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HomeMy WebLinkAboutBPMC Bylaws comments 19935 ors 'ANE: CC:TeesOO)dateGiteALASKAINOUSTRIALDEVELOPIeeNT AND EXPORT AUTHORITY 480 WEST TUDOR *ANCHORAGE,ALASKA 99503-6690 « September 21,1993 Mr.Ron Saxton,Esq. Ater Wynne Hewitt Dodson &Skerritt 225 S.W.Columbia, Portland,Oregon Suite 1800 97201-6618 Subject:Resolution 93, (907)561-8050 *FAX (907)561-8998 Committee Bylaws Bradley Lake Project Management Committee Dear Ron: In the August 1993 PMC meeting, Committee Bylaws Resolution. AEA/AIDEA comments are: you requested comments on the 1.Since budget modification decision making is being delegated,does this impose public notice and open meeting requirements on the subcommittee? 2.Does this delegation conflict with provisions of the Power Sales Agreement? 3.Budget matters require specific voting procedures and concurrence by AEA. your draft? Are these procedures preserved in Please call me if you have any questions. Very truly yours, DOM,Cool Dennis V.McCrohan Deputy Director (Energy) DVM:ec R.Snell,AIDEA VY D.Beardsley,AIDEA cc. ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY 480 WEST TUDOR «ANCHORAGE,ALASKA 99503-6690 «(907)561-8050 *FAX (907)561-8998 DATE:P 22/3 TIME: NOTICE:This facsimile may contain confidential information that is being transmitted to and is intended only for the use of the recipient named below. Reading,disclosure,discussion,dissemination,distribution,or copying of this information by anyone other than the named recipient or his or her employees or agents is strictly prohibited.If you have received this facsimile in error,please immediately destroy it and notify us by telephone, (907)561-8050. PLEASE DELIVER THE FOLLOWING PAGES TO: bien Lbdevir _oSE-7)Z TRANSMITTING FROM:907-561-8998 RICOH FAX 1000L THIS TRANSMITTAL IS FROM:fla,SrekkNUMBEROFPAGES(INCLUDING COVER PAGE):= IF YOU EXPERIENCE ANY PROBLEMS IN (VING,PLEASE TELEPHONE THE OFFICE NUMBER (907-561-8050)AND ASK FOR n-€,;,. SPECIAL INSTRUCTIONS OR COMMENTS LZ:Brill,Kako MEMORANDUM Prakdh BeiegtyanfSTONDaE TO:Dennis V.McCrohan PNC.Deputy Director (Energy) FROM:Daniel W.Beardsley Contracts Manager DATE:August 27,1993 SUBJECT:Resolution to amend Article 6.2 of the Bradley Project Management Committee Bylaws I have several concerns about the ability to delegate the PMC's decision making authority to a special committee.My concerns are as follows: -There are seven parties represented on the PMC.A quorum to do business requires five of the seven members,5.9,of which at minimum a majority of the votes are required for a approval,5.10.2.However,most significant matters require{the vote of at least four PMC members representingW,purchasers whose shares are greater than 51%,5.10.4,with(/the bulk of them also requiring the affirmative vote of the Authority,5.10.5.Budget matters are listed under 5.10.5, consequently it takes at least five members to approve those matters,the same iver as required for a quorum of thePMC.Sanne Wiace -The by-laws,5.11.2,and very likely the Alaska Statutes require that the meetings be public.This appears'to require that public notice of special committee meetings is required,5.4. - The ability to delegate decision making powers to a special committee is extremely limited and will require major modification of the by-laws and the Power Sales Agreement. For the above reasons I do not recommend delegating decision- making authority to a special committee.My recommendation is to appoint special committees and authorize them to make recommendations to the full PMC for decision.I do not believe that such recommendations would require a change to the by-laws, as the PMC would not be delegating its decision making authority. In the event the PMC does want to take the action needed to allow a special committee to assume decision-making authority,some serious changes in the various agreements will be required. > Ite BancBRADLEYLAKEPROJECTMANAGEMENTCOMMITTEEProdiWoO RESOLUTION 93 -11 A RESOLUTION of the Bradley Lake Project Management Committee (BPMC)regarding the authority of the Budget Subcommittee to adjust budgets for annual Project costs as defined under Section 8 (a)(vii)of the Bradley Lake Power Sales Agreement (PSA). WHEREAS the BPMC is authorized by the Bradley Lake Power Sales Agreement to adopt budgets for annual operating and maintenance (O&M)costs as defined under Section 8 (a)(vii)of the PSA for the operation of the Bradley Lake Hydroelectric Project and to make amendments to the budget from time to time;and WHEREAS the Budget Subcommittee of the BPMC is charged with researching and preparing the O&M budget and amendments thereto;and WHEREAS the Budget Subcommittee may meet on shorter notice and with more frequency than the BPMC;and WHEREAS the BPMC has determined that periodic minor O&M budget adjustments may be necessary for smooth and efficient operation of the project and BPMC;and NOW,THEREFORE BE IT RESOLVED that the BPMC authorizes the Budget Subcommittee to make budget adjustments within line items of the adopted budget;and BE IT FURTHER RESOLVED that the BPMC further authorizes the Budget Subcommittee to increase the adopted total O&M budget up to ten percent (10%)of the initially adopted total amount when necessary to meet unforeseen operating expenditures;and BE IT FURTHER RESOLVED that nothing in the authorization changes duties and responsibilities of the parties established by the Bradley Lake Power Sales Agreement;and BE IT FURTHER RESOLVED that the Budget Subcommittee shall report such changes to the BPMC at the BPMC's next scheduled meeting. ADOPTED by the Bradley Lake Project Management Committee at a regular meeting of the Committee held July 22,1993. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE David L.Highers\@hairman(ATTEST:BusthlbarBrentN.Petrie,Secretary DATE:We,Ax,193dburgertword\minutes\pme\res93-11 /