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HomeMy WebLinkAbout06-14-2001 BM Minutesaert seyNMate ALASKA ENERGY AUTHORITY Board Meeting June 14,2001 a MinotvesOMeee tTvo Pa ee ae * VES Sees. Mete ways agp OSiymoetaSeate A OD bed ALASKA INDUSTRIAL DEVELOPMENT ta)AND EXPORT AUTHORITY =x mE ENERGY AUTHORITY 813 WEST NORTHERN LIGHTS BLVD.©ANCHORAGE,ALASKA 99503 ©907/269-3000 ©FAX 907/269-3044 TOLL FREE (ALASKA ONLY)888 /300-8534 .AGENDA ALASKA ENERGY AUTHORITY Board of Directors June 14,2001 1.CALL TO ORDER 2.BOARD OF DIRECTORS ROLL CALL 3.PUBLIC ROLL CALL 4.PUBLIC COMMENTS 5.PRIOR MINUTES -April 12,2004 6.OLD BUSINESS 7.NEW BUSINESS A.Appointment of Officers,Resolution #2001-04 8.DIRECTOR COMMENTS A.Director's Status Report of AEA Programs and Projects B.Next Meeting Date 9.BOARD COMMENTS 10.ADJOURNMENT H:\ALL\bfuglestad\BOARD\Agenda AEA.DOC ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY {=ALASKAqm=ENERGY AUTHORITY 813 WEST NORTHERN LIGHTS BLVD.©ANCHORAGE,ALASKA 99503 ©907/269-3000 ©FAX 907 /269-3044 TOLL FREE (ALASKA ONLY)888 /300-8534 ALASKA ENERGY AUTHORITY BOARD OF DIRECTORS June 14,2001 -2:08 p.m. Anchorage,Alaska 1.CALL TO ORDER Chairman Hughes called the meeting of the Alaska Energy Authority to order on June 14,2001,at 2:08 p.m.A quorum was established. 2.BOARD OF DIRECTORS ROLL CALL Directors present in Anchorage:Mr.Wilson Hughes (Chairman/Public Member),Commissioner Joe Perkins (Department of Transportation and Public Facilities),and Deputy Commissioner Larry Persily (Designee for Department of Revenue Commissioner). 3.PUBLIC ROLL CALL Staff present in Anchorage:Robert Poe,Jr.(Executive Director),David E.Germer (Deputy Director-Business Development),and Brenda J.Fuglestad (Administrative Assistant). Others attending in Anchorage:Brian Bjorkquist (Department of Law). 4.PUBLIC COMMENTS There was no public comment. 5.PRIOR MINUTES -Apri!12,2001 The April 12,2001,minutes were approved as presented. 6.OLD BUSINESS There was no old business. 7.NEW BUSINESS 7A.Resolution No.2001-04,Resolution of the Alaska Energy Authority Relating to the Appointment of Various Officers of the Authority;and Related Matters AEA Board Meeting June 14,2001 Meeting Minutes Page 2 Mr.Poe stated that there have been changes in Authority staff that required this resolution to be brought before the Board to recognize the changes that have been made. Mr.Poe briefly explained Resolution No.2001-04,stating that it appoints Michael Harper as Deputy Director-Rural Energy and Assistant Secretary and changes David Germer's title from Deputy Director-Business Development &Rural Energy to Deputy Director-Business Development. The appointment of Michael!Harper to Deputy Director-Rural Energy will allow for David Germer to move from direct responsibility for the Rural Energy Group and for Business Development to move back to Business Development. Staff recommended approval of Resolution No.2001-04. MOTION:Deputy Commissioner Persily moved to approve Resolution No.2001-04. Seconded by Commissioner Perkins.There being no discussion,the question was called. A roll call vote was taken and the motion passed unanimously. 9.BOARD COMMENTS There were no Board member comments. 10.ADJOURNMENT There being no objection and no further business of the Board,the meeting was adjourned at 2:10 iRobertPoe,Jr.Secretary qm =ENERGY AUTHORITY rut ALASKA INDUSTRIAL DEVELOPMENT a,*AND EXPORT AUTHORITY /=ALASKA 813 WEST NORTHERN LIGHTS BLVD.¢©ANCHORAGE,ALASKA 99503 ©907/269-3000 ©FAX 907/269-3044 TOLL FREE (ALASKA ONLY)888 /300-8534 ALASKA ENERGY AUTHORITY BOARD OF DIRECTORS April 12,2001 -1:20 p.m. Anchorage and Juneau,Alaska 1.CALL TO ORDER Chairman Hughes called the meeting of the Alaska Energy Authority to order on April 12,2001,at 1:20 p.m.A quorum was established. 2.BOARD OF DIRECTORS ROLL CALL Directors present in Anchorage:Mr.Wilson Hughes (Chairman/Public Member),Commissioner Deborah Sedwick (Department of Community and Economic Development),and Deputy Commissioner Larry Persily (Designee for Department of Revenue Commissioner). Directors present in Juneau:Commissioner Joe Perkins (Department of Transportation and Public Facilities),and Mr.Robert Loescher (Public Member). 3.PUBLIC ROLL CALL Staff present in Anchorage:Robert Poe,Jr.(Executive Director),Valorie F.Walker (Deputy Director-Finance),James A.McMillan (Deputy Director-Credit),David E.Germer (Deputy Director-Business Development &Rural Energy),and Brenda J.Fuglestad (Administrative Assistant). Others attending in Anchorage:Brian Bjorkquist (Department of Law). 4.PUBLIC COMMENTS There was no public comment. 5.PRIOR MINUTES -February 8,2001 The February 8,2001,minutes were approved as presented. 