Visitors Recognized

President Benfield welcomed the District’s staff to the meeting. Mr. Boshaw introduced staff members from Central Lincoln’s Apprenticeship program; Chairman of the Joint Apprenticeship Training Committee, Brad Trommlitz, member Chan Christiansen, and Apprentice Linemen, Tyler Foster and Dan Kinion.

A discussion was held on the Central Lincoln’s Apprenticeship Program including the recent Lineman Rodeo held in Washington State and Camp Rilea.

The Linemen and Apprentice Linemen left the meeting at this time.

A discussion was held on the new Bonneville Power Administration Power Contract Timeline for customer power supply choices.

Scheduling of a Special Board meeting to discuss future power supply options in depth was discussed. After discussion the following motion was made.

Motion: Mr. Tymchuk moved and Mrs. Matheny seconded that a Special Board Meeting be held in Yachats Oregon on August 13, at the Yachats Commons at 9:00 a.m.to discuss future power supply options.
Aye: Matheny, Tymchuk, Kaliher, Abbott, Benfield.

Mr. Davies asked Mr. Boshaw to report on bid No. 04-005-08. Mr. Boshaw explained that the bid was requesting a contractor to furnish labor, equipment, and material to complete the office addition at the South Beach Operations complex. After review, it was staff’s recommendation to award the bid to S&J construction at the bid price of $304,000,00.

Discussion was held and the following motion was made.

Motion: Mr.Kaliher moved and Mr.Tymchuk seconded that bid No. 04-005-08 for a contractor to furnish labor, equipment and material to complete the office addition at the South Beach office be awarded to S&J Construction at a bid price of $304,000,00.
Aye: Matheny, Tymchuk, Abbott, Kaliher, Benfield.

Mr. Davies gave an update on the Newport office building renovation. He explained that it might be necessary to exceed a 10% value of the contract allowance for building change-orders. After discussion the following motion was made:

Motion: Mr. Kaliher moved and Mr. Abbott seconded that the amount designated for building change-orders for the Newport office building remodel be raised from 10% to 15% of the value of the contract.
Aye: Matheny, Tymchuk, Abbott, Kaliher, Benfield.

Mr. Davies asked Ms. Chandler to discuss a draft written to the Mayor of Newport and the members of the City Council in support of an effluent line licensing agreement that has been negotiated by City staff and Georgia Pacific representatives. A discussion on the Georgia Pacific effluent pipeline was then held.

It was the consensus of the Board that the draft be signed and mailed to Mayor Bain and the Newport City Council. Mr. Benfield and Mr. Davies will attend the upcoming Newport City Council meeting on July 24^th in support of this agreement.

Mr. Davies asked Mr. Dawson to discuss a request for Lease of Dark Fiber Surplus Capacity to LS Networks Inc. Mr. Dawson explained that LS Networks Inc. is requesting a lease of three fiber pairs on the fiber system for seven years from the Central Lincoln’s Florence Office to the Central Lincoln vault at V27h027 near the intersection of Oak Street and 13^th street in Florence. He explained that this is in accordance with Resolution 835, Article 4, 15(d). A negotiated contract will not result in favoritism or reduced competition and additional capacity is available for other companies to request a lease over this section during this time frame. He explained that savings to the district can be obtained and that revenue will allow recovery of investment in the fiber pair over a period of approximately ten years. The capacity is surplus to Central Lincoln needs. After discussion the following motion was made.

Motion: Mr. Kaliher moved and Mr. Abbott seconded to approve the lease for Dark Fiber Surplus capacity to LS Network Inc. which will not result in favoritism or reduced competition; additional capacity is available for other companies and will result in savings to the District and the revenue will allow recovery of investment in the fiber 3 fiber pairs over a period of ten years.
Aye: Matheny, Tymchuk, Abbott, Kaliher, Benfield.

Mr. Dawson explained that CoastCom is requesting a lease of two fiber pairs on the fiber system for seven years from the Central Lincoln Florence Office to the Central Lincoln vault at V27H027 near the intersection of Oak Street and 13^th Street in Florence. He explained that this is in accordance with Resolution 835, Article 4, 15(d). He explained that a negotiated contract will not result in favoritism or reduced competition, and that additional capacity is available for other companies to request a lease over this section. Savings to the District can be obtained through this lease and revenue will allow recovery of investment in the fiber pairs over a period of approximately ten years. After discussion the following motion was made.

Motion: Mr. Kaliher moved and Mr. Abbott seconded to approve the lease of Dark Fiber Surplus Capacity to CoastCom Inc. which will not result in favoritism or reduced competition, additional capacity is available for other companies and will result in savings to the District and the revenue will allow recovery of investments in the fiber pairs over a period of approximately ten years.
Aye: Matheny, Tymchuk, Abbott, Kaliher, Benfield

Board Meeting: (10:00 a.m.)

Board Action: Staff Treatment

Strategic Issues: AMI Update, Conservation Update, Financial Condition

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

The Customer Forum scheduled for the August meeting was moved to the November 19^th Board Meeting in Reedsport by consensus of the Board.

Memo to the Board
Mr. Davies informed the Board that material management was sending out a formal bid for the purchase of eight 15.5 kv substation circuit breakers. The breakers will be used in substations’ SS137, 107, 106, and one spare. The estimate for the total purchase of the eight breakers is $144.000.00. The advertised bid opening is 2:00 p.m. Wednesday, August 6, 2008, and the Board will award the bid at the August 20^th Board Meeting.

Residential Exchange Issue
Mr. Davies gave the Board an update on the WP-O7 Supplemental rate case (Residential Exchange).

Public Power Council
Mr. Davies reviewed a recent meeting he attended at the PPC in Portland on July 10^th.

Legislative Oversight Committee
Mr. Davies asked Ms. Chandler to give an update on recent OPUDA legislative and lobbying issues. She discussed a PUC matter regarding direct access, a purposed county "Utility Maintenance Fee", ODOT tree removal, the work of The Romaine Group for OPUDA, and a metal theft legislative update.

Employee Forum
A discussion was held on the Employee Forum held in Yachats at the June 18^th Board Meeting.

American Public Power Association
Mr. Abbott reviewed the APPA National Meeting in New Orleans on June 21 - 25^th. Energy Efficiency was a major topic of many workshops and Conservation/ Renewables was the theme of the conference.

Audit Agreement
An annual audit agreement with Kenneth Kuhn’s was briefly discussed and will be presented in its entirety to the Board at the August 20^th Meeting.

Oregon Peoples Utility District Association
A brief discussion on the upcoming OPUDA meeting on July 18^th was held.

Northwest Public Power Association
Some future NWPPA power supply workshops were discussed.

Bonneville Power Administration/Slice Presentation
A presentation on the Slice/Block product was given by Mr. Timothy Roberts the Slice Product Manager, Theresa Rockwood, Account Executive, and Young Linn, a Transmission Account Executive from Bonneville Power Administration. It was attended by Mr. Phillip Zirngibl, Mr. Mark Ferguson, and Mr. Terry Shepard from the Georgia Pacific Corporation. The presentation and discussion was a general description of slice product and operating characteristics, for Central Lincoln as a prospective Slice/Block customer.

There being no further business, the regular meeting adjourned at 3:40 p.m.

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