AGENDA

1. Pursuant to ORS 192.660(1)(d) to conduct deliberations with persons designated by the governing body to carry on labor negotiations.
   
   

1. 2004 Budget Targets and Assumptions - Dick Varner, Fiscal Services Supervisor (Presentation and Discussion - 60 min.)
   

Agenda Check (President Lanning)
Approval of Consent Calendar (Items will be approved by one motion and without discussion. If discussion is required, specific items will be removed from the Consent Calendar and considered separately.)
Items from Board Members (5 min.)
Correspondence (5 min.)
Public Input
Financial Policy Proposal - Jim Origliosso, Treasurer (Presentation - 5 min./Discussion - 10 min./Action)
Finalist selection for applicants for Commissioner for Wards 6 & 7 and finalizing of questions (Commissioners - 45 min./Action)
Items removed from Consent Calendar

1. MINUTES
   Minutes of the May 29, 2003 Board Governance Meeting
   
   
   BUSINESS SERVICE AGREEMENTS
   
   
2. Umpqua Roofing Co., Inc. - Operations Building Reroofing - Facilities Services. This contract will provide a new roof, with insulation where appropriate, for the portion of the Operations Building over the Electric and Water Operations and electric dock staging area. This portion of the building has not been reroofed in excess of 20 years and continual problems with leaks have created a potential safety issue. The project was bid and Umpqua Roofing was the low bidder at $37,714.00. Funds for this project were budgeted in the approved 2003 budget. Contact Charlie Morris at 484-2411, ext. 3223 for further information.
   E-Mail Steve West
   
   
3. Advanced Security - Headquarters Area Security - Facilities Services. Increase existing contract by $37,500 for contract of the headquarters area security services until in-house staff has been hired. Money is budgeted in 2003. Amount is $37,500 Contact Charlie Morris at 484-2411, ext. 3223.
   
   
   
4. Northwest Youth Corps - Revegetation of Rodman/Kaldor Islands - Environmental Management - Corporate Services. EWEB wishes to contract with Northwest Youth Corps to maintain native vegetation on Kaldor and Rodman Islands. These islands are owned by EWEB and are located in the lower McKenzie River near the Walterville Power Canal intake. EWEB has developed a plan to enhance wildlife habitat that includes reducing non-native cover on these islands. By hand removal of selected areas of Scot's broom and blackberries, indigenous species will appear that will shade-out and replace the broom over time. The cleared sites are monitored by EWEB.
   
   
   This contract is for a three-year period. Estimated cost is $30,000. Cost of these services is estimated to be $10,000 or less a year; however, the actual cost of the contract will be based on the total number of hours it takes to complete the work and not on any fixed amount. The $10,000 budgeted for 2003 is in the budget. Contact person is Laurie Power, 484-2411, ext. 3313.
   
   
   
5. Heritage Research Inc. - Leaburg-Walterville Relicensing - Electric Division. The work to be performed under this amendment to the Heritage Research Inc. Business Services Agreement includes: 1) preparation of formal National Register Nomination for the Leaburg Development Historic District ($1-,500); 2) Determination of eligibility for the Walterville Development ($8,000); and 3) Finding of the Effect for the Modifications to the Leaburg Rollgates ($5,000).
   
   
   The Leaburg project has been determined eligible for historical designation. This scope of work is to complete the necessary registration. Interestingly, at the time of submission of the Leaburg-Walterville project license application in 1991, the Walterville project, although older than the Leaburg, was not eligible for historical designation since it had been rebuilt less than the mandatory 50-year period for historical eligibility. Now that 12 years have passed, the project as modified has reached the 50-year limit. The evaluation is to determine whether Walterville should be listed. Finally when we make modifications to the project, we must document the structures for historical purposes. The Leaburg Dam is considered historic, therefore, we must document the rollgates that are being strengthened. The total for these three tasks is $23,500 for the work to be performed over the next year. This amount is included in the 2003 budget. Contact person is Gale Banry, 484-2411, ext. 3413.
   
