Board Members present: Susie Smith, Mike Dyer, Sandra Bishop, Dorothy Anderson, and Peter Bartel.
Others present: Randy Berggren, General Manager; Manda Bednarczyk, Ken Beeson, Cathy Bloom, Roseanna McArthur, Kris Middlewood, Jim Origliosso, Dick Varner, Debra Wright, and Krista Hince of the EWEB staff; Eric DeFreest, Jim Whitty, and Warren Wong, members of the public; and Daniel Lindstrom, Minutes Recorder.
President Smith called the Regular Meeting of the Eugene Water & Electric Board (EWEB) Board of Commissioners to order at 7:40 p.m.
OATH OF OFFICE
City of Eugene Assistant City Manager Warren Wong administered the oath of office for newly elected Commissioner Peter Bartel and re-elected Commissioner Susie Smith, from the November 1998 General Election.
President Smith and Commissioner Bartel signed documents affirming their acceptance of the responsibilities of their office.
President Smith welcomed Commissioner Bartel to the Board.
AGENDA CHECK
President Smith determined that no Commissioners wished to alter the proposed agenda.
ELECTION OF BOARD OFFICERS
President Smith reminded Commissioners that Board Bylaws had been amended to eliminate seniority requirements for election of officers.
Commissioners discussed benefits and disadvantages in the use of seniority to determine leadership roles. Commissioners also discussed the availability and unavailability of members to serve in leadership roles.
Commissioner Anderson moved, seconded by Commissioner Bartel, that President Susie Smith be re-elected as President of the EWEB Board of Commissioners for 1999 and that Commissioner Mike Dyer be elected as Vice President of the EWEB Board of Commissioners for 1999. The motion was adopted unanimously, 5:0.
General Manager Randy Berggren stated that the Board would review its bylaws at a subsequent meeting.
APPOINTMENT OF COMMISSIONER REPRESENTATIVES AND LIAISONS
President Smith reviewed EWEB Board of Commissioners representatives and liaisons for 1998. Commissioners discussed responsibilities of the roles and proposed a list of appointments for 1999, as follows:
Commissioner Bartel moved, seconded by Vice President Dyer, that the proposed list of 1999 appointments of EWEB Board members as representatives and liaisons be approved. The motion was adopted unanimously, 5:0.
RATIFICATION OF BOARD CONSULTANTS
Risk Manager Debra Wright referred to her memorandum dated December 30, 1998, regarding consultants performing work for EWEB under a "professional services exemption" from Oregon Public Bidding Requirements distributed with the agenda of the meeting.
Commissioner Dyer asked if questions had been raised regarding the conservative nature of the tax advice provided by the previous Bond Counsel. Ms. Wright replied that a more significant concern regarding the previous Bond Counsel had been the location of the firm's offices and the difficulty of accessing its services.
Commissioner Bishop expressed appreciation to staff for providing information regarding its level of satisfaction survey with EWEB professional service providers. She asked if there were other EWEB contracts for legal services not appointed by Commissioners. Ms. Wright replied that legal services were provided to EWEB by the Eugene firm of Harrang Long Gary Rudnick and that the contract for those services was scheduled for evaluation in 1999. Commissioner Bishop said that she was concerned about the perception of conflict of interest which could develop from use of the firm.
Commissioner Dyer moved, seconded by Commissioner Bishop, that the EWEB Board of Commissioners ratify the following list of consultants for a professional services exemption from regulations of Oregon Public Bidding Requirements for 1999.
The motion was adopted unanimously, 5:0.
APPROVAL OF MINUTES
Commissioner Anderson requested that sentence 3 of paragraph 4 on page 6 of the minutes of the December 1, 1998, Work Session be changed, as follows:
Spettel suggested that the contract also had the potential of
becoming an example of a base power sale price which
the Bonneville Power Administration (BPA) needed to
stay match.
President Smith determined there was no objection to the request of Commissioner Anderson and stated that the minutes were amended as requested.
