Board Members present: Susie Smith, Mike Dyer, Sandra Bishop, Dorothy Anderson, and Peter Bartel.
Others present: Randy Berggren, JoAnn Andersen, Ken Beeson, Cathy Bloom, Tom Buckhouse, Ed Case, Marty Douglass, Tim Downey, Cathy Hamilton, Everett Jordan, Garry Kunkel, Roseanna McArthur, Mat Northway, Jim Origliosso, and Krista Hince of the EWEB staff; members of the public; and Daniel Lindstrom, Minutes Recorder.
President Susie Smith called the Regular Meeting of the Eugene Water & Electric Board (EWEB) to order at 7:35 p.m. She determined that no Commissioner wished to alter the published agenda.
CONSENT CALENDAR
President Smith noted that items presented for approval on the Consent Calendar included the following:
President Smith requested that the minutes for the November 23, 1999, Work Session be removed from the Consent Calendar to be considered later in the meeting.
Commissioner Peter Bartel requested that items 7, 14, 15, 18 and 20 be removed from the Consent Calendar to be considered later in the meeting.
Commissioner Mike Dyer moved, seconded by Commissioner Dorothy Anderson , that the Consent Calendar for January 4, 2000, be approved, without the Minutes of the November 16 Work Session and Personal Services Contract items 7, 14, 15, 18, and 20. The motion was adopted unanimously, 5:0.
ITEMS FROM BOARD MEMBERS
Commissioner Bartel expressed appreciation to EWEB employees who worked on New Year's Eve. President Smith added that all those who worked to help EWEB not have operating difficulties related to Year 2000 computing problems should also be thanked.
President Smith expressed appreciation to Commissioners and staff for assistance given to enable the work of the Board during her tenure as President.
Commissioner Sandra Bishop said she also appreciated the work of staff which enabled EWEB to move into 2000 without interruptions of service due to computer malfunctions. She also called attention to a recent editorial in The Oregonian which reported that another utility service provider was offering vouchers to a retail chain in exchange for customer investment in environmentally friendly power. She said she was disturbed by the encouragement to consumption in the program and expressed a hope that EWEB would never engage in such tactics.
CORRESPONDENCE
General Manager Randy Berggren expressed appreciation for the work of staff related to potential computer malfunction related to transition to the year 2000.
Mr. Berggren announced that a meeting previously scheduled for January 6, 2000, had been postponed to a later time when Oregon Governor John Kitzhaber could be present.
Mr. Berggren reviewed the agenda of the next meetings of the Board.
ELECTION OF OFFICERS
President Smith invited Commissioners to nominate persons to serve as president of the Board during 2000.
Commissioner Bartel nominate Commissioner Dyer to serve as president.
President Smith determined that there were no additional nominations of persons to serve as president.
Commissioners voted unanimously (5:0) to elect Mike Dyer to serve as EWEB President during 2000.
President Dyer assumed the chair of the presiding officer of the meeting.
President Dyer invited Commissioners to nominate persons to serve as vice president of the Board during 2000.
President Dyer nominated Commissioner Bishop to serve as vice president.
Commissioners voted unanimously (5:0) to elect Sandra Bishop to serve as EWEB Vice President during 2000.
Mr. Berggren introduced JoAnn Andersen, who had been appointed Director of the newly formed EWEB Customer Services Division.
President Dyer expressed appreciation to Commissioner Smith for her years of service as President of the Board of Commissioners.
APPOINTMENTS
President Dyer referred to a document entitled "Board Appointments" distributed with the agenda of the meeting.
Commissioners discussed appointments to committees for 2000 and created a list, as follows:
• Representative to Lane Council of Governments
• Representative to Western Generation Agency
• Representative to Northwest Energy Coalition
• Representative to McKenzie Watershed Management Council
• Liaison to Special Districts
• Representative to Telecommunications Committee
• Representatives to Master Plan Site Review Subcommittee
Vice President Bishop moved, seconded by Commissioner Bartel, to approve the list of 2000 committee appointments, as discussed, eliminating previous Commissioner representation on the Underground Task Force. The motion was adopted unanimously, 5:0.
BANK SIGNATURE CARDS
Assistant Treasurer Cathy Bloom referred to her memorandum dated December 22, regarding banking resolutions. She noted that five resolutions providing signatory and transfer authorizations for EWEB banking activities were attached. She said adoption of the resolutions were required each time the officers of the Board were changed.
