Board Members present: Susie Smith, Sandra Bishop, Dorothy Anderson, and Peter Bartel. Vice President Dyer was excused.
Others present: Randy Berggren, Ken Beeson, Cathy Bloom, Tom Buckhouse, Chuck Dalton, Marty Douglass, Dick Helgeson, Garry Kunkel, Roseanna McArthur, Kris Middlewood, John Mitchell, Jim Origliosso, Dick Varner, Debra Wright, and Krista Hince of the EWEB staff; Norton Cabal, John Van Landingham, and other representatives of the Housing Policy Board; and Daniel Lindstrom, Minutes Recorder.
President Smith called the Special Meeting of the Eugene Water & Electric Board (EWEB) to order at 7:30 p.m. She determined that there were no requests to change the agenda.
ITEMS FROM BOARD MEMBERS
Commissioner Anderson stated that she had attended a presentation by Thurston Elementary School. She explained that EWEB had help support a fourth and fifth grade study unit about the McKenzie River watershed in the school through an Educational Grant and from funds formerly given as Contributions in Lieu of Taxes (CILT). She described the project and science fair which had resulted from the study unit. She displayed a plaque expressing appreciation presented to EWEB.
Commissioner Bartel complimented the staff on the implementation of a recycling program reported in a recent edition of The Intercom.
APPROVAL OF MINUTES
Commissioner Anderson requested that Sentence 2 of paragraph 4 on page 1 of the minutes of the June 1 Regular Board Meeting be changed, as follows:
She said the information provided contained less detail than what
she had available previously
received.
President Smith determined there was no objection to the request of Commissioner Anderson and stated that the minutes were amended.
Commissioner Anderson requested that sentence 1 of paragraph 5 on page 1 of the minutes of the June 1 Regular Board Meeting be changed, as follows:
Commissioner Anderson stated that she had become convinced
since her conversation with the representatives of
by material she had received from the
Northwest Energy Coalition that full information about the issues
would not be available until August, at the earliest.
President Smith determined there was no objection to the request of Commissioner Anderson and stated that the minutes were amended.
President Smith requested that sentence 2 of paragraph 5 on page 1 of the minutes of the June 1 Regular Board meeting be changed, as follows:
She said she had come to favor a suggestion that, in light of
state and federal legislative attempts to preclude removal of the
Columbia and Snake River dams, the Board should take a
position of asking that no legislation be enacted at this
time adopt a resolution asking that the option
to breach the dams remain on the table, along with all other options
under consideration.
President Smith determined there was no objection to her request and stated that the minutes were amended.
Commissioner Anderson requested that paragraph 5 on page 2 of the minutes of the June 1 Regular Board meeting be changed, as follows:
Commissioner Bishop reported that the State Legislature had
proposed to formed a new
agency, the Oregon Watershed Enhancement Board, which would be
responsible for dispensing lottery funds to voluntary efforts related
to parks and salmon restoration.
President Smith determined there was no objection to the request of Commissioner Anderson and stated that the minutes were amended.
President Smith requested that paragraph 2 on page 2 of the minutes of the June 1 Regular Board Meeting be changed, as follows:
Commissioner Dyer said he could not support breaching dams as long as EWEB operated dams, but that he believed it was acceptable to study the issues involved and therefore would not mind the option of a resolution to study all the options.
President Smith determined there was no objection to her request and stated that the minutes were amended.
President Smith requested that sentence 2 of paragraph 3 on page 2 of the minutes of the June 1 Regular Board Meeting be changed, as follows:
He suggested that staff make a short presentation about
options related to the second concern return to
the Board with a draft resolution at the June 15 Board
meeting.
President Smith determined there was no objection to her request and stated that the minutes were amended.
President Smith requested that paragraph 4 on page 2 of the minutes of the June 1 Regular Board Meeting be changed, as follows:
President Smith determined there was consensus agreeing with the
analysis and suggestion approach
of Mr. Berggren.
President Smith determined there was no objection to her request and stated that the minutes were amended.
