Cc - Regular Meeting

believe that you worry about what they would like.

I have my funeral planned out the tea and I'm not going to be there. Do whatever you want. Eight here. David coming.

He did. He's just being friendly. Ah, it's really

He's got a nice I think that's a good idea. [laughter] So she had no idea. [laughter] All right, everybody, if we could grab a seat. It is six o'clock and we we're going to go ahead and get started. Uh we'd like to excuse Council Member Jeff who isn't able to make it uh here tonight and and join us. Um he's had uh another engagement. Uh before we get started, uh I just had a suggestion which I think is a good one. the uh conflict of interest training and the our scheduled delegation with our good deed award. Council, could I get your permission to switch to flop those? I mean, I I I know Tate probably would appreciate learning about ethics and and conflict of interest, but probably everybody else would be bored. So,

we could if that's okay, we'll do that. All right. We will begin tonight's meeting February 19th, 2026 by uh welcoming Bishop Nathan Hall of the First Ward uh to offer a thought reading or invocation and then I will lead us in the pledge of allegiance. Bishop Paul, our father in heaven, we are so thankful for this opportunity we have to meet here tonight in these favorable favorable conditions in this wonderful town of Brigham City. We're thankful for the freedoms we enjoy being in this in this town and in this state and in this We're thankful for the moisture we've received and we have to continue to bless us with with that that we can take care of ourselves and our our families at this time watch over this meeting and provide spirit of peace here and a spirit of unity. Yes, thou would bless us with thy guidance and with thy thy hand that we can be led to make correct decisions this council that they may be able to see thy vision for this town and for the community. We have to watch over the the member these uh the citizens of this town that they may be continually watched over by thee that their homes and their families may be safe. We're thankful for all that thou has given us in this life. Say these things in the name of Jesus Christ. Amen.

Amen. Thank you, Bishop Paul. Would you please stand and give the proper salute and join me in the pledge of allegiance? I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Thank you. Please be seated. All right. We would like and we're we're excited to have the American Legion Auxiliary Department of Utah here to present a war an award to an a young man who has done something just commendable in our community. And so we'll turn the time over to the American Legion to present that award. if you'd like to just come up to the podium.

If they want to move around and get pictures. Yeah, you can. Go ahead. Yeah. Whoever whoever would like to take pictures, you're welcome to roam around the room and get whatever angle you'd like.

Thank you, mayor, for allowing us to do this presentation tonight. I'm from the American Legion Auxiliary and one of our children and youth programs is the youth hero and youth good deed award. And we just look everywhere we can in the news and hear it on TV and look on Facebook and all those other fun social media places for um kids in school that either become youth heroes by doing an act of valor or in Tate's case a very good deed. And we have a national award. It's been signed by our National American Legion Auxiliary President and we would like to present Tate tonight with this good deed award. Why we're doing the awards for Tate is because when the government shut down in October, he saw a need and he and his mom started what they called take stand. And it started with hygiene products being available through donations for anyone that needed them and then morphed into coats and blankets and and other items. And she just told me when um we met just a minute ago that he's continued this project through the winter. They've done Christmas deliveries and they've done helping people from Remont Logan clear down to Leighton. So, it's great to see that it just kind of had a grew a life of its own and and Tate very involved in that. Um, I have here with me part of our American Legion family, um, Richard Fischer, who's our alternate national executive committeeman, and Chris Brad, who's the

district one commander, who's this area up here. So, I don't know how we want to do pictures. Looks like Yeah, looks like we're facing over here mostly cameras. So, grab that. There we go. [laughter] I thank you. Let's give him a round of applause.

Kate, I don't know if you wanted to say anything if they're finished, but you're more than welcome to if you'd like to, but you do not have to. Uh, thank you so much. I really appreciate it.

Thank you. [laughter] Let's give him another round. You know, Tate, uh it fits in what what you have started there. uh within Brigham City, the the city staff, city employees. Uh for the past little while, uh I brought I say me, but I I there's a familiar song to a lot of us within the religious our our shared religious community or a lot of us have a shared religious uh community. And I use it as a motto here for the city, Tate, and I think you exemplify this. And uh it goes, do what is right and let the consequence follow. And the consequence, Tate, of you doing something right is setting a good example for the entire committee community. The other consequence of doing something that you feel is right as you've done is it's flipping hard work, isn't it? drive around and and gathering and and coming to boring city councils and and receiving an award that is is well uh worth it and and do to you. So, I just want to thank you for choosing to do something that's right and allowing us to commend you on the consequences that you're now uh uh uh what's the word experiencing. Thank you, Dave. [laughter] Thank you. Thanks for being a part of our community and and thank you for allowing us to be the venue in which you get to be recognized. Thank you again. Let's give him another.

All right. Oh, thank you, Tina. [laughter] Thanks for reaching out. All right. Those that would like to go, you're more than welcome to. What we have next is a uh continuation of our last city council. We had our training on uh internet safety and also on uh the open and public meetings act. This is uh for just like five minutes or so. We're just going to run through conflicts of interest and ethics statement training and we'll turn the time over to our city attorney Nicole Codddle to complete that training for us.

Hey, thank you mayor. And yes, this will be very quick and a continuation of our um annual obligations with regard to training of the city council. As the as the city council's aware, there are several pieces of state law and then also city policy which require disclosures of of all kinds. Utah is a disclosure state when it comes to conflicts of interest. So what that means is if you have if you have a conflict of interest, you disclose that. There are a couple of things that apply to the council a little different than uh the rest of the employees and we'll talk about that just quickly. You as elected officials, as you know, file a disclosure when you when you are running for election and as you're um sworn in. And that disclosure is handled under title 20 of state law. And there's a couple of provisions in our city code that require that as well. that disclosure is different than the disclosures that you make and that the the um city employees make under the municipal employees ethics act. So though they're they're the same but different and they overlap quite a bit. So I know there was some um discussion and question about that as we've refined our forms and made them comply with that state law and make sure that they comply. So just recognize that there are those two. Um, of course, as you know, a conflict of interest is defined by the state by the state um code as a couple of different things, but the most pertinent one is a uh if you uh have a business that is governed by the city. So, if you own a business that gets a business license here in the city, that's to be disclosed. Um if your business is doing business with the city, that's to be disclosed. And that's kind of the kind of the whole of it. and and um those disclosures happen in writing as you know we post those and are required to post those and do that. Um we have great team here at the city that helps facilitate that. In addition, the one other thing we've been asked to do by the state is what we do annually and you've heard um Tom Carter prior as our finance director and our new finance

director I'm sure will do the same talk about fraud risk assessment that we're required to do every year as a as an entity. Part of that fraud risk assessment is asking that each individual employee in the city and each of the elected officials sign what we call a um ethics statement if you will and it's a recommmitment every year to um follow the municipal employees ethics act and to make sure we're um acting ethically. So we have uh facilitated that with our employees and with you. Each year we have training with our employees and with this group and um and make sure that that signature is had and that that reminder is given and um and and we're in compliance with that. So if there are any questions I can I can answer those questions. Otherwise that's that's the whole of our training.

Council, do you have any questions or clarifications on conflicts of interest or ethics? Hopefully not ethics. That's why Jeff isn't here, Frank. No, I'm just kidding. I am just kidding. [laughter] All right. Thank you, Nicole. We'll move on. We have three items on the consent for consent and we would entertain and enjoy a motion to approve consent. So moved. We have a motion by council member Jensen. Do we have a second? Second. Second by council member Hip. Is there any clarifications or questions need to be answered pursuant to the consent items? Who is the appointment as planning commission?

Oh, thank you for bringing that up. It's uh Wayne McConkey has been appointed to uh actually his wife just finished her uh term on planning commission and so the commission suggested that Wayne uh uh served there and he uh he has acquiesced to that and so that is the appointment. Thank you for bringing that up Robin. Uh all those in favor of the motion I I

Any oppose? Doesn't appear to be. Motion passes. Thank you. We uh have several new employees to recognize. First, uh we'll start with our fire departments. We have uh been joined by Aspen Stevens and Carson Maxfield who are firefighter A. I think that letter is AEM, isn't it? AMTS. And then uh we have a new hire in recreation. I just uh participated in a podcast this week on soccer where she was there. Wonderful gal. Hi Ogden as our recreation coordinator. That's a good addition to our recreation staff. We uh this last uh week or so, we have uh it's exciting, but we've been able to shuffle some of our talent here in Brigham City to new uh responsibilities that we're we're completely excited about. They're they're wonderful individuals along with a new hire that I am excited about and everybody that was on the uh the hiring uh committee and the interview committee is excited about too. We uh and so we invite them to uh come up as I as I read their names and we'll have our city recorder I think administer the oath of office. The first one is Tyler Pugsley who has previously been uh for a number of years. our public works director has uh has taken on the task of being our public power director. And then uh Mike Weight uh is going to fill the position moving up uh from assistant public works director to public works director. Mr. Bryce Loft House will assume the role of assistant public works director. And then Mr. Jeff Schmidt, did I say that right? Okay. I don't know why, but in my mind I I I saw a D, not a T. uh will is uh has been is a new hire as our as our financial uh finance director. And so we'd invite these four individuals if you'll come on up here

and Christina will uh administer the oath of office to you and then we'll have you sign those uh while we're up here so we don't forget. And whoever would like to take photos, you are welcome to especially of brides. You can take as many of as you'd like. says employee recognition. [laughter] Are you sure? Good job.

Big att three and a big welcome to Jeff. [laughter]

Yeah. And an attab boy. I don't mean to leave you out, Jeff. [laughter] We are excited about all four of these positions and the direction that we're headed as a city internally and for our citizens. It's uh it's a it's a great day in Brigham City today. So, we're we're thrilled. Bryce, I speak.

Absolutely. [clears throat] [laughter] Um, with me tonight, my woman Janney, my sister Cheryl, my mother Jerry, my sister Amy, and my uh, niece Mia. Oh, I got more back there that I didn't even see. And Rick, Mike, and Carson, Colton. One or the other. Which is it? Colton. [laughter] um [clears throat] 5,933 days ago I started for Brigham City and I had an opportunity to address the council then and so here I am doing it again and when I addressed the council the first time I expressed my I expressed my gratitude for the opportunity and I expressed my excitement to serve the community. I just like to reiterate that and I'm still grateful for the opportunity and looking forward to serve. Thanks.

Thanks, Bryce.

You know that I think you should make Jeff talk. Yes. Jeff, would you like to say something? Go ahead. Pontificate for us. [laughter] Hi, just uh I'll echo what what he said. I am very grateful and humbled at the opportunity to come up to this great city to work. And so, you know, those that I've interacted with um was very impressed. It's clear um it's a it's a great working group up here. It's a great city and I'm just very excited uh to come up here to work with all of you. So, thank you.

