Minutes of the Board of Directors’ Meeting

                                                      Lane Electric Cooperative, Inc.

                                                               September 26, 2011

            The regular monthly meeting of the Board of Directors of Lane Electric Cooperative Inc. was called to order by President Jeri Nelson at 11:07 AM on Monday, September 26, 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. Hearing none, President Nelson declared the agenda approved as presented.

Approval of Minutes:  President Nelson asked if there were any additions or corrections to the minutes of the regular board meeting held on August 22, 2011.   Hearing none, President Nelson declared the minutes approved as presented.

Reports:

Director  & Committee

Audit Committee

Director Dymock reported the Audit Committee met prior to the board meeting to discuss attaining an audit for the Cooperative for the next three years.  Upon a motion properly made and seconded it was moved to accept and retain the independent audit firm of Kenneth Kuhns to provide the auditing services for a three year period, 2011, 2012 and 2013.  The motion was approved by majority vote. 

ORECA Planning Committee Meeting

President Nelson reported she attended the ORECA planning committee meeting that was held in Salem.  She mentioned she already sent an e-mail report to all directors.

Lane Electric United Way BBQ 

Director Sparks reported he attended the United Way BBQ that was held at Lane Electric’s headquarters on Thursday, September 22.  The BBQ was a reward for the Cooperative’s employees for exceeding their 2012 fund raising goals.

Manager:  

Thank You Cards:

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

Fish & Wildlife - Biological Opinion (Bi-Op)

Mr. Crinklaw reported that federal judge James Redden had, remanded the Bi-Op back to the federal agencies.  He also reported Public Power Councils’ Executive Director, Scott Corwin’s article that appeared in the Register-Guard’s guest viewpoint titled “No need to rethink salmon plan that pays healthy returns” along with the letters to the editor that followed.

BPA Financials & Rate Case:

Mr. Crinklaw reported that BPA’s average rate increase was 7.8%.  He also noted the net effect for the cooperative will have an influence on the planning for the 2011 and 2012 budget-years.

Residential Exchange Settlement Agreement

Mr. Crinklaw reported there are several utilities that did not sign the Residential Exchange settlement agreement and now have asked to sign.  Bonneville is in the process of distributing an amended Residential Exchange settlement agreement extending the execution date to Jan. 31, 2012.  He reported that all utilities that have previously signed the agreement must sign the amended agreement. 

PNGC Financials – August Results:

Mr. Crinklaw reported year-to-date net income for PNGC was $9.2 million, $5.8 million over budget. He also reported the year-end forecast for net income was $9.4 million.

PNGC Power Portfolio (2015 – 2019):

Mr. Crinklaw reported on the issues surrounding the PNGC 2015 – 2019 power portfolio.  Discussion followed regarding the PNGC strategic education program that was held September 13, at The Valley River Inn. 

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.

Union Pacific Railroad (UPRR) Project

Mr. Crinklaw reported the UPRR Willamette Pass Corridor Project is on schedule.  The following requirements have been met by UPRR and work is scheduled.

  • Advance payment for engineering services
  • Payment construction costs for metering facility
  • Payment the cost of the previous service provided on behalf of UPRR

Smart Meter/Automated Metering Infrastructure (AMI)

Mr. Crinklaw referred to an article in the Council Quarterly newsletter from the Northwest Power and Conservation Council titled “Upgrade the Grid, One Step at a Time”.  He reported Dave D’Avanzo, Manager of Member Services, was quoted in the article regarding the Cooperative’s AMI meters.  He also mentioned a YouTube video on Smart Meters that has prompted a couple of member comments.

Net Metering Installation

Mr. Crinklaw reported there were two residential net-metering systems installed last month for a total of 30 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 mentioned demolition is scheduled for October.  Due to the construction, the October 24 board meeting will be held at t he Hampton Inn.  The annual meeting that is also scheduled for October 24 will be held in the lunch room in the Cooperative’s headquarters.

Landscaping Services

Ms. Wilson reported three competitive proposals were received for the maintenance of the lawn care, flower beds and sprinkler maintenance.  EO Landscaping Services was awarded the job with a substantial savings to the Cooperative.

My Usage

Mr. Crinklaw reported there are 260 members on the Pre-Pay program and 241 on the energy monitoring program.