Commissioner Bishop requested that sentence 1 of paragraph 1 on page 2 of the minutes of the June 1 Regular Board Meeting be changed, as follows:
Commissioner Bishop said that she did not believe consideration of the issue was profitable use of Board agenda time because EWEB dam re-licensing issues were not yet settled.
President Smith determined there was no objection to the request of Commissioner Bishop and stated that the minutes were amended.
Commissioner Bishop requested that sentence 1 of paragraph 1 on page 6 of the minutes of the June 1 Regular Meeting be changed, as follows:
Commissioner Bishop said she did not want to add a large
commitment of Board agenda members'
time to the consideration of contracts.
President Smith determined there was no objection to the request of Commissioner Bishop and stated that the minutes were amended.
President Smith requested that paragraph 6 on page 5 of the minutes of the June 1 Regular Meeting be changed, as follows:
After expressing agreement that additional Board accountability for contracting was warranted, Commissioner Anderson said she was concerned that the work of the Board could become "bogged down" having to approve personal services contracts.
President Smith determined there was no objection to her request and stated that the minutes were amended.
Commissioner Bishop requested that sentence 2 of paragraph 8 on page 6 of the minutes of the June 1 Regular Meeting be changed, as follows:
She suggested that concern for Board
accountability was in place and that she believed
could have arisen in over-reaction to
Board-Staff the problem was a
communication issues
breakdown which had surfaced
in during the remodeling
of the Midgley's Building. She also suggested that the
problem might have led to some over-reaction on the part of the
Board.
President Smith determined there was no objection to the request of Commissioner Bishop and stated the minutes were amended.
President Smith requested that paragraph 3 on page 6 of the minutes of the June 1 Regular Meeting be changed, as follows:
President Smith said she believed competitive bids for over $5,000 identified in Purchasing Rule 020.4 should be required to be in writing and that for bids of $2,500 to $5,000 phone quotes be required.
President Smith determined there was no objection to her request and stated that the minutes were amended.
Commissioner Anderson moved, seconded by Commissioner Bishop, that the minutes of the June 1, 1999, Regular Board Meeting be approved, as amended. The motion was adopted, 3:0:1, with Commissioner Bartel abstaining from voting.
CORRESPONDENCE
General Manager Randy Berggren reminded Commissioners that the June 18-19 Planning Session of the Board would be held at the Hilton Hotel. He requested that menu choice lists be returned.
Mr. Berggren reminded Commissioners of the "Honoring Our River" incentive for area teachers to encourage students to submit literary works about the relationship of people and the Willamette River watershed for an anthology of works to be published by the Willamette Restoration Initiative. He said that there were 250 entries, 150 from the Bethel, Eugene, and Springfield school districts; and that 20 of the 40 published were from the local area. He said he believed the project was successful.
Mr. Berggren referred to a memorandum from Public Affairs Manager Marty Douglass regarding a request to have electric and water related charges from the Fanconi Anemia Research Fund. He said the request was to support a worthy cause and that he believed it should be evaluated by the Board. He said he did not believe the request fit the mission of EWEB and recommended that it not be approved.
President Smith said that she agreed with the opinion of Mr. Berggren. Commissioner Anderson added that to approve the request would make it difficult to reject any number of similar requests from other worthy agencies.
Mr. Berggren stated that he would inform the Fanconi Research Fund that the Board would not likely approve the request.
Mr. Berggren referred to a draft resolution on Snake River dams attached to a memorandum from Electric Division Director Garry Kunkel distributed with the agenda of the meeting. He said it was created to express the apparent consensus regarding the dams reached by the Board at its June 1 meeting.
Commissioner Bartel read the resolution, as follows:
"That the Eugene Water & Electric Board of Commissioners urges that all current alternatives being studied regarding the recovery of salmon runs in the Columbia-Snake River systems, including the partial removal of the four lower Snake River dams, be completed and given full consideration prior to final decisions on the best means to recover these fish species."
Commissioner Bartel moved, seconded by Commissioner Anderson that the resolution be adopted. The motion was adopted unanimously, 4:0.
