September Board Meeting
MOUNTAIN PARKS ELECTRIC, INC.
Regular Meeting of the Board of Directors
September 14, 2017
Present: Greg Norwick, Richard Zieff, Jeff Hauck, Justin Fosha, Liz McIntyre, Peggy Smith, Carl Trick, Tom Sifers, Scott Simmons, Rich Trostel, Stacie Dellamano, Rob Taylor, Maura Ransom, Joe Palmer and Levi Williamson. Reporter, Joe Smyth, entered the meeting at 9:10 a.m.
Call to Order
President Greg Norwick called the meeting to order at 8:00 a.m.
Norwick announced that the October Board meeting will be his last as a Director.
Determination of Quorum
A quorum was declared.
There was no public comment.
The Board reviewed minutes from the August 10, 2017 meeting.
MOTION: Director Smith moved to approve the minutes of the August 10, 2017 meeting as presented. The motion passed unanimously.
Bills for Payment
The Board reviewed the list of cash disbursements for August, 2017.
MOTION: Director Trick moved to ratify the August, 2017 cash disbursements from general funds per the cash disbursement list presented to the Board. The motion passed unanimously.
Attorney Summary Fees Report
The Board reviewed Attorney Williamson’s fees summary report for August, 2017.
MOTION: Director Hauck moved to approve Attorney Williamson’s report. The motion passed unanimously.
The General Manager’s Report as prepared by Tom Sifers was reviewed. Tri-State will not increase its wholesale rate in 2018. Director Trick reported on his attendance at the regular meeting of the Tri-State Board of Directors. He reported on Tri-State’s rate stabilization efforts. Tri-State is moving forward on joining SPP. Tri-State will no longer offer its demand response and energy shaping products. Tri-State extended its Colorado River WAPA power contract to 2057 at $29.67/MW. Trick reviewed key 2018 Tri-State budget items. PSCO requested permission from the PUC to close its Comanche coal fired plant. Tri-State set a new all-time high peak on July 6 at 4:00 p.m.
Reporter, Joe Smyth, entered the meeting at 9:10 a.m.
Sifers reported on his attendance at area county fairs. He presented results of the July CAMU survey. Western United refunded patronage to MPE of approximately $18,000.00. The Town of Fraser LED conversion is complete. Staff will meet with the Town of Grand Lake regarding LED conversion. Sifers reported on MPEI’s “5th Quarter” and other tail gate parties for area high schools. Ransom, Trostel, and Sifers reported on their attendance at the Pot & Power conference.
The Finance Report as prepared by Dellamano was reviewed. Dellamano reviewed 2017 financials through July. She reported on her preparation of the 2016 IRS 990. Dellamano and the Board discussed ideas for reducing and/or delaying future retail rate increases. She presented July financials for the Charitable Trust, the Education Trust, and the Green Power Fund. She reviewed select CFC KRTA ratios.
MOTION: Director McIntyre moved to approve the Finance Report as presented. The motion passed unanimously.
President Norwick recessed the meeting at 10:49 a.m. and reconvened at 11:00 a.m.
Kevin Brehm, Senior Associate with Rocky Mountain Institute (“RMI”), entered the meeting.
Joe Smyth left the meeting.
MOTION: Director Trick moved to go into executive session regarding confidential pricing information related to the Solar RFP, with the following in attendance: All directors and staff present at the meeting, Kevin Brehm and Attorney Williamson. The motion passed unanimously.
Jon Fitzpatrick and Mat Elmore, with Microgrid Energy, entered the meeting during executive session.
Fitzpatrick, Elmore and Brehm left the meeting.
MOTION: Director Trick moved to come out of executive session. The motion passed unanimously.
President Norwick recessed the meeting at 12:05 p.m. for lunch and reconvened at 1:33 p.m.
Joe Smyth re-entered the meeting.
Action Item #4
MOTION: Director Trick moved to authorize General Manager Sifers to execute a Letter of Intent with Microgrid, contingent on approval by attorney Williamson. The motion passed unanimously.
Office Services Report
The Office Services Report as prepared by Ransom was reviewed.
The Engineering Report as prepared by Simmons was reviewed. He reported on Sandridge Energy’s proposed services and upgrades to MPEI’s system that will be necessary to serve the load. He reported on pole attachment issues. Simmons and the Board discussed CAF II funds.
Operations & Safety Report
The Operations and Safety Report as prepared by Trostel was reviewed. He reported on employee driver license point reductions. The Rainbow Lakes project is on hold while the contractor helps in Florida. There were no lost-time accidents. There were three near misses reported.
MOTION: Director Trick moved to accept the Safety Report. The motion passed unanimously.
Member Relations and Communications Report
The Member Relations and Communications Report as prepared by Taylor was reviewed. Taylor reported on MPEI’s booths at county fairs. He reported on his efforts to increase applications for the D.C. trip and energy camp.
Information Technology Report
The Information Technology Report as prepared by Palmer was reviewed.
Human Resources and Administration Report
The Human Resources and Administration Report was reviewed.
Board Open Forum & Associated Board Reports
Richard Zieff reported that Western United continues to maintain strong margins.
Jeff Hauck reported on his attendance at the regular meeting of the CREA Board of Directors. CREA will pursue legislation to help electric co-ops bring broadband services to their members.
Action Item #1
Sifers presented policies B-1 and B-2.
MOTION: Director Trick moved to approve the Policies as presented. The motion passed unanimously.
Action Item #2
Approve Work Orders
Sifers presented $1,336,638 worth of work orders, through June.
MOTION: Director Trick moved to approve the work orders as presented. The motion passed unanimously.
Action Item #3
Broadband RFP Addendum
Palmer presented bids for the Broadband RFP Addendum. Palmer recommends accepting the HR Green bid.
MOTION: Director Zieff moved to accept the HR Green bid of $95,000.00 for a Feasibility/Business Plan. The motion passed unanimously.
Action Item #5
RUS Loan Documents
Williamson presented the following loan documents (the “Loan Documents”) for a $30,311,000.00 loan from the Federal Financing Bank (“FFB”), to be guaranteed by the United States of America (the “Government”), acting through the Administrator of the Rural Utilities Service (“RUS”): RUS Loan Contract; FFB note in the amount of $30,311,000.00; Reimbursement Note; and the Restated Mortgage and Security Agreement by and among MPEI and the Government.
Williamson presented a resolution to borrow $30,311,000.00 from FFB and to authorize execution of the Loan Documents.
MOTION: Director Trick moved to approve the resolution as presented. The motion passed unanimously.
Action Item #6
Wage and Benefits
Sifers presented an analysis of wages for 2018. He presented an analysis of MPEI’s benefits and four options for 2018 health benefits.
MOTION: Director Zieff moved to approve option A as presented. The motion passed unanimously.