CORDOVA ELECTRIC COOPERATIVE, INC.
REGULAR BOARD MEETING
October 25, 2017
The Regular Meeting of the Board of Directors of Cordova Electric Cooperative, Inc. was called to order at 6:00 p.m. by Vice Chair Cook. Members present were Faulkner and Little. Director Pegau participated via teleconference. Director Cooper joined at 7:00 p.m. Director Wooden was absent. Also present were CEO Koplin, Manager of Administration and Finance Merritt, Manager of Generation and Distribution Newlun, Executive Assistant/HR Coordinator Bailer (Recorder), and Project & Technology Coordinator Kuntz.
Stephen Phillips was present and thanked Bailer for the invite.
APPROVAL OF AGENDA
It was moved by Faulkner and seconded by Little to approve the agenda as presented.
Voice vote: Unanimous. Motion carried.
SAFETY AWARD PRESENTATION BY MEL HUTCHINSON, APA – This was presented at the September meeting.
It was moved by Faulkner and seconded by Little to approve the consent agenda that includes the following:
- Minutes of September 27, 2017 Board Meeting
- Approve New Members – 7/01/17-9/30/17
Voice vote: Unanimous. Motion carried.
CEO Written Report
Crater Lake Update: We received the Army Corp Permit. This is a big win that allows us to pursue federal funding. Less positive was a meeting with City Manager Lanning, who indicated the City will not be able to participate financially in any efforts this year. There are some potential alternative funding streams available, and staff will recommend in the 2018 budget to proceed with geotechnical assessment, pending a reasonable match of at least 40%.
Interest Rates: I have reviewed interest rate projections and will be recommending a modest increase in our budgeted blended rate for 2018; anticipating that we may place some fixes, but will not fix our entire portfolio.
K&H, LLC Lease Update: Final copies have been executed and submitted to the District Recorder’s office for recording.
CEC HQ Building: I met with the Native Village of Eyak and recommend a brief executive session to discuss.
Electric Energy Storage (EES) Project Update: I am in discussions with the Department of Energy to consider alternative funding of Electric Energy Storage.
Grid Modernization Laboratory Consortium (GMLC): Idaho National Lab project lead Rob Hovsapian indicated late October or early November to have contracts and final agreements drafted for signature.
Electric Vehicle Charging Stations: Staking is complete for the charging stations, City permits are in progress for a late October or early November installation as line crew time allows.
Power Creek Road Washout: There is an Alaska DOT meeting being scheduled for next Monday, Tuesday, or Wednesday. I will update you on the results of that meeting at the board meeting.
Communications: We have largely resolved the Power Creek communications failures, tracking it to a software data burst in our security software, and deteriorating splices. However, the aged infrastructure is in terrible shape and we plan to bring Power Creek fiber optics as a 2018 budget item.
Tariff Schedule 600, 700, 4.7 and 4.8: After further review, I started streamlining these sections of the Tariff into one article and rate class. This will be worth additional effort and pay dividends in clarity to the Board, staff, and members of CEC. I anticipate a draft by November or December.
Our line crew is doing an outstanding job of installing the new conduit infrastructure in the alleyway between Browning and Council. They are about 75% done with the project. This will improve the reliability of our system for many years.
I participated in SPCC (Spill Prevention Containment Countermeasure Plan) on Scene Commander training with our consultant, Rosie Nethercott of Integrity Environmental LLC. I also inquired about the new tank reporting rule. She responded that we do need to report all of our tanks of 1,000 gallons or above. I have begun to compile the information.
Hutch from ARECA has been through for his annual inspection. He delivered an award for second place in the safety for the year from NWPPA at the CEC Board meeting.
ORCA Power Plant
- The Auto flush system for PC on the SCADA system worked well through the storm season.
- David Peterson & Brian Vesely from MSI (EMD) came for a visit; good info about unit 7.
- Battery Bank failed and several cases are split. Still holding a charge but needs replaced as soon as possible.
- New Lube Oil tank is in place.
