PEC Board receives year-end report from GM, honors employees

The Board also heard a report from the Governance, Bylaws and Legal Committee about a revised time line for changes to the Cooperative’s bylaws and the possible implementation of a member bill of rights

Note: The press release has been edited for length

FOR IMMEDIATE RELEASE
December 15, 2009
TO: All PEC-area newspapers
MEDIA CONTACT: Anne Harvey, (830) 868-4933; Austin line, (512) 219-2602

Pedernales Electric’s Board of Directors held its regular monthly meeting Dec. 14 at PEC headquarters, where it received an extensive year-end summary from Cooperative General Manager Juan Garza, honored 23 long-time employees and completed other business measures.

Garza’s year-end report began with statistics regarding the Cooperative’s efforts to address recommendations made in a 391-page report submitted to the Board in December 2008 by Navigant Consulting, Inc.

Last year Navigant conducted an independent, eight-month-long investigation of PEC business practices, covering the 10-year period from Jan. 1, 1998 to Dec. 31, 2007. Garza reported that to date, PEC management has addressed 94 percent (128 of 137) of Navigant’s recommendations and has actually implemented 63 percent. Garza said Cooperative management plans to address the other recommendations in 2010, while also working to implement the other 31 percent already addressed.

Other 2009 PEC accomplishments outlined by Garza include:

- The implementation of a new rates structure and line extension policy after completion of an extensive, independent cost of service study.
- Submission of an operating budget and a capital improvement plan for 2010. The budget represents a first for PEC.
- Implementation of a more stringent travel and business expense reimbursement policy.
The establishment of open records, open meetings, conflict of interest and whistleblower policies.
- The dissolution of Texland Electric Cooperative, leading to PEC recovering more than $565,000 from the defunct venture.
- Elimination of unnecessary consulting contracts, saving the Cooperative about $1 million annually.
- Merging the operations of Envision Utility Software into PEC.
- Conducting servant leadership training for all PEC employees.

After Garza’s report, the Board passed a resolution honoring current PEC employees who have been with the Cooperative since it separated from the Lower Colorado River Authority at the end of 1978. Management’s research led to 23 employees remaining from that time, leading to the resolution in recognition of the employees.

During the member comment portions of the meeting, members remarked on several issues, including capital credits, single-member voting districts, the Cooperative’s employee performance bonus system, the role of Board committees, and the Board’s recent decision to distribute members’ names, addresses and voting district information upon request to Board candidates.

One member repeated a call for the Board to address speculation regarding the relocation of PEC’s headquarters, which District 5 Director R.B. Felps later addressed by presenting a resolution for Board consideration stating the Board “has no plans to relocate the Cooperative’s headquarters,” which the Board unanimously approved.

The Board also heard a report from the Governance, Bylaws and Legal Committee about a revised time line for changes to the Cooperative’s bylaws and the possible implementation of a member bill of rights. The committee reported that information regarding the changes will be posted soon to the PEC web site, and the committee will hold a public bylaws forum Jan. 13, 2010, at PEC headquarters.

In other action at Monday’s meeting, the Board:

- Ratified an advisory panel of six members approved by the Board’s Energy Conservation and Renewable Generation Programs Committee. The panel will report ideas and suggestions to the committee.
- Approved a resolution authorizing Garza to negotiate, execute and deliver agreements for software products, and consulting, training and maintenance services related to the Cooperative’s LINKS project.
- Amended the Cooperative’s privacy and open records policies to account for the new member list distribution policy. The Board also modified the distribution policy to allow for electronic distribution of information.
- Received a report given by Leadership and Employee Development Manager Steve Lucas on the Cooperative’s improved safety performance, reflected by reduced lost-time, personal injury and vehicle accidents as of the end of November when compared to performance in 2008.
- Approved performance bonuses for employees based on PEC’s Board-developed evaluation system.
- Approved an amendment to the Cooperative’s contract with Bridgepoint Consulting that will save PEC about $16,500 based on changes to the scope of services the firm will provide. Bridgepoint primarily provides internal auditing services to PEC, but the amended contract will provide for assistance from the firm to evaluate PEC’s proposed operating budget, as well as the Cooperative’s payment card industry compliance, while suspending work on an inventory audit.
- Voted to retain the services of Monica Schmidt, a consultant with the National Rural Electric Cooperative Association, to assist the Board with governance issues and help ensure PEC’s practices are consistent with other cooperatives. Schmidt will attend the Jan. 13 bylaws forum.
- Approved moving the regular February Board meeting from Feb. 15 to Feb. 22 to avoid a scheduling conflict.

The next regular Board meeting will be held at 10 a.m. on Jan. 19 at PEC’s E. Babe Smith Headquarters Building in Johnson City.