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HomeMy WebLinkAbout2021.06.25 BPMC.ExecutedMinutesBRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) REGULAR MEETING AGENDA June 25, 2021 CALL TO ORDER Chair Izzo called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 9:38 a.m. A quorum was established. 2. ROLL CALL (for Committee members) Tony Izzo (Matanuska Electric Association [MEA]); John Burns (arrived late) and Unidentified Designee (present on phone during roll call) (Golden Valley Electric Association [GVEA]); Lee Thibert (Chugach Electric Association [CEA]); Larry Jorgensen (present on phone during roll call), Brad Janorschke (phone) (arrived late) (Homer Electric Association [HEA]); Curtis Thayer (Alaska Energy Authority [AEA]); Cory Borgeson (phone) (arrived late) (City of Seward (Seward)). 3. PUBLIC ROLL CALL (for all others present) Colette Grower (phone) (Accu-Type Depositions); Jennifer Bertolini, Debra Caldwell, Brian Carey, Dona Keppers, Kirk Warren, Melissa Yang (AEA); Crystal Enkvist (phone), Brenda Mead (phone), Lisa Heikes (phone) (ARECA Insurance Exchange); Sherri Highers (phone) (CEA); Stefan Saldanha (Department of Law); Sarah Villon (phone) (GVEA); Bob Day (phone), Andrew Patrick (phone) (HEA); Kirk Gibson (phone) (McDowell Rackner Gibson, PC); David Pease (phone), Matt Reisterer (phone), Tony Zellers (MEA); Bernie Smith (phone) (Public); Micki Clemson (phone), and Steve Pekala (phone) (Trean Intermediaries). 4. AGENDA APPROVAL MOTION: A motion was made by Mr. Thibert to approve the agenda. Motion seconded by Mr. Thayer. A roll call vote was taken, and the motion to approve the agenda passed unanimously. 5. PUBLIC COMMENTS Bernie Smith requested that Item 7. Executive Session is moved after Item 12. Committee Reports. He commented that his request may be moot since the agenda was already approved. 6. APPROVAL OF MEETING MINUTES - May 21, 2021 MOTION: A motion was made by Mr. Thayer to approve the Minutes of May 21, 2021. Motion seconded by Mr. Thibert. A roll call vote was taken, and the motion to approve the Minutes of May 21, 2021 passed unanimously. 7. EXECUTIVE SESSION: None BPMC Minutes 6/25/21 Page 1 of 10 Discuss budget matters which the immediate knowledge of which would clearly have an adverse effect upon the finances of the Authority of the Project. Chair Izzo requested comment from Counsel Kirk Gibson, McDowell Rackner Gibson, PC, and members regarding matters that need to be discussed within executive session. Mr. Gibson explained that the executive session was listed in the event there were concerns regarding the proposed budget amendment 2. If there are no concerns, Mr. Gibson does not believe there is a need to go into executive session. There were no comments or concerns. 8. OLD BUSINESS A. By -Law Work Chair Izzo requested that Mr. Gibson provide an update on the status of the Bylaws. Mr. Gibson informed that work on the comments received is ongoing. He expects to present the updated Bylaws to members and their counsel within the next seven to 10 days. The hope is to be able to approve the updated Bylaws at the July 30 meeting. There were no questions. B. Transmission Issues Chair Izzo reported that he requested this item as a placeholder for the Committee to discuss next steps regarding project required work. He explained that the SSQ Line was acquired last year and incorporated into the Bradley Project. There are right-of-way conditions regarding the removal of certain unused assets within a five-year period. Chair Izzo suggested that it is time to initiate the effort to upgrade the SSQ Line. Mr. Thibert agreed with Chair Izzo's suggestion. He noted that the report states that the 69 kV line poles are lying on the ground, which indicates a matter of urgency. Mr. Thibert believes that the O&M activities and upgrade activities are considered required project work since the project is considered required project work. Chair Izzo agreed. MOTION: A motion was made by Mr. Thibert to authorize Alaska Energy Authority to move forward with a consultant to conduct the design and permitting work for the upgrade of the 116 kV Line and 69 kV SSQ Lines. Motion seconded by Mr. Janorschke. Mr. Thayer noted that AEA can immediately begin to move forward. He believes that work on the 69 kV line is of immediate concern and comments from the public have been received regarding the condition of the line. Mr. Thayer remarked that there is funding available for this work that was included in the acquisition cost. Mr. Jorgensen agreed with the previous comments and encouraged the action of moving