(Minutes ofJoint Meeting of Power Commission/Counceil. Power Committee. April 23, 2024)  1 2 3 4 5 6 7  MINUTES OF THE JOINT MEETING OF BOUNTIFUL CITY COUNCIL POWER COMMITTEE AND THE BOUNTIFUL CITY POWER COMISSION  April 23, 2024- - 8:00 a.m. Those in Attendance  8 Power Commission 9 Paul C. Summers, Chairman 10 Susan Becker, Commissioner 11 Dan Bell, Commissioner 12 David Irvine, Commissioner - via Zoom 13 John Marc Knight, Commissioner 14 Jed Pitcher, Commissioner 15 Cecilee Price-Huish, Councilwoman 17 City Council Power Committee 18 Kendalyn Harris, Mayor 19 Cecilee Price-Huish, Councilwoman 20 Richard Higginson, Councilman 22 Other City Officials 23 Kate Bradshaw, Councilwoman 24 Gary Hill, City Manager 25 Galen Rasmussen, Assistant City Manager 26 Jessica Sims, Human Resources Director 27 Charles Benson, Street Department  Power Department Allen Johnson, Director Tyrone Hansen, Accountant Jess Pearce, Superintendent of Operations Luke Veigel, Engineer Alan Farnes, Generation Superintendent Nancy Lawrence, Recording Secretary  16  Other Visitors Ron Mortensen, City Resident  21  28  29 WELCOME  30 Chairman Summers called the meeting to order at 8:00 a.m. and welcomed those in attendance. The  31 invocation was offered by Alan Farnes. 33 BUDGET PRESENTATION  32  34 The meeting was turned over to Allen Johnson, Light & Power Department Director, and the 35 department stafft to present the detailed budget for the Light & Power fund. Tyrone Hansen, Light & 36 Power Department Accountant, was asked to review key points oft the power system and budget 37 request via PowerPoint presentation. Budget highlights for Fiscal Year 2024-2025 were presented as  38 follows: 39 40 41 42 43 44 45  Overall budget for adoption of $39,556,787 5% increase inj power rates 5% increase in the Feed-in-Tariff rate Solar Net Metering buy back rate reduced to $0.075 Annual Pole attachment fee increased from $13 to $14 Customer Service Policies update  Page 1 Lof6    (Minutes of. Joint Meeting of Power Commission/Councl, Power Committee. April2 23, 2024)  1 2 3 4 6 7 8 9 10 11 13 14 15 16 17 18 19 21 22 23 24 25 27 28 29 30 31 32 34 35 36 37 38 39 40 41 42 43 44  Proposed addition ofa 3-person line crew  Services arej provided to 17,300 total customers (15,652 residential; 1,647 commercial; 1  industrial) 6substations  5 The electrical system includes:  42 miles of 46KV transmission lines 90: miles of1 15KV overhead distribution lines 135 miles of 15KV underground distribution lines 75: miles of street light circuits  12 Power resources include:  Colorado River Storage Project (CRSP) Intermountain Power Project (IPP) Natural gas fired central power plant Red Mesa & Steel solar projects Contracts with industry suppliers  Hydro Electric plants at Echo and Pineview Reservoirs  20 Major Roles and Critical Functions were outlined as follows:  Ensure the safety ofeveryone that interacts with the electrical system. Deliver electricity to residential, commercial, and industrial customers.  Buy and generate electricity at economical prices.  Provide reliable electric service.  26 Items needed to fulfill major roles and critical functions:  Upgrade feeders #572, #573, #574 and #576. Begin replacement and upgrade ofHydro control systems. Begin a rebuild oft the Northwest Substation.  Acquire power resources to stabilize the cost of power and increase "Green" and carbon free  resources.  33 Jess Pearce provided information on field operations for the department:  The department has had over six years of no lost work time due to accidents and has received The five-year average system reliability rate for the Power department is 0.9999992%. Since the year 2000, the department staffl has replaced total of2,257 distribution poles ofa total 4,938 poles ini the system. This averages to 125 poles replaced per year (ifthey year 2020 is excluded due to the windstorm which resulted in additional pole damage that needed Remaining poles in the system are approximately 50 years old and all need replacement. The underground system for the department is comprised of1,261,100 feet of cable. This includes 239,122 feet of bare concentric cable that was installed between 1970 and 1986. This bare concentric cable has a life expectancy of only 20 years and is increasingly in need of  awards for their safety record.  replacement over and above the average).  Page 20 of6    (Minutes of Joint Meeting of Power CommissionCouneil. Power Committee. April 23, 2024)  1 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 20 follows: 21 22 23 25 26  replacement. Newer,jacketed, cable is being installed now at an average rate of 18,000 feet The tree trimming program isi inclusive of one in-house crew and two contracted crews that are employed to mitigate tree growth impacts to system resources. Approximately 3,700 trees Supply chain issues were noted including a 6-to-8-month delay in receiving poles and 36-to-  per year. This jacketed cable has a 40-year life expectancy. are trimmed or removed per year by these crews. 