Board Members present: Sandra Bishop, Mike Dyer, Jeff Osanka, and Susie Smith. Commissioner Anderson was excused.
Others present: Randy Berggren, Manda Bednarczyck, Mel Damewood, Marty Douglass, Kevin Fahey, John Femal, Dick Helgeson, Garry Kunkel, Roseanna McArthur, Kris Middlewood, John Mitchell, Mat Northway, Mark Oberle, Jim Origliosso, Ken Wedin, Dick Varner, Debra Wright, and Krista Hince of the EWEB staff; various members of the public; and Kim Kunkel, Minutes Recorder.
President Smith called the meeting to order.
AGENDA CHECK
Vice President Osanka and Commissioner Bishop expressed concern that the amount of time allotted on the agenda for the Year 2,000 Plan and Review of Wind Communication Plan items was insufficient. The Board agreed to defer to the end of the agenda the Review of Wind Communication Plan Item.
ITEMS FROM BOARD MEMBERS
President Smith provided Mr. Berggren with a Solar Energy '98 Conference brochure and requested that Commissioners receive copies of the brochure in the next Board Meeting agenda packet. She encouraged staff to consider reinstating EWEB's sponsorship of the conference.
President Smith reported that she had received a letter from former McKenzie Watershed Council (MWC) member George Grier reflecting his comments concerning the Water Supply Plan Working Group's Final Report. She said she forwarded the letter to Mr. Helgeson for distribution to Board Members. She said she would confer with Mr. Helgeson and Mr. Douglass regarding a response to Mr. Grier's letter.
MINUTES
The Commissioners reviewed the minutes of the August 4, 1998, Executive Session, Work Session, and Regular Board Meeting.
Referring to paragraph 1 on page 4 of the Regular Board Meeting minutes, President Smith requested that "President Anderson" be replaced with "Commissioner Anderson."
Vice President Osanka moved, seconded by Commissioner Dyer, to approve the minutes of the August 4, 1998, Executive Session, Work Session, and Regular Board Meeting, as amended. The motion passed, 3:0; with President Smith abstaining.
CORRESPONDENCE
Mr. Berggren reported that EWEB's new Customer Account Management System has been fully implemented and is operative.
Mr. Berggren reviewed several information items included in the meeting agenda packet, including
Mr. Berggren reviewed draft agendas for the September 15, 1998, Work Session and Special Board Meeting.
Mr. Berggren said that due to scheduling difficulties, staff has been unable to confirm a date for an additional September Board Meeting.
PUBLIC INPUT
Moshe Imerman requested that EWEB's sensitivity and level of detail exhibited in its Water Supply Plan be extended to the area of potential health effects of tap water on citizens. He said this matter should be a central, rather than marginal concern. Noting that he managed a water analysis laboratory while attending college, Mr. Imerman said he was astounded to hear that EWEB staff considered insignificant the fact that well water contains 300 percent more chemicals than McKenzie River water. Mr. Imerman said he would like EWEB to utilize such instruments as the volmeter, dermatron, vega test, and avatar to assess the chemistry of aquifer water. He said aquifer water is significantly different than McKenzie River Water in terms of PH, dissolved carbon dioxide, heavy metals, and arsenic levels. He said these differences threaten not only the health of citizens, but the functioning of semiconductor companies, for example. In summary, Mr. Imerman encouraged EWEB to look closely at the potential health impacts of deep aquifer well water and expressed opposition to EWEB's utilization of deep aquifers as a drinking water source. He said that if EWEB does elect to utilize aquifers, however, the utility should commit to use them for emergency backup supply only, rather than for production.
Nancy Draper expressed concern regarding the existence of a backup filtration system in the event that, as a complication related to the "Year 2000 problem," EWEB's Hayden Bridge facility were to lose power and become inoperative. In addition, Ms. Draper inquired as to how power from the hydroelectric power plant at Mount Hood travels to Eugene. Mr. Berggren responded that the power makes its way through the Portland General Electric and Bonneville Power Administration grid.
Garry Draper requested a full and accurate disclosure to rate payers and citizens regarding EWEB's Year 2000 readiness. He observed that many corporations are disclosing minimal information. Mr. Draper stated that because EWEB is a near-monopoly provider of energy, citizens should know whether to expect continuous service in the face of Year 2000 computer-related complications. He said citizens need this information to make informed decisions regarding both business and personal matters.
Kim Darling inquired as to EWEB's strategy for informing the public of likely power outages due to the utility's unpreparedness for the Year 2000. She said many citizens are concerned about EWEB's ability to provide continuous service in the Year 2000. She said that if people with expertise in addressing Year 2000 issues come forward with information, Eugene will have time to plan and prepare as a community.
Anastasia Sendo said she attended EWEB's open-house regarding the Water Supply Plan and has questions regarding the short-, mid-, and long-range plans discussed by EWEB staff and Working Group members. She requested that she be sent meeting agenda packets, notices of upcoming public hearings on the Water Supply Plan, and a time line of the public process and Board's consideration of the plan. President Smith suggested that Ms. Sendo have her name added to EWEB's mailing list. Vice President Osanka suggested that Ms. Sendo submit to the Board, in writing, any specific concerns.
