1. Employee Benefits Request For Proposal - Jean Meyers, Human Resources Manager, and Laurie Muggy, Human Resources Specialist II (Presentation - 20 min./Discussion - 40 min./ Information)
2. Electric/Water Rates, John Yanov, Senior Financial/Rate Analyst- (direction from Public Hearing - 60 min.- John Yanov)

1. Agenda check (President Anderson)
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. Public input
6. Employee Benefits RFP - Jean Meyers and Laurie Muggy (Presentation - 10 min./Information - 10/Action)
7. Final Legislative Report - Libby Henry, Legislative Representative - Presentation - 20 min/Discussion - 10 min./Information)
8. Wanapum/Priest Rapids Contract status - Scott Spettel, Power Management and Planning Manager (Presentation - 10 min./Discussion - 20 min./Information)
9. Groundwater Development Status - Jay Bozievich, Senior Engineer (Presentation - 20 min./Presentation - 10 min/Information)
10. Items removed from Consent Calendar

• Minutes of the July 3, Work Session and Regular Board Meeting, the July 10 Special Board Meeting/Public Hearing, and the July 17, 2001 Work Session and Special Board Meeting

BUDGET AMENDMENTS

• Budget Amendment #3 - Santa Clara Reservoir Cover/Liner Replacement - Water Division. Unbudgeted for 2001, the Santa Clara Reservoir Cover Study conducted in early 2001 recommended immediate replacement of the 25-year-old cover. Water Engineering Solicited a RFP for Engineering and Construction Management Services and is recommending an award to Montgomery-Watson-Harza. The budget amendment covers costs that will be incurred in 2001 for consulting services, internal labor and direct charges related to the project. Funds will be covered by construction bond monies. The remainder of work will be budgeted through EWEB's 2002 budget process. Amount of budget amendment is $150,000. Contact person is Mel Damewood, 484-2411, ext. 3218.
• Budget Amendment #4 - Groundwater Development - Water Division. Budgeted in O&M for 2001, Water Engineering has accelerated the Groundwater Development project in 2001 under Board direction. This requires a change from spending monies on the O&M side to the Capital Budget.

Water Engineering is requesting that the unspent portion of the previously authorized O&M job (number 19058) be transferred to the new Groundwater Capital Job (Number 22546). The total amount of the transfer should be $99,770 from O&M to Capital. (EWEB labor - $34,900, Testing - $15,000, and Consulting - $49,870).

Since the project is being accelerated, additional monies will be needed for engineering services. Internal labor will also shift from budgeted O&M to capital, which should remain near the same levels. The total amount of new capital budget is $136,000. Contact person is Mel Damewood

• Budget Amendment #5 - Hayden Bridge Reservoir, Pump Station and Electric Upgrade - Water Division. Construction of the project is anticipated to move quicker than what was originally scheduled. Overall project cost has been adjusted from $20 million $15 million because of excellent construction bids. We are anticipating that an additional $400,000 will need to be budgeted due to contractor activities this year. The budget amendment amount is $400,000. Contact person Mel Damewood.

BUSINESS SERVICE AGREEMENTS

• Montgomery Watson Harza - Confluence Wellfield Design and Implementation - Water Engineering - Water Division. This contract award provides for the design of the confluence wellfield and construction inspection services. The preliminary design will begin this year with test wells being drilled next spring. The wellfield will be constructed in two phases with a scheduled completion date of fall 2004. Montgomery Watson Harza teamed with Golder Associates submitted the highest scoring proposal in response to the RFP, and the evaluation committee recommends they be awarded the contract. The contract amount is $1,069,005, which will cover work over a four-year period. The 2001 budget included $40,000 for engineering services this year under O&M, the expected contract cost this year under the Capital budget if $75,000. The contract person for this project is Jay Bozievich, 684-4759
• Northwest Energy Efficiency Alliance (NEEA) - Public Purpose - Energy Management Services - Customer Services. This is an authorization to start regular quarterly payments to support the Northwest Energy Efficiency Alliance (NEEA). Funding for this regional energy efficiency market transformation organization comes from the twelve major public and private utilities in the Northwest and from the Bonneville Power Administration (BPA). Starting in 1999, and extending through September 2001, EWEB's entire contribution was paid for by BPA and included within their current rate case. Starting in 1999, and extending through September 2001, EWEB's entire contribution was paid for by BPA and included within their current rate case. Starting this October, BPA's funding of NEEA on EWEB's behalf will cover only the portion of our contribution represented by our wholesale purchases from BPA. The non-BPA covered portion of our retail load represents a direct contribution from EWEB to NEEA of approximately $25,000 per quarter. This contribution by EWEB qualified for 100% reimbursement within BPA's wholesale power bill discount program, the Conservation and Renewable Discount (C&RD) program. Under BPA's C&RD program starting in October 2001, one mill per kilowatt-hour of each BPA purchase will be already discounted when we purchase it. This discount will amount to approximately $1,000,000 (October through September) each year. To retain the discount EWEB must spend an equal amount in qualified activities. The funding of NEEA is a qualified activity. Contracted amount is $325,000 ($25,000 for 2001 and $300,000 for 2002, 2003, and 2004). Contact person is Mat Northway, 484-3765.
• Waterstop NW - Transmission Pumping & Storage - Water Division. This contract is for cleaning and sealing 115,000 square feet of reservoir tops. The original contract was awarded on a price per square foot basis for 50,000 square feet ($19,500). This work will be split between 2001 and 2002. There is $35,000 budgeted in 2001 and the remainder of the work will be budgeted and completed in 2002, totaling $50,000. Contact person is Mel Damwood, 484-2411, ext. 3218.
• PricewaterhouseCoopers, Inc., - Finance Division. For the 2001 annual audits of the Electric and Water Utilities and Trojan project for $73,600 and $6,000 respectively. This is the second year of a three-year contract with PricewaterhouseCoopers, which contains the option to extend for two additional years. Contact person is Cathy Bloom, 484-2411, ext. 3277.
• BNY Western Trust Company - Trustee Fees for Bond Trust Accounts - Finance Division. For the 2001/2002 Trustee fees of $30,000 for Bond Trust accounts. Money is required to be held in trust in accordance with the Bond Resolutions. This is the last year of a five-year contract for trustee services. Next year we will be going out for an RFP for these services. Contact person is Cathy Bloom, 484-2411, ext. 3277.
• Coates Kenney, Inc - Actuarial Services - Finance Division. For the actuarial services totaling $27,000 for the valuation of the Post Retirement Medical Insurance Plan ($7,000), Supplemental Retirement Plan ($5,000) and ongoing consulting on PERS issues including review of contribution rates and litigation support for 2001 ($15,000). Contact person is Cathy Bloom, 484-2411, ext. 3277.