   
   
6. Dean Nordstrom - Union Campaign - Human Resources - Corporate Services. The Contractor will act in the capacity of lead negotiator/chief spokesperson for EWEB in the event potential collective bargaining is necessary. Contractor will follow EWEB's advisement with regard to the development of a labor management contract and meet with EWEB staff to discuss and plan specific labor related issues and activities. Contractor is familiar with the electric utility industry in the North West and has past bargaining experience with local 659 of the International Brotherhood of Electric Workers (IBEW). Cost of the contract is $100,000. Contractor's rate is $125/hr. Contact person is Jean Meyers, 344-6311, ext. 3015.
   
   
   
7. Clark Consulting - Actuarial Services - Financial Services. For actuarial services totaling $45,000 including the Supplemental Retirement Plan ($10,000); Post Retirement Medical Plan ($10,000); and ongoing consulting on PERS issues including review of contribution rates and litigation support for 2003 ($25,000). Contact person is Cathy Bloom, 344-6311, ext. 3277.
   
   
   
8. Feeney Wireless - Wireless computing consulting, equipment, maintenance and repair: - Electric and Water Divisions - Information Services - Corporate Services. Request award of contract to Feeney Wireless for consulting, provision of equipment (field laptops), installation, troubleshooting, and repair of installed mobile wireless systems. Feeney is the sole local provider of Panasonic Toughbook laptops, with pricing competitive with State contracts. The annual costs for services and equipment under this contract is estimated at $26,000 per year, or $130,000 over five years. Fees from this contract will be paid from budgeted projects in Electric and Water Operations. The contract is administered by Terry Bequette, Manager of information Services, to insure consistent wireless solutions across EWEB's operating entities. The contact person is Terry Bequette, 341-1885, or E-Mail Terry Bequette
   
   
   
9. Environmental Solutions - Leaburg/Walterville Relicensing - Environmental Management - Corporate Services. Environmental Solutions is providing support to EWEB for relicensing efforts: specifically, monitoring wetlands conditions nearby the Leaburg/Walterville hydro projects, monitoring replanted areas impacted by construction activities in '02 and '03, conducting wetlands delineations, developing mitigation plans for wetlands impacted by construction of new facilities, and reviewing fill and removal permit applications; and developing a replanting plan for the Leaburg power canal bank and the Leaburg fish screen security fence. Additional work will be required to assess wetlands' impacts due to the planned Leaburg Lake raise. This amendment covers work anticipated through 2004. The funds are budgeted. Contract amount is $30,000. Contact Laurie Power, 344-6311, ext. 3313.
   
   
   CONTRACT AWARDS
   
   
   
10. American AVK Company - Resilient Wedge Gate Valves - Water Division. Sealed bids were advertised and solicited in compliance with state of Oregon public contracting laws and EWEB Board adopted rules to establish a price agreement for Resilient Wedge Gate Valves. Bids were received and publicly opened at 2:00 p.m. on Tuesday, May 27, 2003. Four companies responded with offers (Consolidated Supply, USA Bluebook, United Pipe, and American AVK Company). These water gate valves are Warehouse stocked items for use by EWEB Water Division Construction crews as needed. This price agreement, if approved, will be for one-year with an option, at EWEB discretion, to renew for four additional one-year periods (total potential contract term; 5 years). Product will be purchased on an "as needed" basis to replenish warehouse stock. Exact purchase amounts are unknown and no guarantee has been made with the supplier. EWEB estimates that it will purchase approximately $55,424 of product each year of the contract, a possible total amount of $277,120 over the five-year period. This is a requirements contract (price agreement); exact total amount of this contract is based on need and not on any specific dollar amount. Staff requests the Board approval Resilient Wedge Gate Valves purchases as needed in accordance with the proposed price agreement terms and conditions Contact person is Ed Case, Purchasing, 344-6311, ext. 3272.
    
