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Cordova Electric Cooperative > Minutes  > February 2019
Cordova Electric Cooperative

February 2019

CORDOVA ELECTRIC COOPERATIVE, INC.

REGULAR BOARD MEETING

February 27, 2019

The Regular Meeting of the Board of Directors of Cordova Electric Cooperative, Inc. was called to order at 6:00 p.m. by Vice Chair Cook. Members present were Phillips and Cooper. Directors Pegau and Faulkner participated via GoToMeeting. Directors Johnson and Srb were absent. Also present were CEO Koplin, Manager of Administration & Finance Merritt, Executive Assistant/HR Bailer (Recorder), Manager of Generation and Distribution Newlun, and Project & Technology Coordinator Kuntz.

MEMBERSHIP PARTICIPATION

Jeremiah Becket (CTC General Manager), Leif Stavig (CEC Nominating Committee Chair), Camtu, Thai and Tutrin (Alaska Wild Seafoods LLC).

Stavig spoke about the Nominating Committee saying he hoped to have more members volunteer for the Board of Director election, however, some interested parties declined due to the time commitment involved. Discussion.

Beckett thanked everyone for a productive 2018, said he appreciates the partnering opportunity like the Customer Picnic, and that he is looking forward to another productive year.

APPROVAL OF AGENDA

Phillips moved and Cooper seconded to approve the agenda with the amended Board of Adjustment Meeting Minutes, the removal of the CEO Evaluation, and the addition of the Acting CEO memo. Voice vote: Unanimous. Motion carried.

Director Faulkner joined the meeting via GoToMeeting.

CONSENT AGENDA

Cooper moved and Phillips seconded to approve the consent agenda that includes the following:

a) Minutes of January 23, 2019 Board Meeting

b) Amended Minutes of Board of Adjustments Meeting of February 15, 2019

Voice vote: Unanimous. Motion carried.

MANAGEMENT REPORTS

CEO REPORTS

CEO Written Report

CEO Travel: I will be on vacation March 1-10, followed by a presentation at NRECA TechAdvantage, attendance of the Electricity Advisory Committee Meeting, a visit to SAFT battery factory, and return to Cordova March 19.

Power Cost Equalization (PCE): The governor has proposed to liquidate the approximately $1B PCE endowment fund, which funds the PCE from year to year from the earnings. He still proposes to pay the full PCE program out, just liquidate the permanent fund that currently secures it for all time.

Interest Rates: Interest rates have been creeping slightly lower with the 20-year holding near 5%.

Crater Lake Update and Go/No Go: I have attached a memorandum of the geotechnical work completed this fall. The rock is being tested in the laboratory and final report delivered which will give a much more technical and comprehensive engineering data set that supports the summary. I will be presenting a Go/NoGo tollgates update PowerPoint at the meeting.

RADIANCE Update: We are working on detailed modelling, data management, and the digital blueprinting at Idaho National Laboratory (INL). We will hold the next technical interchange meeting at the INL where CEC power production staff can ground truth the laboratory model.

Battery Electric Energy Storage (BESS) Project Update:

Pilings are on order, structure steel, recloser, and other material orders are pending.

Power Creek Road Repairs: The project is planned for summer of 2019 and will not require a contribution from CEC. I am reviewing Alaska Department of Transportation’s plans to provide feedback on our Power Creek transmission line location and depth in the new design.

Budget:

There is a fairly sizable Cordova fleet participating in the Tanner Crab commissioner’s permit, and interest in shrimp season which may bump spring sales to help offset the Cutter revenue. The Copper River season is expected to have normal openers on a stronger than average king run and slightly lower than average sockeye run.

Solar Update: We received three new panels for the price of shipping from a partner Rob Bensin who was closing out some inventory and going to work for Alaska Center for Energy and Power. He will come or send a technician this spring to help CEC mount the panels on our Headquarters roof and train for installation. This will be the first grid connected rooftop solar on our grid.

Human Resources: There was only one application received for the Project Engineer position and it is under review.

Risk Management: Out E-mod, a measure of lost time work accidents on a rolling five-year average that affects our insurance rates, is at a very low 0.85, one of the lowest in the state, with 1.00 being average.

