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 6:02 p.m. by Vice Chair Cook. Members present were Cooper, Faulkner and Phillips. Director Pegau, Little and Wooden were absent. Also present were Manager of Generation & Distribution Newlun and Executive Assistant/HR Coordinator Bailer (Recorder). CEO Koplin participated via teleconference.
No members were present.
APPROVAL OF AGENDA
Cooper moved and Faulkner seconded to approve the agenda as presented.
Voice vote: Unanimous. Motion carried.
It was moved by Cooper and seconded by Faulkner to approve the consent agenda that includes the following:
a) Minutes of December 27, 2017 Board Meeting
b) Minutes of January 24, 2018 Board Meeting
c) Related Party Check – Fireweed Business Solutions LLC, Invoice #1126 for $73.50
Voice vote: Unanimous. Motion carried.
CEO Written Report
It has been very, very busy this month as we prepare to tackle the aggressive 2018 Work Plan. Much of the month was spent evaluating various aspects of our business as we prepare to elevate our mostly manual operations work processes to new software platforms that will interface and communicate with power production (SCADA, or Supervisory, Control, And Data Acquisition system) automation software and front office (PCS) software to tie it all together. We have also been preparing for project work including hydro plants maintenance, Orca boiler upgrade, RADIANCE and EES projects as outlined below. The resignation, retirement, and relocation of three CEC employees and extended absence of others this spring for various reasons has added pressure to these projects. We have utilized a combination of contracting, internship, and CEC resources to help assist with the work load and move us toward completion of these important projects.
Employee Loan: CEC policy prohibits loans to employees except for exceptional circumstances. I have determined that an employee has encountered exceptional circumstances beyond their control and have approved administrative leave and an advance of under $2,000 for a short duration to assist them through their difficult time. The policy requires me to report this to the CEC Board so I have included it here for your information.
Interest Rates: Interest rates have continued to rise very slowly on the short-term end, while 15-year and 20-year rates are holding almost flat.
RADIANCE Project: CEC staff have been evaluating various software packages to help automate and streamline the process of designing, building, and adding CEC system improvements and replacements to our maps and asset records for accounting. This is the “enterprise software” referred to last month. We have also been assessing various Automated Metering Infrastructure (AMI) platforms to add efficiency and customer service options. The radio systems that communicate with AMI may serve as an alternative or backup to our automation (SCADA) system communications. We realized that all of these vendors will be at the NRECA Tech Advantage with their hardware and demonstrations in Nashville February 26th-28th and we decided to attend, given the magnitude of the investments. I will call in to the Board meeting but may be a half hour late after landing in Seattle on the way home.
EES Project On Friday, February 16th, we hosted a webinar to describe CEC’s needs from a grid scale battery and explained the details of the Request for Proposals issued on Monday, February 12th to vendors. Questions about the RFP were due today, and CEC will be circulating a response to the questions early next week. Proposals are due March 5th and CEC will evaluate them for award.
EPS Purchase Order: To help manage the engineering, installation, and update of CEC engineering records to move CEC to these new platforms to improve efficiency and services, I have submitted a preliminary purchase order to Electric Power Systems, CECs long time engineering and automation system firm, for general services related to RADIANCE and the Electric Energy Storage project. When their owner travelled to Cordova to meet with CEC staff and look at the various projects and resources available on the CEC side, we also reviewed the Orca boiler upgrade project and may be recommending EPS for this project due to their successes on similar projects and proximity for our other work.
John Magee Purchase Order: In 2016, John Magee evaluated Humpback Creek and Power Creek pipelines and supports for ongoing maintenance work. As we prepare to perform maintenance on both Power Creek and Humpback Creek, we will need engineering project support including site visit with a qualified contractor, development of a project approach with contractor and CEC staff, and engineering inspection and assessment of work at key points during maintenance activities. I have included a purchase order for these services (budgeted maintenance items).
CEC 2017 Audit: As I mentioned last meeting, there will a couple of delayed monthly operating reports while Emma is on leave, and we have a contingency plan if any unanticipated assistance becomes necessary. Most of the admin reports will be included in monthly packets. Our auditor, Julie DeSimone of Moss Adams, will be available to present the audit by teleconference at the March meeting like last year.
Nissan Leaf Purchase: We received the Nissan Leaf this Tuesday, and are adding studded tires in preparation for Board, staff, and members to take it for a test spin.
Other work in progress: CEC HQ building plan, tariff consolidation for net metering, and a few other internal projects once again took a back seat while working on RADIANCE, year-end closeout, project preparations for 2018, and personnel management activities.
Summer Intern: After inquiring through several venues, I was able to locate a graduating UAF engineer that will be pursuing his master’s degree this fall to intern with CEC this summer. I received his resume and will be bringing a recommendation to hire him for the summer (unbudgeted) to augment our shrinking staffing (also not budgeted).
Power Creek Road Washout: While in Juneau, I met with DOT regarding Power Creek Road. They have made significant progress and are tentatively planning a 2019 rebuild, pending funding. We offered our assistance for pursuing funding opportunities.
