Board Members present: Susie Smith, Jeff Osanka, Sandy Bishop, and Dorothy Anderson. Commissioner Dyer was excused.
Others present: Garry Kunkel, Manda Bednarczyck, Cathy Bloom, Dick Helgeson, John Mitchell, Jim Origliosso, Laurie Power, and Krista Hince of the EWEB staff; and Kim Kunkel, Minutes Recorder.
President Smith called the meeting to order.
AGENDA CHECK
President Smith determined there was consensus to approve the agenda, as written.
ITEMS FROM BOARD MEMBERS
Vice President Osanka commended EWEB's line crew for its patience and diligence in restoring power to approximately 300 residents in the vicinity of 15th Avenue and Fairmont, while contending with the difficulties and delays posed by a police investigation. The outage was the result of a violent assault against a woman, during which the perpetrator drove his vehicle into a power pole.
Commissioner Bishop noted an interesting fact that Enron has pulled out of projects not only in Oregon, but California as well. In addition, Commissioner Bishop reported that the Portland General Electric (PGE) case was recently settled. She explained that PGE had claimed "exclusive territory" rights based on a one-time agreement with another utility in which the two entities traded customers. Commissioner Bishop said the Supreme Court ruled against PGE. She said the PGE claim and the court's ruling may play into the larger issue of how "territory" and the "right to serve" are interpreted in the face of industry restructuring.
Acting in the Absence of the General Manager, Electric Division Director Garry Kunkel distributed briefing papers on Terra Therm. He requested that Commissioners interested in touring Terra Therm contact Steve Hill, EWEB's Key Account Manager.
MINUTES
The Commissioners reviewed the minutes of the April 7, 1998, Work Session and Regular Board Meeting, and the April 21, 1998, Work Session and Special Board Meeting.
The Board agreed to defer consideration of the April 7, 1998, Work Session minutes, pending a revision of the language reflecting the Board's understanding with regard to the Integrated Energy Resource Plan (IERP) planning time line. (Discussion of this matter and suggested language for inclusion in the minutes is reflected in the minutes of the May 5, 1998, Work Session minutes).
Referring to page 4 of the April 7, 1998, Regular Board Meeting minutes, Commissioner Bishop requested that the final line be amended to read "Commissioner Bishop suggested that one alternative is to retire a portion of EWEB's debt."
Referring to page 5 of the April 7, 1998, Regular Board Meeting minutes, President Smith requested that paragraph 5 be amended to read "President Smith requested that staff compare the proposed options in terms of their relative benefits to the utility."
Referring to paragraph 4 on page 5 of the April 7, 1998, Regular Board Meeting minutes, President Smith requested that sentence 3 be amended to read "President Smith noted that affordable green power sources are currently melded into EWEB's power supply and it is disingenuous to say that customers must pay a premium for this "new" product in order to have electricity from an environmentally friendly resource."
Vice President Osanka moved, seconded by Commissioner Bishop, to approve the minutes of the April 7, 1998, Regular Board Meeting, as amended. The motion passed unanimously.
Referring to the attendance record of the April 21, 1998, Work Session minutes, President Smith noted that her absence had been excused.
Referring to the final paragraph on page 2 of the April 21, 1998, Work Session minutes, Commissioner Bishop requested that sentence 2 be deleted.
Referring to paragraph 4 on page 3 of the April 21, 1998, Work Session minutes, Commissioner Bishop requested that sentence 2 be amended to read "She said that philosophically, it seems that rebating the accumulated assets in such small amounts, given the high administrative costs, would be an irresponsible mismanagement of funds."
Referring to paragraph 5 on page 2 of the April 21, 1998, Work Session minutes, Commissioner Bishop requested that the final sentence be amended to read "She said she believes an assistance program can be established that is non-coercive and allows low-income customers an opportunity to contribute to the community in exchange for clearing their overdue bills."
Referring to paragraph 4 on page 3 of the April 21, 1998, Special Board Meeting minutes, Vice President Osanka requested that sentence 1 be amended to read "Vice President Osanka commented that as a Commissioner who will be retiring from the Board in the near future, and therefore will not be affected by this amendment, he now thinks there may be value to the seniority-based rotation of Board officers.
Referring to the attendance record of the April 21, 1998, Special Board Meeting minutes, President Smith noted that her absence had been excused.
