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Cordova Electric Cooperative

September 2020

Final

CORDOVA ELECTRIC COOPERATIVE, INC.

BOARD MEETING

September 23, 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, Ranney, Beedle, and Pegau were present. Director’s Cook, Campbell and Cooper participated via gotomeeting. CEO Koplin and Manager of Generation and Distribution Newlun participated in person. Manager of Administration and Finance Merritt, Executive Assistant/HR Bailer (Recorder), and Project and Technology Manager Kuntz participated via gotomeeting.

MEMBERSHIP PARTICIPATION

Paul Trumblee was present.

APPROVAL OF AGENDA

Phillips moved and Ranney seconded to approve the Agenda as presented. Roll call vote: Unanimous. Motion carried.

COBANK SHARING SUCCESS AWARD PRESENTATION – Chairman Pegau presented Paul Trumblee, who is representing the Cordova Volunteer Fire Department (CVFD), a check from both CoBank and Cordova Electric Cooperative to assist them in purchasing fire retardant clothing for the volunteer fire fighters/EMS personnell. Trumblee thanked the Board on behalf of the CVFD and the community for this donation.

CONSENT AGENDA

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

  1. a) Minutes of Meeting of August 26, 2020

Roll call vote: Unanimous. Motion carried.

MANAGEMENT REPORTS

CEO REPORT

CEO Written Report

CEC Connection of Private Power Producers: An updated rate class 600 is being included in the scope of work to be developed by rate setting professionals who are experienced in this arena.

Elevator Removal: Phase 1 and some of Phase 2 elevator removal work has been substantially completed for 2020. The elevator, rotten walls, and thousands of pounds of remnant elevator parts and equipment have been removed, the roof repaired and resealed during dry weather before rain arrived. The area is now stabilized and safe.

Electrify Alaska Conference: The conference will be hosted as a virtual event November 16th, 17th, and 18th. We will work to make the virtual version accessible to Cordova residents.

Hydro Kinetic Grant Application: Herb Williams of Keuka Energy visited Cordova this week and met with local machinists and toured the community. He likes the community and resources and appears ready to invest in building tidal energy generators in Cordova, even if the grant is not approved. There was strong interest from local machinist.

Strategic Planning: I have included a draft 2021 operating plan for board consideration/discussion along with the current strategic plan for meeting discussion.

AEA Round 13 Grant Application: CEC staff have been preparing a grant application, including budgetary estimates, for assessments of hydro storage alternatives near Cordova, due Sept. 28th.

Solar Grant Update: CEC participated in a finalist call with Department of Energy this month. We will provide an update when awards are announced and are hopeful the project will be awarded.

CEO pandemic-related work time: This will be my final report; my participation is now minimal.

Power Creek Dam Replacement: We continue to watch for a weather window to complete this work this fall as winter approaches and stream flows subside.

BESS Funding Summary: We received final $80,000 Sandia payment, our final invoice from SAFT for recent battery maintenance work and have a billable balance of $220,000 PNNL work.

Orca Boiler Update: The new electric boiler continues to perform well, saving significant fuel.

Payroll Protection Program. Forgiveness applications are not yet accepted; we are preparing one.

CEO Travel: None until further notice.

CEO Updates to Board: On August 28th and 29th the August Board Meeting PowerPoint presentation, an excel spreadsheet with numbers for the PowerPoint, a picture of hydro prospects discussed in August meeting, an Electrify Alaska preliminary draft agenda, and overview of Marine Hydrokinetic (MHK) grant draft application materials were emailed to the board as information items.

Operations Update: July and August power production and line crew activities included:

  • Awarded an RFP for HQ elevator removal
  • New Underground down Orca Inlet Road from Orca Plant to Fleming Spit
  • New Service Davis Ave, NVE cold storage, LeFevre, Whitshed marina, Whitshed, Chase Ave
  • Maintained appropriate pandemic protocols in workplaces
  • Continued daily 7am tailboard meetings near company-wide daily call
  • Received Alaska Energy Authority approval to gift ORC to Icelanders, in progress
  • Responded to several customer requests for new services – higher than normal volume
  • Removed elevator room, elevator parts, concrete floor, repaired roof at HQ bldg
  • Soil remediation work was completed at the Eyak Service Center
  • Ilanka Clinic maintenance at HQ building
  • SAFT performed annual battery energy storage system maintenance
  • Airport locates for relocation work for new ARF building

CEO Verbal Report

Koplin discussed the 2nd Street Project, personnel leaving CEC, a new employment hire, and the headquarter elevator removal.

Administrative Reports

Merritt reviewed the following reports:

  • Financial Report for 8/31/2020
  • Revenue Report for August
  • Historical Revenue Breakdown – Supplement
  • Cash Flow Report for August
  • Cash Disbursements for August
  • Purchase Order Report
  • Generation & Sales Statistics

NEW BUSINESS

Purchase Order #2272 to MSI for $10,495.68 – Phillips moved and Ranney seconded to approve Purchase Order #2272 to Marine Systems Inc. for $10,495.68. Newlun explained the service work to Engine #7. Roll call vote: Unanimous. Motion carried.

Purchase Order #2274 to SAFT for $26,703.00 – Koplin explained the reason for the Purchase Order. Phillips moved and Ranney seconded to approve CEC Purchase Order #2274 to SAFT USA for the not to exceed amount of $26,703.00 for budgeted annual maintenance. Roll call vote: Unanimous. Motion carried.

Strategic Plan – Current long/medium term and draft 2021 Operating Plan – Pegau explained the Strategic Plan and Board reviewed and discussed the Strategic Plan and Annual Operating Plan draft for 2021. Board gave direction to staff regarding the Strategic Plan.

