CORDOVA ELECTRIC COOPERATIVE, INC. REGULAR BOARD MEETING
November 21, 2016
The Regular Meeting of the Board of Directors of Cordova Electric Cooperative, Inc. was called to order at 6:04pm by Chairman Pegau. Members present were Blackadar, Faulkner and Cooper. Zastrow, Wooden and Little were absent. Also present were CEO Koplin, Managers of Administration and Finance Covel and Merritt, Executive Assistant/HR Coordinator Bailer (Recorder), Manager of Generation and Distribution Newlun, and Project and Technology Coordinator Kuntz.
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:
- a) Minutes of October 26, 2016 Board Meeting Voice Vote: Motion carried.
CEO’s Written Report
Budget: Refer to October Financials in Packet. There will be a high level budget presentation at the meeting, and a decision on whether to hold a special meeting for the detailed budget review, or a distributed copy for review and approval at the December meeting. Management staffing changes have delayed the budget preparation process this year.
Alaska Power Association (APA) and National Hydropower Association (NHA) Meetings: The enrollment for these meetings and sponsorships are high. Both NHA and APA are well booked.
Scott Newlun has joined CEC as manager of Generation and Distribution – his comprehensive production and operations/engineering report is included in this packet. The power production apprentice position will likely be filled by the end of the month, as will the line apprentice position. A temporary journeyman lineman was hired for coverage through the winter months.
SPCC Plan Update: The SPCC plan was completed and adopted just before the October oil spill, and is awaiting my final review and engineer’s stamp for completion. The plan will remain in effect for five years unless there are significant changes in the way CEC stores and/or handles fuel, lubricants, or hydraulic fluids.
Crater Lake Update: Crater Lake will be a key consideration for the 2017 capital budget.
IBEW Contract: Although the contract has been ratified by both parties, implementing the modifications has proved much more complex than anticipated, and we are currently implementing the software and contract changes necessary to wrap up the process. This has had somewhat of an impact on budget work in progress.
See Separate Production / Operations / Engineering Report
CEC HQ Building Repairs
The CEC elevator and shaft are in worse condition than anticipated, and had to be completely disassembled and disabled mechanically and electrically per the State elevator inspector. The work is partially complete, but the concrete floor (sagging and perched to collapse) still needs to be removed and the roof secured for winter. The engineering assessment is in progress and will advise the condition/value of the building. This will be a budget consideration for 2017.
I used personal leave and attended the Alaska Municipal League conference in Anchorage this week. I will be spending Thanksgiving weekend in Anchorage and attending a regional economic development workshop with the Native Village of Eyak, The Eyak Corporation, and the Chugach Alaska Corporation in Anchorage on 11/29/16. Topics will include energy efficiency upgrades, hub zone development, Crater Lake Water and Power Project, regional biomass opportunities, and other projects of interest to CEC and Cordova.
CEO’s Verbal Report
Koplin said the power point is all budget related and can be reviewed during the New Business Budget item.
MANAGER OF PRODUCTION AND DISTRIBUTION REPORT
Orca Power Plant
- Engine 4 Day fuel tank had a level float failure and did not allow the tank to replenish. This caused a system wide outage on 11/03/2016 at approx. 01:20 AM. After troubleshooting the issue the plant was brought back
- Floats and connections are cleaned replaced for unit 4 Day tank. Monitored for several cycles and operating
- Overhead Crane has been inspected and certified
- Unit 6, CAT 3516, is in the process of being repaired with in-house staff. Oil pump has been repaired and replaced on unit 6. Back in
- Our oil spill from Unit 6 failure has been mitigated. Thanks to the work of our entire staff and the assistance of the City vacuum truck, the contaminated soil is in secure storage until we can dispose of it. The affected area has been inspected and no sheen is
Power Creek Hydro Plant
- The discharge gate for power creek hydro has been upgraded and replaced. The mounting area of the gate has been upgraded and has a better seal. This should prevent leakage and spilling of resource.
- New electric actuator has been installed to operate this gate with less
- Lines have been replaced for the hydraulics on the penstock gate
- Overhead Crane has been inspected and certified
Humpback Creek Hydro Plant
- Overhead Crane has been inspected and certified
- An outage occurred on Friday, October 21, 2016 at approximately 06:15 AM. The cause was loss of generation due to an oil leak on one of the diesel generators at Orca Diesel Plant. This event caused the loss of the 13 mi. feeder. All power was restored by 06:35 AM and spill response continued over the course of the rest of the day. Alaska Department of Environmental Correction (ADEC) was notified at 07:29
- An outage occurred on Thursday, November 03, 2016 at approximately 01:17 AM. The cause was loss of generation due to a faulty low fuel float in the day tank of a generator. At the time of the initial outage the single generator was carrying the system and once it ran out of fuel the feeders at Eyak Substation opened on under-frequency trips. Once the under- frequency load shed scheme started frequency was never arrested due to the lack of online generation. During this time other engines attempted to close into the system, but due to the decaying frequency they were never able to synch leading to a complete system collapse. The full system was restored to full power by 2:06 AM. The low fuel float was cleaned and fully tested before being put back into
- The line crew has been at work straightening streetlight poles and addressing burnt out and “day-burner” streetlights. Street light maintenance is
- Hot Sticks, overhead crane, bucket truck and digger derrick truck have been inspected and certified.
