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Home My WebLink AboutBradley Lake PMC Regular Meeting Minutes 03-30-2010BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES REGULAR MEETING (via electronic media at the Alaska Energy Authority’s Board Room) Anchorage, Alaska [Due to technical difficulties audio not available for this meeting] March 30, 2010 - 10:00 a.m. 1. CALL TO ORDER Vice Chair Alternate Harvey Ambrose called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:05 a.m. on Tuesday March 30, 2010, from the AEA boardroom, Anchorage, Alaska, to conduct the business of the Committee per the agenda and public notice. 2. ROLL CALL Roll was called by May Clark. The following members were present: Joe Griffith Matanuska Electric Association (teleconference) Burke Wick Chugach Electric Association Harvey Ambrose Homer Electric Association (teleconference) Henri Dale Golden Valley Electric Association Jim Posey Anchorage Municipal Light & Power Bryan Carey Alaska Energy Authority 3. PUBLIC ROLL CALL Mike Cunningham, CEA (teleconference) Don Zoerb, Matanuska Electric (teleconference) Bob Day, HEA Jim Kingrey, HEA Rick Miller, AML&P Doug Hall, AML&P Bob Price, AML&P Kirk Gibson, McDowell Rackner & Gibson PC (teleconference) Rich Wilson, Alaska Ratepayers Valorie Walker, AEA Linda MacMillan, AEA Shauna Howell, AEA May Clark, AEA 4. PUBLIC COMMENT Rich Wilson, Alaska Ratepayers, stated they would like to heighten awareness of what a major hydroelectric facility like Susitna or Chakachamna looks like. They have met with the legislature, FERC, utilities, and AEA RIRP Advisory group and propose VIP (administration, legislative, mayoral and other Railbelt leaders) educational site visits to Bradley Lake or Cooper Page 1 of 5 BPMC Minutes 3/30/2010 Lake hydro projects this coming summer hosted by the BPMC and Alaska Ratepayers. There is an apparent lack of knowledge among current leaders about large hydro projects and they need to be educated. Alaska Ratepayers has a website that can be visited for more information. 5. AGENDA COMMENTS / MOTION FOR APPROVAL There were no agenda comments. Following a roll call vote, the agenda was approved as presented. 6. APPROVAL OF MEETING MINUTES — December 30, 2009 and February 4, 2010 MOTION: Mr. Dale moved to approve the minutes of the December 30, 2009 and February 4, 2010 meetings. Seconded by Mr. Wick. A roll call vote was taken and the meeting minutes were unanimously approved as presented. a NEW BUSINESS 7A. _ Bank of America Underwriter Mr. Cunningham stated the Finance Committee met and reviewed responses to an RFP for refunding of the power revenue refunding bonds. The top three responses were evaluated and Bank of America was selected. The Finance Committee recommends the BPMC approve this motion. MOTION: Mr. Zoerb moved that the Bradley Lake Project Management Committee retain Bank of America Merrill Lynch as underwriter for refunding the Power Revenue Refunding Bonds, Fifth Series - $30,640,000. Seconded by Mr. Wick. A roll call vote was taken: City of Seward: Absent Matanuska Electric Association: Yes Chugach Electric Association: Yes Homer Electric Association: Yes Golden Valley Electric Association: Yes Anchorage Municipal Light & Power: Yes Alaska Energy Authority: Yes The motion unanimously passed. 7B. BPMC Proposed FY 11 Budget Mr. Cunningham stated the Finance Committee met and evaluated the proposed budget. Of major note is a decrease in R&C Fund repayments because FY10 was the last year to pay for governor and runner projects. There is a slight increase in debt service and the FERC Land Use Fees increased. The Finance Committee recommends the BPMC approve this motion. MOTION: Mr. Wick moved that the Bradley Lake Project Management Committee approve the fiscal year 2011 Operating and Capital budget as presented. Seconded by Mr. Dale. Page 2 of 5 BPMC Minutes 3/30/2010 A roll call vote was taken: City of Seward: Absent Matanuska Electric Association: Yes Chugach Electric Association: Yes Homer Electric Association: Yes Golden Valley Electric Association: Yes Anchorage Municipal Light & Power: Yes Alaska Energy Authority: Yes The motion unanimously passed. 