YEAR 2000 PLAN
Referring to a memorandum included in the meeting agenda packet and a series of overhead displays, copies of which were distributed to the Board, EWEB's Year 2000 Plan Project Manager, Kevin Fahey, prefaced his presentation by explaining the Year 2000 issue.
Mr. Fahey said the computer chips and software programs that have launched society into the computer era are located in billions of products, processes and services throughout the world. Due to computer memory space limitations from previous years, often only the last two digits of a date field are stored in these chips and programs will cause problems because the logic associated with them will not be able to distinguish between the year 1900 and year 2000.
Mr. Fahey presented a brief overview of EWEB's Year 2000 (Y2K) Project Plan, highlighting the risks and time line associated with the following five areas of the plan:
In summary, Mr. Fahey said the Y2K issue is a unique and unprecedented event that could threaten the mission of our company and greatly impact this community. Based upon EWEB's initial cost figures, staff estimates that EWEB will require $2.2 million dollars to effectively address this issue per the strategies, tasks, and time lines outlined in the plan.
Mr. Fahey said next steps include the continued implementation of the plan and providing Board Members with periodic status reports highlighting significant changes to the plan and/or cost estimates.
Commissioner Dyer inquired as to whether the proposed period of nine months will be adequate to replace, modify, or test effected equipment. Mr. Fahey said that at the present time, staff believes nine months will be adequate. He noted that once EWEB's inventory and assessment of affected equipment is complete, staff will be in a better position to determine whether nine months is adequate. He said inventory and assessment is currently underway. Mr. Fahey noted that EWEB is utilizing the assistance of an outside engineering company.
Vice President Osanka noted that EWEB is placing a high level of reliance on the outside engineering company's assessment of EWEB's equipment. He inquired as to what guarantee EWEB has that the information provided by the company will be accurate. He said he assumes staff will conduct an additional review process to identify possible errors made by the company. Mr. Fahey said the engineering company EWEB is utilizing has a great deal of experience working with other utilities on Year 2000 issues. Noting that the outside company will work in conjunction with EWEB engineers, Mr. Fahey said he is confident in the accuracy of the assessment that will be provided. Mr. Fahey said EWEB will ultimately test the "fix" that is recommended.
Vice President Osanka inquired as to the accuracy of the estimated $2.2 million project cost. Mr. Fahey said that $2.2 million is a current estimate and he is uncomfortable speculating about the accuracy of the estimate until additional information regarding the status of EWEB's equipment is acquired. Vice President Osanka proposed increasing the estimate, noting that the full amount would not have to be spent. Commissioner Bishop said she thinks it is important that the public knows that the current estimated cost of the project is $2.2 million. She said it is clear to her that adequate contingency funds are available to address the Year 2000 issue.
Vice President Osanka suggested that EWEB, in response to SELCO Credit Union's comments during a recent presentation to Oregon Public Networking, might want to consider accepting script from some financial institutions as payment for bills. He acknowledged that although it is an unusual contingency plan, it may be a worthwhile consideration.
Noting that the Year 2000 Plan is high-level, President Smith predicted that specific questions will be raised by the public. She suggested that staff compile a list of commonly-asked questions. President Smith suggested that while developing the communications strategy of the plan, staff address those commonly-asked questions.
Noting that many institutions are divulging little information regarding Year 2000 readiness due to fear of making inaccurate statements, Vice President Osanka said that if this is true for EWEB, the Board should discuss and determine a course of action. He said EWEB has a responsibility to provide information to the public. Vice President Osanka expressed interest in a legal analysis concerning EWEB's provision of Year 2000 related information.
LCC EDUCATION GRANT
Referring to a memorandum included in the meeting agenda packet, Community Education Coordinator John Femal and Energy Management Services Manager Mat Northway presented an overview of the proposed establishment of a Lane Community College (LCC) Education Grant.
Mr. Femal explained that the purpose of the $120,000 per year EWEB LCC Education Grant is to establish an inter-governmental agreement with LCC which will provide an education funding mechanism that benefits both EWEB and LCC.. The LCC Education Grant is designed to replace the voluntary "in-lieu-of-tax" payments with an education services grant system whereby LCC realizes base funding for their Energy Management Program and EWEB's education support is directly connected with the mission of the utility.
Mr. Northway recommended Board approval of two Board resolutions. The first resolution would officially terminate the "in-lieu-of-tax" payments made to LCC.. The second resolution would authorize EWEB's General Manager to enter into intergovernmental agreements to establish an education grant with LCC.. Copies of the resolutions were attached to the aforementioned memorandum.
Commissioner Bishop expressed support for the proposed education grant, particularly because it eliminates the "in-lieu-of-tax" payment. Commissioner Bishop noted that LCC's Energy Management Program advertisement in the newspaper does not include EWEB's logo. She inquired as to whether EWEB's logo could be added. Mr. Northway said it could be added.
