1 2 3 4 5 6  MEETING OF THE BOUNTIFUL CITY POWER COMMISSION February 20, 2018- -8 8:00 a.m. Those in Attendance  7 Power Commission 8 John Cushing, Chairman 9 Susan Becker 10 Dan Bell, Commissioner 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 Luke Veigel Recording Secretary Nancy Lawrence  12 John Marc Knight, City Council Representative Jess Pearce  Chairman Cushing called the meeting to order at 8:00 a.m. and welcomed those in  20 attendance. The invocation was offered by Jay Christensen.  22 MINUTES- January 23,2018  Minutes of the regular Power Commission meeting held January 23, 2018 were presented  24 for approval. Commissioner Summers motioned to approve the minutes as written. 25 Commissioner Becker seconded the motion and voting was unanimous with Commissioners 26 Becker, Bell, Cushing, Irvine, Pitcher and Summers and Councilman Knight voting "aye". 28 BUDGET REPORT - YEAR-TO-DATE 7-MONTH PERIOD ENDINGJANUARY3I, 31 January 31,2018. He noted that Fiscal Year (FY) 2018 is final through December 2017 and 32 January 2018 is preliminary due to missing data fori interest incomes, bank and credit card fee 33 expenses, and transfer to rate stabilization fund expense. However, these figures are not  27 29 2018 30  Mr. Christensen presented the Budget Report for the Year-to-Date 7-month Period ending  34 expected to materially affect the YTD net margin.  35 36  Total Revenues YTD were $19,039,837, above its historically allocated budget (HAB) by  37 $311,379. Major items above their HABS were. Air Products income, above by $222,529; 38 preliminary Interest Income, above by $69,541; and Contributions in Aid to Construction, above 39 by $72,023. Electric Metered Sales was below its HAB by $(192,385) due to the mild winter  40 weather. 41 42  Total Operating Expenses YTD was $15,438,950, below its HAB by $999,883. The most  43 significant item below budget was. Power Costs, below its HAB by $501,756, the: result of 44 careful purchasing and scheduling of power resources, selective use of the three turbines, and 45 mild winter weather. Also below their HABs were Distribution, below by $80,693; 46 Transmission, $69,384 (due toj projects being postponed); and Labor & Benefits, below by 47 $186,035. The Substation was temporarily above its HAB with the budgeted purchase oft four  48 46KV breakers but will even out as the budget year progresses.  Page 1 of4    (PC minutes February. 20, 2018)  1 2  Total Capital Expenditures YTD were $2,176,369, which included $1,322,375 on the  3 budgeted 138 KV substation project, $270,504 on the budgeted transmission phase 7 project, and 4 $519,065 on the unplanned but approved purchase oft the Fisher property. He noted that the 5 transmission phase 7 project went over budget by $ and there will yet be additional expenditures. 8 power costs, higher Air Products income, and many operating expenses that were below budget.  6 7 10 11  The Net Margin YTD was $1,424,517, above its HAB by $810,833, due largely to lower  9 The preliminary net margin for the month was $54,885.  Commissioner Pitcher asked ifLabor and Benefits expenses were down due toj positions  12 not being filled. Mr. Christensen said that the main reasons were (1)long-term employees have 13 retired and those newly hired are: not as high on the salary schedule; and (2) a decrease in 14 overtime due toj proactive maintenance projects which have decreased the number of outages. 15 The impact oft the new tax act was also discussed and it was the general concurrence that the  16 power industry will not bei impacted by this new legislation.  17 18  Following discussion Commissioner Becker made ai motion to recommend approval of  19 the Budget Report, as presented. Commissioner Pitcher seconded the motion and voting was 20 unanimous. Commissioners Becker, Bell, Cushing, Irvine, Pitcher and Summers and  21 Councilman Knight voted "aye". 23 138 KV PROJECTI UPDATE  22 24  ECI Engineering Approval. Alan Farnes explained that Electrical Consultants, Inc.  25 (ECI) was hired initially to assist with the rebuild ofthe 138 KV substation. Because the scope 26 ofthis project has changed, in addition to the additional time and efforts required to interface 27 compatibly with Pacificorp, the original contract amount has changed. ECI has provided an 28 updated cost ofnot-to-exceed $560,000 which includes an increase of$75,000. This brings the 29 total cost for the engineering at about 10.5% ofthe total project cost. He said that the staff has 30 reviewed the request from ECI and recommends approval. Councilman Knight made a motion 31 torecommend approval oft the additional $75,000 for engineering costs associated with the 138 32 substation upgrade. Commissioner Summers seconded the motion and voting was unanimous 33 with Commissioners Becker, Bell, Cushing, Irvine, Pitcher and Summers and Councilman  34 Knight voting "aye".  