CORDOVA ELECTRIC COOPERATIVE, INC.
November 25, 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. Due to the COVID-19 pandemic Directors and staff have the option of participating via gotomeeting. Director’s Pegau, Cook, Phillips, Beedle, Cooper, Ranney and Campbell participated via gotomeeting. CEO Koplin, Manager of Generation and Distribution Newlun, Manager of Administration and Finance Merritt, and Executive Assistant/HR Bailer (Recorder) participated via gotomeeting.
APPROVAL OF AGENDA
Phillips moved and Cook seconded to approve the Agenda as presented. Pegau asked to amend the motion to remove item “d” under New Business, Purchase Order #2282 to Copper Hwy Heating, as he was advised it was not needed at this time, seconded by Ranney. Roll call vote on the amendment: Unanimous. Motion carried. Roll call vote on main motion: Unanimous. Motion carried.
Phillips moved and Cooper seconded to approve the consent agenda that includes the following:
- a) Minutes of Meeting of October 28, 2020
- b) Minutes of Special Meeting of November 14, 2020
- c) Related Party Check – Bailer’s Cabinet & Trim
- d) Estate Retirements
Roll call vote: Unanimous. Motion carried.
CEO Written Report
CEC Connection of Private Power Producers: A rate schedule 600 update is included as scope for the rate study RFP that has been distributed to 13 vendors. Rate study proposals are being received.
Electrify Alaska Conference: The conference was a good success in terms of content and engagement, though attendance was low. Sponsorships and enrollments are expected to cover the full cost of the conference.
Hydro Kinetic Grant Application: This grant deadline has been extended again to February 2021.
AEA Round 13 Grant Application: CEC staff submitted a hydro assessment application Sept. 28th.
Solar Assessment Update: Is somewhat on hold as we focus work effort on Power Creek dam replacement.
Power Creek Dam Replacement: The work is progressing slowly but surely and today, Thursday November 19th, is a key day for getting the river dewatered and dam removal underway. Photos at the end of this report.
BESS Funding Summary: The priority is currently reimbursement for the $220,000 PNNL balance.
Orca Boiler Update: During cold spells, the remaining diesel boiler at Orca Plant does not appear sufficient for plant and generator to keep warm. Some modifications to the heat loops helped substantially, but we will have to replace the backup diesel boiler. An action item is included on the agenda for the boiler cost. CEC will install the boiler.
Payroll Protection Program. We received news that the forgiveness application was approved by CoBank for submittal to the Small Business Administration (SBA) for their 90-day review.
CEO Travel: During my travel to Anchorage last week I had an unexpected near contact with a positive COVID case and have been working from home out of an abundance of caution.
Rate Study: We received one responsive proposal. Emma and I will review the proposal and bring a recommendation to the December regular Board meeting.
2021 Budget: Will be presented at the Board meeting for questions and discussions. The Board can then review, ask questions and suggest modifications through the December regular meeting (or special meeting if desired) where it is considered for adoption.
Operations Report (Oct 24-Nov 19): Most of operations focus for the past 3 weeks has been on planning and staging for the Power Creek Dam replacement. Other work in progress included repairs to Unit 5 Cat (idler bearing), service disconnects and completion of the Fleming Spit culvert replacement work by line crew, lots of locates all over the system for CTC contractors installing new fiber optics, controls and SCADA system improvements and training with Trever, and budget and work plan refinements. Regular maintenance and capital projects like adding studded tires to the fleet, completion of remaining new electrical service installations, and plant maintenance were completed as well.
CEO Verbal Report
Koplin reported the new dam at Power Creek is installed and showed photos of the project. Koplin also explained why the Purchase Order for a new boiler was removed from the agenda. Koplin said the Electrify Alaska! Virtual Conference was recorded and the link will be emailed to the Board.