Thanks, Jeff. You know, a lot of times people ask me, "What's it like to be mayor?" And and situations like this, I think that uh exemplifies or or is the best description. I feel a lot like a Major League Baseball team manager. My job isn't to hit the ball, make the catches, or or or any of that. My job is to put the best team on the field. And it's nights like tonight that I just really feel like we're fortunate to have the best players on the field. I think we do top to bottom in the city. Uh and we're super fortunate as a city to have five city council members that I think exemplify that same thing. They're tip top. So, thank you for all that you do, you guys, and all that you will be doing. We look forward to working with you and uh counseling with you and deliberating with you and to find the right solutions in the right direction for the city for the future. We will move on now to public comments and that is uh we reserve this time for those that are members of of Brigham City can vote, own property or run for city office within Brigham City. We would we invite you to come to the podium. If you'd like to make a public comment, please state your name and where you live. And we'd love to hear from you for up to three minutes. And so we'll open that up to public comment now. council seeing as how there isn't any unless we were distracted by Bryce that I was as he walked out. But uh we will clo close public comment then and we'll move on to council member comments if there are any. We'd love to give the council an opportunity to to make any comments or any updates to what uh they may have been doing or participating in. We'll start with council member Smith and move

to his left. Thanks, Mayor. Um just a couple quick little things. First of all, welcome to our our new finance director. Look forward to working with you. Um I probably spend way too much time and try need your cell phone number. [laughter] Um and congratulations [clears throat] to everybody else, Tyler and Mike working for this Um I had the opportunity to um attend our Fox County Chamber meeting just this last week. They do have their again their business summit coming up March 20th. Going to be a good event speaker, their main speaker, their keynote speaker is is an uncle of mine. gives a great message. Preston shown up there March 20th and uh went to a water conservancy district meeting last night. Pretty short but learning a lot there. Trying to figure out how that plays off. That's that's all I've got, Mayor. Thank you. All right. Thank you, Council Member Troxel. I've been able to attend the library board meetings the last couple um times and um very impressed with our library board. These are dedicated people that have um spent a lot of time really um caring a lot about um all the things the library has provided for all of us throughout the many years um working on budgets and as I understand that they'll be working with the city in the next month to um get updated on how the budget works. I attended the Bear River drag association of governments meeting today. We um were able to go

over the social service human block grants and um provide some assistance to different nonprofits throughout northern Utah um for their services that they give to the public, which was really nice. on um last week and I got to attend our volunteer banquet that the mayor puts on every year and um it's really inspiring to see the the many many dedicated people that have spent years even since I was a child the same people that have [clears throat] really dedicated themselves to volunteer throughout Brigham City and they're they're still going to do it I think until they can't anymore. And um to give them that honor and appreciation, we were able to have the magical singing that if we could somehow have everybody listen to the magical singing at the academy center, you know, and you want to be inspired by music, just listen to them. Um congratulations to um our shifts in administration. It was exciting to hear how um dedicated our administrative staff has been in making sure that our excellent employees and their education and stepping them throughout and finding their they're really good at certain things and then um them having that security that their best skills will be able to be utilized um while they dedicate themselves to Brigham So all of these changes um are very well earned and um I respect all the the the guys that um have worked for Brigham City and public power and in the

electrical department for and public works for for that. That's it. Thank you, Council Member Choxel. Mayor Pro Tim. Well, I just say a couple weeks ago, I had the chance to go down with the uh youth city council and the the exceptional experience of driving the senior bus down there. That was experience. I had to check multiple times, make sure I was legal. I was, [laughter] but you lose anything.

No, they they gave me the whole story before I started driving of your experience and I had none of those. It all worked out very well. But we spent our time with those young people um getting the opportunity to be around some of our representatives and senators down at the Capitol and it was wonderful to see them and they're an example of what we see in the city. Those young people are basically volunteered to be a part of that program and are very much engaged throughout the community in different capacities much like the young man we saw here who stood alone but he wasn't alone. He had his family with him and a lot of people supporting him as as he's trying to make a difference as one person in a community and and to piggyback on what was said by Robin with regards to volunteers. Uh it was wonderful to see those volunteers and the and the commitment they have and my wife is still giving me a hard time because the mayor challenged us. Mayor Mayor will challenge us sometimes. He challenged us to do nothing and and to listen to a little music and relax every once in a while. Is that about right?

That is okay. call her back and tell her that's what I'm doing. I'm just sitting in my chair thinking. So, I was able to learn something as well. But

congratulations to those of you who are coming on board and the changes that are taking place. We appreciate your commitment to the city and and what you do and the impact you have on the character and the dignity of this community. Thank you, Dave. You guys said I I too went to the volunteer dinner and it's great to see all those volunteers come through. Um, one of them was Kelly Driscoll and I saw him do a presentation on what's going on on the courthouse lawn here for the the county lawn and and putting up a statue to gold store star families and it was great to see him working on his next project. He's one of those ones that always goes from one to the next and his excitement level for something like that to honor those who have given everything was really exciting. And again, this young man Tate who's done great things for the city much better than kids staring at the tablet. So, that's all I've got.

Hey. All right. I don't have much, but I do want to mention uh last week uh Chief Reyes and I went down to Haramman City to present some uh some uh two awards to some deserving officers down there who helped out uh our chief and our department uh through the August 17th and the weeks after uh uh happenings in Boxelder County. It was was fun to see that. I will mention that uh they did have two youths that came and serenated them because it was right around Valentine's Day. So, I thought it would be good that we did the same thing. So, I invited Troy Dalgrren. No, I'm just kidding, Troy. [laughter] But, I thought that was pretty neat. But, uh it was a lot of fun. I enjoyed the uh volunteer dinner. It was it was very moving. The magicals were. And it was fun to see all the tables filled. Um, and that's uh I think that's all that I need to say tonight. So, we'll uh ask our city administrator to ask to uh add any comments and then he can roll right into if he'd like to our first action item, which is the consideration of approval of updates to the power standards manual. Just real quick update on a couple projects for the council and the public. So, um, our pentock replacement project up there, uh, for our two water sources coming out of Manowway still underway. We're expecting that project be completed by about mid-March. Um, so get the switch back over and get our secondary water coming to our generator and and uh, yeah, the the reservoir is full, I heard, today. So, our cup run is over. So, the soon soonest we can get that done, obviously going to help us. We're probably going to end up having to manually spill some water right now out of the reservoir to keep that level um where it needs to be. And I think our meeting on our flood

mitigation starts [clears throat] next week. So, good timing on that. And then uh I think mid mid next week, end of next week, we're going to start pouring the actual bridge cap on the overpass on Forest Street. I don't know exactly what day they're going to start. Thursday, it sounds like starting that. So, we're way excited. We're going to actually see the finishing cap be. Obviously, we still got the parapoot walls. Um, keep traffic where it's supposed to be. Wouldn't that be interesting with no barefoot wall on the bridge? Just kidding. And then, um, maybe just update for the council. So, that the the rigorous portions of our budget start on Tuesday. um with the mayor and and executive staff of the city. So, department heads have got all their requests submitted in and we start going line by line on Tuesday of this next week. So, it's a long process by the time the mayor gives the council the budget in early May.

It is. And and if any of you would like to come and observe or participate in those, we're going from 8:00 a.m. to 5:00 pm Tuesday and Wednesday, correct? and Tuesday, Thursday. And no, it's Tuesday, Wednesday. You are correct. Tuesday and Wednesday.

Yep. So, we if you'd like to come and you have time and can you probably can't because it's tax season, but but if any of you'd like to stay for as much or as little of those or come at all, you're welcome to. Hey, that's all I had. Am I okay to Yeah, you just roll. Okay. So, um, on the first action item is updates to our power standards manual. Um, I'm not going to go into a ton of detail for obvious reasons. A couple things I just do want to highlight is our staff has went through um, this over months and months reviewing any updates the APA or NEC national electrical standards and trying to get us into compliance. And then a lot of it is just frankly some cleanup on just how Brigham City Power does business. Locations of transformer sectionalizers, the locations in our commercial zones, residential zones, um materials use materials used a little bit more detail. Some of this is is going to affect, you know, our our contractors that are doing electrical services um you know to the home, but none of this is within the interior of a home. That's all handled through the building code. Um, this is essentially uh all of the standards of from art equipment, transformers into the meter base that is attached to the side of a home, whether that be underground or overhead and and obviously we've seen a lot of new developments and uh we learn from frankly from things that we want to improve on as a city um with the type of material and how our our transformers are set. So, those are the highlighted um things that I want to go through there. Um if you're not an electrical contractor, you won't care too much about what is in these standards, frankly. So, any questions? Council, any questions?

Did we um finalize or put in there any changes to commercial and solar issues that we had? Yeah, there no. So, this is Okay. Yeah, that that's in city code. Okay. Those Yeah, we don't have anything tabled on that. The council took action on it. We did table it for about a month month or two, but then we took action on it. So, yeah, that these power standards are completely separate from our code that says, you know, renewable or generator customer generator sourcing. That's in a section of city code, not in the public power standards. Okay. All right. Good question.

Thank you. If there aren't any questions, we would uh anticipate a motion to approve or not approve. A motion to approve the update into the power standards manual. We have a motion to approve by council member Toxel. Do we have a second? Second by council member Hip. Uh this does not need to be roll call. So all those in favor? I

doesn't appear to be any opposed. Motion passes. Next we have a consideration of approval of u of the Uamps polling agree pooling pooling agreement. We've invited Mason Baker Uamps is is the CEO Mason CEO to come up and and uh and present because I failed algebra and so we invited [laughter] Mason to explain the pulling agreement to us. So Mason, we'd invite you to the podium and and then Derek can can help us understand as well. We've got a translate. Let's say translate. Translate. We've got a slideshow. Let's get it up. All right.

Um, as Derek's pulling that up, um, again, I'm Mason Baker. Appreciate the opportunity to be with y'all this evening. It's always great to be up here, especially in person. I feel like maybe the last time I presented did have a child intrude on the Zoom call. So, I don't think that's going to happen tonight. Um, with me I do have Jackie Kums who manages our member relations. Um, and again, it is a privilege to serve as the CEO for UAPs. Really enjoy getting out into the communities and being able to hear what's going on here. um is really really important part of our job is understanding what's what is happening in the communities. Um

I'm going to talk No, you're good. Um backup plan not even working either. Okay. It's on my computer too.

