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HomeMy WebLinkAbout2023.06.23 BPMC.ExecutedMinutes___________________________________________________________________________ BPMC Minutes 6/23/23 Page 1 of 7 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) REGULAR MEETING AGENDA June 23, 2023 1. CALL TO ORDER Chair Janorschke called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:52 a.m. A quorum was established. 2. ROLL CALL (for Committee members) Brad Janorschke (Homer Electric Association [HEA]); John Burns (Golden Valley Electric Association [GVEA]); Tony Izzo (Matanuska Electric Association [MEA]); Arthur Miller (Chugach Electric Association [CEA]); Curtis Thayer (Alaska Energy Authority [AEA]); and Rob Montgomery (City of Seward). 3. PUBLIC ROLL CALL (for all others present) Jennifer Bertolini, Bryan Carey, Pamela Ellis, Bill Price, Michael Korniczky, Ryan McLaughlin, Mark Ziesmer (AEA); Joel Paisner (Ascent Law Partners); Brian Hickey (BPMC); Matt Clarkson, Sherri Highers, Andrew Laughlin, Russell Thornton (CEA); Dan Bishop (GVEA); Larry Jorgenson, Sarah Lambe, Martin Law, Andrew Patrick (HEA); David Pease, Matt Reisterer, and Tony Zellers (MEA). 4. AGENDA APPROVAL MOTION: A motion was made by Vice-Chair Burns to approve the agenda. Motion seconded by Mr. Montgomery. The motion to approve the agenda, as presented, passed without objection. 5. PUBLIC COMMENTS - None. 6. APPROVAL OF MEETING MINUTES – May 5, 2023 MOTION: A motion was made by Mr. Miller to approve the Minutes of May 5, 2023. Motion seconded by Mr. Thayer. The motion to approve the Minutes of May 5, 2023, passed without objection. 7. NEW BUSINESS A. Resolution 23-01 – Authorizing Homer Electric Association to conduct competitive procurement on behalf of the project MOTION: A motion was made by Mr. Burns to approve Resolution 23-01. ___________________________________________________________________________ BPMC Minutes 6/23/23 Page 2 of 7 Motion seconded by Mr. Izzo. Chair Janorschke requested to make friendly amendment to the second to the last “Be It Also Resolved That.” He asked Joel Paisner, Ascent Law Partners, to read the amended verbiage. Mr. Paisner read, “Be it resolved that, on behalf of the BPMC, HEA will provide its competitive procurement services to advertise for any services necessary for the Soldotna to Sterling Line and similarly provide competitive procurement services to procure all necessary materials for the Soldotna to Sterling Line and oversee the design and procurement services for the project.” Mr. Burns accepted the friendly amendment to the motion for clarification purposes. Mr. Izzo confirmed acceptance of the clarification as stated by Mr. Paisner. A roll call vote was taken, and the motion to approve Resolution 23-01, including the friendly amendment, passed unanimously. B. Retaining Consultant for engineering services to the BPMC – Lee Thibert Chair Janorschke advised that this morning, Mr. Paisner distributed to the members a BPMC agreement for consulting services to Thibert Consulting. Jennifer Bertolini, AEA, informed that MEA indicated that their attorney is on the phone call-in, but the phone call-in is not allowing access. Chair Janorschke noted the meeting will stand-by briefly. Mr. Thayer asked Mr. Paisner if he had a copy of the agreement. Mr. Paisner noted that he has a rough draft of an agreement that he only shared with Mr. Miller this morning. The proposal is to have a motion to authorize the consultant. The draft consulting contract would be to provide services for the Grid Resilience and Innovation Partnerships (GRIP) work. Mr. Paisner apologized that he did not distribute the draft contract to members. Chair Janorschke requested Mr. Izzo send David Pease, MEA, a text and instruct him to join the meeting through MS Teams. Mr. Izzo agreed, and Mr. Pease joined the meeting. MOTION: A motion was made by Mr. Montgomery that the Bradley Lake Project Management Committee approve retaining Thibert Consulting Group as a consultant for engineering services to the BPMC, and authorize the Chair to execute on behalf of the BPMC. Motion seconded by Mr. Burns. A member requested additional background information and clarification regarding the basis of the motion. Mr. Paisner explained that the subject was discussed in conversation with MEA regarding the consulting work engaged by Brian Hickey, BPMC. Mr. Paisner discussed his understanding of the issues that arose regarding MEA procuring a consultant. He advised that the BPMC is fully capable of retaining a consultant. The Bylaws authorize retaining a consultant. Mr. Paisner noted that Lee Thibert was retained in order to submit some of the applications for the GRIP projects. ___________________________________________________________________________ BPMC Minutes 6/23/23 Page 3 of 7 The consulting agreement is proposed in an effort to ensure to pay the consultant for the work performed for those applications. Mr. Thayer informed that he was advised that the public cannot hear and cannot access the telephonic audio of the meeting. Ms. Bertolini suggested that she could disconnect and reset the public line. Mr. Thayer noted that Matt Clarkson, CEA, is currently attempting to access. A brief at-ease was taken while the technical difficulties were addressed. Mr. Paisner continued his explanation that the proposed contract is to ensure that the consultant costs associated with the GRIP applications are covered. He expressed support for either BPMC retaining a consultant or the consistent practice of utilizing MEA to retain a consultant. Ms. Bertolini informed that the public telephonic line was again experiencing technical