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Cordova Electric Cooperative > Minutes  > December 2017
Cordova Electric Cooperative

December 2017

CORDOVA ELECTRIC COOPERATIVE, INC.

REGULAR BOARD MEETING

The Regular Meeting of the Board of Directors of Cordova Electric Cooperative, Inc. was called to order at 6:00 p.m. by Chairman Pegau. Members present were Cook, Cooper, Faulkner, and Phillips. Director Little joined at 6:30 p.m. Director Wooden was absent. Also present were CEO Koplin, Manager of Administration and Finance Merritt, Manager of Generation & Distribution Newlun, and Project & Technology Coordinator Kuntz.

MEMBERSHIP PARTICIPATION

None

APPROVAL OF AGENDA

Faulkner moved and Cook seconded to approve the agenda as presented. Pegau asked to amend the agenda to add an item, Purchase Order #2010 to the City of Cordova in the amount of $25,245.00, under New Business. It was moved by Pegau and seconded by Cooper to approve the agenda as amended.

Voice vote: Unanimous. Motion carried.

GRID MODERNIZATION LABORATORY CONSORTIUM (GMLC) PRESENTATION – This item was moved to a later time on the Agenda to allow time for the presenter to teleconference into the meeting.

CONSENT AGENDA

It was moved by Faulkner and seconded by Cooper to approve the consent agenda that includes the following:

a) Minutes of November 16, 2017 Board Meeting

b) Minutes of Special Meeting of December 13, 2017

Voice vote: Unanimous. Motion carried.

MANAGEMENT REPORTS

The administrative reports were reviewed before the CEO report as the Board waited for Dr. Rob Hovsapian to teleconference in for the GMLC presentation.

ADMINISTRATIVE REPORTS

Merritt reviewed and discussed the following reports:

Financial Report for November

Cash Flow Analysis for November

Revenue Report for November

Cash Disbursements for November

Bankcard Services Summary of Charge Statement for 10/17/17

Generation and Sales Statistics

GRID MODERNIZATION LABORATORY CONSORTIUM (GMLC) PRESENTATION

Dr. Hovsapian from Idaho National Lab (INL) called in at 6:15 p.m. and gave a presentation regarding the Grid Modernization Laboratory Consortium (GMLC). Discussions ensued during the presentation.

CEO REPORT

CEO Written Report

Interest Rates: Interest rates have risen another 25 basis points in the December Fed meeting. Barring any unexpected shifts, I anticipate fixing $3,000,000 between 15 and 20 years at approximately 4.6%. This will increase our blended rate to approximately 3.6%, only slightly above the budgeted 3.5%, and will leave approximately 70% of our total portfolio fixed and 30% variable as we enter the New Year. The Fed is anticipated to perform 3 rate increases in 2018, part of the impetus to fix a larger percentage of the portfolio now.

Electric Energy Storage (EES) and GMLC Project Update: The Department of Energy (DOE) Energy Storage department staff were in Cordova this month in conjunction with the Grid Modernization Laboratory Consortium (GMLC) grant, and we mapped out the rough roadmap for the energy storage (battery) project as well as the GMLC.

Electric Vehicle Charging Stations: The EV charging stations (Clipper Creek) were installed at the Cordova Center this Tuesday and Wednesday, and energized yesterday afternoon. A press release and an article for the Cordova Times explaining the rationale and use of the charging stations is pending.

Power Creek Road Washout: Power Creek Road washed out again in December rains, and there were three landslides on Power Creek Road, one past the last residence and the new avalanche gate just before the lake ends and two on CEC power plant access road. During the wind storms of 12-11-17 there were no outages and our GMLC attendees noticed with awe.

Tariff Schedule 600, 700, 4.7 and 4.8 consolidation: I have deferred work on this tariff until January.

Equity Management Plan Recommendations: I have also deferred work on these recommendations until the board decisions on payment of capital credits at this meeting.

CEC HQ Building: I have begun contacting brokers and agents to consider a listing/offering format for listing in 2018, but not yet conducted a high level cost benefits analysis, deferred until 2018.

Recommended Legislative Priorities for 2018:

Recommended legislative priorities for 2018 include, in the order of suggested priority:

Crater Lake Funding (Federal/State)

Power Creek Road Upgrade (State/Federal)

Shepard Point Road (Federal/State)

Cordova Harbor (Federal/State/City)

Protect PCE funding (State)

Monitor HB 199 (habitat protection)

