Lane Electric - A Touchstone Energy Cooperative

2013 December

Minutes of the Board of Directors’ Meeting
Lane Electric Cooperative, Inc.
December 16, 2013

The regular monthly meeting of the Board of Directors of Lane Electric Cooperative Inc. was called to order by President Christopher B. Seubert at 11:00 AM on Monday, December 16, 2013, at the Cooperative’s office at 787 Bailey Hill Rd, Eugene, Oregon. Directors present were Jeri Nelson, Vice-President; Charles E. Bangle, Secretary; Patricia C. Dymock, Treasurer; and directors, Charles J. Leighter, Susan Knudsen Obermeyer and Jack Billings. 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
There were no members present to observe the meeting.

Approval of the Agenda
President Seubert asked if there were additions or amendments to the agenda. Hearing none, President Seubert declared the agenda approved as presented.

Approval of Minutes
President Seubert asked if there were any additions or corrections to the minutes for the November 25 regular board meeting or for either of the special meetings held December 9 and December 12. Hearing none, President Seubert then declared all three sets of minutes approved as presented.

Reports – Director & Committee

• Director:

ORECA Annual Meeting – President Seubert along with directors Dymock, Leighter, Nelson, and Billings reported on the ORECA Annual Meeting held in Salem at the Grand Hotel, December 3-5. Director Dymock reported she handed out a written report and President Seubert and Director Nelson reported they had sent an e-mail report to all directors prior to the board meeting.

General Manager Search & Selection Committee (GMSSC): Director Nelson reported the GMSSC committee met prior to the board meeting via conference call with Ken Holmes. Mr. Holmes discussed the timeline, processes and key issues with the board. Upon motion made and properly seconded it was moved to approve the schedule for the GMSSC search proposed by NRECA. The motion was passed by unanimous vote.

Safety Committee Meeting: Director Billings reported on the safety meeting held on November 27, the topic was “Hazard Communications”. He mentioned it was a very good meeting.

• ORECA Director:

President Seubert, ORECA director, reported the ORECA Board of Directors elected Executive Committee officers at its December 5 Board Meeting. The officers are as follows:

ORECA President – Dave Markham (Central Electric Cooperative)
Vice-President – Chris Seubert (Lane Electric Cooperative)
Secretary-Treasurer – Bob MacPherson (Umatilla Electric Cooperative)
Executive Committee Members
At-Large – Alicia Bonesteele (Salem Electric)
– Bob Durham (Wasco Electric Cooperative)
– Immediate Past President Roman Gillen (Consumers Power)

• ORECA Government Affairs Committee (GAC):

Mr. Crinklaw reported on the creation of the Governors Renewable Portfolio Standard Task Force.

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 final revised Bi-Op is expected to be prepared by mid-December.
• The filing deadline for remanded Bi-Op is Jan. 1, 2014.
• Status of Columbia and Snake River Chinook run.
• NOAA proposed delist of Stellar Sea Lions from Endangered Species Act

• Regional/Federal Power Issues:

Mr. Crinklaw reported on the following issues:

• Residential Exchange Program
• Employment status of BPA’s Administrator and Deputy Administrator
• Congressional Engagement
• The Columbia River Treaty

Mr. Crinklaw reported that he testified on The Columbia River Treaty December 9, at a field hearing of the House Natural Resources Committee in Pasco, Washington, with Chairman “Doc” Hastings (R-WA) and Ranking Member Rep. Peter DeFazio (D-OR) in attendance.

• PNGC Financial report:

Mr. Crinklaw reported on the current monthly and year-to-date financials for PNGC through November. He also reported the 2013 audit is complete and that he was the chairman of the Audit Committee. He reported that Moss-Adams delivered a clean and unqualified opinion and the committee recommended PNGC board accepts the audit report. The PNGC board accepted the 2013 audit report.

• PNGC Activities:

Mr. Crinklaw reported on the following issues:

• BPA Hydro REC’s
• Demand Response Committee
• Oregon Hydro Initiative
• Coffin Butte Project

• Net-Metering Installation:

Mr. Crinklaw reported there was one new net-metering installation for the month of November, bringing the total net-metering participants to 53 residential and two commercial systems producing 225,000 kWh per year.

• Pre-Pay Program Update:

• Participants = 746
• Current Percentage = 6.3%
• Goal Percentage by Dec. 31, 2013 = 10%
• Participants needed to meet the goal = 454

He also reported the names of the two $250 winners of the pre-paid drawing held Dec. 13.
Amanda Hicks, Cottage Grove; and Steven Weatherly, Oakridge.

• Conferences & Meetings:

• Eugene Chamber Celebration of Business/First Citizen Banquet, Wednesday January 29 at the Eugene Hilton.

• NRECA Annual Meeting to be held Feb. 27 – March 7 in Nashville TN. Registration is now open. Please let Brenda know if you plan on attending.

• Managers Report:

Mr. Crinklaw reported on the following items:

• CFC System Integrity Fund Disposition
• The bylaws have been revised and reprinted

• Travel & Meetings Itinerary:

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

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

Policy Review

Mr. D’Avanzo, Manager of Member Service reported on the two policies subject to review, Policy 102 (Replacement of Director Midterm) and Policy 203 (Compensation Administration – Exhibit 1). There were no proposed changes in Policy 102. A motion was made and properly seconded to renew as presented Policy 102 (Replacement of Director Midterm). The motion was approved by unanimous vote. It was determined to discuss Policy 203 (Compensation Administration – Exhibit 1) in executive session.

