CORDOVA ELECTRIC COOPERATIVE, INC.
REGULAR BOARD MEETING
July 26, 2017
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 Little, Faulkner, Cook, Blackadar, and Cooper. Director Wooden was absent. Also present were CEO Koplin, Manager of Administration and Finance Merritt, Manager of Generation and Distribution Newlun, and Project and Technology Coordinator Kuntz. Executive Assistant/HR Coordinator Bailer was on leave.
APPROVAL OF AGENDA
It was moved by Faulkner and seconded by Cooper to approve the agenda as presented. Cooper moved to amend the agenda to add Item F to New Business as Primary and Secondary SCADA Communications Upgrade, seconded by Faulkner.
Voice vote on the amendment: Unanimous. Motion carried.
Voice vote on the main motion: Unanimous. Motion carried.
It was moved by Faulkner and seconded by Blackadar to approve the consent agenda that includes the following:
- Minutes of June 28, 2017 Board Meeting
- Approve New Members 4/1/17 – 6/30/17
Voice vote: Unanimous. Motion carried.
CEO Written Report
Website Updates: Just a reminder that the new CEC Website has launched at www.cordovaelectric.com and now includes an option for online or automated phone system bill payment at 877-885-7968 under “payment options” at the bottom of the home page.
Crater Lake Update: The draft geotechnical plan was delivered to CEC this week and is being reviewed by staff for use in applying for permits and grants for the project.
Interest Rate Summary: I have attached a revised Long Term Debt Summary which shows the interest rate fixes placed in June including a $1.5M 3.16% 2-year fix, a $1.5M 3.27% 3-year fix, and a 1.0M 3.72% 7-year fix. Low end fixes cover our expiring fixes and cover the brackets where rates are rising fastest at minimal increased interest cost. Long term rates are still low and we will continue monitoring for fixes.
Electric Energy Storage Update: The final report has not been issued by Sandia yet. We were contacted by the national laboratories to participate in a $5,000,000 Grid Modernization Laboratory Consortium project grant through the Department of Energy. CEC expressed interest in participating if it resulted in field applications that actually benefit Cordova as they solve national grid problems with applicability across Alaska and the rest of the US. Sandia and Idaho National labs are drafting the proposal and I will be reviewing and contributing to the final copy by next Tuesday.
Kallander and Associates Services Agreement: At the March 22, 2017 regular meeting the board approved a draft contract services agreement but shared my concern for bonus provisions. Work schedules and delays in federal infrastructure legislation did not result in execution of that contract. I asked for a revised proposal without bonus provisions. I am executing the new agreement per policy 6-C B. 2. which delegates staff and CEO support consultant procurement to the CEO. The contract will not exceed $10,000 or one year without board approval. I have attached the agreement to this report for your information.
Staff Performance Evaluations: I have completed all staff mid-term and probationary evaluations.
I have no work related travel for July or August
K&H and CEC Lease Agreement: I prepared a final lease agreement and easement form for K&H, LLC. It incorporated the CEC attorney’s recommendations, which closed a few loopholes and assured permanence of the easement. Given the investment in staff time and legal fees to develop an agreement that both protects CEC and accommodates present and future access and development of this site, I would the board to approve them with the understanding that I will retain some flexibility to make minor modifications to final documents without compromising council’s recommendations or the value proposition for CEC. The alternative to this negotiated agreement is an estimated $50,000 – $100,000 condemnation process that would likely result in less property rights that K&H is currently offering. I encourage the board to carefully review this agreement and identify any specific terms that are objectionable and contact me before the meeting so that I can work to resolve them.
PCS IT Remote Services Agreement: A cover memo and suggested motion are included on this meeting agenda. My miscommunication with staff resulted in the contract being on the July, rather than June, agenda.
Lock and Stitch Revised Purchase Order: This was an unbudgeted expense that exceeded $10,000 due to actual exceeding estimated repair costs, so it is included in this agenda as a new business item.
COGUA (Canadian Off Grid Utility Association) Conference Accounting: The Canadian Off Grid Utility Association Meeting accounting resulted in a positive balance of $7,867.32. An action item for closing the bank account and returning the conference net income to COGUA is included in this board agenda.
