1 2 3 4 5 6  MEETING OF THE BOUNTIFUL CITY POWER COMMISSION November 13, 2018-8 8:00 a.m. Those in Attendance  7 Power Commission 8 John Cushing, Chairman 9 Susan Becker 10 David Irvine 12 Paul Summers 13 14 Bountiful City 15 Clint Drake, City Attorney 16 17 Excused 18 Dan Bell 19 Jed Pitcher 20 21 WELCOME 22 24 26  Power Department Allen Johnson, Director Jay Christensen Dave Farnes Jess Pearce Luke Veigel  11 John Marc Knight, Council Representative  Recording Secretary Nancy Lawrence  Chairman Cushing called the meeting to order at 8:00 a.m. and welcomed those in  23 attendance. Commissioner Summers offered the invocation.  25 MINUTES- - October 23, 2018  Minutes of the regular meeting of the Bountiful City Power Commission held October  27 23,2018 were presented and unanimously approved on a motion made by Commissioner 28 Summers and seconded by Commissioner Irvine. Commissioners Cushing, Becker, Irvine, and 31 BUDGET REPORT - YEAR-TO-DATE 4- MONTH PERIOD ENDING OCTOBER31, 34 Ended 31 October, 2018. He noted that July, August and September numbers are: final, but 35 October is] preliminary. He also briefly reviewed the status oft the 2010 Bond with a balance on 36 July 1,2018 of$10,745,000.00. A federal interest expense subsidy of$118,303.10 was received 37 on October 2, 2018; this subsidy corresponds to the interest payment made on 1 November 2018. 38 Subsequent tol November 1, 2018, a $690,000.00 annual principal payment was made, and a  29 Summers, and Councilman Knight voted "aye".  30 32 2018 33  Mr. Christensen presented the Budget Report for the Fiscal Year-to-Date 4-month Period  39 $281,473.00 semi-annual interest payment was made.  40 41  Total Revenues YTD were $11,598,420, above its historically allocated budget (HAB) by  42 $211,262. Major items above or (below) their HAB included: EMS, above its HAB by 43 $240,600 due to hot summer weather; street light income, below its HAB by $(47,971) due to 44 billing not starting until August instead of. July as anticipated; Contribution in Aidt to 45 Construction, above its HAB by $47,238; and. Air Products, below its HAB by $(28,577). 48 items above or (below) their HAB included: power costs, above its HABI by $(28,388) with the  46 47  Total Operating Expenses YTD were $9,564,742, below its HAB by $72,607. Major  Page 1of5    (PC, minutes November 13, 2018)  higher EMS; distribution, below its HABI by $36,002 but included work on numerous projects; 2 street light, above its HAB by $(41,380) with work on five budgeted street light projects plus 3 other projects; uniforms expense, above its HAB by $(13,015) as safety clothing has been  4 replaced with higher FR ratings and provided for more employees.  5 6 9 10 11 EMS revenue. 12 13 16 17 20 22  Total Capital Expenditures YTD were $381,028, compared to $506,145 for the same  7 period last year, due mostly to labor, materials and third-party work on feeder #575, feeder #673- 8 #271 inter-tie, feeder #37X East, the Culver's project, and the 138 KV substation project.  The Net Margin YTD was $1,652,650, above its HAB by $153,582, due largely tol higher Changes in Balance Sheet and Cash Flow Statement YTD was $26,209,847 at month end,  14 up from $900,853 from $25,308,994 at 30. June 2018. Mr. Christensen called attention to eight  15 (8) major year-end adjustments thati impact these statements.  Following discussion, Commissioner Becker made a motion to accept the budget report  18 as presented. Commissioner Summers seconded the motion which carried unanimously with 19 Commissioners Becker, Cushing, Irvine, and Summers, and Councilman Knight voting "aye".  