1 2 3 4 5 6  MEETING OF THE BOUNTIFUL CITY POWER COMMISSION February 19, 2019- - 8:00 a.m. Those in Attendance  7 Power Commission 8 John Cushing, Chairman 9 Susan Becker 10 Dan Bell 11 David Irvine 12 Jed Pitcher 13 Paul Summers 14 15 Excused 17 18 WELCOME 19 21 23  Power Department Allen Johnson, Director Jay Christensen Alan Farnes Dave Farnes Jess Pearce Luke Veigel Recording Secretary Nancy Lawrence  16 John Marc Knight, Council Representative  Chairman Cushing called the meeting to order at 8:01 a.m. and welcomed those in  20 attendance. Commissioner Becker offered the invocation.  22 MINUTES-JANUARY22.2019  Minutes of the regular meeting ofthe Bountiful City Power Commission held January 22,  24 2019 were presented and unanimously approved on a motion made by Commissioner Becker and 25 seconded by Commissioner Irvine. Commissioners Cushing, Becker, Bell, Irvine, Pitcher, and  26 Summers voted "aye". 28 CHAIRMANUPDAIE  27 29  Chairman Cushing reminded the group ofthel Legislative Reception today at the State  30 Capitol at 4:30 p.m. and encouraged any who could to attend. He also noted that the local 31 legislators are being hosted at a dinner/show at the Centerpointe Legacy Theatre tonight at 6:30  32 p.m. 33 34  Chairman Cushing reviewed that there have been various meetings regarding possible  35 nuclear power projects that BCL&P might consider. This topic has received attention from local 36 leaders, the media, and potential suppliers oft nuclear power. He asked the Commissioners if 37 they had any reseryations/concerms about nuclear power and the possibility of Bountiful 38 participating in a nuclear project. Discussion followed and it was the consensus ofthe group that 39 nuclear power is the best alternative for future power; however, the one thing that might hinder 40 the City ofBountiful from participating in this resource would be not having enough participants 41 to make it financially worthwhile. Ifthat point can be clarified and there is support that is 42 needed to fund this project, then BCL&P should definitely move forward.  43 44 46 47 48  Discussion followed regarding the stance oflocal leadership on nuclear energy and ideas  45 were shared on the need to continue to educate our community on future power resources.  Page 10 of6    (PC minutes February 19, 2019)  1 BUDGET REPORT- - YEAR-TO-DATE 7- MONTH PERIOD ENDING3IJANUARY. 4 Ended 31 January, 2019. He noted that July through December 2018 is final (with estimates as 5 shown) and January 2019 is preliminary. (Most YTD line item amounts will not change from 6 this report when they are final. Missing data includes interest income on investments, interest 7 income on rate stabilization, bank & investment account fee expense, credit card merchant fee 8 expense, and the transfer to rate stabilization fund expense, but these are not expected to  2 2019 3  Mr. Christensen presented the Budget Report for the Fiscal Year-to-Date 7-month Period  9 materially affect the net margin.  10 11  Total revenues YTD were $18,336,201, above its Historically Allocated Budget (HAB)  12 by $55,242. Major items above budget were Electric Metered Sales (EMS), $121,272 or 0.8% 13 above its HAB; and preliminary interest income on investment, $65,045 above its HAB. These 14 accounts were partially offset by the following revenues that were below their HABs: Air 15 Products ($55,005); Street Light income ($47,830); and Contribution in Aid to Construction  16 ($63,462). 17 18  Total Operating Expenses YTD was $16,042,688, below its HABI by $486,891. The  19 major expenses below their HABs were Power Costs, below its HAB by $414,174; and 20 Distribution below by $67,513. These were partially offset by Street Light expense which was 21 above its HAB by $(136,028); and loss on fixed assets, above by $(95,658) which was the result 22 oft the transfer of assets oft the traffic signal system and accumulated depreciation to the City's  23 Engineering Department in December 2018.  24 25 28 29 31 32  Total Capital Expenditures YTD were $854,381, which included materials, labor, and  26 third-party work on the 1381 KV substation, feeder #575, the feeder #673-#271 inter-tie, feeder  27 #37X East, the Culver's] project, and several other projects.  