forward. He noted that one of the advantages of beginning the work now is being able to work with staff who are familiar with the history of the line. Mr. Thibert inquired regarding the possibility of authorizing HEA to immediately address the lines that are falling down. Chair Izzo agreed that one of the goals is to immediately address any needs regarding the 69 kV, which can be coordinated through AEA and HEA. Another goal is to initiate the effort to upgrade the line. Mr. Borgeson asked if a budget adjustment is necessary at this point to ensure there is funding available to complete any additional maintenance as result of the line condition. Mr. Thayer BPMC Minutes 6/25/21 Page 2 of 10 noted that there is funding set aside in the acquisition cost of the SSQ Line to remediate the 69 kV Line and to remove certain poles, as conditions of the sale and permits. Debra Caldwell, AEA, agreed and noted that funds were obtained through bond proceeds to pay for the remediation costs. The activities are not included in the operating budget and the activities would not require a budget amendment. Mr. Borgeson requested that Chair Izzo make a committee assignment to determine how the required project work will factor into the true -up of the excess payments going forward. Chair Izzo believes there is a current committee assignment to review this required project work. His understanding is that the required project work would be funded from the excess payments. Chair Izzo requested Mr. Gibson verify that his understanding is accurate. Mr. Gibson believes the understanding is accurate. Mr. Gibson noted that he has to review the issue of the .04 cent cap as it relates to moving forward with the excess payment. Chair Izzo asked if this issue is best placed as an assignment for Mr. Gibson and the Budget Subcommittee or solely for Mr. Gibson. Mr. Gibson believes the best course of action is that he will work together with the Budget Subcommittee regarding the issue of the .04 cent cap. A roll call vote was taken, and the motion to authorize Alaska Energy Authority to move forward with a consultant to conduct the design and permitting work for the upgrade of the 115 kV Line and 69 kV SSQ Lines passed, with no audible response from GVEA. 9. NEW BUSINESS A. FY22 Proposed Budget Amend 2 Chair Izzo requested Matt Reisterer, MEA, and Debra Caldwell, AEA, present on the FY22 Proposed Budget Amendment 2. Ms. Caldwell highlighted that the insurance proposal was received last week and the premiums were higher than originally budgeted. The difference is greater than $250,000 and requires the budget amendment proposed today. The Budget Subcommittee met with the insurance team last week. Ms. Caldwell informed that Crystal Enkvist and the team from ARECA Insurance Exchange and Trean Intermediaries are on the line today to answer any questions. Ms. Caldwell reviewed the proposed FY22 budget amendment 2. The key insurance premium increase is shown under the Operations & Maintenance Schedule B of $516,444. Since this proposed increase is for Operations & Maintenance, there is a requirement to have 20% within the operating reserves. The increase of approximately $103,000 has been added to the operating reserves. The two increases result in an increase of utility contributions of $619,733 for the year. The itemization of the increased utility contributions is shown on page 14 of the amendment. Mr. Reisterer commented that the Budget Subcommittee expected some level of premium increase, but was concerned and surprised about the size of the actual insurance premium increase. The Budget Subcommittee met with representatives from ARECA Insurance Exchange and Trean Intermediaries to discuss the effects of the hardening property insurance market and the reinsurance layers that are behind these high levels of coverage. ARECA lost its traditional reinsurance carrier coverage on short notice and had to go out to the market to receive the coverage that the BPMC requires through the agreements. The largest risk is earthquake risk, with a probable maximum loss of $50 million. Mr. Reisterer noted that the final revised numbers from the insurance company are slightly less than the amounts reflected in the BPMC Minutes 6/25/21 Page 3 of 10 amendment. Mr. Reisterer commented that the insurance is necessary and the Budget Subcommittee was supportive of moving forward with the coverage. Mr. Reisterer requested Ms. Enkvist provide additional explanation. Ms. Enkvist introduced Brenda Mead and Lisa Heikes of ARECA, and Steve Pekala and Micki Clemson of the new broker Trean Intermediaries. She