CORDOVA ELECTRIC COOPERATIVE, INC.
REGULAR BOARD MEETING
August 29, 2018
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 Cook, Cooper, Faulkner, Phillips, Srb and Johnson. Also present were CEO Koplin, Manager of Administration & Finance Merritt, Executive Assistant/HR Coordinator Bailer (Recorder), and Project & Technology Coordinator Kuntz.
APPROVAL OF AGENDA
Phillips moved and Srb seconded to approve the agenda as presented.
Voice vote: Unanimous. Motion carried.
Phillips moved and Cooper seconded to approve the consent agenda that includes the following:
- a) Minutes of July 25, 2018 Board Meeting
- b) Approve New Members – 4/01/18 – 6/30/18
Voice vote: Unanimous. Motion carried.
CEO Written Report
Human Resources: A production apprentice has been hired.
Tariff Revision: The approved tariff revision is being administratively adopted (home loan agreements for extension payment plans, etc.).
Interest Rates: Variable rates dropped slightly, short term rates continue to increase, while long term rates are dropping slightly over the past few weeks. Short term rates are well above the 7-year average and trending higher while the long term are well below the 7-year average and trending lower.
EES Project: As mentioned in my weekly report, we received an additional $325,000 in Department of Energy, Office of Electricity (DOE/OE) funding. The groundbreaking ceremony is being considered for June of 2019 and a ribbon-cutting rather than ground breaking to accommodate Senator Murkowski’s schedule and other VIP attendees.
RADIANCE Project: The RADIANCE project is progressing well. The additional Department of Energy Funding for the battery energy storage system freed up additional funding in the RADIANCE project, from which we are considering an advanced metering infrastructure (AMI) and electrical vehicle pilot.
CEO Travel: I attended the Alaska Power Association (APA) Annual meeting in Fairbanks. I presented on battery energy storage and the RADIANCE project and attended meetings and workshops. One item suggested by our counsel Andy Leman was to circulate the Cooperative Finance Corporation (CFC) report on governance – many cooperatives are coming under fire for over-compensating themselves at the member expense including former board members and staff – South Carolina Cooperatives in particular.
Power Creek Inflatable Dam Replacement: Procurement and repairs are in progress
Solar Grant Application: The final proposal has been submitted, a copy is in the drop box.
Power Creek Road Repairs Match: I will be working on this in August/September.
Generation/Distribution Departments Monthly Report July – August 2018
ORCA Power Plant
- Remove and refurbish generator end on engine 6 (Hayden Electric Motors Inc.)
- Semiannual air quality Facility Operating Report (FOR) has been submitted.
- New Apprentice Maintenance Operator has been hired and started work on the 13th.
- Working on electric boiler with Electric Power Systems.
- Starter on Engine 7 failed and we replaced top starter with a rebuilt one out of inventory.
- Engine 3 overheated and blew a coolant hose, had to be inspected by the Marine Services Inc. (MSI) service technician.
- Major coolant cleanup and electrical components replaced due to coolant contamination.
Power Creek Hydro Plant
- McMillan Jacobs have replied with new dam recommendations.
- We are moving ahead with the tunnel inspection and bridge area decking. Scheduled for September 24th.
Humpback Creek Hydro Plant
- Unit H2 in service with programming adjustment, new hydraulic ram is needed and being sourced.
- Routine maintenance check at the plant and forebay.
- Brush clearing and inspection of penstock between thrust block 6 and thrust block 10 are scheduled for September 24th
- Rerouted the power supply in the forebay and installed a new wall mounted splice box.
CEC Fleet Vehicles
- Unit 34 has had a new front axle and driver side sway bar has been replaced.
- Unit 30 repaired break line & power steering; the bed on the flatbed is rusted beyond repair.
- Unit 28, Backhoe; alternator and turbo replaced.
- Unit 39 recall work has been completed.
- Some light fixtures at Illanka have been replaced.
- Faucet has been repaired at Illanka.
- Several new service requests.
- New service installation at 6.5 mile.
- New service installation at 5.5 mile.
- Anixter has been here and a meter audit has been completed.
- New high resolution KYZ metering has been installed at two locations per customer project.
- Light has been relocated on Adams Street.
- Meridio has made their second trip for training with new software.
- Working on installing fiber at Power Creek Hydro Project.
CEO Verbal Report
A power point presentation and discussion ensued regarding the generators, Power Creek Hydroelectric project tunnel inspection, and Humpback Creek Hydroelectric project pipe supports.
Merritt reviewed the following reports:
- Financial Report 7/30/18
- Revenue Report for July
- Cash Flow Analysis for July
- Cash Disbursements for July
- Generation and Sales Statistics
Approval of a Purchase Order and Contract to Carlos Martin for $15,000 – Phillips moved and Johnson seconded to approve a sole source contract and Purchase Order to Carlos Martin for work at the Power Creek and Humpback Creek Hydroelectric sites in the amount of $15,000. Discussion. Faulkner moved and Johnson seconded to amend the motion to remove the words “and Humpback Creek” from the motion. Voice vote on the amendment: Unanimous. Motion carried. Voice vote on the main motion as amended: Unanimous. Motion carried.
Purchase Order #2099 to Extreme Access Inc. for $40,000 – Cooper moved and Johnson seconded to approve Purchase Order #2099 to Extreme Access in the amount of $40,000 for Power Creek and Humpback Creek Hydroelectric inspection work. Discussion. Voice vote: Unanimous. Motion carried.
