HomeMy WebLinkAbout2020.09.11.BPMC.ExecutedMinutesBRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC)
SPECIAL MEETING AGENDA
This meeting is via teleconference
September 11, 2020
1. CALL TO ORDER
Chair Izzo called the special 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]) (phone); Anna Henderson (Municipal Light and Power [ML&P]) (phone);
Lee Thibert (Chugach Electric Association [CEA]) (phone); Bradley Janorschke (Homer Electric
Association [HEA]) (phone); and Curtis Thayer (Alaska Energy Authority [AEA]).
3. PUBLIC ROLL CALL
Brenda Applegate, Jennifer Bertolini, Bryan Carey, Robert Hawkins, Beazit Redzepi, Aimee
Sudbeck, Kirk Warren (AEA); Alyssa Wilson (AIDEA); Bob Day (phone) (Bradley Lake - HEA);
Sherri Highers (phone), Russell Thornton (phone) (CEA); Patrick Gillis (City of Seward) (phone -
arrived late); Stefan Saldanha (phone) (Department of Law); Nathan Minnema (phone), Pete
Sarauer (phone), Ron Woolf (phone) (GVEA); Andy Patrick (phone) (HEA); Kirk Gibson (phone)
(McDowell Rackner Gibson, PC); David Pease (phone - arrived late); Matt Reisterer (phone)
(MEA), and Christine Hunter (phone) (RCA).
4. PUBLIC COMMENTS
None.
5. AGENDA APPROVAL
MOTION: A motion was made by Mr. Thayer to approve the agenda. Motion seconded by
Vice -Chair Thibert.
Mr. Thayer requested to amend the agenda and move Item 10. Executive Session to after Item
6. Prior Minutes. Vice -Chair Thibert had no objection. There was no objection.
A roll call vote was taken, and the motion to approve the agenda as amended to move
Item 10. after Item 6. passed unanimously.
6. PRIOR MINUTES - n/a
MOTION: A motion was made by Mr. Janorschke to enter into Executive Session to
discuss confidential matters related to Bradley Lake/Battle Creek. Motion seconded by
Mr. Thayer.
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A roll call vote was taken and the motion to enter Executive Session passed
unanimously.
10. EXECUTIVE SESSION: 10:30 am
Discuss confidential matters related to Bradley Lake/Battle Creek
The Committee reconvened its regular meeting at 11:21 a.m.
Chair Izzo advised the BPMC did not take any formal actions on matters discussed while in
executive session.
7. NEW BUSINESS
A. Budget Amendment Recommendation
MOTION: A motion was made by Vice -Chair Thibert to authorize, 1) to utilize $3.3 million
from the Renewal & Contingency Fund for Battle Creek costs, 2) to approve an $825,000
budget amendment, 3) to have a cash call of $750,000. The cash call will be paid by all
member utilities of the BPMC at the respective percentage shares. Golden Valley
Electrical Association and Municipal Light & Power expressly understand and approve
the amounts from the Renewal & Contingency Fund, and the cash call to be used to pay
Battle Creek Diversion Project costs and recognize such costs will be allocated between
participating purchasers and non -participating purchasers at a later date this fiscal year.
Motion seconded by Mr. Thayer.
Chair Izzo requested the Chair of the Budget Subcommittee, Sherri Highers, CEA
representative, discuss the budget amendment recommendation. Ms. Highers stated she is not
Chair of the Budget Subcommittee and noted Ron Woolf, GVEA, is on the line and should
answer. Mr. Burns advised Mr. Woolf is no longer on the line. Mr. Burns requested Ms. Highers
comment. Mr. Highers discussed the Budget Subcommittee met and in lieu of utilizing the 9tn
Series Bonds to fund the remaining costs of Battle Creek, the Budget Subcommittee suggested
temporarily utilizing the RNC Fund to fund the Battle Creek costs until the known constructions
costs are finalized. A future decision can be made regarding what funding source will be used
for the remaining costs, including the possibility of reimbursing the RNC Fund with the 9th Series
Bonds or continuing to utilize the RNC Fund.
