CORDOVA ELECTRIC COOPERATIVE, INC.
REGULAR BOARD MEETING
November 28, 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, Faulkner, Srb, Johnson, and Phillips. Also present were CEO Koplin, Manager of Administration & Finance Merritt, Manager of Generation and Distribution Newlun, Executive Assistant/HR Coordinator Bailer (Recorder), and Project & Technology Coordinator Kuntz.
Alex Russin was present.
COBANK SHARING SUCCESS PRESENTATION – Chairman Pegau presented Cordova School Superintendent Alex Russin with a check from CoBank and Cordova Electric Cooperative as a recipient of the CoBank Sharing Success Program. Russin thanked the Board and expressed his gratitude for the funds for the schools. Chairman Pegau also presented the Cordova Arts and Pageants with a check from both CoBank and Cordova Electric Cooperative as a second recipient of the CoBank Sharing Success Program. Kara Johnson accepted on behalf of Cordova Arts and Pageants.
APPROVAL OF AGENDA
Cooper moved and Srb seconded to approve the agenda as presented. Voice vote:
Unanimous. Motion carried.
ALASKA POWER ASSOCIATION PRESENTATION – Crystal Enkvist, Executive Vice President of the Alaska Power Association/ARECA Insurance Exchange, introduced herself and Michael Rovito, Director of Member & Public Relations. Enkvist and Rovito explained the purpose of the Association and Insurance Exchange and CEC’s participation.
Faulkner moved and Johnson seconded to approve the consent agenda that includes the following:
- a) Minutes of October 24, 2018 Board Meeting
Voice vote: Unanimous. Motion carried.
CEO Written Report
CEO Travel: I attended the cybersecurity and technology workshop in Anchorage October 30 and November 1 and gave a 30-minute presentation to the utilities present. The Cybersecurity workshop was fantastic, and we have already held 1 training session with staff and started incorporating elements of the plan with the assistance of PCS and our national lab partners. I will be attending a Department of Energy Microgrid R&D program meeting in Seattle on December 11th and 12th at their request. I have been working with the Water Power and Technology Office (WPTO) to schedule a RADIANCE project ground-breaking in Cordova, probably in August 2019.
Interest Rates: Interest rates have become a little more volatile but are bouncing up and then back down staying in a narrow range for long term in the 5-5.25% for 10-20 year, and 4.06% for variable.
Crater Lake Update: I had an excellent 2-hour long, very productive meeting with Steve and Wendy Raney and got a better picture of their concerns and expectations. As we get preliminary information and reports we will be sharing them with the Raney’s to give them more timely and informative information regarding rock quality, safety concerns, and design approaches for the project. I would say the meeting ended on cordial, collaborative terms, but the safety concerns are still front and center.
Hydro Maintenance and Project work: We had a great opportunity to take advantage of early drilling success to stretch for the support of thrust blocks 1, 2, and 3 at Humpback Creek in addition to thrust block 7 but weather and logistical challenges stopped us short of completing thrust block 7 and took us just over budget. We will budget to complete thrust block 7 and blocks 1, 2, and 3 which will leave the remaining maintenance at Humpback Creek to be very remedial; slow but steady effort should have it fully coated, supported, and ready for another 80 years of service within the next 5 years. Power Creek will take a fairly substantial effort as well, with our present concerns centered on the dam replacement.
RADIANCE Update: The work products for 2018 are wrapping up including the baseline model, the resilience metrics, and the cybersecurity assessment and protections. We are approaching the first go – no/go decision for CEC, and we will be working with Rob Hovsapian and Mayank Panwar of Idaho National Labs to present a summary and recommendation to the board, and an overview of 2019 goals and work products.
Electric Energy Storage (EES) Project Update:
For the past two weeks I have been working primarily on the design, layout, and technical considerations for the battery energy storage project. Work on relocating and extending the fencing, and electrically isolating them for life safety has added an additional work task and cost layer to the project. The foundation support for the equipment is going to be costlier than anticipated due to concerns with soil contamination at the site, but the steel support pilings will provide a good electrical ground to solve the grounding problems that surfaced in the ground test measurements taken earlier this fall. The project is still on schedule and if weather holds foundation work could start as early as December.
Staff has held a first formal meeting for budget considerations and will be meeting again early next week to build on our preliminary work and estimates to assist Emma in preparing her draft for you.
Generation/Distribution Departments Monthly Report October-November 2018
ORCA Power Plant
- Obtain metering equipment from EPS to troubleshoot engine 6.
- Order a new voltage regulator for engine 6.
- Repair engine 3 fan on its cooling system.
- Replace circulating lube oil pump on engine 4.
- Replace the crankcase vent on engine 5.
- Install a new day tank for engine 6 fuel additive test.
- Install new fuel header on our main fuel tank.
- Filter change on engine 7.
- Inspect Crane.
- Repaired lube oil carburetor on engine 3.
- Install new voltage regulator on engine 6.
Power Creek Hydro Plant
- Inspect avalanche cashes and replace beacon batteries.
- Road is in bad shape been washed out most of the month.
- Help DOT remove approximately 10 trees that blew down on the road.
- Splice comm line that was chewed through by a Bear.
- Routine maintenance check at the plant and forebay.
- Inspect Crane.
