8/17/99 Agenda

AGENDA

EUGENE WATER & ELECTRIC BOARD
SPECIAL BOARD MEETING
(WORK SESSION)
EWEB BOARD ROOM
AUGUST 17, 1999
5:30 P.M.

Financial Policy - Jim Origliosso, Treasurer

SPECIAL BOARD MEETING
7:30 P.M.

Agenda check (President Smith)
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
Review of 9^th Circuit Court of Appeals Decision on EWEB's Leaburg and Walterville Hydroelectric Licenses - Everett Jordan, Generation Manager; Gale Banry, Relicensing Project Manager; Laurie Power, Environmental Manager; Gail Greeley, EWEB Relicensing Attorney; and Don Haagensen, Cable Huston Benedict, Special Counsel (Presentation - 30 min./Discussion - 15 min./Information)
Power Risk Management Implementation - Debra Wright, Risk Manager (Presentation - 10 min./Discussion - 15/Action)
BPA Subscription Process & Strategy - Scott Spettel, Power Management & Planning Manager (Presentation - 10 min./Discussion - 20 min./Information)

Consent Calendar
Items for Approval
August 17, 1999

Minutes of the June 18-19, 1999 Board Planning Session, the July 9-10, 1999 Board Planning Session, and the August 3, 1999 Work Session and Regular Board Meeting.
Budget Amendment (No. 4): Interest Earnings. Interest rates for 1999 are lower than the budgeted rate of 5.50%. The actual interest earnings are averaging 4.90%. These rates are higher than the benchmark of a one year treasury bill which is currently 4.45% and rates are lower than EWEB has experienced since September of 1994.
Applies to1999 Budget

Projected Revenue: $1,965,000

1999 Budgeted Amount 2,400,000

Additional funds needed 435,000

Source of Funds: Unbudgeted operating reserves of the Electric and Water Utility. Staff Contact: Cathy Bloom, General Accounting, 344-6311, ext. 3277.

Budget Amendment (No. 7): Intergovernmental Agreement with Lane Council of Governments (LCOG) - Public Affairs. For implementation and three years operation of the Community Emergency Notification System. (CENS) is an advanced alerting system for the Lane County area using specialized computer software to access telephone numbers and regional geographic/map information. In the event of an emergency, a computer will call telephone numbers in an area and deliver a pre-recorded message and can deliver thousands of messages per minute. Total cost to EWEB is $29,000 over three years. The amount for the first year is $13,000, second year amount is $8,000; and third year amount is $8,000. The cost will be shared at a fifty percent level between the Electric Division and the Water Division. (Contact person: Marty Douglass, Public Affairs Manager, extension 3303)
Applies to 1999 Budget

Budgeted Amount 0

Additional Funds needed for the Project $29,000 over 3 years

% of Project Completed 0

Item is (not) budgeted under Jobs:

Budget amendment (No. 5):Corporate Services. The Board approved $2.2 M for the Y2K project. One million of that was to come from the accumulated assets. During the budgeting process last year, $1.2 M was actually put in the budget and the remaining $1M earmarked to come from reserves if needed. I request that $1M be formally moved from reserves to the 1999 budget. The latest estimate on the project is $2M., Roseanna McArthur, 341-8550.

Budgeted Amount $1.2 million

Projected Expenditures $1.0 million

Additional Funds Needed $1.0 million

Item is budgeted under Job 18417

Extension of Personal Services Contract - Electric Division - University of Oregon Solar Monitoring Lab. Contract extends the Eugene and Regional Solar Radiation and Meteorologcal Data Monitoring project for the 7/01/99-6/30/00 project year. Project is co-sponsored with BPA, PGE, and PacifiCorp. Provides resource data for evaluating solar electric generation potential in the Northwest (Resource Planning). Provides real time data to EWEB EMCS for power scheduling (Power Resources). Provides data for evaluating customers' energy management and solar energy applications. (Energy Management Services). Maintaining current contractor is desirable to assure continuity and quality of data collection, analysis, archival, and reporting. Total July 1, 1999 through June 30, 2000 contract: $58,426. Reimbursements from other utility partners: $35,660. Total EWEB obligations: $22, 660 (Contact person is Steve Hill, 484-2411, ext. 3130.)
Applies to 1999 and 2000 Budgets

Budget Amount $11,330 -0-

Additional funds needed -0- $11,330

Percent (%) of Project Completed* 33% 40%

Items is budgeted under Job #6876

(*June 30, 1999 marked end of year 5 of desired 15 year project)

Budget Amendment (No. 3) Direct Overhead Charge. This amendment would implement a 15 percent overhead charge (as opposed to the 35/40 proposed earlier), of all labor for work on or after August 1, 1999, which in turn reduces the amount of projected revenue. The reduction in revenue would cause us to draw the operating reserves in both utilities to support current authorized expenditures. (Contact person is Dick Varner, 484-2411, ext. 3299)

Budgeted Revenue $670,000

Projected Revenues $115,000

Additional Funds Needed $555,000