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Cordova Electric Cooperative > Minutes  > September 2018
Cordova Electric Cooperative

September 2018

CORDOVA ELECTRIC COOPERATIVE, INC. 

REGULAR BOARD MEETING 

September 19, 2018 

The Regular Meeting of the Board of Directors of Cordova Electric Cooperative, Inc. was called to order at 6:10 p.m. by Chairman Pegau. Members present were Cook, Cooper and Phillips. Directors Faulkner, Srb and Johnson were absent. 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. 

MEMBERSHIP PARTICIPATION 

None 

APPROVAL OF AGENDA 

Phillips moved and Cook seconded to approve the agenda as presented. 

Voice vote: Unanimous. Motion carried. 

CONSENT AGENDA 

Phillips moved and Cook seconded to approve the consent agenda that includes the following: 

  1. a) Minutes of August 29, 2018 Board Meeting 
  2. b) Related Party Check – Ravin Good Enterprises, Invoice #103428 for $129.00 

Voice vote: Unanimous. Motion carried. 

MANAGEMENT REPORTS 

CEO REPORTS 

CEO Written Report 

Interest Rates: The variable rate has continued its slow increase, with shorter term rates climbing but longer-term rates holding, there is now only a 1.06% gap between variable and 20-year rates, the lowest in at least 7 years of tracking, and a strong signal of a recession in the next 1-2 years. 

EES Project A virtual ground-breaking ceremony is being developed for the October 2018 time frame with a Sandia contractor. The design with Electric Power Systems is progressing well. A purchase order is included in this packet for the grounding study and design; it is a budgeted, but greater than $25,000, expense. I have also attached an updated battery budget to this report. We are finalizing the CoBank loan for $1,000,000 as budgeted and will probably draw down the funds in March of 2019. We are evaluating the least-cost option. 

RADIANCE Project: The RADIANCE project is progressing well. The additional Department of Energy (DOE) Funding for the battery energy storage system freed up additional funding in the RADIANCE project, and the Department of Energy has now approved a $350,000 advanced metering infrastructure (AMI) and electrical vehicle pilot from the DOE portion of the budget. The next quarterly Integrated Project Team (IPT) meeting is scheduled for October 10, 11 in Cordova, and Board members are welcome to attend. I will provide a detailed agenda as it is developed. 

CEO Travel: I will be presenting/attending the Charge conference in Iceland the end of this month seeking a market for renewable energy certificates, and meeting with Nukissiorfiit in Greenland while close by to review their project developments with hydro frequency control and share our project progress with their staff. In mid-October I will be meeting with our congressional delegation, attending the Electricity Advisory Committee meeting in Washington, D.C., and continuing on to Iceland to speak and moderate at the Arctic Circle Assembly. We will participate in an October 31-Nov. 1 Cybersecurity workshop in Anchorage, and have no travel plans for November or December.

Power Creek Inflatable Dam Replacement: Procurement and repairs are in progress. 

Solar Grant Application: The Solar Energy Technology Office has decided to re-publish the portion of the grant that we applied for, with a new deadline. We will resubmit for that grant. 

Power Creek Road Repairs Match: I have a teleconference with the Department of Transportation this week to discuss. 

Crater Lake Geotechnical Work: The geotechnical work has thrown us for several loops, but Craig has been tightly managing it to keep it within budget. This week CEC Board member Stephen Phillips, City Council Member Burton, and several Native Village of Eyak tribal council and elders, plus City permitting staff, were able to visit the site. One Cordova citizen was very agitated at the drilling work and told me he would be submitting letters of protest to CEC Board, City Council, and the newspaper. He showed up at the project site yesterday and took pictures and voiced his displeasure but did not directly interfere with the work. 

CEC Christmas Party: The CEC Christmas Party is scheduled for Friday, December 14 at the Reluctant Fisherman. 

Orca Plant Boiler Upgrade: A preliminary design has been completed and is under review by CEC staff. 

Generation/Distribution Departments Monthly Report August- September 2018 

ORCA Power Plant 

  • Replace both water pumps on engine 3. 
  • Rebuild AMOT valve on engine 3. 
  • Replace coolant fan sensor switches on engine 3. 
  • Replace generator end on engine 6. 
  • Working on electric boiler with Electric Power Systems. 

