Board Members present: Susie Smith, Jeff Osanka, Mike Dyer, Sandra Bishop, and Dorothy Anderson.
Others present: Randy Berggren, Manda Bednarczyk, Dick Helgeson, Cathy Hamilton, Krista Hince, Garry Kunkel, Kris Middlewood, Jim Origliosso, Brenda Sirois, Scott Spettel, Dick Varner, and Ron Wilson of the EWEB staff; Sky Chamard, John Clark, Randy Gray, Randy Hledik, Kristine Hutchinson, Lisa Petersen, Grant Spies, and Kathi Wiederhold, and Gary Fiske, Water Resource Consultant, Water Working Group Members; Members of the Public; and Kim Kunkel, Minutes Recorder.
President Smith called the meeting to order.
AGENDA CHECK
Vice President Osanka expressed his opinion that the Water Supply Plan Working Group Recommendations discussion may require more time than the amount indicated on the agenda. President Smith suggested that the Board defer consideration of the amount of time allotted for the aforementioned discussion item until it reaches that item on the agenda .
President Smith determined there was consensus to approve the agenda, as written.
ITEMS FROM BOARD MEMBERS
Vice President Osanka reported that he has been contacted by constituents who are concerned about the possible removal of trees on Adams Street. He said constituents seem to feel they were excluded from the decision-making process regarding this matter and think the City proposed a plan for how to address the situation prior to receiving public input. Vice President Osanka said that to the extent these claims are true, the Board should consider the aforementioned concerns in its discussions.
Commissioner Bishop suggested that Vice President Osanka forward to City of Eugene staff member Christine Anderson the names and concerns of those constituents with whom he has spoken. She stressed that the City, not EWEB, is in control of the Adams Street tree process.
CORRESPONDENCE
General Manager Randy Berggren reviewed draft agendas for the August 18 Work Session and Special Board Meeting. He said Ms. Hince will contact Commissioners with regard to the dates they are available to attend an additional Board Meeting in September.
PUBLIC INPUT
There was no public input.
WATER SUPPLY PLAN WORKING GROUP RECOMMENDATIONS
Water and Steam Divisions Director Dick Helgeson said the purpose of this presentation was to present to the Board the Water Resource Working Group's final report and recommendations. Mr. Helgeson commended working group members and participating EWEB staff and Board members for their dedication and hard work throughout the past 14 months.
At the request of Water Resource Working Group Facilitator Kathi Wiederhold, members of the 13-member working group who were present introduced themselves. Those present included: Sky Chamard, John Clark, Randy Gray, Randy Hledik, Kristine Hutchinson, Lisa Petersen, and Grant Spies. Ms. Wiederhold acknowledged the participation of EWEB Board President Susie Smith and Commissioner Mike Dyer, as well as EWEB General Manager Randy Berggren and Water Division Director Dick Helgeson.
Ms. Wiederhold said the working group presentation would include
Ms. Wiederhold said the working group presentation would be followed by a staff presentation consisting of
Referring to the EWEB Water Resource Working Group Final Report, copies of which were included in the meeting agenda packet, Ms. Wiederhold presented a brief overview of the composition, mission, and group process of the Water Resource Working Group.
Working Group member Lisa Petersen presented a brief overview of the time frame related to the various phases of the group's work which began in June 1997, and concluded in June 1998. Noting that the group identified growth and system capacity as primary issues of concern for EWEB, Ms. Petersen said the group crafted six key recommendations by which EWEB might guide the development of its water supply strategy.
Working Group member Randy Hledik reviewed the following key recommendations with respect to the group's preferred resource strategy:
1)EWEB should optimize the transmission and storage portion of the water system in two ways, regardless of which resource strategy it selects:
Extend the 45-inch transmission main to Hawkins Reservoir in southwest Eugene. This will relieve some major hydraulic constraints and substantially increase the capacity of the distribution system.
Develop additional storage at Hayden Bridge for emergency back-up, equalization of system peaks, and more efficient operation of the filtration plant.
2) EWEB should implement enhanced voluntary conservation programs that target outdoor water uses and focus on pubic education . EWEB should refrain from adopting mandatory conservation measures until the need grows and the community becomes more aware of the need and opportunities.
3) EWEB should not include a seasonal rate structure, a "feebate" rate structure, or an inverted rate structure for conservation in the water supply strategy it selects.
4) EWEB should, in the intermediate-term, expand Hayden Bridge and incrementally develop groundwater as needed for a back-up source.
5) EWEB should not make a decision on longer-term supply options at this time and should take all necessary actions to keep its options open in the long-term.
6) EWEB should plan for near-perfect reliability. This means striving for the highest reliability possible, knowing that perfect reliability doesn't exist, and accepting some risk of shortage under unusual circumstances, such as drought or severe weather.
Ms. Petersen presented a brief overview of eight additional working group recommendations on related or collateral issues to be considered by the Board.
Working Group members and staff/Board participants made comments regarding their individual experiences of the process and personal assessments of the final recommendations.
The Commissioners addressed questions and comments to working group members.
Noting that her review of the recommendations has been limited due to time constraints, Commissioner Bishop said her initial response is that she is impressed with the sensitivity of the recommendations in terms their connectivity to the local community. She said the working group composition appears to be representative of EWEB residential ratepayers as well as larger industrial customers.
Commissioner Anderson expressed appreciation for the working group members' dedication. Additionally, she thanked the group for its comments concerning the importance of EWEB's continued involvement in the McKenzie Watershed Council (MWC). She said she will forward the working group's recommendations to the MWC for discussion.
