1 2 3 4 5 6  MEETING OF THE BOUNTIFUL CITY POWER COMMISSION September 25, 2018-8:00a.m. Those in Attendance  7 Power Commission 8 John Cushing, Chairman 9 Susan Becker 10 Dan Bell 12 Jed Pitcher 13 Paul Summers 14 15 Excused 16 David Irvine 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  11 John Marc Knight, Council Representative  Chairman Cushing called the meeting to order at 8:00 a.m. and welcomed those in  20 attendance. Susan Becker offered the invocation.  22 MINUTES = August 28,2018  Minutes of the regular meeting oft the Bountiful City Power Commission held August 28,  24 2018 were presented and unanimously approved on ai motion made by Councilman Knight and 25 seconded by Commissioner Becker. Commissioners Cushing, Becker, Bell, Pitcher and 28 BUDGET REPORT - YEAR-TO-DATE: 2- MONTH PERIOD ENDING AUGUST31, 31 Ended 31 August, 2018. He noted that. July numbers are final, but August is preliminary. He 32 clarified that the following line items are not included ini the Historically Allocated Budget 33 (HAB): labor and benefits expenses; all 2010 Bond items, all transfer revenues, power purchased 34 from UAMPS, and all capital expenditures. Expenditures for those items can be made any time 35 and there is no HAB variance until the expenditures actually exceed the budget.  26 Summers, and Councilman Knight voted "aye".  27 29 2018 30  Mr. Christensen presented the Budget Report for the Fiscal Year-to-Date 2-month Period  36 37  Total Revenues YTD were $5,762,096, above its HAB by $155,090. Major items above  38 or (below) their HABs included: electric metered sales (EMS), above by $286,365 due to hot 39 weather; street light income, below by $(47,872) due to billing not starting until August instead 40 ofJuly as anticipated; Air Products, below by $(28,064); and preliminary interest income on 41 investments, below by $(37,802) due to FYE adjustments in. July and no income reported for  42 August. 43 44  Total Operating Expenses YTD were $4,959,909, below its HAB by $100,186. Major  45 items (above) or below their HABs inçluded: power costs, below by $23,348; street lighting, 46 below by $17,398 due to timing of several projects; and computer, below by $28,138 because it 47 did not yet include annual charges from the IT department. Items above their HABs were 48 distribution, above by $(18,405); uniforms, above by $(12,370) with the purchase of higher rated  Page 1of6    (PC, minutes September 25, 2018)  flame resistant clothing; and the transfer to the general fund, above by $(10,069) due to the  2 higher EMS. 3 4 7 8  Total Capital Expenditures YTD were $74,753, compared to $5,729 for the same period  5 last year, due mostly to labor for various projects and Construction in Progress (CIP) 15 for  6 excavating on the distribution system feeder #37x East project.  Total Labor and Benefits expense YTD was $668,095, below the target (as of August  9 25!) by that date by $19,996. In response to a question from the Commission, Mr. Christensen 10 explained that the reason Labor and Benefits was. lower is that the overtime figure calculated in 11 the budget has not been used as much as projected; and merit increases that will apply to several  12 employees have not yet occurred. 15 EMS revenue, and lower power costs.  13 14 16 17  The Net Margin YTD was $727,434, above its HAB by $215,220, due largely tol higher Changes in Balance Sheet and Cash Flow Statement YTD were briefly reviewed and  18 resulted in a brief discussion regarding the anticipated shut down oft the San Juan power plant 19 and a 5-year amortization ($1,212,235 annually) oft the $61 million recorded asset. The current  20 independent audit will have a note explaining this transaction.  21 22  Following discussion Commissioner Pitcher made ai motion to accept the budget report as  23 presented. Commissioner Bell seconded the motion which carried by ai majority with 24 Commissioners Becker, Bell, Cushing, and Pitcher and Councilman Knight voting "aye"; 25 Commissioner Summers had stepped out ofthe meeting for a moment and did not vote.  26 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46  27 VEHICLE PURCHASE. APPROVAL  a. Explorer Vehicle Purchase. Mr. Pearce reviewed that this year's budget includes $240,000 to be used for the purchase ofvehicles. Iti is proposed that five new vehicles be purchased and bids were: requested from Larry H. Miller Ford Lincoln (State bid) and Performance Ford Lincoln, a local dealer. Iti is proposed that ai new vehicle (Ford Explorer XLT 4X4) be purchased to be used by Mr. Johnson. His vehicle will bej passed down in the fleet and a 1999 Jeep Cherokee will be sent to auction. It is the recommendation of staff to accept the low bid from Larry H. Miller Ford Lincoln at ai total price of $35,789 (a radio communication system and installation of strobe warning lights from a separate supplier will be purchased at a Discussion followed regarding the fact that the local dealer did not match the State bid and Mr. Pearce stated that the local dealership indicated they could not bid a lower figure. Commissioner Summers made a motion to recommend to the City Council that the low bid from Larry H. Miller Ford Lincoln be approved, as presented. Councilman Knight seconded the motion and voting was unanimous with Commissioners Becker, Bell, Cushing, Pitcher, and Summers, and Councilman  later date).  