Barrow Utilities and Electric Cooperative, Inc. (BUECI) 1295 Agvik Street / PO Box 449 Barrow, Alaska 99723 (907) 852-6166 Bueci.org OFFICIAL NOTICE 2016 BUECI ANNUAL MEMBERSHIP MEETING Notice is hereby given pursuant to Article III, Sections 1 and 3 of the bylaws of BUECI that the Annual Membership Meeting will be held on Thursday, April 7, 2016 at 7:30 p.m. at the Barrow High School auditorium. The doors will open and registration will begin at 6:30 p.m. Registration will close and the business meeting will be called to order promptly at 7:45 p.m. The purpose of the meeting is to elect Directors, consider reports for the previous fiscal year, and transact such other business as may come before the meeting. No bylaw changes were submitted. The following are your present BUECI Board of Directors: Doreen M. Ahgeak Ellen J. Leavitt Herman L. Ahsoak Roy Nageak, Sr., Vice President Frederick Brower Don A. Nungasak, Secretary/Treasurer Lewis F. Brower Richard Ungarook, Sr. Price E. Brower, President The following three (3) Directors’ terms expire: Herman L. Ahsoak Ellen J. Leavitt Richard Ungarook, Sr. Nominations for Directors will be taken from the floor. Newly-elected Board Members will serve a three year term. There are a total of nine members who serve on the Board of Directors. There will be a drawing for valuable door prizes including a laptop and wolverine ruff. Gift bags will be given to the first 300 household members attending the meeting. Please join us Thursday, April 7, 2016, at 7:30 p.m. We urge all members to attend. We look forward to seeing you there! Sincerely, BUECI Board of Directors and Management b u e c i ANNUAL MEETING
Transcript
Barrow Utilities and Electric Cooperative, Inc. (BUECI)
1295 Agvik Street / PO Box 449 Barrow, Alaska 99723
(907) 852-6166
Bueci.org
OFFICIAL NOTICE 2016 BUECI ANNUAL MEMBERSHIP MEETING
Notice is hereby given pursuant to Article III, Sections 1 and 3 of the bylaws of BUECI that the Annual Membership Meeting will be held on Thursday, April 7, 2016 at 7:30 p.m. at the Barrow High School auditorium. The doors will open and registration will begin at 6:30 p.m. Registration will close and the business meeting will be called to order promptly at 7:45 p.m.
The purpose of the meeting is to elect Directors, consider reports for the previous fiscal year, and transact such other business as may come before the meeting. No bylaw changes were submitted.
The following are your present BUECI Board of Directors:Doreen M. Ahgeak Ellen J. Leavitt Herman L. Ahsoak Roy Nageak, Sr., Vice President Frederick Brower Don A. Nungasak, Secretary/Treasurer
Lewis F. Brower Richard Ungarook, Sr.Price E. Brower, President
The following three (3) Directors’ terms expire: Herman L. Ahsoak Ellen J. Leavitt Richard Ungarook, Sr.
Nominations for Directors will be taken from the floor. Newly-elected Board Members will serve a three year term. There are a total of nine members who serve on the Board of Directors.
There will be a drawing for valuable door prizes including a laptop and wolverine ruff. Gift bags will be given to the first 300 household members attending the meeting.
Please join us Thursday, April 7, 2016, at 7:30 p.m. We urge all members to attend. We look forward to seeing you there!
Sincerely,
BUECI Board of Directors and Management
b u e c i
ANNUAL MEETING
I. Determination of Quorum
II. Invocation
III. Appointment of a Parliamentarian
IV. Reading of Notice of Meeting and Proof of
Mailing
V. Approval of Agenda
VI. Approval of Minutes
VII. Presentation of Reports
1. President’s Report
2. General Manager’s Report
3. Secretary/Treasurer - Financial Report
VIII. Member Concerns
IX. Nomination of Directors
X. Election of Directors
XI. Drawings for Door Prizes
XII. Election Results
XIII. Unfinished Business
XIV. New Business
XV. Adjournment
Present Board of Directors Term Expires
Price E. Brower, President 2017
Roy Nageak, Sr., Vice President 2018
Don A. Nungasak, Secretary/Treasurer 2017
Doreen M. Ahgeak, Director 2018
Herman L. Ahsoak, Director 2016
Frederick Brower, Director 2017
Lewis F. Brower, Director 2018
Ellen Leavitt, Director 2016
Richard Ungarook, Sr., Director 2016
AGENDAANNUAL MEMBERSHIP MEETING
BARROW HIGH SCHOOL AUDITORIUMApril 7, 2016 at 7:30 p.m.
