CORDOVA ELECTRIC COOPERATIVE, INC.
REGULAR BOARD MEETING
The Regular Meeting of the Board of Directors of Cordova Electric Cooperative, Inc. was called to order at 6:10 p.m. by Chairman Pegau. Members present were Cook, Faulkner, Phillips, Srb and Johnson. Director Cooper participated via teleconference. Also present were CEO Koplin, Manager of Generation and Distribution Newlun (Recorder), and Project & Technology Coordinator Kuntz.
Member Leif Stavig was present and had no comments.
APPROVAL OF AGENDA
Cooper moved and Phillips seconded to approve the agenda as presented. Voice vote:
Unanimous. Motion carried.
Phillips moved and Srb seconded to approve the consent agenda that includes the following:
- a) Minutes of November 28, 2018 Board Meeting
- b) Estate Retirement
Voice vote: Unanimous. Motion carried.
CEO Written Report
CEO Travel: I attended the Department of Energy (DOE) Microgrid Research & Development Program Meeting in Seattle on December 11th and 12th for future CEC project opportunities. In the evenings I worked with our RADIANCE project manager from Idaho National Laboratory, Mayank Panwar, to review the RADIANCE go / no-go considerations for his presentation to DOE. The first quarter of 2019, I plan to have Scott Newlun attend the APA legislative session in Juneau January 30, 31 and represent CEC operational goals. I can work directly with our legislators to arrange meetings while you are there. I plan to attend and present at DistribuTECH in New Orleans February 6,7 and meet with Mitsubishi regarding their heat pump product lines. My next Energy Advisory Committee Meeting is on March 13, 14 in Washington, DC, which I plan to precede with a presentation at NRECA’s TECHAdvantage on March 11th and 12th in Florida with a week’s vacation beforehand – I will be covering R/T airfare to Florida and lodging/expenses for personal time except the 4 days for NRECA TECHAdvantage and EAC meetings (EAC will pay for 2 of those days).
Interest Rates: The variable interest rate continues to climb and is now at 4.26%. Short terms have dropped, with the 40year at 4.27%, only .01% below the variable, so there is little to gain by fixing short, and rates are signaling a recession. We will continue to monitor rates but are not inclined to fix at this time.
Crater Lake Update: We expect to have geotechnical reports in early 2019, our geologist is somewhat backlogged with earthquake geotechnical work keeping them unexpectedly busy.
Hydro Maintenance and Project work: We expect to have final reports for 2018 work soon and will begin detailed budgeting and scheduling for the 2019 work plan after budget approval.
RADIANCE Update: I am preparing a go/no-go PowerPoint for Friday’s meeting and will circulate it by tomorrow afternoon.
Electric Energy Storage (EES) Project Update:
Work has slowed down over the holidays, I am preparing orders for the structural steel and pilings so that we can proceed with work this winter/spring for the site preparation.
Power Creek Road Repairs: I am following up with Alaska Department of Transportation to get a status and budget update.
I am preparing a headquarters maintenance plan and should have it completed by meeting time. We did not specifically include this in the budget, but should be able to effect piping repairs and, depending upon revenues this summer, another section of siding. The final budget
ORCA Power Plant
- Repair fuel line leak on engine 3.
- One of our Mechanics is at CAT training for Master Mechanics on 3500 series engines.
- File a Full Compliance Evaluation (FCE) with Alaska DEC for period between 1/1/17- 09/30/18
- Have the Fuel metering page set up for additive testing.
- Network mapping for the system.
- Started an additive test but shut it down because of warm wet weather and full hydro.
- Troubleshooting and programming new voltage regulator on engine 6.
Power Creek Hydro Plant
- Assist Carlos in removing plywood decking from bridge before snow fall.
- Road is in bad shape been washed out most of the month.
- Connect Fiber Between Power Creek and Eyak Distribution Service Center (DSC)
- Replace head sensors at the intake.
- Emergency Action Plan (EAP) Exemption letter filed.
Humpback Creek Hydro Plant
- Clean up of lumber and equipment from thrust block work.
- New Moxa switch installed for comms.
- EAP Exemption letter filed.
CEC Fleet Vehicles
- General boat, vehicle, and tool maintenance
- Some light fixtures and plumbing at Illanka and Office have been replaced/repaired.
- New door lockset at ORCA Plant.
- Replace bathroom fan at ORCA Plant.
- Replace heaters in the oil separation building.
- Replace heaters in the CAT van.
- Have Kiwi go through our boilers at ORCA Plant.
- Several new service requests.
- Work on design for DOT deep culvert job.
- Decorate tree and Repair Street Lights on Main Street.
- Send some maps to the City for use in their grant package.
- Get set up in the new DOT software for Airport Badges.
- Layout the Battery Energy Storage System (BESS) foot print at the substation.
