Board Members present: Sandra Bishop, Dorothy Anderson, Peter Bartel, Susie Smith and Patrick Lanning.

Others present: Randy Berggren, JoAnn Andersen, Tom Buckhouse, Dick Helgeson, Roseanna McArthur, Jim Origliosso, and Krista Hince of the EWEB staff; and Kim Kunkel, Minutes Recorder.

Due to the late arrival of President Bishop, Vice President Anderson called the Work Session of the Eugene Water & Electric Board (EWEB) to order.

ELECTRIC FORECAST

EWEB General Manager Randy Berggren reviewed the accomplishments of the previous Board Work Planing Session on resource acquisition and presented an overview of the agenda for the present Work Planning Session. He explained that the Board would be asked to further refine its prioritization of resource acquisition strategies in anticipation of EWEB's upcoming budget process.

Referring to a series of overhead displays, Jim Origliosso presented a brief overview of EWEB's current and projected budget constraints specific to the Electric Utility. He noted that a three percent rate increase is anticipated in 2002, and a six percent rate increase is anticipated in 2004.

PRIORITIZE STRATEGIES ACROSS GOALS

Referring to a number of large display charts, Mr. Berggren presented a brief overview of the list of strategies, prioritized during the previous Board Work Planning Session, listed under each of six resource acquisition goals.

(President Bishop joined the meeting at 6:30 p.m.)

Referring to a written document, Commissioner Smith reviewed her initial prioritization of the resource acquisition strategies, as she was absent from the previous Board Work Planning Session.

At the request of Mr. Berggren, and utilizing adhesive "dots," each Commissioner identified the 21 strategies they considered to be priorities.

The Commissioners and staff reviewed the results of the strategy ranking process in terms of the strategies which received three or more "dots."

Mr. Origliosso recorded the following comments/requests for follow-up that were issued by the Board:

1. Capture "high, medium, low" -- tabulate and provide back to the Board.
2. Sometimes zero "dots" reflects thinking that the item is a "done deal."

• Some listed items are new initiatives, and some are ongoing work. Next iteration will reduce resource allocation to work that is clearly new. Process would have more integrity if it was limited to those items that are clearly "new."

Mr. Berggren said staff would convert the results of the ranking process into a matrix that would be distributed and reviewed during the next Board Work Planning Session.

PROPOSED OPERATIONAL CHANGES

Mr. Berggren explained that each division was asked to identify, in priority order, proposed operational changes. Members of the staff reviewed the proposed changes relative to each division, as follows:

Electric Services Division:

1. Increase Tree Trimming
2. Influence Hydroelectric Regulatory Reform
3. Participate in Columbia River Fisheries Issues

Water Services Division:

1. Water Facilities Capital Plan
2. Water SCADA Upgrade
3. Atlantis Mapping Field Deployment
4. Water System Emergency Action Plan

All Other Divisions:

1. Reduce the Cost of Maintaining the Banner System
2. Improve Rate Making Tools
3. Automate Credit Card Payments
4. Provide an Intranet/Internet Infrastructure and Plan New Applications
5. Extend Automated Metering
6. Reduce Peak Electric Loads
7. Implement Biennial Budgeting
8. Utilize Internet to Transact with Customers
9. Improve Bill Appearance
10. Extend Human Resource Information System
11. Replace Fixed Asset Financial System
12. Create New Time Ticket Process

Mr. Origliosso recorded the following comments/requests for follow-up that were issued by the Board with regard to proposed operational changes:

1. Tree Trimming: reevaluate mix of inside/contractor crews--need to coordinate better with City on undergrounding initiatives. Reevaluate MOU and report back to the City. Test City commitment to create nodal areas in neighborhoods.
2. Columbia River Fish: EWEB policy development may be superceded by NMPS bill-- suggest EWEB focus on local fish issues.
3. Suggest replacing Water Division item three with 5-6.
4. Commissioners want old computers.
5. Need a conservation policy for large industrial customers. (3rd request)
6. According to customer input, improving bill appearance should be the highest priority of the items listed under "All Other Divisions."
7. Need a Special Board Meeting to have an open discussion of risks of implementing/not implementing the proposed operational changes.

The meeting adjourned at 9:20 p.m.

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Assistant Secretary President