THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700


S U M M A R Y


DIARY: September 22, 1994 10:00 AM Thursday; Rod Welch

Meeting with CDWR in Sacramento re project Schedule review.

1...Summary/Objective
.....Completion Conflict Solutions
2...Follow Up
3...Lori said CDWR's policy is for PG&E to perform its work independent
4...Final Grades
.....Delayed Completion - GO 131-D
5...Energize & Test PG&E's Work
6...Meeting in November


..............
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CONTACTS 
0201 - PG&E Proj Mngmnt Transm Sys        415 973 6778 fax 8426
020101 - Mr. Bill DeHart, PMP
020102 - Project Manager, Room 1183B-V11C =415 973 5655 pger 510 810 3026
020103 - Project Management Group
0202 - CDWR, Div Op. & Maint.             Telephone;   fax or 800...
020201 - Ms. Lori Brown, E.E.
020202 - Project Manager PG&E Contract, Coastal Branch, Phase II =916 653 9849
020203 - Power Contracts =916 653 9295 fax
0203 - PG&E Transm Contracts              415 973 3872 fax 972 0871
020301 - Mr. Kevin Coffee, E.E.
020302 - Contract Manager, Rm 2334 Mail Code B23A =415 973 3872
020303 - Transmission Contracts =415 972 0871 (fax)
0204 - The Welch Company                  415 781 5700
020401 - Mr. Rod Welch

SUBJECTS
Coastal Branch Aqueduct, CDWR
Interface with CDWR Activities
Delays, General, CDWR Schedule
940922 Sacramento with CDWR, Schedule

1006 -    ..
1007 - Summary/Objective
1008 -
100801 - Followed up work at ref SDS 11 line 54.  Reviewed schedule, ref OF 6,
100802 - prepared last night at ref SDS 13 line 68, applying information from
100803 - PG&E Project Team meeting in Los Banos yesterday, ref SDS 12 line 50.
100804 -
100805 -     Completion Conflict Solutions
100806 -
100807 -     Bill showed how PG&E has scheduled to begin construction of the
100808 -     transmission line, and other PG&E work to correlate with tasks 1,
100809 -     9, 13, 14 and 24 shown in CDRW's schedule dated 8/11/94, ref DRP 1
100810 -     0000, per Action Item #3 from meeting on Aug 18, ref SDS 1 8448.
100811 -
100812 -     This delays completion by PG&E into the mid to late 1996 time
100813 -     frame, which is beyond the completion dates in PG&E's contract,
100814 -     and poses a GO 131-D issue.
100815 -
100816 -     Lori took immediate action to develop solutions by placing several
100817 -     conference calls with CDWR project staff.
100818 -
100819 -
100820 -  ..
100821 - Follow Up
100822 -
100823 -  1.  PG&E will revise its schedule (including the notes) to reflect
100824 -      CDWR's intent for PG&E to complete its work independent of prog-
100825 -      ress on the pipeline line, plants and other CDWR work.
100826 -
100827 -      PG&E will submit (via fax) a revised schedule that reflects these
100828 -      understandings.
100829 -
100830 -         [On 940927 this was done. ref SDS 18 0001
100831 -      ..
100832 -  2.  PG&E will contact CDWR oa Nov 10, 1994 to schedule meeting
100833 -      on developing plans for testing plant operations.
100834 -
100835 -         [On 940928 this action was taken. ref SDS 19 0000.]
100836 -
100837 -  3.  PG&E will advise CDWR about the need for final grades on the
100838 -      pipeline as a condition for PG&E to construct the transmission
100839 -      line from Devils Den to Polonio Pass.
100840 -
100841 -      [This was done at ref SDS 17 line 77.]
100842 -
100843 -
1009 -

SUBJECTS
Construct Transmission Lines
Pipeline Reach No. 1, by CDWR
Start Dates
Interface with CDWR Activities

