CORDOVA ELECTRIC COOPERATIVE, INC.
REGULAR BOARD MEETING
May 24, 2017
The Regular Meeting of the Board of Directors of Cordova Electric Cooperative, Inc. was called to order at 6:00 p.m. by Vice Chair Cook. Members present were Wooden, Faulkner, and Cooper. Director Pegau participated via teleconference. Director Little joined via teleconference at 6:10 p.m. Director Blackadar was absent. Also present were CEO Koplin, Manager of Administration and Finance Merritt, and Executive Assistant/HR Coordinator Bailer (Recorder). Manager of Generation and Distribution Newlun arrived later to join the meeting.
Dave and Tonya Zastrow, Kevin Kimber, and Nate Cain were present.
APPROVAL OF AGENDA
It was moved by Faulkner and seconded by Wooden to approve the agenda as presented.
Voice vote: Unanimous. Motion carried.
It was moved by Faulkner and seconded by Wooden to approve the consent agenda that includes the following:
- Minutes of April 26, 2017 Board Meeting
Voice vote: Unanimous. Motion carried.
PRESENTATION OF RESOLUTION 17-02 TO DAVE ZASTROW FOR BOARD SERVICE
Vice Chair Cook presented Dave Zastrow with a framed resolution in appreciation of his service on the CEC Board.
CEO Written Report
H&K, CTC, and CEC Lease Agreement: I was in recent correspondence with H&K and will be working on an easement agreement as time allows in the coming weeks.
Airport Facilities Relocation: We are executing a standard (reimbursable) contract for relocation of CEC facilities at Alaska State Department of Transportation expense.
COGUA (Canadian Off Grid Utility Association) Conference Accounting: We are conducting the accounting for the conference per CEC policy. If Board members are interested in attending any of the utility or vendor presentations, please let us know. I have attached a draft schedule which is being refined and updated through next week; note that there is a Power Creek tour from 9am to 11:30am for Board members that would like to join.
Website Updates: The Website launch is currently waiting for vendors to validate the online payment system, which we expect to occur by the end of the month. The draft website is available here: http://production.gbpro.net/cordovaelectric/
Crater Lake Update: We are proceeding with development of a geotechnical assessment plan, for a not to exceed amount of $20,000. The plan will be used as the basis for bidding out geotechnical assessment work, and for applying for the Army Corp Permits which are necessary for federal grant and loan applications.
Washington, D.C. Advocacy: On April 27th and 28th following the April regular board meeting, I met with Senator Dan Sullivan, Senator Murkowski, the CEO of NRECA, Representative Don Young, and staff of Senators Barrasso (WY), Cantwell (WA), Thune (SD). With congressional staff I encouraged consideration of Cordova projects and priorities for infrastructure including Cordova harbor upgrade, Crater Lake Water and Power Project, and Electric Energy Storage. General considerations included feedback on the new American Health Care Act (AHCA) and Cordova health services, renewable energy deployment and collaboration between CEC and national laboratories, infrastructure investments, and Secure Rural Schools funding (US Forest Service Receipts). I also invited the non-Alaska delegation to attend the Senate Energy and Natural Resources field hearing on June 10th and 11th. On May 4th I met with Alaska Governor’s representative in D.C. Craig Fleener and discussed all things Cordova, particularly energy opportunities. I also met with the staff of Senator Angus King (ME) to discuss hydro licensing and attending the Senate Energy Hearing. I met with the Director of Rural Development, Jim Elliot, to discuss RUS grant and loan programs for a variety of community, utility, and water project grants. Finally, I was able to meet with the Department of Energy Chief of Staff Brian McCormack and policy advisor Mark Maddox to discuss various CEC projects, goals, barriers, and opportunities and their broader implications to the energy industry and national policies in general. The meetings were good exposure for Cordova as Congress begins developing their infrastructure plans for the coming fiscal year.
Waterpower Week, Washington, D.C. On April 30th – May 3rd I attended WaterPower Week, a hydroelectric conference around policy, construction and operation, and all other aspects of the industry. The star of the show was Alex Hagmueller, who with his partner Max Ginsberg developed the wave energy device that won the Department of Energy’s $1,400,000 grant/prize to further develop their technology. In addition to meeting with vendors, partners, and regulators to discuss various CEC projects and developments, I was able to spend significant time with Alex to understand his technology, and arrange interviews with Pennwell’s Hydro Review Magazine and NRECA’s Rural Electrification (RE) Magazine.
NWPPA Annual Meeting: On May 8-10th, I attended the NWPPA Annual Meeting in Sun River, Oregon. I attended the committee meetings and general sessions including 4-hour Government Relations Committee meeting which covers all topics agency and policy related. The presentations were excellent including smart grid technologies, new predictive maintenance data analytics, website development and hosting, cyber security, rate structuring, and modular nuclear power plants. This concludes the majority of efforts at increasing visibility and seeking partners for CEC goals and opportunities and focus will shift to execution of the CEC 2017 strategic and operational plans.
