8:00 a.m. and wclcomed those in attendance.  Commissioner Becker offered the invocation.  26 MIINUTES = September 24, ,2019  27  Minutes of the regular meeting oft the Bountiful City Power Commission held September 24,  28 2019 were presented and unanimously approved as corrected (p. 40 of5, line 29: November changed to 29 October) on a motion made by Commissioner Summers and seconded by Commissioner Pitcher. 32 BUDGET REPORT-) YEAR-TO-DATE 3-MONTH PERIOD ENDED 30 SEPTEMBER, 2019 34 September, 2019 and noted for Fiscal Year 2020 the months of. July and August 2019 are final, and 35 September 2019 is preliminary (though most line items YTD amounts will not change from this report 36 when they are final). The independent audit has been completed and will be presented to the City 37 Council for approval tonight. Forl FY: 2020, estimates for Electric Metered Sales, Air Products, and 38 UAMPS Power Costs for. July 2019 and August 2019 are used only in the income statement and are not 39 included in customer accounts receivable and accounts payable on the Balance Sheet and Cash Flow  30 Commissioners Cushing, Becker, Bell, Pitcher, and Summers voted "aye".  31 33  Mr. Christensen presented the Budget Report for the Year-do-Date 3-Month Period Ended 30  40 Statement. 41 42 42,  As a matter to note, he reported that on November 1, 2019 the $705,000.00 annual  principal  payment will be made for the 2010 Bond, and a $267,914.50 semi-annual interest payment will be made. Iti is anticipated that an Interest Expense Subsidy of$113,086.71 will also be received tol help offset the  interest payment.  Page 1 of5    (PC minutes October. 22, 2019)  1  Total Revenues YTD were $8,177,230, below its historically allocated budget (HAB) by  2 $(466,544). Majori items below their HABs included: Electric Metered Sale, below by $(302,156) with 3 milder summer weather; Airl Products Income, below by $(104,394) with a 59.5% load factor; and  4 Contribution in Aid to Construction, below by $(68,457)  5 6  Total Operating Expenses YTD were $7,409,650, below its HAB by $1,223,379. The major  7 items below their HABs were. Power Costs, below by $1,182,444, attributed to lower EMS and careful 8 purchasing and scheduling of power resources; and Hydro Transmission which was below its HAB by 9 $69,763. Street Light expense was above its HAB by $(184,556) with work on budgeted projects,  10 primarily boring by third-party contractors.  11 12 15 16 19 20 22 23  Total Capital Expenditures YTD were $57,692 with the late completion of the service body for  13 truck #5072 (which should have been done last year), plus work on the Holbrook pump and feeder #673  14 # #271 inter-tie projects.  Total Labor and Benefits Expense YTD was $978,674. Asof21 September 2019 (the last pay  17 period paid in the YTD period), 22.7% or $1,054,616 oft the TL&B budget could have been spent; the  18 actual TL&B was $75,942 below that target.  The Net Margin for the YTD was $709,889, above its HAB by $738,576, with lower than Total cash & cash equivalents were ai net $28,164,095 ati month end, up $2,116,892 from  21 budgeted power costs that more than offset lower than budgeted revenues.  24 $26,047,203 at. June 2019, primarily due to the $1,224,621.12 UAMPS billing for September which was 25 not yet processed at month end. In response to a question regarding Deferred Inflow Pension and 26. Deferred Inflow OPEB, Mr. Christensen explained that these two accounts are associated with payments 29 Following a brief discussion, Commissioner Pitcher made ai motion to approve the Budget Report for the 30 3-Month Period Ending September 30, 2019, as presented. Commissioner Becker seconded the motion 31 and voting was unanimous in the affirmative. Commissioners Cushing, Becker, Bell, Pitcher, and  27 made to the State for retirement benefits.  28  32 Summers voted "aye".  33 35  34 DIRECTIONAL BORING UPDATE  Mr. Veigel reported that Hunt Electric has all but finished the work on Feeder 273 located at  36 1000 North between 500 West and 200 West. There is an additional small section ofwork that needs to 37 be done ini this area and by getting it completed; we will be able to move: forward with replacing some 38 bad overhead poles south of1 1000 North. Staffi is requesting permission to extend this project by adding 39 two more bores to tie into existing conduit systems. This includes 3x4 4" conduits and 3x3" conduits 40 300 feet along 1000 North between 200 West and Chapel Drive, as well as 1x4 4" conduit 180 feet fora 41 new underground service to a church. In response to a request for a quote, Hunt Electric submitted a 42 quote of$34,118.00 to complete this additional work. Byi installing these conduits, we will be 43 progressively moving forward with a new Feeder 273 as well as a loop system for Viewmont High  44 School. 45 46  Following a short discussion, Commissioner Summers made ai motion to recommend to the City  Page 2 of5    (PCI minutes October. 22, 2019)  Council that the contract with Hunt Electric be extended by $34,118.00 to complete the work as described by Mr. Veigel. Commissioner Pitcher seconded the motion which carried unanimously.  Commissioners Cushing, Becker, Bell, Pitcher and Summers voted "aye".  