Board Members present: Mike Dyer, Sandra Bishop, Peter Bartel, and Susie Smith. Commissioner Dorothy Anderson was absent and excused.
Others present: Randy Berggren, Dean Ahlsten, Ken Beeson, Terry Bequette, Cathy Bloom, Tom Buckhouse, Ed Case, Marty Douglass, Kathy Gray, Eric Hiaasen, Cathy Hamilton, Dick Helgeson, Everett Jordan, Garry Kunkel, Mike Logan, Bob Lorenzen, Roseanna McArthur, Mike Maloney, Mat Northway, Jim Origliosso, Scott Spettel, Dick Varner, Debra Wright, and Krista Hince of the EWEB staff; and Daniel Lindstrom, Minutes Recorder.
President Mike Dyer called the Special Meeting of the Eugene Water & Electric Board (EWEB) to order at 7:40 p.m.
AGENDA CHECK
President Dyer noted that Item 6, the President's Annual Speech, would be removed from the Agenda and re-scheduled for the February 1, 2000, Regular Meeting. He determined that there were no other requests to alter the published Agenda.
CONSENT CALENDAR
President Dyer noted that items presented for approval on the Consent Calendar included the following:
General Manager Randy Berggren requested that approval of the Minutes for the December 7 Work Session be removed from the Consent Calendar to be considered later in the meeting.
Commissioner Sandra Bishop requested that approval of the Minutes for the December 7 Regular Meeting be removed from the Consent Calendar to be considered later in the meeting.
Commissioner Smith requested that approval of Item 6, Personal Service Agreement - L.H. Morris Electric, be removed from the Consent Calendar and considered later in the meeting to enable her to request additional information.
Commissioner Bishop moved, seconded by Commissioner Peter Bartel, that the Consent Calendar for January 18, 2000, be approved, without the Minutes of the December 7 Work Session and Regular Meeting and Item 6, Personal Service Agreement - L.H. Morris Electric. The motion was adopted unanimously, 4:0.
ITEMS FROM BOARD MEMBERS
Commissioner Susie Smith stated that she would be unable to attend the February 1 meetings of the Board at which the evaluation of the General Manager was scheduled to be considered.
Mr. Berggren stated that it would be possible to re-schedule the evaluation to the meeting on February 15.
Commissioner Bartel stated that he would not be able to attend the February 15 meeting.
President Dyer suggested that the evaluation of the General Manager be scheduled to take place at a Special Meeting scheduled in February when all Commissioners could be present.
Commissioner Smith expressed appreciation for the work of staff to organize a Public Forum on proposed changes to solar access provisions in the Eugene Land Use Code scheduled on January 26 at 7:00 p.m. She said she hoped EWEB would provide helpful technological testimony at the forum.
Commissioner Smith said she missed receiving "Back of the Bill" comments and hoped Commissioners could again receive them on a regular basis.
Commissioner Bartel reported that he had represented EWEB at the Appreciation Dinner of Lane Council of Governments. He said he had enjoyed the opportunity to make a presentation on behalf of the Board.
Vice President Bishop expressed appreciation for the opportunity to attend a conference entitled "Buying and Selling Electric Power" February 10-11 in Seattle. She said she would make a report about it to the Board and bring back printed information to share with other Commissioners.
CORRESPONDENCE
Mr. Berggren reported that the Eugene Chamber of Commerce was hosting an symposium about the local economy in 2000 on February 4 and invited members of the Board to participate. Commissioners Bartel, Bishop, and President Dyer expressed and interest in attending.
Mr. Berggren encouraged Commissioners to attend the Public Forum on proposed changes to solar access provisions in the Eugene Land use Code hosted by EWEB on January 26.
Mr. Berggren reported that he had revised formats for presentation of the statements related to his performance evaluation, which attempted to follow suggestions of Commissioners made at the January 4 Work Session.
Mr. Berggren distributed copies of a memorandum from Hydroelectric Re-licensing Manager Gale Banry dated January 18, regarding the 9th Circuit Court Decision on Appeals of an earlier court decision.
Electric Division Director Garry Kunkel reviewed the memorandum. He said all appeals of an August 11, 1999, decision by the 9th Circuit Court regarding lawsuits against the Federal Energy Regulatory Commission (FERC) issuing a license for the Leaburg-Walterville hydroelectric project had been denied. He explained that the denials could be appealed to the U.S. Superior Court. He said staff was still seeking to determine the full implications of the action.
Mr. Kunkel said denial of the appeals preserved some rights of agencies involved in the lawsuit and took some away from FERC. He said if the denial was upheld, decisions regarding fishways could only be challenged by EWEB through litigation. He said other issues also continued unresolved.
Mr. Berggren distributed copies of a letter to a representative of Weyerhaeuser Company congratulating it on the 100th anniversary of its founding.
