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HomeMy WebLinkAbout2023.07.28 BPMC.ExecutedMinutes ___________________________________________________________________________ BPMC Minutes 7/28/23 Page 1 of 5 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) REGULAR MEETING AGENDA July 28, 2023 1. CALL TO ORDER Chair Janorschke called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:04 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) Sunny Morrison (Accu-Type Depositions); Jennifer Bertolini, Bryan Carey, Pamela Ellis, Bill Price, Ryan McLaughlin, Mark Ziesmer (AEA); Joel Paisner (Ascent Law Partners); Brian Hickey (BPMC); Matt Clarkson, Sherri Highers, Andrew Laughlin, Mike Miller, Russell Thornton (CEA); Dan Bishop, Nathan Minnema (GVEA); Larry Jorgenson, Sarah Lambe, Martin Law (HEA); David Pease, Matt Reisterer, John Sinclair, Josh Unidentified, Tony Zellers (MEA), and Bernie Smith (Public). 4. AGENDA APPROVAL MOTION: A motion was made by Vice-Chair Burns to approve the agenda. Motion seconded by Mr. Izzo. The motion to approve the agenda, as presented, passed without objection. 5. PUBLIC COMMENTS - None. 6. APPROVAL OF MEETING MINUTES – June 23, 2023 MOTION: A motion was made by Mr. Thayer to approve the red-lined version of the Minutes of June 23, 2023 sent out by Chair Janorschke. Motion seconded by Mr. Montgomery. Jennifer Bertolini, AEA, informed that the Minutes of June 23, 2023 that are online and within the Committee packet are the red-lined version referenced by Chair Janorschke. The motion to approve the Minutes of June 23, 2023, passed without objection. 7. NEW BUSINESS A. Annual Meeting and Election of Officers ___________________________________________________________________________ BPMC Minutes 7/28/23 Page 2 of 5 Chair Janorschke requested Joel Paisner, Ascent Law Partners, to conduct the annual meeting and election of officers. Mr. Paisner advised that today’s meeting is the annual meeting per the Bylaws. He conducted the election of officers. MOTION: A motion was made by Mr. Miler to nominate and approve Mr. Janorschke as Chair, and nominate and approve Mr. Burns as Vice-Chair. Motion seconded by Mr. Thayer. A roll call vote was taken, and the motion to approve Mr. Janorschke as Chair, and to approve Mr. Burns as Vice-Chair passed unanimously. B. Resolution 23-03 – Authorize Chugach Electric Association to conduct additional competitive procurement on behalf of the project. MOTION: A motion was made by Vice-Chair Burns to approve Resolution 23-03. Motion seconded by Mr. Montgomery. Discussion occurred and Mr. Miller requested to make a friendly amendment to the language following the last “Be It Also Resolved That,” to read “all other material tasks associated with the SSQ Line shall be performed under a written contract approve by the BPMC.” The Maker and the Second approved the friendly amendment. There were no objections. A roll call vote was taken, and the motion to approve Resolution 23-03, including the friendly amendment, passed unanimously. 8. OLD BUSINESS A. Railbelt Reliability Coordination Update Chair Janorschke requested Brian Hickey, BPMC, provide the update. Mr. Hickey summarized the written report included in the Committee packet. Additionally, he is working on a concept paper on a different way to manage transmission in the Railbelt going forward if a substantial amount of federal funding is received. The Technical Group will review the draft and provide comments before it is presented. Vice-Chair Burns asked if there were any announcements regarding the Grid Resiliency and Innovation Partnerships (GRIP) applications. Mr. Hickey indicated that he met with the Brownstein lobbying team yesterday and they have been in Washington, D.C. recently discussing Alaska’s story and information with the Administration, federal delegations, and staff. An update will be provided within the coming month. Mr. Miller inquired if there are any discussions regarding Round 2. Mr. Hickey responded that the lobbying team indicated the prospect of a fall timeframe, but they do not have a specific date. He noted that Brownstein discussed the possibility of a government shutdown. In that event, a delay would certainly occur throughout all the agencies, including Department of Energy (DOE). There were no additional questions. 9. OPERATORS REPORT Chair Janorschke requested Martin Law, HEA, to discuss the included Operator’s Report. Mr. Law reviewed the written report included in the Committee packet. Within the Hydraulics section ___________________________________________________________________________ BPMC Minutes 7/28/23 Page 3 of 5 of the report, the columns were renamed for clarity. The Bradley Fishwater column is shown in acre-feet. The Battle Creek MIF column numbers are incorrect and are shown in cubic feet per second (cfs). The numbers should be reported in acre-feet. Mr. Law will provide members with a corrected report. Chair Janorschke commented positively on the pictures in the report. He asked for information regarding the legislative visit that occurred two days ago. Mr. Thayer discussed that Representative Bryce Edgmon, Representative Zack Fields, Representative Neal Foster, Senator Cathy Giessel, Senator Jesse Bjorkman, and Commissioner Adam Crum attended the successful visit to the dam site. The weather was clear blue skies. Mr. Thayer noted there is additional interest for site visits from other State legislators and staff of U.S. Senators. Vice-Chair Burns asked if the visits include informational discussions regarding transmission. Mr. Thayer agreed that extensive discussions occur and include information regarding transmission lines, upgrades, GRIP funding, as well as a Dixon Diversion route overfly. There were no additional questions. 