Loading...
HomeMy WebLinkAboutBPMC Meetings Febuary 24, 1994 1BRADLEY PMC VOTING DATE: Agenda Item No. uA HE Wize begat Syperars Koll Cal] so [se | on iy WO | ue eel fal | CITY OF SEWARD 01% (7T_] [EEE Ez MATANUSKA ELEC Assoc ~” 14% [Z]_] Fi Zo CHUGACH ELEC Assoc 30% [Z]]_] ToC Se HOMER ELEC ASSOC i I~ FEL Mee GOLDENVALELECASSoc 1% (ZI | |O$-EC ES) MUNI LIGHT & POWER 26% 7] ES ZY L | [7] ALASKA ENERGY AUTHORITY” Fl ES Lea A=4+ OVER 51% B = AEA CONCUR With A 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. Evaluation and approval of optional project work and compensation for such work. 12) Application of insurance claims proceeds not governed by bond resolution. 13) Approval of procedures and any individual utility agreements relating to electric power reserves for project. 14) 15) Approval of consultants. VOTING METHOD C: Unanimous vote by all (including AEA) YOTING METHOD D: Majority vote (including AEA) Election of Officers Bradley Lake PROJECT MANAGEMENT COMMITTEE MEETING _2f2¢ fd Aidea. board Kaos (Location) PLEASE SIGN IN No. NAME REPRESENTING 1 |S4 rece ak LLL LA. DEL? 2 | Leas aft a G- CA en 5 a7 - 3 | Dar Fare HE 4 4 a | Beth Abeh 5 6 Phewwe He | fuus | 6 | KZ | Le P ny Ann. ce 92Q2\IT9884 Bradley Lake Projecc Management Committee Meeting Minutes - February 24, 1994 Page 7 of 7 12. 13. Affirmation of Budget Subcommittee’s Decision Regarding FY ‘94 Revised Budget MOTION: Mr. Ritchey moved that the PMC affirm the Budget Subcommittee’s decision that the FY ‘94 budget be main- tained at the same level as the original budget adopted by AEA and that approximately $620,000 from that budget be reassigned to the Homer O&M contract. Seconded by Mr. Stahr. Mr. Saxton asked that the motion be amended to approve the transfer of $620,000 to the Homer O&M budget, but not that the Committee affirm the FY ‘94 budget, because the FY '94 budget had not been adopted by the Committee. Mr. Ritchey concurred and amended his original motion with the consent of the second. A roll call vote was taken, and the amended motion and the motion passed unanimously. Technical Standards on Preventative Maintenance MOTION: Mr. Ritchey moved that the PMC request the Operations and Dispatch Subcommittee to recommend tech- nical standards for preventative maintenance on the Bradley Lake Project. Seconded by Mr. Kelly. After hearing discussion, the question was called, and a roll call vote was taken. The motion passed unanimously. COMMITTEE COMMENTS Next Meeting Date - There was a consensus of the Committee that the next PMC meeting will be held on Thursday, March 31, 1994, at 10:00 a.m., the location to be determined at a later time and the Committee members duly advised. ADJOURNMENT There being no further business of the Committee, the meeting was adjourned. BY: David L. Hig ATTEST: Ue Co Dennis V. McCrohan, Secretary Bradley Lake Proje Management Committee Meeting Minutes - February 24, 1994 Page 6 of 7 Lids utilities should discuss whether they want to have a representative work with him or have a third party review the proposal and come to an independent decision. Mr. Highers reminded the Committee that they had discussed this matter previously and had concluded it was not in their best interest to proceed with it. Since that time, Nuveen had reworked their proposal and had come in at about twice the original amount, and the PMC had looked to the Municipal Attorneys for their position on this issue. If the PMC is in favor of reconsidering this proposal, he suggested that they employ an external group to act as financial advisor or assign an internal group to assist Mr. Saxton in reviewing Nuveen’s current activities in relation to its most recent proposal. In response to Mr. Yerkes’ question, Mr. Highers confirmed that the purpose of the bond refinancing was to save money, and the savings have been quantified. Mr. Saxton stated that Nuveen had suggested their proposal, which is based on a variable interest rate, would save between $200,000 and $300,000 per year. Mr. Saxton explained that the PMC’s first question was legal objections. He said the original Nuveen proposal had been formulated on cut- ting edge legal theory, and Municipal Attorneys had not been comfortable with it. Hence, the PMC rejected Nuveen’s original proposal. With regard to the new Nuveen proposal, upon initial review, Municipal Attorneys have provided no legal reason not to proceed; however, further analysis should be undertaken with regard to the level of savings, other risks associated with the proposal, etc., so that a prudent business decision can be reached. Mr. Stahr stated that he was in favor of following the advice of AEA’s financial advisors. Mr. Highers directed that a subcommittee composed of Joe Griffith, Mary Anne Pease, and Bob Hanson be formed for the purpose of working with Mr. Saxton in reviewing Nuveen’s proposal as well as the work of PFA and reporting its findings to the PMC. Mary Anne Pease was appointed as Chair of the subcommit- tee. Further discussion was heard. BUSINESS NEW Approval of Legal Expenses and Other Payments MOTION: Mr. Ritchey moved to approve payment of $15,320.32 for Committee legal expenses for the month of January 1994. Seconded by Mr. Kelly. A roll call vote was