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SHELTON, WA 98584
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Mason PUD News
Commission Report for July 13, 2010
Meeting Highlights
- Commissioners approve bid documents and contracts for certain aspects of Johns Prairie operations center
- Staff presents update on the status of the budget and treasurer’s report
- PUD 3 receives bond upgrade from Standard & Poor’s
- Site preparation for Johns Prairie operations center nearly complete
- July 20 commission meeting rescheduled to afternoon of July 21
Consent Agenda
Mason County PUD No. 3 Commissioners approved vouchers in the amount of $585,556.
Comments from the Public
Residents of the Rustlewood area near Grapeview expressed concern about a project to install overhead distribution lines along Krabbenhoft Road to their neighborhood. PUD 3 staff assured those in attendance that the overhead lines would not extend into Rustlewood, but that the overhead system was being constructed to provide reliability and safety. Future replacement of the community’s underground distribution system with the similar underground design is being planned.
John Komen, a resident of Mason Lake, stated his opposition to construction of the PUD’s Johns Prairie operations center; extension of municipal water to the project site, which he contended would enable construction of a wood-fired power plant in the area; and a pending PUD bond sale.
Action Items
Commissioners approved a recommendation to declare a sole-sourced procurement, and authorized the purchase of four regulators in the amount of $43,724 (plus tax) from HD Supply Utilities Corporation.
On a 2-1 vote, Commissioners approved three addenda on the call for bids (Bid L2-2010, addenda 1, 2, 3) for the Johns Prairie operations center. Most of the changes dealt with instructions to bidders, forms, and procedural matters.
Commissioners approved a recommendation to prequalify Potelco, Inc, of Sumner, WA and Robinson Brothers Construction, Inc. of Vancouver, WA for the public works roster.
On a 2-1 vote, commissioners approved a contract with OAC Services for project management of the Johns Prairie operations center, including site preparation and construction. The contract has a not-to-exceed amount of $623,500.
On a 2-1 vote, commissioners approved a contract with Engineering Economics, Inc. for commissioning agent services at the Johns Prairie operations center. The commissioning agent will ensure that the building and its systems perform properly. The firm will also include documentation to achieve Leadership in Engineering and Environmental Design (LEED) certification. The contract has a not-to-exceed amount of $135,700.
Staff Reports
PUD 3 Finance Manager Annette Creekpaum reported on the status of the budget, ending June 30, 2010. June expenditures were $3.7 million. Expenditures for the first six months of the year were $27.9 million, or 50 percent of the 2010 budget. Revenue for June was $4.3 million. Revenue for the first six months of the year was $29.8 million, which is 53 percent of the 2010 budget.
Sherry Speaks, treasurer, said that the PUD ended the month of June 2010 with a reserve balance of $25.9 million. Total investments were $28.1 million.
Wyla Wood, PUD manager, reported that Standard & Poor’s this week announced a two-level upgrade from A- to A+ in the bond rating of the PUD. The upgraded credit rating, along with a previous improvement in bond ratings from Moody’s Investor Service, is expected to save PUD 3 nearly $1 million in finance costs over the 30-year term of a bond sale this summer. In April, Moody’s announced an upgrade in PUD 3’s rating from A2 to AA3.
Wood stated that site preparation for the Johns Prairie operations center is nearly complete. The project was awarded to Zephyrs’, Inc. of Allyn. The original bid amount was $243,000 plus taxes, or approximately 45 percent of the engineer’s estimate for the job.
Wood said that bid opening for construction of the Johns Prairie operations center is scheduled for Wednesday, July 14 at 3:00 PM in the PUD 3 auditorium.
Commissioners approved a recommendation to reschedule the July 20 commission meeting to 1:00 PM on Wednesday July 21 in the PUD 3 auditorium. The change will coincide with an anticipated sale of bonds to fund several capital projects, including the Johns Prairie operations center; Mason substation rebuild; refinancing of previous bond sales at lower interest rates; potential relocation of PUD facilities related to the 1.5 mile Belfair SR 3 improvement project; and related finance charges. The sale is expected to be less than $70 million for a 30-year term.
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