Knight voting "aye".  Page 2 of6    (PC, minutes September 25, 2018)  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 37  b. Plant Vehicle Purchase. Mr. Pearce reported that bids were requested from Larry H. Miller Ford Lincoln and Performance Ford Lincoln for a new 2019 Ford F-150 Super Crew Cab pickup truck used for the power plant and hydro generation facilities maintenance. This vehicle will replace unit #5025, al 1996 Ford F-250. Bids were received from both dealers and it is the staffi recommendation to accept the low bid from Performance Ford Lincoln in the amount of$30,961.00. Ar radio communication system will be installed from a separate supplier at a later date. Everything included should stay within this vehicle's allocated budget. Commissioner Bell motioned toi recommend approval oft the Performance Ford Lincoln bid, as presented. Commissioner Pitcher seconded the motion and voting was unanimous with Commissioners Becker, Bell, Cushing, Pitcher, and Summers Two (2) Metering Vehicles Purchase. Mr. Pearce reviewed that this year's budget includes the purchase of two Ford F-150 SuperCab pickup trucks for the metering department. Bids were requested and it is the recommendation of staff to accept the low bid from Performance Ford Lincoln (local dealer) in the amount of $65,792.00 (for two trucks). Both oft these vehicles will be equipped with strobe warning lights, radio communication and roll-out work beds. These items will be installed by separate suppliers at a later date. Councilman Knight motioned to recommend approval oft the purchase oftwo metering vehicles, as presented. Commissioner Becker seconded the motion and voting was unanimous. Commissioners Becker, Bell, Cushing, Pitcher and Summers, and Councilman Knight voted "aye". d. Substation Cab and Chassis Purchase. Mr. Pearce reported that the 2018-19 budget includes the purchase of a new 2019 Ford F-350 XL Super Cab 4x4 diesel cab and chassis to be used at the substation and for the hydros. This vehicle will replace Unit #5007, a 2004 Ford F-350 Extended Cab 4x4 diesel pickup truck. The service body for this vehicle was approved in last month's meeting. Bids were requested and iti is the recommendation of staff to award the bid to low bidder, Performance Ford Lincoln, in the amount of $40,805.00. Commissioner Becker motioned to support the recommendation of staff. Commissioner Summers seconded the motion which carried unanimously. Commissioners Becker, Bell, Cushing, Pitcher, and Summers  and Councilman Knight voting "aye".  and Councilman Knight voted "aye".  36 1100 URD CABLE BID APPROVAL  Mr. Pearce reported that the inventory of11001 URD primary cable is running low and  38 needs to be replenished for the purpose ofcompleting several feeder upgrade projects on the 39 system this fall and winter. This cable is a 600 amp. jacketed cable with one third neutral, 40 manufactured by Okonite and is a single source item. Codale Electric Supply is the single source 41 for this cable in the state ofUtah. Iti is the recommendation of staff to approve the quote from 42 Codale ($7.92/ft.) for a total cost of $92,664.00 for 11,700 feet of cable. This item is in the 43 budget. Councilman Knight made ai motion to recommend approval oft the purchase ofthis 44 cable, as presented, to the City Council. Commissioner Pitcher seconded the motion which 45 carried unanimously. Commissioners Becker, Bell, Cushing, Pitcher and Summers, and  46 Councilman Knight voted "aye".  Page 3of6    (PC minutes September. 25, 2018)  1 3  2 138KV: SUBSTATIONI UPDATE  Alan Farnes reported that the south bay of the 138 KV substation was de-energized on  4 September 13th and Cache Valley Electric started demolition the next day. He said that almost 5 everything from that bay is gone, and delivery oft the second new 100MVA is expected 6 November 5 or6 6+. Itis anticipated that this transformer will be loaded the week after 7 Thanksgiving and the 138 KV substation project should be completed by the end oft the year with 8 both new transformers up and running. The load oft the entire City will be on the new: north bay  9 transformer for the next three (3) months. 11 ECIENGINEERING. APPROVAL  10 12  Mr. Farnes reviewed that Electrical Consultants, Inc. (ECI) was. hired in May 2017t to  13 provide the engineering services to assist with the rebuild oft the 138 KV substation. The scope 14 oft the project grew when ai new; problem was identified with the larger oft the two transformers in 15 the substation. The change in scope, the additional time and efforts toi interface with PacifiCorp, 16 and the short time table for the substation design and for the preparation of specifications for the 17 timely purchase of the major equipment has had an impact on the cost oft the engineering 18 services. ECI has estimated it will cost an additional $50,000 to provide construction support for 19 Phase 2, close out oft the entire project, and deliver the as-built drawings for the project. The not- 20 to-exceed cost is now $610,000. This puts the total cost for the engineering services for the 138  21 KV substation rebuild at about 11.3 percent oft the total project cost.  22 23  Staff and the City Manager have reviewed the costs associated with the change ofs scope  24 and recommend approval ofai not-to-exceed $50,000 costs, for a total for engineering services of 25 $610,000. Councilman Summers motioned to support this recommendation. Commissioner 26 Pitcher seconded the motion and voting was unanimous. Commissioners Becker, Bell, Cushing,  27 Pitcher and Summers, and Councilman Knight voted "aye".  