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HomeMy WebLinkAbout2020.06.30.BPMC.ExecutedMinutesBRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) DRAFT MEETING MINUTES This meeting is via teleconference June 30, 2020 CALL TO ORDER ALASKA ENERGY AUTHORITY Chair Izzo called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:04 am. A quorum was established. 2. ROLL CALL FOR COMMITTEE MEMBERS Tony Izzo (Matanuska Electric Association [MEA]); John Burns (Golden Valley Electric Association [GVEA]); Anna Henderson (Municipal Light and Power [ML&P]); Lee Thibert (Chugach Electric Association [CEA]); Bradley Janorschke (Homer Electric Association [HEA]); Curtis Thayer (AEA); and Pat Gillis (City of Seward). 3. PUBLIC ROLL CALL Betty Caudle (Accu-Type Depositions); Bryan Carey, Ryan Garner, David Lockard, Beazit Redzepi, Kirk Warren (AEA); Aimee Sudbeck (AIDEA); Crystal Enkvist (Alaska Power Association and ARECA Insurance Exchange); Don Maynor (ARECA Insurance Exchange); Amy Fenerty (Aldrich CPA); Brian Hickey, Sherri Higher, Russell Thornton (CEA); Max Garner, Stefan Saldanha (Department of Law); Bob Day (Bradley Lake - HEA); Andy Patrick (HEA); Ron Rebenitsch (Energy Engineering); Pete Sarauer, Ron Woolf (GVEA); Larry Jorgenson, Andy Patrick (HEA); Kirk Gibson (McDowell Rackner Gibson, PC); David Pease, Tony Zellers (MEA); Jeff Warner (ML&P); and Christina Hunter (RCA). 4. PUBLIC COMMENTS - None 5. AGENDA APPROVAL MOTION: A motion was made by Mr. Thayer to approve the agenda. Motion seconded by Mr. Janorschke. A roll call vote was taken, and the motion to approve the agenda passed unanimously. 6. APPROVAL OF PRIOR MINUTES - March 27 and May 29, 2020 MOTION: A motion was made by Mr. Thayer to approve the Minutes of March 27, 2020. Motion seconded by Mr. Thibert. A roll call vote was taken, and the motion to approve the Minutes of March 27, 2020 passed unanimously. • • 813 West Northern Lights Boulevard, Anchorage, Alaska 99503 T 907.771.3000 Toll Free 888.300.8534 F 907.771.3044 7. NEW BUSINESS Chair Izzo confirmed the Committee members have received a letter from the City of Seward City Manager informing John Foutz has recently left employment and Patrick Gillis is now the BPMC representative until further direction. Chair Izzo welcomed Mr. Gillis to the Committee. A. Motion: Funding Battle Creek Diversion Project Mr. Thayer explained the continuing funding for Battle Creek Diversion Project MOTION: A motion was made by Mr. Thayer for the BPMC to direct AEA to proceed with additional funding for the completion and overages of the Battle Creek Diversion Project using 9 Series 2017 taxable draw -down bonds. AEA will request on the bond based on the contractor's payment schedule. The bond can provide funding up to $5,761,000. the participating utilities will fund a capital reserve with each draw of the bond in accordance with the Bradley Lake bond resolution. The bond principal, interest, related costs, and reserve requirements shall be paid by the utilities participating in the development of the Battle Creek Diversion Project at the following percentages: CEA 38.38%; HEA 41.44%; MEA 17.88%; and City of Seward 1.3%. Motion seconded by Mr. Janorschke. A roll call was taken and the motion to approve funding for Battle Creek Diversion Project as stated passed, with GVEA and AEA abstaining. Kirk Gibson, McDowell Rackner Gibson, PC, confirmed the previous motion was approved. B. Motion: FY21 Bradley Budget Amendment Chair Izzo requested Beazit Redzepi, AEA, give the presentation. The online information was incorrectly placed under Item 6B. Committee members confirmed receipt of the amendment document. Mr. Redzepi reviewed and discussed the proposed changes to the FY21 Budget. MOTION: A motion was made by Mr. Burns to approve BY21 Bradley Budget Amendment. Motion seconded by Mr. Janorschke. Mr. Redzepi indicated the information includes the capital reserve requirement and the debt service for the 9 Series funding previously approved. A roll call was taken and the motion to approve FY21 Bradley Budget Amendment passed unanimously. 8. OLD BUSINESS A. Battle Creek Project Update Bryan Carey, AEA, discussed the progress on the Battle Creek Project. The fusion work has been completed and the machines will be shipped out. The pipe has been laid up to the diversion dam. Work is ongoing to connect the pipe in the transition area. The dam is about 99% complete. The contractor expects to meet the substantial completion date and final completion date of July Alaska Energy Authority Page 2 of 4 22, and August, 31, 2020, respectively. The budget and contingency budget are within original parameters. Mr. Carey described the photos included in the presentation. Chair Izzo asked if Ron Rebenitsch, Energy Engineering, wished to provide comment. Mr. Rebenitsch informed he will provide comments during executive session. B. Operators Report Chair Izzo introduced Bob Day, Bradley