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HomeMy WebLinkAboutBradley Lake PMC Meeting Monday, September 22, 1997 2BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES Training Room Chugach Electric Association 5601 Minnesota Drive Anchorage, Alaska Regular Meeting Monday, September 22, 1997 10:00 a.m. 1. CALL TO ORDER Vice Chairman Eugene Bjornstad called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 11:00 a.m. on Monday, September 22, 1997, in the Training Room of Chugach Electric Association, Anchorage, Alaska, to conduct the business of the Committee per the agenda and public notice. 2. ROLL CALL Roll was called by Shauna Dean. The following members were present, and a quorum was established: Eugene Bjormstad, Vice Chairman Chugach Electric Association Dave Calvert City of Seward Norm L. Story Homer Electric Association Dennis McCrohan Alaska Energy Authority Wayne Carmony Matanuska Electric Association Mike Kelly Golden Valley Electric Association 3. PUBLIC ROLL CALL Others Present: Valorie Walker, Alaska Energy Authority Cindy Cartledge, Wohlforth, Argetsinger, Johnson & Brecht Shauna Dean, Alaska Energy Authority Hank Nikkels, Anchorage Municipal Light & Power Jim Walker, Municipality of Anchorage Bradley Lake Project Mar _ 2»ment Committee Meeting Minutes Monday, September 22, 1997 Page 2 of 5 Tim McConnell, Anchorage Municipal Light & Power John S. Cooley, Chugach Electric Association Brian Hickey, Chugach Electric Association Joe Griffith, Chugach Electric Association Jim Hall, Matanuska Electric Association Don Stead, Homer Electric Association Bob Hufman, AEG&T Robert Hansen, Golden Valley Electric Association Bradley Evans, Golden Valley Electric Association Steve Haagenson, Golden Valley Electric Association Ron Saxton, Purchasing Utilities Ken Vassar, Wohlforth, Argetsinger, Johnson & Brecht 4. PUBLIC COMMENT There was no public comment. 5. AGENDA COMMENTS Mr. McCrohan asked that Agenda Item 9 be restructured as follows: Spinning Reserves Update — Joe Griffith Qut-of-Pocket Bond Refunding Costs — Dennis McCrohan Budget Subcommittee Bond Refunding Report — Joe Griffith Settlement Agreement — Ron Saxton GOD, There were no other additions or comments, and the agenda was adopted by unanimous consent. 6. APPROVAL OF MEETING MINUTES - May 20, 1997 MOTION: Mr. Calvert moved to approve the meeting minutes of May 20, 1997. Seconded by Mr. Kelly. There being no changes or additions, a voice vote was taken, and the minutes were unanimously approved as presented. 7. BUDGET SUBCOMMITTEE REPORT A. Bond Refunding (Continued from September 4, 1997) Mr. Griffith recapped the status of the bond refunding. He said there was in the neighborhood of $500,000 in unexpended funds still remaining in the account. Mr. Evans reported that the Budget Subcommittee had recently approved the audit performed by Pete Raiskums. 8. OPERATION AND DISPATCH SUBCOMMITTEE REPORT Mr. McCrohan said Mr. Stead would present the O&D report in Mr. Sieczkowski's absence. Bradley Lake Project Man: nent Committee Meeting Minutes Monday, September 22, 1997 Page 3 of 5 Mr. Stead reported that the operations and maintenance of the project were running smoothly. He said they were scheduled to fly a shack up to the North Fork today for additional stream gauging, but they were unable to do so due to high winds. Mr. Cooley reported that the lake level was currently at 1,167 feet. He said they had had a significant problem last Wednesday in that the line between Anchorage and Kenai tripped with both Bradley units and a Bernice Lake unit on. One Bradley unit had to be taken off line to stabilize the system, and they were unable to control frequency on the Kenai for about 20 minutes. Homer had shed three feeders during this period. He said the cause of the problem had originated on the Kenai side, but the specific problem had not yet been determined. Discussion was heard. Mr. Hickey reported that the O&D Subcommittee had met on the 5th and had discussed the status of the GPS. The consultant had advised that they were currently working on benchmarking the model, and the report on this phase of the project would be completed next week. 9. OLD BUSINESS A. Spinning Reserves Update Mr. Griffith