MINUTES OF THE MEETING BOUNTIFUL CITY POWER COMMISSION AUGUST 27, 2024-8:00 a.m. Those in Attendance  2 3 4 5 6 7  OF THE  8 Power Commission 9 Susan Becker, Acting Chairwoman 10 Dan Bell, Commissioner 11 David Irvine, Commissioner 12 John Marc Knight, Commissioner 13 Jed Pitcher Commissioner 14 15 Visitor 16 Gary Davis, Bountiful Resident 17 18 Excused 19 Paul Summers, Chairman 20 Cecilee Price-Huish, Councilwoman 21 22 WELCOME 23 26 28  Power Department Allen Johnson, Director Alan Farnes, Generation Superintendent Dave Farnes, Safety/Customer Service Tyrone Hansen, Accountant Jess Pearce, Superintendent of Operations Luke Veigel, Engineer Nancy T.Lawrence, Recording Secretary  Chairwoman Becker called the meeting to order at 8:00 a.m. and welcomed those in  24 attendance. Commissioners Summers and Councilwoman Price-Huish were excused. The  25 invocation was offered by Alan Farnes. 27 MINUTES - June 25,2024  Minutes of the regular meeting oft the Bountiful Power Commission held June 25, 2024  29 were presented and unanimously approved as written. Commissioner Pitcher made the motion 30 to approve, and Commissioner Bell seconded the motion. Commissioners Becker, Bell, Irvine, 33 BUDGET REPORT - PRELIMINARY YEAR TO DATE 12-MONTH PERIOD  31 Knight and Pitcher voted "aye". 34 ENDEDJUNE 30, 2024  32 35  Mr. Hansen presented the Preliminary Budget Report for the Fiscal Year-to-date 12-  36 Month period ended. June 30,2024. Hei noted that there will be a "push-back"f for. June's Electric 37 Metered Sales, and there will also be adjustments to Capital and Depreciation. Total revenues 38 Year-to-Date were $33,832,721, below its HAB by ($563,898). Major Items above their HABs 39 included Air Products, at $91,294, with an average load factor of 65.0% for the year-to-date 40 period; Sundry Revenues was abovel by $59,435; and Interest Income onl Investments was above 41 its HAB by $210,365. He noted that June Interest Income has not yet been posted. Revenues 42 (below) their HABs included Electric Metered Sales, ($629,412), below its HABI by 2.1%; and 43 Contribution in aid to Construction, at ($289,192), which included $80,000 for line extensions,  44 $63,000 for Bountiful Elementary, and $17,000 for Utopia Huts.  45  Page 10 of5    (PC, minutes. August 27, 2024)  1  Total Operating Expenses YTD were $27,473,164, below the HAB by $5,188,455.  2 Major items (above) budget was Credit Card Merchant Fees, at ($21,033); and Insurance 3 Expense at ($34,113). Expenses below budget included Power Cost Expense at $3,910,295, 4 with Power Generation under by $1,100,000; and Power Resources was also below budget by 5 $2,800,000 largely due to the CRSP resource being available. Distribution Expense was below 6 its HAB by $184,185; Street Light Expense was below its HAB by $116,031; Substation 7 Expense was below the HAB at $80,522; and Meters Expense was below the HAB at $144,074. 8 With Electric Metered Sales being low, the Transfer to the General Fund was below its HAB  9 by $122,941. 10 11  Total Capital Expenditures YTD were $761,192 and included $21,000 for Brooks  12 Fabric Townhomes; $50,000 for Bountiful Elementary; $28,000 for 2055 South Main 13 Townhomes; $180,000 for 572/574 Feeder Tie; $197,000 for a cable puller; $103,000 for a 14 service truck; $45,000 for a Ford Explorer; plus an addition of $152,000 for the engineering  15 fees for the Northwest substation when they have been posted.  16 17 20 21  Total Labor and Benefits was $5,096,124. Asof30J June (the last pay period paid in the  18 YTD period), 100% or $5,304,293 oft the TL&B could have been spent; the actual TL&B was  19 $208,169 below that target  The Net] Margin for the YTD was $5,598,365, as revenues are close to budget and power  22 costs are coming in well under budget. Total cash and equivalents were a net $22,746,119 at 23 month end, up $6,299,154 from $16,446,965 at 30 June 2023, and $6,300,119 above the 24 $16,446,000 total reserved cash requirement. Major sources and (uses) of cash at month end 25 compared to fiscal year-end 2023 included the $737,226 decrease in total accounts receivable; 26 decrease of $225,314 in total inventories; and decrease of $99,894 in prepaid expenses. Uses 27 of cash included $(175,910) in total accounts payable, and $(368,545) increase in net fixed  28 assets. 29 30  Following a brief discussion regarding the estimated margin at the end of the year,  31 affected dramatically by lower power costs expenses. Commissioner Pitcher made a motion to 32 accept the budget report as presented, and Commissioner Bell seconded the motion which 33 passed unanimously. Commissioners Becker, Bell, Irvine, Knight, and Pitcher voted "aye".  