1 2 3 4 5 6  MEETING OF THE June 26, 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 15 Excused 16 Paul Summers, Commissioner 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. Alan Farnes offered the invocation.  22 MINUTES- May 22,2018  Minutes of the regular meeting oft the Bountiful City Power Commission held May 22,  24 2018 were presented and unanimously approved on ai motion made by Commissioner Pitcher and 25 seconded by Commissioner Becker. Commissioners Cushing, Becker, Bell, Irvine, and Pitcher 28 BUDGET REPORT - YEAR-TO-DATE - 11- MONTH PERIOD ENDING MAY31, 2018 30 Period Ended 31 May, 2018. He reported that the year-to-date figures are final through April 31 2018; May 2018 is preliminary because it is missing data fori interest income on investments, 32 interest income oni rate stabilization, bank and investment account fee expense, credit card 33 merchant fee expense, and transfer to rate stabilization fund expense. These figures are not  26 and Councilman Knight voted "aye".  27 29  Mr. Christensen presented the Budget Report for the Fiscal Year-to-Date 11-month  34 expected to materially affect the YTD net margin.  35 36  Total revenues YTD were $28,676,745, above its historically allocated budget (HAB) by  37 $185,277. Major items above or (below) their HABs were: Electric Metered Sales was 38 $(390,239) below its HAB due to mild winter weather; Air Products income was $231,734 or 39 11.5% above its HAB; preliminary interest income on investments was above its HAB by 40 $155,829; and gain on sale offixed assets was above its HAB by $42,419.  41 42  Total Operating Expenses YTD were $22,576,647, below its HAB by $2,267,416. Major  43 items (above) or below their HABS included: power costs were $1,004,613 below its HAB due 44 to careful purchasing'scheduling of power resources and mild winter weather; transmission was 45 $363,560 below its HAB because work has been postponed on budgeted projects; distribution 46 was $190,654 below: its HAB due tol budgeted work yet to be done; substation was temporarily 47 above its HAB by $(27,749) with the budgeted purchase of four 46KV breakers for the Southeast 48 and Central substation; and the preliminary transfer to the rate stabilization bond fund was  Page 1 Lof5    (PC minutes. June 26, 2018)  I $(34,349) above its HAB with higher than budgeted interest earnings.  2 3 6 7 10 11 13 completed. 14 15  Total Capital Expenditures YTD were $3,644,980, with major items including the  4 $519,065 unbudgeted (but approved) purchase oft the Fisher property; the $598,569 transmission 5 system Phase 7 project; and the $2,247,627 work in progress on the 138 KV substation upgrade. 8 due largely tol lower power costs, higher Air Products income, lower labor and benefits expense, 9 and lower distribution cxpense. Thej preliminary nct margin for the month was $42,128. 12 YTD period, noting that cash will be going down as more budgeted capital projects are  The net margin year-to-date was $2,455,118, above its HAB by $2,223,580. This was  Mr. Christensen reviewed changes in the Balance Sheet and Cash Flow statements for the  Commissioner Bell asked for additional information regarding the FY20181 Budget  16 Amendment which had been approved by the City Council. Mr. Christensen reviewed that 17 Operating and Capital expenditures cannot exceed budget, and the purchase ofthe Fisher 18 property (originally: not included ini the budget) brought expenditures close to the budgeted 19 amount for 2018. In an "abundance of caution", the budget was amended to facilitate approval 20 oft the land purchase, by increasing the budgets for both land and retained earnings by $519,065  21 each. 22 23  Commissioner Pitcher made ai motion to approve the Year tol Date Budget Report for the  24 11-month Period Ending May 31,2018. Commissioner Bell seconded the motion which carried 25 unanimously. Commissioners Cushing, Becker, Bell, Irvine, and Pitcher and Councilman Knight  26 voted "aye". 27 29  28 138 KV PROJECT UPDATE  Alan Farnes narrated a slide presentation which depicted the work which is in progress at  30 the 138 KV substation. Hei identified the 62 MW and 75 MW transformers which were 31 scheduled for replacement and the new 100 MVA transformer which was energized on June gth 32 and loaded on June 14th. The original plan was to delay further work at the 138 substation until 33 after we get past the summer load. However, the 62 MW transformer failed yesterday, creating 34 an outage that lasted about 10 minutes. Therefore, the 75 MW transformer will be put back in 35 service (which will take about two weeks) to provide backup. Installation oft the second new 100 36 MW transformer will start in September and hopefully be completed before the end oft the year. 39 department have been compromised by al lack of funding and al hesitation to increase rates. It 40 was the consensus of the group that a strong public relations campaign should be initiated to 41 make customers aware oft the ongoing maintenance required in order to maintain the integrity 42 and reliability of the system. Commissioner Irvine made ai motion that we put a two-page status 43 report in the next billing cycle explaining what maintenance has been done and why; major 44 improvements that need to be done; and to inform customers oft the causes of outages (i.e., 45 animals, trees, underground problems, etc.). Councilman Knight recommended that this same 46 letter be posted on the City web site. Commissioner Pitcher seconded the motion and voting was  37 38  The Commissioners expressed concern that operation and maintenance needs oft the  Page 2 of5    (PC, minutes. June 26, 2018)  unanimous. Commissioners Cushing, Becker, Bell, Irvine, and Pitcher and Councilman Knight  2 voted "aye". 3 4 6 8  A brief discussion followed regarding other capital projects that are planned and how the  5 staff assesses the critical issue "weak link" points. 