1 2 3 4 5 6 7  MINUTES OF THE. JOINT MEETING OF THE BOUNTIFUL CITY COUNCIL and the BOUNTIFUL CITY POWER COMMISSION  April 9, 2019-8:00: a.m. Those in Attendance  8 Power Commission 9 John Cushing, Chairman 10 Susan Becker 11 Dan Bell 12 David Irvine 13 Jed Pitcher 14 Paul Summers 15 16 Elected Officials Administrators 17 Randy Lewis, Mayor 18 Richard Higginson, City Council 19 Gary Hill, City Manager 20 Galen Rasmussen, Assist. City Manager 21 Clint Drake, City Attorney (AR 9:41a.m.) 24 John Marc Knight, City Council Representative  Power Department Allen. Johnson, Director Jay Christensen Alan Farnes Dave Farnes Jess Pearce Luke Veigel Recording Secretary Nancy Lawrence  22 23 Excused 25 26 WELCOME 27 29 31  Chairman Cushing called the meeting to order at 8:01 a.m. and welcomed those in  28 attendance. Commissioner Bell offered the invocation.  30 MINUTES - FEBRUARY19.,2019  Minutes of the regular meeting oft the Bountiful City Power Commission held February  32 19, 2019 were presented and unanimously approved as corrected on ai motion made by 33 Commissioner Becker and seconded by Commissioner Pitcher. Commissioners Cushing,  34 Becker, Bell, Irvine, Pitcher, and Summers voted "aye".  35 37  36 APPANATIONAL RECOGNITION OF MR. ALLEN JOHNSON  Chairman Cushing reported that Mr. Johnson willl be nationally recognized and will be  38 receiving the Harold Kramer-John Preston Personal Service. Award at the Annual APPA 39 conference in Austin in June - which constitutes an honor to the City and recognizes the great 40 work that Mr. Johnson is doing as Power Department Manager and leader in municipal power  41 entities in the State.  42 44  43 PROPOSED 2019-2020 BOUNTIFUL POWER BUDGET  Mr. Christensen presented the Proposed Bountiful Power Budget for Fiscal Year 2019-  45 2020 (FY2020). The proposed budget is balanced at $34,204,246, with no increases to rates and 46 deposits, some increases in fees, with continued emphasis on maintenance and capital upgrades, 47 and proposed changes to Electric Rate Schedules and Electric Service Policies and Agreements. 48 Hei noted that the budget is designed to meet the following goals: (1) Safety of employees,  Page 1of7    (PC minutes. April 9, 2019)  1 customers, and all who interact with our system; (2) reliability, low cost, and excellent customer 2 service. Additional goals are that (3)revenues from customers should cover all expenses and 3 expenses should be distributed equitably among customer classes. Finally, (4) the department 4 strives to buy and/or generate electricity at the most economical prices; and toj protect customers  5 and ourselves from excessive market price increases.  6 7  Mr. Christensen then reviewed major projects that will be completed in Fiscal Year 2018-  8 2019: the completion ofthe rebuild ofthe 1381 KV Substation; pole testing by Osmose; feeder 9 upgrades (Feeders 575, 673t to 271 Inter-Tie, and 573 to 676 Inter-Tie); street light projects; and  10 an Arc Flash Study.  11 12 14 15 18 19 22 23  The proposed budget for FY 2020 of$34,204,246 is down $434,141 from the fiscal year Operating Revenues of $28,200,757, is down $32,543, and includes a $168,500 decrease  13 20191 budget and includes the following major items.  16 in Contribution in Aid to Construction, a $127,076 increase in Air Products Income, but no  17 changes to Electric Metered Sales or Street Light System Income.  Operating Expenses - Personnel Services at $4,660,756, is up $175,878 with merit  20 increases for 9 employees, a 2.0% COLA for all employees, and a 10.0% increase for employee  21 medical insurance rates. There is no change in the number ofe employees.  