Purchase Order #2030 to Extreme Access Inc. for $40,000 – Johnson moved and Srb seconded to approve adjusting Purchase Order #2030 to Extreme Access to the amount of $42,925. Discussion. Voice vote: Unanimous. Motion carried.
Purchase Order #2100 to ARECA Insurance Exchange for $323,859 – Johnson moved and Phillips seconded to approve the cancellation of the current ARECA insurance policy and purchase of the rewritten ARECA insurance policy for the not to exceed amount of $323,859. Discussion. Voice vote: Unanimous. Motion carried.
Policy #68 – Recordings of Board Meetings – Phillips moved and Cook seconded to adopt Policy #68 as presented. Voice vote: Unanimous. Motion carried.
Resolution 18-03 Authorizing a General Retirement of Capital Credits – Cooper moved and Phillips seconded to approve Resolution 18-03 Authorizing a General Retirement of Capital Credits as written.
A RESOLUTION AUTHORIZING A GENERAL RETIREMENT OF CAPITAL CREDITS
WHEREAS, the Cordova Electric Cooperative, Inc., Board of Directors has determined that the financial condition of the Cooperative will not be impaired by partially retiring the capital credited to members’ accounts in accordance with the CEC Bylaws;
THEREFORE, BE IT RESOLVED the Cordova Electric Cooperative, Inc., Board of Directors, approves the retirement of capital credits allocated to patrons for the following years(s): 1979, 1980, 2001, and 15.9% of 2016.
BE IT FURTHER RESOLVED, that the total of the above retirements do not exceed One hundred sixty-five thousand, four hundred seventy-four Dollars ($165,474.00).
Discussion. Roll call vote: Unanimous. Motion carried
Resolution 18-04 Regarding Opposition to Proposition 1 – Johnson moved and Phillips seconded to approve Resolution 18-04 Regarding Opposition to Proposal 1 as written.
A RESOLUTION OPPOSING STATE OF ALASKA ELECTION BALLOT INITIATIVE 1
WHEREAS, the community of Cordova and the Cordova Electric Cooperative place high value on salmon and other aquatic resources for their livelihood and financial stability; and
WHEREAS, it is the strategic goal of Cordova Electric Cooperative to eliminate dependence upon diesel fuel generation for producing energy for Cordova; and
WHEREAS, development of renewable energy projects to replace diesel fuel generation generally requires Alaska Department of Fish and Game habitat permitting; and
WHEREAS, Title V of the Alaska Municipal Code is a time-proven, predictable, and effective means of assuring the protection of aquatic resources in the State of Alaska, allowing the responsible development of energy and other community projects; and
WHEREAS, State of Alaska Election Ballot Proposition 1 seeks to replace, repeal, and modify existing habitat protections that have proven adequate with unnecessary, unclear, and unproven habitat protections that are likely to result in unintended consequences;
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of Cordova Electric Cooperative, Inc. oppose Ballot Proposition 1 in the 2018 State of Alaska regular Election.
Discussion. Roll call vote: 1 yea (Cook), 6 Nay. Motion failed.
Policy #66 – Capital Credits – Johnson moved and Faulkner seconded to approve Policy #66, Capital Credits, as amended. Discussion. Phillips moved and Srb seconded to refer Policy 66B back to staff for revisions. Voice vote: Unanimous. Motion carried.
Audit Committee Recommendation for Audit Contract – Johnson moved and Phillips seconded to accept the recommendation of the Audit Committee to award the audit to Moss Adams LLC per their proposal. Discussion. Voice vote: Unanimous. Motion carried.
Nominating Committee Process for New Directors – Cook explained past Committees not being able to get members to run for a Board seat. Discussion.
CEO Travel – Noted
Board Purchase Order Report – Discussion. Board would like this report to show budgeted items and to be added to the agenda each month with the Administrative Reports.
CoBank Sharing Success Program – is advertised and requests are due September 6, 2018. Discussion.
CFC Task Force in Governance – Noted
July 25, 2018 letter from The Secretary of Energy to Mr. Clay Koplin – Noted
Thank you note from Scholarship recipient – Noted
Donation of rental space in headquarters building – Koplin mentioned this was a request from the Prince William Sound Community College to start a nursing program, however, he was contacted today that it will not happen immediately, but possibly in the future. Discussion.
- Policy #12J –- noted
- Policy #13B – noted
- Board Credentialed Cooperative Director training October 16-17, 2018
BOARD PENDING EVENTS CALENDAR – Noted
SUMMARY OF BOARD DIRECTION TO CEO
- Add Purchase Order report to monthly agendas
- Email Board the minimum CoBank contribution amount
Faulkner – Good meeting
Srb – Thank you for putting packet together
Cooper – Thank you for another great meeting. Thank you for input and explanations on the Capital Credits Policy, and congratulations to Koplin on his appointment to the Electricity Advisory Committee
Cook – Said the Alaska Power Association (APA) meeting in Fairbanks was good and that the presentations are on the APA website. He mentioned Koplin had a good presentation and that he toured the Golden Valley Electric Association power plants and battery energy storage system. Cook mentioned there were no contributions from CEC to the ACRE/CARE committee, that it is for a good cause, that contributions are noticed when lobbying in Juneau, and that he will give Directors the information and forms. Cook said this was a good meeting and thanked staff.
Johnson – Congratulated Koplin for his appointment and thanked Merritt for her report.
Phillips – Good meeting. Phillips apologized for backing out of attending the APA meeting but other personal business prevented him from attending. He thanked staff for a great meeting.
Pegau – Thanked everyone for their patience and participation and how well things are prepared.
Phillips moved and Johnson seconded to adjourn the meeting at 8:25 p.m.