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HomeMy WebLinkAboutIMC 12-28-16yoCON Intertie Management Committee Resolution No.16-1 Approval of the Douglas Substation Improvements,Utility Memorandum of Agreement for 2016 Douglas Substation Improvements (MOA),and Final Design and Budget for t!mprovements WHEREAS,Matanuska Electric Association,Inc.(MEA)has proposed certain upgrades and modifications to the Douglas Substation,including the manufacture and installation of a new Control Enclosure (Improvements).The Intertie Management Committee (IMC)determined that these Improvements are necessary to provide for the continued safe,reliable,and economical operation of the Alaska !ntertie. WHEREAS,the proposed MOA (attached)provides for the Alaska Energy Authority (AEA)to procure and deliver the Control Enclosure,and MEA to provide construction at Douglas Substation necessary for its installation.The proposed scope of work and estimated project cost is further reflected in the Final Design (circulated by MEA)and theBudget dated November 21,-December-2016 (attached).This MOA includes a LEASE which provides for the right to access and use the footprint of the Control Enclosure within the Douglas Substation for 45 years.See Appendix B to MOA. . WHEREAS,the 1984 Douglas Substation Agreement allows AEA and the IMC to use assets within the Douglas Substation needed to transmit power over the Alaska Intertie.The 1984 Douglas Substation Agreement will expire in 2019 unless extended.MEA anticipates negotiations over future use of the Douglas Substation to occur within three years.Until those negotiations conclude,terms for future use of these assets for Intertie purposes after the 1984 Douglas Substation Agreement expires remain uncertain.Continued operation of the Alaska Intertie through the Douglas Substation beyond 2019,may require an agreement to extend or replace the 1984 Douglas Substation Agreement. WHEREAS,before investing State monies on a Contro!Enclosure to be placed in the Douglas Substation and the project to proceed using State monies,AEA requires the IMC to pass a Resolution providing that the:(1)IMC Participants acknowledge that issues could arise when the Douglas Substation Agreement expires;(2)IMC Participants agree they are committed to negotiating and implementing a suitable extension or replacement of the 1984 Page 1 of 2 -Intertie Management Committee Resolution No.16-1 Douglas Substation Agreement,and (3)IMC Participants assume all risks associated with future negotiations with MEA. NOW,THEREFORE,IT IS RESOLVED THAT: SECTION 1.The IMC Participants:(a)acknowledge that issues could arise when the Douglas Substation Agreement expires;(b)the IMC Participants agree they are committed to negotiating and implementing a suitable extension or replacement of the Douglas Substation Agreement,and (c)the IMC Participants assume all risks associated with future negotiations with MEA. SECTION 2.The IMC approves the MOA attached to this Resolution. SECTION 3.The IMC approves Final Design (circulated by MEA)and the Budget dated November 21,2016 (copy attached to this Resolution)Deeember--2646-for the 2016 Douglas Substation Upgrade Projecttattachedto-this_Resolution). SECTION 4.In accordance with Section 6.4.3 of the Second Amended and Restated Alaska Intertie Agreement,the responsibility for the costs of the Improvements (i.e.,over the amounts advanced by AEA from State monies)shall be shared at the following percentages: IMC Participants (including MEA)___%;MEA ___%.The IMC Participant's portion of the Improvements shall be recovered under the following allocation:Energy Rate __%;Capacity Rate_%. Dated at Anchorage,Alaska,this 2844"day of December,2016 Chair Secretary Page 2 of 2 -Intertie Management Committee Resolution No.16-1 x Intertie Management CommitteeosResolutionNo.16-1 Approving Approval of the Douglas Substation Improvements,Utility Memorandum of Agreement (MOA}for 2016 Douglas Substation Upgrades,Improvements (MOA),and Final Design and Budget for Improvements WHEREAS,Matanuska Electric Association,Inc.