Managers Report

Mr. Crinklaw reported the PNGC Annual Meeting is scheduled for October 4, at the Crowne Plaza in Portland.

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.

District Meetings

Mr. D’Avanzo handed out the DRAFT Agenda for the District meetings. Discussion followed regarding the agenda and attire.

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 & meeting itinerary for September and October.  

Policy Review:  Policy 604 (Damage to Member Property)

Upon a motion properly made and seconded, it was moved to renew as amended and presented Policy 604 (Damage to Member Property).  The motion was approved by unanimous vote.

Appoint Voting Delegate for Region 9 - Federated

Upon a motion properly made and seconded, it was moved that Director Seubert be authorized to cast Lane Electric Cooperatives’ ballot in the director elections for Federated Rural Electric Insurance Exchange.  The motion was approved by unanimous vote.

Workers Compensation Insurance Renewal

Ms. Wilson, Manager of Office & Staff Services, discussed the current coverage and the proposals from four providers.  Upon a motion properly made and seconded it was moved that Lane Electric Cooperative’s Workers Compensation Insurance coverage for the 2012 coverage-year with Federated Rural Insurance.  The motion failed due to lack of a majority vote.   Upon a motion properly made and seconded to renew Lane Electric Cooperative’s Workers Compensation Insurance coverage for the 2012 coverage year with Oregon Employers Trust.  The motion was approved by majority vote.

2012 Budget Development Status Report

Ms. Wilson gave a preliminary status report on the development of the 2012 budget.  She reported it is not expected a rate increase will be necessary for the 2012 budget year.  The first complete draft of the 2012 budget is expected to be presented at the October 24 board meeting.

Mr. Crinklaw reported regarding the 2011 budget year that due to the cooler winter along with higher margins this year’s revenue is higher than anticipated.  Mr. Crinklaw encouraged the board to consider at the October 24 board meeting the prospect of a one month decrease in November-December time frame; presuming the financial prospects are maintained for the calendar year 2011.  The board directed Mr. Crinklaw to present a revised financial projection for the year 2011 and options for a one month rate decrease.

OPUC Compliance Update

Mr. Stockdale, Manager of Engineering Services, reported all of the 2008-2010 violation notices have been corrected ahead of schedule and under budget.

Ratification of Inclining Block Rate Design

Over the last few months the board had been analyzing several retail rate design options.  Ms. Wilson and Mr. D’Avanzo presented several options with lead block rates of 1500 kWh and an option with a seasonal component.

Upon motion properly made and seconded it was moved to adopt an inclining block rate design based on the principles presented and described in “Option B3” and that the design be effective on member billings rendered after January 1, 2012.  The motion passed by unanimous vote.

Adoption of Revised Rate Schedule L-1 (Yard Lights)

Ms. Wilson, Manager of Office & Staff Services, reported the intent for the proposed revised rate schedule is to recover the actual cost associated with installation of yard lights.  Upon a motion properly made and seconded, it was moved to adopt as amended and presented Rate Schedule L-1 (Yard Lights), and that revised rate schedule be effective November 1, 2011.  The motion was approved by unanimous vote.

 

Presentation of DRAFT Strategic Plan

Mr. D’Avanzo, along with staff members, Debi Wilson, Dave D’Avanzo, and Doug Stockdale discussed the draft version of the strategic plan goals and initiatives.  The final version is scheduled to be presented at the October board meeting.

Financial Report

Ms. Scoble, Controller, reported on the financial condition of the Cooperative for the period ending August 2011. The quarterly budget report was distributed. Ms. Wilson was also present for the report.

Safety Program Report 

Mr. Toncray, Manager of Construction & Maintenance reported on the August and September safety meetings.  The Construction & Maintenance August safety meeting was held August 25.  The topic was “Slips, Trips, & Falls”.  The September Construction & Maintenance safety meeting was held September 22.  The featured topic was “Substation Fire Suppression”.  The Office safety meeting was held September 18.  The topic was “Introduction to Ergonomics”. He reported on the status of the Employee Safety Program though the end of August.  It was reported the employees have worked 172 days without a lost-time incident to date.

Agenda Items for October 24

  • Donations
  • Appoint ORECA Director and Alternate
  • Adopt Strategic Plan
  • Health Insurance Renewal
  • Critique District Meetings

Adjournment

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