said the ASCC/RCC economic evaluation was still in progress, and that was all he had to report. B. Out-of-Pocket Bond Refunding Costs - Dennis McCrohan MOTION: Mr. McCrohan moved that the Committee approve the following on reimbursement: Incurred out-of-pocket expenses for all parties involved in the refunding, other than the underwriters, be reimburseable by the PMC for work done prior to the pricing stage, and all parties’ incurred out-of-pocket expenses, including the underwriters, be reimbursed by the PMC for activities prior to document closing. Seconded by Mr. Kelly. Mr. McCrohan asked Ms. Walker to address the motion, and discussion was heard. MOTION: Mr. Kelly moved to table action on this item until after the Committee had taken up Agenda Item 9.D. Seconded by Mr. Griffith. There being no discussion, a voice vote was taken, and the motion passed unanimously. This item was tabled until after Agenda Item 9.D. Cs Budget Subcommittee Bond Refunding Report - Joe Griffith Mr. Griffith said Ms. Walker had gone over the first three steps, and he would pick up at that point. He reported that the due diligence was currently being conducted, and the pricing will occur at the completion of the due diligence process. He said after closing, the current estimate was approximately $350,000. Mr. Griffith said the last two steps are secondary offerings and final settlement, and by the time they got to that point, they would have incurred an additional $1.3 million, but that would be picked up in the refunding issues. Bradley Lake Project Mar _ ment Committee Meeting Minutes Monday, September 22, 1997 Page 4 of 5 Mr. Griffith summarized the meeting with Mr. Saxton last week in Seattle. He said action items and topics had been designated to each individual participant. The large action items on the utility side consist of compiling the descriptions of the power purchaser service area, regulations and operations, and financial summaries. He added that the only financial summaries he currently has are Homer's and Chugach's and everyone else needs to submit their audited financial summaries. Discussion was heard. D. Settlement Agreement - Ron Saxton Mr. Saxton reported that the settlement agreement remained unchanged. He said he and Mr. Vassar had reached tentative agreement as follows: Mr. Vassar said he would prefer approval by the different boards, but he would accept execution by the managers if an opinion from their counsel could be provided stating the attorney had reviewed the agreement and concurred that execution by the manager or the board was sufficient to bind the utilities to the agreement without further action. Mr. Saxton further explained that the attorney's opinion would not address the merits of the settlement or anything else about Bradley Lake. Mr. Saxton said if the attorneys and/or boards would accomplish execution of the agreement, he and Mr. Vassar would work on revising the settlement agreement so it could be distributed within the next couple of days. Mr. Kelly suggested that Mr. Saxton fax the Committee members a statement outlining his and Mr. Vassar's agreement in that regard. Mr. Saxton responded that they would be provided a form of opinion to provide their attorneys. Discussion was heard. 9. OLD BUSINESS B. Out-of-Pocket Bond Refunding Costs - Dennis McCrohan MOTION: Mr. Kelly moved to take off the table and place back before the Committee Mr. McCrohan's earlier motion under Item 9.B. concerning reimbursement of out-of-pocket expenses associated with the bond refunding. Seconded by Mr. Story. A voice vote was taken, and the motion passed unanimously. Mr. McCrohan addressed his earlier motion. Mr. Carmony clarified that the estimate was $100,000 for the first part of the motion, with a total of $350,000 through the second part of the motion. Mr. McCrohan said that was correct, and he assumed it would have to be reviewed and approved by the Budget Subcommittee. He added that it did not include PMC or the PMC's counsel's costs. Discussion was heard. MOTION: Mr. Kelly moved to make the $100,000 amount a not-to-exceed amount without prior approval of the Budget Subcommittee. Seconded by Mr. Story. Discussion was heard. There being no further discussion, a voice vote was taken and the motion passed unanimously. Bradley Lake Project Manz_ nent Committee Meeting Minutes Monday, September 22, 1997 Page 5 of 5 The question was called on Mr. McCrohan's main motion: Incurred out-of-pocket expenses for all parties involved in the refunding, other than the underwriters, be reimbursable by the PMC for work done prior to the pricing stage, and all parties’ incurred out-of-pocket expenses, including the underwriters, be reimbursed by the PMC for activities prior to document closing. A voice vote was taken, and the motion passed unanimously. 