MINUTES OF THE 2 BOUNTIFUL LIGHT & POWER COMMISSION 3 January 28, 2025 - 8:00 a.m. 4 5 Those in Attendance 6 7 Power Commission Power Department 8 Paul Summers, Chairman Allen Johnson, Director 9 Susan Becker, Commissioner Alan Farnes, Generation Supt. 10 Dan Bell, Commissioner Dave Farnes, Safety/Customer Service 11 David Irvine, Commissioner Tyrone Hansen, Accountant 12 John Marc Knight, Commissioner Jess Pearce, Supt. of Operations 13 Jed Pitcher, Commissioner Luke Veigel, Engineer 14 Cecilee Price-Huish, Councilwoman Darlene Baetz/Nancy Lawrence, 15 Recording Secretary 16 17 WELCOME 18 Chairman Summers called the meeting to order at 8:00 a.m. and welcomed those in 19 attendance. The prayer was offered by Chairman Summers. 20 21 MINUTES - NOVEMBER 21, 2024 22 Minutes of the Joint meeting of the Bountiful City Council and the Bountiful Power 23 Commission held November 21, 2024 were presented and unanimously approved as written. 24 Commissioner Knight made the motion to approve, and Commissioner Pitcher seconded the 25 motion. Commissioners Becker, Bell, Irvine, Knight, Pitcher and Summers, and 26 Councilwoman Price-Huish voted "aye". 27 28 ELECTION FOR CHAIRMAN - VICE CHAIRMAN 29 Mr. Johnson said that iti is time to re-elect the Chairman and Vice Chairman ofthe Power 30 Commission. He noted that Paul Summers, the current chairman, has served 15+ years on the 31 Power Commission and has been a tremendous asset to the Commission. Commissioner Irvine 32 said he would like to make a motion, but first to pay tribute to Commissioners Summers and 33 recognize not only his major contributions to the Power Commission but also thank him for 34 being "such a good friend". He then made the motion to elect Susan Becker as the Chairman. 35 Commissioner Bell seconded the motion which carried unanimously. Commissioners Becker, 36 Bell, Irvine, Knight, Pitcher and Summers, and Councilwoman Price-Huish voted "aye". 37 38 Commissioner Pitcher then made a motion to elect Dan Bell as Vice Chairman. The 39 motion was seconded by Commissioner Irvine and voting was unanimous. Commissioners 40 Becker, Bell, Irvine, Knight, Pitcher and Summers, and Councilwoman Price-Huish voted 41 "aye". 42 43 BUDGET REPORT - YEAR TO DATE 5-MONTH PERIOD 44 Mr. Hansen presented the Budget Report for the Year to Date 5-Month period ended 45 November 30, 2024. Total Revenues YTD were $17,284,696, above the HAB by $1,504,900. 46 The major item above budget was Electric Metered Sales at $1,119,195, 8.1% above its HAB; Page 1 of6 (PC minutes. January 28, 2025) 1 Air Products income, $138,603. was above its HAB with an average load factor of 78.8%; 2 Sundry Revenues were $54,229 above budget and Interest Income on Investments was above 3 its HAB at $186,296. Contribution in Aid to Construction was $(34,163), belowits HAB as a 4 result ofline extensions(S165K) and Utopia ($70K.). 5 6 Total Operating Expenses YTD were $13,740,786, below the HAB by $389,691. Power 7 Cost Expense was below its HAB at $540,254 (Power Generation was under $121K and Power 8 Resources Cost was under 418K). Other operating expenses that were below the HAB were Distribution Expense at $129,560; and Street Light Expense at $62,873. 10 11 The major item (above) budget was Hydro Transmission expense, $(660,524), which 12 includes a $500,000 payment to the contractor who worked on the Echo fire. Other fire costs 13 are still being negotiated. The Transfer to the General Fund was also above its HAB at 14 $(26,770). 15 16 Total Capital Expenditures YTD were $629,677, which included $9,000 at 400 South 17 Main, $15,000 for Renaissance Lot 11, $42,000 for Feeder 572/574 tie and $559,000 for the 18 Northwest Substation. 19 20 Total Labor and Benefits was $2,146,308. As of23 November 2024 (the last pay period 21 paid in the YTD period), 40% or $2,392,714 of the TL&B could have been spent; the actual 22 TL&B was $246,406 below that target. 23 24 The Net Margin for the YTD was $2,914,232, as revenues are above budget and power 25 costs are coming in under budget. 