CONTACTS 
0201 - PG&E Transm Contracts              415 973 3872 fax 972 0871
020101 - Ms. Pam Taheri,
020102 - Contract Manager, Rm 2334 Mail Code B23A =415 973 1660
020103 - Transmission Contracts =415 972 0871 (fax)
0202 - PG&E Building & Land Svcs.         415 973 8273 fax or 800...
020201 - Mr. Buck Jones;  =415 973 5874; Land Department
0203 - PG&E Trans Sys Engineering         415 973 3877 fax 9209
020301 - Mr. Randy Hopkins, E.E.; Engineer; Rm 580, Mail Code F5C =415 973 6757
0204 - PG&E Building & Land Svcs.         415 973 8273 fax or 800...
020401 - Mr. Robert Masuoka, P.L.S.
020402 - Senior Land Project Analyst Room 2027, Mail Code H21A =415 973 8273
020403 - Land Department

SUBJECTS
Gold Hill Horseshoe Upgrade
Sierra Contract
Schedule, Relocation, GO 131-D
Budget, Relocation, Accelerate for GO 131-D Exemption
Schedule File, 940920
Cost Estimate

0908 -    ..
0909 - Summary/Objective
0910 -
091001 - Followed up work at ref SDS 4 line 61.  Discussed GO 131-D, schedule
091002 - and cost of obtaining exemption.  This relates to the need for pre-
091003 - contract payment agreement with Sierra in order to begin Engineering.
091004 - Set meeting for 941121 to revise schedule.  Pam left message indicat-
091005 - ing progress on resolving payment issues with Sierra.
091006 -
091007 -
091008 - Follow Up
091009 -
091010 - Randy will submit letter indicating realistic schedule activity dur-
091011 - ations, and alternate durations and cost to accelerate to obtain GO
091012 - 131-D exemption.
091013 -
091014 - Bill and Rod will update schedule on Monday, 941121.
091015 -
091016 -
091017 -
0911 -
0912 -
0913 - Discussion
0914 -
091401 - Initially, Randy showed me a schedule dated 940920 which was different
091402 - from the schedule I printed today to prepare for the meeting, per ref
091403 - SDS 5 line 67.
091404 -
091405 -     Schedules Conflict
091406 -
091407 -     The 940920 schedule shows engineering to start oa 950116 and
091408 -     controlled by project approval of PG&E management.  The schedule
091409 -     I brought showed engineering starting a month earlier oa 951219.
091410 -
091411 -     Bill called while I was at Randy's office.  He indicated I may
091412 -     have been given an earlier schedule file when I received it
091413 -     following the progress meeting on 941102, ref SDS 2 line 93, and
091414 -     that the 940920 document Randy has is the more current version.
091415 -
091416 -     This means Bill and I need to chase down the source computer file
091417 -     for the 940920 schedule, and get it identified in the record.
091418 -
091419 -          [Did this at ref SDS 6 line 205.]
091420 -
091421 -
091422 - Alternate Schedule Scenarios
091423 -
091424 - Bill wants to work on the schedule file on Monday, 941121.  We con-
091425 - sidered preparing alternate schedule and budget scenarios to support a
091426 - disclosure to Sierra of possible impacts of GO 131-D, per Buck's
091427 - request at ref SDS 4 line 206.
091428 -
091429 -     He indicated that the Land activities and the GO 131-D activity
091430 -     need to be consolidated, now that we have more information.
091431 -
091432 -
091433 - Relocation Work Activities
091434 - Accelerated Performance & Cost
091435 -
091436 - Randy indicated that the activity durations for the Relocation work in
091437 - the 940920 schedule for engineering, material delivery and construc-
091438 - tion reflect expedited performance in order to qualify for GO 131-D
091439 - exemption.  He said engineering will be done by a crew of about 3
091440 - engineers working full time straight through.  Direct cost is about
091441 - $100k, which translates into $240k charge to the customer.  He thinks
091442 - that by adding to the crew and/or by incurring overtime the schedule
091443 - for engineering could be compressed by as much as another two weeks.
091444 - He said there are 20 poles to design, and 2 lattice towers to design.
091445 -
091446 -     Outsourcing does not seem like a viable way to accelerate the
091447 -     engineering, because the time to gain approval from Sierra for
091448 -     the effort and then to procure a vendor would be greater than the
091449 -     amount of time that can be saved by acceleration.
091450 -
091451 - He has talked to material vendors for the towers.  They have
091452 - indicated that if they get the order now, they can do the work in
091453 - about 5 months, which is shown in the schedule.  This duration
091454 - reflects the fact that their work load is slow at this time.  If
091455 - their work load increases between now and when the order is actually
091456 - placed, the delivery time could increase to as much as 12 months.
091457 - Thus, the current procurement schedule is already at the low end of
091458 - the time ordinarily needed for work of this magnitude.
091459 -
091460 - Randy said there is only a single supplier for the anchor bolt
091461 - assemblies needed for the poles.  These extend as much as 12' into
091462 - the foundation.  They include base plates at the bottom and top of
091463 - the assembly.  Bolts are approximately 3" diameter.  These are major
091464 - assemblies.
091465 -
091466 - Randy will call these suppliers to ask about the cost of earlier
091467 - delivery and how much earlier they could deliver with a bonus incent-
091468 - ive.
091469 -
091470 - On an interim basis, it seemed that 2 weeks could be reduced for
091471 - engineering at a cost to the customer of about $50K, and that perhaps
091472 - for another $50K we could reduce the schedule another month on
091473 - delivery of major materials.
091474 -
091475 -     Thus it appears that for $100k we can reduce the current schedule
091476 -     by about 1.5 months.
091477 -
091478 - It is not clear that construction duration can be further reduced
091479 - because of the restricted nature of the work area.  Large crews and
091480 - more equipment would likely impede one another more than reduce the
091481 - overall construction time.  Possibly one crew could work at one end
091482 - and another crew at the other end, but it is not clear at this time
091483 - that additional crews would be available.
091484 -
091485 - Forces tending to extend construction time would be weather, obtaining
091486 - temporary clearances, and time to correct mistakes.
091487 -
091488 -      Completion by 960101 Barely Possible
091489 -
091490 -      Since the current schedule dated 940920 shows completion of
091491 -      relocaton in Feb 1996, a reduction of 1.5 months leaves no
091492 -      contingency for weather and construction delays that might emerge
091493 -      in doing the work in a constricted area, or the effects of
091494 -      accelerated engineering.
091495 -
091496 -      Thus, a "tight" schedule can be made only slightly tighter and
091497 -      this imposes risks of error.
091498 -
091499 -
091500 - Clearances
091501 -
091502 - Randy feels another activity should be added to the schedule for
091503 - this.
091504 -
091505 - He said the project will require a "clearance" from PG&E management
091506 - responsible for the PG&E line in the adjacent right of way, but that a
091507 - clearance will not be needed for the 230kV line in SMUD's adjacent
091508 - right of way.  Initially he thought the latter would be necessary, so
091509 - I asked if it is included in the conceptual agreement. In considering
091510 - this point, Randy concluded PG&E does not need a clearance from SMUD
091511 - in order to construct the new pole line, although it will need clear-
091512 - ance for the adjacent PG&E line.
091513 -
091514 -     We considered the advantage of setting out his evaluation of the
091515 -     clearances matter, so it is available later if he is on vacation
091516 -     or otherwise cannot re-construct the analysis he did today.
091517 -
091518 -
091519 - Analysis on Schedule & Cost
091520 -
091521 - Randy will write a letter to Bill setting out the estimated costs to
091522 - complete earlier and by what amounts, per above analysis.  Randy will
091523 - include another set of schedule durations of normal work performance,
091524 - so a realistic schedule projection can be made absent the artificial
091525 - constraint of trying to obtain GO 131-D exemption.
091526 -
091527 - We will try to get a similar letter from Buck on the reasons and
091528 - cost of obtaining GO 131-D exemption and on the cost if the
091529 - exemption is not obtained.
091530 -
091531 - These letters can support a schedule scenario to obtain a GO 131-D
091532 - exemption which can in turn be used by Pam to notify Sierra of its
091533 - options.
091534 -
091535 -
091536 -
091537 -
0916 -