OPERATIONS REPORT APRIL – July 2017
ORCA Power Plant
- Repaired Caterpillar fuel tank and evaluated Caterpillars for 2018 rebuild
- Cathodic Protection installed on CEC Orca plant fuel delivery line
- Cold Stitch temporary repair for Unit #4 diesel – Fairbanks Morse is working well
- Repaired Unit 3 EMD diesel frequency control problem
- New air conditioner installed for server cooling
- All diesel units are in good operating condition and available for service
- Reached 8.8 MW peak load this week, near record levels
Power Creek Hydro Plant
- Communications failures and maintenance, evaluating fiber and microwave upgrades
Humpback Creek Hydro Plant
- New 4-wheeler received
- Evaluating Microwave communications back-up
CEC Fleet Vehicles
- Regular maintenance and repairs
- Repaired overhead shop doors
- Cleaning Brush around equipment for safety and extending equipment life
- New services on Whitshed and 2 Mile CRH and Cabin Ridge Road
- Faulted service 6.5 mile – spliced/repaired
- Alleyway OH/UG conversion started
- Inventory count and reconciliation completed
CEO Verbal Report
Upon question Koplin discussed the Electric Energy Storage project grant and CEC’s participation in the funding.
Koplin mentioned electric vehicle charging stations in Cordova and using funds from the Renewable Energy Fund for this project. Discussion.
Upon question Koplin explained CEC does not have a Lobbyist at this time. He discussed his work in Washington DC and the contract with Kallander and Associates and how she can provide support not as a Lobbyist, but as a liaison. Discussion ensued regarding the work of Kallander and Associates.
Merritt reviewed the following reports:
- Financial Reports for June
- Cash Flow Analysis for June
- Revenue Report for June
- Cash Disbursements for June
- Bankcard Services Summary of Charge Statement for 6/17/17
- Generation and Sales Statistics
Director Blackadar (Dr. Blackadar) was called out for work and left the meeting.
K&H, LLC Lease and Easement Agreements – Faulkner moved and Cook seconded to approve the K&H, LLC Land Lease Agreement and exhibits A, B, and C for $1 per year for twenty years with any minor modifications that staff finds necessary. Discussion. Photos/videos will be taken of the site for before and after for Agreement comparison. Voice vote: Unanimous. Motion carried.
PCS IT Remote Support Services Agreement (July-December 2017) – Faulkner moved and Cooper seconded to approve the 2017 PCS IT Services Agreement for a not to exceed amount of $15,000 for July 2017 through December 2017 services. Voice vote: Unanimous. Motion carried.
Lock N Stitch Revised Purchase Order #1973 from $8,919.25 to $10,037.93 – Little moved and Faulkner seconded to approve the Unit 4 Engine Repairs to Lock and Stitch for $10,037.93. Voice vote: Unanimous. Motion carried.
Close FNBA COGUA Account – Cooper moved and Little seconded to close the FNBA COGUA account. Discussion. Voice vote: Unanimous. Motion carried.
Review and Discuss Strategic Plan Mid-Term Goals (2018-219) – Pegau wanted to review the Mid-Term Goals and a discussion ensued.
Primary & Secondary SCADA Communications Upgrade – Cooper moved and Cook seconded to approve the SCADA Communications Microwave Upgrade Design with New Horizons Telecom Inc. for a not to exceed amount of $11,487.30. Koplin said CEC has been looking at alternative communication systems for Humpback Creek and Power Creek. Discussion. Voice vote: Unanimous. Motion carried.
NRECA Training 2620 and/or 2640 – Pegau said the Board approved this training and Koplin mentioned the Board did approve it and choose a date, asking Management to secure the dates, trainer(s), and cost. Koplin said NRECA’s trainer that can teach both the Board Operations and Process course, and Financial Decision Making course is not available, therefore, there will be a separate trainer for each training course the Board requested. Board directed staff to continue with the scheduling for both courses and invite other cooperatives to attend. Pegau reminded Directors to schedule November 6-8 for the training.
CEO Travel – Noted
Winston Tan CEO Evaluation Questionnaire – Pegau asked Directors to complete the evaluation and send it to Winston Tan by Friday. He mentioned staff can assist with emailing it to Mr. Tan.
- Policy #52B – Secondary Employment
- Policy #53A – CDL Mandatory Drug Testing Policy
- Board Site Visits and Infrastructure Assessment
- Revenue Requirements Study – October
- CEC Scholarships
- Set Board Performance Elements – evaluation process
- Capital Credits – September (Budget prep for 2018)
- Hydrokinetic Energy Technology (CEO presentation)
BOARD PENDING EVENTS CALENDAR
SUMMARY OF BOARD DIRECTION TO CEO
- Information to Board re: electric vehicle charging stations – August Agenda
- Schedule Board Training and invite others
- Distribute Title Power Feasibility study to Board and add to Dropbox
Little – good meeting, thanks for everyone’s comments
Faulkner – thanked everyone. Faulkner said what we put on staff is quite a bit and she appreciates the staff’s hard work. Faulkner also appreciates the dedication of the Board.
Cook – thanked everyone
Cooper – thanked everyone
Pegau – extends his appreciation to staff
Faulkner moved and Little seconded to adjourn at 7:48 p.m.