MOUNTAIN PARKS ELECTRIC, INC.
Regular Meeting of the Board of Directors Granby, Colorado
June 10, 2021
Present:, Jeff Hauck, Carl Trick, Richard Zieff, Mark Volt, Liz McIntyre, Kristen Taddonio, Justin Fosha, Mark Johnston, Joe Palmer in person, Rob Taylor, Donn Finn, Jessica Rahn, Stacie Dellamano and Levi Williamson via Zoom Meetings.
Call to Order
President Jeff Hauck called the meeting to order at 8:00 a.m.
Determination of Quorum
A quorum was declared.
General Manager asked to table the meeting minutes for April and May and New service costs until July. Asked to remove stranded assets, and insurance option and add CREA attorney discussion as well as housing options to executive session.
MOTION: It was properly moved, seconded, and carried to bring back minutes next month
Attorney Summary Fees Report
Attorney Williamson didn’t have anything for open session, no questions were asked by the board.
General Manager Johnston reported that staff met with RUS regarding community solar project. RUS indicated that since it is considered generation it doesn’t fall under our current loan. New loan would have to be done and could take 4-8 months. MPE is looking at other financing options. One option would be to have ISI build the project and MPE would lease the project with an option to buy it. This option would allow MPE to take advantage of the investment tax credit, reducing the overall cost of the project.
MPE executed agreements related to design and project management for the fiber project with Connexon. Connexon has suggested a July 6-7th kick off project meeting. RUS will not require a new contract unless MPE makes a route change, contractor change, or the project cost increases significantly. Conexon estimates the Phase 1 project costs will be less than the original estimate, based on lower material cost. MPE will construct and own the backbone, Connexon will potentially lease the fiber. Any lease will be provided to the Board for review and approval.
Don Case entered the meeting. Granby lineman, to share his experience finding a house in Grand County. Mr. Case had three weeks to move and get settled in. Housing market skyrocketed in the six months that he has been working for Mountain Parks Electric. Housing allowance ceases if the employee buys a house. This can be seen as punitive, if an employee decides to purchase a house. Mountain Parks Electric invests a lot of money in training linemen and could potentially lose them if linemen struggle to make ends meet after losing their housing allowance. Board discussed options that will be addressed with Manager Rahn’s report
Manager’s Report Continued
Winter Park survey will be complete by June 18th. Initial title commitment received, buyer requested an extension of the due diligence period until next Friday. Board will consider a resolution under action items to approve release of the property from the RUS lien. This is necessary to sell the property.
At Tri-State manager’s meeting on Monday, Duane Highly discussed the following:
- Their offices will open June 14th.
- As part of their cost reduction plan a hiring freeze will be implemented.
- Board policy 125 will be reviewed by staff and Tri-State Board after FERC rejected the filing.
- Tri-State filed a request with FERC to raise their debt limit.
- Partial requirements open season was completed in May. Three members submitted projects, totaling 209 MWs for consideration.
- Second technical conference was held to continue reviewing the Contract Termination Payment methodology. Next settlement conference scheduled for June 16th.
- Fraser contacted MPE and ISI related to a solar project at their Waste Water facility. They would like to build in conjunction with solar cares and community solar.
- CREA CEO meeting talked about where their respective cooperatives would be in five years. CEOs provided very diverse answers to question.
- CU graduate student presented her finding related to construct of a micro grid to serve MPE member in the Laramie River valley. Many interesting issues raised and additional work needs to be done. Presentation will be sent to the board.
The Safety Report as prepared by Safety Coordinator Lee was reviewed.
MOTION: It was properly moved, seconded, and carried to approve safety report.
Discussion/Action Item A: E-3 Harassment Based on a Person’s Sex
Attorney Williamson reviewed the policy and made changes.
MOTION: It was properly moved, seconded, and carried to approve E-3 as presented and make it public
Discussion/Action Item B: E-4 Deferred Compensation Plan
Attorney Williamson reviewed this policy with no changes.
MOTION: It was properly moved, seconded, and carried to approve E-4 and make it public.
Manager Dellamano will provide the directors with more information on this.
Discussion/Action Item C: Sale of Vasquez Road Property
Resolution to allow Mountain Parks Electric to request to RUS to remove the lien on this property.