taken, and the motion passed unanimously. Bradley Lake Projecc Management Committee Meeting Minutes - February 24, 1994 Page 5 of 7 Mr. Yerkes added that the Homer’s concerns are minor, but Mr. Baldwin had been not been available to participate in discussions. Mr. Saxton said he would like to get the issues resolved as quickly as possible. C. Transition Duties - Mr. McCrohan reported that the Com- mittee had not reached resolution regarding administrative duties relative to FERC licensing. He said AEA was responsible for those duties through FY ‘94 and has pro- posed in their FY ‘95 budget that AEA continue to perform those duties through FY ‘95. The matter will come before the Committee for consideration. Mr. McCrohan stated that the Authority is also prepared to continue to perform the duties of water management and hydrology studies; however, due to a provision in the HEA O&M Agreement, Homer intends to pick up those duties during the last couple of months of 1994. This outstand- ing issue also requires resolution by the PMC. Referencing Mr. Ritchey’s comments earlier regarding con- tracting secretarial services, Mr. McCrohan stated that this responsibility will be deleted from AEA’s FY '95 budget unless the Committee directs AEA to continue to be responsible for those services, but the intent is to relinquish this responsibility to Homer. Mr. McCrohan reported that funds had been set aside to continue all of the budget coordination performed by AEA in the past. However, the PMC needs to decide if the Budget Subcommittee will perform that entire function or whether AEA will continue to provide support in this area. Mr. McCrohan stated that the 920 account for travel reimbursement for utility representatives to attend meetings is still under the AEA account, and the PMC should decide if they wish to retain or delete it. D. Bond Refunding - Mr. Saxton reported that there had been an exchange of letters between the Authority and Nuveen in which Mr. Jim Seagraves of Nuveen had proposed a somewhat complicated refunding on the Bradley bonds. AEA’s outside financial advisors had reviewed the proposal, and they had recommended that the PMC not proceed with the proposed bond refunding. Therefore, it is AEA’s recommendation that PMC not proceed with this transaction. Mr. Saxton said he had been requested at the RUG meetings to discuss the proposal with Nuveen and the Anchorage lawyers, which he has done, and Mr. Doug Rosenberg of Preston, Thorgrimson, found no legal problems with proceeding with the transaction. Mr. Saxton said the Bradley Lake Proje Management Committee Meeting Minutes - February 24, 1994 Page 4 of 7 10. OLD BUSINESS A. Spinning Reserves Update - Mr. Lovas reported that the Reliability Criteria Committee (RCC) had finalized its status reports, and they have been submitted to the ASCC for consideration at their March 6th meeting. Mr. Lovas summarized the recommendations of the RCC as follows: # Continue to investigate various aspects of operating reserves, such as the policy, quality, distribution of system response criteria; and study system generation and configuration conditions to quantify the spin requirement. @ Redefine the RCC’s tasks as to specific aspects of the criteria rather than a generalized assignment. @ Generally serve as coordinator on information flows on the interconnected operations studies, such as storage devices and reliability enhancements. # Undertake the review of existing planning reliability criteria to ensure that all participants are aware of the material. # Undertake economic evaluations of existing and proposed criteria, including economic impacts of alternative planning criteria. # Maintain the railbelt G&T databases. @ Establish time schedules for rotation of the Chair- manship. @ Administration of the tasks assigned to University of Alaska, Fairbanks. The RCC will also submit a copy of the draft Operating Reserve Criteria to the ASCC as a status report. Mr. Lovas reported that the RCC had also discussed finalization of the UAF Engineering Department proposal to develop an electromagnetic transient program database and model for studying particular interconnection problems. Master Operating Agreement Update - Mr. Saxton reported that the Committee had discussed both the Master Operating Agreement and the HEA O&M Agreement and had approved the HEA O&M Agreement. Mr. Saxton reported that he was aware that internal discussions are ongoing at HEA regarding outstanding issues. Mr. Saxton said he is awaiting word from Mr. Baldwin that Homer is ready to proceed. Bradley Lake Proje Management Committee Meeting Minutes - February 24, 1994 Page 3 of 7 April 2, 1994. Mr. Ritchey recommended that the PMC schedule a meeting prior to that date to address the FY ‘95 budget. Recommendations: (1) The Budget Subcommittee decided that the FY ‘94 budget should be maintained at the same level as the original budget adopted by AEA, with approximately $620,000 from that budget to be reassigned to the Homer O&M contract. Mr. Ritchey requested that the PMC affirm the Budget Subcommittee’s decision. Mr. Ritchey added that the FY ‘94 budget will be higher than the FY ‘95 budget due to start-up costs. (2) The Budget Subcommittee recommended that