Lane Electric - A Touchstone Energy Cooperative

2013 August

 

Minutes of the Board of Directors’ Meeting

Lane Electric Cooperative, Inc.

August 26, 2013

 

 

            The regular monthly meeting of the Board of Directors of Lane Electric Cooperative Inc. was called to order by President Jeri Nelson at 11:00 AM on Monday, August 26, 2013, at the Cooperative’s office at 787 Bailey Hill Rd, Eugene, Oregon.   Directors present were Christopher B. Seubert, Vice-President; Patricia C. Dymock, Secretary; Charles J. Leighter, Treasurer; and directors, Charles E. Bangle, Loy M. Sparks and James W. Hill. Also present were Charles N. Fadeley, Cooperative’s attorney; Rick Crinklaw, General Manager; Dave D’Avanzo, Manager of Member Services; Debi Wilson, Manager of Office & Staff Services;  Tony Toncray, Manager of Construction & Maintenance; Doug Stockdale, Manager of Engineering Services; and Brenda Everts, Executive Secretary, who acted as recording secretary. 

Member Input

Mr. Jack Billings, Central District board candidate and Mrs. Martha Shearer, Row River District board candidate were present to observe the meeting. Members Lynn Bowers and Dick Lamster were present for the member input portion of the meeting.

 

Approval of the Agenda

President Nelson asked if there were additions or amendments to the agenda. Hearing none, President Nelson declared the agenda approved as presented.

 

Approval of Minutes

President Nelson asked if there were any additions or corrections to the minutes of the regular board meeting held on July 22, 2013. Hearing none, President Nelson then declared the minutes approved as presented. 

 

Reports – Director & Committee

 

·         Committee:  Election & Credentials

 

Mr. Crinklaw reported that the current Referee/Chairman of the Election & Credentials Committee, Martha Shearer, has sent in her letter of resignation.  Mrs. Shearer has been nominated for a seat on the Board of Directors in the Row River District. Following discussion, a motion was made and properly seconded to accept the resignation of Martha Shearer as Referee/Chairman of Lane Electric Cooperative’s Election & Credentials Committee.  The motion was approved my unanimous vote. 

 

Further discussion followed regarding a replacement for Martha Shearer on the Election & Credential committee to appoint as the new Referee/Chairman.  Upon motion made and properly seconded it was moved to appoint John Lundquist to serve as the Referee/Chairman of Lane Electric Cooperative’s Election & Credentials Committee.  The motion was approved by unanimous vote.

 

·         Director:

 

            Facilities Committee:  Director Seubert gave an update on the facilities renovation.

 

·         ORECA Director:

 

            Vice President Seubert, ORECA director, reported on the following items: ORECA Vice President position will soon be open, Legislative Issues, Region 7-9 meeting in Portland; and the completion of the Audit.

 

·         ORECA Government Affairs Committee (GAC):

 

Mr. Crinklaw spoke on the following items: Customer Owned Utility Luncheon to be held in September in Portland, GAC meeting concurrent with Region IX, and 2013 ACRE Membership Status.

 

Report – Manager’s

 

·         Thank You Cards:

Cards and thank you letters were shared with the board.

·         Biological Opinion (BiOp)/ Fish & Wildlife Status:

Mr. Crinklaw gave an update on the following items:

·         The DRAFT Bi-Op completion date is expected to be Mid-August.

·         The FINAL Bi-Op preparation date is expected to be prepared Mid-December.

·         The filing deadline for remanded Bi-Op to the court is Jan 1, 2014. 

·         Bill Maslen, BPA Director of Fish & Wildlife presentation at PNGC

·         The hydro forecast at The Dalles and the Grand Coulee are both near 100%.

·         The progress of the CleanHydro television campaign.

 

·         Regional/Federal Power Issues:

 

Mr. Crinklaw reported on the following issues:

·         BPA’s Administrators Bill Drummond and Anita Decker is still a big issue.

·         BPA’s 2014-2015 power and transmission rate case.

·         The Columbia River Treaty.

 

 

 

 

·         PNGC Financial report:

 

Mr. Crinklaw reported on the current monthly and year-to-date financials for PNGC through June.

·         NRECA RS Plan Update:

 

Mr. Crinklaw reported 72 percent participation in the retirement plan pre-payment program resulting in $1.72 billion in additional contributions.  That increased the actuarial funding ratio from 70 percent to 91 percent. Therefore, it is very unlikely there will be a DRC in the years 2013, 2014, or 2015.  Also, there will not be a base billing rate increase for 2014.

·         CFC Financial Management Training:

 

Mr. Crinklaw reported he recently received a list from CFC listing the director training programs.  He asked the board to review them and identify topics they would like presented.  No topics were suggested.

·         CFC Key Ratio Trend Analysis (KRTA):

 

Mr. Crinklaw reported the 2012 KRTA’s were received late last month.  It was suggested to add the analysis to the August board meeting’s agenda.

·         Net-Metering Installation:

 

Mr. Crinklaw reported on the latest 3 residential net-metering installations.  

·      Bryson Sears Road, Cottage Grove – 3.12 KW Solar system installation with a 13 percent capacity.

·      Territorial Road, Eugene – 3.12 KW Solar system installation with a 14 percent capacity.

·      McFarland Rd, Oakridge – 3.24 KW Solar system instillation with a 14 percent capacity.

That brings the total net-metering participants to 52 residential and two commercial          producing 221,790 kWh per year.

 

·         Pre-Pay Program Update:

 

·      Participants = 653

·      Energy Monitoring = 385

 

Mr. Crinklaw mentioned the goal is to have 10 percent participation by 12/31/13.  Currently, the participation rate is 5.4 percent.