OPERATIONS REPORT APRIL – MAY 2017
ORCA Power Plant
- Performed various planning and maintenance activities including large EMD maintenance, fuel metering and calibration, SCADA automation maintenance and door security alarms
- We have received a new battery charger for the plant DC system
Power Creek Hydro Plant
- Substantial maintenance at Power Creek including replacement of hydraulic hoses, hydraulic and lube oil filters, rewiring and reprogramming of dam blower and hydraulic skid variable frequency drives (VFD motors), battery backup system, turbine control relays, head level sensor, electric motor repairs, and 1 cfs discharge monitoring system.
- Cleaned and inspected Plant. Developing a scope of work for remaining 2017 maintenance.
Humpback Creek Hydro Plant
- Working on DC power system, 4 wheeler repairs, and forebay crane
CEC Fleet Vehicles
- Warranty and repair work on units 10, 28, 30, 34, 37, 39, and 40
- Yukon Fire Service has inspected our buildings and vehicles for proper fire protection.
- The overhead door openers at ESC are failing and have required extensive work.
- Started Eyak oiled soil site Remediation for 2017 season (enzyme inoculation).
- Boilers at HQ building have been shut down for the season.
- We have found out that a portion of our distribution system is in need of re-location due to the Airport construction job. We have secured an authorization from the State to relocate our facilities with the Airport Project paying for the $100,000 + relocate
- Four-tens schedule with line crew is working well
- A new NECA temp has been hired for construction projects.
- Conduit has been installed at the Chamber area, this is the beginning of the alleyway project.
- Equipment labeling is continuing as time allows.
- General Service Upgrades, employee training, meter reading, and maintenance repairs
- Shannon has earned her AA degree from the University of Alaska. Congratulations!
- Outage in Saddle Point from single phase oil switch to 77 through transformer 254.
Electric Energy Storage (EES) Project Update:
Sandia Laboratories has completed a draft report, and are reviewing it for final submittal to Alaska Center for Energy and Power (ACEP) “soon”.
Power Creek Instream Flow Report:
We received some unexpectedly good news, the FERC letter granting reduction of instream flow from 5 cfs to 1cfs and an associated reduction in monitoring/reporting requirements was issued May 17, 2017. This will allow CEC to accrue additional diesel fuel savings this summer of an estimated 1,000 – 5,000 gallons of diesel fuel.
Staff Performance Evaluations:
I have been working on probationary and annual performance evaluations, goal setting, and training needs assessment with staff.
CEO Verbal Report
Koplin gave an update on interest rates mentioning some of the short term rates have increased a little but long term rates have remained the same and we will continue to monitor them.
He mentioned the COGUA (Canadian Off Grid Utility Association) conference is underway in Cordova this week, some vendors have visited the Orca facility, and the overwhelming feedback is participants are really enjoying the conference and Cordova.
Discussion on the Power Creek instream flow with the recent reduction in monitoring/reporting requirements from 5 cfs to 1 cfs.
Discussion on the new CEC website and comments from directors on the information provided.
Director Little joined the meeting via teleconference.
Merritt reviewed the following reports:
- Statement of Operations for April
- Cash Flow Analysis for April
- Revenue Report for April
- Cash Disbursements for April
- Bankcard Services Summary of Charge Statement for 4/17/17
- Generation and Sales Statistics
Resolution 17-03 – Resolution of the Board of Directors Authorizing the Amendment and Restatement of the Retirement Security and 401(K) Pension Plan – Faulkner moved and Wooden seconded to approve Resolution 17-03 as written.
RESOLUTION OF THE BOARD OF DIRECTORS AUTHORIZING THE AMENDMENT AND RESTATEMENT OF THE RETIREMENT SECURITY AND 401(K) PENSION PLAN
For Cordova Electric Cooperative
REA(s) 02030-001 and 02030-002
WHEREAS, Cordova Electric Cooperative, is a participating employer in the NRECA-sponsored:
|Retirement Security (RS) Plan|
|401(k) Pension (401(k)) Plan|
WHEREAS the Board of Directors of Cordova Electric Cooperative is aware that the Plan(s) must periodically be amended to comply with new or changed regulations, rulings, legislation and plan operations, and that this restatement will be effective July 1, 2017.