Power Creek Hydro Plant 

  • Tunnel inspection and bridge area decking is in progress; clearing brush and decking bridge to have access for coating repairs which is scheduled for Sept 24th. 
  • Routine maintenance check at the plant and forebay. 

Humpback Creek Hydro Plant 

  • Routine maintenance check at the plant and forebay. 
  • Brush clearing and penstock painting are in progress. 
  • Inspection of penstock between thrust block 6 and thrust block 10 are scheduled for September 25th. 

CEC Fleet Vehicles 

  • Unit 40 recall work has been completed. 

Buildings 

  • • Some light fixtures at Illanka have been replaced. 
  • • Plumbing has been repaired at Illanka. 
  • • Boiler inspector from our Insurance Company has inspected all boilers. 

Distribution 

  • Several new service requests. 
  • Finished installing fiber at Power Creek Hydro Project in the conduit. This was a large, very difficult project by the line crew and will fix the single largest cause of communications failures in the CEC system, a big step forward for system reliability and future operations. 

CEO Verbal Report 

Koplin mentioned item “a” under New Business is actually a budgeted item. 

ADMINISTRATIVE REPORTS 

Merritt reviewed the following reports: 

  • Revenue Report for August 
  • Cash Flow Analysis for August 
  • Cash Disbursements for August 
  • Bankcard Statement Summary 7/17/18 
  • Purchase Order Report 
  • Generation and Sales Statistics 

NEW BUSINESS 

Purchase Order #2102 to Electric Power Systems for $28,000 (budgeted) – Phillips moved and Cook seconded to approve Purchase Order #2102 to Electric Power Systems in the amount of $28,000. Discussion. Voice vote: Unanimous. Motion carried. 

Amend Purchase Order #2025 to John K Magee for an additional $191.29 – Cooper moved and Phillips seconded to amend Purchase Order #2025 to John K Magee for an additional $191.29, making the total for Purchase Order #2025 $10191.29. Discussion. Voice vote: Unanimous. Motion carried. 

CoBank Sharing Success Program – Koplin explained that more than one entity could receive a share of the CoBank Sharing Success Program donation and a discussion ensued. 

Cook moved and Pegau seconded to support both contribution requests, one in the amount of $8,000 to Cordova Arts and Pageants and one in the amount of $3,000 to the Cordova School District, with Cordova Electric Cooperative contributing an extra $1,000 to allow the full donation request match for each entity. Discussion. Voice vote: Unanimous. Motion carried. 

Policy #66 – Capital Credits – Phillips moved and Cook seconded to adopt Policy #66, Capital Credits, as amended. Discussion. Voice vote: Unanimous. Motion carried. 

UNFINISHED BUSINESS 

  • None

INFORMATION ITEMS 

  • CEO Travel – Noted 
  • Battery Energy Storage System Budget – Koplin reviewed the Battery Energy Storage System Budget and a discussion ensued. 

OTHER ITEMS 

Policy Review 

  • Policy #14B – Sale of Used Equipment – Noted 
  • Policy #15G – Records Management Policy – Board would like to see something in this policy regarding disposal of electronic devices. Koplin mentioned it may be in another policy and that staff would review and amend as necessary. 

EXECUTIVE SESSION 

  • None needed 

PENDING AGENDA 

  • Board Credentialed Cooperative Director training October 16-17, 2018 at CEC 
  • Nominating Committee names needed for October meeting 

BOARD PENDING EVENTS CALENDAR – Koplin mentioned the Revenue Requirement Study and a discussion ensued about having one in October. Board directed staff to move the Revenue Requirement Study back to April only. 

SUMMARY OF BOARD DIRECTION TO CEO 

  • Review and amend Policy 15G 

BOARD COMMENTS 

Cook – mentioned and explained the ACRE/CARE program and distributed contribution forms saying completed forms should be submitted to Bailer. Cook said he would be attending the NRECA Region IX meeting in Anchorage this month. Good meeting. 

Phillips – Good meeting. Thanks to staff. 

Cooper – Thank you to everyone. Good meeting. 

Pegau – Appreciates people coming prepared for the meeting. 

Phillips moved and Cooper seconded to adjourn the meeting at 6:50 p.m. 

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