Board Members present: Mike Dyer, Sandra Bishop, Dorothy Anderson, and Peter Bartel. President Susie Smith was absent and excused.
Others present: Randy Berggren, Ken Beeson, Ed Case, Terry Bequette, Tom Buckhouse, Jon Cunningham, Marty Douglass, Dick Helgeson, Eric Hiaasen, Garry Kunkel, Jim Maloney, Roseanna McArthur, Janet McClennen, Jean Meyers, Kris Middlewood, Mat Northway, Jim Origliosso, Laurie Power, Scott Spettel, Dick Varner, Debra Wright, John Yanov, and Krista Hince of the EWEB staff; various EWEB employees and members of the public; and Daniel Lindstrom, Minutes Recorder.
Vice President Dyer called the Regular Meeting of the Eugene Water & Electric Board (EWEB) to order at 7:45 p.m. He noted that the agenda was lengthy and determined there was consensus to consider the item related to Parking Fees following Public Input.
CONSENT CALENDAR
Vice President Dyer noted that items presented for approval on the Consent Calendar included the following:
Commissioner Bishop requested that item five regarding Landslide Technology be removed from the Consent Calendar.
Commissioner Bishop requested that sentence 2 of paragraph 6 on page 4 of the minutes of the October 19 Special Meeting be changed, as follows:
She asked what impacts the project could have on access to businesses property owners.
Vice President Dyer determined there was no objection to the request of Commissioner Bishop and stated that the minutes were amended.
Commissioner Bishop requested that sentence 3 of paragraph 1 on page 6 of the minutes of the October 19 Special Meeting be changed, as follows:
She said she did not support departure incentives and was inclined to seek reductions in the rate of funding capital reserves before reducing as an alternative to lay offs of staff.
Vice President Dyer determined there was no objection to the request of Commissioner Bishop and stated that the minutes were amended.
Commissioner Bishop requested that paragraph 2 on page 6 of the minutes of the October 19 Special Meeting be changed, as follows:
Commissioner Bishop said she believed the plan was an indication of a "subtle shift" at EWEB to resulting in instilling a sense of employee uncertainty that could have been avoided. She said she believed financial risks with reserve levels were preferable to reducing staff. She said that she did not support lay offs at this time and that s. She believed the issues involved such as these should be brought before the Board and more formal action be taken before staff takes action.
Vice President Dyer determined there was no objection to the request of Commissioner Dyer and stated that the minutes were amended.
Commissioner Bishop requested that paragraph 6 on page 6 of the minutes of the October 19 Special Meeting be changed, as follows:
Commissioner Bishop said she was not asking for Board action regarding her concerns, but had prepared her memorandum as a statement of her reflections on disagreement with staff reductions at this time.
Vice President Dyer determined there was no objection to the request of Commissioner Dyer and stated that the minutes were amended.
Commissioner Bartel moved, seconded by Commissioner Bishop that the Consent Calendar for November 2, 1999, be approved, with the Minutes of the October 19 Special Meeting amended, and without the Personal Services Contract for Landslide Technology. The motion was adopted unanimously, 4:0.
ITEMS FROM BOARD MEMBERS
Commissioner Bishop said she did not like hearing on National Public Radio that there was toxic runoff into the Willamette River from the site of the coal gasification plant formerly operated by EWEB. She asked if it would be possible to provide more accurate information to news media.
Public Affairs Manager Marty Douglass stated that the body of the local television and The Register-Guard report of the same information was more accurate. He said he would investigate requesting a correction in the national story if negative public reaction was received.
CORRESPONDENCE
General Manager Randy Berggren reported that 16 proposals had been received from employees in the Early Departure Incentive program. He said assessment of the proposals had not yet been made and that a full report would be made to the Board.
Mr. Berggren reported that Power Management and Planning Manager Scott Spettel had discussed a co-generation power production project with the city of Hermiston and the leaders of the Umatilla Indian tribe. He said the discussions would continue.
Mr. Berggren proposed that an additional Board Work Session on the 2000 Budget and Work Plans be scheduled for November 23. He said details of the session would be finalized at the next meeting.
Mr. Berggren reported that a copy of a letter from the Federal Energy Regulatory Commission (FERC) had been received which appeared to approve EWEB's request to serve as outside consultant in forthcoming procedures related to Endangered Species Act listings.
Mr. Berggren reported that many positive comments had been received regarding a Willamette River Anthology recently published by the Willamette Restoration Initiative and distributed to Commissioners.
Mr. Berggren reviewed the agenda of the November 16 Work Session and Special Board Meeting.
PUBLIC INPUT
Vice President Dyer determined that there was no one present wishing to address the Board.
