Board Members present: Jeff Osanka, Mike Dyer, Sandra Bishop, and Dorothy Anderson. President Smith was excused.
Others present: Randy Berggren, Manda Bednarczyk, Cathy Bloom, Tom Buckhouse, Dick Helgeson, Garry Kunkel, Roseanna McArthur, John Mitchell, Laurie Power, Scott Spettel, Dick Varner, and Krista Hince of the EWEB staff; Don Haagensen, EWEB Special Counsel; Nick Urhausen, Margaret Waite, members of the public; and Kim Kunkel, Minutes Recorder.
In the absence of President Smith, Vice President Osanka called the meeting to order.
AGENDA CHECK
Vice President Osanka determined there was consensus to approve the agenda, as written.
ITEMS FROM BOARD MEMBERS
Vice President Osanka reported that constituents have contacted him regarding the potential felling of trees on Adams Street. Vice President Osanka reiterated his request issued during a previous meeting that a Board discussion regarding EWEB's tree trimming policies be included on a future agenda.
With regard to the issue involving the fate of approximately 25 trees on Adams Street between 3rd and 5th Avenues, Commissioner Bishop reported that she, several members of the EWEB and City of Eugene staff, and approximately 100 citizens attended a June 30 public meeting concerning the matter. To provide a historical context, Commissioner Bishop explained that EWEB and the City of Eugene have an intergovernmental agreement wherein EWEB line crews are obligated to report to the City all findings of badly damaged trees. She said such a report was filed concerning the trees on Adams Street and, due to the volatility within this community regarding the removal of trees, the City of Eugene and EWEB are taking a sensitive approach to the matter. Commissioner Bishop said that many who attended the emotional public meeting were "professional organizers." She said comments by citizens reflect an apparent distrust of the City of Eugene, and there was little or no distinction made between the City of Eugene and EWEB.
Commissioner Bishop noted that although EWEB has fulfilled its intergovernmental agreement with the City in terms of reporting the damaged trees, EWEB does not want to simply abandon the City at this juncture. She acknowledged that any move toward removing the damaged trees will undoubtedly result in civil disobedience. Commissioner Bishop said the purpose of the public meeting was to announce the following next steps:
Commissioner Bishop said the rationale for EWEB's continued involvement in this issue is that the utility, due to its past tree trimming practices for example, has some responsibility for the current condition of the Adams Street trees. She announced that EWEB and City of Eugene staff were scheduled to meet the following day to debrief the June 30 public meeting. Noting that some citizens want EWEB to expend funds to underground or re-route its power lines, Commissioner Bishop suggested that the Board discuss and determine EWEB's role in this matter. Additionally, she said citizens apparently lack factual information concerning the issue. Commissioner Bishop said that any contribution by EWEB to the City of Eugene's effort to provide citizens with factual information concerning the Adams Street trees would be helpful.
Vice President Osanka inquired as to the cost of re-routing or under grounding power lines. Mr. Berggren said staff could provide the Board with an estimate during a future meeting.
Mr. Kunkel stressed the fact that the City has proposed a step-by-step process. He said the arborists' opinions will be considered before a solution is proposed.
Commissioner Bishop noted that she had conveyed to citizens that it is unlikely the EWEB Board will recommend the removal of the trees under any circumstance.
CORRESPONDENCE
General Manager Randy Berggren expressed appreciation for staff members who volunteered during the EWEB picnic. Additionally, Mr. Berggren reviewed the following information items included in the meeting agenda packet:
Mr. Berggren requested that the Board submit comments regarding the intervener brief no later than 5 p.m. on August 6.
Mr. Berggren reviewed draft agendas for the August 11 Work Session and Special Board Meeting.
PUBLIC INPUT
Margaret Waite, 3499 Gilham Road, questioned EWEB's Mission Statement regarding the utility's responsiveness in its delivery of service. Ms. Waite stated that because EWEB's "question and answer" pamphlet concerning the utility's water system development charges suggests that the charge is applicable to new development only, she was led to believe that the property she was preparing to sell was exempt. She said this caused her to miss the July 1 permit application deadline, resulting in a $1,700 system development charge. Ms. Waite stated that her arguments against the charge have been ineffective.
Additionally, Ms. Waite stated that although she had planned to have her water meter located in front of the house, EWEB determined that the meter should be located in a concrete area which will result in greater expense to her. She said EWEB explained that because the owner of an adjacent lot may want to connect to EWEB's water system as well, the utility wants to install two meters at once. Ms. Waite stated that she has offered to pay the difference it will cost EWEB to install two separate meters, but has not received a response from EWEB staff. She said the meter was scheduled for installation the following day.
Water and Steam Divisions Director Dick Helgeson proposed deferring installation of the meter. He said he would inquire into the options that are available with regard to this situation.
Ms. Waite complained that EWEB did not provide adequate notice to the public, via the utility's billing inserts, concerning the applicability of its water system development charges.
Nick Urhausen, 2858 Warren Street, expressed opposition to the EWEB General Manager's Supplemental Retirement Plan recently approved by the Board. He said that as of January 1, 2,006, EWEB will owe Mr. Berggren $439,000. He said this amounts to a $62,000 per-year bonus, which places Mr. Berggren significantly above market for his position. Mr. Urhausen suggested that the EWEB Board reconsider its decision. In addition, he said a performance requirement should be attached to the supplemental retirement plan.
MINUTES
The Commissioners reviewed the minutes of the July 14, 1998, Work Session and Special Board Meeting.