35 37  36 DIRECTIONAL BORING BID APPROVAL  Mr. Veigel reported that there are several underground projects on our system where  38 conduit needs to be installed. In an effort to minimize the inconvenience to residents and limit 39 the restoration of property (both private and public), bids have been requested from contractors 40 to install these conduits using directional boring. Bids were requested from six (6) contractors 41 and four responded. The staffand City Manager have reviewed the bids and it is the 42 recommendation to award the bid tol low bidder, Americom Technology, Inc. ini the amount of 43 $245,689.00. He noted that this work is identified in the FY 2017-18 budget and is within the 44 identified budget. Following a short discussion, Commissioner Summers motioned to award the 45 bid to Americom Technology, Inc., as recommended. Commissioner Bell seconded thc motion 46 and voting was unanimous. Commissioners Becker, Bell, Cushing, Irvine, Pitcher and Summers  Page 2 of4    (PC minutes February 20, 2018)  and Councilman Knight voted "aye". 3 TRANSFORMER BID APPROVAL  2 4  Mr. Pearce reported that our inventory of pad mount transformers is running low and new  5 ones need to bej purchased to replenish inventory. Invitations to bid were sent to two (2) major 6 supplies and three bids were received. Itist the recommendation of staff and the City Manager to 7 accept the bid from Anixter Power Solutions for 46 Ermco pad mound transformers in the 8 amount of $83,814.00. He noted that this was not the low bid, but that the bid from Anixter 9 Power Solutions for 46 GE transformers ($78,055.00) was not favored due to our recent 10 experience of delayed delivery from GE. This item was briefly discussed and Commissioner 11 Pitcher made a motion to recommend that the City Council approve the bid from Anixter for 12 Ermco transformers in the amount of $83,814.00. The motion was seconded by Commissioner 13 Irvine and carried unanimously. Commissioners Becker, Bell, Cushing, Irvine, Pitcher and  14 Summers and Councilman Knight voted "aye".  15 17  16 CFPP UPDATE  Allen Johnson reviewed that a site visit has been scheduled for persons interested in the  18 Carbon Free Power Project in Corvallis, Oregon on March 8th and 9th for the purpose of 19 becoming more: familiar with this proposed project. Following this site visit, ai meeting has been 20 scheduled on March 15th with Doug Hunter (UAMPS) and the Power Commission for the 21 purpose of addressing concerns about the contract and specifically the off-ramps should the City  22 come to aj point where they would not want to continue with the project.  23 24  Mr. Johnson referred to al Resolution which has been drafted by UAMPS, entitled "A  '25 Resolution Relating to the Carbon Free Power Project, settingforth additional limits on the 26 Development Costs that may be incurred by UAMPS and related. Matters" , and noted that the 27 contract discussed in this Resolution applies Only to the first year (through March 2019). What 28 will happen between the first and second year is of grave concern, particularly since the 29 participants oft the project have not adequately been identified. Another concern that Mr. 30 Johnson mentioned was the membership of any member is limited to 25 percent. Itis hopeful 31 that the site visit to Oregon and the meeting with Mr. Hunter will give beneficial information.  32 34  33 IPP UPDATE  Allen Johnson reviewed that the IPP project is scheduled to convert to natural gas by  35 2025; however, economic interests in Utah are putting pressure to continue to have this as a coal- 36 fired plant. Discussion focused briefly on the current legislation (carbon tax) threatening that 37 Utah will file a suit against California ifcoal (from Utah) is prohibited from being shipped to 38 China. Although Los Angeles isi in need of generation and transmission, the State's mandate for 39 carbon-free energy complicates the project. Bountiful's current contract allows for 100 percent  40 ofthe resource to be laid offt to California. 42 SOLAR INSTALLATIONS UPDATE  41 43  Ini response to a question from the Commission, Mr. Pearce reported that solar  44 installations are increasing at about the same rate as in the past - one or twoj per month. There 45 are: four net metering systems that are still being processed. Itisestimated that solar customers  46 use about 10j percent of what they generate.  Page 3 of4    (PC, minutes February 20, 2018)  1 3 4 5 6 7 8 9 10 11 13 15 16 17 18 ADJOURN 19  2 POWERSYSTEMS OPERATIONS REPORT  a. December 20171 Resource Report: included in the packet, but not discussed in the b. January 2018 Lost Time Related Injuries/Safety Reports: included in the packet, but January 2018 Public Relations Report: included in the packet, but not discussed in d. January 2018 Outage Reports: included in the packet, but not discussed in the  meeting  not discussed in the meeting. the meeting meeting  12 OTHER BUSINESS  There will be a Legislative Reception at the State Capitol today at 4:30 p.m. that all The next Power Commission meeting will be held March 27, 2018 at 8:00 a.m. The meeting adjourned at 9:15 a.m. on ai motion made by Commissioner Pitcher and  14 Commissioners are invited to attend.  20 seconded by Commissioner Becker. Voting was unanimous in the affirmative with 21 Commissioners Becker, Bell, Cushing, Irvine, Pitcher and Summers and Councilman Knight  22 voting "aye". 23 24 25  Em Johp Cushing,  Br  Page 4 of4