Minutes of Regular Board Meeting September 23, 2015

Transcription

1 Minutes of Regular Board Meeting September 23, 2015 A regular meeting of the Board of Directors of the Central Lincoln People s Utility District was held at the Newport Office on Wednesday, September 23, 2015 at 10:00 a.m. President Kaliher called the meeting to order and asked that roll be called. Members present: Curt Abbott Larkin Kaliher Judy Matheny Tom Tymchuk Ron Benfield Others present: Debra Smith, General Manager Steve Alexanderson, Senior Systems Engineer Sunnetta Capovilla, Executive Assistant Brian Barth, Customer and Financial Services Manager Chris Chandler, Public Affairs Manager Doug Dawson, IT & Telecom Manager Shamus Gamache, Senior Systems Engineer Randy Grove, Operations Manager Brandon Hignite, Senior Planner Analyst Bruce Lovelin, Engineering Manager Gail Malcolm, Project Manager Sue Tyler, Human Resources Manager Steven Christmas, Summer Intern Staff and Visitors Recognized President Kaliher welcomed staff and visitors to the meeting. Intern Presentation Mr. Lovelin introduced Engineering employees Shamus Gamache and Steve Alexanderson who were present to introduce summer intern Steven Christmas. Mr. Christmas is studying electrical engineering at OSU, and will be finishing his bachelor s degree in the spring of 2016 and is presently enrolled in an accelerated master s program. He gave a PowerPoint presentation highlighting his various activities during his internship this summer including: Substation control building panel upgrades at Nye Beach, print-checking drawings for the new Kingwood Substation, testing a potential new cybersecurity device; and noted his interest in OSU s Pacific Marine Energy Center (PMEC) and the study of wave energy being conducted off of the coast of Newport. He expressed his appreciation to the Board and Central Lincoln for the opportunity to participate in the intern program, noting that he hopes to return one day when PMEC begins its integration into the CLPUD system. Consent Agenda The Board approved the following Consent Agenda items as presented: a) Minutes of August 19, 2015 Regular Board Meeting b) Vouchers for August, 2015 Board Minutes Page 1 of 6 September 23, 2015

2 c) Uncollectibles for August, 2015 d) Directors Cash Report as of August 31, 2015 Adopting New Rate Schedules Resolution No. 896 Staff recommended that Schedule 405 be changed to reflect updated BPA power and transmission charges; as well as changing Net Metering schedules to represent Central Lincoln s avoided cost of purchasing additional power. After discussion, the following motion was made: Motion: Mr. Abbott moved and Mrs. Matheny seconded to adopt Resolution No. 896 which updates Rate Schedules 405 and NM1, NM2, NM3 and NM4. Aye: Tymchuk, Abbott, Benfield, Matheny and Kaliher. Defining Retirement & Clarifying Other Post-Employment Benefits (OPEB) Resolution No. 897 Staff recommended approval of Resolution No. 897 which formalizes the definition of retiree as an employee who leaves Central Lincoln at age 55 or older with at least ten years of service. It further clarifies that all employees who were hired before July 1, 2010, and all current represented employees will be eligible for Central Lincoln PUD s medical and dental/optical plans at the same rate as provided to existing employees up to the date the retirees are eligible for Medicare. All employees hired on or after July 1, 2010 who are nonrepresented at the time of retirement are ineligible to participate in the Post-Employment Benefits program. After discussion, the following motion was made: Motion: Mr. Abbott moved and Mr. Benfield seconded the adoption of Resolution No. 897 defining retirement and clarifying employee eligibility for other post-employment benefits. Aye: Tymchuk, Abbott, Benfield, Matheny and Kaliher. Adopting Regulatory Accounting for Pension Expenses Resolution No. 898 In 2012 the Governmental Accounting and Standards Board (GASB) adopted Statement No. 68 Accounting and Financial Reporting for Pensions which was designed to improve accounting and financial reporting by state and local governments for pensions. The new standard goes into effect this year. What was previously a footnote to financial statements must now be recorded as a pension liability. One way to manage the impact of GASB-68 on Central Lincoln s balance sheet is to also adopt GASB-62. Doing so will allow us to post a regulatory asset to offset the pension liability. After discussion, the following motion was made: Motion: Mr. Abbott moved and Mrs. Matheny seconded to adopt Resolution No. 898 which approves adoption of Regulatory Accounting (GASB No. 62) for changes in the net pension liability, noting that this resolution is intended to clarify and support the appropriate accounting treatment of pension expense by the District. Aye: Tymchuk, Abbott, Benfield, Matheny and Kaliher. Board Minutes Page 2 of 6 September 23, 2015

