CORDOVA ELECTRIC COOPERATIVE, INC. REGULAR BOARD MEETING
February 22, 2017
The Regular Meeting of the Board of Directors of Cordova Electric Cooperative, Inc. was called to order at 6:05 p.m. by Chairman Pegau. Members present were Little, Zastrow, Faulkner, Blackadar and Cooper. Director Wooden was absent. Also present were CEO Koplin, Manager of Administration and Finance Merritt, Executive Assistant/HR Coordinator Bailer (Recorder), and Project and Technology Coordinator Kuntz. Covel was present to assist Merritt with financial questions.
APPROVAL OF AGENDA
It was moved by Faulkner and seconded by Cooper to approve the agenda as presented. Voice vote: Unanimous. Motion carried.
It was moved by Faulkner and seconded by Cooper to approve the consent agenda that includes the following:
- Minutes of January 25, 2017 Board Meeting
- Related Party Checks
- Raven Good Enterprises – Check #65908 Dated 8/8/2016 for $561.00 Voice vote: Motion carried.
CEO’s Written Report
H&K, CTC, and CEC Lease Agreement: After evaluating alternatives for an agreement I recommend one of two options; 1) Board acceptance of the original proposal with minor modifications per the suggestions from CEC counsel, or 2) Maintain the status quo of restricted CEC access to the site and contacting H&K to arrange access during emergencies and for regular meter reading. There is an action item on this meeting agenda.
Human Resources: Our new Power Production Apprentice, Brian Wagner, has joined the CEC team this month and is busy training and learning the power system and equipment. Scott Peterson has also joined us as a NECA temporary lineman. Avalanche risks have been high this year and snow safety plan training and avalanche rescue are priorities.
Crater Lake Update: I recommend proceeding with the award of the Crater Lake Water and Power Project geotechnical assessment for the not to exceed amount of $500,000. A slide show summarizing this recommendation will be presented during the regular meeting.
Equipment Disposal: We threw away one and gave away 3 dilapidated desks from Orca Plant; policy 14B requires that the CEO report equipment disposal by other than public bid to the board.
Unit 31 vehicle was sold to a CEC employee through the public bid process per Policy.
220 MHz Adjusted Value: Several utilities purchased 220MHz radio bandwidth licenses in the late 1990’s which was supposed to unify communications between utilities across the state and offer options for our local fishing fleets, EMS, etc. When the hardware rolled out it was a flop. CEC invested $17,500 in two cash calls which grew to $17,815.44 book value with interest, but the whole concept failed, and our residual value as of 12/31/16 is $540.49. We have recognized the loss for 2016.
Power Production – It has been a busy month for power production with organization of the workspace that has already improved plant safety and work flow. Work on EMD diesel generator #3 continues as parts and materials arrive. Hydraulics problems at Power Creek and an air compressor issue at Humpback Creek have the department dodging weather events to access the sites and keep our hydro plants in service. Employee training, building and vehicle maintenance work rounded out the month.
Distribution – Training and work processes were priorities this month to adjust to the staff engineer departure and arrival of new apprentice Ben Simpler and new NECA temporary lineman Scott Peterson. Repairs to a faulted cable at 5.8 mile, a grueling switch upgrade at City Water Treatment Plant, snow removal, building maintenance and organization, street light maintenance, and vehicle maintenance were priorities this month.
CEC HQ Building Maintenance:
Native Village of Eyak Engineering consultants were on site this month assessing the condition of the CEC headquarters building at their expense and a report is pending for CEC. The roof drains clogged resulting in flooding in the hallway and several offices Monday.
Electric Energy Storage (EES) Project Update:
There is no update at this time, we are waiting to see the results of Sandia Laboratories work.
Power Creek Instream Flow Report:
We are converging on a 1 cfs requirement and hope to have this in place by October 2017.
Net Metering Tariff:
Staff will begin drafting a net metering tariff for board review.
CEO Travel Report:
I was honored to participate as keynote speaker in the Chugach Corporation regional summit in Anchorage February 3rd. This is a critical relationship for CEC; Chugach Alaska Corporation and The Eyak Corporation have been among our strongest partners, passing through $12,000,000 in grants and expediting project permitting and construction saving additional millions of dollars on our hydro project developments. The primary values of the conference were identification of regional economic development opportunities and communication of CEC projects, objectives, and partnering opportunities.
CEO Travel (Planned): While in Anchorage on February 3rd I followed up with Institute of the North regarding attending the Arctic Energy Summit in Helsinki Finland in September this year. This venue provides exposure to critical European and US opportunities of interest to CEC. I plan to attend this conference and seek US and international partners to meet CEC’s strategic objectives and will have high visibility as a multi-presentation speaker and panel moderator during the conference.
Other travel plans include the NWPPA trustee meetings in early March and late May. I have reduced my committee work and time commitment to the organization while fulfilling my remaining responsibilities as trustee and garnering NWPPA’s support for CEC goals and training needs.
I have planned a visit to Washington, DC the last week of April for NWPPA and project funding and the first week of May for congressional meetings and Water Power Week attendance as a featured speaker and panelist. These meetings are strategically selected to meet the needs of our members while remaining within our travel and training budget. I have included appointment of Scott Newlun as acting CEO from April 22nd – May 7th on this agenda for board approval per policy 2D.
