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HomeMy WebLinkAboutBradley Lake PMC Meeting Monday Febuary 04, 2008 1 ATERWYNNEur ATTORNEYS AT LAW Bradley Lake Project Management Committee Suite 1800 222 SW. Columbia Portland, OR 97201-6618 503-226-1191 Fax 503-226-0079 January 21, 2008 c/o Brad Janorschke Invoice 1081947 5601 Electron Drive 103918-0000 Anchorage AK 99518 RECEIVED KHG FEB 1 2008 AMOUNT ENCLOSED 5S. EXECUTIVE OFFICE Please detach this stub and return with your remittanes Legal Services Regarding General Date Description Tkpr Hours Value 12/02/07 Email report to Bill Stewart regarding discussions KHG .20 63.00 between AEA representatives, HEA representatives, and BPMC counsel regarding issues to be addressed by BPMC Finance Committee and result of same. 12/10/07 Confer regarding Bradley Lake PMC issues with KHG -30 94.50 changes at Chugach; consider next steps. 12/10/07 Perform due diligence in preparation of firm SLL 2.00 280.00 response to request from client for opinion with respect to accountants’ audit of year-end financial statements; preparation of firm response to client's request for opinion with respect to audit of year-end financial statements. Timekeeper Hours Rate Value Kirk H. Gibson -50 315.00 157.50 Sandy L. Lissman 2.00 140.00 280.00 2.50 437.50 Total Fees $ 437.50 Total Current Charges $ 437.50 Amount Due From Previous Statement(s) $4,615.00 Service Charges $ 34.41 TOTAL AMOUNT NOW DUE (including current and previous charges) $5,086.91 BA CE DUE LPON RECEIPT ACCOUNTS NOT PAID WHEN DUE WILL ACCRUE A SERVICE CHARGE RATE AGREED BY THE CLIENT OR NINE PERCENT PER ANNUM, WHICHEVER IS GREATER This starement may not include expense items such as telephone, photocopies, filing fees. etc., which oc ATERWYNNE itp Federal 1D 93-0394748 r later in the month PLEASE DELIVER TO THE FOLLOWING: Brad Evans Brian Newton Bradley Janorschke Wayne Carmony Jim Posey Tim Barnum Kirk Gibson Chugach Electric Association Golden Valley Electric Association Homer Electric Association Matanuska Electric Association Anchorage Municipal Light & Power City of Seward AterWynne Number of pages including cover sheet: (907) 762-4514 (907) 458-5951 (907) 335-6224 (907) 689-9368 (907) 263-5204 (907) 224-4085 (503) 226-0079 Notification of Bradley Lake Project Management Committee Meeting A regular meeting is scheduled to be held on Monday, February 4, 2008, at 10:00 a.m. For additional information contact Bradley Janorschke, Vice Chairman. 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# Packet information will be sent out shortly. Please call Shauna at (907) 771-3028 with questions. Pat * * * Transmission Result Report (MemoryTX) ( Jan.29. 2008 12:06PM) * * * 1) AIDEA/ZAEA 2) Date/Time: Jan-29. 2008 11:52AM File . Page No. Mode Destination Pg (s) Result Not Sent 7110 Memory TX 97624514 Pp. 2 Ok 919074585951 OK 919073356224 OK 96899368 OK 92635204 OK 919072244085 E-3) 3) P.1-2 915032260079 OK Reason for error —.1) Hang up or line fail —E.2) B —E.3) No answer —.4) N PLEASE DELIVER TO THE FOLLOWING: Brad Evans ‘Chugach Electric Association (907) 762-4514 Brian Newton Golden Valley Electric Association (907) 458-5951 we Bradley Janorschke Homer Electric Association (907) 335-6224 Wayne Carmony Matanuska Electric Association (907) 689-9368 Jim Posey Anchorage Municipal Light & Power (907) 263-6204 Tim Bamum City of Seward (907) 224-4085 Kirk Gibson AterWynne (503) 226-0079 Number of pages including cover sheet: leaded + Pp. | * * ¥ Transmission Result Report (MemoryTX) ( Jan.29. 2008 3:12PM) * * * 1) AIDEA/AEA 2) Date/Time: Jan.29. 2008 3:11PM File Page No. Mode Destination Pg (s) Result Not Sent TTT Memory TX 95637012 | OK Reason for error E-1) Hang up or line fail E.2) Busy. E.3) No answer E.4) No facsimile connection Key ADEN. I= ALASKA He Fe Aptana teem FACSIMILE TRANSMITTAL To: “Lele FAX #: 563-7012. FROM: Shown Hoved/ DATE: lela sd Number of pages including cover page: f COMMENTS: Pleo. Pik p xe veto = 4 2163 4270032 40276633, ~™ Sah # 218 635, Mribor' + #277636 “These des ne Mad office spk Yow NOTICE: This facsimile may contain confidential information that is being transmitted to end is intended “813 West Northem Lights Boulevard « Anchorage, Alaska 90503-2405 ‘wow nicen org + 907/771-3000 # FAX 