Lane Electric - A Touchstone Energy Cooperative

06-23-14

Minutes of the Board of Directors’ Meeting
Lane Electric Cooperative, Inc.
June 23, 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, June 23, 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; Tony Toncray, Manager of Construction & Maintenance; and Brenda Everts, Executive Secretary, who acted as recording secretary.

Member Input
Three members, J. Ingred Kessler, Kathy Keable and Lynn Bowers were 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 May 27th regular board meeting. Hearing none, President Seubert then declared the minutes approved as presented.

Reports – Director & Committee

• Committee:

Policy Committee – Director Bangle reported the directors met prior to the board meeting to discuss possible changes to Policy 108.

Member Appointments Committee – Vice President Nelson reported that the Member Appointments Committee met June 2 and June 6 to review the roster of the Election & Credentials Committee and Nominating Committee with the purpose of filling vacancies on those committees if needed. The final action of that committee was to appoint George Letchworth, McKenzie District; Bill Weber, Central District; Warren Weathers, Oakridge District; and Bev McCulley, Oakridge District to the Nominating Committee for three-year terms. The committee also appointed John Lundquist, Row River District, and Joe Canaday, Central District to the Election & Credentials Committee for a three-year term.
• Director:

CFC Forum – Jeri Nelson and Ed Bangle both reported on the CFC meeting held in San Diego, CA. They both e-mailed written reports earlier to all board members.

CFC work session – Directors Billings, Knudsen Obermeyer, and Seubert all attended the CFC work session held in Portland. They all reported it was a very good meeting.

• ORECA Director:

President Seubert gave an update on the agenda for the ORECA Mid-Year meeting to be held in Bend in July.

• ORECA Government Affairs Committee (GAC):

Mr. Crinklaw reported Ted Case testified before Senate Environmental & Natural Resources Committee regarding the proposed “Spill Test”. He also reported that Representative Paul Holvey is being considered for chairman of the House Energy Committee.

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:

o Revised Summer Spill operations for the Lower Snake River Dams
o Spill operations at John Day Dam – Revisions are being considered.
o Corps of Engineers – Capital Improvements
o NW Power & Conservation Council – DRAFT 2014 F & W Program
o Salmon & Steelhead Return Update
o Bird Predation Efforts – Caspian Terns and Brown Pelicans
o Fish & Wildlife Program Costs
o Hydro Forecast

• Regional/Federal Power Issues:

Mr. Crinklaw reported on the following issues:

o BPA Rates
o The Columbia River Treaty
o BPA Oversupply Mitigation
o Energy Northwest Bond Refinancing
o BPA Credit Card Abuses
o EPA Proposed greenhouse Gas Rule

Attorney Chuck Fadeley arrived for the meeting at 11:15 a.m.
• PNGC Financial Management:

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

• PNGC Activities:

Mr. Crinklaw reported on the annual strategic planning session. The focus was on large loads, energy efficiency, and equity planning.

• FERC/NERC:

Mr. Crinklaw reported that with the assistance of PNGC staff, the Cooperative is continuing to work towards deregistration.

• Salt Creek Tunnel Payment:

Mr. Crinklaw reported the annual payment from Mid-State Electric Cooperative related to the Salt Creek Tunnel was received this month. The payment was significantly less due to the power being disconnected and using generators for power during construction.

• FEMA Assistance:

Mr. Crinklaw reported the reimbursement from FEMA was received earlier this month in the amount of $516,000.

• Pre-Pay Program Update:

o Participants = 827
o Goal Percentage by Dec. 31, 2014 = 15%

• Roberts Rules of Order:

Mr. Crinklaw reported he has been working with NWPPA to “Host” a class on Roberts Rules of Order. He will extend an invitation to the local utilities to attend.

• Conferences & Meetings:

o ORECA Mid-Year Meeting will be held July 15-17 at the River House in Bend. Directors Dymock and Leighter are scheduled to attend.

o NRECA Region IX meeting will be held in Omaha Nebraska October 15-17.

• Jim Colley:

Mr. Crinklaw reported Jim Colley a 30 year employee passed away June 7. His memorial was held June 19. Jim was the Oakridge Serviceman for many years.