28 29  Mr. Farnes reported that due to recent work done at the 138 KV substation, there has  30 been a situation which is impacting Air Products. He explained that a tap setting was changed 31 when the new transformer was put in and due to adjustments which were made by Air Products 32 on their transformer, their voltage isi incorrect and ai new transformer is needed. Ifa new 33 transformer can't be located, Air Products may run out ofproduct. BCL&P is working with 34 Virginia Transformer in Pocatello and Cache Valley Electric in an effort to help resolve this 35 problem. Anew 10 MVA transformer would cost 300,000-400,000 and delivery is 6to 7  36 months out. 37 39 42 44  38 BORING BID UPDATE  Mr. Veigel reported that the project to bore under Barton Creek has been completed, the  40 3-inch and 4-inch conduits at the edge ofCarrington Apartments is waiting for approval and the 41 street light project, as well as the project at 200 West 1800 South is moving along.  43 FITCH RATING REVIEW  Following a recent review by Fitch Ratings - San Francisco, Allen Johnson reported that  45 the City has maintained their AA- rating on approximately $10.7 million of electric revenue 46 bonds, Series 2010. One oft the categories that was reviewed was how much of our power  Page 4 of6    (PC minutes September. 25, 2018)  1 portfolio was renewable. The rating next year will be done by Standard and Poor's. The 2 Commission emphasized that this positive news should be shared with our customers.  3 5  4 SOLARINSTALLATIONSI UPDATE  Mr. Christensen reviewed in detail a report which he had prepared containing  6 "Residential Net Metering Customers Only". The data included (for each solar customer) KWH 7 produced, KWH sold to BCLP, and KWH sold to customer, with a four-month comparison 8 (April, May, June and July billings), plus a' Total ofeach category. He walked the group through 9 the data for one customer, and then highlighted several other customers whose generation was 10 unique. The report (which clearly demonstrates accuracy of data) revealed that the total dollars 11 lost to BCLP via the 195 net metering customers for the four-month period was $79,159.56. 12 This loss results from the fact that when the customer is generating solar energy during the day 13 (and BCLP has al low demand), those excess KWH are purchased by the City at a higher rate 14 than other resources used during that time. The total excess generation for the four-month period  15 averaged 54.8%.  16 17  Mr. Christensen pointed out that this data clearly demonstrates the financial impact on  18 BCLP from Net Metering customers. The Commission and Councilman Knight suggested that 19 rates should be changed to remedy the fact that the City is subsidizing net metering customers. 20 Mr. Johnson and Mr. Christensen suggested that additional information should be gathered 21 (including data for Feed-in Tariff customers) prior to making recommendations for rate 22 adjustments. He further noted that rates should reflect fair market value.  23 25 26 27 28 29 30 31 32 33 34 35 36 38 39 40 41 42 43 44 45 146  24 RESOURCE UPDATE  a. IPP Project Update. Mr. Johnson reviewed that California, in Senate Bill 100, has mandated that all power be renewable by 2045; and further, that natural gas will no longer be acceptable as ai renewable resource. Since IPP is a gas project, they will no longer be using this resource. Itis anticipated that they will need tol have it paid for by 2045 and converted to hydrogen. IPA will be on a 20-year financing plan in order b. Carbon Free Update. The nuclear project in Idaho is still looking for more participants, and as IPP gas prices go up, this will result in the nuclear pricing being more: favorable. A waste heat project on the Kern River Pipeline is being considered  toj pay this off by 2045.  and this could serve as ai renewable resource.  37 POWER SYSTEMS OPERATONS REPORTS  The following items were: included in the packet, but not discussed in the meeting:  a. July 2018 Resource Reports  b. August 2018 Lost Time Related Injuries/Safety Report  . August 2018 Public Relations Report d. August 2018 Outage Reports  Page 50 of6    (PC minutes September 25, 2018)  1 3 4 6 7 9 10 11 ADJOURN 12 15 16 17 18  2 OTHER BUSINESS  None  5 Councilman Knight was excused at this time. 8 NEXT POWER COMMISSION  The next meeting of the Power Commission will be on October 23, 2018 at 8:00 a.m. The meeting adjourned at 9:52 a.m. on ai motion made by Commissioner Summers and  13 seconded by Commissioner Pitcher. Voting was unanimous with Commissioners Becker, Bell,  14 Cushing, Pitcher, and Summers voting "aye".  gB  Cl  John Cushing, CHAIRMAN  Page 6 of6