difficulties and the audio cannot be heard. Discussion occurred regarding how to proceed with the meeting. A comment was made that the public meeting was noticed, the meeting was called to order, technical difficulties are occurring so that the public cannot hear, and the BPMC is doing its best to make sure that the public can participate. Mr. Thayer responded that his understanding is that the Bylaws allow for best efforts. The meeting was open for the public comment agenda item and the meeting is physically open for anyone who wants to attend in-person. Mr. Thayer believes the meeting can proceed. Chair Janorschke requested Mr. Paisner continue his comments on the resolution. Mr. Paisner noted that he has completed his portion and requested Dan Bishop, GVEA, to provide additional comments. Mr. Bishop discussed that the consulting work was authorized within the budget amendment approved by the BPMC on November 21, 2022. Mr. Bishop reviewed the consultants who were utilized through the traditional avenue of existing utility contracts. He noted that Matt Reisterer, MEA, suggested this item was to be brought before BPMC, and requested that he provide comments. Mr. Reisterer gave further clarification that BPMC has previously authorized Brian Hickey to be contracted as a consultant through MEA. Mr. Hickey is an MEA employee, and he is 100% dedicated to BPMC. Mr. Reisterer believes that the BPMC authorized the use of EPS as the consulting contractor to complete the previous work on the GRIP applications. The switch to utilize Mr. Thibert as a consultant was not authorized by the BPMC. Mr. Reisterer explained that today’s authorization includes language for reimbursement of the previous work completed. He outlined his recommendation for a clear process for future consultant contracts. The consultant contracts would be identified, then reviewed by Mr. Paisner, and approved by BPMC for direct procurement by AEA. He discussed that using the traditional utility contracts remains an option when it is expedient and more efficient. Vice-Chair Burns asked if his understanding is correct that the expenses associated with Mr. Thibert are not additional expenses, but rather they are the expenses that were intended to be pursued through EPS that were not used. Mr. Hickey agreed, and noted that the initial intent ___________________________________________________________________________ BPMC Minutes 6/23/23 Page 4 of 7 was to use EPS. The situation occurred and there was not time to get BPMC to approve a contract and still meet the May 19, 2023 deadline for submitting the GRIP proposal. He explained that all of the work under this contract for Mr. Thibert has been accomplished. There is no additional work planned. Vice-Chair Burns expressed support for the resolution. He agrees with Mr. Reisterer’s recommendation for future consultant contracts. Vice-Chair Burns wants to ensure that Mr. Hickey keeps the BPMC informed regarding the retention of consultants. Mr. Hickey commented for clarity that he included the contractor plans in his briefs several times before the activity commenced. The information was made available. Sherri Highers, CEA, asked if it would be appropriate for BPMC members to have a copy of the contract. Mr. Paisner indicated that during this meeting, he has electronically forwarded a copy of the contract to BPMC members. Mr. Paisner recommended that the motion authorize the Chair of the BPMC to execute the agreement. There was no objection. A question was asked if this motion is limited to the retention of Mr. Thibert for the completed project work. There was agreement. Mr. Paisner commented for clarity that a budgeted amount for services does not automatically mean the work is contracted. The contracting process would still occur. Chair Janorschke requested clarification that the motion will be amended to reflect the specific consultant of the Thibert Consulting Group. There was agreement. The request was made for Mr. Paisner to read the motion as amended. Mr. Paisner stated that the motion is that the Bradley Lake Project Management Committee approve retaining Thibert Consulting Group as a consultant for engineering services to the BPMC, and authorize the Chair to execute on behalf of the BPMC. There was no objection by the Maker and the Second. A roll call vote was taken, and the motion to approve retaining Thibert Consulting Group as a consultant for engineering services to the BPMC, and authorize the Chair to execute on behalf of the BPMC passed unanimously. 8. OLD BUSINESS A. Railbelt Reliability Coordination Update i. GRIP III – Railbelt Innovation Resiliency Project Application Chair Janorschke requested Mr. Hickey provide the reports. Mr. Hickey informed that the final GRIP application was completed and filed by the State on May 18, 2023. Mr. Hickey noted he recently traveled to Washington, D.C. and met with people who are influential on the outcome of the application. It is expected that a decision on Topic 3 will be announced in fall or early winter. It is expected that a decision on Topic 2 will be announced in the next 45 days, and a ___________________________________________________________________________ BPMC Minutes 6/23/23 Page 5 of 7 decision on the Topic 1 application is anticipated 60 to 90 days afterward. Mr. Hickey discussed that the application requests $530 million that would require close to 50% matching funds from the State and utilities. He discussed potential opportunities for the matching funds, including Department of Energy (DOE) backstopping bond funding. Mr. Hickey gave a rough estimate of the budget to actuals for the concept papers. The total budget was $250,000, and he believes approximately $200,000 has been utilized. The actual costs for consulting, outside of Mr. Hickey’s costs, the Brownstein contract, and the Pawlowski contract, will be provided at the next meeting. There were no questions. 