10. NEW BUSINESS A. Election of Officers The Chair opened the floor for nominations of Chairman, Vice Chairman, and Secretary/Treasurer. MOTION: Mr. Kelly moved to retain the current slate of officers: Mr. Bjornstad, Chairman; Mr. Story, Vice Chairman; and Mr. McCrohan, Secretary/Treasurer, and he asked unanimous consent. Seconded by Mr. Story. There being no other nominations, the Chair closed nominations. A voice vote was taken, and the motion passed unanimously. 11. COMMITTEE COMMENTS Chair Bjornstad advised that they needed to appoint a Chair for the Budget Subcommittee. MOTION: Mr. Kelly moved to appoint Mr. Brad Evans as Chair. Seconded by Mr. Story. There was no discussion, and a voice vote was taken. The motion passed unanimously. A. Next Meeting Date It was the consensus of the Committee that the next meeting of the Bradley Lake Hydroelectric Project Management Committee be scheduled for a teleconference on October 27, 28, or 29, 1997, at the call of the Chair. 12. ADJOURNMENT MOTION: Mr. Story moved to adjourn. Seconded by Mr. Kelly. There being no objection and no further business of the Committee, the meeting was recessed at 11:45 a.m. ae re YA. = Engate Spm rnstad, Ch ATTEST: LY \¢ Col nn Alaska Energy Authority, Secretary OOP aE Bjwnaled Call back te Onda. Ad owned (210: 0S.a-m: Litadlly slate. Wie. 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Met prceeel ® 700,000 iidele pribr @pgrevad of oo The. Lul® Suteoramittes Mikes Kelly ~ befoe decedrig the quan cacccopiie Sa ee ee sath i aaa eee — foL jim. iia + all patie’ och f perked coef = ite — pant despise fessivg : pis to Hing St QL part i = Story ' — : =¥ Fe 2 ™ : Tiwary (“Ve DN Core ees te & . oe as ———————— | A 1 son ther; fi 32 slate of Borns Story Jkee~ Oathe Wngmvesu ConstnA : mm — Nemnete hihdh Brod Eyer 0rChan » J “Budged ach Mts. 4 Dele Chtob 21 tele conference (2 call ot te Chair fae “if. clmunarta ee. serd nt Bradley Lake PROJECT MANAGEMENT COMMITTEE MEETING (Date) Chunach Ekectric A ssccut ion ~The inerg ae (Location) PLEASE SIGN IN REPRESENTING 16 " AEA 18 Sev Ca y 4 KE A 1 AER » |Doviua Me Cate, “| AGA a1 No Oociebsd \ NGA 22 MEA 52. Cri fetk 7 CEA eee 92Q2\IT9884 Chairman: ring Vice Chairman: Shu i Secretary: , ( \ \ } Treasurer’ i ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY /= = ALASKA i ~=ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 10. 11, 13. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA Monday, September 22, 1997 - 10:00 a.m. Chugach Electric Association Training Room — 5601 Minnesota Drive CALL TO ORDER Bjornstad ROLL CALL (for Committee members) PUBLIC ROLL CALL (for all others present) PUBLIC COMMENT AGENDA COMMENTS APPROVAL OF MEETING MINUTES — May 20, 1997 BUDGET SUBCOMMITTEE REPORT a OPERATION AND DISPATCH SUBCOMMITTEE REPORT McCrohan OLD BUSINESS a4 : Car FE A. Spinning Reserves Update oo —tovas— QP of Pocket Boral FA Coste. DV/A B. Budget Subcommittee Bond Refunding _ Griffith Be ated SvblonniHlia Bord Kap Toe vw C. | 4 oy McCrohan D. e phere ‘Ga — Sarton Uo NEW BUSINESS A. Election of Officers pe Bjornstad COMMITTEE COMMENTS A. Next Meeting Date Bjornstad ADJOURNMENT DATE: Sept: FA, 19909 BRADLEY PMC VOTING Ce Agenda Item No. + Q + aR ve 1 l Nut of Veleb Expenses ae ABS : YES NO ABS YES NO ABS CITY OF SEWARD 01% |» L | MATANUSKA ELEC ASSOC 14% "a rE CHUGACH ELEC ASSOC 30% el HOMER ELEC ASSOC 12% GOLDEN VAL ELEC ASSOC 17% |4 | MUNI LIGHT & POWER 26% [Vv ALASKA ENERGY AUTHORITY V A=4+ OVER 51% B = AEA CONCUR With A 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. 11) Determination of rules, procedures and accounts necessary to manage project when no bonds outstanding. 