Redwood Electric Cooperative

“The organization has members.”

“Members vote on By-laws and also nominate and elect the Board of Directors. Each member that has a $5.00 membership with the cooperative will receive one vote. When a director's term is up the members will nominate and vote on a director to fill the position; the director may be reelected if the membership chooses.”

“By-laws are approved by the membership at the Annual meeting.”

“There are no committees with authority to act on behalf of the governing body.”

“The General Manager and support staff review the 990 and provide copies to the Board of Directors to review at the board meeting. The 990 is filed with the IRS after all Board members have received a copy and been given ample time to review it.”

“The Board of Directors and employees are covered by the conflict of interest policy and are required to disclose conflicts annually. The Board of Directors will determine if a conflict exists. If a conflict exists, the Board president and general manager will review the conflict. The policy states that if a conflict exists, the director or employee that is involved has 30 days to comply with the policy before they are considered for removal from the Board or the Cooperative.”

“Services of the general manager are shared by South Central Electric Association and Redwood Electric Cooperative. The SAC committee is responsible for determining the general manager's salary and is comprised of three South Central Electric Association board members and three Redwood Electric Cooperative board members. The committee determines the compensation for the general manager through utilization of comparability data, salary survey data, and annual reviews. The Board of Directors use comparability data to determine compensation for board members. This process was undertaken in 2014.”

“Articles of Incorporation and Bylaws are distributed to new members with their member handbook. The Balance Sheet and Statement of Operations are mailed along with their bill in March. These are also distributed to members as a handout at our annual meeting or they may be reviewed at our office if the member requests.”

“Included in other compensation is the estimated current year increase or decrease in the actuarial value of the defined benefit plan for the general manager. The current year increase or decrease does not represent current year contributions to the plan. Rather, it is an estimate of the increase or decrease in the actuarial value of the plan as calculated by the plan administrator.”

“Ron Horman, current general manager, is paid by Redwood Electric Cooperative. Ron's wages are billed to SCEA as an outside service. The amount reported in Part VII represents Redwood Electric Cooperative's share of the wages and benefits.”

“Allocation of 2014 margins to members in 2015 859,916. Patronage capital retirement -481,998. Change in memberships -20. Gain on early retirements 27,200.”

“The Cooperative has interpreted the instructions to Part IX, Line 4, to mean patronage capital allocated for the year, rather than patronage capital retired. This is consistent with the By-laws of the Cooperative.”

“Allocated and Other Expense - The labor, pension and payroll taxes reported on lines 6-10 are included in distribution expense, administrative & general expense and customer expense. Therefore, labor, pension and payroll taxes are shown as a reduction to other expenses on line 24e.”