CEO Travel/Report: Craig Kuntz and I travelled to Anchorage on November 28th to attend the Native Village of Eyak’s Shepard Point Road reception. I was provided a 3-hour tour of the Alaska Native Tribal Health Consortium facilities – the Alaska Native Medical Center campus in particular, and provided an outline of how ANTHC was partnering with small community hospitals to improve the business model and profitability of both. At the reception we were briefed on the present status of the Shepard Point Road project including anticipated 2018 work and as a result are working with NVE to see if we can cost share Crater Lake geotechnical work. The morning of the 29th we attended a breakfast meeting hosted by Commonwealth North “Off the Grid – Energy for a Sustainable North America” where we enjoyed presentations by energy industry leaders and networked before and after. Later that morning we met with the Eyak and Chugach Alaska Corporations to discuss several projects of joint interest including Shepard Point, Humpback Creek, Harbor upgrade, Crater Lake, and Raging river prospects as well as 13- mile energization and wetlands restoration opportunities. We also discussed the challenge and cost of delivering power to Shareholder Land Use Parcels (SLUP lots) sited in remote locations. That afternoon I met with Dr. Micah Hahn, UAA, regarding electrical energy contributions to local food production (produce) in Cordova as she prepares to spend another summer here. That evening I met with Gwen Holdmann, Director of Alaska Center for Energy and Power (ACEP) to discuss the GMLC kickoff and dinner the following evening with office of naval research and their consultants considering microgrid projects in Alaska. On the morning of 11/30/17 I met at Alaska Village Electric Cooperative (AVEC) to discuss microgrid business opportunities, the GMLC, legislative policy, and other topics with Meera Kohler and Gwen Holdmann. I briefly attended the Bureau of Indian Affairs (BIA) provider’s conference later that morning and afternoon, touching base with the DOE, National Renewable Energy Laboratory (NREL) staff, and other energy-related desks at the conference. That evening I attended a dinner with Gwen Holdmann, ACEP and University of Alaska, Fairbanks (UAF) staff, and the Office of Naval Research (ONR) to discuss microgrids and remote deployment projects in Alaska. I took personal leave Friday, Monday, and Tuesday to attend the Board of Fish Prince William Sound finfish meetings in Valdez and returned to Cordova Tuesday afternoon hours ahead of the storm.

I plan to attend the APA legislative fly-in in Juneau, leaving on January 29th to attend January 30th meetings and the conference itself the 31st-2nd. I can work with any Board attendees to arrange any desired meetings with legislative staff and/or administration staff. I am tentatively planning a trip to Washington, D.C. in February or later as part of the GMLC briefing to meet with DOE waterpower division staff regarding potential funding for Crater Lake. There are early indications that this would be an ideal time to refresh our infrastructure funding request through our congressional offices as Congress finally appears to be considering the Trump administration’s infrastructure package in January.

Generation/Distribution Departments Monthly Report November-December 2017

Power Production Manager and Operations Foreman traveled to the NWPPA conference in Anchorage and attended the energy storage workshop that was put on by ABB and Chugach Electric. It showcased the Energy Storage System that they have installed for their system. There was a variety of other workshops, presentations, and vendors. Cranes, bucket trucks and hot sticks have been inspected and certified.

We are back in Avalanche season, had our training, and are getting regular updates from our forecaster.

ORCA Power Plant

The main plant PLC has been updated.

Our double walled 2,000 gallon lube oil tank has been installed and the oil from the old single walled 8,000 gallon tank has been transferred.

Lock-N-Stitch has sent their technician back to rework a leak in the cylinder on unit 4.

Unit 3 has some cracks in the exhaust piping that are being repaired.

Materials have been ordered for CAT top end rebuild in January.

Fuel meters are in transit.

Battery Bank is also in transit.

Power Creek Hydro Plant

We have repaired a leak on the dam and have noticed some wear and cracks in the outer coating. At this time we are investigating with experts in the field.

Plant and Forebay PLC’s have been upgraded.

Working on getting valves shipped from BC to Cordova.

Also setting up inspection of penstock and plant components.

The road has washed out several more times and we had a small landslide at the Plant road inside the gate that needed to be cleared.

Humpback Creek Hydro Plant

Plant and Forebay PLC’s have been upgraded.

The new Hoist and protective cover have been installed at the Forebay.

CEC Fleet Vehicles

Routine oil changes and Maintenance.

Backup alarms “beepers” have been installed on service trucks.

Unit 34 was taken to Anchorage and had the transfer case replaced.

Buildings

Routine maintenance.

Had to call a plumber in to repair some pipe leaks at Illanka side of building.

Distribution

The Line Crew has installed the four Electric Vehicle (EV) chargers at the Cordova Center.

Christmas tree was decorated and then reestablished after a wind storm broke it in half.

One of our vendors helped put on a locator training session for our CEC crew and employees from CTC and the City of Cordova.

New services installed.

Meter reading, service connects and other routine maintenance.

CEO Verbal Report

Discussion on prioritization of 2018 legislative priorities. The list was prioritized as follows:

Advocate for:

Power Creek Road Upgrade (State/Federal)

Protect PCE funding (State)

Crater Lake Funding (Federal/State)

Monitor internally:

Shepard Point Road (Federal/State)

Monitor HB 199 (habitat protection)

Koplin mentioned there was an oil release caused by a small leak, approximately a gallon, inside the Cat van, nothing external, and it was non-reportable.

Koplin said CEC received a bill from the City of Cordova for asphalt repairs that exceeds his budgeted item purchase authority and requires Board approval, therefore, the Board was asked to include this on the Agenda to close it out as a 2017 expense. Koplin distributed a copy of the Purchase Order for Board review.