Referring to page 3 of the Work Session minutes, Vice President Osanka requested that paragraph 5 be followed by a new paragraph stating: "Vice President Osanka said he favors rebating to the public the entire $6 million in accumulated assets."
Referring to the paragraph under Items From Board Members on page 1 of the Special Board Meeting minutes, Commissioner Anderson requested that the text indicate, parenthetically, that a decision regarding whether to enact the "new policy" will be resolved at a future Board Meeting.
Referring to page 1 of the Special Board Meeting minutes, Commissioner Bishop requested that sentence 2 in paragraph 3 under Correspondence be amended to state "She said she would provide staff with a memorandum indicating her position with regard to the compensation issue.
Referring to page 4 of the Special Board Meeting minutes, Vice President Osanka requested that paragraph 3 be followed by a new paragraph stating: "Vice President Osanka stated that the Year 2,000 problem is one of the most serious issues EWEB faces and thinks EWEB should spend whatever amount of money necessary to provide water and electricity to its customers."
Referring to paragraph 6 on page 5 of the Special Board Meeting minutes, Vice President Osanka requested that "Commissioner Osanka" be replaced with "Vice President Osanka."
Commissioner Dyer moved, seconded by Commissioner Bishop, to approve the minutes of the July 14, 1998, Work Session and Special Board Meeting, as amended. The motion passed unanimously.
ENVIRONMENTAL REMEDIATION COST SHARING
Environmental Manager Laurie Power requested Board approval of a resolution authorizing EWEB's General Manager to complete negotiations on and to sign for EWEB an agreement with certain parties for the parties to pay part of the costs for the necessary investigation and cleanup of hazardous substances present on EWEB's property in consultation with the Environmental Manager and legal counsel for EWEB. The General Manager shall report to the Board periodically on the status of the investigation and cleanup.
Commissioner Dyer moved, seconded by Commissioner Bishop, to approve a resolution authorizing EWEB's General Manager to complete negotiations on and to sign for EWEB an agreement with certain parties for the parties to pay part of the costs for the necessary investigation and cleanup of hazardous substances present on EWEB's property in consultation with the Environmental Manager and legal counsel for EWEB. The General Manager shall report to the Board periodically on the status of the investigation and cleanup. The motion passed unanimously.
GRANT COUNTY/PRIEST WANAPUM
Referring to a memorandum included in the meeting agenda packet, Power Management & Planning Manager Scott Spettel said the purpose of this presentation was to obtain Board direction regarding whether EWEB should respond to Grant PUD's offer for EWEB to purchase power beyond the initial license terms for the Priest Rapids and Wanapum Hydroelectric Projects. He explained that this offer is the result of a FERC order specifying the means by which all re-license applicants must share project output.
Mr. Spettel summarized that Grant PUD has proposed that purchasers model a new purchasing relationship in a manner similar to existing relationships. This has been characterized as an "at costs, slice-of-cake" purchase of project output. Grant has requested a response by August 31. Mr. Spettel stated that as of July 30, several of the purchasers have indicated that they intend to pursue an appeal of the FERC decision in the DC Court of Appeals. At least one purchaser (PacifiCorp) has indicated formally to Grant PUD that they do not intend to purchase under Grant's current offer.
Mr. Spettel presented a brief overview of EWEB's alternatives. He said staff recommends that EWEB respond to Grant's offer by outlining the terms in which the utility is interested. He said EWEB's terms are as follows:
Additionally, Mr. Spettel said staff recommends that EWEB indicate that it will remain open to pursuing alternative project structures with Grant PUD in the event that FERC does not approve the contracts associated with an "at-cost, slice-of-cake" approach.
Commissioner Anderson inquired as to why Grant PUD was rushing to obtain contracts. Mr. Spettel responded that Grant PUD needs to prepare for relicensing in the near future. He said Grant is asking participants to commit to "slice-of-cake" contracts; however, participants are regarded as purchasers rather than equity holders. He said that is unacceptable from his point of view.
Vice President Osanka inquired as to the argument against simply rejecting the offer. Mr. Spettel responded that the opportunity presented by Grant PUD's offer is quite significant.
Commissioner Dyer moved, seconded by Commissioner Bishop, to authorize staff to communicate to Grant PUD EWEB's interest in its offer for EWEB to purchase power beyond the initial license terms for the Priest Rapids and Wanapum Hydroelectric Projects, as outlined in staff's recommendation. The motion passed unanimously.
BOND RESOLUTION FOR WYOMING WIND PROJECT FINANCING
Referring to a memorandum included in the meeting agenda packet, Assistant Treasurer Cathy Bloom requested Board approval of a resolution to proceed with the financing of the Wyoming Wind Project.
Commissioner Dyer moved, seconded by Commissioner Bishop, to approve a supplemental resolution authorizing the issuance of not to exceed fifteen million dollars ($15,000,000) aggregate principal amount of Electric Utility System Revenue Bonds or other evidences of indebtedness of the City of Eugene, Oregon, for the purpose of financing improvements to the Electric Utility System, including facilities for the generation of energy through wind power projects; approving the preparation of a preliminary official statement, bond resolution and related documents; appointing Senior Managing Underwriter; authorizing certain other acts in connection with the sale of said bonds. The motion passed unanimously.
The Board agreed to defer discussion of issues related to the Adams Street trees until staff provides Commissioners with background information.
The meeting adjourned at 8:55 p.m.