Operating Expenses - Operations & Maintenance at $19,696,367 is up $90,854 with  24 Power Generation and Resources expense: is up $70,345, Distribution expense is down $135,040, 25 and Street Lights expense is up $141,000. As aj point ofinterest related to Operating Expenses, 26 Mr. Pearce narrated a video ofa pole being set by hand (the old-fashioned way) because it was 27 located in aj place where our equipment could not be used. The process took 14 men to set the 28 pole in thel hole, in addition to digging the hole. He thanked the Power Commission for their 29 support of equipment that dramatically reduces the manpower needed for pole setting. He 30 briefly reviewed the history ofreplacement of power poles on the overhead distribution system, 31 then reviewed the Distribution budget of $874,080 which included tree trimming, replacement of 32 20 Priority Reject poles, and rebuild oft three overhead sections (500 South, 3200 South, and 33 1200 North at 300 West). He explained that approximately 25 percent oft the 1,400,000 feet of 34 underground wirel has been replaced, and reviewed the $390,148 street light budget and its 19  35 projects. 36 37 39 earnings. 40 41  Mr. Christensen reviewed Non-Operating Revenues and Expenses at a net expense of  38 $517,619, is down $145,232. This includes Bond principal and interest payments, and interest  Capital Expenditures at $4,706,000, is down $1,934,500. Projects included are:  42 Buildings at $500,000; Distribution System at $200,000 to begin meter collection system pilot 43 program; Distribution Street Lights at $60,000 for 20 new street lights on Bountiful Blvd.; and 44 Vehicles at $365,000 for a double bucket truck and substation service truck. Att this point, Mr. 45 Alan Farnes continued the Capital Expenditures budget discussion by covering: the Echo Hydro 46 control system upgrade at $500,000 to begin a $1,000,000 project total; the upgrade of thel NW  Page 2of7    (PC, minutes. April 9, 2019)  1 Substation plus new feeders at $1,500,000 to begin the $4,000,000 estimated total project cost). 2 Then Mr. Luke Veigel concluded the discussion of Capital Expenditures by reviewing the 3 upgrades of] Feeders, including: $550,000 to continue #575; $171,000 to continue the #673 to  4 #271 Inter-tie; $130,000 to begin work on #374; and $430,000 for #373.  5 6  Mr. Christensen reviewed Total Accrual Accounting Adjustments budgeted at  7 $1,212,235, which includes amortization (over five years) of] BCLP's intangible asset to 8 purchase power from the San Juan power plant which is expected to be decommissioned in June  9 of2022. 10 11  Operating Transfers In (Out) are budgeted at a $2,592,220 net transfers in to BCLP,  12 down $568,222. Thisi includes: the transfer to the general fund at $2,490,000 - no change; Use 13 ofRetained Earnings at $5,193,235, down $538,765, to fund many ofthe major capital projects 14 reviewed above (amortization oft the San Juan power plant, building improvements, the meter 15 collector system the Echo hydro controller upgrade, the NW substation, and the upgrades of  16 feeders). 17 18  Mr. Christensen reviewed Total Cash as ofl February 28, 2019 at $25,608,199: subtracting  19 $16,000,000 to maintain the AA- Bond Rating requirement and the $1,100,000 outstanding owed 20 on the 138 KV Substation project leaves only $8,508,199 for Capital Projects. However, 21 BCLP's 10-year Capital Projects Plani totals $32,211,000, leaving a significant shortfall.  22 23 26 27 30 31 32 discussed. 33 34  The 2010 Bond balance is currently $10,745,000, and after the budgeted November 2020  24 principal payment will be $8,630,000. The Bond cannot be paid off or refinanced until after the  25 November 2020 payment is made.  Discussion focused on1 the need for a rate: increase or series of rate increases to satisfy  28 capital project needs, as well as to maintain bond rating requirements. Commissioners Summers  29 and Bell left the meeting at this time. (Commissioner Bell returned later).  Future Power Resources that will impact the budget and power resource options were Based on those projections, Mr. Christensen reviewed the proposed rates, fees, and  35 deposits. There are: noj proposed changes to existing rates or deposits for the FY: 2020 budget; 36 and the proposed increases to fees are related directly to the cost of providing the services. He 37 briefly reviewed the fees that will be adjusted. Rate increases will be considered for future  38 budgets. 