34 36 39 40 41  35 TRANSFORMER PURCHASE APPROVAL 38 purchase 100 transtormers, as follows:  Mr. Veigel reported that there continues to be long lead times for transformers and we  37 are focused on keeping an adequate inventory. Invitations to bid were sent to four vendors to  50 (ea) 50K KVA single phase 240/120 pad mounted, and 50 (ea) 100 KVA single phase 240/120 pad mounted  42 Bids were evaluated onl botht the purchase price and delivery (60 weeks) and have been reviewed 43 by staff and the City Manager. Itis the recommendation of staff to award the bid to Western 44 United Electrical (Salem, Utah) totaling $465,304.85 for 100 Ermco transformers. These will 45 be paid for from next year's budget (based on delivery date). Commissioner Knight made a 46 motion to support the staff recommendation, Commissioner Irvine seconded the motion and  Page 2 of5    (PC minutes August. 27, 2024)  voting was unanimous in the affirmative. Commissioners Becker, Bell, Irvine, Knight, and  2 Pitcher voted "aye".  3 5  4 1100 URD CABLE PURCHASE  Mr. Veigel reviewed that costs have been budgeted to upgrade a feeder on 1800 South  6 and 400 East. This cable will be used for the second phase oft the project, planned for this fall. 7 Bids were submitted to two vendors for 5,200 feet of 1100 URD Primary cable. Iti is the 8 recommendation ofs staff to approve the bid from Irby / Okonite for $74,000 with a delivery of 9 2-4 weeks. Commissioner Irvine motioned to support this recommendation, Commissioner 10 Pitcher seconded the motion and voting was unanimous. Commissioners Becker, Bell, Irvine,  11 Knight, and Pitcher voted "aye".  12 14  13 PM-11 UNDERGROUND SWITCHGEAR PURCHASE  Mr. Veigel explained that we always keep at least one PME-11 underground switchgear  15 in inventory and we need to replenish our inventory now. This gear is a single source item and 16 is only available from one vendor. The price for the switchgear and fuse holders is $22,180 17 and delivery is September 2025. It is the recommendation of staff to make this purchase. 18 Commissioner Bell made a motion to support staff recommendation, Commissioner Knight 19 seconded the motion and voting was unanimous. Commissioners Becker, Bell, Irvine, Knight,  20 and Pitcher voted "aye".  21 23  22 LINE CREW SERVICE BODY PURCHASE  Mr. Pearce reviewed that the BCL&P fiscal year 2024-25 budget includes the purchase  24 of a new line crew service truck to replace Unit #5059, a 2012 Line Crew service truck. 25 Invitations to bid on the service body only were sent to two suppliers. Mountain States 26 Industrial Service (SLC) submitted the only bid, in the amount of $47,644 with a 4-5 month 27 delivery. The bid was reviewed by staffa and the City Manager and it was their recommendation 28 that this bid be approved. Mr. Pearce said that the purchase of the cab and chassis will be 29 initiated next month. Commissioner Irvine motioned to support the staffrecommendation and 30 Commissioner Pitcher seconded the motion which carried unanimously. Commissioners  31 Becker, Bell, Irvine, Knight, and Pitcher voted "aye". 33 SMALLDUMP BODY PURCHASE  32 34  The BCL&P fiscal year 2024-25 budget includes the purchase of a new small dump  35 truck. This vehicle will replace Unit #5049, a 2008 small dump truck which is used in 36 maintaining and building the electrical system. The cab and chassis will be purchased from a 37 separate supplier for the dump body. Mr. Pearce reported that Reading Truck has the State bid 38 contract for the Rugby 3-4 yard dump body, at a total price of $22,898.99 with a 30-45 days 39 delivery, after chassis delivery on site. Itis the staffr recommendation to approve this purchase, 40 as part oft the overall budget of$105,000 fori this vehicle. Commissioner Knight made ai motion 41 to support this recommendation and Commissioner Irvine seconded the motion which carried 42 unanimously. Commissioners Becker, Bell, Irvine, Knight, and Pitcher voted "aye".  43 45  44 ECHO FIRE UPDATE  Mr. Johnson referred to the July24, 2024 fire on the mountain that involved the 46KV  46 transmission line which runs from Bountiful to the Echol Hydro project. He briefly summarized  Page 3 of5    (PC minutes August 27, 2024)  that the fire burned approximately 360 acres, and the Summit County Fire Investigators have 2 determined it was caused from aj power. line spark. Hei noted that the entire department has been 3 impacted and worked together cooperatively in the repair and restoration of this line and he  4 expressed appreciation for their efforts.  