Special City Commission Meeting - 01 May 2013

Tentative Settlement Agreement Reached with Southern Montana G&T

PRESS RELEASE
FOR IMMEDIATE RELEASE
DATE:  April 26, 2013
CONTACT: Jennifer Reichelt, Deputy City Manager – 455-8417

TENTATIVE SETTLEMENT AGREEMENT REACHED WITH SOUTHERN MONTANA G&T

Great Falls, Montana – The City of Great Falls, Electric City Power and Southern Montana G&T, through their attorneys, have reached a tentative Settlement Agreement and Release, which will totally, completely and permanently sever the City’s relationship with Southern Montana G&T.
The proposed settlement agreement includes an owed water credit in the amount of $1,186,061.83 plus a mediated settlement amount of $2,063,938.17 totaling $3.25 million. The settlement is due only after it is approved by the Federal Bankruptcy Court. The settlement will be paid in two payments; one due three business days after the bankruptcy court accepts the settlement and the other on or before December 31, 2013. If the Settlement Agreement and Release is approved by the Commission, the source of the payments and funds will be approved through budget adjustments at a future City Commission meeting and discussed through the 2013/2014 budget process.

On Wednesday, May 1, two special meetings will be held in the Commission Chambers of the Civic Center (2 Park Drive S) to consider the Settlement Agreement and Release.  The Board of Directors of Electric City Power (ECP) will meet at 5:30 p.m. and there will be a Special City Commission Meeting at 7 p.m. Both Meetings will air on City 7 and be streamed live online. The Settlement Agreement and Release are available online at www.greatfallsmt.net.

Media inquiries regarding the Settlement Agreement and Release should be directed to Doug James, with Moulton Bellingham, at 406-238-1565 or Doug.James@MoultonBellingham.com. Written Public Comments regarding the Settlement Agreement and Release should be sent to Lisa Kunz, City Clerk at lkunz@greatfallsmt.net, hand delivered to the Civic Center-Office 204 or mailed to:

Civic Center
Attn: City Clerk’s Office
PO Box 5021
Great Falls, MT 59403

ECP Board Meeting, April 2012

When: Monday, April 2 at 5:30 p.m.

Where: Civic Center, Commission Chambers

Agenda:
A. FINANCIAL REPORTS

B. NEW BUSINESS

Accept Board Meeting Minutes from March 5, 2012

C. OLD BUSINESS

Trustee Update by ECP Board Director/Chairman Jones (and
Southern Trustee)

Renewable Energy Credit Update

D. BOARD MEMBER REPORTS

Southern Montana Bankruptcy Update

E. GENERAL AND PUBLIC COMMUNICATIONS

Public Comment

ECP Board Meeting, February 2012

When: February 6 at 5:30 p.m.

Where: Commission Chambers, Civic Center

Agenda:

A. FINANCIAL REPORTS

B. NEW BUSINESS

1. Accept Board Meeting Minutes from January 9, 2012

C. BOARD MEMBER REPORTS

1. Southern Montana Bankruptcy Update

D. GENERAL AND PUBLIC COMMUNICATIONS

1. Public Comment

E. ECP BOARD MEETING DATES FOR CONSIDERATION

1. March 5, 2012

F. ADJOURN

ECP Board Meeting, January 2012

When: Monday, Jan. 9 at 5:30 p.m.

Where: City Commission Chambers, Civic Center

Agenda:
A. FINANCIAL REPORTS

B. NEW BUSINESS

1. Appointment of Chair and Vice Chair

2. Accept Board Meeting Minutes from December 5, 2011

C. BOARD MEMBER REPORTS

1. Southern Montana Bankruptcy Update

D. GENERAL AND PUBLIC COMMUNICATIONS

1. Public Comment

E. ECP BOARD MEETING DATES FOR CONSIDERATION

1. February 6, 2012

F. ADJOURN

Gregori Retires From SME

On Tuesday, nearly one week before the Nov. 17 creditor's meeting, Tim Gregori retired as general manager. Not surprisingly, there was no emergency meeting called, or any notice given to the trustees. Alan See, the general manager of the Tongue River Electric Co-op, is the interim manager. No vote taken for this decision either.

More details here.

SME Files Bankruptcy

For most folks, this is already old news. There remains though a serious concern that this is a valid filing, considering that a quorum of the SME board was not available to vote on the decision. To top it off, SME refused to seat new Beartooth Co-op board member, Arlene Boyd. After filing for bankruptcy, the board also voted to increase wholesale power rates by 20%. Beartooth is going to fight. Good for them.

