Board Members present: Patrick Lanning, Sandra Bishop, and Ron Farmer. President Dorothy Anderson and Commissioner Paul Conte was excused.

Others present: Randy Berggren, Dick Varner, Mark Freeman, Dawne Howard, Lance Robertson, Marty Douglass, Mel Damewood, Dick Helgeson, Jim Wiley, JoAnn Anderson, and Krista Hince of the EWEB staff; and Ruth Atcherson, City of Eugene Minutes Recorder.

Vice President Lanning called the Special Board Meeting to order at 7:35 p.m.

AGENDA CHECK

General Manager Randy Berggren pointed out that the agenda had been revised and Agenda Item No. 8 (Citizen Utility Board Request for Billing Insert) had been removed and will be presented at a later time.

APPROVAL OF CONSENT CALENDAR

Minutes

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

Business Service Agreements

• AON Consulting, Inc. - Retirement Benefits Project - Human Resources - Corporate Services - $72,500
• Aurora Building/Interagency Housing Policy Board (St. Vincent DePaul's) - Water System Development Charge Grant Request - Water Division - $4,880 grant
• Brown and Caldwell - City View 1150 Reservoir Design - Water Division $23,688

Budget Amendments

• Budget Amendment No. 9 - Distribution O & M and Water Distribution Maintenance System - Electric Division - (savings in 2002 current year bond refunding will cover the $94,979 funds - 2/07/02 storm damage)
• Budget Amendment No. 11 - Residential DSM Programs and Business DSM Resource Program - Energy Management Services - Customer Services - Residential - $140,000 Bright Way Program with BPA; Business - $795,000 Con-Aug Contract with BPA
• Budget Amendment No. 12 - Water Main Replacement Project - Water Division - $103,683

Commissioner Farmer moved, with a second from Commissioner Bishop to approve the consent calender. The motion carried unanimously.

ITEMS FROM BOARD MEMBERS

Commissioner Bishop shared that she was happy to have returned from her trip and out of regions that are heavily reliant upon nuclear power.

CORRESPONDENCE

Mr. Berggren related the following items:

• He thanked the staff for the work that had been done in the EWEB water booth at the Eugene Celebration.
• He noted that the Board meeting on September 25 would include information and a discussion on retirement benefits.
• He directed Board members to look over the memoranda included in their packets regarding the Contributions-In-Lieu-of-Tax negotiations and low-income energy assistance. He added that there was also a memorandum on water peaks in the water system.
• He said that Portland General Electric (PGE) was being sold as part of the bankruptcy proceedings of Enron.
• He shared that the auditor for EWEB would be coming to a Board meeting soon to present to the Board information on future audits.
• He stated that staff is working with the BPA regarding the Trojan plant's role in Enron's bankruptcy.
• He explained that, after further exploration, staff has decided not to recommend pursuing the Arrowrock hydro-electric project.

PUBLIC INPUT

There were no members of the audience wishing to speak to the Board at this time.

DEPOSIT POLICY

Mark Freeman, Customer Services Supervisor/Field Services & Cash Collections, apprized the Board of the responses that staff had formed to the questions asked at the meeting held on September 3, as outlined in the attachment entitled Deposit Policy.

Commissioner Farmer noted that the previous year was a financial anomaly for many businesses. He expressed support for the recommendation but said that he had a difficult time punishing all businesses for the financial mishaps of a few. He felt that holding the deposit for ten years seemed punitive.

Vice President Lanning concurred with Commissioner Farmer. He felt that the discussion should not be based on the previous year.

Mr. Freeman noted that there had been $1.5 million in "write-offs" from July of 2001 to July of 2002.

Commissioner Bishop opposed holding business deposits for ten years. She suggested that five years would be an adequate waiting period. Commissioner Farmer said that he felt comfortable with a policy that held deposits for five years and returned them, subject to an annual review.

Commissioner Farmer moved, with a second from Commissioner Bishop, to hold the utility deposits of businesses for five years, subject to annual reviews. The motion carried unanimously.

WHOLESALE TRADING RESOLUTION

Dick Varner, Fiscal Services Supervisor, explained what the Wholesale Trading Resolution entailed.

Commissioner Bishop moved, with a second from Commissioner Farmer, to approve the resolution that will authorize the general manager to enter into power purchase and sale contracts, and related financial risk mitigation contracts, of a duration of one year or less.

Mr. Varner clarified for Commissioner Farmer that this would involve "hedging."

Commissioner Bishop requested that the resolution be given a number for reference purposes. Mr. Berggren suggested that the Board make a proposal to number resolutions in order to establish the practice.

Vice President Lanning called for the question. The motion carried unanimously.

The meeting adjourned at 8:10 p.m.

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Assistant Secretary President