PARKING FEES
Mr. Berggren reminded Commissioners of the previous support given by the Board to efforts included in the Eugene-Springfield Metropolitan Area Transportation Plan (TransPlan) to reduce the use of private automobiles. He said the concern had been included in the 2000 Budget through proposal of an employee parking fee. He said concern had been expressed at the October 19 Work Session that it would be difficult for employees to differentiate between incorporation of the fee as implementation of the intent of TransPlan and as an additional revenue strategy for the utility.
Mr. Berggren reported that subsequent discussions with individual Commissioners had led to his deciding to withdraw the Budget proposal and direct that the possibility of a parking fee be included in discussions regarding the EWEB Headquarters master site plan.
Commissioner Anderson said she supported the decision of Mr. Berggren.
Vice President Dyer said he agreed that creating a parking fee should be discussed as part of consideration of the entire parking issue.
Commissioner Bishop said she did not believe a parking fee should have been included in the Budget because EWEB was not a normal business, in that its employees did not all arrive and depart at the same time. She said public transportation could not adequately meet the needs of EWEB employees. She said she would like an assessment of current work hour practices of employees before deciding on any parking fee proposal.
Commissioner Bartel said his involvement with transportation planning in the region had convinced him that EWEB needed to support alternative modes of transportation. He said imposing a parking fee would not be a punitive measure, but a way to achieve a community value by reducing the use of private automobiles.
Vice President Dyer determined there was consensus to support Mr. Berggren's intention to remove the proposed parking fee from the 2000 Budget and consider it as an element of the Headquarters Master Site Plan review.
Commissioner Bishop said she would like to join the committee conducting the Headquarters Master Site Plan review. Mr. Berggren replied that he would investigate such a possibility, but pointed out that incorporating a third Commissioner would create issues related to a quorum of Commissioners being present and requirements set on such gatherings in Oregon Public Meeting statutes.
WATER SYSTEMS DEVELOPMENT CHARGE
Senior Rates/Financial Analyst John Yanov referred to a document entitled "2000 Water System Development Charge Proposal" distributed with the agenda of the meeting. He reminded Commissioners that a preliminary briefing on the Water Systems Development Charge (SDC) had taken place on July 20, a Public Forum held on September 16, and a Public Hearing on the proposal on October 5.
Mr. Yanov reviewed differences between the SDC when they were first implemented in 1997 and the current proposal, as follows:
Mr. Yanov explained that a Public Hearing regarding the proposed SDC would be part of the current meeting and that he hoped the Board would act on staff recommendations to adopt the changes. He said if the changes were adopted, they would become effective January 3.
Mr. Yanov referred to his memorandum dated October 28 distributed with the agenda of the meeting and noted that the SDC proposal had changed since it was considered on October 5. He said, taking into account public testimony and discussion by the Board, staff had removed the Deep Wells project from the SDC calculation. He reviewed reasons for the change, as follows:
Mr. Yanov reviewed data included in documents entitled "System Development Charge Comparison - Current vs Proposed" and "1998 system Development Charge Survey" distributed at the beginning of his presentation.
Mr. Yanov referred to a memorandum from Water & Steam Divisions Director Dick Helgeson regarding revisions to Water SDC policy distributed with the agenda of the meeting. He reviewed proposed policy changes and staff recommendations for their adoption included in the memorandum.
Commissioner Bishop stated that she appreciated removal of the Deep Wells project from the SDC calculation. She suggested that the Board should have extensive discussion of it before it was approved.
Vice President Dyer said the he also appreciated removal of the project from the SDC calculation and asked if doing so had been discussed with the Director of the Lane County Home Builders Association. Mr. Yanov replied that he had held such a discussion and received assurance that the association would support the SDC level being proposed.
PUBLIC HEARING ON SERVICE DEVELOPMENT CHARGES
Vice President Dyer opened the Public Hearing on the 2000 Water System Development Charge Proposal. He determined there was no one present wishing to present testimony. He closed the public hearing.
Commissioner Bartel moved, seconded by Commissioner Anderson, that the Board approve the 2000 Water System Development Charge Proposal and changes proposed to EWEB's policy and procedures pertaining to the assessment and collection of Water System Development Charges.
Vice President Dyer referred to the memorandum of Mr. Yanov distributed with the agenda of the meeting and said he did not agree with the response of staff to a suggestion that the SDC be assessed and collected at the time of the initial sale of a home. He said he did not believe there was a significant amount of water consumed before a home was first occupied. He said he also believed capacity costs arising from new development should be borne by ratepayers, not SDCs.
Commissioner Bartel asked for an explanation of the fiscal impact of eliminating the Deep Wells project from the SDC calculation. Mr. Yanov replied that doing so reduced anticipated revenue by $150,000 a year. Mr. Helgeson added that the reduction totaled $1.4 million over 11 years. Commissioner Bartel said he believed it would be important to recover all Deep Well project exploratory costs when it was incorporated into the SDC charge at a later date.
