Lane Electric - A Touchstone Energy Cooperative

11-24-14

Minutes of the Board of Directors’ Meeting
November 24, 2014

President Christopher B. Seubert called to order the Lane Electric Cooperative Inc. Board of Directors’ regular monthly meeting at 11:05 AM on Monday, November 24, 2014, at the Cooperative’s office at 787 Bailey Hill Rd, Eugene, Oregon. Directors present were Susan Knudsen Obermeyer, Vice-President; Charles E. Bangle, Secretary/Treasurer; and directors, , Jeri Nelson, , J. Ingrid Kessler, and Jack Billings. Absent from the meeting was Director Kathy Keable.
Also present at different times in the meeting were Charles N. Fadeley, Cooperative attorney; Matt Michel, 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.
There were no members present.
Attorney Fadeley arrived at 11:00 am for the meeting.

Approval of the Agenda
President Seubert asked if there were additions or amendments to the agenda. Mr. Michel asked to include another donation request to the agenda. Hearing no objections, President Seubert declared the agenda approved as amended.

Approval of Minutes
President Seubert asked if there were any additions or corrections to the October 27, 2014 board meeting minutes. Hearing no corrections or comments, President Seubert then declared the minutes approved as presented.

Safety Program Report
Tony Toncray, Manager of Construction & Maintenance, reported that the October 16h Office safety meeting topic was “Hearing Protection & Conservation.” The October 23rd Construction and Maintenance safety meeting topic was “Substation Truck Weights and Inspections”. He also reported on the status of the Employee Safety Program through the end of September and reported there have been 788 days without a loss- time injury.

Financial Report
Cynthia Scoble, Controller, along with Debi Wilson, Manager of Office and Staff Services, reported on the financial condition of the Cooperative for the period ending October 2014.

Reports

  • Committee:

– Budget Committee Report – Director Bangle reported on the budget workshop.
– Safety Committee – Directors Billings and Knudsen Obermeyer both reported on the safety meetings they attended.

  •   Director: None
  •   ORECA Director:

– President Seubert reported there are 175 people registered for the ORECA Annual Meeting to be held in Salem December 2-5.

  • ORECA Government Affairs Committee (GAC): Mr. Michel reported on several issues:

– Carbon Tax
– Net Metering/Solar Proposals
– ODOE “Cool School” proposal
– Energy Supplier Assessment
– EPA Clean Power Plan
– NRECA Legislative Conference

  •  Manager: Matt Michel shared the thank you notes received. He also reported on several issues:

– Monica Schmidt Survey
– TouchStone Energy Survey
– PNGC Board summary
– PPC Energy imbalance market

Policy Review
Dave D’Avanzo, Manager of Member Service reported on the policies subject to review and discussion occurred:

• Policy 302 (Safety & Loss Control Activities): Upon motion made and properly seconded it was unanimously approved to adopt Policy 302 concerning Safety & Loss Control as amended.

• Policy 603 (Donations & Contributions): Upon motion made and properly seconded it was unanimously approved to adopt Policy 603 concerning Donations & Contributions as amended.

General Manger Matt Michel reported on the recommended changes to the net metering policy and discussion occurred.

• Policy 311 (Net Metering Services): Upon motion made and properly seconded it was unanimously approved to adopt Policy 311 concerning Net Metering Service as amended.

Approve 2014 Audit Engagement Agreement
The Lane Electric Board of Directors, acting as the Audit Committee, met with Kenneth Kuhns and Darrin Born of Kenneth Kuhns & Company for the 2014 Pre-Audit Conference.

President Seubert noted the GM General Manager and Board changes. Mr. Kuhns went over the general approach to the audit. Last year’s budget expectation was 40% equity. The audit will look at whether the expectation was reached and, if not, why not (and does the explanation make sense)? Mr. Born discussed the mechanics of how the audit review is performed to check that the financial statements are fairly presented. Mr. Kuhns noted the approximately $500,000 in FEMA funds for the big 2014 snowstorm. This requires a review of internal control and expenditures to ensure compliance with Federal rules. Mr. Kuhns will submit an addendum to the Audit Engagement (maximum $2,500) if a FEMA mandated “single audit” is needed.

The Audit Committee went into executive session with the auditor and system board 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, 2014 under the engagement as proposed with an addendum to include a FEMA single audit, if needed, for a maximum if $2,500.00.

 

Resolution 6-14 Re-adopt Executive Compensation Plan
Upon motion made and properly seconded, it was unanimously moved to adopt Resolution
6-14: A Resolution to Re-adopt Lane Electric Cooperative’s Executive Compensation Plan.

Review Health Insurance Proposals
Upon motion made and properly seconded, it was unanimously moved to authorize the renewal of medical insurance coverage for the Cooperative’s employees with Providence Health Plan.

Consider adoption of 2015 Budget
Debi Wilson, Manager of Office and Staff Services, reported on the recommended 2015 operating and capital budgets. Discussion occurred
Upon motion made and properly seconded, it was unanimously approved to adopt the operating and capital budget as presented and identified as Version 2 for fiscal year 2015.
Upon motion made and properly seconded, it was unanimously moved to authorize revisions in the Cooperative’s retail rate schedules to effect a 5.1% revenue increase to include setting the Basic Charge for the GS-1 rate schedule to $18.00, to be made effective to al1 billings rendered on or after January 1, 2015.

Lunch – Member Input
No Member input.

Approve 2015 Board Meeting Dates
Upon motion made and properly seconded, it was unanimously approved to accept the 2015 Board Meeting dates with a change in the December date from December 28 to December 21.

Donation Request
Toys for Tots – Upon motion was made and properly seconded it was unanimously approved to donate $400 to the Toys for Tots program.

Fern Ridge Library Foundation – Upon motion made and properly seconded, it was unanimously approved to donate $400 to the Fern Ridge Library Foundation.

McKenzie Education Foundation – Upon motion made and properly seconded, it was unanimously approved to donate $400 to the McKenzie Education Foundation.

Kiwanis Food Drive – Upon motion made and properly seconded, it was unanimously approved to donate $500 to the Kiwanis Food Drive.

Agenda Items for December 22
o Donations
o Travel
o Policy 203
o Appoint Annual Meeting Voting Delegates
o Strategic Plan Review

Adjournment
Meeting adjourned at approximately 2:40 p.m.