CONTACTS 
0201 - PG&E Transm Contracts                                                                                                                                          O-00000558 0201
020101 - Ms. Pam Taheri,; Contract Manager, Rm 2334 Mail Code B23A
020102 - Transmission Contracts
0202 - PG&E Trans Sys Engineering                                                                                                                                     O-00000560 0202
020201 - Mr. Randy L Hopkins, E.E.
020202 - Engineer; Rm 580, Mail Code F5C
0203 - PG&E Law Department                                                                                                                                            O-00000571 0201
020301 - Mr. Glenn West Jr., Esq.;
0204 - PG&E Building & Land Svcs.                                                                                                                                 O-00000562 0203
020401 - Mr. Buck Jones;
0205 - PG&E Proj Mngmnt Transm Sys                                                                                                                                    O-00000329 0210
020501 - Mr. Tom Marki; Project Manager, Room 1169B-V11C
020502 - Project Management Group

SUBJECTS
Gold Hill Horseshoe Upgrade
Final Conceptual Framework
Remove Existing Line, SMUD

1205 -
1205 -    ..
1206 - Summary/Objective
1207 -
120701 - Follow up ref SDS 7 0000.
120703 -  ..
120704 - Worked out the language to present to SMUD for the contract on Monday,
120705 - 941212.  Made arrangements to attend; Tom later decided I do not need
120706 - to attend.
120708 -  ..
120709 - Follow Up
120710 -
120711 - Need to verify substation work is not required; Buck needs to review
120712 - project schedule; Pam needs to resolve matter of pre-contract pay-
120713 - ments from Sierra.
120714 -
120715 -
120717 -  ..
1208 -
1209 -
1210 - Discussion
1211 -
121101 - Intent/Purpose - Not Enough Time
121102 -
121103 - Pam said she did not set out a statement of intent in the contract, as
121104 - discussed on 941207, ref SDS 10 0000, because there was not enough
121105 - time to do it yesterday.  Glenn indicated that the recitals can
121106 - clarify what is to be accomplished by the contract.  Upon discussion,
121107 - there was no effort to clarify the intent of the contract. To save
121108 - time, Pam omitted the "Arrangement" term, so it need not be defined.
121110 -      ..
121111 -     Improving Conventional Communication Methods
121112 -     SDS Analysis Captures/Invests Intellectual Capital
121113 -
121114 -     I have not had time so far to craft language on this.  My sense is
121115 -     though that based on the meeting with SMUD in Sacramento on
121116 -     941110, see ref SDS 3 0000 and in particular ref SDS 3 8861, and
121117 -     the review by Bill and Tom, ref SDS 9 0000, considerable effort
121118 -     may be required by SMUD and PG&E to reach a common understanding
121119 -     of what is "intended" and how to implement it in the language as
121120 -     presently drafted.  The effort on Monday will indicate whether it
121121 -     would be helpful to add language on "intent" or "purpose."
121123 -      ..
121124 -     PG&E's contract development process provides excellent analysis by
121125 -     skilled contract managers and others, who, due to heavy schedules
121126 -     of meetings and other communications, have difficulty remembering
121127 -     from one meeting to the next what was considered, adopted,
121128 -     rejected, modified and why.  Time is needed to discuss what
121129 -     happened previously, in order to build on prior understandings.
121130 -     This makes for lively, creative meetings where ideas are adopted
121131 -     or rejected for critical strategic reasons. Yet there is nothing
121132 -     to inform anyone in several weeks or years about the complex
121133 -     scenarios anticipated by the drafters of a contract, that are
121134 -     aimed at avoiding harm to PG&E and achieving particular aims not
121135 -     expressly set out in the contract.
121137 -      ..
121138 -     One result is frustration, as expressed by Randy below. ref SDS 0
121139 -     7777
121141 -      ..
121142 -     Another result is a lot of overlooked opportunities for cost
121143 -     savings, as reported on 941004. ref SDS 1 8899
121144 -
121145 -         [On 941211 another example of overlooked tasks that costs time
121146 -         and money attributed to "Murphy's Law". ref SDS 13 0000.]
121147 -
121148 -         [On 980307 Andy Grove's book "Only the Paranoid Survive" says
121149 -         analysis, copious notes, asking questions helps remove
121150 -         ambiguity of mental maps. ref SDS 15 3668]
121151 -
121153 -      ..
121154 -     Contract Scope Analysis
121155 -
121156 -     It could take a day or two to create a memo that pulls together
121157 -     the concerns and aims of key players to show how they are addres-
121158 -     sed in the contract, and how they are supported in the record
121159 -     (i.e., what documents, discussions, EM, drawing).  With SDS, this
121160 -     task is a by-product of doing the work, so it occurs BEFORE going
121161 -     off to negotiate.  Without SDS, a judgement must be made about
121162 -     whether the risks entailed by lack of an audit trail i.e.,
121163 -     "knowledge," pose higher costs than does the time to do the
121164 -     analysis, i.e., acquire knowledge.
121166 -      ..
121167 -     Flow Chart
121168 -
121169 -     Pam explained our discussion on Wednesday about preparing a flow
121170 -     chart to illustrate the intent of the contract. ref SDS 10 5583
121171 -
121172 -     Glenn advised that care is needed in preparing anything that
121173 -     supplements the language, since it could result in double
121174 -     meanings.  Pam feels the chart could be in the appendix, and
121175 -     qualified to avoid confusion.
121177 -      ..
121178 -     Adding a flow chart of what is to be done seems similar to giving
121179 -     a contractor plans and specifications, or as in the case of
121180 -     Appendix E, a location map of the proposed improvements.  There
121181 -     is always a chance of conflict between overlapping sources of
121182 -     information, but experience shows that it is hard to build a
121183 -     project without drawings to support the narrative.  In this case,
121184 -     it will be difficult for those charged with implementing the
121185 -     contract to know what was intended, without a flow chart, as Pam
121186 -     suggests.  This need not necessarily be included as part of the
121187 -     contract documents.  It should be prepared and compared with the
121188 -     language to see if they correlate.  If it becomes difficult to
121189 -     make this correlation then the language should be clarified.
121190 -
121191 -
121192 -
1212 -