1807 -
180701 - Lori called Bob Grotheer, who is the CDWR's Project Engineer for the
180702 - Pipeline project.  In a conference call we discussed Bob's understand-
180703 - ing of current status and expected progress.
180704 -
180705 -      Bill explained PG&E plans to begin constructing the transmission
180706 -      line from Arco Substation to Devils Den, an area where CDWR is
180707 -      not constructing pipeline, and then continue from Devils Den to
180708 -      Polonio Pass, which appears to be "Reach 1" on CDWR's schedule
180709 -      dated 8/11/94, per ref DRP 1 line 7.
180710 -
180711 -      Rod asked if Bob expects Pipeline Reach 1 will be "operational"
180712 -      on 950630, as shown on CDWR's schedule?
180713 -
180714 -      Bob indicated he had not seen that document [CDWR's 8/11/94
180715 -      schedule, ref DRP 1 line 7] and that he doubted or could not
180716 -      comment with confidence about being "Operational" on 950630.
180717 -
180718 -
180719 -  ..
180720 -
180721 - Lori said CDWR's policy is for PG&E to perform its work independent
180722 - pendent from other CDWR activities, including construction of the
180723 - pipeline [other examples are obtaining easements, permits, connecting
180724 - to plant switchyards, etc.] - see confirmations at ref SDS 24 line
180725 - 210, and at ref SDS 27 line 96.
180726 -
180727 -      Bob said he expects work on the pipeline will progress in a way
180728 -      that PG&E can begin and complete construction of the Transmission
180729 -      line from Devils Den to Polonio Pass, without interruption.
180730 -
180731 -      Bob said this is based on the fact that the contractor has
180732 -      installed 2 miles of pipe, and is taking delivery of 2 sections
180733 -      of pipe per day.
180734 -
180735 -         [See report at 941005 Progress meeting of 8 - 10 sections per
180736 -         day, ref SDS 22 line 187.]
180737 -
180738 -
180739 - Final Grades
180740 -
180741 - Lori asked about the note on PG&E Schedule task DD3D, which is task #1
180742 - on CDWR's schedule of 8/11/94 "Pipeline Reach No. 1, indicating PG&E
180743 - needs final grades to be restored after the pipeline is constructed,
180744 - in order for PG&E crews to begin staking for construction of the
180745 - Transmission Line.
180746 -
180747 -     Rod explained this condition comes from discussions with Bob
180748 -     Masuoka at ref SDS 9 line 156.
180749 -
180750 -
180751 - Lori recalled another project where longer transmission line poles
180752 - were used to accommodate grade variations.
180753 -
180754 - Lori said observations at the project site indicated that the trans-
180755 - mission line was sufficiently beyond the line of the pipeline, so that
180756 - finish grading of the pipeline might not control construction of the
180757 - transmission line.
180758 -
180759 -       [See analysis at ref SDS 21 line 434, and later site visit at
180760 -       ref SDS 25 line 298.]
180761 -
180762 -
180763 - She placed a call to Bob Masuoka to clarify why PG&E needs final
180764 - grades to start its transmission line construction work.
180765 -
180766 -     Bob did not return this call.  Bill said PG&E will follow up to
180767 -     clarify this point, but in any case will endeavor to construct the
180768 -     line as quickly as possible within current budget constraints.
180769 -
180770 -     Lori asked that PG&E assume in its scheduling that CDWR will
180771 -     arrange to have the pipeline and other work for which CDWR is
180772 -     responsible to be accomplished within a time frame that will allow
180773 -     PG&E to meet its contract commitments.
180774 -
180775 -
180776 - Lori called Bob again before the meeting concluded, but he was still
180777 - not in.  PG&E will follow up to clarify this requirement.
180778 -
180779 -     [This was followed up at ref SDS 17 line 78.]
180780 -
180781 -
180782 -
180783 -
1808 -

SUBJECTS
Coordinating Pumping Plant & Transmission Line Construction
DD-Polonio Pass Switchyards, CDWR task #24
CDWR Schedule
PG&E Transmission Line Construction, Energize/Testing
CDWR Meters, Switchyards, Plant Completion

