Summary of September’s board meeting

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Posted on Dec 18 2024 in Decatur County REMC

Chairman Steve AmRhein called the meeting to order at 5:30 p.m., and Steve Nobbe recorded the minutes. All board members, CEO Brett Abplanalp, employees Matt Raver and Crystal Greathouse, and representatives from Aclara and Brownstown were present.

Dale Wernke moved to approve the meeting agenda. Brian Scheidler seconded the motion, which was unanimously approved.

SAFETY MINUTE AND COOL MOMENT

Abplanalp shared a safety moment highlighting that October is National Cybersecurity Awareness Month. The cool moment featured the Round-Up Trust awarding grants to 14 local organizations, totaling $14,800.

APPROVAL OF PREVIOUS MEETING MINUTES

Suzanne Parmer moved to approve the minutes from the board meeting on Aug. 28, 2024, and the executive board meeting minutes from the same date. Jason Barnhorst seconded the motion, which was unanimously approved.

RF METER REPLACEMENT FEASIBILITY

Aclara, Brownstown, and Greathouse presented a business case to the board for replacing the aging meters. Key highlights of the presentation included existing equipment failures and the risk of further failures in the field, the introduction of new technology through an RF meter network, and current pricing quotes.

Nobbe moved to approve $2.3 million for the deployment of an RF meter system to be completed by a third party over one and a half years. Wernke seconded the motion, which was unanimously approved. The board requested a financing plan to be presented at the next meeting.

CEO UPDATE

Abplanalp provided an update on strategic projects, including the safety improvement plan, pole replacement program, construction work plan, RF meter feasibility, and the fiber project.

He also covered company metrics as prepared on CTO. August’s median temperature remained consistent with our five-year average. Wholesale purchased energy decreased by 1.6% compared to the five-year average, and demand was down 0.8%. Year-to-date energy sales were 1.44% above budget. There were no major storms during August.

FINANCIAL UPDATE

Raver provided the financial update. The net utility plant increased by $154,734 in August, bringing our current equity to 64.77%. Year-to-date revenues are above budget, and power costs have also risen, resulting in a gross margin that exceeds budget by $286,298. Controllable expenses are under budget by $245,315, primarily due to savings in labor and right-of-way costs. The cash flow statement shows a starting balance of $764,189, and we ended the month with a net cash decrease of $447,509, resulting in an ending cash balance of $316,680.

NEW BUSINESS

FIBER MARKETING BUDGET

Abplanalp presented a budget request to support marketing for our fiber business, which has proven essential in other cooperative projects to achieve desired take rates.

Parmer moved to approve $21,000 for marketing the fiber business, Scheidler seconded the motion, and the board unanimously approved it.

COMMUNITY TRUST AWARDS

Abplanalp announced the recipients of the Round-Up Trust awards.

IEC DIRECTOR AND VOTING DELEGATE

Barnhorst nominated AmRhein for the IEC Director position. No other nominations were submitted, closing the nominations. Barnhorst then moved to approve AmRhein as the IEC Director. Parmer seconded the motion, which the board unanimously approved.

Barnhorst nominated Nobbe for the IEC voting delegate position and Scheidler as the alternative. No other nominations were submitted, which closed the nominations. Parmer then moved to approve Nobbe for the IEC voting delegate position and Scheidler as the alternative, Scheidler seconded the motion, and the board unanimously approved.

BUDGET PRESENTATION AND DECEMBER BOARD MEETING DATES

The board discussed management’s recommendation. Barnhorst moved to:

  • Reschedule the November board meeting to Tuesday, Nov. 26,
  • Reschedule the December meeting to Wednesday, Dec. 18, and
  • Hold a budget presentation at a special board meeting on Tuesday, Dec. 12, at 10 a.m.

Nobbe seconded the motion, and the board unanimously approved it.

POLICY REVIEW

The board reviewed the following policies:

  • Policy 2-08: Member Access to Corporate Records, updated to allow electronic communication.
  • Policy 10-10: Establishment of Safety Policy, no changes.
  • Policy 1-16: Director Conduct Policy, no changes.
  • Policy 1-10: Director Code of Ethics and Oath of Office, no changes.

Wernke moved to approve the recommended changes, Parmer seconded the motion, and the board unanimously approved the updates.

OLD BUSINESS

BYLAW LEGAL REVIEW

The board reviewed the proposed changes to the bylaws made last month, which primarily involved clarifications and cleanup.

Wernke moved to approve the recommended changes, Barnhorst seconded the motion, and the board unanimously approved the changes.

LONG-TERM DEBT/LOAN WITHDRAWAL

Raver requested approval to withdraw from a completed construction work plan loan.

Wernke moved to withdraw $250,000 for a term of 30 years. Parmer seconded the motion, which was approved by a vote of 6-1.

AFFILIATED ORGANIZATIONS

Barnhorst gave a brief update from Hoosier Energy and the upcoming power plant tour.

DIRECTOR TRAINING/CONFERENCE REPORT OUT

Nobbe discussed his takeaways from his fifth and final CCD course, 2630.

Carl Riedeman moved to adjourn the meeting, and Parmer seconded it. The motion passed unanimously, and the meeting was adjourned at 8:22 p.m., and the board moved into executive session.