Maybe I can just provide a little bit of background on what what is this pooling agreement? Um and at UAMPs we have distinct projects. We have a pool project. So this agreement is the governing contract for our pool project. And when you think about the pool project, it allows the members historically it's functioned to allow the members to um utilize energy amongst themselves. Um because when you think about when a member has their resources that they procure that make up their power portfolios and then act their actual load needs as a city. Um there may be times hours of the day when you know they have more resource than they need. They're able to sell their excess resource to other members. That's all been facilitated historically through our pool project. Um, we are about to transition in the wholesale electric market in the west into a very different market structure and that's a driving force in this amended and restated pooling agreement that's under consideration. Uh, we have this new market called the extended day ahead market otherwise known as EDAM. And that new market that's starting May 1st is really causing us to change how we fundamentally operate schedule power with the members. It is a very big change. Um and a lot of those changes are getting reflected in this agreement. Derek, are you steering or you know um

just raise your hand.

Okay. Um so Pacifica Corp and Pacific Corp is in charge of the referred to as the balancing area. So UAMS is within Pacifica Corp's balancing area and Pacific Corp has made the decision to go into this extended day ahead market. It starts May 1st 2026. Um so right now at Uamps a huge amount of our time is dedicated towards preparing for this change and how we buy and schedule power for the members to be ready for this EDAM. Um we're required to participate in EDAM. We do not have a choice on it. It is what it is. Um and I'll talk about um some of the opportunities that are coming with that. Um, we can get into that a little bit more. Another thing to point out at the outset is this agreement that we're updating now, we've had um a lot of changes happen in the last 40 years. Uh, we put the agreement together in 40 years and there really haven't been many updates to it at all in the 40 years. So, we're updating it now because it's also time. I um have been at UMS for this is my 15th year and it's always been a item that we've known within that 15-year period that we needed to get to. So, we're [clears throat] finally getting to it. But just wanted to provide a little context. Uh next slide, please, Christina. Um a little bit more. Um you know, historically it's like I said, it's been the framework that's allowed our members to buy and sell power. Um, and it's it's been a nice vehicle where they're able to um deal with any surpluses they have.

They're able to put, you know, excess power into this pool and then it can get redistributed um to all of the U AMPs members who need it. Um, and as we look at this new agreement, um, we're going to continue to be able to facilitate, uh, the pool project for members like we have historically, but it's also being updated to allow us to participate in this more organized market. And I'm going to talk about sort of the differences between a bilateral market that we have known for the last 40 years versus this new organized market that's coming. So just wait one slide or two for that. Um the agreement does go into a lot of detail on how we're going to actually charge members. Uh we'll talk about it. One of the key principles is cost causation. Um and we effectively want to make sure that costs flow down to specific members based on the resources that they have. Um so we're not dealing with any sort of cross subsidization between the members um as we put the agreement together. And I should mention that um this this amended and restated pooling agreement was the product of going back and forth with the members really over the last year. Um and the cost causation principle was a key principle uh that the members rallied around um because they want to make sure that yeah if they're bringing certain resources then other members aren't you know leaning on those resources um so that principle shows up throughout the agreement. Um, another key component is flexibility and we always as a one of our big foundational principles is always

centered around member autonomy. Members can do what they want to do as far as their power supply. You know, that's a distinction that we have under our model where the members get to choose which projects they participate in or not. Um, so that will show up here in the the body of the agreement. Um, and we do think that the agreement's consistent with our mission, vision, and values, um, which we've recently updated over this last year, and I'll talk about that at the the end of the slides. Um, next slide, please, Christina. So this is the slide um that I mentioned that is getting at what what is this different marketplace that we're entering into. Um you know we've been operating under a bilateral market for the last 40 years. And you know what does what does that mean? It means you know under this slide you know you've got utility A um they could be selling to utility B or C and we're trading power amongst each other. That's what we've been doing for the last 40 plus years. And um then there's balancing that happens amongst the utilities and they make sure that there's sufficient resources to meet the loads and that's the responsibility of those utilities, the balancing area authorities like the Civic Corpus that I mentioned earlier. The difference that we're moving into is a more centralized market. And in this case, um, Kaiso, the California independent system operator, is the centralized market. And they're going to be in charge of making sure that there's enough resources to meet all of the electric loads um within the footprint. And um that is a fundamental change um

from what we've been operating under historically. Um and it is a it is a big change. Um, but part of the promise behind it is you're going to have a broader foot footprint of resources and the idea is that it's going to be a more economic dispatch. And that is an aspect of this transition that we're excited about at UAMPs. Um because we want to make sure and it's essential to our mission that the wholesale power rates for the members are as cost competitive as possible. Um we see in the future as electric loads grow um that there there are going to be cost pressures on wholesale power rates. Um, so we do support the move. Um, we do have challenges moving into EDAM. We're working through those. We're being very vocal with the California independent system operator. They've been very cooperative in taking our feedback as well as Pacific Corp. Um, I'm not going to say it's not a challenge. It is. Um, but we think long term we'll work through those challenges and this will be the most cost-effective way to proceed forward in the coming years. There probably will be hiccups as the thing goes live um in May. So, next slide please. Um, and this gets into some of the discussion points I just mentioned. I mean overall our objective as utility is to make sure that the lights stay on and we do it at the most cost-effective way possible. Um and one of the unique differences um is we've always thought

about our generation resources and our load um kind of together and under this organized market they become separated and as we participate in the market and this is a little conceptual so please if there questions on it um ask um we actually bid in all of the um AMP's members loads on an aggregate basis into the market and so then the market serves the aggregate load um and they do it through the lowest cost set of resources. So they identify looking out at all the resources in this footprint. What are the set of resources that are the cheapest set of resources to meet the UAMP's load? And that's a very different approach than what we've historically done because we at UAS have effectively been doing that for the members um and now this market is going to do it. Um the other key distinction is the utilities sell their generation into the market and the market decides whether that generation that's being bid into the market is going to be the most cost-effective generation to meet the needs of the market. So it's a very different approach. Um but conceptually when you think about it hopefully you can see why this approach by looking at a broad set of resources can result in a more economic wholesale power supply for all the loads within the marketplace. Um,

Mason, a question. I think in the past member cities have been able to trade with member cities. Is that still going to be able to to be accomplished under this model?

It is going to be something that we we can continue to do. it is becoming more complex and that is one particular issue that we're working through currently is trying to figure out how we can accommodate that because that has been a key thing. Um what we're seeing is those trades between members um there could be situations where the cost is not certain between those two members and it has to be settled up after the fact. And that's that's sort of the the crux of it that we've been struggling on because it creates a lot of cost uncertainty. for those two members if there's an after the-act settlement of that power trade.

How's that been handled in the past? Because I feel like that's not anything new. Um that is new and that is

the settling up. Yeah, because um the market would the market will have a clearing price and that could result in a cost difference between what the members had contracted for. So that's creating the cost uncertainty whereas the members previously would say we'd like to transact and buy power from each other for $50 a megawatt hour and that was that right? So it's a new problem now with this EDAT with it past. It hasn't been. Yeah. That settling up just occurred.

Correct. But it was Yeah. The the purchase price wasn't subject to a future settle settlement. Um, and that's, you know, it's one of the issues that we're grappling with right now and it's one of the things that, you know, we're going to bend over backwards to try to figure out a good way to facilitate it because we want to I mean, we want to continue to have that practice. How does how does EDAM stop that settling or or influence that happened in the past? What's what's the change there that

is occurring now that it's going into the centralized that you're that deficiency where the settling up and and maybe I'm misunderstanding that going into this that settling up is going to cause a problem. How does I think am I explaining that improperly? I think I think the question the mayor is asking algebra [laughter] and that's a obviously a story problem. I think the question the mayor is asking is if if Brigham City enters in a wholesale contract with Shell

versus Lehi, why is it different through EDAN? I I think that I think that's what the mayor's asking is how does EDAM change that wholesale contract whether it's a shell that's a non USamps member or Lehi city that it is the UAS member Lehigh is a bad example they're short bound [laughter] yeah so yeah it's a a tracking of the specific resources and then the metering of that's creating the problem or two.

Well, I mean that could be a potential fix. That's I mean we're working we're working all of it. Yeah. Yeah. I mean again it's this is we don't we don't have the fix completely ironed out on this but we know that this is one of the issues that we have been actively working um this particular question you asked I think got we started working the issue over Christmas and we're still working it okay I think yeah sorry I didn't mean to interrupt

no it's a great question I mean it's it's one of the items that you know we really struggle with because we want to make sure that this market works for the members and there are aspects of it that like this one where we're like ah this kind of doesn't work that well but we didn't design the market. So the metering I mean maybe just just quickly for the council we've asked some of these questions but I I think there could be additional infrastructure costs that would have to be in place that may be member responsibility but there is a way to make it work. It's just we've got to figure out how to make it work. Is that the correct? I think so. And I think, you know, some of it just may take a little bit of time to work through it as as we learn the market um as it goes live. And you know, we may learn more about this particular issue as we go through. Earlier this month, we started parallel operations, which is sort of a test period. And we're learning a lot through that period of time. Um,

so will this affect all the our contracts that we have for set prices already for base floats and everything? It's not going to affect not external. This is really just our what okay it's what we have when we're short and we go to market. It'll absolutely affect when we go to market our ability to contract power from city to city within Uamps. obviously subject to additional work on the M side. I mean it I will state that it's it's something that that in my opinion we need to figure out it's a must because you know how many members of Us is there 38 or

well there's around 38 that are actively buyed and selling power and subject to this agreement 50 but you know I think historically that advantage internal within US cities is is extremely important to Brig City and other cities that are long and city that are short. So, Oh, yeah. In a in a sense, not giving up, but is is the ability your scheduling ability as us being kind it seems like it's kind of being taken away by Kai Kai what it Yeah.

Um, it's I mean, it depends on how you look at it. I mean, I I think it's it's it's taking away some of the specific discretion that we would have on what set of resources to meet our members loads because they are TASO is is doing some of that. We do have the ability to self-chedu our resources into the market and that's another aspect of the market. But when you do that, then you know you're losing some of the market benefits because when you do that, you're not necessarily getting the least cost power to serve your load. It's I mean these are great questions. I mean it is a fundamental change. There's no doubt about it. I don't think to your point it wasn't it wasn't instigated by UAP. This is something that was done federally or regionally by

uh it was done by Pacific Corp the balancing area authority and we I mean the only thing that we could really do is go out of the balancing area authority and create our own balancing area authority and not to go down that rabbit hole too far. But that is an extremely difficult task. In order to do that, would you have to have transmission authority? Well, that that would be part of it. We would have to figure out the transmission side of it as well. And that it's just a huge task. So, I mean there go ahead. No, no,

well, I was just going to say I mean there's there's trade-offs with this. Um, you know, conceptually we're in favor of this sort of organized market because we think in the long run it will result in the least cost wholesale power supply for the members. But this issue of buying and selling between the members is one of these speed bumps that we have to figure out as part of moving into the market. sort of feels like I mean to me and if I'm wrong that it's probably benefiting some other bigger corporations versus an or amps organization I mean to come out and and a thing in which we really don't have

because of sort of being pushed in we are there people that are benefiting more so than we are from such a thing and also So if they change rules, how does that affect? They have this big thing. We're all in it together. How does and they change some rules on that? How does that affect? Sure. Um could they do it without us saying we don't want to do that?

