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 6:00 p.m. by Chairman Pegau. Members present were Cook, Cooper, Wooden and Phillips. Director Faulkner joined at 6:20 p.m. and Director Little joined at 6:35 p.m. Also present were CEO Koplin, Manager of Administration and Finance Merritt, Executive Assistant/HR Coordinator Bailer (Recorder), and Project & Technology Coordinator Kuntz.
Mary Anne Bishop and Kate McLaughlin were present.
APPROVAL OF AGENDA
It was moved by Cook and seconded by Phillips to approve the agenda as presented.
Voice vote: Unanimous. Motion carried.
PRESENTATIONOF COBANK SHARING SUCCESS AWARD – Pegau told Mary Anne Bishop and Kate McLaughlin, that Cordova Electric Cooperative, in conjunction with CoBank, proudly presents The Eyak Preservation Council a contribution totaling $8,200, $4,100 from each entity, for a Solar Cordova Research and Feasibility Preliminary Report, as part of the CoBank Sharing Success Award program. Bishop and McLaughlin thanked the Board
It was moved by Wooden and seconded by Cook to approve the consent agenda that includes the following:
a) Minutes of October 25, 2017 Board Meeting
b) Related Party Checks
• Ravin’ Good Enterprises (8-10-17) – $517.50
• Cordova Computers – $475.00
Voice vote: Unanimous. Motion carried.
CEO Written Report
Interest Rates: Interest rates are holding steady.
Electric Energy Storage (EES) Project Update: I was able to tour Kodiak Electric’s flywheel storage system and SCADA system while in Kodiak. The grid modernization laboratory consortium grant (GMLC) kickoff meeting will be in Cordova on December 11th and 12th. There is a special Board meeting December 13th to review the budget and we can arrange a brief presentation by the project lead, Rob Hovsapian of Idaho National Laboratory to brief the Board. We are currently eligible for match labor and materials and are accounting for them accordingly.
Electric Vehicle Charging Stations: Staking is complete for the charging stations and City permits are in progress for a November installation as line crew time allows.
Power Creek Road Washout: There was an Alaska DOT site visit to perform surveying last week.
Tariff Schedule 600, 700, 4.7 and 4.8 consolidation: I anticipate a draft in December.
Equity Management Plan Recommendations: I plan to include suggestions in the December agenda.
CEC HQ Building: Staff will begin the process of offering the CEC Headquarters Building for sale for competitive bid.
Units 5 and 6 Replacement: The two caterpillar generators purchased in 1999 to provide additional power when the Eyak diesel generator plant was demolished are approaching 42 years of age and have over 100,000 run time hours. Staff is evaluating alternatives regarding the generators; continue to rebuild them, replace them with new or used diesel generators or with alternative technologies, or simply remove them from the CEC fleet. The future of these generators is tied to other CEC choices. A grid scale battery, for example, is expected to sharply reduce run time hours on the diesels and may extend the life of 5 and 6. Scott Newlun has put together some rough numbers for various alternatives in his operations report below.
We found several issues with our communication system and have worked out some of them, reducing our failure rate considerably. The line crew has done an outstanding job of aged cable replacement in the alleyway project and are nearing completion if weather cooperates.
Douglas Quist of Stantec has taken the samples from the EYAK remediation site and we are awaiting the lab results before meeting with Bill O’Connel of the ADEC regarding the Eyak Service Center spill remediation to discuss if the case can be closed out.
I will be traveling to the NWPPA conference in Anchorage and attending the energy storage workshop that will be put on by ABB (Scott Newlun).
ORCA Power Plant
• We have submitted the Class 2 facility tank registration to the ADEC. (thanks for reminder)
• Replacing single walled lube oil tank, transported contaminated soil and closed out spill report for Cat lube oil spill from last October.
• Materials and equipment are being purchased for budgeted PLC upgrades, fuel metering, and the Orca Battery bank replacement approved by the Board in October.
• I didn’t get any solid number for the replacement of unit 6 instead of top end overhaul. We do have some options and rough estimates I will throw out.
o Top end overhaul $150,000
o Find a used 3516 NSPS ZZZZ unit $500,000 (Maybe) they are getting harder to find.
o New 1 Mw unit $1-2 Million (tier 4)
o New 1.5 Mw unit $3-5 Million (tier 4)
o Used EMD’s 1.5 and 2.5 Mw from Nome $3-6 Million (NSPS ZZZZ)
Power Creek Hydro Plant
• We have replaced and upgraded the cameras at the Power Creek Intake area.
• Evaluating options for patching the dam.
• Meeting with DOT about the road produced three options for repair. Money is the issue to move forward. We will be looking for assistance with them
Humpback Creek Hydro Plant
• The hoist for the crane has been replaced and controls and weather shield installed
CEC Fleet Vehicles
• We have returned the leased Mini-Excavator.
• Work on reel trailers, installation of studded tires and backup alarms on service trucks.
• HQ plumbing, roof, and misc. maintenance.
• New controls for the overhead doors at ESC have been installed.
• Alleyway: all of the conduit has been installed and some of the HV cable is in and terminated.
• Had a meeting with DOT and found out that the culvert project at Fleming Spit has been pushed back to 2020. This will drastically change our work plan for next year.
• Work Order inspection, meter reading, service connects and other routine maintenance.
