Minutes of Regular Meeting of Directors NRPPD, May 25, 2017 Unapproved

The regular meeting of Directors of Northwest Rural Public Power District (NRPPD) was held in the Conference Room of the District May 25, 2017 at 1:00 PM.

The meeting was called to order by the president, Wayne Cobb.  Directors who answered the roll call were Bruce Troester, Lee Ahrens, Wayne Cobb, Terry Terrell, Robert Rickenbach, Gary Fuchser, and Marcus Sandberg.

Also present were Chance Briscoe, manager; Arlene Lahaye, office manager; Ron Olson, operations manager; Les Tlustos, member services; Terry Curtiss, District Counsel; Kelsey DeField, employee; Garrett Weyers, Drew Letcher, and Danielle Johnson Scholarship recipients.

The Open Meeting Law posting was acknowledged. 

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

A motion was made by Robert Rickenbach, duly seconded by Lee Ahrens accept the order of business as published and supplemented at this meeting; motion carried.

A motion was made by Lee Ahrens, duly seconded by Gary Fuchser, that the minutes of the meeting held April 27, 2017 be approved as corrected; motion carried.

The Board reviewed the Check Register and Payroll Summary for the month of April.

Les explained the scholarship program that is administered by NRPPD.  Tri-State G & T provides the funds for two $500 scholarships and Basin Electric provides the funds for one $1,000 scholarship.  The recipients’ family must receive their power from NRPPD and all applications are reviewed by a selection committee.

The 2017 scholarships were presented by Wayne Cobb and Les Tlustos. Danielle Johnson received the $1,000 Basin Electric Scholarship, Garrett Weyers and Drew Letcher each received a $500 Scholarship from Tri-State G & T. Each student addressed the Board concerning their future plans and where they will be attending college.

Danielle Johnson, Garrett Weyers, and Drew Letcher left the meeting.

Chance addressed the Financial Goals Policy ratios. No action taken.

The NRUCFC Integrity Funds was discussed. A motion was made by Robert Rickenbach, seconded by Terry Terrell to contribute 5% of NRPPD’s Capital Credit refund with a cap of $750 to NRUCFC’s Integrity Fund; motion carried.

Chance recommended that NRPPD discontinue the solar project with Innovative Solar LLC. A discussion followed with a motion being made by Robert Rickenbach, seconded by Gary Fuchser to suspend the solar project; motion carried.

Arlene reviewed the April financial reports, and Chance reviewed the load charts for April.  A motion was made by Bruce Troester, seconded by Terry Terrell to accept the April financial reports; motion carried.

Ron reviewed the Safety Statistics for April.  The Safety Report was discussed and no incidents were report for the month. Training for the month was reviewed. The preliminary Agenda for the June Safety Meeting was reviewed. A motion was made by Gary Fuchser, duly seconded by Lee Ahrens to accept the April Safety Report; motion carried.

Ron informed the Board that he met with Federated Insurance and reviewed NRPPD’s claims for the past three years. Federated commented on the small volume of claims that have been submitted, as well as the amount on the claims paid.

Ron reviewed the April Outage Report. The largest outage in April was at the Scott Substation and a lightning arrestor was the cause of the outage.

Chance addressed the Board concerning a letter received from a customer dealing with the State of Nebraska’s required Sales Tax Exempt forms. 

Chance reported on the Tri-State Board Meeting and the Contract Committee Meeting he attended. Tri-State is forecasting an annual average increase of less than 1% per year for years 2018 through 2021. The Contract Committee reviewed polling results from the previous meeting. The survey found five major areas putting pressure on the contract; changing market conditions, diverging member growth, differing state pressures, new technology opportunities, and progressive community and industrial loads that desire to have renewables.

NRPPD’s 2016 irrigation hours controlled were discussed and compared with a neighboring system. While the programs have differences they had approximately the same number of controlled days.

Chance discussed the CFC Loan Funds advancement and will probably advance the funds in June since it looks like the Federal Reserve will raise the interest rate again in June. A further discussion was held on the possibility in the future of splitting advances between a fixed rate and a variable rate. 

Chance reviewed several financial forecasts utilizing differing levels of long term debt financing with the Board followed by an in depth discussion on the options presented.

Gary Fuchser reported on the Tri-State Meeting he attended. Gary informed the Board the vice president of the Tri-State Board lost his seat at his local system so the Tri-State Board will have to elect a new vice president at a future meeting. Also at the meeting discussions were held on the proposed Tri-State Standby Rate.

Terry Terrell reported on the NREA Board Meeting. NREA has increased their assets by $430,000, and NREA also reported that they have received approximately $300,000 from their Insurance Carrier on the fraud issue.   

Chance also reported on the NREA Board Meeting. The board did pass the new contract proposed, which will add another JT&S coordinator. The instructor will be based in western Nebraska. 

Item for the June Agenda will be the Financial Goals Policy.

A motion was made by Bruce Troester, seconded by Gary Fuchser to go into an executive session at 3:15 PM to discuss a NREA personnel matter; motion carried.

Kelsey DeField, Ron Olson, Les Tlustos, and Arlene Lahaye left the meeting at 3:15 PM.

A motion was made at 3:41 PM by Gary Fuchser, seconded by Marcus Sandberg to come out of executive session 3:41 PM; motion carried.

There being no further business to come before the Board, the president declared the meeting adjourned at 3:42 PM.

Approved: President

Signed: Secretary 

Published: June 14, 2017