Sure. So the way the the process works is that um FK, the Federal Energy Regulatory Commission um does approve the market rules for EDMP. The civic court went through their filing process. Um we have intervened, filed comments on their rules. um because we're always going to be looking out, you know, they're they're making the rules and we're looking out for the best interests of the membership, right? And um yeah, there were aspects of the way the civic court filed that we did not like and we challenged them and um FK has ultimately approved the market design. there are aspects of the market that they're going to go back and look at once it goes live um that we do have concerns about um so council member that's yeah you're spot on. I mean, it's not not the not that we're happy with every little aspect of this because we're we're not. But we've got to go with it and make the best out of it. And it is it is challenging and yeah, they're not surprisingly to make rules that probably do provide advantages to them. When I think council member Smith add on, you know, in 2017 18 are I mean we were really open to the market um we we didn't have some some of our contracts we have today and you know we seen a a massive negative effect on our rates and every resident and and power payer in this community is fully aware of that and you know that that went through 2122 you know Brigen City's got its portfolio

build. Although we got some work to do, Jackie, but we've got a lot more of our portfolio contracted long term. These changes are not going to affect that as long as we contract. It's really when we're open to the market. Mason, you correct me if your opinion is different, but there's a small socialization of the market that is going to happen with EdA. Frankly, yet to be determined, but I don't think we're going to see as large a fluctuations as we did in 2018 2019 with Edam. That that's my proposition. It's yet to be seen. You know, when you when you we had snowstorm in Texas caused half, but what was the other one? Been falling ago. I've already forgot. But yeah, low water use. But I I think we're going to see a little bit softer market when we're open and less fluctuation with a broader spectrum of players in the pool. Makes you feel different. Derek, go ahead. But I mean that's yet to be determined. No, I mean, you know, that's that's kind of at the core of why many believe this broader footprint will result in lower wholesale power pricing. You just have a broader set of resources. They're getting centrally dispatched by, you know, a transparent market that's looking at the cost of generation from all these different resources and it's optimizing and finding what the least cost set of resources are to serve the load. Um, you know, I will say and it's something that, you know, we're actively working on through the development of the natural gas projects there in the market design. Um there is a design feature that certainly favors dispatchable

generation, you know, generation that you can turn on like natural gas. um that is clearly very important and will have a value and that's that's a a key consideration and it's it shouldn't be that surprising because we've over the last 10 or so years we have not been developing much in the way of dispatchable capacity in the west. Um when we think about most of the generation that's come on in the west it's been renewables non-dispatchable capacity and what we've also seen in the last couple years is a tremendous amount of electric grow load growth that's [clears throat] forecasted to continue. So that's putting that dispatchable capacity at a premium. Um, so that is a big concern that we have is getting those projects on as soon as possible and trying to figure out how to deal with the fact that we won't have that much dispatchable capacity while we go through those bridge years. Are there some um legal and financial protections in place for this going live on May 1st to protect the city or you for when they like to

Yeah, that's a great question. Um you know, we have been talking to the membership about um budgeting differently. Um you know, that's one side of it. Um and thinking about um how we should be expecting pricing to roll out through the summer. Um, and we actually have just finished our budgetary process. So, we have incorporated that in and I think with some conservatism. Um, I'll also share that it's been a little surprising what the forward market has looked like. It's been quite cheap. So, that's that's been really nice too um to deal with some of this uncertainty. Um, so we have been taking advantage of Ford market purchasing, which it's been, yeah, again, surprising some of the pricing we've seen there, especially as we're experiencing the winter that we have here and we know that we're very drought sensitive from a hydro perspective. Um, but we're going to be constantly looking at ways to mitig mitigate cost exposure. Um, you know, we do have a under consideration a rate stabilization fund at U AMS that could hopefully mitigate some of the pricing fluctuation if it does occur. Um, we're absolutely thinking of all those things because there's just a fair amount of uncertainty with the new market. I think one thing to add to uh Mr. Cotter's texting me in the back. There's penalties for being too short with new edam. That's something that you know we can't do what we did in 2017 2018 anymore because we'd be penalized for it. So, and it's us as a whole, not Brigham City specifically, but

too short. Go explain that a little bit more. Are we're open to the market with out forward long-term contracts. Yeah. So, we're going to have to contract and Jackie's been sending about two emails a week saying, "Let's go Brigham City. Come on, Derek." So, and that Yeah. And that's that's the reason why we can't leave ourselves that short as you as a whole or or you get panelized through EDAM. So, our our continued I I'll just mayor if you're okay, I'll talk about it real quickly. Yep.

Our our continued um and you know helps us a ton. We've never had to worry a ton about hey Brigham City load specific. Um we've been getting some consulting help with that and looking at Brigham City specific portfolio and how that works and making sure that we're making best decisions getting that back to looking at our load growth. I mean, I think council's aware we're about to put another in the first quarter of 27, we're going to grow by 25%. With one customer coming on. So, looking at that down the road, we are using some additional consulting help to help us with that and make sure that uh we're taking care of Brigham City and then that information gets back to to you amps and making sure that our portfolio is sufficiently covered. I can't remember the exact percentages. I don't know if you know off the top of your head, but yeah. Yeah. And so maybe Christina, if you can go to the next slide. Some of the slides I know do um

I think that went Yeah. So this slide actually gets into um the penalty discussion we were just having. Sorry, I'll let you.

No, no, this is great. Like these questions are great. I mean, these slides are just slides. We don't have to I prefer not to. um go through every single one of them, but um this is referred to as the resource sufficiency obligation. Another way of thinking about this resource sufficiency obligation, if you're a member, you're needing to demonstrate that every hour you have enough resources, whether it's power purchased or whether it's owned resources through UAS or yourself. um to meet your load and that is a huge difference than what how we've been operating historically. Um you know the fact of the matter is that many of our members have effectively we would say leaned on the market and not necessarily had that ability to show resource sufficiency. Um and that is something that we're monitoring very closely and is getting an understanding especially as we're through this process of parallel operations like looking at every hour and getting a sense of okay how much resource um does amps have to bring and then we're going to be flowing this down to each member. This this is another good example of why this cost causation principle was such a big deal within the membership is because members want to make sure that you know if you're a member and you're meeting your resource sufficiency obligation um but then you have another member next to you that's not and you gets a penalty, they want to make sure that penalty goes to that member. Um and this is this is a big departure. It's um very very different.

So are you saying that we we would I mean there will be lots of times that we are saying we we need X for our load and we're buying X and we're only using X or overpaying. Yeah. Are are you saying that that's what's happening? No. Well, let me let me let me take a stab at this because um they um you guys peak at around 50ish 55 56 last summer. Yeah.

Okay. Yeah. Um so let's say your peak is 50 for the example. Um, for your hour peak, you would have to show that you have 50 megawws. And under this structure, in all likelihood, it's going to be 50 plus a percentage. And the market would be telling you amps that as a whole, we're going to have to meet all of our load plus some percentage. And with forward contracts, forward internal generation or whatever it is. Yep.

Yeah. Because what the market is trying to do is make sure that there's sufficient capacity to meet the load and they don't want um an entity to be leaning on the market and not bringing sufficient resources. Historically, you know, prior to our our issues 2018 through 2020, Brian City had left itself open to the market sufficiently because power was cheap,

extremely cheap. And you know, we've seen that fluctuation and we've obviously tightened that down significantly. It's easier to set rates. Dave Berg's maybe listening. That's coming here shortly. But if you know setting your rates is is obviously if you know what your power is over the next five years it's easier to set rates and and know exactly what's going to happen but you know Brigham City has gained and Brigham City has lost being that open to the market and our obviously the rules are changing the rule book's going to be different so yeah to give you a little broader perspective I mean there different organized markets in the country where there is a payment for capacity. So if you have dispatchable capacity, you get paid for it. And that's not what this market's doing. Not yet. But this is sort of a baby step towards that sort of payment scheme. Make sure we get it on the record. Jack,

when you said that um you know you had to cover your load. So that one benefit of the pooling agreement on the how we've changed it is u will take over that responsibility within that fiscal year. So we'll put together an annual purchase plan and we will make sure that you're resource deficient within the year. So we're going to plan plan and and then when we buy it will be allocated to the members who need it but you won't have to be worrying about in within that 12 month period to be buying for yourself because members don't have the the day day-to-day staff that does that. So, we do it. So, that's the huge benefit of the the new points.

And to tag on to that thought, um it's on sort of the bottom of this slide where we talk about the annual purchase plan. And this is an example where we're preserving member autonomy because we do have members that want to do those purchases. So, we're allowing certain members if they want to, they have the wherewithal among staff, they can do those purchases, but we do have a bit of a backs stop built into the the contract that if that member who has opted out to continue to do all those purchases, if we're look, we still have the ability to buy power for resource deficiency purposes because what we don't want is to get a penalty. and suffer through that penalty because that member that's opted out hasn't purchased the

that penalty come to the whole organization and you amps or just that member city that we will allocate it down to the member and that's sort of that cost causation principle exercise. So you you said that um well in the past so Brigham City's been able to go lock up our long-term contracts and then when we go to the market we could buy from pretty much anybody that's out there that's offering power right now we'll have to go to this marketplace. Who who is setting the marketplace? You said they they would make the they would allow the cheapest places to produce power. So who's running that?

That is the California independent system operator. and um get into a little more of the detail there. They will have information from every single generator within the footprint with that pricing information and that is how they will look at and determine what resources are going to be the the least cost resources to meet the aggregate load within the footprint. On top of it to make it a little more complicated, they will also look at the transmission in between resources and load and identify if there's congestion and that will also be a pricing component of the market.

