MINUTES OF THE BOUNTIFUL CITY POWER COMMISSION September: 24, 2019-8:00a.m. Those in Attendance  4 5 6  7 Power Commission 8 John Cushing, Chairman 9 Susan Becker 10 Dan Bell 12 Jed Pitcher 13 Paul Summers 14 15 Excused 17 18 19 WELCOME 20 22  Power Department Allen Johnson, Director Jay Christensen Alan Farnes Jess Pearce Shaun Stahle Luke Veigel Recording Secretary Nancy Lawrence  11 John Marc Knight, City Council Representative Dave Farnes  16 David Irvine, Commissioner  Chairman Cushing called the meeting to order at 8:00 a.m. and welcomed those in attendance.  21 Commissioner Summers offered the invocation.  MINUTES- August 27,2019  Minutes oft the regular meeting oft the Bountiful City Power Commission held August 27,2019 were presented and unanimously approved as written on a motion made by Councilman Knight and 26 seconded by Commissioner Becker. Commissioners Cushing, Becker, Bell, Pitcher, and Summers and 29 BUDGET REPORT-YFARTODATE 2-MONTH PERIOD ENDED AUGUST31,2019 31 independent audit is completed (expected by November). Because ofthis, the fiscal year-to-date (YTD) 32 July through August 2019 income statement, balance sheet, and cash flow statement in this report are 33 subject to audit adjustments and are also preliminary. FY 2020 estimates for Electric Metered Sales, Air 34 Products, and UAMPS power costs are also included in the report for budget comparison purposes. 37 $(518,436). Major items below their HABs included: Electric Metered Sale, below by $(352,217)or 38 7.0%; Air Products Income, below by $(70,184) with a 56.7% load factor; Contribution in Aid to 39 Construction, below by $(39,383); and Interest Income on Investments and Interest Income on Rate 40 Stabilization Fund which were both below their HABs due to FYE adjustments and no income reported  27 Councilman Knight voted "aye".  28 30  Mr. Christensen reiterated that the fiscal year (FY)2019 figures are preliminary until the  35 36  Total Revenues YTD were $5,085,305, below its historically allocated budget (HAB) by  41 for August. 42 43  Total Operating Expenses YTD were $4,803,966, below its HAB by $1,120,287. The major item below its HAB was Power Costs, below by $941,548, attributed to lower EMS and careful purchasing and scheduling of power resources. Hydro Transmission was below its HABI by $64,501 and included only the annual insurance payment. The significant item above its HAB was Distribution,  Page 1 of5    (PC minutes September 24, 2019)  1 $(26,827). 2 3 5 6 8 9 12 13 15 16  Mr. Christensen pointed out that revenue shortfalls were basically due to timing issues and there Total Capital Expenditures YTD were $4,290 for the feeder #673 - #271 inter-tie and Holbrook Total Labor and Benefits Expense YTD was $641,762. As of24 August 2019 (the last pay  4 are no red flags for expenses.  7 pump. Additional capital projects will be done during the shoulder months.  10 period paid in the YTD period), 15.1% or $698,842 oft the TL&B budget could have been spent; the  11 actual TL&B was $57,0791 below that target.  The Net Margin for the YTD was $277,049, above its HAB by $599,834 with lower than Mr. Christensen pointed out that Accounts Receivables and Accounts Payables become a factor  14 budgeted power costs that more than offset lower than budgeted revenues.  17 of the cash and cash equivalents. Accounts Receivables increased $(628,721) and Accounts Payables 18 decreased $(400,734). In response to a question from the Commission, Mr. Christensen said that the 19 budget includes $80,000 for bad debt write-offs of Accounts Receivables; however, the actual write-off 20 is generally between $20-$30,000. Based on $25: million in sales, this is considered extremely good. 21 Long-term assets decreased significantly by $7,458,442 due to: a $3,812,121 reduction of construction 22 inj progress as fixed assets were completed and capitalized; a $2,432,296 decrease in the investment in 23 the Craig/Mona power line; and the annual decrease of$1,212,235 investment in the San Juan power  24 plant. 