(MEA)has proposed certain upgrades and modifications to the Douglas Substation,including the manufacture and installation of a new Control Enclosure-(Improvements).The Intertie Management Committee (IMC)determined that these Deuglas-Substation-upgrades-and-_modificationsimprovements are necessary to jnsureprovide for the continued safe,reliable,and economical operation of the Alaska Intertie. WHEREAS,the proposed Utiity-Memorandum-ofAgreement{MOA}2016 Deuglas Substation Upgrades (attached)provides for the Alaska Energy Authority (AEA)to procure and deliver the Control Enclosure,and MEA to provide construction at Douglas Substation necessary for its installation.The proposed scope of work and estimated project cost is further reflected in the Final Design and Budget dated __December,2016 (attached).This MOA alseincludes a LEASE which provides for the right to access and use the footprint of the Control Enclosure within the Douglas Substation for 45 years.See Appendix B to MOA. WHEREAS,the 1984 Douglas Substation Agreement allows AEA and the IMC to use assets within the Douglas Substation needed to transmit power over the Alaska Intertie.The_1984 Douglas Substation Agreement will expire in 2019 unless extended.MEA anticipates negotiations over future use of the Douglas Substation to occur within three years.Until those negotiations conclude,terms for future use of these assets for Intertie purposes after the 1984 Douglas Substation Agreement expires remain uncertain.Continued operation of the Alaska Intertie through the Douglas Substation beyond 2019,wilmay require an agreement to extend or replace the 1984 Douglas Substation Agreement. WHEREAS,before investing State monies on a sentretenclesureControl Enclosure to be placed in the Douglas Substation-AEA+equirestheIMCresolutionnecessaryfor and the project to proceed using State monies,AEA requires the IMC to pass a Resolution providing that the:(1) the-IMC UttitiesParticipants acknowledge that issues could arise when the Douglas Substation Agreement expires;;(2)the-IMC UttittesParticipants agree they are committed to negotiating and Page 1 of 2 -Intertie Management Committee Resolution No.16-1 implementing a suitable extension or replacement of the 1984 Douglas Substation Agreement, and (3)IMC UtiitiesParticipants assume all risks associated with future negotiations with MEA. NOW,THEREFORE,IT IS RESOLVED THAT: SectieASECTION 1.The IMC UtititiesParticipants:(a)acknowledge that issues could arise when the Douglas Substation Agreement expires,;(b)the IMC UttitiesParticipants agree they are committed to negotiating and implementing a suitable extension or replacement of the Douglas Substation Agreement,and (c)the IMC UttittesParticipants assume all risks associated with future negotiations with MEA. SectionSECTION 2.The IMC approves the UtiityMemorandumofAgreement{MOA) 2016-DOUGLAS SUBSTAHONUPGRADES attached to this Resolution. SecsteASECTION 3.The IMC approves Final Design and Budget dated December __, 2016,for the 2016 Douglas Substation Upgrade Project-(attached to this Resolution). SECTION 4.In accordance with Section 6.4.3 of the Second Amended and Restated Alaska Intertie Agreement,the responsibility for the costs of the Improvements (i.e.,over the amounts advanced by AEA from State monies)shall be shared at the following percentages:IMC Participants (including MEA)%:.MEA %.The IMC Participant's portion of the Improvements shall be recovered under the following allocation:Energy Rate %:Capacity Rate %. Dated at Anchorage,Alaska,this 14"day of December,2016 Chair