So they can tell this plant you have to shut down because that one over there right now is cheaper. Kick on power. Well, it just may not get dispatched. What they would say you will get a dispatch signal. So for you know if we're looking at bidding in our natural gas project in PACE um you know we'll bid it in based on our cost to run and they may say run or they may say no don't run our project they these guys could just tell us not to run it. They could or we can take the self-schedu option that I mentioned earlier and we could do that just keep it within us. Correct. You're you're talking about our internal peaking generator. That's the question.

Oh, sorry. Yeah. Well, no, both because we were talking about the PAC as well. So, when when our when we want to have our internal generator kick on the peaking plant, they could tell us no. No. Go ahead, Mason. Yeah. No, they they they wouldn't tell you no. And it's um the internal generation's a little different that way. I mean you and I'm trying to remember if yall are going to be in the Kaiso network model three units. Yes. Yeah. Y our internal peaker was not just to generate for us mostly it's just to sell it out on the market. We will be able to

this will not affect Brigham City's ability one way or the other. So obviously if we're short and for our for ourselves within our city and our strike price internally is cheaper than the day ahead market, it'll run. If it's vice versa,

we'll be we'll buy it on the market. Yes, we'll be able to economically run that generator um the right word completely separate from you know what that market is telling us. Even though it it will be registered in there, but we're going to have to register it and take a percentage of what we think it's going to create load profile-wise through the whole year that it'll still be ran on a 247 economical basis. Mason's not going to call us one day and say, "Turn your generator off." [laughter] Sure. No, I understand. So,

yeah. No, there's going to be a lot more back and forth. We were actually talking about earlier today on talking to members that have their own internal generation and communicating, you know, like the last seven days of market pricing and sort of giving each member a better sense of it makes sense to turn on their generation rather than get exposed to the market pricing. We could turn that on and sell that to ultimately, but that ability is not going to be um there on day one when the market goes live. Luckily for us, these things will be figured out until it's Yeah.

set the if we put it out market. The day ahead market sets price day ahead market. It's just a Yeah. Oh, what's the best term? a day ahead price. Yeah. Yeah. It's a conglomeration through the Kaiso market. I mean, that's what it is. So, we need to invest in our low plus a certain percentage and that a certain amount of money, but there's no guarantee that that extra percentage if we need it or we need to dispatch it that we'll get a good return depending upon the market because they're setting the price.

What's cool about it is you can see it 247. You can now, but you'll make the decision to run that internal generation based on the day ahead market and a gas contract with our strike price. And that's there's a third element to running a natural gas plant, and it's got a long-term gas contract. There's a that's a whole separate um element can't think of the right word, but it's a variable whole separate variable into that decision because there could be days where it makes sense just to sell the gas and leave the generator off too. So, completely different variable. Okay,

great questions. Um, next slide, please. You lost DJ when you said variable. That's an algebra. [laughter] So, um, so does EDM allow us to just, uh, buy from the open market then, or do we have to go through this their their market that they've got here? Oh, no. You can still do bilateral purchases. Okay.

You can. Yeah. So that's yeah you can do you can do the combination of bilateral purchases um or you can be leaving some to the market and those are those are the types of strategic discussions we're going to be having with the members and reflecting that in that annual purchase plan that Jackie referenced because you know there's advantages of shoring up and doing a bilateral purchase and having a known price um but then you always wonder and need to have a strategy around well if I left it to day ahead pricing would that have been more economic we're going to be going through that analysis with the members and I think maybe perfect example I think we've talked about this previously but you know we felt like we were way too open to the market and started contracting a lot longer than we previously had been the way just the way our load profile is in the city there's a few months where we we were actually long for certain hours of each day and had to sell and the market softened. So, we were actually selling some of our contracts at a loss, frankly. That it's it's not rocket science, but it might be close to us. So, [laughter] it's a 247 operation. It's not, you know, it's not easy. And those things fluctuate whether, you know, demand, growth within our city. It's there there's not a crystal ball. Yeah, I'm just looking at this slide here. I mean, we've talked about a lot of these points, but I think they're worth hitting quickly um in review. Um you know, I think based on this discussion, hopefully it's becoming clear why we needed to update this agreement to be able to have the right

type of authorities to participate in this new market. Um and the idea is that this agreement would supersede the existing agreement would become effective May one when this market EDAM goes live. Um our old pooling agreement did not have the same sort of new project management committee governance provisions that most of our more recent agreements have. And at the US level, the project management committee is just the committee that meets and really governs the project. Um there's a lot more formality that we're going to have moving forward dealing with participating in this market doing the annual purchase plan the forecasted deficiencies a concept that is in the actual contract and that is identifying on a per member basis um what their deficiency is. So what what sort of short position they have relative to their load and the resources that they have procured and that's concerning from the standpoint of making sure that we're able to meet that resource sufficiency obligation because we really want to avoid any penalties. Um some of the agreement does formalize historical practices that we've done over the last 20 plus years. um you know the old agreement really didn't have some of the specific rate covenants um that were in most of our new agreements. Um we there are audit rights. Uh one thing that I'll highlight in a later slide, but um we know that

this first year as EDAM goes live um we're going to learn a lot. Um so we're anticipating doing a very thorough audit um make sure that all the cost allocation going the right way um a year into EDAM. I think we're covering all this and you could go to the next slide. I want to be respectful of the time. I know you have other things on the agenda. Um the term termination, the agreement becomes effective May one. Um there's basically a five-year notice to terminate the project management committee could agree to um shorten that time. Any amendments would require approval of the project management committee. See, next slide please. Um there is this project management committee that's been established. Um that means each member has their own rep on the committee and they vote. Um just like our other agreements, the board of directors ratifies any actions that the project management committee takes. Um, another thing that's unique to this agreement and something we developed given all of the complexity that EDAM is going to bring is there's going to be an advisory committee um that sort of sits underneath the project management committee if you will that's working on real nitty-gritty issues. Um, this committee is actually starting their first meeting next week. Um, because we need to make sure that as we're rolling out this new platform with EDAM that we're getting a lot of real time feedback from the members. Um, so they have a list of seven or so hot topics that they're going to be hitting

between now and May one. Um but the plan is to keep this advisory committee going for foreseeable future. Next talked about cost causation. Um, and there is the concept, I mean, we're we're going to always do our best to directly allocate cost to members that should be the that are the source of the cost. In the event that there's a cost that's not attributable to a specific member, then it would be allocated on the load ratio share, which is a defined term in the agreement. really that just means um each member's load makes up a load ratio share. So any of these costs that are directly allocable to a specific member are going to be allocated based on the member size more or less. Um next slide please. I mentioned this internal audit. I think this is a really good thing for us to do, not just from a cost allocation standpoint, but also I think we're going to learn a lot about operational decisions that we make in this market over the first year, um, and learn from them. I mean, we're going to be monitoring all this as we go through it in real time. Should also mention at we do have a risk management policy, an energy risk management policy. Um, and this will also come into play with the extended day ahead market. Um, so we'll be following that risk management policy. Next slide, please. Talked about the advisory committee. Um, Jackie, can you remind me are there seven, eight, eight members that are on that committee right now? Um, and I think that's going to be a good format, too. As you can see here, these are some of the um items that are going to be

taken up. U one thing that we're doing is like the billing is going to change for us. It's going to look very different under this. Um so we're planning on having mock bills created out of the parallel operations that we're currently in and working that through with the members likely in the April time frame. There's a lot of scheduling procedures that are changing. Um, we have a right now we've got a morning generation call at every every morning at 9:00 a.m. Uh, we were talking this morning about we're likely going to end up having to have two calls a day um once this market goes live. Next slide, please. Annual purchase plan. We talked about this already. Um, I think this is going to be a real good process to work forward. I go to the next slide, it'll give a little more, I think, visualization of how this is going to work. Um what we're thinking is that um every year we're going to issue a questionnaire to the member the membership October one and um one of the main drivers in that questionnaire is to get a better sense of what's going on in your communities. How is the load growing? Any big new loads like Derek mentioned that are coming on because that's absolutely going to affect how you might have a deficiency in the marketplace. Um, so we'll do that in the October time frame. We've got to go through a reconciliation process for that and then we'll provide a forecast to the members in November. They'll review that and then in December, you know, we'll have a final load and resource forecast and from that then that will allow us to then sort of move forward with executing on that annual purchase plan.

Um so there'll be a lot more back and forth um between the members and u amps on their forecasted load which I think's a good next slide. Who who currently is the pool project chair? Uh Jeremy Franklin from Parano. Yep. Who breaks the tiebo? Who breaks the tiebo? What do you mean? There's eight people. What if it's a Oh, yeah. It's just an advisory filibuster. So, yeah, I'm just kidding. Yeah, trying to lighten. If we if we told them they had to vote, we might not have gotten a good participation.

Um, let's see. So, outside resources, members still can bring in outside resources. Um, we're going to be following the direction of the members. Again, sticking to that member autonomy. You know the members are going to decide if they bring us an outside resource then they'll tell us how they want us to schedule it. Next slide please. You know other agreement provisions these are sort of standard contractual position provisions. Payment obligation rate covenant reps and warranties identification notices and standard. Next slide please. is sorry Mason the last slide or comments is is EDAM what is it doing with transmission I mean if if a city brings on a a load but transmission is all jammed up rocky p rocky mountain power how's how's how is that going to affect the pool

yeah no that's a great question um I wouldn't even try to answer it [clears throat]

well I mean it's it's something that, you know, we are looking into and one of the biggest open issues right now is how the market is going to deal with transmission congestion. Um because the hypothetical mayor that you brought up, you know, could result in more transmission congestion, right? Trying to make sure that, you know, you're actually being able to serve that new load. And a a good example of a good hypothetical to think about is, you know, a big data center load. you know that all of a sudden is you know a huge load need and what what is the impact of that? Um because that will affect the pricing. We refer to it as nodal pricing. So you know that it will have pricing you know specific to that area where the data center is and that can yeah that can change pricing in the market. But that's the type of thing that is interesting and we're excited to drill into as part of this. Um we're spending a lot more time at a on transition. That's another maybe a teaser to come to the toolkit in April in St. George. Um so please do that. Jackie,

you put that on a different week than ULCT. No, it's the same. Okay. Yeah. Does that mean you'll be there? Well, I was last year. We all were. Yeah. Yeah, we might have left early, but we were there and we'll talk we will talk about EDAP some more. Yes. Um, next slide please.

