Cordova Electric Cooperative

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Cordova Electric Cooperative

January 2020

CORDOVA ELECTRIC COOPERATIVE, INC.

REGULAR BOARD MEETING

January 22, 2020

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, Cooper, Ranney, and Phillips. Director Faulkner participated via teleconference. Director Johnson arrived at 6:06 p.m. Also present were CEO Koplin, Manager of Administration and Finance Merritt, Manager of Generation and Distribution Newlun, Executive Assistant/HR Bailer (Recorder), and Project and Technology Manager Kuntz.

MEMBERSHIP PARTICIPATION

None

APPROVAL OF AGENDA

Phillips moved and Cook seconded to approve the Agenda as presented. Voice vote: Unanimous

CONSENT AGENDA

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

  • a) Minutes of Special Meeting on November 21, 2019
  • b) Minutes of December 18, 2019 Board Meeting
  • c) Approve New Members – 10/01/19 – 1/16/2020

Voice vote: Unanimous. Motion carried.

Director Johnson arrived at the meeting.

MANAGEMENT REPORTS

CEO REPORTS

CEO Written Report

Humpback Creek Penstock Rehabilitation: We are working with vendors to clarify the schedule and contract(s) for completion of the maintenance work this year.

Power Creek Dam Replacement: We are considering the current weather pattern as an opportunity to perform the work this winter.

BESS Update: The battery contributed to record-breaking monthly November (95%) and December (89%) hydro production. Work is in progress with Pacific Northwest and Sandia National Laboratories to complete integration, data collection, and reporting tasks for payment. Power production and line crew have been completing the new gear installation at the Eyak substation including the new recloser for connecting the battery to the grid. Safety Lighting was installed for night lighting.

Orca Boiler Update: CEC is commencing with the wiring work, controls, and automation following Power Creek Maintenance and we hope to have the installation and automation completed by March.

RADIANCE Project Update: The Advanced Metering Infrastructure (AMI) specifications are nearly complete for soliciting equipment for the pilot project. The cybersecurity plan has been reviewed and released to the Department of Energy for final acceptance. CEC is implementing the plan elements. The Orca Boiler and BESS are being pulled into the system model to include their impacts

Solar Panel Installation and Assessment Update. The inverters and cables have been received for the CEC panels, which we will probably install in the substation once the data logger is ordered and received. Preliminary modelling work was shared with CEC. A draft model and results is anticipated by April.

CEO Travel: I am travelling to Fairbanks this weekend for personal business, and to Juneau on personal time next week for a presentation to the House Transportation Committee and Alaska Municipal League on Alaska Marine Highway System improvements (particularly Cordova service). I will be in San Antonio the week of January 27th to present at DistribuTech. I will be meeting with many suppliers and vendors there to look at AMI options and other project and technology opportunities. My next EAC meeting is February 26th and 27th; I will be calling in to the February CEC Board meeting. I was just contacted on 1/16/20 and asked by the Deputy Secretary of Department of Energy (Energy Efficiency and Renewable Energy) to present on a Monday afternoon panel at DistribuTech so I am leaving a day earlier to participate.

Cordova Conferences: I worked on planning and coordinating the Electrify Alaska conference in April, and the Isolated Power System Connect (IPS Connect) conference in July. A contract for conference coordination is included for Board consideration on this agenda. $5,000 was budgeted for CEC to support this conference but the goal is to have it be net neutral from conference proceeds. The contract will exceed the budgeted amount and rely on sponsorships and conference registrations to keep the cost within budget, however, the goal is to be cost neutral (free) to CEC. Again, conference background is available at these locations:

  • 1) Electrify Alaska Conference the week of April 27th (Partners: NRECA, SEPA, REAP, DOE) and link: https://beneficialelectrification.com/electrify-indiana/
  • 2a) Alaska Wind-Diesel Workshop the beginning of the week of July 27th (Partners: REAP/ACEP/AEA) link: http://events.r20.constantcontact.com/register/event?oeidk=a07eg9kv6r14b07654a&llr=hmdvnysab
  • 2b) Isolated Power System Connect the end of the week of July 27th (Partners: IPS Conference, ACEP/REAP and link: http://www.ipsconnect.org/

CEO Evaluation

I will have a copy of my self-evaluation available as a handout at the meeting, and copies will be distributed electronically and placed in the Dropbox folder for you. I will have the CEO evaluations by staff available to the Board at the February meeting for review.

