Lane Electric - A Touchstone Energy Cooperative

01-27-14

Minutes of the Board of Directors’ Meeting
Lane Electric Cooperative, Inc.
January 27, 2014

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, January 27, 2014, 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; 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 December 16 regular board meeting, President Seubert then declared the minutes approved as presented.

Reports – Director & Committee

• Committee:

Policy Committee Meeting: The board met prior to the board meeting with the intent on looking at possible changes to Policy 108 prior to the regular June renewal date.

General Manager Search & Selection Committee (GMSSC): Director Nelson reported that Ken Holmes, search consultant, has informed her of a scheduling conflict with the dates previous agreed upon. It was suggested to move the interviews to July 28 and move the July Board meeting to July 21. Discussion followed. Upon motion made and properly seconded it was moved to change the July 28 regular board meeting date to July 21 and change the General Manager Search Calendar to schedule the General Manager Candidates’ Reception, Interviews and Selection to the week of July 28. The motion was approved by unanimous vote.

• Director:

Director Report – Director Nelson reported she would like to have arrangements made with CFC for a presentation in regards to Solar Technology. Discussion followed. Upon motion made and properly seconded it was moved to issue an invitation to Dan Kessler and Krishna Murthy to present CFC’s learning module on Solar Disruptive Technology Initiatives at Lane Electric at a date and time to be worked out by our board president and general manager. The motion was approved by unanimous vote.

• ORECA Director:

President Seubert, ORECA director, reported on the strategic planning session held in Salem January 9.

• ORECA Government Affairs Committee (GAC):

Mr. Crinklaw reported on the Governor’s Renewable Portfolio Standard (RPS) Task Force that was created with the purpose of considering revisions in Oregon RPS. ORECA has a delegation working on that task force; Ted Case, ORECA Executive Director, Dave Markham, Central Electric and Steve Eldridge, Umatilla Electric Cooperative.

Report – Manager’s

• Thank You Cards:

Cards and thank you letters were shared with the board.

• Introductions: Julie Stephens, Credit and Customer Service Supervisor
Robin Castle, Data Processing Supervisor
Mary Elkins, Customer Service Representative

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

Mr. Crinklaw gave an update on the following items:

• The final revised Bi-Op
• Status of Columbia and Snake River Chinook run.
• EarthFix (Save our Wild Salmon) Poll: “Dam Removal”
• CleanHydro Campaign

• Regional/Federal Power Issues:

Mr. Crinklaw reported on the following issues:

• The Columbia River Treat
• Bill Drummond formally resigned from BPA
• BPA Rate Case
• BPA Cost Recovery Adjustment Charge (CRAC)

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

• PNGC Financial report:

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

• PNGC Activities:

Mr. Crinklaw reported on the following issues:

• BPA Hydro renewable energy credits
• FERC Deregistration

• ORECA Activities

Mr. Crinklaw reported on the strategic planning session held in Salem on January 9. He also reported for the filth consecutive year ORECA membership dues remained the same at $49,356.

• Pension Legislation

Mr. Crinklaw reported on the status of pension flexibility legislation.

• Net-Metering Installation:

Mr. Crinklaw reported there was two new net-metering installations for the month of December, bringing the total net-metering participants to 54 residential and three commercial systems producing 226,000 kWh per year.

• Pre-Pay Program Update:

• Participants = 757
• Current Percentage = 6.3%
• Goal Percentage by Dec. 31, 2014 = 15%
• Participants needed to meet the goal = 1043

• Frigid Weather Power Prices

Mr. Crinklaw reported per Bloomberg News (01/06/14) “Texas power tops $5,000”
He reported spot electricity prices in Texas exceeded $5,000/MWh. Texas utilities had to purchase power from Mexico and asked their customers to conserve energy.

• Office Sign-in Protocol

Mr. Crinklaw reported on the new process of having all guests sign in at the front desk upon arrival and sign out prior to departure for security and safety measures.

• Board iPads

Mr. Crinklaw explained if anyone experiences any issues with their electronic devises to contact the co-ops’ IT coordinator to get help resolving the issues rather than trying to get family or friends to help.

• Capital Expenditures > $10K

Mr. Crinklaw reported the PO has been signed that authorizes the purchase of a replacement of one service vehicle.

• Conferences & Meetings:

• The Cottage Grove Chamber Awards Banquet will be held January 10. Those scheduled to attend are: Crick & Carla Crinklaw, Dave & Susan D’Avanzo, Faye & Tami Stewart and Director Bangle.