The motion to approve the SDC proposal and policy changes was adopted, 3:1, with Mr. Dyer voting in opposition.
INTEGRATED ELECTRIC RESOURCE PLAN
Resource Planning Analyst Jim Maloney distributed copies of a document entitled "Paradox Lost - Part 1" and reviewed information it contained regarding Board consideration of a Draft Action Plan to implement the Integrated Electric Resource Plan (IERP). He said Commissioners had requested:
Mr. Maloney said the Board had agreed to rename the Draft Plan the Energy Resource Strategy and to have former members of the Citizen's Involvement Committee and others review it. He reported that staff had made suggestions to add to the draft plan, as follows:
Mr. Maloney reviewed reactions to the Draft Plan received from members of the Citizen Involvement Committee - Bruce Creps, Anne Williams, Julie Aspinwall-Lamberts, and Carl Stiefbold. He reviewed a memorandum regarding the plan received from Angus Duncan, representing the Bonneville Environmental Foundation.
Mr. Maloney recommended that the Board adopt the report with edits and changes made in response to Board, Citizen Involvement Committee, and staff reactions; and that the Board direct staff to return with a detailed Action and Strategy Plan at a later time.
Commissioner Bartel moved, seconded by Commissioner Anderson, that the Board (1) adopt the proposed Integrated Energy Resource Strategy, with suggested edits regarding low-income customers, power quality, and energy efficiency in the distribution system; and (2) direct staff to return in the first quarter of 2000 with an Action Plan designed to address the issues raised at the September 7 Work Session.
Commissioner Bartel suggested that the Board would finalize adoption of the IERP by approving the Action Plan when it was presented.
Commissioner Bartel asked what resources would be used to implement the IERP. Mr. Maloney replied that many of the resources required for Demand Side Management and Renewable resources were already included in the budget. He suggested that other required resources would be more evident when staff presented the Action Plan. Mr. Berggren added that the areas of implementation had been identified and that additional time was required to identify resources for 2001 and beyond.
Mr. Spettel said that a great deal of staff time would be invested in Bonneville Power Authority (BPA) power contract purchases in 2000 and that there would not likely be budget available for development of new projects.
Commissioner Anderson said she believed the proposal was an excellent resolution of concerns raised by Commissioners.
Vice President Dyer determined that no members of the public wished to comment on the proposed IERP implementation plan.
The motion to adopt the IERP and direct staff to prepare an Action Plan was approved unanimously, 4:0.
Mr. Berggren expressed appreciation to Mr. Maloney and staff for two years of significant work on the IERP.
QUOTE THRESHOLD
Risk Manager Debra Wright referred to her memorandum dated October 29, regarding changing Purchasing Rules to set the threshold for require competitive bidding to $5,000. She reviewed background and other information regarding the proposed change included in the memorandum. She said the purpose of the recommendation was to free purchasing personnel to spend addition time on high-dollar, high-risk contracts with more exposure to EWEB.
Commissioner Anderson moved, seconded by Commissioner Bartel that the Board approve a change in EWEB Purchasing Rules to increase the amount at which competitive bids are required for equipment, materials and supplies from $2,500 to $5,000. The motion was adopted unanimously, 4:0.
LAND TRUST DONATION
Environmental Manager Laurie Power referred to her memorandum dated October 28 regarding a Request for Proposals (RFP) to be submitted to qualified land trust organizations interested in managing a grant from EWEB to purchase land and/or conservation easement in the McKenzie River watershed. She stated that the proposed Land Trust Donation was a natural outgrowth of the EWEB Environmental Policy adopted two years previously. She reviewed a chronology of events which had led to the development of the RFP.
Ms. Power stated that the proposed donation would be $500,000, with an additional $500,000 pledged to match other donations to the Trust. She said the RFP was to solicit proposals from land trust organizations to manage the grant. She reviewed EWEB's objectives in establishing the Trust, as follows:
Ms. Power reviewed the schedule related to the proposed RFP, as follows:
Ms. Power asked if any Commissioners would like to serve on the committee to be formed to evaluate responses to the RFP. Commissioner Bishop volunteered to serve. Vice President Dyer said President Smith would also likely be interested in serving.
Commissioner Anderson suggested that RFP Technical Requirement III.A.8 would be more correctly stated if it included EWEB's desire to purchase easements, as well as actual property.
Vice President Dyer suggested that the RFP statement requiring that proposals be "computer generated (typewritten)" was unclear.
Vice President Dyer suggested that RFP Technical Requirement III.A.3 was unclear. Ms. Power replied that it was included to preserve EWEB's interest in case a managing trust went bankrupt or no longer served EWEB's interests.
Commissioner Bartel asked for an explanation of the phrase "as opposed to costs, expenses, and stewardship" in Technical Requirement III.A.7. Ms. Power replied that the statement had been generated by previous concerns of the Board that as much of the EWEB contribution as possible should go to land/easement purchases.