21 CALENDAR UPDATE  Mr. Johnson reviewed the proposed Power Commission meeting schedule with the group,  23 noting that it is based on the typical fourth Tuesday for normal meetings. He called attention to 24 variations from that schedule (printed in bold) to accommodate joint meetings with the City 25 Council and National and local conterences/mectings with other professional entities. The  26 proposed schedule is:  27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 44 46  January 22, 2019 February 19,2019 March 26, 2019 April 16, 2019 May 21,2019 June 25, 2019 July 2019 August 27,2019 September 24, 2019 October 22, 2019 November 26, 2019  Tuesday - 8:00 a.m. Tuesday - 8:00 a.m. Tuesday - 8:00 a.m. Tuesday - 8:00 a.m. Tuesday - 8:00 a.m. No PC: Meeting Scheduled Tuesday - 8:00 a.m. Tuesday - 8:00 a.m. Tuesday - 8:00 a.m. Tuesday - 8:00 a.m.  Tuesday - 8:00 a.m. Joint PC&CC-2020: Budget  APPA National Conference June 8-12, 2019 Austin, TX UAMPS Annual Meeting Aug 18-21, 2019 Jackson, WY  Mr. Johnson also called attention to:  (1)t the Annual BCL&P Christmas party which will be held December 14, 2018 from 6:00 (2)t the Annual UAMPS Meeting at the downtown Marriott--Dinner at 6 p.m. on (3) The Annual IPP meeting at the Grand America on December 4 from 11 a.m. to 2j p.m.  43 to 8:00 p.m. at the Grand Ball Room (please RSVP to Pat); 45 December 18 and meeting on December 19 from 9a.m. to 1 p.m.; and  Page 2 of5    (PC, minutes. November. 13, 2018)  2 POLE BID APPROVAL  3 6 7 8 9 10  Mr. Pearce reviewed that the inventory of power poles is running low and a quote was  4 requested from McFarland Cascade (a single source supplier due to specifications for butt treated  5 poles). The bid included the following quantities:  30 (ea.)35'class 3 poles 50 (ea.) 45' class 3 poles  $14,310 (used ini residential areas) $36.750 (high voltage poles)  Total  $51,060  He explained that the preference for butt treated poles is that they are safer for our  11 linemen to climb. This bid has been reviewed by the staff and is recommended for approval. 12 Following discussion, Commissioner Irvine motioned to recommend approval ofthis bid tot the 13 City Council. Councilman Knight seconded the motion which carried unanimously. 14 Commissioners Becker, Cushing, Irvine and Summers and Councilman Knight voted "aye".  15 17  16 BORING BID UPDATE  Mr. Pearce reported that all oft the boring projects which were scheduled for the year have  18 been completed except for site restoration work. Americom is doing the restoration work and 19 should have it completed by Thanksgiving. Future boring projects will be bid in groups in an 20 effort to get better responses. He also reported that one oft the sub-contractors used by 21 Americom has had a couple ofa accidents (property damage only). Subsequent to completion of  22 this contract, Americom will no longer be using this sub-contractor.  23 24 27 29 31  Commissioner Irvine said he had made a site visit to al boring project and noted that it  '25 was very interesting "remarkable". He recommended that others also take the opportunity to  26 watch this process.  28 ---Mr. Drake arrived at this time. 30 BSUBSTATONUPDATE  Mr. Veigel gave an update oft the 138 Substation upgrade, noting that all oft the concrete  32 work for the #2 transformer bay has been completed and steel erection should begin on Monday, 33 November 12th. The second new 100MVA transformer has been confirmed for delivery on 34 Monday, November 19th. Virginia Transformer willl have a crew onsite on November 26tht to 35 install the transformer bushings and arresters, attach the radiators and fans, finish filling the 36 transformer with oil, and do some testing. Iti is anticipated that we will energize the new 37 transformer around December 10th-not putting the full load on it, but testing it.  38 39  Commissioner Irvine noted that the 138 Substation project has been an' "ongoing project"  40 for many years and he asked ifthere was any prediction as to when this project will be entirely 41 completed. Mr. Johnson briefly reviewed the work that has been inj progress since 1966 and 42 noted that the project has been phenomenal because the work has been done while the substation  43 has been "live".  