907/771-3044 « Tol Free (Alaska Oniy) 888/300-8534 © www akenergyauthority org Bradley Lake Project Management Committee Meeting Page 1 of 1 Home Go Back . : Public Notices Online Public Notice Bradley Lake Project Management State of Alaska Committee Meeting Submitted by: bjfuglestad/08 Date Submitted: 01/29/2008 11:56 AM Date Modified: Ak Admin Journal: [not printed] Attachments: No files attached Bradley Lake Project Management Committee Meeting Category: Public Notices Department: Commerce Community & Economic Development Publish Date: 01/29/2008 Location: Anchorage Coastal District: N/A Body of Notice: ALASKA ENERGY AUTHORITY Regular Meeting Public Notice Bradley Lake Project Management Committee Notice is hereby given that the Bradley Lake Project Management Committee will hold a regular meeting on Monday, February 4, 2008 at 10:00 a.m. 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 II 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. Revision History: 01/29/2008 11:56:25 AM by bjfuglestad/08/State/Alaska/US $$WebClient [Anon] Home Page Notices by: Department | Category | Publish Date http://notes4.state.ak.us/pn/pubnotic.nsf/ec52605f7¢ 156e7a8925672a0060a9 1 b/4da58b372... 1/29/2008 Shauna Howell From: Bryan Carey Sent: Thursday, January 24, 2008 2:40 PM To: Shauna Howell Subject: BPMC For the February BPMC meeting please add to the agenda “Designation of BPMC Representatives”. Bylaws Article 4 says that each member shall notify all other members in writing of the names, addresses and telephone numbers of its representative and designated alternate. Letters need to be updated. Bryan Carey, P.E. Alaska Energy Authority (907) 771-3065 (New Number!) “Shauna Howell From: Gamble, Teresa [TGamble@HomerElectric.com] Sent: Monday, January 28, 2008 2:59 PM To: Shauna Howell Subject: RE: BPMC Agenda Items | haven't received any NO responses so please move forward. Thanks, Teresa Gamble Homer Electric Association (907) 283-5831 x2334 From: Shauna Howell [mailto: SHowell@aidea.org] Sent: Monday, January 28, 2008 2:54 PM To: Gamble, Teresa Subject: RE: BPMC Agenda Items Just a quick check to see if February the 4th worked for the group from the poll you were working on last week. As soon as | know, | can get the notice posted (| need to have a 5 day window for that, so sorry for the rush). From: Gamble, Teresa [mailto: TGamble@HomerElectric.com] Sent: Fri 1/25/2008 1:24 PM To: Shauna Howell Subject: RE: BPMC Agenda Items This works so I'll send out the preliminary notice on my end. Thanks for all your help. Have a wonderful weekend!!! Teresa Gamble Homer Electric Association (907) 283-5831 x2334 From: Shauna Howell [mailto:SHowell@aidea.org] Sent: Friday, January 25, 2008 12:25 PM To: Gamble, Teresa Subject: RE: BPMC Agenda Items Importance: High Hi there, Monday the 4" of February at 10:00 a.m. is a yes! © | have confirmed that our board room will be available for taping as well. My suggestion at this point would be to make sure that day still works for Brad and then | can send out the notification either today or Monday about the meeting. I'll leave it up to Brad if he wants to poll the group at this point. Usually | don’t, | just send out my email stating when the next meeting will be. 1 “Let me know and I'll send my email to the group as soon as | hear from you. Thanks for all your help and patience! From: Gamble, Teresa [mailto:TGamble@HomerElectric.com] Sent: Friday, January 25, 2008 10:40 AM To: Shauna Howell Subject: BPMC Agenda Items Tentative agenda items for the upcoming board meetings: February 4" / 10am-1pm 1) Governance 2) Legal Representation March 12" / 10am-12pm 1) Budget 08-09 2) O&M Agreement 3) Auditor Selection Teresa Gamble Homer Electric Association (907) 283-5831 x2334 “Shauna Howell From: Bryan Carey Sent: Tuesday, January 29, 2008 11:14 AM To: Shauna Howell Subject: RE: Any word from Brian on the 4th? | have to post the ad today. He’s ina meeting. Post ad. Thanks, Bryan Carey, P.E. Alaska Energy Authority (907) 771-3065 (New Number!) From: Shauna Howell Sent: Tuesday, January 29, 2008 9:30 AM To: Bryan Carey Subject: Any word from Brian on the 4th? I have to post the ad today. 