Juneau Meeting Summary: Bill Thomas picked us up at the airport and arranged meetings with Representative Stutes and Senator Stevens, where we indicated the importance of preserving the PCE program, repairs to Power Creek Road, and to a lesser extent the Crater Lake project. I met with them again for dinner Friday and reiterated both these priorities and other City items such as waterfront expansion and Coast Guard fast class vessel berthing. I also met with the Governor to discuss Cordova waterfront renovation. I was also able to meet with the Department of Revenue regarding raw fish taxes. I attended most of the APA Legislative Conference presentations, and circled back to meet with various representatives on issues they were working on including Bryce Edgmon’s staff, Reps. LeDoux, Josephson, and Claman. I continued on to Seattle on personal time to participate in the North Pacific Fisheries Management Council meeting and get in the hopper for them to host a meeting in Cordova (week long, 100-150 participants) and testify regarding the significance of IFQ management on coastal economies and energy sales/infrastructure support.
Bill Thomas and Kallander & Associates Contracts: I will have monthly report summaries and information for the March packet.
Generation and Operations Reports: Will be verbal from Manager Newlun this month. Newlun mentioned the Nissan Leaf (electric vehicle) arrived.
CEO Travel: I am travelling to NRECA TechAdvantage with Craig Kuntz to evaluate software and metering packages and meet with senior NRECA technology staff regarding CEC’s technology choices. I travel to Washington, DC March 7-13 to present on energy storage, meet with NRECA, US Coast Guard, Dept. of Energy, Congressional Delegation, and others as time and schedule allows.
CEO Verbal Report
At Koplin’s request Newlun gave the Generation/Distribution report reviewing items for the Orca plant, Power Creek and Humpback Creek plants, vehicles, buildings, and distribution projects. Newlun mentioned the Nissan Leaf, electric vehicle, arrived.
Koplin mentioned hiring a summer intern, an engineer, to help with various projects due to CEC personnel retiring/terminating resulting in a smaller staff. He said the audit went very well and audited financials were given to him three days into the audie. There was a discussion regarding Koplin’s trip to Washington DC next week and meetings that are scheduled. Koplin mentioned he is looking at late fall of this year or 2019 to purchase advanced metering devices due to new technologies being put into place. Koplin mentioned Kallander & Associates reports for January and February are included in the packet and that Raven’s Walk (Bill Thomas) will be remitting his reports, which will be included in agenda packets as they are received.
Bailer and Newlun reviewed the following reports:
• Financial Statements for 12 months ending 12/31/17 ( unaudited)
• Revenue Report for January
• Cash Flow Analysis for January
• Cash Disbursements for January
• Bankcard Services Summary of Charge Statement for 12/17/17 & 1/17/18
• Generation and Sales Statistics
Purchase Order #2019 to NC Machinery Inc. for $84,577.84 – Phillips moved and Cooper seconded to approve Purchase Order #2019 to NC Machinery Inc. for $84,577.84. Discussion. Voice vote: Unanimous. Motion carried.
Purchase Order #2025 to John Magee for NTE $10,000 – Faulkner moved and Phillips seconded to approve Purchase Order #2025 to John Magee for a not to exceed amount of $10,000. Discussion. Voice vote: Unanimous. Motion carried.
Purchase Order #2026 to Electric Power Systems for NTE $25,000 – Cooper moved and Faulkner seconded to approve Purchase Order #2026 to Electric Power Systems for NTE $25,000. Discussion. Voice vote: Unanimous. Motion carried.
Meter Reading Award – Cooper moved and Faulkner seconded to award the Meter Reading proposal to Sluff Management, LLC for the amount of $2,000 per month. Bailer said this was the only proposal that was received per the proposal specifications. Discussion. Voice vote: Unanimous. Motion carried.
CEO Travel – noted
November 2017 – January 2018 Customer & Field Survey Results – Discussion
• Policy #67 – Code of Conduct
• Policy #1G – Functions of the Board of Directors – Cooper mentioned the Policy Manual in the Board dropbox does not have Policy 1G. Bailer said she will correct this.
• Nominating Committee Process for New Directors
• Annual Meeting – March 19 at Mt Eccles. Meeting starts at 7:00 p.m.
BOARD PENDING EVENTS CALENDAR
It was mentioned the CEO Evaluation will be conducted at the March Board meeting.
SUMMARY OF BOARD DIRECTION TO CEO
• Put CEC decals on the Nissan Leaf
Phillips – Great meeting, it went quickly and efficiently. Thank you to Scott Newlun for the Operations Report.
Faulkner – Good meeting with good information. Faulkner is hoping CEC can recruit the employee replacements that are needed. Faulkner thanked Cook for Chairing the meeting.
Cooper – Thank you. Good meeting, we moved through it fast. Cooper appreciates the opportunity to attend the APA Legislative Conference and the training that was offered. She mentioned the training was very good.
Cook – The Succession Planning training he, Cooper, and Phillips attended while at the APA Legislative Conference in Juneau was very good and he recommends this training for all Board members. There was a CEO list included in the training that Cook will give to Bailer to include in the March agenda. Cook said he appreciates Cooper and Phillips attending the APA Legislative Conference. He thanked Bailer, Newlun, and Koplin.
Faulkner moved and Phillips seconded to adjourn at 7:15 p.m.