ML022350429

Declaration of My Nguyen in Support of Motion for Authority to Incur Miscellaneous Implementation Expenses

ML022350429
Person / Time
Site:	Diablo Canyon
Issue date:	08/15/2002
From:	Minh-Thuy Nguyen Pacific Gas & Electric Co
To:	Office of Nuclear Reactor Regulation, US Federal Judiciary, Bankruptcy Court, Northern District of California
References
01-30923 DM, 94-0742640
Download: ML022350429 (5)

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9 10 11 12 13 HOMRD tco-14 efRA.*JN "15 16 17 JAMES L. LOPES (No. 63678)

JANET A. NEXON (No. 104747)

JULIE B. LANDAU (No: 162038)

HOWARD, RICE, NEMEROVSKI, CANADY, FALK & RABKIN A Professional Corporation, Three Embarcadero Center, 7th Floor San Francisco, California 94111-4065 Telephone:

415/434-1600 Facsimile:

415/217-5910 5K?g Attorneys for Debtor and Debtor in Possession PACIFIC GAS AND ELECTRIC COMPANY UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION In re PACIFIC GAS AND ELECTRIC COMPANY, a California corporation, Debtor.

Federal I.D. No. 94-0742640 Case No. 01-30923 DM Chapter 11 Case Date:

September 4, 2002 Time:,9:30 a.m.

Place:

235 Pine Street, 22nd Floor San Francisco, California DECLARATION OF MY NGUYEN IN SUPPORT OF.,

MOTION FOR AUTHORITY TO INCUR MISCELLANEOUS IMPLEMENTATION EXPENSES 44-4 1 4j6SJL DECLARATION OF MY NGUYEN 18 19 20 21 22 23 24 25 26 27 28 Aoct1

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I, My Nguyen, declare:

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I am employed by Pacific Gas and Electric Company ("PG&E-), the debtor and debtor-in-possession in this Chapter 11 case. I hold the position of Principal Project Manager ihPG&E's General Services Department (the General Services Department is responsible for PG&E's facilities, fleet and materials management). In this position, I am responsible for managing the implementation of PG&E's proposed Plan of Reorganization (as amended from time to time, the "Plan") with respect to General Services. I oversee and "supervise the General Service teams assigned to Plan implementation, and coordinate and facilitate schedule and budget activities and tasks related thereto.

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This declaration is submitted in support of PG&E's Motion for Authority to Incur Miscellaneous Implementation Expenses (the "Motion"). Defined terms used herein shall have the meanings set forth in the Motion. I make this declaration based on personal knowledge, except where otherwise indicated, and if called as a witness, could and would testify competently to the matters set forth herein.

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Facilities. Immediately after the Plan is implemented, many of the New Entities' operations will be carried out in space obtained, on a temporary basis, from PG&E, while more permanent space for the New Entities is located and made ready for occupancy.

In many cases,'employees of both PG&E and the New Entities may work on the same floor or within the same work area. However, due to the confidential and sensitive nature of certain work and work materials.(e.g., financial planning and work involving confidential customer information or attorney-client privileged material), certain groups of employees of PG&E and the New Entities cannot be located within the same floor or work area. PG&E has identified suitable space for these employees, one of several floors leased by PG&E at 123 Mission Street, San Francisco, which is not currently in use by PG&E as office space.

At present, this floor is-not ready for occupancy and requires tenant improvements. PG&E estimates that it will take approximately four months to prepare the floor for occupancy; each of the projects described below are incremental steps in this process, listed in the order in which the work will be performed. PG&E employees will perform the necessary design DECLARATION OF MY NGUYEN 1

work, but ouitside consultants are needed to complete the preparation of this floor for 2

occupancy, as follows:

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a.

Floor Prepaiation Work:,-ML Office Services will clear the floor and 4

prepare it for the constniction work described below, for an estimated cost of S1,200.

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Construction Work. P'aradigm General Contractors, a construction firm, "6

will adjust the interior spaces to' allow for furniture placement, construct partitions and make 7

other necessary tenant improvements to prepare the space for occupancy by the time of 8

separation. The estimated cost for the construction work is-$115,000.

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Office Furniture. Contract Office Group, an office furniture representative, 10 will provide anid install office furniture at an estimated cost of S175,500-.

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Telecommunications equipment. PG&E intends to purchase 12 telecommunications equipment froihi Anixter, Inc. at a total cost not to exceed $14,080.

HOWD 13 PG&E employees' will install the'equipment after the furniture has been installed.

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In'the event that the Plan is not confirmed, PG&E anticipates that it will be e*

15 able to use the office'space, office fuirniture and telecommunications equipment described 16 above for its own buriness purposes.

