HIGHLINE ELECTRIC ASSOCIATION REGULAR MEETING OF THE BOARD OF DIRECTORS September 21, 2017

Transcription

1 HIGHLINE ELECTRIC ASSOCIATION REGULAR MEETING OF THE BOARD OF DIRECTORS September 21, 2017 A regular meeting of the Board of Directors of Highline Electric Association was held at the office of the Association in Holyoke, Colorado at 9:00 A.M. on September 21, ROLL CALL Vice President Jim Lueck presided at the meeting. present were: Mike Bennett Brad Stromberger Pam Stieb Leo Brekel David Kinnison Jim Lueck Steve Oestman Merlin Prior Directors Manager Farnsworth and Attorney Levi Williamson were also present. Attorney Williamson recorded the minutes of the meeting. Ted Carter, Merl Miller, and Aaron Sprague were absent. AGENDA APPROVED The Agenda was revised and approved as revised. MINUTES APPROVED The minutes of the August 17, 2017 meeting were approved as presented. MANAGER S REPORT Manager Farnsworth presented graphs of Cumulative kwh Purchased and kwh Sold through August Farnsworth presented and reviewed the Ormat summary for August. Highline recognized savings of $18, in August and $78, Y-T-D. Manager Farnsworth asked if the Board would like to donate to the CREA 527 account and NREA as they did last year. It was properly moved, seconded and carried to donate $2, each to the CREA 527 account and to NREA. The NREA Assistant Director of Government Relations will attend the October Highline Board meeting. Farnsworth presented the July CAMU rate survey. CoBank changed its capital credit policy, which will result in lower payments to Highline. OPERATIONS REPORT Rance Ferguson presented the September Operations Report. He reported on infrared testing of substations and construction crew projects. Ferguson presented the safety committee report. There were no accidents. Ferguson presented the outage report. ENGINEERING REPORT Manager Farnsworth presented the September Engineering Report as prepared by Trent Loutensock. The Sedgwick rebuild is complete.

2 Farnsworth reported on the status of the Crook rebuild, the Sedgwick transformer, the AMI project, and load control. MEMBER AND CORPORATE SERVICES REPORT Dennis Herman presented the September Member and Corporate Services Report. The Cushion of Credit balance was $2,107, as of August 31, HEA had $1, in fees on $110, worth of credit card payments in August. Herman reported on rebates and the RLF committee. Herman reported that the deadline for advancing funding on Highline s RUS note is November. He recommends advancing $10 million. Failure to advance the funds could cause Highline to lose future RUS funding. Advancing $10 million will bring Highline s equity close to the minimum set by Board policy. The Board discussed the advance and expressed no objection to the advance. Herman presented the Form 7, cash flow, and check register. RMI AND MICROGRID SOLAR PROJECT Kevin Brehm, Senior Associate with RMI, entered the meeting. It was properly moved, seconded and carried to go into executive session to receive confidential pricing information regarding the proposed solar project, with the following in attendance: Brehm, Attorney Williamson, all Directors present at the meeting, Ferguson, Herman, and Farnsworth. It was properly moved, seconded and carried to exit executive session. Jon Fitzpatrick and David Wiley of Microgrid entered the meeting. The Board discussed Microgrid s proposed solar project with Brehm, Fitzpatrick and Wiley. Brehm, Fitzpatrick and Wiley left the meeting. President Bennett recessed the meeting at 12:17 p.m. for lunch and reconvened the meeting at 1:00 p.m. The Board continued its discussion of the solar project. It was properly moved, seconded and carried to authorize Manager Farnsworth to sign a Letter of Intent with Microgrid to pursue the solar project, contingent on Attorney Williamson s approval of the LOI. Farnsworth reported that it does not look like a hydro project will work at the North Sterling Reservoir dam. Farnsworth reported that Highline received approval for $500, from RESP for financing member renewable distributed generation. The Board consensus was to move forward with the project. SAFETY COMMITTEE REPORT It was properly moved, seconded, and carried that the Safety Committee Report be approved as presented. APPROVE NEW MEMBERS It was properly moved, seconded, and carried that the list of new members listed below be accepted as members of Highline. Amen, Sara Blue, Neil Courtney, Jesse Alta Vista Cooley, Cheryl Davis, Harold E. Jr.

