August Board Meeting
MOUNTAIN PARKS ELECTRIC, INC.
Regular Meeting of the Board of Directors
August 15, 2018
Present: Jeff Hauck, Richard Zieff, Carl Trick, Justin Fosha, Liz McIntyre, Kristen Taddonio, Mark Johnston, Rich Trostel, Rob Taylor, Jessica Rahn, and Bryson Fredregill. Director Mark Volt was absent.
Call to Order
President Jeff Hauck called the meeting to order at 8:01 a.m.
Determination of Quorum
A quorum was declared.
Zach Owens and Addison Phillips, both of the Colorado Energy Office, gave a presentation on MPEI’s EV charging rates. Owens and Phillips discussed with the board the role of utilities in the Colorado Electric Vehicle Plan. Owens and Phillips presented a Gas to Grid study and Managed Charging Program Study. Owens, Phillips, and the board discussed the assumptions of the studies and reviewed a rate comparison with Holy Cross and White River Electric Association. Owens and Phillips proposed a new EV rate structure. The board explained that the current EV rate structure is designed to pass through of MPEI’s costs on Level 3 chargers without any additional margin and invited Owens and Phillips to attend the portion of the meeting where the EV tariff would be discussed. Also participating in the discussion were Michael Bruck from the Town of Fraser and Mara Owen from the Town of Winter Park.
Owens, Phillips, Bruck and Owen exited the meeting.
The Board reviewed the meeting minutes from the July 12, 2019 meeting. Director Zieff requested that future minutes state the full title of each policy reviewed by the board.
MOTION: It was properly moved and seconded to approve the minutes of the July 12, 2019 meeting as presented. The motion passed unanimously.
Attorney Summary Fees Report
Attorney Fredregill reported that Attorney Williamson had e-mailed the fees summary report to the board earlier that morning. Attorney Fredregill reported on his attendance at the NRECA Legal Seminar. He reported on presentations related to FEMA, cooperative governance, crisis communication, vegetation management, pole attachment agreements, distributed generation risks, and employment law issues.
The General Manager’s Report as prepared by Johnston was reviewed. Johnston updated the board on franchise agreement negotiations with the Town of Fraser.
Dan Lubar entered the meeting.
Johnston reported on his attendance at a presentation of the Ft. Morgan renewable pyrolysis project. He also reported on his attendance at the CREA Manager’s meeting. He discussed potential issues for the 2020 legislative session.
President Hauck recessed the meeting at 9:25 a.m. and reconvened at 9:33 a.m.
Discussion/Action Item C: Tariff 201 Rate Classification and Assignment – Section 202.07
Manager Johnston presented Tariff 201 Rate Classification and Assignment Section 202.07. Johnston explained that the tariff was designed as a pass through of MPEI’s costs on Level 3 EV chargers. In this rate there is no margin for MPEI. The tariff is designed to encourage use while recouping MPEI’s costs.
MOTION: It was properly moved and seconded to approve the tariff as presented. Director Taddonio offered a friendly amendment to change the Service Availability Charge, per meter in Section 202.07.C to “$1.50 per installed kW.” The amendment was accepted by all and the motion passed unanimously.
Discussion/Action Item D: Tariff 330 Net Metering
Manager Johnston presented a revised Tariff 330 Net Metering. Johnston explained that the purpose of the revision was to reconcile the tariff with the tracking capabilities of the new NISC software.
MOTION: It was properly, moved and seconded to approve the amendment as presented. Director Taddonio offered a friendly amendment to revise the title to “330.00 Net Metering For Systems Up To 25 kW” and to revise Section 330.02 so that subsection 1 under “Eligible Generating System” reads as follows:
“1. Has a total aggregate nameplate generating capacity, from single or multiple generators for systems up to 25 kW…”
The amendment was accepted by all and the motion passed unanimously.
Discussion/Action Item E: Board Policy A-1 MPE Educational Fund
Manager Johnston presented a revised Board Policy A-1.
MOTION: It was properly moved, seconded, and carried to approve Board Policy A-1 as presented.
Discussion/Action Item F: Board Policy A-2 MPE Charitable Trust
Board Policy A-2 was pulled for consideration at a later date.
Discussion/Action Item G: Board Policy A-3 Mountain Parks Services
Manager Johnston presented Board Policy A-3.
MOTION: It was properly moved, seconded, and carried to approve Board Policy A-3 as presented.
Discussion/Action Item H: Board Policy A-4 Policy Formation and Approval
Manager Johnston presented Board Policy A-4. The board revised Section II.C to read “Communications: Those policies which pertain to communications.” The board also revised section II. I to read “Copies of all policies adopted by the Board will be distributed and maintained on a current basis for each member of the Board and staff in a systematically indexed policy manual.”
MOTION: It was properly moved, seconded, and carried to approve Board Policy A-4 as revised.
Discussion/Action Item I: Board Policy D-8a and D-8b Contested Director Elections
Manager Johnston presented Board Policies D-8a and D-8b for discussion. The board discussed the exclusive use of a third party for handling of contested director elections and the retention of the Election Supervisory Committee. The board directed counsel to revise the policy to provide for handling of contested director elections exclusively by a third party and to retain the Election Supervisory Committee. The board further directed counsel to provide a list of election related deadlines.