Electric City Power Board meeting, Jan. 2011

When: Monday, Jan. 3 at 5:30pm

Where: Gibson Room, Civic Center

Agenda packet

Agenda:

A. FINANCIAL/MANAGER REPORTS

B. NEW BUSINESS
1. Accept Board Meeting Minutes from December 6, 2010
2. Appointment of Chair and Vice Chair

C. OLD BUSINESS

D. BOARD MEMBER REPORTS

E. GENERAL AND PUBLIC COMMUNICATIONS
1. Letter dated December 13, 2010 declining voluntary increase from Pilot Program Customers
2. Letter from Manager Doyon dated December 14, 2010 regarding attendance at Southern Board Meetings
3. Letter from SME dated December 27, 2010 regarding January 3, 2011 meeting to discuss alternatives for continuing supply of electricity through ECP.
4. Response from Manager Doyon dated December 29, 2010 to SME regarding meeting.
5. Public Comment

F. ECP BOARD MEETING DATES FOR CONSIDERATION

G. ADJOURN

ECP Meeting, December 6, 2010

When: Monday, Dec. 6 at 5:30pm
Where: Civic Center, Gibson Room

Agenda packet

Agenda:
FINANCIAL/MANAGER REPORTS
1.City Manager/Southern Trustee Attendance at Southern Board Meetings
2.Financial Reporting Format

NEW BUSINESS
1.Accept Board Meeting Minutes from November 8, 2010
2.Bylaw Review and upcoming Appointments of Chair and Vice Chair

OLD BUSINESS
1.ECP customer communication updates
2.Pilot Program Rate Change Discussion

BOARD MEMBER REPORTS

GENERAL AND PUBLIC COMMUNICATIONS

1.NWE Monthly Electric Supply Tracker Rate Change Detail – December, 2010
2.Orders dated November 3, 2010 regarding YVEC vs. SME etal
3.Email from Coleen Balzarini dated November 18, 2010 regarding ECP Board Meeting questions from Commissioner Jolley
4.Handouts from November 8, 2010 meeting
5.Public Comment

ECP BOARD MEETING DATES FOR CONSIDERATION

About Time

Finally. The Great Falls Tribune is finally reporting on the problems plaguing ECP.

Why did it have to take five years and 5 million dollars (including water credits) later to finally report the reality of this gross misuse of taxpayer's money?

See here for an abbreviated version of Sunday's (Nov. 14) article.

ECP Meeting, November 8, 2010

When: Monday, November 8 at 4:00pm
Where: Gibson Room, Civic Center

Agenda packet

Agenda:

A. FINANCIAL/MANAGER REPORTS
1.Letter to NorthWestern Energy regarding ECP’s Customer Portfolio and NorthWestern Energy Response

B. NEW BUSINESS
1. Accept Board Meeting Minutes from October 4, 2010

C. OLD BUSINESS
1. ECP customer communication updates

2. Pilot Program Rate Change Discussion
a.Copy of letter sent to ECP Pilot Program Customers
b.Memo regarding Pilot Program voluntary increases
c.Letter from Mr Gregori regarding the future on ECP Pilot Program

3. Update on Montana Supreme Court Case (Benefis/City v. PSC/NWE) Update on YVEC vs. Southern Montana Electric Generation and Transmission Cooperative, Inc., etal.

D. BOARD MEMBER REPORTS

E. GENERAL AND PUBLIC COMMUNICATIONS
1. NWE Monthly Electric Supply Tracker Rate Change Detail – November, 2010
2. Draft letter to remaining customers
3. Email to ECP Customers regarding RSS links to ECP documents
4. Article from Great Falls Tribune dated October 13, 2010 and projected estimated rates
5. Order from Public Service Commission as related to Renewable Portfolio Standard Compliance Filings for 2009 for ConocoPhillips Company
6. Public Comment

F. ECP BOARD MEETING DATES FOR CONSIDERATION

G. ADJOURN

Citizens Barred Once Again

Citizens were once again barred from the SME board meeting this past Friday, June 18.

Commissioner Jolley was allowed into the meeting even though she is not the city's representative.

SME Board Minutes

Here are the SME board minutes from April 2008 through April 2010.

Balzarini Resigns

UPDATE: Here is Coleen's resignation letter.

I did not attend the ECP power board meeting last night, but according to this article, she resigned her position as executive director.

It's about time.

The ECP board, which is the City Commission, will appoint her replacement.

I certainly do not favor appointing someone within the Fiscal Service Department or any member of the City Commission. It's more than time to get an unbiased third party involved, whose main concern will be the interests of the City of Great Falls and its residents, not those of SME.

ECP Bailout

Last week, Larry Rezentes, a CPA and watchdog for the ECP boondoggle, wrote the mayor and city commissioners in anticipation of the May 3 ECP board meeting. Below is his analysis of the resolution reached at that meeting to potentially exit the power business. Included is a link to his documentation:

At Monday night’s meeting, the Electric City Power Board approved resolutions to have city staff develop a city strategy to potentially exit from the electric power business, and for the ECP executive director to approach customers about their willingness to move pricing of their contracts with ECP to cost plus. A major element of the city staff work will be done by our new city attorney in assessing individual contracts and exposures to litigation against the city from ECP customers and from SME. I cover what I believe are premises that should exist to actions by the city, the suggested action course to shut down ECP, and the correction of misconceptions as to the risks presented by the potential for customer and SME litigation, in the attached material, and so I won’t belabor them now.

