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HomeMy WebLinkAbout6 Emergency Procurement AGENDA ITEM # 6 Page 1 of 3 MEETING DATE: December 20, 2021 TO: Board of Directors FROM: Brian C. Wright, General Manager SUBJECT: Consideration of Adopting Resolution 2021-22, declaring the storm event for the week of December 13, 2021 an emergency and approving emergency procurements as needed. APPROVED BY______________________________ Brian C. Wright, General Manager RECOMMENDATION: Authorize the General Manager to dispense with competitive bidding and ratify all ancillary procurements related to the storm event the week of December 13, 2021. BACKGROUND: The greater Truckee area experienced a strong storm event starting on the night of December 13th. As such, the District started experiencing widespread and extensive damage to our system due to the wet, heavy snow and winds that accompanied this major winter storm.⁠ On December 14, 2021, staff notified the Board of the need to call in for mutual aid. As with the many benefits the District receives from California Municipal Utilities Association (CMUA), a Mutual Assistance Agreement allows the District to call on neighboring utilities for assistance. Roseville Electric, part of the City of Roseville answered the call and sent two five-man crews, including trucks and equipment. The Roseville Electric Crews arrived on the night of December 14 th and began reconstruction and repair work on December 15th. Roseville Electric crews have been assigned critical repair and replacement work in the Donner Lake area on West Reed and East Reed Avenues. District electric facilities experienced heavy damage from falling trees resulting in multiple broken poles on these streets. The access along West Reed Avenue is especially challenging as it is a one-lane cul-de-sac road approximately 0.35 mile in length. The work includes the removal of Page 2 of 3 broken poles, cross arms, insulators, and unusable overhead wire. Due to space constraints, exacerbated by heavy snow and frozen terrain, many of the pole replacements will require excavations to be completed by hand tools or small mobile equipment. Subsequent to the installation of poles and cross arms, new conductor must be installed along large portions of these streets. Transformers and service connections must be re-installed to individual homes. Work is estimated to take 2 to 3 days at each location. December 15, 2021 forecasted a new storm with higher winds, however, the District only experienced one more outage at that time. In parallel, Wright Tree Service, the District’s tree contractor, pulled two additional crews from southern California to assist in the fallen tree efforts. Notably, the District also experienced some damage to the new Red Mountain Tank. A tree feel across the area hitting the tank. Staff is awaiting estimates for the damage. District Code 3.08.10 Procurement Authorization during an Emergency requires the General Manager to make a finding that a situation “poses an immediate risk to health, life, property or environment”. General Manager Wright made this determination and notified the Board on December 14, 2021 via email of the need for additional resources. District Code Section 3.08.100.4 also requires a special meeting for the Board ratification within seven days of the emergency, or at the next regularly scheduled meeting if that meeting is no more than 14 days after the action. The General Manager will update the Board on the progress at regularly scheduled meetings until the termination of the situation. The District’s engineering, operations and technical support teams have done an exceptional job in this event. Water crews continue to support in snow removal for not only District facilities but ensuring line crews can access infrastructure. Customer service personnel have been managing significant increases in call volumes and coordinating calls from the filed related to storm related outages. Additionally, staff has increased communication through social media, website, and continues working with the Town of Truckee Police Department to get vital information out to the community. FISCAL IMPACT: The total costs associated with this event are unknown at this time. However, staff is accounting for the activity to report back to the Board. - YTD November 2021, Storm Damage labor costs of $67,930 compares to annual budget of $156,000, leaving $88,000 for December. - Excluding this storm emergency costs, electric utility total operating expenses are forecast to be $585,000 or 2% over Budget for the year. This includes the approved incremental $500,000 over budget for wildfire defensible space efforts and purchased power forecasted to be over budget by $484,000 or 4% due primarily to demand increase. Page 3 of 3 - In 2017, storm related mutual aid costs totaled $131,976; Plumas-Sierra Rural Electric Cooperative $68,865 and City of Roseville Electric $63,111. - To the extent this storm emergency event’s costs cause the District to exceed operating expense budget, the operating reserve is reduced. The previously forecasted year-end 2021 operating reserve (general fund) balance of $6.2 million is established for items such as this event.