Humpback Creek Hydro Plant
- Bring in RSSI and work on TB 7 rehab.
- RSSI evaluates TB 1 and TB 2.
- Assist film crew from University of Alaska with their project.
- Take CTC in to install a new fiber switch.
- Inspect Crane and hoist.
CEC Fleet Vehicles
- Install studded tires on all vehicles.
- Install headlight and blinker bulb in unit 34.
- Some light fixtures at Ilanka have been replaced.
- Plumbing has been repaired at Ilanka.
- Several new service requests.
- Finished installing fiber at substation.
- Assist customers after big windstorm.
- Re-route power lines at TB 1, 2 and 3 at HBC.
- Inspect hot sticks and trucks.
- Ad Chaffing gear to conduits at PWRC that are in the washout area.
- Finish installing conduit from the alleyway project to the oil switch at the Chamber of Commerce.
CEO Verbal Report
Koplin mentioned there is an action item to amend a Purchase Order to Remote Site Services and explained the reasons for the change.
Merritt reviewed the following reports:
- Financial Report ending 10/31/18
- Revenue Report for October
- Cash Flow Analysis for October
- Cash Disbursements for October
- Bankcard Statement Summary 9/17/18
- Purchase Order Report
- Generation and Sales Statistics
Amend Purchase Order to Remote Site Services Inc. to the amount of $152,500 – Johnson moved and Phillips seconded to approve amending the Purchase Order to Remote Site Services Inc. to a total amount of $152,500. Discussion. Voice vote: Unanimous. Motion carried.
Nominating Committee names needed for appointment at November meeting – (Policy 40C) – Directors submitted names of members that have agreed to serve on the Nominating Committee. Cooper moved and Phillips seconded to approve the Nominating Committee as listed:
- Belen Cook
- Leif Stavig
- Tonya Zastrow
- Heidi Voss
- Christa Hoover
Voice vote: Unanimous. Motion carried. After a discussion the Board appointed Leif Stavig as Chair of the Nominating Committee.
Parker, Smith & Feed Insurance Coverage – Phillips moved and Cooper seconded to bind for coverage the Parker Smith & Feek insurance proposal for the not to exceed amount of $4,755.00. Discussion. Voice vote: Unanimous. Motion carried.
Bad Debt Write-offs – Phillips moved and Cook seconded to approve the bad debt write offs totaling $6,676.89 as presented.
David Calvert $ 535.63
Blanca Kurka $ 245.49
Cordova Hotel & Bar (Dorene Wickham) $1,137.53
Kenneth Sass $ 68.21
Timothy Guillemette $ 229.27
Shivonne Allen $ 98.94
Travis Davis $ 376.35
John Lawler $ 42.82
Clyde Woods $1,195.39
Jeffery Craig $1,448.58
Stacey Reilly $ 769.88
Tillman Atkins, Jr. $ 355.80
C. Ross Mullins $ 173.00
Merritt explained that capital credit checks for members with a bad debt cannot be kept by CEC unless their account has been written off as a bad debt. Discussion. Voice vote: Unanimous. Motion carried.
2019 Draft Strategic Plan (2025) & Operating Plan (2019) – Koplin reviewed the Strategic Plan and a discussion ensued.
2018 Mid-Term Plan Goals – Reviewed and discussed.
CEC’s Safety Program/Culture – Reviewed and discussed.
Plant Aging Information – noted.
CEO Travel – Noted.
NRECA Annual Meeting, Orlando, FL, March 10-13, 2019 – deferred to December meeting.
Alaska Power Association State Legislative Conference, Juneau, January 30-31, 2019 – Koplin mentioned Director training will be available. Discussion. Johnson moved and Faulkner seconded to authorize travel for three directors to attend the Alaska Power Association State Legislative Conference in Juneau. Voice vote: Unanimous. Motion carried.
Date for Christmas Decorating Contest – Discussion on when judging will take place.
- Policy #18B – Employee Development – noted
- Policy #19D – Employee Training Programs – noted
CEO Contract – Cooper moved and Phillips seconded to go into executive session at 8:53 p.m. to discuss matters, the immediate knowledge of which would clearly have an adverse effect on the finances of the cooperative.
Board came out of Executive Session at 9:08 p.m. No action was taken.
- 2019 Annual Meeting – Monday, March 25, 2019
- Bylaw Committee to meet and submit any proposed changes at the December Board meeting.
- Budget Presentation and December Board meeting date. A meeting was scheduled for Friday, December 7 at 6:00 p.m. for the budget presentation. The December regular Board meeting was rescheduled to Friday, December 28 at 6:00 p.m.
BOARD PENDING EVENTS CALENDAR – Noted
SUMMARY OF BOARD DIRECTION TO CEO
- January Board meeting – review long term goals
Cooper – Thank you – good meeting.
Phillips – Thank you to staff for all your hard work.
Cook – Great information
Johnson – Appreciate staff’s hard work.
Srb – Great job – keep up the great work.
Faulkner – we have an aggressive schedule. Staff does hard work.
Pegau – signed 800+ capital credit checks this month. It was fun and good to see the checks go out.
Phillips moved and Cooper seconded to adjourn the meeting at 9:25 p.m.
Date Approved Secretary/Treasurer