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 “Shauna Howell From: Janorschke, Brad [bjanorschke@HomerElectric.com] Sent: Monday, January 28, 2008 2:49 PM To: Wayne Ce: Bradley Evans; Brian Newton; Bryan Carey; Jim Posey; Rick Baldwin; Shauna Howell; Tim Barnum; Brenda Fuglestad; Connie Owens; Saxton, Susan; Gamble, Teresa; OHare, Charles (Charlie) Subject: RE: BPMC Board Meeting Wayne, At the present time we have two BPMC meetings scheduled. The tentative agenda’s are as follows: February 4, 2008 e Governance — vote in a vice-chair e Legal Representation — discuss conflict of issue concerns March 12, 2008 e Budget e Auditor Selection e O&M Agreement I do not expect the February 4" meeting to be very lengthy however; the participants may have different expectations. Let me know if you have any questions. Thanks. Brad Janorschke From: Wayne [mailto:harley@matanuska.com] Sent: Friday, January 25, 2008 3:29 PM To: Janorschke, Brad Subject: RE: BPMC Board Meeting Teresa What subjects are going to be covered in this meeting? Wayne From: Gamble, Teresa [mailto:TGamble@HomerElectric.com] On Behalf Of Janorschke, Brad Sent: Friday, January 25, 2008 3:13 PM To: Bradley Evans (brad_evans@chugachelectric.com); Brian Newton (blIn@gvea.com); Bryan Carey; Jim Posey; Rick Baldwin (rick@baldwinandbutler.com); Shauna Howell (SHowell@aidea.org); Tim Barnum; Wayne Carmony; Brenda Fuglestad (bfuglestad@aidea.org); Connie Owens; DavidovicsLR@ci.anchorage.ak.us; Patty Worrell; Susan Redlin Cc: Saxton, Susan Subject: BPMC Board Meeting When: Monday, February 04, 2008 10:00 AM-1:00 PM (GMT-09:00) Alaska. Where: Anchorage - AEA Board Room *, | * * * Transmission Result Report (MemoryTX) ( Jan-s1. 2008 11:29AM) * * * 1) AIDEAZAEA 2) Date/Time: Jan-3l. 2008 11:22AM File Page No. Mode Destination Pg (s) Result Not Sent 7127 Memory TX 919072244085 P. 2 E-3) 3) P.1-2 oo a a i —E.1) Hangs up or line fail —.2) Busy E.3) No answer E.4) No facsimile connection PLEASE DELIVER To THE FOLLOWING: Brad Evans Chugach Electric Association (907) 762-4514 Brian Newton Golden Valley Electric Association (907) 458-5951 Bradley Janorschke Homer Electric Association (907) 335-6224 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 (503) 226-0079 Number of pages including cover sheet: 2. Shauna Howell From: Shauna Howell Sent: Friday, February 01, 2008 3:03 PM To: ‘Bob Day, HEA’; 'Brad Evans, CEA’; Bradley Janorschke, HEA’; 'Brenda Applegate, AEA’; ‘Brenda Fuglestad, AEA’; 'Brian Bjorkquist, Dept. of Law’; 'Brian Newton, GVEA’; 'Bryan Carey, AEA’; 'Charlie O'Hare, HEA’; Christa Caldwell; Connie Owens, Exec. Secretary @ CEA; 'Erin Leaders, Exec. Secretary @ City of Seward’; 'Gary Stromberg’; 'Henri Dale, GVEA’; ‘James Hemsath, AEA’; ‘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'; ‘Sara Fisher-Goad, AEA’; 'Susan Redlin, Exec. Secretary @ GVEA’; 'Teresa Gamble, HEA’; 'Tim Barnum, City of Seward’; 'Wayne Carmony, MEA’ Subject: Bradley Lake PMC Meeting Agenda and Draft Minutes for Approval at Monday, February 4, 2008 meeting Attachments: Agenda for 2-4-2008 BPMC Mtg.doc; September 27, 2007.doc; January 23, 2008.doc Importance: High Attached is an agenda and draft meeting minutes for approval at the Monday, February 4, 2008, BPMC meeting to be held at 10:00 a.m. in the AIDEA/AEA board room. These documents will also be sent via fax. For reference, the teleconference number is: 1-800-315-6338 Code: 3028# Thank you. 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 PLEASE DELIVER TO THE FOLLOWING: Brad Evans Chugach Electric Association (907) 762-4514 Brian Newton Golden Valley Electric Association (907) 458-5951 Bradley Janorschke Homer Electric Association (907) 335-6224 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 (503) 226-0079 Attached is an agenda and draft meeting minutes for the Monday, February 4, 2008 BPMC meeting. This information will come via fax and email. Number of pages including cover sheet: / 0 Alaska Industrial Development and Export Authority KK x “AIDEN. /= ALASKA BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING AGENDA Monday, February 4, 2008 — 10:00 a.m. (via electronic media at the AIDEA/AEA Board Room - 813 W. Northern Lights Blvd.) 1; CALL TO ORDER Janorschke 2; ROLL CALL (for Committee members) 3. PUBLIC ROLL CALL (for all others present) 4. PUBLIC COMMENT 5. AGENDA COMMENTS 6. APPROVAL OF