The net margin for the YTD was $1,439,132, above its HAB by $377,319, largely due to Changes in Balance Sheet and Cash Flow Statement YTD were briefly reviewed,  30 lower than budgeted power costs and higher than budgeted EMS revenue.  33 following which Commissioner Pitcher made ai motion to accept the budget report as presented. 34 Commissioner Bell seconded the motion which carried unanimously with Commissioners  35 Becker, Bell, Cushing, Irvine, Pitcher, and Summers voting "aye".  36 38  37 ISSUBSTATONUPDATE  Mr. Farnes reported that the second new 100 MVA transformer at the 138 Substation was  39 energized and loaded on February 6th and has been running since then. He reviewed the history 40 oft the 138 Substation and improvements which have been made over the years by showing slides 41 oft the original substation and the newly updated substation. It was noted that the work which has 42 been done at this substation has been done when the substation was energized, and emphasized  43 that this has required exceptionally careful planning and execution.  44 45  Each ofthe transformers at the 138 substation can carry the entire City; currently three  46 substations are fed via the north transformer and two are fed from the south transformer. Itis  Page 2 of6    (PC, minutes February 19, 2019)  1 anticipated that this configuration will be switched in the future. 3 FEEDER575 REBUILD, HUNTELECTRIC. APPROVAL  2 4  Mr. Veigel reviewed that wel have been working on thel Feeder 575 Rebuild project this  5 year and are at the point where the overhead section along 200 West between 1800 South and 6 2400 South will be replaced. Bids were sent to four Line Construction Contractors to replace 17 7 poles and re-conductor thel line. Three bids were: received and it is the recommendation ofstaff 8 to award the bid to the low bidder, Hunt Electric, in the amount of$147,844. Following al brief 9 discussion, Commissioner Summers made ai motion to recommend approval oft the Hunt Electric 10 bid, as presented, to the City Council. Commissioner Irvine seconded the motion which carried 11 unanimously with Commissioners Becker, Bell, Cushing, Irvine, Pitcher, and Summers voting  12 "aye". 13 14  Comments were made regarding the poor road condition in this area and Mr. Veigel  15 stated that the feeder rebuild project is scheduled to be completed April 12th and the City is 16 planning to re-do the road in May. He also explained that the bid which was. just approved 17 covers equipment and labor. All materials for this project will be furnished by BCL&P and the 18 material expenses are also included in the $450,000 budget for this project. 20 FEEDER 671 AMERICOM CONTRACT EXTENSION APPROVAL  19 21  Mr. Veigel explained that due to new developments in Bountiful there is ai need to bore  22 conduits along 300 South between 100 West and 100 East for the Alpha Graphic project. In 23 March 2018 the City entered in to a contract with American Technology to install conduits 24 throughout the City. This company has completed all the installs from the original bid package 25 and wel have had great success in working with them. The contract was extended in August 2018 26 and it is recommended that it be extended again for the Feeder 671 upgrade project in the amount 27 of$81,843.00. This project isi included in the FY 2018-19 budget. The prices for the extension 28 will be the same as in the original bid. Commissioners Summers motioned to recommend 29 approval oft the Americom Contract Extension, as presented. Commissioner Becker seconded 30 the motion and voting was unanimous. Commissioners Becker, Bell, Cushing, Irvine, Pitcher,  31 and Summers voted "aye".  32 34  33 ASPLUNDH TREE TRIMMING CONTRACT EXTENSION APPROVAL  Mr. Pearce reviewed that there are currently two full time three man tree trimming crews  35 from Asplundh Tree Experts who are clearing tree limbs from power lines. This has resulted in 36 lowering the number and frequency oftree related power outages significantly. The Asplundh 37 contract expires with Bountiful City June 30, 2019; however, the original contract provided the 38 option for multiple 12-month extensions at no more than a 4% increase to labor and equipment. 