Mr. Berggren referred to a memorandum and attached material from Facilities Services Director Tom Buckhouse regarding a EWEB Headquarters Site Master Plan review. He said Commissioners would continue to be kept informed of progress regarding the review.
Mr. Berggren referred to a memorandum from Environmental Manager Laurie Power regarding the EWEB opposition to 1999 Oregon Legislative Session House Bill 3456, which established the possibility of independent cleanup of contaminated sites. He said he believed the opposition was in keeping with EWEB legislative principles and was correct.
Commissioner Bishop stated that an article in the newsletter of the Associated Oregon Industries had erroneously reported that EWEB was the only agency opposed to the bill. She said she would provide copies of the article to Commissioners.
Mr. Berggren asked if Commissioners wished to discuss the information regarding the appraisal of the Midgley's Building distributed with the agenda of the meeting.
Commissioner Bartel said he believed the information needed discussion by the Board.
Mr. Berggren asked if it would be appropriate for discussion of the information to be held in meetings of the Headquarters Site Master Plan review subcommittee. Commissioner Bishop replied that she believed consideration of issues related to the appraisal of the Midgley's Building should be discussed by the full Board, and not considered in a subcommittee.
Mr. Berggren asked if there was an urgency for the Board to consider the information. Commissioner Bartel replied that he believed the information needed to be considered in the context of the entire Headquarters site.
Mr. Berggren suggested that staff prepare a report recognizing the "nesting" of the Midgley's Building appraisal information in global issues related to the Headquarters site for consideration by the Board.
President Smith said she did not believe the issue had current urgency.
Commissioner Bartel asked if matters related to potential renters of the Midgley's Building gave the issue any special urgency. Mr. Buckhouse reported that the business of potential renters of the facility involved rebuilding of computers and that such operations were permitted by current zoning standards.
President Smith suggested that details of the issues being considered be reviewed by the Headquarters Site Master Plan review subcommittee to develop a recommendation for action by the Board.
Commissioner Bishop said she believed the Board was too small to establish subcommittees. She suggested that if an issue was not adequately significant for Board consideration, it should be resolved by staff.
Commissioner Anderson said she did not fully understand the issue being discussed. President Smith explained that the Metro Plan and City of Eugene zoning maps did not allow commercial uses of the Midgley's Building which could be expected to provide the most advantageous rents. Mr. Buckhouse added that the offer currently being considered included rents which were higher than could reasonably be anticipated from non-allowed uses.
Commissioner Bartel said he preferred to have the proposed rental/lease agreement finalized as soon as possible.
President Smith said she believed that consideration of the Headquarters Site Mater Plan should continue and that recommendations to the Board regarding it should be prepared for the earliest appropriate meeting.
Mr. Berggren reviewed topics scheduled to be considered on the agenda of July meetings of the Board.
PUBLIC INPUT
President Smith determined there was no one present wishing to address the Board.
HOUSING POLICY BOARD REQUEST
Customer Relations Manager Charles Dalton referred to his memorandum dated May 3 distributed with the agenda of the meeting. He explained that the Housing Policy Board representing the cities of Eugene and Springfield, Lane County, and the Housing Authority and Community Services Agency (HACSA) was making its 1999 request for water System Development Charge (SDC) grant funding for affordable housing projects. He said the request for $100,000 involved no changes in policy, the intergovernmental agreement establishing the grants, or the legal status of agencies involved.
Mr. Dalton explained that the requests were "straight forward" and mirrored those approved for 1998. He reviewed projects, sponsors, and SDC grants proposed for funding, as follows:
Commissioner Bartel asked for a description of the "snafu" of the Sheldon Village Phase I project. Housing Policy Board Chair John Van Landingham explained that the application for State tax credits for the project had been administratively vetoed on the basis of the building's design, that the project would be resubmitted, and that he was confident it would receive the credits.
Commissioner Bartel asked what would happen if a project for which funds had been approved was not able to be begun. Water & Steam Divisions Director Dick Helgeson replied that funds allocated for SDC grants were not part of the annual budget, but that the Board could make funds available in the current year for a project to begin in the next.