6.OLD BUSINESS There was no old business. AEA Board Meeting April 12,2001 Meeting Minutes Page 2 7.NEW BUSINESS 7A.Resolution No.2001-03,Resolution of the Alaska Energy Authority Authorizing Borrowing from the Alaska Industrial Development and Export Authority for the Payment of Certain Expenses,Repealing Resolution 1995-05,and Providing for Related Matters Mr.Bjorkquist reviewed Resolution No.2001-03 stating it authorizes AEA to borrow money from AIDEA.The loan proceeds may be used to pay project related expenses prior to the receipt of funds by AEA to pay for the expenditures.The resolution also authorizes AEA to make arrangements for the payment of overhead expenses and administrative support and services provided to AEA by AIDEA. He said 1999 legislation transferred the rural energy programs to AEA.AEA participates in the development and construction of power project and bulk fuel facilities that AEA does not own, operate,and maintain.The resolution authorizes AEA to borrow up to $2.5 million from AIDEA for its expenditures.The authorization continues to relate to the AEA owned,operated and maintained facilities and expands the authorization to include the power project and bulk fuel facilities that AEA helps develop and construct in conjunction with the Denali Commission and other funding sources.Resolution No.2001-03 also repeals Resolution No.1995-05. Staff recommended approval of Resolution No.2001-03. MOTION:Commissioner Sedwick moved to approve Resolution No.2001-03.Seconded by Commissioner Perkins.There being no discussion,the question was called.A roll call vote was taken and the motion passed unanimously. 8.DIRECTOR COMMENTS Executive Session Mr.Brian Bjorkquist stated that there are negotiations,strategy,and financial matters to discuss related to the Larsen Bay Hydroelectric Project.Under the Open Meetings Act a body,such as the AEA Board,can go into executive session to discuss negotiations,strategy,and financial issues.The appropriate procedure for doing that is to have a Board member make a motion to go into executive session for that purpose and to vote on that motion. MOTION:Commissioner Sedwick moved to go into executive session to discuss negotiations,strategy,and financial matters related to the Larsen Bay Hydroelectric Project.Seconded by Commissioner Perkins.There being no discussion,the question was Called.A roll call vote was taken and the motion passed unanimously. EXECUTIVE SESSION --1:23 p.m. The Board reconvened its regular meeting at 2:03 p.m. Roll call was taken and a quorum was established.Chairman Hughes advised that the Board had not taken any formal action on the matters discussed while in Executive Session. AEA Board Meeting April 12,2001 Meeting Minutes Page 3 Rural Energy Programs Mr.Germer updated the Board on the rural energy programs stating that the construction projects consist of bulk fuel consolidation projects,powerhouse upgrades,and electrical projects. There are currently eight design studies in progress with an additional 20 being initiated this summer.After the design work is complete AEA secures the necessary project funding, predominately through Denali Commission funding,however,there are other sources also used.After the funding is secured and the grant agreements are developed with the community,construction is initiated.AEA is scheduled to wrap-up seven bulk fuel projects and two powerhouse projects this summer.Three bulk fuel projects and three power projects should be completed by the end of the 2001 construction season.Staff will also be initiating six bulk fuel projects and two powerhouse projects that should be completed at the end of the 2002 construction season.The workload that is contemplated for this summer is a 50%increase from the prior year. Ideally,once a new power project or tank farm is constructed,the Denali Commission not only wants to be properly maintained and operated throughout its life,but also wants assurances that the owner has sufficient funding resources,without the of use of federal or state grant money,to replace the project at the end of its useful life.The label that the Denali Commission has given to this goal is "sustainability.”In an effort to reach this sustainability goal,the Denali Commission has set up a set of criteria that each facility owner would be required to meet.All prospective facility owners would have to meet these criteria before construction would actually be able to take place.Furthermore,AEA would have the responsibility for making the determinations for monitoring compliance with the criteria and then monitor the compliance with the criteria throughout the useful life of the asset.If an owner fell out of compliance with any of the sustainability criteria,actions would be taken,including possible repossession of the facility. Staff agrees with the Denali Commission's basic intent and believes that sustainability is a logical goal,however,staff differed with the Denali Commission in certain areas of the criteria. Staff believes that an incremental approach to reach sustainability targets would be more realistic compared to the approach that they require full compliance and a detail business model before the facility could be built. . AEA does not have the authority,staff,nor the resources to make the determinations and to enforce these particular sustainability criteria,as well as the necessary penalties associated with noncompliance. Commissioner Perkins departed the meeting at this time. As a result,AEA and the Denali Commission have rewritten the criteria in a more practical manner.AEA's role would be limited to the preparation of a business plan in advance of