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.

Minutes of Regular Board Meeting, February 20, 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 20th day of February 2008 at 10:00 a.m. Standard Time. Vice President Abbott called the meeting to order and asked that the roll be called.

Members present:

Curt Abbott
Larkin Kaliher
Judy Matheny
Tom Tymchuk

Members absent:

Ron Benfield

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
Doug Dawson, Communications and IT Manager
Mike Wilson, Chief Engineer
Scott Corwin, Executive Director of Public Power Council

Vice President Abbott 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 January 11th, 2008 Regular Board Meeting;

2. Vouchers for January, 2008;

3. Petty Cash for January, 2008;

4. Uncollectibles for January, 2008;

5. Directors Cash Report dated February 20, 2008.

Vice President Abbott asked Mr. Scott Corwin, the Executive Director of PPC, if he would like to address the Board. Mr. Corwin gave a brief history of the Public Power Council and explained that PPC is an association representing the common interests of consumer-owned electric utilities in the Pacific Northwest.

Vice President Abbott asked Mr. Dawson to report on the District’s upcoming high volume call system. Mr. Dawson compared our existing answering capacities to Twenty First Century’s capabilities. He demonstrated how the system would actually work by placing a call and initiating a callback to show the procedure.

Mr. Davies reported that the bids opened on January 16, 2008 for a contractor to furnish labor and equipment to construct the K-11 Transmission Line in Florence Oregon, had been evaluated. He noted that it is staff’s recommendation that the low bid of $655,072.55 from Hawkeye Construction be awarded. Discussion was held and the following motion was made.

Motion: Mr. Kaliher moved, and Mrs. Matheny seconded, that Bid No. 04-002-08 for construction of the K-11 Transmission Line in Florence be awarded to the low bid of $655,072.55, from Hawkeye Construction.
Aye: Kaliher, Tymchuk, Matheny, Abbott.

Mr. Davies requested authorization from the Board for Invitation to Bid No. 04-003-08, for a manufacturer or manufacturers to build 110 padmount transformers to the District’s specifications. He explained that these transformers are to be used throughout the District.

Motion: Mrs. Matheny moved and Mr. Tymchuk seconded that the bids be authorized for Invitation No. 04-003-08.
Aye: Kaliher,Tymchuk, Matheny, Abbott.

Mr. Dawson reported that CoastCom Inc., an Oregon Corporation, is requesting a lease of (1) one fiber pair on the fiber system for (5) five years from the vault located just outside the Heceta Substation (241) located at Taylor Road, Florence Oregon to the Central Lincoln Florence Office located at 966 Highway 101, Florence Or. Mr. Dawson requested that the Board approve negotiations of a lease with CoastCom by finding that this is in accordance with Resolution 835, Article 4, 15(d). The following are reasons for this authorization:

1. A negotiated contract will not result in favoritism or reduced competition.

• Additional capacity is available for other companies to request a lease over this section during this.

2. Savings to the District can be obtained through this lease.

• Revenue will allow recovery of investment in the fiber pair over a period of approximately ten (10) years. The capacity is surplus to District needs.

Discussion was held and the following motion was made:

Motion: Mr. Kaliher moved and Mr. Tymchuk seconded that the lease to CoastCom Inc. be approved due to the facts stated above.
Aye: Kaliher, Tymchuk, Matheny, Abbott.

Mr. Davies updated the Board on the current financial condition of the District, including the budget and the Five Year Capital plan, in accordance with the Board’s Governance Policy, Page 4.

Vice President Abbott noted that the next item for discussion was the Board’s governance policy on Board/ GM Relations. The pages were briefly reviewed. Vice President Abbott requested that further discussions on this topic be postponed until Mr. Benfield could be present.

Discussion was held on the District’s current auditor, Kenneth Kuhns &Co, whose contract expired after the last audit in June of 2007. Mr. Barth reported that they were thorough, consistent and experienced, and recommended that the District continue working with them in the future.

After discussion, it was the consensus of the Board to remain with our current auditors Kenneth Kuhns and Company for the next three years, plus an additional two as stated in the contract. This will be re-assessed again after the next contract expires.

The following items are to be included on the agenda for the March 19^th Workshop and Regular Board Meeting scheduled to be held in Newport:

Workshop/Board Meeting (10:00 am) – Review Power Supply Options; General Board Discussion

Board Action –

Review and Assess: Review Governance Process, pg 10-18; Discussion on PPC

Strategic Issues: Energy Economics

Consent Agenda: Minutes, vouchers, petty cash, uncollectibles, and Directors cash report.

Personnel
Mr. Davies updated the Board on recent personnel changes throughout the District.

Grievance
Mr. Davies briefly reported on a recent Grievance filed within the District.

Legislative Session
Mr. Davies asked Mrs. DiTorrice to give the Board an update on the recent Legislative Session in Salem. She reported that metals theft, medical marijuana, and HB 3610 (emissions reporting) were the main topics of discussion.

Building Renovation
Mr. Davies outlined several options available for consideration concerning the future of the Newport office building, including renovation versus moving to a new location. It was determined that staff would put together separate RFP’s involving these different options for the Board to consider. A Special Board Meeting to analyze the results would be considered.

SOS Program
Discussion was held on feedback received from the Reedsport Chamber of Commerce concerning a suggestion that donation of a pre-determined amount be made by the city (or organization) to Central Lincoln’s SOS program in lieu of a fee. Mr. Tymchuck will ask the city for clarification.