Minutes of the Board of Directors’ Meeting

Lane Electric Cooperative, Inc.

October 24, 2011

 

The regular monthly meeting of the Board of Directors of Lane Electric Cooperative Inc. was called to order by President Jeri Nelson at 11:15 AM on Monday, October 24, 2011, at the Cooperative’s office located at 787 Bailey Hill Rd, Eugene, Oregon.  Directors present were Christopher B. Seubert, Vice-President; Loy M. Sparks, Secretary; Patricia C. Dymock, Treasurer; and directors Charles J. Leighter, Charles E. Bangle, and James W. Hill. Also present were Charles N. Fadeley, Cooperative’s attorney; Rick Crinklaw, General Manager; Dave D’Avanzo, Manager of Member Services; and Debi Wilson, Manager of Office & Staff Services, and Brenda Everts, Executive Secretary, who acted as recording secretary.

 

Call to Order

Member Input

No outside members were present.

Approval of the Agenda

President Nelson asked if there were additions or amendments to the agenda. Mr. Crinklaw requested adding a donation request from the Spencer Creek Grange to the agenda. Hearing no objections, President Nelson declared the agenda approved as amended.

Approval of Minutes

President Nelson asked if there were any additions or corrections to the minutes of the regular board meeting held on September 26, 2011.   Hearing none, President Nelson declared the minutes approved as presented.

 

Reports:

Director  & Committee

Annual Meeting Committee

Director Hill reported the Annual Meeting Committee met prior to the board meeting to critique the recent series of district meetings of which there were five.  He reported all of the meetings were very good.

NRECA Region 9 Meeting

Directors Seubert and Bangle reported on the NRECARegion 9 Meeting that was held in Denver, Colorado, October 10-14.   Director Seubert reported on a new wireless internet company that is causing problems with Global Positioning Systems (GPS).  He reported that he presented a resolution to keep the GPS working properly due to the importance to electric utilities.  The resolution was approved at the Region 9 meeting and now will be presented to other regions. 

Director Bangle reported that he accepted the NRECA International Foundation Award on behalf of the Cooperative.  He also reported on the NWPAA class he attended.  Both directors mentioned it was a very good meeting.

NWPPA Power Supply Workshop

Director Sparks reported on the NWPPA Power Supply Workshop he recently attended in Portland.

Manager: 

      Thank You Cards:

                  Cards and thank you letters were passed around the board table.

PNGC Financials – September Results:

Mr. Crinklaw reported year-to-date net income for PNGC was $9.3 million. He also reported that projected net income was $9.2 million.

           

PNGC CTC Status

Mr. Crinklaw reported consistent with the membership agreement, current and post 2011, PNGC members have contributed equity through purchasing Capital Term Certificates (CTC).  The Cooperatives’ CTC contributions have been executed and purchased. At the end of September, PNGC wired funds representing the difference in purchased CTC’s and projected CTC’s to the Cooperative’s bank account.

 

Union Pacific Railroad (UPRR) Project

Mr. Crinklaw reported the materials and equipment have been ordered to complete the metering facility for the UPRR Willamette Pass Corridor Project in Oakridge. The construction for the metering facility is scheduled to be completed before year-end.

 

King Estate Solar Project – Update

Mr. Crinklaw reported there was an on-site “Partner” celebration on October 17 at King Estate Winery which several local officials attended. The “Switch-Throwing” celebration is scheduled to be held in December or January.

 

2012 LIHEAP (Low Income Home Energy Assistance Program)

Mr. Crinklaw reported with the emphasis on federal deficit reduction to expect less money for LIHEAP next year.  He reported Oregon has been informed to expect a 50% decrease in funding.  The programs are scheduled to commence November 1.

 

            Smart Meter/Automated Metering Infrastructure (AMI)

Mr. Crinklaw reported on a local group “Families for Safe Meters” that is focusing on Eugene Water & Electric Board’s AMI project/deployment. 

 

Net Metering Installation

Mr. Crinklaw reported there were two residential net-metering systems installed last month for a total of 31 residential PV systems installed on Lane Electric’s system, and one commercial application at the Oakridge Elementary School.

 

Multi-Purpose Room Renovation

Ms. Wilson gave an update on the renovation of the multi-purpose room.  She reported demolition is scheduled for the end of October.

 

Election & Credentials Committee

Mr. Crinklaw reported the Bill Dentel asked to be removed from the committee citing health issues.  This will be noted and addressed when the board makes appointments next year.

 

Health Insurance Renewal – Update

Mr. Crinklaw reported the 2012 renewal proposals from Pacific Source will not be available until November 1.  The employee insurance committee will meet November 4 to review the proposals.  The proposals and a recommendation will be presented at the November board meeting.