Commissioner Anderson requested that sentence 2 of paragraph 5 on page 10 of the minutes of the December 1, 1998, Regular Meeting be changed, as follows:
She said that his lack of attendance at the meeting indicated to
her that he did not consider the issue to be seriously in
the of much public interest.
President Smith determined there was no objection to the request of Commissioner Anderson and stated that the minutes were amended as requested.
Commissioner Anderson requested that sentence 3 of paragraph 5 on page 13 of the minutes of the December 1, 1998, Regular Meeting be changed, as follows:
She said she wanted all above-budget costs
large cost overruns to be presented to the
Board.
President Smith determined there was no objection to the request of Commissioner Anderson and stated that the minutes were amended as requested.
President Smith requested that sentence 1 of paragraph 2 on page 8 of the minutes of the December 1, 1998, Regular Meeting be changed, as follows:
Commissioner Bishop said she was surprised at the perspective of
the role of a Board member expressed in the press release
read by President Smith prepared by
Commissioner Osanka.
President Smith determined there was no objection to her request and stated that the minutes were amended as requested.
Vice President Dyer moved, seconded by Commissioner Bishop, that the minutes of the November 5, 1998 Public Hearing be approved. The motion was adopted, 3:0:2, with Commissioner Bartel and Vice President Dyer abstaining from voting.
Vice President Dyer moved, seconded by Commissioner Bishop, that the minutes of the December 1, 1998, Work Session and Regular Meeting be approved, as amended. The motion was adopted, 4:0:1, with Commissioner Bartel abstaining from voting.
CORRESPONDENCE
General Manager Berggren announced that there would be a demonstration of the use of a fuel cell at the home of Jeff Shields, General Manager for the Emerald People's Utility District , 380 West 38th Avenue, Eugene. He said the demonstration would take place on January 8, and that transportation would be provided from EWEB headquarters at 9:45 a.m.
Mr. Berggren discussed the annual EWEB Commissioners Retreat and determined there was consensus that the event would preferably take place at the Eugene Hilton Hotel on the first Friday/Saturday of February. He said that Bylaw review, staff function review, and various staff presentations were being considered for inclusion on the agenda of the retreat.
President Smith said she hoped some time during the retreat would be devoted to "group building" experiences and Board goal setting.
Commissioner Bartel said he would appreciate time at the retreat being devoted to presentations from staff about the purpose and condition of EWEB, as well as time for the Board to discuss priorities.
Mr. Berggren reminded Commissioners that the annual EWEB Legislative Luncheon would be held at noon on January 6. Commissioner Bishop stated that she would not be able to attend the luncheon.
Mr. Berggren said the agenda of the January 19 Board meeting would include a report from Legislative Representative Libby Henry regarding deregulation, consideration of the Wind Cost of Services Study, and discussion of criteria for a performance evaluation of the General Manager.
President Smith determined that the February 16 Board meeting would be a convenient time for the Annual Board President Report.
ITEMS FROM BOARD MEMBERS
Commissioner Bishop announced that she would be attending a conference entitled "Buying and Selling Electricity" in Seattle during the second week of January.
PUBLIC INPUT
President Smith determined that there was no one present wishing to address the Board.
BANK SIGNATURE CARDS
Assistant Treasurer Cathy Bloom referred to her memorandum dated December 31, 1998, regarding banking resolutions distributed with the agenda of the meeting. She noted that five deposit and signatory resolutions and a Wire Transfer Service Agreement were attached to the memorandum. She said re-approval of the documents was required whenever there was a change of Board Officers.
Vice President Dyer moved, seconded by Commissioner Bishop, that resolutions authorizing deposit of EWEB funds and designating signatories for withdrawals be approved for the following institutions:
and that James H. Origliosso or Catherine D. Bloom be authorized to enter into a Wire Transfer Service Agreement with any bank with which EWEB is authorized to do business. The motion was adopted unanimously, 5:0.