9. OPERATORS REPORT Chair Janorschke requested Martin Law, HEA, to discuss the included Operator’s Report. Mr. Law noted that the Battle Creek Diversion road has opened, and recently, a large boulder fell on the road and made the road impassable. Pictures of clearing the boulder are included in the report. Mr. Law discussed that the Bradley Lake new housing and renovations are ongoing. Delays to delivery have occurred and the house package is now expected to be delivered by August 1, 2023. Mr. Law reviewed the forced outage that occurred on June 13, 2023. The Diamond Ridge transmission line experienced and outage due to a short in a Bradley powerhouse lightning arrestor. This is original equipment, which is over 30 years old, and options are being explored to replace the lightning arrestors. Vice-Chair Burns asked if any aspect of the needle valve purchase was covered by insurance. Mr. Law explained that the needle valves were a normal purchase in regular maintenance. Vice-Chair Burns asked if the visit by STAR Insurance to inspect the pressure valves was routine. Mr. Law agreed. The inspections are conducted on a two-year cycle. There were no other questions or comments. 10. COMMITTEE REPORTS A. Budget to Actuals Report Chair Janorschke requested Mark Ziesmer, AEA, to discuss the included Budget to Actual Expense Report for the period of July 1, 2022, to May 31, 2023. Mr. Ziesmer discussed that the actuals for capital purchases not funded by R&C Funds shown on page two came in at $1,075,991. Most of the expensed amounts since the last period have been related to the Servo Design Project and the Bradley Microwave System Project. Schedule B shows the Operations and Maintenance (O&M) actual expenses are underbudget by $1,355,379. Mr. Ziesmer noted that Schedule D shows the actual expenses of the R&C Fund purchases at a total of $624,280. A dark grey section has been added to this schedule showing the breakdown of funding for the Spillway Raise and Expansion Project for Dixon Diversion. Schedule E shows the Battle Creek Non-R&C Capital Purchases FY23 actual expenses total $71,423. This total is underbudget. Schedule F shows the Battle Creek O&M expenses which were underbudget by ___________________________________________________________________________ BPMC Minutes 6/23/23 Page 6 of 7 approximately $24,000. This is primarily due to less than anticipated administrative expenses for the year. Schedule H shows the SSQ Line Capital Purchases at a total of $304,219. Schedule I shows the SSQ Line O&M expenses which were underbudget by approximately $241,000. This is primarily due to timing of actuals versus budget expenses for maintenance of overhead lines. Mr. Ziesmer indicated that the final page of Appendix A shows the costs for the 69 kV Remediation Project. Most of the work has been completed and he expects a few invoices are outstanding. Mr. Ziesmer noted the additional project in Appendix A of the SSQ Line Due Diligence Inspect/Repair should have been included initially in Appendix A. The budget is $175,000. Mr. Ziesmer stated that the total funding for the SSQ Line was approximately $2.7 million, and the total actual costs are approximately $1.2 million. The Budget Subcommittee will determine the use of the remaining $1.4 million funds. Vice-Chair Burns expressed appreciation to Mr. Zeismer for his report. He asked if the anticipation is that the budget will be on-budget, over-budget, or under-budget. Mr. Zeismer discussed that it depends on the individual schedule. He does not anticipate being over-budget. On Bradley Lake O&M Schedule B, he believes the under-budget amount will decrease. The invoices in the final month of June tend to be higher. He discussed the tightest budget is Battle Creek Schedule E, but he does not expect it to go over-budget. Vice-Chair Burns expressed that he was impressed with Battle Creek’s tight budget. A request was made to identify the Dixon Creek line item. Mr. Zeismer noted that it is located on Schedule D, page six, on the final line of the first section titled Spillway Raise & Expansion Project (aka Dixon Diversion). The grey box at the bottom of the page indicates the breakdown of expenses and payments. Mr. Thayer noted for the record that the Governor’s budget passed and was signed. There is $5 million included for the Dixon Diversion Study that will be available July 1, 2023. There were no other questions or comments. B. O&D Report Chair Janorschke requested Andrew Patrick, HEA and Chair of the O&D Committee, to provide the report. Mr. Patrick noted the utilities’ routine scheduling of generation to minimize the risk of spill for the next 12 months is ongoing. A normal inflow year of about 400,000 acre-feet is expected. Mr. Patrick reiterated the occurrence of the plant trip that was discussed earlier. All equipment is back in service. Scoping and budget estimates will be provided. The lake levels are increasing, but are below the norms for this time of year. The committee assignments are listed in the report. Next months’ O&D meeting will be held at the project and the members will have the opportunity to see the project. There were no questions. MOTION: A motion was made by Mr. Miller to enter into Executive Session to discuss confidential matters regarding Required Project Work and financing, the immediate knowledge of which may have an adverse effect on the Authority or the Project.