Discussion/Action Item J: Rural Electric Savings Program (RESP) through RUS Board Resolution
Manager Johnston presented the Resolution Establishing the Energy Efficiency Program, which authorized establishment of the energy efficiency program and application to RUS for $10,000,000.00 to carry out the program.
MOTION: It was properly moved, seconded, carried to approve the Resolution Establishing the Energy Efficiency Program as presented.
The Board reviewed a request to appoint Seth Portner to the Green Power Advisory Committee.
MOTION: It was properly moved, seconded, and carried to appoint Seth Portner to the Green Power Advisory Committee.
The Board reviewed the Notice of NRECA Region 7 Annual Meeting. The Board also reviewed the Notice of CFC Annual Meeting.
MOTION: It was properly moved, seconded, and carried to appoint Dick Zieff and Mark Johnston as the MPEI delegate and alternate, respectively, for the NRECA Region 7 Annual Meeting and CFC Annual Meeting.
The Engineering Report as prepared by Simmons was reviewed. Simmons reported on the status of the River Run Ranch project. Phase 1 is open, and Phase 2 is 50% complete. Simmons also reported on the Smith Creek Crossing development.
Operations & Safety Report
The Operations Report and Safety Report as prepared by Trostel was reviewed. Trostel reported on the status of meter testing for functionality and accuracy. Trostel also reported on the status of pole testing.
As of June 30, 2019, MPEI employees have worked 284,821 hours without a lost time accident. Trostel reported on the results of an unannounced Rural Electric Safety Achievement Program onsite observation. Trostel reported on a near miss and a recordable injury.
MOTION: It was properly moved, seconded, and carried to approve the Safety Report.
Discussion/Action Item M: Visionary Broadband/ Mammoth Networks
MOTION: It was properly moved, seconded, and carried to go into executive session to receive confidential testimony regarding confidential negotiations and to receive attorney-client privileged advice regarding personnel matters with the following in attendance: All directors present at the meeting, Mark Johnston, Rich Trostel, Jessica Rahn, Rob Taylor, Attorney Fredregill, Brian Wagner, and Aaron Maccarelli. Mr. Wagner and Mr. Maccarelli exited the meeting prior to any discussion of personnel matters.
MOTION: It was properly moved, seconded, and carried to exit executive session.
President Hauck recessed the meeting for lunch at 12:50 p.m. and reconvened at 1:26 p.m.
Discussion/Action Item K: 401(k) Plan
MOTION: It was properly moved, seconded, and carried to enter executive session to receive confidential testimony and attorney-client privileged advice regarding a personnel matter and the 401(k) plan.
MOTION: It was properly moved, seconded, and carried to exit executive session.
Discussion/Action item L: Retention and Recruitment Proposal: Detailed Options
Jessica Rahn presented proposed modifications to MPEI’s retention and recruitment plan. She also reviewed NRECA’s 2020 Benefits Renewal Information and Employers Council REA Compensation and Benefits Survey results. The comprehensive retention and recruitment proposal is designed to reduce MPEI’s turnover rate to 7%. Rahn discussed several aspects of the proposal including wage and salary philosophy, health plan, retirement plan, bonuses, increased staffing, increased training budget, succession planning, updates to the Human Resources Policies, paid time off, and flexible scheduling. Rahn presented the proposal’s effect on the budget.
The Finance Report as prepared by Dellamano was reviewed. Manager Johnston highlighted that residential sales are up 19%. Revenue and margins are above projections for June 2019. He reviewed the Comparative Department Statement and reported a total variance of $58,419.40 below budget through June 2019.
Information Technology Report
The Information Technology Report as prepared by Palmer was reviewed. Manager Johnston updated the board on NISC implementation.
Human Resources and Administration Report
The Human Resources and Administration Report as prepared by Jessica Rahn was reviewed. There were no questions.
Member Relations and Communications Report
The Member Relations and Communications Report as prepared by Taylor was reviewed. Taylor reported the results of the electric bike giveaway. He also reported on MPEI’s participation in the National Night Out and on discussions with the East Grand School District Board regarding the electric bus grant opportunity.
Bills for Payment
The Board reviewed the list of cash disbursements for July 2019.
Board Open Forum & Associated Board Reports
Director Zieff reported that there was no Western United meeting this month
Director Taddonio reported on her attendance at a presentation on the new Tesla megapack battery. She reported that the batteries come with a 15-year warranty and are microgrid capable.
Manager Johnston reported on his attendance at the regular meeting of the Tri-State Board of Directors. He discussed the 2020 budget and Responsible Energy Plan update. He provided a renewable energy RFP update. Johnston also reported on the status of Tri-States FERC filing. Tri-State had sought member letters in support of its filing. Tri-State’s Contract Committee reviewed five different straw man proposals for partial requirements contracts.
Director Hauck reported that there was no CREA meeting this month.
The board discussed investigating the value of association property in Winter Park.
MOTION: It was properly moved, seconded, and carried to authorize staff to investigate the value of MPEI’s property in Winter Park.
The Meeting adjourned at 4:47 p.m.