explained that insurance providers around the nation experienced a very challenging renewal going into 2021, with steep increases. ARECA notified its policyholders early on that price increases were anticipated due to a hardened market, a changing appetite for risk in the reinsurance market, the pandemic, wildfires, flooding, and other global issues. Ms. Enkvist discussed that an unanticipated development occurred with ARECA's reinsurer Zurich that provides coverage for property and equipment breakdown. Zurich decreased its hydro -capacity from $50 million to $10 million, which is below the necessary coverage. ARECA successfully went out into the market and found the required coverage, with reputable reinsurance carriers. Ms. Enkvist apologized for the unavoidable price increase that is outside of ARECA's control. She credited Brian Carey, AEA, for repeatedly requesting updates on the price increase and shepherding the developments. She was unable to give him definitive information for budget purposes because of the complex broker package and the duration of time it was out in the market. Ms. Enkvist informed that the requested newest quote was provided this morning and has a reduction of about $100,000 for the property side. Also provided were different options regarding deductible levels, which could achieve additional savings. Ms. Enkvist commented that BPMC is a very important client and ARECA does not hold a large margin on this account. She indicated that the new broker will be working with ARECA to restructure the reinsurance program to spread the risk, which will hopefully result in better pricing. Mr. Janorschke commented that price increases are occurring in other areas of the business, including the price of copper and PVC. He asked Ms. Enkvist for additional information regarding the reason Zurich decreased its hydro -capacity to $10 million. Ms. Enkvist noted that ARECA was surprised to discover that Zurich claimed they did not know they were insuring dams for the last decade. All of a sudden, Zurich's appetite for risk changed and their capacity was lowered, providing six months' notice. Ms. Enkvist requested Mr. Pekala provide additional comments. Ms. Clemson noted that Mr. Pekala was disconnected and requested his admittance from the waiting room. Ms. Clemson explained that Trean has discussed with Zurich regarding their change in overall risk appetite and their capacity decrease due to struggling affects with capacity in the retro-market. Capacity is being cut by a variety of markets across all lines of business and is not specific to ARECA and is not specific to hydro. Mr. Janorschke expressed his support for the amendment. Mr. Borgeson asked specifically if the policy contains earthquake coverage. Ms. Enkvist replied yes. Mr. Borgeson inquired if the premium increase is double than it was last year. Ms. Enkvist reported that the expiring premium was $692,019. The renewing premium, without considering changes in deductible levels, is about $1,263,790. Mr. Borgeson expressed support for the coverage now. He suggested to Chair Izzo that over the course of the year, the insurance needs should be specifically evaluated for discussion going forward. Mr. Borgeson informed that this insurance increase is not going to affect the cost of the project energy to members. Chair Izzo agreed. Mr. Thibert inquired if any of the deductibles have been changed from last year's amounts. Ms. Enkvist reported that the current proposal that was submitted this morning includes the same BPMC Minutes 6/25/21 Page 4 of 10 deductibles as last year, as well as options to change the deductibles for earthquake, flood, and equipment breakdown, that could be selected dependent on risk appetite, which may decrease the premium amount. She noted that BPMC has had no claims and has an exceptional loss history. Mr. Thibert indicated that the Budget Subcommittee probably has not had an opportunity to review the revised proposal that was sent this morning, including the possible options. Chair Izzo asked the Budget Subcommittee if they have had a chance to review the revised proposal and if they have a recommendation. Mr. Reisterer responded that the Budget Subcommittee has not reviewed the proposal that was received this morning. He noted that the Budget Subcommittee would value AEA's opinion and the opinion of O&D regarding the deductible on the equipment breakdown. He reported that the current property deductible is at $5 million for the policy amount of $50 million. Discussions would have to occur regarding the comfort level of increasing the property