SUBJECTS
People Remember Meetings Differently Argue Over Who Said What at the
Entropy Information Bumbling Mistakes Comedy Errors

3404 -
340501 -  ..
340502 - Remove Existing Line
340503 - Disclose 3 Span Active Circuit
340504 -
340505 - Buck recommended setting out in the contract that there is an active
340506 - circuit on the last 3 spans of the line to be removed by SMUD.  He
340507 - and a colleague recently investigated this line again and concluded
340508 - it is active.  He believes the SMUD contract negotiating team does
340509 - not share his knowledge that their line is active.
340510 -
340511 -     On 941108 PG&E's negotiating team considered this issue in
340512 -     preparing the conceptual framework. ref SDS 2 9448
340513 -
340515 -  ..
340516 - Randy was frustrated about having investigated this line on five
340517 - separate occasions with SMUD engineers, and yet at the meeting last
340518 - week, SMUD representatives were saying the line is not active.
340520 -  ..
340521 - Pam asked what the trip reports show, and who got copies?  Did a copy
340522 - go to SMUD?
340523 -
340524 -     [On 040505 Paris peace conference in 1919 heads of state began
340525 -     holding meetings hoping to avoid keeping records, but found the
340526 -     top people in the world could not remember enough to perform daily
340527 -     work; eventually leadership yielded to an even stronger fear of
340528 -     accountable for failing to get anything done, and so a record of
340529 -     organizational memory was prepared and this change in management
340530 -     practice yielded results that expedited progress. ref SDS 17 MQ49
340532 -  ..
340533 - Randy said he did not have enough time time to prepare trip reports,
340534 - but he discussed the matter very carefully with SMUD's representatives
340535 - on each of the trips, and feels they should have prepared records to
340536 - manage their own facilities.  He feels very strongly that he does not
340537 - have time to do SMUD's work, though he had time to make five (5)
340538 - trips to redo the same work.
340539 -
340540 -     [On 020504 study shows professional standards for communication
340541 -     practices and requirements on good management specified in FAR,
340542 -     ISO, Health Care, Covey, Drucker, law, contract notice provisions,
340543 -     and 2,000 years of literacy for contemporaneous documentation for
340544 -     alignment and feedback to work intelligently, quickly, and
340545 -     accurately are ignored in government, business, health care, every
340546 -     sector. ref SDS 16 NS6F
340548 -  ..
340549 - Pam asked why the Engineering Department would make five (5) trips if
340550 - this wasn't important enough to write down what happened?
340552 -  ..
340553 - Randy said maybe he should have made a report, because PG&E's policies
340554 - call for preparing trip reports, but nobody else is turning in trip
340555 - reports, so this is one of those requirements that people perform when
340556 - there is enough time, and in this case everything seemed so obvious
340557 - that writing down what they both saw seemed like unnecessary
340558 - duplication.  He was doing a favor for SMUD, by driving up to
340559 - Sacramento and inspecting the power line, so it was their
340560 - responsibility to manage their work, not his.
340562 -  ..
340563 - Pam asked if Randy every got a copy of SMUD's report confirming
340564 - understandings on the field trips to investigate the line?
340566 -  ..
340567 - Randy advised that one of the reps he met with died after their
340568 - meeting, so no report was issued.  Another went on vacation, and there
340569 - was no feedback on that trip.  Two others did not submit anything,
340570 - which is normal, per above explaining PG&E requirements are ignored
340571 - when there is not enough time. ref SDS 0 HV5X  But, on one of his
340572 - trips he did get a letter from the SMUD manager for the district they
340573 - inspected that confirmed their findings that one of the lines in the 3
340574 - spans was active, which is why he feels so strongly about it today.
340576 -  ..
340577 - Pam asked if Randy could provide a copy of the letter from SMUD to
340578 - facilitate negotiations on this matter?
340580 -  ..
340581 - Randy said that last month, before the meeting with SMUD, he looked
340582 - for the letter, which was received about 6 months ago, but could not
340583 - find it in his files.  Randy recalled that in the recent reorg at PG&E
340584 - his office was relocated, and he is now missing quite a number of