Suffice it to say, however, that the current parallel track action course to “explore” shutdown and increased pricing is both a trap and an implicit acceptance of the assumption that the city has the authority to continue in its misguided and illegal operation of ECP. This, while ECP loses additional taxpayer money ($234,674 in the first three months of this calendar year) in violation of ECP’s founding ordinance in the meantime, and with the same individuals in charge who were and are in charge while these losses occurred and continue to occur. A trap, because it continues the never ending saga with no decision ever being made to terminate ECP, while giving cover to the city while the losses continue. A mistake, in its implicit premise that to make a decision to shut down ECP there must be assurance of zero risk of litigation in doing so. It is interesting though that suddenly, at this late hour, ECP is going to approach customers to obtain price increases to stanch the losses. A part of the suggested solution of cost plus, incidentally, would come by increasing pricing of power that the city itself purchases from ECP, resulting in the passing on of the burden of ECP losses even more directly to the taxpayers.

I addressed his honor, the mayor, as ECP Board Chair, and suggested others (by inference, the city attorney) could elect to respond on the issue as well, of the basis under which the city continues operating ECP in violation of the law while losses continue to mount. The mayor simply would not answer the question, other than to say that it would take time to exit the business. However, as City Attorney Santoro correctly was quoted in the Great Falls Tribune as stating, the resolutions passed do not even place us in the position of having made a decision to do so.

So, another jovial meeting of city government and staff, while the taxpayers continue to lose money in the interest of the few businesses that have benefited from subsidized pricing that in large measure resulted in the losses ECP has sustained.

Larry
Rezentes

Electric City Power Board, Meeting Tonight

When: Monday, May 3 at 5:30pm

Where: Gibson Room, Civic Center

Agenda:
A.SELECTION OF MEMBER TO ACT AS TEMPORARY CHAIR

B.OLD BUSINESS
1.Bylaw Amendment

C.ELECTION OF OFFICERS

D.EXECUTIVE DIRECTOR REPORT
1.Financial Reports
2.YVEC vs. Southern Montana Electric Generation and Transmission Cooperative Inc ETAL
a.Plaintiff YVEC’s Motion for Scheduling Conference
b.Order Setting Trial and Case Management

E.CITY MANAGER REPORT
1.Discussion and Direction regarding City’s representation on Southern Board
a.Memorandum From James W Santoro regarding Public’s Right to Know/ Participate in Southern/ SME Board Documents and Meetings
b.Responses from Southern
2.Miscellaneous topics
a.Discussion of future agenda topics as proposed by Commissioners/ ECP Board Members

F.NEW BUSINESS
1.Accept Board Meeting Minutes from April 5, 2010
2.Enter Board Meeting Minutes from March 1, 2010 into record as reviewed and revised by prior Board Members
3.Rate restructuring. Discussion, consideration, direction

G.BOARD MEMBER REPORTS

H.GENERAL AND PUBLIC COMMUNICATIONS
1.NWE Natural Gas Utility Unit Rate Adjustments/Proposed Rates & NWE Monthly Electric Supply Tracker Rate Change Detail – May
2.NWE Natural gas USBC Rate Adjustment letter
3.Handouts from April 5, 2010, meeting
4.Public Comment

I.ECP BOARD MEETING DATES FOR CONSIDERATION
◦June 14
◦July 19
◦August 2

J.ADJOURN

Electric City Power Board No More

The current Electric City Power Board was disbanded tonight by a 4-1 vote by the City Commission. Bronson dissented.

Only Lee Ebeling and Ole Stimac from the board attended.

Money IS Important

I attended the Electric City Power board meeting last night and was as usual, unimpressed.

Board members continue to blame everybody and everything else for their lack of leadership. A new twist came when more than one of them bemoaned the fact that they are volunteers; serving on this board without compensation. (Yes, they reminded us, more than once, they are not getting paid).

Does this mean that had the taxpayers paid them, they would have actually stepped up and done their job and represented the interests of the city and its citizens?

We can only hope the City Commission votes this evening to remove them.

Current ECP Board To Be No More?

According to this report from KRTV, Mayor Winters has asked that a decision be made at next week's City Commission meeting to disban the current ECP board and allow the City Commission to take on its duties.

It's about time.

Burns and McDonnell Meeting

I was unable to attend last night's meeting with the folks from Burns and McDonnell.

Gregg has his comments here and the Tribune's article is here.

If you attended, please share your thoughts.

Burns and McDonnell Meeting Tonight

What: City Commission meeting with Burns and McDonnell to answer questions with regard to their report on their organizational and financial review of ECP.

When: Tonight, Feb. 18 at 5:30pm in the Gibson Room.