- Assisted with old discharge gate removal at Power
- A NECA temp from IBEW (Randall) is filling in while we are
- New temporary service installed for a private
- New three-phase cable is in service along the Harbor Loop and Nicholoff Way. This was a capital work plan
- There has been work done reprograming the recloser controls (relay) that oversee the reclosers on the system feeders at Eyak
- The relay overseeing the main circuit breaker at Humpback Creek has been reprogramed to better coordinate during ground faults on the system. The new settings should allow for the reclosers at Eyak Substation to clear faults before the relay at HBC
- Further work continued with the City of Cordova’s engineering contractor on a new electric service for the Eyak Lake Water Treatment Plant including the installation of an outside disconnect.
CEC Fleet Vehicles – November 2016 Vehicle Maintenance work
Unit #36: (Clay’s Equinox) Took Unit out of service because when idling the engine would die while moving or parking. The Driver’s side window would go down but had a hard time going back up. Hooked up the OBD Computer and had a code of “Bad Camshaft Positioning Sensor”. Ordered and Replaced the Cam Shaft Positioning Sensor. Ordered and replaced the window regulator in the driver side door, fixed the Driver side rear tire that kept going flat.
After about a week operation the unit was still dying. Ordered the Camshaft Pos. Regulator and am going to try replacing it to see if this will work
Unit #19: (Bucket Truck) Operator said when he went to shift the truck that he heard what he thought was an airline blowing out. When I started the truck I could hear the air coming out from under the truck found an Air Regulator blowing air from the bottom of the tank. As you can see in the picture it was quite gummed up.
After cleaning the valve out and putting it back together the valve quit leaking. There was still a leak under the dash.
Took the Dash Air valve OUT and found no leaks on valve. After tracing the airline, found an air operation switch to the Parking Brake light leaking through the switch. Did some research on the switch, and they said it was common for this switch to leak after they get used a lot.
Removed the airline and pulled the switch to confirm the leak and to get a Part Number. Part is on order through Alaska Sales & Service.
While Unit #19 was down for maintenance I went ahead he and changed the oil and Filters. Added extended Life coolant to clear the low Coolant light that was on the dash.
Unit #10: Changed the Oil and Filter. Greased up all the zerk fitting on the Steering Linkages. Fixed Blown Head Lamp on the Passenger Side, Replaced the burnt out turn signal bulb on the front passenger side. Changed out all tires to winter studded tires.
Unit #28: Sanded down both of the rear tire rims on the Backhoe and primed and painted back to Cat Yellow. Took the old rear spare tires and removed the old tires from the rims. Sanded rims down and primed and painted them back to Cat Yellow. Mounted new tires on the rims using the new tire spoons.
Covel reviewed the following reports:
- Statement of Operations for October
- Cash Flow Analysis for October
- Revenue Report for October
- Cash Disbursements for October
- Bankcard Services Summary of Charges Statement 10/17/16
- Generation and Sales Statistics
Land Lease Agreement Between K&H LLC and Cordova Electric Cooperative – Faulkner moved and Pegau seconded to approve the Land Lease Agreement Between K&H LLC and Cordova Electric Cooperative as presented. Discussion.
Cooper moved to lay the motion on the table until the next meeting, seconded by Faulkner. Voice vote: 3 yea – 1 nay. Motion carried.
Appoint Nominating Committee – It was moved by Faulkner, seconded by Cooper, to approve the Nominating Committee as listed:
- Victoria Baker
- Jeff Hamberger
- Gladah Hicks
- Bryan Mills
- Bootslyn Roemhildt
- Dede Srb
Voice vote: Unanimous. Motion carried.
Policy 15G – Records Management Policy – First Reading – Covel said periodically this policy is reviewed and updated. The Retention Schedule was changed for this reading. The Board asked staff to edit/update the main portion of the Policy for the next reading.
Policy 35I – Management Wage and Salary Plan – First Reading – Koplin said the vacation and sick leave accrual and holidays sections were edited to conform to the new Collective Bargaining Agreement.
2017 Annual Work Plan – Koplin distributed the 2017 Annual Work Plan (Annual Operating Plan – 2017) and reviewed items listed in the Plan for budgeting purposes.
2017 Draft Budget Presentation – Koplin distributed and reviewed the 2017 Budget Revenue Projections. A discussion ensued.
CEO Travel – Noted
Capital Credits Total – Koplin explained the Capital Credits Grand Total sheet.
NRECA Annual Meeting, San Diego, CA, February 23-March 1, 2017 – Board directed staff to include this on the December Agenda.
Special Meeting for Budget Presentation? – Directors scheduled a special meeting for December 14, 2016 for the Budget presentation.
- Policy #33C—Assistance to Other Entities
- Policy #34C Changes in Tariff Rates, Rules and Regulations
- Article XII—Miscellaneous
Christmas Decorating Contest (Date for judging) – the Board scheduled a date for judging the Christmas Decorations.
- Board Site Visits and Infrastructure Assessment
- Bylaw Committee to meet. Submit any proposed changes by December 15, 2016 for approval at the December Board Meeting
BOARD PENDING EVENTS CALENDAR
SUMMARY OF BOARD DIRECTION TO CEO
- Have counsel review the Land Lease Agreement between K&H LLC and CEC
- Email past Rate Study to Directors
- ACEP/Sandia/CEC/DOE Electrical Energy Storage project – send update info to Board
CEO Negotiation Process
It was moved by Faulkner and seconded by Cooper to go into executive session at 8:20 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. Staff was excused and Executive Session included Directors only.
Board reconvened at 8:50 pm. No action was taken. BOARD COMMENTS
It was moved by Faulkner and seconded by Cooper to adjourn at 8:50pm.