Suggest tabling item D2. Combined Cycle Interest Group

No report.

• March 2016 Treasurer's report

Motion Passed:  accept financial report. passed with a motion by Mike Withrow and a second by Chris Melton.

Terry Naulty provided the report.

At the January Meeting, the Board asked the Advisory Team to develop a resolution that would call for KyMEA to, during FY 2016/17, to consider certain renewable options with the aim of identifying initial options that could be implemented by May 1, 2019.  One option to be considered would be community solar projects in those Members’ communities that have an interest.

• KY Muni Mtg 2015_03_24_Consideration of Renewables A
• Resolution Authorizing Consideration of Renewable Resources

Motion Passed:  Approve resolution that KyMEA determine during FY 2016/17 how to initially incorporate renewable energy projects into the All Requirements portfolio beginning as early as May 2019 passed with a motion by Terrance Naulty and a second by Josh Callihan.

John Painter gave a presentation and lead discussion. It was made clear that this resolution is only to budget the money for the project but does not authorize the study at this time. Terry Naulty suggested that a scope of work be provided at the April meeting before any approval be given to authorize the actual study.

A proposal has been received for KyMEA to purchase power from a natural gas-fueled combined cycle generation plant to be constructed by the early 2020s. 

The proposed Interest Group Agreement would provide for KyMEA to share in the process and costs of developing a power purchase agreement relative to combined cycle plant.  The agreement would not commit KyMEA to purchase any amount of power from the plant.

Item was tabled.

KYMEA initiated a competitive bid process commencing on February 1, 2016, with formal bids ultimately received on March 1, 2016. Assigned markets and bid specifications were sent to 6 potential bidders after a Letter of Interest was issued to the 7 broker/agent participants and/or direct insurance writers that had expressed interest in proposing coverage for POL/EPL under OMU's comprehensive P&C Insurance bid already underway. This resulted in the same 15 unique insurance markets requested for this line. Subsequently, 4 sealed bids were received for the opening.

Evaluation of proposals revealed the most competitive (and comprehensive) bid from Roeding Group Companies, as agent for Kentucky League of Cities Insurance Services (KLCIS). Not only did they propose POL coverage with EPL, they did so in conjunction with General Liability (GL) coverage, and at the lowest cost for requested limits. In addition, they offered the most optionality for limits/deductibles, and additional coverages as stated, but also $1M Data Breach and Privacy Liability (Cyber) coverage for no additional premium, $1M Non-owned/Hired Business Auto Liability coverage for $155.00 additional premium, and $25k/$50k Crime/Employee Dishonesty for $627.15.

Therefore, pursuant to KRS 45A.365(2), it is recommended to award the POL Insurance at the limits/deductibles listed below, including proposed coverages, for a total premium of $7,922.15 (plus any applicable taxes/surcharges), to Roeding/KLCIS, who is evaluated to most adequately meet the needs of KyMEA, now and into the future:

• POL/EPUGL($7,140.00): $10M Limit; $10k Ded. POL/EPL; $0k Ded. GL
• Cyber & Auto Liab. ($155.00): $1M Limit Each; $5k Ded. Cyber; $0k Ded. Auto Liability
• Crime Coverage ($627.15): $50k Limit Employee Dishonesty; $25k Limit Crime; $100-$250 Ded.

• 160318_Officer and Director Insurance recommendation
• Articles of Association and Bylaws
• Instructions
• Interlocal Coop Agreement
• Resolution
• Trust Participation Agreement

Motion Passed:  Approval of Recommendation of Award for Public Officials Liability insurance to Roeding Group Companies for a total premium of $7,922.15 (plus any applicable taxes/surcharges) and authorizing the Chairman to execute the Resolution approving the execution of the Inter-local Cooperation Agreement to establish the Kentucky League of Cities Insurance Services, the Inter-local Cooperation Agreement and the Trust Participation Agreement. passed with a motion by Mike Withrow and a second by Chris Melton.

Terry Naulty led a discussion of item.

Agreements that need to be put in place are as follows:

1. KyMEA and All Requirements Members for:

• All Requirements Service (including power supply and other admin services)

• Purchase of capacity and energy from Member resources (Paris diesels, SEPA, other)

1. KyMEA and OMU

   • Sale of Capacity to OMU

   • Power supply and other admin services

   • Energy pooling arrangement

Tom Trauger and John Painter led significant discussions on the topic.

Paducah and Princeton have expressed an interest in considering membership in KyMEA.

At the December meeting, the Board decided to have Terry and Chris have discussions with Paducah and Princeton concerning membership.

The Board will receive a status report regarding any further discussions that have occurred.

Will be meeting on 1st of April.

Late last year, a schedule was presented on ongoing activities.  That schedule has been updated and needs to be reviewed with the Board.

The Board will be asked to provide input and direction, but no formal action is needed.

• KY Muni Mtg 2015_03_24_Project_Schedule_Update

John Painter led the discussion.

• MeetingMinutes02252016

Motion Passed:   passed with a motion by Terrance Naulty and a second by Josh Callihan.

The KyMEA Board of Directors shall hold its regular meetings on the fourth Thursday of each month, except for the months of November and December when the regular meeting shall be held on the third Thursday. 

The regular meetings shall convene and commence at 10:00 AM Central time on said dates.

The regular meetings shall held at the Bowling Green Municipal Utility located at 801 Center St, Bowling Green, KY 42101 in Bowling Green, Kentucky or at such location to be designated by the Board.

April 28, 2016 at 10:00AM Eastern in Lexington, KY Special Meeting

May 26, 2016 at 10:00AM

June 23, 2016 at 10:00AM

July 28, 2016 at 10:00AM

August 25, 2016 at 10:00AM

September 22, 2016 at 10:00AM

October 27, 2016 at 10:00AM

The KMUA Spring Meeting is scheduled for April 28 and 29 in Lexington at the Double Tree hotel with activities at Keeneland on Thursday the 28^th, the normal date of the KyMEA Board meeting.

The Board needs to establish a schedule and place for the April Board meeting.

Plans will be investigated to move the April meeting to Lexington to facilitate directors who are also involved with the Spring KMUA meeting also in Lexington on the same date. Suggestion is that the meeting be at 8:00AM. This would be a special meeting.

Discussion of proposals to provide Power Supply Resources to KyMEA submitted in response to KyMEA’s RFP and related options for submitting applications for transmission service. 

The RFP included a commitment to not disclose proposal terms and provisions to competitors. 

KRS 61.810(1)(k) and 61.878(1)(c) allow for closed session where discussions regarding records or information disclosed to the agency or required to be disclosed to the agency as confidential or proprietary would if disclosed by the agency would provide an unfair advantage to competitors of the entity disclosing such information.

Motion Passed:  Approval to enter into Closed Session pursuant to KRS 61.810 (1)(k) and 61.878 (1)(c) for the purpose of discussion of proposals to provide Power Supply Resources to KyMEA submitted in response to KyMEA’s RFP and related options for submitting applications for transmission service. The RFP included a commitment to not disclose proposal terms and provisions to competitors. KRS 61.810(1)(k) and 61.878(1)(c) allow for closed session where discussions regarding records or information disclosed to the agency or required to be disclosed to the agency as confidential or proprietary would if disclosed by the agency would provide an unfair advantage to competitors of the entity disclosing such information passed with a motion by Terrance Naulty and a second by Mike Withrow.

Motion Passed:  Approval to return to Open Session passed with a motion by Vent Foster and a second by Chris Melton.

None.

Motion Passed:   passed with a motion by Vent Foster and a second by Josh Callihan.