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HomeMy WebLinkAboutBPMC Meeting- April 02 1996 1BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES Commission Room Anchorage Municipal Light & Power 1200 East 1st Avenue Anchorage, Alaska Tuesday, April 2, 1996 10:00 a.m. 1. CALL TO ORDER Chairman Tom Stahr called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:00 a.m. in the Commission Room of Anchorage Municipal Light & Power, 1200 East 1st Avenue, 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: Tom Stahr, Chairman Anchorage Municipal Light & Power Dave Calvert City of Seward Eugene Bjornstad, Vice Chairman Chugach Electric Association Wayne Carmony, Treasurer Matanuska Electric Association Don Stead Homer Electric Association Bradley Evans Golden Valley Electric Association Dan Beardsley Alaska Energy Authority Others Present: Tim McConnell, Municipal Light & Power Mary Ann Pease, Municipal Light & Power Stan Sieczkowski, Alaska Energy Authority Shauna Dean, Alaska Energy Authority Lee Thibert, Chugach Electric Association John S. Cooley, Chugach Electric Association Dora Gropp, Chugach Electric Association Mike Kelly, Golden Valley Electric Association Steven Haagenson, Golden Valley Electric Association Jim Hall, Matanuska Electric Association Bob Hufman, AEG&T Bradley Lake Project Management Committee Meeting Minutes Tuesday, April 2, 1996 Page 2 of 5 Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerritt Del LaRue, Dryden & LaRue Al Peabody, Dryden & LaRue 3. PUBLIC COMMENT None. 4. AGENDA COMMENTS Agenda It..n 9.C., Moose Mitigation, was deleted. Under Item 10.A., Approval of Legal Expenses and Other Expenses, it was noted the person giving that report would be Mr. Carmony rather than Mr. Bjornstad. There being no further additions or corrections to the agenda, they were adopted by unanimous consent. 5: APPROVAL OF MEETING MINUTES - FEBRUARY 13, 1996 MOTION: Mr. Bjornstad moved for approval of the minutes. Seconded by Mr. Calvert. On page 4, second paragraph under Item 9.B., Agreement Briefing, Mr. Saxton asked that the first line be eae from "Mr. Saxton said the Power Sales Contract consisted of three documents...." a "Mr. Saxton said the initial Bradley Lake agreements consisted of three documents.... There being no further corrections, a voice vote was taken, and the minutes were approved as amended. 6. BUDGET SUBCOMMITTEE REPORT Ms. Pease reported the Budget Subcommittee had met March 19, 1996, to discuss the Parisena Stromberg audit. Ms. Pease said Bonnie Godfred and Gary Stromberg were present to provide an overview of the audit. Ms. Godfred said the litigation between the Bradley PMC and the AEA regarding administrative charges had resulted in an uncertainty in the independent auditor's report last year. She said that matter had been resolved, and the PMC had received a clean opinion this year. Ms. Godfred briefly addressed the revenue surplus reflected in the Statements of Revenue, Expenses, and Surplus on page 3 and how it related to the Balance Sheet on page 2. Ms. Godfred pointed out a new footnote on page 9 related to contingencies for pending claims as a result of the airplane crash and explained how it related to the second paragraph regarding the results of the internal audit conducted in 1995 by the Municipality of Anchorage. She said the $73,000 still in dispute between Bradley and Chugach had been expensed, and no adjustment was made for the uncertainty. MOTION: Mr. Beardsley moved to accept the audit as presented. Seconded by Mr. Kelly. There being no discussion, a voice vote was taken, and the motion passed unanimously. Bradley Lake Project Management Committee Meeting Minutes Tuesday, April 2, 1996 Page 3 of 5 7. OPERATION AND DISPATCH SUBCOMMITTEE REPORT A. Construction Funding Sources Mr. Sieczkowski reported the O&D Subcommittee had met March 14, 1996. HEA had reported the maintenance scheduling program was operational following installation of the updates. The water and energy allocation reports were being