May 2018

CORDOVA ELECTRIC COOPERATIVE, INC.

REGULAR BOARD MEETING

May 23, 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, Phillips, Srb and Johnson. Director Faulkner was absent. Also present were CEO Koplin, Manager of Generation & Distribution Newlun, Executive Assistant/HR Coordinator Bailer (Recorder), and Project & Technology Coordinator Kuntz.

MEMBERSHIP PARTICIPATION

None

APPROVAL OF AGENDA

Cooper moved and Phillips seconded to approve the agenda as presented

Voice vote: Unanimous. Motion carried.

CONSENT AGENDA

Johnson moved and Srb seconded to approve the consent agenda that includes the following:

1. a) Minutes of April 25, 2018 Board Meeting

Voice vote: Unanimous. Motion carried.

MANAGEMENT REPORTS

CEO REPORTS

CEO Written Report

Human Resources: As new employees, interns, and laborers join CEC, are gearing up for summer construction and activities. We are currently advertising for an apprentice for the power plant, and during budget this fall will be recommending an engineer for full staffing (currently 15/18).

Tariff Revision: After reviewing average residential service installation costs, a significant increase in the residential line extension is warranted. Also, members have been requesting payment terms, and an option for paying part down and part payments would provide a service to members at low cost. A Tariff revision is included for consideration to be published for 30 days for member consideration with a public hearing to follow.

Interest Rates: Short term interest rates are now at 3.69% and 20-year rates are at 5.00%. I may put one or two short to medium term fixes in place before the June rate increase.

RADIANCE Project: Work is progressing, and the next onsite meeting is scheduled for July 16th-18th to include a battery energy storage meeting with SAFT and ABB an EPS (Electric Power Systems) to work through details.

EES Project the notice to proceed has been issued to SAFT, and the final details of the contract with Sandia Labs and Electric Power systems are nearly complete and will be on the June agenda

Other work in progress: CEC headquarters building plan, tariff consolidation for net metering, and other projects are on hold as we make progress on construction and project work.

Bill Thomas and Kallander & Associates Updates: The State legislative session has concluded. PCE (Power Cost Equalization) has been secured. Bill Thomas and John Bitney (City Lobbyist) followed up with Alaska Department of Transportation, and they currently plan to raise Power Creek Road 2’ and armor it in 2019. I will circulate a Bill Thomas summary report and Kallander report as they become available.

CEO Travel: Tuesday afternoon, May 15 I attended TEDx talk training in Anchorage for a TEDx presentation the end of this month at the National Laboratory Day in Fairbanks where I will also present. The review and training included excellent pointers for presentations in other venues. I visited with Mead Treadwell and discussed new hydrogen and liquified natural gas (LNG) technologies and opportunities for Cordova. Wednesday morning I met with Electric Power Systems to review the Battery Energy Storage project scope and integration details to get a quote for their services for the contract with Sandia labs. I also participated in the RADIANCE biweekly integrated project team (IPT) meeting. I will be attending my last Northwest Public Power Association (NWPPA) Board of Trustees meeting next week on Monday and Tuesday which will conclude my second and final term on that board. The knowledge exchange and access to cost-saving methodologies and resources has been very beneficial to CEC.

Generation & Operations Report

ORCA Power Plant

• Repair Air start system on Unit 3 and install automated water drain valves in air lines.
• Farabee Mechanical Inc. (FMI) Inspects unit 4, waiting on report.
• Marine Services Inc. (MSI) performs one rev inspection on unit 3 and 7.
• MSI found a broken valve bridge on EMD #3 so borrowed one from EMD #7 and ordered one.
• MSI found the cam shafts on unit 3 is delaminating and working up a repair quote.
• Work on cyber security with Grid Modernization Lab Consortium (GMLC) group.
• Repair Zetron callout system.
• Fuel metering system is under construction.
• Power transformer’s (PT’s) have been replaced on unit 6 control circuit.
• Protective relay on Unit 3 has been reprogramed with help from Electric Power Systems (EPS).
• Replace 24-volt, Direct Current (DC) power supply at Eyak substation comms.

Power Creek Hydro Plant

• Inspected Penstock area with John Magee and Scott Hibbs to plan June interior inspection.
• Received patching material for dam, now to schedule a trip when we have low water.
• Auto flush disabled due to Turbine Inlet Valves (TIV’s) failing to reopen. EPS is helping.
• Ready to source new dam with McMillan Jacobs’s assistance.