7C. Bradley Improvement Project The Upper Battle Creek potential water source was discussed. It is located two miles west of the project and is on State DNR land. Pre-feasibility engineering would cost about $75,000 and would take two to three years. It could provide more information on environmental flows and fish habitat. The diversion means Bradley would have an increase of approximately 50,000 MWhrs. One acre foot of water at Bradley is nearly equal to 1 MWhr. The diversion would most likely require an amendment to the existing Bradley license. A short road could be built from the existing Bradley road to the tunnel exit. A tunnel would be constructed and would be used for initial access to the 2,000’ level to build the small diversion dam. The $75,000 investment is a good start if it increases hydro. Future funding for overall costs is yet to be determined. MOTION: Mr. Day moved that the Bradley Lake Project Management Committee approve the Alaska Energy Authority to proceed with feasibility study and permitting for a diversion structure on Upper Battle Creek to improve project energy production; and approve related costs up to $75,000 incurred between March 30, 2010 and June 30, 2010 be paid for by the FY2010 project budget. Seconded by Mr. Carey. A roll call vote was taken: City of Seward: Absent Matanuska Electric Association: Yes Chugach Electric Association: Yes Homer Electric Association: Yes Golden Valley Electric Association: Yes Anchorage Municipal Light & Power: Yes Alaska Energy Authority: Yes The motion unanimously passed. 8. OLD BUSINESS 8A. FAA License for Cameras Mr. Gibson reported that the parties have ironed out all issues and the license granting the FAA the ability to place a camera on the Bradley Lake Hydro facility premises is ready for execution Page 3 of 5 BPMC Minutes 3/30/2010 by AEA. The FAA conceded on all outstanding issues. The license term shall end on March 15, 2027 and either party may cancel the License with 60 days written notice. Counsel recommends the BPMC approve the motion. MOTION: Mr. Posey moved the Bradley Lake Project Management Committee direct the Alaska Energy Authority to proceed with the execution of the License [DTFAAL-09-00014] with the U.S. Department of Transportation Federal Aviation Administration for placement of an aviation weather camera on the Bradley Lake Hydroelectric property. Seconded by Mr. Wick. A roll call vote was taken: City of Seward: Absent Matanuska Electric Association: Yes Chugach Electric Association: Yes Homer Electric Association: Yes Golden Valley Electric Association: Yes Anchorage Municipal Light & Power: Yes Alaska Energy Authority: Yes The motion unanimously passed. 8B. Update on FERC Land Use Fees The US Court of Appeals granted BPMC’s intervention where other dam owners are protesting FERC’s imposition of land use fee increases. FERC has not issued its fee schedule yet for 2010 and may possibly be awaiting the court ruling. To date, the BPMC has been billed approximately $12,000 in legal fees. 8C. Status Report on Soldotna SVC - tabled until next meeting. 8D. Possible Debt Refinancing Mr. Cunningham stated this item was covered under 7A, New Business; therefore no further discussion was necessary. The BPMC agreed. 9. COMMITTEE REPORTS / COMMENTS 9A. Operators Report Transmission line frost jacking repairs were completed over the weekend and will be inspected again on April 2, 2010. There are 14 remaining piles to be stored at Bradley. A PowerPoint presentation was given on this subject and on the lake levels. The document control project first stage is complete, converting drawings to electrical format, entering the final phase of the project and has implemented new EDMS system. Duplex modifications RFP’s are out and a site visit has occurred, bids are due in a week and a half and the BPMC will be notified of the results. Eagle Lake hut removal and transport to Homer over DNR/Borough land is estimated at $3,000, awaiting permit as the land has been transferred to the Borough. Received quotes from vendors on the oil storage room halon system. Cathodic protection system for the gate shafts has been commissioned. Page 4 of 5 BPMC Minutes 3/30/2010 9B. Next Meeting Date The next meeting will be at the call of the Chair. 10. ADJOURNMENT The meeting adjourned at 11:08 a.m. BY: S200 ATTEST: Page 5 of 5 BPMC Minutes 3/30/2010 Ww = “AIDEN. fe Ao Hy Alaska Industrial Development whe Export Authority BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING AGENDA Tuesday, March 30, 2010 — 10:00 a.m. (via electronic media at the Alaska Energy Authority’s Board Room — 813 West Northern Lights Boulevard, Anchorage, AK) 1. CALL TO ORDER Evans 2 ROLL CALL (for Committee members) 3 PUBLIC ROLL CALL (for all others present) 4. PUBLIC COMMENT 5: AGENDA COMMENTS / MOTION FOR APPROVAL 6. APPROVAL OF MEETING MINUTES December 30, 2009 and February 4, 2010 7. NEW BUSINESS A. Bank of America Underwriter (Motion/Action Item) Cunningham B. BPMC Proposed FY11 Budget (Motion/Action Item) Cunningham C. Bradley Improvement Project (Motion/Action Item) Carey 8. OLD BUSINESS A. FAA License for Cameras (Motion/Action Item) Gibson B. FERC Land Use Fees Gibson Cc Status Report on Soldotna SVC Evans D Possible Debt Refinancing Evans 9. COMMITTEE REPORTS / COMMENTS A. Operators Report Day B. Next Meeting Date Evans 10. ADJOURNMENT 813 West Northern Lights Boulevard * Anchorage, Alaska 99503-2495 www.aidea.org * 907/771-3000 * FAX 907/771-3044 ® Toll Free (Alaska Only) 888/300-8534 * www.akenergyauthority.org