10. COMMITTEE REPORTS A. Budget to Actuals Report Chair Janorschke requested Mark Ziesmer, AEA, to discuss the included Budget to Actual Expense Draft Report for the period of July 1, 2022, to June 30, 2023. Mr. Ziesmer reviewed the information. He noted that this report is in draft form, as AEA is keeping the accounts payable open until mid-August to capture as many of the 2023 costs as possible. Mr. Ziesmer noted that he has requested advice from the Budget Subcommittee regarding Schedule H SSQ Line Capital Purchases Not Funded by R&C Fund because the actuals to-date are $282,774, which is above the $250,000 limit. The Budget Subcommittee will give direction as to options to either amend the FY23 and FY24 Budgets or to transition the costs to Appendix A, Required Project Work Bond Series 11. Vice-Chair Burns requested additional regarding the SSQ Line construction, as no funds were budgeted for the project for FY23 and FY24. Mr. Ziesmer expressed his understanding that typically there is a non-R&C portion of the budget that would be included at the beginning of a project that would eventually get transitioned to R&C funding. The SSQ Line project is at the stage to be transitioned to R&C funding. Vice-Chair Burns requested that the budgeted amount and the expense of the project is shown clearly. Mr. Thayer understands that the Budget Subcommittee is reviewing how to account for the SSQ Line expenses going forward. He expressed support for separating the project to have its own standalone budget. He noted that it is currently a $166 million project. Mr. Thayer discussed that another accountant position will be added to focus on BPMC work of Bradley Lake, Battle Creek, SSQ Line, and transmission and BESS. Chair Janorschke requested clarification regarding the Encumbered column on Appendix A. He asked if the amount was for DOWL Engineering. Mr. Ziesmer discussed that item is a level of commitment that the potential costs could be incurred from DOWL. Mr. Thayer requested Bryan Carey, AEA, to provide additional explanation. Mr. Carey explained that an NTP with DOWL, using its subcontractor EPS, was established at the direction of AEA to evaluate the HEA BESS, which was being considered for purchase. No information on the battery has been provided and no action has occurred. Chair Janorschke asked if the invoice received from ___________________________________________________________________________ BPMC Minutes 7/28/23 Page 4 of 5 DOWL after they submit a study of HEA’s BESS will be included in the 35% allocation of excess bond payments. Mr. Ziesmer agreed, and noted that actual costs to-date are $706. Chair Janorschke requested the definition of encumbered and asked if the utilities will pay for the encumbered amount. Mr. Ziesmer noted that the utilities will not pay for the encumbered amount, as it will be paid for by Bond Series 11 funding within the 35% allocation. Discussion continued and the encumbered amount is the potential amount that could be invoiced for study work related to the BESS. If the funds are not expended, the remaining encumbered amount will be cleared from the record books. There were no other questions. B. O&D Report Chair Janorschke requested the O&D Report be given. Joshua Unidentified noted that he is the Vice-Chair of the O&D Committee, and that he is presenting the report provided in the Committee packet because Andrew Patrick, HEA and Chair of the O&D Committee, is on vacation. He discussed the highlights of the O&D Committee’s annual meeting last week that was held at Bradley Lake. There were no questions. Chair Janorschke requested a five-minute break. There was no objection. The Committee reconvened its regular meeting. 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. Motion seconded by Mr. Thayer. A roll call vote was taken, and the motion to enter into Executive Session passed unanimously. 11. EXECUTIVE SESSION: 10:49 a.m. (Bylaws Section 5.11.4) – To discuss confidential financial matters regarding Required Project Work and financing, the immediate knowledge of which may have an adverse effect on the Authority or Project. The Committee reconvened its regular meeting at 11:53 a.m. Chair Janorschke stated that no action was taken during executive session. 12. MEMBERS COMMENTS Mr. Miller expressed appreciation to AEA, and for the informative Operator’s Report and Committee reports. Mr. Thayer made a follow-up comment regarding the legislative trips and the indispensable coordination efforts of Ms. Bertolini, and the knowledgeable information provided by Mr. Hickey as tour guide. Vice-Chair Burns expressed appreciation to Ms. Bertolini for her efforts and providing the materials. He commented on the excellent reports, and the candid and informative dialog from Committee members. Mr. Izzo echoed previous comments. He added a special thanks to the Finance Committee for