Board Members present: Susie Smith, Jeff Osanka, Mike Dyer, Sandra
Bishop, and Dorothy Anderson.
Others present: Randy Berggren, Manda Bednarczyck, Ken Beeson, Jim
Bemis, Tom Buckhouse, Marty Douglass, Dick Helgeson, Steve Hill, Dale
Kessinger, Mike Logan, Kris Middlewood, John Mitchell, Mat Northway,
Jim Origliosso, and Krista Hince of the EWEB staff; Jennifer Winters,
KEZI-Television; and Tonie Nathan, member of the public.
President Smith called the meeting to order.
MINUTES
The Commissioners reviewed the minutes of the December 2, 1997, Regular Board Meeting, and the February 17, 1998, Work Session and Special Board Meeting.
Referring to paragraph 3 on page 6 of the February 17, 1998, Special Board Meeting minutes, Vice President Osanka requested that sentence 2 be amended to read "He said it seems as though EWEB should intervene in this matter, repeating his understanding that staff will return to the Board for discussion of the specific items to which EWEB will respond."
Referring to paragraph 4 on page 6 of the February 17, 1998, Special Board Meeting minutes, Commissioner Bishop requested that sentence 2 be amended to read "She said the innumerable variables involved make it impossible for EWEB to guarantee the protection of fish in isolation or to the exclusion of other benefits of owning hydroelectric power generation."
Referring to the final paragraph on page 5 of the February 17, 1998, Special Board Meeting minutes, Commissioner Dyer requested that sentence 2 be amended to read "He said that absent this lawsuit and the uncertainty it introduces to the future economic value of the projects, EWEB was ready, willing, and able to construct scheduled fish improvements beginning this year."
Vice President Osanka moved, seconded by Commissioner Dyer, to
approve the minutes of the December 2, 1997, Regular Board Meeting,
and the February 17, 1998, Work Session and Special Board Meeting, as
amended. The motion passed unanimously.
CORRESPONDENCE
General Manager Randy Berggren reviewed the following information items included in the meeting agenda packet:
AGENDA CHECK
Commissioner Bishop requested that Items From Board Members be added to the agenda as item 9.
President Smith determined there was consensus to approve the
agenda, as amended.
PUBLIC INPUT
There was no public input.
WATER RATE PROPOSAL
Referring to a memorandum included in the meeting agenda packet, Senior/Financial Rate Analyst John Yanov presented a brief overview of the 1998 Water Rate Proposal. He said that at the conclusion of the public hearing to follow, staff would request Board approval of both the 1998 Water Rate Proposal and a revised schedule of Water System Development Charges. He said the sole change to the existing customer services policies and procedures section relates to the inclusion of EWEB's new 3/4-inch metered service.
PUBLIC HEARING ON WATER RATE PROPOSAL
President Smith opened the public hearing on the 1998 Water Rate Proposal.
Having determined there was no one present who wished to speak, President Smith closed the public hearing.
ADOPTION OF THE 1998 WATER RATE PROPOSAL
Commissioner Dyer moved, seconded by Commissioner Anderson, to approve the 1998 Water Rate Proposal and revised schedule of Water System Development Charges.
Commissioner Bishop requested that the two components of the original motion be separated and considered individually.
Commissioner Dyer moved, seconded by Commissioner Anderson, to approve the 1998 Water Rate Proposal.
Vice President Osanka moved, seconded by Commissioner Bishop, to amend the above motion to state:
"WHEREAS EWEB has been unable to find ways to cut water utility costs to avoid the 4.6 percent water rate proposal; and
"WHEREAS, EWEB has over realized funds from the Electric side of the utility; and
"WHEREAS, EWEB surveys indicate that the average consumer, since they receive one bill from EWEB, thinks of water and electric as part of the same utility.
"THEREFORE, BE IT RESOLVED that: 1) the EWEB Board will pass the 4.6 percent rate increase; and 2) the EWEB Board directs staff to use a portion of the over realized electric revenues to reduce customers' bills by an amount equal to the 4.6 rate increase."
Vice President Osanka finished his statement by saying it was awfully easy to increase rates, but when it comes time to decrease rates, when it comes time to give a rebate to the customer even from over-realized funds, we seem to have a hard time doing that.
Commissioner Bishop said that while she understood the concept behind Vice President Osanka's amendment, she would not support the amended motion because it would result in a major breakdown in EWEB's billing system and cost rate payers a great deal of money.
Commissioner Anderson called for the question.
