1 2 3 4 5 6  MEETING OF THE August 28, 2018-8:00 a.m. Those in Attendance  BOUNTIFUL CITY POWER COMMISSION  7 Power Commission 8 John Cushing, Chairman 9 Susan Becker 10 Dan Bell 11 David Irvine 13 Jed Pitcher 14 Paul Summers 15 16 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  12 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-June; 26,2018  Minutes of the regular meeting of the Bountiful City Power Commission held June 26,  24 2018 were presented and unanimously approved on ai motion made by Commissioner Becker and 25 seconded by Commissioner Summers. Commissioners Cushing, Becker, Bell, Irvine, Pitcher 28 Chairman Cushing requested that Agenda Item No. 3 (Budget Report) be postponed to lateri in 29 the meeting to allow for other business items to be handled while a full quorum was present. 31 138KV PROJECTUPDATE- CACHE VALLEY FIBER OPTIC SPLICE APPROVAL 33 reconstruction oft the south bay oft the 1381 KV Substation. It is planned that the south bay will be 34 de-energized on September 14th. The second new 1001 MVA transformer is scheduled tol be 35 delivered the end of October. The load oft the entire City will be on the new north bay 36 transformer only for about 3 months. Iti is hoped that the 1381 KV: Substation upgrade will be  26 and Summers, and Councilman Knight voted "aye".  27 30 32  Mr. Farnes reported that everything is getting lined up for the demolition and  37 completed before the end of the year.  38 39  Splicing and terminating the fiber optic line which follows the transmission line running  40 from the 138 KV: Substation to the three way junction at Smith's Market Place has been included 41 in the 138 KV Substation rebuild project and is included ini the fiscal year 2018-19 budget. 42 Cache Valley Electric has provided a quote of $20,206.00 to provide the labor, equipment, and 43 materials to complete the four splices and one termination needed to activate the fiber 44 communication lines. This quote has been reviewed by the staff and is recommended for 45 approval. Commissioner Summers motioned to approve the quote from Cache Valley Electric in 46 the amount of $20,206.00. Commissioner Pitcher seconded the motion and voting was 47 unanimous with Commissioners Becker, Bell, Cushing, Irvine, Pitcher, and Summers and  48 Councilman Knight voting "aye".  Page 1 of5    (PC minutes August 28, 2018)  1 3  2 AMERICOMTECHNOLOGIES BID EXTENSION APPROVAL  Mr. Veigel reported that there are several projects in the City that need tol have conduit  4 installed. In an attempt to minimize the inconvenience to residents and limit the restoration of 5 property, including streets, it was determined that these projects should be completed via boring, 6 as opposed to digging open trenches. Iti is the staff's recommendation that the bid received from 7 Americom (an extension of an existing contract) in the amount of$314,435 be approved. The 8 bid includes one capital project, two distribution lines, and five street light circuits. Following a 9 brief discussion, Commissioner Bell made a motion that the Power Commission recommend 10 approval of this bid extension to the City Council. Commissioner Irvine seconded the motion 11 and voting was unanimous with Commissioners Becker, Bell, Cushing, Irvine, Pitcher, and  12 Summers and Councilman Knight voting "aye". 14 OSMOSE POLE TESTING APPROVAL  13 15  Mr. Veigel reviewed that Osmose Utility Services has previously worked with BCL&P  16 inspecting, reinforcing, and restoring transmission poles. In an effort to be more safe and 17 reliable, we have requested a quote from Osmose to test, inspect, and treat our wood distribution 18 poles. Upon completion oft this project, we will have full condition reports for all our wood 19 poles, as well as GPS coordinates, which will greatly enhance our mapping system. The quote 20 from Osmose Utilities is $160,000 and it is the recommendation ofs stafft to approve this bid. (He 21 noted that this bid does not include any poles that have been installed in the last ten years). 22 Commissioner Summers made ai motion that the Commission recommend to the City Council 23 that this bid from Osmose in the amount of$160,000 be approved. Commissioner Becker 24 seconded the motion. Voting was unanimous with Commissioners Becker, Bell, Cushing, Irvine,  25 Pitcher, and Summers, and Councilman Knight voting "aye". 