| 24 May 2011 Minutes - Approved |
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MINUTES OF THE MEETING OF THE COMMISSION
May 24, 2011
• Approval of the Meeting Minutes and Claims
ACTION: Commissioner Murphy motioned to approve the minutes of the regular meeting held May 10, 2011, and the claims of May 24, 2011. Commissioner Kenner second the motion. Motion passed unanimously.
ACTION: Commissioner Murphy motioned to approve Resolution No. 628 authorizing cancellation of Warrant No. 852709. Commissioner Kenner second the motion. Motion passed unanimously.
Two bids were received by the advertised deadline, 2:00 PM on Monday, May 16. Based on initial review of the bid packages submitted, District staff deemed both to be responsive with respect to submittal of all required bid forms:
Both bids submitted are under the Engineer's Estimate. Staff's recommendation is to accept United Sales Associates, Inc's bid proposal as the Lowest Cost Responsive Bid and to Award the Bid to United. Award of the bid will have no impact on the District's 2011 budget. The bid is lower than the District's Engineer's Estimate. The cost of the equipment is included in the capital improvement project budget for the Imhoff Road 115 kV Transmission Line Project (CIP E-10). ACTION: Commissioner Murphy motioned to award the bid for the 3-Way Switch and Steel Pole for the Imhoff Road 115 kV Transmission Line Project to United Sales Associates, Inc. and authorize the District's General Manager to sign and execute the contract. Commissioner Kenner second the motion. Motion passed unanimously.
Cost Sources: Electric Pass-Thru, BPA Res. Ex. and C & R Credit, Water Variable Costs, Labor Benefits(ex. Capital Labor), O & M Expenses, Interfund Loan for GV Operations, Extraordinary Maintenance, Professional Services, Insurance/Subscriptions/Dues, Office Expenses, Education/Travel, Taxes on District Services, Business Development, Business Services, Noanet, Telecom Debt Service, All Other Debt Service, Capital and Reserves. Shosten noted that raw water service revenue is down slightly, Grandview is a little over due to higher use; Business services revenue will increase when projects begin in summer as will O & M expenses; Purchasing of water chemicals are in a bulk lump sum; and other purchases such as insurance, memberships and subscriptions are made at the beginning of the year.
Walters said that the Administration Office - 3rd Phase Expansion budgeted amount reflected additional funding. The Energy Conservation Project currently is under budget because the variable drive frequency motor was not installed as originally planned. A transformer originally thought needed for the purchase of the Enterprise Substation is no longer required; however, purchase of the PSE Ferndale Substation/Interconnect may require the addition of a new transformer. The District is also anticipating more work this year on the substation redesign project. Funding designated for the redesign in the 2012 budget will be transferred to help offset 2011 costs. ACTION: Information only. No requested action by the Commission. • Manager's Report Potable Water Service for South Lake Samish - A property owner from the South Lake Samish area contacted the PUD about possible water service from the Skagit PUD's Alger well and pipeline. Jilk contacted WA State Department of Health (DOH) who is aware of the situation as most property owners draw lake water from the shallow end of the lake creating issues with algae bloom and the Friday Creek drainage. DOH indicated there is funding available for a feasibility study for a non-lake source (Alger well and pipeline). Skagit PUD may be open to the idea and has no objections in serving Whatcom County but there is a concern with the tribes on the aquifer. A pipeline exists from the Judy Reservoir which follows old Highway 99; however, it is four miles short and would need to be completed in order to serve the South Lake Samish residents. Commissioner Kenner inquired if the line extension is feasible. Jilk replied it is not feasible even though some property owners expressed a willingness to pay up to $10,000 each to build the line, which would not come close to current construction costs. Other possibilities include the Lutherwood recreational facility which has its own purification system but is aging and needs to be replaced and South Lake Samish Water and Sewer District. The study would focus on building a small treatment facility. Jilk said the District would be willing to facilitate the study (similar to the North County Nitrate Study) but it is unlikely that the Skagit PUD would supply the water. Jilk will continue to discuss this with the property owners and South Lake Samish W&S District. Project Manager - Holden introduced Alec Strand who was recently hired as the District's new Project Manager. Strand's project management background includes CAD/GIS and project management experience and familiarity with the state bidding process and purchasing policies. • There being no further business for the regular meeting, the Commission adjourned the regular meeting at 8:25 a.m.
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