Minutes of Regular Board Meeting May 14, 2008
The Regular Meeting of the Board of Directors of the Central Lincoln People’s Utility District was held at the Newport PUD office, on the 14th day of May 2008 at 10:00 a.m. Pacific Daylight Time. President Benfield called the meeting to order and asked that the roll be called.

Members present:

Curt Abbott
Ron Benfield
Larkin Kaliher
Judy Matheny

Members absent:

Tom Tymchuk

Others present:

Paul Davies, General Manager
Matt Boshaw, Distribution Engineering/Operations Manager
Julie Brown, Executive Assistant
Gary Cockrum, Communications Manager
Chris Chandler DiTorrice, Community and Economic Development Administrative Manager
Dennis Hinton, Customer Service Supervisor
Mike Sleight, Customer Service Supervisor
Mike Wilson, Chief Engineer

Executive Session

President Benfield adjourned the regular meeting at 10:05 a.m. and declared that an Executive Session be convened for the purpose of conferring with legal counsel concerning current litigation or litigation likely to be filed (pursuant to ORS 192.660(2)(h).

The Executive Session was adjourned and the regular meeting was reconvened at 10:55 a.m. Mr. Boshaw, Mr. Cockrum, Mrs. DiTorrice, Mr. Hinton, Mr. Sleight, and Mr. Wilson joined the meeting at this time.

Consent Agenda

The Board took action to approve the following consent agenda items as presented:

1. Minutes of the April 23, 2008 Regular Board Meeting;

2. Vouchers for April, 2008;

3. Petty Cash for April, 2008;

4. Uncollectibles for April, 2008;

5. Directors Cash Report dated May 14, 2008.

Visitors Recognized

President Benfield welcomed the District’s staff to the meeting.

Acting Treasurer

It was the consensus of the Board that Larkin Kaliher be appointed acting Treasurer in Mr. Tymchuk’s absence.

Employee Forum

Mr. Davies discussed the format and agenda for the Employee Forum to be held on June 18^th at the Yachats Commons, starting at 9:30 a.m. The meeting will be facilitated by Dr. John Baker.

Financial Condition, pg. 4

President Benfield asked Mr. Davies to report on the District’s financial condition in accordance with the Board’s Governance Policy. Mr. Davies briefly reviewed his report. He reported that the District’s current Operating Budget is expected to come in on budget and the Capital Budget will come in under budget due primarily to the Enterprise Solution rolling forward to FY- 09. The August report to the Board will reflect the actual for FY-08.

Compensation and Benefits

President Benfield asked Mr. Davies to report on Compensation and Benefits in accordance with the Board’s Governance Policy. Mr. Davies reported that salaries for non-union personnel are based on a market survey performed annually (Northwest Utilities Salary, Wage & Benefits Survey). He reported that Union negotiations have been completed through March 31, 2010.

It is anticipated that medical costs will escalate by 10% next year; however medical claims are down which will result in a 4% reduction in medical premiums.

Energy Economics

Mr. Davies reported on the following energy issues:

• A memo sent to the Board that showed the new rate impact model from Bonneville Power Administration.

• Central Lincoln had signed an agreement with Energy Authority who will be our adviser for slice product.

• Theresa Rockwood, the Account Executive and the slice project manager from Bonneville Power Administration will attend the next Board meeting to give a presentation on slice in general.

Newport Office Renovation -- Bid # 04-004-08

Mr. Davies reported that bids were opened on May 8, 2008 for Bid No. 04-004-08, for the Newport office renovation. He stated that after reviewing the bids, it is staff’s recommendation to award the project to the lowest bidder, Craig S.Hoffman, Inc. at a bid price of $1,735,000.00. Discussion was held and the following motion was made.

Motion: Mr. Kaliher moved and Mr. Abbott seconded that Bid No. 04-004-008 be awarded to the lowest bidder, Craig S. Hoffman at a bid price of $1,735,000.00.
Aye: Abbott, Kaliher, Matheny, Benfield.

