Lane Electric - A Touchstone Energy Cooperative

11-23-15

Minutes of the Board of Directors’ Regular Meeting November 23, 2015

The Lane Electric Cooperative, Inc. (LEC) Board of Directors convened its regular board meeting on November 23, 2015 at the LEC corporate office at 787 Bailey Hill Road in Eugene, Oregon.

Call to Order
President Christopher B. Seubert called to order the LEC Board regular monthly meeting around 9:00 am with a quorum present. Directors present were: Vice-President J. Ingrid Kessler, Treasurer Jack Billings, Secretary Hugh Buermann, and directors Susan Knudsen Obermeyer, Kathy Keable, and Jerry Shorey.

Also present at different times in the meeting were: Charles N. Fadeley, LEC attorney (arrived at 9:00 am); Matt Michel, General Manager; Dave D’Avanzo, Manager of Member & Regional Affairs; Debi Wilson, Manager of Office & Staff Services; Tony Toncray, Manager of Engineering & Operations, Cynthia Scoble, Controller; Denisa Bradley & Bud Dyer for the Employee/Staff Insurance Committee; Kenneth Kuhns from Kenneth Kuhns & Co.; and Bo Downen from Public Power Council.
Executive Secretary Brenda Everts acted as recording secretary. Member Input
None

Approval of Agenda
President Seubert asked if there were additions or amendments to the agenda. President Seubert declared the agenda approved as presented.

Approval of Minutes
President Seubert asked if there were additions or corrections to the October 26, 2015 board meeting minutes. President Seubert declared the October 26, 2015 minutes approved as presented.

Safety Program Report
Engineering & Operations Manager Tony Toncray reported on the October inside Office and outside Construction and Maintenance safety meetings, and the Employee Safety Performance graphs through October. He answered questions about the DART rate and RESAP metrics. Director Buermann reported on the inside safety meeting he attended.

Financial Report
Controller Cynthia Scoble reported on LEC’s financial condition for the period ending October 2015.

Consider Health and Dental Insurance Renewal
Debi Wilson along with Employee/Staff Insurance Committee members Bud Dyer and Denisa Bradley explained the medical and dental options available to Lane Electric’s employees this year. Upon motion made and seconded, the Board authorized the renewal of both medical insurance coverage with Providence Health Plan and dental insurance coverage with NRECA for the Cooperative employees for budget year 2016.

Consider Adoption of 2016 Budgets
Debi Wilson along with Cynthia Scoble presented the 2016 operating and capital budgets. Discussion occurred. Upon motion made and seconded, the Board adopted the operating and capital budgets as presented and identified as Version 3 in the board packet for fiscal year 2016.

Consider Adoption of 2016 Rate Schedules
Debi Wilson presented the revised 2016 rate schedules. Discussion occurred. Upon motion made and seconded the Board authorized revisions in the Cooperative’s retail rate schedules as presented in the board packet to effect a 5.7% rate revenue increase by both raising the monthly Basic Charge by
$6.50 and raising the kilowatt-hour Energy Charge by 1.5% for all classes, including a $6.50 per kilowatt (over 50 kilowatts) or horsepower Demand Charge for applicable rate cases, and effective to all billings rendered on or after January 1, 2016.

Consider 2015Audit Engagement Agreement
The Lane Electric Board of Directors, acting as the Audit Committee, met with Kenneth Kuhns of Kenneth Kuhns & Company for the 2015 Pre-Audit Conference on November 23, 2015.
Mr. Kuhns introduced himself and his firm to the Board.
Mr. Kuhns went over the general approach to the audit and schedule of work. The Committee asked staff if they had any input.
The Audit Committee went into executive session with the auditor and system attorney. Staff was excused.
The Audit Committee returned to regular session and upon motion made and properly seconded, it was unanimously moved to engage Kenneth Kuhns & Co. to provide audit services to Lane Electric Cooperative for the year ended December 31, 2015 in accordance with the engagement letter submitted.

