Board Members present: Dorothy Anderson, Peter Bartel, and Sandra Bishop. Commissioner Patrick Lanning was excused.

Others present: Randy Berggren, JoAnn Andersen, Tom Buckhouse, Ed Case, Dick Helgeson, Roseanna McArthur, Jim Origliosso, Jim Wiley, and Krista Hince of the EWEB staff; Eric DeFreest, EWEB's General Counsel; and Kim Young, City of Eugene Minutes Recorder.

Board President Anderson called the Special Board Meeting of the Eugene Water & Electric Board to order.

CONTRACT AWARD - CONFLUENCE WELLFIELD PROJECT

General Manager Randy Berggren reminded the Commissioners of the actions they took as the Contract Review Board in holding Holt Drilling and Jensen Drilling nonresponsive. That meant that GeoTech had submitted the lowest responsive bid. He indicated that if the Commissioners did not find GeoTech to have submitted a responsive bid, the contract would have to be re-bid, making it unlikely the construction schedule could be met.

Eric DeFreest, EWEB's General Counsel, reviewed the two responsive bids, submitted by GeoTech and Synder Equipment. He noted that Synder Equipment had not protested the bid award at this time.

Vice President Bartel, seconded by President Anderson, moved to concur with the staff recommendation to award the bid to GeoTech.

Referring to remarks made by Commissioner Bishop previously regarding EWEB's performance in the process, Mr. Berggren clarified that he did not believe that EWEB made a procedural error. He said that the notice of intent indicated to bidders that the utility would continue to review bids for completeness and responsiveness. He said it was not a procedural mistake to issue the notice of intent and then revoke it.

Commissioner Bishop indicated she would vote against the motion because she did not feel as though she was in a position to determine whether GeoTech would be able to carry out the contract. She believed that there were irregularities in the process that called the result into question. Concerns were raised by more than one bidder about the terminology and language of the bid specifications. For example, two of four bidders apparently had difficulty understanding what the requirement was for the termination statement. Other small errors also concerned her. For example, apparently the consultants clarified information with some bidders and not others. Commissioner Bishop thought those concerns sufficiently important to justify rebidding the contract.

Vice President Bartel did not share Commissioner Bishop's interest in reopening the process. He said that the successful completion of technical forms were the responsibility of those filling them out. It was not the responsibility of the agency issuing the form. The agency had the responsibility to assure the form was relatively clear. He was unwilling to put off construction, as that could cost EWEB both more money and more time.

President Anderson concurred with the remarks of Vice President Bartel. She thought that GeoTech should be rewarded for doing a good job in its bid submission. She found the bid to make sense.

Commissioner Bishop determined from staff that if the bid award was made that day, construction would start within ten days. Mr. DeFreest anticipated the first drilling would occur within ten weeks. Reopening the bid process would take approximately two months.

Commissioner Bishop asked what the protesting firms were likely to receive in court as a remedy. Mr. DeFreest said he could not speculate on what they were likely to receive in the absence of the details of an actual lawsuit.

Mr. Berggren indicated his confidence that EWEB could defend itself in the case of a challenge to the appropriateness of the award.

Commissioner Bishop asked if the protesting firms could take legal action to stop work on the project. Mr. DeFreest said theoretically, yes. The firms could request injunctive relief, although he was unsure what argument that they could make to do and questioned their legal standing to bring such an action.

Commissioner Bishop indicated she would still vote against the motion as she continued to support reopening the bid process. She though that there were too many irregularities on the part of EWEB for her to support the motion.

The motion passed, 2:1, Commissioner Bishop voting no.

President Anderson adjourned the meeting at 1:22 p.m.

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Assistant Secretary President