construction.The intent of the plan would be to bring the owner into compliance over a three year period.The Denali Commission would be responsible for enforcing compliance with the sustainability criteria once the facility was built.The Denali Commission also has agreed to provide funding to the extent that it is available,for training and education to help new owners comply with the criteria. AEA Board Meeting April 12,2001 Meeting Minutes Page 4 Mr.Poe said that the Denali Commission's point of view is that any utility that receives a grant from them should have a depreciation sinking fund to replace the whole asset at the end of its economic life. Mr.Loescher said he appreciates the work that has been done on the policy by staff and agrees with the direction in which they are moving.He said AEA should not be responsible for education,training,and management funding;however AEA could help secure and manage the funding.He believes that the policy should have a fiscal note attached stating that there should be grant funds to implement it. 9.BOARD COMMENTS Mr.Loescher said he is unhappy with the lack of assistance and understanding from management and the Board regarding the submarine cable issue.He said that he would take this issue up with the Governor.He believes that public interest in the environment and the availability of this technology in Alaska needs to have government backing other than the parties who have a direct interest. Chairman Hughes stated the Board appreciates Mr.Loescher's position,however,every day a new technology arrives,the private investor can not expect a state agency to do their research for them.There is a concern with setting a precedent whereby it would become an AIDEA or AEA financial responsibility to continually review every changing technology that in turn enhances a private investor.This is a private cable issue that is being explored with the possibility that AP&T will put it in the water between two locations. Discussions ensued with regard to new technologies and who should be responsible for conducting the research. 10.ADJOURNMENT There being no objection and no further business of the Board,the meeting was adjourned at 2:27 p.m. Robert Poe,Jr.,Secretary ALASKA ENERGY AUTHORITY RESOLUTION NO.2001-04 RESOLUTION OF THE ALASKA ENERGY AUTHORITY RELATING TO THE APPOINTMENT OF VARIOUS OFFICERS OF THE AUTHORITY; AND RELATED MATTERS WHEREAS,the By-laws of the Alaska Energy Authority (the "Authority”)provide that the Executive Director of the Authority is the Secretary-Treasurer of the Authority and set out the duties and responsibilities of the Secretary and the Treasurer; WHEREAS,the By-Laws of the Authority provide that the members of the Authority may assign,or authorize the Executive Director to delegate,all or part of the duties of the Executive Director,Secretary or Treasurer to some other person or persons,and give to such person or persons an appropriate title,including that of Assistant Secretary,and that officers of the Authority shall perform such other duties and functions as may from time to time be required by the Authority or the By-Laws or Regulations of the Authority; WHEREAS,the Rural Energy programs and operations of the Authority, including those programs and operations funded through the Denali Commission, require significant administrative support and services to provide the important public benefits those programs and operations offer to Alaska; WHEREAS,the Business Development programs and operations of the Authority also require significant administrative support and services to provide the important public benefits to Alaska; WHEREAS,it is in the best interests of the Authority that a Deputy Director be appointed for Rural Energy,and that a Deputy Director be appointed for Business Development; WHEREAS,it is in the best interests of the Authority that Michael C.Harper be appointed as Deputy Director-Rural Energy and Assistant Secretary of the Authority; WHEREAS,it is in the best interests of the Authority that David E.Germer continue to be a Deputy Director of the Authority,that his appointment be modified to Deputy Director-Business Development and Assistant Secretary of the Authority,and that the appointment then be confirmed;and WHEREAS,it is therefore in the public interest to now appoint,or confirm the appointment of,certain officers of the Authority. NOW,THEREFORE,BE IT RESOLVED BY THE ALASKA ENERGY AUTHORITY AS FOLLOWS: Section 1.Michael C.Harper is hereby appointed as Deputy Director-Rural Energy and Assistant Secretary of the Authority.| Section 2.The previous appointment of David E.Germer as Deputy Director- Business Development &Rural Energy and Assistant Secretary of the Authority is hereby modified to and confirmed as the appointment of David E.Germer as Deputy Director-Business Development and Assistant Secretary of the Authority. 'Section 3.This Resolution shall become effective immediately upon its passage and approval. DATED at Anchorage,Alaska,this 14"day of June 2001. Chairman ATTEST [SEAL] Secretary AEA/Appointment of Officers Resolution No.2001-04 H:\ALL\bfuglestad\BOARD\RESOLUTIMEA officers-Germer-Harper.doc Page 2