deductible to either $10 million or $15 million, while maintaining the policy level of $50 million. Chair Izzo informed that Mr. Burns has joined the meeting. Mr. Thayer commented for the record that the policy expires on Wednesday of next week, with the new coverage effective July 1. Chair Izzo requested comment from the Budget Subcommittee. MOTION: A motion was made by Mr. Thibert to direct AEA to buy insurance coverage effective July 1, 2021, and to approve the second amendment of the Fiscal Year 2022 Bradley Lake Hydroelectric Project Budget, as presented. This budget amendment increases the operations and maintenance budget for insurance premium expense, and increases the annual participant contributions by $619,733. Motion seconded by Mr. Burns. Mr. Thibert expressed appreciation for the work conducted by the Budget Subcommittee and ARECA. He believes the current timeframe is too short to review additional options. He encouraged support for the current insurance structure as presented, and emphasized the importance of focusing on possible alternatives and changes going forward. Mr. Burns commented that this predicament of increased insurance premiums is, unfortunately, the sign of the times. A roll call vote was taken, and the motion to direct AEA to buy insurance coverage effective July 1, 2021, and to approve the second amendment of the Fiscal Year 2022 Bradley Lake Hydroelectric Project Budget, as presented, passed unanimously. 10. OPERATORS REPORT Chair Izzo welcomed Bob Day, HEA, to present the Operator's Report. Mr. Day discussed the inflows to Bradley from Battle Creek were at 1,500 acre-feet. The snow is clearly starting to melt. The lake level has increased within the last week. The needle cone rebuild is ongoing. Mr. Day commented that the experience of increased time of delivery and increased cost of items and materials has continued and is affecting all aspects of the operation. Work is advancing on the site clearing for the new building and cost increases are expected. BPMC Minutes 6/25/21 Page 5 of 10 Mr. Day outlined the smaller bridge design for replacing the bridge. There will be a budget overrun due to increased lumber prices. This is a safety issue that has to be addressed. The IRIS monitoring system installation has been delayed due to problems with components that are being considered and resolved. The two pinhole leaks in the fire system pipes were cut out and extensive corrosion and silt within the interior of the pipe was found. Approximately 40 feet of pipe was removed, because that is the amount of pipe that was on -hand. Mr. Day informed that he does not know how far down the pipe the corrosion continues. Further investigation and repair will follow. Mr. Day informed that the work on controlling invasive weeds has been successful, but is ongoing due to a new infestation. The TESLA recorder installation and calibration has been completed. He noted that the road was opened to the dam on June 3, but as of Wednesday, the road was impassable with a 4-foot to 10-foot drift across a steep section, causing unsafe conditions. The 10-year GIS inspection is scheduled for July 19. The first retirement of a tenured Bradley Lake employee will occur Monday. Mr. Day commented that he is confident that additional retirements will follow because many employees are within retirement age. This will bring challenges going forward. Mr. Day discussed that the sewer system at Bradley backed up about week -and -a -half ago and the septic system had to be pumped out. A barge was required to bring a septic pumping truck to Bradley, which prompted staff to utilize the barge to ferry other necessary items over and to take away garbage items. The successful FERC Part 12 Inspection occurred on June 9 and 10. Mr. Day informed that there have been many bear sightings at the site. Mr. Burns asked if Mr. Day has a sense of the magnitude of the budget impacts of the discussed issues. Mr. Day explained that at this point, the extent of the replacement work that is needed on the fire system is unknown. The bridge repair has been discussed as an item since 2006, and the repair is now at a critical stage for action. Chair Izzo inquired if it would be helpful for the O&D Committee, as an assignment, to discuss potential needs over the next five or 10 years to repair and replace items that are at the end of their useful life. Mr. Day acknowledged that one of the obligations HEA has to the BPMC is to prepare a 25-year look -ahead every five years. That report was initialized a couple of months ago and will review the anticipated long-term