Treasurer Jim Origliosso said that funds allocated for SDC grants were required to be identified as surplus Water Division operating funds placed in the SDC Fund as payment for the charges accrued by the identified projects.
Mr. Van Landingham said the Housing Policy Board did not anticipate not being able to spend the $100,000 requested.
Commissioner Bartel moved, seconded by Commissioner Anderson, that the Housing Policy Board request for water System Development Charge grant funding for 1999 affordable housing projects be approved. The motion was adopted unanimously, 4:0.
WIND POWER OPTIONS FOR GENERAL SERVICE CUSTOMERS
Energy Management Services Manager Mat Northway referred to his memorandum dated June 8 regarding new WindPower options for General Service customers distributed with the agenda of the meeting. He reviewed calculations of 25 percent, 50 percent, and 100 percent options for General Service customer WindPower power charge rates attached to the memorandum. He pointed out that approval of the options would require a Public Hearing before the Board and that such a hearing was scheduled as part of its July 6 Regular Meeting.
President Smith determined there was consensus to move forward with the Public Hearing and consideration of the proposed rate options.
TELECOMMUNICATIONS PROJECT STATUS
Telecommunications Project Manager Ken Beeson reviewed the status of the construction and implementation of Phase I of the EWEB Telecommunications Project. He described permit and outside plant construction completed in preparation for the work of contractor MFS Network Technologies. He said that bids received for projected work indicated there would be unanticipated savings and that the project would be finished within the time line and budget established.
Mr. Beeson reported that a business plan for the Telecommunications Project was being developed, would be finalized at an extended staff meeting in July, and would be reviewed by the Board in a Work Session scheduled for August.
Mr. Beeson said fiber lease cost schedules were being developed in consultation with public agencies and that discussions were being held with content providers. He said negotiations about the enabling Memorandum of Understanding would be required to enable EWEB to change the way excess fiber optic capacity would be prepared for leasing by content providers.
Mr. Beeson reported that a "ground breaking" event for the project was tentatively scheduled for August 24.
Mr. Beeson said that recommendations regarding details of the residential test section of the project would be ready for presentation by fall.
Commissioner Anderson asked if Mr. Beeson was aware that U.S. West was currently offering to provide high speed Internet connection to Eugene residents for $50 a month. Mr. Beeson said that such services would be more limited than access able to be provided through Phase II of the EWEB project.
BUDGET MANAGEMENT POLICY
Mr. Origliosso reviewed the existing cost management policy of the EWEB Financial Plan and said discussions with Commissioners had indicated it was considered to be overly vague, contain undefined terms, and lack formal approval by the Board. He presented an alternate wording for the policy, as follows:
EWEB will take cost management actions to maintain expenditures within an authorized budget that reflects costs that are comparable with similarly chartered organizations.
Mr. Origliosso said the proposed policy wording was more pragmatic, clearly tied to the authorized budget, and contained terms more easily interpreted. He said Board approval of the policy would be requested in July.
Commissioner Bishop suggested that the word "organizations" be replaced with the word "utilities" in the proposed policy.
Mr. Berggren said the suggestion added the concept of "bench marking" to the policy.
Mr. Origliosso said there was no hidden meaning intended in the terms used in the proposal policy. He explained that EWEB regularly used 14 utilities which were mostly publically owned in the Northwest for comparison purposes.
Mr. Origliosso presented Budget Amendment Criteria developed by staff in response to previously held Board discussions, as follows:
Budget amendments will be presented to the Board when projections indicated any of the following may be exceeded:
Expenditures for any Electric Utility capital project with an estimated cost of $200,000or more, or Water Utility capital project with an estimated cost of $100,000, which are projected to be:
Any new major Electric Utility capital project of more than $200,000 or Water Utility project of more than $100,000 not in the authorized budget.
President Smith asked why exceeding employee levels in individual utility budgets had not been proposed as a criteria. Mr. Origliosso replied that the divisions measured employee equivalency differently.
Mr. Berggren stated that, with the Board's approval, the proposed criteria would be implemented on July 1.
President Smith said that the proposed criteria were responsive to her concerns.