3408 - Summary/Objective
3409 -
340901 - Bill explained how PG&E tried to develop relationships between
340902 - construction of the Transmission Line, testing and energizing by PG&E,
340903 - and installation of Meters and construction of Switchyards, and
340904 - operational testing by CDWR.
340905 -
340906 - Lori indicated CDWR needs power from PG&E's transmission line, approx-
340907 - imately one (1) month after CDWR takes delivery of pumping plant
340908 - "equipment."
340909 -
340910 -     Review of CDWR's schedule dated 8/11/94 submitted to PG&E, does
340911 -     not seem to have a clearly defined task identified for delivering
340912 -     pumping plant equipment.
340913 -
340914 -     Meters
340915 -     Delayed Completion - GO 131-D
340916 -
340917 -     Kevin Coffee showed that PG&E's contract calls for CDWR to install
340918 -     meters in advance of "testing and energizing of service" (see sec-
340919 -     tion 8.4 page 13:15).
340920 -
340921 -     The contract dates for installing meters, appears to be aimed at
340922 -     supporting "Operational" completion of the plant switchyards,
340923 -     which in turn appear to support testing of CDWR plants.
340924 -
340925 -     Bill showed that PG&E has planned to complete its construction
340926 -     after the switchyards are operational, and that PG&E plans to
340927 -     energize and test on the dates CDWR's plants are shown to be
340928 -     "Operational."
340929 -
340930 -     Lori noticed that this sequencing results in PG&E completing its
340931 -     work in Apr-Jul, 1996 period, which is beyond PG&E's completion
340932 -     dates.  Bill said this can result in further delays due to the
340933 -     impact of General Order 131-D.
340934 -
340935 -
340936 -
340937 - Bob Grotheer indicated PG&E cannot connect to CDWR's plants until the
340938 - transformers are installed.
340939 -
340940 -     Bill noted that CDWR's schedule shows task #23 "Power Transform-
340941 -     ers" will be "Operational" on the same dates as the Switchyards,
340942 -     CDWR task #24, which is in mid-1996.
340943 -
340944 -
340945 -  ..
340946 - Energize & Test PG&E's Work
340947 -
340948 - Bill proposed that PG&E will plan to construct the Transmission line
340949 - within a few poles of CDWR's plant switchyards, which seems to be
340950 - represented by task #24 on CDWR's schedule dated 8/11/94, ref DRP 1
340951 - 0000.  This will accomplish CDWR's objective for PG&E to construct its
340952 - work independent of CDWR's other contractors and activities, as Lori
340953 - mentioned above is CDWR's policy.
340954 -
340955 -     PG&E will energize and test the work it constructs.
340956 -
340957 -     When CDWR is ready to energize and test work by other contractors,
340958 -     the final connections can be made.  This will be more expensive,
340959 -     but should be less costly than delaying completion of PG&E's work
340960 -     into the mid-1996 time frame.
340961 -
340962 -
340963 - Bob Grotheer seemed to indicate this scenario would be acceptable.
340964 -
340965 -
340966 - PG&E will incorporate the tasks for CDWR to install meters, into the
340967 - CDWR task #24 to make the switchyards operational.
340968 -
340969 -     This reflects the idea that PG&E can energize and test its work in
340970 -     advance of CDWR installing meters, and that the meters are needed
340971 -     only to energize and test CDWR's work after the switchyards are
340972 -     installed.
340973 -
340974 -
340975 -
340976 -
3410 -

SUBJECTS
Policy & Procedures
Engineering and Construction, General
Energize & Testing Procedures

3806 - Summary/Objective
3807 -
380701 - PG&E and CDWR need to identify the specific tasks for accomplishing
380702 - this work in a way that meets contract scheduling objectives.
380703 -
380704 -
380705 - Meeting in November
380706 -
380707 - Bob said Lonnie Essage will be assigned to CDWR's project team in
380708 - November to support and develop plans for plant and system testing.
380709 - He suggested PG&E meet with CDWR again after Lonnie is assigned in
380710 - November to develop specific steps for connecting PG&E's transmission
380711 - line, testing it, and then supporting testing of CDWR's work.
380712 -
380713 -
380714 -
380715 -
3808 -

SUBJECTS
940922 Sacramento with CDWR, Schedule
Schedule, RW, Acquire by CDWR, Review by PG&E
Cultural Resource & Biological Survey
Land, Environmental Protection
Action Items, Aug 18, 1994 Meeting
CDWR will schedule easement work
PG&E apply CDWR's easement schedule
CDWR advise PG&E if work should be
Project Manager, Bill DeHart
PG&E submit environmental information by

5013 - Summary/Objective
5014 -
501401 - Bill submitted two copies of PG&E's memo prepared by Mary Boland on
501402 - Sep 20, 1994, ref DRP 2 line 57, calling for construction to begin on
501403 - Feb 3, 1994 so it can complete prior to mid-Apr 1994, in the Arco Sub
501404 - - Devils Den area, in order to accommodate environmental concerns
501405 - about at risk habitat for sensitive status species, ref DRP 2 line 45.
501406 - [Mary's memo was received at the PG&E project team meeting yesterday,
501407 - ref SDS 12 line 210.]
501408 -
501409 - Bill showed how PG&E's schedule of Aug 17, 1994, ref OF 1, intended to
501410 - start construction on Feb 3, 1994 to accommodate these environmental
501411 - concerns, but were revised (see discussions with Bob Masuoka at ref
501412 - SDS 9 line 88), based on information about R/W easements from the
501413 - meeting with CDWR in Sacramento on Aug 18, 1994, ref SDS 1 line 296.
501414 -
501415 -      This conforms to action item 5, from the meeting in Sacramento on
501416 -      Aug 18, ref SDS 1 line 110.
501417 -
501418 - Lori called Gary Weldon during the meeting.  She asked if the entire
501419 - R/W Easement from Arco Sub to Polonio Pass will be available by Feb 2,
501420 - 1995, so PG&E can begin construction on Feb 3, 1995?  Gary said all of
501421 - the legal descriptions will be complete and other preliminary work
501422 - needed to obtain easements, by Nov 1, 1994.
501423 -
501424 - Lori then called Veronica Hicks, and asked that if the legal
501425 - descriptions and other CDWR preliminary easement work is completed by
501426 - Nov 1, 1994, how soon can easements be obtained, so PG&E can start
501427 - construction on the Arco - Polonio Pass portion of the work?
501428 -
501429 -     Veronica said it would be "cutting it close" for CDWR to obtain
501430 -     R/W easements so PG&E can commence work in the Arco Devils Den
501431 -     portion of the transmission line oa Feb 3, 1995, however she
501432 -     thinks there is a good possibility of meeting this goal, and that
501433 -     her office will work to achieve it.
501434 -
501435 -          CDWR has to give 20 days notice of condemnation.  Then the AG
501436 -          has to file and serve notice.
501437 -
501438 -          Lori will submit PG&E's Sep 20, 1994 memo from Mary Bolland,
501439 -          to Veronica.
501440 -
501441 -
501442 -     Veronica said easements for the Devils Den to Polonio Pass cor-
501443 -     ridor may take longer, but she expects they can be finalized in
501444 -     time for PG&E to continue construction uninterrupted after the
501445 -     line from Arco Sub to Devils Den is completed.
501446 -
501447 -     This expectation is based on CDWR having already obtained ease-
501448 -     ments for the pipeline from Devils Den to Polonio Pass, and PG&E's
501449 -     transmission line is generally within this area, so the amount of
501450 -     work to obtain easements, is less than for the Arco Sub to Devils
501451 -     Den line.
501452 -
501453 -          [See concern though at ref SDS 20 line 394.]
501454 -
501455 -
501456 - These understandings indicate PG&E's construction mainly depends on
501457 - completion of easement work for the line from Arco Sub to Devils Den,
501458 - and then depends on both sufficient pipeline construction and having
501459 - easements on the Devils Den to Polonio Pass location.
501460 -
501461 -
501462 -     PG&E will revise its schedule to reflect these understanding.
501463 -
501464 -     [This was done at ref SDS 18 line 64.]
501465 -
501466 -
501467 -
5015 -