LEGISLATIVE SUPPORT
Jim Whitty, the State Lobbyist contracting with EWEB this year described his analysis of the 1999 Oregon State Legislature following the General Election. He noted that an increased number of Republicans would be members of the Assembly and an increased number of Democrats would be members of the Senate.
Mr. Whitty said that the Senate would contain a higher percentage of experienced and talented members and that the Assembly would have no members who had served more than two terms. He suggested that moderate members of the Republican Party in the Senate could have increased levels of influence over previous years.
Mr. Whitty reported that who would serve as Speaker of the Assembly continued to be contested and that membership on its committees had not yet been determined.
Mr. Whitty said he believed the focus of the interests of legislators during the 1999 session would be on "main street issues," government accountability, and morality concerns. He said the Republican majority did not appear to have a strong right-wing agenda. He suggested that important legislative proposals would concern about tax cuts for retirees, education, a gas tax to support transportation, salmon recovery, land use planning, and budget development without a surplus revenue.
Mr. Whitty said that his efforts on behalf of EWEB would concentrate on governing the salmon recovery efforts, hydroelectric de-commissioning, fish passage, water rights, telecommunications, pole attachment concerns, power de-regulation, Year 2000 issues, and concerns about the Public Employees Retirement System (PERS). He suggested that PERS-related legislation he would especially track would include repeal of HB3349, capping earning contributions, pooling by local governments, and separating from the system.
EWEB's Legislative Representative Libby Henry stated that she would lead a discussion of power deregulation issues at the next meeting of the Board on January 19. She said the politics of the issue and consideration of developing patterns would be included. She suggested that receiving legislative support for EWEB positions would be more difficult in 1999 than it was in the past and encouraged Commissioners to fully prepare for the meeting by studying background material to be provided.
Mr. Whitty asked that Commissioners act on a proposed resolution distributed with the agenda of the meeting concerning the participation of EWEB in the legislative process. Ms. Henry noted that the proposal was similar to resolutions adopted in the past and that it included a statement that EWEB supported legislation which:
The resolution also included a statement that EWEB would oppose legislation which:
Commissioner Dyer moved, seconded by Commissioner Bishop, that the Board adopt the proposed 1999 legislative process resolution. The motion was adopted unanimously, 5:0.
WATER SUPPLY PLAN
Water Division Director Dick Helgeson stated that Board adoption of the Water Supply Plan distributed with the agenda of the meeting would be the culmination of more than two years of effort by EWEB staff, Water Resources Working Group, Board of Commissioners, and members of the public. He reminded Commissioners of their previous discussions of the plan and its recommendations, and of the extensive public involvement process completed in connection with it.
Mr. Helgeson said that adoption of the plan would "set the direction" for development of the EWEB water system for the next 40 years. He noted, however, that the Board would continue to monitor and control its development through regular budgetary decisions, project approvals, and decisions regarding the issuing of bonds.
Mr. Helgeson said the process used to complete the plan had been positive and commended the project staff and Working Group.
Water Supply Plan Project Manager Brenda Sirois stated that the plan and recommendations were little changed from drafts previously reviewed by the Board. She said that an item had been added to the Near-Term Action Plan, as follows:
Ms. Sirois reported that the Near-, Medium-, and Long-Term Action Plans were summarized in an Action Plan Timeline found on page 47 of the Water Supply Plan. She noted that Board decision points were identified on the time line.
Commissioner Dyer said that his name was misspelled on page 1 of the Water Supply Plan.
Commissioner Anderson noted that a formatting error had placed a section title from page 23 on page 22 of the Water Supply Plan.
Commissioner Bartel said that the Water Supply Plan appeared to assume the development model of the Eugene-Springfield Area General Plan (Metro Plan). He asked how increasingly dense population growth was incorporated into the Water Supply Plan. Ms. Sirois replied that the high-, medium-, and low-growth scenarios accommodated a wide spectrum of growth potential in the area.
President Smith suggested that the Water Supply Plan was more sensitive to population growth than to increased density of population. Mr. Helgeson replied that higher population density would not significantly affect the capacity of the EWEB water system. He also said that residential users were not a major factor in determining future capacity increases needed.
