1 2 3 4 5 6  MEETING OF THE BOUNTIFUL CITY POWER COMMISSION January 23,2018 - 8:00 a.m. Those in Attendance  7 Power Commission 8 John Cushing, Chairman 9 Susan Becker 10 Dan Bell 11 David Irvine 13 Jed Pitcher 14 Paul Summers 15 16 City Manager 17 Gary Hill 18 19 WELCOME 20 22 23  Power Department Allen. Johnson, Director Jay Christensen Alan Farnes Dave Farnes Jess Pearce Luke Veigel Recording Secretary Pat Wood/Nancy Lawrence  12 John Marc Knight, City Council Rep.  Chairman Cushing called the meeting to order at 8:00 a.m. and welcomed those in Chairman Cushing recognized Beth Holbrook who has received a new Council  21 attendance. The invocation was offered by Commissioner Summers.  24 assignment and will no longer be serving as the representative to the Power Commission. He 25 expressed appreciation for her input and contributions to the Commission, following which 26 Councilwoman Holbrook thanked everyone on the Commission for the opportunity to meet with 27 them, noting that this group is extremely collaborative and theiri individual backgrounds and 28 expertise are a great benefit to the City. Mr. Johnson expressed his appreciation for her service 29 and dedication and her willingness to provide strong support to the Commission.  30 31  Chairman Cushing then recognized John Marc Knight who has been assigned to serve as  32 the Council representative on the Power Commission and thanked him for accepting this 33 assignment. Councilman Knight stated that he is grateful for the opportunity, for which he has  34 been training for the past ten years. 36 MINUTES-NOVEMBER 24,2017  35 37  Minutes of the regular Power Commission meeting held November 24, 2017 were  38 presented for approval. Commissioner Summers motioned to approve the minutes as written. 39 Commissioner Irvine seconded the motion and voting was unanimous with Commissioners 40 Becker, Bell, Cushing, Irvine, Knight, Pitcher and Summers voting "aye".  41 42  Commissioner Pitcher referred to the City's bond rating, as it relates to the recent  43 Standard and Poor's Report, and suggested that the City should issue a press release in our local 44 newspaper and the Salt Lake Tribune to inform citizens of] Bountiful's positive financial position. 45 He expressed dismay regarding inaccurate statements that were made during the recent 46 campaign/election process and said he felt the press release could provide a positive, needed  47 benefit. Mr. Hill said that he will follow up.  48  Page 1 lof4    (PC minutes. January 23, 2018)  1 4 6 7 8 9  Chairman Cushing explained that several members of the group need to leave early, and  2 inasmuch as the discussion on resources (Agenda Item No. 10) is critical at this time, that this  3 item will be moved up. 5 RESOURCE UPDATE  Carbon Free Power Project Solar Project Update -IPP Update  Mr. Johnson reported that we have come to the point on carbon resources that we will  10 need to soon make a decision as to what we want to do. He reviewed current resources and their 11 projected timetables and costs, which establishes the fact that acquiring additional base load 12 resources is critical to meeting the goals oft the department inj providing reliable and 13 economically reasonable power service. Options for new/additional. resources that are currently 14 being considered include the Carbon Freel Power Project (NuScale), the Fremont Solar Project, 15 the Olmstead Hydro project, and the Intermountain Power Project (IPP). He summarized the 16 projected costs/KW, and financial and contractual commitments with each resource. Following a 17 lengthy discussion, the concurrence oft the group was that the Power Commission would like to 18 study the NuScale option in greater depth and Mr. Johnson will coordinate with UAMPS to  19 provide this opportunity.  20 22  21 ELECTION OF BOARD CHAIRMAN AND VICE CHAIRMAN  Chairman Cushing reviewed that, per Ordinance, iti is time to elect a Chairman and Vice  23 Chairman oft the Power Commission. It was the consensus oft the group, with a verbal "yes" 24 vote, that the currently serving officers be elected to fill another term: John Cushing, Chairman; 25 and Jed Pitcher, Vice Chairman. Those voting "yes" were Commissioners Cushing, Becker, 28 BUDGET REPORT- - YEAR-TO-DATE 6-MONTH PERIOD ENDING31 DECEMBER, 31 31 December, 2017. He noted that Fiscal Year (FY) 2018 is final through November 2017,  26 Bell, Irvine, Pitcher, and Summers, and Councilman Knight.  27 29 2017 30 33 34  Mr. Christensen presented the Budget Report for the Year-to-Date 6-month Period ending  32 while December 2017 is preliminary.  