modified for clarification of the information reported. The permitting process for reopening the Martin River airstrip was 98 percent complete at this time. Mr. Sieczkowski reported the comments had been received from the utilities regarding the governor response and control study approved by the Committee at the last meeting. He said the scope was being finalized, and Mr. Stead, from HEA, had been designated as the Project Engineer f or the study, with support from Moe Aslam, ML&P, and Alice Mullens, CEA. He said the report would be finalized and returned to the O&D Subcommittee for action. Mr. Sieczkowski said that Bradley operations had been normal since the last Committee meeting. He said Mr. Stead would give the maintenance report. Mr. Sieczkowski said the next meeting of the O&D Subcommittee was scheduled for May 16, 1996. Mr. Stead said they were currently preparing for the scheduled outage at the end of the month. B. Construction List - Consideration and Action Referring to the March 28 letter from Mr. McCrohan to Mr. Stahr regarding Bradley construction funds and punchlist, Mr. Beardsley reviewed the outstanding items with the Committee. He said it was AEA's intention to identify the outstanding items as budget items and provide HEA an escrow account so they could complete the punchlist items and construction could be finalized. Mr. Beardsley briefly discussed the three items at the bottom, two of which related to outstanding issues with Brown & Root. Mr. Beardsley also provided an overview of the Analysis of Costs and Contributions. Mr. Sieczkowski responded to questions, and discussion was heard. Ms. Pease recommended that a final audit be conducted on the construction fund to ensure the balances shown on the report were accurate. Chairman Stahr concurred and proposed that the report be submitted to the Budget Subcommittee for review and recommendation regarding the advisability of conducting a final audit. Further discussion was heard regarding individual items, cost control methods, and contract procedures. MOTION: Mr. Kelly moved that the Committee approve the Bradley Lake Hydroelectric Project proposed finai construction list dated 3/27/96 for a total of $2,598,958, which included 18 individual items and $212,000 in contingency funding, and that the Committee authorize the O&D Subcommittee to approve the 18 items, provided the actual cost did not exceed the cost set forth on the final construction list plus the allocated contingency funding for each item. Seconded by Mr. Bjornstad. Bradley Lake Project Management Committee Meeting Minutes Tuesday, April 2, 1996 Page 4 of 5 Mr. Carmony stated his opposition to the motion and the reasons therefore. Discussion was heard. The question was called, and a roll call vote was taken. The motion passed with one objection by Matanuska Electric Association. MOTION: Mr. Kelly moved that the Committee delegate to the Budget Subcommittee the task of reviewing the AEA close-out and making a recommendation to the Committee as to whether or not a final aud*t siicule) be conducted. Seconded by Mr. Bjornstad. There being no Jiscussion, a roll call vote was taken, and the motion passed unanimously. 8. INSURANCE SUBCOMMITTEE Mr. Ocards!2y said he was still awaiting a copy of the certificate of insurance on the aircraft from iii. Stead for HEA. Mr. Stead confirmed that HEA had contacted Gwaltney & Gwaltney, and the insurance certificate would be forwarded. 