CEO Verbal Report
Upon question Koplin talked about the headquarters building and options for selling it. A discussion ensued.
Upon question Koplin explained how repairs to the Power Creek Hydroelectric dam have been done in the past. A discussion ensued.
Koplin mentioned Manager of Generation and Distribution Newlun is in Anchorage for a conference and that today Newlun was at a meeting with the Department of Energy Storage Group who have indicated they will help fund CEC’s battery bank. Discussion.
Koplin mentioned a kickoff meeting is scheduled for GMLC in Cordova December 11-12, 2017, that the Board is welcome to attend, and that Rob Hovsapian, GMLC Project Lead, will be in Cordova on December 13, the same day as the Board’s special meeting and offered to talk with the Board. Discussion. The Board directed staff to add a GMLC presentation to the December 13, 2017 agenda.
Koplin mentioned Bill Thomas (past Alaskan Representative) is doing lobbyist work and contacted him to offer his service. Discussion.
Upon question a discussion ensued regarding repair options to generator Unit #6.
Director Faulkner arrived at the meeting.
Merritt reviewed the following reports:
• Financial Reports for October
• Cash Flow Analysis for October
• Revenue Report for October
• Cash Disbursements for October
• Bankcard Services Summary of Charge Statement for 9/17/17
• Generation and Sales Statistics
Purchase Order #2000 to Cordova Telephone Cooperative for $11,384.68 (non-budgeted) – Wooden moved and Cooper seconded to approve Purchase Order #2000 to Cordova Telephone Cooperative in the amount of $11,384.68. Discussion. Voice vote: Unanimous. Motion carried.
Director Little arrived at the meeting.
Appoint Nominating Committee & Chair for Committee – Directors submitted names of members that have agreed to serve on the Nominating Committee. Cooper moved and Cook seconded to approve the Nominating Committee as listed:
• Mary Anne Bishop
• Mark Meredith
• Belen Cook
• Kate McLaughlin
• Kristen Gorman
• Dave Zastrow
Voice vote: Unanimous. Motion carried.
The officers appointed Mary Anne Bishop to serve as Chair of this Committee.
Moss Adams LLP Audit Engagement Letter & Professional Services Agreement – Cooper moved and Phillips seconded to approve the Engagement Letter and Professional Services Agreement with Moss-Adams LLP as presented. Fees for audit preparation are estimated to be $19,550 plus out of pocket expenses at cost. Discussion regarding Moss Adams LLP length of service. Voice vote: Unanimous. Motion carried.
Capital Credits-Discussion – Pegau mentioned the information gained at the Board training last week regarding capital credits and said the Board needs to decide if there’s a desire to pay capital credits to members, when to pay them, and how much. Discussion. Board directed staff to provide scenario’s in the budget including paying zero percent, 1% and 2% capital credits in 2018.
Strategic/Operating Plan – Pegau asked Directors if there were any projects they would like staff to prioritize for 2018. Discussion.
Purchase Order #1996 to EnerSys changed to United Sales Associates (approved at October 25, 2017 meeting) – Wooden moved and Little seconded to approve changing the Supplier name on Purchase Order #1996 to United Sales Associates, Inc. for a not to exceed amount of $35,000. Koplin explained the materials are coming from a distributor versus the main company, which is why there is a supplier name change. Voice vote: Unanimous. Motion carried.
CEO Travel – Koplin mentioned there is a Native Village of Eyak Shepherd Point Road reception in Anchorage on November 28, 2017 that he will be attending. Discussion.
NRECA Annual Meeting – Nashville, TN, February 26-28, 2017 – Wooden will check her schedule to see if she can attend.
Christmas Decorating Contest – Date for judging – Discussion on a date to conduct the judging.
• Policy #59B – Director’s Training
• Policy #61A – Identity Theft Prevention Program – Discussion
• Board Site Visits and Infrastructure Assessment
• Board Self-Evaluation & Development 2017 – Performance Elements – January
• Special Meeting for Budget Presentation – Wednesday, December 13, 2017
• Bylaw Committee to meet and submit any proposed changes at the December Board Meeting – Due to Blackadar’s resignation, Pegau appointed Phillips to the Bylaw Committee and Wooden as Chair.
BOARD PENDING EVENTS CALENDAR
Discussion on timing for Budget presentation.
SUMMARY OF BOARD DIRECTION TO CEO
• Priority list for Board to review for next legislative session
• GMLC presentation at December 13 special Board meeting – let them know
• Budget three scenarios for allocating patronage capital at 0%, 1% and 2%.
• Headquarters building – building transition analysis
Little – Appreciates the meeting, saying we talked about important things. Board training was very good. Appreciates everyone’s input. Thank you to staff.
Wooden – Welcomed Phillips to the Board. Thanked staff for putting together a great packet.
Faulkner – Board training was very good.
Cook – Appreciated the Board training saying it was a really good refresher. Appreciates the packets and information.
Cooper – Thanked staff and Board. Appreciates the work staff does.
Phillips – Appreciates the opportunity for Board training. Thanked staff.
Pegau – Board training was valuable and it was good to have the Board present. Mentioned CEC Scholarships for graduates.
Koplin – Staff appreciates the Board. He mentioned having Board training also helps staff in working with the Board. Koplin said he appreciates staff.
Cooper moved and Phillips seconded to adjourn at 8:05 p.m.