Total Revenues YTD were $16,694,232, above its historically allocated budget (HAB) by  35 $540,551. Major items above budget were. Electric Metered Sales (EMS), above its HAB, by 36 $40,904 or 0.3 percent; Air Products, above its HAB by $243,999 or 21.7 percent; Contributions 37 in Aid to Construction was above its HAB by $91,620 and included several construction 38 projects; preliminary Interest Income on. Investments (operating cash) was above its HAB by 39 $42,933 despite missing data for December; and Gain on Sale of Fixed Assets was above its  40 HAB by $42,413 with the sale oft two (2) service trucks and al backhoe.  41 42  Total Operating Expenses YTD were $13,389,139, below its HAB by $854,299. Major  43 items below their HABs were: power costs, below by $324,028; Transmission, below by 44 $70,520 due to some budgeted projects not yet being done; Distribution was below its HAB by 45 $62,795 with budgeted work; Substation was below by $53,957 as budgeted projects had not yet  46 begun.  Page 2 of4    (PC minutes. January 23, 2018)  1 2 5 6 9 10 13 15  Total Capital Expenditures YTD were $1,972,399. and included work on the 138KV  3 substation upgrade, the Transmission Phase 7 upgrade, and the unplanned but approved purchase  4 oft the Fisher property north oft the oftice/warehouse.  The net margin YTD was $1,332,694, above its HAB by $894,663, due largely to lower  7 power costs, higher Air Products income, and many operating expenses that were below budget.  8 The preliminary net margin for the month was $192,836.  Following al brief discussion, the Budget Report was unanimously approved on ai motion  11 made by Commissioner Pitcher and seconded by Councilman Knight. Commissioners Cushing, 12 Becker, Bell, Irving, Pitcher and Summers, and Councilman Knight voted "aye".  14 S&P RATING UPDATE  Chairman Cushing referred to the RatingsDirect Report which is included ini the  16 Commission Packet. This Report, prepared by Standard and Poors, summarized the rationale 17 that was used to arrive at its "A+" on the 2010 electric revenue bonds. Factors contributing to 18 this rating were: Stable and diverse customer base; competitive rates; and historically strong 19 coverage and liquidity levels. The only offsetting factor to these strengths is the department's 20 relatively small size. The business profile score is *4" on a scale of one to 10 with "1" being the 21 strongest score attainable. The stable outlook reflects the expectation that, over the next two 22 years, the department will continue to adjust rates as needed to maintain strong financial margins  23 and fund ongoing capital needs. 25 SACSWITCHGEAR BID APPROVAL  24 26  Mr. Pearce reviewed that there is a need to install and/or replace five (5) underground  27 switchgear on the system this spring. Invitations to bid were send to two (2) major suppliers and 28 iti is the recommendation of stafft that the bid from Codale Electric - S&C be approved for (5) 29 S&C Switchgear at a total cost of$100,300. Commissioner Becker made ai motion that the 30 Commission recommend approval oft the bid for switchgear (to bej placed into inventory), as 31 presented. Commissioner Bell seconded the motion which carried unanimously. Those voting 32 "aye" were Commissioners Cushing, Becker, Bell, Irvine, Pitcher and Summers, and  33 Councilman Knight. 35 138 KV PROJECTUPDATE  34 36  Alan Farnes reported that we have started meeting with Cache Valley Electric (CVE)  37 every other week to keep this project on schedule. Some grading work and some fence 38 relocation work has been completed. The CVE crews will be on site full-time starting January 39 29th. Itis estimated that we will be taking the north bay out of service for demolition around  40 mid-February. 41 43  42 PHASE71 PROJECTUPDATE  Mr. Veigel reported that the Phase 7 Transmission Line Rebuild is completed and the  44 final walk through with ECI and CVE was. January 19th. The budgeted cost for this project was 45 $500,000; the final cost was $614,530. General Contractor change orders accounted for  46 $24,583.00.  Page 3 of4    (PC minutes. January 23, 2018)  1 3 4 5 6 7 8 9 11 13 15 16 17 18 ADJOURN 19 20 21 22  2 POWER SYSTEMS OPERATIONS REPORT:  The following items werei included in the packet, but not discussed in the meeting: a. October and November 2017 Resource Reports b.) November and December 2017 Lost Time Related Injuries/Safety Reports C. November and December 2017 Public Relations Report d. November and December 2017 Outage Reports  10 EXECUTIVE SESSION (none) 12 OTHER BUSINESS  Mr. Johnson reviewed an updated copy of the 2018 Power Commission Schedule. He The next Power Commission meeting will be held February 20, 2018 at 8:00 a.m.  14 called attention to the APPA National Conference and UAMPS and IPA meetings.  The meeting officially adjourned at 10:10a.m.  John  aag  Page 4 of4