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• Travel & Meetings Itinerary:

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

Policy Review

Mr. D’Avanzo, Manager of Member Service reported on the policies subject to review: Policy 101 (Election of Officers), Policy 108 (Director’s Fees & Expenses) and Policy 211 (Employee Holiday & Leave Privileges). Upon motion made and properly seconded it was approved to renew as presented Policy 101 (Election of Officers), and renew as amended and presented Policy 211 (Employee Holiday & Leave Privileges). The motion was approved by unanimous vote. A motion was made and properly seconded to table consideration of Policy 108 (Director’s Fees & Expenses) until next month. The motion was approved by unanimous vote.

Vegetation Management Policy – DRAFT

Tony Toncray along with Bud Dyer were present to discuss the DRAFT Vegetation Management Policy. Following lengthy discussion. Director Leighter made a motion to approve Policy 308 (Vegetation Management). Following discussion the motion died due to lack of a second. The DRAFT policy will be on the agenda for adoption at the July board meeting.

Member, Lynn Bower left the meeting at 12:35

Appointment of Region IX Voting Delegate

Upon motion made and properly seconded it was approved to appoint the following individuals to serve as voting delegates representing Lane Electric Cooperative at the regional meetings for the following organizations:

• National Rural Electric Cooperative Association (NRECA)
Delegate: Chris Seubert Alternate: Susan Knudsen Obermeyer

• National Rural Utilities Cooperative Finance Corp. (CFC)
Delegate: Chris Seubert Alternate: Susan Knudsen Obermeyer

• National Cooperative Services Corporation (NCSC)
Delegate: Chris Seubert Alternate: Susan Knudsen Obermeyer

• CoBank
Delegate: Chris Seubert Alternate: Susan Knudsen Obermeyer

The motion was approved by unanimous vote.

Lunch – Retrospective Movie “The Columbia: America’s Greatest Power Stream”
Strategic Plan Amendment

Mr. Crinklaw explained the requested amendment of the strategic plan to include evaluation and development of a community solar project. Following discussion, a motion was made and properly seconded to amend the Cooperatives strategic plan as presented – Issue #4: Power Supply, Strategic Objective #3, and revising Task #4 to address development of Community Solar Project. The motion was approved by unanimous vote.

Renewable Energy Credit Acquisition Options

Mr. Crinklaw reported that staff, along with PNGC, have been tracking Lane Electric’s Renewable Energy Credit (REC) inventory. Oregon’s Renewable Portfolio Standard (RPS), goes into effect in 2025 and Lane Electric would need to satisfy the 5% requirement by then. The cost of the REC’s are extremely low compared to forecasted prices post-2025. Staff presented a REC purchasing strategy for consideration. Upon motion made and properly seconded it was approved to direct the Cooperative’s General Manager to acquire Renewable Energy Credits in an amount not to exceed $25,000 for the purpose of applying towards the Cooperatives’ Renewable Portfolio Standard obligation subject to Oregon statute. The motion was approved by unanimous vote.

Consideration of Potential Bylaw Amendments

Mr. Crinklaw explained that to be consistent with the annual meeting planning schedule, any recommended bylaw amendments need to be brought before the Bylaw Committee soon. Director Billings, Committee Chair discussed the procedure and asked that any amendments be forwarded to him. The board then directed Attorney Fadeley to develop proposed language for any suggested amendments.

Ratify Renewal of CoBank Line of Credit

Ms. Wilson explained the board officers have changes since the original signatures were required for the CoBank line of credit, making it necessary to sign a new Incumbency Certificate. Upon motion made and properly seconded it was moved to direct the Cooperative’s officers to execute a new incumbency certificate with CoBank to allow for the renewal of an existing line of credit with Co-Bank. The motion was approved by unanimous vote.

Financial Report

Ms. Scoble, Controller, along with Ms. Wilson reported on the financial condition of the Cooperative for the period ending May 2014.

Safety Program Report

Tony Toncray, Manager of Construction & Maintenance, reported the Office safety meeting and the Construction and Maintenance safety meeting will be combined this month and held on June 26th. The topic will be “Pole Top & Bucket Rescue and Review of the MAYDAY Procedures.” He also reported on the status of the Employee Safety Program through the end of May and reported there have been 630 days without a time loss injury.

• Agenda Items for July 21

o Donations
o Waiver of Notice
o PNGC Work plan
o Call for Candidates – Member of the year
o Policy 108
o Capital Credits

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 4:30 p.m.