MEETING MINUTES September 27, 2007 January 23, 2008 7. NEW BUSINESS A. Governance B. Legal Representation 8. COMMITTEE REPORTS / COMMENTS A. Operators Report B. Next Meeting Date Janorschke 9. ADJOURNMENT 813 West Northern Lights Boulevard e Anchorage, Alaska 99503-2495 www.aidea.org ¢ 907/771-3000 @ FAX 907/771-3044 e Toll Free (Alaska Only) 888/300-8534 e www.akenergyauthority.org BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES (Held @ CEA’s Board Room) Anchorage, Alaska Thursday, September 27, 2007 — 10:00 a.m. A: CALL TO ORDER Chair Stewart called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:00 a.m. on Thursday, September 27, 2007, from Chugach Electric’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: Bill Stewart Chugach Electric Association Steve Haagenson Golden Valley Electric Association Bradley Janorschke Homer Electric Association Don Zoerb Matanuska Electric Association Jim Posey Anchorage Municipal Light and Power Tim Barnum City of Seward Bryan Carey Alaska Energy Authority 3. PUBLIC ROLL CALL Tuckerman Babcock, MEA Kirk Gibson, AterWynne LLP Brian Bjorkquist, Department of Law Doug Hall, AML&P Henri Dale, GVEA Charlie O’Hare, HEA Rick Baldwin, HEA Rick Eckert, HEA Lee Thibert, CEA Tom Johnston, ARECA Insurance Exchange Carole Harbeson, ARECA Insurance Exchange Kathy Collins, ARECA Insurance Exchange Bob Price, AML&P Linda MacMillan, AEA Mike Cunningham, CEA Rick Miller, AML&P Page 1 of 5 PUBLIC ROLL CALL (Continued) Lou Agi, AML&P Phil Steyer, CEA Christa Caldwell, AEA Shauna Howell, AEA 4. PUBLIC COMMENT There were no public comments. 5. AGENDA COMMENTS Move the O&M Contract item up and move Legal Bills/Service down and make it Item D. Mr. Day added a request for Seward and MEA to be added at the end of the meeting. 6. APPROVAL OF MEETING MINUTES ~ February 23, 2007 and June 26, 2007 MOTION: Mr. Posey moved to approve the minutes of the February 23, 2007 and the June 26, 2007 meetings, seconded by Mr. Haagenson. The meeting minutes were unanimously approved as presented. i NEW BUSINESS 7A. Fixed Wing Aircraft Services HEA had some internal concerns about the flight services they were using - both for the protection of their employees and for the financial exposure to the BPMC. HEA used Maritime Helicopters for a two-week period while trying to come up with a solution. HEA found a 206 that they are leasing from a lodge across the bay for the winter months through April. HEA will look at their policies and expectations and guidelines and sometime this winter will gather the financial information they have. In the interim, HEA will gather more information to obtain a clear understanding of what the expectations are of both the aircraft and the pilots. Mr. Janorschke noted that both policies are being reviewed by attorneys. Mr. Haagenson recommended council for the BPMC does their own review as well. Chair Stewart asked AterWynne to take a look at the policies. HEA will have their attorney forward their findings. 7B. Insurance Mr. Carey noted that earthquake insurance, the way it was procured, was underwritten for Bradley for $50M. The probable maximum loss for Bradley is $40M, so for the last couple of years it’s been $20M of insurance for single occurrence for ARECA and $20M through the state broker, Willis. We recently found out that ARECA’s ability to insure went to $50M. We now have $50M through ARECA and $20M through Willis. Currently, Bradley has earthquake insurance of $70M. Because of the changes of the insurance market, it may be good for the Budget Finance Subcommittee to look at how we procure insurance in the future. Mr. Posey asked if the cost was increasing? Page 2 of 5 Mr. Carey responded that the cost went down from last year, so this year we have more insurance at a lower cost. ARECA added that the reason why the policy coverage went up from $20M to $50M is because ARECA Insurance Exchange renegotiated their insurance contract for the '07-’08 year and they were able to negotiate better terms for this year. ARECA does regularly practice re-marketing insurance every year for cost purposes and to insure that ARECA’s interests are protected, they will be going to market again for the 08 year. Mr. Carey suggests that the Budget Finance Subcommittee look at