AGENDA

1. Water Source Protection Program Update - Karl Morgenstern, Drinking Water Source Protection Coordinator (Presentation - 30 min./Discussion - 30 min./Information)
   
   
2. Groundwater Project Update - Jay Bozievich, Senior Water Engineer (Presentation - 30 min./Discussion - 30 min./Information)

1. Agenda Check (President Lanning)
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. Steam/Electric Risk Swap - Eric Hiaasen, Mid-Term Trader and Will Bondioli, Steam Operations Supervisor (Presentation - 20 min./Discussion - 10 min./Information)
7. Items removed from Consent Calendar

1. MINUTES
   Minutes of the April 22, 2003 Work Session
   
   CONTRACT AWARDS
   
   
2. Egge Sand & Gravel - Annual aggregate (gravel) purchases - Water Division. Covers routine annual purchase of aggregate (gravel) for various operation, maintenance and construction projects performed by EWEB's Water & Construction Services Departments. This contract is structured as a 12-month agreement with an option to extend on a year-to-year basis for up to five years. EWEB purchases rock from multiple vendors based on established unit prices, and taking into account the travel time to/from various project locations. Associated costs are charged to individual O&M and capital jobs budgeted annually by the Electric, Water and Steam Divisions. The $50,000 contract amount represents total estimated purchases from this vendor at bid prices effective from July 15, 2003 through July 14, 2004. Contact person is Steve Read, Water & Construction Services Supervisor, 484-2411, ext. 3727.
   
   
3. Delta Sand & Gravel - Annual Aggregate (gravel) purchases - Water Division. Covers routine annual purchase of aggregate (gravel) for various operation, maintenance and construction projects performed by EWEB's Water & Construction Services Departments. This contract is structured as a 12-month agreement with an option to extend on a year-to-year basis for up to five years. EWEB purchases rock from multiple vendors based on established unit prices, and taking into account the travel time to/from various project locations. Associated costs are charged to individual O&M and capital jobs budgeted annually by the Electric, Water and Steam Divisions. The $250,000 contract amount represents total estimated purchases from this vendor at bid prices effective from July 15, 2003 through July 14, 2004, 2004. Contract person is Steve Read, Water & Construction Services Supervisor, 484-2411, ext. 3727.
   
   
4. 2003 Water System Master Plan - CH2M-Hill, Corvallis, Oregon - Water Division. EWEB Water is in need of an updated Water System Master Plan. The last Master Plan was conducted in 1991 and is outdated, in part, because of the capital improvements that have occurred through the Water Supply Plan. There has also been substantial growth to our system through the 1990's that was not anticipate din the 1991 Master Plan. The 2003 Master Plan will address policy, operational and design criteria in light of the new water system improvements. Also included are sections addressing Water Conservation and Contingency planning to satisfy WRD requirements for our McKenzie Water Rights permit extension. This plan will address long-term facilities needs (through 2025) of our water system, which will guide EWEB through financial planning of future projects. The contract amount is $240,000. Start of contract will occur in June and be completed in spring of 2004. Project Manager is Mel Damewood, 341-1878, or E-Mail Mel Damewood
   
   
5. IDC, Portland, Oregon - Santa Clara Reservoir Security Replacement - Water Division. This contract is for design and installation of a new security system for the Santa Clara Reservoir. The system will detect unauthorized entry into the facility. The contractor has worked previously with EWEB Water in security matters and conducted EWEB's vulnerability assessment. The contract amount is $105,000. Project Manager is Mel Damewood, 341-1878, or E-Mail Mel Damewood
   
   
6. Acres International - Carmen Smith & Leaburg Security Assessments & Security Plans - Electric Division. Staff recommends executing a contract with Acres International for performance and development of FERC-required Security Assessments and Security Plans for Smith & Trail Bridge Dams and the Leaburg Power Canal Embankment. The terrorist attacks of September 11, 2001 have prompted the FERC to reassess security needs and to implement additional security measures. One such measure requires an assessment of existing security systems, potential threats and consequences and development of plans to mitigate/prevent potential threats. Acres International has worked closely with the FERC in developing an assessment process that meets the requirements of it's Security Program for Hydropower Projects. Acres has successfully performed this work on other Group 2 facilities. The cost of this contract is not to exceed $30,000. Contact person is Dean Ahlsten at 341-1830, or E-Mail Dean Ahlsten
   
   
7. Meza Construction, Inc. - Trail Bridge Spillway Expansion - Electric Division. Five responses were received May 20, 2003 to an invitation to Bid on modifications to the Trail Bridge Saddle Dike and Dam. This Project is required under the Federal Energy Regulatory Commission (FERC) Part 12, Subsection D dam safety regulations. It is necessary to add spill capacity in order to safely pass Probable Maximum Flood (PMF) waters through the dam. The lowest cost proposal that satisfied the minimum qualifications of the bid solicitation was Meza Construction, Inc. for an amount of $853,400. The 2003 budget for Engineering and Inspection was $191,000 and the budget for Construction was $690,000 for a total of $881,000. The higher than anticipated Construction costs will be covered by savings in design costs and a transfer of budgeted funds from other capital jobs in the Carmen-Smith Capital Project. Staff requests approval to award a lump sum contract to Meza Construction, Inc. for these improvements. Contact person is Dean Ahlsten at 341-1830, or E-Mail Dean Ahlsten
   
   
8. Asea Brown Bovaria (ABB) - Single-Phase Distribution Transformers - Electric Division. Bids were solicited for single-phase pole mount distribution transformers. Seven manufactures quoted on a one-year contract with the option for renewal up to five years. Annual transformer stock is purchased under this contract as-needed. The bid proposals were evaluated based on conformance to EWEB's technical specifications, initial purchase price, operating costs (loss efficiency) and quality of the product. Engineering recommends awarding the contract to the lowest evaluated bidder ABB, c/o WESCO, for an amount of $297,160. Contact person is Dean Ahlsten
   
   
9. Caustic Soda - Equapac - Hayden Bridge Filtration Plant - Water Division. This will be a yearly contract with the option to renew for an additional four (4) one (1) year periods for Caustic Soda (NaOH-Sodium Hydroxide). Product to be used for pH control of finished water at the Hayden Bridge Filtration Plant. Cost of the contract is $87,975.00 a year, or $439,875.00 for five years if renewed yearly. Contact Doug Wise, 484-2411, ext. 6781.