Board Members present: Susie Smith, Jeff Osanka, Mike Dyer, and Dorothy Anderson.
Others present: Randy Berggren, Tom Buckhouse, Dick Helgeson, Garry Kunkel, Roseanna McArthur, John Mitchell, Jim Origliosso, and Krista Hince of the EWEB staff; Peter Bartel, member of the public, and Kim Kunkel, Minutes Recorder.
President Smith called the meeting to order.
AGENDA CHECK
President Smith stated that the Public Input item would be the last item addressed that evening.
ITEMS FROM BOARD MEMBERS
Vice President Osanka reported that he has been receiving feedback from constituents who oppose the Board's recent decision to approve a supplemental retirement package for EWEB General Manager Randy Berggren. He inquired as to what might persuade the Board to reconsider its decision.
Commissioner Dyer stated that he had been contacted by several constituents requesting clarification of the issues related to the retirement package; however, he received no negative comments. He said that once constituents understood the issues, they expressed support for the Board's decision. Commissioner Dyer said the decision to approve the supplemental retirement package was made in open session and he did not care to reconsider the matter.
Commissioner Anderson reported that she had received only one negative comment. She noted, however, that after his questions were answered, the constituent said he agreed with the Board's decision.
President Smith stated that she had received no calls concerning the matter. President Smith said she was surprised that she received no calls because she thinks the facts surrounding the Board's decision were misrepresented to the public. She stressed that the outcome of a vote is a decision of the Board made on behalf of the institution and represents "good public policy." President Smith said Commissioners whose views are not represented by the outcome of a particular vote need to move on, regardless of the topic. She said she does not support further consideration of this matter.
Commissioner Anderson moved, seconded by Commissioner Dyer, to proceed to the next agenda item. The motion passed, 3:1; with Vice President Osanka opposed.
Vice President Osanka stated for the record his objection to the motion and hindrance of debate.
CONSIDERATION OF LAND TRUST RESOLUTION
Referring to a memorandum included in the meeting agenda packet, Electric Division Director Garry Kunkel explained that the attached resolution was drafted in response to a request issued by the Board during last week's Board Meeting. He said draft resolution directs staff to further explore the concept of an "Irrevocable Land Trust."
Commissioner Dyer requested confirmation that the resolution conveys only the Board's interest in exploring the concept of a Land Trust, and does not create a Land Trust or commit the Board to develop a Land Trust. Mr. Kunkel said this was correct. Mr. Berggren noted that the resolution does lay out a very specific sense of direction with regard to staff's recommendation concerning how a Land Trust might be established.
Vice President Osanka inquired as to whether it is EWEB's intention to incorporate the resolution into the legal record of the FERC lawsuit. Mr. Kunkel said that was not EWEB's intention. He said the purpose of the resolution is to make clear to the community the Board's interest in developing a land trust independent of relicensing requirements.
Vice President Osanka moved, seconded by Commissioner Anderson, to approve the resolution directing staff to further explore the concept of an "Irrevocable Land Trust." The motion passed, 3:1; with Commissioner Dyer opposed.
Noting that he has continually opposed establishing a land trust, Commissioner Dyer explained that he voted "no" on the above motion because he does not view the establishment of a land trust as consistent with EWEB's Mission. Additionally, he said he does not view the establishment of a land trust as a prudent use of EWEB's resources.
CONSTRUCTION BY DEVELOPER POLICY WAIVER
Referring to a memorandum included in the meeting agenda packet, Mr. Berggren presented a brief overview of the history of EWEB's Construction by Developer Policy which allows developers to hire their own contractors to perform water substructure work, but requires that they provide a performance and payment bond in favor of EWEB. Mr. Berggren explained that because EWEB's policy differs from the City's, and because non-contractor developers are not accustomed to paying bonds, EWEB recognizes that a revision of its Construction by Developer Policy may be warranted. He said that beginning in July, EWEB will reevaluate this policy with the intention of increasing the flexibility and ease of use for non-contractor developers.
Mr. Berggren explained that in the interim, EWEB has received a request for waiver from EWEB's current policy. John Mattot, a developer, has requested that the required performance bond be issued by his contractor, Eugene Sand and Gravel. Mr. Berggren said EWEB is comfortable with the quality of Eugene Sand & Gravel's work, and believes they would be part of the "approved contractors" list that wold be created and maintained as part of a policy rewrite. He said EWEB has consulted its general counsel and they concur that a waiver would be appropriate in this situation. Mr. Berggren stated that because this is an unusual request, EWEB would not be setting precedent, but would have an opportunity to "test the waters" of a policy revision.
Noting a conflict of interest, Commissioner Dyer said he would not be participating in the Board's discussion of this matter.
President Smith said she was uncomfortable approving a waiver without assurance that EWEB would be financially "whole" in the end. Mr. Berggren responded that EWEB could require the developer to pay any costs incurred by EWEB as the result of the waiver.
Referring to the aforementioned memorandum, Vice President Osanka said he did not agree with the claim that "Because this is an unusual request, we would not be setting precedent. . ." He said this is an unusual request only because it is the first such request. Vice President Osanka suggested that once developers learn of this request, additional requests will be made. He stressed the importance of recovering costs incurred as the result of this waiver in order to treat all developers fairly.
President Smith stated that EWEB will be setting a precedent unless it establishes specific criteria related to the granting of a waiver. She said she would feel more comfortable if there were established findings demonstrating just cause for granting this waiver. President Smith said she would be more comfortable granting the waiver if it was reflected in the minutes that the Board established as the findings and criteria for granting this waiver and all futures waivers such factors as the quality of Eugene Sand & Gravel's work, confidence in the viability of Eugene Sand & Gravel's bond, and belief that Eugene Sand & Gravel would be part of the "approved contractors" list that would be created and maintained as part of a policy rewrite.
Vice President Osanka requested that staff return to the Board with specific findings relative to justifying approval of this waiver request. He requested that these findings include assurance of full cost recovery.
Mr. Berggren summarized that the findings made with regard to approving this and all future Construction by Developer Policy waiver requests are as follows:
Commissioner Anderson moved, seconded by Vice President Osanka, to approve the Construction by Developer Policy waiver based on the above findings. The motion passed, 3:0; with Commissioner Dyer abstaining.
PUBLIC INPUT
There was no public input.
The meeting adjourned at 8:30 p.m.