BARROW UTILITIES AND ELECTRICAL COOPERATIVE, INC.
Barrow Utilities and Electric Cooperative, Inc., belongs to the members it serves. As a member of BUECI, you have a say in how your Cooperative is run. Your BUECI Board of Directors is dedicated to providing reliable, affordable utility services and working for the benefit of the communities we serve. Putting you first and looking out for you is our directive around the board table.
The year 2015 was a strong and notable year for BUECI as we marked the 51st year of providing services to our members. The Cooperative completed the year financially strong and has experienced no surprises that could dramatically affect our rates. We are looking out for you, the BUECI members, by working hard to keep rates affordable.
As prices for material, equipment, labor, and everything else is on the increase, we look for ways to be more efficient and to reduce operating costs. At the same time, we seek to maintain the stability of services, and planning for future needs. Providing low-cost utilities to our members is something we are proud of and work very hard to protect.
BUECI worked hard in 2015 to achieve member satisfaction, reliable services, and safety for our employees. We have maintained and improved infrastructure to increase power reliability. Through it all, we’ve kept our focus on what is important and have maintained an impressive safety record. Safety is a top priority at your Cooperative.
We want you to know that Barrow Utilities and Electric Cooperative, Inc., its operators, staff, Management, and Board of Directors are looking out for you in all that we do. We are confident and positive about where we are and the future of your Cooperative. We thank you for your membership in BUECI and we look forward to another year of serving you.
Sincerely,
Price BrowerBoard President
2016 ANNUAL MEMBERSHIP MEETING, APRIL 7, 2016
BOARD OF DIRECTORSPresident’s Report 2015
Hello Members,
Once again it is that time of year to gather to meet and reflect on your Cooperative’s efforts in service to you, our owners. In the last year we have updated and upgraded our 600,000 gallon tank. It is in great shape for the next 20 to 25 years. In the next year we will be leveling our 1,000,000 gallon tank as it has a slight dip to the southeast, and providing additional reinforcement at the same time to our 600,000 gallon tank as well. We are also upgrading our NANO Membranes in the Water Plant. In the Power Plant we are pursuing upgrading our Control Cabinets and Distribution Feeders to prepare for future increased demand. This project will need to develop in phases over a period of two years. In our Natural Gas utility we are addressing requests for new services while providing maintenance and operations that sustain our Distribution Integrity Management Plan (DIMP) required under the Dept. of Transportation Pipeline Hazardous Material and Safety Administration (DOT PHMSA). In both our Electrical Distribution and Natural Gas Distribution we have been in discussion with the North Slope Borough (NSB) and Ukpeagvik Inupiat Corp. (UIC) for the transfer of UIC NARL Electrical and Natural Gas Distribution to BUECI. An Agreement may well be signed in the near future that will guide activity for eventual ‘closure’ representative of a completed transfer.
The management and balance of all these activities flows through our Central Office. I want thank all of our employees for their dedication and commitment that represents us as your Cooperative. I particularly thank our Central Office staff for stepping up during these challenging times. Without sustaining the management of our fiduciary responsibilities we could not achieve that which represents our Utility Cooperative.
In all that we need to accomplish, we strive to sustain our services to you while maintaining a conservative approach to maintaining our rates. This can be very challenging when circumstances require addressing multiple capital expenditures over a short number of years. We are working very closely with our community leaders, and organizations they guide, to best address opportunities we can find to work together to maximize efficient distribution of expenditures. Much like the effort put forth when growth challenged Barrow in the 1970s until today, our community has always strived to work together to maximize the benefits of our growth through cooperation. We look forward to continuing being a strong part of our community, working together for our future.
Sincerely,
Ben FrantzGeneral Manager
BARROW UTILITIES AND ELECTRICAL COOPERATIVE, INC.