the PMC request the Operation and Dispatch Subcommittee to review the techni- cal standards for preventative maintenance. Mr. Ritchey said that Four Dam Pool’s standards are being used as a template at this time, but preventative maintenance impacts the budget, and that template should be reviewed and approved or revised as necessary to reflect the technical standards for the Bradley Lake Project. Mr. Ritchey reported that the Subcommittee had briefly dis- cussed whether payment should be made by PMC to contractors attending meetings as participants. Mr. Yerkes clarified that contractors who are board or committee members would expect to attend those meetings without reimbursement. However, when contractors who are not board or committee members are required to attend other meetings for the purpose of defending an issue, it is felt that would be a project cost under the contract and subject to reimbursement. Discussion was heard. 7. OPERATION AND DISPATCH SUBCOMMITTEE REPORT There was no Operation and Dispatch Subcommittee report. 8. INSURANCE SUBCOMMITTEE REPORT Mr. McCrohan reported that the Insurance Subcommittee met Feb- ruary 10, 1994, and notes from that meeting had been provided to the Committee. Mr. McCrohan stated that both Homer and AEA were in the process of investigating the concerns brought up in the course of the February meeting, and Mr. McCrohan anti- cipated that all outstanding issues regarding the insurance would be resolved by the end of March or early April. The next meeting of the Insurance Subcommittee is scheduled for the second week in March. 9. REVIEW OF PROJECT STATUS Mr. McCrohan reported that Mr. Eberle was not present, but there was no change in the project status. Bradley Lake Proje Management Committee Meeting Minutes - February 24, 1994 Page 2 of 7 PUBLIC COMMENT There was no public comment. AGENDA COMMENTS Bond Refunding (Saxton) was added as Item D. under No. 10, Old Business. Affirmation of Budget Subcommittee’s Decision Regarding FY ‘94 Revised Budget (Ritchey) was added as Item B. under No. 11, New Business. Technical Standards on Preventa- tive Maintenance (Ritchey) was added as Item C. under No. 11, New Business. There were no other comments regarding the agenda. The agenda was approved as modified. APPROVAL OF MEETING MINUTES - JANUARY 25, 1994 MOTION: Mr. Ritchey moved to approve the minutes of the January 25, 1994 minutes. Seconded by Mr. McCrohan. The following corrections were noted: On page 4, the first sentence of the second para- graph that reads: "In response to Mr. Wolf’s comment regarding... for the Soldotna SBC, Mr. Story advised that the Budget Subcommittee is considering...." was revised to read: "In response to Mr. Wolf’s comment regarding... for the Soldotna SVC, Mr. Story advised that HEA is considering...." The spelling of Four Dam Pool was corrected on pages 10 and 11. There being no further corrections, the minutes were approved as revised. BUDGET SUBCOMMITTEE REPORT Mr. Ritchey reported that the Budget Subcommittee had met the previous day and briefly discussed contracting a secretarial service for the purpose of recording and preparing meeting minutes for FY '95. A proposal will be presented at the next meeting of the Board. The Subcommittee discussed primarily the HEA side of the FY ‘95 budget at length; the AIDEA side will be addressed at the next Subcommittee meeting. The FY ‘95 budget must be adopted by the Bradley Lake Project Management Committee (PMC) by BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES Alaska Industrial Development and Export Authority BSPMc Board Room a Thursday, February 24, 1994 Rens. 10:00 a.m. Ylaa lau. CALL TO ORDER Chairman Highers called the meeting of the Bradley Lake Hydro- electric Project Management Committee to order at 10:10 a.m. in the Board Room of the Alaska Industrial Development and Export Authority in Anchorage, Alaska, to conduct the business of the Committee per the agenda and public notice. Six Committee members were present, and a quorum was established. ROLL CALL Alaska Energy Authority Dennis McCrohan, Designated Representative Chugach Electric Association David L. Highers, Designated Representative and Chairman Golden Valley Electric Association Mike Kelly, Designated Representative City of Seward Dave Calvert, Designated Representative Matanuska Electric Association Ken Ritchey, Designated Representative Municipal Light & Power Tom Stahr, Designated Representative Not Present Homer Electric Association Norm Story, Designated Representative Others Present: Stan Sieczkowski, AEA/AIDEA Larry Wolf, AEA/AIDEA Sharron Sigafoos, AIDEA Eva Carpenter, AIDEA John S. Cooley, Chugach Electric Association Tom Lovas, Chugach Electric Association David Burlingame, Chugach Electric Association Joe Griffith, Chugach Electric Association Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerritt Tim McConnell, Anchorage Municipal Light & Power Bob Price, Anchorage Municipal Light & Power Mary Ann Pease, Anchorage Municipal Light & Power Dave Fair, Homer Electric Association Myles Yerkes, Homer Electric Association Bob Hufman, Utilities Consulting Services Bradley Evans, Golden Valley Electric Association Vince Mottola, Fairbanks Municipal Utilities System