CHIMNEY ROCK PUBLIC POWER DISTRICT

REGULAR MEETING OF THE BOARD OF DIRECTORS

March 13, 2017

The regular meeting of the Board of Directors of the Chimney Rock Public Power District was held in the office of the District in Bayard, Nebraska on March 13, 2017 at 9:00 A.M. Notice of the meeting was published in the Bayard Transcript, Bridgeport NewsBlade and the Star-Herald, newspapers of general circulation. An agenda of items to be discussed was available to the public and kept continuously current in the office of the District. Each Director was furnished with an agenda prior to the meeting.

The meeting was called to order at 8:56 a.m.

Kevin Stuart, President, presided at the meeting and Richard Kildow, Secretary/Treasurer, kept the minutes of the meeting.

President Kevin Stuart advised that the Open Meetings Act was posted for those who want to read it.

Upon Roll Call the following members were reported present:

Larry FiscusRichard KildowTravis Petersen

Stan ProppCorey HenkelKevin Stuart

The above named persons being all members of the Chimney Rock Public Power District Board of Directors.

Also present were Manager Diana Reich, Operations Superintendent Alvin Harimon, and Attorney Terry Curtiss.

Justin McAllister, Journeyman Lineman, attended the meeting.

A motion was made by Director Stan Propp and seconded by Director Travis Petersen to approve the agenda. Directors voting “Yes” were: Richard Kildow, Larry Fiscus, Stan Propp, Kevin Stuart, Travis Petersen, and Corey Henkel. Directors voting “No” were: None. Directors abstaining: None. Directors absent: None. Motion carried 6 – 0.

A motion was made by Director Travis Petersen and seconded by Director Corey Henkel to accept the minutes of the Chimney Rock Public Power District Regular Board Meeting dated February 13, 2017. Directors voting “Yes” were: Richard Kildow, Larry Fiscus, Travis Petersen, Stan Propp, Corey Henkel, and Kevin Stuart. Directors voting “No” were: None. Directors abstaining: None. Directors absent: None. Motion carried 6 – 0.

A motion was made by Director Richard Kildow and seconded by Director Stan Propp to accept the bills for February 2017. Directors voting “Yes” were: Richard Kildow, Larry Fiscus, Travis Petersen, Stan Propp, Corey Henkel, and Kevin Stuart. Directors voting “No” were: None. Directors abstaining: None. Directors absent: None. Motion carried 6 – 0.

Operations Superintendent Alvin Harimon presented the Operations Report to the board. He went over construction, retirement and maintenance items completed during the past month. There were two new services, five replacements, one system improvements, and three retirements. We had no outages. The crew did substation inspections and readings, energy efficiency rebates, trimmed trees, PCB tested transformers, line inspections, replaced two fans and breakers at the Lynn Substation, and counted year-end inventory. They also moved a lot of snow with the snow that was received in January. We currently have a possibility of six new irrigation services; two of which are complete.

General Manager Diana Reich presented the Manager’s Report to the Board. The financials presented are preliminary. Some of the items covered were:

a) In January, we purchased 4,436,716 Kwh from Tri-State. Our Cost of Power, including wheeling charges for the Brown’s Creek Sub, was $351,431 and averaged 79.21 mills.

b) January 2017 Kwh sales were 4,544,199; we purchased 4,436,716 Kwh from Tri-State for a negative line loss of 2.42 percent.

c) Operating Revenue for January 2017 was $687,837. Budgeted was $682,545; a difference of $5,292.

d) Expenses less cost of power for January were $118,351. Budgeted was $156,057; a difference of $37,706.

e) Operating Margins for January were $158,482. Budgeted was $172,894; a difference of $14,412.

f) Cash and investments for January were $2,550,321. According to the Cash Flow, cash was down $109,672 for the month of January.

g) Transportation costs for January were $12,827; total miles 5,421. Cost per mile was $2.37; without depreciation and insurance $1.27.