MOTION: It was properly moved, seconded and carried to approve the resolution detailed in the secretary certificate.
Discussion/Action Item D: Approval of Medical Renewal
Staff discussed the July 1st of MPE medical insurance. The proposal is referred to as a 9/6 renewal. This means the policy covers the six months through December 2021, as well as payment of any unpaid claims from April through June 2021.
MOTION: It was properly moved, and seconded to approve Medical insurance renewal.
Discussion/Action Item E: East Grand School District Electric Bus Request
East Grand School District is requesting MPE assistance to acquire a Vehicle to grid bus. MPE has asked for additional information, including the level of the school board’s engagement and if they have any funds that could be contributed. State Grant request has a deadline of the end of July. MPE is unsure if Tri-State will be willing to contribute. The request currently is $175,000.
MOTION: It was properly moved, and seconded to table this request until July.
Engineering report prepared by Manager Simmons reviewed. Director McIntyre mentioned reliability team may want to contact Poudre Valley on how they are obtaining their data regarding performance. Director Trick inquired about fire management devices and if they will impact our insurance premiums.
The Operations report reviewed, Manager Finn discussed bird migration changes in Kremmling and how it is affecting our lines in the area.
Manager Dellamano’s financial report was reviewed. This time last year there were big discrepancies due to COVID, this year things are more normal. Lobby opened on Monday. Director Taddonio asked if it would it be possible to do a comparison of the last five years, to cancel out some of the discrepancies.
Information Technology Report
The Information Technology Report as prepared by Manager Joe Palmer was reviewed. Manager Palmer reported about another high profile hack. Backups have been started and are up and running.
Human Resources and Administration Report
Manager Rahn’s report reviewed. More details for employee housing will be discussed in executive session.
Member Relations and Communications Report
The Member Relations and Communications Report as prepared by Manager Taylor was reviewed. Electrify everything video has been released. Everything is ready for the annual meeting. Net metered members should avoid Peak hours which is typically in the evenings. Whisky Hill Solar ribbon cutting date will be sometime this summer.
Bills for Payment
The Board reviewed the list of cash disbursements for May 2021.
Board Open Forum
Tri-State: Director Trick reported they had strategic planning session, constraints of the system of getting to the carbon free situation transmission will need to increase by 45-50 EV’s to meet that need. Nest thermostats can help with the grid in a RTO situation these would be valuable if they can be aggregated. No talk of reliability and resilience. Will need to increase generating capability by 170% to decarbonize the economy, tax credit only work for profit IOU’s not cooperatives. NRECA is on board with Tri-States stranded assets, and there will be a resolution committee meeting sometime in June to vote on the resolutions. Rifle plant is going to close. Holy Cross is interested in buying it. Bylaw amendments moving from 65% to 50% partial requirements, failed at the board level but can still come up from the floor level. The limiting non-utility members to 10 passed unanimously. Tri-State is going to try to be the aggregator to control virtual generation source and RTO. Policy 115 prohibits us from doing this like Tri-State is going to do. National energy reliability council is predicting that California will be energy short for the summer. Colorado is also at risk. Lake Powell is predicted to below the power pool by 2022.
Western United: Director Zieff reported that there is nothing since their last meeting. $34,000 in capital credits received
Director Zieff also reported that he took 991.1 risk oversite assessment that he is going to forward to the board with ideas for the board.
CREA: Director Hauck reported that CREA endorsed the stranded asset passed on to district meeting. Director Hauck drove the Tesla in the Memorial Day parade. San Luis annual meeting talked about $6 fire mitigation service rider.
No Old Business Reported
Members have asked about getting their Christmas tree from Mountain Parks Electric’s right of way. Other Cooperatives have mentioned asking members to help with maintaining right of way. Mountain Parks Electric doesn’t own the trees, forest service would have to approve this.
Mountain Parks Electric Meeting adjourned for Mountain Parks Services Meeting.
Mountain Parks Electric Meeting called back to order at 12:42
MOTION: It was properly moved, seconded and carried to go into executive session a to discuss Employee Housing, Education Fund, CREA Attorney meeting, FERC Settlement and Options for Tri-State rate reduction.
Carl Trick left the board room before FERC discussion regarding CTP settlement with Tri-State