MINUTES OF THE REGULAR MEETING OF THE BOUNTIFUL CITY POWER COMMISSION October 27, 2020- - 8:00 a.m. Those in Attendance  2 3 4 5 6  7 Power Commission 8 Jed Pitcher, Chairman 9 Susan Becker* 10 Dan Bell* 11 John Cushing* 13 David Irvine 14 Paul Summers 15 16 City Administration 17 Clint Drake, City Attorney* 18 20 19 guidelines and restrictions. 21 22 WELCOME 23 25 invocation. 26 28  Power Department Allen Johnson, Director Jay Christensen* Alan Farnes* Jess Pearce* Luke Veigel* Recording Secretary Nancy Lawrence  12 Richard Higginson, City Council Rep.  19 *Attended electronically via Zoom, Meeting #942 50125426 in conformance with COVID-  Chairman Pitcher called the meeting to order at 8:00 a.m., Allen Johnson took roll  24 call, and Chairman Pitcher welcomed those in attendance. Mr. Christensen offered the  27 MINUTES-SEPTEMBER 22, 2020  Minutes of the Regular Meeting of the Bountiful Power Commission held September  29 22, 2020 were presented and following al brief discussion on the status ofaj proposal for a 30 one-time bonus for the employees who participated in the windstorm repairs, the minutes 31 were unanimously approved as written on ar motion made by Commissioner Summers and 32 seconded by Councilman Higginson. Commissioners Becker, Bell, Cushing, Irvine, Pitcher 35 BUDGET REPORT - YEARTODATEZMONTI PERIOD ENDED31 AUGUST 38 to thei independent audit not yet being completed. The Fiscal Year-to-Date 2-Month Period 39 Ended 31 August 2020 is preliminary, but only missing the interest income on rate 40 stabilization (which is not expected to materially affect the net margin).  33 and Summers, and Councilman Higginson voted "aye".  34 36 2020 37  Mr. Christensen reported that the Fiscal Year 2020 Budget Report is not yet final due  41 42  The 2010 Bond will be paid off1 by November 9, 2020. On November 1, 2010 the  43 $720,000.00 annual principal payment will be made and the $253,708.75 semi-annual 44 interest payment will be made. The remaining balance ($8,630,000) will be paid on 45 November 9, 2020. (A3 30-day notice was required in order toj pay the bond off, thus the  46 second payment on November 9, 2020).  Page 1of6    (PC minutes October. 27, 2020)  1 2  Total revenues YTD were $6,271,787, above its historically allocated budget (HAB)  3 by $137,039. Major items above budget were: Electric Metered Sales, above its HAB by 4 $72,078 or 1.3%; Street Light Income, above its HAB by $31,162 due to the billing delay in 5 ap prior year; and Interest Income, above its HAB by $41,747 because of FYE adjustments. Contribution in Aid to Construction was below its HAB by $(13,877) with the only major  7 item being Deseret First Credit Union at $27,304.  8 9  Total Operating Expenses YTD were $4,872,051, below its HAB by $444,604. The  10 major item (above) budget was the transfer to the general fund expense, above its HAB by 11 $(17,575) with higher electric metered sales. Major items below their budgets included: 12 Power Cost Expense, below its HAB by $306,440 with lower EMS plus careful purchasing 13 and scheduling of power resources; Hydro Transmission Expense, below its HAB by 14 $20,662 with the only expense being the insurance payment; Transformers Expense, below 15 its HAB by $32,268; and Computer Expense, below its HAB by $51,312 due to budgeted  16 items having not yet been done.  17 18 20 21  Total Capital Expenditures YTD were $167,999, which included $121,968 for feeder Total Labor & Benefits (TL&B) Expense YTD (included in Operating Expenses and  19 #575,$26,371 for the Renaissance Center, and $15,204 for the 400 North pump.  22 Capital Expenditures YTD presented above) was $600,405. Asof22 August 2020 (the last 23 pay period paid in the YTD period), 14.5% or $683,837 oft the TL&B could have been spent;  24 the actual TL&B was $83,432 below that target.  25 26.  The Net Margin YTD was $1,231,737 with the low power costs. This is expected to  27 be materially reduced in future months as a result of the September 2020 wind storm and a 28 true up of power costs. Mr. Christensen noted that power costs are aligning with the right  29 month in the current reporting procedure.  30 31  A short discussion followed regarding costs associated with the wind storm and it  32 was estimated that total additional costs (including 3rd party contractors) would be around 33 $700,000.00. Application for assistance from FEMA has been filed (via the City to the 34 County, and then the County to the State). However, at this time we are: not aware ofthe  35 amount of assistance that might come from this application.  36 37  Commissioner Irvine made ai motion to accept the Budget Report as presented by  38 Mr. Christensen. Commissioner Summers seconded the motion, which carried unanimously 39 with Commissioners Becker, Bell, Cushing, Irvine, Pitcher, and Summers and Councilman  40 Higginson voting "aye".  