Humpback Creek Hydro Plant

• Skiff motors need replaced (aged); Coast Guard inspected the skiff
• Routine maintenance check at the plant and forebay.

CEC Fleet Vehicles

• Unit 34 has had repairs completed and studded tires removed. Need new rear shocks.
• Studded tires have been removed from all vehicles.
• New Cordova Electric Cooperative (CEC) stickers on unit 44 (the Leaf).

Buildings

• Some light fixtures at Illanka have been replaced.
• Boiler in the Headquarters (HQ) building has been shut down for the summer.
• Collect quotes to repair sewer line at the Eyak Service Center (ESC).
• New cell phone booster antenna at Orca power Plant.
• Yukon Fire Services has inspected our facilities except Humpback Creek Hydro (HBC).

Distribution

• New service requests including one from the City.
• Replace several street light poles, order transformers for inventory
• We had one crossing bored out on Whitshed Road by the company Cordova Telephone Cooperative (CTC) brought in; none of the others were completed. They will return this fall.
• Replace Junction Cabinet (JC) behind the High School area.
• New Staker/Warehouseman has started training.
• Service connects and meter reading

CEO Verbal Report

The Board viewed a power point presentation and a discussion ensued regarding the Crater Lake Water and Power project.

ADMINISTRATIVE REPORTS

Koplin reviewed the following reports:

• Generation and Sales Statistics

NEW BUSINESS

Tariff Revision – Section 6.2.2 and 6.4.1 – Cooper moved and Cook seconded to advertise the proposed tariff changes to the membership for adoption. Discussion. Voice vote: Unanimous. Motion carried.

Purchase Order to Meridio Solutions for $60,000 – Phillips moved and Johnson seconded to approve the amended 5-Year Agreement with Meridio Solutions in the amount of $60,000 for a mapping and work management solution. Discussion. Kuntz explained the change to Section 8-a), which allows a refund upon termination, and Section 9 with the addition of AutoCad as an alternative system. Discussion. Voice vote: Unanimous. Motion carried.

UNFINISHED BUSINESS

None

INFORMATION ITEMS

CEO Travel – noted

Alaska Power Association Annual Meeting – Fairbanks, August 22-24, 2018 – Pegau said any Directors wishing to attend this meeting must advise staff by the June Board meeting.

Credentialed Cooperative Director Training – A discussion ensued regarding having a trainer come to Cordova to conduct a CCD (Credentialed Cooperative Director) training class. The Board decided on the Strategic Planning course to be held at Cordova Electric Cooperative before November 2018 and directed staff to coordinate it.

OTHER ITEMS

Policy Review

• Policy #6C – Services of Consultants – noted
• Policy #7C – Operational Policy – noted

PENDING AGENDA

• Nominating Committee Process for New Directors – Add to Board calendar as an August item
• Board training conducted by attorney in second quarter of every year. Scheduled for June 5, 2018 at 5:20 p.m. in the CEC boardroom.

BOARD PENDING EVENTS CALENDAR – noted

SUMMARY OF BOARD DIRECTION TO CEO

• Schedule CCD training for Board – Strategic Planning
• Schedule Board training with Counsel for Tuesday, June 5, 2018 at 5:30 p.m.

BOARD COMMENTS

Cooper – Thank you to staff for a good meeting and to the Chair for moving through the meeting.

Srb – Thank you.

Johnson – No comment

Cook – Thanked staff and crew.

Phillips – Appreciates the CEO bi-weekly updates.

Pegau – Appreciates email updates when there will be a handout at the meeting to give the Board time to review and think about the item. Pegau said a review of the Crater Lake Water and Power project would be appreciated and he encouraged Directors to read through the Crater Lake Feasibility Study.

EXECUTIVE SESSION

CEO Evaluation – Cooper moved and Phillips seconded to go into executive session at 7:18 p.m. to consider matters, the immediate knowledge of which would clearly have an adverse effect on the finances of the Cooperative. Staff was excused.

Board came out of executive session at 7:39 p.m. The Board conducted the CEO Evaluation and no action was taken.

The meeting adjourned at 7:40 p.m.

____________________________________

Date Approved Secretary/Treasurer