39 Asplundh was asked and agreed to renew their current contract with the City for a three-year 40 extension with the first and second year at a 4% increase each year. For the third year they have 41 proposed a 2.5% increase on labor only or an effective rate of2%. The current contracted hourly  42 rate is $131.72 for each crew, with proposed rates as follows:  43 44 45 46  2019-2020 $136.87/hour per crew 2020-2021 $142.34/hour per crew 2021-2022 $145.13/hour per crew  $569,379.20 Total for both crews $592,134.40 Total for both crews $603,740.80 Total for both crews  Page3of6    (PC, minutes February 19, 2019)  1  2 Asplundh will supply all the necessary personnel, vehicles, hand tools, ropes, and safety 3 equipment to handle all tree trimming and removal projects. They also provide their own 4 insurance. Iti iss staffrecommendation to enter into a contract extension with Asplundh, as 5 explained. Commissioner Bell motioned to recommend approval ofthe contract extension, as 6 explained. Commissioner Pitcher seconded the motion and voting was unanimous with 7 Commissioners Becker, Bell, Cushing, Irvine, Pitcher, and Summers voting "aye". 10 expense, noting that it assists in BCL&P being able toj provide a reliable service to the 11 community. Ita also contributes to ai more safe work environment for our line crews by reducing  8 9  Supportive comments were made by several commissioners regarding the wisdom ofthis  12 outages and related repairs which occur during stormy weather. 14 DOUBLE REEL WIRETRAILER PURCHASE APPROVAL  13 15  Mr. Pearce reviewed that the trailer which is currently used for hauling overhead and  16 underground cable is not designed to handle the size ofr reels that are now used in the industry. 17 Staff has researched the market for a trailer that would meet our needs and requested aj proposal 18 from Brooks Brothers Trailers for a double turret reel wire trailer. This trailer would not only 19 accommodate the larger reels, but has at turret feature which will allow crews to work in tight 20 locations or on roadways. The trailer also features al built-in hydraulic take-up and payout 21 system which allows al hydraulic pump to spool or unspool the reels and reduces the manual  22 labor previously used to do this work.  23 24  Itis the recommendation ofs staffthat the proposal from Brooks Brothers Trailers fora  25 new double turret reel wire trailer be approved at a total cost of $50,545.00. Although this was 26 not identified in the capital vehicles budget for 2019-20, funds are available in the Capital 27 Vehicle account and in the Contingency Fund. Purchasing the trailer this year will relieve the 28 stress on next year's budget and allow for greater efficiency in this year's projects. 29 Commissioner Pitcher made ai motion to recommend approval of this purchase (as presented) to 30 the City Council. Commissioner Summers seconded the motion and voting was unanimous. 31 Commissioners Becker, Bell, Cushing, Irvine, Pitcher, and Summers voted "aye".  32 33 36 38  Mr. Johnson thanked the Commissioners for their support in keeping equipment  34 upgraded. He pointed out that with the right equipment, the department is able to accomplish  35 their required jobs with a smaller crew, thus reducing labor expense.  37 1100 URD CABLE PURCHASE. APPROVAL  Mr. Pearce reported that the inventory of1100 URD Primary cable is running low, and  39 we need toj purchase some to replenish it. This cable is manufactured by Okonite and is a single 40 source item. Codale Electric in Salt Lake City has submitted a bid for 7,800 feet oft the 1100 41 URD cable at a cost of$7.92/ft. for a total $61,776.00. It is the statfrecommendation to award 42 the bid to Codale. Following a short discussion, which included the fact that Okonite provides a 43 40-year warranty, Commissioner Becker made a motion that the Power Commission 44 recommends to the City Council that this purchase be approved. Commissioner Bell seconded 45 the motion. Voting was unanimous with Commissioners Becker, Bell, Cushing, Irvine, Pitcher,  46 and Summers voting "aye".  