Power Creek Valve and Bearing Repairs: The Power Creek penstock was dewatered to repair the leaky Turbine Inlet Valves (TIVs) on the unit 5 generator and replace bearing seals. The bearing work was excellent; seals were in fair condition and were replaced, but the source of leaking was traced to accumulation of moths/bugs in a drain hole and has been added to the preventative maintenance program. The bearings themselves are in good condition and this is great news after 17 years of high-hour operation of unit 5. The TIV seals did not fare as well. The seals ended up being slightly small, and no workarounds could be developed, so work shifted to bearings and was stopped when they were completed. The seals are being factory lengthened and will be installed as soon as possible, likely by month end. In the meantime we are losing very little hydro generation. We discovered corroded wiring and other weaknesses and developed an understanding of equipment that has not received comprehensive maintenance since installed, so the overall project has been successful with some challenges. Once the TIVs are repaired, we will be able to perform major maintenance without dewatering the penstock, a huge fuel savings going forward.

Vehicle Maintenance: Studded tires, repairs to construction equipment, and other winter maintenance work was performed.

Fleming Spit Culvert Replacement: The State contract has been approved and signed and returned to ADOT. Materials will be ordered for winter/spring construction depending upon weather.

Iceworm Banners & Misc: Banners were installed for Iceworm Festival and Christmas tree and Main Street lighting were repaired and installed for the holidays. The Coho was disconnected for demolition.

ORC Disposal: We have been in discussion with our colleagues in Iceland and they are preparing to send a delegation to the April “Electrify Alaska” conference to participate in the conference and work out the logistics for removing and shipping our Organic Rankine Cycle (ORC) to Iceland.

DOE Tribal Energy Program NOFA (Notification of Funding Announcement) or FOA (Funding Opportunity Announcement): Our RADIANCE lead Rob Hovsapian of National Renewable Energy Laboratory (NREL), Herb Williams – the founder of Open Hydro (he will be visiting Cordova this spring), Rod Worl – CEO of The Eyak Corporation, and I had a teleconference to consider submitting a proposal by February 8th for building and installation a tidal generator in proximity to the new Prince William Sound Science Center Campus (they would be approached as a partner but have expressed a standing interest in that technology and location) location at Fleming Spit. Parties agree that it is a good partnership, collaboration, and opportunity, but timeline is tight.

CEO Verbal Report

Koplin mentioned the Battery Energy Storage System Project was a very noteworthy project this year and it’s been performing well. He also mentioned CEC’s safety record has been good for the past few years. He would like to order CEC jackets for Board Directors, staff, and key partners for key projects saying it’s been 5-6 years since this was done. Board concurred.

Koplin said he received a call from Daniel Simmons, Deputy Secretary for the Department of Energy, asking Koplin to come a day early to the DistribuTech Conference next week to participate in a panel discussion so he is changing his reservations to accommodate them.

Director question on the Power Creek turbine inlet valve and bearings. Koplin explained what is being done and what has been done on this project.

Director question regarding the Power Creek dam replacement. Koplin said this is a project Kuntz is working on and asked Kuntz to explain the progress. Kuntz explained where we are with the project and said weather permitting it will be replaced this winter. Kuntz mentioned there is also maintenance being conducted on hydro #5 at Power Creek and we can’t do both the hydro maintenance and dam replacement at the same time. Koplin said with the hydro frozen and the avalanche hazard low it’s a good time to conduct maintenance at this site.

ADMINISTRATIVE REPORTS

Merritt reviewed and answered questions regarding the following reports:

  • Revenue Report for December
  • Cash Flow Report for December
  • Cash Disbursements for December
  • Purchase Order Report
  • Debt Summary – December 2019
  • Generation & Sales Statistics

NEW BUSINESS

Approval of Tally Committee – Bailer mentioned Marleen Moffitt called to say she could not serve on the Committee and that Ann Schultz agreed to serve. Cooper moved and Phillips seconded to approve Lisa Laird, Ann Schultz, Diana Rubio and Ruth Steele for the 2020 Tally/Election Committee. Voice vote: Unanimous. Motion carried.

