Board Members present: Susie Smith, Jeff Osanka, Mike Dyer, Sandra Bishop, and Dorothy Anderson.
Others present: Randy Berggren, Manda Bednarczyk, Tom Buckhouse, Chuck Dalton, Marty Douglass, Terry Eberlein, Dick Helgeson, Garry Kunkel, Roseanna McArthur, Jim Origliosso, Dick Varner, 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 recalled, for the benefit of President Smith who was absent from the last meeting, that the Board had established a new policy stating that action items must be indicated as such on every meeting agenda. Board action on items that are not appropriately identified as "action items" on the meeting agenda will be deferred until the following meeting.
CORRESPONDENCE
General Manager Randy Berggren reported that a fatality involving an EWEB sub-contractor had occurred that day at the Persey Slide site. He said work on the project has been temporarily ceased to accommodate an investigation into the incident.
Mr. Berggren reviewed draft agendas for the July 21 Work Session and Special Board Meeting.
Commissioner Bishop announced that she would not be attending the July 21 Work Session and Board Meeting. She said she would provide staff with a memorandum indicating her position on the issues.
PUBLIC INPUT
There was no public input.
NETWORKING FOR YOUTH PRESENTATION
EWEB Customer Relations Manager Chuck Dalton introduced Networking For Youth (NFY) representative Joe Berney and Eugene City Manager pro-tem Jim Johnson. He said the purpose of this presentation was to provide NFY an opportunity to discuss whether and how its work, primarily that of networking with private and public institutions to build resources to support the healthy development of youth, resonates with EWEB's Mission.
Referring to a written proposal included in the meeting agenda packet, Mr. Berney presented a brief overview of NFY and said it was his hope that EWEB will join Networking For Youth's other financial partners, including PeaceHealth, Weyerhaeuser, and Lane County Home Builders Association, in leveraging existing resources to create more opportunities for local youth.
Mr. Berney explained that NFY advocates for the provision of five "resiliency resources" which, if consistently available, both contribute to youth development and significantly reduce problems facing local youth. These resources include
Mr. Berney said NFY's proposal stipulates that EWEB's participation would be leveraged by at least 4 to 1. The Corporation for National Service alone has committed VISTA placements valued at $1.2 million to support NFY's effort. Mr. Berney said he believes EWEB's need to allocate its accumulated assets presents an ideal opportunity to intersect corporate purpose, public purpose, need, focused attention, and the ability to make a sustainable difference in the lives of youth.
Noting that he is a member of the NFY Board representing the City of Eugene, Mr. Johnson expressed support for Networking For Youth's proposal. Mr. Johnson said the City of Eugene is actively involved in evaluating the services available to youth. For example, he said the City has realigned its recreation programs to serve at-risk youth. Mr. Johnson said NFY would be willing to provide more specific proposal if the Board was interested.
Commissioner Dyer said he was somewhat intrigued with the proposal; however, a clear connection between NFY and EWEB's Mission must be demonstrated.
Commissioner Bishop agreed that the connection must be made clear. In addition, she expressed concern with what she has experienced as public dollars "wasted" through past efforts such as Lane County Services to Children and Families. She requested a specific and measurable proposal that clearly defines where EWEB funds would go.
Vice President Osanka echoed the sentiments expressed by Commissioners Dyer and Bishop.
Noting her struggle with how the Board reads EWEB's Key Result Area #5: "community and its citizens benefit from EWEB activities" President Smith determined there was Board consensus for NFY to work with EWEB staff in developing a refined proposal.
YEAR 2000 PROJECT
Referring to a memorandum included in the meeting agenda packet, and a series of overhead displays, copies of which were distributed to the Board, Year 2000 Project Manager Kevin Fahey said the agenda of the presentation was as follows:
Following a brief overview of the history of EWEB's Year 2000 Project, Mr. Fahey explained that the "Year 2000 Problem" is the result of the fact that many computer systems store years as two characters, such as "98," and system calculations are based on that number. In the Year 2000, the two characters will be "00," thereby resulting in negative calculations.
Mr. Fahey explained that the "Year 2000 Problem" may impact EWEB in many ways. For example, EWEB has computer systems in generation and transmission, applications and infrastructures that supports the utility's core and secondary functions, and the Energy Management and Control System is not Year 2000 compliant. Mr. Fahey said early cost estimates for updating the system range from $25,000 to $750,000. He said the estimated total cost of the Year 2000 Project is $2.2 million.