27 MOUNTAINSTATESTRUCK BED APPROVAL  26 28  Mr. Pearce presented a stafrecommendation to approve a bid from Mountain States  29 Industrial Supply/B/G for a service body (included in the FY 2018-19 budget) for $35,862.00. 30 The cab and chassis will be purchased from a separate supplier, but does not need the lead time 31 required for the service body. This vehicle will be used for substation maintenance. 32 Commissioner Pitcher motioned to recommend approval of the bid from Mountain States 33 Industrial Supply as presented. Commissioner Summers seconded the motion which carried 34 unanimously. Commissioners Becker, Bell, Cushing, Irvine, Pitcher, and Summers, and  35 Councilman Knight voted' "aye".  36 37 39 41  Ini response to a question from the Commission, Mr. Pearce noted that the older truck  38 being replaced will be taken to the Tand' T auction.  40 BUDGET REPORT-) YEAR-TO-DATEI2-1 MONTH PERIOD ENDING. JUNE 30, 2018 42 Period Ended 30 June, 2018. He noted that this report is preliminary until the independent audit 43 isc completed (expected by November). He reported that the year-to-date figures are final 44 through May 2018 (noting that this includes estimates for Electric Metered Sales, Air Products, 45 and UAMPS power costs for. July and August's EMS). He explained the process ofusing 46 estimates for these two months in an attempt to create more accurate comparisons to budget and  Mr. Christensen presented the Budget Report for the Fiscal Year-to-Date 12-month  Page 2 of5    (PC minutes August 28, 2018)  1 noted that they are used only ini the income statement. They are not included in customer 2 accounts receivable and accounts payable on the balance sheet and cash flow statement. 3 Discussion followed regarding how this process is tied to GASB in accounting for the potential  4 income/loss) generated by the Power and Light enterprise fund.  5 6  Fiscal Year to Date Total Revenues were $30,868,360, below its historically allocated  7 budget (HAB) by $(4,150,911). Major items above or (below) their HABs included: EMS 8 (including estimates) $(375,801) due to mild weather; Air Products (including estimates) 9 $208,918; Interest Income on Investments $209,307; and Use of] Retained Earnings $(4,343,256) 10 as the preliminary net margin for the year was sufficient to fund more capital expenditures than  11 planned. 12 13  Total Operating Expenses YTD were $25,041,593, below its HAB by $3,619,113. Major  14 items (above) or below their HABs included: Power Costs $1,124,224 due to careful purchasing 15 and scheduling of power resources, selective use ofour three turbines, and mild winter weather; 16 Transmission $901,257 as work was postponed on budgeted projects; Streetlight $72,308; 17 Substation $89,329; Transfer to the Rate Stabilization Bond fund $(55,475) due tol higher than 18 anticipated interest earnings; Contingency $668,426 not used; and total labor and benefits  19 $169,228. 20 21  Total Capital Expenditures YTD were $5,616,256, compared to $1,283,469 for the same  22 period last year. The most significant items included in this figure were the 138 KV substation 23 rebuild project at $3,720,263 (work in progress); completion of the transmission phase 7 project 24 at $598,569; and purchase of the Fisher property north oft the office/warehouse at $519,065 (and  '25 approved by the City Council on. June 12, 2018 as a budget amendment).  26 27  The net margin YTD (June 2018 is preliminary) was $210,512, above its HAB by  28 $613,012. This was due tol lower power costs, many operating expenses that were below budget, 29 higher interest incomes, higher Air Products income, and lower labor and benefits expense, 30 mostly offset by lower use ofretained earnings and lower EMS. The preliminary net margin for 31 the month was $(2,292,165) as there was no use ofretained earnings to fund capital  32 expenditures. 33 34 35 36  The report also included changes in Balance Sheet and Cash Flow Statements YTD. Following discussion, Commissioner Pitcher made ai motion to approve the budget report  37 for the YTD period ended June 30, 2018. Commissioner Bell seconded the motion and voting 38 was unanimous with Commissioners Becker, Bell, Cushing, Irvine, Pitcher, and Summers, and 41 BUDGET REPORT- - YEAR-TO-DATEI-MONTH PERIOD ENDINGJULY312019 43 Ended 31 July, 2018. He noted that this report is preliminary due to the use ofestimates for  39 Councilman Knight voting "aye".  