340585 - files, so possibly the letter is just gone.  He called SMUD to ask for
340586 - a copy, but the engineering manager, who wrote it, has transferred to
340587 - another assignment, and the new manager, who is now responsible for
340588 - that part of SMUD's electrical transmission lines, could not find the
340589 - letter.  Randy talked to a secretary.  She remembered something about
340590 - the letter and she looked for it, but couldn't find it.  She called
340591 - her former boss to see if he could reissue the letter, but he has not
340592 - returned her call.  They had a big power outage that has everybody
340593 - working overtime to get the system back up and running for customers.
340594 -
340595 -
340597 -  ..
340598 - Conflicting Memory on Communication about Electrical Spans Active
340599 - Meeting Productivity Reduced by Communication Conflicts in Memories
340600 -
340601 - Randy recalled that Buck advised the SMUD negotiating team at the
340602 - meeting in Sacramento on 941110, of his belief that the last three
340603 - spans in the circuit may be active, and that Bill Renard indicated
340604 - SMUD intends to remove the entire line (see the record on 941011,
340605 - ref SDS 3 8448).
340607 -  ..
340608 - Buck feels that an active line in a right of way could become an issue
340609 - in carrying out the work, so it is prudent to expressly resolve it in
340610 - the contract, even if it delays coming to closure, while SMUD makes
340611 - further investigation and deactivates the line by changing the routing
340612 - to another right of way corridor.
340614 -  ..
340615 - Buck feels somebody should contact SMUD on this, because he does not
340616 - recall talking about the 3-lines being active at the meeting with
340617 - SMUD.  He rememebered discussing it with Randy when they met last
340618 - month to prepare for the meeting with SMUD on 941110, and he
340619 - remembered Randy could not find the letter at that time, as he related
340620 - today, per above. ref SDS 0 HV6W
340622 -  ..
340623 - Glenn did not recall that this was discussed at the meeting in
340624 - Sacramento, either; but, noted that PG&E should not withhold material
340625 - information from SMUD.
340627 -  ..
340628 - Randy got mad accusing Buck and Glenn of undermining his credibility
340629 - with the team, and taking the side of SMUD.  Randy was adament that
340630 - PG&E should not be trying to force SMUD to accept PG&E's opinion about
340631 - the status and future use of SMUD property?
340633 -  ..
340634 - Glenn said nobody is trying to undermine anyone, he would just like to
340635 - have a copy of the letter from SMUD for the legal department, and
340636 - feels that people should try a little harder to follow company policy
340637 - about writing things down, like reports on five (5) trips to SMUD.
340639 -  ..
340640 - Randy accused Glenn of always being on "his case," and asked Glenn and
340641 - Buck both if they made a record of the meeting with SMUD showing that
340642 - Buck didn't talk about the 3-lines being active?
340644 -  ..
340645 - Glenn said he hasn't had time to prepare any notes, because he had to
340646 - fly directly to Los Angeles the next day on a negotiation with
340647 - Southern Cal Edison.  Buck said he never makes notes of anything,
340648 - unless his wife sends him to the store, becasue he will catch Hell, if
340649 - he comes back without everything she wants.
340651 -  ..
340652 - Randy started to complain about the "pot calling the kettle black,"
340653 - but then realized that Buck made a joke.  Everybody laughed, and the
340654 - letter issue was forgotten, since it does not now seem to exist.
340656 -  ..
340657 - Pam indicated that Bill Renard, with SMUD, may, for strategic reasons,
340658 - prefer not to elevate this "3 span active" issue (see discussion on
340659 - modifying the location plan drawing, appendix E, at ref SDS 10 8755).
340660 - Has this been discussed perhaps by phone, or is there anything in the
340661 - record that supports this view?
340662 -
340663 -        [On 941211 analysis "comedy of errors" and "Murphy's Law." see
340664 -        ref SDS 13 6488.]
340666 -         ..
340667 -        [On 971008 Corps of Engineers issued report on costs savings
340668 -        using SDS for Communication Metrics that avoids mistakes that
340669 -        cause "rework." ref SDS 14 1273]
340671 -      ..
340672 -     Communication Metrics Critical to Management Productivity
340673 -
340674 -     The larger point is that there are undoubtedly many similar issues
