Board Members present: Dorothy Anderson, Susie Smith, Jeff Osanka, Mike Dyer, and Sandra Bishop.

Others present: Randy Berggren, Gale Banry, Manda Bednarczyk, Ken Beeson, Tom Buckhouse, Mel Damewood, Marty Douglass, Garry Kunkel, Roseanna McArthur, Jim Origliosso, Laurie Power, Dick Varner, Debra Wright, John Yanov, and Krista Hince of the EWEB staff; Mark Rauch, member of the public; and Kim Kunkel, minutes recorder.

President Anderson called the meeting to order.

MINUTES

The Commissioners reviewed the minutes of the October 8 and 21, 1997, Work Sessions.

Referring to paragraph 5 on page 3 of the minutes of October 8, Vice President Smith said she recalled using the terms "traditionally female-held jobs" and "traditionally male-held jobs." She requested a review of the audio tape to confirm this. (A subsequent review of the audio tape confirmed that Vice President Smith's recollection was correct and that she had been misquoted).

Referring to paragraph 1 on page 5 of the minutes of October 8, President Anderson requested that sentence 5 be amended to state "In addition, she expressed support for obtaining employee input about what is important in terms of benefits."

Referring to paragraph 2 on page 3 of the minutes of October 21, Vice President Smith requested that sentence 1 be amended to state "Vice President Smith said she views EWEB's mission, Key Result Areas, and organizational goals and values as being directly related to citizen's interest; however, the proposed model seems to present these as pulled apart from the citizens as customers."

Vice President Smith moved, seconded by Commissioner Osanka, to approve the minutes of the October 8 and 21, 1997 Work Sessions, as amended. The motion passed unanimously.

CORRESPONDENCE

General Manager Randy Berggren reviewed the following information items included in the meeting agenda packet: 1) memorandum concerning long-term financial strategies; and 2) EWEB's tree removal and trimming procedures. Mr. Douglass distributed copies of a draft letter from the Board to the Eugene City Council concerning the City's new right-of-way fees.

Mr. Berggren inquired as to Board members' availability to attend an additional work session on EWEB's 1998 Work Plan and Budget. Vice President Smith suggested delaying the public hearing on the budget until December 2 in order to provide the Board adequate time to discuss the matter. Mr. Berggren said Ms. Hince will poll Commissioners as to their availability to attend an extended lunch meeting.

PUBLIC INPUT

There was no public input.

WEYCO RATE CHANGES PURSUANT TO 1995 CONTRACTS

Referring to an October 30 memorandum included in the meeting agenda packet, Financial Rate Analyst John Yanov reviewed information concerning the proposed rate change for Weyerhaeuser, noting that on December 2 staff will request Board action on the matter.

Mr. Yanov explained the rate proposal, noting that staff is recommending rates designed to reduce Weyerhaeuser bills by $1,229,000. Relative to the sales forecast of $12,643,000 billed revenue will decrease by 9.7 percent annually. Mr. Yanov said the proposal includes a reduction in the number of summer months from 5 months to 4 months. The reduction is based on results of an analysis of average system power costs which indicate that August costs were similar to those in the winter season. The proposed summer period will run from April through July, which is commensurate with the "spring" runoff from the Northwest hydro system. Lastly, Mr. Yanov explained that while the proposal calls for no change in the demand charge, energy charges would decline by 13.7 percent.

ENVIRONMENTAL POLICY

Referring to an October 30 memorandum included in the meeting agenda packet, Environmental Manager Laurie Power reviewed the revised Corporate Environmental Policy, noting that the document was modified to reflect changes requested by Commissioners during a previous meeting of the Board.

Vice President Smith moved, seconded by Commissioner Osanka, to approve the EWEB Corporate Environmental Policy, as amended. The motion passed unanimously.

1997 THIRD QUARTER FINANCIAL STATEMENTS

Referring to an October 30 memorandum and attachments included in the meeting agenda packet, Accounting Analyst Debra Wright reviewed EWEB's third quarter financial results and impacts specific to Payroll & Benefits and the Water, Electric, and Steam utilities respectively.

Commissioner Dyer inquired as to the reason for the current surplus cash position of the Electric Utility. Mr. Berggren responded that purchased power costs are the primary contributor to the surplus cash position. He said that while the utility minimized its fiscal risk for a period of time, it is now in a position of considerable risk as it attempts to navigate the marketplace. Mr. Varner stressed the importance of maintaining an operating reserve in order to protect the utility from unforeseen factors such as insufficient snow pack or an increase in gas prices.

1998 TROJAN PROJECT BUDGET

Referring to an October 29 memorandum and attachments included in the meeting agenda packet, Energy Resource Projects Manager Ken Beeson reviewed the proposed 1998 Annual Operating Budget for the Trojan Nuclear Plant and the revised 1997 Annual Operating Budget for the Trojan Nuclear Plant. Mr. Beeson requested Board approval of the two documents.

Vice President Smith moved, seconded by Commissioner Osanka, to approve the 1998 Annual Operating Budget for the Trojan Nuclear Plant and the revised 1997 Annual Operating Budget for the Trojan Nuclear Plant. The motion passed unanimously.

ITEMS FROM BOARD MEMBERS

Commissioner Bishop announced that she was going to attend the upcoming Oregon Water Law Conference and would report back to the Board.

The meeting adjourned at 9:20 p.m.