41 43  42 TRANSFORMER BID APPROVAL  Mr. Veigel reported that the inventory of pad mount transformers is running low, and  44 we: need toj purchase some to replenish it. Requests for bids were sent to two 45 litrhuton/mamufhacturers and it is the recommendation of staff to award the bid to Anixter  46 Power Solutions for GE/Prolec transformers, as follows:  Page 2 of6    (PC minutes Ociober. 27, 2020)  20 (ea) 50KVA: single phase Pad mount 1 (ea) 75KVA three phase Pad mount 2 (ea) 150KVA three phase Pad mount  2 3 4 5  He noted that not only Was this the low bid, but it also provided the quickest  6 delivery. He said these transformers will be purchased and placed into inventory until 7 needed. This is a budgeted item. Commissioner Irvine made a motion to recommend 8 approval of this purchase to the City Council; Councilman Higginson seconded the motion 9 and voting was unanimous. Commissioners Becker, Bell, Cushing, Irvine, Pitcher and  10 Summers, and Councilman Higginson voted "aye". 12 RCAARCHITECTURALAPPROVAL  11 13  Alan Farnes reviewed that we have been working with JRCA Architects to produce a  14 design, cost estimate, and project schedule for the development oft the property to the north 15 ofthis office/warehouse at 198 South 200 West. The total project cost is estimated to be 16 $1,441,000 and includes the architectural and engineering cost of $77,837. We are planning 17 to start construction in the spring of2021 and anticipate a construction period of5 to 6 18 months. Mr. Farnes noted that the 2020-21 fiscal budget includes $1,100,000 for the project 19 and funding for the completion oft the project will bei included ini the 2021-2022 fiscal budget  20 year. 21 22  The City Manager and Power Department staff] have reviewed the proposal from  23 JRCAArchitects to provide professional ngineringarehtctural services at a cost of 24 $77,837 and recommend that this proposal be approved. Following a brief discussion, 25 Commissioner Summers motioned to recommend approval ofthis proposal to the City 26 Council, as presented. Commissioner Irvine seconded the motion and voting was 27 unanimous. Commissioners Becker, Bell, Cushing, Irvine, Pitcher, and Summers and  28 Councilman Higginson voted "aye". 30 EAST WIND EVENTUPDATE  29 31  Mr. Pearce recapped the events of the recent wind storm, noting that restoration of  32 power is complete, except two minor projects. In the process ofrestoring power to all 33 residents, 54 poles were replaced. Twelve oft the poles that were replaced had been rejects 34 from the pole test done by Osmose last year. He pointed out that over a ten-year period, the 35 average number of poles replaced in ay year is 112 (compared to 54 done in approximately 36 one week following the wind storm). In response to a question from the group, Mr. Pearce 37 said that the poles that were braced by Osmose at the time oftesting did not fail in the wind. 40 and hundreds (ifnot in the thousand range) oftree issues were resolved safely. Mr. Pearce 41 pointed out that when large trees, full ofleaves, fall over power lines they constitute a very 42 dangerous work environment. We had only two minor injuries for the entire restoration  38 39  Approximately 9,000 feet of cable was installed or replaced due to wind damage;  43 period - acut hand and ai rolled ankle.  44  Page 3 of6    (PC minutes October 27, 2020)  1 4 5  The request tol FEMA for financial assistance was previously discussed, but Mr.  2 Pearce added that Bountiful City as a whole submitted a cost of$1,451,640 for 3 reimbursement to the county to submit to FEMA via the State.  Commissioner Irvine asked ift the suggestion for additional compensation for the  6 crews who worked long, difficult shifts had been made to the Council. Councilman 7 Higginson said that this matter has been discussed by the Council and additional 8 compensation will be given -1 the amount has not yet been determined.  9 11  10 FUTURE RESOURCE PROJECTS  Mr. Johnson reported that another solar resource project (61 MWs) is being  12 considered. The project, with a 25-year Power Purchase Agreement (PPA), is located in 13 Box Elder County and is being developed by Steel Company. Although it is further north 14 than the solar project previously considered near Beaver, it has tracking capability which 15 would increase its active generation period. The cost would be under $32 per mega watt 16 hour (MWH) with no escalation. Mr. Johnson said this would be a good project and would 17 help to fill the gap: forl high load power options when we will lose the San Juan resource. 18 Commissioner Becker spoke favorably about the limited liability company developing this 19 project (Steel) and it was the consensus oft the group to give a positive nod toj participating in  20 it. 21 22  Mr. Johnson reported that he has signed a non-binding letter ofintent with FERVO  23 Energy - a geo-thermal project in Central Utah which will produce at a cost of 24 approximately $60/kw. This would be a base load resource and would count toward green 25 options in our resources. We currently have no geo-thermal resources, but it was noted that 26 due to the chemicals ini the steam, equipment can be damaged and need repairs that other 27 resources do not require, which makes it somewhat less desirable. This is a 20-year PPA  28 project. 