1 2 3 4 5 6  MINUTES OF THE REGULAR MEETING OF THE BOUNTIFUL BOUNTIFUL CITY POWER COMMISSION  August 25, 2020. - 8:00 a.m. Those in Attendance  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 Gary Hill, City Manager 18 Tyson Beck, City Finance Director* 19 20 Visitors 21 Millie Bahr, City Councilwoman 22 Blaine Haacke*  Power Department Allen. Johnson, Director Jay Christensen* Alan Farnes* David Farnes* Jess Pearce* Luke Veigel* Recording Secretary Nancy Lawrence*  12 Richard Higginson, City Council Rep.  23 Ray Ward, Utah State House of Representative, Dist. No. 19  24 27 28 WELCOME 29 31 33  25 *Attended electronically via Zoom, Meeting ID #961.7292.7648, in conformance with  26 COVID-19 guidelines and restrictions.  Chairman Pitcher called the meeting to order at 8:05 a.m., took roll call, and  30 welcomed those in attendance. Councilman Higginson offered the invocation.  32 MINUTES- MAY26, 2020 and JUNE 23,2020  Minutes ofthel Regular Meeting oft the Bountiful Power Commission held June 23,  34 2020 were presented and unanimously approved as written on a motion made by 35 Commissioner Cushing and seconded by Councilman Higginson. Commissioners Becker, 36 Bell, Cushing, Irvine, Pitcher and Summers, and Councilman Higginson voted "aye". The 37 corrected minutes oft the Regular Meeting of the Bountiful Power Commission held May 26, 38 2020 were also included in the packet for perusal and included in this approval. 40 BUDGET REPORT-YEARTODATE 1-MONTH PERIOD ENDED 31JULY2020 42 period ended June 2020 shows an estimated loss of approximately $2,000,000, based on 43 GAAP. This loss is due to unbudgeted expenditures for repairs at the power plant and the 44 Echo hydro. Money was available in Capital contingency to fund these repairs, but,  39 41  Mr. Christensen reported that the Financial Report for the Year-to-date 12 Month  45 according to GAAP, the transaction must be recorded as a loss.  46  Page 1 of4    (PC, minutes. June 23, 2020)  FY 2020-2021 is still very preliminary. In the past, wel have used estimates for  2: power costs (UAMPS), Electric Metered Sales, and Air Products, because current numbers 3 are not available for another 30+ days. We are going to change the reporting process to 4 reflect actual revenues and expenses and those figures lag about 3 to 4 weeks, which puts 5 the reporting process about one month behind. Operating expenses for the month ofJuly 6 look very normal, there is nothing of concern. The budget report for the FY period ended 7 July 31, 2020 will bej presented at the Power Commission meeting next month.  8 10  9 DIRECTIONAL BORING APPROVAL  Mr. Veigel reviewed that Americom Tech, Inc. has been working on several boring  11 conduit projects throughout the City. He said he would like to add three additional bore 12 projects for them to complete and he reviewed those projects (two distribution bores and one 13 streetlight bore). The streetlight portion is $24,683 and will be funded from the streetlight 14 maintenance fund. The distribution portion is $21,630 and will be funded from the 15 distribution accounts. Staffrecommends the approval for Americom Tech, Inc to do the 16 three additional directional drillings in the amount of $46,313. Commissioner Cushing 17 motioned to recommend approval oft the directional boring project(s) for Americom Tech, 18 Inc. as recommended by staff. Commissioner Irvine seconded the motion and voting was 19 unanimous. Commissioners Becker, Bell, Cushing, Irvine, Pitcher, and Summers and  20 Councilman Higginson voted "aye".  21 23  22 VAMPSCARBON FREE PROJECT: DISCUSSION  Mr. Johnson reviewed that for several years we. have been involved with UAMPS  24 and NuScale to develop a Carbon Free Power Project (CFPP) as a zero-carbon emitting 25 power resource option. This project is a small-scale nuclear reactor that will be located in 26 Idaho near Idaho Falls. The Department of Energy (DOE) has been al key partner in the 27 development of the project and currently is paying 50% oft the cost to develop the National  28 Regulatory (NRC) liccnsc application.  