5 ECHOLINE REPAIR UPDATE  6  Fori informational purposes, Mr. Pearce showed the commission a section of burned up  7 underground that had to be repaired (along Oakwood Drive). He noted that the City has over 1.41 million 8 feet ofunderground wire which is subject to deterioration; and replacing this wire will be ai function of  9 the budgeted work each year.  10 11  He reviewed that all of our work on the Echo transmission line has been completed for the fall.  12 He then showed slides/video which depicted work that has been done on the line, and described the 13 challenges associated with working in this terrain. He noted that the frayed wire (which necessitated the 14 repairs), was most likely caused by bullets. Cache Valley Electric has assisted us with some oft the  15 repairs on this line and have been very good to work with.  16 18  17 ECHOTURBINE REPAIR UPDATE  Alan Farnes reported that the water releases from Echo were shut down for the water year on  19 October 15th and the penstock for units 2 and 3 have been de-watered toj permit Prime Machine to start 20 inspecting the turbines to determine the necessary maintenance/repairs. He used slides to show the 21 location and size of the turbines and their wicket gates and the crackedwheels. Units 2 and 3 will be ?2 worked on first, and then Unit 1 will follow. We have two spare wheels = one large and one small, but we will need toj purchase at least one additional wheel. Because the wheels are SO old (1986 vintage), a mold will need tol be made, and it might be a good idea to get spares while the mold is built. In the 25 following discussion, the idea of purchasing spare wheels was favored by the Commission.  26 28  27 S&P RATING DISCUSSION  Mr. Johnson reported the S&P bond rating is typically updated every two years, and our bond  29 rating has been raised from an "A-"toa" "AA-". He referred to a letter and enclosure from S&P Global 30 which reported the change and the rationale supporting the rating. The rating reflects BCL&P'sstrong 31 enterprise risk profile and extremely strong) financial risk profile. The strong enterprise risk profile 32 reflects "our view oft the large amount of revenue from residential customers and incomes in the service 33 area above the national median." The extremely strong. financial risk profile "reflects our view of robust 34 fixed-charge coverage (FCC), significant liquidity, and a low debtto-capitalization ratio". It was noted 35 that this rating is for only the Power Department; recognizing that Bountiful City does not have any 36 bonds. The letter also affirmed that the outlook for the rating for the future is stable, and it is unlikely  37 that the bond rating would be lowered during the next two years.  38 40  39 CALIFORNIA OUTAGES DISCUSSION  Mr. Johnson referred to the situation in California where wild fires are burning, and PG&E turns  41 off power to avoid liability when high winds have the potential to cause more fires. He noted that 42 Bountiful would not face this situation, because Utah has a governmental immunity clause. In the following discussion, it was voiced by some that best practices have not been followed with regard to maintenance oft the ransmisionlistribution system by PG&E, making their equipment more vulnerable  to extreme weather conditions.  Page 3 of5    (PC minutes October 22, 2019)  Mr. Johnson reported that BCL&P was recently billed by Morgan County for costs incurred  2 when a fire was started because ofay problem on our transmission line. This charge will be reviewed 3 based on two factors: (1). BCL&P pays Morgan $8,000/year for fire and police protection; and (2) 4 governmental immunity. We will also investigate the necessity of getting an insurance policy with a 5 high deductible, ifour findings show that we. have liability. Mr. Hill advised that there is a change in the 6 law which provides that the State has agreed to cover the cost of wildfires, providing communities have  7 established and are following mitigation practices. 9 SOLARI INSTALLATIONS UPDATE  8 10  Mr. Christensen reported that there are currently a total of221 solar customers (including  11 residential and commercial net metering and residential feed-in tariff) and the lost revenue to date is 12 $171,165.00. Ini response to a question from Commissioner Becker, Mr. Christensen confirmed that  13 there is less lost revenue, proportionately, from feed-in tariff customers.  14 16 19 20  15 RESOURCE UPDATE  Mr. Johnson reported that interest in the NuScale project is growing and many entities are lining  17 up toj participate in this project. He said that Doug Hunter has met with officials in Washington DC, Las  18 Vegas, the BPA, and other cities.  Riverside and Anaheim, California have considered getting out oft the IPA project, but new  21 discussion has focused on building the new project (which would be obligated to absorb de- 22 commissioning costs of the old plant). Iti is anticipated that Riverside and Anaheim would vote against  23 the gas line contract for the 1, phase ofthis project.  24 26  25 2020CALENDAR APPROVAL  Mr. Johnson reviewed a copy oft the proposed schedule for the 2020 Power Commission  27 meetings. The schedule is based on using the typical fourth Tuesday for the normal meetings. A 28 memorandum listed the following exceptions to that calendar, as well as professional meetings of  29 APPA, IPA, and UAMPS that Commissioners would have interest in:  30 31 32 33 34 35 36 37 38 39 41 43 45 46  February 18, 2020 - several conflicts July 2020 - No meeting  April 7, 2020 -. Joint meeting with City Council - Budget (This date could change)  APPA National Conference June 6-10, 2020, Long Beach CA UAMPS Annual. Meeting August 16-19, 2020, Heber, Utah November 17, 2020-( (Thanksgiving conflict) IPA Annual. Meeting - December 1, 2020 UAMPS. Annual Meeting - December 15, 2020 December 2020 - No meeting  40 The calendar was approved via general consensus.  42 Thefollowing items were included in the packet, but not discussed. in the meeting:  44 POWER SYSTEMS OPERATIONS REPORTS  a. August 2019 Resource Reports  Page 4 of5    (PC minutes October 22, 2019)  2 3 4 5 6 7 8 10 11 13 14 15 ADJOURN 16 19 20 21  b. September 2019Lost Time Related Injuries/Safety Report  c.S September 2019 Public Relations Report D.S September 2019 Outage Reports  9 OTHER BUSINESS  None.  12 NEXT POWER COMMISSION  The next meeting oft the Power Commission will be on November 26, 2019 at 8:00 a.m.  The meeting adjourned at 9:56 a.m. on ai motion made and seconded by Commissioners Summer  17 and Pitcher, respectively. Voting was unanimous with Commissioners Cushing, Becker, Bell, Pitcher  18 and Summers voting "aye".  Ek JedPitcher, Acting Chairman  Page 5 of5