Uh, so our recommended action is we are seeking approval of this. Um, you know, we have the May one go live date. Um, so we appreciate really appreciate all the questions. These these have been great. Um and happy to answer any questions they may have. Um with that back have anything like without having club with a great idea again [laughter] I I that just council me we we we feel your pain on a daily basis unfortunately

I'm gonna ask one question I think the council should ask I I think that the pooling agreement doesn't necessarily prohibit or enable the member-tomember internal movement. Mason's obviously committed to you in a public meeting and they're going to continue to work on it. So I don't think I I think from an approval process from the council, this pooling agreement doesn't say one way or the other on that internal movement. So I my comment is is I don't think that issue that Mason is working on is essentially relevant to the decision that you have with this specific agreement in front of you today. Correct me if you feel any different than I do. Mason.

No, I think I think that's correct. Yeah. So have staff and you and legal gone through and

Yeah, we go ahead. We don't like everything, but we are where we are and we've Mason's definitely heard our opinion um through our UMass representative previously and we've been involved. Yes. There but honestly there's positive too and it there's a lot of unknown and I think you feel the exact same way with a lot of that. So man in charge is sitting there. You can ask standing before you take action. If there's another council questions, mayor, and I apologize. I didn't realize that the answer reps for Brigham City are also in this agreement that is in front of you. So, if you are comfortable, we need to make a change and and we need to make that change so it reflects

Yeah. what we're trying to do. So, do you want me to take that right now real quick? So, council, we'd ask you in the motion. So, we've been using some consulting help um for multiple items and um obviously we got a lot of stuff going on in public power. So, we've had some consulting consultants helping us over the past 24 months with a couple items. I would the mayor I guess I'm speaking on behalf of the mayor would ask the council to appoint as our main rep um Kevin Garlic. He has been consulting the city for about a year and a half now. And then with Tyler Pugsley and Derek Oiler as alternates in that section of the agreement if council's comfortable with that, make the changes with the employment changes that have happened at the city. Um, and obviously Kevin, we spoke to him about that. Um, it's something he'd be willing to do and I did talk to Mason briefly before the meeting tonight and he was comfortable with that. So,

what is time time frame for the consult? Um, so his specific contract is being worked out. Um, Bill separately. I don't necessarily want to go into ton of the details of that contract with this specifically tonight. It's not specified in this.

No, it's not. Yep. Okay. We've got an action that has an amendment to it with the names that are in the action in the agreement. And uh so we would encourage action to be taken now that we've had the presentation working. We we will absolutely and I I very much appreciate the questions just yes feels like I'm getting getting pushed in I [clears throat] mean okay then I I'll move that uh approved the representative main representatively have a motion by council member Smith do we have a Second. Second. Have a second. Second by council member Jensen. Uh, all those in favor?

I I. Any opposed? Thank you. Motion passes. Thank you, Mason and Jackie, for coming up. Drive safe back home. Thanks.

Hey, black ice. That's what you worry about on a night like tonight because it warmed up just Okay. All right. All right. We have two discussion items. First one, we'll have an electric rate study update by uh Tom Carter and Mr. Dave Berg, who we should be familiar with, who is in Minnesota and on Zoom. If council remembers this uh four years ago, we uh did our uh rate study with Mr. Ber and he suggested a a uh a staggered or a a graduated uh rate that uh we implemented the last leg of last last year. And so it's time to do a a new rate study and and so this is just the discussion to highlight the the goalpost that we're trying to hit. So we'll invite Mr. Berg and Mr. Berg. Okay. All right. Dave's on. Go ahead Dave. You're on mute, Dave.

There we go. Can you hear me? Yes, sir. All right. Well, good evening. Um, all kinds of fun things I can say about that market stuff, but you've heard enough about that. So, um,

so yeah, I'm so I'm Dave Berg, and I've I've worked with you folks before. My official title is I'm the rate guy. So, I'm uh you've enlisted my assistance again to to help you take a look at your electric rates. And when we talk about electric rates, the things that we're looking at, there are several things. One, obviously, uh the rates are the price tag that you put on the product that you sell. So ultimately the job of rates is to help you collect enough money to pay all your bills and have a fair margin on the bottom line. The other thing that we worry about is something that we refer to as cost of service. And my best way to talk about cost of service is it's sort of a fairness doctrine in that we're looking at different classes of customers. So, you know, like residential and and general service and large general service and industrial and so on and and trying to make sure that the different groups of customers are paying their fair share. I will add that since you implemented a new AMI system, uh we've gotten a whole bunch of AMI data from you which we're in the process of analyzing which is really going to help us to do a better job at the cost allocation process because we we really get a a a great accurate data about how each different group of customers uses energy and and when they use it and and how they use it to to really help make the cost of service analysis be sort of that much better. The other thing is is that you've got a lot going on in Brigham and you've got real potential for growth and you're looking at spending some money on local infrastructure and you're looking at spending some money on generation. So, there's a lot of important things

going on that taking a look at your rates is going to be important relative to to making sure that that as this is happening and you're spending all this money and you're getting, you know, the growth that you're anticipating that um you know, from a financial perspective that we're able to do that in a in a clear and planned and and fair way. um relative to um to rates and and to me uh if you remember but I' I've been around for over 40 years. Um I am up in Minnesota. We got a 8 inches of snow yesterday in the middle of blowing up my driveway. My snowblower quit today, so that was fun. Um you mentioned Kevin Garlic. Uh Kevin and I go way back. Uh the first rate job I did in Utah was in Provo years ago when Kevin was there and then he's sort of been responsible for uh sort of spreading the word over them over the many years of of my services. And so I'm I've always been very appreciative to him because I uh I I really love with all of my clients in Utah and and I'm really appreciative that you've decided to work with me again. One of the things I guess right off the bat here is I'd like to see from the council's perspective if you've got any questions around rates. I will tell you that the plan is for me to present our recommendations at your March 19th meeting. So that's uh you know about four weeks from now. Um so that's the that's the plan is to present um those those final uh recommendations for rates going forward at that meeting. But I'm I'm curious from your perspective, and I know most of you have have been on the council for a while and were around last time when I did this, and if you've got any questions or concerns about rates going forward that you'd like to like to ask

me about, council, do you have anything going forward?

Yeah, I have I have a question. Last time, um, you actually recommended our rates were higher and the council pushed back a little bit and we went lower. Um, do you have a an effect of what was that terrible? Was that good? Um, I mean, we didn't follow your recommendation all the way. We pushed back some. And what was what are your thoughts on that? Uh, where we settled? Well, one, I I would say it's not entirely unusual for, you know, the governing bodies of my clients to to make a different uh decision than than my recommendation. So, you know, I'm basically okay with that. Um, you know, and looking at, you know, your results have been um, you know, have been reasonably good looking in the past on what I've looked at so far. So, I I don't think that you were um, necessarily wrong uh, in making that decision. You know, one of the things is, you know, to a certain extent, if your rates have been a little higher, you'd have a little bit more money in reserves to help relative to funding some of the things that you've got going forward. But we take all of that in into account. Uh, and I will, you know, obviously be making another recommendation based on on my analysis. But, you know, ultimately the responsibility for making the decision always lies with you folks.

Um, One one quick question I've got is what what is our total residential demand um for Brigham City? You mean how much energy does your do the residential customers buy? Yeah. I I can't tell you that I've got that number off the top of my head right now sitting here. Um, I can tell you, um,

sorry, Dave, this is Derek. I think the reason Council Member Smith's talking about that is we we we briefly touched on that four years ago of whether we should introduce residential demand charges. And I think council member Smith's just saying does it, you know, through the analysis that you've done up to this point, um, is there an appetite or or a need or a reason to start looking that way with residential demand charges monthly?

Okay. And that's that that's a good question. Now, one of the things to to remember is that simply because they don't have a demand charge doesn't mean they're not paying for demand. Because when when you look at your rates, you'll notice that the residential rates on an energy basis uh go from just under 12 cents to and in the summertime up to almost 16 cents in the rate. Whereas if you look at the that customers who are build demand and energy like if we look at the general service with demand once they get into being built for demand then their energy rate is only about 5 cents per per kilowatt hour and so with the residential class the demand costs are baked into the energy rate. Now there are there are not a lot but there are some utilities who are starting to implement residential demand charges and I would say that they're sort of there's sort of good and bad there. One of the one of the interesting things about the residential class that's different than let's say an industrial or a large general service class is that large customers their demand is fairly consistent. they have machines that are running and they're running a lot. And so, uh, and particularly during the most expensive time of your day when you incur the demand charges based on your power supply needs, their loads and all of those customers loads are pretty much there at that time. So that when you include some of those costs in a demand charge, it can be reasonably fair. What's interesting about residential customers is one when you look at your home you might set let's say you set a 5KW peak in your home but when you set those often times

they're for very short periods of time for 15 minutes you've got both the air conditioner running and maybe the dishwasher running and a couple other things and you're at five but then something goes off and you drop down to four something else drops off and you drop down to two then all of a sudden you come back up to 4. Some residential customers peak at 6:00 a.m., some peak at 8:00 a.m., some peak at noon, some peak at 1000 p.m. And so the the demand cost, if you will, is different at those different times. And so sometimes when you come up with it can be fair for everyone, but it's unfair for many of them in in a manner of speaking. Now, some of the people who have implemented demand charges for residential, they start at a very low amount. Um, because when you look at like the industrial demand at let's say $10 a KW, sometimes in residential, people start at like 50 cents or a dollar per kW. But the other thing is is that from a fairness perspective because the more expensive stuff is always you know during afternoon to early evening. Another way to address that is with time of use rates as opposed to going to demand rates because then usage especially in the summer during those periods of time when you're setting your demand [clears throat] that's when power is the most expensive including demand charges. So, so time of use rates can somewhat accomplish the same thing and oftentimes in a bit more of a fair perspective. Um, so there's a there's a lot of intricacies around that and and we can look at that issue as part of this study and have more information specifically to to address that.

Dave, I think uh we we've seen two Utah cities go to time of day billing um on residential this year. I know we briefly did discuss that four years ago as well, but I mean what's your what's your initial thoughts on that? Well, I think personally and based on my experience and analysis is that I believe time of day is better than residential demand. Uh and because you now have an AMI system, you're in you're in a situation where implementing time of use rates um is something you could definitely do. It would definitely be a learning curve for our citizens. Yeah.

Yeah. And I honestly It's funny because you know I see enough gray hair up there that some of you remember time of use longdistance telephone calls. Right. Right. [laughter]

And was anybody was anybody confused by those? All I know is if you made a call before 900 p.m. you lost a hand. Um so I I think I think to a certain extent customers um can adjust uh to that notion. Um I I think they would understand time of use more than they will understand your inclining block rate in the summer where the more they use the more expensive it gets because they don't know when they cross the threshold of 600 kilowatt hours.