Vice President Osanka moved, seconded by Commissioner Bishop, to approve the minutes of the April 21, 1998, Work Session and Special Board Meeting, as amended. The motion passed, 3:0, with President Smith abstaining.
CORRESPONDENCE
Mr. Kunkel forwarded staff's recommendation that the May 19 Work Session and Board Meeting be canceled, primarily due to Commissioners' election-related scheduling conflicts. He said that because no alternative meeting dates appear to be available, and there are no pressing issues, staff does not recommend rescheduling the meeting. Mr. Kunkel noted that Commissioner Dyer will be unable to attend the next regular Work Session and Board Meeting, scheduled for June 2.
Mr. Kunkel announced the following upcoming events:
Noting that a memorandum from Environmental Manager Laurie Power to Mr. Berggren was included in the meeting agenda packet, Mr. Kunkel requested that Ms. Power brief the Board on EWEB's potential membership in a group called For the Sake of the Salmon.
Ms. Power explained that former State Senator Bill Bradbury approached EWEB concerning its interest in joining For the Sake of the Salmon. Ms. Power stated that For the Sake of the Salmon is a multi-interest, volunteer-based organization. She said the organization, initiated several years ago, promotes a voluntary, consensus-based approach to coordinating State and regional salmon preservation efforts. She said the organization has achieved the support of California, Oregon, and Washington governors. Noting that the charter membership of For the Sake of the Salmon was included in the meeting agenda packet, Ms. Power said that because the Chinook Salmon has been proposed for listing as an endangered species, and For the Sake of the Salmon serves as the intermediary for funds to support watershed councils, she recommends that EWEB become a charter member of the organization. She noted that membership in the organization would entail her attending bi-monthly meetings.
Noting that she thinks highly of Mr. Bradbury, Commissioner Bishop said she believes membership in For the Sake of the Salmon would be beneficial to EWEB.
Vice President Osanka inquired as to the product of For the Sake of the Salmon. Commissioner Anderson responded that the Watershed Assessment, utilized by the McKenzie Watershed Council, is one product of the organization.
The Board expressed support for EWEB becoming a charter member of For the Sake of the Salmon.
Mr. Kunkel reviewed draft agendas for the June 2 Work Session and Regular Board Meeting.
PUBLIC INPUT
There was no public input.
AMENDMENTS TO BOARD BYLAWS
Mr. Kunkel explained that the proposed amendments to Article 4 of the EWEB Board Bylaws eliminate the seniority clause and clarify that a Board Officer shall serve no more than two consecutive 1-year terms.
PUBLIC HEARING ON BOARD BYLAWS
President Smith opened the second public hearing on the amendments to the Board Bylaws. Having determined there was no one present wishing to speak, President Smith closed the public hearing.
FIRST QUARTER FINANCIALS FOR 1998
Referring to a series of overhead displays, copies of which were distributed to the Board, Assistant Treasurer Cathy Bloom reviewed the results and impacts of EWEB's first quarter financials for 1998.
LAND CONSERVANCY
Referring to a memorandum included in the meeting agenda packet, Ms. Power explained that the attached "concept paper" offers a new approach to the land trust donation that was included several years ago in EWEB's relicensing application to the Federal Energy Regulation Commission (FERC). The land trust was to acquire property to enhance public access to the river for future recreational use and for protection of riparian and wildlife habitats and water quality.
Noting that FERC has decided against including the land trust proposal in the license because the trust was not directly associated with EWEB's hydroelectric projects, Ms. Power said EWEB staff has been exploring alternative approaches to the land trust donation. Ms. Power stated that several new developments that have occurred since EWEB's relicensing application was filed that may cause the utility to redirect its focus from recreation uses to water quality, watershed health, and habitat protection/improvement as pre-eminent needs of the McKenzie River.
Ms. Power presented a brief overview of the concept paper, noting that it includes some ideas for broadening the scope of the land trust from solely a land purchasing fund to a possible grant approach that could also include funds for habitat projects, studies, sampling, water rights purchase, pollution abatement, and drinking water source protection. She explained that under this new approach, which would benefit multiple watershed resources, funding could be shared by both electric and water revenues. In addition, EWEB funds could be used to facilitate and leverage grants from other sources, which could result in significantly greater funding sources than EWEB could provide on its own.
Ms. Power solicited comments from the Board regarding the alternative approach to the land trust donation reflected in the concept paper.