25 26 29 30  Commissioner Pitcher asked ift there were any extraordinary expenses associated with the recent  27 fire on the northeast side of Bountiful. Mr. Pearce reported that 10 poles were replaced which involved 28 materials, and some over-time. However, most oft the work was done during the regular work day. 31 August 31,2019, as presented. Commissioner Pitcher seconded the motion and voting was unanimous 32 ini the affirmative. Commissioners Cushing, Becker, Bell, Pitcher, and Summers and Councilman  Commissioner Bell made ai motion to approve the Budget Report for the 2-Month Period Ending  33 Knight voted "aye".  34 36  35 ECHO EQUIPMENT REPAIR: PRIME EQUIPMENT APPROVAL  Alan Farnes reviewed that there are three Francis turbines at the Echo hydro plant and he  37 referred toj pictures of the turbines. We have experienced some problems with the wicket gates on Unit 38 #1 and in. June 2019 Prime Machine Inc. completed an initial inspection ofthis unit. This inspection 39 revealed some serious problems in all three units that need to be repaired after the summer irrigation 40 season is over (October 16, 2019), when the penstock can be de-watered for an extended period of time. 43 inspect all three units, make necessary repairs reassemble, and demobilize is approximately $415,000. It 44 is anticipated that we will use two spare turbine wheels to repair Units #2 and #3, but will need to 45 purchase ai new turbine wheel for Unit #1. The total cost could increase if we get into the project and  41 42  The estimated cost for Prime Machine Inc. to mobilize their crews and equipment, dismantle,  46 find additional damage or need toj perform any upgrades on the three units.  Page 2 of5    (PC minutes September24,2019  Iti is the recommendation of stafft to approve the quote from Prime Machine Inc in the amount of $415,000 to move through thel known problems and repair the three turbine units. These funds and the funds from the transmission line will be funded from the $480,828 operating contingency. It was noted 5 that there has been minimal expense for maintenance ofthis hydro since the project was put on line in 6 1986. Commissioner Summers motioned that the Power Commission recommend to the City Council 7 that approval be given to contract with Prime Machine Inc. ini the amount of $415,000, as presented, for 8 the Echo Hydro repair project. Commissioner Pitcher seconded the motion and voting was unanimous. 9 Commissioners Becker, Bell, Cushing, Pitcher and Summers, and Councilman Knight voted "aye".  10 12  11 SUBSTATION, ARC FLASH EQUIPMENT APPROVAL  Alan Farnes explained that Electrical Consultants Inc. (ECI) has recently completed an arc flash  13 study on our distribution facilities and identified a concern regarding the safety ofthe technician who 14 would be operating the distribution feeder breakers ini the substations. The breakers are housed in a 15 metal enclosure that will direct any arc flash that might occur when opening or closing a breaker directly 16 at the technician who would be operating the breaker. (Photos of a breaker failure arc flash were 17 provided). Itis recommended that this situation be mitigated by providing for the technician to operate 18 the breaker remotely, thereby allowing them tol be 25 feet away from the breaker when it is opened. The 19 substations which will need this equipment are the Central Substation, the Southeast Substation, the 20 Power Plant Taurus breaker, Echo Hydro breakers, and Pineview Hydro breakers.  21 22  Itis the taffrecommendation to approve the purchase of the required equipment from Western Electrical Services, Inc. in the amount of$81,737.00. Commissioner Becker motioned to recommend approval to the City Council for the purchase ofthe required equipment, as presented. Commissioner 45 Pitcher seconded the motion and voting was unanimous. Commissioners Becker, Bell, Cushing, Pitcher  26 and Summers, and Councilman Knight voted "aye". 