340675 -     about a complex electrical system, which are not fully known by
340676 -     either party, nor discoverable except through performing actual
340677 -     work.
340679 -      ..
340680 -     In a large organization there may well be conflicting agendas
340681 -     among management elements that require various indirect approaches
340682 -     and interaction in order to accomplish a desired objective (Pam's
340683 -     point at ref SDS 10 3793).  SMUD has entrusted certain of its
340684 -     people who are experienced in preparing contracts that serve the
340685 -     interests of SMUD, to decide for SMUD what it will do.  If PG&E
340686 -     assumes the burden of disclosing to SMUD the status of SMUD
340687 -     property, where does this duty end?  The next time something comes
340688 -     up, cannot SMUD simply say "You should have told us what
340689 -     facilities we have!"
340691 -      ..
340692 -     Another approach is to craft language that places the burden on
340693 -     SMUD to make its own investigation and live with the results.
340694 -     This can include disclosing information received unofficially
340695 -     about usage and future plans, as occurred at the meeting on 941110
340696 -     to form the Conceptual Framework, ref SDS 3 8588.
340698 -      ..
340699 -     On the other hand, the relationship between SMUD and PG&E in
340700 -     combination with the particularities of this contract, may augur
340701 -     for "affirmative action" by PG&E.  It does seem though that PG&E
340702 -     is carrying the larger burden in resolving problems, as between
340703 -     SMUD and PG&E.  In this case, the cost is minimal, ref SDS 2 4839,
340704 -     but the precedent may be far reaching.
340705 -
340706 -
340708 -  ..
340709 - Lease Date v. Lease Term Date
340710 -
340711 - PG&E proposes to lease to SMUD upon notification that satisfactory
340712 - arrangements have been concluded with other parties for this project
340713 - to proceed; however, the term of the lease will not commence until
340714 - PG&E energizes the line to be constructed.
340716 -  ..
340717 - Glenn feels there is a slight gap in this procedure in the event that
340718 - the line is constructed and not energized.  Tom noticed this earlier
340719 - at ref SDS 9 9163.  Buck explained that agency approvals could delay
340720 - energizing PG&E's line for a significant time, although this may not
340721 - be likely.
340723 -  ..
340724 - It seemed that this matter would be left for SMUD to negotiate if it
340725 - wishes to do so.
340726 -
340728 -  ..
340729 - Administration
340730 -
340731 - Pam plans to have a computer, printer and a special data entry person
340732 - attend the meeting to make any revisions agreed upon at the meeting.
340734 -      ..
340735 -     I think I would rather have Glenn do this language crafting, as
340736 -     was done at the conceptual framework meeting, ref SDS 3 8856. He
340737 -     is going to have to approve the thing anyway, and crafting
340738 -     language himself provides an initial pass that may reduce the
340739 -     number of re-writes.  If we write it and hand it to someone, it
340740 -     still has to go through Glenn, then after it is typed, he has
340741 -     review it again.  Pam is the strategist, let Glenn craft the
340742 -     language and in doing so, review it.
340743 -
340745 -  ..
340746 - Pam will pick me up at the Orinda BART station Monday at 0730.  The
340747 - meeting is at 0900.  This will save me from having to drive and find a
340748 - place that is new.
340749 -
340750 -
340752 -  ..
3408 -
3409 -
3410 - 1341 discussion with Tom
3411 -
341101 - He came by while I was training Tito on SDS, and asked that I not
341102 - attend the meeting on the SMUD contract next Monday.  Tom said I have
341103 - contributed in the meeting this morning, and attending the meeting
341104 - with SMUD would not add anything.  He asked me to call Pam and let
341105 - her know.
341106 -
341107 -
341109 -  ..
3412 -
3413 -
3414 - 1352 called Pam
3415 -
341501 - Advised I will not attend meeting on Monday, per above, so she does
341502 - not have to pick me up at the Orinda BART station, as we discussed
341503 - this morning.
341505 -  ..
341506 - She will call next week to let me know the results of the meeting.
341508 -  ..
341509 - Not clear how understandings from the meeting are going to be captured
341510 - and rolled into controllable action items?
341511 -
341512 -
341513 -
341514 -
341515 -
341516 -
3416 -

