Board Members present: Dorothy Anderson, Jeff Osanka, Mike Dyer,
and Sandra Bishop. Vice President Smith was excused.
Others present: Randy Berggren, Cathy Bloom, Tom Buckhouse, Marty
Douglass, Cathy Hamilton, Dick Helgeson, Garry Kunkel, Dale
Kessinger, Jim Maloney, Brenda Sirois, Dick Varner, Ron Wilson, and
Krista Hince of the EWEB staff; Frank Nearing, KLCC, Peter Bartel,
member of the public; and Kim Kunkel, Minutes Recorder.
President Anderson called the meeting to order.
ELECTION OF BOARD OFFICERS FOR 1998
Commissioner Dyer moved, seconded by President Anderson, to nominate Vice President Smith as EWEB Board President and Commissioner Osanka as EWEB Board Vice President for 1998.
Noting her concern regarding the seniority procedure utilized by the Board and therefore the timing of the election relative to the upcoming Board Retreat at which she intended to propose a change in the Bylaws that would modify the procedure, Commissioner Bishop explained that her proposal would be to phase out the seniority system to allow open elections. She said the transition would occur in a manner that provides all current Board members the opportunity to serve in a leadership position. Commissioner Bishop noted that in writing her proposal, she reviewed the Board's election history and it appears Commissioner Osanka should be elected President at this time, given his level of seniority on the Board.
President Anderson said that a past review of Commissioners' seniority revealed that due to the timing of Commissioner Osanka's election to the Board, he is not, in fact, senior to Vice President Smith.
Commissioner Bishop said she was both interested in nominating Commissioner Osanka as President and opposed to waiting a term and a half before being eligible to serve in a leadership position on the Board.
Commissioner Osanka said the key to this dilemma is in the Bylaws' definition of seniority.
He said it does not seem unreasonable that he be elected President in 1998.
Commissioner Osanka moved to amend the original motion to state that the Board has determined the word "seniority" means that by regular order Commissioner Osanka would be elected Board President in 1998. The motion died for lack of a second.
Commissioner Bishop moved, seconded by Commissioner Dyer, to table the original motion until the January 20 Special Board Meeting. The motion passed unanimously.
APPOINTMENTS OF COMMISSIONERS TO COMMITTEES FOR
1998
Referring to the list of Board appointments included in the meeting agenda packet, General Manager Randy Berggren noted that "Representative to Watershed Council" was erroneously included twice, and that "Electric Resource Plan" should be replaced with "Water Supply Plan." In addition, he noted that President Anderson's and Vice President Smith's participation on the Underground Task Force had been omitted from the list of committees. Commissioner Osanka observed that Vice President Smith's position as Liaison to Special Districts had also been omitted.
Mr. Berggren announced that it appears a meeting between EWEB and Eugene Mayor Jim Torrey concerning the "hole tax" will take place within the next several weeks.
RATIFICATION OF BOARD CONSULTANTS FOR 1998
Commissioner Bishop requested a review of the services provided by EWEB's General and Special Counsel consultants, respectively. She said she was uncomfortable ratifying the recommendation prior to such a review.
Commissioner Osanka inquired as to the process by which staff determines its recommendation of EWEB's legal counsel consults. Mr. Berggren responded that unlike its process relative to many other Board consultants, EWEB issues no Request for Proposals (RFP) for its General and Special Counsel consultants. He said, however, that EWEB is aggressive in managing its legal costs. Noting that staff could present to the Board at a future meeting a detailed discussion concerning the duties of EWEB's legal counsel and the aforementioned cost-management strategies, Mr. Berggren requested that the Board move forward with ratifying the recommended Board consultants for 1998.
Commissioner Bishop said that because EWEB is a public entity, she is concerned that the legal counsel contracts have not been opened for review and consideration of alternative legal services in many years. Mr. Berggren responded that EWEB is exempt from bidding requirements for its legal counsel consultants.
Commissioner Osanka moved, seconded by Commissioner Bishop, to ratify the recommended Board consultants for 1998, with the understanding that the legal consultant contracts would be reviewed. The motion passed unanimously.