9. OLD BUSINESS A. Spinning Reserves Update In Mr. Lovas' absence, Mr. Bjornstad read into the record Mr. Lovas' report from the ASCC meeting in Juneau that was held March 8, 1996. ASCC March 8, 1996 Meeting Tom Lovas As discussed at the ASCC meeting on March 8", the Reliability Criteria Committee remains at work on the 70% minimum responsive spin requirement. The committee’s role was clarified at that time, and will expand its work to develop monitoring and verification procedures and requirements. Meanwhile, the Alaska Intertie Operating Committee has recently begun an independent review of the RCC’s proposal. B. Agreements Status Mr. Beardsley reported that a meeting was scheduled for April 4, 1996, at 9:30 a.m. for the final effort to resolve the agreements. He said he was aware ML&P would be submitting comments. He said the objective was to deal with the substantive and wordsmithing issues, and to bring policy issues back to the PMC. He said it was his intention to resolve all issues for submission of a final draft to the PMC at the next Committee meeting. In response to questions, Mr. Beardsley elaborated on specific outstanding issues. C. Moose Mitigation This item was deleted under Item 4., Agenda Comments. 10. NEW BUSINESS Bradley Lake Project Management Committee Meeting Minutes Tuesday, April 2, 1996 Page 5 of 5 A. Approval of Legal Expenses and Other Expenses Mr. Carmony reported that the payment of $2,789.77 approved by the Committee at the last meeting had not been made, and they were taking steps to correct the problem and issue the check. Mr. Carmony reported that bills had been received from Ater, Wynne, Hewitt, Dodson & Skerritt in the amount of $5,052.09 for the months of January and February 1996. Mr. Carmory <2: ! fie was concerned that the activities to which the billings related involved persons other than himself, and he was unable to request authorization of the expenditures because he had no knowledge whether they were valid or not. He suggested that the Committee <siermine a more appropriate method by which to review and approve the legal expenses. There was a consensus that this item would be tabled until the next meeting for further discussion of Mr. Carmony's request. nt COMMITTEE MEMBER COMMENTS Chairman Stahr reported he had received a request for reconsideration from Mr. McCrohan recerdin~ the sir.kin © fund that the Boerd had previously rejected for funding from the budget. Mr. Stahr distributed copies of the letter from wir. McCrohan dated 3/15/96, and discussion was heard. Chair Stahr asked the O&D Committee to review the list of future expenditures and then to turn it over to the Budget Subcommittee for their review and recommendation to the Board. 12. NEXT MEETING DATE The next regular meeting of the Bradley Lake Hydroelectric Project Management Committee ~ scheduled for Tuesday, June 18, 1996, at 10:00 a.m., in the Commission Room of ML&P. 13. / «RNMENT MOTION: Mr. Bjornstad moved to adjourn. Seconded by Mr. Kelly. There being no objection and no further business of the Committee, the meeting was adjourned at 11:09 a.m. BY: a Ss Tom Stahr, Chairman ATTEST: Gem ay A Alaska Energy Authority, Secretary 08/09/96 FRI 10:04 FAX 907 5626994 CEA EXECUTIVE OFFICE goo1 , | Ch ugach ELECTRIC ASSOCIATION, INC. 5601 Minnesota Drive P.O. Box 196300 Anchorage, Alaska 99519-6300 Phone; 907-563-7494 FACSIMILE TRANSMITTAL SHEET [ DATE: August 9, 1996 TO: Shawna COMPANY: AIDRA LOCATION: Anch FAX #: 269-3044 FROM: Dianne Hillemeyer SUBJECT: Quote from BPMC meeting of 8/6 COMMENTS/MESSAGE: l "As discussed at the ASCC meeting of March 8, the Reliability Criteria Committee remains at work on the 70% minimum responsive spin requirement. The committee's role was clarified at that time, and will expand it's work to develop monitoring and verification procedures and requirements. Meanwhile, the Alaska Intertie Operating Committee has recently begun an independent review of the RCC's proposal." TOTAL NUMBER OF PAGES TRANSMITTING: (includes Cover Sheet) IF TRANSMISSION IS INCOMPLETE, PLEASE CALL; (907) 7624709 TIME/DATE OF TRANSMISSION: BY: Dianne CHUGACH FAX NO.: (907) 562-6994 MACHINE TYP; CANON B340 ASCC March 8, 1996 Meeting Tom Lovas As discussed at the ASCC meeting on March 8", the Reliability Criteria Committee remains at work on the 70% minimum responsive spin requirement. The committee’s role was clarified at that time, and will expand its work to develop monitoring and verification procedures and requirements. Meanwhile, the Alaska Intertie Operating Committee has recently begun an independent review of the RCC’s proposal.