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HomeMy WebLinkAbout2022.07.15 BPMC.ExecutedMinutesBRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) SPECIAL MEETING AGENDA July 15, 2022 1. CALL TO ORDER Chair Izzo called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:08 a.m. A quorum was established. 2. ROLL CALL (for Committee members) Tony Izzo (Matanuska Electric Association [MEA]); John Burns (Golden Valley Electric Association [GVEA]); Arthur Miller (Chugach Electric Association [CEA]); Brad Janorschke (Homer Electric Association [HEA]); Curtis Thayer (Alaska Energy Authority [AEA]); and Rob Montgomery (City of Seward). 3. PUBLIC ROLL CALL (for all others present) Bryan Carey, Dona Keppers, David Lockard, Beazit Redzepi (AEA); Joel Paisner (Ascent Law Partners); Brian Hickey (BPMC); Sherri Highers (CEA); Dan Bishop; Pete Matt Clark; Andrew Patrick (HEA); David Pease; Tony Zellers (MEA); Andrew Laughlin; 4. AGENDA APPROVAL MOTION: A motion was made by Mr. Thayer to approve the agenda. Motion seconded by Mr. Burns. The motion to approve the agenda passed unanimously. 5. PUBLIC COMMENTS — None. 6. NEW BUSINESS A. Approval of a consultant to the BPMC to assist in securing IIJA Funds. Chair IZZO asked Brian Hickey to introduce and provide background and overview of the issue. Mr. Hickey explained that the tactical team, formally entitled Railbelt Subcommittee on Infrastructure and Policy, with representatives from all of the utilities, worked with Mike Pawlowski to identify a consultant to assist the BPMC in navigating and securing successful applications for IIJA Funds to construct transmission in the Railbelt and other items. Mr. Hickey said Mr. Pawlowski recommended three consultants including Brownstein, Van Ness and Strategies 360. The tactical team met with Brownstein when in Washington D.C., and met Strategies 360 via a Teams on another date. Van Ness was unable to become available for an interview. Mr. Hickey stated the Team also requested proposals from Brownstein and Strategy 360. The Brownstein proposal was less than Y/2 the price of Strategy 360. After receiving the proposals from both entities, the team inquired with both Brownstein and Strategies 360 with additional questions to ensure the Team was comparing apples to apples including BPMC Minutes 7/15/22 Page 1 of 4 number of FTE's assigned to project, strategy, and how to execute. The team's additional follow-up revealed Strategy 360's proposal would dedicate 5.75 FTE to the contract, while Brownstein would dedicate 7.75 FTE. Strategies 360 seemed to articulate a clear vision, but not a good understanding of what we are trying to do on the Railbelt on process while Brownstein demonstrated a clearer articulation of what the Railbelt is working to achieve. Ultimately, the subcommittee selected Brownstein group and recommends the BPMC retain Brownstein to support the BPMC in securing IIJA Funds for transmission improvements and more. Mr. Hickey explained the reason for calling this Special Meeting is because Notices of Intent and Notices of Funding Opportunities are being issued very quickly and the belief is they will be on the street this year. He said Mike Pawlowski suggested the BPMC's strategy be in place as soon as possible. He said the team moved very quickly in the selection process because the Department of Energy and others are also moving very quickly with IIJA opportunities. Mr. Hickey said the Brownstein proposal is less expensive and would cost $12,500 per month for the first three months and $15,000 per month for the remainder of the 1-year contract. He also said Mr. Hickey said he is requesting approval by the BPMC for him and Joel Paisner to negotiate a contract with Brownstein. He said is available for questions. Arthur Miller asked what are the specific deliverables from Brownstein on a monthly basis? Mr. Hickey responded the plan has not been developed. The deliverables would be identified at the kick off meeting, and also develop metrics. He said the primary focus is secure a consultant to assist the BPMC in identifying pathways to secure funding from multiple buckets of federal money. 