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Minutes of Board of Trustees Meeting - Regular meeting April 25, 2016

Trustees present were: Frank Czyzewski, Bill Croy, Neil Gould, Frank Herman, Kevin Logan, Bob Pierson, Richard Rudolphi, Danny Schnepper and Greg Smith. Also present were Executive Vice President/General Manager Ed VanHoose, Cooperative Attorney Melanie Pearce, Gary Hobson and Staff of Cooperative Building Solutions, and Earl Ridlen of London Witte Group, LLC. The invocation was given by Greg Smith. 

    Approved the agenda as presented and amended by Gen. Mgr. VanHoose.

    Heard a presentation by guests Gary Hobson and Staff as to planning, design, and construction of Rural Electric Cooperative Facilities. Thereafter they left the meeting.

    Heard a report from Earl Ridlen as to the 2015 audit report. Reviewed and Discussed the audit and capital credit disbursement. Thereafter Mr. Ridlen left the meeting.

    Approved the audit as presented.

    Approved the minutes of the regular meeting held March 28, 2016.

    Accepted 7 new members for service. 

    Canceled 14 members no longer receiving service.

    Reviewed and Approved work orders in the amount of $104,644.71 for the month of March 2016.

Accepted the disbursement list for March, 2016.

    Informed by Gen. Mgr. VanHoose that Director Richard Rudolphi had earned a Director Gold Certificate for his commitment in pursuing NRECA Director education credits.

    Reviewed NRECA Memo regarding efforts to encourage certain legislation including the extension of the Geothermal Tax Credit.

    Reviewed NRECA document summarizing NRECA’s vision as to the industry’s future involving new and growing technologies that was submitted to the Solar Electric Power Association.

    Informed by Gen. Mgr. VanHoose 2015-16 Directors Study is available for review.

    Heard a report by Trustee Herman concerning the recent SIPC Board meeting specifically financial information, and margin shortfall and necessity of imposing a rate adjustment. Informed that rate adjustments require a 90 day notice but that a waiver of the 90 day requirement would be beneficial to CECI.  Approved waiving the 90 day Notice Requirement and Executed “Resolution Waiving Notice Requirements for Adjusting Wholesale Power Rates for Power Purchased From SIPC,” said waiver for this instance only and not a waiver generally. Also Heard a report as to SIPC Fidelity loss recognition as to cost of fuel.

    Heard a report by Gen. Mgr. VanHoose as to necessity of increase in CECI rates due to increase in SIPC rate. Discussed various methods of increase, Approved rate increase to be imposed in a hybrid application.

    Informed that there was not an AIEC Meeting this month. Heard a report by Gen. Mgr. VanHoose as to Youth Day participation by CECI sponsored students.

    Heard a report by Gen. Mgr. VanHoose as to the following;

a. Reviewed Form 7/Operations Report.

b. Reviewed March cash flow report.

c. Reviewed SIPC March power bill.

d. Reviewed March power factor.

e. Reviewed March power cost adder.

f. Informed that US Bank March Credit Card statement was not available for review.

    Approved entering into Executive Session for the purpose of discussing personnel.

    Approved entering into Open Session.

    Heard Managers report by Gen. Mgr. VanHoose as follows:

    Heard a safety report and Reviewed attendance record for the CECI Training and Safety Meeting held April 11, 2016 addressing Dealing with Road Rage and Irate Members.

Informed a CFC check had been received for Semiannual interest earned by CECI on investments in CFC.

    Heard a report as to status of Cooperative owned chipper requiring repair or replacement. Approved the repair of said chipper.

    Informed by Gen. Mgr. VanHoose that there are openings on the Cooperative Response Center, Inc. Board of Directors. Determined no interest in seeking the position.

    Informed by Gen. Mgr. VanHoose that the State of Illinois is behind on payment of their electric bills with CECI in the amount of $2,554.90 as of April 20, 2016. CECI Board resists terminating service at this time.

    Reviewed Official Meeting Notice for the 72nd Annual Meeting of the Members of Clay Electric Cooperative to be held on August 25, 2016, at the Oil Belt Christian Service Camp in Charley Brown Park. Districts up for election are I, II, and IX.

    Reviewed Thank You card from Samuel Larch, Youth Day Participant.

    Approved one Purchase Power Agreement in the form as presented.

    Approved the retirement of Capital Credits to the estates of 2 Deceased Members pursuant to Cooperative Policy.

    Disbursed CFC “Commitment to Excellence: A Guide to Developing Board Policies for Financial Best Practices” handbook. 

    Adjournment.