CEO Verbal Report
Koplin and Newlun reviewed 2018 in a Power Point presentation. Discussion on Radiance project and the mechanisms used for the decision to continue with the project or not. Discussion on other projects in progress.
Koplin reviewed the following reports:
- Financial Report ending 11/30/18
- Revenue Report for November
- Cash Flow Analysis for November
- Cash Disbursements for November
- Bankcard Statement Summary 10/17/18 & 11/17/18
- Purchase Order Report
- Generation and Sales Statistics
Approval for a Purchase Order to McMillan Jacobs & Associates for $550,000 – Phillips moved and Srb seconded to approve the amount of $550,000 to replace the Power Creek dam. Discussion. Phillips moved and Srb seconded to amend the motion to the amount of $453,000 to replace the Power Creek dam. Discussion. Voice vote on the amendment to approve $453,000 to replace the Power Creek dam: 0 yea, 7 nay. Motion failed. Phillips moved and Srb seconded to amend the motion to approve the amount of $500,000 to replace the Power Creek dam, which is in the budget. Discussion. Voice vote on the amendment to approve the amount $500,000 to replace the Power Creek dam, which is in the budget. 6 yea, 1 nay (Cooper). Motion passed. Voice vote on the main motion to approve $550,000 to replace the Power Creek dam: 1 yea (Cooper), 6 nay. Motion failed.
Approval to Amend Purchase Order #2080 to Electric Power Systems to total $77,000 – Phillips moved and Faulkner seconded to approve modification of Purchase Order #2080 to Electric Power Systems from $65,000 to $77,000. Discussion. Voice vote: Unanimous. Motion Carried
Purchase Order #2129 to Professional Computer Systems for $40,108 – Cooper moved and Cook seconded to approve Purchase Order #2129 to Professional Computer Solutions, LLC in the amount of $40,108. Discussion. Voice vote: Unanimous. Motion carried.
Moss Adams LLP Audit Engagement Letter & Professional Services Agreement – Johnson moved and Srb seconded to approve the Engagement Letter and Professional Services Agreement with Moss Adams LLP as presented. Fees for audit preparation are estimated to be $25,000 plus out of pocket expenses at cost. Discussion. Voice vote: Unanimous. Motion carried.
Bylaw Committee Recommendation – Cooper said she spoke with Counsel regarding changes to the Bylaws, explained the process, and the decision of the Committee is to keep the Bylaws as is. Discussion.
Radiance Project – Johnson moved and Phillips seconded to proceed with year two of the Radiance Project as presented. Discussion. Voice vote: Unanimous. Motion carried.
CEC Storage Space for Ducks Unlimited – Koplin said this would be considered a donation and is asking for Board approval. Koplin explained the space location, a closet in the lower level, that is available. Discussion. Faulkner moved and Johnson seconded to provide storage space to Ducks Unlimited on an annual basis. Voice vote: Unanimous. Motion carried.
2019 Budget – Faulkner moved and Johnson seconded to approve the 2019 budget as presented on December 27, 2018. Discussion. Phillips moved and Cooper seconded to postpone the Budget item to a special meeting scheduled for a date before January 10, 2019. Voice vote: Unanimous. Motion carried. Discussion. Board scheduled the meeting for Sunday, January 6, 2019 at 3:00 p.m.
CEO Travel – Koplin reviewed his travel plans for February and March.
Headquarter Maintenance Plan – Koplin discussed his plan for headquarter maintenance. Discussion.
NRECA Annual Meeting, Orlando, FL, March 10-13, 2019 – Discussion. No directors will be attending.
- Policy #21E – Employees Expense Reimbursement – noted
- Policy #22C – Cooperative-Owned Transportation Equipment- noted
- 2019 Annual Meeting – Monday, March 25, 2019
- Board Self-Evaluation & Development – January
- CEO Evaluation – by March 31
BOARD PENDING EVENTS CALENDAR – Noted
SUMMARY OF BOARD DIRECTION TO CEO
- Close out Board obligations on Report of Board Approved Purchases
- Budget postponed to a special meeting on January 6, 2019 at 3:00 p.m.
- Check email address used for Director Phillips
- Include Strategic Planning to the January agenda
Cooper – No comments
Faulkner – Good discussions. Board is doing will with fiduciary responsibilities. Good job everyone.
Srb – You have a hard job Clay, switching directions and working/juggling the various projects.
Cook – Agrees with Srb and said all staff has had a really tough year and it doesn’t look anything will be lightening up for a while. No more Friday evening meetings.
Phillips – Agrees, no more Friday evening meetings. Thanks to staff for all they do.
Johnson – no comment
Pegau – Appreciates all the hard work of staff. The bigger the decision, the earlier the information is provided, the easier it is.
Phillips moved and Johnson seconded to adjourn the meeting at 9:00 p.m.
Date Approved Secretary/Treasurer