1. Wanapa Development Status - Ken Beeson, Energy Resource Projects Manager, Scott Spettel, Power Management and Planning Manager, and Jim Origliosso, Treasurer (60 min.)
2. Region 2050 Presentation - Marty Douglass, Public Information Manager, Carol Heinkel, Lane Council of Governments (60 min.)

MINUTES

1. Minutes of the May 20, 2002 Regular Board Meeting
   Minutes of the July 24, 2002 Special Board Meeting
   

BUSINESS SERVICE AGREEMENTS

1. ABB Energy Interactive, Inc. - Strategic Metering Project - Energy Management Services - Corporate Services. Applies to existing contract with ABB Energy Interactive, Inc., which provides web-based services to support EWEB’s PowerLineTM service. The amount requested is for three years, from 2002 through 2004. The current amount due is a one-year license/service renewal for $39,000 and is included in the 2002 budget. PowerLineTM provides customers with access to their hourly consumption data via the Internet and is available on a subscription basis at $29.00 per meter per month. The service initially targeted customer sites with 15 minute interval meters previously installed in 1997-98 for load research purposes. As a result, 142 of the 200 commercial load research meters have now been successfully subscribed to the service. PowerLineTM now produces $2,827 in monthly revenue and our Key Account Managers and EMS Staff continue to promote the service to prospective customer sites, including those participating in our energy management programs. Having the web-based capability already in place last year also made it possible to quickly implement the 2001 Large Customer Load Curtailment Program (April-September 2001) during the west coast energy shortage, which produced a net benefit of $1.4 million to EWEB. The software license renewal and associated continued web-based services were planned for and included in the 2002 budget. Total contract price of $117,000. Contact is Mike Logan, 484-2411, ext. 3061.
   
   
2. State of Oregon Motor Pool Interagency Agreement - Fleet Maintenance - Facilities Services. Additional funds needed for existing Inter-Agency Agreement with State of Oregon Motor Pool services. Because we have reduced the number of pool vehicles, EWEB makes use of the State Motor Pool, charged on a mileage or monthly basis, to supplement our fleet as needed for seasonal employees, damaged vehicle replacement and specific uses such as multiple passenger vans. This contract is renewed annual with the State for approval of a five year contract for $20,000 per year (total of $100,000). Contact is Kevin McCarthy, 484-2411, 3900.
   
   
3. Treasury and Cash Management. This is a technical budget amendment to correct management reports that show budget variances for funded interest expense that was inadvertently omitted from the 2002 budget and amendments to date.
   
   This budget amendment is for amortization of 2002 bond interest expense for the 2001A and 2001B bonds issued in November 2001. At that time, cash outlays for interest costs were capitalized as planned and included as part of the debt issue. This occurred late in the process with the result that the cash outlays for interest payments were included but that the accruals for interest expense (a non-cash item) were erroneously omitted. A similar oversight (ie. No budget entry for non-cash interest accruals) occurred in the budgeting and related amendments for the 2002A, 2002B, 2002C and the 2002 Water Bonds, and interest expense is included herein for those issues as well.
   
   It should be noted that no additional funding is necessary as these are non-cash accounting accruals that have no effect on cash balances and are being brought forward to correct variances appearing on monthly management reports that are used internally to monitor budget variances. Contact is Jim Origliosso, X3753.
   
   
4. Northwest Natural Gas Company - District Heating Fuel - Steam Division. This two-year contract provides for “upstream” purchases of natural gas and transportation to the Eugene City Gate for use in annual boiler production at EWEB’s Steam Plant, and will extend through April, 2004. This contract award is the result of recently concluded negotiations and offers obtained from alternative suppliers. The offers were evaluated on the basis of proposed commodity pricing, transportation margins, reliability of supply, and the availability of ancillary delivery and billing services.
   
   For the upcoming two-year period, Northwest Natural’s offer provides the best combination of gas purchase options, delivery terms, and lowest transportation margins. Pricing under the agreement is structured as an index-plus-margin arrangement with options to lock commodity price on specified delivery volumes in advance at any time during the two-year period. Gas deliveries under this agreement are budgeted annually at an estimated $1.5 million per year, billed monthly based on actual usage and cost, and reflected in the fuels charge component of EWEB’s rate to steam customers.
   
   A brief background memo and copy of the contract are included in the Board’s packet for information and review. Contact person is Dick Helgeson, Water & Steam Division Director, 484-2411, ext. 3960.
   
   
5. Nations Mini-Mix - Small Concrete Deliveries - Water Division. This item is for provision and delivery of small orders of redi-mix concrete for patching and repairs at individual job sites in conjunction with work performed by EWEB crews. The contract was obtained through a competitive solicitation for a 12-month initial term at fixed unit prices, with an option to renew on an annual basis thereafter for a total period of up to five years. Deliveries will be scheduled “as needed”, and charged to individual electric, water, and steam jobs budgeted annually by various EWEB departments. Requested authorization is for $50,000, the projected amount for combined purchases through July, 2003. Contact person is Harold Summers, 484-2411, ext. 3725.
   
   
6. G. Cole Inc. - Annual Asphalt Repair Purchases - Water Division. For routine annual purchase of asphalt repair services for various operation, maintenance, and capital projects performed by EWEB’s Water & Construction Services Departments. This contract was awarded through competitive solicitation in June of 1998, and allows for annual renewal extensions for up to five years. Pricing is based on established unit prices charged to individual O&M and Capital jobs budgeted annually by the Electric, Water & Steam Divisions. The requested $210,000 renewal authorization represents total estimated purchases from this vendor at bid prices effective through September, 2003. Contact person is Steve Read, Water & Construction Services Manager, 484-2411, ext. 3727.
   
   
7. Public Agency Network 2002-2003 Budget. As the Executive Authority for the Public Agency Network (PAN), EWEB is responsible for the adoption of an annual operating budget. Budget adoption will be solicited as part of the consent calendar at the August 6, 2002 Board meeting. Contact: Debra Smith, ext. 3102.
   
   
8. Environmental Solutions - Leaburg/Walterville Relicensing. Environmental Solutions is providing support to EWEB for our relicensing efforts, specifically, conducting wetlands delineations, developing mitigation plans for wetlands impacted by construction of new facilities, reviewing fill and removal permit applications, and preparing pre and post-construction wetlands monitoring plans required by the FERC license. Additional work will be required to assess wetlands impacts due to the planned Leaburg Lake raise and Leaburg tailrace excavation. This amendment covers work anticipated through 2003. Actual expenditures: $36,603.25; Budgeted Amount: $40,000; Additional funds needed: $54,500; Funding Source: 2002 budget. Contact: Laurie Power, ext. 3313.