Lake - HEA, to review the Bradley Lake Operators Report, which was inadvertently excluded from the physical packet. Mr. Day informed the report was provided electronically. The statistics have remained consistent during the last four months. The lake level inflows for June have remained low. Mr. Day discussed impacts to the budget due to COVID-19, in terms of carry-over or lag of budget items. Work with the Budget Subcommittee will continue to address timing modifications. Mr. Day reviewed other identified task delays due to COVID-19. Chair Izzo requested the carry-over items in the budget are segregated and specifically identified for the Committee. C. O&D Report Chair Izzo introduced Pete Sarauer, GVEA, to present the O&D Report, Mr. Sarauer informed the O&D Committee met earlier in the month and was tasked by the BPMC to discuss the SO and SS Line purchase proposal, including an economic evaluation. The O&D Committee discussed the approach, methodology, and tasks needed in order to complete the evaluation. A draft resolution is being prepared and will be reviewed by Mr. Gibson. The intent is for the O&D Committee to review the draft resolution at their meeting on July 17, and subsequently forward the resolution to the BPMC. Mr. Sarauer discussed the proposal from Russell Thornton, CEA, and Larry Jorgenson, HEA, to consolidate the water tracking spreadsheets. Mr. Sarauer informed the previous reports by Mr. Day and Mr. Carey were reviewed at the meeting. The O&D Committee has resumed in -person meetings and maintains the ability to provide a video-conferencing option, as necessary. 9. COMMITTEE REPORTS - Budget to Actual Mr. Redzepi delivered the Budget to Actual Expense Report. The capital purchases to -date is $281,425. Mr. Redzepi reviewed Operations and Maintenance expenses on Schedule B. The overall expenses to -date total $3,204,318. The surplus is currently estimated at $808,968. Mr. Redzepi discussed the capital projects funded by the R&C Fund, with expenses at $182,730. The Battle Creek capital purchases listed on Schedule E total $646,770. The Battle Creek administrative expenses outlined on Schedule F total $404,912. There were no questions. MOTION: A motion was made by Mr. Thayer to enter into Executive Session to discuss confidential matters related to Battle Creek claims and the S/Q Line. Motion seconded by Mr. Burns. A roll call vote was taken and the motion to enter Executive Session passed unanimously Alaska Energy Authority Page 3 of 4 10. EXECUTIVE SESSION: 10:45 am Discuss confidential matters related to Battle Creek Claims and S/Q Line The Committee reconvened its regular meeting at 11:52 a.m. Chair Izzo advised the BPMC did not take any formal actions on matters discussed while in executive session. 11. COMMITTEE ASSIGNMENTS Chair Izzo assigned the Budget Committee to assist in the review of the debt financing terms and conditions of the S/Q Line. Chair Izzo assigned the O&D Committee to prioritize and work with David Lockard, AEA, on the right-of-way width as soon possible. Chair Izzo requested Mr. Burns communicate the directive to Mr. Sarauer. Mr. Burns agreed. 12. MEMBERS COMMENTS Mr. Burns expressed appreciation for the discussion regarding the S/Q financing terms and clarification. Mr. Thayer thanked Mr. Gibson and others who have been working diligently on the S/Q Line transaction. Mr. Gillis expressed appreciation for the kind welcome. Chair Izzo echoed Mr. Thayer's comments and again welcomed Mr. Gillis to the BPMC. Chair Izzo thanked AEA for their efforts. 13. NEXT MEETING DATE - The next meeting date is Friday July 24, 2020. 14. ADJOURNMENT There being no further business for the committee, the meeting adjourned at 11:56 am. BY: Tony Izzo, Chair Attest: Alaska Energy Authority, Secretary Alaska Energy Authority Page 4 of 4 Mr. Thayer thanked everyone for cooperation on the S/Q Line, especially Mr. Gibson for his intermediary role. He expressed congratulations on the officers' reelection. Vice -Chair Thibert expressed appreciation to the Finance Committee, and especially Mr. Thayer for his assistance in navigating the changes. Mr. Earnhardt thanked everyone for their patience while he learns this new conferencing system. He looks forward to working with the members. Mr. Janorschke echoed previous comments of appreciation. He brought attention to the diligent efforts of Mr. Day and Ron Rebenitsch, Energy Engineering, bringing Battle Creek online. He thanked Chair Izzo for facilitating this complicated teleconference meeting. Chair Izzo echoed all of the well -deserved thanks, and especially to Ms. Siverson and Aimee Sudbeck. He welcomed Mr. Earnhardt to the BPMC. 13. NEXT MEETING DATE - The next meeting date is Friday, September 25, 2020. 14. ADJOURNMENT There being no further business for the committee, the meeting adjourned at 1:19 pm. BY Tor Attr Alaska Energy Authority, Secretary Alaska Energy Authority Page 8 of 8