Vice President Osanka said he also supports eliminating "in-lieu-of-tax" payments in general. For the record, Vice President Osanka declared that as an LCC employee, he has a potential conflict of interest in this matter. He said, however, that he would cast a vote.
Vice President Osanka moved, seconded by Commissioner Dyer, to approve the following resolutions:
Resolution 1:
WHEREAS, since the 1950's, the Eugene Water & Electric Board (EWEB) has made in-lieu-of-tax payments to Lane Community College as allowed by ORS 307.090; and
WHEREAS, EWEB elects to discontinue these payments effective July 1, 1998.
NOW, THEREFORE, BE IT RESOLVED that the Eugene Water & Electric Board hereby discontinues payments in-lieu-of-taxes to Lane Community College effective July 1, 1998.
Resolution 2:
WHEREAS, the Eugene Water & Electric Board (EWEB) desires to establish an Education Grant with Lane Community College that supports educational activities that develop and strengthen an understanding of the origin, development and utilization of energy and water resources, including concepts, processes, and the interrelationship between society and the environment.
WHEREAS, said Grant Program will benefit both EWEB and the Lane Community College by providing education funding mechanism that will support education activities directly connected with EWEB's mission.
NOW THEREFORE, BE IT RESOLVED that the General Manager is hereby authorized to execute an Agreement establishing an Education Grant with Lane Community College. Said Education Grant will be subject to an annual review and approval.
The motion passed, unanimously.
GRANTING OF SLOPE EASEMENT TO UNIVERSITY COMMONS
Referring to a memorandum included in the meeting agenda packet, Real Property Specialist Mark Oberle reviewed background information and issues related to the granting of a slope easement to University Commons.
Vice President Osanka moved, seconded by Commissioner Bishop, to approve the easement for University Commons for a consideration of $500. The motion passed unanimously.
KLAMATH FALLS PROJECT LETTER OF INTENT
Power Management & Planning Manager Scott Spettel distributed and reviewed a revised letter of intent regarding the proposed Klamath Falls Cogeneration Project.
Vice President Osanka moved, seconded by Commissioner Dyer, to authorize EWEB's General Manager to proceed with the direction issued by the Board as reflected in the letter of intent and terms sheet.
REVIEW OF WIND COMMUNICATION PLAN
Referring to a memorandum and attachments included in the meeting agenda packet, and a series of overhead displays, copies of which were distributed to the Board, Energy Management Services Manager Mat Northway and External Communications Coordinator John Mitchell reviewed EWEB's Windpower Communications Plan.
Mr. Mitchell explained that the communications objective is to facilitate the achievement of the marketing plan goals. He said there are several marketing objectives for EWEB Windpower, but the five major goals are to:
Mr. Mitchell stated that possible scenarios include the following:
The Planned Scenario: We promote the program at a calculated level using existing communications tools and mechanisms as listed in this plan which are expected to achieve full subscription in two years.
Scenario 2: We announce the start of the program and the initial response from customers achieves full subscription in less than one year.
Scenario 3: We promote the program and initial activity indicates less than expected numbers in terms of subscription rate.
Mr. Mitchell stated that in the event Scenario 2 occurs, EWEB will develop revised messages and mechanisms to communicate those messages. In the event that Scenario 3 occurs, EWEB will ramp up communications with residential customers and perhaps look into developing promotional partnerships with commercial and industrial customers.
Mr. Mitchell said the key result areas of the plan are
Mr. Mitchell briefly reviewed the strategies associated with each key result area.
With regard to the possible scenarios, Commissioner Bishop said she supports deferring to residential customers first; however, does not want to delay planning for expansion to commercial accounts. Additionally, Commissioner Bishop expressed interest in participating in the EWEB Windpower speaker's bureau. She stressed the importance of structuring the speaker's bureau such that Board members do not express their own opinions, but rather utilize a script provided by staff. Moreover, she stressed the importance of speakers restricting to facts their answers to audience members' questions. Commissioner Bishop suggested that staff print and distribute more Windpower tee-shirts.
Commissioner Dyer suggested that EWEB initially advertise and promote Windpower via bill stuffers, and assess the community's response to that medium before expanding to radio and televison advertisements, for example. President Smith concurred with Commissioner Dyer. She expressed support for using a racheted marketing approach, beginning with the Pipeline and bill stuffers. She said that if the needed subscriptions are not sold using those mediums, only then should EWEB proceed to the next level of promotion. She said she wants EWEB to take a cost-effective, phased approach to marketing Windpower.
Referring to the draft Pipeline article about Windpower, President Smith requested deleting the word "testing" from the headline. Commissioner Bishop expressed support for this suggestion.
Referring to the "break-even" numbers included in the 30-year financial analysis, Vice President Osanka said it would be intriguing to determine whether a 40-year horizon would reflect a break-even point.
The meeting adjourned at 9:40 p.m.