July 2022 Board Meeting Minutes

MOUNTAIN PARKS ELECTRIC, INC.

Regular Meeting of the Board of Directors

Granby, Colorado

July 14th, 2022

8:00 A.M.

Attendance

Present: Liz McIntyre, Jeff Hauck, Mark Volt, Cray Healy, Justin Fosha, Mark Johnston, Scott Simmons, Joe Palmer, Adam Paulson, Leah McClain, Rob Taylor, Adam White, Jessica Rahn, Stacie Dellamano, and Bryson Fredregill, all via video conference. Directors Kristen Taddonio and Carl Trick were absent.

Call to Order

President Liz McIntyre called the meeting to order at 8:00 a.m.

Determination of Quorum

A quorum was declared.

Public Comment

Elizabeth Bauer, West Grand School District Superintendent, and Chris Michalowski joined the meeting.

Ms. Bauer addressed the board regarding a West Grand School District project to replace existing fixtures across the district with LED fixtures. Bauer requested the MPEI Board consider granting approximately $5,000.00 to the district to replace its outside fixtures.

Bauer and Michalowski exited the meeting.

Minutes

The Board reviewed minutes from the June 9, 2022, meeting.

MOTION: It was properly moved, seconded, and carried to approve the minutes for the June 9, 2022, board meeting as presented.

Attorney Summary Fees Report

The Board reviewed Attorney Williamson’s fees summary report for June 2022.

Manager’s Report

General Manager Johnston reported on the status of the community solar project. Johnston notified Cloudbreak of the FERC ALJ’s ruling that Tri-State’s Policy 119 is discriminatory and the impact that could have on the community solar project if the ruling is adopted by the FERC. Cloudbreak continues to work on acquiring rights to prospective sites. The project remains on “hold” pending resolution of Tri-State’s Policy 119 at the FERC and final site identification. Johnston provided a summary of the arguments in the reconsideration briefs filed by the parties.

Johnston reported on the status of the FERC Tri-State CTP matter. Oral arguments related to post-hearing briefs remain scheduled for July 26 but may still be waived. The ALJ is expected to issue an order withing 90 days of oral arguments.

Johnston reported on the status of the FERC Tri-State Partial requirements matter. The ALJ filed a Report of Contested Settlement with the FERC. United Power, Inc. opposed the settlement, and the ALJ declined to certify a contested settlement. Johnston anticipates that the FERC will act on the report within 90 days, though it is not required to do so.

Johnston reported on the status of MPEI’s fiber access agreement, which remains in legal review.

Johnston reported on member engagement in MPEI’s SmartHub quarterly surveys. Johnston presented two third-party proposals for multi-year annual member surveys, which could provide an additional measurement of member satisfaction. The primary differences between the options presented are the degree to which MPEI can tailor survey questions and the cost. The board discussed the different survey processes, including which would yield the most useful results. The board directed management to include a third-party survey in the 2023 budget.

Johnston provided answers to questions posed by Director Taddonio at the June meeting regarding member voting and the information available to entity and joint members. Johnston also reported on MPEI’s participation in 5th Quarter, an electric bike test drive event, and the possibility of Johnston’s participation on the University of Colorado LEEDS School of Business Customer Experience Advisory Committee.

Safety Report

General Manager Johnston presented the Safety Report. He reported on accidents, incidents, near misses, and damage. There were no accidents in June.

MOTION: It was properly moved, seconded, and carried to accept the Safety Report as presented.

President McIntyre recessed the meeting at 9:00 am and reconvened at 9:15 am.

Discussion/Action Item A: CFC LOAN RESOLUTION

Consideration of the CFC loan was tabled. The parties are working through legal review of the transaction documents.

Discussion/Action Item B: Policy B-3 Financial Management

Consideration of Policy B-3 was tabled. Staff is waiting to hear from MPEI’s auditors regarding Policy B-3.

Discussion/Action Item C: Policy B-14 MPEI Work Flow Procedures – Work Orders

General Manager Johnston presented revised Policy B-14. Staff answered questions regarding project design and Work Order closing.

MOTION: It was properly moved, seconded, and carried to approve Policy B-14 as presented and to make the policy public.

Discussion/Action Item D: B-15 Work Flow Procedures - Inventory

General Manager Johnston presented revised Policy B-15. Staff answered questions regarding inventory supervision.

MOTION: It was properly moved, seconded, and carried to approve Policy B-15 as presented and to make the Policy public.