Commissioner Bartel said that he agreed with President Smith.
Commissioner Bartel asked why both 20 percent and specific dollar amount were proposed for capital project criteria. President Smith pointed out that doing so ensured a lower threshold for requesting a budget amendment. Mr. Origliosso pointed out that doing so provided an absolute and relative threshold for each project.
Mr. Origliosso presented a statement of Budget Amendment Exclusions developed by staff in response to previously held Board discussions, as follows:
Costs that change directly with product sales
Financial Services Manager Dick Varner suggested that the cost of natural gas used in the generation of steam be added to the list of exclusions. He said any changes in the cost were "passed through" to customers.
Mr. Origliosso presented a format for Budget Amendment proposals developed by staff, as follows:
President Smith requested that "strikingly large" Budget Amendment proposals be accompanied by a description of all funding source options.
Commissioner Bartel moved, seconded by Commissioner Anderson, that Financial Plan Budget Amendment Criteria, Budget Amendment Exclusions, and Budget Amendment Format proposals be approved. The motion was adopted unanimously, 4:0.
CONTRACT REVIEW
Mr. Buckhouse referred to a revision of Section 020 of the EWEB Purchasing and Contracting Rules attached to his memorandum dated June 10 distributed with the agenda of the meeting. He pointed out that sentence 3 of paragraph 4 of subsection 020.5 should be changed, as follows:
For small contracts estimated to cost less than
$100,000 $10,000, a
contract may be negotiated without obtaining Competitive Bids.
Mr. Buckhouse pointed out that paragraph 5 of subsection 020.5 of the proposed Purchasing and Contracting Rules should be changed, as follows:
The Board shall approve award of all bids of $100,000 or greater
for the purchase of equipment, material, and
supplies construction of
improvements.
Mr. Buckhouse pointed out that sentence 1 of paragraph 6 of subsection 020.5 of the proposed Purchasing and Contracting Rules should be changed, as follows:
The Board shall approve all change orders to Board awarded contracts which cause the contract to exceed 120 percent of the original awarded amount.
Commissioner Anderson moved, seconded by Commissioner Bartel, that the proposed changes to section 020 of EWEB Purchasing and Contracting Rules, as amended, be approved. The motion was adopted unanimously, 4:0.
Commissioner Bishop said that she believed the rules should be carefully reviewed in six months. Mr. Buckhouse replied that extensive review and revision of the rules would be required after the 1999 Session of the Oregon Legislature completed enactment of required other changes.
CONSENT CALENDAR
Director of Corporate Services Roseanna McArthur referred to her memorandum dated June7 which contained background and a recommendation regarding inclusion of a Consent Calendar item on agenda of meetings of the Board.
President Smith asked whether the General Manager should review and correct meeting minutes, if their approval was to be included on the Consent Calendar, as proposed. Commissioner Bishop replied that she did not believe the General Manager should perform such a function. President Smith said she believed advance review and correction of minutes was a normal staff function.
Ms. McArthur suggested that "Information Items" which were presented in print could also be included in a Consent Calendar.
Commissioner Bishop suggested that the agenda description of the Consent Calendar clearly indicate that items could be removed for later consideration by the request of a single Commissioner.
Commissioner Bartel moved, seconded by Commissioner Anderson, that the practice of including a Consent Calendar item on agenda of Board meetings be approved. The motion was adopted unanimously, 4:0.
Ms. McArthur stated that a Consent Calendar would be included on agenda of meetings beginning in July.
OTHER MATTERS
Commissioner Bishop said she appreciated the joint meeting of the Board with the Eugene City Council held on June 9.
Mr. Berggren said he had heard both Commissioners and Councilors express interest in continuing the practice of periodic joint meetings. He said no schedule for doing so had been established, but that they would likely be held one or two times a year.
Commissioner Bishop suggested that Councilors might appreciate being invited to participate in tours of EWEB facilities scheduled for Commissioners.
President Smith said she especially appreciated the work of staff in preparation for the joint meeting.
The meeting adjourned at 9:30 p.m.
_____________________________________ ______________________________________
Assistant Secretary President