SUBJECTS
Construction Permits in Santa Barbara County
CDWR determine if FAA permit includes

5505 - Summary/Objective
5506 -
550601 - Lori said CDWR submitted a letter to San Luis Obispo county giving
550602 - notice of construction work, including PG&E's contract.
550603 -
550604 -     [See follow up at ref SDS 26 line 187.]
550605 -
550606 - CDWR's Jim Schindler decided to notify Santa Barbara County through
550607 - CCWA, rather than send a letter as was done with SLO County.  CCWA is
550608 - an agency of officials within Santa Barbara County who support the
550609 - Coastal Aqueduct project.
550610 -
550611 -     Jim has indicated that CCWA will write a letter to PG&E giving
550612 -     permission to construct the transmission line, and this will
550613 -     resolve Bob Masuoka's concern raised at the meeting in Sacramento
550614 -     on Aug 18 at ref SDS 1 line 616.
550615 -
550616 -     [We are treating this as part of Action 12 on 940818 meeting, ref
550617 -     SDS 1 line 175, and later discussed at ref SDS 23 line 460.]
550618 -
550619 -
550620 -
550621 -
5507 -

SUBJECTS
FAA Application Filing Requirements
FAA Notification, File

5905 - Summary/Objective
5906 -
590601 - In reviewing the notes for task GD1L to File FAA Notification, Lori
590602 - asked if Bob Masuoka has discussed the need to make this filing prior
590603 - to Mar 1, 1995 in order to avoid having to re-open the application,
590604 - which can take another 45 to 90 days?
590605 -
590606 - PG&E will submit this information to Ed through Bob Masuoka.
590607 -
590608 -    [Bob was notified about this at ref SDS 17 line 144, see also
590609 -    subsequent discussion with Bob at ref SDS 23 line 412.]
590610 -
590611 -
5907 -

SUBJECTS
Pay Estimate Review, 9409-- August, 1994
Procedures
Payment, Information Management

6406 - Summary/Objective
6407 -
640701 - Bill submitted the format PG&E will use for its first pay estimate. He
640702 - showed how the numbers have been revised to reflect the adjustment for
640703 - removing the cost of the study, discussed at the meeting in Stockton
640704 - at ref SDS 2 line 63, and also at ref SDS 2 line 103.
640705 -
640706 - Kevin explained the difference between the Cash Flow report and the
640707 - Pay estimate.
640708 -
640709 - Lori seemed to indicate the detail in the invoice is adequate.
640710 -
640711 -
640712 -
640713 -
6408 -

SUBJECTS
Approval of notes for meeting in Stockton,
940901 CDWR in Stockton, Communications

6805 - Summary/Objective
6806 -
680601 - Lori said she has made a quick review of the draft notes for the
680602 - meeting in Stockton, and this did not indicate any major corrections
680603 - are needed.
680604 -
680605 - She asked that PG&E publish the notes in final form.
680606 -
680607 -    [This was done at ref SDS 16 line 55.]
680608 -
680609 -
680610 -
Distribution. . . . See "CONTACTS"