Board of Adjustment Meeting: An attorney opinion was emailed to the Board, and a summary memo is in the board packet. Staff will recommend attorney drafted tariff changes to simplify this process.

CEO Verbal Report

Discussion on various topics included in the CEO’s written report. Koplin asked to defer the Crater Lake Go/No-Go discussion to the March meeting to enable more directors to be present. Board concurred and stated they would like to read the Geotechnical Report, which Koplin said should be at CEC in late March, before making a decision. Koplin showed an aerial photo of the Crater Lake project area and discussed pumped storage. A discussion ensued.

GENERATION & DISTRIBUTION REPORT

Noted

ADMINISTRATIVE REPORTS.

Merritt reviewed the following reports and answered questions.

  • Financial Reports 1/31/19 – Handed out
  • Revenue Report for January
  • Cash Flow Analysis for January
  • Cash Disbursements for January
  • Bankcard Statement Summary for 12/17/18
  • Purchase Order Report
  • Generation and Sales Statistics

NEW BUSINESS

Board of Adjustment Recommendation Regarding Alaska Wild Seafoods LLC Account – Phillips moved and Cooper seconded to reimburse Alaska Wild Seafoods LLC $169,709.18, which constitutes the remaining amount of the metering error on their account. Discussion. Voice vote: Unanimous. Motion carried. Camtu thanked the Board.

Acting CEO – Phillips moved and Cooper seconded to approve the CEO’s appointment of Emma Merritt as Acting CEO during the CEO’s March 1st through March 20th absence. Voice vote: Unanimous. Motion carried.

UNFINISHED BUSINESS

None

INFORMATION ITEMS

CEO Travel – Cooper asked to have any upcoming travel plans added to the CEO Travel report.

Audit Presentation – Scheduling – Merritt mentioned Julie Adams, with our auditing firm Moss Adams LLC, contacted her yesterday to give other dates that she is available to present the audit to the Board. Discussion. The Board scheduled the audit presentation, with Adams present to conduct it, for April 29, 2019 at 6:00 p.m.

Board Training with Counsel – After discussing dates and training options the Board scheduled the training with Counsel for May 22, 2019, the date of the regular May Board meeting. The desired training is “Overview of NRECA Board Governance Task Force Report”.

Kate Williams, Principal, Cordova Junior/Senior High School Letter re: Scholarship – noted

Thank you note for Power Town Presentation – noted

OTHER ITEMS

Policy Review

  • Policy #25C – Service Rendered on Consumers’ Premises – noted
  • Policy #26B – Area Coverage – noted

EXECUTIVE SESSION

Postponed to March Board meeting.

PENDING AGENDA

  • 2019 Annual Meeting – Monday, March 25, 2019. Meeting starts at 6:30 p.m.
  • Board Self-Evaluation & Development
  • Invite Eyak Preservation Council to present Solar report – Koplin said they are not ready and may be able to present to the Board at the April or May Board meeting.
  • Review Board Evaluation Quarterly (January/April/July/October)

BOARD PENDING EVENTS CALENDAR – Noted

SUMMARY OF BOARD DIRECTION TO CEO

  • Email Senator Stevens and Representative Stutes re: PCE program cuts
  • Talk with Counsel about possible Tariff revisions

Vice Chair Cook presented Director Cooper with a Northwest Public Power Association Certificate for completion of the Credentialed Cooperative Directors courses.

BOARD COMMENTS

Pegau – No comments

Faulkner – Off line

Phillips – Thanked staff for their hard work. Said he would like to see the Crater Lake Geotechnical Report before deciding on the Crater Lake go/no-go decision.

Cooper – Thank you to staff for a great meeting. Thank you to the Board of Adjustments for their meeting and decision. Cooper would also like to see the Crater Lake Geotechnical Report before deciding on the Crater Lake go/no-go decision. She is interested in the pump storage and would like to see a new/updated feasibility study that includes this.

Cook read Johnson’s emailed comments – Johnson is worried about the Governor’s proposal to liquidate the PCE program. She is excited for the first solar panel.

Cook – Good meeting. Thank you for being here.

Phillips moved and Cooper seconded to adjourn the meeting at 6:54 p.m.

____________________________________

Date Approved Secretary/Treasurer

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