3 Dye, Linda Freeman Family Trust Gregg, Danette Derbs, Colton Mac Land Corp. McCord, Ty Ober, Jeremy Melvin Sage Point Water Sanitation Smith, Peggy L. Wall, Justin White, Nicole Franson, Ashley Gertner, Mark Johnson, Dawn Ann Knowlton, Ronda Marts, Reed Nuffer, Joanne Rodriguez, Juan Albert Sisseck, Brant T Bar W Cattle Co. LLC Welch, Donald Witzki, Kim & Merry SUBORDINATION AGREEMENTS CONTRACTS AND RELEASE OF LIENS It was properly moved, seconded, and carried that the following Subordination Agreements, Contracts, and Releases be approved: Contract & Lien Releases Jane & Michal C. Moreland-3 Josh Keating-4 Kingman Farms Southwest Border Farms, LLC Marc & Anne Newman Harvey L. Colgazier and Nancy J. Colglazier-2 ESTATE CAPITAL CREDIT REFUNDS It was properly moved, seconded, and carried that the following capital credit refunds be approved. Jacob Rhoades $ 2, Calvin Adams Konrad Amen Michael R. Burkholder George Jenik 7, William Keil Jean Krause 1, John McBride Norma C. Norman Thomas Noud Gary Waite Mildred L. Waite Jean Welch 1, Alan Wernsman 1, SUBSTATION ROCK Ferguson presented one bid for substation rock. It was properly moved, seconded and carried to accept the Diesel Brokers, LLC bid for $7, SPPD TERRITORY DISCUSSION Manager Farnsworth reported that SPPD plans to take back more than 35 meters that Highline has been serving in SPPD s territory pursuant to a territory invasion agreement. The agreement allows SPPD to take the meters back after paying the depreciated value of Highline s associated facilities. EXECUTIVE SESSION

4 It was properly moved, seconded and carried to go into executive session to discuss confidential employee benefit issues with the following in attendance: Attorney Williamson, and all staff and Directors present at the meeting. It was properly moved, seconded and carried to exit executive session. TRI-STATE Leo Brekel reported on his attendance at the regular meeting of the Tri-State Board of Directors. The Tri-State Board approved the 2018 budget with no rate increase. Tri-State will move forward with its plan to join the Southwest Power Pool. Tri- State is going out for $150 million in private financing. Brekel reviewed July financials. Brekel left the meeting at 2:00 p.m. ENVIRONMENTAL COMPLIANCE Farnsworth presented a resolution for approval of the Environmental Report for Highline s communications towers and monopoles. It was properly moved, seconded and carried to approve the resolution as presented. ON-LINE BANKING Farnsworth presented a resolution authorizing Highline to participate in on-line banking with Bank of Colorado. It was properly moved, seconded and carried to approve the resolution as presented. CREA Jim Lueck reported on his attendance at the regular meeting of the CREA Board of Directors. The CREA Board toured a methane recovery site, a Dairy, and the JM Schafer plant. CFC FINANCE WORKSHOP AND CREA DIRECTORS COURSE Directors Jim Lueck and Pam Stieb reported on their attendance at the CFC Finance Workshop. Stieb reported on her attendance at the CREA Director s course. NREA Merlin Prior reported that there was no meeting of the NREA Board of Directors. Prior reported on Nebraska election issues discussed at the legislative hearing. MEETING ATTENDANCE The directors discussed attendance at upcoming meetings. PUBLIC COMMENT

5 There was no Public Comment ADJOURNMENT There being no further business to come before the meeting, the meeting was adjourned at 2:40 p.m. SECRETARY PRESIDENT , v. 1