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Home My WebLink AboutBradley Lake PMC Meeting Wednesday, January 23, 2008 2Bradley Lake Project Management Committee Meeting ALASKA ENERGY AUTHORITY Special Meeting Public Notice Bradley Lake Project Management Committee Notice is hereby given that the Bradley Lake Project Management Committee will hold a special meeting on Wednesday, January 23, 2008 at 10:00 a.m. via teleconference regarding the review and acceptance of the FY07 Audit Report, the authorization for AEA to refund surplus to utilities, and direction provided for the procurement of a new auditor. For additional information contact Bradley Janorschke, Vice Chairman. This meeting will be conducted by electronic media pursuant to AS 44.88.050(a) and AS 44.62.310 at the following location: Alaska Industrial Development and Export Authority, 813 West Northern Lights Boulevard, Anchorage, Alaska; The public is invited to attend. The State of Alaska (AIDEA) complies with Title Il of the Americans with Disabilities Act of 1990. Disabled persons requiring special modifications to participate should contact AIDEA staff at (907) 771-3000 to make arrangements. Attachments, History, Details Attachments Details None Department: Revision History Category: Created 1/17/2008 3:34:41 AM by bjfuglestad Sub-Category: Modified 1/17/2008 12:34:41 PM by bjfuglestad Location(s): Project/Regulation #: Publish Date: Archive Date: Events/Deadlines: Commerce, Community and Economic Development Public Notices Anchorage 1/17/2008 1/24/2008 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES SPECIAL MEETING (via teleconference in the AIDEA/AEA Board Room) Anchorage, Alaska Wednesday, January 23, 2008 — 10:00 a.m. 1; CALL TO ORDER Vice Chair Janorschke called the special meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:00 a.m. on Wednesday, January 23, 2008, from the AIDEA/AEA 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: Brad Evans Chugach Electric Association Henri Dale Golden Valley Electric Association Bradley Janorschke Homer Electric Association Wayne Carmony Matanuska Electric Association Jim Posey Anchorage Municipal Light and Power Tim Barnum City of Seward Bryan Carey Alaska Energy Authority 3. PUBLIC ROLL CALL Shauna Howell, AEA Linda MacMillan, AEA Rick Eckert, HEA Gary Stromberg, Parisena, Stromberg & Company Charlie O’Hare, HEA Rick Miller, AML&P Mike Cunningham, CEA Wayne Carmony, MEA Don Zoerb, MEA Tuckerman Babcock, MEA Page 1 of 3 PUBLIC ROLL CALL (Continuation) Jim Walker, MEA Kirk Gibson, Ater Wynne LLP Agenda Item 1: MOTION: Mr. Posey moved that the Bradley Lake Project Management Committee accept the results of the Bradley Lake Project Management Committee Operating and Revenue Funds as of June 30, 2007, as presented by Parisena, Stromberg and Company, APC. Seconded by Mr. Evans. Vice Chair Janorschke opened the motion for discussion. MEA asked at what capacity was Mr. Gibson participating in the meeting. Mr. Gibson responded that he was there for the BPMC only. MEA objected to the representation. Mr. Gibson stated that he will not represent the BPMC at this meeting, but rather, will remain on the teleconference as a guest. Mr. Stromberg noted that this would be his last year providing an audit, as he will be retiring. Mr. Stromberg gave a review of the audit. A voice vote was taken and the motion was unanimously approved. Agenda Item 2: MOTION: Mr. Posey moved that the Bradley Lake Project Management Committee instruct AEA to pay the utilities their proportionate share of the FY07 surplus by the end of January, 2008. Seconded by Mr. Evans. Vice Chair Janorschke opened the motion for discussion. No discussion ensued. A voice vote was taken and the motion passed unanimously. Agenda Item 3: MOTION: Mr. Evans moved that the Budget and Finance Subcommittee begin RFP process to select a new auditor for audit of the Revenue and Operating bond funds under 9.3 of the BPMC By-Laws. Vice Chair Janorschke opened the motion for discussion. No discussion ensued. A voice vote was taken and the motion passed unanimously. Thanks was expressed to Mr. Stromberg for his work on the yearly audits. Page 2 of 3 The next meeting will be at the call of the Vice Chair. ADJOURNMENT Meeting adjourned at 10:25 a.m. ZZ BY: ea ATTEST: Z a f y Alaska Energy Atthority, Secretary Page 3 of 3 AUDITED FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS JUNE 30, 2007 AND 2006 Parisena, Stromberg & Company A Professional Corporation AUDITED FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS JUNE 30, 2007 AND 2006 Parisena, Stromberg & Company A Professional Corporation Audited Financial Statements and Other Financial Information BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS Independent Auditor's Report Balance Sheets Statements of Revenues and Expenses Statements of Cash Flows Notes to Financial Statements Independent Auditor's Report on Additional Information Statements of Expenses 5-9 10 11 Larisena, Stromberg be Company A Professional Corporation Certified Public Accountants 3201 C Street, Suite 405 Anchorage, Alaska 99503 Tel. (907) 563-4547 FAX (907) 561-7683 Independent Auditor's Report Bradley Lake Project Management Committee Anchorage, Alaska We have audited the accompanying special-purpose balance sheets of the Bradley Lake Project Management Committee Operating and Revenue Funds (a project management committee) as of June 30, 2007 and 2006, and the related special-purpose statements of revenues and expenses, and of cash flows for the years then ended. These financial statements are the responsibility of the Bradley Lake Project Management Committee. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. The accompanying special-purpose financial statements were prepared for the purpose of complying with, and in conformity with the accounting requirements specified in Note A, and are not intended to be a presentation in conformity with generally accepted accounting principles. In our opinion, the special-purpose financial statements referred to above present fairly, in all material respects, the assets, liabilities and surplus of the Bradley Lake Project Management Committee Operating and Revenue Funds as of June 30, 2007 and 2006, and its revenue and expenses and its cash flows for the years then ended, on the basis of accounting described in Note A. This report is intended solely for the information and use of the Bradley Lake Project Management Committee and is not intended to be and should not be used by anyone other than this specified party. NU eagle AULA Parisena, Stromberg & Company, APC Anchorage, Alaska November 2, 2007 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS BALANCE SHEETS June 30, 2007 and 2006 2007 2006 ASSETS Current assets: Investments (Note B) $ 2,353,241 $ 992,086 Utility contributions receivable (Note E) - 70,648 Prepaid expense 17,929 20,525 Total assets $ 2,371,170 $1,083,259 LIABILITIES AND SURPLUS Current liabilities: Due to other funds (Note D) $ - $ 4,714 Accounts payable 643,508 666,126 Payable to utilities (Note E) 280,290 - R & C repayment . 1,447,372 412.419 Total liabilities $ 2,371,170 $1,083,259 See accompanying notes to the financial statements. 2 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS STATEMENTS OF REVENUES AND EXPENSES Years ended June 30, 2007 and 2006 2007 Variance Favorable 2006 Budget Actual (Unfavorable) Actual Revenues: Utility contributions, net of surplus refund $ 15,847,816 $15,567,526 $ (280,290) $ 14,448,825 Interest receipts 1,713,712 1,875,539 161,827 1,896,353 Other miscellaneous : 5,656 5,656 - Total revenue 17,561,528 17,448,721 (112,807) 16,345,178 Expenses, fixed asset replacements, refunds and debt service: Operations and maintenance 5,012,577 4,891,214 121,363 3,827,139 Debt service 12,273,950 12,273,950 - 12,276,325 Arbitrage transfer 250,000 258,555 (8,555) 241,714 Fixed asset replacements - - - - Interfund transfer 25,001 25.002 (1) - Total expenses, fixed asset replacements and debt service 17,561,528 17.448.721 112,807 16,345,178 Excess (deficiency) of revenues over expenses, fixed asset replacements, refunds and debt service AS RUM AULA | PS en Rg PGS Ue ULC 1, : See accompanying notes to the financial statements. 3 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS STATEMENTS OF CASH FLOWS Years ended June 30, 2007 and 2006 Cash flows from operating activities: Excess (deficiency) of revenues over expenses, fixed asset replacements, refunds and debt service Adjustments to reconcile excess (deficiency) of revenues over expenses, fixed asset replacements, refunds and debt service to net cash provided by (used in) operating activities: Decrease in accounts receivable Decrease (increase) in utility contributions receivable Decrease (increase) in prepaid expense Increase (decrease) in accounts payable Decrease in amounts due to other funds Decrease in utility contributions paid in advance Increase (decrease) in payable to utilities Increase in R & C repayment Net cash provided by (used in) operating activities Available cash and cash equivalents, beginning of year Available cash and cash equivalents, end of year Supplemental disclosure of cash flows information: Interest paid See accompanying notes to the financial statements. 4 70,648 2,596 (22,618) (4,714) 280,290 1,034,953 1,361,155 992.086 $2,353,241 tt iS iS IA 293,170 (70,648) (20,525) 258,786 (4,047) (348,035) (704,801) 412.419 (183,681) 1,175,767 $_992,086 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS NOTES TO FINANCIAL STATEMENTS June 30, 2007 and 2006 NOTE A: SIGNIFICANT ACCOUNTING POLICIES Description of Business: The Bradley Lake Project Management Committee (the Committee) was established pursuant to Section 13 of the Agreement for the Sale and Purchase of Electric Power (Power Sales Agreement) dated December 8, 1987. The purpose of the Committee is to arrange for the operation and maintenance of the Bradley Lake Hydroelectric Project (the Project), which became operational in September 1991, and the