3 Authorizing Purchase of Land & Approving the Purchase Price Resolution No. 899 In 2013, Central Lincoln contracted with Ken Beeson LLC, to evaluate District facilities and develop a long-term facilities plan for the District. A plan was presented by Mr. Beeson to the Board in April 2014 which included a recommendation that, due to the age of the South Beach Operations Facility and its location in a tsunami inundation zone, it should be replaced in the near term. In October 2014, seven potential sites were identified by the Newport Operations Center (NOC) Committee; and of those, three met the established criteria (minimum of ten acres of usable land, located north of the Yaquina Bay Bridge and outside the floodplain, close proximity to a major highway, ease of access for large vehicles, stability of the land, reasonable access to water and sewer services, and preferably zoned for commercial or industrial use.) Of the three, one site comprised of several properties with different ownerships was determined to be the best fit and was presented to the Board. At the Board s request, staff began a due diligence process which would provide additional information about the properties selected including a geotechnical investigation, environmental site assessment, lot reports, appraisals and an independent review. Upon completion of the due diligence process, finding there were no issues with the properties that would prevent Central Lincoln from moving forward, negotiations began with the various land owners to determine a final price. The following properties located within, or adjacent to, the Northgate Industrial Park were brought to the Board for purchase approval: Lots 1, 2, 3 and 4 owned by Avery Industrial Park LLC which include an 11,880 square foot building, paving and fencing with a price of $1,450,000. Lot 5, a vacant lot owned by Rick and Deborah Wright of Newport. Final price: $125,000. Lot 6, 7, 8, 9, 10 and 11 owned by Rocky Mountain Elk Foundation with a price of $550,000. A.23 acre residential lot owned by Patrick and Eudoklya Hazard; for $100,000. After discussion, the following motion was made: Motion: Mr. Abbott moved and Mr. Benfield seconded to adopt Resolution No. 899 which authorizes the General Manager to purchase the aforementioned parcels of land from their respective owners, accepts the corresponding purchase prices and gives authorization to the General Manager to execute all documents necessary for Central Lincoln PUD to purchase the land for a combined total of $2,225,000 plus closing costs estimated to be $51,000. Aye: Tymchuk, Abbott, Benfield, Matheny and Kaliher. Board Minutes Page 3 of 6 September 23, 2015

4 Contract Award: Single Elevator, Material Handling Bucket Truck As part of Central Lincoln s ongoing fleet maintenance program, staff recommended the purchase of a new single elevator, material-handling bucket truck to replace an existing 14- year-old bucket truck. The truck recommended is capable of routine line maintenance at normal working heights of 45 to 55 feet, or transmission line work at 60 to 70 feet. The budget amount for this piece of equipment is $340,000. Two proposals were received, but only one was able to meet Central Lincoln s specifications. Therefore staff recommended awarding the purchase of the elevator material bucket truck to Altec Industries for a purchase price of $323,545. After discussion, the following motion was made: Motion: Mrs. Matheny moved and Mr. Tymchuk seconded award the purchase of an elevator material bucket truck to Altec Industries for the purchase price of $323,545. Aye: Tymchuk, Abbott, Benfield, Matheny and Kaliher. October 14, 2015 Board Agenda Florence Office Board Meeting - 10:00 a.m. Governance Policies Pages 8 & 1 Contract Award: NISC (tentative) Conservation Quarterly House Bill 2599 Report Port of Toledo Update 30% Design for Newport Operations Facility Kingwood Substation Tour Consent Agenda - Minutes, Vouchers, Uncollectibles, and Directors Cash Report Manager s Report Pension and Deferred Compensation Update The Board reviewed a report prepared by Mr. Barth outlining the specifics of employees participating in the pension plan, and those participating in the 401(k) plan receiving matching funds; and the financial impact of these benefits to Central Lincoln s financial statement. The transition to Central Lincoln s new deferred compensation plan administrator, ICMA-RC has been completed. Two representatives from ICMA-RC were scheduled to do retirement education presentations at the employee training day September 24 th ; one presentation for those planning to retire in less than 15 years, and one for those who have longer-term retirement plans. Sole Source Discussion and Process The Board reviewed a draft document entitled Findings to Support Exemption from Competitive Bidding for a fully-integrated software solution offered by the National Information Solutions Cooperative (NISC). Discussion ensued about a small conflict in language between Resolution No. 862 and Governance Policy II.E regarding authority for sole sourcing. This language will be corrected and brought back to the Board for approval at a future date. Board Minutes Page 4 of 6 September 23, 2015

