Monthly Board Meeting Summary
Clay-Union Electric Corporation
Regular Board Meeting - Vermillion, South Dakota
March 2010
On April 26, 2010, at 8:30 A.M., the Board of Directors of Clay-Union Electric was called to order by Board President James Ryken. The following directors were also present: Tom Larsen, Michael Slattery, Terry Munter and Gordon Andersen.
Also in attendance were General Manager John Gors, Business Manager Beth Bottolfson, Operations Manager Leo Powell and Member Service / Marketing Director Mike Kjose.
Agenda – After an addition, a motion was made, seconded and carried to approve the agenda.
Minutes – Motion was made, seconded and carried to approve the Regular Board Meeting Minutes from March 19, 2010.
Check List & Electronic Funds Transfer – The checklist, EFT and ACH payments were reviewed. Discussion followed.
New Members and Refunds – A motion was made, seconded and carried to approve the new members and refunds for the month.
Manager’s Report – Manager Gors provided an update and/or reported on the following items:
• Audit - Onsite portion of our annual audit was preformed and no major issues with the audit or adjustments were needed.
• Water Heater Warranty - Warranties are between member and State Water Heaters. Clay-Union doesn’t control how warranties are handled by water heater companies.
• Member Contacts - A member that is involved in the 5/7 program made contact with a director to comment on the control times and lengths of control times.
• Large Power 5/7 Voluntary Interruptible Rate (Policy #811)- Basin Electric had been questioning the 5-7 program. A question of how many members of Clay-Union Electric use the program. It was agreed that Staff would further review and analyze the program and bring it back to the board for further discussion next month.
• Single Phase Irrigation - Clay-Union was contacted by a possible new member that would like to install single phase irrigation. Question, how will this equipment affect Clay-Union’s system, and will members on that line see any power fluctuations. It was decided the staff will review the policies involved and make a recommendation to the board.
• Rate Comparison - Reviewed southeastern South Dakota rate comparison of the East River cooperatives. Out of the nine cooperatives, Clay Union Electric Cooperative was found to be very comparable and in some rate blocks lower.
• Director Districts - Reviewed the number of members in each district and at this time we believe that there is no need to do any reorganization of districts. We will continue to watch the size of each district and will report to the board if any changes are needed.
• AMI - Operations Manager Powell provided a short review of how the process is going. Still waiting for 3 phase metering equipment.
• New Manager Seminar - Gors reported that this was a very good experience. They met with staff of CFC, NRTC and NRECA. NRECA Manager, Glenn English addressed the group. Everything was very well organized and good discussion came from the attending managers.
• Benefits Update - A NRECA representative came to Clay-Union and met with Bottolfson and Gors regarding the benefit changes and discussions taking place between NRECA and the SD cooperatives.
• Cooperative Hall of Fame - An application was completed in 2008 for a candidate. That application was good for two years and now needs to be re-submitted in order to receive continuing consideration. A resolution was presented to the Board. A motion was made, seconded and carried to sign the resolution supporting the nominee to the Hall of Fame.
• Policy Update (action item) - Policy 303 - Basic change was going from a 17 ½ year. to a 10 year recovery period. Policy 304 - The big change here is that on an upgrade Clay-Union will provide a 200 amp service, over that the member will have to be involved in paying cost. Policy 316 - Not much was changed in this policy, just cleaned up. A motion was
made, seconded and carried to approve changes to the following policies: Policy 303, Policy 304 and Policy 316.
• Contracts/Service Agreements (action item) - A motion was made, seconded and carried to approve contract for services and authorized president Ryken to sign. A motion was made, seconded and carried to approve two (2) service agreements with members.
Departmental – Business Manager Beth Bottolfson provided the Administrative Department report that included:
• New members, Deposits and Consumer Activity/Statistics - 21 new memberships, 207 delinquent notices, 345 correction notices, 39 reconnects, 44 disconnects.
• Provided Financial Reports and reviewed additions made to RUS cushion of credit.
• Municipal, Gross Revenue and Property Taxes - State law requires Clay-Union to pay a 4% municipal tax to the City of Vermillion for electric energy sold to members who live in the city limits. $20,618.28 were paid in tax to the City of Vermillion for 2009 sales.
Operations Manager Leo Powell provided the operations department report that included; Cable has been pulled in by Lewis and Clark contractor. Materials are here to start terminations as soon as it dries up a little. Vermillion Sub was the first to go AMI and it went well. The first reading got all but 105 of 595 meters, or about 85%, which is very good.
Kjose provided the Member Services and Marketing report that included; MSM activity. W/H, H/P and Appliance rebates. Andrea McManus was selected as Clay-Union Electric’s representative on the D.C. youth tour in June.
Financials – Business Manager Bottolfson reviewed the following monthly financials; March 2010 Wholesale Power Bill. Also the Large Power Accounts, Small Commercial and Large Residential User Reports were reviewed.
Safety Meeting Minutes – (none)
Early Retirement of Capital Credits to Estates – (none)
Videos Viewed and Meeting Reports – The video reports were viewed by the board. Jim Ryken gave a brief update of East River and Basin Electric activities. That Gray Rock reservoir is 51 % full. Dry Forks is nearing its generation start up and additional tax paid to Basin for wind farm.
Adjournment – At 3:13 P.M. a motion was made, seconded and carried to adjourn the monthly board meeting.