With regard to how other companies are addressing the issue, Mr. Fahey said it is difficult to know. He said a lack of information exists due to legal concerns related to claiming that one's own business is compliant or another's business is non-compliant. Mr. Fahey said it appears that some companies are simply not addressing the Year 2000 issue, others are assigning the problem to the company Chief Information Officer, some are treating only critical components while allowing other parts of the system to fail if necessary, and some companies are upgrading or replacing all systems.
With respect to how EWEB is addressing the issue, Mr. Fahey said the primary goal of the Year 2000 Project is that EWEB customers, employees, and the public experience minimal disruptions to critical business functions leading up to and during the first quarter of the Year 2000. Mr. Fahey said that to accomplish that goal, EWEB has developed strategies and an estimated budget, and dedicated resources to various tasks in the following areas:
Mr. Fahey explained that an engineering firm will determine EWEB's "mission critical" applications that are currently non-compliant.
External Communications Coordinator John Mitchell presented a brief overview of EWEB's Year 2000 communications objectives, which include informing EWEB customers and the general public of the purpose of EWEB's "Year 2000 Team," describing the "Year 2000 Problem," communicating to customers and the general public the steps EWEB is taking to mitigate the problem, and assuring customers that there will be no significant interruptions in service as the result of system complications related to the Year 2000.
In closing, Mr. Fahey requested that the Commissioners monitor year 2000 related events via newspapers, Web sites, and other modes of mass communication, and discuss their questions with him or other members of the Board. Mr. Fahey said staff will submit to the Board, for its consideration and approval, a year 2000 action plan during an August Board Meeting.
Referring to statements made in an article attached to the "Year 2000 Project" memorandum that was included in the meeting agenda packet, Vice President Osanka noted that EWEB's actual project cost may be as much as 90 percent higher than the estimated $2.2 million cost. He requested that staff provide the Board with "firm numbers" prior to the next meeting. Mr. Fahey indicated that an updated estimate would likely be available at the end of August.
ELECTRIC POLICY
Referring to a memorandum included in the meeting agenda packet, Electric Division Director Garry Kunkel explained that as part of the recent effort to update EWEB's electric, water, and steam policies and procedures, staff decided in late 1997 to issue a new manual in early 1998 with appropriate administrative changes, but to hold any identified "Board-action required' revisions until they could be included on the agenda for 1998 Board review and action.
Mr. Kunkel presented a brief overview of the following four Electric Utility items staff is recommending for consideration and action by the Board:
Mr. Kunkel provided additional detail with regard to proposed changes to The E-2 Electric Rate.
Vice President Osanka moved, seconded by Commissioner Bishop, to approve the proposed Electric Utility Policies and Procedures, as amended. The motion passed, unanimously.
SYSTEM DEVELOPMENT CHARGE GRANT REQUEST FOR THE JACOBS LANE PROJECT
Referring to a memorandum included in the meeting agenda packet, Customer Relations Manager Chuck Dalton and EWEB Treasurer Jim Origliosso said the purpose of this presentation was to present to the Board a request for a $100,000 System Development Charge grant to be allocated, as follows:
1) $80,000 to Jacobs Lane Project
2) $20,000 to West Butte Town homes.
Mr. Dalton noted the presence of John Van Landingham, representing the Housing Policy Board, Jim McCoy, representing HACSA, and Richie Weinman, representing the City of Eugene.
Commissioner Dyer inquired as to how the System Development Charges would be funded if the Board was to reject the requested waiver. Mr. Weinman responded that because no other funding source is currently available, the rents and mortgages of the respective projects would increase.
Noting that he has historically voted against displacing System Development Charges, Vice President Osanka expressed his opinion that granting such a waiver would constitute cross-subsidization. He said he will vote "no" on the proposal.
Commissioner Anderson said these are quality projects that are very much needed. She said she would support the proposal.
Commissioner Dyer expressed dismay that EWEB's System Development Charge policy costs $1,000 per unit for these projects. He said he would support the proposed waiver.
Commissioner Bishop moved, seconded by Commissioner Anderson, to approve the System Development Charge grant requests for the Jacobs Lane Project and West Lane Town homes, as amended to reflect allocations of $80,000 and $20,000 respectively. The motion passed, 4:1; with Commissioner Osanka opposed.
The meeting adjourned at 9:20 p.m.