40 42 45 46  Mr. Christensen presented the Budget Report for the Fiscal Year-to-Date 1-month Period  44 Electric Metered Sales, Air Products Income, and UAMPS power costs.  Total Revenues YTD were $2,456,880, below its HAB by $(24,915). Major items  Page3of5    (PC, minutes. August 28, 2018)  above/below) their HAB included: EMS above its HAB by $63,064 due tol hot weather; street 2 light income below by $(33,800) due to billings not starting until August instead ofJ July as  3 anticipated; and Air Products below by $(21,933).  4 5 8 9 11 12 14 15  Total Operating Expenses YTD were $2,211,221, below its HAB by $50,879. Thet two  6 major accounts: related to this were Power Costs below by $38,164; and the transfer to the 7 General Fund was above by $(24,033) with higher EMS than anticipated.  Total Capital Expenditures YTD were $11,908, compared to $1,813 for the same period The Net Margin YTD was $233,751, above its HAB by $14,104, due largely to higher Following discussion, Commissioner Bell motioned to accept the Budget Report for the  10 last year, due mostly to labor for various projects.  13 EMS: revenue, lower power costs, and lower labor and benefits expense.  16 Month of. July, 2018, as presented. Commissioner Pitcher seconded the motion and voting was 17 unanimous. Commissioners Becker, Bell, Cushing, Irvine, Pitcher, and Summers, and  18 Councilman Knight voted "aye". 20 SOLAR INSTALLATIONS UPDATE  19 21  Mr. Christensen presented a comprehensive report on Solar Customer Production and  22 Usage Report (residential net metering customers only): for billings April, May, and June 2018. 23 195 customers were identified numerically and the data reflected: total KWH production; KWH 24 sold to BCL&P (KWH and %); KWH sold to Customers; Total KWH Consumption; and Excess 25 Generation (KWH and $s). This report reflected that thc total revenue lost to the City as ai result 26 ofsolar customers and net metering was $61,607.87, or 59.0% oft their total production being  27 sold back to the City.  28 29  Discussion followed and the Commission expressed appreciation for this report, noting  30 that not only does it demonstrate the financial impact ofs solar net metering, but any errors in the 31 system are: more easily recognized. It was noted that about 1 to 2 solar customers have been  32 added each month.  33 34 35 37  Chairman Cushing was excused at this time (9:15a.m.)  36 RESOURCE REPORT  Allen Johnson presented an update on all resources which are currently being used,  38 including permanent and peaking power. He emphasized that weather, gas prices, and other 39 resource prices play importantly in how we project our needs, scheduled on years/hours in 40 advance. He emphasized how hedging assists in stabilizing power costs an advantage granted 41 to enterprise funds. The. 5 MW we currently get from San Juan will most likely "die ai natural 42 death" when new coal contracts are not executed. California's carbon tax which will be totally 43 implemented by 2026 will impact the IPP power. Bountiful will not bej participating in the solar 44 project near Beaver, Utah due to the purchase ofthat resource by one: single entity. The 45 proposed nuclear project in Idaho will remain as a potential resource; Mr. Johnson reviewed the 46 timeline/resources for participating in that project. No action was taken on this Agenda item.  Page 4 of5    (PC, minutes. August 28, 2018)  2 POWER SYSTEMSO OPERATONS REPORTS  3 4 5 6 7 8 9 10 11 12 14  The following items were included in the packet, but not discussed in the meeting:  a. Mayand. June 2018 Resource Reports  b. June and July 2018 Lost Time Related Injuries/Safety Report  C.: June and July 2018 Public Relations Report d., June and July 2018 Outage Reports  13 OTHER BUSINESS  UAMPS will sponsor a Municipal Toolkit Workshop on September 11, 2018 at the Salt  15 Lake City Center Marriott, starting with a lunch at 12:30 p.m. Mr. Johnson said BCL&P will 16 register any commissioners who would like to attend. Commissioners Bell and Summers  17 expressed interest.  18 20 21 22 ADJOURN 23 26 27 28 29 30  19 NEXT POWER COMMISSION  The next meeting of the Power Commission will be on September 25, 2018 at 8:00 a.m. The meeting adjourned at 9:50 a.m. on a motion made by Commissioner Summers and  24 seconded by Commissioner Bell. Voting was unanimous with Commissioners Becker, Bell,  25 Irvine, Pitcher, and Summers, and Councilman Knight voting "aye".  John  A CF  Page 5of5