 

·         EPUD Rate Conversion Option:

 

Mr. Crinklaw reported there were 160 legacy customers eligible to receive the option.  To date there have been 39 that have accepted the option.

 

·         Trademark Registration

Mr. Crinklaw reported that Attorney Fadeley has formally registered Lane Electric’s Logo.

 

·         Conferences & Meetings:

·         District Meeting Schedule; Sept 25- Oakridge High School; Oct 8 – Twin Oaks Elementary School, Oct. 10 – Lowell High School, Oct. 21 – Dorena Grange,

Oct. 22 – Upper McKenzie Community Center.

 

·         PNGC Annual Meeting – Doubletree Lloyd Center in Portland September 30 and October 1.

 

·         Region VII & IX Meeting – Portland October 15-17.  ORECA is hosting the meeting and the cooperative will be contributing staff support for registration, ambassadors, etc.

·         Managers Report:

 

            Mr. Crinklaw reported on the following items:

 

·         2013 Director Elections – Aug 28th is the deadline for submittal of nomination petitions.

·         The Electric Cooperative Purpose, A Compass for the 21st Century

·         Power Plays – by Ted Case

·         Directors Transition Plan Retreat November 20, 2013

·         ORECA 2013-2014 Directory hand-out

·         Travel & Meetings Itinerary:

Each director received a copy of Mr. Crinklaw’s travel and meeting itinerary for August and September.  

Attorney Chuck Fadeley arrived for the meeting at 12:00 P.M

 

Policy Review

           

Mr. D’Avanzo, Manager of Member Service reported there was one Policy up for review this month, Policy 305 (Damage to Utility Property).  There was one proposed change in the policy.  A motion was made and properly seconded to move to renew as presented Policy 305 (Damage to Utility Property).  The motion was approved by unanimous vote.

 

EWEB Service Area Transfer – Update

 

Mr. Crinklaw reviewed the history between Lane Electric and EWEB regarding the potential territory transfer and discussed the July 23 press release.  The initial analysis indicates potential benefits to both utilities and the customers.  He reported on the many calls received by the Co-op, mostly from EWEB customers. Overwhelmingly the tone of the calls were positive.  He noted EWEB has invited staff and management to attend a Community Meeting on September 17 to be held at the McKenzie Fire & Rescue Training Center.  Following discussion it was decided the following people in attendance; Rick Crinklaw, Debi Wilson, Tony Toncray; Jeri Nelson and Pat Dymock.

Donation Request 

 

United Way of Lane County 2013 – A motion was made and seconded to donate a dollar for dollar match to the United Way of Lane County2013 campaign.  The motion was approved by unanimous vote.

Veneta Harvest Festival – “Community Assistance Fund” – A motion was made and seconded to donate $ 200 to the Veneta Harvest Festival. The motion was approved by unanimous vote.

Northwest Youth Corps – A motion was made and seconded to donate $400 to the Northwest Youth Corps. The motion was approved by unanimous vote.

Lunch – Construction Work Plan Activities Report

 

Mr. Stockdale gave the quarterly construction work plan activities report.  Upon motion made and properly seconded it was moved to reallocate 27, 000 in capital budget to a different project.  The motion was approved by unanimous vote.

 

Select Recipient for “Member of the Year Award”

 

Mr. D’Avanzo reported on the 4 members that were nominated to receive the “Member of the Year Award”.   President Nelson asked everyone to write down their choice and give it to Attorney Fadeley.  Mr. Fadeley reported that the winner would be Sid Voorhees.  Upon motion made and properly seconded it was moved to select Sid Voorhees Lane Electric’s member of the year.  The motion was carried by unanimous vote.

 

Review Scholarship Program Criteria

 

Dave D’Avanzo and Mr. Crinklaw explained the history behind why Lane Electric limits their scholarship help to Lane Community College.  Discussion followed. A motion was made to expand the scholarship to any accredited University in Oregon.  The motion failed due to lack of a second.

 

Review CFC 2012 Key Ratio Trend Analysis (KRTA)

 

Ms. Wilson, Manager of Office & Staff Services, reviewed and discussed selected ratios from the KRTA.  She also provided a power point presentation that graphically displayed many of the financial ratios comparing Lane Electric with other cooperatives in the state, region and nationally.

 

Review Workers Compensation Insurance Renewal Proposals

 

Ms. Wilson reported that the current workers compensation insurance coverage will expire September 30.  She explained the differences in the proposals received for the 2013-2014 coverage.  The savings are significant compared to current coverage in part due to the improvements in the safety program and commitment of the employees.  The decision is scheduled for next month’s board meeting.

 

2014 Budget Considerations

 

Ms. Wilson, along with Ms. Scoble, Controller, reviewed the budget preparation schedule and discussed general assumptions and how the budget may be affected by items in the strategic plan.  She explained the initial draft is expected to be distributed to the board by the third week in October.

 

Financial Report

 

Ms. Scoble, Controller, along with Debi Wilson reported on the financial condition of the Cooperative for the period ending August 2013. 

 

Safety Program Report

 

Toncray, Manager of Construction & Maintenance, reported the Office safety meeting was held July 18 and the topic was “Self Defense”.  The Construction and Maintenance safety meeting was held July 25.  The topic was “Gas Safety”.  He also reported on the status of the Employee Safety Program through the end of July, and reported there have been 870 days without a time loss injury. 

 

Agenda Items for September 23

·         Donations

·         Dental Insurance Renewal – Pending

·         Review health Insurance proposals

·         Scott Corwin – PPC

·         DRAFT – Strategic Plan objectives

Legal report and Executive Session

 

There being no further business to come before the board in open session, the directors along with Mr. Crinklaw and Mr. Fadeley, entered into executive session.

 

Adjournment

 

Meeting adjourned at approximately 3:00 PM.