~·~ EDERATION "\'f.§ OF ALBERTA GAS CO-OPS LTD.
Federation Status Report October 2019
GOVERNMENT & INDUSTRY RELATIONS
Fedc;":;.Uon Board and Adm!oii;trc;tion frequently meet governmf.':)t anrl indust1v tD di~'CLi55 fssut?s ~ r;fevo•)I to utJr;ti!~'~ o.~vJ ,chc
'WtUffJf ~Jfh inrtu~tr'/ GOVERNMENT RELATIONS Federation Board and Administration have frequent meetings with Government Members and officials. Primarily, these are with Alberta Agriculture, but may include other Ministries or meetings with MLAs for educational purposes. Updates • Met with Service Alberta Minister Nate Glubish on July 3 for a discussion on rural internet and how gas utilities could play a role for rural communities • Met with Transportation Minister Rick Mciver on July 17 to discuss issues with pipelines and rights of ways • Met with MLA Mike Ellis (Government Whip) on July 18 to discuss the Convention MLA Forum • Met with Agriculture and Forestry Minister Devin Dreeshen, Indigenous Relations Minister Rick Wilson, and Associate Minister of Natural Gas Dale Nally on July 30 to discuss a number of issues facing Member Utilities • Upcoming November meeting with Finance Minister Travis Toews to discuss Rural Gas Grant and Alberta Capital Finance Authority Act
INDUSTRY RELATIONS The Federation meets with other organizations to discuss areas of common interest. Organizations may include, but are not limited to: A TCO, AltaGas, Alberta Community and Co-operative Association, Alberta Common Ground Alliance, Alberta One-Call, Canadian Gas Association, Measurement Canada. Updates • Meetings ongoing with Rural Utilities, ATCO Gas, and AltaGas to revise the Technical Standards Manual • Working with AltaGas on developing PE Fusion training. • Bringing member utility concerns to Alberta One Call to develop solutions • Sponsored Alberta Common Ground Alliance for the current year • Sponsored CAPULC AGM and Locate Rodeo in April • Federation will present at CGA Operations, Engineering and Integrity Conference in Calgary in 2020. • AUC hearings • Met with Alberta Community and Co-operative Association on how to work better together
OPERATIONS D Federotfrm undt
O&M O&M Committee meets 10 times a year or more to review O&M Manual sections (all sections are reviewed at least once every three years). O&M Audits, along with follow ups, are scheduled to ensure utilities are meeting the O&M Guidelines. Updates • Emergency Response Planning review complete. Training course to be updated. • 2019 O&M audits completed • O&M inspection cycle will be moving to a three-year cycle beginning 2020. Schedules are being circulated. • O&M Committee providing comments to the Technical Standards Manual Review Committee.
ALBERTA ODORANT SERVICES The Federation along with Bow River Gas Co-op Ltd., East Smoky Gas Co-op Ltd., and Smoky Lake County administrate the subsidiary Alberta Odorant Services to provide mercaptan deliveries to Member Utilities and third parties. Updates • Odorant committee has provided feedback on changes to the Odorant Service contract to members and third-parties. Changes for consistency and administration are being reviewed. Changes would not impact odorant delivery. • A program to pick up unused odorant tanks is being scheduled for 2019. Odorant delivery co-ops will be inquiring with Members. • AOS is in the process of completing an assessment of odorant "pig tank "vessels at RMO stations. Purpose of the assessment is to confirm the vessels are rated for mercaptan service and have current certification dates.
