Mr. Mull reported that at the May 5, 1999 meeting of the Board, staff was authorized to proceed with the procurement of a 2 MW Diesel Generator. He further reported that one (1) bid was received and opened May 14, 1999 from CP&L in the amount of $617,071.00. As a matter of information, Mr. Clarke reported that CP&L attached a Master Services Agreement to the bid proposal, which otherwise met the requirements of the specifications. He further reported that in a conversation with CP&L some suggested changes were made to the Contract, and with these changes, he recommends approval. Mr. Mull stated that the project is budgeted in the CIP and will be financed by the 1999 Series Revenue Bond Issue at an estimated cost of $750,000.00.

A discussion followed regarding installation; why there was only one bid; whether the specifications were generic in nature, and if there is a contingency. Mr. Clarke stated that the specifications were very generic and CP&L is providing a turnkey installation of a 2400 volt, 2MW Caterpiller Generator and an Automatic Transfer Switch. Mr. Mull stated that if the bid is approved, it will be installed and in operation by the end of November. Ms. Field moved that the Board award the bid to CP&L in the amount of $619,071.00, subject to negotiation of a satisfactory contract between CP&L and the District. Mr. Pace seconded the motion. Mr. Venable asked for an explanation of the Maintenance Agreement. Mr. Mull stated that the District has the option of entering into an Operational Agreement with CP&L, whereby if the unit is not functioning on any day in which CP&L pulls their Interruptible Power Supply (IPS) rate, and is over the 75-days a year to do that, CP&L would not charge a penalty day. He further stated that the District will operate the generator for a year or so, then evaluate the need to enter into an Operational Agreement. With no further discussion, roll call vote was as follows: 9 Ayes; 0 Nays. Mr. Spell was absent during the vote.

With no further business, Mr. Aceto moved for adjournment at 1:10 p.m. Mr. Pace seconded the motion. Voice vote was unanimous in favor of the motion.

Jackie W. Bryson, Secretary/Treasurer