• The Eugene Chamber Celebration of Business/First Citizen Banquet will be held on January 29 at the Eugene Hilton. Those scheduled to attend are: Rick & Carla Crinklaw, Debi Wilson, Directors Bangle and Billings and Julie Daniel & Carolyn Stein from BRING Recycling.

• The Retirement/Open House will be held January 31 at the Cooeprative’s headquarters for two retirees, Ruth Pomplin and Laura Zane.

• The NRECA Annual Meeting will be held February 27 – March 7 in Nashville TN. Those scheduled to attend are Rick Crinklaw, Debi Wilson and Directors Seubert, Billings, Bangle, and Knudsen Obermeyer.

• The NRECA Directors’ Conference is scheduled to be held March 22-25 in St. Louis MO. T Directors Nelson and Dymock are scheduled to attend.

• Managers’ Report:

Mr. Crinklaw reported on the following items:

• Member Input Protocol
• CFC System Integrity Fund Disposition

• Travel & Meetings Itinerary:

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

Policy Review

Mr. D’Avanzo, Manager of Member Service reported on the two policies subject to review, Policy 103 (Audit Committee) and Policy 106 (General Manager Emergency Succession Plan). There were no proposed changes in either Policy. Policy 106 is scheduled to be addressed in executive session due to the sensitive proprietary content. A motion was made and properly seconded to renew as presented Policy 103 (Audit Committee) as presented. The motion was approved by unanimous vote.

Use of CFC System Integrity Funds

Mr. Crinklaw reported the Cooperative was a recipient early in the CFC System integrity fund. The Cooperative has consistently contributed to the fund at the rate of $500 per year with the total contribution balance is at $7,800. The CFC Board has approved an expansion of how the fund resources can be used. Upon motion made and properly secondoned, it was approved to approve contributions made by Lane Electric Cooperative to the CFC Cooperative System Integrity Fund only be used for territorial integrity purposes. The motion was approved by unanimous vote.

Lunch – New Director Orientation Program

Mr. Crinklaw explained the “New Director Orientation Program & Check List” was originally developed 10 years ago and recently has been updated. Discussion followed regarding essential issues and topics to be addressed.

Oregon ACRE Contribution

Mr. Crinklaw reported his service as Chairman for Oregon ACRE as well as a board member for National ACRE. He also gave the background of ACRE and explained the long-established support of the ACRE program from board and staff. Discussion followed. Upon motion made and properly seconded it was approved to contribute to the Oregon Action Committee for Rural Electrification (ACRE) in the amount of $4,000, and that the Cooperative pay the commensurate taxes required by the contribution. The motion was approved by unanimous vote.

EWEB Service Area Transfer – Update

Mr. Crinklaw gave an update on the EWEB service area transfer. Following the board’s decision at the December board meeting to cease consideration of the McKenzie Valley service area transfer, Mr. Crinklaw notified Roger Gray, EWEB General Manager, of the decision. He explained there was not sufficient benefit to either Lane Electric or EWEB to complete the transfer. However, if circumstances should change the issue could be revisited.

Debt Re-Pricing Options

Debi Wilson reported that re-pricing opportunities occur regularly and would results in lowering the interest on existing long term debt.

Financial Report

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

Resolution 1-14 Allocation of Residential Exchange Proceeds (REP) Funds

Debi Wilson explained Resolution 1-14 would authorize the allocation of REP funds to meet the target equity level of at least 40 percent as approved by the board. Discussion followed. Upon motion made and properly seconded it was moved to approve Resolution 1-14, a resolution authorizing the application of Financial Accounting Standards Board Accounting Standard Codification (ACS) 980-4058-25-1 to the Residential Exchange Settlement funds. The motion was approved by unanimous vote.

Safety Program Report

Mr. Crinklaw reported the combined Office and Construction and Maintenance safety meeting was held December 19. The topic was “Hazard Communication – MSDS”. He also reported on the status of the Employee Safety Program through the end of December and reported there have been 488 days without a time loss injury. He also reported at the conclusion of calendar-year 2013 there were no Lost-Time accidents which resulted in a DART rate of zero.

Director Billings also reported on the combined safety meeting.

2014 Safety Performance Indicators
Upon motion made and properly seconded it was moved to ratify the employee Safety Performance Indicators for 2014 as recommended by the Alert & Alive Forum. The motion was approved by unanimous vote.

Agenda Items for February 24

• Donations
• Amendment of Strategic Plan
• Social Media Communications plan
• Consider dates for the 2014 District meeting schedule
• Strategic Plan review
• Review Cyber Risk renewal
• Review Policy 100

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 3:30 PM.