A motion was made by Director Larry Fiscus and seconded by Director Corey Henkel to accept the policies as follows:

B-23By-Laws and Articles of Incorporation – no change

C-22Account Disconnect – no change

E-22Sexual Harassment – no change

E-30Employee Recognition – change the wording of the last paragraph of the policy to read “Employees will be eligible after having been employed with Chimney Rock PPD for a period of at least two years. Those employees who are eligible to attend will be chosen based on seniority.”

O-4Tools – no change

Directors voting “Yes” were: Travis Petersen, Corey Henkel, Stan Propp, Richard Kildow, Larry Fiscus, and Kevin Stuart. Directors voting “No” were: None. Directors abstaining: None. Directors absent: None. Motion carried 6 – 0.

A motion was made by Director Stan Propp and seconded by Director Travis Petersen to increase the Operation Superintendent’s salary by $1.00 per hour retroactive to January 1, 2017. Directors voting “Yes” were: Richard Kildow, Corey Henkel, Stan Propp, Larry Fiscus, Travis Petersen, and Kevin Stuart. Directors voting “No” were: None. Directors abstaining: None. Directors absent: None. Motion carried 6 – 0.

A motion was made by Director Travis Petersen and seconded by Director Richard Kildow to transfer $35.55 from account 142.10 Accounts Receivable - Energy to account 144.10 Provision for Uncollectible Accounts. Directors voting “Yes” were: Corey Henkel, Travis Petersen, Richard Kildow, Stan Propp, Larry Fiscus, and Kevin Stuart. Directors voting “No” were: None. Directors abstaining: None. Directors absent: None. Motion carried 6 – 0.

There was continued discussion concerning holding a strategic planning session in 2017. CFC was contact about having the strategic planning during the month of January 2018. This month is busy for CFC but they will see if their schedule allows it. An optional date would be mid-December if January won’t work. No action needed, no action taken.

Director Kevin Stuart reported on the NRECA Annual Meeting. There was also a written report from Accountant Shauna Abbott on the meeting.

Directors Travis Petersen and Corey Henkel reported on the NRECA Directors Training they attended.

There was a written report from Lineman D.J. Kearns on the NRECA TechAdvantage Conference.

The minutes for the quarterly Safety Committee Meeting were provided to the directors.

A motion was made by Director Kevin Stuart and seconded by Director Larry Fiscus to accept the Safety Meeting Minutes dated February 7, 2017. Directors voting “Yes” were: Stan Propp, Corey Henkel, Larry Fiscus, Travis Petersen, Richard Kildow, and Kevin Stuart. Directors voting “No” were: None. Directors abstaining: None. Directors absent: None. Motion carried 6 – 0.

Director Stan Propp reported on the March Tri-State Board Meeting.

A motion was made by Director Larry Fiscus and seconded by Director Corey Henkel to approve attendance to meetings and voting delegates and alternates as follows:

March 20 – 21, 2017 NREA National Electric Safety Code UpdateRon Hubbard

Kearney, NEScot Ouderkirk

April 4 – 6, 2017 Tri-State Board MeetingAll Directors

Tri-State Annual MeetingDiana Reich

Tri-State Membership Meeting

Voting Delegate:Travis Petersen

Alternate Voting Delegate:Corey Henkel

Directors voting “Yes” were: Richard Kildow, Larry Fiscus, Corey Henkel, Stan Propp, Travis Petersen, and Kevin Stuart. Directors voting “No” were: None. Directors abstaining: None. Directors absent: None. Motion carried 6 – 0.

There was no Other Business to discuss.

A motion was made by Director Stan Propp and seconded by Director Travis Petersen to adjourn the meeting. Directors voting “Yes” were: Travis Petersen, Corey Henkel, Stan Propp, Richard Kildow, Larry Fiscus, and Kevin Stuart. Directors voting “No” were: None. Directors abstaining: None. Directors absent: None. Motion carried 6 – 0.

The meeting was adjourned at 10:05 a.m.

Richard Kildow – Secretary/Treasurer