6. MOTION: A motion was made by Vice Chair Janorschke to authorize retaining Brownstein to assist the BPMC in securing IIJA funding from the Federal Government. Motion seconded by Mr. Burns. Curtis Thayer said he was able to talk with Mr. Hickey earlier in the week. He said he has concerns, some of which were alleviated after those discussions, some were not. He has concerns and AEA was not a part of the tactical team. He also questioned what metrics did the team ask the vendors to deliver, especially if there was not an RFP. He recognized that cost is a big factor, but stated relationships on capitol hill are also a factor. To select a vendor Mr. Thayer said there are concerns with moving too fast without deliverable identified. He wondered if even checking in with the Delegation in DC for any recommendations. Brian Hickey explained he reviewed the decision with Bryan Carey and also offered to walk through what was presented to potential consultants with Mr. Thayer. Mr. Thayer replied he understood in discussions with Bryan Carey, that Mr. Carey was not comfortable with the information provided and the process. He suggested ensuring we are working with the Congressional Delegation and being in alignment with the Governor's office is essential. Also working with DOE, DOT and DOD are crucial. With Congressional Spending being re -introduced, it is imperative ensuring these earmarks can be BPMC Minutes 7/15/22 Page 2 of 4 implemented, and that the Alaska Delegation, the State and the consultant are aligned. John Burns said he was involved in the tactical team and is comfortable with retaining Brownstein. He agreed it is important that the administration is involved. He qualified, unless there is an urgency, he would recommend waiting to ensure the Delegation is supportive and AEA is fully aligned. Brian Hickey agreed and said we all need to be in agreement. He said he will spend time with Curtis to ensure the BPMC is in alignment with what the administration envisions. He said this could be considered at the next regular BPMC Meeting. Mr. Burns recognized the Department of Energy is crafting regulations right now and said the consultants all suggested engaging with the agencies at the drafting stage is crucial, but believed retaining the consultant could wait until the next regular BPMC Meeting. Mr. Hickey again said he will work on identifying deliverables and have necessary conversations to ensure alignment with delegation and administration. Vice Chair Janorschke appreciated the comments, the efforts of the tactical Team, and appreciated the efforts of both Curtis and Brian, but agrees the BPMC should gather more information. Arthur Miller agreed with discussion and holding on action until the next meeting. Rob Montgomery said he was a part of the tactical team and said much of the team's discussion focused on strategy and approach. He acknowledged deliverables were not addressed. He said Mike Pawlowski said either firm would be fine. MOTION: A motion was made by Mr. Thayer to table the authorization to retain Brownstein as a consultant until July 29, 2022. Motion seconded by Mr. Montgomery. The motion to table the authorization to retain Brownstein as a consultant passed unanimously. MOTION: A motion was made by Mr. Thayer to enter into Executive Session to discuss confidential financial matter the immediate knowledge of which would clearly have an adverse effect on the finances of the Authority or the Project. Motions seconded by Montgomery. 7. EXECUTIVE SESSION: 10:38 a.m. (Bylaws Section 5.11.4) — To discuss confidential financial matters the immediate knowledge of which may have an adverse effect on the Authority or the Project. The Committee reconvened its regular meeting at 11:11 a.m. Chair Izzo advised that no action was taken on the matters discussed during Executive Session. 8. MEMBERS COMMENTS BPMC Minutes 7/15/22 Page 3 of 4 Mr. Burns appreciated Brian Hickey's efforts. Mr. Miller said good discussion and also appreciated Brian's work. Mr. Montgomery echoed other comments and also appreciate Joel Paisner's efforts with the Resolution and Brian Hickey as well. Vice Chair Janorschke also echoed the comments of others and thanked Sherri Highers for the work on the term sheets and Joel's efforts as well. Curtis appreciated all the work. He said AEA met with Governor's office yesterday for quite some time discussing the IIJA, and looks forward to the BPMC working with Delegation and administration. Chair Izzo is excited about the July 29t" meeting and agreed with all the comments. 14. NEXT MEETING DATE - July 29, 2022 15. ADJOURNMENT There being no further business for the committee, the meeting adjourned at 11:14 a.m. Curtis Thayer, Secretary BPMC Minutes 7/15/22 Page 4 of 4