Yes, that's true. Yeah, that was that was one of my questions is with this tiered thing when you have one versus a price for one to 400 and 400 to a,000 power doesn't get more expensive. It's just

well actually though there is a there is a rationale especially the way that you've done it where you have summer tiers but not non-summer tiers and there's a real parallel think about the parallel to oftentimes watering rates where there's a seasonal because of irrigation in the summer what happens is because of air conditioning load you have particularly the residential class you have a lot more usage in the summer than you do during the nons on summer and that's when you set your peak demands, which is what you have to build your infrastructure for. And what happens is when they use a lot of energy for maybe four months of the summer that they don't use the rest of the time, you've had to build a lot of infrastructure that's kind of being wasted during the non-summer. And so by having those higher rates for that energy that you're only only selling during the summertime, it helps them pay for that infrastructure where you would prefer to collect the revenue over a 12-month period of time. So there is a costbased rationale to to that rate. There's also a real conservation um oriented uh view around around those inverted block rates as well. Okay.

Yeah. Council, I think one thing that would really help Dave in his preparation is if if the council wants to see some analysis on time of use, um, not just for residential, but including our commercial. I think, you know, right now would be the time to say, "Hey, Dave, let's I want to see that in March. I want you to go into that in detail and and look at that um for us." And obviously, you know, the conversation that we just got done with um that on, you know, I think the time of use kind of makes Yeah. more go in hand in

Yeah. I you know, and it's

gather what we're going to need to make. It's definitely a large undertaking um to do something like that with our rates, but it's, you know, if you look at EDAM, if you look at just honestly wholesale power in general in 2022 moving forward, you know, that's why you're seeing other Utah cities do it. I I know we briefly talked about it four years ago. In fact, I think what Dave Berg said four years ago in the meeting was don't be the first in Utah, but it's it's coming and it's it's here now, you know, and it with the, you know, with with the way the markets are moving there. There's logic behind it, but you know, it I will tell the council it might create some software upgrades on our accounting software side, but that's something we deal with. So, Oh, I'd Yeah, I would like to see that. I mean, just the differences to see, you know, is that a way to somebody to choose to save some money on their electric bill by doing something maybe a little different?

Yeah. And I I definitely I mean that's that's not a problem. We can give you a time of use um option particularly for residential. Then we can talk about whether or not the the interesting thing about about time of use rates is there are there are kind of two points of view around why you want to do time of use. One is we want to try to incentivize our customers to move their usage out of the on- peak period. So, you know, use it before 2 p.m. and after 8:00 p.m., whatever the whatever the time period may be. Um, so if we have a higher price, we we give some encouragement for that. The second is that during those peak times, electricity is simply more expensive. So a lot would say it's just more fair on a cost of service basis to charge more during the peak time and less during the off peak time because that's just a reflection of of way the costs are particularly as you move more and more into a more um aggressive real-time market if you will under EDM. Um now when you talk about when you get into bigger customers who have a demand charge to a large extent they've already kind of got a time of use rate in that they set their demands during the day and so they have an incentive to use more energy at night because that energy at night they only pay the low energy cost. They don't incur more demand cost. So there there's kind of a time of use component for them already. Um, and then particularly with commercial smaller commercial customers, some would argue that it it's difficult for them to move their usage. So, a lot of times people aren't a big fan of implementing time of use on them. You know, a restaurant, it's funny how people like to eat at noon and 6:00 p.m. and not at, you know, 3:00 in the

morning. Um and so you know the there becomes sort of a of a PR perspective but the fairness folks say well that's just too bad that they have to function during the day but that's when prices are also more expensive and so you know I get to do the cost of service and you all get to do the policy aspect of that. So [laughter]

I think that's good guidance. Is there anything any other suggestions or anything else council would like to see from Dave as he's moving forward this study? I think Tom and Derek and Tyler and I have been given some suggestions and meeting with him and having a good time learning from him. So, if there aren't any more suggestions, we'll cut him loose because it's got to be a little later there. Uh, it's only nine o'clock. Okay, bedtime. That's bedtime. Speaking of gray hairs. Yes. [laughter]

If I could, let me let me give you one example maybe to help you understand how markets work a little bit better. And it's a very quick example. One of the things to understand in markets is once you're in a full market, everybody buys all their energy from the market at the market price and everybody sells all their energy into the market at the market price. And owning generation is your hedge. And I'll give you a numerical example. Let's say you've got a generating unit that it's $50 a megawatt hour operating cost. If the market is $75, you sell your energy in for 75. You buy your energy out for 75. That's a wash. And your net cost is your generating, which is 50. And so your maximum is 50 as a cost even though the market's 75. However, if the market is 25, you don't run your unit and then you just buy your energy from the market for 25 and and you're coming out ahead compared to the $50 that it would have cost you to operate your unit. So that that's that's the wave that that markets work. We've been in a market up here um in in my for over 20 years now in operating in that way.

Yeah. I guess before I cut you loose, Dave, and it's not to you, but Oh, go ahead. Well, no. I just the discussion we had earlier with you amps. Do you have any insight on that or I mean

well not specifically with with what UAPs is doing and obviously this is all still in the discussion stages but you know Cal ISO has been operating a market in California for quite some time and and they're kind of extending that uh you know and PJM and energy New England and uh and uh and Mso and and other areas in the country and and and aircott in Texas have all had you know sort of fully functioning market. So, you're not really creating a new animal. It's just expanding into your area. But, uh there's certainly plenty of parts of the country that have have functioned in in that kind of a market. And it and it actually um I think it works pretty well.

Good feedback. Okay. Any any further comments or questions for Dave? Right. Thanks, Dave. We appreciate you being with us. All right. I'll be in touch and we'll certainly be talking in about four weeks. Sounds great. You'll be here in person on Yeah, he'll be in here in person. Correct. Well, no. Not if it's on the 19th. Be in the state, but not here in I'll be in the state, but I'll actually be down in St. George. I'm I'm speaking at the UMPA annual meeting that afternoon. That's right.

So, we'll we'll have to do this. Um I would rather I'd ra I'd like to be there in person, but I it's a it's a long ways from St. George to you. So, [laughter] true. All right. Thank you again, Dave. All right. Good night, everybody. Good night. All right. Our last discussion item. Uh best one of the day, huh? Best one of the day. That's right. I'd be a little concerned, but if anybody's played behind Cash and Sydney, they're used to slow play. So, I I'm not apologizing for how long it's taken tonight. Cash, [laughter] invite Chris Marks up to to give us an update.

You don't have to take that. Yes, he does. [laughter]

That's right. Before I get going, um, just want to recognize some supporters and fans of the golf course with us here. So, um, I've got Sheldon Priest, our superintendent, does an amazing job at our golf course to, um, make it green and playable on a daily basis. So, it's awesome. And then we've got Jiren Cannon and Cash Kristofferson, um, our PGA Pro assistants that are there. So, they're getting through the program and and becoming great professionals. So, it's awesome to have them here supporting. Um, also have my wife and my son Jacob, which are the backbone of everything I do. So they do a um especially Jake does a lot of things to make uh us survive at the golf course in a lot of ways that he doesn't get noticed at all. So it's it's awesome to have that. Um also want to recognize the golf commission and if you see the golf commission or know any of them tell them thank you because it's great to have their input and the citizens. So those people that are on there are James Hershey, Lee Bilbo, Jill Christensen, Chris Beachch, and Tom Peterson. So if you know any of them or see them, tell them thanks. It's awesome to have them be a part of it. And then last thing that I want to I always like to say in recognizing people is um just somebody from the city staff that's awesome because I get I have to work with them and there there's a lot of awesome people in this this um the staff of the city and I don't think I've

ever recognized Royce Wilkerson and Nathan before.

They are awesome. when most of the time it seems like when we have problems it's going to be on a Saturday morning when they're not working and we are in emergency because we got a big tournament going on and they save our lives and so and then they come up there at other times and they come with a smile on their face and they they're just great. So, you know, thanks from them from the golf course, but if you see them, tell them that they're great, too, because they help us a lot. Um, just want to AI and everything. So, I asked AI, I've given this report 28 times and

Holy cow.

Yeah. And I said, well, AI is new stuff, so I don't want to give the same boring reports. I said what you can ask said be I asked the eye be a city councilman in Brigham City. What do you want to know at the golf course? And so those first four questions is what came out of AI saying that you guys really want to know. And I want you to think well AI doesn't know everything because I've been figuring that out a lot. Um, if there's other thoughts in your mind, what do you really want to know about the golf course? Please start brewing those in your mind and so I can answer them towards the end and hopefully maybe I even answer them while we talk about this. That last question I threw on there, threw in there myself is, are we headed in the right direction? Um, and hopefully all of those questions get answered as we go through this presentation here. Um, just a quick snapshot. I hate graphs because you can manipulate graphs and make them look like anything you want in my opinion, but um, if you look at the rounds at the golf course, they're great. If you look at the revenue, things are moving in a in a good direction. Simple in that way. But I'm going to switch to here. Last year I gave you the number of hey 2024 we we created the most amount of revenue that we've ever generated and the fourth highest rounds and then we're like I don't know if we can ever break that you know what's going on and so we just slapped the same slide up there and crossed off some stuff and and it doesn't snow. [laughter]

Yeah. So we're in 2026 now so it's different this year. Yeah. [laughter]