OPERATIONSGeneral Manager’s Report 2015
Dear Members,
The Annual Financial Report for the year ending December 31, 2015 contains the audited 2015 Balance Sheet and Statement of Revenues and Changes in Patronage Capital. The Certified Public Accounting firm, BDO, LLP , has audited the 2015 and 2014 financial reports of the Cooperative.
The total operating revenues increased by $259,676 while total operating expenses increased by $1,642,595 for the year 2015 as compared to 2014. The net result was an increase in net operating margins of $365,333.
In 2015, the Cooperative closed $5.8 million dollars of capital projects aimed at extending services to members, improving service to existing members, and replacing equipment at end of life. The projects provided additional capacity to serve demand and to increase service reliability to members. The Cooperative’s long-term debt to the NRUCFC increased by $10,127,911.
New loans in 2015 included: Water Tank Rehab, 600K gal $4,900,000 Employee Benefit 4,331,911 Water Pumphouse Upgrade 568,000 PLC Scada Upgrade 153,000 Nonpotable Water Tank 108,000 Boiler Rebuild 67,000 Less: ($3,001,772) in principal payments were made in 2015.
The total long-term debt, including current maturities, owed at year-end 2015 is $20,894,624.
Because we are a Cooperative, we operate with “margins” which sustain our capital and cash flow needs. We equitably allocate those margins back to you, our members, over a 12 to 15 year rotation. Most of you know this by the term, Capital Credits. The Board of Directors approved a refund for Capital Credits to its members for distribution in March 2015. The amount refunded was $542,139. The total refund of prior year’s margins since 1986 is $20,079,319.
Respectfully,
Don A. NungasakSecretary/Treasurer
2016 ANNUAL MEMBERSHIP MEETING, APRIL 7, 2016
BOARD OF DIRECTORSSecretary/Treasurer’s Report 2015
BARROW UTILITIES AND ELECTRICAL COOPERATIVE, INC.
2015 FINANCIAL HIGHLIGHTSBALANCE SHEETS
December 31, 2015 and 2014
Assets
Utility plantElectric generation plantElectric utility plantNatural gas utility plantWater production plantConstruction work in progressTotal utility plant
General plantBuildings and improvementsVehicles and heavy equipmentOther general plantTotal general plant
Total fixed assetsLess accumulated depreciation
Fixed assets, net
Other assets and investments:Restricted fundsConsumer depositsCertificate of deposit/cash assignmentEmergency fund investmentsInvestments in associated organizationsTotal other assets and investments
Current AssetsCash - generalInvestmentsConsumer accounts receivable, netOther accounts receivable, netAccrued interest receivableMaterials, fuel and supplies inventoriesPrepaymentsTotal current assetsDeferred charges
Total Assets
2015 $ 13,781,555
5,398,566 2,836,106 9,143,751 5,929,244
37,089,222
5,818,999 2,305,221
791,587 8,915,807
46,005,029 (19,376,625)
26,628,404
148,850 25,000
487,000 2,206,318 2,867,168
1,806,915 50,712
1,718,911 707,451
- 1,285,084
27,873 5,596,946 5,117,187
$ 40,209,705
2014
$ 14,674,219 5,303,798 2,808,393 8,951,867
103,139 31,841,416
5,818,999 2,319,101
950,276 9,088,376
40,929,792 (18,398,003)
22,531,789
134,856 25,000
487,000 1,938,458 2,585,314
2,186,394 64,431
1,496,421 748,715
1,407 1,174,337
28,687 5,700,393
122,208
$ 30,939,703
Equities and Liabilities
Equities:MembershipsPatronage capitalCurrent marginsPrior years’ marginsOther equityTotal capital (equities)
Liabilities: Long-Term LiabilitiesLong-term debt, netPost-employment and post-retirement benefitsTotal long-term liabilities
Current LiabilitiesCurrent maturities of long-term debtTrade accounts payableNotes payableAccrued payroll and benefitsCustomer depositsAccrued taxesAccrued interestPatronage capital credits payableTotal current liabilities
Deferred credits (liabilities)Customer advancesPatronage capital allocation due to NSBTotal deferred credits (liabilities)