Electrify Alaska Conference – Conference Coordinator – Koplin explained the need for a conference coordinator saying it is more cost effective and professional to have one. Koplin said there is a firm in Anchorage, ArKtiKa Company, LLC, that does this type of work. Koplin said CEC will try to cover the cost for the coordinator with conference proceeds and/or registration fees. Discussion. Upon question Koplin said the goal is to be cost neutral to CEC with sponsorships, registration fees, etc. Pegau moved and Cook seconded to approve the Consultant Agreement between Arktika Company, LLC and CEC as presented in the amount of $10,000.00. Voice vote: 6 yea – 1 nay (Johnson). Motion carried.

Purchase Order #2225 to Professional Computer Solutions LLC for $40,939.00 – Cooper moved and Phillips seconded to approve Purchase Order #2225 to Professional Computer Solutions LLC for $40,939.00. Discussion on costs compared to last year. Voice vote: Unanimous. Motion carried.

UNFINISHED BUSINES

Policy 45C – Smoking Policy – Johnson moved and Phillips seconded to approve Policy 45C to reflect changes as written. Board likes the addition of vaping. Voice vote: Unanimous. Motion carried.

Policy 46C – Hearing Conservation Program – Phillips moved and Cook seconded to approve Policy 46C as presented. Discussion on changes made. Voice vote: Unanimous. Motion carried.

Complete 2019 Board Evaluation – Board reviewed and completed the Board Self-Evaluation and Development 2019 – Performance Elements.

INFORMATION ITEMS

CEO Travel – Noted

Board attendance at regular meetings – Johnson announced her resignation as of this meeting saying she accepted employment in Juneau and is moving. Pegau said there are various methods to filling her Director seat saying her term is through March 2021. Discussion on which method to use. Board concurred to include her Director seat on the Annual Meeting ballot for the unexpired portion of her term to allow the members to vote on who will fill her seat.

CEO Self-Evaluation – handout – Koplin handed out his self-evaluation to the Board and said it will also be emailed to the Board and placed in the Board drop-box.

Koplin mentioned counsel was asked for an opinion of the Bylaw Ballot change regarding Board attendance at meetings adding “without good cause” (“Any Board member who fails to attend three regular meetings of the Board in any twelve (12) month period “without good cause” shall be deemed to have resigned from the Board of Directors, creating a vacancy…” per Board instruction. Koplin said counsel does not like the change but it is up to the Board to choose how they want it written.

OTHER ITEMS

Policy Review

  • Policy #48B – Street Lights – discussion on streetlight maintenance. Koplin said the City of Cordova is responsible for streetlights and they contact CEC for maintenance. Policy is fine as is.
  • Policy #49B – Confidentiality of Personnel Records – Question on digital recordkeeping being included in the Policy. Koplin mentioned at this time personnel records are all printed (hard copy) and there are no digital records.

EXECUTIVE SESSION

None

PENDING AGENDA

  • Review Board Evaluation Quarterly (January/April/July/October)
  • CEC Annual Meeting – Monday, March 23, 2020
  • CEO Evaluation – March

Pegau said he would not be present for the February meeting and would participate via go-to-meeting. Phillips said he too would be participating via go-to-meeting.

Koplin will be attending an Electric Advisory Committee meeting and will also be participating via go-to-meeting.

BOARD PENDING EVENTS CALENDAR

Noted.

SUMMARY OF BOARD DIRECTION TO CEO

  • Review Policy 49B – Confidentiality of Personnel Records, do we need to include language for digital records.
  • Candidate ballot for Annual Mtg to include filling Kara’s position for duration of term.

BOARD COMMENTS

Faulkner – Good meeting, was quick with lots of good information.

Johnson – Appreciates her time on the Board – she learned a lot.

Cooper – Congratulations to Johnson on her new position. Thank you everyone.

Cook – Congratulations to Johnson. Cook agreed to Chair the February Board meeting while Pegau is traveling.

Phillips – It’s been great working with you, Johnson, on the Board – Good Luck. Thank you to staff and the Board.

Ranney – Thanked Johnson for her time on the Board.

Pegau – Thanked Johnson for her service on the Board. He likes the Debt Summary form and says it’s a great addition to the finance reports.

Phillips moved and Johnson seconded to adjourn at 7:20 p.m.

____________________________________

Date Approved Secretary/Treasurer

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