scheduling, production and dispatch of power. The members of the Committee include the Alaska Energy Authority (AEA) and the five purchasers under the Power Sales Agreement - Chugach Electric Association, Inc.; Golden Valley Electric Association, Inc.; the Municipality of Anchorage (Municipal Light & Power); the City of Seward (Seward Electric System); and the Alaska Electric Generation & Transmission Cooperative, Inc. (AEG&T). The Homer Electric Association, Inc. (HEA) and the Matanuska Electric Association, Inc. (MEA) are additional parties to the Power Sales Agreement but are included as power purchasers for purposes of representation while AEG&T has no direct vote as a consequence of the individual representation of HEA and MEA. Section 13 of the Power Sales Agreement delineates other Committee responsibilities, including: establishing procedures for each party's water allocation, budgeting for annual Project costs and calculating each party's required contribution to fund annual Project costs. Committee approval of operations and maintenance arrangements for the Project, sufficiency of the annual budgets and wholesale power rates and the undertaking of optional Project work requires a majority affirmative vote and the affirmative vote of AEA. The Power Sales Agreement extends until the later of: 1) 50 years after commencement of commercial operation or 2) the complete retirement of bonds outstanding under the AEA Power Revenue Bond Resolution along with the satisfaction of all other payment obligations under the Power Sales Agreement. Renewal options for additional terms exist. Establishment of Trust Funds: Article V, Section 502 of the Alaska Energy Authority's Power Revenue Bond Resolution established a Revenue Fund and an Operating Fund, including an Operating Reserve account, to be held by AEA. In actuality these funds, along with the Debt Service, Excess Investment Earnings (arbitrage), and various construction funds related to the Bradley Lake Hydroelectric Project are all held by the Corporate Trust Department of US Bank in Seattle, Washington. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 2007 and 2006 NOTE A: SIGNIFICANT ACCOUNTING POLICIES (Continued) All deposits, including utility contributions and interest transferred from other funds, are made into the Revenue Fund, which transfers amounts approximately equal to one-twelfth of the annual operating and maintenance budget into the Operating Fund on a monthly basis. Additional transfers are made from the Revenue Fund to the Debt Service Fund in order to satisfy semiannual interest payments and annual principal payments on the Project's outstanding bonds payable. Interest earnings available for operations and maintenance are derived from the following funds: Debt Service Fund; Operating Reserve Fund; Operating Fund; Revenue Fund; Capital Reserve Fund; and the Renewal & Contingency Fund when the fund balance is $5,000,000 or greater. Revenue and Expense Recognition: Utility contributions are recognized as revenue when due to be received under the terms of the Power Sales Agreement. Transfers from other funds are recognized when the transfer is made and interest earnings are recognized when received. Operating and maintenance expenses are recognized when incurred, while interest and principal transfers to Debt Service Fund are recognized when the transfer is made. Purchases of fixed asset replacements are expensed when purchased. Transfer to the Renewal and Contingency Reserve Fund (R & C) for repayments of capital costs is recognized at fiscal year end based on capital costs incurred as of fiscal year end. Dividends from ARECA Insurance are recognized on a cash basis. Estimates: The preparation of the special-purpose financial statements of the Operating and Revenue Funds requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Income Taxes: The Bradley Lake Project Management Committee is exempt from income taxation under Section 501 (a) of the Internal Revenue Code. NOTE B: INVESTMENTS Substantially all of the balances in the following funds are invested in collateralized investment agreements through the trust department of US Bank. The specified interest rate for monies from the Operating and Revenue Funds invested in the agreements is 7.38% per annum. Balances at June 30, 2007 and 2006 are as follows: BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 2007 and 2006 NOTE B: INVESTMENTS (Continued) 2007 2006 Operating Fund $ 821,997 $ 534,188 Revenue Fund 1,531,244 457,898 Total investments $2,353,241 $ 992.086 Investments are sold as needed to cover operating requisitions submitted to the trustee and are therefore considered to be short-term and available for sale. Investments are presented at aggregate cost, which approximates market value. For purposes of the cash flow statements, management considers the full amount of the investment balance to be cash available for operations. NOTE C: MAJOR CONTRACTS AND AGREEMENTS During May 1994, the Alaska Energy Authority entered