2 3 4 5 6 7  MINUTES OF THE MEETING BOUNTIFUL CITY POWER COMMISSION January 23, 2024-8 8:00 a.m. Those in Attendance  OFTHE  8 Power Commission 9 Paul C. Summers, Chairman 10 Susan Becker, Commissioner 11 Dan Bell, Commissioner 12 David Irvine, Commissioner 13 John Marc Knight, Commissioner (Zoom) 14 Jed Pitcher, Commissioner 15 Cecilee Price-Huish, Councilwoman (Zoom)  Power Department Allen Johnson, Director Alan Farnes David Farnes Tyrone Hansen Jess Pearce Luke Veigel Recording Secretary Nancy T.. Lawrence  16 17 Visitors 18 Gary Davis, City Resident 19 Ron Mortensen, City Resident 20 21 WELCOME 22 24 attendance via Zoom. 25 26 29 31  Chairman Summers called the meeting to order at 8:00 a.m. and welcomed those in  23 attendance. He noted that Commissioner Knight and Councilwoman Price-Huish are in  Chairman Summers welcomed Councilwoman Price-Huish as the newly appointed City  27 Council representative and noted that Commissioner Irvine has graciously accepted another 28 four-year term on the Power Commission. The invocation was offered by Commissioner Bell.  30 MINUTES- November: 21,2023  Minutes of the regular meeting ofthe Bountiful Power Commission held November 21,  32 2023, were presented, and unanimously approved as written on a motion made by 33 Commissioner Pitcher and seconded by Commissioner Irvine. Commissioners Becker, Bell, 34 Irvine, Knight, Pitcher and Summers, and Councilwoman Price-Huish voted "aye".  35 37  36 ELECTION FOR CHAIRMAN- VICE CHAIRMAN  Chairman Summers explained that at the beginning of a new year, it is policy for the  38 Power Commission to elect a chairman and vice-chairman and he opened the floor for 39 nominations for chairman. Following a short discussion, Commissioner Pitcher made ai motion 40 tore-elect Paul Summers as Chairman and Susan Becker as Vice-chairman. Commissioner Bell 41 seconded the motion and voting was unanimous. Commissioners Becker, Bell, Irvine, Knight,  42 Pitcher and Summers, and Councilwoman Price-Huish voted "aye". 44 BUDGET REPORT-YEARTODATESMONTHL PERIOD  43 45  Mr. Hansen presented as summarized Budget Report fort the Fiscal Year-to-date 5-Month  46 period ending November 30, 2023. Total revenues Year-to-Date were $15,238,195, below its  Page 1 of4    (PCI minutes. January 23, 2024)  HAB by ($204,505). Major Items above their HABs included Air Products, at $56,287, with 2 an average load factor of71.1 % for the year-to-date period; Sundry Revenues was above by 3 $32,148; and Interest Income on Investments was above its HAB by $100,712. Revenues 4 (below) their HABs included Electric Metered Sales, ($128,868), below its HAB by 0.9%; and 5 Contribution in aid to Construction, at ($270,194), which included three-line extensions and  6 $10K for Utopia Huts.  7 8  Total Operating Expenses, YTD, were $12,741,374, below the HAB by $1,086,719.  9 Major items (above) budget were Transformer Expense at ($14,490); Substation Expense at 10 ($12,667); Credit Card Merchant Fees, at ($16,707); and Insurance Expense at ($35,023). 11 Expenses below budget included Power Cost Expense at $769,138. Power Generation was 12 $337,000 under, with a major factor being hedging on gas purchases and being able to use the 13 plant generation rather than buying off the market. Power Resources were also below budget 14 by $432,000, largely duet to the CRSPI resource being available. Street Light Expense was below 15 its HAB by $107,661; Meters Expense was below the HAB at $62,785; and Computer Expense  16 was below its HAB at $29,960.  17 18  Total Capital Expenditures YTD were $326,392 and included $28,000 for 2055 South  19 Main Townhomes, $197,000 fora a cable puller, and $98,000 foras service truck. Commissioner 20 Pitcher asked how much of the revenue was a result of the rate increase. Mr. Hansen said that 21 the 15 percent increase generated $3 million for the year and we are at 5/12 ofthe year. 24 paid in the YTD period), 36.7% or $1,947,329 oft the TL&B could have been spent; the actual  22 23 26 27  Totall Labor and Benefits was $1,894,014. AsofNovember) 11,2023 (the last pay period  25 TL&B was $53,315 below that target.  The Net Margin for the YTD was $2,170,429. Total Cash & Cash Equivalents were a  28 net $18,875,639 at month end, up $2,428,675 from $16,446,965 at 30 June 2023, and 29 $2,429,639 above the $16,446,000 total reserved cash requirement. Major sources and (uses) 30 of cash at month end compared to fiscal year-end 2023 included the net margin YTD of 31 $2,170,429; $1,014,804 decrease in total accounts receivable; decrease of $37,571 in total  32 inventories; and a decrease of($123,931)in total accounts payable.  33 34  A question was raised about whether capital projects were being put off for budgetary  35 reasons. Mr. Johnson said "no" and he explained that timing, and the inability to purchase 36 materials, account for the delay of these projects. Commissioner Summers noted that the 37 additional crew which was requested in the budget was not funded. Mr. Johnson said that we 38 are attempting to get that item in the next budget year (July 2024 to. July 2025). Commissioner 39 Bell made a motion to accept the budget report. Commissioner Pitcher seconded the motion 40 and voting was unanimous. Commissioners Bell, Becker, Irvine, Knight, Pitcher and Summers,  41 and Councilwoman Price-Huish voted "aye". 