26 27 Total cash and equivalents were a net $25,198,382 at month end, up $2,138,008 from 28 $23,060,373 at 30 June 2024, and $9,024,382 above the $16,174,000 total reserved cash 29 requirement. Major sources and (uses) of cash at month end compared to fiscal year-end 2024 30 included the $882,166 decrease in total accounts receivable; increase of $(561,350) in total 31 inventories; and increase of$(64,908) in prepaid expenses.; decrease in total accounts payable 32 $(260,851); $(123,562) decrease in Accrued benefits and payroll; and the $(646,917) decrease 33 in other equity (excluding the net margin). Following a brief discussion regarding solar 34 customers and their relationship to the total load, Commissioner Pitcher made a motion to 35 accept the budget report as presented, and Commissioner Bell seconded the motion which 36 passed unanimously. Commissioners Becker, Bell, Irvine, Knight, Pitcher and Summers, and 37 Councilwoman Price-Huish voted "aye". 38 39 DIAMOND TREE EXPERTS CONTRACT EXTENSION 40 Mr. Pearce explained that BCL&P currently has a contract with Diamond Tree Experts 41 for two tree trimming crews (along with an in-house crew) that we use year-round to trim trees 42 within the city. This enables the crews to get completely through the city every 3 - 3 %2 years, 43 which cycle is about standard for the industry. Approximately 500 trees are trimmed or 44 removed each year, which has significantly decreased tree related power outages and associated 45 costs. The current contract with Diamond Tree Experts includes an option for 12-month 46 extensions with a rate increase cap of 4% per year. Diamond has proposed a three-year Page 2 of5 (PC minutes January 28, 2025) 1 extension with a 3% increase the first year (rate per each crew $155.27 per hour), a 3% increase 2 the second year, (hourly rate per each crew $159.93) and a 2% increase the third year ($163.13 3 hourly rate per each crew). This includes all the necessary equipment, personnel gear, hand 4 tools, ropes, and safety equipment to handle all tree trimming and removal projects. Mr. Pearce 5 reported that this proposal from Diamond Trees is a fair proposal, has been reviewed by the 6 Power department staff, City Attorney and City Manager and is recommended for approval. 7 8 Councilwoman Price-Huish asked how the work was scheduled per the calendar and 9 Mr. Pearce explained that the in-house crew responds to individual "notes" (call-in requests by 10 citizens) and areas scheduled via feeders is done by the two Daimond contract crews. 11 Discussion followed regarding the nature oft the distribution system in Bountiful, compared to 12 other cities ofs similar size. It was pointed out that because a majority of our system is overhead 13 in back yards and a majority oft the where trees are planted, it is difficult to make cost/efficiency 14 comparisons because most other municipalities of similar size have a majority of the 15 distribution system underground in front of the homes. This creates a very significant 16 difference between the tree trimming process and needs. 17 18 Commissioner Becker made a motion to recommend approval ofthe Contract Extension 19 with Diamond Tree Experts, as presented. Councilwoman Price-Huish seconded the motion 20 which carried unanimously. Commissioners Becker, Bell, Irvine, Knight, Pitcher and 21 Summers, and Councilwoman Price-Huish voted "aye". 22 23 (Commissioner Irvine left the meeting at this time). 24 25 NW SUBSTATION STEEL POLE PURCHASE APPROVAL 26 Alan Farnes reviewed that we are in the process of completing a rebuild of the 27 Northwest Substation which is tentatively scheduled to begin in September 2025. We are in 28 the process of bidding out the long-lead items to determine the actual start time for this project. 29 Invitations to bid on two new Steel Poles for the transmission lines were sent to six suppliers 30 and three responded. It is the recommendation of staff to accept the low bid (received via e- 31 mail) from Nello (South Bend, Indiana) in the amount of$89,563. Councilwoman Price-Huish 32 made a motion to recommend approval of the low bid as presented. Commissioner Becker 33 seconded the motion which carried unanimously. Commissioners Becker, Bell, Knight, Pitcher 34 and Summers, and Councilwoman Price-Huish voted "aye". This bid meets the proposed 35 construction schedule as well. 36 37 (Commissioner Irvine returned to the meeting at this time). 