AGENDA

EUGENE WATER & ELECTRIC BOARD
SPECIAL BOARD MEETING
(EXECUTIVE SESSION)
EWEB BOARD MEETING
NOVEMBER 18, 2003
5:30 - 6:30 P.M.

  1. Pursuant to ORS 192.660(1)(d) to conduct deliberations with persons designated by the governing body to carry on labor negotiations - Randy Berggren, General Manager

    WORK SESSION
    6:30 - 7:30 P.M.

    1. Reserve 2004 Board Strategies and beyond - Dick Varner, Fiscal Services Supervisor (60 min.)

    SPECIAL BOARD MEETING
    7:30 - 9:30 P.M.

    1. Agenda Check (President Lanning)
    2. 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.)
    3. Items from Board Members (5 min.)
    4. Correspondence (5 min.)
    5. Board Agendas (10 min.)
    6. Public Input
    7. 2004 Budget - Dick Varner, Fiscal Services Supervisor (Presentation - 10 min./Discussion - 5 min./Information)
    8. Public Hearing on 2004 Budget
    9. Bill Remittance Processing - Mark Freeman, Credit & Collections Supervisor (Presentation - 15 min./Discussion - 15 min./Information)
    10. Board Governance - Randy Berggren, General Manager and Debra Smith, Telecommunications Project Manager (Presentation - 25 min./Discussion - 35 min./Information)
      °       2004 Draft GM Goals
    11. General Manager's Performance Agreement - Patrick Lanning, President (Presentation - 5 min./Discussion - 5 min./Action)
    12. Items removed from Consent Calendar

      Consent Calendar
      November 18, 2003

      MINUTES

      1. Minutes from the September 16, 2003 Special Board Meeting

        BUSINESS SERVICE AGREEMENTS
      2. McKenzie Willamette Hospital - HR, Wellness & Safety - Human Resources - Corporate Services. Sole Service Provider (exemption approved 10/30/00; extend existing 1/1/01-12/31/03 contract through 12/31/05) Contractor provides onsite RN/Wellness Coordinator and Physical Therapist for medical, wellness & ergonomic programs. Other services include Medical Review Officer; MedExpress first aid kit maintenance, DOT Drug & Alcohol Compliance Testing, Medical Screening & Immunizations, Pre-Employment Evaluations, confidential records management and utilization/trend reporting. This has been budgeted for in the 2003/and draft 2004 budget. Contract amount not to exceed $150,000 per year. Contact Jean Meyers, 484-2411, ext. 3015.
      3. Neighborhood Economic Development Corporation (NEDCO) - Water System Development Charge Grant Request - Santa Clara Glen Project (NEDCO) - Interagency Housing Policy Board - Water Division. In accordance with established procedures, the Lane County Interagency Housing Policy Board has requested a $24,180 grant to offset Water System Development Charges for 13 lease-to-own single-family dwellings near Green Lane in Santa Clara. Prior Board resolution and interagency agreements provide for annual consideration by EWEB of up to $100,000 in SDC grants for qualifying low income housing projects, subject to availability of funds and Board approval. This project is being built by the Neighborhood Economic Development Corporation (NEDCO), a local non-profit low-income housing developer, and meets the Board's established eligibility criteria. Only one other such request for $7,440 has been approved thus far in 2003, leaving ample room for Board consideration. Staff recommends approval of this grant request with funding from available surplus water operating reserves. Contact person is Dick Helgeson, Water & Steam Division director, E-Mail Dick Helgeson or 484-2411, ext. 3960.
      4. Group 1 Software - Develop web-based electronic Bill Presentment and Payment (EBPP) - Information Services - Customer Services Division. Contract Award for the purchase of additional Group 1 software products that will add to existing DOC1 bill print capability by allowing exact bill images to be presented via the Internet, and allow customers to pay bills electronically, and award of Annual License Agreement (renewable for up to 5-years) for all Group 1 software products, including those mentioned above. Request approval of annual license agreement in the amount of $49,500 per year of $247,500 over the 5-year period, and a on-time purchase fee of $19,000 (which includes installation and training) for the additional software products. (This addition falls within the amount budgeted for FY2003, so no additional funds will be needed.)

        RESOLUTIONS
      5. Resolution #3006 - Authorizing Issuance of a Standby Line of Credit for Power Supply Contingencies - Finance Division. Staff is proposing a less expensive alternative to maintaining an ongoing commercial paper program. Now that the commercial paper is fully paid off EWEB expects to be in a reserve replenishment mode. Ongoing maintenance of the commercial paper program carries annual fixed costs for liquidity support. By switching to a standby line of credit most of these fixed annual costs can be avoided while still having timely availability of up to $30 million for power supply emergencies. The fees for this resolution are in the 2003 budget. Contact person is Jim Origliosso, 484-3753.
      6. Resolution #3005 - Fiscal Services - Finance Division. Last fall, the Board approved a Resolution (#2007)to allowing the Power Risk Management Committee (RMC) to waive EWEB's rights under Sections 205 and 206 of the Federal Power Act for certain limited hedging transactions. With changes in the industry, parties are requesting more and broader waivers under 205 and 206. Given EWEB's position in the market, staff is recommending that the authority to waive 205 and 206 protections by the RMC be broadened (See Memo in Board packet.) Contact person is Dick Varner, 484-2411, ext. 3299.

        BPA SLICE TRUE-UP COSTS
      7. Pacific Northwest Generating Cooperative (PNGC) - Arbitration costs for BPAs FY 2001-2002 Slice True-up Charge - Electric Division. Our attorneys estimate that EWEB's share of the costs to pursue arbitration with BPA over the Slice True-up charge is about $65,000. About one-fourth of those expenses, $16,500, will be paid in 2003, the balance will be spent in 2004. This estimate includes the cost of filings at the 9th Circuit Court over whether that court has jurisdiction or not. The audit was not anticipated when the 2003 budget was prepared, and will be offset with a delay of other budgeted work. The 2004 arbitration costs are included in the 2004 proposed budget. Staff recommends the approval of $65,000 to complete this important work that has the potential to reduce the Slice True-up Charge. (See memo in Board packet.) Contact person is Scott Spettel, 484-2411, ext. 3404.

        TROJAN BUDGET
      8. Trojan Budget Approval - 2004 - Electric Division. 2004 Trojan Annual Operating Provides for Board approval of proposed 2004 Budget and the revised 2003 Budget for the Trojan Nuclear Plant. All EWEB costs related to project operation, maintenance and decommissioning as well as any EWEB internal costs related to oversight of the project have been and will continue to be paid by Bonneville in accordance with the EWEB-BPA Net Billing agreement for Trojan. (See background memo in Board packet.) Contact person is Ken Beeson, 341-3772,