Minutes of the Regular Meeting NRPPD Board of Directors, November 26, 2013, Unapproved

The regular meeting of directors of Northwest Rural Public Power District was held in the Conference Room of the District November 26, 2013 at 1:00 P.M.

The meeting was called to order by the president, Robert Rickenbach.  Directors who answered the roll call were Mike Van Buskirk, Wayne Cobb, Robert Rickenbach, Lee Ahrens, Bruce Troester, Gary Fuchser and Jim Johnson.

Also present were Rolland Skinner, manager; Arlene Lahaye, office manager; Russ Reichenberg, line superintendent; Ron Housh, planning engineer; Les Tlustos, consumer services, Terry Curtiss, District Counsel, and Robert Scrivner, Consultant.

The Open Meeting Law posting was acknowledged. 

All votes are unanimous upon a roll call vote unless noted.

A motion was made by Wayne Cobb, duly seconded by Mike Van Buskirk to accept the order of business as  published and supplemented at this meeting; motion carried.

A motion was made by Mike Van Buskirk, duly seconded Lee Ahrens, that the minutes of the meeting held October 31st be approved as published and mailed to all directors on November 19th; motion carried.

Robert Scrivner reviewed and discussed with the Board the adjusted income for the 12 months ending July 31, 2013. Mr. Scrivner then explained to the Board that Tri-State has realigned the demand component for the 2014 rate which will translate to a .91% rate increase. A discussion was also held on the rate increase needed for CFC Loan requirement. The Board was then shown what the DSC (Debt Service Coverage), TIER (Times Interest Earned Ratio) and the rate of return would be with the proposed rate increase. 

The proposed rate for each rate class was reviewed and discussed. A discussion was held on Tri-States future rate increases, if Tri-State will keep their current rate structure and what the impact on our industrial load and how it may affect other rate classes.

A motion was made by Bruce Troester, duly seconded by Wayne Cobb to approve the proposed 2014 rates; Robert Rickenbach, aye; Lee Ahrens, aye; Mike Van Buskirk, nay; Bruce Troester, aye; Jim Johnson, aye; Wayne Cobb, aye; Gary Fuchser, aye; motion carried. Further discussions were held on the reason for the design and allocation of cost on blocks.

Robert Scrivner left the meeting at 2:20 PM.

The office manager reviewed the October Financial reports, graphs on purchased and sold power, demand and cash flow were also reviewed.  A motion was made by Gary Fuchser, duly seconded by Wayne Cobb to accept the October financial reports; motion carried.

Ron Housh informed the Board that the Mirage Flats Irrigation District has contacted us about a proposed project to replace their canal system. Discussed what lines would have to be upgraded and the possible construction costs. 

Ron Housh and Rolland Skinner will meet with Mirage Flats personnel to discuss the plans further.

Russ Reichenberg reviewed the Safety Report for October.  A discussion was held on property damage and the vehicle accident that occurred. The incident involving non-NRPPD personnel was also discussed along with training that occurred during the month. A discussion was held on the high potential incidents the occurred. A motion was made by Bruce Troester, duly seconded by Gary Fuchser to accept the October Safety Report; motion carried.

Russ Reichenberg informed the Board the contract with Verizon for the Gordon tower was signed and mailed Novmeber 25th. The first five years Verizon will pay $21,400 per year and the next five years an additional $26,542.40. At the end of the ten years very five years a 10% adder will be added. 

Les Tlustos gave the Directors the enrollment forms for the 2014 National and Nebraska Acre enrollment.

Bruce Troester and Wayne Cobb reported on the Basin meeting. There was a discussion on Basin rate increases, but not to the extent of Tri-State.

Gary Fuchser said that he was unable to attend the Tri-State meeting, but he received a notice that all information needs to be kept confidential.

A discussion was held on the effective date of the 2014 rate increase. A motion was made by Gary Fuchser, duly seconded by Wayne Cobb to have the rate effective with the January 2014 billing; Robert Rickenbach, aye; Lee Ahrens, aye; Mike Van Buskirk, nay; Bruce Troester, aye; Jim Johnson, aye; Wayne Cobb, aye; Gary Fuchser, aye; motion carried.

At 3:52 PM a motion was made by Lee Ahrens, duly seconded by Mike Van Buskirk to go into an executive session to discuss manager replacement. Lee Ahrens, aye; Mike Van Buskirk, aye; Bruce Troester, aye; Wayne Cobb, aye; Robert Rickenbach, aye; Gary Fuchser, aye; Jim Johnson, aye; motion carried.  

Rolland Skinner, Arlene Lahaye, Les Tlustos, Russ Reichenberg and Ron Housh left the meeting.

At 4:00 PM a motion was made by Jim Johnson, duly seconded by Lee Ahrens to come out of executive session.  Lee Ahrens, aye; Mike Van Buskirk, aye; Bruce Troester, aye; Wayne Cobb, aye; Robert Rickenbach, aye; Gary Fuchser, aye; Jim Johnson, aye; motion carried.

Rolland Skinner rejoined the meeting and Wayne Cobb and Gary Fuchser left the meeting.

At 4:01 PM a motion was made by Jim Johnson, duly seconded by Lee Ahrens to go into an executive session to discuss NIPSIG issues. Lee Ahrens, aye; Mike Van Buskirk, aye; Bruce Troester, aye; Wayne Cobb, absent; Robert Rickenbach, aye; Gary Fuchser, absent; Jim Johnson, aye; motion carried.  

At 4:55 PM a motion was made by Bruce Troester, duly seconded by Jim Johnson to come out of executive session.  Lee Ahrens, aye; Mike Van Buskirk, aye; Bruce Troester, aye; Wayne Cobb, absent; Robert Rickenbach, aye; Gary Fuchser, absent; Jim Johnson, aye; motion carried.

There being no further business to come before the Board, the President declared the meeting adjourned at 4:56 P.M.. 

Approved: President

Signed: Secretary

Published: January 1, 2014