Vice President Bishop moved, seconded by Commissioner Bartel, 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.
TELECOMMUNICATIONS PROJECT PHASE II DEVELOPMENT
Telecommunications Project Manager Ken Beeson reminded Commissioners that the Board had discussed and tentatively approved the draft of an alternate selection process to identify a company to work with EWEB in the development of Phase II of the Telecommunications Project at its December 7 Work Session. He said a public hearing was scheduled on the proposed process to solicit comment.
ALTERNATE SELECTION PROCESS PUBLIC HEARING
President Dyer opened the public hearing on the Telecommunications Project Phase II Development Alternative Selection Process. He determined there was no one present wishing to present testimony on the proposal.
President Dyer closed the public hearing.
ITEMS REMOVED FROM THE CONSENT CALENDAR.
Minutes
Commissioner Smith requested that paragraph 4 on page 2 of the minutes of the November 23, 1999, Work Session be changed, as follows:
President Smith asked the Board to discuss her past expressed concerns related to a seven percent administration overhead fee proposed to be charged on Conservation loans. She said she had asked staff to ensure that such a charge was not already being made. She said she believed having such a fee seemed may be appropriate if it was an accurate approximation of overhead.
President Dyer determined that there was no objection to the request of Commissioner Smith and stated that the minutes were amended.
Commissioner Smith requested that the sentence 1 of Paragraph 5 on page 2 of the minutes of the November 23, 1999, Work Session be changed, as follows:
President Smith said she was concerned that if seven percent was the appropriate administration overhead fee for other departments capital projects, it seemed higher than necessary for Conservation loans because they were more simple to manage than other capital projects.
President Dyer determined that there was no objection to the request of Commissioner Smith and stated that the minutes were amended.
Commissioner Smith requested that paragraph 1 on page 4 of the minutes of the November 23, 1999, Work Session be changed, as follows:
President Smith determined there was consensus to adopt the 2000 Budget as proposed, with a seven percent overhead charge on Conservation capital loans included; and to establish a commitment to allocate five percent to conservation in the 2001 Budget, with net of the overhead charge being additional.
President Dyer determined that there was no objection to the request of Commissioner Smith and stated tCommissioner Smith requested that the words "General Fund" be capitalized in paragraphs 5, 6, and 7 on page 4 of the minutes of the November 23, 199, Work Session.
President Dyer determined that there was no objection to the request of Commissioner Smith and stated that the minutes were amended.
Commissioner Smith requested that a new paragraph be added following paragraph 7 on page 4 of the minutes of the November 23, 1999, Work Session be changed, as follows:
President Smith suggested that issues related to the General Fund were fictitious because funds were actually going into beginning of the year cash balances, as staff had confirmed that EWEB does not have a General Fund.
President Dyer determined that there was no objection to the request of Commissioner Smith and stated that the minutes were amended.
Commissioner Bishop requested that sentence 2 of paragraph 4 on page 12 of the minutes of the November 23, 1999, Work Session be changed, as follows:
Mr. Beeson replied that the core Telecommunications Project system would be operated with existing staff and that the budgeted positions would be filled when and if they were needed.
Personal Services Contract - Northwest Economic Research
Electric Division Director Garry Kunkel stated that Northwest Economic Research was a single individual who currently represented EWEB as an expert witness in Bonneville Power Administration (BPA) rate cases. Commissioner Smith observed that the personal services contact was needed because EWEB no longer had staff to provide such representation. Mr. Berggren added that the individual involved also contracted with other utilities for similar services and was very knowledgeable.
Personal Services Contract &endash; Advanced Marketing Research
Corporate Services Division Director Roseanna McArthur stated that the contract had been increased for 2000 because additional services would be required.
Personal Services Contracts &endash; Melvin R. Smith, Employee Benefits Consulting
Ms. McArthur stated that Melvin R. Smith was a consultant used to determine appropriate employee benefits since a person with appropriate expertise was not available on EWEB staff. She said Mr. Smith had served as such a consultant for EWEB for five years and was able to negotiate with benefit providers to provide significant cost savings. She said that a full benefits survey would be conducted in 2000.
Commissioner Smith said she believed the cost of the contracts were well-grounded, considering the potential cost of an equally qualified employee.