into the Master Maintenance and Operating agreement with the Committee. The purpose of the agreement is to establish contract administration and budgeting procedures for maintenance and operation contracts of the Bradley Lake Hydroelectric Project and to provide for the lease or other use of facilities and equipment in a manner consistent with the requirements of the Power Sales Agreement. The term of the Master Agreement is indefinite, remaining in effect until termination of the Power Sales Agreement or until AEA no longer legally exists. This agreement authorizes AEA to enter into any contracts necessary to perform operating or maintenance-type services to the Project, subject to the approval of the Committee. On behalf of the Committee, the AEA entered into an agreement with Chugach Electric Association, Inc. (CEA) in August, 1996, for the provision of all services necessary to dispatch the Bradley Project's electric power output. The dispatch agreement runs concurrently with the wheeling and related services contract entered into by and among the parties to the Power Sales Agreement in December 1987 and remains in effect for the term of the wheeling agreement unless CEA ceases to be the output dispatcher. In August 1996, the Alaska Energy Authority entered into an agreement with CEA on behalf of the Committee for the provision of maintenance services for the Daves Creek and Soldotna SVC Substations. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 2007 and 2006 NOTE C: MAJOR CONTRACTS AND AGREEMENTS (Continued) An operation and maintenance agreement dated February 11, 1994, was executed between Homer Electric Association, Inc. and the Alaska Energy Authority. This agreement provides for the operation and maintenance of the Bradley Lake Hydroelectric Project by Homer Electric Association, Inc. The agreement is through June 30, 2004 and continues from year to year thereafter, except upon written notice to terminate by either party. Notice of termination must be given one year in advance of the termination date. HEA is to be reimbursed for costs associated with the operation, maintenance and repair of the Project as determined in advance through the submission of an annual budget based upon prudent estimates and anticipated operation and maintenance costs. In August, 1996, the agreement was amended to separate the maintenance of the transmission facilities from the hydroelectric project. The transmission agreement continues from year to year, except upon written notice to terminate by either party. Notice of termination must be given six months in advance of termination dates. In June, 1999 the agreement was again amended to require HEA to provide communication services in addition to the other services. NOTE D: RELATED PARTY TRANSACTIONS During the years ended June 30, 2007 and 2006, costs incurred under the various contracts with related parties described in Note C were as follows: 2007 2006 Homer Electric Association, Inc. — operation, maintenance and communications $ 1,397,214 $ 1,640,208 Chugach Electric Association, Inc. — substation service maintenance $ 85,118 $ 89,641 Alaska Energy Authority — administrative fees $ 200,000 $ 200,000 For the years ended June 30, 2007 and 2006, Chugach Electric Association, Inc. provided dispatch services to the Committee at the agreed upon amount which is zero. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS NOTES TO FINANCIAL STATEMENTS cameras June 30, 2007 and 2006 NOTE D: RELATED PARTY TRANSACTIONS (Continued) Amounts payable to related parties at June 30, 2007 and 2006 were as follows: 2007 006 Included in accounts payable: Homer Electric Association, Inc. $ 181,139 $ 275,876 Chugach Electric Association, Inc. $ 25,496 $ 3,665 Due to other funds: Alaska Energy Authority — short-term borrowings for vendor payments $ - $ 4,714 NOTE E: SURPLUS REFUND AND UTILITY CONTRIBUTIONS RECEIVABLE The $70,648 utilities contribution receivable at June 30, 2006 was repaid by the member utilities in fiscal year 2007 pursuant to the Power Sales Agreement and direction of the Committee. The $280,290 surplus at June 30, 2007 will be refunded to member utilities in fiscal year 2008 pursuant to the Power Sales Agreement and direction of the Committee. A Professional Corporation Certified Public Accountants 3201 C Street, Suite 405 Anchorage, Alaska 99503 Tel. (907) 563-4547 FAX (907) 561-7683 Independent Auditor’s Report on Additional Information Bradley Lake Project Management Committee Anchorage, Alaska Our report on our audits of the special-purpose financial statements of the Bradley Lake Project Management Committee Operating and Revenue Funds for the years ended June 30, 2007 and 2006 appears on the page preceding the balance sheets. Those audits were conducted for the purpose of forming an opinion on the special-purpose financial statements taken as a whole. The supplemental special-purpose Statements of Expenses are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the