Merritt reviewed and answered questions on the following reports:
- Financial Report for 10/31/2020
- Revenue Report for October
- Cash Flow Report for October
- Cash Disbursements for October
- Purchase Order Report
- Generation & Sales Statistics
Policy 15I – Records Retention Policy & Policy 68 – Board Meeting Recordings – Bailer reviewed the changes. Cooper moved and Phillips seconded to approve Policy 15I – Records Retention Policy as modified and subsequently retire Policy 68 – Board Meeting Recordings as it is now included in Policy 15I. Roll call vote: Unanimous. Motion carried.
Purchase Order #2281 to Saft America Inc. for $31,819.00 – Phillips moved and Cooper seconded to approve the extended warranty for the SAFT BESS system for a not to exceed amount of $31,819 for May 2020 through April 2021. Discussion on warranty, time frame and what it covers. Roll call vote: Unanimous. Motion carried.
Bylaw Recommendations – Cooper, Chair of the Bylaw Committee, said the Bylaw Committee met with Counsel to discuss the presented suite of recommended updates to the current Bylaws and reviewed the proposed Bylaw edits including Article III, Section 1; Article III, Section 2; Article III, Section 3; Article III, Section 4; Article III, Section 6; Article V, Section 1; Article V, Section 3; Article V, Section 4; and Article V, Section 7. Phillips moved and Ranney seconded to accept the Bylaw Committee report and forward recommendations to the membership. Discussion on the proposed changes. Beedle moved to amend the motion to reword Article III, Section 1 and Section 2 to remove “similar communication” to read “thru other electronic communication media”. Hearing no second the amended motion failed. Discussion on Article IV, Section 8 – Employment of Board Members. Beedle moved to amend the motion to modify Article IV, Section 8 – Employment of Board Members to strike the one-year period of a Director leaving the Board before hiring any close relative, seconded by Ranney. Discussion on the proposed amendment. Roll call vote on the amendment: 2 – yea (Beedle and Pegau), 5-nay. Motion fails. Roll call vote on the main motion: 6 – yea, 1 – nay (Beedle). Motion carried.
2021 Proposed Budget/Strategic Plan – Pegau said the Budget is on the Agenda to review and discuss and will be included on the December Agenda. He mentioned a Special Meeting can be scheduled to review/discuss the Budget more if the Board would like. Koplin reviewed the Capital Budget and Merritt reviewed the Operations Budget. Discussion on various Budget items.
CEO Travel – noted
Board Attendance at Regular Meetings – noted
- Policy 1G – Functions of the Board of Directors
- Policy 2D – Delegations from the Board of Directors to the CEO
Christmas Decorating Contest – Date for Judging – Pegau said we need to discuss a date and a process for judging. Bailer will supply the Board a judging sheet to be completed and returned to her by December 31, 2020.
December Board Meeting Date – Discussion on the date for the December meeting and a possible Special Meeting for more Budget review. Board elected to have a Special Meeting on December 15 at 6:00 p.m. to review the Budget, and keep the regular December meeting date to December 23, 2020.
EXECUTIVE SESSION – none needed
- Review Board Evaluation Quarterly (January/April/July/October)
- CEC Christmas Party – Powder House – December 4, 2020 (Dinner at 6:30 p.m.)
- 2021 Annual Meeting – March 22 (Monday)
BOARD PENDING EVENTS CALENDAR
SUMMARY OF BOARD DIRECTION TO CEO
- Revisions to Budget and resend to Board
- Email the Board the link to the recording of the Electrify AK! Virtual Conference
- Add Strategic Plan discussion on the December agenda
- Schedule Special Budget Meeting for December 15, 2020 at 6:00 p.m.
Ranney – Interested in the Power Creek hydro project and hiked out there. Kuddos to Power Creek crew
Cooper – Kuddos to crew and staff. Power Creek project was pulled out successfully.
Phillips – Great job and tremendous work on Power Creek project. Thank you to staff and Board.
Cook – Kuddos on Power Creek dam project
Beedle – Kuddos on Power Creek dam project.
Campbell – Kuddos to everyone on Power Creek dam project. Welcome to Trever Kudrna.
Pegau – Kuddos to everyone on getting dam replaced – was quite a challenge and was done safely.
There being no further business the meeting adjourned at 8:20 p.m.