29 30  Mr. Johnson reviewed the timeline of BCL&P's involvement with this project and  31 the off-ramps available to the City. The UAMPS board approved ai notice of Conditional 32 Approval of CFPP Budget and Plan ofFinance and we received it on July 16, 2020. This 33 notice is one oft the off-ramps that the City has for the project. The Amended Budget & Plan 34 of Finance for the remainder ofthe first phase is $129,931,556. DOE is anticipated to 35 provide $105 million and NuScale will be providing $5 million. UAMPS share oft this after 36 payment by DOE and NuScale are estimated at $19,933,912. Bountiful City is currently 37 3.2822% oft the project and our estimated costs for the remainder ofthe first phase is an 38 additional $654,271. These funds are anticipated to cover the project through May 2023.  39 There would be two additional off-ramps for the project.  40 41  Ofconcern to Mr. Johnson is the lack ofs subscribers for the project (213 MWof720  42 MW needed). Many of the municipals in Utah are: reducing their subscription or dropping 43 out completely. UAMPS has given BCL&P an extension to September 30, 2020 to notify 44 them of our desire to use the off-ramp. The City will need to meet on September 22, 2020, 45 to leave the project via the off-ramp provision or continue until the next off-ramps  46 opportunity in 2023.  Page 2 of4    (PCminutes. June 23, 2020)  1  UAMPS still needs to finalize the following items: contracts with the DOE, the  2 Development Cost Reimbursement Agreement between UAMPS and NuScale; the 3 Engineering, Procurement and Construction Development Agreement between UAMPS and 4 Fluor Corporation; and finalize the Joint Use Module Project (JUMP).  5 6  The City has three options at this time: (1) pass a resolution to officially increase,  7 decrease, or withdraw from the project; (2) pass ai resolution to withdraw from the. JUMP 8 program; or (3)dor nothing and stay with the project at our current level. Mr. Johnson noted 9 that developing new power resources is critical for the long-term stability and affordability 10 ofBountiful's power system. But the new resources must also be affordable for Bountiful's 11 rate payers. The technology developed by the CFPP is extremely promising, but the 12 financial risks to the City may be too great, particularly as less than 30% oft the project is  13 subscribed currently.  14 15  A lengthy discussion followed regarding this project and the impacts it would have  16 on the City (both in terms of resources and financially). It was the consensus of the group 17 that the project is good, but the concern was lack of subscribers. It was: noted that the IPP 18 resource could be called back toj provide aj portion ofthe firm resource. Mr. Johnson 19 recommended that we delay making a decision until the September 22 meeting sO that we 20 will have final input from DOE, etc. The group concurred with this recommendation. 22 Thef following items were included in the packet, but not discussed ini the meeting:  21 23 25 26 27 28 29 30 31 32 33 35 36 38 40 the meeting. 41 42 ADJOURN 43  24 POWER SYSTEMS OPERATIONS REPORT  a. May-June 2020 Resource Reports b. June & July 2020Lost Time/Safety Report C. June & July 2020 Public Relations Report d., June 2020 Outage Reports  34 OTHER BUSINESS  None.  37 NEXTI POWER COMMISSION  The next meeting oft the Power Commission meeting is scheduled for September 22,  39 2020. Depending on conditions of the pandemic, Allen. Johnson will confirm the format of  The meeting adjourned at 10:07 a.m. on a motion made by Councilman Higginson  44 and seconded by Commissioner Summers. Voting was unanimous with Commissioners 45 Pitcher, Becker, Bell, Cushing, Irvine and Summers, and Councilman Higginson voting  46 "aye".  Page 3of4    (PC minutes. June 23, 2020)  1 2 3  E  Jed] Pitcher, CHAIRMAN  Page 4of4