Koplin mentioned CEC has been conducting Customer Satisfaction Surveys, which are trending well above 95% with more 5+’s and 6’s than 4’s on a five-scale. These are the highest numbers he’s seen and it is an honest survey (no cherry picking). After concerns about customer service in 2016, there have been marked improvements, say our members.

Koplin said CEC had another great year. He mentioned accurate, timely, and intelligent accounting is essential to good management decisions. You can’t manage what you don’t measure, and our decisions are based on good numbers and data, which are essential for managing tightly in a small, dynamic environment. Koplin said Merritt hasn’t missed a beat.

Koplin mentioned there was one minor lost-time accident for a finger pinch in January, CEC’s only lost time accident this year and the first in nearly five years of reporting.

Koplin mentioned he included an update of the Strategic and Operating Plan as of December 22, 2017. Discussion.

NEW BUSINESS

Purchase Order #2009 to Professional Computer Systems for $30,697 – Faulkner moved and Phillips seconded to approve Purchase Order #2009 to Professional Computer Systems for the not to exceed amount of $30,697. Voice vote: Unanimous. Motion carried.

Kallander & Associates Outside Services Contract – Faulkner moved and Little seconded to approve the 2018 Services Contract with Kallander and Associates, Inc. for a not to exceed amount of $20,000. Discussion. Voice vote: 0-yea, 6 nay. Motion failed. Board referred this to staff to bring to the next meeting with a summary of 2017 services and details for why a 2018 contract might exceed the monthly retainer.

Bill Thomas Outside Services Proposal – Faulkner moved and Cook seconded to approve a monitoring services agreement with Bill Thomas, Jr. not to exceed $20,000. Discussion. Voice vote: 4 yea – 2 nay (Cooper and Phillips). Motion carried.

Board Appointment to Alaska Power Association and ARECA Insurance Exchange Boards – Faulkner moved and Phillips seconded to appoint Joe Cook to the Alaska Power Association and ARECA Insurance Exchange Boards with Cooper as the alternate. Discussion. Voice vote: Unanimous. Motion carried.

Bylaw Committee Recommendation – Cooper moved and Little seconded to adopt the recommendation of the CEC Bylaw Committee for no recommended Bylaw changes at the 2018 Annual Membership Meeting. Voice vote: Unanimous. Motion carried.

Janitorial Services Award – Faulkner moved and Cooper seconded to award the janitorial bid to Fresh & Shine Cleaning Service for the amount of $1,250 per month. Discussion. Voice vote: 5 yea – 1 nay (Cook). Motion carried.

Bad Debt Write-offs – Faulkner moved and Little seconded to approve the bad debt write-offs totaling $1,897.46 as presented:

Member Account # Amount

Amanda Lynch 481981 $426.47

Maria Pabon 482855 19.18

Taya Moore 483370 694.22

Brad Patterson 36313 215.08

Ian Symmonds 35594 219.18

Glen Hayden 43530 127.43

Matthew Johnson-Beltz 44635 195.90

Discussion. Board gave kudos to the customer service department for keeping the write-offs low. Voice vote: Unanimous. Motion carried.

2018 Insurance Binders – Faulkner moved and Phillips seconded to approve the purchase of insurance coverage from ARECA Insurance Exchange and Parker, Smith and Feek for 2018 for a total amount not to exceed $329,311.00. Discussion. Voice vote: Unanimous. Motion carried.

Director Phillips was excused from the meeting at this time for a home emergency.

2018 Budget – Cook moved and Faulkner seconded to adopt the Cordova Electric Cooperative 2018 Budget as presented. Discussion. Voice vote: Unanimous. Motion carried.

Alaska Power Association State Legislative Conference – Juneau, January 30-February 1, 2018 – Faulkner moved and Little seconded to approve the attendance of two directors, Cook and Cooper, to the 2018 APA Legislative Conference in Juneau, Alaska. Discussion regarding sending another Director, Phillips, if he is willing, and the training that is being offered. Cooper moved to amend the motion to approve the attendance of three directors to the 2018 APA Legislative Conference in Juneau, Alaska, seconded by Little. Voice vote: Unanimous. Motion carried.

Purchase Order #2010 to the City of Cordova in the amount of $25,245.00 – Cooper moved and Little seconded to approve Purchase Order #2010 to the City of Cordova in the amount of $25,245.00. Discussion. Voice vote: Unanimous. Motion carried.

OLD BUSINESS

Capital Credit Options – Discussion on how to disperse capital credits.

INFORMATION ITEMS

CEO Travel – Noted

NRECA Board Self-Assessment Form – Review – Noted

OTHER ITEMS

Policy Review

Policy #62 – Whistleblower Policy

Policy #63A – Conflict of Interest

EXECUTIVE SESSION

None

PENDING AGENDA

Board Site Visits and Infrastructure Assessment

Board Self-Evaluation & Development 2017 – Performance Elements – January

BOARD PENDING EVENTS CALENDAR

SUMMARY OF BOARD DIRECTION TO CEO

The Kallander & Associates contract to be included on the January agenda with a summary of work to date and a clearer scope of work for 2018

Check on direct deposits for capital credits

BOARD COMMENTS

Cooper moved and Little seconded to adjourn at 9:15 p.m.

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