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Fleet Vehicle Transfer. PG&E estimates that approximately,2,500 of 18 PG&E's vehicles will be transferred to the New Entities.1 The process of transferring title to 19 tlhse vehicles must begin-so6n due to the -volume of transfers.,The transfers involve pulling 20 title records, preparing title transfer.d ocuments, correcting any errors in registrations or other 21 doc im6nts, preparing bills 6f sale, preparing and submitting a request to the bank for lien 22 "holder releases for the vehicles, and preparing a request to the Department of Motor 23 Vehicles to transfer the titles. Although-theactual requests to transfer title will not be 24 submitted to the DMV until after the Plan is confirmed, the preparatory.work must begin 25 promptly as it may takepi pto 3 months. -Therefore, PG&E requests approval for the 26 following expenditures:

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Prdiect Management. StanMiyamoto will provide project planning, 28 management and scheduling services for this project. Mr. Miyamoto currently works as an DECLARATION OF MY NGUYEN 1

employee of Source One but intends to form a consulting firm, Stan Miyamoto Consulting, 2

effective August 31, 2002. The total estimated cost for this work is S35,600. Pursuant to the 3

Motion for Authorization to Incur and Pay Certain Procurement Expenses, approved by 4

Order entered on May 20, 2002, the Court pieviously approved project management 5

expenses for Mr. Miyamoto. Through a misunderstanding of the coverage of the prior 6

Order, PG&E employees requested that Mr. Miyamoto also begin project management 7

services for the vehicle transfer project. As of August 15, 2002, PG&E has incurred S12,200 8

in expenses for Mr: Miyamoto's services on the vehicle transfer project. The foregoing 9

amount is included in the total estimate of $35,600 set forth above.

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Administrative Resources. PG&E will hire three consultants from Corestaff 11 Services, Inc. ("Corestaff'), a staffing agency, to pull title records, prepare title transfers, 12 clean up any errors in registrations, prepare bills of sale, and prepare lien holder release 13 documentation. The total'estimated cost for this work is S 19,200.

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Materials Distribution Center. The New Entities will require a centralized 15 materials distribution center ("Distribution Center") to maintain an inventory of necessary 16 equipment, parts and supplies, and io distribute equipment, parts and supplies as needed to 17 field offices. Immediately following the Plan Effective Date, PG&E intends to provide 18 materials distribution services to the New Entities out of its three existing centers, pending 19 completion of a separate Distribution Center for the New Entities. Currently, PG&E's 20 materials distribution centers use a customized inventory system, the Warehouse 21 Management System ("WMS"), which interfaces with SAP (the system that includes 22 accounting and purchasing functions). During the period in which the New Entities will be 23 served out of the same centers as PG&E, the New Entities will not use the WMS, which has 24 been customized specifically for PG&E and would be costly and difficult to adapt for use by 25 the New Entities. Rather, the New Entities will use the SAP Materials Management System, 26 a standardized part of the SAP system (PG&E employees will perform the services 27 necessary to configure the Materials Management System for use by the New Entities).

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PG&E requires the assistance of consultant Stan Miyamoto to provide DECLARATION OF MY NGUYEN 1

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ZCNG, 14 A.o.jd.a 15 16 17 18 19 20 21 22 23 24 25 26 27 28 project management services related to materials distribution, including the management, planning and scheduling related to making arrangements for the temporary use of PG&E's facilities by the New Entities, and the preliminary planning for locating and setting up a Distribution Center for the New Entities. Specifically, Mr. Miyamoto will assist PG&E personnel with the following activities: (a) planning the mechanics of moving goods and managing two separate inventories; (b) providing information to the PG&E employees working on the Materials Management System; (c) developing temporary work procedures for the distribution centers; (d) testing the Materials Management System for use by the New Entities; and (e) scheduling, tracking and reporting to PG&E on the progress of this project.

This work is expected to take up to 6 months to complete. PG&E seeks to employ Stan Miyamoto for the services described above for a total estimated cost of $30,000. Mr.

Miyamoto has already begun limited work on this project. As of August 15, 2002, PG&E has incurred $1,958 in expenses for Mr. Miyamoto's services. The foregoing amount is included in the total estimate of $30;000 set forth above.

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PG&E's standard contractual provisions in place (or to be included in any contracts to be executed) with the various consultants and consulting firms identified above do not guarantee future work or any minimum amount of revenue. PG&E also maintains the right to terminate the work at any time without cause, in which case PG&E is liable only for work performed to the date of termination plus costs reasonably incurred by the consultant in terminating any work in progress.

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The cost estimates set forth herein are based on PG&E's initial scoping of the project requirements and negotiations with the consultants who have been selected to perform the services.

I declare under penalty of perjury of the laws of the United States that the foregoing is true and correct, and that this declaration was executed at San Francisco, California on August 15, 2002.

WD 081502'1-1419905/1016740/vI DECLARATION OF MY NGUYEN *.2-