this and property insurance in general. There have been recommendations made by insurance consultants to the BPMC before and there are Bradley recommendations in there. Mr. Haagenson posed the questing - if we are getting twice as much for half the price, why would we investigate? Are we looking at different vendors? Mr. Carey responded that we are looking more at would we like the process to stay the same or have a different process. Mr. Carey is not recommending that we change vendors or not, but he doesn't believe that this has been looked at for a while. Mr. Carey noted that the BPMC consultant looked at some specific insurance policies and made recommendations. Some of them have been resolved or acted on or have input from the other utilities. The other standpoint, the reason why we requested the O&M contract be put right underneath the insurance agenda item is because some of the insurance flows into the O&M contract. 7C. O&M Contract Mr. Baldwin noted they have been waiting for the insurance issue to be resolved before we got into the O&M discussions. About a year ago, the issue was placed before the BPMC as to whether or not the O&M Agreement should be amended. HEA offered up a 5-year term. AterWynne has issued up another draft, which adds some additional changes. HEA offered up what they thought the changes should be. The Agreement really does need to be looked at — the only question is what is the process for doing that? As Mr. Carey and Mr. Bjorkquist indicated, the insurance issues also flow into that. It was agreed that the Budget Subcommittee look at the O&M Agreement and the issues that are raised, come to some agreement on the business decisions that need to be made, and then have the lawyers review. Chair Stewart asked that if a meeting were called in January or February, would they be prepared to vote it? He noted that they have to be fair to HEA’s needs. Everybody is very supporting to voting a 5-year deal, it is the details that need to be cleared up. Chair Stewart stated that they will either agree or come to the BPMC with the two positions and we'll either agree or disagree and we'll vote on it and we'll move on. 7D. Legal Bills/Services It was noted by Mr. Gibson of AterWynne, that the BPMC was paying bills which more rightly go to the Railbelt Utility Group (RUG). Mr. Gibson met with Mr. Bjorkquist and discussed the bills and made sure that there wasn’t any crossover and noted that the bills be re-issued to the BPMC. Those bills have been re-issued and what is now needed is a ratification of the bills and request for payment. Mr. Bjorkquist’s understanding is that because the bills were billed Page 3 of 5 through the RUG, there is ambiguity through the contracts, and this clears up the ambiguity so that makes it ready to go forward. MOTION: Mr. Haageson moved to reinforce the authority of the BPMC to approve the proper bills submitted for the BPMC agreement. Seconded by Mr. Posey. Chair Stewart opened the floor for discussion. Mr. Babcock noted that there have been various motions made directing the Chairman to come back to the BPMC with a recommendation for a neutral counsel to represent the BPMC. MEA noted their concern with a conflict of interest in using AterWynne as the BPMC counsel. MEA objects to the motion on the grounds that there is a conflict of interest in using AterWynne as BPMC counsel as well as the BPMC not having been able to find a neutral attorney to represent the BPMC. MOTION: Mr. Haagenson restated the motion to reinforce the authority of the Chairman to authorize and approve for payment valid bills submitted to the Chairman for the BPMC purposes. This motion isn’t really about giving them more power, it says when the Chairman gives a bill to AEA to pay, that they should pay it. Their responsibility should be — is ita BPMC purpose. Mr. Gibson stated that there is no conflict of interest so long as the interests of the party align. When he works for the BPMC, he does it for all the utilities jointly as BPMC. As long as the utilities, under the BPMC are aligned, there is no conflict. Mr. Babcock stated that MEA maintains their objection. A voice vote was taken and the motion passed: City of Seward, CEA, HEA, GVEA, AML&P, and AEA for the motion, and MEA opposed. 