104-week delays in receiving transformers.  9 Luke Veigel provided an overview oft the capital requests for Fiscal Year 2024-2025:  Total capital request is $5,450,000 which is up by $3,115,000 from the current fiscal year.  The request includes the following: $290,000 for vehicles $200,000 for upgrade of] Feeder #573 $260,000 for an intertie of] Feeder #572 to #574 $100,000 for an upgrade ofFeeder #576 $250,000 for distribution at Renaissance Town Center $200,000 for distribution work at four new business locations  19 Alan Farnes provided an overview of capital improvements scheduled for the Hydro locations as  $400,000 for update of controls at the Echo Hydro $750,000 for update of controls at Pineview Hydro $3,000,000 for the Northwest Substation.  24 Other capital improvements included in the request are:  27 Jess Pearce reviewed the request for a one dollar increase in the annual fees for pole attachments. 28 The fee will: rise from $13 to $14 to assist the department in funding additional maintenance and pole 31 Additional discussion was held on the changes proposed in customer service policies for:  29 replacement. 30 32 33 34  Townhomes, condominiums, and any customer with multi-gang meter bases. Battery and electric vehicle definitions and inverter driven systems.  35 Tyrone Hansen presented examples ofhow the electric system load is balanced during two time 36 periods in a typical year and showed a schedule of power costs and metered sales by month. There 37 was also a discussion between management and the commissioners regarding solar power and IPP 40 The proposed rate increase of 5% will result in Bountiful Power being 8.3% higher than Rocky  38 power: resources. 41 Mountain Power rates.  39 42 44 45 46  43 The meeting concluded with a summary oft the budget request which included:  Operating revenue of $34,704,782 Personnel Services costs at $5,979,963 Operations and Maintenance costs at $24,847,551 and  Page 3 of6    (Minutes of Joint Meeting of Power Commission/Counci, Power Committee April 23, 2024)  1 2 3 4 5 6  Anet operating transferi in of $1,077,349  ($3,072,651) transferred out to the General Fund Controls atl Echo and Pineview)  $4,150,000 transferred in from Retained Earning for Capital Projects (NW Sub,  Atotal of $42,145,000 in planned capital expenses in the next 10 years  7 Following the discussions, Power Commission chair Paul Summers called for a motion to approve the 8 Fiscal Year 2024-2025 budget request with all items as outlined. Commissioner Pitcher motioned to 9 approve the budget and Commissioner Bell seconded the motion. All commissioners voted aye. 11 City Council Budget Committee chair Cecilee Price-Huish called for ai motion on the Power Fund 12 budget with all items as presented. The budget was passed with ai motion from Committee member 13 Price-Huish with a second from Committee member Higginson. Voting was unanimous with  10  14 Committee member Price-Huish voting, Higginson, and Harris aye.  15 18  16 Chairman Paul Summers commented that the Safety Award recently given to BCL&P is "worth a lot 19 The budget review portion oft the meeting adjourned at 9:45 a.m. on a motion made by Councilman 20 Higginson and seconded by Councilwoman Price-Huish. Voting was unanimous with all members 23 Chairman Summers resumed the meeting oft the Power Commission and noted that Commissioner  17 ofmoney and we can be really proud of our people".  21 voting "aye". 22 25  24 Dan Bell was excused at this time. 26 MINUTES - March 26, 2024  27 Minutes of the regular meeting oft the Bountiful Power Commission held March 26, 2024, were 28 presented and unanimously approved as written with a motion made by Commissioner Pitcher and 29 seconded by Commissioner Becker. Commissioners Becker, Irvine, Knight, Pitcher, and Summers, 32 Commissioner Pitcher noted that the staffhad done a great job in preparing the budget documentation  30 and Councilwoman Price-Huish voted "aye".  31 34  33 and presentation.  