The amended motion failed, 4:1; with Vice President Osanka voting "yes."
Vice President Osanka said he would have been willing to support the water rate increase if EWEB had been able to offer citizens an electric rate decrease equivalent or similar to the increase. He said the Board had received comments from constituents who are concerned about the water rate increase. He said he would oppose the original motion.
Commissioner Anderson said the issue of what to do with the over realized funds will be discussed as a separate matter. She expressed her opinion that the water rate increase is not an extreme increase and is justified due to a number of factors that have been presented to and discussed by the Board. She said she would support the motion.
Commissioner Bishop expressed appreciation for staff's efforts in terms of decreasing the amount of the proposed rate increase. She agreed with Commissioner Anderson that the proposed rate increase is necessary and justifiable. Commissioner Bishop said occasional rate increases are the cost of doing business and providing the level of service to which EWEB customers are accustomed.
Vice President Osanka concurred with Commissioner Bishop's statements and said he also appreciates staff's efforts. He reiterated his belief that the over realized revenue from the Electric side of the utility ought to be utilized to reduce customers' electric bills. He requested that the idea of using the over realized funds to offer customers a rebate be revisited during a future meeting.
Commissioner Dyer said he supports the idea of offering customers a rebate, noting that the issue is scheduled for discussion during a future meeting. He said it was his hope that EWEB could break the cycle of increasing water rates every other year; however, he acknowledged the challenge this would present to staff. He said he would support the motion.
President Smith commented that EWEB's water and electric utilities are divided, not only in concept, but physically by the City of Eugene Charter. President Smith said the water utility is very sensitive to annual levels of consumption, has extremely high capital maintenance costs and chemical usage requirements, is susceptible to regulatory increases, and is faced with needing to plan for future supply. She said the electric utility, which currently has the revenue to address unfunded liabilities and future cost escalations, must be evaluated as a separate operation. President Smith expressed appreciation to staff for their efforts to minimize the proposed water rate increase. She said she would support the motion.
The motion passed, 4:1; with Vice President Osanka opposed.
Commissioner Dyer moved, seconded by Commissioner Anderson, to approve the revised schedule of Water System Development Charges.
Vice President Osanka inquired as to the point at which the policy concerning the exemption for builders of low-income housing will be reviewed by the Board. Mr. Berggren said the policy is revisited by the Board as part of the budget development.
The motion passed unanimously.
AUTOMATED METER READING PILOT UPDATE
Referring to a document entitled Strategic Metering Project that was included in the meeting agenda packet, Energy Management Section Manager Mike Logan, Senior/Financial Rate Analyst Dale Kessinger, and Account Manager Jim Bemis, presented an update on EWEB's Automatic Meter Reading Project and demonstrated how the system works.
Mr. Logan reviewed the following key components of the system and briefly described their functions:
Mr. Kessinger presented an overview of how EWEB is currently using the Automated Meter Reading System, demonstrated actual applications of the information gathered by EWEB's Automated Meter Reading System, discussed how the system and the information it gathers can be linked to EWEB's Telecommunications System, and highlighted potential future applications of the system and their benefits to EWEB.
With regard to the link between EWEB's Automated Meter Reading System and its Telecommunication System, Commissioner Anderson expressed concern regarding the security of customers' account information. Mr. Kessinger responded that the information will be security protected, as is other Internet-accessible financial information.
Vice President Osanka commented that he thinks the Automated Meter Reading System will be an excellent tool for retaining commercial and industrial customers; however, he continues to see it as a negative in terms of residential customers in that the net result will be a reduction or elimination of EWEB's Meter Readers. He said he believes the Meter Readers provide an important service in terms of promoting the positive image that EWEB enjoys in the community.
PURCHASING POLICY & PROCEDURES REVISIONS
Referring to a memorandum included in the meeting agenda packet, Facilities Services Director Tom Buckhouse reviewed and requested Board approval of a policy revision that is a direct result of Senate Bill 139, wherein a Public entity may purchase goods and services under $5,000 without competitive quotes. He said this amount has been raised from the previous established amount of $2,500 that had been in place for many years.
Vice President Osanka moved, seconded by Commissioner Dyer, to approve the change to EWEB's Purchasing Procedures Manual to follow the changes made by the State Legislature in the last session with regard to Senate Bill 139.
ITEMS FROM BOARD MEMBERS
Commissioner Bishop requested a Board tour of the Terratherm Project. Staff agreed to arrange a tour for interested Commissioners.
The meeting adjourned at 9:30 p.m.