Discussion/Action Item E: Policy Ratification of June’s Agenda

General Manager Johnston presented actions from the June Regular Meeting of the MPEI Board of Directors for ratification. Attorney Fredregill recommended that these items be tabled and ratified at the August meeting. Consideration of the items for ratification was tabled.

Discussion/Action Item F: Selection of NRECA Regional Meeting Delegate

General Manager Johnston asked whether the board would like to appoint a delegate for the NRECA Regional Meeting. The board discussed whether to appoint a delegate.

Engineering Report

Manager Simmons presented the engineering report to the Board. Simmons updated the board on the status of the Highway 125 Project and fiber deployment. Simmons answered questions regarding the impact of mudslides on the Highway 125 Project.

Operations Report

Manager Paulson presented the Operations Report. Paulson reported on the Project 125 Pre-construction Meeting. Paulson reported on a member’s efforts to clear vegetation from facilities owned by that member. Paulson reported on the status of Green Mountain Reservoir pole replacement.

Finance Report

Manager Dellamano presented the Finance Report. Dellamano pointed out a large cost and associated revenue mismatch, where the former booked in May and the latter in June. She answered questions about taxes on community solar projects.

Information Technology Report

Manager Palmer presented the IT report. Palmer reported on Windy Gap meter testing.

Member Relations & Communications Report

Manager Taylor presented the Member Relations and Communications Report. Taylor reported on MPEI’s participation in the Granby Parade. He also reported on employee training to enhance in-house heat pump expertise. Taylor discussed MPEI’s upcoming participation in the National Night Out, North Park Fair, and Middle Park Fair. He also reported on MPEI’s continued efforts to enhance its digital communications.

Human Resources & Administration Report

Manager Rahn presented the Human Resources and Administration report. Rahn provided an update on the employee engagement survey. MPEI has created a committee to review and analyze the results of the employment engagement survey. Rahn anticipates presentation of the committee’s analysis at the August meeting. MPEI continues to struggle with turnover and recruiting.

Bills for Payment

The Board reviewed the list of cash disbursements and credit card bills for June 2022.

Emergency Business

Chris Michalowski entered the meeting.

The board discussed the West Grand School District request for funding of its outdoor lighting LED conversion project. General Manager Johnston stated that the conversion quote of $5,114.69 expires on July 28. Tri-State will provide approximately $1,700.00 for the project through reimbursement to MPEI. The board discussed the potential application of rebates.

MOTION: It was properly moved, seconded, and carried to approve use of the Community Fund to fund the West Grand School District LED conversion project as presented.

The board discussed who should serve as MPEI’s Alternate Delegate to Western United.

MOTION: It was properly moved, seconded, and carried to appoint Justin Fosha as MPEI’s Alternate Delegate to Western United.

The board discussed rescheduling the Special Meeting to discuss director districts to August 16, 2022, at 10:00 a.m.

MOTION: It was properly moved, seconded, and carried to reschedule the Special Meeting to discuss director districts to August 16, at 10:00 a.m.

Board Open Forum

Jeff Hauck reported on his attendance at the regular meeting of the CREA Board of Directors. Hauck reported that he will be leaving the MPEI service territory at the end of the year but intends to continue serving as director until that time.

General Manager Johnston reported on the Tri-State regular meeting. Johnston answered questions about Tri-State’s bond buy-back strategy and its utilization of commercial paper. Tri-State will attempt to buy back $100 million in bonds to reduce its interest costs.

Director McIntyre reported on an inquiry into the Green Power Advisory Committee’s interest in incentivizing income-qualified all-electric workforce housing. Discussions regarding GPAC’s participation continue, including use of the Community Fund.

Director McIntyre reported on her attendance at the Tri-State Rate Committee meeting. The committee discussed the FERC reserved issues and how the outcome of those issues may impact rate design. McIntyre discussed the timeline for rate development and approval. She discussed the challenges arising from designing a rate without clarity regarding member exits from Tri-State.

MOTION: It was properly moved, seconded, and carried to go into Executive Session for consideration of employee housing timeline, Winter Park land discussion, partial requirements power supply, tuition reimbursement, personnel matters, and the Buffalo Creek project with all Directors, Attorney Fredregill, and HR Manager Rahn present for the entire executive session. Other staff present at the meeting were present for those portions of executive session excluding the discussion of personnel matters.

MOTION: It was properly moved, seconded, and carried to exit executive session.