special-purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the special- purpose financial statements taken as a whole. (Peony shemale (por, APE Parisena, Stromberg & Company, APC Anchorage, Alaska November 2, 2007 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS STATEMENTS OF EXPENSES Years ended June 30, 2007 and 2006 2007 Variance Favorable 2006 Budget Actual (Unfavorable) Actual Expenses: Generation expense: Operation supervision and engineering $ 125,569 $ 154,485 $ (28,916) $ 176,529 Hydraulic operation 49,200 71,711 (22,511) 4,416 Electric plant operation 222,000 178,085 43,915 222,062 Hydraulic power generation operation 453,365 393,631 59,734 318,064 FERC land use fees 74,000 62,623 11,377 64,587 Structure maintenance 172,851 139,750 33,101 116,324 Reservoir, dam, and waterway maintenance 10,440 4,907 $,533 - Electric plant maintenance 280,200 214,055 66,145 503,363 Hydraulic plant maintenance 263,000 118,858 144,142 171,116 System control and load dispatching 268,861 267,836 1,025 282,400 Substation operation and maintenance 130,000 85,117 44,883 89,640 Overhead line maintenance 270.000 231,123 38,877 30,423 Total generation expense 2,319,486 1,922,181 397,305 1,978,924 Administrative, general and regulatory expense: Insurance 605,357 622,670 (17,313) 599,449 AEA administrative fee 200,000 200,000 - 200,000 PMC costs 74,500 45,350 29,150 40,994 Regulatory commission: FERC administrative fees 126,000 196,747 (70,747) 269,272 FERC licensing 90,000 88,858 1,142 85,145 FERC study 115,000 40,849 74,151 38.419 Total administrative, general and regulatory expense 1.210.857 1,194,474 16.383 1,233,279 Total operations and maintenance expenses, before capital project reimbursement 3,530,343 3,116,655 413,688 3,212,203 R & C repayment 1,482,234 1,774,559 (292,325) 614,936 Total operations and maintenance expenses $_5,012,577 $__4,891,214 $__121363 $3,827,139 11 Agenda Item: 1 MOTION: — Move the Bradley Lake Project Management Committee accept the results of the Bradley Lake Project Management Committee Operating and Revenue Funds as of June 30, 2007, as presented by Par: ail Stromberg & Company, APC. Agenda Item: 3 MOTION: Mote that the Budget and Finance Subcommittee begin RFP process to select a new auditor for audit of the Revenue and Operating bond funds under 9.3 of the BPMC By-Laws. Move: an aa ce A Second: ( HN ee M ee No Aiseussion i \/s fe: U pai moes Ape we i . Agenda Item: 2 MOTION: Move the Bradley Lake Project Management Committee instruct AEA to pay the utilities their proportionate share of the FY07 surplus by the end of January, 2008. Move: ty Losey second: _Dracl Ever FY07 surplus to be refunded to the utilities by end of January 2008 FY07 Surplus 280,289.74 Refund to Utilities CHUGACH ELECTRIC 30.4% 85,208.08 MUNICIPALITY OF ANCHORAGE 25.9% 72,595.04 AEG&T-HEA 12.0% 33,634.77 AEG&T-MEA 13.8% 38,679.98 GOLDEN VALLEY ELECTRIC 16.9% 47,368.97 CITY OF SEWARD 1.0% 2,802.90 Rounding 100.0% 280,289.74 Agenda Item No. CITY OF SEWARD MATANUSKA ELEC ASSOC CHUGACH ELEC ASSOC HOMER ELEC ASSOC GOLDEN VAL ELEC ASSOC MUNI LIGHT & POWER ALASKA ENERGY AUTHORITY A=4+ OVER 51% B = AEA CONCUR With A DATE: | [43/08 BRADLEY PMC VOTING Polt Coll ae a ABS YES NO ABS YES NO = 14% wae 2 [— ] f 4 “mz Es 2a 2 7 Cc 1% (WEEE fT 26% Ea C7 | 7A —— C = UNANIMOUS D= MAJORITY VOTING METHOD A: Requiring four yeas with 51% of utilities, with no AEA vote: 1) Procedures for scheduling, production and dispatch of project power. 2) Establishment of procedures for use of each purchaser's water allocation (AEA assent required for license requirements). 3) Selection among alternative methods that do not involve AEA for funding required project work. VOTING METHOD B: Requiring 4 yeas with 51% of utilities and AEA concurrence: 1) Arranging operation and maintenance of project. 2) Adoption of budget of annual project costs. VOTE(93Q3/BC5272) 3) Establishment of FY estimated annual payment obligation and schedule of each purchaser. 4) Determination of annual project costs after each FY. 5) Evaluation of necessity for and scheduling of required project work. 6) Determination of appropriate amount of insurance. 7) Adoption of additional minimum funding amounts for renewal and contingency reserve fund above that required by bond resolution. 8) Selection among alternate methods that involve AEA for funding required project work, 9) Adoption or amendment of procedural committee rules (except dispute resolution). 10) Adoption of project maintenance schedules. 11) Determination of rules, procedures and accounts necessary to manage project when no bonds outstanding. 12) Evaluation and approval of optional project work and compensation for such work. Application of insurance claims proceeds not governed by bond resolution. 13) 14) Approval of procedures and any individual utility agreements relating to electric power reserves for project. 