29 30  The company Enchant is considering to continue running the San Juan project and  31 this might give us continued options. This would be a 5MW: resource at a cost of 32 approximately $34 MWH for 13 years. The plant would still burn coal, but would capture  33 the CO and funnel it out to use ini the oil fields. 35 UAMPS CARBON FREE PROJECT  34 36  The UAMPS Carbon Free nuclear project in Idaho is still considered to be a good  37 project and would provide a long-term power source: for Bountiful. However, the financial 38 commitment Bountiful would need to make to participate is concerning due to under- 39 subscription from other entities and the escalation of costs that would fall to subscribers. The 40 withdrawalreduction or increasing period for the project has been extended to October 31, 41 2020 and we will need to make a decision by that time whether or not we stay in the project. 44 noting that the JUMP? program has been eliminated which reduces the entitlement shares by 45 60 MWs. UAMPS has received a $1.35 billion grant from the Department of Energy 46 (DOE), to be funded over a 10-year period to help with the first ofal kind costs.  42 43  Mr. Johnson thoroughly reviewed the current position OfUAMPS in this project,  Page 4 of6    (PC minutes October. 27, 2020)  Subscription levels were discussed, and it was noted that several of the cities in Utah have 2 either withdrawn from the project, or have indicated that they wiil be withdrawing. This 3 leaves Bountiful with al higher subscription percentage, and thus higher financial  4 responsibility. 5 6  Discussion focused on the possibility ofthe project being "put on hold" for a year to  7 provide for additional getting additional subscribers; however, the DOE grant requires is 8 conditional on the project moving forward. Inasmuch as Bountiful's financial commitment 9 would be extremely high, and with risks involved, it was the consensus oft the group that the 10 City is not in the business ofrisk-funding. It was also noted, that ifE Bountiful were to drop 11 out oft the project at this time, it would not be shutting the door to future opportunities to 12 participate if financial risks are lessened. Mr. Johnson reviewed additional off-ramps and 13 the ramifications ifB BCL&P were to continue toj participate, as well as the Development Cost 14 Recovery Agreement that UAMPS will be committed to. He said we need a final decision 15 to give to the City Council on October 27th regarding our continuance in this project. 18 RESOLUTION AUTHORIZING AND APPROVING AN INCREASE OR DECREASE IN THE 19 PARTICIPANT's DEVELOPMENT COST SHARE UNDER' THE CARBON FREE POWER PROJECT 20 POWER SALES CONTRACT FOR THE REMAINING 1ST PHASE OF THEI LICENSING PERIOD FOR 21 THE CARBON FREEI POWER PROJECT; ANDI RELATED MATTERS. Approval oft this resolution 22 would allow Bountiful to drop out oft the CFPP project. Commissioner Irvine motioned that 23 the Power Commission recommend for the City Council to approve this resolution, and with 24 the caveat that the Council be apprised that the Power Commission fully supports the 25 nuclear project as a resource, but has concerns about the City being a risk funder. 26 Commissioner Summers seconded the motion which carried unanimously. Commissioners 27 Becker, Bell, Cushing, Irvine, Pitcher and Summers and Councilman Higginson voted 30 Thefollowing items were included in the packet, but not discussed in the meeting:  16 17  Itis the recommendation of staff to approve Resolution #2020-15 entitled. A  28 "aye". 29 31 33 34 35 36 37 38 39 40 42  32 POWER SYSTEMS OPERATIONS REPORT  a. August 2020 Resource Reports b. September 2020 Lost Time/Safety Report C. September 2020 Public Relations Report d. August 2020 Outage Reports  41 OTHER BUSINESS  Councilman Higginson clarified that the group might be hearing from Mr. Johnson  43 on an individual basis regarding the Steel solar project and the need to approve PPMI before 44 the November Power Commission meeting. Mr. Johnson said he would send al letter  45 regarding our possible participation.  46  Page 5 of6    (PC minutes October 27, 2020)  1 2 4 6 the meeting. 7 8 ADJOURN 9  3 NEXT POWER COMMISSION  The next meeting oft the Power Commission meeting is scheduled for November 17,  5 2020. Depending on conditions oft the pandemic, Allen Johnson will confirm the format of  The meeting adjourned at 9:30 a.m. on ai motion made by Commissioner Summers  10 and seconded by Councilman Higginson. Voting was unanimous with Commissioners 11 Becker, Bell, Cushing, Irvine, Pitcher, and Summers, and Councilman Higginson voting  12 "aye". 13 14 15 16  Jed Pitcher, CHAIRMAN  C  Page 6 of6