Secretary Page 2 of 2 -Intertie Management Committee Resolution No.16-1 Matanuska Electric Assocation,Inc. Douglas Substation Budgetary Estimate MEA W.O.EN16-3.2 Engineer's Budgetary Estimate Summary Extended Extended Item Contractor Contractor Extended Extended Description Labor Material OFM Total (GROUP F:FOUNDATIONS -_____-37,949,27,274||___65,223| DISTRIBUTION |8,285 |8,362 16,647|i_TRANSMISSION |_29,664 |18,912 i 48,576| _GROUP G:STATION SERVICE TRANSFORMERS :11,200 300,7,680'19,180 __DISTRIBUTION 5,600 150)3,840'9,590|_TRANSMISSION _ 5,600 150!3,840 |9,590 {GROUPI:RETIREMENT - -25,920 |nee [28,920 DISTRIBUTION 12,960 oy 1 12,960;TRANSMISSION 12,960 nl 12,960 | [GROUP K:CONDUIT AND CABLE "119,653|86,232)|__205,885| |DISTRIBUTION oe -|48,006]33,899 - 81,904 |TRANSMISSION |71,647 52,333 123,980| (GROUP M:SITE WORK 5,227 |dt _5,227| DISTRIBUTION ;.tl 2,643:a 2,613TRANSMISSION2,613 [_-L -_L 2,613 [GROUP O:GROUNDING -i:T8255 14,967 i 23,221]|_DISTRIBUTION -_4,127 7,483 |14,611|_TRANSMISSION oe 4,127 7,483[L 11,611| |GROUP P:CONTROL ENCLOSURE oo 36,000 5,000,-_-=s-713,120 =-T5420][DISTRIBUTION _-_ 10,800 1,500 213,936 __226,236[_TRANSMISSION 25,200 ____3,500 499,184 527,884 oo Subtotal 244,203"«133,772 720,800 _4 098,776 L _ 7 _Mobilization/Demobilizationoo '5,000. :Heated Equipment Storage (0.5%)_5,494 -__Project Management (3%)_-_32,963, _ee Engineering |161,042, Jo a __Testing &Commissioning|_50,000 Po ._Contingency (10%)|_-_-37,798. ne Construction Management|_65,000, eee _..Construction Engineering;_55,000 oo Survey |_-s--14,576. _____Geotechnical |_18,400. Relay Settings -.20,000 L -__CutoverPlan -s_-3,344 rs an -;Subtotal 1,567,392 L - ..Performance Bond __13,837, L Total Estimate _1,581,229 11/21/2016 Client: Project Code: Desc: Type: Base Currency: Clectric Power Systems Consulting Engineers Matanuska Electric Association,Inc. MEA W.O.EN16-3.2 Douglas Substation Control Enclosure Replacement Engineer's Budgetary Estimate Summary Budgetary US Dollars Estimate Summary Extended Total Control Enclosure:|$713,120 Transmission:S 575,748 Distribution:S 292,361 Total Estimate:S 1,581,229 Cover Sheet 11/21/2016 Intertie Management Committee Meeting -Alaska Online Public Notices Page 1 of 1 STATUS:Archived Intertie Management Committee Meeting ALASKA ENERGY AUTHORITY Annual Meeting Intertie Management Committee The Intertie Management Committee will hold a meeting on Wednesday,December 28,2016 at 9:30 a.m.For additional information contact Teri Webster at (907)771-3074. This meeting will be conducted by electronic media pursuant to AS 44.83.040(b)and AS 44.62.310 at the following location: Alaska Energy Authority Board Conference Room 813 West Northern Lights Boulevard Anchorage,Alaska A teleconference line has been set up for those unable to attend in person.Dial 1-888-585-9008,Enter conference room 573-995-928. The public is invited to attend.The State of Alaska (AEA)complies with Title Il of the Americans with Disabilities Act of 1990.Disabled persons requiring special modifications to participate should contact AEA staff at (907) 771-3074 to make arrangements. Attachments,History,Details Attachments Details IMC Agenda 12-28.pdf Commerce,Community andDepartment:Economic Development Revision History Category:Public Notices Created 12/14/2016 2:52:21 PM by Sub-Category: jstacruz Location(s):Statewide Modified 12/14/2016 2:53:57 PM by [Details]Project/Regulation #: jstacruz Modified 12/16/2016 2:15:29 PM by [Details]Publish Date:12/14/2016 jstacruz Archive Date:12/29/2016 Events/Deadlines: https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=1 83921 1/6/2017 apaélle Scheduling meetings Executive Assistant Desk Duties while |am on vacation Jt 2 y #"A KMakesureyouhavetheseemployeestoyouroutlookcalendar:Sean,Kirk,Amy,Katie,Cady,Kris,Jennifer H.and you can view their