Board Members present: Dorothy Anderson, Sandra Bishop, Mike Dyer, Jeff Osanka, and Susie Smith.

Others present: Randy Berggren, Will Bondioli, Tom Buckhouse, Marty Douglass, Dick Helgeson, Eve Hoth, Dale Kessinger, Roseanna McArthur, Jean Meyers, Jim Origliosso, Dick Varner, Shirley West, Debra Wright, and Krista Hince of the EWEB staff; Chris Cardwell, member of the public; and Kim Kunkel, minutes recorder.

President Anderson called the meeting to order.

MINUTES

The Commissioners reviewed the minutes of the August 19, 1997, Work Session and Regular Board Meeting and the September 2, 1997, Work Session.

Noting that she had been absent, President Anderson requested that the minutes of the September 2 Work Session be amended to reflect that the meeting was called to order by Vice President Smith.

Referring to paragraph two on page 3 of the minutes of the August 19, 1997, Work Session, Commissioner Osanka requested sentence one be amended to read "Commissioner Osanka expressed concern that, given the way merit-based pay is often structured, some employees may expect to automatically always receive compensation in addition to their salaries."

Referring to paragraph one on page 5 of the minutes of the August 19, 1997, Work Session, Commissioner Osanka requested that the final sentence be amended to read "Vice President Smith recommended utilizing a blend of local and pacific northwest industries in general."

Referring to paragraph seven on page 7 of the minutes of the August 19, 1997, Work Session, Commissioner Osanka requested that sentence one be amended to read "Commissioner Osanka suggested that staff document the compensation-related comments received in response to EWEB's Hot Line system so Board discussion can adequately address and reflect the concerns expresed by employees."

Referring to the minutes of the August 19, 1997, Work Session, Commissioner Bishop requested that the record reflect her support for a flexible compensation plan that provides a predictable stair-step future for those employees performing at the optimum of their ability whose particular positions are not necessarily expanded by professional development.

Referring to the minutes of the August 19, 1997, Work Session, Vice President Smith requested that the minutes be amended to reflect that the meeting began at 7:30 p.m. Noting that she had been absent, President Anderson requested that the minutes be amended to reflect that the meeting was called to order by Vice President Smith.

Vice President Smith moved, seconded by Commissioner Osanka, to approve the minutes of the August 19, 1997, Regular Board Meeting and the September 2, 1997, Work Session, as amended, and to bring back the August 19, 1997 Work Session minutes with the Commissioner's changes. The motion passed unanimously.

CORRESPONDENCE

The Board agreed to convene an additional meeting on October 8 to discuss EWEB's Compensation Plan.

General Manager Randy Berggren reviewed a number of information items included in the Board Meeting agenda packet.

Mr. Berggren reviewed draft agendas for the October 7 Executive Session and Board meeting.

PUBLIC INPUT

There was no public input.

BANK SIGNATURE CARDS AND RESOLUTIONS

Account Analyst Debra Wright requested Board approval of a resolution designating Bank of America as a bank and depository for EWEB funds, effective October 1, 1997.

Vice President Smith moved, seconded by Commissioner Osanka to approve the following motion:

RESOLVED, that BANK OF AMERICA NT&SA, Portland, Oregon, be and hereby is designated as a bank of and depository for funds of the Eugene Water & Electric Board of the City of Eugene, Oregon, which funds may be deposited or withdrawn on checks, drafts, receipts or advices or debit given or signed in the Board's name by the manual and/or facsimile signature of any two authorized signatories listed herein. Said bank is hereby authorized to honor and pay any withdrawals from said funds whether or not they are payable to bearer or to the individual order of any person or persons signing same.

RESOLVED further, that funds of the Eugene Water & Electric Board placed in said Bank of America NT&SA shall be deposited in the accounts listed below, in amounts determined by the Board's Treasurer, and that signatories for withdrawals therefrom shall be as shown under said accounts.

BANK OF AMERICA NT&SA

Portland, Oregon Branch

Main Account #88327-00124

Payroll Account #88325-00125

Trojan Main Account #88323-00126

Trojan R &C Account #88321-00127

 

President	Dorothy Anderson
Vice President	Susan L. Smith
General Manager-Secretary	Randy L. Berggren
Treasurer	James H. Origliosso
Assistant Treasurer	Catherine D. Bloom
Assistant Secretary	Krista K. Hince

RESOLVED further, that any two of the above signatories are designated as the signing authority for all investment transactions of this account and that each such investment transaction shall be confirmed in writing by two of the above signatories.