4) Determination of annual project costs after 12) Evaluation and approval of optional project each FY. work and compensation for such work. 5) Evaluation of necessity for and scheduling of 13) Application of insurance claims proceeds not required project work. governed by bond resolution. 6) Determination of appropriate amount of 14) Approval of procedures and any individual insurance. utility agreements relating to electric power reserves for project. 7) Adoption of additional minimum funding amounts for renewal and contingency reserve 15) Approval of consultants. fund above that required by bond resolution. VOTING METHOD C: 8) Selection among alternate methods that involve AEA for funding required project Unanimous vote by all (including AEA) work. VOTING METHOD D: 9) Adoption or amendment of procedural committee rules (except dispute resolution). Majority vote (including AEA) 10) Adoption of project maintenance schedules. Election of Officers 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% BRADLEY PMC VOTING DATE: YES NO ABS YES NO oe | _ | ABS YES NO ABS 14% l [ [| [ ] [ [| | | 3074 mM om se 12% [J ees 17% (T El 2% [Tf] CLI} CLT] Litd CET) Co B = AEA CONCUR With A 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) 4) 5) 6) 7) 8) 9) Establishment of FY estimated annual payment obligation and schedule of each purchaser. Determination of annual project costs after each FY. Evaluation of necessity for and scheduling of required project work. Determination of appropriate amount of insurance. Adoption of additional minimum funding amounts for renewal and contingency reserve fund above that required by bond resolution. Selection among alternate methods that involve AEA for funding required project work. Adoption or amendment of procedural committee rules (except dispute resolution). 10) Adoption of project maintenance schedules. 11) 12) 13) 14) 15) Determination of rules, procedures and accounts necessary to manage project when no bonds outstanding. Evaluation and approval of optional project work and compensation for such work. Application of insurance claims proceeds not governed by bond resolution. Approval of procedures and any individual utility agreements relating to electric power reserves for project. Approval of consultants. VOTING METHOD C: Unanimous vote by all (including AEA) VOTING METHOD D: Majority vote (including AEA) Election of Officers 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 BRADLEY PMC VOTING DATE: YES NO ABS YES NO ABS YES NO ABS 01% | 14% | | | 30% 1 12% [ T ara 17% | 26% [_[ | | Wa [ | 1 J [| LTT 4) 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. 13) Application of insurance claims proceeds not governed by bond resolution. 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 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% BRADLEY PMC VOTING DATE: Yes NO ABS YES NO aps YES NO ABS 01% | | | | 14% nmin {| [ ] 30% [_]| | | ] m% CLIT} CLE) CLI 17% | Pt 4 26% L Lo eo Lak | B = AEA CONCUR With A 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) 4) 5) 6) 7) 8) 9) Establishment of FY estimated annual payment obligation and schedule of each purchaser. Determination of annual project costs after each FY. Evaluation of necessity for and scheduling of required project work. Determination of appropriate amount of insurance. Adoption of additional minimum funding amounts for renewal and contingency reserve fund above that required by bond resolution. Selection among alternate methods that involve AEA for funding required project work. Adoption or amendment of procedural committee rules (except dispute resolution). 10) Adoption of project maintenance schedules. 11) 12) 13) 14) 15) Determination of rules, procedures and accounts necessary to manage project when no bonds outstanding. Evaluation and approval of optional project work and compensation for such work. Application of insurance claims proceeds not governed by bond resolution. Approval of procedures and any individual utility agreements relating to electric power reserves for project. Approval of consultants. VOTING METHOD C: Unanimous vote by all (including AEA) VOTING METHOD D: Majority vote (including AEA) Election of Officers