38 39 NW SUBSTATION CAPACITOR BANK PURCHASE APPROVAL 40 Alan Farnes presented the request for approval to purchase a 1200 KVAR Metal 41 Enclosed pad mounted Capacitor Bank, which is another long lead item included in the rebuild 42 ofthe NW substation. Invitations to bid were sent out to six manufacturers and three responded; 43 however, the bid from Anixter did not meet bid specifications. The other two bids were 44 reviewed by the Power Department staff and the City Manager. He also noted that we have 45 experience with the Controllix products, with 4 Controllix capacitor banks currently on our 46 system. Staff recommends approval of the low bid from Controllix Corporation, a division of Page 3 of5 (PC minutes January 28, 2025) 1 Virginia Transformer, for the 1200 KVAR Capacitor Bank for the sum of $103,272.00 with a 2 delivery of30-34 weeks. Commissioner Pitcher made a motion to support the Power department 3 staffi in recommending approval oft this purchase. Commissioner Knight seconded the motion 4 and voting was unanimous. Commissioners Becker, Bell, Irvine, Knight, Pitcher and Summers, 5 and Councilwoman Price-Huish voted "aye' * . 6 7 WAREHOUSE BUILDING ROOF REPAIR APPROVAL 8 Mr. Veigel reported that the warehouse roof over the truck bay and inventory area has 9 been leaking over the past several years and has been repaired or patched several times, but 10 with no success. The current roof was installed about 45 years ago and needs to be replaced. 11 An invitation to bid was sent to three major roofing companies and all responded. Evaluated 12 on both the purchase price and warranty, it is the recommendation of staff to approve the low 13 bid from Superior Roofing for the sum of $80,201.00, with a warranty of 20 years. 14 Commissioner Bell motioned to support the recommendation from staff. Councilwoman Price- 15 Huish seconded the motion and voting was unanimous. The current budget includes $100,000 16 to perform these repairs. 17 18 2025 CALENDAR 19 Mr. Johnson explained that the February meeting ofthe Power Commission is scheduled 20 on the 3rd week (2/18/2025). However, due to the meeting schedule OfUAMPS (2/18/2025), it 21 would be best to move the Power Commission back to the 4th week (2/25/2025) to allow for 22 him to attend the UAMPS meeting. Commissioner Knight made a motion to re-schedule the 23 February Power Commission to February 25, 2025 (4th week, > Tuesday). Commissioner Irvine 24 seconded the motion which carried unanimously. Commissioners Becker, Bell, Irvine, Knight, 25 Pitcher and Summers, and Councilwoman Price-Huish voted "aye' " 26 27 RESOURCE UPDATE 28 Mr. Johnson reported that at the last UAMPS meeting, it was decided for UAMPS to 29 meet every other month, instead ofmonthly. This will: result in him reporting back to the Power 30 Commission with a Resource Update every other month, not monthly. He then thanked the 31 Commission for their action in supporting the Power County Idaho Power Project (base 32 loading) and the Millard County Utah gas-fired peaking project. He said that Logan municipal 33 power has voted to not participate in the Idaho project contract; however, they may still 34 participate if the subscription level is changed. The Millard project was moving forward, but 35 has not yet acquired property and the project is delayed. A realtor is working with them in an 36 effort to find the land. 37 38 In response to a question from Commissioner Irvine, Mr. Johnson said Energy Solutions 39 is in the preliminary process of developing a nuclear plant on the IPP footprint. Pacificorp is 40 also looking at nuclear development. The involvement ofState government in power resources 41 is speculative at this point, but is driven by the possibility of bringing data centers to Utah, 42 which require a large energy load. Further discussion focused on the possibilities of nuclear 43 energy as a resource, as well as geothermal. 44 45 46 The following items were included in the packet, but not discussed in the meeting. Page 4 of5 (PC minutes. January 28, 2025) 1 I 2 POWER SYSTEM OPERATION REPORT 3 a. October-November Resource Reports 4 b. December 2024 Lost Time/Safety Reports 5 C. December 2024 Public Relation Reports 6 d. November 2024 Outage Reports 7 8 OTHER BUSINESS 9 None 10 11 NEXT POWER COMMISSION MEETING 12 The next meeting of the Power Commission will be held on February 25, 2025 at 8:00 13 a.m. 14 15 ADJOURN 16 The meeting adjourned at 9:20 a.m. on a motion made by Commissioner Irvine and 17 seconded by Commissioner Pitcher. Commissioners Becker, Bell, Irvine, Knight, Pitcher and 18 Summers, and Councilwoman Price-Huish voted "aye 1 19 20 21 22 Lu - AG Dummus 23 Paul Summers, Chairman Page 5 of5