CORDOVA ELECTRIC COOPERATIVE, INC.
REGULAR BOARD MEETING
September 25, 2019
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. Members present were Cook, Cooper, Faulkner, Johnson, and Ranney. Phillips participated via teleconference. Also present were CEO Koplin, Manager of Generation and Distribution Newlun, Executive Assistant/HR Bailer (Recorder), and Project and Technology Coordinator Kuntz.
APPROVAL OF AGENDA
Johnson moved and Cook seconded to approve the Agenda as presented. Faulkner asked about the appointment of a member to the vacant Director seat. Discussion. Faulkner moved to amend the agenda to add an item, number 4a, for the appointment of a member to the vacant Director seat seconded by Cooper. Voice vote: Unanimous. Motion carried.
Pegau mentioned he would like to defer the Crater Lake Go/No Go discussion under New Business to a time when all Directors were present, adding that Phillips was out of town and getting to a place where he could teleconference into the meeting. Board concurred.
APPOINTMENT OF BOARD DIRECTOR
Cooper moved and Cook seconded to appoint Stephen Phillips to the vacant Director seat. Voice vote: Unanimous.
Johnson moved and Cooper seconded to approve the consent agenda that includes the following:
- a) Minutes of August 28, 2019 Board Meeting
- b) Estate Payments
Voice vote: Unanimous. Motion carried.
CEO Written Report
Humpback Creek Penstock Rehabilitation: Humpback Creek is operating well with the rain; we accomplished significant maintenance this year. The remaining penstock rehabilitation work can be completed in a few weeks and then we are done. We will recommend this in the 2020 budget.
Crater Lake Update and Go/No Go: A cover memo provides background and options for Board consideration.
Power Creek Dam Replacement Budget Modification: We are requesting to increase amount of the maintenance contract covered by this Purchase Order to replenish the amount that was used for standby time that unexpectedly occurred this year due to weather conditions.
CTC Collaboration: I am scheduled to meet with CTC CEO Jeremiah Beckett the week of Sept. 30th.
Interest Rates: The variable rate is holding steady while short term have risen to erase the sharp drops of last week.
BESS Update: There are still a few programming and controls modifications to complete, and a battery array to replace when we perform the six-month maintenance work later this fall.
Power Creek Road Repairs: I had a teleconference with the Department of Transportation as construction nears completion to share concerns with the long-term viability of the repair. We will monitor it as we drive the road.
Tariff Revisions: We still need to prepare a draft revision to account for billing errors similar to Camtu’s.
Orca Boiler Update: The boiler and mechanical (water piping connections) are complete; the wiring and controls work will be completed by CEC employees.
RADIANCE Project Update: I am in Albuquerque for the RADIANCE technical interchange meetings yesterday and today (Thu/Fri) that went well. I will provide an update to the Board and a recommendation for a go or no-go decision to the Board for the October meeting. I am staying through Monday and Tuesday for Energy Storage Peer Review meetings Monday and Tuesday and have several side meetings scheduled with the labs and department of energy staff.
CEC HQ Building Update: The asbestos present was very minimal and workable without specialist handling, and we are scheduling the water line repairs to avoid a potentially serious water leak in the basement of the headquarters building. The RADIANCE project helped cover the transportation costs for the design and inspection.
CEO Travel: My next Department of Energy Electricity Advisory Committee meeting is October 16th and 17th. I was asked by Senate Energy and Natural Resources committee to present/participate in Arctic Circle Assembly immediately preceding the EAC meeting so I will be leaving early to attend that event.
CEO Verbal Report
Koplin spoke about the RADIANCE technical interchange meetings he attended last week.
Chairman Pegau apologized for missing this item and offered participating members the opportunity to address the Board. Various CEC members were present and spoke about the Crater Lake Water and Power Project. Director Ranney, declaring a conflict of interest with the Crater Lake Water and Power Project, excused himself from the Director table and spoke about the Project as a member.
The following reports were reviewed and Koplin answered questions.
- Financial Reports 8/31/19
- Revenue Report for August
- Cash Flow Analysis for August
- Cash Disbursements for August
- Purchase Order Report
- Generation and Sales Statistics
CoBank Sharing Success Program – Pegau declared a conflict of interest with this item, asked Vice Chair Cook to preside over the meeting, and excused himself from the table. Cook said two applications were received. Discussion. Cooper moved and Johnson seconded to approve a donation in the amount of $1,000 to the Mt Eccles Elementary School request and $6,500 to the Prince William Sound Science Center request. Voice vote: Unanimous. Motion carried.
Pegau rejoined the meeting as the Chair.
Phillips joined the meeting via teleconference at 6:45 p.m.
Crater Lake Go / No-Go – Ranney declared a conflict of interest and excused himself from the room. Cook moved and Cooper seconded to suspend the Crater Lake Water and Power Project. Discussion. Voice vote: Unanimous. Motion carried.
Ranney rejoined the meeting as a Director.
Revise Purchase Order #2132 to McMillen, LLC, from $500,000 to $550,000 – Johnson moved and Cook seconded to approve modification of the McMillen Jacobs Purchase Order #2132 for Power Creek Dam Replacement from $500,000 to a not to exceed amount of $550,000. Discussion. Voice vote: Unanimous. Motion carried.
Rate Analysis – Koplin explained the study and graphs. Discussion. No action taken.
Approval of CEO Contract – Pegau mentioned this is the Contract the Board reviewed and discussed in Executive Session at the August Board meeting. Cooper moved and Cook seconded to approve the CEO Contract as discussed at the August 28, 2019 regular Board meeting in Executive Session. Voice vote: Unanimous. Motion carried.
Bylaw Recommendations – Upon question the Bylaw Committee consisting of Directors Johnson, Ranney, and Phillips, said they did not meet yet, therefore, there are no recommendations at this time. Chairman Pegau asked if someone would be Chair of the Committee and Johnson agreed to the take the position.
Resolution 19-03 – Capital Credits – Johnson moved and Cooper seconded to approve Resolution 19-03 authorizing a general retirement of capital credits allocated to patrons for 50% of 1981 and 18% of 2016. Discussion. Voice vote: Unanimous. Motion carried.
CEO Travel – Discussion regarding future travel.
- Policy #39C – Workplace Harassment – Discussion
- Policy #40C – Functions of the Nominating Committee – Discussion
- Review Board Evaluation Quarterly (January/April/July/October)
- Nominating Committee names needed for October meeting
- CFC Director Training – Commitment to Excellence, Thursday, November 21, 2019, 1:00-5:00, CEC Boardroom
- Policy 38D – Comprehensive PCB Policy
BOARD PENDING EVENTS CALENDAR
Discussion on timing for the budget presentation.
SUMMARY OF BOARD DIRECTION TO CEO
- Email Board information regarding CFC training
Phillips – It’s great to be back on the Board and I’m glad to be here. Thank you to the Board and Staff for your hard work.
Faulkner – Welcomed Phillips back on the Board. Good conversations tonight. Was good to see members at the meeting, I appreciate their input.
Johnson – no comments
Cook – Thanked Phillips for taking the Board seat. Appreciates Staff’s information.
Cooper – Welcomed back Phillips. Thanked staff for work on the Capital Credit project and their efforts in getting to this point. The Crater Lake Water and Power Project was a tough decision. Appreciates staff.
Ranney – no comments
Pegau – Welcomed Phillips back. Thanked member for staying for the full meeting and said he appreciates member participation.
Cooper moved to adjourn at 7:50 p.m. seconded by Johnson.
Date Approved Secretary/Treasurer