CORDOVA ELECTRIC COOPERATIVE, INC.
October 28, 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 Phillips was present. Director’s Pegau, Cook, Cooper, Ranney and Beedle participated via gotomeeting. Director Campbell was absent. CEO Koplin, Manager of Generation and Distribution Newlun, and Executive Assistant/HR Bailer (Recorder) participated in person. Manager of Administration and Finance Merritt participated via gotomeeting.
APPROVAL OF AGENDA
Phillips moved and Cook seconded to approve the Agenda as presented. Roll call vote: Unanimous. Motion carried.
Phillips moved and Ranney seconded to approve the consent agenda that includes the following:
- a) Minutes of Meeting of September 23, 2020
- b) Approve New Members 7/1/2020 – 9/30/2020
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.
Electrify Alaska Conference: We have been working to organize this conference coming up soon on Nov. 16, 17, 18. A socially distanced local event (40 people well-spaced in North Star Theatre) is being held at the Cordova Center to meet the main purpose – showcase exciting electric energy opportunities to CEC’s customers. The ArKtiKa coordinator contractor did take more effort, but we were able to get Dept of Energy to co-host the conference and cover the full cost of the virtual platform to more than offset any coordination work.
Hydro Kinetic Grant Application: This grant deadline has been extended to December.
Strategic Planning: I am making plan updates from the September meeting and they should be updated in your drop boxes by meeting time. I am taking personal leave for appointments in Anchorage on Monday and Tuesday but will have a couple short meetings with Chugach Alaska Corp and Alaska Energy Authority while there.
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: We are meeting with McMillen to refine work timelines for dam replacement. Flows are dropping and we may be able to perform the work under higher flows than originally expected. I may have an update by Board meeting with a tentative schedule.
BESS Funding Summary: The priority is currently reimbursement for the $220,000 PNNL balance.
Orca Boiler Update: The new electric boiler continues to perform well, saving significant fuel. However, one of the two diesel boilers has failed, and the single boiler may not be able to supply the heating loads by itself. It is costly and inefficient to run the electric boiler on diesel-generated electricity and a replacement diesel boiler may be necessary.
Payroll Protection Program. Emma has applied for PP Program forgiveness.
CEO Travel: Oct 26, 27 personal leave to Anchorage by ferry and back by plane.
CEO Updates to Board: Requests included adding a headquarters plan, an engineering 2nd opinion to HBC thrust block work, a diesel replacement/upgrade plan, a hydro assessment, a solar installation, and Second Street Repairs to the operation plan. These will be added to the plan and emailed/placed in the Drop Box for the Board next week. The correct copy of Policy 66 is included in this packet as requested, and staff will work with counsel (heavy workload with COVID) to address cyber and social media behaviors. We reviewed the Bylaws and unfortunately being a Board member disqualifies family members for applying for employment for a full year after leaving the Board.
Capital Credit Escheatment: CEC is accumulating unpaid capital credits that may be deposited into the CEC scholarship program (or otherwise allocated). Due to the relatively small amounts of unclaimed credits, claims still periodically trickling in, and the administrative overhead of the escheatment, staff recommends a five-year cycle to commence in 2022. The budget, audit, and rate study will be significant admin and office lifts over the next few months.
Power Outage: The 10/20/20 power outage last Tuesday started as a dig-in of CEC cables. The breaker for Humpback Creek should have opened and isolated the problem. However, the diesel cats both tripped offline causing a cascading system outage. Unit 7 was started, and circuits restored, but then a radiator fan motor fault caused Unit 7 diesel to drop offline causing another outage. The causes and sequence of events were analyzed and modifications to protective devices, radiator fan, and breakers are in progress to implement improvements.
Operations Report: I will provide a verbal update at the meeting.
CEO Verbal Report
Koplin said he updated the Work Plan and emailed it to the Board today. He mentioned Kuntz resigned and CEC hired Trever Kundrna as the Technology Manager. Koplin also gave an operational update including the electric boiler.
Merritt reviewed and answered questions on the following reports:
- Financial Report for 9/30/2020
- Revenue Report for September
- Historical Revenue Breakdown – Supplement
- Cash Flow Report for September
- Cash Disbursements for September
- Purchase Order Report
- Generation & Sales Statistics
- CoBank Loan Summary
Snow Removal Award – Beedle moved and Cook seconded to award the 2020/2021 snow removal and sanding contracts for the Cordova facilities and Power Creek Hydroelectric Project to Wilson Construction. Discussion on bids. Roll call vote: Unanimous. Motion carried.
Scholarship Committee – Pegau asked if anyone was willing to serve on the Scholarship Committee. Pegau moved and Cook seconded to appoint Scott Pegau, Robert Beedle, Steve Ranney and Rob Campbell to the Scholarship Committee. Roll call vote: Unanimous. Motion carried.
Appoint Nominating Committee & Chair for Committee – Pegau moved and Cooper seconded to approve the Nominating Committee as follows: Arissa Pearson, Leif Stavig, Dan Logan, Belen Cook, and Tom Bailer. Roll call vote: Unanimous. Motion carried. Dan Logan was nominated for Chair of this Committee.
Policy 67A – Code of Conduct – Koplin explained the suggested revisions to the Policy. Phillips moved and Ranney seconded to approve Policy 67A – Code of Conduct, as presented. Roll call vote: Unanimous. Motion carried.
Revenue Requirement Analysis – Pegau mentioned this information was also included in the September Agenda packet. Discussion on the analysis.
Board Evaluation – Review for 3rd Quarter – Board reviewed the evaluation.
CEO Travel – noted
Board Attendance at Regular Meetings – noted
Christmas Decorating Contest – Categories – A discussion ensued on current categories and editing the category list. Bailer mentioned CEC also sponsors a decorating contest for the Mt Eccles Elementary School and Cordova Jr/Sr High School.
NRECA Board Training Options – Discussion on the enclosed NRECA virtual training opportunities and courses the Directors have participated in.
Alaska Power Association/ARECA Insurance Exchange Virtual Annual Meeting November 3-5, 2020 – Board reviewed the agenda and various Directors asked to be registered for the Meeting.
CoBank Sharing Success Awards – Koplin said this is for Board information regarding who in the past was presented with CEC/CoBank Sharing Success awards, the program the award was for, and the amount of the award.
- Policy #66 – Capital Credits – Discussed
- Policy #68 – Board Meeting Recordings – Pegau suggested adding this to the CEC Records Retention Policy (Records Management Policy)
EXECUTIVE SESSION – none needed
- Review Board Evaluation Quarterly (January/April/July/October)
- Bylaw Committee to meet to discuss any Bylaw changes needed – Bylaw Committee Chair mentioned a meeting has been scheduled for November 10, 2020.
BOARD PENDING EVENTS CALENDAR
SUMMARY OF BOARD DIRECTION TO CEO
- Add “Communication Strategy” to pending agenda
- Email Board the list of Director completed NRECA training
- Email Board the NRECA CCD courses and descriptions
- Include Policy 68 – Bd Mtg Recordings with the Records Retention Policy
Cook – Good meeting – thank you.
Beedle – Keep up the good work Board, staff, and crew.
Phillips – Great meeting. Appreciate the time and effort of the staff and Board.
Ranney – Thanks everyone
Cooper – Thank you to the Board and staff.
Pegau – Thank you everyone.
There being no further business the meeting adjourned at 8:52 p.m.