35 BUDGET REPORT- YEAR1 TODATE 8-MONTH PERIOD  36 Mr. Hansen presented a summarized Budget Report for the Fiscal Year-to-date 8-Month period 37 ending February 29, 2024. Total revenues Year-to-Date were $23,189,872, below its HAB by 38 ($604,566). Major items above (below) their HABs were: Electric Metered Sales (EMS) at 39 $(388,739) which was 1.9 % below its HAB; Air Products at $134,209, with an average load factor of 40 66.4%. It was noted that February' 's payment posted in March. Contribution in Aid to Construction 41 at $(262,478) with line extensions at 1227 Lorien Court--$7K, 344 South 500 West--$12K, and 952 42 East 500 South--$10K, and Utopia Huts at $10K. Revenues above budget were Sundry Revenues 43 above HAB by $20,940; and Interest Income above its HAB by $177,440.00. February'si interest 46 Total Operating Expenses YTD were $19,394,125, below its HAB by $1,814,846. Major items 47 below their HABs included Power Cost Expense-$1,320,787,Distribution Expense-$82,690, Street  44 allocation was 88K.  45  Page 4 of6    (Minutes ofJ Joint Meeting of Power Commission/Couneil. Power Committee. April 23,2024)  Light Expense-$65,435, Meters Expense at $97,678, and Transfer to the General Fund Expense at 2 $104,970. Major items (above) budget were Credit Card Merchant fees at $(20,196), and Insurance 5 Total Capital Expenditures YTD were $337,886 and included $28K for 2055 S. Main Townhomes, 7 Total Labor and Benefits Expense YTD was $3,233,162. This was $138,334 below the target (63.6% 8 oft the total Labor and Benefits budget for the last pay period paid in the YTD period). The Net 9 Margin for the YTD period was $3,457,861, as revenues are on budget and power costs are coming in 10 under budget. Total Cash Equivalents were ai net $20,253,601 at month end, up $3,806,637 from 11 June 30, 2023 and $3,807,601 above the $16,446,000 total reserved cash requirement. Major sources 12 and (uses) of cash at month end compared to fiscal year-end 2023 included $3,457,861 Net Margin 13 YTD, decrease ini total accounts receivable $1,141,310, decrease in total inventories $117,062, 14 decrease in total accounts payable ($231,111,5317905) increase in net fixed assets, and $(305,095) 17 Commissioner Pitcher made a motion to accept the financial report as presented. Commissioner 18 Becker seconded the motion which carried unanimously. Commissioners Becker, Irvine, Knight,  3 Expense at $(35,023).  4  6 $197K for a cable puller and $98K for a service truck.  15 decrease in other equity- excluding the net margin.  16  19 Pitcher and Summers, and Councilwoman Price-Huish voted "aye". 21 RESOLUTION 2024-02 PRE-PAYTAX CERTIFICATE 22 AND AGREEMENT WITH UAMPS FIRM POWER SUPPLY 23 This Agenda item was tabled pending action by Rocky Mountain; no action taken.  20  24  25 RESOURCE UPDATE 27 the first ofJune.  26 Mr. Johnson reported that hel has not heard anything re: SB 161 but anticipates hearing something by 29 Gas operation oft the IPP renewed plant is still moving forward, and IPA is working on gas contracts. 30 UAMPS is also looking at two gas resources: Long Roads solar and batteries project near Fremont is 31 estimated to come online in 2026. UAMPS is also looking at a wind project, and the necessary 34 Commissioner Irvine noted that he had seen a "long coal train" and wondered both where it was 35 coming from and its destination. Mr. Johnson gave several possible destinations, including the Inland 36 Port for overseas. He noted that in addition to Wyoming coal, there is also good coal coming from 37 Illinois. He said that we should have enough coal to run us thru the shutdown oft the IPP plant. 39 The focus of discussion turned to the dilemma faced by BCL&P in hiring a third line crew. Mr. 40 Johnson explained that, generally speaking, this process has been that we can hire apprentice linemen, 41 (generally who are not from Davis County), we train them, and then they seek employment closer to 42 their original home. Solutions for that dilemma were discussed, including a contractual required time 43 with BCL&P in exchange for the training, and the possibility of working with high school students 44 from our area who would "bel home" once they are linemen. Wage comparisons with other  28  32 transmission details were discussed.  33  38  45 jurisdictions was also discussed.  46 47  Page 5 of6    (Minutes ofJ Joint Meeting of Power Commission/Councl, Power Committee. April23, 2024)  Thefollowing items were included in the packet, but not discussed in the meeting.  2 4 5 6 7 8 9 OTHER BUSINESS 10 None 11  3 POWER SYSTEMS OPERATIONS REPORT  a. February 2024 Resource Reports b. March 2024 Lost' Time/Safety Reports C. March 2024 Public Relation Reports d. February 2024 Outage Reports  12 NEXT POWER COMMISSION  13 The next meeting oft the Power Commission will be held on May 28, 2024 at 8:00 a.m. 14 Councilwoman Price-Huish requested tol be excused from that meeting.  15 16 ADJOURN  17 The meeting adjourned at 10:25 a.m. on ai motion by Commissioner Pitcher and seconded by 18 Commissioner Becker. Voting was unanimous with Commissioners, Becker, Irvine, Knight, Pitcher  19 and Summers, and Councilwoman Price-Huish voting "aye.  20 21 22 23 24  Beeke  Auorn  Susan Becker, Acting Chairwoman  Page 6 of6