Minutes of the Regular Meeting NRPPD Board of Directors, December 18, 2014, Unapproved

The regular meeting of Directors of Northwest Rural Public Power District (NRPPD) was held in the Conference Room of the District December 18, 2014 at 1:00 PM.

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

Also present were Chance Briscoe, manager; Arlene Lahaye, office manager; Russ Reichenberg, line superintendent; Ron Housh, planning engineer; Les Tlustos, consumer services; Terry Curtiss, District Counsel; and Tony Hindman.

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 excuse Gary Fuchser and Jim Johnson’s absence; motion carried.

A motion was made by Mike Van Buskirk, duly seconded by Lee Ahrens to amend the order of business; motion carried.

A motion was made by Bruce Troester, duly seconded Wayne Cobb, that the minutes of the meeting held November 25th be approved as published and mailed to all directors on December 12th; motion carried.

Arlene Lahaye reviewed the November income statement. Revenue for October was $75,430 over budget and NRPPD’s cost of power was also over what was budgeted by $34,556. Total net margins were $31,625 for November.

Chance Briscoe reviewed the Cash Flow from operating, investment and financing activities for the month of November. For the month of November there was a -$47,319 cash from all activities. A discussion followed with a motion being made by Bruce Troester, duly seconded by Mike Van Buskirk to accept the November financial reports; motion carried.

Chance reviewed the proposed 2015 Budget. The Board was shown the 2014 Pro Forma Operating Statement along with the proposed 2015 Budget. The proposed 2015 Budget reflects a $1.48 million revenue reduction in the residential and irrigation classes. The cost of power for 2015 shows an increase in cost based on a five year historical average. The 2015 proposed budget still reflects a strong TIER of 3.36 and Modified Debt Service Coverage of 2.39. A motion was made by Mike Van Buskirk to postpone the final Budget approval until the January meeting, Wayne Cobb seconded the motion. Further discussions were held; motion carried.  

Russ Reichenberg reviewed the November safety report.  Russ discussed the training that occurred.

Russ informed the Board that all of the linemen have been provided Fall Arrest Devices and the 4 D-ring Body Belts that are compliant with OSHA Standards that will be effective April 2015. A motion was made by Mike Van Buskirk, duly seconded by Lee Ahrens to accept the November safety report; motion carried.

Russ reported on the construction costs through November. The normal construction costs through November are $931,000, and this is based on a $1 million construction budget.

Chance reported on the TWACS meeting that he and others attended at Cedar Know PPD in Hartington.

Chance reported on the NREA Meting he, Gary Fuchser, and Les Tlustos attended. Chance formally took his position on the Policy and Resolutions Committee. 

Chance also attended the Midwest Consumers Meeting in Denver. Some of the topics discussed were updates on WAPA and APPA. A political overview of results from November and impacts to 2015. A roundtable of CEO’s from Missouri River Energy, Basin Electric, Tri-State G & T, and Scott Schons from the FBI discussing cyber security issues in the electric industry.  

Chance discussed the Tri-State Contract Committee. The committee is still discussing the exit methodology and the 5% self-generation rule. At the last meeting the committee got a little deeper into the buyout methodology discussions. 

Chance also reported on the Tri-State Rate Committee meeting. The Rate Committee discussed the current Patronage Capital Requirements, the allocations and the retirements. The Rate Committee reviewed COSS models. The models are showing the costs to be more energy based rate than demand based.

Chance informed the Board that the NRECA Executive Search will be emailing an Evaluation of Manager form to all the Directors. The Board will need to complete their evaluation of Chance’s performance as manager of NRPPD.

Chance informed the Board that he had received a request from NRECA for a donation to NRECA International Fund. A discussion followed with the consensus of the Board feeling that it was a worthy cause, but decided that NRPPD would not make a donation at this time.

Les Tlustos reported to the Board that NRPPD was recognized for participating in both the NREA Youth Camp and Youth Tour. NRPPD is also a 100% management participant of ARCE.

The January meeting will be held Tuesday January 20th.

Terry Curtiss informed the Board that the NADC issue is moving forward.

A motion was made by Wayne Cobb to go into an executive session at 3:27 PM to discuss staff wages, the motion was seconded by Bruce Troester; motion carried. Russ Reichenberg, Ron Housh, Les Tlustos and Arlene Lahaye left the meeting. At approximately 4:10 Chance Briscoe left the meeting.

A motion was made by Mike Van Buskirk, duly seconded by Bruce Troester to come out of executive session at 4:22 PM; motion carried. Chance Briscoe returned to the meeting.

A motion was made by Mike Van Buskirk, duly seconded by Bruce Troester to approve staff wages as presented; motion carried.

There being no further business to come before the Board, the president declared the meeting adjourned at 4:25 PM. 

Approved: President

Signed: Secretary

Published: January 7, 2015