Item A: Tour of Eugene Water & Electric Board Riverfront Site and Discussion of Relocation Project

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issues and decisions that will need to be addressed. Discussion. Attachment A presents a timeline list of the significant issues and decisions that need to be addressed to allow commencement of construction on the Roosevelt Project in 2007. The notes below provide brief explanation and context for the various items on the timeline. 1.Design. The current schedule assumes completion of all design work (Design Development and Construction Documents) by February 2008. Design Development is expected to be 85% complete by February 2006 allowing for completion of “Design Development Estimate” (item 3c). 2.Determine Final Electric and Water Rate Assumptions. These questions and decisions should be addressed by the Board prior to approval of any final cost estimate (item 3e) or approval of a bond funding resolution (item 5b). a.Determine Water Utility Cost Share. Estimates of rate impacts related to the Roosevelt Project previous shared with the Board have assumed the traditional 86% electric and 14% water split. Staff will review the Roosevelt plan to determine if that cost sharing assumption is accurate or if another assumption should be considered. b.Water Utility: Lease or Own? The Finance Department will provide background for Board review and consideration on this question. c.Include Riverfront Property Sale Price Assumption? The most recent estimate of long-term water and electric rate impacts associated with the Roosevelt Project were provided to the Board in June and assumed that some portion of the EWEB riverfront property would be sold post-2013 and the proceeds would be used to offset project debt service. We will provide the Board, for review and perspective, estimates with and without this assumption on sale price. 3. Complete Final Cost Estimate. a.Project Budget Estimate. This amount is $72.3 million and was approved by the Board in June 2006 and includes a 5% reduction from the November 2005 30% design estimate. b.CM/GC Estimate.Completion of this estimate is expected in November 2006; it will be compared to the project budget estimate (item 3e) and used to specify, resolve and eliminate differences. The CM/GC estimate will also be referenced and adjusted by the design team as we proceed with design development work. c.Design Development Estimates. These estimates will be completed separately by the Architect and the CM/GC in early March 2007 and will be based on the Design Development work completed to that point (estimated to be about 85%). d.Reconcile / Justify Estimates. Differences in the Design Development estimates (item 3c), as well as differences with the Project Budget estimate (item 3a), will be reviewed and resolved, with the goal of completing a single project cost estimate that can be brought to the Board for review and consideration. e.Approve Final Estimate. This estimate will need to be consistent with the Project Budget Estimate (item 3a) and any variation justified for and approved by the Board. This estimate will also need to include adequate contingencies and reserves to cover any expected escalation of building construction costs in the 2008-09 period. 2