Policy Review
General Manager Michel presented Policy 108 (Directors Fees & Expenses) and explained the reason for its review this month. Mr. Kuhns was asked to explain how the IRS defines Per-Diem and reimbursement for travel days. Discussion occurred. President Seubert suggested there be no changes to this policy at this time and to look at the policy at the regular rotation.

General Manager Michel presented Policy 209 (Purchases – Employees & Directors) for review. Discussion occurred. Upon motion made and seconded, the Board adopted Policy 209 (Purchases – Employees & Directors) as presented in the meeting packet.

Community Solar Garden Report
Member & Regional Affairs Manager Dave D’Avanzo updated the Board on our marketing campaign and panel output subscriptions.

Reports
Annual Meeting Committee –
Annual Meeting Chair Kessler along with Dave D’Avanzo presented the suggested dates for the 2016 district meetings: Central area meeting on April 28, McKenzie area meeting on May 10, Dorena area meeting on May 12, and the Oakridge are meeting on May 21. Upon motion made and seconded the Board approved the 2016 District Meeting dates as presented.

Director Reports: Director Buermann reported that his tour of some of Lane Electric’s service area with Manager Toncray and General Manager Michel was very informational and informative.

ORECA: President Seubert reported on the upcoming ORECA meeting and class in Salem.

Government Affairs: General Manager Michel reported on a renewable portfolio standard ballot initiative, a proposed community solar program legislation, and ORECA legislative issues.

General Manager: General Manager Michel shared thank-you notes received and reported on: PNGC rates and updates, LEC load forecasts, annual meetings, Policy 401 expenditures, pre-pay, MAP plus rounding up program, BPA’s Focus 2028, Blue River hydro permit, recruitment update, and staff certification.

NW Power & Conservation Council’s Draft 7th Plan
Bo Downen, PPC Senior Policy Analyst gave a presentation on NW Public Power Council’s Draft 7th Plan. Discussion occurred.

Consider Adoption of 2016 Board Regular Meeting Calendar
President Seubert referred to the 2016 DRAFT Board meeting Calendar that was included in the packet and suggested moving the December Board Meeting from December 27th to December 19th. Upon motion made and seconded the Board approved the 2016 board meeting dates with the one suggested change of moving the December meeting date from December 27th to December 19th.

Donation Requests
President Seubert presented the following Donations for consideration:
Spencer Creek Grange, Fern Ridge Library Foundation, Row River Valley Community Sunshine Club, LEC Employee March of Dimes Campaign. Discussion occurred.

The Board approved a donation in the amount of $500 to the Spencer Creek Grange.
The Board approved a donation in the amount of $400 to the Fern Ridge Library Foundation. The Board approved a donation in the amount of $200 to the Row River Valley Community Sunshine Club.
The Board approved a donation in the amount of $630 to the LEC Employee March of Dimes Campaign.

Agenda Items for December 21
President Seubert reviewed next month’s agenda items. Review of the general manager’s 2016 goals and director conference/training coordination were added for December. Discussion occurred regarding the remaining funding in the donation account. Upon motion made and seconded, the board approved General Manager Michel to accept any valid donation received from today until the next board meeting date of December 21st and then to put the remaining funding in the Director Donation fund into Lane Electric’s Member Assistance Program (MAP).

Action Review:
Approval of the agenda, approval of the minutes, approved health and dental insurance coverage, approved 2016 operating and capital budgets, approved 2016 rate schedules, agreed to retain auditor for 2015 fiscal year, affirmed Policy 209, approved four 2016 district meeting dates, adopted the 2016 regular board meeting schedule, and the following donations: $500 – Spencer Creek Grange, $400 – Fern Ridge Library Foundation, $200 – Row River Valley Community Sunshine Club, $630 – LEC Employee March of Dimes Campaign.
Executive Session
The directors along with General Manager Michel and Attorney Fadeley entered into executive session.

Adjournment
Being no further business to come before the Board, President Seubert adjourned the meeting at approximately 3:15p.m.