Board Members present: Susie Smith, Mike Dyer, Sandra Bishop, and Peter Bartel. Commissioner Dorothy Anderson was excused
Others present: Randy Berggren, Dean Ahlsten, Cathy Bloom, Deb Brewer, Sally Brown, Tom Buckhouse, Marty Douglass, Cathy Hamilton, Dick Helgeson, Garry Kunkel, Jim Origliosso, Scott Spettel, Dick Varner, John Yanov, and Lamonte Smith of the EWEB staff; members of the public; and Daniel Lindstrom, Minutes Recorder.
President Smith called the Regular Board Meeting of the Eugene Water & Electric Board (EWEB) to order at 7:35 p.m. She determined there were no requests for changes to the agenda.
CONSENT CALENDAR
President Smith noted that items presented for approval on the Consent Calendar included the following:
Commissioner Dyer moved, seconded by Commissioner Bartel, that the September 7, 1999, Consent Calendar be approved. The motion was approved unanimously, 4:0.
ITEMS FROM BOARD MEMBERS
Commissioner Bartel stated that his concern about Year 2000 project cost over-runs was not met by the memorandum from Year 2000 Project Manager Kevin Fahey dated August 16 distributed with the agenda of the meeting. General Manager Randy Berggren replied that the memorandum was not intended to speak to the concerns of Commissioner Bartel, but was part of the regular reports to Commissioners providing an update on the project. Treasurer Jim Origliosso said that he would prepare a full report regarding the concern.
Commissioner Bishop said she was concerned that recent publicity regarding the Energy Rebate Program had been published without including an EWEB logo to identify sponsorship. Public Affairs Manager Marty Douglass replied that he would investigate the situation and make corrections.
Commissioner Bishop expressed appreciation to staff for notes and updating reports regarding EWEB affairs during her absence.
CORRESPONDENCE
General Manager Randy Berggren reported that EWEB would sponsor a water refreshment and information booth at the Eugene Celebration.
Mr. Berggren referred to the August 16 memorandum from Mr. Fahey providing a Year 2000 Project update distributed with the agenda of the meeting.
Mr. Berggren reported that it had been decided that there was no economic benefit to EWEB to participate in Phase II of the Klamath Falls generation project and that its sponsors had been notified that EWEB would not participate in it.
Mr. Berggren reported that EWEB would not provide a Loaned Executive for the 1999 United Way Campaign. He said appropriate staff would not be available and he had notified United Way that EWEB would participate in the campaign of 2000.
Mr. Berggren reviewed the agenda of the September 21 Board Meeting.
President Smith requested that she be excused and left the meeting at 7:35 p.m. Commissioner Dyer assumed the chair.
PUBLIC INPUT
Vice President Dyer determined that there was no one present wishing to address the Board.
HYUNDAI CONTRACT UPDATE
Facilities Director Tom Buckhouse referred to his memorandum dated September 2, regarding pending rate contract negotiations with Hyundai Semiconductor of America distributed with the agenda of the meeting. He noted that a letter from Mr. Berggren to Hyundai representative John Lively dated August 24, and copies of the current Power Sales Agreement, and Water Sales Agreement were also distributed with the agenda of the meeting.
Mr. Buckhouse stated that Hyundai had been informed of EWEB's desire to enter into discussions to modify electric and water rates. He said when the contract with Hyundai was established, assumptions were made which needed to be clarified. He explained that full operation of the plant for a year gave adequate basis for judgement regarding its requirements and development of the water supply plan identified incremental increases which would affect the rates to be charged. He also explained that power supply costs had increased and that a cost of services analysis would be completed later in the year, which was anticipated to also suggest rate increases.
Mr. Buckhouse said that EWEB would be represented in the negotiations by himself, Water & Steam Division Director Dick Helgeson, Power Management & Planning Manager Scott Spettel, and Fiscal Services Supervisor Dick Varner. He said the Board would be kept fully informed of the negotiations.
Commissioner Bishop asked if the water usage of Hyundai was higher or lower than had been anticipated. Mr. Buckhouse replied that both water and power usages were under initial estimates. Senior Rates/Financial Analyst John Yanov stated that Hyundai's electric power load averaged between 92 and 95 percent of what was anticipated and that its water demand averaged approximately 50 percent of the anticipated needs.
Commissioner Bishop asked when it was anticipated that the negotiations with Hyundai would be completed. Mr. Buckhouse replied that the negotiations would likely be completed before the beginning of 2000.
Commissioner Bishop asked if EWEB had other supply contracts. Mr. Buckhouse replied that power was supplied to Weyerhaeuser Corporation, but that it would not be affected by negotiations with Hyundai.
Commissioner Bishop stated that she appreciated the format used in the staff memorandum.
WATER SYSTEMS DEVELOPMENT CHARGE
Mr. Yanov referred to his memorandum regarding Public Process for Water System Development Charges (SDC) dated September 1 distributed with the agenda of the meeting. He distributed copies of a document entitled "2000 Water System Development Charge Proposal." He stated that information in the document was required to be available 30 days before a public hearing on proposed SDC changes. He reviewed the outreach plan for distribution of information about the proposed changes contained in his memorandum.
Mr. Yanov reported that he had been unsuccessful in recruiting members of the City of Eugene Rates Advisory Committee to evaluate EWEB proposals. He explained that his personal contact with all of its members had resulted in expressions of appreciation for the invitation to serve, learning that the schedule of each was unable to accommodate another meeting, and that some were interested in follow-up information about the proposed changes.
WATER BOND AUTHORIZATION
Mr. Yanov reviewed the background of the request for Board approval of using Uniform Revenue Bond Act methodology for authorizing the use of bonds to finance Water Supply Plan capital facilities included in his memorandum dated September 1 regarding the bonds distributed with the agenda of the meeting. He noted that a resolution authorizing the issuance and sale of $36,000,000 in bonds was attached to his memorandum. He said, if the resolution was approved by the Board, a similar one would be presented to the Eugene City Council on September 13.
Commissioner Bartel moved, seconded by Commissioner Bishop, that approval be given to the resolution entitled "A Resolution Requesting the City of Eugene to Authorize the Issuance and Sale of Revenue Bonds in an Aggregate Principal Amount Not to Exceed $36,000,000 to Finance Projects Under Eugene Water & Electric Board's Water System Capital Plan; Providing for Certain Details of the Bond Authorization; Authorizing and Approving the Publication of Notice of Revenue Bond Authorization; and Authorizing Certain Other Acts in Connection With the Bonds."
Commissioner Bishop asked what the terms "SDC Eligible" and "Remainder" meant as used in the chart entitled "10 Year Water Capital Plan - Summary View" attached to the memorandum. Mr. Yanov replied that a project was eligible for SDC funding only if it was an improvement to an existing system and that a project needed to have completed its life-expectancy by 2010.
Vice President Dyer asked if it was possible for SDC to pay for any projects planned to be funded by the bond issue. Mr. Varner replied that the SDC Fund would pay debt service on the bonds and would prevent rate impacts.
The motion to authorize bonds was approved unanimously, 3:0.
The meeting adjourned at 8:10 p.m.
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Assistant Secretary President