28 DIRECTIONAL BORING HUNT ELECTRIC APPROVAL  27 29  Mr. Veigel reported that there are 15 underground streetlight circuits throughout our system that  30 have had wire failures which have been replaced by our contract with Hunt Electric. An additional 31 streetlight wire has failed within the last several weeks and it is recommended that approval be given to 32 add this additional wire to the Hunt Electric contract. They have quoted $24,700 to complete this work 33 (along 650 East between Mill Street and 800 South). Itis the recommendation ofs staff to approve Hunt 34 Electric Inc. to directionally bore in a conduit to repair the street lights, as presented. Commissioner 35 Summers motioned that the Power Commission reçommend to the City Council that approval be given 36 for Hunt Electric to perform one additional bore (bringing the total to 16) for street light wire repair, ata a 37 cost of $24,700. Commissioner Bell seconded the motion and voting was unanimous. Commissioners  38 Becker, Bell, Cushing, Pitcher, and Summers, and Councilman Knight voted "aye".  39 41  40 ECHOLINE PROBLEMS UPDATE  Mr.. Pearce reported that Cache Valley Electric will be doing repair work on the Echo  42 Transmission Line (previously identified when BCL&P crews were working on a damaged transmission 13 line pole). They will be mobilizing this week and hope to have the work on the Bountiful side done by Saturday. They will start on the Morgan side on Thursday and hope to have this work done by Sunday. There is a concern regarding the possibility ofs snow storms. Cache Valley will also be completing one  line repair and doing some tree trimming by East Canyon reservoir.  Page 3 of5    (PC, minutes September2 24, 2019)  1 3  2 SOLAR INSTALLATIONS UPDATE  Mr. Christensen provided a spreadsheet for the 12-month period September 2018 to August 2019  4 giving the current financial position ofs solar customers, with total lost revenue from 195 residential 5 customers (on net metering) at $153,853; lost revenue from six (6) net metering commercial customers 6 at $10,440; and revenue lost to 201 Feed-in tariff customers at $7,365. Total lost revenue to solar 7 customers for the 12-month period was $171,658. Discussion followed regarding how solar customers 8 could be supported (not discouraged), and yet not be subsidized by other customers.  9 11  10 RESOURCE UPDATE  Mr. Johnson reported that the San Juan resource was scheduled to shut down in. June 2022.  12 However, there was a recent news article which stated that Farmington, New Mexico has found an entity 13 toj purchase the plant and upgrade it for continued operation. He said UAMPS and Doug Hunter are 14 skeptical about the continued operation oft the San Juan plant, but we will continue to follow its status. 17 interest have signed the contracts and the project is fully subscribed. The average 25-year cost ofthis 18 resource, is 2.3 cents per kilowatt hour (KWH); or about $0.03 cents pcr KWH delivered. Itis  15 16  The Red Mesa solar project is moving forward, as anticipated. All participants who expressed  19 scheduled to come on line the summer of2022.  20 21  The IPP project is still moving forward, but is experiencing a few glitches due to the desire oft the  22 cities of] Riverside and Anaheim to get completely out oft the project. The city ofLos Angeles is willing 23 to pick up their shares; however, there are some liability issues related to getting out oft the contracts that  24 will need to be worked through.  25 26  The NuScale nuclear project is moving forward. The current $6 million funding source will be  27 spent by November and short term financing is being acquired. The project engineer moved to a 28 different firm and sO there is a need to get ai new engineer. The staff board trainer is scheduling a group 29 to go to Corvallis in October and newi information will be available at that time. 31 Thefollowing items were included in the packet, but not discussed in the meeting:  30 32 34 35 36 37 38 39 40 41 42 44 45  33 POWER SYSTEMS OPERATIONS REPORTS  a. July 2019 Resource Reports  b. August 2019 Lost Time Related Injuries/Safety Report  C.: August 2019 Public Relations Report D. August 2019 Outage Reports  43 OTHER BUSINESS  None.  46 NEXT POWER COMMISSION  Page 4 of5    (PC, minutes September24, 2019)  The next meeting oft the Power Commission will be on October 22, 2019 at 8:00 a.m.  ADJOURN  Chairman Cushing officially adjourned the meeting at 9:05 a.m.  5 6 7  g Gay  Page 5 of5