MINUTES
The Board reviewed the minutes of the October 7, 1997, Executive Session, November 26, 1997, Work Session, and the December 2, 1997, Work Session.
Referring to page 4 of the November 26 minutes, President Anderson requested that the following sentence be added at the conclusion of paragraph 2: "President Anderson disagreed, in that drinking water is less important at the Celebration than at the County Fair and that the present location of the booth is not satisfactory."
Referring to paragraph 4 on page 4 of the November 26 minutes, President Anderson requested that the final sentence be amended to read "President Anderson expressed support for Vice President Smith's proposal, with the exception that she would add to the list cutting the Oasis booth."
Commissioner Osanka moved, seconded by Commissioner Bishop, to
approve the minutes of the October 7, 1997, Executive Session,
November 26, 1997, Work Session, and the December 2, 1997, Work
Session, as amended. The motion passed unanimously.
CORRESPONDENCE
Mr. Berggren said that due to the delay in electing Board officers, the President's message will be rescheduled to the first meeting in February.
Mr. Berggren announced that EWEB is now recruiting for a Human Resources Manager and requested that Board members encourage qualified individuals to apply.
Noting the current 30-year low in treasury bond rates, Mr. Berggren said EWEB's Bond Counsel has indicated that a refunding process for EWEB's 1994 "C" bonds may begin in the next 30 days. He said staff would update the Board concerning this matter.
Mr. Berggren reviewed draft agendas for the January 20 Work
Session and Special Board Meeting, noting that a request for Board
action on the Power Marketing Incentive Plan will be deferred to the
first meeting in February.
PUBLIC INPUT
There was no public input.
OPEN ACCESS TRANSMISSION TARIFF
Referring to a memorandum and attached copies of presentation materials, Senior Rate/Financial Analyst Dale Kessinger reviewed elements of FERC Orders 888 and 889 relative to the need for an Open Access Transmission Tariff.
Noting that the FERC pro forma tariff regulates Independently Operated Utilities (IOUs), Commissioner Dyer inquired as to whether FERC has the authority to regulate publicly-owned utilities. Mr. Kessinger responded that EWEB will determine how it regulates its tariff. Mr. Berggren noted that there are advantages to EWEB's Open Access Transmission Tariff being consistent with the IOU or pro forma tariff, particularly since EWEB will pass through many IOU systems.
Mr. Kessinger said additional reasons for conforming with the pro forma tariff include the following:
Mr. Kessinger presented a brief overview of the contents and features of the proposed tariff, noting that its two sections are
Commissioner Osanka inquired as to the possible scenario in which EWEB might remove the tariff. Mr. Kessinger responded that EWEB may determine that it is in the utility's best interest to become a member of an independent grid operating (IGO) group such as INDIGO, in which case the IGO would could the tariff.
Mr. Kessinger presented a brief overview of the proposed tariff rates, noting that at the February 3 Board Meeting, he will answer questions from the Board and request approval of a resolution authorizing staff to file the tariff with EWEB's Regional Transmission Association.
Commissioner Osanka inquired as to whether there is a regulatory requirement to provide notice of proposed changes to tariff rates. Mr. Kessinger responded that there is a 60-day notice requirement.
WATER SUPPLY PLAN UPDATE
Water Resources Planner Brenda Sirois distributed
Jim Maloney, Resource Planning Analyst, distributed a document entitled "Steps in the Development of Objectives for the Integrated Water Resource Plan," and reviewed a brainstorming list generated by working group members.
Referring to a series of overhead displays, copies of which were distributed to the Board, Mr. Maloney reviewed the following aspects of EWEB's water system:
Commissioner Bishop inquired as to the possibility of having "growth" pay for the system capacity changes that are made to other parts of the system in order to provide capacity for the new demand. Mr. Helgeson responded that system development charges (SDC's) will ensure proper collection of growth-related expenses.
Marty Douglass, Acting Public Affairs Manager, reviewed the following three public outreach phases of the plan:
ITEMS FROM BOARD MEMBERS
Commissioner Osanka moved, seconded by Commissioner Dyer, to approve the appointments of Commissioners to committees for 1998, as revised. The motion passed unanimously.
The meeting adjourned at 10:05 p.m.