GIS
2JPage The Federation works with the GIS Users Group and GIS Users Group Executive Committee to develop a central GIS accessible by Member Utilities. Updates • GIS program ready to launch but has been delayed by working with legal on an agreement with Silvacom. The proposed legal agreement was received in October and has been forwarded to the GIS Executive Committee for their review. • Under the proposed agreement, when launched the program will cost participating utilities $350 per month. • Federation is now the mapping repository for non-investor-owned rural gas distributors. The GIS will be used to keep the repository up to date. • Rural Utilities is no longer accepting in-fill files but will require a single overall plan of the utility showing only the low-pressure pipelines and customer symbols. The Federation plan is to deliver this to the Province as a single GIS submission. Each Utility would still need to list all prior year construction, including: o total number for each type of service installed (Rural, Urban, Non-grantable, Federal Lands, Re-routes, Re-installs, etc.) o a list of all upgrade projects constructed in the year o Summary of costs (only for distributors receiving grants) o List of all abandonments during the year o Total kilometres of pipe installed (low-pressure only).
Health & Safety The Federation Health and Safety Program is a suite of services allowing individual utilities the ability to maintain their health and safety programs, and to audit utilities on their individual programs. Updates • Dave Koopman has been hired as the Health and Safety Program Specialist • A Health and Safety Working Group is being formed from Member Utilities • The Health and Safety Program is being finalized in preparation for launch
ADMINISTRATION & CORPORATE SERVICES
U Admini~1.1ation ono' Frnonre manages 1nost of the day to drry operatirn?s of the Fl::d~'1 otion Tlfrs inciudes n>~po1t;.·/i)fl1fi, :..u-rh or;. Conv1:?ntion 01Hi Ttaimng arkninistrotion FINANCE The Finance section approves purchases, sends out invoices, maintains payroll and tax rolls, provides assistance to financial auditors, develops and monitors budgets. It also provides accounting for the Federation, grant program, measurement, Federation Insurance Reciprocal Exchange (FIRE}, RUBIS, Alberta Odorant Services, and Alberta Federation of Rural Water Co-operatives. Updates • 2019-2020 Federation budget completed and distributed for information at Fall Zone Meetings. • 2018-2019 financial audit completed and forwarded to Annual General Meeting • Zobia Pearl has been hired as the Finance Analyst • Discussions on investments have continued with Rural Utilities. It is their position that deposit reserves need to be protected under legislation, but operating reserves do not require supplemental bylaws to allow the utility to invest the funds in the manner so desired by the utility board/council.
ADMINISTRATION Administration is responsible for maintaining the Federation calendar and booking all meeting rooms or offsite meetings. It is also responsible for planning Federation meetings and events, filing, mail-outs, maintaining the Federation Centre and its tenants, maintaining information technology, maintaining Federation website and the Alberta Federation of Water Co-ops website, and is normally the first point of contact for enquiries or customer complaints. Updates
• The 13th Annual Federation Charity Golf Classic raised $26,000 for the MS Society • RUBIS marketing materials developed and distributed. It has gained three new customers • Working on a researching lands and buildings for a new Federation Centre to accommodate increased staffing, services, and a new training centre. It is not expected that any special levy will be required to complete a building project.
BENEFITS & PENSION The Federation works with Alberta Municipal Services Corporation (AMSC) to provide benefits and pension to employees and directors of Member Utilities. AMSC provides the actual administration of the benefits and pension program. The Federation negotiates rates and works with AMSC to ensure employees and directors are being treated as best as possible. The Federation sits on the AMSC Pension Advisory Group, and the AMSC Benefits Advisory Group. In addition, the Federation reviews Human Resources policies with legal and AMSC, and makes recommended changes to utilities as required. Updates • Eye examination benefit increased from $75 to $100. For over 18, this is every two years. For dependents under 18, it is every year. • Benefits renewal for 2020 being negotiated. All industries are experiencing high short-term and long-term disability usage, including utilities. High drug prices are affecting all plans. It is expected there will be an increase to benefits premiums. • Utilities will be able to participate in a new taxable spending account in 2020. This will allow employees to be able to use the account for items such as fitness programs or other wellness related items. This could take the place of a health spending account, and allow employees to decide how much they want in a health spending account and how much in a wellness spending account.