Donation Request

A motion was made and properly seconded to donate $360 to the Blue McKenzie Lions Club, $360 to The Fern Ridge Library, and $360 to the McKenzie River Reflections – McKenzie River History Project -NewsArk. Following discussion, a motion was made to amend the motion to donate $540 to the Blue McKenzie Lions Club and $540 to the Fern Ridge Library. The motion to amend died due to the lack of a second. Following further discussion, the original motion and second were withdrawn.

Blue McKenzie Lions Club – A motion was made and seconded to donate $ 500 to the Blue McKenzie Lions Club – Community Dinner. The motion was approved by unanimous vote.

Fern Ridge Library Foundation –A motion was made and properly seconded to donate $380 to the Fern Ridge Library Foundation. The motion was approved by unanimous vote.

McKenzie River Reflections – McKenzie River History Project-NewsArk –A motion was made and properly seconded to donate $ 200 to the McKenzie River Reflection – McKenzie River History Project-NewsArk. The motion was approved by unanimous vote.

Lunch – Construction Work Plan Activities Report

Mr. Doug Stockdale gave the quarterly Construction work plan activities report.

Appoint Voting Delegates

Upon motion made and properly seconded it was moved to appoint the following individuals to serve as representatives for Lane Electric Cooperative:

• National Rural Electric Cooperative Association (NRECA)
 Director: Director Bangle, Alternate; Mr. Crinklaw
• National Rural Utilities Cooperative Finance Corporation – (CFC)
 Director: Director Bangle, Alternate; Mr. Crinklaw
• National Rural Telecommunications Cooperative (NRTC)
 Director: Director Bangle, Alternate; Mr. Crinklaw

Approve Attendance at CoBank Pacific West Customer Meeting

The board discussed that Policy 108, section II.C.4 limits the directors to attend the following meetings; annual NRECA member meetings, NRECA director conferences, annual Region IX meetings, NWPPA annual meetings, and annual and mid-annual ORECA meetings in a year. It was discussed to also include the Co-Bank meeting as an approved meeting to attend. A motion was made and properly seconded to pre-approve CoBank meeting be included as an approved meeting for Directors to attend during the year. The motion was approved by unanimous vote.

Adopt Strategic Initiatives & Objectives

Mr. D’Avanzo discussed the Strategic Initiatives & Objectives – A motion made and properly seconded to move to approve as presented and amended the Strategic Initiatives & Objectives. The motion was approved by unanimous vote.

Ratify Revised Rate Schedules

Debi Wilson explained that following the adoption of the 2014 budget at last month’s board meeting, the board authorized a general rate increase of seven percent, together with revisions in the basic charges, effective an all bills rendered on or after January 1, 2014. Ms. Wilson discussed the revised versions of Lane Electric’s rate schedules to reflect those changes. Following a discussion regarding ratifying the revised rate schedules, a motion was made and properly seconded to approve effective with bills rendered on or after January 1, 2014. The following rate schedules applicable to Lane Electric Cooperative:

• Schedule GS-1 (General Service Single-Phase)
• Schedule GS-3 (General Service Three-Phase)
• Schedule GS-1C (General Service Single-Phase Commercial)
• Schedule RS-1 (Remote Site Service)
• Schedule EV-1 (Electric Vehicle Charging Station)
• Schedule IS-5 (Irrigation Service)
• Schedule L-1 (Yard Lights)
• Schedule L-2 (Customer-Owned Street Lighting Service)
• Schedule SL-3 (Street Lighting Service)

The motion was approved by unanimous vote.

EWEB Service Area Transfer – Update

Tony Toncray and Debi Wilson gave an update on the EWEB Service Area Transfer.

Financial Report

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

Safety Program Report

Toncray, Manager of Construction & Maintenance, reported the Office safety meeting was held November 21, and the topic was “Winter Driving”. The Construction and Maintenance safety meeting was held November 27. The topic was “Winter Driving”. He also reported on the status of the Employee Safety Program through the end of November and reported there have been 441 days without a time loss injury.

Agenda Items for January 27

• Donations
• Use of CFC Integrity fund
• Fox Hollow Substation Vegetation Management Plan – Update
• Resolution – Allocation of REP Proceeds
• Policy 100 – review
• Oregon ACRE contribution
• 2014 Safety Performance Goals

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.

The board reconvened from Executive Session. The extensive discussion of negotiations concerning possible transfer of EWEB service territory was noted. A motion was made and properly seconded to respectfully decline EWEB’s last transfer offer. The motion was approved by unanimous vote.

Following discussion regarding a general salary wage increase, a motion was made and properly seconded to amend Exhibit 1 of Policy 203 (Compensation Administration) to effect a general salary wage increase of 1.7% for all positions listed in Exhibit 1, effective January 1, 2014. The motion was approved by unanimous vote.

Adjournment

Meeting adjourned at approximately 3:30 PM.