39 40  The Electric Rate Schedules and the Electric Service Policies & Agreements were then  41 reviewed. As ai matter ofhousekeeping, Electric Rate Schedule 2 Commercial services for 42 common areas associated with residential complexes will be charged at the commercial rate, and 43 the Points ofDelivery in the Electric Service Policies and Agreements were defined. 46 budget at $34,204,246, with no increases to rates and deposits, increases to certain fees, a  44 45  In summary, it is the BCLP staff recommendation to approve the proposed FY: 2020  Page 3of7    (PC minutes April9,2019)  1 continued emphasis on maintenance and capital upgrades in order to maintain a safe, highly 2 reliable system, and changes to the Electric Rate Schedules and the Electric Service Policies &  3 Agreements. 4 5  Councilman Higginson, defacto Power Committee chairman, recognized Mayor Lewis,  6 who motioned to accept the budget as presented for the Power Department for FY 2020. 7 Councilman Higginson seconded the motion which carried unanimously with Mayor Lewis and  8 Councilman Higginson voting "aye".  9 10  Commissioner Pitcher then motioned on behalf oft the Power Commission to accept the  11 proposed FY 2020 budget, as presented, balanced at $34,204,246. Commissioner Irvine 12 seconded the motion which carried unanimously with Commissioners Becker, Cushing, Irvine  13 and Pitcher voting "aye".  14 15 18 19 20 22 24 2019 25  The. Joint Meeting oft the Power Commission and Council Power Committee adjourned at  16 9:20 a.m. on a motion made and seconded by Mayor Lewis and Councilman Higginson,  17 respectively. Voting was unanimous.  Mayor Lewis, Councilman Higginson, and Mr. Rasmussen were excused at this time.  21 The Power Commission meeting reconvened at 9:23 a.m.  23 BUDGET REPORT - YEAR-TO-DATE 8 MONTH PERIOD ENDING 28 FEBRUARY 26 Ended 28 February, 2019. He noted that. July 2018 through January 2019 are final (with 27 estimates as shown) and February 2019: is preliminary. As mentioned earlier in the meeting, a 28 $267,914.50 semi-annual interest bond payment will be made on May 1,2019 and the 29 corresponding Federal interest expense subsidy of $112,604.46: is expected.  Mr. Christensen presented the Budget Report for the Fiscal Year-to-Date 8-month Period  30 31  Total revenues YTD were $21,181,970, above its HABI by $69,895. Major items above  32 their historically allocated budgets (HAB) were: Electric Metered Sales (EMS), above by 33 $126,447 or 0.7%; and preliminary interest income on investment, above by $74,556. These 34 were partially offset by items below their HABS: Air Products, below by $(36,987); Street Light 35 income, below by $(47,830); and Contribution in Aid to Construction, below by $(70,257). 38 items below their HABs were: Power Costs, below by $852,268; Distribution, below by $83,067, 39 and many other operating expenses below by smaller amounts. They were partially offset by 40 items above their HABs: Street Light expense, above by $(111,275); loss on fixed assets, above 41 by $(95,658) with the transfer oftraffic signal system assets and accumulated depreciation to the 42 City's Engineering Department inl December 2018; Substation expenses, above by $(52,596) 43 with the writeoff of an obsolete transformer; and Special Equipment, above by $(15,466) with an 44 unbudgeted purchase of 5 meter phasing kits inj February to meet OSHA arc flash requirements.  36 37  Total Operating Expenses YTD were $18,132,692, below its HAB by $869,687. Major  45 46  Total Capital Expenditures YTD were $1,256,368, which included materials, labor, and  Page 4of7    (PCn minutes April9, 2019)  1 third-party work on the 1381 KV substation, feeder #575, the feeder #673-#271 inter-tie, feeder  2 #37X East, the Culver's] project, and several other projects.  