replacements and budgeting document. The report should be completed at the end of the summer. Mr. Day highlighted the name of the report. It is noted that the report will be referenced in the Minutes as the 5-year report, as the correct spelling has not been verified. Chair Izzo stated he looks forward to the 5-year report and the recommendations can be referenced as part of the budgeting process. Mr. Janorschke encouraged the O&D Committee to visit the site as soon as Mr. Day has completed the 5-year report in order to review the analysis and provide input. Mr. Burns asked if a look -back has been conducted on previous 5-year reports to determine if these latest items have been accurately identified and anticipated in the reports. Mr. Day noted that he has not conducted a formal audit, but that he uses the 5-year report as the method to prepare the budget and to determine the long-term capital projects. The 5-year report has been extremely useful in that regard. Mr. Thayer expressed that it is a good time to have a discussion regarding some of the capital improvements because the work could be required project work. Mr. Day agreed and believes the 5-year report would be excellent to serve that purpose. BPMC Minutes 6/25/21 Page 6 of 10 11. O&D REPORT Chair Izzo invited Andrew Patrick, HEA and Vice -Chair of the O&D Committee, to present the O&D Report. Mr. Patrick informed that the O&D discussed at their meeting many of the items reviewed in the Operators Report. One of the SVCs is maintained by HEA and the other one is maintained by CEA. The O&D approved a consolidated maintenance agreement through ABB for the work on both SVCs. This resulted in cost savings. Mr. Patrick highlighted that the two previous assignments from the BPMC were discussed. Firstly, the O&D unanimously agreed to direct AEA to work with DOWL to establish metering solutions to resolve redundancy issues for the fish -water and diversion flows. Secondly, the O&D continues the work on the Bradley Usage Audit to ensure the available capacity is accurately being accounted. The audit should be ready for review at the next BPMC meeting. Chair Izzo thanked the O&D Committee for reporting on their pending assignments. He reiterated the request that pending assignments for all committees are listed somehow during the meeting in order to provide continuity and to maintain relevance. 12. COMMITTEE REPORTS A. FY21 Budget to Actual Chair Izzo requested that Ms. Caldwell and Mr. Reisterer present the Budget to Actual Report. Ms. Caldwell informed that the included document reflects the period of July 1, 2020 through April 30, 2021. The actuals are under budget for almost all expense types. The primary line item drivers are lower than anticipated labor, contractual, supplies and materials, equipment, furniture and machinery. The total operations and maintenance expenses are under budget by approximately $900,000. Many of the budget line items do incorporate the 5-year work report referenced by Mr. Day. Ms. Caldwell discussed the importance that a budget represents both human resources and financial resources. She gave the example showing where labor was dedicated to the needle repair, which caused that labor resource to be unavailable for work on other projects, resulting in a reduction in the year-to-date expenses. Ms. Caldwell explained that Battle Creek is approximately $245,000 under budget for the period through April 30, 2021. This is primarily related to lower administrative costs. She noted that the 4% allocation of administrative costs from Bradley Lake has not yet been recorded, and will be recorded at year-end. The current expense amount is approximately $150,000. Additionally, the work that occurred from May until present that was discussed during the Operators Report is not reflected in the documented numbers. Mr. Burns requested that Ms. Caldwell highlight the issues or anomalies that she perceived this year and that the Committee should be focused on. Ms. Caldwell noted that she did not identify anything that stood out as odd. She explained that the budget is very conservative with the hope of being able to accomplish many of the items within the 5-year work report. She noted that some of the maintenance items cannot be accomplished during the winter period due to snow load or access issues, and subsequently, the budget during that period reflects lower maintenance expenditures. Ms. Caldwell anticipates a budget surplus at the end of the year that will be returned to the utilities. Ms. Caldwell discussed that the Budget Subcommittee was given a committee assignment