Page 4of6    (PCI minutes February. 19, 2019)  2 TRANSFORMERS BID APPROVAL  3  Mr. Pcarcc: reportcd that bids werc requested from two vendors (representing four  4 different transformer manutacturers) for transformers to bej placed into inventory for replacement 5 ofdamagedleaking transformers on the system and for future construction projects throughout 6 the City. Iti is the recommendation ofs staff that the bid be awarded to low bidder, Anixter Power 7 Solutions, in the amount of$126,281.00. This bid includes 24 pole-mount and 29 pad-mount 8 GE/Prolec transformers. Following a brief discussion, Commissioner Pitcher motioned to 9 recommend to the City Council that this bid be approved. Commissioner Summers seconded the 10 motion which carried unanimously. Commissioners Becker, Bell, Cushing, Irvine, Pitcher, and  11 Summers voted "aye".  12 14  13 OSMOSE POLE TESTING: EXTENSION  Mr. Veigel reported that with the contract with Osmose Utility Services we have now  15 inspected, tested, and treated approximately 3,700 distribution poles on our system. The contract 16 extension for which approval is being requested is to do the same work on the remaining 1,300 17 poles on our system. In the discussion which followed Mr. Pearce explained thati ifaj pole is 18 extremely bad, it will be replaced as soon as possible. The pole testing program results in greater 19 safety for our crews, increases reliability of service, and provides data for mapping the system 20 electronically. Iti is the staff recommendation to extend the contract with Osmose for the 21 additional cost of $70,000. Commissioner Summers made ai motion to recommend approval of 22 this quote to the City Council, Commissioner Bell seconded the motion and voting was 23 unanimous. Commissioners Becker, Bell, Cushing, Irvine, Pitcher, and Summers voted "aye".  24 Commissioner Summers was excused at this time. 26 SOLAR INSTALLATIONS UPDATE  25 27  Mr. Christensen reviewed the spreadsheets which he had prepared to convey solar  28 activity for the period. April 2018 through January 2019. With 196 customers, the residential net 29 metering lost revenue to the City for this time period was $143,900. The net metering lost 30 revenue from commercial customers for this same time period was $8,993.00. It was noted that 31 although solar generation is a great resource, it does not come at the right time of day to meet the  32 demand oft the City and thus creates losses.  33 35  34 RESOURCE UPDATE  Mr. Johnson noted that the IPP project is still moving forward and it is anticipated that  36 the future cost ofl IPP power willl be $65.00 per megawatt hour. He said he didn'tthink Bountiful 37 would be taking any ofthis power. Future costs include the cost to take the coal plant down  38 (estimated at $380 million dollars).  39 40 43 45 46  Solar projects are still being considered and it appears the cost of solar could be as lowas  41 $0.03/kwh. Ifthat were the case, it could impact the rate currently being paid tol Bountiful solar  42 customers ($0.0925/kwh).  44 POWERSYSTEMSOPERATIONS REPORTS  The following items were included in the packet, but not discussed in the meeting:  Page 5of6    (PC minutes February. 19, 2019)  1 2 3 4 5 6 7 8 9 11  a. December 2018 Resource Reports  b.J January 2019Lost Time Related Injuries/Safety Report  .January 2019 Public Relations Report d.J January 2019 Outage Reports  10 OTHER BUSINESS  Mr. Johnson reminded the Commission oft the upcoming APPA conference in Austin on  12 June 8-12, 2019 and the Annual UAMPS conference in Jackson, Wyoming on August 18-21, 13 2019 and urged them tol let him know ift they planned to go sO that reservations could be made in  14 at timely manner.  15 17 18 19 ADJOURN 20 21 22 23 24  16 NEXT POWER COMMISSION  The next meeting of the Power Commission will be onl March 26, 2019 at 8:00a.m.  The meeting adjourned at 9:45 a.m.  An Tohn Cushing,  Cr  Page 6 of6