Power Creek Hydro Plant
- Covers for Sluice gate access, Sluice access and Rotork controls are fabricated and installed.
- The PC road was washed out and rebuilt 5 times; had to take a helicopter to work at PC.
- New cameras for PC Forebay have been installed.
Humpback Creek Hydro Plant
- New crane hoist and other repairs in progress
- Had to repair the compressor for the Obermeyer gate.
CEC Fleet Vehicles
- Getting studded tires changed over.
- We have recalls on our Dodges for safety equipment and a recall on a Chevy for other issues.
- General maintenance at Ilanka clinic and Eyak service center.
- Our NECA (temporary lineman) had to return home so we released him with good review.
- The alleyway project is nearing completion
- Locates and street light maintenance
- Staking and design has been completed for electric vehicle charging stations.
- Finish new service for CTC tower at Orca Lodge area.
- Advertising for another NECA due to personnel vacations and medical reasons.
I had a teleconference meeting with Douglas Quist of Stantec and Bill O’Connel of the ADEC regarding the Eyak Service Center spill remediation. Doug will send a quote for sampling and we will then discuss if the case can be closed out. I attended the APA Annual Meeting in Kodiak. May have found a solution to our Communications issues with the CAT van. Had an opportunity to meet with several people and tour the Kodiak Electric Association Wind, Battery and flywheel facilities. SN
CEO Leave: I will be on personal leave October 26th-November 9th hunting near Kodiak Island and have appointed Scott Newlun as acting CEO pending Board approval.
CEO Verbal Report
Koplin mentioned Purchase Order #1993 to Electric Power Systems under New Business and explained “auto-flush”, how it relates to the Power Creek Hydroelectric Project, the cost to upgrade the automation system, and savings to CEC for implementing this system.
Koplin said he participated in a Department of Transportation (DOT) meeting regarding the Power Creek road wash-outs. Discussion.
Koplin mentioned he also participated in a kickoff teleconference regarding the Grid Modernization Laboratory Consortium (GMLC) grant and that CEC has received authorization to order and purchase items for this project. Koplin said GMLC personnel plan to be on site in Cordova in late November or early December and Koplin reminded them the Board would like to meet with them. Discussion.
A discussion ensued regarding the electric vehicle charging stations. Koplin said CEC will install them at the Cordova Center, one in the upper lot and one in the lower lot. He mentioned the City will waive the permit fees associated with this installation and will advertise the stations are at the Center.
Merritt reviewed the following reports:
- Financial Reports for September
- Cash Flow Analysis for September
- Revenue Report for September
- Cash Disbursements for September
- Generation and Sales Statistics
Appoint New Board Director – Cook mentioned two letters of interest were received. Stephen Phillips gave a statement on his interest in the vacant Director seat. Cook mentioned Chapek was out of town on business. Directors voted by secret ballot and ballots were tallied. Cook said Phillips was voted in, and thereby appointed him as the new Board Director. Cook invited Phillips to join the meeting and Directors and staff welcomed Phillips to the Board. Phillips thanked Directors and said it’s a pleasure to be here.
Appoint Scholarship Committee – Faulkner moved and Little seconded to appoint Joe Cook, Patience Faulkner, and Debby Collins to the CEC Scholarship Committee. Faulkner mentioned these members have served on this Committee since inception and work well together. Voice vote: Unanimous. Motion carried. Cook said the Committee is open to anyone that would like to join.
Agreement for Fairfield Inn & Suites and Crowne Plaza Hotel – Faulkner moved and Little Seconded to approve the Fairfield Inn & Suites and Crowne Plaza Rate Agreements for 2018 as presented. Cook asked about the Captain Cook Hotel and Bailer said CEC continues to have an agreement with the Captain Cook with the same rates as in the past. Voice vote: Unanimous. Motion carried. Upon question Bailer said Directors and employees can receive the same rates for personal travel.
Purchase Order #1993 to Electric Power Systems for $11,400 non-(budgeted item) – Little moved and Faulkner seconded to approve Purchase Order #1993 to Electric Power Systems for $11,400. Discussion. Voice vote: Unanimous. Motion carried.