RESOLVED further, that all canceled checks, bank statements and correspondence for the above accounts shall be directed to General Accounting, Eugene Water & Electric Board, Post Office Box 10148, Eugene, Oregon 97440.

RESOLVED further, that the authority hereby conferred upon the above-named persons shall remain in full force and effect until written notice of revocation thereof has been delivered to said Bank, and all prior resolutions relative to the foregoing accounts and funds are hereby revoked.

The motion passed unanimously.

COMPENSATION PROJECT DEVELOPMENT

Referring to a series of overhead displays, copies of which were distributed, Human Resource Specialist Jean Meyers and Consultant Chris Cardwell 1) led the Board in a continued discussion regarding the draft total compensation philosophy and related issues; 2) presented, and solicited Board reaction to, a high-level total compensation strategy; and 3) discussed the process to finalize the total compensation philosophy and strategy.

Mr. Cardwell reviewed a record of the compensation-related Board comments heard during the August 19 meeting of the Board and inquired as to whether it accurately reflected Commissioners' recollections of the discussion. The Board responded, as follows:

• Replace "Performance-based pay is important and should be explored" with "Performance-based pay should be explored. Must explore it before claiming it is important. Find a balance between expecting a job to be performed well and exceptional performance (Smith).
• Reflect the Board's discussion regarding EITHER establishing a finite pool of resources and implementing performance-based pay OR implementing merit-based pay (Osanka).
• View EWEB as being at the philosophical stage of compensation plan development. EWEB should first design a conceptually workable compensation strategy and then assess the related cost factors and consequences (Smith).
• Cost is secondary to developing an equitable and sound compensation philosophy and objectives. If the plan is then costed out and found to exorbitantly exceed the cost of the current compensation plan, adjustments can be made at that juncture (Dyer).

Noting that the Board's comments from August 19 had been incorporated, Mr. Cardwell reviewed the revised EWEB Total Compensation Philosophy. The Board commented, as follows:

• Under Statement of Overall Purpose, amend paragraph one to state: "The following total compensation philosophy was established to facilitate the achievement of the mission, vision and organizational goals of the Eugene Water & Electric Board (EWEB) consistent with the core operating values of EWEB" (Smith).
• Under Objectives, amend item 4 to state: "Reward employees for organizational, team, and individual results, balanced with our ability to pay" (Smith).
• Regarding item 4 under Objectives, struggling with the concept of "team." Unclear as to its definition in this context (Smith).
• Uncomfortable regarding variable pay opportunities (Smith).
• Under Principles, delete "Promote teamwork and team accountability" (Smith).
• Under Principles, amend item 7 to state: "Keep the total compensation plan simple to assure. . ." (Smith).
• The simplicity of the plan should assure community understanding of the principles and objectives as opposed to understanding of the plan itself. Under Principles, amend bullet one under item 7 to state "Understanding by employees." Add a bullet under item 7 stating: "Understanding of the principles and objectives by the community" (Bishop).

With regard to the concept of "teamwork," Ms. McArthur stated that it is essential that employees collaborate toward the greater good of the organization. She said a compensation plan can promote such collaboration or it can promote individual accomplishment resulting in a sense of separateness. Ms. McArthur said EWEB does not want to send a message that it values individual work over the work of individuals working in collaboration. She suggested amending item three under Principles to state: "Promote collaboration and individual and work unit accountability."

Mr. Cardwell reviewed the implications for EWEB's total compensation strategy and discussed the following next steps:

1. Making appropriate changes to the draft total compensation philosophy;
2. Assembling materials for a Board/EMT education session, covering base pay and incentives; and
3. Developing a complete total compensation strategy.

    

ITEMS FROM BOARD MEMBERS

With regard to a letter from Max Leibrick to the Board, Vice President Smith suggested that Marty Douglass draft a response on behalf of the Board reflecting that the Wyoming Wind project is a product of EWEB's Resource Plan and was subject to public input which yielded broad community support.

Noting that she was impressed by her recent tour of EWEB's Steam Plant, Commissioner Bishop expressed interest in encouraging use of steam at the new County juvenille facility. Mr. Helgeson said EWEB is discussing this possibility with the City; however, connecting the facility to steam would require a $250,000 line extension.

Commissioner Bishop expressed concern and requested Board action regarding the recent changes in the City's permit system, noting that potential EWEB revenue implications will be passed on to rate payers. Mr. Berggren said he would provide the Board with background information regarding this matter.

The meeting adjourned at 9:40 p.m.