CORDOVA ELECTRIC COOPERATIVE, INC.
REGULAR BOARD MEETING
April 24, 2019
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, Faulkner, Srb, Johnson and Ranney. Director Cooper was absent. Also present were CEO Koplin, Manager of Administration and Finance Merritt, Executive Assistant/HR Bailer (Recorder), and Project and Technology Coordinator Kuntz.
APPROVAL OF AGENDA
Cook moved and Johnson seconded to approve the agenda as presented. Voice vote: Unanimous. Motion carried.
Johnson moved and Cook seconded to approve the consent agenda that includes the following:
- a) Minutes of March 27, 2019 Board Meeting
- b) Estate Payments
- c) Approve New Members (1/18/19 – 3/31/19)
Voice vote: Unanimous. Motion carried.
CEO Written Report
CEO Travel: I do not have any travel scheduled until the June 19th and 20th Department of Energy Electricity Advisory Committee meeting in Washington, D.C.
Crater Lake Update and Go/No Go: McMillen – Jacobs has received the draft geotechnical report from Shannon and Wilson. We hope to have a final in your hands by the end of this month if not before the Board meeting. I moved my Crater Lake presentation on the Tuesday evening lecture series up from April 23 to May 7 due to work load and a desire to have the CEC Board see the information and get staff thoughts before making them generally public.
CTC Collaboration: The City Council considers the CTC offer on the old COHO building tonight, and theirs was the only proposal. Pending the outcome, CEC may discuss options for co-locating some or all of our office staff there. I would appreciate Board feedback. We will also be discussing fiber optic ownership and maintenance between the two Cooperatives.
Interest Rates: Stable (down slightly) and the forecast is for no increase this year.
RADIANCE Update: Work is proceeding on schedule. The next technical interchange meeting is May 9th and 10th in Cordova.
Battery Electric Energy Storage (BESS) Project Update:
The steel pilings have been driven and myriad design and integration details, commission scheduling and logistics are all converging as the cold commissioning scheduled for May 15th and 16th draws near. This is consuming approximately 75% of my working hours, likely through mid-June, as commercial, technical, and construction needs proceed. This agenda includes my forecasted expenses for Electrical Power Systems support work (reimbursed by the National Laboratories) through commissioning. There will also be some field welding and fabrication, and crane work to site and secure the equipment. CEC crews will begin installation of grounding grid, conduits, pads and vaults for the new equipment. Work through commissioning will get the battery operational and tied to the CEC grid. Integration work will likely follow and will get the battery operating in an efficient and effective manner with the CEC system. I will have a budget update for the Board meeting. All three of these requisitions are within budget but take us right up to the full project budget. Some of this work was originally anticipated to be performed by CEC employees that will likely not have the resources to commit to this project during the May/June construction window.
Power Creek Road Repairs: Scheduled for this summer.
Tariff Revisions: Staff is working on incorporating additional recommendations for tariff revisions and will work with CEC counsel to prepare the billing error revisions for public hearing and adoption in May or June.
Power Quality Report: CEC Policy requires the CEO to report any Power Quality issues in the CEC system. It will likely be July before I can prepare a summary, and due to other project and budget priorities, comprehensive time error correction upgrades should wait until late 2019 or 2020 or as opportunity offers.
Solar Energy Update: CEC will be installing some solar panels this summer. EPC Solar presentation is rescheduled for May.
CEO Verbal Report
Koplin showed a power point and discussed CEC’s strategic vision (ten-year goal (2025)) and the Battery Energy Storage project/budget.
GENERATION & DISTRIBUTION REPORT
Discussion about various items on the report.
Merritt reviewed the following reports and answered questions.
- Financial Reports 3/31/19
- Revenue Report for March
- Cash Flow Analysis for March
- Cash Disbursements for March
- Bankcard Statement Summary for 2/17/19
- Purchase Order Report
- Generation and Sales Statistics
Appoint Bylaw Committee – Pegau appointed Srb, Johnson and Ranney to the Bylaw Committee. Upon consultation, the officers elected Srb as Chair of the Bylaw Committee.
Appoint Board of Adjustments – Pegau appointed Cook, Faulkner and Cooper to the Board of Adjustments.
Purchase Order #2135 to CAT Financial Services Corporation for $126,020 (Budgeted) – Pegau mentioned this was on the March agenda and the Board postponed it until the April Board meeting. Srb moved and Johnson seconded to approve Purchase Order #2135 to CAT Financial Services Corporation for $126,020. Discussion. Voice vote: Unanimous.
Purchase Order #2151 to Wilson Construction Inc. for $29,880 – Cook moved and Srb seconded to approve Purchase Order #2151 to Wilson Construction, Inc. in the amount of $29,880. Discussion. Voice vote: Unanimous. Motion carried.
Purchase Order #2155 to Electric Power Systems for $100,000 – Johnson moved and Cook seconded to approve Purchase Order #2155 to Electric Power Systems for $100,000 for the Battery Energy Storage System Field Engineering and Construction Support. Discussion. Voice vote: Unanimous. Motion carried.
Purchase Order #2156 to Electric Power Systems for $88,000 – Srb moved and Cook seconded to approve Purchase Order #2156 to Electric Power Systems for $88,000 for the Battery Energy Storage System Field Wiring and Controls. Voice vote: Unanimous. Motion carried.
Purchase Order #2157 to Electric Power Systems for $100,000 – Srb moved and Johnson seconded to approve Purchase Order #2157 to Electric Power Systems for $100,000 for SCADA Integration and On-Site Commissioning. Discussion. Voice vote: Unanimous. Motion carried.
Rate Analysis – Merritt conducted a Rate Analysis power point presentation and a discussion ensued. Board requested staff to email them more information and add this item to the May Board Agenda.
CEO Travel – noted.
Quarterly Board Self-Evaluation Review – Board reviewed their Self-Evaluation.
- Policy #1 – Functions of the Board of Directors
- Policy #29B – Idle Services and/or Facilities
- Policy #30C – Reimbursement for Damages to Cooperative Property
- Invite Eyak Preservation Council to present Solar report
- Audit Presentation Monday, April 29, 2019
- RADIANCE meeting May 9-10, 2019 in Cordova at City Center
- Board Training with Counsel – May 22, 2019 Board meeting
- Proposed Tariff Revisions
- Review Board Evaluation Quarterly (January/April/July/October)
BOARD PENDING EVENTS CALENDAR
SUMMARY OF BOARD DIRECTION TO CEO
- Share Eyak Preservation Council Solar Report with the Board and invite them to present the project at a Board meeting
- Email the Board a list of construction projects and information regarding the rate analysis.
- Add Conflict of Interest Policy to May agenda
Faulkner said there was lots of good information and welcomed Ranney to the Board. She said directors that participate in a training class should bring their training books to the Board so others can review them. Good meeting.
Srb thanked staff for putting everything together. She looks forward to the Rate Analysis.
Johnson thanked staff for their work on the Rate Analysis.
Cook welcomed Ranney to the Board.
Ranney thanked staff for the work that goes into the agenda packet. He said he has a lot to learn.
Pegau talked about solar power and a discussion ensued.
Johnson moved to go into Executive Session at 8:50 p.m. to consider matters, the immediate knowledge of which would clearly have an adverse effect on the finances of the Cooperative, seconded by Srb. Staff, with the exception of the CEO, was excused.
At 9:00 p.m. the Board came out of Executive Session where they discussed financial matters and the CEO Contract. No action was taken.
Johnson moved and Srb seconded to adjourn at 9:01p.m.
Date Approved Secretary/Treasurer