 

PPC Road Show

Mr. Crinklaw reported the PPC Road Show is scheduled to be held October 26 at EWEB. Directors planning to attend were: Sparks, Leighter, Dymock and President Nelson, along with Ms. Wilson and Mr. Crinklaw.

 

ORECA Annual Meeting

Mr. Crinklaw reported the ORECA Annual Meeting is scheduled for Nov. 30 – Dec. 1, in Salem.  He reported on the two pre-meeting classes that will be held. 

 

Managers Report

Mr. Crinklaw reported the Cottage Grove Community Foundation Annual Dinner will be held on October 27 at “Our Lady of Perpetual Help” in Cottage Grove.

 

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

Travel & Meetings Itinerary

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

 

Policy Review

Policy 303 (Line Extension & Service Relocation)

            Upon a motion properly made and seconded, it was moved to renew as amended and presented Policy 303 (Line Extension & Service Relocation).  The motion was approved by unanimous vote.

 

Donation Requests

            Upon motions properly made and seconded, donations were unanimously approved to the following organizations.

Fern Ridge Kiwanis Holiday Food Drive - $500

SANTA (Sharing Among Neighbors Toy Appeal) - $400

Snack Pack for Kids - $500

Senior Citizens Christmas Food Baskets - $500

Spencer Creek Grange Assistance Program - $500

 

Appointment of ORECA Director & Alternate

            Mr. Crinklaw explained that the board must appoint a representative and an alternate for the ORECA board of directors prior to November 11.

            Upon a motion properly made and seconded, it was moved to appoint President Nelson to be Lane Electric Cooperative’s representative on the board of directors of the Oregon Rural Electric Cooperative Association, and that Mr. Crinklaw be appointed the Cooperative’s alternate representative.  The motion was approved by unanimous vote.

 

Consideration of REP Settlement Amendment

Mr. Crinklaw reiterated there are several utilities that did not sign the Residential Exchange Program (REP) settlement agreement and now have asked to sign.  Bonneville distributed an amended REP settlement agreement extending the execution date to Jan. 31, 2012.  Mr. Crinklaw explained the value in having more utilities supporting the REP Settlement and reported that the PNGC board of directors approved the amendment at the September board meeting.   

Upon a motion made and properly seconded, it was moved to authorize Lane Electric Cooperative’s general manager to execute Amendment No. 1 to the REP Settlement Agreement as received and presented from the Bonneville Power Administration.  The motion was approved by unanimous vote.

           

Adoption of Strategic Plan

Mr. D’Avanzo presented an updated version of the Strategic Plan with the intent that the plan would reflect the board’s direction, priorities and vision.  Upon a motion properly made and seconded it was moved to adopt as presented, with minor changes in issue #6 to change scheduled completion of tasks, the Strategic Plan dated October 24, 2011.  The motion was approved by unanimous vote.

 

Proposal to Acquire AMI Modules

Mr. D’Avanzo presented a memo to the board for consideration to repurpose funds originally earmarked for demand response activities to purchasing the remaining software license for the AMI system platform. Discussion followed.  Additional information will be provided at the November Board meeting in preparation for a decision.

 

Introduction of 2012 Budget

Ms. Wilson gave a preliminary status report on the development of the 2012 budget.  She reported it is not expected that a rate increase will be necessary for the 2012 budget year.  A work session was scheduled to be held November 7 at the Hampton Inn to conduct a detailed, line-by-line review of the proposed 2012 budget.

 

Consideration of 2011 Rate Decrease Options

Mr. Crinklaw reported last month that the 2011 projected year-end financial results looked good with year-end operating margins of approximately $1 million dollars.  The board had asked staff to present updated financial projections and options. Discussion followed. Upon a motion made and properly seconded it was moved to approve a one-month rate decrease with the intention of reducing the Cooperative’s 2011 year-end operating margins by approximately $500.000.  The motion was approved by unanimous vote.

 

Financial Report

Ms. Scoble, Controller, reported on the financial condition of the Cooperative for the period ending September 2011. Ms. Wilson was also present for the report.

 

Safety Program Report

 

          Mr. Toncray, Manager of Construction & Maintenance reported on the September safety meetings.  The   

          September  Construction & Maintenance safety meeting was held September 22.  The featured topic was 

          “Substation Fire Suppression”.  The October Office safety meeting was held October 20.  The topic was “Ladders

          & Stairs”. He reported on the status of the Employee Safety Program though the end of September.  It was

          reported the employees have worked 200 days without a lost-time incident to date.

 

Agenda Items for November 28

 

Donations

Health Insurance Renewal

2012 Board Meeting Dates

Authorize Purchase of AMI Modules

2011 Pre-Audit Conference with Auditors – Executive Session

 

Adjournment

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

___________________________________      ____________________________________

                           President                                                                               Secretary