at the last meeting to consider the possibility of using the FY21 anticipated surplus to help cover BPMC Minutes 6/25/21 Page 7 of 10 some of the cost of the needle repair. The Budget Subcommittee met and decided to recommend that the anticipated surplus is returned to the utilities and the needle repair is repaid over the four years, as budgeted. Mr. Reisterer confirmed that the Budget Subcommittee considered the committee assignment and unanimously agreed to maintain the budget and to pay into the R&C over four years. Mr. Burns asked if the budget includes anticipated spending or if the budget is cumulative. Ms. Caldwell explained that the budget is on an annual basis and is allocated over 12 months. The comparison is 1/12 each month compared to the actual activity, which would not occur on that timeframe. Mr. Borgeson expressed appreciation to the Budget Subcommittee for considering his thoughts about allocating the needle repair funding and the excess payments. He made an observation regarding the consistent experience of budget excesses each year, resulting in fairly significant sized refunds. Mr. Borgeson suggested the possibility of tightening the budgeting process in order to run the actuals closer to the budgeted amount. Mr. Thayer asked Ms. Caldwell about the new line item showing the IRS subsidy credit that offsets the debt service expenses. Ms. Caldwell explained that the total amount of IRS subsidy included in the budget is $1,089,419, which reduces the overall budget for FY22. B. GVEA Call Back Notice Ms. Caldwell discussed that staff requested assistance from PFM Financial Advisors to prepare the GVEA buy -in calculation for Battle Creek that is included in the packet. The most recent calculation results in an anticipated GVEA buy -in cost on June 1, 2022 at their 16.9% allocation participation amount of $1,883,993. Staff met with the Budget Subcommittee to discuss the supporting documents regarding the calculation. The conversation highlighted that a number of budgetary items from June 1, 2021 through June 1, 2022 are incorporated in the calculation and include budgeted O&M capital purchases and RNC repayments. The Budget Subcommittee acknowledged that the calculation is a good estimate. However, the Budget Subcommittee recommended that an updated calculation occur to reflect a more accurate buy -in time period and to use the actual numbers to true -up the final calculation. Mr. Reisterer expressed appreciation to Ms. Caldwell for the accurate overview. He discussed that the Budget Subcommittee reviewed Resolution 2017-02, and then reviewed the calculations. The reduction was not related to preconstruction costs. The revision was due to the IRS subsidy of the interest cost on the debt. He explained that the interim calculation is being presented today and the actuals will continue to change until June 2022. Mr. Reisterer noted that GVEA will be fully participating after June 2022. Mr. Burns expressed that his recollection is that the payment has to be made by May in order to participate in June. He requested clarification that the timing and process aligns appropriately. He stated that GVEA is prepared to move forward and appreciates the preliminary numbers. Ms. Caldwell confirmed that the resolution states that the payment is due May 2022, in advance of the June 1, 2022 water year. She believes that a preliminary payment will be made and then a final true -up will follow. Mr. Janorschke commented that he is thrilled that GVEA is finally buying into Battle Creek. He believes it is a great opportunity. Mr. Janorschke believes that staff and the Budget Subcommittee, particularly Sherri Highers, CEA, have done a fantastic job in making this a great BPMC Minutes 6/25/21 Page 8 of 10 project. He believes there are going to be additional opportunities in the future and would like possible modifications to the process that reflect appropriate risk and reward. Mr. Thibert commented on the process of transferring O&M dollars from Battle Creek to the BPMC during the period of time when not all members were participants. Since all members are now participants going forward, Mr. Thibert requested that the Committee revisit that process. Chair Izzo expressed support for changing that process. 