3 4 7 8  The net margin for the YTD was $1,792,911, above its HAB by $731,122, largely due to  5 lower than budgeted power costs and higher than budgeted EMS revenue, partially offset by  6 higher than budgeted Street Light expense.  Changes in Balance Sheet and Cash Flow Statement YTD were briefly reviewed,  9 following which Commissioner Pitcher made ai motion to accept the budget report as presented. 10 Commissioner Becker seconded the motion which carried unanimously with Commissioners  11 Becker, Cushing, Irvine, and Pitcher, voting "aye". 13 Commissioner Pitcher stepped out of the meeting at this time.  12 14 16 18 small things). 19 21  15 138 SUBSTATIONUPDATE  Mr. Farnes reported that there will still be another payment on1 the 1381 KV Substation  17 because Cache Valley Electric has not completed all oftheir work (painting and miscellaneous  20 RADIO COMMUNICATION PURCHASE. APPROVAL  Alan Farnes reviewed that the Power Department has been using al low band analog (non-  22 digital) radio system for communications for over 45 years. Because it is becoming more: and 23 more difficult to get replacement radios for new vehicles or when ai radio fails, it has been 24 decided to upgrade to a digital communication system. Staff has researched the options available 25 and recommend a system sold by UCS Wireless (the same system currently used by the Street 26 Department). Thej proposed system will have ai main controller for the power plant dispatch 27 center, 25 mobile units for vehicles, 51 handheld radios, ai repeater with a tower and 24-hour 28 battery backup, and frequency license. The total cost for this system, including installation and a 29 2-year warranty is $65,785.00. The City Manager has also reviewed this proposal. Payment will 30 be made from contingency funds. Commissioner Pitcher returned to the meeting at this time. 31 Thej proposal to upgrade the radio system to the digital equipment was briefly discussed and 32 Commissioner Becker then made ai motion toi recommend approval oft the purchase from UCS 33 Wireless for a total cost of$65,785.00. Commissioner Irvine seconded the motion which 34 carried unanimously. Commissioners Becker, Cushing, Irvine and Pitcher voted "aye".  35 37  36 STREETI LIGHT DIRECTIONALDRILLING BID  Mr. Veigel explained that there are many underground street light circuits on our system  38 that need tol have conduit installed. To minimize the inconvenience to residents and limit the 39 restoration of property, it has been decided to use directional drilling for installation oft these 40 projects. There are 19 different project sites which include 11 sites where the current 41 underground wire has burned. The remaining 8 sites are on roads currently identified tol be 42 rebuilt or overlaid by the Street Department. Each bore consists ofi installing conduit, with 43 16,321 total linear feet, along with the individual boxes by each ofthe street lights. Bids were 44 requested from five contractors and two bids were received. Itis recommended by staff that the 45 low bid from Hunt Electric, Inc. be approved in the amount of$ $485,240.00. This is al budgeted 46 item (FY2018-19: and FY 2019-20) and the work will be completed from April 2019 through  Page 5 of7    (PC minutes April9,2019)  1 October 2019. 2 3 6 8  Commissioner Irvine made ai motion to recommend awarding the bid to Hunt Electrici in  4 the amount of$485,240, as recommended by staff. Commissioner Pitcher seconded the motion 5 and voting was unanimous. Commissioners Becker, Cushing, Irvine and Pitcher voted "aye".  