details.f , When scheduling a meeting just put it on your calendar and send it out even though you aren't attending the meeting.Loom can be m TO field P Fiscal Note Training Micaela Fowler (DCCED Legislative Liaison 907-465-2503)will be holding a training course soon.When she announces the date please let her know we want the following people'o attend:dwa_to US-Katie,Amy,Brenda,Sean,Salina,Jen Bride,Katherine BealeseArp,Brisa,SP 4 eB IMC meeting,Wednesday,Dec 28""yen Use,rrurntta 'Taner did chuadky-Send out email Friday,12/23 to all IMC representatives asking for MOA updates to present at the meeting. Once you have all documents (if any),email them out to IMC group on Tuesday,Dec 27 Make copies for meeting Do normal prep work for the meeting.I would like both of you to attend for help/support. Record both ways for the meeting (system plus through the phone). Find out from the Chair,Mark Johnston,when he wants to have the next meeting.Jan or Feb. Schedule next IMC meeting Aud out @ i2[2%Whe,ark Marck.if tan on4beeothub\ivew (EL. Contact the utilities general manager's assistant to find a date/time that will work for everyone.Contacts in"Meeting Instructions”book on my desk.,pelestel FO Dove lew Suost.e ey ae,nel be Ayo ne mn for vel lade IMC -Whatever month Mark told you was he preference.Shoot for the end of the month. BPMC I will work on this when I return. L BPMC signed minutes (anelhke Hick.: 7 Board Meeting,Wed.Jan 11 Once Michael signs the minutes (currently in his office),create a pdf and send them out to the BPMC group. Agenda MUST be posted no later than 1/4.I will be back but I need it to be ready. We already know what we will be covering except please verify with Michael if there will be an Executive Session and the topics.Promanrt J plone XE Cond ca OOF wiley ve ihHuaCC"IU ee? e Send Russell Dick an email on Friday,December 30 to approve the agenda.<russell.dick@hunatotem.com> e Plan on attending this to do more observing of my role.(oy. .xy Melwet soud 19f>a7 49>;"rece Cadin 1B[OS-MuCowes Set Ho voll wkMai.™ei 7 Bisp Chick MOT Jamelle wertvk vidi ;ith Pick up mail in the afternoon from the mail slot.<P Lay pte NOT ipokePutlettersaddressedtoMichaelinhisinboxinhisoffice(Vu (W TCH Throw away any solicitation unless it is a magazine to Michael's attention.(WJ/th aete ;Water plants in Michaels office 4 v?S&E bye 400 Mist the fern and water it twice a week.The supplies are in the wicker basket. Water the plants every Friday.Please also water Seans plants on Friday. Janelle -(st We "weWo-wh JY (Se12/16/2016 Page 2 of 2 Executive Assistant Desk Duties while |am on vacation Copy paper The 2"floor keep the copy paper in the janitor's closet in between the two restrooms.Check the supply once a week.If it is running low,ask Karl to bring up two boxes. Weekly report NASpeJanelle,continue to do the weekly report.Send it out to AIDEAALL on Tuesday's,cout Governors briefing due Wednesday's at 12N Send an email out to Katie and Sean on Tuesday asking if they have any items for the Governors briefing.If you"A \|4 have not heard back from them,ask them again Wednesday around 9am and let them know it must be emailed toSaneJuneauby12N.JeIftheygiveyoucontent,please |it to Linda Mattson.Cc Michael and Russell Dick.See attached as asample.