HomeMy WebLinkAbout2020.05.29.BPMC.Executed.MinutesBRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC)
REGULAR MEETING
This meeting is via teleconference
May29,2020
1. CALL TO ORDER
Chair Izzo called the regular meeting of the Bradley Lake Hydroelectric Project Management
Committee to order at 10:00 am. A quorum was established.
2. ROLL CALL FOR COMMITTEE MEMBERS
Tony Izzo (Matanuska Electric Association [MEA]); John Burns (Golden Valley Electric Association
[GVEA]); Jeff Warner (Municipal Light and Power [ML&P]); Brian Hickey (Chugach Electric
Association [CEA]); Bradley Janorschke (Homer Electric Association [HEA]); Curtis Thayer (AEA);
and John Foutz (City of Seward).
3. PUBLIC ROLL CALL
Bryan Carey, Michele Hope, David Lockard, Beazit Redzepi, Kirk Warren (AEA); Aimee Sudbeck
(AIDEA); Sherri Higher, Russell Thornton (CEA); Max Garner, Stefan Saldanha (Department of Law);
Bob Day (Bradley Lake - HEA); Ron Rebenitsch (Energy Engineering); Ron Woolf (GVEA); Emily
Hutchison, Larry Jorgenson, Andy Patrick (HEA); Kirk Gibson (McDowell Rackner Gibson, PC);
David Pease, Tony Zellers (MEA); Bernie Smith (Public); Unidentified Speaker (RCA); and Robert
Irvich (sp).
4. PUBLIC COMMENTS - None
S. AGENDA APPROVAL
MOTION: A motion was made by Mr. Thayer to approve the agenda. Motion seconded by Mr.
Warner.
A roll call vote was taken, and the motion to approve the agenda passed unanimously.
6. NEW BUSINESS
A. Resolution on Bradley Project Power Optimization
Mr. Thayer explained the purpose of the resolution is for BPMC to reaffirm their longstanding
commitment to assure electric consumers and potential lenders the BPMC operates Bradley Lake to
maximize the benefits provided by the energy generated by the Bradley Lake project.
MOTION: A motion was made by Mr. Thayer to approve Resolution 20.01, entitled
Optimization of the Bradley Lake Project. Motion seconded by Mr. Warner.
A roll call was taken and the motion to approve Resolution 20-01 passed unanimously.
BPMC Meeting Minutes, May 29, 2020 Page 1 of 3
OLD BUSINESS
A. Battle Creek Project update
Bryan Carey, AEA, reviewed the provided West Fork Upper Battle Creek Update, dated May 29,
2020. The contractor is making progress on the fusing of the pipe. The project remains on schedule
for the substantial completion date of July 22, 2020. The original construction contract was about
$36 million. The contract change orders have been about $72,000 to -date. Additional significant
change orders are expected in the next month. The change order for the wire is expected to be in
the range of $400,000 to $500,000. Mr. Carey described the pictures included in the update.
Chair Izzo asked for the approximate dates the photos were taken. Mr. Carey informed the photos
were taken by drone on May 17, 2020.
B. Operators Report
Mr. Day reviewed the Bradley Lake Operators Report included in the packet. The lake level is a little
above average levels, but within margins. This year's budget will see impacts from COVID-19, due to
the planned and funded work that was unable to be accomplished. Modifications to next year's
budget are likely to try and recapture some of the work postponed. The unit availability has been
good and running consistently. Damage to the incinerator building door and trim by a bear has
been repaired. The bear was probably after garbage and garbage will now be incinerated during the
day and not left overnight. There were no questions.
C. O&D Report
Mr. Burns informed Pete Sarauer submitted the 0&D Report to members within the packet. Mr,
Burns communicated from Mr. Sarauer the only real substantive change was to transfer the ABB
bond holder for Dave's Creek and Soldotna SVC's from CEA to AEA to better reflect that Bradley
Project owns these assets. There were no questions.
8. COMMITTEE REPORTS - Budget to Actual
Beazit Redzepi, AEA, delivered the Budget to Actual Expense Report from July 1, 2019 to February
29, 2020. The capital purchases not funded by R&C Fund actuals are $283,425. Mr. Redzepi
reviewed Operations and Maintenance Schedule B. The overall expenses through February 29,
2020 are $2,829,488. Based on the percentage of the timing, the budget is under by $737,873. Mr.
Redzepi discussed the capital projects funded by the R&C Fund listed in Schedule D. He highlighted
some of the projects that most likely will not be completed due to COVID-19. Mr. Redzepi discussed
the Battle Creek capital purchases listed on Schedule E and the Battle Creek administrative
expenses outlined on Schedule F. There were no questions.
MOTION: A motion was made by Mr. Hickey to enter into Executive Session to discuss
confidential matters related to Battle Creek claims and the S/Q Line. Motion seconded by Mr.
Burns.
The motion passed with no objection.
9. EXECUTIVE SESSION:10:24am
Discuss confidential matters related to Battle Creek claims and S/Q Line
The Committee reconvened its regular meeting at 12:15 p.m.
BPMC Meeting Minutes, May 29, 2020 Page 2 of 3
Mr. Foutz requested to make his member comments now and then depart for another meeting.
There was no objection. Mr. Foutz reported this will be his last meeting in this capacity. He has
accepted a new position. Mr. Foutz expressed appreciation to all involved with the Committee. It
has been his honor to participate in the meetings and a blessing to get to know members.
10. COMMITTEE ASSIGNMENTS
Chair Izzo assigned the 0&D Committee to perform a formal economic analysis and opine on the
consistency of the proposed transaction, i.e., purchase of transmission capacity, purchase of S/Q
Line and future upgrades with national standards for the industry and to prepare a report, and for
the purposes of addressing the Department of Law's opinion determining the proposed transaction
is required work. Counsel for the BPMC shall assist the 0&D Committee as needed. Chair Izzo
requested Mr. Gibson send the verbiage of the assignment to Mr. Sarauer. Mr. Gibson agreed.
11. MEMBERS COMMENTS
Mr. Hickey expressed appreciation to Mr. Carey, Max Garner, Department of Law, and Ron
Rebenitsch, Energy Engineering, for facilitating a position to negotiate and quickly resolve issues.
Mr. Warner echoed Mr. Hickey's comments and added appreciation to Aimee Sudbeck, AIDEA, for
her efforts during today's meeting.
Mr. Thayer expressed appreciation for the guidance given today. He hopes to keep the S/Q Line
moving forward with the signatures.
Mr. Janorschke echoed previous comments. He formally stated his dislike of teleconference
meetings, but understands the current need during the pandemic. Mr. Janorschke complimented
the Chair on facilitating the meeting today.
Chair Izzo echoed previous comments, and noted he will follow-up and congratulate Mr. Foutz on
his new endeavors. Chair Izzo thanked AEA for recognizing that other people's money gets spent as
co-ops and municipalities. Chair Izzo expressed appreciation to Mr. Carey, Stefan Saldanha,
Department of Law, Mr. Gibson, and the AEA team for their efforts on the S/Q Line and Battle Creek.
12. NEXT MEETING DATE - The next meeting date is June 30, 2020.
13. ADJOURNMENT
There being no further �usiness for the committee, the meeting adjourned at 12:27 pm.
BY: _ I
Tony Izzo,
Attest:
Alaska Energy Authority, Secretary
BPMC Meeting Minutes, May 29, 2020 Page 3 of 3