    
    
11. Oregon Envelope - Billing Envelopes - Office Supplies - Corporate Services. Sealed bids were advertised and solicited in compliance with state of Oregon public contracting laws and EWEB Board adopted rules to establish a price agreement for EWEB Billing Envelopes. Bids were received and publicly opened at 2:00 p.m. on Wednesday, June 4, 2003. Six companies responded with offers (American Eagle Graphics [$43,145.65], TechnaPrint [$31,391.50], WECSYS [$28,235.25], Mail Well Envelope [$26,237.60], Oregon Envelope [$25,812.15] and Tenison Envelope [$24,969.00]). Billing envelopes are a stocked item for use as needed. This price agreement, if approved, will be for one-year with an option, at EWEB's discretion, to renew for four additional one-year periods (total potential contract term; 5 years). Product will be purchased on an "as needed" basis to replenish stock. Exact purchase amounts are unknown and no guarantee has been made with the supplier to purchase any specific quantity. Staff estimates that the utility will purchase approximately $26,000 of product each year of the contract, a possible total amount of $130,000 over the five-year period.
    
    
    Recommendation for contract award is to the second lowest bidder. Oregon law (ORS 282.210) stipulates that all printing, binding and stationery work for a political subdivision thereof, shall be performed within the state. The lowest bidder, Tenison Envelope, performs all this work (tinting, die-cutting, and printing) in California, so, therefore, we must go with the second lowest bidder. This is a requirements contract (price agreement); exact total amount of this contract is based on need and not on any specific dollar amount. Staff requests the Board approval Billing Envelope purchases from Oregon Envelope as needed in accordance with the proposed price agreement terms and conditions. Contact: Ed Case, 344-6311, Ext. 3272
    
    
    
12. 3 Phase Energy Services - Electric Division. Staff seeks Board consent to enter into a three-year sale of Tradable Renewable Certificates (Tags). The proposed transaction consists of the sale of 50,000 Mwh's worth of Tags at a proposed price of $4.00 per Tag for each of the three years 2004, 2005, and 2006. Anticipated revenue would be $200,000 in each year. (See background memo in packet for further information and clarification.) Contact person is Jim Maloney, 344-6311, ext. 3417
    
    
    
13. Mountain Power Construction Company - Smith Falls Transmission Line Relocation - Electric Division. Staff recommends execution of a contract with Mountain Power Construction Company, Coeur d'Alene, Idaho, for construction services to relocate the transmission line at EWEB's Smith Falls Hydroelectric Project. This project is required because of Idaho Department of Transportation (IDOT) improvements to US Highway 96 in Boundary County, Idaho. The design and construction cost are fully reimbursable by IDOT because EWEB owns right-of-way for the line. Historically, Mountain Power construction has done all rebuilds on the line for Dominion Power (previous owner), and recent modifications for EWEB. The IDOT is familiar with and has already approved Mountain Power Construction's estimate for the work at $214,000. Contact person is Rich Lehigh, 344-6311, ext. 3211.
    
    
    RATE INCREASE FOR BULK WATER SUPPLY STATION
    
    
    
14. Water User Fee - Bulk Water Dispensing Station - Water Division. EWEB maintains a water dispensing station at 3402 West First Avenue (near 1st and Seneca) as a public convenience for non-municipal users to obtain and transport large volumes of water for domestic and commercial purposes. Water Operations is currently replacing the thirty-year-old station at this location at a budgeted cost of $27,000 with a new one that will become operational in mid-July. The current rate for station use of $1.00 per thousand gallons has not changed in many years, is far below the level required to recover associated capital and maintenance costs, and well under the rates presently charged for a standard domestic water service. Fiscal Services staff has evaluated the recent capital investment and ongoing maintenance costs associated with continued operation of the station. Based on this analysis, it is recommend that the rate for water dispensed at the station be increased to $4.00 per thousand gallons, effective July 16, 2003. A background memo concerning this proposed fee change is provided in the Board's information packet for the July 15 meeting. Contact person is Dick Helgeson, Water Division Director at 341-1871 or E-Mail Dick Helgeson
    
    
    ADMINISTRATIVE OVERHEAD FEES
    
    
    
15. Administrative Overhead - Fiscal Services - Financing Division. EWEB charges an administrative overhead on all of its capital and billable work. The current rate is 7 percent of the total cost of the project (with certain exceptions), and has been charged, at least, for the last 30 years. Staff recommends adjusting the current administrative overhead amount to 13 percent, effective January 1, 2004. (See background memo for further information). Contact person is Dick Varner, 344-6311, ext. 3299.