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HomeMy WebLinkAboutBradley Lake PMC Meeting-Wed., Jan. 7, 2004 3BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES 813 W. Northern Lights Boulevard Anchorage, Alaska Wednesday, January 7, 2004 — 9:00 a.m. 1. CALL TO ORDER Chairman Steve Haagenson called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 9:00 a.m. on Wednesday, January 7, 2004, from the Alaska Industrial Development and Export Authority’s Board Room, Anchorage, Alaska, to conduct the business of the Committee per the agenda and public notice. 2. ROLL CALL Roll was called by Shauna Howell. The following members were present: Steve Haagenson Golden Valley Electric Association Joe Griffith Chugach Electric Association Rick Eckert Homer Electric Association Don Zoerb Matanuska Electric Association (teleconference) Jim Posey Anchorage Municipal Light & Power Dave Calvert City of Seward Art Copoulos Alaska Energy Authority 3. PUBLIC ROLL CALL Shauna Howell, Alaska Energy Authority Brenda Applegate, Alaska Energy Authority Bob Day, Anchorage Municipal Light & Power Doug Hall, Anchorage Municipal Light & Power Bob Price, Anchorage Municipal Light & Power Rick Miller, Anchorage Municipal Light & Power Ed Ruebling, Anchorage Municipal Light & Power Jim Walker, Matanuska Electric Association (teleconference) Mike Cunningham, Chugach Electric Association (teleconference) John Cooley, Chugach Electric Association Brian Hickey, Chugach Electric Association Bob Zacharski, Homer Electric Association (teleconference) Bradley Lake PMC Meeting Minutes for January 7, 2004 Meeting 4. PUBLIC COMMENT There were no public comments. 5. AGENDA COMMENTS Budget adjustment/construction funds presentation from Mike Cunningham and Brenda Applegate to be added as item 7C. 6. APPROVAL OF MEETING MINUTES - October 21, 2003 Mr. Posey moved to approve the meeting minutes of October 21, 2003. Seconded by Mr. Calvert. A voice vote was taken, and the minutes were unanimously approved. 7A. VATech Budgetary Proposal — Robert Day Bob Day gave a brief overview of the proposal and September 23, 2003 letter (attached). MOTION #04-1: Mr. Griffith moved that be it resolved that the BPMC authorize HEA to immediately proceed with contract negotiations with VA Tech to provide the services and equipment as described in their proposal of September 23, 2003, at a cost not to exceed $1.8 million. A decision to proceed or not to proceed with the work past the modeling phase will be allowed under this contract. The modeling phase is not to exceed $400,000. Proceed to obtain FERC approval of modifications. Seconded by Mr. Posey. A voice vote was taken, and the motion was unanimously approved. MOTION #04-2: Mr. Griffith moved that be it resolved that the BPMC requests HEA to enter into a continued employment arrangement with Don Stead in order to retain his knowledge and services for this governor modification project. Terms to be negotiated by HEA and Mr. Stead. Seconded by Mr. Calvert. A voice vote was taken, and the motion was unanimously approved. 7B. FERC Update Art Copoulos Mr. Copoulos noted that Ron Saxton and Chair Haagenson had met with FERC in Washington, D.C. FERC in D.C. said they will defer to Portland, and the Portland office said they would defer to local permit regulators/evaluators. Permits must be obtained from U.S. Fish and Wildlife, Fish and Game, Department of Natural Resources, and possibly the Corps. The only issue of concern is question of whether when the airstrip is closed, will we continue to allow public access to the Martin River Airstrip. Plans as initially discussed include abandoning the airstrip, put white Xs across it, but leave the airstrip in place. The plan is to not allow any public access. The airstrip will be in accordance with Federal air regulations. Page 2 of 4 Bradley Lake PMC Meeting Minutes for January 7, 2004 Meeting 7C. Budget Adjustment / Const. Funds Mike Cunningham & Brenda Applegate A handout was presented to the committee (attached). Brenda Applegate gave an overview, and also discussed the treatment of surplus amount and its effect on the FY04 contributions. MOTION #04-3: Mr. Griffith motioned to refund the June 2003 balance of $2,013,381.00 in accordance with agreements and approve and bill in accordance with Budget Scenario B and to hold the money and pay out at a later date. Seconded by Mr. Posey. Mr. Zoerb asked to know the background of the $30,000.00 legal item included in the revision. Chair Haagenson stated the following estimated PMC legal costs: $5,000 for insurance issues, $5,000 for FERC licensing, $5,000 for meeting attendance, $5,000 for construction contracting, $10,000 for legislative review of Bradley transfer to utilities including bond review and analysis. The $30,000.00 is an estimate and Chair Haagenson will discuss with Ron Saxton to verify number. MEA expressed its reservations about AterWynne firm representing the PMC given its adverse posture to MEA’s interest in a number of other venues. Mr. Zoerb stated that MEA would be comfortable with the budget revision if not for the $30,000.00 legal item. Absent that, MEA will have a problem concurring to the motion if it includes a further financial commitment to the firm that is adverse to them in other venues. Chair Haagenson stated that what the group was voting on is a budget adjustment, not who the vendor should be. Mr. Zoerb noted that the budget adjustment includes an additional $30,000.00 commitment to the firm that they object to, and because of the $30,000.00 item, they will have to vote against the budget revision. A roll call vote was taken on Motion #04-3: Utility Vote City of Seward Yes Matanuska Electric Association No Chugach Electric Association Yes Homer Electric Association Yes Golden Valley Electric Association Yes Anchorage Municipal Light & Power Yes Alaska Energy Authority Yes Mr. Zoerb requests that the reason for voting against the motion be recorded in the minutes. “Our objection is based solely on the inclusion of an additional $30,000.00 commitment to the AterWynne law firm, based_on the conflict of interest that MEA perceives this law firm to have.” Page 3 of 4 Bradley Lake PMC Meeting Minutes for January 7, 2004 Meeting 8A. Next Meeting Date Chair Haagenson The next meeting will be at the Call of the Chair. 8B. Operators Report Bob Zacharski Mr. Zacharski reported that they have been operating with one operator short for the last nine months. In November they certified a third operator and were fully staffed. One month later, they had another lost time injury with one of the three operators at Bradley. This operator was the electrician and that put them behind on the PMs. In two weeks they will be getting another electrician from the Nikiski power plant and hope to clean up all the outstanding PMs on the electrical side. The runner repairs have been completed. An ongoing document control effort is ongoing in conjunction with Art’s office to categorize and catalog the drawings and publications associated with Bradley. Lastly, he stated that VA Tech visited the site two weeks ago to take a first hand look at the governor and actuator cabinets. 8C. Insurance/Risk Assessment Scope of Work/ Signed _ Chair Haagenson Chair Haagenson stated that he had completed and mailed the Application for Directors & Officers Liability Insurance for the Bradley Lake Project Management Committee. Chair Haagenson will send a letter changing the answer to question #10 under the Organization Information section to clarify and state that AEA, the owning organization is a State/government entity. Chair Haagenson noted that he had two action items — the legal fix on construction funds, as well as the D&O questionnaire issue. 9. ADJOURNMENT The meeting was adjourned at 10:15 a.m. BY: meg — Steve Haagenson, Chairman ATTEST: Page 4 of 4