AGENDA

SPECIAL BOARD MEETING
(WORK SESSION)
EWEB BOARD ROOM
SEPTEMBER 17, 2002
5:30 P.M.

  1. Preliminary 2003 Work Plan and Budget - Dick Varner, Fiscal Services Supervisor (60 min.)
  2. Electric and Water Capital Work Plan - Ken Beeson, New Resource Projects Manager and Mel Damewood, Water Engineering Manager (60 min.)

SPECIAL BOARD MEETING
7:30 P.M.

  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. Deposit Policy - Mark Freeman, Customer Services Supervisor/Field Services & Cash Collections (Presentation - 10 min./Discussion - 20 min./Action)
  7. Wholesale Trading Resolution - Dick Varner - (Presentation - 10 min./Discussion - 10 min./Action)
  8. Citizen Utility Board Request for Billing Insert - Randy Berggren, General Manger (Presentation -10 min./Discussion - 10 min./Action)
  9. Items removed from Consent Calendar

Consent Calendar
September 17, 2002

  1. Minutes of the July 16, 2002 Work Session and Regular Board Meeting minutes

    BUSINESS SERVICE AGREEMENTS
  2. AON Consulting, Inc. - Retirement Benefits Project - Human Resources - Corporate Services. The original budget set aside was $20,000 for the production of an annual actuarial report and some addition actuarial consulting/analysis in support of project work focused on EWEB's retiree benefits plan design changes. The additional $36,447.60 is for actuarial services and analysis performed within the original project scope of work but under budgeted. Second, based on Board direction received on August 16, 2002, the Retiree Benefits Project team has a need to add $16,000 in response to modified project alternatives the Board of Commissioners desires to evaluate and consider. These modified alternatives are outside the scope of the original project work plan and require additional actuarial analysis. It's not known whether further alternatives will emerge from future Board deliberations planned for late September and October, 2002. The variables involved in changing retiree benefits is complex and future discussions may prompt the need for actuarial services between the present time period and year end. As a contingency, an additional $20,000 is requested and will not be used if it is not needed. Cost of the increase requested is $72,500. Contact person is Jean Meyers, 484-2411, ext. 3015.
  3. Aurora Building/Interagency Housing Policy Board (St. Vincent DePaul's) - Water System Development Charge Grant Request - Water Division. In accordance with established Board procedures, the Lane County Interagency Housing Policy Board is requesting a $14,880 grant to offset Water System Development Charges for the Aurora Building. The 54-unit low income housing development is being built at the corner of 11th and Oak in downtown Eugene by the non-profit housing subsidiary of St. Vincent DePaul. A 1997 resolution and interagency agreement provide for annual consideration by EWEB of up to $100,000 in SDC grants for qualifying low income housing projects, subject to availability of funds and Board approval. The project has been reviewed in detail by the Housing Policy Board, is receiving financial support from other local, state and federal agencies, and meets EWEB's established funding criteria. This is the first such grant request received in 2002, and no others are pending at this time. Staff recommends approval with funding from available surplus water operating reserves. Contact person is Dick Helgeson, Water Division Director, at 341-1871 or E-Mail Dick Helgeson

  4. Brown and Caldwell - City View 1150 Reservoir Design - Water Division. Brown and Caldwell is assisting EWEB in developing a procurement document for an elevated steel tank (City View 1150 Reservoir) located in the south hills off of Timberline Drive. This contract increase is due to a change in the procurement process that will require more detail in the contract specifications and drawings, which are being prepared for the bidding process. The original contract amount was $11,322. The contract change is to increase by $23,688 for a total of $35,000. The increase in the contract cost is well within the existing 2002 capital budget amount authorized for the job. Contact is Jay Bozievich at 684-4759 or E-Mail Jay Bozievich

    BUDGET AMENDMENTS
  5. Budget Amendment No. 9 - Distribution O&M and Water Distribution Maintenance System - Electric Division. On February 7, 2002 the largest storm to hit EWEB's Water & Electric distribution system in 40 years left extensive damage throughout the system. EWEB employees and line crews from outside the local area worked 6 consecutive days to restore service. This budget amendment will adjust the budget to reflect the net cost of the storm. Contact Dave Koski for questions, 484-2411, ext. 3731. Savings in 2002 current year bond refunding will cover the $94,979 funds.

    Gross Storm Expense $1,635,047
    Less FEMA reimbursement <$1,251,285>
    Less internal labor and material offsets <$ 288,783>
  6. Budget Amendment No. 11 - Residential DSM Programs and Business DSM Resource Program - Energy Management Services - Customer Services. This budget amendment is for additional DSM funding for residential and business customers. Requests from customers for energy engineering and conservation funding have increased dramatically since last year's rate increase.

    Funding for this additional DSM activity in residential comes from the sale of EWEB's Bright Way Program to BPA on August 15, 2002 for $180,000. Funding for business programs comes from the BPA Con-Aug contract signed July 31, 2002, that provides an additional $2,452,840 over the next six months. Contact Mat Northway, 484-2411, ext. 3765.

    Activity
    Actual

    Expenditures
    Budgeted Amount
    Additional Funds Needed
    Funding Source (reserves, new revenue, bonding)
    Residential
    $2,162,625
    $2,762,798
    $140,000
    		 BPA purchase of Bright Way Program
    Business
    $3,362,744
    $3,493,402
    $795,000
    		 BPA Con-Aug Contract


  7. Budget Amendment No. 12 - Water Main Replacement Project - Water Division. This project identifies several jobs that replace old, dilapidated and undersized mains. Replacement of steel, asbestos cement and cast iron mains are typical of jobs in this project. EWEB had four main replacement jobs that were not completed in 2001 because of crew scheduling issues which forced the jobs into 2002. These four jobs were not included in the approved 2002 budget, but were carried over and completed in the first quarter.

    The authorized 2002 budget has $377,317 to cover eight main replacement jobs. We are projecting to spend $481,000 in 2002 to complete ten jobs. Two jobs originally scheduled for this year have been deferred and re-budgeted for 2003 in order to balance construction crew availability and keep budget amendments to a minimum. Additional funds needed is $103,683. It is to come out of the Water Capital Reserves budget. Contact person is Mel Damewood, 484-2411, ext. 3218.