1. 2000 Budget and Work Plan - Dick Varner, Fiscal Services Supervisor, Mel Damewood, Water Engineering Manager, and Gale Banry, Energy Resource Projects Manager

1. Agenda check (President Smith)
2. Approval of Consent Calender (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. Public Input
6. Water Systems Development Charge proposal - John Yanov, Senior Rate/Financial Analyst (Presentation - 15 min./Discussion - 10 min./Information)
7. First Public Hearing on Water Systems Development Charge proposal (15 min.)
8. Black & Veatch's five-year utility report on properties and operations - Bob Brady, EWEB's Independent Engineer and representative of Black & Veatch (Presentation - 10 min./Discussion - 10 min./Information)
9. Wind power rate for industrial and large commercial customers - Mat Northway, Energy Management Services Manager (Presentation - 5 min./Discussion - 5 min.)
10. Public Hearing on industrial and large customer wind rates (5 min.)
11. Wind power rate for industrial and large commercial customers - Mat Northway (Action)
12. Major Customer Meeting - Mike Logan, Section Manager of Commercial/Industrial Programs, Energy Management Services (Presentation - 5 min./Discussion - 5 min./Information)
13. Items removed from Consent Calendar

MINUTES

• Minutes of the September 7, 1999 Work Session and Regular Board Meeting

PERSONAL SERVICE CONTRACTS

• Black & Veatch, Phase I Telecommunications - Electric Division. This is for engineering and business related support and guidance in the development and design work associated with the Telecommunications Project Phase I and provided between February 1998 and November 1999. Work includes support and analysis for development of business strategies and business plan, electric utility telecommunication applications, Phase I design; special assistance in structural analysis of certain steel transmission towers and foundations; and completion of independent assessment of Phase design and final cost estimate. The major portion of this work has been completed. (Contact person is Ken Beeson, 341-3772)

Applies to

1999 Budget

Budgeted amount (Job No. 17738) $9,364,263

Amount of this contract $ 120,000

Estimated Year-End expenditures (Job No. 17738) $6,900,000

CONTRACT AWARD

• EA Engineering, Science and Technology, Inc. - Electric Division. EWEB has been designated by FERC as its non-federal representative for Endangered Species Act (ESA) Section 7 consultation with the federal fisheries agencies regarding EWEB's hydroelectric projects on the McKenzie River. EWEB is responsible for developing a Biological Assessment (BA) document that addresses project affects on ESA listed fish species, bull trout and spring chinook salmon. The EA team will prepare the BA ad assist EWEB with associated agency negotiations. The EA team was judged to be the most qualified by staff after a competitive RFP process. They were also the lowest bid. Funding will come from the Electric Division. Contract work will extend into FY 2000 and is being budgeted. Money for this contract will be from capital work deferred this year. (Contact person is Everett Jordan, 484-2411, 3205)

Applies to

1999 Budget

Budgeted Amount $ -0-

Additional Funds needed for this Project $ 50,000

% of Project Complete 0%

Items is not budgeted under Job No. 20180

• Arbor Tree Surgery - Tree trimming in EWEB service area - Electric Operations. A three year contract with the option to extend the contract to five years. (Contact person is Dave Koski, 484-2411, 3731)

Applies to

2000 Budget

Contract Amount $898,000

Item budgeted under Job No. 759

 

CONTRACT AMENDMENT

• Weyerhaeuser No. 4 Turbine Maintenance - Electric Division. The budget is $284,529 to fund a six-year planned maintenance overhaul of Weyerhaeuser No. 4 Turbine/Generator. Under our existing contract with Weyerhaeuser, all costs for the operation and maintenance of #4 turbine generator is shared equally with Weyerhaeuser. As a result, Weyerhaeuser will pay for ½ of the costs for the overhaul, including the overrun. The overhaul took place during July of this year and all invoices have been received. The total costs of the maintenance overhaul is $509,280, which is $224,751 over budget. EWEB's practice has been to budget for the predictable maintenance activities and deal with the extra work related to worn and damaged components as they are discovered during the overhaul. Staff is reviewing that practice for further maintenance cycles. Weyerhaeuser will reimburse EWEB for half of the $224,751 ($112,375) cost overrun. EWEB's portion will come from deferred maintenance. (Contact person is Everett Jordan, 484-2411, 3205.)

Applies to

1999 Budget

Total Cost of Overhaul $509,280

Budgeted Amount $284,529

Cost Overrun $224,751 (only half is EWEB's)

Additional EWEB funds needed $112,375

Percent of Project Completed 100%

BUSINESS SERVICE AGREEMENT

• PricewaterhouseCoopers - Electric and Water Utility and Trojan Project Annual Audits - Finance Division. This is the end of a five year contract with PricewaterhouseCoopers. We will be initiating a request for proposal for the 2000 audits. Contact person is Cathy Bloom, 484-2411, ext. 3277)

Applies to

1999 Budget

Budgeted amount $66,800 (for E & W utilities)

$ 6,240 (Trojan)

Additional Funds Needed $ -0-

Items are budgeted under Job Nos. 14931

and 334 (Trojan)

• Bond Trust Accounts - Financia Division. Agreement for the 1999/2000 Trustee fees of $30,000 for Bond Trust accounts. Money is required to be held in trust in accordance with the Bond Resolutions. (Contact person is Cathy Bloom, 484-2411, 3277)

Applies to

1999 Budget

Budgeted amount $30,000

Additional Funds Needed $ -0-

Item is budgeted under Job No. 238