SUBJECTS
Gold Hill Horseshoe Upgrade
Pre-contract payment agreement

3604 -
360501 -  ..
360502 - Pam indicated to Randy, Buck and Tom that she would arrange to obtain
360503 - pre-contract payment from Sierra, if they recommended it, per prior
360504 - understandings at ref SDS 5 line 128.
360506 -  ..
360507 - There seemed to be agreement to proceed with obtaining this pre-
360508 - contract payment authority from Sierra, but I did not get the sense
360509 - that this task was actually scheduled for action.
360510 -
360511 -
360512 -
360513 -
3606 -

SUBJECTS
Gold Hill Horseshoe Upgrade
Controls, Scope, General
Upgrade Substations because line is Upgraded

3705 -
3706 - 1046 discussion with Randy
370701 -  ..
370702 - In an aside, I asked Randy about the need for substation work in light
370703 - of the enhancement of the power line, per record on 941208. see
370704 - ref SDS 11 7748.
370706 -  ..
370707 - Randy said the Gold Hill Substation was upgraded under a prior project
370708 - to accommodate the capacity of the new line being installed under the
370709 - Sierra Upgrade project.  He briefly described a design for the entry
370710 - of the new line into the substation (which I did not follow), as
370711 - evidence of the substation being able to handle the upgraded line.
370713 -      ..
370714 -     My sense is that this type of issue should be in some engineering
370715 -     review memo that cites the capacity needed in the substation, and
370716 -     cites a drawing or other record showing the existing condition
370717 -     meets that spec.  I did not ask about this point.
370719 -  ..
370720 - I asked about the other substations.  Randy said the other Substations
370721 - have adequate capacity to handle the higher capacity being installed.
370722 - They require no modifications under this project.
370723 -
370724 -    [I mentioned this to Jivat the next day at ref SDS 12 line 99.]
370725 -
370726 -
370727 -
370728 -
3708 -

SUBJECTS
Gold Hill, Schedule Files, 941126b and 941126a
Permits, GO 131-D
Schedule, Cost & Schedule Impacts of GO 131-D
File Exemption

4306 -
430701 -  ..
430702 - Followed up work on applying GO 131-D to Schedule, at ref SDS 8 line
430703 - 65, to evaluate changes to the Schedule at ref SDS 6 line 81.
430705 -  ..
430706 - Buck said he has not had time to review the schedules, but plans to
430707 - do so and to let me know if any changes are needed.
430709 -  ..
430710 - I had the impression from the discussion between Buck, Pam and Tom,
430711 - that Buck has not yet filed for the exemption under GO 131-D, as
430712 - contemplated in our discussion at ref SDS 4 line 171.  None-the-less
430713 - he seems to have a plan in mind to expedite this work.
430714 -
430715 -
430716 -
430717 -
430718 -
430719 -
4308 -