COMMUNICATIONS Communications is responsible for internal bulletins such as the Board to Board newsletter, Federation Status Report, Federation meeting presentations, and email bulletins. It is also responsible for external communications such as Federation briefing packages, brochures, trade fairs, advertising, social media, and provides assistance for government and industry relations. Updates
4 I Page • Federation is a Bronze Clover Sponsor of 4-H in 2019-2020. • Paid "Your Natural Gas Utilities" video advertisements are currently being run on YouTube and Facebook. It is also available to view at www.youtube.com/fedgasab • 34,000 Bill stutters were distributed in June • Radio ads have been reduced to allow for more on line advertising. Content of radio ads were updated over summer months. • 1,308 Radio ads booked for 2019-2020 season. Currently airing on: o 840 CFCW AM {Edmonton and Central Alberta) o River Country 94.1 FM {Peace River) o KIX 106.1 FM (Peace River) o YL Country 102.1 FM (High Level) o CHAT 94.5 FM (Medicine Hat) o Country 95.5 FM (Leth bridge) • The Federation has several social media accounts: o Facebook-www.facebook.com/fedgasab o Twitter - @fedgasab o YouTube - www.voutube.com/fedgasa b • Always looking for content for social media and newsletters, so any pictures, video, or events that you may want posted can be sent to kcru [email protected].
TRAINING Works with Training Committee, Trainers, and Third-Party Organizations to modify and develop training courses, and to put on training courses for Member Utilities - including setting facilities, working with hotels, ordering materials, and maintaining a database of course history. Updates • Federation prepared to host Gas Utility Operator in 2020. Denis Turgeon has been contracted to help with development of the course, as well as to instruct GUO Level 1 in 2020, and GUO Level 2 in 2021 with the intention of passing on knowledge of the course to new instructors. Intent is to have a lead instructor and one or two backup instructors. Course materials ready to go, on line portion ready to go. Most of the training will take place at the Federation Centre, but facilities have been rented at NAIT for one day, and Energy Safety Canada for four days. Online portion will launch February 24, class portion will be April 6-April 24. Cost will be reduced to $3,300 per student. In discussions with Province, Gas Utility Operator students will still be able to apply for the Canada-Alberta Job Grant. • Application for provincial accreditation to teach Gas Utility Operator to provincial certificate is going through the system. It has passed through the GUO Occupational Committee and is expected to go before the Apprenticeship and Industry Board by the end of November. • Federation working on bringing PE Fusion training in-house. Materials are starting to be worked on, and a plan in place to provide instructors. Looking at minor electrical work to the Federation Centre to allow the training to take place. • Alberta Agriculture and Forestry previously approved a $150,000 grant for purchase or development of training materials for Gas Utility Operator and PE Fusion. This was used to purchase learning materials for Gas Utility Operator. There is approximately $75,000 left for PE Fusion training materials. • Training Calendar and Registration moving to an online format through the Federation website.
5jP age CONVENTION Federation Convention and Trade Fair typically occurs over 5 days at the end of November. It incorporates a Trade Fair, training for Service and Office personnel, Managers Meeting, Chair's Meeting, general training, and an AGM. Over 600 people take part. Meetings are required with multiple hotels, speakers, and others to organize the event. Updates • Changes made to Convention structure. Members Meeting has been cancelled in favour of moving training sessions from Monday evening to Tuesday morning. This allows for more sessions to be held, and the opportunity for delegates to take in more than one session. • Rate structure has changed. There is a full convention rate, but delegates now have the ability to pay rates just for training sessions, Chair's Meeting, and the AGM if so desired. • Registration forms are now on line. • Electronic voting devices will be used again • The Convention app provider has changed to Guidebook. The Guidebook app needs to be downloaded, and then a passphrase entered to allow access to the Federation Convention app.