7 DISTRIBUTION DIRECTIONAL DRILLINGI BID  Mr. Veigel reported that there are: several underground distribution circuits throughout  9 the system that have direct-buried underground cable and we need toi install a conduit sO that new 10 underground cable can be install new underground cable. The projects range from low voltage 11 systems to installing a conduit to tie our high voltagc fccders togcther. Again, to minimize the 12 inconvenience to residents and to limit the restoration of property, directional drilling has been  13 identified as the best process to use: for this work.  14 15  Bids were requested from five contractors and two bids were: received. Itis  16 recommended that the bid be awarded to low bidder, Hunt Electric, Inc., in the amount of 17 $168,657. The work includes 5 project sites and is identified in thel FY 2018-19 and FY2019-20 18 budgets. Funding will be from the Capital Improvement and Distribution Accounts. 21 Inc. in the amount of $168,657, as presented by staff. Commissioner Pitcher seconded the 22 moliun and voling was unanimous. Commissioners Becker, Cushing, Irvine and Pitcher voted  19 20  Commissioner Irvine motioned to recommend approval ofthe bid from Hunt Electric,  23 "aye". 24 26  25 SMALL CELL TOWER DESIGN STANDARDS  Mr. Johnson reviewed that last year the Council approved thc City's Small Cell Wireless  27 Technology Ordinance which regulates the construction, use, and maintenance of this technology 28 within the City right-of-way. The purpose of this technology provides the end user with faster 29 data and wireless service. The telecommunications industry is nowi moving forward with 30 installation of this technology (which can be deployed on existing or new poles, and under 31 Federal and State law the City is required to allow one or both oft these options). Mr. Johnson 32 noted that we want to support this technology, but not at the expense oft the electrical system's 33 safety, reliability, or our ability to maintain our electrical system safely. With this in mind, the 34 staff recommends approval of the Small Cell Infrastructure Design Standard which has been 35 developed by a group oft the municipalities SO that the requirements would be similar within 36 other cities. This will allow for carriers toi install their equipment on existing street light poles, 37 possibly new: street light poles, ori install new small cell poles to meet their needs.  38 39  Discussion followed regarding the Design Standards and pictures of small cells attached  40 to poles were reviewed. Mr. Hill emphasized that wel have to allow carriers toj put their facilities 41 inj public right-of-way and adopting the Design Standards will make the process more workable 42 for both the City and industry carriers. Mr. Johnson reviewed the general requirements and it 43 was noted that the City will be required to meet a certain time frame to install the necessary 44 equipment. There will be a franchise fee per pole which will allow the City to collect: revenue to  45 offset the costs associated with installing the equipment.  46  Page 6of7    (PCn minutes April 9, 2019)  1 3 5 6 8 9 11 13 14 15 16 17 18 19 20 21 22 24  2 Thefollowing items were included on the Agenda, but not discussed in the meeting:  4 SOLAR INSTALLATIONSI UPDATE  7 RESOURCE UPDATE  10 Thej following items were included in the packet, but not discussed in the meeting:  12 POWER SYSTEMS OPERATIONS REPORTS  a. January 2019 Resource Reports  b.] February 20191 Lost Time Related Injuries/Safety Report  C. February 2019 Public Relations Report d.] February 2019 Outage Reports  23 OTHER BUSINESS  Mr. Johnson reminded the Commission ofthe upcoming APPA conference in Austin on  25 June 8-12, and he urged them to let him know ift they planned to go so that reservations could be 26 made in at timely manner. It was confirmed that Commissioners Summers (and spouse), 27 Commissioner Cushing (and spouse), Commissioner Becker (and spouse) would be attending. 28 Commissioners Irvine and Bell said they would get back int touch with Mr. Johnson;  29 Commissioner Pitcher will not be attending. 31 NEXT POWER COMMISSION  30 32 33 a.m. 34 35 ADJOURN 36 38 39 40  The next meeting oft the Power Commission will be on Tuesday May 21, 2019 at 8:00  The meeting adjourned at 10:02 a.m. on a motion made and seconded by Commissioners  37 Bell and Pitcher, respectively.  John   Page 7of7