Mr. Berggren reported that he had held a conversation with the presiding judge of the Eugene Federal Court regarding the potential of a portion of EWEB property becoming one of several "designated sites" for a planned new court facility. He said he would keep the Board informed of further discussions regarding the possibility.
Commissioner Bartel said that he had received a copy of a memorandum regarding the consideration being given to EWEB property being the location of a new Federal Courthouse. He said he had been disturbed by the possibility of "clandestine taking" of property and was concerned about the effect it had on deliberations of the Master Plan Site Review Subcommittee. He expressed a hope that EWEB could say "No Thanks" to the opportunity in advance.
President Dyer said he would want to find out more about what might be involved in the possibility of a Federal Courthouse being located on EWEB property before making a decision regarding i
Commissioner Smith said she would like EWEB to avoid publicity gaffes similar to those committed by the Eugene City Council regarding the siting of a Federal Courthouse.
President Dyer said it might be appropriate for the subcommittee studying appropriate uses of EWEB property to seek a consultation to learn whether serious consideration was being given to using EWEB property.
Vice President Bishop said she was hesitant to support the possibility of a portion of EWEB property being used for a Federal Courthouse because activity connected with it would not be compatible with the EWEB location.
Mr. Berggren reviewed the agenda for the February 1 and 15 meetings of the Board.
TELECOMMUNICATIONS -- ALTERNATE PROCUREMENT PROCESS
Telecommunications Project Manager Ken Beeson said he was appearing to ask for final approval of a resolution authorizing an alternate procurement process for selection of a development partner for Phase II of the EWEB Telecommunications Project. He reminded the Board of its consideration of the proposed process in December 1999 and that a public hearing on it had been held January 4, 2000.
Vice President Bishop moved, seconded by Commissioner Bartel, to approve the Resolution Authorizing Final Adoption of an Alternative Procurement Process for Selection of Telecommunications Project Phase II Development Partner. The motion was adopted unanimously, 4:0.
RESTRUCTURING OF TRANSMISSION GRID OPERATION
Electric Engineering Manager Dean Ahlsten said his presentation would focus on activities underway to restructure institutions which promote the reliability of electricity and its transmission grid. He distributed a packet of material, including copies of documents, as follows:
Mr. Ahlsten reviewed information contained in the documents, using overhead projections to make the NERC, WIO, RTO, and WSCC presentations.
Commissioner Smith asked if EWEB would soon be asked to affiliate with the Northwest Power Pool Operating Committee and WSCC. Mr. Ahlsten replied that staff would be making a recommendation for such affiliations because changes in the cooperative spirit previously prevalent among utilities in the northwest had made the organizations necessary to develop policies to better ensure the reliability of power.
BONNEVILLE POWER ADMINISTRATION SUBSCRIPTION PRODUCTS
Resource Planning Analyst Jim Maloney discussed recent developments and staff deliberations regarding Bonneville Power Administration (BPA) power products being developed. He distributed copies of a document entitled "Power Purchase Portfolio Strategies" and reviewed actions to be taken to implement the strategies, as follows:
Mr. Maloney said recent actions to maximize potential entitlement included:
Mr. Maloney reviewed the schedule for finalizing BPA contracts and the terms of contracts to be implemented. He distributed copies of documents entitled "Preliminary Assessment of the Risk Factors Associated with Alternative BPA Products," "Power Products Decision Tree," and "Miscellaneous Factors Related to Bonneville Power Product Selection - November 30, 1999." He reviewed information contained in the documents.
FINANCIAL POLICIES
Treasurer Jim Origliosso referred to his memorandum dated January 12, regarding Financial Policies.
Commissioner Smith moved, seconded by Commissioner Bartel, that EWEB Financial Policies and updated staff interpretation of them be approved.
Vice President Bishop commended staff for their work on the policies and expressed appreciation for the increased understanding of EWEB financial operations.
Commissioner Bartel requested that sentence 2 of paragraph 4 of the interpretative discussion of Policy 11 "Billing and Collections Policy" be amended, as follows:
In addition, efforts are ongoing we will make firm commitments to build stronger partnerships with community social service organizations that will create preventive strategies for avoiding disconnection of services.
President Dyer determined there was no objection to the request of Commissioner Bartel and stated that the sentence was amended.
The motion to approve the Financial Policies and staff interpretation of the policies was adopted unanimously, 4:0.
WINDPOWER SALE TO LOS ANGELES DEPARTMENT OF WATER AND POWER.
Power Management and Planning Manager Scott Spettel referred to his memorandum dated January 13, regarding an opportunity to sell WindPower. He discussed how the potential of negotiating a series of monthly sales of wind energy from the Foote Creek Rim Wind Project to the Los Angeles Department of Water & Power had developed and what it would entail. He invited Commissioners to discuss issues related to the potential sales.
Commissioner Smith asked how the price of the sales would relate to the price for the same energy paid for by EWEB customers. Mr. Spettel replied that the prices would be approximately equal.