Resolution 20-04 – Support for a Renewable Energy Assistance Program Grant Through the Alaska Energy Authority for a Regional Assessment of Hydro Resource – Koplin explained the Resolution. Ranney moved and Cook seconded to approve Resolution 20-04, a Resolution of support for a renewable energy assistance program grant through the Alaska Energy Authority for the Cordova area hydro assessment project.

CEC BOARD RESOLUTION 20-04

A RESOLUTION OF SUPPORT FOR A RENEWABLE ENERGY ASSISTANCE PROGRAM GRANT THROUGH THE ALASKA ENERGY AUTHORITY FOR THE CORDOVA AREA HYDRO ASSESSMENT PROJECT

WHEREAS it is the strategic goal of Cordova Electric Cooperative to provide 90% of electricity with renewable energy by 2025 and reduce dependence upon fossil fuels; and

WHEREAS, on average CEC provides 70% of electricity with renewable energy; and

WHEREAS, CEC has institutional knowledge and expertise in building, operating, and maintaining hydroelectric facilities; and

WHEREAS the potential to increase the hydro resource at the existing hydro power plant locations of Humpback Creek and Power Creek has not been assessed; and

WHEREAS there are multiple locations surrounding the Cordova region that may be feasible for a hydroelectric facility; and

WHEREAS there is an economy of scale in assessing several potential sites simultaneously; and

WHEREAS, in a memo dated April 13, 2017 titled Cordova Regional Hydro Resource Assessment, the Alaska Energy Authority recommends CEC consider Raging Creek hydro resources; and

WHEREAS, CEC has prioritized alternative hydro resources and conducted a pre-feasibility study on Raging Creek that indicates a feasibility study is warranted for conventional and pumped storage hydro,

NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of Cordova Electric Cooperative Inc. approve and endorse the PROJECT.

Discussion on the Resolution. Roll call vote: Unanimous. Motion carried.

Fleming Spit Stairs Donation Contribution (CRWP) – Koplin explained project and request from the Copper River Watershed Project. Board discussed the request. Cooper disclosed a conflict of interest, withdrew from the discussion, and abstained from the vote. Pegau moved and Beedle seconded to donate a not to exceed amount of $2500 as a contribution to the Fleming Spit Community Access Improvement Project for the 2021 Budget. Discussion on motion. Roll call vote: Beedle, Campbell and Pegau voted yes. Ranney, Cook and Phillips voted no. 3-yea, 3-nay. Motion failed.

Capital Credits Allocation – Merritt explained the suggested options. Cooper moved and Cook seconded to approve Resolution 20-05, a Resolution authorizing a general retirement of capital credits for 100% remaining of 1981 and 35% of 1982 for an amount not to exceed $175,000.

RESOLUTION 20-05

A RESOLUTION AUTHORIZING A GENERAL RETIREMENT OF CAPITAL CREDITS

WHEREAS, the Cordova Electric Cooperative, Inc., Board of Directors has determined that the financial condition of the Cooperative will not be impaired by partially retiring the capital credited to members’ accounts in accordance with the CEC Bylaws;

THEREFORE, BE IT RESOLVED the Cordova Electric Cooperative, Inc., Board of Directors, approves the retirement of capital credits allocated to patrons for the following years(s): 100% remaining of 1981 and 35% of 1982.

BE IT FURTHER RESOLVED, that the total of the above retirements do not exceed One hundred seventy five thousand Dollars ($175,000.00).

Discussion on the motion and capital credit allocations. Roll call vote: 6-yea, 1-nay (Beedle) Motion passes.

UNFINISHED BUSINESS

None

INFORMATION ITEMS

CEO Travel – noted

Board Attendance at Regular Meetings – noted

Revenue Requirements Study – Pegau said this is being provided for the Board’s information. Merritt explained the Study.

OTHER ITEMS

Discuss continuing virtual meetings due to Pandemic or return to meeting in person – Board discussed virtual meetings vs in-person meetings. Board decided to continue as is with virtual meetings.

Policy Review:

  • Policy #66 – Capital Credits – It appears there has been a policy update since Policy 66 so the updated Policy will be included on the October Agenda
  • Policy #67 – Code of Conduct – Refer to staff for revisions as discussed. Beedle moved and Phillips seconded to refer Policy 67 to staff tor revisions as discussed. With no objection the motion passed.

EXECUTIVE SESSION – none needed

PENDING AGENDA

  • Review Board Evaluation Quarterly (January/April/July/October)
  • Bylaw Committee to meet to discuss any Bylaw changes needed
  • Board Training Options (available from NRECA later in September)
  • Rate Analysis on October agenda
  • Directors to have names for the Nominating Committee at the October meeting

BOARD PENDING EVENTS CALENDAR

Noted

SUMMARY OF BOARD DIRECTION TO CEO

  • Operating Plan additions
  • CRWP donation request – tell about CoBank Sharing Success program
  • Revenue requirements study
  • Policy 67 – Review & revise
  • Policy 66 – correct policy in Oct agenda packet

BOARD COMMENTS

Cook – Engaging meeting. Appreciates everyone.

Cooper – Echo’s Joe – thank you everyone.

Campbell – Thanks all. Has been enjoying the Jurassic Parliament training.

Phillips – Very engaging meeting. Thanked everyone for their time tonight.

Beedle – Thanks for the Jurassic Parliament training. Thank you all.

Ranney – Congrats on 2nd Street project. Really likes driving past the Orca plant and not hearing

the generators because we are using hydro.

Pegau – Thank you all for your patience and work on the Strategic Plan.

There being no further business the meeting adjourned at 9:18 p.m.

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