Purchase Order #1996 to Enersys Delaware Inc for $35,000 (non-budgeted item) – Little moved and Faulkner seconded to approve Purchase Order #1996 to Enersys for the not to exceed amount of $35,000. Discussion. Voice vote: Unanimous. Motion carried.
Snow Removal Award – Little moved and Faulkner seconded to award the 2017/2018 snow removal contract for Power Creek and the CEC Cordova facilities to Wilson Construction. Discussion. Voice vote: Unanimous. Motion carried.
Acting CEO – October 26 – November 8, 2017 – Little moved and Faulkner seconded to approve Scott Newlun as acting CEO from October 26 through November 9, 2017. Voice vote: Unanimous. Motion carried.
Review Strategic/Operating Plan – Koplin reviewed the draft Strategic Plan (2025) and Operating Plan (2018). Koplin said this is an aggressive list and some items may be removed during the budget review. He also mentioned unexpected items are not on the list as it is a picture in time and lists items he’s like to accomplish in 2018. Discussion.
Revenue Requirement Study – Merritt reviewed the Revenue Requirement study. Discussion. Faulkner moved and Little seconded to leave Cordova Electric Cooperative rates as they are. Voice vote: 5 yea – 1 nay (Pegau). Motion carried.
Nominating Committee Names Needed for Appointment at November Meeting – Pegau mentioned he asked Directors to have names at this meeting. Discussion. Directors were asked to notify Bailer at least two weeks before the November meeting names of members that agreed to serve on the Nominating Committee.
CEO Travel – Noted
CEO Evaluation Form – Pegau said he asked to have this on the Board agenda so Directors would have the opportunity to review the form. Discussion.
Review Equity Management Plan – Board reviewed the Equity Management Plan (Resolution 13-04).
Christmas Decorating Contest – The Board reviewed the categories and agreed to the recommendations presented to change some of the categories.
2018 Annual Meeting – schedule date – The Board reviewed dates for the 2018 Annual Meeting and scheduled the Meeting for Monday, March 19, 2018.
November/December Board Meeting Dates – The Board looked at the dates for the November and December regular meetings and discussed changing them due to the holidays. Discussion. The November meeting will be rescheduled to Thursday, November 16, 2017 and the December meeting will stay at the regular date of December 27, 2017.
December Budget presentation – schedule date – the Board decided to hold a special meeting on December 13, 2017 for the budget presentation.
- Policy #57B – Employee Dress Code
- Policy #58 – Exempt Employee Practices
Headquarters Building Disposal to NVE – Faulkner disclosed she has a conflict of interest. Koplin said in reviewing this item it is not necessary to go into executive session. Koplin discussed the options for the CEC headquarters building, value per assessments and appraisals, outside interest in the building, and discussed some recommendations. Board agreed with staff’s recommendation to advertise the building for competitive bid, with a stipulation that CEC can lease part for office space.
- Board Site Visits and Infrastructure Assessment
- Board Self-Evaluation & Development 2017 – Performance Elements – Review
- Board Training, November 6-8, 2017, CEC Boardroom (1/2 day on Nov. 8)
BOARD PENDING EVENTS CALENDAR
SUMMARY OF BOARD DIRECTION TO CEO
- Provide an analysis of options to replace Cat Unit 6 versus repairing it.
- Review Equity Management Plan and make recommendations
- Headquarters building – advertise building per policy
Pegau – Thanks to everyone. Am glad to participate while traveling. Welcomed Stephen to the Board.
Little – Thanked staff for putting everything together for the meeting. It was a good meeting. Welcomed Stephen.
Faulkner – Thanked staff for all their work. Welcomed Stephen.
Phillips – Is looking forward to the future
Cooper – Apologized for being late. Would like video conferencing for Board meetings with options for viewing presentations.
Cook – Thanked everyone for showing up and enjoyed sitting in for the Chair tonight. Welcomed Stephen. Kudos to staff.
Faulkner moved and Little seconded to adjourn at 7:58 p.m.