Yeah. But we're already ahead. I mean, because we were open in January and we're open here in February. We're already ahead of last year at this point, you know. So, it's it's crazy what's happening. We do we know it was important though because and when we talked with um about the project coming down the canyon that we weren't going to get water for a little bit, it made us panic because our greens were drying out and so there is a balance and we we do we love being open many days but it's also we need to take care of things there too. Um, so it's fun to be able to say of all the numbers, it's the neatest to be able to report is the the most rounds that's ever been done at the golf course. Even back in the Tiger Woods days in the early 2000s where we had some big big numbers, it's just way way cool to see. So we I threw up a lot of those since the year 2000, those numbers. And the green ones represent record the highest numbers in that and the orange ones represent our lowest numbers we've ever had. And even though we're riding a wave right now of good stuff happening in golf and at our golf course, um I I always recognize that, you know, in the early 2000s when when the Tiger Wood phenomenon came along, it wasn't too many years after, we still had an economic downturn. We had things happen in 2008, 2009 when the economy went bad. there's still things that happen and it and it affects the golf course. So when we're in these riding the good waves, we have to try and prepare and do all that we can so when those other times come and we're trying to do that at this point and hope I'll share some of those with

you. But we want to be good stewards as as we're doing this and prepare. Um, one time in city council meeting many years ago, um, I talked about, hey, this was a terrible year. We had lots of rain. We lost a bunch of weekends and it wasn't so fun to say, hey, it was the revenues were phenomenal. you know, we I couldn't say it that time, but um a a city council member asked me, "Well, I would like to see what is your particip participation per day and because and I like that and I've kind of tracked that ever since of how many people are actually playing per day at the golf course because we may be rained out all the time or you know, but when we are open, are they coming?" And so we did one more time. I mean, we have big big numbers of days of being open up there close to some of the top, but at the same time, we had the highest amount of average people playing each day. So that was another record that we set was that 256 number on the bottom right. Um, I have been asking for a long time about cart paths and I'm very thankful for the support that we've had on that. We're we're making huge dents and huge strides in getting the cart path done. And I've been kind of trying to present this in an easy way at the Excel sheet, but before they put down six miles of asphalt to start the golf course and it just falls apart when it gets wet water on it every night and struggles. And so the change has been we're trying to focus on putting cement cart paths

around each tea and each green complex and we're getting there. So all the green area is where we've done and accomplished. And we used to have what I call the the red areas which like oh this is falling apart and do we look terrible and we've gotten rid of those. We do we look terrible areas. But there are still some yellows like uh that's not impressive. We don't look very good. And we're we're getting some of those. And then obviously our goal is to ultimately get it all and and have it be classy all the way around and and a good ride out there. So it um it does a lot of things to not only make our course look good, but our our golf carts get ruined more with that. Um even though things are phenomenal, there's still things we're trying to accomplish out there. There's still things we're trying to do, things we're trying to think about what's happening in the future and do we need to take care of. Um, our staff at the golf course is young and quite often it will always be young just because of the um, we have this main core right here training them, but um, our young staff, they even go on missions. they go away to college and a lot of them unless they're going into the golf business don't necessarily come back to to be at the golf course. And so I always say we we've got to get better on our staff training. I call it the whatifs. So in the bottom lefthand corner, a whatif happened this summer. uh a guy hyped up on drugs, I believe is what he was, and was wandering through the golf course, getting in all the golfers way, yelling at golfers, causing problems, and if I have young staff there, we have to have them trained on how to deal with these

things. And if we have a medical emergency or um a golf uh car gets hit by a golf ball, what do they those are the things that we got to always worry about and making sure because they can check them in, send them out, they can pull that off, but we want to make them better and stronger and that. So we're going to be working hard on that. The top right picture is many of our tea boxes because the course is 37 years old now is they tend to get domed or have problems where they're not perfectly flat. Dolphers like to start on flat areas. And so this is tea box number 10, the blue tea. And it became very domed and it was um small and shrinking. And so we're that's part of our project is to flatten out a lot of tea boxes and make them better and more playable. Um we a lot of pe people will recognize those things as as we do that. Um several of those others I'm if you want to ask me about them I'll share them with them later but I can bra I can drag on forever about awesome things. I will always when I say hopes I in the bottom right hand I will always continue to pound let's let's keep going after the cart paths and and going for it and and doing things like that. Um because we are 37 years old we get an aging infrastructure. This is an example of one of those. We basically had some stairs that were melting or falling apart because they were made of wood. And um things go bad after time. And so I'm trying to be we're trying to be good stewards that hey, I don't want to come to you one day and say, "Hey, I need a million dollars to fix a big problem." Our goal is to hey, we're doing it a step at a time and trying to always be

there ahead of the curve of of things we're doing. So liabilitywise we're good and infrastructure-wise we're good. We're just taking care of things ahead of time is our goal. Will there be some big things that we can't necessarily do that are big down the road like a building one day? You know, just different things. Yeah, there will be some stuff, but I think we'll all see that as we start reaching those points, but we'll keep pounding out things like this so we're not um in trouble there. Um, I will always beat the drum for you guys to think about getting us a new driving range. And this is a picture of our driving range. And this was a girls golf high school tournament where not everybody can fit on the range and they're lined up and always hoping to do their turn. This is the bottom right. Just a normal day of going on. It's like, oh man, this is full. And it and it's not a good driving range. It's like if the golf course I would I would give us an A minus on our quality and everything that we do. Our driving range is a solid C plus. And we we can do better. And is that hard? Is that transaction and making it happen hard? Yes, there's much more involved with it. But it can be a great thing for the community. Um there's I'd love to see if we did it. Put lights there. There's a there's not a lot of things for teenagers to do in this community on the evening times and it would bring things to for kids to do and stay out and not be in trouble. So I always like to think of the community also in that way. So enough of beating my drum there. Um, I'm going to turn and have Jiren and Cash just say a couple things about this slide and some happenings of 20126 and the next slide for us.

2026 was an incredibly active and exciting year at the golf course with events taking place all season long. We were proud to host the Utah State Amler, bringing vis visitors from across the state to Eagle Mountain in Brigham City and providing outstanding recognition for our community as the site of one of Utah's premier championships. We also hosted a national drive chip and buckt qualifier welcoming young golfers and their families from multiple states and showcasing our commitment to growing the game. Our [clears throat] junior programs remained strong throughout the year as we welcomed four high school tournaments and 18 junior tournaments, continuing to support and develop the next generation of players. Our men's association continues to be the backbone of play at the golf course and remained remained highly engaged, holding 60 daily tournaments in addition to events. This created consistent weekly activity and strong member participation throughout the season. Ladies groups also maintained a very full schedule host hosting 25 events along with 10 ladies lesson uh ladies lesson and outing nights focused on instruction fellowship and growing participation in the game. In add in addition we hosted nine state tournament events further highlighting the quality and reputation of our facility. Altogether, the course was busier than ever with organized play, tournaments, and community events from early spring through late fall, demonstrating steady use, strong engagement, and vibrant golf throughout the season. Along with the amazing events that we got to hold this year, we were recognized a couple times um on the national and state level. Um, we got to do an article in the PJ magazine this year on customer engagement and building

relationships. Pretty amazing. Um, and then on the state level, the golf course won merchandiser of the year uh for public golf courses. Along with the golf course, our superintendent Sheldon Priest was a finalist for superintendent of the year. Um, so we're getting to hold amazing events and throwing a lot of a lot of recognition that way, which is amazing. Thanks guys. Appreciate that. It's awesome to have just great staff and a great team around. Um want to quickly talk about we're um as we've met with the golf commission and um we are going we are going to change the prices at the golf course again. We we as we presented that and talked with them with the golf commission about that um this is something they do support our I call it the rack rate pricing. So rack rate is hey what's your highest price that you charge when a customer walks in the door and our and that was $56 in 2025 and we're going to change that to be at $60 up $4 for our highest price. That's 18 holes with a golf cart. And so basically the way that bears out is a dollar per nine for on the green fee and a dollar per nine on the golf cart. The um the other things that would go along with that is so people ask well what about your season pass? What about your punch pass? Proportionally everything would just match that. Um, we continue to try and watch out for our citizens and our local supporters and we do that through the

punch passes because we have some majorly disoint uh discounted ways to do that and through the season passes. So, do our locals pay less? Yes, they do when they become part of things there. And but we want to stick with this rate um because it lets our people who come and visit the town not only know that we're a quality course because of the price we charge, but um also we're not we the pricing model we are at all the time is we're either at market or just barely below market around courses around us. And according to what we're seeing, this will be in that same position that we've that we've always been

per person.

That is a per person rate. Yes. Um love to show this picture because when when most of us um look at a picture like this, we think, "Oh, Chris is throwing up another pretty picture of the golf course." Um, but we we love to be picky on ourselves and I hope we are and and as you hear things I ask about the golf course, will you please always approach us and share those things? So, when Sheldon and I see this picture, I don't know if I can get it, but you can see my mouse right there is a not pretty spot. Okay? And even though things are pretty and things are great, we see those things and we want to hear and see those things. So when if citizens approach you about the golf course, please come and tell me. Please come and share those things because honestly that's how we become better is sometimes when we get criticized, we can become better from it and and that's how we hear things. So please do it and we I ask that of the council if you'll do that for us. would appreciate that. Um, hopefully AI got you we answered many of these questions and you feel good about them. I I feel like they that we can answer yes to those questions. Um, but I do want to ask if there are other questions or anything you would like clarified with anything that we've said so far. Oops. Council, I had a question. Um, when you were talking about the daily uh amount of golfers that we have, days we're open and how many rounds we have, what's the maximum? I mean, you're going to be limited by time.

How close are we to the maximum on there? I know that's the days vary, but you know what I mean, right? Chris should answer that we're over it. [laughter] There are days. So when we maximum excellent if you make somebody mad because play so slow you're over it. So frankly

so we did lower we had 8 minute tea times last year and on the weekends and um on Fridays we changed that to nine nine minutes which you would think oh we got less people that we can get in there because it was nine minute tea times but obviously our numbers went up in that way. Are there ways to get more and more people on the golf course? Yes. Uh there are, but there's also ways to upset a lot of people. And so I'm I always try and remember that even though we're recognized as a great golf course around the state, we are serving our community. We're serving Brigham City. And if you see, I called the old boys group in the morning. Being able to cater to them and take care of them is actually an important part of Eagle Mountain and making its identity. Um, so could I get more and more? Yes. But it's also we want to babysit our locals. Oh, I'm not saying just [clears throat]

how I'm just curious on how full are we on those not increasing the maximum but on those days that

so many most of the days many of those days are every tea time is is taken um we could we could get more we did the 68,000 rounds Davis County Golf Course I talked to them they did 101,000 rounds they have the same amount of daylight as us Um, are there different ways to go about that? Everybody complains about them also, but there's there's different ways to do it, but yes and no. Good question. If he put fixes all the tea blocks though, while we're waiting playing poison, you might actually be able to play and beat me. So, yeah. A lot better than with those Thank you.

Yeah, I think that made a big um Yeah, we take Sheldon's. How many more did you get this fall? So, 30 this fall. There was 70 something last year. I mean, there's just lots and lots and it's Thanks for noticing. All right. Oh, thanks Chris. Thank you. Thanks for letting us be at this golf course. We love it and we love the support of this community and everything about it. So,

I I think it's I think it's easy to say that the community loves the golf course and loves the people that are out that are at the golf course managing it as well. So, thank you for what you do there and those that support you that are behind you and those that couldn't make it tonight. That's right. [laughter] Right. Thank you. All right. Thanks, council. We need a motion to move into close session to discuss the purchase, exchange or lease of real property. I think that's the only thing. Second. Okay, we have a motion by Council Member Smith and a second by Council Member Jensen. We'll roll call into this and we'll start with Matt and move to his right. Matt's a yes. And I Ryan's eye.

All right. Thank you. We'll be moving in close session. Thanks again, guys. Thanks, Chris.