President Dyer asked if Mr. Smith was an insurance broker. Mr. McArthur replied that she did not believe he was, but that he negotiated with brokers.
President Dyer observed that independent insurance brokers often performed the functions undertaken by Mr. Smith at no cost. Ms. McArthur replied that the consultation of Mr. Smith had proven valuable because he was familiar with the needs of EWEB and could negotiate with providers.
Personal Services Contract &endash; The Energy Outlet
Commissioner Bartel asked what the personal services contract with The Energy Outlet provided. Energy Management Services Manager Mat Northway replied that the contract provided for staff, management, and day-to-day operations of The Energy Outlet. He pointed out that the Springfield Utility Board (SUB) and BPA had formerly joined EWEB and the Emerald People's Utility District and Blachly-Lane Electric Cooperative in sponsorship of The Energy Outlet.
Commissioner Smith asked if the expenses of the personal services contract were considered "market transformation" and included in the five percent of net revenue dedicated to conservation. Mr. Northway replied that they were.
Commissioner Bartel stated that he was concerned that space occupied by The Energy Outlet in the Midgley's Building produced no income for EWEB. He said he questioned whether the location was the most advantageous for the outlet since there was little potential customer foot traffic in the area. He suggested that the operation be reconsidered.
Mr. Northway said that operation of The Energy Outlet had proven very successful at its present location, in comparison to its previous one on the Downtown Eugene Mall.
President Dyer said that he was concerned that EWEB was providing both the location for operating The Energy Outlet and a personal services contract for its operation. Mr. Northway replied that the cost of the project was distributed among the sponsors on a rate commensurate to their customer base. He said that if $20,000 rent were charged for use of the Midgley's Building, it would cost EWEB $16,000.
President Dyer said that he did not believe EWEB should be paying the cost of housing and operating The Energy Outlet. Mr. Northway replied that efforts were being made to secure 501(c)(3) nonprofit corporation status for the project. He said that such status would permit application for foundation and government grants to support the project and possibly lead to expansion of its services.
President Dyer asked how many employees were involved in The Energy Outlet. Mr. Northway replied that a total of 1.2 full-time equivalent (FTE) positions, divided among a number of persons, were filled in the project.
President Dyer asked for a fuller explanation of the use of the personal services contract. Mr. Northway replied that the expenses covered included labor, training classes, promotional material, Internet Worldwide Web Site servicing, and telephone.
President Dyer said that he would appreciate seeing a report on the activity taking place in The Energy Outlet.
Commissioner Smith suggested that consideration of the appropriateness of The Energy Outlet occupying a portion of the Midgley's Building could be incorporated into the work plan of the Master Plan Site Plan Site Review Subcommittee.
Mr. Northway observed that it would be difficult for EWEB to spend five percent of its net revenue on conservation, without the market transformation work of The Energy Outlet.
Commissioner Bartel said he would appreciate having a business plan in place for The Energy Outlet.
Mr. Berggren asked if the request of Commissioner Bartel should be considered to have high priority. Commissioner Bartel replied that he believed it would be valuable to distinguish between doing a valued thing and providing an important service. He also said he believed it would be helpful to determined if there were other more appropriate options for location of The Energy Outlet.
Commissioner Smith suggested that issues raised about the personal services contract be treated separately from those about the location and operation expenses of The Energy Outlet. She said it would be best to consider location issues in the context of the Master Plan Site review and that she supported continuation of the personal services contract.
President Dyer suggested that the personal services contract be approved and that consideration of whether the current location for The Energy Outlet was the best available be discussed separately. He also suggested that consideration be given to whether the project was a valuable service or whether the cost of it should be spent on another activity.
Vice President Bishop moved, seconded by Commissioner Bartel, that the amended minutes of the November 23, 1999, Work Session; and the personal services contacts for Northwest Economic Research, Advanced Marketing Research, Melvin R. Smith, and The Energy Outlet be approved. The motion was adopted unanimously, 5:0.
Vice President Bishop presented a computer accessory commemorating the Fall Creek Wind Generation project to President Dyer.
Commissioner Smith stated that she had received a 1912 EWEB Annual Report as a gift and would be willing to share it with other Commissioners.
The meeting adjourned at 8:30 p.m.
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Assistant Secretary President