Rod,

Here is an update on where we are at on reorganizing, in order to avoid filling the Director's position vacated by Larry Fenstad.   I met with all the OSS Directors and gave them the following attached guidelines and an opportunity to redesign the organzation, without filling back Larry's position.   The org charts below represent the organization that we have agreed to pursue.

I have met with Laura and Brian to review the organization and to have compensation review.   Gary Smith has reviewed the proposal and given his approval.   

While we will encounter a couple of moves, in order to implement this, we will keep the staffing levels whole and reduce by one (1) directors position, and not increase our current estimate.   The real benefits to this organization are:

It provides better supervision and alignment with the field operations.
It will provide for better training opportunities for future management positions.
It will better align our consolidation efforts.
It will off-load some daily supervisory responsibilities from David, Elaine and Barney.
It will free up some time for David, Elaine and Barney to better oversee and improve the quality of the financial data.

When we get some of the following issues resolved and working smoothly, I feel we will be able to support and possibly downsize from our current staffing levels:

SAP
ADAYTUM
DATA WAREHOUSE
iBUYIT
iPayit
SAP Timekeeping
Conversion of MCS/MP2 to MP5
Codes & Compliance - fully implemented for all Business Units
Ex-EOTT Administrative personnel trained
Training for our personnel on the fully functional systems



  

I met with Larry this morning and went over transitional issues.   He will be working with HR to get his severance papers in order.  We are looking at an effective date of September 01, 2001.


Morris A. Brassfield
Enron Transportation Services
Senior Director
Operations Support Services
Three Allen Center 3285
333 Clay Street
Houston, Texas 77002

713-646-7006  Business Phone
713-503-1409  Cell Phone