Vice President Osanka inquired as to whether the notion of utilizing the Willamette River as an EWEB water source was laid to rest early in the process. Mr. Clark responded that the working group considered the idea; however, due to the public perception that Willamette River water is not good drinking water, the group decided against pursuing the matter in the short- or intermediate-term. Mr. Clark noted that the working group considers the Willamette River a strong option for the long-term, particularly if rapid growth continues. Mr. Gray added that both cost and environmental impacts of developing Willamette River sites were considerations as well.
Vice President Osanka said he found the Growth Management discussion, included in the working group's Final Report, to be troublesome. The working group's recommendation regarding growth management states: "EWEB should not and, in fact, cannot regulate community growth. EWEB should furnish information and data to the local government agencies that regulate growth to assist in their decision-making processes." Vice President Osanka said that although EWEB does not regulate community growth, its decisions impact the growth of the community. He said he wonders whether the wording used by the working group conveys a message other than that which was intended. Vice President Osanka said he does not think the group would claim that EWEB has no impact on community growth.
Mr. Chamard acknowledged that EWEB has an impact on community growth; however, he said EWEB's responsibility is to advise local government agencies regarding the impacts of such growth-related matters as urban sprawl. He said the City Charter does not grant the utility responsibility or authority to regulate growth. Mr. Chamard said he supports the recommendation, as written.
Vice President Osanka argued that the Charter does not state that EWEB does or does not have discretionary authority. He said that during the Hyundai debate, the issue of Charter authority was frequently raised and EWEB's legal counsel was prepared to argue the matter either way, depending on the direction issued by the Board. Both President Smith and Commissioner Anderson pointed out that this statement was inaccurate
President Smith asked that the focus of the discussion return to the working group's recommendations to the Board. She said the purpose of this presentation was not to rewrite or debate the working group's recommendations, but rather to receive the report and ask clarifying questions.
Referring to the aforementioned Growth Management recommendation, Commissioner Bishop noted that it was stated as a negative. She said she would like the recommendation to make a stronger statement regarding EWEB's moral responsibility to inform local governments of the actual costs, economic and otherwise, related to growth. Commissioner Bishop inquired as to whether the working group addressed non-economic costs, such as environmental impacts.
Ms. Petersen responded that the working group rated each option according to various factors, including environmental impacts, and then totaled the scores. Ms. Sirois referred the Board to page 9 of the Working Group's Final Report for the criteria by which the options were weighed. Ms. Petersen noted that the working group wanted to encourage citizens who are concerned about growth to become involved at the City Council level rather than contacting EWEB. She said City Council is where public involvement should begin.
Referring to the recommendation that "EWEB should not make a decision on longer-term supply options at this time and should take all necessary actions to keep its options open in the long-term," Commissioner Bishop inquired as to the nature of the working group's discussion concerning this matter. Ms. Petersen explained that the working group concluded that it could not speak for the community as it will exist 30 years in the future. She said the group preferred to establish a specific direction for short- and intermediate-term action, and provide general direction as to what options might be explored further in the future. Mr. Chamard added that the working group did not want to establish time limits with respect to the long-term options.. He said EWEB's staff is competent and will determine when their issues must be addressed as the future unfolds.
Vice President Osanka inquired as to whether the working group had discussed the option of an inverted rate structure. Mr. Hledik responded that heavy users have an expectation of and dependency on the current structure. He said changing the rate structure in a short-term time frame would have a significant impact on those users. He said a longer-term conversion process would be required for a shift in the rate structure. In addition, Mr. Hledik said that because the public perception is that EWEB has an abundant water supply, the working group was concerned that the community would not accept mandatory imposition of rate-induced conservation methods. Mr. Hledik said the working group's data showed that under an inverted rate structure, EWEB would have to increase water rates significantly to realize any real savings. He said financial disincentives should not be imposed. Mr. Hledik said that even a flat rate would negatively impact those accustomed to the current rate structure.
Ms. Sirois thanked members of the working group, distributed to the Board supplemental graphical information, and introduced EWEB Water Resource Working Group Consultant Gary Fiske.
Referring to a series of overhead displays, Mr. Fiske reviewed how the recommendations of the working group would be used to develop the strategies contained in the Draft Water Supply Plan. He said the plan contains near-, medium-, and long-term strategies. Mr. Fiske said near-term (3-4 years) strategies include voluntary conservation and system optimization; medium-term strategies include Hayden Bridge expansion (production) and deep aquifer (emergency); and long-term strategies include Willamette upstream, fish hatchery, or deep aquifer (production).
Referring to graphical data distributed to the Board, Mr. Fiske reviewed a comparative evaluation of the aforementioned resource strategies by cost, protection against catastrophic events, and environmental impacts. He indicated that this information and the draft plan itself would be presented tot he board in grater detail at a work session on September 1.
With regard to the public involvement component of the Water Resource Plan, Mr. Douglass stated that additional public outreach opportunities would be scheduled in the fall. In addition, he said EWEB's fall edition of its Pipeline publication would include an insert devoted to the Water Resource Plan. Mr. Douglass said EWEB may also make presentations regarding the plan to various neighborhood groups. Mr. Douglass encouraged the Board to forward to him additional suggestions regarding public involvement.
KLAMMATH FALLS PROJECT
Referring to a series of overhead displays, EWEB Power Management & Planning Manager Scott Spettel said the purpose of this presentation was to provide background information to the Board in order to determine whether EWEB may have a potential interest in purchasing output from the proposed Klamath Falls Cogeneration Project, either independently or through action with other Oregon Utility Resource Coordinating Association (OURCA) members.
Mr. Spettel reviewed timing considerations related to the purchase, attributes of a combined cycle combustion turbine, typical environmental impacts from combustion turbine projects, highlights of the proposed cogeneration project, and the environmental responsiveness of the proposed project.
The Board directed staff to move forward and express interest in the Klamath Falls Cogeneration Project. Mr. Spettel said staff would return to the Board with additional details.
The meeting adjourned at 9:40 p.m.