¥CtWee vy Uste,Crain € Intranet &Website The helpdesk in the contact person to make any changes or additions to the AEA website. Letters Once Michael or the writer has signed the letter,scan it and save the pdf in the Executive Director reading file H:\AEA Executive Director Office\Reading Files. To send letters to the legislators or the governors office see the attached letter as a sample.Addresses and email addresses can be found here:http://w3.legis.state.ak.us/Go to either senate or house and find the recipient.Click on their picture for their page.See my Legislature page for old and new names for the Finance committee.adhmaeSuitypdakdalia0r/stOamt +heneler on >FateMostlikelytheletterisgoingtobeemailedandnotmailed.For the email body type "Please see the attached letter sent on behalf of Michael Lamb,AEA's Interim Executive Director."Include your name and contact.Once you email it,take the original paper letter and put in the nal Fwdcorrespondence binder whichis on the oP oeofthefilecabinet.on wen!F wh gyrt }to oho VhsProjectFactSheetsaredueDec30.Please send out a reminder that-dey for those that have not sndatcd it yet.OM DVO YH S44 244Pa '4 Legislative Binder (me)(np Please have one of you\volunteer to start working on this binder.It involves making three binders (Michael,Sean,sa and Katie)for them to bring to Juneau during the legislative session.It will be added to it so right now we can start by making copies of what we have and figure out categories for them. Resolutions on the AEA website status” If asked by Michael,I have broken up the resolutions into categories and just need to properly name them before I give them to IT to add to the website.I will work on this once I return.wd -sdfo INC,VAweaof aged rerrrcel/MCA -bvdeck,schoduke,|[48 4 Ajreennes (oC.Coe ot Cy: |for mah on feephony fnoh -rid CreyoRsee)cud fo Jole (Oar our ryt Abluvade IMC +BPC prntet lyk fey 3009"Onde gaiterlpearlyist of proses percha,12/16/2016 opie lo Tr Ime mach op wdyOIVeonwebs:Oo Intertie Management Committee Telephonic Meeting MEETING MINUTES Wednesday,December 28,2016 Anchorage,Alaska 1.CALL TO ORDER Chair Mark Johnston called the meeting of the Intertie Management Committee to order on December 28,2016 at 9:32 a.m. 2.ROLL CALL FOR COMMITTEE MEMBERS Brian Hickey Chugach Electric Association (CEA)_.. Cory Borgeson Golden Valley Electric Association (GVEA) Tony Izzo Matanuska Electric Association (MEA Kirk Warren Alaska Energy Authority (AEA)* Mark Johnston Anchorage Municipal Light &Power (ML&P). 3.PUBLIC ROLL CALL 6A, Several members of com ittee expr ssed concern that multiple drafts of the Resolution havecomethroughveryrecently,up to a few minutes before the meeting began,and they have not had sufficient time to review with legal counsel. MOTION:Mr.Hickey moved that the IMC table the Intertie Management Resolution 16-1 and Utility MOA 2016 Douglas Substation Upgrades to a date to be determined by the Chair.Motion seconded by Mr.Borgeson.The motion passed unanimously. Mr.Borgeson asked if delaying review and approval of the Resolution and MOA would have any effect on the project timeline.Mr.Warren said he did not believe the changes Mr.Gibson made to the Resolution were substantial.Mr.Lockard said we are still working with MEA on Procurement documents,with a draft scheduled to go to MEA next week,so if the IMC can December 28,2016 IMC Meeting Minutes Page 2 of 2 review the Resolution and MOA within the next week or so,that should not negatively impact the timeline.Mr.Kuhn concurred with Mr.Lockard. Mr.Borgeson requested that utilities'legal counsel be present at the next meeting.Mr.Johnston indicated ML&P's legal counsel did have some issues with the Resolution,and he will circulate those via e-mail to committee members,so members can review concerns over next several days before the next meeting is held. Mr.Izzo asked whether the 4"Whereas clause in the Resolution is requiring an additional Resolution.Mr.Gibson indicated the 4"Whereas sets up Section 1 and does not require an additional Resolution. 7.COMMITTEE ASSIGNMENTS None 8.NEXT MEETING DATE Next regular meeting dateis still TBD.Chair will geta meeting scheduled as quickly as possibletodiscussResolutionandMOAwithutilitiesandtheirlegalounsel. 