Commissioner Bartel asked if evaluation of the deep aquifer would include study of the replacement of water used. Ms. Sirois said that the initial studies would include verification of water quantity and quality available in the deep aquifer at the proposed well field site. She said the capacity of the aquifer to replenish water used would be included in the study. She said hydro-geologic studies would provide data by which such questions for individual areas could be answered. She said she would provide details of the scope of the evaluation process to be followed.
Commissioner Bartel asked for a description of conservation programs included in the Near-Term Action Plan of the Water Supply Plan. Mr. Helgeson said the programs would be built on policies developed by the Board, would include guidelines for all users, and would contain "teeth" which would enable their enforcement.
Commissioner Bartel suggested that upgrading of water transmission lines would likely produce some disruption of services. He said he hoped EWEB would remain sensitive to the effects of such disruptions on business and residential customers.
Commissioner Anderson asked about the status of development of the Public Facilities Plan undertaken in the City of Eugene. Public Affairs Manager Marty Douglass stated that the committee formed to produce the plan was making slow progress . He said mapping and issue identification were currently being considered. He said the plan would include recently completed Eugene Residential and Commercial Land Studies.
Commissioner Bishop stated that she was impressed with the public involvement process followed in development of the Water Supply Plan and was "taken aback" by the public comments received late in the process. She said she believed staff responses to the late questions were excellent. Ms. Sirois stated the responses would be sent to those who had asked the questions.
President Smith stated that, as a participant in the Water Resources Working Group, she was pleased that there were no legitimate concerns raised by the public that had not been thoroughly analyzed in work sessions of the group. She said an example of her satisfaction was that she endorsed recommendations of the plan regarding further exploration of deep aquifer water sources, although she was initially hesitant to consider such an option.
Commissioner Bishop said she believed additional response to concerns about ozonization raised by members of the public should be provided. Ms. Sirois replied that the concern would be more fully addressed in the final version of the response to public comments.
President Smith said she believed there was a need for the Board to discuss options for financing transmission line construction. Mr. Helgeson replied that staff would develop strategy options for consideration by the Board.
Vice President Dyer moved, seconded by Commissioner Bishop, that the December 1998 Eugene Water & Electric Board Water Supply Plan be approved, subject to correction of spelling and formatting errors. The motion was adopted unanimously, 5:0.
ACCUMULATED ASSETS
Treasurer Jim Origliosso stated that, based on discussion at the Board Work Session held earlier, he recommended that the Board
Commissioner Dyer asked how the benefits of the proposed Medical Benefit Trust Fund would be paid. Mr. Origliosso replied that the benefits would be included as an item of the annual budget. Mr. Berggren said the benefits would also be carried as an EWEB unfunded liability.
Commissioner Bartel said that he was made uncomfortable by the way the trust fund and PERS issues appeared to place the EWEB Board of Commissioners and EWEB employees on opposite sides of compensation issues.
Commissioner Dyer said that he would prefer to allocate the entire accumulated assets at one time, when all ramifications of each element were understood.
President Smith said that there was time urgency in making allocations to the REACH program and Referral Data System and urged that they be given special consideration.
Commissioner Dyer moved, seconded by Commissioner Bishop, that Board action taken in June 1998 regarding establishing a Post-retirement Medical Benefit Trust be rescinded. The motion was adopted unanimously, 5:0.
Commissioner Dyer moved, seconded by Commissioner Bishop, that appropriate action be taken to allocate $50,000 as a Board Donation to the REACH Utility Assistance Program and $10,000 as a Board Donation to the Referral Data System described in the proposed Universal Service Program, to be refunded from Accumulated Assets. The motion was adopted unanimously, 5:0.
Commissioner Bishop stated that she was concerned that the phrase "elements of a contract" when used in connection with PERS Benefits to EWEB employees and that it could be misleading and preferred that alternative language be chosen.
The meeting adjourned at 9:35 p.m.