CEO Verbal Report
Koplin reported a lube oil spill that occurred today at the Orca facility, saying this has been reported to the proper authorities and the spill was contained and cleaned up.
Upon question Koplin explained the history on the 220 MHz radio bandwidth license, saying the original investment has been consumed and CEC is recognizing the loss of $540.49 for 2016.
Upon question, Koplin spoke about attending the Arctic Energy Summit in Helsinki Finland in September. Pegau disclosed he is fully aware of this Summit, saying the organizers are trying to bring together experts from the Arctic region. Board would like more information regarding the trip.
Merritt reviewed the following reports:
- Statement of Operations for December – discussion
- Cash Flow Analysis for January
- Revenue Report for January
- Cash Disbursements for January
- Generation and Sales Statistics Covel left the
Board Self Evaluation & Goals – Review 2016 Performance Elements – The Board reviewed the list and discussed what was completed since the last review.
Set Board Self Evaluation & Goals – 2017 Performance Elements – Discussion. Board decided to put this item on the March Agenda to give them time to review the form used for 2016, edit it for 2017, and be prepared to discuss it at the March meeting.
Crater Lake Design – Power Point – Using a Power Point Presentation Koplin identified the costs and progress to date on this project, the remaining steps through project completion, and the details of the next step, which is the geotechnical assessment. The discussion of this item included the tollgates, selection of a contractor from the initial Request for Proposal for a Feasibility Study to the current status of the project, choice of Contractor for the Geotechnical Assessment, timing, cost, benefit to members, City’s involvement, etc.
Faulkner moved and Little seconded to direct staff to proceed with the geotechnical assessment of the Crater Lake Water & Power Project for a not to exceed amount of $500,000 with McMillen Jacobs & Associates. Discussion. Blackadar would like to know what the numbers to complete the Crater Lake Water & Water Project would be without the City’s involvement.
Other Directors expressed their interest in this number as well. Board requested a roll call vote.
Roll call vote: 5 Yea – Zastrow, Little, Faulkner, Cooper, Pegau. 1 Nay – Blackadar. Motion carried.
Koplin mentioned he would contact McMillen Jacobs & Associates with a Notice of Intent to Award the Geotechnical Assessment and provide a Contract for Board review at the March meeting.
Kallander & Associates Contract –. Pegau said the Board did not receive a copy of the contract and asked if the Board wants to move forward without reading it. Koplin said he drafted a Contract and hoped to have it to the Board before the meeting, however, Kallander has been traveling so he was not able to meet with her to coordinate the terms. Also, Koplin wanted to have counsel review it before presenting it to the Board. Discussion.
Faulkner moved and Cooper seconded to postpone this item to the next meeting. Voice vote: Unanimous. Motion carried.
Approval of Acting CEO Delegation – Upon question Koplin said he does not always designate an Acting CEO when traveling as he can be reached by phone and/or email.
Blackadar moved and Cooper seconded to approve the CEO’s appointment of Scott Newlun as Acting CEO during the CEO’s April 22-May 7 absence. Voice vote: Unanimous. Motion carried.
CEO Travel – Noted
Board Providing Goods & Services to the Cooperative – Noted
Thank You Card from Cordova Arts & Pageants – Noted
- Policy #42 – Dependent Care Assistance for Employees
- Policy #43 – Underground Locates
CEO Contract Renewal – Faulkner moved and Cooper seconded to go into executive session at 8:13 p.m. to consider matters, the immediate knowledge of which would clearly have an adverse effect on the finances of the Cooperative. Voice vote: Unanimous. Motion carried.
Bailer was excused from Executive Session. Merritt and Kuntz were excused for the remainder of the meeting.
The meeting was called back to order at 8:18 p.m. Bailer was invited back to the meeting. Chairman Pegau said no action was taken during Executive Session.
Little moved and Faulkner seconded to accept the CEO Contract as presented in Executive Session. Voice vote: Unanimous. Motion carried.
- Board Site Visits and Infrastructure Assessment
- CEC Annual Meeting, Monday, March 27 – Mt Eccles – Board asked if a meeting directly after the Annual Meeting was necessary, or could the Board certify the election results at the next Board meeting. Discussion. It was decided there would be a Board meeting directly after the Annual Meeting to certify the election. Board will elect officers at the April
- Director Training in 2017
- Discuss Capital Credits
BOARD PENDING EVENTS CALENDAR
SUMMARY OF BOARD DIRECTION TO CEO
- Provide Board information regarding Credentialed Cooperative Director courses
- Seek legal review of Kallander & Associates Contract
- Proceed with Crater Lake Geotechnical Assessment
Zastrow – no comments
Faulkner – Good discussion with everyone. Everyone was prepared. Thank you. Little – Good meeting. He appreciates the Boards comments and staff’s work.
Cooper – no comment
Blackadar – Thanked Koplin for having Merritt available before the meeting to answer any questions regarding the cash disbursements with Directors.
Pegau – The CEO evaluation is extremely important and he didn’t get each Director’s evaluation back in time to conduct the evaluation at this meeting so he directed Directors that have not returned their completed evaluation forms to him to do so by March 3, 2017.
Cooper moved and Little seconded to adjourn at 8:37 p.m.