Federation Enhanced Rural Internet Committee • Previously named Fiber Optics Committee. Name change due to the fact that the solutions may not always include fiber optics. • Committee includes some Business Strategy Committee members, co-op managers, Alberta Federation of REAs, 0-Net, CCI Wireless, Alberta Urban Municipalities Association, Rural Municipalities of Alberta, and Service Alberta. • Pilot projects being planned. • Funding being sought for pilot projects, but most sources are looking for full projects.
PROGRAMS AND ENGINEERING SERVICES
0 Dr!parfment oversees the di5tribution of tf1e Rural Gas Grant and Ancillary Services, induding easf'tTh::nts., quality assuroPce and participation on tecfinicaf sajel:'y com1niitee:S. Federation a1111uof!y rer:efves $2 475 Miiiion from Afbr;:rta Govcrnm2qt tOr the Grur.t and LJ,ncf!iarv Services. Department oversees Engineenng serwces RURAL GAS GRANT Alberta Agriculture and Forestry has authorized the Federation to be the distributor for the Rural Gas Grant to the non-investor-owned utilities. Updates • Rural Gas Grant Funding for the 2017-2018 construction year has been received. Amount was $2.475 Million, same as the previous year. • Rural Gas Grant Agreement for 2018-2019 has been signed. Funding will remain the same as the previous year. The Federation has asked that the agreement be made into a multi-year agreement. • There were $18,993,503 in construction costs across 62 eligible distributors, for a grant demand of $2,950,869.64. This left a shortfall of $848,604. 71 of funds available. All distributors had eligibility reduced by 28.75%. A total $2,102,264.93 was disbursed to utilities with eligible services.
6 I Pa g c • Cost threshold and Unit Rates have been discussed with the Managers Advisory Committee. The Grant is routinely oversubscribed. Formulas are being reviewed to ensure the Grant remains fair. Decisions on changes need to be approved by the Federation Board and Alberta Agriculture.
EASEMENT SERVICES AND AUDITS Federation provides services to help utilities gain rights-of-ways or determine what easements/parcels are already on a land area. This service is provided to Member Utilities, Non-Member Gas Utilities, REAs, and Water Co-ops on a fee basis. Construction audits for the Rural Gas Grant. Cadastrals are provided to Member Utilities. Updates • 2018 construction audits are complete.
QUALITY ASSURANCE & TECHNICAL SAFETY Federation oversees program to ensure pipe has proper quality, and takes part in numerous Technical Safety Committees such as CSA Z662, CSA 8137, CSA 8137.4, Alberta Common Ground Alliance, and others. Updates • UV stability for outdoor storage has been increased to 3 yrs. Working on capturing if any of our piping if affected by this due to the downturn in the economy. • Asking AER for exemption for Composites and thermoplastic pipes suitable for HP. • Technical Standards Manual Review Committee has been meeting regularly.
ENGINEERING SERVICES Federation is developing its Engineering service capabilities Updates • Asset Valuation for a member coop has been undertaken. Continuing to work on a Life Cycle replacement model for the membership. • Attended CSA meetings, including Z662 Technical Committee. • FedGas Engineering Services include: o Pipeline Design - sizing and specification (all pressure ranges) o Directional Drill Design o Hydraulic Modelling - Gas and Water o Station Design - natural gas pressure regulating o Mapping-As-builting, design of pipeline installations o Civil design of land for stations and pipelines o Review and updating of standards o Water crossings • For Engineering Services, call or email Henry Tetteh-Wayoe at 780-416-6543 or [email protected]
FEDERATION INSURANCE RECIPROCAL & EXCHANGE (FIRE)
0 Recipracof ho.5 beeo set up to nianage insurof'>te needs of Membc1 Utilities .. the Federation, O!}d Gas Aiberta FIRE
71Pagc Aon Reed Stenhouse manages the reciprocal on behalf of the Federation. Federation Board acts as the Board of Directors for FIRE. The Co-operators is the insurance holder for the Reciprocal. Updates • Renewals have gone out for 2019-2020. • FIRE helping to fund development of Health and Safety Program.
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