5 Customer Complaint Regarding the $2 Facility Charge Increase Mr. Barth relayed a complaint from a customer in Reedsport who is a disabled veteran who opposed the $2 Facilities Charge increase on his Central Lincoln bill. The Board discussed opportunities for increased communication about fixed and variable charges and their impact on customer rates. Appointment of Ms. Smith to the Governor s Offshore Wind Advisory Committee Ms. Smith reported that she has been appointed to the newly-created Governor s Offshore Wind Advisory Committee. The task force will be involved in a somewhat controversial issue, but an important one. Offshore wind generation is proposed for a site several miles off the coast of Coos Bay. Although initially offshore wind energy might not be cost-effective, it could be in the future, and balancing new resource development with other financial pressures is challenging. The committee has been tasked with providing a report to the Governor by the end of the calendar year. All Employee Training Day Central Lincoln will be closed September 24 th so employees can attend the annual allemployee training day. It will be held at the Florence Events Center. The Public Power Council s Executive Director Scott Corwin will be the guest speaker. The primary goal this year is helping employees understand more about Central Lincoln s financial and day-to-day operations so employees can become more engaged with Central Lincoln s mission, vision and values. Team-building exercises are also planned. The day will end with a tour of the new Kingwood Substation in Florence. Public Power Week/Month October is Public Power Month, and Public Power Week, specifically, is October In addition to inviting customers to enjoy coffee and cookies during Public Power Week, all month long there will be food drives and a customer contest to win an ipad mini, one at each customer-facing office. Central Lincoln s goal is the educate its customers about public power and what it does for them, reinforcing key messaging such as the conveniences provided through paperless billing, AutoPay, energy rebates etc. Employee Survey Results Ms. Smith shared with the board results from the employee engagement survey. A goal of Central Lincoln is to have highly engaged, proud, and committed employees. A link to our online survey was ed to all 121 employees in July from an outside vendor, and 108 employees (89%) responded. There were 55 questions in the survey. Ms. Smith delivered a detailed PowerPoint presentation. Two high-level takeaways, she reported, are that overall employee engagement is high, but employees felt communication between departments needs improvement. Ms. Smith told the Board she would be offering the same presentation the next day at the all-employee training day as well. A follow-up survey will be conducted in two years. Board Minutes Page 5 of 6 September 23, 2015

6 Directors Discussion Mr. Tymchuk requested that Central Lincoln send a letter under Mr. Kaliher s signature, to OPUDA nominating Curt Abbott to be President for OPUDA s 2016 fiscal year. Motion: Mrs. Matheny moved and Mr. Benfield seconded that Central Lincoln nominate Mr. Abbott to be OPUDA s President for Aye: Tymchuk, Abbott, Benfield, Matheny and Kaliher. Mr. Benfield noted that he had the opportunity to attend the most recent Public Power Council (PPC) meeting, and appreciated the outside perspective. He encouraged participation by the Board at PPC meetings in the future. There being no further business, the meeting adjourned at 12:55 p.m. Curt Abbott, Secretary Larkin Kaliher, President Board Minutes Page 6 of 6 September 23, 2015