Vice -Chair Thibert informed he and Ms. Henderson had a discussion during the break. One of
the idiosyncrasies of CEA acquiring ML&P is the agreement between ML&P and HEA to take
the Battle Creek share from HEA. The issue arose regarding the possibility of a reimbursement
to the RNC Fund that CEA would be looking for reimbursement from HEA on ML&P's share of
the RNC Fund refund mechanism. Vice -Chair Thibert asked Mr. Janorschke if he agrees with
that assessment. Mr. Janorschke agreed.
Ms. Henderson commented on the objective to leave enough money in the RNC Fund for the
needle replacement, which is estimated at $700,000. She requested response from Bob Day,
HEA, if that is consistent with their project repair estimates for this year. Ms. Henderson noted
the repairs will not alter her opinion on the motion. The information is for clarity of expectations.
Mr. Day explained the $700,000 is an out -of -the -air estimate. Five years ago, the needles were
rebuilt for a cost of $850,000. He does not believe any of the hard bushings need to be
replaced this time, which would lower the cost of materials. Mr. Day believes $700,000 is a very
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reasonable estimate at this time. Budget revisions would only need to be made if unexpected
circumstances occurred during the replacement process.
Vice -Chair Thibert asked Mr. Day when he expects the needle repair to be completed. Mr. Day
indicated the materials are in the process of being obtained. The anticipation is the needle
repairs will occur in November and December, with completion before the first of the new year.
The intent is to minimize spill as much as possible.
Chair Izzo asked Mr. Day if the O&D Committee is working on the estimate for the needle
repairs. Mr. Day informed the O&D Committee was scheduled to meet at 9:00 today to discuss
the needle repairs. However, because this BPMC emergency meeting was scheduled, the O&D
Committee meeting was postponed to this afternoon. Mr. Day indicated the O&D Committee
should have additional information at the BPMC meeting on the 25th
A roll call vote was taken, and the motion to authorize, 1) to utilize $3.3 million from the
Renewal & Contingency Fund for Battle Creek costs, 2) to approve an $825,000 budget
amendment, 3) to have a cash call of $750,000. The cash call will be paid by all member
utilities of the BPMC at the respective percentage shares. Golden Valley Electrical
Association and Municipal Light & Power expressly understand and approve the
amounts from the Renewal & Contingency Fund, and the cash call to be used to pay
Battle Creek Diversion Project costs and recognize such costs will be allocated between
participating purchasers and non -participating purchasers at a later date this fiscal year
passed unanimously.
11. COMMITTEE ASSIGNMENTS
Chair Izzo reiterated the O&D Committee is reviewing the cost of the needle replacement.
Chair Izzo requested Pete Sarauer, GVEA, discuss the status of Bradley Lake operations
concerning the needle replacement at the September 25th BPMC meeting.
12. MEMBERS COMMENTS
Ms. Henderson expressed appreciation to the Budget Subcommittee for their efforts in creating
a reasonable proposal.
Vice -Chair Thibert expressed appreciation to the Budget Subcommittee, Chair Izzo, and AEA
for organizing the meeting.
Mr. Janorschke echoed the previous comments.
Chair Izzo informed he just remembered the Committee had decided while in executive session
to take action on the confidential settlement discussion. He requested Counsel provide
clarification regarding the ability to take action after member comments are finished.
Chair Izzo thanked AEA. He attended the recent valve turning event and was highly impressed
with the quality of the work and professionalism of both AEA and HEA. He is proud of the
addition to the facility.
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Kirk Gibson, McDowell Rackner Gibson, characterized any action on the settlement as an
addendum to the executive session. He believes the Chair can ask for a motion regarding
accepting the settlement discussions that occurred during executive session.
MOTION: A motion was made by Mr. Janorschke to accept the settlement as discussed
in executive session as it relates to Battle Creek. Motion seconded by Mr. Thayer.
A roll call vote was taken, and the motion to accept the settlement as discussed in
executive session as it relates to Battle Creek passed unanimously.
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.
BY:
Tom
Atte
Alaska Energy Authority, Secretary
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