THEREFORE BE IT RESOLVED that this Board authorizes the July 1, 2017 amendment, restatement and continuance of the Plan(s) to conform in its (their) entirety with all the provisions of the governing plan document(s) of the Plan(s), through the execution of the Adoption Agreement(s), which includes all of the provisions of the Cooperative’s most recently executed Adoption Agreement(s) and any compliance clarifications needed to conform with plan operations; and
BE IT FURTHER RESOLVED, in the event that the timing of the restatement does not correspond with regularly scheduled meetings of the Board of Directors, the Board does hereby authorize and direct Clay Koplin, Chief Executive Officer, to execute all necessary documents and to take any and all further actions necessary to carry out the July 1, 2017 amendment and restatement of the Plan(s).
SIGNATURE OF THE SECRETARY: I Cully Wooden certify that I am the Secretary of the Cordova Electric Cooperative Board of Directors. I further certify that the above is a true excerpt from the minutes of a board meeting of this Board of Directors on the 24th day of May, 2017, at which a quorum was present and that the above portion of the minutes has not been modified or rescinded.
Roll call vote: Unanimous. Motion carried.
Resolution 17-04 – Resolution Establishing Employee Rates for Reimbursable Projects – Faulkner moved and Wooden seconded to approve Resolution 17-04 as written.
WHEREAS, the Board of Directors of Cordova Electric Cooperative, Inc. is required to establish hourly rates for employees involved in reimbursable projects in accordance with Policy 30C – Reimbursement for Damages to Cooperative Property;
NOW, THEREFORE, BE IT RESOLVED, that the Cordova Electric Cooperative’s Board of Directors approves hourly straight time rates as follows:
Manager of Generation & Distribution $132.00
Line Crew Hours $109.00
Power Plant Operator $ 92.00
Power Plant Mechanic $ 86.00
Customer Service Representative $ 64.00
Laborer $ 42.00
Roll call vote: Unanimous. Motion carried.
Purchase Order #1960 to McMillen, LLC for $20,000.00 – Faulkner moved and Wooden seconded to approve Purchase Order #1960 to McMillen LLC in the amount of $20,000.00. Discussion. Roll call vote: Unanimous. Motion carried.
Equipment Source Inc. Excavator Lease Agreement for $20,400 (budgeted) – Faulkner moved and Wooden seconded to approve the Rental Agreement of the Kubota U55-4 Mini-Excavator from Equipment Sources Inc. for the period deemed necessary to complete CEC 2017 construction projects, not to exceed six months, or $20,400.00. Discussion. Roll call vote: Unanimous. Motion carried.
Arctic Office Products – Copier Lease Agreement (budgeted) – Faulkner moved and Wooden seconded to approve the 60-month Value Lease Agreement with Arctic Office Products for a Canon iRC5550i in the amount of $613.08 per month plus any overages in the allotted number of copies per month as presented. Roll call vote: Unanimous. Motion carried.
Set Board Self Evaluation & Goals – 2017 Performance Elements – Pegau said the Board Self Evaluations and Goals were adopted and Blackadar is working on the evaluation process. Board directed staff to move this item to the Board Pending Agenda.
Appointment of Bylaw Committee Chair – Discussion. Officers appointed Blackadar as Chairman of the Bylaw Committee. Staff will contact Blackadar, ask if he accepts the position, and explain the duties.
CEO Travel – Noted
Alaska Power Association Annual Meeting – Kodiak, September 12-15, 2017 – Discussion. The Board asked to have this on the June agenda at which time Directors will know if they can attend.
Credentialed Cooperative Director Training (CCD) – Discussion. The Board appreciates the information and staff will let the Board know if any CCD training will be offered at the Alaska Power Association Annual Meeting in September.
Newlun joined the meeting (was participating in the COGUA conference)
Discuss Capital Credits – The Board discussed Capital Credits, paying back Capital Credits to members, current cash flow, payments being made to Estates, risk assessment, investing in the cooperative, etc. Board would like to review this again during Budget planning.
CEC Web Page – Discussion on the new CEC web page. Directors are pleased with the web page, suggestions were made to the page explaining the CEC bills. Koplin asked the Board if there are any more suggestions or edits to let staff know before it goes live.
- Policy #46B – Hearing Conservation Program
- Policy #47C – Compensatory Time
- Board Site Visits and Infrastructure Assessment
- Director Training with Counsel in 2017
- Revenue Requirements Study – October
- CEC Scholarships – discussion
BOARD PENDING EVENTS CALENDAR
SUMMARY OF BOARD DIRECTION TO CEO
- Staff to talk with Blackadar about his appointment to Chair of Bylaw Committee
Pegau – Thanked Cook for Chairing the meeting. Good meeting.
Little – Thank you for meeting. Appreciates thoughts regarding the CEC scholarships. Good meeting.
Wooden – Good discussion on Capital Credits and Scholarships. Keep up with the good work.
Faulkner – Thanked Directors that participated via teleconference.
Cooper – Thank you for all the information. Good discussion.
Cook – Thanked staff and the Board.
Cooper moved and Wooden seconded to adjourn at 7:45 p.m.