Vice President Dyer asked if Contractual Provision IV.O included insurance protection against the misappropriation of funds by the managing Trust. Ms. Power replied that due diligence requirements of the Trust were built into the RFP through requirement of certification of past performances and descriptions of employees and its board of directors.
Vice President Dyer asked to which Trusts the RFP was being presented. Ms. Power replied that local trusts and national trusts with offices in the Northwest were being solicited, as follows:
Commissioner Bishop suggested that the third objective for establishing the Trust would be better stated if it referred to avoiding a need for further treatment of drinking water, in addition to, or in place of, its statement that it would bring the benefit of minimizing the expense of such treatment. Ms. Power said that she would add the suggested wording to the RFP before it was distributed.
Commissioner Bartel suggested that the word "delegate" be replaced with the word "designee" in Contractual Provision IV.A
Commissioner Bartel moved, seconded by Commissioner Anderson that the concept of the Request for Proposals from bidders interested in managing an EWEB Land Trust contribution be approved.
Vice President Dyer said that he would vote against the motion because he did not support the concept of a Land Trust, because he did not believe it was fiscally the appropriate time to make such a major commitment of EWEB resources, because he was not convinced the proposal would make an impact on the McKenzie River Watershed, because he did not like to give away EWEB resources without retaining some sort of control, and because he preferred that EWEB purchase environmental easements and control their use without using a Trust.
Commissioner Bishop said she would vote for the motion because she believed there was an agreement by the Board to establish the Land Trust.
Commissioner Anderson suggested that Environmental Species Act listings would generate a great deal of support for establishment of the Trust.
Commissioner Bartel said he supported establishment of the Land Trust because he believed it was a worth and correct action.
The motion to approve the concept of the Request for Proposals for managing an EWEB Land Trust contribution was approved, 3:1, with Commissioner Dyer voting in opposition.
TELECOMMUNICATIONS PROJECT REVIEW
Telecommunications Project Manager Ken Beeson referred to his memorandum dated October 28 regarding the Telecommunications Project distributed with the agenda of the meeting. He reviewed information regarding the Phase I construction status, dark fiber licensing, and City of Eugene Memorandum of Understanding included in it, as follows:
Commissioner Anderson suggested that a previously prepared business plan for the Telecommunications Project was not adequate and said she hoped the new plan would be more specific.
Commissioner Anderson asked why no responses were received to the fiber licensing RFP. Mr. Beeson replied that no responses were received most likely because the suggested usage fee was to high and/or the personnel responsible for such decisions had not received the offer. He said that Phase I was not connected to customers and that a focused study was needed to make Phase II possible.
Mr. Berggren said that he was becoming increasingly uncertain about leasing of dark fiber, but that he believed a deliberate and concentrated effort should be made to complete Phase I of the project. He said additional work should be completed quickly and that it was possible that a "strategic alliance" with another entity experienced in the field of telecommunications might be helpful. He suggested that if a business strategy was not set in the near future, an important opportunity would be lost. He also suggested that the opportunity of the project might turn out to be something significantly different than was originally envisioned.
Commissioner Bartel suggested that it would be helpful to learn what other communities were doing in the development of telecommunications systems. He said he was hesitant to join the City of Eugene in a partnership to develop the project because questions of authority would inappropriately dominate the relationship.
Vice President Dyer said that he was becoming "gun shy" about proceeding to Phase II of the project. He said he agreed that it would be important to establish a partnership in the project with an experienced entity. He said he shared the concern of Commissioner Bartel about seeking a partnership with the City of Eugene. He said he believed it would be most positive if there were only a limited number of participants in the project.
Commissioner Bartel said that he believed it was most important to define the issues that needed to be solved in the project.
Commissioner Bishop said that she was concerned that the Telecommunications Project Time Line was becoming too long. She said she agreed that a partnership with an experienced entity was needed. She also said she was concerned about discussion of the dangers of partnership with the City of Eugene because EWEB was the city and acted on its behalf through authority of the City Charter.
LANDSLIDE TECHNOLOGY
Commissioner Bishop referred to the recommended approval of the Personal Services Contract to provide Landslide Technology at the Leaburg Canal which she had requested be removed from the Consent Calender earlier in the meeting. She asked how the requested allocation related to the concerns expressed regarding the potential of a landslide in the area.
Electric Division Director Garry Kunkel explained that the extension of the Business Services Agreement requested by his division for Leaburg Canal landslide technology included engineering and design services related to landslides about which he had expressed previous concerns. He said the resources would fund installation of additional monitors and included work through 2002.
Commissioner Bishop moved, seconded by Commissioner Bartel, that the Landslide Technology Personal Services Contract be approved. The motion was approved unanimously, 4:0.
The meeting adjourned at 10:20 p.m.
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Assistant Secretary President