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HomeMy WebLinkAboutBradley Lake PMC Regular Meeting Draft Minutes 07-17-2012BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING (via electronic media at the Alaska Energy Authority’s Aspen Room) Anchorage, Alaska July 17, 2012 DRAFT MINUTES 1. CALL TO ORDER Chair Brad Evans called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 9:00 on Tuesday, July 17, 2012, from the AEA Aspen Conference Room, Anchorage, Alaska to conduct the business of the Committee per agenda and public notice. 2. ROLL CALL Roll was called by May Clark. The following members were present: John Foutz City of Seward Joe Griffith Matanuska Electric Association Brad Evans Chugach Electric Association Harvey Ambrose Homer Electric Association Henri Dale Golden Valley Electric ples, Richard Miller Anchorage Municipal Light & Power juste Bryan Carey Alaska Energy Authority | = Jc i 3. PUBLIC ROLL CALL pe © prod > oe ; oe May Clark AEA | ; Kim Lomen AEA e Brian Hickey Chugaeh CT * gr alte Burke Wick CEA yw Lo Bob Day uma ter 4 @ rest Rick Miller ML&P ors ! Jeff Warner ML&P 9 wd Jim Strandberg AEA or Lee Thibert CEA ie Sara Fisher-Goad AEA Sy La Larry Jorgensen HEA (teleconference) Page 1 of 4 BPMC Draft Minutes 7/17/2012 4. PUBLIC COMMENT There were no public comments. 5. AGENDA COMMENTS/MOTION FOR APPROVAL The agenda was approved as amended. 6. Approval of Meeting Minutes — March 16, 2012 The March 16, 2012 meeting minutes were approved as amended. 7. New Business 7A. Review of the O&M Services Agreement Mr. Griffith said that there are a series of new issues in the Railbelt, such as determining how to support the Susitna-Watana project and the Unconstrained Bradley Lake project. One factor is the O&M services agreement and who runs Bradley Lake. Mr. Griffith suggested that Mr. Gibson review the agreements. The O&M Service Agreements, which were signed in 1980, may need changes so the committee can fully understand the conditions the project is currently operating under when changes occur at end of 2014. There have been many changes in 20 years so the language of the agreement must be reviewed. A task force must consider the contractual good faith,dealing concept; the prudent utility practice; and the obligations and duties of all the agencies involved. (tr bai r Chair Evans said that if there were no more comments he moved to close the discussion and that he would create a task force by Chair edict. He would also consult the BMPC attorney regarding the creation of an ad hoc committee or write a resolution to review the original agreements. 7B. Update on the Battle Creek Diversion Project. Mr. Carey said there had been a workshop with agencies on the environment flows. In early May, Alaska Department of Fish and Game and U.S. Fish and Wildlife reviewed cross sectional transacts of Battle Creek at a low flow rate. Fish and Game has performed two in-stream flow reviews and came to a similar conclusion. Chairman Evans asked if the different agencies reviewing the resources in terms of water flow and salmon spawning would have to consolidate their finds. Mr. Carey said that once the draft conditions are completed by Fish and Game and federal agencies, there will be an opportunity to negotiate Page 2 of 4 BPMC Draft Minutes 7/17/2012 conditions for the final license application. After the negotiations are complete, the final license application will be submitted. Mr. Carey said that once the license amendment is received in summer of 2013, the project can go to bid and a site visit will be conducted for the bidders. The successful contractor will have the winter months to gather their equipment and have it mobilized for construction in the 2014 calendar year. However, there will be additional funding needed to cover the increased cost of helicopter drilling. AEA is waiting on additional information from the environmental licensing consultant, but the amount needed will be between $250,000 and $500,000. Originally the project started out with $6 M and $3 M was used to fund the Battle Creek design and licensing. Both the RE fund and BPMC contributed $500,000 bringing the total budget to $4 M, of which roughly $3.4 M has been obligated. There is currently $600,000 of unobligated funding. The cost of additional engineering and licensing to bid is greater than the unobligated amount. Of the $3.4 M between $1.5 M and $2 M has been used for helicopter drilling. The costs for geotechnical work and engineering design amount to about 80% of the original budget. Ms. Fisher-Goad said relocation of existing funds may be the quickest way to obtain the funds needed for 2012. But Mr. Gibson must be consulted to find out the current status of the grants and determine the most logical solution. 7C. Election of Officers MOTION: Mr. Griffith moved for election of Committee Officers with current slate. Mr. Posey seconded the motion. A roll call vote was taken: City of Seward: Yes 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 passed unanimously. 8. Committee Reports/Comments 8A. Operator’s Report —Larry Jorgensen Page 3 of 4 BPMC Draft Minutes 7/17/2012 Mr. Jorgenson said the Lake level as of July 13 was 1,126.3 feet. Mr. Posey asked if annual gate testing was being done to determine if there was any erosion of pipe in the project. Mr. Jorgenson said the lower region is re-enforced steel to guard against erosion. Trash collection is done in the penstock at the end of the year to determine if any erosion has occurred and there has not been any substantial trash in the past. There is a large rock trap by the turbines that any eroding concrete would have to jump and that is not likely to happen. There were no other meeting comments. Meeting summary/assignments: e Creation of a task force to review past O&M Agreements. Update language in the agreements and determine the duties and obligations of all participating agencies. e Creation of a special purpose committee work with AEA to cover upcoming funding shortfall. 8B. Next Meeting Date Based on issues raised in the July 17, 2012 meeting the next meeting should be help by mid- September. 9. Adjournment The meeting adjourned at 10:00 a.m. BY: Brad Evans, Chair ATTEST: Alaska Energy Authority, Secretary Page 4 of 4 BPMC Draft Minutes 7/17/2012