Commissioner Anderson expressed support for the alternative approach, noting that it provides EWEB with increased flexibility. She cautioned staff against reducing the amount of EWEB's donation. She said a reduction in funding may be perceived as an attempt to back out of an agreement. In addition, Commissioner Anderson stated that the possible increase in administrative costs associated with this alternative approach is an issue that should be considered.
Vice President Osanka expressed concern that if the land trust donation is reinstated as part of the relicensing requirement, as the result of environmental groups' challenge to FERC's decision, EWEB may be committed to allocate funds as part of the FERC land trust donation as well as the alternative approach proposed in the concept paper. Mr. Kunkel responded that EWEB would make clear to the court that EWEB's land alternative approach to the land trust donation replaces the amount donated via the FERC relicensing requirement.
Vice President Osanka inquired as to how environmental groups might view the alternative approach. Ms. Power responded that while the McKenzie River Trust may view this approach as competition for dollars exclusively allocated to land purchases, other entities will likely support the expansion in scope. Commissioner Anderson suggested that EWEB include in its advisory group a McKenzie River Trust representative.
Vice President Osanka commented that while he likes the idea of broadening the scope of EWEB's land trust donation to address other watershed needs, he also values the singular focus of the land trust. Ms. Power stated that she envisions a process by which EWEB selects projects that are based on EWEB's objectives. She said such a process would enable EWEB to narrow the scope of projects it funds.
Commissioner Bishop expressed concern regarding the "fuzziness" of the proposed alternative approach. Stressing her belief that a land trust is a land trust, Commissioner Bishop said she thinks EWEB has made a commitment that must be honored through a land trust donation. She said that while she supports the ideas proposed in the concept paper, she does not want EWEB's commitment to the land trust to be forgotten.
President Smith said she agreed with Commissioner Bishop's comments. She said the land trust donation and the alternative approach differ significantly in terms of "permanence." She explained that while the land trust sets aside specific lands for perpetuity, the proposed projects under the alternative approach lack the quality of permanence. In addition, President Smith said she supports the inclusion of the land trust as part of the relicensing requirement and thinks EWEB made a promise to donate to the land trust. She said that at a minimum, EWEB should include all stakeholder groups in future discussions concerning any alternative approach to the land trust donation. President Smith advised EWEB staff to be aware of duplicity when considering this approach. She said it appears that the McKenzie Watershed Council, rather than the stewardship fund, could be used as a funding vehicle for some of the proposed projects. President Smith said she was concerned about the "fuzziness" of the proposed alternative approach relative to the solid, goal-oriented commitment EWEB made to the stakeholder groups.
Commissioner Anderson, directing her comments to Commissioner Bishop and President Smith, said EWEB could allocate a portion of the proposed stewardship fund to the land trust. She said she agrees that EWEB should solicit the involvement of those stakeholders who participated in establishing the original land trust donation agreement. Commissioner Bishop said that in the meantime, EWEB could begin identifying the specific projects it will fund.
Vice President Osanka agreed that the projects proposed under the alternative approach offer significantly less permanence than the land trust. Noting that $1.5 million does not go far toward the purchase of lands, Vice President Osanka said that subtracting a portion of that amount for other projects, as proposed under the alternative approach, will have a great impact. He said he prefers that EWEB continue to donate $1 million to the land trust and explore alternative ways to fund other projects. He said that if EWEB moves forward with the stewardship fund approach, he would like a fixed percentage of the fund donated to the land trust.
President Smith proposed that the McKenzie Watershed Council is EWEB's stewardship program, although it has never been designated as such. She suggested that EWEB consider supporting the proposed stewardship projects by increasing its commitment to the McKenzie Watershed Council. Commissioner Bishop and Vice President Osanka expressed support for this suggestion.
Noting that land acquisition may be more meaningful in the lower McKenzie, Commissioner Anderson suggested that EWEB focus on the acquisition of lands in that area while increasing its contribution to the McKenzie Watershed Council in the interest of such projects as Carmen Smith.
Noting that land trust funds could go further if EWEB could define greenway or riparian strips as protected easements or covenants, President Smith said she would like to consider the land trust as broader than simply purchasing available parcels.
Ms. Power summarized the Board's feedback as
President Smith stated that although she is absolutely committed to the land trust concept, she would be interested in revisiting with the stakeholders how it is structured. She said a review of the land trust structure would be beneficial if it improved the efficiency of funds while maintaining its goal of ensuring permanent protection of the McKenzie River corridor.
The meeting adjourned at 9 p.m.