4/15/2003 Agenda

MINUTES

February 18, 2003 Special Board Meeting, and the March 4, 2003 Work Session

RESOLUTION
This resolution initiates the process of issuing the refunding and new money bonds contained in the 2003 Financial Tool Kit. The resolution requests the City of Eugene to authorize a total of $65 million of bonds of which $57 million is the refinancing of the Series 1994, Series 1996, and Series 1998A Electric System Revenue Bonds. The remaining $7 million of bond issuance is to finance the completion of the Walterville-Leaburg improvements.

The resolution sets out certain terms and conditions that the new bonds must meet and delegates certain authorities to the Treasurer to carry out the transaction. The resolution stipulates that the refunding of any given maturity must result in at least a 3% net present value savings in debt service for advance refunding bonds and 2% for current refunding bonds. The analysis and recommendations of our independent financial advisor, Seattle Northwest Securities Corporation, is attached as referenced in the body of the resolution. Contact is Jim Origliosso, 484-3753.
Contract with SSR Engineering for the design and construction management of a transmission line relocation project at EWEB's Smith Falls hydroelectric facility. Electric Engineering. This project is required because of Idaho Department of Transportation (IDOT) improvements to US-95 in Boundary County, Idaho. The design and construction costs are fully reimbursable by IDOT because EWEB owns right-of-way for the line. SSR Engineering is the original designer of the transmission line and has an office near the project site. The cost of this design work is not to exceed $39,500. Contact person is Rich Lehigh at 341-1831 or E-Mail Rich Lehigh

CONTRACT AWARD
Traid Mechanical Inc., Leaburg Tailrace Barrier - Electric Division. The new federal license for the Leaburg-Walterville hydroelectric project requires EWEB to construct a barrier at the confluence of the McKenzie River and the Leaburg power canal tailrace. The purposed tailrace barrier is to prevent adult salmon from being attracted to power canal tailrace flows and will enhance salmon migration up stream. EWEB received four bids. One bidder withdrew their proposal as a result of an error. EWEB staff and its consultant, Montgomery Watson Harza (MWH), recommends that the contract for the tailrace barrier be awarded to Traid Mechanical, Inc. for their low bid amount of $1,530,195. See April 8, 2003 backgrounder for additional detail. Contact person is Jerry Hohman, 484-2411, ext. 3428.
Landslide Technology, Inc. - Leaburg Canal Slide Management - Electric Division. Staff recommends executing a four-year contract with Landslide Technology for monitoring and slope stability analysis of the Leaburg Canal. Landslide Technology has been performing this work since 1987. They have detailed knowledge of the canal and have been involved in all mitigation and repair work associated with Leaburg Canal-bank stability. 2003 marks the 6^th year of a 10-year monitoring program to check for movements on landslide areas. Because they designed the monitoring program and have carried out all previous slope monitoring, staff recommends Board authorization of funds for the final four years of the program under a single contract. The cost of this work is not to exceed $86,400 over the four-year period. Monitoring work in 2003 is not to exceed $15,000. Contact person is Dean Ahlsten, 484-2411, ext. 3210.
Stillwater Sciences, Montgomery Watson Harza (MWH), and CH2M Hill - Carmen-Smith Relicensing, Leaburg-Walterville Relicensing, Other - Electric Division. EWEB staff recommends entering into contractual agreements with Stillwater Sciences, Montgomery Watson Harza (MWH), and CH2M Hill for Hydroelectric Environmental Studies and Quality Assurance review of Studies for the Completion of Carmen-Smith Hydroelectric Projects Relicensing and Post Monitoring, as well as Environmental Studies for the Leaburg-Walterville Post Construction Monitoring, and General EWEB Environmental Support.

A Request for Proposal (RFP) solicitation was prepared and advertised for the consulting services referenced above. Proposals were received and evaluated based on each firm's qualifications, and the three highest ranked firms, whose qualifications best meet EWEB's needs, were selected. Staff recommends awarding contractual agreements to these three firms. As studies are determined, staff will engage the best qualified firm, of these three firms, to do the work.

These contracts with the three firms listed above define the contractor staff, costs (hourly rate of pay, etc.), terms and conditions and overall scope of work. Individual Work Order Contracts will be negotiated and written to any of the three Contractors during the course of the project, and will define the specific Statement of Work and total Not-to-Exceed cost for each Study & Q&A Review performed during the project. Total cost of all Work Order Contracts written during the 5-year term of these contractual agreements is estimated to be approximately $3 million dollars. For more detailed information please refer to the April 9, 2003 Board Background Memo associated with this issue. Contact person is Catrin Van Donklelaar, 484-2411, ext. 3214.
Engineered Monitoring Solutions (EMS) - Early Warning Dam Breach System - Electric Division. Staff solicited RFP's for the design and supply of materials for a dam breach emergency warning system at Trailbridge and Smith reservoirs. Installation will be done under separate contact. EWEB is required by the Federal Energy Regulatory Commission (FERC) to install this system by September, 2003. The system consists of several monitoring points at each dam, and siren sites at Trail Bridge and Ollalie campgrounds that will provide for the notification and safe evacuation of people located in the immediate flood way. Staff recommends award of the contract to Engineered Monitoring Solutions who provided the lowest cost responsive proposal. Cost of the contract is $139,611. Contact person is Michael McElroy at 341-1843 or E-Mail Michael Mcelroy
Morris P. Kielty General Contractor, Inc. - Summit Terrace 1250' Pump Station Construction - Water Division. Award of the construction contract for the Summit Terrace 1250' Pump Station to Morris P. Kielty General Contractor, Inc. of Eugene, Oregon. Morris P. Kielty was the lowest responsive Bidder. Contract amount is $232,395. The pump station is included in the five-year capital improvement plan and was included in the 2003 budget that has been approved. The proposed contract award is approximately $23,000 higher than the amount allowed for in the project budget for this portion of the work. Staff believes that difference can be made up through removal of the portion of work associated with electrical upgrades at the existing Summit Terrace 1150' Pump Station that were included in this bid and other value engineering items. Contact for this project is Rod Wade @ 484-2411 ext.3216 or E-Mail Rod Wade

BUSINESS SERVICE AGREEMENTS
St. Vincent DePaul's - Energy Share - Customer Relations - Customer Services Division. The cost of administering the Enhanced Energy Share program is $90,000 per contract with St. Vincent DePaul's from January, 2003 through June 30, 2003. This amount is budgeted to administer the program until the new RFP is done and a vendor is selected. Contact person is Chuck Dalton, 484-2411, ext. 3305.

INTERGOVERNMENTAL AGREEMENT
Oregon State University, Department of Geosciences - Water Division. Oregon State University's Department of Geosciences is conducting basic research to develop a better understanding of the volume, source area, quality, age of the water, and patterns of discharge associated with the multiple springs that feed the McKenzie River. OSU research staff recently obtained a federal grant to fund a portion of this work, and is seeking a matching grant from EWEB to allow this research to proceed in the coming year. Staff regards this research as integral EWEB's continuing reliance on the McKenzie as a source for drinking water and power generation. It also furthers our own understanding of impacts associated with periodic drought cycles and possible long term decreases in snow pack due to global warming.
Staff has reviewed the OSU proposal and we have developed a suitable Intergovernmental Agreement (or "IGA") that defines the scope and anticipated deliverables for work to be undertaken through April, 2004. We recommend EWEB sponsorship and funding for the project, and request Board authorization to execute the IGA. Our share of the project costs is $22,895, and will be charged to 2003 approved budgets for water supply planning. Contact person is Dick Helgeson, Water Division Director, at 484-2411, ext. 3960.