5 6  A power point presentation was used by staff to assist in sharing the location, terrain,  7 equipment used, and fire damage. Mr. Veigel explained that the Echo transmission line is 26 8 miles long and the Dikker Hill fire damaged six (6) BCL&P poles; however, due to the terrain 9 and other extenuating factors, 18 poles needed to be replaced. Four private properties were 10 impacted by the fire one by the fire damage and three were needed for access. One  11 unoccupied structure was threatened.  12 13  Mr. Pearce reviewed the re-construction process. He said that Wasatch Electric is  14 providing a six-man crew that works 16-hour days. The goal is to complete the project this 15 Friday (August 30t). He said BCL&P department linemen have visited the site to get an  16 understanding oft the work that is being done by Wasatch Electric.  17 18 21 22 23 24 25 26 27 28  Mr. Farnes noted that the transmission line was built in 1986-87 and he explained the  19 process that was used in preparation for bidding fire related expenses. Summarized damages,  20 which do NOT: include restoration:  $250.000.00 deductible 68,887.84 poles 86,394.66 transmission line materials 498,785.00 power line contractor Plus in-house labor  He noted that the City's procurement code provides that the City Manager may  29 authorize expenditures in excess of $20,000 "for emergency expenditures or for actions which 30 require prompt execution to avoid financial harm or loss, or to save cost, as determined by the 31 City Manager". He said that three purchases have been executed that exceed the $20,000  32 approval threshold, as presented ini the following sub-categories:  33 34 37 38 41 42 45  Power Pole Purchase. The fire damaged 6 poles and impacted 12 others which must  35 ber replaced, along with the suspension insulators that cross I-80. We have purchased 18 60-to-  36 80-foot poles from Stella-Jones (Ogden facility) for the sum of $68,887.84.  Alpha Power Purchases. Alpha Poweri is the local supplier who keeps an inventory of  39 materials for transmission line. We have met with them to purchase the necessary insulators, 40 arms, and hardware to rebuild the poles. The sum oft these materials is $86,361.66.  Contractor. Approval. Five power line contractors were contacted; two responded and  43 the other three did not supply a bid due to manpower and timing. Staff recommended that we  44 accept the low bid from Wasatch Electric for the sum of $498,785.00.  Page 4 of5    (PC minutes. August 27, 2024)  Mr. Johnson said that the costs for the repair will be paid from the Power Department  2 Echo Hydro Transmission line account. This repair was not budgeted and will exceed the 3 budget and will require opening the budget at the end of the year. Other costs (in addition to 4 those listed above) will include restoration of the area. Concern was expressed regarding the 5 future costs or renewal of the policy by the insurance company. Following discussion, 6 Commissioner Bell motioned to approve the expendituresycontracts listed above and 7 Commissioner Pitcher seconded the motion. Voting was unanimous with Commissioners 8 Becker, Bell, Irvine, Knight and Pitcher voting "aye". The Commissioners expressed 9 appreciation to the department for all the work that has been involved and in such a timely  10 manner. 11 13  12 RESOURCE UPDATE  Mr. Johnson briefly reviewed power resources, noting that UAMPS hit ai new peak on  14 July 11, 2024 when we were selling back to the market. The Freemont project is questionable 15 because of network issues. The upgraded IPP plant cannot be operational until Spring-July, 16 2025 and the existing plant is still burning coal. The SB 161 special session ofthe Legislature 17 took hard dates out and the deadline has been moved to December 2024. The increase in 18 transmission rates (passed on to users as ai rate increase) was briefly discussed and it was noted 21 Thej following items were included ini the packet, but not discussed in the meeting.  19 that transmission rates are monitored by FERC.  20 22 24 25 26 27 28 30 31 33 34 a.m. 35 36 ADJOURN 37 40 41 42 43  23 POWER SYSTEMSOPERATIONS REPORT  a. May June 2024 Resource Reports b.July 2024Lost' Time/Safety Reports c.July 2024 Public Relation Reports d.. June 2024 Outage Reports  29 OTHER BUSINESS  None  32 NEXT POWER COMMISSION  The next meeting of the Power Commission will be held on September 24, 2024 at 8:00  The meeting adjourned at 10:00 a.m. on a motion by Commissioner Pitcher and  38 seconded by Commissioner Bell. Voting was unanimous with Commissioners Becker, Bell,  39 Irvine, Knight, and Pitcher voting "aye."  An Berkee Susan Becker, Acting Chairwoman  Page 50 of5