Budget/Forecasting, pg. 3

President Benfield asked Mr. Davies to report on Budget/Forecasting in accordance with the Board’s Governance Policy. Mr. Davies discussed the 5 Year Projected Operating Capital Plan for 2009-2013, the Capital Plan and a Budget Comparison. After discussion the following motion was made.

Motion: Mr. Kaliher moved and Mr. Abbott seconded that the Budget and Capital Plan for fiscal year 2009 be approved as presented.
Aye: Abbott, Kaliher, Matheny, Benfield.

Bonneville Power Administration Residential Exchange

After a discussion on the BPA Residential Exchange the following motion was made.

Motion: Mr. Abbott moved and Mr. Kaliher seconded to retain the legal firm, Cable Huston, to prepare a brief on the Load Reduction Agreement (LRA) and file it with BPA.
Aye: Abbott, Kaliher, Matheny, Benfield.

June Board Meeting Agenda

The following items are to be included on the agenda for the June 18^th Workshop/Board meeting which is scheduled to be held in the Yachats Commons.

Workshop (9:30 a.m.) Employee Focus Group; BPA Presentation/Theresa Rockwood;Award Presentation – Kay Moxness

Strategic Issues: Employee Focus Group Discussion, NWPPA National Meeting Discussion, Energy Economics

Board Action: Award Bid for South Beach Renovation,

Consent Agenda: Minutes, vouchers, petty cash, uncollectibles,Director’s cash report.

Osprey Platform
Mr. Davies discussed a picture of an osprey platform built by the Florence PUD.

Directors’ Discussion

Minutes of Regular Board Meeting March 19, 2008
The Regular Meeting of the Board of Directors of the Central Lincoln People’s Utility District was held at the Newport PUD office, on the 19th day of March 2008 at 10:00 a.m. Pacific Daylight Time. President Benfield called the meeting to order and asked that the roll be called.

Members present:

Curt Abbott
Ron Benfield
Larkin Kaliher
Judy Matheny
Tom Tymchuk

Others present:

Paul Davies, General Manager
Brian Barth, Accounting, Finance, and Customer Service Manager
Matt Boshaw, Distribution Engineering/Operations Manager
Julie Brown, Executive Assistant
Gary Cockrum, Communications Manager
Chris Chandler DiTorrice, Community and Economic Development Administrative Manager
Mike Wilson, Chief Engineer

President Benfield welcomed the District’s staff and visitors to the meeting.

The Board took action to approve the following consent agenda items as presented:

1. Minutes of the February 20, 2008 Regular Board Meeting;

2. Vouchers for February, 2008;

3. Petty Cash for February, 2008;

4. Uncollectibles for February, 2008;

5. Directors Cash Report dated March 19, 2008.

Mr. Davies asked Mr. Wilson to brief the Board on the BPA 2009 Twenty Year Power Sales Contract options included in the Regional Dialogue. Mr. Wilson discussed Load Following, Slice and Block products and Tiered Rates.

Mr. Davies reminded the Board of the discussion with Mr. Scott Corwin, the Executive Director of the Public Power Council (PPC) at the February Board meeting. Discussion was held on the possibility of Central Lincoln rejoining PPC. After discussion, the following motion was made:

Motion: Mr. Tymchuk moved and Mr. Kaliher seconded that Central Lincoln rejoin the Public Power Council with annual dues of $45,000.00.
Aye: Tymchuk, Matheny, Abbott, Kaliher, Benfield.

Mr. Davies explained that there are two processes currently in motion concerning the future of the Newport office building, including:

• An RFP, to purchase15 acres of land, with the option of selling or trading Central Lincoln’s existing parcels.
• Renovation of the current Newport office building and the South Beach facility.

He reported that staff would like to present these options in their entirety, to the Board on April 23, 2008. After discussion, the following motion was made.

Motion: Mr. Abbott moved and Mr. Kaliher seconded to move the April 16th Board meeting to April 23, to allow time for the Newport renovation options to be completed.
Aye: Tymchuk, Matheny, Abbott, Kaliher, Benfield.

