Board Members Present: Dorothy Anderson, Peter Bartel, Patrick Lanning, and Sandra Bishop.

Others present: Randy Berggren, JoAnn Andersen, Marc Anderson, Terry Bewuette, Tom Buckhouse, Mel Damewood, Marty Douglass, David Embelton, Dick Helgeson, Jay L'Estrange, John Mitchell, Roseanna McArthur, Mat Northway, Jim Origliosso, Dick Varner, Jim Wiley, and Krista Hince of the EWEB staff; Joe Sams, City of Eugene Minutes Recorder, and members of the public.

AGENDA REVIEW

President Anderson called the Regular Board Meeting to order at 7:45 p.m. There were no changes to the agenda.

CONSENT CALENDAR

Minutes:

1. November 20, 2001 Work Session, and the December 4, 2001 Work Session and Regular Board Meeting

Business Service Agreements

2. Sybase Database Management System - Information Services - Corporate Services - $25,321.50

3. The Ulum Group - Energy Conservation Advertising - Public Affairs - Corporate Services - $114,067.12

4. OBEC Consulting Engineers, Inc. - Engineering and construction inspection services for City View 800 Reservoir No. 2 - Water Division - $10,440

5. Delta-T, Inc. - HVAC Maintenance Program - Energy Management Services - Customer Service - $20,000

6. Proctor Engineering Group - HVAC Maintenance Program - Energy Management Services - Customer Service - $40,000

7. The Energy Outlet - Energy Management Services - Customer Service -$90,000

8. ECOS Consulting - Energy Star Lighting Program - Energy Management Services - Customer Services - $600,000

9. GeoTech Explorations, Inc. - Confluence Wellfield Development - Bid Package #1 - Groundwater Development Project - Water Division (Pulled from Agenda)

10. Cascade Pacific Resource Conservation and Development - McKenzie Watershed Protection Program - Environmental Management - Corporate Services - $24,000

11. Dominion Power Services, Inc. - Maintenance Services Contract Renewal - Smith Falls Hydroelectric - Electric Division - $1,822,810 for five years

12. Heritage Research Associates, Inc. - Leaburg/Walterville Relicensing - Electric Division - $27,860

President Anderson noted that No. 9 had been removed from the Consent Calendar action items.

Commissioner Bishop pulled No. 1.

Vice President Bartel raised concern over the Energy Outlet not paying rent to the utility.

President Anderson pulled No. 3.

Vice President Bartel raised concern over the costs associated with item 3.

Vice President Bartel, seconded by Mr. Lanning, moved to approve the remaining items on the consent calendar. The motion passed unanimously.

ITEMS FROM BOARD MEMBERS

Vice President Bartel complimented the effectiveness of the groundwater public information session that had recently been held. He stressed the importance of being able to answer the public's questions/concerns effectively and to reassure the public that groundwater would be of comparable quality with EWEB's primary water source.

Commissioner Bishop called for a verification of costs associated with televising EWEB's Board meetings on Metro TV.

CORRESPONDENCE

General Manager Randy Berggren noted there was a open forum on steam strategy on this upcoming Thursday night at 7 p.m.

Mr. Berggren confirmed there was a joint meeting with the City Council on February 25, at 5:30 p.m.

Mr. Berggren said he had set up the next All Utilities Board Meeting on March 6, at 5:30 p.m. He noted that the Vice President of Bonneville Power Administration, Vickie Van Zandt, had agreed to attend and speak to the utilities regarding regional transmission organizations and RTO's.

Mr. Berggren stressed the importance of being as specific/clear as possible regarding bid documents for contracts.

Mr. Berggren noted there was a Board Governance Meeting on February 26.

Mr. Berggren said the February 12 Work Session would have an update on the budget. He noted that there would be further discussion on February 19. He added that there would be an update on the telecommunications project.

PUBLIC INPUT

David Embleton, 82766 Rogers Road, Creswell, said he had been doing a lot of public education around the Hayden Bridge Filtration Plant. He said he had developed a new way of teaching kids who were touring the plant. He stressed the importance of education and outreach for kids on the subject of water source protection.

Cheryl Haliman, 1324 Hammet Road, raised concern over the rate increase recently implemented by the Board. She noted that her bill had risen by over 100 percent.

President Anderson commented that the rate increase was in response to Bonneville Power Administration's rate increase and noted that BPA would likely raise its rates again in the following few months.

GROUND WATER BOND AUTHORIZATION

Fiscal Services Supervisor Dick Varner provided a background presentation on the groundwater bond authorization. He said the current cost estimate for the first phase was $11 million over five years. He noted that there was an option to finance the cost over 30 years or pay for the bond out of rates over the five years. He said staff was recommending an URBA process and financing the bond over 30 years. He asked for Board direction whether action should be taken as a Regular Agenda item or as an item in the Consent Calendar at a future meeting.

President Anderson expressed her preference, to general consensus, for taking action under a specific Agenda item during a meeting.

There was general Board consensus to provide a high degree of public education and opportunities for input concerning the issue.

ITEMS PULLED FROM THE CONSENT CALENDAR

Regarding the November 20, 2001, minutes on page 5, Commissioner Bishop said she had only been referring to the telecom project's short term borrowing authority.

Regarding the December 4, 2001 Work Session on page 1, Commissioner Bishop said there was little or no financial risk to EWEB to proceed with the project.

Commissioner Bishop, seconded by Commissioner Lanning, moved to approve the minutes listed in the consent calendar. The motion passed unanimously.

Regarding Item 3 on the consent calendar, President Anderson raised concern over the expense.

Mr. Berggren said, at that time, there was a record keeping program on energy conservation but noted that the advertising for the program needed to be paid for. He said that the same amount of money did not need to be allocated in the future.

John Mitchell, Communications Coordinator, noted that the conservation program had worked well in that the public was conserving more energy.

Commissioner Bishop, seconded by Commissioner Lanning, moved to approve No. 3 on the consent calendar. The motion passed unanimously.

The meeting adjourned at 8:40 p.m.

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Assistant Secretary President