15) Approval of consultants. VOTING METHOD C: Unanimous vote by all (including AEA) VOTING METHOD D: Majority vote (including AEA) Election of Officers Bradley Lake PROJECT MANAGEMENT COMMITTEE MEETING as ae ot, 2007 Date View te kecocterence @ AIDE A (Location) PLEASE SIGN IN REPRESENTING NAME Fee ACA HEL Le Can LER 14 15 16 17 + 18 Police 19 20 21 22 92Q2\IT9884 Shauna Howell | RN ha ec ER A A ce a ns ct A RR RES Et im RN a er From: Shauna Howell Sent: Wednesday, January 23, 2008 2:09 PM To: Linda MacMillan; Bryan Carey Subject: Audit Reports Audited financial statements were sent out via regular mail today, January 23, 2008, to the following: Brian Newton, GVEA Brad Evans, CEA Brad Janorschke, HEA Tim Barnum, City of Seward Wayne Carmony, MEA Jim Posey, AML&P Mike Cunningham, CEA Henri Dale, GVEA Rick Miller, AML&P Rick Eckert, HEA Our office has migrated to a new phone system. My new phone number is 771-3028 (same extension, different prefix) and our new fax number is 771-3044. Please update where necessary. Thank you. Shauna Howell Administrative Assistant Alaska Industrial Development and Export Authority and Alaska Energy Authority 813 West Northern Lights Boulevard Anchorage, Alaska 99503 (907) 771-3028 Phone (907) 771-3044 Fax, showell@aidea.org “IDE ALASKA AIE ls) EX. {= ENERGY AUTHORITY +k Alaska Industrial Development and Export Authority LETTER OF TRANSMITTAL TO: Date: January 23, 2008 Bradley Lake Project Management Subject: Audited Financial Statements Committee Members Hand Deliver KJ] U.S. Mail Overnight Delivery Pick-up Facsimile WE ARE SENDING: [X]Attached Under separate cover via the following item(s): COPIES DESCRIPTION 1 Audited Financial Statements and Other Financial Information Bradley Lake Project Management Committee Operating and Revenue Funds June 30, 2007 and 2006 For signature Approved as submitted Resubmit >] For your information Approved as noted Return for correction As requested Review and comment Other: Remarks: SIGNED: 7 cc: 813 West Northern Lights Boulevard e Anchorage, Alaska 99503-2495 www.aidea.org e 907/771-3000 @ FAX 907/771-3044 e Toll Free (Alaska Only) 888/300-8534 e www.akenergyauthority.org Pp. | Transmission Result Report (MemoryTX) ( Jan.18. 2008 10:25AM) * * * 1) AIDEA/AEA x ok * 2) Date/Time: Jan-18- 2008 10:24AM File Page No. Mode Destination Pg (s) Result Not Sent 7100 Memory TX 97624514 Pp. 2 OK Reason for error E.1) Hangs up or line fail —.2) E.3) No answer —.4) arse! Brad Evans Chugach Electric Association (907) 562.6064" Brian Newton Golden Valley Electric Association (907) 458-5951 Bradley Janorschke — Homer Electric Association (907) 235-3323 Wayne Carmony Matanuska Electric Association (907) 689-9368 Jim Posey Anchorage Municipal Light & Power (907) 263-5204 Tim Barnum City of Seward (907) 224-4085 Kirk Gibson AterWynne (803) 226-0079 Number of pages including coversheet oo 2. Shauna Howell From: Bryan Carey Sent: Friday, January 18, 2008 7:19 AM To: Shauna Howell Subject: FW: BPMC Representation Update list please Bryan Carey, P.E. Alaska Energy Authority (907) 771-3065 (New Number!) From: Janorschke, Brad [mailto:bjanorschke@HomerElectric.com] Sent: Thursday, January 17, 2008 1:37 PM To: Bryan Carey Cc: PoseyJM@muni.org; OHare, Charles (Charlie); Gamble, Teresa; Saxton, Susan Subject: RE: BPMC Representation Bryan, Charlie O’ Hare is HEA’s alternate representative. Brad From: Bryan Carey [mailto:bcarey@aidea.org] Sent: Thursday, January 17, 2008 7:24 AM To: Janorschke, Brad; PoseyJM@muni.org Subject: BPMC Representation Were updating our list of BPMC representatives. Two years ago HEA had Bob Z down as the alternate and ML&P had Bob Day listed as the alternate. Who is the HEA BPMC alternate? Who is the ML&P alternate? Bryan Carey, P.E. Alaska Energy Authority (907) 771-3065 (New Number!) Cc: Mike Cunningham; Shauna How,..., 3ryan Carey Subject: FW: Final Draft of FY07 Bradley Lake Financial Report Since the BPMC currently does not have a chair, could you as a co-chair convene a BPMC meeting by teleconference with three agenda items: 1-Review and accept FYO7 Audit Report (draft attached) 2-Authorize AEA to refund surplus to utilities 3-Provide direction for procurement of a new auditor. Gary Stromberg has told us that he will not be able to do this audit next year. Thank you. Linda MacMillan AEA Finance 907-771-3029 From: Linda MacMillan Sent: Thursday, January 10, 2008 4:05 PM To: 'Mike Cunningham’; hfdale@gvea.com; Eckert, Harley (Rick); millerre@muni.org Cc: Shellie M. Helton; Bryan Carey; 'gary@strombergfarm.com' Subject: Final Draft of FY07 Bradley Lake Financial Report Attached are: Final draft of the FYO7 Bradley Lake audit report of Operating and Revenue Funds Recap of refund of FYO7 surplus by utility Please review and let me know if okay to issue the report, i.e. no further changes. Once the report is issued we should request a meeting, by teleconference, of the BPMC to approve the report and authorize AEA to disburse the refund amounts to the utilities. Linda MacMillan AEA Finance <<FY07SurplusRefund.xls>> <<FinalDraft07BradleyFinancialReport.pdf>> Shauna Howell From: Mike Cunningham [Mike_Cunningham@chugachelectric.com] Sent: Friday, January 18, 2008 2:30 PM To: Linda MacMillan Ce: Shauna Howell; Connie Owens; Brad Evans Subject: RE: CEA's representative and alternate on Bradley BPMC Bradley Evans is the Acting CEO now - I would assume he will be the Chugach representative - does the PMC need to take some action to make that happen? Mike Cunningham Chief Financial Officer of fice - 907-762-4778 fax - 907-762-4514 cell - 907-230-9478 mike_cunningham@chugachelectric.com From: Linda MacMillan [mailto:Imacmillan@aidea.org] Sent: Friday, January 18, 2008 2:26 PM To: Mike Cunningham Cc: Shauna Howell Subject: CEA's representative and alternate on Bradley BPMC Mike, Do you know who will represent CEA on the BPMC. The last letter | saw dated 10/20/03 had Joe Griffin as the representative and Lee Thibert designated the alternate. Thanks. Linda Shauna Howell From: Linda MacMillan Sent: Friday, January 18, 2008 2:36 PM To: Mike Cunningham Ce: Shauna Howell; Connie Owens; Brad Evans Subject: RE: CEA's representative and alternate on Bradley BPMC In the past, the utility company chief executive has sent a letter to the BPMC chairman stating who is the representative and who is the alternate. Could CEA send a letter to Brad Janhorschke with cc to AEA stating who is CEA’s representative and alternate before the meeting next week? Thanks. Linda From: Mike Cunningham [mailto:Mike_Cunningham@chugachelectric.com] Sent: Friday, January 18, 2008 2:30 PM To: Linda MacMillan Cc: Shauna Howell; Connie Owens; Brad Evans Subject: RE: CEA's representative and alternate on Bradley BPMC Bradley Evans is the Acting CEO now - I would assume he will be the Chugach representative - does the PMC need to take some action to make that happen? Mike Cunningham Chief Financial Officer office - 907-762-4778 fax - 907-762-4514 cell - 907-230-9478 mike cunningham@chugachelectric.com From: Linda MacMillan [mailto:Imacmillan@aidea.org] Sent: Friday, January 18, 2008 2:26 PM To: Mike Cunningham Cc: Shauna Howell Subject: CEA's representative and alternate on Bradley BPMC Mike, Do you know who will represent CEA on the BPMC. The last letter | saw dated 10/20/03 had Joe Griffin as the representative and Lee Thibert designated the alternate. Thanks. Linda Shauna Howell From: Henri F. Dale [HFDale@gvea.com] Sent: Monday, January 21, 2008 2:45 PM To: Shauna Howell Subject: RE: Bradley Lake PMC - Special Meeting - (Teleconference) Notification Shauna, both Brian Newton and Kate Lamal will not be available for the teleconference. | will be calling in representing GVEA. It appears I'm on the e-mail list, but if you could double check that | be included on any emails for the upcoming BPMC | would appreciate it. Thanks Henri From: Shauna Howell [mailto:SHowell@aidea.org] Sent: Thursday, January 17, 2008 12:47 PM To: Bob Day, HEA; Brad Evans, CEA; Bradley Janorschke, HEA; Brenda Applegate, AEA; Brenda Fuglestad, AEA; Brian Bjorkquist, Dept. of Law; Brian L. Newton; Bryan Carey, AEA; Charlie O'Hare, HEA; Connie Owens, Exec. Secretary @ CEA; Erin Leaders, Exec. Secretary @ City of Seward; Gary Stromberg; Henri F. Dale; Jean Schroeder, HEA Secretary; Jim Posey, AML&P; Karl Reiche, AEA; Kirk Gibson, AterWynne; Linda MacMillan, AEA; Mike Cunningham, CEA; Rick Eckert, HEA; Rick Miller, AML&P; Ron Miller, AEA Executive Director; Susan K. Redlin; Teresa Gamble, HEA; Tim Barnum, City of Seward; Wayne Carmony, MEA Subject: Bradley Lake PMC - Special Meeting - (Teleconference) Notification Importance: High A special meeting is scheduled to be held on Wednesday, January 23, 2008, at 10:00 a.m. via teleconference regarding the following listed items: 1-Review and accept FY07 Audit Report 2-Authorize AEA to refund surplus to utilities (attached) 3-Provide direction for procurement of a new auditor. Gary Stromberg has told us that he will not be able to do this audit next year. Attached is some of the documentation you will need for the teleconference on Wednesday. | will be sending out an additional email and fax prior to the meeting with more items for your use/review. This meeting will be conducted by electronic media at the following location: Alaska Industrial Development and Export Authority, 813 West Northern Lights Boulevard, Anchorage, Alaska. Teleconference Instructions: Dial: 1-800-315-6338 Code: 3028# Please contact me if you have any questions. Our office has migrated to a new phone system. My new phone number is 771-3028 (same extension, different prefix) and our new fax number is 771-3044. Please update where necessary. Thank you. a * . Shauna Howell! Administrative Assistant Alaska Industrial Development and Export Authority and Alaska Energy Authority 813 West Northern Lights Boulevard Anchorage, Alaska 99503 (907) 771-3028 Phone (907) 771-3044 Fax showell@aidea. org Shauna Howell From: Connie Owens [Connie_Owens@chugachelectric.com] Sent: Wednesday, November 21, 2007 8:18 AM To: Shauna Howell Subject: FYI - For the Next Bradley Lake Meeting Agenda Rebid Audit Services for Bradley Lake. Connie Owens, CPS/CAP Executive