SUBJECTS
Cost & Schedule Impacts

1004 - Summary/Objective
1005 -
100501 - Buck was not available today to comment, per the notice issued at ref
100502 - SDS 4 line 125.  I called him in the afternoon to advise of progress
100503 - reported above, and of Pam's comments on discussions with Sierra (see
100504 - below).  Also advised that Bill and I plan to update the project
100505 - schedule on Monday, and would appreciate his input.
100506 -
1006 -
1007 -
1008 - GO 131-D Considerations
1009 -
100901 - On an interim basis we can use the order of magnitude valuations
100902 - Buck offered at the Nov 2, Progress meeting, that compliance with GO
100903 - 131-D (i.e., not obtaining a exemption) would range from $50-$100K.
100904 -
100905 -     This is supported by Buck's EM of 941115 requesting approval of
100906 -     $100K to proceed with GO 131-D activity, ref DRP 5 line 17.
100907 -
100908 -     We need to confirm with Buck the ramifications of the request for
100909 -     budget authority of $100K.
100910 -
100911 -         It would seem the intent is perform GO 131-D since $100K is
100912 -         the amount reported for that activity at the Progress Meeting
100913 -         on 941102, ref SDS 1 line 242.  If true this seems to be an
100914 -         effort to begin that process now, yet the question arises
100915 -         whether it will require engineering, and if so, that budget
100916 -         must be released also.
100917 -
100918 -             If this is the intent, then why cannot this wait until
100919 -             the contracts are signed in February or March 1995?
100920 -
100921 -         If the effort is aimed at obtaining G0 131-D exemption, then
100922 -         why is the budget not in the range of $5K?
100923 -
100924 -
100925 - Randy expressed the view today that even if a GO 131-D exemption is
100926 - obtained, the project is still subject to public notice procedures
100927 - which could result in remedial improvements, discussed at the Progress
100928 - Meeting on Nov 2, ref SDS 1 line 290.
100929 -
100930 -    [This position was later supported at ref SDS 6 line 157.]
100931 -
1010 -