Commissioner Smith asked if all opportunities for selling the wind energy within the state of Oregon had been exhausted. Mr. Berggren replied that all opportunities for such sales had not been explored, but explained that the potential sale to the Los Angeles utility was to be on a month-to-month basis. Mr. Spettel added that making the sales could become a "foot in the door" for additional long-term sales in the future.
Commissioner Smith said she would support the sales if they contained the condition that income from them would be dedicated to construction of additional "environmentally friendly" energy resources.
Vice President Bishop said she was concerned that the replacement power to meet retail load requirements necessitated by the sales would be obtained from the open market and would alter the mix of power associated with EWEB's supply portfolio. Mr. Spettel said the potential sales would not impact the generation of energy, but the use of it.
Vice President Bishop asked why the sales were being contemplated. Mr. Spettel replied that they were being considered because they would produce increased income and could establish a beneficial relationship for EWEB. He said the relationship could lead to a partnership for developing renewable energy sources in the future.
Commissioner Bartel asked what the annual debt service was for the Foote Creek Rim Wind Project. Mr. Origliosso replied that approximately $500,000 was included as debt service in the annual budget. Mr. Spettel added that approximately one-half of the budgeted amount was covered by WindPower subscriptions of EWEB customers.
President Dyer stated that he supported the potential sales because they would increase EWEB income and made the WindPower project be closer to producing a profit.
Vice President Bishop said she was inclined to support the suggestion of Commissioner Smith to make the sales with the stipulation that the income be set aside for future development of renewable energy resources. She said she believed the opportunity to purchase WindPower should also be given to partners in the Oregon Utility Resource Coordination Association (OURCA). Mr. Berggren replied that he believed it would be difficult to encourage the partners to focus on the possibility of such purchases at the present time.
Commissioner Smith said she was hesitant to support the sale of power to a Los Angeles utility. She said EWEB was not established to be a general power broker, but to be of benefit to the citizens of Eugene. She said she would need additional information to support the sales.
Commissioner Bartel said he was concerned in the potential sales that they might result in "double selling" of WindPower.
Mr. Spettel said he interpreted comments of the Board to not support the potential sales and stated that he would not continue discussions with the Los Angeles utility until directed to do so by the Board.
ITEMS REMOVED FROM THE CONSENT CALENDAR
Minutes
Mr. Origliosso requested that sentence 3 of paragraph 4 of the Minutes of the December 7 Work Session be changed, as follows:
He explained that making the $3 million payment showed EWEB's commitment to employee benefits and eliminated a reduced the rate increase by $250,000 rate increase.
President Dyer determined that there was no objection to the request of Mr. Origliosso and stated that the minutes were amended.
Mr. Origliosso requested that sentence 2 of paragraph 5 of the Minutes of the December 7 Work Session be changed, as follows:
He reported that Portland General Electric (PGE) the City of Portland was borrowing $250 million to make an advance payment.
President Dyer determined that there was no objection to the request of Mr. Origliosso and stated that the minutes were amended.
Mr. Origliosso requested that sentence 1 of paragraph 6 of the Minutes of the December 7 Work Session be changed, as follows:
Mr. Origliosso said PERS had previously paid interest for an entire year on payments made in December, but appeared to not be prepared to continue the practice with the PGE City of Portland payments.
President Dyer determined that there was no objection to the request of Mr. Origliosso and stated that the minutes were amended.
Mr. Origliosso requested that paragraph 7 of the Minutes of the December 7 Work Session be changed, as follows:
Mr. Origliosso said making the $3 million deposit would eliminate EWEB PERS Budget concerns until 2002 2001.
President Dyer determined that there was no objection to the request of Mr. Origliosso and stated that the minutes were amended.
Vice President Bishop requested that sentence 2 of paragraph 5 of the Minutes of the December 7 Regular Meeting be changed, as follows:
Mr. Beeson replied that he did not believe such an eventuality was likely, but that if it did occur, it was likely that the goals for Phase I II would be re-visited.
President Dyer determined that 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 9 of the Minutes of the December 7 Regular Meeting be changed, as follows:
She said it was also agreed that EWEB only should deal with sections of the charter related to it to be removed.
President Dyer determined that there was no objection to the request of Commissioner Bishop and stated that the minutes were amended.
Personal Service Agreement
Commissioner Smith asked for an explanation of Personal Service Agreement proposed with L.H. Morris Electric for Energy Management Services.
Residential Programs Program Manager Bob Lorenzen stated that the contract was for replacement and installation of new thermostats in the Electric Thermostat Program. He said $86,000 of the cost of the contract would be replaced by customers and the balance would be paid by the Housing Authority and Community Service Agency of Lane County.
Vice President Bishop moved, seconded by Commissioner Barter, that the amended Minutes of the December 7, 1999, Work Session and Regular Meeting and Personal Services Agreement with L.H. Morris Electric be approved. The motion was adopted unanimously, 4:0.
The meeting adjourned at 10:10 p.m.
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Assistant Secretary President