9.ADJOURNMENT Mr.Izzo made a motion to adjourn.Motioi ed .Borgeson.There being no further Mark Johnston,Chairm. Kirk Warren;Secretary March 31,2016:Board Comments Vice-Chair Pruhs requested an independent survey be completed regarding which utilities in rural Alaska do not have maintenance reserve accounts set up for replacement and repair (R&R)for their power generation systems...He believes this information is valuable and is concerned many communities may not be prepared for an unanticipated liability. ENERGY AUTHORITY ALASKA INTERTIE MANAGEMENT COMMITTEE MEETING Wednesday,December 28,2016 -9:30 AM **PLEASE WRITE LEGIBLY** NAME Organization Janetle Sta.Cut AEA Melissa St Denis AER vik warren Aer Bernre Smith RCA on tne phim: Mah Johnston MIP Arian th Key Crwaachny Gleancu Cores Borgeson Gaiden ValeTony,\ZZ0 MEA Kirh Gasman Dowd Pease Gav Kun Ed denkin nb Wilson Jt ame Ken Lona ford Balbo DowDovid_Louhard Jou,LoveBAOBors quist Mark dohnson Bure With ea Pon Bishan ean Oabe ATTENDANCE -mc December 14,2016,(8::000 amPhone=sssssSss COMMITTEEMEMBERS.|ALTERNATE > Brian Hickey (vice chair)CEA Burke Wick |Mark Johnston (chair)|MLP _Jeff Warner : |AEA |||Kirk Warren,Secretary/Tre:reasurerCoryBorgeson_|GVEA Allen Gray Tony Izzo 'MEA 'Gary Kuhn poses Ce es moe note en ee ee ee pee wgPublicMembers__COUNSELBovoceeaecetanekcen ee eee ae nce een teed ed|Bernie Smith ||KirkGibson,McDowell Rackner &Gibson PC:Bob Day-HEA-!| _Brian Bjorkquist,Dept.of Law | "David Gillespie -ARCTEC po David Pease -MEA _Dave Burlingame -EPS-KKaren Bretz-MLP ||-Ed Jenkin-MEA Intertie Management Committee Telephonic Meeting MEETING MINUTES Wednesday,December 28,2016 Anchorage,Alaska 1.CALL TO ORDER Chair Mark Johnston called the meeting of the Intertie Management Committee to order on December 28,2016 at 9:32 a.m. 2.ROLL CALL FOR COMMITTEE MEMBERS Brian Hickey Chugach Electric Association (CEA), Cory Borgeson Golden Valley Electric Association (GVEA) Tony Izzo Matanuska Electric Association (MEA)SBKirkWarrenAlaskaEnergyAuthority(AEA)©=Mark Johnston Anchorage Municipal Light &Power (ML&P): 3.PUBLIC ROLL CALL 5.PUBLIC'COMMENTS None 6.OLD BUSINESS6A.MOA for Dou las Substat n Upgrades Several members of committee expressed concern that multiple drafts of the Resolution havehadsufficienttimetoreviewwithlegalcounsel. MOTION:Mr.Hickey moved that the IMC table the Intertie Management Resolution 16-1 and Utility MOA 2016 Douglas Substation Upgrades to a date to be determined by the Chair.Motion seconded by Mr.Borgeson.The motion passed unanimously. Mr.Borgeson asked if delaying review and approval of the Resolution and MOA would have any effect on the project timeline.Mr.Warren said he did not believe the changes Mr.Gibson made to the Resolution were substantial.Mr.Lockard said we are still working with MEA on Procurement documents,with a draft scheduled to go to MEA next week,so if the IMC can December 28,2016 IMC Meeting Minutes Page 2 of 2 review the Resolution and MOA within the next week or so,that should not negatively impact the timeline.Mr.Kuhn concurred with Mr.Lockard. Mr.Borgeson requested that utilities'legal counsel be present at the next meeting.Mr.Johnston indicated ML&P's legal counsel did have some issues with the Resolution,and he will circulate those via e-mail to committee members,so members can review concerns over next several days before the next meeting is held. Mr.Izzo asked whether the 4'"Whereas clause in the Resolution is requiring an additional Resolution.Mr.Gibson indicated the 4""Whereas sets up Section 1 and does not require an additional Resolution. 7.COMMITTEE ASSIGNMENTS None 8.NEXT MEETING DATE Next regular meeting dateis still TBD.Chair will get a meeting scheduled aas§quickly as possibletodiscussResolutionandMOAwithutilitiesandtheirlegalCounsel. 9.ADJOURNMENT on,secon ed b Mr.Mr.Izzo made a motion to adjourn.Moti orgeson.There being no further Mark Johnston,Chairman Kirk Warrén;.Secretary