44 46  45 OSMOSE POLE TESTINGI UPDATE  Mr. Veigel reported that 1,029 poles have been tested at this point. Ofthose poles, 7  Page 3of5    (PC minutes November 13, 2018)  1 have been priority rejects - needing immediate replacement- - and 40 others were classified as 2 "rejects", meaning that the process ofanchoring and balancing will not be considered, but they 3 will be replaced as soon as can be scheduled. Mr. Johnson noted that poles which have been 4 identified as rejects are visually inspected at the top oft the pole as well. Ini response to questions 5 from the Commission, Mr. Pearce said that a pole can be changed the same day, ifnecessary. 6 The use oft the small digger machine has been an incredible asset to setting poles. 7 Commissioner Irvine asked tol be notified when this machine is being used sO that he can watch 8 the process. Following ai review ofh how a pole is set in al back yard, Chairman Cushing requested 9 that Mr. Pearce let his crews "know how much we appreciate all that they do".  10 12  11 SOLARI INSTALLATIONS UPDATE  Mr. Christensen reviewed spreadsheets with data for the 7-month period April- October  13 2018 for solar customers, separated into net metering Residential and feed-in tariff customers. 14 The total amount of revenue lost for this time period for the 195 net metering customers was 15 $124,043.00. Feed-in tariff customers are also subsidized by the City (approximately halfas 16 much as net metering customers). Ini response to questions from the Commission, Mr. Johnson 17 explained the concept of electrical "demand" and the need to build ai master resource schedule 18 around demand. He pointed out that when we sell power back to the customer, we are paying a 19 premium amount compared to wholesale rates available. He said that we will have nine months 20 ofreal data by the time we are considering next year's budget, and will bei in a better position to 21 justify any action that is taken. He also noted that the practice of "net metering" was 22 grandfathered in for existing customers, but that rates can be modified to accommodate fairness 23 in billing. He emphasized that we don't want to discourage solar, but we need to be fair tol both  24 our solar and non-solar customers. 26 RESOURCE UPDATE  25 27 30 31  Mr. Johnson reported that we are still looking at a solar project, via UMPA, which is  28 projected to come in at $.05/kwh and is scheduled to be on line summer of2020. This resource 29 would bring green power to our portfolio and would also assist in establishing solar pricing. 32 California. The power sales contracts are for a 50-year period. California will be required tol be 33 100 percent non-carbon by 2045 and sO all contracts: must be paid off by then. Rates will 34 increase immediately under the new contracts in order to facilitate this pay-off.  The IPP project has all the approvals it needs to move forward andi is a complete "go" for  35 36 39 41 42 43 44 45 46  Mr. Johnson summarized changes in pricing, bonding requirements, capital costs of  37 dismantling the existing plant, newi plant construction costs, and participant share ownership, and  38 abriefdiscussion followed.  40 POWER SYSTEMS OPERATIONS REPORTS  The following items were included in the packet, but not discussed ini the meeting:  a. September 2018 Resource Reports  b. October 2018 Lost Time Related Injuries/Safety Report  Page 4 of5    (PC, minutes. November 13, 2018)  1 2 3 4 5 6 OTHER BUSINESS 7 8 Ballroom. 9 11 12 13 ADJOURN 14 15 16 17 18  C. October 2018 Public Relations Report d. October 2018 Outage Reports  The BCL&P Christmas party will be held Friday, December 14, 6:00PM at the Grand  10 NEXT POWER COMMISSION  The next meeting of the Power Commission will be on January 22, 2019 at 8:00 a.m.  The meeting adjourned at 9:40 a.m. by consensus.  Cufie CHAIRMAN  John R  Page 50 of5