A brief discussion was held on the Board’s governance policy on Board/GM Relations, pgs. 20-24. President Benfield explained that after reviewing the General Manager’s current compensation and benefits package, the Board recommended a 10% increase in salary for the new fiscal year. After discussion, the following motion was made:

Motion: Mr. Kaliher moved and Mrs. Matheny seconded that Resolution No. 851 be adopted, fixing the General Manager’s salary at $14,152.00 per month, effective July 1, 2008.
Aye: Tymchuk, Matheny, Abbott, Kaliher, Benfield.

Mr. Davies reported that the bids opened on March 12, 2008 for a manufacture(s) to build to the District’s specifications, 110 single-phase padmount transformers had been evaluated. He explained that after reviewing the bids, it is staff’s recommendation to award the entire bid of sixty 25-KVA padmounts and fifty 50-KVA padmounts (110 total) to the low evaluated bidder, Central Maloney Electric, at a total bid cost of $180,710.00. Material Systems total bid estimate was $260,000.00 After discussion, the following motion was made:

Motion: Mr. Abbott moved and Mr. Kaliher seconded that Bid No.04-003-08 for purchase of 110 padmount transformers be awarded to the low evaluated bid of $180,710.00, from Central Maloney Electric.
Aye: Tymchuk, Matheny, Abbott, Kaliher, Benfield.

Discussion was held on the recent Residential Exchange contract offer from BPA. After reviewing the offer, it was the consensus of the Board that the General Manager would not be given authority to sign, given the risk of future true up, and it was noted that the rate case should be completed by this fall.

The following items are to be included on the agenda for the April 23^rd Regular Board Meeting scheduled to be held in Florence:

Workshop / Board Meeting (10:00) - Capital Plan

Monitor AIMS / Exec Limits- Customer Feedback, Asset Protection, NWPPA Annual Meeting delegates, APPA Annual Meeting delegates

Board Action/Review and Assess - RFP’s for Newport Office Renovation, Energy Economics

Consent Agenda - Minutes, vouchers, petty cash, uncollectibles, and Director’s Cash Report.

Request for Proposal / Bid Process
Discussion was held on Central Lincoln’s current bid and RFP process. It was decided that in the future, staff would notify the Board of the intention to advertise for bid, and would continue to request permission to Award from the Board, for bids over $150,000.00 (Resolution No.835), to expedite the RFP/Bid process.

21st Century High Volume Call System
Mr. Davies asked Mr. Boshaw to update the Board on the new high-volume call system. Mr. Boshaw reported that the system has been working well and a lot of positive feedback has been received. The system will continue to be monitored closely.

Special Districts Assoc. Of Oregon
Mr. Davies reported that Mr. Patrick had applied for and received a matching funds grant from SDAO towards the purchase of several new GPS systems for Central Lincoln’s servicemen and staff.

Five-Year Plan
Mr. Davies briefly discussed a memo sent to the Board that included additional comments for clarification on the five-year plan.

Legislative Issues
Mrs. DiTorrice briefly discussed some current legislative issues including an OPUDA long-term contract with the Romain Group. She reported that this matter will be reviewed further at the March 21st OPUDA meeting in Salem.

Western Electricity Coordinating Council Compliance
Mr. Davies reported that Central Lincoln had successfully completed a "tabletop audit" from WECC.

Reedport Chamber of Commerce
Mr. Davies commented on a letter sent to Central Lincoln from Representative Arnie Roblan from House District 9, congratulating Central Lincoln on a Community Service Award.

Standard & Poor’s
Mr. Davies commented on Central Lincoln’s current ratings in the 2008 Standard and Poor’s listing.

Online Forms
Discussion was held on the selection of forms available to customers on Central Lincoln’s website.

Oregon People’s Utility Districts Association
A discussion was held on a questionnaire recently sent out by the OPUDA facilitator to the Board of Directors.