7E. Anonymous Complaint Mr. O'Hare briefed the group on a letter siting difficulties in the operation and maintenance at Bradley Lake. A response was written and given to the BPMC members explaining the investigation into each allegation explaining how these allegations were baseless. Kaufman Engineers provided a review of the fire system. They have an appropriate valve, which will be completed by the end of the year and installed. We don't feel it was a serious problem and did not cause the fire system to be non-functional, it was simply a leaky valve. During an outage, an inspection was done by Mr. Day on the other areas of concern. The coating on the piping — the piping was carbon steel rather than stainless steel, which was the original. The carbon steel piping was coated with epoxy, much like most of the equipment. Mr. Day found no problems. He also did a brief look of the wells that were cited in the anonymous letter, and found no problem with those wells that he could visually see. In the response it explains that they are in the process of putting together a new governor and the wells were looked at and were addressed with the contractor and they were deemed to be just fine. The quality is well within standards of industry practice. Some of the reps of the utilities and the O&D Committee have all visited the site, most of which have gone down into the runner pit where the things of concern are located and we have heard Page 4 of 5 nothing of any concern in terms of feedback. Each visitor had praised HEA’s making of the facility itself. We continue to feel there is no concern in any of these allegations and no basis for these allegations. HEA is diligent in the operation and maintenance. 7F. Election of Officers MOTION: Mr. Janorschke motioned to keep the board as is. Seconded by Mr. Haagenson. A voice vote was taken and the motion passed unanimously. 8A. Operator’s Reports Mr. Day reported that both runners have been replaced on unit 1 and 2 and they are running well. They have replaced the microwave system and moved it down on the road and installed a new cable in the fiber optic system that runs along the road, which in turn powers the gate diversion tunnel at the dam. They have successfully tested the gate house control as well as the diversion tunnel and are happy to report they did not drain the lake while doing the testing. Normal maintenance has gone on and they have completed the annual maintenance for the year during the shutdown on the runners. The relays have been replaced on the Soldotna- Bradley Lake line. There were some issues with those getting those fully operational. The new microwave system has solved those communication problems. Mr. Day had a request for Seward and MEA that they please inform him who their representatives are so that they will be able to receive all communication from the O&D Committee. Chair Stewart noted.that all organizations need to submit a letter to the Chair of their primary and alternate members. The next meeting date will be left at the call of the Chair. 9. ADJOURNMENT The meeting adjourned at 11:10 a.m. BY: ATTEST: Alaska Energy Authority, Secretary Page 5 of 5 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. BY: ATTEST: Alaska Energy Authority, Secretary Page 3 of 3 * * * Transmission Result Report (MemoryTX) (Feb. 1. 2008 3:32PM) * * * 1) AIDEA/AEA Date/Time: Feb. 1. 2008 2:58PM File Page No. Mode Destination Pg (s) Result Not Sent 7129 Memory TX 97624514 P. 10 OK 919074585951 OK 919073356224 OK 96899368 OK 92635204 OK 919072244085 E-$) 3) P.1-10 915032260079 OK Reason for error E.1) Hang up or line fail —E.2) Busy E.3) No answer E.4) No facsimile connection PLEASE DELIVER TO THE FOLLOWING: Brad Evans Chugach Electric Association (907) 762-4514 Brian Newton Golden Valley Electric Association (907) 458-5951 Bradley Janorschke — Homer Electric Association (907) 335-6224 Wayne Carmony ——-Matanuska Electric Association (907) 689-9368 Jim Posey Anchorage Municipal Light & Power (907) 263-5204 Tim Bamum City of Seward (907) 224-4085 Kirk Gibson AterWynne (503) 226-0079 Attached is an agenda and draft meeting minutes for the Monday, February 4, 2008 BPMC meeting. This information will come via fax and email. Number of pages including cover sheet _ /O_