13. COMMITTEE ASSIGNMENTS Chair Izzo assigned Mr. Gibson to work with the Budget Subcommittee on the .04 cent cap as it relates to excess payments used for project required work. Chair Izzo assigned the Budget Subcommittee to review insurance needs and deductibles. He noted that this assignment is a low priority and could be put in the queue to be discussed halfway through the fiscal year. Chair Izzo assigned Mr. Gibson to review the notional 4% reduction in O&M for non -participants of Battle Creek. Mr. Burns noted that the resolution indicates timing, but GVEA is prepared to participate immediately, if this proves to be a mutual benefit and in the best interest for the group. He noted if a different timing is advantageous to the process, GVEA could accelerate the timing. Mr. Gibson explained that he believes that the BPMC could change the process with a resolution at the July 30 meeting, so that GVEA would not have to wait to contribute their payment. This would alleviate the 4%. Mr. Gibson agreed to review the 4% structure and report back. Mr. Gibson requested clarification as to the water year start date. Chair Izzo noted the consensus is that the water year begins June 1. Mr. Gibson discussed that if the decision was made on July 30, the result would be GVEA's reconciliation of two months of the water year. Mr. Thibert suggested this issue is referred to the O&D Committee and the dispatcher for consideration. There is fuel involved and plans going forward that should be contemplated to understand possible ramifications. Chair Izzo agreed to the importance of reviewing possible implications of any actions. Chair Izzo additionally assigned the O&D Committee to review the consequences and impacts of GVEA beginning participation sooner. He requested the O&D Committee provide a recommendation at the next meeting. Mr. Patrick agreed to the assignment to review the possibility of GVEA participating in the current Battle Creek water year and to provide a recommendation at the next BPMC meeting. He believes that the biggest impact would be to HEA, but feels that it could be accommodated, if it is the will of the BPMC. Mr. Gibson articulated the assignment for the O&D Committee is to review the feasibility with respect to the water, to identify the operational impacts with respect to the fuel, and to examine the budget and financial impacts with respect to the 4% and $1.8 million transfer. Mr. Gibson indicated that he can participate on the legal side of the assignment to prepare a resolution of the Committee's recommendation. Chair Izzo informed that a strategic planning discussion will occur after the 5-year report is complete. The planning session will include the O&D Committee and the Finance Committee to determine what capital projects can be shepherded into the required project work on a forward - looking basis, as well as to review the bonding aspects and financial considerations. BPMC Minutes 6/25/21 Page 9 of 10 14. MEMBERS COMMENTS Mr. Borgeson expressed appreciation for all of the efforts. He feels like great progress is being made. He noted that Rob Montgomery, Seward, will assume greater responsibilities. Mr. Thibert stated that it is good to see more people around the table. He believes the in - person interaction is beneficial. He thanked Ms. Enkvist and the Finance Committee for their efforts on the insurance policy. Mr. Thibert expressed appreciation to Mr. Day and his team for their diligent work. Mr. Thayer expressed appreciation to the AEA team, especially to Mr. Carey, Tim Unidentified, Ms. Caldwell and Melissa Yang, for their efforts in acknowledging issues and outlining solutions for the Committee to consider. Mr. Burns expressed appreciation for participating in -person and echoed Mr. Thibert's comments. He thanked the committees for their dedication and work conducted behind the scenes. Mr. Burns commented that increasing insurance premiums are not enjoyable, and GVEA had to dedicate time to review their policies and deductibles during this rapidly changing environment. Mr. Janorschke echoed Mr. Burns' comments. He noted that this is the first in -person meeting he has attended in Anchorage in over a year. Mr. Janorschke commented that Tim Quirk is the Bradley operator who is retiring. He complimented his competence and his character. Mr. Janorschke noted that he is a valuable asset, who will be missed very much. Mr. Janorschke expressed congratulations on his retirement and appreciation for his service. Chair Izzo echoed members' comments. He noted that MEA has also experienced the insurance evaluation and renewal process. He thanked Ms. Enkvist for her efforts. Chair Izzo expressed appreciation to the AEA team and to Mr. Day and his team at Bradley Lake. 15. NEXT MEETING DATE - July 30, 2021 16. ADJOURNMENT The�Ibeinf rther business for the committee, the meeting adjourned at 11:33 a.m. I__ _ Curtis Thayer, Secretary BPMC Minutes 6/25/21 Page 10 of 10