Assistant Chugach Electric Association, Inc. P.O. Box 196300 Anchorage, Alaska 99519 (907) 762-4747 connie owens@chugachelectric.com Shauna Howell From: Janorschke, Brad [bjanorschke@HomerElectric.com] Sent: Tuesday, January 15, 2008 4:14 PM To: Linda MacMillan; Gamble, Teresa Ce: Mike Cunningham; Shauna Howell; Bryan Carey; Bradley Evans; Brian Nelson; Jim Posey; Tim Barnum; Wayne Carmony Subject: RE: Final Draft of FY07 Bradley Lake Financial Report No problem Linda. It sounds like Teresa will be working with Shauna to set something up. Brad From: Linda MacMillan [mailto:Imacmillan@aidea.org] Sent: Tuesday, January 15, 2008 9:26 AM To: Gamble, Teresa; Janorschke, Brad Cc: Mike Cunningham; Shauna Howell; Bryan Carey Subject: FW: Final Draft of FY07 Bradley Lake Financial Report Since the BPMC currently does not have a chair, could you as a co-chair convene a BPMC meeting by teleconference with three agenda items: 1-Review and accept FYO7 Audit Report (draft attached) 2-Authorize AEA to refund surplus to utilities 3-Provide direction for procurement of a new auditor. Gary Stromberg has told us that he will not be able to do this audit next year. Thank you. Linda MacMillan AEA Finance 907-771-3029 From: Linda MacMillan Sent: Thursday, January 10, 2008 4:05 PM To: 'Mike Cunningham’; hfdale@gvea.com; Eckert, Harley (Rick); millerre@muni.org Cc: Shellie M. Helton; Bryan Carey; 'gary@strombergfarm.com' Subject: Final Draft of FY07 Bradley Lake Financial Report Attached are: Final draft of the FYO7 Bradley Lake audit report of Operating and Revenue Funds Recap of refund of FYO7 surplus by utility “4 Please review and let me know if oxay to issue the report, i.e. no further ciuanges. Once the report is issued we should request a meeting, by teleconference, of the BPMC to approve the report and authorize AEA to disburse the refund amounts to the utilities. Linda MacMillan AEA Finance <<FY07SurplusRefund.xls>> <<FinalDraft07BradleyFinancialReport.pdf>> Shauna Howell From: Bryan Carey Sent: Thursday, January 17, 2008 7:19 AM To: Shauna Howell Subject: FW: BPMC Representative Bryan Carey, P.E. Alaska Energy Authority (907) 771-3065 (New Number!) From: Henri F. Dale [mailto: HFDale@gvea.com] Sent: Wednesday, January 16, 2008 6:05 PM To: Bryan Carey Subject: RE: BPMC Representative Brian (yet another one) Newton is GVEA's President and CEO and is our representative. Kate Lamal, VP of Power Supply is the alternate. Henri From: Bryan Carey [mailto:bcarey@aidea.org] Sent: Wednesday, January 16, 2008 12:25 PM To: Henri F. Dale Subject: BPMC Representative Who is the GVEA BPMC representative? Bryan Carey, P.E. Alaska Energy Authority (907) 771-3065 (New Number!) Shauna Howell From: Linda MacMillan Sent: Thursday, January 17, 2008 11:13 AM To: Shauna Howell Ce: gary@strombergfarm.com Subject: RE: Final Draft of FY07 Bradley Lake Financial Report | will try to get them to you this afternoon. Also Gary Stromberg should be dropping by today with the financial statements to distribute as part of the board meeting. | let him know that it will be on 1/23/08 at 10:00 am by teleconference. If you need to contact him with the call-in number, he can be reached at 346-2527. Linda From: Shauna Howell Sent: Thursday, January 17, 2008 9:55 AM To: Linda MacMillan Subject: RE: Final Draft of FY07 Bradley Lake Financial Report Hi Linda, Can you please provide me with the motions for any items you listed below that will be presented at the special teleconference meeting? | would like to include them in my email/fax information that | will be sending out today to the members. From: Linda MacMillan Sent: Tuesday, January 15, 2008 9:26 AM To: tgamble@homerelectric.com; 'Bradley Janorschke, HEA’ Cc: 'Mike Cunningham’; Shauna Howell; Bryan Carey Subject: FW: Final Draft of FY07 Bradley Lake Financial Report Since the BPMC currently does not have a chair, could you as a co-chair convene a BPMC meeting by teleconference with three agenda items: 1-Review and accept FYO7 Audit Report (draft attached) 2-Authorize AEA to refund surplus to utilities 3-Provide direction for procurement of a new auditor. Gary Stromberg has told us that he will not be able to do this audit next year. Thank you. Linda MacMillan AEA Finance 907-771-3029 From: Linda MacMillan Sent: Thursday, January 10, 2008 4:05 PM To: 'Mike Cunningham’; hfdale@gvea.com; Eckert, Harley (Rick); millerre@muni.org Cc: Shellie M. Helton; Bryan Carey; 'gary@strombergfarm.com' Subject: Final Draft of FY07 Bradley Lake Financial Report , Attached are: Final draft of the FY07 Bradley Lake audit report of Operating and Revenue Funds Recap of refund of FYO7 surplus by utility Please review and let me know if okay to issue the report, i.e. no further changes. Once the report is issued we should request a meeting, by teleconference, of the BPMC to approve the report and authorize AEA to disburse the refund amounts to the utilities. Linda MacMillan AEA Finance << File: FYO7SurplusRefund.xls >> << File: FinalDraft07BradleyFinancialReport.pdf >>