7 TRANSFORMER BID APPROVAL  Mr. Pearce reported that the inventory of overhead and pad mount transformers is  9 running low and we: need toj purchase more to replenish inventory. Bids were sent to two 10 distributors and iti is the recommendation of staff that the bid for 65 transformers (various sizes) 11 from Anixter Power Solutions (for Ermco transformers) be approved in the amount of 12 $136,784.00. An 8-week delivery was promised. Commissioner Pitcher made a motion to 13 recommend to the City Council that the bid from Anixter Power Solutions be approved as 14 presented. Commissioner Bell seconded the motion and voting was unanimous. Commissioners 15 Cushing, Becker, Bell, Irvine, and Pitcher and Councilman Knight voted "aye".  16 18  17 1100 URD CABLE BID APPROVAL  Mr. Pearce explained that the inventory of1100 URD Primary cable is running low and  19 needs to be replenished. The cable will be used on several feeder upgrade projects on the 20 system. The cable which has been used is a 600 amp. jacketed cable with one-third neutral with a 21 40-year warranty. It is manufactured by Okonite and is a single source item. It is the staff's 22 recommendation that the quote from Codale Electric for 5,200 feet of11001 URD Okonite cable 23 in the amount of $41,184 be approved. Commissioner Pitcher motioned to recommend approval 24 ofthis purchase to the City Council, as presented. Commissioner Becker seconded the motion 25 which carried unanimously. Commissioners Cushing, Becker, Bell, Irvine, and Pitcher and 28 OVERHEAD1 TOUNDERGROUND DISTRIBUTION REBUILD APPROVAL 30 asphalting their parking lot and has removed the asphalt in the right-of-way on the west end of 31 their property. BCL&P has five poles in that area all ofwhich have underground dips feeding 32 pad mount transformers and junction boxes. With the road being torn up for construction, iti is 33 timely to take this opportunity to underground the power system and tie the transformers and 34 junction boxes together, thus removing the overhead distribution lines and five poles.  26 Councilman Knight voted "aye".  27 29  Mr. Veigel reviewed that the Colonial Square shopping area isi in the process ofre-  35 36  M.C. Green is the contractor currently working on1 the parking lot and has been asked to  37 give us a quote to dig a trench, backfill, and restore that area. The quote from M.C. Green is 38 $21,130 and staff recommends approval. Following al brief discussion, Commissioner Becker 39 motioned to recommend to the City Council that this sole source bid be approved, as 40 recommended by staff. Commissioner Pitcher seconded the motion which carried unanimously. 41 Commissioners Cushing, Becker, Bell, Irvine, and Pitcher and Councilman Knight voted "aye". 44 Mr. Johnson, without City Council approval. Mr. Johnson said he can approve anything under 45 $20,000. Discussion followed which reflected that this is quite al low amount and requires extra 46 time and effort from the stafft that could be better spent on other things. Commissioner Bell  42 43  Commissioner Pitcher asked what the cap was for expenditures that could be approved by  Page 3of5    (PC, minutes. June 26, 2018)  1 made a motion that ai recommendation be made to the City Manager and City Council that Mr. 2 Johnson have discretionary spending power up to $50,000. Commissioner Pitcher seconded the 3 motion and voting was unanimous. Commissioners Cushing, Becker, Bell, Irvine, and Pitcher  4 and Councilman Knight voted "aye". 7 SOLARINSTALLATIONSUPDATE  5 6 8  Mr. Johnson reported that a' "fair amount oft time" is being spent on solar customers/  9 companies who are pushing for battery installations. And though the battery can supply power to 10 the individual customer during an emergency, it needs tol have the ability to be isolated from our 11 system, and cannot back-feed, as a safety feature for BCL&P employees. Councilman Knight 12 asked ifthere was a precedent with other commercial companies to approve the battery without: a 13 separator. Mr. Johnson said hei is not aware ofany and that he will stay firm in his position to  14 protect the safety of our employees.  15 17 18 19 20 21 22 23 24 25 26 28  16 POWER SYSTEMS OPERATONS REPORTS  The following items were included ini the packet, but not discussed in the meeting:  a. April 2018 Resource Reports  b. May 2018 Lost Time Related Injuries/Safety Report  May 2018 Public Relations Report d. May 2018 Outage Reports  27 OTHER BUSINESS  Mr. Johnson reported that UAMPS is attempting to find new: members toj participate in  29 the NuScale CFPP and is sponsoring another tour at Corvallis. The tour will be. July 12-13, 30 2018. He asked that ifany oft the Commissionery/Councl were interested in participating in this  31 tour to let him know.  32 33  There will be a UAMPS member conference in Logan on August 12 - 14 and he  34 referenced a copy ofthe Agenda. Anyone who is interested in attending should let Mr. Johnson 35 know as soon as possible because housing could be limited. Councilman Knight, and  36 Commissioners Beck, Bell and Cushing said they would like to go.  37 38  Chairman Cushing stated how much he appreciates the Board and the time and expertise  39 they give to this responsibility. He also acknowledged the staff and noted how proud hei iso of 40 them. Councilman Knight added that the City Council relies and leans on the Commission and  41 has great faith and confidence in this body. 43 NEXT POWER COMMISSION  42 44 45 46 ADJOURN  The next meeting of the Power Commission will be on August 28, 2018 at 8:00 a.m.  Page 4 of5    (PC minutes. June 26, 2018)  The meeting adjourned at 9:15 a.m. on ai motion made by Commissioner Bell and  2 seconded by Commissioner Pitcher. Voting was unanimous with Commissioners Beck; Bell,  3 Cushing, Irvine and Pitcher, and Councilman Knight voting "aye".  4 5 6 7 8  JohyCushing,    Page 50 of5