43 DEPARTMENT FINANCIALI UPDATE  42 44  In response to a request from the Commissioners, Mr. Hansen presented a review of  45 financial policies which are used as a framework to guide the department inj providing reliable, 46 cost-effective electrical service to Bountiful. A lack of policies, he noted, results in operating  Page 2 of4    (PCI minutes. Jamuary 23, 2024)  1 atal loss, spending down cash, foregoing capital investment, and system aging. Good financial 2 planning can be deterred by a lack of employees with specialized knowledge and volatility in 3 the market. He said that fear of public backlash for increases, and the impact ofr rate increases 4 on low income and senior citizens can be al hindrance to good financial planning.  5 6  Areas forimprovement that APPA has focused on include the regulari transferofrevenue  7 tot the City. This practice (made possible via the City-owned utility)providesi revenue otherwise 8 generated by taxes and using a fixed percentage (10 percent) allows for ease in budgeting and 9 establishment ofrates. Having a minimum cash reserve policy, as adopted by the City Council, 10 establishes minimum balances of unrestricted net position in each oft the enterprise funds. The 11 policy established two levels ofminimum unrestricted net position in each fund. The first level 12 is calculated as six months of current operating expenses, and the second level is a capital 13 reserve calculated as one year of average capital expenses. He noted that this fund has been 14 drawn down (though still overt the required balance) but that additional funds (S1.5-S2Mneed  15 to bej put into cash.  16 17  A Capital Asset Management plan was defined, based on project prioritization, overall  18 cost ofeach project, funding sources, operational andi maintenance costs for each project,project 19 timelines, any revenues fromi thej project, and the need tor regularly updated. By using the capital 20 plan, capital and operating budgets can be used more effectively, cash reserves can be based on 21 critical order ofr replacement, ratepayers are more easily given information, and opportunities to  22 take advantage of grant programs are facilitated.  23 24  Mr. Hansen reviewed a table showing the 10-Year capital plan (2024 - 2033). This  25 provided a concise, clear picture of the capital needs/priorities which are included during the 26 annual budgeting process. The implementation ofrate increases was discussed, and it was noted 27 that this process is more effective when based on regular power cost adjustments versus a desire 28 to provide the "lowest" rate when compared with commercial, private utilities. Areas of 29 planning which could be improved (as noted by APPA) include metering and billing integration 30 (which is al benefit to both the department and the users) and implementing an impact fee when 31 line extensions are needed. Discussion followed with the Commissioners affirming the need 32 for regular rate increases to offset power costs beyond the control ofthe City.  33 35  34 2024CALENDAR  Mr. Johnson referred to the 2024 Power Commission schedule which was previously  36 approved and noted that the joint meeting between the City Council and Power Commission 37 has been rescheduled from April 16, 2024 to April 23, 2024. This change was made to  38 accommodate the Council's budget preparation schedule.  39 41  40 RESOURCEUPDATE  Mr. Johnson briefly reviewed the status of resources we are currently using and/or are  42 following for possible future use. Ofmajor conçern is the IPP project and the political issues 43 facing the IPP Renewed project. Commissioner Becker referred to an article in the Salt Lake 44 Tribune (authored by Commissioner Irvine) and thanked him for this timely contribution. 45 Discussion focused on the critical need for the City to bei involved int the legislative process.  46  Page3of4    (PCI minutes. January 23, 2024)  1 Thej following items were included in the packet, but not discussed. in the meeting.  2 4 5 6 7 8 10  3 POWER SYSTEMS OPERATIONS: REPORT  a. October-Noyember: 2023 Resource Reports b. December 2023 Lost' Time/Safety Reports c. December 2023 Public Relation Reports d. October-November: 2023 Outage Reports  9 OTHER BUSINESS  Mr.. Johnson referred to the APPA national conference which will be held in San Diego  11 June 9-12, 2024 and said that we need to make hotel reservations early. He requested that the 12 Commissioners let him know as soon as possible if they are planning to go. Commissioners 13 Bell and Summers confirmed their attendance; others said they will get back to him.  14 16 17 a.m. 18 19 ADJOURN 20 23 24 25 26 27  15 NEXTE FOWERCOMMESION  The next meeting oft the Power Commission will be held on February 20, 2024 at 8:00  The meeting adjourned at 10:00 a.m. on a motion by Commissioner Pitcher and  21 seconded by Commissioner Becker. Voting was unanimous with Commissioners Becker, Bell, 22 Irvine, Knight, Pitcher and Summers, and Councilwoman Price-Huish voting "aye".  Paul C. Summers, CHAIRMAN  GR  Page 4of4